Asia-Pacific

Asia’s tech giants lean toward desperate deals

30 Nov 2023

TikTok is in talks to tie up with Indonesia’s GoTo to avoid a ban on social media entities in e-commerce, per Bloomberg. China’s growth woes incentivises its companies to compromise as they push overseas. A share price rout means Southeast Asian foes could soon become friends.

Saudi’s Indian cricket play works for both sides

30 Nov 2023

The kingdom is looking to invest as much as $5 bln in the Indian Premier League. In this Viewsroom podcast, Breakingviews columnists discuss what it means for the sport and how it sizes up against Riyadh’s growing global sporting ambitions.

 

Capital Calls: Ferrovial/Heathrow

29 Nov 2023

Concise views on global finance: The Spanish infrastructure giant has offloaded its final 25% stake to Saudi Arabia’s sovereign wealth fund and private equity group Ardian for 2.4 bln pounds, but a chunky premium means the new owners should hope for a smoother ride.

Temu takes edge, and shine, off Shein

29 Nov 2023

The shopping app’s huge success helped parent PDD double quarterly revenue, sending its New York stock up 18%. It puts the planned US debut of its rival, valued at $60 bln, in perspective. Shein will test appetite for hot China-linked deals but it’s not a singular phenomenon.

Capital Calls: Barclays, Rolls-Royce

28 Nov 2023

Concise views on global finance: Initial glimpses of the $27 bln UK bank’s new plan suggest it won’t gee shares that trade at 0.4 times tangible book value; the engine-maker’s CEO has set out bold profit targets as part of its strategy overhaul.

COP28’s big dilemma: fossil fuel cuts, or fudges

28 Nov 2023

The success of the Dubai climate shindig rests on how much it slashes emissions via cuts to oil production, and how much it relies on carbon storage or removal. In this Exchange podcast, Energy Transitions Commission chair Adair Turner warns against relying on the latter.

Slowing China still leads the race for commodities

28 Nov 2023

The world’s second-largest economy may expand by a sub-par 4% next year. But that would be 27% of global growth. And Beijing’s shift from property to greener sectors will support its appetite for copper, steel and such. Investors looking just at the big picture risk missing out.

EU is ill-equipped to meet growing global threats

27 Nov 2023

The bloc would be more effective in a dangerous world if its 27 members could make decisions more quickly. The snag is that nationalistic currents make countries even more reluctant to give up their vetoes. It is not clear if the European Union can find a way to square the circle.

Capital Calls: Amazon shipping

27 Nov 2023

Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.

Foxconn is still running with difficult status quo

27 Nov 2023

Terry Gou’s exit from Taiwan’s presidential election race may shield the $45 bln firm he founded from immediate political crossfire from Beijing. However, the Apple supplier’s push to move production outside of China leaves it firmly on frontlines of rising cross-strait tensions.

Capital Calls: China and iron ore

24 Nov 2023

Concise views on global finance: A warning from Chinese regulators for traders not to hype up prices has done little to dampen the bullish mood. The rally could extend if Beijing unleashes property market reforms.  

The future of interest rates is more surprises

24 Nov 2023

The return of inflation surprised central banks which until recently predicted rates would remain “lower for longer.” Economists and investors struggle to agree on what has changed or what will happen next. Those who assume current interest rates are normal may be in for a shock.

Every country needs an Inflation Reduction Act

23 Nov 2023

The US's $370 bln in green subsidies left allies fearing they’d be at a disadvantage. Now they’re realising that adapting the blueprint can unlock private capital, boost economies and speed up the energy transition. Funding remains a challenge, but not an insurmountable one.

Branding’s corporate titans face moment of truth

22 Nov 2023

Sales volumes at consumer goods giants are falling for the first time this century. Branded goods sell well when quality is tangibly higher and price premiums slim. With neither now the case, the valuation of $296 bln Nestlé, and rivals, may shrink in line with its KitKats.

Capital Calls: Carlyle, Panasonic

22 Nov 2023

Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.

Moutai price hike comes with bigger responsibility

22 Nov 2023

The Chinese booze giant has raised the wholesale price of its fiery liquor for the first time since 2018, lifting the spirits of investors in the $310 bln group. But it may have to share the windfall with its home province, which is grappling with a $380 bln debt hangover.

Capital Calls: Monte dei Paschi

21 Nov 2023

Concise views on global finance: The Italian Treasury raised 920 mln euros by selling a 25% stake in the bank on the open market. So far, it looks like a better outcome for taxpayers than submitting to the onerous sale conditions offered by UniCredit in 2021.

Geely unit IPO will test geopolitical speed limit

21 Nov 2023

EV maker Zeekr, owned by China’s largest auto group, may raise almost $500 mln by going public in New York. Sales of cars, batteries and research are zooming at home, but plans to list and expand abroad look ambitious unless Beijing’s tensions with Washington and Brussels abate.

“Ex-Japan” title may take a final bow with Goldman

21 Nov 2023

The retirement of Japan President Masanori Mochida gives the US firm the option to follow its rivals and have his successor report into the Asia CEO. After a long lull, Japan’s markets are hot. But shape-shifting foreign banks may opt to bring the country into the regional fold.

World Bank and kin head for a $100 bln cash call

20 Nov 2023

Scaling up the Washington-based lender and other multilateral banks makes geopolitical sense and helps fight climate change. Sweating their balance sheets is a start. But eventually shareholders including the US will have to overcome domestic hurdles and put up more capital.