Efficiency revolution would put shale to shame 4 Jun 2013 Even without fancy new technology, better energy efficiency could save Americans 23 million barrels of oil per day by 2050, twice Saudi Arabia’s output. But investments are inadequate, even though they should be profitable today. Blame bad information and skewed incentives.
Catch-and-release technique gets Pfizer off hook 3 Jun 2013 The U.S. pharma giant paid $1.3 bln for Esperion in 2004, but shut it down when a promising drug didn’t work out. Now the firm is going public anew. Same name, founder and a cholesterol treatment it discovered – and with Pfizer as a backer. It’s a novel form of schmuck insurance.
Telecoms to ease lifting next billion from poverty 3 Jun 2013 The Millennium Development Goal of halving extreme poverty by 2015 was achieved early. The problem is now largely African, but even there cellphones are connecting people and boosting growth. That brings cutting the number living in poverty by another 1 bln by 2030 within range.
Elon Musk has to sell 540,000 Teslas a year 3 Jun 2013 That’s what a Breakingviews calculator shows may be needed for the electric automaker to be worth $43 bln by 2022, a target in the CEO’s 10-year incentive plan. That and other goals could bag him up to $1.8 bln. The hurdles are high. If Musk does it, he’ll deserve every penny.
Turkey can’t afford to spurn democracy 3 Jun 2013 Prime Minister Erdogan’s harsh response to popular demonstrations reminds investors that Turkey’s growth story has some dark spots. The country’s success depends on foreign capital and a vibrant middle class. A retreat into authoritarianism shouldn’t even be an option.
GM Building’s $3.4 bln price tag is sign of times 3 Jun 2013 A 40 pct stake in the Apple Store-tenanted Manhattan landmark has set a new record, with a value a fifth above a 2008 transaction. A Chinese property billionaire and Brazilian bankers are the buyers. But the building has a cursed history – not just for the carmaker that built it.
Severn Trent buyout treads water 3 Jun 2013 The UK utility rejected a raised proposal with a 5.2 bln stg equity value. Borealis’ bid consortium sounds upset. But the limited market reaction, and the measured tone from Severn, suggests the bidders are not too far off a recommendable offer.
Spain’s PMI rebound offers glimmer of hope 3 Jun 2013 A better-than-expected survey of Spanish manufacturers was mainly driven by export growth. That may be a sign that reforms are making the country more competitive. That could push up growth. But there will be no real recovery until Spain’s crippling unemployment rate eases.
Making sense of the ECB’s negative rates dilemma 3 Jun 2013 European Central Bank officials talk the idea of negative rates up and down. This radical monetary policy might pull the fragmented euro zone back together. It could also backfire. The Breakingviews guide to negative rates explains why policymakers are being coy.
Agnellis brace for Fiat-Chrysler merger endgame 3 Jun 2013 The Agnellis want to maintain their 30 percent stake in Fiat after the Italian carmaker has merged with Chrysler. The 2 bln euro sale of their stake in Swiss inspection group SGS gives them ample means to take part in a potential capital hike after the deal.
Founder’s return shows depth of malaise at Infosys 3 Jun 2013 Narayana Murthy is coming out of retirement to retake the helm of the former poster child of Indian software outsourcing. Below-par sales and sliding margins underscore the need for Infosys to find new sources of growth - or return its $4 billion cash hoard to shareholders.
Hugo Dixon: Arming Syrian rebels fraught with risk 3 Jun 2013 The UK, France and maybe America are edging towards a policy of arming “moderate” rebels if peace talks don’t produce a breakthrough. The idea would be to tilt the war in favour of moderates, and against both Assad and Sunni jihadists. But it might not work out that way.