Apr 4, 2014 05:43 UTC

China stock market opening is opposite of Big Bang

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By Peter Thal Larsen

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

China’s approach to opening up its stock market is the opposite of a Big Bang. Investors are once again getting excited about the prospect of mainland shareholders being allowed to buy Hong Kong stocks. But such hopes have proved premature before. As with any loosening of China’s capital controls, progress is bound to be gradual.

Apr 3, 2014 06:20 UTC

Alibaba shopping spree needs better explanation

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By Robyn Mak

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

Alibaba’s shopping spree needs better explanation. The Chinese e-commerce giant has spent $3.8 billion on acquisitions and investments since 2013. The land grab may excite prospective investors ahead of its long-awaited initial public offering (IPO). But Alibaba will eventually have to justify its purchases.

Mar 28, 2014 18:26 UTC

Review: Moneyball flaws can be found in finance

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By Martin Hutchinson

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

Moneyball flaws can be found in finance. “The Sabermetric Revolution,” a new book just in time for the start of the Major League Baseball season on March 30, debunks some of the numerical craze sweeping the sport. Two Smith College professors expose how many of the statistics rely on poor measurement, dodgy theory and over-extrapolating small data sets. Even good metrics tend to get arbitraged quickly. Just like on Wall Street.

Mar 28, 2014 18:20 UTC

Boards’ defender-in-chief keeps fighting last war

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By Reynolds Holding

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

Corporate boards’ defender-in-chief keeps fighting the last war. Lawyer Marty Lipton proved again at the New Orleans M&A confab that he can give as good as he gets. But prior panelists’ emphasis on improving governance and shareholder value made his swipes at activists seem dated. The legal lion’s roars are sounding more stubborn than persuasive.

Mar 21, 2014 18:39 UTC

Bouygues’s latest SFR offer may still fall short

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By Quentin Webb

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

Bouygues’s latest pitch for SFR may still fall short. The French building, TV and telecoms group has made a new offer for Vivendi’s mobile unit, with 1.85 billion euros more cash and heavyweight backers. That puts extra pressure on preferred bidder Patrick Drahi, soon after he began three weeks of exclusive talks to buy France’s no. 2 wireless carrier. But Bouygues still poses greater antitrust risks. It may need to offer more equity in the combined vehicle – and a big break fee.

Mar 21, 2014 06:13 UTC

Li & Fung revival depends on more than split

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By Peter Thal Larsen

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

Li & Fung has embraced financial engineering. The Hong Kong trading house, which grew to prominence by helping Western companies find cheap factories in Asia, has announced plans to spin off its branding arm into a separate unit. Though investors welcomed the news, any sustained re-rating requires both bits of the company to demonstrate they can deliver organic growth.

Mar 20, 2014 13:04 UTC

Euro zone periphery trade is running out of gas

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By Neil Unmack and Fiona Maharg-Bravo

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The euro zone periphery trade is running out of gas. Investors keen on a recovery story have been piling into assets in Spain, Italy, Portugal and Greece for over 18 months now. But some periphery assets are looking expensive. Further gains need two tricky conditions to be satisfied.

Mar 19, 2014 06:35 UTC

Japan stock market selloff is a temporary setback

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By Peter Thal Larsen

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

Japan’s stock market has suffered a temporary setback. The country’s equity indices have dropped more than 10 percent this year in local currency terms. With the central bank on standby for more easing, however, Japanese stocks should benefit from home support.

Mar 17, 2014 15:15 UTC

Market adjustment is not over yet

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By Ian Campbell

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

The golden fear gauge is rising. Gold is up to a six-month high of $1,383 an ounce. A more serious equity and commodity meltdown threatens as markets grow more uneasy about Ukraine, China, emerging economies and global growth. Gold may go a bit higher still – but its rally too may soon prove vulnerable.

Mar 17, 2014 06:32 UTC

Weibo IPO sets bar low for Alibaba

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By John Foley 

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

Imagine the riskiest possible share offering. It would be a new, unprofitable company with rapid and uncertain growth in an emerging market. One whose customers are fickle, which lives under the constant threat of being snuffed out by regulators, and where external shareholders are dominated by insiders. The listing of Sina Weibo fits the bill. The Twitter-like microblog has also set a low bar for the upcoming market debut of e-commerce giant Alibaba.