India’s rejection of a global trade pact throws fresh sand at an already creaking wheel. International commerce is no longer seen as a byword for growth, which puts the promised trillion-dollar gains from removing barriers in doubt. The prospect for ambitious accords is dimming.
Elon Musk’s $28 bln electric car maker beat estimates and outlined impressive production targets of 100,000 vehicles by 2016. For all its success, and investor fetishization of Silicon Valley disruption, Tesla will only ever earn autoland returns. That suggests it’s worth $9 bln.
A stake in the Chinese e-commerce group makes up over half the U.S. internet firm’s value, a Breakingviews calculator shows. When investors can buy Alibaba shares directly - potentially next month - Yahoo chief Marissa Mayer will find herself under a narrower, brighter spotlight.
A new U.S. government study suggests giant banks have lost the big funding-cost advantage they had over smaller ones in the crisis years. That suggests some success in making bailouts a thing of the past. The problem, though, is whether it sticks next time markets turn nasty.
The oil giant beat estimates. But a 6 pct output drop, the worst in years, wiped up to $9 bln off its market value. Exxon, though, has several projects coming online that should reverse the decline. With capital spending on these all but over, cash flow’s healthy again, too.
Foreign funds sank $5 bln into venture capital the first half of 2014 – three times what local funds raised. That the country’s next Alibaba will probably be funded by Silicon Valley investors may jar with national pride and official rules. But China’s economy is the undeniable beneficiary.
The $16 bln French telco has offered $15 bln for 57 pct of the No. 4 U.S. mobile operator. That’s bold, with financing not immediately to hand and the claimed premium reliant on improbable synergies. But the intervention may intensify antitrust objections to Sprint’s rival offer.
In a pre-August deluge, at least 50 companies worth a combined $2 trln reported results on Thursday. Good news trumped bad by a factor of two to one. Some of the strength is derived far from home, but it’s a fresh opportunity for global investors to revisit Plc, AG, NV and SA.
Volkswagen is embarking on a 5 bln euro efficiency scheme. Tackling bloated costs and poor margins at the core brand is long overdue. But the group is shying away from addressing the real causes of the malaise. It is too complex, overly centralised, and badly governed.