Swiss tax reform will earn it EU brownie points 20 May 2019 Voters in the Alpine nation have backed a plan to axe fiscal favours for some 24,000 multinationals. Some companies may now find it less appealing to set up shop in Switzerland. But the move averts the bigger threat of it ending up on a European Union list of tax havens.
Guest view: An EU election that really matters 20 May 2019 The vote that takes place across the European Union this week is, more than ever before, one on the bloc's future, writes Fabrizio Pagani of Muzinich & Co. And the outcome may catalyse change in countries that have an unstable political outlook, such as Italy and Britain.
Facebook investors could benefit from a breakup 10 May 2019 The $532 bln group’s co-founder wants U.S. regulators to undo its WhatsApp and Instagram deals. Those units are hard to value and spinning them off would be costly. Yet valuations of peers like Snap and Twitter imply that Facebook could be worth 20% more once carved into three.
The Exchange: Margrethe Vestager 7 May 2019 The EU’s antitrust commissioner is famous for imposing multi-billion-dollar fines on Alphabet and Apple. She joins Liam Proud and Peter Thal Larsen to explain why combatting the greed, power and fear that stifles competition is even more crucial in a data-driven world.
Loose credit helps LBO funds slay sacred debt cows 30 Apr 2019 Lenders to private equity managers are increasingly giving up protections. Loan investors more used to demanding and receiving better terms than bonds are now accepting similar conditions – and, in some cases, even worse ones. That could lead to a nasty shock.
The Exchange: Marco Polo 2.0 23 Apr 2019 Italy irked the United States by backing Beijing’s grand infrastructure plan. The country needs to improve ties with the People’s Republic to sell more wine and other exports, says Rome’s top China expert. Overcoming trade barriers will, however, require an EU team effort.
Why open banking remains a closed shop 23 Apr 2019 It’s over a year since the UK and EU gave tech groups access to account data, supposedly boosting competition. Yet glitches and a narrow focus on current accounts mean the measures are barely used. Change requires more tech-savvy financial institutions – or more regulation.
Climate risk gets the right kind of oversight 18 Apr 2019 Central banks presiding over almost half the planet’s GDP plan to treat global warming as a threat to financial stability. It’ll add heft to existing pressure from investors and make it harder for companies and their lenders to ignore the longer-term impacts of climate change.
IPOs will remain endangered species in Europe 16 Apr 2019 Despite a rebound in equity markets in the first quarter, the number of listings collapsed year-on-year. Bankers of an optimistic nature are focusing on a recent uptick in activity. That’s not enough to offset a lengthy list of reasons to keep sitting on the sidelines.
Brexit extension lets UK remain in name only 11 Apr 2019 Postponing its EU exit to October 31 avoids a chaotic departure and gives the country more time to find a way out of its impasse. That probably requires a new government or another referendum. While Britain is still an EU member, it has been reduced to the role of a spectator.
ECB sop to banks will only help at the margin 10 Apr 2019 President Mario Draghi is considering ways to ease the pain that negative policy rates inflict on banks, such as tiered deposits in Japan and Sweden. Savings-rich German lenders would benefit most. But any earnings boost would be modest and does nothing to remedy high costs.
The Exchange: Laurence Boone 8 Apr 2019 The yellow-vest protests are fizzling out in France, but the inequities that fueled them haven’t gone away. That it takes six generations for the poorest to reach the middle class is a big one. The OECD chief economist discusses this, Brexit, Italy and more with Rob Cox.
Theresa May’s soft-Brexit pivot has three barriers 3 Apr 2019 The prime minister offered to strike a deal with the opposition Labour party to avoid crashing out of the EU. Its leader Jeremy Corbyn may refuse to help, her own party might revolt, and Europe could reject another extension. A chaotic Brexit is less likely, but still possible.
Four lessons of Theresa May’s third Brexit defeat 29 Mar 2019 The prime minister’s deal for leaving the EU is almost certainly dead after parliament rejected it again. A different compromise is feasible but hard to agree. That makes a long delay, and maybe a general election, more likely. But a chaotic departure may still happen.
“Japanisation” of ECB will blight Europe’s banks 25 Mar 2019 Weak economic activity is raising the chances of the European Central Bank copying its Japanese counterpart, which has kept rates ultra-low for two decades and adopted ever more radical measures to boost inflation. Lenders in Japan show European peers the heavy toll that takes.
Brexit extension sharpens Britain’s choices 22 Mar 2019 European Union leaders gave Theresa May two more weeks to agree a plan for leaving the bloc. But they also dangled the possibility of a longer delay. For all the shuffling of dates, Britain’s options remain basically the same as before, including the risk of a chaotic departure.
Google fines make case for tougher antitrust curbs 20 Mar 2019 Europe has hit the Alphabet unit with its third penalty in less than two years, taking the toll to over $9 bln. That sum pales against the $600 bln the firm has added to its market cap since the investigations began in 2010. Both sides are being pushed to a bigger showdown.
Spotify pitches Apple lament to easy EU audience 14 Mar 2019 The Swedish music service filed a European Commission complaint alleging that its rival’s payments system hurts competition. It may take years, but the EU has pursued similar cases against the likes of Google. It’s also well timed given the growing backlash against U.S. Big Tech.
Hadas: Share buybacks aren’t worth defending 13 Mar 2019 Goldman does just that in a new report. They are almost like dividends, but they are sneakier in several ways. Their recent significance shows executives gaining power while small shareholders and taxing governments lose. If tighter rules kill them off, they would not be missed.
Brexit tips Ireland into economic purgatory 11 Mar 2019 Ten years after a devastating recession, the Emerald Isle is buoyant again. Banks fleeing London jostle with tech firms for Dublin office space. But the risk of a disorderly Brexit is hurting investment and confidence across the Irish Sea – and fuelling fears of renewed violence.