U.S. carbon emissions crackdown is well timed 2 Jun 2014 Obama’s proposed steep cuts in power plant pollution are bad news for the coal industry. But unlike Germany’s expensive retreat from nuclear power, the U.S. has cheap gas to fall back on. America’s shale dividend will offset any costs of going greener – at least at home.
Valeant urges $54 bln deal with carrot, two sticks 2 Jun 2014 The acquisitive pharma group raised its offer for Allergan again, if the Allergan board cooperates. Meanwhile hedgie Bill Ackman is threatening to unseat six directors – and Valeant could yet decide to go fully hostile. But questions over Valeant’s own stock remain its weakness.
Etihad’s Alitalia grab not as loony as it looks 2 Jun 2014 After spending another 300 mln euros on struggling Air Berlin, the Abu Dhabi carrier gives Italy’s stricken flag carrier another lease of life. Acquiring yet another minority stake in a loss-making peer does make sense. And Etihad buys much-needed political clout in Europe.
Bank of Cyprus is bank of choice for EU über-bulls 2 Jun 2014 Half the loans of the last major Cypriot bank are in arrears. Two-fifths of its funding comes from central banks. Yet Bank of Cyprus may still be able to secure foreign capital after the EU stress tests, if needed. If so, that would mark a new high in tapering ebullience.
Hugo Dixon: EU needs more non-bank finance 2 Jun 2014 Banks are on the back foot and won’t be able to fund growth on their own. Non-bank finance has to take up the slack. The ECB and Bank of England have identified the importance of securitisation. Similar leadership in other non-bank areas, such as equity capital, is required.