The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
Dutch microchip printer maker ASML could be an analogue to takeover target ARM if two of tech’s biggest ideas merit the hype. Japan’s SoftBank has agreed to pay 24.3 billion pounds ($32 billion) for UK chip designer ARM on the basis that it will be a prime beneficiary of “the internet of things”, where appliances chat to one another over the worldwide web. That in turn should create masses of “big data” that companies can crunch to learn more about their customers. And that is where ASML, which beat analyst expectations of second-quarter earnings on July 20, comes in.
The City of London will remain a financial hub for longer than Britain remains a member of the European Union. Talks over how the United Kingdom leaves the EU could end with extra regulation, higher costs and more capital requirements for the financial sector. But it’s unlikely that clients – principally, asset managers and non-financial companies – will move much. They are the ones who drive the so-called “cluster effect”.
President Tayyip Erdogan is reasserting control with a vengeance. His crackdown after Turkey’s attempted military coup offers stability of sorts, which explains why domestic markets have pared some of their kneejerk losses. But it also engenders uncertainty, which investors loathe. Luring foreign money to the country will now be harder.
Danone’s $12.5 billion purchase of WhiteWave, a soy and almond milk maker based in the United States, is an expensive way of buying growth. The French dairy group can get away with it because expanding outside of Europe looks attractive, and debt comes cheap.