One-two punch barely fazes Uncle Sam 2 Aug 2023 Donald Trump became the first US president to face two federal indictments while Fitch yanked the country’s AAA status. Washington is more volatile than it has been in decades. Yet a resilient economy and the world’s reserve currency make it hard to bet against the United States.
Republicans struggle to diverge from Bidenomics 1 Aug 2023 White House hopefuls such as Ron DeSantis are decrying the president’s record, which includes adding 13 mln jobs. Their agendas also prioritize US factories and energy independence, areas already allocated some $480 bln. It will take more creativity to break from existing policy.
The BRICS are better off disbanding than expanding 31 Jul 2023 Developing countries are understandably unhappy that rich nations don’t address their needs. But they won’t get much from a club including giant China and near-pariah Russia. Brazil, India and other emerging economies might achieve more by creating a new group, says Hugo Dixon.
Big Tech super-regulator would be a super-dud 27 Jul 2023 Two big-name senators – a Democrat and a Republican – want a new agency to police tech firms. The highly polarizing consumer watchdog shows why that's a bad idea. A better one: pass laws to update regulators that exist already. Big Tech remains Congress’s responsibility to shirk.
Government’s NatWest meddling crosses risky line 26 Jul 2023 The UK bank ditched CEO Alison Rose hours after backing her, amid pressure from its 39% state shareholder. It’s right for Rose to go. But voters may now wonder why politicians can’t also intervene in setting mortgage rates, and NatWest may find it hard to find a top replacement.
China’s stimulus tone hits a high pitch 25 Jul 2023 Party leaders are finally admitting they need to do more to support the $18 trln economy and its real estate market. Some fiscal tweaks and measures to speed home sales in big cities may follow. But in raising expectations, what Beijing considers a new normal remains a mystery.
Saudi Mbappé bid even less rational than it looks 25 Jul 2023 State-owned Al Hilal offered $1.1 bln in fees and pay for soccer star Kylian Mbappé, reports say. Spain’s LaLiga gets less in international broadcast revenue a year. Saudi’s nascent league would gain, but the data doesn’t suggest either it or “sportswashing” overall will work.
Egypt’s food tightrope has petrodollar safety net 24 Jul 2023 The collapse of the Russia-Ukraine grain deal is a big problem for the world’s top importer of wheat. Egypt’s battered economy will struggle as food prices spike. A $400 mln lifeline from the UAE, flush with oil cash, is one of leader Abdel Fattah al-Sisi’s few crumbs of comfort.
Capital Calls: Chevron 24 Jul 2023 Concise views on global finance: The $300 bln oil giant’s second-quarter profit was cut nearly in half as production rose slightly. It reflects lower prices but there also are signs the industry has learned how to make itself more durable.
NatWest goof is a boon for sketchy bank clients 21 Jul 2023 The UK lender’s CEO apologised to right-wing talking head Nigel Farage amid an account-closure row. Britain will now force banks to respect freedom of expression. Yet that may make it harder to ditch other, more problematic clients – and weaken the fight against money laundering.
Spain’s next PM will have to fix economy pronto 21 Jul 2023 Left-wing incumbent Pedro Sánchez trails his conservative rival ahead of Sunday’s poll. Whoever forms a government will need to move fast. Robust growth – and 161 bln euros in EU funds – offer an opportunity to tackle joblessness, low investment and loose public finances.
Biden has too much confidence in Bidenomics 20 Jul 2023 The president’s new slogan parades a revival of US manufacturing and jobs. Spreading the word now, however, could backfire. Sticky inflation and slower hiring are out of Biden’s control, and they could leave voters poorer or jobless by the time they reach the ballot box.
UK is in danger of becoming the Nigeria of wind 20 Jul 2023 Ex-PM Boris Johnson wanted Britain to be for green energy what Saudi Arabia is for oil. Yet Vattenfall is halting a key offshore wind scheme, and it’s not clear if the UK will let developers hike prices to offset soaring costs. The more apt OPEC comparison is output-hit Nigeria.
Singapore’s clean reputation gets a timely test 18 Jul 2023 Officials arrested a cabinet minister and a prominent hotel tycoon without saying why. Corruption cases are rare in Singapore. But as the hub becomes a favourite destination for the rich, the investigation is a useful opportunity to burnish its reputation for tough enforcement.
China risks leaving it too late to stimulate 17 Jul 2023 The world’s second-largest economy grew a slower-than-expected 6.3% in the second quarter. Yet despite weakness in property and consumption, there are pockets of strength. Hitting the 2023 growth target looks less certain and a sharper slowdown could yet catch Beijing off guard.
Old Cold War tool could help in new era of tension 17 Jul 2023 The US and allies created a committee to vet exports to the Soviet Union during their long conflict. This gave its partners a say in setting policy and ensured they stayed aligned. The G7 should set up something similar to handle the quasi-Cold War with China, says Hugo Dixon.
Saudi golf shot plays through CFIUS hazards 14 Jul 2023 US lawmakers grilled PGA bosses about the deal they struck with the kingdom’s rival upstart. AT&T’s former CEO also quit a board in protest. Despite the concerns, Riyadh already owns stakes in EV-maker Lucid, video-game maker Scopely and more. Its soft-power game is strong.
Germany’s China policy caps pain for its companies 14 Jul 2023 Europe’s biggest economy has a new strategy to limit exposure to China and align more with Brussels and Washington. Yet a previous version of the plan was tougher. Big China-focused corporates like BASF and Volkswagen will be relieved they can de-risk at their own pace.
Thames Water’s leaky financials are far from fixed 13 Jul 2023 The privately owned UK water company managed to cobble together a rescue from existing shareholders. But in this Viewsroom podcast, Breakingviews columnists discuss why the fresh funds may not be enough, and the threat of nationalisation hangs over the sector as a whole.
The US government needs a real estate rethink 11 Jul 2023 A proposal floating around the Senate suggests the government could solve a housing shortage by building on federal land. That's a stretch. But Uncle Sam's real estate investments are some of the worst in America, and being concentrated in one expensive city is a risk.