Japan is laggard in China-led scramble for Africa 30 Aug 2019 Tokyo wants its companies to pour more money into the continent, partly to counter Beijing’s influence. The U.S. is beefing up overseas finance for similar reasons. But with China’s $43 bln of Africa investments set to overtake America’s, rivals have a lot of ground to make up.
Dixon: Greek PM makes good but not perfect start 30 Aug 2019 When Kyriakos Mitsotakis met German Chancellor Angela Merkel yesterday, he was able to point to a list of quick wins, including lifting capital controls. But the new Greek prime minister has also made errors. To change the country for good, he’ll have to learn from them.
Uniqlo owner’s luxury premium merits a rethink 30 Aug 2019 A South Korean boycott of Japanese goods has hurt Fast Retailing. It's another foreign snag for the $63 bln seller of cheap cashmere. Boss Tadashi Yanai needs shoppers abroad, given weakness at home; setbacks leave its valuation, racing ahead of Zara owner Inditex, looking rich.
Argentina debt flashback includes glimmer of hope 29 Aug 2019 President Mauricio Macri wants to restructure the country’s borrowings as his four-year effort to restore its economy and market standing nears an end. History warns against optimism, but the move could give his likely successor some breathing room – if he doesn’t squander it.
Italy’s odd coalition offers deceptive stability 29 Aug 2019 The left-leaning Democratic Party and maverick 5-Star Movement are set to form a new administration under Premier Giuseppe Conte. That averts an election and a clash with Brussels. Past distrust and diverging views of business make the coalition as fragile as the previous one.
Opportunity costs pile up for Samsung 29 Aug 2019 The trial of the electronic giant’s de-facto boss, Jay Y. Lee, will drag on after South Korea’s top court overturned a softer sentence. It helps President Moon, who has little to show for his anti-corruption fight. For Samsung, it increases doubt over its ability to be nimble.
Viewsroom: Brexit’s pro-rogue nation 29 Aug 2019 UK Prime Minister Boris Johnson has prorogued parliament, cutting the time available for lawmakers to thwart a planned Oct. 31 EU departure. What does this mean for Brexit and the UK economy? Plus: we pick through the wreckage of China’s crashing automotive market.
Hong Kong’s pain offers Singapore a little gain 29 Aug 2019 Anti-government protests have fed demand for visas and safe-haven pads abroad. Singapore has warned wealth managers not to take advantage. Officials fear instability, and angering Beijing, would overwhelm any benefit. The Lion City can offer softer lessons instead.
Bill Dudley blows the U.S. central bank’s cover 28 Aug 2019 The ex-New York Fed boss proposed monetary-policy resistance to Donald Trump’s trade war. To be fair, the president exploded norms first. Yet Dudley, though now a private citizen, has weakened the Fed's apolitical credentials. It paints Chair Jay Powell further into a corner.
Hadas: The right Brexit is still no Brexit 28 Aug 2019 Three years and two prime ministers after a divisive referendum, the UK is as far as ever from a national consensus on how to leave the EU. A decision to stay now would be economically sensible, globally responsible - and politically no harder than any variety of separation.
Beijing-backed businesses riding to the rescue 28 Aug 2019 They account for about a quarter of China’s GDP, a new World Bank study reckons. Lending data suggest a larger impact and Fitch counts more than 100 recent cases of listed companies selling stakes to state-owned enterprises. Helping cushion a weaker economy will be a big burden.
Bernie Sanders grasps wrong half of media problem 27 Aug 2019 Everyone knows the news industry is in trouble. But the U.S. Democratic presidential candidate’s proposed solutions – blocking M&A and taxing Silicon Valley – won’t revive a fading sector. The best chance of survival lies with rich patrons like Jeff Bezos and nonprofit models.
Spain will soon face tab for policy stasis 27 Aug 2019 Prime Minister Pedro Sanchez has spent four months unsuccessfully trying to secure a parliamentary majority and may have to call another election. Political gridlock mattered less when the economy was doing well. Now it will hinder Madrid’s ability to combat slowing growth.
New Delhi’s central bank raid helps by half 27 Aug 2019 The record $25 bln being transferred to the government should help Prime Minister Narendra Modi’s stimulus plans. State lenders could use the funds more than the well-cushioned RBI. It would be imprudent to recapitalise them, however, without accompanying governance changes.
Trump’s chaos theory of negotiation is a dead end 26 Aug 2019 The U.S. president says trade talks are back on with Beijing three days after escalating tariffs and calling Chinese leader Xi Jinping an “enemy.” Yet his erratic aims and tenor make it hard for counterparties to engage, as the G7 demonstrated. It’s no way to strike a good deal.
Trump containment talk hardens Beijing hardliners 26 Aug 2019 The president on Friday announced fresh tariffs and “ordered” American companies to explore relocation, saying he will make sure the U.S. economy stays larger than China’s. It feeds Beijing’s suspicions that the United States now seeks to keep China down, not negotiate with it.
Hong Kong leader boxes herself into a corner 26 Aug 2019 Carrie Lam keeps failing to defuse a crisis of her own making. Increasingly out of touch, she has become a liability as the economy suffers and China’s anniversary approaches. It’s getting harder to see how she will be the one to find a compromise that subdues violent protests.
Climate-denying magnate stoked potent opposition 23 Aug 2019 Billionaire David Koch’s funding for anti-global warming causes helped delay a response to a mounting crisis. He died as record fires beset the Amazon. But governments, companies and investors have already consigned his belief that free markets cure all ills to the scrap heap.
Carmakers have $372 bln incentive to defy Trump 23 Aug 2019 That’s the annual sales at risk if they don’t meet emissions rules in California and 14 other states that are tougher than the U.S. president wants. True, carmakers could lose sales elsewhere if Trump were right that cleaner cars cost more and work less well. But he isn’t.
Biggest global discontinuity risk is to the upside 23 Aug 2019 As G7 leaders prepare for a non-meeting of minds, the worldwide slide into discord seems unstoppable - from Brexit Britain and erratic Trump to troubled Kashmir and Hong Kong. Markets expect more of the same, but the biggest risk now may be a step change – for the better.