LONDON (Reuters Breakingviews) - Italy’s deadly bridge disaster will shape the country’s infrastructure fix for better or worse. Shares in toll-road operator Atlantia have fallen as much as 30 percent since the Genoa viaduct collapsed on Tuesday. The tragedy reinforces the case for more investment. But the costs will depend on the government’s treatment of Benetton family-controlled group.
HONG KONG (Reuters Breakingviews) - President Donald Trump may not like Jeff Bezos, but his Department of Defense gets along great with Amazon. Consultants associated with the $927 billion Seattle juggernaut occupied top positions at the Pentagon ahead of the rollout of a massive cloud contract worth some $10 billion that Amazon looks poised to snag. Rivals complain the requirements were written to favor Bezos’s company. Either way, investors should be prepared for its government business to att
NEW YORK (Reuters Breakingviews) - The wedding-industrial complex tries to convince couples to celebrate their nuptials every year with a traditional gift. The quality of each present increases with longevity. In year one it’s just paper for the spouse. After 50 it’s glittering gold, and so on. The same could be said for commemorating financial crises: The further away from the anniversary, the more valuable the lesson to be learned.
HONG KONG (Reuters Breakingviews) - Beijing's sovereign wealth fund could do without the fried chicken. China Investment Corporation may join a bid to take private Yum China, the $14 billion operator of KFC, Pizza Hut and Taco Bell outlets in the People’s Republic, Bloomberg reports. A takeout has merits, but is also a risky distraction for the $940 billion giant. Its mission is to invest the country’s vast foreign exchange holdings abroad – not to dabble in complicated buyouts at home.
LONDON (Reuters Breakingviews) - Saudi Arabia’s Crown Prince Mohammed bin Salman risks picking the wrong driver. The kingdom’s sovereign wealth fund already holds nearly 5 percent of Tesla and expressed interest in taking the electric-vehicle innovator private, according to boss Elon Musk. That’d be a dicey way to diversify away from oil.
LONDON (Reuters Breakingviews) - Turkey’s currency crisis was easy to predict. What is more surprising is how weak the global response has been. The old world financial order is badly missed.
HONG KONG (Reuters Breakingviews) - China’s stealth support for housing is looking wobbly. Officials are tweaking a $470 billion program through which the People’s Bank of China effectively provides lenders with cheap loans to upgrade housing in smaller cities. Even a small change to the scheme could cause real estate and stock markets to shudder.
NEW YORK (Reuters Breakingviews) - Elon Musk has revealed a bit about his mooted buyout of Tesla, and a lot about himself. On Monday he explained why he thinks a $59 billion take-private deal is doable, and claimed that the Saudis want to finance it. But the way he has handled disclosures confirms how ill-suited he is for his public role.
HONG KONG (Reuters Breakingviews) - Beijing’s ownership is no longer reliable investor insurance. China Huarong Asset Management said on Sunday that its first-half earnings would fall sharply, the latest stumble in an acute crisis triggered by its chairman’s fall from grace. The government, its top stakeholder, seems content to watch the stock collapse. State backing, it seems, now comes with even more fine print.
LONDON (Reuters Breakingviews) - After digging itself into a crisis, Turkey will probably find the worst way out. The lira’s alarming slide is fanning concern that the country will struggle to meet external financing needs. President Tayyip Erdogan may soon have to choose between imposing capital controls and seeking help from the International Monetary Fund. Defiant self-sufficiency is more his style.
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