Lisbon can do a bit more to loosen grip on economy 5 May 2011 Portugal's plan to speed up its 5.5 bln euro privatisation programme and eliminate golden shares is welcome. But it could go further and scrap quirky shareholder voting restrictions in companies like EDP.
Oil’s slide below $100 sets record straighter 5 May 2011 Like a slowmotion echo of the flash crash a year ago, Thursday s market plunge reflected not one factor but many. With Fed policy stoking speculation, U.S. data suggesting another slowdown and Europe running at two speeds, more volatile trading may be the logical response.
Big Oil is no General Electric in avoiding taxes 5 May 2011 With even Republicans talking about ending tax breaks, U.S. oil majors are in a bind. Unlike GE, oil firms already pay income tax at a rate about 50 pct higher than the average industrial group. And there are better ways of raising federal revenue than singling out energy firms.
Flagging bank reform could take heart from Nigeria 5 May 2011 It's not the obvious source of financial advice. But as part of a postcrisis cleanup, Nigeria's central bank fired the CEOs of flailing financial firms. Many developedworld bank critics, including Warren Buffett, would approve. If only Western officials would talk so plainly.
Portugal’s bank rescue plan has one hole 4 May 2011 The EU/IMF plan for recaps, stress tests and privatisations is a punchy blueprint to restore confidence in the financial system. But funding remains a problem. Allowing banks to issue stateguaranteed bonds is only a partial solution when the government's credit is still weak.
Portugal gets bailout at last – but no done deal 4 May 2011 The Portuguese caretaker prime minister says he has secured a 78 billion euro EU/IMF bailout. But the opposition is yet to agree to the terms, interest rates are not decided, and euro zone unanimity is far from certain. At best, the cashstrapped state is only half way there.
Canada vote brings present clarity, future risk 3 May 2011 After the fourth election in seven years, the Conservatives have a clear majority. That should mean businessfriendly growth, especially in energy and minerals. But with a polarized result there's a danger of a sharp shift, by Canada's evenkeeled standards, in four years' time.
U.S. looked safe haven even with bin Laden alive 2 May 2011 Treasuries were certainly priced that way. So killing the al Qaeda chief shouldn't cause a risk rethink for better or worse. Possible defense savings alone won't fix the budget. And the sudden lift to mood and Obama's polls will fade if the economy continues to muddle along.
Geithner’s FX exemption makes sense 2 May 2011 The U.S. Treasury has rightly decided not all derivatives are equal. Currency swaps, unlike say CDS contracts, are shortterm and carry very welldefined risks. DoddFrank purists won't agree, but sparing them from clearing rules is better than gumming up an efficient market.
A royal wedding would do U.S. economy some good 29 Apr 2011 The last two toptier royal weddings provided lifts to consumer and business spirits that may have helped to pull Britain out of recessions and produced some growth. America could use a similar tonic it's certainly cheaper and less damaging than fiscal and monetary stimulus.
Morocco outrage raises twin risks 29 Apr 2011 King Mohammed was navigating the Arab Spring fairly deftly. But that could change if a drop in tourism worsens already mounting fiscal and trade deficits, and any security crackdown hampers political reform.
Crippled class suits may put new watchdog to test 29 Apr 2011 It's a joyful spring for corporate America after the Supreme Court ruled companies can block customers and employees from suing en masse. But as directors celebrate, consumer advocates mobilize to overturn the decision. Elizabeth Warren's consumer bureau could be their best bet.
China needs an SWF overhaul 28 Apr 2011 Its $300 billion sovereign fund wants a topup. But it would be better to set up new funds for China's swelling foreign reserves with separate boxes for natural resources, or politically backed foreign investment. Transparency should reduce controversy, and improve returns.
Britain’s royal family is an affordable indulgence 28 Apr 2011 If the UK stopped funding the clan destined to be led by William Windsor and Catherine Middleton, it would be freed of a 1.1 billion pound liability. For some, it's a burden the cashstrapped state could do without. Yet the entertainment value exceeds the cost by a royal mile.
Russia holds promise for private equity players 27 Apr 2011 International private equity firms are expanding into Russia, and the Kremlin is rolling out a $10 billion fund to lure them. Even without this official blessing, the high growth and profitability potential of Russia's underdeveloped businesses deserves investors' attention.
Fed runs risk of losing control of markets 27 Apr 2011 The U.S. central bank may have missed its last chance to signal the possibility of a rate rise this year. Gold, oil, the dollar and many price data suggest the Fed's ultralow rates and benign view of inflation are behind the curve. It could be very tough to catch up later.
Look out Bernanke, Fed foe seeking White House 27 Apr 2011 Ron Paul was the town crank of the 2008 Republican U.S. presidential race. But his agenda of smaller government, restraint abroad and Fedbashing seems in tune with today's Tea Party. Paul has little chance in 2012, but his views may run strongly. The Fed boss should take note.
Bernanke’s star turn may win over Fed critics 27 Apr 2011 The debut of the central bank chairman's oneman show, BankerMan: Turn Off the Snark, was full of high drama. One flubbed line could have sent markets heading for the exits. And though the performance was impressive, it'll take a longrunning hit to make it worth the risk.
Rebranding tax reform could end U.S. budget logjam 26 Apr 2011 A political deal may depend on whether deficit hawk Republicans can sell the elimination of tax breaks as cutting spending rather than raising taxes. So far, most GOPers aren't buying. Voters might pass, too, once they see the effect on their tax bills. But it's worth a try.
China’s truckers sound bum note on reforms 26 Apr 2011 Sure, fuel price hikes and high fees penalise the truck drivers who staged last week's strikes. But pricier petrol is essential for a more balanced, less polluted China. If the authorities are too wary of upsetting vested interests, necessary reforms will be stifled.