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.
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.
Brexit election is answer to the wrong question 30 Oct 2019 The December poll is a flawed second referendum on Britain leaving the European Union. Prime Minister Boris Johnson needs a majority to push through his deal; other parties have to set aside rivalries to stop him. As in 2017, divided voters could deliver an inconclusive result.
Saudi Arabia adds World Bank halo to FDI horns 24 Oct 2019 The kingdom is becoming a better place to do business, the global lender says. But both short and long-term data show it’s a long way from attracting the flows of foreign capital needed to make its Vision 2030 plan fly. That requires stability and wider reform. Saudi lacks both.
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.
U.S. hits Turkey where it hurts with bank charges 16 Oct 2019 The Justice Department accused Halkbank of helping evade sanctions against Iran. A big fine would erode the state-owned lender’s already weak capital position. Ankara can act to contain the damage but a ban on shorting bank shares signals the government sees systemic risk.
Markets show Boris Johnson benefits of Brexit deal 11 Oct 2019 Sterling and stocks in UK-focused companies rose after Britain’s prime minister and his Irish peer said they had a “pathway” out of their standoff. Agreement is far from certain, as is parliamentary approval. But the advantages of avoiding a chaotic departure are crystal clear.
Boris Johnson’s Brexit long shot is short of time 3 Oct 2019 The prime minister’s long-awaited blueprint for leaving the EU has major flaws. Even if Brussels agrees to negotiate, it is far from clear that parliament would approve a deal rather than extend the Oct. 31 deadline. A final showdown may have to wait until after an election.
Hong Kong’s next phase starts with ominous bang 2 Oct 2019 Police shot a protester during clashes on Communist China’s 70th anniversary, in contrast to Xi Jinping’s message of peaceful development. Beijing’s quandary also became starker: it needs to restore calm for economic stability, but tougher intervention will fuel further unrest.
China turns 70, to forced applause 30 Sep 2019 The People's Republic marks seven decades of single-party rule on Tuesday. Critics who predicted regime failure underestimated its ability to create wealth and crush resistance. But the cowing of internal critics is a growing risk to economic resilience.
White House tests corporate corruption firewall 24 Sep 2019 From withholding Ukrainian aid to making money out of lodging visiting dignitaries, the U.S. administration has muddied the waters on acceptable behavior. Companies face tougher enforcement, which helps keep them on the straight and narrow. The gap between the two is widening.
Climate-savvy financiers are the next jobs bubble 23 Sep 2019 Banks and investment firms need people with the skills to raise their environmental game. Technology and on-the-job training can help. But for better or worse, outside hires send a stronger signal. With clients and consultants chasing the same talent, it will get expensive.
Pig crisis gives China a shot at transparency 18 Sep 2019 African swine fever has driven local pork prices up by about 50% in a year. Inflation remains muted regardless, prompting some speculation that officials may be massaging the figures. Other factors make that unlikely, but it's a rare opportunity for Beijing to open up – a little.
Washington casts longer shadow over Hong Kong 16 Sep 2019 Protests in the Chinese territory have rallied momentum for a proposal that scrutinises its special trade status and threatens sanctions. It’ll be hard to make the bill a priority in Congress, but President Trump could use it as leverage as he seeks a broader deal with Beijing.
Trump’s chaos theory of negotiation is a dead end 26 Aug 2019 The U.S. president says trade talks are back on with Beijing three days after escalating tariffs and calling Chinese leader Xi Jinping an “enemy.” Yet his erratic aims and tenor make it hard for counterparties to engage, as the G7 demonstrated. It’s no way to strike a good deal.
U.S. recession signal bears clear fingerprints 14 Aug 2019 A key bond-market metric flashed a downturn warning last seen in 2007, hammering stocks. Business confidence and investment are dropping, China is slowing and Germany’s output just fell. The common thread linking these is Donald Trump’s trade war. At least he’ll win lower rates.
Huawei desperately wants for friends like Facebook 14 Aug 2019 The handset maker has rolled out its own operating system in case Washington blocks its access to Google’s Android. The hope is that foreign apps will create compatible versions. Huawei is dangling big incentives for developers but financial ones may not be sufficient.
Trump trade tweets are the new Fed and jobs report 2 Aug 2019 The U.S. president on Thursday unexpectedly threatened a 10% levy on $300 bln of imports from China. He rattled markets more than the central bank’s interest-rate cut a day earlier, and put Friday’s steady jobs report in the shade. Economy-watchers must now scan Twitter.
Review: Fighting the second Cold War, lab by lab 26 Jul 2019 U.S. scientific power is a potent diplomatic weapon. Greg Whitesides's new book details how Washington used research largesse to reward friends and punish the Soviet Union. Now a similar conflict is brewing with China, a more formidable rival. This time, there can be no winner.
Japan-Korea spat returns chip price error message 25 Jul 2019 Earnings at semiconductor giant SK Hynix plunged 88%, weighed down by a worldwide glut. Yet shares rose on hopes that Tokyo's export curbs to South Korea will depress supply and lift prices. The risks of weaker demand and supply chain ruptures suggest the rally looks premature.