Vedanta’s tin ear is a problem for shareholders 30 May 2018 After deadly protests forced the closure of a plant, Chairman Anil Agarwal is blaming a foreign conspiracy. That is no way to reassure rattled investors in the Indian miner, especially given Vedanta’s controversial history. At least a new incoming CEO can set a better tone.
Indonesia’s pre-emptive strike sends right signal 30 May 2018 Southeast Asia's largest economy has raised rates for the second time in two weeks. It sends a clear message that the new central bank governor Perry Warjiyo will put a steady currency first. Much of the 25-basis-point hike has been priced in, but timing and tone should reassure.
Best to kick the tires on Chinese used-auto apps 30 May 2018 Investors from Tencent to TPG are filling the tanks of second-hand car startups. There may be lemons on the lot; sites linking individual buyers and sellers could stall. Those brokering for dealers and providing loans – such as Uxin, which just filed for an IPO – deserve a spin.
Alibaba’s delivery route missing a few turns 30 May 2018 The e-commerce titan is leading a $1.4 bln investment into China's top courier service, ZTO. It's the latest in Alibaba's scattershot approach to logistics. Keeping up with rival JD may be the real motive, but it isn’t clear how the pieces fit together into a cohesive strategy.
Trump moves on China give investors whiplash 29 May 2018 Congress hopes to stop the U.S. president from rolling back penalties on telecoms manufacturer ZTE. The White House also wants tariffs on $50 bln in Chinese imports. It would be unwise to tune out Trump’s good-cop-bad-cop tactics, as lawmakers can only do so much to rein him in.
China is winner in German-Bosnian governance fight 29 May 2018 Manufacturer Ningbo Jifeng may offer to buy out other shareholders of Bavarian auto supplier Grammer. The Chinese group is offering a tiny premium and should make a healthy return. But a lowball exit may appeal to investors weary of a boardroom spat with Bosnia’s Hastor family.
World Cup Soccernomics 29 May 2018 Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.
Numbers add up to Germany retaining World Cup 29 May 2018 Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.
Oil rally puts New Delhi in a bind 29 May 2018 As a major energy importer, India is in a tight spot. Taxes introduced when crude was cheap are now squeezing consumers. The government can’t reverse course without creating a budget hole – unless it makes up the shortfall by taxing ONGC and other producers instead.
China’s flabby stock market set for a workout 29 May 2018 MSCI index inclusion will inject a few billion dollars into mainland shares from June. While some money will simply track the benchmark, active investors will arrive too. That should mean that prices more closely reflect fundamentals, and bosses feel more pressure to shape up.
China would be wise to limit cornerstone investors 28 May 2018 Tech stars such as Alibaba could pre-sell shares to underpin listings at home, and Foxconn just did something similar for a Shanghai IPO. The practice may prevent wild stock swings, but also distorts markets. Relying too much on such backers, as Hong Kong did, would be a mistake.
Macau will struggle to kick its gambling addiction 28 May 2018 The Chinese region wants to be more like Las Vegas, and focus on varied nightlife and family fare. One official says resorts could generate 40 pct of revenue beyond the casinos. It's a worthwhile target for Galaxy and peers, but Macau's infrastructure is one of many hurdles.
Apple would make a good backer for Foxconn IPO 25 May 2018 The Taiwanese contract manufacturer wants strategic investors to anchor a $43 bln Shanghai listing. Apple could strengthen its relationship with the iPhone assembler and help its robot initiatives. Beijing might also appreciate the endorsement of its push to attract tech stocks.
Red-faced Wesfarmers walks away from UK botch job 25 May 2018 The Australian DIY giant has offloaded its Homebase subsidiary to management. It racked up losses of almost a billion pounds in two years of disastrous tinkering with the previously profitable business. At least the company has now accepted it doesn’t understand the market.
Startups bump up against myth of Southeast Asia 25 May 2018 Indonesia’s Go-Jek is moving into four nearby markets. For this, the $5 bln ride-hailing firm will spend heavily on separate brands and apps. The problem for it, Alibaba and others is that this region of 660 mln remains more of a political concept than an economic reality.
U.S.-China spat poses serious hazard for WTO 25 May 2018 The two countries are sparring at the Geneva-based organisation about how the WTO should handle Beijing’s brand of state capitalism. A U.S. threat to veto the appointment of judges could paralyse the trading body’s dispute resolution mechanism – and hold the outfit to ransom.
Viewsroom: America sees red on China trade deal 24 May 2018 Getting Beijing to force companies to buy more U.S. soybeans and oil may help the Trump administration claim a numbers victory. But it reinforces China’s statist instincts while ignoring most U.S. business beefs with Sino-American trade. Plus: has Tencent hit a peak?
Autos investors too quick to call Trump’s bluff 24 May 2018 German carmakers export a ton of vehicles, yet their stocks fell just 3 pct after the U.S. president threatened import tariffs. It implies they think Washington is just posturing, or that BMW and the like can mitigate the impact. That may prove to be overly optimistic.
Samsonite short case piles up Hong Kong’s baggage 24 May 2018 An experienced stock sceptic has laid into the $6 bln luggage-maker’s governance and accounting. It’s a bigger and better-known company than the Chinese minnows typically targeted. For a market relaxing standards to broaden its appeal, Samsonite gives investors more to unpack.
EMI deal calls out to 1MDB bounty hunters 24 May 2018 Sony is taking control of EMI Music Publishing. The sale could mean a $420 mln payout to financier Jho Low. U.S. prosecutors allege he used funds stolen from Malaysian fund 1MDB to make the purchase. That’s a temptingly huge sum for authorities in both countries to pursue.