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Goldman pushing new M&A approaches amid sharp decline in trading revenue

Goldman Sachs is trying to extricate itself from a box by thinking outside it. The Wall Street firm has set up a small team in what’s known internally as the Innovation Lab, to cook up supposedly clever ideas for big clients. The resulting acquisitions may end up destroying value for the shareholders of the companies involved, but Goldman’s own investors should be pleased the investment bank is trying new things.
Source: Global Times | 2017/10/15 19:13:39

Is the time right for bolder yuan reforms?

With risk in the equity markets having been significantly ameliorated, China’s central bank, a linchpin of reform and market opening-up for many years, is now calling for bolder reform moves to ease capital controls and make the country’s currency, the yuan, able to compete freely with other hard currencies.
Source: Global Times | 2017/10/15 19:13:39

Chinese model a better fit for post-sanction Sudan

The US announced last week that it would lift most of the toughest economic and trade sanctions on Sudan it initially imposed two decades ago, citing the country’s progress in various areas such as fighting terrorism. The decision, effective as of Thursday, has been welcomed in Sudan, with people seen on local TV holding US and Sudan national flags and cheering on the streets. This is certainly an occasion worthy of celebration. The lifting of sanctions clears the way for Sudan to be reintegrated into the global financial markets, making it easier to attract badly needed investment, as well as boosting the country’s trade and economic prospects. However, the significance of the US decision remains a topic of debate. The negative impact of the long-standing sanctions has been gradually diluted over time with friendly countries like China offering investment to help Sudan overcome its economic challenges. Moreover, Sudan has weathered a tough period in its history following the independence of South Sudan in 2011, which took away two thirds of Sudan’s oil revenue, a vital source of foreign exchange earnings. Instead of suffering a total economic collapse, which some observers had predicted, the country survived and its GDP expanded at a reasonable rate of 3.5 percent in 2016. In this sense, the removal of the US sanctions is not as timely or important as it might have been.
Source: Global Times | 2017/10/12 21:43:40

Pfizer and Glaxo may find romance over the counter with consumer goods deal

Painkillers and pile cream: These are either the recipe for a terrible night in, or a potentially good corporate deal. Pfizer, the $215 billion US drugmaker, has tasked investment banks with looking into a spinoff or sale of its consumer goods division, which makes Advil and Preparation H. New GlaxoSmithKline boss Emma Walmsley would be well placed to offer a home.
Source: Global Times | 2017/10/12 21:43:39

India has lessons to learn from China’s three-decade poverty reduction campaign

While China and India have both contributed substantially to the declining trend in global inequality in recent decades, inequality within both economies has increased sharply, the IMF said in a recent report.
Source: Global Times | 2017/10/12 21:03:40

Decoding China’s ‘holiday economy’ is no easy job

According to published statistics, China’s consumption during the National Day and Mid-Autumn Festival holidays this year from October 1-8 reached 580 billion yuan ($88 billion), surpassing expectations, with 710 million trips.
Source: Global Times | 2017/10/12 21:03:40

Huawei wins patent battles against Samsung, but the larger technology ‘war’ goes on

The patent war between Chinese smartphone maker Huawei Technologies Co and its South Korean rival Samsung Electronics Co has been in the headlines again recently, after China’s State Intellectual Property Office (SIPO) announced its latest rulings on eight cases.
Source: Global Times | 2017/10/11 20:33:39

Chinese investment spurs economic growth in Africa

In an age of austerity in mature economies and slower growth in many of the world’s emerging markets, China’s importance as an international investor is greater than ever before. In Africa – the region with the world’s fastest-growing population and youngest demographic profile – China is playing an increasingly transformative and visible role that is extending beyond that of a distant investor.
Source: Global Times | 2017/10/11 20:33:39

China’s debt problem should not be overestimated

There have been heated discussions across the globe about China’s debt level. In a recent example, the IMF’s 2017 Article IV consultation with China has drawn a lot of attention because of its forecast that the country’s non-financial sector debt as a proportion of GDP will jump to 290 percent in 2022 from last year’s 235 percent. This has added to fears that China’s debt is growing at a worrying pace.
Source: Global Times | 2017/10/11 18:43:48

HSBC’s next challenge is to resist risky expansion and grow in responsible fashion

Edmund Burke, a father of modern conservatism, emphasized the principle of gradual change over revolutionary fervor. HSBC will have demonstrated the same values if John Flint, head of retail banking and wealth management, replaces Stuart Gulliver when he steps down as chief executive next year. The consummate company man, who has spent nearly three decades at the sprawling Asia-focused lender, is awaiting approval from regulators, according to the Sunday Times. Installing Flint would continue the bank’s tradition of appointing insiders as CEO.
Source: Global Times | 2017/10/11 18:38:41

Chinese Dream linking China with the world

China is approaching a crucial moment with the 19th National Congress of the Communist Party of China (CPC) gathering in Beijing on October 18, where major decisions will be taken about governance and political strategy for the next five years. It is important to look closely at the gains achieved since the last session in 2012, and to examine with an intellectual view the implications of good governance of the CPC as it paves the way for China to lead globally in a world of uncertainties.
Source: Global Times | 2017/10/10 22:03:39

Failure to extend currency swap with China will have negative impact on South Korea

With the China-South Korea currency swap agreement scheduled to expire on Tuesday, it seems uncertain whether the deal will be extended given ongoing bilateral political tensions.
Source: Global Times | 2017/10/10 21:58:40

Private equity breaking through in Japan amid thaw in frosty attitude to buyouts

Japan is finally warming up to buyouts. The world’s third-biggest economy should be a prime hunting ground for private equity: Japanese firms make great products and are often parochial, poorly run and undervalued, offering lots of room for improvement. Yet the country has long frustrated foreign PE shops. This year offers proof things are improving.
Source: Global Times | 2017/10/10 19:48:39

Eurozone must not ignore need for reform

After a tumultuous year, politics seem to be stabilizing across Europe. Though the far-right Alternative für Deutschland (AfD) gained almost 13 percent of the vote in Germany’s recent federal election, it does not pose a serious threat to Chancellor Angela Merkel’s leadership. In France – the other pillar of the European project – President Emmanuel Macron can count on a solid parliamentary majority. And, despite the uncertainty surrounding the details of Brexit, there is little doubt that, whatever plans the EU makes, it will be doing so without the UK as a member.
Source: Global Times | 2017/10/10 19:48:39

China not too concerned about rating downgrade

There are several hundred rating agencies worldwide, most providing an admirable service for diligent managers. For a fee, within a “club of similar businesses,” the rating agent will anonymize the member’s business performance data and return their data alongside the comparative data. The diligent managers can then see how well or poorly their firm is performing. The problem for commentators is that the ratings are private, and no long-term data is available for interpretation.
Source: Global Times | 2017/10/9 21:48:40

More for China than London in Russian hydro IPO

Here comes one more way to bet on green energy. En+ Group, a company owned by Russian tycoon Oleg Deripaska which supplies electricity to and controls aluminum outfit Rusal, aims to raise $1.5 billion in a London and Moscow listing. It touts its clean, mostly Siberian hydropower, but new public investors will have little say. The cornerstone backer, a Singapore-based partner of the Chinese group that just bought into Rosneft, may see greater benefits.
Source: Global Times | 2017/10/9 21:43:39

Genuine recovery in China depends on stronger demand

According to statistics, our real GDP growth rate posted a significant decline in 2012, which actually seems to have been a turning point.
Source: Global Times | 2017/10/9 21:03:39

Chinese tourists’ spending patterns reshaping the face of the global travel sector

The eight-day National Day and Mid-Autumn Festival holidays in China, which ended on Sunday, led to an unprecedented boom in tourism, which not only boosted the economies of China and many other countries and regions, but also brought changes to global tourism.
Source: Global Times | 2017/10/9 20:58:39