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.
Anime hero toys with Japan’s robotic governance 22 Nov 2019 Bandai Namco, the $14 bln creator of Pac-Man, wants to buy the rest of Sotsu, the company behind the iconic Gundam empire. A Chicago-based investor has flown in to fight a flawed deal unfair to minority shareholders. It may, however, take regulators to save the day.
Meituan Dianping profit recipe lacks secret sauce 22 Nov 2019 China’s $68 bln food-delivery company had its second consecutive quarter in the black. Good weather and restaurant ad revenue helped. As global rivals have found, though, the ingredients for sustainable profit are elusive. It’s not clear yet Meituan has sourced them either.
Australia’s misbehaving banks run out of excuses 22 Nov 2019 Amid a $1.7 bln capital call, Westpac has been thwacked by a regulator for 23 mln money-laundering violations. Boss Brian Hartzer will find it hard to stay. The country’s lenders already have been shamed, fined and punished in other ways. It’s unclear how to set them straight.
China’s Pinduoduo digs in for a long Alibaba fight 21 Nov 2019 Investors wiped $11 bln off the e-commerce challenger’s market value after it posted a worse-than-expected quarterly loss. The rising cost of wooing consumers is to blame, as Pinduoduo battles its largest rival for big-city shoppers. Profitability just got a little more distant.
Alibaba’s bankers get more buck for their bang 21 Nov 2019 They are being paid the same $30 mln as the printers, but also sold $11 bln of shares that practically sold themselves. Uber’s advisers took a bigger 1.3% cut for a tougher $8 bln deal. For the amount of work involved, Saudi Aramco’s team is reaping the lowest return on effort.
India’s shadow bank fix shows much-needed audacity 21 Nov 2019 The regulator is taking control of a credit crisis, sending housing lender DHFL and $12 bln of liabilities to bankruptcy court. Unpicking a financial institution’s woes with a process designed for regular corporates is bold. It might also be the only way to break an impasse.
Viewsroom: Rising Hong Kong tensions 21 Nov 2019 After more than five months of unrest in the city, a prolonged violent siege on a university campus ratcheted things up anew. Blocked roads and trains shuttered schools as tear gas wafted through the central business district. Its status as a financial hub may be under threat.
Cairn obstructs Delhi’s $100 bln energy target 20 Nov 2019 India’s oil minister says there is no better place to invest, as he courts foreign firms and a lofty investment goal. A long-running tax fight between the government and Cairn, however, undermines the promise of predictable policies. The sooner the case is resolved, the better.
The Exchange: Carbon-free superpower 20 Nov 2019 Bushfires and a historic drought have put climate change front and centre for Australia, increasing pressure on a pro-coal government to act. Ross Garnaut, economist and former Canberra adviser, explains why there's an opportunity Down Under that may outweigh the cost of change.
Hadas: Hong Kong tips Beijing’s balance quandary 20 Nov 2019 The territory’s economy is already hurting as residents battle the forces of oppression. The damage could multiply, if Xi Jinping were to follow the kind of tough strategy he’s using in Xinjiang. It is the autocratic dilemma: discontent rises with the costs of squelching it.