UK’s post-Brexit industrial plan lacks ambition 27 Nov 2017 The government has promised to boost research spending, improve education and upgrade infrastructure. Leaving the EU makes this more important, but less affordable. Even if Britain was not breaking from its largest partner, however, the goals would be strangely short of oomph.
Telecom Italia grid spinoff is no easy quick-fix 24 Nov 2017 The telecom group is reportedly exploring selling a stake in its network. A spinoff might boost TI’s valuation, and ease shareholder Vivendi’s feud with the Italian government. Yet fierce competition from rival Open Fiber would remain unsolved, and deter potential investors.
Review: Macron is a riddle wrapped in transparency 24 Nov 2017 A trio of books help explain how a political neophyte became the French president. One is a decent account of the election campaign, another delves deeper into his youth and family life. But even Emmanuel Macron’s own tome is short of detail on how he formulated his beliefs.
China’s bond squeeze could spread offshore 24 Nov 2017 Beijing's hard line on risky lending is spilling into the sovereign bond market and knocking shares in financial companies. The stock volatility has limited international significance, but an onshore fixed-income panic could infect China's offshore dollar debt pile.
Hadas: Be thankful for good economic news 23 Nov 2017 The launch of bitcoin futures contracts grabs headlines, but has no weight on the scales of history. A half-century of sharp declines in global misery is another matter. This may be the greatest economic achievement ever. Be grateful - and angry at how much is still not done.
Britain’s RBS garage sale priced for messy Brexit 23 Nov 2017 Chancellor Philip Hammond intends to raise 15 bln pounds to meet fiscal targets by selling the state’s Royal Bank of Scotland shares. He could achieve that even if the shares tumble 30 pct, Breakingviews calculates. Given the wobbly economic outlook, some wiggle room makes sense.
India eyes governance brute force to check tycoons 23 Nov 2017 A proposal to follow the UK and require listed companies to have separate chairmen and CEOs is heavy-handed. It comes amid an effort in India to learn from past mistakes that have brought a mountain of bad debt, but an overly prescriptive approach risks unintended consequences.
Indonesia can close gap with tiger cub neighbours 23 Nov 2017 Stellar growth in Singapore, Vietnam and elsewhere means Indonesia is the laggard in a booming region. President Joko Widodo could do more to catch up, moving faster to upgrade infrastructure. Reassuring foreign firms by solving an ugly mining dispute would help too.
Sabotaging Obamacare backfires on Republicans 22 Nov 2017 President Trump claims his predecessor’s health-insurance program is dying. He and the GOP have eliminated some subsidies and slashed marketing. Yet the pace of enrollment has risen from last year. The political cost of efforts to kill the program is rising.
The Exchange: Jim Rogers 22 Nov 2017 The longtime Asia bull and Quantum Fund co-founder thinks the worst bear market of his lifetime is coming. He swung by our Hong Kong bureau to discuss the risks, as well as Trump’s Asia tour and why America could become its own worst enemy if it lets China dominate the region.
Hammond struggles in Brexit straitjacket 22 Nov 2017 The UK budget contained giveaways to homebuyers and the health service, funded by asset sales and accounting fiddles. But bleak growth forecasts limited Chancellor Philip Hammond’s generosity. Weak productivity growth will add to the economic pain of leaving the European Union.
Dutch Brexit red carpet hastens tax race to bottom 22 Nov 2017 The country’s new government plans to slash corporate taxes and cancel a levy on dividends paid overseas. One reason is to lure multinationals unsettled by Britain’s departure from the European Union. It’s an expensive gamble that makes it likelier other nations will follow suit.
Berlusconi’s court fight has become a sideshow 22 Nov 2017 The Italian ex-premier, excluded from office in 2013 after sex parties and the euro zone crisis, is challenging the ban in Europe’s human rights court. A verdict before a spring election is unlikely, but for better or worse Berlusconi doesn’t need one to be a political kingmaker.
Silicon Valley gets lesson in Chinese corruption 22 Nov 2017 Lu Wei, the former head of the Cyberspace Administration of China, whom Mark Zuckerberg and Reid Hoffman courted, just got snagged in a corruption probe. It's a reminder that party trumps personnel. And that Lu's former agency is more than a censor. It now determines policy.
Trump administration scrambles media signals 21 Nov 2017 The DOJ wants to block AT&T’s merger with Time Warner over concerns the two will use content to stiff rivals. But another agency intends to scrap rules that force internet providers to treat web traffic equally. It’s a confusing mix that makes for a blurry regulatory picture.
Randall Stephenson makes his last stand 20 Nov 2017 The AT&T boss is fighting U.S. regulators who sued to block his $85 bln merger with Time Warner. Faced with similar opposition six years ago, he gave up a $39 bln tilt for T-Mobile US. This time he has left no room for retreat. Anything less than all-out victory would be fatal.
Powell’s mystery Fed board poses continuity risk 20 Nov 2017 As expected, Janet Yellen will leave the U.S. central bank when her successor takes over. Jay Powell will inherit a skeleton board in need of four more Trump appointees. The lack of holdovers, amid a pivotal shift away from crisis-era policies, could make for a bumpy transition.
Market will trump politics on Keystone pipeline 20 Nov 2017 Nebraska’s green light for the controversial project is a victory for President Trump but doesn’t guarantee it will be built. Years of delays have let rivals steal a march while low prices sap interest in drilling Canadian oil sands. The economic grounds for proceeding are soft.
Mugabe will cast a long shadow over Zimbabwe 20 Nov 2017 The 93-year-old ruler is likely to be impeached after nearly four decades in power. He bequeaths an economy in urgent need of reforms. The most important – attracting foreign investment and restoring trust in the currency system – will happen over years, not weeks.
Merkel’s weakness could give Europe strength 20 Nov 2017 The collapse of coalition talks will force German Chancellor Angela Merkel to weigh other options. Another grand coalition or a minority government would be preferable to new elections. Revamping the euro zone will be easier without the Free Democrats opposing fiscal integration.