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☆ Maersk's woes signal slow-motion industry crash
▼ + stars: | 2023-11-03 | by ( ) www.reuters.com time to read: +2 min

Boss Vincent Clerc is not alone in trying to manage a crisis that is battering the container shipping world and which analysts at DNB Markets reckon could last up to 2030. He may also suspend the company's share buyback programme which has been put under review. Investors – spoilt by 16 consecutive quarters of earnings growth up to September – knocked 17% off the company’s share price following the news. The unit, which handles container shipping, reported a 56% drop in third-quarter sales due to a steep fall in freight rates. The World Trade Organization halved its growth forecast for global goods trade this year.

Persons: Evelyn Maersk, Fabian Bimmer, Moller, Boss Vincent Clerc, –, Clerc, Pamela Barbaglia, Aston Martin, Aimee Donnellan, Streisand Neto Organizations: REUTERS, Reuters, Shipping, Maersk, World Trade Organization, X, Macquarie, Pfizer, Thomson Locations: Hamburg, Germany

☆ Shell’s shrinking green pledge risks backfiring
▼ + stars: | 2023-11-02 | by ( Yawen Chen | ) www.reuters.com time to read: +4 min

REUTERS/Callaghan O’Hare Acquire Licensing RightsSINGAPORE, Nov 2 (Reuters Breakingviews) - Shell (SHEL.L) CEO Wael Sawan has upped the UK group’s quarterly buyback plan while cutting back on unprofitable low-carbon activities. His pivot back into fossil fuels has shielded the $217 billion company from the wind energy troubles now ensnaring European peer BP (BP.L) and renewables giant Orsted (ORSTED.CO). But the strategy can work only as long as volatile energy prices stay high. Shell’s $6.2 billion third-quarter adjusted net profit shrunk by a third from a year earlier but came in line with analysts’ expectations. So far this year, the total return for Shell’s shareholders has hit 17%, above rivals like BP and TotalEnergies (TTEF.PA).

Persons: Wael Sawan, Daniel Yergin, Callaghan O’Hare, Sawan, Shell, pare, Lisa Jucca, Streisand Neto Organizations: Shell, P Global, REUTERS, Rights, Reuters, BP, EV, Nature Energy, Exxon Mobil, Chevron, Reuters Graphics Reuters, Carbon Solutions, Renewables, Energy Solutions, Thomson Locations: Houston , Texas, U.S, Rights SINGAPORE

☆ Upstart steals march on Atos’s M&A battle
▼ + stars: | 2023-11-02 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Sarah Meyssonnier Acquire Licensing RightsLONDON, Nov 2 (Reuters Breakingviews) - Atos (ATOS.PA) may have found a helper, and potential acquirer. Smaller rival Onepoint said on Wednesday that it had bought a 9.9% stake in the ailing French IT company. Mustier is trying to implement a plan devised before he took over, which will see Atos split into two entities. Its 10% stake will have cost no more than 70 million euros. If a 900 million euro rights issue included in the split plan is confirmed, the total outlay for the stake will be about 160 million euros.

Persons: Atos, Sarah Meyssonnier, Onepoint, Jean, Pierre Mustier, Daniel Kretinsky, Mustier, Pierre Briançon, Aston Martin, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, French IT, Airbus, Pfizer, Thomson Locations: Paris, France, French, Czech, Orange, cybersecurity

☆ Piyush Gupta: Asia’s most disrupted digital banker
▼ + stars: | 2023-11-02 | by ( Anshuman Daga | ) www.reuters.com time to read: +4 min

Piyush Gupta, CEO of DBS Group (DBSM.SI) is often lauded as Asia’s top financier and has been tipped as a candidate to lead global rivals. Yet following repeated serious failures in its digital banking services, the Monetary Authority of Singapore has banned DBS from non-essential activities including M&A. It puts dividends at risk and will attract the eye of watchdogs overseas where the lender is busy expanding. On the back of record profits, Gupta earned $11.4 million last year, making him one of Asia’s highest remunerated bank CEOs. MAS will retain a multiplier of 1.8 times to DBS’ risk weighted assets for operational risk, an increase from a multiplier of 1.5 times MAS applied in February 2022.

Persons: Piyush Gupta, Ping, aren’t, OCBC’s, Peter Seah, Gupta, Breakingviews, he’s, Una Galani, Thomas Shum Organizations: Reuters, DBS Group, HK, HSBC, Monetary Authority of, DBS, MAS, Lakshmi, Bank, Monetary Authority of Singapore, Thomson Locations: SINGAPORE, Monetary Authority of Singapore, India, Taiwan, Singapore

☆ Sainsbury’s gain is private equity’s pain
▼ + stars: | 2023-11-02 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 2 (Reuters Breakingviews) - Red hot competition in the UK grocery market is favoring the largest players. Sainsbury’s CEO Simon Roberts reckons the 6.5 billion pound group has been taking market share from rivals including discounters Aldi and Lidl. That may not be good news for Sainsbury’s smaller peers like Morrisons and Asda, owned by Clayton, Dubilier & Rice and EG Group respectively. Both Sainsbury’s and Tesco have held their market shares relatively stable since 2021, when CD&R bought Wm Morrison. Sainsbury’s is currently valued at 5 times forward EBITDA, according to LSEG data.

Persons: J Sainsbury’s, Simon Roberts reckons, Wm Morrison, Aimee Donnellan, Aston Martin, Neil Unmack, Streisand Neto Organizations: Reuters, Aldi, Tesco, Clayton, Rice, EG, R, Asda, Morrisons, Pfizer, Thomson Locations: Britain’s, Asda, Dubilier

☆ CVC IPO efforts may not be third-time lucky
▼ + stars: | 2023-11-02 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsLONDON, Nov 2 (Reuters Breakingviews) - CVC Capital Partners’ ambitions to become a publicly traded diversified asset manager are on the back burner. Shares of rival managers have been pummelled as investors fret over the Gaza conflict, a weakening economy and whether buyout groups can continue to flourish in an era of higher interest rates. True, interest rates may fall. But geopolitical tensions are unlikely to die down, given unresolved issues in the Middle East and Ukraine. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Dado Ruvic, Pamela Barbaglia, Aston Martin, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, Partners, Financial Times, Moody’s, Pfizer, Thomson Locations: Amsterdam, Ukraine, Luxembourg, Gaza, East

☆ Japan’s rates tweak is careful and crafty: podcast
▼ + stars: | 2023-11-02 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

Breakingviews category · November 3, 2023 · 6:06 AM UTC“A billion here, a billion there”, Illinois Senator Everett Dirksen reputedly said of the U.S. budget deficit in the mid-1960s, “and pretty soon, you’re talking big money". The senator would need to do some swift recalibrations were he confronted with today’s American public finances. Last month, the Congressional Budget Office (CBO) reported that the federal budget deficit for the fiscal year ending September 30 had hit $1.7 trillion. Shortly afterwards, the International Monetary Fund forecast that the deficit will continue at the same level for at least the next five years. Meanwhile, government debt has tripled since the senator’s day to around 120% of GDP.

Persons: Everett Dirksen, you’re Organizations: Congressional, Office, International Monetary Fund Locations: Illinois

☆ Morgan Stanley’s new CEO inherits rich pickings
▼ + stars: | 2023-11-02 | by ( John Foley | ) www.reuters.com time to read: +7 min

A good place to start is outside Morgan Stanley’s home market. Morgan Stanley’s two last big acquisitions were chunky, at a combined $20 billion, but also filled niches. E*Trade, an online brokerage, brought millions of households and company employees that Morgan Stanley hadn’t previously served. Eaton Vance, a U.S. asset manager, peddles investment products that Morgan Stanley now funnels through sales teams in far-flung markets. CEO Jane Fraser shows no inclination to sell private banking, which for now sits within the group’s $756 billion global wealth management bucket.

Persons: Ted Pick’s, Morgan Stanley, Pick, James Gorman, Morgan, Gorman, Germany’s, Britain’s, Morgan Stanley’s, Morgan Stanley hadn’t, Eaton Vance, Smith Barney, watchdogs, Jane Fraser, It’s, Noel Quinn’s, Ping, Colm Kelleher, Ted Pick, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Credit Suisse, McKinsey ., Morgan, Reuters Graphics Reuters, Infrastructure, Citi, U.S, HSBC, HK, UBS, Thomson Locations: U.S, American, Asia, Pacific, Japan, India, China, French, Europe, Switzerland, HK, Swiss

☆ Larry Fink’s next M&A may go in surprise direction
▼ + stars: | 2023-11-01 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +8 min

Reuters GraphicsTIPPING THE SCALESThe shift to low-fee products helped BlackRock’s assets under management swell to more than $9 trillion at the end of September. BlackRock’s history with Blackstone means a reunion with Stephen Schwarzman’s $110 billion firm is a persistent Wall Street rumor. BlackRock’s funds operate under a single name, so uniting with Carlyle (CG.O) or Apollo Global Management (APO.N) would pose a branding challenge. Fink might covet MSCI (MSCI.N), the $38 billion firm which aggregates many of the benchmarks tracked by BlackRock’s ETFs. Given Fink’s long record of pulling off opportunistic and transformational deals, it would be foolish to bet against him springing one last surprise.

Persons: Larry Fink, Fink, Merrill, Rowe Price, Janus Henderson, Blackstone, Stephen Schwarzman’s, Carlyle, covet, MSCI, Michael Bloomberg, doesn’t, LSEG –, Peter Thal Larsen, Thomas Shum, Streisand Neto Organizations: CNBC, New York Stock Exchange, Reuters, BlackRock, Blackstone, Barclays Global Investors, Credit Suisse, UBS, nab, Graphics, Apollo Global Management, London Stock Exchange, Thomson Reuters, New, Bloomberg, Wall Street, New York Times, LSEG – Bloomberg, Thomson Locations: New York City, U.S, BlackRock, Boston, Swiss, New York, United States

☆ Orsted’s losing US bets need rethink of UK plans
▼ + stars: | 2023-11-01 | by ( Yawen Chen | ) www.reuters.com time to read: +4 min

Turbulent news has buffeted the wind sector of late, from faulty turbines at Siemens Energy (ENR1n.DE) to Orsted’s own surprise impairments in August. After that surprise – largely caused by suppliers’ issues – Orsted’s stock price is just a fifth of its 2021 peak of 1,350 Danish crowns. That suggests investors are neither counting on future growth from its U.S. portfolio nor sufficiently factoring in Orsted’s earnings from operating projects. That’s a far cry from the annual average increase of 14% from 2023 onwards implied by Orsted’s EBITDA target of up to 55 billion Danish crowns in 2030. Hornsea Three would require capital investments of 48.5 billion Danish crowns, according to Bernstein.

Persons: Mads Nipper, Nipper, Orsted, Bernstein, Orsted’s, Francesco Guerrera, Oliver Taslic Organizations: Reuters, Siemens Energy, Reuters Graphics Reuters, U.S ., Thomson Locations: SINGAPORE, United States, New Jersey, Danish, U.S . East Coast

☆ China rate scare reminds watchdogs of hidden risks
▼ + stars: | 2023-11-01 | by ( Chan Ka Sing | ) www.reuters.com time to read: +3 min

Overnight borrowing rates for some Chinese financial institutions spiked to 50% on Tuesday, according to official interbank data, far in excess of the average rate of roughly 3.6%. In 2012, a national audit confirmed that local governments had amassed up to 10 trillion yuan in debts. Those have since swelled to 92 trillion yuan, per Reuters. The latest liquidity squeeze is a reminder that short-term dangers will complicate any attempts at more drastic surgery on China’s financial system. CONTEXT NEWSOvernight borrowing costs for some Chinese financial institutions jumped to as high as 50% on Oct. 31.

Persons: Xi Jinping’s, Xi Jinping, Li Qiang, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Traders, People’s Bank of, Financial Work, Central Financial Work Conference, Xinhua News Agency, Thomson Locations: HONG KONG, People’s Bank of China, Beijing

☆ Pfizer can recover from its post-Covid fatigue
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

Pfizer reported plummeting demand for its Covid vaccines and treatments, with an overall revenue decline of over 40% compared to last year, and a $2.4 billion loss that included a $5.6 billion charge for Covid inventory write-offs. Pfizer now thinks 2023 revenue from shots and pills for the disease will total about $12.5 billion, over a 75% decrease from last year. Peers trade at around 5 times sales, and if Pfizer did too its enterprise value would be about $235 billion. Instead it’s almost 20% less, and the stock is worth one-fifth less than it was at the end of 2019. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Ivan Alvarado, It’s, Peers, it’s, What’s, Robert Cyran, John Foley, Aditya Sriwatsav Organizations: Pfizer, REUTERS, Reuters, Covid, X, Vodafone, Thomson Locations: Santiago , Chile, Spain

☆ Big government will drive the next market cycle
▼ + stars: | 2023-10-31 | by ( Francesco Guerrera | ) www.reuters.com time to read: +8 min

Growth picked up while quiescent inflation permitted interest rates to fall. Bereft of government support, central banks tried to stimulate their economies by pushing interest rates to new lows. That means interest rates will struggle to return to the ultra-low levels seen after 2008. The first takeaway is that higher debt levels, inflation and interest rates should be bad for bonds. Vincent Deluard of StoneX has proposed a division between intangible and tangible companies.

Persons: Kevin Lamarque, ” Ronald Reagan’s, Milton Friedman –, Britain’s Margaret Thatcher –, Reaganomics ”, Réka Juhász, Nathan J, Lane, Dani Rodrik, government’s, Vincent Deluard, StoneX, Lockheed Martin, Peter Thal Larsen, Oliver Taslic, Thomas Shum Organizations: Republicans, Capitol, REUTERS, Reuters, Bank, Asset, Monetary Fund, Treasury, Capital Economics, Reuters Graphics Reuters Graphics, Capital, Facebook, Meta, Lockheed, Micron Technology, U.S, Congress, Nasdaq, Energy, Exxon Mobil, Labour Party, Thomson Locations: Washington , U.S, “, Ukraine, Covid, Europe, United States, United Kingdom, Germany, Japan

☆ BOJ chooses slow path out of zero-rate limbo
▼ + stars: | 2023-10-31 | by ( Peter Thal Larsen | ) www.reuters.com time to read: +4 min

REUTERS/Susana Vera Acquire Licensing RightsHONG KONG, Oct 31 (Reuters Breakingviews) - The Bank of Japan (8301.T) is taking the long road out of zero-interest rate limbo. On the face of it, BOJ Governor Kazuo Ueda and his colleagues made few policy changes at their latest meeting. The short-term interest rate remains negative, while the official yield target for 10-year Japanese government bonds is unchanged at 0%. However, the real challenge for Ueda is when to end the era of negative short-term interest rates. The BOJ’s nine-member board maintained its target for short-term interest rates of -0.1%.

Persons: Kazuo Ueda, Susana Vera, Haruhiko Kuroda, Ueda, “, Antony Currie, Thomas Shum Organizations: Japan, International Monetary Fund, World Bank, REUTERS, Reuters, Bank of Japan, U.S, Thomson Locations: Marrakech, Morocco, HONG KONG, Japan

☆ Brookfield’s climate deal may run out of energy
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

The logo of Australian energy company Origin is pictured in Melbourne, Australia, July 3, 2016. REUTERS/Jason Reed/File Photo Acquire Licensing RightsMELBOURNE, Oct 31 (Reuters Breakingviews) - Australia’s top pension fund has aptly chosen Halloween to try to scare Brookfield Asset Management (BAM.TO) and co-bidder MidOcean Energy to dig deeper in their pursuit of Origin Energy (ORG.AX). AustralianSuper said on Tuesday it intends to vote its near-14% stake against the current A$18.7 billion ($12 billion) offer next month. On that score, the pension fund’s intervention may frighten the deal to death. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jason Reed, AustralianSuper, Antony Currie, Peter Thal Larsen, Thomas Shum Organizations: REUTERS, Rights, Reuters, Asset Management, MidOcean Energy, Origin Energy, X, Vodafone, Thomson Locations: Melbourne, Australia, –, Brookfield, MidOcean, Spain

☆ BYD’s Halloween bonanza spooks rivals
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

A BYD U8 is displayed during the Japan Mobility Show 2023 at Tokyo Big Sight in Tokyo, Japan October 25, 2023. REUTERS/Issei Kato Acquire Licensing RightsHONG KONG, Oct 31 (Reuters Breakingviews) - BYD (002594.SZ), (1211.HK) is delivering a fright to its rivals. The company founded by Wang Chuanfu is expanding its portfolio of premium brands, adding new models for its flashy Denza marque. For rivals trying to compete with the $95 billion group, though, that’s scant consolation. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Issei Kato, It’s, Wang Chuanfu, Bernstein, that’s, Katrina Hamlin, Peter Thal Larsen, Thomas Shum Organizations: Japan, REUTERS, Reuters, Overseas, Investors, BYD’s, X, Vodafone, Thomson Locations: Tokyo, Japan, HONG KONG, HK, China, People’s Republic, BYD’s Shenzhen, Hong Kong, Spain

☆ Uncle Sam provides shaky base for Caterpillar
▼ + stars: | 2023-10-31 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

The $500 billion U.S. infrastructure spending bill, passed in late 2021, helped lift the firm’s third-quarter profit 41% from a year ago. As with other sharp pullbacks after government-supported pandemic spending, Caterpillar will prove that counting on federal aid isn’t a viable business model. And the construction firms that order from Caterpillar appeared to step back, with the company's backlog of deliveries falling $2.6 billion in the third quarter. The U.S. CHIPS Act set aside $39 billion to help build semiconductor factories, leaving more money for construction firms and, in turn, Caterpillar. Umpleby may be benefitting from Uncle Sam now, but before long Caterpillar will have to fend for itself.

Persons: Michaela Rehle, James Umpleby, Joe Biden’s, EBITDA, Uncle Sam, Lauren Silva Laughlin, Sharon Lam Organizations: Construction Machinery, Machines, Mining Machines, Construction Vehicles, REUTERS, Rights, Reuters, Caterpillar, U.S . General Services Administration, Siemens, Cummins, LSEG, Thomson Locations: Munich, Germany, Texas, China, U.S

☆ Aussie tycoon doubles down as lithium spoiler
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +2 min

MELBOURNE, Oct 30 (Reuters Breakingviews) - Lithium M&A is becoming a dangerous sport Down Under. On Friday, Hancock Prospecting, owned by Australia’s richest person Gina Rinehart, revealed it had snapped up an 18.3% stake in Azure Minerals (AZS.AX). Unlike Albemarle, it has not tied its hands by declaring the Azure bid to be its best and final offer. But SQM boss Ricardo Ramos can switch to an off-market offer and try to buy other investors’ stakes first. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Hancock, Gina Rinehart, Chile’s, Rinehart, Albemarle, SQM, Ricardo Ramos, Antony Currie, Peter Thal Larsen, Thomas Shum Organizations: MELBOURNE, Reuters, Australia’s, Minerals, Australian, Liontown Resources, Canaccord, X, Thomson Locations: Western Australia, Liontown

U.S. President Joe Biden speaks about his administration's commitment to seizing the opportunities and managing the risks of Artificial Intelligence, in San Francisco, California, U.S., June 20, 2023. On Monday, U.S. President Joe Biden signed an executive order establishing regulatory guardrails for the technology that looks set to upend humanity. The announcement closes some of the rulemaking gap between the United States and its international counterparts. But now, because of the lack of clarity, some firms are considering ditching the United States. If important technologies do move outside of the United States, the country effectively loses its chance to steer development.

Persons: Joe Biden, Kevin Lamarque, Sam Altman, Andreessen Horowitz, Forrester, Ben Winck, Lauren Silva Laughlin, Sharon Lam Organizations: Artificial Intelligence, REUTERS, Reuters, European Union, Cyberspace Administration, OpenAI, Securities, Exchange Commission, Venture, country’s, Thomson Locations: San Francisco , California, U.S, United States, London

☆ Vodafone will struggle to get clean exit in Spain
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Toby Melville Acquire Licensing RightsLONDON, Oct 30 (Reuters Breakingviews) - Vodafone’s (VOD.L) boss Margherita Della Valle is cleaning up the sprawling 21 billion pound telecom group, but it’s a tough job. A potentially messy exit in Spain illustrates the point. Della Valle lacks an obvious partner in the country: local giant Telefónica (TEF.MC) is too big, while rivals Orange (ORAN.PA) and MásMóvil are merging with one another. As a result, Vodafone may have found itself a potentially problematic counterparty for the Spanish business, which Della Valle has put under strategic review. Investors might be reassured that Della Valle is making things happen, but a clean break in Spain looks increasingly unlikely.

Persons: Toby Melville, Margherita Della Valle, Della Valle, Eamonn O’Hare, Expansión, Zegona, Pamela Barbaglia, Liam Proud, Streisand Neto Organizations: Vodafone, REUTERS, Reuters, Orange, Zegona Communications, Virgin Media, Bloomberg, Deutsche Bank, ING, Reuters Graphics Reuters, X, Thomson Locations: London, Britain, Spain

☆ Israel war tests US appeal to global swing states
▼ + stars: | 2023-10-30 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

FOURNI, Greece, Oct 30 (Reuters Breakingviews) - Joe Biden has sought to portray the United States as a superpower that cares about the rule of law. What’s more, swing states – which back neither the United States nor China – have more power than they did during the old Cold War between the West and the Soviet Union. Such pressure may convince some countries that the United States is pursuing a principles-based foreign policy in the Gaza conflict. The Israeli war may last a long time and its aftermath may be tortuous. But it could also have an important impact on the United States’ influence with swing states and its struggle with China.

Persons: Joe Biden, Vladimir Putin’s, Xi Jinping’s, Barack Obama, Republic –, Biden, Queen Rania, Jordan, Israel, Jake Sullivan, Israel –, Tayyip Erdogan, Benjamin Netanyahu, Mustafa Kamal Kazi, Netanyahu, What’s, Jonathan Cohen, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Russian, U.S, Israel, United Nations General, Washington, UN Security Council, Security Council, Soviet Union, Members, United, Reuters Graphics Reuters, U.S . National Security, U.S ., West Bank, Thomson Locations: FOURNI, Greece, United States, Russia, China, Ukraine, Taiwan, Gaza, Israel, Republic, Saudi Arabia, Indonesia, U.S, Moscow, Soviet, India, Brazil, wean, Turkey, NATO, South Africa, Afghanistan, Iraq, Pakistani, Egypt, Israeli

☆ HSBC’s profit resilience may face sterner tests
▼ + stars: | 2023-10-30 | by ( Anshuman Daga | ) www.reuters.com time to read: +4 min

SINGAPORE, Oct 30 (Reuters Breakingviews) - HSBC’s (HSBA.L), (0005.HK) resilient bottom line may face some stiffer challenges. HSBC also flagged that the same exercise would produce another $400 million loss in the final three months of the year. The bank’s net interest margin slipped to 1.7% in the latest quarter, from 1.72% in the previous three months. HSBC shares trade at around 0.9 times the bank’s tangible book value at the end of September. The bank’s London-listed shares were up 0.9% at 606 pence by 0900 GMT on Oct. 30.

Persons: It’s, Noel Quinn’s, Quinn, undemanding, it’s, Peter Thal Larsen, Oliver Taslic Organizations: Reuters, HK, Chartered, HSBC, Thomson Locations: SINGAPORE, China, London

☆ McDonald’s menu stocks up on global variations
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +2 min

TORONTO, Oct 30 (Reuters Breakingviews) - McDonald’s (MCD.N) status as the world’s go-to meal means it’s competing with an uneven global economy as much as any rivals. The ubiquitous $190 billion fast-food purveyor on Monday touted a 9% year-over-year increase in worldwide same-store sales for the third quarter. In places like the U.S., that was helped by menu price increases. But the Big Mac seller also talked up the release of smaller, more affordable meals in markets facing worse economic fortunes, like China and Germany. In the latter, its McSmart menu of smaller meals helped drive the 10th quarter of double-digit sales growth.

Persons: Christopher Kempczinski, outpacing, Kempczinski, Sharon Lam, Jonathan Guilford, Aditya Sriwatsav Organizations: TORONTO, Reuters, Bureau of Labor Statistics, X, Vodafone, Thomson Locations: U.S, China, Germany, Europe, Spain

☆ Intel’s reverse bullwhip is strong
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +2 min

The $150 billion chip giant has weathered a post-Covid maelstrom as an initial work-from-home-driven boost to PC sales slammed into reverse, denting sales and the company’s chunky gross profit margin. Growth isn’t back, but results released on Thursday show the decline is slowing and a new division has promise. At least one pandemic bullwhip might be close to having run its course. Reuters GraphicsBetter yet, Intel’s foundry business - Gelsinger’s push to start making chips designed by others - is narrowing its losses while growing revenue and scaling up. Though many customers are signing up on the condition that Intel’s manufacturing tech reaches certain milestones, that unit is its future.

Persons: Pat Gelsinger, Jonathan Guilford, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, Intel, Taiwan Semiconductor Manufacturing, X, Thomson

☆ Investors reject Sanofi's cure to sickly valuation
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +3 min

LONDON, Oct 27 (Reuters Breakingviews) - Sanofi (SASY.PA) investors dislike CEO Paul Hudson’s prescription to reinvigorate the pharmaceutical group’s weak valuation. Analysts polled by LSEG expect the division to hit an EBIT of 1.6 billion euros this year. On listed rival Haleon’s 15.6 times multiple, that business could be worth 25 billion euros. The rest of the Sanofi business may generate EBIT of 11.4 billion euros. The problem is that investors don’t appear to want to take the harsh medicine that leads to a cure.

Persons: Paul Hudson’s, Ernst & Young, Sanofi, EBIT, Roche, Karen Kwok, Francesco Guerrera, Streisand Neto Organizations: Reuters, Sanofi, Ernst, LSEG, Novartis, Novo Nordisk, GSK, AstraZeneca, X, Unilever, Thomson

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