Asia-Pacific

Measuring the US and China’s conscious decoupling

16 Nov 2023

President Joe Biden and his Chinese counterpart Xi Jinping don’t agree on the terminology, but the Sino-American relationship is fracturing. A close look at trade, finance, investment, people and geopolitical noise shows the world’s two largest economies are pulling apart.

COP28’s big challenge: green cash for poor states

15 Nov 2023

To hit net zero, rich countries need to find an extra $1 trln a year of public and private cash for the developing world. As delegates head to Dubai for 2023’s key climate shindig, the UAE could bolster its credibility as host by focusing attention and resources on a fix.

Capital Calls: Goodyear, Target

15 Nov 2023

Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.

China’s property boost has to sway wary banks

15 Nov 2023

Beijing wants to inject 1 trln yuan into housing projects. It’s a bigger version of a 2022 scheme lenders shunned because developers are saddled with huge debts. Without a broader plan to convince banks the government can stop the real estate rot, the new effort will also fail.

Bank of Japan’s hesitancy obscures yen’s appeal

15 Nov 2023

The central bank is signalling it will ditch ultra-low interest rates next year. That should boost the yen. Instead, it remains at historic lows against the dollar. Traders’ mistrust of the BOJ’s determination to act may cause them to miss out on the currency’s probable comeback.

Capital Calls: Disney’s Marvel flop, US inflation

14 Nov 2023

Concise views on global finance: Bob Iger’s prized acquisitions Marvel, Pixar and Lucasfilm are losing their mojo, just as his dealmaking mettle is being tested; inflation has eased even as growth looks strong, but warnings from consumers and companies signal potential weakness.

More US-China take-privates could get feisty

14 Nov 2023

A bidding war has erupted for $1.4 bln Nasdaq-listed industrial automation solutions firm Hollysys. One would-be buyer even staged a dawn raid. If a deal succeeds, minority owners of undervalued peers could push for more value, too, as Chinese companies bid farewell to the US.

Capital Calls: UK M&A guidelines

13 Nov 2023

Concise views on global finance: Prime Minister Rishi Sunak is now shaking up his own government’s takeover rules.

Australia climate refugee policy is hard to scale

13 Nov 2023

Canberra will welcome Tuvalu’s 11,200 citizens as rising seas threaten the Pacific Island country. It’s smart geopolitics from a top fossil-fuel polluter. But unless emissions are cut fast, there will be hundreds of millions of climate migrants clamouring to enter rich states.

China’s Singles Day shows buyers’ commitment issue

13 Nov 2023

The country’s biggest shopping event recorded meagre growth of around 2% in total volumes despite steep discounts. E-commerce giant Alibaba didn’t provide figures again, a sign of slow sales. Beijing needs consumers to power growth but shoppers look fatigued.

Meta’s China quest thaws thin layer of dense cube

10 Nov 2023

The $828 bln social media company plans to sell virtual reality headsets in the country, 14 years after its Facebook service was banned there. Hardware is a less thorny way to grab revenue. It also puts pressure on the US government to soften its stance on some Chinese tech.

Capital Calls: SoftBank

10 Nov 2023

Concise views on global finance: The Japanese conglomerate’s finance chief reckons its Vision Funds have ‘hit a bottom’. The firm’s broader surprise $6.2 bln quarterly loss, though, prompted shareholders to wipe 9% off the stock.

Japan has become a gold mine for value investors

10 Nov 2023

Japanese stocks delivered negative returns for decades. Low debt, a cheap currency and a shift in corporate power to shareholders – egged on by the authorities – are changing the dynamic. The stock market’s recent strong run could last for years.

 

Weak Biden-Xi handshake would send strong message

10 Nov 2023

The US and Chinese presidents may meet next week in San Francisco as tit-for-tat retaliations pressure trade. Beijing remains combative towards Taiwan while Americans coalesce on anti-China issues. De-escalating tensions can benefit both sides but is not politically expedient.

Capital Calls: Arm, Insurers’ climate score

9 Nov 2023

Concise views on global finance: The $56 bln chip group said it can’t be sure when certain customer deals will translate into revenue, undermining its quest for a steadier top line; insurers are still too addicted to dirty energy, a new study shows.

Ping An highlights China property and policy risks

9 Nov 2023

Beijing wants to broker a bailout of troubled developer Country Garden by the $100 bln insurer, Reuters reported. Ping An denies it has been asked. Yet it’s a warning that, as local governments try to defuse debt bombs, even large private companies may face pressure to help.

Hong Kong finance summit tiptoes around China

9 Nov 2023

Executives from Apollo’s Marc Rowan to UBS’s Colm Kelleher gathered in the Asian city to debate markets, debt and regulation. Yet few mentioned slow growth and slumping real estate across the border. For firms straddling the geopolitical divide, some topics are best avoided.

Capital Calls: Bayer breakup

8 Nov 2023

Concise views on global finance: The 40 bln euro German seeds-to-drugs maker is considering splitting off its consumer or crop science divisions, but may still be left with a more unwieldy structure than its pharma peers.

India’s gamified equities are a wake-up call

8 Nov 2023

Retail investors are driving derivative volumes to far higher ratios than in the US. Yet 90% of these speculators lose money. The activity is tough to regulate and it spotlights hidden risks of lightning-speed digitally enabled financial inclusion.

China EV champs race to make leaner green machines

8 Nov 2023

Nio is ditching 10% of its staff. Rivals won’t be far behind. While electric-car startups in the People’s Republic have proven their tech can keep pace with Tesla, their losses have been rising, in part due to a persistent price war. That makes cutting costs the next big test.