Italy’s first female PM is red flag for workwomen 16 Sep 2022 Ultra-right politician Giorgia Meloni is likely to become the next premier. She opposes boardroom quotas that have lifted female representation from less than 7% to 41% in a decade. Scrapping them would be a setback for a country struggling with stubbornly low female employment.
Capital Calls: Byju’s revenue fail 15 Sep 2022 Concise views on global finance: Byju’s topline shrunk after its auditor advised it to recognise its revenue differently.
Capital Calls: U.S. railways steer clear of crisis 15 Sep 2022 Concise views on global finance: Major U.S. railroads and unions reached a tentative deal, avoiding a shutdown that could have widespread consequences on the U.S. economy.
Bonus cap scrap would be dubious Brexit dividend 15 Sep 2022 UK finance minister Kwasi Kwarteng may dump rules curbing banker payouts to twice their salary. Yet it would only marginally boost the City’s competitiveness and may make more meaningful tax changes less likely. The benefits of tearing up EU regulations look increasingly elusive.
U.S. drug price cap hurts Big Pharma twice over 15 Sep 2022 President Biden’s plan to curb medicine bills could cost drugmakers like Pfizer or GSK $29 bln a year in lost sales. To cope, companies may focus on blockbuster therapies, and shun niche treatments. More competition in hot areas like cancer may mean lower prices and poor returns.
Europe can shrug off Putin’s Chinese gas Plan B 14 Sep 2022 With exports to its key European market shrinking fast, Moscow hopes to hike gas exports to the People’s Republic. But last year these were just 7% of EU sales, and logistics and sanctions complicate the shift. It need not deter Europe’s talk of a Russian gas price cap.
Italy’s next government has tricky to-do list 13 Sep 2022 A rightist coalition is poised to win Italian general elections this month. In this week’s Exchange podcast Muzinich’s Fabrizio Pagani discusses the next executive’s immediate economic challenges. These include coping with an energy crisis, high public debt and a bailed-out bank.
China congress will keep investors catastrophizing 13 Sep 2022 The twice-a-decade meeting in October is likely to secure President Xi Jinping a third term. Hopes Beijing will then relax about politics and focus on propping up growth may be misplaced. As the economy slumps, investors look set to fixate on signs of the worst, not the best.
Europe energy fallout will cascade down the years 12 Sep 2022 The gas crisis is a long-term problem which will make the region poorer and less competitive while saddling it with higher public debt. Dealing with this as well as high inflation will cause further political ructions which will cascade down the years, says Hugo Dixon.
Norway gas lifeline for Europe is the smart move 9 Sep 2022 The staunch NATO ally supplies 25% of the European Union’s gas needs and nearly half Britain’s. A trebling of oil cash and record profit at energy giant Equinor give Norway scope to cut the EU some slack on gas prices. The discount size is less important than the gesture.
Putin’s gas ploy worsens Russia’s economic plight 9 Sep 2022 The EU paid 89 bln euros for Russian oil and gas in the last six months. That helps President Vladimir Putin afford the closure of a key pipeline. But the move will speed Europe’s search for other energy sources. If the EU holds firm on sanctions, Russia’s recession will deepen.
Queen was Britain’s ultimate brand ambassador 8 Sep 2022 During seven decades on the throne, Queen Elizabeth II brought stability and dignity as the United Kingdom morphed from a manufacturing economy to a seller of services to the rest of the world. Her death at 96 leaves the country struggling to project the same credibility.
UK energy bailout leaves key details in the dark 8 Sep 2022 New Prime Minister Liz Truss plans to cap power bills for two years at a likely cost of over 100 bln pounds. It’s unclear how the scheme works, who pays the bill, or what restrictions suppliers will face. What’s certain is Britain has moved further away from a free energy market.
The consequences of Europe’s energy crisis 8 Sep 2022 As Russian President Vladimir Putin cuts off gas through a key pipeline, Breakingviews columnists discuss the response from UK and European governments, how the shutdown could have some longer-term benefits, and when Russia will feel the squeeze of lost revenue.
Trump SPAC vote is common problem writ bigly 6 Sep 2022 Retail shareholders rarely cast ballots, even when it’s in their interest. Take the merger of Donald Trump’s media firm with a listed shell company: Investors are opting, by inaction, to swap stock trading at $25 for $10 in cash. The effects of inertia reach beyond Mar-a-Lago.
EU has ways to learn to live with less gas 6 Sep 2022 The closure of a key Russian pipeline leaves Europe facing a 20% shortfall in fuel supply. Measures to cut demand like lower temperatures in homes and incentives for companies to use less energy may soften the blow. More gas-dependent nations like Italy must now work harder.
Trussonomics may freak out the markets 5 Sep 2022 If the UK’s new prime minister was only planning big energy subsidies, investors might not worry too much. But Liz Truss is also planning tax cuts – and may pick fights with both the Bank of England and European Union. If so, the pound could be clobbered, says Hugo Dixon.
Putin shoves Europe over the energy rubicon 5 Sep 2022 By shutting the Nord Stream 1 pipeline, the Russian president has ensured the continent faces sustained high power costs. States have so far stopped short of drastic market interventions. All are now wising up to the need to freeze prices, ration demand, and tax windfall profits.
D.C. will do just fine even if America doesn’t 2 Sep 2022 With Congress finely balanced, the value of political influence has risen. Nearly $4 bln of lobbying money poured into the U.S. capital in 2021. Companies like Meta Platforms are spending more even as they cut elsewhere. That makes Washington recession-proof – at least for some.
Chinese audits, Vaccine wars, UK tax cuts 1 Sep 2022 Beijing will let companies submit to U.S. audit requirements. In this Viewsroom podcast, Breakingviews columnists argue only weak firms will comply. Also, Pfizer and Moderna’s legal battle is unlikely to create a winner, and Britain’s prime ministerial hopefuls debate handouts.