Britain boils up some euro fudge 16 May 2003 The euro's key absentee will not join this year. But Britain's politicians are rowing about whether to think again within 18 months. A few quarters' extra data won't alter the economic argument. A short delay would be pure politics and bad policymaking. No should mean no.
Orange cost-squeeze hits HQ 16 May 2003 The group has even had to abandon plans to move to a swanky new HQ. That's not surprising given its exorbitant E400m in headoffice costs. Thierry Breton, the new France Telecom boss, is reining in its mobile subsidiary. And that's making Orange a less fun place to work.
US bond rally may have gone too far 16 May 2003 It is only possible to justify extremely low yields if one believes in a long period of deflation. The Fed's acknowledgement that deflation is a minor risk has fuelled the rally. But with 10year yields at 3.5%, bonds may have overshot.
Allianz writes down E2.3bn in Q1 16 May 2003 Claims that Dresdner has stabilised kid no one. Investors who thought Allianz s rights issue was the turning point should brace themselves. The German insurer says there will be additional gigantic impairment charges this year if markets hold flat, never mind if they fall.
SEC investigates tying of loans to deals 16 May 2003 This is a hot issue, but it is not clear why the regulator is pushing its nose into it. If tying is an issue for regulators at all, it is one for banking supervisors, not the SEC.
UK governance moves beyond comply or explain 15 May 2003 Call the latest idea "accept or explain" shareholders should give reasons if they don't accept a company's explanations. This looks like a sensible antidote to mindless boxticking by corporate governance junkies.
Another City Midas under the spotlight 15 May 2003 WestLB is to "clean the slate" following bad investments. Up to E500m reportedly relates to a botched securitisation led by Robin Saunders. If true, this may tar the German bank's private equity guru. It would also be another example of overleveraged deals going bellyup.
London Stock Exchange feels the pinch 15 May 2003 The LSE's annual profits are up, but its resilience to the bear market is weakening. It is even struggling to sublet its office space. With scope for costcutting limited, the LSE's goitalone strategy is now entering its toughest phase.
Heineken reaches deeper into BBAG 15 May 2003 The Dutch brewer was stung by the reaction of investors to its E1.9bn takeover of Austria's BBAG. Now it's hinting at a doubling of expected synergies. But even with these, the deal doesn't look like a home run.
Deutsche Telekom has turned the corner 15 May 2003 The German telecoms incumbent is on track to cut debt to manageable levels. But shareholders shouldn t hope for much more, given DT s German cost base and US strategy.
Italian banks turn in mixed results 15 May 2003 Firstquarter earnings were better than expected. But strip out trading gains and the picture is less pretty. Even so, the sector continues to rise. Investors in some of the riskier banks may be riding a fools' rally.
Vivendi sales fall 15 May 2003 Even if you ignore the effect of a declining dollar, the conglomerate's shrunken portfolio still contains some very troubled businesses. By reaffirming its target of improving cash flow this year, it may be acquiescing in their decline.
Safeway suffers from long-drawn out bid battle 15 May 2003 Suppliers aren't giving the UK group as many rebates as they used to because they don't think Safeway will be independent for long. Safeway is trying to contain the impact by hacking back refurbishments. But, in this rat race, standing still is akin to running backwards.
Kingfisher spin-off no easy way to play retail M&A 14 May 2003 Investors might think Kesa, the electricals business, is suitably unloved. And Dixons is a natural buyer for Darty, the French unit. But Dixons would have to flog off the other bits. Plus, it looks like the UK group has too much on its plate to take the initiative.
Concerns over Debenhams bid look overdone 14 May 2003 It is a delicate situation. But Debenhams board seems to be vigorously carrying out its duties to shareholders. Some investors reportedly think the company shouldn't have allowed the group's management to talk to a private equity bidder.
Don’t be a bear, warns Bebear 14 May 2003 It isn't shortselling itself that annoys the Axa chief, but what he thinks is the motivation for it to get rich quick. But if the only legitimate investment strategy was buyandhold, the markets wouldn't function.
Spinning settlement misses its target 14 May 2003 The former chairman of Qwest is to donate his profits from hot IPOs to charities and "securities arbitration clinics" for retail investors. But it's Qwest shareholders, not New York law schools and museums, that really deserve compensation.
Alstom’s fate rests on cashflow 14 May 2003 The French engineering group can probably meet this year s liquidity needs from asset disposals. But Alstom has to squeeze out more cash from operations if it is to remain viable in the long run.
HealthSouth scandal engulfs UBS bankers 14 May 2003 According to the WSJ, they played a large role in shaping the inner operations of the scandalridden US firm. This sounds all too familiar. UBS s richlypaid health care bankers were a "special team" a bit like CSFB s Quattrone.
SABMiller joins ranks of overpayers 14 May 2003 What is it about brewers that compels them to bid up and overpay for assets, as SAB has done with Italy's Peroni? To make this deal work for shareholders, SAB will have to find a way of selling Peroni's beer through its global distribution channels.
Hedge fund tries to block TI-Olivetti merger 13 May 2003 Liverpool plausibly argues Olivetti should be prevented from voting its TI stake and, instead, forced to launch a takeover. Shareholder actions in Italian courts usually don't get far. But even if this action fails, shareholders are opening other fronts.
HVB shrinks – and it hurts 13 May 2003 The German bank may have cut its costs, but revenues are falling too as it cuts its balance sheet. While HVB remains short of capital, this process will go on and on.
UBS hums along in first quarter 13 May 2003 The Swiss bank s profits beat forecasts, there was a fixed income bonanza and the private bank continued to suck in funds. UBS even thinks it can see the end of the downturn. But there are a few blotches on the picture.
Fiat shows no sign of turnaround 13 May 2003 Losses continued and debt widened in the first quarter. So why is Fiat considering letting its lenders off the hook? Shareholders are best served by Fiat s banks pledge to convert E3bn of debt to equity. Don t scrap it.
Sky stays on target 13 May 2003 Everything keeps going right for the UK satellite broadcaster. Subscriber numbers are growing, margins are expanding and debt is falling. The future priced into Sky's expensive shares is evolving from an aspiration to a realistic, if still stretching, ambition.
Bertelsmann publishing sale raises E1bn 13 May 2003 The media group has sold its scientific publisher after a healthy auction. Its buyers will merge it with Kluwers, its former rival. The receipt ought to sort out Bertelsmann's debt problem. But it is not enough to put the group back on the acquisition trail.
Good riddance to golden shares 13 May 2003 The European Court was right to rule against golden shares, while letting governments keep control over privatised companies in some cases. This might act as a deterrent to further privatisation. But the evidence suggests such fears are misplaced.
KPN gropes for growth 12 May 2003 The Dutch telecoms carrier has fixed its balance sheet. Now it is mulling how to grow again. KPN must choose between buying market share in German mobile and surrendering margins there.
Russia remains a goldmine for investors 12 May 2003 Strong oil prices have helped turned the country from a black hole to one awash with black gold. Russian capitalism has matured too. Lingering perceptions of risk are captured in stilldepressed relative valuations. Such discounts may have room to narrow.
Debenhams gets £1.5bn private equity approach 12 May 2003 UK department store M&A has reached fever pitch. Debenhams is the latest target, following Selfridges, Allders and House of Fraser. Small, midmarket department stores have long been ripe for consolidation. Permira might want a seat at the table.