Antony's Feed
Jun 26, 2015
via Breakingviews

WeWork stretches sharing-economy valuations

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

WeWork is stretching valuations for the sharing economy. The American provider of groovy office space to millennial workers is now worth $10 billion after its latest private funding round, doubling in just six months. The company is growing fast, but would have to boost earnings 15-fold to justify its worth, using more established rivals’ metrics. That’s wishful-thinking growth.

Jun 26, 2015
via Breakingviews

WeWork stretches sharing-economy valuations

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

WeWork is stretching valuations for the sharing economy. The American provider of groovy office space to millennial workers is now worth $10 billion after its latest private funding round, doubling in just six months. The company is growing fast, but would have to boost earnings 15-fold to justify its worth, using more established rivals’ metrics. That’s wishful-thinking growth.

Jun 18, 2015
via Breakingviews

Trading illiquidity theories lack solid ground

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Trading illiquidity is the bugbear du jour for Wall Street and the City of London. Blackstone boss Stephen Schwarzman is just the latest financial bigwig to argue that the enforced shrinkage of banks’ activities is hurting liquidity so badly, particularly in bond markets, that it could fuel the next crisis. A look at how markets have changed – and how brokers actually behave – suggests otherwise.

Jun 18, 2015
via Breakingviews

Trading illiquidity theories lack solid ground

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Trading illiquidity is the bugbear du jour for Wall Street and the City of London. Blackstone boss Stephen Schwarzman is just the latest financial bigwig to argue that the enforced shrinkage of banks’ activities is hurting liquidity so badly, particularly in bond markets, that it could fuel the next crisis. A look at how markets have changed – and how brokers actually behave – suggests otherwise.

Jun 16, 2015
via Breakingviews

Goldman may lose its way on Main Street

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Goldman Sachs may get lost on Main Street. The investment banking powerhouse plans to meander off Wall Street and start lending money to average Joes and Joannes next year, the New York Times reported on Monday. Healthy returns probably await. A broader constituency of customers also could come in handy. It’s a big strategic change, however, and one fraught with distractions and risks.

Jun 16, 2015
via Breakingviews

Goldman may lose its way on Main Street

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Goldman Sachs may get lost on Main Street. The investment banking powerhouse plans to meander off Wall Street and start lending money to average Joes and Joannes next year, the New York Times reported on Monday. Healthy returns probably await. A broader constituency of customers also could come in handy. It’s a big strategic change, however, and one fraught with distractions and risks.

Jun 10, 2015
via Breakingviews

Tokio Marine learning lessons in value destruction

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Tokio Marine may at last be learning some valuable lessons about value destruction. The 38 percent premium the Japanese insurer is paying as part of its $7.5 billion purchase of U.S. rival HCC Insurance is only half as absurd as in its two previous stateside deals. Those extravagant forays, though, should give Tokio Marine scope to cut costs – perhaps even enough to make a deal stack up for a change.

Jun 10, 2015
via Breakingviews

Tokio Marine learning lessons in value destruction

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Tokio Marine may at last be learning some valuable lessons about value destruction. The 38 percent premium the Japanese insurer is paying as part of its $7.5 billion purchase of U.S. rival HCC Insurance is only half as absurd as in its two previous stateside deals. Those extravagant forays, though, should give Tokio Marine scope to cut costs – perhaps even enough to make a deal stack up for a change.

Jun 2, 2015

Breakingviews-Hedgies’ Safeway victory puts boards on notice

By Kevin Allison and Antony Currie

CHICAGO/NEW YORK (Reuters Breakingviews) – The victory three
hedge funds have scored in their battle over Albertsons’ $9.4
billion-plus acquisition of Safeway puts board members
everywhere on notice. Cerberus-owned Albertsons has agreed to
pay those investors 27 percent more than the amount all Safeway
shareholders have so far received from the deal since it closed
in January.

That in itself is a worry for board members everywhere. Such
appraisal rights lawsuits, as they are called, allow
shareholders to challenge the price paid for a takeover or
merger, as long as they don’t vote in favor of the deal. It’s
then up to a judge to decide whether more money is warranted.

Jun 1, 2015
via Breakingviews

Review: The slow, painful grind to safer banks

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Billie Jean Cherry hid over 100 boxes of unfiled documents in a storage unit across the street from the bank she helped run. Her long-time colleague Terry Church, after realizing the firm was about to go under, had even more records dumped into a truck from a window on the bank’s third floor, drove them to her house in the mountains of West Virginia and buried them in a trench 10 feet deep, 10 feet wide and 100 feet long.

    • About Antony

      "Antony Currie has more than a decade of experience as a financial journalist, having worked with Euromoney since 1996, most recently as a U.S. editor. He has worked on assignments in the major financial centers of Europe and the U.S. and written stories on capital markets, global economies and the investment banking industry. He holds a bachelor's degree in German language and literature and a master's degree in politics and international relations from the University of Bristol."
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