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.

Aug 28, 2013 09:41 UTC

China’s consumers aren’t living up to sales pitch

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By John Foley

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

Consumer brands in China are finding their rewards aren’t quite as advertised. Growth in purchases of a wide range of goods has slowed sharply over the past year, and companies ranging from Samsonite to Apple are reporting disappointing Chinese sales figures. Consumers in the world’s second-largest economy will have their day, but the idea they alone can sustain growth looks threadbare.

Aug 27, 2013 09:46 UTC

China’s debt molehills could turn into mountains

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By John Foley

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

The mountains are high, and the shareholders are far away. China’s banks are reporting results that suggest their bad debts are under control and earnings healthy. But where investors don’t easily see them, risks are growing. It’s at the local level that the problems with China’s debt build-up could escalate most rapidly.

Aug 26, 2013 09:15 UTC

Asia sell-off will expose weak corporate defences

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By Peter Thal Larsen

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

Generals usually fight the last war, not the current one. Investors have a similar mindset. In Asia, a market sell-off has raised concerns about a re-run of the financial calamity of 1997-98. Though most of the region’s economies are in better shape this time, corporate leverage has risen quickly, and it looks like some companies have forgotten the lessons of history.

Aug 21, 2013 13:52 UTC

Bond yield menace intrudes on equity market party

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By Swaha Pattanaik

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

Bond yields are still low by historical standards. But they have been rising fast enough to erode the equity risk premium (ERP). That means that last week’s pattern – falling share prices and rising yields – is likely to become more common.

Aug 21, 2013 09:23 UTC

India in depth: Let rupee sink to save the economy

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By Andy Mukherjee

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

India’s failing defence of the rupee is doing more harm than good. It’s time New Delhi left the plunging currency to market forces and shifted its focus to boosting exports and investment.

Aug 20, 2013 14:24 UTC

Big miners adjust, slowly, to austere times

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By Kevin Allison

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

Glencore and BHP Billiton sit on opposite sides of the big mining camp. The former is an aggressive trader and opportunistic acquirer of resources, now greatly enlarged after the $44 billion acquisition of Xstrata in May. The latter has spent years cautiously assembling a portfolio of low-cost, large-scale mines. Financial results on Aug. 20 showed both groups girding themselves for a long, slow period for the industry.

Aug 19, 2013 13:47 UTC

August lull only partly explains market jitters

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By Dominic Elliott

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

Global equities have taken fright. The U.S S&P 500 benchmark fell 1.4 percent on Aug. 15, its biggest drop for almost two months. The VIX, a measure of the S&P’s implied volatility over the next 30 days, leapt 13 percent. And China’s Shanghai Composite Index spiked 5 percent on the morning of Aug. 16, before snapping back.

Aug 14, 2013 13:47 UTC

Battered E.ON and RWE still far from bottom

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By Olaf Storbeck

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

Shareholders of German utilities have gone through three horrible years. Since April 2010, E.ON’s stock-market value has declined by 55 percent and RWE’s by 68 percent. The German stock market as a whole gained more than a third in the same period. But the battered shares probably have further to fall.