Hyundai’s India IPO will crush Korean discount 9 Feb 2024 A Mumbai listing of its local unit at a $30 bln valuation would secure an earnings multiple many times its parent. Proceeds will fuel blistering growth and enable Hyundai to cut more deals. It rarely makes sense to float subsidiaries but this plan looks more than roadworthy.
BHP and Rio take competition out of going green 9 Feb 2024 The giant miners are teaming up to try and decarbonise steel production. Cutting the 8% of global emissions the current process belches out is key to saving the planet. The collaboration can help Australia keep up too. It makes this unusual setting aside of rivalry doubly smart.
Capital Calls: Maersk, SoftBank, Adyen 8 Feb 2024 Concise views on global finance: The Danish shipping giant’s shares fell 14% after it missed expectations and warned of years of earnings pain; the Japanese investment firm posted its first net profit in five quarters; the Dutch payment company is slowly recovering.
Xi can wait out the Anywhere-But-China trade 8 Feb 2024 Removing the chair of the securities regulator offers a scalp for the market crash as domestic and foreign investors dump stocks and claw at other destinations. Confidence is flagging, but the Chinese leader's best option may be to let benchmarks find a bottom first.
Capital Calls: Disney 7 Feb 2024 Concise views on global finance: Boss Bob Iger nabbed Taylor Swift’s movie for his company’s streaming service, took a $1.5 bln stake in Epic Games and shipped more money to shareholders. But traditional TV is declining, and a new sports partnership makes for an awkward fit.
Toyota hitches a ride with the zeitgeist 7 Feb 2024 The car company’s bet on a slower transition is playing well. Shares hit a record high as third-quarter earnings grew 86% and sales of hybrids rose nearly 50%. Even a slowdown in China didn’t dampen the mood as expectations for the world’s largest auto market are fast fading.
Woodside torches Santos’ quick activist fix 7 Feb 2024 The oil and gas driller ended talks with its smaller rival about a $52 bln merger Down Under. A deal always looked hard. But it could have got investors off Santos CEO Kevin Gallagher’s back. Now he’ll have to try the slower route of capital returns, cost cuts and asset sales.
Japan is the new Disneyland of global activism 7 Feb 2024 Elliott wants $24 bln property giant Mitsui Fudosan to offload its stake in the Tokyo theme park operator and buy back shares. Like many of his peers, Mitsui's CEO is a convert to shareholder religion. The new challenge for activists is getting company bosses to be more devout.
A pinch of salt could unsettle electric-car order 7 Feb 2024 Carmakers Stellantis and BYD are betting on sodium-based batteries. The cells’ bulk and need for more frequent charging mean they may struggle to drive lithium tech off the road. But affordability and the prospect of loosening China’s grip on the industry will spur adoption.
China’s bad banks rejig can serve a bigger purpose 6 Feb 2024 Sovereign fund CIC may subsume three of the country’s big four bad-debt managers, per a now-deleted state news agency report. It may seem like more piecemeal policy. But similar moves between 1998 and 2003 to clean up toxic loans helped beat deflation and invigorate the economy.
Capital Calls: Beijing’s anti-corruption drive 6 Feb 2024 Concise views on global finance: President Xi Jinping’s crackdown on the country’s financial sector threatens to derail efforts to boost confidence in the world’s second largest economy.
India needs less Tesla, more Toyota 6 Feb 2024 Hybrids - like those made by the Japanese marque - are taxed as luxuries, at a far higher rate than pure electric vehicles. As global EV sales growth falters and companies around the world slam the brakes on investments, India has fresh reason to level the playing field.
Capital Calls: Estée Lauder, European banks 5 Feb 2024 Concise views on global finance: The cosmetics giant behind Le Labo is cutting jobs and redoubling restructuring efforts, but the changes only go skin-deep; Santander and Lloyds are under pressure after a report they banked entities controlled by a US-sanctioned Iranian company.
TikTok and Universal will stage reunion tour soon 5 Feb 2024 The music giant’s decision to yank its catalog off the social-media app hurts singers and bands more than either business. And yet mixing tunes, both new and old, with a powerful algorithm is harmonious. There are plenty of financial reasons for the duo to get back together.
Red Sea delays are no panacea for European EVs 5 Feb 2024 Suez Canal blockages mean Chinese electric vehicles take longer to get to Europe. But these don’t look bad enough to close the price gap with EU rivals. The most likely upshot is a slower rate of domestic EV adoption, rather than a change in the competitive pecking order.
IMF’s China gloom gets lost in translation 5 Feb 2024 Beijing strikes an optimistic tone in its rebuttal to the fund's detailed assessment of the $18 trln economy, in particular on property and government debt. Countries rarely agree entirely with the IMF but China's position suggests President Xi Jinping is far from ready to blink.
Sovereign debt workouts need knocking into shape 5 Feb 2024 Countries such as Zambia are twisting in the wind because of long delays in restructuring their debts. It is harder to get all creditors to agree now that China is a big lender. A more integrated approach that better manages laggard lenders could lead to swifter results.
Capital Calls: Ferrari closes gap with Hermes 1 Feb 2024 Concise views on global finance: The Italian carmaker’s valuation looks more like its luxury rival Hermes after its record results.
Paytm’s smackdown has a full and final feel 1 Feb 2024 The payments bank of India’s top fintech has been barred by the regulator from receiving deposits. The reputational damage may prompt other lenders to pull back from working with the loss-making $6 bln company. It makes Warren Buffett’s recent painful exit look well-timed.
Nomura offers tantalising glimpse at mediocrity 1 Feb 2024 Japan’s vibrant market helped the investment bank churn out quarterly earnings in line with its 2025 target. Boss Kentaro Okuda’s job now is not just to sustain the performance but to improve the ho-hum 6.2% return on equity that came with it. History is not on his side.