Asian energy deal defies green resistance 26 Oct 2017 The $5 bln sale of Equis solar and wind projects in Australia, Japan and beyond to a global fund group sets a new benchmark. As clean projects expand, they'll attract oil titans, too. Donald Trump and Malcolm Turnbull may discount renewables, but investors are inflating them.
Review: Hong Kong’s recipe for more instability 27 Oct 2017 Three short books analyse the city’s politics after 20 years in Chinese hands. Freedom sets it apart from the mainland, but without full democracy to match Hong Kongers rely on protest instead. An ineffective executive and an implacable Beijing turn this into a combustible mix.
China’s Baidu stumbles in getting back to basics 27 Oct 2017 Investors wiped $10 bln from the web giant’s market value after it forecast disappointing sales for the rest of 2017. Baidu has cut costs and narrowed its focus to revitalise its scandal-hit search business. Unfortunately that has yet to translate into less volatile results.
Viewsroom: China’s leader cements his power 26 Oct 2017 President Xi Jinping emerged stronger at the end of China’s Communist Party Congress. His desire to consolidate control however may not help his plans to keep the Middle Kingdom’s economic engine humming. Plus: U.S. telecom firms try again to dial up a merger.
Hadas: Greed is best indicator of financial crisis 26 Oct 2017 New research casts small-time property investors as the secret villains in the 2007 U.S. house price collapse. As usual, the love of leverage was the root of financial distress. Balance sheets are stronger today, but investors still haven’t learned the virtue of moderation.
NTT Docomo is shrinking to greatness 26 Oct 2017 The Japanese mobile giant will repurchase up to $2.6 bln of shares. With limited growth options, Docomo must shower shareholders with buybacks and dividends to grease returns. In turn, that helps its separately listed, state-backed parent NTT keep its own investors sweet.
Qantas has clear skies ahead 26 Oct 2017 The Aussie airline briefly unsettled investors by warning of stiffer competition, rising fuel costs and a few months of lower growth. But the domestic outlook is good and its market position is strong. Despite a breakneck rally, Qantas's share price is still grounded in reality.
Beijing’s dollar bonds seek to reprice China risk 26 Oct 2017 A $2 bln sovereign dollar bond sale is the country’s first since 2004. Despite rating downgrades, the two-part deal is priced aggressively, with slim premiums to U.S. Treasuries. Local banks can guarantee demand, which could artificially cut borrowing costs for Chinese issuers.
China’s bike-share firms must switch gears in U.S. 25 Oct 2017 Mobike and Ofo, the People’s Republic’s two biggest dockless cycle-share startups, are cruising into American cities. Aggressive expansion makes sense in this winner-take-most market. But city officials and local rivals may force them to hit the brakes in unfamiliar ways.
Investors embrace Indian bank recap on any terms 25 Oct 2017 Shares of India’s 20-odd state banks added about $15 bln of market value on news of New Delhi's planned bailout. The scheme should let lenders take proper hits on bad debts, and resume profitable business. Yet key terms, and allocations to individual banks, remain unclear.
China’s autocracy puts end to reform illusions 25 Oct 2017 As China's Communist Party tightens its grip, Western hopes that rising incomes would produce more economic and political opening look like wishful thinking. Delusions about inevitable reform are best set aside. For foreign capital this "new era" looks riskier than the last.
Chinese oil major CNOOC tests limits of self-help 25 Oct 2017 Results show the Chinese state-owned oil giant has clambered out of a hole. An ill-timed 2013 acquisition of Canada's Nexen forced relentless cost-cutting which is now paying off. Stubbornly weak crude prices, and China's electric vehicle push, could cap investors' appreciation.
Xi’s new stature can overawe China’s market forces 25 Oct 2017 The president emerges from a key party congress with his name in the constitution, no successors in sight, and a mandate to push his agenda faster. Xi Jinping still talks reform, but this intimidated system may become more responsive to his whim than supply and demand.
Activist broadcasts Japanese governance weak spot 25 Oct 2017 A UK investor wants TBS to sell corporate stakes and return cash to shareholders. Fair enough: The $3.5 bln TV network owner has little obvious use for Tokyo Electron and other holdings. Despite some broader progress, it will take more pressure to break this bad Japan Inc habit.
India bites bullet with $32 bln bank bailout 24 Oct 2017 New Delhi is finally tackling state lenders’ bad debts. Clever financing through “recap bonds” should reduce the strain on the public purse and soak up banks’ idle cash. The final amount may need to be higher, but the recapitalisation should help revive India's flagging economy.
Fiat Chrysler looks boxed in by M&A options 24 Oct 2017 Sergio Marchionne's revamp is picking up speed. But the carmaker is still worth little more than half the 40 bln euros at which the Agnelli family might consider a sale. That figure is beyond Chinese suitor Great Wall and a stretch for global peers. Fiat may be stuck where it is.
Infosys new-old saviour fails to make a splash 24 Oct 2017 Founder and returning Chairman Nandan Nilekani is throwing away revenue growth goals for India’s IT services group. He’s also putting past controversies over M&A and pay to rest. But details on a new strategy are light, a CEO search continues, and the board still needs a revamp.
Indian lender becoming world’s biggest little bank 24 Oct 2017 HDFC Bank shares have soared 50 pct this year amid strong income gains. A market cap near $90 bln puts it ahead of many global peers despite a balance sheet that pales by comparison. The plight of India state lenders makes a valuation of four times book less scary than it seems.
Tencent’s books are less gripping than its games 24 Oct 2017 Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.
China’s mouldy cheese ban leaves lingering stink 23 Oct 2017 Authorities have called off a blockage on imports of Brie, Roquefort and the like. Food safety fears threaten China’s growing appetite for dairy and other foreign fare. The risk of such reactions from a maturing market will require investors to have a strong stomach.