Corporate debt troubles China, bond market overtakes that of US

Updated: Monday June 23, 2014 MYT 6:54:09 AM

Corporate debt troubles China, bond market overtakes that of US

BY YAP LENG JUEN

THE fact that China is financing a quarter to a third of its corporate debt of US$14.2 trillion at the end of last year, through the shadow banking sector, is a cause of concern.

“This means that as much as 10% of global corporate debt is exposed to the risk of a contraction in China’s informal banking sector,” Standard & Poor’s (S&P) said, estimating this at US$4 trillion to US$5 trillion. Read more of this post

7-Eleven Malaysia introducing new cafe-lifestyle concept, including seating areas

Updated: Monday June 23, 2014 MYT 7:16:01 AM

7-Eleven introducing new cafe-lifestyle concept, including seating areas

BY LIZ LEE

KUALA LUMPUR: Through its plans to expand network and refurbish some selected stores, 7-Eleven Malaysia Holdings Bhd targets to introduce a new concept in 200 outlets in the next three to four years. Read more of this post

Shinzo Abe’s ‘Third Arrow’ Seeks a Hard Target in Japan

Shinzo Abe’s ‘Third Arrow’ Seeks a Hard Target in Japan

New Growth Measures Chip Around the Edges of Nation’s Economic Foundations

JACOB M. SCHLESINGER

June 22, 2014 2:09 p.m. ET

TOKYO—Prime Minister Shinzo Abe has made strides over the past year to end Japan’s long bout of debilitating deflation. He’ll announce still more measures this week designed to stir economic growth. Read more of this post

Dying Every Day: Seneca at the Court of Nero

Dying Every Day: Seneca at the Court of Nero Hardcover – Deckle Edge

by James Romm (Author)

From acclaimed classical historian, author of Ghost on the Throne (“Gripping . . . the narrative verve of a born writer and the erudition of a scholar” —Daniel  Mendelsohn) and editor of The Landmark Arrian:The Campaign of Alexander (“Thrilling” —The New York Times Book Review), a  high-stakes drama full of murder, madness, tyranny, perversion, with the sweep of history on the grand scale.
At the center, the tumultuous life of Seneca, ancient Rome’s preeminent writer and philosopher, beginning with banishment in his fifties and subsequent appointment as tutor to twelve-year-old Nero, future emperor of Rome. Controlling them both, Nero’s mother, Julia Agrippina the Younger, Roman empress, great-granddaughter of the Emperor Augustus, sister of the Emperor Caligula, niece and fourth wife of Emperor Claudius.         Read more of this post

After port fraud, China’s vast warehouse sector under scrutiny

After port fraud, China’s vast warehouse sector under scrutiny

5:15pm EDT

By Melanie Burton and Fayen Wong

SYDNEY/SHANGHAI (Reuters) – Shaken by a fraud investigation into metal financing in the world’s seventh-busiest port, banks and trading houses have been made painfully aware of the risks they face storing commodities in China’s sprawling warehouse sector.

The probe at Qingdao port centers around a private metals trading firm suspected of duplicating warehouse certificates in order to use a metal cargo multiple times to raise financing. Read more of this post

Chinese consumers switch gears from cash to credit for car buys

Chinese consumers switch gears from cash to credit for car buys

5:18pm EDT

By Samuel Shen and Umesh Desai

SHANGHAI/HONG KONG (Reuters) – In a country where owning a car has long been a symbol of luxury and success, around 85 percent of Chinese car buyers still buy cars with cash.

But people like Chinese accountant Grace Mi and her peers in their 20s and 30s are changing the car financing game and are the ones catching the attention of global carmakers looking to boost revenue and defend margins in an increasingly competitive market. Read more of this post

Key lessons from London’s bus services

Key lessons from London’s bus services

Two weeks ago, I headed to London for a trip sponsored by the Land Transport Authority (LTA) to learn about the bus system there, armed with a sceptical attitude.

BY JOY FANG –

JUNE 23

Two weeks ago, I headed to London for a trip sponsored by the Land Transport Authority (LTA) to learn about the bus system there, armed with a sceptical attitude.

London’s bus system has often made the news for the wrong reasons. Fare hikes, choking traffic and bus driver strikes — the most recent was in 2012, which was over demands for a £500 (S$1,060) Olympics bonus and brought services to a halt — often make the headlines there. Read more of this post

Solomon Lew weighs options for David Jones’ property portfolio

Solomon Lew weighs options for David Jones’ property portfolio

June 23, 2014

Carolyn Cummins

Speculation is mounting that Solomon Lew could strike a deal with the South African Woolworths group to buy the David Jones property portfolio, independently valued at $612 million.

According to property analysts, such a deal would allow Mr Lew to exit the David Jones takeover battle, where he has bought a strategic stake in the department store, which has left investors and Woolworths unsure of his intentions. Read more of this post

Rod Sims: ”I always find it irritating when people say Australia has picked all the low-hanging micro-economic reform fruit. We have not; and besides, there is never only one crop,’

Rod Sims warns on privatisation impact on competition

June 23, 2014

Brian Robins

The head of the consumer watchdog has warned that competition policy needs to be reinvigorated, with governments increasingly failing to make competition central to the privatisation of public assets.

As a result, the federal government needs to ensure the present review of competition policy, the so-called Harper review, is used to both strengthen competition policy as well as to help reinvigorate so-called ”micro-economic reform”, ongoing changes to government policy to revitalise the economy. Read more of this post

The reluctance of United Overseas Bank (UOB) to follow its local rivals in making huge bets on China looks to be paying off in the wake of the mainland’s economic slowdown

UOB’s cautious China policy paying off

Saturday, Jun 21, 2014

Rennie Whang

The Straits Times

SINGAPORE – The reluctance of United Overseas Bank (UOB) to follow its local rivals in making huge bets on China looks to be paying off in the wake of the mainland’s economic slowdown.

UOB took a cautious approach to the mainland despite the hype surrounding its rapid growth and opted instead to expand its presence in the fast-growing ASEAN region. Read more of this post

Thais hit Cambodia casinos to sidestep junta betting blitz

Thais hit Cambodia casinos to sidestep junta betting blitz

Sunday, June 22, 2014 – 13:26

AFP

POIPET, Cambodia – Desperate for a flutter during a junta crackdown on gambling at home, Thais are making a beeline for casinos in a seedy Cambodian border town – which has already been deluged by migrants also fleeing the kingdom. Read more of this post

China’s wealth management products total $2.62 tril

China’s wealth management products total $2.62 tril

Sunday, June 22, 2014 – 12:58

Reuters

BEIJING – China’s wealth management products totalled 12.8 trillion yuan (S$2.62 trillion) as of the end of May, state media said, quoting the vice central bank head. Read more of this post

Tax-driven mergers: Inverse logic; The rush of firms fleeing America for tax reasons is set to continue

Tax-driven mergers: Inverse logic; The rush of firms fleeing America for tax reasons is set to continue

Jun 21st 2014 | NEW YORK | From the print edition

AMERICA is a land of immigrants, but some of its biggest companies are keen to emigrate, driven abroad by high tax rates and America’s “worldwide” system of taxation, which grabs a share of their foreign profits. The preferred method of exit is the “tax inversion”, which uses a cross-border merger—generally one that also has some sort of industrial logic—as the pretext for reincorporating in a more tax-friendly place. Medtronic, a maker of medical devices, is the latest and largest firm to change its nationality in this way. Read more of this post

Leviathan as capitalist: State capitalism continues to defy expectations of its demise

Leviathan as capitalist: State capitalism continues to defy expectations of its demise

Jun 21st 2014 | From the print edition

IT IS now 25 years since Francis Fukuyama published “The End of History?” and ignited a firestorm of debate. Today there are many reasons for thinking that he was wrong about the universal triumph of liberalism and markets, from democracy’s failure in the Middle East to the revival of religious fundamentalism. But one of the most surprising reasons is the continuing power of the state as an economic actor: far from retiring from the business battlefield in 1989, the state merely regrouped for another advance. Read more of this post

Riding the rich, grey Chinese wave: China’s largest private-sector conglomerate has been a skilful surfer of changing business trends

Riding the rich, grey Chinese wave: China’s largest private-sector conglomerate has been a skilful surfer of changing business trends

Jun 21st 2014 | SHANGHAI | From the print edition

RETIREMENT homes can be depressing places, but Starcastle comes as a pleasant surprise. This upmarket development for pensioners in Shanghai is a joint venture between Fosun Group, a Chinese conglomerate, and Fortress Investment Group, an American private-equity firm. Visitors find a colourfully decorated apartment building filled with energetic oldies. By the entrance, a giggling gaggle admires the herbs and flowers; nearby, residents practise tai chi and calligraphy; others are in a classroom, learning to use WeChat, a mobile-messaging app.

Ask a trio chatting in the centre’s open-air café why they chose this place, which caters to people keen on living independently while still getting meals and nursing as needed, and their answers point to a powerful trend. Since time immemorial, Chinese children have been expected to take care of their aged parents—but rising incomes and shifting norms are changing things. The 93-year-old former boss of a hotel chain insists such stylish retirement homes, previously unheard of in China, are the future: “It’s very advanced, it’s convenient… and the kids stop worrying.” Read more of this post