European market reboot depends on more than Macron


LONDON (Reuters Breakingviews) - European investors have cast their vote for Emmanuel Macron. Relief that the pro-European centrist has reached the second round of France’s presidential election triggered a region-wide rally in asset prices on Monday. Yet lingering political threats to the single currency will prevent a return to business as usual.


Taiwan, not China, is its own worst enemy

HONG KONG (Reuters Breakingviews) - Taiwan faces a bigger threat than Chinese invasion: its own economic mismanagement. President Tsai Ing-wen has outlined plans to bolster growth, including a $29 billion stimulus package, but bolder reforms favoured by the business community look hobbled by politics. The irony is that a politician whose party is defined by resistance to Beijing may leave Taiwan more dependent on the mainland than ever.


Winning French presidency is easy part for Macron

LONDON (Reuters Breakingviews) - The choice facing French voters has become clear after the first round of the country’s presidential elections on Sunday. The pro-European reformer Emmanuel Macron will face the far-right protectionist Marine Le Pen in a runoff on May 7, projections showed. The independent centrist Macron is the clear favourite – a relief for investors who feared the rise of anti-EU candidates. His chances of victory are, however, better than his ability to deliver on promises of


Markets back Dimon not Kashkari on too-big-to-fail

LONDON (Reuters Breakingviews) - Two top bankers can’t agree on whether lenders are too big to fail. JPMorgan boss Jamie Dimon reckons the problem is solved. Fed banker Neel Kashkari disagrees, because using debt to absorb losses is flawed. Markets suggest Dimon is closer to the mark.


White House sends new mixed message to Wall Street

WASHINGTON (Reuters Breakingviews) - Donald Trump is delivering another mixed message to Wall Street. The White House will order Treasury Department reviews of rules that discourage so-called inversion deals and set out how to resolve a crisis-related financial failure. The directives themselves are innocuous for now, but the cues might encourage lax enforcement and fresh changes to the liquidation framework.


Review: Lessons from ghosts of tax reform past

WASHINGTON (Reuters Breakingviews) - U.S. President Donald Trump is embarking on an endeavor that has eluded many of his predecessors: tax reform. The last successful overhaul occurred 31 years ago under Ronald Reagan – a president Trump says he hopes to emulate. The drama was captured in the book “Showdown at Gucci Gulch,” first published in 1987. The lobbying and partisan battles depicted then seem almost quaint now, but the saga still offers useful tips on legislative pitfalls, political mane


How tech pushed finance into a status crisis

LONDON (Reuters Breakingviews) - Being number one doesn't just matter for individuals. It has profound importance for industries, too. Before the financial crisis, investment banking was the clear career of choice for MBA graduates enticed by the prospect of money, power and prestige. Now they’re more likely to start out for Silicon Valley. Banking has lost its alpha-ness.


Markets are wary of new blot on Japan Inc's image

HONG KONG (Reuters Breakingviews) - Investors are wary of a new blot on Japan Inc's image. Camera and photocopier-maker Fujifilm said on Thursday it had uncovered some dodgy accounting abroad. The negative stock market reaction to a $200 million flub is telling.


Cox: Ugly global paint battle drips with irony

NEW YORK (Reuters Breakingviews) - Antony Burgmans seems to have a different view of hostile takeovers now that he is defending against one. As supervisory chairman of Akzo Nobel, one of the jewels in the Netherlands' industrial crown, Burgmans is trying to stonewall an unsolicited $24 billion bid from PPG Industries, not to mention calls for his head. Akzo has refused to even discuss the offer, which its U.S. rival already has increased once.


Viewsroom: Theresa May’s big Brexit gamble

NEW YORK (Reuters Breakingviews) - The UK PM wants an early general election to strengthen her majority in parliament, stoking market hopes of a friendly exit from the EU. Those may be misplaced. Elsewhere, Trump’s Buy American, Hire American plan is deeply flawed. And Goldman takes a beating from Morgan Stanley.

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Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at http://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.