Dec 10, 2013 12:04 UTC
Edward Hadas

Mandela’s successors can shape his economic legacy

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By Edward Hadas

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

As world leaders gather to remember Nelson Mandela, they may ponder South Africa’s middle-income trap, with economic growth held back by poor education, inadequate investment and excessive corruption. Yet compared with other post-colonial economies, even stagnation would be a tribute to Mandela’s peace-making.

Dec 10, 2013 07:44 UTC

Narendra Modi could be India’s Shinzo Abe

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By Andy Mukherjee

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

Narendra Modi could be India’s Shinzo Abe. If the recent state polls are any indicator of the electorate’s mood, the opposition politician will be prime minister of the world’s largest democracy by May next year. Just like his Japanese counterpart, Modi would oversee higher asset prices and revive growth, but struggle with structural reforms.

Dec 9, 2013 08:35 UTC

Banks’ taper rehearsal gives emerging markets hope

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By Andy Mukherjee

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

The banking industry’s dress rehearsal for tapering by the Federal Reserve has given emerging markets hope.

Dec 6, 2013 02:12 UTC

Benefits of being “G-SIFI” seem to outweigh costs

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By Peter Thal Larsen

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

The benefits of being labeled “too big to fail” may just outweigh the costs. Since regulators first published their list of global systemically important financial institutions, or G-SIFIs, the banks concerned have boosted capital and tamped down balance sheets. But smaller lenders, particularly in Europe, have done the same without joining the club. And shareholders seem not to notice much of a difference.

Dec 5, 2013 07:14 UTC

Qantas needs help to escape financial nosedive

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By Una Galani

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

Qantas needs help to escape from its financial nosedive. The Australia carrier’s shares plunged 11 percent after it warned that it will report a pre-tax loss of up to A$300 million ($225 million) in the first six months of the year. Part of the problem is that the airline is a political hybrid, restricted from raising foreign capital but without the support openly state-backed rivals enjoy.

Dec 4, 2013 08:15 UTC

Westfield shops for premium with $28 bln carve-up

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By Una Galani

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

Westfield is shopping for a premium with its A$30.3 billion ($28 billion) carve-up. Just three years after its last big reshuffle, the shopping mall giant is separating assets in Australia and New Zealand from outlets in the United States and Europe. The cleaner structure may allow Westfield to command a higher valuation.

Dec 3, 2013 05:05 UTC

“Secular stagnation” lament revives wealth paradox

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By Andy Mukherjee

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

Larry Summers reckons rich countries are suffering from long-term stagnation. If accurate, the former U.S. treasury secretary’s view is chilling. It has also revived an old, unresolved puzzle: Why doesn’t the world’s capital willingly go where it’s most needed?

Dec 2, 2013 06:33 UTC

China index: Sober lending, spending slows growth

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By Katrina Hamlin

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

Our alternative index shows China’s growth prospects at a four-month low. Lack-luster exports played a part. But the dip also reflected a healthy slow-down in new loans, sales of property and Audis, as well as a sharp fall in luxury liquor stocks.

Dec 2, 2013 06:21 UTC

Bangkok’s fiscal bias fans Thai political angst

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By Andy Mukherjee

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

Thailand’s turmoil has its roots in extreme inequality. The most recent protests – the latest in an ongoing political crisis – is at least partly a reflection of a deeper chasm worsened by a biased fiscal policy.

Nov 29, 2013 05:37 UTC

Australia too mealy-mouthed on protectionism

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By John Foley

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

Australia is being mealy mouthed about protectionism. Treasurer Joe Hockey blocked the A$3.4 billion ($3.1 billion) takeover of agricultural trader GrainCorp by U.S. rival ADM on Nov. 29, on the grounds that Australia’s grain market is only just getting used to competition, five years after the national wheat monopoly was disbanded. For Australia’s foreign investment prospects, the decision itself is less bad than the ambiguity over why it was made.