Corona Capital: U.S. airlines 20 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: The CDC issued a warning to Americans not to travel over the upcoming Thanksgiving holiday as Covid-19 cases surge. Airlines, once again, are going hat-in-hand to Washington.
ECB has chance to avoid Fed’s strategy revamp flaw 12 Nov 2020 Christine Lagarde’s central bank is examining basics, like how it defines its price goal. Its U.S. peer earlier this year switched to aiming for inflation that averages 2% over time. But leaving things as vague as Jerome Powell did undermines efforts to lift price expectations.
Jeff Bezos and Margrethe Vestager can get along 10 Nov 2020 The Amazon CEO may balk at charges from Europe’s antitrust tsar that his company distorts retail competition. Possible remedies, like sharing data or erecting internal firewalls, will hurt. Still, Vestager is trying to cope with Amazon’s dominance, not end it. That’s something.
Guest view: Five ways to hit Europe’s green goals 9 Oct 2020 The EU’s aim to cut 2030 carbon emissions by 55% is ambitious. It means more renewables, less coal, and new thinking on energy demand and efficiency. Meanwhile, notes Energy Commissioner Kadri Simson, the extra 350 bln euros it will cost annually will require private sector help.
European Union will be bond market’s new behemoth 7 Oct 2020 The need to fund pandemic aid schemes worth nearly 1 trillion euros will make the EU one of the region’s largest issuers. ECB bond buying and investors’ hunger for safe assets mean that is no problem. And the scale of issuance will make its debt more liquid, a prized quality.
Christine Lagarde has a real rates problem 2 Oct 2020 Euro zone prices fell 0.3% in September from a year ago, a bigger drop than in August. This boosts the inflation-adjusted, or real, policy rate. That phenomenon is most marked on the ECB boss’s turf and may lift the euro. A rising currency would hasten further monetary easing.
Swiss vote reinforces EU’s tough Brexit stance 28 Sep 2020 The Alpine nation reversed its opposition to EU immigration in a referendum, avoiding a messy standoff with its top export market. Broad economic concerns trumped popular angst. As negotiations with the United Kingdom intensify, the outcome will encourage Brussels to stand firm.
Apple fight is just one front in Europe’s tax war 25 Sep 2020 Antitrust tsar Margrethe Vestager will appeal a court ruling nullifying demands the tech giant pay Ireland $15 bln of back taxes. It’s time-consuming and possibly futile. With Covid-19 inflating government deficits, political pressure on low-tax states may be more fruitful.
How to build a European JPMorgan 25 Sep 2020 An EU bank of the U.S. behemoth’s size could help ensure reliable corporate funding and more tech investment. Fragmented liquidity, capital and bankruptcy rules make the necessary mega-deals hard. Though the ECB is helping, it’s really up to national regulators and politicians.
Corona Capital: Playboy, Mondelez 21 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: The owner of perhaps the most famous adult magazine is hoping a SPAC can give it a new lease on life; Mondelez wants to expand its range of healthy snacks – but they’re not always the best money spinners.
Brexit brinkmanship revives risk of worst outcome 7 Sep 2020 Talks with the European Union over a trade deal are at an impasse. Now Boris Johnson’s government is planning legislation which would undermine the prime minister’s exit agreement, the FT says. It may be a negotiating ploy. Even so, it means a chaotic Brexit is back on the table.
Ireland’s Golfgate can reveal a more responsive EU 24 Aug 2020 The Irish public are outraged about an elite golf jolly that flouted Covid-19 restrictions. One minister has resigned and European Commissioner Phil Hogan is under severe pressure. A swift departure would help Brussels look less like a technocratic refuge from popular politics.
Alstom can drive a hard bargain on Bombardier 10 Aug 2020 The French train maker hinted it will reassess an $8.2 bln buyout of its Canadian rival’s unit following surprise losses. A 20% price cut would allow CEO Henri Poupart-Lafarge to make an economic return. EU consent for a deal and Bombardier’s high debts strengthen his hand.
Euro moves a step closer to becoming a safe haven 22 Jul 2020 The EU’s 750 bln euro fund makes the bloc more resilient and creates easily traded common bonds, boosting the single currency’s appeal. Yet political splits are only patched up. It may take new crises to fix them. Only then will the euro stand a chance of supplanting the dollar.
EU deal offers model for future crises 21 Jul 2020 The bloc agreed to 750 bln euros of grants and loans backed by common funds to help pandemic-hit member states. Despite some concessions on size, the plan looks workable and creates incentives for reform. Europe has moved on from its messy handling of the euro zone debt crunch.
EU has fairness vs. speed dilemma on pandemic cash 17 Jul 2020 Brussels wants to use backwards-facing metrics like past jobless rates to assign 310 bln euros of Covid-19 grants. Basing handouts on EU states’ actual hits to GDP would be fairer, and may win richer countries’ support. For needier peers, that risks slowing down the recovery.
EU data ruling opens new front in tech’s cold war 16 Jul 2020 The bloc’s highest court blew up the legal basis on which companies transfer data to America. Privacy evangelists would have Facebook and others store personal information locally. A better solution would be a new U.S.-EU data protection deal, but Washington won’t like the terms.
Corona Capital: Mets star bidders, Robot slayers 10 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Power couple J. Lo and A-Rod are giving hedge fund manager Steve Cohen competition for the New York Mets baseball team; Covid-19 is accelerating automation of the meat industry.
Agnellis can win twice from EU auto merger probe 29 Jun 2020 Brussels is worried the union of Peugeot and Fiat, controlled by the Italian clan, will dominate van sales. High margins make it hard to justify outsized market share. Selling models to a smaller rival like Agnelli-backed CNH would boost competition and let the merger pass.
New City watchdog head fits UK’s Brexit challenge 22 Jun 2020 The financial regulator’s next CEO will be Nikhil Rathi, an ex-Treasury official who runs London’s stock exchange. His background suggests PM Boris Johnson sees the need to help Britain’s hub after the EU exit. That may also make it harder to resist pressure for lower standards.