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 share of rich-nation GDP going to labour has fallen, and depressed the “natural” interest rate that maximizes employment at steady inflation. But if central banks peg rates at the new level, cheap money foments financial instability. It’s a problem only governments can solve.
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.
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.
U.S. authorities are letting Windstream call its telecom cables real estate, qualifying them for tax breaks. And a partnership will shield Hess assets from the IRS. Politicians, though, are indignant over firms that move overseas – even when home-grown tax loopholes are costlier.