Capital Calls: Selling Salesforce 15 Aug 2023 Concise views on global finance: After successfully agitating for change at the $200 bln software developer, Jeff Smith’s Starboard and Dan Loeb’s Third Point are offloading their stakes. It’s probably a good time to pocket gains considering the challenges ahead for Big Tech.
Capital Calls: Exor/Philips 14 Aug 2023 Concise views on global finance: The Agnelli family is making a well-timed bet on the troubled 18 bln euro conglomerate that makes everything from toothbrushes to defibrillators.
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.
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.
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.
West is sleepwalking off healthcare cliff 17 Jul 2023 Europe is scrambling to end its reliance on Chinese raw materials for green energy and chips. But policymakers forget the region sources 80% of ingredients for top medicines in the East. Producing them at home may prevent a crisis but it risks exacerbating public debt piles.
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.
China plus one is best glue for India-US romance 23 Jun 2023 Prime Minister Modi’s largely successful state visit points to how India can help US firms like Tesla and Micron rejig supply chains. In sensitive areas like defence, trust is growing but remains in short supply. It keeps any hope of prising India away from Russia out of reach.
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.
Pirelli boss turns de-risking into opportunity 19 Jun 2023 Rome has limited the power of the $5 bln tyremaker’s Chinese shareholder, without forcing it to sell. Pirelli and Italy get to de-risk China ties without burning too many bridges. But the real winner is CEO Marco Tronchetti Provera, who has again found a way to come out on top.
Dutch chip export saga exposes EU shortcomings 13 Jun 2023 The Netherlands is limiting exports of high-end semiconductor gear to China, after a US push to curb Beijing’s AI and military prowess. While the EU will soon unveil a plan, it looks hard to strike the right power balance in the defense arena. Brussels needs a clearer role.
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.