Volvo’s green car forecast flashes an amber light 29 Mar 2019 Boss Hakan Samuelsson says electric vehicles will be as lucrative as gas guzzlers by 2025. Taken at face value, that's optimistic, given Tesla, BYD and Nio struggle to break even. It's also a warning: making traditional engines ever cleaner and more efficient is driving up costs.
Viewsroom: Who will drive off with Fiat Chrysler? 28 Mar 2019 Peugeot and Renault both seem keen to merge with the Italo-American carmaker. Either deal could improve earnings from smaller cars, but couldn’t plug all Fiat Chrysler’s gaps in Asia and new tech. Plus: Apple’s underwhelming new services. And can Huawei’s charm offensive succeed?
Huawei will survive in Europe, but not thrive 28 Mar 2019 The Chinese telecom-kit maker avoided an EU-wide ban, despite U.S. pressure for one. Yet a UK security report has found serious flaws in its gear. The slapdown means higher costs for Huawei, and could put off clients who will worry about future government censure.
China’s 5G noise scrambles ZTE’s positive signals 28 Mar 2019 A ban on U.S. suppliers selling parts to the $16 bln telecom company dragged it into the red in 2018. Its Hong Kong shares are up 50 pct this year anyway, on the promise of 5G networks. Signs that Chinese carriers may delay a rollout, however, suggest such hopes are premature.
Cathay’s budget-airline deal may add HNA surcharge 28 Mar 2019 Buying Hong Kong Express from the ailing Chinese conglomerate for $630 mln is a sensible defensive move. One investor – maybe the target’s own chairman – has threatened to fight the sale, however. That could raise the price for Cathay, and is a warning to suitors for HNA assets.
Grindr stokes bad blood in U.S.-China relationship 27 Mar 2019 The dating app’s Chinese ownership has been flagged as a U.S. security risk, Reuters reports. That ought not be a surprise given the potential to use hook-up data for Kompromat. But amid a trade war, this jilting move is likely to make U.S.-China relations even rockier.
China property giants face call of tech sirens 27 Mar 2019 The $45 bln Evergrande and peers reported bumper earnings for last year despite slowing overall sales. Home prices are rising, debt is stabilising and policy seems friendlier. Shareholders could relax, were developers not also plowing into electric cars and robots.
Huawei’s charm offensive scores only half-points 27 Mar 2019 The Chinese telecom champion is engaging in an unprecedented public relations push, battling U.S. allegations of spying, IP theft and opacity. Its arguments about security have some merit, but the campaign might convince more sceptics if Beijing wasn't trying so hard to help.
China’s art market paints a clearer picture 27 Mar 2019 Sales in the mainland and beyond dipped in 2018, to $13 bln. There was still exuberance: a monumental abstract triptych sold for a record $65 mln. But the mood ahead of Hong Kong’s Art Basel is subdued. For buyers, that may be good news, auguring less volatility and lower prices.
The Exchange: Fomenting rugby fever in Hong Kong 26 Mar 2019 As the city braces for the annual Sevens showdown, organiser Robbie McRobbie tells Breakingviews what the event reveals about its host. From fancy dress and fancier corporate suites, to a real estate dilemma, the sports extravaganza tracks the financial hub’s health and wealth.
Chinese champions need a harder dividend squeeze 25 Mar 2019 Beijing wants to help balance its books by making stingy state companies hand over more of the $500 bln they earned last year to shareholders. It’s a good idea, but the economic effect will be modest until deeper reforms are put back on the table.
China’s majors fill up on gas at the right time 22 Mar 2019 PetroChina’s losses on gas imports swelled to nearly $4 bln in 2018, thanks to low domestic rates. Yet China’s oil giants are preparing to buy more LNG from U.S. firms. That aids the trade cause. More importantly, it may help lock in supply before a forecast shortfall.
Viewsroom: German bank M&A’s questionable logic 21 Mar 2019 Putting Deutsche and Commerz together might create a national banking champion. A more likely outcome, though, would be a poorly performing behemoth. Meanwhile, Volkswagen boss Herbert Diess commits the mother of all CEO gaffes. Plus: sizing up a Chinese housing unicorn.
Tencent needs new obsession to replace video games 21 Mar 2019 The web giant’s fourth-quarter earnings slumped by nearly a third to $2 bln as Chinese curbs on mobile games took effect. Bets on payments and cloud computing have yet to pay off, and Tencent’s M&A record is patchy. Investors deserve a clearer idea of where it’s headed next.
China’s carriers dig deep for world-beating 5G 21 Mar 2019 The mobile giants have hinted at how much they will spend on the initial buildout of next-generation technology, outlining the first real plans for a potential $140 bln project. Costs look manageable for now, but expensive calls from Beijing remain a worry.
Hong Kong fumbles its China extradition fix 21 Mar 2019 The city may exclude white-collar crimes from a mooted deal to exchange suspects with the mainland, to assuage the business community’s concerns. Unfortunately, such an awkward compromise would only confirm the tension between the financial hub’s needs and Beijing’s ambitions.
Citic and CLSA will survive boss departure 20 Mar 2019 The Hong Kong brokerage’s CEO is quitting, shortly after its chairman left. The moves have led to whispers of a culture clash with China’s Citic Securities, which bought CLSA for $1.3 bln in 2013. Bank mergers are always a challenge. Still, it’s too early to write this one off.
Rivals can fly around Google’s game cloud 20 Mar 2019 The U.S. web giant is stepping into gaming with a browser-based service. Console makers Nintendo and Sony lost a combined $3 bln of value on the news. Google's scale intimidates, but victory depends on exclusive titles that can out-drive Super Mario, not just lots of servers.
Gadgets light up Xiaomi’s future 20 Mar 2019 The Chinese giant defied a global phone slump with a 53 pct jump in 2018 sales to $26 bln, even after a sluggish fourth quarter. Bets on cheap-and-cheerful markets are paying off, as is a shift to pricier devices. Despite boss Lei Jun's internet ambitions, hardware still matters.
Dianrong boss daringly says what many are thinking 19 Mar 2019 Co-founder Guo Yuhang blames the government for slow growth at his peer-to-peer lender. Such regulatory grievances are common from bankers elsewhere, but rare in China. The complaints will strike a chord in the industry even if they don’t alter the course of mercurial rules.