Politics

Saudi turmoil is new twist on old C-suite dilemma

20 October 2018

The kingdom’s admission that Jamal Khashoggi died in its Istanbul consulate damages the crown prince’s ability to execute his Vision 2030 strategy. If Saudi were a company, its chairman would replace the CEO and continue with economic reforms. That possibility remains remote.

The Exchange: Stephen Harper

19 October 2018

Canada’s former prime minister, in office through the financial meltdown a decade ago, is an advocate for conservative politics with a small “c.” He talked to Breakingviews about the revamped NAFTA, Donald Trump’s standoff with China and the pros and cons of the loonie.

Facebook hires one weapon for two-handed fight

19 October 2018

Nick Clegg, former UK deputy PM, will lead global affairs at the $450 bln social network. His anti-Brexit stance and EU background could help with tribulations in Brussels. But he’s an odd choice to deal with Washington, where scrutiny may intensify after the midterm elections.

Viewsroom: Saudi fiasco sets Wall Street ablaze

18 October 2018

Bankers and officials have ditched a huge Saudi shindig after Turkey accused the kingdom of killing a prominent journalist – but big deal fees and oil reserves make the kingdom hard to shun. Breakingviews columnists discuss the financial ramifications of the diplomatic crisis.

Brexit impasse moves UK and EU closer to abyss

18 October 2018

With five months to go, Prime Minister Theresa May still can’t come up with a plan that satisfies the European Union and hard-line parliamentarians. To avoid a chaotic Brexit, at least one side must cave. That won’t happen until the disastrous alternative gets even closer.

U.S.-EU derivatives kumbaya could get canned

18 October 2018

The U.S. swaps regulator wants to increase global cooperation. But trade tensions, Iran sanctions and a long and painful history of overreach by the U.S. itself are reasons for Europe to say no. Even though both sides could benefit, attempts at playing nice could come to grief.

Japanese banks sit quietly pretty in Saudi saga

17 October 2018

Top U.S. and European bank bosses have pulled out of Riyadh’s investment conference. Japanese rivals MUFG and Mizuho are relatively insulated from the same culture of protest. If anything, it’s a chance to court favour in the kingdom and increase their share of Saudi’s fee wallet.

Oil makes Saudi Arabia slippery sanctions target

16 October 2018

U.S. lawmakers are invoking a law used to impose Russian sanctions to demand answers about a missing journalist. There’s momentum for a similar penalty for the kingdom. But Saudi retaliation could hike oil prices - the opposite of what President Trump has been agitating for.

Saudi fail is fresh win for U.S. banks over Europe

16 October 2018

The bosses of HSBC, Credit Suisse and StanChart are quitting Riyadh’s investment conference next week. Belatedly following JPMorgan CEO Jamie Dimon’s lead cements their pre-existing status as also-rans. French banks may yet go – but any pickup in business will be tainted.

There’s method in Saudi’s Man Utd soccer madness

15 October 2018

The kingdom’s crown prince may back a tilt at the UK soccer club, reports the Sun. It sounds barmy, and a convenient distraction from the international storm over a journalist’s disappearance. Yet Saudi backing for a new elite club tournament means it could make financial sense.

Wall Street shows Trump the way on Saudi Arabia

15 October 2018

BlackRock’s Larry Fink and Steve Schwarzman of Blackstone have joined other CEOs in skipping Riyadh’s “Davos in the Desert”. Private sector boycotts usually follow state sanctions. The U.S. government’s inaction reflects its reliance on Saudi Arabia, and fear of high oil prices.

Cox: Global finance has a Saudi Arabia problem

14 October 2018

Wall Street bosses and their European and Japanese peers are reconsidering next week’s “Davos in the Desert.” Like China, there’s money at stake. Unlike Russia there’s no guidance from above. A coordinated pullout following Jamie Dimon’s withdrawal is their least-bad option.

Review: Forget robots, capitalism is the future

12 October 2018

Ex-Fed boss Alan Greenspan and journalist Adrian Wooldridge have penned a fast-paced history of the good wrought by American entrepreneurs. But their solutions for today’s perceived stagnation – less welfare and fewer regulations – undervalue the adaptability of their subjects.

Saudi adviser panel may unwind faster than Trump’s

11 October 2018

A forum of foreign executives has seen departures amid rising political tensions, as a U.S. White House CEO council did last year. Cozying up to princes and presidents confers an air of virtue and status. When it looks like advice isn’t being heeded, it goes quickly into reverse.

Markets are finally getting back to basics

11 October 2018

A slump in stocks slowed on Thursday, partly thanks to tame U.S. inflation data. American equity valuations are high, trade tensions and interest rates are rising, and earnings season is under way. Six months of steady tech-led gains may be giving way to the facts on the ground.

Car parts could be China’s trade sledgehammer

10 October 2018

Beijing is running out of U.S. imports to tax but it has other ways to make things ugly. American carmakers depend on an uninterrupted flow of imported parts, and China is the No. 2 supplier. Any attempt to disrupt component shipments could throttle the likes of Ford and GM.

Macron’s bridges to investors bypass voters

9 October 2018

The French president has few problems enthusing businessmen and financiers, who think his reforms are just what the euro zone economy needs. But Gallic voters are less impressed. A cabinet reshuffle that is in the offing is unlikely to be enough to win them over.

Hong Kong’s political risk takes new form

9 October 2018

Leader Carrie Lam has made a good start tackling a housing crisis, and public sentiment is improving. With mass protests less likely, she may push for a controversial security law next. The business community appreciates stability, but eroding rule of law is a rising threat.

“Davos in the Desert 2” faces a sophomore slump

8 October 2018

The possibility that a Saudi journalist was killed in the kingdom’s Istanbul consulate will add to concerns foreigners harbored about attending the crown prince’s second confab in two weeks. Morality aside, the economics of going mostly appeal to bankers – and then just barely.

Hadas: Nobel rewards pointless economic modelling

8 October 2018

Paul Romer won half the 2018 prize for recognising that education and governments help growth. William Nordhaus won the other half for condemning man-made climate change. Obvious? Maybe, but their work has complex equations. Unfortunately, these obscure more than they clarify.