Big Pharma will muscle in on obesity gold rush 28 Nov 2022 Novo Nordisk and Eli Lilly’s weight loss drugs are swelling their valuations, and give them a lead in a potentially $50 bln market. Yet rivals like Pfizer are not far behind, and others can snap up biotechs like Altimmune. An increasingly crowded sector may lead to lower returns.
Adidas’s Kanye West bet is still in credit 27 Oct 2022 The 18 bln euro sportswear maker severed ties with the musician over offensive comments. In this Viewsroom podcast, Breakingviews columnists discuss how the financial benefits to Adidas nevertheless outweighed the costs. That may spur other brands to pursue outspoken stars.
Adidas-Kanye split leaves investors in the money 25 Oct 2022 The $18 bln sportswear group cut ties with the musician, now called Ye, after he made offensive comments. Its sluggish response risks a boycott. But given Yeezy sneakers’ high profit margins in recent years, shareholders may already have won more than they stand to lose.
French protesters have a point on wages 20 Oct 2022 Inflation running at 10.9% is eroding European workers’ salaries. Companies benefitting from a power crisis, like 139 bln euro TotalEnergies, can afford pay hikes. For others, one-time bonuses are a better way to keep workers happy and cushion the downside of looming recession.
Time for Europe to tame its energy cravings 19 Oct 2022 After paying through the nose to fill its gas storage reserves to 92%, the bloc is seeking to secure more affordable fuel. Measures like curbing price volatility, club purchases or flexible caps will be no panacea. While supply is tight, curbing demand is the key.
Florida has a flood problem and insurance problem 4 Oct 2022 Hurricane Ian could cause insured losses of over $50 billion, making it one of the costliest storms on record. But over 80% of the state’s homes lack flood insurance, and because premiums are skyrocketing, more residents are hitting up the state’s insurance program.
Vodafone’s UK merger plan has cost-of-living catch 3 Oct 2022 The $32 bln telecoms group and Hong Kong’s CK Hutchison are in talks to merge their British operations. A deal could unlock cost savings, but shareholders so far seem unenthused. It may be harder for watchdogs to accept lower competition while customers reel from higher prices.
Silicon Valley’s post-Covid brain drain 27 Sep 2022 Before the pandemic, 75% of venture capital was invested in California, New York and Massachusetts. In this Exchange podcast, AOL co-founder Steve Case explains that a hybrid working revolution is reversing that trend and encouraging permanent investment away from the coasts.
Italy’s right-wing winners inherit poison chalice 26 Sep 2022 Nationalist Giorgia Meloni, EU-sceptic Matteo Salvini and convicted former PM Silvio Berlusconi scored an election victory. Despite campaign unity, they disagree on sanctions and spending. The rivalries risk undermining the high-debt nation’s ability to tackle its energy crisis.
Italy’s first female PM is red flag for workwomen 16 Sep 2022 Ultra-right politician Giorgia Meloni is likely to become the next premier. She opposes boardroom quotas that have lifted female representation from less than 7% to 41% in a decade. Scrapping them would be a setback for a country struggling with stubbornly low female employment.
Italy’s next government has tricky to-do list 13 Sep 2022 A rightist coalition is poised to win Italian general elections this month. In this week’s Exchange podcast Muzinich’s Fabrizio Pagani discusses the next executive’s immediate economic challenges. These include coping with an energy crisis, high public debt and a bailed-out bank.
Putin’s gas ploy worsens Russia’s economic plight 9 Sep 2022 The EU paid 89 bln euros for Russian oil and gas in the last six months. That helps President Vladimir Putin afford the closure of a key pipeline. But the move will speed Europe’s search for other energy sources. If the EU holds firm on sanctions, Russia’s recession will deepen.
EU has ways to learn to live with less gas 6 Sep 2022 The closure of a key Russian pipeline leaves Europe facing a 20% shortfall in fuel supply. Measures to cut demand like lower temperatures in homes and incentives for companies to use less energy may soften the blow. More gas-dependent nations like Italy must now work harder.
Trussonomics may freak out the markets 5 Sep 2022 If the UK’s new prime minister was only planning big energy subsidies, investors might not worry too much. But Liz Truss is also planning tax cuts – and may pick fights with both the Bank of England and European Union. If so, the pound could be clobbered, says Hugo Dixon.
Private jet crackdown is idea that could fly 25 Aug 2022 The French government is mulling clamping down on corporate flights, on both environmental and societal grounds. Whether it imposes punitive taxes or strict restrictions, the plan has few obvious downsides. It would be even more effective if other European countries hop aboard.
Cinemas’ debt horror show compels a director’s cut 25 Aug 2022 Regal owner Cineworld is prepping to file for bankruptcy. Punters are slowly returning to theatres, but studios are taking their time to release “Top Gun”-style blockbusters. With less income and rising wage costs there need to be fewer screens, and fewer operators.
Gaming’s big comedown will be spread unevenly 12 Aug 2022 The sector has changed radically since 2008. It weathered Covid with ease, but it’s hard to say how cash-strapped gamers will fare in another recession. Reliable franchises like EA’s “FIFA” could end up more valuable, while the demise of buzzier upstarts may create M&A openings.
Women’s soccer kicks off virtuous financial circle 1 Aug 2022 England’s “Lionesses” won the European Championship in front of 87,000 fans with millions watching at home. That suggests public interest not far off the men’s game. If soccer follows tennis in closing the gender revenue gap, there will be big bucks for players – and for clubs.
Global food crisis demands urgent Western response 25 Jul 2022 Russia’s invasion of Ukraine has pushed up food and energy costs around the globe. The most urgent problems are in poorer countries, write William Rhodes and Stuart Mackintosh. Rich nations offered insufficient help for Covid-19. International bodies can do better this time.
Climate fight can take heart from an old oil maxim 20 Jul 2022 Sages say high crude prices are their own cure. Similarly, hot weather now may avoid worse warming in future, if baking conditions at home make the West honour its pledge to finance developing states’ climate change struggle. That might get stalled net-zero plans back on track.