Breakingviews

 
James Gorman’s firm had its best quarter in years. Its Wall Street competitor still has the edge with returns and book value growth. By one key metric, though, investors value Morgan Stanley more highly. Gorman’s strategy, which downplays volatile trading, is starting to pay off.

EU migration policy is economically short-sighted

For many desperate and poor people, Europe is the nearest safe place to go to make a living. A sensible migration policy would recognise the region’s international appeal and manage the reality. But inward-looking politics make for bad economics and heighten the risks to life.

China's road to West is paved with bold intention

President Xi Jinping is expected to sign off on a $46 billion corridor between Western China and Pakistan. The transport link may end up as a security nightmare. But the lure of bringing Europe closer and countering India’s clout in South Asia makes it a tempting idea.

Deutsche should limit retail selloff to Postbank

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.

Sliding prices vindicate China's growth worries

New moves to get banks lending more show the authorities are worried that growth may miss the official target of 7 percent. Look closer at what’s happening to prices and there is good cause. China’s slowing growth is close to being too slow.

Bloomberg outage highlights another bank weakness

The financial network’s global downtime may have been a problem only for the very rich – and a boon for City pubs. But it prompted the Bank of England to remind banks it’s there as a lender of last resort, raising questions about traders’ heavy reliance on a few fallible systems.

Blackstone brandishes its long-term bona fides

Nearly eight years after going public, the buyout shop is taking a victory lap. Its shares finally trade noticeably above the IPO price, and Q1 results suggest Blackstone’s model is working. Even so, owners of the firm’s equity may prove more fickle than investors in its funds.