LONDON (Reuters Breakingviews) - ThyssenKrupp Chief Executive Heinrich Hiesinger is finally getting real on steel. More than two centuries after Friedrich Krupp started making cast steel in Germany’s Ruhr region, the industrial group is backing out of the industry. The historic joint venture with Indian rival Tata Steel unshackles it from a fickle, capital-intensive business which for years has been struggling to earn its cost of capital. It can pay ThyssenKrupp dividends on four levels.
TOKYO (Reuters Breakingviews) - South Korea's President Moon Jae-in has a bright future with Cirque du Soleil, if he can keep balance on the world's thinnest diplomatic high wire. So far his attempts to juggle competing demands from Beijing and Washington aren't paying off. Both are using the North Korean crisis to score trade concessions. Moon should get off the high wire and pursue a third way: teaming up with Japan and other Asian powers.
LONDON (Reuters Breakingviews) - Britain’s vote to leave the Europe Union took just one day – but the divorce process is dragging on. In October, talks between the two sides are supposed to shift from the terms of exit to the terms of re-engagement. There’s little chance of that happening. Despite the positioning papers published and legislation initiated, progress is being slowed up by bickering – within the UK government and between London and Brussels – as well as technicalities and economic
HONG KONG (Reuters Breakingviews) - China gave the auto industry an electric shock by announcing ambitions to phase out the combustion engine in the world’s largest car market. Details and deadlines are scant, but draft regulations accelerating the development of electric vehicles offer a glimpse of Beijing’s strategy: foreign automakers will pay the price.
LONDON (Reuters Breakingviews) - Germany’s election is not short on colour. Angela Merkel is all but certain to secure a fourth term as chancellor, and the right-wing Alternative for Germany (AfD) will most probably win its first parliamentary seats. But otherwise the poll remains an open race. Breakingviews breaks down the possible combinations, and their consequences for Germany – and for Europe.
HONG KONG (Reuters Breakingviews) - China's drug companies could provide a boost to Big Pharma. This week’s New York initial public offering of Shanghai-based Zai Lab highlights a new breed of innovative eastern drug makers specializing in treatments made from living cells known as biologics. They are eyeing a slice of the $1 trillion-plus global medicine market.
LONDON (Reuters Breakingviews) - In Lake Wobegon, the fictional setting for Garrison Keillor’s “Prairie Home Companion”, all the children are famously above average. Such illogic is embraced by active asset managers, all of whom peddle the idea that they can consistently beat the market mean. The growth of lower-cost passive funds has exposed the flaws in that thinking – and lent new urgency to the search for cost savings.
HONG KONG (Reuters Breakingviews) - Artificial intelligence is the backseat driver of SoftBank’s move on Uber. Masayoshi Son’s tech and telecoms group is close to investing $10 billion in the U.S. ride-hailing giant, the Wall Street Journal says. That reflects the Japanese maverick’s belief in the disruptive power of self-driving cars.
NEW YORK (Reuters Breakingviews) - Bridgewater’s founder thinks his kindred spirit resides in China’s anti-corruption czar Wang Qishan. Both seek radical transparency – though Dalio’s hunt is tied to forging a business in the Middle Kingdom. Plus: Exxon’s salvation may lie in the oil fields of West Texas.
NEW YORK (Reuters Breakingviews) - The National Rifle Association isn't known for the subtlety of its messaging. But in recent months, the leading shill for America's gun industry is sounding shriller than ever. That’s despite unprecedented support from Donald Trump, the first U.S. president to speak at its annual meeting in a generation. "You came through for me, and I am going to come through for you," the commander-in-chief told the NRA's top brass and members in Atlanta in April. "The eight-
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