VENTURE CAPITAL GETS SCARCE

European fintech firms are facing an “existential crisis” as venture-capital funding has dropped from “surplus to scarcity,” a McKinsey study found. Economies in Europe are expected to contract by 11% in 2020, before returning to pre-virus levels only in 2023. This reality brings forth a larger focus on business-model vulnerabilities and a shift in dynamics, thereby negatively influencing fintech funding, McKinsey said. SOURCE: Markets Insider


FACEBOOK MAY ‘UNLIKE’ EUROPE

Facebook said it may stop operating its core app and Instagram in Europe if it’s forced to suspend transfers of European Union data back to the US. In a court filing on the decision, Facebook said it had 410 million monthly active users in Europe. SOURCE: Business Insider

AGENCY OPTS FOR GOLDEN SHARES

A new EU investment agency could stop foreign investors from taking over strategically important European tech firms through the use of so-called “golden shares,” said the agency’s director at the European Commission. Jean-David Malo, director of the European Innovation Council, said his agency when co-funding European tech firms  “will have the possibility not only to invest in the company, but also to take golden shares” – a type of share that gives the holder veto power over certain transactions, such as mergers. SOURCE: science business.net

LUFTHANSA PUSHES COVID TESTS

Lufthansa plans to start making rapid COVID-19 antigen tests available to passengers in October and is weighing the option of opening test centres at airports in the United States and Canada. Lufthansa is considering making the new antigen tests initially available to its first-class and business class passengers, given limited supply. SOURCE: Reuters

REVENUE UP, HELPED BY COVID

UK’s PZ Cussons first-quarter revenue jumped 23% due to a spike in demand for soaps and hand sanitisers during the COVID-19 pandemic, but warned the health crisis could hamper sales in its beauty business. Cussons, which makes Imperial Leather soap and Carex handwash, said adjusted profit before tax from continuing operations fell to 62 million pounds, for the year ended May 31, from 72.3 million pounds a year ago. SOURCE: Reuters