Renault’s Nissan silence undermines grand revamp 8 Nov 2022 The 9 bln euro carmaker will spin off its electric vehicle unit and partner with China’s Geely on combustion engines. But, while unveiling his strategy in Paris, Luca de Meo remained mum on his Japanese partner. Governance uncertainty makes the complex plans even trickier.
Bank of Japan fiddles while bond market burns 31 Oct 2022 The yen is one of the world’s most popular funding currencies, but the central bank’s struggle to prop it up and hold interest rates down is tipping fixed-income traders into revolt. Policy tweaks might help, but passivity puts the yen’s global stature at risk.
Toyota’s new, new EV plan suggests smarter driving 25 Oct 2022 The $218 bln Japanese automaker is mulling its third electric-vehicle reboot in 13 months as rival Tesla leaves it in the dust. Frequent rejigs can mean bigwigs are flailing for ideas. But Toyota’s latest overhaul implies boss Akio Toyoda is addressing missteps with more speed.
Nissan’s Renault reorg will drive capital raise 12 Oct 2022 The Japanese automaker would drain almost half its $10 bln cash pile if it buys back stock from its French partner and invests in its EV unit. But slow growth and a $14 bln pledge for Nissan’s own electric plans mean CEO Makoto Uchida will have to ask investors to chip in.
Renault, Nissan messy breakup is least-bad option 10 Oct 2022 Signs that the $9 bln carmaker might cut a 43% stake in its Japanese partner hiked its share price. Renault CEO Luca de Meo’s gambit could mean more EV investment, but the French state would have to OK any reduction in its influence. Still, Renault has few good alternatives.
Best destination for SoftBank’s Arm IPO is nowhere 7 Oct 2022 Boss Masayoshi Son would prefer to list the chip designer, now probably worth around $20 bln, in the United States. The UK government hopes to lure it to London. Valuations may not differ that much. But cooling chip sales and choppy markets mean SoftBank would be wiser to wait.
Tokyo blinks in game of forex chicken 22 Sep 2022 Japan has responded to the Federal Reserve’s rate hikes by moving to prop up the staggering yen, the first intervention since 1998. The country’s economy and Bank of Japan Governor Haruhiko Kuroda’s loose policy make it unlikely the plan will work. The attempt may even backfire.
Nissan’s Ashwani Gupta on the need for speed 20 Sep 2022 The arrest and escape of former Chairman Carlos Ghosn in 2019 put a harsh spotlight on the Japanese auto giant. Covid and inflation have added pressure since. In this episode, Nissan’s COO talks to Pete Sweeney about electrification, fast cars and turning the business corner.
Bank of Japan needs to pick yen battles carefully 15 Sep 2022 The central bank is signaling it may soon intervene as its currency hits 24-year lows. Slowing rather than reversing the U.S. dollar’s rates-driven strength may be achievable, but even that demands a cannier deployment of weaponry than just throwing money at the problem.
Capital Calls: Lululemon stretches inventory logic 2 Sep 2022 Concise views on global finance: The $41 bln company raised annual profit and revenue forecasts, but is a little too relaxed about its growing stockpiles of yoga gear.
Capital Calls: Crypto fans, Disney’s magic bundle 1 Sep 2022 Concise views on global finance: MicroStrategy founder Michael Saylor is enthusiastic about bitcoin, and its “freedom and self-sovereignty”. A lawsuit over his alleged tax avoidance shows digital limits. Meanwhile, Disney looks to channel the synergistic Force.
Capital Calls: Saipem’s new CEO 31 Aug 2022 Concise views on global finance: The hard-hit Italian energy services company appointed Eni veteran Alessandro Puliti as chief executive.
Do hybrid vehicles help or hurt the environment? 25 Aug 2022 Automakers like Toyota still favour cars that run on both batteries and fossil fuels. In this Viewsroom podcast, Breakingviews columnists debate whether this is smart given shoddy power grids and rising cell costs, or a dangerous distraction in the battle against climate change.
Japan’s sober youth gives its brewers a headache 19 Aug 2022 A decline in drinking among the country’s young has driven the national tax agency to try to boost alcohol’s popularity. No wonder Asahi boss Atsushi Katsuki is eyeing the U.S. market. Yet previous overseas adventures by Japanese booze giants make for a sobering read.
SoftBank’s Alibaba sale could end breakup taboo 10 Aug 2022 Masayoshi Son’s group will cut its stake in the Chinese e-commerce giant to 15% from 24%. It’s a sensible, albeit belated, move. The holding contributes to a 55% conglomerate discount, which would be narrowed further by spinning off Arm and selling more of its Japanese telco.
SoftBank chagrin is poor defence against bad bets 8 Aug 2022 The Japanese investor suffered a $23 bln net loss from falling markets and a weak yen. Boss Masayoshi Son says he has learned lessons. But exiting ride-hailer Uber with a 5% annual return supports the view of SoftBank as a firm that can only follow, not outperform, the crowd.
Japan’s post-Abe future, Europe’s currency problem 14 Jul 2022 The assassination of former Prime Minister Shinzo Abe is an end of an economic era. In this Viewsroom podcast, Breakingviews columnists debate how his party’s success could bring about big spending. Also, the euro’s decline is a problem for central bank chief Christine Lagarde.
SoftBank’s Fortress sale calls for an interloper 13 Jul 2022 The Japanese tech conglomerate may sell the asset manager to Abu Dhabi’s Mubadala wealth fund. The mooted price tag of over $1 bln looks embarrassingly cheap. SoftBank’s recent investing mishaps, like Klarna, should make boss Masayoshi Son open to a higher offer.
Japan’s Kishida inherits growing China headache 11 Jul 2022 The Prime Minister’s party increased its majority in Sunday’s election after former leader Shinzo Abe was shot. It’s now easier for Fumio Kishida to crank up defence spending and attack waning competitiveness. The former will anger China’s leaders; the latter will amuse them.
Shinzo Abe’s assassination leaves Japan undone 8 Jul 2022 The polarising politician who dragged the country out of decades of deflation was gunned down in the street on Friday. His Abenomics agenda will outlive him, as most of the challenges he tried to solve endure. Without Abe’s charisma, however, tackling them may get harder.