Government & Agencies

Capital Calls: Chevron

24 Jul 2023

Concise views on global finance: The $300 bln oil giant’s second-quarter profit was cut nearly in half as production rose slightly. It reflects lower prices but there also are signs the industry has learned how to make itself more durable.

NatWest goof is a boon for sketchy bank clients

21 Jul 2023

The UK lender’s CEO apologised to right-wing talking head Nigel Farage amid an account-closure row. Britain will now force banks to respect freedom of expression. Yet that may make it harder to ditch other, more problematic clients – and weaken the fight against money laundering.

Spain’s next PM will have to fix economy pronto

21 Jul 2023

Left-wing incumbent Pedro Sánchez trails his conservative rival ahead of Sunday’s poll. Whoever forms a government will need to move fast. Robust growth – and 161 bln euros in EU funds – offer an opportunity to tackle joblessness, low investment and loose public finances.

Biden has too much confidence in Bidenomics

20 Jul 2023

The president’s new slogan parades a revival of US manufacturing and jobs. Spreading the word now, however, could backfire. Sticky inflation and slower hiring are out of Biden’s control, and they could leave voters poorer or jobless by the time they reach the ballot box.

UK is in danger of becoming the Nigeria of wind

20 Jul 2023

Ex-PM Boris Johnson wanted Britain to be for green energy what Saudi Arabia is for oil. Yet Vattenfall is halting a key offshore wind scheme, and it’s not clear if the UK will let developers hike prices to offset soaring costs. The more apt OPEC comparison is output-hit Nigeria.

China risks leaving it too late to stimulate

17 Jul 2023

The world’s second-largest economy grew a slower-than-expected 6.3% in the second quarter. Yet despite weakness in property and consumption, there are pockets of strength. Hitting the 2023 growth target looks less certain and a sharper slowdown could yet catch Beijing off guard.

Saudi golf shot plays through CFIUS hazards

14 Jul 2023

US lawmakers grilled PGA bosses about the deal they struck with the kingdom’s rival upstart. AT&T’s former CEO also quit a board in protest. Despite the concerns, Riyadh already owns stakes in EV-maker Lucid, video-game maker Scopely and more. Its soft-power game is strong.

Germany’s China policy caps pain for its companies

14 Jul 2023

Europe’s biggest economy has a new strategy to limit exposure to China and align more with Brussels and Washington. Yet a previous version of the plan was tougher. Big China-focused corporates like BASF and Volkswagen will be relieved they can de-risk at their own pace.

Thames Water’s leaky financials are far from fixed

13 Jul 2023

The privately owned UK water company managed to cobble together a rescue from existing shareholders. But in this Viewsroom podcast, Breakingviews columnists discuss why the fresh funds may not be enough, and the threat of nationalisation hangs over the sector as a whole.

The US government needs a real estate rethink

11 Jul 2023

A proposal floating around the Senate suggests the government could solve a housing shortage by building on federal land. That's a stretch. But Uncle Sam's real estate investments are some of the worst in America, and being concentrated in one expensive city is a risk.

UK growth plan aims pea-shooter at monster problem

11 Jul 2023

Finance minister Jeremy Hunt wants Britain’s $2.5 trln pension system to invest more in private equity and startups. His scheme avoids the risky idea of forcing managers into buying British assets. But it’s too fuzzy and timorous to solve the country’s dismal lack of investment.

How to crack the climate free rider problem

10 Jul 2023

One reason countries fiddle while the world burns is that they bear the costs of action while everyone benefits. Creating a “climate club” would incentivise nations to pull their weight. But a lot of geopolitical stars first need to align, says Hugo Dixon.

Adani case threatens watchdog’s rising credibility

6 Jul 2023

Indian regulator Sebi has disciplined two media tycoons for alleged wrongdoing and strengthened disclosures for foreign investors. The moves fit Chair Madhabi Puri Buch’s tough reputation. But an inconclusive probe into the billionaire’s dealings could undermine recent progress.

Czech sphinx’s Casino bet trumps French insiders

5 Jul 2023

The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.

UK’s leaky water model faces a growing storm

5 Jul 2023

Thames Water’s financial strife has put privately held UK utilities under the spotlight. The sector’s huge investment needs mean bills have to rise yet further. Politicians are likely to ramp up their scrutiny of shareholder returns, and the model of private ownership itself.

China’s rare metals swipe has more bark than bite

4 Jul 2023

Beijing is imposing export controls over gallium and germanium, used in chips, fibre optics and military equipment. This confirms Western fears that the country might leverage its strategic metals dominance to push back on sanctions. Yet market realities blunt China’s edge.  

Ukraine can rebuild without a Russian asset grab

30 Jun 2023

Using Moscow’s frozen assets to fund Kyiv’s $400 bln-plus recovery risks violating the rule of law. Suing Russian entities for the damages brought by the war is more promising. It allows Ukraine to build up claims that would be part of future peace talks.

Capital Calls: KKR’s reluctant bidding war

30 Jun 2023

Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.

Resetting student loans brings Econ 101 lessons

30 Jun 2023

Some 43 mln college grads may feel less confident financially with the Supreme Court striking down President Joe Biden’s debt forgiveness plan. Big chunks of income are no longer freed up. Payments also start anew soon after a Covid hiatus, adding another drag for many consumers.

UK water meltdown resurrects bank crisis dilemmas

29 Jun 2023

The government may take over indebted 18 bln pound utility Thames Water. Funding a big potential capital hole via bills and taxpayer cash injections could be as politically toxic as 2008-era bailouts of RBS and peers. But imposing losses on creditors may spark even more turmoil.