Diplomacy

How Europe can kick its Russian gas habit

1 Mar 2022

Conflict in Ukraine shows the folly of the continent depending on gas from Moscow. Speeding up renewable energy would help. To get to zero in a decade, however, Europe will also need other sources of gas, more nuclear power, multi-nation coordination and even consumer rationing.

Viewsroom: Ukraine, ECB and India’s giant insurer

17 Feb 2022

Worries about an invasion of Ukraine have rattled markets, but Dasha Afanasieva says Russian investors are more sanguine. The European Central Bank faces a tougher inflation juggling act, argues Swaha Pattanaik. And Una Galani discusses the listing of India’s Life Insurance Corp.

Russian investors display war chat scepticism

14 Feb 2022

Global stocks dropped and government bonds rose after the U.S. said Moscow could invade Ukraine at any time. Though the rouble and shares in lender Sberbank declined, Russian assets aren’t pricing in the toughest economic sanctions. If war is imminent, there’s more pain to come.

Europe’s gas crunch can avoid worst-case outcome

28 Jan 2022

For a continent struggling with high energy costs, a Russian invasion of Ukraine would be a nightmare. But cutting off gas exports would also damage President Vladimir Putin. Barring a total boycott, liquefied gas imports and action by corporate buyers could limit the disruption.

Italian CEOs’ Putin call exposes European discord

26 Jan 2022

Rome is pushing the firms to scrap their virtual chat with the Russian leader. With their varying degrees of investment, trade and energy dependence, Europeans have more to lose from sanctions against Moscow than the United States. That lets Putin pit them all against each other.

Ukraine sabre-rattling hits Russian bank investors

20 Jan 2022

If President Vladimir Putin invades, the United States has vowed to punish the country’s lenders. Sberbank and VTB don’t need foreign funding and can count on state support. Yet tumbling stocks this year show that shareholders can still get crushed by diplomatic failure.

DJI is a more elusive U.S. target than Huawei

16 Dec 2021

Washington is putting a bigger squeeze on the Chinese drone maker by blocking American investment in the company. But unlike Huawei’s telecom gear, DJI products are widely used in the United States, including by police. Western rivals are tiny, making an outright ban tricky.

Viewsroom: China goes global, Harleys go electric

16 Dec 2021

Gina Chon assesses how China’s 20 years of membership of the World Trade Organization have played out compared to expectations in 2001. And Jonathan Guilford test-drives Harley-Davidson’s deal to merge its electric-motorcycle unit with a blank-check company.

Wrecking WTO has become Sino-U.S. joint venture

10 Dec 2021

Critics think letting the People’s Republic into the global trade group in 2001 was a mistake. Beijing supported the WTO's style but sabotaged its substance. Now Washington is doing the same. A world system driven by state-backed champions has less room for free trade.

Biden shoots antitrust blank at oil giants

18 Nov 2021

The U.S. president wants regulators to examine anticompetitive behavior by oil and gas groups. Similar past efforts have fizzled because energy firms mostly take prices in a global market. But affordable gasoline is a political must even if it conflicts with Biden's bigger goals.

Glasgow’s carbon market overhaul is only half done

18 Nov 2021

The U.N.’s COP26 summit agreed tougher accounting standards for emissions credits, a market ex-BoE Governor Mark Carney hopes can swell to $100 bln a year. It’s a step forward, but loopholes remain. Companies that don’t like greenwashing have a strong incentive to help police it.

Belarus’ gas muscle-flexing is self-sabotage

16 Nov 2021

President Lukashenko may regret his threats to disrupt flows of Russian gas to Europe. The pipeline crossing his territory is already of waning importance. By potentially hastening the opening of Russia’s Nord Stream 2 line to Germany, he’s bringing forward its retirement.

EU-U.S. green steel deal shows way for COP26

2 Nov 2021

Washington and Brussels will set a common external tariff for dirtier types of the metal. It’s similar in effect to the EU’s carbon border levy, with less of the grief. The lesson for Glasgow negotiators is that sector-based deals may be a safer bet than big multilateral ones.

Sudan coup throws rock into choppy Nile waters

28 Oct 2021

The army has seized power in Khartoum, pushing it back into diplomatic isolation. Sudan and Egypt had existing gripes with Ethiopia over the damming of the mighty river. Removing Khartoum’s veneer of civilian rule risks future spats over Nile water use spiralling into conflict.

Capital Calls: Real estate distress is tricky call

15 Oct 2021

Concise views on global finance: Barry Sternlicht’s Starwood Capital has raised a $10 bln fund to buy struggling buildings. With the pandemic's long-term effects unclear, the key will be avoiding those destined to remain empty.

Huawei deal offers illusion of U.S.-China progress

27 Sep 2021

Washington has walked away from an extradition fight with the telecom giant’s Meng Wanzhou, one in a series of concessions. President Xi Jinping has given nothing substantial in exchange, and is doubling down on aggressive economic policies. Any relief will be short-lived.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 Sep 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

World Bank has a shareholder-engagement problem

17 Sep 2021

Leaders, including now-IMF head Kristalina Georgieva, pressured staff to boost China’s ease of doing business ranking, a probe said. This isn’t realpolitik mitigating inherent U.S. bias. Such tactics detract from the bank’s work, damage credibility and impair its future role.

Capital Calls: Biden channels Trump on China

16 Sep 2021

Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.

Financially isolating Afghanistan is pointless

25 Aug 2021

Much of the budget has evaporated with the abrupt halt on aid, and an effective U.S. freeze on central bank reserves is compounding the chaos. An economic collapse will only fan extremism and refugee outflows. Targeted support is urgently needed to preserve development gains.