Bonus is not a four-letter word 2 Feb 2009 You wouldn t guess, to judge by the noise emanating from Washington and Zurich. The financial world has itself to blame for abusing the sound principle of flexible meritocratic pay. The industry should admit a collective screwup and propose a solution before lawmakers strike.
Chinalco looks set to mine Rio Tinto 2 Feb 2009 The Chinese stateowned aluminium producer could help the AngloAustralian miner reduce its $39bn debt burden and dodge a rights issue. But with Chinalco already sitting on a $10bn loss, Rio might have to offer a sweetheart deal. Other shareholders could find that less appealing.
Hedge rules belong on to do list, but not at top 2 Feb 2009 New rules forcing US hedge funds to register with the SEC are probably inevitable, and make some sense. But the industry didn t cause the financial sector's crisis. Moves to tighten regulation of hedge funds shouldn t hold up efforts to improve the direct supervision of banks.
ECB should keep cutting as deflation stalks 2 Feb 2009 Having taken euro rates back down to their alltime low, the ECB's JeanClaude Trichet was hinting at a pause in cuts. But eurozone inflation has since tumbled, while monetary data show shrinking loans and contracting money supply. The ECB should keep cutting this week.