Anti-LBO activist could benefit Toshiba investors 12 Dec 2017 A hedge fund says the Japanese conglomerate need no longer divest its $18 bln memory unit after raising $5 bln in equity. It has a point: the deal was a fire sale. A quick halt is unlikely, but a U-turn would be possible and desirable if the transaction doesn’t close by March.
Canadian Solar CEO deserves some shareholder shade 11 Dec 2017 Shawn Qu is offering a 7 pct premium to take the renewable-power firm private. It’s a cutthroat industry. But medium-term demand is strong. And Canadian Solar stock surged more than two-fifths this year. Investors should have no qualms forcing Qu to put more energy in his bid.
Bitcoin futures set scene for more gambling 11 Dec 2017 The 20 pct surge on new CBOE cash-settled contracts is sedate by crypto-currency standards. There’s still cause for concern. Rather than being a useful hedge, futures make it easier to trade bitcoin without actually owning it. For now they have little utility beyond speculation.
U.S. hands HSBC CEO perfect going-away gift 11 Dec 2017 The end of a five-year agreement over money-laundering lapses removes the threat of authorities yanking the bank’s U.S. licence. HSBC devoted 8 pct of its operating expenses to compliance last year. Though those costs will stay, departing boss Stuart Gulliver can leave on a high.
Australian waste deal may scrap shareholder value 11 Dec 2017 Trash hauler Cleanaway is buying rival Tox Free for about $625 mln, including debt. The deal is prudently funded with equity, and promises sufficient synergies to cover the premium being paid. Unless more savings can be found, though, the high price implies a rubbish return.
Chinese bond fraud leaves unseemly paper trail 11 Dec 2017 Bank regulators imposed a record $109 mln fine on a Guangdong lender for faking letters of guarantee to a corporate issuer. Stiff penalties might encourage better controls. A system-wide tech upgrade also would help. Improving China’s credit culture, however, will be a long slog.
Uber’s taxi U-turn sets better Southeast Asia path 11 Dec 2017 Co-founder Travis Kalanick used derisive terms to describe the regulated industry he was trying to upend. Uber's new boss, however, just struck a deal with Singaporean taxi company ComfortDelGro. The JV should help it pare losses and compete in a tough market with rival Grab.
The Exchange: Marcus Ruiz Evans 8 Dec 2017 The president of Yes California leads a campaign arguing that the Golden State should become an independent country – an idea increasingly referred to as Calexit. He explains why secession would be good for the state’s economy and how he’ll get the rest of the nation to buy in.
Seoul’s contrarian tax hike makes for good start 8 Dec 2017 President Moon bucked global trends by raising South Korean corporate taxes to 25 pct from 22 pct and lifting the minimum wage. That will help curb the giants stifling competitiveness and fuelling inequality. Next comes tightening antitrust screws and lowering takeover barriers.
China’s new regulator could tighten bank squeeze 7 Dec 2017 The China Banking Regulatory Commission’s new vice chair is a confidant of former anti-corruption czar Wang Qishan. Watchdogs are already clamping down on the financial sector. As people from Wang’s no-nonsense camp join the fray, banks and their investors should brace for more.
New bank rules are kind without being weak 7 Dec 2017 Big lenders will need a trifling 27.6 billion euros of fresh equity capital under new Basel regulation. Rules on the use of internal models are no worse than feared, and kick in slowly. This is hardly draconian – but that’s because banks have already done much of what was needed.
Bitcoin looks like speeded-up unicorn hype 7 Dec 2017 A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.
UK gender pay data needs rigorous audit 7 Dec 2017 Some British companies have suspiciously reported no gap between the pay of male and female employees, the Financial Times found. The government thought transparency would help close the divide. To be credible, though, the data must be audited – and offenders punished.
Walgreens gets in early on healthy growth in China 7 Dec 2017 The U.S. chain is paying $416 mln for 40 pct of peer GuoDa. A sensible shake-up of drug distribution and sales by Beijing is spurring consolidation and giving pharmacies a stronger hand. This deal gives Walgreens market insight and could be a springboard for more investment.
China’s aspiring Glencore will drill deep 7 Dec 2017 Beijing wants a seat at the oil trading table. State firms like Chinaoil are no lightweights, but private CEFC could become the first independent player to challenge the likes of Vitol. Its supply deals, political ties and financial backing make it a rival to contend with.
Wanda’s asset shuffle buys brief Beijing reprieve 5 Dec 2017 The indebted Chinese conglomerate is shuffling assets around, including a $470 million cash injection from its founder, as officials pressure firms to deleverage. The cash will help pay down $1.7 bln in offshore loans, but it will take more to escape the government penalty box.
A $50 bln Xiaomi comeback is hard to figure 6 Dec 2017 After its fall from grace, the Chinese handset maker may be mulling an IPO again. Sales are on the rise, thanks to markets like India and other items including air purifiers. Even so, only optimistic assumptions and Hong Kong's tech fever can justify the eye-popping valuation.
EU fight against tax havens has flaws 5 Dec 2017 The bloc has put 17 jurisdictions, including Panama and South Korea, on a blacklist for failing to fight tax abuses. European Union countries, however, are free to decide what steps to take against offenders. A laudable drive can be undermined if some choose a lenient approach.
Jack Ma enlarges his Chinese payments peloton 5 Dec 2017 Having invested in bike-sharing giant Ofo, Alibaba affiliate Ant is putting another $300 mln into rival Youon. That's 80 mln potential users to lock into Ma's Alipay system. The move reflects rising stakes in a cutthroat battle with Mobike, backed by payments rival Tencent.
Prysmian’s U.S. cable tie-up is well thought out 4 Dec 2017 The Italian cable-maker is buying loss-making U.S. rival General Cable for $3 bln including debt. The hefty premium is deserved if the buyer can deliver chunky cost savings. In a sector where scale is all-important, the deal helps Prysmian see off European and Chinese opponents.