Aug 6, 2014 11:16 UTC

Dollar set to take pound’s strong currency title

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By Swaha Pattanaik

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

Sterling emerged as the currency market strongman over the past year because investors grew increasingly confident the UK would be the first big economy to raise interest rates. The dollar now looks set to wrest the title from the pound.

Aug 6, 2014 08:01 UTC

SoftBank’s U.S. mobile retreat is least bad option

By Peter Thal Larsen 

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

Masayoshi Son has been forced to scale back his mobile phone ambitions in the United States. The chief executive of Japan’s SoftBank has belatedly bowed to hostile regulators and abandoned plans for his Sprint unit’s $32 billion takeover of T-Mobile US. He has chosen the least bad option.

Aug 5, 2014 06:00 UTC

Microsoft’s China dream sorely strains credibility

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By Ethan Bilby

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

Xbox gamers fear the “red ring of death”, a flashing light that can herald system failure. Microsoft, which makes the consoles, must be awaiting a similar sign in China. After 22 years, the tech giant has achieved little in the country, which looks to account for around 2 percent of revenue. Cloud services may multiply that over time, but political headwinds are raising the cost of business – possibly too high.

Aug 4, 2014 07:09 UTC

Treasury Wine resistance withers under KKR assault

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By Peter Thal Larsen

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

Treasury Wine has decided that a grape is worth more in the bottle than on the vine. The maker of Lindeman’s and Penfolds agreed to open its vaults after the buyout group raised a provisional cash offer to A$3.38 billion ($3.15 billion). Though the bid could yet sour, Treasury’s spell as a listed company looks like it will soon be coming to an end.

Aug 1, 2014 06:29 UTC

U.S.-backed China tech shows investment curb folly

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By Robyn Mak

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

China’s tech companies may be Beijing’s darlings, but they have U.S. dollar funding to thank. The next generation of upstarts look likely to continue the pattern. Foreign currency funds poured $5 billion into venture capital the first half of this year – three times more than local funds raised. The economic benefits these foreign investors bring make the rules keeping them out harder to justify.

Jul 31, 2014 06:53 UTC

Line’s $13 bln valuation shows chat app exuberance

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By Robyn Mak and Una Galani

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Line’s apparent $13 billion valuation sends a strong signal about chat app exuberance. The Japanese mobile messaging app’s quarterly revenue jumped 26 percent from the previous three months, its parent company reported on July 31. That pushes up valuation expectations ahead of its planned initial public offering. Yet Line’s valuation hangs on the assumption that new overseas users will spend like those back home. That seems like wishful thinking.

Jul 30, 2014 08:20 UTC

China’s political purges call for financial sequel

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By John Foley

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

The formal investigation of China’s former security chief Zhou Yongkang, almost ten months after he was last seen in public, makes compelling viewing. What is needed next is a financial sequel.

Jul 29, 2014 14:20 UTC

Deutsche/UBS: there’s life in EU bond trading yet

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By Dominic Elliott

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

Deutsche Bank and UBS have shown there is life in Europe’s bond traders yet. The two banks and Credit Suisse have been losing share to Wall Street since last year, but in the second quarter they hit back. Fixed-income revenue at Deutsche was flat year-on-year, and down just 2 percent at UBS – against a 9 percent average fall at American banks.

Jul 29, 2014 13:22 UTC

Argentine opportunity cost is reason to cut deal

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By Martin Hutchinson

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

Argentina’s debt negotiators need to think about opportunity cost. A failure to reach agreement with holdout creditors by Wednesday might not make things immediately worse. But it would set back recent efforts to curry favor with international financiers – efforts that could pay off richly for the Argentine economy.

Jul 28, 2014 06:48 UTC

China throws weight around on car parts costs

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By Ethan Bilby 

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

China’s competition watchdog has forced luxury carmakers into a U-turn. The whiff of a probe into vehicle parts was enough to get Audi and Jaguar Land Rover to reduce their prices, even though neither has been publicly deemed to be abusing its position. Experience shows in China it is better to admit guilt early than risk bigger fines, or lose access to a critical market.