Andersen should have been kept alive 31 May 2005 The Supreme Court overturned the audit firm s conviction over the Enron affair. But the price has already been borne by investors. No doubt Andersen screwed up. But its death coupled with SarbanesOxley cartelised the industry and sent accounting costs rocketing.
Referendum adds to euro tensions 31 May 2005 The forex and bond markets have taken the French referendum result in their stride for now. But the EU has lost moral authority. Countries like Italy might now be tempted to pursue more reckless fiscal policies. That increases the risk of a big euro fall.
Khodorkovsky gets nine years after flawed trial 31 May 2005 President Putin has compared the oligarch s trial to the US legal proceedings against Enron boss Kenneth Lay or Bernie Ebbers of Worldcom. But the comparison is bogus. The postEnron purge has arguably strengthened US markets. Khodorkovsky s pursuit has weakened Russia.
EU court ruling is blow for Glaxo 31 May 2005 An EU court has failed to uphold the right of drugs groups to maintain different prices in different markets. That s bad news, not least for people in poor countries. They may eventually find their access to drugs restricted.
Gatecrashers threaten Italy’s salotto buono 31 May 2005 The strategic heights of Italian industry used to be controlled by blueblooded companies via a crisscross of shareholder pacts. But as BNL, Antonveneta and RCS have found, the pacts aren t impregnable. Brash new entrepreneurs are banging at the door.
Foreign delistings accelerate 31 May 2005 Companies in developed markets are increasingly dropping their secondary listings on foreign exchanges. Nestle is just the latest to do so. This shouldn't be seen as a sign of greater parochialism it's precisely the reverse.
Beware the bear-market rally in credit 31 May 2005 Credit spreads have tightened fast as investors have covered short positions in the wake of GM s and Ford s downgrades. But a slower economy, higher interest rates and more defaults all point to wider credit spreads, not tighter ones.
French non leaves the EU in disarray 30 May 2005 French voters have rejected a vision of Europe that was too bureaucratic and lacked legitimacy, particularly when promoting economic reform. The danger is that governments abandon reform altogether. To seize back the agenda, the EU needs a simpler, more democratic constitution.
UK bank investors spooked by rising defaults 30 May 2005 The UK banks sector has narrowed its traditional discout to the wider market in recent years amid hopes it had improved its risk management. But last week's warnings from HSBC and Barclays sent shares in the sector lower. It looks like normal service may have resumed.
Investors expect too much of Bollore at Havas 30 May 2005 Havas share price has risen by a third since corporate raider Vincent Bollore began buying stock in the French advertising group. Some of that price rise is warranted, but a lot of it is not. Havas now trades at a premium to rivals, and looks overvalued.
Three banks bet big on Wind 27 May 2005 Deutsche Bank, ABN Amro and SanPaolo IMI have underwritten a E9.3bn loan to finance the buyout of the Italian telecoms group. The banks risk paying away fees on the senior debt and possibly failing to offload their junior debt exposure at all.
Has Goldman lost its IPO touch? 27 May 2005 Goldman's IHS deal has been torpedoed by recalcitrant investors. That follows Boise last week, and the dismal performance of Lazard. The firm s yeartodate ECM record suggests Goldman overpromised issuers on value and possibly tripped up in execution.
Big no vote would add political risk to euro 27 May 2005 Slower eurozone growth and the fear of a French rejection of the constitution have already pushed down the currency. But a large majority against would change the tone. The euro s unsustainability might move from idle theory to practical possibility.
Unicredito scratches its German itch again 27 May 2005 The Italian bank s mooted plan to buy HVB doesn t look as barmy as its 2001 bid for Commerzbank would have been. But look closer and there are plenty of problems with this transalpine tieup.
Enel gets Wind away 26 May 2005 The Italian utility says its deal with Egypt s Orascom values its mobile telecom operations at E12bn. But to succeed with such a weak partner it has had to structure a very complicated deal and that creates additional problems.
Barclays warns of growing bad debts 26 May 2005 The UK bank is revising guidance given only three months ago following a deterioration in its credit card book. It seems the bank s initial stance was complacent given mounting consumer fragility against which it has only limited powers of defence.
Man Group reassures on hedge fund redemptions 26 May 2005 The hedge fund provider says redemptions remain stable despite the industry s recent spell of bad performance. To ram home its confidence it has hiked the dividend by 31%. But it may be too early to sound the allclear just yet.
Valuation fever cools for small oil firms 26 May 2005 Disappointments at wildcat explorers such as Regal and White Nile have sliced back valuations in the sector. Ironically, that may flush out trade buyers although they are more likely to be other small firms paying in shares, not cash.
Metso an odd target for Icahn and Gardell 26 May 2005 The activist investors are using the same blueprint for change at the Finnish industrial group as they did with Blockbuster and Skandia. But this relies on persuading hedge funds that the shares can rise quickly. And it s not a given that Metso s can.
Sibneft deal would solve Putin’s Abramovich problem 26 May 2005 The Russian president is fed up with Abramovich, the owner of Chelsea football club and oil firm Sibneft. Meanwhile, the oligarch wants out of Russia. Having a stateowned firm like Gazprom buy Sibneft solves both their problems.
Constellation told to put up or shut up 25 May 2005 The US drinks group has spent nearly a month trying to put together a bid for Allied Domecq. Now it has been given a deadline of June 29. That may be less time than it wanted. But it means Allied shareholders will now know where they stand by the EGM on July 4.
OECD call for lower euro rates misguided 25 May 2005 The rich countries club wants the ECB to stimulate demand with a rate cut. But in real terms, borrowing is already almost free. Lower rates would spur asset price inflation, not consumer demand.
Senior defection latest blow to JP Caz 25 May 2005 Wiles had been groomed as a possible successor to chairman Mayhew. Now he has jumped ship to join archrival Morgan Stanley. This comes as the new joint venture is already suffering in the wake of controversy over how it advised Manchester United.
Hedge fund Q1 inflows fall 34% 25 May 2005 If that's what happened in Q1 before the worst of the turmoil had hit Q2 could be a lot worse. Add in the fear of increased redemptions and the best times are behind the industry.
SocGen traders win upper hand 25 May 2005 The French bank has become more reliant on investment banking for profits than retail banking. Derivatives desks thrived in particular. SocGen has again defended its lead in the market. All the better if it can add more impetus to its retail arm too.
EMI may need to rethink its strategy 25 May 2005 The UK music firm's policy of focusing on fewer, profitable artists is risky. But it probably makes sense in the twilight of the CD era. The snag is that it may be the wrong approach for the digital world.
GUS disappoints with Experian delay 25 May 2005 The UK retail group is moving towards simplifying its structure: it is fully demerging Burberry and says Experian will eventually go too. With the high street in trouble, GUS isn't saying when. But if it doesn't shed some light, its slim conglomerate discount could widen.
Scottish Power sale may spur further M&A 25 May 2005 The UK utility s sale of PacifiCorp may encourage other European utilities to dump poorly performing US operations. Attention will now focus on E.on's weak US subsidiary.
Fazio shows favouritism in another bank bid 24 May 2005 The two bid battles have many similarities, including shareholder pacts. But there are also differences which may change the outcome. Having tried to frustrate ABN s bid for Antonveneta, the Bank of Italy governor has put a road block in the way of BBVA s E6.5bn BNL bid.
Vodafone warns of competitive pressure 24 May 2005 The group's alert that margins may decline slightly this year takes the edge off its promise to increase revenues by 69%. Dividends and buybacks have been hiked again. But they will only grow along with earnings a product of good sales growth but soft margins.