Portugal

Hugo Dixon: Semantics could help euro

9 Jan 2012

There is a crying need to distinguish between fiscal austerity and structural reform. The endless austerity programmes adopted by the GIIPS could spiral out of control. By contrast, structural reform could make them dynamic.

China firepower pips politics in $3.5 bln EDP win

23 Dec 2011

Portugal has got a neat deal from China’s TGC for 21 pct of its main utility: a top price and a jumbo credit facility. China can press its advantages when it sees strategic value like EDP’s technology and LatAm growth. That mattered more than German lobbying for E.On’s rival bid.

Sinopec’s M&A strategy gets a little smarter

11 Nov 2011

The Chinese oil major’s $5.2 billion investment in Brazilian oil resembles a deal it did last year – but at 20 pct less per barrel. Non-financial considerations explain some of the difference. But state-owned Sinopec appears to be learning more tricks of the M&A trade.

Portugal hangs in the balance

14 Oct 2011

After years of lax management and slow growth, the debt and deficit numbers are intimidating for any government in Lisbon, but the current one is determined to avoid a restructuring. With a bit of economic luck - and some patience from investors - it might manage to pull through.

Wall Street dealmakers get trampled by PIIGS

10 Oct 2011

The fear and uncertainty over Europe has sent the cost of U.S. credit skyward. By one closely watched gauge, junk bonds are yielding almost five percentage points more than they reasonably should. Given the bureaucratic dithering, bankers and buyout barons may be idle for a while.

Pseudo-devaluation could help euro periphery

20 Sep 2011

Greece and its ilk would have to quit the euro to devalue their currencies. But the IMF is offering a tip to mimic the effect: rejigging taxes to benefit exports and hurt imports, especially by hiking VAT. Portugal is trialing the idea. It has drawbacks, but options are scarce.

Euro zone should slow down on austerity

1 Sep 2011

Portugal is the latest troubled euro member to tighten its budget another notch. But from Italy to Ireland, heavily-indebted countries need growth. As the threat of recession rises, sometimes-costly structural reforms should take precedence over fetishist austerity.

Trichet is right to make Italy sweat

4 Aug 2011

The ECB is turning a deaf ear to the Italian finance minister’s suggestion that it buy the country’s bonds. In a further snub, the central bank resumed its bond-buying programme - for Irish and Portuguese securities. Italy must reform before it asks for help.