HONG KONG (Reuters Breakingviews) - China's commitment to a stable yuan looks unstable. The currency moved below 6.7 to the dollar this week, a level recently defended by state banks. That reflects a greenback rally and cooling Chinese growth, not the export weapon many investors fear. As Beijing warms to monetary easing, though, lines in the forex sand will blow away quickly.
NEW YORK (Reuters Breakingviews) - The European Commission’s $5 billion fine on Google is the least of parent company Alphabet’s worries. A companion order requiring it to stop forcing handset makers to pre-install its Google search app and Chrome browser may cause much more damage – and curb the firm from expanding in areas like self-driving cars.
NEW YORK (Reuters Breakingviews) - James Gorman has greeted the new boss at Goldman Sachs by showing him a clean pair of heels. Morgan Stanley’s chief executive beat his own earnings target again in the latest quarter – and his downtown rival’s returns, too, after stripping out surprisingly lower pay. It’s yet more confirmation that Gorman has built a strong business worthy of commanding a higher multiple than its old adversary.
LONDON (Reuters Breakingviews) - It’s time for governments to accept a basic truth of the 21st century political economy: Children are an economic drag for parents. Political authorities can take some comfort, however. Low birth rates do not cause serious economic problems.
HONG KONG (Reuters Breakingviews) - Forget autonomous driving: The latest digital buzzword is medtech. Investors at last week’s annual RISE technology conference in Hong Kong talked up a coming healthcare artificial-intelligence revolution, and the hype is as palpable in Silicon Valley. Chinese firms are well positioned to take the lead.
NEW YORK (Reuters Breakingviews) - Investors are betting the fake-news swamp is left undrained. U.S. lawmakers on Tuesday grilled executives from Facebook, YouTube and Twitter about how they filter an ocean of content. Both the politicians’ questions and the company’s answers made any plausible bias-free approach seem remote. And the companies’ rising stocks suggest confidence that no serious regulation will follow.
LONDON (Reuters Breakingviews) - Symbolism can sometimes be overwhelmed by sheer financial power. That is the unfortunate fate of the trade deal the European Union and Japan signed on Tuesday. The accord between countries which account for nearly a third of the world’s GDP will create the world’s largest open economic area. It’s also a welcome reminder that trade barriers can fall as well as rise. But the benefits are dwarfed by the damage U.S. President Donald Trump could inflict with more tari
HONG KONG (Reuters Breakingviews) - Pinduoduo has a long last mile ahead of it. The unprofitable Chinese shopping app wants a valuation of some $20 billion in its upcoming initial public offering in New York. Sales are surging, but its social-networking e-commerce business model targeting consumers in far-flung areas of the People’s Republic could befuddle overseas investors.
NEW YORK (Reuters Breakingviews) - Netflix's growth stumble is a small gift to rivals. The streaming-video service attracted fewer subscribers than forecast in the second quarter, knocking more than $20 billion off its value. That will comfort Walt Disney and Comcast as they wage a costly battle for parts of Twenty-First Century Fox and Sky. Yet even a more sluggish Netflix remains far ahead in the race.
ASPEN, Colo. (Reuters Breakingviews) - Goldman Sachs is playing follow-someone-else’s leader. The $87 billion Wall Street firm is expected to announce early this week a career investment banker as its next chief executive. David Solomon comes from the side of Goldman that advises clients rather than the bit that trades securities and produced current chief Lloyd Blankfein. It further de-emphasizes the role that part of the business plays. It’s also something Morgan Stanley did almost a decade ag
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