Jun 11, 2014 14:22 UTC

China’s vanishing metals corrode confidence

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By John Foley 

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

Faith in metal-backed lending in China is corroding – and so is confidence in the country’s giant credit system. Authorities and banks including Standard Chartered and CITIC are investigating whether traders at Qingdao port used the same lot of copper and aluminium to back multiple loans. Vanishing collateral isn’t a new problem, but could prove to be China’s weakest link.

Jun 10, 2014 14:28 UTC

Investors cheer for Brazil World Cup rout

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By Rob Cox

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

At the opening of the Confederations Cup in Brasilia a year ago, President Dilma Rousseff was booed by thousands of soccer fans for all of Brazil to see. It’s easy to understand then why she isn’t planning to speak at Thursday’s opening ceremony of the World Cup. An embarrassing turn as host of Earth’s biggest sporting event – or crushing repeat of the 1950 Maracanaço – may be the greatest obstacle to her clinching a second term.

COMMENT

50 billion dollar stadiums do not solve poverty. They cause it. What an arrogant waste of money. Brazil already had stadiums. Why so flashy now?

Posted by AlkalineState | Report as abusive
Jun 10, 2014 07:12 UTC

China’s mini-stimulus verges on micro-management

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By John Foley

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

Fine-tuning and micro-management are close cousins. China’s central bank is tending toward the latter. The latest policy tweak will let some banks lend more to the rural sector, and fits a wider regulatory trend of selective easing. But it adds needless complexity, and takes China further from its stated goal of being more market-driven.

Jun 9, 2014 07:19 UTC

China-U.S. cyber spat risks corporate casualties

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By Ethan Bilby

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

China’s security spat with the United States risks corporate casualties on both sides. The People’s Republic has responded to U.S. allegations of cyber spying by targeting American tech companies. A continuing dispute could lead to blocked deals in the United States and lost sales in China. Though companies can try to ease concerns, it’s hard for them to escape a political escalation.

COMMENT

Well if the Chinese start blocking their markets to certain companies these same companies should stop hiring in China and move to other countries instead especially America if they are in fact American companies. These companies should also put a halt on hiring Chinese nationals in other countries where they have offices.

Posted by CountryPride | Report as abusive
Jun 7, 2014 12:13 UTC

Future financiers condemned to repeat sins of past

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By Jeffrey Goldfarb

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

Future financiers are condemned to repeat the mistakes of the past. Nearly 150,000 wannabe investment advisers, bankers, risk managers and analysts around the world will sit for the CFA exam this weekend. Success hinges on their understanding of the capital asset pricing model and return on equity. Knowledge of disasters like the South Sea Bubble and the Great Crash, though, are not required. Widespread ignorance of financial history is an overlooked systemic risk.

Jun 6, 2014 14:33 UTC

Three ways for FIFA to score on governance

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By Robert Cole

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

Allegations of corruption have caught FIFA offside. Questions about the way Qatar won rights to the 2022 World Cup surfaced less than two weeks before the start of this year’s quadrennial tournament. There could scarcely be a worse time for embarrassment.

Jun 6, 2014 09:29 UTC

Review: China gives Africa handy investment lesson

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By Stephanie Rogan

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

In the last decade nearly a million Chinese citizens have taken up residence in Africa. In his vivid new book, “China’s Second Continent,” Howard French tells stories of these migrants and the Africans whose lives they affect. The book weaves anecdotes and interviews with historical and geopolitical background to tell a larger tale of the PRC’s economic engagement in the continent. The result is an unflattering portrait of China’s involvement.

Jun 6, 2014 07:24 UTC

Jack Ma soccer buy does Alibaba investors a favour

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By Peter Thal Larsen 

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

Jack Ma’s decision to buy half of China’s most popular soccer club has done prospective investors in Alibaba a favour. The $192 million investment in Guangzhou Evergrande which the internet giant’s founder hatched over a drinking session this week won’t affect Alibaba’s value when it goes public later this year. But it offers a priceless insight into how the company works.

Jun 5, 2014 06:25 UTC

Chinese hiccup temporarily deflates dairy bubble

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By Ethan Bilby 

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

The world’s biggest milk importer is taking a break from its dairy diet. The price of milk-related products tracked by auction platform GlobalDairyTrade has fallen 25 percent since January. Though the decline is partly due to improving supply, demand from voracious buyer China has also fallen. That lull is unlikely to last.

Jun 4, 2014 13:20 UTC

Central banks abet the complacency they fret about

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By Swaha Pattanaik

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

It is commonplace for central bankers to protest against violent price swings, but these days they are concerned that markets are too placid. New York Fed President William Dudley, European Central Bank Governing Council member Ignazio Visco, and Bank of England Deputy Governor Charlie Bean have all recently expressed disquiet about very low volatility. They are right to worry, but in casting blame, policymakers need to look in the mirror.

COMMENT

OK, Let me get this straight:

First the Fed creates a stable economy with slow growth (as opposed to no growth or negative growth).
Then, Traders and some investors get greedy and reach for yield via high risk investments.

Then, when those investments crash – which they invariable do — it is Fed’s fault???

That’s TeaParty logic if I ever heard it! Whenever bad things happen, it is ALWAYS the fault of government. Get rid of government! It’s no good!!!

ROFL…

Posted by GeorgeBMac | Report as abusive