U.S. banks less worried by too-big-to-fail stigma 21 Nov 2016 Regulators' annual ranking of systemic lenders shows Citi, Bank of America and Wells Fargo have become riskier, while the likes of HSBC and Barclays have pulled in their horns. The shift implies American stress tests are a bigger constraint on capital ratios than global lists.
Aussie bet on U.S. building boom stacks up 21 Nov 2016 Building materials firm Boral is buying peer U.S. Headwaters for $2.6 bln. Savings easily cover the premium paid. The timing could prove savvy if president-elect Trump delivers an anticipated boost in infrastructure spending and a broader lift to the housing market.
China can’t dodge Asia trade leadership role 21 Nov 2016 Asian nations, dismayed by American disarray on free trade, are warming up to China-backed alternatives to the U.S.-led TPP. Beijing says it doesn't want a "leadership role" in forging new pacts. Given China's recent overtures with its neighbours, that sounds like false humility.
Review: A prophet for the age of endarkenment 18 Nov 2016 John Gray foresaw the Trump era. "Enlightenment's Wake", published in 1995, predicted that grand ideas would be replaced by ethnic and religious conflict, authoritarian regimes and great power rivalries. Still, the newly-relevant book offers some hope for despairing liberals.
Asia’s upstart robo-advisers face self-destruction 18 Nov 2016 Automated investment apps are popping up in the region; tech giants like Alibaba are eying the market too. Low fees make it hard to succeed without deep pockets or a large user base. If the U.S. experience is any precedent, small players are destined for the digital scrap yard.
Bank of Japan gets serious on yield-curve control 18 Nov 2016 The Bank of Japan has put its new framework into practice for the first time, offering to buy unlimited amounts of short-term bonds to shield Japan from rising global yields. The BOJ may end up buying huge amounts to counter a selloff, or underwrite a government spending spree.
JPMorgan payout would put princelings in context 17 Nov 2016 The bank is close to reaching a $250 mln-plus settlement with U.S. authorities over hiring the relatives of Chinese officials. That's relatively small compared to other recent banking fines, suggesting the case wasn't clear-cut. It offers hope for others still under scrutiny.
Harvard’s business dean faces own ethical dilemma 17 Nov 2016 Nitin Nohria basically wrote the book on boardroom ethics. He also sits on the board of Tata, whose governance scandal is rocking India. His link to the saga risks damaging Harvard's brand by suggesting the school's leaders don't practise the values they charge fortunes to teach.
Anti-China report lobs match into Trump powder keg 16 Nov 2016 Congress is being advised to ban any takeovers of U.S. companies by the Middle Kingdom's state-owned firms. The report tars private firms with the same brush and heightens fears of spying and economic warfare. It's easy fodder for the president-elect's populist platform.
JD’s $7 bln spinoff keeps investors in the dark 16 Nov 2016 The Chinese web retailer plans to sell its finance arm to a group of local investors including JD CEO Richard Liu. Offloading the loss-making subsidiary will help margins, but absent more detail on the unit's performance, shareholders can't tell if they will get a good deal.
VW rejigs China partners but keeps hand on wheel 16 Nov 2016 Its Audi unit could move some production from struggling FAW to a joint venture with SAIC, adding firepower to compete with Mercedes Benz. After 30 years in China the Germans need not worry about JV partners becoming rivals, thanks to government coddling and easy profits.
Vodafone can afford Indian troubles 15 Nov 2016 The UK mobile phone giant is growing slowly in Europe with bright spots in Germany and Italy. The key uncertainty is a price war in India, which makes up 12 pct of revenue. Despite a short-term drag, the long-term growth story remains intact.
Chinese copper firm goes off-script in Hollywood 15 Nov 2016 Loss-making Anhui Xinke is buying the studio behind "The Hurt Locker" for $350 mln. It is not the first Chinese acquirer of a U.S. film producer but it might be the most out of place. Betting on pictures for profits to cure the hurt in the bloated metals sector is pure fantasy.
China’s zealous cleantech firms risk burning cash 15 Nov 2016 Chasing $1 billion-plus prizes like Dutch waste-management company Attero might please officials in Beijing. But acquisitions are not the best way to take advantage of green policies at home. Getting the know-how to scale up doesn't require such large, distant investments.
Samsung buys $8 bln shortcut to smart car market 14 Nov 2016 The South Korean group is buying U.S. car component maker Harman in its biggest-ever deal. As cellphone growth slows, Samsung is betting big on "connected" auto technology. Harman's dominant market share and relationships with carmakers should put Samsung at the head of the pack.
ChemChina-Syngenta deal suffering Chinese blight 14 Nov 2016 The Swiss agribusiness group's share price has tumbled, implying a plunge in confidence the $43 bln purchase will happen. The rot seems to be in the PRC, where corporate and political jockeying could prevent needed approval. China Inc will pay a high price if the deal fails.
Cash bet could make or break Modi 14 Nov 2016 The Indian prime minister's huge banknote recall is causing confusion and a backlash. It may slow the economy, too. Beyond the pain of implementation, though, demonetisation could help cut the fiscal deficit and give Narendra Modi funds for big-ticket policies. It's a big gamble.
Alibaba digs itself deeper into a data hole 11 Nov 2016 The Chinese group wants the market to focus less on the sales handled by its websites and more on actual revenue. But it also boasts about doing $5 bln of business in the first hour of Singles' Day, the Chinese answer to Black Friday. The mixed message is confusing for investors.
Ratan Tata lowers the tone for fights to come 11 Nov 2016 A rambling press release from India's top conglomerate attempts to justify Tata Sons' recent sacking of its chairman. The personal and defensive style raises questions about the role of the firm's star-studded board and foreshadows messy struggles over the group's listed units.
China can become a better hedge against U.S. risk 10 Nov 2016 The election of Donald Trump hands Beijing an unprecedented opportunity to boost its influence in Asia at the expense of America's. But China won't reap the full benefit unless it shares its wealth more widely and treats neighbours less like client states and more like partners.