Hadas: Fear not, you can get economics right 12 Jul 2017 The dismal science struggles to explain such basic issues as persistent disinflation, lingering post-crisis trauma and rising inequality. Unsuitable methodology is the primary culprit. A new “Blackfriars School" can help by asking better questions about what’s really going on.
Britain learns how not to think about work 12 Jul 2017 A review of the UK “gig economy” suggests some jobs have conditions that make them little better than having no job at all. Others appeal much more than pay levels would suggest. Employment data does not capture the difference. Developing countries have known this for decades.
Temasek’s garage sale highlights capital dilemma 12 Jul 2017 The Singapore state investor sold more assets than it bought for the first time since 2009. The trend may continue with valuations high and stiff competition for assets from cash-rich private equity players. It will also make it hard to redeploy capital efficiently.
Holding: Judges owe investors principle, too 11 Jul 2017 The U.S. Supreme Court has been paying greater interest to securities-related cases. One against tech firm Cyan is the latest. Yet narrow and unpredictable rulings have confused shareholders about everything from insider trading to filing deadlines. Clearer standards are overdue.
Volcker Rule emblematic of new Fed pick’s challenge 11 Jul 2017 Randal Quarles is set to be the central bank’s first head of supervision, a key role in Trump’s deregulatory push. But even where political consensus exists, like revising parts of the prop-trading ban, change requires support from fellow watchdogs. That’ll slow the process.
Fickleness hampers French seduction of bankers 11 Jul 2017 Gallic politicians are scrapping taxes and tweaking labour laws in an attempt to lure London-based financiers to Paris after Brexit. Though the gifts are appealing, memories of past banker-bashing are fresh. Today’s charmers could be replaced by unfriendly characters tomorrow.
Regulatory hide-and-seek shows banks’ new reality 11 Jul 2017 Lenders are using tricks to get around capital and liquidity rules, says Britain’s chief banks supervisor. Introducing more complex rules has only added to the behaviour that contributed to the last crisis. The good news is that banks are stronger, and regulators less trusting.
Dubai is weakest link in anti-Qatar stand-off 11 Jul 2017 Keeping its doors open while neighbours kept theirs closed has been a winning strategy for the Middle Eastern trading enclave. The blockade of Qatar will leave a mark on Dubai’s vital real estate sector and trade flows – and could leave its investor-friendly reputation dented.
Manila packs a Duterte discount 11 Jul 2017 Equities have delivered poor returns during President Rodrigo Duterte's first year in office. Valuations are similar to regional peers, despite the Philippines' better fundamental growth prospects. Investors are struggling to see past a bloody war on drugs and militants.
Companies will have their day in Trump’s courts 10 Jul 2017 The White House travel ban and environmental rollbacks got blocked in court, but there are over 100 judicial vacancies for the famously litigious president to fill. Aging jurists could leave even more open seats. That may reshape upcoming battles in finance, tech and beyond.
Cool credit markets could be own undoing 10 Jul 2017 Corporate bonds shrugged off the recent “taper tantrum” that hit government debt and equities. Investors may be betting that central banks will only slowly tighten policy, supporting demand for riskier assets. Yet unruffled markets may only hasten policymakers’ rush for the exit.
Newspapers push wrong solution to online duopoly 10 Jul 2017 The Wall Street Journal and others want the right to bargain collectively with Facebook and Google. The titans’ dominance of the $83 bln U.S. digital ad market is a concern, but not just for print media. Combating it requires antitrust enforcement, not an industry carve-out.
GIC’s shrinking returns add to Singapore’s gloom 10 Jul 2017 The state fund delivered one of its worst performances since 2001. With geopolitical risks on the rise, the outlook is depressing too. Singapore's challenges investing overseas compound the mood at home as the city's first family feud in an ugly public squabble.
Healthy U.S. payrolls hide pain of working-age men 7 Jul 2017 Employers added a robust 222,000 positions in June while the jobless rate stayed low, at 4.4 pct. At the same time, opioid usage and extensive incarceration have kept many males in their prime years out of the workforce. Wiser policy decisions could help bring them back.
Bank of Japan can hold out as Western yields rise 7 Jul 2017 The central bank underlined its determination to keep 10-year yields close to zero by offering to buy unlimited bonds. The BOJ has the tools, market dominance and motivation to hold firm. Tighter policy in the West should help Japan by weakening the yen and importing inflation.
Viewsroom: How China changed Hong Kong 6 Jul 2017 It’s 20 years since the British handed the island and adjacent territory back to the mainland. Breakingviews’ Asia columnists explain how Hong Kong’s economy and society have changed and ask whether this once-dominant regional financial center can regain some of its lost luster.
White House freed for business conflicts as usual 6 Jul 2017 America's ethics chief is resigning after months of clashes with Donald Trump. Walter Shaub regularly called out the president's corporate holdings and rebuked his deputies for unseemly behavior. Without even official public shaming, U.S. esteem and influence may slip again.
Japan and EU find solace in Trump trade rejection 6 Jul 2017 Last year both were focused on negotiations with the United States. But the U.S. president’s protectionist stance prompted them to revive long-standing talks. Though the “political agreement” is far from complete, it’s a sign that trade liberalisation can still happen.
Blueprint for UK finance free trade has many holes 6 Jul 2017 Brexit need not mean an end to open markets in financial services, chief watchdog Andrew Bailey says. His pragmatic vision would, however, require Britain to accept future EU rules and legal oversight. Even if UK politicians agree, European ones have reasons to dissent.
Exchange Podcast: Bill Emmott 5 Jul 2017 The system of political and economic openness built after World War Two is under threat, Bill Emmott argues in his new book "The Fate of the West." He joins us to discuss globalization, populism and why there's still cause for optimism about the future of liberal democracies.