Why do markets pay attention to rating agencies?

By Hugo Dixon
April 28, 2010

Why do markets still pay attention to what rating agencies have to say? Following their appalling record predicting the subprime mortgage crisis, it is astonishing and sad that investors still seem to quake when Standard & Poor’s junks Greece and downgrades Spain.

Fiat to spin off auto business: source

By Hugo Dixon
April 20, 2010

LONDON/TURIN, Italy (Reuters) – Italian industrial group Fiat SpA <FIA.MI> will spin off its auto business under a new strategic plan, a source said on Tuesday, and shares surged almost 9 percent on the possibility of a demerger.

Goldman’s CDO investors: fools or victims?

By Hugo Dixon
April 19, 2010

By Hugo Dixon and Richard Beales

Were the investors who lost $1 billion by buying a fearfully complex product sold by Goldman Sachs in the dying days of the credit boom fools or victims? That’s the key distinction on which the U.S. Securities and Exchange Commission’s fraud charges, which roiled the investment bank when they were unveiled on Friday, hinge.

Fears of UK hung parliament may be overstated

By Hugo Dixon
April 19, 2010

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

Europeans won’t be amused by alleged Goldman scam

By Hugo Dixon
April 16, 2010

Europeans won’t be amused by the alleged Goldman Sachs scam. ABN Amro, and therefore ultimately Royal Bank of Scotland, ended up losing $841 million in the allegedly fraudulent collateralised debt obligation investment concocted by the investment bank. Meanwhile, IKB, the bust German bank, lost nearly $150 million.

Crisis, what crisis?

By Hugo Dixon
April 16, 2010

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

Sovereign debt maths show risk of vicious circle

By Hugo Dixon
April 9, 2010

How can a country support debt of over 100 percent of GDP for many years and then suddenly start spiralling towards insolvency? That question of sovereign debt maths is not merely academic. It is highly relevant to the likes of Greece and Italy.

The UK should not waste its fiscal crisis

By Hugo Dixon
April 7, 2010

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