Americas

OPEC condition upgraded from terminal to ailing

7 December 2018

The oil producers’ club agreed a 1.2 million bpd cut with allies like Russia, hiking prices. After Qatar’s exit, failure to do so would have destroyed the cartel’s credibility. But the details imply OPEC leader Saudi’s wishes are subordinate to those of Russia and the U.S.

Cannabis starts to copy tech’s Indian rope trick

7 December 2018

Marlboro maker Altria is spending $1.8 billion – more than a 40 percent premium – for a 45 percent stake in pot grower Cronos. The valuation is both high and irrelevant. Cannabis is beginning to adopt Silicon Valley’s belief that the winner is whoever has the most cash.

Review: The uncertain new world of labour

7 December 2018

The number of worried and desperate workers seems to be increasing. Some cultural critics see a symptom of modern social decay. “Precarious Lives” looks at the numbers and finds mild damage. Its main finding: a strong welfare state is welcome, but this problem is hard to solve.

Ericsson debacle exposes costs of anti-Huawei push

7 December 2018

The Swedish group’s glitchy software crashed some telecom networks. Yet it may grab market share, with its rival’s CFO under arrest and governments backing away from the Chinese company’s kit. A more concentrated market would mean higher prices and a risk of further big outages.

Mike Bloomberg can learn from Thomson Reuters

6 December 2018

The former New York mayor says he’ll try to sell his financial-data empire if he wins the 2020 presidential race. Lucky for him, money is plentiful for a buyout that could be valued at $40 bln. And there’s a blueprint he can use: Thomson Reuters’ sale of Refinitiv to Blackstone.

Och-Ziff truce and rejig are small mercies

6 December 2018

Daniel Och is finally giving up his pioneering listed hedge-fund creation. After massive value destruction and a power struggle, he is ceding control and a big ownership stake. The firm will also be taxed as a corporation, not a partnership. For investors, the road back is long.

Sears gets right kind of message from wrong person

6 December 2018

Chairman Eddie Lampert is offering $4.6 bln to buy the U.S. retailer out of bankruptcy and save 50,000 jobs. Focusing on employees is laudable. But Lampert failed to turn Sears around in more than a decade of trying. Its staff and advisers would be better off with new ideas.

Viewsroom: Trade war pause may only delay fight

6 December 2018

U.S. President Donald Trump and China’s leader Xi Jinping agreed to a cooling-off period in an escalating tariff spat. Will the ceasefire yield results or is it a stalling tactic? The markets are spooked. Breakingviews columnists discuss the issue from both sides of the Pacific.

U.S. markets could be Huawei’s best ally

6 December 2018

Stocks fell after the CFO of the Chinese telecoms group was arrested for U.S. sanctions violations, jeopardizing a U.S.-China trade truce. President Trump helped Huawei rival ZTE when it was in a similar boat. His keen interest in buoyant markets may lead him to act again.

Three roads lead to three $830 bln-ish values

6 December 2018

Apple, Microsoft and Amazon.com are neck-and-neck as the biggest companies by market cap. The valuations of the mature iPhone cash cow, enterprise-software giant and e-commerce behemoth may be similar, but they reflect the rock-paper-scissors opportunities and risks each faces.

The Exchange: Erika Karp talks climate change

5 December 2018

As world leaders meet in Poland to beef up the Paris accords, Cornerstone Capital’s founder explains why the economics of battling global warming trump naysaying politicians. She also lays out how to spot green washing and says investors who ignore ESG factors should go to jail.

Hadas: Conglomerates will never die

5 December 2018

The break-up of GE and United Technologies marks the end of an era, but there will always be good reasons to bind together diverse businesses. Removing barriers brings synergies, spreads talent and saves on taxes. The trick is to avoid stultifying complexity and financial games.

AT&T fails to grasp the true value of “Friends”

5 December 2018

It may let Netflix keep the TV show for around $100 mln, more than triple the price last time round. Given AT&T plans to launch its own video service, depriving a rival of a blockbuster could have been smarter. Maybe Time Warner’s new owner isn’t cut out for the media shark-tank

Silicon Valley mud fight leaves all splattered

4 December 2018

Apple boss Tim Cook is taking aim at social networks' privacy issues. Meanwhile Facebook CEO Mark Zuckerberg has been keen to point out the iPhone’s dominance. Where other industries stick together in the face of regulatory challenges, tech is making politicians' work easier.

U.S. bond yields turn from green light to red

4 December 2018

Treasury yields plunged to a three-month low on Tuesday and flashed a potential recession signal. While easy rates have supported the economy and stock market during the recovery, the latest moves suggest troubling weakness. They also raise the risk of a Fed policy mistake.

Motown shifts recovery up a gear

4 December 2018

Detroit is selling its first bonds since taking back full financial control from the state. The city that went bankrupt in 2013 now has balanced budgets, higher tax revenue and a surplus. But issues like blight and a crumbling school system present tricky speed-bumps to negotiate.

Uber might scoot its way toward profit

3 December 2018

The ride-hailing giant may want to buy into an e-scooter mover like Bird or Lime. Two-wheelers may become a big part of the tech-driven shift in mobility habits. And without pesky drivers, there’s a bit more scope to make money one day. That could help address a big Uber problem.

Big Weed is better off without Big Tobacco embrace

3 December 2018

Altria can easily afford to swallow $2 bln pot producer Cronos. It’s the seller – and its peers – that could pay a high price. Companies want the product to be seen as medicinal not lethal, edible not smokable, and more like beer than tobacco. Not all capital infusions are equal.

U.S.-China talks depend on speaking same language

3 December 2018

The two countries’ trade-ceasefire spin reflects different interpretations and priorities. Whether on auto tariffs or Chinese students in America, negotiators may struggle to restore norms before hostilities began, let alone go further – especially if starting points are garbled.

Tribune gets better M&A script in second season

3 December 2018

Nexstar is buying the U.S. media group for $4.1 bln. Tribune recently pulled out of an earlier deal after suitor Sinclair irked U.S. regulators. This go-around looks like a stronger plot. The price is higher, the buyer’s record is strong and there’s a clean sheet with watchdogs.