Climate-change hopes meet urban reality 10 Oct 2016 Last year's Paris accord just secured enough national signatories to put it into effect. The real battle, though, will be fought by cities, which account for 75 pct of emissions. Many have pledged to act. Success depends on overcoming bureaucracy, tight budgets and ignorance.
Asia’s buyout barons hail “control” era too soon 10 Oct 2016 Minority stake purchases still outweigh full-blown takeovers by private equity firms in Asia. A shift would help an industry flush with funds. But while recent data is encouraging, founders who want to sell and professionals who can run acquired firms are both in short supply.
Hadas: May offers British-style Great Leap Forward 7 Oct 2016 The UK prime minister's "quiet revolution" won't rival Mao Zedong's original in tragedy, but her mix of autocratic politics, nationalistic hope and economic nonsense is eerily reminiscent. A Brexit that offers less free trade and more xenophobia is a recipe for economic decline.
HNA’s $10 bln leasing bet could fly 7 Oct 2016 The acquisitive Chinese group will pay just over one times book value for CIT's aircraft leasing unit. That is decent compared to recent deals. Competition in leasing is fierce, and returns can be low, but HNA's increasingly global reach means it is well-placed to grow.
Chips power Samsung and activist case for change 7 Oct 2016 The tech giant shrugged off the impact of its Note 7 fiasco in its quarterly results, thanks to growth in chips. Yet investors undervalue this and other exciting units based on a near 50 pct discount to the sum of its parts. It boosts Elliott's call for the Lee family to act.
Activist attack gives Samsung cover to restructure 6 Oct 2016 Activist fund Elliott is picking on the South Korean group again. This time it wants Samsung Electronics to split in two and pay a special dividend. Yet the proposal would also strengthen the ruling Lee family's control. Samsung may actually gain by cooperating with Elliott.
Elliott puts Asia Inc on notice 6 Oct 2016 The feisty U.S. hedge fund has done a lot to establish activism in Asia, with a number of big wins. Now it wants a radical restructuring at Samsung. The move cements Elliott's reputation for taking on powerful targets and is a strong incentive for Asia's tycoons to behave better.
Elliott’s Samsung attack may have staying power 5 Oct 2016 The hedge fund wants the electronics giant to restructure and pay a $27 bln special dividend. Foreign activists often do poorly in Asia. But Elliott nearly won a previous battle with the family-run conglomerate. Samsung's flammable smartphone battery exposes a new vulnerability.
Samsung’s biotech bet undergoes first major trial 5 Oct 2016 As smartphone growth slows, Samsung heir Jay Y. Lee is targeting a nascent market for drugs made from living cells. Selling up to $2 bln of shares in the South Korean group's BioLogics unit will test investor appetite for a developing technology and an unfamiliar business model.
Sompo buys $6 bln policy against declining Japan 5 Oct 2016 The Tokyo firm is acquiring U.S.-listed peer Endurance. Japanese insurers' hunger to diversify from a tough home market has sparked a string of big deals, sometimes at crazy prices. A $6.3 bln price tag here looks fairly sane given Endurance's assets and growth prospects.
Rajan’s successor signals new pace at RBI 4 Oct 2016 The Indian central bank’s monetary policy committee, led by new Governor Urjit Patel, has cut rates. There are decent reasons for the unanimous decision. Nonetheless, it will do little to calm those who fear the departure of Raghuram Rajan has made the RBI less independent.
Evergrande finally hits on some sensible M&A 4 Oct 2016 The debt-laden developer plans to swap assets for control of a mainland rival. By acquiring the $1.6 bln Shenzhen Real Estate, Evergrande may win higher valuations onshore. Assuming the overhaul gets past regulators and investors, this makes more sense than other recent deals.
Anbang IPO is high-profile test for global banks 4 Oct 2016 The Chinese owner of the Waldorf Astoria has rocketed from obscurity to hold nearly $300 bln in assets. Now it is eyeing a Hong Kong offering for a key unit. Investment banks must get comfortable with the ownership and operations of a private group that poses many questions.
China couriers muster capital for land grab 4 Oct 2016 ZTO Express has filed to list in New York, the first Chinese courier firm to test U.S. investor appetite for e-commerce logistics plays. Industry revenues are soaring thanks to the online shopping boom, but so are costs. ZTO's healthy margins set it apart from rivals.
Falling inequality hides rich nations’ failings 3 Oct 2016 The gap between the very rich and very poor has fallen since 2008 - even in developed countries. That’s the surprising finding of a new World Bank report. But a different measure shows rich countries are less good at sharing prosperity. Growth is too weak to mask this failure.
Golden Chinese shopping spree will tarnish soon 3 Oct 2016 China's "Golden Week" holiday will see mainland tourists splurging in bazaars from Milan to Macau. Retailers should enjoy it while it lasts. Tax cuts will make shopping at home less painful, and younger Chinese prefer experiences to handbags. That will cap future growth.
India illustrates fraught tax amnesty economics 3 Oct 2016 Citizens have declared cash and assets worth $10 bln. A high penalty means New Delhi will pocket almost as much revenue as Indonesia, where locals have just declared $250 bln in a similar scheme. In the long term, using more carrot and less stick is probably more valuable.
Buying Chinese bonds still bad idea, just less bad 30 Sep 2016 Foreign investors are accelerating plans to increase their holdings of Chinese bonds, a poll shows. The prospect of global index inclusion is likely to push up prices, and yields are attractive. But the fundamentals are still scrambled. This is no place to park the pension.
Li Ka-shing’s banking foray is an odd throwback 30 Sep 2016 The Hong Kong tycoon, his son, and foundations have emerged as a near-3 pct shareholder in the newly listed Postal Savings Bank of China. The indirect stake is worth $1.4 bln. Li has dabbled in banks before. But the "performance-linked notes" suggest he is treading cautiously.
China ties can help Hong Kong catch up in fintech 30 Sep 2016 The city is playing catch-up with Singapore in financial technology. But as a gateway to mainland China, Hong Kong has two big advantages: easy access to a huge market, and proximity to tech giants Alibaba and Tencent. Those benefits should help it close the gap.