Asia-Pacific

Jakarta is in a bind over interest rates

27 April 2018

Indonesian stocks are sliding alongside the rupiah, as higher U.S. yields prompt investors to sell out. But growth is tepid in Southeast Asia’s largest economy and an election looms. So the central bank is unlikely to follow through on talk of a hike, unless conditions worsen.

Australian hospitals operator given LBO lifeline

27 April 2018

An unwanted $3.1 bln offer values Healthscope only a bit higher than its 2014 IPO price. The deal is also being led by the same buyout executive who bought and sold the company for TPG. Healthy skepticism is warranted, but there's a chance to be discharged without further injury.

Review: China experts enter their own “New Era”

27 April 2018

Two new books from respected scholars try to make sense of the country under Xi Jinping. Both see it fast moving toward a more centralised political regime, with messy and probably unpredictable consequences. As interesting is the shifting mood among China analysts themselves.

Baidu’s revival adds speed to China’s AI race

26 April 2018

Quarterly earnings at China’s search giant topped $1 bln, trouncing expectations. Sales at its listed video arm, iQiyi, also jumped. Baidu may have been eclipsed by rivals like Alibaba, yet progress in autonomous driving is giving it an early lead in tech's next battlefield.

Nintendo aims splat bomb at Japan’s gerontocracy

26 April 2018

The maker of hit video game Splatoon is getting a 46-year-old boss. That’s refreshing in an ageing country where seniority counts for so much. Youth can be a liability too, as evidenced by the growing pains of Uber or Facebook. But Nintendo’s business is a young man’s game.

Diminished Deutsche Bank resembles cut-price BNP

26 April 2018

The German lender signalled the end of its global investment banking ambitions with cuts in the U.S. and Asia. New boss Christian Sewing plans to focus on Europe and more stable revenue sources. But low profitability hinders his plan to mimic continental rivals like BNP Paribas.

Nomura targets are so close and yet so far

26 April 2018

Weighed down by a legal charge, the Japanese bank's annual profit fell 8 pct to $2 bln. At least there were encouraging signs in trading and investment banking in the last quarter. With earnings at just 62 yen a share, though, Nomura will struggle to reach a goal of 100 by 2020.

U.S. squeeze could rally China tech behind Beijing

26 April 2018

Like rival ZTE, Chinese telecoms equipment giant Huawei could also be in trouble over sanctions. The duo’s woes show how vital U.S. parts are to global supply chains. Beijing, which has long dreamt of self-sufficiency in technology, could enlist help from the likes of Alibaba.

China’s bad banks go on, even if bad bankers don’t

26 April 2018

Huarong is humbled as graft busters oust its chairman and confiscate passports. The company is part of an aging group that evaded obsolescence by turning into distressed asset investors. With $270 bln of bank loans gone sour, Beijing needs to keep bad banks around.

Hadas: Debt overload is an easy problem to solve

25 April 2018

Three financial revolutions would be enough to bring down debt. Tax corporate debts, don’t subsidise them. Let the public share unearned gains on land. And replace government debt with newly printed money. These ideas may sound too radical – until the next mega-crisis arrives.

Xiaomi puts collective spin on tech IPO vows

25 April 2018

The Chinese firm says if net margins on its phones and gadgets ever top 5 pct, users will keep the spoils. Ahead of an IPO at a mooted value of up to $100 bln, this is a stunt worthy of Silicon Valley. It tells investors to focus on apps, and consumers that Xiaomi has their back.

Takeda’s stretch for Shire lets rivals limber up

25 April 2018

The Japanese drugmaker's fifth proposal for its Irish rival sweetens the bid to some $64 bln. The headline value, which uses a huge pile of stock for currency, is falling fast as Takeda shareholders recoil. That creates an opening for other suitors who can offer more hard cash.

Indian telecom tower M&A leaves room for more

25 April 2018

A union of Bharti Infratel and Indus Towers creates a $15 bln company with more masts than heavyweight rival American Tower. This paves the way for indebted telecoms backers, including Vodafone, to take out a special dividend or sell part of the merged group to a buyout firm.

Viewsroom: America puts ZTE in the sin bin

25 April 2018

The Trump administration’s decision to ban U.S. companies from selling to the Chinese telecom giant is seriously hurting the company's business. And there’s no easy plan B for ZTE. Also: China has a new way to measure unemployment. Should investors take it seriously?

Hong Kong opens doors to far-from-super governance

25 April 2018

Tech companies with super-voting shares could be trading on the city’s stock market from June. The new rules offer more safeguards than New York, but without the legal redress U.S. investors enjoy. Expect some big listings – and shoddy treatment of minority shareholders.

Indonesia’s green ploy for copper raises red flag

25 April 2018

New environmental rules complicate and delay already tricky negotiations over control of Freeport-McMoRan's Grasberg mine. Cleaning up is a good thing, but the timing smacks of strong-arm tactics. It's a cautionary tale to foreign investors about an economy with so much appeal.

U.S. sanctions rethink is only partly reassuring

24 April 2018

A Treasury decision to delay the effects of sanctions on Rusal and allow it to disentangle itself from Oleg Deripaska has boosted the shares of the Russian group. But it leaves U.S. policy harder to gauge. That doesn’t augur well for next month’s crunch decision on Iran.

Didi floors its way to a public listing

24 April 2018

The Chinese ride-hailing outfit may be steering toward an $80 bln IPO this year as Uber finds its way. Didi also is moving into Mexico, adding food delivery and exploring custom cars with the likes of Renault. It could be a bid to race to opening Hong Kong and Shanghai markets.

Hyundai agitator gets overly ambitious

24 April 2018

U.S. hedge fund Elliott wants better governance from the South Korean auto conglomerate, $11 bln returned to investors and higher dividends. Fair enough. As for structural changes, though, limitations on financial subsidiaries mean Hyundai is less likely to alter course.

Wesfarmers exposes its conglomerate discount

24 April 2018

By opting to spin off Coles Supermarkets, the $35 bln Australian group invites scrutiny of its coal-to-clothes hodgepodge. A Breakingviews analysis suggests a gap of 11 pct between its market value and the sum of its parts. It's enough to spur a fresh strategic review.