Yum China will struggle to get a fancier takeout 29 Aug 2018 The U.S.-listed KFC operator has rejected a buyout bid worth nearly $18 bln from a group led by Hillhouse. The deal already builds in supersized prospects and a hefty debt burden. A sweetened offer, given hints of weaker spending ahead, would be demanding.
China’s bankers have one too many balls in the air 29 Aug 2018 Loan officers at mid-sized lenders are torn between conflicting goals. Banks like $110 bln China Merchants are on the hook to fund infrastructure, cut bad loans and make a profit too. First-half earnings show that's pushing them into riskier consumer credit, even as growth cools.
Opioids and trade war create toxic cocktail 28 Aug 2018 An inflow of lethal fentanyl from China helped America record nearly 72,000 fatal drug overdoses last year. A breakdown of trust over tariffs may make it harder to cooperate over this dangerous import, and fuel unhelpful arguments about whether supply or demand is to blame.
UK-Africa trade is tiny plaster for Brexit wounds 28 Aug 2018 Prime Minister Theresa May hopes deeper ties with the continent will help cushion the blow of leaving the EU. But UK trade with sub-Saharan Africa is less than 3 pct of what it exchanges with Europe. With Nigeria and South Africa in the doldrums, prospects for growth look slim.
Gig economy throws wrench into China labour policy 28 Aug 2018 App-based jobs are becoming controversial in the People's Republic, too. Factory strikes may be waning, but reports of worker protests involving startups like Meituan and Didi are rising. That's leaving Beijing stuck between two priorities: social stability and tech innovation.
China Biologic suffers contaminated infusion 27 Aug 2018 The plasma-products maker rejected two buyout offers, including one worth $3.9 bln led by its former boss, in favour of a dilutive share sale at a discount to both. Investors are stuck with fuzzy maths and poor governance that show why China Biologic would be better off private.
China’s oil majors risk wasting a good trade war 27 Aug 2018 Earnings are gushing at energy giants including $210 bln PetroChina. They are benefitting from Washington’s belligerence, which has driven up crude prices and should open opportunities in Iran. The windfall, though, masks the need for extra investment, cost cuts and other reform.
For a Republican, McCain was a financial maverick 26 Aug 2018 The Arizona senator, who died Saturday, was famous for his independent streak. Last year he helped block the repeal of Obamacare. He refused to toe the party line on big finance, too, often working with Democrats – including on reining Wall Street after the financial crisis.
Mom and pop put a face on U.S. trade folly 24 Aug 2018 Sellers of wedding dresses, lawn sweepers and bike helmets have asked U.S. officials to drop tariffs on $200 bln of Chinese imports. They show how much lower-tech production has moved abroad, taking American jobs, but also how that has created new ones and saved consumers money.
More AWOL China bosses flag unique key-man risks 24 Aug 2018 Casino operator Landing has lost half its market value amid news that its chairman is unreachable. It’s the second such case in three days. Overdependence on top executives continues to plague many Chinese companies, and they’re exposed to hazards uncommon in other markets.
U.S.-China trade talks stumble on biggest block 24 Aug 2018 Mid-level negotiations yielded no breakthroughs as tariffs hit $16 bln of Chinese goods. The United States wants reforms to industrial policy that would fundamentally alter Beijing’s development model, and might even rewire how it runs the economy. It will struggle to deliver.
Babytree’s Hong Kong IPO robs the cradle 24 Aug 2018 The Alibaba-backed Chinese parenting site wants to raise up to $1 bln. Targeting tiger mothers might seem timely, given Beijing’s fertility push. Yet the chat-and-shopping combination is unprofitable after 11 years, and its desired value exceeds the wildest demographic optimism.
Alibaba channels old-school conglomerates 23 Aug 2018 Quarterly sales at the Chinese e-commerce firm soared 61 pct to $12 bln, but earnings were flat compared to a year ago. That's due to investments in cloud computing, supermarkets, video streaming and other bets. Alibaba's unwieldy mix of businesses may merit a valuation discount.
Chinese news app IPO delivers hilarious feed 23 Aug 2018 Tencent-backed Qutoutiao, or "fun headlines", filed to go public in New York hours after raising money privately. The unprofitable outfit pays users to read, lacks important licenses to operate in China, and even rights to its name are shaky. The prospectus befits the business.
Australia’s Huawei ban undercuts “Made in China” 23 Aug 2018 Security and political concerns prompted Canberra to block the telecom titan from backing the country’s 5G network. It’s a setback for Huawei, but also for Beijing. The world-beating national champions it wants to cultivate are increasingly seen as dangerous arms of the state.
Santos doubles down on independence with Quadrant 23 Aug 2018 Fresh from rejecting a $10.8 bln takeover bid, the Australian energy group is buying its Perth peer for $2.2 bln. The move tests a newly healed balance sheet, but investors value Santos equally as predator and prey. It’s a big bet on Quadrant’s new discoveries and the oil price.
Viewsroom: Amazon’s JEDI rebellion 23 Aug 2018 Amazon looks set to win the Pentagon’s $10 bln JEDI cloud contract, but Oracle is fighting back. Plus: Is it time for Airbnb to sell its China business? And should Elon Musk be worried about a Chinese Tesla lookalike listing in New York?
China’s Xiaomi passes first public market test 22 Aug 2018 After a bumpy IPO, the newly listed handset maker delivered better-than-expected maiden results, with quarterly sales up 68 pct to $6.6 bln. Smartphones and gadgets did well at home and abroad. If that growth continues, investors may cut Xiaomi some slack on internet services.
Geely’s cruise-control ride is coming to an end 22 Aug 2018 Volvo's Chinese sister cranked out another solid set of results, with profit up 54 pct to nearly $1 bln. Margins expanded and its domestic market share grew. At nine times expected earnings, Geely fetches a premium to global peers. It’ll have to raise its EV game to justify it.
Chinese beauty app reveals ugly tech reality 22 Aug 2018 Meitu’s dismal results included a fall in revenue and monthly active users. A planned social media makeover for the $2.5 bln photo-editing and smartphone maker also failed to prevent a 17 pct decline in the shares. Stiffer competition and Beijing crackdowns are taking their toll.