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Robyn Mak

Breakingviews - SK Hynix’s $9 bln deal is chip sector’s quick fix

Oct 19 2020

HONG KONG (Reuters Breakingviews) - SK Hynix's chip deal is just what the sector needs right now. South Korea's semiconductor giant will buy Intel's NAND memory business for $9 billion - its largest acquisition ever. Less competition might prop up prices, which have plunged on uncertain demand. In the long term, stronger chipmakers may stand a better chance against Chinese entrants.

Breakingviews - Ant’s IPO delay flags a recurring headache

Oct 14 2020

HONG KONG (Reuters Breakingviews) - Technology firms, particularly finance-focused ones in China, are used to operating at the cutting edge of regulation. But overconfidence is always a risk, as Chinese fintech champion Ant has discovered after watchdogs started probing its initial public offering process.

Breakingviews - Samsung enjoys Washington gift that keeps giving

Oct 07 2020

HONG KONG(Reuters Breakingviews) - Samsung Electronics can have Huawei's cake and eat it too. The South Korean conglomerate expects to deliver a robust third-quarter performance, as U.S. sanctions forced its Chinese customer to stockpile chips. Taking some of its telecommunications equipment and smartphone business will be the real prize.

Breakingviews - JD's hyped-up spinoffs leave its basket light

Sep 29 2020

HONG KONG (Reuters Breakingviews) - JD.com might look slightly unloved after completing its hyped-up spinoffs. The Chinese web retailer's market cap has more than doubled to $117 billion this year. That has been helped by expectations for listings of its health, financial technology and logistics units which might account for almost half of JD’s equity value. The downside is it prices up a so-so worth for its outperforming e-commerce business.

Breakingviews - Toshiba’s chip IPO could short-circuit

Sep 17 2020

HONG KONG (Reuters Breakingviews) - The debut of Toshiba’s chip unit may short-circuit in volatile markets. Two years after the Japanese conglomerate's crown jewel was sold to a group led by U.S. buyout firm Bain Capital, the rebranded Kioxia will go public in Tokyo at a valuation of $20 billion.

Breakingviews - Nvidia's $40 bln Arm deal is risky chess move

Sep 14 2020

HONG KONG (Reuters Breakingviews) - Nvidia has played a risky opening chess move. The U.S. listed graphics-chip specialist led by Jensen Huang will buy UK chip designer Arm from SoftBank and its Vision Fund in a deal worth up to $40 billion. But Arm's customers and regulators may baulk, and the chunky price tag presupposes huge growth and market share gains.

Breakingviews - Rio Tinto rebellion sets new ESG bar

Sep 11 2020

HONG KONG (Reuters Breakingviews) - Rio Tinto’s recklessness has set a welcome new bar for environmental, social and corporate governance. Boss Jean-Sebastien Jacques and two deputies, including the head of its iron ore unit which accounted for 96% of half-year earnings, will step down after outcry over the $105 billion miner's destruction of a 46,000-year-old Aboriginal heritage site in Western Australia. Local activists and shareholders, including the country’s powerful superannuation funds, have led a charge that will inspire other socially-conscious investors.

Breakingviews - What is Ant really worth?

Sep 09 2020

HONG KONG (Reuters Breakingviews) - Valuing Ant is no easy thing. The hype around its initial public offering, combined with a recently restructured business model and unpredictable regulatory environment, make the Chinese financial technology behemoth’s prospects especially difficult to forecast. It also has no obvious peers. Given the available information, though, a Breakingviews calculator suggests a reasonable place to start is about $275 billion.

Breakingviews - SMIC selloff downplays U.S.-China trade friction

Sep 08 2020

HONG KONG (Reuters Breakingviews) - Chinese investors may be downplaying U.S.-China trade tensions. The Hong Kong shares of chipmaking champion Semiconductor Manufacturing International (SMIC) plunged some 23% on Monday on news that the White House might blacklist it. The immediate financial hit looks manageable, but long-term prospects are darkening.

Breakingviews - Abenomics will live on in a post-Abe Japan

Aug 28 2020

HONG KONG (Reuters Breakingviews) - Shinzo Abe may be gone, but Abenomics will stay on. The long-serving prime minister of Japan resigned on Friday. Two of the three arrows of his eponymous reforms are well established. The third, the growth arrow, has flown less high. The next prime minister will find it hard to get over the challenges of the current pandemic and long-term demographic trends.  

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