Hillary Clinton’s 1 pct dilemma gets more awkward 26 Jul 2016 Progressive Senators Sanders and Warren kicked off the Democratic convention blasting the rich. With inequality atop the party platform, they expect Clinton to rein in millionaires. They are her biggest donors, however, meaning she'll be forced to ignore them at her coronation.
UK slaps capitalism in its “unacceptable” face 25 Jul 2016 Lawmakers angry at retailer BHS's collapse are mulling further regulation to protect jobs and pensions. The fiasco epitomises what Prime Minister Theresa May decries as "anything goes" business. It takes UK corporate life into interesting - and potentially painful - moral areas.
Carlyle’s dentist bond is full of cavities 25 Jul 2016 The private equity firm's bond for a British dentist chain sets new precedent in loose debt covenants. The UK vote to leave the EU has not tamed investors' animal spirits. With central banks promising ever looser policy, it's easy for issuers to extract generous terms.
Clinton and Kaine become globalization’s defenders 22 Jul 2016 The Democratic presidential candidate selected Virginia Senator Tim Kaine as her running mate. The former governor is a moderate who backed trade deals in the past. Their first task will be to win over liberals who supported Bernie Sanders and are being courted by Donald Trump.
Chancellor: Inequality breeds outbreak of populism 23 Jul 2016 The rich have enjoyed most of the fruits of globalisation, just as they did in 19th-century America. Unless politicians can enact benign policies to rectify the widening gap between the have-somes and have-lots, more unpleasant alternatives will loom on the horizon.
Review: Trump foretold his own grander artifice 22 Jul 2016 Despite recent misgivings by its ghostwriter, "Art of the Deal" is a useful volume to revisit as the Republican convention points to the November election. The blustery façade even in 1987 masked a dearth of substance. Potemkin showmanship was, and is, Trump's greatest skill.
Portugal’s three bad B’s: banks, budget, Brexit 22 Jul 2016 Lisbon’s banks are saddled with bad loans, and need capital. The government is caught between Brussels’ fiscal rules and a weak coalition. And the UK vote to leave the EU may hurt already grim growth. The three B’s may imperil Portugal’s BBB rating, and blow up its bond yields.
Republican donors reach for yield beyond Trump 21 Jul 2016 Wealthy hedge-fund bosses like Paul Singer and other Wall Street financiers wasted millions betting on candidates who lost to the real-estate mogul. Rather than back the GOP nominee, they're giving to congressional races instead. The risk-adjusted return could be higher.
Oil rebound poses new challenges for U.S. shale 21 Jul 2016 Crude prices have recovered 70 pct since February, and oil-services giant Halliburton expects drilling activity to pick up. Shale producers will face rising costs as output improves. They also need to tend to stretched balance sheets. It won't be a smooth ride up from the bottom.
Trump’s environment scorn affronts business sense 20 Jul 2016 The U.S. presidential nominee says he'd protect jobs by ditching the Paris climate accord, nixing energy regulations and favoring farmers over fish in California's non-existent drought. Such jibes neglect both the facts and the likely economic benefits of battling climate change.
Republicans find Hillary easier mark than economy 20 Jul 2016 The GOP convention day devoted to jobs was spent bashing the Democratic rival instead. Low unemployment makes important caveats harder to knock. America is also in a healthy state relative to the world. Voters prefer Trump on economic matters but he is struggling on substance.
Wall Street whiplashed by Republican hypocrisy 19 Jul 2016 A push to return to the Depression-era law separating commercial banking from trading made the party platform in Cleveland. Meanwhile, an effort to dismantle Dodd-Frank is being led by a disciple of the senator who ended Glass-Steagall. Bankers are left to just shake their heads.
Corporate GOP convention snub boosts Trump appeal 18 Jul 2016 The dearth of company sponsors at the Republican bash reflects unease with the White House hopeful's stance on issues like trade. Businesses usually provide support for the nomination party. Ironically, their absence may serve to enhance the real-estate mogul's outsider image.
Turkey will pay high price for political stability 18 Jul 2016 President Tayyip Erdogan is reasserting control after seeing off a military coup. He offers stability of sorts, which explains why Turkish assets pared knee-jerk losses. But his crackdown also engenders uncertainty, which investors loathe. Luring foreign money will be harder.
Trump VP pick Pence provides some needed balance 15 Jul 2016 The White House hopeful chose Indiana Governor Mike Pence as his running mate. He has the right kind of right-wing résumé, with views in support of free trade and against a Muslim visitor ban. The No. 2 could help by persuading his boss that nativist policies harm the economy.
State gets all the credit for China’s so-so growth 15 Jul 2016 GDP expanded by an unsurprisingly steady 6.7 pct in the second quarter. State firms drove most of the increase, helped by an unsustainable boom in bank lending. Investment by private companies, which generate most jobs, crept up just 2.8 pct in the first half, a record low.
Assembling economic dream team is more than a game 14 Jul 2016 Hillary Clinton and Donald Trump soon will unveil detailed economic plans as party officials gather at upcoming conventions. To help them draft a team of advisers, Breakingviews blends the fun of fantasy sports with the real consequences of policy in a new interactive graphic.
Venezuela crushed by Maduro’s survival calculus 13 Jul 2016 The Andean country's leader is squeezing imports to hoard dollars for debt payment. Ordinary folk are paying the price. A recall referendum he'd probably lose offers more hope than disorderly change. It'll take higher oil prices or electoral shenanigans to keep him in power.
Cairn spells out cost of India’s “tax terrorism” 13 Jul 2016 The UK energy group has asked an international arbitration panel for at least $1 bln in compensation from New Delhi. That is the potential cost of Narendra Modi's failure to end retrospective tax claims. It would have been cheaper for the prime minister to honour his pledge.
Prognosis is good for China’s healthcare market 13 Jul 2016 Drugmaker and pharmacist CR Pharma is targeting a $1 bln-plus Hong Kong flotation. Healthcare offers investors an antidote to the slow growth that plagues much of China's old economy, since a richer, older country will need more and more drugs. Expect other big deals to follow.