Deutsche Bank drops the ball in Q2 30 Jul 2004 Equities crashed instead of picking up the slack from fixed income as hoped, ramming home the unhealthy dependence on bond trading. Deutsche says it's still aiming at a 25% return on equity next year, but its chances of hitting this look increasingly remote.
International Power in $5.5bn deal 30 Jul 2004 The UKbased powergenerator s jv with Mitsui is buying plants on four continents from troubled Edison International. But international power generation remains an unproven strategy. Just look at IP's problems in the US.
Who should be M&S’s permanent chairman? 30 Jul 2004 Paul Myners would be ideal. He fought Philip Green, so has the biggest incentive to show M&S was right in refusing 400p a share. Having him stay for a year is a reasonable compromise. But it is a shame that M&S has to cast around when the best option is under its nose.
Italian pension crisis deferred 29 Jul 2004 The government has forced through its more restrictive pension law. The economics are good, even if the politics are still troubled. But nothing can repeal the Italian demographic implosion. More working years are inevitable. So is slower growth.
BNL guerrilla operation sparks M&A hopes 29 Jul 2004 The Italian bank s new rebel shareholder pact might push to revive talks with old suitor Monte dei Paschi. The risk, however, is that the two shareholder factions could enter into a stalemate. In this case, the stock would likely fall.
Shell settles probes into oil reserves 29 Jul 2004 Ramping up exploration efforts may help. But Shell will probably have to look at acquisitions too. That gets rid of one problem for the oil giant. But it doesn't solve the underlying problem of falling production.
Parmalat files suit against Citigroup 29 Jul 2004 The timing of the US bank s poaching of lawyer Steven Volk from CSFB is uncanny. It will need all the help it can get. Of all the banks that worked with Calisto Tanzi as Parmalat defrauded investors, Citigroup probably has the most to answer for. The timing of the US bank s poaching of lawyer Stephen Volk from CSFB is uncanny. It will need all the help it can get.
Alcatel missing out on recovery 29 Jul 2004 The telecom equipment maker focused on cash generation to survive the bust. Now it is suffering the consequences. The group appears to be losing market share in the mobile infrastructure market.
UK consumer debt gets harder to balance 29 Jul 2004 Households are in hock for a trillion. They can pay, as long as money creation keeps pace. The Bank of England is on the case. But the task is delicate. Too little money leads to massive bankruptcies. Too much leads to inflation. Everyone should stay nervous.
DaimlerChrysler springs a new leak 29 Jul 2004 The global carmaker has exited Asia and fixed its US business. But it now needs to repair its luxury brand Mercedes. Daimler is taking the right steps to achieve this. But BMW is overtaking it and investors may make the switch.
Should hedge funds be listed? 29 Jul 2004 A listing provides a currency for acquisitions and for locking in staff. But the real advantage is being seen to be comfortable with public scrutiny. RAB Capital does not seem to have grasped this.
HBOS shows it’s not all bad news on bank margins 28 Jul 2004 Everyone has been pessimistic on interest margins in the UK. It's one reason investors may be tempted to accept the Abbey bid. But maybe it's not all doom and gloom. HBOS's margins have held up better than expected.
Emilio Botin defends doubled bet on housing 28 Jul 2004 The Abbey bid increases Santander s housing exposure and into a market that s more stretched than buoyant Spain. Botin says there s no housing bubble in either country. If he s wrong, Spanish investors may rue the bid.
Drugs companies find small is beautiful 28 Jul 2004 Those drugs companies moving into smaller markets are seeing the fastest growth. Not only is the competition less fierce, but margins appear to be rising.
Renault weans itself off Nissan dependency 28 Jul 2004 Nissan s share in the French carmaker s profits is falling. Renault s European business is recovering. But this is not reflected in Renault s valuation. Investors could be more generous.
Equity buyers yawn at eurozone revival 28 Jul 2004 While the economy is up a little bit and that helps governments gain balance and reduces unemployment, eurozone growth still lags the US. The problem is that higher growth isn't enough to matter to equity investors. US concerns remain the biggest issue in European share prices.
Peugeot pins hopes on new models 27 Jul 2004 Success isn't certain in the competitive European market. But it's encouraging for Peugeot that Renault's and VW's new cars are struggling. Of course, there's always the risk that Peugeot's new models will flop too. But at least its finances are sound and it is cheap.
Allied Domecq considers fast-food IPO 27 Jul 2004 The UK spirits group s Dunkin Donuts business is performing well while restaurant chain stocks have rallied. While it has no concrete plans to do so, a partial IPO of the fastfood chain in the US is a viable and sensible option to consider.
Reuters won’t say when growth will return 27 Jul 2004 The timing of the rebound may be uncertain but there are reasons to believe it is coming. The risk is that global news and information providers is tempted to speed up its recovery with acquisitions.
BAT faces many headwinds 27 Jul 2004 The UK tobacco group hasn t sorted out all its problems with the RJR merger. Canada looks like a bloodbath. The strong pound and a likely lower than expected share buyback aren t going to help BAT either.
Fiat’s car business hits a pothole 26 Jul 2004 Second quarter losses at the auto arm were worse than expected, although the group result was saved by other units. Fiat's new CEO still thinks he can deliver a racy turnaround. But it is worrying that many targets have had to be pushed back.
Kerry and Bush are alike and different 26 Jul 2004 They are alike most of the time, when they aim for the centre. They are only different when they reassure their fringe supporters. Americans mostly want big government and bold promises. Sound government economics are not appealing. Kerry seems to be listening.
Why does Pearson hang on to the Financial Times? 26 Jul 2004 The FT isn t core to the UK publishing group, its circulation is falling and it is still losing money. The pressure may mount to sell. After all, the recent Telegraph sale shows bidders are willing to pay top whack for a quality paper.
European truck makers thwart consolidation 26 Jul 2004 Although there are too many competitors fighting for a atill small market, no one will take the first step. MAN's refusal to divest its trucks unit is just the latest example.
Abbey agrees unexciting Santander bid 26 Jul 2004 It is no real surprise the Spanish haven t been overgenerous. This isn t really a costcrunching merger. Santander will be banking on investors postM&S not wanting to see another big bid slip away. Oh, and rival bidders not stepping in.
Google starts the bidding at $29bn 26 Jul 2004 Even at the bottom of the price range, the internet search engine's valuation looks punchy. But that probably won't put investors off. So much for using an auction to get a fair price.
Abbey flowback may be manageable 25 Jul 2004 The UK bank s odd share register means stock may not hurtle back from Britain to Spain after a deal. That s a boon. But it will only help the Spanish if the deal has real industrial merit. Otherwise their stock will fall anyway.
UK pension underfunding remains a danger 23 Jul 2004 If Federal Mogul had provided enough, its UK pensioners would not be losing half their pensions. The new law will not resolve this problem. The lessons: Trustees should be more assertive. Companies should be less reckless. And more probelms should be expected. The lessons: Trustees should be more assertive. Companies should be less reckless. And more problems should be expected.
Parmalat banks won’t enjoy Bondi report 23 Jul 2004 The Italian group s administrator may not have singled out banks for criticism in his report to the industry ministry. But Bondi s suggestion that the fraud was knowable from 1997 leaves the door open for possible lawsuits.
Santander tempts Abbey with mainly-paper bid 23 Jul 2004 The Spanish are calculating that investors don t believe existing management can turn the UK bank round. That may be a reasonable call. But it s still going to be hard for Santander to sell the deal.