Asia-Pacific

Geely unit IPO will test geopolitical speed limit

21 Nov 2023

EV maker Zeekr, owned by China’s largest auto group, may raise almost $500 mln by going public in New York. Sales of cars, batteries and research are zooming at home, but plans to list and expand abroad look ambitious unless Beijing’s tensions with Washington and Brussels abate.

“Ex-Japan” title may take a final bow with Goldman

21 Nov 2023

The retirement of Japan President Masanori Mochida gives the US firm the option to follow its rivals and have his successor report into the Asia CEO. After a long lull, Japan’s markets are hot. But shape-shifting foreign banks may opt to bring the country into the regional fold.

World Bank and kin head for a $100 bln cash call

20 Nov 2023

Scaling up the Washington-based lender and other multilateral banks makes geopolitical sense and helps fight climate change. Sweating their balance sheets is a start. But eventually shareholders including the US will have to overcome domestic hurdles and put up more capital.

With Saudi, India can push new cricket boundaries

20 Nov 2023

India is on course to dominate the sport despite its defeat in the cricket World Cup final at the weekend. The kingdom has discussed a deal valuing the Indian Premier League at $30 bln, per Bloomberg. It’s a wise departure from Riyadh’s heavy-handed approach to sports investing.

Capital Calls: Gap earnings

17 Nov 2023

Concise views on global finance: Investors rewarded improvements at the apparel company's Old Navy brand by sending shares up over 30%. Yet overall third-quarter results remain muted. It’s a promising sign for new boss Richard Dickson, even if the bar was low to begin with.

Ransomware targets will pay one way or another

17 Nov 2023

Just saying no to extortionists – as the White House wants US firms to do – might stamp out ransom attacks. But the hack of Chinese bank ICBC shows why it’s not always realistic. Companies who won’t pay up need ever-better defenses. Either way, it’s an extra cost to be borne.

Multipolar world opens up surprising safe havens

17 Nov 2023

Despite geopolitical challenges the United States remains the world’s largest net debtor, owing the rest of the globe $18 trln. Yet increasing dependence on overseas equity investors makes it vulnerable. If the tide turns, fund managers may be better off in emerging markets.

Tata Technologies sets smartly low bar for IPO

17 Nov 2023

The EV-servicing firm is the Indian conglomerate’s first listing in nearly two decades. The $2.4 bln valuation at 28 times earnings is well below peers. But most of its business comes from just five clients and Mumbai stocks are expensive. A cheap price may ensure a smooth start.

Alibaba’s U-turn casts dark clouds over China tech

17 Nov 2023

The $200 bln giant nixed the spinoff of its cloud unit, blaming US curbs on chips. The end of Beijing’s regulatory crackdown has not brought hoped-for stability. With markets worried about China’s economy and bad geopolitics, it’s still too hard to see the bottom for the sector.

Biden and Xi’s warmer ties look flimsy

16 Nov 2023

The leaders of the largest economies resumed high-level communication following years of tension. In this Viewsroom podcast, Breakingviews columnists explain how Taiwan as well as anti-China rhetoric in the lead-up to next year’s US election could undo any goodwill.

Capital Calls: Walmart, HelloFresh

16 Nov 2023

Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.

Biden-Xi summit clears low bar, reaches no heights

16 Nov 2023

The US and China leaders agreed to resume military communications, work to curb fentanyl production and discuss the risks of AI. It reduces the risk of an accidental war over Taiwan but the otherwise thin pickings highlight a fragile world where managing conflict tops the agenda.

JD’s stunted growth leaves it in the discount bin

16 Nov 2023

Revenues in the Chinese e-tailer’s core electronics and appliances unit struggled last quarter. As consumers feel the pinch, a focus on big-ticket items puts it at a disadvantage to rivals selling cheaper goods. The valuation is depressed but so is the business outlook.

Measuring the US and China’s conscious decoupling

16 Nov 2023

President Joe Biden and his Chinese counterpart Xi Jinping don’t agree on the terminology, but the Sino-American relationship is fracturing. A close look at trade, finance, investment, people and geopolitical noise shows the world’s two largest economies are pulling apart.

COP28’s big challenge: green cash for poor states

15 Nov 2023

To hit net zero, rich countries need to find an extra $1 trln a year of public and private cash for the developing world. As delegates head to Dubai for 2023’s key climate shindig, the UAE could bolster its credibility as host by focusing attention and resources on a fix.

Capital Calls: Goodyear, Target

15 Nov 2023

Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.

China’s property boost has to sway wary banks

15 Nov 2023

Beijing wants to inject 1 trln yuan into housing projects. It’s a bigger version of a 2022 scheme lenders shunned because developers are saddled with huge debts. Without a broader plan to convince banks the government can stop the real estate rot, the new effort will also fail.

Bank of Japan’s hesitancy obscures yen’s appeal

15 Nov 2023

The central bank is signalling it will ditch ultra-low interest rates next year. That should boost the yen. Instead, it remains at historic lows against the dollar. Traders’ mistrust of the BOJ’s determination to act may cause them to miss out on the currency’s probable comeback.

Capital Calls: Disney’s Marvel flop, US inflation

14 Nov 2023

Concise views on global finance: Bob Iger’s prized acquisitions Marvel, Pixar and Lucasfilm are losing their mojo, just as his dealmaking mettle is being tested; inflation has eased even as growth looks strong, but warnings from consumers and companies signal potential weakness.

More US-China take-privates could get feisty

14 Nov 2023

A bidding war has erupted for $1.4 bln Nasdaq-listed industrial automation solutions firm Hollysys. One would-be buyer even staged a dawn raid. If a deal succeeds, minority owners of undervalued peers could push for more value, too, as Chinese companies bid farewell to the US.