Bangladeshi heist updates notorious robber’s maxim 26 Apr 2016 Willie Sutton held up banks “because that’s where the money is.” After its network was used to try and steal $1 bln of South Asian funds from the New York Fed, SWIFT is warning customers about attacks. Rich governments are as vulnerable as big lenders in the age of cyber hacks.
Confucius say: Don’t confuse Ant with unicorn 26 Apr 2016 The $60 bln implied value of Chinese fintech group Ant Financial suggests PayPal-style innovation on steroids. It’s not so simple, though. The Alibaba affiliate’s fortunes may be tied more closely to the vagaries of PRC state capitalism than to private-sector disruption.
StanChart gets some emerging market relief 26 Apr 2016 The jump in the lender’s shares reflects comfort that business didn’t deteriorate in the first quarter. Recovering commodity prices and receding fears about China help sentiment. This was the stuff CEO Bill Winters can’t really control. Now to address the bits he hopefully can.
Mitsubishi Motors’ VW-style crash is justified 26 Apr 2016 The Japanese carmaker’s value has dropped by $3.4 bln since it admitted fiddling test data. Though uncertainties abound, that reaction doesn’t look excessive. If its cash pile halves, EBITDA drops by a quarter and already-low valuation multiples shrink, the decline is deserved.
Steel woes may dent Tata’s credit aura 26 Apr 2016 Lenders long assumed the unlisted Indian group would ride to the rescue of subsidiaries. Troubles at its European steel unit, which owes $6 bln, are testing that faith. If Tata forces banks to share its pain, other group companies may have to pay more for their $11 bln of debt.
Hong Kong finds Alibaba dealmaking in poor health 26 Apr 2016 Regulators say the e-commerce group’s 2014 investment into its health unit breached takeover rules. Details are scarce and Alibaba does not have to compensate shareholders. Even so, the latest run-in is another reason for Hong Kong investors to be wary of Jack Ma’s company.
Reserve managers take risks at everyone’s peril 25 Apr 2016 Sub-zero rates are forcing those who manage central bank war chests to invest in riskier, less liquid assets, a new survey shows. Venturing out of their comfort zone could make these closely-watched investors twitchier. Bad news given their outsize influence on market sentiment.
Bank of Japan’s boldness risks diminishing returns 25 Apr 2016 Inflation and growth remain moribund despite epic bond-buying and subzero interest rates. One bold move would be for the central bank to step up purchases of exchange-traded funds. That would lift shares and maybe help confidence - but wouldn’t change corporate behaviour much.
Evergrande pays steep price for Chinese listing 25 Apr 2016 China’s second-largest property developer is taking control of a smaller loss-making rival for $554 mln. The main benefit seems to be its target’s Shenzhen listing. With valuations higher at home, expect more Hong Kong-listed groups to seek out mainland investors.
Abu Dhabi fund woe shows perils of mission creep 25 Apr 2016 IPIC strayed far beyond its mandate to invest in oil and gas. In doing so, the Gulf sovereign investor sparked controversies at home and abroad. Its multi-billion dollar tangle with Malaysia’s 1MDB is the latest case of how pairing big ambitions and poor governance can backfire.
SoftBank star just displays usual Valley flaws 22 Apr 2016 Unnamed investors have attacked Nikesh Arora, the Japanese group’s president. It’s true he is paid a lot, networks hard, and has made some punchy bets. So far, so Silicon Valley. Other charges lack bite, while hiding behind a U.S. law firm further weakens the assailants’ case.
Top Chinese travel agent makes an odd diversion 22 Apr 2016 Ctrip is buying a $463 mln stake in China Eastern Airlines, and could yet buy more. Investors in China’s largest web travel agency probably did not expect to own a minority stake in a state carrier. But this may be the only way Ctrip can avoid a damaging boycott by big airlines.
Review: A short tour of Jack Ma’s virtual mansion 22 Apr 2016 An insider’s account provides fresh insights into the origins of China’s most successful entrepreneur. Yet the tale of Ma’s rise reveals little about the inner workings of his e-commerce empire. Outsiders are no closer to disentangling Alibaba’s future from its founder.
Climate deal suffering from serious water shortage 22 Apr 2016 The Paris agreement global leaders are formally signing on Earth Day doesn’t mention water once. But the world’s dirtiest industries are also the thirstiest. Cutting CO2 emissions needs wiser H2O regulation and pricing. The energy sector will be especially vulnerable.
Saudi’s sweet debt deal could rebound on banks 21 Apr 2016 The kingdom is close to its first international debt deal in 25 years to plug a hole in its finances caused by weak oil prices. Vast oil reserves make Saudi debt enticing, but the price slump is changing the game in several ways. And Middle East states have defaulted before.
Investors need help to stop cheap Chinese buyouts 21 Apr 2016 Minority shareholders are upset about a wave of stingy take-private offers from Chinese groups with U.S. listings. But they can’t do much because the firms are domiciled in offshore centres with fewer protections. Investors could find a sympathetic ear in a China-weary Congress.
Breakdown: Why are Chinese bond defaults surging? 21 Apr 2016 More state companies are failing to pay bondholders. This is partly necessity amid an economic slowdown, and partly a useful dose of market discipline. But the withdrawal of government support could spook investors, creating a credit drought.
Mitsubishi is distant second in emissions cheating 20 Apr 2016 Despite tight scrutiny of regulators and environmentalists since “Dieselgate”, it took seven months for another carmaker to get caught manipulating emissions data. For now, the scope of Mitsubishi Motors’ misconduct appears smaller. VW seems really to be in a cheat league of its own.
Lexmark sale to China copies the Lenovo blueprint 20 Apr 2016 Apex Technology and partners are buying the U.S. printer-maker for $3.6 bln including debt. Unlike some of China’s splashy overseas deals, financing and regulators are not big risks, and the price seems fairly sober. Lenovo’s past forays into unloved tech niches offer a guide.
Japan Inc would gain by fixing M&A sights on home 20 Apr 2016 Bosses have been busy buying abroad. But often it makes more sense to consolidate fragmented domestic industries. With Japanese firms under pressure to become better-run and more profitable, a recent string of tie-ups could signal the start of a more investor-friendly deal spree.