Powerful owners hobble Asia’s governance reform 29 Sep 2016 Asian corporate governance is improving despite frequent scandals, according to a review, which goes on to call on institutional investors to speak up more. Fair enough, but majority owners can still bully outsiders so long as the latter lack say over independent directors.
Japan has most to lose from global trade backlash 26 Sep 2016 The country is begging America to ratify the TPP trade pact and urging Britain to handle Brexit carefully. The desperate pleas reflect Japan's outsized reliance on international trade. TPP also helps Prime Minister Shinzo Abe shake up the domestic economy, especially in farming.
Viewsroom: Apple’s driving ambition 23 Sep 2016 The iPhone maker’s desire to enter the auto market could benefit from taking a stake in Elon Musk’s Tesla. Recent actions by the BOJ may help kickstart the Japanese economy. And what it means that hedge-fund manager Leon Cooperman is fighting the SEC rather than settling.
Hadas: Central banks play with monetary absurdity 23 Sep 2016 Monetary authorities have taken recourse in increasingly empty promises. The Bank of Japan's Haruhiko Kuroda has taken this verbal drama to a new and ultimately dangerous level. Central banks could rely on deeds, not words, if their tools and targets were more realistic.
BOJ buys time and friends with yield-based reboot 21 Sep 2016 The Bank of Japan has ditched its money-printing goals, pledging instead to keep 10-year interest rates at zero until inflation exceeds 2 pct. The central bank’s latest overhaul means it is less likely to run short of debt to buy, and eases the financial sector’s pain.
Asian investment banking is a money pit 20 Sep 2016 Fees from underwriting and deals are up 8 pct this year after a poor start. But only a few big foreign houses are profitable. Fierce competition, global and regional, keeps fees down. Meanwhile, big-ticket Chinese business goes to Chinese firms. It creates the conditions for more banks to retreat.
Government bonds signal confusion, not cheer 19 Sep 2016 Yields on long-term sovereign debt have perked up across the developed world. Normally that's a sign of optimism. Yet borrowing costs remain ultra-low. The upward drift most likely reflects uncertainty about central bank policy and worries about the effects of negative rates.
Scarce bonds and bank pain limit BOJ’s next move 19 Sep 2016 The Bank of Japan faces a conundrum in its battle to revive inflation. It can’t keep buying $800 bln of bonds a year for much longer, but negative rates are deeply unpopular. This week’s big policy review might require the BOJ to make other concessions to the financial industry.
Mitsubishi deal is inconvenient for new-look Japan 16 Sep 2016 The trading house will offer $1.4 bln to lift its stake in convenience-store chain Lawson to 50 pct from 34 pct. The price isn't great for minority investors, and the deal turns another public company into a listed corporate subsidiary. That sits oddly with Japan's reform drive.
Renesas programs model outbound Japan deal 13 Sep 2016 The world's No. 3 chipmaker has agreed to buy U.S. peer Intersil for $3.2 bln. Unusually for a Japanese buyer, Renesas has large, clear synergy targets. These are mostly based on higher sales but if achieved, would more than cover the deal's near-$1 bln premium.
Mario takes Nintendo up a level in mobile gaming 8 Sep 2016 Nintendo unexpectedly unveiled a Super Mario game at Apple's new phone launch. Following Pokemon's wild success, this confirms the Japanese group is no longer dragging its feet on reform and is ready to use top characters on mobile. It boosts the case for the new-look Nintendo.
Rakuten jig highlights Japan’s warped benchmark 7 Sep 2016 Shares of the shopping website leapt on news it would join the Nikkei 225. It shows the power of an arbitrary index weighted by share price instead of fundamentals like size or free float. The Bank of Japan's $60 bln-a-year push into index funds will only amplify the distortion.
DoCoMo spat adds odd twist to India scare stories 6 Sep 2016 The Japanese telco is struggling to enforce a London arbitration award ordering Tata Sons to pay it $1.2 bln. Tata says it wants to pay. India refuses to approve. Despite a slew of reforms, high-profile legacy disputes with foreign firms hurt the idea India is open for business.
Bad finance: Japan Inc’s problem treasury shares 31 Aug 2016 Canon, Fujifilm and other blue-chips own lots of their own stock. Unnoticed, that can add phantom billions to valuations. Treasury shares can also bias bosses towards equity-heavy acquisitions or other deals that dilute shareholders. They should be cancelled, not held in limbo.
Tokyo’s analysts outperform on a bad metric 30 Aug 2016 Sell-side researchers everywhere are under pressure to be kind to companies. Yet Japan stands out for the uniformity of opinions, a Breakingviews analysis shows. More than half of big stocks in the country don't have a single negative rating. No wonder short-sellers are circling.
Intersil would be a high-octane deal for Renesas 23 Aug 2016 Buying the U.S. chipmaker would better position Renesas for the rise of the smart car. But a mooted $3 bln price tag for the power management specialist sounds high, even if Intersil is half-way through a turnaround. Renesas is steering itself towards a lacklustre return.
Emperor makes worrying emblem for ageing Japan 8 Aug 2016 Japan's 82-year-old Emperor Akihito suggests he might want to step down. His situation is unique but his people are greying rapidly too. That shift is shaping everything from workplace practices to monetary policy. An ageing world will need to watch Japan's experience closely.
SoftBank takes maverick option on financing 4 Aug 2016 Selling $10 bln of hybrid bonds would build on SoftBank's cachet with retail investors. It could also help keep headline debt levels in check after the $32 bln bid for ARM. But this is hard to square with boss Masayoshi Son's belief that he knows better than rating agencies.
BOJ does bare minimum for Abenomics reboot 29 Jul 2016 Japan's central bank added just $26 billion of equity funds to its annual asset-buying binge. That is about as little as it could do without disappointing markets or Prime Minster Shinzo Abe. The BOJ is running low on options and probably wants to keep some powder dry.
Japan’s $265 bln spree is deliberately puffed up 28 Jul 2016 Prime Minister Shinzo Abe is touting a huge stimulus package to revitalize his "Abenomics" project. Actual new state spending will be far less. Still, the eye-catching total is designed to boost confidence, shore up his political support, and prod the Bank of Japan into action.