Indian shares rose for a fourth consecutive session on Tuesday, boosted by Reliance Industries Ltd after Goldman Sachs raised its target price on the stock.

Goldman Sachs raised the target price on Reliance by 26 percent to 1,205 rupees and added the stock to its &lsquo;conviction list&rsquo; with a &lsquo;buy&rsquo; rating. The investment bank also expects the company&rsquo;s core earnings to double over the next three years. Reliance shares gained as much as 2 per cent.

The broader NSE Nifty was up 0.41 per cent at 10,341.05 as of 0637 GMT, while the benchmark BSE Sensex was 0.44 per cent higher at 33,507.26.

The Nifty Pharma index rose 2.2 per cent with Dr. Reddy&rsquo;s Laboratories Ltd gaining 9.65 per cent after the company got Establishment Inspection Report from the U.S. FDA for its Duvvada facility at Vishakapatnam.

Broader Asian markets were trading higher after strong German economic data boosted sentiment.

MSCI&rsquo;s broadest index of Asia-Pacific shares outside Japan was up 0.8 per cent.

&ldquo;Markets are riding on momentum and though there could be profit-booking by derivatives expiry next week, I expect Nifty to cross 10,500,&rdquo; said Krish Subramanyam, co-head - equity advisor at Altamount Capital.

Logistics firms gained after the government granted infrastructure status to the sector to help enable easy access to loans. Allcargo Logistics Ltd rose as much as 3.8 per cent.

Quess Corp Ltd surged as much as 9.5 percent after agreeing to buy a 51 per cent stake in Tata Business Support Services Ltd.

Among losers, L&amp;T Finance Holdings Ltd fell 3.9 percent after IFR reported that Citigroup is selling a 2.15 per cent stake in the company.

Indian shares rose for a fourth consecutive session on Tuesday, boosted by Reliance Industries Ltd after Goldman Sachs raised its target price on the stock

Indian shares rose for a fourth consecutive session on Tuesday, boosted by Reliance Industries Ltd after Goldman Sachs raised its target price on the stock. Goldman Sachs raised the target price on Reliance by 26 percent to 1,205 rupees and added the stock to its ‘conviction list’ with a ‘buy’ rating. The investment bank also expects the company’s core earnings to double over the next three years. Reliance shares gained as much as 2 per cent. The broader NSE Nifty was up 0.41 per cent at 10,341.05 as of 0637 GMT, while the benchmark BSE Sensex was 0.44 per cent higher at 33,507.26. The Nifty Pharma index rose 2.2 per cent with Dr. Reddy’s Laboratories Ltd gaining 9.65 per cent after the company got Establishment Inspection Report from the U.S. FDA for its Duvvada facility at Vishakapatnam. Broader Asian markets were trading higher after strong German economic data boosted sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.8 per cent. “Markets are riding on momentum and though there could be profit-booking by derivatives expiry next week, I expect Nifty to cross 10,500,” said Krish Subramanyam, co-head - equity advisor at Altamount Capital. Logistics firms gained after the government granted infrastructure status to the sector to help enable easy access to loans. Allcargo Logistics Ltd rose as much as 3.8 per cent. Quess Corp Ltd surged as much as 9.5 percent after agreeing to buy a 51 per cent stake in Tata Business Support Services Ltd. Among losers, L&T Finance Holdings Ltd fell 3.9 percent after IFR reported that Citigroup is selling a 2.15 per cent stake in the company.

Sensex rises for fourth day; Reliance, pharma lead

China will use all necessary means to defend the interests of the country and its companies against a US&nbsp;trade investigation, a spokesman for the Ministry of Commerce said on Thursday.

The ministry on Monday expressed &quot;strong dissatisfaction&quot; with the US&nbsp;launch of the probe into China&#39;s alleged theft of US&nbsp;intellectual property, calling it &quot;irresponsible&quot;.

The probe is the Trump administration&#39;s first direct measure against Chinese trade practices, which the White House and US&nbsp;business groups say are bruising American industry.

&quot;We will take all the necessary measures to resolutely defend the interests of China and Chinese firms&quot; in the face of the unilateral US&nbsp;actions, commerce ministry official Gao Feng told reporters at a regular news conference.

Gao also said that China&#39;s support for overseas investment by Chinese firms will not change, but that oversight of deals will increase and projects related to China&#39;s Belt and Road initiative will be given priority.

China&#39;s cabinet released guidelines to manage overseas investments, with certain sectors encouraged and others restricted or banned outright.

Mergers and acquisitions by Chinese companies in countries linked to the Belt and Road initiative have been growing at a rapid rate, even as the government takes aim at China&#39;s acquisitive conglomerates to restrict capital outflows.

&quot;We will further improve the overseas investment reporting management system,&quot; said Gao, adding China would push forward legislation to govern foreign investment.

The probe is the Trump administration's first direct measure against Chinese trade practices, which the White House and U.S. business groups say are bruising American industry

China will use all necessary means to defend the interests of the country and its companies against a US trade investigation, a spokesman for the Ministry of Commerce said on Thursday. The ministry on Monday expressed "strong dissatisfaction" with the US launch of the probe into China's alleged theft of US intellectual property, calling it "irresponsible". The probe is the Trump administration's first direct measure against Chinese trade practices, which the White House and US business groups say are bruising American industry. "We will take all the necessary measures to resolutely defend the interests of China and Chinese firms" in the face of the unilateral US actions, commerce ministry official Gao Feng told reporters at a regular news conference. Gao also said that China's support for overseas investment by Chinese firms will not change, but that oversight of deals will increase and projects related to China's Belt and Road initiative will be given priority. China's cabinet released guidelines to manage overseas investments, with certain sectors encouraged and others restricted or banned outright. Mergers and acquisitions by Chinese companies in countries linked to the Belt and Road initiative have been growing at a rapid rate, even as the government takes aim at China's acquisitive conglomerates to restrict capital outflows. "We will further improve the overseas investment reporting management system," said Gao, adding China would push forward legislation to govern foreign investment.

Beijing dissatisfied over US probe into China's alleged theft of intellectual property

India features among top six for global executives when it comes to overall growth prospects over the next 12 months, but enthusiasm for investing in the country has dropped from three years ago, finds out a survey.

According to the annual global CEO survey of consultancy giant PwC, released at the WEF annual meeting, the top two markets from the growth point of view are the US, as voted by 43 per cent of respondents, followed by China which received&nbsp;33 per cent votes.

Others in the pecking order are Germany (17 per cent), UK (15 per cent), Japan (8 per cent) and India (7 per cent).

Last year, India was among the top five most promising markets globally.

&quot;Over time, CEOs have become less enthusiastic about India perhaps because structural reforms have been slow to come (and there have been recent short-term difficulties with its rupee conversion programme),&quot; the survey noted.

It further said &quot;nevertheless, it still stands out for its robust growth and monetary and fiscal reforms&quot;.

As per the findings, the changeability of markets, exacerbated by currency volatility, has caused CEOs to turn to a greater mix of countries. This year&#39;s study shows that the US, Germany and the UK have become bigger priorities while willingness to invest in Brazil, India, Russia and Argentina has lessened from three years ago.

CEOs around the world feel they have plenty to worry about in the year ahead. Their confidence in companies&#39; growth prospects and the&nbsp;outlook for the global economy are back on the rise.&nbsp;Globally, 38 per cent of CEOs are very confident about their companies&#39; growth prospects in the next 12 months while 29 per cent believe that global economic growth will pick up in 2017.

While business leaders are more positive in their outlook, their levels of concern about economic uncertainty, over-regulation and availability of key skills remain very high.&nbsp;Also, worries about protectionism are growing, with 59 per cent of CEOs concerned about protectionism, whereas the figure stands at 64 per cent in the United States and Mexico.

&quot;Despite a tumultuous 2016, CEO confidence is moving back up - albeit slowly and still a long way from the levels we saw back in 2007. But there are signs of optimism right across the globe, including in the UK and US, where despite predictions of a Trump slump and a Brexit exit, CEOs&#39; confidence in their company&#39;s growth are up from 2016,&quot; said Bob Moritz, Global Chairman, PwC.

A significant 71 per cent of India&#39;s CEOs are very confident of their companies&#39; growth in the next 12 months, a 7-point increase over last year&#39;s and 33 points above this year&#39;s global average (38 per cent).

&quot;Confidence in the Indian economy is reflected in the optimism of Indian CEOs in their company&#39;s growth. It re-instates India&#39;s growth story, backed by the government&#39;s reform agenda. Availability of key skills and disruption caused by technology continues to be a concern,&quot; PwC India Chairman Shyamal Mukherjee said.&nbsp;

(PTI)&nbsp;

According to a survey, the top two markets from the growth point of view are the US followed by China

India features among top six for global executives when it comes to overall growth prospects over the next 12 months, but enthusiasm for investing in the country has dropped from three years ago, finds out a survey. According to the annual global CEO survey of consultancy giant PwC, released at the WEF annual meeting, the top two markets from the growth point of view are the US, as voted by 43 per cent of respondents, followed by China which received 33 per cent votes. Others in the pecking order are Germany (17 per cent), UK (15 per cent), Japan (8 per cent) and India (7 per cent). Last year, India was among the top five most promising markets globally. "Over time, CEOs have become less enthusiastic about India perhaps because structural reforms have been slow to come (and there have been recent short-term difficulties with its rupee conversion programme)," the survey noted. It further said "nevertheless, it still stands out for its robust growth and monetary and fiscal reforms". As per the findings, the changeability of markets, exacerbated by currency volatility, has caused CEOs to turn to a greater mix of countries. This year's study shows that the US, Germany and the UK have become bigger priorities while willingness to invest in Brazil, India, Russia and Argentina has lessened from three years ago. CEOs around the world feel they have plenty to worry about in the year ahead. Their confidence in companies' growth prospects and the outlook for the global economy are back on the rise. Globally, 38 per cent of CEOs are very confident about their companies' growth prospects in the next 12 months while 29 per cent believe that global economic growth will pick up in 2017. While business leaders are more positive in their outlook, their levels of concern about economic uncertainty, over-regulation and availability of key skills remain very high. Also, worries about protectionism are growing, with 59 per cent of CEOs concerned about protectionism, whereas the figure stands at 64 per cent in the United States and Mexico. "Despite a tumultuous 2016, CEO confidence is moving back up - albeit slowly and still a long way from the levels we saw back in 2007. But there are signs of optimism right across the globe, including in the UK and US, where despite predictions of a Trump slump and a Brexit exit, CEOs' confidence in their company's growth are up from 2016," said Bob Moritz, Global Chairman, PwC. A significant 71 per cent of India's CEOs are very confident of their companies' growth in the next 12 months, a 7-point increase over last year's and 33 points above this year's global average (38 per cent). "Confidence in the Indian economy is reflected in the optimism of Indian CEOs in their company's growth. It re-instates India's growth story, backed by the government's reform agenda. Availability of key skills and disruption caused by technology continues to be a concern," PwC India Chairman Shyamal Mukherjee said. (PTI)

Investment in India has dropped in the past three years: Survey

British Prime Minister Theresa May&#39;s three-day visit to India will begin Sunday night in an attempt to strengthen trade ties with the country in her first bilateral trade trip since taking office.

May&#39;s office said the visit would focus on breaking down barriers to trade and investment and paving the way for a free trade deal as soon as possible after Brexit, news agency Reuters reported.

&quot;It matters now more than ever. India is the fastest-growing major economy,&quot; an Indian government official said, explaining why India was chosen.

&quot;One of our most important and closest friends has to be India, a leading power in the world, with whom we share so much history, culture and so may values, and which is led by a Prime Minister who is undertaking a far-reaching programme of reform,&quot; May wrote in an article published in the Sunday Telegraph.

&quot;This is a partnership about our shared security and shared prosperity. It is a partnership of potential. And on this visit I intend to harness that potential, rebooting an age-old relationship,&quot; she said in a statement ahead of the visit, reported Reuters.

The British premier will meet with Prime Minister Narendra Modi tomorrow. May, accompanied by trade ministers Liam Fox and Greg Hands and around 40 business representatives mainly from small- and medium-sized technology and healthcare firms, will address a technology summit, have a working lunch with Indian Prime Minister Narendra Modi and meet businesses, Reuters said.

&quot;I will be using this visit to reaffirm the importance of the strategic partnership we already have, which delivers huge benefits for both our countries, and to work with Prime Minister Modi to agree concrete steps to realise our shared vision of going even further in our cooperation across trade, investment, defence and security,&quot; said the 60-year-old leader of the conservative party, Press Trust of India reported.

Britain cannot sign trade deals with third countries until it exits from the European Union. However, the government is keen to hold preparatory discussions.

&quot;There is a great deal we can do right now to break down barriers to trade, open up new markets for British businesses and prepare the ground for ambitious free trade agreements once we have left the EU,&quot; May said.&nbsp;

A British official refuted the arguement that Britain can sign deals only if it leaves the EU.

&quot;Turkey is in the customs union but has trade agreements with third countries,&quot; the official said.

May will visit New Delhi and Bengaluru during her visit. A total of 1,370 jobs in the UK are expected to be created through the commercial deals signed during the trip, may&#39;s office said.

Turkey has free trade agreements with 18 countries including in Asia, north Africa and South America, while another 12 including Japan and Mexico are actively under discussion, according to the Turkish economy ministry website, reported Reuters.

(With inputs from agencies)

May's office said the visit would focus on breaking down barriers to trade and paving the way for a free trade deal soon after Brexit

British Prime Minister Theresa May's three-day visit to India will begin Sunday night in an attempt to strengthen trade ties with the country in her first bilateral trade trip since taking office. May's office said the visit would focus on breaking down barriers to trade and investment and paving the way for a free trade deal as soon as possible after Brexit, news agency Reuters reported. "It matters now more than ever. India is the fastest-growing major economy," an Indian government official said, explaining why India was chosen. "One of our most important and closest friends has to be India, a leading power in the world, with whom we share so much history, culture and so may values, and which is led by a Prime Minister who is undertaking a far-reaching programme of reform," May wrote in an article published in the Sunday Telegraph. "This is a partnership about our shared security and shared prosperity. It is a partnership of potential. And on this visit I intend to harness that potential, rebooting an age-old relationship," she said in a statement ahead of the visit, reported Reuters. The British premier will meet with Prime Minister Narendra Modi tomorrow. May, accompanied by trade ministers Liam Fox and Greg Hands and around 40 business representatives mainly from small- and medium-sized technology and healthcare firms, will address a technology summit, have a working lunch with Indian Prime Minister Narendra Modi and meet businesses, Reuters said. "I will be using this visit to reaffirm the importance of the strategic partnership we already have, which delivers huge benefits for both our countries, and to work with Prime Minister Modi to agree concrete steps to realise our shared vision of going even further in our cooperation across trade, investment, defence and security," said the 60-year-old leader of the conservative party, Press Trust of India reported. Britain cannot sign trade deals with third countries until it exits from the European Union. However, the government is keen to hold preparatory discussions. "There is a great deal we can do right now to break down barriers to trade, open up new markets for British businesses and prepare the ground for ambitious free trade agreements once we have left the EU," May said. A British official refuted the arguement that Britain can sign deals only if it leaves the EU. "Turkey is in the customs union but has trade agreements with third countries," the official said. May will visit New Delhi and Bengaluru during her visit. A total of 1,370 jobs in the UK are expected to be created through the commercial deals signed during the trip, may's office said. Turkey has free trade agreements with 18 countries including in Asia, north Africa and South America, while another 12 including Japan and Mexico are actively under discussion, according to the Turkish economy ministry website, reported Reuters. (With inputs from agencies)

British PM Theresa May to boost trade ties with India during three-day-visit

Britain&#39;s vote to leave the European Union raises &quot;longer-term concerns&quot; about global growth at a time of already weak economic output, US President Barack Obama said today. 
 
&quot;I think there are some genuine, longer-term concerns about global growth if, in fact, Brexit goes through and that freezes the possibilities of investment in Great Britain or in Europe as a whole,&quot; Obama said, speaking at a North American leaders summit.&nbsp; 
 
&quot;At a time when global growth rates were weak already, this doesn&#39;t help,&quot; he said. 
 
However, the US President, after meeting his Canadian and Mexican counterparts, expressed confidence in the global financial system&#39;s resilience as markets rebounded on Wednesday from post-Brexit losses following a bruising two-day rout. 
 
&quot;Given the vote of the United Kingdom to leave the European Union, our economic teams are going to continue to work together so that we remain focused on keeping our economies growing and making sure that the global financial system is stable,&quot; Obama said. 
 
Both Obama and Canadian Prime Minister Justin Trudeau had made clear their desire to see Britain remain in the 28-member bloc and the fallout from the Brexit was high on their agenda in Ottawa. 
 
(AFP)

Obama pledged to work with other nations to keep the economic system growing and stable

Britain's vote to leave the European Union raises "longer-term concerns" about global growth at a time of already weak economic output, US President Barack Obama said today. "I think there are some genuine, longer-term concerns about global growth if, in fact, Brexit goes through and that freezes the possibilities of investment in Great Britain or in Europe as a whole," Obama said, speaking at a North American leaders summit. "At a time when global growth rates were weak already, this doesn't help," he said. However, the US President, after meeting his Canadian and Mexican counterparts, expressed confidence in the global financial system's resilience as markets rebounded on Wednesday from post-Brexit losses following a bruising two-day rout. "Given the vote of the United Kingdom to leave the European Union, our economic teams are going to continue to work together so that we remain focused on keeping our economies growing and making sure that the global financial system is stable," Obama said. Both Obama and Canadian Prime Minister Justin Trudeau had made clear their desire to see Britain remain in the 28-member bloc and the fallout from the Brexit was high on their agenda in Ottawa. (AFP)

Brexit raises 'genuine concerns' for long-term global growth: Obama

In delaying its IPO by two years, Japanese messaging app company Line Corp bought time to correct weak financial reporting controls, work on its business plan, bolster staffing - and left billions of dollars on the table as its valuation shrivelled. 
 
Line&#39;s initial public offering in the next three weeks is set to raise about $1 billion, which given a global drought of such deals could make it the biggest tech listing this year, but sceptical fund managers point to tepid growth in Line&#39;s home market and doubts about its prospects for regional expansion. They also question whether its advertising revenue strategy will work. 
 
In seeking to earn more from its major Asian markets of Japan, Thailand, Indonesia and Taiwan, Line will try to generate more revenue from services such as advertising and offer more localized products, its IPO filing said. 
 
The bulk of Line&#39;s revenue comes from games and sales of emojis and electronic stickers, including Brown the bear and Cony, his flatulent rabbit girlfriend. 
 
&quot;Localisation of the service, of the marketing, of the stickers that we provide - this is very important,&quot; CEO Takeshi Idezawa told Reuters in April. 
 
Fund managers who have watched Line&#39;s growth slow in a crowded global messaging app market assess the plan with caution. 
 
&quot;I&#39;m not interested,&quot; said Yasuo Sakuma, portfolio manager at Bayview Asset Management, which manages 270 billion yen ($2.64 billion). &quot;Its growth outlook is very poor.&quot; 
 
&quot;Among the four countries that it&#39;s focusing on, only Indonesia has big room for growth in use,&quot; he added. &quot;Even there, the business outlook is not that easy.&quot; 
 
Growth in Line&#39;s monthly active users has tailed off after tripling across the world over the past three years. Last year, user numbers rose just 13 million to 218 million at the end of March, the IPO filing showed. The company isn&#39;t providing much visibility about the future either - it says in its filing that limited operating history makes it &quot;difficult&quot; to forecast future results. 
 
Globally, Line is the seventh-most used messenger app, data from researcher Statista shows, behind the likes of Facebook&#39;s WhatsApp and Tencent&#39;s WeChat. 
 
Earthquake Aftermath 
 
The company will fix its IPO price range on Monday. There is no change to the listing&#39;s schedule following Britain&#39;s vote to leave the European Union, a Line spokeswoman said on Friday. 
 
The dual New York and Tokyo listing, set for July 14-15, would value Line at about 588 billion yen ($5.75 billion) and make it the country&#39;s largest listing since Japan Post&#39;s $12 billion offering last year. 
 
Line&#39;s likely valuation is far less than the $10 billion-$20 billion that was expected by investors when South Korean parent Naver Corp previously talked of a Line listing in 2013-2014, although Line may not have had much choice but to wait. 
 
Line declined to comment, citing a media blackout period ahead of the IPO. 
 
Line&#39;s messaging app was launched as NHN Japan in the aftermath of Japan&#39;s 2011 earthquake and tsunami to overcome downed communications, growing unexpectedly to become the country&#39;s dominant mobile messaging platform over the next few years. 
 
However, in that period, it identified what it described in its IPO filing as &quot;material weaknesses&quot; in controls over financial reporting. 
 
Line has now tightened board and management approval for major transactions, it said in its prospectus, and crafted a strategy focusing on Japan, Thailand, Indonesia and Taiwan, which account for more than half its users. 
 
Line has also bolstered staff numbers by recruiting over 750 workers between December 2014 and March, its IPO filing shows, with designers and engineers among the recruits. It has around 2,540 full-time employees. 
 
Pushed as value pay 
 
Idezawa, who became Line&#39;s chief executive in March last year, has been key to tightened procedures, a person familiar with the matter said. Idezawa is known for his strictness on compliance-related matters, the person added. 
 
Idezawa was previously chief executive of, internet company Livedoor, joining that company a year after it was hit by a high-profile 2006 accounting scandal. 
 
&quot;When Line was first seriously considering an IPO around 2013, the overall company was pretty disorganised,&quot; said a person involved in the IPO. &quot;It was very much still a venture in terms of mindset. So a lot of people were hired to strengthen the company.&quot; 
 
Line has pitched its IPO to investors in terms of value and steady returns instead of explosive growth potential. 
 
While that story has been met favourably by Japan&#39;s risk-averse retail investors - Tokyo brokerages including Daiwa Securities say retail investors have shown strong interest in Line shares - fund managers are wary of Line&#39;s ad-driven growth push. 
 
&quot;I went to the company&#39;s meeting with investors... but nothing moved me,&quot; said a fund manager at a major Japanese asset management firm who declined to be named because of company rules against discussing individual shares. &quot;It&#39;s not clear how it can make money out of its advertisement business.&quot; 
 
(Reuters)

Line's likely valuation is far less than the $10 billion-$20 billion that was expected by investors

In delaying its IPO by two years, Japanese messaging app company Line Corp bought time to correct weak financial reporting controls, work on its business plan, bolster staffing - and left billions of dollars on the table as its valuation shrivelled. Line's initial public offering in the next three weeks is set to raise about $1 billion, which given a global drought of such deals could make it the biggest tech listing this year, but sceptical fund managers point to tepid growth in Line's home market and doubts about its prospects for regional expansion. They also question whether its advertising revenue strategy will work. In seeking to earn more from its major Asian markets of Japan, Thailand, Indonesia and Taiwan, Line will try to generate more revenue from services such as advertising and offer more localized products, its IPO filing said. The bulk of Line's revenue comes from games and sales of emojis and electronic stickers, including Brown the bear and Cony, his flatulent rabbit girlfriend. "Localisation of the service, of the marketing, of the stickers that we provide - this is very important," CEO Takeshi Idezawa told Reuters in April. Fund managers who have watched Line's growth slow in a crowded global messaging app market assess the plan with caution. "I'm not interested," said Yasuo Sakuma, portfolio manager at Bayview Asset Management, which manages 270 billion yen ($2.64 billion). "Its growth outlook is very poor." "Among the four countries that it's focusing on, only Indonesia has big room for growth in use," he added. "Even there, the business outlook is not that easy." Growth in Line's monthly active users has tailed off after tripling across the world over the past three years. Last year, user numbers rose just 13 million to 218 million at the end of March, the IPO filing showed. The company isn't providing much visibility about the future either - it says in its filing that limited operating history makes it "difficult" to forecast future results. Globally, Line is the seventh-most used messenger app, data from researcher Statista shows, behind the likes of Facebook's WhatsApp and Tencent's WeChat. Earthquake Aftermath The company will fix its IPO price range on Monday. There is no change to the listing's schedule following Britain's vote to leave the European Union, a Line spokeswoman said on Friday. The dual New York and Tokyo listing, set for July 14-15, would value Line at about 588 billion yen ($5.75 billion) and make it the country's largest listing since Japan Post's $12 billion offering last year. Line's likely valuation is far less than the $10 billion-$20 billion that was expected by investors when South Korean parent Naver Corp previously talked of a Line listing in 2013-2014, although Line may not have had much choice but to wait. Line declined to comment, citing a media blackout period ahead of the IPO. Line's messaging app was launched as NHN Japan in the aftermath of Japan's 2011 earthquake and tsunami to overcome downed communications, growing unexpectedly to become the country's dominant mobile messaging platform over the next few years. However, in that period, it identified what it described in its IPO filing as "material weaknesses" in controls over financial reporting. Line has now tightened board and management approval for major transactions, it said in its prospectus, and crafted a strategy focusing on Japan, Thailand, Indonesia and Taiwan, which account for more than half its users. Line has also bolstered staff numbers by recruiting over 750 workers between December 2014 and March, its IPO filing shows, with designers and engineers among the recruits. It has around 2,540 full-time employees. Pushed as value pay Idezawa, who became Line's chief executive in March last year, has been key to tightened procedures, a person familiar with the matter said. Idezawa is known for his strictness on compliance-related matters, the person added. Idezawa was previously chief executive of, internet company Livedoor, joining that company a year after it was hit by a high-profile 2006 accounting scandal. "When Line was first seriously considering an IPO around 2013, the overall company was pretty disorganised," said a person involved in the IPO. "It was very much still a venture in terms of mindset. So a lot of people were hired to strengthen the company." Line has pitched its IPO to investors in terms of value and steady returns instead of explosive growth potential. While that story has been met favourably by Japan's risk-averse retail investors - Tokyo brokerages including Daiwa Securities say retail investors have shown strong interest in Line shares - fund managers are wary of Line's ad-driven growth push. "I went to the company's meeting with investors... but nothing moved me," said a fund manager at a major Japanese asset management firm who declined to be named because of company rules against discussing individual shares. "It's not clear how it can make money out of its advertisement business." (Reuters)

Line struggles to demonstrate its growth plan

The China-led Asian Infrastructure Investment Bank (AIIB) will be different from institutions like the World Bank because it has a greater understanding of the developing world&#39;s needs, officials said on Sunday at its first annual meeting. 
 
Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. 
 
The AIIB, which intends to invest $1.2 billion this year, has said it is aiming to meet international standards of governance, though some members say there is still work to be done. 
 
Speaking on the final day of the bank&#39;s inaugural annual meeting, Chinese Finance Minister Lou Jiwei said the AIIB needed to establish its niche. 
 
&quot;The AIIB needs to establish its comparative advantage relative to existing multilateral development banks like the World Bank,&quot; Lou said. 
 
&quot;Compared with the Asian Development Bank, World Bank and other multilateral development banks, the AIIB&#39;s advantage lies in its keener understanding of the successful experience and lessons of developing countries&#39; years of development.&quot; 
 
The AIIB&#39;s board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for reconstruction and development. 
 
The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. 
 
AIIB President Jin Liqun said it was the focus on infrastructure that specifically marked out the bank as different and that they were committed to the concept of international best practice. 
 
&quot;The question is, how do you define international best practice? I will not agree to anything which could be considered international best practice unless this kind best practice incorporates the development experience of China and many countries in Asia and elsewhere over the last three or four decades,&quot; Jin said. 
 
&quot;So our bank would like to have the development experience, the so-called international best practice, reflecting the experience of China, India (and) so many countries in Asia. So we should have a different model of development.&quot; 
 
The AIIB is also looking to expand its numbers this year and will take applications for new members through the end of September. 
 
(Reuters)

The Asian Infrastructure Investment Bank's board approved its first four deals worth $509 million for reconstruction and development

The China-led Asian Infrastructure Investment Bank (AIIB) will be different from institutions like the World Bank because it has a greater understanding of the developing world's needs, officials said on Sunday at its first annual meeting. Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. The AIIB, which intends to invest $1.2 billion this year, has said it is aiming to meet international standards of governance, though some members say there is still work to be done. Speaking on the final day of the bank's inaugural annual meeting, Chinese Finance Minister Lou Jiwei said the AIIB needed to establish its niche. "The AIIB needs to establish its comparative advantage relative to existing multilateral development banks like the World Bank," Lou said. "Compared with the Asian Development Bank, World Bank and other multilateral development banks, the AIIB's advantage lies in its keener understanding of the successful experience and lessons of developing countries' years of development." The AIIB's board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for reconstruction and development. The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. AIIB President Jin Liqun said it was the focus on infrastructure that specifically marked out the bank as different and that they were committed to the concept of international best practice. "The question is, how do you define international best practice? I will not agree to anything which could be considered international best practice unless this kind best practice incorporates the development experience of China and many countries in Asia and elsewhere over the last three or four decades," Jin said. "So our bank would like to have the development experience, the so-called international best practice, reflecting the experience of China, India (and) so many countries in Asia. So we should have a different model of development." The AIIB is also looking to expand its numbers this year and will take applications for new members through the end of September. (Reuters)

China praises AIIB's greater understanding of developing world

The Asian Infrastructure Investment Bank (AIIB) stressed its independence from China at its first annual meeting today, saying it plans to cooperate with other development banks and add new members, including Hong Kong.&nbsp; 
 
Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region.&nbsp; 
 
The AIIB, which intends to invest $1.2 billion this year, said it is aiming to meet international standards of governance, although some members say there is still work to be done.&nbsp; 
 
And in response to concern that China, its biggest backer, will dominate, the AIIB said it answers to all its shareholders. 
 
&quot;China as much as other shareholders has been very supportive of the governance standards that we&#39;re setting and of the transparency around the bank&#39;s operations,&quot; AIIB vice president Danny Alexander said. 
 
AIIB&#39;s board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development.&nbsp; 
 
The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. 
 
&quot;We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year,&quot; said AIIB President Jin Liqun. 
 
It is crucial for the AIIB to comply with multilateral agency procedures and rules, Chinese Vice-Premier Zhang Gaoli, said at the opening ceremony for AIIB&#39;s annual meeting.&nbsp; 
 
&quot;AIIB should learn from the successful experience of other multilateral agencies and forge close partnership with the World Bank, Asian Development Bank and other institutions,&quot; he said, a commitment which was echoed by the AIIB&#39;s Jin. 
 
The bank, with only 38 full-time staff, needs organization and procedures to be fleshed out, say members.&nbsp; 
 
&quot;The roles of the management and the Board should be more clearly defined. Over the past six months, the basic framework for operation took shape, but there is still much to be done,&quot; Korean finance minister and AIIB governor Ilho Yoo said, adding that it needs to develop its environmental and social framework.&nbsp; 
 
The bank&#39;s lean operation and flexibility as a new organization was a positive for the European Bank for Reconstruction and Development (EBRD), which is partnering on one of AIIB`s first deals.&nbsp; 
 
&quot;What impresses me is the efficiency they go about things. AIIB is a natural partner because they are willing and able to take risk, such as going into private public partnership structures,&quot; said Thomas Maier, the EBRD&#39;s managing director for infrastructure. 
 
Zhang also said that China will contribute $50 million to a new fund set up by the AIIB to support member countries with project preparations.&nbsp; 
 
The AIIB is looking to expand its numbers this year and will take applications for new members through the end of September. 
 
Hong Kong, despite being a special administrative region of China, has applied for membership, and Jin said he is confident Hong Kong will soon be a full member of the bank.&nbsp; 
 
Beijing has been looking for ways to support Hong Kong, which has been convulsed by political turmoil.&nbsp; 
 
(Reuters)

China, the biggest funder, addresses concern that it'll dominate the bank by insisting it's accountable to all shareholders

The Asian Infrastructure Investment Bank (AIIB) stressed its independence from China at its first annual meeting today, saying it plans to cooperate with other development banks and add new members, including Hong Kong. Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. The AIIB, which intends to invest $1.2 billion this year, said it is aiming to meet international standards of governance, although some members say there is still work to be done. And in response to concern that China, its biggest backer, will dominate, the AIIB said it answers to all its shareholders. "China as much as other shareholders has been very supportive of the governance standards that we're setting and of the transparency around the bank's operations," AIIB vice president Danny Alexander said. AIIB's board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development. The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. "We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year," said AIIB President Jin Liqun. It is crucial for the AIIB to comply with multilateral agency procedures and rules, Chinese Vice-Premier Zhang Gaoli, said at the opening ceremony for AIIB's annual meeting. "AIIB should learn from the successful experience of other multilateral agencies and forge close partnership with the World Bank, Asian Development Bank and other institutions," he said, a commitment which was echoed by the AIIB's Jin. The bank, with only 38 full-time staff, needs organization and procedures to be fleshed out, say members. "The roles of the management and the Board should be more clearly defined. Over the past six months, the basic framework for operation took shape, but there is still much to be done," Korean finance minister and AIIB governor Ilho Yoo said, adding that it needs to develop its environmental and social framework. The bank's lean operation and flexibility as a new organization was a positive for the European Bank for Reconstruction and Development (EBRD), which is partnering on one of AIIB`s first deals. "What impresses me is the efficiency they go about things. AIIB is a natural partner because they are willing and able to take risk, such as going into private public partnership structures," said Thomas Maier, the EBRD's managing director for infrastructure. Zhang also said that China will contribute $50 million to a new fund set up by the AIIB to support member countries with project preparations. The AIIB is looking to expand its numbers this year and will take applications for new members through the end of September. Hong Kong, despite being a special administrative region of China, has applied for membership, and Jin said he is confident Hong Kong will soon be a full member of the bank. Beijing has been looking for ways to support Hong Kong, which has been convulsed by political turmoil. (Reuters)

China-backed AIIB seeks cooperation and new members, beyond 57 founding countries

With 51.9 per cent of the voters in the UK referendum voting for Brexit, the EU economy will have to gear up for massive changes

The European Union's chief concerns over Britain's vote to leave the group are political, but losing its second-largest economy will have a huge economic impact as well. Below are some of the main economic risks and benefits for the EU's remaining 27 members. BUDGET/ECONOMY Other members will have to fill in at least some of the shortfall from a lack of its contributions. Britain's total contribution to the EU budget for 2016 has been set at 19.4 billion euros ($21.4 billion), including its rebate and customs duties. It receives about 7 billion euros, mainly agricultural and regional subsidies, leaving a gap to fill of just over 5 per cent of the total EU budget. Germany, the EU's largest member, would inevitably have to provide the most extra cash. Germany's Ifo institute estimates that would be 2.5 billion euros. UniCredit says there would be manageable negatives for the euro zone, with a trade impact, a financial flight to safety and uncertainty possibly leading to tighter financial conditions and postponed investment. It would revise down its 2017 forecast for GDP to 0.5-1.0 per cent from the current 1.6 per cent. TRADE The rest of the European Union has a trade surplus of around 100 billion euros in goods with Britain, while Britain exports some 20 billion euros more in services than it imports, the same gap as for financial services. Many economists forecast Brexit would at least temporarily reduce UK growth, uncertainty hitting domestic demand and weakening the pound, with a resultant impact on EU goods exports to Britain, which make up some 2.6 per cent of rest-EU GDP in 2014. A UK "demand shock", linked also to a possible reintroduction of import tariffs, of 10 per cent could lead to a reduction of rest-EU GDP by 0.26 per cent. Brexit campaigners say the EU would want to agree a free trade deal with Britain even if the country left the bloc. However, Oliver Schulz, an economist at Citi, reasons that could play more into the hands of the EU given there tends to be more focus in trade deals on goods than on services, and financial services in particular. Switzerland, where financial services are a larger share of GDP than in Britain, has no general access to EU financial service markets and runs a financial services trade deficit with the bloc. The EU's main service export to Britain, tourism, is unlikely to be affected. INVESTMENT The United Kingdom is consistently the largest recipient of foreign direct investment in the European Union, according to UNCTAD data, with an average of some $56 billion per year in the 2010-2014 period. EU partners supply just under half of this. Some 72 per cent of investors in an EY study in 2015 cited access to the European single market as important to the UK's attractiveness to FDI. There is a risk some FDI would be diverted to other EU countries if Britain lost access to the EU single market. MIGRATION One of the main arguments for Brexit campaigners is to limit migration of workers from other EU countries, even though both Norway and Switzerland have had to accept free movement of people in return for access to EU internal markets. If Britain did cap immigration, it could have a negative impact on eastern European countries, from which some 1.2 million workers were in Britain in late 2015. The impact could be most acute in the countries with the most citizens in Britain - Poland (853,000 in 2014), Romania (175,000) and Lithuania (155,000). By contrast, other affluent western European countries, such as Germany, could as a result see higher inflows of EU migrants. This might be beneficial economically, if politically difficult. IRELAND, BENELUX HIT HARDEST? Research by the Bertelsmann Foundation sought to break down the impact by country and determined that the impact of a "soft exit" could be worse in Ireland than in Britain, based on their degree of trade dependence on Britain. The Benelux countries and Sweden would take the next biggest hits, while the impact on Germany would be very limited given that its auto and other manufacturing sectors have many other markets. The Belgian region of Flanders will suffer a 2.5 per cent decline in GDP, according to its premier Geert Bourgeois, who believes his region would be hit hardest after Ireland. DYNAMIC EFFECTS The Bertelsmann study also looks into "dynamic effects", such as a potential loss of productivity because a decreased openness to trade reduces international competition and lowers the incentive to improve competitiveness. With dynamic effects, the long-term impact on German GDP would range between 0.3 and 2 per cent below the value if Britain remained in the European Union. (Reuters)

From trade to migration: how Brexit may hit the EU economy

The Indian government on Monday radically liberalised the foreign direct investment (FDI) regime with the objective of providing major impetus to employment and job creation in India, as 100 per cent FDI was approved in the sectors of aviation, food, defence and pharmaceuticals. &nbsp; 
&nbsp; 
The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi on Monday. &nbsp; 
&nbsp; 
Modi hailed a sweeping liberalisation of rules on foreign direct investment on Monday, saying they will make Asia&#39;s third-largest economy the most open in the world. &nbsp; 
&nbsp; 
&quot;Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI,&quot; Modi said in a tweet. &nbsp; 
&nbsp; 
In a second tweet, he said the changes would provide a &quot;major impetus to employment and job creation in India.&quot; &nbsp; 
&nbsp;
<blockquote class="twitter-tweet" data-lang="en">
It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce (1/2)
&mdash; PMO India (@PMOIndia) <a href="https://twitter.com/PMOIndia/status/744826441750163456">June 20, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script> 
This is the second major reform after the last radical changes announced in November 2015. Now most of the sectors will be under the automatic approval route except a small negative list. &nbsp; 
&nbsp; 
Launching the second set of liberalisation of foreign investments, the government relaxed the norms in host of sectors including single brand retail trade (SBTR), broadcasting carriage services, private security agencies and animal husbandry.&nbsp; 
Welcoming the landmark decision to open up the FDI regime, the Confederation of Indian Industry (CII) said the relaxation of local sourcing norms under single brand retail trading for advanced technology products would encourage global brands to build up their participation in the country.&nbsp; 
 
&quot;Taken together, the FDI rules announced today will attract big new investments across key sectors such as food processing, defence production, pharmaceuticals and civil aviation, among others, thereby adding to growth and employment,&quot; Director General of CII Chandrajit Banerjee said in a statement.&nbsp; 
 
Changes introduced in the policy include increase in sectoral caps, bringing more activities under the automatic route and easing of conditionality for foreign investment. &nbsp; 
&nbsp; 
These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors. &nbsp;&nbsp; 
&nbsp; 
It was decided to permit 100 per cent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India. &nbsp; 
&nbsp; 
In the defence sector, foreign investment beyond 49 per cent has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to &#39;state-of-the-art&#39; technology in the country has been done away with. &nbsp; 
&nbsp; 
FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under the Arms Act, 1959, of India. &nbsp; 
&nbsp; 
For private security agencies, FDI up to 49 per cent permitted under automatic route and FDI beyond 49 per cent and up to 74 per cent will be permitted through the government approval route. &nbsp; 
&nbsp; 
The extant FDI policy on pharmaceutical sector provides for 100 per cent FDI under automatic route in greenfield pharma and FDI up to 100 per cent under government approval in brownfield pharma. &nbsp; 
&nbsp; 
The extant policy on airports permits 100 per cent FDI under the automatic route in Greenfield Projects and 74 per cent FDI in Brownfield Projects under automatic route. &nbsp; 
&nbsp; 
With a view to aid in modernisation of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100 per cent FDI under automatic route in Brownfield Airport projects. &nbsp; 
&nbsp; 
As per the existing FDI policy, foreign investment up to 49 per cent is allowed under automatic route in scheduled air transport service/domestic scheduled passenger airline and regional air transport service. &nbsp; 
&nbsp; 
It has now been decided to raise this limit to 100 per cent, with FDI up to 49 per cent permitted under automatic route and FDI beyond 49 per cent through government approval. &nbsp; 
&nbsp; 
Monday&#39;s amendments to the FDI policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment. &nbsp;&nbsp; 
India&#39;s economic affairs secretary Shaktikanta Das said the manufacturing sector and job generation will get a boost with dual clearances no longer needed. &nbsp; 
 
&quot;With this liberalisation, we expect manufacturing activity to come in, more activity in defence products. The driving force behind the whole thing is that all this investment should facilitate creation of jobs,&quot; he told reporters here.&nbsp; 
The decision on FDI liberalisation was a follow-up to the decisions which were taken last November when a whole lot of reforms were announced. &nbsp;&nbsp; 
 
&quot;Wherever approval is given by the regulator, the companies will not need to the approach the Foreign Investment Promotion Board (FIPB) for clearance,&quot; he said.&nbsp; 
&nbsp; 
(Agencies) &nbsp; 
&nbsp;

Foreign direct investment will be possible in sectors like food, defence, pharmaceuticals and aviation through the automatic approval route

The Indian government on Monday radically liberalised the foreign direct investment (FDI) regime with the objective of providing major impetus to employment and job creation in India, as 100 per cent FDI was approved in the sectors of aviation, food, defence and pharmaceuticals. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi on Monday. Modi hailed a sweeping liberalisation of rules on foreign direct investment on Monday, saying they will make Asia's third-largest economy the most open in the world. "Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI," Modi said in a tweet. In a second tweet, he said the changes would provide a "major impetus to employment and job creation in India." It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce (1/2) — PMO India (@PMOIndia) June 20, 2016 This is the second major reform after the last radical changes announced in November 2015. Now most of the sectors will be under the automatic approval route except a small negative list. Launching the second set of liberalisation of foreign investments, the government relaxed the norms in host of sectors including single brand retail trade (SBTR), broadcasting carriage services, private security agencies and animal husbandry. Welcoming the landmark decision to open up the FDI regime, the Confederation of Indian Industry (CII) said the relaxation of local sourcing norms under single brand retail trading for advanced technology products would encourage global brands to build up their participation in the country. "Taken together, the FDI rules announced today will attract big new investments across key sectors such as food processing, defence production, pharmaceuticals and civil aviation, among others, thereby adding to growth and employment," Director General of CII Chandrajit Banerjee said in a statement. Changes introduced in the policy include increase in sectoral caps, bringing more activities under the automatic route and easing of conditionality for foreign investment. These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors. It was decided to permit 100 per cent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India. In the defence sector, foreign investment beyond 49 per cent has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to 'state-of-the-art' technology in the country has been done away with. FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under the Arms Act, 1959, of India. For private security agencies, FDI up to 49 per cent permitted under automatic route and FDI beyond 49 per cent and up to 74 per cent will be permitted through the government approval route. The extant FDI policy on pharmaceutical sector provides for 100 per cent FDI under automatic route in greenfield pharma and FDI up to 100 per cent under government approval in brownfield pharma. The extant policy on airports permits 100 per cent FDI under the automatic route in Greenfield Projects and 74 per cent FDI in Brownfield Projects under automatic route. With a view to aid in modernisation of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100 per cent FDI under automatic route in Brownfield Airport projects. As per the existing FDI policy, foreign investment up to 49 per cent is allowed under automatic route in scheduled air transport service/domestic scheduled passenger airline and regional air transport service. It has now been decided to raise this limit to 100 per cent, with FDI up to 49 per cent permitted under automatic route and FDI beyond 49 per cent through government approval. Monday's amendments to the FDI policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment. India's economic affairs secretary Shaktikanta Das said the manufacturing sector and job generation will get a boost with dual clearances no longer needed. "With this liberalisation, we expect manufacturing activity to come in, more activity in defence products. The driving force behind the whole thing is that all this investment should facilitate creation of jobs," he told reporters here. The decision on FDI liberalisation was a follow-up to the decisions which were taken last November when a whole lot of reforms were announced. "Wherever approval is given by the regulator, the companies will not need to the approach the Foreign Investment Promotion Board (FIPB) for clearance," he said. (Agencies)

Radical reform: India allows 100% FDI in key sectors

Mergers and acquisitions in the global consumer and retail sectors in 2016 are likely to be characterised by lower valuations for small firms and reasonable values for riskier assets, after a string of mega deals in 2015, a report shows.

Last year ended with $365 billion in transactions, the highest dollar value of deals in these sectors since 2008, said the report by consulting firm AT Kearney.

The report, titled &#39;Has the consumer-retail merger market lost its froth&#39;, was based on interviews with thirty six company executives globally and analysed historical data from over 1,000 transactions.

Among other&nbsp;trends, the report found renewed investment interest in the United States and other weste nrn markets by companies in China and Japan keen to expand outside their home markets.

The need for deals will be spurred by tighter margins and slowing growth but that will be offset by a drop in demand for high yield debt from private equity players. Higher interest rates for such debt will increase the cost of capital and hurt deal appetite, the report said.

Consolidation, however, will continue and is likely in the most mature categories like soda beverages, processed foods such as cereals and frozen foods.

Large Chinese companies with limited growth prospects domestically still have access to vast amounts of capital from state-owned banks and are interested in buying valuable assets, brands, and capabilities rather than building them.

Chinese investment in offshore M&amp;A was already at $106 billion by the end of the first quarter of 2016, just short of the total for all of 2015, the report said.

Buyers also remained bullish on India with sixty eight per cent of respondents expecting deal activity in the market to remain at current levels or increase, driven by lower oil prices and a broad push towards deregulation led by Prime Minister Narendra Modi.

The report, titled 'Has the consumer-retail merger market lost its froth' found renewed investment interest in the United States and other western markets by companies in China and Japan

Mergers and acquisitions in the global consumer and retail sectors in 2016 are likely to be characterised by lower valuations for small firms and reasonable values for riskier assets, after a string of mega deals in 2015, a report shows. Last year ended with $365 billion in transactions, the highest dollar value of deals in these sectors since 2008, said the report by consulting firm AT Kearney. The report, titled 'Has the consumer-retail merger market lost its froth', was based on interviews with thirty six company executives globally and analysed historical data from over 1,000 transactions. Among other trends, the report found renewed investment interest in the United States and other weste nrn markets by companies in China and Japan keen to expand outside their home markets. The need for deals will be spurred by tighter margins and slowing growth but that will be offset by a drop in demand for high yield debt from private equity players. Higher interest rates for such debt will increase the cost of capital and hurt deal appetite, the report said. Consolidation, however, will continue and is likely in the most mature categories like soda beverages, processed foods such as cereals and frozen foods. Large Chinese companies with limited growth prospects domestically still have access to vast amounts of capital from state-owned banks and are interested in buying valuable assets, brands, and capabilities rather than building them. Chinese investment in offshore M&A was already at $106 billion by the end of the first quarter of 2016, just short of the total for all of 2015, the report said. Buyers also remained bullish on India with sixty eight per cent of respondents expecting deal activity in the market to remain at current levels or increase, driven by lower oil prices and a broad push towards deregulation led by Prime Minister Narendra Modi.

Global retail and consumer sector deals less pricey in 2016: report

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