BREAKINGVIEWS
Global sell-off could echo summer of 2011
Markets fear a chaotic Greek euro exit. Unless Europe helps Athens more, the sell-off is likely to deepen. Weak global growth doesn’t help. Oil and stocks could return to last year’s lows. As then, the dollar and safe bonds are the sanctuary - but this time, gold is vulnerable.
GE Capital cash cow reincarnated as goat
General Electric is finally milking its finance unit after stopping dividends in 2009. But GE Capital is slimmer now and, special dividends aside, will also be passing on less of its earnings than in the past. It’s still good, just not as rewarding for its parent as it once was.
Emerging markets hit by double troubles
A loss of investor confidence amid European woes has hit emerging market stocks. The asset class was already exposed to concerns about China slowing and resource nationalism. Emerging markets may be historically cheap. But investors’ overweight stance is apt to be reassessed.
Tempting mining valuations aren't hard to resist
The big miners were flirting with decade-low valuations even before the sector took an outsize hit in the recent sell-off. But that won’t necessarily lure bargain hunters. With margins already fat, Chinese demand weakening and costs rising, there’s no compelling equity story.
Asia's bonds look shinier as Europe and China slump
The region’s robust finances have made its sovereign debt a safe haven as bigger economies stall. An indiscriminate sell-off will affect everyone, but Indonesia, Japan and the Philippines all have qualities that should leave them less hard hit.
Exxon attacks straw man to defend CEO's pay
The oil giant is trying to calm shareholder anger over Rex Tillerson’s $35 mln bonanza before the say-on-pay vote at its AGM. Exxon argues that its long-term goals obviate the need for annual targets. But that just sounds like an excuse for C-suite largesse.
Law site’s IPO evokes a future beyond dying firms
It’s coincidence that LegalZoom’s $120 mln float is coming as Dewey & LeBoeuf evaporates. But the rise of the U.S. online legal document site is a warning to old-line lawyers. There’s plenty of work for savvy legal eagles, but those who aren’t lean and innovative could perish.
Greek banks' twin crutches are rickety
With deposit flight accelerating post the election fiasco, the country’s banks are kept afloat by the promise of a recapitalisation from bailout funds and further emergency liquidity assistance. But both crutches would be kicked away if Greece pulls out of its bailout programme.
China discovers the downside of a freer yuan
Chinese exporters seem to be responding to the offshore yuan market’s prediction of a weaker domestic currency. They’re holding onto more of their foreign receipts, rather than trading them for yuan deposits. The result: a squeeze on the banks and a headache for the government.
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India has chance to get a good finance minister
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Goldman extracts pound of flesh from Chesapeake
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Brazilian meddling threatens shareholders, again
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Greece takes easy way out with bolshy bondholders
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Italy protests too much over bank downgrades
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Avon punishes its own investors with its dawdling
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Chongqing won't be allowed to fail with Bo
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Spain's taxpayers main losers from Bankia bailout
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JPMorgan shareholders give Dimon slap on wrist
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Oracle suit gives Google a chance not to be evil
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Facebook winning Keynesian beauty contest
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Hollande-Merkel agenda is more Greece than growth
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The pound's climb may send the UK down
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Germany gives lesson in "free lunch" economics
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China has strongest hand in Philippine stand-off
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Chesapeake's evasive tactics compound crisis
