They both have austerity in varying degrees but UK growth is now pushing ahead of the euro zone’s. The UK’s flexible labour market and weakened pound are advantages. A Germanically strong euro weighs heavily on a euro zone where monetary policy can’t solve the profound problems.
AB InBev could pay $4.1 billion to buy back the subsidiary it sold to KKR in 2009. On a back-of-the-beermat calculation OB’s private equity backers could see a 34 percent annualized return. Even if the Belgium brewer abstains, local markets may support a similar valuation.
A second straight gain in October pushed the Breakingviews Abenomics index to its highest since the 2008 crisis. But Prime Minister Shinzo Abe must worry about the durability of the recovery. Wage gains aren’t yet large enough to compensate households for rising prices.
Being bought by smaller rival Charter would create a debt-laden $100 bln cable giant. Turning the tables would require less borrowing and keep the cost savings. If nothing else, according to a Breakingviews calculator, the idea could point to a higher price for Time Warner Cable.
New boss Mary Barra has a reputation for both good design and keeping a firm handle on costs. That’s what the automaker, freshly liberated from the U.S. government, needs as it chases more profitable rivals. GM also appointed an independent chairman for good governance measure.
As world leaders remember a great statesman, they may ponder South Africa’s middle-income trap. Compared with other post-colonial economies, even stagnation would be a tribute to Mandela’s peace-making. It’s up to those who followed him to buck recent trends and escape the trap.
The opposition politician is the favourite to become prime minister in next year’s polls. His victory would give Indian assets a big boost and signal revived growth, just like it did for his Japanese counterpart. Structural reforms, though, will remain difficult for both leaders.
Sysco’s $3.5 bln purchase of US Foods received a rapturous reception with the buyer’s stock surging by as much as a quarter, or $5 bln. Hefty cost savings help the merger math. With this sort of reaction to deals, acquirers’ animal spirits won’t remain suppressed for long.