U.S. veto on China Mobile could grow wider 3 Jul 2018 The Trump administration wants to deny the $180 bln carrier’s longstanding bid to offer overseas calls from America. The financial impact will be negligible. But this could herald a broader U.S. campaign to weaken Beijing’s control over Chinese people and companies abroad.
Deutsche reboot looks incompatible with China tech 3 Jul 2018 New boss Christian Sewing is scaling back in capital-intensive businesses like bond trading and serving hedge funds. That creates a challenge: how to hold onto rainmakers in less problematic areas, like a revamped Asia tech team which is winning deals with Ant and Tencent.
Chinese mega-fund is the last thing tech needs 3 Jul 2018 A state-owned enterprise is working with one of SoftBank’s partners on a $15 bln answer to the Vision Fund. Deploying huge sums wisely is hard, even if you have SoftBank’s track record. This could further inflate valuations, and stoke fresh subsidy battles among startups.
Bank CoCos get a new reason to go pop 2 Jul 2018 Exchange-traded funds are pooling bonds that convert into equity in a crisis. It’s an odd mix: ETFs allow investors to buy or sell assets easily, while contingent convertibles can be hard to trade. The union may mean more investors for funky debt, but also bigger price moves.
Vedanta digs just deep enough to leave London 2 Jul 2018 Chairman Anil Agarwal’s offer of a 28 pct premium for the mining group’s 2.3 bln pound UK unit is probably enough for investors spooked by deadly protests. They can invest directly in the Indian operations anyway. And a simpler structure paves the way for more dealmaking.
Steel pact lets Thyssen/Tata tackle wider problems 2 Jul 2018 Tweaking the terms of their September joint venture gives the German steelmaker a bigger share of a future IPO. It could have driven a harder bargain, but Tata had limited wiggle room. Besides, ThyssenKrupp needed a deal to kickstart its own much-needed overhaul.
Guest view: Finance can do better on development 29 Jun 2018 Big banks should be helping emerging countries meet the Sustainable Development Goals, a challenge that could open new markets worth $12 trln. Yet well-intentioned rules meant to keep the financial sector safe can get in the way, argues Christopher Lee of the Milken Institute.
World Cup Soccernomics 29 Jun 2018 A Breakingviews calculator predicted 14 of the 16 teams that made the soccer tournament’s knockout stage. But the analysis of player values, home support and participation did not foresee defending champion Germany’s early exit. The data now points to Brazil lifting the trophy.
Winner’s curse defeats numbers game at World Cup 29 Jun 2018 A Breakingviews calculator predicted 14 of the 16 teams that made the soccer tournament’s knockout stage. But the analysis of player values, home support and participation did not foresee defending champion Germany’s early exit. The data now points to Brazil lifting the trophy.
Xiaomi humble IPO pie still good enough to eat 29 Jun 2018 The Chinese smartphone maker priced its Hong Kong float at the bottom end of a marketed range, valuing it at $54 bln. This isn’t a failure, and investors who believe in the company will like the discount. Missteps by executives and bankers offer lessons for those next in line.
Australia’s ban on Huawei would be a costly call 29 Jun 2018 Having passed a law on foreign meddling in its politics, Canberra now looks set to block the Chinese telecom giant from working on its next-generation mobile network. There are valid concerns. But a ban carries costs: pricier 5G, and worsening ties with its best export customer.
China’s renewable giants can live without handouts 29 Jun 2018 Authorities are pulling state subsidies for solar and wind companies. The shake-out recalls earlier crises, which claimed stars like Suntech. Now, however, cheaper technology and better supporting infrastructure give clean energy champions a chance to thrive on their own.
Viewsroom: Trump goes hog wild on trade 28 Jun 2018 The U.S. president rejected hard-liners’ calls to ban China investing in sensitive U.S. tech. Yet he’s pushing for tariffs that could cost carmakers $45 bln and is livid Harley-Davidson will no longer make EU-bound bikes in the States. Plus: tapping China’s shale reserves.
Premier Foods’ Japanese flavour has turned stale 28 Jun 2018 Top shareholder Nissin’s stake in the Mr Kipling maker has fared poorly, but a beneficial commercial deal ensures its support. With activist Oasis pushing for CEO Gavin Darby’s ouster, it’s time for the Tokyo-based company to start thinking like an investor.
Baidu’s $1 bln buyback is too little or too much 28 Jun 2018 The $85 bln Chinese web giant has failed to impress with its repurchase plan. The amount wasn't big enough to excite investors and in any event, the search engine operator is supposed to be focused on turning into an AI champion. It has better things to do with the cash.
Chinese used-car sale fails timing test 28 Jun 2018 Online marketplace Uxin has halved the size of its U.S. float. A hefty lending business may be to blame, but its worst offense is probably picking a moment when regulatory uncertainty is already battering Chinese tech stocks. Rivals waiting in the IPO queue should take note.
India’s banking zombies pose a problem 28 Jun 2018 Of 21 state lenders, half face growth restrictions and half will soon be without a CEO. Letting these entities run into the ground could be privatisation by stealth. Given $150 billion of bad debts in the system, real sell-offs would be less embarrassing and more efficient.
Softer U.S. China plan is no comfort for investors 27 Jun 2018 President Donald Trump rationally chose to use national-security deal reviews to restrict Chinese investment. It’s a win for his Treasury secretary over trade hardliners. But the review body is opaque, mixed messages have confused markets, and Trump still wants auto tariffs.
China’s homegrown shale is worth the bother 27 Jun 2018 The People’s Republic produced a fraction of U.S. shale gas output in 2017. Terrain issues, deep wells and limited data explain why, yet better domestic technology and state support are pushing production up. With trade tensions rising, Beijing's costly hedge looks sensible.
Simplicity fixes only some bank woes Down Under 27 Jun 2018 A back-to-core banking push by Australia’s top lenders aims to address both public anger over poor advice and unimpressive wealth management returns. CBA is the latest to outline spinoff plans. Such splits may deflect regulatory heat. It is less clear how they help with growth.