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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Portugal’s eligibility for ECB bond-buying hangs on the rating of Toronto-based agency DBRS. Effectively, the ECB has outsourced the decision of whether to cut off a country. It works to a point: it’s hard to imagine the ECB abandoning Italy or France whatever their ratings.
The French pharma group’s $9.3 bln bid for cancer drugmaker Medivation is opportunistic and logical: the target’s shares have fallen on U.S. pricing fears, and Sanofi needs to diversify. But it’s not cheap, and other suitors lurk. Sanofi will struggle to finish the full course.
The ECB’s money printing has squashed interest rates for countries and companies, even in the south. Yet the difference in borrowing costs between riskier sovereigns and Germany is rising. Bond-buying has not made investors insensitive to risk. It may not prevent default either.
- CoCos can work, but the fix will be painful
- Germany should buy into Italy’s bad bank
- When Mario Draghi buys, it's time to sell
- Rome's Atlas bank fund takes on ever bigger burden
- Time for banks to go cold turkey on sovereign fix
- Italy’s bad bank needs a fireman’s lift from Renzi
- Italy's bank rescue is a risky Plan C