Government & Agencies

EU members’ China cuddling weakens Brussels’ hand

16 Aug 2023

European Commission President Ursula von der Leyen wants to follow global peers and craft a common plan to manage economic ties with Beijing. Conflicting pressures from national capitals make that hard. Europe will struggle to find a policy that is both tough and trade-friendly.

Central bank peanuts highlight China’s policy gaps

15 Aug 2023

A surprise rate cut failed to soothe markets rattled by a weak economy and property defaults. The People’s Bank of China is limited by thin bank margins and the risk of outflows. Loose monetary policy won’t help demand, if President Xi Jinping keeps ducking bolder fiscal action.

Stingy UK bank saving rates may become a non-issue

10 Aug 2023

Regulators dislike the fact that lenders are passing on rate hikes more quickly to borrowers than to savers. But unlike in Spain, British banks like NatWest are no longer swimming in spare deposits. That suggests they’ll have to pay up for funds, solving the problem before long.

America’s new China curbs eschew scale for smarts

10 Aug 2023

The Biden administration’s plan for screening US investments in the People’s Republic is not the wide-ranging proscription many expected. It targets only a handful of deals, would ban even fewer and isn’t retroactive. That’s a relief for most investors – and for diplomacy, too.

Black Sea wheat war is sideshow for grain deal

9 Aug 2023

Russia is bombing Ukraine’s Danube ports while Kyiv hits its enemy’s ships in the Black Sea. Bumper harvests can cushion the shock on global wheat prices. But it would be in the two warring countries’ interest to strike a new food transport pact to allow their lucrative exports.

Capital Calls: Italian bank levy flip-flop

9 Aug 2023

Concise views on global finance: Rome has only partially soothed investors panicking over its windfall tax on lenders.

Capital Calls: Dish and EchoStar

8 Aug 2023

Concise views on global finance: Billionaire Charlie Ergen is reuniting the two satellite businesses he controls, beefing up the $4.5 billion Dish Network’s strained balance sheet as it tries to expand its wireless strategy.

Jho Low could create a new world of 1MDB pain

8 Aug 2023

The fugitive at the centre of Malaysia’s sovereign fund scandal, is in China. In this Exchange podcast Billion Dollar Whale co-author Bradley Hope explains why Beijing may soon give him up and how his return could be difficult for all involved, from global banks to celebrities.

Capital Calls: PIF, Siemens Energy

7 Aug 2023

Concise views on global finance: Saudi Arabia’s big sovereign wealth fund is getting bigger; the $13 bln German company unveiled a $2.4 bln charge due to persistent wind turbine problems.

UK net-zero ‘pragmatism’ is an odd way to get real

4 Aug 2023

PM Rishi Sunak says he cares about decarbonisation, but is also signing off new oil schemes. Uncertain energy transition costs make that a logical political strategy. But the government’s own data suggest relying on volatile gas over renewable power could be an expensive mistake.

One-two punch barely fazes Uncle Sam

2 Aug 2023

Donald Trump became the first US president to face two federal indictments while Fitch yanked the country’s AAA status. Washington is more volatile than it has been in decades. Yet a resilient economy and the world’s reserve currency make it hard to bet against the United States.

Republicans struggle to diverge from Bidenomics

1 Aug 2023

White House hopefuls such as Ron DeSantis are decrying the president’s record, which includes adding 13 mln jobs. Their agendas also prioritize US factories and energy independence, areas already allocated some $480 bln. It will take more creativity to break from existing policy.

The BRICS are better off disbanding than expanding

31 Jul 2023

Developing countries are understandably unhappy that rich nations don’t address their needs. But they won’t get much from a club including giant China and near-pariah Russia. Brazil, India and other emerging economies might achieve more by creating a new group, says Hugo Dixon.

Big Tech super-regulator would be a super-dud

27 Jul 2023

Two big-name senators – a Democrat and a Republican – want a new agency to police tech firms. The highly polarizing consumer watchdog shows why that's a bad idea. A better one: pass laws to update regulators that exist already. Big Tech remains Congress’s responsibility to shirk.

Government’s NatWest meddling crosses risky line

26 Jul 2023

The UK bank ditched CEO Alison Rose hours after backing her, amid pressure from its 39% state shareholder. It’s right for Rose to go. But voters may now wonder why politicians can’t also intervene in setting mortgage rates, and NatWest may find it hard to find a top replacement.

China’s stimulus tone hits a high pitch

25 Jul 2023

Party leaders are finally admitting they need to do more to support the $18 trln economy and its real estate market. Some fiscal tweaks and measures to speed home sales in big cities may follow. But in raising expectations, what Beijing considers a new normal remains a mystery.

Saudi Mbappé bid even less rational than it looks

25 Jul 2023

State-owned Al Hilal offered $1.1 bln in fees and pay for soccer star Kylian Mbappé, reports say. Spain’s LaLiga gets less in international broadcast revenue a year. Saudi’s nascent league would gain, but the data doesn’t suggest either it or “sportswashing” overall will work.

Egypt’s food tightrope has petrodollar safety net

24 Jul 2023

The collapse of the Russia-Ukraine grain deal is a big problem for the world’s top importer of wheat. Egypt’s battered economy will struggle as food prices spike. A $400 mln lifeline from the UAE, flush with oil cash, is one of leader Abdel Fattah al-Sisi’s few crumbs of comfort.

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.