Politics

South Korea wobbles walking U.S.-China high-wire

20 Sep 2017

Seoul's balancing act between China and America looks untenable. North Korean missiles are flying, yet Beijing is spanking South Korea over a U.S. missile-defence system. Trump, unsympathetic, wants trade concessions. Perhaps it’s time for a regional counterbalance to China.

China “Belt and Road” waves red flag for investors

18 Sep 2017

Beijing’s vision of infrastructure connecting some 70 countries already has fund firms rushing to create vehicles to lure investment. But broad index ETFs miss that many projects make little commercial sense. Skeptical punters should focus on a narrower set of potential winners.

What we’ve learned about Brexit so far

19 Sep 2017

Britain’s divorce from the European Union is reaching the critical stage where talks are meant to shift from principle to detail. Progress is being slowed by bickering, technicalities and economic fog. Despite the risk of Brexit fatigue, five clear lessons stand out.

Breakdown: Colour-coding Germany’s election

18 Sep 2017

GroKo, black-green or Jamaica? Angela Merkel is almost certain to win a fourth term, but the race to be her partner is wide open. The outcome matters for Germany – and for Europe. Breakingviews decodes the colourful jargon, and looks at the consequences of different outcomes.

Fosun beats the odds with revamped Indian deal

18 Sep 2017

The Chinese conglomerate’s drug unit will buy a smaller 74 pct of KKR-backed Gland Pharma for $1.1 bln. That shows Beijing is still open to sensible foreign deals. And despite a recent border spat, India is open to Chinese money, especially if deals are carefully structured.

Trump follows Obama’s lead on Chinese chip deals

14 Sep 2017

The U.S. president blocked a $1.3 bln takeover of Lattice Semiconductor. It’s not a new position: his predecessor was sensitive to Beijing’s ambitions and nixed a similar acquisition. With scrutiny likely to intensify, buyers and sellers can save face by rethinking these mergers.

Cox: Donald Trump is failing America’s gun lobby

13 Sep 2017

The candidate's campaign messaging echoed the National Rifle Association's efforts to sow fear and sell weapons. Trump promised to "come through for" the NRA, which backed him. But a profit warning from Smith & Wesson’s parent and other signs suggest he’s not delivering.

U.S. healthcare for all inches toward mainstream

13 Sep 2017

Though the idea has kicked around for years, Bernie Sanders has been shouting into the Washington wind. Democrats will now give his universal-coverage pitch fresh momentum. It's a pricey plan, but one that warrants fresh consideration given rising costs and Obamacare strife.

EU foreign investment review raises bar for China

13 Sep 2017

Brussels has proposed a pan-European scheme to vet sensitive purchases by other countries. Unlike the U.S., rulings will be non-binding. Even so, the People’s Republic will find it harder to buy up EU infrastructure and technology. It’s another reason for Beijing to open up.

Hadas: EU single economy eases way for separatism

13 Sep 2017

Catalan and Scottish nationalism have bubbled up recently. Besides sentiment, the European Union has played a part. The super-national single market not only provides economic protection, but opens up a new vision of sovereignty. It’s the same idea Brexit fans have rejected.

Campaign for euro zone budget is a distraction

13 Sep 2017

The single currency area needs a way to absorb future economic shocks. But comments from European Commission chief Jean-Claude Juncker show that a common tax-funded budget would be a stretch. Better to tweak fiscal rules, deepen financial reform and beef up Europe’s bailout fund.

Ten years on, UK banks still far from utility-like

13 Sep 2017

A decade after the run on Northern Rock, British lenders are smaller and better capitalised. But earnings remain bumpy and subdued economic growth means they will struggle to lift earnings. An average dividend yield of 4 pct compares poorly to genuinely safe and boring utilities.

Merkel’s past omissions will return to haunt her

12 Sep 2017

Germany’s Chancellor has for 12 years failed to invest enough, prepare for costly climate change goals, or tailor the welfare state to an ageing population. An economic upswing is hiding fault lines but Merkel’s past inactivity will exact a high price in the next downturn.

Climate prediction market may help beat fake news

12 Sep 2017

A hedge fund might take bets on future global CO2 and temperature levels. Difficulties include thin liquidity and market manipulation, and some will object to scientists gambling based on their research. The potential value of a market-based climate measure means it’s worth a go.

JBS takes shareholders on zany rollercoaster ride

11 Sep 2017

The scandal-plagued Brazilian meatpacker raised a much-needed $1 bln by selling a poultry business to Pilgrim’s Pride. That gave investors a bit of a high after the low provided by the unraveling of the controlling family’s corruption plea deal. More stomach-churning lies ahead.

Jamie Dimon could offer Gary Cohn an escape route

7 Sep 2017

Trump has grown cold on his chief economic adviser following his criticism of the president's handling of Charlottesville. A return to Goldman Sachs looks unlikely. But JPMorgan needs a CEO-in-waiting. Breakingviews imagines Cohn’s resignation letter, with Wall Street’s help.

Review: Bank of England’s present echoes in past

8 Sep 2017

The Old Lady has evolved from government lender to modern central bank, but familiar themes recur in David Kynaston’s vivid history. Arguments over independence, monetary policy, bank bailouts and the City of London’s future are as timeworn as the institution itself.

Saudi reform rethink points to Aramco IPO risks

7 Sep 2017

The kingdom may water down plans to overhaul the economy. That could have implications for the partial privatisation of Riyadh’s most prized asset. If much-vaunted reforms can be delayed, so can a problematic sale that is unlikely to deliver the desired $100 bln windfall.

Hurricanes taunt Texas to put money where mouth is

6 Sep 2017

As Irma threatens Florida, the Lone Star State has $180 bln of Harvey damage to pay for. Most will come from the feds even though Texas hates big government. With low taxes, billionaires aplenty and a GDP that dwarfs the cost, minimizing D.C. aid ought to be virtually a state duty.

Brazil’s Temer gets a win as more graft oozes up

6 Sep 2017

Forcing state lender BNDES to cut back soft loans to business will shrink the government's role in the economy and help its ailing finances. New graft allegations against the president’s predecessors show how badly such measures are needed. Sometimes corruption can be his friend.