Aug 5, 2014 18:17 UTC

Gannett split puts digital on wrong side of divide

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By Jeffrey Goldfarb

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

Gannett is redefining the digital divide. The media conglomerate unveiled plans on Tuesday to spin off newspapers, including USA Today, to showcase the value of its broadcasting operations. At the same time, the company will take control of the parent of Cars.com, paying $1.8 billion for the 73 percent it doesn’t already own. Instead of using that online asset to buffer the weaker half, however, Gannett is forcing print to stand on its own.

Aug 5, 2014 11:30 UTC

BES bail-in leaves CDS traders struck out

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By Neil Unmack

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

Banco Espirito Santo’s bail-in has been a nice earner for some bond traders. Anyone who bet that Portuguese authorities would save senior creditors but burn bonds lower down has made a killing. But anyone who tried to follow suit with BES credit default swaps will be feeling much less cheery.

Aug 5, 2014 06:00 UTC

Microsoft’s China dream sorely strains credibility

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By Ethan Bilby

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

Xbox gamers fear the “red ring of death”, a flashing light that can herald system failure. Microsoft, which makes the consoles, must be awaiting a similar sign in China. After 22 years, the tech giant has achieved little in the country, which looks to account for around 2 percent of revenue. Cloud services may multiply that over time, but political headwinds are raising the cost of business – possibly too high.

Aug 4, 2014 18:45 UTC

Vladimir Putin is the new bad weather

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By Richard Beales and Jeffrey Goldfarb

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

Vladimir Putin is not just bad news but also bad weather. Unrest in Ukraine has become the bogeyman to replace snow when a company’s profit hopes need to be managed downward. Just ask Volkswagen or McDonald’s. The World Cup goes the other way, helping Twitter and maybe Walt Disney. The message could be muddled in four years when Russia and soccer converge.

COMMENT

Putin is waiting for winter to come.In the whole game his hand is up.Release of oil from US is expensive due to transport cost and is not enough for whole EU and Ukraine.Putin can bear sanctions with support of Asian countries.I am not prorussian but the so far events indicate.

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Aug 1, 2014 11:33 UTC

French T-Mo bid looks like peak TMT Entrepreneur

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Quentin Webb

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

TMT-men are the superheroes of finance today. A market boom has let telecoms, media and technology dealmakers such as John Malone of Liberty Global and Masayoshi Son of SoftBank finance ever-bigger dreams. Xavier Niel, the billionaire behind French telecoms group Iliad, is now bidding $15 billion in cash for 56.6 percent of T-Mobile US, listed but two-thirds owned by Deutsche Telekom. Maybe this idea should have stayed in the lab.

Aug 1, 2014 06:29 UTC

U.S.-backed China tech shows investment curb folly

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By Robyn Mak

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

China’s tech companies may be Beijing’s darlings, but they have U.S. dollar funding to thank. The next generation of upstarts look likely to continue the pattern. Foreign currency funds poured $5 billion into venture capital the first half of this year – three times more than local funds raised. The economic benefits these foreign investors bring make the rules keeping them out harder to justify.

Jul 31, 2014 21:57 UTC

Yahoo’s Mayer nears post-Alibaba reckoning

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By Richard Beales

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

Yahoo is a big company with a much smaller one struggling to get out. A 22.5 percent stake in Alibaba accounts for well over half the U.S. internet group’s roughly $36 billion market capitalization, according to a new Breakingviews calculator. With the Chinese e-commerce giant likely to go public next month, Yahoo Chief Executive Marissa Mayer will find out how investors value the businesses she actually runs.

Jul 31, 2014 14:26 UTC

Shock loss at BES makes bail-in a real risk

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By George Hay

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

A solution to the Banco Espirito Santo debacle looks increasingly likely to involve creditors. The troubled Portuguese lender revealed a much bigger-than-expected 3.6 billion euro loss on July 30 and warned of possible past law-breaking. If the kitchen-sinking was intended to help fill BES’s capital deficit with private investment, it may not work.

Jul 31, 2014 06:53 UTC

Line’s $13 bln valuation shows chat app exuberance

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By Robyn Mak and Una Galani

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

Line’s apparent $13 billion valuation sends a strong signal about chat app exuberance. The Japanese mobile messaging app’s quarterly revenue jumped 26 percent from the previous three months, its parent company reported on July 31. That pushes up valuation expectations ahead of its planned initial public offering. Yet Line’s valuation hangs on the assumption that new overseas users will spend like those back home. That seems like wishful thinking.

Jul 29, 2014 15:54 UTC

MetLife CEO should revel in his anonymity

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By Rob Cox

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

Quick, who’s the chief executive of MetLife? That the name Steve Kandarian doesn’t roll off the tongue for almost anyone who isn’t deeply steeped in the insurance business is probably a good thing for his shareholders. How he handles his company’s inevitable designation later this week as a systemic threat to the financial industry could change that. A Jamie Dimon-style public spat with regulators would be foolish. Better to speak softly, and keep the CEO’s relative anonymity intact.