Breakingviews

Bloomberg gives Clinton big wet Wall Street kiss

By Rob Cox
July 25, 2016

The former Republican New York mayor, who considered an independent run for president, will endorse the Democratic nominee at the party's convention this week. Bloomberg's backing will play like an endorsement from the financial-industry plutocracy. Clinton could do without that.

Trump chooses fear mongering over economic promise

July 22, 2016

The White House hopeful was anointed at the GOP convention. He and other speakers, like tech investor Peter Thiel, presented a dire picture. The economy is stable but violence at home and abroad has unnerved voters. The grim message, coupled with populist appeal, could resonate.

Malaysia fiasco undercuts Goldman’s standards push

July 22, 2016

After the financial crisis, the Wall Street firm overhauled its business practices in an effort to avoid big reputational as well as financial risks. But its dealings with scandal-hit sovereign fund 1MDB, spelled out in new lawsuits, cast doubt on the depth of Goldman's changes.

ASML could be cousin to ARM in next tech wave

July 20, 2016

Like the UK chip-designer Japan's SoftBank has agreed to buy, ASML is a niche but dominant player. Its tools make chips smaller and punchier. ASML would be harder to take over than ARM, but if big data and the internet of things merit the hype, it's in a good position to cash in.

The City will survive Britain’s big rift

July 19, 2016

The UK's Brexit vote threatens London's financial hub-ness, but it would be wrong to think in simple binary terms. Even at worst, the costs to a global bank of staying on in the UK are likely to be counterbalanced by the costs of leaving. And really, it's clients who will decide.

Turkey will pay high price for political stability

July 18, 2016

President Tayyip Erdogan is reasserting control after seeing off a military coup. He offers stability of sorts, which explains why Turkish assets pared knee-jerk losses. But his crackdown also engenders uncertainty, which investors loathe. Luring foreign money will be harder.

Cox: Dismantling Dodd-Frank is a Trump distraction

By Rob Cox
July 12, 2016

Republicans and their presumptive leader want to overhaul the financial-reform law. Recent stress tests and narrowing funding costs between big and small banks suggest that swapping reliance on regulators for bankruptcy courts is a bad idea, even if Trump knows the latter well.

AMC-Odeon deal is both trailer and closing credits

July 12, 2016

The U.S. cinema chain is buying its European peer for $1.2 bln. The deal ends Odeon's epic stint in private equity hands. It's a further sign of the global ambitions of Wanda, AMC's Chinese backer. And it could be the first of many post-Brexit deals by dollar-based buyers.

U.S. anti-inversion push has a harmful flipside

July 7, 2016

Treasury's plan to rein in tax-motivated overseas M&A takes aim at intercompany loans. It's a good idea to curb so-called earnings stripping where deductible interest is sent to an overseas parent. The proposed rule is broad, however, and could hurt normal funding practices.

Danone investors get creamed by WhiteWave deal

July 7, 2016

The French group is paying a too-full $12.5 bln for U.S. dairy group WhiteWave. Danone can get away with this because expanding away from Europe looks attractive, and debt comes cheap. Skim off the froth, and it’s an expensive way of buying growth.