Government & Agencies

Fintech fight tests Fed’s transparency mission

19 Jan 2023

The Federal Reserve will soon disclose which firms it approves for valuable master accounts. It’s the latest in the central bank’s push toward greater transparency, but change has been slow. Fintechs seeking master accounts of their own will check the Fed’s sincerity.

Hope and optimism are surprise guests at Davos

19 Jan 2023

Business leaders like Bank of America’s Brian Moynihan and Microsoft’s Satya Nadella are attending this week’s World Economic Forum. In this Viewsroom podcast, Breakingviews columnists give a view from the ground, debate the upbeat tone and explain why politicians stayed home.

UK reaches limits of drug penny-pinching

19 Jan 2023

AbbVie and Eli Lilly pulled out of Britain’s pharmaceutical pricing agreement, due to shrinking returns. The UK’s single health service helps it play hardball with Big Pharma. Yet drug research is collapsing, hurting jobs and citizens’ health. There’s a case for spending more.

Capital Calls: Dr. Martens’ stomping

19 Jan 2023

Concise views on global finance: The bootmaker’s stock fell nearly 30% after a profit warning on Thursday, and is down 60% since Permira listed it in 2021.

Expansionist dreams threaten ECB digital euro plan

17 Jan 2023

As the European Central Bank develops its own online currency, politicians want a big say. Hostility from some rubs against the ECB’s cautious enthusiasm. Yet if political forces push a digital euro to be more global than the ECB is ready for, it may weaken financial stability.

UK has wrong approach to EU-style strike limits

16 Jan 2023

British PM Rishi Sunak wants to force minimum service levels during public sector strikes, as exist in the rest of Europe. But the plan is too broad and coercive, looking like a knee-jerk reaction to the current unrest. It needs to be better thought-out, in a pacified atmosphere.

The fog in the English Channel is clearing a bit

16 Jan 2023

Britain won’t rejoin the EU soon, despite voters’ regrets over Brexit. But if the two sides resolve a Northern Ireland dispute there could be progress on topics such as climate, foreign policy and financial services. Much may have to wait for a new UK government, says Hugo Dixon.

China policy pendulum swings towards speculators

16 Jan 2023

President Xi Jinping wants homes for living, not for leveraged get-rich-quick schemes. But demand for primary residences alone can’t revive growth given property drives 25% of the $18 trln economy. Xi’s willingness to sacrifice financial performance for ideals faces another test.

The Davos party returns, with the shakes

16 Jan 2023

Business leaders including JPMorgan’s Jamie Dimon and Chevron’s Mike Wirth are back in force at the World Economic Forum’s Swiss shindig. But heads of state who shape corporate fates more than ever are mostly staying home. It’s symptomatic of a divided, uncertain world.

Capital Calls: BlackRock, Tim Cook’s pay

13 Jan 2023

Concise views on global finance: The asset manager edges closer to its Blackstone roots by expanding in private investments; compensation for Apple’s CEO re-enters Earth’s atmosphere.

Banks’ profit picnic will attract ant invasion

12 Jan 2023

Rising rates create a feast for large lenders like JPMorgan and Bank of America, even as investment banking fees wither. But customers, employees and regulators are all vying for a slice. The risk for investors isn’t that recession bites in 2023, but that expenses gnaw.

Global energy prices face a turbulent 2023

12 Jan 2023

The cost of natural gas has halved from a peak last year thanks to warmer weather and bulky European stores. In this Viewsroom podcast, Breakingviews columnists discuss why it’s too early for companies and households to rule out further supply shocks and price volatility.

China’s property debt red lines need a redraw

11 Jan 2023

The policy Beijing introduced in 2020 to cap developers' leverage is backfiring. The “three red lines” on debt ratios are now aggravating market stress and impairing balance sheets. Officials are considering blurring or moving the lines. They might have to erase them.

How geopolitical shocks will spread in 2023

10 Jan 2023

Traders and chief executives were caught out by shock events in 2022. In this Exchange podcast, Tina Fordham, founder of Fordham Global Foresight, discusses the new risks emerging from China, Iran and Russia this year.

China’s wolf warriors start 2023 in retreat

10 Jan 2023

Beijing has taken the mic away from combative foreign ministry spokesperson Zhao Lijian. His transfer follows other de-escalatory moves like a thaw in trade with Australia and calls for healthier U.S. relations. But it will take years to undo the damage from nationalist trolls.

Brazil protests expose lack of U.S. risk premium

9 Jan 2023

Rioters stormed the country’s Congress in an echo of the U.S. Capitol attack two years earlier. Investors view 10-year Treasury bonds as close to risk-free while attaching a hefty yield to Brazilian debt. Doubts about democracy eventually show up in economic figures, though.

Smarter taxes could ease UK productivity crisis

9 Jan 2023

Britain is the sick man of Europe again, due mostly to workers’ weak output. It needs an extra 115 bln pounds of annual investment just to match G7 peers. The government’s best bet is to prod businesses to spend more with tax incentives, funded by levies on wealth and property.

Capital Calls: AstraZeneca

9 Jan 2023

Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.

Jack Ma’s Ant is China tech’s tiniest bellwether

9 Jan 2023

The founder is ceding control of his fintech giant, sending shares of affiliate Alibaba up 7%. The move was expected, yet investors clearly see Ant's rehabilitation as symbolic. That may be misguided, but any excuse to reevaluate China’s beat-down internet sector will do.

China’s TikTok wins while U.S. dillydallies

6 Jan 2023

The social media app has stopped hiring people that would help appease U.S. regulators. Congress is slow – a reflection of Americans apathetic about sharing data. But impaling companies with taxes and tariffs happens regularly. As politicians delay, China tiptoes into homes.