Agnes's Feed
May 31, 2013
via Breakingviews

Fed generates the wealth, but where’s the effect?

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By Agnes T. Crane

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

The so-called wealth effect looks overrated. Americans’ private worth grew twice as fast as the U.S. economy last year, according to the Boston Consulting Group, due largely to the rise in stocks and other financial assets. But consumers aren’t rushing to spend their gains.

May 30, 2013
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GE Capital chief exit puts spotlight on Immelt

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By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

The exit of GE Capital’s chief shifts the spotlight onto his boss, Jeffrey Immelt. Michael Neal, who has led General Electric’s erstwhile high-flying lending unit for eight years, may be soon handing the helm to someone else, according to the Wall Street Journal. His departure raises the question of who will eventually replace the conglomerate’s top dog.

May 28, 2013
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Rumors of credit bubble only partially exaggerated

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By Agnes T. Crane and Neil Unmack
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Rumors of a credit bubble are only partially exaggerated. Tell-tale signs of a boom seem to be everywhere. Yet, most investors aren’t panicked. Who’s right? Breakingviews offers a bubble-meter for the credit market.

May 21, 2013
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Pyrrhic victory for Dimon is defeat for governance

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By Agnes T. Crane and Antony Currie
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The Pyrrhic victory Tuesday for Jamie Dimon is a defeat for governance. Just over two-thirds of JPMorgan shareholders voted to keep him as both chairman and chief executive at the bank’s annual meeting in Tampa on Tuesday. And Dimon and the board had to devote a considerable amount of time to preserving his titles rather than running America’s largest bank by assets. The episode perfectly illustrates the common sense behind separating the two roles.

May 7, 2013

BofA’s MBIA settlement more than pays for itself

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)

By Agnes T. Crane

NEW YORK, May 7 (Reuters Breakingviews) – Bank of America’s
(BAC.N: Quote, Profile, Research) legal settlement with bond insurer MBIA pays for itself,
and then some. Agreeing to resolve disputes over losses from old
toxic sludge cheered shareholders on both sides. The bank led by
Brian Moynihan is forking out $1.7 billion, but added $6.9
billion of market value on Monday. MBIA scored nearly $900
million of extra equity on top of BofA’s check. Leaving the
crisis behind can still yield dividends.

Apr 26, 2013

Breakingviews-Apple iOUs may need to be as desirable as iPhones

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)

By Agnes T. Crane

NEW YORK, April 26 (Reuters Breakingviews) – Apple (AAPL.O: Quote, Profile, Research)
may need to make its iOUs as desirable as iPhones. Right now,
money managers are gaga for the company’s bonds even before they
have made their market debut. But the scale of issuance that
could come from the tech giant is on a par with huge borrowers
like banks. To be sustainable, that would call for some of
Apple’s magic.

Apr 16, 2013
via Breakingviews

Exchange-traded funds add to gold’s gyrations

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By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

 

Exchange-traded funds have added to gold’s gyrations this week. The yellow metal’s swift decline – a 13 percent sell-off over two trading days – left investors breathless. Though it is still not clear what sparked the slide on Friday and Monday, stock-like ETFs added to the selling pressure. It’s a reminder there’s a dark side to making illiquid assets easier to trade.

Apr 16, 2013

Breakingviews: Exchange-traded funds add to gold’s gyrations

(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.)

By Agnes T. Crane

NEW YORK (Reuters Breakingviews) – Exchange-traded funds have added to gold’s gyrations this week. The yellow metal’s swift decline – a 13 percent sell-off over two trading days – left investors breathless. Though it is still not clear what sparked the slide on Friday and Monday, stock-like ETFs added to the selling pressure. It’s a reminder there’s a dark side to making illiquid assets easier to trade.

Apr 3, 2013
via Breakingviews

U.S. auto sales put brakes on economy’s detractors

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By Agnes T. Crane
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

U.S. car sales are putting the brakes on the economy’s detractors. Americans are buying more vehicles thanks in part to pent-up demand and cheap loans. But the housing recovery helps, too. That and other economic data suggest consumers are looking beyond slimmer paychecks. Federal spending cuts allowing, that means the U.S. engine may be about to purr.

Mar 26, 2013

Over-eager pension funds may harm EM golden goose

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)

By Agnes T. Crane

NEW YORK, March 26 (Reuters Breakingviews) – Over-eager
pension funds may end up harming the emerging markets golden
goose. U.S. retirement managers are struggling to find decent
returns, leading many to stretch into riskier areas like
emerging markets. But a pension-fueled shift of hundreds of
billions of dollars of new cash into the asset class could prove
self-defeating and squeeze out whatever extra yield remains.