Japan and Abe can profit from the Donald Trump era 19 Dec 2016 The quixotic behavior of the president-elect is worrying for a country reliant on globalisation and America's regional policeman role. But it could also boost the Japanese leader's political standing. A stronger global economy and weaker yen will enrich Japan Inc's prospects too.
Casinos offer post-Olympics pickup for Japan 16 Dec 2016 Japan has legalised casinos after many years of wrangling. The market could in time be worth more than $30 billion a year. The resulting construction boom and boost to tourism will help extend Prime Minister Shinzo Abe's economic programme past the 2020 Tokyo Olympics.
Asahi pays frothy price for a flat beer market 13 Dec 2016 The Japanese brewer is paying 7.3 billion euros for AB InBev’s eastern European beer brands. At 15 times trailing EBITDA, the valuation is close to what it paid for Grolsch and Peroni in February. That’s an exuberant price for so-so brands in a difficult region for brewers.
Japan pays top price for Big Banana 9 Dec 2016 Sumitomo is buying Dublin-based Fyffes for 751 million euros. A 50 percent premium is expensive for the humble fruit, especially with no major banana boom on the way. Access to more volumes and markets gives the Japanese group agility in responding to global demand.
Abe is biggest winner from Japan’s GDP overhaul 9 Dec 2016 Adopting UN standards makes the economy look 6 pct bigger. That does nothing to boost growth, dynamism, or inflation. But it does make Premier Shinzo Abe's goal of building a $5.2 trln economy more achievable. It also highlights how Japan is underplaying its research prowess.
SoftBank’s U.S. swoop could net Symantec or Splunk 8 Dec 2016 The Japanese conglomerate is amassing a $100 bln war chest with Saudi backing, and is committing half that much to America. Masayoshi Son can make huge bets on emerging tech firms. Listed targets could include Symantec for cyber security, Splunk for big data, or even Twitter.
SoftBank’s $50 bln U.S. pledge is the easy bit 7 Dec 2016 The Japanese group is raising a tech fund twice that size, so boss Masa Son's promise to Donald Trump looks doable. It can also curry favour for his longed-for merger of SoftBank's Sprint and T-Mobile. But creating 50,000 jobs in the thinly staffed tech industry won't come easy.
Japan has long road to black-belt in governance 1 Dec 2016 The country is the darling of Asia's corporate governance scene after a push to make firms better-run and more profitable. But progress is slow – and the easiest steps came first. To be a real governance ninja requires stronger boards, bolder bosses and more shareholder scrutiny.
MBK takes a $1.3 bln wide swing at golf in Japan 30 Nov 2016 The South Korean buyout firm has bid for golf-course operator Accordia. This business was a good post-bubble investment for Goldman Sachs, and then a disappointing one for public investors. A full price now makes it hard to see MBK teeing up a high return.
Trump can make or break global growth hopes 28 Nov 2016 Tax cuts and more spending in the United States could help lift world growth to 3.6 pct by 2018, the OECD reckons. But President-elect Donald Trump could reverse the boost with protectionist policies. The rosy scenario rests on shaky assumptions about international cooperation.
Record KKR buyout is fresh sign of changing Japan 22 Nov 2016 The U.S. investor plans to buy Nissan-backed Calsonic for about $4 bln. It has already persuaded other Japanese bluechips to shed non-core businesses. Still, this is both bigger and falls within the sacrosanct auto industry. That highlights a sea-change in Japanese attitudes.
KKR burnishes establishment credentials in Japan 21 Nov 2016 Buyouts are nearly taboo in Japan and blue chips hate selling non-core businesses. So KKR's 2013 purchase of Panasonic Healthcare broke new ground. Now Mitsui, a pillar of Japan Inc, has sunk $500 mln into the healthcare firm. That further validates KKR's collaborative approach.
Review: A prophet for the age of endarkenment 18 Nov 2016 John Gray foresaw the Trump era. "Enlightenment's Wake", published in 1995, predicted that grand ideas would be replaced by ethnic and religious conflict, authoritarian regimes and great power rivalries. Still, the newly-relevant book offers some hope for despairing liberals.
Bank of Japan gets serious on yield-curve control 18 Nov 2016 The Bank of Japan has put its new framework into practice for the first time, offering to buy unlimited amounts of short-term bonds to shield Japan from rising global yields. The BOJ may end up buying huge amounts to counter a selloff, or underwrite a government spending spree.
Trump win creates multiple headaches for Japan 10 Nov 2016 The yen and Japanese stocks whipsawed after the U.S. presidential election. At least for now it looks as if Tokyo will be spared a painfully strong currency. That still leaves the challenges of rising protectionism, economic uncertainty and a weaker U.S. commitment to the region.
Few winners in Asia from Trump’s shock victory 9 Nov 2016 Rising protectionism and a weaker commitment to regional security are particularly worrying for South Korea, Japan and Taiwan. But heightened uncertainty could hit economies and markets across the continent. At least for China trade losses may be offset by geopolitical gains.
Unblocking DoCoMo’s Tata exit is New Delhi’s job 4 Nov 2016 Turmoil at the Indian group was fueled by Ratan Tata's wish to pay the Japanese telco $1.2 bln it is owed for its stake in a JV. But retroactive regulations make honoring the payment illegal. A wily workaround would add to governance concerns. Policymakers need to fix the rules.
Valeant sale epitomizes new CEO’s dilemma 1 Nov 2016 Selling the Salix unit for $10 bln would be Joseph Papa's first big move since taking the reins. It would help pay down the drug giant's whopping debt. But it would also reduce desperately needed future cash flows. Papa needs to prove he can do more than preside over a fire sale.
Bank of Japan sits back for Clinton-Trump ride 1 Nov 2016 The central bank kept policy unchanged, even as it trimmed inflation forecasts. Adding extra stimulus just one meeting after introducing a new, yield-focused framework would look panicky. The BOJ also needs to keep something in reserve for upsets like a U.S. election shock.
Container ship M&A crashes into sceptical market 31 Oct 2016 A three-way Japanese merger will create a new industry heavyweight. Yet investors are ignoring the promised $1 bln of annual savings. Even aggressive consolidation plans, it seems, are not enough to convince the market that battered shipping firms can get back on an even keel.