Even crazy cheap debt can be cheaper still
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
NEW YORK, June 21 (Reuters Breakingviews) – In a world of
rock-bottom rates, some corporate issuers are finding ways to
save even more. Time Warner Cable (TWC.N: Quote, Profile, Research), a U.S. pay-TV
operator with only domestic customers, just sold $1 billion of
30-year paper denominated in sterling. The textbook arbitrage
may save it 25 basis points. It shows that even crazy cheap debt
can be cheaper still.
Good thing Ackman sees J.C. Penney as longterm bet
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
NEW YORK, June 19 (Reuters Breakingviews) – It’s a good
thing Bill Ackman considers J.C. Penney (JCP.N: Quote, Profile, Research) a long-term bet
- because it’s a dog right now. The sudden departure of the
highly touted president after just eight months essentially
underscores the work that lies ahead for the struggling U.S.
retailer. J.C. Penney shares tumbled another 9 percent on
Tuesday and served as a reminder of just how hard bold
turnarounds can be in the public glare.
Too big to fail anxiety fuels Jamie Dimon circus
By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
One thing binds the politicians, pundits, protesters and investors outraged by JPMorgan’s loss of some $2 billion on dodgy trades. None of them believes that U.S. taxpayers are really off the hook for Wall Street’s future, and probable, failures. The real loser of the debate – which today saw the CEO of a well-capitalized, profitable private financial institution hauled before the Senate – is the Dodd-Frank Act.
California shows way through tricky pension mess
By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
San Jose and San Diego want current public workers to make sacrifices for their pensions, like contributing up to 16 percent more of salaries to fund retirement schemes. The proposals, overwhelmingly backed by voters in elections this week, look to be a sensible way forward in the thorny thicket of pension reform.
BofA reject wins Fannie Mae booby prize
(The authors are Reuters Breakingviews columnists. The opinions
expressed are their own.)
By Daniel Indiviglio and Agnes T. Crane
WASHINGTON/NEW YORK, June 6 (Reuters Breakingviews) – No
good deed goes unpunished. Fannie Mae (FNMA.OB: Quote, Profile, Research) has chosen
Timothy Mayopoulos, its general counsel, as its new chief
executive. His promotion won’t improve already tense relations
with Bank of America (BAC.N: Quote, Profile, Research) – the mega-bank fired him in 2008
after he questioned mounting losses. But his integrity and
background make him a decent fit for the job.
Wal-Mart jamboree missing one thing – a vote count
By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.Wal-Mart pulled out all the stops for its shareholder meeting on Friday. Justin Timberlake emceed at the event, which also doubled as a golden jubilee celebration. Lionel Richie had the arena-sized audience on its feet with “All Night Long” and Celine Dion closed down the party just in time for lunch. It’s a shame the mega-retailer’s organizational skills don’t extend to the basics, like providing more timely color on the controversial re-election of its board.
The 15 directors are under fire for their handling of a multi-year bribery scandal in Mexico that the New York Times brought to light in April. If the allegations prove to be true, the firm could face more serious charges as it may have violated the U.S. Foreign Corrupt Practices Act.
Yet the only information Chairman Robson Walton gave about the outcome of the vote was that a majority of shareholders had voted to re-elect everyone on the board. But that was pretty much a foregone conclusion: the Walton family controls about half of the company’s 3.4 billion shares.
Wal-Mart shareholders can make their protest count
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
NEW YORK, May 25 (Reuters Breakingviews) – Wal-Mart (WMT.N: Quote, Profile, Research)
shareholders can make their votes count at next week’s annual
meeting – even if mainly as a protest. With half the votes
sewn-up by the Walton family, directors tainted by the
retailer’s Mexican bribery scandal are probably safe in their
seats. But investors disturbed by Wal-Mart’s cover-up of the
affair should make their displeasure known just the same by
targeting Chairman Robson Walton himself.
Coty’s freshened offer hard for Avon to resist
By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
Coty is making its advances harder for Avon Products to resist. The European fragrance maker has given the down-in-the-dumps U.S. makeup firm until Monday to engage in discussions. But Coty has raised its offer to $10.7 billion, added Warren Buffett’s cash and blessing, and hinted at the possibility of a still higher price – while Avon is, if anything, looking weaker.
Buffett Rule divides Berkshire Hathaway faithful
By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
Warren Buffett has built a career on finding value. And insurance-focused Berkshire Hathaway excels at calculated risks. But the ideological divide over a politically charged tax plan with Buffett’s name on it that marred Saturday’s annual shareholder love-fest this year suggests a temporary lapse when it comes to those two virtues. The Buffett Rule may be an unexpected liability for Berkshire.
Nerds may get revenge on Woodstock of Capitalism
By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
This year’s Woodstock of Capitalism could turn into the revenge of the nerds. For the first time in the history of the closely watched annual gathering of Berkshire Hathaway shareholders, financial analysts have been invited to pepper Warren Buffett with questions in front of the 35,000 or so who will gather for the event. It’s the latest sign that times may be a-changin’ for the company.
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