Bloomberg (April 3)
“Japan Inc. is on track to overtake China in overseas dealmaking for the first time in six years.” According to Bloomberg data, “Japanese companies have announced $26.9 billion of overseas acquisitions this year, compared with $16.5 billion by Chinese buyers.” The reversal is fueled by “a hunt for growth at Japanese firms…at a time when China’s most prolific acquirers have been hobbled by regulatory probes and new outbound investment rules.”
Tags: Acquirers, Acquisitions, China, Dealmaking, Growth, Japan Inc., Outbound investment, Overseas, Regulatory probes, Reversal
Wall Street Journal (April 3)
“Donald Trump hasn’t been talking about the rising stock market lately, and no wonder. Stocks have given up their earlier gains since the President unveiled his protectionist trade agenda” amid concern over “uncertainty from rising trade tension.” So far, China’s response “is measured, affecting $3 billion in annual trade or about 2% of U.S. goods exports to China, but it sends a pointed message that a larger trade war would hurt American businesses, farmers in particular.” If China subsequently moves to target “America’s biggest exports to China, such as soybeans and Boeing aircraft,” the pain will be much greater.
Tags: Boeing, China, Concern, Exports, Farmers, Protectionist, Soybeans, Stock market, Trade, Trade war, Trump, U.S., Uncertainty
South China Morning Post (April 2)
Banks and regulators in China have engaged in a delicate dance between reducing non-performing loans (NPLs) and maintaining profits. “That’s why the NPL ratios of the nation’s key banks all hover at about the same level–now around 1.7 per cent of loans,” though “Fitch estimates that the real ratio could be as high as 20 per cent, implying total NPLs of 19 trillion yuan (US$3 trillion).” But the regulator is now becoming more demanding in NPL reduction and unforgiving of gimmicks previously employed to hide NPLs. “Given Beijing’s focus on the stability of the financial system, the flow of NPLs into the market should pick up considerably in the next two to three years, providing ample opportunity for new investors.”
Tags: Banks, China, Fitch, Gimmicks, Investors, Market, NPLs, Opportunity, Profits, Regulators
Washington Post (April 1)
China “has always been the biggest trade target for Trump. It also appears to be the first country to retaliate to his trade threats, putting pressure on leaders in Washington and Beijing to anticipate each other’s next moves quickly.”
The Atlantic (April Issue)
In the 1950s, most “Americans had a favorable opinion of large businesses.” These days, they only hold small businesses in esteem. “A majority of Americans now view large businesses as self-serving and self-dealing.” But these perceptions are based on myths. “Disdain for large businesses exaggerates their malfeasance while misapprehending their vital role in continued American success.” And that leads to more problems. “Feeding off the popular esteem for small business, policy makers are handicapping Big Business—in the process lowering productivity, dampening innovation, and hurting U.S. global competitiveness.”
Tags: Disdain, Esteem, Favorable, Global competitiveness, Innovation, Large businesses, Malfeasance, Myths, Opinion, Perceptions, Productivity, Self-dealing, Self-serving, Small businesses, U.S.
