EMEA

Navigating the bumps in the energy transition road

28 Feb 2023

War and power crises raise questions about the smoothness of global decarbonisation. In this episode of the Exchange podcast, former Shell Chief Executive and current ABB Chair Peter Voser explains how global companies are adapting, and why European oil majors can still go green.

Santander’s new plan is a make-or-breakup moment

28 Feb 2023

Chair Ana Botín wants to forge deeper links between the disparate bits of her 60-bln-euro bank, including by using common IT systems. If it works, and higher returns follow, the bank should trade at more than the sum of its parts. If not, it will be hard to resist selling assets.

Why the dollar keeps winning in the global economy

28 Feb 2023

The greenback’s share of foreign exchange reserves is at 59%, a two-decade low. Challengers to its role as the world’s means of exchange abound. Yet the globalised financial system bolsters its lynchpin status. Absent major shifts in capital flows, the U.S. currency will thrive.

Capital Calls: Monte dei Paschi, Abrdn

28 Feb 2023

Concise views on global finance: Insurer AXA is selling shares in the Italian bank just four months after joining a risky capital increase; meanwhile, the UK asset management group run by Stephen Bird is still shrinking.

Capital Calls: Buffett’s greatest hits lose verve

27 Feb 2023

Concise views on global finance: The ageing financial rockstar’s annual shareholder missive is stacked with some of his fans’ favorite themes, in the latest sign that he may have run out of new material.

UK begins long and uncertain road back from Brexit

27 Feb 2023

Rishi Sunak agreed a deal over Northern Ireland trade with the European Union. If the UK leader can get it past his own party, it should improve relations and collaboration. Closer links will need bigger compromises than Sunak can stomach, but his deal is symbolically important.

Africa debt stalemate will reverberate across West

27 Feb 2023

More than half the countries in sub-Saharan Africa may default on loans worth over $300 bln. Those which sought IMF relief are awaiting the resolution of a standoff between Western lenders and China. The crisis will leave debtors and creditors worse off and fuel migration.

A post-Erdogan Turkey could come in from the cold

27 Feb 2023

Investors shunned the country as the president let inflation rip. He strained relations with the West by cosying up to Putin and did too little on climate change. An opposition win in coming elections, more likely after the recent earthquake, may change all that, says Hugo Dixon.

Revisiting JPMorgan’s innovative Cazenove deal

24 Feb 2023

The American giant’s 2004 joint venture with the venerable UK stockbroker is often cited as a rare example of a successful investment banking takeover. A new memoir by former CEO Robert Pickering confirms Cazenove was right to sell. Less clear is whether JPMorgan needed to buy.

Spotify’s next act: hosting ad lollapalooza

24 Feb 2023

The music service attracted activist ValueAct as founder Daniel Ek starts to whack costs. Yet rather than cutting its way to profit, Spotify could stem its losses by nabbing a quarter of the streaming and podcasting ad pie. It’s a tough but plausible performance to pull off.

Capital Calls: Adobe’s lose-lose Figma bind

24 Feb 2023

Concise views on global finance: Shareholders in the $160 bln design technology firm seem to have decided that the only thing worse than doing its blockbuster deal for rival Figma is losing it.

IAG takeoff weighed down by debt dilemma

24 Feb 2023

With net debt above its market value, the $9 bln British Airways owner could use a rights issue. But it’s also back in the black after a painful pandemic, and deals may yield cost savings. Boss Luis Gallego has to work out which path is likely to annoy long-term investors least.

Rolls-Royce strategy bind is a problem best shared

23 Feb 2023

Shares in the $13 bln UK engineer surged as it moved on from pandemic losses. Yet it still needs to spend big on new tech to get ready for the energy transition. Given the costs outweigh its scope to do so, Rolls ought to share them via partnerships with big aircraft makers.

Ukraine’s long shadow on business and geopolitics

23 Feb 2023

It’s been 12 months since Russian President Vladimir Putin’s bloody invasion. In this Viewsroom podcast, Breakingviews columnists discuss how energy markets have changed for good, how defence companies are benefiting, and another potential conflict troubling CEOs and investors.

Capital Calls: World Bank, Bumble, Wood Group

23 Feb 2023

Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.

Capital Calls: Tech trustbusting, Fresenius

22 Feb 2023

Concise views on global finance: After fighting a slew of deals, the U.S. FTC decided not to challenge Amazon’s $3.9 bln acquisition of One Medical, while the sprawling $17 bln German conglomerate is cleaning up its messy structure in a tentative step toward breaking up.

Euronext may have to dig deeper to snare Allfunds

22 Feb 2023

The 8 bln euro exchange offered 5.5 bln euros for the wealth technology group, the latest in a slew of deals. Boss Stéphane Boujnah would get much-needed diversification away from sluggish markets. Yet the price is not a knockout, and rivals like Deutsche Boerse could barge in.

Stellantis has well-padded airbag for car crunch

22 Feb 2023

The Jeep maker’s operating income hit record levels in 2022, but it faces weaker demand from punters and rising competition. Still, CEO Carlos Tavares’s cost cutting and low exposure to China give cause for positivity. Those pluses aren’t reflected in the Stellantis share price.

UAE gas IPO’s $50 bln valuation looks like a floor

22 Feb 2023

The Emirates’ energy giant ADNOC is selling at least 4% of its gas processing arm via an Abu Dhabi listing. As with Saudi Aramco, buyers will have to put up with minimal say on strategy. Unlike Aramco’s IPO, the mooted $50 bln valuation may be an underestimate.

TCI’s Airbus fury may have collateral benefit

22 Feb 2023

Hedgie Chris Hohn says the plane maker’s plan to buy a 30% stake in Atos’s cyber arm will destroy value. He’s probably right, but private investors take a back seat in defence deals, where governments call the shots. His salvo might however help Airbus drive a harder bargain.