Neil Unmack is a Reuters Breakingviews columnist based in London. He covers credit markets, hedge funds, and Italy. Previously he was a corporate finance reporter at Bloomberg News in London. He started his career as a financial journalist in 2001 at Euromoney Institutional Investor, where he covered structured finance for EuroWeek magazine. He was educated at Eton College and Oxford University, graduating with a first class degree in modern languages. Follow Neil on Twitter @unmack1
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The central bank will buy sovereign debt – but each national government may have to set aside provisions in line with their own risks, Reuters says. It may secure German approval. But it would also weaken quantitative easing, and highlight a fragmenting euro zone.
The pharma group has suffered two big drug failures. The setback over Alzheimer’s is no shock—the disease has been a money loser for big pharma. A second knock in Roche’s core cancer franchise hurts more. The failures will increase pressure on Roche to deploy excess cash.
Euro zone banks drew just 130 billion euros of four-year loans from the ECB. The modest take-up makes sovereign purchases more likely: the ECB will need to buy sovereign debt to reach its stated balance sheet target. While QE is increasingly priced in, the challenges aren’t.
- Fiat tries to make convertible a mandatory buy
- Erste first to show risks in new bank hybrids
- Greece tries risky step to dispel uncertainty
- Italy rating cut moves euro endgame a notch closer
- Pharma's dying assets lack M&A remedy
- History may frown on Great War loan buyback
- ECB could easily manage QE sovereign risk