Government & Agencies

RWE makes for a good coal wind-down guinea pig

10 September 2021

The 22 bln euro German utility’s new activist wants it to ditch carbon-intensive lignite assets faster. If the government wants to hit tougher CO2 emissions targets, RWE will have to. The least-bad way forward may be for Berlin to assume the offending power plants itself.

Capital Calls: Vaccine mandates, U.S. debt ceiling

10 September 2021

Concise views on global finance: New White House requirements for Covid-19 injections will provide cover for businesses while Washington lawmakers arguing about borrowing limits make themselves look foolish.

Texas abortion law shows limit of company advocacy

9 September 2021

Shar Dubey, CEO of dating group Match, is starting a fund to help staff who need abortions now that Match’s home state bans most of them. Dubey’s proposal raises legal and other issues. But financial realities make it hard for her company, or others, to go much further.

German election offers more continuity than chaos

8 September 2021

A three-way coalition may lead the EU’s largest economy after September’s poll. A grouping of left, right, or green lawmakers could take months to form and shirk reforms at home and in Europe. Climate change and the pandemic aftermath will still shape policy for the better.

Capital Calls: AMC, German pet retailer

8 September 2021

Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.

El Salvador takes a risky punt on crypto

7 September 2021

Bitcoin is now an official currency in the Central American republic, alongside the U.S. dollar. There are potential benefits for a country that is so dependent on remittances from abroad, but President Nayib Bukele’s pioneering move has way too many downsides.

Capital Calls: UK interventions, Post-virus reset

7 September 2021

Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.

Guinea coup is win for Australia and Brazil

6 September 2021

Soldiers have deposed the West African nation’s president, Alpha Condé. Besides disruption to bauxite exports, the upheaval may upend development of the Simandou mine’s 8.6 billion tonnes of iron ore deposits, capable of adding 10% to global output. Rival diggers will be smiling.

China adds shades of grey to golden shares

6 September 2021

Beijing’s mooted investment into ride-hailing group Didi has templates in ByteDance and electric-vehicle maker Nio. But as a listed company not in financial distress, any official intervention to claim more rights over the data-rich giant is likely to feature on the darker side.

Review: Covid-19 and the crises yet to come

3 September 2021

2020 was one of the most seismic years in world history. Adam Tooze’s “Shutdown” recaps how the pandemic exposed the fragility of an interconnected world, while uncovering some pockets of strength. It’s a troubling test run for future challenges, most notably from climate change.

Japan adds PM’s scalp to Olympic invoice

3 September 2021

Prime Minister Yoshihide Suga is stepping down. His failure to contain Covid-19 and his insistence on holding the $15 bln Tokyo Games despite popular opposition doomed him. His exit may dampen other governments’ enthusiasm for the event and puts economic reform momentum at risk.

Rio Tinto can afford to go halves in Mongolia

3 September 2021

The miner’s $14 bln Oyu Tolgoi scheme is over budget and debt-laden, depriving its government partner of a return. Restructuring so only 50% of the project’s free cash pays down debt could restore dividends and win Mongolia over. High copper prices give Rio scope to act.

Xi’s common prosperity becomes financial black box

3 September 2021

Alibaba and Tencent have each pledged $16 bln to the Chinese president's cause. Investors, though, are in the dark on how these huge sums will be deployed. Along with higher taxes, regulatory fines, new laws on data and more, the cost of doing business is fundamentally changing.

Capital Calls: New York City is on climate notice

2 September 2021

Concise views on global finance: Cities with a higher number of wealthier residents will be able to combat climate related events.

Evergrande’s liquidity trap gets stickier

1 September 2021

The distressed Chinese real estate developer doubled first-half profit by dumping assets, but delayed paying suppliers so long it’s struggling to complete projects. As property restrictions tighten, finding buyers for what’s on the books will be harder. Contagion risk is rising.

Australia’s Chinese trade glass is only half full

31 August 2021

Punitive tariffs cost vintners Down Under access to one of their most lucrative markets. Treasury Wine’s results at least suggest there’s demand elsewhere for premium brands. Producers of cotton and other commodities will struggle to replace sales at similar margins.

Electric-car crash is double pain for Evergrande

30 August 2021

The Chinese property developer’s unit saw its equity value fall 90% in four months to just $8 bln. Founder Hui Ka Yan is adept at finding money when the going gets bumpy, but EV makers rely on high values to lure fresh funds. It represents a dead end for its indebted parent too.

Afghanistan’s financial lifeline may lie in Qatar

27 August 2021

The state needs help to prevent an economic collapse. If gas-rich Doha provided funds, as it has to other stricken regimes, it could embolden critics who claim it is too close to militants. But Qatar has a chance to avoid past mistakes and shore up its status as a power broker.

Guest view: Climate’s lessons for the water crisis

27 August 2021

Tackling carbon emissions is at last mainstream thanks to data, science, a clear message and plenty of capital. Martijn Wilder, co-founder of climate advisory and investment firm Pollination, argues that drawing on those can help alleviate worsening floods and water scarcity.

Soothing Zoom filter will suit Powell speech

26 August 2021

The annual Fed confab, again forced online, is usually a place to make news. Last year, the chair outlined new thinking on the central bank's 2% inflation goal. Now reducing $120 bln in monthly bond purchases is top of mind. With Covid resurgent, reassurance is the safest course.