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Investors added $5 bln to the German blue-chip’s market cap after it unveiled plans to float its capital-intensive MaterialScience unit. Once again, markets are rewarding sharper focus. A logical follow-up would be to quit agrochemicals, leaving a pure healthcare business.

China has not one property problem, but many

Rank the biggest cities by riskiness, and huge differences become apparent. Some places face heavy oversupply, others look unaffordable, while in most prices are sliding. A national correction is unlikely, but a conflagration of local ones could be pretty nasty.

ECB’s trillion-euro race may start slowly

A first round of liquidity injections this week will test Mario Draghi’s attempt to fight deflation in the euro zone. A small take-up could increase pressure for more ambitious sovereign debt purchases. But the ECB has time, and several ways to boost its balance sheet as planned.

China stealth stimulus may slip down back of sofa

A reported injection of $81 billion via big banks equates to less than a month of credit. It won’t restore rapid growth, but may help cash-strapped companies pay their bills for a while. High debt and low liquidity are forcing authorities into increasingly intricate manoeuvres.

Henry Kravis spins a different kind of club deal

The buyout baron’s KKR is buying Pioneer’s DJ audio equipment business for $550 mln. It’s Abenomics meets Ibiza for the private equity firm’s latest trendy investment. Kravis is laying down a smooth groove in a funky M&A market, but could be late to the dance music party.

Applying corporate finance to nations

Breakups and spinoffs generally make public companies run better, become more accountable and deliver greater value to their constituents. As Scotland prepares for a historic vote on independence, it’s worth considering whether the same logic might also be valid for governments.

No-debt mania continues to dictate German policies

Angela Merkel’s rhetoric on higher investment is shifting, but actual policy changes will remain symbolic. Perpetuating a balanced budget continues to be her government’s priority. That is misguided and harmful, but German voters seem to like that fundamentalist approach.