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

HONG KONG — Big mining never had it so good. BHP Billiton and Rio Tinto, basking in high commodity prices, have topped off record earnings with a plan to hand back a combined $15 billion to investors via shares buybacks. The two
Anglo-Australian miners are also stepping up capital expenditure dramatically — BHP spending $80 billion over five years. Big M&A is off the cards. Read between the lines, and the miners might just be getting ready for the turn.

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

HONG KONG — When China raises rates, speculators quake. Tuesday’s after-hours rate hike had a near instantaneous effect on global markets, sending copper back below $10,000 a tonne, and crude oil below $100 a barrel. If only the Chinese economy were so responsive.

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

By John Foley
Nomura is evolving into a global investment bank, even if it doesn’t yet look like one. The Japanese financial group reported a strong increase in investment banking fees for the final quarter of 2010, and its traders have begun to prove their worth. The gap with the big league is closing, slowly.

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

HONG KONG — How many yuan does it cost to buy Google? Or Goldman Sachs? Chinese companies may soon be allowed to use the domestic currency to buy foreign assets and companies, according to a new pilot scheme announced by the People’s Bank of China on Jan. 13. There are plenty of restrictions, and a global rash of yuan-denominated deals is a distant prospect. But the move is an important step.

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

HONG KONG — Food prices are rising to dangerous levels. There is talk of a coming crisis, like the ones that produced riots around the world in 2008 and 1974. Many of the ingredients of a disaster are present, but governments can stop it before it causes too much damage.

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

HONG KONG — It is seven years since Lone Star bought into Korea Exchange Bank, and four years since the U.S. distressed-asset fund started trying to get out. Lone Star has finally agreed to sell its majority stake in the lender to domestic rival Hana Bank. The sizeable returns it has made explain why buyout groups like Blackstone and KKR are interested in South Korea, although Lone Star itself may not be rushing back.

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

HONG KONG — Carpet-bagging miners are going where the money is. Russian aluminium producer Rusal started a trend in January when it pitched its $2.2 billion initial public offering in Hong Kong. Now Resourcehouse, an Australian miner, may follow, and Brazilian iron ore giant Vale is considering Hong Kong for a secondary listing. For all that, though, London still comes out on top.

China’s first rate hike since 2007 sounds more momentous than it is. But the modesty of the 0.25 percentage point move means there’s scope for more substantial action on China’s too-cheap currency.

There are two good reasons for China to tighten, namely to remedy negative real interest rates and to curb runaway property prices. The new higher deposit and lending rates — 2.5 percent and 5.56 percent respectively — won’t really do either. Consider the negative real rates. The central bank’s action will at best take the edge off stirring inflation, but the maximum allowable reward for holding deposits is still below the targeted inflation rate of 3 percent. Depositors’ own inflation expectations are likely to be much higher. China’s savings are still being bled away.