Politics

U.S. Senate healthcare bill lacks “heart” to pass

26 Jun 2017

Donald Trump wanted a less "mean" rollback of Obamacare. Yet the Senate spared only 1 mln of 23 mln set to lose health cover under the House plan, by Congressional Budget Office figures. The White House is undermining the CBO, but even a Republican-only deal will need surgery.

Silicon Valley reinvents avoidable sexism scandals

26 Jun 2017

Binary Capital is imploding amid claims of predatory behavior. Uber is belatedly tackling similar issues. Venture-capital doyen Reid Hoffman wants an industry “decency pledge.” That's fine, but the tech world could have learned long ago from experience, including on Wall Street.

Brexit assurances give EU citizens scant comfort

26 Jun 2017

The government has told Europeans they will not be forced to leave the United Kingdom. That’s welcome. But many grey areas will depend on the judgement of overworked bureaucrats. Worse still, any pledges could be rendered invalid if Britain crashes out of the EU without a deal.

Merkel’s best economic policy belongs to her rival

26 Jun 2017

The German Chancellor has a record of swiping others’ ideas. She could usefully repeat the trick with the Social Democrats’ Martin Schulz. His pledge to invest more and cut taxes for those on low incomes is better than anything her centre-right party has come up with so far.

U.S. debt ceiling’s only value is as a warning light

23 Jun 2017

The Treasury wants lawmakers to raise the $20 trln cap on federal borrowing or risk a default. The 100-year-old idea of the limit is no longer practical, especially when Congress won't link it with budgeted outlays. Still, the ceiling is a symbol of America's growing debt burden.

Brexit one year on: an alternative history

23 Jun 2017

It has been a year since Britain voted narrowly to remain in the EU, a (fake) bank CEO writes in a memo to staff. Few expected uncertainty would linger so long after the referendum. Austerity and populism point to challenges in the UK. Thankfully, the euro zone looks attractive.

Oil markets too calm over Qatar ultimatum

23 Jun 2017

Doha’s Gulf neighbours have imposed a 10-day deadline to comply with demands including reparations, closing Al Jazeera and regular inspections. Markets have assumed the standoff won’t turn violent and impact oil supply from the region. That assumption is looking less secure.

Italy’s broadband farce risks state overreach

23 Jun 2017

Ministers are threatening to punish Telecom Italia for building broadband in poor areas. The snag is that it is competing with government-linked rival Enel. Telecom Italia’s French ownership also adds complexity. Whatever the motive, attacking private investment is a risky move.

Cox: Milan is dark horse in post-Brexit bank race

22 Jun 2017

The city that taught London about lending lags Paris and Frankfurt in pitching its appeal as a financial center. Fashionable lateness is a Lombard charm. So are fine universities, clever financiers, tax incentives, a strong work ethic – and easy access to beaches and mountains.

China web giants stuck with telco reform bill

22 Jun 2017

Alibaba and Tencent will join a group investing $10 bln in struggling China Unicom, Reuters reported. It’s part of Beijing's plan to increase private investment in state-owned firms. Unicom is the clear beneficiary of the boost. How the internet giants will profit is unclear.

Saudi Aramco IPO is exercise in reverse valuation

22 Jun 2017

The oil producer is worth $2 trillion, say its owners. The question might not be whether that valuation is right, but what Aramco’s owners and bankers will have to do to get it. A Breakingviews calculator suggests this will be a stretch of reason.

Theresa May’s plan still has hard Brexit core

21 Jun 2017

The quest for a parliamentary majority has forced Britain’s prime minister to curb her ambition. Planned reforms to pensions, schools and company pay have been shoved aside. Support for her Brexit-heavy agenda is uncertain, though. The government’s future remains in the balance.

Guest view: U.S. economy needs robust immigration

21 Jun 2017

Labor shortages and weak consumption reflect an aging population, argue Daniel Vajdich of risk consultancy Yorktown Solutions and investor Michael Trachtenberg of Union Place Partners. Japan's experience, they say, is precisely why U.S. lawmakers should embrace foreigners.

As Saudi’s new crown prince rises, so could oil

21 Jun 2017

Mohammed bin Salman has replaced his cousin as heir. That gives him a firmer hand to push through economic reform, but maybe less incentive to do so. Where he is likely to make a bigger mark is in squabbles with Gulf neighbours and taking firmer action over a low oil price.

Trump’s CEOs do more listening than influencing

20 Jun 2017

The U.S. president’s hobnobbing with corporate chiefs is largely a one-way street. Executives can claim some impact on China policy but not yet on immigration, and they got stiffed on climate. The White House forums are still useful for their insight into administration thinking.

Exchange Podcast: James Ledbetter

20 Jun 2017

During the 2016 campaign, Donald Trump suggested the United States revisit the gold standard. So did his rivals Ted Cruz, Rand Paul and Ben Carson. Why are Americans so obsessed with the precious metal, both as a store of value and an investment? James Ledbetter swings by Times Square to discuss his new book, "One Nation Under Gold."

Public housing pressure builds for next HK leader

20 Jun 2017

The city's real estate bubble, buoyed by low rates, limited supply and mainland money, is stoking social unrest. House prices are out of reach for most; rents are punitive. Like prior leaders, Carrie Lam promises more affordable housing. It's better policy that's in short supply.

Macron has the levers to transform French economy

18 Jun 2017

The Gallic president’s talent for upending politics is beyond doubt after his party won a huge parliamentary majority. He now has a free hand to pass labour and tax reforms. His legacy hinges on whether he can lay the foundations for future prosperity without jeopardising growth.

U.S. Russia punch lands presidential double whammy

16 Jun 2017

Senators overwhelmingly backed sanctions on the old enemy as payback for the Kremlin’s election meddling. They also limited the White House’s ability to roll them back. That could leave Putin with a stalling economy and suggests Trump faces a harder time pushing his agenda.

Kohl will be outlived by his German euro-vision

16 Jun 2017

The former chancellor, dead at 87, was one of Europe's pre-eminent postwar leaders. He was an architect of his country's reunification and Europe’s common currency. Kohl also gave Angela Merkel, then an unknown East German chemist, her big political break. His work will endure.