Asia-Pacific

Aussie petrol station bidding war lacks fuel

8 January 2020

UK-based EG Group is interested in buying pump operator Caltex Australia, raising pressure on Canada’s Couche-Tard to up its $6 bln offer. Its costs could already far exceed returns, however. For the target, it’s only a possible relief from a fraught go-it-alone IPO plan.

Samsung signals memory-chip cycle’s new normal

8 January 2020

The South Korean group ended 2019 with a 34% slump in quarterly operating profit. With fewer rivals, prolonged downturns are less of a worry; supply cuts hint at an unusually quick recovery. Samsung can focus on innovation and curbing added risks of pricing power.

India’s big build hinges on credibility revamp

7 January 2020

New Delhi wants the private sector to fund one fifth of a $1.4 trln infrastructure plan over five years. Much of the country’s bad debt, however, has come from previous projects. Investors will want evidence politicians are offering manageable risks before they sign up again.

An ever-drier world will unleash investment flood

6 January 2020

By 2030 humans will be using 56% more water than is sustainable, a new report shows. Closing the gap may cost $1 trln a year. But companies and investors are showing more interest in preventing a global water crisis. That bodes well for finding solutions – and making a profit.

Europe will emulate Japan’s foreign takeover binge

6 January 2020

A shrinking domestic market and cheap money prompted Japanese firms to ramp up abroad. Their EU counterparts already have greater international exposure but face similar stagnation and demographics at home. Watch the shopping habits of Siemens, Eni, Roche, ING, SocGen and others.

The Exchange: India’s water crisis

6 January 2020

Kicking off Predictions 2020, Amit Chandra of Bain, Reshma Anand of Hindustan Unilever Foundation and Mridula Ramesh of the Sundaram Climate Institute come together in Mumbai to discuss who should pay for the scarce resource, and how the private sector can map out its true cost.

Beijing steers green cars in a new direction

6 January 2020

Subsidy cuts exposed tepid demand for electric vehicles in a country that accounts for 40% of global sales. Hybrids will gain stronger state support instead. China’s sway spells trouble for the likes of Tesla and Nio while giving a charge to others including Toyota and Honda.

Hong Kong poised to reclaim IPO crown

6 January 2020

It has been a decade since the Asian financial hub beat the Big Apple in new equity issuance. Violent protests are a challenge, but Alibaba provided some reassurance. The U.S. backlash against China and a stable of mainland unicorns will help make Hong Kong No. 1 again in 2020.

HSBC’s Hong Kong headache looks like its worst

3 January 2020

Demonstrators vandalized bank branches after police froze a protest-related account. HSBC earns over half its profit in the former British territory, so boycott threats and the current recession are big risks. With Beijing on his back, interim CEO Noel Quinn has few good options.

Underdog will take home Japan’s casino jackpot

3 January 2020

Malaysia’s Genting is not the bookies' favourite as it competes for a coveted licence in the new market, worth $10 bln or more. But while it lacks Galaxy’s glitz or the scale of Las Vegas Sands, the betting group’s success in super strict Singapore will give it a winning edge.

Carlos Ghosn helps the 1% end decade on-brand

2 January 2020

Nissan’s ex-boss didn’t like Japan’s justice system, and so arranged an escape to his former home Lebanon. The grotesque use of wealth ties a bow on a lucrative 10-year run for the ultra-rich. Leave it to a man who once partied at Versailles to rally the anti-plutocracy movement.

Politics cripples shaky China-UK stock link

2 January 2020

Irritated by British attitudes towards Hong Kong, Beijing has suspended the scheme that connects equity markets in London and Shanghai. Already struggling, the initiative will be hard to revive. The UK loses potential new business, while China ends up more dependent on New York.

Mukesh Ambani’s empire will be cast in fresh light

2 January 2020

India’s richest man can reap two big benefits from carving up his sprawling Reliance Industries. First, he would fulfill a promise to make the $130 bln oil-to-telecom conglomerate almost free of debt. It also should help achieve a higher, tech-like valuation from investors.

A health craze for 2020: Chinese medicine

2 January 2019

A locally-developed cancer therapy from the People's Republic has won U.S. approval for the first time. For pharmaceutical giants, discovering a made-in-China blockbuster drug may be within reach. Cross-border deals will follow, as will some unexpected side effects.

Trade wars are holding cross-border M&A hostage

31 December 2019

Global deals exceeded $3.8 trln in 2019, but takeovers where buyer and seller are in different countries fell by a quarter. Geopolitical tensions make any big transaction a potential target. Spats between the United States, China and the EU look set to keep weighing on activity.

Carlos Ghosn jailbreak is all-purpose face saver

31 December 2019

The former car CEO has turned up in Lebanon. How he got out of house arrest in Japan is unclear but it could wind down an uncomfortable diplomatic affair. Nissan and Renault can move on. Japan’s judicial system avoids scrutiny. Ghosn swaps his cultivated martyr image for freedom.

Best of Breakingviews: What you read most in 2019

31 December 2019

Deals dominated the most-clicked stories for the year, while spats over everything from cars to comedy classic “Friends” made it into the top ten list. Graphics and a punk politico punched above their weight too. But an Indian tycoon and GE’s surprise whistleblower beat them all.

Soccer giant will field Chinese star to kick sales

30 December 2019

Super-clubs like Manchester United and Real Madrid need new revenue streams as growth from the traditional pay-TV cash cow slows. In 2020, a top team will look to boost merchandise and sponsorships in a huge market by fielding a sub-par Middle Kingdom athlete.

How our 2019 predictions played out

27 December 2019

As Breakingviews publishes its columnists’ prognostications for next year, we look back at the previous crop. We had some bloopers – not least on GE, the ECB and Tesla. But we also hit some on the nose, from SoftBank write-downs to Argentina’s president being voted out of office.

Beijing will dilute Hong Kong with Shenzhen

27 December 2019

Protests in the former British colony endanger China’s gateway to international markets. Past attempts to turn neighbouring Shenzhen into a rival financial hub have been half-hearted. Now Beijing has reason to press harder, especially with bold reform to capital controls.