Portuguese power bid tests EU’s open door to China 11 May 2018 China Three Gorges is set to bid for the 77 pct of EDP it doesn’t own. The group has been an investor since 2011, but success would place the 11 bln euro utility under Chinese state control. That will add a spark to European Commission plans to better screen foreign investment.
The Exchange: Indonesia’s startup boom 11 May 2018 Southeast Asia's largest economy has seen a flurry of homegrown tech successes, led by $5 billion ride-hailing firm Go-Jek. Willson Cuaca of East Ventures and Donald Wihardja of Convergence Ventures explain why, and how, Jakarta can keep the hits coming.
Review: Get used to your bullsh*t job 11 May 2018 Two in five people find their employment meaningless. A new book by David Graeber finds plenty of culprits for the proliferation of “bullshit jobs”, from Puritans and machines to the liberal elites and the financial sector. Graeber’s taxonomy is inspired; his solution less so.
Volvo IPO will open road for M&A 11 May 2018 The Swedish group’s Chinese owner Geely may list the business it bought in 2010, profiting from a turnaround. That would raise cash for research and development and facilitate dealmaking. But a mooted valuation of up to $30 billion hinges on unrealistic Tesla-style multiples.
Hardy Indian hospital auction takes sickly turn 11 May 2018 A divided Fortis board chose selling a minority stake to two investors with little experience running hospitals over four other offers, including a $1.3 bln takeover. Half the directors may be gone before shareholders vote. The disarray leaves room for a hostile bid.
Malaysia can push for a healthy China rebalance 11 May 2018 Mahathir Mohamad has accused his predecessor of selling out to Beijing, and vows to review deals. The country's strategic position and historic ties with the People's Republic gives him leverage to reset the relationship. But Malaysia needs China too, so the haggle will stay polite.
Videogame-watching IPO magnifies clash of clans 11 May 2018 Huya is set to list at a $2.6 bln valuation, or nearly eight times revenue. The startup gives investors a shot at a market whose audiences for "League of Legends" and other games exceed the NBA's. Backer Tencent's stake in Chinese e-sports rival Douyu also offers a useful hedge.
Malaysian political shock may hold sting for banks 10 May 2018 Wall Street fingerprints were all over the $4.5 bln 1MDB sovereign fund scandal. Malaysia’s new government, and others overseas, could reopen or step up enquiries – and come after lenders that raised and moved money. That poses renewed risk for Goldman and Deutsche Bank.
1MDB poses fresh threat to Najib – and Malaysia 10 May 2018 With a shock election defeat, the outgoing prime minister's top defence against the $4.5 bln fund scandal has gone. Old enquiries may reopen at home and overseas agencies have less reason to go easy on him. Najib could be tempted into the dangerous politics of mutual destruction.
Open-and-shut verdict leaves Anbang case unsolved 10 May 2018 Three months after authorities seized the insurer, a Chinese court has sentenced ex-Chairman Wu Xiaohui to 18 years in prison for fraud. The one-day trial provided only a glimpse into the opaque conglomerate. Swift justice means Anbang's rise and fall remains mostly a mystery.
China tech boom upgrades Hong Kong trading desks 10 May 2018 The exchange says $19 bln in securities changed hands daily last quarter, double last year’s figure. That's still dwarfed by New York. But a wave of mega-listings, led by $80 bln handset maker Xiaomi, will drive more activity, as will an increasingly active derivatives market.
Markets want soothing after Malaysia poll upset 10 May 2018 Mahathir Mohamad has won a bitterly contested election. The shock victory will rattle investors, who will fret about the country's economic growth momentum and future ties with China. For now, a quickly formed government and clear economic agenda can limit market turbulence.
Walmart wages dangerously big online war in India 9 May 2018 Even as an e-commerce push at home stumbles, the mega-retailer is plowing $16 bln into Flipkart. It pits Walmart against Amazon in a huge unprofitable market, and also challenges Alibaba, which backs Paytm Mall. After missteps in China, this will be a make-or-break overseas deal.
Hadas: Technology is still working pretty well 9 May 2018 The global economy has lots of problems, but a slowing pace of innovation is not one of them. The numbers lie, as arbitrary adjustments to real GDP distort reality. Life-changing new developments keep coming as fast as ever, even though so much has already been accomplished.
SoftBank has tech gap to close with investors 9 May 2018 Analysts seem more convinced than shareholders by the $85 bln outfit’s transformation into a technology investment house. That could change if SoftBank can pull off a U.S. merger and a domestic listing in telecoms, and generate some clear successes among its futuristic bets.
Tokyo jobs giant makes pricey hire with Glassdoor 9 May 2018 Japan’s Recruit has bought the U.S. job-reviews site for $1.2 bln, or about seven times trailing sales. That is a big sum for a startup that is still unprofitable. Even so, Glassdoor’s insights and data could be useful as technology brings radical change to the HR department.
Indian hospital penta-scrum poses board quandary 9 May 2018 Five bidders want to invest in ailing Fortis, valuing it at up to $1.4 bln. Offers range from small stakes to a full takeover. Lenders and hedgies may want a quick exit, but in a critical care business, directors would do well to consider a treatment that works for the long term.
Hong Kong mall deal feeds economic-hub dreams 9 May 2018 New World Development will invest $2.5 bln to build a sprawling retail centre by the city's remote airport. The pricey project goes beyond wooing flyers, though. It's a bold bet that troubled infrastructure initiatives to link mainland China, Hong Kong and Macau will pay off.
A Fujifilm cash bid for Xerox would work on paper 8 May 2018 Carl Icahn is fighting the Japanese company's complex plan to take control of its U.S. partner, but he's open to a cleaner $11 bln deal. That just about stacks up for Fujifilm in terms of debt needed and an investment return. It'd be far harder to justify strategically, though.
Takeda swallows big dose of risk to buy Shire 8 May 2018 The Japanese drugmaker finally reached a deal to buy its Irish peer, for $62 bln. Takeda can just about make the deal math work with $1.4 bln of annual cost savings. It requires big cuts to R&D, however, and operating with excessive debt for a while. That's a dangerous mix.