Toshiba’s big early miss invites investor revolt 13 Feb 2019 The Japanese electronics giant has cut its operating profit forecast by two-thirds barely three months after giving guidance. That doesn’t inspire confidence it can deliver on its five-year strategic plan. Toshiba’s large cohort of foreign shareholders could get more demanding.
Chinese banks resist maxing out credit cards 13 Feb 2019 Lenders have issued more than 650 mln of them to local consumers, facilitating debt-fueled shopping sprees. It’s a lucrative but risky supplement to other types of loans, and some banks are pulling back. That’s negative for economic stimulus, but financially prudent.
Uber steers around its Asian innovation conundrum 13 Feb 2019 After exits from China and Southeast Asia, the ride-hailing giant's eastern footprint hinges on India and promising spots, like Taiwan. Emerging market problems force a rapid pace of change. Safety buttons and a "lite" app are encouraging, but local rivals are moving faster.
Nissan’s post-Ghosn journey starts in reverse 12 Feb 2019 The $33 bln Japanese carmaker cut its operating profit forecast in the first results posted since ousting Chairman Carlos Ghosn. Declining profitability underscores the importance of deeper cost-sharing with partner Renault. But alliance tensions suggest pessimism is warranted.
Pinduoduo’s bid for calm has its limits 12 Feb 2019 Even by Chinese tech company standards, the $31 bln e-commerce outfit has had a volatile start to public life. A $1 bln follow-on will up the float and help to ease wild price swings. But ballooning losses, competition with Alibaba, and legal woes will continue to create a stir.
China could pay dearly for winning the 5G race 12 Feb 2019 The U.S. Secretary of State is in Europe lobbying politicians to ditch Huawei network products. Beijing is spending $400 bln trying to gain an edge in the next- generation telecoms, benefitting local champions. But if exports get stymied, China could be stuck with a hefty bill.
The Exchange: Huawei’s U.S. security chief 11 Feb 2019 Andy Purdy, who previously worked in academia and for the U.S. government, talks about the geopolitical edge to allegations about Beijing’s influence at Chinese tech group Huawei, and how communications equipment needs global standards and better testing across the board.
Japan’s foreign invaders could use domestic allies 11 Feb 2019 From sumo rings to convenience stores to boardrooms, immigrants are changing the way the world’s third-largest economy works. Their presence is politically awkward, but demographically essential. Policies that internationalise Japanese citizens would help ease the transition.
India’s tech rules are taking on a Chinese quality 11 Feb 2019 New Delhi's plan to compel the likes of Facebook and Google to police their content threatens free speech. Coming after edicts that limit foreign e-commerce giants, there is a touch of the People's Republic that will worry global players relying on the subcontinent for growth.
U.S. auto tariffs may force trade-war ceasefire 8 Feb 2019 Talks with Europe and Japan are not going well, increasing the odds of the White House taxing their vehicle imports. The possible $42 bln sales hit and 200,000 lost jobs would hurt voters in a way Trump’s overall tariff tirade hasn’t. That may finally prompt lawmakers to wake up.
Sony’s record share splurge misses the big picture 8 Feb 2019 Fresh from reporting lacklustre earnings, the electronics giant says it will buy back nearly $1 bln worth of stock. It’s a sign of boss Kenichiro Yoshida’s confidence. To boost longer-term returns, though, he needs to convince investors a much-needed overhaul is also underway.
China’s property giants have a decent foundation 8 Feb 2019 Evergrande and other developers are tapping pricey offshore markets to refinance $98 bln of debt maturing this year. Sales are slow, but prices are still rising fast enough for comfort. Things will look even better if officials ease curbs as part of an economic stimulus package.
Viewsroom: U.S. water crisis may evaporate wealth 7 Feb 2019 Overuse and climate change are sapping the Colorado river, source of a fifth of U.S. GDP and at least $1.3 trln of market value. The feds and basin states are struggling to adapt, but investors pay little heed. Plus, can India Prime Minister Modi’s budget help him win re-election?
L’Oréal can save up to buy out Nestlé 7 Feb 2019 Buoyant demand from Chinese shoppers boosted the cosmetics giant’s sales and margins in 2018. The Lancôme owner’s growing 2.8 billion euro net cash pile may seem an unnecessary indulgence. But it will come in handy if Nestlé gives in to pressure to reduce its 23 pct stake.
India’s rate cut fuels fears of a yes-man governor 7 Feb 2019 A surprise move to trim the cost of borrowing, less than a week after an expansionary budget, will raise concerns that freshly appointed Shaktikanta Das is dancing to New Delhi’s tune. An election, after all, is months away. Lacklustre price increases, though, provide some cover.
Hadas: GDP forecasters need to lower their sights 6 Feb 2019 Global growth predictions for 2019 are sinking. There are one-offs, like trade tensions, but larger trends are also at play. Demographics, undercounted new technological gains and China’s middle-income blues all drag down the numbers. The GDP errors carry big risks for debtors.
SoftBank’s Einstein pitch fails relativity test 6 Feb 2019 Masayoshi Son invoked the Nobel Prize winner’s theories to argue the Japanese group is worth $110 bln more. But adjust his sums for low liquidity and the possibility of squandered cash, and the black hole is small. Massive objects like the Vision Fund distort the laws of physics.
Trump World Bank pick would be fox in the henhouse 5 Feb 2019 The U.S. president is set to nominate David Malpass to lead the global lender. He’s skeptical of multilateralism and of closer ties to China. A challenger for the job – usually America’s choice – hasn’t yet emerged. Some World Bank priorities, like climate change, could fade.
Central banks’ gold fever is anything but reckless 5 Feb 2019 Their 2018 purchases of the yellow metal were the second-highest on record and up nearly three-quarters from a year ago. But this isn’t a speculative punt on prices rising. Instead, it’s a logical precaution against rival currencies and U.S. self-harm eroding dollar dominance.
Wirecard shows fintech stars share banking ills 4 Feb 2019 The payments group denied an FT report alleging false accounting. Yet shares are down 25 pct since last week. Soothing investors will mean bulking up in compliance and boosting transparency. They’re the kind of problems associated with rickety banks, not disruptors.