Ericsson rebirth as much made in China as Sweden 20 Apr 2018 The Swedish telecom-kit maker’s shares soared 15 pct after quicker-than-expected cost cuts. That adds credibility to boss Borje Ekholm’s previously unimpressive rescue effort. An even bigger boost could come from anti-Chinese sentiment harming rivals like Huawei and ZTE.
First blood won’t be last in Aussie bank showdown 20 Apr 2018 The boss of wealth manager AMP quit Friday, as a public inquiry into the financial sector Down Under heats up. The Royal Commission has heard horror stories about lies, dud advice, and lenders charging the dead. Craig Meller’s scalp may not be the only one hung on the gate.
Japan would take turn for worse without Abe 20 Apr 2018 Allegations of cronyism could bring Shinzo Abe’s five-year run as deflation killer to an end. While ultra-loose monetary policies may live on, one potential successor is more focused on North Korea than structural reforms. Markets are being sanguine about the potential fallout.
Viewsroom: Fintech’s growing pains 19 Apr 2018 Upstarts like LendingClub and SoFi need to find ways to keep customers returning – just as traditional banks are fighting back and Goldman Sachs’ digital push into consumer lending takes off. Also: how Malaysia’s prime minister may be re-elected despite the 1MDB scandal.
Shire makes needy suitors work for risky bet 19 Apr 2018 The London-listed pharma group has rejected a 42 bln pound offer from Osaka-based Takeda, and may now face a bid from Botox-maker Allergan. Shire’s business has its challenges, but its would-be acquirers have strategic issues and need a deal. The risk of overpaying is going up.
P&G drug deal needs vitamin shot to persuade Peltz 19 Apr 2018 The U.S. consumer giant is paying 3.4 bln euros for the consumer arm of Germany’s Merck. For it to make sense P&G will have to crank up sales of Seven Seas vitamins while cutting out costs. Board member Nelson Peltz’s criticism of past acquisitions further raises the stakes.
TSMC’s new chips hint at life after Apple 19 Apr 2018 Quarterly sales at the $210 bln chipmaker topped $8 bln, missing estimates. Weak iPhone sales and fizzling bitcoin prices probably weighed. Even so, TSMC is set to debut cutting-edge new semiconductors that will position it ahead of rivals as AI and autonomous cars take off.
Wynn tosses female directors into boardroom brawl 18 Apr 2018 The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.
Loans and fancy flats play Hanoi’s consumer boom 19 Apr 2018 Vietnam's Techcombank and Vinhomes could raise $3 bln through share sales. The lender looks a tad pricey in a frothy market, and doesn’t boast the impressive market lead of the top luxury developer. Still, both can excite investors in Southeast Asia’s fastest-growing economy.
Beijing sets off careless Wanda fire sale 19 Apr 2018 Officials pushed the developer to shed assets to pay down debt, forcing it to scramble to stave off default. Buyers of its properties got discounts that let them book billions in quick profit. In retrospect, Beijing’s meddling looks more hapless than prudent.
Hadas: Knowledge is better shared than patented 18 Apr 2018 China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.
India’s cash shortage may be charged to Modi 18 Apr 2018 ATMs in several states have run out of money amid a spurt in demand. Officials say there is no need to panic. Indeed, cash in circulation is back to where it was before Prime Minister Narendra Modi's bold experiment with large notes. That suggests bad planning is to blame.
China/Russia oil hug can dodge Huarong curveball 18 Apr 2018 Beijing is investigating the state-run asset manager’s chair for graft, in a copy of its probe into private group CEFC. That complicates Huarong’s support for CEFC’s acquisition of a stake in Rosneft. Yet given these are de facto state players, the deal should still survive.
Danone pasteurised debt gives novel way to go green 18 Apr 2018 Banks led by BNP Paribas will charge the French dairy group a lower margin on a 2 billion euro credit line if it hits social and environmental targets. Perversely, lenders would gain if Danone drags its feet. But shareholders now have a clear incentive to do the right thing.
Savory European fare feeds China’s M&A cravings 18 Apr 2018 Property developer Kam Fung may buy Spanish meat producer Incarlopsa, valuing it at 1.2 bln euros. Combining bricks and ham offers no clear benefits, and the price looks rich. But Beijing isn't guiding against food investing, and the Trump era forces a change of deal direction.
China backlash could unravel 5G network effect 18 Apr 2018 Huawei's retreat and ZTE being cut off from U.S. vendors will slow telecom infrastructure development in both America and China. And given how instrumental the two companies are to 5G technology and the power of supply chains, the whole global rollout is likely to be impeded.
China’s new unemployment measure has big job ahead 18 Apr 2018 In the first regular monthly numbers using surveys, Beijing reported a 5.1 pct jobless rate. It's far better than relying on claims of work-seekers. The question is whether officials will trust the gauge enough to scrap GDP growth targets – and if others trust it in a downturn.
Cox: Belt and Road paving way to worrying excess 17 Apr 2018 Hallmarks of speculative exuberance abound with China's plan to recreate modern Silk Road trade routes. There are fancy new banking jobs, silly conferences and creative investment ideas. The danger is the $1.5 trln initiative devolves into an epic era of capital misallocation.
China’s surprise reserve cut exposes growth angst 17 Apr 2018 The central bank cut reserve requirements for banks, freeing $200 bln for lending. That backs up other moves to help over-stretched banks amidst a purge on loose credit. The timing, however, suggests Beijing is looking for a cushion if the economy slows, or a trade war escalates.
IMF does a better job of worrying than forecasting 17 Apr 2018 The international lender's concerns, including protectionism and a sharp shift in financial conditions, are more useful than its unreliable global growth forecasts. The more policymakers fret about such dangers, the more likely the world is to be prepared and avoid the worst.