Chinese drone giant DJI charts a risky flight path 22 Mar 2018 The world’s top maker of unmanned aircraft is raising money at a $15 bln valuation, Reuters says. Sales are soaring and DJI has a commanding market lead. Given drones’ data-gathering ability and military potential, though, DJI could easily hit turbulence in major foreign markets.
Viewsroom: China’s new central banker 22 Mar 2018 Yi Gang has experience working in America. Once considered a liability, that background now may be one of his greatest assets. And the mainland is courting companies to list shares locally, while China’s version of Hulu plans an IPO - in New York.
How Washington could really fix trade with China 22 Mar 2018 President Trump is rolling out tariffs and wants a $100 bln cut to the deficit. Yet Beijing’s import-substitution plans, forced tech transfers and IP policy are the real problems. By ditching them China would justify a truce, and reinforce its claim to free-trade leadership.
Hadas: Taking on the Chinese new world order 21 Mar 2018 The People’s Republic lacks the political and cultural appeal to supplant the U.S. as all-round hegemon. Even so, it could soon set many global economic standards. The right response is cognitive empathy and careful choice of battles. Western countries too often choose wrong.
Vivendi discovers quitters can be winners 21 Mar 2018 Vincent Bolloré’s media group has made a capital gain of 153 pct by selling its stake in Ubisoft, which he had long coveted. The restraint is laudable. If only he could exit as easily from an investment in Telecom Italia, where he is stuck with a paper loss and angry investors.
Tencent wisely prepares for post-“Kings” era 21 Mar 2018 Hits like "Honour of Kings" powered another blockbuster quarter for the $565 bln web titan. Yet Tencent's incredible run in online games may tail off, as overall market growth in China slows. Pushing into videos and music is vital, despite high upfront costs and distant returns.
Daimler’s creepy Chinese suitor scrubs up well 21 Mar 2018 Geely’s earnings doubled to $1.7 billion in 2017, as its SUVs flew off the lots. Chairman Li Shufu’s surprise stake-building ruffled feathers in Germany. But Li’s company is trouncing Daimler’s current local partner, BAIC. That might in time prompt a rethink in Stuttgart.
Asia’s banks leave room for debt funds to thrive 21 Mar 2018 Traditional lenders neglect many smaller borrowers in the region. But while they are weighed down by bad loans and tough regulation, that creates a gap for new providers. Private debt funds are benefiting from limited competition and better bankruptcy regimes too.
James Packer’s exit deals Crown a better hand 21 Mar 2018 The Australian billionaire has resigned from the board of his casino empire again, this time for health reasons. He leaves a group still reeling from a Chinese crackdown that left staff in prison and prompted a costly global retreat. The path to recovery is clearer without him.
Foreign banks find silver lining to U.S. clouds 20 Mar 2018 Congress isn’t handing the same regulatory relief to the stateside businesses of HSBC and others as it is to midsize domestic lenders. But Washington’s shift to more tailored regulations for the industry should at least give embattled foreign banks a bit of a break.
Mile-high stake swap could feed Air India bid 20 Mar 2018 Jet Airways may be interested in the soon-to-be privatised national carrier. However, Naresh Goyal’s airline would need serious financial help to make an offer fly. Abu Dhabi’s Etihad may need to make room for a new large strategic investor.
China’s regulatory mega-merger howls for synergies 20 Mar 2018 Uniting banking and insurance oversight while consolidating the work of other ministries should relieve burdens Beijing puts on private enterprise. Big layoffs would be an important next step for the new regime. Idle paper-pushers have grown too fond of mindless crackdowns.
D.C. subway could ride Hong Kong’s MTR 20 Mar 2018 The Washington Metro's equipment and safety woes are a smoking symbol of U.S. infrastructure ineptitude. Market-based fixes would be wise. Other cities have hired Hong Kong's mass-transit provider for help, but its property and punctuality playbook also may be replicable.
Alibaba presses its advantage in Southeast Asia 19 Mar 2018 The e-commerce giant is pumping $2 bln more into regional subsidiary Lazada, and replacing the group’s founder-CEO with Alibaba veteran Lucy Peng. Armed with her fintech expertise, Lazada can use mobile payments to entrench its regional lead over rivals Amazon, JD and Sea.
China Literature results could use more drama 19 Mar 2018 Tencent's $10 bln e-books arm reported strong debut numbers as a public company, with sales up 60 pct. But user growth is slowing, and hype over turning historical novels and kung fu epics into hit movies has yet to deliver. A lofty valuation requires a bit more excitement.
China’s new central banker is a gesture to U.S. 19 Mar 2018 Vice Governor Yi Gang was a long shot due to prejudice against "sea turtles", or Chinese with overseas experience. But as well as a reformer, Beijing wanted someone who could reassure foreign investors. Yi is both. The financial bureaucracy needs more like him.
Viewsroom: How long should a leader lead? 16 Mar 2018 China’s President Xi Jinping can now stay in power for life. Goldman Sachs CEO Lloyd Blankfein seems ready to retire after 12 years at the top. Yet five years may be the ideal length of service. Breakingviews columnists discuss the limitations to limitless rule.
Review: The pitfalls of managing by measurement 16 Mar 2018 Excessive dependence on quantitative indicators has long caused trouble. Yet as Jerry Muller shows in “The Tyranny of Metrics”, a fixation with targets still distorts the behaviour of teachers, doctors and executives. Though data matters, it’s no substitute for judgment.
Li Ka-shing’s exit ushers in new era for tycoons 16 Mar 2018 The Hong Kong magnate built a property-to-telecoms empire. At 89, Li retires as the city faces economic and political uncertainty, while protectionism globally is on the rise. For his son and successor, Victor Li, replicating the returns his father delivered will be tough going.
China’s corporate-exposé programme jumps the shark 16 Mar 2018 A popular consumer-rights show fell flat targeting VW again and small bike-sharing startups. State broadcaster CCTV's yearly investigations once scared CEOs and even knocked their share prices. After helping deliver the message on quality control, "3.15" is no longer must-see TV.