Trade

West has some cover to ramp up Russian sanctions

24 Feb 2022

Sberbank and VTB halved after troops invaded Ukraine, suggesting Moscow’s banks and oligarchs may end up pariahs, like the Nord Stream 2 pipeline. A Russian tit-for-tat might hit European gas supplies. The one comfort is that end of winter makes it less of an immediate problem.

Canada’s trade risks go beyond bridges to America

23 Feb 2022

Trucker protests paralyzed a key border route, exposing the country’s reliance on its largest trading partner. But Canada also suffers from internal barriers between its provinces and territories. Removing those could boost the economy, if local protectionism can be overcome.

The Exchange: Why economic walls don’t work

22 Feb 2022

Presidents Donald Trump and Joe Biden both embraced barriers like tariffs as a U.S. response to technology and globalization. Former White House economic adviser Glenn Hubbard argues that such strategies will fail. But policymakers can do more to take care of those left behind.

Risk of war implies lasting Russia discount

22 Feb 2022

Groups like Sberbank plunged after President Vladimir Putin sent tanks into two Ukrainian regions, although lame European sanctions helped them recover. Even if the Kremlin leader halts his military advance, the threat of tougher penalties will linger over Russian assets.

Italian CEOs’ Putin call exposes European discord

26 Jan 2022

Rome is pushing the firms to scrap their virtual chat with the Russian leader. With their varying degrees of investment, trade and energy dependence, Europeans have more to lose from sanctions against Moscow than the United States. That lets Putin pit them all against each other.

DJI is a more elusive U.S. target than Huawei

16 Dec 2021

Washington is putting a bigger squeeze on the Chinese drone maker by blocking American investment in the company. But unlike Huawei’s telecom gear, DJI products are widely used in the United States, including by police. Western rivals are tiny, making an outright ban tricky.

Viewsroom: China goes global, Harleys go electric

16 Dec 2021

Gina Chon assesses how China’s 20 years of membership of the World Trade Organization have played out compared to expectations in 2001. And Jonathan Guilford test-drives Harley-Davidson’s deal to merge its electric-motorcycle unit with a blank-check company.

Wrecking WTO has become Sino-U.S. joint venture

10 Dec 2021

Critics think letting the People’s Republic into the global trade group in 2001 was a mistake. Beijing supported the WTO's style but sabotaged its substance. Now Washington is doing the same. A world system driven by state-backed champions has less room for free trade.

Covid, guns, drugs fuel irreparable labor shortage

3 Nov 2021

U.S. employers are scrambling as a record 4.3 mln people quit their jobs in August. The past year-plus also brought some 900,000 deaths from the virus, shootings and overdoses. And 2 mln more retired than expected. Even those capable of returning need more than just higher wages.

Capital Calls: KKR, Ferrari, HelloFresh

2 Nov 2021

Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.  

EU-U.S. green steel deal shows way for COP26

2 Nov 2021

Washington and Brussels will set a common external tariff for dirtier types of the metal. It’s similar in effect to the EU’s carbon border levy, with less of the grief. The lesson for Glasgow negotiators is that sector-based deals may be a safer bet than big multilateral ones.

Capital Calls: U.S. deal watchdog, Italian IPO

5 Oct 2021

Concise views on global finance: Blog posts from the FTC’s competition chief reveal plans to go way bigger when extracting concessions from merging companies; Italy's $5 billion security group Leonardo is taking a second run at listing its DRS unit in the United States.

Huawei deal offers illusion of U.S.-China progress

27 Sep 2021

Washington has walked away from an extradition fight with the telecom giant’s Meng Wanzhou, one in a series of concessions. President Xi Jinping has given nothing substantial in exchange, and is doubling down on aggressive economic policies. Any relief will be short-lived.

Aussie subs are lightning rod for global tensions

20 Sep 2021

French ire at losing a $40 bln defence contract to America and the UK may jeopardise an EU trade pact with Canberra. Frictions between allies make it harder to form a united front against China on commerce. And the new security pact hinders attempts to thaw Sino-U.S. relations.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 Sep 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Capital Calls: Biden channels Trump on China

16 Sep 2021

Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.

Australia’s Chinese trade glass is only half full

31 Aug 2021

Punitive tariffs cost vintners Down Under access to one of their most lucrative markets. Treasury Wine’s results at least suggest there’s demand elsewhere for premium brands. Producers of cotton and other commodities will struggle to replace sales at similar margins.

Capital Calls: U.S. GDP

29 Jul 2021

Concise views on global finance: Supply chain woes are tripping up solid U.S. economic growth. GDP grew 6.5% in the second quarter, a big miss from estimates of 8.5%.

UK’s Northern Ireland antics imperil other goals

21 Jul 2021

Less than two years after agreeing a bespoke deal for the province, Boris Johnson wants to change it. A lack of trust with the European Union complicates a compromise. A new Brexit standoff will also threaten the prime minister’s other ambitions, such as a global climate deal.

Capital Calls: BBQGuys go easy on the hot sauce

20 Jul 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.