Italy

UniCredit’s boss needs currency more than deals

15 April 2021

The Italian bank’s new CEO is a veteran rainmaker. But UniCredit’s lowly share price makes M&A difficult and expensive. A hyper-focus on improving the lender’s returns will bolster UniCredit vis-à-vis prospective targets. Andrea Orcel’s best deal is not to rush into one at all.

DiaSorin wisely hedges against Covid-19 test slump

12 April 2021

The Italian diagnostic group which has benefited from pandemic demand is buying smaller U.S. peer Luminex for $1.8 bln. Thanks to hefty cost savings the deal makes financial sense. With vaccinations accelerating, it’s a good time to seek more enduring sources of revenue.

Benettons avoid crash at end of Italian road feud

1 April 2021

Atlantia, part-owned by the clothing-to-infrastructure clan, looks set to sell its motorway unit for 9 bln euros to a group led by state investor CDP. The sale should end a row with Rome and cut debt. For the new owners, rising investment means the returns will hardly be racy.

Draghi’s corporate inbox will keep flashing red

31 March 2021

Rome’s to-do list, left over from the last government, includes selling dud bank MPS, resurrecting carrier Alitalia, expanding broadband and ending a motorway row. With vaccinations and recovery his legacy, these secondary tasks will slip to the bottom of Mario Draghi’s pile.

Stellantis finds limits of cost-cutting

3 March 2021

The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.

EU support is mixed blessing for Mario Draghi

17 February 2021

Italy’s prime minister laid out an ambitious overhaul of the public sector and judiciary to help the euro zone economy to grow out of its debt. Europe’s $250 bln of recovery funding will help. Central bank bond-buying, however, means there’s less urgency for change.

Draghi cabinet full of Super Marios in disguise

12 February 2021

Italy’s next premier pulled together a dream team of executives and party bigwigs to see the country through the pandemic. The choices are almost irrelevant. Mr. Whatever It Takes will use his personal clout to shape a reform agenda and put 209 bln euros of funds to good use.

Draghi can finish old Italian bank job

10 February 2021

As Bank of Italy chief, Mario Draghi oversaw a bank merger wave that left Monte dei Paschi overstretched. As Italy’s next premier, he will get to decide the bailed-out lender’s fate. Selling it to a rival won’t come cheap but should spare taxpayers an even bigger bill in future.

Enel will be hard to dislodge from green perch

5 February 2021

The Italian utility has become one of the world’s top renewable energy players and achieved stellar returns under CEO Francesco Starace. A booming green market and a big project pipeline mean its lead will outlast his tenure. Oil majors entering the market will trail behind.

Stellantis boss Tavares faces triple challenge

4 February 2021

The new Italo-French carmaker trades at a discount to peers. Carlos Tavares’ cost-cutting record offers investors some comfort he can get 5 billion euros of annual savings. To go beyond that he’ll need to figure out China, e-vehicles and revive struggling brands like Alfa Romeo.

Viewsroom: Bezos takes step back, Draghi steps up

4 February 2021

Amazon founder Jeff Bezos is handing the baton to Andy Jassy so he can spend more time with his rockets, a move that’s not always smooth sailing, Jennifer Saba tells Rob Cox. Meantime Mr. Whatever It Takes, Mario Draghi, is summoned to save Italy and Europe’s Hamiltonian moment.

Draghi comes to rescue of EU’s Hamiltonian moment

3 February 2021

Italy’s president is to pick the ex-ECB boss as the next prime minister. The implications go well beyond Rome. Aside from resolving a mid-pandemic political crisis, Mario Draghi’s credibility and skills can help ensure that 209 bln euros of mutualised EU funds are spent wisely.

Speed-loving billionaires to keep Ferrari running

2 February 2021

The luxury carmaker reported an 8% revenue drop during the pandemic and was cautious on future profit. Much of the hit stemmed from F1 woes rather than dwindling appetite for supercars. At least the next CEO can take some comfort from a rising cohort of the global super wealthy.

Orcel gets second chance with UniCredit top job

26 January 2021

The Italian lender is set to pick the former UBS banker as its new chief executive. It gives Orcel an opportunity for redemption after a pay row cost him the chance to be Santander CEO. The former dealmaker’s first task will be to resist a rescue of state-owned Monte dei Paschi.

UniCredit CEO race is deceptively crowded

15 January 2021

Senior bankers including Andrea Orcel are in the run to lead the $21 bln bank. The new boss will need to navigate Italy’s intricate political and financial landscape, have clear international standing and a collegiate approach. That rules quite a few of the contenders out.

ECB mantle will cloak Italy’s new political crisis

13 January 2021

The country’s government is collapsing amid internal squabbling. That may complicate tapping some 200 bln euros of EU funds, hurting the recovery, or even lead to messy elections. Central bank boss Christine Lagarde’s monetary bazooka should cushion debt market jitters, for now.

Rome’s UniCredit M&A gift is of questionable value

7 January 2021

The lender’s shares rose after Reuters said the government may absorb 14 bln euros of its dud loans to ease a Monte dei Paschi merger. It makes a deal with the basket-case bank more palatable. But UniCredit investors should care more about legal risks and future government sway.

Ferrari’s next boss will need luxury credentials

14 December 2020

The race is on to replace CEO Louis Camilleri, who suddenly quit. Fiat boss Mike Manley ticks many boxes, but John Elkann, chair of both groups, needs him to smooth a merger with Peugeot. Leading $42 bln Ferrari will be as much about enhancing its bling status as engine parts.

Del Vecchio channels Arnault spirit on eyewear bid

10 December 2020

Like the LVMH founder, the Ray-Ban billionaire is suffering from buyer’s remorse. His EssilorLuxottica may rethink its pre-pandemic 7 bln euro bid for GrandVision. The glasses retailer won’t easily find another buyer. As with Tiffany, a lower price is the most likely outcome.

The Exchange: Journey of a vaccine

8 December 2020

Covid-19 vaccines developed by Pfizer, Moderna and AstraZeneca may soon be available for distribution. But how do you deliver billions of vials across the world? Rob Coyle, pharma head at freight giant Kuehne+Nagel joins Lisa Jucca to discuss how to meet the logistics challenge.