UK Labour Party’s soft Brexit would still be hard 26 May 2017 The opposition is gaining in polls ahead of Britain’s June 8 vote. Leader Jeremy Corbyn is more pro-immigration than Tory Theresa May. Yet he is less pro-EU than he looks, and is less likely to be business-friendly – which could allow European negotiators to be tougher.
Where to put Europe’s bank regulator? Try Bulgaria 26 May 2017 Brussels has invited member states to bid to host the European Banking Authority when its current host, Britain, quits the EU. The EBA hasn’t exactly dazzled in its handling of bank stress tests. But it could be a decent trophy for a non-euro country that feels unloved by the bloc.
Daily Mail owner risks firing on no cylinders 25 May 2017 The UK newspaper’s parent DGMT has been able to offset media-sector ailments by growing in business information and events. A new cut to its forecasts suggests that formula could be reversing. The problem is that profitability could prove elusive at online crown jewel MailOnline.
Euro rally is on probation 23 May 2017 The single currency is at six-month highs above $1.12. The euro zone economy’s improving health is being acknowledged, and French political risk has diminished even as it has risen in the United States. Yet options prices show little conviction that the gains will continue.
Suicide bombing brings tragic twist to UK election 23 May 2017 The attack that killed at least 22 concertgoers in Manchester is Britain’s deadliest in more than a decade. Its aftermath will dominate the remaining two and a half weeks of campaigning. As in other European countries, economic issues will take a back seat to security concerns.
Time for UK to lose timidity on taxing property 22 May 2017 Theresa May has backed down on a so-called “dementia tax” following a backlash against older Britons using their homes to fund social care. How much the state should subsidise these costs is up for debate. But unearned housing equity should be taxed more.
Theresa May’s manifesto leaves Brexit wiggle room 18 May 2017 Britain’s Tory party will slash migration and quit the EU without a deal if need be should it win a June 8 election. But its leader has left herself room to make Brexit very hard or relatively soft. That’s artful, but ensures adherents of one or the other will be disappointed.
French laundry’s $2.6 bln UK raid leaves stains 18 May 2017 Berendsen has rejected a cash-and-share bid from French rival Elis that values the British group at a 36 pct premium. The approach looks opportunistic given the weak pound and the target’s battered share price. Even so, Elis will barely cover its cost of capital.
Britain’s joyless job boom is nothing to celebrate 17 May 2017 A record three of every four working-age Britons is employed. But prices are rising faster than wages, and a post-Brexit crackdown on immigration threatens to limit further expansions in the workforce. That makes declining productivity an even bigger cause for alarm.
Lloyds bailout bill still isn’t paid in full 17 May 2017 The UK has recouped its 20.3 bln pounds on the once-failing lender. It wouldn’t matter if it hadn’t, since rescuing Lloyds helped save the banking system. Still, just as the real returns outweigh the financial ones, so do the costs: austerity and mistrust of the industry.
British property shows signs of wear and tear 17 May 2017 British Land’s full-year earnings increased 7.4 percent and leasing activity is surprisingly strong. Tweaks to the group’s portfolio should offset Brexit pressures. Still, shorter leases, lower values and a step-up in disposals are a better indicator of what’s to come.
Labour’s risky UK manifesto requires Brexit context 16 May 2017 Britain’s opposition party has outlined tax rises for companies and the rich to pay for higher spending. Potential payers could get around them. Yet what Labour is proposing isn’t that much more risky than the “hard Brexit” the ruling Conservative party may deliver.
Vodafone shapes up after corporate sprawl 16 May 2017 The UK mobile operator expects better growth after problems in India dragged it to a 6.1 bln euro loss. Rivals have made big bets on TV while Vodafone has grappled with past geographic expansion. It’s managing the spread, but may still be on the wrong side of industry trends.
BHP should take Elliott’s activism as a compliment 16 May 2017 The fund has renewed its call for the miner to break up. BHP isn’t the only one with portfolio clash – rivals Rio Tinto, Anglo American and Glencore all have bits that don’t fit. But BHP’s oil business is well suited to a spinoff. Resistance makes it look more desirable.
EasyJet gives lesson in counter-cyclical aviation 16 May 2017 As European airlines engage in a costly battle for market share, the UK no-frills carrier is buying ever-larger aircraft. EasyJet’s cost advantage and the impending demise of weak rivals suggest boss Carolyn McCall is right to look beyond the short-term clouds.
WannaCry exposes glitch in tech business model 15 May 2017 Britain’s health service was among users of Microsoft Windows hit by a virus because they hadn’t installed an update. This is, in theory, the user’s fault. But when customers are big, or the result of their negligence is grave, it’s the company that’s likely to end up bearing the cost.
Britain gears up for immigration self-harm 15 May 2017 Theresa May is likely to stick with a vow to reduce annual net migration below 100,000, despite failing to hit it so far. The election gives the prime minister a golden opportunity to show the UK will keep growing post-Brexit. Renewing the pledge would apply an unhelpful brake.
It isn’t easy being Barclays’ Jes Staley 12 May 2017 The UK bank chief is yet again in the spotlight after falling for an email spoof. After recent controversies involving whistleblowers and the blurring of work and outside interests, he is no doubt walking on eggshells. Breakingviews imagines a typical day.
If Britain cools on markets, others lose too 11 May 2017 The country’s two main political parties are both promising to intervene in high household electricity prices. In energy, market forces haven’t worked as they should. Yet if Britain backs away from its instinct to be mostly hands-off, other countries lose a reason to go forward.
BT valuation gap will outlast post-scandal reset 11 May 2017 The 30 bln pound UK telco is cutting jobs and executive bonuses after an accounting mess and a profit warning tanked its shares. The moves clean up the past, but BT's future depends heavily on regulators. That should keep the incumbent trading at a discount to nimbler rivals.