Edition:
Deutschland

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at http://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

Breakingviews - HSBC is firing on just one shaky cylinder

HSBC Chief Executive Noel Quinn is making a decent stab of reviving the ailing $90 billion lender, but the ground keeps shifting beneath his feet. With low interest rates sapping revenue in every division aside from investment banking, cost cuts at the London-based bank will have to go much further than originally planned to get returns back up to a respectable level.

Breakingviews - TikTok learns old lesson about U.S. art of deal

TikTok is finding out the hard way that the Oval Office may hold the trump cards in deals that raise national security concerns. President Donald Trump pushed for a sale of the popular video app, then threatened to ban it, prompting a call between him and suitor Microsoft’s Chief Executive Satya Nadella to salvage talks. The seller, parent company Beijing-based ByteDance, and other potential buyers have much to worry about.

Breakingviews - Tricky bidding war brews over LSE’s Italy bourse

An attractive European exchange asset may be coming to the market. London Stock Exchange Group said on Friday that it might sell Borsa Italiana or the unit’s stake in the MTS bond trading platform to win European Union approval of its $27 billion bid for data provider Refinitiv. Rivals Euronext and Deutsche Boerse are likely bidders. But they risk a messy three-way tussle. 

Breakingviews - Alphabet’s moonshots are falling back to earth

Alphabet’s long-term bets are posing at least a short-term problem. The $1 trillion parent of the Google search unit is struggling more than rivals. Second-quarter revenue fell by 2% from a year earlier, while Facebook's sales increased. And the non-core projects that were once intriguing these days look more like dead weights.

Breakingviews - At least U.S. GDP trajectory is a known unknown

Breaking records can be good – but not when they’re for economic disintegration. U.S. GDP crashed at a 33% annualized pace in the three months to June, the Bureau of Economic Analysis said on Thursday. At least the trajectory of America’s economic output is a known unknown: The current quarter is less bad. How much so is anyone’s guess, though. And the Federal Reserve – and especially Congress – can shift the outcome.

Breakingviews - Viewsroom: Silicon Valley spotlight

The CEOs of Big Tech companies faced off against U.S. lawmakers during an antitrust hearing that raised new evidence about past acquisitions. Meanwhile, Japan’s Ootoya and Colowide engage in a food M&A fight. And: SoftBank CEO Masayoshi Son’s next steps.

Breakingviews - Weakened Shell offers dim hope for pre-virus glory

Oil majors may be past the worst of the coronavirus-induced crash, but the recovery is likely to be long and arduous. Royal Dutch Shell, Chief Executive Ben van Beurden on Thursday said the $122 billion company’s sales fell by nearly two-thirds in the second quarter, as crude prices collapsed during lockdowns. The pandemic will leave a legacy of rising debt, diminished investment and uncertain demand. Juicy investor payouts are the natural sacrifice.  

Breakingviews - Credit Suisse takes right leaf out of rival’s book

Credit Suisse has already been through the wringer. Former Chief Executive Tidjane Thiam cut 4.3 billion Swiss francs ($4.7 billion) of costs at the Zurich-based lender between 2015 and 2019. Now, his successor, Thomas Gottstein, will make further annual savings of 400 million francs, merge his investment banking units and may shrink the proportion of capital allocated to that business. His plan, which amounts to mimicking UBS, is likely to narrow a valuation dis

Breakingviews - Mumbai’s slums test lockdown logic

Just maybe, India’s financial capital can start to look beyond its Covid-19 lockdown. An antibody testing study has found that a whopping 57% of people sampled in densely populated slum areas of Mumbai had coronavirus antibodies. Some 40% of the city’s 20 million or so residents live in similar settings, where toilets and water supply are often shared and social distancing is impossible. The result tests the logic of the city's strict lockdown.