India Insight: Mukesh Ambani goes after Jeff Bezos 16 Jul 2018 The energy billionaire built an upstart telecoms data network into the world’s biggest. Now Ambani wants to redefine how Indians shop, pitting him against Amazon and Walmart. India’s e-commerce market is young enough – and his pockets deep enough – for him to be a real threat.
Review: Why governments should give away money 13 Jul 2018 Handing out cash with no strings attached is an idea that has fired up a bizarre coalition of Silicon Valley techies and development economists. It may not be the silver bullet that some boosters claim. But as a new book argues, it deserves a serious hearing.
China’s flirtation with Europe is a tease 13 Jul 2018 Beijing is wooing continental leaders like Germany’s Angela Merkel, hoping for allies against Trump. Despite some common interests, Brussels is sceptical of China’s market opening gestures, plus it still needs U.S. security guarantees. Sweet free trade nothings won’t cut it.
Silk Road speed bumps show limit of yuan diplomacy 13 Jul 2018 There is trouble along Beijing's trillion-dollar trade route. From the Maldives to Malaysia, politicians are calling to review deals, fretting over debt and dependence. Domestic politics are driving the backlash, making it tough to turn economic might into lasting influence.
Sovereign investors sound market alarm 13 Jul 2018 Singapore's GIC has joined compatriot Temasek in striking a note of caution. It is reducing its exposure to developed markets and holding more cash: trade ructions, tighter rates and stretched valuations are giving it pause. That all points to lower returns ahead.
Viewsroom: Trump’s Supreme Court pick 12 Jul 2018 The U.S. president has chosen a friend of big business in Brett Kavanaugh. But he faces bigger questions from Senate democrats about executive power. Plus: Commodity giant Glencore faces mounting risks in Washington, and what’s behind the Chinese yuan’s downward slide.
SoftBank gets some help tinkering with valuation 12 Jul 2018 Masayoshi Son’s sprawling operation attracted an investment of over $1 bln from hedge fund Tiger Global. That should help SoftBank narrow its conglomerate discount, as might spinning off the Japanese mobile unit. The massive Vision Fund, though, is a murky hodgepodge unto itself.
Trade war rouses U.S. from tax-cut stupor 11 Jul 2018 U.S. levies on another $200 bln in Chinese goods are causing Republican lawmakers and companies to sound the alarm. They could have done so sooner – but were drunk on the president’s tax-cut plan. The timing will make it hard to stop what’s already gone too far.
Hadas: World Cup reveals competitive market secret 11 Jul 2018 The intense rivalry of the soccer championship is built on a cooperative foundation of shared rules and desires. Markets for products display similar superficial fights and deep common roots. Like sport, business competition also tends to become lopsided without careful controls.
Chinese sportswear may be hard turf to defend 11 Jul 2018 As Nike and Adidas duke it out at the World Cup in Russia, a bigger matchup looms. China’s market for sneakers and kit is growing quickly, and local rivals like $14 bln ANTA have had a good run. Younger and richer consumers, though, could start giving foreign brands an advantage.
Trade war corporate welfare queues will get long 11 Jul 2018 Team Trump is targeting another $200 bln of Chinese goods, from fish to chemicals, for 10 pct tariffs. Both countries are also trying to reassure businesses with talk of exemptions and subsidies. That just leads to more unhealthy and lasting government influence over industry.
China’s share slump spotlights super-regulator 11 Jul 2018 Exchanges rebounded briefly on reports Beijing might delay investment restrictions due to market ructions. A new regulatory structure put in place after a botched response to the 2015 crash hasn’t overreacted to this year’s 16 pct slump yet. But big problems haven’t been fixed.
“Back to the Future” trade war lacks Reagan vision 10 Jul 2018 Trump is using 1980s tactics to hit China with tariffs. The Gipper used similar levies to curb Japanese chips, computers and TVs. But Reagan also helped kick off global talks that created the WTO. Today’s White House wields only sticks, not carrots that might boost U.S. exports.
Premier Foods CEO heave looks like M&A appetiser 10 Jul 2018 Activist Oasis has upped its stake in the maker of OXO cubes to oust boss Gavin Darby. Its plan to sell Batchelors soup could cut borrowing and loosen top investor Nissin’s grip, making the rest a takeover target. It’s a more appealing prospect than low growth and high debt.
CATL’s overseas charge has lasting power 10 Jul 2018 The Chinese battery champion will build its first factory abroad in Germany after scoring a $5 bln supply deal with BMW. It establishes a base in a promising market for electric vehicles. The newly listed company is cementing its lead over compatriot Warren Buffett-backed BYD.
SoftBank gets a shrewd deal as Altaba’s middleman 10 Jul 2018 The Japanese conglomerate is acting as go-between for Yahoo Japan in a $2 bln stock buyback from the U.S. investment firm. SoftBank's domestic telecoms arm gets a stake at a cheap price, and closer ties with Yahoo Japan. That will help it gear up to go public.
Tesla can beat Ford out of China trade pits 9 Jul 2018 Absorbing new tariffs on U.S. cars would probably have killed any chance of CEO Elon Musk hitting his goal of a profitable second half. Ford can soak them up. Strategically, the balance is different: Ford needs new ideas, while Tesla just has to get on with building a factory.
India’s Cairn Energy fire sale is short-sighted 9 Jul 2018 Tax authorities have sold part of a stake in Vedanta Limited seized from the UK company in a $1.3 bln tax dispute, weeks before the pair go to arbitration. India only pockets $216 mln, half what the shares were worth at the start of the year. The timing and the logic look flawed.
Xiaomi IPO will punish bankers twice 9 Jul 2018 The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.
China’s offshore debt crackdown adds outflow risk 9 Jul 2018 Officials are curbing dollar bond issuance as the yuan weakens. Regulation of the $775 bln market has always been haphazard. This move looks reactive and clumsy. It will put more downward pressure on a faltering currency, and could inadvertently encourage capital leakage.