Consumer Products and Services

China’s viral immune system open to economic pox

21 January 2020

A bungled swine flu cover-up doubled pork prices last year, taxing the poor. Now a human virus is panicking citizens before the start of what’s usually a $150 bln holiday spending boom. President Xi’s anti-corruption campaign has made officials less venal, not more credible.

Vodafone’s India demise would cause wave of pain

17 January 2020

Shares in the telco’s local unit plunged 25% after a court dismissed a plea to review $7 bln of levies. The government could accept delayed payment, still leaving Vodafone Idea with a heavy burden. The alternative, bankruptcy of the big brand, will hit a fragile economy hard.

China’s reform camp high-fives Wall Street

16 January 2020

The most substantive part of Beijing’s trade deal is the commitment to open its financial sector. Combined with other liberalisations, local institutions face real U.S. competition. That should reduce the credit misallocation that irks trade partners and warps economic growth.

Consumer wallets are top risk to chip titan TSMC

14 January 2020

A heady valuation multiple for Taiwan's $295 bln supplier to Apple, Huawei and others reflects its relentless march on rivals. Rising retail prices for ever-fancier smartphones, though, may curb demand. That’s possibly the biggest risk for the tech supply chain’s sturdiest player.

Plane woes cast doubt on Beijing’s DIY tech plan

14 January 2020

The C919, intended to compete with Airbus and Boeing commercial jets, is behind schedule and riddled with problems despite vast state support. China’s plan to replace foreign hardware and software with local versions may struggle to take off for similar reasons.

Geely’s European car collection is too eccentric

13 January 2020

The Chinese rescuer of Lotus and London black cabs might inject funds into Aston Martin, James Bond’s favoured ride. Founder Li Shufu had some success with Volvo, but with his home market under pressure, becoming a collector of genteel money-losers is an unwelcome distraction.

Casper IPO little better than cash in the mattress

10 January 2020

After investors snubbed WeWork’s over-complex IPO, here’s something simpler: a company that sells beds online. The trouble is that the “sleep economy,” while easy to understand, is littered with corporate nightmares. And regrettably, Casper shares WeWork’s penchant for claptrap.

UK grocery war will be fought on more than prices

9 January 2020

Tesco’s local sales barely rose over the festive period. Like other big peers, the 25 bln pound company lost market share to discounters such as Lidl. Improving online services and stocking sought-after premium goods may do more to halt the rot than selling products more cheaply.

China’s Ucommune may have missed WeWork IPO memo

9 January 2019

The country's biggest shared-office outfit is gearing up to go public after its U.S. peer flamed out. A $2.6 bln private valuation implies a similarly punchy 13 times estimated sales. And like WeWork, Ucommune rents from its entrenched founder. A down-round or worse probably awaits.

Samsung signals memory-chip cycle’s new normal

8 January 2020

The South Korean group ended 2019 with a 34% slump in quarterly operating profit. With fewer rivals, prolonged downturns are less of a worry; supply cuts hint at an unusually quick recovery. Samsung can focus on innovation and curbing added risks of pricing power.

Hong Kong poised to reclaim IPO crown

6 January 2020

It has been a decade since the Asian financial hub beat the Big Apple in new equity issuance. Violent protests are a challenge, but Alibaba provided some reassurance. The U.S. backlash against China and a stable of mainland unicorns will help make Hong Kong No. 1 again in 2020.

HSBC’s Hong Kong headache looks like its worst

3 January 2020

Demonstrators vandalized bank branches after police froze a protest-related account. HSBC earns over half its profit in the former British territory, so boycott threats and the current recession are big risks. With Beijing on his back, interim CEO Noel Quinn has few good options.

Mukesh Ambani’s empire will be cast in fresh light

2 January 2020

India’s richest man can reap two big benefits from carving up his sprawling Reliance Industries. First, he would fulfill a promise to make the $130 bln oil-to-telecom conglomerate almost free of debt. It also should help achieve a higher, tech-like valuation from investors.

A health craze for 2020: Chinese medicine

2 January 2019

A locally-developed cancer therapy from the People's Republic has won U.S. approval for the first time. For pharmaceutical giants, discovering a made-in-China blockbuster drug may be within reach. Cross-border deals will follow, as will some unexpected side effects.

Carlos Ghosn jailbreak is all-purpose face saver

31 December 2019

The former car CEO has turned up in Lebanon. How he got out of house arrest in Japan is unclear but it could wind down an uncomfortable diplomatic affair. Nissan and Renault can move on. Japan’s judicial system avoids scrutiny. Ghosn swaps his cultivated martyr image for freedom.

Best of Breakingviews: What you read most in 2019

31 December 2019

Deals dominated the most-clicked stories for the year, while spats over everything from cars to comedy classic “Friends” made it into the top ten list. Graphics and a punk politico punched above their weight too. But an Indian tycoon and GE’s surprise whistleblower beat them all.

Soccer giant will field Chinese star to kick sales

30 December 2019

Super-clubs like Manchester United and Real Madrid need new revenue streams as growth from the traditional pay-TV cash cow slows. In 2020, a top team will look to boost merchandise and sponsorships in a huge market by fielding a sub-par Middle Kingdom athlete.

Buy now, pay later faces Juul-style backlash

24 December 2019

Companies offering the credit innovation say it can drive online sales and help retailers deal with refunds. One player, Klarna, is valued at $5.5 bln. But making it a lot easier to shop for free could prompt a reaction like that which befell the vaping heavyweight.

Unilever boss needs to channel his inner activist

17 December 2019

The consumer goods giant warned sales in 2019 will grow less than 3%. CEO Alan Jope blames weakness in countries like India, but the miss heaps pressure on him to turn around the sprawling business. Setting out clear targets for dumping sluggish food brands would be a start.

Haier’s Hong Kong rejig could help clean house

17 December 2019

The world’s top appliances maker wants to take an $8 bln subsidiary private via share swap. The deal would streamline the group’s structure and free up $2.4 bln in cash for the indebted parent to play with. For all these neat benefits, shareholders could demand a premium price.