Takata’s future is full of moving parts 28 Feb 2017 The Japanese auto supplier has concluded a $1 bln U.S. plea deal over deadly airbag inflators. That opens the door to a sale, probably to a Chinese buyer. Yet unanswered questions span legal risks, deal structure, commercial prospects and the fate of existing shareholders.
China’s soccer frenzy has early signs of fatigue 28 Feb 2017 A unit of LeEco has lost the rights to screen top Asian matches after missing a payment on a $100 mln-plus deal. The cash-strapped group has unique problems. Still, Chinese investors have poured record sums into the sport. Some others have probably over-stretched too.
Masayoshi Son could make easy work of $100 bln job 27 Feb 2017 His SoftBank may plunk $4 bln into office-space upstart WeWork. Son blanched at two earlier opportunities to invest at valuations lower than the $20 bln now on offer. One big difference is the Vision mega-fund. Perspectives can change when other people's money gets in the mix.
Vietnam’s banking malady threatens star status 27 Feb 2017 Local lenders need to keep pumping credit into the economy to sustain the country's 6 pct growth. But banks are short of capital. A plan to allow more foreign investment will only help if Vietnam is willing to let outsiders take control of healthier banks as well as weak ones.
China’s unicorn shortcut sidelines IPO reform 27 Feb 2017 The securities watchdog is mulling faster listing approvals for big tech firms. Letting Jack Ma's $60 bln Ant Financial jump the queue may convince other entrepreneurs to follow, eschewing New York and Hong Kong. But this would be a poor substitute for meaningful IPO reform.
Hollywood’s Oscar glow could be dimmed by China 24 Feb 2017 Some $5 bln from the People's Republic has been pumped into U.S. movie production since 2014. The infusion has been a big help as studio margins shrink. A Beijing crackdown on financing presents a threat, however, and could mean more belt-tightening after Tinseltown's big night.
China regulator reshuffle leaves turf intact 24 Feb 2017 The People's Republic is shaking up top financial and economic positions, with veteran watchdog Guo Shuqing poised to take charge of supervising banks. Yet there is still no sign of the much-discussed super-regulator, and central bank chief Zhou Xiaochuan remains in place.
Breakdown: China swaps bad debt for faint hope 24 Feb 2017 The People's Republic is trying to ease its huge corporate debt burden by letting some state-owned groups switch bank loans for equity. Over 300 billion yuan has already been exchanged. Breakingviews explains how, if the companies cannot be saved, taxpayers will still be on the hook.
AIA’s bullish talk contrasts with cash caution 24 Feb 2017 The Asian insurance juggernaut has weathered the clampdown on Chinese capital outflows well, clocking up another bumper year. New business soared 28 pct and a key profit measure rose 15 pct. But management's confidence is not quite matched by its dividend plans.
Rugby fumble will hurt Vodafone’s NZ partner most 23 Feb 2017 New Zealand's antitrust tsar has blocked a planned merger between Vodafone's Kiwi unit and Sky Network. That's irksome for the UK giant but far worse for its local partner. Despite owning rugby and other great sports rights, Sky is bleeding pay-TV subscribers. It needs a Plan B.
Ctrip maps route to become China’s next web giant 23 Feb 2017 A near-monopoly in online travel makes Ctrip an attractive bet on Chinese tourism. Better-than-expected results and punchy growth targets have also impressed investors. If the $24 bln outfit stays on course, it may join Baidu, Alibaba and Tencent among China's online elite.
Ceding Nissan CEO role is a good start for Ghosn 23 Feb 2017 Four chairmanships and three CEO roles spanning Nissan, Renault, the Renault-Nissan Alliance and Mitsubishi Motors is too much even for a boss as indefatigable as Carlos Ghosn. Stepping back from the day-to-day at Nissan is laudable; losing a few more titles would be even better.
Hong Kong budget is missed chance to spread wealth 22 Feb 2017 The city's new finance chief rolled out new spending and said occasional deficits might be permitted. The shift away from stinginess comes weeks before Hong Kong chooses a new leader. But it's unlikely to placate the protest movement; the massive $120 bln reserve stays untouched.
Korea fraud electrifies case for ABB spinoff 22 Feb 2017 The Swiss group suspects its South Korean treasurer helped steal $100 million. Fraud equivalent to a fifth of 2015 local sales was only uncovered after the executive absconded. This plays into the hands of activist investors who wanted ABB to become less complex.
Air Products’ Chinese bid deserves to fly 22 Feb 2017 The U.S. giant has been stuck in a weird battle for control of Yingde Gases, which it wants to buy for up to $2.8 bln including debt. The target's board finally seems to be seeing sense. Bravo: the suitor is offering a fair EBITDA multiple and a fat premium for shareholders.
Baidu’s AI reboot is overdue and welcome 22 Feb 2017 The scandal-hit search engine is prioritising artificial intelligence. Playing to its core strength is sensible. But after costly diversions into video streaming and food delivery, the Chinese tech group owes investors an explanation of how this new pivot will deliver profit.
Post-truth data will come back to bite Uncle Sam 21 Feb 2017 Donald Trump's economic team may tweak trade figures to make deficits look bigger, helping his push for tariffs. Though politicians have always cherry-picked numbers, fiddling with actual statistics threatens confidence. It also raises expectations Trump will struggle to meet.
HSBC’s upward march takes a temporary detour 21 Feb 2017 The UK bank's shares are up by two-thirds since the summer, as investors salivate at the benefits of higher interest rates on its revenue. Yet one-off charges and other setbacks dragged it into the red in the fourth quarter. HSBC is on the mend, but the road is bumpy.
Japan’s small banks face merge-or-die moment 21 Feb 2017 SMFG and Resona could combine three regional units. That's a small step in the right direction. With more than 100 lenders, Japan is wildly overbanked for a mature economy with a shrinking population. Negative interest rates could finally prod others into action.
Golden Globes flop could tarnish Chinese bidders 21 Feb 2017 Officials torpedoed Dalian Wanda's $1 bln bid for Golden Globes producer Dick Clark, a Hollywood website says. Reining in Wang Jianlin may be diplomatically astute and economically prudent, but if China's richest man can't get deals done, it's a bad sign for other Chinese buyers.