Politics

Foxconn’s U.S. move sends false reshoring signal

27 Jul 2017

The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.

Poland’s new tricks expose EU’s old weakness

25 Jul 2017

Judicial reforms that jeopardized the rule of law were stalled by the president, not European censure. Yet the bloc had little ability to impose sanctions anyway. As when nations flout budget rules, EU membership tests are more strictly enforced before entry than after.

M&A may become the new Democratic whipping boy

24 Jul 2017

After losing the presidency to Trump, the opposition wants tougher antitrust oversight. Deals involving United Airlines, AT&T-Time Warner and Dow-DuPont are in the crosshairs, as are near-monopolies like Facebook. A fight is brewing against the concentration of corporate power.

Saudi oil cut would be a hit-and-hope strategy

24 Jul 2017

The kingdom’s pact with OPEC to damp output is crumbling and has failed to drain inventories, or boost prices, fast enough. One suggestion is to reduce its own exports by as much as a seventh to shock markets into submission. If that fails, though, Saudi would look impotent.

Abe’s weakness puts Japan reform momentum at risk

24 Jul 2017

A period of unusual political stability helped Prime Minister Shinzo Abe shake up the economy. But his approval ratings have crashed. He is more likely to respond with populist spending than doubling down on reform. If that fails to shore up his support, he may be replaced.

White House creates its very own jobs crisis

21 Jul 2017

Press Secretary Sean Spicer quit after the hiring of financier Anthony Scaramucci. Donald Trump also fired his FBI director, undercut his Treasury secretary and regrets his attorney general pick. Just as U.S. employers wrestle with labor participation, so too does the president.

Viewsroom: Why U.S. tax reform is doomed, too

20 Jul 2017

Republicans’ failure to replace Obamacare throws into doubt Washington’s ability to keep other high-profile election promises, not least cutting corporate levies. Meanwhile, President Trump’s fuzzy agenda for reforming NAFTA could give Canada and Mexico more bargaining power.

GOP may get inside help to defang bank watchdog

20 Jul 2017

U.S. Republicans want to nix a key CFPB rule. Champions like Democratic Senator Elizabeth Warren will defend the consumer regulator created by the Dodd-Frank Act. But if Director Richard Cordray runs for Ohio governor, as seems plausible, the agency may soon wither away.

Exchange Podcast: Mauricio Cárdenas

18 Jul 2017

After half a century of strife, FARC guerrillas are laying down their weapons and integrating into Colombia's political landscape. The Exchange traveled to Bogota to discuss potential dividends from peace, infrastructure investment and the economy with Colombia's finance minister.

Third Senate GOP health attempt is most charmless

18 Jul 2017

Having twice failed to pass alternatives to Obamacare, Republicans may try to repeal it with no replacement. Based on a similar 2015 effort an estimated 32 mln Americans would lose insurance cover, some 10 mln more than under the nixed bills. It’s hard to see senators backing it.

Trump fuzziness gives NAFTA mediators wiggle room

17 Jul 2017

The president wants to cut deficits with Mexico and Canada and strengthen rules for products made in North America. But his trade rep is offering few details, while cribbing other ideas from the ditched TPP. Such a vague approach may increase the chance of striking a decent deal.

Mexico and Canada on the lookout for new friends

14 Jul 2017

Donald Trump will soon present demands for a revised trade pact. Uncle Sam's size gives it leverage, but America’s neighbors have been seeking out partners in South America and Europe. This could benefit firms like Adecoagro in Argentina and Germany’s Oetker over U.S. rivals.

Murdoch’s Sky takeover can survive lengthy review

14 Jul 2017

The media mogul won’t offer more concessions to win quick approval for his 11.7 bln pound bid for the UK broadcaster. That will probably trigger an extended probe which investors think makes a deal less likely. But authorities can suggest remedies to clear the way for a deal.

Cox: White House kitchen-sink job going down drain

13 Jul 2017

New CEOs often spend their first months at the helm ejecting all but the proverbial basin: strategy, assets and guidance. Donald Trump is aggressively using the approach to wash out his predecessor's legacy. It's taking too long, though, and impeding chances for fresh policy.

Macron’s choice: Europe or Gallic exceptionalism

13 Jul 2017

The French President and Germany’s Angela Merkel are keen to revamp the euro zone. It’s hard for Macron to be a role model as long as France’s budget deficit is too big – and harder still given the pressure to cut taxes quickly. This fiscal dilemma is the euro zone’s problem.

Lula graft conviction is a sad boon for Brazil

12 Jul 2017

At his popular peak, the ex-president offered a magical moderate leftism that both markets and the poor could love. He hoped to regain power in 2018. Positive investor reaction to his prison sentence shows how dead that dream is. Brazilians face harder, more realistic choices.

Canada treads a fine line in following the Fed

12 Jul 2017

The central bank raised its key interest rate for the first time in nearly seven years, saying growth looked healthy. Inflation remains below target, though, and a housing bubble threatens to deflate. It's hard for Canada not to match tighter U.S. policy, but it carries risks.

Only in Trumpland is Gary Cohn suitable Fed chair

12 Jul 2017

The former Goldmanite and White House adviser is tipped as top contender to replace Janet Yellen. Though not an economist, his years in finance put him ahead of other cabinet picks lacking relevant résumés. But a Wall Street trader's temperament is no match for the staid job.

Companies will have their day in Trump’s courts

10 Jul 2017

The White House travel ban and environmental rollbacks got blocked in court, but there are over 100 judicial vacancies for the famously litigious president to fill. Aging jurists could leave even more open seats. That may reshape upcoming battles in finance, tech and beyond.

Healthy U.S. payrolls hide pain of working-age men

7 Jul 2017

Employers added a robust 222,000 positions in June while the jobless rate stayed low, at 4.4 pct. At the same time, opioid usage and extensive incarceration have kept many males in their prime years out of the workforce. Wiser policy decisions could help bring them back.