Luxury firms will warily cut prices to boost sales 19 Dec 2024 High-end goods cost 54% more than before Covid. Yet the likes of LVMH refuse to blame lower volumes on more expensive wares. The fact is that rich Chinese consumers care more about savings than status symbols. Sacrificing margins will be an uncomfortable but inevitable strategy.
India starts resembling China in unflattering ways 19 Dec 2024 Growth is slowing and allegations of interference in the West’s affairs are rising. Part of the narrative weighing on the world’s second-largest economy is applicable to its fifth largest. Even if similarities are exaggerated, the connection poses a threat to India’s moment.
Hot topics of 2024 will smoulder into new year 19 Dec 2024 Inflation in the United States, a struggling Chinese economy and Boeing’s existential challenges were among the stories that dominated this year. In this Viewsroom podcast, Breakingviews columnists explain why these issues – among others – will keep cropping up in 2025.
Nissan-Honda merger would be far from cure-all 18 Dec 2024 Japan’s second- and third-largest carmakers may be mulling a tie-up which might also include Mitsubishi. Cost cuts could bolster dismal margins for the $50 bln trio ahead of US tariffs. But as rival Stellantis's woes show, M&A cannot produce vehicles customers want to buy.
BHP will try a club deal for Anglo American 17 Dec 2024 The Aussie miner is now free to make another takeover proposal for its smaller rival, whose copper assets still appeal to CEO Mike Henry. But paying a big premium looks harder to justify second time round. Partnering with a rival like Glencore or Vale may smooth the way.
US-China tech war will hold Asian allies hostage 16 Dec 2024 Washington’s curbs on semiconductors and other goods are starting to elicit a response from the People’s Republic. New export control rules offer a way for Beijing to retaliate. Its leverage over giants like Japan’s Toyota or South Korea’s SK Hynix make them prime targets.
Yuan’s fall would be a gift to Bank of Japan 16 Dec 2024 Talk of devaluation by Beijing to blunt any impact of an aggressive ratcheting up of US tariffs is jolting currency markets primed for a trade war. A drop in the renminbi would weigh on Japan's yen especially. That's not necessarily bad news for Governor Kazuo Ueda.
AstraZeneca lacks good medicine for Chinese limbo 13 Dec 2024 Executives at the $205 bln drugmaker have been detained by Beijing, hitting its shares. One way for CEO Pascal Soriot to ringfence China risk from the rest of AstraZeneca might be to list or spin off the unit. Yet that might just highlight fresh reasons to mark down the stock.
ESR take-private throws up Asia exit quandary 13 Dec 2024 A group led by US investors offered to privatise the Asian real estate fund manager for $7 bln. Hong Kong's dismal market and ESR's complex business merits the move, yet backers will find it hard to re-list. Asia offers slim pickings for regional groups with IPO dreams.
India tightens its crude bear hug of Russia 12 Dec 2024 Reliance is set to buy Rosneft oil worth $13 bln a year for a decade in the biggest energy deal between the countries. It helps New Delhi cut its current account gap and buy goodwill ahead of Vladimir Putin’s visit. But Moscow’s struggle to manage a flood of rupees may intensify.
New Macau leader deals casino hub a promising hand 12 Dec 2024 Sam Hou Fai takes charge as the gambling enclave struggles to regain its pre-pandemic lustre. He is the first to hail from mainland China and can try to deepen Macau's ties to neighboring Guangdong, including more transport links. Business at Galaxy, SJM and peers could benefit.
India needs more, not fewer, powerful tycoons 12 Dec 2024 US charges against Gautam Adani expose the country’s reliance on too few industrialists to meet its strategic goals. Rather than prompting a breakup of conglomerates, the saga may nudge the government to share the spoils of the $4 trln economy with a bigger group of chosen ones.
Nippon Life plays up Japan Inc’s existential angst 11 Dec 2024 The insurer is buying smaller US rival Resolution for $8.2 bln. Returns look low, and the weak yen makes overseas purchases more expensive. But the deal diversifies earnings too reliant on a shrinking home market. Assuming Washington allows, such transactions will keep flowing.
Korea’s value push is getting a much-needed spark 11 Dec 2024 President Yoon Suk Yeol's botched coup adds urgency for Seoul to curb the power of family businesses. Even before the political crisis, the KOSPI was one of the world's worst performing major stock indices. That makes $22 bln Korea Zinc's upcoming shareholding meeting a key test.
How the world could unplug from China’s batteries 10 Dec 2024 International cell makers are struggling to compete with Chinese giants like CATL. But innovations like solid-state batteries could upend the industry in the not-too-distant future. In this week’s episode of The Big View podcast, QuantumScape CEO Siva Sivaram explains how.
India compounds new central bank boss’s challenges 10 Dec 2024 Sanjay Malhotra will have enough on his plate as RBI governor dealing with a slowing domestic economy amid rising global tensions. But the messy way in which New Delhi handled the transition from six-year incumbent Shaktikanta Das means Malhotra starts on the back foot.
Nvidia probe lets China have cake and eat it 10 Dec 2024 Beijing has started an antitrust investigation into the $3.4 trln firm. Coming after more US tech curbs on the country, the motive seems political. But Nvidia's AI chip dominance means monopoly concerns can't be dismissed. And the decision may resonate with regulators elsewhere.
China’s wealth pledge will face tough sceptics 10 Dec 2024 In a key meeting, Beijing identified stabilising stock and property prices as a top task in 2025. It recognises that people will spend more if they feel rich. This implies a policy bottom for both markets. Yet observers are forecasting a huge range of outcomes in the coming year.
China cuts its private sector much-needed slack 9 Dec 2024 Crackdowns on education and other industries crushed businesses like tutoring firm New Oriental. But the $10 bln firm's recent revival shows Beijing is loosening its grip to boost consumption and create jobs. The shift will hand private giants a bigger role to reboot growth.
ANZ’s new CEO has his hands partly tied 9 Dec 2024 HSBC's ex-retail boss Nuno Matos will take charge of Australia's second-largest lender. Its subpar performance merits the outside hire. But key projects, like integrating Suncorp's bank, are far from complete. That will limit his ability to shake things up at the $60 bln group.