Even China can’t thaw Alaska’s LNG ice age 9 Nov 2017 Exxon and BP walked away from liquefied natural gas projects in the U.S. state last year because the costly endeavor doesn’t compute at current prices. China’s cheap debt and need for gas alter the equation. But other energy sources still look better than the Last Frontier.
Apple has deciding vote in Broadcom-Qualcomm deal 9 Nov 2017 A dispute over iPhone royalties left U.S. chipmaker Qualcomm vulnerable to rival Broadcom’s opportunistic $105 bln bid. Settling could preserve its independence. The question is whether Apple thinks a bigger Broadcom would be slavishly devoted, or even surlier.
Cox: Lisbon turns Tatooine for tech Rebel Alliance 9 Nov 2017 If the internet world can be likened to Star Wars, its dominant companies are the Death Star – and EU competition enforcer Margrethe Vestager is Princess Leia. But the insurgents descending on Portugal's capital are mostly finding ways to live with, not overthrow, the empire.
Cars are the last big headache for Tata 9 Nov 2017 Newish group Chairman Natarajan Chandrasekaran has moved swiftly, tying up loose ends in steel and telecoms and reducing cross-shareholdings. The money-losing Indian unit of the $21 bln Tata Motors may be the toughest challenge. Even here, there are signs of a turnaround.
China’s vitamin collusion is a bitter trade pill 9 Nov 2017 Beijing wants to be treated as a rule-abiding market economy. But in an ongoing legal dispute, Chinese officials say they pushed domestic vitamin makers to coordinate prices in the U.S. market. China’s unwritten trade rules are often more important than the written ones.
Malaysia throws cash into middle-income trap 9 Nov 2017 Najib Razak’s new budget lavishes cash on farmers, fishermen and rubber traders. But it is a transparent attempt to divert attention from the prime minister’s corruption woes without boosting competitiveness, narrowing inequality or helping Malaysia escape stagnation.
Tencent and Snap send short message to Facebook 8 Nov 2017 The owner of China’s killer app WeChat now owns 12 pct of its struggling vanishing-photo peer. Even though the shares are non-voting, Snap has reason to embrace a powerful new friend. And Tencent will be slightly better positioned should Facebook get an entry visa from Beijing.
Qatar makes timely escape from Indian telecoms 8 Nov 2017 A decision to sell a $1.5 bln stake in Bharti Airtel may have been forced. The four-year investment nevertheless brings a decent return from a savaged industry. A price war could ease after recent consolidation, but India’s top operator faces more challenges from a bold upstart.
Hadas: Even China will struggle to control finance 8 Nov 2017 With state-dominated banks, capital controls and a trade surplus, along with a strong economy, the People's Republic would seem well-placed to limit the risk of foreign debt. Not so. As a new report illuminates, China, like its global peers, is vulnerable to a liquidity crisis.
Hong Kong’s IPO market is turning Chinese 8 Nov 2017 China Literature smashed the chandeliers in its $1.1 billion Hong Kong debut, soaring more than 80 pct in early trade. As local punters swarm into mainland tech, the new-issue market is mimicking distortions common in China. For the exchange, it's a good problem to have.
China’s Sina fires up governance Wayback Machine 8 Nov 2017 Days after escaping a board insurgence effort, the web outfit issued new stock that hands control to its chairman. It retroactively aligns Weibo's parent with Silicon Valley structures just as momentum swings against them. It's a bad turn for China Inc that also cost $500 mln.
Singapore Airlines seeks altitude to outfly rivals 8 Nov 2017 The city-state’s $9 bln flag carrier has embraced change. It has a restructuring plan, a low-cost arm, and a fancier first class. But with Norwegian Air and Qantas invading profitable routes, it will have to crack on. That includes deciding what to do with regional arm SilkAir.
Congressional stick may beat Trump’s China bombast 7 Nov 2017 The president has talked tough about punishing the nation’s largest trading partner, but mostly avoided measures like tariffs. Now some U.S. lawmakers want to make it hard to buy American companies. Such bipartisan legislation poses a bigger risk to Beijing than the White House.
Lycra is stretch project for China’s budding LVMH 7 Nov 2017 Shandong Ruyi snapped up the sporty fabric brand from a subsidiary of Koch Industries for more than $2 billion. That advances the firm’s quiet aim of becoming China’s Louis Vuitton. While less bold than moves by other Chinese conglomerates, it just might work.
Hong Kong tech fervour defies Western IPO wobbles 7 Nov 2017 Investors have snapped up shares in Razer, a maker of keyboards for gamers, and China Literature, an electronic publisher backed by Tencent. That contrasts with signs of IPO fatigue in New York and London. Limited supply, particularly in tech, has helped keep the market healthy.
Indian proxy firm successfully hits a nerve 7 Nov 2017 ITC, the $50 bln hotels-to-tobacco group, is alleging defamation over criticism of its board. Institutional Investor Advisory Services didn't persuade shareholders to vote against the chairman's pay. The case nevertheless is a turning point for scrutinizers of Indian governance.
Bumper listing in Vietnam sets speedy precedent 7 Nov 2017 Byzantine rules have discouraged flotations, subduing trading and deterring foreign investors. The faster, simpler structure used by Warburg Pincus for a $700 mln deal is a step towards changing that. More private equity-backed debuts could follow.
China’s Evergrande closes in on magical rebirth 7 Nov 2017 The property developer controlled by Xu Jiayin just raised another $9 bln by selling down a stake in a subsidiary. Based on the market reaction, the bold campaign to reduce debt is working. Pressure is now on, though, to complete the amazing turnaround with a Shenzhen listing.
Broadcom lenders shed prudence just as it’s needed 6 Nov 2017 The chipmaker’s advisers are “highly confident” of arranging finance for its $105 bln Qualcomm bid. Ample liquidity, low defaults and easing regulations have banks itching to lend. But rising corporate leverage and looser covenants pose big risks for anyone coming to the dance.
Broadcom faces down ghost of chip LBOs past 6 Nov 2017 The $111 bln soon-American-again chipmaker offered $105 bln for Qualcomm. If the unsolicited bid goes anywhere, borrowing nearly $90 bln would send debt-to-EBITDA ratios towards leveraged buyout territory. Two former chip LBOs – Freescale and NXP – give pause for thought.