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from Breakingviews:

Tesco fails to answer key strategy questions

By Robert Cole

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

Tesco has let a golden opportunity go begging. The UK grocer could have built confidence in its future with a bold statement of strategy alongside a key set of half-year numbers. It could have taken the first steps to recovery. Yet Tesco appears as mired as ever.

The group has managed to draw a line under the accounting errors revealed in September, at least in terms of their financial impact. The resulting overstatement was nevertheless 13 million pounds above initial guidance of 250 million pounds. That Tesco turns out to have understated the overstatement is another dent to credibility. At least Chairman Richard Broadbent is demonstrating accountability and stepping down.

Still, there is no replacement for Broadbent just yet. And the investigation into the accounting issue has further exposed the depth of the failings in Tesco’s controls. The bad practices date back at least a couple of years.

from Breakingviews:

Adidas can’t afford to be sentimental about Reebok

By Olaf Storbeck

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

Unwinding the ill-fated acquisition of Reebok could offer a much-needed new start for German sportswear maker Adidas.

from Breakingviews:

Hong Kong weathers Occupy’s financial disruption

By Robyn Mak

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

Hong Kong’s economy is coping with pro-democracy protests, now heading into their third week. Some retailers and other businesses have suffered and traffic is bad, but the city’s financial system is undisturbed. A prolonged standoff between protesters and the government matters less to investors than the slowdown in consumption and spending in mainland China. Warnings that the movement would threaten Hong Kong’s financial health look misplaced.

from Breakingviews:

Sears’ Canada stake sale merits a discount

By Kevin Allison

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

Eddie Lampert is at it again. Less than three weeks after the hedge fund world’s Icarus figure-turned-retail boss announced he would lend Sears Holdings $400 million, the struggling store chain has announced a plan to raise more cash by selling down its stake in a Canadian subsidiary through an uncommon operation.

from Breakingviews:

Rocket and Zalando call top of Europe’s IPO market

By Olaf Storbeck

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

Highflying hopes of a renewed surge in European new issues have been hit by two rockets. Weak market debuts for internet fashion retailer Zalando and tech company incubator Rocket Internet appear to mark an early zenith for initial public offerings in the region.

from Edward Hadas:

In praise of restrained enterprise

By Edward Hadas

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

British supermarkets are doing something unusual. They are following the rules of textbook economics: responding to competition by cutting prices. Such behaviour is rare. While business bosses often say they admire free enterprise, we actually live in a restrained enterprise economy. Everyone should be grateful.

from Breakingviews:

PayPal forced to rev after eBay’s belated U-turn

By Rob Cyran

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

PayPal is compelled to accelerate after eBay’s belated U-turn. The $70 billion online auction company has for years resisted setting free its payments business, most recently digging in its heels against Carl Icahn’s demands to do so. Apple and Alibaba have created more urgency than investors, or Breakingviews, could. EBay squandered a big early advantage, but a spun-off PayPal may have a chance to play catch-up.

from Breakingviews:

UK retail fails to weather the patently obvious

By Robert Cole

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

Talking about the weather is a British national pastime. It cannot have escaped the notice of anyone living on an island in Europe’s north west fringe that it has been unseasonably warm in the last few weeks.

from Breakingviews:

Tesco chairman should step aside

By Chris Hughes

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

Tesco’s chairman should step aside. Richard Broadbent will struggle to restore market confidence in the troubled UK supermarket group, and to convince investors the board is on top of matters. This week’s accounting scandal has compounded existing concerns about his period at the helm. The priority should be an orderly handover to the right successor as soon as possible.

from Breakingviews:

Tesco chairman approaches his sell-by date

By Chris Hughes

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

Tesco’s latest crisis has put Richard Broadbent in the last chance saloon. The chairman of the UK retailer is ultimately accountable for any failures in the UK grocer’s governance. That includes any that lie behind the 250 million pound hole in the accounts, revealed on Monday.

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