Politics

Capital Calls: CPPIB, Barclays, McPlant, DoorDash

26 February 2021

Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.

EU chip factory fantasy puts cart before horse

26 February 2021

Commissioner Thierry Breton wants an advanced semiconductor plant to cut reliance on Asia. The problem is that Europe’s chip designers and carmakers are ill-equipped to use such a cutting-edge site. Getting them on side, and investing more in research, is the place to start.

Guest view: 2021 is tipping point to hit net zero

25 February 2021

Economic crises often see innovation budgets cut. With energy efficiency trends worsening governments must hold the line, urge IRENA’s Francesco La Camera and the IEA’s Fatih Birol. A big chunk of decarbonisation will come from technologies that are still at the prototype phase.

HSBC’s renewed Asia focus goes only so far

23 February 2021

Boss Noel Quinn is aiming for more savings and an extra $6 bln of investment in the faster-growing region. Even if all goes to plan, it will remain a high-cost, low-return bank with global sprawl. More radical steps, like spinning off the UK business, would alter the equation.

Saudi’s HQ edict puts global banks in awkward spot

23 February 2021

The kingdom has ruffled feathers with plans to withhold state contracts from groups that don’t base their Middle East headquarters in Riyadh. The rule may not apply to all sectors. Even so, bankers face a tricky call over whether to up sticks or risk angering a valuable client.

Turf war puts Chinese regional GDP plans at risk

23 February 2021

China may skip setting a national growth target for a second year. But provinces have set their own, suggesting an expansion of at least 6.8% in aggregate. The central bank doesn't want to ease, while the finance ministry is reluctant to spend. It's quite the trilemma.

The Exchange: Tobias Harris

23 February 2021

The biographer of former Japanese Prime Minister Shinzo Abe speaks with Pete Sweeney about the country’s struggles. Harris argues Abe’s successor Yoshihide Suga could push harder on clean energy and economic reform. And if the Olympics get cancelled, most Japanese won’t mind.

Fed musical chairs takes away Wall Street’s seat

22 February 2021

Chair Jay Powell’s views on jobs make it easy for President Biden to rehire him when his term ends. The same isn’t true of the Fed’s top cop, Randal Quarles. His exit would make space for a more progressive candidate, potentially saddling banks with sterner capital requirements.

UK online levy procrastination may be helpful

22 February 2021

Finance minister Rishi Sunak has delayed a decision on whether to impose a 2% sales tax on internet retailers like Amazon. He misses out on some tax revenue in the short term but buys time for joined-up thinking on how to level the playing field for firms that pay property tax.

Putin has the cash to ease one driver of protests

22 February 2021

Anger at the Kremlin is about falling living standards as well as Alexei Navalny. Fiscal rules have complicated efforts to help the poorest Russians. But higher oil prices make it easier to placate those opposition supporters whose gripes are economic rather than political.

Hong Kong’s fate hangs on demographic fallacy

19 February 2021

The city’s population shrank last year for only the second time since the 1997 handover. Yet leader Carrie Lam is pushing young workers to seek jobs across the border. Her administration expects mainland Chinese immigrants will fill the gap emigrants leave. It’s a flawed thesis.

Facebook and Google flaunt dominance Down Under

18 February 2021

The social network blocked news in Australia in defiance of Canberra’s effort to make it pay publishers. The search titan’s deals with Rupert Murdoch’s empire and others may protect it from wider oversight. Government and media have only chipped off fragments of Big Tech’s clout.

EU support is mixed blessing for Mario Draghi

17 February 2021

Italy’s prime minister laid out an ambitious overhaul of the public sector and judiciary to help the euro zone economy to grow out of its debt. Europe’s $250 bln of recovery funding will help. Central bank bond-buying, however, means there’s less urgency for change.

Capital Calls: Tribune, Shopify

17 February 2021

Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.

South Korea leans into wrong sort of socialism

17 February 2021

President Moon Jae-in is exploring a plan to encourage corporate titans such as Samsung to share pandemic profit with struggling peers. A crisis that includes soaring unemployment is a good time for bold policy. Shoring up public safety nets would be a better long-term fix.

The Exchange: Editorial lessons from Lionel Barber

16 February 2021

The former Financial Times editor discusses his views on journalism in the post-Trump, post-Brexit, post-print era with Rob Cox. He also shares some of the juicier stories from his memoir, “The Powerful and the Damned,” like the time he told off Blackstone’s Steve Schwarzman.

Draghi cabinet full of Super Marios in disguise

12 February 2021

Italy’s next premier pulled together a dream team of executives and party bigwigs to see the country through the pandemic. The choices are almost irrelevant. Mr. Whatever It Takes will use his personal clout to shape a reform agenda and put 209 bln euros of funds to good use.

Draghi can finish old Italian bank job

10 February 2021

As Bank of Italy chief, Mario Draghi oversaw a bank merger wave that left Monte dei Paschi overstretched. As Italy’s next premier, he will get to decide the bailed-out lender’s fate. Selling it to a rival won’t come cheap but should spare taxpayers an even bigger bill in future.

Europe’s chip M&A invaders merit partial knockback

9 February 2021

Germany and Britain must decide whether to allow foreign takeovers of $6 bln Dialog Semiconductor, $5 bln Siltronic and $40 bln Arm. The risk lies in yielding control of scarce, technologically critical assets. In that respect, only the latter two deals are worth blocking.

The Exchange: Economic roots of Russia’s protests

9 February 2021

Police cracked down on mass demonstrations in support of Kremlin critic Alexei Navalny after his alleged poisoning and arrest. Exiled economist Sergei Guriev explains how lower real incomes, corruption and YouTube drove people to the streets – and what could happen next.