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A virtual currency fund IPO means there will now be an index tracker for almost everything. Except that financial engineers have ignored the most important asset class of all. No more. Say hello to the Breakingviews Dollar Trust. It makes holding cash as easy as trading a stock.
Cyprus bond swap is good publicity, bad economics
The creditor banks of Cyprus “voluntarily” exchanged 1 bln euros worth of sovereign debt at cheap rates. That lowers the bailout bill for the euro zone, but the burden falls unevenly on the country’s banks. Exchanging all creditors’ debt would have been fairer - but messier.
India’s aspiring banking moguls fail to impress
A few strong contenders aside, the 26 applicants for a handful of new banking licenses are local finance companies. Giving these shadow lenders access to retail deposits while saddling them with harsh licensing rules could backfire. India needs more banks, but not more weak ones.
China index: Weaker growth on weaker foundations
China’s economy remains gloomier than this time last year as lower export growth and rail freight volumes make a grim follow-up to poor PMI readings. Sales of property, luxury liquor and posh cars prevent a steeper fall, but these are not the bright spots China needs or wants.
Third time lucky looks a stretch for Eike Batista
The Brazilian billionaire’s EBX group may soon crash. He bounced back from financial disaster before. But now he’s wiped out $50 bln of value in three years after borrowing oodles to expand quickly. Investors share some blame. But now they’ll surely be too wary of Batista.
Nokia gets options with cheap NSN buyout
The Finnish mobile-phone maker is buying Siemens out of their equipment joint venture for a bargain 1.7 bln euros. Nokia could later float or sell NSN at a better price. Meanwhile, owning all of this restructured, profitable unit shores up Nokia as it struggles in smartphones.
UK's big build dreams still dogged by past binge
There is real austerity in some parts of the UK budget, but not enough to keep total spending from rising. A cap on welfare spending won’t reverse the huge previous rise. The government’s talk of 100 billion pounds in infrastructure projects sounds bigger than the pinched reality.
FEATURED VIDEO
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Breakingviews: Banks weathering the storm?July 2 - Jeffrey Goldfarb and Antony Currie discuss upcoming second-quarter results for the world's biggest banks and whether they can keep up with the volatility.Video
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The new strategy to pass gun controlDan Gross, Brady Campaign to Prevent Gun Violence president, says the Machin-Toomey background check legislation will return and he believes his group may have a good chance for success in the House.Video
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Abe’s Economic Experiment
Edited By Peter Thal Larsen
Breakingviews has published a selection of books for purchase and download.
Predictions 2013: Exploring the year ahead.
Edited By Robert Cole
