Honda reveals plan for autonomous ‘robotaxi’ ride service in Tokyo
Honda Motor aims to launch a self-driving robotaxi service in Tokyo within three years, the Japanese automaker said on Thursday.
Honda, General Motors and GM subsidiary Cruise — which currently offers limited autonomous ride services in San Francisco — will create a joint venture next year, the company said, with a view to starting the service with dozens of six-passenger Cruise Origin vehicles in early 2026.
The service’s Tokyo fleet would then grow to 500 vehicles, Honda said, before expanding to other areas in Japan. Customers will use a dedicated smartphone app for hailing a ride and making payment.
Kakao CIO arrested for alleged stock manipulation during K-pop agency takeover
South Korean authorities have arrested the chief investment officer of internet group Kakao for allegedly manipulating stock prices during a heated acquisition battle for K-pop agency SM Entertainment.
The Seoul Southern District Court issued the arrest warrant for Bae Jae-hyun on Thursday.
Financial regulators accused Bae and two other Kakao executives of buying Won240bn ($178mn) of SM shares in an effort to undermine a tender offer from rival bidder Hybe, the label behind K-pop sensation BTS.
Kakao won control of SM in March after an intense bidding war that sent SM’s stock price to a record high. Bae’s lawyer has denied the charges, saying the SM stock purchase was legitimate.
Country Garden denies reports that founder and chair have left China
Country Garden denied Chinese media reports that its founder and chair had left the country, as the indebted property developer struggles to pay its debts.
The company said in a statement on WeChat, the social media platform, that its founder Yang Guoqiang and its chair — his daughter Yang Huiyan — were both “working normally within the country”.
Country Garden has approximately $200bn in liabilities, about $10bn of which is dollar-denominated debt. It missed a due payment of HK$470mn ($60mn) on some debts earlier this month and warned on Tuesday that it expected it “will not be able to meet all of its overseas debt repayment obligations” when they are due.
Asian equities down as US Treasury yields push to fresh 16-year highs
Asian equities declined on Thursday as US Treasury yields surged to multi-year highs.
Japan’s Topix fell 0.8 per cent and South Korea’s Kospi dropped 1.3 per cent. China’s CSI 300 and Hong Kong’s Hang Seng index lost 1.7 per cent and 0.9 per cent, respectively.
US yields, which move inversely to price, rose after reaching multi-year highs the previous day. The yield on the 10-year note added 0.04 percentage points to 4.94 per cent, its highest in 16-years, while the yield on the two-year note gained 0.02 percentage points to 5.24 per cent.
Rising yields depressed US equities on Wednesday, with the S&P 500 falling 1.3 per cent and the Nasdaq Composite shedding 1.6 per cent.
What to watch in Asia today
Economic data: China publishes new home prices for September amid concerns over the health of its property sector. Japan releases trade figures.
Companies: Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, reports third-quarter results.
Markets: Futures in Hong Kong and Tokyo pointed lower on Thursday. US stocks languished on Wednesday as investors processed the latest surge to multiyear highs for Treasury yields. The S&P 500 fell 1.3 per cent and the Nasdaq Composite shed 1.6 per cent.
Bud Light maker extends support to wholesalers in comeback effort
The maker of Bud Light is extending the timeline for financial support it has offered to wholesalers as part of an effort to reclaim its former position as America’s top beer.
Anheuser-Busch InBev said it would continue to cover a fuel surcharge for wholesalers and provide them with sales incentive payments until the end of 2024’s first quarter. The initiatives, announced in June, were originally meant to cease at the end of 2023.
Bud Light lost its place as the best-selling beer in the US following a backlash to an advertising campaign that featured transgender influencer Dylan Mulvaney. Soon after, the brewer’s revenues dipped and Constellation Brands’ Modelo Especial took the top spot.
US stocks sink as higher Treasury yields weigh on sentiment
US stocks languished on Wednesday as investors processed the latest surge to multiyear highs for Treasury yields.
The benchmark S&P 500 lost 1.3 per cent in afternoon trading, with materials, industrials and consumer discretionary the worst-performing sectors. The tech-heavy Nasdaq Composite fell 1.6 per cent, with all of the Magnificent Seven Big Tech stocks weakening. Chipmaker Nvidia fell nearly 4 per cent.
The yield on the 10-year US Treasury note rose 0.06 percentage points to 4.91 per cent, after reaching a 16-year high at 4.93 per cent. The yield on the 30-year Treasury bond rose 0.05 percentage points to 5 per cent.
Tesla reports weaker profits as price cuts shrink margins
Tesla’s revenue fell short of Wall Street’s reduced expectations in the latest quarter and its core profit margins sagged, as planned factory shutdowns and price cuts dented the US electric car maker’s performance.
Tesla reported net income in the latest period of $1.85bn, down 44 per cent from a year before, while earning per share fell 37 per cent to 66 cents, below analysts’ expectations.
Tesla’s shares were little changed in after-market trading as investors looked past what many see as a trough in its profit margins, which reflected the impact of price cuts made earlier in the year to stoke demand.
Netflix plans price rises after blowing past subscriber expectations
Netflix added 9mn streaming subscribers in the third quarter, blowing past Wall Street forecasts of about 6mn, and said it planned to raise prices in the US, UK and France.
In the US, basic Netflix subscribers will see their monthly bills rise by $2 to $11.99, while premium subscriptions will increase by $3 to $22.99. In the UK, a basic Netflix subscription will rise by £1 to £7.99, with premium memberships increasing by £2 to £17.99.
Shares of the company rose more than 9 per cent in extended trade.
The company said its push to end rampant password sharing has improved its subscriber and revenue growth over the past two quarters, adding that the “cancel reaction” has been lower than expected.