Society

The Exchange: Laurence Boone

8 Apr 2019

The yellow-vest protests are fizzling out in France, but the inequities that fueled them haven’t gone away. That it takes six generations for the poorest to reach the middle class is a big one. The OECD chief economist discusses this, Brexit, Italy and more with Rob Cox.

Cox: Danish capitalism is alive but not all well

4 Apr 2019

The Nordic economy is a model for U.S. leftists like Bernie Sanders. The White House argued in a much-dissed paper that living standards in the region are lower due to socialism. The reality is otherwise. But as Danske Bank’s woes suggest, there’s no such thing as utopia.

Zuckerberg’s plea for regulation is a siren call

1 Apr 2019

The Facebook founder wants governments to develop more standardized rules for the internet to combat problems from harmful content to data security. The idea has merit. But it also smacks of a way for tech firms to keep profits private while socializing responsibility and costs.

Insurers’ deathly jackpot may yet backfire

15 Mar 2019

A sixth of 2018 operating profit came from UK insurers tweaking their mortality assumptions. Ghoulishly, that’s because customers are dying sooner, meaning lower required pensions payments. The problem for investors is that this handy boost could easily go into reverse.

Algeria’s Arab Spring presents binary risk outcome

15 Mar 2019

Revolution is in the air again in North Africa, leaving Algerians - and Europe - holding their breath. Freed from the clutches of an ailing gerontocrat, the energy producer could become a dynamic economic powerhouse. Or the army and Islamists could restart a brutal civil war.

Cox: A Saturday outing with France’s gilets jaunes

12 Mar 2019

Protesters clad in yellow vests staged a joyful flash mob at Charles de Gaulle to oppose plans to privatise airports. There’s a sense of permanent revolt. But the array of quixotic targets championed by the movement gives President Emmanuel Macron a chance to regain his mojo.

Trump’s dubious defense and deficit budget is DOA

11 Mar 2019

The White House wish list for 2020 tots up to $4.7 trln, with a boost for the military and cuts for most everything else. It also counts on an unlikely 3 pct GDP growth rate to trim red ink over a decade. It’s a statement of position that gives Congress good grounds to ignore it.

Review: Capitalism and democracy are good friends

1 Mar 2019

“Democracy and Prosperity” persuasively argues that markets and shifting electoral balances have worked well together to support economic growth. Its two professor authors don’t think the new “populism” needs to break the pattern. Sadly, that case is much less compelling.

Thruppence: Who wins by sponsoring UK book prize?

29 Jan 2019

Man Group has ended its support for the UK’s prestigious Booker award. The hedge fund decided there were worthier recipients of its 1.6 mln pound annual cheque. Luckily for aspiring authors, Breakingviews columnists have a handy shortlist of those who could step into the breach.

The Exchange: Flint Mayor Karen Weaver

18 Jan 2019

Before its tainted-water scandal hit in 2014, the Michigan city was already infamous for high crime and poverty rates after a prolonged economic slump. Weaver discusses the fallout from the water crisis – and explains how the birthplace of General Motors is undergoing a revival.

Trump’s crisis powers are a Pandora’s box

9 Jan 2019

The U.S. president may yet try to bypass Congress to build a border wall by declaring a national emergency. In theory, similar authority could enable him to close CNN or block Facebook. Such scenarios would be tested in court. But there’s leeway, and only lawmakers can reduce it.

WeWork needs path to profit, not enlightenment

8 Jan 2019

The cash-burning office-share outfit – now “The We Company” – wants to “elevate the world’s consciousness.” SoftBank is investing $2 bln more, some at a notional $47 bln valuation. But that’s far less than mooted. Broadening its ambitions as backers shrink theirs is risky.

Firearms will test the mettle of woke financiers

2 Jan 2019

Wall Street dealt gunmakers a blow in 2018 for their part in facilitating gun violence. Yet the wounds were glancing. Investors like BlackRock aren’t especially suited to social activism. Banks, though, have a bigger bully pulpit, and 2019 will bring more reasons to use it.

Spain policy paralysis sets up dangerous dynamic

21 Dec 2018

Rising support for anti-immigrant Vox makes life harder for Socialist Prime Minister Pedro Sanchez, who was already struggling to pass a budget. That’s bad news for the labour market. Growth is slowing and politicians are unable to enact reforms that might help the unemployed.

Cox: France’s Macron can’t turn 41 fast enough

21 Dec 2018

The tail end of the president’s 40th year proved more eventful than he bargained for. The “gilets jaunes” caught him unawares and hardened the perception of him as an aloof dauphin. Business is still hopeful, but Macron needs more than rich Parisians’ backing to reform France.

Ted Baker is stuck in a bear hug trap

4 Dec 2018

Ray Kelvin’s habit of embracing employees has become a liability for investors. If an internal probe shows he is culpable of more than unwanted coziness, the fashion brand could push its largest shareholder away. Even if he holds on, Ted Baker will grapple with other challenges.

Cox: Why I’m relocating to Paris in the year ahead

4 Dec 2018

Riots on the Champs-Elysées are not the best advertisement for President Emmanuel Macron’s fight against illiberalism at home and abroad. But homegrown protests like those of the “gilets jaunes” come with the territory in the global centre of the resistance – my new home.

French riots present Macron with stiffer test

3 Dec 2018

Previous presidents faced protests like the “yellow vests” who rampaged through Paris. As before, the supposed cause - fuel taxes - masks other grievances. But Emmanuel Macron lacks heavyweight ministers or credible opponents. That makes him a lightning rod for public discontent.

Americans spend faster to die younger

29 Nov 2018

Life expectancy has fallen for the third year in a row. Yet the U.S. lays out far more money than other countries to foil the Grim Reaper – and the amount is rising. The issue isn’t just what’s spent but where. More on basic public health and education would be a good start.

Hadas: How to stop radical CEOs from going rogue

28 Nov 2018

Renault and then Nissan hired Carlos Ghosn to subvert conventions. But the will to transgress is hard to keep within boundaries. Companies have four defences against talented but errant bosses: bureaucracy, conscience, boards and punishments. All of them can be strengthened.