China and U.S. prepare for micro-managed trade war 4 May 2018 Treasury Secretary Steven Mnuchin has delivered a list of tough demands to the Chinese government, including a $200 bln trade deficit cut, the WSJ reported. Beijing rewarmed its offer of lower tariffs and increased imports. Neither side gave an inch, so things will get messy.
AIA sends mixed signals on growth 4 May 2018 New business at the $107 bln insurer rose 20 pct in the first quarter. That’s sluggish by AIA’s standards, hinting at the challenges of sustaining growth rates at ever-increasing scale. On the plus side, there are signs the group could reduce its heavy dependence on China.
Asia’s hunger for cheap energy will sustain coal 4 May 2018 The era of steam coal is not over yet. Banks don’t want to finance it, big miners are dropping it, and China is migrating to cleaner natural gas. But the shift to green fuels is slow, and regional demand for electricity is outpacing it. That will keep prices lofty.
U.S.-China trade gap adds spice to tariff talks 3 May 2018 The American trade deficit fell in March, yet the goods gap with China, $106 bln this year so far, keeps widening. That gives Steven Mnuchin more ammunition for meetings in Beijing. Threats of levies on imported goods may, more usefully, help prise open China’s service markets.
Peppa Pig can survive Chinese censor’s cleaver 3 May 2018 Video-sharing app Douyin chopped the cartoon swine after it appeared in “subversive” videos posted by users. The ban does not directly hurt owner Entertainment One’s revenue. Still, it’s a reminder that even the most innocent media characters can fall out of official favour.
Chinese handset-maker Xiaomi wins tech IPO bingo 3 May 2018 Seeking a $100 bln valuation in a Hong Kong debut, it insists it's "more than a hardware company." Xiaomi also packed the prospectus with buzzwords like platform, cloud, big data and AI. There's super-voting stock and an internal VC fund of sorts, too. This one really has it all.
Chinese telco investors have rare reason to cheer 2 May 2018 U.S. probes into ZTE and Huawei might delay a 5G rollout plan. That would be a relief for China Mobile and peers that will foot the bill. Onerous directives from Beijing mean operators suffer a huge discount to global peers like Vodafone. A pause will allow profit to accumulate.
Tencent outshines Spotify in IPO sing-off 2 May 2018 The Chinese giant wants to list its music-streaming arm at a $25 bln-plus market value, similar to the unit's Swedish peer. As Spotify fights rising licensing fees, Tencent's challenge is simple: convince more users to pay. If it can, its heft in China makes it the smarter bet.
Mooch returns to place that’ll have him: Wall St 30 Apr 2018 Anthony Scaramucci is heading back to SkyBridge, the investment firm he founded, after HNA dropped its bid. The Chinese conglomerate’s rationale for buying it was more absurd than his chaotic turn as a White House flack. With HNA out and the Mooch back in, order is restored.
TPG’s Baidu deal plays with Chinese fintech fire 30 Apr 2018 The U.S. buyout shop is leading a $1 bln investment in the search giant's payments, lending and wealth management business. It frees up resources for Baidu and helps it focus. For TPG's group, it's a big gamble on a laggard in a cutthroat industry facing tougher oversight.
China’s Ping An peacocks for its tech feathers 30 Apr 2018 The finance giant has raised over $1 bln in an IPO of its medical arm, says IFR, and three more spinoffs are in the works. Ping An wants to be seen as a tech titan, not a lumbering insurer. That’s a stretch but showing off its new economy divisions is a smart and valuable move.
T-Mobile and Sprint pitch America First 5G deal 29 Apr 2018 The Nos. 3 and 4 mobile operators agreed to an audacious $146 bln merger. Antitrust concerns stymied earlier talks, but T-Mobile US boss John Legere said the deal would create rural jobs and keep the country ahead of China. That’s likely to appeal to Donald Trump’s regulators.
The Exchange: China’s one-man revolution 27 Apr 2018 President Xi Jinping wants to make China great again – but his “third revolution” has brought censorship, protectionism and military standoffs. China scholar Elizabeth Economy’s new book explains Xi’s muscular new approach, and offers suggestions on how the West should respond.
Baidu’s revival adds speed to China’s AI race 26 Apr 2018 Quarterly earnings at China’s search giant topped $1 bln, trouncing expectations. Sales at its listed video arm, iQiyi, also jumped. Baidu may have been eclipsed by rivals like Alibaba, yet progress in autonomous driving is giving it an early lead in tech's next battlefield.
Diminished Deutsche Bank resembles cut-price BNP 26 Apr 2018 The German lender signalled the end of its global investment banking ambitions with cuts in the U.S. and Asia. New boss Christian Sewing plans to focus on Europe and more stable revenue sources. But low profitability hinders his plan to mimic continental rivals like BNP Paribas.
U.S. squeeze could rally China tech behind Beijing 26 Apr 2018 Like rival ZTE, Chinese telecoms equipment giant Huawei could also be in trouble over sanctions. The duo’s woes show how vital U.S. parts are to global supply chains. Beijing, which has long dreamt of self-sufficiency in technology, could enlist help from the likes of Alibaba.
China’s bad banks go on, even if bad bankers don’t 26 Apr 2018 Huarong is humbled as graft busters oust its chairman and confiscate passports. The company is part of an aging group that evaded obsolescence by turning into distressed asset investors. With $270 bln of bank loans gone sour, Beijing needs to keep bad banks around.
Xiaomi puts collective spin on tech IPO vows 25 Apr 2018 The Chinese firm says if net margins on its phones and gadgets ever top 5 pct, users will keep the spoils. Ahead of an IPO at a mooted value of up to $100 bln, this is a stunt worthy of Silicon Valley. It tells investors to focus on apps, and consumers that Xiaomi has their back.
Viewsroom: America puts ZTE in the sin bin 25 Apr 2018 The Trump administration’s decision to ban U.S. companies from selling to the Chinese telecom giant is seriously hurting the company's business. And there’s no easy plan B for ZTE. Also: China has a new way to measure unemployment. Should investors take it seriously?
Didi floors its way to a public listing 24 Apr 2018 The Chinese ride-hailing outfit may be steering toward an $80 bln IPO this year as Uber finds its way. Didi also is moving into Mexico, adding food delivery and exploring custom cars with the likes of Renault. It could be a bid to race to opening Hong Kong and Shanghai markets.