Local Spanish retail banks outgun SCH, BBVA 30 Apr 2003 Spain is Europe s most attractive banking market and that s been reflected in the glowing Q1 results of its local retail banks. SCH and BBVA swear they ll catchup with domestic rivals soon. Judging from their valuations, investors believe they already have.
Adidas losing traction 30 Apr 2003 The sneaker giant posted shining Q1 results, but hinted at a disappointing backlog, particularly in the US. Is this the Puma effect or the impact of a revamped supply chain, as the company suggests?
Infineon sticks snout back in trough 30 Apr 2003 The German chipmaker is raising capital for the third time in two years despite not obviously needing the money. Infineon has taken a sceptical view of the economy and the rally in markets. Other technology firms should take note.
Spanish regulator opposes Gas Natural bid 30 Apr 2003 The Energy Commission s recommendation is not binding. So Gas Natural s E25bn bid for Iberdrola is not quite dead, yet. But the report gives extra ammo to anyone opposing the deal which includes a large chunk of Gas Natural shareholders.
Deutsche Bank is a one-trick pony 30 Apr 2003 Almost all of the German bank s earnings come from volatile investment banking. But to be fair, Deutsche does seem to be trying to mitigate the risks that flow from that.
ECB monetary policy needs to come of age 30 Apr 2003 The European Central Bank should abandon its current 2% inflation ceiling and put in a new 1% to 3% targeted range. The pending review of ECB monetary policy, due in May, provides the perfect opportunity to do so.
Rhodia boss should still go 29 Apr 2003 Tirouflet has clung onto power for now. If not a magic solution, his departure might help restore confidence from its equity, and more importantly, debt investors.
Infineon threatens to leave Germany 29 Apr 2003 The chipmaker might relocate outside Germany. The country's rules and taxes are just too much for a business so much in need of flexibility. This isn't the start of a major exodus, although many bosses daydream of such an escape. But Germany cannot afford to lose firms this way.
Markets at odds over Ericsson and Alcatel 29 Apr 2003 The market value of both companies debt is far below that of their equity. One group of investors has read the tea leaves horribly wrong.
Tobacco investors still kicking 29 Apr 2003 Just look at Imperial Tobacco and Altadis. The two stocks are barely off September highs. But just because the sector hasn t suffered a derating doesn t mean there are no opportunities. BAT deserves a second glance.
France Tel delivers the cash 29 Apr 2003 Operating free cash flow is up by twothirds, thanks to socalled "quick wins" as FT's costcutting programme gets going. FT shareholders are being rewarded for bailing it out in its rights issue. But investors in mobile arm Orange have less cause to cheer.
Corus fights crisis with both arms tied behind back 29 Apr 2003 No wonder investors are pessimistic about the steelmaker s future. The Dutch have already vetoed a crucial disposal. Now it seems the UK assets are controlled by some bondholders.
P&G improves Wella preference offer – a tad 28 Apr 2003 The consumer products giant is keen to buy off an awkward squad of arbs who hold Wella nonvoting stock and could complicate the takeover. Bunging them an extra E80m in the context of a E6.6bn deal is small beer. Snag is that it is so small that it may not work.
Wall Street pays $1.4bn conflicts settlement 28 Apr 2003 The costs of their misdeeds during the bubble do not end here. Reputational damage will be hard to assess. And the cost of private litigation, particularly for the big three CSFB, Merrill and Citigroup may be substantial.
Alstom sells turbines to Siemens for E1.1bn 28 Apr 2003 The struggling French engineer is finally getting some momentum behind its turnaround plan. Siemens appears to have overpaid.
Dixons should escape regulatory crackdown 28 Apr 2003 Electrical retailers' practices in selling extended warranties may owe a lot to the Moroccan souk. And they seem to be very profitable. But that's not a reason for the regulators to get heavyhanded or for shareholders to get too worried.
S&N seeks £2.3bn from pubs sale 28 Apr 2003 The UK brewer's clean break from retail should give it greater flexibility to boost its beer business. But it should wait for the right opportunities before striking, not just those that happen to be available.
Telecoms stocks are on a tear 28 Apr 2003 The rally can be partly explained by restructuring. Investors may also be seeking protection against a weaker economy. Valuations are no longer generous. But they are still defensible.
Market-friendly candidates win Argentine votes 28 Apr 2003 One message from the vote: Argentines don t want their president to take chances with unorthodox economic policies. Investors can take succour from the result. But all this, and more, has already been priced into the recent market rally.
Internet investors regain confidence 28 Apr 2003 Emerging results from internet stocks have bolstered or beaten management guidance. That has allowed share prices to defy falling markets. Investors are letting a return of confidence get the better of them. Valuations of etraders and ISPs are already vulnerable again.
ABN Amro surfs US remortgaging boom 28 Apr 2003 With US rates so low, this can t go on forever. No wonder ABN is wary of giving an outlook statement. The Dutch bank got about 60% of its operating profits from the US in Q1 a huge chunk from mortgage originations.
Hands’ investors may lose £800m on Meridien 27 Apr 2003 The hotel group bought by the private equity guru faces disaster. Shareholders will be wiped out and creditors will take a haircut. Guy Hands will find it harder to raise money for his own fund. And the private equity industry as a whole will shudder.
Generali shaken by further instability 27 Apr 2003 Far from bringing peace to the Italian insurer, the recent assault from the country s biggest banks has brought further instability. The presence of the banks on the board is destabilizing. Management may be right in seeking a buffer zone.
OPEC ties itself in knots over output cuts, Iraq 25 Apr 2003 The speedy end of the Iraqi regime has vastly complicated OPEC s already delicate balancing act. It is always easier for the oil cartel to up output. Far harder is ensuring compliance to production cuts.
Egg shouldn’t be so imperialistic 25 Apr 2003 The UK internet bank s foray into France always looked quixotic. Setbacks have come as no surprise. Egg would do better to stay at home where it has real opportunities and challenges.
Credit Suisse returns to profits in Q1 25 Apr 2003 But unlike the other banks that have reported, investment banking wasn't really the star. That's because CSFB is shrinking.
WPP shows improving trends 25 Apr 2003 The advertising market looks to be stabilising. WPP is also continuing to squeeze costs. But a snapback rally in advertising spending is not on the cards yet.
Commercial banks should disclose derivative assets 24 Apr 2003 The banks don't want to be forced to mark these positions to market on the grounds that it will introduce volatility into their accounts. But volatility is a fact of life. And shareholders have a right to know the best assessment of the risks banks are running.
InterContinental warns of profit shortfall 24 Apr 2003 War in Iraq has hit its European business hard. Now its Asian business is being badly hurt by Sars. The newly demerged hotels group is stepping up costcutting. But that won't be enough to compensate. And bid speculation is evaporating.
Somerfield has faith in itself 24 Apr 2003 The British retailer has rejected a £510m approach which was at a 50% premium to its price before the news leaked. But Somerfield doesn t want to check out just now, as it thinks it can crawl out of its hole.