Breakingviews

Shake Shack unveils a cluckin’ $250 mln sandwich

May 22, 2015

The value of Danny Meyer’s upscale burger chain shot up 8.5 pct, seemingly on news that it may start outlets serving up chicken-based fare. Investors seeking signs of exuberance in wearables might do better looking at edibles. Shake Shack is now worth 550 times earnings.

Mystery sell-offs test Hong Kong at crucial point

May 21, 2015

Regulators are probing Hanergy, whose $40 bln value halved in a morning. Two once-hot stocks backed by Goldin Group have also plunged. Hong Kong wants to act as a gateway to China for global investors. So maintaining a transparent, orderly market is more important than ever.

Japan stocks can rise beyond symbolic Nikkei high

April 23, 2015

The index closed above 20,000 for the first time since 2000. Though Japan’s bull market is more than two years old, a trade deal with the United States could make returns still sweeter for investors. Stronger corporate earnings and more money-printing could also boost equities.

Hong Kong stock boomlet tests China’s capital dam

April 9, 2015

A trickle of Chinese money pouring into Hong Kong stocks via a new trading link has turned into a flood. The arrival of mutual funds is a factor, but a bigger one is speculation on the wall of money bursting to get out of the mainland. The dam is sturdy, but pressure is building.

Why silencing short-sellers is futile

April 8, 2015

Asian companies and regulators are coming down hard on authors of negative research reports. Though it’s possible to track down even anonymous assailants, it’s tougher to prove the attacks were wrong or reckless. Executives have little choice but to face up to their critics.

Tata Motors’ $1.2 bln share issue is well timed

April 1, 2015

The carmaker wants to raise cash to reduce debt and fund growth. Its struggling domestic unit, propped up by Jaguar Land Rover, is benefiting from a recent change in strategy. A full turnaround will depend on a pickup of economic activity in India.

Singapore Exchange’s next CEO faces ho-hum job

February 25, 2015

Departing chief Magnus Bocker’s successor will inherit a business suffering from existential angst. Trading volumes are static and big listings scarce. The outlook is brighter for derivatives, but given the absence of M&A targets it will be hard for debt-free SGX to grow.

London’s FTSE can extend its record-breaking run

February 24, 2015

At long last, Europe’s big name equity index has entered new territory. Yet while the FTSE 100 is higher than ever, and is hardly risk-free, it is also attractive. It is cheaper than the leading U.S. and pan-European benchmarks and has alluring diversity.

Activists take on passivists in HK share spat

February 12, 2015

Hedge fund Elliott has challenged Bank of East Asia’s plan to issue a slab of stock to a friendly shareholder. Investors can theoretically stop these kinds of deal, but often don’t. The activists’ chance of success is slight, but they raise some good questions.

Rob Cox: When CEOs are worth more as former CEOs

February 5, 2015

Investors this week applauded the abrupt exits of bosses at Ally and Petrobras, whose market value surged by $8 bln. Ousters at McDonald’s recently and Microsoft in 2013 earned similar welcomes. The common thread seems to be relief after a CEO becomes entrenched and inflexible.