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Breakingviews Headlines

It’s time to rediscover the importance of interest

Inflation is back, and along with it a widespread obsession about the future direction of interest rates. This is hardly surprising. In the past, a dose of tight money has brought prices under control. However, interest’s role in ensuring price stability is just one of its many functions. Our neglect of those other functions explains why the financial markets are in such a jumpy state today.

Robinhood’s reversal, Russian oil cap: podcast

The digital brokerage is worth less than a quarter of its $32 bln IPO value. In this Viewsroom podcast, Breakingviews columnists argue that its $7 bln cash pile and ample user base make it an attractive target. Also, Western leaders’ plan to restrict funds to Moscow may backfire.

Bankers’ next pitch is corporate finance fiction

It’s not going to be a great year to be an investment banker. Fees from advising on mergers and initial public offerings slumped in the first half of 2022, while rising interest rates and jittery debt markets are inhibiting private equity buyers. So bankers need to come up with a new way to win business. There’s an opportunity preparing chief executives still reeling from a global pandemic and the invasion of Ukraine to deal with the next calamity.

China's property bottom leaves few standing tall

Few are standing tall in the troubled world of Chinese real estate. China Vanke, the second-largest developer by sales, reckons parts of the housing market are recovering. But weaker rivals are struggling and a rebound requires access to borrowing markets where investors remain sceptical.

Texas becomes Tesla’s new China

China’s President Xi Jinping and Texas’s Governor Greg Abbott have but one thing in common: their relationship with Tesla’s Chief Executive Elon Musk. The U.S. state has been good to the electric-car maker, much like the People’s Republic. Musk, who has also made a play for social media firm Twitter, will likely remain a dutiful friend of both.  

Saving energy now is an EU no-brainer

The European Union’s gas headache hasn’t gone away. Despite strong progress in hiking liquefied natural gas (LNG) purchases, the bloc is some way off its self-imposed year-end target of cutting Russian gas imports by two-thirds, or about 100 billion cubic metres (bcm). That leaves key member states like Germany vulnerable to an economic shock should Russian President Vladimir Putin turn off the taps. They shouldn’t wait until the weather turns cold to implemen

Japan’s activists chip away slowly but unsurely

Companies like to tout milestones, but not necessarily the sort at scandal-plagued Toshiba. The $18 billion industrial conglomerate’s shareholders on Tuesday voted to add representatives from Elliott Management and Farallon Capital to its board, a landmark in Japan’s acceptance of pushy investors. The slog involved with such campaigns, however, makes faster progress tough.

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Politics News

U.S. Supreme Court limits federal power to curb carbon emissions

The U.S. Supreme Court on Thursday imposed limits on the federal government's authority to issue sweeping regulations to reduce carbon emissions from power plants in a ruling that undermines President Joe Biden's plans to tackle climate change and could constrain various agencies on other issues.