Aug 22, 2013 05:05 UTC

Fed liquidity curbs will act as Asia’s detox plan

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By Andy Mukherjee

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

The Federal Reserve is forcing Asia to kick its addiction to hot money. The prospect of higher U.S. interest rates had made the region’s dwindling trade surpluses look an increasingly dangerous habit. Though markets may be turbulent, pricier local money or cheaper currencies will improve the trade balance for most Asian countries.

Aug 21, 2013 09:23 UTC

India in depth: Let rupee sink to save the economy

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By Andy Mukherjee

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

India’s failing defence of the rupee is doing more harm than good. It’s time New Delhi left the plunging currency to market forces and shifted its focus to boosting exports and investment.

Aug 21, 2013 05:53 UTC

Bo Xilai trial says little about China rule of law

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By John Foley

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

The trial of Bo Xilai is a test of China’s political tolerance, not its rule of law. For foreign capitalists, the latter matters more. It’s almost unthinkable the ousted Chongqing party chief will receive anything other than a guilty verdict. Yet it’s still possible to hope that disputes over investment and contracts will be resolved in a more transparent way.

Aug 20, 2013 05:50 UTC

China price probes may be too much of a good thing

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By John Foley

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

China’s trustbusters have found their mojo. Last month, the National Development and Reform Commission fined six milk companies including Danone and Fonterra for fixing prices. Petroleum groups, telecom operators, banks and auto makers may be next to feel the heat. China needs stronger watchdogs, as long as what motivates them is a hunger for good, not a taste for glory.

Aug 19, 2013 04:46 UTC

Strategic nepotism may give Wall St a Chinese burn

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By John Foley

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

Investment bankers are only as good as their contacts. In China, that may present Wall Street with a problem. The Securities and Exchange Commission is investigating whether JPMorgan hired relatives of powerful people to win business, according to the New York Times. If it decides the answer is “yes”, foreign banks will find it even harder to get a foot in the door.

Aug 16, 2013 04:47 UTC

Indonesia imitates India’s costly growth obsession

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By Andy Mukherjee

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

Indonesia is failing to learn from India’s economic misery. That makes it a candidate for a disorderly decline in the currency, runaway inflation and financial instability.

Aug 15, 2013 14:42 UTC

Markets are poor judge of Egyptian violence

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By Kevin Allison

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

Investors responded to the violent crackdown in Egypt by bidding up the price of oil and of insuring the country’s sovereign debt. The reaction is understandable, but not insightful. Political risk is just too difficult to price.

Aug 15, 2013 06:51 UTC

Why Japan’s corporate tax rate should remain high

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By Andy Mukherjee

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

Japan’s prime minister should stop fretting about the country’s high corporate tax rate. Easing the burden on companies in an attempt to stimulate investment might seem appealing, but could prove both unnecessary and fiscally reckless. A temporary investment tax credit would be a better alternative.

Aug 14, 2013 05:33 UTC

Zhu Rongji merits China’s admiration not imitation

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By John Foley

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

China is channelling its old leaders. A new book of speeches by Zhu Rongji has focused attention on the ex-premier who slashed state-owned enterprises, tamed banks and curbed runaway inflation in the 1990s. The current incumbent, Li Keqiang, faces some similar challenges. He would do well to imitate Zhu’s style, though not his methods.

Aug 9, 2013 01:47 UTC

Two-child policy may be too late for China

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By Robyn Mak

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

China needs more babies to counter its ageing population and shrinking workforce. But relaxing the country’s one-child rule may not be enough to convince increasingly prosperous Chinese women to have more children. Even if effective, the shift would only have a marginal impact on the economy.