Asia-Pacific

Shipping tax could yield $100 bln climate windfall

12 Jun 2023

The industry emits almost 3% of the world’s greenhouse gases. It’s also largely escaped taxation. A levy on emissions would encourage shippers to go green, while raising money to help poorer countries. Key meetings in the next month are the time to push the idea, says Hugo Dixon.

Capital Calls: UBS, Brookfield

9 Jun 2023

Concise views on global finance: The Swiss bank’s state loss guarantee is structured like an insurance policy against an unlikely event; the Canadian investment group teams up with UAE and Saudi investors to beat CVC’s consortium and win payments provider Network International.

GoTo’s new CEO has one key job: bring stability

9 Jun 2023

Patrick Walujo is replacing Andre Soelistyo atop the $10 bln Indonesian superapp. The private equity boss may want to more closely knit together GoTo’s disparate businesses. But after several high-level changes, cost cuts and stake sales, providing a steady hand comes first.

Lessons from the original Industrial Revolution

9 Jun 2023

There’s much excitement that automation will unleash a new era of innovation. Yet in Britain, which led the first transformation of the industrial era, growth has stalled. Policymakers should study the conditions which sparked previous economic success, writes Edward Chancellor.

Toshiba gives shareholder management masterclass

9 Jun 2023

The Japanese company is recommending a $14 bln buyout two-and-a-half months after first supporting it. The deft way its board eventually handled the process provides a template for Japan Inc to engage pushy owners. Point one: don’t automatically treat shareholders as the enemy.

‘Reverse CFIUS’ threat will be deterrent enough

8 Jun 2023

Team Biden is nearly ready to unveil a plan to restrict some $15 bln of US investment in Chinese tech. The process probably will be even messier than one used to review inbound capital aimed at sensitive domestic sectors. Extra red tape alone, however, should serve its purpose.

Capital Calls: GAM

8 Jun 2023

Concise views on global finance: An investor group led by telecoms billionaire Xavier Niel is attempting a tricky boardroom coup at the ailing fund manager.

Yacht maker’s Italy pivot shows the way for Prada

8 Jun 2023

A year after its Hong Kong IPO, the Chinese-owned maker of boats loved by Hollywood stars is rushing to also list shares in Milan. The move offers scant valuation upside, but hedges geopolitical risks. If Ferretti can pull it off, luxury brand Prada will follow.

Private equity hurtles towards hard Asia reset

7 Jun 2023

China is the area’s powerhouse, but funds are under pressure from investors to limit exposure to the People’s Republic. Sequoia splitting the country off from the rest of emerging Asia formalises a growing trend, but an industry pivot to politically safer shores may sap returns.

Capital Calls: Bitcoin is last crypto standing

6 Jun 2023

Concise views on global finance: SEC action against crypto exchanges Binance and Coinbase clarify the regulator’s thinking on which cryptocurrencies it deems to be securities. The lawsuits threaten every digital token except bitcoin, whose design makes it an outlier.

Sequoia breakup will expose go-local consequences

6 Jun 2023

The venture capital firm, which manages more than $100 bln, is splitting into three. The rebranded China and India arms will operate independently from the US and Europe. It speaks to geopolitical tensions, but runs contrary to natural evolution. And untangling comes with risks.

Dicey Asian borrowers offer an unusual shelter

6 Jun 2023

Oaktree’s $500 mln loan to Anil Agarwal’s Vedanta is sizeable in the region’s private debt market. The Indian mining group's bonds yield 28% yet  Howard Marks' fund deftly handled problems in China and leads a growing band of lenders eyeing high returns as rates bite in the US.

Saudi’s oil lollipop reflects its sticky situation

5 Jun 2023

The kingdom has secured OPEC+ consent to extend output cuts into 2024, and will also lop another 1 mln barrels off its own daily production. But if traders bought OPEC’s demand forecasts, oil prices should be higher anyway. Saudi may also struggle to slash output any further.

Pirelli CEO pivots from globalisation to trade war

5 Jun 2023

Marco Tronchetti Provera teamed up with a Chinese buyer to take the tyremaker private in 2015. Now Sinochem’s 37% stake poses business and governance risks for the $5 bln company. An appeal to Italy’s nationalist government may help the veteran industrialist maintain control.

Capital Calls: Turkey, Indivior

5 Jun 2023

Concise views on global finance: President Tayyip Erdogan’s new treasury minister will struggle to steer the $900 bln economy towards orthodox monetary policies; shares in the London-listed drugmaker jumped after it settled a lawsuit, making it more appealing to potential buyers.

Shein tries to thread US-China needle

5 Jun 2023

The $66 bln fast-fashion phenom is a formidable rival to Zara and H&M thanks to its data prowess and efficient Chinese supply chains – despite the trade war. Now geopolitics is forcing the company to rethink its identity right before it tries to list in the US.

Capital Calls: $6 bln pet buyout

2 Jun 2023

Concise views on global finance: Shares in UK veterinary pharmaceuticals group Dechra are trading 6% below private equity firm EQT’s new, lower bid. That looks too pessimistic given the chunky valuation on offer.

Securonomics is fuzzy new lodestar for investors

2 Jun 2023

Globalisation, which lowered barriers for trade and financial flows, is in retreat. Taking its place is a doctrine that places national security above economic efficiency. Felix Martin argues the shift for money managers is profound – and throws up some big policy contradictions.

Indian ports will test tycoons’ safe harbour

2 Jun 2023

Sajjan Jindal’s JSW is floating India’s second-largest commercial operator. It’s less profitable than Gautam Adani’s $20 bln business where auditor Deloitte is waving a flag. In a global industry with few listed giants, appetite for this small deal will deliver its own verdict.

Syngenta’s bumper IPO will test Chinese appetite

1 Jun 2023

The seeds-to-pesticides group is planning a $9 bln stock market float in Shanghai this year. In this Viewsroom podcast, Breakingviews columnists explain how investors need to get comfortable with its high debt levels and use of toxic chemicals that could hurt its valuation.