Italy fails to grasp the nettle on central bank 11 Aug 2005 The Bank of Italy's reputation is in tatters, yet Berlusconi is more interested in stopping embarassing phone conversations being published. This scandal is undermining confidence in Italy's financial system. Some effective leadership is required.
Yahoo buys stake in Alibaba for $1bn 11 Aug 2005 The US internet group is paying a mindboggling 38 times sales for a minority stake in the Chinese web auction group. Yahoo's Chinese strategy hasn't worked until now. This is a highstakes bet on the world's secondlargest internet market.
Aviva sounds bum note on UK life market 11 Aug 2005 The UK insurance market leader sees weak growth in its home turf this year. It also faces increasing competition. The result? Scale and diversification matter more than ever. Small wonder Aviva is signalling more M&A.
Pay growth may stoke US inflation 11 Aug 2005 Wages are rising at 7%, up from 4% a year ago. That's generally a sign that inflation is on the way. The market expects US interest rates to peak at 4.5%. That could be too optimistic.
Deutsche Telekom revives German mobile unit 11 Aug 2005 It is just as well the group is firing up a second growth engine. It has been reliant for too long on US growth. And with the fixedline business struggling and Q2 earnings missing forecasts, investors need some reassurance.
Flatter US yield curve yet to hurt 10 Aug 2005 The easy profits from the carry trade, borrowing short and lending long, have gone. But hedge funds and banks have hardly noticed. The institutions have found ways to compensate. But the real test is yet to come, when financial conditions get tougher.
Old Mutual tries to lean on Skandia 10 Aug 2005 The South African insurer has used strong interims to talk up its organic prospects. The implication? A deal with Skandia isn't a musthave. That's probably a bit of a bluff: Skandia is a great fit strategically. But Old Mutual doesn't want to overpay.
UK rates unlikely to fall below 4.5% 10 Aug 2005 At least, that's what the latest Bank of England inflation report suggests. It forecasts that rate cuts could bring inflation up to 2.5%. True, the bank has been wrong before. But for the time being, another rate cut is unlikely.
Swisscom’s grip on growth falters 10 Aug 2005 It is not just the telecoms company s fixedline unit which is struggling. Its mobile unit is facing headwinds too. One way to revive growth would be through acquisitions. But with mobile prices rocketing, that won't be easy.
Koizumi stakes all on Post Office privatisation 9 Aug 2005 The Japanese prime minister is determined to reform the Post Office, which is a bastion of an outdated political culture. True, privatisation presents challenges, not least to the funding of Japan's government deficit. But this is a fight Koizumi must win.
KPN raises 2005 outlook 9 Aug 2005 The Dutch telecoms operator says ebitda will fall this year by less than feared. Its Q2 sales, unusually, rose. KPN hasn't proved it has turned the corner. But it has gained room for share buybacks and given investors a reason to hang on.
UBS investment banking disappoints in Q2 9 Aug 2005 It s the second consecutive quarter that the Swiss bank has underperformed in investment banking. True, this is partly offset by the strength of the private bank. But UBS is quickly losing its reputation for consistent outperformance.
Suez offers E11.2bn Electrabel minority buyout 9 Aug 2005 The Belgian utility s rising stock price has finally forced the French utility s hand after years of dithering. The funny thing is that Suez is unlikely to regret its shotgun marriage.
Lazard’s French hub suffers M&A collapse 9 Aug 2005 The investment bank has tumbled down the rankings. That matters more now that Lazard is a public company and is under constant scrutiny. Under pressure to deliver, it may now find it harder to advise companies against doing bad deals the hallmark of independent advice.
Only bankers win in Harmony saga 8 Aug 2005 The South African miner's giantkilling bid for Gold Fields didn't come off but it sure was expensive. Both sides made losses. Harmony's, though, are truly eyewatering. Its $90m of fees and capital losses are equivalent to 3% of its market value.
Oil majors should follow Kerr-McGee’s lead 8 Aug 2005 The US oil group has sold its mature fields at mouthwatering prices. That lets it concentrate on finding new oil. Other oil majors should do the same. The trouble is, they already have more cash than they know what to do with.
China’s Huawei in talks to buy Marconi – report 8 Aug 2005 The troubled UK telecom equipment maker s wad of cash and tax assets seem to make it a rich target. But the group's big pension deficit has the potential to derail a bid.
Barclays’ credit quality relieves investors 5 Aug 2005 The UK bank reported an 8.6% rise in H1 earnings. That's more than expected after the group warned of growing credit card arrears in May. But Barclays still faces cost pressures and retail banking problems. It will need to keep up the improvements to retain investor loyalty.
De Benedetti leaps on new bandwagon 5 Aug 2005 The veteran Italian financier is launching a E500m fund with Berlusconi to invest in distressed companies. The similarities with his previous wheeze a tech company at the top of the bubble are uncanny. But this may be a smarter bet.
Saban hits jackpot with E2.5bn ProSieben sale 5 Aug 2005 The Power Ranger billionaire is turning a fat profit by selling his stake in the German broadcasting group to Axel Springer. The same can t be said for minority investors. They will be paid 40% less.
Ollila to become Shell chairman 4 Aug 2005 Nokia's former chief executive is a good choice to become the first outside chairman of the oil giant. He may not know much about oil, but he led a radical transformation of Nokia in the 1990s. Investors will be hoping he can revitalise Shell.
RBS let down by UK retail 4 Aug 2005 No wonder the bank is looking for acquisitions abroad. Earnings at its UK high street arm stalled in the first half. Yet domestic rivals grew despite tough conditions. Investors are right to worry that RBS is being sidetracked by its foreign ambitions.
Bank of England prefers inflation to debt crunch 4 Aug 2005 The bank has just cut interest rates even though inflation is showing no signs of falling and growth is barely below par. The policy makers worry that overindebted consumers will throw in the towel. And they fear the consequences of this more than inflation.
Unilever beats Q2 expectations 4 Aug 2005 The food and household goods group grew underlying sales by 3.3% despite weak European markets and did so without sacrificing margins. That's encouraging. But in the absence of company guidance, it is still too soon to talk of a turnaround.
Mining cycle hasn’t peaked yet 4 Aug 2005 AngloAmerican s 43% increase in profits from operations is the latest sign of a booming industry. Coal is outperforming diamonds. Miners are scrambling to add supply. They will catch up with demand eventually, but not for at least two more years.
CI ditches Amvescap ambitions 4 Aug 2005 The Canadian fund manager was right to shelve plans to buy its AngloUS peer. Without board agreement, such bids rarely succeed. The withdrawal leaves CI with egg on its face. But it also places pressure on Amvescap s new chief executive to deliver.
China’s Google readies IPO 4 Aug 2005 Baidu.com is the most popular search engine in the biggest country on earth. It s even profitable. An attractive investment, surely? Not necessarily, considering the group s odd holding structure, demanding valuation, aggressive competitors and insider selling.
RBS keeps up the tartan quotient 3 Aug 2005 With the appointment of Sir Tom McKillop as deputy chairman, no fewer than 10 of the bank s 16 directors remain Scots. There s nothing wrong with staying true to your culture. But Royal Bank of Scotland is a global institution.
Private equity refinancings may store up trouble 3 Aug 2005 It s easy to see why private equity loves early payouts via refinancings they can raise the internal rate of return on deals. But sponsors remaining equity is more vulnerable to valuations falling as indeed is the new junior debt.
Credit Suisse takes credit market hit 3 Aug 2005 A 37% fall in Q2 earnings is not just down to a legal charge. Revenues from fixed income trading and underwriting junk bonds slumped. The bank has forecast better market conditions. It needs to make the most of them to keep its share price rising.