Politics

PBOC’s Zhou seeks lasting sway with debt warning

19 October 2017

The central bank governor is suddenly ramping up calls for reform and warning of a possible “Minsky moment.” With the 19th Party Congress in full swing, the soon-to-depart 69-year-old no doubt hopes to burnish his legacy, and ensure a like-minded successor fills his shoes.

Taylor-led Fed would be dangerous in manifold ways

19 October 2017

In addition to the Stanford economist's dogmatic bent for a programmatic monetary policy, John Taylor backs bigger regulatory changes than others in the running to be the next U.S. central bank chief. His laissez-faire ideas about policing Wall Street are loaded with risk.

New U.S. approach can better rein in drone dangers

19 October 2017

The FAA will share oversight of the vehicles with state authorities under a promising test project. Conflicting federal and local rules have caused confusion, with courts adding to the uncertainty. Combining forces can help regulators contain risks in increasingly crowded skies.

Hadas: Time to slay the free market-myth monster

19 October 2017

The oft-told story of vibrant private companies as economic heroes isn’t right, and the common tale of the incompetent state is equally wrong. A new group at University College London can help create a more accurate – and more complex – narrative. The economy is a shared project.

China’s leaders make peace with its old economy

19 October 2017

Output grew 6.8 pct in the third quarter, helped by higher debt, exports and property prices. For all the talk of innovation and deleveraging, the factors driving growth haven't changed. Nor do a few startups signal transformation. For better or worse, Beijing is okay with that.

Taj Mahal spat is a towering political folly

19 October 2017

A ruling party lawmaker says "traitors" built the landmark. An official sightseeing booklet omitted it. Yet tourism is one of the best ways to create jobs in India. Playing religious politics with a top visitor attraction is a disservice to Premier Modi's development mantra.

Sexual harassment forces way into the board room

18 October 2017

Harvey Weinstein’s movie studio is in tatters. Mighty Amazon is wrestling with the fallout from alleged misbehavior of a top executive. They're not alone. The mistreatment of women has swiftly moved from an HR issue to a serious business risk deserving of attention from the top.

U.S. tax outlook opens M&A pricing divide

18 October 2017

Republicans want to cut the corporate rate to 20 pct, but the timing is as uncertain as the outcome. Theoretically, profit – and thereby valuations – could get a 23 pct boost from lower taxes. Sellers want that priced in, but buyers won’t. All-stock deals could be one answer.

Indonesia’s slowdown belies Jakarta’s reform spin

18 October 2017

Eight interest-rate cuts by Indonesia’s central bank since January 2016 are getting little traction with investors or consumers. As growth slows, the urgency is rising for President Joko Widodo to accelerate infrastructure projects, attack corruption and create well paid jobs.

Viewsroom: President Xi Jinping’s moment

17 October 2017

The Chinese Communist Party’s 19th National Congress kicks off this week. Delegates at the week-long confab will select new leaders, including for key financial and economic posts. But the spotlight will be on Xi and whether he can consolidate his power and extend his reign.

Breakdown: Narendra Modi’s not-so-bright spot

17 October 2017

The premier has called India’s sharp economic slowdown temporary but must be worried about a prolonged slump as state elections approach. Investors are more sanguine. Breakingviews explains how things went wrong, what is at stake, and why India might wait out the pain.

Cox: Next Fed chair will need unusually thick skin

16 October 2017

The debate over who will lead the central bank is narrowly about hawks and doves. Policy matters, but the broader economic benefits of the Fed’s relative independence may count for more. Whoever gets the job will have to resist Trump's bullying – and stop doing Congress's job.

Venezuela votes make default tightrope trickier

16 October 2017

Regional elections brought President Nicolas Maduro's candidates surprising success, defying polls and economic meltdown. If opposition complaints of fraud are believed in Washington and Brussels, more sanctions may follow. That will make creditors even harder to keep at bay.

China is third-best option for Saudi Aramco

16 October 2017

With its $2 trln public offering in the balance, the Saudi oil giant may bring in a Chinese investor. That would provide cash the state doesn’t urgently need. The other perks of an international IPO, like regional influence and financial discipline, aren’t to be found in Beijing.

Europe poorly placed for Austria’s rightward drift

16 October 2017

The far-right Freedom Party scored well in the country’s election and may enter government. It has been in power before. However, its presence could make Europe’s immigration problem harder to manage, and further integration harder to agree. Centrifugal forces have not gone away.

Communist Party assault muddles Chinese capitalism

12 October 2017

The government hopes to regain the private sector's confidence even as it tightens its grip, in particular on the critical tech sector. Alignment with state priorities could ease red tape, but bureaucrats make lousy CEOs, and vicious factional politics will distract executives.

Effort to kill Obamacare may only make it stronger

12 October 2017

After failing to coax Congress to repeal the plan, President Trump now wants U.S. agencies to find ways to offer cheaper options with less protection. It subverts his predecessor's signature policy in the short term, but increases the odds that in time government programs expand.

Exchange Podcast: Luke Bronin

12 October 2017

Hartford is one of America's poorest cities in one of its richest states. And it's about to get worse for Connecticut's capital as Mayor Luke Bronin wrestles with a fiscal crisis that's likely to end in a bankruptcy filing. Rob Cox dropped in to hear his vision for reviving Hartford.

Sky investors choose between profit and principles

12 October 2017

Chairman James Murdoch faces a backlash over concerns about his independence as Twenty-First Century Fox, which he runs, tries to buy the UK pay-TV group. Shareholders have legitimate corporate-governance grievances. But financially they’d be better off with Murdoch’s money.

Italy’s new voting law gives illusion of stability

12 October 2017

Parliament is vetting new voting rules ahead of next year’s ballot. The system may encourage a coalition of left and right parties, and hurt the radical 5-Star Movement. Yet ideological strife is likely to weaken any future government, and the chance of meaningful reforms.