China’s new tech bourse too much of a good thing 22 Jul 2019 Shares of all 25 firms on China’s answer to the NASDAQ at least doubled on their debut. Dig beneath the speculative mania, though, and there is a lot to like about the new board. Letting more companies list, and sticking to reforms, may be the best way to tame the price swings.
Asahi Aussie deal passes all but one sobriety test 22 Jul 2019 The Japanese brewer is buying AB InBev’s Australian unit for $11 bln. It’s a highly profitable business that ticks lots of boxes for Asahi, but justifying the price requires clever cost savings. Asahi will have to take a more proactive approach than usual to make the deal work.
Abe’s so-so victory is good for Japan’s economy 22 Jul 2019 Shinzo Abe’s coalition won upper house elections, but a slack turnout denied him the majority needed to amend the pacifist constitution. As other central banks prepare to cut rates, presenting Japan with a fresh currency challenges, that clears away an unhelpful distraction.
India unlocks a $200 bln stressed debt market 22 Jul 2019 The country’s first comprehensive bankruptcy code has hit bumps with cases like the drawn-out takeover of Essar Steel. But the framework is starting to offer better recovery, prompting creditors to act sooner. That’s good news for lenders and investors like Apollo and Oaktree.
AB InBev’s deal machine goes into smart reverse 19 Jul 2019 The brewer’s sale of its Aussie unit to Asahi for $11 bln will cut debt. The Japanese are paying a valuation less than AB InBev wanted from its botched Asia IPO but probably more than investors ascribed to the unit. It keeps the door open for boss Carlos Brito to try again.
RBS turnaround boss can repeat trick Down Under 19 Jul 2019 Ross McEwan has been named CEO of National Australia Bank, the lender worst hit by a bruising inquiry into misconduct. He's a welcome arrival at a low point. But he'll need to draw on his Edinburgh nous to rebuild trust and overhaul the group, as the economy cools.
Yes Bank’s cash call will be high-wire act 19 Jul 2019 The Indian lender’s bad debt spiked in the June quarter and it needs more than $1 bln in fresh capital, over a third of its market value. To avoid a more radical rescue, boss Ravneet Gill must convince private equity investors that a recovery in a handful of accounts will spread.
Hong Kong demonstrators risk muddling the message 19 Jul 2019 As the city's tycoons will attest, scale comes at a cost. Protests first focused on extraditions to the mainland, but as the leaderless movement has grown, so too have flare-ups around issues like border traders. That is hitting business; it may also squander a chance for change.
Viewsroom: AB InBev’s stubborn financial beer gut 18 Jul 2019 The $150 bln brewer of suds like Budweiser and Stella has scrapped its Asia unit’s Hong Kong float. CEO Carlos Brito now needs new ways to reduce the company’s debt. And as the second pulled IPO in weeks amid civil unrest, it puts the city’s financial hub under a spotlight.
Lufax sounds Beijing death knell for peer lenders 18 Jul 2019 China’s top peer-to-peer lender plans to exit the sector, the most telling sign yet that a regulatory crackdown could kill the industry. The Ping An unit and one-time IPO candidate can fall back on money management and other forms of lending. Rivals may be less lucky.
iPhones keep ringing for Taiwan’s TSMC 18 Jul 2019 Quarterly earnings at the $213 bln contract chipmaker fell to $2 bln, capping a dismal first half. New models from Apple should mean a better end to 2019, though. TSMC's growing heft in the market for cutting-edge semiconductors suggests smartphones can power a stable recovery.
Seoul rate-setters bat for trade accord with Tokyo 18 Jul 2019 A surprise cut to borrowing costs underscores growth concerns as South Korea faces export curbs from its neighbour. The central bank has little more space to ease. That puts the onus on President Moon Jae-in to pass a stimulus package and to de-escalate regional tension.
Stalling Didi scrabbles to rev its China engine 18 Jul 2019 The ride-hailing app may try to raise a fresh $2 bln from investors. Even with a dominant share of its home market, loss-making Didi is struggling with regulatory demands and a plethora of small rivals. Lacklustre debuts from rivals Uber and Lyft may put off new backers too.
Fresh attack on China’s zombies can bury some 18 Jul 2019 Beijing officials are on a campaign to kill off moribund companies. Past versions of this familiar horror flick have ended with local authorities keeping state-owned groups staggering along anyway. But a healthier economy and big ambitions make this sequel worth watching.
Hadas: Peaceful trade theory ominously unravels 17 Jul 2019 From 18th century enthusiasm for “doux commerce” to the WTO, optimists have considered trade a good antidote to combat. From the Opium Wars to Trump’s tariffs, reality has been much more conflictual. The latest round of globalisation isn’t quite dead, but is badly wounded.
SoftBank’s robotics IPO faces a reality check 17 Jul 2019 China’s CloudMinds, 35% owned by Masayoshi Son’s Vision Fund, is seeking $500 mln in a U.S. float. The loss-making robot startup reckons AI-powered androids are tomorrow’s cleaners. It’s a tough sell in the real world, where most Chinese tech floats this year are now underwater.
Auto pessimism could be over-revved in China 17 Jul 2019 A grim start to the year saw sales slump by more than 10%. Chaos reigned amidst new rules, while Beijing remained reluctant to offer stimulus. But policy pressure is uneven, and the worst could be past: luxury brands and electric-car makers might be the first to pep up.
China’s Topsports takes eye off e-commerce ball 17 Jul 2019 Two years after a $6.8 bln buyout of Belle, the shoe retailer has unveiled IPO plans for its athletic-wear chain. A Beijing-backed fitness push should help sustain sales growth. A dependence on Nike and Adidas is a worry, though, as is the lack of emphasis on its online strategy.
Miner exits shift coal spotlight to Anglo American 16 Jul 2019 BHP is the latest heavyweight to consider a sale of thermal coal assets. That's sensible given weak prices, pressure from investors and a business that is barely material. Anglo's bigger exposure means a tougher choice - with few buyers, there’s a case for staying the course.
Alibaba stock should have local staying power 16 Jul 2019 The New York-listed Chinese e-commerce titan may raise up to $20 bln in Hong Kong. Investors should be able to trade the shares between exchanges. So-called two-way fungibility has cost the Asian market liquidity in the past, but Alibaba’s regional appeal could be an exception.