Feb 27, 2015 20:10 UTC

U.S. student loans could need $500 bln bailout

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By Daniel Indiviglio

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

U.S. student loans could one day need nearly a $500 billion bailout – perhaps the biggest government rescue yet. Borrowing for education has soared over the past decade, ballooning to $1.2 trillion and growing far faster than GDP. With the feds on the hook for much of the debt, it’s a mess in the making.

Feb 20, 2015 20:25 UTC

Time Warner Cable’s deal risk goes down to wire

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By Jeffrey Goldfarb

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

Time Warner Cable’s deal risk is going down to the wire. The $45 billion sale to larger rival Comcast has already been under consideration for nearly a year by U.S. regulators. A Federal Communications Commission preoccupied with its decision to treat the internet like a utility caused part of the delay. The agency’s decision to raise the standard for high-speed broadband also sparked fresh concern it might influence the Department of Justice’s analysis. Implied chances for success are now at 60 percent, close to the lowest in the market since the transaction was announced.

Feb 12, 2015 15:16 UTC

Yahoo’s Alibaba spinoff attracts big discount

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By Robert Cyran

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

Yahoo can’t even earn a reward for doing what shareholders wanted. The company’s plan for a tax-free spinoff of its stake in Alibaba looks logical. But a Breakingviews calculator suggests investors are attaching a 34 percent discount to the U.S. tech firm’s Alibaba shares – assuming, that is, Yahoo’s core business is worth something.

Jan 5, 2015 10:43 UTC

Centre-left may have UK election edge

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By Robert Cole

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

Britain’s three main political parties are weak. Its two nationalist groups are stronger. The probable five-way fight in the 2015 general election, due in May, will be unusual. It is also likely to produce an inconclusive result. A new Breakingviews calculator suggests, however, that a Labour-led coalition could take power.

COMMENT

The author has ticked all the boxes, but anyone familiar with the Brit mindset (particularly those of the demographic and age that have a high propensity to trek down to the polling station) knows that if house prices continue downwards between now and May, then the incumbent MP in every constituency will be toast.

Posted by Colakid | Report as abusive
Nov 12, 2014 08:24 UTC

Japan index: Tightening the purse strings

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By Katrina Hamlin

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

Unexpected growth in manufacturing output helped our alternative economic index to a new high in September. But it wasn’t enough to lift consumers: stagnant wages and higher sales taxes left spending in the doldrums. No wonder the central bank decided to ramp up bond purchases.

COMMENT

please explain how giving billions to currency traders and bankers helps the average person. Bond buy and ramping stock market actually hur people

Posted by laurel1 | Report as abusive
Oct 31, 2014 06:19 UTC

China index: Home truths upset economy

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By Katrina Hamlin

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

Our alternative growth index hit its lowest levels since April 2009 last month. Housing investment is leading the downturn with the slowest pace of growth in over two years. In the past, more bank lending was seen as the answer. This time, it doesn’t seem to be helping at all.

Oct 30, 2014 07:59 UTC

QE gave emerging markets brief gains, lasting pain

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By Andy Mukherjee

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

Six years of quantitative easing in the United States have brought fleeting gains to emerging markets, and more enduring pain.

Sep 25, 2014 05:38 UTC

Sinopec’s petrol station revamp is an uphill job

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By Ethan Bilby

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

Chinese oil giant Sinopec wants to sell more from its 23,000 pump-side stores. But as a new Breakingviews calculator shows, even a dramatic increase in non-fuel sales won’t do much to lift the $58 billion valuation that outside investors have put on the business.

Sep 18, 2014 06:36 UTC

China has not one property problem, but many

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By John Foley 

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

China’s real estate market is big enough that it can have not one property problem but many. A Breakingviews ranking of the forty biggest cities, according to different kinds of risks, shows there are huge differences between local markets. It’s not much consolation, though. A conflagration of regional problems could be just as bad as one big national one.

Aug 13, 2014 07:19 UTC

Japan’s GDP sacrifice is price well paid

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By Andy Mukherjee 

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

Japan’s GDP sacrifice is a fair price for much-needed fiscal correction.

The country’s output plunged an annualized 6.8 percent in the second quarter from the previous three months, according to the Cabinet Office’s preliminary reading. The decline, which stock market investors had expected and therefore largely ignored, was a direct consequence of the April 1 hike in Japan’s sales tax, the first since 1997. Raising the levy by 3 percentage points prompted households to curb spending by a massive 19 percent.