How Europe can contain damage from Brexit 24 Jun 2016 There are two ways for the EU to avoid copycat referendums. One is to doggedly insist that free movement and free trade are inseparable. The other is to flex that ideal. Doing so could neutralise populism and avoid a breakup of the euro zone.
EU rethink of bank debt better late than never 22 Jun 2016 The European Commission wants to harmonise rules for bank bail-inable debt. The current patchwork of different national regimes is confusing and impedes resolution. A single model would be simplest, but could limit flexibility. At the very least more standardisation is desirable.
Bollore’s Italian playbook won’t work at Ubisoft 21 Jun 2016 Vivendi, controlled by the French tycoon, owns over 20 pct of the video game maker and wants board seats. That tactic worked at struggling Telecom Italia, but Ubisoft is a different proposition whose founding family won’t go down without a fight. Minorities shouldn’t either.
France at risk of catching referendum bug 21 Jun 2016 Giving French voters a say on EU membership would pose a far bigger risk to the bloc than the British vote. Mainstream Gallic politicians know this. Yet the rise of the far right could make it tempting to take the sort of pre-election gamble that enticed UK premier David Cameron.
Batteries will short-circuit old business models 16 Jun 2016 Cheap, powerful batteries are almost a mass-market reality. The U.S. storage market could grow 45 pct a year, as prices plunge. It’s great for green energy suppliers, and those who like clean air - but less so for old-school utilities, and possibly makers of batteries themselves.
If Schneider wants Aveva, it should get real 15 Jun 2016 The French group has egg on its face after the UK software-maker snubbed a merger bid for the second time. Schneider’s decision to use a similarly over-complex deal structure hints at why. Given an Aveva tie-up still makes strategic sense, an all-cash offer is the way to go.
Brexit is reopening euro zone sovereign wounds 14 Jun 2016 France’s bond yields are rising while Germany’s are falling. It’s a warning markets may doubt the integrity of the euro zone if a UK exit triggers copycat referendums. The ECB has neither the power nor the mandate to fight the kind of extreme outcomes that could ensue.
How Cameron could still pull plug on Brexit vote 13 Jun 2016 Picture the scene: the UK's referendum on EU membership looms, and polls have swung heavily in favour of leaving. Panic grips 10 Downing Street. Yet there may be another way. Breakingviews imagines how a senior advisor to the prime minister might suggest the unthinkable.
France finds wrong way to send banks right message 8 Jun 2016 A court has ordered SocGen to pay compensation to rogue trader Jerome Kerviel for wrongful dismissal. It sounds absurd. After all, he cost the French bank 4.9 bln euros. But it serves as a useful reminder that the failings of the pre-crisis financial system were a team effort.
Dixon: Fiscal union has no place in EU Brexit plan 7 Jun 2016 European politicians’ knee-jerk reaction if Britain votes to quit the European Union will be to integrate further. This would be foolish, provoking a populist backlash. A better response would be to loosen fiscal policy while embarking on bolder economic and market reforms.
Keeping Kuka German may require going French 1 Jun 2016 Economic minister Sigmar Gabriel is trying to forge a counterbid for the robot maker. Yet Chinese Midea’s $5 bln offer is already frothy. Berlin would have to turn to industrial politics à la française, and maybe even take a direct stake. Better to let markets run their course.
“Because it’s France” no basis for EU budget rules 1 Jun 2016 Jean-Claude Juncker used that to explain why France wins more fiscal leeway. This might be worrying coming from the head of the European Commission, which enforces budget discipline, if it weren't already plain. Blindly applying rules is foolish, as is regular failure to do so.
Hermes shows scarcity is still a classic 1 Jun 2016 A Birkin handbag fetched $300,000 at auction in Hong Kong, a new world record - even though sales in the wider luxury sector are hitting the skids. The lesson for rivals is that rarity still elicits demand. That's cold comfort for luxury brands that have grown too big
Strikes upset France’s reform calculus 24 May 2016 Labour law changes forced through by the Socialist government are sparking strikes in refineries, ports, and railways. The benefits of the measures were watered down when the reforms were diluted. Protracted social unrest could deter investment and push up the costs.
Technip/FMC deal forged for a low oil price world 19 May 2016 France’s oil and gas services group is merging with US rival FMC Technologies. The all-share deal divides board seats and $400 million of annual synergies roughly equally. More to the point, it creates a business that can better compete for large projects in an oil price slump.
Burberry could use refresher in old-school retail 17 May 2016 A sector-wide slowdown has exposed the inefficiencies in the UK label’s operations. High costs and low sales density show room for tailoring. Burberry chief Christopher Bailey needs help, but of a less than luxurious kind - specifically, some traditional retail expertise.
Feeble margins could stall Alstom’s speed-up 11 May 2016 The French train maker boasts a strong balance sheet, record order intake and big mid-term growth ambitions. Yet a lacklustre operating margin of 5.3 pct leaves little room to cope with intensifying global competition. Sorting this quickly should be Alstom’s key focus.
Nokia could spend a year on hold 10 May 2016 The Finnish telecoms group saw a 9 percent year-on-year drop in Q1 sales, in the first combined set of numbers since its 15.6 billion euro Alcatel-Lucent tie-up. Gross margin improved and synergies have been revised up. But slow mobile equipment sales remain a standout.
SocGen gets nose in front of BNP and EU peers 4 May 2016 France’s third bank by assets added more capital than BNP Paribas, with better returns. It also trounced fixed income trading rivals with a 17 pct revenue increase. SocGen’s decision to cut 220 mln euros more costs could provide cover against future rises in bad debts.
BNP keeps capital catch-up plan on track – just 3 May 2016 The French bank’s revenue shrank less than costs, reversing the dynamic from the previous quarter and helping returns to improve. BNP needs profits to bring solvency in line with peers. But it would help if earnings were driven by a higher top line, not just lower bad debts.