Manufacturing

Franco-German defence IPO hits private equity snag

16 May 2025

Buyout group Triton is resisting tank maker KNDS’s intention to exercise a call option and take its stake in engine manufacturer Renk to 25%. The legal dispute may end up in a compromise, but it could hinder the Franco-German group’s ability to launch an IPO this year.

Trade spats give repair giants narrow flight path

2 May 2025

Firms such as $115 bln Safran have been flying high as investors bet they will reap the benefits of plane shortages. Trade tensions – and airlines refusing to pay duties on new jets – could boost the trend further. But there’s a risk uncertainty will ground appetite for travel.

Auto investors make bold bet on more Trump U-turns

30 Apr 2025

Volkswagen, Stellantis and Mercedes have largely swerved the question of how much pain they expect from tariffs of up to 25%. While duties may clobber earnings and sales, valuations are not pricing in the worst. It implies a deeper stock crash if the US president plays hardball.

Why a defence boss could boost Europe’s revival

22 Apr 2025

The region’s armies, and their corporate suppliers, lack cross-border scale and a joint investment approach. Putting someone in charge of common projects, including with non-EU members like Britain, could make sure that a 640 bln euro annual defence budget is well spent.

Swiss spinoff proves that not all robots are equal

17 Apr 2025

Conglomerate ABB will hand its industrial arm-making unit to investors. It makes sense given fierce competition and scant overlap with the rest of the $95 bln group. With Nvidia and Tesla’s CEO hyping automatons, it’s a reminder that selling robots can be a low-margin endeavour.

US-Dutch purchase flags new art of the chip deal

16 Apr 2025

Applied Materials bought 9% of $8 bln Netherlands-based BESI. In a less geopolitically tense world, it might be a cross-border takeover instead. Grabbing a stake at least gets the Californian buyer a seat at the table in case a rival bidder, perhaps from Europe, tries its luck.

Big Pharma has partial immunity from Trump tariffs

9 Apr 2025

The US is threatening to hit the $1.7 trln sector, having initially spared drugmakers like Roche and Eli Lilly. The market’s complexity offers some protection and disruptions may cost lives. This means import levies are likely to be less painful than for car or steelmakers.

Trump kicks all of Asia into the China tariff boat

3 Apr 2025

New levies on the People’s Republic are 34% but ally Japan and re-exporter Vietnam are also hit hard. It crushes the China-plus-one trade. Yet there is no replacing US demand and Beijing will struggle to rally neighbors under a free trade banner if its goods flood the region.

Make in India could do with a dose of MAGA energy

1 Apr 2025

New Delhi may let its $23 bln flagship manufacturing scheme lapse after Reliance, Adani and others missed targets. The government offered subsidies but failed to cut red tape. Creating jobs for the country's giant workforce will require a Donald Trump-style all-it-takes approach.

US threat oils wheels of Pirelli’s China derisking

31 Mar 2025

The $6 bln Italian tyremaker is pressing its Beijing-backed shareholder to cut its 37% stake. Pirelli’s US growth plans may admittedly suffer if it doesn’t. But a shift might also enable tycoon Marco Tronchetti Provera to once again use geopolitics to improve his influence.

An $11 bln deal devalues ‘undervalued’ defense

20 Mar 2025

Beacon Roofing argued for months that bidder QXO’s cash offer slighted its real worth, only to acquiesce after a 0.08% bump. The knee-jerk rejoinder is a transparent ploy to squeeze more from suitors. It would have more power if CEOs and investment bankers invoked it less often.

Macron lacks the money to put where his mouth is

20 Mar 2025

The French leader wants Europe to boost defence spending. But with debt at 115% of GDP, France can’t easily find the 40 bln euros it needs to cover its share of the burden. The bloc’s strategic plans may be delayed by the fiscal woes of its main military power.

EU’s big Starlink headache is time, not money

14 Mar 2025

Investors seem confident $3 bln Anglo-French satellite group Eutelsat can replace Elon Musk’s company on Ukraine’s front lines. The swap could be costly, but this won’t deter a newly defence-focused EU. Whether the company can deploy what’s needed quick enough is another matter.

Tesla’s future may be more GM than OMG

4 Mar 2025

The $970 bln electric-car titan survived near-death experiences thanks to faith in CEO Elon Musk. Autonomous-vehicle and talking-robot hype turbocharged its valuation. Now rising rivals and political toxicity may herald sales stagnation, while its edge in tech could narrow.

Europe’s defence push provides cover for tax raid

3 Mar 2025

US hostility to its erstwhile European allies heightens the need for the continent to rearm. Extra spending increases pressure on already stretched finances. But leaders who gathered in London over the weekend have a consolation of sorts: the crisis is an excuse to raise taxes.

Rolls-Royce has sunny skies, with a fuzzy horizon

27 Feb 2025

The $80 bln engine maker’s stock rose 20% after it beat forecasts and raised targets. A strong backlog of work plus exposure to defence suggest the sweet spot can last. One longer-term uncertainty is how to enter the market for short-haul planes without taking on too much risk.

GM illuminates good times before they stop rolling

26 Feb 2025

When the Chevy maker was struggling with its electric transition and strike in 2023, it returned cash to allay shareholders. With tariffs and auto-loan stress looming, boss Mary Barra unveiled a fresh $6 bln stock buyback plan. It projects strength as weaknesses come to the fore.

How to raise $420 bln a year for Europe’s defence

24 Feb 2025

The partial breakdown in the transatlantic alliance means the continent may need to double its defence spending. The money will have to come from a mixture of national budgets, European Union funds and perhaps a new vehicle. Many sacred cows will be slaughtered on the way.

Nikola crash bookends capital market morality tale

19 Feb 2025

The electric-truck maker once worth $26 bln has joined a clutch of rivals in bankruptcy. The battery powered vehicle startups combined hard-to-gauge promise with big-up-front costs, yet nevertheless became SPAC darlings. The slower route to an IPO might serve a purpose after all.

Tank maker’s surge depends on political air cover

18 Feb 2025

Shares in $43 bln Rheinmetall have outperformed chip darling Nvidia since 2021 and doubled since the US election. Investors are implicitly assuming Europe will lift defence spending to at least 3% of GDP while hugely favouring the German firm. They could be wrong on either front.