Dianrong boss daringly says what many are thinking 19 Mar 2019 Co-founder Guo Yuhang blames the government for slow growth at his peer-to-peer lender. Such regulatory grievances are common from bankers elsewhere, but rare in China. The complaints will strike a chord in the industry even if they don’t alter the course of mercurial rules.
Chinese car lender’s IPO drives a hard bargain 19 Mar 2019 Dongzheng Automotive Finance could be worth $1.4 bln after going public, valuing the company at a big premium to rivals. Its fast growth, high returns and luxury-vehicle focus may justify that. But it’s shifting into new markets and has yet to face the rough ride of a downturn.
Ping An offers up a glimpse of China’s bank reboot 18 Mar 2019 The insurance giant is preparing a $1 bln IPO for OneConnect, a startup offering tech support for mainland lenders, including fancy credit checks. Beijing wants banks to lend more to smaller, private firms, but few can handle the risk. It’s a dilemma that leaves a lucrative gap.
Newell needs a breakup more than a CEO 15 Mar 2019 Boss Michael Polk is retiring after an eight-year orgy of wheeling and dealing. His 2016 Jarden purchase incinerated $10 bln of shareholder value and saddled the group with debt. He has stepped up asset sales under pressure from Carl Icahn, but a full breakup would make more sense.
Self-driving trucks expose Chinese tech gap 15 Mar 2019 Mainland autonomous truck startup TuSimple is hitting the U.S. road, challenging the likes of Waymo and Volvo. Despite support from Beijing, policy contradictions have reduced China’s attractiveness to its own companies, making it a laggard in the self-driving race.
Outside eyes can quell EssilorLuxottica board row 13 Mar 2019 Top shareholder Leonardo Del Vecchio wants protégé Francesco Milleri to run the eyeglasses juggernaut. But he lacks both international experience and director support. A comprehensive, global search would turn up a better boss for the $50 bln group as it faces new challenges.
China’s Starbucks rival pushes its luck 13 Mar 2019 Lu Zhengyao, Luckin Coffee’s chairman, wants a $200 mln personal loan in exchange for a role on the upcoming IPO, Reuters reports. Such hubris suggests the delivery-focused chain, which faces intensifying competition, is overheating. Investors should beware getting scalded.
Korean pop music can dance past boy-band blues 13 Mar 2019 A prostitution scandal rocked hit group Big Bang and sparked a stock selloff for agencies in the $5 bln industry. It's a reminder of how tricky star-driven investments can be. As streaming services like Spotify help export K-pop, though, the companies can hit high notes again.
Meituan Dianping drives itself to distraction 12 Mar 2019 The $42 bln Chinese super-app operator grew fourth-quarter sales by a robust 89 pct. Meituan’s entire valuation is reflected in the strength of its food delivery unit against Alibaba-owned Ele.me. That raises fresh questions about costly ride-hailing and bike-sharing diversions.
Cambodia’s casino king faces new poker hands 11 Mar 2019 Malaysian tycoon Chen Lip Keong is enjoying an extraordinary monopoly in Phnom Penh: his $6 billion flagship group, NagaCorp, grew net profit by more than 50 percent last year. But new rules and an influx of Chinese tourists will inspire upstarts to try their luck too.
Cox: Unilever can’t help but mull a Kraft pounce 7 Mar 2019 The tables have turned since the Cheez Whiz maker bid for its rival. At $40 bln Kraft is worth a quarter of its erstwhile prey. Unilever can afford a deal, export its culture and reap synergies. But Kraft’s portfolio may be a poison pill unless used as a prelude to exiting food.
Kraft Heinz new recipe could start with the board 6 Mar 2019 The $40 bln ketchup maker’s board is stocked with representatives of its main shareholders and has plenty of consumer expertise. But Kraft Heinz has missed a trick. Its rivals have more flavor from other industries. Having disappointed investors, there’s room for fresh insights.
Nio’s right place, right time may be short-lived 6 Mar 2019 Tesla’s Chinese rival is revving up, delivering 11,348 units in its first year. Nio bucked a slowdown in the world’s largest car market thanks in part to sparse competition for luxury electric vehicles. But its net loss nearly doubled, and new rivals are hitting the road in 2019.
LVMH-Pernod bid talk makes for watery cocktail 4 Mar 2019 Ever since activist Elliott showed up at Pernod, Paris has been awash in speculation that LVMH covets the $46 bln spirits group. Adding booze brands like Absolut to its portfolio would dilute LVMH’s luxury profile. Bernard Arnault’s public disavowal of a deal is believable.
Time for Ted Baker to embrace overseas offers 4 Mar 2019 The UK fashion group’s founder Ray Kelvin has left amid an ongoing probe relating to his hugging of colleagues. With the shares down a third in a year and Kelvin still holding 35 pct, Ted Baker could be in play. Chinese luxury players eyeing mid-market brands may come calling.
Moncler’s strength will whet its M&A appetite 1 Mar 2019 The Italian puffer-jacket maker’s 2018 sales grew 18 percent year-on-year, disproving fears it might miss out on the recent spate of strong luxury results. Moncler could become an LVMH-style sector aggregator. A rising net cash position and share price give it greater firepower.
Viewsroom: Warren Buffett eats crow 28 Feb 2019 Kraft Heinz’s poor earnings, $15 bln writedown and accounting investigation forced the Berkshire Hathaway boss to admit he overpaid for the nuts-to-Velveeta cheese purveyor. Breakingviews columnists discuss what went wrong. Plus: Trump buys more time in his China trade spat.
JD’s winding road to profit keeps getting longer 28 Feb 2019 The Chinese e-commerce group’s sales rose by more than a fifth to top $20 bln in the fourth quarter. But heavy investment in new bets means JD is barely breaking even. Financial discipline would help, but may not be enough to counter cooling demand and competition from Alibaba.
AB InBev sets itself an easy target 28 Feb 2019 The Corona brewer pleased investors by unveiling healthy revenue growth and plans to cut net debt to below four times EBITDA by end-2020. The goal is feasible even without a mooted IPO of its Asia unit. Just as well since the company can ill afford big cuts in its marketing spend.
Spotify turns India’s music scene into mosh pit 28 Feb 2019 The $26 bln streaming service will find its newest market loud and unruly. Indians spend more time listening to songs than most, but they pirate more too, making subscriptions a challenge. Spotify will also collide with everyone from Apple to Tencent to Mukesh Ambani’s app.