Cox: Amsterdam has first-world financial dilemma 13 Oct 2016 The city that invented the stock exchange and multinational may be Europe's ideal post-Brexit banking hub. Beyond fears about traders' Ferraris clogging bike lanes, however, Amsterdammers will need to overcome a bonus cap. This is where populism may win out over Dutch pragmatism.
ING’s partial London confidence vote stacks up 13 Oct 2016 The Dutch lender is moving 60 staff to the UK capital even as Brexit fears push rivals to ponder leaving. London's financial centre status and talent pool remain big draws. And by relocating only execution-focused traders rather than sales staff, ING caps its downside.
British retailers have leverage over Unilever 13 Oct 2016 The maker of Dove soap wants supermarkets like Tesco to pay more for its goods as the pound weakens. They can’t easily pass that cost on to shoppers. Grocers have two reasons to play tough: Unilever's 15 pct operating margin, and their access to the consumer.
VTB snub only hurts UK if American banks follow 11 Oct 2016 Russia's second largest lender may pull investment bankers from London because of Brexit. But VTB's existing base in Vienna is unlikely to suit other big banks. And the Wall Street giants London would actually miss are unlikely to make big logistical decisions in a hurry.
British PM’s attack on QE sends wrong signal 6 Oct 2016 Theresa May has criticised the effects of ultra-low interest rates and promised changes. She's right that monetary policy alone cannot revive growth. If the government wants to boost the economy, the solution isn’t to undermine the Bank of England - but to lift spending.
UK migrant clampdown will be self-defeating 5 Oct 2016 Companies may soon face name-and-shame policies that make it less appealing to hire skilled foreign workers. It's part of Theresa May's plan to cut migrant numbers. This is a harmful option for a country with poor productivity and a deficit of domestic expertise.
Sliding sterling is a long way from a crisis 4 Oct 2016 The pound has fallen to 31-year lows below $1.28. That’s hardly a disaster. Buoyant UK bonds and stocks suggest there are few concerns about Britain’s hefty budget and current account deficits. It would take a much steeper drop to worry Bank of England Governor Mark Carney.
Guest view: Where is the IMF on Greece? 3 Oct 2016 The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.
Hungary throws straw on Europe’s values bonfire 3 Oct 2016 Only a minority voted against EU migrant quotas. Yet almost no one voted for them. Like Britain’s Brexit supporters, Hungarian nationalists want both the benefits of free trade and control of immigration. Europe can resist, but the calls to blunt its ideals are getting louder.
Britain starts Brexit; now so might banks 3 Oct 2016 The UK's two-year process to leave the European Union will kick off by the end of March. Financial groups wondering whether to move operations now have the same uncertainty as before, only with a hard 2019 deadline. That could prompt the start of the big relocation.
Viewsroom: One hundred days of Brexit 30 Sep 2016 Oct. 2 marks 100 days since Britain’s vote to leave the EU. How has the economy fared, and will the City of London weather Brexit? Breakingviews writers discuss trade deals, financial services and the scale of the challenge facing Prime Minister Theresa May.
Dutch food IPO delivers a lukewarm debut 30 Sep 2016 Shares in Takeaway.com were up 6 percent on its first trading day, less impressive than UK rival Just Eat's 10 percent 2014 debut pop. True, European markets are having a bad day. But pricing was also punchy for a tech group that has yet to become top dog in some of its markets.
Capita faces trifecta of debt, delay and doubt 29 Sep 2016 The UK outsourcing company is finding out investors don’t like surprises in a usually predictable industry. Delays in a big Transport for London contract and post-Brexit jitters could see profit before tax be 13 percent below its target, and make its balance sheet look strained.
Italy can be bolder with its budget laxity 28 Sep 2016 Rome will delay its deficit goal next year, citing emergency factors like refugees. Brussels may quibble, but Italy needs growth, and a fiscal crunch could hurt Prime Minister Matteo Renzi's chances in a critical referendum. The leeway is too modest and fleeting to ensure either.
“Hard Brexit” less bad than hard uncertainty 26 Sep 2016 London’s financiers are fretting that the UK may advocate a clean break with the EU. That would hurt the City, but at least banks could plan to move elsewhere. For now, the problem is that the final result could still be benign - so there’s a big risk of jumping the gun.
Where Berlin’s voters go, Germany may not follow 19 Sep 2016 Angela Merkel's grand coalition lost power in the city, while right-wing populists won their first seats there. But an easing refugee crisis, and western Germans' loyalty to mainstream parties, suggest that the 2017 national election will bring less of an upheaval.
Tech giants don’t grow on European soil 16 Sep 2016 The region hasn't produced its own answers to tech disruptors like Facebook and Alibaba. That leaves the EU open to accusations of sour grapes when foreign companies like Apple are targeted for unpaid taxes. Regulation and fragmented markets explain Europe's failure to launch.
Telecoms and Brussels connect, for once 14 Sep 2016 The EU’s proposed new telecom rules will encourage investment in superfast broadband and coordinate spectrum auctions. The likes of WhatsApp will be subjected to tighter rules, though nothing they can’t handle. The snag is that it may take years for the rules to take effect.
Dear candidate: a letter to David Cameron 13 Sep 2016 The former prime minister is leaving the world of politics. His predecessor Gordon Brown now advises fund manager Pimco; Tony Blair before him took a role at JPMorgan. Cameron, who instigated Britain’s referendum on leaving the EU, may find the job market a harsher place.
MasterCard $19 bln claim, call centre edition 9 Sep 2016 The cards giant faces a 14 bln pound UK class action lawsuit for alleged over-charging. A lengthy legal fight may ensue, and reaching citizens numbed by claims companies' pursuit of mis-sold loan insurance may be tricky. Breakingviews imagines how a phone call might go.