GlobalCapital Leader

• UniCredit trade shows how Italy needs the ECB

  Italian banks are paying up for funding, both a cause and effect of financial stress in the country. It shows why the European Central Bank is likely to continue with TLTRO (targeted longer-term refinancing operations), and why the Italian government has less leverage over Europe than meets the eye.

  • 10 Jan 2019

• Bashing World Bank damages US interests

  That US president Donald Trump’s administration should pick a fight with the World Bank — and the bevy of other multilateral development banks the US owns shares in — is no surprise.

  • 10 Jan 2019

• No certainty in sight for the UK or sterling

  Borrowers flocked to the sterling bond markets this week, at possibly greater pace than the usual January rush. Some of that seemed to be an attempt to get ahead of a crucial Brexit vote in the UK parliament later this month. But if anyone expects clarity on the UK’s future relationship with Europe after that date, they’re delusional.

  • 03 Jan 2019

• Will Europe regret stringing out the Carige debacle?

  The European Central Bank is giving Banca Carige yet more time to boost its capital. If the lender cannot turn itself around, authorities will regret dithering while the private sector walked away.

  • 03 Jan 2019

• France, Italy and the populist transmission mechanism

  France looks set to be in breach of European Union budget rules after president Emmanuel Macron promised a set of concessionary measures in an effort to quell the violent protests of the last few weeks. While, by the absolute letter of the law, France’s breach will not be as bad as Italy’s, such a situation will hardly do much to stem the rise of populism or boost the credibility of the EU.

  • 13 Dec 2018

• Would you choose to invent Credit Suisse?

  Credit Suisse is giving money back to shareholders in a sign that a three year restructuring, which has featured two rights issues, is now firmly in its rearview mirror. But as the bank has cleaned up its act and refocused on what it does best, the argument that all of its businesses should live under one roof looks increasingly strained.

  • 13 Dec 2018

• Don’t complain about the disco when the music stops

  Judging extension risk is a key part of investing in bank capital. If investors call it wrong, it is hard to say they have been grossly mistreated.

  • 06 Dec 2018

• UniCredit: you get what you pay for

  UniCredit paid a hefty price for hitting the market this week, but it will also stand to reap the rewards.

  • 29 Nov 2018

• Russia’s doing what you told it to

  Bankers love to advise their clients to look at the bigger picture and print now, for fear that that in just a few weeks or months, they could be facing a much tougher time. So the chorus of DCM officials criticising Russia for its timing in selling a €1bn seven year bond this week is more than a little hypocritical.

  • 28 Nov 2018

• COC-ing about? EU must be joking

  EU authorities are allergic to complex financial products — except when they solve a problem for the EU.

  • 22 Nov 2018

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