"The Champagne should probably be kept on ice, at least until the two presidents put pen to paper," said state-owned media China Daily.Traderead more
U.S. stock index futures turned lower after China said it needed to have further discussions before it would sign off on the so-called phase one trade deal President Trump...US Marketsread more
Analysts say the partial U.S.-China trade deal doesn't touch on thorny issues plaguing both sides, and warn talks could break down again.World Economyread more
Economists polled by Reuters had expected Chinese exports denominated in the U.S. dollar to fall by 3% and imports to decline by 5.2% in September, compared to a year ago.China Economyread more
Economists Abhijit Banerjee, Esther Duflo and Michael Kremer won the 2019 Nobel Economics Prize for their work in fighting global poverty, the Royal Swedish Academy of...World Newsread more
Boeing's board removed CEO Dennis Muilenburg as chairman amid the fall out of two 737 Max crashes that killed 346 people.Aerospace & Defenseread more
The U.K. and EU are gearing up for what could be the busiest week in British politics since June 2016.Europe Politicsread more
The U.S. had plans to hike duties on at least $250 billion in Chinese goods to 30% from 25% on Tuesday. Despite the partial trade deal, some banks on Sunday wrote that tariff...Marketsread more
"It seems like what the two leaders have done is try to set some of the thorny political issues to the side," said Dhruva Jaishankar, director of the U.S. Initiative at the...Asia Politicsread more
Beijing will be opening up its financial industry to foreign ownership from January, namely in the areas of futures, mutual funds and securities.China Economyread more
The industry has pulled in $322 billion over the past six months, the fastest pace since the second half of 2008.Marketsread more
Japanese electronics giant Sharp may be struggling, but the banks will keep the heavily indebted firm on life support, analysts say.
"The banks are on the hook – it goes back to [John Maynard] Keynes' famous saying: if you borrow $100 from the bank, it's your problem; if you borrow $100 million from the bank, it's the bank's problem," Jefferies analyst Atul Goyal told CNBC.
Sharp's financial issues are slightly greater than even a $100 million, however. The company owes around 700 billion yen ($5.9 billion) to its banks, not including other debt, such as bonds, and had a total debt burden of 1.07 trillion yen at the end of fiscal 2014.
And that was before Sharp apparently secured another 200 billion lifeline from its main creditor banks, Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, in return for promising to scale back its television operations and cutting around 5,000 jobs, according to a Reuters report on Thursday.
Sharp's share price plunged 5.78 percent on Friday, after hitting a four-month high earlier in the session.
"The total amount is not that big for the banks and they don't want to pull the plug because no one wants to see a company with 50,000 employees go bankrupt," BNP Paribas chief credit analyst Mana Nakazora said by phone.
Mizuho and Mitsubishi, two of Japan's largest banks, had corporate loan books of 43.4 trillion yen and 41 trillion yen, respectively, at the end of fiscal 2013.
And while the latest lifeline thrown by the banks is expected to keep Sharp afloat, its medium- to long-term survival remains in doubt.
"We are clearly stating it won't go bust," said Jefferies' Goyal. On the other hand, at this this stage the company "does not have any profit drivers" to fall back on, he added.
The problems are abundant: Sharp needs to book valuation losses on excess inventory and impairment charges on some of its liquid crystal display (LCD) plants, radically downsize other businesses such as solar cell panels as well as its head office in Japan, according to an April 16 note by Deutsche Bank analyst Yasuo Nakane.
The company is expecting to suffer annual net losses of 200 billion yen in fiscal 2015 and of 150 billion yen in fiscal 2016, according to a Nikkei report earlier in the week.
Even then, it's not clear whether the company will survive, analysts said.
"I can't say for certain that Sharp will exist in five to ten years – after all, the Japanese electronics industry itself suffers from chronic over-capacity," said BNP Paribas' Nakazora.