India’s botched crackdown may be turning point
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By John Foley
HONG KONG (Reuters Breakingviews) – Arresting a self-styled Gandhian hunger-striker on Aug. 16 was a foolish move by India. Manmohan Singh’s government claims not to have directly requested Anna Hazare’s brief detention, but the episode has cost it some credibility all the same. India’s political sclerosis may now worsen. In the short term, that will hurt an economy facing inflation of above 9 percent and in dire need of decisive reform. Yet the ruckus could have a good long-term outcome, if the botched crackdown leads to tougher action on endemic corruption.
Fed policy creates crunch moment for Chinese yuan
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
China’s suppression of its currency creates more problems than benefits. The U.S. Federal Reserve’s pledge to keep rates near zero for the next two years provides the perfect reason to do something about it. The yuan’s rise in the last three days sets the right tone.
Thai opposition win is good for growth
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own
The Thaksins’ surprise win in the Thailand elections already has investors’ vote. As the opposition party of Yingluck Shinawatra — sister of exiled former premier Thaksin Shinawatra — took a surprise majority in elections on July 3, the baht strengthened, and the cost of insuring Thailand’s debt against default fell some 20 percent. The local stock market benchmark index rose 4.1 percent. In truth, there is some way to go before Thailand attains enough stability to regain favour with global investors — but it’s a good start.
Foster’s bid poses big FX risks for SABMiller
By John Foley
HONG KONG, June 30 (Reuters Breakingviews) – The $12 bln
approach for the Australian brewer comes as the Aussie dollar
rides high. Bidder SABMiller can hedge the risks, but only to a
point. A shifting currency could wreak havoc on a deal’s
financial logic — or on Foster’s investors’ willingness to
accept it.
Full view will be published shortly.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Get Breakingviews alerts directly to your inbox three times
a day. To sign up click here: here
Breakingviews-Foster’s bid poses big FX risks for SABMiller
By John Foley
HONG KONG, June 30 (Reuters Breakingviews) – The $12 bln
approach for the Australian brewer comes as the Aussie dollar
rides high. Bidder SABMiller can hedge the risks, but only to a
point. A shifting currency could wreak havoc on a deal’s
financial logic — or on Foster’s investors’ willingness to
accept it.
Full view will be published shortly.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Get Breakingviews alerts directly to your inbox three times
a day. To sign up click here: here
China makes an uneasy saviour for Europe
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
HONG KONG — Expectations that China will help fix the euro zone are writ large as Wen Jiabao, the premier, visits Hungary, Britain and Germany. No wonder: the single currency aids Chinese exports, and buying periphery debt may help win friends on other issues. While China appears to have much to gain, the support isn’t wholly likeable from Europe’s perspective.
Foster’s needs to brew up standalone defence
By John Foley And Quentin Webb
HONG KONG, June 22 (Reuters Breakingviews) – If SABMiller
goes hostile with its $12 bln approach, a winning counterbid for
the Australian brewer looks unlikely. Most other big rivals are
indebted or chasing racier markets. Foster’s needs a self-help
plan fast — to bag a higher offer, if not secure its
independence.
Full view will be published shortly.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Get Breakingviews alerts directly to your inbox three times
a day. To sign up click here: here
SABMiller won’t get Foster’s on the cheap
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
HONG KONG — SABMiller’s A$11.2 billion ($11.8 billion) approach to Foster’s Group is unlikely to be its last. The UK-listed brewing giant will have to dangle more to win a recommendation from its Australian target, whose shares jumped 5 percent above the A$4.90 being offered. But SAB cannot afford to stretch too far.
Samsonite makes HK listings look less luxurious
John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
HONG KONG — Maybe a stock market listing in Hong Kong isn’t such a luxury after all. Samsonite, the world’s biggest maker of luggage, slipped as much as 11 percent on its first day as a public company. It doesn’t look great for Prada, the Italian luxury goods maker poised to price its own offering. And it pokes a hole in the theory that investors in the East can’t get enough of glossy Western brands.
Stock market Sino-phobia could see capital dry up
– The author is a Reuters Breakingviews columnist. The opinions
– The author is a Reuters Breakingviews columnist. The opinions
expressed are his own –
By John Foley
HONG KONG, June 9 (Reuters Breakingviews) – Sino-phobia has
replaced sino-philia in global stock markets. Chinese companies
listed abroad suffered heavy selling on June 8 amid mounting
fears for the credibility of their accounts. Sino-Forest
(TRE.TO: Quote, Profile, Research), the forestry group listed in Canada, has shed 72
percent of its value since June 2, when a short-seller claimed
it had fudged key numbers — despite a company denial. Software
maker Longtop (LFT.N: Quote, Profile, Research) is being probed by regulators after its
auditor and finance director quit. Taomee (TAOM.N: Quote, Profile, Research), an Internet
stock that’s just taken a U.S. listing, admitted to flaws in its
internal controls. Similar stories have been around for months.
But the penny has finally dropped.
-
About John
-
Follow John
