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.
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, May 21 (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.
Japan’s yield spike is no canary in the debt mine
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
The recent spike in Japan’s bond yields is not a canary in the country’s debt mine. Though the yield on 10-year government bonds has almost doubled since the Bank of Japan announced its aggressive money-printing pledge on April 4, it’s still less than 0.9 percent. Before the 2008 financial crisis, yields were twice as high.
Abenomics pulls Japan from its post-Lehman slump
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Prime Minister Shinzo Abe’s policies have beaten back the Japanese economy’s post-Lehman blues. Breakingviews’ Abenomics Index was at its highest level in March since September 2008. And that was before the Bank of Japan launched its bold money-printing pledge.
Polls give strife-hit Pakistan a shot at stability
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
Pakistan’s election may just give the troubled country a shot at stability. Investors will discount much of the hyperbole from political parties about the economic possibilities ahead. The question is whether the poll – the first proper democratic transfer of power in Pakistan’s history – can provide stable, effective leadership that keeps the army out of politics while uniting the country in dealing with Taliban-sponsored sectarian violence.
Three-digit yen no longer a one-way bet
By Andy Mukherjee
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The yen is no longer a one-way bet. The Japanese currency has slumped to 100 against the dollar for the first time in four years. That’s a 16 percent slide since Shinzo Abe’s landslide election victory in December. At the time, Breakingviews predicted his victory would herald a three-digit yen. But there are good reasons to be sceptical about a further decline.
Breakingviews – India’s bickering lawmakers test investors’ faith
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Andy Mukherjee
SINGAPORE (Reuters Breakingviews) – The $12 billion foreign investors have poured into Indian equities this year is not a gift: it’s a bet that Finance Minister P. Chidambaram will keep his promise to lift the country’s GDP growth from its 10-year low. But the government can’t deliver without lawmakers doing their part. The problem is that parliament, never a bastion of efficiency, has simply stopped working.
India’s bickering lawmakers test investors’ faith
By Andy Mukherjee
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
The $12 billion foreign investors have poured into Indian equities this year is not a gift: it’s a bet that Finance Minister Palaniappan Chidambaram will keep his promise to lift the country’s GDP growth from its 10-year low. But the government can’t deliver without lawmakers doing their part. The problem is that India’s national parliament, never a bastion of efficiency, has simply stopped working.
India’s bickering lawmakers test investors’ faith
By Andy Mukherjee
SINGAPORE, May 9 (Reuters Breakingviews) – A net $12 billion
of foreign cash has poured into Indian stocks this year on the
hope the government will keep its pledge to revive growth. But
lawmakers refused to pass key economic bills. The legislative
impasse, which will worsen as polls draw nearer, could prompt a
reversal.
Full view will be published shortly.
CONTEXT NEWS
- Both houses of India’s national parliament were adjourned
on May 8, ending a three-month-long session that was frequently
disrupted by the opposition parties demanding Prime Minister
Manmohan Singh’s resignation over allegation of irregularities
in allocation of coal-mining blocks and telecommunications
spectrum.
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