There’s a scene in “The Aviator” where Howard Hughes, played by Leonardo DiCaprio, narrows his eyes and says to Senator Ralph Owen Brewster: “You want to go to war with me?”
It came to mind when we were musing on the deepening troubles of Uber in South Korea, whose media regulator said yesterday it will report the car-booking company’s local unit to prosecutors for violating communications rules.
Uber’s been fighting the tide in South Korea for a while, with the Seoul city government declaring its smartphone app illegal in July.
The San Francisco-based company’s response was: you’re wrong. Uber is “operating legally” in Seoul, Allen Penn, the company’s Asia head, said the following month. Uber had reviewed the rules and obtained a legal opinion confirming its legality, he said.
So much for that. Prosecutors last month charged Uber CEO Travis Kalanick and the head of its domestic business partner with violating a transportation law.
Granted, Uber is a disruptive technology and
has ruffled feathers (and taxi drivers) around the world, running into regulatory and legal hurdles from Cape Town to Boston.
Still, there’s something to be said for picking your fights. Do they know where they are? Foreigners don’t have a great track record of taking on and bending the South Korean system to their will.
Maybe Uber should have a word with Lone Star Funds.
The Dallas-based buyout firm spent more than five years entangled with courts, regulators and lawmakers as it tried to sell its stake in Korea Exchange Bank, after winning control of the lender in 2003.
Lone Star was convicted of stock manipulation and two attempts to cash out were derailed by legal disputes, ultimately costing it almost $3 billion. The firm sold its stake to Hana Financial Group in 2011 for $3.4 billion -- almost 50 percent less than HSBC had offered four years earlier.
If that’s not enough of a deterrent, the folks at Uber might look up some footage of the shock-and-awe assault by South Korean farmers and unionists on the WTO meeting in Hong Kong in 2005. Hundreds vowed to stop the meeting and came within a whisker, battling riot police with bamboo sticks and steel bars.
Their cause: preserving South Korea’s agricultural markets from foreign competition. These guys can get quite protective.
Uber has made a habit of thumbing its nose at rules when it starts its services, forcing regulators to adapt as consumers embrace the app. We admire that spirit of Silicon Valley entrepreneurship and individualism.
Just bring a hard hat.
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A few minutes ago, South Korea reported GDP grew 0.4 percent in the fourth quarter from the previous three months, in line with estimates and the slowest pace in more than two years.
Today’s other key economic release is the China flash manufacturing PMI from HSBC, released at 9:45 a.m. and the first chance to gauge whether China’s economy is sustaining the pickup in momentum seen in December.
Other scheduled indicators include Singapore inflation at 1 p.m., Taiwan industrial production at 4 p.m. and Thailand foreign-exchange reserves at 4:30 p.m.
Companies reporting earnings in Asia include Kia Motors, Korean Air Lines, Samsung SDI, Hyundai Engineering, CapitalMall Trust and Tiger Airways.
U.S. existing home sales and the Conference Board’s leading index are among the economic indicators due for release tonight. McDonald’s and General Electric are among companies reporting earnings.
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- Bank of Japan Deputy Governor Kikuo Iwata addresses a conference in Tokyo at 9 a.m. - Thailand’s legislature votes on impeachment of former Prime Minister Yingluck Shinawatra this afternoon. - The ransom deadline for the Japanese hostages held by Islamic State expires today. Japan’s government says it has been unable to reach the group, which threatened to kill the two men within 72 hours unless a $200 million ransom is paid. - The World Economic Forum wraps up in Davos - Hutchison Whampoa said to near 02 Purchase for more than $15 billion - Draghi kicks off the QE era in Europe; markets surge - China’s regions cut growth targets as ‘new normal’ spreads - Japan’s welfare minister at odds with government over GPIF - Ping An buys Tower Place in City of London for $482 Million - Airlines’ deadly year prompts U.S. push for tamper-proof tracking - China to overhaul foreign investment rules - Yemen’s president resigns after confrontation with rebels - Royal Bank of Canada to buy City National for $5.4 billion - Stanley Fink’s ISAM said to gain 7% on day Swiss franc’s cap was removed - China developers face bond market freeze - Ebay cuts 2,400 jobs - Google prepares wireless service - Huawei eyes growth in Europe - More job cuts at banks seen in global investors poll _ Shorting emerging markets is a popular pick - Shakeout looms in China’s online lending industry - Court orders release of Indian activist - Tycoon calls top for China’s urbanization - The trickle-down effect of China’s anti-graft campaign - Air India turns hipster - India’s cricket chief told to drop one role - Serena Williams tested while Azarenka ousts Wozniacki at the Australia Open
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Everyone’s worried about the specter of deflation these days. In Europe, they’re so worried that Mario Draghi mustered up a plan to buy $1.3 trillion in bonds and the stock market loved it. Heck in the U.S., the deflation concern has even spread to the sports pages. Not only are Super Bowl tickets selling at the lowest prices in five years, but even those odd-shaped American footballs are deflating! No, not in price, rather literally running out of air! Supermodel husband and New England Patriots Quarterback Tom Brady had to endure speculation and conspiracy theories that his team softened the balls to protect his cuticles or whatever, not to mention endure all sorts of jokes about soft balls. Brady told a press conference that he has no explanation for the deflation. Of the balls, that is.
Of course, it will only get serious when deflation hits Wall Street paychecks, but so far so good. Goldman Sachs Group Inc.’s chief Lloyd Blankfein took home about $24 million in compensation for 2014. Jamie Dimon at JPMorgan Chase & Co. got his first cash bonus in three years but the board kept his pay unchanged at $20 million. That’s neither inflation or deflation, so we guess you just call that flation.
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Chinese Internet users have been transfixed by the World Economic Forum in Davos.
The Swiss gathering of the world’s rich and influential has been packed with weighty matters for discussion: the price of oil, possible deflation, global terrorism ... and Zhou Xiaochuan’s underpants.
A photo of the People’s Bank of China governor posted on the Weibo microblog provoked a flurry of comment after Zhou’s raised trouser leg showed he had been taking extra protection against the Alpine cold.
Long johns, or qiuku as they are known in Chinese, are regarded as unfashionable though often worn surreptitiously during the winter months in China. Some Weibo users berated Zhou for not dressing up in such august company, while others speculated that the West’s economy is now so weak that Davos was unable to provide proper heating.
Discussion of Zhou’s underwear even overshadowed the Davos speech of Premier Li Keqiang, who told attendees that China will avoid a hard landing and the government is focused on improving the quality of growth.
“Rather than talking about whether Zhou has worn thermal pants or not, we should watch how Premier Li puts on thermal pants for China’s economy in the winter,” Guan Qingyou, a researcher at Minsheng Securities, wrote in a Weibo post. “That’s more important.”
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Did Tim Cahill leave the Premier League too soon? The Australian, scorer of one of the goals of last year’s World Cup (some would say THE goal), did it again last night with a spectacular opener against China in the Asian Cup quarter-finals.
The striker looked to have nowhere to go when he received the ball with back to goal after an Australian corner, before twisting to send a perfect angled bicycle kick across the six-yard box and past Chinese goalkeeper Wang Dalei.
“Cahill has made a habit of scoring stunning goals for his country - most memorably his volley against the Netherlands in last year’s World Cup – but Thursday’s eye-popper was perhaps his finest,” the Guardian reported.
Australia went on to win 2-0, with Cahill also grabbing the second. Not bad for a 35-year-old. Looks like those corner flags have a bit more punishment to come.
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