Does Apple’s iPod matter any more? 3 Sep 2008 The tech company looks set to unveil a new product. Chances are, it's a new iPod. That should help boost the music player's flagging sales growth. But nowadays, the iPod is far from Apple's biggest moneyspinner. Shareholders should focus most intently on Mac computer sales.
Coke shows China is world’s worst kept secret 3 Sep 2008 Talk about bubbles Coke is paying a 200% premium for Huiyuan, a Chinese juice maker. The US firm should be able to squeeze value out of the $2.3bn deal. But the really juicy role goes to Danone, which has doubled the value of its investment in Huiyuan in two years.
Foreign snub of GSE debt has silver lining for US 2 Sep 2008 Overseas investors are paring their holdings of Fannie and Freddie debt, despite the US government s backing of the GSEs. But erstwhile buyers appear to be ploughing funds into US Treasury bonds instead, helping to keep rates low, thereby benefitting the world s biggest debtor.
LVMH spies safe harbour in boats for billionaires 2 Sep 2008 In rough economic seas look for a safe harbour. LVMH is putting money on megayachts for the super rich. It s a small deal, but smart strategy. The moderately rich may be feeling seasick, but selling boats at $50m a pop should be plain sailing.
Fukuda departure bodes ill for Japan’s economy 2 Sep 2008 The exPM tried to restrain public spending and wanted to balance the budget by 2011. But the catcalls that greeted his modest stimulus package last week made his position untenable. With the spending barons back in control, Japan s economy and credit could suffer.
Do Lazard’s savvy bankers sense trouble ahead? 2 Sep 2008 The advisory firm's executives are selling some $300m of stock. Lazard s stock has held up nicely relative to peers. But when the sellers include those with privileged vantage points like Bear and Lehman advisor Gary Parr investors should take note.
McCain needs to realise economics isn’t boring 2 Sep 2008 A successful McCain presidency would focus its foreign policy on major trading partners, use economic means to assist foreign policy goals, cut public spending and reform corporate tax. Oh, and return to traditional GOP monetary policy. Here are five ideas for change.
Google adds another front in battle against Microsoft 2 Sep 2008 The search group has staked its future on free online software. Microsoft s dominance in browsers could act as an impediment, so Google is introducing its own. Microsoft s position looks shakier with each Google push into cloud computing.
UK’s house fixes won’t work, but will cost 2 Sep 2008 A oneyear holiday from the transaction tax only invites buyers to purchase homes that will lose value. Incentives for builders will add to the supply of unsold properties, further depressing prices. The scheme's main effect: to worsen the government s fiscal position.
Bancassurance defies mortality forecasts 1 Sep 2008 Allianz wanted to keep a distribution channel for insurance products when it sold Dresdner Bank to Commerzbank. The German insurer and Commerz believe that the deal will help boost insurance sales. Bancassurance doesn t flourish everywhere, but it is stubbornly alive.
Man City scores sweet goal with Abu Dhabi 1 Sep 2008 The ailing Premier League football club is being sold by Thailand s exiled former Prime Minister to the more liquid cashrich Arab state. It s a sweet deal for the Blues as the Emirate bets it can spend its way to transforming this secondrate team into a brand to rival Man Utd.
Alcatel-Lucent’s new leaders won’t have it easy 1 Sep 2008 Former BT chief Ben Verwaayen will be the FrenchAmerican telecom equipment maker s chief executive. Philippe Camus, a former Eads coCEO, will be nonexecutive chairman. They are good choices. Their priority should be to end the rift between the company s French and US teams.
Commerzbank must protect its independence 1 Sep 2008 The German bank has clinched a good deal with Allianz for rival Dresdner Bank. The terms are financially solid. Commerz is being tough about integration. But Allianz will have 30% of the new group. That should not be a Trojan Horse for bad old habits of management meddling.
Why Detroit shouldn’t get any handouts 1 Sep 2008 The three big US car makers are angling for $50bn in government aid. It s understandable: they are struggling, and policymakers seem willing to throw money at financial sector basketcases. But helping Chrysler, Ford and GM would be much more dangerous, Richard Beales argues.
Irish banks may escape bloodbath 1 Sep 2008 The Emerald Isle s lenders look horribly exposed to its falling property market. Further pain is likely. But Irish banks have mostly avoided structured credit and have belowaverage arrears. Unless the Irish miracle unravels completely, the banks should weather the storm.
Darling’s dark UK talk could herald rash policies 1 Sep 2008 The UK Chancellor says the UK economy may face its worst crisis for 60 years. That could be a prelude to a desperate rescue act from the government. But the remedies on offer for the housing market would only delay the necessary correction and eventual recovery.
GdF Suez beginnings boosted by high energy prices 1 Sep 2008 With operating profit up 20%, the new French energy giant, born in July from the merger between Suez and Gaz de France, can look ahead with confidence. But investors will need more details about the capex plan and the merger s execution before they can form a serious opinion.