Government & Agencies

Britain solves half of its wind power problem

16 Nov 2023

After a humiliating failed auction, the UK is hiking green energy subsidies. That will draw bidders, and the resulting power should still be cheaper than gas. But to hit a target of 50 GW of offshore wind by 2030, PM Rishi Sunak will need to allot more cash in new bidding rounds.

Biden-Xi summit clears low bar, reaches no heights

16 Nov 2023

The US and China leaders agreed to resume military communications, work to curb fentanyl production and discuss the risks of AI. It reduces the risk of an accidental war over Taiwan but the otherwise thin pickings highlight a fragile world where managing conflict tops the agenda.

Measuring the US and China’s conscious decoupling

16 Nov 2023

President Joe Biden and his Chinese counterpart Xi Jinping don’t agree on the terminology, but the Sino-American relationship is fracturing. A close look at trade, finance, investment, people and geopolitical noise shows the world’s two largest economies are pulling apart.

Legal blow makes Germany and Europe sicker

15 Nov 2023

Berlin’s top court blocked the government’s use of creative accounting for investments. That may jeopardise Chancellor Olaf Scholz’s $65 bln growth fund and mean less money for the energy transition. Europe’s biggest economy may also want more fiscal rigour from its EU peers.

China’s property boost has to sway wary banks

15 Nov 2023

Beijing wants to inject 1 trln yuan into housing projects. It’s a bigger version of a 2022 scheme lenders shunned because developers are saddled with huge debts. Without a broader plan to convince banks the government can stop the real estate rot, the new effort will also fail.

Capital Calls: UK M&A guidelines

13 Nov 2023

Concise views on global finance: Prime Minister Rishi Sunak is now shaking up his own government’s takeover rules.

The West could live with a frozen Ukraine conflict

13 Nov 2023

For Kyiv and its allies a stalemate is not as good as a victory. Ukraine would need help shoring up its defences, and there’s a cost to maintaining sanctions against Russia. But triumph is unlikely and a deadlock would still mostly achieve the main goal: denying Moscow victory.

Australia climate refugee policy is hard to scale

13 Nov 2023

Canberra will welcome Tuvalu’s 11,200 citizens as rising seas threaten the Pacific Island country. It’s smart geopolitics from a top fossil-fuel polluter. But unless emissions are cut fast, there will be hundreds of millions of climate migrants clamouring to enter rich states.

IPO laggards’ race to the bottom misses the target

10 Nov 2023

Italy is siding with the UK in changing listing rules to stop firms moving to foreign venues. Greater voting power for founders may appeal to tech or family-owned companies. Yet Rome’s high debt and slow growth mean that, like in Brexit-battered Britain, the exodus may continue.

Weak Biden-Xi handshake would send strong message

10 Nov 2023

The US and Chinese presidents may meet next week in San Francisco as tit-for-tat retaliations pressure trade. Beijing remains combative towards Taiwan while Americans coalesce on anti-China issues. De-escalating tensions can benefit both sides but is not politically expedient.

Biden’s economic scorecard touts fragile advantage

9 Nov 2023

Low unemployment and easing inflation should aid the US president’s reelection push. Yet most Americans aren’t impressed, and rising borrowing costs don’t help. A Breakingviews tally gives Biden a narrow economic lead over Republicans. The next 12 months will test that advantage.

Hong Kong finance summit tiptoes around China

9 Nov 2023

Executives from Apollo’s Marc Rowan to UBS’s Colm Kelleher gathered in the Asian city to debate markets, debt and regulation. Yet few mentioned slow growth and slumping real estate across the border. For firms straddling the geopolitical divide, some topics are best avoided.

Portugal’s crisis threatens growth resurgence

8 Nov 2023

Prime Minister António Costa’s resignation casts a shadow on some of Lisbon’s crucial new energy projects. The relatively vibrant economy was already heading for a slowdown. A swift end to the political upheaval would reassure foreign investors and Lisbon’s EU partners.

Workers are missing cog in US manufacturing gears

7 Nov 2023

Government subsidies have sparked a construction bonanza, with spending on microchip, EV and other factories running at an annualized pace of $200 bln, 60% more than a year ago. Buying the needed equipment comes next. Filling all the new jobs, however, will be the hardest part.

Vanke’s safety net models new face of China Inc

7 Nov 2023

The $18 bln property developer’s shares jumped after its owner Shenzhen Metro pledged unreserved support and a $1.4 bln tool kit should it need a rescue. As the state takes a bigger role in business, Vanke illustrates how that could reduce both returns and risks for investors.

Chinese firms are reluctant national team players

6 Nov 2023

Regulators are rallying domestic investors to help prop up the country’s frail stock market. More than 1,100 companies led by battery giant CATL have responded by spending $9 bln buying back shares. Yet that’s only a tepid increase from 2022. Corporate support looks half-hearted.

Rich countries are stumbling into a debt trap

3 Nov 2023

Large deficits and higher interest rates are pushing up the cost of servicing hefty piles of sovereign borrowing. Elusive growth, stubborn spending and hawkish central banks make it hard for governments to regain control. Little wonder bond investors are heading for the exit.

Treasury’s borrowing boom is gust before the storm

1 Nov 2023

Between the Federal Reserve’s interest-rate pause and the US government’s $112 bln borrowing splurge, there’s plenty to drive yields higher. But the reason Treasury markets are so susceptible to turbulence is the bigger problem: too much debt, and no plan to get it down.

Li Keqiang death dilutes China reform promise

27 Oct 2023

The premier’s 10-year tenure began with hopes for a market-friendly revamp. Efforts to make state firms more efficient through private capital had all but reversed course as he left office. His sudden passing will further weaken the case against Beijing’s sprawling interference.

Qatar can weather latest foreign stress test

27 Oct 2023

The Gulf emirate is under scrutiny for its links to Hamas, six years after a blockade by neighbours. One risk is that its $450 bln sovereign wealth fund gets a frostier reception. But Doha’s giant gas reserves and its role as mediator and US ally should protect its clout.