Trump stimulus will only delay next U.S. recession 3 Jan 2017 The president-elect inherits an economy that's in fairly good shape. His planned tax cuts and infrastructure spending will give growth an added short-term boost. Though that may postpone an overdue downturn, Trump is still likely to face a crunch before the next election.
Trump adds attack-dog bite to global-trade bark 3 Jan 2017 GM is the latest target of the president-elect's ire for outsourcing to Mexico. His pick for U.S. trade rep knows how to impose import restraints and tariffs. Robert Lighthizer's nomination heralds a more comprehensive assault on free trade than Trump's Twitter tirades.
Germany’s thriving job market no solace for Merkel 3 Jan 2017 Unemployment has fallen to its lowest since 1981, and the number of people in jobs is at a record. Chancellor Angela Merkel presided over this happy state but will struggle to leverage it in upcoming elections. Voters are more focused on less predictable flows of migrants.
Thruppence: Ten buzzwords to expect in 2017 3 Jan 2017 The dawn of a new populist era will bring even more corporate jargon and political euphemisms to the global lexicon. Think "import substitution" after trade barriers go up, or "fiscal space" as doublespeak for blowing through budgets. Breakingviews columnists place some bets.
Jain’s low-key Cantor role pins hopes on upside 3 Jan 2017 Ex-Deutsche Bank boss Anshu Jain is joining scrappy capital markets firm Cantor Fitzgerald. Though not the high-profile job he might have coveted, the German lender's travails during his stint in charge suggest why. Privately-held Cantor can grow outside the limelight.
Millennial princes snatch at power in Gulf 3 Jan 2017 Ageing monarchs may hand greater powers to a younger, more progressive generation in 2017. Falling oil revenues and ballooning budget deficits are forcing sheikhdoms to make overdue economic and social reforms or risk financial meltdown. Millennial thinking could help.
Exec pay is crying out for a race to the bottom 3 Jan 2017 Battles against corporate excesses are worthy but come unstuck all too quickly. Bosses keep getting paid more than their predecessors. To save capitalism, some could tender their services more cheaply. The tradition of the $1 CEO serves as a template. Even better: work for free.
ANZ makes welcome progress in slimming down abroad 3 Jan 2017 The Australian lender has sold out of a Chinese bank for a decent $1.3 bln. Newish CEO Shayne Elliott is moving decisively to unload capital-intensive Asian assets. Other holdings could be trickier to shed but any progress will help ANZ narrow the valuation gap with its peers.
Bank rate cuts are a key step in India’s recovery 3 Jan 2017 Admonished by Prime Minister Narendra Modi, banks are slashing lending rates up to 90 basis points. That is critical to kick-starting credit growth and thus the economy. But all the uncertainties created by a nationwide cash crunch mean it is too soon to cheer a revival.
Too many forex fiddles make Beijing look nervous 3 Jan 2017 Regulators have put fresh restrictions on individuals changing money. They've also doubled the number of currencies in the official trading basket, a statistical trick to make the sliding yuan look stable. Instead of fooling investors, official anxiety could aggravate outflows.
Breakingviews predicts a shaken-up world in 2017 3 Jan 2017 After the upheavals of 2016, governments, companies and investors face unfamiliar terrain. Once-unthinkable scenarios, good or bad, now seem possible. From the U.S. economy to European elections, from M&A to magic mushrooms, our financial insights offer a guide to the year ahead.