“Because it’s France” no basis for EU budget rules 1 Jun 2016 Jean-Claude Juncker used that to explain why France wins more fiscal leeway. This might be worrying coming from the head of the European Commission, which enforces budget discipline, if it weren't already plain. Blindly applying rules is foolish, as is regular failure to do so.
ECB corporate bond buying is risky experiment 1 Jun 2016 The central bank's pledge to buy company bonds has caused a surge in issuance. As a result, market spreads - the premium investors demand over sovereign debt - are not falling. The unwanted side effects of the programme show why corporate credit markets are best left alone.
Japan is right to choose growth over higher taxes 1 Jun 2016 Prime Minister Shinzo Abe’s decision to delay a planned consumption tax increase is a sensible gamble. While the budget deficit may now fall more slowly, a hike could have jeopardised growth. This would have posed an even bigger risk to the long-term health of public finances.
Hermes shows scarcity is still a classic 1 Jun 2016 A Birkin handbag fetched $300,000 at auction in Hong Kong, a new world record - even though sales in the wider luxury sector are hitting the skids. The lesson for rivals is that rarity still elicits demand. That's cold comfort for luxury brands that have grown too big
Salesforce fluffs up cloud business at a high cost 1 Jun 2016 The online-software company agreed to pay $2.8 bln for e-commerce specialist Demandware. That may add some zing to slowing growth while boosting a heated rivalry with old-school Oracle. But the price includes a lofty premium of nine times estimated revenue, a sign of fog ahead.
Currency controls are grit in China’s M&A machine 1 Jun 2016 A spate of cancelled deals has raised questions about whether Chinese buyers are having trouble getting money out of the country. Though the People's Republic has tightened controls, officials can waive them. But circumventing rules takes time – putting bidders at a disadvantage.