Reuters blog archive

from India Insight:

Sketchy Details

Feeding The Baby


(Any opinions expressed here are those of the author and not of Thomson Reuters)

More in the Sketchy Details series

from Breakingviews:

China Mobile’s foreign foray risks meagre returns

By Ethan Bilby

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

China Mobile is using its cash pile to hunt for growth overseas. If past industry experience is any guide, however, returns could be meagre. Many other mobile operators have failed to create value through cross border tie-ups.

from The Great Debate:

Anatomy of an air strike: Three intelligence streams working in concert

axe -- bigger MQ-1_Predator_unmanned_aircraft

In a fast-moving war with an elusive foe like the Islamic State militants, information is as important as guns, jet fighters and bombs.

Sometime early this summer, U.S. Special Operations Forces launched a raid into Syria in an effort to rescue several American hostages being held by the group. But the commandos' information was out of date. The captives were no longer in the target area.

from Jack Shafer:

The Islamic State buys itself a day of horror, little else, by killing James Foley

By uploading a video of its execution of journalist James Foley to the Web on Tuesday, the Islamic State achieves the impossible: It re-executes him every time somebody presses play.

The horror of perpetual re-execution was obviously the Islamic State's goal. Nobody with a soul—knowing what's coming—can listen to Foley's speech without their hearts going full-throttle and shuddering at the murderous climax. For its troubles, the Islamic State has gotten a sliver of what it wants today. The story dominates the news. The video has become available on every desktop, laptop, and smartphone in the world. People are beseeching one another not to link to the video. Twitter CEO Dick Costolo has announced the suspension of accounts that tweet the graphic images, and the New York Post and Daily News are suffering a boatload of criticism for printing screen-grabs of the murder on their morning covers.

from Counterparties:

Standard incompetence

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Standard Chartered’s compliance department is apparently pretty bad at complying. In 2012, the bank was fined $340 million for hiding transactions with sanctioned Iran. As part of the settlement, Standard Chartered bank (SCB) was required to “remediate anti-money-laundering compliance problems,” Dealbook’s Ben Protess and Chad Bray report, and hire an outside monitor to judge whether the problems were in fact remediated.

They weren’t, and the bank will pay $300 million for “anti-money laundering failings in its United Arabs Emirates and Hong Kong businesses,” Reuters Michelle Price reports. The failures, laid out in a settlement with the New York Department of Financial Services, display an almost comical or willful ineptitude, depending on your perspective. SCB, the settlement says, “created a rulebook with procedures to aid it in detecting high-risk transactions.” But the rulebook was filled with errors that SCB didn’t know about, because it didn’t try to find out if the rulebook was adequate before or after it wrote it. This allowed transactions that should have been closely scrutinized to sail through unimpeded. To top it all off, SCB didn’t properly monitor its own transaction monitoring system. You can see why an independent monitor would be necessary.

from Data Dive:

Years of living dangerously

Yesterday, the Islamic State released footage of the beheading of American journalist James Foley, who was captured in Syria two years ago. The group also says it may execute another American journalist depending on the next moves of President Obama.

Reuters reports that the gruesome decapitation video seemed to suggest that the Islamic State was opening a new anti-U.S. front that could result in attacks on U.S. interests or even American soil. “The stronger the war against the States gets, the better this will help hesitant brothers to join us,” said one Islamic militant.

from Breakingviews:

Ballmer’s exit value is now Nadella’s to preserve

By Jeffrey Goldfarb

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

Steve Ballmer’s exit value is now Satya Nadella’s to preserve. Microsoft’s market capitalization swelled by over $100 billion from the day about a year ago when the 34-year veteran of the software giant said he would resign as chief executive until Tuesday, when he stepped down from the board of directors. With Ballmer fading from the picture, maintaining the momentum is now firmly up to new boss Nadella.

from Mark Jones:

Years of living dangerously

Years of living dangerously

from James Saft:

Buffett hoards cash, individuals’ holdings hit 14-year low

Aug 20 (Reuters) - Individual investors have been cutting
back on cash in portfolios, the exact reverse of what Warren
Buffett has been doing at Berkshire Hathaway.

Who do you think has got it right?

Cash at Berkshire Hathaway stood at just over $55
billion as of June 30, an all-time high and two and a half times
the level he's in the past said he likes to keep on tap to meet
extraordinary claims at his insurance businesses. That's also up
more than 50 percent from a year ago.