Guest view: Where is the IMF on Greece? 3 Oct 2016 The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.
Hungary throws straw on Europe’s values bonfire 3 Oct 2016 Only a minority voted against EU migrant quotas. Yet almost no one voted for them. Like Britain’s Brexit supporters, Hungarian nationalists want both the benefits of free trade and control of immigration. Europe can resist, but the calls to blunt its ideals are getting louder.
Bill Gross’s firm finds investor-pleasing trade 3 Oct 2016 Janus, home of the famed bond manager, is merging with the larger UK-based Henderson to create a $6 billion group. Even friendly M&A is risky for asset managers, but industry growth is weak and scale benefits massive. The rapturous market reaction won't be lost on other groups.
ING gives EU banks a map to profitability 3 Oct 2016 The $48 bln Dutch lender is cutting 7,000 jobs, which should help it preserve its return on equity lead over European peers. A striking aspect of the plan is to plough most of the savings into financial technology. That signals that banks need to get creative to battle low rates.
Britain starts Brexit; now so might banks 3 Oct 2016 The UK's two-year process to leave the European Union will kick off by the end of March. Financial groups wondering whether to move operations now have the same uncertainty as before, only with a hard 2019 deadline. That could prompt the start of the big relocation.
Golden Chinese shopping spree will tarnish soon 3 Oct 2016 China's "Golden Week" holiday will see mainland tourists splurging in bazaars from Milan to Macau. Retailers should enjoy it while it lasts. Tax cuts will make shopping at home less painful, and younger Chinese prefer experiences to handbags. That will cap future growth.
India illustrates fraught tax amnesty economics 3 Oct 2016 Citizens have declared cash and assets worth $10 bln. A high penalty means New Delhi will pocket almost as much revenue as Indonesia, where locals have just declared $250 bln in a similar scheme. In the long term, using more carrot and less stick is probably more valuable.
Colombia’s “no” to peace will backfire on economy 2 Oct 2016 Voters on Sunday narrowly rejected a deal with FARC rebels that aimed to end five decades of civil war. The result shreds the credibility of the president and pollsters. The desire to be tougher on the rebels proved stronger – just – than the appeal of a needed peace dividend.