Considered View

The world’s most important person who missed Davos

27 January 2020

It wasn’t a billionaire or a world leader – at least not yet. But the Democrat who will take on Donald Trump for the U.S. presidency in November cast an unavoidable specter over the week’s proceedings. The race and its potential outcomes are as open as they were four years ago.

Saudi Newcastle punt is not as silly as it sounds

27 January 2020

Riyadh’s wealth fund is mulling a 340 mln pound takeover of the English soccer club. It’s another eyebrow-raising move in Saudi’s efforts to diversify its economy. But a repeat of Abu Dhabi’s successful reboot of Manchester City could help repair the kingdom’s tarnished brand.

China puts Washington into awkward M&A role

24 January 2020

The government faces the temptation to broker new tie-ups to mitigate the blacklisting of telco Huawei, and unwinding of China-related mergers. True, Beijing-bashing could inspire other deals: think Cisco buying Nokia. But Washington is better as an onlooker than a matchmaker.

Bayer settlement only slightly eases Monsanto pain

24 January 2020

The German chemicals group may spend $10 billion compensating alleged cancer victims of its acquisition’s Roundup weed killer. That would be better than CEO Werner Baumann’s worst fears. But it barely makes his ill-starred $66 billion deal look any better.

Progress can’t dispel viral risk to world GDP

24 January 2020

It has been decades since a pathogen as frightening as new coronavirus has spread. Biotech advances and China’s modernization helps catch diseases earlier, but easier travel speeds dispersal. Vaccine development is slow. Economic damage, from mild to $3 trln, is up to chance.

UK belatedly bares antitrust teeth over tech M&A

24 January 2020

Competition authorities may probe Takeaway.com’s Just Eat deal, even though the buyer doesn’t operate in Britain. As with its Amazon-Deliveroo inquiry, the regulator’s logic borders on paranoia. That’s better than the naivety it showed with Facebook’s 2012 Instagram purchase.

Ericsson gives glimpse of pain from 5G squeeze

24 January 2020

An earnings hit from a U.S. mega-merger is only one headache for the $28 bln Swedish telecoms firm. Britain appears to be throwing a lifeline to Chinese rival Huawei. And mobile operators are pushing hard to break the pair’s grip over the $500 bln market for next-generation kit.

Remy Cointreau’s woes are weighty but temporary

24 January 2020

The spirits maker is relatively more exposed to Hong Kong and China, so protests hit sales harder. The coronavirus and U.S. trade war fallout add extra pressure. But with demand for pricey cognac on the up, Remy still deserves a premium to Diageo and Pernod Ricard.

Atlantia charts tentative path to road truce

24 January 2020

The $19 bln infrastructure group’s new boss wants outsiders to invest into its units. These include embattled motorway operator ASPI, which risks losing a rich road concession after a bridge collapse. Opening ASPI’s capital to state investors offers a way out of the crisis.

Wuhan virus will shape China’s smart city vision

24 January 2020

The metropolis of 11 mln is under quarantine. Big investments in healthcare, AI and even surveillance led by the $50 bln Hikvision and other giants could help curb future contagion risk. That might compensate for less tractable problems: human error and institutional weakness.