Oct 9, 2014 14:07 UTC

European IPO wobble is about more than volatility

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By Quentin Webb

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

Europe’s IPO wobble is about more than volatility. With initial public offerings in France and Italy being pulled, companies and advisers are, as ever, blaming choppy markets. There’s some truth in this old bromide. But the misfiring of two big internet debuts also matters. Europe’s economy is faltering. And a busy year for new deals has made investors both less flush and more discriminating.

Oct 9, 2014 07:15 UTC

Tianhe investors sell first, ask questions later

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By Peter Thal Larsen

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

Investors in Tianhe Chemicals are selling first and asking questions later. Shares in the Chinese company plunged by as much as 45 percent when they resumed trading after anonymous fraud allegations. Despite the company’s detailed rebuttal, some of the dirt has stuck. Big shareholders may have to reach into their pockets to restore confidence.

Oct 8, 2014 17:29 UTC

Traders need help to make Wall Street shine

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By Antony Currie

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

Wall Street’s fixed income trading desks welcomed a rare return of volatility. It probably hasn’t been enough, though, to ensure decent profitability for Goldman Sachs, JPMorgan and Morgan Stanley in the quarter just ended. They’d need to generate up to $12 billion of extra revenue among them trading bonds, foreign exchange and commodities to achieve a return on equity of 15 percent.

Oct 7, 2014 13:50 UTC

Rio Tinto can dig in against Glencore

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By Quentin Webb

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

Rio Tinto can dig in against Glencore. On Oct. 7 the miner admitted rebuffing an approach in July from the commodity trading giant. Fair enough. The timing seems expedient following a slump in Rio’s dominant product, iron ore. A $160 billion “merger” also smacks of a takeover on the cheap. Rio can justifiably demand a real premium or no deal.

Oct 7, 2014 06:48 UTC

Jumbo $6 bln bank IPO shows Saudi too big to miss

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By Una Galani

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

Saudi Arabia’s jumbo bank offering shows the soon-to-open emerging market is too good to miss. The kingdom’s top lender by assets is planning to sell shares worth $6 billion, making it the biggest-ever initial public offering in the Middle East and second only to China’s Alibaba in the world this year. For most outsiders, it’s a reminder of the opportunities that will open up when foreign investors are granted direct access to the country’s $584 billion stock market next year.

Oct 6, 2014 15:57 UTC

Meg Whitman at last splits Hewlett from Packard

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By Rob Cox

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

Hewlett and Packard are finally going their separate ways. Not literally, of course, as the founders of the Silicon Valley technology conglomerate that bears their names have long shuffled off this mortal coil. But the company now led by Meg Whitman is breaking in two.

Oct 3, 2014 18:17 UTC

Sears’ Canada stake sale merits a discount

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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.

Oct 3, 2014 17:43 UTC

Coke challenge goes beyond revising pay plan

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By Kevin Allison

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

Coca-Cola’s challenge goes beyond revising its controversial equity compensation plan. The beverage giant’s retreat from the scheme is a win for Warren Buffett, investor David Winters and the company’s other shareholders. But the quibbles with Coke don’t end with excessive remuneration.

Oct 3, 2014 11:12 UTC

Rocket and Zalando call top of Europe’s IPO market

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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.

Oct 2, 2014 07:30 UTC

BofA delivers good governance a kick in the teeth

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By Antony Currie

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

Bank of America has just delivered good governance a solid kick in the teeth. The mega-bank announced late Wednesday that its directors have voted to add the chairmanship to Brian Moynihan’s duties as chief executive. The move not only puts too much power in one person’s hands, it also reduces the position to little more than a perk to be granted or taken away, depending on performance.

COMMENT

After such stellar accomplishments as becoming the most penalized US bank in terms of regulatory fines; the most hated US bank in terms of consumer complaints to the CFPB; and being know as the bank whose ridiculous $5 charge just to carry a debit card sparked the Occupy Wall Street Movement, the B of A Board decides to ‘reward’ Brian Moynihan by adding the title chairman to CEO. The fact that this combined management structure for a Too Big To Behave Bank has been widely criticized for removing important safeguards, only adds to the impression that things are out of control at this institution.

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