Assault on UK privilege has many possible targets 14 Jul 2016 Theresa May wants to focus on more than the "privileged few". If Britain's new prime minister is serious, the most glaring disparities are in pensions, savings, housing and infrastructure. Action in these areas would go some way to healing north/south and young/old rifts.
Deutsche Boerse has case for go-slow on LSE merger 14 Jul 2016 Almost all the UK exchange group's shareholders voted in favour of merging with its German rival. Index funds are slowing Deutsche Boerse's process. Still, local takeover regulations and post-Brexit difficulties in selling the deal mean it's in DB's interests to take its time.
New UK cabinet best suited to deliver Brexit-lite 14 Jul 2016 British Prime Minister Theresa May has appointed the pro-EU Philip Hammond as chancellor. Brexiteers Boris Johnson and David Davis also have major roles. But the appointments imply a post-EU Britain will look less different to the one that preceded it had others been in charge.
Positive earnings surprise marks peak Daimler 12 Jul 2016 The German carmaker performed much better in the second quarter than analysts had expected, beating operating profit forecasts by more than 5 percent. Unfortunately, it could be Daimler’s last good news for a while. A Brexit-related slump will dent car sales in Europe.
Cash could trump complexity in Corriere bid 11 Jul 2016 The two camps bidding for Italian media group RCS have both upped their offers. Cairo is offering a bit more for the owner of Corriere della Sera, but mostly in highly-valued stock. In volatile markets, investors may choose a less complex bid headed by Andrea Bonomi over value.
Workers on boards only small step in UK governance 11 Jul 2016 Theresa May, perhaps Britain's next prime minister, wants employees among company directors. Germany's 40-year-old union-heavy "Mitbestimmung" model - which goes further than the UK would - hasn't been the disaster predicted by industry, but it also has its downsides.
Spain’s economy betrayed by its index 11 Jul 2016 Spain's IBEX 35 has underperformed European peers even though the economy is performing better. The main reason is that the bank-heavy index is exposed to emerging markets and political shocks like Brexit, while small companies in other sectors struggle to reach the big league.
Remittance risk adds to east European Brexit blues 11 Jul 2016 Sterling's slump has depressed the local currency value of remittances that migrants from central and eastern Europe send home from Britain. This is a worry for countries like Poland or Romania. Their current account balances are particularly flattered by such transfers.
Goldman flaunts tin ear with Barroso hire 8 Jul 2016 The U.S. investment bank hired ex-European Commission head Jose Manuel Barroso to chair its London-based international division. Conspiracy theorists will have a field day over the cozy ties between finance and politics. With the UK poised to quit the EU, Goldman won’t care.
UK’s property trauma looks worse from abroad 8 Jul 2016 The slew of gated property funds and 15 pct-plus markdown of values may not hit British banks. They might also not be too bad for sterling-denominated borrowers. Alternative lenders and foreign investors look more likely to be in the firing line.
ECB takes off hair shirt; puts on kid gloves 8 Jul 2016 The euro zone central bank's vice-president hinted that restrictive Brussels state aid rules get in the way of sorting out banks. Even if that reflects reality, it jars with the ECB's mission. Wavering over state aid makes the laudable goal of banking union harder to achieve.
Where Brexit went next 8 Jul 2016 The knock-on effects of Britain’s vote to leave the European Union are spreading well beyond its borders. Italy, Germany, Ireland, Russia and even the oil-rich state of Oman are among those who now face difficult political and economic questions.
London faces a luxury ghost-town problem 7 Jul 2016 The city’s charm was fading for high-end home investors even before the UK’s vote to quit the EU. A developer in the fancy Nine Elms complex just took a writedown, and prime prices are 8 pct below their peak. Sterling’s fall is a temporary lure, but the capital is losing lustre.
Every fix for EU banks mess kills a sacred cow 7 Jul 2016 With the bloc’s bank stocks down by a fifth, drastic solutions are being aired. A pan-EU bad debt pot is the best idea, but requires euro unity. Italy’s plan to bend state aid rules is the worst, and means euro disunity. While the euro exists, grand fixes will be elusive.
Property gives Britain first post-EU stress test 5 Jul 2016 Standard Life’s 2.9 bln stg UK property fund blocked redemptions after too many investors wanted out. Something similar happened in 2007-08, after which real estate values fell 40 pct. The property market is stretched, as it was then. Hopefully the financial system is more solid.
The declaration of independence from Europe 4 Jul 2016 It's 2076, and researchers finally gain access to Boris Johnson's private archives. They find a printed document bearing scribbled annotations made in 2016 by the American-born former London mayor, politician and campaigner for Britain's exit from the EU. Here are excerpts.
Guest view: Brexit’s economic hit can be managed 1 Jul 2016 Britain's vote to leave Europe is a political problem before it is an economic one, write Giancarlo Bruno and Michael Drexler of the WEF. If politics are handled carefully, markets and investment can be calmed. A key challenge is to leave the City of London to do its job.
Britain joins China in investment limbo 1 Jul 2016 Heathrow Airport's expansion is on hold. Now the UK has voted to leave the EU, controversial or financially demanding decisions may be left dangling. There's a precedent in China, where a graft purge led to widespread dawdling. British inertia could be much tougher on growth.
London’s divorce from wider UK can only go so far 1 Jul 2016 The capital's new mayor is right to seek greater tax autonomy. But after a divisive vote in which Londoners wanted to stay in the EU, the trick is to do so without increasing divisions with the rest of the UK. Offsetting devolution with lower grants is a good place to start.
Britain tests catastrophe bounce back theory 1 Jul 2016 Doom-mongers overestimated how much the U.S. economy would suffer after Lehman's collapse in 2008 or the 9/11 attacks. Gloom about the UK leaving the EU is better judged. As Bank of England Governor Mark Carney acknowledges, policymakers face much tougher challenges this time.