BREAKINGVIEWS
U.S. private sector emerges from government shadow
Headline annualized U.S. GDP growth of 2.8 pct in the fourth quarter looks more anemic when inventory growth is netted out. But private sector output expanded at a more robust 4.5 pct. The government retreated in 2011 as a whole, but private enterprise is regaining strength.
Ford's profit fender-bender not as bad as it looks
Falling a fifth short of Wall Street’s Q4 estimates dinged the automaker’s shares. But Ford’s balance sheet and product line-up are strong. And there are more cost cuts coming. Even allowing for the challenges its overseas operations face, Ford’s stock should be shiny again soon.
How ECB could help solve Greek deadlock - for now
The European Central Bank is under pressure to join private creditors in taking a loss on its Greek bonds. But if the ECB merely agreed not to make a profit, Athens could save up to 15 bln euros. That would clear the way for Greece’s next bailout – and buy politicians some time.
Hollande's plan points France in wrong direction
The socialist presidential candidate does endorse worthy fiscal targets, but his plan to meet them is long on tax hikes and short on spending cuts. His policies would not tackle France’s biggest economic problem, a lack of competitiveness. They might make it worse.
Uninvited guest, Mr 99 Percent, crashes Davos
The rich and the powerful at the World Economic Forum are haunted by the shadow of the unemployed and disenfranchised. The specter is in the panels, hallway conversations and political speeches. What’s less clear is whether the gathered plutocrats can deal with income inequality.
Year's biggest M&A deal shines light on spinoffs
Eastman Chemical, once part of just-bankrupt Kodak, is spending $4.7 bln on Solutia, a rival that went bust in 2003 after splitting from Monsanto. With spinoffs so popular these days, the deal is a timely reminder for investors that not all carve-up progeny are created equal.
Chevron still safest oil bet despite profit miss
Knocking $6 bln off Chevron’s market value looks like an over-reaction. The hit makes the second-largest U.S. oil company even cheaper compared to rivals. The recent weakness in refining will pass, and the firm has strong finances and the sector’s lowest exposure to cheap gas.
Japan's trade deficit is not merely unlucky
Japan’s 2011 catalogue of disasters drove up fuel imports and put trade in deficit for the first time in 31 years. But the deficit still matters. With Europe weakening and the yen strong, Japan can’t afford to rely on exports. The debt-ridden economy must do more to help itself.
Private equity energy herd has ample room to graze
Successes like KKR’s five-bagger on East Resources have sped up the sheep-like migration to the sector. That will make such returns hard to replicate. And it’s not obvious how the buyout playbook applies. But hot shale and distressed gas should keep energy pastures green.
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AOL pinned down by girly startup on a shoestring
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Britain is ducking the key question on high pay
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Dodgy M&A lawsuits are putting useful ones at risk
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Ireland's bond swap shows how self help can work
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Iraq should cut down telco listing ambitions
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Einhorn case strikes mild blow against cronyism
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Obama offers more anti-fraud bark with little bite
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Weaker earnings are a burden equities can handle
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EU's latest bank recap may help 2008 victims
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Iran's first move on oil ban would backfire
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Who will pay for the euro firewall?
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Greenhill proves stronger than 2011 knocks suggest
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Fed doubles risk of being whipsawed by market
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Banks gain unlikely allies in Volcker rule battle
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Even unity can't solve U.S. foreclosure problem
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Roche's resolve on Illumina will be tested hard
