Dublin faces fiendishly tough call on Apple appeal 2 Sep 2016 Ireland has a stark choice: take 13 bln euros from the tech giant in back tax and hurt its standing with multinationals, or keep its national business model intact. With Brexit looming, the safe choice is to appeal. But the country has more scope to annoy Apple than it did.
State spending revival would be good for growth 2 Sep 2016 As central banks struggle to boost economies, world leaders meeting at the G20 are once again looking to government-led investment. Ultra-low sovereign yields make borrowing to spend look a no-brainer. But even a small stimulus can face formidable political hurdles back at home.
Drugmakers get their $2.3 bln worth in Washington 1 Sep 2016 U.S. lawmakers are prodding Mylan about EpiPen in the latest probe into rising prescription prices. Dozens of legislative proposals to rein them in have stalled over the last decade. No industry spends more than pharma lobbying Congress. The investment now faces its biggest test.
Rousseff ouster gives Brazil impetus to grow 31 Aug 2016 The country's Senate has impeached the president. Her replacement Michel Temer may be able to use that to his advantage and push unpopular steps to cement recovery next year. But lawmakers who were keen to dump Rousseff may be less willing to back his austerity measures.
Apple’s tax spat could blight European banks 31 Aug 2016 The tech giant’s $14.5 bln EU tax bill has shades of a $9 bln U.S. fine handed to BNP Paribas in 2014. Despite big differences, both have the whiff of a transatlantic raid on those deemed able to pay. EU banks awaiting U.S. fines, like Deutsche Bank and RBS, have cause to fret.
Libya is the fly in OPEC’s ointment 31 Aug 2016 Whether the cartel can push up oil prices depends on Tripoli. Libya’s production is small but unpredictable. Include the war-torn country in any output cap, and other OPEC members may end up forced to produce less. Ignore it, and efforts to rein in production could be wasted.
Argentina’s Macri loses skirmishes but winning war 30 Aug 2016 The president's big-bang approach to fixing the economy after years of state largesse has yet to pay off. A court has even blocked home-heating bill hikes. But Macri is learning no battle plan survives contact with the enemy. A more measured strategy will bring results in 2017.
Exiting French economy minister is odd insurgent 30 Aug 2016 Leaving the government frees Emmanuel Macron to speak out before the 2017 presidential elections. The former banker’s most radical quality is mixing policies and ideas from both left and right. That makes him less dangerous, and more likely to be absorbed by established parties.
TPP push could use a cattle drive 30 Aug 2016 The Obama administration's wobbly attempts to promote the trade deal are stalling. The nation's ranchers, meanwhile, have cooked up a juicy pitch highlighting the simple financial benefits of the pact. That's a far superior way to gather Americans around the same table.
Europe’s bite at Apple could leave bad aftertaste 30 Aug 2016 The European Commission wants companies to pay their fair share of tax. Zeroing in on Apple’s alleged sweetheart deal with Ireland fits that agenda. But it could misfire. Reeling from Brexit, Dublin might feel pressure to make itself even more friendly to corporate taxpayers.
Warsaw charm offensive shows London’s strengths 30 Aug 2016 Poland hopes to woo investment banks from the UK to its capital city. Credit Suisse, Goldman and BNP Paribas each have 300 or more staff in-country. But most are IT support, not revenue creators. The point is that financial hubs are built on far more than low costs.
Mexico can build on its Enrique Ford moment 29 Aug 2016 An improving economy already has helped reverse a migration tide Donald Trump wants to stop with a wall. Higher factory wages - à la Henry Ford's wisdom - are boosting car sales at home and enlarging the middle class. That also benefits the United States in ways worth fostering.
Review: Taking the woe out of scarce H2O 26 Aug 2016 Drought and rising global water needs often seem intractable sources of tension. John Fleck's "Water is for Fighting Over" uses cooperation over the much-contested Colorado River to challenge such assumptions. It offers hope for water's role in sustainable economic development.
Yellen defends Fed tools but is wary of using them 26 Aug 2016 The U.S. central bank chief stood up for techniques like asset purchases, amid political attacks on the Fed's powers. But keeping lawmakers on side could constrain Yellen's choices. One example is her apparent reluctance to raise interest rates despite a strengthening case.
Chancellor: Zero-coupon bonds are not a joke 26 Aug 2016 On April Fools' 10 years ago Breakingviews suggested Washington fund itself with perpetual bonds paying no interest. The idea is now being seriously touted by some monetary policymakers. For households with cash and other assets that would evaporate, this is no laughing matter.
Burkinis oust economics in French identity tussle 26 Aug 2016 A ferocious debate over bans on full-body swimwear sounds like pre-election posturing, but is more than that. France is less and less able to hang its identity on a unique economic and social model. As a result, the battleground is shifting to its deep-seated secular tradition.
EU offers vitamin pill to dying media patient 26 Aug 2016 Brussels wants to give media the right to seek compensation from search engines like Google that use online content. The intention is laudable - some publishers may be losing out. But the proposal has similarities with schemes in Germany and Spain - which haven’t worked.
Detractors give central bankers too much credit 26 Aug 2016 Federal Reserve Chair Janet Yellen and other rate-setters stand accused of pursuing policies that only help the rich. Yet the supposed beneficiaries complain that loose money depresses returns and distorts markets. Both sides overestimate central banks’ control over the economy.
New planet may help Silicon Valley live its cliché 25 Aug 2016 Proxima b, the just-spotted Earth-like body in the star system nearest the sun, could be reached in 20 years by a super-fast spacecraft being financed by tech titan Yuri Milner. Making our world a better place is a startup bromide. Visiting another would deliver on the promise.
U.S. labor unions look increasingly white collar 25 Aug 2016 A ruling that lets Ivy League graduate students organize will add to the growing share of cubicle-dwellers in the union movement. Education is one of the few sectors in which membership is increasing, albeit from a low base. The blue-collar stereotype is slowly fading away.