EMEA

UK finance watchdog finds rare area to act tough

16 Mar 2021

The Financial Conduct Authority launched its first criminal case against a bank for allegedly failing to spot suspicious transactions. The humiliation for NatWest may be as damaging as any eventual fine. Harsher enforcement is reassuring given post-Brexit deregulation elsewhere.

Stripe’s $95 bln pop raises bar for payments hype

15 Mar 2021

The privately held group run by the Collison brothers raised money at almost triple its last valuation. It seems rich even next to listed peer Adyen. Investors in the companies are betting on a decade of breakneck growth. Rising competition means they can’t all be winners.

Capital Calls: Elon Musk, AstraZeneca

15 Mar 2021

Concise views on global finance in the Covid-19 era: The electric-vehicle maker’s jocular new title of “Technoking of Tesla” tests the theory that deeds matter more than words; fears over the drugmaker’s vaccine risk further delaying the re-opening of Europe’s economy.

Danone CEO exit gives France governance upgrade

15 Mar 2021

Boss Emmanuel Faber is leaving the 42 bln euro yoghurt maker after pressure from activist investors. It shows even French companies once declared strategic by the government are not safe from uppity shareholders. Underperformers whose chair is also CEO are now potential targets.

Axa delivers kick up derrière to green investing

15 Mar 2021

The French group will no longer insure RWE or invest in its shares due to its coal exposure. It’s harsh on the German utility, which also has extensive wind and solar power assets. But it may be a wakeup call for other big companies with less impressive decarbonisation plans.

Review: Fund manager’s fall reveals larger flaws

12 Mar 2021

Neil Woodford was once one of Britain’s best-known stock-pickers. Owen Walker’s “Built on a Lie” catalogues his spectacular demise, but also explains how changing pensions and supine regulation enabled his rise. Ultimately, the saga is another argument for index funds.

Capital Calls: T-Mobile US, Ulta Beauty

12 Mar 2021

Concise views on global finance in the Covid-19 era: The U.S. telecom is benefiting from its merger with SoftBank’s Sprint; the U.S. cosmetics retailer revealed a tidy succession plan, but its business still faces lingering pandemic side-effects.

SoftBank financial innovation fails at Greensill

12 Mar 2021

The Japanese investor’s Vision Fund seems to love byzantine funding structures as much as disruptive technology. Its involvement with the supply-chain lender, which supported other investees, has backfired. It’s another cautionary tale for the ex-bankers in the fund’s ranks.

VW drives for second place in Tesla-led tech race

12 Mar 2021

Boss Herbert Diess wants to steer the $128 bln German automaker into the thick of the fast-growing market for in-car software. Closing the gap on Elon Musk’s outfit will be tough. But even a podium finish behind the leader would jump-start Volkswagen’s analogue valuation.

Lagarde’s yen for consensus will be stress-tested

11 Mar 2021

The ECB will step up the pace of bond-buying to combat a rise in yields. Moving sooner wouldn’t have allowed President Christine Lagarde to get the governing council’s green light. Fast-moving markets may require speedier reactions than her instinct for forging unity permits.

BNP Exane deal takes equities dream an inch closer

11 Mar 2021

The $78 bln French lender will buy the rest of the brokerage it doesn’t own. The deal offers savings and better research to sell to clients. But CEO Jean-Laurent Bonnafé’s hope of challenging dominant U.S. banks requires other rivals to exit the business, like Deutsche.

Viewsroom: Greensill/Credit Suisse, GE, Diversity

11 Mar 2021

Big names in finance, like Credit Suisse and tycoon Sanjeev Gupta, are suffering collateral damage from the UK supply chain lender’s collapse. The sale of aircraft leasing brings GE closer to CEO Larry Culp’s light-bulb moment. And working from home risks a diversity disaster.

Capital Calls: Digital art

11 Mar 2021

Concise views on global finance in the Covid-19 era: A blockchain-protected work by Beeple sold for $69 million at Christie's.

South Africa enters greener bond-market crosshairs

11 Mar 2021

With 90% of its power coming from coal, the Rainbow Nation is one of the worst CO2 emitters. Mining’s political heft also means foot-dragging on climate policy. With big external funding needs, the kick from bond investors when they flick the green switch will hurt hardest.

Veolia gambles on Suez shareholder showdown

11 Mar 2021

The French group sweetened its 11.3 bln euros bid by pledging not to dismantle its target’s domestic waste and water business. Handing the unit to infrastructure fund Meridiam should reassure politicians and unions. All Suez CEO Bertrand Camus can do is haggle for a higher price.

Boris Johnson will feel Gupta steel jitters too

10 Mar 2021

GFG Alliance says it has adequate funding, but key financing partner Greensill is collapsing. If Sanjeev Gupta’s industrial empire were to struggle, the UK leader has little economic reason to save its British operations. Yet domestic politics may still force him to step in.

Capital Calls: McKinsey, Celebrity SPACs

10 Mar 2021

Concise views on global finance in the Covid-19 era: McKinsey’s new boss isn’t new enough; the SEC tells investors to be careful of celebrities bearing SPACs.

Greensill exposes perils of Credit Suisse strategy

10 Mar 2021

The supply-chain financier’s collapse affects almost every division of the Swiss bank. While the financial hit appears manageable, cooperation between its fund, wealth and lending arms increases risk. That’s worrying as CEO Thomas Gottstein’s growth plans hinge on collaboration.

SocGen’s sober revamp could use Russian vodka shot

10 Mar 2021

The 19 bln euro lender is overhauling its retail business to boost profitability. A bolder move would be to sell the Russia unit, which might fetch up to 2.9 bln euros from a rival like Gazprombank. CEO Frederic Oudea could then focus on more lucrative eastern Europe and Africa.

Strong chairman is best way to fix BT board mess

9 Mar 2021

The UK telecom operator is seeking a replacement for Chairman Jan du Plessis, who stepped down under pressure from CEO Philip Jansen, Sky News reported. The fracas comes at a critical time for BT. Investors, directors and Jansen himself would benefit by recruiting a heavy hitter.