BREAKINGVIEWS
Job data rarely work as gauge of economy's health
U.S. employers did lots of hiring last month, but that means less than investors may think. Nonfarm payroll numbers are volatile, imprecise and prone to revision. They’re important mostly because traders, analysts and journalists give them outsized attention. A demotion is overdue.
Square's down round offers cautionary unicorn tale
Jack Dorsey’s payments firm may go public for $3.5 bln, or 41 pct below its last private valuation. Rising competition, losing Starbucks’ business and deflating markets are only partly to blame. It’s a sign to well-funded upstarts that good ideas don’t always guarantee success.
Valeant CEO gets called on $100 mln excess
Paying bosses in equity nudges them to serve shareholder interests. The pharma giant went to extremes, allowing chief Michael Pearson to borrow heavily against his shares. The tumbling stock forced him to repay the debt - an example of how skewed incentives have rocked Valeant.
Brazil dam disaster tests BHP’s mega-mining model
Investors ditched BHP Billiton shares after a jointly owned dam failed in Brazil. While mining is much safer than it used to be, such catastrophes are an inherent risk. A big balance sheet and diverse income streams mean it can absorb the financial consequences better than most.
Richemont shows luxury doesn't run like clockwork
The Cartier owner reported a disappointing 3 percent increase in first-half sales. Hong Kong watch sales slumped. It’s tempting to look for economic trends, but the best explanation might just be that after a decade of runaway growth, luxury is returning to its old, faddish ways.
Allianz’s Pimco recovery looks largely priced in
The German insurer’s bond fund Pimco saw inflows in October for the first time in 30 months. That takes the edge off a slightly disappointing set of third-quarter numbers and legal challenges from founder Bill Gross. The catch is Allianz shares already trade at a premium.
D-day nears for Tata Steel as Europe woes grow
The Indian steelmaker has written off another $1.3 billion at its ailing European division. Under pressure from cheap Chinese imports, the unit’s EBITDA has turned negative. Tata will need to make tough choices about the business it bought in 2007 sooner rather than later.
Exxon investors may rue climate-risk indifference
The oil major’s shares barely budged on news New York is investigating whether the company misled owners about global warming. The probe adds legal teeth to the carbon-bubble debate and may spread to rivals. Shareholders seem more worried about oil prices. That looks shortsighted.
UK brokers take opposing bets on future of trading
ICAP may sell its voice-trading business and related bits to Tullett Prebon for stock, some of which would go to the seller’s shareholders. The mooted deal is messy. But it allows Tullett to double down on its core competence while ICAP can bet on an electronic future.
Telecom Italia tidy-up won’t fix strategic clutter
The Italian telco is converting its outdated saving shares and raising 572 mln euros. Stake-building by French tycoons Vincent Bollore and Xavier Niel may have made conversion more attractive. But other shareholders remain in the dark about what the billionaires really want.
Darty-Fnac deal carries digital danger discount
Books and music retailer Fnac has sweetened the terms of its bid for homewares rival Darty. Its 615 mln stg offer has board agreement too. The premium is still skinny when set against synergy estimates. That probably reflects the big threat from online rivals.
No knockout in Australia's $6 bln waterfront brawl
Canada’s Brookfield moved to salvage its takeover of Asciano, buying a 19 pct stake to match last week’s lightning raid by rival Qube. The Aussie challenger could hit back by making a full bid for the ports and rail group. Or antitrust referees could haul Brookfield away.
Bill Ackman pushes limits of activism at Valeant
The hedge fund boss hinted the drugmaker’s CEO may need to go and was invited into the boardroom mid-crisis, according to a newspaper report. Ackman also seems to have usurped Valeant’s defense. The $55 bln of quickly lost market value suggests his involvement isn’t helping much.
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Shale drillers can do little more with any less
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Electra heat shifts from the board to cage rattler
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SocGen and Credit Agricole are deceptively similar
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AstraZeneca goes two steps forward, one step back
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StanChart shakeup turns screws on India's tycoons
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Expedia finds back door to Airbnb's market
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Financial tech has as much to gain as fear from D.C.
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Three roadblocks to real change at scandal-hit VW
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Boardroom gender targets only do half the job
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Barclays, not HSBC, should mull quitting the UK
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BTG Pactual earnings flatter its performance
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Qatar’s austerity drive will be felt beyond Doha
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Honda snub bursts Takata's financial force field
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Facebook a master at hooking users on mobile habit
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Rainbow-chasing unicorns get Groupon reality check
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Trader's conviction vindicates juror cyber smarts
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Time Warner leaving gate ajar for Fox return