Self-driving trucks expose Chinese tech gap 15 Mar 2019 Mainland autonomous truck startup TuSimple is hitting the U.S. road, challenging the likes of Waymo and Volvo. Despite support from Beijing, policy contradictions have reduced China’s attractiveness to its own companies, making it a laggard in the self-driving race.
Viewsroom: Boeing’s struggles 14 Mar 2019 The U.S. aircraft maker is facing a crisis after a second crash involving an updated version of its workhorse 737 jet. There’s a financial hit to Boeing from countries grounding the plane; but there are geopolitical implications, too. Plus: China tries to stimulate its economy.
Botched Korean IPO puts buyout shop in a bind 14 Mar 2019 Weak demand forced MBK to pull a $1.5 bln listing of hypermarket buildings owned by Homeplus, which the private equity firm bought from Tesco. Now the retail chain has to repay a buyout loan, but banks might not help. While embarrassing, an asset sale could be the only option.
Pinduoduo offers New York a Shanghai bargain 14 Mar 2019 The $29 bln shopping app is giving investors a taste of Chinese tech: promise, growth and volatility. Shares fell over 17 pct after it spent far more than expected in 2018 to lure and retain customers. Still, the experience of rivals like Alibaba suggests better times ahead.
China’s tax collectors could yet blunt stimulus 14 Mar 2019 Officials say Beijing’s $300 bln levy reduction this year sets a world record. Yet despite a big slash last year, the government’s total take kept rising. Better enforcement could partly offset lower rates, making it harder to predict just how much cuts might juice growth.
Belated 737 action marks U.S. soft power erosion 13 Mar 2019 The FAA finally followed many other countries’ watchdogs in grounding Boeing’s 737 MAX aircraft. Usually, the U.S. regulator shows the way. Washington’s government by autopilot and perceived capture by companies has made even allies increasingly skeptical of its leadership.
Ping An stock repurchase comes with Beijing twist 13 Mar 2019 China’s biggest insurer plans to buy up to $1.5 billion of its Shanghai shares. The company, which has a Hong Kong listing too, says it’s undervalued, but the deal also stems from official efforts to pep up mainland markets. Shareholders benefit, but policy winds blow both ways.
China’s Starbucks rival pushes its luck 13 Mar 2019 Lu Zhengyao, Luckin Coffee’s chairman, wants a $200 mln personal loan in exchange for a role on the upcoming IPO, Reuters reports. Such hubris suggests the delivery-focused chain, which faces intensifying competition, is overheating. Investors should beware getting scalded.
Korean pop music can dance past boy-band blues 13 Mar 2019 A prostitution scandal rocked hit group Big Bang and sparked a stock selloff for agencies in the $5 bln industry. It's a reminder of how tricky star-driven investments can be. As streaming services like Spotify help export K-pop, though, the companies can hit high notes again.
Renault-Nissan love-in swerves main bumps in road 12 Mar 2019 The French carmaker has agreed its chairman will no longer chair its Japanese partner. That’s a step forward from the Carlos Ghosn era. But mutual talk of equality is no substitute for solving the alliance’s fundamental problems – not least its suboptimal cross-shareholdings.
Blackstone’s round trip brightens HNA attractions 12 Mar 2019 The private equity shop is buying back control of a Hong Kong construction company it sold to the Chinese group in 2016. The $900 mln price tag belies a slug of cash that comes with it. That makes the valuation inviting and may increase interest in HNA’s sprawling portfolio.
Hype trumps reality in Ambani’s shopping empire 12 Mar 2019 Reliance Retail is India’s top brick-and-mortar vendor, a fast-growing conglomerate within the tycoon’s $118 bln energy-to-mobile giant. Now it is emerging as the top threat to Amazon and Walmart’s local ambitions. Its numbers, though, are a mixed bag.
The Exchange: Out of the desert, into a trade war 12 Mar 2019 Weijian Shan spent his youth labouring in the Gobi Desert. Now he runs $30 bln at PAG, after stints at TPG and the World Bank. One of the first Chinese to study in America after the Cultural Revolution, Shan discusses trade tensions, and the economic risk of historical amnesia.
Meituan Dianping drives itself to distraction 12 Mar 2019 The $42 bln Chinese super-app operator grew fourth-quarter sales by a robust 89 pct. Meituan’s entire valuation is reflected in the strength of its food delivery unit against Alibaba-owned Ele.me. That raises fresh questions about costly ride-hailing and bike-sharing diversions.
Boeing investors fear worst from 737 tragedy 11 Mar 2019 The aerospace giant’s shares lost over $25 bln in value after the second crash of its newest model in six months. That overstates the likely financial impact even if U.S. regulators copy China and ground the plane. The real threat is creating an opening for a Chinese competitor.
Chinese stock xenophobia is a problem for MSCI 11 Mar 2019 After expanding the weight of A-shares in its benchmarks, the index provider had to drop a popular tech stock thanks to policies capping foreign shareholdings. If it happens too often, MSCI indexes will be less representative of demand. It’s a bad look for China’s market opening.
Cambodia’s casino king faces new poker hands 11 Mar 2019 Malaysian tycoon Chen Lip Keong is enjoying an extraordinary monopoly in Phnom Penh: his $6 billion flagship group, NagaCorp, grew net profit by more than 50 percent last year. But new rules and an influx of Chinese tourists will inspire upstarts to try their luck too.
Review: Gig-economy firms tread precarious path 8 Mar 2019 The likes of Uber tapped casualised labour to become global giants. They have created a “precariat” class of workers, open to exploitation and abuse. Colin Crouch’s “Will the Gig Economy Prevail?” offers a manifesto for a benign alternative, but underplays technological shifts.
Hong Kong bank showcases the XX factor 8 Mar 2019 As International Women’s Day brings more sad stats about corporate diversity, $46 bln Hang Seng Bank can stand proud. Its shares have outperformed under three consecutive female CEOs and a cohort of female directors. It sets a powerful example for companies worldwide to follow.
Viewsroom: Hostile gold diggers 7 Mar 2019 The three-way takeover fight involving Newmont, Barrick Gold and Goldcorp is full of aggression and big egos. Breakingviews columnists unpick the gold-mining M&A frenzy and debate whether cooler heads can prevail. Plus: China telecom giant Huawei has a public-relations challenge.