Thomson chairman ouster may be too late 31 Mar 2008 The French digital media technology company has lost 70% of its value over the last year. The ouster of its chairman and CEO Frank Dangeard may be too little, too late. And the board's continuing support of his strategy is mindboggling.
Who could execute Paulson’s regulatory blueprint? 31 Mar 2008 The Treasury secretary s plan to revamp US financial regulation looks comprehensive, but logistically and politically complex. Stitching it all together would tax an army of M&A experts, let alone stretched civil servants. Perhaps Paulson is bidding to extend his term in office.
Pernod defies gloom with healthy E5.6bn Absolut deal 31 Mar 2008 The French spirits group is paying top dollar for the Swedish premium vodka. That plugs a hole in its portfolio with a wellestablished and stillfastgrowing brand. But taking on debt topping 6 times its ebitda is a bet that any economic downturn will be shortlived.
Hungary in trouble as capital slinks back West 31 Mar 2008 Rising inflation and the retreat of foreign investors have forced the central bank to raise interest rates, despite a weakening economy. The dangers are great. Hungary's boom involved mortgages in Swiss francs not clever if the forint dives. Political crisis isn t helping.
UK Treasury spinning its wheels on credit crunch 31 Mar 2008 The UK Treasury s proposals for supervisory colleges and a USUK working group look like the kind of eyecatching initiatives dreamed up by spin doctors. Here s what the Treasury should really be discussing with other countries.
Facing losses? Go ahead and mark to myth 31 Mar 2008 That s the word from the SEC to banks holding distressed securities. Sure, marktomarket has drawbacks. But allowing firms to ignore it if they think market prices reflect firesales won t solve the credit crunch. By undermining confidence in banks' accounts, it may prolong it.
M&S board to blame for Rose’s plum role 31 Mar 2008 It s outrageous that the UK retailer felt obliged to promote Stuart Rose to executive chairman. But don t blame him. Rose can only hold M&S to ransom because his chairman and board failed to secure a successor.
AIG’s $20bn executive nest egg hatches discord 31 Mar 2008 The insurer s massive incentive plan surely motivated employees. It also created conflicts of interest. Intertwining the fortunes of AIG and its executives may have created wealth, but it ensured an acrimonious split.
Oil and pride push Middle East IPOs 31 Mar 2008 The region had $4.1bn worth of initial public offerings in the first quarter, a fourfold increase over the previous year, dwarfing Europe s $700m. High oil prices are the spur. A newfound passion of the region s rulers for stock markets also helps.
Fed needs right incentives to play supercop 31 Mar 2008 Paulson's plan assigns a broad role to the Fed. Having responsibility for monetary policy, financial stability and any rescues in one place makes good sense provided the Fed is always required to think of bailout funds as real money, not free subsidies from taxpayers.
Liverpool FC owners tell a cautionary buyout tale 28 Mar 2008 US investors George Gillett and Tom Hicks have fallen out in spectacular fashion over their yearold UK football club acquisition. Private equity firms teaming up again to do deals should pay close attention. Tough economic times can strain even the closest partnerships.
Falling trade deficit points to City and UK slowdown 28 Mar 2008 A smaller current account deficit is good news, but not when it reflects the hammering taken by foreign banks in the key sector of the economy. The City s pain and falling house prices suggest sharp slowdown is now imminent in the UK.
Punch withdrawal won’t fell M&B 28 Mar 2008 The only trade buyer for the pubs group has walked away. But M&B s shareholders needn t mourn too much. The company continues to generate cash and despite its recent woes and a discredited management, M&B still has options without an obvious bidder.
Student debt problems club Apollo 28 Mar 2008 The implosion of the student loan bubble is hitting forprofit education companies hard. Just look at Apollo Group. Despite spending more on attracting students, new enrolments disappointed investors, who marked the stock down sharply and with good reason.
BA makes a hash of Terminal Five debut 28 Mar 2008 It s tricky to open such a big project without problems, even after months of rehearsals. But the shambolic first day of the new British Airways terminal at Heathrow is deeply embarrassing for the UK airline. The fiasco couldn t come at a worse time for Heathrow s owner, BAA.
Safest job on Wall Street: SWF coverage banker 28 Mar 2008 Barclays named Gay Huey Evans to run its newlycreated sovereign wealth fund coverage. It won't be the last bank to create such a title. But unlike other faddish jobs this role isn t for deal junkies. It's more like Investor Relations.
Swiss Life thumbs its nose at credit crunch 27 Mar 2008 The Swiss life insurer has delivered strong profits, doubled its dividend and stuck by steep growth targets. That sets it apart from the financial peers laid low by subprime. Some of the optimism may be bravado. But it helps that Swiss Life was forced to be cautious early.
Homeowners shouldn’t wish for a Bear-like bailout 27 Mar 2008 Struggling borrowers objecting to JPMorgan s takeover of the Wall Street firm would probably be worse off under a similar deal than under existing relief efforts. What s more, the rapid drop in Libor has, for now, removed the risk of sharp rises in their interest payments.
Another reason for US airlines to merge: old planes 27 Mar 2008 Years of financial distress prevented legacy carriers ordering new aircraft. Now, ageing fleets are costing them dear in fuel and maintenance. Even if they could afford new planes, they wouldn't arrive for years. For some, merging with a younger carrier could be the answer.
Tough to get good policies in Argentina 27 Mar 2008 Argentine farmers are right to protest higher export tariffs. However, as with most commodity and energy exporters, Argentine economic performance depends primarily on world markets. That makes it difficult for the electorate to figure out which economic policies make sense.
Clear Channel clash highlights LBO refinancing risk 27 Mar 2008 The US radio operator and its banks are fighting over the terms of $22bn of debt financing. The banks want to halve the maturity to three years. Clear Channel would rather sue than refinance so soon. But the easy terms of early 2007 probably won t be back in six years, either.
Ospraie gets physical with ConAgra unit 27 Mar 2008 One of the $9bn fund group s funds is buying the food company s trading operations. The investment aside, the unit s physical commodities activities should inform Ospraie s trading. If that adds a lot of value, it ll be interesting when it s time to exit the investment.
Open Skies should strengthen Heathrow’s leadership 27 Mar 2008 The landmark transatlantic air treaty goes into effect on March 30. Its main impact will be in London. Despite congestion and Terminal 5 teething problems, Heathrow will gain additional US flights and increase its lead over rivals such as Paris.
Are accountants next in line for subprime blame? 27 Mar 2008 A new report critical of KPMG s role in the downfall of bankrupt lender New Century makes that look likely. But if so, it s the firm s own fault. More than any other type of professionals, accountants should have the upper hand when dealing with troubled companies.
Korea goes on buyers’ strike on US treasuries 27 Mar 2008 The state pension fund has decided to shun the low yielding US in favour of the eurozone. For now, there seem to be plenty of investors willing to take its place. But the fast rising US government deficit may inspire others to follow the Korean example, leading to higher yields.
Tata adds Chelsea chic to Mumbai mass-production 27 Mar 2008 The Indian car group recently unveiled the world's cheapest car. Now it has grabbed highend British icons Land Rover and Jaguar from Ford. At first sight, it s a schizophrenic move. But Tata group companies have managed to juggle the cheap and the exclusive before.
Kazakh mine meddling should worry investors 26 Mar 2008 The Nazarbayev government wants 15% of Kazakhmys, to match its holding in rival ENRC. Investors should see this as a reminder that the state effectively calls the shots and has little reason to put their interests first.
Asset gatherers benefit most from ETF boom 26 Mar 2008 Exchangetraded products have been one of the fund industry's most successful innovations. But bad timing and high fees can make them a much better deal for asset gatherers than investors.
The Fed should regulate Wall Street – all of it 26 Mar 2008 Hank Paulson seems to agree. The Fed is funding investment banks it doesn t, strictly, regulate. The Bear Stearns drama shows it s impossible to disentangle them from true banks. The Fed has real levers to deploy, too. It s wellplaced to lead a more coherent regulatory effort.
Vale fails to hit pay dirt 26 Mar 2008 The Brazilian miner s £44bn approach to UK rival Xstrata wasn t workable. A stubborn minority shareholder is one reason. Another is that the capital markets don t quite seem to share miners faith in longterm high prices.