Government & Agencies

How investing in news can make sense

7 May 2024

The media industry has been struggling since the digital era and VC-led initiatives like BuzzFeed and Vice failed. Yet betting on independent outlets can reap decent financial rewards, Harlan Mandel, who runs a specialised impact fund, tells The Exchange podcast.

China property fix aims to restock speculation

6 May 2024

Reducing unsold inventory is Beijing’s latest directive and replaces the mantra “houses are for living in, not for speculation”. It’s a prelude to removing some investment curbs. Allowing people to get rich off the sector is a necessary evil to restore overall confidence.

UK watchdog name-and-shame plan is worth the risk

3 May 2024

City leaders hate a Financial Conduct Authority proposal to reveal the identity of firms it probes. In theory, it could taint a company that later gets cleared. But the FCA’s cautious track record offers comfort, and it needs tools to cut a 41-month average investigation period.

France’s Atos entrée heads for fuzzy denouement

2 May 2024

The French state wants to buy the defence assets of the IT group, which is trying to restructure 4.9 bln euros of debt. It should then be easier to sell what’s left of Atos. But it’s unclear how or when Paris might marshal private buyers to recoup its outlay of up to 1 bln euros.

Von der Leyen’s China plan is all bark and no bite

30 Apr 2024

To keep her job atop the European Commission, Ursula von der Leyen will talk tough but wield a small stick towards Beijing. Open supply lines from the People’s Republic are key to Europe’s economic well-being. Brussels’ rhetoric will likely be harsher than sanctions and tariffs.

China can stay on sidelines in BHP-Anglo battle

30 Apr 2024

The People’s Republic may not kick up a stink about a merger like it did with the Aussie miner’s 2008 Rio tilt. Suppliers of copper are more fragmented than those of iron ore, Beijing’s M&A interventionism has matured, and friends like South Africa can lead any deal opposition.

Sánchez’s psychodrama leaves Spain at loose end

29 Apr 2024

PM Pedro Sánchez is staying on after threatening to resign over a court probe into his wife’s dealings. He appears weakened before a series of elections, raising doubt on his ability to push for reforms and ensure the country remains the fastest-growing major European economy.

China is better off doing nothing for TikTok

29 Apr 2024

Beijing has signalled it would rather ByteDance's video app be banned in the US than sold. Unlike Huawei, the company's technology is neither strategic nor desirable. Having a final say over TikTok's fate might be useful political leverage, but retaliation fears look overblown.

Ukraine’s $61 bln lifeline is not enough

29 Apr 2024

The United States last week cleared a vital aid package, but Kyiv still needs a medium-term funding plan to withstand Russia’s onslaught. Mobilising Moscow’s $320 bln of frozen central bank assets to provide compensation for war damages should be central to this.

Through Aramco, Peak China courts Peak Oil

26 Apr 2024

Buying a 10% stake in petrochemical firm Hengli will ramp up the Saudi giant’s presence in the People's Republic. Aramco is boosting ties with an important long-term customer. Beijing gets to tout foreign inflows as other sources dry up. It's a critical match.

US economy is a victim of its own success

25 Apr 2024

The United States emerged as the world’s growth engine at the IMF summit last week. In this Viewsroom podcast, Breakingviews columnists debate whether this debt-fuelled strength means that interest rates will stay high for longer and how that could raise the risk of a recession.

EU Fannie Mae idea is bad answer to good question

25 Apr 2024

A report led by former French central banker Christian Noyer advocates more securitisation to help fund $1 trln of annual green and digital investments. He’s right that bank balance sheets need unclogging. But subsidising the slicing and dicing of mortgages isn’t worth the risk.

Macron wades into a very French debt crisis

24 Apr 2024

Some investors are avoiding the country’s bonds after its budget deficit topped 5% of GDP. Paris is unlikely to require an IMF or European bailout. But President Emmanuel Macron has to bring public finances under control. That will come at a heavy political and economic price.

New Hong Kong bourse CEO needs everyone onside

24 Apr 2024

Anaemic trading activity has halved the market operator’s share price, and first-quarter earnings show it can no longer count on investment income to cushion the blow. There are early signs Bonnie Chan may get support from Beijing to turn things around. Hong Kong can do more too.

China trading-data restrictions are self-defeating

23 Apr 2024

The Shanghai and Shenzhen bourses will cease real-time updates of when overseas investors buy and sell shares. It looks like a ploy to shore up market sentiment. Reversing the decade-long practice, though, will decrease market transparency and undermine shareholder confidence.

Stakes for India’s election outcome widen

22 Apr 2024

Prime Minister Modi’s BJP and rival Congress party promise to create jobs in their manifestos but differ somewhat on how to achieve the goal and on government spending. As India's bonds are added to global indices, a return to profligacy would be extra painful.

What to do about the EU’s relative decline

22 Apr 2024

The European Union will become marginalised if it continues to shrink compared with other regions. Two former Italian prime ministers, Enrico Letta and Mario Draghi, are coming up with remedies. But anxious leaders may lack the will to drink the necessary medicine.

Remaking Made in India will be a long slog

19 Apr 2024

Despite capturing iPhone production, a $24 bln scheme to become the world's factory is ripe for a reset. Officials are learning the hard way that subsidies and cheap labour aren't enough to lure investment. Lower import tariffs would help, cooperation with China is a necessity.

Czech Sphinx may need to pay up for UK mail morsel

17 Apr 2024

Daniel Kretinsky has been rebuffed in a bid to buy the 72% of 3 bln pound International Distributions Services he doesn’t already own. The Czech billionaire has deep enough pockets to pay more for the owner of Royal Mail. But his target’s board has grounds to dig its heels in.

EU bank-saving raid can boost tired capital market

17 Apr 2024

European households have 33 trln euros of rainy-day cash, but not much invested in equities. Former Italian PM Enrico Letta reckons savers could fund the green transition if they had access to better stock funds. Forcing countries to lower tax and other barriers would help.