Asia-Pacific

China-U.S. trade war will get a lot more personal

12 December 2018

Washington and Beijing’s tariff truce is looking fragile. The arrest of tech giant Huawei's CFO on U.S. behest complicates matters. Detention is a common business negotiation tactic in China, as a Canadian ex-diplomat just found out. U.S. executives have good cause to worry.

Global equities offer value trap in 2019

11 December 2018

After two sharp corrections in 2018, U.S. earnings multiples are near 10-year averages. Yet aside from the dot-com bubble, U.S. stock valuations have never been higher in cyclically adjusted terms. With leading economic indicators stretched, they may be built on sand.

Apple case underscores Chinese tech ties that bind

11 December 2018

A mainland court banned the sale of older iPhone models just days after Huawei’s CFO was detained in Canada. Meanwhile, U.S. regulators have revived old concerns about Chinese audits. Trade-war-related or not, the decisions allude to how many connection points there are to sever.

China’s export mystery may grant economy reprieve

11 December 2018

Shipments manage to keep rising despite U.S. tariffs. Many assume it’s due to “front-loading” orders to get ahead of duties, yet evidence is thin. If foreign demand has been a genuine driver up to now, Beijing will have a far easier time coping with the looming slowdown.

SoftBank IPO investors mute shrill market signals

11 December 2018

The Japanese group is set to raise a whopping $24 bln in its domestic mobile business float. That makes it one of the world’s most highly valued carriers even as upstart Rakuten becomes a potential threat. Fresh jitters involving Chinese kit also may demand a greater discount.

Governor’s exit kills myth of India’s central bank

10 December 2018

Urjit Patel's resignation after a spat with New Delhi makes him the second chief to leave in almost as many years. That removes the illusion of independence. Finding a successor will be tough too. Investors will now significantly reprice risk as India hurtles into elections.

Miners’ digging rush is a chance to show restraint

10 December 2018

Exploration, which stalled as prices crumbled after 2011, is back. Speculation over Rio Tinto’s drilling in Australia’s Great Sandy Desert, for example, has sent rivals on a copper-hunting frenzy. With deals scarce, such moves make sense, so long as the diggers stay disciplined.

Unsavoury disclosure spoils Chinese food delivery

10 December 2018

Meituan Dianping fired one employee and referred others to police after an internal corruption probe. Yet the $40 bln company only said so in Chinese, and didn’t flag it before its Hong Kong IPO. Once-reported metrics also have gone missing. Such opacity is unappetising.

OPEC condition upgraded from terminal to ailing

7 December 2018

The oil producers’ club agreed a 1.2 million bpd cut with allies like Russia, hiking prices. After Qatar’s exit, failure to do so would have destroyed the cartel’s credibility. But the details imply OPEC leader Saudi’s wishes are subordinate to those of Russia and the U.S.

Review: The uncertain new world of labour

7 December 2018

The number of worried and desperate workers seems to be increasing. Some cultural critics see a symptom of modern social decay. “Precarious Lives” looks at the numbers and finds mild damage. Its main finding: a strong welfare state is welcome, but this problem is hard to solve.

Ericsson debacle exposes costs of anti-Huawei push

7 December 2018

The Swedish group’s glitchy software crashed some telecom networks. Yet it may grab market share, with its rival’s CFO under arrest and governments backing away from the Chinese company’s kit. A more concentrated market would mean higher prices and a risk of further big outages.

Hong Kong tycoon tunneling out of public markets

7 December 2018

Gordon Wu, whose mega-bridge idea was just built, has offered to take his property company private 40 years after its IPO. A $2.7 bln bid puts a big premium on Hopewell’s share price, but still discounts underlying assets. Peers similarly frustrated by valuations may follow suit.

Trade truce gives China room to loosen up

7 December 2018

Wary of sending the wrong signal, Beijing has left its benchmark interest rate untouched since 2015. But central bankers eager to foster growth have other monetary policy levers they can pull, like interbank rates. A period of diplomatic calm gives them the space to do just that.

Viewsroom: Trade war pause may only delay fight

6 December 2018

U.S. President Donald Trump and China’s leader Xi Jinping agreed to a cooling-off period in an escalating tariff spat. Will the ceasefire yield results or is it a stalling tactic? The markets are spooked. Breakingviews columnists discuss the issue from both sides of the Pacific.

U.S. markets could be Huawei’s best ally

6 December 2018

Stocks fell after the CFO of the Chinese telecoms group was arrested for U.S. sanctions violations, jeopardizing a U.S.-China trade truce. President Trump helped Huawei rival ZTE when it was in a similar boat. His keen interest in buoyant markets may lead him to act again.

Huawei settles into eye of geopolitical storm

6 December 2018

Meng Wanzhou, the Chinese telecom equipment maker’s CFO, was arrested in Canada for allegedly violating U.S. sanctions. The case arises just as more countries put the squeeze on Huawei. Suppliers will be rattled, too. It may be a microcosm of a broader containment effort.

Clash of activists could become feature in Japan

6 December 2018

Pushy U.S. hedge fund Elliott voted in favor of $5 bln Alps buying the rest of car navigation systems maker Alpine. Feisty Oasis had long been fighting to block the deal. Such rifts are rare, but may rise in a country where consolidation of affiliates is a growing battleground.

Beijing’s 2018 venture capital party may not last

5 December 2018

Chinese startups raised more cash than Silicon Valley counterparts in the first six months of this year - a first. But despite the $56 bln boost, there are signs mainland festivities are getting quieter, thanks to tighter rules and a cooling economy. A shake-out could follow.

China hangs corruption sword over tech giants

5 December 2018

The arrest of a senior executive at Alibaba, the head of its video-streaming unit, suggests an anti-graft crackdown will not spare web titans. For investors, a tighter grip on tycoons like Tencent’s Pony Ma will be costly. Poor disclosure is adding to the problem.

Ghosn’s jail time risks poisoning alliance talks

4 December 2018

Nissan's former boss, accused of understating his pay, could see out the year behind bars, a local paper says - without being charged. His harsh treatment widens the gulf between Paris and Tokyo, making a deal on future ties between the Japanese carmaker and Renault even tougher.