India is still unravelling 1 Oct 2012 Nine months after Breakingviews published a three-part series on the country, India’s economy has fallen further behind. Despite the wave of recent policies unveiled by Prime Minister Manmohan Singh, the case for economic reform - and a political realignment - remains as strong as ever.
Alpha stakes claim to be least-bad Greek bank 1 Oct 2012 The Athens-based lender is close to acquiring Emporiki, Credit Agricole’s Greek unit. The terms suggest Alpha will add market share muscle and gain synergies for minimal outlay. But investors are likely to fight shy until they know how Greek banks will be recapitalised.
Pandora’s income stream on congressional playlist 1 Oct 2012 The online radio company is shackled by music royalties that lock up about half its revenue. Newly proposed U.S. legislation would cut those costs to as low as the 8 pct paid by rival Sirius XM. A Breakingviews calculator shows just how much value that would release for Pandora.
Spain adds bank stress tests to saga of missteps 1 Oct 2012 Madrid will use less than two-thirds of its allotted 100 bln euro bailout to recapitalise its troubled lenders. But the government’s assumptions are on the rosy side, when they should have been conservative. The piecemeal approach to dealing with the crisis has struck again.
Hugo Dixon: Euro crisis is race against time 1 Oct 2012 Can peripheral economies reform before the people buckle under the pressure of austerity and pull the rug from their politicians? After months of optimism, bond investors got a touch of jitters last week. While the zone can probably pull it off, the risks have not vanished.
Xstrata reaches tidy compromise on messy deal 1 Oct 2012 The miner is right to back Glencore’s latest offer. It is getting a better premium from the commodity trader, plus board domination. Retentions for top staff make sense with Glencore’s Ivan Glasenberg running the show. The tie-up faces challenges, but shareholders should say yes.
EADS/BAE merger risks hitting political wall 1 Oct 2012 Lagardere, the media group owning 7.5 pct of EADS, adds to the uncertainty of the aerospace and defence merger by deeming it “unsatisfactory”. But the real obstacles are political. France and Germany must convince the UK, the three in turn have to win over the U.S. No small feat.
Vietnam is a bad example to newly emerging markets 1 Oct 2012 The Southeast Asian nation has gone from budding Asian tiger to near-basket case. The global economic slowdown and local corruption are both to blame. Vietnam needs to reboot its banks and foreign investment plans if it’s to offer any positive lessons for the likes of Myanmar.
Center of gravitas shifts at the New York Times 1 Oct 2012 One of the 20th century’s most influential publishers, Arthur Ochs Sulzberger, died over the weekend. He built the New York Times into a media empire that his son has had to dismantle. His gravitas will be missed as Arthur Jr. struggles to keep the paper a family affair.