Beijing seeks applicants for Hong Kong’s worst job 12 Dec 2016 Special Administrative Region seeks competent and charismatic chief executive. Goals: reassure a rattled finance industry, tame crazed property prices and make peace with a protest movement. And somehow not look too much like Beijing's agent. Anyone?
Australian banks can gain from losing insurance 12 Dec 2016 ANZ wants to sell its $3.3 bln life insurance and wealth management unit. Good idea: insurance is a burdensome sideline given today's tough rules on bank capital. Rival NAB has already exited, and Australia's other two big banks would benefit from following suit.
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
Japan pays top price for Big Banana 9 Dec 2016 Sumitomo is buying Dublin-based Fyffes for 751 million euros. A 50 percent premium is expensive for the humble fruit, especially with no major banana boom on the way. Access to more volumes and markets gives the Japanese group agility in responding to global demand.
Breakdown: Park impeachment leaves Korea in limbo 9 Dec 2016 The National Assembly ousted President Park Geun-hye amid a corruption scandal. Though politicians swiftly made the historic move, clouds will still linger over the Korean economy and markets. A court can shoot down the bill after a lengthy review. Overseas risks also abound.
China bond market could use some foreign insight 9 Dec 2016 Regulators may allow foreign ratings agencies into the onshore market. That might comfort overseas investors enough to persuade index compilers to include Chinese bonds. The trick will be stimulating competition in a market twisted by government guarantees.
China cracks capital whip on Macau ATMs 9 Dec 2016 The government reportedly halved the cash tourists can withdraw using UnionPay cards in the gambling mecca. That hammered casino operator stocks and may derail the island's economic recovery. It also illustrates the utility of a debit card monopoly in stemming capital flight.
Abe is biggest winner from Japan’s GDP overhaul 9 Dec 2016 Adopting UN standards makes the economy look 6 pct bigger. That does nothing to boost growth, dynamism, or inflation. But it does make Premier Shinzo Abe's goal of building a $5.2 trln economy more achievable. It also highlights how Japan is underplaying its research prowess.
China will show Trump more carrot than stick 9 Dec 2016 The People's Republic likes to test out new U.S. presidents. Its response to the TV tycoon’s early tantrums, however, hints at a more measured approach. China will try to avoid provoking Trump on currency and military issues, but take a harder line on investment and trade.
U.S. scandal is blot on China’s educational sector 9 Dec 2016 Shares of the $7 bln New Oriental have fallen 11 pct since Reuters reported allegations that staff helped applicants cheat to get into U.S. colleges. The claims are dismaying. But the financial fallout should be limited. Investing in Chinese education remains a first-class idea.
China gets a good cop as Trump’s primary emissary 8 Dec 2016 The president-elect mollified Beijing with his ambassador pick. The selection of Iowa Governor Terry Branstad, who has personal connections with Xi Jinping, calms waters troubled by Trump's tough talk. As other hardliners are brought in, Branstad will need to pack a surfboard.
SoftBank’s U.S. swoop could net Symantec or Splunk 8 Dec 2016 The Japanese conglomerate is amassing a $100 bln war chest with Saudi backing, and is committing half that much to America. Masayoshi Son can make huge bets on emerging tech firms. Listed targets could include Symantec for cyber security, Splunk for big data, or even Twitter.
China is still firmly on the menu for McDonald’s 8 Dec 2016 The U.S. burger giant is nearing a $2 bln sale of its local unit to an investment consortium. Viewing this as a simple retreat is tempting but misguided. As elsewhere, franchising is a better business than owning and operating stores. A big Chinese partner brings myriad benefits.
Average Chinese Zhou is not an FX outflow threat 8 Dec 2016 China's FX reserves fell $69 bln in November as corporate capital flows out of China. Some worry ordinary Chinese will be next, mobbing banks to convert yuan to dollars when their quota resets in January. Officials need not over-react. Zhou is happy with his yuan in the bank.
China regulator has healthy fear of goblin raids 8 Dec 2016 The country's top stock regulator startled investors by ranting against "barbarians" and "goblins". It's not just superstition: he's worried about insurers using premiums to fund corporate raids. Plenty of Chinese boardrooms could use a shake-up, but not by ghoulish speculators.
India’s central bank faces race against time 7 Dec 2016 One month after a dramatic banknote recall the economy remains chronically short of cash. Leaving official interest rates unchanged will make little difference. But any prolonged delay in circulating new notes could see social unrest derail India’s anti-corruption campaign.
SoftBank’s $50 bln U.S. pledge is the easy bit 7 Dec 2016 The Japanese group is raising a tech fund twice that size, so boss Masa Son's promise to Donald Trump looks doable. It can also curry favour for his longed-for merger of SoftBank's Sprint and T-Mobile. But creating 50,000 jobs in the thinly staffed tech industry won't come easy.
Fosun’s $3 bln U.S. sale is an orderly retreat 6 Dec 2016 Selling U.S. insurer Ironshore is a welcome sign of caution from one of China's most aggressive dealmakers. The deal will shore up Fosun's balance sheet and sharpen its focus on emerging markets. The U.S. will only become tougher for Chinese firms to navigate.
Singapore stresses under a wealth of worries 6 Dec 2016 Morale is lousy in the city-state. The trade-reliant nation is heading for a recession and China is flexing its muscles. Singapore's strategic direction and its outsize influence on the global stage are both in question. There are no easy fixes to restore the Lion City's roar.
Li Ka-shing risks second Aussie rebuff with Duet 5 Dec 2016 The Hong Kong tycoon is taking another shot at buying Australian energy assets, with a $5.4 bln offer for Duet. For Li's CKI, it is a sensible, if pricey, move. But the state could well block this deal on security grounds, just as it stopped CKI buying a power grid months ago.