India in depth: Diaspora’s yield hunt gone wrong
(The author is a Reuters Breakingviews columnist. The
opinions expressed are his own)
By Andy Mukherjee
SINGAPORE, June 18 (Reuters Breakingviews) – India’s banking
system, struggling with a sluggish economy and large loan losses
may lose the only friend it has had the past couple of years:
the diaspora. For every $1 of time deposits that Indian banks
have raised from residents in the past year, 13 cents has come
from the estimated 25 million people of Indian origin who live
in other countries. On all but a fraction that amount, the
currency risk lies with the depositor.
Market jitters could crush Japan’s inflation drive
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Skittish markets are a threat to Japan’s anti-deflation drive. The rising yen, falling stocks and lower government bond yields suggest investors once again view Japan as a safe haven. The Bank of Japan may need to be bolder to prevent their expectations from becoming self-fulfilling.
Deflation flu could leave Asia feeling very sick
By Andy Mukherjee
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Deflation is entering Asia through the back door. Producer prices are sliding across the region – falling 8.5 percent even in the Philippines, where GDP grew 7.8 percent in the first quarter. Cheaper commodities are partly to blame, but the main culprit is sluggish demand from the United States. If companies can’t make up the difference, they may struggle to repay growing debts.
Bond jitters shouldn’t delay Japan pension reform
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By reforming Japan’s public pension system, Prime Minister Shinzo Abe is taking a calculated risk. Asking state funds to buy fewer government bonds may look like an own goal at a time when the central bank is struggling to control yields. But the payoff to both the government and Japan’s fast-ageing society could be worth it.
Breakingviews – Narayana Murthy’s return shows depth of malaise at Infosys
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Andy Mukherjee
SINGAPORE (Reuters Breakingviews) – Infosys(INFY.NS: Quote, Profile, Research) is going back to the future. Co-founder N.R. Narayana Murthy is coming out of retirement to take the helm of the Indian software outsourcing company. His return is a sign of the depth of the malaise at the former poster child of the industry.
Founder’s return shows depth of malaise at Infosys
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Infosys is going back to the future. Co-founder N.R. Narayana Murthy is coming out of retirement to take the helm of the Indian software outsourcing company. His return is a sign of the depth of the malaise at the former poster child of the industry.
Japan bond market blues: A guide for the perplexed
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
The Bank of Japan’s money-printing plan is failing to keep borrowing costs in check. Since the central bank pledged on April 4 to double its holdings of Japanese government bonds in two years, the yield on 10-year government debt has doubled. On May 23, it briefly touched 1 percent.
Global trade surplus: proof of alien life?
By Andy Mukherjee
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Mankind has spent centuries looking for signs of alien life. Now a French graduate student appears to have found evidence in an unusual spot: the ledgers of the world’s customs offices.
Blame Japan’s debt on companies, not the state
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Japan’s government is up to its neck in debt. That, however, is not because the government has been overly profligate, but because Japanese companies have been deleveraging for a long time. If Prime Minister Shinzo Abe’s policies revive private investment, the government’s track record suggests it will tighten its belt.
Breakingviews – India in depth: A costly flirtation with “linkers”
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Andy Mukherjee
SINGAPORE (Reuters Breakingviews) – India is set to join the small but growing club of nations whose governments issue inflation-indexed debt. But evidence from the United States suggests that offering these securities in small quantities – as India currently intends to – can become an expensive fiscal hobby. A bolder commitment could reduce borrowing costs. That’s the direction in which New Delhi needs to go.
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