Chinese tax initiative strains overseas reach 15 Jul 2020 Beijing wants citizens to pay full whack no matter where they earn in the world, just as the United States does. The top bracket, at 45% for incomes over $137,000, makes low-tax Hong Kong less attractive at an odd time. Enforcing the rule further afield, though, could be tough.
UK’s Huawei red card has visible and hidden costs 14 Jul 2020 Removing the Chinese tech giant from mobile phone networks by 2027 gives operators BT and Vodafone time to adapt their kit. That said, the ban will still cost 2 billion pounds. It also makes Britain’s 5G communications even more dependent on rival suppliers Ericsson and Nokia.
India prize for U.S. tech grows with Chinese wall 14 Jul 2020 Google will invest $10 bln in India over five years or so. A chunk might follow Facebook into Mukesh Ambani’s Jio. The showy confidence in an iffy economy can help to ease regulatory headwinds. When new rules have crippled Chinese-capital dependent rivals, it is extra helpful.
Corona Capital: Lockdown diets, Beating the Fed 14 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Covid-19 is prompting diets for both animal and human; and the Fed takes a hit on a garbage deal.
SoftBank will struggle to find equal love of Arm 14 Jul 2020 The Japanese conglomerate paid $32 bln for the chip designer in 2016. Businesses have been hived off, while sales growth and operating profit have underwhelmed. As boss Masayoshi Son contemplates floating a piece of Arm, under pressure, it could be hard to avoid a markdown.
India’s banks peddle bad-loan black holes 14 Jul 2020 ICICI wants to raise some $2 bln, joining peers seeking capital as customers take advantage of interest holidays on a huge one-third of borrowings. Defaults system-wide could double to a whopping 20%, or worse. Amid so much disarray, the strong will inevitably get stronger.
U.S. buyer can take advantage of TikTok’s problems 13 Jul 2020 Donald Trump is considering a ban on the video-sharing app because of its Chinese roots. Selling to an American suitor, whether it’s Disney, Twitter or another firm, would normally trigger regulatory watchdogs. They may turn a blind eye, though, leaving an open door.
Corona Capital: Ice hockey 13 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The National Hockey League and its players make the kind of deal Major League Baseball sluggers and owners should have been pitching for.
Yum China can fill a pricier bucket in Hong Kong 13 Jul 2020 The $19 bln KFC operator is mulling a secondary float in the city. Its New York shares have been whipsawed by Sino-American tensions. An outsize base of U.S.-centric investors, a legacy of its spinoff, could be to blame. Heading East will fetch a more finger lickin’ valuation.
Takeda feeling uncomfortable Shire side effects 13 Jul 2020 The Japanese drugmaker is near a deal that would get it to a $10 bln divestiture target 18 months after buying its Irish rival for $62 bln. Promised cost savings are materialising and debt slowly shrinking. Weak stock performance under boss Christophe Weber suggests he overpaid.
Corona Capital: Mets star bidders, Robot slayers 10 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Power couple J. Lo and A-Rod are giving hedge fund manager Steve Cohen competition for the New York Mets baseball team; Covid-19 is accelerating automation of the meat industry.
Review: Poking China’s ironclad asset bubbles 10 Jul 2020 Sceptics have predicted the financial implosion of the People’s Republic for years. In “China: The Bubble that Never Pops”, Tom Orlik argues it may never happen. It’s a useful antidote to free-market complacency. Beijing’s competitive threat will not go away on its own.
China can turn the other cheek, for now 9 Jul 2020 The U.S. government slapped sanctions on Chinese officials for abuses of Muslim Uighurs, escalating tensions. Beijing may want to drop a trade deal in retaliation but patience is more useful. Xi Jinping will want threats in his back pocket following the November election.
Viewsroom: Chinese access to U.S. money, Boohoo 9 Jul 2020 Chinese companies’ access to American capital is imperiled for all sorts of reasons, says Hong Kong columnist Robyn Mak. The stingy LBO of New York-listed Sina by its CEO won’t help. Also, British fast-fashion retailer Boohoo’s not-quite dark satanic mills are in the spotlight.
Volatile markets make case for stock deals 9 Jul 2020 Buyers like Simon Property and Cineworld who have used cash to lunge after strategic targets are dropping their deals like a bad habit. Uncertain asset prices, liquidity crunches and pre-Covid valuations are all to blame. Transactions using stock have a better chance of closing.
Chancellor: Wall Street is firmly in Wonderland 9 Jul 2020 As society melts down, markets melt up. The constant manipulation of interest rates has turned the world of finance upside down. Serious investment has become impossible. It’s the sort of topsy-turvy state Lewis Carroll might have imagined if Alice was putting money to work.
Corona Capital: Nursing homes, Airlines, Walgreens 9 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Nursing home investments will get a rethink; airline travelers get the upper hand; and Walgreens’ LBO heyday is in the past.
Uniqlo is well-tailored for an Asia-led recovery 9 Jul 2020 Fast Retailing cut its annual operating profit forecast but the recovery is robust in its top two markets, China and Japan. It underpins a stock rally that has outpaced rivals Inditex and H&M, and justifies a premium valuation. It also dresses up a bumpy overseas expansion.
Ant will surf wave of Chinese cash into Hong Kong 9 Jul 2020 Jack Ma’s fintech outfit is eyeing a listing in the city valuing it at $200 bln, Reuters reports. As Beijing moves to crush political unrest, mainland money has flooded the exchange, juicing a rally despite U.S. sanction threats. That’s a relief for Ant and its Chinese peers.
Indonesia cautiously crosses central bank rubicon 9 Jul 2020 Bank Indonesia will buy $28 bln of bonds directly from the government, breaking a long-held taboo. It will refund interest gains, and the securities will be tradeable, providing price transparency. That’s about as credible as an emerging market monetary authority can hope to be.