Sign In

Politics

Europe leaves Italian bullying to markets

18 Jan 2017

The European Commission wants Italy to cut its budget deficit. But the cut looks gentle compared with Brussels' rules, probably because elections are looming and anti-establishment forces gathering. In any case, as ECB bond-buying ends, markets will be less lenient.

GM rolls Trump-friendly buzzword off factory floor

17 Jan 2017

The automaker recently harangued by the president-elect for building cars in Mexico is bragging about "insourcing" 6,500 jobs to America. CEO Mary Barra isn't the first to use the term, but is ahead of the curve as more firms try to curry favor with the next commander-in-chief.

Trump nominee spreads insider-trading disease

17 Jan 2017

Tom Price, who has been tapped to be health and human services secretary, is raising new conflicts-of-interest concerns. He bought shares in Zimmer Biomet and other companies while working on bills affecting them. It reflects badly on him, the president-elect and Congress.

Cox: Quest begins for immaculate M&A conception

17 Jan 2017

Dealmakers, many of them gathering in Davos this week, will be on the hunt for mergers that can keep the boom rolling while satisfying President-elect Donald Trump's obsession with jobs. That means synergies are out and "transformation" is in. Shareholders may pay the price.

Theresa May takes a Brexit big bath

17 Jan 2017

New company bosses often take major writedowns to give themselves a fresh start and flatter future earnings. In saying Britain could walk away from the EU’s single market, the prime minister is on the same page. Investors can now use the clean-break scenario as their base case.

Trump void lets Xi Jinping cosy up to Davos Man

17 Jan 2017

The Chinese president defended trade and international cooperation at the global conflab. Beijing is a highly flawed champion of globalisation. But if America turns inward under its new president, China can play a bigger global role in everything from trade to climate change.

Britain’s Brexit cliff: how big is the drop?

16 Jan 2017

As Theresa May prepares to reveal details of the UK’s post-EU objectives, the risk of a clean break in 2019 has risen. Such an outcome is suboptimal. But Britain’s negotiating position is far from hopeless, and the scale of the pain from “hard Brexit” can be overstated.

Politics could flatter or flatten global growth

16 Jan 2017

Last year the world economy grew at its slowest rate since 2009, the IMF reckons. Stimulus in China and the promise of Donald Trump’s tax cuts mean the next two years should be better. However, increased risks of protectionism make forecasts even more tentative than usual.

Trump may force Germany to do more for Europe

16 Jan 2017

Donald Trump is threatening to slap U.S. import tariffs on German cars. For all the economic pain, this could give the EU a new lease of life. Internal pressure failed to make Berlin spend more or give fiscal concessions to southern Europe. External threats might work better.

Samsung arrest spells trouble for Korea’s chaebol

16 Jan 2017

Prosecutors are seeking an arrest warrant for heir Jay Y. Lee. It could disrupt a long-running succession plan for South Korea's biggest group. By rattling a conglomerate that drives national fortunes, Seoul raises hopes that real corporate reform could come thick and fast.

Trump’s Treasury man is Exhibit A for tax reform

13 Jan 2017

Steve Mnuchin plans to unload over $90 mln of investments to avoid conflicts of interest. Like many rich folks, the hedge-fund boss owns a dizzying array of assets, including art, in a web of trusts and partnerships. At least that means he knows how pervasive the loopholes are.

Market bets Fiat mess is a muddle, not a fiddle

13 Jan 2017

After a rebound in the carmaker's shares, investors are pricing in a $1.8 bln emissions hit. Were Fiat Chrysler's sins to be like VW's, it would be up to $4.2 bln. For now investors seem to be hoping Fiat made a technical slip-up rather than an intentional manipulation.

Trump could shove Iran closer towards China

13 Jan 2017

Secretary of State nominee Rex Tillerson backs a review of Tehran's sanctions deal, echoing harsh words from his president-elect. China has already identified Iran's weak economy as a target for investment. Cementing the trend could chip away at U.S. dominance in the Gulf.

Viewsroom: Trump’s trickle-down ethics failure

12 Jan 2017

The president-elect's attempt to avoid conflicts of interest while in the White House is window dressing that sets a bad example for his administration. Meanwhile, Trump's shadow hangs over the Detroit Auto Show. And his infrastructure plan is not as straightforward as it seems.

Hadas: The new autocratic economics is still fuzzy

12 Jan 2017

Muscular leaders have diverging concerns. Oil-dependent Putin does little to promote Russian growth. China’s Xi puts expansion above financial stability, while Turkey’s Erdogan risks the economy for political strength. The common factor is state control, greased with corruption.

Germany raises bar in fight for equal pay

12 Jan 2017

A new law will force companies to tell female employees how much their male equivalents earn. Companies complain it’s clumsy and costly. But they only have themselves to blame: despite anti-discrimination rules and voluntary pledges, the gender pay gap is still unacceptably wide.

UBI takes slow road to Italian bad debt solution

12 Jan 2017

The lender is raising 400 mln euros to buy the remains of three failed small banks. It’s a good deal, but UBI could have raised more and boosted bad debt reserves, like larger rival UniCredit. A thin buffer places too much faith in Italy’s fragile economy and fraught politics.

Beijing lobs trade grenade into Trump’s court

11 Jan 2017

China is imposing punitive tariffs on imports of a U.S. animal feed just days before the president-elect takes office. Trump has already talked tough about taxing imports from the Middle Kingdom. Retaliation risks escalating into a trade war that neither side would win.

China bullies South Korea at its own risk

12 Jan 2017

Beijing looks to be exacting economic revenge against Seoul over a U.S. military pact. Sectors riding the "Korean wave" in China, like cosmetics and entertainment, are in the crosshairs. But deep manufacturing ties are harder to break. Excessive harshness would backfire on China.