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.
Airbus’ Brexit certainty drive is wishful thinking 22 Jun 2018 The nature of the planemaker’s business means that earmarked transition periods after a UK exit could be too short. But its call for clarity on future arrangements will fall on deaf ears. Even if UK politicians weren’t bungling the process and wanted to help, they can’t.
America Inc. may want to revise China growth plans 22 Jun 2018 Trade tensions might hit the U.S. stock market from another angle. A Communist Party tabloid just published an op-ed warning Beijing could target DJIA constituents such as Apple and Boeing. The scope of retaliation is limited by economics, but big expansion could be curbed.
Mongolian coal IPO may keep wandering 22 Jun 2018 The Central Asian nation revived plans to list its prize mine, seven years after it tried at a $15 bln valuation. Coal prices have rebounded from 2015 lows and Chinese demand is strong. With just one big customer and years of false starts, though, investors will need convincing.
Cox: Italy’s new Caesars have outdone Donald Trump 21 Jun 2018 The country’s newly elected bosses have quickly mimicked the U.S. president’s style by breaking conventions and proposing radical immigration, economic and trade policies. They’ve even gotten into spats with neighbours - and Canada. But making Rome great again will be harder.
Trade war tariffs eat Daimler’s homework 21 Jun 2018 The carmaker’s tariff-induced profit warning is odd, since Chinese duties would hit U.S. cars but not imports from elsewhere. Daimler’s statement could cover for poor performance, or make a political point about a trade war’s costs. Expect other companies to try the same.
Wilbur Ross proves bad behavior is new norm 20 Jun 2018 Lawmakers hammered the U.S. commerce secretary about the effect of tariffs – but barely mentioned his sale of a company’s shares days ahead of a negative news story. Congress, occupied with trade battles, is growing numb to shady conduct. Calling it out, though, matters.
Hadas: Irresponsible companies feed bad politics 20 Jun 2018 Two new studies show rising markups and major tax-shifting at successful corporations. Winner-take-most industries push up inequality, squeeze governments and ultimately drag down growth – all economic nutrients for populism. Cures are available, but prospects are not bright.
EU’s best bet is to indulge Trump on car tariffs 20 Jun 2018 Europe’s tit-for-tat response to U.S. metal duties risks a trade war that hits EU carmakers. Better to offer President Donald Trump the carrot of lower auto tariffs, which have little effect anyway. That could humour his trade antics, but cause less economic damage.
Air India sale could take off again 20 Jun 2018 New Delhi has shelved the disposal of the indebted national carrier after failing to attract bidders. It’s a bad time to push privatisation, with a general election looming. If Premier Narendra Modi wins the poll, though, the p-word could still be his big reform set piece.
Market swoon undercuts Chinese consumer tale 20 Jun 2018 Mainland stocks are at their lowest in a year, and bonds and the yuan have slumped as fears of a full-blown tariff war intensify. This economy relies less on exports than it used to do, but domestic demand isn’t immune to trade tension. The central bank’s jitters are justified.
DIY approach weakens Europe’s migration defences 19 Jun 2018 Fewer people are coming from Africa, but managing immigration is the EU’s main political issue. A unified push to screen refugees in third countries could help prevent a full-blown crisis. By contrast, piecemeal solutions in Germany and Italy would be costly and ineffective.
ZTE becomes an even cheaper stock option 19 Jun 2018 The sanctioned Chinese telecom giant’s Hong Kong shares tumbled 22 pct after the U.S. Senate passed a bill that would yank a lifeline tossed by President Donald Trump. Yet ZTE’s fate is not sealed. The political calculus may be tough to solve, but favours the brave investor.