Energy

What the Iron Man-like character is claiming for his futuristic automotive company is not unheard of. On a systemic basis, mammoth institutional investment—especially from sovereign wealth funds (SWFs)—is flowing into start-ups and technology-oriented publicly traded companies. In this case, Saudi billions would help Mr Musk escape the pressures of being publicly listed. SWFs have invested large sums into high-growth start-ups promising innovation and financial returns. In fact, just this month, Saudi’s Public Investment Fund (PIF) announced a US$1bn investment in Tesla’s rival, Lucid, and a US$2bn stake in Tesla. The rise in SWF balance sheets and activity is having ramifications on global efforts to be more Silicon Valley-like, and on Silicon Valley itself.

Last week was a trying one for Canadian Prime Minister Justin Trudeau. You may think that I am referring to the imposition of U.S. tariffs on imports of Canadian steel. But Trudeau actually faced a harder issue than the one about how to respond to President Donald Trump’s declaration that trade with Canada posed a threat to U.S. security.

The Europeans seem to understand that the Brexit vote is a wake-up call about dissatisfaction with the E.U. that’s nearly as widespread on the continent as it is in Britain. Germany, in particular, recognizes that unless the E.U. can quickly show a readiness to reform and streamline its bureaucracy, other nations may follow Britain out the door. Senior Fellow for the Future of Diplomacy Project, examines how the Brexit vote compairs to division within the United States.

What does Brexit mean for India? As a former British colony, the country enjoys particularly close economic, trade, political and cultural ties to the United Kingdom. India and South Asia Program Affiliate, Ronak Desai, examines how the relationship could be altered by the British exit from the European Union and possible outcomes.

"The truth is that national security and economic strength are inextricably linked, and Washington needs to pursue both," write Michèle Flournoy and Richard Fontaine. "In siloed government agencies, though, they are too often considered in isolation. America’s economy is the foundation of its military and political power, and boosting growth helps relieve the downward pressure on defense and foreign-affairs budgets that reduces Washington’s ability to shape international events. With the world aflame from Syria to Ukraine, and tensions with China rising, the demand for U.S. power is higher than it has been in decades. The challenge today is supplying it."

CAMBRIDGE – The world's major central banks are currently obsessed with the goal of raising their national inflation rates to their common target of about 2% per year. This is true for the United States, where the annual inflation rate was -0.1% over the past 12 months; for the United Kingdom, where the most recent data show 0.3% price growth; and for the eurozone, where consumer prices fell 0.6%. But is this a real problem?