Recent Posts

Germany should scrap its balanced-budget law

It’s not often these days that Germany’s Social Democrats have good economic ideas. But a forthcoming initiative by one of them makes eminent sense, and deserves more support than it’s likely to get. Olaf Scholz, the finance minister, wants to suspend the country’s so-called “debt brake,” a constitutional limit on public deficits and borrowing. But the SPD’s senior partners in ...

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Markets are off so it must be time for a jumbo LBO

With impeccable timing, the private equity industry has agreed a jumbo leveraged buyout (LBO) just as markets have turned dramatically. It’s a bad look, and Advent International and Cinven will have to strain every sinew to make their 17 billion-euro ($19 billion) deal for Thyssenkrupp AG’s elevator business pay off. Germany’s Thyssenkrupp is a distressed seller but the industrial conglomerate ...

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Lenovo has one number that deserves scrutiny

Concerns over Lenovo Group Ltd.’s financial outlook have brought new scrutiny to the Chinese maker of computers, servers and smartphones. Its stock dropped 5.7% on February 26 in Hong Kong, the fourth straight decline, after a tweet from short-seller Muddy Waters referenced a recent report by Bucephalus Research Partners Ltd. That piece highlighted a series of issues it had with ...

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