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Reuters blog archive

from India Insight:

Promises and more promises: India’s parties pitch their visions

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Campaign season in India means it's also promise season, and political parties aren't short on pledges for what they would do if they come to power after election results come out in May. From the Tamil Nadu-based MDMK party's pledge to rename the country "The United States of India" to the Odisha-based BJD's promise to "guarantee" development projects, there are plenty of promises floating around to help parties capture, retain or regain power.

There has been plenty of coverage of the manifestos from the biggest national parties, Congress and the Bharatiya Janata Party, so here are some highlights from the others.

Lok Satta Party: This Andhra Pradesh-based party has promised to nationalise the sale of liquor and to limit the number of stores where people can buy it. Families of liquor "victims," meanwhile, would get pensions.

BJD: In power for more than 10 years, the Biju Janata Dal of Odisha has promised to guarantee primary infrastructure needs in the state. It will also make it mandatory for industry to provide shares in projects to people whose land they buy for their projects.

from Breakingviews:

Russia would pay steep price for Ukraine invasion

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By Pierre Briançon

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

Vladimir Putin wants to destabilise Ukraine, but he may balk at the economic price Russia would pay for a full-blown invasion. The seizure of government buildings in several eastern Ukrainian cities has rekindled fears of military intervention in the mostly Russian-speaking parts of the country. A major consideration before sending in troops would be the price paid by Russia’s economy. Putin can expect to be severely punished by both markets and Western governments.

from Hugo Dixon:

Greek rebound is astonishing

Greece is undergoing an astonishing financial rebound. Two years ago, the country looked like it was set for a messy default and exit from the euro. Now it is on the verge of returning to the bond market with the issue of 2 billion euros of five-year paper.

There are still political risks, and the real economy is only now starting to turn. But the financial recovery is impressive. The 10-year bond yield, which hit 30 percent after the debt restructuring of two years ago, is now 6.2 percent.

from Hugo Dixon:

Spain’s recovery clouded by politics

Spain’s recovery is clouded by politics. Mariano Rajoy has achieved a lot in the two years that he has been prime minister. Growth has finally returned; even unemployment is falling. But as Spain enters a new electoral cycle, the appetite for reform is waning. What’s more, there is a big question mark about what will happen after the next election, which has to be held by March 2016.

Rajoy cannot claim the lion’s share of the credit for Spain’s economic turnaround. That belongs to Mario Draghi, president of the European Central Bank, whose “do whatever it takes” speech in mid-2012 marked the beginning of the end of the euro crisis.

from Global Investing:

Ukraine and the IMF: a sense of deja vu

The West has just agreed to stump up a load of cash for Ukraine but there is a distinct sense of deja vu around it all.

Let's face it - Ukraine's track record on how it manages ts economy and foreign affairs isn't great. This is the third aid programme Kiev has signed with the International Monetary Fund in a decade and two of them have failed. The IMF has its fingers crossed that this one will not go the way of the past two. Reza Moghadam, the IMF's top European official, tells Reuters in an interview:

from Breakingviews:

Official attention will make or break bitcoin

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

Official attention will make or break bitcoin. Scrutiny from tax authorities like the U.S. Internal Revenue Service and financial regulators around the world may deter off-the-grid types from using the digital money. Yet interest from investors and even creators of derivatives could start drawing bitcoin into the mainstream.

from India Insight:

Not funny – jokes Indian politicians crack

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(Any opinions expressed here are not those of Thomson Reuters)

Politicians facing outrage over their comments often say that they didn’t mean what they said to come out that way. Lately in India, they say they were joking.

One of the latest was Agriculture Minister Sharad Pawar, whose self-confessed attempt at a joke earned him the ire of the Election Commission of India just before the beginning of this year’s elections that could boot the Congress out of power. Addressing a community of labourers in Maharashtra last week, the chief of the Nationalist Congress Party urged listeners to vote twice for his party - and told them how to do it.

from Breakingviews:

UK’s political budget transfers from young to old

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By Ian Campbell

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

George Osborne claimed to have a big white rabbit up his sleeve. It turned out the UK chancellor had hidden a cuddly toy for pensioners. Osborne is running the budget for both the economy and the election.

from Breakingviews:

Smartest U.S. export to China could be Max Baucus

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

Uncle Sam's new man in China arrives just as his employer seems to have lost interest in its biggest trading partner. Max Baucus, who starts as ambassador to Beijing this month, has little experience of China and even less of diplomacy. Yet used wisely by his bosses, Baucus may be well placed to prize open new trade agreements that would leave both sides better off.

from Global Investing:

Who shivers if Russia cuts off the gas?

Markets are fretting about the prospect of western sanctions on Russia but Europeans will also suffer heavily from any retaliatory trade embargoes from Moscow which supplies roughly a third of the continent's gas needs  - 130 billion cubic metres in 2012.

After all, memories are still fresh of winter 2009 when Russia cut off gas exports through Ukraine because of Kiev's failure to pay bills on time.  ING Bank analysts have put together a table showing which countries could be hardest hit if the Kremlin indeed turns off the taps.

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