Trump gives his team too long a leash 5 Jul 2018 Scott Pruitt, who has resigned from the U.S. environmental watchdog, had the president’s support for months despite a rash of ethics scandals. His departure shows there are limits, but others facing questions, like commerce tsar Wilbur Ross, needn’t worry yet: the bar is high.
High oil prices are as American as apple pie 4 Jul 2018 President Trump’s sniping at OPEC seems to be led by concerns about spiraling petrol pump prices. But these aren’t high enough to stop drivers from hitting the road. And while the U.S. remains a net oil importer, surging domestic production will also help the economy.
WhatsApp hits limits of technology in India plight 4 Jul 2018 Just as the Facebook-owned messaging app pushes into payments in its biggest market, it has been warned by New Delhi about false information linked to mob killings. The service’s encryption means new code will be of little help. WhatsApp requires a different sort of innovation.
1MDB trial is just start of Malaysian war on graft 4 Jul 2018 Former Premier Najib Razak has been charged in connection with the $6 bln scandal. The swift action is commendable. Deeper change is needed to reassure investors, though. That means measures like forcing politicians to declare assets, and regulating party funding.
WTO pullout is self-fulfilling prophecy for Trump 3 Jul 2018 About 70 pct of cases filed this year at the world body target new U.S. tariffs. The White House also isn’t strongly pursuing disputes. Tilting America’s winning record to losses would bolster WTO rancor. Congress can stop a withdrawal but anti-trade rhetoric still resonates.
Italy picks wrong medicine for job market malaise 3 Jul 2018 Rome wants to clamp down on short-term work contracts by diluting past labour reforms. That might help job security but would be counterproductive in cutting unemployment. Tackling a skills gap and trimming employers’ costs would do more to boost the quality and quantity of jobs.
U.S. veto on China Mobile could grow wider 3 Jul 2018 The Trump administration wants to deny the $180 bln carrier’s longstanding bid to offer overseas calls from America. The financial impact will be negligible. But this could herald a broader U.S. campaign to weaken Beijing’s control over Chinese people and companies abroad.
Tech backlash grows in Silicon Valley’s back yard 2 Jul 2018 California will force internet companies like Google to give consumers more control over their information and stop it being sold to third parties. The law is narrow but the Golden State is often a litmus test for legislation that takes hold nationwide.
Fed lets Goldman, Morgan Stanley off lightly 29 Jun 2018 Neither firm can boost buybacks or dividends after their leverage ratio fell below the stress-test minimum. A one-time hit from last year’s tax changes caused it. But Amex, JPMorgan and others handled that smoothly. The two Wall Street banks are lucky the Fed didn’t flunk them.
Messianic AMLO may give Mexico what it least needs 29 Jun 2018 Presidential front-runner López Obrador has pledged to root out corruption and dampen drug violence while boosting the economy and lifting up the poor. That may win him Sunday’s election, but such goals require strong institutions and fiscal nous. His rise may bring the opposite.
EU immigration deal papers over two big problems 29 Jun 2018 A fudge on migration whipped up by leaders satisfies Italy’s new government and gives German Chancellor Angela Merkel something that may placate her Bavarian allies. But the former’s confrontational stance and the domestic weakness of the latter remain worrying fault lines.
Australia’s ban on Huawei would be a costly call 29 Jun 2018 Having passed a law on foreign meddling in its politics, Canberra now looks set to block the Chinese telecom giant from working on its next-generation mobile network. There are valid concerns. But a ban carries costs: pricier 5G, and worsening ties with its best export customer.
Cox: If GE can break up, so can the United States 28 Jun 2018 Over a century the industrial conglomerate became too unwieldy to manage, unaccountable to stakeholders and financially undisciplined. Sound familiar? What works for corporate America could be applied to the government of a divided country showing similar symptoms of distress.
American socialist, 28, discovers secret of 99 pct 27 Jun 2018 “We've got people, they've got money.” With that slogan Alexandria Ocasio-Cortez triumphed over a well-funded opponent in a New York primary election. The phrase captures the idea that clobbered 19th-century free-market liberalism. It may just master today’s privileged 1 percent.
Derivatives spat is bad omen for UK-EU regulation 27 Jun 2018 The Bank of England wants European authorities to provide assurance that contracts worth 100 trillion pounds will be valid after Brexit. The EU’s watchdog says banks must prepare for the worst. Playing politics with financial stability bodes ill for future regulatory cooperation.
Softer U.S. China plan is no comfort for investors 27 Jun 2018 President Donald Trump rationally chose to use national-security deal reviews to restrict Chinese investment. It’s a win for his Treasury secretary over trade hardliners. But the review body is opaque, mixed messages have confused markets, and Trump still wants auto tariffs.
China dims chances to shine in Asia’s cloud 27 Jun 2018 Demand is rising for remote data services across the region, including from proliferating startups. Chinese vendors such as Alibaba are best placed to challenge the likes of Amazon. Beijing's push for "internet sovereignty," though, may impede expansion, even by local champions.
Hadas: Turkish strongman overcomes mixed economics 26 Jun 2018 Tayyip Erdogan’s nationalist and religious appeal gave him victory in the presidential election. Economic factors played a lesser role. The mix is typical for “will of the people” rulers. They make financial promises, but their supporters care more about identity than money.
Turkey’s strongman gains mandate for bad policies 25 Jun 2018 Tayyip Erdogan and his AK Party emerged victorious from presidential and parliamentary elections. Enhanced powers may encourage the Turkish leader to implement inflationary stimulus and again challenge the central bank’s independence. Investors will be less forgiving than voters.
Guest view: Beware emerging market storm clouds 22 Jun 2018 A new period of mounting risks and uncertainties looms on the horizon for developing economies like Turkey, Malaysia, Brazil and Mexico, argues former Citibank executive William Rhodes. Rising price volatility and pressures on a range of currencies are merely the warning signs.