Sweden

Ericsson’s turnaround signal may weaken

20 October 2017

The telecom-kit maker’s results were less grim than expected, but sales are shrinking, and its operating margin is still feeble. New chief Borje Ekholm will struggle to meet his ambitious profit target unless he can shut – or find buyers for – its various loss-making units.

IKEA digital surrender raises flicker of IPO hope

10 October 2017

The Swedish furniture firm has grown through its warren-like stores and without needing external capital. Yet it now plans to sell through websites like Amazon to reach new customers. With competitive pressures growing, IKEA might also revisit its aversion to selling stock.

New Ericsson chair half-solves governance problems

9 October 2017

Ronnie Leten had a successful eight-year run at Atlas Copco. His arrival as chairman of the embattled Swedish telecom group will help make up for the CEO’s relative lack of experience. But both men’s links to long-term shareholder Investor AB make a radical overhaul less likely.

Anil Ambani’s telecoms empire is slipping away

3 October 2017

Now that a merger of its mobile unit has failed, the Indian tycoon is running out of options to keep control of his flagship Reliance Communications while reducing its $7 bln of debt. One creditor has already petitioned for insolvency. Others may soon run out of patience too.

Viewsroom: Harvey’s path of financial destruction

7 September 2017

Texas is facing $180 bln in hurricane cleanup costs, the most of any U.S. natural disaster. The Lone Star State has the wherewithal and chutzpah to cover a large chunk, yet expects Washington to pick up most of the tab. Global water risks, meanwhile, may require $12 trln to fix.

Swedish banks unfairly left out in the cold

7 September 2017

The likes of SEB, Handelsbanken and Nordea are stable, well capitalised, and dull. Investors have spurned them in favour of eurozone banks. Yet the Swedes’ generous dividends are attractive – and if Nordea’s move to Finland leads to lighter regulation, they may get more so.

Nordea shows governments who rules the roost

6 September 2017

The Swedish bank is moving to Finland. The move will save $1.3 bln and lower capital charges, but the real winner is Europe’s regulator, which was the main draw. It’s a tangible demonstration that banks and investors want common rules, and a warning to governments that go it alone.

Water woes may leave green-car hopes high and dry

28 August 2017

Ford is the latest to ramp up electric-vehicle production with a deal in China. But the industry relies heavily on the Democratic Republic of Congo for a crucial battery material. Drought, abysmal infrastructure and conflict could put ever-increasing supply needs at risk.

Spotify’s business model is an unfinished symphony

25 August 2017

The streaming service is closer to an IPO after sealing deals with music labels like Warner. But Spotify’s ability to turn a decent profit is still in doubt since it may not have won much ground on royalties. Apple and Amazon also pose threats that could deter investors for now.

Swedish banks prepare for mini-reverse Brexit

20 July 2017

Nordea has hinted it may leave its home country unless Stockholm joins the EU banking union. Sweden would have to surrender control over banking rules, but would get stable regulation and economies of scale. The UK, which is pulling away from the EU, looks ever more an outlier.

Ericsson throws kitchen sink at the kitchen sink

18 July 2017

The Swedish telecom kit maker has issued its second profit warning in four months. Demand for wireless networks is shrinking faster than thought. At least Ericsson is no longer losing market share, and has put a number on touted cost savings. It can’t afford to disappoint again.

AstraZeneca’s 3 billion pound CEO is overvalued

13 July 2017

That is how much was wiped off the drugmaker’s market value after a website reported Chief Executive Pascal Soriot will join Teva. Any such exit would hardly inspire confidence, coming after another senior departure and before a key medical trial. But the reaction is excessive.

Volvo’s electric shift gives Tesla a shock

5 July 2017

The Sweden-based carmaker will phase out gasoline-powered vehicles starting in 2019. It has less than 1 percent of the global market but its plan challenges Elon Musk’s growth ambitions, especially in China, where Volvo owner Geely is based. The road to the future may be bumpy.

Hexagon would be a pointy-edged takeover target

14 June 2017

At a price of almost $20 bln, the Swedish manufacturing software group offers a poor return for a buyer. That may not deter a rival such as ABB tooling up for the switch to automated factories. If globalisation goes into retreat, such a deal could even prove forward-thinking.

Activist adds teeth to Ericsson’s turnaround

31 May 2017

Cevian has taken a 5 pct stake in the Swedish telecoms-kit maker. Boss Borje Ekholm’s strategy of slimming down and boosting margins is sound, but lacks credibility as he was on the board when things turned sour. It can’t hurt to have a big investor breathing down his neck.

Ericsson turnaround has a static problem

25 April 2017

The Swedish telecoms kit maker made a $1.4 billion first-quarter operating loss after provisions and writedowns announced in March. New boss Borje Ekholm has the right strategy. But investors will still fret about further nasty surprises and a lack of progress on non-core sales.

Swede tissue bid justifies breakups without tears

13 April 2017

Forestry group SCA reportedly received an offer for the hygiene business it is about to demerge. Above $22 bln for the unit’s equity would be good. Either way, SCA has given itself options. Others faced with calls to break up, from Akzo Nobel to BHP Billiton, can take note.

Spotify considers listing without I, P and O

7 April 2017

The $8.5 bln music-streaming service may float shares without raising capital. A new deal with Universal could make cash needs less urgent. Private funding also has altered startup models. Even so, there's a reason most firms don't march to the beat of a different IPO drummer.

H&M may struggle to dress two markets

30 March 2017

Sales at the fashion retailer missed its target, sending shares close to a four-year low. H&M is opening stores in fast-growing emerging markets, while launching a posh new brand to liven up flagging rich-country sales. It’s tough to find a business model that suits both.

Ericsson has solid targets but odd repair man

29 March 2017

Boss Borje Ekholm has new objectives to sort out the Swedish telecom-kit maker, whose stock has halved in value since mid-2015. Lifting depressed margins would be a challenge even for an outsider. It will be especially tricky given he sat on Ericsson’s board as it misfired.