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By John Foley
Mengniu’s $1.6 billion bid for Yashili gives the target’s founding clan the chance to cozy up to a national champion, and buyout firm Carlyle a good return. Other investors are less fortunate - they will be selling for less than Yashili’s IPO price just three years ago.

Jefferies shows Wall St earnings still a crapshoot

By Antony Currie
The bank blamed a tough March and April for a 27 pct drop in Q2 fixed-income trading. That’s at odds with both market data and larger rivals – JPMorgan, for one, was well up on last year as of May. It doesn’t help that newly private Jefferies’ opacity makes comparisons tricky.

G8 shouldn't just act on tax - it should preach

By Viktoria Dendrinou
The rich world summit could come up with a substantive agreement on corporate tax avoidance. It might be an important step towards an efficient global system. But it can’t do much without a broader consensus. Leaders need to be tax reform evangelists, both at home and abroad.

Indonesia subsidy cut is right plan for wrong time

By Andy Mukherjee
The country’s plan to hike energy prices is a welcome reduction in a $20 billion subsidy bill. But inflation could surge, raising the risk of capital outflows. That leaves the central bank no room to offset the fiscal tightening; sacrificing GDP growth is the only option.

AT&T is all dressed up with nowhere to go

By Robert Cyran
The telecom company had a $93 bln bid for Telefonica blocked by Madrid, according to a Spanish newspaper. The target has denied the story. But it’s a sign of the problem AT&T faces: a lofty stock multiple makes M&A tempting, but it seems shut out of both domestic and foreign deals.

Iranians put hopes for change in pragmatic insider

By Una Galani
The election of moderate cleric Hassan Rohani to the presidency showed the level of public discontent with Iran’s ruling hardliners. A radical change in foreign policy, allowing an economic turnaround, is unlikely. But the balance of power in Tehran has definitely shifted.

Singapore’s creative bank penalty may be a one-off

By Peter Thal Larsen
The city-state is forcing lenders to set aside up to $9.6 bln in extra reserves as punishment for rate-rigging offences. With rates low, the costs will be smaller than recent mega-fines. And proposed new rules mean future misbehaviour will be met with more conventional justice.
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