Telco banks may be consigned to fringes of finance 4 Oct 2017 Orange and Altice plan to offer banking services to capitalise on a boom in digital finance. It’s a novel solution to slowing telecom revenue growth, and similar ventures were a hit in Africa. But mobile operators are entering a crowded field, with no obvious advantage.
India will miss its top banking chief 4 Oct 2017 Arundhati Bhattacharya’s four years atop the country’s largest lender have seen bad debt rise and the shares underperform. But she has made State Bank of India the best of an ailing bunch and stood up to errant tycoons. She sets a high bar for any successor.
Ford’s clever electric van plan in China 4 Oct 2017 The U.S. carmaker is changing course in China, insiders told Reuters, as sales slow. New state policies open an opportunity for Ford to build electric commercial vehicles. That could help meet quotas - and electrify Ford SUVs. Much depends on the partner, and battery supply.
WPP handed lucky exit from Japanese jam 3 Oct 2017 The British ad group, which owns 25 pct of Asatsu-DK, reckons Bain’s $1.3 bln offer for the Asian company is stingy. But WPP is already a winner. CEO Martin Sorrell will either profit from the private equity group’s margin-boosting clout or get the best terms in a decade to exit.
Anil Ambani’s telecoms empire is slipping away 3 Oct 2017 Now that a merger of its mobile unit has failed, the Indian tycoon is running out of options to keep control of his flagship Reliance Communications while reducing its $7 bln of debt. One creditor has already petitioned for insolvency. Others may soon run out of patience too.
Bain has advantage on WPP in Japanese ad-land spat 3 Oct 2017 The U.S. buyout firm wants to buy Japan’s third-largest ad agency for $1.3 bln. That would let Asatsu-DK escape a disappointing tie-up with major shareholder WPP. The UK giant may not like it, but WPP has little room to extract a better price and may have to sell eventually.
Rivals circle Taiwan’s TSMC in new chip era 3 Oct 2017 Morris Chang, father of Taiwan's chip sector, is retiring at 86. His successors were groomed for years to take over the $189 bln behemoth Chang founded three decades ago. They'll need to work hard to defend TSMC's dominance against Samsung and rising mainland competitors.
China rate cut will please all and fool only a few 2 Oct 2017 The central bank will dole out extra liquidity to lenders who help out small businesses. In reality, though, the bar is low and most banks will benefit. Given the Chinese leadership’s emphasis on cutting back debts, it’s a smart way to dress up a future liquidity injection.
Home delivery boom kicks off property scramble 2 Oct 2017 Singapore-listed Global Logistic Properties is buying warehouse owner Gazeley for $2.8 bln. It’s the third big European logistics deal this year as a boom in e-commerce revives the once-sleepy sector. Sovereign wealth and pension funds will increasingly follow consumers’ money.
Crypto-currencies’ strength becomes their weakness 29 Sep 2017 Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.
Ryanair’s cheapskate reputation is its best asset 29 Sep 2017 Angry customers and an irate regulator might pose an existential threat for most companies. Not the budget airline. Cancelling 20,000 flights will cost it a little in compensation and slower growth. As long as travellers favour discount fares, though, its planes will remain full.
Banks’ health squeezed by rampant compliance costs 29 Sep 2017 They now spend an average of around 4 percent of revenue to comply with regulators’ requirements, according to a poll by Duff & Phelps. That is expected to increase to as much as 10 percent by 2022. Red tape will keep weighing on lenders’ margins as well as employees’ sanity.
Xi Jinping can’t get Chinese planes to run on time 29 Sep 2017 As millions of Chinese people set forth to travel during the "Golden Week" holiday starting Sunday, many could spend more time in the departure lounge than on the beach. Their airports are the world's most delayed, but instead of reforming airspace, Beijing prefers fiddling data.
Expect buybacks but not M&A from China’s Sina 29 Sep 2017 An activist wants the $8 bln web group to consider a sale or a merger with subsidiary Weibo. The former would never get past boss Charles Chao, and the latter is a bad idea. But Chao could compromise by expanding the board, stepping up buybacks and handing out more Weibo shares.
Toshiba swaps electronic for financial engineering 28 Sep 2017 A bizarre $18 bln buyout of its memory unit keeps voting control in Japan, while customers and rivals from Apple to SK Hynix provide cash. The deal could also be re-cut thanks to a spat with JV partner Western Digital. The confusion means the risk of a Toshiba delisting persists.
Charmed life for Indian IPOs may be short 28 Sep 2017 Huge inflows of domestic cash and a lack of healthy financial stocks have helped two insurers float at punchy valuations. At this rate, India is on track for a record year for new issues. But foreigners are selling and the economy looks shaky. Would-be issuers need to move fast.
Hit IPO undercuts the case for new Hong Kong board 28 Sep 2017 Shares in Chinese online insurer ZhongAn soared on their debut. This deal suggests the bourse’s push for a new venue with looser standards is misguided. The city should be able to lure desirable Chinese tech listings just fine by making tweaks to the existing regime.
India walks tightrope with “black money” fight 27 Sep 2017 Premier Narendra Modi has unleashed a raft of initiatives to root out income obtained illegally or hidden from the taxman. The cost has been a sharp slowdown in growth. The potential prize is a big uptick in India’s ability to spend – and an easier path for Modi to re-election.
Trump’s new Democrat friends put China on notice 26 Sep 2017 The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.
Alibaba trades margins for clarity in logistics 26 Sep 2017 The tech giant is paying about $800 mln to lift its stake in logistics arm Cainiao slightly to 51 pct. Keeping the unit at arm’s length had prompted SEC scrutiny. But absorbing the capital-intensive and loss-making Cainiao into the parent’s accounts will weigh on margins.