Government & Agencies

Gary Gensler crafts SEC into a mighty sandcastle

25 Jan 2024

The chief US securities watchdog has outpaced predecessors in making rules and extracting penalties from firms like Morgan Stanley and D.E. Shaw. But his aggressive approach has inflamed a wider war on regulation. Gensler’s accomplishments could yet wash away.

Capital Calls: Greek airport IPO

25 Jan 2024

Concise views on global finance: The Athens government is selling 30% of the country’s biggest airport operator, aiming for a market capitalisation of up to 2.4 bln euros.

Take China’s easing signal with a pinch of caution

25 Jan 2024

Beijing is releasing $140 bln of liquidity at banks, trimming some lending rates, and talking up measures to boost the appeal of stocks. It is also pressing on rebalancing the world’s second largest economy. In a grand overhaul, short-term pain can only be managed to a point.

ECB is battling an imaginary wage spiral

24 Jan 2024

European Central Bank President Christine Lagarde is set to hold rates this week because she fears rising salaries will boost inflation. Yet euro zone workers are getting raises of just 3.8%, down from a year ago. Frankfurt may not want to cheer bigger pay, but it can ignore it.

Four-day week is clever fix to economic malaise

24 Jan 2024

Companies including EssilorLuxottica and Panasonic are experimenting with shorter working weeks. Pilot schemes have led to revenue increases, declines in burnout rates and lower churn. It’s an anti-inflationary way to keep staff happy and give them free time to consume more.

Fractured world is changing investment geography

23 Jan 2024

Washington and Beijing’s quasi-Cold War, and rising protectionism, are already hurting foreign direct investment. Though some states are gaining from China’s falling FDI, overall cross-border flows are down. If Trump becomes US president, they will take another hit.

Strong yuan, not stock market, tops Xi’s wish list

23 Jan 2024

The State Council pledges it will promote a stable capital market. Yet Beijing is showing more urgency in supporting the yuan, weakened by foreign selling. A strong currency is central to President Xi Jinping’s goal to make China a financial power. A strong stock market can wait.

Red Sea oil tension may revive Russia-Saudi spat

22 Jan 2024

Exchanges of fire between Yemen’s Houthis and the US military have hiked costs for Moscow to ship oil via the Suez Canal to China and India. One upshot could be Russia loses market share to Saudi Arabia. That may reopen the sort of tensions that led to the duo’s 2020 price war.

It will take more than Draghi to boost EU growth

22 Jan 2024

Europe can’t decide if it will be more competitive with open markets or heavily protected national champions, and it wants Mario Draghi to pick. Italy’s former PM is more likely to reflect than resolve tensions among members. But the bloc can’t up its game behind closed doors.

Capital Calls: Birkenstock

19 Jan 2024

Concise views on global finance: The German sandal maker gets a reality check from investors three months after its much-hyped IPO.

Global risk pile-up penetrates Davos bubble

18 Jan 2024

Nearly 3,000 movers and shakers have converged on the Swiss resort amid crises in the Red Sea, Gaza and Ukraine. In this Viewsroom podcast, Breakingviews columnists discuss how Davos-goers unable to ignore these perils are nervously anticipating another Trump presidency.

China’s war on corruption turns into high wire act

18 Jan 2024

Xi Jinping is declaring victory in his decade-long war on graft. He has made more progress than India and the US over the same period by some global standards. Yet the decision to double down on cleaning up the finance sector when the economy is weak could come at a heavy cost.

US Steel deal stokes fiery stakeholder standoff

17 Jan 2024

The $14 bln sale to Nippon Steel is riling workers and politicians. A rival Cleveland-Cliffs bid will attract trustbusters. Staying independent would anger shareholders and squeeze automakers. It epitomizes today’s fraught M&A, but the Japanese buyer is in the strongest position.

Time for EU to assist its solar panel industry

17 Jan 2024

Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.

China consumers keep Beijing, and world, on edge

17 Jan 2024

The economy expanded 5.2% last quarter, thanks to manufacturing. But local demand remains weak, forcing factories to look abroad. That will stoke global trade tensions and add to fears that China will export deflation. All eyes are on how Beijing stimulates domestic consumption.

Economics is pushing US swing voters to pick Trump

16 Jan 2024

The real estate mogul won the Iowa caucus, the first Republican primary in the presidential race. The midwestern state is not a battleground, but hotly contested areas favor him over President Joe Biden. That may be because their residents feel poorer than four years ago.

Capital Calls: Greek airport IPO

16 Jan 2024

Concise views on global finance: State-backed Athens International Airport may be able to fetch a 3 bln euro valuation in a planned February listing.

Iron ore investors mine irrational exuberance

16 Jan 2024

The mineral's recent 40% jump has sent BHP, Fortescue and Rio's Aussie-listed shares towards record highs. Yet the trio's earnings are below their peak, as is the commodity, whose price is expected to fall. Absent a sudden upswing in China's economy, the rally looks overdone.

Fujitsu’s tricky UK dilemma: double or quits

12 Jan 2024

The $29 bln Japanese firm’s faulty accounting system led to the convictions of Post Office workers. With 7% of global sales in Britain, Fujitsu may need to offer compensation. But if its reputation means it can’t secure future state contracts, that might not be worth it.

The spectre of Donald Trump hangs over Davos

12 Jan 2024

The former US president is not among the 2,800 business and political leaders converging on the Swiss resort. But his possible return to power will pervade debates about Ukraine, China, and climate change. In 2016, Davos laughed off the idea of a Trump presidency. Not this time.