Adidas catchup race has further to run 14 Mar 2018 The shoemaker’s shares have outpaced Nike and Puma during a global sportswear boom in the last three years. However, they still trade at a discount to main rivals, despite faster revenue growth and improving margins. Hitting new, higher targets should help Adidas close the gap.
Blackstone’s Schwarzman schools CIC on art of deal 14 Mar 2018 China’s sovereign wealth fund has sold its stake in the private equity firm. CIC only bagged a so-so return from its decade-long investment. For Blackstone’s founder and CEO, meanwhile, the partnership opened some lucrative doors to the world’s second-largest economy.
ArcelorMittal’s India homecoming may be scrappy 14 Mar 2018 The world’s largest steelmaker is back on the acquisition trail with a $6 bln bid for bankrupt Essar. It paves the way for the family to go back to its roots. The Mittals would face an inhospitable environment, but it's probably manageable for a company spawned by a hostile deal.
Qualcomm slays a lion, baits a dragon 13 Mar 2018 Having the U.S. government essentially declare it a national champion allowed the chipmaker to defend itself from rival Broadcom’s bid. But a rise in anti-foreign sentiment may hurt Qualcomm too – since it’s still waiting for China to approve its own $44 bln acquisition of NXP.
Natixis takes lower-risk route to M&A glory 13 Mar 2018 The French investment bank is spending about 100 mln euros on stakes in three boutique advisory firms including the UK’s Fenchurch. Lenders seeking to buy their way up the league tables have a poor record. But the low cost and arm’s-length management reduce the risk of an upset.
China’s AgBank gets an encouraging capital lift 13 Mar 2018 The country's third-largest bank is raising $16 billion from the Ministry of Finance and state-backed enterprises. It's the biggest move yet in Beijing's initiative to address bad loans by shoring up balance sheets. Smaller lenders may require additional financial creativity.
Chinese micro-lender’s $100 bln dream is a stretch 12 Mar 2018 Qudian’s founder CEO Min Luo will forgo his salary until the $5 bln firm tops a $100 bln valuation, bigger than backer Ant Financial. That’s unrealistic for a company trading below its New York IPO price in an industry under intense scrutiny – unless its shareholder turns buyer.
Economics trumps politics for Hong Kong voters 12 Mar 2018 Low turnout at Sunday's by-elections showed the city's pro-democracy movement losing traction. An agenda focused on defying Beijing failed to excite a middle class anxious about inequality and housing. Spending plans for the $18 bln budget surplus might revive their interest.
UBS stands to lose more than IPO fees in Hong Kong 12 Mar 2018 The Swiss bank faces an 18-month suspension from sponsoring market debuts in the Fragrant Harbour. It could withstand the lost revenue, even amid a boom, but the advisory role puts brokers closer to clients. Preserving the brand with Asian entrepreneurs will be a challenge.
China’s iQiyi channels Netflix with a twist 12 Mar 2018 The Baidu-backed video-streaming site wants to raise at least $1.5 bln in an IPO. It's growing quickly and spending cash on new programmes for 50 mln paying customers. But iQiyi also broadcasts live events and sells ads. That makes it a tantalizing hybrid that's hard to value.
Review: The flimsy finances behind China’s miracle 9 Mar 2018 The People’s Republic has long defied the economic doom-mongers. In “China’s Great Wall of Debt”, Dinny McMahon exposes the fragility and contradictions of the country’s growth model. It’s a detailed and original reality check on the latest bout of China hype.
Beijing’s Heineken pint will be tough to craft 9 Mar 2018 Chinese giant CR Beer is in talks to buy the local assets of its Dutch rival for over $1 bln. Premium international brews are attractive in a stagnating market. But fixing the deal terms will be tricky: global players are fiercely protective of their brands.
Jardines can benefit from a spot of retail therapy 9 Mar 2018 Underlying earnings at the Anglo-Asian conglomerate soared to $1.6 bln in 2017. But Jardine Matheson’s food-retail arm is lagging, hampered by Southeast Asia. Exiting hypermarkets, while investing more in e-commerce and convenience stores, would be a good way forward.
M&A rebound is good sign for Indo-Japanese ties 9 Mar 2018 Nippon Steel is part of a bid for bankrupt rival Essar. That would mark a revival of Japanese deals in India after flops with Docomo and Daiichi Sankyo. Healthy financial relations are a prerequisite for creating the harmonious "Indo-Pacific” that Tokyo and Washington both want.
Viewsroom: Trump slaps tariff fear on markets 8 Mar 2018 Imposing levies on steel and aluminum has lost the president his economic adviser, ex-Goldman No. 2 Gary Cohn. That has shocked investors out of complacency. Also: Italy’s elections leave fringe parties in charge. And big deals may be back on the agenda for the mining industry.
U.S. metal tariffs may not be biggest trade worry 8 Mar 2018 The president’s steel and aluminum levies have rattled markets and nudged his economic adviser to quit. A probe into Chinese intellectual-property policy could prove more devastating, though. It commands wide support and could inflict broad trade and investment disruption.
China courts tech and Taiwan with Foxconn IPO 9 Mar 2018 The Apple assembler is set to list a $50 bln-plus subsidiary in Shanghai. Speedy approval shows China is serious about luring tech giants onto mainland exchanges. The People’s Republic is also keen to deepen financial ties with Taiwan, even as diplomatic relations sour.
Congo digs deep hole with overhaul of mining law 8 Mar 2018 The world's top cobalt producer is right to update rules written after a ruinous war. But the dramatic shift to bring in more taxes also reneges on an earlier promised 10-year "stability clause". Unpredictable swings damage an already battered image, and put investment at risk.
Asia’s boardrooms require critical mass of women 8 Mar 2018 One fifth of firms in Hong Kong's Hang Seng Index have all-male boards but appointments of women are rising. The next task is to ensure they are present in sufficient numbers for companies to reap the full rewards of diversity. The multiplier effect applies to girl power too.
Chinese bidders find new way to collar their prey 8 Mar 2018 Geely’s boss used an “equity collar” to amass a $9 bln stake in automaker Daimler fast, and without much hard currency. HNA has done something similar at Deutsche Bank and Swiss travel retailer Dufry. Other Chinese firms could use derivatives to make their money go further.