China’s next debt jitters will be among households 31 Jul 2019 Worries over bad loans are concentrated in the corporate sector but families are taking on borrowings at about twice the rate of overall economic growth. The relentless increase is unsustainable. As other engines sputter, consumers may not be a reliable fallback for Beijing.
Aussie monetary future is everyone else’s past 31 Jul 2019 Australia managed to avoid the ultra-low rates other countries have shouldered for years. Now growth is slowing, and it is up against the limits of conventional policy. An improvement in second-quarter inflation and a cheerier end to 2019 won't change the need for new tools.
China can toss Huawei a lifeline with a 5G splurge 30 Jul 2019 The telecom giant blacklisted by Washington in May says first-half revenue rose 23%, despite tensions abroad. Longer term, it is Beijing’s push on next-gen mobile networks that will shape Huawei’s fate. Forcing carriers to step up infrastructure spending can soften the U.S. blow.
Sony reaps accidental rewards from unruly sprawl 30 Jul 2019 Sales of chips offset falling video-game revenue at the Japanese group, pushing its quarterly operating profit up 18%. Even so, there's little strategic value keeping the two divisions together. Sony's music and movies arms, though, make for a better kind of conglomerate.
India’s richest man closes in on Jeff Bezos 30 Jul 2019 Mukesh Ambani’s Jio has defied expectations. Three years in, the upstart has become the country’s top mobile telco. That puts $111 bln parent Reliance Industries, an oil giant with retail ambitions, on track to conquer consumers with its heady blend of AT&T and Amazon.
LSE’s $27 bln data deal is bold independence bid 29 Jul 2019 The London exchange owner has long been a takeover target. Now CEO David Schwimmer is looking to buy financial information outfit Refinitiv. That would tap new growth and business lines and diversify outside the UK. It’s a big, complex and highly leveraged attempt to go it alone.
How China turned wine into vinegar for Remy 29 Jul 2019 Remy Cointreau spotted China’s wine potential too soon. Its 1980 joint venture proved a ground-breaking disaster. The venture’s shares, halted for six years amid fraud allegations, have resumed trade at half the closing price. Sometimes it’s worst to be first.
China slowly clarifies its bank bailout message 29 Jul 2019 Two months after officials seized one regional lender, state-backed financiers are taking stakes in Bank of Jinzhou, which holds a roughly $100 bln balance sheet. Mixed signals plagued the last round. The trick now will be sticking to a message that keeps investors a bit nervous.
Macau’s medium-big spenders are spoilt for choice 29 Jul 2019 Las Vegas Sands says revenue from wealthy middle-class punters in the Chinese gambling enclave is falling – the first slump since 2016. Local rivals like Melco and MGM, as well as other Asian competitors, invested heavily in serving them. They may have over-built.
Asia can lead an equity research rethink 29 Jul 2019 Thin capital markets, opaque companies and the diversity of a region stretching from Tokyo to Karachi makes it even harder for banks to make money from analysing stocks. But schemes like Singapore's analyst grants suggest Asia may also be a testing ground for new business models.
Chinese IPOs get a red card from foreign investors 26 Jul 2019 Wanda Sports raised $190 mln in a downsized New York listing, following DouYu and other companies that have shelved or valued offers cheaply due to poor demand. The U.S.-China trade war is making buyers wary of mainland issuers, and better returns can be found elsewhere.
Indian mogul’s ode to Anglo ends on duff note 26 Jul 2019 Anil Agarwal is dumping his roughly 20% stake in miner Anglo American. The complex holding structure, dubbed “poems” by creator JPMorgan, meant he only partly profited as the target’s shares soared. The bigger prize, meshing it with his Vedanta empire, also proved elusive.
Tencent may be Nintendo’s best console accessory 26 Jul 2019 The video-games giants are partnering to launch the Japanese group's devices in China. The benefits of deeper ties appear irresistible. Nintendo can tap Tencent’s mobile expertise and user base, while coveted characters like Super Mario can boost Tencent's reach outside China.
SoftBank’s new $108 bln vision is broader, fuzzier 26 Jul 2019 Vision Fund 2 so far lacks endorsement from prior investors Saudi Arabia and Abu Dhabi. It has plenty of heft, though, and less Saudi money might relieve wary investees. Focus is an issue: targeting anything “tech-enabled” gives Masayoshi Son a very long spending leash.
Hong Kong fills best worst job in central banking 26 Jul 2019 As the new head of the HKMA, Eddie Yue is on track to get a salary that puts U.S. Fed chief Jay Powell in the shade. A pegged currency means he needn’t fret much about rate-setting or attacks on his independence. The catch: if problems really escalate, he has fewer tools.
Review: Fighting the second Cold War, lab by lab 26 Jul 2019 U.S. scientific power is a potent diplomatic weapon. Greg Whitesides's new book details how Washington used research largesse to reward friends and punish the Soviet Union. Now a similar conflict is brewing with China, a more formidable rival. This time, there can be no winner.
Viewsroom: UK’s new PM looks for the exit 25 Jul 2019 Boris Johnson helped persuade Britons to vote to leave the EU. London’s former mayor now leads the country – and may find his pledge to quit the European bloc hard to keep. Meanwhile, U.S. watchdogs are circling Amazon, Alphabet, Apple and Facebook. Plus: Protests rock Hong Kong.
Renault’s de-Ghosnification helps up to a point 25 Jul 2019 The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.
Tata adds fuel to India’s automotive misery 25 Jul 2019 Cars are a potent symbol of rising wealth, and Indians are buying fewer of them. Tata Motors’ earnings add to fears of a deep slowdown. There are various causes, from mounting ownership costs to adoption of Uber. Yet the automobile still looms large in the country’s future.
Nissan’s awful earnings deliver a gift to Renault 25 Jul 2019 The Japanese car giant’s 95% drop in quarterly earnings has prompted it to announce 12,500 job cuts and plans to reduce capacity. But boss Hiroto Saikawa has previously underestimated how bad things are. That weakens his hand in resisting closer ties with Nissan’s French partner.