America throws South Korean chipmakers for a loop 28 Oct 2022 Samsung and SK Hynix dominate the memory market and can adjust output to protect profits as demand falls. But that flexibility will be eroded under Washington's export curbs against China, where the pair have factories. It's an example of the unforeseen effects from the tech war.
U.S. high-tech chip curb risks lower-tech blowback 11 Oct 2022 Washington’s export controls hinder China from developing advanced semiconductors needed for supercomputers and the like. But the ban may prompt Chinese chipmakers to hasten their progress in the commoditised parts of the market, embedding firms like SMIC in global supply chains.
How West can mobilise trillions to help save Earth 10 Oct 2022 On top of stopping global warming, rich nations have geopolitical reasons to help the countries in the Global South transition from fossil fuels. America’s call for the World Bank to focus more on global needs like climate change is a step in the right direction, says Hugo Dixon.
Europe can shrug off Putin’s Chinese gas Plan B 14 Sep 2022 With exports to its key European market shrinking fast, Moscow hopes to hike gas exports to the People’s Republic. But last year these were just 7% of EU sales, and logistics and sanctions complicate the shift. It need not deter Europe’s talk of a Russian gas price cap.
Europe energy fallout will cascade down the years 12 Sep 2022 The gas crisis is a long-term problem which will make the region poorer and less competitive while saddling it with higher public debt. Dealing with this as well as high inflation will cause further political ructions which will cascade down the years, says Hugo Dixon.
Norway gas lifeline for Europe is the smart move 9 Sep 2022 The staunch NATO ally supplies 25% of the European Union’s gas needs and nearly half Britain’s. A trebling of oil cash and record profit at energy giant Equinor give Norway scope to cut the EU some slack on gas prices. The discount size is less important than the gesture.
Queen was Britain’s ultimate brand ambassador 8 Sep 2022 During seven decades on the throne, Queen Elizabeth II brought stability and dignity as the United Kingdom morphed from a manufacturing economy to a seller of services to the rest of the world. Her death at 96 leaves the country struggling to project the same credibility.
The consequences of Europe’s energy crisis 8 Sep 2022 As Russian President Vladimir Putin cuts off gas through a key pipeline, Breakingviews columnists discuss the response from UK and European governments, how the shutdown could have some longer-term benefits, and when Russia will feel the squeeze of lost revenue.
EU has ways to learn to live with less gas 6 Sep 2022 The closure of a key Russian pipeline leaves Europe facing a 20% shortfall in fuel supply. Measures to cut demand like lower temperatures in homes and incentives for companies to use less energy may soften the blow. More gas-dependent nations like Italy must now work harder.
Europe’s energy cap requires surgical precision 1 Sep 2022 The EU wants to curb surging power costs to avoid a recession. Capping wholesale gas prices will unavoidably dampen the market’s clear signal to reduce demand. Doing the same to electricity prices, especially in a focused and temporary way, looks smarter.
Gorbachev’s bold political plan had economic flaw 31 Aug 2022 The former Soviet leader, who died aged 91, ended the Cold War and launched a liberalisation that brought the USSR to an end. But despite seeing the defects of Communism, he failed to reform Russia’s economy. The result is a country very different from the one he envisaged.
Capital Calls: Taiwan, Meme stocks 18 Aug 2022 Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.
Taiwan digs trenches in battle for chip talent 17 Aug 2022 Officials may force Foxconn to unwind an $800 mln deal with a Chinese chipmaker. This follows a crackdown on mainland companies poaching engineers, as Taipei tries to keep its tech expertise to itself. It could make a surprisingly powerful defence against hostile Beijing.
U.S.-China relationship bleeds by a thousand cuts 8 Aug 2022 Beijing has suspended bilateral cooperation on drugs, climate, military and crime over Washington’s support for Taiwan. In the near term little changes; actual collaboration was minimal. The diplomatic freeze will nevertheless further poison a $600 bln trade relationship.
China’s economic plight ups Pelosi visit risks 2 Aug 2022 Despite Beijing’s warnings, U.S. House of Representatives Speaker Nancy Pelosi landed in Taiwan on Tuesday. Slowing growth and supply chain constraints make it hard for China to retaliate against American or Taiwanese firms. Oddly, that makes a military showdown more likely.
Capital Calls: Heineken’s post-Covid bounce 1 Aug 2022 Concise views on global finance: Beer drinkers are quaffing more than before the pandemic, despite higher prices. But the Dutch brewer’s decision to scrap its 2023 operating profit margin target suggests it can’t entirely escape rising costs.
Global food crisis demands urgent Western response 25 Jul 2022 Russia’s invasion of Ukraine has pushed up food and energy costs around the globe. The most urgent problems are in poorer countries, write William Rhodes and Stuart Mackintosh. Rich nations offered insufficient help for Covid-19. International bodies can do better this time.
Russian grain deal gives food crisis a partial fix 22 Jul 2022 Moscow has agreed to lift a blockade on 20 mln tonnes of Ukrainian grain. That should reduce the scale of a Middle East food crisis, and ease prices which remain high versus 2021. Still, Russia could always renege on the new deal.
Capital Calls: Royal Mail, Europe’s chip champion 20 Jul 2022 Concise views on global finance: Britain’s postal provider is eyeing a potentially messy separation, but a nationalisation would make more sense; shares of ASML, which provides cutting-edge machines for chipmaking, look more appealing despite inflation and geopolitical worries.
Review: The cat and mouse game of Russia sanctions 15 Jul 2022 In “Freezing Order”, investor Bill Browder describes lobbying to suspend the assets of those responsible for the death of his Russian employee. Moscow used economic interests and U.S. lawyers to undermine the sanctions. The same tactics threaten the response to the Ukraine war.