China property giants face call of tech sirens 27 Mar 2019 The $45 bln Evergrande and peers reported bumper earnings for last year despite slowing overall sales. Home prices are rising, debt is stabilising and policy seems friendlier. Shareholders could relax, were developers not also plowing into electric cars and robots.
Huawei’s charm offensive scores only half-points 27 Mar 2019 The Chinese telecom champion is engaging in an unprecedented public relations push, battling U.S. allegations of spying, IP theft and opacity. Its arguments about security have some merit, but the campaign might convince more sceptics if Beijing wasn't trying so hard to help.
China’s art market paints a clearer picture 27 Mar 2019 Sales in the mainland and beyond dipped in 2018, to $13 bln. There was still exuberance: a monumental abstract triptych sold for a record $65 mln. But the mood ahead of Hong Kong’s Art Basel is subdued. For buyers, that may be good news, auguring less volatility and lower prices.
Rare-earth bid reverts Aussie conglomerate to type 26 Mar 2019 After spinning off supermarkets and selling coal, $27 bln Wesfarmers is back adding to its sprawl with a $1.1 bln offer to buy Lynas. The attraction of owning the only major producer of speciality ingredients outside China is clear, but the financial and strategic cases less so.
Chaotic Thai result is near investors’ worst case 26 Mar 2019 A vote to end direct military rule has slid into confusion, with accusations of cheating and both sides claiming they can form a government. A clear outcome may be weeks away. With foreign funds already ditching shares, that's a poor prospect for a cooling $460 bln economy.
Hostile Indian IT bid does not compute 26 Mar 2019 Larsen & Toubro’s $2 bln tilt offers a measly premium for outsourcer Mindtree. The buyer’s vow to keep the outfit separate to its existing IT businesses seems odd, and deprives the target of a higher-performing parent. A sweeter price and a clearer plan could seal a better deal.
The Exchange: Fomenting rugby fever in Hong Kong 26 Mar 2019 As the city braces for the annual Sevens showdown, organiser Robbie McRobbie tells Breakingviews what the event reveals about its host. From fancy dress and fancier corporate suites, to a real estate dilemma, the sports extravaganza tracks the financial hub’s health and wealth.
“Japanisation” of ECB will blight Europe’s banks 25 Mar 2019 Weak economic activity is raising the chances of the European Central Bank copying its Japanese counterpart, which has kept rates ultra-low for two decades and adopted ever more radical measures to boost inflation. Lenders in Japan show European peers the heavy toll that takes.
Chinese champions need a harder dividend squeeze 25 Mar 2019 Beijing wants to help balance its books by making stingy state companies hand over more of the $500 bln they earned last year to shareholders. It’s a good idea, but the economic effect will be modest until deeper reforms are put back on the table.
Cleaning up Hong Kong’s small caps is dirty work 22 Mar 2019 Scandals and high fees doom over 1,000 companies listed in the city to low valuations and feeble trade. The exchange may cut transaction costs to boost turnover, but that won’t solve deeper issues. Delisting would be a better solution for many, even if the process will be grimy.
Australia can defy economic gravity for longer 22 Mar 2019 After nearly three decades of growth Down Under, there are fresh signs of sputtering. Fourth-quarter GDP grew just 0.2 pct, house prices are falling and wages only inching up. There are reasons for optimism, though. Canberra’s spending power, for one, can keep momentum going.
China’s majors fill up on gas at the right time 22 Mar 2019 PetroChina’s losses on gas imports swelled to nearly $4 bln in 2018, thanks to low domestic rates. Yet China’s oil giants are preparing to buy more LNG from U.S. firms. That aids the trade cause. More importantly, it may help lock in supply before a forecast shortfall.
Viewsroom: German bank M&A’s questionable logic 21 Mar 2019 Putting Deutsche and Commerz together might create a national banking champion. A more likely outcome, though, would be a poorly performing behemoth. Meanwhile, Volkswagen boss Herbert Diess commits the mother of all CEO gaffes. Plus: sizing up a Chinese housing unicorn.
Tencent needs new obsession to replace video games 21 Mar 2019 The web giant’s fourth-quarter earnings slumped by nearly a third to $2 bln as Chinese curbs on mobile games took effect. Bets on payments and cloud computing have yet to pay off, and Tencent’s M&A record is patchy. Investors deserve a clearer idea of where it’s headed next.
China’s carriers dig deep for world-beating 5G 21 Mar 2019 The mobile giants have hinted at how much they will spend on the initial buildout of next-generation technology, outlining the first real plans for a potential $140 bln project. Costs look manageable for now, but expensive calls from Beijing remain a worry.
Hong Kong fumbles its China extradition fix 21 Mar 2019 The city may exclude white-collar crimes from a mooted deal to exchange suspects with the mainland, to assuage the business community’s concerns. Unfortunately, such an awkward compromise would only confirm the tension between the financial hub’s needs and Beijing’s ambitions.
Thailand’s vote may solve just one problem 21 Mar 2019 A poll on Sunday will end five years of military rule. The best outcome would be an uncontested one, even if the junta leader stays on. A democracy of sorts could well encourage some private investment, but none of the likely winners seem ready to tackle a sclerotic economy.
Kuala Lumpur can give up Malaysia Airlines 21 Mar 2019 The flag carrier has been losing cash for years. Now Premier Mahathir Mohamad is asking if it should fly at all. State-meddling has hampered a turnaround and there’s too much local capacity. Folding the airline would show that his government is ready to rein in the state.
Citic and CLSA will survive boss departure 20 Mar 2019 The Hong Kong brokerage’s CEO is quitting, shortly after its chairman left. The moves have led to whispers of a culture clash with China’s Citic Securities, which bought CLSA for $1.3 bln in 2013. Bank mergers are always a challenge. Still, it’s too early to write this one off.
Rivals can fly around Google’s game cloud 20 Mar 2019 The U.S. web giant is stepping into gaming with a browser-based service. Console makers Nintendo and Sony lost a combined $3 bln of value on the news. Google's scale intimidates, but victory depends on exclusive titles that can out-drive Super Mario, not just lots of servers.