China’s domestic M&A nudge demands due diligence 22 Oct 2019 The securities regulator is making it easier for unprofitable listed companies to restructure by acquisition. As growth slows, using mergers to help fragmented industries consolidate makes sense. Governance risk and weak finances also mean shareholders will have to be on alert.
Aussie fintech runs up move-fast-break-things tab 21 Oct 2019 Like other hot startups, $5 bln buy-now-pay-later outfit Afterpay operates in a grey area. Because it is not covered by credit rules, customers borrow for free. Success is inviting scrutiny; regulatory concerns have just erased over 20% of its value. The harder part has begun.
Aussie engineer tugs too strongly on the flag 17 Oct 2019 A $5 bln oil services company wants the foreign-investment watchdog to stop a Middle Eastern investor from raising its stake. It’s an odd defence. Rules that let suitors creep up on their targets may have pushed WorleyParsons into a corner, but it sets an uncomfortable precedent.
EU’s Broadcom attack is a teaser for larger fights 16 Oct 2019 Antitrust boss Margrethe Vestager is temporarily halting some of the $114 bln chipmaker’s supply deals with customers. That’s a more responsive way to tackle Big Tech’s effect on competition than drawing up rules. The likes of Facebook and Google may soon face similar showdowns.
U.S. hits Turkey where it hurts with bank charges 16 Oct 2019 The Justice Department accused Halkbank of helping evade sanctions against Iran. A big fine would erode the state-owned lender’s already weak capital position. Ankara can act to contain the damage but a ban on shorting bank shares signals the government sees systemic risk.
Hong Kong’s best hope: billionaires’ self-interest 16 Oct 2019 Chief Executive Carrie Lam promised to tackle the severe inequality that has fuelled unrest. Instead, she offered a mish-mash of underwhelming measures. Her political capital shredded, the city’s powerful tycoons could do worse than step in to take matters into their own hands.
Facebook would be wise to just give up on politics 15 Oct 2019 Over the past 90 days, political ads brought in less than 1% of forecast Q3 sales. But after presidential hopeful Elizabeth Warren showed up Facebook’s patchy vetting, they continue to garner way more in the way of negative vibes. Mark Zuckerberg can afford to exit the category.
AMS has tricky route out of M&A cul-de-sac 15 Oct 2019 The Austrian sensor maker has no good options after its failed bid for lighting group Osram. But German regulators have given it a least-bad exit via a sneaky loophole. It’s not perfect but is better than selling down its Osram stock at a loss or ditching its strategic ambitions.
Breakdown: California blackouts ring climate alarm 14 Oct 2019 The most technologically advanced state in the richest country on earth can’t keep the lights on. There’s plenty of blame to go around. California can fix human incompetence, foolish laws and consumer behavior – but these pale beside the challenge of climate change.
U.S.-China trade deal augurs modest peace dividend 14 Oct 2019 Donald Trump says a partial pact with Beijing includes up to $50 bln in agricultural purchases. Key issues like IP theft are up in the air, though. And many companies have already begun the pricey process of upending supply chains. Any spoils of war will fall short of the costs.
Google could buff its browser-privacy blemishes 11 Oct 2019 Chrome’s owner lags both Mozilla’s Firefox and Apple’s Safari in trying to make the web less creepy. The prospect of losing revenue may explain Google’s resistance to blocking certain ad trackers. If more users abandon the web’s most popular browser, Google is likely to act.
Japan displays puzzling signs of hubris 11 Oct 2019 Tokyo wants sharper scrutiny of foreign investment. Like this month’s consumption tax hike, the measure could hurt growth. Little wonder the stock exchange chief calls the latest idea "idiotic". Once again official conservatism threatens to derail a tentative economic recovery.
BHP and shareholders share green lobbying dilemma 11 Oct 2019 Aberdeen Standard and others want the world's largest miner to cut ties with business groups opposing Paris climate goals. BHP is reviewing its memberships, but argues change can be promoted within the industry too. It's a quandary familiar to fossil fuel investors.
Tech firms show usefulness in the face of tragedy 10 Oct 2019 Twitter, Facebook and others worked together to remove footage of a gunman who attacked a German synagogue. Social media is a potential channel for extremism, and Silicon Valley is making amends for past slow responses. This at least helps their claim to be part of the solution.
China surveillance upstarts are better off at home 10 Oct 2019 Goldman Sachs is reviewing its role on Megvii’s Hong Kong IPO after the United States put the Alibaba-backed company on a human rights blacklist. Even if banks don’t cut ties, global funds may steer clear. Domestic markets will be more welcoming to the AI outfit, and its peers.
Global tax war inches towards a fragile peace 9 Oct 2019 The OECD wants companies like Facebook to pay tax partly based on where they make revenue, rather than where profit is declared. It makes sense. But even if countries agree with the idea, national interests mean it will be a long slog before the principle is put into practice.
Deutsche Bank’s new director isn’t worth the fuss 9 Oct 2019 It’s hard to find experienced board members with no conflicts of interest. But the German lender’s latest appointee Juerg Zeltner runs and owns a stake in wealth management rival KBL. That’s unusual even for incestuous European banks. Chairman Paul Achleitner should think again.
Holding: Net neutrality needs the feds, eventually 8 Oct 2019 A U.S. court said the likes of California can require internet service providers to treat all content equally, despite conflicting federal rules. As in areas like antitrust, though, national standards provide crucial clarity. The best states can do is prod Congress to step up.
College football learns to play by market rules 3 Oct 2019 Young U.S. athletes generate $1 bln in revenue for their governing body – yet their rewards are tightly capped. When demand is high and the supply of elite talent low, as in football, something has to give. A new California law is a nod to what other industries realized long ago.
Viewsroom: Mark Zuckerberg is stuck in 2006 3 Oct 2019 That’s when the Facebook CEO rejected Yahoo’s $1 bln takeover bid. Now he uses the decision to justify his grip on control and decisions on data, privacy and the chance of a breakup under a Democratic president. Plus: How a spat over shrubbery almost felled Credit Suisse’s CEO.