Breakingviews

Japanese workers need to go back to the 1980s

By Andy Mukherjee

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

Japanese workers are hoping for a 1980s revival. If the Bank of Japan’s 2 percent inflation goal appears daunting, meeting it in two years – as promised by new chief Haruhiko Kuroda – is even more of a challenge. For the central bank to succeed, wages will have to grow faster than they have in the past two decades.

“Schwarzman scholarships” have many beneficiaries

By Peter Thal Larsen

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

Steve Schwarzman is giving something back – to China. The Blackstone founder is contributing his name, and $100 million of his private wealth, to kick-start a scholarship programme at Beijing’s Tsinghua University. The programme may not be entirely philanthropic: China lost much more investing in his buyout firm’s initial public offering. But there will still be many beneficiaries if the scheme helps Western and Chinese elites understand each other better.

Review: Walking cure for cash-strapped U.S. cities

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

Many American cities, from Detroit to San Bernardino, are under financial pressure. Jeff Speck, an urban planner, has a suggestion: make them more pedestrian-friendly. His book “Walkable City: How Downtown Can Save America, One Step at a Time” makes the case. Provide it, and they will come.

New oil dynamics may challenge crude growth logic

By Christopher Swann and Kevin Allison 

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

Fears for the wobbly world economy have pushed Brent crude below $100 a barrel for the first time since July. Long-term trends at work in the oil market mean it could stay depressed. That’s good, since cheaper energy helps industry. Better still, booming shale output, greater efficiency and the rise of natural gas as a rival transport fuel may keep the oil price subdued even as growth is stimulated.

IMF crowd should cut Japan some slack

By Christopher Swann

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

The crowds gathering for the International Monetary Fund’s spring meeting should cut Japan some slack. Prime Minister Shinzo Abe’s economic policies are in for a drubbing at the shindig in Washington, DC. IMF officials have been bemoaning Japan’s “risky” fiscal stimulus while the U.S. Treasury has been grumbling about the weaker yen. But Japan was right to act.

Bank hierarchy of pain could become a hydra

By Neil Unmack

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

Who should lose money when banks fail? Talk of making deposits senior to bondholders might reassure savers rattled by losses in the Cyprus bailout, and avoid bank runs. But it could lead to unhealthy arbitrage between loans and deposits. Vigilance is needed, and lots of “bail-in-able” capital.

Radical career move: become a Chinese citizen

By Peter Thal Larsen

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

Here’s a radical career choice for investment bankers: become a Chinese citizen. American-born Marshall Nicholson has swapped his U.S. citizenship for a Hong Kong passport. Though the move is largely for family reasons, it will also go down well with clients on the mainland. For Western financiers seeking a local edge, it’s the ultimate display of commitment.

Graft show-trial a new sign of Putin’s weakness

By Pierre Briançon

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

Alexei Navalny rose to prominence as a Western-style shareholder activist in a country devoid of Western-style capitalism. He took apart Russian companies’ available statements and numbers to expose graft, corruption and embezzlement detrimental to investors.

Weaker yen won’t halt Japan Inc’s overseas spree

By Peter Thal Larsen

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

A weaker yen won’t reverse Japan Inc’s overseas M&A drive. While a strong currency, low interest rates and a stagnant home market fuelled an international shopping spree in 2012, the promise of a domestic revival under new Prime Minister Shinzo Abe has caused buyers to temporarily put away their wallets. But even so-called Abenomics can’t cure Japan’s ageing and shrinking population.

Gold is the canary in the financial mine

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

Gold is a canary in the mine for financial markets. Its burst bubble warns of the huge dangers lurking for bonds, commodities and stocks. Those dangers may be at a safe distance now, but they are real.