HONG KONG (Reuters Breakingviews) - It’s out with the old and in with Nio. The Chinese electric-car maker unveiled a new model and plans for a more powerful battery pack at its annual “Nio Day” extravaganza over the weekend. Those extras should smooth the way for its latest capital hike, but so much needs to go right to justify a $100 billion valuation that exceeds those of Ford, General Motors and Daimler.
HONG KONG (Reuters Breakingviews) - There’s a new gamble worth taking for MGM Resorts International. One of its Asian investors, Snow Lake, wants the U.S. casino operator to sell a fifth of its $6 billion Macau business to a Chinese partner. Although it would complicate deals at home and elsewhere, the idea has plenty of merit.
HONG KONG (Reuters Breakingviews) - As the world faced up to its annus horribilis, Breakingviews’ readers showed a voracious and varied appetite for agenda-setting financial insight. Sure, the Covid-19 virus was on everyone’s mind, but an analysis of the most-read stories of the year proved our readers are rarely myopic.
HONG KONG (Reuters Breakingviews) - U.S. online gambling is one of 2021's better bets. After a painful pandemic, wagers will become a welcome source of tax dollars across America. The potential market for internet sports betting could be worth up to $23 billion, twice the annual gaming revenue of Nevada casinos, according to company estimates compiled by Bernstein. Websites and old-school casino companies are set to pocket winnings.
HONG KONG (Reuters Breakingviews) - China’s WM Motor will start pulling ahead of Tesla wannabes. The Shanghai-based upstart chose a different path to Elon Musk and compatriots such as Nio and Xpeng, opting to list at home instead of New York, and choosing the mass market over luxury. As a result, WM Motor will be close to gross profitability by the time it lists early in 2021.
HONG KONG (Reuters Breakingviews) - Hyundai Motor Group has gained a new high-tech best friend. The South Korean conglomerate and its chairman will take control of Boston Dynamics, the venture famed for Spot the robotic dog and other eerily lifelike designs. The technology complements Hyundai’s diversification drive, and seller SoftBank will keep a stake. That endorses Chairman Euisun Chung’s ambitious vision to transform his staid autos-to-steel conglomerate.
HONG KONG (Reuters Breakingviews) - It always pays to be cautious when it comes to used-car dealers. Kaixin Auto, which sells second-hand vehicles online in China, is no exception. The company, whose name translates as “happy”, has experienced a 2,300% surge in its stock price over the last two months. The rally warrants a closer inspection.
HONG KONG (Reuters Breakingviews) - Australian cheese-maker Bega could buy Lion Dairy for $402 million after the government blocked a Chinese buyer. A local champion might consolidate the domestic market, but there are few substitutes for demand from the People’s Republic.
HONG KONG (Reuters Breakingviews) - The Crown Resorts saga could end with a deal after all. Regulators have suspended the Australian casino operator’s gaming licence for its new luxury Sydney complex. As the company and billionaire James Packer consider their options, private equity firm Blackstone looks well-suited to be a buyer.
HONG KONG (Reuters Breakingviews) - Panasonic’s complicated corporate circuitry cries out for simplification. The Japanese conglomerate is yet again reorganising a $26 billion electronics empire that spans fax machines to electric-vehicle batteries. It should streamline operations and improve profitability. With luck, it will also make it easier for new boss Yuki Kusumi to lead a broader breakup.