- Bloomberg
Venture Fund Backing Firms Worth $206 Billion Eyes China
(Bloomberg) -- David Chao, a venture capitalist who has been on the ground floor of Asian companies worth a combined $206 billion, has raised money for a new fund with a China focus, a sign that rising U.S.-China tensions aren’t turning off foreign investors.DCM Ventures, which has the backing of SoftBank Group Corp. and Japanese e-commerce giant Rakuten Inc., attracted $880 million from investors including U.S. endowments and pension plans, along with European firms.Chao, the co-founder of DCM, is uniquely placed to bridge the growing divide between the U.S. and China, sparked by trade disputes and tensions in Hong Kong. The Stanford University grad who was once recruited to be a sumo wrestler and understands Mandarin and Japanese, is as much at ease in the U.S. as China and Japan.“They are the three largest markets in the world, and both from an investment and business development perspective, the right markets,” Chao, 53, said in a phone interview. “China is still going to grow faster than the U.S. over the next 10 years. So I think in terms of the capital flow, it won’t stop.”Chao acknowledges some U.S. investors are growing more skittish about China as President Donald Trump ratchets up pressure to block Huawei Technologies Co.’s expansion and retaliates over China’s new security law in Hong Kong.“The tension is there, people did think a little bit harder whether they should invest in China,” said Chao, who regularly travels between Asia and his base in Menlo Park, California. “There are clearly some pension funds that are uncomfortable with China, but is that going to make a dent in the money being raised? I think you’ll end up being a rounding error.”Flows IncreasingMost investors are looking past the tension to see the opportunities in China and Japan, he said. Chao, whose funds have posted annual returns of 50% over the last decade with runaway hits on Bill.com Holdings Inc. in the U.S., 51job Inc. in China and Japan’s Freee KK, is now eying China startups in online drug distribution, video content platforms and cloud-based management software that’s disrupting International Business Machines Corp. and Oracle Corp.“In terms of money flowing into China, I actually think it’s going to increase,” he said.Chao, who grew up in Kobe before moving to Silicon Valley, epitomizes DCM’s approach of tapping the three economies. With $4.2 billion under management, DCM counts Tencent Holdings Ltd. and Baidu Inc. as investors, while Chao golfs with tech titans including Rakuten founder Hiroshi Mikitani.“David is a such an unique individual who will not allow anyone to put him in a box and has a fresh way to look at global synergies, especially in the China-Japan-U.S. triangle,” Mikitani said in a text via Viber, Rakuten’s messaging app.Humble BeginningsChao says his out-of-the-box thinking and work ethic were fueled by the discrimination he faced growing up in Japan. Chao’s second-generation Chinese immigrant mother operated a motel business, while his Chinese father traded medical equipment between the two countries. His ethnicity made him an outcast at times, although with his girth -- he weighed 260 pounds (118 kilograms) at age 13 -- he was once approached by a sumo wrestling recruiter.“One of the things my father always said is ‘hey, you gotta either work three times as hard as your fellow Japanese kids, or you gotta think different,’” said Chao. “Otherwise, you’re never going to break the glass ceiling.”Chao went to boarding school in California, hoping to change his fortunes. He obtained a degree in Economics and East Asian studies at Brown University, after opting out of medical school because he couldn’t stop vomiting in front of cadavers.Market CrashHe graduated just as the 1987 Black Monday crash hammered the job market. So he returned to Japan to work for a recruitment firm, going door-to-door in Tokyo selling ads, wearing out leather shoes every two months from all the walking.One of his clients was Apple Inc. -- back then still struggling to expand in Japan -- and the company hired him to sell software. It was there that he first met Masayoshi Son, convincing the SoftBank chairman to buy Apple software.After Stanford business school, he worked as a consultant for Steve Jobs, the Apple founder who helped him realize tech was the future. When Dixon Doll, a Silicon Valley venture capitalist, started a new fund Chao joined as co-founder, bringing in 40% of the capital from investors in Japan, before setting his sites on the biggest prize: China.China PlungeChao hopped on a plane to Shanghai in 1999, some 10 years after he first visited China with his father before the Tiananmen Square crackdown. Over breakfast at the Ritz-Carlton, Chao drafted up term-sheets on napkins and brokered a deal with the 51job founders for DCM’s first China investment. 51job is now one of the largest recruitment platforms in China, valued at $4.6 billion on the Nasdaq.“David brought a unique perspective, since 20 years ago very few people understood both west and eastern cultures,” said Kathleen Chien, co-founder of 51job, by phone. DCM sold its 30% stake for a 12-fold gain to Tokyo-based Recruit Holdings Co. in 2006.That same year, Chao convinced his Stanford classmate Hurst Lin to join and build up DCM’s China’s business. The son of Taiwan immigrants, Lin graduated from Dartmouth College and later co-founded Sina.com Inc., China’s first online portal company to go public in the U.S.Some RegretsWith Lin’s help, DCM made bets on Chinese companies including online classified ads startup 58.com Inc. and e-commerce site Vipshop Holdings Ltd., the latter making a $1 billion return on investment. DCM also struck gold with Musical.ly, the lip-syncing and dancing video app that took off in the U.S. and was sold to ByteDance Ltd. for about $800 million.The fund has backed a new batch of companies including online drug distribution platform YaoShiBang and online learning platform VIP Think. Chao is betting another windfall will come from video streaming app Kuaishou, which is already valued at $29 billion and yet to go public.DCM also doesn’t shy away from controversial investments. It backed Blued, the Chinese LGBTQ dating app that many feared could face crackdown by authorities but is now listing in the U.S.“When everyone else thinks that China is not sexy, that’s actually when you start to make real money,” said Lin.To be sure, Chao has some regrets. He passed on search engine Baidu due to a disagreement on valuation and skipped Zoom Video Communications Inc., which has soared during the pandemic.Drinking Kool-AidWith those lessons in hand, DCM requires four general partners to vote and assign points to potential investments. Chao works closely with Beijing-based Lin, Ramon Zeng, and Tokyo-based Osuke Honda, who helped orchestrate two of Japan’s biggest IPOs last year.For DCM, the tri-cultural checks and balances seem to be paying off.“When you’re caught in your own geography you start to drink the Kool-Aid,” said Honda, 45, who owns black belts in Judo and Kyokushin Karate. “This structure urges people to dig in a little bit deeper.”(Updates with DCM investment in LGBTQ app Blued)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- MarketWatch
Mexico’s president heads to Washington to meet with Trump
For his first foreign trip as president, Mexico’s Andrés Manuel López Obrador travels to Washington Tuesday to meet with President Donald Trump, who has repeatedly taken shots at Mexico and Mexican migrants to rally his base.
- Thomson Reuters StreetEvents
Edited Transcript of LUMI.TA earnings conference call or presentation 27-May-20 2:00pm GMT
Q1 2020 Bank Leumi Le Israel BM Earnings Call
- Business Wire
COVID-19 Impact and Recovery Analysis | Photography Services Market 2019-2023 | Popularity of Social Media to Boost Growth | Technavio
The Global Photography Services Market will grow by USD 10.24 bn during 2019-2023
- GlobeNewswire
Allstate Expands Personal Lines Market Position with Acquisition of National General
The transaction is expected to close in early 2021, subject to regulatory approvals and other customary closing conditions. “Acquiring National General accelerates Allstate’s strategy to increase market share in personal property-liability and significantly expands our independent agent distribution,” said Tom Wilson, Chair, President and CEO. National General’s business and technology platforms will be utilized to further strengthen Allstate’s existing independent agent businesses.
- PR Newswire
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Wirecard AG - WCAGY- WRCDF
Pomerantz LLP is investigating claims on behalf of investors of Wirecard AG ("Wirecard" or the "Company") (OTCMKTS: WCAGY; WRCDF). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 7980.
- Reuters
FOREX-Dollar bides time as coronavirus spread revives global growth anxiety
The dollar held onto gains on Wednesday as a resurgence of the coronavirus in the United States and the return of lockdowns in some countries boosted safe-haven demand for the U.S. currency. Risk sentiment was also undermined after Federal Reserve officials expressed concern that rising coronavirus cases could harm economic growth just as stimulus measures start to expire. Other Asian currencies straddled narrow ranges as a resurgence of coronavirus cases threatened a return of lockdown restrictions, leaving investors fretting about the mounting economic costs of the pandemic.
- GlobeNewswire
Vir Biotechnology Announces Pricing of Public Offering of Common Stock
SAN FRANCISCO, July 07, 2020 -- Vir Biotechnology, Inc. (Nasdaq: VIR), a clinical-stage immunology company focused on treating and preventing serious infectious diseases, today.
- Reuters
Trump administration says pandemic aid saved 51 million jobs. Did it?
U.S. President Donald Trump's administration touted its $660 billion small business pandemic aid program this week as a "wild success," unveiling data that showed the initiative saved 51 million jobs. For example, a Reuters analysis of the data found that 827 companies reported saving at least 400 jobs with a loan smaller than $150,000. Two hundred of those companies reported saving at least 400 jobs with a loan of just $5,000 or less.
- Reuters
Australian banks extend loan holiday for struggling borrowers
The Australian Banking Association (ABA) added that people struggling to repay mortgage or business loans would also be given options to restructure existing loans. The new extension follows the ABA's announcement in March of a six-month deferral of repayments. "This next phase of bank support will avoid a 'cliff' for customers in September and give them the breathing space they need to work with their bank and get back on their feet financially," said ABA Chief Executive Anna Bligh.
- Reuters
Trump aides weighed proposals to undermine Hong Kong’s dollar peg - Bloomberg
The proposal to strike against the Hong Kong dollar peg, possibly by limiting the ability of Hong Kong banks to buy U.S. dollars, was raised as part of broader discussions among advisers to Secretary of State Mike Pompeo, it added. Other administration members pushed back against the proposal, worrying that such a move would only hurt Hong Kong banks and the United States, not China, sources told Bloomberg. The idea wasn't elevated to White House's senior levels, the report said, suggesting that it hasn't gained serious traction yet.
- PR Newswire
BNY Mellon, Deutsche Bank Collaborate to Revolutionize Custody FX for Restricted EM Currencies
BNY Mellon and Deutsche Bank have jointly developed a new API-enabled foreign-exchange (FX) solution that can dramatically improve confirmation times for restricted emerging-market currency trades.
- Reuters
Coronavirus spurs Japan bank lending at record pace in June
Japanese bank lending grew at the fastest annual pace on record in June as companies continued to hoard cash to tide over the sweeping impact of the coronavirus pandemic, central bank data showed on Wednesday. Deposits parked at financial institutions also surged to an all-time high as big companies parked funds they borrowed as a precaution to meet immediate cash needs, the BOJ data showed. The increase suggests companies are still reeling from the effects of the pandemic, even after Japan lifted lockdown measures to contain the virus in late May.
- GlobeNewswire
The Global Connected Gym Equipment Market is expected to grow by $ 1.48 bn during 2020-2024 progressing at a CAGR of 22% during the forecast period
New York, July 07, 2020 -- Reportlinker.com announces the release of the report "Global Connected Gym Equipment Market 2020-2024" -.
- Reuters
Exclusive: U.S. probing allegations TikTok violated children's privacy - sources
The Federal Trade Commission and the U.S. Justice Department are looking into allegations that popular app TikTok failed to live up to a 2019 agreement aimed at protecting children's privacy, according to two people interviewed by the agencies. A staffer in a Massachusetts tech policy group and another source said they took part in separate conference calls with FTC and Justice Department officials to discuss accusations the China-based short video sharing app had failed to live up to an agreement announced in February 2019. The Center for Digital Democracy, Campaign for a Commercial-Free Childhood and others in May asked the FTC look into their allegations TikTok failed to delete videos and personal information about users age 13 and younger as it had agreed to do, among other violations.
- Investor's Business Daily
Dow Jones Futures: Coronavirus Stock Market Rally Steps Back, But Tesla, These Leaders Advance; Facebook In Focus Late
The stock market rally had a down day, but not hot EV plays Tesla and Nio. Facebook is in focus late after Mark Zuckerberg met with ad boycott organizers.
- Reuters
U.S. consumer watchdog removes 'ability-to-pay' need from final payday loan rule
The U.S. Consumer Financial Protection Bureau on Tuesday issued its long-awaited payday lending measure that rescinds an Obama-era proposal requiring lenders first ensure a borrower is able to repay them. Consumer advocates blasted the move as a further sign the Trump administration is going easy on predatory lenders. Lenders would have been required to ensure borrowers had the means to repay a loan and meet other living expenses.
- Reuters
Insurer Allstate to buy National General for about $4 bln
Allstate Corp said on Tuesday it will buy National General Holdings Corp for about $4 billion in cash as the insurer looks to expand its market share in personal lines insurance business. National General's shareholders will receive $32 per share in cash and closing dividends of $2.50 per share for each share held, representing a premium of about 69% to its Tuesday's close.
- Reuters
DHL to cut 2,200 UK workers at Jaguar Land Rover factories, union says
The job cuts comprise just under 40% of the entire DHL workforce on the contract, the union said. DHL indicated that the half of the job cuts are due to a decline in car production and half are the result of anticipated "efficeincy savings", the union added. "DHL must not attempt to make permanent full-time staff redundant while continuing to outsource work to sub-contractors," Matt Draper, Unite national officer for logistics, said.
- Motley Fool
Why Macy's Stock Plunged 60% in the First Half of the Year
Macy's (NYSE: M) shares fell 60% in the first six months of the year, according to data from S&P Global Market Intelligence, as the company was hit hard by the coronavirus pandemic. The department store chain was forced to sharply cut back on expenses, take on more debt, and pause its turnaround as stores closed for several weeks. With a heavy real estate footprint and a business largely dependent on apparel sales, which come with a distinct set of challenges during the lockdown, Macy's is struggling to manage its way through the crisis.
- Business Wire
COVID-19 Impact and Recovery Analysis|Dry-cleaning And Laundry Services Market 2019-2023 | Smart-laundry Technology to Boost Growth | Technavio
The Global Dry-cleaning and Laundry Services Market will grow by USD 13.75 bn during 2019-2023
- Thomson Reuters StreetEvents
Edited Transcript of FSL.NSE earnings conference call or presentation 27-May-20 4:30am GMT
Q4 2020 Firstsource Solutions Ltd Earnings Call
- Fox Business
Trump: Harvard should be ashamed of itself for continuing with online instruction
President Trump ripped into Harvard University on Tuesday for its decision to continue with online coursework into the 2020-2021 academic year amid the coronavirus pandemic.
- Newsfile
American Creek Announces Postponement of Annual General Meeting
Cardston, Alberta--(Newsfile Corp. - July 7, 2020) - American Creek Resources Ltd. (TSXV: AMK) (the "Company" or "American Creek") - announces that due to ongoing concerns related to the spread of COVID-19, and in order to mitigate potential risks to the health and safety of its shareholders and communities, the Company has elected to postpone this year's annual general meeting of shareholders (the "AGM") which originally would have been at this time. The ...
- GlobeNewswire
Ascendis Pharma A/S Announces Pricing of Public Offering of ADSs
Ascendis Pharma A/S (ASND), a biopharmaceutical company that utilizes its innovative TransCon™ technologies to address unmet medical needs, today announced the pricing of its underwritten public offering of 4,225,352 American Depositary Shares (“ADSs”), each of which represents one ordinary share of Ascendis, at a price to the public of $142.00 per ADS. All of the ADSs are being offered by Ascendis. In addition, Ascendis has granted the underwriters a 30-day option to purchase up to an additional 633,802 ADSs at the public offering price, less the underwriting commissions.
