Cairn spells out cost of India’s “tax terrorism” 13 Jul 2016 The UK energy group has asked an international arbitration panel for at least $1 bln in compensation from New Delhi. That is the potential cost of Narendra Modi's failure to end retrospective tax claims. It would have been cheaper for the prime minister to honour his pledge.
Prognosis is good for China’s healthcare market 13 Jul 2016 Drugmaker and pharmacist CR Pharma is targeting a $1 bln-plus Hong Kong flotation. Healthcare offers investors an antidote to the slow growth that plagues much of China's old economy, since a richer, older country will need more and more drugs. Expect other big deals to follow.
AMC-Odeon deal is both trailer and closing credits 12 Jul 2016 The U.S. cinema chain is buying its European peer for $1.2 bln. The deal ends Odeon's epic stint in private equity hands. It's a further sign of the global ambitions of Wanda, AMC's Chinese backer. And it could be the first of many post-Brexit deals by dollar-based buyers.
PRC legal setback reaches beyond “nine-dash line” 12 Jul 2016 A tribunal rejected sweeping claims over the South China Sea. Beijing refuses to recognise the court's jurisdiction. That means clashes will go on. It also casts doubt on China's respect for other international rules - and undercuts more positive moves to project economic power.
Positive earnings surprise marks peak Daimler 12 Jul 2016 The German carmaker performed much better in the second quarter than analysts had expected, beating operating profit forecasts by more than 5 percent. Unfortunately, it could be Daimler’s last good news for a while. A Brexit-related slump will dent car sales in Europe.
Alibaba highlights hurdles in Russia’s pivot east 12 Jul 2016 Moscow wants closer economic ties with China, rather than dealing with an unfriendly West. But Russia's poor business climate makes life hard for Chinese companies, although they are used to draconian rules at home. Even e-commerce giant Alibaba has only made modest inroads.
CDB exposes Hong Kong’s make-believe IPO market 12 Jul 2016 China Development Bank's leasing arm sold most of its offering to friendly backers ahead of the listing. The shares promptly slumped. The fiasco reveals a harder-to-fix problem: many Chinese issuers and investors have little interest in making a genuine public market.
Pokemon GO hints mixed reality beats virtual kind 11 Jul 2016 The mobile game where users capture imaginary creatures in the real world is a smash. Within a week of launch GO may have more users than Twitter. Entirely computer-simulated worlds get the attention, but overlaying the digital on the physical may be the disruptive killer app.
Nintendo’s big Pokemon boost depends on Asia 11 Jul 2016 Investors have added $7.5 bln to the Japanese company's market value after its Pokemon GO mobile game proved a smash hit in the United States. Conquering Japan is the next challenge. It all bodes well for transferring Nintendo characters like Super Mario onto mobile devices.
Japan election win no excuse to sideline Abenomics 11 Jul 2016 Prime Minister Shinzo Abe's coalition won a landslide victory in the upper house, a striking result as voters elsewhere reject established parties. The risk is that Abe uses the mandate to remove constitutional limits on the military, rather than focusing on economic reforms.
Wal-Mart learns limits of divide and rule in China 11 Jul 2016 The U.S. giant's Chinese employees used social media to co-ordinate nationwide strikes. That will make it harder to cut cosy deals with local governments. Telecom giant China Unicom has also faced cross-country protests. But foreign firms tend to enjoy less official protection.
China’s factories gain from march of the sew-bots 11 Jul 2016 Millions of jobs across Southeast Asia are at risk from wider use of automation, a new report has warned. The surprising beneficiary might be China. Robots could add to its shrinking workforce, while its network of suppliers and ports are a strength the rest of Asia can’t match.
Temasek’s goals are bold for a low-yield world 8 Jul 2016 The $180 bln Singaporean investor just suffered its first down year since the financial crisis. Still, it beat benchmarks, and some key holdings have since rebounded. However, Temasek is still targeting a feisty 8 pct annual return. That could skew future investment decisions.
Bank bill mess is symptom of China cash crunch 8 Jul 2016 A Bank of Ningbo employee mishandled short-term bills worth 3.2 bln yuan ($479 mln). It's the latest scandal to hit China's weakly regulated commercial paper market. Yet as long as companies keep delaying payments to suppliers, demand for cash substitutes will remain strong.
Vanke battle is test of China’s shareholder rules 7 Jul 2016 The country's top property developer is fighting with major holder Baoneng. The spat has produced a $7 bln deal, a motion to dismiss the board, and suggestions big stakeholders are colluding. The outcome will show whether China's public markets are up to protecting investors.
Yuan’s stealthy slide makes for cooler summer 7 Jul 2016 China's currency is falling against the U.S. dollar and other currencies again. Unlike last year, though, local and global investors seem less worried. Chinese companies have paid off a lot of foreign debt. More transparent management by the central bank has also calmed nerves.
Chinese investment banks play in own M&A league 6 Jul 2016 The likes of CICC and CITIC stormed up the advisory rankings in the first half, closing in on global rivals. A $120 bln-plus blitz of cross-border Chinese deals largely explains their rise. It's a market that is mostly off-limits to Western banks. Fees are probably skinnier too.
CR Beer share sale helps Snow go down more easily 6 Jul 2016 The Hong Kong-listed brewer got a great price from AB InBev for the remaining 49 pct of China's top beer brand. Now it is raising $1.2 bln in a rights issue. With the purchase from ABI on track to close soon, and CR Beer's shares performing well, raising equity makes sense.
China’s new GDP formula encourages creative waste 6 Jul 2016 Including R&D spending in output calculations makes the economy look bigger. But worries about creative accounting miss the point. The real concern is that the move gives local officials an extra incentive to finance empty incubators, vapid patent mills and me-too tech startups.
China’s giant savings bank not as safe as it seems 6 Jul 2016 One in three Chinese citizens has money in Postal Savings Bank of China. It has fewer loans to bloated state firms and fewer bad debts than rivals. But big holdings of bonds issued by other arms of the Chinese state – and increased dabbling in shadow finance – still pose risks.