Sony on the road to reclaiming its electronic mojo 4 Feb 2020 Quarterly operating profit fell 20%, to $2.8 bln, but exceeded expectations. Its image sensors used in iPhones helped and boss Kenichiro Yoshida is now eyeing autonomous cars. Wise investment could put the inventor of the Walkman and Trinitron TV back in the tech driver’s seat.
For Macau investors, all bets are off 4 Feb 2020 The territory is closing casinos for two weeks to contain the virus. Visits to Sands and rivals may be postponed, not lost, but only a real gambler would double down on Macau now. Home entertainment from the likes of iQiyi, China Literature or Perfect World offer better odds.
Epidemic impact will simulate China mini-recession 4 Feb 2020 The virus is eating into consumer spending. As restaurants lay off cooks and property developers default, local governments and banks will be stressed. Growth will stay positive, but for a generation that hasn’t experienced a downturn, this one might feel like the real thing.
Xi’s market watchdogs get black swan for new year 3 Feb 2020 The benchmark index fell 9% as traders returning after a week-long holiday dumped stocks on coronavirus concerns. The slide may be hard to brake; Beijing’s stimulus options are constrained. Finance regulators, restructured after the 2015 crash, face a major credibility test.
Hong Kong’s new banks will move fast, break things 3 Feb 2020 The city’s first digital-only bank, backed by insurer ZhongAn, is paying around 6% deposit interest. Similar promotions may come from newbies backed by Ant, Xiaomi, and others. The aggressive entrance suggests incumbents may lose revenue share fast to rich upstarts.
Chinese virus will afflict ailing globalisation 31 Jan 2020 Trade wars and Brexit-type barriers have knocked worldwide integration. As the Wuhan coronavirus spreads and borders harden, companies have fresh reasons to rethink the merits of cross-regional businesses and supply chains. A rise in security-based protectionism can be expected.
Will IBM be the next Microsoft or Nokia? 31 Jan 2020 Arvind Krishna is to succeed Virginia Rometty as CEO. Investors won’t miss her: Big Blue’s value almost halved on her watch. Attempts to make struggling tech firms shine again can fall flat, as Nokia can attest. But Microsoft’s rise under Satya Nadella may give Krishna hope.
Private equity can sweeten Unilever’s tea business 30 Jan 2020 The consumer giant is weighing a full or partial sale of slow-growing brands such as Lipton and PG Tips, which represent 6% of sales. Paying down debt is not a priority. CEO Alan Jope may be better off teaming up with a buyout fund, as Nestlé did with its ice cream joint venture.
Mario Kart puts Nintendo on track to mobile riches 30 Jan 2020 Smartphone hits including one featuring the Japanese company’s iconic plumber racing on wheels accounted for just 3% of its $5 bln in quarterly sales. That may soon change, as Nintendo charges for subscriptions and in-game prizes. Steady mobile profit and a valuation boost await.
Tata test-drives conglomerate power 30 Jan 2020 Various companies in the $160 bln Indian empire are uniting to support an electric-car initiative. In theory, it should give Tata Motors an edge over Western rivals forced to find outside partners. If it all works in practice, it could deliver rare and valuable synergies.
Victoria’s Secret deal has more demons than angels 29 Jan 2020 Parent company L Brands may be the next retailer to try to save itself with deal magic by flogging its floundering lingerie brand. Gap just nixed spinoff plans while J.Crew is angling to IPO Madewell. Retailers hoping to be saved by shuffling the shelves will be sadly mistaken.
Apple investors cook up complacent valuation 28 Jan 2020 The $1.4 trln tech giant consistently squeezes more juice out of a mature smartphone market. Its price-to-earnings ratio has nearly doubled in a year, closing on Facebook and Alphabet. In part that’s overdue, but Apple is also the most exposed to risks in China.
Nelson Peltz plays important second fiddle at P&G 23 Jan 2020 Shares in the $315 bln consumer-goods company have jumped 36% since the activist snagged a seat on the board. But P&G’s success stems from plans CEO David Taylor had already put in motion. Encouraging execution, rather than offering new ideas, is working out fine so far.
China’s viral immune system open to economic pox 21 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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.