EMEA

Capital Calls: Illumina’s odd bedfellows

3 Apr 2023

Concise views on global finance: The FTC’s order that Illumina unwind its Grail acquisition puts head commissioner Lina Khan on the same side as Carl Icahn. Khan opposes the deal because Illumina can raise prices, while the activist thinks the deal doesn't make sense.

Israel hits tech sector cash cow while it’s down

3 Apr 2023

Prime Minister Benjamin Netanyahu has delayed a controversial plan giving the state power to override court decisions. Foreign investors in Israel’s key tech sector, which accounts for half its exports, were already getting stingier. They’ll get even more so if the idea returns.

Swiss anger will sour UBS’s deal of the century

31 Mar 2023

Politicians and citizens are unhappy about job cuts and future risks arising from the bank’s $3 bln state-backed Credit Suisse rescue. Parliament fury may force returning CEO Sergio Ermotti to tweak the deal. Either way, an unsavory domestic whiff could hang over UBS for years.

ECB’s inflation battle has a 550 bln euro problem

31 Mar 2023

Christine Lagarde must keep tightening policy without triggering a bank crisis. She faces a test in June when a chunk of emergency loans comes due, increasing lenders’ funding costs. Targeted help, however, could ease financial risks and preserve the fight against high prices.

Capital Calls: H&M, UK car goals

30 Mar 2023

Concise views on global finance: The $20 bln Swedish retailer’s investors seem to think the worst has passed; Britain has loosened its ambition to phase out combustion engine cars, but the big question is how many green vehicles will be made domestically.

Fiddly call-centre deal shows why M&A is so quiet

30 Mar 2023

Dealmakers have had a quiet start to 2023, given economic uncertainty and shaky debt markets. Concentrix’s $4.8 bln swoop on Webhelp solves many of those problems with a clever structure, including a convertible note. But it’s not a formula that would work in many other cases.

Ferrari’s green journey takes surprise turn

30 Mar 2023

Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.

Bank rescue real estate turns from dowry to downer

30 Mar 2023

In 2008, failed lenders like Bear Stearns owned prime property that helped underpin value for buyers. But Credit Suisse sold off much of its real estate before UBS swooped. Its long-term leases may prove a headache as remote working shrinks demand for office space.

Cellnex could use an outsider with a sharp knife

30 Mar 2023

Hedge fund TCI has accused the Spanish tower operator of “mishandling” an ongoing CEO search. Once an M&A machine, the $27 bln firm needs to cut its debt load markedly. That requires a new boss with a fresh perspective, not an insider.

Alibaba hands parched dealmakers a glass half-full

30 Mar 2023

The $250 bln e-commerce giant’s six-way split will prompt bankers to dust off pitchbooks for peers like Tencent and Baidu, too. The bold can spread the net wider to carmakers and more. With M&A and other fees in a slump, it’s the best chance in a while to drum up business.

Capital Calls: Apple arrives late to pay-later

29 Mar 2023

Concise views on global finance: The $2.5 trln iPhone maker is rolling out its U.S. “buy now, pay later” product into a much tougher, and riskier, market than when it first unveiled plans in June.

Boomerang UBS boss ticks several important boxes

29 Mar 2023

Sergio Ermotti is returning as CEO after less than three years. The suboptimal governance move highlights a dearth of senior banking talent. But Ermotti’s record of shrinking an investment bank – and his Swiss passport – will be vital in the tricky integration of Credit Suisse.

Busting through the brick wall barricading M&A

28 Mar 2023

Worldwide merger activity is down by about half this year to $470 bln, stymied by tough financing conditions, assertive trustbusters and more. In this Exchange podcast from New Orleans, JPMorgan’s head of M&A Anu Aiyengar debates downbeat dealmakers and the pockets of optimism.

Capital Calls: Syngenta IPO delay

28 Mar 2023

Concise views on global finance: The Shanghai Stock Exchange has canceled a hearing to review the agrichemicals group's listing plans, leaving investors fearing the worst in China.

Europe throws ignition cars a thin lifeline

28 Mar 2023

A last-minute EU deal will exempt autos running on carbon-neutral propellants from a 2035 combustion engine ban. That may help sports carmakers like Ferrari. Such fuels are costly and energy-intensive. Brands betting big on electric rides, like VW, will struggle to change tack.

Bank health barometer could use own health warning

28 Mar 2023

Stock market investors interpreted last week’s jump in Deutsche Bank’s credit default swaps as a sign of distress. Yet thin trading in parts of the $12 trln market for speculating on creditworthiness can exaggerate moves. Add social media and it can feed self-fulfilling spirals.

Water finance pipe is full of recycled pledges

28 Mar 2023

Attendees left the UN’s first H2O confab in 46 years pledging to invest $300 bln. To hit that target, governments and companies like Veolia and Xylem mostly repackaged old commitments or dressed up ordinary outlays as new spending. Global water policy needs more pressure.

Xavier Niel can feast on European telco misery

27 Mar 2023

The French tycoon has assembled a privately owned telecoms empire worth about $33 bln, Breakingviews calculates. Behind the scenes he’s manoeuvring to further spread his wings. Purchases of stakes in Vodafone and Luxembourg-based Millicom signal the scale of his ambition.

Capital Calls: Saudi and Credit Suisse, EU patents

27 Mar 2023

Concise views on global finance: The resignation of the chairman of Saudi National Bank, Credit Suisse’s largest shareholder, may prompt a quiet period for other investors; big companies want Europe’s new system for registering intellectual property to cover more countries.

Capital Calls: Microsoft/Activision, Subscriptions

24 Mar 2023

Concise views on global finance: The software giant convinced UK regulators to drop one of two major concerns about its $69 bln deal. Meanwhile, the U.S. Federal Trade Commission has picked an easier — and less controversial — fight than its antitrust crackdown.