Blog Profile / Reuters Breakingviews Blog

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Archived Since:June 19, 2011

Blog Post Archive

Cox: Why Brexit would be a boon for Donald Trump

It’s June 24 and Britain has just voted to leave the EU. The Republican presidential candidate congratulates pro-leave UK politician Boris Johnson on a huge victory - and then calls for a U.S. referendum on TPP and NAFTA. Breakingviews obtained an early copy of Trump’s speech.

Credit Suisse investment bank decline will persist

The Swiss bank cut costs briskly while keeping capital levels steady in the first quarter. Net margins in wealth management also outdid bigger rival UBS. But boss Tidjane Thiam’s botched restructuring of Credit Suisse’s trading arm is in danger of leaving lasting scars.

Baidu selloff understates long-term health risks

Regulators have ordered China’s top search engine to rein in healthcare advertising after a scandal. That could knock as much as a fifth off earnings. Investors who have marked the shares down by 13 pct so far may be underestimating the broader impact on Baidu’s business model.

Digesting Krispy Kreme may require more sweetener

JAB has baked a 25 pct premium into its $1.4 bln offer to take the donut maker private. The billionaire-backed owner of coffee sellers Keurig and Peet’s should be able to boost sales and margins. But Krispy Kreme may prove too appetizing for others to pass up without a fight.

Saudi reshuffle points to era of oil volatility

Ali al-Naimi, just fired as oil minister, was the architect of a bitter price war but also had successes reaching consensus with OPEC. His successor Khalid al-Falih may lack the same influence. It suggests a more centralised Saudi establishment, but more discord in oil markets.

Toshiba fluffs leadership overhaul

The scandal-hit Japanese group named two new bosses. Neither is ideal: the CEO is a clean pair of hands but hails from a now non-core business. The chairman is an insider who oversaw big writedowns at the U.S. energy unit. It’s a setback to an otherwise decent effort to clean up.

Farcical oil deal prompts George Costanza defense

Like the character in sitcom “Seinfeld,” Energy Transfer hopes to shake up a sour relationship: the $21 bln takeover of pipeline rival Williams. ETE aims to pay less cash, seeming to force the issue by making itself as unattractive as possible. The stakes are no laughing matter.

Viewsroom: Tribune stalls while Tesla puts pedal to metal

The newspaper chain's rejection of Gannett's hefty $815 million offer is a head-scratcher, hardly the sort of move that suggests the industry knows how to pull itself out of a prolonged slump. Can clever experiments like the New York...Show More Summary

Trump’s Fed position befits a banana republic

The reality-TV veteran turned White House contender says Janet Yellen is following the right monetary policy, but he’d replace her because she’s not a Republican. That’s not only a break with decorum. It’s a red flag that a President Trump would meddle in central-banking affairs.

Brexit advocates: heed the tale of Herb Kelleher

The co-founder of U.S. budget airline Southwest took the glamour out of air travel. But the increased connectivity has had unexpected benefits - like more scientific breakthroughs, a new study shows. Those who seek a British exit from the EU may be giving up more than they know.

India shows China the way to deal with bad debt

State-backed banks in both countries have lent too much to politically connected companies that are now in trouble. While India is pushing lenders to come clean, China is still not admitting the extent of the problem. Future growth depends on a proper cleanup.

Tesla’s acceleration may get investors shaking

The electric-auto maker expects to produce 500,000 vehicles two years earlier than planned amid strong demand for its new Model 3 sedan. Such ambition is typical for boss Elon Musk. The cash and technical capabilities involved, however, increase risk with the potential rewards.

Pfizer mulls actually having an M&A strategy

The $205 bln drug giant’s last two huge acquisition attempts failed. Pfizer could yet try another merger to cut its tax rate, it could enter a potentially heated auction for $10 bln biotech Medivation, or it could split up. Dealmaking success depends on having clearer goals.

Alibaba’s strong core comes with shaky periphery

The Chinese e-commerce group’s revenue soared 39 pct year on year, faster than volumes of stuff sold on its sites. Alibaba also disclosed losses on its fintech, services and logistics affiliates. Those trends can co-exist, so long as online shopping growth stays sturdy.

Stupid names can’t hurt good companies

Healthineers, Siemens’ new brand for its healthcare unit, is reminiscent of a hero in a 1950s science fiction comic. Users of its brain-scanners are unlikely to care. For investors the goofy name is, at the margin, a good thing: it shows a spin-off may have become more likely.

Mitsubishi Motors fiasco shows reforms lack oomph

The carmaker’s legacy of dodgy testing is astonishing. At best, management and directors were in the dark for 25 years. The firm badly needs a stronger board and better internal controls. For all the talk of improved corporate governance, much of Japan Inc is similarly lacking.

The Exchange podcast: ‘Europe is a cesspool of deflationary forces’

Yanis Varoufakis joins Rob Cox, global editor of Breakingviews, to talk about his new book, “And the Weak Suffer What They Must?”, the state of the EU, and the implications of a potential Brexit and Trump presidency.

Financiers may want to keep a closer eye on Trump

The bellicose real-estate mogul has all but sewed up the Republican presidential nomination. Markets are pricing in a Hillary Clinton victory, however, as Carlyle’s David Rubenstein told an elite Beverly Hills gathering. Trump doubters have learned how the odds can swing quickly.

Credit Suisse sheds problem assets but not stigma

The Swiss bank has sold $1.2 billion of distressed credit to buyout group TPG, locking in an extra $100 mln of writedowns. High-yield prices are similar to what they were in October. Hence Credit Suisse hasn’t gained much financially for the dent in its credibility.

UK deal veto would be big setback for Li Ka-shing

A $15 bln takeover of Telefonica’s O2 unit was key to making the Hong Kong tycoon’s costly bet on European telecoms pay off. If CK Hutchison cannot overturn a likely EU veto, his UK telco will either have to carry on as a disruptive fourth player, or find a fallback deal.

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