South Korea’s shipping collapse will be contained 5 Sep 2016 The plight of shipping giant Hanjin is causing global ripples. It is emblematic of the strife facing the maritime industries that powered the rise of South Korea. Yet conglomerates and the state are making tough choices. That suggests Hanjin won't drown others as it sinks.
Yum’s new China backers add spice at a price 2 Sep 2016 The KFC owner is selling a slug of its China unit to Alibaba's mobile-payments arm and a firm run by former Goldman Sachs partner Fred Hu. Together, they bring tech nous and connections. It's a better deal than usual for cornerstone investors, but may pay off for Yum's spinoff.
Trump’s dystopia gives gun sellers bright outlook 2 Sep 2016 In a quarter that included the Orlando shooting and the NRA endorsing the Republican presidential candidate, Smith & Wesson reported a 40 pct surge in sales. It also lifted its guidance. Big business may not be getting behind Trump, but he is helping one corner of capitalism.
U.S. college industry being pushed back to basics 2 Sep 2016 An owner of higher-education institutions is suing the Obama administration for blocking their move from for-profit to non-profit status. Wanting better student results in exchange for federal funds makes good business sense. Colleges have more to learn about simple economics.
Review: NBC chief’s deal-heavy memoir merits split 2 Sep 2016 Bob Wright engagingly takes readers behind the scenes of how he built the U.S. network over two decades at General Electric. Negotiations with Jack Welch, Bill Gates and Ted Turner enhance the drama. A moving ending about autism, however, would have better suited a second book.
U.S. employers give Fed a lame excuse 2 Sep 2016 The country added 151,000 jobs in August, fewer than were expected, while wage growth also was muted. Even so, the gains over three months have been solid alongside decent economic signals. It's beyond time to raise interest rates, but Janet Yellen now has pretext to stall again.
Spanish utility seeks credulous new investor 2 Sep 2016 Oil firm Repsol and industrial group Criteria Caixa want to offload 20 pct of Gas Natural. A potential 4 bln euro deal would simplify things for the two sellers. A buyer, though - most likely a private equity or infrastructure investor - would be taking a fair bit on trust.
Dublin faces fiendishly tough call on Apple appeal 2 Sep 2016 Ireland has a stark choice: take 13 bln euros from the tech giant in back tax and hurt its standing with multinationals, or keep its national business model intact. With Brexit looming, the safe choice is to appeal. But the country has more scope to annoy Apple than it did.
Deutsche capital fix lies in asset management sale 2 Sep 2016 Germany's biggest bank has considered selling its funds business. The upside for Deutsche Bank is a one-off capital boost; the downside a potential ratings downgrade and loss of steady earnings that offset investment bank volatility. But selling part of it could still make sense.
State spending revival would be good for growth 2 Sep 2016 As central banks struggle to boost economies, world leaders meeting at the G20 are once again looking to government-led investment. Ultra-low sovereign yields make borrowing to spend look a no-brainer. But even a small stimulus can face formidable political hurdles back at home.
China banks’ shadow addiction needs harsher remedy 2 Sep 2016 Recent curbs on lucrative shadow lending haven't done the job. Shadow loan portfolios at some smaller banks nearly doubled in the first half of this year. The $2 trillion business poses a growing threat to financial stability. Stronger medicine is needed.
Chinese fintech could help revive Hong Kong market 2 Sep 2016 Web groups like Alibaba snubbed the territory to float Stateside. A new breed of financial upstarts with few global peers may find Hong Kong more welcoming. A few multi-billion-dollar listings would cut the bourse's reliance on stodgy financial and property giants.
Deal math stumps rocket scientist Elon Musk 1 Sep 2016 Lazard spotted a $400 mln error in a SolarCity valuation used for its $2.6 bln sale to Tesla. The Musk-orchestrated deal already is fraught with controversy over governance, finances and industrial logic. If anyone should know how important basics are, it's an acclaimed engineer.
Drugmakers get their $2.3 bln worth in Washington 1 Sep 2016 U.S. lawmakers are prodding Mylan about EpiPen in the latest probe into rising prescription prices. Dozens of legislative proposals to rein them in have stalled over the last decade. No industry spends more than pharma lobbying Congress. The investment now faces its biggest test.
Nets IPO offers defensive front in payments war 1 Sep 2016 The Nordic payments firm is listing after just two years of private equity ownership. Valued alongside card network and processing peers, its equity could be worth $5 bln. New rules on digital banking may explain the timing, but Nets is less at risk than more niche players.
Orange takes calculated risk in Iran 1 Sep 2016 The French telco is set to invest in the Islamic Republic. Post-sanctions Iran remains too risky for banks, given the danger of financing the still-proscribed Revolutionary Guards. Orange seems to be betting its experience in other hotspots will help it manage any conflicts.
Mukesh Ambani’s telco insurgency threatens returns 1 Sep 2016 India's richest man is launching his new superfast mobile network with free voice calls, $45 handsets, and more goodies. The aggressive strategy may worry rivals like Bharti and Vodafone. Shareholders in Ambani’s own Reliance Industries will also fret about the $20 bln bet.
Europe may end up behind the curve on 5G internet 1 Sep 2016 Telecom companies claim the EU's new open-internet guidelines disadvantage them relative to U.S. and Chinese players. They're right that Europe may slip behind in the race for superfast internet, but net neutrality isn't the real enemy. Blame a highly fragmented market instead.
Spain’s driverless economy will run out of gas 1 Sep 2016 The acting prime minister just lost a confidence vote; Spain has gone all year without a government. Yet the economy is doing remarkably well, even with no one at the wheel. It’s unlikely that can continue through 2017. Dysfunctional politics will take its toll.