Asia-Pacific

Japan exporters should fear slowdown, not boycott

22 Oct 2012

Ire over islands has hit Chinese consumers’ yen for things Japanese. But China’s slowing economy is having an even bigger impact on exports. And while China has toppled the U.S. as Japan’s biggest market, it’s plunging demand from Europe that’s dragging trade down the most.

China’s top reshuffle means suspense for investors

22 Oct 2012

Wang Yang, a vocal supporter of political reform, may miss out on a job on the Communist Party’s top body. Wang Qishan, a darling of foreign investors, should make the cut but may not get a key economic role. That could mean sweeping personnel changes in China’s financial sector.

India in depth: Too soon for central bank rewards

22 Oct 2012

Galloping rural wages and a loose fiscal policy are keeping inflation high even as the nation relies on hot money to fill a large trade deficit. An interest-rate cut now could be risky. The government must pursue more reforms before it can expect a reward from the central bank.

Is everything sacred in Canada?

20 Oct 2012

At first it was a hole in the ground - then the stock exchange and a DIY chain. Now the government has blocked a $5.2 bln shale gas deal - signalling to investors that the market for corporate control is effectively shut.

Indonesia’s Bob Marley economy’s gonna be alright

19 Oct 2012

Every little thing seems to be conspiring against it: poor infrastructure, political corruption, regulatory caprice and bureaucratic inertia. Falling commodities threaten the spread of wealth to poorer parts. But Indonesia’s immaturity gives it the resilience to muddle through.

China’s mild slowdown dims hope for big stimulus

18 Oct 2012

Third-quarter GDP growth of 7.4 percent was the lowest for three years. However, expansion picked up in September, investment is rebounding and exports improved. Though Beijing will want to keep policy loose, the case for a big economic boost is fading.

Corporate China beating banks at their own game

17 Oct 2012

Banks and bondholders aren’t the only ones working to keep the country’s debt-fueled party from crashing: companies are also lending more to each other, for longer. As growth slows, the risk is that rising past-due bills make it hard for the private sector to repay mounting debt.

Nat Rothschild better out than in at Bumi

16 Oct 2012

The financier’s resignation from the troubled coal company he helped create smoothes the way for a proposed exit by Bumi’s Indonesian partners. As an outsider Rothschild can argue publicly for giving minority shareholders full value - and maybe restore his reputation on the way.

Failed China Gas bid leaves business unfinished

16 Oct 2012

Sinopec dropped its $2 billion offer for the Chinese gas supplier. As a state-owned bidder, the political sensitivities of running a hostile takeover were too great, and the market suggested the price was too low. Yet China’s fragmented gas industry still needs to consolidate. 

Sprint shareholders have most to smile about

15 Oct 2012

Softbank’s $20 bln deal to buy 70 pct of the U.S. cellphone operator hands them a premium of about 30 pct. The Japanese group’s owners aren’t keen. Meanwhile, Sprint’s mountain of debt will shrink thanks to an $8 bln cash injection. But it will still be weak compared to rivals.

Bernanke’s Asian defence is an implausible yarn

15 Oct 2012

The Fed chief claims money printing by advanced nations is not the “dominant” force behind surging capital flows to emerging economies, and that they benefit from stronger demand in the West. Evidence suggests his first claim is wrong, while the second is impossible to verify.

Global economy hobbled by coordination failures

15 Oct 2012

Political wrangling in the euro zone and United States dominated debate at last week’s IMF meetings. But a longer-term concern is the slowdown in emerging markets. Though the developed world needs to work off its excess debt, it’s hard to see other countries picking up the slack.

Softbank-Sprint tie-up gets bad signal from market

12 Oct 2012

Investors wiped $6.9 bln off the Japanese telco’s value on Oct. 12, three times the boost to its U.S. target. The deal would stretch Softbank financially, and may preclude smaller purchases closer to home. CEO Masayoshi Son has shown chutzpah; he must show discipline too.

TPG’s pulled bid leaves Billabong investors adrift

12 Oct 2012

After the private equity house walked away from a $700 mln bid the shares fell to 40 percent below the level before takeover talks were revealed. There’s no word on why the bid failed, but Billabong’s business is challenged. The high-profile failure will leave a big stain.

Softbank catches Japanese overseas M&A bug

11 Oct 2012

The $40 bln group may take control of $17 bln Sprint Nextel. Aside from pooling iPhone purchases, combining the No. 3 cellphone carriers in the U.S. and Japan has little industrial logic. It looks like another “get out of Japan” deal fueled by cheap money and docile shareholders.

Bumi should grit teeth and engage with Bakries

11 Oct 2012

The troubled acquisition vehicle has a rescue bid of sorts from its Indonesian backers. The Bakries would cancel their holding in return for a stake in coal assets they sold to Bumi last year. It’s awkward in every sense. But the Bumi board has to maximize value and should talk.

BOJ’s conundrum is how to be more irresponsible

11 Oct 2012

When Japan’s central bank pioneered quantitative easing in 2001 it was the apogee of monetary adventurism. But the bar for unusual policy is set much higher today. If the BOJ wants to stay in the game, it needs to make brazen promises with a straight face – and be believed.

HK art market shines, Beijing enters blue period

11 Oct 2012

Mainland China’s arts auction revenue plunged 67 percent in the first half, having grown to be the world’s largest in 2011. That has driven domestic auction houses across the border to Hong Kong. There, taking on Sotheby’s and Christie’s will be the big challenge.

New recall narrows Toyota’s recovery window

10 Oct 2012

It may take just 40 minutes to replace the gizmo responsible for the Japanese automaker’s latest embarrassment, but with 7.4 million cars to fix, that’s 565 years of mechanic time. With the China boycott, the tsunami, and previous recalls, Toyota’s problems seem never ending.

China’s IMF boycott undermines quest for clout

10 Oct 2012

For China’s top bankers to bail on the Tokyo summit amid a territorial fight suggests public feeling is governing policy. But the IMF is supposed to be just about finance - and Japan has strongly backed a bigger role for Asian countries. Maybe China isn’t ready for a bigger say.