Dutch Brexit red carpet hastens tax race to bottom 22 Nov 2017 The country’s new government plans to slash corporate taxes and cancel a levy on dividends paid overseas. One reason is to lure multinationals unsettled by Britain’s departure from the European Union. It’s an expensive gamble that makes it likelier other nations will follow suit.
Berlusconi’s court fight has become a sideshow 22 Nov 2017 The Italian ex-premier, excluded from office in 2013 after sex parties and the euro zone crisis, is challenging the ban in Europe’s human rights court. A verdict before a spring election is unlikely, but for better or worse Berlusconi doesn’t need one to be a political kingmaker.
Silicon Valley gets lesson in Chinese corruption 22 Nov 2017 Lu Wei, the former head of the Cyberspace Administration of China, whom Mark Zuckerberg and Reid Hoffman courted, just got snagged in a corruption probe. It's a reminder that party trumps personnel. And that Lu's former agency is more than a censor. It now determines policy.
Ditching SIFI tag only solves some bank problems 21 Nov 2017 Utah's Zions is lobbying watchdogs to nix its too-big status as lawmakers consider freeing similarly sized lenders from the constraints. The change may trim costs and let banks return more capital. But they're on their own to improve loan demand and avoid dumb credit decisions.
Randall Stephenson makes his last stand 20 Nov 2017 The AT&T boss is fighting U.S. regulators who sued to block his $85 bln merger with Time Warner. Faced with similar opposition six years ago, he gave up a $39 bln tilt for T-Mobile US. This time he has left no room for retreat. Anything less than all-out victory would be fatal.
Powell’s mystery Fed board poses continuity risk 20 Nov 2017 As expected, Janet Yellen will leave the U.S. central bank when her successor takes over. Jay Powell will inherit a skeleton board in need of four more Trump appointees. The lack of holdovers, amid a pivotal shift away from crisis-era policies, could make for a bumpy transition.
Market will trump politics on Keystone pipeline 20 Nov 2017 Nebraska’s green light for the controversial project is a victory for President Trump but doesn’t guarantee it will be built. Years of delays have let rivals steal a march while low prices sap interest in drilling Canadian oil sands. The economic grounds for proceeding are soft.
Mugabe will cast a long shadow over Zimbabwe 20 Nov 2017 The 93-year-old ruler is likely to be impeached after nearly four decades in power. He bequeaths an economy in urgent need of reforms. The most important – attracting foreign investment and restoring trust in the currency system – will happen over years, not weeks.
Merkel’s weakness could give Europe strength 20 Nov 2017 The collapse of coalition talks will force German Chancellor Angela Merkel to weigh other options. Another grand coalition or a minority government would be preferable to new elections. Revamping the euro zone will be easier without the Free Democrats opposing fiscal integration.
Italy’s problem banks defer profitability question 20 Nov 2017 Shareholders in Carige have pulled the mid-sized lender back from the brink by backing a 560 mln euro cash call. That’s a relief for taxpayers. But the bank’s high cost base will weigh on its attempts to return to the black. A new owner may be needed to push through deeper cuts.
Viewsroom: AT&T’s $85 bln deal runs into static 17 Nov 2017 The telecom firm’s acquisition of Time Warner, owner of CNN, may hit regulatory hurdles in D.C. President Trump’s caustic tweets against the news network look self-interested, but watchdogs could yet legitimately rethink norms of competition. Plus: GE searches for a way forward.
Review: The next fight for Latin America’s soul 17 Nov 2017 Dictators and demagogues have come and gone; progress in the region has been impressive. Still, rule of law and effective institutions still lack, Michael Reid writes in "Forgotten Continent." That makes the next steps toward prosperity harder.
Chinese authorities throw down gauntlet to HSBC 17 Nov 2017 Scrapping the limit on foreign bank ownership could in theory enable the lender to raise its 19 percent stake in Bank of Communications. But tying up more capital in China’s fifth-largest bank looks inferior to HSBC’s own expansion plans. Better to sell and redeploy the proceeds.
Northern Ireland is Brexit’s Gordian knot 17 Nov 2017 Avoiding a hard border in the region is an aim of all sides in the Brexit talks. The least-worst fix is for Europe to treat Northern Ireland the way it does Norway. That’s only possible if pro-UK politicians in Belfast can be made to see the economic necessity.
India rating upgrade confirms Modi on right track 17 Nov 2017 Moody's unexpectedly upgraded the country's credit rating for the first time since 2004, in a major boost to Premier Narendra Modi. This recognises that, despite short-term disruption and some negative sentiment, recent reforms will fundamentally improve the economy.
DOJ warns dealmakers that a new sheriff is in town 16 Nov 2017 Antitrust chief Makan Delrahim isn’t a fan of behavioral remedies like the ones Comcast made to buy NBC. In his first major policy speech, he said he prefers divestitures to address competition issues. AT&T’s bid for Time Warner wasn’t cited, but he’s clearly ready for a fight.
Sorry is the hardest word for central bankers 16 Nov 2017 Bank of England Chief Economist Andy Haldane says rate-setters should speak simply and honestly to the public. The first is easier than the second. Admitting past mistakes or doubts about the present is tough for institutions whose clout depends on an aura of omnipotence.
Problem banks return to haunt Italy 16 Nov 2017 Mid-sized Carige has failed to sign up underwriters for its 560 million euro cash call, casting doubt on its future – and on a capital hike by similar-sized peer Creval. Resolution or a takeover are possible next steps. Either way, Italian taxpayers may need to help out.
Congressional contortions raise risks to tax cuts 15 Nov 2017 The Senate is complicating tax reform by proposing to repeal a key part of Obamacare. Cuts in personal rates would also be temporary while corporate breaks would be permanent. The moves would help meet deficit rules but alienate key lawmakers - and give critics more ammunition.
Hadas: Unintended consequences may be new normal 15 Nov 2017 From Brexit to Donald Trump to Saudi Arabia, the world is full of surprises. But those cheering wrenching change may face further upsets. The UK rejoins the EU, the U.S. president discredits small government, and Saudis become poorer. The next shock may be the rise of dullness.