Asia-Pacific

Savory European fare feeds China’s M&A cravings

18 April 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 April 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 April 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 April 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 April 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 April 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.

Tesla in pole position to win U.S.-China trade war

17 April 2018

Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.

Zambia debt dispute undermines African credit

17 April 2018

The copper producer has denied it has dollar debt beyond its $8.7 bln of foreign borrowing. Its vague clarification comes two years after a $3 bln bond scandal in neighbouring Mozambique. Bilateral lending, particularly from China, is blurring the credit picture across Africa.

U.S. regulators ask if ZTE can hear them now

17 April 2018

The Commerce Department barred domestic companies from selling to the $20 bln Chinese telecoms equipment maker for years. It's a big blow given how much ZTE sources from the United States. Things could get worse depending on how fast political winds shift against it in Europe.

Widening net of China censors puts tech on notice

17 April 2018

Jokes and gay content are disappearing from the web. It's a fresh sign censors are policing beyond political discourse. For $25 bln microblog Weibo and peers, appeasing both users and regulators will get harder. It will make life tougher for China hopefuls like Facebook, too.

China’s two-track money policy hangs over economy

17 April 2018

Even as GDP grew 6.8 pct, industrial activity looks cooler, auguring a softer government line on bad debt. Higher official interest rates are being offset by short-term injections that keep the real cost of cash down. That could weaken the yuan and stir up more trade trouble.

Qualcomm’s future stuck on slow boat to China

16 April 2018

The chipmaker’s strategy depends heavily on closing its $44 bln NXP deal. A possible trade war leaves Chinese regulators in no mood to approve the U.S. company’s purchase, though. Qualcomm does have one bright spot: its long-running spat with Apple may be coming to a head.

Russia’s banks could once more be its airbag

16 April 2018

The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.

Shire cancer sale boosts weak takeover defences

16 April 2018

The $47 bln drugmaker facing a potential bid from Takeda sold its cancer treatments for $2.4 bln. Shire’s debt and doubts over its business weaken its resistance. The best bet may be to show that a Takeda offer undervalues its business. But more radical surgery could be tricky.

Mercuria/ChemChina oil each other’s strategies

16 April 2018

The Swiss commodities group looks set to get a stake in the Chinese state-owned giant’s refining assets, a rare coup. In return, ChemChina gets shares and a boost for Beijing's campaign to gain clout in global trading. It's a deal where both can profit.

Ailing Indian hospitals warrant healthy bid action

16 April 2018

Buyout firm TPG is backing one of three rival offers valuing scandal-hit Fortis at up to $1.3 bln. Private services are in demand with rising incomes and an increase in lifestyle diseases set against New Delhi's failure to provide decent healthcare. Medical tourism helps, too.

China builds South Sea free-trade-zone bubble

16 April 2018

President Xi plans to turn the island province of Hainan into a special area with new commodity markets and lower trade barriers. The plan muddles a regional development strategy around Hong Kong and Shenzhen, but it benefits speculators – and embattled local champion HNA.

Singapore ruling gives Uber deal yellow light

16 April 2018

Regulators have tapped the brakes on Southeast Asia's ride-hailing mega-merger. They won’t halt a deal with rival Grab but have limited data-sharing and driver exclusivity contracts, at least while they review. That’s an amber signal, and a sign of potholes ahead.

Meituan steers onto collision course with Alibaba

16 April 2018

China's $30 bln delivery outfit wants to be an all-in-one consumer services app. That pits it against Jack Ma's e-commerce giant, now contesting Meituan in food takeaway and bicycle sharing. Ties with deep-pocketed Tencent could make the underdog more than a nuisance.

Review: America’s founding was all about the money

13 April 2018

“New World, Inc.” explores the role of British merchant adventurers in laying the groundwork for the colonial settlements in Virginia and Plymouth. The book is a prequel of sorts to the Pilgrim creation myth that suggests Mammon, not religious freedom, drove America's creation.