China’s gains tax won’t put a roof on house prices
By John Foley
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
China’s house prices are too high and local tax revenue too low. What better way to address both problems than taxing capital gains on property? China’s cabinet has promised to enforce such a levy on homeowners. While that drove down the share prices of property developers, it is unlikely to do the same for real estate values.
Weak CEO the least of Groupon’s woes
By Robert Cyran
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Groupon’s woes won’t end by firing Chief Executive Andrew Mason. The troubled Internet daily deal firm’s stock rallied around 5 percent after the board sent its witty boss packing. But with overseas operations a mess, coupons in decline and a controversial chairman calling the shots, the company has bigger problems.
$6.6 bln won’t be enough to end Elan’s rash dreams
By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Royalty Pharma’s $6.6 billion indicative offer for Elan probably won’t be enough to end the latter’s ambitious dreams. The biotechnology company has grand M&A plans after selling most of the rights to its blockbuster drug, Tysabri, for $3.25 billion earlier this month. Royalty Pharma may well use that cash more wisely than Elan’s current bosses, but a 4 percent premium won’t seal the deal.
Apple’s halo loses shine in investor fight
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
No one looks too good in Apple’s fight with David Einhorn. The Greenlight Capital founder scored a legal point, but better governance wasn’t his main objective. Apple comes off amateurish. The California Public Employees’ Retirement System, despite worthy shareholder-friendly aims, seems careless. The Securities and Exchange Commission also missed a trick.
Citi pay plan raises the bar, just not enough
By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Citigroup’s new executive pay plan raises the bar, just not quite far enough. The bank’s board has implemented a compensation scheme with more rigorous targets for Chief Executive Michael Corbat and his lieutenants. One important performance metric, however, keeps expectations too low.
Heinz deal suggests Big Food deserves a fresh look
By Quentin Webb
The author is a Reuters Breakingviews columnist. The opini0ns expressed are his own.
After the Warren Buffett-backed takeover of Heinz, Big Food merits a fresh look. Makers of meals, sauces and spreads may offer better value than is immediately obvious.
SocGen short of options to solve biggest problem
By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Societe Generale looks short of options to solve its biggest problem: it doesn’t make enough money. Full-year results on Feb. 13 indicate that the French bank is improving its capital position, and the threats from strict government regulation have receded. But even after the bank restructures its business, it will take time before it solves its fundamental problem – poor return on equity.
Tokyo stocks: this time could really be different
By Robert Cole
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Once bitten, twice shy. In fact, investors in Japan have been bitten many times by the seductive notion that the land of the rising sun is emerging from its bear-market night. They would be forgiven for shying away this time.
Dividend reform won’t fix China SOE money-go-round
By John Foley
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
China’s elaborate money-go-round starts and ends with its cash-hoarding state-owned enterprises. So a plan to make them pay bigger dividends sounds promising. Still, if the goal is to return cash to the people, there is a long way to go.
Weak yen makes Japanese electronics firms giddy
By Peter Thal Larsen
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
Japan’s assault on the yen has produced some clear winners: investors in the country’s beaten-up consumer electronics industry. Shares in Panasonic jumped 17 percent on Feb. 4 after the group reported a less-severe-than-expected quarterly loss. The hope is that stronger exports and recent cost-cutting will transform earnings. But with revenue still shrinking, the recent rally is largely based on hope.
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FEATURED VIDEO
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Reuters Breakingviews: Swiss shift power to shareholdersMar. 4 - The Swiss move on executive pay rightly empowers shareholders to curb excesses, says Breakingviews. It’s time for corporate boards to listen up.Video
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Breakingviews: CEO discountedMarch 1 - Everyone wants their boss to be fun. Antony Currie and Robert Cyran discuss why wit wasn’t enough for Groupon chief Andrew Mason - and why removing him won't be enough to turn around the Internet coupon site’s fortunes.Video
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Predictions 2013: Exploring the year ahead.
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