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Breakingviews Headlines

Breakingviews - Global watchdogs may curb U.S. deregulatory push

Global bank watchdogs are acting as a line of defense against a U.S. deregulatory push. The U.S. Treasury Department will soon decide whether to recommend scrapping the post-crisis bank resolution regime, as some Republicans urge. But foreign regulators are threatening to impose new curbs on American firms if it's ditched.

Breakingviews - Mistimed writedowns lesser of mining M&A evils

Rio Tinto bought a coal mine in Mozambique in 2011 for too much money. U.S. and UK regulators now say it came clean about the real, diminished value of the mine too late. The second type of problem is less likely to recur. Rio has settled one case already and, in any event, the accounting rules for writing down badly priced acquisitions are relatively clear. If only there were similar safeguards against mining bosses getting carried away with deals in the first p

Breakingviews - Indonesia's slowdown belies Jakarta's reform spin

Few central banks have been busier over the last 22 months than Indonesia’s. Despite eight easing moves, however, growth is stuck at 5 percent, lagging China, India, the Philippines and Vietnam. Consumer spending was down an average 1.1 percent in July and August year-on-year.

Breakingviews - Viewsroom: President Xi Jinping’s moment

The Chinese Communist Party’s 19th National Congress kicks off this week. Delegates at the week-long confab will select new leaders, including for key financial and economic posts. But the spotlight will be on Xi and whether he can consolidate his power and extend his reign. Listen to the podcast: https://soundcloud.com/reuters/president-xi-jinpings-moment

Breakingviews - Goldman pips Morgan Stanley on style not substance

Goldman Sachs pipped Morgan Stanley on style in the third quarter, but not on substance. Lloyd Blankfein’s firm cranked out $2 billion of earnings in the three months to the end of September, at an annualized return on equity of 10.9 percent. That bested the 9.6 percent showing of Goldman’s main Wall Street rival – the first time this year that it has come out ahead. Morgan Stanley boss James Gorman, though, has crafted a more attractive-looking business

Breakingviews - Heads or tails, Mark Carney loses

Doing the right thing is its own – and sometimes only – reward. Bank of England Governor Mark Carney’s hints that policy interest rates may soon rise can be justified by higher inflation. But he is in a no-win situation. The central banker will be criticised for hurting a slow-growing economy if he hikes and accused of playing fast and loose if he delays.

Breakingviews - Credit Suisse breakup faces trading conundrum

Calls to action are designed to provoke an immediate response. Such imperatives are understandable in the case of Credit Suisse. Shares in the Swiss lender are 13 percent below the price at which it raised money from investors in 2015 and have underperformed the STOXX Europe 600 Banks index by 23 percent since Tidjane Thiam became chief executive. Even so, a plan to split the Zurich-based group into three faces a capital markets conundrum.

Breakingviews - Guest view: Chinese oil can fuel North Korea talks

Nothing will concentrate the minds of North Korean leaders more than a Chinese oil embargo. Nearly 90 percent of the country's petroleum comes across the border, giving Beijing enormous  leverage. Cutting off these shipments would swiftly weaken the North's military capacity and help restart negotiations.

Breakingviews - Cox: Next Fed chair will need unusually thick skin

There are two things the next leader of the Federal Reserve must prepare for: a recession and a public beating. The first is a statistical likelihood. The second, however, is a bankable certainty. If there is anything predictable about President Donald Trump, it is his willingness to bully institutions with authority separate from his own. And the U.S. central bank's effectiveness relies on its independence.

Breakingviews - Netflix valuation outstrips burgeoning opportunity

Netflix's valuation outstrips its burgeoning opportunity. The $87 billion video-streaming service hit another all-time high on Monday, benefiting in part from Comcast and AT&T recently warning of a fall in subscribers. Pay-TV customers cutting the cord should mean more viewers for Netflix. But even that and a fee hike last month don’t justify it trading at a sky-high multiple.