Hugo Dixon: Capital markets union needs deregulation 15 Sep 2014 To deliver the EU’s goal of a single capital market will require new regulation in some cases. But in others, regulation put in place in the wake of the financial crisis will need to be revised, because it is getting in the way.
Catalonia a risk for 2015 whatever Scots say 15 Sep 2014 The Scottish referendum has spurred supporters of the Spanish region’s independence. A vote against secession, or a messy separation, will only slightly curb their enthusiasm. Catalans probably won’t get a vote this year. But at least Madrid is admitting it has a problem.
Dubai malls $1.6 bln IPO offers bling at a discount 15 Sep 2014 The world’s largest shopping centre lures customers with dancing fountains and a giant aquarium in the desert. Investors in its listing get strong growth prospects. The price range signals the political desire to ensure the Gulf’s biggest IPO since 2008 flies off the shelf.
What’s stopping a Heineken tie-up with SABMiller? 14 Sep 2014 The $44 bln Dutch brewer reportedly rebuffed an approach from its London-listed rival. Yet a deal could yield huge cost cuts and outwit sector giant AB InBev. Shareholders should ask if the price was wrong - or whether the Heineken family just wants independence at all costs.
Club Med auction returns to work refreshed 12 Sep 2014 Legal action delayed a low-ball MBO by China’s Fosun last year. A counterbid by financier Andrea Bonomi has now forced Fosun to hike its offer to $1.1 bln. Shareholders in the French holiday group have been vindicated for refusing to throw in the towel.
New Barclays chair ticks the right boxes 12 Sep 2014 John McFarlane has run a big lender and even has some investment banking experience. He also knows something about leadership change, having stepped in to run Aviva after the removal of its CEO. That equips him well to lead the needed dispassionate review of Barclays’ board.
Calculator: Does Scoxit = Brexit? 12 Sep 2014 If Scotland votes for independence, one of the knock-on effects could be on Britain’s membership of the European Union. This calculator quantifies the political risks posed by the Scottish referendum for the UK in Europe.
Credit markets are wrong to call Draghi’s bluff 12 Sep 2014 Prices of risky euro assets have barely moved since the ECB president last week promised to hoover up bank debt. Worries about Scotland and U.S. rates blur the picture. But investors seem to doubt the buying programme will work. Betting against the ECB could be costly.
Give Germany and China a break 12 Sep 2014 The two world leaders in trade surpluses are sometimes accused of importing too little. In fact, both run surpluses for good economic reasons. If trade imbalances are a problem, it’s because the financial system copes badly with the international cashflows they create.
Global glut means more pain for Europe’s refiners 11 Sep 2014 New plants in China and the Middle East will flood the world fuel markets, lifting output at the fastest rate since 1999. U.S. firms like Phillips 66, with access to cheap crude, can weather the storm. Rivals across the Atlantic, where margins are low, won’t be so lucky.
RBS/Lloyds moving plans leave key questions opaque 11 Sep 2014 Relocating Edinburgh’s two big banks to London would eliminate the risk of potential bailouts for an independent Scotland. But it creates crucial uncertainties over credit availability and cost for Scottish consumers. They deserve answers before they vote – and won’t get them.
Calculator: A little ECB QE can go a long way 11 Sep 2014 The European Central Bank will soon begin buying asset-backed bonds. Breakingviews’ build-your-own collateralised debt obligation shows how purchases could help banks free up capital and lower loan rates. The ECB might not need to take much risk to make the exercise worthwhile.
Morrisons shows Tesco that price cuts might help 11 Sep 2014 The smaller grocer joined Britain’s supermarket price war early. Half-year figures show tentative signs of success. That might embolden Tesco’s new CEO to follow suit. But by lifting dividends rather than conserving cash, Wm Morrison leaves itself little room for error.
Rich nations’ import crunch creates durable drag 11 Sep 2014 Six years after the fall of Lehman Brothers, the volume of goods and services bought by OECD countries is running 11 percent below long-term trend. That takes $600 billion a year of potential revenues from emerging markets, enough to curb their growth ambitions for several years.
Five changes for Ana Botin’s Santander 10 Sep 2014 She takes over a successful bank from her father. But the existing strategy needs a rethink. Capital looks low, the dividend policy is overly generous, and Brazil and America need work. None of these should be sacred cows. Botin’s objectivity will be paramount.
Ferrari spat raises expectations on Marchionne 10 Sep 2014 Boss Luca Cordero di Montezemolo is leaving Ferrari after two decades. A tiff with Sergio Marchionne, CEO of parent Fiat, made his position untenable. Fiat’s stock rise puts a lot of faith in Marchionne’s ability to extract greater value from Ferrari – possibly from a sale.
Finance and deficit foxes toothless in EU henhouse 10 Sep 2014 New European Commission head Jean-Claude Juncker has made the UK’s Jonathan Hill head of financial services and France’s Pierre Moscovici head of economic affairs. Both are surprising choices. But their capacity to promote domestic agendas has been deliberately constrained.
Edward Hadas: A holistic economics of healthcare 10 Sep 2014 A UK report suggests merging medical and other welfare programmes for the critically ill. The lessons are global. Recognising that poor health is often just one part of life’s troubles would bring better care. The greatest challenge is to make that care less bureaucratic.
Santander loses a leader and gains an opportunity 10 Sep 2014 The death of Emilio Botin, the Spanish bank’s patriarch, leaves a succession quandary since his daughter Ana may not be ready to take over. But the future of the euro zone’s biggest bank shouldn’t depend on a last name. It can now adopt modern corporate governance.
Botin’s swashbuckling hid a conservative streak 10 Sep 2014 He took many risks transforming a regional Spanish lender into a global giant. But it was his ruthless caution that enabled Santander to survive the ABN Amro wreck and economic catastrophe at home. That is the reason why Emilio Botin led the bank for as long as he did.