Li Ka-shing Duet bid tests Aussie foreign dislike 16 Jan 2017 The Aussie energy firm's board is backing the tycoon's $5.5 bln takeover bid. Duet's stock is trading close to the offer. That suggests investors think the deal will pass and that Canberra's recent chest-thumping against foreign buyers like CKI on security grounds is nuanced.
LeEco’s $2 bln rescue rewards bad habits 16 Jan 2017 Property developer Sunac is ploughing funds worth more than half its market value into the overstretched TVs-to-electric cars group led by billionaire Jia Yueting. The partnership makes Jia's earlier pledge to slow down sound unconvincing, and could lead Sunac astray too.
Sterling crash mystery lacks suspect – and victims 13 Jan 2017 There was no single trigger for the sudden 9 percent drop in the value of the pound on Oct. 7, a committee of central bankers has found. Big banks avoided major losses, and other markets were unaffected. Investors will have to learn to live with sharp but short-lived gyrations.
Trump could shove Iran closer towards China 13 Jan 2017 Secretary of State nominee Rex Tillerson backs a review of Tehran's sanctions deal, echoing harsh words from his president-elect. China has already identified Iran's weak economy as a target for investment. Cementing the trend could chip away at U.S. dominance in the Gulf.
KKR powers ahead with Japan dealmaking 13 Jan 2017 The U.S. buyout firm has offered $1.3 bln for Hitachi's power-tool unit Hitachi Koki, KKR's second Japanese deal in three months. The PE group is winning its long game as Japan Inc. slims down. Hitachi benefits too earning a generous premium selling a business distraction.
China Resources seals neat exit from builder brawl 13 Jan 2017 The $5.4 bln sale of its entire stake in China Vanke to Shenzhen Metro allows the conglomerate to extract itself from a boardroom fight at an attractive price. It looks like the beginning of the end for a spat that has irked regulators. Other shareholders may follow its lead.
Tata’s new chief is good step toward redemption 13 Jan 2017 IT whizz Natarajan Chandrasekaran is the closest thing to an outsider to lead the Indian group; he gives Tata Sons a real shot at fixing thorny governance issues. He can also help his successor at cash cow Tata Consultancy tackle a tough job as the U.S. cools on visas.
Review: Mapping out China’s fast-changing internet 13 Jan 2017 The world's largest mobile economy is powered by an internet with Chinese characteristics, says Winston Ma. His book is an insightful guide to the forces behind the country's thriving tech sector. But it turns a blind eye to challenges faced by outsiders like Facebook and Airbnb.
Regulators try to save fund lemmings from selves 12 Jan 2017 Customers of open-ended investments rely on false promises of liquidity that tend to evaporate in market panics. The Financial Stability Board has some ideas for addressing the ensuing risks. Its ideas are sound, but would be superfluous if fund managers did their jobs.
Hadas: The new autocratic economics is still fuzzy 12 Jan 2017 Muscular leaders have diverging concerns. Oil-dependent Putin does little to promote Russian growth. China’s Xi puts expansion above financial stability, while Turkey’s Erdogan risks the economy for political strength. The common factor is state control, greased with corruption.
Amazon doormat spat reveals nationalist wild card 12 Jan 2017 An Indian minister threatened to rescind visas of Amazon staff unless its Canadian website halted sales of doormats resembling the country's flag. The doormats quickly vanished, but politicians pandering to jingoist Twitter shaming is a real and rising global business risk.
Beijing lobs trade grenade into Trump’s court 11 Jan 2017 China is imposing punitive tariffs on imports of a U.S. animal feed just days before the president-elect takes office. Trump has already talked tough about taxing imports from the Middle Kingdom. Retaliation risks escalating into a trade war that neither side would win.
China bullies South Korea at its own risk 12 Jan 2017 Beijing looks to be exacting economic revenge against Seoul over a U.S. military pact. Sectors riding the "Korean wave" in China, like cosmetics and entertainment, are in the crosshairs. But deep manufacturing ties are harder to break. Excessive harshness would backfire on China.
Market indifference to Samsung swipe unhealthy 11 Jan 2017 Heir Jay Y. Lee is now a suspect in a corruption scandal involving South Korea's president. Yet shares in flagship unit Samsung Electronics comfortably beat an up market. Hardened investors are too used to local company bosses running into trouble – and deftly getting out of it.
Air Products can endure Yingde’s gas tactics 11 Jan 2017 Yingde Gases has answered a bid from its $31 bln U.S. rival with a noxious plan to sell a 10 pct stake via a private placement. It looks like an unfriendly response to an opportunistic move. Air Products' size means it can afford to wade into this messy Chinese boardroom spat.
Ma’s job offer to Trump is no Chinese peace pipe 11 Jan 2017 Alibaba founder Jack Ma met with the U.S. president-elect and pledged to create 1 mln jobs. Trump, well-pleased with this tribute, says he and the Chinese e-commerce tycoon will do "great things" together. There is less to both statements than meets the eye.
Fosun can justify double dip in Portugal 10 Jan 2017 The Chinese investor is upping its stake in lender BCP from 16.7 pct to 30 pct. Fosun is supposed to be deleveraging, and the Portuguese bank still won’t be lavishly capitalised. Still, with BCP trading at 0.2 times book, the Shanghai-based group can argue it is not overpaying.
Bets against Iraq’s OPEC cuts are premature 10 Jan 2017 Traders may have jumped the gun betting Baghdad won’t stick to an output deal. The cartel's second-largest producer has little to gain reneging on the pact and could struggle to maintain record shipments without investment. Higher prices help its cause more than extra barrels.
Alibaba’s new brick-and-mortar bet looks pricey 10 Jan 2017 The Chinese e-commerce giant thinks it can save physical retail. It's offering to take Intime, a struggling operator of mainland malls and department stores, private for $2.6 bln. This is a pricey experiment trying to solve China's traditional shopping woes with tech.
India’s next big experiment could be basic income 10 Jan 2017 A direct cash transfer to citizens could replace a plethora of subsidies and benefits. That would reduce corruption and waste, especially if the handout only goes to the poor. But identifying the worthy will be tough, even with India’s impressive biometric identity database.