FT : Why Germany’s Taurus is Europe’s most-wanted long-range missile

Why Germany’s Taurus is Europe’s most-wanted long-range missile
The system Kyiv has requested is technologically superior to its Franco-British peers but its production lines are inactive

Britain, France and the US have supplied Ukraine’s armed forces with powerful longer-range missiles to help fight Russia’s invasion. But the Ukrainian army really wants the German-made Taurus systems.

German chancellor Olaf Scholz is refusing, saying his country’s troops would have to be sent to Ukraine to programme the missiles, dragging it further into the conflict with Russia. Berlin is also concerned over escalation if Kyiv strikes targets in Russia or the bridge linking mainland Russia to Crimea.

The debate has highlighted Taurus’s capabilities compared with the Anglo-French Storm Shadow and Scalp-EG systems. 

How superior is the Taurus missile to its French and British peers?
The Taurus cruise missiles, fired by fighter jets, are roughly the same length and weight as the UK’s Storm Shadow and France’s Scalp-EG.

What really sets the German missile apart is its Mephisto intelligent warhead system. Unlike traditional warheads which detonate after a set time, Mephisto can penetrate several layers of material and its so-called fuze that activates the warhead, can be programmed to go off in the optimal spot, ensuring maximum damage to structures such as bridges and bunkers.


In a call recently leaked by the Kremlin, German officers discussed the Crimea bridge as a potential target, with one noting that unlike the Storm Shadow/Scalp-EG missiles, the Tauruses would be able to “penetrate” its structure.

The Taurus has a “higher ‘kill probability’ because its superior fuze system allows its warhead to destroy complex structures, such as bridges, with greater likelihood compared with Storm Shadow/Scalp-EG”, said Fabian Hoffmann, a missile technology doctoral research fellow at the University of Oslo.

The missile is also powered by a turbofan engine, which blows in more air, giving it a longer range than the turbojet engine-powered Storm Shadow/Scalp-EG missiles. Hoffman estimates that Taurus could strike targets up to 250km farther away than the UK and French competitors. 

Its stealth technology and design means it can fly as a low as 50 metres, evading detection from most radars. 

However, Christian Mölling, defence expert at the think-tank German Society for Foreign Policy, said the debate in Germany has focused less on the missile’s “military impact” and more on Russia’s potential reaction to Berlin sending such powerful weapons to Ukraine.

Who makes the Tauruses?
The Taurus system is built by a joint venture between the German arm of Europe’s largest missile maker, MBDA, and Sweden’s Saab. Bavarian-based TDW, a subsidiary of MBDA Deutschland, makes the Mephisto warhead. No missiles are in production. The Spanish, South Korean and German militaries have stocks of Taurus missiles but none have been used in war.

Production lines are idle: they were last active in 2019, following an order by the South Korean government. The plants in the Bavarian town of Schrobenhausen are only carrying out refurbishments of sold missiles. Analysts estimate that each missile costs about €1.5mn, depending on the size of the order.

Storm Shadow/Scalp-EG is manufactured by MBDA in the UK and in France. Last year saw the first use of the cruise missiles in Ukraine — gifted by UK and France — released from Ukraine’s Su-24 ground-attack aircraft.

There is one active Scalp-EG production line in France delivering an order from Greece. Athens procured some additional missiles as part of a wider weapons package for Dassault Aviation’s Rafale jets. 

Neither the UK nor France have disclosed how many missiles they have sent to Ukraine. However, prior to sending Storm Shadows to Kyiv, Britain had a stockpile of up to 850, Hoffmann estimated. France had stockpiles of up to 460 Scalp-EG missiles before deliveries to Ukraine.

The US started supplying Ukraine with the Army Tactical Missile System, ballistic missiles known as ATACMS, late last year. Built by Lockheed Martin, ATACMS are fired from launchers on the ground and have a maximum range of 300km — although the ones sent to Kyiv are the older missiles with a range of 165km.

How long would it take to restart production?
Joachim Knopf, managing director of Taurus Systems, in January said that Taurus production could be resumed “at short notice” as long as an order was placed.

Nevertheless, analysts estimate that a new Taurus missile would take about two years to produce.

Increasing or restarting production of a cruise missile “can’t be done overnight, with the supply chain also having to increase output or restart production of components, all of which takes time”, said Douglas Barrie, senior fellow for military aerospace at the International Institute for Strategic Studies.

Any missiles sent to Ukraine would likely come from the Bundeswehr’s stock of roughly 600 Taurus missiles — although only half of them are believed to be operational, according to Hoffmann. 

Beyond the debate over supplying Ukraine, Europe needed to consider its own arsenal, said Hoffman. “[Missile systems] are key capabilities in modern warfare — we don’t have enough of them in our arsenals and we currently don’t produce them,” he said.

Meanwhile, Russia has increased production of its long-range missiles, from about 40 a month in 2022 to about 100 a month by the end of last year, according to the Royal United Services Institute.

How easy is it to train personnel to operate the Taurus?
The leaked call between German officers revealed that Ukrainian troops could be trained to use the missile systems despite Scholz’s previous claims that Germans would need to operate them. The officers discussed various training scenarios, which could be done in less than 12 weeks.

Mölling said the real “bottleneck” would be the technical integration of any missile system into Ukraine’s existing aircraft. But he added that “it has been done before, it happened with the Storm Shadow and Scalp”.  

FT : What is causing the growing divide in the US property market?

What is causing the growing divide in the US property market?
While most homebuyers are still hobbled by high mortgage rates, sales of luxury homes are surging

In late February, Edmond Franco and Jeremy Gregg bought a new multimillion-dollar condo apartment in Midtown Manhattan, going over their original budget by more than 50 per cent. 

“Yes, it’s much more than we planned to spend,” says Franco, who works as a financial adviser, but he considers the home to be one “we will never find again” — a good long-term investment.

“My instinct is that this is an inflection point for property in New York: US economic growth is very good; unemployment is low; the stock market is up,” he says. “The city feels as vital as it has ever been: we wanted to be ahead of the curve; we didn’t want to get into a bidding war.” 

Three thousand miles away in San Francisco, a home purchase has never felt further away for Michelle and her husband. The couple, who work in tech, were both laid off last summer. Michelle’s husband is still unemployed and Michelle worries that her new job is not secure. 

When their lease expires in June, they plan to cut their rent by a third by moving from their three-bedroom flat in Oakland, on the east side of San Francisco Bay, to a smaller home.

“There is no way we will be extending ourselves with a purchase at the moment. Mortgage rates are too high and so are prices, and with our sector as it is, there is no safety net. It’s hard not to be pessimistic,” says Michelle, who declined to give her surname.  

In the US right now, it’s a tale of two housing markets. 

For the majority, grappling with high mortgage rates, the market is stuck in a rut. In January, the annualised rate of second-hand home sales hit 4mn, 38 per cent lower than in January 2022, according to the National Association of Realtors.

But at the top end of the market, sales are surging: in January, sales of second-hand homes above $1mn were 27 per cent higher than a year earlier, with many buyers benefiting from the 34 per cent rise in the S&P 500 stock market index over the past year.

“This time last year almost everyone was predicting a recession and buyers were more cautious, [saying] ‘Maybe I don’t need that second home’”, reflects Chen Zhao, head of economic research at Redfin, a US property portal. “Now with this sense [the economy] has achieved a soft landing, there’s been a sentiment bounce in the luxury market.”


Nina Bhela and her husband have certainly felt it. The couple, who live near San Francisco, were ready to buy a second home early last year, but it was not until December that they completed a purchase, buying an apartment in the Residences on Yerba Buena Island, just over the Bay Bridge. 

“Last year, mortgage rates were really climbing, interest rates were going up, there were these fears about the economy,” she says. Now the atmosphere has changed. “People are travelling, the restaurants are full. I mix with a lot of very affluent individuals and they are feeling comfortable.” The way she sees it, she can always refinance when mortgage rates fall, “but there won’t be another chance to get a unit like this.”

“Recent stock market gains have enhanced the purchasing power of higher-end consumers,” says Jonathan Miller, professor of residential real estate at Columbia University in New York. “They are now confident of future interest cuts and are buying to get ahead of the price gains they anticipate these will cause,” he adds. 

“In the wider market, by contrast, higher mortgages are holding back sales because many people still can’t afford a purchase.” 


Outside of the US luxury home market, buyers face a litany of obstacles. Uppermost among them are stubbornly high mortgage costs.

On Monday, the average 30-year fixed rate was 6.87 per cent, according to the website Mortgage News Daily, down from the 8.03 per cent peak in October, but a world away from the low of 2.75 per cent in January 2021. 

The result is that many homeowners feel trapped where they are. “Even if you really want to move, it’s hard to swap a 3 per cent rate for one at 7 per cent,” says Joel Kahn, deputy chief economist at the Mortgage Bankers Association.

For many families, running a home has become a lot more expensive. In 2019, a family on the median income typically spent nearly 50 per cent of their income on mortgage and childcare costs, according to property portal Zillow. In January, that had climbed to 66 per cent.

At the end of last year, Scott, who works in tech and is the sole earner for a family of four, bought a home in Orinda, California, in need of renovation. Including mortgage payments, mortgage insurance and property taxes, he pays $3,500 per month more today than what he spent on rent at the family’s last home. Together with his living costs, this eats up all his salary; renovations have to wait for each time the stock options he has in the company he works for vest. On top of that, his insurer has just told him it is pulling out of the local area, which is at risk of wildfire. 

“It’s challenging: I’ve got a high mortgage rate and a big property tax that I didn’t pay before [as a renter],” says Scott, who declined to give his surname. 

Widespread lay-offs in his sector, which have increased the pressure at work, add to his concerns about the family’s long-term financial security — even after his wife, who is taking a break from her job as a teacher following the birth of the couple’s second child, returns to work.

“Today, working in tech has gone from: ‘high income, high creativity, take risks’ to a bit more ‘don’t screw up and you better be a top performer’”, he says. “I used to be a teacher, too; even back then on a much lower salary, I never had to live hand to mouth like this.”

Many are opting to sit out and wait. Kristin Carlson is planning her first home purchase near Boise, Idaho, where she currently rents. 

She feels more secure in her digital marketing job than she felt a year ago; and, she says, with the worst of inflation over and the prospect of interest rate cuts stimulating her sector, she is more confident about affording mortgage payments in the coming months. 

But she is waiting for the Federal Reserve to cut interest rates, so that her mortgage will be cheaper.

“I could make it work now, but I wouldn’t be able to travel or go out for nice food as much. Ideally, I’d love to see my rate at sub-5 per cent. It will take patience and maybe a little bit of gambling. But I’m holding out,” she says. 

When it meets next week, the Fed is expected to keep rates unchanged at between 5.25 and 5.5 per cent, and detail how many cuts it is planning this year. Most analysts predict the central bank will make its first rate cut in either June or July.

Jared Halpern, of Douglas Elliman in New York, has been telling customers that if they take out a mortgage now, they can refinance when rates are lower. “[But] buyers simply can’t afford to carry a mortgage right now, or they can but are waiting for rates to drop,” he says.


For many, it’s not just the mortgage rate that needs to come down. Since January 2020, the price of a single-family home in the US has increased by 46 per cent, according to the S&P CoreLogic Case-Shiller index. With gains of 5.5 per cent in the year to December. According to Zillow, the average home price in the US is now nearly $348,000.

In the luxury market, where recent stock market gains have helped drive a surge in cash purchases, high mortgage rates are a less pressing concern. 

In the last three months of 2023, the number of homes in Manhattan bought in cash increased by 18 per cent compared with a year earlier, according to Douglas Elliman. They now account for 68 per cent of all sales — a new record.

In December, Jennifer Barckley and Rahul Bhaskar bought their first home together, a condo apartment in Manhattan’s South Harlem neighbourhood. They had been looking in earnest since 2021; in that time, mortgage rates rose significantly, increasing the monthly payments they will have to make. But a far greater financial impact on their purchase has came from gains over the years in US stocks, where they had invested most of the money for their down payment.

Their requirements for a home were strict: they wanted the conveniences of a new-build condo that retained some of the qualities — such as high ceilings, a small number of units in the building and a warm community feel — that they had so enjoyed about their Upper West Side rental. But with well-paying jobs and a significant savings pot accumulated over many years, they could afford to take their time.

“This was a long-term investment, we wanted to find something that was right, it wasn’t about chasing mortgage rates,” says Barckley.

Franco and Gregg are watching mortgage rates closely, but not because they worry about meeting their monthly payments. 

They will finance their new home purchase by selling the Greenwich Village co-op where they live now, on the market for $2.95mn, selling some financial investments, and by taking out a mortgage for a third of the home’s value.

“With interest rates high, we might not get as much on the sale as we would,” says Franco.

But since he is buying a significantly more expensive home, purchasing now — before interest cuts by the Fed stimulate Manhattan’s top-end market further and prices climb — feels like good timing, he says.

“We may be a little ahead of the curve, because interest rates haven’t come down yet, but we think cuts will come soon. Another offer [for the home we bought] came in the following day to ours: we felt if we wanted this apartment, we had to act now,” he adds.

Still, for many super-rich buyers, current high mortgage rates hardly register. 

Last year, Alan Jay Wildstein bought a home in Bentley Residences Miami, a new waterside development in the city, which will be completed in 2027. It is the latest of four homes he owns, all of which he bought with cash.

Speaking to me via video call from one of those in the Porsche Design Tower Miami, designed by the same architect as his new Bentley home, he pans his camera out from his desk to show me five supercars parked in formation, part of a collection so large he can’t tell me the number of vehicles it contains. I catch sight of a McLaren Elva, of which only 149 were made, he tells me. “That’s not my most expensive car.” 

“Interest rate climbs affect a lot of things in the world, but my home purchase is not one of them,” he says. 

>>> US After Hours Summary: ADBE -10.2%, PD -10.1%, SMAR -9%, ULTA -5% lower on

After Hours Summary: ADBE -10.2%, PD -10.1%, SMAR -9%, ULTA -5% lower on earnings; MDGL +23.6% as it confirms FDA approval of Rezdiffra; GERN +90.8% after it resumes trading

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CDLX +36.2%, GETY +9%, DESP +8.2%, WW +4.3%, PHR +3.6%, AGRO +3.1%, ALLO +0.8%

Companies trading higher in after hours in reaction to news: GERN +90.8% (resumes trading after being halted on Thurs; FDA Advisory Committee voted in favor of the clinical benefit/risk profile of Imetelstat), MDGL +23.6% (confirms FDA approval of Rezdiffra), AQST +14.3% (data from pivotal study for Anaphylm), LAW +3.6% (authorizes new $20 mln share repurchase program), ISRG +2.8% (FDA provides 510(k) clearance for da Vinci 5), TRIN +1.6% (increases dividend), BGNE +1.1% (FDA approves TEVIMBRA), UDR +0.9% (increases dividend), ALLO +0.8% (files $500 mln mixed shelf securities offering), WPC +0.7% (increases dividend), ONTF +0.5% (authorizes new $25 mln share repurchase program)


After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: BW -12.1% (also evaluating strategic alternatives for non-strategic assets to increase liquidity), ADBE -10.2% (also authorizes new $25 bln share repurchase program), PD -10.1%, SMAR -9%, BLNK -7%, MNTK -6.3%, ULTA -5% (also forming JV with Axo to launch Ulta in Mexico; approves $2 bln for repurchases), ZUMZ -4.8%, EVCM -3.2%, RDUS -2.6%, SMR -0.1%

Companies trading lower in after hours in reaction to news: HRTG -4.3% (files $100 mln mixed shelf securities offering), NUVB -3.2% (first patient has been dosed in a Phase 1/2 study of NUV-1511), PANL -2.4% (files $100 mln mixed shelf securities offering), OPCH -2% (discloses cybersecurity incident at Change Healthcare, which OPCH uses), MBLY -1.6% (files mixed shelf securities offering), GPMT -1.3% (decreases dividend), ACIU -0.9% (files $350 mln mixed shelf securities offering), WPM -0.7% (increases dividend), TOL -0.2% (files mixed shelf securities offering), CL -0.2% (increases dividend), EIG -0.1% (names new board chair), AJG -0.1% (may sell up to 3 mln shares in ATM offerings), UAL -0.1% (UAL close to securing at least 36 Airbus jets as it seeks to replace delayed Max 10 orders, according to Bloomberg), BA -0.1% (UAL close to securing at least 36 Airbus jets as it seeks to replace delayed Max 10 orders, according to Bloomberg)

>>> Nucor guides Q1 EPS below consensus as steel products segment earnings to de

Nucor guides Q1 EPS below consensus as steel products segment earnings to decline on lower average selling prices and volumes
  • Co issues downside guidance for Q1 (Mar), sees EPS of $3.55-3.65 vs. $3.74 FactSet Consensus.
    • Co noted that the steel mills segment's earnings are expected to increase in the first quarter of 2024 due to higher average selling prices and volumes, particularly at sheet mills.
    • Earnings in the steel products segment are expected to decrease in the first quarter of 2024 due to lower average selling prices and decreased volumes.
    • Co expects earnings in the raw materials segment in the first quarter of 2024 to be comparable to the fourth quarter of 2023 as improved performance of DRI facilities is offset by lower margins at scrap processing operations.

>>> US Close Dow -0.35% S&P -0.29% Nasdaq -0.30% Russell -1.96%

Closing Stock Market Summary
It was a downbeat day for the stock market. The S&P 500 (-0.3%), Nasdaq Composite (-0.3%), and Dow Jones Industrial Average (-0.4%) closed off their session lows thanks to move higher in the last 30 minutes of trading, albeit still logging broad based declines. The Russell 2000 underperformed the broader market, sinking 2.0%.

The main focus was price action in the Treasury market, which pushed yields toward their highs from February. The 2-yr note yield rose seven basis points to 4.69% and the 10-yr note yield settled 11 basis points higher at 4.30%. This was largely in response to the February Producer Price Index report, which was hotter than expected.

Other data this morning also contributed to the selling, including a February retail sales report that was a bit weaker than expected but still up nicely versus the prior month, and some initial and continuing jobless claims data that reflected ongoing strength in the labor market.

Downside moves were relatively modest despite a growing sense among some participants that stocks are due for a pullback. The Invesco S&P 500 declined 0.9% and only one of the 11 S&P 500 sectors fell more than 0.8%.

The rate-sensitive real estate sector (-1.6%) was the worst performer followed by the utilities (-0.8%) sector. Meanwhile, only two sectors finished higher today. The energy sector jumped 1.1%, benefitting from positive movement in WTI crude oil futures ($81.23/bbl, +1.49, +1.9%) and natural gas futures ($1.74/mmbtu, +0.08, +4.8%).

Gains in some heavily-weighted names provided a measure of support to the broader market, but it wasn't enough to offset the broad declines elsewhere. Apple (AAPL 173.00, +1.87, +1.1%), Microsoft (MSFT 425.22, +10.12, +2.4%), Amazon.com (AMZN 178.75, +2.19, +1.2%), and Alphabet (GOOG 144.34, +3.57, +2.5%) were influential winners in that respect.
  • S&P 500: +8.0% YTD
  • Nasdaq Composite: +7.4% YTD
  • S&P Midcap 400: +5.2% YTD
  • Dow Jones Industrial Average: +3.2% YTD
  • Russell 2000: +0.2% YTD

Reviewing today's economic data:
  • February PPI 0.6% (consensus 0.3%); Prior 0.3%; February Core PPI 0.3% (consensus 0.2%); Prior 0.5%
    • The key takeaway from the report is that goods inflation drove the increase; moreover, the PPI uptick will not assuage concerns about PCE inflation remaining sticky, which in turn means the Fed might embrace being stickier for longer with its current fed funds rate.
  • February Retail Sales 0.6% (consensus 0.7%); Prior was revised to -1.1% from -0.8%; February Retail Sales ex-auto 0.3% ( consensus 0.5%); Prior was revised to -0.8% from -0.6%
    • The key takeaway from the report is the sales rebound itself, which will quiet some of the concerns about the January downturn, and help the market maintain its soft landing outlook.
  • Weekly Initial Claims 209K (consensus 218K); Prior was revised to 210K from 217K; Weekly Continuing Claims 1.811 mln; Prior was revised to 1.794 mln from 1.906 mln
    • The key takeaway from the report is that it is suggestive of a labor market that, overall, remains in good shape given the low level of initial claims -- a leading indicator -- and the much improved continuing jobless claims number. (Note: this week's report reflects the annual revision to the weekly unemployment claims seasonal adjustment factors from 2019 forward.)
  • January Business Inventories 0.0% (consensus 0.3%); Prior was revised to 0.3% from 0.4%

Friday's economic calendar features:
  • 8:30 ET: February Import Prices (prior 0.8%), Import Prices ex-oil (prior 0.7%), Export Prices (prior 0.8%), Export Prices ex-agriculture (prior 0.9%), and March Empire State Manufacturing survey (consensus -8.0; prior -2.4)
  • 9:15 ET: February Industrial Production (consensus 0.0%; prior -0.1%), and Capacity Utilization (consensus 78.4%; prior 78.5%)
  • 10:00 ET: Preliminary March University of Michigan Consumer Sentiment (consensus 77.3; prior 76.9)

FT : Joe Biden declares opposition to Nippon Steel’s takeover of US Steel

Joe Biden declares opposition to Nippon Steel’s takeover of US Steel
President seeks to keep company ‘domestically owned and operated’ despite America’s alliance with Tokyo

Joe Biden has declared his opposition to Nippon Steel’s proposed $14.9bn purchase of US Steel, saying it was “vital” for the American steel company to remain “domestically owned and operated”.

In a statement issued on Thursday, the US president characterised his decision as an effort to side with American workers, at a time when he is under pressure in his re-election campaign to retain the blue-collar vote in the face of aggressive courting by his Republican rival Donald Trump.

But the declaration risks damaging Washington’s relationship with Japan, one of its closest allies, at a time the US is attempting to rally allies and partners in the region to contain a frequently belligerent regime in Beijing.

“It is important that we maintain strong American steel companies powered by American steel workers,” Biden said. The White House said Biden had called David McCall, international president of the United Steelworkers union, on Thursday to “reiterate that he has the steel workers’ back”. 

Biden has described himself as the most pro-union president in US history and is banking on the support of organised labour in November. US Steel’s shares were down almost 2.5 per cent in late-morning trading on Thursday, having fallen by more than 12 per cent on Wednesday.

Biden’s intervention comes a day after the Financial Times first reported that he was preparing to voice concerns about the Japanese group’s proposed acquisition of the Pennsylvania-based steelmaker.

Nippon Steel last week formally filed the deal with the Committee on Foreign Investment in the US, the inter-agency panel that vets inbound deals for national security threats. The intervention by Biden raises questions about how Cfius will proceed in its investigation.

“Based on past practice, it is likely that Cfius would have been on track to clear the deal, likely with some conditions related to protection of domestic steel production and related jobs,” said Emily Kilcrease, a Cfius expert at the Center for a New American Security think-tank. “But, with the president’s statement opposing the deal, Cfius is potentially in the uncomfortable position of having to reverse engineer their risk assessment to fit a politically determined outcome.”

The intervention comes less than a month before Japanese prime minister Fumio Kishida is due to arrive in Washington for a high-profile visit designed to underscore the importance of the US-Japan alliance.

Heino Klinck, a former top Pentagon Asia official, said the timing of Biden’s statement was “inopportune to say the least” given Kishida’s visit. He said it also came as Congress debates legislation to ban TikTok and could feed a Chinese government narrative about xenophobia in the US.

The move caps months of debate within the White House about how to respond to a deal that has sparked a political backlash in Washington and Pennsylvania, a critical swing state.

Trump, who has also courted union workers in Pennsylvania and in other big industrial states, last month vowed to “absolutely” block the Nippon Steel deal if elected to another term in the White House.

“I would block it instantaneously. Absolutely,” he told reporters after meeting last month with the International Brotherhood of Teamsters, one of the largest US labour unions. Trump said it was a “horrible thing” that US Steel might be sold to a foreign entity.

“We saved the steel industry, now US Steel is being bought by Japan,” Trump added. “It’s so terrible.”

United Steelworkers, which is based in Pittsburgh, has long opposed the takeover.

“Allowing one of our nation’s largest steel manufacturers to be purchased by a foreign-owned corporation leaves us vulnerable when it comes to meeting both our defence and critical infrastructure needs,” United Steelworkers said on Thursday. “The president’s statements should end the debate: US Steel must remain ‘domestically owned and operated’.”

Bob Casey, the Democratic US senator from Pennsylvania who is also facing a tough bid for re-election in November, immediately welcomed Biden’s statement, saying: “Pennsylvania workers are the American steel industry’s greatest asset.”

Casey said he had “long held concerns that this sale could be a bad deal for our workers.”

Casey, who is likely to go head-to-head in November against Republican candidate and former Bridgewater executive David McCormick, added his “number one priority” was “protecting union jobs”, adding: “I’ll work like hell against any deal that leaves our steelworkers behind.”

The Information : Goldman Sachs, Girding for More Deals, Promotes Two Tech Banke

Goldman Sachs, Girding for More Deals, Promotes Two Tech Bankers
G
Goldman Sachs promoted two of its senior investment bankers this week to prepare for a moment it has long been hoping for: a return of tech deals.

Jane Dunlevie, a tech-focused banker who helped run Instacart’s initial public offering and Stripe’s $7 billion private capital raise last year, will expand her role to become global head of investment banking services for tech, media and telecom. She will also remain global head of internet investment banking. Jason Rowe, who has been running Goldman’s Canada unit, will co-lead software investment banking with two others.

The Takeaway
• Goldman promotes bankers Jane Dunlevie, Jason Rowe
• Goldman tech, media and telecom head Kim Posnett says firm is preparing for more IPOs
• Dunlevie to help decide how Goldman pursues deals around “the AI value chain,” including digital infrastructure, data centers and chips

Kim Posnett, who runs Goldman’s 300-person global tech, media and telecom group, announced the moves internally this week. She said in an interview that the firm was getting ready for more IPOs after Reddit launched its road show for investors this week. Goldman has said only seven tech companies launched IPOs in 2022 and 2023 combined, compared to more than 160 in the previous two years, crunching the bank’s dealmaking revenue.

“We have many more [IPOs] in our pipeline for the balance of the year. That’s not a statement I’ve said in recent years,” she said. “It could lead to a further opening of the equity markets, which is important for us to be prepared for.”

The expanded role for Dunlevie, a partner since 2020, will include helping to decide how Goldman’s tech group pursues clients and deals around a lucrative area—“the AI value chain”—Posnett said, meaning “digital infrastructure, data centers and semiconductors.”

Rowe, a partner since 2016, will join Goldman’s software investment banking leadership, which also includes Ryan Nolan and Nicholas van den Arend, as buyout firms struggle to offload portfolio companies or take them public. Rowe has previously worked on software deals such as Compuware’s $2.4 billion sale to Thoma Bravo in 2014, as well as Mobileye’s 2022 IPO.

Goldman ranks second in global investment banking revenue so far this year, with slightly more than $1 billion, behind JPMorgan Chase, according to Dealogic.

Goldman is among the underwriters on Reddit’s IPO, although rival Morgan Stanley is the lead bank on the deal. Goldman got the top banking assignment for software firm Rubrik, another highly anticipated tech IPO expected in the coming months. Some high-profile private tech companies Goldman has worked closely with, such as Stripe and Canva, have opted to sell shares to investors privately this year rather than go public.

Other upcoming potential tech IPOs, included on our Tech IPO tracker, include fintech Klarna, healthcare startup Tempus and cybersecurity firm Cato Networks.

The promotions come as Goldman Sachs has faced scrutiny about the lack of women in top roles at the investment bank. The Wall Street Journal reported Wednesday that about two-thirds of the women who were Goldman partners at the end of 2018 have left the firm or have a different title, while the same was true for just under half of male partners at the time.