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Breakingviews Headlines

Breakingviews - Viewsroom: Disney, Comcast go from zero to berserk

The Magic Kingdom and the cable company are driving up the price for parts of Twenty-First Century Fox in a global M&A battle that throws financial logic out the window. But does it make sense strategically? Plus: India’s cricket league takes a few pages from the NFL playbook.

Breakingviews - Cox: Italy’s new Caesars have outdone Donald Trump

Donald Trump has many fans among the world’s great democracies. He has admirers in the parliaments of France, the Netherlands, Germany and Japan. But no government of a developed country has mimicked the U.S. president’s iconoclastic communications style, broken conventions and put forward radical economic, trade and immigration policies like the new Caesars ruling Italy.

Breakingviews - Trade war tariffs eat Daimler’s homework

Gottlieb Daimler and Carl Benz invented the modern car. Now the $75 billion German company built on that legacy seems to have invented the trade-war profit warning. The question for investors is whether Daimler’s stance is a responsible attempt to get out in front of the problem, or a “dog ate my homework” distraction from other shortcomings.

Breakingviews - Saudi index win is stepping stone not step change

Saudi Arabia’s stock market is joining the big time. Index provider MSCI on June 20 added the kingdom to its emerging markets benchmark. The elevation is well deserved, but a more important catalyst for internationalising its capital market would be listing national oil champion Aramco.

Breakingviews - India will test Xiaomi's two-pronged strategy

India will test Xiaomi's two-pronged strategy. The Chinese group is known for selling affordable smartphones but even a scaled-down valuation target for its initial public offering hangs on success in more profitable internet services such as music and video streaming. Xiaomi is rolling these offerings out in its top overseas market, but may struggle to make an impact.  

Breakingviews - Disney hurls magic and moolah to woo Murdoch

Walt Disney has hurled magic and moolah to woo the Murdochs. The Mouse House leapfrogged Comcast by raising its offer for parts of Twenty-First Century Fox to $71 billion, including a generous dollop of cash. Disney has room to go higher still. The cable firm may yet go hostile but would be better off focusing its efforts on Sky.

Breakingviews - EU’s best bet is to indulge Trump on car tariffs

Facing a possible trade tit-for-tat with U.S. President Donald Trump, the European Union has two unpalatable options: keep matching American measures, or extend a hand to defuse tensions. Offering to slash tariffs on auto imports would dent Europe’s pride, but might avert further economic damage.

Breakingviews - Market swoon undercuts Chinese consumer tale

The markets just delivered a stinging reminder about Chinese consumption. Fresh threats by President Donald Trump to apply tariffs on another $200 billion of goods from the People’s Republic sent mainland stocks reeling on Tuesday. They are now trading at their lowest in a year. Bond prices also fell and the yuan posted its sharpest single-day decline against the dollar since January 2017. Local demand has not yet decoupled from global trade.