Tata’s head hunt calls for clarity on governance 26 Oct 2016 A search is on for a leader of the $100 bln Indian conglomerate after the sacking of its chairman. Big names like Indra Nooyi and Arun Sarin are doing the rounds. But to attract top talent, Tata needs to address governance. A commitment to limit meddling would be a good start.
SoftBank’s $100 bln VC dream requires creativity 26 Oct 2016 Masayoshi Son's group has pledged a quarter of the total touted for a giant technology fund venture with the Saudis. That's a lot for a company with a strained balance sheet. But fees from the fund, hybrid bond issues and asset sales mean Son has plenty of ways to find cash.
Could Trump TV be a business success? 25 Oct 2016 If the real estate mogul loses the U.S. presidential election, he may start an online venture tapping his base of supporters. A new Breakingviews calculator lets readers decide how many viewers he could attract and how much it might cost to see if it would make any money.
Plenum adds to jitters over Chinese outbound M&A 25 Oct 2016 A leadership conclave this week is a prelude to a reshuffle of the party's top cadre. That's a distraction for the officials whose jobs hang in the balance at state firms like ChemChina. And it's one more reason to worry about the completion of Chinese outbound deals.
China’s “bicycle Ubers” worth taking for a spin 25 Oct 2016 MoBike and ofo are billed as sexy pedal-powered answers to the ride-hailing app. The startups, backed by local tech giants, are actually asset heavy and capital-intensive. They face unique risks, but pairing smart hardware with rental economics justifies some enthusiasm.
Internet of Things gets wakeup call from fridge 24 Oct 2016 Twitter, PayPal and other major sites were knocked offline after hacked devices were used to overwhelm an important web-traffic hub. For Cisco, Google and others moving headlong into the networking of everyday objects, it's a clear warning about the many security risks involved.
Foreigners give Chinese drug maker a healthy glow 24 Oct 2016 CR Pharma is raising $1.8 bln from its Hong Kong IPO. A holding company structure and the rising price of donkey hide, a key ingredient, justify a discount valuation to peers. But a respectable roster of big foreign investors underscores the healthy prognosis for the sector.
China Oceanwide buys GE sloppy insurance seconds 24 Oct 2016 The private conglomerate run by Lu Zhiqiang is paying $2.7 bln for U.S. insurer Genworth Financial, which was spun out of the industrial giant and has since wasted away. It is not clear the Chinese buyer has what it takes to turn around Genworth, but the deal puts it on the map.
Trump TV could be one of his more lucrative ideas 21 Oct 2016 Hints that the U.S. presidential candidate might start a media firm grow stronger by the day. A traditional cable channel is risky. But a Breakingviews analysis shows that by going online, nabbing 500,000 subscribers and keeping talent costs in check, the outfit could make money.
Venezuela’s efforts to buy time grow ever costlier 20 Oct 2016 The government has suspended a recall referendum drive against hapless President Maduro even as it tries to entice creditors of ailing state oil firm PDVSA to accept a sweetened bond swap. The Bolivarian revolution's bid to perpetuate itself is exacting an unsustainable price.
Demise of India’s IT firms is greatly exaggerated 21 Oct 2016 Growth has slowed at local giants Tata Consultancy Services and Infosys. But the global economy will recover and the outsourcers can thrive as new technologies are rolled out. In the meantime, returning more cash would help dispel the impression of complacency.
Viewsroom: Airing Trump TV 20 Oct 2016 The presidential candidate's poor showing is hurting his businesses, but a news network could pay off if he loses the election. Saudi Arabia's monster bond deal can't mask bigger problems. And bank earnings take in the Wells Fargo effect while Netflix investors lose the plot.
Philip Green is an advert for deferred knighthoods 20 Oct 2016 British MPs voted to strip the rag-trade billionaire of his title. Yet despite the collapse of retail chain BHS, Green hasn’t done anything the law didn’t allow. Such unpleasantries might be more easily avoided if knighthoods were treated more like executive bonuses.
Hong Kong swats short-seller too hard 20 Oct 2016 Banning U.S. short-seller Andrew Left from Hong Kong's stock market for five years, and threatening future criminal penalties, is harsh. This will hurt the market's long-term health. The timing is also unfortunate, given concerns over rising mainland influence on the city.
Brazilian economy flirts with new virtuous circle 19 Oct 2016 The central bank is set to cut its key interest rate for the first time in four years. Inflation is easing, growth is set to resume, and Congress favors spending caps. Even state oil giant Petrobras now has a less batty fuel-price policy. It's a good start to a long journey.
Portugal delays day of reckoning for another year 19 Oct 2016 Further tax increases mean the troubled country should avoid a debt downgrade, keeping its bonds eligible for ECB money-printing. Yet Lisbon's high debt load and weak growth mean the risk of a restructuring hasn't gone away. It could kick in after next year's German elections.
China’s doped economy is low on happy pills 19 Oct 2016 China has notched up three successive quarters of eerily consistent GDP growth, but the results were medicated by housing speculation, government spending and the Fed's rate caution. That may have tranquilized investors, but as painkillers wear off, the economy's legs will wobble.
Aussie gambling deal faces better odds as takeover 19 Oct 2016 Betting group Tabcorp is buying larger rival Tatts for almost $5 bln in stock and cash. The set-up makes more sense than last year's aborted merger, and the combined group would be better placed to take on foreign bookies. The real gamble is with antitrust regulators.
Indian online-travel M&A could use a roadmap 19 Oct 2016 Shares in U.S. listed MakeMyTrip jumped 50 pct on the back of a $1.5 bln merger with ibibo, a private rival backed by Naspers. That is despite the pair offering almost no details. It shows how desperate investors are to see a reduction in competition and a path to profitability.
UK watchdog falls for its own league-table spin 18 Oct 2016 The Financial Conduct Authority has identified some dodgy IPO practices. But after 18 months of work, it's lacking concrete solutions while still griping about how banks use league tables. The carefully tailored rankings fool no one, and the FCA should focus its effort elsewhere.