If Apple becomes Microsoft, investors should cheer
(The authors are Reuters Breakingviews columnists. The opinions
expressed are their own.)
By Robert Cyran and Richard Beales
NEW YORK, Nov 19 (Reuters Breakingviews) – If Apple (AAPL.O: Quote, Profile, Research)
becomes Microsoft (MSFT.O: Quote, Profile, Research), investors should cheer. At least,
that is, for their wallets. Middle age for technology stocks can
hurt as shareholders looking for rapid growth lose interest and
value-oriented owners await stability. But Apple has already
made the transition – before its growth has slowed much. Even if
its next decade echoes Microsoft’s last, the company is worth
over $1 trillion.
Goldman grail gets holier – but less rewarding
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Goldman Sachs’ holy grail is becoming harder to reach – but less rewarding. The Wall Street firm named 70 new partners on Wednesday, the smallest biannual class since it went public in 1999. Fewer of the old guard are moving on and Goldman’s total headcount is shrinking. While a partnership is still a ticket to riches, lower profitability means it’s tougher to achieve and less of a bonanza.
Obama continuity is good for China-U.S. ties
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The United States and China couldn’t have more different political systems. But with Barack Obama re-elected on Tuesday as U.S. president and China’s new leaders taking over next week, there is reason to hope they can see eye to eye. If Obama builds on America’s recent prudent diplomacy, the two superpowers’ rivalry can be constructive.
Breakingviews e-book: The U.S. election
Edited by Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
America is divided. That at least is the message from the two parties in the run up to Nov. 6 U.S. presidential and congressional votes. With Barack Obama and Mitt Romney neck-and-neck in polls, our latest e-book examines how we got here, and the main fiscal and economic challenges facing the next American president.
Download the e-book
Wall Street, City pay still must fall by a third
(The authors are Reuters Breakingviews columnists. The opinions
expressed are their own.)
By Antony Currie and Richard Beales
NEW YORK, Oct 11 (Reuters Breakingviews) – James Gorman is
right that investment banking is overstaffed and underpaid, as
he told the Financial Times last week. But neither the Morgan
Stanley (MS.N: Quote, Profile, Research) boss nor his global peers have proven adept at
taking action. Last year, total wages at securities firms that
are members of the New York Stock Exchange and the average pay
per employee in New York increased even as industry profit fell,
according to a report this week from the state’s comptroller.
New U.S. stress test needed: higher interest rates
(The authors are Reuters Breakingviews columnists. The opinions
expressed are their own.)
By Agnes T. Crane and Richard Beales
NEW YORK, Oct 4 (Reuters Breakingviews) – “Don’t fight the
Fed,” the saying goes. The U.S. Federal Reserve is promising
ultra-low interest rates into 2015. Yet the buildup of
low-yielding debt on financial firms’ balance sheets means they
may suffer badly if rates jump. The central bank aside, prudent
bosses – and their watchdogs – need to ensure they are avoiding
fights with history, too.
Apple’s Maps snafu nothing new – just bigger
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Apple Chief Executive Tim Cook has apologized for leaving customers frustrated – and lost. The problem is a new mapping application, rife with both errors and omissions. Launch problems aren’t new. Steve Jobs flubbed pricing of the original iPhone, went too early with a flawed MobileMe cloud service, and had to deal with the iPhone 4’s imperfect antenna. But Apple’s increased size and rising competition make avoiding slip-ups increasingly important.
Leap off fiscal cliff is bad option, but not worst
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Leaping off the so-called fiscal cliff is a bad option for the United States. But it might not be the worst. If U.S. politicians can’t wrangle a deal first, January will bring tax increases and spending cuts. The economic shock could bring another recession. But it could also improve the political chances of a real fix.
James Gorman edges Vikram Pandit in JV showdown
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Richard Beales
NEW YORK, Sept 11 (Reuters Breakingviews) – Chalk one up for
James Gorman in the latest showdown of bank bosses. The Morgan
Stanley (MS.N: Quote, Profile, Research) chief executive and Vikram Pandit, his
counterpart at Citigroup (C.N: Quote, Profile, Research), were miles apart on the value of
Morgan Stanley Smith Barney, the joint venture wealth management
unit Gorman’s firm is gradually buying from Citi. The agreed
$13.5 billion price tag is closer to where Morgan Stanley pegged
it. More significantly, Gorman now knows what the whole deal
will cost.
Buyout bosses lose another layer of their mystique
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
U.S. Republican presidential hopeful Mitt Romney’s background at Bain Capital has directed a spotlight onto the unusually low tax rates paid by buyout firm executives. But a New York probe into a complex technique used by private equity firms to pay less tax on fee income may take more sheen off the industry. Even if legal, it’s yet more evidence of financial engineering.
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