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.
Biden shoots antitrust blank at oil giants 18 Nov 2021 The U.S. president wants regulators to examine anticompetitive behavior by oil and gas groups. Similar past efforts have fizzled because energy firms mostly take prices in a global market. But affordable gasoline is a political must even if it conflicts with Biden's bigger goals.
Glasgow’s carbon market overhaul is only half done 18 Nov 2021 The U.N.’s COP26 summit agreed tougher accounting standards for emissions credits, a market ex-BoE Governor Mark Carney hopes can swell to $100 bln a year. It’s a step forward, but loopholes remain. Companies that don’t like greenwashing have a strong incentive to help police it.
Belarus’ gas muscle-flexing is self-sabotage 16 Nov 2021 President Lukashenko may regret his threats to disrupt flows of Russian gas to Europe. The pipeline crossing his territory is already of waning importance. By potentially hastening the opening of Russia’s Nord Stream 2 line to Germany, he’s bringing forward its retirement.
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.
Sudan coup throws rock into choppy Nile waters 28 Oct 2021 The army has seized power in Khartoum, pushing it back into diplomatic isolation. Sudan and Egypt had existing gripes with Ethiopia over the damming of the mighty river. Removing Khartoum’s veneer of civilian rule risks future spats over Nile water use spiralling into conflict.
Capital Calls: Real estate distress is tricky call 15 Oct 2021 Concise views on global finance: Barry Sternlicht’s Starwood Capital has raised a $10 bln fund to buy struggling buildings. With the pandemic's long-term effects unclear, the key will be avoiding those destined to remain empty.
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.
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.
World Bank has a shareholder-engagement problem 17 Sep 2021 Leaders, including now-IMF head Kristalina Georgieva, pressured staff to boost China’s ease of doing business ranking, a probe said. This isn’t realpolitik mitigating inherent U.S. bias. Such tactics detract from the bank’s work, damage credibility and impair its future role.
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.
Financially isolating Afghanistan is pointless 25 Aug 2021 Much of the budget has evaporated with the abrupt halt on aid, and an effective U.S. freeze on central bank reserves is compounding the chaos. An economic collapse will only fan extremism and refugee outflows. Targeted support is urgently needed to preserve development gains.
Viewsroom: China’s Afghanistan question 19 Aug 2021 Beijing was able to expand its influence in central Asia while America and its allies held back the Taliban. The Islamic fundamentalists’ return to power presents China with new challenges – and opportunities. Plus: CEO Mike Henry shakes up mining giant BHP.
Dixon: Afghan crisis is climate risk, opportunity 19 Aug 2021 The Western alliance may be so damaged it can’t provide climate leadership. Global decarbonisation plans would fail to build momentum, storing up massive financial pain. But there’s a chance the West will regroup – and devise a Pax Planeta to replace the failed Pax Americana.
Xi’s wealth redistribution push starts with stick 18 Aug 2021 China’s president wants to restrain “unreasonable income”, hike wages and expand the middle class. That helps explain his rough treatment of tech and real estate tycoons. Fiscal transfers and social services imply fresh burdens for China Inc, and a long-delayed property tax.
Zambian sunlight could disperse Chinese debt fog 18 Aug 2021 The African state’s new leader, Hakainde Hichilema, has to forge a deal with creditors after last year’s default. Getting China to the table won’t be easy. Lifting Beijing’s veil of secrecy by revealing Lusaka’s loans would remove the biggest barrier, and set a good precedent.
Afghanistan puts China firmly on leadership hook 16 Aug 2021 Beijing might exploit the collapse of the U.S.-backed state to consolidate economic influence in central Asia and improve energy security. But a volatile theocracy could also threaten its rising regional investments, and ultimately suck it into the mess the Americans fled.
Review: Turning Beijing’s playbook against it 30 Jul 2021 China wants to become a global hegemon, Rush Doshi, the White House’s lead China wonk, argues in “The Long Game”. To halt its advance, he suggests copying Beijing’s strategy, and discouraging U.S. corporate engagement with China by tweaking taxes. He has few allies and less time.
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.
Capital Calls: Intel, SPAC lobby 16 Jul 2021 Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.