John's Feed
Oct 22, 2015
via Breakingviews

Beijing backing for UK nuclear comes at high price

Photo

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

Building a nuclear power plant in the United Kingdom makes simple sense. Yet the UK’s new deal to construct the 18 billion pound Hinkley Point C with the help of France’s EDF and a Chinese state-owned nuclear power group is fiendishly complex.

Oct 22, 2015
via Breakingviews

Beijing backing for UK nuclear comes at high price

Photo

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

Building a nuclear power plant in the United Kingdom makes simple sense. Yet the UK’s new deal to construct the 18 billion pound Hinkley Point C with the help of France’s EDF and a Chinese state-owned nuclear power group is fiendishly complex.

Oct 20, 2015
via Breakingviews

Yum split offers value with chance of aftertaste

Photo

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

First comes the gratification, then the remorse. But does the cycle familiar to Yum Brands customers also apply to its investors? The U.S. owner of KFC has decided to split off its troubled China business, leaving two separately traded companies. The logical and potentially rewarding move comes with the chance of a less savoury aftertaste.

Oct 20, 2015
via Breakingviews

Yum split offers value with chance of aftertaste

Photo

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

First comes the gratification, then the remorse. But does the cycle familiar to Yum Brands customers also apply to its investors? The U.S. owner of KFC has decided to split off its troubled China business, leaving two separately traded companies. The logical and potentially rewarding move comes with the chance of a less savoury aftertaste.

Oct 19, 2015
via Breakingviews

China is unreliable new best friend for Britain

Photo

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

Britain is giving a superpower welcome to Chinese President Xi Jinping as he starts his five-day state visit. A failure to reciprocate on the things of any substance is virtually guaranteed. That doesn’t matter too much, so long as the United Kingdom is realistic about what courting China can achieve, and knows where its real friends are.

Oct 19, 2015
via Breakingviews

China’s wise men come down to earth with a bump

Photo

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

China invented the compass. Yet in a curious irony, the direction of the world’s second-largest economy has become more or less unreadable. The country’s GDP increased by 6.9 percent in the third quarter, the slowest rate in six years. What investors, corporate chieftains and others really want to know, though, is how well China will manage an alarming slowdown. The signs aren’t terribly encouraging.

Oct 16, 2015
via Breakingviews

Alibaba bid turns Youku from horror to mystery

Photo

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

The main thing streaming at video site Youku Tudou on Oct. 16 will be tears of relief. Alibaba, China’s biggest e-commerce company, has offered to buy the 82 percent of the company it doesn’t already own, at a 30 percent premium to the market price. A deal would end Youku’s loss-making run as a public company and help Alibaba realise its multi-screen strategy. Oh, and it should create value. Though that bit is most likely an afterthought.

Sep 18, 2015
via Breakingviews

Bud-SABMiller investors punch drunk on synergies

Photo

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

Budweiser brewer Anheuser-Busch InBev has yet to make a firm offer for rival brewer SABMiller, but the market is already tipsy on the potential for value creation. The companies’ market capitalisations had increased almost $30 billion by Sept. 18, two days after AB InBev’s interest was disclosed, roughly two-thirds of which accrued to SAB. Investors are infusing AB’s acquisitive Brazilian boss Carlos Brito with some considerable merger skills.

Sep 18, 2015
via Breakingviews

Bud-SABMiller investors punch drunk on synergies

Photo

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

Budweiser brewer Anheuser-Busch InBev has yet to make a firm offer for rival brewer SABMiller, but the market is already tipsy on the potential for value creation. The companies’ market capitalisations had increased almost $30 billion by Sept. 18, two days after AB InBev’s interest was disclosed, roughly two-thirds of which accrued to SAB. Investors are infusing AB’s acquisitive Brazilian boss Carlos Brito with some considerable merger skills.

Sep 14, 2015
via Breakingviews

Glencore model is battered but not broken

Photo

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

Glencore Chief Executive Ivan Glasenberg has been wrong-footed. His reputation has taken a bashing by the slump in minerals prices and China’s slowing appetite for commodities. Most painfully, he has had to adjust to shareholder worries about debt. Yet he was – and is – right to insist that Glencore’s unusual mix of mining with trading makes sense.

    • About John

      "John Foley is Reuters Breakingviews' editor for Europe, the Middle East and Africa. He relocated from Beijing in July 2015. John established Breakingviews’ Hong Kong bureau in 2009, and has written on China’s economy and financial system, mergers and acquisitions, capital markets and consumer goods. Follow John on Twitter @johnsfoley"
    • Follow John