Indonesia lays bare green-bond growing pains 27 Feb 2018 The country's $1.25 billion fundraising is hard to square with its palm-oil and coal exports. Issuers with the least eco-conscious credentials, though, are also important to lure onto the bandwagon with financial incentives. It's the various shades of green that are awkward.
McKinsey’s next leader inherits a big project 26 Feb 2018 Kevin Sneader has been chosen to run the elite consultancy. He’s a traditional-looking candidate but a stint in Asia suggests growth markets are a priority. The challenge is to keep digital reinvention on track and avoid embarrassments like that recently suffered in South Africa.
Xi’s open-ended rule bodes ill for governance 26 Feb 2018 China is set to scrap presidential term limits, meaning Xi Jinping could serve as leader for life. For foreign execs and investors, the further consolidation of power means less predictable policymaking. It also raises the risk of bad decisions taken in an information vacuum.
Geely wheels Mercedes into its chop shop 26 Feb 2018 The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.
Anbang is big test of China’s non-market market 23 Feb 2018 The state seizure of the insurer looks designed to leave markets unruffled. It will probably work, since capitalist forces in China are still on a tight rein. The real impact will be subtle, as investors and foreign regulators weigh up this new hands-on approach.
Trump Jr. corrodes India’s anti-corruption efforts 23 Feb 2018 The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.
Anbang seizure flips script on Chinese takeovers 23 Feb 2018 Authorities have commandeered the acquisitive insurer and prosecuted its boss. It is the boldest step yet in Beijing’s battle against financial excess, and is meant to protect policyholders and avert systemic trouble. The move may also be a worrying omen for HNA and others.
Apple tide will lift fewer Asian supply boats 23 Feb 2018 Disappointing iPhone X sales have hurt the value of Foxconn and others in the production chain. The lofty expectations could make recovery harder for many. Specialists like lens maker Largan, though, are better positioned to benefit from fewer but more profitable Apple handsets.
South Korea misses podium in corporate Olympics 23 Feb 2018 The world’s gaze is on the host of the winter games, so it is a bad month to showcase the rot by freeing a Samsung boss or jailing another tycoon amid a corruption probe. At least for Seoul and its mighty conglomerates, the only way is up in the corporate-governance medal tables.
Viewsroom: Chipmaker battle fries M&A circuits 22 Feb 2018 Broadcom has lowered its hostile bid for Qualcomm after its target upped its longstanding offer for NXP. That decreases the chance the two larger rivals can strike a deal – assuming regulators wouldn’t nuke it. Plus: Credit Suisse shines a rare light on Asian investment banking.
Big bank scam reveals India fixed half a problem 22 Feb 2018 A new bankruptcy code tackles a class of large shareholders by transferring power from tycoons to creditors. Government ownership, however, remains troubling, evidenced by the metastasizing $1.8 bln Punjab scandal. New Delhi's interference is the other 50 pct to address now.
Qantas can ride an Australian recovery 22 Feb 2018 The flag carrier has pulled away from regional rivals, with impressive cash generation and record pre-tax profit. Shares are up 70 percent from early 2017, and it is renewing its fleet. Still, higher oil prices and any extra domestic competition could yet mean turbulence.
Westfield’s $15 bln sale is dangerously discounted 22 Feb 2018 The takeover premium is down to just 5 pct of the mall operator's undisturbed price. Unibail-Rodamco shares, being used as currency, have tumbled and the cash component is worth less because of exchange rates. That leaves the deal vulnerable to huffy investors who may want more.
Hadas: Put stock markets in their modest place 21 Feb 2018 Share price movements garner headlines and excite politicians, but not for good reasons. Equity markets play a minor and easily replaceable role in funding investment, and the effect of current values on wealth is almost entirely psychological. They deserve less attention.
Glencore is a weather vane for mining M&A 21 Feb 2018 The Swiss commodity group’s once-swollen net debt is below cash flow, but it will only decide later this year whether to hike dividends further. That leaves CEO Ivan Glasenberg scope to look for deals. If Glencore can’t find any decent ones, its peers probably won’t either.
Revived Santos can turn from prey to predator 21 Feb 2018 Full-year results show the $9 bln Australian gas producer is on the mend, with a narrowing net loss, less debt and more cash. That vindicates last year’s rejection of an opportunistic bid. The next challenge is shifting focus to growth - which could send Santos hunting for deals.
Manila sleepwalks towards inflationary trouble 21 Feb 2018 Price rises are accelerating in the Philippines, as strong demand, a weak peso and new taxes boost living costs. The central bank risks falling behind the curve. Inaction could raise bond yields, slam stock values and further dent Asia’s worst-performing currency.
Stuffed KFC only has itself to blame 20 Feb 2018 The fried-chicken chain owned by Yum Brands had to close hundreds of UK restaurants after running out of poultry. Its plan to cut costs by ditching a long-term supplier for a cheaper one backfired. The cock-up shows that chasing higher margins is no sure way to feather your nest.
Gulliver exits HSBC with nearly full scorecard 20 Feb 2018 The departing CEO largely achieved his goal of creating a “simpler, stronger” bank. Though return on equity was below 10 pct last year, higher interest rates and fewer fines will help HSBC hit that target too. Successor John Flint’s challenge is to identify new sources of growth.
BHP’s good news visible despite coal smudge 20 Feb 2018 Production woes and other setbacks took the shine off $4.1 bln of first-half earnings at the world's largest miner. Yet BHP still offers investors high returns on capital, a solid balance sheet and cash from likely selloffs. Plus a pushy investor is keeping management focused.