Trade

China’s reform camp high-fives Wall Street

16 Jan 2020

The most substantive part of Beijing’s trade deal is the commitment to open its financial sector. Combined with other liberalisations, local institutions face real U.S. competition. That should reduce the credit misallocation that irks trade partners and warps economic growth.

China trade deal gives Trump a campaign win

15 Jan 2020

Beijing pledged to buy more U.S. goods and enforce intellectual-property rights. It has fallen short on similar promises in the past, and anyway the conflict was partly whipped up by the U.S. president. Still, he can tout the new “phase one” agreement as he seeks re-election.

Germany’s rich-country problems matter for Europe

15 Jan 2020

The continent’s biggest economy grew just 0.6% in 2019. A hefty budget surplus creates room for fiscal stimulus. But Chancellor Angela Merkel’s coalition government is divided over what to do and may not act decisively enough. What hurts domestic growth hurts regional prospects.

Trump adds fake currency news to trade armory

13 Jan 2020

The U.S. government will stop accusing Beijing of yuan manipulation as part of a limited tariff deal. The dubious claim was born of presidential ire. But its arguable success makes it a useful stick for the White House – a worry for those with growing trade deficits like Vietnam.

Trump’s soybean dream can be crushed

8 Jan 2020

The U.S. president says China could soon buy as much as $50 bln in farm products from American farmers, including more of the oilseed. But the U.S. doesn’t have the beans, and Brazil’s currency offers a better value. The weakened U.S. agriculture trade could struggle to return.

Middle East strife’s market toll is just beginning

3 Jan 2020

Oil prices rose more than 3% and global bourses fell after a U.S. air strike killed Iran’s top military leader, Qassem Soleimani. The Islamic republic may well follow up its rhetoric of revenge with action. Investors now have a real war, not just a trade one, to fret about.

American election to test Wall Street’s nerves

30 Dec 2019

Whoever wins the White House in November matters more to masters of finance than 2016’s cliff-hanger if it boils down to a choice between Trump’s trade war and an assault on wealth. Breakingviews imagines a conversation among bankers at Park Avenue’s Racquet and Tennis Club.

Taiwan will widen U.S.-China schism in 2020

18 Dec 2019

The island's significance in supply chains stands to grow as manufacturing shifts accelerate. Anti-Beijing sentiment is also gaining traction in the United States. Both dynamics herald deeper ties between Taipei and Washington, bolstering the case for a controversial trade deal.

Trump and Xi go back to square minus-one

13 Dec 2019

The U.S. president will gradually roll back tariffs while his Chinese counterpart has agreed to buy more U.S. crops. Tit-for-tat taxes are halted, not shelved, and thorny issues like forced tech transfers linger. It’s stability, but companies are worse off than when they started.

Viewsroom: U.S. politicians call a truce for trade

12 Dec 2019

House democrats are backing Trump’s deal with Canada and Mexico even as they charge the president with impeachment. A looming deadline heaping more tariffs on Chinese imports could be kicked down the road, too. The chances of bipartisan support elsewhere, though, are slim.

NAFTA 2.0 deal is only opening act for China trade

10 Dec 2019

The White House deserves credit for winning over U.S. Democrats on a revised pact with Canada and Mexico. But investors are waiting for the headliner: an agreement with the People’s Republic as new tariffs loom. Rising tensions with Europe add to the unfolding drama.

Franco-U.S. cheese war will hit prudent tax reform

3 Dec 2019

Emmanuel Macron and Donald Trump may struggle to back down if the U.S. puts 100% duties on Roquefort. Exporters on both sides will hurt. The bigger casualty, though, is an OECD-led corporate tax rethink, which had some good ideas for taxing Big Tech.

Nigeria’s closed border makes case for free trade

27 Nov 2019

President Muhammadu Buhari has shut the land frontiers of the continent’s largest economy to stop food smuggling. Drastic protectionism undercuts the pan-African commerce deal he signed this year. The damage inflicted on the economy will underscore the benefits of open markets.

China sends two messages with one Macau invitation

31 Oct 2019

Beijing may have suggested the gambling hub as a venue for presidents Trump and Xi to sign an interim trade deal. That snubs restive Hong Kong. But it’s uncomfortable too for casino bosses like Trump backer Sheldon Adelson: they need little reminding of how much there is to lose.

Chile’s canceled summits are a climate allegory

30 Oct 2019

The country has pulled out of hosting the U.N.’s annual anti-global-warming confab and the APEC summit following deadly protests over inequality. It exemplifies the dilemmas governments and companies face in trying to tackle long-term problems when there are also immediate needs.

Mike Pence extends prickly olive branch to China

25 Oct 2019

The U.S. vice president blasted Beijing for protectionism, aggression and oppression in a long-delayed speech. He also blamed China for "decoupling" from global norms, but welcomed it to rejoin. The invitation may keep negotiations for a weak trade deal on track, but little else.

Viewsroom: WeWork’s future may lie in China’s past

24 Oct 2019

Beijing-based Kr Space switched from renting out space held on long-term leases to selling services after the shared-office market crashed. Following suit may help WeWork stem losses. Also: climate change and Canada’s election. Plus: the gloomy IMF and unrest in Latin America.

World’s financial superheroes encounter kryptonite

21 Oct 2019

Fixing what’s blighting global growth prospects is, for once, beyond the combined capabilities of the finance ministers and central bankers who frequent the IMF’s annual meetings. They can do a lot, but are proving less potent when gravel is thrown in the gears of world trade.

Viewsroom: China-US trade deal is thin gruel

17 Oct 2019

President Donald Trump is touting the latest Sino-American talks as a real win, especially for farmers. China agreed to buy more agricultural goods like soybeans, but big issues like intellectual-property theft are still up in the air. Plus: The pros and cons of direct listings.

Johnson’s poor Brexit deal avoids worse outcome

17 Oct 2019

The UK prime minister secured an unlikely agreement to leave the European Union, but only by carving out Northern Ireland. Winning parliamentary approval for the economically costly plan will be hard. At least the chaotic exit Johnson had threatened is off the table - for now.