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.

Aug 14, 2013 03:03 UTC

Carl Icahn makes #activism look easy at Apple

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By Robert Cyran 

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

Apple may be Carl Icahn’s easiest activist campaign ever. The 77-year-old billionaire disclosed a big position in the iPad maker on Twitter in what may be one of the most valuable tweets to date, at $142 million a character based on the roughly $20 billion it added to the company’s market value on Tuesday. His message was as simple as the medium – Apple should buy back more stock and fast. It would be a smart, relatively effortless move.

Aug 13, 2013 05:20 UTC

Indian banks teeter on asset-quality abyss

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By Andy Mukherjee

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

India’s banks are staring into an abyss. Loans are souring rapidly as the economy stalls. Meanwhile, rising bond yields are making it harder for lenders to absorb credit losses from current earnings.

Aug 9, 2013 18:17 UTC

Carlos Slim offers escape route to KPN investors

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By Chris Hughes

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

Carlos Slim has offered an escape route to KPN investors. The Mexican tycoon’s America Movil says it intends to make a 7.2 billion euro offer for the 70 percent of the Dutch telecoms group it doesn’t already own. It’s the start of a saga that could end in a substantially higher offer. But investors should be realistic – that’s a big “could”.

Aug 7, 2013 18:15 UTC

SAC’s Steve Cohen may be the A-Rod of Wall Street

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By Reynolds Holding

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

Steven Cohen could be the Alex Rodriguez of Wall Street. Like the New York Yankees’ $275 million slugger, the boss of hedge fund SAC Capital faces sanctions for allegedly employing an illegal “edge.” Yet it’s unclear that either broke arguably fuzzy rules. And trying to level their respective playing fields is probably futile. Ultimately, baseball and Wall Street are bigger than both.

Aug 6, 2013 07:37 UTC

Sony brush-off won’t end Dan Loeb campaign

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By Peter Thal Larsen

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

The tussle over Sony may be the most courteous shareholder battle ever. Back in May, hedge fund manager Dan Loeb respectfully suggested the company spin off a stake in its entertainment arm. Now the Japanese group’s board has politely rejected the idea. But the activist appears to be digging in for the long haul.