Qantas captain flies into risky tenure territory 8 May 2019 Alan Joyce agreed to serve as CEO of the $6 bln Aussie airline for another three years. He’s young and has led an impressive turnaround over the past decade, but problems often pile up for bosses who stick around too long. Succession should be atop the Qantas board’s to-do list.
New winds may blow Korean Air successor off-course 8 May 2019 The sudden death of the carrier's patriarch has elevated scion Cho Won-tae to run the parent Hanjin conglomerate. A huge inheritance tax and restive shareholders, including the country's pension giant, threaten his grip, though. Heirs at Samsung and Hyundai face the same forces, too.
AB InBev’s debt belly needs more than fizzy growth 7 May 2019 Pricier beer helped the brewer’s first-quarter sales rise faster than expected. Yet AB InBev still has an unsightly debt pile and is battling falling volumes in key regions. An IPO of its Asian operations sooner rather than later would help investors breathe more easily.
Malaysia’s ruling coalition could use a fresh push 7 May 2019 A year after his shock win, Prime Minister Mahathir Mohamad's popularity is flagging. Change has been slow. His party has only tinkered with wasteful subsidies. Scrapping a goods and service tax also left a fiscal hole. It’ll take more to fix tainted institutions and fuel growth.
China’s Luckin Coffee roasts a rich IPO 7 May 2019 The chain is seeking to raise up to $590 mln as it races to overtake Starbucks. Luckin is growing fast, but burning cash to do so. Although its strategy diverges from that of its Seattle rival, on a comparative revenue-per-store basis the implied $4 bln valuation is high.
Casino mogul’s Cambodia cash hedges investors’ bet 7 May 2019 Boss Chen Lip Keong will use some $1.8 bln of his own money to fund half of NagaCorp’s new venture, Asia’s largest gambling resort. Competition is increasing, and both Cambodia and the industry depend heavily on China. It’s still a show of confidence that can cheer punters.
U.S.-China tension will outlast Twitter trade spat 6 May 2019 Global markets fell after Donald Trump tweeted that he’d increase tariffs on Chinese goods. Even if trade talks get back on track, other U.S. moves will damage relations. They include curbs on investment from, and tech sales to, the PRC as well as an enforcement push.
Norwasian telecom deal dials right numbers 6 May 2019 Telenor and Malaysia’s Axiata are aiming to form a regional champion with some 300 mln customers by merging their South and Southeast Asian businesses. Bigger looks better with savings worth some $5 bln expected. Kuala Lumpur might raise an eyebrow at less competition, though.
China loses leverage in battle against debt 6 May 2019 Hours after Donald Trump threatened to raise tariffs on Chinese goods, the central bank made another $40 bln available for small mainland firms to borrow. Prior easing moves helped stocks and housing more than the productive economy. This delicate balancing act looks wobbly.
Trump tariff threats shake trade deal foundations 6 May 2019 The U.S. president says he will soon hike duties on $200 bln of Chinese goods. It may well be a negotiating ploy, but has rattled markets anyway, just as both economies have steadied. Such bursts of frustration are worrying, and may make it harder for an eventual pact to stick.
India Insight: Voters could deliver a strongwoman 6 May 2019 If Narendra Modi’s BJP fails to secure enough seats in an ongoing election, a coalition of regional parties may emerge. One potential leader is West Bengal’s fiery chief, Mamata Banerjee. She has some of the prime minister’s controlling traits, but far looser purse strings.
Naruhito can give Japan’s economy a morale boost 6 May 2019 Tuesday marks the first working day of the Reiwa Era, ushered in by the accession of Naruhito, the world's only emperor. He will preside over a $5 trln engine stuck in low gear. Lacking a policy remit, he could still leverage his spiritual role to treat Japan's economic soul.
Vision Fund IPO could self-disrupt 3 May 2019 SoftBank may be mulling a float of the $100 bln tech fund. That suggests rich Gulf backers aren’t a shoo-in for a second iteration. While going public would diversify ownership, the entity might trade at a big discount. That would turn off both public and existing investors.
HSBC’s rich valuation reflects spare buyback ammo 3 May 2019 The emerging market lender’s pre-tax profit jumped a tenth in the first quarter, buoyed by a lending boom in Asia. Investors are assuming the bank will hit its 11 percent return-on-equity target in 2020. Surplus capital of $2.6 bln gives boss John Flint extra room for manoeuvre.
Macquarie can keep its edge over Wall Street 3 May 2019 The first full-year results under Shemara Wikramanayake included an impressive 18 pct return on equity. Macquarie cautions things may cool off, but commodities and infrastructure are hot, and play to its strengths. Trading at some 2.5 times book value means expectations are high.
Alibaba’s custom font plays to tech type 3 May 2019 The Chinese e-commerce titan designed Alibaba Sans to push its brand and improve legibility. Text is becoming as personalised in tech-land as accounting metrics. Apple, Netflix and Uber have bespoke characters, too. The bar on visual vanity projects has been raised.
Ditching Jakarta is worth the risk for Indonesia 3 May 2019 President Joko Widodo approved a $30 bln plan to uproot civil servants from the capital. Congestion is crippling and wealth too concentrated in a sinking city. A bold, wholesale move a la Brasilia or Canberra may be too costly, but dispersing government agencies would be a start.
Viewsroom: Apple versus Alphabet 2 May 2019 Both Silicon Valley giants are looking for the next big thing after a slowdown in their main product – iPhone sales at Apple and online ads at Alphabet. Lower expectations mean Tim Cook’s outfit has more time to act. Plus: Activist Dan Loeb puts Sony back under the microscope.
Cox: Ghosn affair shoves Japan two steps back 2 May 2019 Harsh treatment by prosecutors has amazingly elicited some sympathy for the Nissan boss. Neither greed nor running the automaker like a deity is a crime. And the presumption of guilt on other matters is unseemly. It may scare off foreign executives just as Japan Inc goes global.
Japan’s telecom upstart tests plan for disruption 2 May 2019 E-commerce group Rakuten has done well out of bets on Lyft and Pinterest. That supports its capex-light push to challenge Japan's mobile oligopoly. Reliance upended the Indian sector with a costlier, but similarly daring gamble. Hiroshi Mikitani can hope for some of that success.