Wall Street aflame with Goldman envy 22 Apr 2005 The firm s hydraheaded role in the NYSEArchipelago merger has rivals buzzing about conflicts of interest. But the real frustration may lie in the fact that Goldman managed these conflicts with aplomb and will continue to do so.
Nokia transfers pain to competitors 21 Apr 2005 The Finnish phone maker s price cuts have stopped its fall in market share. This is causing problems to lowend competitors like Siemens. And it has had some success in selling expensive phones hurting highend producer Sony Ericsson.
Fazio disadvantages ABN in Antonveneta bid 21 Apr 2005 While it won t let the Dutch bank buy more than 20% of Antonveneta, the Bank of Italy has let an Italian bank, Popolare di Lodi, do so. This sits oddly with recent assurances by its governor, Antonio Fazio, that Italy s banking system is open to foreign investment.
Pernod Ricard bids £7.4bn for Allied Domecq 21 Apr 2005 The French drinks group is having to borrow heavily to buy its British rival, just as it did when it bought Seagram's spirits assets. Whether this proves as successful as the Seagram deal depends on whether Pernod can find more than the E300m synergies so far announced.
Italian PM Berlusconi resigns 21 Apr 2005 Berlusconi may be able to form a new government, staving off the risk of snap elections. But the resulting coalition will be even weaker and more divided which has bad implications for fiscal discipline.
Time Warner looks safe in Adelphia deal 21 Apr 2005 With so many moving pieces, Time Warner/Comcast can offer a hefty premium for Adelphia's assets without busting a gut. A question hangs over Time Warner Cable s valuation. But even on this front, it would take a big move by Cablevision to upset the deal.
French referendum non would threaten euro 21 Apr 2005 The markets are calm about the prospect of France rejecting the EU constitution. But the consequences for the euro could be grave. The single currency s credibility depends on strong political support and shared fiscal responsibility. It can no longer count on either.
Archipelago merger a nice deal for NYSE 21 Apr 2005 The New York Stock Exchange s open outcry system was a relic of another age. The only question was when would it embrace the new technology. The sooner NYSE did it, the better a deal it would get. And reversing into electronic exchange Archipelago seems to be a good deal indeed.
Cheaper dollar not helping US trade with Europe 21 Apr 2005 Devaluation should aid exports and cut imports. But after three years of dollar decline, US trade with Europe is still not gaining traction. US buyers are paying higher prices rather than changing to domestic suppliers. The result is imported inflation.
VW sets the bar higher 21 Apr 2005 The German carmaker s new profit forecast implies it will cut losses at its Chinese operations this year. But the structural problems in its Chinese business can't be speedily reversed.
Inflation takes hold in UK 20 Apr 2005 It has been lurking for years in service prices, but covered up by falling costs in manufacturing, and a wise choice of index. The veil is lifting. And as expensive oil works through the system, inflationary psychology could make a comeback.
No need for rules against short-term investing 20 Apr 2005 After the revolt at Deutsche Boerse, Germany s finance minister Hans Eichel is mulling regulation to stop hedge funds making a fast buck. That may be good electioneering. But companies and their longterm investors do not need regulation to protect their interests.
Reuters almost turns the corner 20 Apr 2005 But not yet. Recurring revenues are still falling, if at a slower rate. The group says it may even report flat sales this year. Yet anyone who hopes for more may be disappointed. Reuters turnaround remains a work of years.
JP Morgan under pressure over cost cuts 20 Apr 2005 The group may be regretting its bold predictions of $3bn in savings from its merger with Bank One. It s going to be a close run thing to reach these goals. Nonetheless, the merger still created value.
What Greenspan could learn from Benedict XVI 20 Apr 2005 Like the new Pope, it was Greenspan's commitment to orthodoxy that got him the top job. But in office, the Fed chairman has sided with the heretics. Perhaps it is time for a monetary inquisition.
Bank of Italy is a very strange regulator 20 Apr 2005 Normally, central banks like their local banks to be well capitalised. But the BoI has let Lodi swoop on Antonveneta an escapade that could trash its capital ratios.
It’s time for investors to support Argentina 20 Apr 2005 Both the IMF and the US Treasury say Argentina should reopen its debt swap to include holdouts. This is a terrible plan. If it succeeds, investors in sovereign debt can wave goodbye to marketbased restructurings.
Fiat denial should be taken with a pinch of salt 19 Apr 2005 Just because the Italian group isn t seeking to renegotiate a E3bn convertible loan with its banks doesn t mean that there won t be talks. The banks would clearly benefit from stopping the conversion and Fiat might too. But negotiating new terms will be tricky.
High-yield wobbles could slow LBO craze 19 Apr 2005 Private equity houses have been the biggest drivers of M&A and profits on Wall Street. But higher funding costs, as highlighted by Masonite s aborted highyield deal, suggest that could be about to change.
Merrill may not be exact model for MS 19 Apr 2005 Phil Purcell's changes at Morgan Stanley seem eerily similar to those Stan O'Neal made at Merrill in 2002. And Merrill has since done well. But Purcell may find it hard to copy O'Neal for two reasons: business conditions are better; and MS is more dependent on investment banking.
A Weston back in charge of AB Foods 19 Apr 2005 George Weston, son of the legendary Garry Weston, has taken the helm of the UK family food group. His challenge will be to invest the group's cash to offset damage likely from changes to the EU sugar regime, a moneyspinner in the past.
Bond buyers should listen to ECB 19 Apr 2005 The central bank is worried about longterm inflation. But investors have pushed eurozone bond yields to nearrecord lows. They think slow growth is deflationary. But inflation can rise with low demand. Eurozone money supply is increasing too fast for comfort.
Alcatel picks Aussie as heir apparent 19 Apr 2005 The French telecom equipment maker s succession plan raises more questions than it answers. Namely, is it really a succession strategy? And if it is, does this choice represent another shift in the group s strategy?
Philips can’t avoid tech downdraft 18 Apr 2005 The Dutch conglomerate is at the defensive end of the spectrum, having disposed of many of its interests in highlycyclical tech businesses. The fact that investors are marking it down so hard is a sign of their disillusionment with the whole tech sector.
Prudential in double irony 18 Apr 2005 This Wednesday s results would have been a big day for ousted chief Bloomer, providing evidence to justify his controversial rights issue. Not only will Bloomer be out of the frame. But the front man will be a director who lost out to an old rival in Bloomer s succession.
Buyout firms should open their books too 18 Apr 2005 They want companies to let them do due diligence. But as Woolworths found, companies run a risk if they open up and the bidder walks away. It would be better to make disclosure symmetrical. Bidders should tell companies the critical assumptions they are using in their valuation.
New and old worries weigh on US stocks 18 Apr 2005 The new problems are stagflation and the end of the carry trade. With growth slowing and rates rising, profits are vulnerable. The old issue is corporate scandals, which won t go away. The market has already reversed its postelection rally. It could fall further.
Chinese revaluation would keep oil prices high 18 Apr 2005 The west is worried about oil prices. It is also worried about China s fixed exchange rate. But solving the latter might worsen the former. A renminbi revaluation would cut China s oil import bill. But these savings could support an even bigger Chinese thirst for oil.
Banks find ECM deals tough even without competition 18 Apr 2005 Take JPMorgan s E2.1bn Mediaset placement. The bank may have lost money on the sale even though the business was not auctioned. Why did JPMorgan take the risk? One theory is that it was trying to sew up the advisory business of Fininvest, the selling shareholder.
Why are so many retailers struggling? 17 Apr 2005 It isn t just the UK, where Boots, Sainsbury and M&S are coming under pressure. Carrefour, Benetton and Karstadt are also suffering. These more mature businesses have stopped moving and left space for smarter competitors like Tesco, H&M and Inditex to sweep the field.