The Japanese electronics group has written down the value of its ailing mobile unit. Full-year losses are likely to hit $2.1 bln. Cancelling the dividend for the first time since 1958 suggests a grim outlook. The calamity may finally force Sony to confront its problems.
A reported injection of $81 billion via big banks equates to less than a month of credit. It won’t restore rapid growth, but may help cash-strapped companies pay their bills for a while. High debt and low liquidity are forcing authorities into increasingly intricate manoeuvres.
The buyout baron’s KKR is buying Pioneer’s DJ audio equipment business for $550 mln. It’s Abenomics meets Ibiza for the private equity firm’s latest trendy investment. Kravis is laying down a smooth groove in a funky M&A market, but could be late to the dance music party.
The People’s Republic wants to burn less dirty coal and not import too much gas. That’s why China is building half the world’s 63 new nuclear reactors. The listings of operators CGN Power and CNNC offer a way into the trend – for investors who can stomach the risk of a meltdown.
Japan wants to invest $34 billion in India. China’s pledge could be several times as large. Realizing these commitments, and digesting up to 12 percent of GDP in foreign capital over five years, will be tricky. The People’s Republic’s own growth strategy offers a useful template.
Boosting the maximum share price by 3 pct won’t affect appetite for the Chinese e-commerce giant’s $21 bln-plus offering. Investors appear more focused on Alibaba’s growth prospects than on governance risks. That points to a warm reception when it starts trading later this week.
Industrial and investment data for August were poor. Yet job creation, wages and retail spending – which matter most for ordinary people – look solid. While that justifies inaction for now, it is naïve to think the two realms can remain separate. Real estate is the vital link.