Text size [+][-] Saturday November 7 2009GLOBAL EDITION
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Fortress and Blackstone both went public in 2007 in high-profile, over-priced IPOs. Both have since been beaten heavily down. But their third-quarter earnings underline the larger Blackstone's apparently superior ability to diversify its business and keep investors on side.
The megabank is hiving off the insurer, one of Sandy Weill’s first acquisitions. But it’s not a clean break. Citi is keeping much of Primerica’s earnings and will remain a major shareholder for now. It’s a fittingly complex way to mark the dismantling of Citi’s sprawling empire.
China is spreading its trade tentacles through Asia and Africa. Merging its biggest bank with the emerging-markets lender would create a financial giant to match. ICBC would gain both assets and expertise. Given the headwinds ICBC faces, now would not be a bad time to pounce.
The UK airline is haemorrhaging cash and frantically cutting costs to deal with a probable £1bn fall in sales this year. It is hard to see how BA can pull off its long-discussed merger with Spain’s Iberia in this state. But while progress is slow, BA’s fortunes may be bottoming.
by Martin Hutchinson
US unemployment has reached 10.2% in spite of a growing economy. Meanwhile, productivity is surging. That’s normal in recoveries, but it began early and may continue. If so, jobs may be slow to return and unemployment could reach a record, weakening banks and depressing wages. 6 Nov 2009
by Lauren Silva Laughlin
Fortress and Blackstone both went public in 2007 in high-profile, over-priced IPOs. Both have since been beaten heavily down. But their third-quarter earnings underline the larger Blackstone's apparently superior ability to diversify its business and keep investors on side.6 Nov 2009