Trump will be party pooper-in-chief at Davos 10 Jan 2018 The U.S. president’s “America First” agenda is the antithesis of the Swiss conflab’s global ethos. His visit to the mountain resort may be a bid for reconciliation, or a pitch for strongman status. Either way, his presence is a stark rebuke to Davos elites who got him badly wrong.
Italy’s pension U-turn would try markets’ patience 10 Jan 2018 Centre-right parties, frontrunners in March elections, have vowed to scrap a key pension reform passed during the 2011 crisis. The law is rigid, but axing it would hurt young Italians and widen Rome’s fiscal deficit. Investors would have a reason to avoid Italian debt.
China’s U.S debt talk reveals weak trade-war hand 10 Jan 2018 Beijing may slow or halt Treasuries purchases. It’s the biggest holder of Uncle Sam’s liabilities, so in theory the People’s Republic has leverage as the White House mulls imposing tariffs. As with other measures China could take, though, it would cause damage at home.
Chancellor: Bitcoin will never be real money 9 Jan 2018 The leading crypto-currency has monetary characteristics. But without state backing and a means for circulating credit in the capitalist economy it lacks the nature of money and is destined to fail. That’s why some more modest bitcoin alternatives, like ripple, look more promising.
Cold snap chills prospects of U.S. coal subsidies 9 Jan 2018 The federal energy regulator nixed Energy Secretary Rick Perry’s proposal to prop up nuclear and coal power. Instead grid operators will be asked how to improve energy reliability. That’s more logical, especially after bad weather showed no fuel source is immune from disruption.
Steyer’s largess a double-edged sword for Democrats 8 Jan 2018 Billionaire Tom Steyer plans to shower $30 mln on Democratic candidates this year. That might help the party take control of the House in the U.S. midterm elections. But the hedge funder’s parallel campaign to impeach President Trump could complicate their task if they win power.
Myanmar tourism stock soars away from crisis 8 Jan 2018 Hot-air balloon operator Memories Group had a strong debut after reversing onto the Singapore exchange. The shares jumped 60 pct amid an ongoing Myanmar military campaign condemned by the UN as ethnic cleansing. Investor optimism is hard to square with the political realities.
Bannon woes gift Rupert Murdoch a Happy New Year 5 Jan 2018 Fresh from his Disney deal, the media mogul may benefit from a new book about White House dysfunction. The exposé is ripping apart the alliance between President Trump and his former aide and Breitbart News boss. That may hobble a major rival just as Murdoch launches New Fox.
Greek banks’ sour loans face reality check in 2018 5 Jan 2018 Lenders plan to shrink their bad debts by 37 pct over two years, including through sales. A recovering economy and falling government bond yields should help. But without a clearer picture of what buyers might pay, shareholders have little clarity over how much pain lies ahead.
Anti-euro debate rears its head in Italy 5 Jan 2018 Northern League leader Matteo Salvini has reiterated his opposition to the single currency. Growing Italian discontent with the EU could make an anti-euro stance a vote-winner in upcoming elections. Despite Europe’s economic revival, monetary union remains a political target.
Investors will only curb CEO pay if forced 4 Jan 2018 The bosses of top UK companies have on average taken a pay cut, according to a new report. Fears of a political backlash made investors more apt to vote against chunky remuneration packages. The restraint may be fleeting unless a weakened government can keep up the pressure.
Oil bulls look to Trump rather than Iran protests 4 Jan 2018 A tightening global balance of supply and demand for crude means geopolitical shocks could push up prices. Anti-government protests in Iran seem unlikely to disrupt production. A looming U.S. decision on whether to revisit sanctions could have a bigger impact.
Germany will follow money in EU top jobs carve-up 4 Jan 2018 Jockeying to replace the region’s most powerful people, including European Central Bank boss Mario Draghi, will begin in earnest in 2018. Proposed new posts like a euro zone finance minister complicate the contest. Berlin will prefer control of purse strings to interest rates.
M&A frenzy sets scene for epic tug-of-war 3 Jan 2018 The $3.6 trln of mergers announced in 2017, including huge deals from Disney and Broadcom, sets up some chunky targets for cost cuts. That means job losses, even if buyers say not. Yet given the political climate, shareholders can’t count on the extra profit being theirs to keep.
Duterte’s infrastructure push needs more than cash 2 Jan 2018 A new revenue-raising tax bill will help Philippines President Rodrigo Duterte pay for a “golden age of infrastructure” to increase competitiveness and living standards. The challenge will be to deploy the proceeds efficiently and without fostering corruption.
Predictions 2018 2 Jan 2018 From elections to electric cars, we offer a series of insights into what 2018 has in store for companies and economies. Read our predictions online or download the book
Boeing’s stealthy Embraer approach has big aims 2 Jan 2018 The U.S. aerospace giant is considering joint ventures with the Brazilian planemaker rather than a takeover bid. That’s smart. A lower altitude should allow it to sidestep political and financial turbulence while forging more extensive links than rivals Airbus and Bombardier.
Italy will go back to its old ways in 2018 2 Jan 2018 The country’s flawed electoral law will produce a hung parliament in national polls. Reformist forces will be weaker while former Prime Minister Silvio Berlusconi will gain traction. A return to the frail coalitions of the past makes it harder to cut public debt and red tape.
Our 2018 predictions on Reuters TV 31 Dec 2017 From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.
Viewsroom: Investors target sexual misconduct 29 Dec 2017 Companies that sweep settlements for bad behavior under the carpet will feel shareholder ire in 2018, Breakingviews predicts. Plus, Apple will float past the EU’s roving eye, splintering political parties are a ticking U.S. time bomb and bank bosses may hang up their hats.