Gulf investor pays up for Spanish shopping spree 14 Jul 2015 The ex-prime minister of Qatar is paying 1 bln euros, or a steep 57 times historic earnings, for a 10 pct stake in Spain’s largest department store. It values the equity at 10 billion euros. But El Corte Ingles owns prime real estate. The move may be a prelude to an IPO.
Barclays lacks options to avoid ring-fence pain 13 Jul 2015 The UK bank’s chairman says buying another lender could help it meet UK ring-fencing reforms. That might make the process quicker, but probably wouldn’t save much money. The bigger problem remains the risk of tangibly higher funding and capital costs.
BBC needs good pruning, not root-and-branch change 13 Jul 2015 UK lawmakers are questioning the broadcaster’s remit. Its 3.7 bln stg pseudo-state funding is anticompetitive. But while the BBC, like the monarchy and NHS, comes from another era, reformers need to be careful. A “bonsai” BBC – smaller and stronger – might be worth cultivating.
Hugo Dixon: Greek deal leaves bitter aftertaste 13 Jul 2015 Berlin was right to point out that Athens had lost Europe’s trust. But by pushing the Greeks so hard, Germany is also losing Europe’s trust. The summit’s eventual outcome is reasonably fair if tough. But both leaders, Merkel and Tsipras, need to work hard to rebuild trust.
Greek bank salvation may still have sting in tail 13 Jul 2015 Greece’s lenders are getting another 25 billion euros in bailout recap money. With a deal in place, more ECB crisis loans should also materialise. But the central bank may not provide them today, and a new Greek bail-in regime raises uncertainty for depositors.
Hugo Dixon: Syriza split best outcome for Greece 11 Jul 2015 PM Alexis Tsipras secured overwhelming parliamentary backing for his U-turn on austerity and reform, but his party has splintered. A new government, which is more serious about implementing whatever bailout programme is negotiated with creditors, will now probably be formed.
Hugo Dixon: Greece could do with a new referendum 10 Jul 2015 Given the havoc caused by the July 5 vote, it might seem crazy to advocate a second one. But Tsipras could this time campaign for Greeks to say “Yes”. If the people took his advice, sceptical creditors would have more confidence that the reforms would be implemented.
Thruppence: Sympathy for the devil in boardrooms 10 Jul 2015 Appointing a “contrarian director” to challenge management recommendations was the winning suggestion from an MBA student in a competition sponsored by Cambridge and McKinsey. Even some Breakingviews columnists who reject the proposal would like to see more devil’s advocacy.
Review: Dealmaking when lives are at stake 10 Jul 2015 Financiers like to compare their negotiations to military strategy. Yet the art of the deal matters far more when those talking also kill. Jonathan Powell’s “Terrorists at the Table” is a primer like few others, by a worldly ex-diplomat of stubborn hope. It’s also darkly funny.
Tsipras U-turn only lowers short-term Grexit risks 10 Jul 2015 Greece’s latest bailout plan accepts most of what its July 5 referendum rejected. Creditors will have to actively want a Greek exit from the single currency for it to happen now. Yet fresh austerity, capital controls and Athens’ weak reform record mean the truce may not last.
Spain picks smart route out of housing mess 10 Jul 2015 Madrid and Barcelona’s new left-wing mayors might have taken a more draconian approach to blocking evictions. Instead of interventionism, they have opted for improving support for those on the receiving end. With luck, Spanish bad debt investors won’t be the only beneficiaries.
Wreckage of failed German lender HRE offers value 10 Jul 2015 In the midst of the Greek crisis, Germany’s government is pursuing a 1.5 bln euro IPO of Deutsche Pfandbriefbank, a remnant of Hypo Real Estate, which collapsed in 2009. While still hobbled by the past, the lender is recovering. A knockdown price takes legacy issues into account.
Greek exit costs are more bearable than they look 9 Jul 2015 Euro zone governments are on the hook for losses worth hundreds of billions of euros if Greece leaves. But these losses can be held off-balance sheet, fiddled away by statistics or spread over decades. That may be why EU negotiators are becoming less guarded about the risks.
Rob Cox: The (bank) resolution will be televised 9 Jul 2015 Global regulators have made great progress preparing for the technical aspects of a collapse, and resurrection, of a major financial institution. What they need to spend more time on is ensuring they can effectively communicate the process to a world consumed by financial panic.
Barclays investment bank is hardest to turn round 9 Jul 2015 The UK lender, Credit Suisse and Deutsche Bank have all changed chief executives this July. Each has a distinct investment banking challenge. The Swiss bank is capital-light, Deutsche needs to cut costs. Yet Barclays’ shrinking top line suggests its revamp will be the toughest.
Guest view: Beware capital markets union hype 9 Jul 2015 The drive to improve European borrowers’ access to share and bond finance is worthwhile, says José María Roldán. But it can only fund half the economy at most. Making post-2008 bank reforms fit for purpose should be as big a goal.
Hugo Dixon: Tsipras has to break party or country 8 Jul 2015 The Greek prime minister’s victory in Sunday’s catastrophically timed referendum has reduced Greece to a meek supplicant suing for peace. Alexis Tspiras now has to choose between splitting his Syriza political party or taking his nation into an economic abyss.
UK Tories pinch some choice left-of-centre ideas 8 Jul 2015 Britain’s budget saw hikes to the minimum wage, a slowing of austerity, and hits for banks and non-doms. That isn’t the usual domain of British Conservatives. Yet deep welfare cuts, higher inheritance tax thresholds, and falls in business tax show the clothes-stealing has limits.
Barclays CEO vacancy will be a headache to fill 8 Jul 2015 Antony Jenkins has paid the price for weak investment bank returns and tactical missteps. Chairman John McFarlane can hold the fort. But a permanent replacement has to inspire a wary workforce and pull off a tricky revamp – just as UK ring-fencing rules make it all much harder.
Lloyds may be the victim of UK bank levy rejig 8 Jul 2015 The 2.5 bln pounds the bank tax raises from domestic players would suffer if HSBC relocates its head office. Chancellor George Osborne may use the upcoming budget to put the levy on a more stable footing. The least-bad option could be to shift the burden to UK-dependent Lloyds.