Government & Agencies

Hong Kong catches tantalising glimpse of future

12 Apr 2024

The city's airport had its busiest week since 2020 thanks to the Rugby Sevens and HSBC's inaugural investment summit. Yet many Hong Kongers spend their free time on the mainland. As the hub generates some of its old buzz, politics and pragmatism drive it closer to its neighbour.

Swiss too-big-to-fail rules are too timid to work

10 Apr 2024

Following the Credit Suisse disaster, Finance Minister Karin Keller-Sutter will give the country’s bank regulator more teeth and raise capital requirements for $100 bln UBS. It all helps. However, there’s no sign authorities will be any more willing to wind down a big bank.

Hong Kong’s latest problem is a 99% nosedive

10 Apr 2024

That’s how much shares in cement maker China Tianrui fell in 15 minutes, erasing some $1.9 bln of value. It’s not the first such plunge on the city’s bourse, and at present outsiders can only guess at its cause. It’s a reminder that governance and transparency still need work.

India can grow fast with or without Narendra Modi

10 Apr 2024

The prime minister is hot favourite to secure a third term, and to lead the country into another decade of economic expansion. Yet projections of 6%-plus annual GDP growth are below the country’s own track record. And hitting the mark does not depend on one man.

Airbus obsessives have a shaky grasp of history

9 Apr 2024

The $140 bln pan-European group is flying high as rival Boeing stutters. Now carmakers and others are wondering if similar collaboration could help them face down overseas competitors. But Airbus’s idiosyncrasies and convoluted road to success make copycat plans pie-in-the-sky.

Next Chinese trade war could benefit the planet

8 Apr 2024

As Beijing floods the world with cheap green goods, the West will put up trade barriers. That will delay the energy transition in the United States and EU. But the glut of EVs, solar panels and the like will speed it up in China and much of the Global South.

Germany sovereign pension fund is sound but small

3 Apr 2024

Berlin will borrow to invest up to 200 bln euros in global equities to help pay for the retirement of the country’s fast-ageing population. The vehicle’s modest size will limit its long-term impact, but Europe can learn from this blend of public and private schemes.

Odd Washington deal creates anti-M&A synergy

28 Mar 2024

Senators on opposite ends of the political spectrum are joining forces to stop stock swaps like Capital One’s $35 bln Discover deal from being tax-free. The proposal probably wouldn’t generate much revenue. It does, however, build on the movement against corporate concentration.

UK’s leaky coffers are Thames Water’s lifeboat

28 Mar 2024

The utility is drowning in $19 bln of debt and may collapse in 2025 if its regulator doesn’t approve higher bills. A nationalisation could be the best solution but the government isn’t flush with cash. Unless PM Rishi Sunak breaks his fiscal rules, consumers will have to pay up.

LNG angst seeps from consumers to producers

27 Mar 2024

A few years ago, supplies of liquefied natural gas were scarce and prices sky-high. Extra capacity arriving this decade means there could soon be a price-sapping glut. Big suppliers like Qatar and Shell have long-term contracts that can ease the pain, but only up to a point.

Capital Calls: Shell and Russia

26 Mar 2024

Concise views on global finance: Russian state giant Gazprom will buy the British energy major’s 27.5% stake in a major Siberian liquefied gas field for the equivalent of $1 bln. Shell is however unlikely to be able to get hold of the cash any time soon.

Lower taxes would cripple Europe’s growth

26 Mar 2024

The bloc needs new public investment of about 3% of GDP for the green transition, defence, infrastructure, education and health. High debt loads limit borrowing and spending cuts hurt the economy. Instead of pledging lower levies, governments have to raise them.

Ukraine loan is matter of politics and accounting

25 Mar 2024

Lending the country $300 bln backed by its claim for war damages against Russia has several benefits compared to rival ideas for unlocking support. Kyiv’s allies would still need to find the cash, though. Here is how they could navigate the political and financial obstacles.

China and foreign CEOs dance ever trickier tango

25 Mar 2024

Premier Li Qiang welcomed 100 bosses from giants like Apple to a Beijing business confab. Yet Tim Cook is shifting iPhone supply chains elsewhere, while China is pressing ahead with phasing out overseas tech like chips. The increasingly uneasy relationship is primed for missteps.

Capital Calls: Wegovy gets a booster

22 Mar 2024

Concise views on global finance: The US government’s decision to pay for weight-loss drugs for some older patients is a big step for makers Eli Lilly and Novo Nordisk. Not because it will boost their share prices, but because it makes current valuations less far-fetched.

Middle East AI dream depends on luring brainpower

22 Mar 2024

An abundance of cheap energy to power data centres gives artificial intelligence startups reason to consider the Gulf. But to become a force in AI, Saudi Arabia and the UAE will have to design their own advanced chips. Attracting talent to the region will require more than money.

Samsonite books a test flight out of Hong Kong

22 Mar 2024

The $6 bln luggage maker is planning another listing in addition to the Asian financial hub where its shares have long suffered from low liquidity. A resulting valuation uplift might be enough to convince potential suitors including KKR and Carlyle that a buyout could make sense.

Macron’s fiscal chickens come home to roost

21 Mar 2024

The French president is scrambling to deal with an official report likely to show dismal public finances and a deficit near 6% of GDP. He ignored warnings as debt topped 110% of economic output. Bond investors are relaxed but spending cuts will be the price of his insouciance.

‘Twin peaks’ can keep EU capital market push alive

21 Mar 2024

A two-pronged approach can aid Europe’s drive for a single financial market. By splitting oversight of the system’s safety from the policing of daily operations, Brussels can avoid a David Lynch-style mystery on who killed its plan to boost investments and savings across borders.

Japan’s first step to new normal is the easiest

19 Mar 2024

The central bank raised interest rates, ending 26 years of unconventional stimulus. Policymakers hinted they will keep borrowing costs steady for a while but the pressure to curb inflation, rather than unleash its virtues, may rise fast. The hard work for the country starts now.