A TuSimple China reversal would be hard to follow 18 Mar 2022 The $3 bln autonomous-truck upstart may sell its unit in the People's Republic. Splitting the Chinese-run firm would allay data concerns. Partners like UPS and better prospects make its U.S. business more appealing. Other Chinese entrepreneurs would struggle to take such an exit.
Nickel gets nixed, French firms linger in Russia 17 Mar 2022 The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.
Capital Calls: Electric vehicles 17 Mar 2022 Concise views on global finance: Tesla and BYD price hikes show that EV makers need to push harder to slim down designs and jettison expensive materials.
China Inc walks tightest of ropes over Ukraine 17 Mar 2022 Alibaba, Didi and ByteDance are at the pointy end of Beijing’s ambiguous position on Russia’s aggression. Others including chipmaker SMIC must tread carefully to avoid secondary sanctions. This war could accelerate the downgrade of Chinese companies’ global ambitions.
Russia punches economic hole above its weight 16 Mar 2022 The country that was a trade minnow during the Cold War became a big commodities exporter. That’s why the isolation of an economy smaller than Texas is pushing up global prices of energy, wheat and other goods. Though some countries can help fill the gap, consumers will suffer.
China’s finance technocrats grab back the mic 16 Mar 2022 Vice Premier Liu He wants government agencies to coordinate any new policies that might impact markets with financial watchdogs first. That’s music to the ears of investors tired of endless, roving crackdowns. Tech companies in particular will pray Liu wins this turf war.
Emmanuel Macron changes stripes as election nears 15 Mar 2022 The French president’s chances of winning a second term have been boosted by his performance during the pandemic and since Russia’s attack on Ukraine. But the main plank of his platform is to “protect” the French. That’s a far cry from the bold reformer who ran five years ago.
War crowdfunding is weapon that cuts two ways 14 Mar 2022 The $100 mln raised by Ukraine through cryptocurrencies and a central bank link puts a new spin on an old trend of outside funding for conflicts. Technology makes it easier and faster to supercharge the fight. The catch is that the tools have potential use for an aggressor too.
Capital Calls: Telecom Italia takes KKR’s call 14 Mar 2022 Concise views on global finance: The Italian telco’s board decides to start formal talks with the buyout firm, four months after it first proposed a 10.8 bln euro takeover.
Rio’s Mongolian generosity reflects strategic bind 14 Mar 2022 The $120 bln miner has offered $2.7 bln to buy out minority investors in Turquoise Hill, which controls the giant Oyu Tolgoi copper mine. Rio Tinto could have paid less last year. But its lack of metals needed for alternative energy makes it vital to remove any future barriers.
China’s pandemic playbook runs low on pages 14 Mar 2022 Financial hubs Shanghai and Shenzhen are locking down as infections surge. Recycling tough policies from 2020 will put the “around 5.5%” annual growth target even further out of reach. Living with the virus would be economically stimulating, but politically embarrassing.
Refugee bonds can keep humanitarian corridors open 11 Mar 2022 Europe says 7 mln Ukrainians may flee Russia’s invasion. The 2015 refugee crisis showed migrants can boost workforces and economies. But integrating new arrivals is expensive. Impact bonds can pay for the upfront resettlement burden, limiting quarrels between host nations.
Dixon: War boosts need for “green Marshall Plan” 11 Mar 2022 The West needs more allies, not just to turn Russian President Vladimir Putin into a global pariah, but to show China what will happen if it too throws its weight around. A good way to do this is to supercharge its embryonic plan to help developing countries grow in a green way.
ECB chucks growth ball into governments’ court 10 Mar 2022 President Christine Lagarde is winding down asset purchases. It’s the opposite of what the central bank did in past crises, but high inflation is forcing her hand. Shielding the euro zone economy from the Ukraine war’s consequences will fall to politicians, who are slower to act.
Saudi’s MbS will eventually take Biden’s call 10 Mar 2022 America cannot plug the shortfall from cutting off Russian oil. Increased output from OPEC, and particularly Saudi Arabia, is key. De facto leader Mohammed bin Salman isn’t eager to help the U.S. president, but needs the endorsement of Western cash to transform the economy.
Gauging the global backlash against Russia 10 Mar 2022 The shockwaves from President Vladimir Putin’s invasion of Ukraine are reverberating around the world. In our Viewsroom podcast, Breakingviews columnists debate the country’s isolation, the impact on Asia, Europe’s plan to wean itself off Russian gas, and the fallout for banks.
Venezuela gives Washington lesson in realpolitik 9 Mar 2022 The Latin American country’s oil could conveniently replace U.S. imports from Russia. But the regime of Nicolás Maduro has been under U.S. sanctions since 2017. Easing them would amount to accepting the lesser of two evils, with nearly 30 million Venezuelans as pawns.
It’s time for Macron to pull Total out of Russia 9 Mar 2022 French governments usually don’t hesitate to meddle in corporate affairs. The oil major’s refusal to sell its 19% stake in oligarch-controlled Novatek suggests uncharacteristic modesty from President Macron. Given the damage to France’s reputation, this doesn’t make sense.
Ukraine speeds global rush to self-sufficiency 9 Mar 2022 Sanctions cutting off Russia’s access to chips and payments systems, plus spiking food and energy prices, will prompt governments to rethink trust in free trade, already rattled by the U.S.-China trade war and Covid-19. An inefficient protectionist era may be in the offing.
South Korea kicks off Asian welfare state debate 9 Mar 2022 A proposed universal basic income scheme has taken centre stage in the country's tightly contested presidential election. Given rising inequality and weak social safety nets, voters are warming to the radical idea. Other stingy governments in the region might take note.