NEW YORK (Reuters Breakingviews) - Investors are betting the fake-news swamp is left undrained. U.S. lawmakers on Tuesday grilled executives from Facebook, YouTube and Twitter about how they filter an ocean of content. Both the politicians’ questions and the company’s answers made any plausible bias-free approach seem remote. And the companies’ rising stocks suggest confidence that no serious regulation will follow.
LONDON (Reuters Breakingviews) - Symbolism can sometimes be overwhelmed by sheer financial power. That is the unfortunate fate of the trade deal the European Union and Japan signed on Tuesday. The accord between countries which account for nearly a third of the world’s GDP will create the world’s largest open economic area. It’s also a welcome reminder that trade barriers can fall as well as rise. But the benefits are dwarfed by the damage U.S. President Donald Trump could inflict with more tari
HONG KONG (Reuters Breakingviews) - Pinduoduo has a long last mile ahead of it. The unprofitable Chinese shopping app wants a valuation of some $20 billion in its upcoming initial public offering in New York. Sales are surging, but its social-networking e-commerce business model targeting consumers in far-flung areas of the People’s Republic could befuddle overseas investors.
NEW YORK (Reuters Breakingviews) - Netflix's growth stumble is a small gift to rivals. The streaming-video service attracted fewer subscribers than forecast in the second quarter, knocking more than $20 billion off its value. That will comfort Walt Disney and Comcast as they wage a costly battle for parts of Twenty-First Century Fox and Sky. Yet even a more sluggish Netflix remains far ahead in the race.
ASPEN, Colo. (Reuters Breakingviews) - Goldman Sachs is playing follow-someone-else’s leader. The $87 billion Wall Street firm is expected to announce early this week a career investment banker as its next chief executive. David Solomon comes from the side of Goldman that advises clients rather than the bit that trades securities and produced current chief Lloyd Blankfein. It further de-emphasizes the role that part of the business plays. It’s also something Morgan Stanley did almost a decade ag
NEW YORK (Reuters Breakingviews) - Elon Musk has put the board of Tesla on the spot. The $52 billion electric-car maker’s chief executive on Sunday sent a tweet suggesting, without evidence, that one of the men involved in rescuing 12 Thai boys and their soccer coach from flooded caves was a pedophile. Such a gratuitous and potentially libelous act deserves punishment. The trouble is, Tesla’s directors may be reluctant to mete it out.
LONDON (Reuters Breakingviews) - Three cheers for Deutsche Bank! The embattled German lender on Monday produced a rare positive surprise: second-quarter results weren’t quite as atrocious as analysts had feared. The fact that boss Christian Sewing pushed through deeper cost cuts without revenue plummeting suggests Germany’s largest lender has reached a nadir. However, despite an 8 percent jump in Deutsche’s share price, investors shouldn’t get too excited: a slump in trading revenue augurs plent
HONG KONG (Reuters Breakingviews) - One of the most boring numbers in economics just got interesting again. Chinese output grew at 6.7 percent in the second quarter, down a tick from earlier this year. The number has been uncannily, and implausibly, steady, making it all too easy for international investors to shrug off. A trade war and debt management campaigns mean they should start paying closer attention.
NEW YORK (Reuters Breakingviews) - The big American banks get ever bigger, more profitable and more cozy. JPMorgan set the tone on Friday with a record $8.3 billion of earnings for the three months ending June 30. Return on equity at Jamie Dimon’s $363 billion colossus was a roomy 14 percent. Citigroup followed with $4.5 billion of earnings for the quarter, comfortably above consensus forecasts. Yet the largest lenders' price-to-earnings multiples have fallen this year even as forecasts of their
WASHINGTON (Reuters Breakingviews) - AT&T has unintentionally thrown a bone to the U.S. antitrust watchdog. The Justice Department faces high hurdles in appealing a harsh ruling that cleared the telecom group’s $85 billion purchase of Time Warner. But AT&T may be a little too complacent: it raised some customer prices.
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