EMEA

UK banks are appropriate airbag for mortgage crash

27 Jun 2023

British politicians are starting to call out lenders that have delayed passing on higher rates to savers, even as they charge borrowers more. Bank share valuations already implied such windfalls might be temporary. The sector’s rising margins justify some political arm-twisting.

Why backing prevention can yield better health

27 Jun 2023

Treating illnesses like cancer consumes 11% of global GDP, according to the World Health Organization. In this Exchange podcast, Dr. Katie Tryon, director of healthcare strategy at Vitality, explains that overburdened care systems need to spend their way back into shape.

Capital Calls: Eli Lilly gorges on obesity options

27 Jun 2023

Concise views on global finance: The drugmaker found patients losing an incredible 24% of their weight on one of its latest treatments. First-movers don’t always win out in pharma, however, as Pfizer proved with Lipitor. That’s why Lilly is wise to keep investing in alternatives.

Capital Calls: Blackstone’s bright property sale

26 Jun 2023

Concise views on global finance: The investment firm led by Steve Schwarzman is selling a group of warehouses to Prologis for $3 bln, demonstrating that some parts of the troubled commercial real estate industry are holding up.

Markets are far from pricing in peace

26 Jun 2023

Germany’s Rheinmetall and other defence shares fell after an aborted Russian mutiny. Domestic instability may shorten the Ukraine war, curtailing lucrative contracts. Yet chaos in Moscow, Western tensions with China and rising cyberthreats will keep the world amply unsafe.

Europe has more Russian lessons to learn

26 Jun 2023

Yevgeny Prigozhin’s failed mutiny rams home the EU’s need to protect itself from trouble abroad. Leaders meeting this week in Brussels are thinking in more geostrategic terms and may now agree a China policy. But until they act as a bloc they will lack clout, says Hugo Dixon.

Time for world to dust off its post-Putin plans

26 Jun 2023

The Russian president has been humiliated by his former protégé Yevgeny Prigozhin’s failed coup. Whether he clings to power or is eventually shunted aside, he looks wounded. When weighing up the consequences, global powers should expect the worst but prepare for the best.

Capital Calls: Canada is calling Meta’s bluff

23 Jun 2023

Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.  

Eni’s bet on gas comes at an acceptable price

23 Jun 2023

The Italian group and Var Energi, in which it holds a 63% stake, are buying Neptune Energy for $4.9 bln. The seller’s private equity owners once hoped for an IPO at twice that level. Bulking up in fossil fuels carries risks, but Eni’s price at least creates some sort of buffer.

Ukraine’s push for speedy rebuild faces obstacles

23 Jun 2023

Kyiv is keen to put aid money to work on an early start of the reconstruction effort. Foreign donors and investors remain wary of the war dangers. A scheme to insure those risks could speed up things, but going too fast could also compromise Ukraine’s long-term recovery effort.

Interest rates have broken the global wealth pump

23 Jun 2023

The world has been through a second Gilded Age where the rich got richer, helped by ultra-low interest rates. In the past, such episodes ended in revolution or civil war. This time, higher borrowing costs can bring about a painful but peaceful transition, says Edward Chancellor.

Firefighting leaves central banks on shaky ground

22 Jun 2023

Policymakers in the UK, Switzerland, Norway and Turkey all hiked rates on Thursday. Stubborn inflation gives them little choice, even though they may cause recessions. In London and Ankara, ratesetters’ job is made much harder by politicians’ own failures and need for scapegoats.

Capital Calls: Satellite M&A crash landing

22 Jun 2023

Concise views on global finance: SES and Intelsat’s decision to call off merger talks leaves the Luxembourg-based group with a $3 bln puzzle.

Rebuilding Ukraine: how much and who pays?

22 Jun 2023

Talk of reconstruction may seem premature with Russia still firing missiles at Kyiv. Yet that’s what policymakers and financiers gathered in London this week to debate. In this Viewsroom podcast, Breakingviews columnists discuss the cost, the timetable, and who picks up the tab.

Masayoshi Son’s new AI push merits a pinch of salt

22 Jun 2023

The SoftBank founder said he would place further bets on artificial intelligence after taking a pause. Some of his investments may pay off. But Arm is his only real AI win from a $112 bln portfolio, his credibility has taken a knock, and his war chest is smaller than it looks.

Thyssenkrupp hydrogen IPO calls for leap of faith

22 Jun 2023

The German conglomerate has resumed efforts to list electrolyser firm Nucera, hoping to raise $650 mln. Green hydrogen was once seen as the Swiss army knife of climate change. But market sentiment has soured and Thyssenkrupp’s alkaline technology faces competition from China.

Volkswagen’s tight ship is facing a bigger storm

21 Jun 2023

The $78 bln carmaker’s pledge to boost margins and curb investment may fend off criticisms of inefficiency. Yet CEO Oliver Blume has yet to convince investors he can battle greater competition from Tesla and Chinese rivals. Volkswagen’s depressed valuation may linger.

AI’s regulation naysayers protest too much

21 Jun 2023

Lawmakers in the European Union and elsewhere are scrambling to draft artificial intelligence rules. Industry leaders like OpenAI boss Sam Altman warn the approach is too onerous. Yet the risks of pandering to special pleading exceed the dangers of stifling a nascent industry.

Donors can digest Ukraine dam attack damage

21 Jun 2023

The destruction of the Kakhovka dam is a big blow to Kyiv and adds billions of dollars to its recovery bill. Yet international donors meeting this week in London can absorb the long-term shock. Especially if they take the assault as a sign of Russia’s rising military desperation.

Swiss $17 bln CoCo case could bite UBS on the tail

21 Jun 2023

Bondholders are suing regulator FINMA for ordering the writedown of funky hybrid bonds to smooth a Credit Suisse deal. If they win, the debt may come back to life, giving UBS a capital hole. Or the government may pick up the tab, creating new political headaches.