United States of America

Ethical economy: Welcome the U.S. relative decline

10 Oct 2012

Whoever wins the presidential election will preside over a relative decline in America’s global economic position. It’s tragic but it is inevitable. A wise leader will adapt to the lesser standing and protect the valuable relics of past glory. Pity neither candidate looks wise.

Romney’s foreign policy doesn’t seem so austere

9 Oct 2012

The Republican indicates a George W. Bush-like interventionist approach, another step away from the party’s pre-World War Two isolationism. That could lead to more Middle East conflict and defense spending, eating savings from thriftier budgets. It’s also just as risky as Obama’s stance.

Uncle Sam lands well-timed Nobel Prize cameo role

9 Oct 2012

This year’s physics award went to a pair of quantum particle researchers who cast light on sub-atomic flip-flopping, which applies in a sense to the U.S. election. More seriously, with spending under scrutiny it’s notable that one of the winners works in a federally funded lab.

Anti-accretive seller can also hold key to value

9 Oct 2012

The market reckons Spectrum Brands got the better end of a $1.4 bln deal for Stanley Black & Decker’s locks unit. True, it boosts the buyer’s earnings - accretive, to use the lingo. But such M&A-derived growth often hurts later. Stanley deserves credit for longer-term thinking.

Where will the secession fashion spread to next?

9 Oct 2012

With independence movements heating up in Catalonia, Quebec, Venice and Scotland, split-watchers should turn their attention to Texas, where secession stirred after Barack Obama’s election. The economy could prosper alone, but U.S. traditions don’t allow an easy way out.

Wal-Mart’s banking twist curls through many cracks

8 Oct 2012

The retailer’s new venture with American Express looks a good option for poorer Americans lacking access to financial services. The card also may tempt bank customers with a model that’s neither credit nor typical debit. But with deposits uninsured, regulators must watch closely.

UnitedHealth takes risky $4.9 bln crack at Brazil

8 Oct 2012

The U.S. health insurer is paying around 40 times earnings for Brazilian market leader Amil Participações. UnitedHealth has grown fat on the American healthcare system. But when regulations are “100 percent different” there’s a danger the results will be too.

Mexico’s $10 bln cement giant lightens its load

8 Oct 2012

Though expansion weighed Cemex down with debt and losses, the U.S. housing recovery, eager bond buyers and a planned Colombia IPO are now paving the road to recovery. The investment thesis, however, is less than concrete. Cemex is richly valued and dividends still look distant.

China’s telco suppliers can’t escape spying row

8 Oct 2012

American lawmakers warn that Huawei and ZTE pose a threat to U.S. national security because they are too close to the Chinese state. Such accusations are almost impossible for the targets to contradict. Unless relations improve, the playing field will remain tilted against them.

U.S. jobless dip boosts Obama, but probably a blip

5 Oct 2012

The unemployment rate dropped to 7.8 pct in September, a headline that helped the president’s odds of re-election regain half the ground lost in this week’s debate. But the reality is more of the same - a steady but uninspiring recovery. Jobs will be on the agenda for years.

UK should foster not fear BAE-EADS tie-up

5 Oct 2012

Former Chancellor Alistair Darling says UK interests may suffer if France and Germany held sway over the defence merger. Britain certainly needs safeguards to protect national security. But these can be found. And the alternative - no deal - wouldn’t be in the national interest.

Navy vessel caught in hedge fund Argie-bargie

4 Oct 2012

Elliott Capital has seized an Argentine tall ship. It’s the latest twist in a decade-long legal saga to pry a better deal from the country on its defaulted bonds. Argentina screams extortion and wants U.N. support. But Elliott’s move is a win of sorts for creditor rights.

Nixed Chinese wind-farm builder deserves answers

4 Oct 2012

Ralls sued Barack Obama after he took the rare step of blocking its project. Security may be a real concern, but with a costly investment at stake, the veto rationale should be explained clearly. Even if China wouldn’t reciprocate, due process still matters in America.

Californians missing a trick on Proposition 31

4 Oct 2012

Other initiatives on the state’s Nov. 6 ballot - Prop. 30, which raises taxes, and Prop. 32, involving political contributions - have grabbed more attention. But the rambling no. 31 could actually improve government. Suburb-dwellers fearful of city control shouldn’t fret, either.

New U.S. stress test needed: higher interest rates

4 Oct 2012

Don’t fight the Fed, the saying goes. The central bank is promising ultra-low rates into 2015. Yet the buildup of low-yielding debt on financial firms’ balance sheets means they may suffer badly if rates jump. The Fed aside, prudent bosses need to avoid fights with history, too.

HP’s services turnaround running low on ink

3 Oct 2012

The $29 bln tech company’s PC and imaging businesses are in decline. Investors had counted on IT services to print better numbers, à la IBM, while HP tries to fix the rest of itself. That’s not happening, for now at least. Boss Meg Whitman’s task just got even tougher.

Oil industry steals page from pharma M&A playbook

3 Oct 2012

Honeywell’s purchase of Thomas Russell was the ninth oil services deal in as many days. Scavenging the deep sea and icy climes requires exploration DNA. Specialized technology is becoming to energy giants what biotech is to the drugs sector. Smaller firms are in big demand.

Nine answers that should win the White House

3 Oct 2012

President Barack Obama and Mitt Romney need to explain how they would fix the U.S. economy when the first of their debates kicks off on Wednesday evening. Breakingviews concocts the nine answers we’d love to hear.

T-Mob-MetroPCS won’t end US telco quest for scale

3 Oct 2012

Scale brings better returns for mobile providers. But a combined T-Mobile-MetroPCS will still lack the wherewithal to compete against giants AT&T and Verizon. That means the new company as well as the likes of Leap Wireless have little choice but to dial up more deal-making.

Deutsche Telekom brightens stateside status quo

3 Oct 2012

Combining DT’s T-Mobile USA with smaller operator MetroPCS is hardly the big bang solution that a sale to AT&T once promised. But adding Metro would bolster T-Mobile’s weak market position, adding customers and spectrum. Cost savings and a stock listing would help too.