Hong Kong opens doors to far-from-super governance 25 Apr 2018 Tech companies with super-voting shares could be trading on the city’s stock market from June. The new rules offer more safeguards than New York, but without the legal redress U.S. investors enjoy. Expect some big listings – and shoddy treatment of minority shareholders.
U.S. sanctions rethink is only partly reassuring 24 Apr 2018 A Treasury decision to delay the effects of sanctions on Rusal and allow it to disentangle itself from Oleg Deripaska has boosted the shares of the Russian group. But it leaves U.S. policy harder to gauge. That doesn’t augur well for next month’s crunch decision on Iran.
Europe tests limits of net neutrality benefits 23 Apr 2018 Countries like Britain and the Netherlands are taking a strict approach to rules on treating internet traffic equally whereas the United States may roll them back. If opponents of net neutrality are right, Europeans will end up with less investment in networks and worse services.
Wesfarmers exposes its conglomerate discount 24 Apr 2018 By opting to spin off Coles Supermarkets, the $35 bln Australian group invites scrutiny of its coal-to-clothes hodgepodge. A Breakingviews analysis suggests a gap of 11 pct between its market value and the sum of its parts. It's enough to spur a fresh strategic review.
Takeda pushes its globetrotting ambitions too far 23 Apr 2018 The Japanese drugmaker led by a French CEO added cash to a slightly sweeter $60 bln bid for Irish rival Shire. Takeda's target is cheap, but the big premium will be hard to justify. The deal also would flood the market with shares and ratchet up debt. It's all a big stretch.
Regulatory reprieve adds tonic to Barclays revival 20 Apr 2018 After a year-long probe, British watchdogs plan to fine boss Jes Staley for trying to unmask a whistleblower. The verdict keeps Staley in his job and avoids awkward questions for the regulators and for Barclays’ board. Staley can now focus on turning around the investment bank.
First blood won’t be last in Aussie bank showdown 20 Apr 2018 The boss of wealth manager AMP quit Friday, as a public inquiry into the financial sector Down Under heats up. The Royal Commission has heard horror stories about lies, dud advice, and lenders charging the dead. Craig Meller’s scalp may not be the only one hung on the gate.
Beijing sets off careless Wanda fire sale 19 Apr 2018 Officials pushed the developer to shed assets to pay down debt, forcing it to scramble to stave off default. Buyers of its properties got discounts that let them book billions in quick profit. In retrospect, Beijing’s meddling looks more hapless than prudent.
Wall Street’s word is its bond excuses 18 Apr 2018 BofA, Citi and JPMorgan booked less revenue from debt sales in the first three months. Activity was down, but banks’ talk about the impact of tax cuts and such was just a way of saying clients didn’t hire them. That left Goldman the surprise leader for a second straight quarter.
Hadas: Knowledge is better shared than patented 18 Apr 2018 China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.
KPMG woes force South Africa to consider Big Three 18 Apr 2018 The audit firm’s future in the country is in doubt after it was sacked by the government – its biggest client – following the second scandal in under a year. Regulators have long worried about losing one of the Big Four global firms. South Africa provides a reluctant test case.
China/Russia oil hug can dodge Huarong curveball 18 Apr 2018 Beijing is investigating the state-run asset manager’s chair for graft, in a copy of its probe into private group CEFC. That complicates Huarong’s support for CEFC’s acquisition of a stake in Rosneft. Yet given these are de facto state players, the deal should still survive.
China backlash could unravel 5G network effect 18 Apr 2018 Huawei's retreat and ZTE being cut off from U.S. vendors will slow telecom infrastructure development in both America and China. And given how instrumental the two companies are to 5G technology and the power of supply chains, the whole global rollout is likely to be impeded.
L&G’s gender revolt has revealingly low bar 17 Apr 2018 The 983 bln pound asset manager will vote against chairs at UK companies if boards have too few women. It’s a laudable move. But the 25 pct threshold looks low, and traps groups as big as Barclays or London Stock Exchange. Diversity in British boardrooms has a long way to go.
Tesla in pole position to win U.S.-China trade war 17 Apr 2018 Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.
Widening net of China censors puts tech on notice 17 Apr 2018 Jokes and gay content are disappearing from the web. It's a fresh sign censors are policing beyond political discourse. For $25 bln microblog Weibo and peers, appeasing both users and regulators will get harder. It will make life tougher for China hopefuls like Facebook, too.
China’s two-track money policy hangs over economy 17 Apr 2018 Even as GDP grew 6.8 pct, industrial activity looks cooler, auguring a softer government line on bad debt. Higher official interest rates are being offset by short-term injections that keep the real cost of cash down. That could weaken the yuan and stir up more trade trouble.
Qualcomm’s future stuck on slow boat to China 16 Apr 2018 The chipmaker’s strategy depends heavily on closing its $44 bln NXP deal. A possible trade war leaves Chinese regulators in no mood to approve the U.S. company’s purchase, though. Qualcomm does have one bright spot: its long-running spat with Apple may be coming to a head.
Russia’s banks could once more be its airbag 16 Apr 2018 The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.
Ailing Indian hospitals warrant healthy bid action 16 Apr 2018 Buyout firm TPG is backing one of three rival offers valuing scandal-hit Fortis at up to $1.3 bln. Private services are in demand with rising incomes and an increase in lifestyle diseases set against New Delhi's failure to provide decent healthcare. Medical tourism helps, too.