EMEA

Big bank selloff rests on tiny kernel of truth

10 Mar 2023

Shares in JPMorgan, HSBC and others dropped after Silicon Valley Bank raised equity to cover losses on bond sales. That’s not going to happen to large players with more reliable funding. But it’s a reminder that rising interest rates bring risks as well as rewards for lenders.

Blackstone’s Finnish fiasco adds to property slump

10 Mar 2023

Steve Schwarzman's firm defaulted on a $313 mln securitised loan backed by Nordic offices, after failing to win support from bondholders. More messy workouts are likely as troubled deals come due. It’s an opportunity for savvy players, and another worry for European real estate.

Capital Calls: SVB found old concentration risk

10 Mar 2023

Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.

Capital Calls: WWE girds for insider-betting fight

9 Mar 2023

Concise views on global finance: The wrestling league has asked US states to allow legalized gambling on its staged matches. It’s an invitation to scandal without extreme vigilance. The whole idea does spice up WWE’s possible sale.

Credit Suisse blunders undermine CEO’s repair job

9 Mar 2023

The bank’s shares fell 5% after a call from US regulators stopped it from publishing its 2022 annual report. The watchdog’s accounting questions seem minor and predate boss Ulrich Körner. But the constant bugs impede his quest to win back lost confidence and wealth assets.

Clinging to Richemont is Rupert’s smartest bet

9 Mar 2023

At 72, billionaire Johann Rupert may face questions over the future of his Cartier-to-Piaget empire. Merging the $81 bln bling group with a large rival would be fiddly, and he could lose clout. Hidden value suggests holding onto it while grooming a successor is a better plan.

Swiss red carpet for China stocks rolls downhill

9 Mar 2023

Easier rules have made Switzerland a popular destination for mainland firms selling shares abroad. With battery giant CATL mulling a $5 bln Zurich offering, other European bourses will be eager to join in. Yet the long-term benefits of luring secondary Chinese listings are hazy.

Female entrepreneurs’ glass ceiling is intact

8 Mar 2023

Two decades after boardroom quotas were first introduced, women have advanced at listed firms. Yet despite making up 40% of US business founders, female entrepreneurs capture just 2% of venture capital cash. Governments and asset managers can help raise that proportion.

Near worthless GAM still isn’t an enticing bargain

8 Mar 2023

The Swiss asset manager is trying to sell itself, after losing 96% of its market value since a bond fund scandal in 2018. A buyer would have to stomach losses and slash costs to make the numbers work. Volatile markets and the chance of losing further assets make it a risky bet.

Capital Calls: L&G/UK insurers

8 Mar 2023

Concise views on global finance: The $19 bln group led by Nigel Wilson is expanding rapidly overseas, which should help its depressed valuation.

Malaysia can move on from billion-dollar-whale hunt

8 Mar 2023

Kuala Lumpur is closer to recouping all debt from the 1MDB scandal after Abu Dhabi’s $1.8 bln settlement. Some mopping-up remains, though a punt to wrangle more out of Goldman Sachs looks a long shot. It’s time to draw a line under the ugly sovereign wealth fund saga.

SAP ends pointless M&A roundtrip with Qualtrics

7 Mar 2023

The $150 bln software giant may sell its stake to Silver Lake. A $12 bln valuation implies mediocre returns for SAP, which bought the survey group in 2018. The buyout firm may struggle to put much debt on the target, crimping its profit, but it looks like a more logical owner.

Transatlantic valuation gap is mostly illusory

7 Mar 2023

Arm, CRH and Flutter may pursue US listings, while Shell mulled one. Since European stocks trade at a discount to the S&P 500, they might be hoping for a higher price. But the value chasm doesn’t hold for all sectors, and can be largely explained by differing growth rates.

Capital Calls: Carlsberg CEO exit

7 Mar 2023

Concise views on global finance: Asia will be a key battleground for the $21 bln Danish brewer’s next boss.

Germany’s electricity headache has an M&A cure

6 Mar 2023

Berlin may spend over 20 bln euros on the local unit of Dutch-owned TenneT. Every country’s power grid needs an overhaul to make it fit for the green transition, but Germany’s need is especially pressing. Still, relatively low debt also makes it easier to take swift action.

“No landing” talk leaves stocks in no man’s land

6 Mar 2023

Bond investors worry that strong economic data will keep borrowing costs high. That’s pushed yields on 10-year German debt to an 11-year high. Yet buoyant equity markets are pricing in a dream scenario of faster growth and falling interest rates. They are in for a rude awakening.

Capital Calls: Blacklisting China

3 Mar 2023

Concise views on global finance: Another 28 Chinese firms were blacklisted by the United States, making it harder for them to buy US goods. As security officials warn of TikTok’s massive reach, personal data should count as an American export, too.

There’s hope beyond moaning for European telcos

3 Mar 2023

Orange and Deutsche Telekom asked for US Big Tech to pay for a “fair share” of network investment at the sector’s annual Barcelona bunfight. Even if it helps, it won’t be a quick fix. At least there’s hope the EU will allow more mergers, and new technology could help cut costs.

Cyber-risk gold standard is CEOs’ next headache

3 Mar 2023

With hacking on the rise, US regulators are set to force listed groups to swiftly reveal IT breaches, and how to fend off future ones. That will likely prompt laggard Europe to follow suit. Investors could start applying valuation discounts to those lacking apt cyber defences.

CRH’s firm foundations go beyond where it lists

2 Mar 2023

The $38 bln cement maker’s stock rose amid plans to move its primary listing to the U.S. The shift may indeed prompt a re-rating of CRH shares. But the main driver of the latter will be its even greater focus on an infrastructure subsidy-rich market, and on higher-margin work.