Industrials

Toyota tops up tank to fuel a hard drive

2 Aug 2023

Rising sales helped net income surge ahead by 75% in Koji Sato’s first quarter behind the wheel of the $230 bln Japanese carmaker, pushing the stock to an all-time high. To keep up the pace, though, he has to speed electrification and outpace competition from China and beyond.

How Europe can square the circle on green economy

1 Aug 2023

Shifting away from fossil fuels is an opportunity for the bloc, argues economy tsar Paolo Gentiloni in this Exchange podcast. But it will have to overcome challenges, such as US competition for investment and the EU’s own narrow set of financial tools.

Capital Calls: LVMH’s US dip, Rolls-Royce revival

26 Jul 2023

Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.

Capital Calls: European steel

21 Jul 2023

Concise views on global finance: Sweden’s $6 bln group SSAB misses profit forecasts as Europe’s demand tanks and steel prices shrink.

Britain upgrades to also-ran in EV battery race

19 Jul 2023

India’s Tata will spend $5 bln on a new gigafactory in England, helped by state subsidies. After Britishvolt’s demise, it suggests the UK can still lure green tech. But with more needed just to maintain its current auto output, Britain is still off the pace versus the EU and US.

VinFast’s $27 bln SPAC deal belongs in scrapyard

17 Jul 2023

Most of the acquiring blank-cheque company’s investors opted for their money back rather than own the Vietnamese EV maker. The buyer could try to trim the heady valuation. But with the Tesla wannabe’s low US sales and poor reviews, ditching the deal is better than patching it up.

Germany’s China policy caps pain for its companies

14 Jul 2023

Europe’s biggest economy has a new strategy to limit exposure to China and align more with Brussels and Washington. Yet a previous version of the plan was tougher. Big China-focused corporates like BASF and Volkswagen will be relieved they can de-risk at their own pace.

Capital Calls: Thames Water, Bayer

10 Jul 2023

Concise views on global finance: The indebted UK utility secured a pledge from shareholders to cough up 750 mln pounds over the next two years; the German conglomerate could help long-suffering investors by undoing the disastrous Monsanto deal.

Recycling fail exacerbates EU’s metals conundrum

7 Jul 2023

The bloc is likely to miss a target to double its use of recycled material by 2030. That’s especially short-sighted given the growing threat of Chinese export restrictions on critical metals. Improving Europe’s ability to mine junk would help shield key EU industries.

Beijing’s autos intervention is a necessary evil

7 Jul 2023

Regulators orchestrated a truce between Tesla and 15 Chinese rivals after a price war drove discounts on some models to as much as 20%. State interference can be costly, but this leaves room for healthy competition. And it suits EV makers more than their gas-guzzling rivals.

Thyssenkrupp hydrogen IPO calls for leap of faith

22 Jun 2023

The German conglomerate has resumed efforts to list electrolyser firm Nucera, hoping to raise $650 mln. Green hydrogen was once seen as the Swiss army knife of climate change. But market sentiment has soured and Thyssenkrupp’s alkaline technology faces competition from China.

ADNOC’s German chemical punt looks a stretch

20 Jun 2023

The Abu Dhabi energy giant is eying Covestro, valuing it at 14 bln euros including debt. The energy crisis has hit the German group’s valuation, and other UAE firms have snapped up European bargains elsewhere. But ADNOC would require synergies to make a deal stack up financially.

Shelved soda ash IPO is a UK wake-up call

15 Jun 2023

Turkish-owned WE Soda dropped plans for an $800 mln London listing after a cool reception from prospective shareholders. The firm blamed their cautiousness. The truth is that Britain’s attempts to fiddle with listing rules to revive the IPO market aren’t fooling shrewd investors.

Lessons from the original Industrial Revolution

9 Jun 2023

There’s much excitement that automation will unleash a new era of innovation. Yet in Britain, which led the first transformation of the industrial era, growth has stalled. Policymakers should study the conditions which sparked previous economic success, writes Edward Chancellor.

Global tax would spoil investors’ plastic party

1 Jun 2023

The world is drowning in waste, but demand for durable polymers is soaring. This may change if UN talks to end plastic pollution by 2040 succeed in introducing a levy. That will shrink a bonus market for Big Oil and cut packaging firms’ margins.

Chinese battery cash will fuel Europe’s EV drive

31 May 2023

The country’s investments in foreign plants and projects to power electric cars quadrupled to $15 bln, chiefly into the EU. Over-reliance on tech leader CATL and its compatriots is a risk. But European rivals are few and carmakers like VW and BMW have more to gain than lose.

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.

Counting the cost of the US-China chip war

11 Apr 2023

Six months into Washington’s sweeping export restrictions on semiconductors, Chinese and global chipmakers including TSMC are navigating the fallout. In this Exchange podcast, author Chris Miller talks about the fight for the critical technology and how Beijing may retaliate.

Bayer’s sunk boss leaves high water mark

21 Mar 2023

In one of his last acts before bowing to activist pressure, Werner Baumann is pledging the $60 bln drugs-to-seeds company will slash rice’s H2O needs by 25%. Leaving aside his legacy as the architect of the Monsanto deal, his ambition is worth emulating.

EU and US green arms race misses bigger picture

16 Mar 2023

The European Union’s response to Joe Biden’s Inflation Reduction Act gives member states leeway to push back with their own green subsidies. Yet plans for production targets are misguided. To decarbonise while managing China risks, it’s better to seek common ground with the US.