Jan 12, 2015 22:11 UTC

Tech steering carmakers down valuation dead end

Photo

By Antony Currie and Olaf Storbeck

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

Carmakers are on something of a roll as they convene in Detroit. In the years to come, however, technology could make the ride rougher.

Jan 12, 2015 16:53 UTC

Cheap oil lubricates Li Ka-shing’s corporate rejig

Photo

By Una Galani

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

Cheap oil could be vital to Li Ka-shing keeping control of his empire. Asia’s richest man is selling a 6 percent stake in Husky Energy to his holding company as part of a broader shake-up. The move is vital to maintaining Li’s grip on his telecom, retail and property businesses. The recent fall in the oil price makes it harder for shareholders to object.

Jan 12, 2015 15:16 UTC

Shire gambles AbbVie break fee on risky $5 bln deal

Photo

By Neil Unmack

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

Shire is gambling its AbbVie break fee on risky M&A. The Dublin-based pharma group has agreed to buy U.S. peer NPS to expand in lucrative rare drugs. The 51 percent premium is covered almost entirely by compensation from the collapse of Shire’s sale to larger American rival AbbVie last year. That doesn’t much mitigate the risk of doing a deal ahead of a key regulatory ruling.

Jan 9, 2015 20:51 UTC

Proxy fight as much about Peltz’s Trian as DuPont

Photo

By Kevin Allison

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

Nelson Peltz’s latest proxy fight will resonate beyond its immediate target, DuPont. The billionaire activist’s Trian Partners is seeking four director seats at the venerable chemicals group, its first public battle since squeezing onto Heinz’s board nine years ago. Flexing muscle sends a message to other stubborn targets, like PepsiCo. It also gives Peltz’s potential successors experience in the trenches.

Jan 8, 2015 15:50 UTC

StanChart equities closure is overdue but welcome

Photo

By Peter Thal Larsen

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

For most investment banks, underwriting and broking equities is a poor business. Revenue rarely exceeds the costs of providing the service. Yet most institutions insist the business is essential. Standard Chartered just became a rare but welcome exception.

Jan 8, 2015 15:44 UTC

Dick’s buyout has financially sporting chance

Photo

By Kevin Allison

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

Dick’s Sporting Goods may become the next private equity plaything. The $6 billion basketball-to-fishing vendor is mulling a leveraged buyout, according to a Reuters report on Wednesday. A relatively clean balance sheet means there’s an opportunity to make money. It would, however, require healthy growth assumptions for $6.1 billion Dick’s at a time when stiff online competition is challenging many retailers.

Jan 6, 2015 21:09 UTC

Coach tries LVMH model on for size with shoe buy

Photo

By Stephanie Rogan

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

There can be no clearer admission that Coach has exhausted the growth opportunities of its core brand than the $574 million purchase of luxury shoe-maker Stuart Weitzman. Yet for shareholders, who have lopped off half of the company’s value since 2012, Coach’s acceptance of its limitations offers a sign of hope. Coach is betting it can use its know-how to expand other, smaller brands like LVMH and Kering have.

Jan 6, 2015 15:18 UTC
Guest Contributor

Guest view: Banks need to lead on cultural change

Photo

By William Rhodes

William Rhodes, a former Citigroup executive, is president and chief executive of William R. Rhodes Global Advisors and author of “Banker to the World.”

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

Jan 6, 2015 12:52 UTC

Petrodollar drought is new risk for markets

Photo

By Swaha Pattanaik

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

Low oil prices hurt energy producers. They may hurt financial markets too.

For years, energy windfalls were large enough to give major oil producing nations surplus cash. Exporters accumulated foreign exchange reserves and put money into funds which aimed at stabilising economies, paying pensions or just earning a return on investments. The total assets under management of these “petrodollar” investors increased by $2.5 trillion between 2009 and 2014, according to Citi analysts’ calculations.

Jan 5, 2015 17:12 UTC

A double-speak guide to modern markets

Photo

By John Foley and Rob Cox

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

As the market perpetually shifts, so do the rhetorical stylings its players use to talk their way out of problems. The past year saw above-average creativity when it came to saying one thing and meaning another. Here, Breakingviews offers up 10 euphemisms we’d most like to see disappear.