United Kingdom

LME win leaves one tricky question unanswered

29 Nov 2023

A court backed the London Metal Exchange’s decision to cancel $12 bln of nickel trades, rejecting a challenge by fund Elliott. The HKEX-owned venue has improved its standards. But the verdict does not address its conflict of being both a regulator and a commercial player.

Britain is case study in death-duty dysfunction

24 Nov 2023

UK politicians have been mulling inheritance tax tweaks. Death duties are good policy, but the British version is beset with exemptions that favour wealthy landowners and pensioners. Given the problem may worsen, there’s logic in cherry-picking from better approaches overseas.

UK’s overdue business-friendly budget has a catch

22 Nov 2023

Premier Rishi Sunak slashed taxes for workers and businesses at an annual cost of 20 bln pounds. It’s a partial antidote to the damage of Brexit, inflation and Britain’s dismal growth. Yet his party’s erratic policies, and poor chances at next year’s poll, will dent its impact.

Telegraph M&A twist hinges on Gulf leniency

21 Nov 2023

A vehicle backed by Abu Dhabi and a US buyout firm may take control of the newspaper by paying off the debts of its longtime Barclay family owners. Lender Lloyds would win. Yet it all hangs on potentially risky Gulf loans to the Barclays, whose main business is hardly thriving.

UK pay-later fiscal giveaway amounts to self-harm

20 Nov 2023

Faster growth and inflation may gift Rishi Sunak a 13 bln pound war chest ahead of Wednesday’s budget update. But that’s only thanks to optimistic math. If Britain’s prime minister opts for fiscal fireworks, he may torch public spending and singe Britain’s prospects.

Britain solves half of its wind power problem

16 Nov 2023

After a humiliating failed auction, the UK is hiking green energy subsidies. That will draw bidders, and the resulting power should still be cheaper than gas. But to hit a target of 50 GW of offshore wind by 2030, PM Rishi Sunak will need to allot more cash in new bidding rounds.

Mars’ posh pivot comes with a rich price

16 Nov 2023

The privately held Snickers maker is buying upmarket British brand Hotel Chocolat for $662 mln. Its premium products may benefit as consumers move away from cheap sugar-rich snacks. But UK shoppers are stretched, and Mars will need rapid growth to make an appetising return.

Vodafone CEO M&A job boosts Italy deal confidence

14 Nov 2023

After successfully offloading the telco’s UK and Spanish arms, Margherita Della Valle may sell all or part of its slowing Italian business. Rival Iliad is the top contender. But the division is now worth perhaps 2 bln euros less than what tycoon Xavier Niel offered last year.

Diageo’s Latin American pain risks spreading

10 Nov 2023

Shares in the spirit company fell 16% on a profit warning. Cash-strapped customers are buying cheaper tequila and whisky and switching to beer. But with interest rates at their current high levels, depressed demand could soon hit Diageo’s larger markets and rivals as well.

Farfetch turns from Richemont blessing to curse

9 Nov 2023

The $65 bln Cartier-owner hoped to fix a problem by flogging part of digital arm YNAP to the US-listed marketplace in a stock deal that involves extending $450 mln in credit. But Farfetch’s stock has dived and its finances are stretched. Its woes risk infecting the bling giant.

Payments mess sends warning on UK IPO revival plan

8 Nov 2023

CAB Payments’ stock fell 80% since its July listing, amid concerns over its business model. It suggests stock markets are already struggling to push back on risky issuers. A new light-touch listing regime may make such accidents more common, and London less appealing for floats.

Canary Wharf may yet avoid once-a-decade upheaval

6 Nov 2023

The main landlord of London’s key office district has tended to have a new owner every 10 years. The 300 mln pounds of equity injected by incumbents Brookfield and Qatar suggests they may buck the trend. That gives Canary Wharf scope to address its issues in a stable manner.

Japan’s rates tweak is careful and crafty

2 Nov 2023

The central bank changed its policy to allow higher 10-year bond yields. Unlike the US, it can afford to raise borrowing costs slowly as inflation is low. In this Viewsroom podcast, Breakingviews columnists explain why monetary tightening as others loosen may give Tokyo an edge.

Shell’s shrinking green pledge risks backfiring

2 Nov 2023

The $217 bln oil major has upped by 40% a quarterly buyback plan while curbing unprofitable low-carbon activities. CEO Wael Sawan’s focus on fossil fuels has shielded him from the troubles ensnaring BP and Orsted. The strategy can work only if volatile energy prices stay high.

BoE’s tough talk on rates ignores weak homeowners

1 Nov 2023

The Bank of England is set to keep borrowing costs steady this week but insist they will stay high to curb inflation. That may be hard, given the sick housing market has yet to feel the pain of past hikes. The UK may ease policy sooner than its peers will, and the market expects.

Vodafone CEO’s iffy Spain deal is better than none

31 Oct 2023

Margherita Della Valle is selling her unit in the country for 5 bln euros to a tiny investment vehicle. Part of her payment comprises shares in the highly leveraged buyer, which is yet to raise equity of its own. But even if that effort fails, the deal still works for Vodafone.

Sluggish BP earnings exacerbate its green dilemma

31 Oct 2023

The $105 bln UK giant missed quarterly net profit forecasts by 20% after weak gas results and a big wind writedown. That casts doubts on its clean energy division’s profitability while adding pressure to up its oil and gas game. Tackling both challenges requires creativity.

HSBC’s profit resilience may face sterner tests

30 Oct 2023

Europe’s largest bank doubled third-quarter earnings and is buying back $3 bln of stock, despite a hit from Chinese real estate. Yet the benefit of higher rates is wearing off while costs are stubbornly rising. CEO Noel Quinn’s targets leave room for bigger setbacks.

UK banking pain is a warning for European lenders

27 Oct 2023

NatWest fell 10% after slashing its 2023 revenue target on Friday. Brits are looking for better savings rates, meaning banks have to pay up or lose customers. Continental peers, like UniCredit and CaixaBank, may be at risk of suffering the same plight as their British rivals.

Europe’s oil majors are stuck as M&A party-poopers

26 Oct 2023

Exxon Mobil and Chevron’s respective decisions to double down on oil have put European peers Shell, BP and Total on the spot. Yet their lower valuations complicate share deals. The most obvious big targets for lower-carbon M&A are invitingly cheap, but look hard to get at.