EMEA

Telegraph’s $750 mln price implies vanity contest

8 Jun 2023

The UK newspaper’s parent group may be up for sale after its owners failed to repay bank loans. The possible valuation, based on media reports, is steeper than the listed owner of the Daily Mirror. But an influence-seeking billionaire could find ways to justify it to themselves.

Capital Calls: GAM

8 Jun 2023

Concise views on global finance: An investor group led by telecoms billionaire Xavier Niel is attempting a tricky boardroom coup at the ailing fund manager.

Greece offers UK handy way to axe ‘greedflation’

8 Jun 2023

The cost of what Brits eat is up by almost a fifth in a year, so Prime Minister Rishi Sunak is mulling a cap on shoppers’ bills. That would hit grocers and may end up boosting inflation. Athens’ limits on retailers’ margins are a better way to make staples more affordable.

Saudi oil cuts collide with investor scepticism

8 Jun 2023

The Gulf state is slashing oil production in July and convinced OPEC+ to extend cuts to the end of 2024. In this Viewsroom podcast, Breakingviews columnists explain how these restrictions may still not be enough to convince investors to stop worrying about recession.

Yacht maker’s Italy pivot shows the way for Prada

8 Jun 2023

A year after its Hong Kong IPO, the Chinese-owned maker of boats loved by Hollywood stars is rushing to also list shares in Milan. The move offers scant valuation upside, but hedges geopolitical risks. If Ferretti can pull it off, luxury brand Prada will follow.

Diageo’s Ivan Menezes was all-round exception

7 Jun 2023

The CEO of the $94 bln drinks giant, who has died at 63, defied corporate stereotype. He helped engineer a successful merger of equals, delivered index-beating returns while promoting diversity, and seamlessly stepped aside after a decade. It’s a record others should aspire to.

Golf’s Saudi surrender is par for the course

7 Jun 2023

The sport’s main US and European tours are linking their commercial arms with Riyadh-run LIV Golf. Saudi gets the smaller stake despite being the only partner to put in cash. But as it has shown by splashing out on other sports, the chance to polish its image is more valuable.

UBS’s $10 bln state guarantee is a useful fantasy

7 Jun 2023

The bank is getting Swiss taxpayers to shield it against some losses on its Credit Suisse deal. It allows the government to smooth a controversial takeover, and helps UBS boost a stretched capital ratio. Both sides are making a calculated bet that the backstop is never needed.

Capital Calls: Bitcoin is last crypto standing

6 Jun 2023

Concise views on global finance: SEC action against crypto exchanges Binance and Coinbase clarify the regulator’s thinking on which cryptocurrencies it deems to be securities. The lawsuits threaten every digital token except bitcoin, whose design makes it an outlier.

How PMI reinvented the Big Tobacco investment case

6 Jun 2023

Cigarette makers traditionally promise low growth but hefty shareholder payouts. The $140 bln Marlboro producer, though, stopped buybacks and invested in smoke-free alternatives. To emulate its premium valuation, rivals Altria and BAT may have to ditch the industry playbook too.

Stingy European savers will help the ECB, not LVMH

6 Jun 2023

Euro zone citizens have 1 trln euros in pandemic-era savings. Unlike their US peers, they are unlikely to splash the cash in malls and restaurants. That’s bad news for retailers and service providers, but it will help Frankfurt’s rate-setters slow the economy and cool inflation.

Saudi’s oil lollipop reflects its sticky situation

5 Jun 2023

The kingdom has secured OPEC+ consent to extend output cuts into 2024, and will also lop another 1 mln barrels off its own daily production. But if traders bought OPEC’s demand forecasts, oil prices should be higher anyway. Saudi may also struggle to slash output any further.

Pirelli CEO pivots from globalisation to trade war

5 Jun 2023

Marco Tronchetti Provera teamed up with a Chinese buyer to take the tyremaker private in 2015. Now Sinochem’s 37% stake poses business and governance risks for the $5 bln company. An appeal to Italy’s nationalist government may help the veteran industrialist maintain control.

Greece’s reform labours are only half complete

5 Jun 2023

Investors like the euro zone’s former problem child, but a large current account deficit and corruption undermine its appeal. It’s not clear Kyriakos Mitsotakis will do what’s needed to boost savings and improve the rule of law if re-elected as prime minister, says Hugo Dixon.

Capital Calls: Turkey, Indivior

5 Jun 2023

Concise views on global finance: President Tayyip Erdogan’s new treasury minister will struggle to steer the $900 bln economy towards orthodox monetary policies; shares in the London-listed drugmaker jumped after it settled a lawsuit, making it more appealing to potential buyers.

Capital Calls: $6 bln pet buyout

2 Jun 2023

Concise views on global finance: Shares in UK veterinary pharmaceuticals group Dechra are trading 6% below private equity firm EQT’s new, lower bid. That looks too pessimistic given the chunky valuation on offer.

EU-UK clearing drama heads for prosaic finale

2 Jun 2023

The bloc is stalling on allowing UK firms to clear euro derivatives after 2025. That has set off a round of financial-stability finger-pointing. Costs may rise but systemic fears are overdone. If there were real danger, London could just pledge to follow Brussels’ rules.

Securonomics is fuzzy new lodestar for investors

2 Jun 2023

Globalisation, which lowered barriers for trade and financial flows, is in retreat. Taking its place is a doctrine that places national security above economic efficiency. Felix Martin argues the shift for money managers is profound – and throws up some big policy contradictions.

IPO pops are iffy adverts for Gulf capital markets

1 Jun 2023

ADNOC L&S, like other floats by the UAE energy giant, surged on its first day of trading. Yet the 50% rise looks contrived. Abu Dhabi’s listings boom is narrow, and mostly involves state-linked firms. Its dreams of being a go-to destination for global capital are remote.

Syngenta’s bumper IPO will test Chinese appetite

1 Jun 2023

The seeds-to-pesticides group is planning a $9 bln stock market float in Shanghai this year. In this Viewsroom podcast, Breakingviews columnists explain how investors need to get comfortable with its high debt levels and use of toxic chemicals that could hurt its valuation.