Chips power Samsung and activist case for change 7 Oct 2016 The tech giant shrugged off the impact of its Note 7 fiasco in its quarterly results, thanks to growth in chips. Yet investors undervalue this and other exciting units based on a near 50 pct discount to the sum of its parts. It boosts Elliott's call for the Lee family to act.
British PM’s attack on QE sends wrong signal 6 Oct 2016 Theresa May has criticised the effects of ultra-low interest rates and promised changes. She's right that monetary policy alone cannot revive growth. If the government wants to boost the economy, the solution isn’t to undermine the Bank of England - but to lift spending.
UK migrant clampdown will be self-defeating 5 Oct 2016 Companies may soon face name-and-shame policies that make it less appealing to hire skilled foreign workers. It's part of Theresa May's plan to cut migrant numbers. This is a harmful option for a country with poor productivity and a deficit of domestic expertise.
ECB taper whimper is the most low growth permits 5 Oct 2016 Reports that the European Central Bank may reduce asset purchases caused a blip up in bond yields. But it's a far cry from the 2013 U.S. tantrum, and rightly so. Weak growth and insufficient public investment will force monetary policy to stay loose despite diminishing returns.
Samsung’s biotech bet undergoes first major trial 5 Oct 2016 As smartphone growth slows, Samsung heir Jay Y. Lee is targeting a nascent market for drugs made from living cells. Selling up to $2 bln of shares in the South Korean group's BioLogics unit will test investor appetite for a developing technology and an unfamiliar business model.
Sompo buys $6 bln policy against declining Japan 5 Oct 2016 The Tokyo firm is acquiring U.S.-listed peer Endurance. Japanese insurers' hunger to diversify from a tough home market has sparked a string of big deals, sometimes at crazy prices. A $6.3 bln price tag here looks fairly sane given Endurance's assets and growth prospects.
Guest view: Insider trading demands top-court tips 4 Oct 2016 The U.S. Supreme Court has been ducking such cases, leaving even legal eagles confused about what defendants like Leon Cooperman may have done wrong. Columbia Law School senior fellow Reynolds Holding says a big case this week finally gives justices a chance to lay down the law.
China couriers muster capital for land grab 4 Oct 2016 ZTO Express has filed to list in New York, the first Chinese courier firm to test U.S. investor appetite for e-commerce logistics plays. Industry revenues are soaring thanks to the online shopping boom, but so are costs. ZTO's healthy margins set it apart from rivals.
Idle Congress augurs little help for U.S. economy 3 Oct 2016 Legislators departed Washington after yet another unproductive session. With only 221 laws enacted, they could end 2016 with the fewest in over four decades. For all the campaign talk of immigration and tax reform, deepening partisan obstinacy is what awaits the next president.
Trump taxes imply he’s a living “special interest” 3 Oct 2016 The White House hopeful may not have paid personal income tax for years because of a $916 mln loss in 1995. Rules relating to certain corporate structures could explain it. Trump's economic plans seem to favor such firms. It shows why candidates' taxes need scrutiny.
Falling inequality hides rich nations’ failings 3 Oct 2016 The gap between the very rich and very poor has fallen since 2008 - even in developed countries. That’s the surprising finding of a new World Bank report. But a different measure shows rich countries are less good at sharing prosperity. Growth is too weak to mask this failure.
Guest view: Where is the IMF on Greece? 3 Oct 2016 The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.
Hungary throws straw on Europe’s values bonfire 3 Oct 2016 Only a minority voted against EU migrant quotas. Yet almost no one voted for them. Like Britain’s Brexit supporters, Hungarian nationalists want both the benefits of free trade and control of immigration. Europe can resist, but the calls to blunt its ideals are getting louder.
Britain starts Brexit; now so might banks 3 Oct 2016 The UK's two-year process to leave the European Union will kick off by the end of March. Financial groups wondering whether to move operations now have the same uncertainty as before, only with a hard 2019 deadline. That could prompt the start of the big relocation.
Golden Chinese shopping spree will tarnish soon 3 Oct 2016 China's "Golden Week" holiday will see mainland tourists splurging in bazaars from Milan to Macau. Retailers should enjoy it while it lasts. Tax cuts will make shopping at home less painful, and younger Chinese prefer experiences to handbags. That will cap future growth.
Colombia’s “no” to peace will backfire on economy 2 Oct 2016 Voters on Sunday narrowly rejected a deal with FARC rebels that aimed to end five decades of civil war. The result shreds the credibility of the president and pollsters. The desire to be tougher on the rebels proved stronger – just – than the appeal of a needed peace dividend.
Viewsroom: One hundred days of Brexit 30 Sep 2016 Oct. 2 marks 100 days since Britain’s vote to leave the EU. How has the economy fared, and will the City of London weather Brexit? Breakingviews writers discuss trade deals, financial services and the scale of the challenge facing Prime Minister Theresa May.
Trump cold shoulder for TV ads may set the trend 30 Sep 2016 TV loves the GOP presidential nominee, but he has spent only $78 mln so far on political ads. Broadcasters usually count on an election-year windfall, but spending is forecast to fall and digital upstarts like Snapchat are in the mix too. Trump's playbook could become a classic.
Venezuelan debt swap may ease coming pain 30 Sep 2016 State oil company PDVSA sweetened earlier terms and is now offering more bonds maturing in 2020 in exchange for $5.3 bln worth coming due next year. With crude prices rising, there's a glimmer of hope of postponing default. And investors would get a bigger claim once it comes.
Ralph Whitworth: the gentleman activist investor 30 Sep 2016 The Relational Investors co-founder, who died at 60, was an anomaly in the sharp-elbowed world of forcing change at companies. He preferred working behind the scenes instead of getting into public fights. That helped reluctant boards grow more comfortable talking to agitators.