Sep 11, 2013 02:13 UTC

Apple gives finger to the skeptics

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By Robert Cyran

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

Apple has given the finger to the skeptics. That’s not obvious from the stock price, which slid 2.2 percent – knocking some $10 billion off the company’s market capitalization – after Chief Executive Tim Cook and his colleagues unveiled two new iPhone models on Tuesday. But with this round of upgrades, Apple may have just started a mobile payments revolution.

Sep 10, 2013 07:55 UTC

Suntory pays up to quench thirst for Japan escape

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By Una Galani

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

Suntory is paying up to quench its thirst for overseas growth. The newly-listed Japanese firm wants to double its sales by 2020, partly through foreign acquisitions. To help achieve that goal, it’s paying GlaxoSmithKline 1.4 billion pounds ($2.1 billion) in cash for British brands Lucozade and Ribena. That’s a big premium to reduce its exposure to a tough domestic market.

Sep 9, 2013 07:54 UTC

Japan index: Wages and consumption stymie recovery

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By Andy Mukherjee

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

Firmer prices, stronger bank lending and higher manufacturing output helped the Breakingviews Abenomics Index reverse half the previous month’s decline in July. But unless wages and spending rise, Prime Minister Shinzo Abe will struggle to win his war against deflation.

Sep 4, 2013 11:57 UTC

Commodity decoupling hints at return to old normal

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By Kevin Allison

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

Commodity markets are rediscovering a semblance of normality. After a sustained period of tight correlation, the prices of raw materials have diverged from equities. Different commodities are charting different paths too. If the trends hold, it suggests that familiar forces of supply and demand are regaining the upper hand after years of crisis-driven trading.

Sep 4, 2013 04:22 UTC

China’s bad debt could leave $500 bln equity hole

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By John Foley

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

China’s bad debts could blow a $500 billion hole in bank balance sheets. That’s roughly how much extra equity the eleven biggest lenders might need if 10 percent of their loans went sour, according to a Breakingviews calculator. Though the chairman of ICBC, China’s biggest lender, thinks dismal bank valuations are “unfair”, the malaise is well deserved.

Sep 3, 2013 21:03 UTC

Verizon puts AT&T’s acquisition willpower to test

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By Robert Cyran

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

Verizon just put AT&T’s acquisition willpower to the test. Growth in the U.S. mobile market is slowing, and as AT&T learned the hard way, competition concerns preclude any transformative domestic deals.

Sep 3, 2013 08:35 UTC

The lessons for China from Japan’s lost decade

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By Andy Mukherjee

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

Is China condemned to suffer a Japanese “lost decade”? Its economy today has three big similarities with Japan in the late 1980s: High and rising debt, diminishing export competitiveness and an ageing society. China can avoid slipping into Japan’s deflationary hole, but only if it learns from Tokyo’s failure to cleanse its banking system.

Sep 2, 2013 08:26 UTC

Emerging market currency rescue is a pipe dream

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By Andy Mukherjee

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

Can emerging markets fight back against currency speculators? An idea floated by India to mount a joint defence has a certain charm. After a rout in the rupee the past three months, New Delhi wants other developing countries to help in a coordinated intervention in offshore foreign exchange markets, Reuters reported on Aug. 31. In reality, it sounds unworkable.

Sep 1, 2013 19:55 UTC

Wall Street megadeal quest reaches end of rainbow

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By Jeffrey Goldfarb

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

After a decade-long quest, investment bankers on both sides of the Atlantic may have finally discovered the end of the rainbow. A $130 billion transaction between Vodafone and Verizon, longtime partners in U.S. wireless, would translate into a highly coveted – and given the post-crisis pace of M&A, much-needed – pot of golden fees.

Aug 30, 2013 09:59 UTC

China growth index: Good month for train-spotters

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By Katrina Hamlin

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

Breakingviews’ forward guide to China’s economy has picked up, including rail freight volumes, an important sign of domestic demand. Summer’s PMI readings also improved. But most of the alternative growth indicators remain negative. Things are far from full steam ahead.