Abu Dhabi $29 bln banking merger looks after No.1 4 Jul 2016 National Bank of Abu Dhabi - and the emirate's government - get a slight advantage in a merger with First Gulf Bank. Yet synergies leave both better off. The all-share deal will create the largest lender in the UAE and an institution capable of competing with foreign rivals.
UK’s tax cut goal: calm business, scare Brussels 4 Jul 2016 George Osborne has plans to cut the UK's already-low corporate tax rate to near-Irish 15 pct levels. It might stop domestic business jumping ship post-Brexit. But the prospect of a tax haven UK also acts as a bargaining chip to use in forthcoming exit negotiations.
Guest view: Brexit’s economic hit can be managed 1 Jul 2016 Britain's vote to leave Europe is a political problem before it is an economic one, write Giancarlo Bruno and Michael Drexler of the WEF. If politics are handled carefully, markets and investment can be calmed. A key challenge is to leave the City of London to do its job.
Britain joins China in investment limbo 1 Jul 2016 Heathrow Airport's expansion is on hold. Now the UK has voted to leave the EU, controversial or financially demanding decisions may be left dangling. There's a precedent in China, where a graft purge led to widespread dawdling. British inertia could be much tougher on growth.
London’s divorce from wider UK can only go so far 1 Jul 2016 The capital's new mayor is right to seek greater tax autonomy. But after a divisive vote in which Londoners wanted to stay in the EU, the trick is to do so without increasing divisions with the rest of the UK. Offsetting devolution with lower grants is a good place to start.
Britain tests catastrophe bounce back theory 1 Jul 2016 Doom-mongers overestimated how much the U.S. economy would suffer after Lehman's collapse in 2008 or the 9/11 attacks. Gloom about the UK leaving the EU is better judged. As Bank of England Governor Mark Carney acknowledges, policymakers face much tougher challenges this time.
Guest view: Changing the definition of growth 30 Jun 2016 It's time to reconsider the all-consuming focus on GDP to concentrate on what underpins development, argues David Cruickshank of Deloitte. Measuring social progress can help countries identify and improve the factors upon which economic stability and prosperity depend.
EU’s Italy bailout more political than prudential 30 Jun 2016 The EU has approved Italy's request for funding guarantees to avoid a bank collapse. They won't be used, and don't fill banks' capital holes. But the aid may help Prime Minister Matteo Renzi show he can do deals in Brussels – thus boosting his chances in October's vital referendum.
UniCredit plucks direction out of disorder 30 Jun 2016 The Italian bank named Jean-Pierre Mustier as chief executive, much faster than expected. The potential mess from the UK vote to leave the EU means it is not a good time to be rudderless. Mustier is internationally respected, and unlikely to shirk tough decisions.
BoJo exit is small net positive amid UK shambles 30 Jun 2016 Boris Johnson’s decision not to run as Tory leader adds to Britain’s political chaos. The next UK prime minister will most likely be EU-exit advocate Michael Gove or reluctant Remainer Theresa May. A Brexit U-turn now looks less likely - but the process could be more cordial.
Goldman’s BHS faux pas is cost of doing business 30 Jun 2016 The investment bank admitted its reputation was not enhanced advising retail magnate Philip Green on the sale of the now-bust UK retailer. Indeed it wasn’t. But courting the rich and colourful is just another kind of trade. Sometimes it brings revenue, sometimes it brings costs.
Believe bonds not stocks on Brexit damage 30 Jun 2016 Stocks have rebounded after the referendum, suggesting Britain’s prospects aren’t too grim. Yet falling gilt yields point to bleaker outcomes. In the absence of hard economic data, a post-vote slump in consumer morale supports the pessimistic thesis.
Britain’s best course of EU action is inaction 30 Jun 2016 It would be silly to push the button on leaving the European Union before Italy’s referendum in October or French and German elections in 2017. By then the UK will have more leverage, and voters a better idea what leaving looks like. Investors could be in for a dull interregnum.
Stress-test failures a warning for European banks 29 Jun 2016 Deutsche and Santander again botched the Fed's exams. It's embarrassing, though more surprising for the German lender. The problem for Europe's financial giants is they have to set up U.S. holding companies by July 1 – bringing more of them into a process as alien as baseball.
Post-Brexit generation war can still be avoided 24 Jun 2016 Older Britons voted to leave the EU, while younger ones wanted to stay. It’s a flashpoint in a wider global story of inter-generational strife. Unless some of the wealth is diverted their way, a brain drain of justifiably cheesed-off millennials will hit economic growth.
Monsanto’s bid defense withers on the vine 29 Jun 2016 The U.S. seedmaker’s disappointing third-quarter performance makes it hard to see how Monsanto can lure chemical group Bayer into sweetening an already frothy $62 bln offer. The suitor may be willing to look past a cyclical dip, but its negotiating position now looks stronger.
Adidas enlists House Kardashian in siege of Nike 29 Jun 2016 The German sportswear maker signed up hip-hop superstar Kanye West in a partnership just after Nike announced weak quarterly results. Adidas still lags its swoosh-logoed rival in market share and profitability. Adding Mr. Kim Kardashian to its ranks may help close the gap.
Hadas: Britain picks the wrong time to play games 29 Jun 2016 After the vote to leave the EU, politicians on both sides have taken pride in abdicating their responsibility. It comes not from respect for democracy, but for another British tradition: treating things as a game. Young people lost this round, but may even the score in future.
Dixons Carphone’s strong year offers weak comfort 29 Jun 2016 The British electrical goods and phone seller said like-for-like sales grew 5 percent last year. Its pro-Remain boss says leaving the EU may not be disastrous. The company does look strong relative to rivals like Darty, but the outlook for consumer spending is hugely uncertain.
Italy first to exploit EU’s new-found weakness 29 Jun 2016 Rome is pushing for a suspension of Brussels' state aid rules to help it bail out its banks, reports say. If Italy doesn't get some slack, its struggles could upend the euro zone. The risk is a weakened EU acquiesces to a host of carve-outs that compromise the single market.