EMEA

Capital Calls: Roche, Brookfield/Origin

4 Dec 2023

Concise views on global finance: The $224 bln Swiss drugmaker is splurging $2.7 bln on obesity drug developer Carmot; the Canadian investment firm’s joint $13 bln bid for Origin Energy has failed. The trick now is to show what lessons it’s learned from its 16-month-plus campaign.

Imagine a better climate pact than COP

4 Dec 2023

The UN summit in Dubai, known as COP28, is unlikely to achieve much because all 197 states need to agree. If a few powerful nations set bold targets and then coaxed others to follow suit, progress would speed up. That will not happen unless the US and China take the lead.

 

UAE green fund risks missing its poor-nation mark

1 Dec 2023

The COP28 climate-summit host unveiled a $30 bln vehicle featuring Brookfield, BlackRock and TPG to help cut emissions. If the firepower goes to developing countries, it will plug big financial gaps. If wealthier nations are the main recipients, it’ll be a squandered opportunity.

UniCredit G-SIB downgrade tests CEO animal spirits

1 Dec 2023

The Italian lender has lost its global too-big-to-fail designation. Yet the Bank of Italy wants UniCredit to hold even more capital than before. At least with over 10 bln euros of spare cash, Andrea Orcel has plenty of M&A firepower to buy his way back to the big league.

Pound’s strength is less sterling than it looks

1 Dec 2023

The currency was up 4% versus the dollar in November after the UK’s fiscal update and because traders think monetary policy will remain tight in 2024 to curb inflation. Yet a weak economy may require lower borrowing costs. Forex markets can brace for a reversal of current trends.

Bank of England drags Bagehot into the shadows

1 Dec 2023

The 19th-century economist recommended lending freely to stem financial panics. Now watchdogs are pondering how to apply this principle to financial markets dominated by bond investors and unregulated entities. The UK central bank has an idea, but it only works in some cases.

Capital Calls: Saks and Neiman Marcus

1 Dec 2023

Concise views on global finance: The two luxury retailers are once again contemplating a merger. Fickle consumers, even for high end items, make the marriage ideal.

OPEC+ is a weird club for Brazil to want to join

30 Nov 2023

Latin America’s largest economy is mulling joining the 23-strong oil producer group. But OPEC+’s latest 2 mln barrels of daily cuts are not needed to balance the market, will rile the US at a sensitive time, and may increase internal strife. It seems more like a club to leave.

Capital Calls: ASML’s new CEO

30 Nov 2023

Concise views on global finance: Peter Wennink has delivered a 1,000% shareholder return during his tenure at the Dutch group that is a key player in chip manufacturing. His successor, Christophe Fouquet, faces a more challenging future.

Romanian telco upstart will be M&A party pooper

30 Nov 2023

Originally a mobile provider for Bucharest expats, Digi Communications is expanding across Europe. It is taking market share thanks to a low-cost model and as regulators force merging rivals to shed assets. A wave of consolidation in Spain and elsewhere may yield some surprises.

Saudi’s Indian cricket play works for both sides

30 Nov 2023

The kingdom is looking to invest as much as $5 bln in the Indian Premier League. In this Viewsroom podcast, Breakingviews columnists discuss what it means for the sport and how it sizes up against Riyadh’s growing global sporting ambitions.

 

LME win leaves one tricky question unanswered

29 Nov 2023

A court backed the London Metal Exchange’s decision to cancel $12 bln of nickel trades, rejecting a challenge by fund Elliott. The HKEX-owned venue has improved its standards. But the verdict does not address its conflict of being both a regulator and a commercial player.

Capital Calls: Ferrovial/Heathrow

29 Nov 2023

Concise views on global finance: The Spanish infrastructure giant has offloaded its final 25% stake to Saudi Arabia’s sovereign wealth fund and private equity group Ardian for 2.4 bln pounds, but a chunky premium means the new owners should hope for a smoother ride.

Richemont digital strategy goes back to square one

29 Nov 2023

The Swiss group’s sale of its YNAP online platform is in doubt due to troubles at US-listed buyer Farfetch. Extracting itself from the deal, though potentially messy, looks the best option for the Cartier owner. Yet that still leaves Chairman Johann Rupert with an old problem.

EU watchdogs muck up Amazon’s messy iRobot cleanup

28 Nov 2023

The European Commission says the e-commerce giant’s $1.4 bln takeover of the Roomba maker could shut out robot-vacuum rivals. Trustbusters are mainly concerned about Amazon’s market clout. Yet if the deal collapses, iRobot shareholders will suffer more downward suction.

Capital Calls: Barclays, Rolls-Royce

28 Nov 2023

Concise views on global finance: Initial glimpses of the $27 bln UK bank’s new plan suggest it won’t gee shares that trade at 0.4 times tangible book value; the engine-maker’s CEO has set out bold profit targets as part of its strategy overhaul.

ADNOC German oil deal has bad timing, good logic

28 Nov 2023

Abu Dhabi’s energy giant may bid for BASF-owned Wintershall, in a deal worth $11 bln. As the UAE prepares to host the COP28 climate shindig, that’s a bad look. But buying the German group’s pipeline network may suit ADNOC’s wider aim to bulk up in European petrochemicals.

COP28’s big dilemma: fossil fuel cuts, or fudges

28 Nov 2023

The success of the Dubai climate shindig rests on how much it slashes emissions via cuts to oil production, and how much it relies on carbon storage or removal. In this Exchange podcast, Energy Transitions Commission chair Adair Turner warns against relying on the latter.

EU is ill-equipped to meet growing global threats

27 Nov 2023

The bloc would be more effective in a dangerous world if its 27 members could make decisions more quickly. The snag is that nationalistic currents make countries even more reluctant to give up their vetoes. It is not clear if the European Union can find a way to square the circle.

Capital Calls: Amazon shipping

27 Nov 2023

Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.