Italy

Peugeot needs FCA more than the other way around

25 March 2019

Carlo Tavares is reading from Sergio Marchionne’s script. A $45 bln merger would, in theory, deliver massive cost savings which could be invested in new technology. But politics makes that hard. And while PSA would gain a U.S. foothold the Agnellis would be pulled back to Europe.

Cox: Really, no one else will bid for Commerzbank?

19 March 2019

Berlin’s blessing of M&A talks with Deutsche may scare off interlopers. But Germany’s number two offers ING, UniCredit, Santander and others a unique chance to expand in the largest euro zone economy – and perhaps eventually move their HQs to Frankfurt to gain other goodies.

ING’s Italian ban is model in dirty-money fight

18 March 2019

The Bank of Italy has barred the Dutch lender from accepting new clients in the country until it tightens money-laundering controls. The sanction lacks the punch of ING’s recent $900 mln Dutch fine. But bans may be more effective when forcing Europe’s banks into action.

Italian Silk Road gambit is a double-edged sword

15 March 2019

Marco Polo’s daring travels turned Venice into a wealthy gateway to China; 750 years on, Rome wants to rebuild that special bond through infrastructure deals. Improving ties with a key trading partner makes sense. The risk of leaning East is that Italy loses clout in the West.

TIM shareholders should reject Bolloré board slate

12 March 2019

The Vivendi boss wants to replace five directors of the Italian telco’s board with his own. They don’t deserve to win, and the French mogul is already well represented. But the infighting needs to end. After the vote, TIM needs to appoint a new chairman who can unite both fronts.

The Exchange: Austerity in the age of populism

8 March 2019

Fiscal restraint is going out of fashion. In his new book “Austerity”, Harvard professor Alberto Alesina sets out to explain when it’s needed. He tells Breakingviews of the hidden long-term risks of U.S. President Donald Trump’s policies and why Italy’s debt risks are not over.

Moncler’s strength will whet its M&A appetite

1 March 2019

The Italian puffer-jacket maker’s 2018 sales grew 18 percent year-on-year, disproving fears it might miss out on the recent spate of strong luxury results. Moncler could become an LVMH-style sector aggregator. A rising net cash position and share price give it greater firepower.

Payments IPO can shrug off sluggish Italy

26 February 2019

Domestic market leader Nexi is seeking a listing that may value it at some 7 billion euros including debt. Cash-loving Italians have traditionally shunned bank cards and digital transactions, but that’s changing. Closing the gap promises decent growth, even in a slowing economy.

Telecom Italia is sending the right signals

21 February 2019

New CEO Luigi Gubitosi wants to share infrastructure with rivals Vodafone and Open Fiber to cut costs. The approach is sensible given Italy’s slowing economy and growing competition. Begrudged top investor Vivendi will find it harder to regain board control next month.

Italian grudge may steer Vivendi’s big M&A mandate

18 February 2019

Vincent Bolloré may be sore about JPMorgan’s work with activist Elliott in Italy. Yet the U.S. bank’s analysts lead the pack in valuing Universal, at a whopping $50 bln. As the media group chooses advisers to sell half of Taylor Swift’s music label, bygones may not be bygones.

Alitalia’s bidders are cruising for a bruising

14 February 2019

It’s like the start of a bad joke: Delta, easyJet and Italy’s railways walk into a bar and buy the national carrier. But there’s nothing funny about Alitalia’s serial cash incineration. Even if their goal is to thwart Lufthansa, the pain they’ll suffer isn’t worth the effort.

Bank of Italy attack shows growing radical bravado

12 February 2019

Government leaders vowed to overhaul the central bank’s board, citing past bank failures. The intervention looks like political swagger as rivalry within the League and 5-Star coalition gets fiercer. Existing rules should shield the regulator, but other institutions are at risk.

Franco-Italian diplomatic row may taint economics

7 February 2019

Paris recalled its ambassador in Rome to protest what it called baseless attacks. The fracas may hurt the countries’ ability to present a united front on revamping fiscal rules or bank reform. That would be a costly consequence of short-term electioneering before a European vote.

Fiat needs some driving support

7 February 2019

Shareholders wiped 10 pct off the Italo-American carmaker’s value after it forecast a weak 2019. Europe, in particular, is a concern. But It’s not the only carmaker struggling in the region. That should give CEO Mike Manley a chance to strike a partnership, the sooner the better.

Italy’s new top watchdog fails market test

6 February 2019

The government has nominated eurosceptic economist Paolo Savona as head of the markets regulator, an apparent demotion from his current ministerial job. Consob’s structure and EU rules limit his room for manoeuvre. Even so, the weakened body deserves a more independent boss.

Intesa gets as much market credit as deserved

5 February 2019

Italy’s top retail lender kept a dividend promise despite a weak fourth quarter and pruned 16 billion euros of dud loans from its balance sheet. That justifies its valuation premium over many rivals. But with the economy weakening at home, a richer one seems a big ask.

Franc gives West Africa good reason to like France

4 February 2019

Italy’s 5-Star says Paris is fuelling unemployment and migration by backing the region’s single currency. It’s true the 74-year-old franc keeps the zone’s 150 mln people oddly close to their old master. But its longevity proves the merits of stable prices over cheaper exports.

Ferrari boss’s new positivity has a downside

31 January 2019

Louis Camilleri sent the carmaker’s shares up 12 percent by pledging to hit a 2020 target in 2019. Investors spooked by his cautious driving when he took over last summer will be cheered. But the more the outlook chops and changes, the more investors will discount its durability.

Italy recession is oddly helpful for EU fiscal row

31 January 2019

The economy contracted for the second quarter in a row at the end of 2018. Rome is increasingly likely to miss a budget deficit goal of 2 pct of GDP but will get away with it. Imposing austerity during a broad-based euro zone slowdown makes no economic or political sense.

Abu Dhabi’s $6 bln oil deal is a three-way hedge

29 January 2019

The emirate has sold 35 pct of its oil group’s refining arm to two European producers. Italy’s Eni gets to offset a heavy reliance on exploration, while Austria’s OMV gets non-European refining. Abu Dhabi hedges its dependency on crude by turning crown jewels into cash.