BREAKINGVIEWS
Global inflation slide stirs the bogeyman
In theory, inflation should have picked up when central banks cranked up the printing presses. Instead, it’s slowing down. In the U.S., it’s nearly 1 percentage point below target. Policymakers now have to start worrying about their worst enemy – deflation.
A.G. Lafley will be more proctor than gamble
Bringing back the former P&G boss won’t ensure the Pampers-to-Scope giant reclaims former glory. His last decision – of a successor – flopped. But unlike the turnaround facing J.C. Penney’s returning ex-CEO, Lafley’s job is somewhat simpler: oversee cost cuts and brand building.
Spanish banks get spruced up for banking union
The Bank of Spain says the country’s lenders face up to 10 bln euros of new provisions against ropey restructured loans. They may not need extra euro zone capital, but it will make them better placed to pass rigorous stress tests before they get supervised by the ECB.
China-U.S. audit truce wisely avoids big issues
Auditors in China can no longer claim that “state secrets” prohibit disclosure to the U.S. watchdog. That should keep Chinese companies from being banned in U.S. markets. There are open questions about sovereignty and state capitalism, but those are fights for another day.
Yamal LNG set to inflict pain on Gazprom
A gas project in Russia’s far north could crack the state giant’s export monopoly. The Kremlin is expected to decide soon whether to allow Yamal LNG’s backers to ship its production abroad. It may only approve sales to Asia. But even limited exports would hurt Gazprom.
Frackers ignore German beer angst at their peril
Germany’s brewers want to make fracking verboten. In the U.S., the gas drilling technique’s economic benefits trump environmental concerns. Whether it’s the British countryside or German lager, threats to cultural touchstones will hold back a similar boom in Europe.
Microsoft stages nebulous Chinese comeback
The software titan has for years been stuck in a piracy trap in China - many use its products, and few pay. Cloud-based services like Windows Azure are less prone to misuse. This time there are new problems: fierce competition, and politicians that favour domestic rivals.
Soccer success mirrors Germany's secret strengths
For the first time ever, both teams in Europe’s biggest championship will be German. In 2000, the country was the sick man of the pitch. The sport’s resurgence, like the economic renaissance, relied on the social market economy and the ability to push through structural reforms.
Bank governance stigma can be fixed lickety-split
It’s easy to see how Jamie Dimon would consider an independent chairman at JPMorgan a demotion for him. If peers like Lloyd Blankfein hold both top jobs, CEOs only may feel like second-class citizens. U.S. financial regulators could turn the division of labor into a virtue.
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Goldman gives itself near-clean bill of health
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Apax buyout tailored to avoid J Crew lapses
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Nomura shows second tier isn't always second rate
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Jonathan needs good luck to keep Nigeria moving
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SABMiller faces expectations on a daunting scale
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New Treasury boss Lew faces steep learning curve
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Even second-rate IMF waffle could help UK economy
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Buoyant markets too sanguine on end-of-QE threat
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Security is diversion in $20 bln-plus Sprint fight
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The Great Stagnation spawns Great Confusion
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Slovenia can delay its bailout for another year
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Japanese stocks join the global risk parade
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Blame Japan’s debt on companies, not the state
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The refining business may yet pay off for Delta
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Solar subsidies don't merit costly trade war
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UK's bank capital tsar all bark and no bite
