UK growth plan aims pea-shooter at monster problem 11 Jul 2023 Finance minister Jeremy Hunt wants Britain’s $2.5 trln pension system to invest more in private equity and startups. His scheme avoids the risky idea of forcing managers into buying British assets. But it’s too fuzzy and timorous to solve the country’s dismal lack of investment.
How to crack the climate free rider problem 10 Jul 2023 One reason countries fiddle while the world burns is that they bear the costs of action while everyone benefits. Creating a “climate club” would incentivise nations to pull their weight. But a lot of geopolitical stars first need to align, says Hugo Dixon.
Disney Vegas would have a nice ring to it 7 Jul 2023 The $162 bln media company’s boss Bob Iger is feuding with Florida's governor despite having committed $17 bln investment to the state. Disney could send a message by taking portions of that to Sin City, which is becoming family-friendly and may welcome the income boost.
Czech sphinx’s Casino bet trumps French insiders 5 Jul 2023 The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.
UK’s leaky water model faces a growing storm 5 Jul 2023 Thames Water’s financial strife has put privately held UK utilities under the spotlight. The sector’s huge investment needs mean bills have to rise yet further. Politicians are likely to ramp up their scrutiny of shareholder returns, and the model of private ownership itself.
China’s rare metals swipe has more bark than bite 4 Jul 2023 Beijing is imposing export controls over gallium and germanium, used in chips, fibre optics and military equipment. This confirms Western fears that the country might leverage its strategic metals dominance to push back on sanctions. Yet market realities blunt China’s edge.
Ukraine can rebuild without a Russian asset grab 30 Jun 2023 Using Moscow’s frozen assets to fund Kyiv’s $400 bln-plus recovery risks violating the rule of law. Suing Russian entities for the damages brought by the war is more promising. It allows Ukraine to build up claims that would be part of future peace talks.
Capital Calls: KKR’s reluctant bidding war 30 Jun 2023 Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.
Resetting student loans brings Econ 101 lessons 30 Jun 2023 Some 43 mln college grads may feel less confident financially with the Supreme Court striking down President Joe Biden’s debt forgiveness plan. Big chunks of income are no longer freed up. Payments also start anew soon after a Covid hiatus, adding another drag for many consumers.
UK water meltdown resurrects bank crisis dilemmas 29 Jun 2023 The government may take over indebted 18 bln pound utility Thames Water. Funding a big potential capital hole via bills and taxpayer cash injections could be as politically toxic as 2008-era bailouts of RBS and peers. But imposing losses on creditors may spark even more turmoil.
Putin’s problems are only minor boost for Ukraine 29 Jun 2023 The Russian president restored a semblance of calm in Moscow after an aborted mutiny. In this Viewsroom podcast, Breakingviews columnists debate what this means for the country’s invasion of its neighbour. It’s helpful, but not necessarily transformative, for Kyiv’s resistance.
Capital Calls: Digital euro, Thames Water 28 Jun 2023 Concise views on global finance: Brussels is in a new push to convince EU member states and the European Parliament to endorse a digital euro; Britain’s Thames Water could be placed into special administration.
UK banks are appropriate airbag for mortgage crash 27 Jun 2023 British politicians are starting to call out lenders that have delayed passing on higher rates to savers, even as they charge borrowers more. Bank share valuations already implied such windfalls might be temporary. The sector’s rising margins justify some political arm-twisting.
Why backing prevention can yield better health 27 Jun 2023 Treating illnesses like cancer consumes 11% of global GDP, according to the World Health Organization. In this Exchange podcast, Dr. Katie Tryon, director of healthcare strategy at Vitality, explains that overburdened care systems need to spend their way back into shape.
Europe has more Russian lessons to learn 26 Jun 2023 Yevgeny Prigozhin’s failed mutiny rams home the EU’s need to protect itself from trouble abroad. Leaders meeting this week in Brussels are thinking in more geostrategic terms and may now agree a China policy. But until they act as a bloc they will lack clout, says Hugo Dixon.
Indonesia IPOs hitch a dicey electric-car ride 26 Jun 2023 New listings more than doubled to $3 bln this year, beating Hong Kong and London, as firms cash in on the nation’s growing status in electric-vehicle supply chains. But deals are marred by weak secondary market performance and political risks loom. The boom looks unsustainable.
Time for world to dust off its post-Putin plans 26 Jun 2023 The Russian president has been humiliated by his former protégé Yevgeny Prigozhin’s failed coup. Whether he clings to power or is eventually shunted aside, he looks wounded. When weighing up the consequences, global powers should expect the worst but prepare for the best.
China plus one is best glue for India-US romance 23 Jun 2023 Prime Minister Modi’s largely successful state visit points to how India can help US firms like Tesla and Micron rejig supply chains. In sensitive areas like defence, trust is growing but remains in short supply. It keeps any hope of prising India away from Russia out of reach.
Capital Calls: Canada is calling Meta’s bluff 23 Jun 2023 Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.
Credit-card crackdown will net limited rewards 22 Jun 2023 Over 80% of Americans have one, yet plastic’s complexity rivals financial derivatives. A Biden administration plan to cut late fees to $8 sounds like a step toward simplicity and a savvy vote-winner. Banks will probably be no worse off, however, and consumers scantly better.