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from Breakingviews:

Tragedy may reshape Brazil economy, not just vote

By Martin Hutchinson and Richard Beales

The authors are Breakingviews columnists. All opinions expressed are their own. 

Add Marina Silva to the challenges facing Dilma Rousseff. Brazil’s president faces a new opposition candidate in October’s election after Eduardo Campos’ death in a plane crash, and Silva looks a far bigger threat. If she ousts Rousseff, which polls show is possible, Brazil could gain economically from less state meddling.

Silva was environment minister under President Luiz Inacio Lula da Silva (no relation) and ran for president on the Green Party ticket in 2010. She looked set to become the Socialist Party’s official candidate for this year’s race on Wednesday. Even before that, a poll on Monday pegged her support at 21 percent, far more than Campos had been achieving.

The poll showed Silva edging out centrist Social Democracy Party candidate Aecio Neves with 20 percent, and that result would force a second-round runoff with Rousseff at 36 percent – which the survey suggested Silva could win. It is early days and Neves has grabbed attention as the financial market favorite, but the scenario makes Silva’s economic ideas suddenly relevant.

from Breakingviews:

Dynegy’s $6.25 bln grab marks return of ambition

By Christopher Swann

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

Dynegy only got out of bankruptcy two years ago. Now two deals worth $6.25 billion, announced on Friday, mark a return of ambition for the U.S. power company. It once tried to buy Enron and eventually went bust after a spat involving activist Carl Icahn. The purchases look sensible, but the lesson from Dynegy’s past is to avoid getting carried away.

from Global Markets Forum Dashboard:

U.S. shale revolution continues to upend geopolitics

Dominick Chirichella, president, Energy Management Institute

Dominick Chirichella, president, Energy Management Institute

Oil traders who bet on rising prices were hit with a double whammy on Tuesday in the way of announcements from the top two energy data agencies. The still-nascent U.S. shale energy revolution is upending eons-old geopolitical events and it still seems to be in the early days.

Global energy watchdog the International Energy Agency revised lower its outlook for oil demand this year back to 2012 levels as the U.S. Energy Information Administration (EIA) said July U.S. oil production rose to its highest in more than a quarter century.

from Breakingviews:

REITs and MLPs make tax inversions a diversion

By Christopher Swann

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

A couple of U.S. home-grown tax breaks are making M&A inversions look like a diversion. American authorities are letting Windstream designate its telecom cables as real estate, qualifying them for tax breaks. And a partnership will shield assets of energy firm Hess from the Internal Revenue Service. Politicians, though, are indignant over firms that move overseas – even when home-grown tax loopholes are costlier.

from Breakingviews:

Argentine opportunity cost is reason to cut deal

By Martin Hutchinson

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

Argentina’s debt negotiators need to think about opportunity cost. A failure to reach agreement with holdout creditors by Wednesday might not make things immediately worse. But it would set back recent efforts to curry favor with international financiers – efforts that could pay off richly for the Argentine economy.

from MacroScope:

EU on Russia sanctions: slowly, slowly

Ukraine's President Poroshenko and Dutch ambassador to Ukraine Klompenhouwer commemorate victims of Malaysia Airlines Flight MH17 outside the Dutch embassy in Kiev

EU foreign ministers meet to decide how precisely to deploy sanctions agreed 10 days ago to hit Russian companies that help destabilise Ukraine and to block new loans to Russia through two multilateral lenders.

The EU foreign ministers are tasked with preparing a first list of people and entities from Russia that would be targeted. The number of individuals and companies to be penalized is up for grabs so there is scope to adopt a tougher posture.

from The Great Debate:

Want energy independence? Keep the nuclear option and limit exports

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Whether or not you follow the energy markets, it’s very likely you’ve heard the phrase “U.S. energy independence" at one time or another in recent years. Yet the very notion that the United States can be completely self-sufficient when it comes to supplying our domestic need for energy consumption is seriously flawed for a number of reasons ranging from population growth, pure economics, a lack of public policy and a dated permitting process vital to commercialize new energy projects. Collectively, this should have Americans questioning whether U.S. power production can be enough to completely eliminate the need for foreign energy sources.

[poll id="2"]The biggest use for energy is electricity. Using 2013 data from the Energy Information Administration (EIA), in order to produce electricity in the United States, we used a total of 4,058,209 thousand megawatt-hours last year of which 39 percent was supplied from coal, 27 percent from natural gas, 19 percent came from nuclear, 7 percent from hydropower, 6 percent from other renewables, 1 percent from petroleum and less than 1 percent from other gases. So, despite the Obama administration’s efforts to help fight carbon emissions, coal still dominates in the United States. In fact, according to a recent EIA Short-Term Energy Outlook (STEO), the allure of cheaper coal has actually fostered its greater use to offset an increase in natural gas prices.

from Breakingviews:

Iraq troubles are unlikely to bring new oil crisis

By Fiona Maharg-Bravo

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

The continued violence in Iraq looks like a harbinger of a sharp cutback from the world’s seventh-largest oil producer. But the bulk of Iraq’s production is still secure. Even though the Middle East has clearly become less stable, it will still take a cascade of problems to create a big oil price shock.

from Breakingviews:

GE scores a Pyrrhic victory in France

By Quentin Webb

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

There’s a paradox in General Electric’s French triumph. The U.S. conglomerate is finally getting Alstom’s energy businesses, having seen off German nemesis Siemens and reached an accommodation with a hostile French government. Yet some other players won clearer victories.

from Breakingviews:

Review: China gives Africa handy investment lesson

By Stephanie Rogan

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

In the last decade nearly a million Chinese citizens have taken up residence in Africa. In his vivid new book, “China’s Second Continent,” Howard French tells stories of these migrants and the Africans whose lives they affect. The book weaves anecdotes and interviews with historical and geopolitical background to tell a larger tale of the PRC’s economic engagement in the continent. The result is an unflattering portrait of China’s involvement.

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