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from The Great Debate:

Why work with India’s new leader? It’s the economy, stupid

India's Prime Minister Modi gestures while speaking at Madison Square Garden in New York

Great powers sneak up on you.  While Washington has been preoccupied with a burning Middle East, Russia behaving badly and, to a lesser extent, the rise of China, U.S. relations with India have slipped down the diplomatic priority list. In coming decades, however, enormous, unwieldy India will likely be the United States’ most important continental partner in Asia.

On Sunday, 19,000 spectators were enthralled at a rock-star-like rally for India’s new prime minister, Narendra Modi, in Madison Square Garden in New York.  Additional screens were set up in Times Square.  The Rolling Stones and U2 do not command a similar reception. Responding to chants of “Modi, Modi, Modi,” the prime minister promised to “form the India of [his fans’] dreams.”

Modi, a Hindu nationalist who successfully brought economic growth to his home state of Gujarat, was elected by a landslide in May. His first state visit to the United States this week signified to Indians around the world that their country is back, front and center, on the world stage. After a frustrating few years of economic slowdown and gridlock in Delhi, they can be proud to be Indian again. Their hopes are now pinned on their new prime minister and his team.

Let’s hope that India is back on the U.S. priority list as well.

India's Prime Minster Modi appears on screen as he speaks on stage during the Global Citizen Festival concert in Central Park in New YorkWhy does India matter? First, it is enormous and growing. Just 16 years from now, many experts believe, India will likely have inched past China to become the world’s most populous country, with 1.5 billion people. By 2030, China will likely be the world’s largest economy by purchasing-power parity, with the United States second and India third.

from Breakingviews:

Court order adds urgency to India’s coal crunch

By Andy Mukherjee

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

India’s Supreme Court has added urgency to the country’s coal crunch. That may force the government to take steps to end the debilitating shortage which is holding back a much-needed manufacturing revival.

from Breakingviews:

Stanford’s snub to coal typical of Silicon Valley

By Christopher Swann

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

Stanford’s snub to coal is typical of Silicon Valley. The black rock is an easy target for the university’s $18.7 billion endowment, which is bigger than the top five U.S. coal firms combined. But shouldn’t the principle behind it, reversing global warming, also apply to oil companies, including Stanford donor Chevron? Like Valley tech tycoons, the Palo Alto school seems to shun some evils only so far.

from The Great Debate:

The nuclear option for emerging markets

Last year, greenhouse gas emissions reached a record high of 39 billion tons. Emissions actually dropped in the United States and Europe, but substantial increases in China and India more than erased this bit of good news.

That is all the more reason to focus on innovative solutions that slow the growth in emissions from emerging markets.

from Breakingviews:

Smog obscures looming water risk for China

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

China’s smog is visible, and vexes the urban rich. But attempts to fix the looming “airpocalypse” may be exacerbating another acute risk: water. If the country’s planners really want to make growth sustainable, they will need to pull the plug on cheap supply for thirsty energy companies and consumers.

from Unstructured Finance:

Jim Chanos, bad news bear, urges market prudence

Prominent short-seller Jim Chanos is probably one of the last true “bad news bears” you will find on Wall Street these days, save for Jim Grant and Nouriel Roubini. Almost everywhere you turn, money managers still are bullish on U.S. equities going into 2014 even after the Standard & Poor’s 500’s 27 percent returns year-to-date and the Nasdaq is back to levels not seen since the height of the dot-com bubble in 1999.

“We’re back to a glass half-full environment as opposed to a glass half-empty environment,” Chanos told Reuters during a wide ranging hour-long discussion two weeks ago. “If you're the typical investor, it's probably time to be a little bit more cautious.”

from Unstructured Finance:

Hedge fund manager Hempton on Herbalife

John Hempton is bullish on Herbalife but bearish on coal

By Jennifer Ablan and Matthew Goldstein

Hedge fund manager and frequent blogger John Hempton is a little bit like the Jim Chanos of Australia.

Over the years, he’s been a fairly prescient short seller. For instance he was an early skeptic on computer giant Hewlett Packard and travel services company Universal Travel Group, which recently agreed to pay nearly $1 billion to settle a U.S. Securities and Exchange Commission lawsuit alleging that the company defrauded investors by failing to disclose the transfer of $41 million from stock offerings to unknown parties in China.

from Lipper Columns:

CTRL:ALT:INVEST: Don’t give up on solar energy yet!

Bill Lese, managing partner at VC firm Braemar Energy says there's still growth potential in the solar sector, and also likes early-stage investments in shale, coal and hydrocarbons.

Related links:

from The Great Debate:

The darkness behind fracking’s silver lining

A natural gas pipeline under construction near East Smithfield in Bradford County, Pennsylvania, Jan. 7, 2012. REUTERS/Les Stone

Climate change may have reached the point of no return last month.

CO2 levels in the atmosphere topped 400 parts per million on May 19, for the first time since the Pleistocene era, over 2.5 million years ago. President Barack Obama's historic speech on climate change today highlights his growing focus on this issue for his second term.

from Global Investing:

India’s deficit — not just about oil and gold

India's finance minister P Chidambaram can be forgiven for feeling cheerful. After all, prices for oil and gold, the two biggest constituents of his country's import bill, have tumbled sharply this week. If sustained, these developments might significantly ease India's current account deficit headache -- possibly to the tune of $20 billion a year.

Chidambaram said yesterday he expects the deficit to halve in a year or two from last year's 5 percent level. Markets are celebrating too -- the Indian rupee, stocks and bonds have all rallied this week.

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