Trade

American shipping law doesn’t sail

27 Jun 2022

A U.S. act passed in 1920 requires ships traveling between U.S. ports to be American made and operated. But that has doubled the cost of transporting gas from Houston to New York, among other things. Eliminating the old rule would ease pressures on shortages – and rising prices.

Biden meddling ups ante on protectionism

17 Jun 2022

Tariffs, including ones imposed by predecessor Donald Trump, have now created big U.S. bottlenecks. To fix the problem, including to boost production of solar panels, Biden is invoking a 1950s law meant for national emergencies. Two government overreaches don’t make a right.

How sanctions against Russia could backfire

26 May 2022

The threat of financial punishment did not prevent President Vladimir Putin from invading Ukraine. History shows that economic penalties can stoke conflict by pushing countries to be more self-sufficient, Edward Chancellor writes. Investors risk being stuck with stranded assets.

European banks mount fragile trading fightback

5 May 2022

The markets divisions of Deutsche Bank, BNP and Barclays are outpacing U.S. rivals, reversing a decade of plunging market share. Yet sustaining that growth will be hard, and shareholders clearly dislike the business. It may be a blip on a long-term trend of American dominance.

Dollar is worst reserve choice except for the rest

27 Apr 2022

Sanctions on Russia raise questions about the U.S. currency's reliability for foreign governments. But options like the euro are also tied to restrictions. And the Chinese yuan lacks convertibility, rule of law and safe-haven appeal. Reports of the dollar's demise are premature.

Capital Calls: Maersk rides freight-rate M&A wave

26 Apr 2022

Concise views on global finance: The Danish shipping giant’s $19 bln of forecast free cash flow provides massive firepower for deals.

Russia risk is ghost of banks’ sanctions future

22 Apr 2022

In the hunt for oligarchs and blacklisted firms, U.S. authorities are treating lenders as allies rather than adversaries. Prospective prosecutors may take a different view. Banks with past legal troubles might prefer to shun Russian business. Still, there are lots of grey areas.

India’s Russian oil binge carries hidden costs

14 Apr 2022

New Delhi is filling its boots with Moscow’s cheap crude, just as Europe and traders like Vitol start to turn away. The aggressive ramp-up carries longer-term risks. As a keen buyer, India will find it hard to get waivers from sanctions if the West targets Russia’s energy trade.

The cost of corporate kowtowing to China

5 Apr 2022

In “America Second”, Isaac Stone Fish lays into executives who suck up to Beijing. He and Pete Sweeney discuss how politics and economics are forcing U.S. companies to reframe their approach, what legislations might be in the pipeline, and whether military conflict is inevitable.

China-U.S. ties will degrade regardless of Russia

30 Mar 2022

Beijing and D.C. have squabbled over the invasion of Ukraine. But longer-running disputes are still brewing. That could reignite a trade war with more tariffs, while screening U.S. investments in China would choke off access to that market. The economic decoupling may get worse.

Why U.S.-China financial tension is hard to disarm

29 Mar 2022

Relations between the world’s two largest economies were already tense, and Russia’s invasion of Ukraine has further increased the pressure. In this episode of The Exchange, James Fok explains how the relationship became so fraught, and why it’s unlikely to improve anytime soon.

Chinese sanctions would be a warning versus a slap

24 Mar 2022

The White House vowed consequences if the People’s Republic helps Russia evade restrictions. It requires a delicate jig to avoid pushing the pair closer. Penalties, such as secondary sanctions, may be narrow at first but could quickly ratchet up beyond past punishment playbooks.

Hot war thaws formerly frozen trade routes

17 Mar 2022

Algeria shunned imports of French wheat in a diplomatic row. That has changed because of shortages after Russia invaded Ukraine. The U.S. has even talked to vilified Venezuela. Amid political hype about self-reliance, globalization still matters – even if it requires compromise.

Nickel gets nixed, French firms linger in Russia

17 Mar 2022

The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.

Russia punches economic hole above its weight

16 Mar 2022

The country that was a trade minnow during the Cold War became a big commodities exporter. That’s why the isolation of an economy smaller than Texas is pushing up global prices of energy, wheat and other goods. Though some countries can help fill the gap, consumers will suffer.

Gauging the global backlash against Russia

10 Mar 2022

The shockwaves from President Vladimir Putin’s invasion of Ukraine are reverberating around the world. In our Viewsroom podcast, Breakingviews columnists debate the country’s isolation, the impact on Asia, Europe’s plan to wean itself off Russian gas, and the fallout for banks.

India’s Russian romance will be hard to stifle

2 Mar 2022

New Delhi is under pressure to join others aligning behind Ukraine. Beyond protecting its defence-equipment supplies, however, the ties to Moscow help check China’s influence. And the energy transition even makes a case for the oil-hungry nation to deepen the relationship.

How Europe can kick its Russian gas habit

1 Mar 2022

Conflict in Ukraine shows the folly of the continent depending on gas from Moscow. Speeding up renewable energy would help. To get to zero in a decade, however, Europe will also need other sources of gas, more nuclear power, multi-nation coordination and even consumer rationing.

Oil lubricates Beijing’s Russian tightrope

1 Mar 2022

China relies on crude from the now pariah state for nearly a fifth of total imports. Though the pair can sidestep Western sanctions on Moscow and settle most transactions in yuan, being too helpful could backfire on Beijing. Its banks will be caught in the crossfire either way.

Russia’s wheat clout can hit world where it hurts

25 Feb 2022

The grain’s price hit a record high after the invasion of Ukraine, source of 8% of world exports. A long conflict in a country called the “breadbasket of Europe” would mean global shortfalls. President Vladimir Putin would cause even more disruptions if he curbed Russian exports.