Money‚ Politics

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.

What to expect from China’s Party Congress

6 Oct 2022

This month’s quinquennial meeting will shed some light on President Xi Jinping’s policy priorities amid a slowing economy and Covid lockdowns. In this Viewsroom podcast, Breakingviews columnists offer pointers on what to watch for from this staged but critical political event.

China biotech has bitter U.S. pill to swallow

14 Sep 2022

Top contract drugmaker, WuXi Biologics, lost $7 bln in market value after U.S. President Biden vowed to cut dependence on foreign manufacturers. Building up domestic capacity will take years, so the selloff looks premature. Still, some form of decoupling is underway.

Jack Ma’s exit would smooth Ant’s IPO march

29 Jul 2022

The Alibaba founder may cede control of the fintech giant. This could mark a big advance in Ant's efforts to clean up governance and placate the officials who derailed its $37 bln float in 2020. A simpler ownership structure puts the company one step closer to a revived listing.

Health adds new letter to ESG for food groups

12 Jul 2022

Government crackdowns on junk food marketing will hurt sales for companies like Frosties maker Kellogg. And investors are increasingly pushing consumer groups to use independent criteria to show how healthy their grub is. Tougher scrutiny will mean a valuation slap for laggards.