Manufacturing

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.

EU joint defence debt has many hoops to go through

18 Feb 2025

European powers are contemplating the idea of a common borrowing vehicle to finance a big hike in military spending. But they need to agree on which EU countries are involved, and how to include the UK. In any case, it would only delay the fiscal cost of a major defence push.

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.

Smiths’ long-awaited split shows promise

31 Jan 2025

The $8.8 bln British engineer plans to either sell or spin off two of its four units. If all goes to plan, there’s more value for investors including activist Engine Capital. In the absence of a big uplift, the remaining high-margin divisions will be a more attractive target.

Orsted’s new skipper is stuck in same wind storm

31 Jan 2025

The $16 bln wind developer replaced CEO Mads Nipper with deputy Rasmus Errboe after writedowns on US investments. It may be too late to walk away from those projects. The new boss needs to better articulate the risks facing the group – and take steps to fix its balance sheet.

Elon Musk dangerously overrides Tesla’s autopilot

29 Jan 2025

The $1.2 trln electric-car maker should be on cruise control, with batteries and AI guiding it toward its lofty valuation. Instead, the CEO is steering things haphazardly, evidenced in part by the latest dip in gross profit margin. Driver assistance works in the boardroom, too.

DeepSeek rise blurs ASML’s AI-driven recovery

29 Jan 2025

Booming orders from customers like TSMC sent the $290 bln maker of semiconductor machines’ shares up 8%. But a Chinese model using fewer, less advanced chips is a threat, and may increase the risk of a US export purge. A return to last year’s heady valuation looks harder.

GM and US interests head in different directions

28 Jan 2025

The carmaker’s quarterly revenue and profit outpaced forecasts while EVs broke even by one metric. Boss Mary Barra is also bullish for 2025, but investors pushed the stock down 10%. As the $55 bln company’s AI vistas shrink and China rises, tariffs threaten its home-turf edge.

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.

Orsted’s management discount is back

21 Jan 2025

The $16 bln Danish renewables group saw shares slump 15% after new writedowns. CEO Mads Nipper can’t control rising rates, or US disdain for offshore wind. But a valuation below its operating assets implies investors once again don’t rate Orsted’s scope to forecast rising costs.

German election campaign ignores economic ills

21 Jan 2025

Europe’s largest economy shrank by 0.5% in the last two years and may stagnate in 2025. The crisis is due to structural flaws such as a lack of investment, an ageing population and a shrinking industrial base. The government that emerges from February’s poll will need to be bold.