BREAKINGVIEWS

Trump adds new impetus to old short-termism debate

17 August 2018

The U.S. president wants the SEC to examine letting public companies report earnings every six months, rather than quarterly. Plenty of others, like BlackRock’s Larry Fink, had already slammed the practice. Trump’s tweeted directive should prompt some useful independent analysis.

Brazil’s voters want firebrands, need the opposite

17 August 2018

Latin America’s biggest economy could use some competent fiscal stewardship. Geraldo Alckmin, a onetime anesthesiologist running in October’s presidential election, fits the bill. Many Brazilians, though, would prefer riskier choices: jailed leftist Lula, or a Trumpian demagogue.

Free press needs paywalls more than editorials

17 August 2018

Over 350 U.S. newspapers published articles on Thursday decrying President Trump’s attacks on the media, drawing a predictable retort from the White House. A coordinated effort by the news industry to explain why people should pay for their product might be more effective.

Capital retreat turns light on Turkey lookalikes

17 August 2018

Other emerging economies also have lots of foreign currency debt or inadequate FX reserves. Some, such as South Africa and Argentina, are already hurting. Breakingviews ranks the countries that look the most vulnerable as flows to riskier markets go into reverse.

Unions the first of many fights for Air France CEO

17 August 2018

As the airline’s first foreign boss, Ben Smith will face labour strife that ousted his predecessor and has cost 335 million euros. But the former Air Canada executive must also tackle the weak governance, competition and soaring costs that threaten the carrier’s survival.

Rio’s Canadian opportunism amplifies cash quandary

17 August 2018

The $80 bln miner wants to list its 59 pct stake in Iron Ore Company of Canada, Reuters says. The timing suggests an eye on amenable markets for the operation's premium product, as China goes green. Success will benefit Rio’s cash pile, but only makes the growth debate louder.

China’s startups can reinvent fewer wheels

17 August 2018

Beijing-based Redcore admits its "100-percent" homegrown browser has a Google base. Its programmers are the latest to dress up open-source software as Chinese, seeking state support. A clumsy localisation strategy does little for security, and distracts from real innovation.

Cautious miners leave room for new swashbucklers

17 August 2018

Heavyweights like BHP have retreated from promising projects in tough spots. Even daring Glencore is fretting about Congo. The result is a long list of untapped resources and few buyers outside China. An intrepid fresh player could step in - if it can access private capital.

Activist board hack is a boon for Symantec

16 August 2018

Hedge fund Starboard is seeking five seats at the $12 bln cybersecurity outfit after taking a 5.8 pct interest. Accounting troubles and upheaval in its enterprise software business have slashed the firm’s value by a third this year. Fresh oversight could help fix the bugs.

Revamped U.S. deal reviews are skid risk for Tesla

16 August 2018

Saudi help in a buyout could spur national-security scrutiny under new powers. Tesla’s tech might be deemed critical, while D.C. also worries about China's ambitions. Rules and pilot programs are works in progress, but it's another uncertainty for CEO Elon Musk’s convoluted plans.

Walmart sharpens as Amazon efficiency edge dulls

16 August 2018

The $270 bln retailer increased quarterly sales 4 pct. That pales next to its Seattle rival’s latest 39 pct rise. But Walmart’s workers are as productive as ever while Amazon is employing many more, and getting less in return, as it expands stores, warehouses and distribution.

Italy bridge fallout will shape infrastructure fix

16 August 2018

Atlantia shares have fallen 30 pct on fears the government may cancel its contracts after a fatal bridge collapse. The tragedy reinforces the case for more investment. The government’s treatment of the toll-road operator will determine whether investors are willing to play along.

Britain’s Disney M&A ruling is a bit Mickey Mouse

16 August 2018

The Takeover Panel, generally a sound custodian of UK bid rules, is keeping the Magic Kingdom’s minimum buyout price for Sky at 14 pounds per share. Nudging it higher, in line with Disney’s Fox bid, would have set a better precedent for similar deals in the future.