Politics

French corporate debt immunity to Le Pen will fade

15 Feb 2017

Even the slim possibility that far-right leader Marine Le Pen might lead France out of the euro zone has pushed up government bond yields. By contrast, corporate debt has suffered relatively little damage. Savvy investors will make this anomaly disappear soon.

Struggling U.S. retailers take aim at border tax plan

15 Feb 2017

CEOs from the likes of Target and Gap are meeting with President Trump to voice concern over proposed border taxes. With store closings and job cuts accelerating, a levy that raises prices for consumers would add to the woes of an industry that's America's largest private-sector employer.

Italian election delay swaps uncertainty for limbo

14 Feb 2017

Matteo Renzi’s centre-left party is holding a leadership contest, making it hard for the former prime minister to call an early election. Though a messy vote is avoided, a prolonged period of temporary government will only add to Italy’s slow growth and anti-establishment mood.

Switzerland shoots itself in foot on tax reform

13 Feb 2017

Voters rejected a government plan to balance low corporate rates with global reforms. That might make sense if international cooperation on tax fails. But the Swiss are mainly hoping to avoid higher personal taxes. If multinationals flee, these will happen anyway.

Hadas: How the liberal economy got lost

13 Feb 2017

As President Trump puts his promises on trade and migration into noxious practice, cowed elites are debating how their ideas failed. The big causes are forgotten history, ideological hubris, bad finance and excessive self-interest. Fixing those flaws is essential to any revival.

North Korea defies Trump’s art of the deal

13 Feb 2017

The U.S. president has softened potential conflicts with Japan and China. Pyongyang, which fired a missile on Sunday, is more troublesome. Unlike its neighbours the hermit state offers little room for common ground on jobs or trade. Trump's business savvy will be of little use.

Trump’s China retreat heralds more rational clash

10 Feb 2017

The U.S. president has backed away from reckless threats by reaffirming the "One China" policy. Fights over trade and currency issues are still in prospect. But the People's Republic – and the world – can take some comfort from Trump's belated embrace of conventional diplomacy.

The $22 bln Trump wall is a bad investment choice

10 Feb 2017

That's the amount a Homeland Security report says the president's promised Mexican border barrier will cost. It would pay for two aircraft carriers or 150 years of the National Endowment for the Arts. Or Trump could fund the Labor Department for a year – and still buy Twitter.

Treasury pick can only stare at (debt) ceiling

10 Feb 2017

As Steve Mnuchin awaits Senate confirmation, the clock is ticking on the $20 trln U.S. borrowing limit. Raising the cap has become a struggle in recent years. It'll be a big first test for the Treasury secretary, especially considering Donald Trump's blasé remarks about default.

Euro risks replacing sterling in FX doghouse

10 Feb 2017

The battered pound has won a reprieve as post-Brexit growth is proving more resilient than investors had anticipated. By contrast, the euro's star is waning before France's unpredictable elections. Options prices signal that the single currency could become traders' next victim.

Viewsroom: Keeping banks in the sin bin

9 Feb 2017

President Trump wants to "do a number" on post-crisis financial reforms, but overturning them will be tough. Paris emerges as the top city for financial types after Brexit. Plus, why a legal brief filed by Google and others against Trump’s immigration ban is such an unusual move.

Wreckage of TPP could help fix NAFTA

9 Feb 2017

Donald Trump wants to renegotiate the 1994 pact with Mexico and Canada, covering over $1 trln of trade. The scrapped trans-Pacific deal included some helpful measures on dairy products and energy. They could be slotted into a revamped NAFTA, boosting the chances of a new deal.

Canadians walk fine line on Trump protectionism

9 Feb 2017

What's good for the U.S. is mostly good for the $2 trln economy to the north: it has been called "California with really bad weather." Unlike Mexico, Canada isn't a low-wage target. Some Trump policies pose risks, though – as does a gulf between the two nations' philosophies.

Investment drought is about more than spreadsheets

9 Feb 2017

Companies’ reluctance to invest is one of the main conundrums facing policymakers. A new Bank of England survey suggests old habits and crisis memories play a bigger role than any shortage of finance. It’s another reminder that loose monetary policy can only achieve so much.

Infineon U-turn is canary in Trumpian coal mine

9 Feb 2017

The German semiconductor group abruptly warned its Wolfspeed deal could be blocked by the U.S., a week after saying all was well. American regulators have tended to get antsy when Chinese deals are involved. A protectionist in the White House implies this could now be broadened.

UK student debt sale is a third-class idea

9 Feb 2017

The government is selling 12 bln pounds of student loans. If wage growth motors, the sale price could wind up looking cheap. Given its reluctance to sell RBS shares that are depressed in value, and the reduced imperative to balance the budget by 2020, it's a needless risk to run.

Nordstrom handed a presidential gift certificate

8 Feb 2017

The higher-end U.S. retailer added some $300 mln in market value after Donald Trump deemed a business decision to discontinue his daughter's clothing line a personal attack. By overstepping his boundaries yet again, the president managed to turn shopping into an act of protest.

GSK CEO leaves successor with scope for encore

8 Feb 2017

Departing chief Andrew Witty's final results beat expectations. He steered the drug giant through scandal and patent losses, but did smart deals, and created value. His vision of a diversified group is still unfinished, though, leaving successor Emma Walmsley plenty to do.

Russian toy IPO lacks a political risk discount

8 Feb 2017

Detsky Mir has priced its sale of new shares close to Lenta’s 2014 debut. Fair enough: it has a dominant position. Still, the conviction of opposition leader Alexei Navalny in defiance of a European court ruling is a reminder that Russia plays to its own rules.

Silicon Valley fights for its life on immigration

7 Feb 2017

Over 100 tech firms, including Google and Apple, have joined the legal battle against President Trump's travel ban. They argue that the restrictions interfere with hiring and business operations. For an industry dependent on immigrants, the case represents a fight for survival.