Government & Agencies

Germany set to welcome hedge funds

3 Jul 2003

But landlords in London's Mayfair the industry's European epicentre need not worry. More hedge funds will probably be distributed in Germany; but they'll still, for the most part, be manufactured in London.

Fed steps back from unconventional policy

26 Jun 2003

The US central bank cut rates by 25 basis points, but shied away from any mention of unorthodox monetary policies. The Fed has left itself room to make another cut before it needs to seriously consider such alternatives.

SEC plans shareholder vote on equity pay plans

25 Jun 2003

Add this proposal to planned changes in stock option accounting and shareholders will finally have the tools to curb excessive dilution. But don t expect an overnight revolt given the reluctance of US funds to take action.

Spitzer set to cross the Atlantic

18 Jun 2003

But it is logistically easier for banks to apply Spitzer globally. What s more, European rivals may be stigmatised for not following suit. It looks like Wall St firms would be disadvantaged if they universally applied Spitzer s ban on using analysts to win corporate business.

Trichet is free to head ECB

18 Jun 2003

The governor of the Banque de France has been acquitted of charges connected with the collapse of Credit Lyonnais. What a relief for everyone. Trichet is the right man to provide muchneeded continuity and credibility at the ECB.

Europe’s reformability on trial in Paris

13 Jun 2003

France faces a wouldbe general strike over pension reform. This political street theatre matters, and has more than local importance. Reform must win if outsiders are to believe Europe has an economic future. Even the contested pension changes are quite inadequate.

Britain funks the euro again

6 Jun 2003

After nearly six years of fencesitting, the UK government's big euro decision is to sit on the fence. Smart politics, maybe. But as a mediumterm foundation for economic policy, it is a nullity for which those responsible should be ashamed.

UK backs away from fat cat legislation

19 May 2003

This is an outbreak of common sense. Passing laws to stop departing executives from walking away with cash would have been barmy. Far better to leave it to shareholders to control executive pay. They are now doing that: just look at Glaxo.

US bond rally may have gone too far

16 May 2003

It is only possible to justify extremely low yields if one believes in a long period of deflation. The Fed's acknowledgement that deflation is a minor risk has fuelled the rally. But with 10year yields at 3.5%, bonds may have overshot.

Britain boils up some euro fudge

16 May 2003

The euro's key absentee will not join this year. But Britain's politicians are rowing about whether to think again within 18 months. A few quarters' extra data won't alter the economic argument. A short delay would be pure politics and bad policymaking. No should mean no.

Good riddance to golden shares

13 May 2003

The European Court was right to rule against golden shares, while letting governments keep control over privatised companies in some cases. This might act as a deterrent to further privatisation. But the evidence suggests such fears are misplaced.

ECB monetary policy needs to come of age

30 Apr 2003

The European Central Bank should abandon its current 2% inflation ceiling and put in a new 1% to 3% targeted range. The pending review of ECB monetary policy, due in May, provides the perfect opportunity to do so.

McCarthyism comes to London

31 Mar 2003

The new chairman of the City's Financial Services Authority looks as if he would like to make the regulator more consumercentred. Good. But first he has to find a chief executive, and impose himself on the FSA's existing top management.

War reveals Turkey’s financial fragility

25 Mar 2003

Only a month ago, Turkish markets were buoyed by the idea that the country was geopolitically too important to fail. Now there are even mutterings about the possibility of a default.

Bush’s $55bn war tab estimate looks too low

25 Mar 2003

Add in the cost of keeping the peace and rebuilding Iraq and the total tab could be three times the size. Not all that will be paid by the US. But it doesn t have many allies to share the burden. And its own finances aren t strong.

Schroeder pushes Germany forward – gently

14 Mar 2003

The Chancellor's big reform speech contains a lot of positives but, being a political effort, lots of hopeless negatives too. The best Schroeder can do in the short term is set a tone and hope change gets through parliament. He can't make the DAX look any cheaper.

Regime change for Britain?

11 Mar 2003

Blairism is in trouble. Labour has only ever backed Tory Tony reluctantly. It hates Bush's war and threatens to reject both that and Blair. So would a war without UN backing turn Britain Left for the first time in 24 years? No but political instability is back.

Turkey is the latest moral hazard trade

20 Feb 2003

Investors assume Bush has staked so much on war with Iraq that he cannot afford not to bail out Turkey, a key ally in the region. But even if Turkey gets the $30bn it wants, this will only just cover the costs of war.

UK equities gyrate as BoE cuts rates

6 Feb 2003

The Bank of England says it has become more pessimistic about the prospects for domestic and global demand. It may also have hoped to spur a rally after a horrid month for equities. But why has it risked reinforcing worries about the UK consumer?

UK pension scheme deficits shoot up

5 Feb 2003

During the bull market, companies took a long holiday from their pension contributions. Now they must brace themselves for pensions overtime.