EMEA

Kering dons Valentino scent to ease Gucci malaise

28 Jul 2023

The $72 bln luxury giant is buying 30% of the Italian fashion house for 1.7 bln euros. The premium price reflects François-Henri Pinault’s need to cut its reliance on tottering star brand Gucci. Yet Valentino is much smaller, and its acquirer may not own it in full until 2028.

VW and Xpeng get much-needed mutual fuel injection

27 Jul 2023

The $77 bln German carmaker has bought a 5% stake in $18 bln Xpeng. Access to the electric-vehicle maker’s technology could boost VW’s own flagging business in the People’s Republic. But Xpeng equally needs the cash to help withstand a fierce domestic EV price war.

Lagarde hides velvet policy in iron talk

27 Jul 2023

After lifting borrowing costs to a record high, the ECB president sounded tough on inflation to persuade markets interest rates will stay elevated. But she also hinted the central bank could pause. Investors can prepare for a less aggressive monetary stance.

Inflation dip puts central bankers in a pickle

27 Jul 2023

The Federal Reserve and ECB once again hiked interest rates. Yet US price rises are easing with few signs of economic pain. In this Viewsroom podcast, Breakingviews columnists discuss how this phenomenon, dubbed ‘immaculate disinflation’, complicates what policymakers do next.

Capital Calls: Mastercard vs. weed

27 Jul 2023

Concise views on global finance: The credit card company wants to end cannabis purchases on its debit cards. It took a similar stance with adult content site Pornhub. In the end, pot smokers will find a workaround.

Shell may as well try green plug for valuation gap

27 Jul 2023

The $204 bln group’s shares have outperformed US rivals since it flagged a renewed focus on oil, but still lag Chevron and Exxon Mobil. New boss Wael Sawan could try to close the gap by listing his green energy bits. It’s not certain to work, but is better than more buybacks.

Barclays CEO fiddles while valuation droops

27 Jul 2023

Despite earning adequate returns, the $32 bln UK bank has long traded at a big discount to rivals. Boss C. S. Venkat’s plan so far boils down to more of the same. Without clearer targets to move capital out of investment banking, the shares risk remaining stuck in the doldrums.

Glencore deal epitomises net zero’s reduced status

27 Jul 2023

The $75 bln miner used to argue it was better to wind down its coal assets than sell them to a less responsible owner. Now CEO Gary Nagle wants to buy a rival and spin off the enlarged coal unit. Investors, distracted by energy security and fat profits, are unlikely to stop him.

Capital Calls: LVMH’s US dip, Rolls-Royce revival

26 Jul 2023

Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.

ECB’s tough-guy act is getting harder to maintain

26 Jul 2023

Traders expect the European Central Bank to hike rates by 25 basis points on Thursday. President Christine Lagarde wants them to stay high to curb inflation, yet markets are betting on cuts in early 2024. Unless she wins the argument, borrowing costs may have to rise more.

Government’s NatWest meddling crosses risky line

26 Jul 2023

The UK bank ditched CEO Alison Rose hours after backing her, amid pressure from its 39% state shareholder. It’s right for Rose to go. But voters may now wonder why politicians can’t also intervene in setting mortgage rates, and NatWest may find it hard to find a top replacement.

Capital Calls: Biotech alarm, Spotify’s tightrope

25 Jul 2023

Concise views on global finance: Pharma supplier Danaher’s reduced forecast contrasts biotech doldrums against broader market exuberance, in a warning sign for investors; the Swedish music streamer is caught between margin-hungry investors and music labels.

Saudi Mbappé bid even less rational than it looks

25 Jul 2023

State-owned Al Hilal offered $1.1 bln in fees and pay for soccer star Kylian Mbappé, reports say. Spain’s LaLiga gets less in international broadcast revenue a year. Saudi’s nascent league would gain, but the data doesn’t suggest either it or “sportswashing” overall will work.

Unilever new broom’s best sweep is towards Asia

25 Jul 2023

The $137 bln Dove shampoo maker hiked prices without losing many sales in the first half. Yet falling European volumes and limited scope for structural tinkering make it hard for new CEO Hein Schumacher to boost margins. His best hope is to bulk up in his strongest region.

Egypt’s food tightrope has petrodollar safety net

24 Jul 2023

The collapse of the Russia-Ukraine grain deal is a big problem for the world’s top importer of wheat. Egypt’s battered economy will struggle as food prices spike. A $400 mln lifeline from the UAE, flush with oil cash, is one of leader Abdel Fattah al-Sisi’s few crumbs of comfort.

Capital Calls: Chevron

24 Jul 2023

Concise views on global finance: The $300 bln oil giant’s second-quarter profit was cut nearly in half as production rose slightly. It reflects lower prices but there also are signs the industry has learned how to make itself more durable.

ADNOC has upper hand in $30 bln plastics M&A

24 Jul 2023

The UAE energy giant may merge Borouge and Borealis, the petrochemicals firms it co-owns with Austria’s OMV. Simplification helps both state-owned groups, but neither Vienna nor Abu Dhabi will want to be the minority player. The latter’s control of gas and oil inputs looks key.

Fading Russia windfall will test Ambani’s ambition

24 Jul 2023

Earnings at the Indian tycoon’s $210 bln Reliance disappointed. The high crude refining margins driven by the dislocation in energy markets are evaporating. As weak global demand bites, scrutiny will intensify on the conglomerate’s newer consumer-facing businesses.

Robin Hood tariff could curb airline emissions

24 Jul 2023

The aviation industry doesn’t pay duty on fuel despite causing 4% of global warming. A tax would promote cleaner energy and raise billions of dollars, but poor countries oppose it. Rich nations could break the logjam by giving some proceeds to the less well-off, says Hugo Dixon.

NatWest goof is a boon for sketchy bank clients

21 Jul 2023

The UK lender’s CEO apologised to right-wing talking head Nigel Farage amid an account-closure row. Britain will now force banks to respect freedom of expression. Yet that may make it harder to ditch other, more problematic clients – and weaken the fight against money laundering.