Aussie gambling deal faces better odds as takeover 19 Oct 2016 Betting group Tabcorp is buying larger rival Tatts for almost $5 bln in stock and cash. The set-up makes more sense than last year's aborted merger, and the combined group would be better placed to take on foreign bookies. The real gamble is with antitrust regulators.
Indian online-travel M&A could use a roadmap 19 Oct 2016 Shares in U.S. listed MakeMyTrip jumped 50 pct on the back of a $1.5 bln merger with ibibo, a private rival backed by Naspers. That is despite the pair offering almost no details. It shows how desperate investors are to see a reduction in competition and a path to profitability.
UK watchdog falls for its own league-table spin 18 Oct 2016 The Financial Conduct Authority has identified some dodgy IPO practices. But after 18 months of work, it's lacking concrete solutions while still griping about how banks use league tables. The carefully tailored rankings fool no one, and the FCA should focus its effort elsewhere.
Trump spins halfway decent revolving-door ideas 18 Oct 2016 The White House hopeful wants tougher rules on lobbying by government officials, including longer wait times. Trump's plan, however, skips the issue of foxes guarding henhouses. There's also the matter of "ethics reform," however sensible, from a candidate so feckless with facts.
Alibaba courier aims high with New York IPO 18 Oct 2016 Chinese logistics group ZTO Express wants to raise up to $1.3 bln through a New York flotation. Sales are soaring, thanks to the e-commerce boom. But rival couriers are also scaling up. ZTO lacks the market dominance or margins to justify an Alibaba-style premium valuation.
Perks power Japan’s $4 bln rail listing 18 Oct 2016 Rail operator JR Kyushu has bagged a top price for its Tokyo debut. As in the selloff of Japan Post, familiarity and fat dividends help. So does a local tradition of non-cash goodies for retail investors, which upgrades their effective yield here from standard to first-class.
Mexico puts climate finance on emerging-market map 17 Oct 2016 Some $50 trln globally is needed for clean-energy projects to meet the Paris accord's goals. Developing countries often have a harder time than the West finding funding. But recent successful deals in Mexico, fueled in part by investors' hunt for yield, suggest that's changing.
Peru lights less populist path for Latin America 17 Oct 2016 New President Pedro Pablo Kuczynski combines business nous with patrician polish, a mashup of Argentina's and Brazil's leaders. Unlike them, though, he inherited a copper-fueled economy that leads the region in growth, giving him leeway for reforms and the fight against poverty.
Broken IPO market calls for tax reboot 17 Oct 2016 The number and value of new listings globally are down almost a fifth and a third respectively this year, after falling for decades. The low-growth, low-rate environment is partly to blame. Putting equities and bonds on a more equal tax footing would help redress the balance.
Bernie Sanders tweets new market-pricing reality 17 Oct 2016 The U.S. senator sent shares of leukemia drug maker Ariad tumbling after he knocked its price increases. Statements by UK Prime Minister Theresa May and other officials also have affected a range of valuations. Investors will need to adjust to this direct kind of political risk.
Mistrust in elections harder to fix than markets 17 Oct 2016 Donald Trump is claiming that the U.S. presidential vote will be rigged. History shows almost no fraud, but some of his supporters are buying it. Fears of market manipulation can be countered with rule tweaks and more active watchdogs. Restoring trust in ballots may be tougher.
UK property didn’t get the “hard Brexit” memo 17 Oct 2016 Real estate funds that froze after the UK vote are opening, and prices have stabilised. Yet rents could collapse if Britain makes a clean break with the EU, and foreign investors may not ride to the rescue. Property stocks pricing in 20-percent price falls aren't cheap.
Dig at BHP heralds taxing times for Aussie miners 17 Oct 2016 The company is under renewed attack over allegations it channelled profits through Singapore to trim its tax bill during the resource boom. A fiery rant by Australia's former treasurer, weak public finances, and a recovery in commodity prices will keep miners in the spotlight.
Crown highlights risks of courting Chinese VIPs 17 Oct 2016 Shares in Crown Resorts crashed after China detained some staff. Investors had cheered moves by Australia's top casino company to distance itself from Macau. But this episode shows Chinese gamblers, and official attitudes, are crucial to gambling groups across the region.
Saudi Arabia’s tech bet is bold but necessary 14 Oct 2016 The kingdom's plan for a $100 bln tech fund with Japan's SoftBank is a risk worth taking. Saudi's biggest listed investments have created middling returns, and it needs to replace oil as its major engine. Prince Mohammed bin Salman seems to be applying some millennial thinking.
Breakdown: The dismal art of forecasting sterling 14 Oct 2016 Most economists agree the pound has further to fall, but there is a wide range of views on how far. Long-term forecasts are an unfortunate necessity, but they are stab in the dark when it comes to a currency that is more in the thrall of politics than economics.
SoftBank and Saudi pump fresh air into tech bubble 14 Oct 2016 Masayoshi Son's group and Saudi Arabia are plotting a $100 bln tech fund. That incredible sum could finance some huge LBOs, or inflate startup valuations again just as other investors start to fatigue. Even if Son casts his net very wide, it will be hard to stay disciplined.
Essar sale points to no taboos in bad-debt fight 14 Oct 2016 A $12 bln-plus sale of Essar Oil to the U.S. sanctioned-Rosneft and others would be a milestone in India's effort to clean up balance sheets. Not long ago it was hard to imagine banks could turn the screws on tycoons like the Ruia brothers. Lenders have a rare reason to cheer.
Review: India’s flashier tycoons are best avoided 14 Oct 2016 In a country full of colourful businessmen, shareholders gain most from backing introverts. Saurabh Mukherjea’s "The Unusual Billionaires" singles out those behind the 1 pct of Indian firms that generate superior returns. It's a reminder that crony capitalism no longer pays.
Viewsroom: Samsung’s fiery future 13 Oct 2016 Cancelling production of its self-combusting Note 7 smartphone puts the company's reputation as well as $17 bln or more at risk. Cities, businesses and investors are putting Trump and Clinton to shame on climate change. Plus: Brexit politics get shaken up by the pound's decline.