July, 2018

• 22 July

  The false promise of economic nostalgia

  

  We Americans have long been obsessed with economic growth — “pros- perity” in everyday lingo. The idea that we have some sort of special aptitude for invention, wealth creation and economic self-improvement is part of our imagined national character. It’s who we are. Not only that, but prosperity plays a crucial political role. It enables us to raise living standards ...

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• 22 July

  BMW’s driving into a brave new world

  

  The escalating trade war is forcing automakers to rethink how they do business. BMW AG has just put its chips on the table in China. The German company could become the first foreign carmaker to own a majority stake in a Chinese joint venture as it mulls a new ownership structure for its arrangement with Brilliance China Automotive Holdings Ltd., ...

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• 22 July

  The index funds are going to be just fine

  If something cannot go on forever, well then, it will eventually stop. So said economist Herbert Stein when he made this obvious but insightful observation. Trees do not grow to the sky, and matters that are truly unsustainable eventually come to an end. The most recent example of something that can’t go on forever has been the inflows into low-cost, ...

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• 22 July

  Trump’s trade policy goes from bad to worse

  Announcing plans for additional tariffs on $200 billion of imports, the Trump administration has taken another dangerous step toward escalating its trade war on China. China’s response, so far, has been measured, and that’s encouraging. The US Congress has managed only the feeblest gesture of protest, and that’s disgraceful. The president has told US Trade Representative Robert Lighthizer to draw ...

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• 22 July

  Apple deserves a fine from the European Union, too

  

  The European Commission had solid antitrust reasons for fining Google 4.3 billion euros ($5 billion) for violations including the bundling of certain apps with the Android operating system — and for not going after Apple for similar behaviour. Yet, from a consumer’s point of view, Apple should get the same kind of attention. The most important infraction by Google in ...

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• 22 July

  Unilever still vulnerable to a Kraft-like proposal

  

  When a company vehemently rejects an unsolicited bid approach, it needs to convince investors that it made the right decision. Unilever, which saw off a $143 billion approach from Kraft Heinz Co 18 months ago, is doing just the opposite. The company reported second quarter organic sales growth below analysts’ expectations. There was some better news on the underlying operating ...

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• 22 July

  India’s dirty secret is an oil market headache

  

  What do you do when your dumping ground cleans up its act? That’s the problem confronting the oil market as the global shipping industry starts implementing regulations to limit its consumption of sulfur, a common impurity in crude that can cause respiratory problems and acid rain when it’s burned. As we saw in a column, rules on sulfur content coming ...

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• 22 July

  Bank Indonesia stays hawkish as it keeps key rate on hold

  

  Bloomberg Indonesia’s central bank left its benchmark interest rate unchanged after three hikes in a row helped to stabilize the currency in Southeast Asia’s biggest economy. The seven-day reverse repurchase rate was held at 5.25%, in line with forecasts of 25 of 28 economists surveyed by Bloomberg. Governor Perry Warjiyo said the policy stance remains “hawkish” with the central bank’s ...

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• 22 July

  BOJ’s Kuroda keeps mum on possible steps to soften easing pain

  

  Bloomberg Bank of Japan (BOJ) Governor Haruhiko Kuroda stuck to the bank’s playbook, declining to comment on reports that policy makers are considering measures to soften the side effects of their aggressive monetary easing campaign. Remarks on the issue wouldn’t be appropriate given the proximity of the bank’s monetary policy meeting, Kuroda said, adding that any policy decision will require ...

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• 22 July

  Lloyds payment protection charge mounts in Q2

  

  Bloomberg Lloyds Banking Group Plc may set aside hundreds of millions of pounds in the second quarter to compensate customers improperly sold payment protection insurance as claims continue to flood in. The redress costs will add to about 18 billion pounds ($23 billion) already booked by Britain’s biggest mortgage lender since the start of the scandal. Analysts at Morgan Stanley ...

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