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Wednesday, 01 April 2015



Draghi’s QE is doing all it can for securitisation

31 March 2015

The ECB chief’s bid to boost asset-backed security markets has produced few new deals, and its purchase programme is small. But the falling cost of issuance is tangible enough, and regulatory hurdles are lifting. Besides, politics preclude Mario Draghi from buying riskier assets.

Models parade at the end of Marni's Autumn/Winter 2015/16 collection show during Milan Fashion Week

Yoox and Net-a-Porter make a striking combo

31 March 2015

Europe’s two biggest players in selling fancy clothes online are combining in an all-share deal worth about 3 bln euros. Both should gain, and size matters as Amazon eyes luxury. Yoox of Italy gets clear control and scale, while NAP owner Richemont keeps a toe in a growing sector.

A man speaks on his phone on a sunny morning as he walks past the columns of the Bank of England in the City of London, May 19, 2014.

BoE will test banks for deflation ECB didn't see

30 March 2015

The darkest scenario of British banks’ annual stress tests sees prices fall for over a year at home, and nearly four in the euro zone. Last year the ECB didn’t factor in deflation risk at all. The Bank of England is obviously freer to consider the possibility of its own failure.

A visitor walks past an alcohol stand during the TFWA (Tax Free World Association) exhibition in Cannes, southeastern France.

Dufry pays up to become duty-free heavyweight

30 March 2015

The Swiss travel retailer will pay 3.6 bln euros with debt, or 13.8 times reported 2014 EBITDA, for Italian-listed World Duty Free. That’s bold as Dufry digests another big deal. Despite a big equity-raising backed by wealth funds, debt will hit a punchy 4.3 times EBITDA.

A giant LED illuminated ball is pictured at the Philips booth at the IFA consumer electronics fair in Berlin

Philips earns credibility with lighting selloff

31 March 2015

The Dutch group sold 80 pct of its lighting components unit for $2.8 bln. An Asian tech fund paid a surprisingly high 1.65 times last year’s sales. Buyout firms’ hunger for corporate cast-offs helped lift the price. A bigger test looms: splitting off the main lights business.

Hugo Dixon

Hugo Dixon: Tsipras needs rupture with far-left, not Brussels

30 March 2015

Even if Greece avoids imminent default, its prime minister will have to break with radical allies before Athens’ position in the euro zone is secure. It is not clear he has the courage to do so. But such a move would make far more sense than a break with euro creditors. 

A man carries a shopping bag in the colours of the German national flag in downtown Hanover June 26, 2012.

Hefty German wage hikes make ECB’s life easier

30 March 2015

German unions are proving a key ally for Mario Draghi. Civil servants and chemical workers have followed metalworkers in securing pay rises significantly above inflation. Real wages will keep rising, fuelling a consumption-driven recovery and softening deflationary forces.