Asia-Pacific

Capital Calls: Roche’s $7 bln partial cure

23 Oct 2023

Concise views on global finance: The Swiss pharma giant’s deal for rights to develop a bowel disease treatment in the US and Japan can help diversify its portfolio. But new boss Thomas Schinecker will need more such purchases to fill out his depleted pipeline.

China’s Middle East agenda gets harder to manage

23 Oct 2023

The country’s private refineries have been snapping up over 90% of Iran’s cheap crude exports. Tighter US sanctions in the face of the Islamic Republic’s support for Hamas could turn these customers away. That would cut across Chinese efforts to grow influence in the region.

West’s latest China corporate risk: medical graft

23 Oct 2023

Beijing is cracking down on corruption in the supply of healthcare products. Western groups like Siemens Healthineers and Philips source over 10% of sales from the People’s Republic. The risk is that domestic rivals use the situation to grab market share.

Capital Calls: Merck aims at targeted cancer drugs

20 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

China’s graphite curbs send green warning shot

20 Oct 2023

Beijing is introducing export controls for a key EV battery material, following fresh US tech restrictions. With 90% of global processing capacity in the People’s Republic, the West will struggle to go it alone. Carmakers’ dependence on the People’s Republic is here to stay.

Green turn will extend China’s Belt and Road trek

20 Oct 2023

Ten years on, Beijing’s $1 trln infrastructure plan has gone global. While the West has largely shunned the scheme fearing debt bondage and political meddling, developing countries have rushed to join. Their lack of cash to fund the clean transition will keep the project alive.

US tech controls help and hinder China chipmakers

20 Oct 2023

Washington’s latest restrictions aim to curb Chinese access to semiconductors for AI and warfare. Beijing is years away from replicating sophisticated components and tools like those made by ASML. But the rules create opportunities for local champions such as $30 bln SMIC.

China’s leaders speed towards Japanisation

20 Oct 2023

The People’s Republic invests more than Japan did at the height of its 1980s asset bubble. China’s real estate is more overvalued, and its debt is higher. President Xi Jinping’s centralised rule and stifling of private enterprise increase the risk of Japanese-style lost decades.

Capital Calls: Merck aims at targeted cancer drugs

19 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

Brookfield can lob cranky Origin investors a bone

19 Oct 2023

The money manager’s $12 bln offer for the Australian energy company is fair, according to an independent review. Raising the price just a percent or two should be enough to get sceptical top shareholder AustralianSuper and others on board.

India and Japan will be Asia’s next power couple

19 Oct 2023

Modi and Kishida's governments partner on security and are setting up a $600 mln fund to co-invest in green infrastructure. It's a fresh sign that financial ties, including potentially on cross-border commodities M&A, may flourish to match the strengthening geopolitical bond.

Capital Calls: P&G’s pricing power

18 Oct 2023

Concise views on global finance: The $350 bln maker of Pampers diapers and Pantene shampoo charged another 7% more on average for its stable of products, but it can afford to keep squeezing shoppers because of the $1.1 trln Americans have in the bank.

China’s GDP allows room for stimulus waiting game

18 Oct 2023

The world’s second-largest economy grew a better-than-expected 4.9% in the third quarter, putting the full-year target within reach. It’s another reason for Beijing to refrain from a splashy intervention, but the recovery is fragile. War in the Middle East could yet play spoiler.

KKR’s Japan chip gear IPO clears high first bar

18 Oct 2023

Kokusai’s $720 mln float is the country’s largest in five years and coincides with the bottom of the semiconductor cycle. Pricing was cautious and two investors bought nearly half the offer. But with war drums beating, Japan’s elongated, inefficient listings process is in focus.

Macquarie’s Norse saga sends telco breakup warning

17 Oct 2023

The Australian firm is mulling options for Danish operator TDC. A lengthy plan to separate its network from its consumer business left both units burdened by debt amid intense competition, which could deter buyers. Others looking to split, like Telecom Italia, may think twice.

The financial ramifications of US-China tensions

17 Oct 2023

The rivalry between the world’s two largest powers is having an impact on almost every aspect of global business and finance. In this episode of The Exchange podcast, Jared Cohen from Goldman Sachs discusses how investors should approach geopolitics, and the limits of decoupling.

Globalisation woes create new winners and losers

17 Oct 2023

After peaking at 61% of world GDP in 2008, trade is falling due to tariffs, industrial policies and geopolitical strife. That means higher wages and production costs for companies, and more inflation for consumers. Yet some countries, commodities and workers stand to gain.

Country Garden default will serve a bigger purpose

17 Oct 2023

China’s top property developer may miss a debt payment. Creditors have an incentive to quickly agree on a restructuring for its $11 bln of offshore bonds after rival Evergrande’s process flopped. Beijing needs to show the highly leveraged sector can get onto a healthier path.

Putin and Xi’s strengthening bond has a weakness

17 Oct 2023

The Russian president’s expected meeting with his Chinese peer re-ups their “no-limits” friendship. Beijing is gorging on cheap crude and sending goods to its sanctions-hit neighbour. However, the thriving $190 bln bilateral trade is eroding Moscow’s economic sovereignty.

Capital Calls: Starboard vs. Murdoch

16 Oct 2023

Concise views on global finance: The investment fund wants the publisher of the Wall Street Journal to spin off its real estate assets a year after another activist agitated for a similar move.