Archive

Reuters blog archive

from Breakingviews:

Tim Cook’s pride may expand corporate talent pool

timcook.jpg

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

Tim Cook’s pride may expand the corporate talent pool. The Apple chief executive’s decision to speak publicly about being gay should help advance the slow march toward acceptance. As boss of the world’s biggest company by market value, Cook could inspire others, giving C-suites and boardrooms more choice. They need it.

For an enterprise widely known for confidentiality, Cook’s sexual orientation wasn’t exactly a secret. Cook says many of his Apple colleagues were aware. For three years, Out magazine also put him atop its list of the most powerful gay people. And he has taken clear positions against discrimination of gay and transgender people.

His first public acknowledgement of being gay, in a Bloomberg Businessweek column published on Thursday, nevertheless represents a landmark. It’s extremely rare for the CEO of any sizable company to come out. One of the last notable examples was former BP boss John Browne, who did so under pressure in 2007 and later resigned. Cook’s timing and language set a decidedly different tone: “I’m proud to be gay, and I consider being gay among the greatest gifts God has given me.”

from Breakingviews:

EU bank stress-test winners still short of capital

By George Hay

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

Investors are turning their noses up at the European bank stress tests. Shares in the sector fell 1.9 percent on average on the morning after publication, with both banks that passed and those that failed being targeted. That’s because a clean bill of health on the test’s headline terms does not necessarily mean a lender has enough capital over the medium term.

from Global Markets Forum Dashboard:

China economic reforms may result in $14.4 trillion GDP, growth at 6 percent – Asia Society report

Sweeping economic reform initiated by China President Xi Jinping in November 2013 marked a turning point for the world's second biggest economy. If implemented fully, China's potential GDP growth can be sustained at 6 percent through 2020. One risk: Falling short of that growth rate could result in growth at half that projection, or worse, leading to a new economic crisis, according to a new study.

Dan Rosen, founding partner, Rhodium Group

Dan Rosen, founding partner, Rhodium Group

Dan Rosen, author of a report for the Asia Society Policy Institute, argues that China's growth model is no longer working. The drivers that contributed to China's post-1978 growth are weakening, with existing investments showing diminished returns and overall total-factor productivity, or TFP, falling. TFP is an economic term that broadly measures efficiency using input factors such as labor and capital. "Demographic dividends propelled China through the 1980s, 1990s, and 2000s, but the labor force is now at its largest and is poised to shrink," he writes.

from Hugo Dixon:

Italy has no good Plan B

Matteo Renzi’s Plan A is to push through domestic reforms, hope the European Central Bank manages to get inflation ticking up, and keep his fingers crossed the Italian economy stops shrinking. But if this fails, a mega wealth tax, debt restructuring and/or exit from the euro beckons.

There is no Plan B that wouldn’t tip both Italy, where I spent part of last week, and its neighbours into a severe crisis. That makes it all the more important that Plan A works.

from Global Investing:

Measuring political risk in emerging markets

(Corrects to say EI Sturdza is UK investment firm, not Swiss)

Commerzbank analyst Simon Quijano-Evans recently analysed credit ratings for emerging market countries and concluded that there is a strong tendency to "under-rate" emerging economies - that is they are generally rated lower than developed market "equals" that have similar profiles of debt, investment or reform. The reason, according to Quijano-Evans, is that ratings assessments tend to be "blurred by political risk which is difficult to quantify and is usually higher in the developing world compared with richer peers.

However there are some efforts to measure political risks, and unfortunately for emerging economies, some of those metrics seem to indicate that such risk is on the rise. Risk consultancy Maplecroft which compiles a civil unrest index (CUI), says street protests, ethnic violence and labour unrest are factors that have increased chances of business disruption in emerging markets by 20 percent over the past three months. Such unrest as in Hong Kong recently, can be sudden, causing headaches for business and denting economic growth, Maplecroft says. Hong Kong where mass pro-democracy protests in the city-state's central business district which shuttered big banks and triggered a 7 percent stock market plunge last month.

from Breakingviews:

Occupy misses real threats to Hong Kong’s future

By Robyn Mak

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

Hong Kong’s pro-democracy movement misses the real threats to Hong Kong’s future. While tens of thousands of protesters led by students have taken to the streets demanding electoral reform, most of the former British colony's 7.2 million residents have shied away. Universal suffrage deserves public support, but the gradual erosion of rule of law and free speech poses a greater threat to the city's prosperity. It’s unlikely these concerns can unite the region in open confrontation with Beijing.

from Jack Shafer:

All in all, Eric Holder was just another brick in the wall

U.S.  Attorney General Holder stands with President Obama after the president announced Holder's resignation at the White House in Washington

Attorney General Eric H. Holder Jr. first signaled his exit from office so long ago that every reporter and pundit who covers the Department of Justice has stockpiled enough copy assessing his tenure to fill a mattress. Like Derek Jeter, Holder announced his farewell tour this past February, telling the New Yorker's Jeffrey Toobin that he would depart in 2014. The admission prompted journalists to update and fine tune their critiques of the attorney general with emerging details, the way obituary writers tweak their pre-written obituaries of famous, old people to keep them fresh and newsy.

To paraphrase Marcus Raskin, the law is just politics frozen in time. Every attorney general applies the heat gun to the solid mass of law in hopes of melting and refreezing it to serve his boss, be he a Republican president or a Democratic president. These efforts naturally earn them disparaging comments from the opposing party, giving reporters the opportunity to plug in modular language like this passage from today's New York Times story about Holder's resignation: "He … emerged as the primary political antagonist for a Republican opposition in Congress that viewed him as dismissive of existing laws and contemptuous of its oversight of his department." Republicans, the Times continues, "once voted to hold Mr. Holder in contempt of Congress." Deeper in the piece: "Conservatives spent years attacking Mr. Holder’s integrity, especially over the Justice Department’s botched gun-trafficking operation called Fast and Furious."

from The Great Debate:

All in all, Eric Holder was just another brick in the wall

[CROSSPOST blog: 2341 post: 3261]

Original Post Text:
U.S.  Attorney General Holder stands with President Obama after the president announced Holder's resignation at the White House in Washington

Attorney General Eric H. Holder Jr. first signaled his exit from office so long ago that every reporter and pundit who covers the Department of Justice has stockpiled enough copy assessing his tenure to fill a mattress. Like Derek Jeter, Holder announced his farewell tour this past February, telling the New Yorker's Jeffrey Toobin that he would depart in 2014. The admission prompted journalists to update and fine tune their critiques of the attorney general with emerging details, the way obituary writers tweak their pre-written obituaries of famous, old people to keep them fresh and newsy.

To paraphrase Marcus Raskin, the law is just politics frozen in time. Every attorney general applies the heat gun to the solid mass of law in hopes of melting and refreezing it to serve his boss, be he a Republican president or a Democratic president. These efforts naturally earn them disparaging comments from the opposing party, giving reporters the opportunity to plug in modular language like this passage from today's New York Times story about Holder's resignation: "He … emerged as the primary political antagonist for a Republican opposition in Congress that viewed him as dismissive of existing laws and contemptuous of its oversight of his department." Republicans, the Times continues, "once voted to hold Mr. Holder in contempt of Congress." Deeper in the piece: "Conservatives spent years attacking Mr. Holder’s integrity, especially over the Justice Department’s botched gun-trafficking operation called Fast and Furious."

from Hugo Dixon:

Now on to the Brexit referendum

By Hugo Dixon

Hugo Dixon is Editor-at-Large, Reuters News. The opinions expressed are his own.

With Scotland voting to stay part of the United Kingdom, attention will turn to the next potential British referendum: on whether the country will remain in the European Union. David Cameron has promised to hold an In/Out referendum on the EU if he is re-elected as prime minister in next year’s general election. There are comparisons and contrasts between the two votes, as well as lessons to be learned.

from Edward Hadas:

The economic lessons from Scotland

Adam Smith, one of the leading figures of the 18th century Scottish intellectual enlightenment, liked free markets and restrained governments. The 21st century campaigns for and against a Scottish political liberation show that governments have acquired an economic importance which Smith could hardly have imagined.

If the government’s economic role was as limited as Smith would have liked, the debate preceding the Sept. 18 independence referendum would mostly have been about national identity and the advantages and difficulties of becoming a small country in a big world. The economy would hardly be an issue, since only the most rabid Scottish nationalist would accuse the English of cruelty in that domain.

  •