Japan’s carmakers are passengers in wild FX ride 5 Jul 2016 Shares in Toyota, Nissan, Honda and others have crashed since Britain voted to quit the EU. All will be hit by an economic slowdown, and some would suffer from new tariffs on UK-made vehicles. But the selloff mostly reflects how exposed the firms are to currency-market swings.
Japan’s chat app IPO is more Twitter than WeChat 1 Jul 2016 Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.
In-market M&A goes off-script in Japan 29 Jun 2016 Combining with a local peer shouldn't be too hard. Not so with Japanese refiners Idemitsu and Showa. Idemitsu's top backer thinks the group, which is close to Iran, should avoid Saudi-backed Showa. The concerns look overblown – and waiting a year to air them is downright bizarre.
Japan could use British fallout as spur for action 27 Jun 2016 Market ructions are once again undermining Japan’s economic revival. That could help drive bolder reform, more state spending and looser monetary policy. Officials could even resort to selling yen. Amid so much uncertainty, though, it would be wise to keep some powder dry.
SoftBank’s mixed signals prevent market upgrade 22 Jun 2016 The Japanese group has shown it can sell winners and tackle debts, with an $18 bln blizzard of selloffs. But botched succession planning tightens founder Masayoshi Son’s grip. The group’s sprawl, problematic core holdings and grand ambitions mean investors will remain wary.
SoftBank’s long-term plan abruptly cut short 21 Jun 2016 Heir apparent Nikesh Arora is quitting after Masayoshi Son opted to keep the reins at the Japanese tech group. In just two years, the ex-Googler was paid over $200 mln and spent billions. The succession mess leaves SoftBank and its mercurial founder as hard to read as ever.
Sickly Lotte IPO reflects two faces of South Korea 13 Jun 2016 Seoul may be Asia’s coolest destination right now, and Lotte Group’s flagship duty-free arm ought to profit handsomely. But raids have derailed the unit’s $4.5 bln listing and drawn attention to Korea’s uglier side: its powerful, opaque and poorly governed conglomerates.
Line listing sends awkward message about chat apps 13 Jun 2016 Japan’s top messaging app wants to float at a $5.5 bln valuation, down from $10 bln in 2014. Line has specific issues like slowing user growth. But its big problem is only a small minority of users will pay for services. That could affect Facebook and Tencent’s chat apps too.
Tencent can win with a $9 bln bet on Supercell 10 Jun 2016 The Chinese web giant is reportedly talking about buying the maker of Clash of Clans at an unexpectedly high $9 bln valuation. Such a big deal would be a first for Tencent. But buying the games-maker from Japan’s SoftBank could pay off - if Supercell can keep churning out gems.
SoftBank’s Alibaba selldown is elegantly coded 5 Jun 2016 The Japanese group has raised $6.6 bln by selling securities that swap into shares in the Chinese e-commerce giant. The transaction looks fiddly – but allows SoftBank to navigate U.S. securities laws while keeping some upside. Close links with Alibaba were also crucial.
Japan’s fiscal arrow ought to target young and old 5 Jun 2016 Prime Minister Shinzo Abe is preparing a stimulus that may include vouchers for creches and help with caring for the elderly. That could lure more women into the workforce while also boosting spending. Ultra-low interest rates can help speed the social change Abe has promised.
Japan is right to choose growth over higher taxes 1 Jun 2016 Prime Minister Shinzo Abe’s decision to delay a planned consumption tax increase is a sensible gamble. While the budget deficit may now fall more slowly, a hike could have jeopardised growth. This would have posed an even bigger risk to the long-term health of public finances.
G7 pact offers minimal cover for Abenomics reset 27 May 2016 Shinzo Abe’s plan to revitalise Japan needs a boost. The PM didn’t get as much backing as he might have liked from hosting the club of rich nations. But he may just about be able to spin the summit statement as an endorsement of fiscal stimulus and a tax standstill.
Sony’s lowball forecasts are oddly reassuring 25 May 2016 Shares rallied despite a profit outlook that fell below expectations. Setting $1 bln of quake damage aside, the Japanese group is faring well. Consoles are humming along, handsets are stabilising, and a duff project has been nixed quickly. Sony’s turnaround is almost complete.
Toyota, VW jump on cartech desperation bandwagon 24 May 2016 The Japanese automaker’s deal with Uber and its German rival’s with Gett come after GM invested in Lyft and Fiat Chrysler hooked up with Google. Each can learn from the other, but the technologists see opportunity while the manufacturers have more to fear about their fate.
Supercell sale would mark reboot for SoftBank 24 May 2016 Chinese giants are reportedly circling the SoftBank-owned developer of mobile gaming hits like Clash of Clans. A $5 bln-plus sale would seal a good return. It would also suggest President Nikesh Arora is making SoftBank more disciplined about selling, as well as buying, assets.
Takata’s funding drive will be a hard sell 23 May 2016 The Japanese auto-parts maker wants financial help to ride out its air-bag recall crisis. A few turnaround investors and industry peers will probably look. But huge unanswered questions about liabilities, prospects, and relations with big carmakers make clinching a deal tricky.
India cushions Suzuki Motor from dodgy test damage 18 May 2016 Like rival Mitsubishi, the Japanese carmaker has spooked investors by admitting it ran unorthodox mileage tests. By Suzuki’s account, the violations sound less serious. In any case, much of its value is tied up in Indian subsidiary Maruti. That limits the risks to shareholders.
Abenomics has over-promised and under-delivered 17 May 2016 Shinzo Abe has spent more than three years pushing for higher growth, faster inflation and a nimbler economy. But success eludes the Japanese prime minister, who has been too timid with the public purse. Keeping the project going calls for extra spending and even easier money.
Nissan heads for racy returns at Mitsubishi Motors 13 May 2016 The Japanese carmaker’s $2.2 bln investment could prove doubly lucrative. With just a modest uplift in sales and margins at its scandal-hit peer, the stake could generate a fat 14 pct-plus return. Meanwhile Nissan is targeting a hefty $440m-plus of annual synergies for itself.