BREAKINGVIEWS
Obama’s corporate tax plan is a good start
The president’s proposal to reduce the rate paid by companies to 28 pct and eliminate many loopholes gets the debate moving in the right direction. But there’s plenty of room to improve the plan, too. For one thing, it would make global competition tougher for domestic firms.
Christie imperils reformist mojo and state coffers
The governor’s budget paints a rosy picture of the Garden State, but overlooks thorny issues like underfunded pensions. A politician planning ahead for an election is no surprise, yet leaves Chris Christie putting New Jersey’s future - and a tough-talking reputation - at risk.
Shell pays up for a foothold in Mozambique gas
The oil giant has offered $1.6 bln for gas explorer Cove Energy – a 70 pct premium but loose change for Shell. The assets are attractive and Shell has the know-how to exploit them. If Asian gas prices stay high and exploration projects deliver, the toppy price could be worth it.
China data show slowdown that Asian markets ignore
Investors are using newly minted euros and yen to buy shares in Asian exporters. But Chinese manufacturing has been slowing for four months, with exports especially weak. Markets look vulnerable to bad news from Europe or the U.S. – or to surprises from Asian central banks.
GM tie-up could keep Peugeot family at the wheel
The French carmaker had to do something after burning through 1.5 bln euros of cash in six months. It needs greater scale to take on Volkswagen. Fiat was a potential partner. But a non-equity tie-up with GM is a way to let the Peugeot family to keep control.
AT&T board lets CEO off hook for bad call
Randall Stephenson’s total pay fell to $22 mln last year from $27 mln in 2010. That’s a light slap given the $4 bln break fee for the badly botched bid for T-Mobile USA. Investors can show their displeasure with directors for failing to hold the boss accountable – and should.
BP's Deepwater catharsis finally on the horizon
A minority partner’s deal with the U.S. government is a promising sign ahead of a critical civil trial opening on Feb. 27. Extreme financial penalties look priced into BP stock whatever the verdict. So too is a big management discount. There’s lots of upside if BP isn’t thwacked, and its board restores credibility.
Alibaba $2.5 bln buyout looks opportunistic
The 46 pct premium founder Jack Ma has offered to take the Chinese e-commerce company private is decent, but the shares are far below former highs. Minority shareholders have few options, but Ma’s wily dealmaking may haunt him if he returns to float his crown jewel, Taobao.
Happy stock highs belie bonds teetering on edge
With the Dow Jones industrial average crossing the 13,000 level for the first time since before the crisis and Britain’s FTSE 100 index headed toward 6,000, equity investors are smiling. Many may be wondering if the run can be sustained. But debt buyers may face the real danger.
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Deloitte caught in Diamond Foods’ glare
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Greek rescuers rise haltingly to historic occasion
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Steve Wynn puts favorable house rules to test
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Apple needs more than a good lawyer in China
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China's Ten Kingdoms era has lesson for euro zone
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Iraq offers investors ultra-high risk-reward bet
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Lloyds' bonus malus is test for clawbacks
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Why 100 pct FDI could save India's Kingfisher
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Frannie boss shoots more good ideas into the wind
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IMF strategically withdraws from Greek campaign
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Greek deal makes best of a bad job
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Olympus investors shouldn't bleat about its banks
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Higher oil price should burn itself out
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Eircom's top lenders will soon call the shots
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China needs bonds more than easier bank lending
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UPS love letter validates TNT's earlier break-up
