Pierre's Feed
Jun 23, 2014
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Investors beware: France will get more erratic

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By Pierre Briançon

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

The French government didn’t have to buy a 20 percent stake in Alstom. It could have smugly observed that its intervention in the acquisition of the French engineer’s energy assets by General Electric had yielded some success. Pressure from Paris forced GE to rework its offer, giving France a decisive say in the future of Alstom’s nuclear business. With that concession secured, there was no good reason to buy out Alstom’s main shareholder, construction-to-telecom conglomerate Bouygues.

Jun 16, 2014
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Gazprom/Ukraine dispute is proxy for Putin’s whims

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By Pierre Briançon 

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

Europe has long been used to the perennial drama of “Ukraine versus Gazprom,” but this year’s version is not your run-of-the-mill gas price dispute. Making good on a longstanding threat, Gazprom has said it will deliver gas to Ukraine only if it has been pre-paid. This comes after the Russian energy group failed to settle a dispute with Naftogaz, its Kiev-backed counterpart, over what it claims are more than $4 billion of overdue bills.

Jun 12, 2014
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BNP’s chief operating officer retires. Next?

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By Pierre Briançon

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

The only thing missing in the BNP Paribas release announcing the retirement of Chief Operating Officer Georges Chodron de Courcel is that he wanted a new challenge. Otherwise, it is business as usual at France’s largest bank: the long-serving No. 2 was planning to retire in September. He suddenly noticed that a new French law was putting a limit on the number of directorships he could hold, so in fact he will leave at the end of this month. U.S. probe, anyone? Sanctions violations? Multibillion-dollar fine?

Apr 24, 2014
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GE/Alstom deal rumours test French reform drive

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By Pierre Briançon

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

In an ideal world where free people would roam across free markets, there would be much to like in a takeover of engineering group Alstom by General Electric. The French turbine and train maker, bailed out by taxpayer money 10 years ago, has been hit hard by the economic slump and Asian competition. Its future as a standalone company is in doubt. It needs cash that its shareholders – including Bouygues, with a 29 percent stake – are loath to fork out. Being folded into much larger GE would help it through bad times while some of its assets would fit nicely into the U.S. group.

Apr 24, 2014
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GE/Alstom deal rumours test French reform drive

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By Pierre Briançon

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

In an ideal world where free people would roam across free markets, there would be much to like in a takeover of engineering group Alstom by General Electric. The French turbine and train maker, bailed out by taxpayer money 10 years ago, has been hit hard by the economic slump and Asian competition. Its future as a standalone company is in doubt. It needs cash that its shareholders – including Bouygues, with a 29 percent stake – are loath to fork out. Being folded into much larger GE would help it through bad times while some of its assets would fit nicely into the U.S. group.

Apr 17, 2014
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Sanctions on Russia will cost less than inaction

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By Pierre Briançon

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

Vladimir Putin has set the stage well for the first international talks on Ukraine. Armed pro-Russian separatists have seized buildings in several eastern Ukrainian cities. Their uniforms and weapons suggest they are equipped by the Russian army, if not part of it. The rebels’ success has shown that the government in Kiev is not in control of the country – not even of its own security forces.

Apr 8, 2014
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Russia would pay steep price for Ukraine invasion

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By Pierre Briançon

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

Vladimir Putin wants to destabilise Ukraine, but he may balk at the economic price Russia would pay for a full-blown invasion. The seizure of government buildings in several eastern Ukrainian cities has rekindled fears of military intervention in the mostly Russian-speaking parts of the country. A major consideration before sending in troops would be the price paid by Russia’s economy. Putin can expect to be severely punished by both markets and Western governments.

Apr 8, 2014
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Russia would pay steep price for Ukraine invasion

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By Pierre Briançon

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

Vladimir Putin wants to destabilise Ukraine, but he may balk at the economic price Russia would pay for a full-blown invasion. The seizure of government buildings in several eastern Ukrainian cities has rekindled fears of military intervention in the mostly Russian-speaking parts of the country. A major consideration before sending in troops would be the price paid by Russia’s economy. Putin can expect to be severely punished by both markets and Western governments.

Apr 2, 2014
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The question ECB hasn’t answered: why wait?

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By  Pierre Briançon

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

There is only one question worth asking Mario Draghi right now: what does he intend to do to boost inflation? The European Central Bank of which he is president is failing at its only mandate – maintaining price stability in the euro zone, defined as a rate of inflation “below but close” to 2 percent. The most recent numbers – inflation last month was at an annual rate of 0.5 percent, and prices  have risen 1.2 percent in the last 12 months – is nowhere near the target. And judging by the ECB’s own forecast, the rate won’t get much nearer by 2016. Real deflation remains, so far, a low-risk scenario. But economies like Spain or Greece are suffering from the ECB’s inaction. And is even a small risk of dangerous deflation worth taking? Acting now could spare the ECB more aggressive policies later. What’s the upside of playing with fire?

Apr 2, 2014
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The question ECB hasn’t answered: why wait?

Photo

By  Pierre Briançon

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

There is only one question worth asking Mario Draghi right now: what does he intend to do to boost inflation? The European Central Bank of which he is president is failing at its only mandate – maintaining price stability in the euro zone, defined as a rate of inflation “below but close” to 2 percent. The most recent numbers – inflation last month was at an annual rate of 0.5 percent, and prices  have risen 1.2 percent in the last 12 months – is nowhere near the target. And judging by the ECB’s own forecast, the rate won’t get much nearer by 2016. Real deflation remains, so far, a low-risk scenario. But economies like Spain or Greece are suffering from the ECB’s inaction. And is even a small risk of dangerous deflation worth taking? Acting now could spare the ECB more aggressive policies later. What’s the upside of playing with fire?

    • About Pierre

      "Pierre Briançon is Reuters Breakingviews' Paris correspondent. He joined Breakingviews.com in 2006, after heading the Dow Jones Newswires Paris Bureau Chief for three years. Previously, he had been: business editor of Libération, then the newspaper's Moscow and Washington correspondent; deputy editor of L’Expansion; and a producer/columnist for French radio and TV. He is also the author of Messier Story (2002), on the fall of Vivendi’s former chief executive, Héritiers du désastre (1992) on the collapse of the Soviet Union, and San Quentin Jazz Band (2008)."
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