Breakingviews-Man U investors can always vote with their feet
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own)
By John Foley
HONG KONG, Sept 20 (Reuters Breakingviews) – Shares without
votes raise hackles. Consider the disquiet around Manchester
United’s upcoming listing in Singapore, where new shareholders
may be offered a package of vote-lite instruments that will
entrench the Glazer family’s control. But while unorthodox,
that’s not necessarily bad. Besides, investors are free to
demand a discount, or boycott the IPO altogether.
China’s friendly blackmail of EU may do the trick
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
It’s no surprise that China’s pledges of support for indebted trade partners come with strings. But Premier Wen Jiabao, addressing the World Economic Forum on Sept. 14, was unusually blunt about what he expects in return: to be named by Europe as a market economy. That would cost Europe little — but that doesn’t mean it should agree.
Stated numbers don’t tell China’s inflation story
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
When China reports this week that the consumer price index rose around 6 percent in a year in August, economists may say inflation has peaked. They said the same last year, when CPI was running half as fast. The problem isn’t bad forecasting, but that China’s headline inflation measure is flawed.
Nigeria deals the dollar another blow
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Imagine you get an email from someone claiming to be a Nigerian central banker. Yes, just imagine that. Your correspondent has heard that you are of sound character and good judgment, and is in search of a safe haven to store $3 billion in oil riches. In return you are offered untold goodies –- numerous investment opportunities and access to a huge potential market of middle-class consumers.
Shadow banking in China needs restraint
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
China’s banks have been lending freely since the financial crisis. They’re not the only ones. Companies, ill-understood trusts and even individuals have joined in the frenzy, pushing China’s estimated credit growth this year to more than twice the official target. Reining in this so-called “shadow banking” system will be painful -– but letting it run rampant would be worse.
Take Chinese bank earnings with a pinch of salt
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
HONG KONG — China’s five biggest banks grew combined earnings by 37 percent during the first half of 2011. Lending margins and fees rose, while bad debts fell. In a sign of high times, some big banks are now even offering their best customers private jet services. Yet there is still plenty to worry about, and that explains why their shares have fallen roughly a quarter from this year’s peak.
Breakingviews-Take Chinese bank earnings with a pinch of salt
By John Foley
HONG KONG, Aug 26 (Reuters Breakingviews) – Bad loans are
falling, capital buffers look healthy and earnings are shooting
ahead –- so why have China’s bank valuations fallen so far? Look
deeper and there are signs that a slowing economy is hurting,
potential problems lurk off the books, and small banks are
struggling.
Full view will be published shortly.
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China’s bank rules promise safety, not stability
By John Foley
HONG KONG, Aug 19 (Reuters Breakingviews) – Lenders will end
up well padded against bad debts under new plans — a good job,
since lots are coming. But the distortions that promote risky
lending remain. With capital scarce, banks may also push more
loans through China’s worryingly large “shadow” banking system.
Full view will be published shortly.
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Get Breakingviews alerts directly to your inbox three times
a day. To sign up click here: here
Breakingviews-China’s bank rules promise safety, not stability
By John Foley
HONG KONG, Aug 19 (Reuters Breakingviews) – Lenders will end
up well padded against bad debts under new plans — a good job,
since lots are coming. But the distortions that promote risky
lending remain. With capital scarce, banks may also push more
loans through China’s worryingly large “shadow” banking system.
Full view will be published shortly.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Get Breakingviews alerts directly to your inbox three times
a day. To sign up click here: here
Baidu smear campaign can’t be brushed aside
By John Foley
HONG KONG, Aug 18 (Reuters Breakingviews) – Critical reports
by Chinese state TV have knocked 9 percent off the dotcom
giant’s shares. It may be professional envy rather than
political conspiracy. Still, the Communist Party’s relationship
with the web is fractious. And Baidu’s ownership structure may
be an Achilles’ heel.
Full view will be published shortly.
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a day. To sign up click here: here
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