EMEA

Copper’s green step change is an uphill struggle

9 Jul 2024

Supplies of the red metal have to motor if the world is to adequately decarbonise. In this Exchange podcast Tae-Yoon Kim, senior energy analyst at the International Energy Agency, lays out the challenges that need to be overcome if the private sector is going to make that happen.

Drugmaker’s US listing journey starts with failure

9 Jul 2024

Shares in $2 bln Indivior, which in June switched its primary venue from London to New York, fell 42% after flagging slower opioid-treatment sales. Investors may fear that CEO Mark Crossley took his eye off the ball. With little broker coverage, it risks becoming an orphan stock.

BYD’s overseas road trip offers EU new tariffs map

9 Jul 2024

The $94 bln EV maker has just opened a factory in Thailand and is spending $1 bln to build one in Turkey. Both countries agreed preferential terms for Chinese carmakers’ imports in exchange for local production. These deals might inspire Brussels to re-engineer its own policies.

Big Beer’s low-alcohol Plan B has too much froth

9 Jul 2024

Carlsberg, AB InBev and Asahi have set toppy targets for their teetotal products. Health concerns and Gen Z’s aversion to alcohol imply that’s a safe bet. But at $13 bln the market is still puny – and if the likes of Coca-Cola muscle in there will be a smaller barrel to share.

Carlsberg soft-drink deal packs an appealing punch

8 Jul 2024

The $18 bln brewer is scooping up J2O-maker Britvic for $4.2 bln. The Danish buyer’s shares have slumped since deal talks started, but investors’ nervousness is overdone. Expanding into non-alcoholic drinks makes sense, and the returns seem reasonable despite a fizzy deal price.

Global economy finds new ways to keep growing

8 Jul 2024

Despite fears of a slowdown, world GDP is expanding at 3.5% a year, faster than in 2023. As the US engine loses thrust, Europe and emerging markets are picking up. A sluggish China and geopolitical confrontations are risks. But for now, investors can enjoy a Goldilocks moment.

French election shock puts Macron in new quandary

7 Jul 2024

The left will dominate France’s parliament after Sunday’s runoff, while Marine Le Pen’s far right suffered a surprise setback. President Emmanuel Macron will struggle to build a centrist coalition. But appointing a left-leaning prime minister would leave investors on edge.

Northvolt flags European batteries’ growing pains

5 Jul 2024

The $12 bln Swedish maker of devices to power electric cars has lost a contract with BMW, one of its own backers. Brussels would love domestic players to cut European automakers’ reliance on China. Yet the EU’s conflicting strategies and foreign competition mean progress is slow.

Labour ‘open for business’ stance faces early test

5 Jul 2024

New UK PM Keir Starmer wants to boost growth and attract capital. He must balance those priorities with political anxiety about inbound investment. Companies like Royal Mail and Thames Water will show where he draws the line, and how he wields extensive powers to block M&A.

Shein maps out how to charm the world in India

5 Jul 2024

The $63 bln fast fashion giant is relaunching four years after it was banned, this time in an alliance with Mukesh Ambani's Reliance. If Shein can claw its way back into a country that aggressively curtailed Chinese interests, partnerships may be the way forward elsewhere too.

Labour’s election win brings power and pitfalls

5 Jul 2024

Keir Starmer is Britain’s new prime minister after his Labour Party won over 410 seats in Thursday’s vote. The electoral landslide gives clarity, a mandate to boost growth and potentially a path to tax wealth. But self-imposed constraints mean change may be too gradual.

Why AI may fail to unlock the productivity puzzle

4 Jul 2024

The world’s richest economies are grappling with slowing growth in output. Many investors believe artificial intelligence can provide a much-needed boost. But four features of the technology suggest the benefits will be limited – and might even achieve the opposite outcome.

Smith & Nephew faces long and painful activist fix

4 Jul 2024

Cevian has taken a 5% stake in the $11 bln underperforming London-listed medical equipment maker. Curing its depressed share price will require deep operational surgery. While that may take time, a breakup could be a second treatment further down the line.

UK elections herald return to tarnished stability

4 Jul 2024

Polls suggest voters will hand Rishi Sunak’s Conservative Party a historic defeat. In this Viewsroom podcast, Breakingviews columnists discuss how a new government might pick up the pieces amid the legacy of a now-immutable Brexit and political turmoil engulfing global peers.

Bosch’s Whirlpool bet may end in rinse cycle

4 Jul 2024

The German group is eyeing the struggling $6 bln US home appliance maker, Reuters says. Expanding stateside makes sense given growth in Bosch’s main European units is slowing. But its target may be just as tricky if interest rates and inflation keep hammering US consumers.

Data centre boom reveals AI hype’s physical limits

4 Jul 2024

The investor frenzy over artificial intelligence assumes there will be enough infrastructure to support apps like ChatGPT. But a $1 trln rush to build data centres faces planning restrictions and energy constraints. That will limit processing power and push up costs for users.

Middle East reignites Santos’ M&A pipe dreams

4 Jul 2024

Shares of the $17 bln Aussie driller jumped on a Bloomberg report that Aramco and ADNOC are each studying bids. That may yet lure in BP, Chevron and others. But the return on investment remains as ho-hum as when Santos CEO Kevin Gallagher opened the door to a deal last year.

EQT’s $3 bln gaming play hits the right buttons

3 Jul 2024

The Swedish buyout shop looks set to clinch video game services group Keywords. The target’s business of translating games like ‘Clash of Clans’ for a wide range of clients helps insulate it from an industry rut. The chunky 96% premium can also make it a high scorer.

Le Pen will fail as star of Meloni in Paris

3 Jul 2024

Markets are relatively calm about the prospect of a far-right government after Sunday’s second electoral round. They may believe that Marine Le Pen’s party would mimic the apparent moderation of Italy’s Giorgia Meloni. Her fiscal plans, inexperience and beliefs suggest otherwise.

Guest view: Blame poor audits on absent investors

3 Jul 2024

High-profile company failures show audit firms are failing to scrutinise corporate accounts. But shareholders are also falling short, says Natasha Landell-Mills of Sarasin & Partners. They can do more to register their displeasure with weak accountants and board members.