Globalization gives new lease on life to Fortune 9 Nov 2018 Meredith is selling the business magazine to a Thai executive for $150 mln. Chatchaval Jiaravanon reckons its rankings, CEO profiles and mover-and-shaker events will play well in Asia. It’s an ironic twist for the U.S. publication with Beijing and Washington fighting a trade war.
Richemont’s Alibaba tie-up can’t come soon enough 9 Nov 2018 The luxury watchmaker’s sales growth is lower than where it was, and where rivals are. An obvious way to expand is to hike online sales. Teaming up with the Chinese digital giant would give Richemont a greater chance of parity with European luxury peers.
Nissan’s U.S. worries go beyond possible tariffs 9 Nov 2018 The $38 bln auto giant had another disappointing quarter as U.S. and European sales slid further. Its bottom line was salvaged by growth in China, strength that may not last. Most carmakers fear trade barriers, but Nissan also needs to design cars Americans want to buy.
SoftBank investment lines get blurrier at edges 9 Nov 2018 The nearly $100 bln Vision Fund held 38 stakes at the end of September, but some of the biggest and best-known, like Uber and Didi, weren’t among them. Though they may be transferred by SoftBank later, how investors can plan for that isn’t clear. It’s an uncomfortable blind spot.
Trade war ushers in the compartmentalized economy 8 Nov 2018 Beijing and Washington’s conscious uncoupling could unravel decades-old commercial ties. That doesn’t mean the rest of the world has to choose sides. Companies like electronics maker Philips are mulling how to take advantage of both markets. Business can continue, at a cost.
Hadas: Central bankers stuck between two myths 8 Nov 2018 Monetary authorities dream of a neutral technocracy though their jobs are inherently political. Politicians from the U.S. to India fantasise about exerting more monetary control, but wild policies quickly turn toxic. The uncomfortable status quo may be the least bad arrangement.
New Tesla chair will have to get tougher 8 Nov 2018 Robyn Denholm, CFO at Aussie telco Telstra, is moving from her boardroom seat at the $60 bln electric-car maker to the head of the table to oversee erratic CEO Elon Musk full-time. Splitting the top jobs is good, but Denholm has been part of a group unable to rein him in so far.
Toshiba boss channels Lou Gerstner’s IBM overhaul 8 Nov 2018 Nobuaki Kurumatani’s five-year strategic plan will slash costs, buy back stock and put a greater emphasis on selling services. That echoes the successful playbook used by another outsider, when he took over at Big Blue 25 years ago. It’s a smart, if tough, path for Toshiba.
China’s abused offshore yuan is scarred for life 8 Nov 2018 As the currency nears 7 to the dollar, its weakest since 2008, officials are attacking short-sellers exploiting gaps in overseas derivatives trade. Beijing is trying to run two exchange rate regimes. A muddled strategy is making an already difficult balance unsustainable.
Australia’s CKI veto scrambles the China message 8 Nov 2018 Canberra is set to block the $9.4 bln takeover of its biggest gas pipeline company by an arm of Hong Kong's CK Hutchison. APA shares have lagged, hinting at some risk. Timing the news to coincide with a much-vaunted trip to repair ties with Beijing, though, looks careless.
China Renaissance buyback aggravates IPO botch 7 Nov 2018 Roughly a month after a pared-down listing, the $1.3 bln investment bank and boss Fan Bao are buying a chunk of stock on the market. Companies globally are splurging on shares, and the gambit has improved prices a little. Investors and clients, though, will need more substance.
Toshiba to-do list includes shareholder shakeup 7 Nov 2018 Pushy U.S. hedge funds and other foreigners control over 70 pct of the $19 bln conglomerate after near death cost it a spot in Japan’s big indexes. Rejoining sooner than 2022 will be tough. The new strategy due on Thursday needs to be clear and bold enough to prevent an insurgency.
The Exchange: Pascal Lamy 6 Nov 2018 Few people have dedicated their careers to expanding international trade and globalism like Lamy, the former head of the WTO and EU commissioner. But rising rhetoric and increased tariffs between the U.S. and China have him worried, as he tells Rob Cox and Liam Proud in Paris.
Private equity could scratch Nestlé skin-care itch 6 Nov 2018 The KitKat maker is selling a unit specialising in psoriasis and acne treatments. Rival consumer groups may be put off by the business’s tricky mix of products and low margins. Private equity firms, already piling into the dermatology sector, would make a more logical owner.
Xi enters Shanghai in high-stakes tech IPO race 6 Nov 2018 China's leader granted the city a new board to compete with Shenzhen and Nasdaq for startups. It also will test a looser U.S.-style registration system for new listings. The steps are overdue, but officials may rue the governance risks and trading volatility they’re apt to bring.
South Korea can correct its economic missteps 6 Nov 2018 Business investment has tumbled and hiring weakened following a steep minimum wage hike and cap on working hours. Growth in the $1.5 trln export-dependent economy also is sputtering just as the U.S.-China trade war intensifies. Seoul would be wise to make some small adjustments.
U.S.-China mistrust heightens armed-conflict risk 5 Nov 2018 A near-collision between American and Chinese naval vessels in the South China Sea is a dangerous sign. Both militaries are stepping up readiness. With trade tensions high and the usual back channels dysfunctional, a clash – or worse – is a concern investors should not dismiss.
Naspers’ Vision Fund-lite carries less baggage 5 Nov 2018 The South African internet giant’s $8 bln answer to SoftBank’s mega-fund is quietly taking shape. Besides shunning the limelight, the Cape Town-based firm also lacks Masayoshi Son’s Saudi connection. Some of its early punts haven’t done too badly either.
SoftBank mobile IPO confronts Alibaba history 5 Nov 2018 Masayoshi Son’s $85 bln group quintupled profit in its latest half-year results, and the telecom unit did well ahead of a planned market debut. Listing it could help narrow a huge 60 pct discount to where analysts value SoftBank. The Alibaba flotation hasn’t helped much, though.
Xi’s $40 trln trade show talk deserves discounting 5 Nov 2018 China opened a massive expo Monday, telegraphing its appetite for foreign goods. President Xi spoke of $40 trln in imports over 15 years – a seemingly big figure that implies little growth. Given recent talk of “self-reliance”, neither the fair nor Xi’s speech will change minds.