Asia-Pacific

Lithium merger is charged up by tycoon fever

27 Sep 2023

Gina Rinehart, Australia’s richest person, has bought 11% of Liontown, which is sizing up a $4 bln takeover by Albemarle. Whether she makes a full bid or not, she’s only the latest mining billionaire forcing a strategic buyer to dig deeper for an energy transition commodity.

Capital Calls: Net neutrality is back, again

26 Sep 2023

Concise views on global finance: US regulators want to reopen a decade-old fight over the internet’s rules of the road. But just like merger cops who have struggled to gain traction, they are trying to use yesterday’s tools to predict tomorrow’s problems.

Hong Kong bankers play an anxious waiting game

26 Sep 2023

Fewer IPOs in the city mean firms such as UBS and Bank of America are more willing to handle middling transactions like Tuhu’s $150 mln offer. But as big deals stir in New York and beyond, the downsizing increasingly will look like an awkward stopgap for Wall Street.

Nomura is merely first in line for new China risk

25 Sep 2023

Charles Wang Zhonghe, the firm’s Hong Kong-based chair of investment banking for the People’s Republic, is barred from leaving the mainland. Overseas banks committing to bulk up in the country may no longer be able to avoid the effects of President Xi Jinping’s crackdowns.

Evergrande is weak link in China’s property fix

25 Sep 2023

The developer’s debt rejig has fallen before the first hurdle. It can’t issue new notes because of an investigation. For all Sunac and Country Garden’s good news, Evergrande accounts for half of the trio’s $670 bln liabilities. Its struggles will hold back the entire market.

Western rival to Belt and Road has much to prove

25 Sep 2023

The G7’s $600 bln plan to compete with China’s flagging investment push has launched splashy railway and energy schemes in Africa and Asia. But governments and private investors haven’t put up much cash. It’s also unclear how poor countries will avoid debt traps, says Hugo Dixon.

Ukraine war gives wings to India bond index debut

22 Sep 2023

JPMorgan will add the country’s sovereign debt to its emerging market index, easing concentration issues following Russia’s exclusion. It drags foreigners into a $1 trln market. New Delhi sees new gains from opening but it may have to bend on taxes and more to win wider backing.

M&A spillover in India-Canada fight hurts everyone

22 Sep 2023

As bilateral relations sour over a murder, tycoon Sajjan Jindal is going slow on his planned $8 bln consortium bid led by JSW Steel for Vancouver-based Teck’s coal assets. The stalling hurts the buyer and the seller, and India’s diversification ambitions a bit more.

Capital Calls: US budget

21 Sep 2023

Concise views on global finance: US House Speaker Kevin McCarthy is siding with hardline conservatives to fund the government. Empowering the further-right flank narrows the already slim odds of new Ukraine aid, cannabis reform and crypto clarity.

Grab can feast on Delivery Hero’s Asia leftovers

21 Sep 2023

The Singapore giant is an obvious buyer for its rival’s Southeast Asian food business, a potential $1 bln purchase. It has extended its lead before by gobbling up operations of retreating Western firms. Investors are tepid on the tech recovery but Grab has the muscle for a deal.

Total’s green bet on Gautam Adani is a win-win

21 Sep 2023

The $160 bln oil major is doubling down on its Indian partner, even though units it backed before are among the tycoon's worst performers since a short attack. TotalEnergies’ green targets may be more pressing than the risk of Adani woes. Bullishness is easier now to justify too.

Anti-obesity drugs can shrink more than patients

20 Sep 2023

Wegovy and other weight-loss treatments could transform public health. That may hurt medical, food and fitness companies, while potentially affecting activities from drinking to gambling. This shrinking revenue demands a new investment concept: total unaddressable markets.

Capital Calls: Disney, Cazoo

20 Sep 2023

Concise views on global finance: Boss Bob Iger’s $60 bln splash on theme parks and cruises invites further scrutiny of the Magic Kingdom’s wild cash flow ride; the UK-based online car retailer, valued at $7 bln in a SPAC deal two years ago, is handing the keys to bondholders.

China may finally nick some metals clout from LME

20 Sep 2023

Beijing has long been trying to erode Western dominance in the pricing of key commodities. Shanghai’s plans for a nickel contract could hurt the London venue’s benchmark status as it reels from a trading scandal. Yet building the necessary global warehouse network will take time.

Capital Calls: Four-day workweek

19 Sep 2023

Concise views on global finance: US Senator Bernie Sanders joined striking autoworkers in urging a conversation about shortening the workweek. Rising productivity has long enabled labor to win fewer hours. With disruptive new technologies rising, bigger victories make sense.

India entry into geopolitical storm will be costly

19 Sep 2023

New Delhi dismissed as ‘absurd’ Canada’s allegation of its involvement in a Sikh leader’s murder. Either way, the fallout will ripple through cabinets and boardrooms in the West. For global companies and money managers, it’s a reminder that de-risking from China is complicated.

Aussies may let $20 bln burn Brookfield’s pocket

19 Sep 2023

It’s what the Canadian investor wants to plough into renewables once it co-buys Origin Energy for $12 bln. But a big shareholder in the power company wants a higher offer. And the country’s antitrust watchdog may nix the deal, capping CEO Bruce Flatt’s climate options Down Under.

China’s next chip battle is for the bottom line

19 Sep 2023

Huawei’s new smartphone proves the country can make cutting-edge hardware despite US restrictions. But it’s unclear if semiconductor provider SMIC can scale supply. Huawei’s flashy phones have hogged the limelight: SMIC’s shrinking margins deserve the same scrutiny.

Capital Calls: Planet Fitness

18 Sep 2023

Concise views on global finance: The gym chain’s share price hit a three-year low on news of its longtime boss’s exit. Rising interest rates have made it costlier to open new locations. Boosting prices could help, as it has at rival Life Time.

China’s property price caps have two sharp edges

18 Sep 2023

Price caps were introduced in 2016 to contain runaway home prices. Ditching them now will allow indebted developers to sell down their bloated inventory and help the market find a bottom. Officials are flirting with the idea, but Beijing will need to brave the social fallout.