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Britcoin flags promise of cashless world, and risk

7 Feb 2023

The UK plans to make up for being a late e-money adopter by widening access to its digital currency plan. Right now banks are the main way to access physical cash, but online equivalents could be more widely distributed. The business of money could get messy.

China energy rethink can keep Europe warm

7 Feb 2023

A post-Covid economic rebound will increase Beijing’s appetite for liquefied gas. Yet a government push to use more coal and higher imports of pipeline gas from countries like Russia should keep demand 14% below a 2021 peak. That could ease the energy pain for gas-hungry Europe.

Rothschild buyout is right idea, but on the cheap

6 Feb 2023

The family vehicle that controls the 3 bln euro investment bank wants to take it private. That’s sensible: it gets short shrift from public markets and doesn’t need access to capital. Yet strip out a chunky dividend and the price is low, which may set up a battle with minorities.

Capital Calls: Tyson Foods, Electric cars

6 Feb 2023

Concise views on global finance: Shares in the meat producer fell nearly 6% after it revealed less-than-savory results; Faraday Future and Canoo are raising capital amid a fresh stock market rally for the industry.

Green subsidy race may be what the world needs

6 Feb 2023

High carbon taxes would be the best way to combat climate change. In their absence, subsidies are a good second best. As the global elephants – the U.S., EU and China – roll out financial aid, the key will be to ensure some fair play so others don’t get trampled, says Hugo Dixon.

Capital Calls: U.S. jobs, Crypto data-miners

3 Feb 2023

Concise views on global finance: Rapid hiring in America has bad and worse consequences; blockchain analytics company Chainalysis is cutting staff, but those tracking crypto crimes, including governments, could use more of its services.

China ban would slow, not halt, Western solar push

3 Feb 2023

Reacting to the chip war, Beijing may ban the export of technology for making solar panels, a $235 bln sector it currently dominates. Yet the West already has green energy know-how. Creating a rival industry without Chinese expertise may be slower and costlier but not impossible.

Markets gulp down central banks’ half-full glass

2 Feb 2023

Three of the world’s most prominent central banks raised interest rates to multi-year highs this week. Investors loved it, reading the decisions as the beginning of the end for monetary tightening. Policymakers, and stubborn inflation, might prove them wrong.

Big Oil mega-deals would put investors on the spot

2 Feb 2023

Shell and BP are printing money but have rock-bottom valuations. Punts by U.S. giants Exxon Mobil or Chevron are financially viable, if politically tricky. European shareholders may face a tough choice: sell out to a less green rival, or hope that risky renewable bets pay off.

KKR tries its luck again with Telecom Italia bid

2 Feb 2023

After two failed attempts, the buyout firm is seeking control of the telco’s network, valued at 20 bln euros. A sale would solve the group’s persistent debt headache. To overcome resistance from major shareholder Vivendi, KKR will need backing from the government in Rome.

Deutsche Bank turnaround victory is really a loss

2 Feb 2023

Technically, CEO Christian Sewing beat an 8% return target that was the centrepiece of his plan to revive the former basket case. Strip out a tax gain, though, and he came up short. It leaves Sewing with a depressingly familiar job: cut costs and hope traders keep raking in cash.

Italy may hold key to unlock EU green subsidies

1 Feb 2023

Europe’s response to the U.S. green-subsidy surge now hinges on tapping existing budgets, rather than new money. Ursula von der Leyen wants to channel unspent pandemic billions into tax credits and tweak state aid. Italy’s Giorgia Meloni may be the one to broker a deal.

Capital Calls: Cryptocurrency, Chelsea FC

1 Feb 2023

Concise views on global finance: Britain delivers a blow to digital assets by aiming to regulate them the same way as traditional ones, while the UK soccer team’s new owner Todd Boehly splashes the cash.

Liberated GSK is still searching for booster shot

1 Feb 2023

The $72 bln drugmaker spun off its consumer unit last year to focus on prescription medicines. But it now trades at a discount to European rivals. To close the gap, CEO Emma Walmsley needs to deliver new drugs, fend off Pfizer’s respiratory vaccine, and prove her M&A skills.

Europe’s autos have weak defences against China

1 Feb 2023

Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.

Sick Britain no longer needs Dr Bailey’s medicine

1 Feb 2023

The Bank of England is likely to raise its key interest rate to 4% on Thursday. That would be a step too far. The UK is nearing a recession, consumers are suffering and inflation is abating. The higher Governor Andrew Bailey hikes rates, the more drastic cuts will likely follow.

Global supply chain scars will spark sea change

31 Jan 2023

The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.

UniCredit’s share-price surge has further to run

31 Jan 2023

Boss Andrea Orcel wants to hand more than 5 bln euros to investors through dividends and buybacks, after reporting stellar 2022 earnings. Further Russia writedowns are a risk, but the bank’s bottom line looks solid. A valuation of just over half tangible book value looks too low.

Petrol tycoons’ debt juggle may be a deal too far

31 Jan 2023

The Issa brothers may mesh their grocer Asda together with the UK arm of their gas pump operator EG Group. A deal, worth say 3 bln pounds, would help the shaky forecourt business cut debt, and ease a refinancing cliff. But it would leave the supermarket weaker, amid a price war.

UBS boss Ralph Hamers has a growth problem

31 Jan 2023

Revenue in the Swiss bank’s wealth-management core slid 2% in 2022, as markets fell. Higher interest rates and China’s re-opening will ease the pain, but not for long. Hamers is running short on credible ways to get the top line moving, undermining his hunt for a valuation boost.