Dec 23, 2014 05:55 UTC

India’s growth spurt could be for real this time

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By Andy Mukherjee

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

India’s decade-long obsession with GDP expansion has proved a costly misadventure. In recent years, inflation has surged even as growth has slowed, damaging the balance sheets of corporate borrowers as well as state-run lenders.

Dec 22, 2014 21:53 UTC

China-U.S. shift will end Cold War peace dividend

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By Daniel Indiviglio

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

China’s defense outlays may match those of the United States in 15 years. Meanwhile, America’s relative austerity paired with Russian aggression could force European military spending higher. Western makers of aircraft and other weaponry will face new global competition from Chinese companies, though revenue prospects may improve. Governments, meanwhile, may have to choose between just rearming and an all-out arms race.

Dec 22, 2014 06:16 UTC

China will make 2015 year of missed opportunities

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By John Foley

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

The penny is starting to drop for foreign investors in China. Two years into the leadership of President Xi Jinping, there’s little sign of the country opening, relaxing and rebalancing as outsiders expected. It’s likely that 2015 will be another year of missed opportunities.

COMMENT

I do believe that China leaders can cope with the current economic condition just as they have well done in past three decades although they have been suffering so much ulterior motive critics and alarmist of collapse .The government of china is confident of their ability to maneuvre the balance between the economical reform and political reform .now ,most common Chinese are concerned on the economic development rather than political change .

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Dec 17, 2014 21:42 UTC

M&A “clear day” defenses can cloud investor rights

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By Reynolds Holding

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

Corporate defenses can hurt investors, rain or shine. Anti-takeover measures adopted on so-called “clear days” – before threats arise – are more likely to weather legal scrutiny. It’s one reason Allergan was able to beat back Valeant’s unwanted $52 billion advance. When such protections are triggered in the heat of battle, though, they’re considered unfair surprises. Either way, shareholders usually get unneeded cover.

Dec 17, 2014 20:19 UTC

Sony email shareholders would like to see

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By Rob Cox

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

The hacking scandal at Sony’s Hollywood studio isn’t just embarrassing. It’s a business problem for the $23 billion Japanese conglomerate already struggling to turn itself around. Herewith, a selection of internal messages Sony’s board and executives ought to be fielding this week.

Dec 17, 2014 16:58 UTC

Europe could edge past U.S. in race to courthouse

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By Reynolds Holding

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

Europe’s companies could edge past Uncle Sam’s in the race to the courthouse. New rules and bank scandals are boosting fraud and class-action filings in Britain. Patent combatants are flocking to German judges. And spats over failed investments are clogging courts across the EU.

Dec 16, 2014 19:52 UTC
Edward Hadas

Sorry, this is as good as the global recovery gets

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At the beginning of 2014, many people were optimistic about the world economy. For the fifth straight year, it had seemed safe to declare the lingering effects of the 2008 financial crisis over and done with. This time is different: 2015 is likely to begin in a merited atmosphere of gloom.

Investors are looking at the financial system with increasing dismay. Monetary policy has never been so loose for so long in developed economies, and yet lending, investments and consumer spending are still restrained. A beefed-up banking system is not yet funding rapid hiring or strong GDP growth. Abenomics – the stimulative policy package of Japanese Prime Minister Shinzo Abe – seems to be losing its shine, commodity exporters have big problems and the United States may just be bumping along a bit better than the rest.

COMMENT

Let’s quit confusing the state of the economy with the job market and income distribution. While once strongly correlated, they are no longer coupled. The economy itself may be the only thing going well. The job market is a shambles because technological advances and offshoring have permanently eliminated most of the middle class factory jobs for the minimally educated. This and failure to regulate financial markets have resulted in massive problems in income distribution. External shocks such as Russian aggression and OPEC lowering prices to eliminate competition, could cause economic problems if politicians react according to partisan ideology.

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Dec 16, 2014 16:58 UTC

EU insurers’ solvency is shakier than it looks

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By George Hay

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

The capital strength of European insurers is shakier than it looks. Recent stress tests by the European Insurance and Occupational Pensions Authority found that only 14 percent of insurers fell below a baseline level of capital strength under so-called “Solvency II” reforms. That’s not the end of the story, however.

Dec 16, 2014 16:50 UTC

Solar upstarts and utilities head for uneasy truce

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By Kevin Allison

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

Solar power upstarts and U.S. electric utilities may reach an uneasy truce in 2015. The soaring popularity of solar installations is helping to cut carbon emissions. But the trend upsets big electricity providers trying to make a return on grid investments. Utilities’ attempts to slap fees on solar users sparked uproar in 2014. Cost-sharing may take some heat out of the debate.

Dec 15, 2014 23:28 UTC

Uber’s law flouting could bring joyride to a halt

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By Robert Cyran

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

Uber’s law flouting could bring its joyride to a screeching halt. The taxi app company is covering its drivers’ fines for illegally picking up passengers. That may be just another business expense to a firm that earned a $40 billion valuation by moving quickly and breaking the rules. But the legal, lobbying and public relations costs of reckless behavior are accelerating fast.