The People’s Republic is squeezing technology companies. New banking rules and counter-terrorism legislation could make it harder for foreign groups to operate in the expanding market. Is security just an excuse to protect domestic players? Breakingviews cracks the code.
The index closed above 20,000 for the first time since 2000. Though Japan’s bull market is more than two years old, a trade deal with the United States could make returns still sweeter for investors. Stronger corporate earnings and more money-printing could also boost equities.
State Bank of India is leading the rush to raise capital with a $2.4 bln share sale. A stronger economy makes bad debts look less bad. Investors will also have to believe a government pledge to meddle less in lending decisions. Even so, few banks look tempting.
TPG and others are buying Montreal-based Cirque du Soleil at a $1.5 bln valuation. That’s over $1 bln less than the price secured by founder Guy Laliberté in an ill-fated 2008 sale to Dubai. Recent shows have struggled, though, and hoped-for Chinese growth could easily stumble.
The Japanese conglomerate is the natural buyer of the portal should the U.S. search group offload its 36 pct stake. But beefing up won’t impress investors struggling to see the value of its parts. A spin-off by Yahoo will up pressure for SoftBank to justify its business model.
Not all state governments will know what to do with an unanticipated $30 billion jump in their share of tax revenue this fiscal year. But that’s a short-term problem. Eventually, shifting spending from New Delhi to sub-national governments should boost India’s growth potential.
China Resources is sucking everything out of its Hong Kong-listed subsidiary except for Snow beer, the world’s best-selling suds. In accounting terms, minority shareholders actually end up slightly worse off. Still, the increased transparency should create a considerable uplift.