Asia-Pacific

Corona Capital: GM, Glaxo, Shopify, Movies, Pemex

29 July 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors pulls further ahead; GlaxoSmithKline’s vaccine-order boost; Shopify fills its revenue basket; AMC bows to online streaming’s growing power; Mexico’s oil giant puts on a brave face.

Nomura leverages market turmoil to buy time

29 July 2020

Quarterly profit more than doubled to $1.4 bln, as trading volatility bolstered earnings and cost cuts bore fruit. But its retail unit is still struggling, rivals are attacking, and its turnaround plan is in its infancy. At least it can make hay while the sun doesn’t shine.

Ctrip invites funds to buy out China’s travel dip

29 July 2020

The $16 bln booking giant is mulling going private, Reuters reports. Ctrip has a clean balance sheet, no controlling shareholder, and premiums for delisting Chinese companies in New York have nearly halved. It’s a good target as domestic tourism revives. Funding is the trick.

Asia chip windfall preludes tech’s next challenge

29 July 2020

Shares of TSMC and Samsung have leapt on hopes Intel may outsource production. It could enlarge the contract-chipmaking market they dominate by 20%. Still, the $209 bln Intel's woes highlight the high costs of making advanced semiconductors. Finding buyers may get harder.

SoftBank rally makes case for more radical surgery

28 July 2020

CEO Masayoshi Son’s asset sale and share buyback plan worked: the $120 bln group’s shares doubled since March. SoftBank's conglomerate discount has narrowed, but it's still 50%. Investors might wonder why Son doesn’t go further, for example by shrinking his giant Alibaba stake.

Corona Capital: Baseball, Gas cloud, Luxury goods

28 July 2020

Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.

Investors lead the rush back into India’s offices

28 July 2020

Singapore’s state funds are top investors in the IPO of Blackstone-backed Mindspace, a $2 bln real estate investment trust. Work-from-home woes will prop up property demand as developers face a liquidity squeeze. The high yields on offer are a strong pull as interest rates fall.

Ant IPO will clear Tencent’s low bar on governance

28 July 2020

A Hong Kong-Shanghai debut of Jack Ma’s $150 bln fintech giant could put dual class shares and Alibaba’s quirky partnership structure out of reach. Ant may even need to follow a stricter listing code than its local arch-rival. That would be a win for minority shareholders.

China wallets will decide winners in bling rebound

27 July 2020

The pandemic may shrink global sales of fancy handbags and shoes by up to 35% this year. And it will make fashion houses even more dependent on rich Middle Kingdom buyers. Owners of brands with strong local appeal, like Richemont’s Cartier or LVMH’s Louis Vuitton, stand to gain.

Corona Capital: Precious metals, Share sales, Toys

27 July 2020

Concise views on the pandemic’s corporate and financial fallout: The virus and central banks’ response to it is a rich seam for gold and silver prices; UK companies’ growing preference for bonds rather than stock is a warning sign; Hasbro and Mattel vie to see who loses less.

China’s Huawei holds a 5G trump card

27 July 2020

The telecom kit maker’s stack of next-gen wireless patents will be essential as a global standard for 5G emerges. So even as Vodafone and others ditch Huawei hardware, they might end up licensing its intellectual property, and doing so on Chinese terms. That could be punishing.

Hostile takeover tests Japanese love for free food

27 July 2020

Restaurant chain Ootoya rejected a bid from Colowide, saying it would spoil its home-style ethos. The company is hoping its retail investors will remain loyal to the dining coupons they get for holding shares. They would be better off taking the 46% premium, and dining elsewhere.

Goldman Sachs’ 1MDB scar is already fading

24 July 2020

It’s paying $2.5 bln to Malaysia over its role in the scandal, four times its fees. Next comes closure with U.S. regulators. The cost in cash and reputation no doubt stings, a bit. But it's too small to amount to more than one extra line on Wall Street’s mile-long rap sheet.

Review: The false economy of simple solutions

24 July 2020

Two new books – “The Economics of Belonging” and “Angrynomics” – lucidly unpick the roots of what is ailing the liberal world order and propose clear remedies. It’s an appealing approach, but lacks a convincing explanation for why politicians keep making bad policy choices.

Corona Capital: Movies, Sports

24 July 2020

Concise views on the pandemic’s corporate and financial fallout: Walt Disney is pushing back the highly anticipated movie “Mulan,” with a domino effect for “Avatar” and “Star Wars” sequels; and sport stars are still making it rain when it comes to pay.

E-bikes give the two-wheeled market a jolt

24 July 2020

Pandemic-induced fear of public transport and state subsidies have boosted the $65 bln bicycle business. Growing numbers are opting for battery-assisted pedalling. As with cars, the shift is disruptive. Leaders like Shimano and Giant will have to make space for new players.

PetroChina’s $38 bln sale unlocks reform and value

24 July 2020

The state-owned giant is spinning off its oil and gas pipelines in an overdue shake-up that will allow more private competition. The assets will be divested at twice the parent’s book value. It’s a reminder that Beijing can attain its goals without hurting minority shareholders.

Viewsroom: Europe’s big money moment and baijiu

23 July 2020

The 750 bln-euro stimulus package agreed to by EU leaders this week was a test of the region’s political resiliency, may be a big deal for the single currency and could lead to more capital markets and M&A activity, EMEA Editor Peter Thal Larsen explains. Plus, a shot of Moutai.

Hadas: Globalisation is down but not out

23 July 2020

Covid-19 has infected world trade and rising nationalism threatens cross-border harmony. Still, the five-century-old trend towards one world economy has survived worse. Migration, the shared thirst for knowledge and the profit motive will likely bring a resurgence in a few years.

Corona Capital: LatAm pensions, Activism

23 July 2020

Concise views on the pandemic’s corporate and financial fallout: Pension reform in Mexico and Chile gets a coronavirus makeover; UK chief executives catch a break during lockdown as the number of activist campaigns collapses.