IMF stitch-up would set at least one good example 5 Aug 2019 Kristalina Georgieva, Europe’s pick to lead the lender, is a technocrat who lacks former Managing Director Christine Lagarde’s stature and clout. But the IMF would have to raise its age ceiling for her – about time for a body that prods countries to raise retirement ages.
Lagarde lends ECB continuity more than credibility 2 Jul 2019 International Monetary Fund boss Christine Lagarde is set to replace Mario Draghi as head of the European Central Bank. The Frenchwoman will stick to the policy path he has charted and is a consensus builder. But she lacks central bank experience and will have to win her spurs.
Snap election will limit Greek policy errors 28 May 2019 Prime Minister Alexis Tsipras has called an early vote. He was likely to lose to the pro-business New Democracy party even if he had held out for a few more months. An early ballot is better for the economy given his Syriza party’s attempts to woo voters with giveaways.
Hadas: Profit flows freely, companies behave badly 25 Apr 2019 An IMF study shows a significant increase in companies’ pricing power since 2000 in developed economies. The trend in profitability is likely to bring less investment, more market-stifling mergers and more smugness from managers. Change requires a rethink of how competition works.
Next Ukraine leader will inherit unfunny problems 18 Apr 2019 A comedian whose TV character accidentally becomes president is the front runner to win Sunday’s election and take charge of securing billions of dollars in aid. To unlock the money, Kiev must satisfy the IMF it is tackling corruption. It’s a challenge where life may imitate art.
Zero-sum thinking is rising risk to global growth 15 Apr 2019 U.S. President Donald Trump is not alone in doubting that globalisation helps everyone win. Finance officials at the IMF’s spring gathering wanted more cooperation but often had self-serving ideas about what that entailed. That makes even a mild downturn trickier to handle.
Argentina’s Macri may yet survive his own policies 9 Apr 2019 The president’s support is sinking as the peso dives, inflation persists and poverty rises. Populist nemesis Cristina Fernandez wants to run in October elections, spooking investors. But Macri’s IMF-endorsed policies, even if softened, are likely to endure. He may yet do so too.
IMF plays Cassandra to the global economy 9 Apr 2019 The international lender, whose spring meeting is this week, cut its 2019 world growth forecast to 3.3 percent, with big downgrades for Germany and Italy. Its advice for countries on how to deal with hazards is sound but almost certain to be ignored.
Trump World Bank pick would be fox in the henhouse 5 Feb 2019 The U.S. president is set to nominate David Malpass to lead the global lender. He’s skeptical of multilateralism and of closer ties to China. A challenger for the job – usually America’s choice – hasn’t yet emerged. Some World Bank priorities, like climate change, could fade.
World Bank could be a new stick to beat China 7 Jan 2019 Jim Yong Kim has quit as head of the global lender, and the White House has a big say on his replacement. American officials had already pressured the bank to lend less to China and warned about Beijing’s influence. A hawkish new boss could create a new front in the trade war.
Credit Suisse Mozambique mess is shameful at best 4 Jan 2019 Three of the Swiss lender’s former bankers have been arrested on charges of facilitating kickbacks on $2 bln of loans for the African country. Credit Suisse blames deceptive employees and says it has tightened controls. Even if the fallout ends there, it’s highly embarrassing.
Ghosts of Argentine past will come for Macri’s job 26 Dec 2018 The pro-business president has had to seek IMF help as he tries to steer Latin America’s No. 3 economy to health. That’s a gift to his discredited Peronist opponents. Recovery from drought and currency collapse may come too late to prevent the return of the spendthrifts of yore.
IMF rightly focuses on left side of public ledger 10 Oct 2018 Investors obsess about national debts, but pay far less attention to assets. An IMF analysis tries to restore some balance. Though data is patchy, measuring net worth could offer a clearer picture of a country’s financial health – and oblige politicians to manage it better.
Trump-friendly trade reform is a hard ask 1 Oct 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.
Virtuous Macri circle turns vicious for Argentina 30 Aug 2018 The pro-market leader of Latin America’s No. 3 economy has been laying the basis for long-term prosperity. But inflation, drought and soured investor sentiment threaten his efforts. A new run on the peso, and desperate rate hikes, make a return of his Peronist nemeses more likely.
Hadas: Turkey shows damage of fading world order 14 Aug 2018 The country and its foreign creditors have had an irresponsible relationship for decades. The latest crisis is different because one-time supporters like the U.S., EU and IMF are less willing to help, and there are no credible replacements. Prepare for more currency crises.
Viewsroom: Tesla’s wild and crazy ride 9 Aug 2018 CEO Elon Musk’s tweet about wanting to take the company private is causing a stir. Unorthodoxy aside, its volatile boss and weak corporate governance means Tesla is better off the public roads. Plus, Pakistan’s likely new leader Imran Khan will have to go hat in hand to the IMF.
Guest view: Finance can do better on development 29 Jun 2018 Big banks should be helping emerging countries meet the Sustainable Development Goals, a challenge that could open new markets worth $12 trln. Yet well-intentioned rules meant to keep the financial sector safe can get in the way, argues Christopher Lee of the Milken Institute.
Debt relief puts floor under Greek bank pains 28 Jun 2018 A government deal with creditors should lower funding costs for Greece’s big four lenders. With bad loans accounting for 48 percent of lending, normality remains a way off. But ending shareholder angst over debt sustainability could be the first step in banks’ rehabilitation.
Argentina’s $50 bln IMF deal has a year to work 8 Jun 2018 President Macri, like Cardinal Mazarin’s preferred generals, has been lucky as well as bold so far in his efforts to fix Latin America’s No. 3 economy. With elections not due until late 2019 and the deal shielding social spending, he has time to beat opponents’ IMF-phobia - just.