Government & Agencies

Markets are right to ignore UK political fight

11 Jan 2005

The spat between Blair and Brown may mean that one of the government s most powerful figures will leave after the expected May election. But whoever goes, current policy trends will likely continue. Taxes and spending will creep higher, but without causing a fiscal disaster.

Exelon deal highlights opportunity

20 Dec 2004

Mergers in the heavily regulated US electric utility industry are risky, politically fraught and difficult to execute. But as Exelon s $12bnplus takeover of PSEG suggests, those acquirers willing to face the challenge may reap substantial rewards.

SEC chief faces grumble campaign

20 Dec 2004

The business lobby is pushing hard for President Bush to replace SEC boss William Donaldson with a more pliant sort. The complaints are misguided. The problem is not the SEC or its boss, but the new laws they are asked to enforce.

Wall Street cheers Spitzer’s run for governor

8 Dec 2004

That may sound odd. After all, the NY attorney general made bankers' and fund managers' lives a misery with his probes and $4bn settlements. The thinking is that his campaign and need to raise money will soften him up, or at least occupy him for a while. Don t count on it.

ECB is more hawkish than Fed on rate rises

9 Nov 2004

The Americans may look reckless, holding back rate increases in the hope of triggering growth. But Europe's antiinflation rhetoric looks equally eccentric. In a flat economy, rate raises should be off the agenda.

Italian pension crisis deferred

29 Jul 2004

The government has forced through its more restrictive pension law. The economics are good, even if the politics are still troubled. But nothing can repeal the Italian demographic implosion. More working years are inevitable. So is slower growth.

SEC votes for hedge fund registration

14 Jul 2004

Chairman Donaldson had to cast the deciding vote over Republican commissioners, squandering his dwindling supply of political capital. He should devote his efforts to worthier causes, such as increasing freedoms for investors to sack and nominate corporate directors.

Euro voter apathy promises gridlock

14 Jun 2004

The European election results show a dislike for national governments and indifference to the European project. Politicians are likely to respond. The EU constitution and budgetary discipline could be sacrificed.

SEC may cave in to business – WSJ

8 Jun 2004

The watchdog is considering watering down proposals that would have finally given US investors some clout in selecting corporate directors. This would be a shame. The original proposals were not radical to begin with and the arguments against adopting them were pretty weak.

Consob needs to show sharper teeth on Parmalat

3 Dec 2003

New boss Lamberto Cardia started the ball rolling. But since his initial success, he doesn't have much else to show. If he doesn't deliver some results soon, he will lose his first big chance to show that the notoriously sleepy regulator is waking up.

France waves red cape at Brussels with Bull aid

21 Nov 2003

The perennially sick computer company has turned to mother France for state aid for the fourth time in a decade. Any aid clearly violates EU rules. With France completely disregarding Brussels, it is time for Monti to play toreador.

Germany unloads Deutsche Telekom, Post

11 Nov 2003

Given the difference between the E5.5bn proceeds and the market prices of the shares, the government appears to have taken a big hit. That s the good news: while selling to KfW is clearly a fudge, the government is at least showing resolve in getting its finances in order.

FSA gets tough on analyst research

28 Oct 2003

The UK regulator is putting the onus on investment banks' senior management to show that analysts' research is untainted. While the FSA is also dictating some core standards, the emphasis on accountability and transparency is preferable to a rulebook.

Schneider puts Monti back in the spotlight

21 Oct 2003

The French electrical components group is suing the European Commission for E1.5bn over the blocking of its merger with Legrand. The lawsuit won't be simple to win. But it keeps pressure on the Commission to reform its merger review procedures.

NYSE brouhaha has silver lining

17 Sep 2003

Grasso s pay dispute may nudge the NYSE closer to abandoning its mutual status and giving up its regulatory functions. That would benefit the investing public and NYSE members alike. The value of their NYSE seats could surge to more than about $3.2m apiece.

Bunds fare best in bond market crunch

27 Aug 2003

European government bonds have outperformed US Treasuries during the selloff. They still look like a safer bet than US debt, regardless of economic recovery.

Greenspan sees US economy accelerating

16 Jul 2003

That is not in doubt this year. Huge tax and interest rate cuts ensure that growth is in the bag. More controversial is Greenspan s optimistic assertion that the US is embarking on a period of extended growth .

European stability pact should go

15 Jul 2003

Chirac is calling for a "softening" of the pact. But governments just like companies should be free to borrow what they want. Not that a borrowing binge would be wise. The real solution to low growth isn't flexible borrowing but flexible markets.

Shake-up looms at UK Financial Services Authority

14 Jul 2003

The regulator has promoted John Tiner, one of its managing directors, to the newlycreated chief executive post. He wants to restructure the FSA. That could see financial firms getting better value for money from the regulator that they themselves fund.

UK takes good first step on age discrimination

3 Jul 2003

This is an opportunity to be really radical. But more is needed than just abolishing compulsory retirement ages. Older employees should take a pay cut if they aren't so productive; and the withering of final salary schemes should be encouraged.