The Spanish group is chasing deals worth 1.8 bln euros in three countries including Australia. The spree echoes its 2006 pursuit of airport operator BAA, which nearly dragged it down. But these acquisitions look less risky. Thanks to savvy sales, Ferrovial has cash to spend.
Strict controls should shield China from flighty foreign capital. In practice, investors have snuck in at least $725 billion of short-term money since 2008. That makes the economy vulnerable to outflows. Central bankers are saddled with preventing a trickle becoming a flood.
Property investment is slowing sharply, dragging GDP and commodity prices with it. So far, China’s planners have mostly stood by. Letting market forces operate could bring financial disruption. But unwinding the massive oversupply of hastily-built housing has to start somewhere.
Joko Widodo’s inauguration as president lacks the ebullience of his July election win. Investors still expect an early attack on lavish fuel subsidies. But they are right to worry about the surprisingly strong opposition coalition and its nationalistic, anti-democratic rhetoric.
Pro-democracy demonstrators are clouding luxury sales in the Chinese territory. Yet the movement’s symbol has cast a light on Jicheng Umbrella’s upcoming listing. International brolly sales are on the up. After the smoke clears, however, the main worry is rising labour costs.
The city’s business leaders have outsize influence over local politics. Relaxing their grip on special corporate votes would be a symbolic gesture to pro-democracy activists – and may help preserve the stability that has served tycoons, and their investors, so well for so long.
Japan’s prime minister has lost two high-profile cabinet members and hinted at delaying a sales tax hike. Growth is sputtering as the world economy slows. Yet reforms are still going ahead. The key to Shinzo Abe’s success is maintaining the confidence of investors – and voters.