Italy

Starbucks’ Italy push may help it more at home

19 September 2018

The $74 bln coffee giant unveiled a massive espresso emporium in the centre of Milan. It sounds like the equivalent of carrying coals to Newcastle. But there may be some logic here if the buzz created around the Italian launch gives a jolt to flagging sales in America and beyond.

New Ferrari boss needs to prove green credentials

18 September 2018

Louis Camilleri fixed an initial blunder by reaffirming the targets of predecessor Sergio Marchionne. He also wants to sell more eco-friendly cars. Yet the goals look ambitious, and Ferrari is in the slow lane on hybrids. A late move into sports utility vehicles doesn’t help.

Regulator’s exit throws Italy fresh market test

14 September 2018

The head of the country’s financial watchdog resigned after ruling parties criticised his continuing ties with the European Commission. Mario Nava was appointed by the previous government. His replacement will face a challenge to dispel doubts of political meddling.

Ilva deal gives Italian business much-needed hope

7 September 2018

Rome has dropped its opposition to ArcelorMittal’s 4 bln euro swoop on Europe’s biggest steelworks. Scrapping Ilva would have been a victory for ideology over business logic and common sense. It’s an encouraging sign that the radical new government’s bark is less than its bite.

Vivendi gives Elliott a taste of activist medicine

6 September 2018

Telecom Italia is turning into the U.S. fund’s worst big investment in Europe. Vivendi, which used to run the telco and is its biggest investor, blames Elliott’s boardroom overhaul for the share price slump. Such squabbles distract from the problem of competition from new rivals.

Guest view: Italy’s autumn of discontent

4 September 2018

Market tensions are rising as the government prepares for negotiations with the European Union over the country’s budget for 2019. However, both Italy and the euro zone are better placed than before to cope with turmoil, writes Fabrizio Pagani of Muzinich & Co.

Foreign exodus to test Italy’s bond market buffers

31 August 2018

Fear of bold public spending is spooking foreign investors, making it harder for the government to fund itself. Italy can lean on banks and local savings to plug the gap. But gorging on debt hurts lenders and growth. And “Quitaly” concerns may lead Italians to move cash abroad.

Italy’s Trump card shows bond market fragility

24 August 2018

The U.S. President offered to buy Italian debt, according to one newspaper. Donald Trump may want to help a eurosceptic government but has limited scope to mitigate the damage that Rome’s policies are inflicting on domestic asset prices. Help is better sought closer to home.

Italy’s bond fix idea resembles covert bailout

21 August 2018

The economic spokesman of the ruling League Party says the euro will collapse unless the European Central Bank limits the gap between euro zone countries’ bond yields to 150 basis points. That bar is too low and would give big spenders free rein to dodge hard budget decisions.

Italy’s Atlantia hardball comes at a price

20 August 2018

The government may strip the group of a contract to manage Italy’s motorways after the Genoa disaster. Tough action is needed, but the move could cripple Atlantia and looks premature. The stock plunge is a reminder of why investors need to apply a bigger discount to local assets.

Italy bridge fallout will shape infrastructure fix

16 August 2018

Atlantia shares have fallen 30 pct on fears the government may cancel its contracts after a fatal bridge collapse. The tragedy reinforces the case for more investment. The government’s treatment of the toll-road operator will determine whether investors are willing to play along.

UniCredit’s valuation gap looks too wide

7 August 2018

Italy’s biggest bank by assets has been a perennial slowcoach compared to Intesa Sanpaolo. But its return on tangible equity warrants a valuation closer to that of its main rival. Especially as a broad European base can offset a slowing Italian economy and jittery markets.

Italian banks face worsening doom loop

3 August 2018

Rising sovereign yields since a radical government’s arrival hit capital buffers at Monte dei Paschi and peers. Weaker banks will hurt growth, feeding fears over Italy’s debt. More storms loom as the economy stutters, and the executive’s anti-business attitude spooks investors.

Prada’s hottest trend is investor FOMO

1 August 2018

The Italian label grew first-half sales 9 percent thanks to spruced-up handbags. Operating margins are almost two-thirds below their peak, but a full turnaround is priced in. Fear of missing out on the next Gucci-style makeover makes shareholders reluctant to wait for results.

Ferrari proves it can run mostly on autopilot

1 August 2018

New CEO Louis Camilleri inherits a firm in fine shape from Sergio Marchionne. While FCA cut guidance after its ex-boss’s death, Ferrari posted strong results, even if it qualified its outlook as “aspirational”. The Italian supercar maker looks nonetheless poised to motor ahead.

Generali faces debt cost conundrum

1 August 2018

The Italian insurer’s 5.7 pct average debt cost is pulled up by a slug of pricier hybrid debt. Buying it back would sort this and reduce the effect of spiking domestic bond yields on its solvency. The catch is that Generali will probably have to pay up to do so.

How Sergio Marchionne saved Fiat and Chrysler

30 July 2018

The automakers’ former boss, who has died at 66, rescued both from the wrecker’s yard. His push for breakups and consolidation also helped produce better shareholder returns than his main rivals. A new selection of Breakingviews columns offers a taste of his 14-year tenure.

Viewsroom: Sergio Marchionne’s legacy

26 July 2018

The sudden death of Fiat Chrysler’s CEO has robbed the car industry of one of its most colorful – and successful – leaders. Antony Currie, Rob Cox and Lisa Jucca look back over his 14 years at the wheel and discuss what’s on the road ahead for his successor Mike Manley.

China problems could be the making of new FCA boss

25 July 2018

Mike Manley’s first challenge is to complete Sergio Marchionne’s unfinished business in the Middle Kingdom. His predecessor failed to make inroads in the world’s biggest car market and the U.S. trade war has hit sales. FCA’s Jeep division could be helpful in turning the tide.

Cox: The Agnellis will miss Marchionne most of all

25 July 2018

Tragedy and a wise call by John Elkann, the family’s then-28-year-old figurehead, put the Italian-Canadian in charge at Fiat in 2004. Marchionne, who has died at 66, turned assets worth 5.5 bln euros into nearly 60 bln. As a CEO he may be replaceable; as Elkann’s mentor he’s not.