Neil's Feed
Mar 5, 2014
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Bondholders will have to pay for Ukraine’s reset

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Ukraine bondholders haven’t seen the end of their suffering. The country’s bonds have sunk in spite of talks of an imminent bailout by the International Monetary Fund. The country’s creditors may face either a soft debt rescheduling or more radical haircuts. The risks of austerity, devaluation and continued political uncertainty all point to the latter.

Feb 25, 2014
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Italy’s Renzi has big dreams and small mandate

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Italy’s new prime minister has big dreams and a small mandate. Matteo Renzi has announced ambitious reforms on a tight deadline. But his position in parliament is weaker than even his sleepy predecessor’s.

Feb 25, 2014
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Italy’s Renzi has big dreams and small mandate

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Italy’s new prime minister has big dreams and a small mandate. Matteo Renzi has announced ambitious reforms on a tight deadline. But his position in parliament is weaker than even his sleepy predecessor’s.

Feb 21, 2014
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Italy needs fewer bad banks – not a big new one

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Italian banks need to shed their bad debts to start lending again. The classic solution – selling poor credits to a national “bad bank” – would require Italian taxpayers to cough up at a time when state debt is 133 percent of GDP. Matteo Renzi, the likely prime minister, should try something different.

Feb 21, 2014
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Italy needs fewer bad banks – not a big new one

Photo

By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Italian banks need to shed their bad debts to start lending again. The classic solution – selling poor credits to a national “bad bank” – would require Italian taxpayers to cough up at a time when state debt is 133 percent of GDP. Matteo Renzi, the likely prime minister, should try something different.

Jan 23, 2014
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Banks can gain as well as lose from fund usurpers

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Asset managers are making inroads into the corporate lending market. Banks once looked on these “direct lenders” as rivals. But working with funds can help banks manage refinancing risks, and retain clients as they deleverage.

Dec 27, 2013
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Europe will court shutdown with new parliament

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The European Parliament that will be elected next year will be the most powerful and most fragile in the short history of the institution. It will be the first to use powers afforded by the Lisbon treaty: among other things, it will appoint the president of the European Commission. But support for its authority is waning. Europeans will neglect the polls and more votes will be captured by anti-euro, populist or far-right parties.

Dec 2, 2013
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BoE’s small-firm stimulus is blueprint for Draghi

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The euro zone is no longer collapsing, but credit is. The European Central Bank is reportedly considering giving banks cheap loans to stimulate lending. The Bank of England’s so-called Funding for Lending scheme shows that’s tricky, but the euro zone shouldn’t hold back.

Nov 19, 2013
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DSM’s pill deal oddly blends carve-out and LBO

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By Neil Unmack
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

DSM has come up with an odd formulation to solve its drug-production headache. The world’s biggest vitamin maker is merging its DSM Pharmaceutical Products (DPP) business with a private equity-backed rival. DPP was a subscale distraction. But the precise benefits of the $2.6 billion tie-up are hard to fathom. And DSM cedes control of the unit without reducing its economic exposure.

Nov 11, 2013
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Shire adds to premium valuation with toppy deal

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Markets must like Shire’s boldness. Shares of the UK pharmaceutical firm jumped almost 4 percent on the news it would acquire ViroPharma, even though it agreed to pay an eye-watering nine times this year’s sales for the biotech group.