Selling 51 pct of its Chinese networking unit for $2.3 bln to a state-owned company looks like a partial retreat from an unfriendly market. But the U.S. tech giant now has a powerful ally with deep ties to Beijing. Rivals from Cisco to Microsoft should consider similar matches.
The mystery collapse of Hanergy, Goldin Financial and Goldin Properties wiped $44 bln off their market values in two days. But actual losses for those who bought during the rally in recent months are far smaller. Big numbers aren’t always what they seem – especially in China.
Regulators are probing Hanergy, whose $40 bln value halved in a morning. Two once-hot stocks backed by Goldin Group have also plunged. Hong Kong wants to act as a gateway to China for global investors. So maintaining a transparent, orderly market is more important than ever.
Worries that the IRS may block the company’s mooted spinoff of a $34 bln stake in Alibaba sent Yahoo shares tumbling. The reaction suggests the U.S. internet grab-bag is still largely defined by the Chinese e-commerce giant, not what CEO Marissa Mayer is trying to build.
Najib Razak has vowed to make the country rich by 2020. Investors are wary. The opposition chief is in jail, race relations are tense, and a scandal-plagued state investment fund has hurt the prime minister’s authority. A slumping ringgit shows there could be trouble ahead.
Our Abenomics Index hit its highest level since 2001 in March, while fresh GDP data showed Japan’s economy growing at the fastest pace in a year. A rising stock market and slight increases in wages and consumer prices overcame higher bond yields to pump up the reading.
The standard measure of output is a useful indicator of short-term trends. It can also help compare levels of development. In poor countries, faster GDP growth is a good policy goal. But in richer countries, GDP-think misses important economic changes and challenges.