Dream of U.S. job surge is partly in Trump’s hands 1 Sep 2017 Although August’s 156,000 new positions fell short of forecasts, the trend is steady. Yet the president may soon subject nearly 800,000 children of illegal immigrants to deportation. Some 30,000 could lose jobs each month; GDP would suffer too. That’s an avoidable hit to growth.
Water investment glass isn’t even half full 1 Sep 2017 Hungary’s president has issued a rallying cry for the $12 trln needed by 2030 to meet water-linked climate goals. The problem isn’t a lack of money, but emerging states’ poor governance and lack of financial nous. Multinationals and pushy investors could help change that.
Harvey’s damage will long outlast the storm 31 Aug 2017 The sun is out over South Texas but the toll from the hurricane’s record rains keeps rising. With refinery closures extending eastward and a chemical plant exploding, the governor says losses could top Katrina’s. Gas shortages and surging prices will spread the economic fallout.
Macron’s labour reforms are a gutsy start 31 Aug 2017 Changes such as greater bargaining freedom for employers will make the economy a bit more dynamic. The symbolism is as important. Introducing a highly unpopular cap on unfair dismissal payouts shows President Emmanuel Macron is willing to reform at the expense of poll ratings.
Silicon Valley takes the slow lane to Washington 30 Aug 2017 The likes of Facebook and Amazon are desperately playing catch-up in the policy-shaping game. AT&T, Comcast and other internet providers have spent more than $100 mln lobbying over the last 18 months. It may give them an edge in the nasty battles over net neutrality and privacy.
U.S. tax reform plan can contain hidden loopholes 30 Aug 2017 The GOP no longer wants to tax worldwide corporate profits, which pushes companies to move overseas. It’s a good idea but may create other ways to dodge Uncle Sam. Accounting for assets like patents would help ensure firms, especially in tech, don’t game their government bills.
Russian bailout rekindles too-big-to-fail angst 30 Aug 2017 Otkritie, one of Russia’s biggest lenders, is being rescued by the central bank. It shows the perils of aggressive expansion and Russia’s incomplete system for winding up financial giants. The state has tried to draw a line, but the fact a systemic bank is in trouble is worrying.
German car industry may become Merkel’s nemesis 30 Aug 2017 Re-election in September will lumber Chancellor Angela Merkel with the challenge of managing a crisis that is looming in the auto sector. The fight for clean air in cities could accelerate the shift to electric vehicles and jeopardise up to a tenth of Germany’s industrial jobs.
Harvey intensifies brewing flood-insurance storm 29 Aug 2017 The Texas disaster will put U.S. federal coverage, already $25 bln in debt, further under water. Among other snags, the subsidized program encourages building in high-risk areas. Climate change will worsen future events, too. Houston’s crisis is the ideal catalyst for reforms.
British banks edge closer to painful PPI clarity 29 Aug 2017 The UK watchdog is encouraging consumers to claim for mis-sold loan insurance by Aug. 2019. If it works, the 36 bln pounds big banks have set aside so far may not be enough. A firm deadline could make the final bill larger but is a necessary step in fixing finance’s reputation.
UK pay clampdown places enduring faith in markets 29 Aug 2017 The government will force companies to disclose how much their CEOs are paid relative to their workers. The move to restore public faith in business relies on shareholders to hold firms to account. But past efforts to improve transparency have failed to check corporate excess.
How the Bank of Japan can keep the money flowing 25 Aug 2017 The disappearance of inflation is the big debate for central bankers in Jackson Hole this weekend. That puts Japan in an uncomfortable spotlight. The BOJ is running short of government bonds to buy - but could do more by becoming more creative in its asset purchases.
Telecom Italia breakup is a three-way tug of war 24 Aug 2017 Government ministers are talking about separating Telecom Italia from its network. A breakup could be beneficial for the Italian government, and TI’s biggest shareholder Vivendi. Other shareholders would be harder to satisfy.
Trump antics may be virus, cure for uneasy market 23 Aug 2017 The president threatened a government shutdown over border-wall funds as the risk of a U.S. debt default looms weeks away. Trump is angering the lawmakers he needs on the issues. Ironically, his divisiveness could actually unite the middle to resolve these economic hurdles.
Hadas: Corporate do-gooders are due a revival 23 Aug 2017 Paternalistic companies planted the seeds of government welfare programmes. Their ideas now seem out of date. But the rise of the left-behind, and the kind of social rifts shown in Charlottesville, show the need for more active, personal and short-term costly interventions.
O2 – and Britain – are losers in 5G spectrum fight 21 Aug 2017 Telecom operators BT and CK Hutchison’s Three are threatening legal action over planned auctions of mobile spectrum. The rules are sturdy enough to promote competition and a court fight could delay the rollout of superfast 5G internet. Rival O2 and Britons have the most to lose.
Economic nationalists still linger in White House 18 Aug 2017 Steve Bannon, who advocated protectionist, "America first" policies, is out. That's a plus for the economy. But other foes of trade and immigration continue to influence Donald Trump. The centrists’ fight waged by Gary Cohn and others will get easier but it’s not over.
Merkel matters less than her next coalition allies 18 Aug 2017 The German chancellor is poised to win a fourth term in September’s vote. However, Angela Merkel may well be forced to govern with a small majority in partnership with the Free Democrats. That party’s trenchant calls for even more austerity are bad news for Germany and Europe.
Britain tries Trojan Horse trade tactic in Ireland 17 Aug 2017 The EU wants the Northern Ireland border issue resolved before the UK’s wider exit terms can be agreed. New proposals from London effectively couch Britain’s trade agenda in concern for the peace process. Having Dublin onside raises the chances of Britain getting what it wants.
U.S. blunt force ill-suited to NAFTA intricacies 16 Aug 2017 President Trump’s trade chief demanded changes to reduce the country’s trade deficit at the renegotiation kickoff. He also wants to speed up talks given upcoming elections. The America First tone fails to recognize that Canada and Mexico have leverage, and face pressure at home.