Diplomacy

Gulf’s World Cup love-in has uncertain shelf life

25 Nov 2022

Egypt and Turkey used the tournament to smooth over old differences, and ex-rivals Saudi Arabia and Qatar are getting along. Riyadh may even use its new oil heft to put $5 bln in cash-strapped Ankara’s central bank. The risk is new tensions, perhaps over Iran, upend the goodwill.

UK and EU’s new goodwill could be significant

23 Nov 2022

British PM Rishi Sunak wants to improve trade relations with the EU. Progress will only be piecemeal and slow, even if the two sides agree on how to implement their 2019 deal on Ireland. In the meantime small deals are possible, and they could normalise the path to closer ties.

EU gas cap is indirect signal to cut power demand

23 Nov 2022

The bloc’s proposed brake on natural gas prices at 275 euros per megawatt hour is a fig leaf. The ceiling is so high and with such stringent conditions that it may never be activated. Its main use may be to remind EU states their best option is to use energy more efficiently.

The world can harness trade to save the planet

21 Nov 2022

Trade is a major cause of global warming. The solution is to tax commerce in carbon-intensive goods and remove tariffs on clean ones, to support low-carbon technologies, and to do all this fairly. It’s a priority for next year’s COP28 conference in Dubai, says Hugo Dixon.

Indonesia’s green step not yet a leap for mankind

18 Nov 2022

Jakarta will get $20 bln of overseas public and private cash to help it decarbonise. The deal struck at the COP27 summit paves the way to channel capital to poor countries at the required scale. But big foreign transfers are fraught. Lenders have plenty of reason to hesitate.

COP28 may make up for COP27’s shortcomings

17 Nov 2022

The global climate meeting has mostly failed to lure the same corporate big hitters as Glasgow did last year. In this Viewsroom podcast, Breakingviews columnists discuss how even if the gathering in Egypt’s Sharm El-Sheikh yields little progress, 2023 in the UAE could be better.

The shafts of light in a dark, dark world

14 Nov 2022

As the G20 kicks off, there are many negatives: a frying planet, economic crisis, conflict in Ukraine, and maybe a cold war with China. But there are positives too, says Hugo Dixon: Putin is losing, autocrats are struggling, and carbon emissions may peak earlier than expected.

Europe’s pain will be ultimately worth it

31 Oct 2022

The European Union faces a tough period as the energy crisis bites and debt troubles return. But the bloc could have the world’s cheapest and cleanest energy by the mid-2030s and it will probably emerge stronger geopolitically, says Hugo Dixon.

America throws South Korean chipmakers for a loop

28 Oct 2022

Samsung and SK Hynix dominate the memory market and can adjust output to protect profits as demand falls. But that flexibility will be eroded under Washington's export curbs against China, where the pair have factories. It's an example of the unforeseen effects from the tech war.

U.S. high-tech chip curb risks lower-tech blowback

11 Oct 2022

Washington’s export controls hinder China from developing advanced semiconductors needed for supercomputers and the like. But the ban may prompt Chinese chipmakers to hasten their progress in the commoditised parts of the market, embedding firms like SMIC in global supply chains.

How West can mobilise trillions to help save Earth

10 Oct 2022

On top of stopping global warming, rich nations have geopolitical reasons to help the countries in the Global South transition from fossil fuels. America’s call for the World Bank to focus more on global needs like climate change is a step in the right direction, says Hugo Dixon.

Europe can shrug off Putin’s Chinese gas Plan B

14 Sep 2022

With exports to its key European market shrinking fast, Moscow hopes to hike gas exports to the People’s Republic. But last year these were just 7% of EU sales, and logistics and sanctions complicate the shift. It need not deter Europe’s talk of a Russian gas price cap.

Europe energy fallout will cascade down the years

12 Sep 2022

The gas crisis is a long-term problem which will make the region poorer and less competitive while saddling it with higher public debt. Dealing with this as well as high inflation will cause further political ructions which will cascade down the years, says Hugo Dixon.

Norway gas lifeline for Europe is the smart move

9 Sep 2022

The staunch NATO ally supplies 25% of the European Union’s gas needs and nearly half Britain’s. A trebling of oil cash and record profit at energy giant Equinor give Norway scope to cut the EU some slack on gas prices. The discount size is less important than the gesture.

Queen was Britain’s ultimate brand ambassador

8 Sep 2022

During seven decades on the throne, Queen Elizabeth II brought stability and dignity as the United Kingdom morphed from a manufacturing economy to a seller of services to the rest of the world. Her death at 96 leaves the country struggling to project the same credibility.

The consequences of Europe’s energy crisis

8 Sep 2022

As Russian President Vladimir Putin cuts off gas through a key pipeline, Breakingviews columnists discuss the response from UK and European governments, how the shutdown could have some longer-term benefits, and when Russia will feel the squeeze of lost revenue.

EU has ways to learn to live with less gas

6 Sep 2022

The closure of a key Russian pipeline leaves Europe facing a 20% shortfall in fuel supply. Measures to cut demand like lower temperatures in homes and incentives for companies to use less energy may soften the blow. More gas-dependent nations like Italy must now work harder.

Europe’s energy cap requires surgical precision

1 Sep 2022

The EU wants to curb surging power costs to avoid a recession. Capping wholesale gas prices will unavoidably dampen the market’s clear signal to reduce demand. Doing the same to electricity prices, especially in a focused and temporary way, looks smarter.

Gorbachev’s bold political plan had economic flaw

31 Aug 2022

The former Soviet leader, who died aged 91, ended the Cold War and launched a liberalisation that brought the USSR to an end. But despite seeing the defects of Communism, he failed to reform Russia’s economy. The result is a country very different from the one he envisaged.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.