Dimming Huawei could help recharge Xiaomi phones 20 May 2019 The Chinese telecom group led by Ren Zhengfei may have lost access to Google's apps and services. This setback hits as $34 bln Xiaomi offset fewer total handset shipments last quarter by selling pricier models. It would further benefit from a weaker Huawei in Europe and beyond.
China’s e-commerce upstart makes its presence felt 20 May 2019 The $26 bln Pinduoduo has faced regulatory scrutiny and allegations of dodgy numbers. Now it boasts more shoppers than rival JD and has put Alibaba on defence in parts of the country. The upstart’s latest quarterly loss, though, keeps alive questions about the cost of growth.
Indian investors missed memo on crony capitalism 20 May 2019 Companies linked to Anil Ambani and Gautam Adani jumped in value after exit polls tipped Narendra Modi to win easily. Both tycoons are deemed close to the prime minister who has, in fact, made strides tackling corruption. The market moves imply perceptions will be hard to change.
Tencent need not envy Jack Ma’s finance fame 20 May 2019 The $432 bln tech giant has offered investors a peek into its mobile money arm. It is accelerating into payments and wealth management, catching up with the Alibaba founder’s Ant Financial. Ma’s aggressive expansion rankled bank regulators. Tencent would be wise to stay low-key.
Modi win will underpin India’s market exuberance 20 May 2019 Exit polls suggest the prime minister’s ruling BJP alliance is headed for an easy win. Continuity will ease fears of reckless spending. Narendra Modi’s return also should keep stock valuations stretched as expectations for reform overshadow signs of an economic slowdown.
Mother Earth loses the Australian election 20 May 2019 Prime Minister Scott Morrison's coalition held power over a Labor party that campaigned on climate change and was tipped to win for over a year. Some wealthy seats backed the cause, but most voters were alarmed at the economic cost. It’s a bad sign for the world from Down Under.
Luckin investors are short America, long lunacy 17 May 2019 An unprofitable Chinese coffee chain that didn’t exist two years ago was valued at $6 bln within minutes of its New York IPO. Luckin is well placed if frosty Sino-American relations ping back on U.S. rival Starbucks. Beyond that, the debut is every bit as irrational as it sounds.
India’s unicorns leading charge to credit boom 17 May 2019 Ride-hailing outfit Ola and payments app Paytm, backed by Warren Buffett’s Berkshire Hathaway, just unveiled credit cards in a country where debit cards dominate. Generous rewards from SBI and Citi follow tech’s subsidy playbook. In this case, though, growth may be profitable.
Mourned Aussie prime minister raises ballot bar 17 May 2019 Bob Hawke, dead at 89, floated the currency, boosted trade and broadly opened the country. Though his eight-year tenure ended in 1991 as Australia slid into recession, there hasn’t been one since. His legacy looms large as voters go to polls this weekend, amid a cooling economy.
China exhibits worrying trade war restraint 17 May 2019 Beijing could retaliate against Washington using rare earths, U.S. debt or American companies on the mainland, a popular tabloid suggests. A better question is why such weapons, some deployed in the past, now sit idle. It points to a different, more dangerous, conflict.
Baidu is stuck in a downward tech spiral 17 May 2019 China's $50 bln search engine has posted its first loss since going public. A slow economy is not helping. But there are other problems: upstarts like ByteDance are threatening its core business, while new ventures in AI have yet to deliver. Boss Robin Li is running out of time.
Viewsroom: The lasting effects of Trump’s tariffs 16 May 2019 Washington and Beijing may yet find a way to end their escalating trade war soon. But for many businesses, the damage already inflicted will be hard to undo. Plus: CEO Mark Zuckerberg might not welcome more calls to break up Facebook, but shareholders could benefit.
U.S.-China tech war may split progress in two 16 May 2019 Nationalism has sparked Washington and Beijing to begin separating their tech sectors, on supposed security grounds. Economics promises to prolong the struggle. Clustering, scale and technical prowess mean both sides can succeed in areas like 5G even if the outcome isn’t optimal.
Walmart is a test of broader tariff harm 16 May 2019 The retailer reported U.S. sales rose 3.4%, yet momentum could wane once higher border levies on another $200 bln of imports from China kick in. Walmart may not be the most exposed business, but Americans shopping at its more than 5,300 stores will feel it in their pockets.
Miners have a shot at earning green halo 16 May 2019 Vale’s dam disaster was a reminder of the industry’s social and environmental pitfalls. At the same time, the likes of BHP and Glencore can tout their ability to supply future low-carbon economies. ESG activists punished coal, but they’re in position to reward diggers, too.
Washington and Beijing push tech chasm wider 16 May 2019 President Trump has launched an aggressive assault on telecom giant Huawei, as China moves to strengthen cybersecurity rules. The moves will further divide the sector and complicate trade negotiations. A costly technology cold war looks here to stay.
Facebook eyes new path around China’s great wall 15 May 2019 Blocked from operating there directly, the social network is considering alternatives including minority stakes in local tech firms. Politicians in Beijing and DC may not like it. Still, Yahoo’s investment in e-commerce giant Alibaba sets a highly profitable template.
Tencent deserves its premium over Alibaba 15 May 2019 China’s tech titans face slower growth in their respective strongholds of video games and e-commerce. As they fight it out in finance, Alibaba's $150 bln affiliate, Ant, is winning. Tencent's chat app, though, gives it an overall edge that justifies a higher earnings multiple.
Japan Display gives rescuers more bargaining chips 15 May 2019 The troubled Apple supplier announced worse-than-expected results and is also planning layoffs. Last-minute financial hiccups helped Foxconn get a better deal for Sharp. The Chinese-Taiwanese group readying a $730 mln capital injection has been handed an excuse to haggle harder.
Coal bears marks of Beijing’s policy smudges 15 May 2019 China is moving away from the smoke stack, but imports of the black stuff rose 14% in April. That’s deceptive: it’s a fuel caught in transition, between demand for blue skies and blue-collar jobs. Domestic supply will rise, but long-term, foreign purchases are likely to fall.