BREAKINGVIEWS

Facebook owners ignore Russian affair at own peril

22 September 2017

The $500 bln social network's alleged role in election meddling has legislators flapping, regulators gearing up and even roiled Mark Zuckerberg from paternity leave. Yet Facebook's valuation, at 27 times forward earnings, remains robust. There's a risky disconnect at work here.

Theresa May embraces “extend and pretend” Brexit

22 September 2017

Fifteen months after Britain voted to leave the European Union, the prime minister still has no coherent idea how to deliver it. Her proposal to keep things as they are until 2021 lowers the risk of a chaotic Brexit. If accepted, the temptation will be to delay further.

Growth shows up just in time for Argentina’s Macri

22 September 2017

The pro-business leader is counting on economic recovery to salve the pain of austerity as he undoes the spendthrift policies of populist predecessor Cristina Fernandez. Strong second-quarter growth is likely to help him stymie her aspirations of a comeback in mid-term elections.

Uber may be low on fuel for London fight

22 September 2017

The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.

Groundhog Day returns for U.S. wireless mergers

22 September 2017

Once again, the fragrance of cost savings worth $30 bln to shareholders has brought T-Mobile US and Sprint into a mating dance. Regulatory opposition and price disagreements sank past efforts. Though Sprint's Masayoshi Son is now a Trump BFF, the chances of consummation are low.

FDIC is last defense against Dodd-Frank rollbacks

22 September 2017

Wall Street bankers are counting down the days for the term of Chair Martin Gruenberg, an Obama administration holdover, to end in November. Trump has yet to tee up a successor, however. The longer the Volcker Rule and living wills stay as is, the harder it may be to undo them.

Nestlé’s L’Oréal stake is ready for a makeover

22 September 2017

The head of French cosmetic group’s founding family, Liliane Bettencourt, has died, reviving the debate about the Nescafé owner’s 23 pct stake. The best solution is to offload it. The challenge for Nestlé boss Ulf Mark Schneider is how to distribute 24 billion euros of value.

Russia’s state banks profit from financial turmoil

22 September 2017

The rescue of two private lenders has raised fears about the country’s banking sector. Savers have flocked to state-owned Sberbank and VTB, which have seen deposits swell by 1.2 pct and 18 pct, respectively this year. The tumult could leave the pair with better lending margins.

ZhongAn’s hit fintech IPO pushes lots of buttons

22 September 2017

The online insurer’s $1.5 bln Hong Kong listing turned into a blowout deal. No wonder: this is an unusual growth stock, with powerful backers and a story that should in time lure mainland investors too. Now the Chinese outfit just has to live up to its lofty valuation.

Diplomatic fog blinds China and U.S. over N. Korea

22 September 2017

Economic curbs are squeezing North Korea but the volley of test missiles hasn't slowed. Trump and Xi have misread the situation, and each other. Kim Jong Un is unimpressed by half-hearted sanctions; they strengthen him domestically. Time to price in the risk of real violence.

Chinese online retailer sits in lap of IPO luxury

21 September 2017

Secoo has carved out a nice niche, selling upscale brands such as Tod's and Versace. Its customer base is small, though, and the firm is burning cash. Even so, impressive order sizes and a clean image make it a tempting target for counterfeit-fighting Alibaba and mass-market JD.

Misbehaving CEOs can get off far too easily

21 September 2017

That's a lesson to draw from the case of KB Home boss Jeffrey Mezger, whose crass rant with neighbor Kathy Griffin went viral. Cutting his bonus might hurt if he received one in recent years. A more fitting penalty would be to axe his haul of stock awards worth some $2.4 mln.

Bloated U.S. healthcare spending has silver lining

21 September 2017

The first drug that works by silencing targeted genes by Alnylam is heading for FDA approval. It’s hot on the heels of another that treats cancer by using modified immune cells. New therapies are proliferating, thanks in part to America’s unsustainably large healthcare budget.