Saudi’s sweet debt deal could rebound on banks 21 Apr 2016 The kingdom is close to its first international debt deal in 25 years to plug a hole in its finances caused by weak oil prices. Vast oil reserves make Saudi debt enticing, but the price slump is changing the game in several ways. And Middle East states have defaulted before.
Mitsubishi is distant second in emissions cheating 20 Apr 2016 Despite tight scrutiny of regulators and environmentalists since “Dieselgate”, it took seven months for another carmaker to get caught manipulating emissions data. For now, the scope of Mitsubishi Motors’ misconduct appears smaller. VW seems really to be in a cheat league of its own.
Japan Inc would gain by fixing M&A sights on home 20 Apr 2016 Bosses have been busy buying abroad. But often it makes more sense to consolidate fragmented domestic industries. With Japanese firms under pressure to become better-run and more profitable, a recent string of tie-ups could signal the start of a more investor-friendly deal spree.
After tourists, Japan could open doors to workers 15 Apr 2016 Chinese holidaymakers are leading a boom in foreign visitors. Premier Shinzo Abe reckons numbers could double again to 40 mln by 2020. The extra demand is great for a sluggish economy. The influx could also help promote immigration as a way to tackle acute labour shortages.
Deals can help Japan’s banks offset dollar drought 13 Apr 2016 Mega-banks MUFG, SMFG and Mizuho are making new loans abroad faster than they can amass matching deposits. This headache has boosted the cost of swapping funds from yen to dollars, and made regulators in Tokyo wary. Buying smaller U.S. lenders would help reduce the mismatch.
Nomura belatedly starts to pick its battles 12 Apr 2016 Japan’s top broker is cutting back in Europe and the U.S. Tough markets have amplified overseas weaknesses and forced it - like European rivals - to choose its specialist subjects more carefully. That does nothing to fix the long-term challenge of being dependent on Japan.
Uniqlo’s plans to dress the world no longer fit 8 Apr 2016 Fast Retailing’s value has halved since August to $26 bln. Founder Tadashi Yanai blamed awful first-half results on everything from warm weather to the rising yen. Reaching his goal of creating the planet’s No. 1 brand will require much better execution no matter the headwinds.
Stronger yen heightens pressure on Bank of Japan 8 Apr 2016 One U.S. dollar now buys less than 109 yen, versus 120 at the start of the year. That is bad news for corporate earnings, inflation, and state finances. Direct intervention would be unpopular abroad. The central bank, already deep in experimental territory, may need to do more.
Cox: Dan Loeb helps one Abenomics arrow hit target 7 Apr 2016 Forget the Bank of Japan’s negative interest rate blunder, or the government’s muddled fiscal policies. Prime Minister Shinzo Abe’s corporate-governance reforms hold the most promise. The pushy investor’s fight with the operator of Seven-Eleven convenience stores offers a useful glimpse.
Hedge funds jam Hitachi’s Italian railway signal 6 Apr 2016 The Japanese company is locked in a feud with some funds, who argue it should pay more for control of signalmaker Ansaldo. Savings worth at least 395 mln euros suggest it can. Italy has started to open markets to foreign bidders – now foreign investors may help police them.
Sharp take-under oddly denotes Japanese success 30 Mar 2016 Foxconn has clinched control of the ailing Japanese display maker for a reduced $3.5 bln. Fixing Sharp will be a tough task for the Taiwanese giant led by Terry Gou. But this historic, if somewhat ugly and complicated deal, is Exhibit A that Japan Inc is capable of reform.
Dell’s Perot sale augurs poorly for EMC deal 28 Mar 2016 The computer company is offloading its consulting arm to Japan’s NTT Data for $3 bln, a quarter less than it paid in 2009. Proceeds from what had been Dell’s biggest acquisition are to help it buy EMC for some $60 bln. The outcome, however, is hardly a good ad for its M&A nous.
Canon’s $6 bln Toshiba deal no picture of distress 18 Mar 2016 The Japanese group is buying its scandal-hit rival’s medical equipment unit, its second big purchase in just over a year. The multiple of 42 times 2015 earnings suggests Canon’s urge to diversify from cameras and printers was even greater than Toshiba’s desire for a quick sale.
Sony-Michael Jackson deal augurs earnings thriller 15 Mar 2016 The Japanese giant will pay the pop singer’s estate $750 mln for its share of their joint venture which owns rights to tunes from Taylor Swift to the Beatles. Sony can then reap all the benefits of the fast-growing streaming market – especially the more profitable older tracks.
Japan index: Modest beginnings for the new year 15 Mar 2016 Our Abenomics Index rose slightly in January compared with the year-end, creeping closer to a 15-year high. Gains in manufacturing production and a slight uptick in loans, consumption and wages helped. But falling stocks and consumer prices were still a drag.
Mobile Mario still key to Nintendo’s revival 29 Feb 2016 The console-maker slashed its earnings forecast, blaming a rising yen and weaker sales of devices and games. Currency is a side issue, though. Nintendo’s future rests largely on tapping the huge mobile-gaming market. It has started slowly but has great characters to play with.
Sharp and Foxconn: the secret CEO text messages 26 Feb 2016 The $4.4 bln rescue of the ailing Japanese group is on hold after its Taiwanese buyer said it could not sign the deal - even after Sharp announced the transaction. Foxconn boss Terry Gou is due to meet counterpart Kozo Takahashi. Breakingviews imagines their exchange.
Sharp deal with Foxconn is a messy milestone 25 Feb 2016 The ailing Japanese group picked a Taiwanese takeover over a domestic bailout. A $4.4 bln equity injection by the iPhone assembler shows Japan’s doors are not always closed to foreign buyers. Offering Sharp many safeguards helped. Now Foxconn has to make this pricey deal work.
Wage restraint hurts Japan’s battle with deflation 22 Feb 2016 Japanese bosses reckon the world is too uncertain for wages to rise much this year. Oddly, the country’s unions basically agree – despite a robust labour market. This is another setback to Prime Minister Shinzo Abe’s efforts to stoke inflation, consumption, and economic growth.
Japan index: Losing momentum 17 Feb 2016 Our index held near a 15-year high in December, underscoring Japan’s turnaround under Shinzo Abe. But this looks increasingly fragile: recent annual gains are among the weakest since the PM took power. Manufacturing and housing are weakening. And market turmoil is a new threat.