EMEA

Capital Calls: US GDP, Eli Lilly, EU budget

27 Apr 2023

Concise views on global finance: Consumer spending provided fragile support for the US economy in the first quarter. Meanwhile pharma group Eli Lilly is racing against rising obesity expectations, and the European Commission faces German hurdles to replacing its budget rules.

Capital Calls: Plan C for Teck Resources

26 Apr 2023

Concise views on global finance: The Canadian miner withdrew a shareholder vote to split coal from copper as it looked set to fail. If a promised “simpler” breakup plan also falls short, the $24 bln takeover bid from Glencore may become more appealing.

German $13 bln heat pump sale dents EU green hopes

26 Apr 2023

US firm Carrier Global is buying the energy unit of family-owned Viessmann. It’s a setback for German and European ambitions to create regional leaders in new technology. Yet for continental groups to compete globally, loss of control may be a necessary price.

Dollar bulls are praying for a mild downturn

26 Apr 2023

The greenback has lost 14% versus the euro since September, as investors bet on Europe’s recovery and China’s reopening. Inflation and interest rate trends still favour the single currency. The best hope for the buck is a minor economic slowdown to boost its safe haven status.

Capital Calls: News anchor carnage

25 Apr 2023

Concise views on global finance: Fox News and CNN parted ways with star anchors Tucker Carlson and Don Lemon, respectively. The abrupt exits reflect an emerging identity crisis for the cable news business as the ratings boost provided by the Trump administration fades.

New UBS investor pitch fits better than old one

25 Apr 2023

Rescuing Credit Suisse is a risky move. But first-quarter results show that the buyer’s existing business is struggling to grow. The merger offers large savings and creates a wealth giant with $3.5 trln of assets. The return of proven cost-cutter Sergio Ermotti as CEO helps.

EY’s split fiasco will spark slow-motion decline

25 Apr 2023

The audit giant’s bean-counters are insulated against a rapid loss of business after its failed breakup. But EY’s more profitable consulting arm, including its prize tax unit, is less so. More reticent new clients and staff may see the Big Four become the Big Three-and-a-half.

Exploring the City of London’s existential dread

25 Apr 2023

The global financial centre is suffering a spasm of anxiety about its status, while the government is pushing post-Brexit reforms. In this Exchange podcast William Wright, founder of the New Financial think tank, discusses the roots of the malaise and what can be done to fix it.

Credit Suisse mess leaves scattered Swiss debris

24 Apr 2023

A $3 bln state-sponsored UBS takeover prevented the failure of Bern’s other big bank. Yet small, export-oriented Swiss firms now only have one large lender for their needs, and additional bank regulation is likely. Meanwhile, historic US tax issues may come home to roost.

UBS investors’ M&A fears are easing

24 Apr 2023

One question hanging over Chair Colm Kelleher’s Credit Suisse deal was whether there’d be many assets left by the time it closed. But the target’s outflows were smaller than they could have been, and the valuable local unit held up well. That buttresses shareholders’ confidence.

Capital Calls: Disney, Thyssenkrupp

24 Apr 2023

Concise views on global finance: The CEO of the $180 billion entertainment company has to thread the needle between layoffs and degrading value as he finds a successor; the 4 bln euro German steel-to-cars group’s shares tanked after CEO Martina Merz left.

Capital Calls: P&G, ‘South Park’

21 Apr 2023

Concise views on global finance: Prices hikes helped the Tide maker’s sales again as consumers stayed loyal; Paramount and Warner Bros Discovery are suing each other over the show’s rights in a case that reflects shifting strategies on licensing media and intellectual property.

Teck breakup vote is just a battle in Glencore war

21 Apr 2023

The Canadian miner’s carve-up plan will fail if even a minority of investors vote against it next week. That’s quite possible, and would constitute an initial win for Glencore’s rival $23.5 bln offer. But the Swiss group would still face a struggle to get its own deal accepted.

Apollo’s Italy gambling IPO plays it suitably safe

21 Apr 2023

The US buyout fund is finalising a $3 bln listing of Italian betting firm Lottomatica. That will help slash the company’s debt and fund growth in Europe’s second-biggest gaming market. But the price discount suggests the IPO market remains a domain for the cautious and the needy.

Guest view: Why bank investors have it the hardest

21 Apr 2023

Lenders were supposed to be boring after 2008. Recent collapses exposed that vision as a fantasy. Shareholders grapple with high leverage, opacity, erratic regulators and intangibles like trust. Seemingly low valuations may not be low enough, argues former analyst Rupak Ghose.

Investors can discount IMF’s emerging-market gloom

21 Apr 2023

The multilateral lender has sounded a now-traditional warning about the financial distress facing emerging economies. Yet these markets have navigated rising US interest rates surprisingly well. Deep reforms mean there may be more good news to come, argues Felix Martin.

Politicians and policy wonks diverge on economy

20 Apr 2023

Prominent policymakers and world leaders met in Washington last week to discuss the economic outlook. In this Viewsroom podcast, Breakingviews columnists explain why US politicians are taking a rosier view of inflation and vulnerabilities in the banking sector than the IMF.

Capital Calls: AT&T’s magic number falls short

20 Apr 2023

Concise views on global finance: The $140 billion telecom giant, now free from its tangled M&A past, has one metric to deliver on: cash to support its dividend. But that figure fell 64% in its first-quarter results.

Bolloré sale brings Vivendi endgame a step closer

19 Apr 2023

Tycoon Vincent Bolloré may offload his logistics unit for $5 bln. That gives him firepower to buy out shareholders of his $12 bln media group Vivendi. Yet a full takeover may be costly, and the 71-year-old has other ways to tighten his grip. Betting on a big premium looks risky.

Man U sale rejig will perturb other soccer sellers

19 Apr 2023

The Glazers want to sell the Red Devils for $7 bln, but may have to settle for a stake sale to private equity instead. That raises the question of whether club valuations have peaked. If so, the likes of Man City’s Silver Lake may find it harder to secure a lucrative exit.