Breakingviews

Would President Romney sell Uncle Sam’s GM stake?

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

Mitt Romney may be unsure which hat to wear when it comes to General Motors. In a Detroit News article this week, the Republican presidential candidate exhorted President Barack Obama’s administration to offload Uncle Sam’s holding in the automaker, which reported fourth-quarter earnings on Thursday. That may be Political Romney’s take, but selling now would leave taxpayers with a hefty loss. That’s a hit Private Equity Romney would surely avoid.

Gridlocked Congress might respond to docked pay

By Daniel Indiviglio and Richard Beales

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

If you don’t do the basics of your job, you shouldn’t get paid. It’s a simple concept, but lately it has been a foreign idea to the U.S. Congress. Federal lawmakers haven’t passed an annual budget in over 1,000 days. A new bill could apply a little financial pressure.

U.S. payroll tax fight shows faux fiscal restraint

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

The fight over U.S. payroll taxes just became exhibit A in political style over substance. Republicans in Congress, who have pounded the table on deficit reduction since last summer’s bruising debt battle, have backed down on a demand that spending be slashed to cover the cost of extending the tax cut. To let it ride for another 10 months will cost $100 billion. So much for fiscal discipline.

Dreamworks’ China deal won’t be access all areas

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

Dreamworks may soon get an exclusive ticket to China’s closely guarded film industry. The U.S. studio is likely to announce a joint venture with China-based investors during Vice President Xi Jinping’s visit to California on Feb. 17, a person familiar with the situation has told Breakingviews. It should be a good deal for the creators of “Kung Fu Panda”, but does little to lower the Great Wall around film distribution in the People’s Republic.

IMF offers best way for China to save Europe

By Wayne Arnold

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

Beijing will almost certainly say it wants to see the euro zone survive at their joint summit on Feb. 14. If so, it should pony up – not by lending directly, but via the International Monetary Fund’s $1 trillion rescue package. That way China not only has a better chance of getting paid back, but may also win a bigger role at the world’s currency watchdog.

Obama and Xi may make unhappy Valentines

By John Foley

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

The Valentine’s Day summit between Xi Jinping and Barack Obama could make for uncomfortable viewing. China’s likely next president is due to meet the U.S. leader in Washington – as his predecessor did 10 years ago. Only this time the stakes are higher. Obama, facing a November election, is under pressure to talk tough. Xi is under pressure to stay cool, while appeasing hardliners back home.

New Petrobras CEO needs to flex political muscle

By Kevin Allison and Christopher Swann

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

So much for the honeymoon in Rio. Maria das Graças Foster’s confirmation as the new chief executive of Brazil’s Petrobras on Thursday was followed almost immediately by a dismal set of fourth-quarter results. Foster, a company veteran, has her work cut out to get the state-controlled energy behemoth back on track. Petrobras’ biggest problems are more political than operational, and her engineering skills alone won’t solve them.

Pennsylvania sells out cheaply in fracking fight

By Christopher Swann

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

Pennsylvania is selling out cheaply in the fight against fracking. The Keystone State, the nucleus of national opposition to the deep-drilling technique, is poised to levy a gas tax, ostensibly to cover drilling damages. The charge may soften the hostility. But the levy is less than half that of other states, suggesting the industry still has the upper hand.

Harsh IMF approach courts disaster in Romania

By Martin Hutchinson and Christopher Swann

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

The IMF is courting disaster in Romania. The fund’s draconian conditions led Bucharest to cut public sector wages by 25 percent, far more than elsewhere. Now Romania’s prime minister Emil Boc has resigned and anti-reform forces have been emboldened. Excessive IMF rigour could do lasting harm.

Still a long slog ahead for U.S. jobs

By Daniel Indiviglio and Richard Beales

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

There’s still a long slog ahead for the unemployed in America. Jobs growth has started picking up. But even at a rate of 250,000 a month, a hair above January’s figure, full employment may not be reached until 2020. A new Breakingviews calculator shows how a faster or slower rate of job creation changes that picture.