Mar 25, 2014 08:15 UTC

Rich world exports its way to trouble

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By Andy Mukherjee

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

Rich nations are exporting their way to trouble. For eight straight quarters, advanced economies have exported more goods and services than they have imported, suggesting that as a group they are free-riding on world demand, most of which has come from emerging markets. But this growth strategy is both selfish and self-defeating.

Mar 24, 2014 04:42 UTC

Li Ka-shing de-risks with $6 bln Temasek sale

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By Una Galani

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

Li Ka-shing is de-risking. The Hong Kong tycoon has ditched plans to list his retail division AS Watson in favour of selling a 24.95 percent stake to Temasek for $5.7 billion. The deal crystallises a decent valuation for Li without the uncertainties of an initial public offering (IPO). For the Singaporean state fund, it’s a bold bet on consumer growth and private investments.

Mar 21, 2014 18:29 UTC

Can regulating prostitution like a business work?

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By Martin Hutchinson

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

Would regulating prostitution like a business be a good idea? A landmark study commissioned by the U.S. Department of Justice raises that age-old, vexing question. What emerges from the analysis of the commercial sex trade in eight American cities is an industry with mostly willing buyer/willing seller transactions, albeit with highly coercive management – suggesting that though prostitution may always be immoral it might be less damaging if legal.

Mar 21, 2014 18:10 UTC

Review: A world of reasons for the dollar to crash

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By Martin Hutchinson

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

In “The Death of Money,” author James Rickards sees a world of reasons for the dollar to crash and the world monetary system to collapse. The greenback does indeed have dangerous adversaries, from China to al Qaeda. However, Rickards lets the Federal Reserve and budget deficits off too lightly as generators of trouble, and his solutions would cause yet more havoc.

Mar 21, 2014 13:14 UTC

Obama’s new sanctions aim to expose crony Putinism

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

 

Barack Obama is hitting Vladimir Putin where it hurts – his inner circle. New U.S. sanctions against a Russian bank and a host of tycoons are ostensibly just an escalated response to the annexation of Crimea. But they also allege a link between the Kremlin boss and Gunvor, a secretive Swiss oil trader. Washington seems determined to reveal how Putin and his comrades have amassed immense personal wealth at public expense.

COMMENT

I’m far more interested in HOW so many US politicians become multimillionaires AFTER being elected.

Posted by SaveRMiddle | Report as abusive
Mar 21, 2014 06:13 UTC

Li & Fung revival depends on more than split

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By Peter Thal Larsen

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

Li & Fung has embraced financial engineering. The Hong Kong trading house, which grew to prominence by helping Western companies find cheap factories in Asia, has announced plans to spin off its branding arm into a separate unit. Though investors welcomed the news, any sustained re-rating requires both bits of the company to demonstrate they can deliver organic growth.

Mar 20, 2014 13:04 UTC

Euro zone periphery trade is running out of gas

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By Neil Unmack and Fiona Maharg-Bravo

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

The euro zone periphery trade is running out of gas. Investors keen on a recovery story have been piling into assets in Spain, Italy, Portugal and Greece for over 18 months now. But some periphery assets are looking expensive. Further gains need two tricky conditions to be satisfied.

Mar 20, 2014 06:19 UTC

Confused Fed adds to emerging market muddle

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By Andy Mukherjee

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

A confused U.S. Federal Reserve has added to the muddle in emerging markets.

At their meeting that ended on March 19, the nine voting members of the Federal Open Market Committee (FOMC) wriggled out of a previous commitment to start increasing interest rates after unemployment had fallen to 6.5 percent. To assure markets that overnight rates will stay at near-zero levels, the committee promised instead to seek maximum employment and 2 percent inflation.

Mar 19, 2014 17:34 UTC

UK’s political budget transfers from young to old

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By Ian Campbell

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

George Osborne claimed to have a big white rabbit up his sleeve. It turned out the UK chancellor had hidden a cuddly toy for pensioners. Osborne is running the budget for both the economy and the election.

COMMENT

Too many Brits have been taken in by this “rich deserve more” propaganda. Consider this info from across the pond: “Fact: One economist estimates that for every $1 we spent on unemployment insurance benefits, we get $1.61 in economic activity back.”

This comes from Moody’s Analytics chief economist Mark Zandi.

Not included in his formulae is the on going cost to the community of ill health incurred when on a tight budget, decay of property through lack of heating and investment, morale sapping inability to provide for dependents, loss of educational standards to the children etc etc. When people who are even relatively well off lobby for more we can be forgiven for shaking our heads in disbelief. Can’t we?

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Mar 19, 2014 06:35 UTC

Japan stock market selloff is a temporary setback

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By Peter Thal Larsen

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

Japan’s stock market has suffered a temporary setback. The country’s equity indices have dropped more than 10 percent this year in local currency terms. With the central bank on standby for more easing, however, Japanese stocks should benefit from home support.