Italy

Fiat can’t wait forever for Renault to sort itself

18 September 2019

The collapsed merger of the two car groups promised savings worth 33 bln euros. That’ll shrink if Fiat kickstarts its own electric-car investments rather than piggybacking on Renault’s. The longer the French take to win over hesitant ally Nissan, the less sense a Fiat deal makes.

Moncler sings like canary in China’s lux coal mine

18 September 2019

Boss Remo Ruffini’s statement of the obvious, that Hong Kong protests will dampen sales of its bling puff jackets, is a warning sign for rivals. With unrest deterring shopping-mad tourists, fully rebuilding on the mainland what’s been lost in the Fragrant Harbour will be tough.

Benettons’ credibility on the line in road fiasco

16 September 2019

The $20 bln infrastructure group accounting for half the wealth of one of Italy’s top dynasties is sinking deeper into a probe linked to a deadly bridge collapse. The damage risks infecting their shirts-to-motorways empire. Replacing Atlantia’s boss would be too little too late.

Telecom Italia chair takes one for the team

12 September 2019

Fulvio Conti says he may resign from the embattled group. While not himself the problem, he had become ill-suited to mediate between feuding investors Vivendi and Elliott. A new chair could help the $12 bln group move beyond its boardroom troubles and focus on its strategic ones.

Cox: Italy’s summer “coup” occupies fragile throne

10 September 2019

Investors reacted with relief bordering on euphoria after the anti-EU League was shut out of a new coalition government, led again by Giuseppe Conte. But the undercurrents that propelled the party into power are still strong. Italy’s elites may not be sufficiently chastened.

The Exchange: Enrico Letta

10 September 2019

Italy’s new coalition government, cobbled together from the centre-left and quixotic 5-Star Movement, has been greeted gleefully by markets and EU allies. But one former prime minister warns about complacency, calling for a reset with Brussels, tax cuts and renewed investment.

Vatican’s flaky finances pose Augustine dilemma

5 September 2019

The Holy See’s deficit doubled to 70 mln euros last year, a big chunk of its 300 mln euro spending. The sober route is for some Maastricht-style fiscal curbs. But low rates offer theoretical scope for a version of Saint Augustine’s famous wish for self-restraint, just not yet.

Italy’s budget is chance to reset EU relations

4 September 2019

The first test for Prime Minister Giuseppe Conte is to get his new administration’s sums to add up. Though debt is still rising, tightening spending while the economy weakens risks fuelling deeper anti-EU sentiment. Brussels should give the new government some flexibility.

Berlusconi and Bolloré vie for media booby prize

2 September 2019

The billionaires are fighting over Italy’s $4 bln Mediaset. Giant egos preclude the friends-turned-foes from joining forces to revive the broadcaster’s dwindling fortunes. While they feud, Amazon and Netflix are capturing the growth in European video consumption.

CNH can release valuation brakes with truck split

30 August 2019

The $14 bln Italian-American tractor-to-van group may spin off its struggling commercial vehicle unit, Bloomberg reports. Investors might pay more for a purer agricultural play. And independence might help the subscale vehicle business, whether on its own or in stronger hands.

Italy’s odd coalition offers deceptive stability

29 August 2019

The left-leaning Democratic Party and maverick 5-Star Movement are set to form a new administration under Premier Giuseppe Conte. That averts an election and a clash with Brussels. Past distrust and diverging views of business make the coalition as fragile as the previous one.

Dan Loeb could give Ray-Bans a better look

26 August 2019

The pushy U.S. investor is building a stake in $63 bln EssilorLuxottica, maker of the sunglasses brand and others. Although his plans are unclear, the company has unveiled another big deal despite the lack of a CEO and messy corporate governance. A fresh outside lens may help.

Italian odd-couple trade is market’s better hope

20 August 2019

PM Giuseppe Conte’s resignation speech was a clear pitch to lead another coalition government including the center left PD and hapless 5-Star. That’s still a shaky combination, but with a stronger pro-EU tilt and more fiscal discipline than the partnership it would replace.

Chinese tourists’ reverse-Marco Polo is no fluke

19 August 2019

The flow of visitors from the Middle Kingdom to Italy has jumped. That is the reward for becoming the People’s Republic’s new best European friend. The Communist party uses its $315 bln outbound tourism market to exercise soft power, helping friends and punishing foes.

Breakdown: Italian snap poll promises spicy autumn

12 August 2019

League leader Matteo Salvini has spoiled Italians’ summer by ditching support for his hapless coalition partner, the 5-Star Movement. He seeks an election to maximise popular support and rule solo. Italy’s complex parliamentary system means he will need to vault a few hurdles.

Election puts Italy on fresh EU collision course

9 August 2019

The ruling coalition’s collapse paves the way for a snap poll that will likely crown right-wing leader Matteo Salvini as premier. His planned tax cuts risk a new budget row with Brussels and sinking markets. The silver lining is that Italy’s banks are stronger than a year ago.

EU banks will struggle to exit value graveyard

7 August 2019

UniCredit, Commerzbank and ABN Amro all reported falls in first half pre-tax profit. Low interest rates threaten to crush revenue faster than CEOs can cut costs. Though euro zone bank shares have underperformed the wider benchmark by 15% this year, lowly valuations are justified.

End is in sight for Italy’s bad loan emergency

6 August 2019

The country’s banks have halved the pile of shaky debt from a 341 bln euro peak in 2015, helped by frantic sales. The pace at which good credit is turning sour has also slowed. New European Commission boss Ursula von der Leyen has one less hurdle on the way to a banking union.

Telecom Italia’s fixed woes creates M&A imperative

2 August 2019

The Italian telco is losing market share at its key retail fixed-line business despite a push to replace old copper lines with broadband. The rise of fiber-only network player Open Fiber poses a further threat. A plan to team up with the rival is assuming existential importance.

U.S. strength gives Fiat Chrysler an M&A breather

31 July 2019

The $21 billion Jeep maker is braving the car market downturn better than rivals. Record results in the key North American market produced better-than-expected operating profit. That gives boss Mike Manley headroom to cut costs while keeping an eye out for potential partners.