Breakdown: Redesigned TPP deal goes to 11 14 Nov 2017 The Pacific trade pact may be 70 pct less valuable in terms of global income. For Japan, Canada and nine others, though, good economic reasons exist to proceed. It's a defence against lopsided bilateral deals. And TPP could yet add partners to recapture many of the lost benefits.
China’s vitamin collusion is a bitter trade pill 9 Nov 2017 Beijing wants to be treated as a rule-abiding market economy. But in an ongoing legal dispute, Chinese officials say they pushed domestic vitamin makers to coordinate prices in the U.S. market. China’s unwritten trade rules are often more important than the written ones.
Wilbur Ross deflates Trump’s rich cabinet 8 Nov 2017 The president tapped wealthy execs for their supposed smarts and dealmaking skills. News that the U.S. commerce secretary may have been less than truthful about his holdings and net worth undermine that argument. The blowback may give pause to other wealthy pretenders to high office.
Congressional stick may beat Trump’s China bombast 7 Nov 2017 The president has talked tough about punishing the nation’s largest trading partner, but mostly avoided measures like tariffs. Now some U.S. lawmakers want to make it hard to buy American companies. Such bipartisan legislation poses a bigger risk to Beijing than the White House.
Abe best off keeping Trump out of economic rough 3 Nov 2017 The Japanese premier has established an uncommonly good rapport with his U.S. counterpart. At their upcoming meetings, including on the golf course, Shinzo Abe would be well-served focusing on North Korea. Trade and currency matters only risk creating a momentum-slowing wedge.
Wall Street loses in search for easy China wins 1 Nov 2017 Energy and industrial companies like GE will get to cozy up to Beijing’s new leaders during Trump’s Asia trip, but financial services aren't part of the group. That reflects White House desires for low-hanging deals to tout, and dim hopes for improved market access.
Tesla could hit second gear with Shanghai factory 22 Oct 2017 Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.
Trump’s hardline NAFTA stance could benefit Asia 11 Oct 2017 Canada and Mexico oppose a U.S. push to boost North American content for autos and impose a new 50 percent standard for U.S.-sourced parts. The White House says it will reduce the U.S. trade deficit. But the push could increase costs for automakers and force them to move abroad.
Japan is developing a quality-control problem 10 Oct 2017 Kobe Steel admits it sold substandard metals to hundreds of clients. After Takata’s lethal airbags and testing scandals at various carmakers, this is yet another blemish on Japan’s reputation for product quality. Something is going badly wrong with corporate cultures.
Trump’s new Democrat friends put China on notice 26 Sep 2017 The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.
China’s grand plans help Advent to shore in Brazil 8 Sep 2017 The buyout firm is selling port operator TCP in a $1 billion deal. That is a good outcome after a recession and a currency rout, and the target fills a strategic gap for its Chinese state-backed buyer. China’s trading ambitions mean more overseas port deals should follow.
China setbacks spoil Australia’s dairy strategy 5 Sep 2017 Aussie farmers have tried to milk China’s growing hunger for infant formula. Rising incomes and the end of the one-child policy made the $19 bln market seem appetising. As often happens in the People’s Republic, intense competition and tough local rules have soured the outlook.
Viewsroom: Corporate America dumps CEO president 17 Aug 2017 Donald Trump’s inflammatory comments about white supremacists have lost him the support and advice of business leaders, leaving him increasingly isolated and ineffectual. Qatar’s stake in the LSE may prompt Saudi Aramco to shun the exchange for its IPO. Plus: M&A for the MAGA era.
Britain tries Trojan Horse trade tactic in Ireland 17 Aug 2017 The EU wants the Northern Ireland border issue resolved before the UK’s wider exit terms can be agreed. New proposals from London effectively couch Britain’s trade agenda in concern for the peace process. Having Dublin onside raises the chances of Britain getting what it wants.
U.S. blunt force ill-suited to NAFTA intricacies 16 Aug 2017 President Trump’s trade chief demanded changes to reduce the country’s trade deficit at the renegotiation kickoff. He also wants to speed up talks given upcoming elections. The America First tone fails to recognize that Canada and Mexico have leverage, and face pressure at home.
Mexico, Canada miss trick in NAFTA e-commerce fight 14 Aug 2017 Both countries are battling against Trump administration demands to let their citizens import more online goods duty-free. It would hurt their retailers and help U.S. firms like Amazon. But consumers would benefit. Conceding may also help their case in broader NAFTA negotiations.
U.S. sanctions on Venezuela a double-edged sword 31 Jul 2017 Washington is weighing fresh trade retaliation after Venezuela’s constitutional vote. New measures may embolden opposition to President Nicolas Maduro, including from the military. There’s hope for Venezuelans, but U.S. companies like Phillips 66 and Chevron will share the costs.
Shipyard spat shows Macron will put France first 31 Jul 2017 The French president angered Italy and exposed the limits of his ardor for the European Union and free markets by nationalising STX France. The silver lining is that he has a better chance of pushing through reform if he makes a show of protecting jobs and the national interest.
Hadas: What Brexit forecasters got wrong 26 Jul 2017 The UK government’s pre-referendum forecasts about what leaving the EU would mean were gloomy, but not dark enough. What they missed: British inflexibility, the damage from unlinking trade, the challenge of migration and the lingering costs of national self-humiliation.
Saudi oil cut would be a hit-and-hope strategy 24 Jul 2017 The kingdom’s pact with OPEC to damp output is crumbling and has failed to drain inventories, or boost prices, fast enough. One suggestion is to reduce its own exports by as much as a seventh to shock markets into submission. If that fails, though, Saudi would look impotent.