Oct 30, 2013 20:21 UTC

Chrysler needs $18 bln valuation to justify IPO

Photo

By Antony Currie

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

Chrysler’s valuation needs to hit $18 billion to justify an initial public offering. That’s the point where the union trust fund that owns 41.5 percent of the Detroit automaker would reap more than it could get from controlling shareholder Fiat. But it’s also way more than either owner has ever considered to be a reasonable price.

Oct 29, 2013 16:36 UTC

Deutsche’s fixed-income pain could exceed rivals’

Photo

By Dominic Elliott

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

Deutsche Bank’s third-quarter hit in fixed-income trading could presage a painful loss in market share. The German bank suffered a 48 percent fall in third-quarter debt sales and trading revenue – as bad as any peer. And things could get tougher still.

Oct 29, 2013 16:08 UTC

Apple’s simplicity complicated by status quo

Photo

By Robert Cyran

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

Apple’s simple story is complicated by the status quo. Fourth-quarter results released on Oct. 28 contain plenty of encouraging elements. It’s just that each comes with an asterisk.

Oct 28, 2013 03:44 UTC

One idea Samsung could safely copy from Apple

Photo

By Una Galani

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

Here’s one idea that Samsung could safely copy from Apple. As a proportion of its $221 billion market capitalization, the South Korean giant’s near $40 billion cash pile is almost as big as that of its U.S. arch rival. With reserves accumulating fast, it can afford to mimic Apple by giving more to investors.

Oct 24, 2013 08:14 UTC

China bank IPO shows rewards of financial alchemy

Photo

By John Foley 

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

Financial innovation is paying off for Bank of Chongqing, a small Chinese lender preparing for a $2 billion stock market listing in Hong Kong. What sets the bank apart isn’t its enviable 32 percent return on equity, but its copious use of what might be China’s most baffling securities.

Oct 23, 2013 04:13 UTC

Li Ka-shing still has what investors want

Photo

By Una Galani

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

Li Ka-shing may be an octogenarian but he still knows when to buy and sell. An analysis of 16 listed parts of the Hong Kong tycoon’s telecoms-to-energy empire, with a combined market capitalization of more than $170 billion, shows a mixed record of delivering shareholder returns. Yet Li’s flagship holding companies have matched or beaten the market over the past two and five years. For investors, it pays to invest as close as possible to the man himself.

Oct 22, 2013 04:07 UTC

Alibaba creative governance should come at a cost

Photo

By John Foley

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

New York and Hong Kong differ on shareholder democracy. Alibaba, China’s biggest e-commerce company, has received approval from U.S. stock exchanges to let a partnership of senior executives nominate most of its directors. Hong Kong rebuffed the idea on principle. Investors in a future initial public offering must now decide what that principle is worth.

Oct 18, 2013 15:09 UTC

Europe’s investors miss value cues, again

Photo

By Robert Cole

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

It is one of the oldest rules in the investment book: buy what’s cheap, sell what’s expensive. The current crop of European fund managers must have slept through that lesson.

Oct 10, 2013 18:24 UTC

Tech disruptors could save China’s savers

Photo

By John Foley

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

The biggest threat to Chinese banks’ cozy oligopoly may be in the palm of your hand. Online groups Alibaba and Tencent are making incursions into the country’s financial services market, providing an alternative to the capped deposit rates and sluggish service offered by the country’s big lenders. The disruptors are taking on risks, and savers should be glad.

Oct 10, 2013 08:39 UTC

China’s Bakrie burns may have less sting

Photo

By Una Galani

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

China’s Bakrie burns may have less of a sting. Like financier Nat Rothschild, China Investment Corporation has been scorched by its association with Bumi Resources. Following a $1.3 billion debt swap, the sovereign fund has gone from a major creditor to minority investor in the Indonesian miner.