Bold Chinese stimulus will have to wait 21 Jan 2019 GDP grew 6.4 pct in the fourth quarter, down from 6.5 pct in Q3. The economy is cooling faster than Beijing wants, but not fast enough to warrant the aggressive monetary and fiscal steps some bureaucrats, and many investors, would like. For now, expect more talk than action.
TPG takes fresh stab at China buyout quandary 21 Jan 2019 After a long dry spell on the mainland, the private equity firm co-led by Jim Coulter will now work with CICC to pursue deals. Overseas funds have struggled to find targets, but also generate better returns than local rivals. It makes a partnership model worth testing in China.
Fortnite outplays media titans in a battle royale 18 Jan 2019 The video game may have raked in as much as $2.4 bln in sales last year, more than any 2018 Hollywood blockbuster. Now Netflix says it is threatened too. Success comes from mass appeal: both young and old gamers are hooked. Streaming giants and movie outfits are right to be alarmed.
Breakdown: Clipping Huawei’s global 5G ambitions 18 Jan 2019 China's telecoms-equipment giant is in crisis. Its CFO has been arrested over alleged sanctions violations, and a security backlash has intensified in Europe. As the race to dominate next-generation wireless technology speeds up, Huawei's woes will have costly ramifications.
Viewsroom: China’s slowdown is not created equal 17 Jan 2019 People in the Middle Kingdom are buying fewer iPhones and cars, but Nike and others are chugging away nicely. Meanwhile, India’s struggling rural farmers are a force too big to ignore in this year’s general election. Plus: The Detroit auto show reflects the industry’s gloom.
Size matters less than gold miners think 17 Jan 2019 Newmont's $10 bln Goldcorp purchase creates a behemoth, and the U.S. miner has talked up options from extra assets, plus steady output and dividends. But its investors are right to be sceptical. Management will have to over-deliver on synergies to secure them a good return.
TSMC’s iPhone hangup can end well 17 Jan 2019 Taiwan's $183 bln chipmaker expects revenue to fall sharply this quarter. Weak demand for mobile handsets is one problem. But the pain may be short-lived. TSMC’s cutting-edge semiconductors will help to win customers in AI and 5G. That should ease its dependence on Apple.
Stalling Jet Airways puts Narendra Modi in a bind 17 Jan 2019 To save the private carrier, India’s premier may have to choose between relaxing foreign ownership rules for Abu Dhabi’s Etihad and letting state banks take a hit. Both options touch the sorest points of Indian finance: it's an awkward dilemma in the run-up to a general election.
Hadas: Governance gold would help the Olympics 17 Jan 2019 A new probe into how Tokyo won the 2020 summer games feels sadly familiar. Persistent wrongdoing at executive and athletic levels arises from a toxic mix of money, symbolism and hypocrisy. That can’t be changed, but the Olympic “faster, higher, stronger” motto offers guidance.
Miners can close the confidence gap in 2019 16 Jan 2019 Stock markets point to a rough year for diggers, valuing each dollar of expected cash at a stubbornly hefty discount. Investors are fretting about a Chinese slowdown and don’t trust cashed-up bosses at Rio, BHP and the like to restrain themselves. The reality may be brighter.
Huawei hits limits of China’s transparency toolkit 16 Jan 2019 The embattled tech giant’s founder Ren Zhengfei gave a rare interview to distance itself from the state. But as HNA found, traditional means to demonstrate an innocent agenda are no longer effective for China Inc. New solutions are needed to allay Western suspicions of Beijing.
Waning China FDI overshadows trade worries 15 Jan 2019 Foreign investment into mainland businesses grew less than 1 pct in yuan terms last year, to $131 bln. Flows to North America and Europe also tanked. Deepening suspicions are as much to blame as weaker demand. This retreat poses longer-term concerns than imports and exports.
China can give stock buying idea a wide berth 15 Jan 2019 Beijing’s financiers are abuzz with debate about whether the central bank should buy equities as part of official efforts to help a slowing economy. Drawbacks would outweigh limited benefits. Luckily there is a better way to channel money to where it would do growth more good.
L’Occitane picks odd time to bet on British beauty 14 Jan 2019 The Hong Kong-listed soap and hand cream brand has snapped up luxury skincare group Elemis for $900 mln in cash. At over 22 times last year’s EBITDA, the price looks a tad rich. The acquisition will also boost L’Occitane’s exposure to the UK at a time of economic uncertainty.
Temasek gives CapitaLand a new economy makeover 14 Jan 2019 The state investor will sell a real estate unit to the Singapore property giant for $4.4 bln. Temasek gets a majority stake in the heavyweight, which it already part-owns. With more exposure to e-commerce and developed markets, CapitaLand gets scale and downside protection.
Refocused Olympus provides a flash of hope 14 Jan 2019 As the $13 bln Japanese company turns 100, it is inviting pushy investor ValueAct onto the board, slashing costs and zooming in further on endoscopes and other medical kit. Changing the corporate culture has been a slog, though. A weak camera business also blurs the picture.
AB InBev’s Asia sale needs breathalyser test 14 Jan 2019 The Belgian brewer is said to be mulling an IPO of its Asian unit. The region is a fast-growing jewel in the drinks giant’s crown, yet it faces stiff competition in China, and still struggles in India and Southeast Asia. The mooted $70 bln valuation will be tough to keep down.
Xiaomi’s grand plan gets market reckoning 11 Jan 2019 After Apple warned of weakness in China, Lei Jun’s $33 bln smartphone maker lost a quarter of its market value. The end of a post-IPO freeze on share sales also hurt. It’s time for Xiaomi to tone down “new species” talk and keep proving it can sell more handsets internationally.
Chinese mystery beauty queen is ripe for makeover 11 Jan 2019 Pechoin is giving global cosmetics brands a run for their money in China’s $30 bln skincare market. Its revival from state-owned obscurity is impressive; it did so without outside investors or partners. As the economy cools, however, it could make an attractive acquisition target.
Viewsroom: High anxiety hits SoftBank’s vision 10 Jan 2019 Rising rates, lower oil prices, wobbly markets and the backlash against Saudi Arabia could put Masa Son’s $97 bln fund on the spot this year. Elsewhere, some Indian tech startups may take the world by storm. Plus, Breakingviews picks three indicators to monitor the world economy.