EMEA

Banks win hollow victory over would-be disrupters

16 Feb 2024

Supermarket giant Tesco’s ditched effort to build a UK retail bank follows similar abortive attempts by telecom groups and fintech startups. Regulation and rising technology costs are partly to blame. But banks’ persistent poor returns are the most effective barrier to entry.

Deal famine is driving private equity evolution

15 Feb 2024

M&A activity fell 30% in 2023 and this year is off to a relatively slow start. In this Viewsroom podcast, Breakingviews columnists discuss how a dearth of deals is spotlighting a shift of focus among traditional buyout houses like KKR and Carlyle into areas like private credit.

DSM’s China de-risking plan hinges on booster shot

15 Feb 2024

Shares in the $30 bln Dutch firm surged 14% on plans to hive off its unit that makes vitamins for cattle. DSM is right to steer away from a business hurt by Chinese competition. But management needs it to recover to justify investors’ enthusiasm.

UK growth alarm is best focused on the long term

15 Feb 2024

The shrinkage in Britain’s economy at the end of 2023 belies an improving climate. With falling inflation, low unemployment and a stirring housing market, rates may soon fall. Yet pre-election fiscal giveaways may impede a fix to the real issue: ongoing poor productivity growth.

Capital Calls: Volkswagen in Xinjiang

15 Feb 2024

Concise views on global finance: The German carmaker is discussing its future in the troubled Chinese province with state-owned partner SAIC. A slowdown in the domestic auto market and the rise of exports could make the pair’s potential retreat from Xinjiang easier to bear.

Heineken dilutes beer’s merrier future

14 Feb 2024

The $54 bln group’s higher prices led to lower volumes, at odds with Carlsberg’s cheerier numbers. Diageo reckons drinkers are shifting from spirits to beer, which should help brewers. Still, without clear evidence investors may not price in the growth a windfall should imply.

Capital Calls: Lyft

14 Feb 2024

Concise views on global finance: The US ride-hailing firm mistakenly forecast 500 basis points of margin improvement for 2024, causing its stock to surge some 60% before it came back to earth.

Capital Calls: TUI decamps

13 Feb 2024

Concise views on global finance: Europe’s largest travel firm is encouraging investors to vote in favour of cancelling its London listing, but the UK need not mourn the loss.

Arm’s weirdly high valuation has legs

13 Feb 2024

The $150 bln chip designer’s shares have doubled since last week’s positive outlook. The good news supports a higher valuation, but Arm’s current level is excessive. Yet with a small free float and majority owner SoftBank unlikely to sell any time soon, it may stay in the clouds.

The green agenda’s best shot at a revival

13 Feb 2024

Economic distress prompted by globalisation undermines support for the energy transition, climate change economist Valentina Bosetti tells The Exchange podcast. That matters as key US and EU elections approach. Using proceeds from carbon taxes to address inequality is paramount.

Gaming suitors have a window in which to pounce

13 Feb 2024

After a ropey 2022, the $180 bln sector grew less than 1% last year. Former stars like Ubisoft have been cutting staff, and their shares now look cheap. That gives perennial suitors who think gaming can recover – like Netflix, Disney and Saudi Arabia – a chance to bulk up.

Capital Calls: Temu’s spending

12 Feb 2024

Concise views on global finance: The Chinese shopping app’s Super Bowl commercial is part of a broader effort to win market share. It’ll help companies like Meta, but Temu now has a chance to muscle in on Amazon’s turf and force the e-commerce giant to compete.

PGA political golf drama is Saudi’s Trump card

12 Feb 2024

Senators accused former Citi banker Michael Klein and other consultants of siding with PIF over an agreement with the PGA and its investments in the US. While the golf tie-up remains in flux, political scrutiny is intensifying. A delay could work in the Saudis' favor.

Europe’s wilting bourses get fresh cause to unite

12 Feb 2024

The likely de-listings of Italy’s Saras and Tod’s add to a wider exodus from euro zone stock exchanges. Part of the problem is a lack of new European companies to replace them. But Europe could also help itself if its equity market rules and trading were less fragmented.

Ignoring migration’s roots will cost the West dear

12 Feb 2024

Politicians in the US and Europe are devoting much energy to stopping illegal migrants. But this will achieve little unless they also tackle the drivers of migration: poverty, conflict, and climate change. Otherwise, politics in the rich world will become increasingly toxic.

Hermès’ winning style is hard to replicate

9 Feb 2024

The French seller of $10,000 Birkin bags has outshined rivals, shrugging off inflation fears and a slowing China. Elite shoppers who see its high-end leather products as a store of value create resilience. Gucci-like brands, more exposed to fashion moods, look more fragile.

UK $13 bln cardboard saga has durable M&A endgame

9 Feb 2024

Three years after its last approach, $7.4 bln Mondi wants to merge with $5.4 bln DS Smith. Amid slowing consumer demand, there’s more strategic and financial logic in uniting the UK-listed packagers. That doesn’t mean there won’t be a squabble over how they’re scrunched together.

Oil investors are adrift in Red Sea rip currents

9 Feb 2024

Crude prices at around $80 a barrel are lower than in early October despite conflict in Gaza, attacks on shipping vessels off Yemen, and US-Iran tensions. That reflects expectations of weak demand and ample supply, underpinned by lax sanctions. All three could soon change.

Capital Calls: L’Oréal

9 Feb 2024

Concise views on global finance: The French cosmetics giant suffered from the same China pain as Shiseido and Estée Lauder, but it is coping better than its Japanese and US rivals.

BHP and Rio take competition out of going green

9 Feb 2024

The giant miners are teaming up to try and decarbonise steel production. Cutting the 8% of global emissions the current process belches out is key to saving the planet. The collaboration can help Australia keep up too. It makes this unusual setting aside of rivalry doubly smart.