Ryanair clear skies contain Boeing-shaped cloud 29 Jan 2024 Despite a weaker-than-expected third quarter, the $23 bln carrier still predicts record full-year net profit. Assuming holiday bookings hold up, that looks doable. But Ryanair is exposed to the uncertainty surrounding key supplier Boeing in a way that its close rivals are not.
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.
How a bold $60 bln deal went right yet so wrong 6 Dec 2023 Japan’s Takeda has cause to celebrate the fifth anniversary of its landmark acquisition of Irish peer Shire. Boss Christophe Weber achieved many aims, including broader reach and hefty cost savings. As with myriad mega-mergers, however, there’s little for shareholders to cheer.
Ryanair’s valuation can climb to a higher altitude 6 Nov 2023 Soaring demand means the 18 bln euro airline’s earnings are above even pre-pandemic levels. Investors’ recession fears have prevented Ryanair’s share price from reflecting the good cheer. Still, history suggests budget vacations are among the last things that consumers cut.
European listing exodus is just beginning 28 Sep 2023 Building materials firm CRH and packaging giant Smurfit Kappa are among a growing list of companies seeking to decamp from Europe to US exchanges. In this Viewsroom podcast, Breakingviews columnists discuss what is prompting groups to leave and why the rot is unlikely to ease.
Irish listing rot is symptom of wider EU malaise 25 Sep 2023 Packaging giant Smurfit Kappa may follow CRH in ditching Dublin for the US. The exodus, along with other potential defectors, will erode over half of the $172 bln exchange’s value. Without meaty subsidies or a pan-EU capital market, global firms have little reason to stay.
Smurfit $11 bln bid for dominance risks paper cut 12 Sep 2023 The Irish cardboard-box king is handing a roughly 40% premium to investors in US rival WestRock as part of a deal to form a sector leader. The price overshadows chunky cost cuts, implying low returns. Yet standing still in a rapidly softening packaging market is not an option.
Smurfit US deal would paper over post-Covid downer 7 Sep 2023 Europe’s No. 1 seller of boxes used by the likes of Amazon may merge with US peer WestRock to form a $20 bln giant. Smurfit Kappa snubbed a similar transatlantic deal in 2018. This time, synergies offer a logical way to offset a waning trend in pandemic-era home deliveries.
Ireland becomes guinea pig for booze clampdown 13 Jul 2023 Drinks like Guinness and Smirnoff vodka will feature cancer warning labels by 2026. It’s a bold move that will be watched closely by the US and Europe. If it’s a success and is replicated, rosy forecasts of alcohol sales soaring to $2 trln by 2030 may be revised.
‘Love Island’ maker can be saved by bold coupling 14 Jun 2023 ITV CEO Carolyn McCall is under pressure amid a scandal and a depressed share price. A breakup of the $4 bln broadcaster might help, but looks tricky. Bulking up the studio unit could create more value, if McCall can find a way to keep dividend-loving investors on side.
CRH’s firm foundations go beyond where it lists 2 Mar 2023 The $38 bln cement maker’s stock rose amid plans to move its primary listing to the U.S. The shift may indeed prompt a re-rating of CRH shares. But the main driver of the latter will be its even greater focus on an infrastructure subsidy-rich market, and on higher-margin work.
Tech mess hastens Irish economic turn inwards 11 Nov 2022 Multinationals like Meta Platforms bring in a quarter of Ireland’s $68 bln tax revenue, and the salaries they pay prop up its housing market. Now they’re shedding staff, the risk is a budget hole. Irish business may not like how a future Sinn Féin government would fill it.
UK’s Northern Ireland ploy is economic folly 14 Jun 2022 Boris Johnson is threatening to tear up the bespoke pact he agreed for the province in his Brexit deal. The prime minister’s position with the EU is weakened by the fact that Belfast is thriving under new trade rules. More political uncertainty may undermine the region’s success.
SlimFast maker could be tasty swig for Nestlé 4 May 2022 An activist wants Irish protein powder seller Glanbia to break up. Listing its consumer unit in the U.S. could double its 3 bln euro value, but would take time and carries risk. That opens the door to a cash-rich buyer like the Swiss giant, which is bulking up its health lines.
Stranded jets are least of plane lessors’ problems 14 Apr 2022 Big fleet-owners like AerCap may have to write off $10 bln of planes trapped due to Russian sanctions. Ultimately, though, insurers should cover their losses. A bigger brake on the aircraft-leasing industry’s rapid ascent is the rising cost of debt from jittery lenders.
Irish housing bind opens door to radical options 31 Jan 2022 The cost of renting in Ireland has soared, but so has the cost of buying a home. Regulatory reluctance to relax bank lending standards means demand won’t rise to help stimulate new supply. The impasse makes it more likely that leftist Sinn Féin may win the next election.
Northern Ireland row threatens its Brexit dividend 21 May 2021 British leaders have cast doubt on border arrangements they agreed following the country’s split from the European Union. It’s a blow for the province’s plan to lure foreign firms by offering access to both Europe and Britain. Its post-Brexit boom may be over before it started.
Corporate tax reform may help Ireland in the end 4 May 2021 The Emerald Isle’s allure as a low-levy destination will fade if a global minimum tax rate is agreed. Dublin wants to maintain its appeal by spending over 4% of GDP to fix problems like poor public transport. Such investment will lay the foundations for a more balanced economy.
Ireland bank exodus presages wider EU retrenchment 16 Apr 2021 Belgium’s KBC may flog most of its $12.3 bln of local assets to Bank of Ireland. NatWest just pulled the plug on Ulster Bank. Tough regulation, large incumbents and low rates played their part. The same factors will push other European lenders to retreat from far-flung markets.
Stripe’s $95 bln pop raises bar for payments hype 15 Mar 2021 The privately held group run by the Collison brothers raised money at almost triple its last valuation. It seems rich even next to listed peer Adyen. Investors in the companies are betting on a decade of breakneck growth. Rising competition means they can’t all be winners.