EMEA

Branding’s corporate titans face moment of truth

22 Nov 2023

Sales volumes at consumer goods giants are falling for the first time this century. Branded goods sell well when quality is tangibly higher and price premiums slim. With neither now the case, the valuation of $296 bln Nestlé, and rivals, may shrink in line with its KitKats.

Capital Calls: Carlyle, Panasonic

22 Nov 2023

Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.

Telegraph M&A twist hinges on Gulf leniency

21 Nov 2023

A vehicle backed by Abu Dhabi and a US buyout firm may take control of the newspaper by paying off the debts of its longtime Barclay family owners. Lender Lloyds would win. Yet it all hangs on potentially risky Gulf loans to the Barclays, whose main business is hardly thriving.

How the West can win the green metals race

21 Nov 2023

China dominates the processing of stuff essential to the energy transition. Rich countries can shift the balance if they accept more mining at home. Most of all, Europe needs to be better at recycling, critical materials expert Gavin Harper explains in the Exchange podcast.

EU fiscal pact ignores green elephant in the room

21 Nov 2023

The bloc’s budget goals failed to keep national debts in check. On average, they are now 83% of GDP, well above target. A revamp is a step forward. Yet with the climate challenge set to strain state finances, new rules alone will do little without more jointly funded investments.

Capital Calls: Monte dei Paschi

21 Nov 2023

Concise views on global finance: The Italian Treasury raised 920 mln euros by selling a 25% stake in the bank on the open market. So far, it looks like a better outcome for taxpayers than submitting to the onerous sale conditions offered by UniCredit in 2021.

Julius Baer hit undermines private-banking premium

20 Nov 2023

The pure-play Swiss wealth manager fell 12% after a profit warning, prompted partly by sharp losses against its credit portfolio. Investors didn’t sign up for that kind of risk. The private bank’s top-tier valuation may have to shrink.

Bayer drug fail is symptom of growing breakup pain

20 Nov 2023

Shares in the 33 bln euro group fell 20% after it aborted a late-stage trial. Given drugs regularly fail, that’s excessive. Instead, investors’ main concern could be that a grim pharma outlook and litigation risk in Bayer's seeds unit mean a planned split may release less value.

UK pay-later fiscal giveaway amounts to self-harm

20 Nov 2023

Faster growth and inflation may gift Rishi Sunak a 13 bln pound war chest ahead of Wednesday’s budget update. But that’s only thanks to optimistic math. If Britain’s prime minister opts for fiscal fireworks, he may torch public spending and singe Britain’s prospects.

World Bank and kin head for a $100 bln cash call

20 Nov 2023

Scaling up the Washington-based lender and other multilateral banks makes geopolitical sense and helps fight climate change. Sweating their balance sheets is a start. But eventually shareholders including the US will have to overcome domestic hurdles and put up more capital.

With Saudi, India can push new cricket boundaries

20 Nov 2023

India is on course to dominate the sport despite its defeat in the cricket World Cup final at the weekend. The kingdom has discussed a deal valuing the Indian Premier League at $30 bln, per Bloomberg. It’s a wise departure from Riyadh’s heavy-handed approach to sports investing.

Capital Calls: Gap earnings

17 Nov 2023

Concise views on global finance: Investors rewarded improvements at the apparel company's Old Navy brand by sending shares up over 30%. Yet overall third-quarter results remain muted. It’s a promising sign for new boss Richard Dickson, even if the bar was low to begin with.

Payments sector comedown creates opening for M&A

17 Nov 2023

The once-hot industry has slumped amid rising competition and a possible regulatory clampdown. For online specialists like $34 bln Adyen, the solution is to boost their customer offerings by buying startups. Older players like Nexi and Worldline, meanwhile, are ripe for mergers.

Multipolar world opens up surprising safe havens

17 Nov 2023

Despite geopolitical challenges the United States remains the world’s largest net debtor, owing the rest of the globe $18 trln. Yet increasing dependence on overseas equity investors makes it vulnerable. If the tide turns, fund managers may be better off in emerging markets.

Britain solves half of its wind power problem

16 Nov 2023

After a humiliating failed auction, the UK is hiking green energy subsidies. That will draw bidders, and the resulting power should still be cheaper than gas. But to hit a target of 50 GW of offshore wind by 2030, PM Rishi Sunak will need to allot more cash in new bidding rounds.

Mars’ posh pivot comes with a rich price

16 Nov 2023

The privately held Snickers maker is buying upmarket British brand Hotel Chocolat for $662 mln. Its premium products may benefit as consumers move away from cheap sugar-rich snacks. But UK shoppers are stretched, and Mars will need rapid growth to make an appetising return.

Capital Calls: Walmart, HelloFresh

16 Nov 2023

Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.

Legal blow makes Germany and Europe sicker

15 Nov 2023

Berlin’s top court blocked the government’s use of creative accounting for investments. That may jeopardise Chancellor Olaf Scholz’s $65 bln growth fund and mean less money for the energy transition. Europe’s biggest economy may also want more fiscal rigour from its EU peers.

Siemens Energy solves just one of its many issues

15 Nov 2023

CEO Christian Bruch got 12 bln euros of financial guarantees, including from the German state, which fixes the turbine maker’s urgent problem. But he now faces dividend and bonus restrictions. And reviving the struggling wind-power unit will involve racking up yet more losses.

Renault electric acceleration can swerve IPO

15 Nov 2023

The French carmaker is eyeing 25 bln euros of revenue in 2031 for its battery ride unit Ampere. Capturing the full value of that through an IPO may be tricky in the short term given a sluggish EV market. A listing would be a distraction, and Renault doesn’t really need the money.