Orsted’s issues fan way beyond the United States 30 Aug 2023 Denmark’s $27 bln wind giant saw shares plunge over 20% after it said it may need to write down $2 bln of US projects. Yet Orsted’s supply chain and subsidy problems may also upend progress in the UK. And by recently implying all was well, management has lost credibility.
Vietnam’s Tesla charges itself up for a big fall 16 Aug 2023 VinFast shares leapt 270% on their Nasdaq debut following the group’s $27 bln merger. A cosy shareholding structure boosted the valuation to 16 times its US rival but tycoon Pham Nhat Vuong’s EV maker has teething problems. Outsiders will be exacting when he needs to raise money.
Capital Calls: Siemens 10 Aug 2023 Concise views on global finance: The rot at the 110 bln euro German industrial group is spreading from its misfiring energy unit to the core automation business.
Acquisitive CEO’s pay push belongs in scrap heap 7 Aug 2023 After beating back unhappy shareholders to complete a $7 bln junkyard deal, RB Global boss Ann Fandozzi sought to accelerate her equity grants. When the board said no, she apparently quit. It’s a welcome case of directors swinging the wrecking ball on runaway CEO rewards.
Sweaty Europe can kill two birds with one pump 7 Aug 2023 In the ‘era of global boiling’ more Europeans need air conditioners. But if they instead installed heat pumps, the bloc could cut carbon emissions and cool as well as warm citizens’ homes. All the more reason for governments to be more generous on subsidies than they have been.
Capital Calls: PIF, Siemens Energy 7 Aug 2023 Concise views on global finance: Saudi Arabia’s big sovereign wealth fund is getting bigger; the $13 bln German company unveiled a $2.4 bln charge due to persistent wind turbine problems.
Toyota tops up tank to fuel a hard drive 2 Aug 2023 Rising sales helped net income surge ahead by 75% in Koji Sato’s first quarter behind the wheel of the $230 bln Japanese carmaker, pushing the stock to an all-time high. To keep up the pace, though, he has to speed electrification and outpace competition from China and beyond.
How Europe can square the circle on green economy 1 Aug 2023 Shifting away from fossil fuels is an opportunity for the bloc, argues economy tsar Paolo Gentiloni in this Exchange podcast. But it will have to overcome challenges, such as US competition for investment and the EU’s own narrow set of financial tools.
Capital Calls: LVMH’s US dip, Rolls-Royce revival 26 Jul 2023 Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.
Capital Calls: European steel 21 Jul 2023 Concise views on global finance: Sweden’s $6 bln group SSAB misses profit forecasts as Europe’s demand tanks and steel prices shrink.
Britain upgrades to also-ran in EV battery race 19 Jul 2023 India’s Tata will spend $5 bln on a new gigafactory in England, helped by state subsidies. After Britishvolt’s demise, it suggests the UK can still lure green tech. But with more needed just to maintain its current auto output, Britain is still off the pace versus the EU and US.
VinFast’s $27 bln SPAC deal belongs in scrapyard 17 Jul 2023 Most of the acquiring blank-cheque company’s investors opted for their money back rather than own the Vietnamese EV maker. The buyer could try to trim the heady valuation. But with the Tesla wannabe’s low US sales and poor reviews, ditching the deal is better than patching it up.
Germany’s China policy caps pain for its companies 14 Jul 2023 Europe’s biggest economy has a new strategy to limit exposure to China and align more with Brussels and Washington. Yet a previous version of the plan was tougher. Big China-focused corporates like BASF and Volkswagen will be relieved they can de-risk at their own pace.
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.
Recycling fail exacerbates EU’s metals conundrum 7 Jul 2023 The bloc is likely to miss a target to double its use of recycled material by 2030. That’s especially short-sighted given the growing threat of Chinese export restrictions on critical metals. Improving Europe’s ability to mine junk would help shield key EU industries.
Beijing’s autos intervention is a necessary evil 7 Jul 2023 Regulators orchestrated a truce between Tesla and 15 Chinese rivals after a price war drove discounts on some models to as much as 20%. State interference can be costly, but this leaves room for healthy competition. And it suits EV makers more than their gas-guzzling rivals.
Thyssenkrupp hydrogen IPO calls for leap of faith 22 Jun 2023 The German conglomerate has resumed efforts to list electrolyser firm Nucera, hoping to raise $650 mln. Green hydrogen was once seen as the Swiss army knife of climate change. But market sentiment has soured and Thyssenkrupp’s alkaline technology faces competition from China.
ADNOC’s German chemical punt looks a stretch 20 Jun 2023 The Abu Dhabi energy giant is eying Covestro, valuing it at 14 bln euros including debt. The energy crisis has hit the German group’s valuation, and other UAE firms have snapped up European bargains elsewhere. But ADNOC would require synergies to make a deal stack up financially.
Shelved soda ash IPO is a UK wake-up call 15 Jun 2023 Turkish-owned WE Soda dropped plans for an $800 mln London listing after a cool reception from prospective shareholders. The firm blamed their cautiousness. The truth is that Britain’s attempts to fiddle with listing rules to revive the IPO market aren’t fooling shrewd investors.
Lessons from the original Industrial Revolution 9 Jun 2023 There’s much excitement that automation will unleash a new era of innovation. Yet in Britain, which led the first transformation of the industrial era, growth has stalled. Policymakers should study the conditions which sparked previous economic success, writes Edward Chancellor.