BREAKINGVIEWS
Zuckerberg's supervoting shares prove double-edged
Investors may one day regret the founder’s grip on Facebook. For now, though, it allows him to retain control while starting a long process of giving away 99 pct of his $45 bln of stock. The beneficiaries of Zuckerberg’s charity will see the silver lining to the governance flaw.
Yahoo CEO has run out of time for a turnaround
After three years, it’s clear neither Marissa Mayer – nor maybe any top executive – can save the flailing internet company. The board’s job now should be to determine the best way to tidy up the firm’s affairs. Mayer’s best legacy may be that she got a good price for the core business.
Bank rule zealots will be forced to back down
Basel-based standard setters are finalising capital adequacy reforms that banks call “Basel IV”. But they clash with European policymakers’ growth plans and their Anglo-Saxon counterparts’ push for regulatory easing. The Bank of England’s newfound leniency will embolden others.
CVC gives wake-up call to old-style asset managers
The private equity house is buying half of UK breakdown service RAC from Carlyle at a valuation of 2.2 billion euros. In some ways it’s a bog-standard secondary buyout. But it also sees private equity invading the turf of public market investment institutions.
Essar buyout exposes Indian stock market weirdness
Minority investors approved the delisting of Essar Oil last year. Now the controlling Ruia brothers are planning to sell half the $4.5 bln company to Russia’s Rosneft. The regulator has ordered Essar to compensate investors later. It’s a bizarre outcome in which no one looks good.
Morgan Stanley tackling final profits puzzle piece
CEO James Gorman may lay off a quarter of fixed-income traders. The unit’s wild quarterly swings usually decide whether the firm hits or misses financial-return targets. While cuts will help, what the bank does with the division’s product mix and capital would be more telling.
BlueCrest pinpoints major drag on returns: clients
The $8 billion hedge fund will return capital to investors. High costs, increasingly risk-averse clients, and uninspiring performance didn’t mix well. From now on, BlueCrest will be free to chase higher returns, but finding them means taking on much more leverage.
Church of England could guide Vatican audit
Pope Francis wants to appoint an external auditor of the Vatican’s wealth. About time too. Valuing assets such as the Sistine Chapel will prove an imperfect science. Yet the example given by the Church of England suggests that Good Book values may flow from good bookkeeping.
Cash is far from meeting its Waterloo
Banknote printer De La Rue is cutting its output by a quarter amid a global glut. Denmark, Nigeria, Ireland and Swedish supergroup Abba are all chipping away at the status of cash. Yet growth in currency remains positive. The case for ditching it is compelling but impractical.
Another reckoning looms for Sharp
Lenders have bailed out the embattled Japanese electronics firm twice in the past three years. A more radical overhaul now looks likely – perhaps involving state-backed fund INCJ and affiliate Japan Display. If credit markets are right, there is little value for shareholders.
Mark Zuckerberg raises philanthropic bar to 99 pct
It’s not disruption, but Facebook’s founder has built on The Giving Pledge championed by Warren Buffett and Bill Gates. Zuckerberg will give away nearly all his wealth, not half, in his lifetime. After moving fast and breaking things, he’s moving judiciously and learning things.
Puerto Rico debt payment marks end of fiscal rope
The cash-strapped U.S. territory scraped together $355 mln for creditors, avoiding default on its government-guaranteed debt. A $945 mln payment due on Jan. 1 will be harder to deliver. Unless Congress offers relief soon, bondholders will still face a messy restructuring.
Spinoff may recharge drained RWE
The German power group may soon list renewable, grid and retail units separately, leaving behind a dirty old coal and nuclear business laden with debt. It looks like an attractive way to boost the 6.3 billion euro valuation. The downside is a potentially huge stock overhang.
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Sumner Redstone's health ails corporate governance
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Manchester City deal is good business for China
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China's new currency status points to weaker yuan
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China will find schmoozing IMF was the easy bit
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Bankers catch a crumb in critical conflicts case
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BTG Pactual depends on trust more than ex-boss
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BHP’s Brazil disaster points to dividend cut
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Deutsche Wohnen takes hostile bid defence too far
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Bank of East Asia feels weight of its China drive
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Stress test implies end to UK bank capital hikes
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Gases suppliers caught by two deflating bubbles
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South Korean web bank hopes ignore offline gloom
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Billionaires add thrust to clean-energy moon shot
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AB InBev's SABMiller deal losing big-brand fizz
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Bank living-will laggards risk capital punishment
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Delta Lloyd waves white flag on insurer capital
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Toshiba's overdue nuclear illumination is welcome
