Breakingviews

Life after default: Malaysia’s tips for Greece

July 3, 2015

The Asian country shunned an IMF lifejacket in 1998. Greece could soon be in a similar boat. Breakingviews imagines former leader Mahathir Mohamad’s advice to Greek PM Alexis Tsipras: devalue, fix the banks, and boost spending – but don’t bother jailing your finance minister.

Heathrow offers quaint lessons in infrastructure

July 1, 2015

After at least six years of heated debate, a British government-appointed panel has backed the idea of a third runway for London’s largest airport. China has built 44 new airports in that time. The UK’s deliberative approach has advantages, but now it’s time to start building.

Hugo Dixon: Tsipras looks like he is crumbling

By Hugo Dixon
July 1, 2015

With Athens defaulting to the IMF, public opinion moving against the Greek PM and the banks closed, Tsipras seems desperate for a deal with his creditors. But it is not clear they will cut him any slack. They may prefer to deal with his successor.

Hugo Dixon: It’s still possible to stop Grexit

By Hugo Dixon
June 29, 2015

Athens has declared a six-day bank holiday after talks with its creditors broke down. But there are several ways Greece can still avoid quitting the euro. The most obvious is to vote in the coming referendum for the terms offered by the euro zone and International Monetary Fund.

Euro is poor yardstick for euro existential stress

June 22, 2015

The Greek crisis is compromising FX traders’ reputation for being the first and fastest to react to big news. Currency market signals are currently so muddied that stocks and bonds are better barometers of investors’ views on how close Athens is to default or euro exit.

Hugo Dixon: The big fat Greek blame game

By Hugo Dixon
June 22, 2015

If Greece collapses, the biggest chunk of the blame will go to whoever behaves most unreasonably in the final stages of the current game of chicken. So both sides have an incentive to accommodate each other’s reasonable positions. Hopefully, they realise this.

Wall Street lead over EU banks looks set in stone

June 17, 2015

European trading and advisory revenue is down 30 pct since 2010 while U.S. investment banking has grown. Now Deutsche Bank and HSBC are cutting further, even more ground will be ceded. The region’s tentative recovery and capital markets project offer only slim hope of a reversal.

Greece and creditors are not really far apart

By Edward Hadas
June 15, 2015

The brink keeps getting closer, but there’s agreement on broad principles. The fight is over 2 bln euros, 1 pct of Greek GDP and 0.02 pct of euro zone GDP. The damage from failure is many times larger. A deal can be done - if only politics and pride can be overcome.

Edward Hadas: Central banks can save the world

By Edward Hadas
June 10, 2015

The monetary authorities made a hash of things last decade, as they did in the 1920s, 1930s and 1960s. They still have a three-fold problem. Central banks fundamentally misunderstand financial markets, debt and currencies. With new ideas, their record could improve.

Hugo Dixon: What sort of man is Tsipras?

By Hugo Dixon
June 8, 2015

The next days will define Greece’s PM. He must choose between saving his country and sticking with a bankrupt ideology. If he is brave and smart, he can secure a few more concessions from creditors and a goodish deal for Greece. If not, he will drag Greece into the abyss.