Money‚ Politics

India’s open for business push has local quirks

20 Sep 2024

Prime Minister Narendra Modi’s government lowered barriers to foreign investment. Yet BlackRock, BMW and others are choosing to expand in partnership with powerful families. It tightens tycoons’ grip on the world’s fifth-largest economy, and sets them up as future global rivals.

Kamala Harris’ welcome housing boost is overdue

21 Aug 2024

The presidential candidate plans to cut red tape as part of a $40 bln construction blitz. It’s a nod to the supply-muting and price-stoking effects of regulation. The shift can stem shortages from Washington to Wisconsin – as long as it doesn’t kill homeowners’ golden goose.

Dueling US tax ideas miss $4 trln elephant in room

15 Aug 2024

Both leading presidential campaigns have floated exemptions for tip income and higher credits for parents. Donald Trump also wants to move Social Security checks out of Uncle Sam’s reach. Such populist pitches pale next to expiring 2017 cuts, which will anchor the policy debate.

Elon Musk’s bully pulpit is coming into focus

13 Aug 2024

The Tesla boss’ two-hour online chat with Republican candidate Donald Trump was a mess. Yet it shows how his web of infrastructure-like businesses, from rockets to energy storage, hold growing sway in the political arena. The result may be a less-than-virtuous cycle.

US election crimps fixes for energy, weed and more

6 Aug 2024

Presidential contests can bury unglamorous issues in dire need of attention. Take power lines: legislation awaits to help the huge queue of energy projects, equal to more than doubling US capacity, hook up to the grid. Despite broad agreement, the election cycle stymies progress.

Bangladesh becomes global firms’ next big unknown

6 Aug 2024

Protests may ease now Prime Minister Sheikh Hasina has fled. But her ouster after 15 years of iron-fist rule leaves the economically struggling country of 170 mln vulnerable. Companies like H&M and Inditex that depend on it for garment-making face an anxious time ahead.

Corporate America revels in Supreme Court windfall

23 Jul 2024

The most influential set of business-related rulings in decades augurs sweeping US deregulation. One case alone may save the medical testing industry some $30 bln, as companies race to challenge many longstanding rules. Receptive judges would help pay dividends for years.

Dollar-cost averaging is Democrat donor watchword

22 Jul 2024

US President Joe Biden’s backers were like owners of a sinking stock, stuck in a flailing investment aided little by more cash. His exit and nod to Vice President Kamala Harris drew $50 mln of new money. Spending now offers a reset and the lure of influence in a renewed campaign.

Joe Biden displays power and risks of incumbency

21 Jul 2024

The US president will not run for re-election, a momentous decision that may have come too late to mitigate damage to his party. Unlike corporate leaders, a sitting commander-in-chief is almost impossible to dislodge. Biden’s replacement will face Donald Trump without that grip.

Silicon Valley daredevils ride or die with Trump

17 Jul 2024

Marc Andreessen, Elon Musk and other tech entrepreneurs are lining up behind the former US president. Maybe there’s ideological alignment, but naked self-interest and contrarian biases probably play a part, too. The downside in politics, however, is far bigger than in business.

Trump VP pick plays on a message of decline

15 Jul 2024

The Republican candidate's new running mate JD Vance solidifies an agenda of trade and immigration restrictions pitched to struggling workers. Vance’s story of upward mobility appeals to the blueprint, and a grim truth: for working-age men, it’s harder to climb the ladder.

Wall Street places reluctant bet on Trump

11 Jul 2024

Financial folk prefer Republicans over Democrats when it comes to political donations. They dislike President Joe Biden’s regulatory drive. But Donald Trump’s return could roil markets, widen divisions and expand deficits. No wonder some would prefer one of their own in the race.

China’s Third Plenum will jolt the economy, again

28 Jun 2024

Xi Jinping has a chance to lay out his answer to major issues including weak consumption at July’s five-yearly huddle of top officials. Previous meetings set the tone for the country. This one is much delayed and will determine China’s interest in making itself “investible”.

China has an incentive to keep road to Europe open

26 Jun 2024

Beijing agreed to start talks with the EU on the bloc's planned tariffs on China-made EVs. Carmakers can survive but the issue represents a larger threat. It would hurt the $18 trln economy to add a full blown trade war with the EU to its escalating one with the United States.

China can divide-and-trade a less welcoming Europe

13 Jun 2024

EU tariffs on cars are a setback for Beijing. Yet President Xi Jinping will test the bloc’s ability to form a coherent policy against the world’s second largest economy. Hungary is benefiting from rising Chinese investments and trade and will become a key battleground.

India’s inequality deserves a bigger risk premium

12 Jun 2024

Prime Minister Narendra Modi suffered his biggest electoral blow in one of the nation’s poorest states. By one measure, the gap between haves and have-nots is wider than during British rule. Closing it is tricky. Without change, though, stability will hang by a thread.

India breezes through its first continuity test

11 Jun 2024

Leader Narendra Modi began his third term by keeping nearly all his top ministers, defying speculation he'd cede key posts to allies. The resilience of markets following the shock election result underscores stability too. The costs of coalition rule, if any, may show up later.

Donald Trump verdict judged leniently by investors

31 May 2024

The former US president joins Italy’s Berlusconi and other politicians in the criminal hall of shame. He also may yet be re-elected, but there’s no extra risk being imputed to the country’s debt, currency or markets. However robust the system, sanctioned wrongdoing will erode it.

Trump’s rich backers normalize criminal behavior

30 May 2024

In a historic verdict, the property mogul became the first US president convicted in court. His outlandish behavior hasn’t cost him support from billionaires such as Blackstone’s Steve Schwarzman, whose money may help Trump get re-elected. Their collective greed is now on trial.

A weaker Modi may not be too bad for India

23 May 2024

Business leaders were betting on a thumping win for the premier's party in the ongoing election and policy stability for five more years. Market volatility suggests some uncertainty. If the BJP cedes seats, India's growth may lose some momentum but there are potential gains too.