Asia-Pacific

Capital Calls: Saudi Arabia and the BRICs

29 May 2023

Concise views on global finance: The oil economy is in talks to become the ninth member of the Shanghai-based “BRICS bank”, another sign of Middle East money stepping up to fill gaps in Asia created by Western-led sanctions.

Pinduoduo’s “global” brand masks identity crisis

29 May 2023

The $95 bln group is trying to disassociate itself from China as overseas suspicion of Beijing’s influence over apps rises. As with TikTok, relocating corporate structures is unconvincing. True separation means costly overhauls to supply chains, data practices and more.

Capital Calls: Lufthansa/ITA

26 May 2023

Concise views on global finance: The 11 bln euro German carrier pays 325 mln euros for a 41% stake in the airline born from the ashes of Alitalia.

Central bankers face a balance sheet reckoning

26 May 2023

Assets held by central banks have exploded since 2008. As interest rates rise, some of those institutions are slipping into the red. We’re told normal accounting rules do not apply. However, losses erode inflation-fighting credibility and independence, argues Edward Chancellor.

Capital Calls: Russian cash, Chinese car feud

25 May 2023

Concise views on global finance: European plans to divert Russian money to Ukraine are ill-thought-out; a feud between China’s BYD and Great Wall Motor is spooking investors.

China thesis lurches from one lazy extreme to next

25 May 2023

Investors that piled into Chinese tech stocks and high-yield bonds are fleeing on worries about President Xi Jinping’s agenda, as the yuan slumps and commodities retreat. The People’s Republic is a tricky trade, but now is a better time to rebalance portfolios than abandon them.

Capital Calls: Embracer fail dents credibility

24 May 2023

Concise views on global finance: Shares in the $3 bln maker of shoot-’em-up video games fell nearly 45% after a mystery partnership agreement fell through at the eleventh hour.

‘Greedflation’ loosens its grip on food retailers

24 May 2023

Suppliers like Unilever and Kraft Heinz are easing inflation-busting price rises that hit grocers hard. That will benefit profit margins at the likes of Kroger and Carrefour. Their next challenge will be convincing cash-strapped consumers to pay, and buy, more in supermarkets.

Foxconn’s global dealmaking suffers Sharp shock

24 May 2023

The iPhone supplier rescued the Japanese electronics group in 2016 with a promise to turn it around. Sharp’s surprise $1.6 bln writedown casts doubt on the Taiwanese group’s grip on its investment. It also raises questions about Foxconn’s push into assembling electric vehicles.

Capital Calls: Buyout loans

23 May 2023

Concise views on global finance: The termination of broadcaster Tegna’s sale to Standard General lets banks off the hook for funding some $8 bln in buyout debt, but clearing the pile of hung loans is just one part of the leveraged finance problem for big lenders.

Supply chain scrutiny may upend EU solar ambitions

23 May 2023

Renewable groups must forgo photovoltaic components from China’s Xinjiang to comply with forced labour curbs. Yet the region produces 35% of the pure silicon needed in panels, and US firms are scooping up the non-Chinese supply. Enforcing a ban may scupper EU green targets.

SoftBank pulls rabbits out of Fortress’s hat

23 May 2023

Boss Masoyoshi Son appears to be selling the money-losing Japanese conglomerate’s US alternative asset manager for at least double the valuation initially touted. There should be enough tricks left over for new majority owner Mubadala. But Fortress staff get the best of the deal.

EU will go easy on Indian resale of Russian fuel

23 May 2023

Fuelled by imports from Moscow, oil products sales to Europe from refiners including Reliance and Nayara have nearly doubled to $15 bln. The trend shows anti-Russian sanctions are not watertight. Yet, risks of an energy inflation revival make a European Union ban a tough call.

Capital Calls: JPMorgan’s rich pickings

22 May 2023

Concise views on global finance: The giant lender’s investment day laid out benefits from buying parts of defunct bank First Republic. Boss Jamie Dimon gets more than just the fuzzy glow from stabilizing the industry. Snagging more wealthy clients should please his investors too.

China’s Micron hit sets up repeat strikes

22 May 2023

The $72 bln US memory-chip maker says Chinese restrictions will probably reduce revenue less than 10%. Perhaps, but similar measures taken against database firms like Oracle and IBM a decade ago had a bigger long-term effect, helping domestic manufacturers to catch up.

Mizuho will find M&A history rhymes at Greenhill

22 May 2023

The Japanese giant is expanding rapidly in merger advice by acquiring the boutique for $550 mln. Striking during a dry spell means a lower cost and less chance of bankers leaving. Dealmakers blind to the risks of their own deals, however, has caused decades of disappointment.

Revolut-SoftBank fight exposes VC share artifice

22 May 2023

The fintech group may only win a UK banking licence if it gets rid of preference stock held by the Japanese investor. Similar structures are common in startup land, and help justify puffed-up valuations like Revolut’s $33 bln price tag. The fracas shows they also have a downside.

Strongmen are riskier the more they stay in power

22 May 2023

Autocrats often seduce investors with promises to be good for business. But Turkey’s Tayyip Erdogan, Russia’s Vladimir Putin and Xi Jinping in China show this effect doesn’t last. The longer leaders stick around, the greater the risk of poor decisions, says Hugo Dixon.

G7 says “de-risking”, China hears “containment”

22 May 2023

Wealthy democracies argue they’re diversifying, not decoupling, from the world’s second-largest economy. Yet Beijing sees them hobbling strategic industries, undercutting its global leadership and boosting defence budgets. “Escalation” or “retaliation” are more accurate synonyms.

Thai Inc shakeup could follow shock election win

22 May 2023

The winning party remains upbeat it can form a government. Institutional reform is top of Move Forward’s agenda, but its wish list includes breaking up monopolies and cutting state concessions. The $500 bln economy needs a competitive upgrade. It will come at tycoons’ expense.