Breakingviews

 
By Guest Contributor
The rich world summit could come up with a substantive agreement on corporate tax avoidance. It might be an important step towards an efficient global system. But it can’t do much without a broader consensus. Leaders need to be tax reform evangelists, both at home and abroad.

Indonesia subsidy cut is right plan for wrong time

By Andy Mukherjee
The country’s plan to hike energy prices is a welcome reduction in a $20 billion subsidy bill. But inflation could surge, raising the risk of capital outflows. That leaves the central bank no room to offset the fiscal tightening; sacrificing GDP growth is the only option.

AT&T is all dressed up with nowhere to go

By Robert Cyran
The telecom company had a $93 bln bid for Telefonica blocked by Madrid, according to a Spanish newspaper. The target has denied the story. But it’s a sign of the problem AT&T faces: a lofty stock multiple makes M&A tempting, but it seems shut out of both domestic and foreign deals.

Iranians put hopes for change in pragmatic insider

By Una Galani
The election of moderate cleric Hassan Rohani to the presidency showed the level of public discontent with Iran’s ruling hardliners. A radical change in foreign policy, allowing an economic turnaround, is unlikely. But the balance of power in Tehran has definitely shifted.

Singapore’s creative bank penalty may be a one-off

By Peter Thal Larsen
The city-state is forcing lenders to set aside up to $9.6 bln in extra reserves as punishment for rate-rigging offences. With rates low, the costs will be smaller than recent mega-fines. And proposed new rules mean future misbehaviour will be met with more conventional justice.

World's oldest bank limps into 21st century

By Neil Unmack
Monte dei Paschi’s stock jumped after the Italian bank proposed removing the voting rules favouring its controlling foundation. The move will allow the stricken lender to attract new capital, and Brussels to approve state aid. Not that there was much choice.

China’s spiking rates create winners and worriers

By John Foley
Big banks thumbed their noses at an auction of Ministry of Finance bills. No wonder: they can do better lending to each other. Tight liquidity has pushed up rates in the $31 trillion interbank market, creating profit for some, pain for others, and disquiet for central bankers.
Recent Breakingviews Video
All Columnists