Alibaba readies itself for lighter shopping days 1 Nov 2019 Quarterly sales of $17 bln beat expectations, but growth has come down sharply from a year earlier. Boss Daniel Zhang is shoring up the core e-commerce unit, while investing in new areas. Proceeds of $15 bln from a mooted listing in Hong Kong will also help to soften the blow.
Macquarie shape-shifts into lucrative green niche 1 Nov 2019 The $30 bln Aussie bank is good at morphing to stay ahead. Commodities hedging helped lift first-half earnings. Its next phase is a bet on renewables. With fewer constraints than rivals, Macquarie is well-placed to go green. New projects may be shorter-term though, and riskier.
Amgen pops $2.7 bln dose of risky Chinese medicine 1 Nov 2019 The pharma giant is paying a 36% premium for a fifth of biotech group BeiGene. That feels rich for a pre-profit upstart that just fought off a short-seller attack. But the partnership promises the American company quick access to China’s massive cancer market at a critical time.
China’s banking heavyweights flex fee muscles 1 Nov 2019 Third-quarter earnings from $288 bln ICBC and peers offered pleasant surprises, despite economic malaise, rate cuts and loans to riskier borrowers. In part, that’s down to service charges, which mega-lenders have been able to hike this year. Punier rivals are less lucky.
Viewsroom: LVMH wants more sparkle 31 Oct 2019 The $200 bln luxury conglomerate is making a $14.5 bln bid for Tiffany. The iconic brand known for putting its bling in blue boxes would be wise to accept the proposal. Plus: Venezuela’s leadership saga and a surreal debt drama collide. And: the world’s most expensive chocolate.
Goldman faces drip-drip 1MDB pain like Jho Low 31 Oct 2019 The alleged mastermind of the Malaysian fund fraud will pay the U.S. $700 mln. The deal’s loose ends hint at future pain for others, including the Wall Street bank. CEO David Solomon wants to draw a clean line under the scandal. Instead Goldman could end up paying multiple times.
Cox: Sergio Marchionne posthumously gets his deal 31 Oct 2019 Fiat Chrysler’s $50-bln-plus merger with Peugeot culminates a journey begun by the Italian carmaker’s former CEO to reduce capacity and wasteful spending in the industry. It took some fits and starts, and dalliances with GM and Renault, but has finally come to fruition.
Vodafone is running out of options in India 31 Oct 2019 The telecom giant’s local unit is straining under $14 bln of debt. New Delhi has added to the burden, charging billions in contested levies, while red tape holds up its tower sale. Without fresh capital or debt relief for Vodafone Idea, India is heading towards a duopoly.
China sends two messages with one Macau invitation 31 Oct 2019 Beijing may have suggested the gambling hub as a venue for presidents Trump and Xi to sign an interim trade deal. That snubs restive Hong Kong. But it’s uncomfortable too for casino bosses like Trump backer Sheldon Adelson: they need little reminding of how much there is to lose.
Hong Kong exceptionalism lives another day 31 Oct 2019 The economic cost of the protests continue to mount with the territory now in a technical recession. Yet even as Chinese authorities tighten their grip on the city, Hong Kong’s special status endures, and past precedent suggests it can bounce back from the turmoil.
StanChart may get a helping hand from Japan 30 Oct 2019 The UK bank is shopping its 45% stake in $3 bln Indonesian lender Permata, which it controls with a local conglomerate. Offloading risky assets will help boss Bill Winters with his sluggish recovery. Fortunately, SMFG and its peers are keen to gamble on the faster-growing market.
TikTok calls the tune for SoftBank’s comeback tour 30 Oct 2019 After WeWork's collapse, disappointing debuts from Uber and Slack, and now Wag, boss Masayoshi Son needs a hit. His bet on the $78 bln Chinese outfit behind the popular video app looks promising. TikTok's troubles in Washington and beyond, though, may derail a chart-topping IPO.
Xi Jinping’s crypto call seals stock-picker crown 29 Oct 2019 U.S. President Barack Obama presciently called the post-crisis S&P 500 trough and Donald Trump’s tweets have rattled equities. Mere intimations from China’s leader, though, can really get share prices marching. His blockchain shout-out underscores authoritarian market power.
Nomura revival buys CEO time and Wall Street cred 29 Oct 2019 The battered Japanese bank logged its best quarterly earnings in 17 years. Though a disposal helped, boss Koji Nagai also managed to boost wholesale revenue outside Japan while cutting costs. Combined with a recent share price bounce, he’s earned a bit more shareholder patience.
Super Mario turbo-charges case for Sony breakup 29 Oct 2019 Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.
Great Wall Motor’s lean machines defy China gloom 29 Oct 2019 The carmaker surprised with a 507% increase in third-quarter earnings. The homegrown marque has made the best of an historic slowdown in domestic demand by squeezing suppliers and juicing margins. The market might stay sour, but here’s a recipe for making lemons into lemonade.
HSBC unveils mandate for radical shakeup 28 Oct 2019 Interim CEO Noel Quinn scrapped an 11% return on tangible equity target as pre-tax profit fell 12%. Ideas like offloading the French unit are easy, but he and Chairman Mark Tucker will have to think bigger to satisfy shareholders. The bad results make bolder plans easier to sell.
Dormant Samsung rouses Seoul’s other giants 28 Oct 2019 The conglomerate is in disarray: scion Jay Y. Lee is off the board of its $288 bln electronics business, and faces more jail time. Bosses at rival SK Group and autos empire Hyundai, meanwhile, are charging ahead in self-driving tech and other ventures. Korea Inc is due a shakeup.
Mike Pence extends prickly olive branch to China 25 Oct 2019 The U.S. vice president blasted Beijing for protectionism, aggression and oppression in a long-delayed speech. He also blamed China for "decoupling" from global norms, but welcomed it to rejoin. The invitation may keep negotiations for a weak trade deal on track, but little else.
Tesla’s China strategy is upside-down 25 Oct 2019 Elon Musk says his Shanghai factory is almost ready, after third-quarter profit surprised on the upside. It will produce more affordable designs, aiming for some 150,000 Model 3 units a year. But China’s mass market is soft. Musk risks overpromising and underdelivering again.