Saudi’s oil lollipop reflects its sticky situation 5 Jun 2023 The kingdom has secured OPEC+ consent to extend output cuts into 2024, and will also lop another 1 mln barrels off its own daily production. But if traders bought OPEC’s demand forecasts, oil prices should be higher anyway. Saudi may also struggle to slash output any further.
Pirelli CEO pivots from globalisation to trade war 5 Jun 2023 Marco Tronchetti Provera teamed up with a Chinese buyer to take the tyremaker private in 2015. Now Sinochem’s 37% stake poses business and governance risks for the $5 bln company. An appeal to Italy’s nationalist government may help the veteran industrialist maintain control.
Greece’s reform labours are only half complete 5 Jun 2023 Investors like the euro zone’s former problem child, but a large current account deficit and corruption undermine its appeal. It’s not clear Kyriakos Mitsotakis will do what’s needed to boost savings and improve the rule of law if re-elected as prime minister, says Hugo Dixon.
Capital Calls: Turkey, Indivior 5 Jun 2023 Concise views on global finance: President Tayyip Erdogan’s new treasury minister will struggle to steer the $900 bln economy towards orthodox monetary policies; shares in the London-listed drugmaker jumped after it settled a lawsuit, making it more appealing to potential buyers.
Shein tries to thread US-China needle 5 Jun 2023 The $66 bln fast-fashion phenom is a formidable rival to Zara and H&M thanks to its data prowess and efficient Chinese supply chains – despite the trade war. Now geopolitics is forcing the company to rethink its identity right before it tries to list in the US.
President Dimon would be square peg in Oval hole 2 Jun 2023 JPMorgan’s longtime boss could get a head start on a 2024 White House run by capturing the powerful capitalist constituency. Beyond that, there are too many pitfalls. For one thing, he is an avowed free-enterpriser, a quality ill-suited for this particular executive office.
Economic policies sacrifice poor Americans 2 Jun 2023 Smaller tax refunds, higher prices, and changes to food stamps hurt customers that shop at low-cost retailer Dollar General. Student loan relief is under threat, and other entitlements may be rolled back. Cash is being sucked from the system – directly from the poor’s pockets.
Capital Calls: $6 bln pet buyout 2 Jun 2023 Concise views on global finance: Shares in UK veterinary pharmaceuticals group Dechra are trading 6% below private equity firm EQT’s new, lower bid. That looks too pessimistic given the chunky valuation on offer.
EU-UK clearing drama heads for prosaic finale 2 Jun 2023 The bloc is stalling on allowing UK firms to clear euro derivatives after 2025. That has set off a round of financial-stability finger-pointing. Costs may rise but systemic fears are overdone. If there were real danger, London could just pledge to follow Brussels’ rules.
Securonomics is fuzzy new lodestar for investors 2 Jun 2023 Globalisation, which lowered barriers for trade and financial flows, is in retreat. Taking its place is a doctrine that places national security above economic efficiency. Felix Martin argues the shift for money managers is profound – and throws up some big policy contradictions.
Indian ports will test tycoons’ safe harbour 2 Jun 2023 Sajjan Jindal’s JSW is floating India’s second-largest commercial operator. It’s less profitable than Gautam Adani’s $20 bln business where auditor Deloitte is waving a flag. In a global industry with few listed giants, appetite for this small deal will deliver its own verdict.
Biden’s America goes from oil guzzler to gusher 1 Jun 2023 The commodity’s main benchmark is including prices of oil from Texas, a reflection of a shift. Even as American demand stagnates, U.S.-based producers pump and export more. The president wants the country to be green. He can’t control the private industry that supports the world.
A $6 bln server deal is template for a mini-boom 1 Jun 2023 Buyers raced to pay sky-high prices for data centers feeding the cloud - until a market turn brought bankruptcies and tumbling shares. A bidding war involving Brookfield suggests the race is on again, as buyers try to exploit the last cycle’s exuberance and the next one’s hype.
Treasury buyers live for the moment, unfortunately 1 Jun 2023 Markets tend to brush off near-disasters when it comes to pricing U.S. debt. Yields fell as Congress struck a deal to avoid default, even though the Treasury is prepping a borrowing spree and rates are staying stubbornly high. Investors’ fingers remain firmly stuck in their ears.
IPO pops are iffy adverts for Gulf capital markets 1 Jun 2023 ADNOC L&S, like other floats by the UAE energy giant, surged on its first day of trading. Yet the 50% rise looks contrived. Abu Dhabi’s listings boom is narrow, and mostly involves state-linked firms. Its dreams of being a go-to destination for global capital are remote.
Syngenta’s bumper IPO will test Chinese appetite 1 Jun 2023 The seeds-to-pesticides group is planning a $9 bln stock market float in Shanghai this year. In this Viewsroom podcast, Breakingviews columnists explain how investors need to get comfortable with its high debt levels and use of toxic chemicals that could hurt its valuation.
Pricey services are weary ratesetters’ last battle 1 Jun 2023 The rising costs of flights, restaurants and concerts are hampering central bank efforts to drag consumer price inflation back down to 2%. In the US the post-pandemic consumption boom is fading. In Europe and the UK, though, higher wages are prolonging the fight.
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.