Manufacturing

Bull market lets activists see virtue in passivity

26 January 2018

Bill Ackman, who lost his fight with ADP, has taken a stake in Nike but isn’t pushing for change. Dan Loeb sat back as Honeywell’s new boss ignored his advice and beat his targets anyway. Even pushy hedge funds can be tempted to simply ride the waves when a rally lifts all boats.

Hohn’s LSE/U.S. mashup is tantalising but tricky

26 January 2018

After a failed boardroom coup, hedgie Chris Hohn reckons the $20 bln London Stock Exchange could be bought by a U.S. rival, according to Sky. A deal with, say, ICE, would create savings and scale in derivatives clearing. But the latter could prompt the UK government to object.

Make in India clashes with America First in Davos

23 January 2018

Narendra Modi and Donald Trump share strongman characteristics and both have a zero-sum approach to trade. The Indian premier needs to boost manufacturing just as the U.S. president wants to do the same. The Asian nation has the most to lose if it fails to realise its vision.

Bitcoin’s siren song could send TSMC off course

18 January 2018

Surging demand for processors used in mining digital tokens boosted results at the world's top contract chipmaker. That helps make TSMC less dependent on smartphones. When the $210 bln giant plans future investment, though, placing big bets on crypto-currency would be foolish.

Ex-Im revives just as it’s least useful

19 December 2017

A Senate committee rejected the nomination of Scott Garrett, a vocal critic, to lead the bank. It’s a sign that Ex-Im is bouncing back from its nadir in 2015. But with the economy roaring and tax cuts coming, the result may be mostly a small stimulus for big firms like Boeing.

Fossil-fuel slowdown spreads pain at GE and beyond

7 December 2017

The conglomerate is laying off 12,000 people in a power division that lights up 30 percent of the world. It blamed overcapacity amid a shift from coal and gas to renewables. Other divisions closely tied to fossil fuels are also ailing. GE’s woes suggest a wider shakeout ahead.

Microchip boom short-circuits Singapore’s growth

28 November 2017

Revised GDP revealed a surprisingly strong 5.2 pct quarterly lift for the city-state's $300 bln economy. As in other parts of the world, however, the expansion has yet to power wages or jobs. Cyclical semiconductor output flatters the figures and warrants investor caution.

Emerson’s tilt at Rockwell lacks killer blow

31 October 2017

The rejected $28 bln offer for the U.S. automation group represents a premium of just 15 pct, paid partly in stock that has systematically undershot Rockwell’s. With valuations high, an all-cash bid might have tested the target’s independence. That looks beyond Emerson’s means.

Tesla could hit second gear with Shanghai factory

22 October 2017

Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.

Daimler’s reform drive lacks horsepower

20 October 2017

Bumper third-quarter sales do little to address the Mercedes parent’s long-term problems, which include a margin-sapping global shift to electric vehicles. Plans to split in three would lift valuations if that led to a separate listing. But progress is at walking pace.

iPhone boost is prelude to bumper year for TSMC

19 October 2017

Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.

Japan is developing a quality-control problem

10 October 2017

Kobe Steel admits it sold substandard metals to hundreds of clients. After Takata’s lethal airbags and testing scandals at various carmakers, this is yet another blemish on Japan’s reputation for product quality. Something is going badly wrong with corporate cultures.

Ford’s clever electric van plan in China

4 October 2017

The U.S. carmaker is changing course in China, insiders told Reuters, as sales slow. New state policies open an opportunity for Ford to build electric commercial vehicles. That could help meet quotas - and electrify Ford SUVs. Much depends on the partner, and battery supply.

Rivals circle Taiwan’s TSMC in new chip era

3 October 2017

Morris Chang, father of Taiwan's chip sector, is retiring at 86. His successors were groomed for years to take over the $189 bln behemoth Chang founded three decades ago. They'll need to work hard to defend TSMC's dominance against Samsung and rising mainland competitors.

Trump’s new Democrat friends put China on notice

26 September 2017

The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.

Guest view: Tax relief made for U.S. manufacturers

5 September 2017

President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.

VF stitches up signature deal for the MAGA era

14 August 2017

The North Face owner is dropping $820 mln for Dickies, a maker of apparel for manufacturing and construction laborers. It gives VF a strong position in the workwear marketplace, which Donald Trump has promised to revitalize – or at least a hedge against fashion's fickleness.

Infrastructure-services merger owes Trump little

2 August 2017

Shares of engineer Jacobs popped when the U.S. president was elected in November. They’ve since faded along with hopes of heavy government spending. The company’s $3 bln combination with water expert CH2M may have some domestic benefits, but Jacobs’ bet looks more global.

Foxconn’s U.S. move sends false reshoring signal

27 July 2017

The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.

U.S. Steel forges best argument against trade war

26 July 2017

Rising demand and restrained imports led to blowout earnings at the $4.7 bln steelmaker. While management's hopes for tariffs on bogus national-security grounds are receding, investors are better served by a focus on upgrading high-cost production over protectionist lobbying.