A stake in the Chinese e-commerce group makes up over half the U.S. internet firm’s value, a Breakingviews calculator shows. When investors can buy Alibaba shares directly - potentially next month - Yahoo chief Marissa Mayer will find herself under a narrower, brighter spotlight.
The Japanese chat app reported a 26 pct jump in revenue from the previous quarter, pushing up valuation expectations ahead of its planned IPO. Yet Line’s valuation hangs on an assumption that new overseas users will spend like those back home. That seems like wishful thinking.
A $1 bln fundraising by Flipkart underscores a China-like opportunity. Yet rivalry will be fierce, because the market is more open than the Middle Kingdom. The ambitions of companies like Amazon and eBay make it unlikely India will create a home-grown answer to China’s Alibaba.
Money market funds like the one linked to Alibaba are buying longer-term assets to bolster yields. That could create a crunch if savers realise their assets aren’t as safe as cash. Freeing up bank deposit rates would remove the distortion that fueled the boom in the first place.
Investigating ex-security chief Zhou Yongkang shows China’s president is firmly in charge. That may help sustain faith in the Party. But other institutions need a scrub too. Exposing the money trail, and those who help the rich and mighty bypass the rules, is a logical next step.
The Japanese investment bank’s fixed-income arm is unfazed by broader gloom. Revenue increased 7 pct in the latest quarter. The lack of an old, bad trading book probably helps. It’s hard to tell, though, just how Nomura outflanked rivals, and thus whether success is sustainable.
Seoul has loosened limits on mortgage borrowing to rescue GDP growth. The real problem, though, is two years of below-target inflation. That has hurt consumption by keeping the real value of household debt too high. Bold monetary easing might be more helpful.