Hogg exit only half solves Bank of England problem 14 Mar 2017 The central bank’s deputy governor has resigned after a UK parliamentary committee criticised her for failing to disclose a conflict of interest. Better late than never. However, the BoE’s tardy response to the affair has exposed a tin ear that will require attention.
Hong Kong’s money laundering fight is a fig leaf 14 Mar 2017 The city may force private firms to disclose their true owners. That would shed light on a lucrative web of shell companies. Minimal reforms proposed so far are perhaps just enough for Hong Kong to avoid international censure – and steer clear of embarrassing Beijing.
Obamacare reform rests on GOP sleight of hand 13 Mar 2017 The Republican plan to replace the Affordable Care Act cuts the deficit by $337 bln over 10 years, the CBO estimates. It does so by removing 24 mln people from the program and ending Medicaid expansion. That’s a ruse anyway: taxpayers bear a lot of the cost of the uninsured sick.
Second Scottish vote could still mean hard Brexit 13 Mar 2017 Sterling rose against the U.S. dollar as Scotland’s first minister called for another independence referendum. One theory is Prime Minister Theresa May will need to take a softer line on Brexit negotiations to persuade Scots to stay. But a hard divorce is still possible.
Bank of England deputy governor Hogg should resign 13 Mar 2017 Charlotte Hogg failed to inform the UK central bank that her brother works for Barclays. While a sin of omission, it’s serious for an institution that holds itself and others to a high standard. If she stays, it would hurt the bank’s reputation.
U.S. swamp drainage clogged by prosecutor firing 13 Mar 2017 Trump ousted 46 DoJ attorneys on Friday, including Manhattan's Preet Bharara, who prosecuted insider trading and other financial crimes. Combined with a bevy of Goldmanites in the White House, it's a further sign the financial industry can expect a chill four years.
Healthcare-plan foes may find safety in numbers 9 Mar 2017 The White House is attacking the CBO as it tots up the cost of repealing Obamacare. Republicans once touted estimates from the nonpartisan group, which has a decent track record. Early healthcare appraisals elsewhere are damning, but the legislative one will remain one to watch.
Guest view: SEC pick’s banking ties are an asset 9 Mar 2017 Jay Clayton's nomination to run the agency has invited criticism because of links to Wall Street by his law firm Sullivan & Cromwell. William McLucas, a former SEC enforcement chief, says history offers many examples of toughness and independence that should satisfy naysayers.
Aviva’s transition from zero to hero gathers pace 9 Mar 2017 The UK insurer beat forecasts and is on track to hit 2018 targets on operating profit, cash generation and dividends. It’s a far cry from its hapless performance post-financial crisis. Increasingly, CEO Mark Wilson’s job is to avoid splurging his excess capital on duff deals.
Do-nothing UK budget belies big risks ahead 8 Mar 2017 Finance Minister Philip Hammond revealed minimal changes to tax and spending. His prudent message makes sense, but contrasts with the large and unpredictable economic consequences of leaving the European Union. It won’t take much for these to knock deficit reduction off course.
Macron pitches novel way to imperil EU banks 6 Mar 2017 The French presidential favourite wants ministers, not regulators, to set capital rules for banks and insurers. Despite the ECB’s best efforts, oversight remains far from harmonised. Handing the reins to politicians would just add financial stability concerns to the mix.
Northern Ireland vote sends Brexit warning shot 4 Mar 2017 Nationalist party Sinn Fein made surprise gains in snap elections, buoyed by discontent with the ruling unionist DUP. That puts the duo, who must govern together, on a more equal but confrontational footing. The result may be a bumpier path for Britain’s EU exit negotiations.
France’s Macron faces peril of becoming mainstream 1 Mar 2017 Former front-runner Francois Fillon is persisting with a presidential bid despite new legal woes. That should help Emmanuel Macron. But the centrist is rapidly losing the useful cachet of being an outsider in what’s becoming a straight contest with far-right leader Marine Le Pen.
Trump sends investors more conflicting signals 28 Feb 2017 Speaking to Congress, the president repeated his criticism of foreigners after telling journalists earlier he’s open to legal status for illegal immigrants. There also were scant details on tax and healthcare reforms. A still-hazy message bodes poorly for the economic agenda.
What Christine Lagarde might say to Marine Le Pen 28 Feb 2017 The presidential candidate wants France to quit Europe’s single currency. The possibility that she might win is already spooking markets. Breakingviews imagines the advice Le Pen might get from her compatriot, International Monetary Fund head Christine Lagarde.
Trump wraps U.S. budget flaws in $54 bln flag 27 Feb 2017 Boosting military spending by that sum largely at the expense of diplomatic soft power may please ardent supporters. Fixing Defense Department mismanagement would be wiser, though, and avoid a clash in the president's own party. Jingoism risks bringing higher costs in many forms.
Rate tweak whiplashes UK insurers 27 Feb 2017 Insurance companies will have to pay more for injury claims after the government said payouts must be discounted at a negative rate. The metric was too high before, and arguably still is. The real mystery, though, is why financial risk ends up with claimants, not insurers.
Review: Steven Cohen’s enduring edge 24 Feb 2017 Sheelah Kolhatkar’s “Black Edge” is a compelling tale of the U.S. government’s decade-long failed attempt to charge the billionaire fund boss with insider trading. As Cohen prepares to open a new firm and politicians embrace deregulation, the epic struggle is clearly in the past.
China regulator reshuffle leaves turf intact 24 Feb 2017 The People's Republic is shaking up top financial and economic positions, with veteran watchdog Guo Shuqing poised to take charge of supervising banks. Yet there is still no sign of the much-discussed super-regulator, and central bank chief Zhou Xiaochuan remains in place.
Mnuchin’s stock-market brag is double-edged sword 23 Feb 2017 The new U.S. Treasury chief says the equities rally reflects faith in Trump and his promises of tax reform and fiscal stimulus. Both need Congress's say-so, and may bring higher inflation. Anti-immigrant and trade policies could also mute market gains. Mnuchin's boast is risky.