Money‚ Markets & Macroeconomics

How to raise $420 bln a year for Europe’s defence

24 Feb 2025

The partial breakdown in the transatlantic alliance means the continent may need to double its defence spending. The money will have to come from a mixture of national budgets, European Union funds and perhaps a new vehicle. Many sacred cows will be slaughtered on the way.

Merz’s victory opens new era of German uncertainty

23 Feb 2025

Election exit polls in Europe’s top economy saw the conservatives win 29% of the vote, but record results for the far-right AfD. CDU leader Friedrich Merz faces a messy coalition with the SPD. That may take months, at a time when both Germany and the EU need rapid decisions.

UK could lure US talent with a ‘non-Don’ regime

21 Feb 2025

Britain has upset expats by ditching ‘non-dom’ rules that allowed them to swerve tax on offshore wealth. It could replace them by luring healthcare experts and scientists alienated by President Donald Trump’s upheavals. An influx of talented US émigrés could help revive growth.

Alibaba’s comeback has redeeming features

21 Feb 2025

The Chinese giant's market value is up 60% to $320 bln this year. The e-commerce unit is recovering, strengthening funding for its promising cloud and AI ventures. It vindicates boss Eddie Wu's decision to shelve a breakup. But fierce competition will keep margins under pressure.

New US Asia pivot is better timed than the last

20 Feb 2025

Defense Secretary Pete Hegseth wants to focus on ‘peer competitor’ China. Past administrations failed to do the same. But with the People’s Republic looking increasingly financially constrained, now might be a more opportune moment in which to contest Beijing’s global influence.

Elon Musk is not India’s ideal foreign investor

20 Feb 2025

The country's high import levies have failed to get the Tesla boss to make his vehicles locally. New Delhi may be considering concessions and exemptions to entice him instead. But Donald Trump's trade wars leave India with less leverage to wrangle coveted factory jobs from Musk.

German elections chart course for a lonely Europe

20 Feb 2025

Voters in the EU’s largest country are set to go to the polls as US leaders threaten to withdraw military support from the continent, economic malaise lingers, and the far-right AfD gains ground. In this Viewsroom podcast, Breakingviews columnists debate the electoral stakes.

Trump reciprocal tariffs are key test of EU unity

19 Feb 2025

The president’s threat to match foreigners’ US levies may mean he targets individual European Union member states. The EU’s common approach to trade complicates retaliation. If some countries in the bloc stop others from fighting back, it could ramp up internal strife.

India’s banks will struggle to keep equities crown

19 Feb 2025

Kotak joined the ranks of the top 10 stock underwriters globally in 2024, a first for the country's financiers. Compatriots are doing well too. A record $71 bln of fundraising activity in rich local equities helped. It'll be hard to repeat as markets elsewhere come back to life.

BHP’s copper dreams get a glimpse at reality

18 Feb 2025

The red metal has grown to almost 40% of the $130 bln miner's EBITDA, in part because prices for its main product, iron ore, fell. It could speed up diversification by buying a rival like Anglo. But with valuations not on his side, CEO Mike Henry is stuck on the slower path.

Beware of Chinese stocks AI siren song

18 Feb 2025

Xi Jinping's meeting with tech bosses caps a rally that added $210 bln of market value to Alibaba and Tencent. The president’s support for private firms builds on DeepSeek's success. It also precedes the next challenges: how to manage price wars and Beijing's strict AI rules.

Europe and Trump risk Russian sanctions showdown

17 Feb 2025

The US president’s wish for a quick truce in Ukraine could prompt him to lift the measures slapped on Russia by Washington since 2014. The EU and UK would be loath to follow suit, but that would leave them in a tight spot, notably if it helps Putin rebuild his military.

For TSMC, Trump can make an Intel deal appeal

17 Feb 2025

Taiwan's $840 bln chipmaker might take a stake in its ailing rival's factories at the behest of the US. Such a deal makes no financial sense. But with the president threatening tariffs and more, it may be a small price to pay for the Asian giant to protect its top market.

China can steal a march on US tariff uncertainties

14 Feb 2025

Donald Trump’s trade war will take weeks or months to shape up. Rather than waiting for the dust to settle on the $600 bln relationship, rolling out bold stimulus to tackle domestic challenges is Beijing’s best course. A strong economy will shore up China's negotiating position.

Ukraine ‘peace dividend’ will be paid by Europe

13 Feb 2025

President Donald Trump’s talks with Russian counterpart Vladimir Putin may end Moscow’s war. For the EU this won’t mean lower defence spending. The likely end of the US security blanket, and an emboldened Russia, will force Europeans to accelerate their military overhaul.

Japan’s M&A wave is just getting started

13 Feb 2025

The country’s corporate giants, nudged by reform, are exploring big deals. Carmakers Honda and Nissan, convenience store 7-Eleven’s owner and others are testing waters at home and abroad. In this week’s Viewsroom podcast, Breakingviews columnists debate how far it will go.

US is biggest loser from Trump’s metals tariffs 

13 Feb 2025

The president's 25% levy on steel and aluminium imports is meant to keep out China and help local industry. But boosting output would take years and huge investment with murky returns. That would keep the US reliant on Canada and producers like Rio – only at a higher price.

Ending US aid will heat up sovereign debt fights

13 Feb 2025

There’s a strong case for reforming the global foreign-assistance industry. But President Donald Trump’s approach is blunt and deadly. It may also trigger a crisis in low-income countries that are heavily dependent on aid before it provides Washington any extra leverage.

Sticky inflation is a quagmire for tariff plans

12 Feb 2025

A surprisingly high 3% annual rise in US prices threatens to halt interest rate cuts from the Federal Reserve, and that’s before new tariffs go into effect. Policymakers seem to see gutting spending as the preferred fix. Scrapping inflationary trade barriers is a better bet.

India’s travel boom enters the departure lounge

12 Feb 2025

The $12 bln Indian Hotels, owner of the luxury Taj brand, is emerging as a flag bearer of the country's tourism boom. It plans to more than double its properties to over 700 by 2030. But as domestic room tariffs hit the roof, Indians are increasingly eyeing overseas destinations.