Canadian $3.6 bln grocery deal puts price on fear 2 Oct 2017 Metro is buying pharmacy chain Jean Coutu. The value creation from the proposed deal, though, is less than the premium being paid. That doesn’t sound good for Metro investors – but threats from Amazon and a rapidly consolidating sector might have been worse.
Central bankers’ superpowers are looking spent 2 Oct 2017 Between taming inflation, fighting the financial crisis and averting a breakup of the euro, monetary policymakers acquired an aura of omnipotence. Their responsibilities are growing and their mandates have turned into a fetish. A painful collision with reality is overdue.
Las Vegas tragedy strikes a U.S. inured to outrage 2 Oct 2017 Casino stocks fell and gunmakers’ jumped after the worst shooting in U.S. history left at least 50 dead. Horrific as it is, the incident is unlikely to impact gun laws, markets, political debate or voters’ minds. A deeply divided country will find it hard to mount a response.
Catalonia crisis is painful distraction for Spain 2 Oct 2017 Despite violent police intervention, the region’s vote to leave Spain is unlikely to trigger a breakup of the country. Yet the political unrest has damaged an already weak government and could strain public finances. Spain’s recovering economy needs a bigger political discount.
Political fiddles skirt UK housing market problem 2 Oct 2017 The Conservative government is putting up more cash to help homebuyers, while the Labour Party proposes rent controls. Both policies risk hurting those they are supposed to help. Lasting reform means pushing down house prices; no politicians seem ready to pay the political price.
Home delivery boom kicks off property scramble 2 Oct 2017 Singapore-listed Global Logistic Properties is buying warehouse owner Gazeley for $2.8 bln. It’s the third big European logistics deal this year as a boom in e-commerce revives the once-sleepy sector. Sovereign wealth and pension funds will increasingly follow consumers’ money.