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The EFSF’s 6 bln euro bond issue has eased concerns it may struggle to raise debt. Yet the fund and its successor, the ESM, will soon have to recapitalise Spain’s banks, and maybe rescue Madrid and Rome. With the vehicles themselves constantly evolving, that could prove tricky.
BoE governor's arm-twisting raises tricky issues
Barclays’ chairman says Mervyn King made it plain to him that Bob Diamond no longer enjoyed the support of regulators. While the bank should have got rid of its CEO, King had no official authority to tell it to do so. So what exactly happened?
Intel deal closes circuit to faster chips, growth
Next-generation chips are cheaper, quicker and use less power. But toolmakers have been unwilling or unable to spend the sums needed to make the switch. Intel’s $4.1 bln ASML investment deploys offshore cash to remove such bottlenecks and forces rivals to play to its strengths.
Going broke can be true emergency for U.S. cities
It ranks with riots and floods as valid grounds for trimming workers’ pay, says one Nevada town. Unions disagree, but it’s a legally plausible argument that could save crucial services. With more cities tumbling into insolvency, public officials need fresh ways to tighten belts.
Regulators have to tackle flawed benchmarks
Britain and the EU are considering official control of Libor and other indices. Criminal sanctions would help to deter future misbehaviour, though intervention could have unintended consequences. There’s no point pretending market barometers are a purely private matter.
Central bank stimulus won't solve the crisis
Fear abounds. The global economy may be teetering. What should central banks do? In the developed world, they should recognise that monetary policy has gone as far as it can without becoming more harmful than helpful. They cannot speed up the slow recovery.
Supreme Court gives shot in arm to Obamacare M&A;
Expanding health coverage to 32 mln Americans remains politically contentious. But it’s here to stay and a lucrative opportunity for insurers that helps justify juicy merger premiums. That’s the logic behind WellPoint’s pricey $4.5 bln bet on Amerigroup. More deals are likely.
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Breakingviews: Spanish bank ‘bail in’ necessaryJuly 11 - Forcing Spain to impose losses on junior bank debt holders would be deeply unpopular but ultimately is necessary say BreakingviewsVideo
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Breakingviews: Intel chips in to ASMLJuly 10 - Jeffrey Goldfarb and Robert Cyran talk about why Intel’s $4.1 billion investment in the Dutch company ASML, including bankrolling next-generation chip production, looks like a clever deal.Video
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