Government & Agencies

Tesla investors get unsubtle hint from SEC

30 September 2018

The watchdog is using its settlement with CEO Elon Musk to impose some much needed adult supervision. The $45 bln electric-car maker must install an independent chair and find two new unbiased directors. It's up to shareholders to push for a broader governance overhaul.

Trump-friendly trade reform is a hard ask

1 October 2018

A trio of international bodies want to tackle some of the U.S. president’s gripes with the WTO and enable more side deals. Yet the proposals do little to bridge differences between Beijing and Washington that threaten the trading system. They also face big headwinds on services.

The Exchange: Sheila Bair

28 September 2018

The chair of U.S. bank regulator FDIC in 2008 recalls how competition and disagreements between watchdogs contributed to the crash. A decade later, despite leaving the industry, she still feels an obligation to warn of the dangers of rolling back some post-crisis reforms.

Data is new beat for transatlantic antitrust cops

28 September 2018

The U.S. DOJ’s Makan Delrahim and the EU’s Margrethe Vestager worry concentrations of personal information may be used to stifle competition. She has been the tougher so far, but the shared focus could hurt tech giants like Facebook and Alphabet that depend on data for profit.

China is feeling the aftershocks of 2008, again

28 September 2018

Wall Street’s implosion taught Beijing to rue reliance on a rival. Yet officials, gloating over U.S. failures, neglected reform. Despite a decade trying to wean itself from American consumers, cash and currency, complacency has left China exposed to bad policies in Washington.

Italy throws down debt gauntlet to EU and markets

27 September 2018

Rome is casting aside fiscal restraint by setting a deficit target of 2.4 pct of GDP through 2021. Such laxity risks swelling the euro area’s second-worst national debt. Political realities may restrain the EU Commission from holding the line. But investors may not be so kind.

Musk suit could uncover Tesla’s true value

27 September 2018

The U.S. securities regulator wants Elon Musk removed as CEO and director, saying he lied about a plan to take the $53 bln electric-car maker private. His exit would leave Tesla much depleted, but also more rationally valued – if it can motor past a looming liquidity crunch.

U.S. for once hits right note with Petrobras fine

27 September 2018

America’s foreign corruption laws often spark outrage about overreach. But penalizing the Brazilian state energy group $850 mln is a judicious result. It shows companies with ADSs will be held to account. And it mainly rewards Brazil’s authorities, which get 80 pct of the money.

Donald Trump sets WTO up for failure

27 September 2018

The system for resolving commerce disputes may grind to a halt after the United States blocked the reappointment of an appeal judge at the global trade body. The president’s disdain for the organisation is no secret, but the move undermines its value to other countries, too.

U.S. data privacy suffers from too many cooks

26 September 2018

Amazon, Apple and other tech executives said a single federal privacy law is needed to avoid fragmented state rules. Different standards also apply to the healthcare and financial industries, while data collection extends beyond tech. Europe has some ideas to offer.

Argentine shake-up raises risks for Macri and IMF

26 September 2018

A new central bank chief improves the chances of securing an increase in a $50 billion credit line with the international lender. President Macri and the IMF are gambling that a freer floating peso will spur growth, not instability. But time is running out for the bet to pay off.

Congress is too close to crying wolf on trade

25 September 2018

America and Canada aren’t near a NAFTA deal and time is short. U.S. lawmakers have said they won’t accept the U.S.-Mexico only pact favored by Trump, but some have criticized Ottawa. If they back down, there’s little hope for any meaningful brake on steel tariffs and the like.

Drug watchdog’s Brexit spat is bad omen for London

25 September 2018

The European Medicines Agency is embroiled in a legal fight to scrap a lease on its UK headquarters. Its argument, that Brexit was an unforeseeable event, looks weak. But even if the regulator loses the case, its actions offer a grim prognosis for London office property.

Texas voters prepare to pick their poison

24 September 2018

Democrat Beto O’Rourke is closing in on Ted Cruz in the upcoming Senate race. The Lone Star state is ardently Republican, but trade war and border controls don’t help a business-friendly, export-heavy economy in the grip of labor shortages. Tricky trade-offs loom elsewhere too.

Trump tariffs fallout hints at protracted battle

21 September 2018

As U.S. companies brace for taxes on another $200 bln of Chinese exports, many say they’re considering leaving the People’s Republic. That has Beijing wondering if such an exodus is as much a policy aim as IP theft. It’s one more reason to think the trade war is here to stay.

Sky battle may end in awkward media giant impasse

19 September 2018

A sealed-bid auction could decide whether Comcast or Disney takes control of the UK broadcaster. The winner will almost certainly overpay. If the cable giant triumphs, the Magic Kingdom might keep its 39 pct stake. That would make the fierce rivals uneasy joint venture partners.

Gary Cohn too quick to vote for President Dimon

18 September 2018

JPMorgan chief Jamie Dimon would be “phenomenal” in the White House, the former Trump adviser says, adding that running the country is like heading a global firm. There are parallels. But Dimon isn’t restrained by an unwieldy Congress – or strict limits on what he can pay.

Guest view: Trump trade war threatens Korean peace

18 September 2018

Invoking national security to impose tariffs on car exporters such as Hyundai and Kia is myopic, argue the Korea Society’s president and a former U.S. ambassador to Seoul. As fresh talks with Pyongyang start, it’s worth remembering that politics cannot be divorced from economics.

The Exchange: Congresswoman Maxine Waters

17 September 2018

The senior Democrat on the U.S. House Financial Services Committee recalls the lack of answers that lawmakers had in the wake of the 2008 financial crisis. The Exchange went to Congress to discuss that period and find out her priorities if she takes over the banking committee.

U.S. Congress requires banking boot camp

17 September 2018

More than 60 pct of lawmakers were first elected after the 2008 financial crisis, and a good chunk after Dodd-Frank was passed. So the meltdown’s causes are lost on many, as is how banking works. With regulatory change on the docket, Breakingviews has drawn up a bluffer’s guide.