The Fed has a lot of power to combat deflation even if short-term interest rates go to zero. 29 Nov 2002
HSBC/Household deal spread looks wide 29 Nov 2002 With a year of thin gruel drawing to a close, have merger arbs lost their appetite for risk? The value of HSBC s offer is 11.4% above Household's closing price. But the chances of the deal collapsing don t look huge.
Sandy Weill drops out of his daughter’s IPO 29 Nov 2002 From a PR perspective, this may be the right decision. Underwriting the IPO could have exposed Citi to charges of nepotism. But was it a good business decision? And will other of Weill's strong ties lead Citi to walk away from other valuable business?
More bad news for UK managed pubs 29 Nov 2002 JD Wetherspoon seemed immune to the sectors' troubles. Its profit warning shows it clearly wasn't. The economy's slow down is taking its toll. JD Wetherspoon needs to find a way to get more people in the door.
BNP snaps up another 5% of Lyonnais 29 Nov 2002 Its siege of its French banking rival is hotting up. But it still could be a long one. It s hard to see how BNP can storm the ramparts. Lyonnais' noyau dur and banking regulations provide it with strong defences.
Intesa in surprisingly good nick 29 Nov 2002 Despite a host of disasters Brazil, bad loans and an outofthe money put option the Italian bank's capital position is OK. The next stage of the turnaround is to deliver doubledigit returns on equity. If that's achieved, the stock will continue to rebound.
Cadbury risks overpaying for Adams 28 Nov 2002 Instead of engorging on Adams, Kraft and Cadbury might consider merging their confectionery businesses. So do Kraft and others, who can t squeeze major costs from the US gum and mints maker. Nestle could squeeze the most from Adams.
Munich Re posts E859m Q3 loss 28 Nov 2002 A small pat on the back for the world s largest reinsurer for its operational performance. Premiums are rising at a fair clip. Less good, though, is its asset allocation, especially to German banks. Munich may yet have to support an HVB recapitalization.
Vodafone denies planning higher Cegetel offer 28 Nov 2002 Negotiating tactics aside, it may not make sense for Vodafone to make a significantly higher bid for the French telecoms firm now. Right now, its extra offer would be for 85% of Cegetel. If Vodafone waits 8 months, it need only pay a higher price for 70%.
Dixons stamped on by tax change 28 Nov 2002 The UK retailer will start paying tax on some profits from the sale of extended warrantees. The end of this loophole will add £20m to Dixons' tax bill. Other retailers will be affected too.
MyTravel lives to fight another day 28 Nov 2002 The UK travel group has secured an extension of its £250m credit facility. Its future now looks assured for another year. The company has scrapped its final dividend and replaced its finance director. The challenge is to restore some shareholder value.
How much might a war on Iraq cost? 27 Nov 2002 There has been much debate about the possible political consequences of a war on Iraq, but little about the economic costs. That does not mean it s not worth trying. Here is a gruesome sumoftheparts of what war in Iraq might cost the US.
Benettons in tricky fund-raising for Autostrade bid 27 Nov 2002 It wouldn t be surprising if prospective lenders drove a hard bargain before committing the cash. Already, the Benettons seem to have backtracked on one part of their plan.