Sorry is the hardest word for central bankers 16 Nov 2017 Bank of England Chief Economist Andy Haldane says rate-setters should speak simply and honestly to the public. The first is easier than the second. Admitting past mistakes or doubts about the present is tough for institutions whose clout depends on an aura of omnipotence.
Japan’s growth streak starts to look shakier 15 Nov 2017 GDP grew an annualised 1.4 pct last quarter, marking the longest unbroken growth run in 16 years. The data is volatile, and often revised, but a global boom appears to be offsetting weaker domestic demand. That underscores the need for further structural reform.
Central bankers go self-referential on rhetoric 14 Nov 2017 Fed Chair Janet Yellen and other top rate-setters took the stage in Frankfurt to discuss how they communicate. It’s a slightly meta admission of the role speechifying has come to play in monetary policy in an era of ultra-low interest rates. But wordiness brings its own perils.
Breakdown: Redesigned TPP deal goes to 11 14 Nov 2017 The Pacific trade pact may be 70 pct less valuable in terms of global income. For Japan, Canada and nine others, though, good economic reasons exist to proceed. It's a defence against lopsided bilateral deals. And TPP could yet add partners to recapture many of the lost benefits.
MUFG banks on an easy ride in Indonesia 13 Nov 2017 Buying some or all of Temasek’s $2.8 bln stake in lender Danamon would round out the Japanese giant’s regional banking footprint. The big question is whether Jakarta will allow a path to control. On that front, MUFG is better placed than the last foreign suitor.
SoftBank turning deals into mind-bending sudoku 10 Nov 2017 Masayoshi Son’s sprawling group has ploughed $4 bln or so into a separate pot to wall off some taxi-app investments. It also may be angling to treble firepower in the Vision Fund and beyond to an incredible $300 bln. The complexity and potential conflicts are piling up.
SoftBank pace should endure after Sprint stumble 6 Nov 2017 Boss Masayoshi Son ditched a deal between his U.S. mobile operator and rival T-Mobile US, losing out on some $10 bln in synergies. SoftBank investors have two solid consolations: a long-term case for keeping control of Sprint and a slew of investments at the $98 bln Vision Fund.
Abe best off keeping Trump out of economic rough 3 Nov 2017 The Japanese premier has established an uncommonly good rapport with his U.S. counterpart. At their upcoming meetings, including on the golf course, Shinzo Abe would be well-served focusing on North Korea. Trade and currency matters only risk creating a momentum-slowing wedge.
Viewsroom: Saudi Arabia’s city of the future 2 Nov 2017 Crown Prince Mohammed bin Salman has a $500 bln plan to attract new business to the oil-dependent kingdom: build a utopian society on the Red Sea free of many of Saudi’s legal and cultural constraints. Plus: why tech and finance execs won’t be joining President Trump in Asia.
Nintendo plays its way toward market’s high score 30 Oct 2017 The Japanese company behind Super Mario Bros. hiked its annual forecast, catching up with bullish analysts. With projected Switch sales up to 14 mln, it's fresh confirmation of the console's success. That makes a valuation of 61 times expected earnings a little less cartoonish.
Nomura’s reinvention gets lift from bond slump 30 Oct 2017 The Japanese bank's quarterly earnings slumped 15 pct – and overseas outposts barely broke even – in large part because of fixed-income trading. At least Wall Street rivals are suffering, too. In effect, it's a backhanded endorsement of Nomura's push into steadier businesses.
Nikkei surge puts onus on Abenomics to keep pace 30 Oct 2017 Japanese stocks have just enjoyed their longest winning streak on record. The market actually looks less frothy than global peers, given solid earnings and large cash piles. But bets on Prime Minister Shinzo Abe accelerating reforms risk getting ahead of progress on the ground.
Asian energy deal defies green resistance 26 Oct 2017 The $5 bln sale of Equis solar and wind projects in Australia, Japan and beyond to a global fund group sets a new benchmark. As clean projects expand, they'll attract oil titans, too. Donald Trump and Malcolm Turnbull may discount renewables, but investors are inflating them.
NTT Docomo is shrinking to greatness 26 Oct 2017 The Japanese mobile giant will repurchase up to $2.6 bln of shares. With limited growth options, Docomo must shower shareholders with buybacks and dividends to grease returns. In turn, that helps its separately listed, state-backed parent NTT keep its own investors sweet.
Masayoshi Son becoming one-man bubble-maker 23 Oct 2017 His sprawling SoftBank may be eyeing a second Vision Fund twice the size of its first yet-unspent $100 billion one. The extraordinary sums are bound to inflate already-frothy tech valuations. Excess capital combined with outsized ambition tends to have a predictable outcome.
Abe wins mandate to give Japan a raise 23 Oct 2017 Shinzo Abe’s big election win gives him room to push harder on reforms to boost wages and competitiveness. But skeptics have seen this before. The prime minister must act quickly and avoid getting sidetracked. After nearly five years of delay, investors are losing faith.
Toshiba chips let Bain surf a Big Data wave 16 Oct 2017 A group led by Bain is paying $18 bln for Toshiba’s flash-memory unit after a drawn-out sale. The memory industry is cyclical and capital-intensive, and it's also in China’s strategic crosshairs. But a rising tide of demand for bytes will lift Bain's boat first.
Fast Retailing tailors a bright future in Asia 13 Oct 2017 Full-year results from the $32 bln fashion retailer behind Uniqlo show it is back on track overseas. Fast Retailing is growing rapidly across Asia, has staunched U.S. losses, and has bold plans for China. After earlier missteps, this Japanese group is going global in fine style.
KKR sets a collision course with Elliott in Japan 12 Oct 2017 The buyout firm raised its bid for a Hitachi subsidiary, offering outside investors $1.3 bln. That price might not satisfy activist shareholder Elliott. KKR may need to sweeten the deal, within reason - its reputation in Tokyo for disciplined buying is worth preserving.
WPP handed lucky exit from Japanese jam 3 Oct 2017 The British ad group, which owns 25 pct of Asatsu-DK, reckons Bain’s $1.3 bln offer for the Asian company is stingy. But WPP is already a winner. CEO Martin Sorrell will either profit from the private equity group’s margin-boosting clout or get the best terms in a decade to exit.