Breakingviews
Breakingviews - Spotify’s business model is an unfinished symphony
LONDON (Reuters Breakingviews) - Spotify’s business model is an unfinished symphony. The digital-streaming service is closer to listing on the New York Stock Exchange now that it has secured licensing deals with all three major musical labels, including Warner Music, which signed up on Thursday. But with the likes of Universal and Sony reportedly budging only slightly on royalties, Spotify’s ability to turn a decent profit is still in doubt.
Breakingviews - Samsung guilty verdict is a victory for reformers
HONG KONG (Reuters Breakingviews) - A guilty verdict for Samsung Group’s de facto leader is a victory for reformers. On Friday Jay Y. Lee, the third-generation boss of South Korea's biggest business, was sentenced to five years in jail for bribing the country’s previous president, embezzlement and other charges. Assuming the sentence is not overturned, this boosts President Moon Jae-in, who vowed to rein in powerful conglomerates. It should scare other bosses into behaving better.
Breakingviews - Infosys founders get second chance on succession
MUMBAI (Reuters Breakingviews) - Infosys' founders are getting a second chance to leave behind a company that won't crash. Nandan Nilekani will return as non-executive chairman of the $32 billion Indian information technology firm he helped found. That is less than ideal given it was supposed to have shifted to professional management. Still, his appointment in place of two co-chairman streamlines the top ranks and is a fast way to calm investors after its first outside chief executive quit.
Viewsroom: Fiat Chrysler’s painful choices
NEW YORK (Reuters Breakingviews) - Great Wall Motor wants to buy Jeep. That’d leave the Italian-American carmaker cash rich but devoid of profit in a fast-changing industry. Meanwhile, Uber tries to find a silver lining to the cloud its drivers are under. Plus: what makes China’s unicorns a different breed. Listen to the podcast: https://soundcloud.com/reuters/fiat-chryslers-painful-choices
Cox: No, wait, this is the real crisis anniversary
NEW YORK (Reuters Breakingviews) - Just five minutes before Monday’s solar eclipse, hundreds of beachgoers along the Cape Cod National Seashore were donning special glasses and positioning empty cereal boxes with pinholes in them, tittering with anticipation to see the moon begin to blot out much of the sun. As a result, they missed something far more exciting some 10 yards offshore.
Breakingviews - Dixons double whammy is surprise that wasn’t
LONDON (Reuters Breakingviews) - Dixons Carphone’s double whammy is a lesson in the dangers of misplaced confidence in forecasting. The UK electronics retailer’s shares fell 30 percent on Thursday after it said profit for the year would be much lower than anticipated. But the main culprits for the lower guidance were known risks.
Breakingviews - Samsonite luggage could travel more
HONG KONG (Reuters Breakingviews) - Samsonite would benefit from seeing a bit more of the world. On Thursday, the world's largest luggage-maker reported flat first-half earnings of $92.7 million, as it digests a big acquisition. Alone among fashion stocks, Samsonite offers a unique pure play on travel. The need is for geographical variation: for all its globe-trotting image, the $5.5 billion company looks over-dependent on American demand.
Breakingviews- Trump antics may be virus, cure for uneasy market
WASHINGTON (Reuters Breakingviews) - Donald Trump’s antics may be both a virus and a cure for uneasy financial markets. The U.S. president threatened a government shutdown over border-wall funds as the risk of an Uncle Sam debt default looms just weeks away. Yet he is angering the very lawmakers he needs on these issues. Ironically, his divisiveness could actually serve to unite the middle to resolve these economic hurdles.
Breakingviews-WPP underestimates pinch from corporate austerity
LONDON (Reuters Breakingviews) - WPP has underestimated the pinch from corporate austerity. The world’s largest ad group cut its forecast for its preferred measure of sales, blaming lower spending by consumer-goods giants it counts as clients. Boss Martin Sorrell reckons this will reverse. Alternatively, marketing frugality might become the new normal.
Tencent’s team has upper hand in Chinese food fight
HONG KONG (Reuters Breakingviews) - In a food fight between China’s three web giants, Tencent looks strongest. A food-delivery business backed by Alibaba is close to buying a Baidu-owned rival, says a person familiar with the matter. The combined firm will nonetheless struggle to unseat the Tencent-backed Meituan-Dianping, which 86Research says is now the market leader.
About Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at http://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.