Election

Economic cycle’s age is as problematic as Biden’s

9 Jul 2024

The US president’s record is pristine when it comes to an indicator that stymied former incumbents who lost re-election: unemployment. But that’s changing, and the cumulative effect of inflation makes for a mishmash of mediocrity. For Joe Biden, the election may come too late.

French election shock puts Macron in new quandary

7 Jul 2024

The left will dominate France’s parliament after Sunday’s runoff, while Marine Le Pen’s far right suffered a surprise setback. President Emmanuel Macron will struggle to build a centrist coalition. But appointing a left-leaning prime minister would leave investors on edge.

Labour ‘open for business’ stance faces early test

5 Jul 2024

New UK PM Keir Starmer wants to boost growth and attract capital. He must balance those priorities with political anxiety about inbound investment. Companies like Royal Mail and Thames Water will show where he draws the line, and how he wields extensive powers to block M&A.

Labour’s election win brings power and pitfalls

5 Jul 2024

Keir Starmer is Britain’s new prime minister after his Labour Party won over 410 seats in Thursday’s vote. The electoral landslide gives clarity, a mandate to boost growth and potentially a path to tax wealth. But self-imposed constraints mean change may be too gradual.

UK elections herald return to tarnished stability

4 Jul 2024

Polls suggest voters will hand Rishi Sunak’s Conservative Party a historic defeat. In this Viewsroom podcast, Breakingviews columnists discuss how a new government might pick up the pieces amid the legacy of a now-immutable Brexit and political turmoil engulfing global peers.

New UK government can claim competence dividend

2 Jul 2024

Eight years of political upheaval and economic uncertainty raised the risk premium for investors. Now the centrist Keir Starmer is set to take over, while France and the US face electoral turmoil. For the first time since the Brexit vote, the country looks a relative safe haven.

The risk of a euro crisis is rising

1 Jul 2024

While political instability in France adds to the single currency’s fragility, it probably won’t trigger another meltdown. But euro zone members’ high debts, pressing spending needs and low growth at a time of rising nationalism and geopolitical conflict are storing up trouble.

Far-right win leaves France amid shock and chaos

30 Jun 2024

Marine Le Pen’s party received 34% of the votes in French parliamentary elections, according to exit polls, and could win a majority of seats in the second round. If it doesn’t, the ensuing stalemate might be preferable to a government playing fast and loose with the economy.

Would-be Biden donors may start to think twice

28 Jun 2024

Billionaire backers like to spread money to both candidates in the US presidential election as an insurance policy. But the incumbent’s shaky debate performance might give some pause. It comes at a bad time. With $117 mln on hand, Trump has a 40% bigger war chest than Biden.

Presidential debate puts wrong people on the spot

27 Jun 2024

Personalities will overshadow agendas in Thursday's matchup between Joe Biden and Donald Trump. Presidential aides matter more than candidate mudslinging and soundbites. Corporate directors are scrutinized when companies come under fire. Top advisors should have debates, too.

France raises ghosts of last euro zone crisis

27 Jun 2024

French voters will go to the polls this weekend for the first round of the parliamentary elections. In this Viewsroom podcast, Breakingviews columnists discuss why the country’s rising bond yields and the risks of contagion will be uncomfortably familiar for investors.

French left is too divided to soak the rich

27 Jun 2024

France’s leftist parties have vowed to lift wages and control prices if they win the upcoming election. That would cost 150 bln euros and be funded by higher taxes on the wealthy. Yet fierce splits between moderate socialists and hardliners mean the well-to-do can rest easy.

Why the French vote also matters to Italy

25 Jun 2024

The outcome of snap elections in France will reverberate beyond its borders. Debt-laden Italy is particularly exposed if borrowing costs rise. In this Exchange podcast, former top Treasury official Fabrizio Pagani discusses Rome’s fiscal challenges in a changing EU landscape.

UK investment crisis calls for taxes and U-turns

25 Jun 2024

Budget strictures could see public expenditure sink from 2.4% of national income now to 1.8% by 2029. Businesses are unlikely to pick up the tab. The winner of Britain’s July 4 election can redress domestic underinvestment by taxing more – and moving the fiscal goalposts.

French plutocrats may regret keeping mum on Le Pen

20 Jun 2024

The country’s corporate chiefs have refrained from criticising the far right’s plans ahead of the election. That’s a change from 2017 and 2022 when Marine Le Pen ran for president against Emmanuel Macron. Considering her economic platform, they may rue their embarrassed silence.

Toyota’s chair is driving with ‘L’ plates back on

19 Jun 2024

The tally of votes against reelecting Akio Toyoda almost doubled this year to 27% following months of governance scandals. It’s a strong rebuke for any board leader but especially so in traditionally consensus-driven Japan. Toyoda now has to show he can learn from past mistakes.

UK labour market’s pain is Labour Party’s gain

18 Jun 2024

Britain’s 4.4% unemployment rate is its highest since 2021. That’s good for the Bank of England, which needs slower wage growth to cut rates. It also suits opposition leader Keir Starmer, who could get an early monetary policy boost should he win the UK’s July 4 election.

France would feel lonely if debt crisis hit

18 Jun 2024

Market fears of a far-right victory in the elections sent yields on the country’s 2.3 trln euro debt to 12-year highs. If traders’ worries deepen, support from the European Central Bank is not a given. And a eurosceptic government would be deprived of Brussels’ goodwill.

Latest UK builder M&A may yet have completion date

14 Jun 2024

Crest Nicholson rejected bigger rival Bellway’s $828 mln all-share offer. While Crest’s new profit warning is a turnoff, falling returns mean housebuilder mergers generally make sense. Bellway may not need to offer much more to convince its target’s shareholders.

Europe’s election eruption threatens paralysis

13 Jun 2024

Centrist and green parties saw big losses in a vote to elect the European Union’s parliament, sparking a shock snap election in France. In this Viewsroom podcast, Breakingviews columnists explain how ensuing instability could slow the continent’s response to urgent global issues.