Politics

Trump officially becomes Indian IT business risk

9 Jun 2017

The $21 bln outsourcer Wipro named the U.S. president high up in a list of risk factors for investors. It's the first strong warning in print, and it hammers home the particular vulnerability of Wipro's industry to Western protectionism – and the shortage of options to counter it.

Snapchat populism is new political battleground

9 Jun 2017

Millennial-friendly Labour leader Jeremy Corbyn hit the party’s highest vote share since 2001. It may be partly an anti-Brexit backlash from a pro-EU age group. Yet what looks like a swerve away from populism may just be the beginning of a new kind of grievance pandering.

Europe risks overindulging in Brexit schadenfreude

9 Jun 2017

The election leaves Brussels without a stable partner in Brexit talks. Yet EU leaders should be pleased that voters did not reward Theresa May’s immigration views, or unite behind a hard exit. Sticking to a tight timeframe and big bill could squander chances of a compromise.

Sterling post-election blues will be slow to lift

9 Jun 2017

A hung parliament has hit the currency hardest of all UK assets. The saving grace is that a brutal exit from the European Union and a second Scottish independence referendum may now be a little less likely. But neither is a good enough reason to stock up on pounds anytime soon.

Weak government may be just what Britain needs

9 Jun 2017

A hung parliament promises months, or years, of political instability. For finance and industry, though, this may mean freedom to carry on without major interventions. The worst manifesto ideas, on migration, Brexit and nationalisation, are likely to end up in the policy dustbin.

Qatar’s weak link in Saudi stand-off: people

9 Jun 2017

The sheikhdom has the money and resources required to withstand a cold war with its neighbours. Its economy depends on foreign expatriates, though, who account for more than three-quarters of the population. Preventing a demographic drain is the best reason to agree to a truce.

Theresa May falls victim to anti-incumbent wave

9 Jun 2017

The Prime Minister’s Conservative Party has lost its majority in Britain’s general election. Even if it hangs on, the gamble of seeking a big mandate has failed. The lack of a clear result shows Britain’s political landscape – and its relationship with the EU – remains fluid.  

Comey callout of Trump lies hurts dealmaking hopes

8 Jun 2017

The former FBI director said the U.S. president lied on several occasions. He also illustrated Trump’s knack for self-sabotage. Markets were cheered that the testimony didn’t produce a knockout blow, but the credibility hit will further hobble the administration’s economic plans.

Macron has chance to make France a better investor

8 Jun 2017

President Emmanuel Macron wants to use some of the shares the state owns to finance an innovation fund. That’s tinkering at the margin. The Republic is too activist a shareholder in some cases, too passive in others. Better to fix clearer goals for a totally revamped portfolio.

Kansas GOP to D.C. GOP: trickle down ain’t coming

7 Jun 2017

Lawmakers scrapped the 2013 tax cuts pushed by the state's governor, who believed they would spur hiring and spending. Instead Kansas got budget deficits and failing schools. Donald Trump also hopes slashing federal taxes will boost growth. Congress may yet disagree.

British election offers business only bad choices

7 Jun 2017

If the Labour party wins on June 8, companies face higher taxes and wage bills. If the ruling Conservatives retain power, expect more meddling and talent shortages. On balance, companies may prefer the incumbents – if only because they are less likely to carry out their promises.

White House economist will find shortage of demand

6 Jun 2017

Kevin Hassett, who is to help President Trump makes sense of U.S. growth, vowed to provide unbiased, scientific analysis. He also said immigrants and free trade would help. For an administration that plays fast and loose with facts, such views may struggle to be heard and heeded.

Qatar crisis points to quick but uncomfortable fix

6 Jun 2017

As Arab states and U.S. President Trump align against the emirate, the chance of leadership change is rising. Another reshuffle within the ruling family might unblock trade and diplomatic links without affecting Qatar’s economic prospects. But the precedent would be alarming.

Viewsroom: The UK goes to the polls

6 Jun 2017

The Brits are about to elect a new government that’ll take the country out of the EU. Brexit, though, has taken a back seat in the campaign to deadly attacks in London and Manchester – and growing concerns about how the new masters of Whitehall will deal with social welfare.

Europe is a fertile petri dish for GDP-linked debt

6 Jun 2017

Linking national debt payments to economic performance could help countries cope with downturns. There are many obstacles. Bad governments might fiddle statistics; good ones may be reluctant to pay a premium for flexibility. Even so, the euro zone is a good place to test the idea.

British voters are sleepwalking to painful Brexit

6 Jun 2017

Prime Minister Theresa May called the election to strengthen her hand in negotiating the country’s departure from the European Union. But the political debate has barely touched on the trade-offs involved. The electorate is ill-prepared for the consequences that may follow.

Qatar quarrel shows limit of its sovereign wealth

6 Jun 2017

The emirate’s $300 bln-plus fund has snapped up landmark buildings and stakes in companies like Barclays and Rosneft. The spree was meant to generate returns and diplomatic clout. But Qatar’s largesse has produced few allies to help it face down its more powerful neighbours.

UK cyberspace crackdown faces reality checks

5 Jun 2017

Prime Minister Theresa May pledged new curbs on extremist propaganda and communications via YouTube, WhatsApp and the like following attacks in London and Manchester. Such promises can be good politics, but to actually happen they must make technological and economic sense.

New Irish leader is more like Renzi than Macron

5 Jun 2017

Leo Varadkar will be Ireland’s youngest prime minister, prompting comparisons with France’s Emmanuel Macron. Parallels with Italy’s former PM Matteo Renzi are more apt. His government is weak, and he could be at odds with Europe on Ireland’s chief challenges of Brexit and taxes.

Attacks on UK add tension to “strong and stable”

5 Jun 2017

Murders by militants in London and Manchester come at a time when Britain is already badly split on economic, geographic and demographic lines. Such atrocities show why Prime Minister Theresa May’s pledge of firmer government resonates, but also why it will be so hard to deliver.