BREAKINGVIEWS

PBOC’s Zhou seeks lasting sway with debt warning

19 October 2017

The central bank governor is suddenly ramping up calls for reform and warning of a possible “Minsky moment.” With the 19th Party Congress in full swing, the soon-to-depart 69-year-old no doubt hopes to burnish his legacy, and ensure a like-minded successor fills his shoes.

Lyft’s new $1 bln of cash spells gains over Uber

19 October 2017

The ride-hailing app has secured new funding led by Alphabet and a nearly 50 pct valuation increase. Its larger rival is struggling to regain momentum and is close to a down-round investment from SoftBank. Uber has the scale, but Lyft’s less aggressive approach is paying off.

HP Enterprise shows breakups can fail to shine

19 October 2017

Activists often prod companies to hive off promising businesses from boring cash cows. HP’s split shows the distinction isn’t always clear. The “exciting” servers and networking offshoot is returning more capital as expansion stalls while growth stirs at the PC and printer outfit.

Taylor-led Fed would be dangerous in manifold ways

19 October 2017

In addition to the Stanford economist's dogmatic bent for a programmatic monetary policy, John Taylor backs bigger regulatory changes than others in the running to be the next U.S. central bank chief. His laissez-faire ideas about policing Wall Street are loaded with risk.

New U.S. approach can better rein in drone dangers

19 October 2017

The FAA will share oversight of the vehicles with state authorities under a promising test project. Conflicting federal and local rules have caused confusion, with courts adding to the uncertainty. Combining forces can help regulators contain risks in increasingly crowded skies.

Consumer goods makers poised for the big purge

19 October 2017

Nestlé, P&G and their peers are pumped far above their long-term valuations. Collectively, the biggest 10 would lose almost $350 bln of market value if history reasserted itself. A squadron of activists offer support, but Unilever’s earnings wobble hints at brittle share prices.

PayPal’s future rests on striking quadruple whammy

19 October 2017

The $80 bln payments firm is worth as much as Amex and has a higher multiple than Visa or MasterCard. Justifying that means renewing its deal with ex-owner eBay, nailing lending and expanding its popular Venmo app to merchants. For now, PayPal looks well-positioned to succeed.

Spare GE jet is symbolic target of Flannery sweep

19 October 2017

Scrapping a second plane that followed former boss Immelt around, just in case, is an easy sop for shareholders. The new CEO needs them on side as he mulls possible bigger changes at the $200 bln industrial giant, such as dropping long-held earnings targets or cutting dividends.

ICOs validate old-school “follow the money” mantra

19 October 2017

One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.

Blackstone’s mass gives it gravitational pull

19 October 2017

Steve Schwarzman’s investment shop boosted earnings by 23 pct in the latest quarter, driven by management fees on its new $18 bln private-equity fund. With managed assets approaching $400 bln and $92 bln of dry powder, the alternatives firm has powerful momentum.

Verizon stuck in neutral as rivals shift

19 October 2017

The U.S. telecoms carrier reported a rise in wireless subscribers. But cable rivals Comcast and Charter are also offering mobile services. AT&T is trying to become a media company, and Sprint and T-Mobile may yet merge. A heavy debt load hobbles Verizon’s ability to quickly change lanes.

Unilever struggle gives hope to predators

19 October 2017

The consumer giant that fended off Kraft Heinz earlier this year reported weak third-quarter sales. Growth in developed markets is slow and consumers are fickle. CEO Paul Polman is sprucing up brands, but the more pedestrian Unilever’s performance, the more vulnerable it becomes.

Publicis pick-up the exception to ad land gloom

19 October 2017

The French group reported higher revenue, defying rivals WPP and Havas which binned growth targets this summer. That’s cold comfort for advertising bulls. Publicis seems to be taking a bigger share of a still-challenged market. Past underperformance makes it a poor barometer.