Trump can teach May about the art of the deal 25 Jan 2017 A trade pact between the UK and the United States could be helpful to both. The faster it comes, the less comprehensive it would be. Yet what an accord between the two leaders might lack in scope would be made up for by the creation of a clear loser: Europe.
London bankers may dodge one-way trip to Frankfurt 25 Jan 2017 UK-based bankers accompanied by EU colleagues might still be able to advise continental clients after Britain leaves the bloc. The ruse might allow financial institutions to keep more staff in London. But both national and European laws would have to remain accommodating.
Tax reform could strip the “L” from LBO 24 Jan 2017 Many companies love the idea, espoused by President Donald Trump and Republicans, of slashing corporate tax rates. But one quid pro quo, ending the deductibility of interest payments, would spike one of private equity's most potent weapons – especially if interest rates go up.
Cox: Buy Amazon, short the euro zone, readers say 24 Jan 2017 Those are two ideas to emerge from people who attended Breakingviews predictions events in London, New York, Hong Kong and Singapore. Our audiences also anticipated a U.S. recession in 2019 and expected the family car to outlast supermarkets, television, the euro and NAFTA.
Even a pariah can poke holes in drug-lobby spin 24 Jan 2017 The industry wants the public to focus on good deeds rather than price hikes. "Less hoodie, more lab coats," it says. Discredited hoodie-wearing ex-CEO Martin Shkreli quickly noted publicly that most drugmakers bear a stain or two. He's right: Big Pharma hasn't helped itself.
Schulz makes German election more of a contest 24 Jan 2017 The country’s Social Democrats have chosen Martin Schulz to take on Angela Merkel. The former president of the European Parliament should mount a more effective challenge to the chancellor. Yet forming a stable left-of-centre government still looks a momentous challenge.
Turkish lira will stick with FX underdog role 24 Jan 2017 Rate-setters passed up the chance to give the battered currency even a brief respite. Investors’ doubts about the central bank’s independence show how political concerns are breeding economic ones. Steep market losses can entice bargain hunters, but not when worse may lie ahead.
Brexit sceptics win battle but will lose the war 24 Jan 2017 Pro-EU campaigners succeeded in their quest to give parliament a say on triggering Brexit. The catch is that Prime Minister Theresa May will probably win a vote. Besides, her opponents would struggle to prove suboptimal outcomes like EEA membership are better than May's vision.
UK industrial strategy needs to go big or go home 23 Jan 2017 Theresa May is right to try and revive Britain's industry - not least because its financial services cash cow is en route to the slaughterhouse. Infrastructure, exchange rates and regional stimulus would be helpful priorities. Otherwise the squeakiest wheels may get the grease.
France’s Macron is gifted risky centre ground 23 Jan 2017 The presidential hopeful looks increasingly like the lone mainstream candidate in the country's coming election. It's a huge opportunity to attract voters turned off by more radical solutions from the left and right. Yet appearing conventional carries its own dangers.
Trump protectionism double-down faces harsh reality 20 Jan 2017 The new U.S. president echoed his campaign rhetoric by presenting a dark picture of "American carnage" and decay at his inauguration. Ending overseas assistance to focus on growth at home is his remedy. But he also needs to boost exports, which requires other countries' help.
Review: Jack of many trades masters nearly all 20 Jan 2017 Edward Thorp, the card-counter who bewildered Las Vegas before conquering Wall Street, flaunts his storytelling skills in "A Man for All Markets." His connection to so many defining moments in finance makes for a compelling memoir. Only the investment tips are out of place.
Calm words won’t stop bankers leaving London 20 Jan 2017 The City is a big source of UK tax revenue and the European Union's main capital market. Both sides have good reasons for a sensible post-Brexit agreement on financial services. Unless they first extend the timetable, banks will not wait for a deal before moving staff.
China’s economic statistics aren’t fake enough 20 Jan 2017 China has posted another quarter of on-target GDP. A recent scandal involving inflated fiscal revenues in northeastern Liaoning shows how easily officials overstate performance. But the mountain of debt propping up growth and funding white-elephant projects is all too real.
Trump takes office more as middle manager than CEO 19 Jan 2017 The president-elect has weighed in on place settings for his inauguration, among other insignificant matters. Trump also has been meeting with game-show hosts and municipal officials while picking fights with TV and film stars. Here's hoping he grows into the big promotion soon.
Guest view: Fixing finance to repair U.S. roads 19 Jan 2017 Plenty of federal programs exist to help leverage private funds eager to invest in infrastructure and make President-elect Donald Trump's $1 trln plan work, argues lobbyist James Courtovich. What's missing is cooperation in Washington to hold municipal bond issuers accountable.
Mnuchin has his work cut out on art of persuasion 19 Jan 2017 The U.S. Treasury nominee was grilled at a Senate hearing about using offshore havens and his chairmanship of a bank that Democrats called a foreclosure machine. He parried critics well enough on the day but to sell a tax overhaul to lawmakers will demand a much stronger pitch.
Bank fines offer exercise in time value of remorse 19 Jan 2017 Credit Suisse and Deutsche Bank both have settled with U.S. lawmakers over mortgage practices. The $12.5 billion combined amount is substantial and makes for bold headlines. It is a less effective deterrent, however, than the other lasting marks from many years of rule bending.
Student-loan case throws down regulatory gauntlet 18 Jan 2017 In a page from the crisis playbook, the CFPB accused Navient of cheating borrowers paying for college. Suing days before Donald Trump becomes president is a bold gambit for the same agency that nailed Wells Fargo for fake accounts. It's fighting as much for survival as consumers.
Talking down dollar makes policy mix trickier 18 Jan 2017 President-elect Donald Trump wants to boost growth by cutting corporate taxes, but also shrink the U.S. import-export gap. Now he says the currency is so robust it hurts competition with China. Reconciling it all will be hard without a trade war or a full assault on the Fed.