Money‚ Politics

Big oil lawsuits are riskier than quitting tobacco

18 Sep 2023

California is suing fossil-fuel companies, alleging tens of billions in climate-related damages. Decades of litigation forced tobacco firms to pay up. The tension is that, while global warming’s ravages imply higher costs, US oil production is crucial amid tightening supply.

Deaths haunt Corporate America via labor strikes

15 Sep 2023

Auto workers, pilots, and truck drivers have had upper hands in labor strikes. That’s despite labor supply healing. One reason may be that men have left the workforce. Opioids and Covid are partly to blame. But it highlights the dangers of demographically concentrated jobs.

Flood insurance swamps US government

11 Sep 2023

A federal scheme to back policies for water-logged homes is set to be renewed. Failing to do that would worsen a housing shortage. But the program is already laden with debt. Fixes like flood-prevention infrastructure can lower costs for the government and homebuyers alike.

Republican hopefuls’ deficit goals are all talk

24 Aug 2023

Conservatives vying for the Republican nomination vowed to slash the deficit in a debate. After years of spending under conservative leadership, it’s a throwback. Yet tax cuts and other costly projects are still key talking points. Worsened US finances make the agenda impossible.

DeSantis chose wrong Disney battle, right war

22 Aug 2023

Homing in on the $157 billion entertainment company was politically foolish. But the Florida governor is right that Disney's sweetheart deal doesn't make sense. Other similar arrangements are finite and fairer, and still end up bad for states' finances.

Next job-market challenge: the Great Unresignation

4 Aug 2023

Recent labor shortages pushed up hiring costs for US companies. But firms including Wells Fargo and State Street now say fewer staff quit than they expected, so they’re having to give them a push. It’s the kind of wrinkle that makes seemingly healthy jobs data harder to read.

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.

Singapore’s clean reputation gets a timely test

18 Jul 2023

Officials arrested a cabinet minister and a prominent hotel tycoon without saying why. Corruption cases are rare in Singapore. But as the hub becomes a favourite destination for the rich, the investigation is a useful opportunity to burnish its reputation for tough enforcement.

Disney Vegas would have a nice ring to it

7 Jul 2023

The $162 bln media company’s boss Bob Iger is feuding with Florida's governor despite having committed $17 bln investment to the state. Disney could send a message by taking portions of that to Sin City, which is becoming family-friendly and may welcome the income boost.

Weaker China offers opportunities to US and allies

3 Jul 2023

The mutiny against Russia’s Vladimir Putin is a blow for Beijing, while the Chinese economy is weak. The People’s Republic is still a threat, notably to Taiwan. But the US and its partners should grab any chance to work with China on issues like climate change, says Hugo Dixon.

China’s world banks are geopolitical victims

15 Jun 2023

Canada suspended activity at the AIIB after a senior employee claimed it has become an instrument of the Chinese Communist Party. The Beijing-based infrastructure lender tried to play by global rules, but multilateral funding models are struggling to evade diplomatic tensions.

How Modi can grab India’s geopolitical “moment”

3 Apr 2023

India has a big opportunity not least because the US wants to build up the country as a counter to China. The prime minister can make the most of the chance if he moves closer to the West, addresses alleged human rights issues and is more open to trade, says Hugo Dixon.

Powell is leader of the free world – for now

28 Mar 2023

The Federal Reserve chair has ever-larger powers and responsibilities. If he raises rates, he could spark a banking crisis and complicate Joe Biden’s re-election bid. If he lets up, prices will stay high. Powell may stay the course, but Biden isn’t going to like it.

South Africa growth is derailed, Ramageddon or not

5 Dec 2022

President Cyril Ramaphosa is under pressure to resign over a graft scandal. The country’s strong finances and small exposure to foreign investors will prevent a full-blown crisis. But his economic reforms are over, whether he stays or goes.

Delusions of grandeur are root of Britain’s chaos

21 Oct 2022

“Trussonomics” followed hot on the heels of Brexit. Both are symptoms of a country that hasn’t fully come to terms with the loss of its empire, says Hugo Dixon. If the UK now realises it can’t defy the laws of economics and geopolitics, it may emerge wiser albeit weaker.

Brain drain solution is staring Hong Kong in face

19 Oct 2022

Leader John Lee hopes lower property taxes and a new visa scheme will persuade foreign talent not to move to destinations like Singapore. But it’s piecemeal stuff and ignores what’s easily the biggest cause of foreigners fleeing: the city’s increasingly nonsensical Covid policy.

China GDP delay amplifies economic distress signal

18 Oct 2022

Beijing postponed releasing its most-watched quarterly data at the 11th hour amid a Party Congress already putting politics above all else. It was unnecessary: investors have probably priced in slowing growth. And the lack of communication does more harm than ugly numbers.

Capital Calls: Italy’s next finance minister

14 Oct 2022

Concise views on global finance: Rightist leader Giorgia Meloni is likely to pick a pro-European politician as finance chief.

China’s growth path will be felt around the world

14 Oct 2022

The IMF expects the world’s second-largest economy to expand by 4.4% in 2023. That’s 30% of global growth – over three times what the U.S. will contribute. President Xi Jinping’s economic decisions after this month’s political confab will reverberate beyond Chinese borders.

Trussonomics lights slow-burning Aussie fuse

14 Oct 2022

The disastrous UK mini-budget has sparked a debate Down Under about income tax cuts due in 2024. Prime Minister Anthony Albanese risks a political backlash if he pulls a U-turn, and the treasury does have some wiggle room. But pressure to change course will be hard to extinguish.