BT runs to stand still 31 Jul 2003 The UK carrier s new initiatives to boost growth are working, but merely offsetting a decline in the core business. BT may want to plough more cash into its core business before long. And that could cap its dividend.
BA reports worst ever Q1 operating result 31 Jul 2003 BA says it has less visibility on revenues than it used to. At least the costcutting plan seems to be going well. Despite Sars and the Iraq war, the UK airline jacked up volumes. But that was only achieved by cutting prices.
Sainsbury hit by double whammy 31 Jul 2003 The UK supermarket chain is losing market share and has been leapfrogged by cheaper rival Asda. It has been trying to shore up its position by buying things. But the regulators are sticking a spanner in the works.
Fiat takes first bite out of costs 31 Jul 2003 The group narrowed operating losses at the ailing car business. But cost cutting is going to get harder. It is too soon to conclude Fiat is on the road to recovery.
Deutsche Bank profits double in second quarter 31 Jul 2003 The results were pretty good. But then they ought to be. Debt is still going gangbusters. And there were no huge provisions. Even so, Deutsche missed earnings forecasts. Some parts of the bank, other than investment banking, are underperforming.
City workers say enough is enough 31 Jul 2003 But the best City workers are already standing up to their employers. Their skills are at a premium in the bear market. Employment lawyers must be rubbing their hands after a former Cantor Fitzgerald trader won £1m in damages after claiming he was bullied.
Vivendi counters gloomy news with mystery 31 Jul 2003 The coincidence of downbeat sales figures and MGM's withdrawal from its US asset auction looks unhappy for Vivendi. But the conglomerate is wellarmed against reverses. Its liquidity is now healthy, and it has avoided tying itself to a clear strategy.
Mobile phone prices will keep falling 30 Jul 2003 Colour screens, cameras and games haven t kept the deflationary wolf at bay. The industry s new production model plays directly into the hand of lowcost Asian producers.
AWG rebuffed 620p per share Bream approach 30 Jul 2003 Bream's siege of UK water company AWG may be dead. But it is far from buried. AWG rejected a final informal offer from Bream that was worth more than the 600p per share it was asking.
Debenhams criticised for selling on the cheap 30 Jul 2003 The department store has recommended Permira s 425p a share offer. But shareholders fear that it undervalues the company. While the offer isn t generous, lambasting the board doesn t seem terribly fair.
Abbey National rallies on half-year loss 30 Jul 2003 The UK mortgage bank says its core businesses performed less badly in the first half than it predicted only six weeks ago. Partly that's due to overconservative forecasting, and partly to Abbey jacking up market share by cutting prices.
Switzerland mulls future without a national airline 30 Jul 2003 In order to save Swiss International, it may be necessary to sell it to Lufthansa. The cult of the flag carrier is on the wane. This would deal it a further blow.
Prudential chops dividend by 40% 29 Jul 2003 The case for a deeper cut is not compelling the UK insurer still has proceeds from previous disposals squirreled away under the mattress. The Pru's growth strategy is proving very expensive. It will be some time before it can afford to jack the dividend up again.
Investors brace for other UK water sector rights issues 29 Jul 2003 United Utilities £1bn rights issue has put investors on their toes. The fear is that other firms will follow suit to fund investment. Perhaps. Until now, they ve stuck to the devil they know debt rather than the uncertain outcome of a review still a year away.
France Telecom invests cost savings in growth 29 Jul 2003 The group is taking excess savings from its costcutting programme and spending them on measures to boost revenues. That is fine as far as it goes. But investors will eventually want dividends or deals.
Spanish banks are on a roll 29 Jul 2003 The latest crop of results shows the Spanish banking sector is in rude health, with lending growing at an average 15% clip. There are only two problems. The first is that margins on these loans are wafer thin. The second is that competition is intense.
United Utilities launches £1bn rights issue 28 Jul 2003 Unlike rivals that have geared up heavily, the UK utility wants to fund itself with a big slug of equity. This only works if the regulator allows it a higher return at the forthcoming price review.
France places E1.2bn of Renault shares 28 Jul 2003 Secondary share sales are becoming all the rage. Big investors may be worried that the market rally won't last. The sale reduces the overhang of stock, which may buttress the value of the state's remaining shareholding in the French car maker.
Unicredito, Capitalia could do with Mediobanca’s cash 28 Jul 2003 The two banks are under pressure to show that their investment in Generali has paid off. Trouble is, some of Mediobanca s other shareholders might not feel the same way. Meanwhile, the bank is busily spending its cash pile.
Reform raises prospect of legal M&A 28 Jul 2003 Under new British government proposals, law firms would be allowed to drop their partnership structure, and even float. In theory, this could shake up City law. In practice, it is hard to see who would benefit apart from partners who sold out, of course.
Pearson still in the doldrums 28 Jul 2003 The publishing group says the decline in its firsthalf profit reflects a strongerthanusual seasonality and expects a strong second half. But there is no easy growth here: Pearson is mainly relying on cost cuts and competitive wins to outperform flat markets.
Vodafone ends Vivendi standstill 28 Jul 2003 The mobile giant which failed to snatch French mobile firm SFR off Vivendi last year is to end a bar on its buying Vivendi shares. In theory, this opens the way for Vodafone to bag SFR by simply taking over Vivendi. It wouldn't be so bold, though would it?
Debenhams pays bidder to rival Permira 27 Jul 2003 The move is designed to procure a higher bid. But it looks a dubious use of sharholders' funds. It breaks the cardinal rule that break fees should be linked to a bid being made. The move is designed to procure a higher bid. But it looks a dubious use of shareholders' funds.
Gent swaps dealmaking for the school run 25 Jul 2003 Vodafone's chief executive retires on 30 July, one of the few stars of the telecoms bubble who has managed to leave of his own free will. His track record is indeed exceptional compared to his peers not that it shows in Vodafone's share price.
Debenhams should recommend Permira offer 25 Jul 2003 The private equity firm is putting it on the spot by demanding a recommendation before a rival bidder is ready. But it wouldn't be in shareholders' interests if Permira walked away.
CSFB buys Deutsche private equity portfolio 25 Jul 2003 Deutsche is selling up after taking a bath on private equity. That's because it punted its own capital at the top of the market. CSFB didn't make the same mistake. But it did buy its private equity business from DLJ for a thumping price.
Goldman Sachs dips toe into India 25 Jul 2003 The Wall Street bank's Indian ambitions are not thought to be terribly radical. It will locate just 1% of global headcount there. Goldman should be moving more. After all, the bank's boss has said that most of its profits are currently made by only 20% of staff.
German M&A falls deeper in the mire 24 Jul 2003 The longawaited German M&A boom is as distant as ever. Deals fizzled out in the firsthalf, but picked up in the rest of Europe. Yet investment banks are still gambling on an upturn. When it comes, they will have to work hard for their money.
Earnings jump out of their Shell 24 Jul 2003 Instead it will up the dividend by 2.5% hardly heroic. That suggests Shell is still on the acquisition trail. The European oil giant earned more than $30m a day in the second quarter. Even so, Shell is shying away from buying back shares.
Cordiant bonuses under fire 24 Jul 2003 On the contrary. Those bonuses were merited by very hard work but on behalf of the firm's creditors, not its shareholders. Emptyhanded shareholders in the advertising group have blasted the "rewards for failure" that executives will get after its sale.