EMEA

Capital Calls: Greek airport IPO

25 Jan 2024

Concise views on global finance: The Athens government is selling 30% of the country’s biggest airport operator, aiming for a market capitalisation of up to 2.4 bln euros.

Commerzbank stake sale would risk M&A impasse

25 Jan 2024

Berlin may consider offloading its 15% stake in the German lender. Deutsche Bank and UniCredit are obvious potential buyers, but higher rates have made a full-blown bank merger less appealing. A market disposal would present prospective suitors with a dilemma.

Capital Calls: SAP, Abrdn

24 Jan 2024

Concise views on global finance: The German software giant is cutting 7% of its workforce, sending shares to an all-time high; outflows at the British fund manager accelerated in the second half of 2023, exacerbating the company’s effort to turn itself around.

ASML is underplaying its strengths

24 Jan 2024

The semiconductor giant kept its 2024 outlook reined in despite hefty quarterly earnings. US and Dutch export controls that affect chipmaking tools have begun to dip into China sales. But a hefty orders backlog and rising chip demand should help the $330 bln group fly higher.

ECB is battling an imaginary wage spiral

24 Jan 2024

European Central Bank President Christine Lagarde is set to hold rates this week because she fears rising salaries will boost inflation. Yet euro zone workers are getting raises of just 3.8%, down from a year ago. Frankfurt may not want to cheer bigger pay, but it can ignore it.

Four-day week is clever fix to economic malaise

24 Jan 2024

Companies including EssilorLuxottica and Panasonic are experimenting with shorter working weeks. Pilot schemes have led to revenue increases, declines in burnout rates and lower churn. It’s an anti-inflationary way to keep staff happy and give them free time to consume more.

Capital Calls: Disney virtual reality

23 Jan 2024

Concise views on global finance: The $174 bln entertainment giant introduced a novel way for consumers to experience its brands through a partnership with Apple. Further connecting the dots between theme parks and the metaverse might bide Iger some time.

Fractured world is changing investment geography

23 Jan 2024

Washington and Beijing’s quasi-Cold War, and rising protectionism, are already hurting foreign direct investment. Though some states are gaining from China’s falling FDI, overall cross-border flows are down. If Trump becomes US president, they will take another hit.

Red Sea oil tension may revive Russia-Saudi spat

22 Jan 2024

Exchanges of fire between Yemen’s Houthis and the US military have hiked costs for Moscow to ship oil via the Suez Canal to China and India. One upshot could be Russia loses market share to Saudi Arabia. That may reopen the sort of tensions that led to the duo’s 2020 price war.

It will take more than Draghi to boost EU growth

22 Jan 2024

Europe can’t decide if it will be more competitive with open markets or heavily protected national champions, and it wants Mario Draghi to pick. Italy’s former PM is more likely to reflect than resolve tensions among members. But the bloc can’t up its game behind closed doors.

Capital Calls: Microsoft’s Russian hacker

22 Jan 2024

Concise views on global finance: The $3 trln tech firm disclosed that a nation-state hack accessed leaders’ email, saying it showed the need for potentially “disruptive” measures. It’s a worrying acknowledgement of the still-vague costs of geopolitical tensions for tech giants.

Davos holds up funhouse mirror to shifting world

22 Jan 2024

Delegates from the Middle East and India made a splash at last week’s World Economic Forum, reflecting their wealth and investment appeal. Europeans and Chinese were subdued. Big Tech looks the winner from AI. This year’s Swiss conflab arguably exaggerated more than it distorted.

Private credit gets the slice-and-dice treatment

19 Jan 2024

Managers like Blackstone and Blue Owl are selling ‘collateralised loan obligations’ backed by privately issued debt. Such alchemy, common in traditional lending, helps lenders raise cheap funds. It also adds complexity, and makes private credit more dependent on flighty markets.

Capital Calls: Birkenstock

19 Jan 2024

Concise views on global finance: The German sandal maker gets a reality check from investors three months after its much-hyped IPO.

Obesity drug firms choose golden goose pricing

18 Jan 2024

Eli Lilly and Novo Nordisk can’t keep up with demand for weight loss drugs, yet they are offering big discounts to those whose insurance won’t help pay. That probably will harvest more eggs over time.

Global risk pile-up penetrates Davos bubble

18 Jan 2024

Nearly 3,000 movers and shakers have converged on the Swiss resort amid crises in the Red Sea, Gaza and Ukraine. In this Viewsroom podcast, Breakingviews columnists discuss how Davos-goers unable to ignore these perils are nervously anticipating another Trump presidency.

Capital Calls: Richemont revival

18 Jan 2024

Concise views on global finance: Shares in the $72 bln owner of Cartier rallied 9% after its quarterly results beat expectations, but concerns over the luxury sector persist.

Athleisure boom offers edge to premium retailers

18 Jan 2024

Wealthy shoppers are splurging on pricey leggings and sneakers despite inflationary pressure. That helps premium brands like $59 bln Lululemon and On while Nike and others deal with inventory pile-ups. If the big players can’t catch up, valuation gaps will only get wider.

BP’s business-as-usual vibe can only go so far

17 Jan 2024

The UK oil major has appointed Murray Auchincloss to the top job. While the ex-CFO seems to want to stick with BP’s current strategy, that might not help its valuation discount. Ways that conceivably could – like spinning off his transition assets – are worth his consideration.

Time for EU to assist its solar panel industry

17 Jan 2024

Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.