Sports Direct scandal debunks UK employment glory 22 Jul 2016 UK lawmakers have issued a damning report on the retailer and say working conditions hark back to Victorian times. Founder Mike Ashley has big problems to fix. But there’s a wider economic malaise if workers put up with such poor treatment even when the jobless rate is very low.
Portugal’s three bad B’s: banks, budget, Brexit 22 Jul 2016 Lisbon’s banks are saddled with bad loans, and need capital. The government is caught between Brussels’ fiscal rules and a weak coalition. And the UK vote to leave the EU may hurt already grim growth. The three B’s may imperil Portugal’s BBB rating, and blow up its bond yields.
Trump chooses fear mongering over economic promise 22 Jul 2016 The White House hopeful was anointed at the GOP convention. He and other speakers, like tech investor Peter Thiel, presented a dire picture. The economy is stable but violence at home and abroad has unnerved voters. The grim message, coupled with populist appeal, could resonate.
Republicans find Hillary easier mark than economy 20 Jul 2016 The GOP convention day devoted to jobs was spent bashing the Democratic rival instead. Low unemployment makes important caveats harder to knock. America is also in a healthy state relative to the world. Voters prefer Trump on economic matters but he is struggling on substance.
UK economy tiptoes down predictably gloomy path 20 Jul 2016 A new Bank of England report hints at rising prices, risks to investment and delayed hiring plans since Britain voted to leave the EU. Even more worrying, there are reports that demand for loans is easing. This medley of problems wasn't hard to forecast, but is hard to fix.
Hadas: The realist’s approach to Brexit 20 Jul 2016 It's easy to think of things Britain might want to keep if it leaves the European Union. But an alternative approach is to work out what aspects it most wants to cast off. That leads to a difficult conclusion: what the UK really wants is what it already has.
Slovenian twist puts Italy on straight and narrow 19 Jul 2016 Europe’s top court said Ljubljana was right to hit creditors when recapitalising banks. That’s unhelpful for Italian premier Matteo Renzi, who has banks to rescue but doesn’t want to punish their bondholders. He may have to play it straight, which would be no bad thing.
Turkey will pay high price for political stability 18 Jul 2016 President Tayyip Erdogan is reasserting control after seeing off a military coup. He offers stability of sorts, which explains why Turkish assets pared knee-jerk losses. But his crackdown also engenders uncertainty, which investors loathe. Luring foreign money will be harder.
Review: Rules for reading fickle economic fortunes 15 Jul 2016 Ruchir Sharma's new book offers investors 10 clear ways to anticipate whether a country will rise or fall. A mix of humble pragmatism and daring decisiveness make his tips compelling reading. But limiting his outlook to five years will frustrate readers eager for longer views.
Assembling economic dream team is more than a game 14 Jul 2016 Hillary Clinton and Donald Trump soon will unveil detailed economic plans as party officials gather at upcoming conventions. To help them draft a team of advisers, Breakingviews blends the fun of fantasy sports with the real consequences of policy in a new interactive graphic.
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.
China’s legal defeat is new threat to Asian trade 14 Jul 2016 The People's Republic has angrily rejected an international panel's denial of its claims in the South China Sea. Though rhetorical sabre-rattling is mostly harmless, an economic backlash would hurt already-weak imports and exports in the region. Such tactics have misfired before.
Venezuela crushed by Maduro’s survival calculus 13 Jul 2016 The Andean country's leader is squeezing imports to hoard dollars for debt payment. Ordinary folk are paying the price. A recall referendum he'd probably lose offers more hope than disorderly change. It'll take higher oil prices or electoral shenanigans to keep him in power.
Dimon helps steer value debate beyond shareholders 12 Jul 2016 JPMorgan's CEO is raising pay for 18,000 lower-level workers like bank tellers, after similar moves by Gap, Wal-Mart, Starbucks and others. Helping shrink the income inequality gap is a good step, especially by sharing spoils often reserved for Wall Street staff and investors.
Ireland’s 26 pct GDP growth merits no champagne 12 Jul 2016 Dublin’s statistics office just revised up 2015 growth from 7.8 percent to 26.3 percent. Blame foreign companies using Ireland for tax inversions. Far from a cause for celebration, it’s reason to take Irish GDP figures with a pinch of salt.
Carney will be bit player in averting UK recession 12 Jul 2016 Bank of England boss Mark Carney can easily justify easing policy this week. Yet driving policy rates and gilt yields to new record lows is of limited use when investment and spending are held back by fear and uncertainty. Fiscal policy can do more to shore up the economy.
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.
U.S. jobs volatility obscures still steady gains 8 Jul 2016 A whopping 287,000 new positions were created in June. But May was revised down to almost none. Beneath the choppy numbers, even the three-month average has only slowed to 150,000 a month. And that's after replacing all 8.7 mln jobs lost after the crisis and 5.7 mln more.
How to read global banks’ love letter to London 7 Jul 2016 Standard Chartered, Goldman Sachs and three other U.S. investment banks have given the UK a boost by releasing a statement celebrating London. Yet the nebulous prose in which they have done so leaves it open to interpretation. Breakingviews fills in the gaps.
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.