Japan’s auto giants could ignite hydrogen hype 9 Feb 2021 Tokyo is backing fuel-cell-powered vehicles to help cut emissions. It’s reminiscent of China’s early support for electric cars. As then, commercial success will depend on official subsidies. But unlike startups, Toyota and Honda have the tech and funds to enjoy a smoother ride.
SoftBank asset gains push focus to its firepower 8 Feb 2021 Markets have been kind to Masayoshi Son, helping the Japanese firm he leads log big gains from revaluations. Shares have hit a 20-year high. A bigger commitment to buybacks and detailed plans for its $42 bln-and-growing cash pile could provide a lift beyond the current frenzy.
Thai beer float needs market fizz for top value 8 Feb 2021 Thai Beverage’s move to float 20% of its brewing business has strong echoes of the 2019 IPO of Budweiser’s Asia unit. To reach a mooted $10 bln equity value, it will need to match a bubbly valuation too. But it’s less profitable and Singapore listings aren’t known for froth.
Hong Kong retail mania one-ups U.S. short squeeze 5 Feb 2021 Kuaishou shares nearly tripled on their $5.4 bln debut. One in four working-age Hong Kongers bid for a stake in the Chinese video app, putting up $162 bln. Dubious rallies without organised campaigns like GameStop’s provide stronger evidence of a frenzy getting out of hand.
Japan’s largesse cuts big banks much-needed slack 5 Feb 2021 Lower credit costs helped Mitsubishi UFJ and Mizuho post better than expected earnings. Thank government stimulus, not least for slowing bankruptcies. With the central bank able to offer just token help, it’s the only relief on hand for the country’s long-suffering lenders.
Corona Capital: McKinsey/opioids, Bumble IPO 4 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: Consulting firm McKinsey settles over its role in the U.S. opioids scandal; and dating site Bumble boss Whitney Wolfe Herd looks smart to be holding back in the company’s initial public offering.
It’s time HSBC’s big bosses followed the money 4 Feb 2021 The $108 bln bank may relocate the co-heads of its investment bank to Asia. There are good excuses for many financial services giants to avoid putting global chiefs in Hong Kong or Singapore. Given HSBC’s dependency on the region, however, it’s a wonder it has taken so long.
China property credit crisis drags in Ping An Life 4 Feb 2021 China Fortune Land Development's $814 mln of overdue loans have local officials warning its collapse could create systemic risk. Over 200 financial institutions are involved. Beijing might let CFLD serve as a warning, unless the life insurance giant steps in to save its stake.
Digital coins could dull Macau’s bling 3 Feb 2020 Mobile payments quintupled in the gambling hub in 2020, and digital currency might be introduced soon, helping watchdogs monitor money flows. Players might not like that idea, especially wealthy clients and tax dodgers. VIP haunts like Galaxy and Wynn are particularly exposed.
New Panasonic engineers leaner, meaner machine 3 Feb 2021 Cutting costs and dud assets boosted the $32 bln Japanese giant’s operating profit 30% in the first months of its overhaul despite pandemic-subdued sales. An electric-car boom will help the Tesla supplier’s top line, too. That gives incoming boss Yuki Kusumi room to manoeuvre.
Alphabet risks losing sight of ABCs of search 2 Feb 2021 Google’s parent posted a 23% bump in quarterly revenue and growth recovered in its search-ads cash cow. But it’s losing share to Amazon, and competitors like Facebook are a growing threat. Rivals are also under political pressure but Google’s problems make it harder to ignore.
Subdued Alibaba offers shoppers discount on self 2 Feb 2021 Quarterly sales at its commerce unit jumped 38% to $30 bln, showing the Chinese giant is still a formidable force despite regulatory woes. Most importantly, the cloud business turned an adjusted profit for the first time. Even if growth slows later, the business looks cheap now.
Nintendo could reach next level in two-player mode 1 Feb 2021 Millions of homebound gamers helped drive quarterly operating profit up 36% to $2 bln. Despite hit franchises like Super Mario, the Japanese company depends on its Switch console, whose sales are peaking. Teaming up with partner Tencent in mobile would unlock steadier earnings.
Myanmar all but fades from investment frontier 1 Feb 2021 Military detentions of Aung San Suu Kyi and other ruling party figures represent a dark turn for a once-bright opportunity. An economy that lured tourists and foreign companies such as Kirin may be headed back to isolation. Recovering again will be a painstaking process.
India Insight: Amazon has plenty to fight for 1 Feb 2021 The e-commerce titan led by Jeff Bezos is trying to stop the sale of a big-box retailer to Mukesh Ambani’s Reliance. The spat centres on a disputed contract. An Amazon victory could cost thousands of jobs. The business itself may be less important than the message being sent.
Robinhood free lunch was never really free 29 Jan 2021 The online broker’s restrictions on trading of stocks like GameStop look at odds with its mission to democratize finance. Yet Robinhood’s rush to raise cash shows that there’s a side to zero-cost trading that users don’t see. Safe trading costs money, one way or another.
Shaky electric-car maker zips into market mania 29 Jan 2021 Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.
Pain of China’s bad holiday will be widely shared 29 Jan 2021 Fresh Wuhan-style lockdowns have been imposed ahead of the Lunar New Year break, a week-long spending boom. Less travel may reduce disruption for factory owners but it’s a blow for already weak consumption. A subdued getaway will exacerbate the imbalances of China’s recovery.
China creates a bigger consumer credit mess 28 Jan 2021 Beijing needs institutions that measure individual default risk. Given thin credit histories at banks, it wants fintech giants like Ant to hand over valuable data to state-run firms with fuzzy business models in exchange for equity. That’s no way to build a sustainable system.
Apple’s new golden goose is at risk of plucking 27 Jan 2021 The $2.4 trln tech group made $15.8 bln in revenue from services last quarter. If growth keeps up, subscriptions and such could be more profitable than the iPhone within a few years. It's also where Apple is most vulnerable to antitrust pressure from regulators and customers.