Rio Tinto holds valuable card in Jakarta deal 30 Nov 2017 As Freeport-McMoRan thrashes out terms for handing over a majority stake in the Grasberg copper mine to Indonesia, Rio's production arrangement dating back to 1995 gives it an effective veto. The best way to play this ace up its sleeve would be to negotiate a graceful exit.
Alibaba and the 40-year bond is one tall tale 29 Nov 2017 The e-commerce giant is selling the longest fixed-maturity paper ever by a Chinese company. Jack Ma’s outfit is smart to lock in cheap funding while it can. But with Beijing looking to influence the tech sector, investors should think hard about four decades of political risk.
Hadas: Bitcoin at $10,000 is even more dangerous 29 Nov 2017 The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.
Nomura makes timely return to merchant banking 29 Nov 2017 The Japanese group that once had Guy Hands investing money for it is starting a new $900 mln buyout fund. There are potential pitfalls, like client clashes and politically-driven deals. If they're avoided, though, Nomura could use its plentiful capital to generate solid returns.
Trump gives Xi first taste of trade acrimony ahead 29 Nov 2017 The afterglow of the U.S. president’s trip to China faded fast. Unimpressed by Beijing's progress on North Korea and market opening, he is taking an aggressive stance on aluminium dumping. This sets the stage for uglier, more economically significant fights on trade.
China credit move a plus for twitchy web lenders 29 Nov 2017 The web finance watchdog will create a credit rating platform with private companies including Tencent, says China Daily: a healthy development in a messy industry. But forcing big players to share too much proprietary data could dilute competitiveness and discourage innovation.
Wall Street chip analysts put a “buy” on research 28 Nov 2017 Bearish Morgan Stanley notes on memory prices were followed by $25 bln in lost market value for Samsung, TSMC and Western Digital. Despite an excess of cheerleading from the sell-side, it has the power to move markets. It's a timely reminder as the business model faces upheaval.
Uber backers face head-on collision with greed 28 Nov 2017 SoftBank is offering to buy shares in the ride-hailing firm at a $48 bln valuation. Even with a 30 pct markdown to the last fundraising, investors could cash out and make many multiples of their money. The prospect of a $500 bln colossus, however risky, will cloud the thinking.
Chinese trust hurries IPO before music stops 28 Nov 2017 A Shandong outfit wants to raise up to $450 million by listing in Hong Kong. Trust companies helped found China’s shadow finance system, but as Beijing squeezes off-balance sheet lending and competition rises from banks and startups, investor appetite is likely to be limited.
Microchip boom short-circuits Singapore’s growth 28 Nov 2017 Revised GDP revealed a surprisingly strong 5.2 pct quarterly lift for the city-state's $300 bln economy. As in other parts of the world, however, the expansion has yet to power wages or jobs. Cyclical semiconductor output flatters the figures and warrants investor caution.
Cowen deal collapse spells pain for Chinese firms 27 Nov 2017 Unexpected resistance from U.S. regulators led the investment banking boutique to scrap a stake sale to CEFC China Energy. Beijing connections once seemed to be the outfit’s entrée to global M&A but now loom as a big obstacle. Chinese companies may need a new overseas strategy.
Kuroda deserves second term at the Bank of Japan 27 Nov 2017 Prime Minister Shinzo Abe is being coy about whether Haruhiko Kuroda will get a second term as Bank of Japan head. Kuroda has earned it, and Japan’s deflation fight would benefit from continuity. But he also needs help from Abe’s team, which has been slow to enact vital reforms.
Indian family writes its own philanthropic code 24 Nov 2017 The Bhartis are donating $1.1 bln to their own foundation. Though the sum pales next to other billionaire pledges, there's a creative twist. Money will be used to start a university to teach AI and robotics, free to poor kids. There's no global playbook when it comes to giving.
China’s bond squeeze could spread offshore 24 Nov 2017 Beijing's hard line on risky lending is spilling into the sovereign bond market and knocking shares in financial companies. The stock volatility has limited international significance, but an onshore fixed-income panic could infect China's offshore dollar debt pile.
Hadas: Be thankful for good economic news 23 Nov 2017 The launch of bitcoin futures contracts grabs headlines, but has no weight on the scales of history. A half-century of sharp declines in global misery is another matter. This may be the greatest economic achievement ever. Be grateful - and angry at how much is still not done.
India eyes governance brute force to check tycoons 23 Nov 2017 A proposal to follow the UK and require listed companies to have separate chairmen and CEOs is heavy-handed. It comes amid an effort in India to learn from past mistakes that have brought a mountain of bad debt, but an overly prescriptive approach risks unintended consequences.
China’s new energy star brandishes licence to deal 23 Nov 2017 Even as outbound M&A slows, privately held CEFC emerged from nowhere with bids for stakes in Russia's Rosneft, Czech banks and a U.S. brokerage. Now it's eyeing Time Warner's European TV broadcaster. This enigmatic buyer may stoke paranoia about Beijing's investment intentions.
Indonesia can close gap with tiger cub neighbours 23 Nov 2017 Stellar growth in Singapore, Vietnam and elsewhere means Indonesia is the laggard in a booming region. President Joko Widodo could do more to catch up, moving faster to upgrade infrastructure. Reassuring foreign firms by solving an ugly mining dispute would help too.
The Exchange: Jim Rogers 22 Nov 2017 The longtime Asia bull and Quantum Fund co-founder thinks the worst bear market of his lifetime is coming. He swung by our Hong Kong bureau to discuss the risks, as well as Trump’s Asia tour and why America could become its own worst enemy if it lets China dominate the region.
Chinese micro-lender has big problems 22 Nov 2017 Beijing is clamping down on online outfits that issue small-ticket loans to Chinese consumers. The regulatory uncertainty has spooked investors in the rapidly growing industry. It is another reason why New York listing hopeful LexinFintech may have a tough ride.