Government & Agencies

COP28 deal just about keeps net zero on the road

13 Dec 2023

Nations at the climate shindig agreed to start transitioning away from fossil fuels. The wording could have been tougher and clearer, and the world still faces harmful warming. But the Dubai meeting could have yielded a damaging standstill, rather than a baby step forward.

Capital Calls: OpenAI’s Microsoft dilemma

11 Dec 2023

Concise views on global finance: When boss Sam Altman’s ouster threatened to implode the ChatGPT maker, $2.7 trln backer Microsoft helped restore order. That necessary boon, however, will draw ever-more trustbuster scrutiny about tech giants’ unshakable influence in AI.

COP28 oil-fest still has a path to credibility

8 Dec 2023

Unlike Glasgow’s COP26, Dubai’s version of the global climate meet has involved polluters like Exxon Mobil. COP28 President Sultan al-Jaber’s dual role as an oil boss has also come under intense scrutiny. Yet his renewables goals also imply global crude output may soon wane.

Energy transition investing is caught in traps

8 Dec 2023

COP28 attendees pledged to triple renewables, but there’s still no plan to quit fossil fuel. Brookfield’s $13 bln joint bid for Aussie emitter Origin lined up a poster child deal for how companies can make the leap. Its failure has lessons for the world’s broader efforts.

China’s state pension fund joins the national team

7 Dec 2023

The $400 bln National Social Security Fund will be allowed more flexibility on equity investments, per new draft rules. It’s the first big asset allocation overhaul in over 20 years, so change was due. It also signals Beijing is sparing no effort to shore up the capital market.

UK, EU trade détente leans on Chinese threat

6 Dec 2023

The European Union fell in line with UK demands to ease part of Boris Johnson’s Brexit deal. Delaying tariffs on battery parts helps carmakers like Volkswagen sell to Britain and fend off competition from China. But Brussels has reason to be tougher on other issues, like finance.

Poll wins dangle prospect of rich Modi third term

4 Dec 2023

India’s ruling BJP beat expectations in state elections. Premier Narendra Modi seems strong heading into the national vote. Though an unreliable predictor, the results will enthuse those looking for policy stability and hard-to-reach reforms in the world’s fifth largest economy.

COP28’s big dilemma: fossil fuel cuts, or fudges

28 Nov 2023

The success of the Dubai climate shindig rests on how much it slashes emissions via cuts to oil production, and how much it relies on carbon storage or removal. In this Exchange podcast, Energy Transitions Commission chair Adair Turner warns against relying on the latter.

EU is ill-equipped to meet growing global threats

27 Nov 2023

The bloc would be more effective in a dangerous world if its 27 members could make decisions more quickly. The snag is that nationalistic currents make countries even more reluctant to give up their vetoes. It is not clear if the European Union can find a way to square the circle.

Foxconn is still running with difficult status quo

27 Nov 2023

Terry Gou’s exit from Taiwan’s presidential election race may shield the $45 bln firm he founded from immediate political crossfire from Beijing. However, the Apple supplier’s push to move production outside of China leaves it firmly on frontlines of rising cross-strait tensions.

German budget crisis will haunt economy for years

24 Nov 2023

Berlin will suspend its "debt brake" this year, after a court decision cancelling 60 bln euros of spending. Yet the crisis will leave Germans even warier of much-needed public investment. That will hit long-term growth, and worsen the ailing economy’s short-term woes.

Britain is case study in death-duty dysfunction

24 Nov 2023

UK politicians have been mulling inheritance tax tweaks. Death duties are good policy, but the British version is beset with exemptions that favour wealthy landowners and pensioners. Given the problem may worsen, there’s logic in cherry-picking from better approaches overseas.

Dutch shock points to tremors in Europe’s core

23 Nov 2023

Geert Wilders’ anti-immigrant, anti-EU Freedom Party came first in Netherlands elections. That means long coalition talks leading to an unstable, unpredictable government. His ascent hurts European policymaking and boosts chances of once fringe parties in states like France.

Every country needs an Inflation Reduction Act

23 Nov 2023

The US's $370 bln in green subsidies left allies fearing they’d be at a disadvantage. Now they’re realising that adapting the blueprint can unlock private capital, boost economies and speed up the energy transition. Funding remains a challenge, but not an insurmountable one.

White House needs to talk turkey about inflation

22 Nov 2023

The Biden Administration has encouraged Americans to “be thankful” for falling prices this year. But cherry-picking some items that have edged down from recent peaks won’t counter the fact that US citizens feel glum about the economy. A bit of empathy might go a long way.

UK’s overdue business-friendly budget has a catch

22 Nov 2023

Premier Rishi Sunak slashed taxes for workers and businesses at an annual cost of 20 bln pounds. It’s a partial antidote to the damage of Brexit, inflation and Britain’s dismal growth. Yet his party’s erratic policies, and poor chances at next year’s poll, will dent its impact.

EU fiscal pact ignores green elephant in the room

21 Nov 2023

The bloc’s budget goals failed to keep national debts in check. On average, they are now 83% of GDP, well above target. A revamp is a step forward. Yet with the climate challenge set to strain state finances, new rules alone will do little without more jointly funded investments.

Capital Calls: Monte dei Paschi

21 Nov 2023

Concise views on global finance: The Italian Treasury raised 920 mln euros by selling a 25% stake in the bank on the open market. So far, it looks like a better outcome for taxpayers than submitting to the onerous sale conditions offered by UniCredit in 2021.

UK pay-later fiscal giveaway amounts to self-harm

20 Nov 2023

Faster growth and inflation may gift Rishi Sunak a 13 bln pound war chest ahead of Wednesday’s budget update. But that’s only thanks to optimistic math. If Britain’s prime minister opts for fiscal fireworks, he may torch public spending and singe Britain’s prospects.

Biden and Xi’s warmer ties look flimsy

16 Nov 2023

The leaders of the largest economies resumed high-level communication following years of tension. In this Viewsroom podcast, Breakingviews columnists explain how Taiwan as well as anti-China rhetoric in the lead-up to next year’s US election could undo any goodwill.