Infrastructure

Panama deal puts CK Hutchison in a sea change

6 Mar 2025

How the Hong Kong conglomerate uses the $19 bln in proceeds from the sale of its global ports will be a key test for Chair Victor Li. His flagship group has been deleveraging and increasing payouts. If geopolitics don't get in the way, the Li empire is overdue a big purchase.

BlackRock gets bargain berth in Panama trade storm

4 Mar 2025

The investing giant agreed to pay $23 bln for CK Hutchison’s port operations along the vital shipping canal and beyond. It helps the Hong Kong conglomerate out of a political jam. A discounted valuation also bolsters boss Larry Fink’s bold but shaky infrastructure strategy.

How to sort winners from losers in AI’s civil war

4 Mar 2025

Some advocates believe artificial intelligence is poised to surpass human capabilities. Others see it more as a powerful problem-solving tool. In this episode of The Big View podcast, Felix Martin explores the implications of the diverging views for investors and economists.

Aircraft maintenance boom has further to fly

14 Feb 2025

In 2024, stuttering production of new jets saw repairs of older models take on fresh import for the likes of Melrose and Safran. This year deliveries could rise by 25%. But supply chain uncertainty and strong flying demand mean the maintenance profit engine can continue to motor.

Why Elon Musk is a headache for broadband bosses

11 Feb 2025

The SpaceX founder’s Starlink business has about 5 mln users of its satellite internet service. It’s a big risk for telecom firms in developing countries with few fixed-line connections, like India. But Western incumbents, particularly in the US, should also be concerned.

China advance creates more AI winners than losers

27 Jan 2025

The DeepSeek model’s quality and low cost has spurred a selloff in chips and energy stocks. Chinese competition may indeed hit ‘picks and shovels’ players like $3.5 trln Nvidia. But it’s not yet certain, and making AI less the domain of Big Tech may enhance its broader benefits.

Ericsson’s recovery looks tough to maintain

24 Jan 2025

The $27 bln telecoms hardware group, and Finnish rival Nokia, have seen share price gains of over 40% in the past year. They have a rebound in US 5G spending to thank. But as this capex cycle winds down, investors may feel their companies lack a sufficiently compelling plan B.

Stargate opens a portal to the AI feeding frenzy

22 Jan 2025

OpenAI, SoftBank and Oracle’s new venture promises to plow $500 bln into artificial intelligence infrastructure. Details are hazy, one project had already begun and much more cash is needed. But President Trump’s blessing lets eager investors and asset managers feast on hype.

Telefónica ouster flags need for a Spain discount

20 Jan 2025

Madrid has used its stake in the $22 bln telco to abruptly replace boss José María Álvarez-Pallete. Spain’s fast growth means it borrows more cheaply than France. But if the government keeps throwing its weight around, domestic companies may warrant a governance markdown.

Huawei is a microcosm of China’s last four decades

14 Jan 2025

Since its founding in 1987 the tech giant has learned from Western rivals, expanded overseas, and is now on the front lines of a new Cold War. In this episode of The Big View podcast Eva Dou, author of ‘House of Huawei’, explains how the secretive firm became a national champion.

Tycoons’ odd telco bets mask a greater logic

26 Nov 2024

In recent years high-profile, rich investors like Carlos Slim have snapped up stakes in the likes of $19 bln BT. These haven’t always yielded juicy returns, nor prompted strategic shifts. But as a bet on much-needed consolidation, they may yet end up looking smart.

Europe’s Starlink-lite is a worthwhile also-ran

21 Nov 2024

EU satellite players like Eutelsat are debt-laden minnows compared to Elon Musk’s SpaceX-owned behemoth. But given Starlink now owns more than 60% of all working satellites, Europe has to start somewhere. Investors shouldn’t count on galactic returns, though.

Trump 2.0 will see more European firms do a Holcim

18 Nov 2024

The $56 bln Swiss building materials group is splitting off its US unit and listing it separately. Some CEOs may think President-elect Donald Trump will spur a growth spurt. Fear of missing out, and a huge valuation gap, will make other European companies ponder similar moves.

Vodafone M&A spree leaves German problem untouched

12 Nov 2024

CEO Margherita Della Valle has spent the past 18 months remodelling the $23 bln telco by striking deals in Britain, Spain and Italy. But the shares have trailed European rivals’. To change that, the former finance chief will have to tell a better Teutonic growth story.

UK government can still trip over lower fiscal bar

11 Oct 2024

Chancellor Rachel Reeves needs an extra 31 bln pounds in public investment by 2029 to boost the country’s anaemic growth. Easing the spending rules is a start. But without a clear plan and return targets, the Labour administration will fall into a debt trap of its own making.

AI is a black hole of bits, chips and power

26 Sep 2024

OpenAI’s ChatGPT kicked off a race to develop ever-more-sophisticated artificial intelligence. In this Viewsroom podcast, Breakingvews columnists dissect the vast amount of data-crunching bots and power required to feed it, investments that could cost trillions of dollars.

Germany gives DSV a sweet deal on freight takeover

12 Sep 2024

The Danish group will acquire Schenker, the logistics arm of indebted German railway operator Deutsche Bahn, for 14 bln euros, beating a higher CVC offer. Berlin may be hoping that an industry player will be a more stable owner. But DSV’s share price jump shows it got a bargain.

UK’s housing mess requires costly fix

29 Aug 2024

PM Keir Starmer has pledged to build many more houses. Yet homebuilders’ shares are not pricing in a boom. Private players may prefer to sell fewer, pricier properties. More government funds would help, at the risk of further squeezing Britain’s finances.

Power grids’ low-wattage resources may spark M&A

13 Aug 2024

European electric utilities have to invest big to meet rising demand. Yet balance sheets are laden with debt and raising equity is tough. Some will have to sell assets, or whole companies. Iberdrola’s $5 bln acquisition of a UK peer at a decent premium could be the first of many.

Drahi-for-Bharti swap gives BT partial relief

12 Aug 2024

French mogul Patrick Drahi is offloading a 25% stake in the British telco worth about $4 bln to India’s Bharti. BT CEO Allison Kirkby can stop worrying about her indebted shareholder. Alongside Deutsche Telekom and Mexico’s Carlos Slim, her share register still looks crowded.