DIRS.INFO The most relevant business & tech news

☆ Sea sails past growth vs. profitability debate
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, March 8 (Reuters Breakingviews) - Singapore technology giant Sea (SE.N) on Tuesday reported its first ever quarterly profit, beating regional tech firms like GoTo (GOTO.JK) and Grab (GRAB.O) to the punch. The almost $1 billion swing from a fourth-quarter loss in 2021 to a $423 million profit in the final three months of last year is largely down to cost cuts. The company run by Forrest Li slashed sales and marketing expenses alone by $745 million, a whopping 62% drop. Whether that’s sustainable is unclear, though Li pointed out that the company had sold, closed or downsized a number of non-core operations and investments. It’s a welcome sign that upstart tech companies don’t always have to sacrifice profitability for growth.

☆ TPG starts a dicey dance with death Down Under
▼ + stars: | 2023-03-07 | by ( Antony Currie | ) www.reuters.com time to read: +3 min

Little wonder, then, that TPG is taking advantage of Australia’s InvoCare (IVC.AX) recently losing market share, and earnings, by offering shareholders A$1.8 billion ($1.5 billion) on Tuesday. But the private equity firm run by Jon Winkelried has started a dicey dance with death. At 5%, for example, annual interest payments on the new debt would be almost $50 million – a third of InvoCare’s expected EBITDA next year. Follow @AntonyMCurrie on TwitterCONTEXT NEWSTPG Global, a fund run by U.S. private equity firm TPG, on March 7 made a non-binding, indicative offer for InvoCare which values the Australian funeral-services company’s enterprise at almost A$2.2 billion ($1.5 billion). The private equity firm had the previous day bought an almost 18% stake in the company from a variety of investors at A$12.65 a share.

☆ American labor shortage is a rose with many thorns
▼ + stars: | 2023-03-07 | by ( Ben Winck | ) www.reuters.com time to read: 1 min

WASHINGTON, March 7 (Reuters Breakingviews) - The short supply of US workers is starting to look more permanent than temporary. In this Exchange podcast, former White House economist Jason Furman explains how near-record job openings could lift prices, and why unemployment probably needs to rise for inflation to cool off. /div>Listen to the podcastFollow @BenWinck on TwitterSubscribe to Breakingviews' podcasts, Viewsroom and The Exchange. Editing by Thomas ShumOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Adani contrarian is a win for Hindenburg, too
▼ + stars: | 2023-03-03 | by ( Una Galani | ) www.reuters.com time to read: +6 min

GQG Partners is snapping up shares in four of the Indian tycoon’s nine core companies, including the flagship Adani Enterprises (ADEL.NS), along with Adani Green Energy (ADNA.NS), Adani Ports and Special Economic Zone (APSE.NS) and Adani Transmission (ADAI.NS). The mogul was trying to do just that last month with a $2.5 billion Adani Enterprise share sale before it was scuppered by Hindenburg’s sortie. Barring something truly exceptional, the scars of Hindenburg’s successful attack on Adani will linger for a while. GQG bought shares in Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and Adani Enterprises from entities owned by the Adani family. Adani has dismissed the allegations outlined in U.S. fund Hindenburg Research’s Jan. 24 report.

☆ Tesla prepares for its next production hell
▼ + stars: | 2023-03-02 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

Demand woes are already threatening Tesla’s breakneck growth: cars delivered to customers have run below production of late, spurring the company to cut prices. Most promising was a presentation showing manufacturing and battery improvements reducing the cost of a “next gen vehicle” by 50%. A mere $5,000 in absolute gross profit, though, would leave little room for research and development and other operating expenses, which ran to $4,545 per car delivered last quarter. Still, Musk pulled off the seemingly impossible before when ramping up the Model 3, a messy slog he dubbed “production hell” at the time. After an opening presentation focused on the broad viability of transitioning the world to sustainable energy, Musk and fellow executives outlined goals to streamline production, reduce manufacturing costs by half and scale up energy storage products.

☆ UK’s Brexit fix has perks for all sides: podcast
▼ + stars: | 2023-03-02 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

LONDON, March 2 (Reuters Breakingviews) - Prime Minister Rishi Sunak agreed a trade deal with the European Union this week. In this Viewsroom podcast, Breakingviews columnists explain what the accord will mean for future relations between Britain and the 27-nation bloc and how Northern Ireland may get an economic boost. Listen to the podcastFollow @aimeedonnellan on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Thomas ShumOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Hong Kong’s office landlords face a tough rebound
▼ + stars: | 2023-03-01 | by ( Thomas Shum | ) www.reuters.com time to read: +3 min

HONG KONG, March 1 (Reuters Breakingviews) - Hong Kong offices are emptier than in other Asian financial centres. Singapore and Tokyo boast rates well under half of Hong Kong’s level, and figures there are either improving or roughly unchanged. Last year, mainland-based companies accounted for less than 6% of all leases in Hong Kong’s key Central business district, from nearly 30% in 2019. Hong Kong’s economy shrunk for three of the last four years, and its population is slimming too. However, the plan to reduce its office footprint may not apply to Hong Kong, a person familiar with the situation told Breakingviews.

☆ Airtel would be a complex saviour for Paytm
▼ + stars: | 2023-02-28 | by ( Shritama Bose | ) www.reuters.com time to read: +4 min

An investment from tycoon Sunil Bharti Mittal would deliver a timely vote of confidence in the loss-making Indian financial technology darling whose Chinese investors are exiting. Currently it only has a payments bank licence, so it can accept deposits but not lend. New shareholders might also help ease an ongoing regulatory freeze on Paytm accepting deposits from new customers. He is seeking a stake in Paytm by merging his financial services unit – Airtel Payments Bank – into Paytm’s comparable unit, and wants to buy shares in its parent too from other holders, per Bloomberg. Mittal seeks to fold Airtel Payments Bank into Paytm Payments Bank in a stock deal and is also seeking to buy Paytm shares from other holders, the people said, asking not to be identified discussing private information.

☆ China’s Li Auto drives a fine profit line
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 28 (Reuters Breakingviews) - The $25 billion electric-car maker Li Auto (2015.HK) is in charging mode. On Monday it reported a net profit of 265 million yuan ($38 million) for the quarter ending December as sales of its family-friendly sport-utility vehicles zoomed 66% from a year earlier. What’s more, unlike other battery-powered groups, Li offers “extended range electric cars” that combine a motor with a smaller battery. Li sees the direction of travel and will soon launch 100% battery-powered products. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Navigating the bumps in the energy transition road: podcast
▼ + stars: | 2023-02-28 | by ( George Hay | ) www.reuters.com time to read: 1 min

LONDON, Feb 28 (Reuters Breakingviews) - War and power crises raise questions about the smoothness of global decarbonisation. In this episode of the Exchange podcast, former Shell Chief Executive and current ABB Chair Peter Voser explains how global companies are adapting, and why European oil majors can still go green. Follow @gfhay on TwitterEditing by Thomas ShumOur Standards: The Thomson Reuters Trust Principles. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Japan Post’s deal will test interest rate optimism
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 28 (Reuters Breakingviews) - The $12 billion triple initial public offering of the Japan Post Group by the government in 2015 was done in the name of economic efficiency. After a brief rally, the collective market value of the three companies it comprises has declined from a peak of 18 trillion yen to below 10 trillion yen, per Datastream. The Ministry of Finance holds over a third of Japan Post Holdings (6178.T), which in turn retains big stakes in the banking and insurance units – although it has trimmed the latter to below 50%. Japan Post Holdings plans to unload shares worth up to $9.3 billion, Reuters reported, reducing its stake to below 65%. It’s a huge deal in a rickety market but the prospect of interest rate normalisation could see more investment into domestic banks – Japan Post Bank shares have rallied this year alongside local peers.

☆ Open-source software braces for trade war
▼ + stars: | 2023-02-27 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +6 min

HONG KONG, Feb 27 (Reuters Breakingviews) - The open-source software movement has been an unprecedented driver of global innovation and productivity growth. As with most Chinese handset makers, founder Ren Zhengfei relied on Android’s open-source code to run his company’s smartphones. Beijing has reciprocated, per a Nikkei report, by instructing its own tech companies not to incorporate ChatGPT into their platforms - a rare example of a mutual firewall. Dividing the world into competing open-source camps would mark another reverse for free trade. Follow @petesweeneypro on TwitterCONTEXT NEWSRegulators have told major Chinese tech companies not to offer ChatGPT services, the Nikkei news service reported on Feb. 22 citing sources with direct knowledge, causing shares in Chinese companies building chatbots to fall.

With Alibaba shares down 30% in one month, enthusiasm for China's return to normalcy is peaking early. The Alibaba chief executive also cautioned that January was a "challenging time" and that the company is keeping an eye on how the reopening develops. Alibaba has hit the limits of the reopening boon. Reuters GraphicsFollow @mak_robyn on TwitterCONTEXT NEWSAlibaba on Feb. 23 reported revenue of 248 billion yuan ($35.9 billion) in the three months to December, an increase of 2% year-on-year. Adjusted earnings rose 12% to 40 billion yuan.

☆ Hong Kong spreads its wings, and its bets
▼ + stars: | 2023-02-23 | by ( Una Galani | ) www.reuters.com time to read: +7 min

HONG KONG, Feb 23 (Reuters Breakingviews) - For a sign that Hong Kong’s recovery is more than wishful thinking, look no further than the city’s Disneyland. The house of Mickey Mouse is implicitly betting Hong Kong will soon be back, and bigger than before. At its core, Hong Kong’s unique selling point is that it’s China-by-proxy for investors; enterprises in the People’s Republic account for 78% of the market capitalisation of Hong Kong’s main boards. Against such a backdrop, it’s logical that Hong Kong is trying to spread its bets. Hong Kong exchange boss Nicolas Aguzin’s pitch is strengthened by a Chinese plan to let overseas companies listed in Hong Kong be included in the Connect programme.

☆ Beijing mutes ChatGPT meme rally
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 23 (Reuters Breakingviews) - The rally in Chinese stocks associated with conversational bots, a side-effect of the popularity of OpenAI’s ChatGPT, has been knocked sideways. Beijing has ordered big Chinese technology companies including Tencent (0700.HK) and Ant not to offer ChatGPT services on their platforms, the Nikkei reported citing people with direct knowledge. The latter’s Hong Kong shares surged 45% between the start of the year and early February, before falling by a fifth since. OpenAI, which is backed by Microsoft (MSFT.O), won’t let Chinese residents create ChatGPT accounts. Still, despite warm noises from Beijing about supporting technology companies, its politics still stifles innovation.

☆ BHP investors aren’t seeing the wood for the trees
▼ + stars: | 2023-02-21 | by ( Antony Currie | ) www.reuters.com time to read: +4 min

Granted, BHP’s earnings of $6.5 billion for the six months to the end of December missed estimates by some 7%. BHP’s investors are missing a bit of the wood for the trees. Iron age: Miners are rallying as iron ore prices riseFollow @AntonyMCurrie on Twitter(The author is a Reuters Breakingviews columnist. The company attributed the drop to lower prices for iron ore and copper. BHP is paying a dividend of 90 cents a share for the period, down from $1.50 a share a year earlier.

☆ War puts defence firms on investors’ radar: podcast
▼ + stars: | 2023-02-21 | by ( Lisa Jucca | ) www.reuters.com time to read: 1 min

MUNICH, Feb 21 (Reuters Breakingviews) - The Ukraine conflict is prompting once-wary capital to engage with defence and aerospace companies. In this Exchange podcast Lorenz Meier, CEO of drone software firm Auterion, accepts ethical issues remain. But defence tech startups should brace for new venture capital cash. Listen to the podcastFollow @LJucca on TwitterloadingSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Even a weak Russia is a problem for Europe
▼ + stars: | 2023-02-20 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

TINOS, Greece, Feb 20 (Reuters Breakingviews) - Almost a year after Russia invaded Ukraine it is hard to see Vladimir Putin winning his war. After all, that would involve either Ukraine surrendering land, which it cannot accept, or Russia giving up all the territory it has occupied including Crimea, which Putin won’t do. Radoslaw Sikorski, a former Polish foreign minister who is now a member of the European Parliament, says Russia only reforms itself after military defeats like the Crimean War, the Russo-Japanese War, World War One and the Cold War. Europe, which was late to appreciate the danger posed by Putin, won’t quickly forget the lesson even if he goes. Yet even a Russia weakened by a year of war and sanctions remains a problem for Europe.

☆ Shein's ambitions are a bit of a stretch
▼ + stars: | 2023-02-20 | by ( ) www.reuters.com time to read: +2 min

Shein’s top-line growth slowed from 57% in 2021 to 45% last year; the company expects that to continue, with its 2025 target implying average annual expansion of 37%. Meanwhile, Shein's projected 13% profit margin dwarfs that of web retailers like China's JD.com (9618.HK). The $118 billion PDD (PDD.O) recently rolled out its Temu shopping service; it is now the most downloaded app in the United States. Using the same 2.4 times forecast 2025 sales multiple the Inditex enterprise trades on, Shein's valuation could top $140 billion. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

HONG KONG, Feb 17 (Reuters Breakingviews) - The disappearance of Bao Fan is a chilling dampener on the reopening of the world's second largest economy. China Renaissance was valued at $2.3 billion in its own IPO in 2018 when it was ranked second on China tech deals per Dealogic. Entities including China International Capital Corp (3908.HK) and Citic Securities (600030.SS), also have to grapple with President Xi Jinping’s common-prosperity campaign, making it unclear whether these firms’ erstwhile generosity will resume when advisory activity picks up. It also noted that in September Chinese authorities took Cong Lin, the bank’s president and chairman of its Hong Kong securities unit, into custody. Column by Yawen Chen in Hong Kong and Una Galani in Mumbai.

☆ Central banks' inflation fall-guy lives Down Under
▼ + stars: | 2023-02-16 | by ( Antony Currie | ) www.reuters.com time to read: +4 min

MELBOURNE, Feb 16 (Reuters Breakingviews) - If any central bank governor was to feel the heat from the past year’s multiple interest-rate increases, the smart money might have been on the U.S. Federal Reserve’s Jerome Powell. Fast forward and Philip Lowe, governor at the Reserve Bank of Australia, looks most exposed. It would be unfair for Lowe to be the fall guy for central banks’ general inflation failure. The head of the central bank made his comments in front of the Senate Economics Legislation Committee. When questioned about his future at the bank, Lowe said he intended to serve out his seven-year term as governor, which ends in September.

The $108 billion group’s sheer size means it benefits from exceptional economies of scale in an immature industry. Last year, it tripled both production and sales of pure electric and hybrid cars to nearly 2 million vehicles. That is equivalent to roughly a quarter of EVs purchased in China in 2022. The group makes batteries too, accounting for almost a quarter of China’s total sales last year, Jefferies estimates. Overall passenger car sales, including electric vehicles and fossil-fueled models, slumped 38% in January, reversing a 2.4% gain in the previous month.

☆ Ford deal shows U.S. EVs can’t unplug from China
▼ + stars: | 2023-02-15 | by ( ) www.reuters.com time to read: +2 min

It’s evident that President Joe Biden’s Inflation Reduction Act “did what it was intended to do”, according to one executive. Ford Motor (F.N) is licensing technology and services from China’s Contemporary Amperex Technology (300750.SZ), rather than buying batteries directly or forming a joint venture. This unusual setup allows the American auto veteran to use CATL’s lithium ferro-phosphate (LFP) chemistry whilst satisfying the IRA’s demands. As automakers start mass-producing electric vehicles, they will depend on Chinese suppliers, wherever they locate their factories. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Bank of Japan’s new governor starts on back foot
▼ + stars: | 2023-02-14 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +3 min

HONG KONG, Feb 14 (Reuters Breakingviews) - Academic Kazuo Ueda faces a rocky time as the new governor of the Bank of Japan (8301.T). He is stepping down just as his signature yield curve control (YCC) policy is becoming increasingly unsustainable as domestic inflation rises. The Nikkei news service reported that officials had approached Deputy Governor Masayoshi Amamiya and were rebuffed. It seems likely Ueda will have to modify or abandon YCC given how much damage it is doing to the bond market and the BOJ’s balance sheet. Follow @petesweeneypro on TwitterloadingCONTEXT NEWSJapan's government on Feb. 14 named academic Kazuo Ueda as its pick to become the next governor of the country’s central bank.

☆ Japan’s next central bank chief may rue promotion
▼ + stars: | 2023-02-13 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +7 min

In fact, it has spent an average of 1.3 trillion yen per trading day since the band widened: nearly 50 trillion yen in total, per Refinitiv data, and still counting. The central bank already owns over half of Japan’s sovereign bonds and is sure to suffer large losses when their prices fall, which they eventually must. The central bank chief must also work to put the country’s vast stack of inert money back to work. Kuroda effectively put the central bank at the service of former Prime Minister Shinzo Abe’s “Abenomics” stimulus programme. Fumio Kishida, the current leader, is having popularity problems and will want the central bank to support his aggressive agenda, which includes hiking defence spending, promoting innovative startups and redistributing wealth.

Search resuls for: "Thomas Shum"

25 mentions found