Carmakers rattled by Backseat-Driver-in-Chief 6 Jan 2017 President-elect Donald Trump's attacks on imports soured the mood ahead of next week's industry jamboree in Detroit. Scrapping a Mexico plant, as Ford did, is easy. Bigger upheavals could spell trouble, though, as a slowing market and autonomous driving jolt financial prospects.
Regional pain makes UK consumer credit risks real 6 Jan 2017 The BoE's chief economist says a merely moderate rise in housing finance means consumer borrowing risks are contained. But unemployment is up in Scotland and northern England, where faster-growing personal loans matter more. Banks' pricing competition could worsen the reckoning.
Brexit could derail UK’s anti-corruption push 6 Jan 2017 Britain's keenly awaited anti-graft strategy has been delayed. The UK had looked to be making headway in reducing the billions of pounds laundered through London. The risk is this gets lost in the rush to quit the EU - or even that UK shadiness is seen as worth clinging to.
It’s past time for Japan to tackle overwork 6 Jan 2017 A suicide at a top advertising firm shines an ugly spotlight on Japan's dangerously long hours. Relaxing a culture of workaholic conformity won't be easy. But official plans to curb overtime are a good start. And a better work-life balance would bring real economic dividends.
Viewsroom Predictions 2017: Part 2 5 Jan 2017 Breakingviews columnists offer their take on the year ahead: magic mushrooms could be an economic and investment hit, big business will take drones to the skies and Uber's IPO faces an uphill struggle. Plus: Harry Potter's 20th anniversary is a lesson in preparing for surprises.
Buyout firms find new sauce to sweeten returns 5 Jan 2017 Private equity managers are borrowing against their own stakes in companies on margin, according to bankers. The leverage helps spruce up their returns. But investors could also face new kinds of risks.
Le Pen’s post-euro pitch is naïve but beguiling 5 Jan 2017 Far-right presidential hopeful Marine Le Pen wants to reintroduce a national currency in France alongside the euro. Her plan would face huge obstacles and involve big risks. Yet the idea of a painless reversal of the single currency project may seduce voters in France and beyond.
Fidelity gets first dip in China fund shark tank 5 Jan 2017 Fidelity International is the first foreign asset manager allowed to create onshore funds and sell them to select mainland buyers. It enters a brutally competitive sector hobbled by capital account controls, and it can't sell to retail investors. This is still a strategic win.
Brazil, Mexico to ramp up pro-market oil makeovers 4 Jan 2017 State-controlled energy behemoths Petrobras and Pemex, which owe more than $220 bln between them and face falling crude output, need help doing their jobs. Mexico's auctions of exploration rights show a business-friendly way forward. Brazil will try to catch up in 2017.
Goldman scores inside straight with SEC chair pick 4 Jan 2017 Avowed swamp-drainer and President-elect Donald Trump named Jay Clayton, the ultimate Wall Street legal insider, to run the financial watchdog. At Sullivan & Cromwell, Clayton worked on bank rescues and bailouts, including Goldman's. Hope and change cede to plus ca change.
Privatizing Medicare would be bad elective surgery 4 Jan 2017 The federal program is a relatively solid part of the U.S. healthcare system. Republicans nevertheless want to revise it so the elderly buy subsidized insurance privately. That'd satisfy a smaller-government ideology, but at a price of greater inefficiency and worse coverage.
Breakingviews predicts a shaken-up world in 2017 3 Jan 2017 After the upheavals of 2016, governments, companies and investors face unfamiliar terrain. Once-unthinkable scenarios, good or bad, now seem possible. From the U.S. economy to European elections, from M&A to magic mushrooms, our financial insights offer a guide to the year ahead.
Euro zone revival carries sting in tail 4 Jan 2017 After years in the doldrums, increased business activity and slightly rising prices are good news for the single currency area. Besides, inflation is still a long way below the European Central Bank target. But a sustained pickup would expose the euro zone's two-speed recovery.
Trump stimulus will only delay next U.S. recession 3 Jan 2017 The president-elect inherits an economy that's in fairly good shape. His planned tax cuts and infrastructure spending will give growth an added short-term boost. Though that may postpone an overdue downturn, Trump is still likely to face a crunch before the next election.
Trump adds attack-dog bite to global-trade bark 3 Jan 2017 GM is the latest target of the president-elect's ire for outsourcing to Mexico. His pick for U.S. trade rep knows how to impose import restraints and tariffs. Robert Lighthizer's nomination heralds a more comprehensive assault on free trade than Trump's Twitter tirades.
Germany’s thriving job market no solace for Merkel 3 Jan 2017 Unemployment has fallen to its lowest since 1981, and the number of people in jobs is at a record. Chancellor Angela Merkel presided over this happy state but will struggle to leverage it in upcoming elections. Voters are more focused on less predictable flows of migrants.
Thruppence: Ten buzzwords to expect in 2017 3 Jan 2017 The dawn of a new populist era will bring even more corporate jargon and political euphemisms to the global lexicon. Think "import substitution" after trade barriers go up, or "fiscal space" as doublespeak for blowing through budgets. Breakingviews columnists place some bets.
Millennial princes snatch at power in Gulf 3 Jan 2017 Ageing monarchs may hand greater powers to a younger, more progressive generation in 2017. Falling oil revenues and ballooning budget deficits are forcing sheikhdoms to make overdue economic and social reforms or risk financial meltdown. Millennial thinking could help.
Exec pay is crying out for a race to the bottom 3 Jan 2017 Battles against corporate excesses are worthy but come unstuck all too quickly. Bosses keep getting paid more than their predecessors. To save capitalism, some could tender their services more cheaply. The tradition of the $1 CEO serves as a template. Even better: work for free.
Bank rate cuts are a key step in India’s recovery 3 Jan 2017 Admonished by Prime Minister Narendra Modi, banks are slashing lending rates up to 90 basis points. That is critical to kick-starting credit growth and thus the economy. But all the uncertainties created by a nationwide cash crunch mean it is too soon to cheer a revival.