SoftBank gives graphic demo of complex new era 7 Aug 2017 The Japanese group’s first results to include the giant Vision Fund showed a surprise $1 bln gain on shares in a U.S. chipmaker. Vision has inspired frenetic dealmaking, but the benefits to investors are unclear. A complicated outfit has become even harder to decode.
Chinese are buying London’s skyline past its peak 7 Aug 2017 Hong Kong-based bidders have snapped up the Walkie Talkie and Cheesegrater skyscrapers for 1.3 bln and 1.2 bln pounds respectively. The sky-high prices mean lower yields at a time when Brexit is putting pressure on rents. Still, it’s better than buying real estate at home.
Macau investors bet casino licence luck holds 7 Aug 2017 A policy change has set off a row between authorities and land developers in the Chinese gambling enclave. Now some worry casino licences might be up for revision too. But investors are betting that foreign operators’ luck will hold when concessions come up for renewal in 2020.
Signals are good for China Tower IPO 7 Aug 2017 The company that owns nearly all of China’s telecom towers is preparing a Hong Kong listing of up to $10 bln. Investors like the industry’s stability and high yields, while China Tower also boasts some growth potential. At the right price, this should get a good reception.
Toyota tunes up with Mazda deal 4 Aug 2017 The Japanese giant and its peer are taking small stakes in each other, and will build a $1.6 bln U.S. plant together. Toyota is racing to keep up with shifts in technology and consumer tastes. Drawing closer to Mazda and other Japanese automakers helps.
China charges into burgeoning bitcoin battle 4 Aug 2017 The crypto-currency has been cloned, thanks to support from China's massive mining community. Although local trade has been suppressed by regulators, the People's Republic has managed to increase its influence over bitcoin's development by running the machines behind the market.
Sydney meets Shandong in $2.5 bln share sale 4 Aug 2017 Yancoal is raising more than 10 times its own market cap to buy Rio Tinto’s coal unit. To get this done, the indebted small-cap had to bring in some unusual underwriters. The result is a novel blend of Australian public-company process and Chinese state capitalism.
Viewsroom: Venezuela’s downward spiral 3 Aug 2017 Questionable elections for a rubber-stamping new assembly may give President Nicolas Maduro more power. But the country’s people, economy - and some U.S. companies - will suffer. Also: Sprint, under a ton of debt yet overvalued, weighs up its M&A options.
U.S.-China spat casts doubt on MoneyGram payoff 3 Aug 2017 Shares in the U.S. payments firm trade 12 pct below an offer from Jack Ma’s Ant Financial. Markets are now pricing in a sizeable risk that the Trump administration will stymie the $1.2 bln deal. That would send a nasty message to Beijing, at the expense of MoneyGram investors.
Local brands are big losers in India’s handset war 3 Aug 2017 India’s richest man unveiled a free internet-enabled phone to much nationalistic fanfare. Rapid uptake of Mukesh Ambani’s device will bring more people online. Homegrown rivals will be squeezed between this giveaway and aggressive Chinese rivals targeting richer buyers.
Hadas: Time for tobacco to kick the profit habit 2 Aug 2017 Despite ever-tighter restrictions, cigarette makers still have massive cash flows. A shrinking industry which conflicts with the common good doesn’t need the money. The firms should give up on shareholder value and be redesigned for orderly decline. Governments can help.
Rio Tinto’s new problem: What to do with its cash 2 Aug 2017 The miner more than doubled earnings in the first half and promised to return $3 bln to shareholders in buybacks and dividends. Higher prices and asset sales helped reduce debt to its lowest level since 2010. After years of deleveraging, spare cash is an unusual dilemma for Rio.
Search engine IPO depends on Tencent for results 2 Aug 2017 China’s Sogou is planning a U.S. listing valuing it at up to $5 bln. The firm is a distant second in mobile search behind Baidu. Sogou, or “search dog”, will have to work like one to convince investors its relationship with part-owner Tencent can justify that valuation.
Sony is turning from financial wimp into superhero 1 Aug 2017 Strong quarterly results underline a long turnaround. This will be a boom year for gaming and image sensors, while handset and TV-making have been pruned. Even Sony Pictures, co-producer of the new Spider-Man, is perking up. Shame this hero still looks like a corporate mutant.
Man Group’s growth push comes at a cost 1 Aug 2017 The UK fund manager’s assets under management leapt to $96 bln as it bought businesses and raised funds. Man’s broad range of business helps it resist some of the pressure from passive products. Even so, margins are falling. Active managers have to keep working harder.
Macau cashes in on cheap thrills and VIP perks 1 Aug 2017 The gambling hub is enjoying a flutter this year. VIP and ordinary gamers stayed at the tables in July, lifting monthly revenues to their highest level since January 2015. If China's economy cooperates, and planned capacity comes on line, the good times will roll on.
China’s trophy case could become discount rack 1 Aug 2017 Big dealmakers such as Anbang and Wanda might have to hold a yard sale. HNA is still keen on ousted White House adviser Anthony Scaramucci's firm SkyBridge, but it too may need to cut back. Bargain-hunters will benefit from any Chinese selling spree.
Fancy fast food makers eye China’s dining upgrade 1 Aug 2017 Changing consumer appetites in the world's largest fast food market are attracting attention from premium brands like Shake Shack – possibly at the expense of incumbents like McDonald's. The opportunity looks tasty, but competition and quality control could give them heartburn.
HSBC’s new chairman inherits a bank on the up 31 Jul 2017 First-half results from the global lender show robust revenue growth, cost discipline, and healthy capital. Higher interest rates should help lift return on equity above 10 pct. Though incoming Chairman Mark Tucker will doubtless make changes, a radical shakeup looks unnecessary.
Hutchison Telecom’s sell-off is a risky call 31 Jul 2017 The Li Ka-shing-backed firm is selling its fixed-line arm for $1.9 bln. The market undervalued the unit and a better-than-expected price reflects keen competition for Asian buyouts. Yet the remaining business will be painfully dependent on Hong Kong’s wobbly mobile market.