Prada can grow into frilly valuation 14 Feb 2017 An investor who bought shares in the Italian luxury company's 2011 flotation is 12 percent worse off today. But the slide in Prada’s sales is slowing. If China recovers and the handbag maker makes up lost ground online, its sky-high price-earnings ratio will look more fitting.
Sinochem pounce on revamped Noble Group is timely 14 Feb 2017 The Chinese conglomerate is reportedly looking to buy into the Singapore-listed trader. Joining a capital hike last summer would have been cheaper. With much of Noble’s restructuring done and commodities prices rising there could still be upside for Sinochem, if it moves fast.
Singapore banks running out of profit defences 14 Feb 2017 Singaporean lender OCBC posted disappointing results due to higher bad debt charges, driven up by delinquencies in the energy sector. Banks in the city-state have propped up profits by running down bad debt provisions, but that leaves them increasingly vulnerable.
Hadas: How the liberal economy got lost 13 Feb 2017 As President Trump puts his promises on trade and migration into noxious practice, cowed elites are debating how their ideas failed. The big causes are forgotten history, ideological hubris, bad finance and excessive self-interest. Fixing those flaws is essential to any revival.
Vodafone’s Indian deal has an elephant in the room 13 Feb 2017 Tycoon Kumar Mangalam Birla wants to combine his Idea Cellular with Vodafone's local arm, in a merger "based on equal rights". Given a jump in the shares since announcing it was in talks, Idea could have half the $25 bln giant – but Birla would still be reduced to a bit part.
PCCW sells family silver, chases something shinier 13 Feb 2017 Hong Kong tycoon Richard Li's conglomerate is selling a $1 bln stake in its telecoms unit to fund new ventures in TV and IT services. While PCCW will still control its biggest asset, it will recycle cash into a risky, unproven business. Investors are right to be sceptical.
North Korea defies Trump’s art of the deal 13 Feb 2017 The U.S. president has softened potential conflicts with Japan and China. Pyongyang, which fired a missile on Sunday, is more troublesome. Unlike its neighbours the hermit state offers little room for common ground on jobs or trade. Trump's business savvy will be of little use.
Trump’s China retreat heralds more rational clash 10 Feb 2017 The U.S. president has backed away from reckless threats by reaffirming the "One China" policy. Fights over trade and currency issues are still in prospect. But the People's Republic – and the world – can take some comfort from Trump's belated embrace of conventional diplomacy.
Seoul’s wavering on shipping bodes ill for reform 10 Feb 2017 A court will declare Hanjin Shipping bankrupt next week. The container line sunk amid an industry slump. But while Seoul was merciless here, it kept Hanjin's closest rival afloat. The flip-flop shows policymakers are struggling to take tough but economically rational decisions.
Blue-chip exodus is awkward for Singapore 10 Feb 2017 The $9 bln Global Logistic Properties could join a flurry of companies going private in the Lion City. Low valuations and poor liquidity are a problem. If even Singapore's state-backed giants are falling out of love with the exchange, luring bumper IPOs seems fantastical.
Apple sows seeds for India iPhone awakening 10 Feb 2017 The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.
Viewsroom: Keeping banks in the sin bin 9 Feb 2017 President Trump wants to "do a number" on post-crisis financial reforms, but overturning them will be tough. Paris emerges as the top city for financial types after Brexit. Plus, why a legal brief filed by Google and others against Trump’s immigration ban is such an unusual move.
Asahi plays pass-the-hangover with Tsingtao stake 9 Feb 2017 The Japanese brewer is looking to offload a 20 pct holding in its Chinese peer, worth about $1.2 bln. Carlsberg is reportedly circling. Asahi achieved little and has made mediocre returns. At least the next owner can avoid its biggest mistake – paying a whopping great premium.
Ant shows off its might with $3 bln debt round 9 Feb 2017 Banks are lining up to help the Chinese fintech giant raise cash. Taking on U.S. dollar debt when China is tightening capital controls is sensible. The Alibaba affiliate can also flex its muscles with bankers and sound out the market before a much-anticipated IPO.
China bankers: an asset with diminishing returns 9 Feb 2017 Mainland rainmakers are becoming a headache. Global banks still need them to navigate China’s corporate waters. But sudden disappearances of corporate and financial tycoons make high-flying staff a risky commodity. Compliance costs are rising, while their potential is shrinking.
Videos revive China’s forgotten social networks 9 Feb 2017 Weibo has tapped a craze for live broadcasts of things like the U.S. Super Bowl and celebrities eating fruit. Ad dollars are pushing up valuations: Weibo's price-to-earnings multiple is higher than Twitter's. Neglected apps benefit, until fickle users move to the next thing.
Chinese FX reserve crosses risky line in sand 8 Feb 2017 The country's foreign currency stash fell below $3 tln in January, the lowest in nearly 6 years. That matters less than the line that might get crossed next: the yuan weakening past 7 per dollar. That would mean eating into the reserves still further, or risking U.S. wrath.
Yum China’s soggy pizza is a turnoff for investors 8 Feb 2017 The group behind KFC in China turned in a decent debut set of earnings as a public company. But same-store sales were flat, undershooting rivals McDonald's and Starbucks, due to weakness at Pizza Hut. Yum China needs to serve up better growth to win a higher valuation.
Chinese countryside breeds new financial risks 8 Feb 2017 Guangzhou Rural Commercial Bank is eyeing a $1.5 bln Hong Kong IPO. Loan quality raises red flags. One problem is the group is expanding fast outside its main market through partially owned units that serve small-town borrowers. That increases the risk of a build-up in bad debt.
Crisis anniversary offers $30 trln sanity check 7 Feb 2017 That's one estimate of the cost of the financial meltdown that started 10 years ago with HSBC's $1.8 bln subprime mortgage loss. With talk of a regulatory rollback in the air, the anniversary offers a timely reminder that exuberance and loose standards can cause painful damage.