Antony's Feed
Jun 12, 2013

Fannie, Freddie shareholders in cloud cuckoo land

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

By Antony Currie

NEW YORK, June 12 (Reuters Breakingviews) – Sometimes,
matters are just too obvious to be appreciated. That’s the only
plausible explanation for why some investors who owned common or
preferred stock in Fannie Mae (FNMA.OB: Quote, Profile, Research) and Freddie Mac
(FMCC.OB: Quote, Profile, Research) in September 2008 are suing the U.S. government for
$41.5 billion.

Jun 11, 2013

Megabank mastermind sort of counts small blessings

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

By Antony Currie

NEW YORK, June 11 (Reuters Breakingviews) – A megabank
mastermind is turning his back on size – to a point. Hugh
McColl, an architect of today’s Bank of America (BAC.N: Quote, Profile, Research), is
selling his tiny advisory firm. The buyer is equally small and
the middle-market deals on which they typically advise are a far
cry from the landmark ones that defined McColl’s career. And yet
there’s evidence of a certain mindset that hasn’t entirely
disappeared.

Jun 3, 2013
via Breakingviews

Elon Musk has to sell 540,000 Teslas a year

Photo

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

Chief Executive Elon Musk has to sell 540,000 Tesla vehicles a year. At least that’s what may be needed for the electric automaker to be worth $43 billion, according to a Breakingviews calculator. Reaching that stock market valuation by 2022 is one target in Tesla’s rocket-scientist founder’s long-term incentive plan. Hitting that and 10 operational targets could, on simplified assumptions, bag him up to $1.8 billion.

May 20, 2013
via Breakingviews

Dimon has little to lose in shareholder vote

Photo

By Antony Currie

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

Jamie Dimon has little to lose if JPMorgan’s shareholders choose to split the chairman and chief executive roles at Tuesday’s annual meeting. Quitting, a response that has been hinted at by the board in recent weeks, would be a rather childish move. There are better options for all concerned.

May 16, 2013
via Breakingviews

Rest of world wishes for Australia’s economic woes

Photo

By Antony Currie

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

Listening to the Australians, you could be forgiven for thinking their economy is dead in the water – or about to be. The land Down Under has its problems, including a China-driven commodities downturn and an A$18 billion deficit ($17.9 billion) in this week’s budget announcement from Treasurer Wayne Swan, months after he projected a surplus. But the economy, now in its 22nd year of unbroken economic growth, still boasts the stability other countries only dream of.

May 14, 2013
via Breakingviews

Tesla shareholders are pulling ahead of themselves

Photo

By Antony Currie

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

Tesla’s shareholders seem to be assuming Chief Executive Elon Musk is infallible. The $10 billion U.S. electric carmaker is on a roll, last week recording its first quarterly profit and receiving the best score the Consumer Reports publication has bestowed on a car for six years. The company’s stock has since surged as much as 70 percent, leaving Tesla worth more than Fiat and Peugeot combined and trading at a whopping 27 times estimates for earnings in 2016.

May 8, 2013

Shareholders wise up to Pactual’s lumpy earnings

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

By Antony Currie

NEW YORK, May 8 (Reuters Breakingviews) – Shareholders in
the Brazilian version of Goldman Sachs (GS.N: Quote, Profile, Research) appear to be
getting wise to its lumpy earnings. BTG Pactual (BBTG11.SA: Quote, Profile, Research), run
by Andre Esteves, missed estimates in the first quarter and
posted one of its lowest returns on equity since going public in
Sao Paulo. It’s still a decent performer. But as Pactual’s
American rival discovered in years past, investing its own money
isn’t always all it’s cracked up to be.

Apr 24, 2013
via Breakingviews

Return to glory days may elude Japan’s automakers

Photo

By Antony Currie

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

The weakening yen is good news for Japan’s automakers. The more than 20 percent drop in the currency’s value against the dollar since early October will boost profit from overseas sales – and probably market share, too. A return to the glory days of 2006, though, is likely to prove elusive.

Apr 2, 2013

Nasdaq paying price of dealmaking gone wrong

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

By Antony Currie

NEW YORK, April 2 (Reuters Breakingviews) – Nasdaq OMX
(NDAQ.O: Quote, Profile, Research) may be paying the price of dealmaking gone wrong.
Nearly two years after failing to supersize itself by acquiring
NYSE Euronext’s (NYX.N: Quote, Profile, Research) equities business, the bourse is aiming
smaller with a $750 million plan to buy eSpeed, an electronic
bond-trading operation. Investors erased 90 percent of the price
tag from Nasdaq’s market value. The excessive skepticism ignores
the target’s income and the buyer’s cost discipline.

Mar 26, 2013
via Breakingviews

Goldman and Buffett scratch each other’s backs

Photo

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

Goldman Sachs and Warren Buffett have found a way to scratch each other’s backs – again. The mutual assistance started during the crisis when the Sage of Omaha stepped in with a $5 billion rescue investment in 2008 that provided him with a healthy 10 percent yield on Goldman preferred shares. Now, they’re amending terms of warrants granted to Buffett in the same deal that also works well both ways.

    • 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."
    • Follow Antony