Government & Agencies

UK mistakes City liberalisation for a growth plan

15 Nov 2024

Finance minister Rachel Reeves wants to unleash the 153-bln-pound financial sector to boost the economy. It’s not clear that her reforms so far, like a share-trading venue for private companies, will do that. Meatier deregulation, meanwhile, would raise the risk of future crises.

UK megafund plan is weak tonic for investment ills

14 Nov 2024

Chancellor Rachel Reeves wants to consolidate the 1.3 trln pound retirement sector to create funds with more firepower to support the economy. It’s a worthy move, but could take years to pay off. Britain’s economic problems need more radical action.

Shein margin wobble takes bite out of IPO value

14 Nov 2024

The e-commerce giant’s revenue growth slumped in the first half of 2024, and the net margin fell to 2% per The Information. Even if the business recovers, it creates uncertainty that’s compounded by a protectionist US government. Investors may struggle to see the upside.

Trump trades will run into Trump reality

14 Nov 2024

The president-elect’s victory sparked wild euphoria in markets. Now comes the realization that tariffs and immigration crackdowns threaten major costs, including the return of inflation. In this Viewsroom podcast, Breakingviews columnists discuss the globe-spanning concerns.

China’s stimulus priorities are plain to see

14 Nov 2024

Readouts of Beijing’s economic meetings focus on fixing local government debt and reflating asset prices, both for equities and property. Expect ongoing policies to zero in on these areas. Those waiting for heavy spending and consumer handouts will be disappointed.

Trump 2.0 goes warp speed on loyalty drive

13 Nov 2024

Unlike his first term, the US president-elect is making rapid appointments, with personal devotion beating experience or policy views. That explains Fox News host Pete Hegseth at the Pentagon and maybe Senator Marco Rubio as secretary of state. But some posts remain hard to fill.

Gulf’s AI strategy is built on more than sand

13 Nov 2024

The UAE and Saudi are raising $200 bln for artificial intelligence. A reliance on imported chips means AI superpower status akin to China or the US is unlikely. But even if the region can’t build a ChatGPT-killer, it can carve out a niche to make the exercise worthwhile.

Shell’s legal win flags need for new green metrics

12 Nov 2024

A Dutch court has nixed a 2021 ruling forcing the $204 bln oil major to cut emissions by 45% by 2030. Such metrics had already been undermined by Big Oil asset sales, which don’t stop climate change. Drillers’ spending on low-carbon energy is a better gauge of green credentials.

The power and peril of American economic warfare

12 Nov 2024

Successive US presidents have wielded sanctions and export controls against rival nations. Donald Trump promises further escalation. In this episode of the Big View podcast, political scientist Henry Farrell explains how weaponizing finance and technology can be self-defeating.

Trump’s ‘America First’ revival could backfire

11 Nov 2024

The returning president’s nakedly transactional approach to foreign policy and trade will further erode global principles and make the United States a less reliable ally. Its friends in Europe and Asia will be minded to hedge their bets, ultimately benefiting China and Russia.

Europe lacks scope for fiery Trump trade riposte

8 Nov 2024

With a self-styled tariff man in the White House, the bloc may face blanket export levies. A vast trade surplus, and reliance on the US for key goods like gas, limit the scope for Brussels to respond in kind. Plan B may be to placate Donald Trump by pledging to boost US imports.

ECB will fail to get out ahead of US trade war

8 Nov 2024

Donald Trump’s return to the White House puts Europe in a bind. With the euro falling, slow growth and likely US tariffs, European Central Bank chief Christine Lagarde can help by slashing rates to 2.75% in December. But policymakers’ muddled priorities make that unlikely.

German government meltdown has a silver lining

7 Nov 2024

Chancellor Olaf Scholz has fired Finance Minister Christian Lindner after a budget dispute. It’s a bad time for political upheaval in Europe’s biggest economy. But making it more possible to loosen the absurd ‘debt brake’ may give Germany a freer hand on key areas like defence.

Trump 2.0: taxes, tensions, tariffs, turbulence

7 Nov 2024

In a decisive comeback victory for his third White House run, Donald Trump notched gains across a wide set of voters and issues. In this week’s Viewsroom podcast, Breakingviews columnists debate the chaotic consequences now looming worldwide.

Europe is unprepared for the Trump storm

6 Nov 2024

The continent faces tariffs and wavering US defence commitments after the Republican candidate clinched the White House. The bloc’s already sluggish economies will suffer. Meanwhile, divided politics will hinder Europe’s capacity to deal with the shock.

Trump re-election entrenches global instability

6 Nov 2024

The former president beat Kamala Harris to return to the White House. Hopes for tax cuts and deregulation will juice short-term asset values. But his love of tariffs and authoritarian instincts set the US – and world – on a perilous path. Unlike last time, it may not be reversed.

Saudi megafund’s success rests on fuzzy local bets

5 Nov 2024

The kingdom’s $950 bln Public Investment Fund is best known for outlandish construction schemes and flashy foreign forays. But its biggest and fastest-growing division houses young domestic firms. While some may thrive, it’s less clear they can guarantee the vital pivot from oil.

Making sense of China’s big economic reboot

5 Nov 2024

Officials have taken dramatic steps to boost confidence and growth in the world’s second-largest economy. In this episode of The Big View podcast, Arthur Kroeber, head of research at Gavekal, explains why he sees the People’s Republic turning into a high-tech, low-growth country.

Chinese planners face an anxious wait

5 Nov 2024

The outlook for trade will worsen regardless of who wins the US election. It may take months for the new president’s policies to take shape. Beijing also needs time to assess how well its plan to stimulate its $18 trln economy is working. No point wielding any bazookas yet.

German M&A flurry is powered by lasting tailwinds

4 Nov 2024

Teutonic deal volumes are below their 2021 peak, like everywhere else. Yet a burst of activity, including the $15 bln privatisation of DB Schenker and $16 bln Covestro sale, show signs of life. Radical changes to the country’s industrial model imply an enduring rebound.