Politics

Trouble in Paradise highlights U.S. coal’s dilemma

15 February 2019

The Kentucky power plant is one of two being closed because the fuel is no longer economical. Struggling supplier Murray Energy, run by a big Trump supporter, reckons overseas markets are its salvation. But they are unlikely to come to the rescue of the American industry.

Trump wall non-deal requires scraping for funds

15 February 2019

Congress rejected the U.S. president’s border barrier demands so he declared a national emergency. If he defeats legal challenges, he may find $6.7 bln for the structure. Yet he turned down a compromise providing $25 bln in 2018. As with trade, the result looks far from artful.

Spain’s snap election could harden Catalan divide

15 February 2019

Socialist Prime Minister Pedro Sanchez called a vote after separatist parties refused to support his budget. A coalition including conservatives and far-right Vox could get more done. But the parties’ hard line on Catalan independence might cause tensions to flare again.

Nigeria challenger is lesser of two outmoded evils

15 February 2019

Voters in Africa’s most populous nation must choose between an ageing ex-military ruler and old-school political tycoon. Both are four times the country’s median age. Challenger Atiku Abubakar’s talk of relaxing the state’s economic grip at least has a whiff of the 21st century.

Khashoggi is ghost at Milken’s Abu Dhabi confab

15 February 2019

Financiers at the billionaire’s annual Gulf shindig adopted a Trumpian shrug over Saudi agents’ murder of the dissident journalist. Lucrative forthcoming Aramco deals and White House support for the regime explain why. But the issues raised by Khashoggi’s death still linger.

Viewsroom: Down Under’s upheaval

14 February 2019

Falling house prices and slowing Chinese growth are putting Australia’s record of almost 28 years of economic expansion at risk. The banking industry got dinged after a gripping year-long investigation. And a change of government looks likely. Breakingviews dives into the issues.

Amazon, NYC shoot selves and each other in foot

14 February 2019

Jeff Bezos’s company is ditching its Big Apple HQ plan after local opposition to the $3 bln in incentives it would receive. It makes Amazon look short-term greedy and uninterested in community concerns. Punchy politicians, meanwhile, have cost the city jobs and tax revenue.

EU risks picking wrong fight with foreign giants

13 February 2019

France and Germany want to help companies fend off Chinese and U.S. behemoths by merging. Yet Europe’s fragmented markets and limited state subsidies mean it will never win the size game. Better to double down on strict antitrust rules while blocking unfair foreign buyers.

Miners’ Congo optimism is post-Kabila sugar-rush

13 February 2019

Joseph Kabila’s exit as the African giant’s leader is generating some positive vibes. Reminders of Congo’s vast mineral potential are light relief for shareholders beaten down by government shenanigans. But they won’t help convince Kinshasa to treat the industry any better.

Cox: Consider the merits of a Starbucks presidency

12 February 2019

Howard Schultz has taken lots of grief for considering an independent bid for the White House. If anything, both political parties should be wooing him. The conscious capitalism he pursued at the $87 bln coffee giant offers a healthy model for American business and society.

India’s tech rules are taking on a Chinese quality

11 February 2019

New Delhi's plan to compel the likes of Facebook and Google to police their content threatens free speech. Coming after edicts that limit foreign e-commerce giants, there is a touch of the People's Republic that will worry global players relying on the subcontinent for growth.

Review: Howard Schultz, the author, is a winner

8 February 2019

The former Starbucks chief’s tough boyhood and corporate rise inspires in “From the Ground Up.” Workers helped by his policies are also stirring. But this message is oddly absent from his White House rollout. The candidate needs to harness his business success more effectively.

Franco-Italian diplomatic row may taint economics

7 February 2019

Paris recalled its ambassador in Rome to protest what it called baseless attacks. The fracas may hurt the countries’ ability to present a united front on revamping fiscal rules or bank reform. That would be a costly consequence of short-term electioneering before a European vote.

Derailed train M&A spells poor EU antitrust revamp

6 February 2019

Competition tsar Margrethe Vestager blocked Siemens and Alstom’s rail merger in defiance of Franco-German pressure. Paris and Berlin are agitating for rule changes and may back a replacement who will be more willing to create regional champions. That would be a mistake.

Italy’s new top watchdog fails market test

6 February 2019

The government has nominated eurosceptic economist Paolo Savona as head of the markets regulator, an apparent demotion from his current ministerial job. Consob’s structure and EU rules limit his room for manoeuvre. Even so, the weakened body deserves a more independent boss.

Stock buyback ban idea is topsy-turvy

5 February 2019

U.S. Senators Schumer and Sanders say repurchasing shares starves companies of investment and should be limited. Goldman Sachs ex-CEO Lloyd Blankfein suggests otherwise. The downsides of buybacks are different – as are the more lasting ways to achieve what the politicians want.

Siemens-Alstom is poor advert for EU champions

5 February 2019

German and French politicians are annoyed because the rail merger may be blocked. But their argument that the deal is needed to shield Europe from Chinese competition is flawed. The duo’s workers may also suffer. This is the wrong regional standard-bearer to promote.

Breakdown: How to fix Venezuela

4 February 2019

The oil-rich Latin American country resembles a failed state. It may need $80 billion in loans and investment if embattled President Maduro departs. At 2013 pumping levels and $50 a barrel, that’s two years’ output for state oil firm PDVSA. A U.S. invasion would be a mistake.

Nissan’s real Brexit problems have not yet started

4 February 2019

The Japanese carmaker’s U-turn on building sports utility vehicles in northeast England owes more to falling demand for diesel engines than Britain’s impending EU exit. Still, a no-deal Brexit would make it nearly impossible for Nissan to justify current levels of UK production.

Franc gives West Africa good reason to like France

4 February 2019

Italy’s 5-Star says Paris is fuelling unemployment and migration by backing the region’s single currency. It’s true the 74-year-old franc keeps the zone’s 150 mln people oddly close to their old master. But its longevity proves the merits of stable prices over cheaper exports.