Ramen IPO may be worth slurping up 1 Dec 2017 Japan's Nissin is taking public its Greater China business at a valuation of about HK$4.1 bln, or $525 mln. Broader demand is falling, but the company is tapping into millennial interest in posher packaged carbs. Compared to where rivals trade, these noodles could be tasty.
Global giants see Vietnam through beer goggles 1 Dec 2017 The young, hops-happy country is in the sights of big brewers like Asahi and AB InBev. Global growth is as dull as a flat pint. But the presence of entrenched interests, tech-like multiples and the mixed experience of early players should give pause.
Viewsroom: Uber’s hard route back onto the road 30 Nov 2017 The ride-hailing app has hit a damaging set of speed bumps including accelerating losses, a bruising court battle with Alphabet and covering up a security breach. But new Chief Executive Dara Khosrowshahi’s most important challenge is proving the firm can handle the long haul.
GM drives towards self-disruption 30 Nov 2017 The biggest U.S. automaker reckons its technology and expertise give it the edge in autonomous vehicles, and that it could one day make more money at better margins from robo-taxis than its current business. That’s a challenge to how investors think as much as to Uber and Google.
Guest view: Bitcoin bubble obscures real worth 30 Nov 2017 Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.
Botched process leads to Frankenstein tax plan 30 Nov 2017 U.S. Senate Republicans are rushing into a vote on their tax-cut effort. Changes to appease GOP critics have yet to be settled, including a trigger to raise taxes if growth falls short. Lower-income Americans will also face higher bills. Lawmakers are creating a scary mess.
Saudi needs OPEC cuts to work, but not too well 30 Nov 2017 The oil cartel agreed to extend cuts until the end of 2018. Its moderation has drained inventories and lifted prices. Further cuts won’t boost prices enough to balance Saudi’s budget. Then again, that gives the crown prince a reason to continue with his challenging reforms.
U.S. doesn’t even have a corporate tax problem 30 Nov 2017 Proposals in Congress would cut the levy on companies and, temporarily, on individuals. The move may give a late-cycle boost to the economy but add to the deficit and debt. The irony is that corporate profit is already plentiful while Uncle Sam's tax take is historically low.
Cox: Trump bump aside, U.S. stocks lag in 2017 30 Nov 2017 The president has unprecedentedly staked his political colors to the mast of rising equity prices, calling the S&P's rally a validation of his policies. Yet most other markets around the world have done even better. There are bigger forces at work than U.S. corporate tax rates.
Indian economy shaking off Modi’s shock therapy 30 Nov 2017 Growth of 6.3 pct last quarter suggests fallout from the premier's policy pileup is fading. He’s leading a bold drive to improve the way India is governed. Getting a few more things right, like the resolution of bad debt, is a precondition to turn this into a solid economic run.
Investment bank weighs on Credit Suisse turnaround 30 Nov 2017 CEO Tidjane Thiam played down the Swiss bank’s capital markets business in a shareholder presentation on Nov. 30. Yet the unit brought in 45 percent of net revenue in the first nine months of 2017. Achieving double-digit return targets depends on Thiam finding more costs to cut.
Daily Mail finally succumbs to media malaise 30 Nov 2017 The right-wing tabloid’s parent said revenue in its media unit will shrink in the year to next September, after growing 1 pct previously. The same affliction has already hit rival groups. A turbulent time for web publishers also raises doubts about newly-profitable MailOnline.
Altran’s U.S. excursion needs precision execution 30 Nov 2017 The French engineering consultancy is buying KKR-controlled software specialist Aricent for 1.7 bln euros. There’s little overlap between the two, and cost savings may be hard to pull off. Still, rapid technological change and cheap borrowing make it a good time for bold deals.
Australia’s Aristocrat makes reckless mobile bet 30 Nov 2017 The $11 bln group's shares slumped on plans to buy online games firm Big Fish for $1 bln. A wobble in tech stocks probably doesn’t help. But the deal looks pricey, Big Fish’s recent performance is weak, and the rationale for uniting slot machines and mobile games is thin.
Bank of Korea had best go slow with rates 30 Nov 2017 Seoul’s first increase in benchmark borrowing costs for more than six years is a prudent step toward normalising monetary policy, given signs of economic strength. But crushing consumer debt and a housing slowdown mean the central bank must tread carefully.
Rio Tinto holds valuable card in Jakarta deal 30 Nov 2017 As Freeport-McMoRan thrashes out terms for handing over a majority stake in the Grasberg copper mine to Indonesia, Rio's production arrangement dating back to 1995 gives it an effective veto. The best way to play this ace up its sleeve would be to negotiate a graceful exit.
Alibaba and the 40-year bond is one tall tale 29 Nov 2017 The e-commerce giant is selling the longest fixed-maturity paper ever by a Chinese company. Jack Ma’s outfit is smart to lock in cheap funding while it can. But with Beijing looking to influence the tech sector, investors should think hard about four decades of political risk.
Yellen gives Congress parting shot on growth, debt 29 Nov 2017 The outgoing Fed boss warned of growing deficit risks just as lawmakers weigh tax cuts that would exacerbate it. It’s also up to politicians to improve education, investment and infrastructure spending. Her message of central bank limitations is one her successor will echo.
Hadas: Bitcoin at $10,000 is even more dangerous 29 Nov 2017 The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.
Fidelity gets flexible in fight with index funds 29 Nov 2017 The asset manager’s UK offshoot will charge clients a variable rate depending on how managers perform. Yet even if they do a bad job, investors could still pay over four times the rate for a passive fund. Fidelity’s model is a step forward, but fees are still coming down.
Sexual misconduct will haunt 2018 annual reports 29 Nov 2017 This year brought revelations of companies using shareholder bounty to settle allegations male executives harassed and made unwanted advances on mostly female workers. In the coming proxy season, expect investor proposals pushing for greater disclosure and action on the issue.
Uber’s year of efficiency backfires 29 Nov 2017 The ride-hailing app’s 2017 goal was to grow while minimizing subsidies and cash burn. Instead, quarterly losses accelerated to nearly $1.5 bln. Uber faces a slew of problems, but has yet to answer a basic existential question: can it develop a sustainable business model?
Chipotle wraps succession up in rotten governance 29 Nov 2017 The embattled burrito chain’s founder Steve Ells is stepping down as CEO but becoming executive chairman. That puts too many bosses in the kitchen and may hamper the new chief’s ability to stir in much-needed new ingredients. It’s a maneuver other companies have come to regret.
UK plays weak hand badly in Brexit poker 29 Nov 2017 The country has reportedly bowed to EU demands that it pay up to 100 bln euros when it leaves the bloc. Months of haggling have wasted time and goodwill even before the start of talks on trading arrangements. The outcome shows the UK has a lot less leverage than it pretends.
LSE boardroom ceasefire is least bad outcome 29 Nov 2017 CEO Xavier Rolet is leaving the London Stock Exchange immediately, ending an activist campaign for him to stay on. Chairman Donald Brydon will step down in 2019. The compromise averts a longer and more damaging public row. But nobody emerges from the saga with much credit.
Cineworld bid for Regal smells of rotten tomatoes 29 Nov 2017 The British group could make a $3.6 billion bid for the second-largest U.S. movie-theatre chain. It might boost lowly margins and strike better deals with studios and distributors. But a huge equity hike and threats from digital streaming make for a bad picture for investors.
Nomura makes timely return to merchant banking 29 Nov 2017 The Japanese group that once had Guy Hands investing money for it is starting a new $900 mln buyout fund. There are potential pitfalls, like client clashes and politically-driven deals. If they're avoided, though, Nomura could use its plentiful capital to generate solid returns.
Trump gives Xi first taste of trade acrimony ahead 29 Nov 2017 The afterglow of the U.S. president’s trip to China faded fast. Unimpressed by Beijing's progress on North Korea and market opening, he is taking an aggressive stance on aluminium dumping. This sets the stage for uglier, more economically significant fights on trade.
China credit move a plus for twitchy web lenders 29 Nov 2017 The web finance watchdog will create a credit rating platform with private companies including Tencent, says China Daily: a healthy development in a messy industry. But forcing big players to share too much proprietary data could dilute competitiveness and discourage innovation.
Fast-food deal cures activist indigestion 28 Nov 2017 Buffalo Wild Wings is selling to private equity-owned Arby’s for $2.4 bln. It ends the chicken restaurant’s bruising 17-month fight with Marcato. The juicy 38 pct premium also salvages a decent return for the pushy investor whose stake looked like it was heading for slaughter.