Hadas: Be thankful for good economic news 23 Nov 2017 The launch of bitcoin futures contracts grabs headlines, but has no weight on the scales of history. A half-century of sharp declines in global misery is another matter. This may be the greatest economic achievement ever. Be grateful - and angry at how much is still not done.
Altice’s Caribbean selloff signals shrinking ambition 23 Nov 2017 Patrick Drahi’s telecom and cable group may dump its Dominican Republic unit just four years after buying it. That adds credibility to the entrepreneur’s plan to cut debt by flogging assets. It also underscores that Altice’s days of heady, M&A-led growth are firmly in the past.
Britain’s RBS garage sale priced for messy Brexit 23 Nov 2017 Chancellor Philip Hammond intends to raise 15 bln pounds to meet fiscal targets by selling the state’s Royal Bank of Scotland shares. He could achieve that even if the shares tumble 30 pct, Breakingviews calculates. Given the wobbly economic outlook, some wiggle room makes sense.
India eyes governance brute force to check tycoons 23 Nov 2017 A proposal to follow the UK and require listed companies to have separate chairmen and CEOs is heavy-handed. It comes amid an effort in India to learn from past mistakes that have brought a mountain of bad debt, but an overly prescriptive approach risks unintended consequences.
China’s new energy star brandishes licence to deal 23 Nov 2017 Even as outbound M&A slows, privately held CEFC emerged from nowhere with bids for stakes in Russia's Rosneft, Czech banks and a U.S. brokerage. Now it's eyeing Time Warner's European TV broadcaster. This enigmatic buyer may stoke paranoia about Beijing's investment intentions.
Indonesia can close gap with tiger cub neighbours 23 Nov 2017 Stellar growth in Singapore, Vietnam and elsewhere means Indonesia is the laggard in a booming region. President Joko Widodo could do more to catch up, moving faster to upgrade infrastructure. Reassuring foreign firms by solving an ugly mining dispute would help too.
Sabotaging Obamacare backfires on Republicans 22 Nov 2017 President Trump claims his predecessor’s health-insurance program is dying. He and the GOP have eliminated some subsidies and slashed marketing. Yet the pace of enrollment has risen from last year. The political cost of efforts to kill the program is rising.
The Exchange: Jim Rogers 22 Nov 2017 The longtime Asia bull and Quantum Fund co-founder thinks the worst bear market of his lifetime is coming. He swung by our Hong Kong bureau to discuss the risks, as well as Trump’s Asia tour and why America could become its own worst enemy if it lets China dominate the region.
Fed eggheads scramble online-loans takedown 22 Nov 2017 Analysts at the central bank’s Cleveland unit had to pull a study claiming peer-to-peer lending was highly risky after its data was questioned. It’s a tricky sector to define and worsening consumer credit is a concern. But the Fed’s hasty conclusion tarnishes its own reputation.
P&G’s battle with Peltz is practically poetic 22 Nov 2017 The consumer giant fights on with Peltz, backed by hubris and nothing much else. Insularity remains, causing new corporate stains - as the activist readies fresh welts.
Hammond struggles in Brexit straitjacket 22 Nov 2017 The UK budget contained giveaways to homebuyers and the health service, funded by asset sales and accounting fiddles. But bleak growth forecasts limited Chancellor Philip Hammond’s generosity. Weak productivity growth will add to the economic pain of leaving the European Union.
Emerson’s $29 bln bid for Rockwell has a big flaw 22 Nov 2017 That’s the fact that much of the takeover approach, while reasonably priced, is in Emerson stock. Rockwell’s board is using that to justifiably question the bidder’s long-term plan, and questionable synergy estimates. It’s hard to see how anything other than cash can win the day.
Uber cover-up makes new boss’s job even harder 22 Nov 2017 The ride-hailing app paid off hackers but didn’t tell regulators, or 57 mln people whose data might have been exposed. It’s an ugly coda to ex-CEO Travis Kalanick’s irresponsible reign. With Uber’s London future, for one, in the balance, Dara Khosrowshahi has his work cut out.
Chinese micro-lender has big problems 22 Nov 2017 Beijing is clamping down on online outfits that issue small-ticket loans to Chinese consumers. The regulatory uncertainty has spooked investors in the rapidly growing industry. It is another reason why New York listing hopeful LexinFintech may have a tough ride.
Akzo’s no-deal still worse than a good deal 22 Nov 2017 The Dutch paint maker is temporarily solo after talks with U.S. peer Axalta foundered. That combination, good on paper, was challenged by the two companies’ uneven size and likely job cuts. Even so, Akzo’s future if it’s determined to remain single is unappealing.
Dutch Brexit red carpet hastens tax race to bottom 22 Nov 2017 The country’s new government plans to slash corporate taxes and cancel a levy on dividends paid overseas. One reason is to lure multinationals unsettled by Britain’s departure from the European Union. It’s an expensive gamble that makes it likelier other nations will follow suit.
Berlusconi’s court fight has become a sideshow 22 Nov 2017 The Italian ex-premier, excluded from office in 2013 after sex parties and the euro zone crisis, is challenging the ban in Europe’s human rights court. A verdict before a spring election is unlikely, but for better or worse Berlusconi doesn’t need one to be a political kingmaker.
Nippon Paint’s run at Axalta looks off-colour 22 Nov 2017 The Japanese group has lobbed in a cash bid for its U.S. rival, Reuters reports, ending the target's merger talks with Akzo Nobel. A deal valued at some $12 bln including debt, even assuming hefty savings, would destroy value. Fulfilling global ambitions may be costly for Nippon.
Rio Tinto distracted by shiny new thing 22 Nov 2017 The mining giant is mulling a stake in $15 bln lithium producer SQM. Rechargeable-battery fever has helped lift the Chilean company's valuation to a tech-like multiple. Deals will return with industry growth, but after past mistakes including Alcan, Rio is looking late again.
China’s Skype crackdown invites messaging wars 22 Nov 2017 Apple removed Microsoft's internet phone service from the local store, as foreign call and chat apps get squeezed out of the market. Suppression also supports overseas expansion of homegrown tools Beijing monitors, like Tencent's WeChat. Chinese tech should gird for retaliation.
Silicon Valley gets lesson in Chinese corruption 22 Nov 2017 Lu Wei, the former head of the Cyberspace Administration of China, whom Mark Zuckerberg and Reid Hoffman courted, just got snagged in a corruption probe. It's a reminder that party trumps personnel. And that Lu's former agency is more than a censor. It now determines policy.
Meg Whitman’s good management of bad business ends 21 Nov 2017 She took over Hewlett-Packard when Silicon Valley's original success story was in unprecedented turmoil with three predecessors fired, a dysfunctional board and a welter of failed deals. By breaking it up, she brought stability. It's a track record that might work in politics.
Ditching SIFI tag only solves some bank problems 21 Nov 2017 Utah's Zions is lobbying watchdogs to nix its too-big status as lawmakers consider freeing similarly sized lenders from the constraints. The change may trim costs and let banks return more capital. But they're on their own to improve loan demand and avoid dumb credit decisions.
Activist lays multiple chips on silicon strategy 21 Nov 2017 In its latest semiconductor play, activist Starboard is seeking to push Israel’s Mellanox into a deal. It also owns a chunk of Marvell, a potential buyer whose prior approach was rebuffed. With technology and economics driving rapid consolidation, it makes sense to spread bets.
Legacy legal wrangles badly timed for Guy Hands 21 Nov 2017 The private equity tycoon who sued his adviser after the financial crisis is feuding with creditors of Four Seasons care homes. The battle hinges on whether lenders have a claim over some assets. The story of excessive and too-complex financing won’t help Hands’ next fundraising.
Trump administration scrambles media signals 21 Nov 2017 The DOJ wants to block AT&T’s merger with Time Warner over concerns the two will use content to stiff rivals. But another agency intends to scrap rules that force internet providers to treat web traffic equally. It’s a confusing mix that makes for a blurry regulatory picture.
WPP rebrands its weak Tokyo defence 21 Nov 2017 The advertising giant is selling into a $1.4 bln buyout it has argued “significantly undervalues” Japanese partner ADK. That reveals a weaker-than-billed negotiating position. One small consolation may be a flimsy plan to stick around by re-investing in the Bain-led deal.
HelloFresh barely clears low hurdles 21 Nov 2017 The German meal-kit service delivered soaring revenues and better margins for its first results as a listed company. Shares are down 2 percent since flotation. That is hardly a runaway success but better than shelved listings in Britain and U.S. rival Blue Apron’s public mauling.
Half-a-trillion-dollar Tencent is market headache 21 Nov 2017 The Chinese tech giant’s market value briefly hit $535 bln, making it bigger than Facebook. While Tencent has helped push Hong Kong’s Hang Seng index to near-record highs, the gains flatter a weaker wider market. Any correction would hit a multitude of investors.
Buffett-backed BYD could use a battery ram 21 Nov 2017 The carmaker’s stock almost doubled this year on China’s plans to rev up the electric-vehicle market. Founder Wang Chuanfu is targeting 1 trln yuan in sales by 2025. Yet earnings are flagging. To outpace nimble upstarts and powerful rivals such as CATL, BYD must scale up fast.