Huge biotech M&A premiums narrow perception gap 3 Dec 2019 Astellas’ $3 bln deal for Audentes is the fifth 100%-plus premium in the sector this year. Market pessimism is making targets cheap, notably in speculative areas like gene therapy. But buyers are having to pay up to convince sellers they’re not surrendering at fire-sale prices.
ThaiBev is tempting Budweiser with a Saigon brew 3 Dec 2019 Tycoon Charoen Sirivadhanabhakdi may spin beer assets out of his Singapore-listed group, including an attractive Vietnamese pint. An IPO, at a mooted $10 bln valuation, could unlock value. The real prize will be a synergy-creating deal with AB InBev's newly hived off Asian arm.
Online loans party leaves Seoul set for a hangover 3 Dec 2019 Peer-to-peer lending is flourishing in South Korea, despite trouble elsewhere. That’s thanks to government support and dysfunctional banks. But with the economy slowing and households already carrying $1.3 trln of debt, there is credit pain ahead. Web upstarts will feel it first.
Nomura takes the easiest road with new CEO 2 Dec 2019 Koji Nagai performed poorly as boss and will now become chairman, a shareholder-unfriendly tradition in corporate Japan. Successor Kentaro Okuda’s time running the Americas unit supports the bank’s global goals. But a veteran pick is unlikely to bring fast fixes to bigger issues.
Aussie rate setters on a slow road to asset buying 2 Dec 2019 Consumption is weak and joblessness is rising. The central bank has room to cut rates from a record low of 0.75%, and can resort to bond purchases after that. But Governor Philip Lowe wants fiscal policy to do more. He can ramp up pressure on the government by taking his time.
Review: India can reimagine tech and jobs, again 29 Nov 2019 Tata shook up the way people and technology work. Now artificial intelligence can help create employment, the Indian group’s Chairman Natarajan Chandrasekaran argues in “Bridgital Nation”. It’s a refreshingly contrarian view on the problem, even if many questions go unanswered.
Credit card IPO shows good side of Indian banks 28 Nov 2019 A $1.3 bln float will let SBI Cards join the country’s most highly valued financial institutions and give buyout firm Carlyle a partial exit. Despite raging financial fires, the State Bank of India unit’s 36% return on equity demonstrates the power of well-run state companies.
U.S.-China fault line runs right through Hong Kong 28 Nov 2019 President Donald Trump grudgingly signed a law effectively backing the city’s anti-government protesters. He tried to soften the blow for Chinese counterpart Xi Jinping. Bipartisan U.S. support, though, shows antagonism will outlast precarious trade talks – or a change of leader.
Hardware glitch exposes Xiaomi’s missing software 28 Nov 2019 Handset sales at the Chinese group slumped 8% from a year earlier, to $5 bln, due to shrinking demand at home. Growth in internet services has also stalled. Absent a turnaround led by 5G devices, investors deserve a clearer idea of where Xiaomi's "new species" model is headed.
Man City adds scrappy player to financial roster 27 Nov 2019 Silver Lake is buying about 10% of the Premier League club's owner, valuing the global soccer conglomerate at an eye-popping $4.8 bln. Victory on the pitch won’t be enough to satisfy the buyout shop’s investment goals. That may take winning in streaming, e-sports and even China.
Alibaba listing opens new front in Tencent rivalry 27 Nov 2019 Hong Kong investors can own both Chinese tech giants after the e-commerce firm’s $11 bln local offering. If regulators permit, the pair will soon be fighting over mainland shareholders, as well as digital payments and cloud computing. Tencent’s scarcity value has been downgraded.
Hadas: GDP is a measure ready for retirement 27 Nov 2019 The fuss over China’s revised growth statistics points to peak uselessness of the 85-year old Gross Domestic Product. Too many countries mess with a number which gives slow, blurry readings of the economic pulse, especially for megacities. The future is “now-casting”, and more.
Canada’s Aussie gas station bid needs more fuel 26 Nov 2019 Quebec-based Couche-Tard has offered $7.3 bln including debt for Caltex to expand its filling station empire Down Under. At more than 9 times EBITDA the price looks good, while rival bidders are scarce. A mooted real estate IPO is Caltex’s best hope to squeeze out more value.
Banks Down Under have further depths to plumb 26 Nov 2019 Westpac is parting ways with both its chairman and CEO, days after a money-laundering scandal erupted. The $58 bln Aussie lender becomes the latest of the Big Four to replace its top brass. Persistent rot suggests investors may be underestimating the cost of the cleanup.
Japan is surprise bright spot for India’s Paytm 26 Nov 2019 The $16 bln payments giant is thriving in a similarly cash-addicted nation. Flush with cash raised from Ant Financial and others, it could get an extra Tokyo boost as SoftBank leads a rejig with local app Line. Like its startup peers, Paytm may find foreign shores lucrative.
The Exchange: Kill your terminal 26 Nov 2019 Traders resent expensive tools like Bloomberg and Eikon, but they need them to chat. Goldman-backed Symphony, at $20 a month, wants to break in. CEO David Gurle talks about the challenges of compliance, his deal with China’s Tencent, and the future of finance software.
Shell’s Eneco fail flags Big Oil’s tricky pivot 25 Nov 2019 The oil group lost out to Mitsubishi’s 4.1 bln euro bid for the Dutch utility. Paying up for small European players is easy for Japanese bidders with a low cost of capital. Less so for old crude producers trying to shift to low-carbon energy, while saddled with wary shareholders.
Japan’s sour Aussie milk goes down better in China 25 Nov 2019 Mengniu is gobbling up its second Australian acquisition in two months. Seller Kirin hasn’t had much luck with loss-making Lion Dairy. But the $15 bln buyer can easily afford the $407 mln snack. Unlike the previous owner, Down Under deals should appeal to its thirsty home market.
Hong Kong voters offer glimmer for recovery 25 Nov 2019 Record 71% turnout in local elections handed pro-democracy groups a big victory. It puts pressure on Chief Executive Carrie Lam to make some concessions. Even after six months of bumbling, she has a chance to take steps that could help keep the calm and reverse an economic slump.
AIA buys itself a little extra China cover 25 Nov 2019 The $120 bln insurer hired Lee Yuan Siong from Ping An to be CEO. Weathering strife in Hong Kong, its biggest market, is the most immediate challenge. His tech savvy and mainland political ties, nurtured during his time at the Chinese titan, will be valuable both now and later.