Sea IPO lures investors angling for next big thing 20 Oct 2017 The Singaporean startup raised nearly $900 mln in a pricier-than-expected U.S. listing. That suggests investors looked past growing losses for fear of missing out on what could become Southeast Asia’s answer to Tencent or Alibaba. Those comparisons are a stretch.
Kiwis test new formula in central bank petri dish 20 Oct 2017 New Zealand was the first nation to give independent rate-setters an inflation target. Now a new government wants to add employment as an objective. The less painful the switch, the more likely others will adopt goals that better suit today’s economic and political realities.
Riches and new rules weigh down China Mobile 20 Oct 2017 A price war and cuts to roaming fees have hit margins. But the biggest issue facing the $205 bln behemoth is its enormous cash hoard. That is the main reason China Mobile trades at a large discount to peers. Until shareholders see more of the cash, the valuation gap is justified.
Meituan orders up help to be China’s next web star 20 Oct 2017 The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.
PBOC’s Zhou seeks lasting sway with debt warning 19 Oct 2017 The central bank governor is suddenly ramping up calls for reform and warning of a possible “Minsky moment.” With the 19th Party Congress in full swing, the soon-to-depart 69-year-old no doubt hopes to burnish his legacy, and ensure a like-minded successor fills his shoes.
Hadas: Time to slay the free market-myth monster 19 Oct 2017 The oft-told story of vibrant private companies as economic heroes isn’t right, and the common tale of the incompetent state is equally wrong. A new group at University College London can help create a more accurate – and more complex – narrative. The economy is a shared project.
iPhone boost is prelude to bumper year for TSMC 19 Oct 2017 Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.
China’s leaders make peace with its old economy 19 Oct 2017 Output grew 6.8 pct in the third quarter, helped by higher debt, exports and property prices. For all the talk of innovation and deleveraging, the factors driving growth haven't changed. Nor do a few startups signal transformation. For better or worse, Beijing is okay with that.
Taj Mahal spat is a towering political folly 19 Oct 2017 A ruling party lawmaker says "traitors" built the landmark. An official sightseeing booklet omitted it. Yet tourism is one of the best ways to create jobs in India. Playing religious politics with a top visitor attraction is a disservice to Premier Modi's development mantra.
Mistimed writedowns lesser of mining M&A evils 18 Oct 2017 Rio Tinto has been accused by the SEC of hiding the plunging value of a coal mine it bought in 2011. The charges are serious, but at least accounting procedures are fairly clear. If only there were rules that could prevent mining bosses getting carried away during M&A upswings.
Qudian IPO feeds debt-hungry Chinese millennials 18 Oct 2017 The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.
Indonesia’s slowdown belies Jakarta’s reform spin 18 Oct 2017 Eight interest-rate cuts by Indonesia’s central bank since January 2016 are getting little traction with investors or consumers. As growth slows, the urgency is rising for President Joko Widodo to accelerate infrastructure projects, attack corruption and create well paid jobs.
Viewsroom: President Xi Jinping’s moment 17 Oct 2017 The Chinese Communist Party’s 19th National Congress kicks off this week. Delegates at the week-long confab will select new leaders, including for key financial and economic posts. But the spotlight will be on Xi and whether he can consolidate his power and extend his reign.
China’s iQiyi is like Netflix with extra challenges 17 Oct 2017 The Chinese video-streaming service is eyeing a debut on U.S. markets next year and already inviting comparisons to its American partner. Both are burning cash on new content to lure fans. Fickle consumers and limited appeal abroad stand in the way of a $10 bln-plus valuation.
Breakdown: Narendra Modi’s not-so-bright spot 17 Oct 2017 The premier has called India’s sharp economic slowdown temporary but must be worried about a prolonged slump as state elections approach. Investors are more sanguine. Breakingviews explains how things went wrong, what is at stake, and why India might wait out the pain.
Guest view: Chinese oil can fuel North Korea talks 16 Oct 2017 Nothing will concentrate the minds of North Korean leaders more than a Chinese oil embargo, argues William Rhodes, a former Citigroup executive and co-chair of the G30’s steering committee on bank culture and governance.
Blame for Deutsche Bank woe extends beyond CEO 16 Oct 2017 Reports of boardroom tension at the German bank are adding to unease among investors already rattled by a sliding share price. While boss John Cryan may be in the firing line, Chairman Paul Achleitner helped set the strategy. He shares some responsibility for the bank’s malaise.
Toshiba chips let Bain surf a Big Data wave 16 Oct 2017 A group led by Bain is paying $18 bln for Toshiba’s flash-memory unit after a drawn-out sale. The memory industry is cyclical and capital-intensive, and it's also in China’s strategic crosshairs. But a rising tide of demand for bytes will lift Bain's boat first.
Microfinance goes mainstream in India 16 Oct 2017 IndusInd, a bank, has agreed to buy Bharat Financial Inclusion in an all-share deal valuing the poster child of niche lending at $2.4 bln. The 11 pct premium is small but fair given concerns over the long-term sustainability of independent pure-play lenders to the poor.
TPG follows Turkish raki feat with Myanmar whisky 13 Oct 2017 The buyout firm has sold out of Myanmar’s largest spirits company in a $1 bln deal. As it did in Turkey, TPG again bought small, scaled up and sold to a big corporate buyer. Making deals in places like Yangon is an acquired taste – but can yield potent returns.