Rio Tinto is due to unearth new growth ideas 7 Feb 2018 The $100 bln miner's latest results reveal a company cranking on all cylinders. Decade-high profitability led to nearly $10 bln in dividends and buybacks last year. Before long, though, investors may want boss Jean-Sébastien Jacques to find some other smart uses for the money.
SoftBank pursues Vision at dizzying pace 7 Feb 2018 Masayoshi Son’s group deployed $27 bln using the Vision Fund and a sister vehicle in barely seven months. Plenty more big ticket spending is in the works. Such frantic dealmaking is sure to generate a few flops – which won’t matter if the tech funds can find a few more Alibabas.
Air India’s turnaround could use some spice 7 Feb 2018 Prospective owners of the soon-to-be privatised national carrier could learn from SpiceJet. Co-founder Ajay Singh brought the low-cost airline back from the brink by improving punctuality and refocusing the route network. That has helped to deliver record earnings.
Steve Wynn’s exit rolls dice on his casino empire 7 Feb 2018 A tone-deaf board "reluctantly" accepted its founder and CEO's resignation following sexual misconduct allegations against him. That could placate gaming authorities from Nevada to Macau. At the same time, it makes Wynn Resorts more vulnerable to a takeover.
Alibaba’s reunion with Ant Financial is heartening 7 Feb 2018 Jack Ma’s group will get one-third of his $60 bln fintech unit. This builds on an earlier deal to placate investors after he seized part of the business, blaming foreign ownership restrictions. The move simplifies the duo’s relationship and suggests Beijing’s stance has softened.
Elliott’s fresh attack on BHP misses its target 7 Feb 2018 The activist fund has been nipping at the heels of the world's largest miner for months. Now it argues that unifying listings in London and Sydney could mean a $22 billion boost. It’s a lot of distraction and cost for an unproven gain. Simplicity is unlikely to be so lucrative.
U.S. watchdogs put crypto-currencies on long leash 6 Feb 2018 Regulators warned Congress that bitcoin and the like test the limit of current law. But for now they seem willing to let the volatile $370 bln market develop rapidly as long as they can keep a handle on fraud. A measured approach makes more sense than Asia’s heavy-handedness.
Chancellor: Beware economic models’ hidden biases 6 Feb 2018 In the age of fake news there’s one comforting thought. It’s easy to expose blatant lies. Harder to identify are possible prejudices buried in the models that inform policy decisions, as recent controversies involving Brexit's impact and the World Bank business rankings suggest.
Wanda thriller casts Jack Ma in supporting role 6 Feb 2018 The troubled conglomerate is selling a $750 mln stake in its Chinese cinema chain to Alibaba. Dalian Wanda improves its financial picture and maybe its chances to add production to theatres. Ma, whose company just wrote down its studio investment, gets a shot to play hero.
Airshow buoyancy masks turbulence ahead 6 Feb 2018 Aviation bosses gathering in Singapore may want a serving of scepticism alongside the champagne. Rising oil prices, creaking infrastructure and too many seats will limit the gains from a regional boom in cheap flights. Full-service carriers could also hit air pockets.
Cox: Sliding stocks don’t surprise our readers 5 Feb 2018 From Mumbai to Milan, we polled participants at our Predictions 2018 summits. Even before last week's rout, most thought investors are too exuberant, bitcoin is a bubble and Donald Trump is doing poorly. More surprising were regional takes on NAFTA, Italian elections and Brexit.
Freed Samsung heir cannot escape reform spotlight 5 Feb 2018 A court suspended Jay Y. Lee’s prison sentence. With Lee’s family symbolising the state of corporate Korea, any perceived leniency will be controversial. But this does not look like a return to the bad old days of executive impunity. In any case, both sides can still appeal.
San Miguel serves up an enticing spread 5 Feb 2018 The conglomerate run by Filipino billionaire Ramon Ang is uniting beer, liquor and food using a complex share swap. San Miguel Pure Foods, a maker of liver paste and other fare, trades below the implied $9.1 bln valuation. There are reasons to think that financial gap will close.
Sequoia joins the frothy fund club 5 Feb 2018 The early backer of Google and Apple could raise $8 bln to fund startups that are close to floating, says Reuters. It’s a hot market but a largely unproven strategy. Huge sums being invested by Japan’s SoftBank are probably inflating prices too. Investors may do better elsewhere.
Ola puts SoftBank in back seat with overseas drive 5 Feb 2018 The Indian ride-hailing outfit wants a slice of the action in Australia. The intrusion into one of Uber’s strongholds will irk SoftBank, which is a big investor in both firms. The Japanese group’s minority stakes clearly are not enough to stop fights between taxi startups.
Sony rolls opening credits on Turnaround 2 2 Feb 2018 Finance chief Kenichiro Yoshida is a good choice to lead the $62 bln group. The co-architect of Sony's overhaul can continue the aggressive revamp that has lined shareholders' pockets. Handsets and big shareholdings are two of the Japanese group's last big problem areas.
Vietnam’s Thatcherism could use an extra push 2 Feb 2018 PV Power is the latest successful privatisation for Asia's fastest growing economy. Despite a broad anti-graft campaign, stake sales are going gangbusters, as is the local stock market. That makes it easy to refrain from enacting deeper reforms, but they'd help sustain momentum.
Trump’s weak dollar upends Asian growth calculus 2 Feb 2018 Asia is bracing for a softer greenback. That could curb export-led growth from South Korea to Singapore and prompt a reappraisal of stock valuations. A U.S. policy shift could complicate Japan’s deflation fight and China’s ability to keep growing 6.5 percent annually.
Viewsroom: Jamie Dimon risks ruining a good run 1 Feb 2018 JPMorgan’s chairman and CEO intends to lead the bank until around 2023. Dimon has built a strong and successful company over the past 12 years. But the longer he stays, the harder it becomes to leave on an unambiguous high. Plus: Asian governments tackle bitcoin.
Jack Ma’s shopping adventures bring mixed results 1 Feb 2018 The Alibaba founder’s bets on bricks and mortar, logistics and movies weighed on the e-commerce giant’s margins in the December quarter. A 33 pct stake in payments affiliate Ant looks more promising. Even so, investors can only brace for the unpredictable impact of Ma's forays.