Huawei’s hang-ups open 5G line for Samsung 31 Aug 2018 Japan may soon echo U.S. and Australian restrictions on the Chinese telecom equipment maker and peer ZTE. That should help South Korea’s $280 bln titan make a move in the markets. Nokia and Ericsson will challenge for share, too, but Samsung’s heft and stamina give it an edge.
Australia’s $11 bln telco deal dials up high hopes 30 Aug 2018 TPG Telecom and the Vodafone Hutchison joint venture are coming together. The merger reduces chances of a price war and the market is implying hefty synergies can be achieved. It should ease Vodafone’s exit and even rival Telstra may come out ahead.
Chinese battery makers can win EV recycling race 30 Aug 2018 Metals recovered from spent car cells could be worth more than $20 bln a year within a decade. Western chemicals groups like Umicore already profit from waste. But with half of the world’s electric cars sold in the People’s Republic, locals like CATL and BYD can pull ahead.
Market dominance defends China’s Didi from murder 29 Aug 2018 The $56 bln ride-hailing app is in big trouble after a driver killed a female passenger. With #MeToo gaining traction in China and an IPO in the pipe, the timing is terrible. Didi’s near-monopoly protects it from a shutdown, but tighter regulation could punish profitability.
Yum China will struggle to get a fancier takeout 29 Aug 2018 The U.S.-listed KFC operator has rejected a buyout bid worth nearly $18 bln from a group led by Hillhouse. The deal already builds in supersized prospects and a hefty debt burden. A sweetened offer, given hints of weaker spending ahead, would be demanding.
China’s bankers have one too many balls in the air 29 Aug 2018 Loan officers at mid-sized lenders are torn between conflicting goals. Banks like $110 bln China Merchants are on the hook to fund infrastructure, cut bad loans and make a profit too. First-half earnings show that's pushing them into riskier consumer credit, even as growth cools.
Opioids and trade war create toxic cocktail 28 Aug 2018 An inflow of lethal fentanyl from China helped America record nearly 72,000 fatal drug overdoses last year. A breakdown of trust over tariffs may make it harder to cooperate over this dangerous import, and fuel unhelpful arguments about whether supply or demand is to blame.
UK-Africa trade is tiny plaster for Brexit wounds 28 Aug 2018 Prime Minister Theresa May hopes deeper ties with the continent will help cushion the blow of leaving the EU. But UK trade with sub-Saharan Africa is less than 3 pct of what it exchanges with Europe. With Nigeria and South Africa in the doldrums, prospects for growth look slim.
Consumer giants have bigger problems than Turkey 28 Aug 2018 Unilever and Nestlé can resist a crisis in Turkey, which accounts for little of their revenue. But both will suffer if troubles spread across emerging markets, which account for about half of group sales. All the more so since Western shoppers are unlikely to take up the slack.
India’s Jet can redeem some air miles to ease pain 28 Aug 2018 After a quarterly net loss of $190 million, the country’s second-largest airline badly needs cash. It has laid out a list of planned fixes, including somehow tapping its loyalty programme. That won't solve its engine trouble, but may help smooth out some of the turbulence.
Gig economy throws wrench into China labour policy 28 Aug 2018 App-based jobs are becoming controversial in the People's Republic, too. Factory strikes may be waning, but reports of worker protests involving startups like Meituan and Didi are rising. That's leaving Beijing stuck between two priorities: social stability and tech innovation.
Korean chaebol overhaul runs into economic reality 28 Aug 2018 Seoul’s antitrust chief unveiled new rules to rein in powerful family conglomerates. Slowing growth, however, has made the likes of Samsung even more important to the country’s jobs plight. That means governance reform probably will wind up weaker than originally anticipated.
Berkshire’s India deal is so wrong it’s right 27 Aug 2018 Warren Buffett’s company is taking a small stake in digital-payments firm Paytm. Indian tech doesn’t fit the Omaha sage’s playbook, but his outfit has $110 bln in cash and holdings like Kraft Heinz are flatlining. Letting his lieutenants place some bets on the future makes sense.
China Biologic suffers contaminated infusion 27 Aug 2018 The plasma-products maker rejected two buyout offers, including one worth $3.9 bln led by its former boss, in favour of a dilutive share sale at a discount to both. Investors are stuck with fuzzy maths and poor governance that show why China Biologic would be better off private.
China’s oil majors risk wasting a good trade war 27 Aug 2018 Earnings are gushing at energy giants including $210 bln PetroChina. They are benefitting from Washington’s belligerence, which has driven up crude prices and should open opportunities in Iran. The windfall, though, masks the need for extra investment, cost cuts and other reform.
For a Republican, McCain was a financial maverick 26 Aug 2018 The Arizona senator, who died Saturday, was famous for his independent streak. Last year he helped block the repeal of Obamacare. He refused to toe the party line on big finance, too, often working with Democrats – including on reining Wall Street after the financial crisis.
Mom and pop put a face on U.S. trade folly 24 Aug 2018 Sellers of wedding dresses, lawn sweepers and bike helmets have asked U.S. officials to drop tariffs on $200 bln of Chinese imports. They show how much lower-tech production has moved abroad, taking American jobs, but also how that has created new ones and saved consumers money.
Australian politicians play with economic fire 24 Aug 2018 Malcolm Turnbull has been forced out, ushering in the country's sixth prime minister in a decade. Political turmoil contrasts with 27 years of unbroken growth. But reforms are hard to implement and voters are disgruntled. The economy’s immunity to upheaval in Canberra is waning.
More AWOL China bosses flag unique key-man risks 24 Aug 2018 Casino operator Landing has lost half its market value amid news that its chairman is unreachable. It’s the second such case in three days. Overdependence on top executives continues to plague many Chinese companies, and they’re exposed to hazards uncommon in other markets.
U.S.-China trade talks stumble on biggest block 24 Aug 2018 Mid-level negotiations yielded no breakthroughs as tariffs hit $16 bln of Chinese goods. The United States wants reforms to industrial policy that would fundamentally alter Beijing’s development model, and might even rewire how it runs the economy. It will struggle to deliver.