India’s Common Man Party is investors’ frenemy 3 Jan 2014 After taking power in the state of Delhi, the new anti-corruption party is set to play spoiler in the 2014 general election. That makes seasoned politicians nervous, and investors wary. But voters’ willingness to put a premium on good governance is cause for optimism.
This summer’s blockbuster film could be Chinese 3 Jan 2014 Stonking box office returns at home mean China’s cinema operators are branching into film studios. Add in acquisitions of overseas theatre chains, and a Chinese-produced blockbuster on U.S. screens is coming soon – if China’s government can lay off the propaganda.
Time for Siemens’ turnaround CEO to deliver 3 Jan 2014 Joe Kaeser is now piloting Europe’s biggest engineer. He has easy profit targets ahead, and some obvious levers to pull: disbanding a sprawling unit, ditching trains and avoiding big M&A. But a stock rally means these moves are largely priced in. So any setbacks could hurt.
The chilling echoes of 1914, a century on 3 Jan 2014 A rerun of descent into global war is really rather unlikely. But some of the danger of 100 years ago is present today. Late 19th century increases in tariffs helped to create competing blocs. A similar multi-polar economic world is now emerging.
Selfish behavior will propel sharing economy 2 Jan 2014 New matchmaking business models are thriving in large part by forging into gray areas of tax and regulation. The likes of Uber, Airbnb and Lending Club face growing scrutiny from authorities. Just as Amazon did, though, self-interest should inspire some canny maneuvers.
Stock surge stretches Fiat acceleration hopes 2 Jan 2014 Shares of the Italian carmaker leapt 15 percent after it secured an affordable way to take full ownership of Chrysler. The deal is good news and underpins an expected recovery in earnings. But investors are in danger of overpaying for the stock.
Past predictions should ensure one future result 2 Jan 2014 Alas, not all Breakingviews prognostications for 2013 panned out. Some were spot-on, others missed the mark. But the guiding philosophy for this annual attempt at agenda-setting financial foresight is to spark lively discussions. In that sense, the 2014 edition can deliver again.
Chrysler deal gives Fiat a new year’s turbo boost 2 Jan 2014 Boss Sergio Marchionne comes out on top in the $4.3 bln pact with the union trust fund for the rest of the carmaker’s shares. It ends a messy dispute, avoids an IPO, doesn’t overtax the Italian firm’s finances and gives Marchionne more resources to get Fiat driving forward.
Recovery will only increase inequality 2 Jan 2014 Growth is reviving thanks to massive fiscal and monetary stimulus. The benefits flow directly to property owners, but trickle down slowly to the unemployed. The losses for less well-off are permanent, and there has been little effort to reverse the wealth grab by the ultra-rich.
Small tech best placed to take on Big Brother 2 Jan 2014 The lesson from 2013: there are grievous flaws in security systems once thought virtually impenetrable. Companies and their data need better protection. With many big players compromised, small tech groups may step up and make a lucrative stand against surveillance.