Budget deal leaves EU isolated in Ukraine aid push 2 Feb 2024 The EU avoided a crisis by salvaging its 50 bln euro funding plan for Kyiv after Hungarian strongman Viktor Orbán fell in line. Europe is, however, isolated in its drive to support Ukraine, as long as a $61 bln similar aid package is stalled in the US Congress.
Korea’s battery giants engineer volatile US gains 2 Feb 2024 LGES and Samsung SDI have announced more than $18 bln of investments to build factories Stateside. Thanks to generous tax credits from Washington, those bets could pay off. But slowing EV growth and policy risk – amplified by US elections this year – will be an unstable mix.
American unions can’t bargain with the inevitable 1 Feb 2024 Workers in industries from coffee to movies rose up in 2023, but long-term trends are working against organized labor. Some, like auto workers, are a threat to employers. But even there, a combination of legal and societal shifts make for a less-united future.
Revamp of the world order will have to wait 29 Jan 2024 Developing countries last week called for a rethink of global governance. While it’s possible to imagine an order more conducive to peace, justice and prosperity, the chances of creating it are slim. Better to shore up the existing multilateral system and wait for better times.
Financial fallout is hardwired into new nuclear 26 Jan 2024 France’s EDF wants help with the costs of its Hinkley Point C plant, which now exceed 30 bln pounds. Britain can say no, but needs the power. Globally nuclear capacity is supposed to treble by 2050, but future investor, state and customer spats on overruns look inevitable.
Indonesia’s nickel policy looks fragile 26 Jan 2024 Outgoing President Joko Widodo's push to embed the country into electric-vehicle supply chains is under scrutiny ahead of elections next month. Global companies face an anxious wait to see if the policy will be fine-tuned; beyond the polls other threats are piling up too.
Gary Gensler crafts SEC into a mighty sandcastle 25 Jan 2024 The chief US securities watchdog has outpaced predecessors in making rules and extracting penalties from firms like Morgan Stanley and D.E. Shaw. But his aggressive approach has inflamed a wider war on regulation. Gensler’s accomplishments could yet wash away.
Capital Calls: Greek airport IPO 25 Jan 2024 Concise views on global finance: The Athens government is selling 30% of the country’s biggest airport operator, aiming for a market capitalisation of up to 2.4 bln euros.
Take China’s easing signal with a pinch of caution 25 Jan 2024 Beijing is releasing $140 bln of liquidity at banks, trimming some lending rates, and talking up measures to boost the appeal of stocks. It is also pressing on rebalancing the world’s second largest economy. In a grand overhaul, short-term pain can only be managed to a point.
ECB is battling an imaginary wage spiral 24 Jan 2024 European Central Bank President Christine Lagarde is set to hold rates this week because she fears rising salaries will boost inflation. Yet euro zone workers are getting raises of just 3.8%, down from a year ago. Frankfurt may not want to cheer bigger pay, but it can ignore it.
Four-day week is clever fix to economic malaise 24 Jan 2024 Companies including EssilorLuxottica and Panasonic are experimenting with shorter working weeks. Pilot schemes have led to revenue increases, declines in burnout rates and lower churn. It’s an anti-inflationary way to keep staff happy and give them free time to consume more.
Fractured world is changing investment geography 23 Jan 2024 Washington and Beijing’s quasi-Cold War, and rising protectionism, are already hurting foreign direct investment. Though some states are gaining from China’s falling FDI, overall cross-border flows are down. If Trump becomes US president, they will take another hit.
Strong yuan, not stock market, tops Xi’s wish list 23 Jan 2024 The State Council pledges it will promote a stable capital market. Yet Beijing is showing more urgency in supporting the yuan, weakened by foreign selling. A strong currency is central to President Xi Jinping’s goal to make China a financial power. A strong stock market can wait.
Red Sea oil tension may revive Russia-Saudi spat 22 Jan 2024 Exchanges of fire between Yemen’s Houthis and the US military have hiked costs for Moscow to ship oil via the Suez Canal to China and India. One upshot could be Russia loses market share to Saudi Arabia. That may reopen the sort of tensions that led to the duo’s 2020 price war.
It will take more than Draghi to boost EU growth 22 Jan 2024 Europe can’t decide if it will be more competitive with open markets or heavily protected national champions, and it wants Mario Draghi to pick. Italy’s former PM is more likely to reflect than resolve tensions among members. But the bloc can’t up its game behind closed doors.
Capital Calls: Birkenstock 19 Jan 2024 Concise views on global finance: The German sandal maker gets a reality check from investors three months after its much-hyped IPO.
Global risk pile-up penetrates Davos bubble 18 Jan 2024 Nearly 3,000 movers and shakers have converged on the Swiss resort amid crises in the Red Sea, Gaza and Ukraine. In this Viewsroom podcast, Breakingviews columnists discuss how Davos-goers unable to ignore these perils are nervously anticipating another Trump presidency.
China’s war on corruption turns into high wire act 18 Jan 2024 Xi Jinping is declaring victory in his decade-long war on graft. He has made more progress than India and the US over the same period by some global standards. Yet the decision to double down on cleaning up the finance sector when the economy is weak could come at a heavy cost.
US Steel deal stokes fiery stakeholder standoff 17 Jan 2024 The $14 bln sale to Nippon Steel is riling workers and politicians. A rival Cleveland-Cliffs bid will attract trustbusters. Staying independent would anger shareholders and squeeze automakers. It epitomizes today’s fraught M&A, but the Japanese buyer is in the strongest position.
Time for EU to assist its solar panel industry 17 Jan 2024 Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.