Home Business and Economics This Week in Business: China, Softbank, and More

This Week in Business: China, Softbank, and More

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China Considers $10Bn Investment

China is currently in talks to invest $5-$10Bn in Saudi oil giant Aramco’s planned initial public offering. Currently, Beijing-based Silk Road Fund, state-owned oil producer Sinopec Corp, and sovereign wealth fund China Investment Corp are among some of the companies that have been in discussions to buy stock in the offering.

Right now, commitments are not set in stone. In addition, investors and sizes ultimately depend on the Chinese government. Aramco started its IPO on Sunday when it announced its intention to float on its domestic stocks. Right now, the Saudi kingdom seeks to diversify its economy away from oil. However, Aramco, Silk Road Fund, Sinopec, and China Investment Corp did not immediately respond to requests for comment.

Softbank Regrets WeWork Investment

The boss of Softbank admitted to poor judgment in regards to their investment in WeWork. Recently, Softbank reported its first quarterly losses in 14 years. Chief executive Masayoshi Son said: “My judgment around WeWork was not right in many ways.”

The firm recently wrote down the value of its investments in both WeWork and Uber. It also reported a 704Bn yen loss, mostly from those two write-downs. Son said on Wednesday: “I overestimated Adam Neumann’s good side… I have learned a harsh lesson from my experience with Adam Neumann. Mr. Neumann retains a stake in WeWork and will stay on at the company as ‘an observer’.”

US-China Trade Deal Could Be Delayed

A trade deal between the US and China could be delayed until December. Currently, the two countries are discussing the terms and the venue. A White House official said it was still possible they would not reach a “phase one” agreement aimed at ending a damaging trade war. However, a deal was more likely than not.

Japan Scraps 10 Bullet Trains After Typhoon

Japan scrapped 10 partially submerged bullet trains after last month’s Typhoon Hagibis. They could still use some components, but the loss of the trains could cost between $110m and $135m. The trains sat in a yard in Nagano city. Typhoon Hagibis hit with winds of 140mph, killing about 90 people and displacing thousands. It was the country’s worst storm in decades.

Boeing To Invest $1Bn In Global Safety Drive

Boeing is planning to invest $1 billion into industry-wide pilot development. This is part of a long-term initiative to reduce risks like those the crew in the 737 MAX crashes faced. Boeing plans to launch the pilot development project after regulators approve changes to 737 MAX software and training. The company expects approval to happen by the end of the year.

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