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Text size [+][-]  Saturday November 21 2009GLOBAL EDITION

Journalists

Rachel Sanderson  -  Correspondent

rachel.sanderson@breakingviews.com
Telephone:  ++44 (0)20 7496 1872

Rachel Sanderson writes about Italy and Consumer Industries. Rachel joined from Reuters in London where she oversaw coverage of the European retail and luxury goods industries. Previously, she reported from Rome, Milan and Paris for Reuters print and television after joining as a graduate trainee. Her stories have been published in newspapers including the International Herald Tribune, the Guardian and the WSJE. Rachel read English Literature at New Hall, Cambridge.

Beer wars open a new front in Africa

A legal skirmish between SABMiller and Diageo could presage all-out warfare for Africa’s beer drinkers. A forecast 4% economic growth rate and fat margins have executives salivating. The old Africa hands at SAB may not like it, but competition should eventually help everyone.

Fiat’s Marchionne moves into reverse

The Italian automaker’s boss thinks big, but after failing to get Opel, Marchionne is backtracking on his rhetoric. Restraint fits with Fiat’s modest quarterly trading profit – and the big challenges the company still faces. Number one is creating a healthy Chrysler.

Tax amnesty could give Italy liquidity boost

The government is proposing a meagre 5% tax rate on its third effort to repatriate more of the suspected E600bn – one third of GDP – held offshore. The plan won’t do much for balancing the budget, but the funds might help some squeezed entrepreneurs to keep going.

UK legal eagles divide into have and have-nots

The financial crisis has been nasty for City lawyers overall. But Linklaters and Freshfields were aggressive with both cost-cutting and deal-seeking. For now, they’re doing fine. They will have to stay nimble, as the financial world is looking distinctly less lawyer-friendly.

Italcementi lenders pour cement on themselves

Bondholders claimed the Italian cement group’s buyout of minorities in Ciments Français meant rates should rise on $500m of debt. Rather than risk a court fight, Italcementi called off the deal. That leaves creditors with the same rates – and less chance of getting better ones.

British bad boys could make dynamic duo

American Idol judge Simon Cowell and retail entrepreneur Philip Green's reported plan to create a global entertainment company isn't just a sexy story. There's logic there too.

Online retailers smell a chance of IPO revival

Yoox and Ocado, two European dot-com survivors, are mulling stock market listings. Their models – one in grocery, the other in high fashion – aren’t much alike. But after 10 years, their backers may be keen to take advantage of returning risk capital.

Risanamento can’t blame market for E2.8bn problem

The Italian developer is set to refinance that much debt to avoid becoming the crisis’s biggest Italian casualty. A nearly-20% decline in property sales has hurt, but an Italian fondness for cosy relations between banks and entrepreneurs probably let it take too many risks.

Italy’s dangerous liaisons make for good business

Italy hasn’t been queasy about doing business with Libya and Russia. Libya is now more respectable, but some might still flinch at the prospect of a former terrorist state buying into defence group Finmeccanica. Even so, Italy will persevere with these profitable trade relations.

Luxury industry tries on cost cuts for size

The fashion set has never been known for parsimony. But dire times call for less caviar and champagne. So cost-cutting is the industry's new black. Anyone who doesn’t get the hang of “less is more” risks not being around when the good times slink back.

M&S’s better trading doesn’t get Rose off the hook

The UK retailer’s sales are declining at a slower pace. That feels like an achievement mainly because sales were falling so rapidly last year. Moreover, the whole sector is benefiting from warmer consumer sentiment. Boss Stuart Rose would be wrong to think the pressure’s off.

Sick man of Europe: it’s Berlusconi v Italy

It is not just the Italian prime minister’s reputation that is withering in the Roman sun. Italy’s economy is too. Reform is needed to break a vicious circle of low growth, falling exports and crippling debt. But with Berlusconi otherwise engaged, big change isn’t likely.

M&S should get moving with Rose successor search

Stuart Rose’s authority as the UK retailer’s executive chairman is diminishing fast. Investors have forced him to forgo part of his bonus. Divisions with his ambitious deputy chairman have become public. M&S’s plan to look for a successor in 2010 is too slow. It must start now.

UK public-sector jobs bloodbath may soak retailers

Tesco and Sainsbury’s have been in a more upbeat mood about the UK economy after posting decent quarterly sales. But shop-owners aren’t in the clear. The recession hasn’t hit the public sector yet. When it does, the pain could be severe.