FirstFT: SoftBank expects $34bn gain after handing over Alibaba shares


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Good morning SoftBank remains in the news today after the company made the announcement posted a profit of more than 34 billion US dollars by divesting part of its stake in Chinese e-commerce group Alibaba. The move marks a historic shift in the Japanese group’s relationship with its best-known investment.

SoftBank had entered into a series of complex derivatives deals that allowed it to raise cash while retaining the option to buy back Alibaba shares later. But the company said last night the right would now be relinquished entirely as many of the deals would be preempted in shares.

The decision marks a definitive step back from the 22-year gamble on which Masayoshi Son has built his name as one of the world’s largest technology investors.

SoftBank’s reduced stake in Alibaba will bring the Japanese group below the threshold to retain its seat on the Chinese e-commerce giant’s board and prevent SoftBank from continuing to recognize its share of Alibaba’s earnings in its financial statements.

Thanks to the readers who took part in our survey yesterday. Sixty-one percent of respondents said SoftBank should remain private. Thank you for reading FirstFT Asia – Emily

1. Japanese Prime Minister reshuffles cabinet Fumio Kishida has remodeled his cabinet for the first time since the assassination of former leader Shinzo Abe last month, amid dwindling public support and renewed tensions between the US and China. Analysts say the move puts Japan on track to increase defense spending and restart its nuclear power plants.

2. Foxconn stake in Chinese chipmaker under scrutiny Taiwanese security officials want to force the Apple supplier to do so complete an $800 million investment in Tsinghua Unigroup as Taipei seeks to align itself more closely with the US in the face of escalating threats from Beijing.

3. Investors avoid Pakistani bonds due to increasing risk of default investors are on alert for Pakistan to follow Sri Lanka defaulted as the South Asian country grappled with rising commodity prices and tighter credit conditions. Pakistan’s foreign bonds maturing in 2024, 2025 and 2026 are trading firmly in distressed territory, according to Bloomberg.

4. Trump pleads for investigation of Fifth in New York donald trump refused to answer questions at an affidavit of his dealings on Wednesday in a New York state probe, citing his constitutional right against self-incrimination amid mounting legal troubles.

5. Nasdaq rallies more than 20% after US inflation eases US stocks gathered on Wednesday, with the tech-heavy Nasdaq Composite Index closing more than a fifth above the lows hit earlier this year after new data showed inflation is stabilizing in the world’s largest economy. US consumer prices rose 8.5 percent year-on-year in July, beating economists’ forecast of 8.7 percent.

The day ahead

Japan mountain day The Tokyo Stock Exchange will remain closed on Mountain Day, Japan’s newest holiday celebrating the country’s natural beauty.

Sinovac results The Chinese biotech is expected to report first-quarter results. Most of the Chinese public has been vaccinated with inactivated vaccines from Sinovac and the state-owned Sinopharm, but researchers have said this technology is producing a weaker immune response as mRNA vaccines.

The PGA Tour playoffs begin A US judge has declined a request of three professional golfers to play at a PGA Tour event in Memphis, Tennessee today after defecting to the LIV Golf Circuit, a start-up league backed by Saudi Arabia’s sovereign wealth fund, this summer.

Join us in person or online on Saturday 3rd September at the FTWeekend Festival for a day of debates, tastings, performances and more. Hear from speakers such as Great British Bake-Off winner Nadiya Hussain, MP and former Health Secretary Jeremy Hunt, Ukrainian chef Olia Hercules and psychotherapist Esther Perel. Claim a £20 discount on your festival pass with the promo code FTWFxNewsletters.

What else do we read?

Taiwan’s soft-spoken president draws China’s anger Beijing was angry at Tsai Ing-wen after defying warnings and welcoming US House Speaker Nancy Pelosi to the island. But caution is the hallmark of Tsai’s leadership.

What’s next for Brittney Griner – and for women’s sport? Griner is currently the most famous basketball player in the world, but not because of her two Olympic gold medals or her five professional championships in the EuroLeague and the WNBA because it has become a political pawn.

What the collapse of Missfresh means for China’s tech sector In China, the pace of settlement was Missfresh met with shock but seemingly little remorse. President Xi Jinping’s crackdown on the country’s burgeoning tech sector has changed public perceptions of what constitutes innovation.

“Careful” work to contain the wildfires in California In Napa Valley are private groups and local businesses do what they can to protect the country from catastrophic fires. In California, a state with 33 million acres of forest that has been affected by drought for much of this century, fires have reached unprecedented proportions over the past two years, according to Cal Fire.

  • go deeper: To understand the most important climate data of the week, Register to our Climate Graphic: Explained Newsletter.

The pressure on global supply chains is easing – for now After a tumultuous 18 months – triggered by what industry experts are calling a “perfect storm” of factors – the latest data are pointing to a return to relative calm. But the road to pre-pandemic conditions, where just-in-time deliveries had become the norm, is fraught with riskwrites Valentina Romei.

Try it now. . .

Learn how to make a sour-spicy silken tofu with avocadowith a simple yet delicious healthy dish based on a popular Chengdu street snack.

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