Labour

Biden has too much confidence in Bidenomics

20 Jul 2023

The president’s new slogan parades a revival of US manufacturing and jobs. Spreading the word now, however, could backfire. Sticky inflation and slower hiring are out of Biden’s control, and they could leave voters poorer or jobless by the time they reach the ballot box.

How to breathe life into zombie office property

18 Jul 2023

Lenders are steering clear of buildings that face reckonings from remote working, pushing prices down. In this Exchange podcast, real estate investor Scott Rechler argues that it will take financial and civic engagement to make empty space desirable for living – and investing.

In US, strike now or forever hold your peace

17 Jul 2023

Hollywood’s first joint walkout by writers and actors in six decades adds to a year riven by strikes. A hot labor market strengthened workers’ hands, but as hiring slows, bosses will reassert themselves. That could prompt more employees to flex their power while they still can.

China risks leaving it too late to stimulate

17 Jul 2023

The world’s second-largest economy grew a slower-than-expected 6.3% in the second quarter. Yet despite weakness in property and consumption, there are pockets of strength. Hitting the 2023 growth target looks less certain and a sharper slowdown could yet catch Beijing off guard.

Central banks’ calls for pay restraint ring hollow

29 Jun 2023

Western central bankers want workers to ask for lower raises unless firms cut their margins to compensate staff. With salaries growing less than inflation, that’s a harsh demand. Past rate rises will in time cool labour markets. Officials need to talk less and wait longer.

Supply chain scrutiny may upend EU solar ambitions

23 May 2023

Renewable groups must forgo photovoltaic components from China’s Xinjiang to comply with forced labour curbs. Yet the region produces 35% of the pure silicon needed in panels, and US firms are scooping up the non-Chinese supply. Enforcing a ban may scupper EU green targets.

Disney can play Scrooge with Florida

19 May 2023

The $170 billion media company has cancelled a $1 bln project in the state, favoring California. If political wrangling between the two sides continues to intensify, the House of Mouse’s pullback from Florida promises even more pain for Governor Ron DeSantis.

Capital Calls: BT, Mediobanca

18 May 2023

Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.

Why the jobs market could brush off AI threat

16 May 2023

Hiring seems to be waning in the US and Europe. Yet in this Exchange podcast, recruitment boss Sander van ’t Noordende strikes a hopeful note. The Randstad CEO explains why artificial intelligence and a possible economic slump are doing nothing to dampen demand for talent.

AI offers leisure, if not happiness

12 May 2023

Technology has outpaced economic growth for 50 years, while workers have long traded higher productivity for more leisure. These trends will continue as artificial intelligence automates more jobs. The salient question is how to distribute the gains – and the free time.

EY’s split fiasco will spark slow-motion decline

25 Apr 2023

The audit giant’s bean-counters are insulated against a rapid loss of business after its failed breakup. But EY’s more profitable consulting arm, including its prize tax unit, is less so. More reticent new clients and staff may see the Big Four become the Big Three-and-a-half.

Commercial property pain is only just beginning

13 Apr 2023

Valuations of offices and shopping malls are under threat as rising interest rates ratchet up the cost of buying real estate. In this Viewsroom podcast, Breakingviews columnists discuss how inflation and remote working could make the crisis far worse than 2008.

European pay anger is more costly than inflation

3 Apr 2023

Workers are striking and demanding salary hikes to make up for higher living costs. Governments and central banks are warning about the risks of a consumer price spiral, but after three years of real wage stagnation, further restraint will inflict political and economic pain.

Capital Calls: Bank of England, Wonder drugs

23 Mar 2023

Concise views on global finance: The UK central bank has joined peers in raising rates, but there’s not much room to keep hiking. Meanwhile, a drug that might help smokers’ lung is could be good for makers Regeneron and Sanofi, but even better for society.

Capital Calls: Nike, Stablecoins, Meme stocks

22 Mar 2023

Concise views on global finance: The Air Jordan maker grew quarterly revenue 14% despite inventory woes and China’s slow reopening; diverging demand for Circle and Tether cryptocurrencies raises questions about how investors are assessing risk; and GameStop’s shares surged 40%.

Bad news salvo gives Bank of Japan some cover

16 Mar 2023

The collapse of U.S. lender Silicon Valley Bank knocked down sovereign bond yields. Consumption remains soft, and while Japan Inc is hiking wages by 3% on average, that’s well below inflation. There’s nothing to cheer, but it takes pressure off the BOJ to adjust rates.

UK fiscal austerity may not survive next election

15 Mar 2023

Finance minister Jeremy Hunt used 24 bln pounds of budget headroom to boost investment and incentives to work. He also set a trap for the opposition: accept spending cuts after 2024 or be tagged as a high-tax party. Labour Party leader Keir Starmer doesn’t have to take the bait.

Starbucks’ union brouhaha risks Schultz’s legacy

14 Mar 2023

Employees have organized and U.S. courts found that the $115 bln latte maker broke labor laws. But operating costs may go up by just $23 mln, or 0.2%, as a result of the current unions. What’s more at risk is Howard Schultz’s legacy and the company’s worker-friendly reputation.

China’s equity watchdog gets backhanded promotion

8 Mar 2023

Beijing is elevating the China Securities Regulatory Commission in the bureaucratic hierarchy. It ought to be good news for an agency whose authority has been diluted in recent years. Yet the change sets staff up for a pay cut. More power with less money is a bad combination.

Britain can afford to pay nurses and teachers more

20 Jan 2023

UK public workers want a big raise from the government. An inflation-matching pay rise would cost 18 bln pounds; growing state employees’ salaries in line with the private sector around half that. Downing Street could fund it with a 1p rise in VAT and closing tax reliefs.