Society

Heineken dilutes beer’s merrier future

14 Feb 2024

The $54 bln group’s higher prices led to lower volumes, at odds with Carlsberg’s cheerier numbers. Diageo reckons drinkers are shifting from spirits to beer, which should help brewers. Still, without clear evidence investors may not price in the growth a windfall should imply.

Ignoring migration’s roots will cost the West dear

12 Feb 2024

Politicians in the US and Europe are devoting much energy to stopping illegal migrants. But this will achieve little unless they also tackle the drivers of migration: poverty, conflict, and climate change. Otherwise, politics in the rich world will become increasingly toxic.

The obesity drug craze is entering its next phase

8 Feb 2024

Eli Lilly and Novo Nordisk can’t keep up with demand for their weight loss medications. In this Viewsroom podcast, Breakingviews columnists discuss the hype among celebrities, the different approaches to prescribing them in the US and Europe, and how they can reshape the world.

Four-day week is clever fix to economic malaise

24 Jan 2024

Companies including EssilorLuxottica and Panasonic are experimenting with shorter working weeks. Pilot schemes have led to revenue increases, declines in burnout rates and lower churn. It’s an anti-inflationary way to keep staff happy and give them free time to consume more.

Davos holds up funhouse mirror to shifting world

22 Jan 2024

Delegates from the Middle East and India made a splash at last week’s World Economic Forum, reflecting their wealth and investment appeal. Europeans and Chinese were subdued. Big Tech looks the winner from AI. This year’s Swiss conflab arguably exaggerated more than it distorted.

Capital Calls: Birkenstock

19 Jan 2024

Concise views on global finance: The German sandal maker gets a reality check from investors three months after its much-hyped IPO.

China’s war on corruption turns into high wire act

18 Jan 2024

Xi Jinping is declaring victory in his decade-long war on graft. He has made more progress than India and the US over the same period by some global standards. Yet the decision to double down on cleaning up the finance sector when the economy is weak could come at a heavy cost.

Capital Calls: UK homebuilders

10 Jan 2024

Concise views on global finance: Expectations of mortgage rate cuts helped Persimmon exceed sales targets, giving another lift to its resurgent stock price. The optimism, however, warrants a reality check.

AI startups’ key challenge is creativity, not cost

9 Jan 2024

Developing humanlike models is notoriously expensive. In this Exchange podcast, venture capital investor Konstantine Buhler of Sequoia Capital discusses how new breakthroughs are starting to lower costs and how that presents opportunities for challengers like OpenAI.

Rich nations can learn from Ireland’s health shift

9 Jan 2024

Dublin wants to build a universal healthcare system. Phasing out a US-like insurance model is bold and could require 20 bln euros from the state. Countries thinking of similar overhauls to deal with waiting lists and ageing citizens will need money and political consensus.

Hong Kong-China travel flip is a new headache

8 Jan 2024

It is one year since the border reopened and fewer mainlanders are arriving in the offshore hub. But Hong Kongers are increasingly travelling to Shenzhen and beyond to shop and eat. That’s a blow for the Asian centre's retail and property, and part of the shift looks permanent. 

Global polycrisis could yet have not-so-bad ending

8 Jan 2024

From war in Gaza and Ukraine to superpower rivalry, climate change and slow growth, there is a lot of danger in the world. The possible return of Donald Trump as US President is another risk. But there are more optimistic scenarios - and some silver linings in pessimistic ones.

Capital Calls: Roche, Brookfield/Origin

4 Dec 2023

Concise views on global finance: The $224 bln Swiss drugmaker is splurging $2.7 bln on obesity drug developer Carmot; the Canadian investment firm’s joint $13 bln bid for Origin Energy has failed. The trick now is to show what lessons it’s learned from its 16-month-plus campaign.

Drug shortages demand quick and costly action

7 Nov 2023

Chemotherapy and penicillin ran short over the past year amid supply-chain disruptions and regulatory pressure. In this Exchange podcast, Dr. Steffen Denzinger, president of the European Fine Chemicals Group, argues that safeguarding medicines may require patients to pay more.

Obesity revolution gorges on dialysis maker

11 Oct 2023

Shares of Fresenius Medical Care fell 20% after a trial showed a Novo Nordisk drug reduced the risk of kidney failure. It highlights how fast-growing weight-loss treatments will pummel other areas of medicine. The blow may push Fresenius and its parent into corporate surgery.

Nobel Prize points way to closing gender pay gap

9 Oct 2023

US economist Claudia Goldin won the Swedish award for showing that wage inequality between men and women spikes after children are born. Governments can rectify that by funding childcare instead of fossil fuels. A more balanced workforce will boost tax revenue and spur growth.

Belated euro U-turn could be a winner for Sweden

6 Oct 2023

Top advocates of snubbing the single currency 20 years ago are now pushing for its adoption. The crown’s fall makes curbing inflation harder, and rate-setters are under the ECB’s spell. With low public deficit and debt levels, Stockholm may find joining late is better than never.

Capital Calls: Food prices, Brookfield, SPAC spin

3 Oct 2023

Concise views on global finance: The cost of ingredients for the average UK meal fell 0.1% in September; the Canadian giant’s $1 bln renewables deal reflects how European green assets are getting more appealing; Singapore’s SPAC puts a new spin on blank-cheque targets.

Germany risks letting a good crisis go to waste

3 Oct 2023

Europe’s largest economy is on track to shrink this year. The immediate causes are lower exports to China and higher energy prices. But decades of under-investment will continue to crimp growth unless Berlin ditches its hostility to fiscal stimulus and comprehensive reforms.

Anti-obesity drugs can shrink more than patients

20 Sep 2023

Wegovy and other weight-loss treatments could transform public health. That may hurt medical, food and fitness companies, while potentially affecting activities from drinking to gambling. This shrinking revenue demands a new investment concept: total unaddressable markets.