EMEA

Less ethical US foreign policy requires new logic

18 Sep 2023

When Joe Biden took office he promised to put human rights at the heart of international affairs. The president is now cosying up to regimes like Vietnam to contain China and build new supply chains. That makes sense, but Biden should explain his approach better, says Hugo Dixon.

Guest view: Bank balance sheets hide climate risks

15 Sep 2023

While regulators fret about lenders’ exposure to higher interest rates, the dangers from global warming are building in the shadows. Unless banks reset their financial statements, investors and the planet will be worse off, writes Natasha Landell-Mills of Sarasin & Partners.

Capital Calls: Ford’s threats

15 Sep 2023

Concise views on global finance: The $50 bln automaker’s boss suggests that a strike could have dire consequences. The problem is that workers can see the $10 billion in cash sitting on Ford’s balance sheet.

AstraZeneca succession sickness demands urgent fix

15 Sep 2023

The drug giant’s shares lost $9 bln after a report that Pascal Soriot will retire next year. His track record of drug discovery, savvy dealmaking and a 448% return since 2012 suggest investors are right to be worried. A clearer plan for his replacement would help.

Lazard’s new CEO dares to evoke Bruce Wasserstein

14 Sep 2023

Peter Orszag aims to double revenue to about $5 bln by 2030 while delivering at least a 10% annual shareholder return. The firm’s recent history suggests the plan is bold. But it’s as good a time as any to heed the advice its former boss famously gave clients: “Dare to be great.”

BP CEO exit raises strategy and board questions

14 Sep 2023

Bernard Looney resigned after he failed to disclose past relationships with staff. In this Viewsroom podcast, Breakingviews columnists debate what that means for the oil giant’s commitment to net zero, and whether BP’s board did all it could have done.

ECB’s rear-view policy risks crashing the economy

14 Sep 2023

Fears of stubbornly high consumer prices prompted President Christine Lagarde to push rates to a record 4% on Thursday. Yet the central bank admits inflation will be around the 2% target by 2025. The bloc’s growth is already stagnating. The latest action will worsen its plight.

Capital Calls: Deliveroo

14 Sep 2023

Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.

French iced tea feud will inflame grocer wars

14 Sep 2023

Carrefour is warning customers that suppliers like Unilever are raising prices on drinks and other goods by shrinking packages. The move will keep the government on side in its war against inflation. But smarter shoppers may hunt for bargains and go to discounters Lidl and Aldi.

BP succession fail puts spotlight on its board

14 Sep 2023

Chair Helge Lund and his colleagues could have lined up a replacement for now-departed boss Bernard Looney when issues over his conduct surfaced last year. They didn’t. Before rushing to appoint a new CEO at the $110 bln oil group, they should interrogate their own performance.

China’s EV makers would steer around EU roadblock

14 Sep 2023

A Brussels probe may mean hefty tariffs on battery-powered cars imported from the People’s Republic. BYD, Nio and peers could start making them in the bloc, which accounts for a quarter of global EV sales. Focusing on Asia and Latin America, though, would make more sense.

Birkenstock risks stepping into fashion fad trap

13 Sep 2023

Riding a sales boost from the Barbie movie, the German footwear brand has filed for a US listing. Its potential $8 bln valuation rests on shoppers continuing to love its iconic sandals. For IPO-hungry investors, Dr. Martens’ crushed bling ambition is a cautionary tale.

Tariffs unfit to solve EU’s Chinese EV puzzle

13 Sep 2023

Ursula von der Leyen’s new anti-dumping investigation could result in punitive duties on China-made electric vehicles. But penalties are a bad fix for the EU’s green push. The bloc still needs the People’s Republic to help it phase out car pollution – and to buy Europe’s exports.

Capital Calls: Citi shakeup

13 Sep 2023

Concise views on global finance: Boss Jane Fraser is restructuring divisions and slashing jobs, calling the moves the most “consequential changes” to how the mega-bank has been organized in 20 years. Given its tortured history, that's a big claim to live up to.

Erdogan’s orthodoxy creates new economic problems

13 Sep 2023

Turkey’s president finally ditched his love of low interest rates and pledged to curb inflation, currently at 59%. But Tayyip Erdogan still needs growth and will boost spending to get that. Soaring budget deficits and a weak currency will keep the economy under pressure.

BP CEO’s exit brings strategic impasse to a head

13 Sep 2023

Bernard Looney quit as the $112 bln oil group’s boss over past relationships with colleagues. BP shares lagged rivals during his tenure due to an ill-timed pivot to green energy. His replacement will have to decide whether to stick with the strategy, or pivot back to oil and gas.

Smurfit $11 bln bid for dominance risks paper cut

12 Sep 2023

The Irish cardboard-box king is handing a roughly 40% premium to investors in US rival WestRock as part of a deal to form a sector leader. The price overshadows chunky cost cuts, implying low returns. Yet standing still in a rapidly softening packaging market is not an option.

Grocers learn lessons of ‘greedflation’ drama

12 Sep 2023

Food-price rises are easing, which is good news for supermarkets that stand accused of profiting from consumer pain. In this Exchange podcast, Ahold Delhaize CEO Frans Muller explains why demand for own-brand goods gives the Dutch group an upper hand in supplier negotiations.

China is bitter medicine for Europe’s EV pivot

12 Sep 2023

Ditching EU combustion engines by 2035 requires carmakers like VW to rapidly boost sales of battery rides. That’s a challenge when electric cars are pricier than gasoline ones. Competition from China will lift take-up and force Western players to become more efficient.

Capital Calls: British wages

12 Sep 2023

Concise views on global finance: UK pay rose by an annualised 8.5% in the three months to July – more than inflation. That’s good for retirees, whose pensions will rise by that amount. But such a hot labour market is likely to prompt the Bank of England to hike rates next week.