Ed Cropley
ReutersBreakingviews
Johannesburg, GP, South Africa
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Past articles by Ed:
Boeing’s chief pilot has risky path out of dive – Breakingviews
A blizzard of bad news has pushed the $75 bln U.S. plane-maker’s market value below rival Airbus for the first time. Customers are fuming about delayed orders. Assuming it can actually deliver jets, the risk is CEO Dave Calhoun keeping buyers sweet with ever bigger discounts. → Read More
St-Gobain activist hits right nails at wrong time – Breakingviews
Bluebell wants the 27 bln euro French construction group to rebuild by ditching its chairman and less profitable units. The upstart investor’s ideas have firm foundations. Its only problem is new CEO Benoit Bazin is already on the case, and the results are starting to show. → Read More
Vodafone’s deal zeal is a risk factor – Breakingviews
The telecoms group may combine its UK business with smaller rival Three, owned by Hong Kong’s CK Hutchison. Its 39 bln pound debt pile makes a joint venture more likely than an outright purchase. CEO Nick Read’s eagerness to hook up means he may not secure the best deal possible. → Read More
Zimbabwe borrows from bank of bad ideas, again – Breakingviews
With inflation at 96%, Harare plans to stop further currency slumps by a ban on bank lending. That stymies a sly trade where insiders play the spread between official and black-market FX rates. But as with prior moves it’s a blunt tool that erodes rather than builds confidence. → Read More
Windmill makers’ vicious cost cycle has an ending – Breakingviews
Denmark’s Vestas and rival Siemens Gamesa have failed to turn booming demand for wind farms into higher earnings. Increased prices to offset soaring raw material costs will take several years to kick in. But now wind power is cheaper than fossil fuels, price pressures are easing. → Read More
Bitcoin’s African outpost raises several red flags – Breakingviews
War-torn Central African Republic is following El Salvador in adopting the crypto unit as legal tender. The surprise of the region’s central bank and Bangui’s use of sanctioned Russian mercenaries are warning signs. Bitcoin’s quest for mainstream acceptance just got harder. → Read More
Africa is imperfect solution to Europe’s gas woes
The continent’s vast reserves and growing liquefied gas supplies can cut some of the bloc’s energy dependence on Russia. Yet lack of infrastructure, domestic needs and rigid contracts limit Africa’s ability to boost exports quickly. Political instability is a further headache. → Read More
China takes new tack on emerging market debt – Breakingviews
Beijing has agreed to work with the Paris Club of official creditors to clear up Zambia’s $17.3 bln debt mess. That’s a major shift from the bilateral approach it usually adopts. An even bigger sign of progress would be accepting a haircut on the $5.8 bln that China is owed. → Read More
Rwanda’s economic refit gets net-positive free ads – Breakingviews
Britain and Denmark want to outsource asylum processing to the East African nation infamous for its 1994 genocide. Regardless of their motives, it chimes with leader Paul Kagame’s plan to build an offshore services hub. Handling refugees looks mercenary but supports his goal. → Read More
Italian motorway menu serves the Benettons well – Breakingviews
The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal. → Read More
Stranded jets are least of plane lessors’ problems – Breakingviews
Big fleet-owners like AerCap may have to write off $10 bln of planes trapped due to Russian sanctions. Ultimately, though, insurers should cover their losses. A bigger brake on the aircraft-leasing industry’s rapid ascent is the rising cost of debt from jittery lenders. → Read More
Martin Sorrell’s latest S4 pitch falls flat – Breakingviews
The former WPP ad man says a last-minute delay to his digital media upstart’s accounts are not a cause for concern. A 40% share price drop suggests investors disagree. S4’s breakneck growth targets and quirky corporate governance leave it exposed to undershooting positive spin. → Read More
Ericsson’s governance mess stretches beyond Iraq – Breakingviews
Investors rebuked CEO Börje Ekholm for not disclosing possible payments to Islamic State by stripping him of legal protections. The telecoms-kit maker kept voting details quiet, and its dual-class share structure means Ekholm looks safe. Investors have more reason to steer clear. → Read More
Bayer has 29 bln reasons to say bye-bye to CEO – Breakingviews
Four years on, the 61 bln euro group’s Monsanto purchase has left it with cancer litigation and a clunky structure. Its current worth may be 32% less than the value of its bits, arguing for a breakup. That’s hard while boss Werner Baumann, the deal’s architect, is in place. → Read More
Energy market bailout is cheaper of two evils – Breakingviews
Europe’s gas producers and utilities want state support to offset the wild swings in commodity prices since Russia invaded Ukraine. Given this could aid big oil companies like Shell, that sounds wrong. But a market breakdown would be worse, and states can levy windfall taxes. → Read More
Russian wheat squeeze sows seeds of global unrest – Breakingviews
Prices of the grain soared to record highs following Moscow’s invasion of Ukraine, a major producer. A previous spike in 2007 led to riots in Africa and Asia while pushing up subsidy costs. This time major importers like Egypt already have low reserves, spelling greater trouble. → Read More
Spanish telco M&A piles pressure on Vodafone – Breakingviews
Orange and KKR-owned MasMovil are in talks over a 19.6 bln euro merger in Spain. The bold move will test EU competition watchdogs’ opposition to consolidation. It also looks like a missed opportunity for the UK telco’s CEO Nick Read. He now needs a deal in Britain or Italy. → Read More
Barcelona’s 5G hype is recipe for hyperventilation – Breakingviews
Telecoms bosses converged on the Spanish city this week after a two-year hiatus. From robot dogs to holographic compères, the tech-fest painted a utopian view of a wired future. For CEOs like Vodafone’s Nick Read, the difficulty is making it happen while also making money. → Read More
Russia’s wheat clout can hit world where it hurts – Breakingviews
The grain’s price hit a record high after the invasion of Ukraine, source of 8% of world exports. A long conflict in a country called the “breadbasket of Europe” would mean global shortfalls. President Vladimir Putin would cause even more disruptions if he curbed Russian exports. → Read More
European telco merger hopes disregard past signals – Breakingviews
EU watchdogs have previously blocked consolidation between mobile operators. Now executives like Vodafone boss Nick Read, urged on by activist investors and buyout firms such as KKR, are once again pushing for deals. But the case for protecting competition remains compelling. → Read More