Blackstone hunts Japanese deals – and pensions 30 Aug 2017 The U.S. private equity giant has hired a chairman in Tokyo and may earmark a chunk of a new Asian fund for Japanese buyouts. That should help it land money from local institutions, as they prepare to put billions of dollars into alternative investments.
SoftBank’s Vision Fund has $34 bln jackpot in sight 28 Aug 2017 Japan’s Masayoshi Son is nearly done raising a $100 bln tech war chest. If investments double in value, SoftBank’s own holdings would swell by $28 bln, and it would share in nearly $6 bln more of profits. The challenge is finding good, big bets in already expensive markets.
How the Bank of Japan can keep the money flowing 25 Aug 2017 The disappearance of inflation is the big debate for central bankers in Jackson Hole this weekend. That puts Japan in an uncomfortable spotlight. The BOJ is running short of government bonds to buy - but could do more by becoming more creative in its asset purchases.
Japan Inc now chases unicorns, not Sunflowers 24 Aug 2017 SoftBank is putting an astonishing $4.4 bln into WeWork, a purveyor of hip shared office spaces. Growth means Masayoshi Son’s outfit may fare better than Japanese firms that once splurged on Impressionist paintings and Rockefeller Center. But those assets weren’t easy to copy.
Mitsui Sumitomo makes pricey advance in Asia 24 Aug 2017 The Japanese group has swooped on Singapore’s biggest property and casualty insurer for $1.6 bln in cash. That equates to an expensive-looking 3.3 times book value. Still, the deal will consolidate the buyer’s already strong presence in fast-growing Southeast Asia.
Take the money and run is new Uber Benchmark 15 Aug 2017 The ride-hailing firm is beset by controversy, managerial turmoil and huge losses, despite its market dominance. Early investor Benchmark may be loath to give in to demands to sell its 13 pct stake. But it’d restore some stability and let the VC firm make some 200 times its money.
Breakdown: Killing Libor is a long, messy business 14 Aug 2017 Obituaries for the discredited global benchmark are premature. Its successors will take years to become as ubiquitous as a rate that is still the basis for trillions of dollars of financial contracts. Breakingviews spells out the legal pitfalls – and the trading opportunities.
Japan’s growth spurt points to household revival 14 Aug 2017 GDP leapt by 4 percent, annualised, last quarter. The data is volatile and often revised. Still the unbroken run of expansion, now 18 months long, is good news. So is rising household consumption, as Japan tries to create a virtuous circle of higher wages, spending and inflation.
M&A leaks further erode Asian markets’ credibility 11 Aug 2017 India, South Korea, Japan and Hong Kong were the leakiest M&A markets last year, a survey suggests. That is embarrassing given Asia is already a corporate governance laggard. Regulators can work harder to alter the risk-reward tradeoff, but a complete cleanup is near impossible.
SoftBank’s Indian shopping spree gets even spicier 10 Aug 2017 The Japanese conglomerate’s Vision Fund is pumping $2.5 bln into online retailer Flipkart, rendering its parent’s near-$1 billion punt on rival Snapdeal largely worthless. It’s the group’s latest big-ticket fail on an Indian startup. This is venture capital on an epic scale.
Toshiba’s market reprieve could be fleeting 10 Aug 2017 The troubled Japanese group has finally filed audited accounts. Yet it could still be delisted if Tokyo’s stock exchange faults its internal controls, or if it cannot sell a memory unit in time. That would be painful for small investors, though bigger funds might stick around.
Hadas: Japan humbles the economists 10 Aug 2017 The country has been invalidating accepted wisdom about growth, business and finance for centuries. Its inability to push up inflation is the latest example. Some theories are valid even in Japan. Still, economists would do better if they had fewer universal rules.
Cox: Japanese beer could use some home-brew 7 Aug 2017 Sapporo just acquired San Francisco's Anchor Steam, a godfather of American craft ale. Kirin already bought a stake in Brooklyn while Asahi took over Peroni and Grolsch. All three are profit laggards. Overseas shopping diverts from a more pressing matter: consolidation in Japan.
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.
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.
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.
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.
Nintendo shows mastery of multi-platform game 27 Jul 2017 The Japanese videogames giant beat forecasts, sending its shares higher. The new Switch console is a hit, while Nintendo is also getting the hang of mobile games and using characters like Super Mario offline. Now the only real drag is that the company hoards so much cash.
Grab rides two trends to $6 bln valuation 24 Jul 2017 The taxi app is raising $2.5 bln in Southeast Asia’s biggest fundraising. It helps that Japan’s SoftBank is investing in unicorns everywhere and that Didi, like China's other tech giants, is chasing growth nearby. The funds will make it harder for Uber to conquer the region.
Abe’s weakness puts Japan reform momentum at risk 24 Jul 2017 A period of unusual political stability helped Prime Minister Shinzo Abe shake up the economy. But his approval ratings have crashed. He is more likely to respond with populist spending than doubling down on reform. If that fails to shore up his support, he may be replaced.