BREAKINGVIEWS

Walmart adds solar burns to Tesla’s challenges

21 August 2019

The U.S. retailing giant is suing Elon Musk’s $40 bln electric-car maker for negligence after its solar panels allegedly sparked fires at stores, further denting Tesla’s quality-control image. Walmart’s move also puts Musk’s odd 2016 acquisition of SolarCity back in the spotlight.

Banks win a little more rope to hang themselves

21 August 2019

The Volcker Rule stopping banks betting with their own money was worthy but flawed. That’s still the case after its latest rewrite, but it may at least be more usable. Eased rules imply Wall Street firms are no longer in the sin bin. It’s up to them to prove that’s justified.

Trailblazing German bond sale has hidden message

21 August 2019

The government of Europe’s biggest economy managed to sell 30-year debt at a negative yield for the first time. Expectations of imminent monetary easing created some demand. However, details of the auction reveal a shortage of investors buying into the fixed-income mania.

Greenland is not for sale, but the UK might be

21 August 2019

Donald Trump won’t be visiting Denmark, after it rejected his interest in its autonomous dependent territory. To quench his thirst for geo-M&A, the U.S. president could aim for the United Kingdom. The target is undeniably much larger, but it may soon be available at a low price.

Gold would shine brighter in thick of currency war

21 August 2019

Trade and geopolitical tensions have heightened demand for safe havens, but with policymakers trying to keep currencies down, the dollar, yen and Swiss franc offer only partial protection. The yellow metal is different. No one will push back if its price keeps rising.

Alibaba drives home costs of Hong Kong unrest

21 August 2019

The Chinese giant will delay a mooted $15 bln listing in the Asian hub after brewer AB InBev shelved its own. A trade war and protests are a poor backdrop for big offers. That will deter others and land a fresh blow to a city where business confidence is rapidly on the decline.

Meituan Dianping gets better at multitasking

21 August 2019

The $50 bln delivery-to-ride-hailing giant’s takeaway unit is expected to post its first profitable quarter on Friday, as it gets better at juggling multiple businesses. It has scaled down a costly bike sharing venture, while a push into groceries and maps plays to its strengths.

India could use a good economic crisis

21 August 2019

Car sales are down, unemployment is up and new investment proposals are at a 15-year low. There may be a silver lining: India has a record of bold reforms in times of stress, as when the country opened up in 1991. Prime Minister Narendra Modi has the mandate to repeat the trick.

Italian odd-couple trade is market’s better hope

20 August 2019

PM Giuseppe Conte’s resignation speech was a clear pitch to lead another coalition government including the center left PD and hapless 5-Star. That’s still a shaky combination, but with a stronger pro-EU tilt and more fiscal discipline than the partnership it would replace.

Tech will struggle to evade U.S. antitrust octopus

20 August 2019

Facebook and Apple may soon face state-level probes into their business practices, as well as two by federal agencies. America’s multi-tentacled approach to antitrust is a tangled mess, but a strangely efficient one. It may also favor a tougher end result.

Transatlantic pet care deal will need grooming

20 August 2019

Elanco is paying $7.4 billion in cash and shares to buy Bayer’s animal-health division. The deal may make more sense for the seller than the buyer. The Eli Lilly spinoff will have to ramp up sales and deliver on ambitious cost-cutting plans to make a success of its acquisition.

Smartphones may be as good as it gets for Xiaomi

20 August 2019

Revenue at the Chinese group's handset unit rose a tad despite shrinking demand for such devices. But a push into internet services has been disappointing: Boss Lei Jun is struggling to wring more money out of a growing user base. Xiaomi’s premium valuation looks too generous.

Buyout barons play good guy in German lighting M&A

20 August 2019

Bain and Carlyle’s $4 billion Osram bid may be trumped by chipmaker AMS. Trade unions, which sit on the target’s board, are more worried by the latter than the former. While Chairman Peter Bauer may hear out the Austrian suitor, its heavy debt load will be hard to ignore.