SEC learns true cost of China accounting goodwill
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
China’s shaky accounting practices are a sound target for U.S. regulators. Or at least, they would have been ten years ago. The Securities and Exchange Commission’s action against China-based auditors, including affiliates of big accountants like KPMG and Deloitte who refuse to hand over files on U.S.-listed companies, comes too late. If the SEC pushes the point, it could bring a moral victory, but a financial mess.
Wall Street deal-making has lesson for Washington
By Jeffrey Goldfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
When it comes to deal-making, Washington could learn from Wall Street. The U.S. budget talks have become the equivalent of an ugly, public merger proxy battle. While investment bankers are often too eager to push for a deal, they also know that negotiating in public usually only makes things tougher.
I think that every congressman should be able to draw a diagram for any individual in any industry such that the diagram shows the avenues by which money spent by the individual circulate back to the individual. Without this visualization, no person can discus what improves or impedes the circulation of money. With this visualization, we can imagine many different excellent solutions to the fiscal conflict.
UK could raid the rich to boost a poor economy
By Ian Campbell
The author is a Reuters Breakingviews columnist. The opinions expressed are his own
George Osborne has his hands tied. Britain’s Chancellor of the Exchequer wants to boost a flat economy but he needs to tighten policy to hit his targets and meet his own fiscal rules. He may well be able to square the circle in next week’s Autumn Statement – by taking from the rich and putting money into poorer hands that are eager to spend.
If Osborne wants to put money into poorer hands then he should stipulate that the richer hands spend more money. This could be the basis for a new taxing concept focussed around the problem of moving money out of richer hands. Imagine that instead of raising income taxes on the rich or taxing their properties, we stipulate that they must spend 50% (or 80% or 90%) of their income on taxable purchases. This concept would generate tax revenue. It would move cash out of rich hands. AND it would stimulate the economy.
Spain’s bank rescue is part bail-in, part bail-out
By George Hay and Neil Unmack
The authors are Reuters Breakingviews columnists. The opinions expressed are their own
Spain’s bank haircuts are part bail-in, and part bail-out. The indebted government has lopped 10 billion euros off its euro zone-funded bank rescue bill by cutting the value of its worst lenders’ hybrid debt. Yet if it hadn’t been for political considerations, the burden-sharing might have been greater.
Carney at BoE changes the game for UK banks
By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own
Mark Carney’s appointment as governor of the Bank of England changes the game for UK banks. On the big issues – capital, liquidity, and structural reform – the Canadian central banker is unlikely to deviate significantly from current policies. But the new man’s different skills and interests, compared to current incumbent Mervyn King, could still make a tangible difference.
Euro zone gives Greece almost a good deal
By Neil Unmack
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The stand-off between Greece’s lenders has ended – sort of. The deal isn’t perfect but it paves the way for further debt relief.
Australia can’t pin its growth hopes on property
By Andy Mukherjee
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
As Australia’s mining boom sputters, the country is searching for a new economic engine. The leading candidate is property. But policymakers will be taking avoidable risks in stoking a real-estate bubble. It would be safer to accept lower GDP growth.
China’s nemesis: bribes, banquets and backslapping
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Corruption is to China what bad weather is to Britain – a source of constant complaint, and a fact of life. But the rise of the Internet and slowing growth mean China can’t continue along its old path. Incoming President Xi Jinping and his chief graft-buster Wang Qishan have a chance to slay the beast. Enforcement, education and the market will be their most effective weapons.
Catalonian independence isn’t worth the pain
By Pierre Briançon
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The politicians who are arguing for Catalonia’s independence from Madrid can make a seemingly convincing case that the region would be economically viable as a standalone, sovereign nation. Except that they miss the point. The relative wealth and prosperity Catalonia currently enjoys depends on its links to Spain, the euro zone and the wider European Union. A unilateral breakup would leave Catalonia stranded, and considerably poorer. It would take years before it could become “viable” again.
Greece needs a positive shock
By Hugo Dixon
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Greece needs a positive shock. It didn’t get one at the overnight Eurogroup meeting. While a deal may be struck when finance ministers reconvene next week, it risks being a fudge. The International Monetary Fund, which is demanding a proper plan to make Athens’ debt sustainable, should stand its ground.
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FEATURED VIDEO
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Breakingviews: Dimon's losing winMay 21 - JPMorgan's Jamie Dimon has secured enough votes to keep both the chairman and CEO roles. Rob Cox and Breakingviews columnists discuss why it's a defeat for governance.Video
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Breakingviews: Apple feels global tax heatMay 21 - Apple is the latest multinational company to come under the spotlight for its offshore tax practices. What's needed is a global corporate tax deal, says Breakingviews' Edward Hadas.Video
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