HP crashes another tech barrier with Palm swoop 28 Apr 2010 The oncefragmented tech landscape is unifying as category leaders snaffle up small fry and invade the turf of other former monoliths. As HP's $1.2 bln purchase of Palm shows, mobility is the newest front line.
Europe faces possible IPO glut 28 Apr 2010 Spanish travel group Amadeus has priced its float confidently. The resilience of stock markets in spite of the Greek crisis is luring back issuers who retreated after several big deals got pulled in February. The pipeline is swelling. Investors can afford to remain discerning.
Cape Cod wind farm is a losing battle for greens 28 Apr 2010 Victory in a 9year battle to win federal approval for a wind farm off the Massachusetts coast is not the end of the story. Wealthy denizens of the coast may still scupper the project. Given the poor economics of offshore wind, greens should choose more promising territory.
SEC should leave side-pocket debate to the market 28 Apr 2010 Cashstarved investors groused in the crisis at being locked into funds through gates or sidepockets sometimes with justification, sometimes not. Either way, fund clients now know the score. If they don't like what's offered by a manager, they can vote with their wallets.
U.S. oil shale ripe for interest from majors 28 Apr 2010 Multinational oil groups have paid up for late entry to the U.S. shale gas party. Yet oil shale deposits, though less enormous, could deliver quicker profits. The danger for the majors once again is waiting so long that the alreadyoperating independents can name their price.
Markets suddenly get fixated on Greek problems 28 Apr 2010 Bad news has been flowing freely from Athens for months, but it took a combination of German recalcitrance and a sharp Greek rating downgrade to shock investors into a flight from risk. But fear breeds contagion, threatening to turn manageable real problems into a global crisis.
Candover and out for private equity kings 28 Apr 2010 Only last month, Candover was talking about a new private equity business model. Now it's seeking a new home in a Canadian pension fund. Candover's structure made the firm especially vulnerable. But its eclipse shows that many of the claims made for private equity were bogus.
Goldman faces tough choice over ICBC stake 28 Apr 2010 The Wall Street firm's agreement to keep its 4 pct stake in China's biggest lender expires today. It must be tempting to sell ahead of an expected flood of bank share issues. But it may not look good for Goldman to cash in when its financial clients are looking to sell equity.
Charlie Brown may not have matured just yet 27 Apr 2010 The licensing rights to the beloved comicstrip kids created by Charles Schulz have been sold for $175 million. The valuation suggests the buyers including Schulz heirs think that even after 60 years Charlie Brown and Snoopy still have plenty of spring left in their steps.
Putin puts geopolitics before economics 27 Apr 2010 A proposed nuclear partnership with Kiev is the latest example of Russia trading cash for influence. An expensive new gas pipeline will tighten the country's energy grip on Europe. Even if the politics are sound, Russia may not be able to afford all of these power plays.
Goldman performance shows one bubble yet to pop 27 Apr 2010 That s the one Wall Street and those close to it inhabit. Sure, current and former executives who testified in Congress were lawyered up, and the senators did a lot of grandstanding. But it s clear Goldman is still out of touch with the world beyond its immediate orbit.
Derivatives reform needs to look forward, not back 27 Apr 2010 Many companies want to be exempt from new U.S. rules particularly requirements to post hard cash against swaps. Warren Buffett s wish that existing deals should be spared is selfinterested, but makes sense. But there shouldn t be too many free passes in the future.
Big oil spill may not just be BP’s problem 27 Apr 2010 The UK oil and gas major has responded aggressively to a fatal explosion in the Gulf of Mexico. BP is well aware of reputational risk, having spent five years rebuilding its own. Investors should be worried too, by the costs and the potential backlash on deep sea exploration.
Goldman emails show rise of technology and traders 27 Apr 2010 The Wall Street bank s use of voicemail, rather than email, helped it dodge earlier scandals. Embarrassing emails released by Senate investigators show how the Blackberry culture may have changed behaviour. But they also underscore the power shift from Goldman bankers to traders.
It’s put-up time for financial reform critics 27 Apr 2010 Republicans keep demanding a better plan and have blocked U.S. Senate debate on the Democratic overhaul. But the GOP should move beyond political maneuvering and put forward a proposal one that fixes Fannie and Freddie and gives regulators less wiggle room on bank closures.
Pru revolt is premature but welcome 27 Apr 2010 The UK insurer's biggest investor would prefer a breakup to a $36 bln bid for AIA and its 12 percent stake may cause real problems. Until Pru releases its prospectus it is too soon to damn the deal. But it is good to see large shareholders behave like responsible owners.
U.S. budget fixes require heavy political lifting 27 Apr 2010 President Obama s deficitreducing commission is now officially at work. A target for taxes and cuts might be some $650 billion a year. A VAT looks likely, but that alone won t do it. Breakingviews suggests a few other ideas. They are all needed but would mostly be unpopular.
Capital concerns taint Deutsche’s bumper quarter 27 Apr 2010 The German bank's strong Q1 results make plans to double pretax profit by 2011 look more credible. But its core Tier 1 capital ratio fell as it absorbed acquisitions. With tougher regulations on the way, Deutsche may find it harder to reduce its reliance on investment banking.
Greek restructuring unlikely for now as EU fights 27 Apr 2010 Investors thought Greece was fine for too long. Now they see imminent default. But EU support will probably get Greece through till 2011, while the IMF presses for fiscal revolution. After that, a debt restructuring with losses for creditors may be harder to avoid.
Ford’s profit backfire reignites dilution fears 27 Apr 2010 Good news, like Q1 s $2.1 bln of earnings, sends the carmaker s shares down these days. A small cash use surprise and gentle caution on headwinds didn t help. But shareholders are still nervous about a coming flood of new stock to reduce debt. Ford should get it done already.
UK should resist temptation to dump bank stakes 27 Apr 2010 Another positive update from Lloyds has sent its shares further above the price at which the government bought equity. RBS is also on a roll. But a postelection stake sale could deliver only a partial exit and would be politically risky while banking regulation is still in flux.
Markets don’t need a measure of divine guidance 27 Apr 2010 Yet another new index, the Stoxx Europe Christian, says more about investors' obsession with trying to track everything than about any religious revival. The more indices there are, the more meaningless they become, allowing every investor to find a benchmark he's outperformed.
Bold investors make fat returns from Dubai crisis 26 Apr 2010 Funds who bought the bonds of Dubai property developer Nakheel at deep discounts late last year have had their courage rewarded. The bonds have jumped 70 percent on hopes that Dubai will ensure they pay out at maturity. That bet looks increasingly safe.
Four questions Pru shareholders need answering 26 Apr 2010 The UK life insurer's investors have been forgiving about its $35.5 billion tilt at AIG's Asian business. But much is yet to be explained about the deal. When Prudential releases its prospectus on May 5, here are some questions that shareholders should insist are answered.
L’Occitane’s China makeover doesn’t quite convince 26 Apr 2010 A $700 million listing in Hong Kong sounds smart for the cosmetics maker, which now has more shops in Greater China than France. But the Chinastyle valuation looks a bit rich. L'Occitane's planned growth spurt looks risky, and its Chinese stores may be slow to generate returns.
Greek contagion biggest worry for Europe’s banks 26 Apr 2010 French and German banks hold almost half of Greece's sovereign debt. A default would be painful but manageable, assuming a haircut of around 30 percent. The bigger concern for all European banks is if the contagion spreads to other Eurozone countries particularly Spain.
Neither Goldman nor Senate makes killer case 26 Apr 2010 The Senate released embarrassinglooking emails from the Wall Street firm but no concrete evidence of wrongdoing or excessive profits. Meanwhile, Goldman's defence that it was merely hedging risk is undermined by emails showing it was endlessly trying to make money.
Merkel’s heat on Greece makes euro zone sweat 26 Apr 2010 Spreads on Greek debt are soaring again, but the EU rescue isn't coming. German chancellor Angela Merkel has reasons to delay, including a local election. But she also wants Greece and others to know that reform comes before aid. The heat will intensify, and the euro may suffer.
Goldman controversy deserves right questions 26 Apr 2010 The danger is that Tuesday s Senate hearing, involving CEO Lloyd Blankfein and six others, is consumed with grandstanding and headlinegrabbing hectoring. For past missteps to be avoided, more thoughtful probing is called for. Breakingviews suggests some icebreaker questions.
Hertz puts the thrifty in Dollar Thrifty purchase 26 Apr 2010 The $1.3 bln acquisition of its smaller U.S. car rental rival comes with just a 6 pct premium. Moreover, Hertz is using $200 mln of Dollar Thrifty s own cash to finance the deal, which nearly pays for itself with cost savings. Small wonder Hertz holders like what they see.