Sep 18, 2013 20:29 UTC

Jefferies shows fixed income isn’t for everyone

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

Jefferies shows that fixed income isn’t necessarily for everyone. The revenue the U.S. investment bank generated from trading bonds, currencies and commodities slumped 85 percent, to just $33 million, in the three months to September. That’s a far bigger drop than its larger rivals across Wall Street are expecting. As a relative newcomer, Jefferies appears to be struggling with volatility. The same may prove true for others that are downsizing their FICC businesses.

Sep 18, 2013 16:59 UTC

Twitter prospectus edits will be worth following

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By Richard Beales and Robert Cyran
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

New U.S. rules mean Twitter’s initial public offering paperwork, already filed with regulators, isn’t yet open to scrutiny.

Sep 17, 2013 18:18 UTC

Pandora may spin new theme song: The Consolidator

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

Pandora looks like it’s spinning a new theme song: The Consolidator. The $4.3 billion internet radio firm is still losing money and the industry’s growth is slowing. Yet the stock has been on a tear, up more than 150 percent since the start of the year. Selling shares prudently shores up the balance sheet. It also gives the new boss – who knows about M&A – a chance to buy smaller rivals nipping at Pandora’s heels.

Sep 17, 2013 14:16 UTC

Smooth Lloyds sale is mixed omen for bank ECM

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By Dominic Elliott

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

The ease with which the UK government has offloaded 3.2 billion pounds of shares in Lloyds Banking Group is a mixed omen for bank equity sales. The disposal was perfectly timed and expertly sized. But unusually strong demand from U.S. funds was also a critical factor in its success.

Sep 17, 2013 08:08 UTC

China’s online land grab risks value mudslide

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By John Foley

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

China’s internet dealmakers are on a defensive offensive. Tencent’s $448 million purchase of a stake in search engine Sogou from its owner, U.S.-listed Sohu, is the latest attempt to stop competitors snapping up a bite-sized competitor. When cash is abundant and investors forgiving, that kind of land grab can turn into a value mudslide.

Sep 16, 2013 20:18 UTC

Memo to Fiat on Chrysler listing: Drop it!

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Fiat’s Chief Executive Sergio Marchionne passes for a tough and canny negotiator. These skills have brought him control over 58.5 percent of Chrysler at a bargain basement price of less than $2 billion. However, in his attempt to buy the remaining 41.5 percent currently owned by VEBA, a healthcare trust affiliated with the United Auto Workers, Marchionne may over-egg the pudding.

Fiat and VEBA have been embroiled for more than a year in a spat about Chrysler’s appropriate valuation. The tussle, which already involves a court case, may lead to the listing of a 16.6 percent Chrysler stake in the coming months.

Sep 16, 2013 14:12 UTC

Lloyds’ shares look a better bet than Barclays’

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By George Hay

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

Investors looking for a cheap way into the UK banking sector are spoilt for choice. The government is preparing to sell down its 39 percent stake in Lloyds Banking Group, probably through a discounted share placing. Rival Barclays is about to launch a 5.8 billion pound rights issue. Barclays’ shares are cheaper, but Lloyds is the safer investment. On balance, Lloyds looks better value.

Sep 13, 2013 17:45 UTC

Dell hell concludes, lessons probably unlearned

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

The hell that was Dell has at last ended. But its lessons will probably go unlearned. Shareholders have finally approved the $25 billion buyout by founder Michael Dell and Silver Lake, after three postponed votes and a measly two percent price increase. Overconfidence and delay got the better of both sides – and speculators succumbed to their overactive imaginations.

Sep 12, 2013 18:00 UTC

2008 retold: Lehman bail-in averts broader crisis

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By Daniel Indiviglio and Rob Cox
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Lehman as it might have been … The following  is part of a special feature package marking the fifth anniversary of the collapse of the Wall Street securities firm. Breakingviews writers imagine what might have happened if post-crisis reformers had acted pre-crisis. Herewith a column  from that alternative archive.
New York – Sunday Sept. 14, 2008

Sep 12, 2013 17:54 UTC

2008 retold: EU bank bail-in saves taxpayer bacon

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By George Hay and Neil Unmack
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Lehman as it might have been … The following  is part of a special feature package marking the fifth anniversary of the collapse of the Wall Street securities firm. Breakingviews writers imagine what might have happened if post-crisis reformers had acted pre-crisis. Herewith a column  from that alternative archive.