Politics

Fischer gives Trump freer rein over U.S. economy

6 Sep 2017

With the vice chairman leaving early and Chair Yellen’s term ending soon, the president can remake the Federal Reserve. His nominees will potentially make up a majority of Fed governors. That’s likely to speed the shift to a more conservative, less interventionist central bank.

Uzbek currency is experiment in controlled chaos

6 Sep 2017

The central Asian country has slashed the value of its currency by half. Such moves can hurt consumers and banks and trigger runaway inflation, but Tashkent has levers to limit the risks. While tough tests lie ahead, this is likely to be an example of virtuous devaluation.

Bell Pottinger falls victim to PR disruption

5 Sep 2017

The UK public relations firm is in meltdown after a divisive South African campaign. The rise of online media makes it harder to justify big fees and spurs forays into far-flung markets. The result in this case is a warning to an industry that has so far shrugged off media woes.

Macron may be French unions’ new best friend

5 Sep 2017

The French president’s labour reforms will give firms more scope to bargain directly with their workers, rather than submit to industry-wide agreements. That will fan demand for training in employment law. The odd side-effect could be increased trade union membership.

5-Star’s softer stance on euro is clever tactic

4 Sep 2017

The radical Italian party sees a referendum on euro membership as a last resort, one of its top lawmakers says. The apparent U-turn could help soothe markets and business before upcoming elections. There’s room to backtrack, but 5-Star is holding up and getting more nuanced.

Dream of U.S. job surge is partly in Trump’s hands

1 Sep 2017

Although August’s 156,000 new positions fell short of forecasts, the trend is steady. Yet the president may soon subject nearly 800,000 children of illegal immigrants to deportation. Some 30,000 could lose jobs each month; GDP would suffer too. That’s an avoidable hit to growth.

Congress will point way to China’s future

1 Sep 2017

An October date has been set for the biggest event in China’s political calendar: the twice-a-decade party congress. A reshuffle of the Communist Party’s top ranks will show how determined President Xi Jinping is to consolidate power – and hint at how long he plans to stay on.

Pyongyang turns yen into a very strange safe haven

1 Sep 2017

As Kim Jong-un’s missiles fly and Donald Trump threatens to respond, investors are taking cover in the yen. Odd choice, given Japan’s economic challenges and its awkward proximity to the action. That shows a lack of options among traders and complacency about escalating risks.

Trump may unite Congress – against him

31 Aug 2017

The U.S. runs out of money in a month and the president is attacking lawmakers in his own party. That could prompt Republicans and Democrats to work together to keep the lights on. Plus: Rupert Murdoch could be overpaying for Sky.

Macron’s labour reforms are a gutsy start

31 Aug 2017

Changes such as greater bargaining freedom for employers will make the economy a bit more dynamic. The symbolism is as important. Introducing a highly unpopular cap on unfair dismissal payouts shows President Emmanuel Macron is willing to reform at the expense of poll ratings.

Silicon Valley takes the slow lane to Washington

30 Aug 2017

The likes of Facebook and Amazon are desperately playing catch-up in the policy-shaping game. AT&T, Comcast and other internet providers have spent more than $100 mln lobbying over the last 18 months. It may give them an edge in the nasty battles over net neutrality and privacy.

U.S. tax reform plan can contain hidden loopholes

30 Aug 2017

The GOP no longer wants to tax worldwide corporate profits, which pushes companies to move overseas. It’s a good idea but may create other ways to dodge Uncle Sam. Accounting for assets like patents would help ensure firms, especially in tech, don’t game their government bills.

German car industry may become Merkel’s nemesis

30 Aug 2017

Re-election in September will lumber Chancellor Angela Merkel with the challenge of managing a crisis that is looming in the auto sector. The fight for clean air in cities could accelerate the shift to electric vehicles and jeopardise up to a tenth of Germany’s industrial jobs.

Harvey exposes flaws in U.S. energy-dominance plan

28 Aug 2017

Trump aims to boost American fuel exports by fostering coal and oil drilling. But the deluge in Texas has disrupted 16 percent of the nation’s refining capacity. Tackling climate change and hardening energy infrastructure should take priority over the president’s pet projects.

Water woes may leave green-car hopes high and dry

28 Aug 2017

Ford is the latest to ramp up electric-vehicle production with a deal in China. But the industry relies heavily on the Democratic Republic of Congo for a crucial battery material. Drought, abysmal infrastructure and conflict could put ever-increasing supply needs at risk.

Yellen sets out her stall for Trump

25 Aug 2017

In what may be her last Jackson Hole set piece, the Fed chair defended tighter regulation since the crisis 10 years ago and called for continued U.S. leadership in global forums. The president wants to unwind the reforms. It's a factor as he considers whether to reappoint Yellen.

Samsung guilty verdict is a victory for reformers

25 Aug 2017

The de facto leader of South Korea's biggest business faces five years in jail after an historic corruption trial. Assuming the sentence is not overturned, this boosts President Moon, who vowed to rein in powerful conglomerates. It should scare other bosses into behaving better.

How the Bank of Japan can keep the money flowing

25 Aug 2017

The disappearance of inflation is the big debate for central bankers in Jackson Hole this weekend. That puts Japan in an uncomfortable spotlight. The BOJ is running short of government bonds to buy - but could do more by becoming more creative in its asset purchases.

Central bank confab may be calm before the storm

24 Aug 2017

With the U.S. and global economies in good shape, Yellen can enjoy what may be her last show in Jackson Hole. But fiscal fights in Congress, Fed bond sales and doubts about her future loom. The ECB nears its own taper even as low inflation confounds. Gray clouds are moving in.

Trump antics may be virus, cure for uneasy market

23 Aug 2017

The president threatened a government shutdown over border-wall funds as the risk of a U.S. debt default looms weeks away. Trump is angering the lawmakers he needs on the issues. Ironically, his divisiveness could actually unite the middle to resolve these economic hurdles.