Konica Minolta deal helps develop clearer picture 6 Jul 2017 The Japanese company that abandoned cameras for copiers a decade ago is now putting its focus squarely on medical diagnostics. An up-to-$1 bln acquisition of Ambry Genetics alone won't assure Konica Minolta's future. It is, however, an affordable way to start changing its DNA.
Hadas: Currency flexibility is overrated 5 Jul 2017 The pound’s post-referendum drop has done little to enhance Britain’s balance of payments. No surprise there – in developed economies, exchange rates are a relatively minor factor in trade relations. Fixed currencies have more benefits than costs, as the resurgent euro shows.
Italy’s final bank bailout not as bad as it looks 5 Jul 2017 Taxpayers pumping 5.4 bln euros into Banca Monte dei Paschi di Siena is a backward step for dealing with troubled European lenders. However, junior creditors and employees are probably getting a worse deal than if they had avoided the bailout. And the state could make a profit.
Germany has no need to wipe hedgies’ bloody nose 4 Jul 2017 Hedge funds looking to profit from the takeover of drugmaker Stada were wrongfooted after the deal failed to get enough support. The regulator might now waive rules to enable it to go through. Such largesse would make German takeovers an even easier playground for speculators.
Illinois blowup flags dangers of budget fireworks 3 Jul 2017 As America celebrates July 4, at least six states missed their financial-planning deadlines. New Jersey and Maine even shut down services. A third straight year of political impasse has Illinois racing to avoid a junk credit rating. The spectacle should scare others into action.
Theresa May’s dilemma is Mark Carney’s opportunity 3 Jul 2017 The British Prime Minister is under growing pressure to loosen fiscal policy. Higher wages for public sector workers would worsen the deficit. But boosting growth would give the Bank of England chief more freedom to fight inflation. Necessity may force May to do the right thing.
Qatar standoff spells end of Gulf cooperation 3 Jul 2017 Saudi Arabia has granted the sheikhdom two more days to comply with its demands. Failure to reach a deal could escalate the dispute, hitting regional economies and investors in equal measure. But even if both sides back down, plans for greater economic collaboration are on hold.
Review: What really creates the value of money 30 Jun 2017 Christine Desan’s “Making Money” is not only a fine monetary history of England. The 2014 book is relevant today. It shows cash and governments go together, the gold standard was a misnomer and central banking is political. And we should stop outsourcing money-creation to banks.
FDA moves signal storm warning for pharma 29 Jun 2017 New commissioner Scott Gottlieb is wasting no time combating high prices. The U.S. agency will expedite reviews of generic-drug applications to promote competition. The changes will batter the likes of Valeant and Cardinal Health, and cast a cloud over branded drug makers.
Murdoch’s Sky bid promises lack credibility 29 Jun 2017 Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.
Hadas: Time for a big rethink on interest rates 28 Jun 2017 Central banks are told to worry first about prices. The long-term global trend of low inflation makes that a distraction. The right focus now is on weaning investors off the false highs of easy credit and rising asset prices. Part of the withdrawal is making money more expensive.
Britain’s fund manager probe takes horse to water 28 Jun 2017 The Financial Conduct Authority wants clearer fees, more care for investors and better value for money. Its conclusion, that asset management is uncompetitive and too profitable, hit harder than its prescriptions. The question is whether clients will become more demanding too.
Politics are a bar to faster AIB selldown 27 Jun 2017 Shares in the Irish bank rose 8 percent after a heavily oversubscribed IPO. The government - still the lender’s majority owner - may be tempted to rethink a self-imposed cap on how fast it can offload its remaining stake. But political wrangles make a speedy exit unlikely.
U.S. Senate healthcare bill lacks “heart” to pass 26 Jun 2017 Donald Trump wanted a less "mean" rollback of Obamacare. Yet the Senate spared only 1 mln of 23 mln set to lose health cover under the House plan, by Congressional Budget Office figures. The White House is undermining the CBO, but even a Republican-only deal will need surgery.
U.S. GOP tries version of “extend and pretend” 26 Jun 2017 The mantra used to defer the reckoning on dodgy loans has come to Congress. Some lawmakers want to extend the 10-year budget horizon to at least 20 years. That would allow bigger tax cuts and deficits in the near term, but would be as irresponsible as the worst of Wall Street.
Brexit assurances give EU citizens scant comfort 26 Jun 2017 The government has told Europeans they will not be forced to leave the United Kingdom. That’s welcome. But many grey areas will depend on the judgement of overworked bureaucrats. Worse still, any pledges could be rendered invalid if Britain crashes out of the EU without a deal.
Italian bailout is setback for Europe bank regime 26 Jun 2017 Intesa Sanpaolo is taking over the good bits of two smaller failed lenders, leaving taxpayers to foot a bill of up to 17 billion euros. Protecting savers is politically expedient. But the rescue exposes a gaping hole in Europe’s new regime for dealing with troubled banks.
Merkel’s best economic policy belongs to her rival 26 Jun 2017 The German Chancellor has a record of swiping others’ ideas. She could usefully repeat the trick with the Social Democrats’ Martin Schulz. His pledge to invest more and cut taxes for those on low incomes is better than anything her centre-right party has come up with so far.
U.S. debt ceiling’s only value is as a warning light 23 Jun 2017 The Treasury wants lawmakers to raise the $20 trln cap on federal borrowing or risk a default. The 100-year-old idea of the limit is no longer practical, especially when Congress won't link it with budgeted outlays. Still, the ceiling is a symbol of America's growing debt burden.
Brexit one year on: an alternative history 23 Jun 2017 It has been a year since Britain voted narrowly to remain in the EU, a (fake) bank CEO writes in a memo to staff. Few expected uncertainty would linger so long after the referendum. Austerity and populism point to challenges in the UK. Thankfully, the euro zone looks attractive.