Politics

Argentina gives Macri a narrow vote of confidence

14 Aug 2017

The president’s nemesis and predecessor Cristina Fernandez did not fare as well as expected in Sunday’s primary election. The peso’s strength in response shows the markets back Macri’s reforms. But Fernandez’s tally is a reminder the economic recovery is not reaching the poorest.

U.S. CEOs can afford principled stand against Trump

14 Aug 2017

Merck boss Ken Frazier quit a White House council to protest the president’s dismal response to Charlottesville. National duty, ego and fear of a Twitter rebuke may have kept CEOs in their seats. But with little to show for staying, resigning would limit further political taint.

Japan’s growth spurt points to household revival

14 Aug 2017

GDP leapt by 4 percent, annualised, last quarter. The data is volatile and often revised. Still the unbroken run of expansion, now 18 months long, is good news. So is rising household consumption, as Japan tries to create a virtuous circle of higher wages, spending and inflation.

Financial flirtation complicates China-India spat

14 Aug 2017

A tussle over territory between the Asian nations is more consequential given deepening economic ties. Beijing wants access to the Indian consumer; New Delhi cannot be picky about foreign capital. The mutual financial embrace is a new reason for both sides to keep the peace.

Petrobras takes the drama out of its crisis

11 Aug 2017

The state-controlled oil company has often resembled a character in one of Brazil's more lurid telenovelas: blessed with great potential, but profligate and easily corrupted. Second-quarter results, though, tell a dull but encouraging tale of rehab under CEO Pedro Parente.

Union throws wrench in self-driving works

11 Aug 2017

The Teamsters have convinced U.S. lawmakers to exempt trucks from a bill allowing more autonomous vehicles on the roads. Granted, 3.5 mln jobs are at stake. But as Tesla joins Daimler and others in the big-rig tech race, it’d be smarter to prepare haulers for a career shift.

Viewsroom: Diplomatically challenged Trump

10 Aug 2017

The U.S. president needs Beijing’s help with North Korea even more after his recent warmongering outburst. Yet his administration just slapped petty import tariffs on Chinese aluminum. Also: what a Google engineer’s sexist memo says about the firm, Silicon Valley and society.

Hadas: Japan humbles the economists

10 Aug 2017

The country has been invalidating accepted wisdom about growth, business and finance for centuries. Its inability to push up inflation is the latest example. Some theories are valid even in Japan. Still, economists would do better if they had fewer universal rules.

U.S.-China trade spat imperils N. Korea diplomacy

9 Aug 2017

The White House needs Beijing’s help more than ever as Trump and Kim Jong Un swap warmongering threats. Yet the administration just imposed import duties on Chinese aluminum-foil makers. That’s petty at the best of times. Right now, any trade dispute is a dangerous distraction.

Exchange Podcast: Art Laffer

8 Aug 2017

U.S. Republicans are pursuing the holy grail of Washington policy: tax reform. The last comprehensive overhaul was in 1986 under Ronald Reagan. The Exchange met with Reagan adviser Art Laffer, known as the father of supply-side economics, to discuss the prospects for reform today.

Viewsroom: Venezuela’s downward spiral

3 Aug 2017

Questionable elections for a rubber-stamping new assembly may give President Nicolas Maduro more power. But the country’s people, economy - and some U.S. companies - will suffer. Also: Sprint, under a ton of debt yet overvalued, weighs up its M&A options.

Brazil’s Congress discounts cost of corruption

3 Aug 2017

Lawmakers voted to shield President Michel Temer from criminal trial, at least for now. The calculus set immediate economic interests, which should benefit from the decision, against the longer-term merits of tackling political graft. Call it the net present value of shame.

U.S. tax-cut hopes may give pensions a rare boost

2 Aug 2017

International Paper is borrowing to stoke its retirement fund. Rising plan costs and a desire to lock in tax benefits before any reduction in rates prompted the move. With other firms likely to follow, this is one way Trump’s fiscal policies can trickle down to the little guy.

Corporate America faces little guy in tax reform

1 Aug 2017

The White House is pitching an overhaul of the tax code. Republican leaders highlight company rate cuts while rank-and-file lawmakers are prioritizing middle-class relief. Congress is also toiling over how to pay for the revamp. Corporations may have to temper their wish lists.

Firing Mooch solves sliver of White House problem

31 Jul 2017

New Chief of Staff John Kelly ousted financier Anthony Scaramucci as communications supremo. It’s a good first step in reining in the chaotic U.S. presidency. But the bigger task for the retired general is disciplining America’s CEO, Donald Trump. That battle may not be winnable.

Brazil pork mongers find comfort in flip-flops

31 Jul 2017

Selling trendy sandal maker Alpargatas to wealthy banking families will help meatpacking-to-pulp firm J&F pay a huge fine for bribing politicians. The original purchase, from a company also embroiled in scandal, is being probed by authorities too. It's a Brazilian microcosm.

U.S. sanctions on Venezuela a double-edged sword

31 Jul 2017

Washington is weighing fresh trade retaliation after Venezuela’s constitutional vote. New measures may embolden opposition to President Nicolas Maduro, including from the military. There’s hope for Venezuelans, but U.S. companies like Phillips 66 and Chevron will share the costs.

Apple sets course for China policy minefield

31 Jul 2017

The U.S. tech giant has minted money in China for years thanks to the iPhone. But slowing sales are forcing it to turn to cloud and payment services. This puts Apple squarely in the sights of the hostile regulators and local rivals that helped drive off Facebook and Uber.

Repeal’s death gives new life to healthcare rally

28 Jul 2017

Republicans’ inability to repeal Obamacare offers a reprieve to the healthcare sector. Insurers, drug firms and hospitals have benefited greatly from the ACA, and it remains on the books. Political hostility may yet destabilize exchanges, but profits continue to roll in.

Cox: Colombia’s peace dividend won’t come easy

27 Jul 2017

The end of a long war against leftist guerrillas should allow Latin America's fourth-biggest economy to attract investment, better allocate capital and grow faster. A trip into rural Colombia reveals how infrastructure neglected for 50 years complicates the challenge ahead.