Asia-Pacific

Japan loses a big title, and perhaps its way

15 Feb 2024

A surprise technical recession means the country is no longer the world’s third-largest economy. Even more unnerving is a slew of weak data that make it harder for the central bank to end an era of ultra-low interest rates. Companies’ wage negotiations will be a deciding factor.

Indonesia votes for status quo, ups the ante

15 Feb 2024

Prabowo Subianto is the next president, polls show. He won after pledging to continue the policies of outgoing Joko Widodo. But the $1.4 trln economy, Southeast Asia's biggest, faces a slowing China and crashing nickel prices. He needs to pick a credible finance minister fast.

Japan’s overseas tech deal crosses financial wires

15 Feb 2024

Electronics design outfit Altium has a smart product and is growing at a decent pace. That doesn't justify Renesas paying $6 bln for the Australian-listed company. Unless the buyer can supercharge revenue, it's another Japanese outbound deal that will generate meagre returns.

Capital Calls: Lyft

14 Feb 2024

Concise views on global finance: The US ride-hailing firm mistakenly forecast 500 basis points of margin improvement for 2024, causing its stock to surge some 60% before it came back to earth.

Adani is a gift that will keep on giving

14 Feb 2024

Its flagship company is a top coal trader and is incubating new businesses from green power to airports. That will soon produce a wave of IPOs. Asia's richest man will keep testing and shaping India's $4 trln stock market for years to come.

Capital Calls: TUI decamps

13 Feb 2024

Concise views on global finance: Europe’s largest travel firm is encouraging investors to vote in favour of cancelling its London listing, but the UK need not mourn the loss.

Gaming suitors have a window in which to pounce

13 Feb 2024

After a ropey 2022, the $180 bln sector grew less than 1% last year. Former stars like Ubisoft have been cutting staff, and their shares now look cheap. That gives perennial suitors who think gaming can recover – like Netflix, Disney and Saudi Arabia – a chance to bulk up.

Capital Calls: Temu’s spending

12 Feb 2024

Concise views on global finance: The Chinese shopping app’s Super Bowl commercial is part of a broader effort to win market share. It’ll help companies like Meta, but Temu now has a chance to muscle in on Amazon’s turf and force the e-commerce giant to compete.

Ignoring migration’s roots will cost the West dear

12 Feb 2024

Politicians in the US and Europe are devoting much energy to stopping illegal migrants. But this will achieve little unless they also tackle the drivers of migration: poverty, conflict, and climate change. Otherwise, politics in the rich world will become increasingly toxic.

Capital Calls: L’Oréal

9 Feb 2024

Concise views on global finance: The French cosmetics giant suffered from the same China pain as Shiseido and Estée Lauder, but it is coping better than its Japanese and US rivals.

Hyundai’s India IPO will crush Korean discount

9 Feb 2024

A Mumbai listing of its local unit at a $30 bln valuation would secure an earnings multiple many times its parent. Proceeds will fuel blistering growth and enable Hyundai to cut more deals. It rarely makes sense to float subsidiaries but this plan looks more than roadworthy.

BHP and Rio take competition out of going green

9 Feb 2024

The giant miners are teaming up to try and decarbonise steel production. Cutting the 8% of global emissions the current process belches out is key to saving the planet. The collaboration can help Australia keep up too. It makes this unusual setting aside of rivalry doubly smart.

Capital Calls: Maersk, SoftBank, Adyen

8 Feb 2024

Concise views on global finance: The Danish shipping giant’s shares fell 14% after it missed expectations and warned of years of earnings pain; the Japanese investment firm posted its first net profit in five quarters; the Dutch payment company is slowly recovering.

Xi can wait out the Anywhere-But-China trade

8 Feb 2024

Removing the chair of the securities regulator offers a scalp for the market crash as domestic and foreign investors dump stocks and claw at other destinations. Confidence is flagging, but the Chinese leader's best option may be to let benchmarks find a bottom first.

Capital Calls: Disney

7 Feb 2024

Concise views on global finance: Boss Bob Iger nabbed Taylor Swift’s movie for his company’s streaming service, took a $1.5 bln stake in Epic Games and shipped more money to shareholders. But traditional TV is declining, and a new sports partnership makes for an awkward fit.

Toyota hitches a ride with the zeitgeist

7 Feb 2024

The car company’s bet on a slower transition is playing well. Shares hit a record high as third-quarter earnings grew 86% and sales of hybrids rose nearly 50%. Even a slowdown in China didn’t dampen the mood as expectations for the world’s largest auto market are fast fading.

Woodside torches Santos’ quick activist fix

7 Feb 2024

The oil and gas driller ended talks with its smaller rival about a $52 bln merger Down Under. A deal always looked hard. But it could have got investors off Santos CEO Kevin Gallagher’s back. Now he’ll have to try the slower route of capital returns, cost cuts and asset sales.

Japan is the new Disneyland of global activism

7 Feb 2024

Elliott wants $24 bln property giant Mitsui Fudosan to offload its stake in the Tokyo theme park operator and buy back shares. Like many of his peers, Mitsui's CEO is a convert to shareholder religion. The new challenge for activists is getting company bosses to be more devout.

A pinch of salt could unsettle electric-car order

7 Feb 2024

Carmakers Stellantis and BYD are betting on sodium-based batteries. The cells’ bulk and need for more frequent charging mean they may struggle to drive lithium tech off the road. But affordability and the prospect of loosening China’s grip on the industry will spur adoption.

China’s bad banks rejig can serve a bigger purpose

6 Feb 2024

Sovereign fund CIC may subsume three of the country’s big four bad-debt managers, per a now-deleted state news agency report. It may seem like more piecemeal policy. But similar moves between 1998 and 2003 to clean up toxic loans helped beat deflation and invigorate the economy.