Foreign banks find silver lining to U.S. clouds 20 Mar 2018 Congress isn’t handing the same regulatory relief to the stateside businesses of HSBC and others as it is to midsize domestic lenders. But Washington’s shift to more tailored regulations for the industry should at least give embattled foreign banks a bit of a break.
Mile-high stake swap could feed Air India bid 20 Mar 2018 Jet Airways may be interested in the soon-to-be privatised national carrier. However, Naresh Goyal’s airline would need serious financial help to make an offer fly. Abu Dhabi’s Etihad may need to make room for a new large strategic investor.
China’s regulatory mega-merger howls for synergies 20 Mar 2018 Uniting banking and insurance oversight while consolidating the work of other ministries should relieve burdens Beijing puts on private enterprise. Big layoffs would be an important next step for the new regime. Idle paper-pushers have grown too fond of mindless crackdowns.
D.C. subway could ride Hong Kong’s MTR 20 Mar 2018 The Washington Metro's equipment and safety woes are a smoking symbol of U.S. infrastructure ineptitude. Market-based fixes would be wise. Other cities have hired Hong Kong's mass-transit provider for help, but its property and punctuality playbook also may be replicable.
Alibaba presses its advantage in Southeast Asia 19 Mar 2018 The e-commerce giant is pumping $2 bln more into regional subsidiary Lazada, and replacing the group’s founder-CEO with Alibaba veteran Lucy Peng. Armed with her fintech expertise, Lazada can use mobile payments to entrench its regional lead over rivals Amazon, JD and Sea.
China Literature results could use more drama 19 Mar 2018 Tencent's $10 bln e-books arm reported strong debut numbers as a public company, with sales up 60 pct. But user growth is slowing, and hype over turning historical novels and kung fu epics into hit movies has yet to deliver. A lofty valuation requires a bit more excitement.
China’s new central banker is a gesture to U.S. 19 Mar 2018 Vice Governor Yi Gang was a long shot due to prejudice against "sea turtles", or Chinese with overseas experience. But as well as a reformer, Beijing wanted someone who could reassure foreign investors. Yi is both. The financial bureaucracy needs more like him.
Viewsroom: How long should a leader lead? 16 Mar 2018 China’s President Xi Jinping can now stay in power for life. Goldman Sachs CEO Lloyd Blankfein seems ready to retire after 12 years at the top. Yet five years may be the ideal length of service. Breakingviews columnists discuss the limitations to limitless rule.
Review: The pitfalls of managing by measurement 16 Mar 2018 Excessive dependence on quantitative indicators has long caused trouble. Yet as Jerry Muller shows in “The Tyranny of Metrics”, a fixation with targets still distorts the behaviour of teachers, doctors and executives. Though data matters, it’s no substitute for judgment.
Li Ka-shing’s exit ushers in new era for tycoons 16 Mar 2018 The Hong Kong magnate built a property-to-telecoms empire. At 89, Li retires as the city faces economic and political uncertainty, while protectionism globally is on the rise. For his son and successor, Victor Li, replicating the returns his father delivered will be tough going.
China’s corporate-exposé programme jumps the shark 16 Mar 2018 A popular consumer-rights show fell flat targeting VW again and small bike-sharing startups. State broadcaster CCTV's yearly investigations once scared CEOs and even knocked their share prices. After helping deliver the message on quality control, "3.15" is no longer must-see TV.
Wesfarmers supermarket spinoff is a good start 16 Mar 2018 The sprawling A$50 bln Australian conglomerate plans to list Coles separately and under a new boss. Pushing out the slow-growth, capital-draining company should make Wesfarmers more appealing to investors. A broader carve-up including Britain's Homebase would also make sense.
Asian defence firms can exploit local insecurities 16 Mar 2018 Beijing is cranking up military spending and other regional governments are gunning up as the U.S. security umbrella frays. Manufacturers like Korea Aerospace, Japan’s Mitsubishi Heavy and even China's AVIC are ready to take a bigger bite of a $160 billion regional weapons market.
India’s central bank chief rises to occasion 15 Mar 2018 Typically reserved Urjit Patel has robustly defended the RBI after New Delhi blamed it for the $1.8 bln Punjab bank fraud. To preside properly as a regulator, it needs the same power over governance at state banks as private ones. The sooner politicians realise it, the better.
Asia may reward private equity’s patient capital 15 Mar 2018 After years of wrestling with the region's founding families and companies, the buyout model is paying off, new research from Bain suggests. Deals are pricey, but getting bigger. If more like Toshiba and GLP come along, Asia itself could turn into a solid long-term investment.
China’s lithium trouble in Chile hints at more 15 Mar 2018 A government agency wants to block Tianqi Lithium's bid for a stake in $13 bln rival SQM, arguing the market is too concentrated. China seldom gets pushback in resources M&A. Beijing can expect more potholes as it tightens its grip on ingredients for electric vehicle batteries.
China and U.S. trade places in 5G space race 14 Mar 2018 America is nudging Qualcomm into the role of a national tech champion. China is a potent rival, and has pushed home champs Huawei and ZTE into global leaders. The trouble is that Beijing is expert at bending firms to its will, while Washington is grappling to define its new role.
Hadas: Businesses need to cut back on half-truths 14 Mar 2018 In the age of digital activism, propaganda’s dire power corrupts politics and divides society. Companies too often join in, pushing agendas with scant regard for the full truth. That’s bad for the world. And if politicians respond by attacking corporations, earnings will suffer.
Prudential breakup is only a partial solution 14 Mar 2018 The global insurer is to demerge its European operations into a separate UK-listed arm. That could help unwind a discount to the probable sum of its parts but carries costs as well. Pru investors might have been better served by a sale, or an unpicking of the U.S. and Asian arms too.
Cathay Pacific is on a better flight path 14 Mar 2018 Fares remain under pressure and oil prices lofty but the airline is carrying more cargo and, separately, collecting more income through its stake in Air China. The result is a profitable second half. Unwinding fuel hedges and tackling costs should help it fly higher.