Nicholas Lardy’s new book describes a China in which the state is retreating. He has the numbers to demonstrate the private sector’s steady gains, but official statistics are deeply misleading. In the PRC, the public-private line is blurred by the triumph of crony capitalism.
The Madrid beatification of an early leader of the Catholic group gathered a big crowd and high-powered sponsors. Critics say Opus has undue influence in its homeland. But its clout has declined in modernising Spain. Still, a strong work ethic creates professional opportunities.
The Financial Stability Board is mulling a common bail-in mechanism for cross-border banks. A draft plan suggests that national regulators don’t trust each other enough to maintain the industry’s flexible funding structures. It might make banking safer - but costlier.
A former Breakingviews columnist gives an account of what it’s like to find out the latest international health crisis patient lives down the road. After all the claims of American, and Texan, exceptionalism it’s a wake-up call for all developed economies to heed.
The drought-prone Texas city plans to spend about that much on a project for moving H20 140 miles. It’s the controversial next leg of a strategy for securing enough water to keep business in the home of the Alamo. It’s also part of a national battle for economic survival.
The CEOs of London Stock Exchange and LCH.Clearnet worry that Europe’s new MiFID II rules for financial markets will “lose their teeth.” But crude implementation of complex regulation could damage market liquidity, innovation and stability, warns Paul Swann of ICE Clear Europe.
Japan’s government shouldered the pain of corporate deleveraging, and the economy became comatose. South Korea crammed its debt onto households with only marginally better results. Now it’s China that has a problem with high leverage. The race is on to find a different strategy.
The euro zone banking union was meant to start with a robust bank solvency test. Yet national regulators have successfully lobbied the ECB to count deferred tax credits as capital. That restores the state/bank dependency the single banking supervisor is trying to sever.
The tens of thousands of protesters occupying Central send a disturbing message to authorities: unrest can be both disruptive and peaceful. That resonates far more than images of violent conflict. Little wonder China is trying to make sure citizens look the other way.
Italian prime minister and “scrapper” of Roman politics Matteo Renzi has angered his own camp with his labour reform plans. If his Jobs Act passes, it will boost growth and help the ECB maintain loose monetary policy in the meantime. But many tough fights lie ahead.