Unilever exit is double setback for London 15 Mar 2018 The Dove soap maker has picked Rotterdam as its global base in a corporate streamlining. Scrapping its Dutch trust office will help reassure investors that the move is not a takeover defence. However, the reshuffle may also rob the FTSE 100 index of one of its larger members.
UK’s best Russian riposte is hiding in plain sight 14 Mar 2018 Prime Minister Theresa May is expelling diplomats after Moscow ignored her ultimatum to explain its role in a nerve-agent attack in England. That is a fairly ineffective punishment. Better to use existing UK anti-corruption laws to target high-profile Russians with Kremlin links.
Viewsroom: Trump slaps tariff fear on markets 8 Mar 2018 Imposing levies on steel and aluminum has lost the president his economic adviser, ex-Goldman No. 2 Gary Cohn. That has shocked investors out of complacency. Also: Italy’s elections leave fringe parties in charge. And big deals may be back on the agenda for the mining industry.
Trump tariffs risk more than just a new trade war 7 Mar 2018 Europe will retaliate if U.S. President Donald Trump slaps tariffs on steel and aluminium imports. A transatlantic trade fight is just one danger. By invoking a little-used national security loophole, Trump is setting a precedent of how to subvert international commerce rules.
Election leaves Italy with only radical options 5 Mar 2018 An anti-establishment surge has crushed the chances of another moderate government. The maverick 5-Star Movement or the hard-right League are best placed to lead a coalition. The winners share some goals. But personal rivalry will make it hard for them to work together.
Euro zone reform faces green and red lights 5 Mar 2018 Germany’s new ruling coalition has cleared the way for reforms to strengthen the single currency area. Yet proposals to backstop banks and governments remain contentious. Italy’s new government adds uncertainty. With the ECB’s firepower waning, delay may prove costly.
Germany gets a chastening exit from HSH Nordbank 28 Feb 2018 The public sector owners of the battered lender are selling out for 1 billion euros, after pumping in 10 times that. Despite restructuring, HSH remains a ropey asset. But Cerberus and its fellow acquirers are buying in at a low enough level to make a healthy return.
Corbyn turns soft Brexit into hard politics 26 Feb 2018 The Labour leader says Britain should stay in a customs union when it leaves the EU. Though his Brexit vision is fuzzy, it may appeal to voters and galvanise a parliamentary challenge to embattled Prime Minister Theresa May. UK political instability looks set to step up a gear.
Latvian bank failure raises 8 bln euro question 26 Feb 2018 That’s the amount foreigners have deposited in the Baltic nation’s lenders. Now ABLV, the third-largest bank, is being wound up following U.S. money-laundering charges. The cost to Latvian taxpayers is limited. Containing the fallout for the overall banking system will be harder.
Latvia exposes euro zone’s money-laundering holes 20 Feb 2018 The U.S. has accused the country’s third-largest bank of busting North Korean sanctions. This triggered outflows and an ECB payment freeze. Euro members Malta and Cyprus have also faced criticism for poor oversight. The bloc needs to rethink the policing of its weakest links.
Spain’s ECB victory is really a win for Germany 19 Feb 2018 The only person left in the race to become European Central Bank vice president is Spanish Finance Minister Luis de Guindos. It’s thus likely that the top job will go to a northern European in 2019. That will please Germans keen for an end to unorthodox monetary policies.
How Corbyn could grab British water at little cost 19 Feb 2018 If the Labour leader nationalised utilities at market values, the UK’s gross debt would rise by 80 bln pounds. Yet a not-for-profit model could achieve similar ends at little direct cost to taxpayers. The damage depends on how clumsily a Corbyn government handles the transition.
German politics has become Europe’s weak link 15 Feb 2018 The country’s Social Democrats will ballot members on their coalition deal with Chancellor Angela Merkel. Party infighting means approval is not assured. A rejection could lead to a new vote or a minority government. Either would make it harder to push through European reforms.
Italy’s electoral race has a dark horse 15 Feb 2018 Opinion polls suggest the March 4 poll will produce a conservative or broad right-left government that will maintain the status quo. But new voting rules make predictions harder than usual. A post-election alliance of anti-EU parties is improbable – but not impossible.
Voter frustration is Italian election’s trump card 12 Feb 2018 Five years of centre-left governments are ending on a high: growth has returned and 1 mln more Italians are employed. Yet prosperity is unevenly distributed and key economic reforms poorly understood. The country's Economy Minister walks Breakingviews through his priorities.
Hadas: Brexit trial could go worse than expected 9 Feb 2018 Are economists biased against Brexit? If anything, their estimates, which rely on imperfect precedents, are too optimistic. Leaving the EU will impair UK growth by hitting long-term confidence, institutional strength and workforce quality – all hard to capture in a spreadsheet.
The Exchange: Italy’s finance boss 8 Feb 2018 Pier Carlo Padoan, who has run Rome's Ministry of Economy and Finance for the past four years and under its last two prime ministers, says Italy must continue economic reforms no matter who wins elections in March. Padoan also predicts no "Italian surprise" at the polls.
Europe is biggest winner of German coalition deal 7 Feb 2018 Chancellor Angela Merkel has offered the Social Democrats the finance ministry to persuade them to join a government. Even so, the SPD rank and file may not like it. But the accord implies less fiscal rigour, which could help forge better ties across the European Union.
EU fund grab is smart politics but dumb regulation 5 Feb 2018 New rules could make it harder for London-based managers to oversee continental funds after the UK leaves the European Union. That would shift jobs and weaken Britain’s finance industry. But it would also restrict EU customers’ choice of investments. It’s a bad idea.
Brexit leak nudges UK towards softer withdrawal 30 Jan 2018 State papers reportedly show the country will lose in every scenario after it leaves the EU. That will inflame tensions within the Conservative Party and government. Sadly for anti-Brexiteers, the upshot is more likely a less abrupt schism than a scrapping of the entire process.