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Tuesday, 01 September 2015

Americas

40 percent rule

Silicon Valley rule of thumb points right way

31 August 2015

In a land that fetishizes revenue growth over profitability, there’s a new sanity check for software firms to see if the two rates add up to at least 40 pct. A Breakingviews analysis suggests it can be a useful guideline. Investors should just be wary of extrapolating too much.

Federal Reserve Vice Chairman Stanley Fischer speaks in Jackson Hole, Wyoming August 28, 2015.

Fed dilemma is mostly good news

31 August 2015

Vice Chair Stanley Fischer reckons inflation is only temporarily subdued. Along with the BoE’s Mark Carney, he also downplayed China’s deceleration. The Fed’s doves, meanwhile, remain wary of raising interest rates. The split is evidence the U.S. economy is finally mending.

A bank clerk counts U.S. dollar banknotes on bundles of 100 Chinese yuan banknotes at a branch of a bank in Huaibei, Anhui province April 26, 2012. REUTERS/Stringer

China capital flight inspires enlightened scam

31 August 2015

U.S. investigators say a former Buddhist monk conned $125 mln from 250 investors seeking U.S. visas. China’s sputtering economy has fueled a booming market for immigration by investment. It won’t be the last time the country’s worried wealthy are relieved of their worldly goods.

Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York February 11, 2014.

Freeport-McMoRan leaves Carl Icahn lots of targets

28 August 2015

Big cuts in spending and staff sent the struggling miner’s stock soaring – just before the activist revealed an 8.5 pct stake. The pre-emptive strike won’t be enough to satisfy the feisty billionaire. High debt and low commodity prices suggest he has asset sales in his crosshairs.

BNY Mellon headquarters

BNY Mellon fund-pricing glitch exposes dangers

31 August 2015

The U.S. bank’s SunGard-provided system for valuing mutual fund assets is working again a week after going down. This time, damage was minimal. But the episode reveals potential risks from bugs in software to over-reliance on third-party vendors and scrimping on costs.

U.S. Republican presidential candidate Donald Trump hugs a U.S. flag as he takes the stage for a campaign town hall meeting in Derry, New Hampshire August 19, 2015.

White House hopefuls all agree: China is the worst

28 August 2015

Move over Wall Street. U.S. presidential candidates have a new bipartisan punching bag. From Tea Party favorite Donald Trump to socialist sweetheart Bernie Sanders, the entire field has reasons - ranging from crushing stocks to hacking to trade - for dissing Asia’s superpower.

Edward Chancellor

Review: Ben Bernanke and a global monetary plague

28 August 2015

Ever since the collapse of Lehman Brothers, the Federal Reserve has engaged in financial experimentation that has delivered the weakest rebound on record while spreading deleterious effects around the globe that author Brendan Brown, in a forthcoming book, likens to a plague.

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