Фондовые индексы Азиатско-Тихоокеанского региона завершили торги в четверг максимальным снижением с начала ноября после того, как руководство Федеральной резервной системы (ФРС) повысило прогноз темпов роста ставки.
Фондовые индексы Азиатско-Тихоокеанского региона выросли в понедельник в связи с усилившимися ожиданиями, что на президентских выборах в США победит кандидат Демократической партии Хиллари Клинтон, пишет Financial Times.
Фондовые индексы Азиатско-Тихоокеанского региона активно растут в ходе торгов в понедельник в связи с усилившимися ожиданиями, что на президентских выборах в США победит кандидат Демократической партии Хиллари Клинтон, пишет Financial Times.
Большинство фондовых индексов Азиатско-Тихоокеанского региона (АТР) снижается в понедельник, инвесторы следят за статданными из США и выступлениями руководителей Федеральной резервной системы (ФРС).
HONG KONG (Reuters) - The billionaire founder of Hong Kong property group New World Development Co Ltd, Cheng Yu-tung, died late on Thursday aged 91, the company said on Friday.
Everyone knows that GOP nominee and lukewarm acid gargle Donald Trump is a dealmaker par excellence ― that’s just science, man! But what many of you can’t appreciate is that Trump is also a peacemaker ― and on a global scale, to boot. In an interview this week with the Portland Press Herald in Maine, Trump said that he is the only candidate in the race who can possible achieve total “global harmony.” All you need to do to see that is take a look at his past, and use your brain’s supply of logic-sauce to just scale up. Let’s go to the tape! Q: What was the best deal you ever made – the best deal? A: Maybe the West Side Railroad Yards on the west side of Manhattan, that was one of the great deals that I made, one of the best real estate deals …we built almost 6,000 units on the west side of Manhattan, land, a very successful job. You know what, though? “A very successful job” is really just one way of looking at it. Over at Bloomberg, Tim O’Brien remembers it as a “bungled ... deal of a lifetime.” So, a bit of a jaundiced view, I guess. The basic backstory is this. In the mid-1970s, Trump used his family connections to purchase a large tract of land along the Hudson River side of Manhattan, between 59th and 72nd streets, that came available after its previous holders, the Penn Central Transportation Co., went bankrupt. Trump spent the next few years dithering with the property ― at one point losing ownership ― before repurchasing the plot in the mid-1980s. By this time, Trump had big dreams for the project, imagining it as a new home for NBC that was, depending on who you were talking to, dubbed either “Television City” or “Trump City.” As O’Brien relates, all Trump really needed was to “bring together different stakeholders” and “appease [their] interests.” So, naturally, what happened is that Trump got himself into an epic shooting war with then-New York Mayor Ed Koch over a tax abatement. Per O’Brien: “The battle played out in a carnivalesque stream on TV and on the front pages and gossip columns of newspapers.” Koch eventually stuck it to Trump, denying him his zoning request and providing NBC with sufficient tax breaks to induce the network to remain in its Rockefeller Center home. Trump vowed to develop the West Side Yards his way after Koch departed office, but never did. Instead, as O’Brien reports, this happened: In 1994, with the Yards bleeding about $23.5 million in annual carrying costs, and long after Koch had departed City Hall, Trump’s bankers forced him to give up control of the site. The property went to a group of Hong Kong investors, including New World Development, for $82 million and the assumption of about $250 million in debt Trump had amassed. The Hong Kong investors later broke ground on the site with a series of high-end condominiums known as Riverside South, and the group used Trump’s name on some of the buildings there (they also paid him management and construction fees). The Hong Kong group sold the entire project for about $1.8 billion in 2005 ― the largest residential real estate transaction in New York City’s history at the time. So that’s the story of what Trump calls “the best deal he ever made.” With that in mind, let’s proceed to the Press Herald’s follow-up question: Q: What would be the best deal you could negotiate as president of the United States? A: Peace all over the world would be the best deal. And I think I would know how to do it better than anybody else, but peace all over the world. Sure, man. The largely failed “Television City” deal ― which Trump has described as a “war to the death” and which featured Ed Koch taunting him as a “piggy, piggy, piggy” ― is obviously a precursor to Trump bringing us “peace all over the world.” ~~~~~ Jason Linkins edits “Eat The Press” for The Huffington Post and co-hosts the HuffPost Politics podcast “So, That Happened.” Subscribe here, and listen to the latest episode below. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.
Hong Kong billionaire Li Ka-shing(李嘉誠）might be the first Hong Kong tycoon to be accused of abandoning the motherland at a time of sharp economic downturn. He is not the last. This month, the Cheng family of New World Development had to give a rare press conference just to deny it [...]
Крупнейший по объему продаж в Китае девелопер Evergrande Real Estate Group приобретет недвижимость в Шанхае и Пекине у миллиардера Ченг Ю-Тунга (Cheng Yu-tung) за 20,4 млрд юаней ($3,2 млрд). Отметим, что Evergrande приобретет у застройщика New World Development, контролируемого миллиардером Ченг Ю-Тунгом, отель и офисные здания в провинции Гуйчжоу за 7,3 млрд юаней, а также элитный жилой проект в Пекине за 7,6 млрд юаней. Кроме того, будет куплена недвижимость в Шандун и Шанхае на сумму 2 и 3,5 млрд юаней соответственно.
This is part of the #CareerAdvice series - featuring successful professionals who share their advice to people who would want to take their career to the next level. Starting off his career as a web designer a decade ago, Ken Chan, now the Managing Director for ICGX and Wayin Partner in Asia Pacific, shares with us the secrets to having successful career and how to overcome professional challenges that could actually help carve your career path. Ken Chan, Managing Director at ICGX Asia Limited Can you tell us a bit about how you started your career? What are some of your best moments in your professional life? I started off as a web designer 10 years ago. It was indeed a tough moment as there were a lot of new skills to pick up and a lot of pressure in meeting my high demands at work. I always tried to find the best solution and ways to work efficiently along with improving my business mindset. My goal was to help as many brands as possible that are focused on digital marketing and analytics. I had a wonderful opportunity to start ICGX and to partner up with Wayin, a company founded by Scott McNealy, the founder and ex CEO of Sun Microsystems. Our entrance into the market was a welcoming one as we had acquired a couple well known clients and strong support such as from Jockey Club, JOYCE.com, New World Development, TVB.com and agencies like OMD and DDB etc. It was a phenomenal early success for a business that has just started in less than a year. I'm still learning how to manage and direct my company effectively everyday. There's much to learn and an exciting journey ahead! If you could advise your 20-year-old-self today, what would tell him? Try your best to maintain good relationships with those you have met, it will pave out a smoother path when excelling to the next level. Not saying to please everyone, but rather to act with honesty and integrity. To build trust and respect with everyone that crosses my path. Learn how to manage your personal time, provide time for yourself and for your family while being mentally prepared to grab hold of any opportunities that comes your way. What has been the most valuable advice you've ever gotten when you were facing challenges in your career? I am lucky to have different mentors and advisors in different stages of my career, from design to business. The most inspirational one for me is when someone told me not to think about business when I am not a marketer. His saying actually prompted me to register a master degree in marketing. Originally, I just wanted to prove him wrong but the decision has somewhat shaped my new career path and brought me my current success. What would you advise the millennial just starting with their career or aiming to take their careers to the next level? The first job is a key to shape your future and help you move up to the next level. It's more for personal growth, so please don't focus on a specific task or job. Just learn as much as you can! It is a stepping stone to your desired career and it's definitely a learning curve! Learn more from Ken by connecting with him on LinkedIn and Twitter. Enjoyed this? Watch out for the next #CareerAdvice series or share your own. Connect with me on Twitter and LinkedIn.
Tsipras Tamed as Economists Declare Greece Loses Austerity Fight (BBG) Greece readies reform plans to first sign of leftist unrest (Reuters) Yellen Faces Congress Amid Direst Threat to Fed Since Dodd-Frank (BBG) The war must go on: Kiev says cannot withdraw heavy weapons as attacks persist (Reuters) Ukraine fears spread of war after blast in eastern city (Reuters) Denmark Dismisses Report It Could Consider Capital Controls (BBG) Deadline Nears on Homeland Security Funding Impasse (WSJ) Gross Fund Hurt by Oil’s Plunge Amid Bets on Energy Bonds (BBG) Turkish military invades Syria to evacuate soldiers, relocate tomb (Reuters) Rising Franc Upends Daily Life in Swiss Borderlands (WSJ) U.S. Banks Hoard $2 Trillion of Ultra-Safe Bonds (BBG) Local bankers emerge as Fed ally in fight against audit bill (Reuters) UK Banks Slash Ranks Of Millionaire Pay Deals (Sky) As ‘Spoof’ Trading Persists, Regulators Clamp Down (WSJ) Canada's Valeant to buy Salix in $10.1 billion deal (Reuters) Pope gets away from Vatican to work on correcting 'defects' (AP) Overnight Media Digest WSJ * The fledgling GOP-controlled Congress returns to the Capitol just days before its first major fiscal deadline as a battle over President Barack Obama's immigration policies has set up a showdown on whether to fund the Department of Homeland Security. (http://on.wsj.com/1B3VuEw) * Switzerland's decision last month to lift the cap on the franc is disturbing everyday transactions in the country's border areas. (http://on.wsj.com/1w0tCuQ) * Corporations and the government must be "true partners" in fighting computer hackers, or breaches like the one at Sony Pictures Entertainment last year will grow more common, President Barack Obama said earlier this month. A detailed look at the attack on the Sony Corp unit shows that could be a tall order. (http://on.wsj.com/1GjGQsH) * Valeant Pharmaceuticals International Inc said on Sunday it would buy Salix Pharmaceuticals for about $10 billion, a return to its big deal-making ways after a failed bid for Botox maker Allergan Inc last year. (http://on.wsj.com/1zZJ3Ed) * Spoofing, a bluffing tactic traders use to manipulate prices of anything from stocks to futures, is illegal under the 2010 Dodd-Frank law. Exchanges and regulators have only recently begun clamping down. (http://on.wsj.com/1weLxns) * George Soros, Michael Milken and David Bonderman are among investors benefiting from early bets on a red-hot sector: young companies developing drugs that fight cancer by using the body's immune system. (http://on.wsj.com/1zZJ3Ed) * The Xiali sedan, once a status symbol in China, is now an emblem of the struggles of domestic versus foreign brands such as Volkswagen and Chevrolet that now offer less expensive vehicles. (http://on.wsj.com/1zZJuhD) FT British Ministers have set aside 2 billion pounds ($3.08 billion) to cover potential write-downs in the value of existing student loans in this financial year alone following an increase in the rate of graduates' being unable to repay, according to Treasury documents. Dubai-based private equity group Abraaj Capital acquired 25 percent stake in Turkey's online retailer Hepsiburada. The deal was valued more than $400 million. Boutique investment bank Rothschild considers paying its 2014 bonuses early with a view to avoid payment of extra taxes that might be levied if Labour comes back to power. Stuart Gulliver, the chief executive of HSBC Holdings Plc was drawn into a tax evasion scandal after it was claimed that he had saved millions of dollars from the taxman in a Panamanian company through its Swiss private bank. NYT * In a high-profile suit set to go to trial this week, a jury will pass judgment about whether Ellen Pao suffered discrimination. (http://nyti.ms/1zZIev6) * After years of being treated as an interesting side business, autos have become the latest obsession for Silicon Valley, with Apple Inc assigning about 200 engineers to work on electric vehicle technology and Google Inc saying it envisions the public using driverless cars within five years.(http://nyti.ms/1zyqOGL) * To repair its relationships in the music world, Pandora has created a division to work with labels and artist managers, opened its vast databanks, and begun experimenting with artist promotions.(http://nyti.ms/1DMukSW) * Fox News host Bill O'Reilly has taken to the airwaves to fight back against accusations that he misled audiences with stories about his war reporting earlier in his career.(http://nyti.ms/1DMus4X) * With rents surging as the Manhattan office market rebounds, many companies are looking to cut costs, and one way to do that is by trimming personal space.(http://nyti.ms/1EGURQg) * Wielding the weapon of his pen, President Obama this week is expected to formally reject a Republican attempt to force construction of the Keystone XL oil pipeline. But in stopping the transit of petroleum from the forests of Alberta to the Gulf Coast, Obama will be opening the veto era of his presidency.(http://nyti.ms/1BDJkmP) * Valeant Pharmaceuticals International Inc, the acquisitive Canadian pharmaceutical company, has agreed to pay $10.4 billion for Salix Pharmaceuticals Ltd, or $158 a share in cash. Including debt, the transaction is valued at about $14.5 billion.(http://nyti.ms/1Lw59qk) Canada THE GLOBE AND MAIL ** The Harper government's push to deliver a balanced budget despite the burden of low oil prices has attracted fresh attention to a potential stockpile of federal cash: a multi-billion-dollar taxpayer stake in the auto business. The government's remaining 73.4 million shares in General Motors are now worth more than $3.40 billion in total, thanks to the combined effect of a solid stock price and a weakened Canadian dollar. (http://bit.ly/18fGjgk) ** The federal government is rejecting calls for more independent oversight of Canada's national security agencies even as it speeds passage of legislation that would give sweeping new powers to spies and police in the name of fighting terrorism. Parliament will vote Monday night on the Anti-Terrorism Act after the Conservatives limited second-reading debate for the legislation to three days. The bill will be sent to a Parliamentary committee for scrutiny. The Tories want the controversial legislation to become law before the summer begins. (http://bit.ly/1DJttUL) ** Health officials say a 19th case of measles has been confirmed in Quebec. Public health officials at a news conference on Saturday would not confirm whether the new case is a child or an adult, nor whether it is linked to Quebec's previous 18 cases. The source of the outbreak for the first 18 cases has been traced to Disneyland, California. (http://bit.ly/1za9l6z) ** Valeant Pharmaceuticals International Inc is back in major deal-making mode with the all-cash $10.4 billion agreement to acquire gastrointestinal disorders specialist Salix Pharmaceuticals Ltd. (http://bit.ly/1EHJK9y) NATIONAL POST ** Nova Scotia's largest newspaper has locked out its unionized printing plant employees after contract negotiations failed to reach an agreement. Thirteen press operators and mechanics at the Halifax Chronicle Herald were locked out Saturday, the company said in a news release. It said the employees had turned down a proposal from management. (http://bit.ly/1DN6ab3) ** The federal government has sweetened the deal for would-be natural gas exporters with new tax measures, but the industry is still fretting about feasibility of West Coast projects amid a deteriorating LNG price environment. (http://bit.ly/1ABbaNF) Hong Kong SOUTH CHINA MORNING POST - China's over-the-counter (OTC) equity market may get a fresh boost with a much anticipated regulatory nod to insurance funds looking to invest in start-ups. According to two insurance industry officials, several insurers are studying the OTC market as a new investment channel and insurers plan to invest in some of the start-ups listed on the market. (bit.ly/1vZGaCW) - Hong Kong fashion designers look set to benefit from this year's budget, with the government expected to offer the sector HK$200 million ($25.8 million) in promotion and scholarships in the hope of nurturing young talent in Hong Kong, according to a government source. It would be the first time the government dedicated a set sum to the fashion industry in its annual budget. (bit.ly/1EkPDLO) THE STANDARD - A savings fund providing backbone to fight off future challenges is expected to be laid out in Wednesday's budget. The fund, due to be announced by Financial Secretary John Tsang Chun-wah, will provide resources to face problems posed by the aging population and other difficulties. (bit.ly/1vZJ9LA) - Hong Kong developers rolled out their home sales plans for the Year of the Goat, and agents expect a more active first quarter compared with last year. New World Development will launch six residential projects, with some 2,100 homes in total. (bit.ly/17oIhKt) HONG KONG ECONOMIC JOURNAL - HSBC Holdings Plc , which is overshadowed by allegations that its Swiss private bank helped clients to dodge taxes, is expected to post a seven percent drop in yearly profit at $21 billion, according to median forecast by brokerages. HONG KONG ECONOMIC TIMES - The number of Hong Kong people migrating to western countries including the United States, Canada, and Australia, totalled 6,900 in 2014, down 9 percent from a year earlier, the government's data showed. Immigration consultancy Centaline said emigration enquiry jumped 40 percent and the number of application increased as much as 10 percent. Britain The Times NEXT RBS CHAIRMAN MUST MEET CHANCELLOR'S APPROVAL The leading candidate to become the next chairman of Royal Bank of Scotland will have to meet the chancellor to discuss his or her vision for the bank before formally receiving the role. (http://thetim.es/1AyXDpH) CHANCELLOR BREAKS HIS SILENCE OVER HSBC TAX SCANDAL George Osborne has broken his silence over the tax scandal surrounding HSBC Holdings Plc by saying that it should be left to the courts to deal with any wrongdoing. The chancellor spoke out after claims that he was ducking questions over the bank and why there had been only one prosecution after allegations of tax evasion through its Swiss subsidiary. (http://thetim.es/1vqnf9b) The Guardian SWISS ACCOUNT SECRET OF HSBC CHIEF STUART GULLIVER REVEALED Stuart Gulliver, the HSBC Holdings Plc chief executive who has vowed to reform the crisis-hit bank, sheltered millions of pounds in a Swiss account through a Panamanian company and remains tax domiciled in Hong Kong. Leaked files show that the Derby-born Gulliver held about 5 million pounds ($7.69 million) in a Swiss account. (http://bit.ly/17K6Gda) MPS CALL FOR OFGEM TO CRACK DOWN ON ENERGY NETWORK COSTS The energy watchdog, Ofgem, has come under fire from MPs for exposing consumers to higher bills by failing to crack down on industry costs. The Commons energy and climate change committee said new price caps for National Grid and other power distribution companies, intended to keep down the costs of distributing and transmitting gas and electricity, were too generous. (http://bit.ly/1DIhoix) The Telegraph P&O CELEBRATES HANDOVER OF ITS BIGGEST SHIP P&O Cruises on Sunday celebrated the handover of the biggest addition to its fleet. The final instalment of the 473 million pounds Britannia was 5 percent cheaper than expected because of the strength of sterling against the euro. The original budget for the 141,000-tonne cruise liner, with accommodation for 3,600 passengers and 1,400 crew, had been 500 million pounds. (http://bit.ly/1EkvAxa) GREECE READIES LIST OF REFORMS TO DODGE BANKRUPTCY The Greek government will put forward plans to root out tax evasion and overhaul the country's labour laws in a bid to convince international creditors it should be granted a vital extension of its bailout programme. Athens is due to present a series of proposals to its international creditors formerly known as the Troika, in return for a four-month bailout reprieve which will help avert bankruptcy in the stricken country. (http://bit.ly/17oyV1b) Sky News POLICE ASSESSING AL SHABAAB UK MALL THREATS Islamist militants have released a video in which they appear to call for terrorist attacks on some of the busiest shopping areas in the UK and the United States. U.S. authorities have said they are taking the threats seriously. (http://bit.ly/1vZmqPJ) JACK STRAW SUSPENDED OVER 'CASH FOR ACCESS' Jack Straw has been suspended from the Labour Party over claims of a "cash for access" scandal. The former foreign secretary, along with Tory MP Malcolm Rifkind, were secretly filmed by the Daily Telegraph in a joint investigation with Channel 4's Dispatches programme apparently offering to use their influence in return for money. (http://bit.ly/18f73xt) The Independent APPLE SUED FOR ALLEGEDLY POACHING BATTERY ENGINEERS FROM ELECTRIC CAR FIRM A123 Systems makes batteries for electric cars and claims that Apple Inc has hired its staff. The accusations come amid claims that Apple is planning an electric car of its own. (http://ind.pn/1zsTlOb) COLLAPSE IN NEW HOMEBUILDING HEAPS PRESSURE ON MINISTERS The number of new homes being built collapsed in the second half of last year. There were only 29,800 new housing starts in England in the final quarter of 2014, the Communities Department reported. The news will be a grave embarrassment for ministers who have been claiming that the construction industry is booming. (http://ind.pn/17jbqqj) Fly On The Wall Pre-market Buzz ECONOMIC REPORTS Domestic economic reports scheduled for today include: Chicago Fed national activity index for January at 8:30--consensus is 0.05 Existing home sales for January at 10:00--consensus down 1.8% to 4.95M rate Dallas Fed manufacturing activity index for February at 10:30--consensus -4.0 ANALYST RESEARCH Upgrades Colgate-Palmolive (CL) upgraded to Buy from Neutral at Citigroup Computer Task Group (CTG) upgraded to Buy from Neutral at B. Riley IMS Health (IMS) upgraded to Overweight from Equal Weight at Barclays LabCorp (LH) upgraded to Outperform from Neutral at Credit Suisse LabCorp (LH) upgraded to Overweight from Neutral at Piper Jaffray MedAssets (MDAS) upgraded to Buy from Neutral at SunTrust New Gold (NGD) upgraded to Neutral from Sell at Roth Capital Penn National (PENN) upgraded to Buy from Neutral at BofA/Merrill Teleflex (TFX) upgraded to Overweight from Equal Weight at Barclays Downgrades Boeing (BA) downgraded to Sell from Neutral at Goldman Century Communities (CCS) downgraded to Neutral from Overweight at JPMorgan CyberArk (CYBR) downgraded to Underweight from Neutral at JPMorgan DirecTV (DTV) downgraded to Hold from Buy at Brean Capital Enerplus (ERF) downgraded to Neutral from Buy at BofA/Merrill GP Strategies (GPX) downgraded to Neutral from Buy at B. Riley Interactive Brokers (IBKR) downgraded to Market Perform at Keefe Bruyette MRC Global (MRC) downgraded to Neutral from Outperform at RW Baird Precision Castparts (PCP) downgraded to Neutral from Buy at Goldman Quest Diagnostics (DGX) downgraded to Underperform from Neutral at BofA/Merrill Rio Tinto (RIO) downgraded to Neutral from Buy at UBS Salix (SLXP) downgraded to Neutral from Overweight at Piper Jaffray Spectrum (SPPI) downgraded to Neutral from Buy at Roth Capital Initiations Axalta Coating (AXTA) initiated with a Buy at KeyBanc BofI Holding (BOFI) initiated with a Buy at DA Davidson CSX (CSX) initiated with an Overweight at JPMorgan Canadian National (CNI) initiated with a Neutral at JPMorgan Canadian Pacific (CP) initiated with an Overweight at JPMorgan Ensign Group (ENSG) initiated with an Outperform at RBC Capital Entellus Medical (ENTL) initiated with a Buy at BofA/Merrill Entellus Medical (ENTL) initiated with an Overweight at Piper Jaffray Flex Pharma (FLKS) initiated with a Buy at Cantor Flex Pharma (FLKS) initiated with a Buy at Jefferies Flex Pharma (FLKS) initiated with a Buy at Roth Capital Flex Pharma (FLKS) initiated with an Outperform at JMP Securities Flex Pharma (FLKS) initiated with an Overweight at Piper Jaffray Kansas City Southern (KSU) initiated with an Overweight at JPMorgan LDR Holding (LDRH) initiated with a Buy at Brean Capital Norfolk Southern (NSC) initiated with an Underweight at JPMorgan Presbia (LENS) initiated with a Buy at Jefferies Union Pacific (UNP) initiated with a Neutral at JPMorgan Washington Trust Bancorp (WASH) initiated with a Neutral at Compass Point COMPANY NEWS Valeant (VRX) confirmed acquisition of Salix (SLXP) for $158 per share, or a total enterprise value of approximately $14.5B Polypore (PPO) agrees to sell company for $60.50 per share in cash to Asahi Kasei. Immediately prior to Asahi Kasei's acquisition of Polypore, 3M (MMM) will acquire the assets of Polypore's Separations Media segment for approximately $1B and Asahi Kasei will receive the cash proceeds from the asset sale New Residential (NRZ) to acquire Home Loan Servicing (HLSS) for $18.25 per share Globe Specialty Metals (GSM), Grupo FerroAtlántica agree to $3.1B combination DISH (DISH) announced President and CEO Joseph Clayton to retire March 31. DISH Co-founder and Chairman Charles Ergen, who has previously served as DISH’s President and CEO, will succeed Clayton in those roles Apple (AAPL) to invest EUR 1.6B in new European data centers EARNINGS Companies that beat consensus earnings expectations last night and today include: DISH (DISH), Tower Semiconductor (TSEM), KLX Inc. (KLXI), Pacific Drilling (PACD) HSBC (HSBC) reports FY14 EPS 69c, compared to 84c a year ago Tower Semiconductor (TSEM) sees Q1 revenue $255M give or take 5%, consensus $224.03M KLX Inc. (KLXI) suspends financial guidance Valeant (VRX) reports Q4 EPS $2.58 vs. $2.15 in Q413, expects Q1 cash EPS of at least $2.30 per share State Street (STT) says legal accrual does not affect Q4, FY14 results NEWSPAPERS/WEBSITES 21st Century Fox (FOXA), Discovery (DISCA) held preliminary merger talks, AFR reports Google (GOOG) reaches preliminary agreement with Italian regulators, WSJ reports McDonald's (MCD) under pressure to raise hourly pay as Wal-Mart (WMT) sets bar, Reuters reports J&J (JNJ) considers Cordis sale with Cardinal (CAH) the leading suitor, Bloomberg says U.S units of Deutsche Bank (DB), Santander (SAN) seen failing stress tests, WSJ reports Investors should hold on to E.W. Scripps (SSP), Barron's says American Airlines (AAL) shares could continue 50% higher, Barron's says SYNDICATE Higher One (ONE) withdraws mixed securities shelf LinnCo (LNCO) files to sell common shares, no amount given Momenta (MNTA) enters $75M At-The-Market equity sales agreement with Stifel QTS Realty Trust (QTS) files to sell 8.7M shares of common stock Ultra Clean (UCTT) files to sell 1.44M shares of common stock for holders
Telstra (OTCPK:TLSYY) sells its 76.4% stake in Hong Kong mobile phone business CSL to Richard Li's HKT for ~$1.8B. HKT is buying the remaining 23.6% from New World Development (OTCPK:NDVLY).The deal opens the door for a profitable exit by Telstra ahead of regulatory changes in Hong Kong aimed at boosting competition.Regulators must now approve the deal - HKT estimates it will have 31% of Hong Kong's mobile market post-acquisition. Post your comment!
Фирма HKT, являющаяся подразделением крупнейшей в Гонконге телефонной компании PCCW, договорилась о приобретении гонконгского бизнеса австралийской компании Telstra. Сообщается, что в рамках сделки HKT приобретет подразделение сотовой связи CSL за $2,43 млрд, при этом 76%-ная доля акций будет выкуплена у Telstra за A$2 млрд ($1,8 млрд), а оставшиеся 24% бумаг у фирмы New World Development.
Фирма HKT, являющаяся подразделением крупнейшей в Гонконге телефонной компании PCCW, договорилась о приобретении гонконгского бизнеса австралийской компании Telstra. Сообщается, что в рамках сделки HKT приобретет подразделение сотовой связи CSL за $2,43 млрд, при этом 76%-ная доля акций будет выкуплена у Telstra за A$2 млрд ($1,8 млрд), а оставшиеся 24% бумаг у фирмы New World Development.
With website improved, Obama to pitch health plan (Reuters) Joe Biden condemns China over air defence zone (FT) Tally of U.S. Banks Sinks to Record Low (WSJ) Black Friday Weekend Spending Drop Pressures U.S. Stores (BBG) Cyber Monday Sales Hit Record as Amazon to EBay Win Shoppers (BBG) Ukraine's Pivot to Moscow Leaves West Out in the Cold (WSJ) Investment banks set to cut pay again despite rise in profits (FT) Worst Raw-Material Slump Since ’08 Seen Deepening (BBG) Democrats Face Battles in South to Hold the Senate (WSJ) Hong Kong reports 1st case of H7N9 bird flu (AP) In Fracking, Sand Is the New Gold (WSJ) UK construction expands at fastest pace in more than six years (BBG) Thai Politician Turned Protest Leader Vows to Uproot System (WSJ) Door opens to offshore accounts in trade zone (China Daily) Overnight Media Digest WSJ * The number of banking institutions in the United States has dwindled to its lowest level since at least the Great Depression, as a sluggish economy, stubbornly low interest rates and heightened regulation take their toll on the sector. (http://link.reuters.com/vug25v) * Across the former Soviet Union, Moscow's increasingly tight embrace is forcing governments that had long sought to maneuver between Russia and the West to choose sides. (http://link.reuters.com/xug25v) * The ability of Democrats to keep control of the Senate in 2014 will depend largely on elections in the southern states, where candidates are contending with the dismal approval ratings of President Obama and increased political pressure from the problem-ridden rollout of the health care law. (http://link.reuters.com/zug25v) * Dow Chemical plans to shed at least $5 billion worth of low-margin businesses, including the products that sparked its creation more than a century ago. (http://link.reuters.com/dyg25v) * Apple has acquired social-media analytics firm Topsy Labs for more than $200 million, according to people familiar with the matter. The startup specializes in data from Twitter. (http://link.reuters.com/fyg25v) * Federal prosecutors are seizing cars and cash from those using straw buyers to acquire expensive new vehicles in the United States and export them to China, where the cars fetch much more. (http://link.reuters.com/gyg25v) * As the five lead underwriters for Twitter Inc's IPO rolled out their first research reports on the stock, only two gave Twitter a ratings equivalent of "buy." (http://link.reuters.com/hyg25v) * A federal appeals court ruling late Monday might spare BP Plc from making hundreds of millions of dollars in compensation payments stemming from its 2010 Gulf of Mexico oil spill. (http://link.reuters.com/jyg25v) * Bank of America Corp and Freddie Mac said Monday they reached a settlement to resolve claims stemming from mortgage loans the bank sold to Freddie over the past decade, the latest in a string of large bank payouts. (http://link.reuters.com/myg25v) * Elite New York law firm Cravath, Swaine & Moore LLP plans to pay its associate attorneys the same end-of-year bonuses it paid in 2012, reflecting a cautious mode after a year in which many big law firms are on track to make only modest revenue gains. Junior-most attorneys at Cravath will receive $10,000 and those with the most experience will get $60,000, according to an internal memo reviewed by The Wall Street Journal. (http://link.reuters.com/pyg25v) * A top lieutenant to Bernard Madoff explained in detailed, often colorful testimony the lengths required to maintain the firm's massive Ponzi scheme, including one incident in which the staff put fake trading records into a refrigerator so an auditor wouldn't be able to tell they were still warm from having just been printed. (http://link.reuters.com/qyg25v) FT An FT analysis reveals that the nine biggest investment banks are prepared to take pay cuts for the third time in three years. Investment banks would slash remunerations such as bonuses keeping in mind the interests of the shareholders. Mediobanca is expected to announce the appointment of Barclays adviser Stefano Marsaglia as co-head of the bank's global corporate and investment banking unit with an eye to use its London office to expand operations in Europe. The Pensions Regulator outlined on Tuesday a consultation paper on companies' approach on striking a balance between sustaining their business performance and funding their employees' retirement benefits. International Data Corporation PC tracker says personal computer sales fall more than 10 percent and would be the most severe yearly contraction on record in 2013. Former News Corp executive Peter Chernin has bought a stake in a specialist video streaming business Crunchyroll for about 100 million pounds. Anglo-Australian mining group Rio Tinto pledged to cut capex by up to 20 per cent in each of the next two years as the company looks to woo investors. NYT * Government authorities are trying to choke off the supply of borrowers to online lenders that offer short-term loans with annual interest rates of more than 400 percent, the latest development in a broader crackdown on the payday lending industry. * The rollout of President Obama's health care law may have deeply disappointed its supporters, but on at least one front, the Affordable Care Act is beating expectations: its cost. * Between 2007 and 2009, Jon Horvath developed a regular routine as a trader at SAC Capital Advisors: obtaining confidential information about Dell Inc's financial results well before the computer company's quarterly disclosures. And those efforts, Horvath detailed for a jury on Monday in a Manhattan federal district courtroom, were made with the full knowledge of his boss, Michael Steinberg. * On Monday, the Chernin Group acquired a majority stake in Crunchyroll, a San Francisco-based company that streams Japanese anime over the Internet. Terms of the deal were not announced, but a person briefed on the matter said the investment was worth a little less than $100 million. Existing management and TV Tokyo, another investor in Crunchyroll, will remain involved. Former News Corp executive, Peter Chernin, is the founder and chief executive of the Chernin Group. * Goldman Sachs and JPMorgan Chase have finally overcome a regulatory rebuke that had been hanging over both banks since the Federal Reserve performed stress tests this year on large financial firms. * On Monday, Thoma Bravo sold Digital Insight, a company it owned for about 124 days, to NCR for $1.65 billion. Canada THE GLOBE AND MAIL * The price of electricity is set to rise steadily in Ontario over the next two decades, with the most dramatic increases in the next five years. The province's long-term energy plan, released Monday, projects a 42-percent jump in home power bills by 2018, climbing to 68 percent by 2032. The cost for industrial enterprises will also rise, by 33 per cent in the next five years and 55 per cent in the next 20. * A Canadian businessman in the West Bank said the Palestinian Authority wrongly detained his father for nine hours because he had criticized Palestinian president Mahmoud Abbas. Reports in the business section: * BlackBerry Ltd's new leader made a forceful plea to its largest customers to stick with the company, despite growing evidence that competitors are eating away at what was once the smartphone maker's most dominant market position. "Our 'for sale' sign has been taken down and we are here to stay," John Chen, the company's new executive chairman and interim chief executive, said in the letter to customers Monday. * The food fight in the grocery sector is expected to remain fierce in 2014, as low inflation keeps a firm lid on prices. A University of Guelph report to be released on Tuesday predicts food prices will rise between 0.3 percent and 2.6 percent in 2014. The low level of inflation, or even deflation in some cases, may be a boon to consumers, but it leaves retailers struggling to boost their sales. NATIONAL POST * As his brother took on the voice of business in the city, Mayor Rob Ford vowed to find $50-million in budget cuts and took a shot at a meeting between the deputy mayor and the premier, suggesting it should take place with him, "the elected Mayor of Toronto." FINANCIAL POST * In the months before the nasty public relations battle waged between Canada's biggest cellphone companies and Ottawa last summer, the federal government was crafting a strategy designed to avoid earlier "failures" to create competition in the wireless industry. That strategy centered around keeping cellular airwaves specifically earmarked for new players in the sector indefinitely out of the hands of the dominant three providers - Rogers Communications Inc, BCE Inc and Telus Corp - partly in hopes of pushing the upstarts into each others arms. * Is it time for the Bank of Canada to start "talking down" the dollar? True, inflation is weak - and could get weaker - and that has helped push the dollar lower, but probably not enough to significantly benefit Canadian sales of products abroad and ease the burden of economic growth on consumers Hong-Kong SOUTH CHINA MORNING POST -- Famed film director Zhang Yimou faces a fine for breaching the one-child policy as local authorities in Jiangsu province said he and his wife violated family planning rules by having three children without approval and before they were married. -- The mainland's central bank has announced detailed reform guidelines to support the Shanghai Free Trade Zone, but foreign investors are still questioning just how free the zone will be. -- In a growing sign of the Chinese currency's dominance, HSBC said the city's yuan deposits are likely to grow at a faster pace than the Hong Kong dollar and other currency deposits, rising to 30 percent of all deposits by 2015 from the current 10 percent. THE STANDARD -- Securities and Futures Commission chairman Carlson Tong said the appointment of Mary Ma as SFC non-executive director has nothing to do with Alibaba's intended listing in Hong Kong. Boyu Capital, which Ma chaired and co-founded, holds a stake in Alibaba. -- Mid-size developer Chuang's Consortium International is seeking to sell its retail complex in Tsim Sha Tsui at up to HK$35,000 ($4,500) per square foot. Agents said the price was relatively high as compared to commercial units in Central. -- Financial Secretary John Tsang Chun-wah reiterated his warning on the risk of a property bubble. But executive councillor Fanny Law Fan Chiu-fun said she expects the city's real estate market to be stable next year. HONG KONG ECONOMIC JOURNAL -- Hong Kong government suspended live chicken imports from nearby Shenzhen with immediate effect after the city's first human case of H7N9 bird flu virus was confirmed late on Monday. -- Coach, Inc announced the renewal of a Memorandum of Understanding on anti-counterfeiting with Taobao Marketplace, China's most popular consumer-to-consumer online marketplace, in a bid to better protect consumer interest. -- New World Development expects to generate more than HK$10 billion from flat sales next year, a level similar to what it achieved in 2013, according to the senior management at the developer. HONG KONG ECONOMIC TIMES -- China's biggest funeral service group Fu Shou Yuan is set to sell 500 million shares in its initial public offering in Hong Kong to be launched next week, raising $200 million, according to listing document. MING PAO DAILY NEWS -- Bain Capital is cutting its stake in aseptic packaging products producer Greatview Aseptic Packaging Co Ltd, selling 68 million shares at price ranging HK$4.55-HK$4.6 each for up to HK$312 million ($40.25 million), according to a term sheet. UK The Telegraph DERIVATIVE MARKETS HAVE ALREADY UPGRADED BRITAIN TO AAA The cost of insuring British debt against default has fallen below the levels for the US, Switzerland, Japan and every major eurozone state except Germany, marking a dramatic change of view on UK's economic prospects. ALBEMARLE & BOND PUTS ITSELF UP FOR SALE Britain's second biggest pawnbroker Albemarle & Bond has put itself up for sale and said that the process includes the possibility of a takeover offer for the company although there could be no certainty that the offer will be made. The Guardian NATWEST AND RBS CARDS DECLINED DUE TO IT MELTDOWN ON MEGA MONDAY A technological banking glitch on one of the busiest online shopping days of the year left millions of shoppers unable to pay for transactions using their credit or debit cards. TRIAL BEGINS FOR FORMER BP ENGINEER ACCUSED OF DESTROYING OIL SPILL EVIDENCE Jury selection began Monday for the Justice Department's case against a former BP drilling engineer charged with deleting text messages and voicemails about the company's response to its massive 2010 oil spill in the Gulf of Mexico. The Times DEBT ADVICE SERVICE A WASTE OF MONEY, SAY FURIOUS MPS An official money advice service bankrolled by every retail financial institution in Britain is being accused by MPs of wasting a large chunk of its 81million pounds budget and paying some of its executives far too much. FIFTY YEARS ON, DIAGEO PAYS OUT TO THALIDOMIDE VICTIMS Dozens of Antipodean victims of thalidomide won a 52million pounds payout from Diageo yesterday as the British drinks company settled longstanding liabilities associated with the drug. Sky News CABLE TO NAME MORGAN AS BUSINESS BANK CHIEF A former board member of Northern Rock will this week be named as the first permanent boss of the British Business Bank, one of the Government's flagship projects for stimulating lending to smaller companies. HOUSEHOLDS RAID SAVINGS AT RECORD RATE Households are pulling money out of their savings accounts at the fastest rate in modern record, according to Bank of England figures. In the past year, families have withdrawn £23bn from their long-term savings account to convert into cash and put into current accounts. Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades AK Steel (AKS) upgraded to Neutral from Underperform at BofA/Merrill AbbVie (ABBV) upgraded to Conviction Buy from Buy at Goldman Apple (AAPL) upgraded to Buy from Neutral at UBS CACI International (CACI) upgraded to Outperform from Market Perform at Cowen DHT Holdings (DHT) upgraded to Buy from Neutral at Global Hunter FLIR Systems (FLIR) upgraded to Buy from Fair Value at CRT Capital Forest Labs (FRX) upgraded to Buy from Neutral at SunTrust Fortinet (FTNT) upgraded to Buy from Neutral at BofA/Merrill HollyFrontier (HFC) upgraded to Buy from Neutral at BofA/Merrill Liberty Property (LRY) upgraded to Outperform from Market Perform at Wells Fargo Oceaneering (OII) upgraded to Buy from Hold at Societe Generale Smith & Nephew (SNN) upgraded to Overweight from Equal Weight at Morgan Stanley Statoil (STO) upgraded to Outperform from Market Perform at Bernstein Verint Systems (VRNT) upgraded to Buy from Fair Value at CRT Capital Downgrades AMRI (AMRI) downgraded to Neutral from Buy at Sterne Agee Cobalt (CIE) downgraded to Neutral from Outperform at Credit Suisse CubeSmart (CUBE) downgraded to Neutral from Buy at SunTrust Disney (DIS) downgraded to Neutral from Buy at B. Riley Fusion-io (FIO) downgraded to Neutral from Buy at UBS HSBC (HBC) downgraded to Neutral from Buy at Nomura IMAX (IMAX) downgraded to Neutral from Buy at Goldman Myriad Genetics (MYGN) downgraded to Market Perform from Outperform at JMP Securities Pfizer (PFE) downgraded to Buy from Conviction Buy at Goldman Ship Finance (SFL) downgraded to Equal Weight from Overweight at Morgan Stanley Xcel Energy (XEL) downgraded to Neutral from Buy at Goldman Initiations Continental Resources (CLR) initiated with an Overweight at Barclays Fibrocell Science (FCSC) initiated with an Outperform at Wedbush Galectin Therapeutics (GALT) initiated with a Buy at MLV & Co. Internap (INAP) initiated with an Outperform at Raymond James Micron (MU) initiated with a Buy at Needham NMI Holdings (NMIH) initiated with an Outperform at FBR Capital New York Mortgage (NYMT) initiated with a Market Perform at JMP Securities Pattern Energy (PEGI) initiated with an Outperform at Wells Fargo QuickLogic (QUIK) initiated with a Speculative Buy at Benchmark Co. VOXX International (VOXX) initiated with an Outperform at Cowen HOT STOCKS NCR Corp. (NCR) acquired Digital Insight Corp. for $1.65B Fed hasn’t objected to revised capital plans from Goldman Sachs (GS), JPMorgan (JPM) Rio Tinto (RIO) to cut capital expenditure 20% year-on-year through FY15 Potash (POT) announced 18% workforce reduction in U.S., Canada, Trinidad Johnson Controls (JCI), Hitachi (HTHIY) announced global air conditioning JV Mondelez (MDLZ) to invest $190M in India plant QEP Resouces (QEP) to pursue a separation of its midstream business (QEPM) Oil States (OIS) acquired Quality Connector Systems, terms undisclosed EARNINGS Companies that beat consensus earnings expectations last night and today include: Thor Industries (THO), Envivio (ENVI), Shoe Carnival (SCVL), Ascena Retail (ASNA), Krispy Kreme (KKD) Companies that missed consensus earnings expectations include: Gordmans Stores (GMAN) NEWSPAPERS/WEBSITES The race to drill for oil in the U.S. is creating another boom—in sand, a key ingredient in fracking. The stocks of publicly traded companies that deal in sand have soared, including Hi-Crush Partners (HCLP) and U.S. Silica Holdings (SLCA), the Wall Street Journal reports The number of banking institutions in the U.S. dwindled to 6,891 in Q3, its lowest level since at least the Great Depression, the FDIC says, as a sluggish economy, stubbornly low interest rates and heightened regulation take their toll on the sector, the Wall Street Journal reports U.S. online sales are expected to hit $2B on "Cyber Monday," for the first time since the data firm comScore has been tracking such information, Reuters reports Less than 24 hours after Amazon (AMZN) CEO Jeff Bezos floated the idea of delivering packages via airborne drones, the notion was met with balking by the FAA and skepticism from the shipping industry. UPS (UPS) said it too has met with drone vendors and for now is content to stick to terra firma, Bloomberg reports At least three U.S. regulators--the Fed, Office of the Comptroller of the Currency and FDIC-- will meet on December 10 to adopt the final version of the Volcker rule banning banks from making speculative bets with their own money, sources say, Bloomberg reports Fiat (FIATY) and its Chinese partner are near a deal to begin producing Jeeps in China for the first time since 2006 after they compromised on the plant’s location, sources say, Bloomberg reports SYNDICATE Clovis (CLVS) files to sell 2M shares of common stock for holders Echo Therapeutics (ECTE) offers 3.23M units of shares and warrants Medallion Financial (TAXI) files to sell 2.9M shares of common stock Norwegian Cruise Line (NCLH) files to sell 22M shares for holders Regional Management (RM) files to sell 2.04M shares of common stock for holders RetailMeNot (SALE) files to sell $75M of series 1 common stock for holders Seadrill Partners (SDLP) files to sell 12.9M common units Sensata (ST) files to sell 15.5M shares of common stock Western Gas Partners (WES) files to sell 4.5M common units for limited partners
Банки Barclays, UBS и Bank of America прогнозируют снижение цен на недвижимость в Гонконге как минимум на 30% к 2015 году в связи с замедлением темпов роста доходов и повышением предложения на рынке жилья. Стоит отметить, что аналитики советуют продавать акции 8 из 14 крупнейших гонконгских компаний сферы недвижимости, в том числе Sun Hung Kai Properties, Swire Properties и New World Development.
I must admit to having a serious neck strain from the continuous shaking of my head since the proposed appointment of Janet Yellen as Federal Reserve chief mid-week. It wasn't the appointment itself, which came as no surprise. Instead, it was the investor reaction to it. Investors overwhelmingly endorsed the announcement, suggesting it would represent a continuation of the Ben Bernanke policies which had steered the U.S. toward recovery. The problem with this is in the definition of "recovery" for this is the slowest upturn from any economic slowdown in the U.S. since World War Two. If it's a sub-par recovery then surely, as a matter of simple logic, Bernanke's policies haven't been so successful. But try telling that to the investors who prefer to believe in mythology rather than facts. I suspect it's because Bernanke has been good for stocks and good for them, more so than the economy. Anyhow, it got me thinking about how institutional money, and the groupthink accompanying it, often represents dumb money. And by institutions, I not only refer to institutional investors but publicly-listed companies which aren't run by owner-operators (those with a significant amount of their wealth invested in the company). These institutions are often rewarded by short-term performance (less than three months for many investors and less than one year for listed companies). Inevitably, this leads to a herd-like mentality and silly decision-making: chasing the latest "hot" trend, acquiring companies at exorbitant prices in the name of a short-term earnings boost, buying back shares to lift near-term earnings per share and manager pay packets and so on. Unsurprisingly, under-performance is a regular result. Which leads me to several large merger and acquisition (M&A) deals happening in Hong Kong. Previously I've talked of how a number of Hong Kong billionaires were IPO'ing property assets and that was a clear warning signal for investors in this sector. Now, Asia's richest man Li Ka-Shing is offloading many Hong Kong assets in order to raise cash to buy beaten-down European companies. And two of Hong Kong's four family-owned banks are selling their businesses. It's clear that large Hong Kong insiders are madly bailing out as they see elevated valuations combined with dimming prospects for growth in the territory. And guess who the likely buyers are? Institutions/institutional investors, of course. These guys obviously know something about Hong Kong and the assets up for sale which Li Ka-Shing and his ilk don't! Today, Asia Confidential is going to look at the M&A deals in more detail, why institutions feel compelled to participate and the key takeaways for individual investors. Hong Kong insiders madly selling Li Ka-Shing isn't dubbed "superman" for nothing. He's not only proved a canny businessman but is still going strong at the ripe old age of 85. Born in China, Li's reputed to have gone to Hong Kong as a refugee. Because of his father's death, Li left school at the age of 15 to work at a plastics trading company. And he saved up enough money to start his own plastics manufacturing firm. He diversified into real estate development and eventually listed a company, Cheung Kong Holdings, in Hong Kong in 1972. The deal which put him on the map though was the takeover of Hutchison Whampoa in 1979 from HSBC. The purchase created a mammoth conglomerate with interests across Hong Kong and the world, including ports, electricity, retail and property development. Today, Li is Asia's richest man and the world's 8th wealthiest, worth close to US$31 billion. He's the world's largest operator of container terminals, among other things. The picture below is a famous wax statue of Li in Hong Kong. The big news of late is that Li is looking to sell a slew of prized Hong Kong and Chinese assets, including: Spinning off and listing pharmacy chain A.S. Watson for around US$10 billion, assuming a 25% free float and total value of US$40 billion. Watson's shares a duopoly with Mannings in the pharmacy market in Hong Kong. Selling Hong Kong supermarket operator ParknShop for around US$3.9 billion. ParknShop has a duopoly with Wellcome in the territory's supermarkets. Spinning off Hong Kong electricity operator Hongkong Electric to raise US$4.9 billion. Hongkong Electric is one of the territory's two main electricity generators. Office buildings in China - Guangzhou, Shanghai and Shenzhen - are also up for sale. These asset sales are aimed at raising cash in order to buy beaten-down telecommunications businesses in Europe. Since 2011, Li has taken advantage of the European crisis to buy four telecommunications companies there for US$4 billion in total. And he's looking to do more. He isn't the only one offloading Hong Kong assets though. Two family-owned Hong Kong banks Wing Hang Bank and Chong Hing Bank have put themselves up for sale. The former has a market value of close to US$4.5 billion while the latter's at US$1.85 billion. Also, several large Hong Kong property companies are selling down assets, including: New World Development is looking at a US$1 billion IPO of some of its hotels. Great Eagle Holdings listed its hotel arm, Langham Hotel Trust, in a US$549 million IPO in Hong Kong in late May. Hopewell Holdings pulled a US$780 million IPO of its Hong Kong property arm in June due to market volatility at that time. It's likely to pull the trigger on this soon. Reasons behind it The obvious question is: why are a who's who of Hong Kong's wealthiest selling out now? Well, Li Ka-Shing has alluded to some of the likely reasons behind the sales. This year, he's warned residential property investors in Hong Kong not to expect too much of future returns given the government's determination to stabilise prices. This followed a half a dozen measures from the Hong Kong government to slow the pace of property price growth. Li's also been remarkably candid about the potential threat from the Shanghai free trade zone to Hong Kong. The zone may allow freer yuan convertibility, liberalisation of interest rates and relaxation of restrictions on foreign investment. Li says the development will "impact Hong Kong heavily" and the territory needs to raise its competitiveness to ensure that it doesn't lose out. You can probably add a few other reasons for Hong Kong insiders selling out. The potential for U.S. tapering of stimulus is an obvious threat to Hong Kong. Hong Kong has been the one of the biggest beneficiaries from U.S. quantitative easing and low interest rates. Yield hungry investors in the West have flooded into growth markets such as Hong Kong, and catapulted property and other asset markets. For instance, residential property in Hong Kong is now the world's most expensive per square foot and yields barely above 3%. All of this could sharply reverse if tapering occurs. Also, there's the threat from a further slowdown in China and the impact that it would have on Hong Kong. Hong Kong has not only been the beneficiary of U.S. stimulus but Chinese stimulus too. As the credit bubble in China unwinds, the resultant impact on the territory may be serious. And not to mention that the Chinese have been key buyers of Hong Kong property, retail, tourism-related ventures, healthcare and so on. Finally, rising asset valuations are likely playing a part in the decisions to sell. For instance, the sale of Wing Hang Bank may fetch up to 3x book value (net asset value). That's despite the bank only achieving a 2012 return of equity (ROE) of 9.9%. In simple terms, that gives a prospective buyer a theoretical potential return of about 3.3% p.a. (9.9% ROE divided by 3x book). Given this, I'd be a seller too... Why institutions are buying The question then becomes: which institutions may be buying these assets and why would they be purchasing them? Three companies are reportedly in contention to buy ParknShop: China Resources Enterprise, Japan's Aeon and Australia's Woolworths. For Wing Hang Bank, Australia's ANZ is thought to be a frontrunner. And for Chong Hing Bank, Chinese conglomerate Yue Xiu Group is in line to buy it. The potential buyers have several things in common: All of them are not run by owner-operators. That is, they're not run by people with substantial proportions of their own wealth invested in the companies. This means the CEOs are likely to take risks that owner-operators wouldn't because they have less to lose. Almost all of them are publicly-listed. Yue Xiu isn't listed but subsidiaries are. It means most of these companies are under shareholder pressure to perform in the short-term. M&A is often perceived as an easy way to boost earnings (not returns) and improve share prices. A number of the companies are growth-starved and are desperately looking for a growth angle to excite investors. And let's face it, Hong Kong and China are still some of the sexiest growth stories going around, at least in the eyes of many institutions. As for the spin-offs of A.S. Watson and Hongkong Electric, institutional investors will be the backbone of coming IPOs. Many of these investors are also not run by owner-operators. They're also subject to the same short-term performance pressures as listed companies, if not more so. The vast majority of institutional investors are judged on performance month to month and they know they're jobs are on the line if they underperform. As you can imagine, that doesn't make for sensible, long-term decision-making. But it goes a long way to explaining why institutional investors are likely participants in the Hong Kong IPOs. They'll be looking for a short-term spike in share prices post-IPO before they cut their holdings or exit altogether. Anything to boost near-term performance... Key takeaways for individual investors From the above, here are some of the key lessons for individual investors: Institutions move in herds and often represent dumb money. Avoid blindly following them. In fact, moving in the opposite direction can pay dividends. Don't get sucked into hot investment trends like many institutions do. Institutions have to chase short-term performance and are prone to jumping on the next sexy theme, to their detriment. As an individual investor, you don't have the same short-term performance pressures and that gives you an enormous advantage over institutions. Use it. In the end, price is what matters. Institutions often ignore this; you shouldn't. Be a minority or majority shareholder in owner-operated companies or assets which may be sold to the schmucks known as institutions. This is how you can make serious money. Just ask the shareholders of the family-owned banks which are being sold in Hong Kong. This post was originally published at Asia Confidential: http://asiaconf.com/2013/10/12/institutional-money-dumb-money/
Гонконгский застройщик New World Development, контролируемый миллиардером Ченг Ю-Тунгом (Cheng Yu-tung), сообщил о росте годовой прибыли на 26% в связи с увеличением продаж недвижимости на внутреннем рынке и в Китае. Так, прибыль компании без учета некоторых статей за год с окончанием 30 июня составила HK$6,33 млрд ($816 млн) по сравнению с HK$5,02 млрд годом ранее. Аналитики, в свою очередь, в среднем прогнозировали прибыль на уровне HK$6,59 млрд.