European Union

Giant leap for ECB is small step for euro zone

8 Jul 2021

The central bank tweaked its inflation target to stress how much it hates falling short of 2%. And boss Christine Lagarde wants to do her bit to fight climate change. The shifts may be a big deal for a cautious institution, but they won’t produce a revolution in terms of results.

ECB’s risky loan crusade has limits

5 Jul 2021

Top European watchdog Andrea Enria is worried about banks’ exposure to highly indebted buyouts. He’s right to focus on a fast-growing market with weak investor protections. But clamping down risks further undermining sickly lenders and may only push the problem elsewhere.

Vaccine passports are a patchy travel fix

1 Jul 2021

European Union passes went live on Thursday. But even within the bloc there are quibbles over standards and risks from viral variants. At a global level, rifts are amplified. Even with a central authority and consensus on approved jabs, governments can impose their own curbs.

Capital Calls: GameStop is a SPAC now

22 Jun 2021

Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.

Capital Calls: Netflix, Flackless SPAC

21 Jun 2021

Concise views on global finance: The streaming service strikes an agreement with Steven Spielberg’s Amblin Partners; Helicopter-taxi company Blade’s phony spokesperson speaks poorly to investors.

EU bond ban is smarter way to police errant banks

16 Jun 2021

The bloc froze 10 lenders out of its first recovery bond sale because of past market-rigging, the FT reported. The direct hit for JPMorgan and others is small. But they can only rejoin the fold by proving they’ve changed. That’s a keener incentive to stay clean than fines.

Capital Calls: Platinum Equity, FTC chair, Tui

16 Jun 2021

Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.

EU bonds will take shine off Germany’s over time

15 Jun 2021

Investors flocked to buy the maiden issue of the bloc’s 800 bln euro joint funding programme. But the yield is higher than Berlin’s, implying it’s not yet Europe’s safest asset. Closing the gap requires more liquidity and a sustained political commitment. Both seem likely.

The Exchange: EU Trade Commissioner Dombrovskis

8 Jun 2021

With vaccination programs catching up with America and Britain, Europe is poised to rebound, the former Latvian premier, who is also responsible for an “Economy that Works for People,” tells Rob Cox in an interview hosted by the European-American Chamber of Commerce New York.

Danish hydrogen adds hygge to market green malaise

7 Jun 2021

Green Hydrogen Systems is planning a Copenhagen float that will value the electrolyser maker at $500 mln. Of late, pulled IPOs reflect investor scepticism about so-so renewable energy listings. The green gas’s key role in cutting EU carbon emissions may make this a comfier fit.

The Exchange: Steering Europe’s green transition

1 Jun 2021

Frans Timmermans has a key leadership role in the European Union’s quest to reduce its 2030 emissions by 55% compared to 1990 levels. Ahead of a major set of green policy updates next month, he talks to George Hay about both these and November’s COP26 conference.

Capital Calls: “Friends” reunion, SPACs in D.C.

24 May 2021

Concise views on global finance: AT&T's HBO Max is streaming a delayed 25-year reunion of the popular sitcom cast just as the company ditches its media assets; busybody U.S. Congress is taking a hands-off approach to blank-check firms.

Northern Ireland row threatens its Brexit dividend

21 May 2021

British leaders have cast doubt on border arrangements they agreed following the country’s split from the European Union. It’s a blow for the province’s plan to lure foreign firms by offering access to both Europe and Britain. Its post-Brexit boom may be over before it started.

Capital Calls: Retail sales’ wild ride

19 May 2021

Concise views on global finance: Some U.S. retailers are reporting better growth than others, but there’s still much to play for.

EU boxes smart in bout with Chinese behemoths

5 May 2021

Competition tsar Margrethe Vestager wants to stop state-sponsored foreign firms from buying European rivals. It’s a good way to protect industries while resisting mergers like Siemens-Alstom. But ensuring a level playing field isn’t enough to develop high-tech sectors like chips.

Time is biggest foe of Draghi’s big plan for Italy

26 Apr 2021

Prime Minister Mario Draghi pledged reforms, like faster legal trials, to obtain some 200 bln euros of EU funds. This complements a big budget deficit he’s running up during the Covid-19 crisis. A short tenure means he must act fast as his successors may be less keen on change.

European chips champion is puzzle for M&A bankers

21 Apr 2021

The region’s leaders fret about their collective semiconductor shortcomings. An $85 bln union of Infineon and STMicroelectronics would bring heft, plus cost savings to mollify investors. The hard part is getting France and Italy to agree a structure that preserves their pride.

Germany’s EU views will get Green jolt post-Merkel

20 Apr 2021

Armin Laschet, the ruling Christian Democrats’ pick to run for chancellor, will almost certainly have to share power with the increasingly popular pro-European Greens. Such a coalition would bode well for a sensible reform of the bloc’s fiscal rules and common debt issuance.

Ireland bank exodus presages wider EU retrenchment

16 Apr 2021

Belgium’s KBC may flog most of its $12.3 bln of local assets to Bank of Ireland. NatWest just pulled the plug on Ulster Bank. Tough regulation, large incumbents and low rates played their part. The same factors will push other European lenders to retreat from far-flung markets.

EU’s new supply-chain stick delivers fair whack

16 Apr 2021

Germany and others plan to make firms liable for human rights and environmental abuses by suppliers. The financial gains derived from outsourcing justify the legal stretch. Scandal-wary giants like Nestlé already self-police their sourcing. Hefty fines are an added incentive.