Unrest is recurring cost of Hong Kong’s stinginess 16 Aug 2019 Since demonstrations rocked the city in 2014, economic roots of dissatisfaction have worsened. Housing prices rose, tycoons’ dominance increased, and officials made token gestures while hoarding fiscal reserves. Today’s protests are political, but inequality feeds the flames.
Nio flashes warning for China’s luxury car market 16 Aug 2019 A co-founder of the $3 bln Tesla wannabe has quit, the latest in a string of departures. It comes after battery fires and other strategic missteps at the electric-vehicle maker. But its woes may also portend slowing premium demand: that should worry peers.
CEO exit leaves HSBC with worrying gap at the top 5 Aug 2019 John Flint has parted company with the Asia-focused lender after 18 months at the helm. The abrupt exit of a veteran banker overshadows decent earnings and a $1 bln buyback. Given mounting uncertainty around Brexit, a trade war and Hong Kong, it's a bad time to be adding more.
Hadas: U.S. slavery reparations might just work 24 Jul 2019 In terms of race, American society remains stubbornly separate and unequal 155 years after abolition. Much of the economy still works as if racial attitudes had not changed. One way to reduce the black-white social gap is a womb-to-tomb campaign of well-targeted incentives.
China’s hardline premier set peak for gigantomania 24 Jul 2019 Former premier Li Peng died on Monday. Infamous for crushing protesters in 1989, he was also known for championing the giant, controversial Three Gorges Dam. China still likes mega-projects, but officials can’t flout financial and environmental concerns so easily these days.
Macquarie is both target and role model on pay 24 Jul 2019 Aussie watchdogs are cracking down on bank remuneration, and a group of shareholders plans to contest Macquarie’s pay at this year’s shareholder meeting. That’s odd, because Macquarie’s practices are pretty sensible – and its rewards pale versus poorer performers on Wall Street.
CLSA exodus leaves owner Citic with an empty shell 20 Jun 2019 The brokerage's star analysts are being poached by rivals like Credit Suisse and Jefferies. They take with them much of the brand value China's Citic Securities paid $1.3 bln for in 2013. Such mergers are always tough. But the state-owned group missed opportunities to do better.
Popular Modi puts Indian resistance to the test 24 May 2019 Prime Minister Narendra Modi has been re-elected despite concerns he strong-arms the central bank, judiciary, and media. Voters seem unfussed about checks and balances - a global trend. But if he pushes them too hard, India’s democratic institutions will struggle to hold up.
Indian investors missed memo on crony capitalism 20 May 2019 Companies linked to Anil Ambani and Gautam Adani jumped in value after exit polls tipped Narendra Modi to win easily. Both tycoons are deemed close to the prime minister who has, in fact, made strides tackling corruption. The market moves imply perceptions will be hard to change.
Nissan chief makes useful scapegoat for everyone 17 May 2019 Hiroto Saikawa may stay longer than expected at the $30 bln Japanese carmaker. Nissan is in shambles, but there's a case for letting him clean up the worst of it, then hiring a more charismatic successor. If he makes things worse, Renault has a stronger argument for merging.
Mourned Aussie prime minister raises ballot bar 17 May 2019 Bob Hawke, dead at 89, floated the currency, boosted trade and broadly opened the country. Though his eight-year tenure ended in 1991 as Australia slid into recession, there hasn’t been one since. His legacy looms large as voters go to polls this weekend, amid a cooling economy.
Qantas captain flies into risky tenure territory 8 May 2019 Alan Joyce agreed to serve as CEO of the $6 bln Aussie airline for another three years. He’s young and has led an impressive turnaround over the past decade, but problems often pile up for bosses who stick around too long. Succession should be atop the Qantas board’s to-do list.
New winds may blow Korean Air successor off-course 8 May 2019 The sudden death of the carrier's patriarch has elevated scion Cho Won-tae to run the parent Hanjin conglomerate. A huge inheritance tax and restive shareholders, including the country's pension giant, threaten his grip, though. Heirs at Samsung and Hyundai face the same forces, too.
Emperor’s new holiday tests wary Japanese shoppers 26 Apr 2019 The world's third-largest economy will take a 10-day break as the crown prince ascends to the Chrysanthemum Throne. Travel agents and malls hope for a spending spike, but this nation of workaholics may disappoint. If they do, that may delay a much-needed consumption tax hike.
Terry Gou’s presidential hopes will rock Taiwan 18 Apr 2019 Citing support from a sea goddess, the Foxconn founder is running for the top job. Beijing links and a history of outsourcing to cheap mainland factories will be at issue, when the economy is weak. The campaign will also unsettle relations between Taipei, Washington and Beijing.
JPMorgan’s CEO parlour game is far from over 18 Apr 2019 Putting finance director Marianne Lake in charge of consumer lending is an unsubtle hint about who might one day replace Jamie Dimon. She makes for a solid succession candidate. A lot can happen at a mega-bank in four years, though. Hot-seats have a way of becoming jump-seats.
India Insight: The new rich face a wealth trap 1 Apr 2019 Mumbaikars are hitting the tippy end of the income stratosphere, investing in fine wine and foreign residency visas. Trophy assets like a top British football club can’t be far off. With this Chinese-style trajectory, Indians will have to avoid becoming the new dumb money.
Insurers’ deathly jackpot may yet backfire 15 Mar 2019 A sixth of 2018 operating profit came from UK insurers tweaking their mortality assumptions. Ghoulishly, that’s because customers are dying sooner, meaning lower required pensions payments. The problem for investors is that this handy boost could easily go into reverse.
Vale can keep pages from departing CEO’s playbook 4 Mar 2019 Fábio Schvartsman has stepped down weeks after a fatal dam collapse. Waiting for prosecutors to push the issue is bad form. Safety and governance will have to become bigger priorities for the $65 bln Brazilian miner, but many strategic and operational ideas are worth preserving.
India Insight: Money power is choking democracy 4 Mar 2019 From free flat-screen TVs to biryani parties and paid news, cash distorts the workings of the world’s largest democracy, otherwise a marvel of staggering complexity. As a home-grown oligarchy takes hold, India needs a leader who can make good politics out of electoral reform.