EU must pressure Hungary into policy change 5 Jan 2011 Budapest is taxing foreign firms, suppressing the central bank s independence and clamping down on the media. It s a big embarrassment for Europe just as Hungary takes over the EU chairmanship. If Hungary doesn t change tack, it may discover that populism often leads to poverty.
Europe’s topsy-turvy credit world can’t last 5 Jan 2011 The euro zone crisis has turned bond markets upside down; many companies are now considered less risky than their governments. Though some firms may cope with sovereign turmoil, austerity measures and tighter credit mean corporations will face greater headwinds in 2011.
Chile’s dollar buys bring only short-term relief 4 Jan 2011 The central bank's plan to buy $12 bln worth of U.S. currency, funded by domestic debt, should help hold down the peso. But with record copper prices Chile's budget should be in surplus and interest rates higher. Intervention will stop working if high copper prices persist.
Asset sales could speed periphery’s rehabilitation 4 Jan 2011 Indebted euro zone governments have promised to sell stateowned assets to cut deficits. Successful privatisations will show the region can still attract capital and that its governments are serious about economic reform. That should make up for having to sell on the cheap.
Possible Obama pick could heal Wall Street wounds 4 Jan 2011 By choosing JPMorgan exec William Daley as chief of staff, President Obama could build bridges with the business community. Daley's protrade views are a big reason the buzz is so loud. The pick would also bode well for reaching deals with Republicans on taxes and spending.
Euro scores one-hit wonder with Estonia membership 31 Dec 2010 The Baltic country's embrace of the single currency provides a rare occasion for cheer, but it's unlikely to be followed by others. Some, like Romania, won't be ready any time soon, while the enthusiasm of Poland and the Czech Republic has been cooled by the sovereign crisis.
Khodorkovsky verdict shows Putin still rules 30 Dec 2010 The former Yukos chief received the maximum sentence after a mock trial on trumpedup embezzlement charges. The judiciary has bowed down to Premier Vladimir Putin's whims. This further undermines the credibility of President Dmitry Medvedev, who keeps promising legal reforms.
NY county crisis shows rich aren’t so different 30 Dec 2010 Wealthy Nassau County, on New York s Long Island, is in fiscal crisis with the state poised to seize its finances. Instead of seriously tightening belts, the Republican leader slashed taxes and leaned on dubious costsaving projections. Let it be a lesson to national legislators.
Weak economy shouldn’t overexcite Obama rivals 29 Dec 2010 The Fed's dour forecast predicts high joblessness will plague the rest of the president's first term. It's the strongest reason yet for any Republican who ever dreamed of occupying the Oval Office to step up and run. Many will. But Obama won't so easily be unseated.
U.S. consumers may be getting ahead of themselves 28 Dec 2010 Despite saying they feel less confident Americans opened their wallets wide this holiday season. Payroll tax relief in 2011 should keep retailers busy next year too. But temporary government support can only do so much. The housing market's travails may offer a sober warning.
Perez more than Chavez caused Venezuelan decline 28 Dec 2010 The late president nationalized oil and iron ore after the 1973 oil crisis and spent wildly on moneypit state investment. Perez' 198993 second term saw riots, coup attempts and his imprisonment. Venezuela's productivity declined by a third in 197098; this was mostly his fault.
Winter wonderland provides warming reminder 27 Dec 2010 After two feet of snow bombarded the U.S. Northeast, the usual grinches have come out to bemoan economic consequences. Some companies will be hit hard, of course. But the energizing psychological, and even productivity, benefits for a weary workforce shouldn't be overlooked.
War over U.S. debt ceiling could force austerity 27 Dec 2010 The political skirmish over expiring tax cuts may pale compared to the coming battle over raising the U.S. government's borrowing authority. Republicans want to use the deadline to force spending cuts on the president. Investors should steel themselves for more brinkmanship.
U.S. more country club than melting pot in 2050 23 Dec 2010 The 2010 Census reveals an unexpectedly low 9.7 pct decennial population growth. If the creation of new Americans is really slowing, then the population in 40 years may be less than 400 mln and the country less diverse, though possibly wealthier, than many expected.
Ernst & Young already took reputational hit 21 Dec 2010 The New York case finally filed against Lehman Brothers' auditor delivers few surprises. A bankruptcy examiner laid the groundwork for the civil fraud lawsuit earlier this year. But it's noteworthy that the Big Four accounting firm didn't settle before it came to this.
Murdoch mess may raise UK risk premium 21 Dec 2010 Scandal engulfs UK business minister Vince Cable as his impartiality about News Corp's full takeover of BSkyB is challenged. Cable has been the glue binding the coalition government. The crisis gives investors cause to fret about the UK's ability to fulfill its cuts agenda.
Net neutrality compromise won’t calm new Congress 21 Dec 2010 The FCC's ruling will give telecom operators a reason to keep investing in their networks, while also protecting consumers. But that balance won't please purists who either deny government's regulatory role or want to make the Internet a utility. So expect a political pushback.
Europe’s gifts from China too good to be true 21 Dec 2010 China is willing to engage in concerted action to help stabilise the euro zone, according to news reports. Measures may include the purchase of bonds of euro periphery countries. This looks like a 21st century Christmas fairy tale, complete with Chinese twist.
News Corp’s Sky bid gains in Cable’s Murdoch war 21 Dec 2010 Bellicose remarks by the UK minister with the power to block the deal may actually increase the chances that it's cleared especially if regulators fail to make clear recommendations. Plus the Telegraph suffers for its apparent selfcensorship of Cable's comments about a rival.
Madoff clean-up nearly as amazing as fraud itself 20 Dec 2010 After recouping half the $20 bln or so of actual cash lost in the Ponzi scheme, trustee Irving Picard needs about 25 cents on the dollar from remaining lawsuits to get the rest. That may still be a stretch, but Madoff's victims could recover more than losing investors often do.