Olaf's Feed
Jun 29, 2015
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Capital controls hit Greek economy at worst time

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

Capital controls have hit the Greek economy at just the wrong time. A week-long closure of Greek banks, announced on June 28, would have been bad for Athens at any time of year. But the restrictions are coming in just as the country’s core export sector – tourism – begins its peak season.

Jun 29, 2015
via Breakingviews

Capital controls hit Greek economy at worst time

Photo

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

Capital controls have hit the Greek economy at just the wrong time. A week-long closure of Greek banks, announced on June 28, would have been bad for Athens at any time of year. But the restrictions are coming in just as the country’s core export sector – tourism – begins its peak season.

Jun 11, 2015
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Forget ethics, carbon divestment looks profitable

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

As long as it was just the pension funds of the Church of England or Stanford University announcing to ditch investments in fossil fuel companies, it was easy to shrug off the trend as feel-good investing. Not anymore, now that Europe’s second-largest insurer AXA and Norway’s $880 billion sovereign wealth fund are doing the same.

May 29, 2015
via Breakingviews

German job miracle keeps defying gloom-mongers

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

Germany’s labour market is defying orthodox economic wisdom. For years, most mainstream economists warned that a proposed minimum wage of 8.50 euros per hour would price up to a million workers out of their jobs. But so far the wage floor, which came into force in January, has not stopped Europe’s largest economy from churning out additional jobs.

May 29, 2015
via Breakingviews

German job miracle keeps defying gloom-mongers

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

Germany’s labour market is defying orthodox economic wisdom. For years, most mainstream economists warned that a proposed minimum wage of 8.50 euros per hour would price up to a million workers out of their jobs. But so far the wage floor, which came into force in January, has not stopped Europe’s largest economy from churning out additional jobs.

Mar 27, 2015
via Breakingviews

Germanwings tragedy requires industry response

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

The crash of Germanwings flight 4U 9525 in the French Alps may mark a turning point in aviation history. French prosecutors say the co-pilot set the aircraft on its tragic descent while his pilot was locked out of the cockpit. It will be some time before investigations are completed. But the disaster has quickly drawn attention to a less evident aspect of flight safety – the possible risks posed by crew rather than passengers. That raises questions about procedures both across the industry, as well as at the parent Lufthansa.

Mar 27, 2015
via Breakingviews

Germanwings tragedy requires industry response

Photo

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

The crash of Germanwings flight 4U 9525 in the French Alps may mark a turning point in aviation history. French prosecutors say the co-pilot set the aircraft on its tragic descent while his pilot was locked out of the cockpit. It will be some time before investigations are completed. But the disaster has quickly drawn attention to a less evident aspect of flight safety – the possible risks posed by crew rather than passengers. That raises questions about procedures both across the industry, as well as at the parent Lufthansa.

Feb 24, 2015
via Breakingviews

Lavish German pay hike helps entire euro zone

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By Olaf Storbeck

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

The change in Germany’s growth model has been ratified by 3.7 million people. All of Europe can rejoice.

Jan 26, 2015

Breakingviews: BA owner’s new pitch to Aer Lingus is nearly there

By Olaf Storbeck

LONDON (Reuters Breakingviews) – Cabin crew, prepare for
landing. The third overture by British Airways owner
International Consolidated Airlines Group (IAG) to Aer
Lingus is still not overly generous, with IAG Chief
Executive Willie Walsh moving just 11 percent from his original
position. But given the conditions Ireland is likely to impose,
this 1.36 billion euro proposal might be enough for the Irish
carrier’s board to start serious talks.

The new pitch is 2.55 euros per share, including a dividend.
On first blush, that doesn’t look too helpful. It’s some way
below the 3.10 euros Citigroup analysts reckon IAG could afford
to pay, or the 2.80 euros HSBC’s team has as its price target.
The total equity value is only 300 million euros more than the
book value of Aer Lingus’ fleet and its 400 million euros of net
cash. The combined group could also benefit from increased sales
and lower costs: Citi thinks synergies could hit 50 to 100
million euros a year.

Jan 19, 2015
via Breakingviews

Cheap oil comes with hidden risks for airlines

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By Olaf Storbeck

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

The falling oil price is a short-term blessing for airlines. In Europe, it might turn into a long-term curse. The real test for the industry is not whether profits increase in 2015, but whether it can limit the negative side effects of cheap fuel.