Kevin's Feed
Oct 16, 2015
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Treasury’s Puerto Rico superbond looks half baked

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

The U.S. Treasury’s Puerto Rico superbond idea looks half baked. The cash-strapped Caribbean territory and the federal government in Washington are said to be mulling a plan to swap some of the island’s $72 billion of debt for a new debenture that would be paid from a U.S. Treasury-administered kitty. The idea is politically fraught and may not work – and a poor substitute for a financial control board or Chapter 9 bankruptcy.

Oct 16, 2015
via Breakingviews

Treasury’s Puerto Rico superbond looks half baked

Photo

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

The U.S. Treasury’s Puerto Rico superbond idea looks half baked. The cash-strapped Caribbean territory and the federal government in Washington are said to be mulling a plan to swap some of the island’s $72 billion of debt for a new debenture that would be paid from a U.S. Treasury-administered kitty. The idea is politically fraught and may not work – and a poor substitute for a financial control board or Chapter 9 bankruptcy.

Oct 14, 2015
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Wal-Mart outpaced by mass-market trends

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

Wal-Mart Stores is facing stronger headwinds than investors thought. The mega-retailer’s shares fell 10 percent on Wednesday, wiping out more than $20 billion of market value, after it warned higher pay and technology spending would hit next year’s profit unexpectedly hard. Changing shopping habits – think online retailers like Amazon – and wage pressures are outpacing the $210 billion company’s ability to adapt.

Oct 14, 2015
via Breakingviews

Wal-Mart outpaced by mass-market trends

Photo

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

Wal-Mart Stores is facing stronger headwinds than investors thought. The mega-retailer’s shares fell 10 percent on Wednesday, wiping out more than $20 billion of market value, after it warned higher pay and technology spending would hit next year’s profit unexpectedly hard. Changing shopping habits – think online retailers like Amazon – and wage pressures are outpacing the $210 billion company’s ability to adapt.

Oct 13, 2015
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J&J buyback a sensible regimen for ailing stock

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

Johnson & Johnson’s new $10 billion stock buyback is a sensible regimen for its ailing shares. The $266 billion pills-to-Band-Aids group will use debt to finance the repurchase, adding to a healthy dividend. Chief Executive Alex Gorsky can credibly argue that currency swings and a full but slow drug pipeline make the stock undervalued. It’s a rare case when juicing the price is justified.

Oct 13, 2015
via Breakingviews

J&J buyback a sensible regimen for ailing stock

Photo

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

Johnson & Johnson’s new $10 billion stock buyback is a sensible regimen for its ailing shares. The $266 billion pills-to-Band-Aids group will use debt to finance the repurchase, adding to a healthy dividend. Chief Executive Alex Gorsky can credibly argue that currency swings and a full but slow drug pipeline make the stock undervalued. It’s a rare case when juicing the price is justified.

Oct 6, 2015
via Breakingviews

DuPont succumbs to activist in absentia

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

DuPont has succumbed to an activist investor in absentia. Ellen Kullman will retire as chairman and chief executive of the $45 billion chemical giant, just five months after fending off an attempt by Nelson Peltz to secure four board seats. A new profit warning and the appointment of an interim boss who is a restructuring guru suggest the transition at the top is an abrupt one – and that DuPont may have to give a breakup another hearing.

Oct 6, 2015
via Breakingviews

DuPont succumbs to activist in absentia

Photo

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

DuPont has succumbed to an activist investor in absentia. Ellen Kullman will retire as chairman and chief executive of the $45 billion chemical giant, just five months after fending off an attempt by Nelson Peltz to secure four board seats. A new profit warning and the appointment of an interim boss who is a restructuring guru suggest the transition at the top is an abrupt one – and that DuPont may have to give a breakup another hearing.

Sep 2, 2015
via Breakingviews

Why oil investors are so behind the curve

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

Oil investors are behind the curve. Many assume that the cost of pulling oil out of the ground is relatively static – or at least changes slowly. Reality is slipperier. Rethinking the way the “cost curve” works may help explain recent gyrations in oil and other commodity markets.

Sep 2, 2015
via Breakingviews

Why oil investors are so behind the curve

Photo

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

Oil investors are behind the curve. Many assume that the cost of pulling oil out of the ground is relatively static – or at least changes slowly. Reality is slipperier. Rethinking the way the “cost curve” works may help explain recent gyrations in oil and other commodity markets.

    • About Kevin

      "Kevin Allison is global resources columnist at Reuters Breakingviews. Based in Chicago, he writes about oil, gas, mining, metals and the scramble for scarce resources. Prior to joining Breakingviews in December 2011, he worked at an investment bank. From 2003-2009 Kevin was a reporter at the Financial Times. He also wrote for the Lex column. Kevin holds degrees from Harvard University and the University of Missouri-Columbia. Follow Kevin on Twitter: @kevinallison"
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