Italy budget gives with one hand, takes with other 1 Oct 2018 The new government has chosen to fight stuttering growth with tax cuts and a “citizens’ income”. Ditching austerity may boost sentiment and lift consumer spending in the short term. But the plan lacks a credible strategy to fight youth unemployment which is over 30 pct.
Data is new beat for transatlantic antitrust cops 28 Sep 2018 The U.S. DOJ’s Makan Delrahim and the EU’s Margrethe Vestager worry concentrations of personal information may be used to stifle competition. She has been the tougher so far, but the shared focus could hurt tech giants like Facebook and Alphabet that depend on data for profit.
The Exchange: Europe’s tech-slayer in chief 27 Sep 2018 Margrethe Vestager has taken on Apple, Facebook and Google as Europe’s antitrust commissioner, leaving behind huge fines and bruised feelings. She talks with John Foley about Silicon Valley’s missteps, Europe’s challenges and what she’s buying on Amazon – her latest target.
Drug watchdog’s Brexit spat is bad omen for London 25 Sep 2018 The European Medicines Agency is embroiled in a legal fight to scrap a lease on its UK headquarters. Its argument, that Brexit was an unforeseeable event, looks weak. But even if the regulator loses the case, its actions offer a grim prognosis for London office property.
Chancellor: The legacy of ultralow interest rates 10 Sep 2018 This first in a series of "Ten Years After" essays argues the bold monetary experiment that followed Lehman’s demise unleashed speculative manias, carry trades, populism born of inequality, capital misallocation and a China bubble that pose grave threats to the financial system.
EU arms media with a pea-shooter for Google fight 12 Sep 2018 Brussels’ proposals would make it easier for publishers to charge tech groups for using their articles. But given Google and Facebook hold all the market power, the plan would make little difference. Digital dominance calls for antitrust remedies rather than ineffective fiddling.
The Exchange: From slump to Trump 4 Sep 2018 In the first of our “Ten Years After” series, Peter Thal Larsen talks to Adam Tooze. The Columbia University history professor joins the dots from the 2008 crash to Brexit and U.S. elections, noting a declining faith in U.S. willingness to be the global lender of last resort.
Europe’s next bank cop faces fight on many fronts 3 Sep 2018 Daniele Nouy steps down as chair of the European Central Bank’s banking watchdog this year. Her successor will have to keep cleaning up bad debts and improving money-laundering controls. The bigger challenge, though, is addressing lenders’ chronic lack of profitability.
U.S. creeps into EU’s money-laundering blind spot 30 Aug 2018 A new anti-money laundering directive seeks to plug holes in Europe’s leaky banks. But the rules don’t address the core problem of relying on local supervision. Until the EU can establish an independent AML authority, the U.S. will continue to act as the bloc’s de facto top cop.
Anti-dollar push can fly in Beijing but not Berlin 24 Aug 2018 Germany’s foreign minister wants a payments system that’s independent of the United States. Europe will struggle to set it up given close transatlantic economic and financial ties. China is better placed and could demand that all who want to access its economy use an alternative.
Brexit plan B is an exercise in UK humility 23 Aug 2018 Britain’s contingency plans for leaving the European Union without an exit deal distil the economic risks of red tape, border delays, and financial disruption. While the scenarios aren’t novel, they underscore the extent to which the UK is relying on Brussels’ good will.
Italy’s bond fix idea resembles covert bailout 21 Aug 2018 The economic spokesman of the ruling League Party says the euro will collapse unless the European Central Bank limits the gap between euro zone countries’ bond yields to 150 basis points. That bar is too low and would give big spenders free rein to dodge hard budget decisions.
How Sergio Marchionne saved Fiat and Chrysler 30 Jul 2018 The automakers’ former boss, who has died at 66, rescued both from the wrecker’s yard. His push for breakups and consolidation also helped produce better shareholder returns than his main rivals. A new selection of Breakingviews columns offers a taste of his 14-year tenure.
EU bank fees stuck between politics and regulation 30 Jul 2018 Faced with ultra-low interest rates, the European Central Bank has urged banks to hike non-interest income, which accounts for 30 percent of revenue. Meanwhile French authorities are warning lenders about overcharging clients. The profitability squeeze shows no sign of ending.
Twitter purges users and shareholders alike 27 Jul 2018 The social network’s efforts to reduce spam, fake users and toxicity shrank active monthly users. Investors fled as well. That leaves both the platform and valuation more salubrious. Healthy returns will now depend on finding growth.
Tariff truce leaves EU carmakers stuck in low gear 26 Jul 2018 Volkswagen, BMW and Daimler’s collective value rose about $7 bln after U.S. President Donald Trump seemed to relent on auto tariffs. It’s a minor victory. Transatlantic peace may not last, while Trump’s trade battle with China will still prove disruptive for the German trio.
Hadas: U.S. radicals are a fit for EU mainstream 26 Jul 2018 Alexandria Ocasio-Cortez is considered ultra-left wing in her home country, but the New York politician’s economic leanings are standard centrist policies in much of Europe. Americans would gain from a globalization of their debates about healthcare, jobs, housing and education.
Trump and Juncker revive Obama-era trade goals 25 Jul 2018 The EU will buy more American soybeans and LNG while U.S. steel tariffs may be resolved. The two also want to cut barriers in services and harmonize rules. Such issues featured with the last White House. Revisiting them in a new guise offers hope but auto levies may still loom.
Automakers’ U.S. tariff fight heads down dead end 19 Jul 2018 The industry argues import duties would force Americans to pay an extra $83 bln a year for new cars. There’s a chance next week’s Trump-Juncker summit will yield a deal. But the U.S. president seems determined to punish countries for past trade wrongs, real or perceived.
Viewsroom: Europe puts Google in a bind 19 Jul 2018 The search firm can easily cover the EU’s $5 bln fine for using its Android phone system to stymie rivals. But the order to stop forcing handset makers to pre-install its software could clip innovation. Plus: Goldman Sachs and Tesla put lackluster corporate governance on show.