Asia-Pacific

Ferretti’s yachts find fitting berth in China

12 Jan 2012

The luxury yacht-maker embodies modern finance’s turbocharged highs and lows. Buoyed by the rise of the super-rich, it made one buyout house a fortune, then helped sink another. Ferretti is now being sold to a state-backed Chinese group for around a fifth of its peak valuation.

Asia’s MDs lose their pink-slip immunity

11 Jan 2012

BofA’s cull of over a dozen high-ranking bankers in the region partly reflects unique problems. But rivals also want to cut costs as well as headcount, making seniority no safeguard. As Asian fees fall, only those with strong cash engines can hang on and hope the cycle turns.

China’s likely finmin choice a win for reformists

11 Jan 2012

Lou Jiwei could be a good choice to run the finance ministry. As head of sovereign fund CIC, he has rare experience of global finance, and has been vocal about fiscal and other changes. A step up would strengthen the reformist streak in China’s consensus-driven political machine.

Loss of Bhattal may signal Nomura retreat

10 Jan 2012

The retirement of ex-Lehman banker Jesse Bhattal, a year after being promoted to the top job, curtails the Japanese firm’s quest to be a globally relevant investment bank. Weak markets and the unexpected resilience of bulge-bracket rivals presented Bhattal with a Herculean task.

Taiwan voters should focus on growth, not China

10 Jan 2012

A second term for President Ma Ying-jeou may push Taiwan faster towards its giant neighbour. But flagging exports are more pressing. With only Ma likely to spend what it takes to perk up growth, a decisive victory for his party in elections on Jan. 14 would be best for the economy.

Shale oil set to take edge off crude price

9 Jan 2012

Gas from shale has flooded the U.S. market, providing 20 pct of supply and squashing prices. Rock-derived oil, by contrast, may add only about 4.5 pct to global supply by 2020. But that would still cover the expected rise in Chinese demand and help keep a lid on crude inflation.

"Tax less, spend less" policy could help China

9 Jan 2012

Beijing takes too big a share of the pie. Fiscal revenue grew by a quarter in 2011. Lower taxes for the poor and retailers can help spur consumption. That may mean Beijing has to spend less on infrastructure, but higher levies on property and resources would help close the gap.

Woodford surrender doesn’t end battle at Olympus

6 Jan 2012

The jilted CEO dropped his bid to retake the helm after failing to win support for a proxy war, and will sue for solace instead. But shareholders still face a fight. If they don’t, Olympus’ banks may muscle the company into a far-from-ideal equity injection from a rival.

For a contrarian bet, try China’s Las Vegas

6 Jan 2012

Macau was a winner in 2011. Gaming revenue grew 42 percent. As China gets richer, so will the garish, casino-filled enclave. An economic slowdown will hit casual gamblers, but high-rollers matter more. Macau will thrive as long China’s inequality and corruption go uncurbed.

China’s lead in patents masks lag in innovation

5 Jan 2012

The rising economic giant probably topped the world as a place to file applications in 2011. But the dodgy quality of many patents and foreign activity contradict the idea of a surge in homegrown ingenuity. As it has in manufacturing, China will catch up - but it’s not there yet.

Short-selling could give China long-term boost

5 Jan 2012

China may bolster short-selling by setting up a new securities lending exchange. More shorts would help curb excessive speculation and rekindle interest in the market. However, since Beijing is likely to remain firmly in control, expect things to move slowly.

Campaign fever to drive Asian economies in 2012

5 Jan 2012

It’s not just the United States: leadership change looms in most of Asia this year, encompassing a third of both the planet’s population and its GDP. Income inequality set the agenda in 2011. Now pro-growth populism is likely to rule instead.

Exxon’s Japan sale may not show downstream doubts

4 Jan 2012

With rivals like Conoco splitting off refining, investors are on the lookout for signs the Texas titan will join the trend. Exxon’s likely $5 bln exit in Japan isn’t a clear one. The group recently sank $25 bln into downstream projects. It may merely be ditching a weak asset.

China’s M&A dragon will blow hot in 2012

4 Jan 2012

Falling prices and tight credit mean state-backed buyers can play to their strengths. Two newly minted oil deals, and Three Gorges’ Portuguese swoop, show Beijing’s burgeoning appetite. Big name bids may follow, while China’s savers and consumers unwittingly foot the bill.

Korean spending spree sets right tone

4 Jan 2012

Seoul plans to blow most of its budget in the first half and is likely to end the year in deficit. It might seem an election-year stunt. But promoting domestic jobs instead of using a weak currency to boost exports is a path the rest of Asia should follow.

China’s growth may dip below 8 percent in 2012

3 Jan 2012

Three things could push the country’s GDP growth to a ten-year low: falling house prices, a slump in property investment, and slowing exports. All will take their toll on consumer confidence. Last time, Beijing stimulated the economy; it can ill afford a second round.

Stock up on gold, tinned food and shotgun shells

30 Dec 2011

OK, there’s no need to be too melodramatic. But hard times bolster the case for hard assets. When protesters fill the streets and the only cure for debt crises is printing money, it’s tempting to head for the hills. Assets offering true security fit in a suitcase.

Beijing will face fresh yuan dilemma

30 Dec 2011

The yuan’s six-year rise is likely to end, if not reverse, in 2012. The trade surplus is shrinking, inflation has eroded the currency’s real value and foreign investors are selling. But the U.S. still wants a revaluation. That would only increase the chance of a hard landing.

Long live gloom – it’s a great time to buy stocks

29 Dec 2011

It’s the oldest saw in the investment handbook: buy low and sell high. But with global shares at their cheapest in a generation, confident investors are a rare breed. If the bad times persist, however, 2012 could be another classic year to accumulate equities.

U.S. protests won’t stop Japan’s yen meddling

28 Dec 2011

The Treasury has rightly criticised Tokyo for weakening the yen. Currency intervention has limited impact, and exporters have learned to live with a strong yen. But fears that traders see the yen as a one-way bet mean more meddling is likely, whether Washington approves or not.