Sign In

Regulation

War on cow farts is stinky but necessary job

24 Mar 2023

Cattle’s digestion is a big driver of harmful gas emissions. To curb them, New Zealand is taxing farmers and Europe may shrink livestock numbers. Both steps have angered harvesters and may inflate food prices. The noise will teach consumers to treat beef like fossil fuels.

Spooked dealmakers scurry back into their foxholes

23 Mar 2023

Beyond high-profile cases against Google, US trustbuster Jonathan Kanter is rewriting the anti-consolidation playbook. As he shreds historic guidance, pursues criminal charges and focuses on labor, CEOs are putting M&A on ice. It’s worth waiting to see which policies stick.

Credit Suisse rescue sends shockwaves far and wide

23 Mar 2023

The ailing Swiss lender was saved by UBS with a $3 bln takeover. In this Viewsroom podcast, Breakingviews columnists debate why the deal pushes up bank funding costs, how the new mega-lender affects Switzerland’s financial system, and why bank deposits are becoming less reliable.

Deposit guarantees are the new Jedi mind trick

22 Mar 2023

Savings in US banks are safe, say Fed chief Jay Powell and Treasury Secretary Janet Yellen. If depositors believe them, they’re right, and confidence in the system should bounce back. The catch is that risk-free banking isn’t theirs to give. Even if it were, the cost is high.

Fed’s self-scrutiny starts off on the wrong foot

22 Mar 2023

Supervisory tsar Michael Barr is leading a probe into Silicon Valley Bank’s collapse. But the Federal Reserve’s tangled, partly centralized structure makes it ill-suited to conduct a warts-and-all review of its supervision. Banks don’t police themselves; the Fed shouldn’t either.

Bank woes expose gaps in EU safety net

22 Mar 2023

As the US and Switzerland scramble to head off contagion, the European Union is watching from a shaky perch. While the euro zone probably could fend off a new banking crisis, it lacks some tools for doing so. Even a backstop for insuring retail deposits remains out of reach.

Benefits of US political accord accrue to TikTok

21 Mar 2023

The short-form video platform’s CEO will appear in front of Congress this week. Backlash towards its Chinese parent ByteDance is one place politicians can agree. American media steals eyeballs when its citizens argue. TikTok, then, has an interest in keeping events copasetic.

Capital Calls: Credit Suisse bump trade

20 Mar 2023

Concise views on global finance: The bank’s shares closed above the implied value of UBS’s $3.2 bln government-backed offer. Investors expecting more may be disappointed.

Walmart gets early credit in India to offer credit

20 Mar 2023

The US retailer’s payments app, PhonePe, is raising funds at a $12 bln valuation, or 25 times forecast sales, sixfold rival Paytm's multiple. A dominant market share is a factor, but the premium rests on expectations that PhonePe will secure a coveted lending license.

Canada’s deal Mounties get $15 bln wake-up call

17 Mar 2023

Rogers’ deal for telecoms rival Shaw may finally close after a two-year fight. The country’s antitrust agency failed to block it – the latest in a history of losses. Reform efforts should wrestle with reasons for its lack of teeth next to aggressive U.S. and European enforcers.

Where is Silicon Valley’s J. Pierpont Morgan?

17 Mar 2023

JPMorgan chief Jamie Dimon channeled his predecessor by corralling fellow bank CEOs to support First Republic. Financiers band together, even with regulators, when the going gets tough. Silicon Valley, more fragmented and libertarian, lacks such a savior. That could change.

Capital Calls: FedEx delivers, for now

17 Mar 2023

Concise views on global finance: Shares in the delivery company shot up over 10% on Friday, as cost-cutting measures pay off. Those benefits could easily dwindle.

China-Swiss stock link has flimsy foundations

17 Mar 2023

Beijing is halting mainland firms from listing shares in Zurich. Concerns that Chinese investors are buying overseas to make a quick profit at home are valid. Yet in the absence of interest from foreign institutions, such cross-border stock schemes serve little purpose.

SVB’s collapse casts long and global shadow

16 Mar 2023

The US bank’s failure sparked a mass selloff in bank stocks. In this Viewsroom podcast, Breakingviews columnists debate the causes of investor jitters, the long-term implications of intervention by governments and regulators, and the latest concerns about Credit Suisse.

EU power rejig may only solve tomorrow’s problem

14 Mar 2023

Spooked by the 2022 gas crisis, the European Commission wants to boost long-term electricity contracts at fixed terms to shield consumers. That’s wiser than splitting the whole power market. Yet while it might aid green investment, it won’t curb prices in the short term.

A stronger Beijing will be clumsier on the ground

14 Mar 2023

China is concentrating more financial authority in the capital. That’s sensible, given the crisis playing out across local governments facing $9 trln of debt. Yet Beijing’s policies are largely to blame, and excessive centralisation risks amplifying mistakes.

Startup CEOs learn a lesson in counterparty risk

13 Mar 2023

The venture-backed firms that used Silicon Valley Bank tended to keep large, uninsured piles of cash there. That helped them access credit and other services but concentration was risky. The bank’s failure will bring change – with diversification in banks and in investments.

The Fed giveth, taketh away, giveth again

13 Mar 2023

The Federal Reserve helped to backstop failed Silicon Valley Bank. But it was the central bank’s easy money, followed by a sharp surge in interest rates, that pushed the lender to the brink. Other dangers for banks lurk. But with inflation high, the Fed is running out of tools.

Bank-run defences could use some reinforcements

13 Mar 2023

Silicon Valley Bank wasn’t subject to requirements that compel most lenders to hold enough liquid assets to meet possible outflows. But the speed with which corporate clients pulled their money suggests those rules need tweaking. Doing nothing raises the risk of a bigger repeat.