Breakingviews

Buoyant markets give ECB upper hand in Irish spat

By Neil Unmack and George Hay

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

Buoyant markets are allowing the European Central Bank to play tough. The ECB’s governing council has rejected a plan by Dublin to restructure its 2010 bank bailout, on the grounds that it would breach its rules against funding governments. And with markets still docile from the ECB’s own bond-buying promise, the pressure to cut a special deal for Ireland is receding.

China FX swap may blur Bank of England mandate

By Peter Thal Larsen

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

The Bank of England is discovering the downside of being the City of London’s chief watchdog. The central bank is under pressure from financial institutions to set up a currency swap with the People’s Bank of China. Such a move would help to boost London as a centre for trading offshore renminbi. However, worrying about the City’s competitiveness also risks blurring the BOE’s main objective of preserving financial stability.

Ticket to ride up London’s Shard looks toppy

By Quentin Webb

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

Why the dizzying cost to gawp out at London from the top of the Shard? From February visitors can pay nearly $40 to watch the world go by from the top of Renzo Piano’s striking tower. If the weather obliges, the view from 310 metres up will astound. But the cost is steep compared to viewing other great cityscapes. Blame the footloose global rich.

Davos desperately seeking the next Internet

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

To feel good again, the world’s financial elite need a growth catalyst like the Internet. America’s shale gas revolution fits the bill. Ask delegates at the World Economic Forum in Davos for their 2013 outlook, and that simple idea features in most answers. It may only surface as a passing reference in conversations around the Swiss ski resort. But in the echo chamber of Davos, the notion that shale gas is a reason to be bullish has become common wisdom.

South Korea may need a rate cut to fight weak yen

By Andy Mukherjee

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

Japan’s weak yen policy could be South Korea’s biggest economic enemy this year. The strengthening won, which has risen 23 percent against the yen in the past six months, was partly to blame for the country’s anaemic GDP growth in the fourth quarter. It’s also putting the squeeze on manufacturers like Hyundai. Lower interest rates could help to ease the pressure.

Apple finally succumbs to uncreative destruction

By Robert Cyran

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

Apple has finally succumbed to uncreative destruction. A five-year run with the iPhone and iPad catapulted the company to investment royalty, but it’s coming to an end. Over $50 billion of market value – nearly the equivalent of HP and Dell combined – vaporized in the hours after Apple reported flat fourth-quarter profit. Copycats are gaining and margins are shrinking. Chief Executive Tim Cook needs a real innovation to escape this Red Queen’s race.

Cameron bets big on confused European ideas

By Edward Hadas

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

David Cameron is loyal to a European Union. Sadly, it is not the EU that happens to exist, or is likely to exist any time soon. The British prime minister tried to outline his position in a speech on Wednesday, which culminated with the promise of a UK referendum on membership some years from now. Yet his dreaming is confused and counterproductive.

China’s bail-in bonds leave room for conflict

By John Foley

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

When China’s banks make a mess, the government usually pays the clean-up bill. But Industrial and Commercial Bank of China’s plan to issue $9.6 billion of so-called “bail-in bonds” suggests the costs of the next crisis will be spread more widely. For investors, there’s room for confusion and conflict.

BOJ must now make its bold inflation goal credible

By Andy Mukherjee

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

After more than a decade of feigning helplessness against falling prices, the Bank of Japan has finally signed up for combat duty.

Heathrow needs decisive capacity fix

By Chris Hughes

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

Heathrow spent more than 36 million pounds on improving its snow defences after the chaos in 2010. The result? More bad publicity for London’s hub airport when this winter’s first blizzards hit. Heathrow’s operational upgrades have failed to address the fundamental problems it faces.