The Italian label wants Hong Kongers to stop burning paper versions of its $3,000 handbags at relatives’ graves. While it has a point, legally speaking, Gucci’s ire is misplaced. Wanting to spend the afterlife with a Gucci handbag is the ultimate pledge of brand loyalty.
Top lenders like ICBC and BOC are piling up bad loans yet still reporting flat earnings. Pliable regulators are cutting them extra slack. Investors did not trust the banks’ balance sheets anyway. The latest sleight of hand will only fuel their scepticism.
Investors are fretting about Raghuram Rajan’s future. The RBI governor, whose term expires soon, has helped make the nation a global bright spot and pushed to fix banks’ bad debts. Now Rajan, or whoever replaces him, faces a test to bed down reforms and keep India on track.
The world’s most aggressive central bank has wrong-footed investors by holding policy steady even as the backdrop weakens. There are reasons to hold back: a previous push into negative rates is still bedding down, for example. But markets could have been let down more gently.
Sales are soaring yet earnings fell 19 pct last quarter at China’s top search engine. Baidu is finally outlining how a costly push into food, movies and maps fits with its main search business. But investors still have little insight into how and when this will start paying off.
The $1.5 bln the miner will raise from selling its Brazilian phosphate and niobium units is better than might have been expected. A multiple of 10 times EBITDA proves the company can still get a good price even in a downturn. Anglo is slowly but steadily sharpening its focus.
Strong sales of the new Galaxy S7 helped the Korean giant make $3.4 bln of quarterly operating profit from phones. Unlike Apple, Samsung has not bet so boldly on Chinese growth. Its success rests on more mundane factors, like cost cuts, promotional deals, and good design.