South Korea’s bitcoin-trading tweak is encouraging 23 Jan 2018 A sensible curb on anonymous accounts will limit criminal activity, but hardliners are still calling for a full ban on exchanges. That could backfire by pushing traders to use riskier venues instead. Japanese-style market regulation would be a better way to protect investors.
Ping An’s Big Health plan risks excess success 23 Jan 2018 A $9 bln unit of the Chinese insurer that analyses patient data has lured backers like SoftBank, Reuters reports. The digital upgrade of China’s clunky medical system is a lucrative opportunity for private firms. Data security is a risk; getting too big, too quickly may be worse.
Trump’s solar tariffs add new wrong to old 22 Jan 2018 The levies should ease pressure on surviving panel makers, who account for about 15 pct of the U.S. solar industry’s 260,000 jobs. But pricier imports will set back installers that dominate the sector. It’s an illustration of how difficult righting past trade unfairness can be.
Crypto-FOMO is a shaky market foundation 22 Jan 2018 Hackers have purloined a tenth of the $4 bln raised through initial coin offerings, according to EY. The consultancy says fear of missing out makes investors overlook projects’ flimsy underpinnings. The same could be said of the hype surrounding digital currencies and blockchain.
Netflix cash-flow hole is becoming a moat 22 Jan 2018 Reed Hastings’ video-streaming service is losing cash, but piling on viewers. The $95 bln firm has more subscribers than established rivals like Hulu and Amazon. A hefty content budget is a risk for Netflix, but ensures only the most deep-pocketed media firms can challenge it.
Icahn risks printer error on Xerox fight 22 Jan 2018 The activist wants to put the $8 bln copier company on the block. That makes sense, but torpedoing the CEO and directors during a sale does not. Icahn is also teaming up with pseudo-insider and fellow disgruntled shareholder Darwin Deason. That adds heft, but also controversy.
Qualcomm slipping away from Broadcom’s grasp 19 Jan 2018 The odds were always long on the chipmaker’s $105 bln unsolicited bid. A new federal probe into Broadcom, Qualcomm’s progress with approvals to buy NXP and souring U.S.-China relations raise them further. Broadcom holds a few cards but its hand would be stronger played elsewhere.
China’s battery champion will charge overseas 19 Jan 2018 A $2 billion IPO would give CATL a richer valuation than rivals such as Samsung SDI. To justify that price, the battery maker must thrive at home and abroad. Cracking global supply chains is hard. But where other Chinese giants have stumbled overseas, CATL might just succeed.
Amazon HQ2 choices disappointingly undisruptive 18 Jan 2018 The e-commerce giant has cut the field for its second headquarters to 20 prime locations including Dallas, Atlanta and New York. Hundreds of cities hoped Amazon would think outside the box, but a desire for talent and a welcoming environment led it to the usual hot spots.
Bitcoin’s siren song could send TSMC off course 18 Jan 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.
Indonesian ride-hailing unicorn races to relevance 18 Jan 2018 Go-Jek is bringing in new backers including Alphabet and Temasek, sources say, as it expands its platform model across Southeast Asia. To ward off local rivals and be a serious contender in a cutthroat business, the now $4 bln startup has to grow quickly. Deep pockets help.
Tim Cook goes as American as Apple’s pie 17 Jan 2018 The iPhone maker will pay $38 bln in tax on its huge pile of overseas cash. It’s also pulling an Amazon with plans to open a new U.S. campus, invest $30 bln and create 20,000 jobs. The Apple boss has cleverly engineered some common ground with Donald Trump.
Ford stock’s staying power makes no sense 17 Jan 2018 The Motown automaker expects costs and currencies to impede its earnings recovery. It also trails GM on autonomous cars and is having to double its electric-vehicle investments. Yet Ford trades at a higher multiple than its Michigan rival. GM's prospects look brighter.
Uber’s next ride-share could be in Southeast Asia 17 Jan 2018 After struggling in China and Russia, the app operator swapped its businesses there for stakes in Didi and Yandex. Another sensible partner would be $6 bln-plus Grab, which shares a backer in SoftBank. As Uber aims for an IPO, it's a good region in which to cut further losses.
Tricky startup key may unlock empty Chinese rooms 17 Jan 2018 Warburg Pincus expanded its shared-economy suite by leading a fresh $620 mln investment into Ziroom. The unicorn capitalizes on China's housing-boom crackdown by flipping fallow flats into rentals. It's a clever strategy, but one that will depend on lifting dismal profit margins.
Siemens’ $48 bln health IPO has recovery potential 16 Jan 2018 The German industrial group is floating medical-tech unit Healthineers. Ageing rich-world populations should boost demand for scanning equipment and the like. If the group can sort out its sickly diagnostics division, the mooted price tag could even look cheap.
Alibaba rival’s switch in logistics stacks up 16 Jan 2018 Chinese web retailer JD is raising $2 billion from investors to fund its warehousing and delivery unit, Reuters says. This sensible burden-sharing brings JD and Alibaba’s business models closer together. The trade-off is diluting existing shareholders in a promising venture.
Shareholders leave Autos 2.0 on the hard shoulder 15 Jan 2018 Ford is more than doubling its electric-battery investment to $11 bln, and GM is pushing its driverless car. But as industry gathers for its annual Detroit confab, investors still seem to doubt carmakers can turn new technology into dollars. Tesla remains the exception.
Chinese web giant Tencent gets U.S. tax bonus 15 Jan 2018 U.S. investors snapped up more than half of a $5 billion bond sale by Tencent. That's partly thanks to Republican tax cuts, which may result in fewer bonds from American tech stalwarts. That helps the gaming and social media outfit to lock in cheap overseas funding.
Telecoms IPO would be a smart step for SoftBank 15 Jan 2018 Floating a Japanese cash-cow subsidiary could unlock $18 bln, which boss Masayoshi Son could use for yet more bold bets on new technology. The move might help lift the unit’s performance. It could also help address the persistent discount the market applies to SoftBank shares.