Britain’s Brexit bill is worth the money 8 May 2017 An orderly departure from the EU may cost the UK as much as 100 billion euros. A chaotic exit that permanently lowered the growth rate of its 1.9 trillion pound economy would be much more expensive. Better to hand over a hefty sum if it means avoiding that outcome.
Millennial vigor helps drive U.S. employment gains 5 May 2017 U.S. employers added 211,000 positions in April, reducing the jobless rate to its lowest level in 10 years. Moreover, unemployment among young people is finally echoing the national picture as they are joining the workforce in bigger numbers. It’s a sign of a broadening recovery.
Review: Can we avoid another financial crisis? 5 May 2017 That's the question Steve Keen sets out to answer in his new book. He concludes that a capitalist economy can no better avoid another blowup than a dog can avoid attracting fleas. It’s only a matter of time. If the Australian economist is correct, we don’t have long to wait.
Obamacare fever impairs Republicans’ vision 4 May 2017 The party is hell-bent on pushing a new health framework to fulfill campaign pledges. Congressmen are moving so quickly that the costs and coverage fallout are unknown. Important benefits could be waived while sick people pay more. Only voters may cure this political malady.
Holding: SEC’s home-court edge nearing welcome end 4 May 2017 The U.S. regulator has been using in-house tribunals to run up the score against Wall Street targets. A rare loss last month and a new bill in Congress, however, may push more cases into federal court, where legal safeguards are stronger. Fairer hearings are worth giving up a few wins.
Malaysia makes room for better 1MDB property deal 4 May 2017 A $1.7 bln deal to sell a prime Kuala Lumpur development project to a Malaysian-Chinese consortium has lapsed. The two sides disagree about what went wrong. In any case, Malaysia could now do a deal that is better, politically and financially, as it seeks to fix the 1MDB mess.
Kansas’ fiscal fiasco a warning for Trump tax plan 3 May 2017 The president’s tax plan echoes sweeping cuts by the Plains state in 2012. The GOP governor’s bet on trickle-down economics slashed revenue but failed to spur growth. Lawmakers now want to reverse the reductions amid a school-funding crisis. It may be a crystal ball for D.C.
Make Britain’s Brexit bill performance-related 3 May 2017 The EU may demand 100 bln euros from the UK for leaving the bloc. Some Britons want to pay nothing. Investment bankers ease impasses between companies by making part of the cost contingent on future performance. Linking the bill to UK GDP might enable both sides to claim victory.
Hadas: Basic income is basically confused 3 May 2017 As new technology threatens job security, the dream of giving all citizens a simple payment is making a comeback. But the idea is too expensive to be practical. It also ignores the biggest drawback of modern welfare states: that lives are complicated and people are not angels.
French savers are a good bulwark against Le Pen 3 May 2017 Marine Le Pen’s anti-euro rhetoric will be a liability in Sunday’s election. Some undecided voters may share the far-right leader’s distrust of the EU. But ditching the single currency would be punitive for a country with the euro zone’s third-highest savings rate.
U.S. air-traffic revamp is overdue for boarding 2 May 2017 The White House wants to privatize flight control and overhaul ancient systems at an estimated cost of $35 bln. Canada pioneered a self-funding, stakeholder-governed model. A similar approach could work for America if carriers, politicians and others can dump their baggage.
EU clearing spat epitomises perils of hard Brexit 2 May 2017 Brussels may try to restrict euro-denominated clearing in the UK, a report says. European regulators have long fretted over the fact that most of it occurs outside the euro area. A compromise is more than possible – but is harder to achieve if Britain leaves the single market.
Trump rains on his own dealmaking parade 1 May 2017 Lawmakers kept Uncle Sam running with a temporary budget that called the president’s bluff on everything from the border wall to the environment to Obamacare. With no sign of leverage elsewhere, turning himself into a lame duck may be Trump’s major first-100-days achievement.
Collegiate corporate finance may prove infectious 1 May 2017 Indiana's top public university is gambling its reputation for a shot at disruption. Purdue is buying online diploma mill Kaplan from the Graham family. The deal could either pre-empt a digital education revolution - or spread the bad behavior of for-profit schools even wider.
Theresa May has a way out of UK pension pickle 28 Apr 2017 The prime minister is dithering over whether to keep guaranteeing above-inflation hikes to pensioners. The triple-lock is nonsensical, inequitable and unfit for an era of Brexit and stagnant wages. May has the political capital to adopt a fairer single-lock, tied to earnings.
French vote may spring one more plot twist 28 Apr 2017 Presidential favourite Emmanuel Macron enjoys a huge poll lead over far-right Marine Le Pen. But the margin could be eroded by any missteps, his rival’s media savvy, and what the hard-left does. With a week to go, there is still time for the election to rattle financial markets.
Viewsroom: Europe’s electoral frenzy 27 Apr 2017 France is about to choose a new president. The UK has called a surprise election. Germans head to the polls soon and Italians and Greeks could be close behind. As Brexit gets in motion and President Trump settles in, Europe’s election season will bring risks and opportunities.
Archived tax plan could help White House close gap 27 Apr 2017 Donald Trump's bullet points, summarizing earlier campaign ideas, would add trillions to U.S. deficits over 10 years. Ex-Congressman Dave Camp sketched out a more balanced plan three years ago. It may offer a blueprint, albeit with smaller business-rate cuts than Trump wants.
For credit, ECB is more perilous than Le Pen 27 Apr 2017 The dwindling likelihood of far-right Marine Le Pen becoming French president has sent the cost of borrowing for risky companies to near-record lows. A correction could come once the European Central Bank withdraws support for bond markets – which is more likely if Le Pen loses.
Abu Dhabi cure has limits for Mediclinic investors 27 Apr 2017 The emirate has thrown a sop to citizens by agreeing to pay more of their healthcare costs. That's good for local hospital operators like UK-listed Mediclinic. But a near-20 percent jump in its share price looks exuberant. Abu Dhabi may try to recoup its money in other ways.