Politics

Viewsroom: How China changed Hong Kong

6 Jul 2017

It’s 20 years since the British handed the island and adjacent territory back to the mainland. Breakingviews’ Asia columnists explain how Hong Kong’s economy and society have changed and ask whether this once-dominant regional financial center can regain some of its lost luster.

White House freed for business conflicts as usual

6 Jul 2017

America's ethics chief is resigning after months of clashes with Donald Trump. Walter Shaub regularly called out the president's corporate holdings and rebuked his deputies for unseemly behavior. Without even official public shaming, U.S. esteem and influence may slip again.

Japan and EU find solace in Trump trade rejection

6 Jul 2017

Last year both were focused on negotiations with the United States. But the U.S. president’s protectionist stance prompted them to revive long-standing talks. Though the “political agreement” is far from complete, it’s a sign that trade liberalisation can still happen.

Blueprint for UK finance free trade has many holes

6 Jul 2017

Brexit need not mean an end to open markets in financial services, chief watchdog Andrew Bailey says. His pragmatic vision would, however, require Britain to accept future EU rules and legal oversight. Even if UK politicians agree, European ones have reasons to dissent.

Beijing spreads tension with Tomorrow selloff

6 Jul 2017

Authorities are compelling Tomorrow Holdings, owned by a missing Chinese billionaire, to sell insurance and banking units, Reuters says. It is not clear if this is about politics, crime or systemic risk. Still, it is a worrying template for other conglomerates also under scrutiny.

Exchange Podcast: Bill Emmott

5 Jul 2017

The system of political and economic openness built after World War Two is under threat, Bill Emmott argues in his new book "The Fate of the West." He joins us to discuss globalization, populism and why there's still cause for optimism about the future of liberal democracies.

Beijing’s reversal on credit scores is ominous

5 Jul 2017

China's central bank no longer wants to let private outfits like Alibaba assess consumer creditworthiness, Reuters says. That’s doubly unwelcome. Borrowers need better credit scoring. And this will concentrate even more power in the state’s Orwellian “social credit” system.

Beijing-Trump relations enter dangerous phase

4 Jul 2017

Chinese and U.S. leaders misread each other. Beijing overinvested in a few relationships, while it ran up the trade surplus and failed to rein in North Korea. Trump's team is now pushing back with sanctions, tariff threats and military moves. The risks of a trade war are rising.

Illinois blowup flags dangers of budget fireworks

3 Jul 2017

As America celebrates July 4, at least six states missed their financial-planning deadlines. New Jersey and Maine even shut down services. A third straight year of political impasse has Illinois racing to avoid a junk credit rating. The spectacle should scare others into action.

Theresa May’s dilemma is Mark Carney’s opportunity

3 Jul 2017

The British Prime Minister is under growing pressure to loosen fiscal policy. Higher wages for public sector workers would worsen the deficit. But boosting growth would give the Bank of England chief more freedom to fight inflation. Necessity may force May to do the right thing.

Overhaul pits taxman against Indian ingenuity

3 Jul 2017

The rollout of a nationwide goods and services levy has been surprisingly smooth. The real prize would be shrinking the informal economy. Yet citizens have circumvented Prime Minister Modi's previous big reforms. That makes it too soon to hail GST a success.

U.S. water doesn’t let Trump dampen the mood

30 Jun 2017

Industry bigwigs in New Orleans extolled an all-in approach to managing H2O, with one exception. They ignored White House plans to curtail clean-water rules to focus on fixing aging systems. Securing the needed $5 trln is urgent, but limiting federal control could be costly too.

U.S. steel war invites needless collateral damage

30 Jun 2017

With overcapacity on the upcoming G20 agenda, the White House is mulling a 20 pct tariff on imports. That'd be risky for the auto and construction industries. A similar 2002 levy under President Bush led to 200,000 job losses. There are smarter ways to address market distortions.

Colombia faces peace paradox as FARC rebels disarm

30 Jun 2017

Ending five decades of civil war will lift the Andean nation's economy in the long run, but place additional burdens on tight government finances in the meantime if peace is to prosper. Encouragingly, murders are down and tourism up, but it could all still go wrong.

Having aced stress test Citi now needs a strategy

29 Jun 2017

The $188 bln U.S. bank doubled its dividend and boosted its share buyback by $15.6 bln after clearing the Fed exam. CEO Mike Corbat has been laser-focused on returning capital and appeasing watchdogs. Spurring growth to match bigger investor payouts is a trickier challenge.

Murdoch’s Sky bid promises lack credibility

29 Jun 2017

Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.

Hong Kong finds Beijing flunking soft-power test

28 Jun 2017

The central government is investing heavily overseas and touting itself as a benign benefactor. But in 20 years it has alienated many Hong Kongers. The bad PR is a blot on China’s image. It suggests Beijing has a lot to learn about winning friends and influencing people.

Breakdown: A graphic portrait of Hong Kong

28 Jun 2017

The city’s fortunes have become ever more entangled with China’s. Breakingviews shows through graphics how the turbulent relationship has shaped the economy and markets, whilst stoking property prices and political tensions.  

Brazil shambles toward zombie rule

27 Jun 2017

President Temer probably can cling to his job despite corruption charges leveled by the country's top prosecutor. His focus on survival, however, is apt to sap life from much-needed efforts at fiscal restraint. Semi-paralysis will be the state of play until 2018 elections.

Politics are a bar to faster AIB selldown

27 Jun 2017

Shares in the Irish bank rose 8 percent after a heavily oversubscribed IPO. The government - still the lender’s majority owner - may be tempted to rethink a self-imposed cap on how fast it can offload its remaining stake. But political wrangles make a speedy exit unlikely.