EU and U.S. bank stocks tumbled after Vladimir Putin invaded Ukraine. The conflict may blunt the benefits of higher interest rates and inflict losses on cross-border loans. In a worst-case scenario, Raiffeisen, UniCredit and SocGen could have to write off their Russian units.
Efforts by America and its allies to isolate Russia from the international financial system may hasten other countries’ efforts to bypass the greenback and eventually erode its global dominance. But there’s little point in having power that can’t be wielded in dire circumstances.
AB InBev’s Asian spinoff grew 2021 net profit by 76%, helped by premium pricing and a recovery in volume. The results bolster the case for its Bangkok-based rival to revive a beer IPO plan. The valuation, however, should be more sobering than Bud’s 36 times expected earnings.
Concise views on global finance: The mining giant needs more than a record $17 bln payout to close its valuation gap with rival BHP; Dairy giants’ aggressive marketing of infant milk formula in China is a risk for investors.
Emboldened by its success in Japan, normally discreet ValueAct is publicly chiding Seven & i’s structure and governance. The $44 bln retailer has dug in after previously fending off Dan Loeb. Winning over local fund managers would help a bubbling flow of pushy investing to erupt.