Fed might fret about emerging market “spillback”

June 16, 2015

Weak investment and import demand in developing nations is threatening to drag down U.S. growth just as the Federal Reserve mulls raising interest rates. The central bank was able ignore the effects of its bond-buying on others. But a spillback could choke the American recovery.

Return to China tough for American orphan stocks

June 12, 2015

Soaring home markets are prompting Chinese companies to delist from U.S. exchanges. The likes of social network Renren and data centre group 21Vianet may hope for higher valuations in China. But rigid rules make mainland listings harder. Only the unloved will attempt the journey.

Edward Hadas: Central banks can save the world

By Edward Hadas
June 10, 2015

The monetary authorities made a hash of things last decade, as they did in the 1920s, 1930s and 1960s. They still have a three-fold problem. Central banks fundamentally misunderstand financial markets, debt and currencies. With new ideas, their record could improve.

U.S. trade setback more diplomatic than economic

May 13, 2015

Senators denied President Obama authority to negotiate a new Pacific trade pact. The squabbling contrasts with China’s success in organising its infrastructure bank. But the benefits of both projects are uncertain. The world economy can shrug off the blow to America’s leadership.

Yum Brands China split short on crispy goodness

May 6, 2015

Activists have turned the hotlamp on the KFC parent’s China arm. It could be worth $20 bln if diners forget past safety scandals, a Breakingviews calculator shows. To justify more, Yum must expand rapidly, but pitching into China’s poorest cities brings risk as well as revenue.

Abe’s Capitol Hill speech needs ideas for backyard

April 29, 2015

Shinzo Abe’s address to Congress will highlight Japan’s strategic and financial relationship with the United States. But the mooted trade deal offers limited economic benefits. Managing the rivalry with China and fostering cordiality with India can make Japan a more vital ally.

China’s cyber crackdown: A guide for the perplexed

April 24, 2015

The People’s Republic is squeezing technology companies. New banking rules and counter-terrorism legislation could make it harder for foreign groups to operate in the expanding market. Is security just an excuse to protect domestic players? Breakingviews cracks the code.

Tencent’s discount to Facebook harder to justify

April 7, 2015

The Chinese social media giant generated about the same revenue as its U.S. counterpart last year and was more profitable, despite having fewer users. Yet it trades at a lower multiple of earnings. As the two business models converge, the valuation gap needs a rethink.

China pulls its punches with Qualcomm settlement

February 10, 2015

Antitrust watchdogs slapped a $975 mln fine on the U.S. chipmaker and forced it to lower patent fees. That’s helpful for local smartphone makers. Yet the outcome doesn’t explicitly curb Qualcomm’s dominance. Big as China is, it can’t yet afford to shut out foreign technology.

SEC gets tough on auditors and soft on China

February 9, 2015

Accounting firms will find it harder to keep paperwork on suspected Chinese fraudsters from the U.S. watchdog. Those that don’t try to help could face temporary bans. Yet the new approach leaves China plenty of scope to nix investigations. Investors are only a little better off.