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
Jun 4, 2014 07:55 UTC

China wrestles with repression of financial sort

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By John Foley 

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

China is richer and more stable than when tanks rolled into Tiananmen Square 25 years ago. Then, incomplete political reforms led to chaos, violence and retrenchment. While there’s little risk of that now, a similar dynamic is playing out in the financial system.

Jun 3, 2014 14:54 UTC

Fed fundamentalists deserve fresh listen

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By Rob Cox

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

A portrait of Milton Friedman hangs at the entrance to the Stauffer Auditorium at Stanford University’s Hoover Institution. It carries no identification, and doesn’t need any. All who enter here can be counted on to recognize the patron saint of contemporary free-market economics. And so it was two days last week, when the leaders of what might be dubbed monetary fundamentalism gathered under Friedman’s watchful gaze.

COMMENT

Trickery cannot replace a merit based society. When those with real capabilities are limited by those that manipulate you demotivate the capable. Fill their spots with your vacuous minions if you like but you lose in the long term. Things like justice and liberty and law are necessary for very practical reasons, not simply to placate the masses in a fake way. Without them (and we are without them) what is the point of endeavour? The central bank and their army of manipulators are simply tricksters.

Posted by brotherkenny4 | Report as abusive
Jun 3, 2014 06:08 UTC

China’s strikes not as bad as they seem

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By Katrina Hamlin

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

China’s workers are asking for more. Luckily, many employers can justify the expense.

Jun 3, 2014 03:51 UTC

China index: Property helps slowdown drag on

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By Katrina Hamlin

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

Our indicator stalled at 90.8 in April, just a touch up on March. The home front still looks sluggish. Rail cargo and truck sales fell while exports were flat. Property was a drag: average monthly sales growth from January to April was 17 pct, down from 22 pct last year.

May 30, 2014 03:01 UTC

Indian bank recap is painful but necessary

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By Peter Thal Larsen and Quentin Webb

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

India’s state-owned banks need a government bailout. The country’s wobbly public sector lenders require around $45 billion to put their balance sheets on a firmer footing, according to a Breakingviews calculator. That’s a bill the new government can ill afford. But if it acts fast, it may be able to take advantage of the post-election euphoria to persuade private investors to put up some of the cash.

COMMENT

Banking reforms and transparency is essential for sustained long term health of the economy and financial system. Together, the security enforcement and legal system needs to be strengthened to enable better risk taking by banks.

Posted by VikasM | Report as abusive
May 28, 2014 06:17 UTC

Korean chat app sends mixed valuation messages

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By Robyn Mak 

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

What’s the value of mobile chat apps? Investors have been scratching their heads about the topic ever since Facebook slapped a $19 billion price tag on WhatsApp earlier this year. The recent backdoor listing of South Korea’s Kakao offers a new data point. But its user metrics and revenue numbers still offer a mixed message on valuation.

May 27, 2014 13:38 UTC

Italy’s lesson for Europe: do your homework

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By Neil Unmack

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

Italy has a lesson for Europe: do your homework. The victory of Matteo Renzi’s Democratic Party in European Parliament elections demonstrates that a strong domestic politician can be more appealing than euro-bashing, even in a sickly economy.