The software titan has for years been stuck in a piracy trap in China - many use its products, and few pay. Cloud-based services like Windows Azure are less prone to misuse. This time there are new problems: fierce competition, and politicians that favour domestic rivals.
While similar-sized peers pare back in fixed income, the Japanese bank has actually doubled its global market share since 2010. It’s even hiring. Success is part luck, part strategy. Nomura dodged much of the subprime crisis, and Japanese strength has suddenly come into its own.
Perennial budget deficits have helped to offset corporate deleveraging. That explains why public debt is so high. If Prime Minister Abe’s policies revive private investment, the government’s track record suggests it will tighten its belt by raising taxes. Tokyo won’t go bust.
Selling its final stake in lender ICBC leaves Goldman Sachs with an annual return on its investment of around 36 percent. HSBC, which just sold out of insurer Ping An after ten years, notched up a lesser 23 percent. The reason: the UK lender put strategic value before profit.
The Nikkei’s 7 pct drop is an overdue correction: the index had risen by two-thirds in six months. What’s striking is that the selloff was sparked by concerns over U.S. interest rates and Chinese growth, not Abenomics. Being a haven for risk-hungry investors has its drawbacks.
Solar panel prices are depressed, but irate Western manufacturers probably exaggerate the role of Chinese government support. While punitive EU tariffs and tit-for-tat Chinese retaliation might help profit, they would almost certainly make solar energy less competitive.
DBS can buy 40 percent of local lender Danamon, says Indonesia’s central bank, but no more. That’s of little use to the Singaporean bank, which is seeking control, or to the sovereign wealth fund which has stakes in both groups. Only political intervention can break the deadlock.