The green agenda’s best shot at a revival 13 Feb 2024 Economic distress prompted by globalisation undermines support for the energy transition, climate change economist Valentina Bosetti tells The Exchange podcast. That matters as key US and EU elections approach. Using proceeds from carbon taxes to address inequality is paramount.
Capital Calls: Bayer breakup 8 Nov 2023 Concise views on global finance: The 40 bln euro German seeds-to-drugs maker is considering splitting off its consumer or crop science divisions, but may still be left with a more unwieldy structure than its pharma peers.
Polish cereal showdown goes against the EU grain 4 Oct 2023 A spat over Ukraine’s grain exports is the latest blemish on the European Union’s fraught relationship with Poland, the bloc’s sixth largest economy and biggest net recipient of EU funds. If upcoming elections push Warsaw further from Brussels, both sides have much to lose.
Black Sea wheat war is sideshow for grain deal 9 Aug 2023 Russia is bombing Ukraine’s Danube ports while Kyiv hits its enemy’s ships in the Black Sea. Bumper harvests can cushion the shock on global wheat prices. But it would be in the two warring countries’ interest to strike a new food transport pact to allow their lucrative exports.
Egypt’s food tightrope has petrodollar safety net 24 Jul 2023 The collapse of the Russia-Ukraine grain deal is a big problem for the world’s top importer of wheat. Egypt’s battered economy will struggle as food prices spike. A $400 mln lifeline from the UAE, flush with oil cash, is one of leader Abdel Fattah al-Sisi’s few crumbs of comfort.
Capital Calls: Thames Water, Bayer 10 Jul 2023 Concise views on global finance: The indebted UK utility secured a pledge from shareholders to cough up 750 mln pounds over the next two years; the German conglomerate could help long-suffering investors by undoing the disastrous Monsanto deal.
Bunge’s $22 bln Viterra deal is a tolerable muddle 13 Jun 2023 The US crops merchant agreed to buy its peer, half-owned by Swiss commodities giant Glencore. Grain inventories cloud the math on the combined company’s debt-load. Even so, the strategic rationale, valuation multiple and savings worth $1.8 bln more than make up for the concern.
Capital Calls: London crypto move, Stellantis SPAC 12 Jun 2023 Concise views on global finance: British Prime Minister Rishi Sunak welcomes Andreessen Horowitz’s UK office just as cryptocurrencies face a regulatory crackdown in the US; the European carmaker’s move to back a London blank-check vehicle is less hairy than it sounds.
Syngenta’s bumper IPO will test Chinese appetite 1 Jun 2023 The seeds-to-pesticides group is planning a $9 bln stock market float in Shanghai this year. In this Viewsroom podcast, Breakingviews columnists explain how investors need to get comfortable with its high debt levels and use of toxic chemicals that could hurt its valuation.
Olam’s Saudi-Singapore IPO is food for the future 31 May 2023 A $1 bln dual listing of its agri unit is delayed. A pause may help Saudi justify what it paid for a 35% stake. Yet the float will improve the company’s financial strength and its ability to shore up food security in the Gulf, so there’s good reason to get this complex deal done.
Glencore’s Bunge redux may yield Teck benefits 26 May 2023 The Swiss commodity giant could merge the agri-trader it part-owns with its $14 bln US-listed peer. A Bunge deal would be oddly timed, and Glencore has other ways to raise cash. But the bid may offer a way to spur Glencore’s share price as it mulls a new offer for Canada’s Teck.
Syngenta’s China listing tweak seems a demotion 18 May 2023 The agrichemical giant scrapped a $9 bln IPO on the Nasdaq-like STAR Market to list on Shanghai’s main trading board instead. Beijing probably hopes to make Syngenta a poster child for the venue’s revamp without downsizing the offering. Valuations would suffer regardless.
Capital Calls: AT&T’s magic number falls short 20 Apr 2023 Concise views on global finance: The $140 billion telecom giant, now free from its tangled M&A past, has one metric to deliver on: cash to support its dividend. But that figure fell 64% in its first-quarter results.
War on cow farts is stinky but necessary job 24 Mar 2023 Cattle’s digestion is a big driver of harmful gas emissions. To curb them, New Zealand is taxing farmers and Europe may shrink livestock numbers. Both steps have angered harvesters and may inflate food prices. The noise will teach consumers to treat beef like fossil fuels.
Capital Calls: Nike, Stablecoins, Meme stocks 22 Mar 2023 Concise views on global finance: The Air Jordan maker grew quarterly revenue 14% despite inventory woes and China’s slow reopening; diverging demand for Circle and Tether cryptocurrencies raises questions about how investors are assessing risk; and GameStop’s shares surged 40%.
Bayer’s sunk boss leaves high water mark 21 Mar 2023 In one of his last acts before bowing to activist pressure, Werner Baumann is pledging the $60 bln drugs-to-seeds company will slash rice’s H2O needs by 25%. Leaving aside his legacy as the architect of the Monsanto deal, his ambition is worth emulating.
Syngenta jumbo IPO will sow seeds of doubt 14 Feb 2023 A Shanghai listing this year may value the pesticides and seeds maker at a chunky $66 bln. The group’s role in feeding a growing global population will please investors. But its reliance on toxic weedkillers that are losing favour in Europe poses a long-term threat.
Capital Calls: Adidas kitchen sink 10 Feb 2023 Concise views on global finance: Shares in the sportswear maker fell 11% amid forecasts of a high-single-digit decline in sales in 2023.
Bayer’s new CEO plants seed of future breakup 9 Feb 2023 Bowing to pressure from activist investor Jeff Ubben, the $66 bln drugs-to-seeds maker is replacing embattled boss Werner Baumann. Ditching the architect of the ill-advised Monsanto deal makes sense. Hiring pharma expert Bill Anderson suggests the crop division may be spun off.
Capital Calls: AI lessons, Robots, Streaming wars 8 Feb 2023 Concise views on global finance: Textbook rental company Chegg becomes an early victim of ChatGPT fears; a short supply of U.S. workers makes automation look even more appealing; Warner Bros Discovery flips the script on its deal logic and will keep HBO Max as a separate service.