Jul 29, 2013 03:22 UTC

Alibaba may be worth $100 bln – but not to Yahoo

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By John Foley

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

Alibaba is Yahoo’s best investment, and its most frustrating problem. The U.S. Internet group’s 24 percent stake in China’s biggest online retailer is probably worth more than Yahoo’s entire booked assets of $16 billion. But a future initial public offering, in which Yahoo has promised to sell half its shares, may deliver much less. That’s because Alibaba holds most of the cards.

Jul 25, 2013 09:26 UTC

Baidu digs deeper trench in China’s mobile wars

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By Robyn Mak and John Foley

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

Baidu is digging itself a deep trench in China’s mobile wars. The country’s biggest search engine by user traffic reported a 39 percent increase in revenue for the second quarter of 2013 compared to the same period in 2012. Mobile revenue hit over ten percent of total for the first time. Google and Facebook have shown how heavy investments can pay off over time. Yet the cost is high and margins get squeezed. In China, competitive lines are more blurred. Returns may be even longer in coming.

Jul 24, 2013 08:00 UTC

Apple overcomes China blues for now

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By Robert Cyran

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

Apple has overcome its China blues for now. One of the tech giant’s most reliable engines for growth has been booming Chinese demand. It flamed out during the quarter ended June 29, however, with revenue from the Middle Kingdom shrinking 14 percent. Solid sales in the larger U.S. market helped compensate, leaving revenue flat compared with the same period last year at $35 billion. But the performance shows just how badly Apple needs new products if it wants to shine again.

Jul 18, 2013 05:36 UTC

Vietnam is back in the game for buyout firms

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By Andy Mukherjee

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

As one of the world’s few remaining communist states, Vietnam’s relationship with foreign capitalists is complex. That hasn’t stopped private equity group Warburg Pincus closing the first tranche of a $200 million investment in the country’s largest mall owner. It’s early days, but for global investors Vietnam may be back in the game.

Jul 12, 2013 17:30 UTC

Fruity American M&A saga may be about to ripen

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By Jeffrey Goldfarb

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

An epic American M&A saga may be about to come full circle. Nearly 25 years after it was carved up in a landmark deal, much of fruit group Del Monte could be put back together. Along the way, the U.S. food giant has become an enormous part of Wall Street – and even City of London – lore. It’s practically a textbook unto itself for merger lawyers and bankers.

COMMENT

As soon as I saw the word “epic” in your story I quit reading. Please stop the use of this ridiculous word.

Posted by history10 | Report as abusive
Jul 11, 2013 11:45 UTC

Dash from emerging to developed markets hits new risks

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By Ian Campbell

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

Capital glut has become capital flight in emerging markets. Stock markets in developed economies may be the beneficiaries for now. But the switch merely exchanges one set of risks for another.

Jul 5, 2013 18:56 UTC

How regulators can restore trust in bank capital

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By George Hay

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

The Basel Committee just dealt another blow to the self-assessment of banking risk. This powerful group of global supervisors published new evidence on July 5 unmasking shortcomings in the models that tell lenders how much capital they need. For fans of the status quo, it makes gory reading.

Jul 5, 2013 14:26 UTC

Egyptian bourse euphoria is premature at best

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By Una Galani

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

This week’s euphoria for Egyptian equities is overdone. The prospect of calmer streets has sent the country’s benchmark index of 30 leading stocks up more than 12 percent since June 30, when protests against the Muslim Brotherhood government began – more than 7 percent on Thursday alone, when the military acted on its threat to force President Mohamed Mursi from power. That was the biggest one-day gain after a year of economic mismanagement under the deposed government.

Jul 5, 2013 05:04 UTC

China’s shipbuilding supertanker will turn slowly

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By John Foley

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

In 1433, China abandoned its costly maritime ambitions, forfeiting for centuries its chances of oceanic dominance. It is unlikely to make the same mistake again. While the tribulations of China Rongsheng show that the country’s modern shipping industry is in trouble, a sector with such strategic and symbolic importance can stay afloat long after its financial appeal has run dry.

Jun 28, 2013 09:02 UTC

China’s corporate spying is three-cornered problem

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By John Foley

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

American prosecutors have targeted Chinese wind turbine maker Sinovel for allegedly stealing secrets from a U.S. rival. The threat of a $4.8 billion fine for a company with total assets of $4.6 billion sounds potent. But it doesn’t address the economic conditions that make China a target for accusations of ideas theft. Call it the corporate espionage triangle.