U.S. oil producers lose grip on global crown 14 Sep 2018 Fields in Texas were meant to help make the country a bigger exporter of black gold than Saudi next year. But pipeline construction is delayed longer just as American inventories are falling. U.S. drillers risk losing control of the market the longer logistics problems linger.
Chancellor: The carry trade that followed Lehman 14 Sep 2018 The subprime crisis was born from yield-chasing in the Greenspan easy-money era. Even lower interest rates since the Lehman bust revived the global carry trade. Another maelstrom will be hard to avoid.
Nio zooms from carmaker to tech star 14 Sep 2018 China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.
Southeast Asia’s politics cloud digital ambitions 14 Sep 2018 The Davos crowd descended on Hanoi this week and talked up ties that could make the 660-mln-person region the next China. Recent moves suggest tech barriers are rising, though. Europe's approach to data would be a better path to cut costs and risks while growing local champions.
China investors coming to terms with changed world 14 Sep 2018 The tone at this year’s CLSA powwow in Hong Kong was notably reserved as attendees wrestled with trade tensions, a cooling economy and the 20 pct fall in Shanghai stocks. General pessimism seems overdone, but the Asia-focused financial community senses a new normal taking hold.
Meituan Dianping feeds into Chinese tech fears 13 Sep 2018 The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.
Biotech starts Phase II Hong Kong market trial 13 Sep 2018 Diabetes drug developer Hua priced its shares at the bottom of the range, and halved the deal size. After peer Ascletis debuted last month to kick off an expected wave of IPOs from the sector, its value fell 50 pct. The success rate for this big experiment may be low for a while.
Chinese investment bank IPO flaunts tech conflicts 13 Sep 2018 Alibaba-affiliated Ant Financial has been lined up as a cornerstone investor in China Renaissance. Fan Bao’s boutique built its business advising JD and is among the last with loyalties to Jack Ma’s other big rival, Tencent. The knotty relationships potentially spell trouble.
Beijing’s confused tax message will strain growth 12 Sep 2018 A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.
Hadas: Japan can revel in fall from market glory 12 Sep 2018 The country was the king of stocks in 1989, with 32 of the world’s 50 largest listed companies. It hasn't fully recovered since the crash; only Toyota is left today. Japanese incomes, though, are growing as fast as in any developed economy. For that, market caps hardly matter.
Chinese $5 bln winter sports bid is hard to beat 11 Sep 2018 Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.
Japan’s Renesas speeds into autonomous M&A wreck 11 Sep 2018 The Tokyo-based chipmaker is buying U.S. peer Integrated Device Technology for $6.7 bln. A promised uplift in revenue from selling self-driving and connected-car technology sounds optimistic. Even if Renesas can achieve such synergies, the return on investment barely stacks up.
Didi falls way behind Uber on road to IPO 11 Sep 2018 Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.
Chinese Tesla’s $1.3 bln IPO revs up too fast 11 Sep 2018 Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.
Volvo’s IPO problems go beyond brewing trade war 10 Sep 2018 The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.
Jack Ma’s exit plan just raises more questions 10 Sep 2018 Alibaba says CEO Daniel Zhang will succeed the $420 bln group's co-founder as chairman in 2019. Planning ahead is laudable, but the sketchy blueprint, after a baffling interview, leaves worries over the top job and Ma's influence unanswered. It's one step forward, two steps back.
For Abe’s next trick, a diplomatic balancing act 10 Sep 2018 The veteran leader is on track to become Japan’s longest-serving prime minister. After almost six years of Abenomics, his signature policy is gaining traction. But with Tokyo caught in trade war crossfire, Shinzo Abe’s manoeuvring in Beijing and Washington will matter more.
Jack Ma’s next moves will instruct China tech 8 Sep 2018 The charismatic co-founder of Alibaba says he plans to retire. It’s a sign of the $420 bln company’s maturity that others are ready to step up, unlike at rivals like scandal-hit JD. But he will still wield huge influence. Investors will want clarity on who really holds the reins.
Elliott’s new Hyundai push will be hard to ignore 7 Sep 2018 The U.S. hedge fund has called out a lack of progress in the South Korean conglomerate's overhaul. That looks justified: it has yet to come back after investors nixed a $9 bln plan in May. As regulators step up pressure to reform, Hyundai may not be able to stall much longer.
Foreign carmakers are caught in a China drive-by 7 Sep 2018 Beijing wants to slash excess auto production at a time when Nissan, Toyota and others hope to expand. Draft rules could cut as much as a third of capacity in the world’s largest car market. Official feuding over the issue too could prove a speed bump, even for global giants.