UK power market deficiencies flash red at bad time 20 Sep 2021 Britain may spend hundreds of millions of pounds propping up its energy sector. Soaring prices are a global problem, but the UK has a more liberal market and fewer alternative power sources. It’s a poor look as Boris Johnson prepares to lecture others on cutting carbon emissions.
Aussie subs are lightning rod for global tensions 20 Sep 2021 French ire at losing a $40 bln defence contract to America and the UK may jeopardise an EU trade pact with Canberra. Frictions between allies make it harder to form a united front against China on commerce. And the new security pact hinders attempts to thaw Sino-U.S. relations.
Capital Calls: China/TPP, Flavourings, Chill-boxes 17 Sep 2021 Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.
Capital Calls: Biden channels Trump on China 16 Sep 2021 Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.
South Africa is litmus test for climate solidarity 15 Sep 2021 Despite its relatively small size, the Rainbow Nation’s economy is a big CO2 emitter. Yet Pretoria can ill afford a switch from coal due to soaring public debt. A $10 bln aid plan could be the answer, if lenders can close their eyes to the financial and political risks.
Tech execs invoke inner Texan in California vote 14 Sep 2021 Former PayPal COO David Sacks is among Silicon Valley elites who want Governor Gavin Newsom removed. High taxes and Covid-19 policies might change if a ballot leads to his being replaced by radio host Larry Elder. But then tech gurus lose the right to put on social justice airs.
Norway readies fresh round of green air guitar 14 Sep 2021 The Scandinavian state is on track for a left-wing coalition pledging to do more on climate change after eight years of conservative rule. But rapid cuts to national hydrocarbons output aren’t likely. Given Norway has a $1.4 trln wealth fund, it can afford to go beyond gesturing.
Capital Calls: Fake crypto news summons regulation 13 Sep 2021 Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.
U.S. deficit hawks in exile 20 years after 9/11 10 Sep 2021 Federal debt grew by nearly seven times in 20 years to about $22 trln. Stimulus to pay for crises might have been warranted, but that wasn’t followed up by financial discipline. Fiscal conservatives are gone. With a race to please voters, it doesn’t look like they will return.
Review: Navalny explores limit of Russian activism 10 Sep 2021 The jailed politician used tactics borrowed from investors to challenge Vladimir Putin, the authors of “Navalny” explain. Even though he can’t run in elections or appear on TV, 75% of Russians know who he is. But if they keep shrugging off corruption, his nemesis will prevail.
RWE makes for a good coal wind-down guinea pig 10 Sep 2021 The 22 bln euro German utility’s new activist wants it to ditch carbon-intensive lignite assets faster. If the government wants to hit tougher CO2 emissions targets, RWE will have to. The least-bad way forward may be for Berlin to assume the offending power plants itself.
Viewsroom: Bitcoin, El Salvador and Roger Federer 9 Sep 2021 As the Central American country adopts the cryptocurrency as a coin of the realm, Richard Beales and Gina Chon discuss the merits of stablecoins and the scramble by regulators to catch up with the market. Karen Kwok takes a slice at Roger Federer-backed running shoe outfit On.
German election offers more continuity than chaos 8 Sep 2021 A three-way coalition may lead the EU’s largest economy after September’s poll. A grouping of left, right, or green lawmakers could take months to form and shirk reforms at home and in Europe. Climate change and the pandemic aftermath will still shape policy for the better.
Capital Calls: AMC, German pet retailer 8 Sep 2021 Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.
El Salvador takes a risky punt on crypto 7 Sep 2021 Bitcoin is now an official currency in the Central American republic, alongside the U.S. dollar. There are potential benefits for a country that is so dependent on remittances from abroad, but President Nayib Bukele’s pioneering move has way too many downsides.
Capital Calls: UK interventions, Post-virus reset 7 Sep 2021 Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.
Guinea coup is win for Australia and Brazil 6 Sep 2021 Soldiers have deposed the West African nation’s president, Alpha Condé. Besides disruption to bauxite exports, the upheaval may upend development of the Simandou mine’s 8.6 billion tonnes of iron ore deposits, capable of adding 10% to global output. Rival diggers will be smiling.
Review: Covid-19 and the crises yet to come 3 Sep 2021 2020 was one of the most seismic years in world history. Adam Tooze’s “Shutdown” recaps how the pandemic exposed the fragility of an interconnected world, while uncovering some pockets of strength. It’s a troubling test run for future challenges, most notably from climate change.
Japan adds PM’s scalp to Olympic invoice 3 Sep 2021 Prime Minister Yoshihide Suga is stepping down. His failure to contain Covid-19 and his insistence on holding the $15 bln Tokyo Games despite popular opposition doomed him. His exit may dampen other governments’ enthusiasm for the event and puts economic reform momentum at risk.
Rio Tinto can afford to go halves in Mongolia 3 Sep 2021 The miner’s $14 bln Oyu Tolgoi scheme is over budget and debt-laden, depriving its government partner of a return. Restructuring so only 50% of the project’s free cash pays down debt could restore dividends and win Mongolia over. High copper prices give Rio scope to act.