Trump’s OPEC smackdown more relevant than it looks 20 Apr 2018 The president slammed the oil cartel for production cuts that spurred the highest oil prices since 2014. Whatever his intent, members meeting in Jeddah should be wary of leaving the field open for rivals. A U.S. shale-drilling frenzy would hurt prices more than a tweet.
Review: How to deprogram economic xenophobia 20 Apr 2018 In "Us vs. Them", political scientist Ian Bremmer joins the crowd bewailing the retreat of globalisation. He identifies roots and risks, but finds no easy fixes. Ideas like universal basic income and taxing robots are band-aids. What's needed is a better global school system.
Japan would take turn for worse without Abe 20 Apr 2018 Allegations of cronyism could bring Shinzo Abe’s five-year run as deflation killer to an end. While ultra-loose monetary policies may live on, one potential successor is more focused on North Korea than structural reforms. Markets are being sanguine about the potential fallout.
Viewsroom: Fintech’s growing pains 19 Apr 2018 Upstarts like LendingClub and SoFi need to find ways to keep customers returning – just as traditional banks are fighting back and Goldman Sachs’ digital push into consumer lending takes off. Also: how Malaysia’s prime minister may be re-elected despite the 1MDB scandal.
Beijing sets off careless Wanda fire sale 19 Apr 2018 Officials pushed the developer to shed assets to pay down debt, forcing it to scramble to stave off default. Buyers of its properties got discounts that let them book billions in quick profit. In retrospect, Beijing’s meddling looks more hapless than prudent.
Cuba rings changes while trying to stay the same 18 Apr 2018 Raul Castro's coming handover of Cuba's presidency is an effort to prolong beyond his own life span the communist revolution he built with late brother Fidel. Trying to modernize could also destroy it, though. And with neighbor Venezuela getting less able to provide cheap oil, economic reform can't wait.
Hadas: Knowledge is better shared than patented 18 Apr 2018 China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.
KPMG woes force South Africa to consider Big Three 18 Apr 2018 The audit firm’s future in the country is in doubt after it was sacked by the government – its biggest client – following the second scandal in under a year. Regulators have long worried about losing one of the Big Four global firms. South Africa provides a reluctant test case.
Review: Comey is flawed champion of civics revival 17 Apr 2018 In his blockbuster memoir, the ex-FBI director who prosecuted Martha Stewart and worked at Bridgewater calls Donald Trump an unethical liar and a threat to American institutions. His yarn is riveting, but reveals Comey’s mix of principled leadership and sanctimonious showboating.
L&G’s gender revolt has revealingly low bar 17 Apr 2018 The 983 bln pound asset manager will vote against chairs at UK companies if boards have too few women. It’s a laudable move. But the 25 pct threshold looks low, and traps groups as big as Barclays or London Stock Exchange. Diversity in British boardrooms has a long way to go.
China’s two-track money policy hangs over economy 17 Apr 2018 Even as GDP grew 6.8 pct, industrial activity looks cooler, auguring a softer government line on bad debt. Higher official interest rates are being offset by short-term injections that keep the real cost of cash down. That could weaken the yuan and stir up more trade trouble.
Trump’s Fed is more rerun than reality TV 16 Apr 2018 Nominating economist and Pimco adviser Richard Clarida as vice chair and regulator Michelle Bowman to the board are predictable moves. With the central bank, the U.S. president has shunned the turmoil sown elsewhere in government. For investors, that's comforting continuity.
Russia’s banks could once more be its airbag 16 Apr 2018 The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.
Trump spins trade wheel in friendlier direction 13 Apr 2018 The U.S. president is thinking of rejoining the TPP – an 11-member group set up in part as a bulwark against Trump's trading bugbear, China. Sharing should make that easier, while also appeasing American farmers. The question is whether Trump can compromise for long – or at all.
Review: America’s founding was all about the money 13 Apr 2018 “New World, Inc.” explores the role of British merchant adventurers in laying the groundwork for the colonial settlements in Virginia and Plymouth. The book is a prequel of sorts to the Pilgrim creation myth that suggests Mammon, not religious freedom, drove America's creation.
Qatar/Exxon love-in makes two types of sense 12 Apr 2018 Deepening its relationship with the Texas-based oil major would tie the Arab state more closely to the U.S. after recent tensions with Saudi Arabia. It also gets Exxon investing in infrastructure. That could open up the global market, to the benefit of both parties.
Brazil’s anti-graft drive may hamper fiscal reform 12 Apr 2018 The jailing of the country's most popular politician, Lula, and voter disgust at corruption among the powerful will give outsiders with clean reputations a chance to shine in October elections. That's welcome, but could mean needed spending cutbacks are less likely to happen.
Opacity makes U.S. sanctions on Russia more potent 11 Apr 2018 Rusal aluminium will be barred from London’s Metal Exchange, and the Russian group and parent En+ will be deleted from some stock indices. In theory, non-Americans should be able to deal with both. But fear of how rules will be enforced is compounding the pain of tough sanctions.
Hadas: Even Trump can’t make graft great again 11 Apr 2018 Resistance to corruption is evident in cases against ex-leaders of South Korea, Brazil and South Africa. Old royal privileges make no sense in modern economies. U.S. officials and the corporate elite have strayed, but rising middle classes will keep straightening out the crooked.
HSBC donates top banker to China’s soft power push 11 Apr 2018 The bank created a new role sure to please Beijing: Head of Belt and Road Initiative. The job will be to coordinate efforts serving the $1 trln overseas infrastructure plan. The nomenclature will burnish HSBC's cred in China. And it may catch on with the rest of Wall Street.