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Morning Bamboo Insight: 29 Jul 2014

Morning Bamboo Insight: 29 Jul 2014

Macro

1. Asset bubbles could deflate global recovery

http://www.afp.com/en/news/asset-bubbles-could-deflate-global-recovery

2. The Real Raw Material of Wealth; The moral of the story is that adding value to raw materials is one path to diversification, but not necessarily a long or fruitful on

http://www.project-syndicate.org/print/ricardo-hausmann-advises-poor-countries-not-to-focus-solely-on-adding-value-to-natural-resource-exports

3. How Risk Management Can Spawn Competitive Advantage; CFOs should have the notion of competitive advantage on their minds when they consider the values and goals of their companies’ enterprise risk management

http://ww2.cfo.com/risk-management/2014/07/risk-management-can-spawn-competitive-advantage/

Asia Pacific

1. (Japan) – Abenomics Leading To Crisis? Post-‘Collective Security,’ With Support Plunging, Abe Gambles On Casinos

http://www.forbes.com/sites/stephenharner/2014/07/27/abenomics-leading-to-crisis-post-collective-security-with-support-plunging-abe-gambles-on-casinos/print/

2. (HK/China) – Two Disappearing Chairmen At Hong Kong Stock Exchange Underscore Investment, Governance Risks

http://www.forbes.com/sites/russellflannery/2014/07/27/two-disappearing-chairmen-at-hong-kong-stock-exchange-underscore-investment-governance-risks/print/

3. (China) – China’s Solution To “Property Companies Facing Huge Debt Burdens”: Much More Debt

http://www.zerohedge.com/news/2014-07-28/chinas-solution-%E2%80%9Cproperty-companies-facing-huge-debt-burdens%E2%80%9D-much-more-debt

4. (India/Tech) – Tata Consultancy Services Manages Its Size to Stay Agile; CEO Natarajan Chandrasekaran Promotes Democratic Decision-making Within Units

http://online.wsj.com/articles/tata-consultancy-services-manages-its-size-to-stay-agile-1406474692

5. (India) – New Poverty Formula Proves Test for India; Country Struggling With How To Define Poverty

http://online.wsj.com/articles/new-poverty-formula-proves-test-for-india-1406487289?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702304581004580055602538598566.html

6. (Australia/Consumer) – Solomon Lew accepts Country Road $200m offer, ending 17 year battle with South African retailer Woolworths

http://www.theage.com.au/business/retail/solomon-lew-accepts-country-road-offer-ending-17-year-battle-20140725-zwyys.html

7. (Isia) – Indonesia’s Widodo faces huge reform challenge; “The parliament is very hostile – if Jokowi wants good government, he would have to imprison half the lawmakers. He could easily be blocked by them,”

http://www.channelnewsasia.com/news/asiapacific/indonesia-s-widodo-faces/1284704.html#

8. (Korea) – S. Korean carmakers have succeeded in their game plan

http://www.thestar.com.my/Business/Business-News/2014/07/26/S-Korean-carmakers-have-succeeded-in-their-game-plan/

9. (China) – Probes and propaganda: Xi’s double strategy to consolidate power

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140728000004&cid=1101

10. (Taiwan) – Taiwan Minister presses for real estate transaction tax to prevent speculative investment in the housing market

http://www.chinapost.com.tw/print/413436.htm

11. (China) – China launches global ‘fox hunt’ for corrupt officials; Beijing vows to drive corrupt officials from their overseas refuges in a bid to save the Chinese Communist Party from extinction

http://www.telegraph.co.uk/news/worldnews/asia/china/10991255/China-launches-global-fox-hunt-for-corrupt-officials.html

12. (China) – Petitioners can no longer ‘seek the emperor’; A group of villagers from Fujian province found out the hard way that they no longer can petition the central government for help directly

http://news.asiaone.com/print/news/asia/petitioners-can-no-longer-seek-emperor

13. (China) – Chinese Corruption Probe Stretches Into Canada; Billion-Dollar Oil-Sands Project Is Left in Limbo

http://online.wsj.com/articles/chinese-corruption-probe-stretches-into-canada-1406588882

14. (Korea) – Seoul’s Economics Go Flat; Another major metropolis fails the Uber test

http://online.wsj.com/articles/seoul-s-economics-go-flat-1406566298

15. (Asean) – Asean’s Infrastructure Crisis; Leaders need to step up before inadequate infrastructure cripples the region’s economic potential

http://online.wsj.com/articles/groff-aseans-infrastructure-crisis-1406566174

Life

1. Book Review: ‘Rogue Elephant’ by Simon Denyer; The average Indian earns less than the average Chinese. But it’s in New Delhi-not Beijing-where you can call the prime minister an idiot without worrying about a knock on the door

http://online.wsj.com/articles/book-review-rogue-elephant-by-simon-denyer-1406496211

2. What The Wright Brothers Could Teach Today’s Innovators About Solving Problems

http://www.fastcodesign.com/3033613/what-the-history-of-aviation-could-teach-todays-innovators-about-solving-problems

3. European lessons for S’pore’s apprenticeship system

http://www.todayonline.com/print/717076

4. 8 Top Business Books From 2014 Summed Up In A Paragraph

http://www.valuewalk.com/2014/07/top-business-books

5. Michael Mauboussin: The True Measures Of Success

http://www.valuewalk.com/2014/07/michael-mauboussin-true-measures-success

http://cdn1.valuewalk.com/wp-content/uploads/2014/07/HBR_True-Measure-of-Success.pdf

6. Heads or Tails? Either Way, You Might Beat a Stock Picker

http://www.nytimes.com/2014/07/27/your-money/heads-or-tails-either-way-you-might-beat-a-stock-picker.html?ref=business

7. How To Get Your Confidence Back

http://www.forbes.com/sites/work-in-progress/2014/07/24/how-to-get-your-confidence-back/print/

8. Why the Last Five Years of Your Life Have Disappeared? Feel Like Time Is Flying By and You’ve Got Nothing to Show for It? There Are Scientific Reasons for That

http://www.fastcompany.com/3032980/work-smart/why-the-last-five-years-of-your-life-have-disappeared

9. The VP of Devil’s Advocacy; The tenth man. If nine of us look at the same information and arrive at the exact same conclusion, it’s the duty of the tenth man to disagree

http://techcrunch.com/2014/07/27/the-vp-of-devils-advocacy/

10. A head for Ferragamo footwear: Members of the Italian shoemaking dynasty use strict rules to protect their father’s legacy

http://www.ft.com/intl/cms/s/0/1cea2a1c-13e6-11e4-b46f-00144feabdc0.html#axzz38iqWKxc5

11. ‘Hello there’: eight lessons from Microsoft’s awful job loss memo; Elop’s job-loss announcement is a case study in how not to write, think or lead

http://www.ft.com/intl/cms/s/0/013511fa-13dd-11e4-8485-00144feabdc0.html#axzz38iqWKxc5

12. The Upside to Morning Sickness; Uncomfortable symptoms of pregnancy linked to healthier babies, study finds

http://online.wsj.com/articles/the-upside-to-morning-sickness-1406563253

13. How to Cope When You and Your Partner Are Falling out of Love; Experts say when a trait you used to adore in your partner starts driving you away, it’s a “fatal attraction”

http://online.wsj.com/articles/how-to-cope-when-you-and-your-partner-are-falling-out-of-love-1406588472

TMT

1. (India/Tech) – India prepares for ‘big bang’ in smartphone use

http://www.ft.com/intl/cms/s/0/15942a48-0e2c-11e4-85ab-00144feabdc0.html#axzz38kSdAuDS

2. Cisco CEO: Why the future of the Internet is already here

http://fortune.com/2014/07/16/cisco-ceo-why-the-future-of-the-internet-is-already-here/

3. (China/Tech) – Qualcomm’s Problems Just Got Worse As China Builds Chip Giant

http://www.forbes.com/sites/oliverbarron/2014/07/27/qualcomms-problems-just-got-worse-as-china-builds-chip-giant/print/

4. Can Reddit Grow Up? Efforts by the freewheeling online community to monetize without driving away its 114 million monthly users will require appealing to advertisers without sacrificing values like personal data privacy.

http://www.nytimes.com/2014/07/28/technology/can-reddit-grow-up.html?ref=business&_r=0

5. Tencent Holdings Gets Approval For New Private Bank; Did the New York Times Get Alibaba Excluded From China’s Private Bank Pilot?

http://www.forbes.com/sites/oliverbarron/2014/07/27/did-the-new-york-times-get-alibaba-excluded-from-chinas-private-bank-pilot/print/

http://www.forbes.com/sites/ywang/2014/07/25/tencent-holdings-gets-approval-for-new-private-bank/print/

6. (China/Tech/Healthcare) – Baidu’s Health Cloud Aims To Be The App Store For Distance Health Management

http://www.forbes.com/sites/ericxlmu/2014/07/25/baidus-health-cloud-aims-to-be-an-app-store-for-distance-health-management/print/

7. How Blynk, the fashionista of mobile apps, is stealing the startup spotlight

http://business.financialpost.com/2014/07/27/how-blynk-the-fashionista-of-mobile-apps-is-stealing-the-startup-spotlight/?__lsa=46a3-0f67

8. (Korea/Tech) – ‘Made in Korea’ revives in wearable device

http://news.mk.co.kr/breakingnews/view.php?no=1035320&year=2014&categorycode=MK400104

9. (China/Tech) – When China stops copying Western tech giants is when they should start worrying

http://qz.com/240943/when-china-stops-copying-western-tech-giants-is-when-they-should-start-worrying/

10. (Tech) – Fairchild is the Valley’s first trillion-dollar startup. It might even be the most important entrepreneurial company of the last hundred years

http://techcrunch.com/2014/07/26/the-first-trillion-dollar-startup/

11. Startups Are Finally Hacking Healthcare

http://techcrunch.com/2014/07/26/startups-are-finally-hacking-healthcare/

12. (China/Tech) – Tencent reportedly downsizing microblogging platform

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140727000094&cid=1103

13. (Taiwan/Tech) – Taiwanese companies are showing an increasing interest in building an industrial cluster to produce robots amid favorable global market conditions, but they still face challenges in integrating the supply chain

http://www.chinapost.com.tw/print/413446.htm

14. CIOs, Companies Sharpen Skills for ‘Internet of Things’ Future

http://blogs.wsj.com/cio/2014/07/28/cios-companies-sharpen-skills-for-internet-of-things-future/

15. What Amazon’s foray into 3D printing means for the industry

http://fortune.com/2014/07/28/what-amazons-foray-into-3d-printing-means-for-the-industry/

16. The Bear Case For Uber (Yes, There Is One)

http://www.forbes.com/sites/jeffbercovici/2014/07/28/the-bear-case-for-uber/print/

Consumer

1. Trendy Chipotle burritos show how pricing power belongs to the hip

http://www.reuters.com/article/2014/07/27/us-chipotle-mexican-prices-analysis-idUSKBN0FW0DE20140727

2. The girls’ construction toy taking America by storm; GoldieBlox founder Debbie Sterling is trying to quash gender norms; The toy system is based around a central character, Goldie, who “is not a genius but tries really hard”

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10994395/Goldieblox-The-girls-construction-toy-taking-America-by-storm.html

3. How the business of golf got stuck in the rough

http://business.financialpost.com/2014/07/26/how-the-business-of-golf-got-stuck-in-the-rough/

4. (China/Consumer) – Can Shenzhen handle two luxury good malls?

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140728000001&cid=1202

5. Britain’s turbulent shopping aisles; Change at Tesco reflects shifts in consumers’ behavior

http://www.ft.com/intl/cms/s/0/91ccbc9a-13f6-11e4-8485-00144feabdc0.html#axzz38iqWKxc5

6. (China/Consumer) – Safer food is an invention that should be freely copied; Stroll through a local market in China and there is little sign of quality control or hygiene

http://www.ft.com/intl/cms/s/0/1f4f5bb2-1420-11e4-b46f-00144feabdc0.html#axzz38iqWKxc5

7. Why Dollar Tree-Family Dollar Deal May Spark a Bidding War; Deal, Valued at $8.5 Billion, Comes Amid Fight for Budget-Conscious Consumers

http://dealbook.nytimes.com/2014/07/28/why-dollar-tree-family-dollar-deal-may-spark-a-bidding-war

http://online.wsj.com/articles/dollar-tree-to-buy-family-dollar-for-74-50-a-share-1406542575

http://www.businessweek.com/printer/articles/777296?type=bloomberg

8. Dollar Stores’ Growth Bill Coming Due; Together, Dollar Tree, Family Dollar and Dollar General operate about 24,000 stores, roughly one-third more than before the recession hit

http://online.wsj.com/articles/heard-on-the-street-dollar-stores-growth-bill-coming-due-1406576431

Healthcare

1. (Thai/Healthcare) – Dusit sees global room for growth; The international appeal of the Thai hospitality brand is opening opportunities for domestic chains to duplicate their success worldwide as space shrinks at home

http://www.nationmultimedia.com/business/Dusit-sees-global-room-for-growth-30239587.html

Investing Process

1. Research – Motivated Monitors: The Importance of Institutional Investors’ Portfolio Weights

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2463718

Commodities

1. Deutsche Bank, HSBC and Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver, an allegation similar to earlier suits involving the London gold fix

http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=147768&sid=42698654&con_type=1&d_str=20140728&fc=1

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About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

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