Breakingviews

Hugo Dixon: Greece needs a second election

By Hugo Dixon
May 26, 2015

Most scenarios facing the country are bleak, but there is one outcome that is not too bad. This will require the prime minister not only to eat his words, but also to call a new election to get a fresh mandate. The timing is tough, but just doable.

Bankers get ammo but no ally in regulation tussle

May 22, 2015

Financiers unhappy with tougher regulation can cite new analysis from the BIS. The central banks’ own central bank says new standards will probably change how economies and markets work. But the BIS is firmly focussed on coping with the new paradigm, not returning to the old one.

ECB’s bank board-crashing makes sense – to a point

May 7, 2015

The euro zone’s financial stability gnomes will observe board meetings. Handled right, the ECB should glean extra insight – after all, corporate culture starts at the top. But regular sessions with board committees may reveal more about how Frankfurt’s 123 charges really operate.

Deutsche should limit retail selloff to Postbank

April 20, 2015

The German lender’s strategy review has narrowed down to selling part or all of its retail business. A wholesale-only Goldman Sachs equivalent would be more profitable, but less stable. Deutsche would be better off staying a universal bank - but cutting a lot more cost.

Europe’s credit boom locks in mediocre returns

April 16, 2015

Investors are throwing money at European companies. Carrefour and Danone paid little over 1 pct a year to borrow for a decade; Novartis got 20-year funds at similar levels. A Breakingviews calculator shows how bond buyers’ generosity could backfire.

Hairy deals mean European animal spirits returning

April 15, 2015

Shell-BG and Nokia-Alcatel are complicated, long-mooted deals finally coming to fruition. Exor’s move is just plain ballsy. American firms powered last year’s $3.5 trln global M&A bonanza. With Old World boards and bosses becoming more daring, Europe looks set to catch up.

Greece comes kicking and screaming to reform table

April 2, 2015

The Syriza government’s latest reform proposals include some concessions to its public creditors. The plan still lacks detail, and reneges on past promises. The government is fiddling while Athens burns, and the risk of an accidental euro zone exit is rising.

ECB torn between two roles in Greek bank support

March 20, 2015

The central bank’s monetary policy wing has delayed a plan by its supervisory arm to legally stop Greek banks increasing their stocks of illiquid assets. The stability-searching supervisors have the right idea. But the policy group has an even higher political responsibility.

Wobbly stock markets are in thrall to central banks

By Edward Hadas
March 11, 2015

Performance this year reflects likely monetary policy. The euro zone is set to ease: equities are strong and insiders are selling down stakes in Zalando, JCDecaux and others at a record clip. The U.S. market is weaker as tightening nears. Dollar-exposed Asian bourses struggle.

Hugo Dixon: Greece has no good Plan Bs

By Hugo Dixon
March 9, 2015

Defaulting on its debts and quitting the euro would be a disaster. So would imposing capital controls, while defaulting and staying in the single currency. Athens has no rational course of action apart from working with its creditors to vigorously reform its economy.