Money‚ Markets & Macroeconomics

Time to target fossil fuel demand, not supply

11 Sep 2023

Climate activists want countries and companies to stop producing oil, gas and coal. It would be more effective to focus on cutting demand for fossil fuels – by campaigning for carbon taxes, green subsidies and faster licences for renewable energy, says Hugo Dixon.

Deal cops start practically walking the beat

8 Sep 2023

Rebuffed by court losses, US trustbusters seem almost conciliatory, dropping lawsuits against drugmaker Amgen’s $28 bln Horizon deal and ICE’s $12 bln takeover of Black Knight. Hardliners may object, but imposing tough remedies paves the way for stiff scrutiny that’s sustainable.

New boss will be EIB’s chance to stay relevant

7 Sep 2023

The European Investment Bank will soon appoint a successor to Werner Hoyer. Like peer the World Bank, it needs to find ways to take more risk with its 65 bln euros of annual lending and help the green transition. The challenge will be keeping member states and markets onside.

Investors’ China aversion is bad for everyone

7 Sep 2023

Fund managers are slashing exposure to the world’s second-largest economy, just five years after mainland stocks joined global benchmark indices. Geopolitical tensions mean some of the retreat is permanent. The pullback will hurt China as much as it will pain global investors.

Saudi’s odd telco raid is copycat with logic

6 Sep 2023

State-backed operator STC spent $2 bln to buy 10% of Spain's Telefonica. It mimics Abu Dhabi's move on Vodafone, except this target is not cheap and has few ways to boost value. Riyadh's main aim may be to test Europe's openness to it investing in other critical infrastructure.

Capital Calls: Saudi oil gambit

6 Sep 2023

Concise views on global finance: The world's top crude exporter is extending its 1 million barrels a day production cuts until the end of 2023 to boost prices.

Orsted is losing big in wind’s political lottery

6 Sep 2023

The $23 bln group has shed a third of its value since flagging $2 bln in US impairments last week. Orsted is not the only offshore wind player wanting states to sweeten subsidies. But its threat to quit projects if that doesn’t happen might leave it without a valid rebound story.

Europe faces dirtier inflation fight than US

6 Sep 2023

The euro zone is trying to emulate the United States by avoiding a recession and hefty job losses, despite raising rates. The bloc may only half succeed. Weak activity, scarce credit and higher borrowing costs all point to a downturn. European workers, though, could be spared.

Capital Calls: Lithium M&A

4 Sep 2023

Concise views on global finance: Albemarle’s $4.3 bln sweetened all-cash offer for lithium miner Liontown has financial merit, as well as offering it a handy hedge against Chile’s plan to nationalise resource assets.

Missing metals hit green economy pressure point

1 Sep 2023

Shares in copper producer Aurubis fell 15% after it said inventory wasn’t where it was supposed to be due to “criminal activity”. The commodity is vital for electric cables and batteries. With demand set to outstrip supply, key-metal fraud is a risk for the low-carbon transition.

Capital Calls: Temps frayed

1 Sep 2023

Concise views on global finance: Despite adding another 187,000 jobs in August, the number of short-term workers such as event staff kept falling in the United States. It’s a sign of a weakening labor market and, history suggests, a recessionary omen.

Capital Calls: Microsoft in the EU, Dollar General

31 Aug 2023

Concise views on global finance: The software giant will sell its Teams communications app separately from other software in the European Union; the discount retailer’s poor results reflect a more resilient US economy.

With housing, Buffett chooses a great location

30 Aug 2023

The billionaire’s Berkshire Hathaway recently backed US homebuilders such as Lennar even as mortgage rates rose. Although Americans will pay more in interest, higher wages can make up the difference. Plus, existing home sales have ground to a halt. Builders are in prime position.

African coups will exacerbate grab for resources

30 Aug 2023

Military revolts in Niger and Gabon are destabilising two resource-rich nations. That’s bad news while the continent struggles with rising interest rates, no market funding and poor governance. Uncertainty will intensify global powers’ rivalry for control of oil and minerals.

Shady export leaks suggest Russian sanctions work

29 Aug 2023

A suspicious bump in European exports to countries like Kazakhstan may be helping Moscow evade Western bans. The G7 price cap on Putin’s oil is also porous. But these cracks are marginal and help demonstrate the embargoes’ effectiveness – and why they can be tightened.

China’s sliding currency is vote of no confidence

24 Aug 2023

The People’s Republic is scrambling to stop the yuan’s weakening against the US dollar. In this Viewsroom podcast, Breakingviews columnists discuss capital flight pressures and tepid investor interest in the world’s second largest economy, and what that means for the wider world.

Capital Calls: Diversity initiatives

23 Aug 2023

Concise views on global finance: The group that got the Supreme Court to overturn affirmative action at universities is suing financial firms to end programs for diverse applicants. It will make companies rethink recent diversity initiatives.

Volkswagen’s China shortcut will tempt rivals

23 Aug 2023

The $69 bln carmaker is investing in Xpeng and doubling down on cooperation with state-backed SAIC. As Toyota, Ford, BMW and their peers navigate increasingly tough competition in the Chinese market, VW’s plan to reboot its electric vehicles presents a timely but tricky roadmap.

Capital Calls: Coinbase’s Circle deal

22 Aug 2023

Concise views on global finance: Crypto exchange Coinbase is investing in struggling $26 bln stablecoin issuer Circle. Tokens tracking the US dollar haven’t delivered on hopes of transforming finance; the deal promises little current payoff, but at least keeps the dream alive.

High food prices put populism on India’s table

22 Aug 2023

The cost of onions and tomatoes are soaring ahead of state elections, ramping up pressure for government relief measures. Modi’s fiscal prudence has helped tame inflation and supports his appeal to global investors. The latest crisis could push everyone out of their comfort zone.