Asia-Pacific

Capital Calls: Target’s bullseye

16 Aug 2023

Concise views on global finance: The $60 bln retailer reported better-than-expected second-quarter profit, sending shares up some 8%. The reaction overlooks some big problems and puts faith in factors beyond the company’s control.

Evergrande’s EV deal drives wishful thinking

16 Aug 2023

The embattled property group is giving up control of its stalled electric-car unit to help pay down debt. Its new partner, Dubai-based NWTN, hopes the purchase will charge up its own China strategy. But that seems overly optimistic in an increasingly cutthroat market.

Vietnam’s Tesla charges itself up for a big fall

16 Aug 2023

VinFast shares leapt 270% on their Nasdaq debut following the group’s $27 bln merger. A cosy shareholding structure boosted the valuation to 16 times its US rival but tycoon Pham Nhat Vuong’s EV maker has teething problems. Outsiders will be exacting when he needs to raise money.

Capital Calls: Selling Salesforce

15 Aug 2023

Concise views on global finance: After successfully agitating for change at the $200 bln software developer, Jeff Smith’s Starboard and Dan Loeb’s Third Point are offloading their stakes. It’s probably a good time to pocket gains considering the challenges ahead for Big Tech.

Central bank peanuts highlight China’s policy gaps

15 Aug 2023

A surprise rate cut failed to soothe markets rattled by a weak economy and property defaults. The People’s Bank of China is limited by thin bank margins and the risk of outflows. Loose monetary policy won’t help demand, if President Xi Jinping keeps ducking bolder fiscal action.

A less friendly Hong Kong awaits global investors

15 Aug 2023

The city ditched a requirement for Chinese firms to hold separate votes on certain matters for onshore and offshore shareholders. It hits at the outsize influence BlackRock and others long exercised via Hong Kong and is another reason to buy mainland shares instead.

Capital Calls: Exor/Philips

14 Aug 2023

Concise views on global finance: The Agnelli family is making a well-timed bet on the troubled 18 bln euro conglomerate that makes everything from toothbrushes to defibrillators.

Electric vehicle premiums will ride high in India

14 Aug 2023

Temasek handed a punchy $10 bln valuation to Mahindra’s unit but other shareholders barely endorsed the deal. With fewer opportunities to ride the boom than in China, the Singaporean state investor won’t be the last to turn heads in the world’s third largest car market.

OPEC’s oil sweet spot may not last long

11 Aug 2023

Crude prices have risen some 20% since the cartel and Russia extended supply cuts in June. The spike owes much to falling inflation and hopes of a soft landing. Yet risks around China and US growth persist, and seasonal demand will soon fade. Oil producers may need to do more.

Fairy-tale ending will elude Disney in India

11 Aug 2023

The $168 bln Magic Kingdom is bleeding subscribers in the emerging market. Boss Bob Iger wants to sell or find a partner to salvage the business’ cratering value. Even if he can do a deal with giants like Reliance or the enlarged Sony-Zee, the terms will be less than blockbuster.

Capital Calls: FC Barcelona’s $1 bln SPAC deal

11 Aug 2023

Concise views on global finance: The Spanish soccer club is merging its media arm with a blank-check firm. Pinning its value on the franchise’s social-media followers is worthy of a red card.

Capital Calls: Siemens

10 Aug 2023

Concise views on global finance: The rot at the 110 bln euro German industrial group is spreading from its misfiring energy unit to the core automation business.

L’Occitane buyout is bad look for Hong Kong

10 Aug 2023

Boss Reinold Geiger wants full ownership of his skincare group. At $7 bln, it would be the city’s largest take-private and L’Occitane could relist at a higher valuation at home in Europe. It’s a no-brainer others will want to copy and shows up the Asian hub’s helplessness.

America’s new China curbs eschew scale for smarts

10 Aug 2023

The Biden administration’s plan for screening US investments in the People’s Republic is not the wide-ranging proscription many expected. It targets only a handful of deals, would ban even fewer and isn’t retroactive. That’s a relief for most investors – and for diplomacy, too.

Chinese homebuilders see no light at end of tunnel

9 Aug 2023

The property crisis is claiming one of the few big developers left standing. Country Garden might dodge a default but slowing sales make honouring $200 bln of liabilities and building 1 mln apartments hard. Beijing is pushing firms to the brink, and they have reason to push back.

Capital Calls: Italian bank levy flip-flop

9 Aug 2023

Concise views on global finance: Rome has only partially soothed investors panicking over its windfall tax on lenders.

Uday Kotak is wanting for the market’s support

9 Aug 2023

Asia’s richest banker wants to stay on his $44 bln lender’s board when he steps down as CEO. India’s regulator will weigh that up as it decides if an insider also can be the new boss. A cosy arrangement may be tolerable but Kotak Mahindra’s stock is starting to work against him.

Capital Calls: Dish and EchoStar

8 Aug 2023

Concise views on global finance: Billionaire Charlie Ergen is reuniting the two satellite businesses he controls, beefing up the $4.5 billion Dish Network’s strained balance sheet as it tries to expand its wireless strategy.

Jho Low could create a new world of 1MDB pain

8 Aug 2023

The fugitive at the centre of Malaysia’s sovereign fund scandal, is in China. In this Exchange podcast Billion Dollar Whale co-author Bradley Hope explains why Beijing may soon give him up and how his return could be difficult for all involved, from global banks to celebrities.

Bubble tea will test limits of China’s consumers

8 Aug 2023

Half a dozen boba-drink makers including Mixue Bingcheng are looking to list abroad. Profit margins are low in the $20 bln sector. But as shoppers reduce higher-end spending, the cheap-and-cheerful brews can thrive – even if Beijing holds back on much-needed stimulus.