Sarkozy should stay clear of L’Oreal family feud 2 Jul 2010 A cosmetics heiress, the richest woman in France, is being sued by her daughter. That's nasty family business. A French cabinet member and his wife are accused of being too close to her. That's politics. The president wants to get involved. That's ridiculous.
Three years on Blackstone may at last be a bargain 1 Jul 2010 When Steve Schwarzman and Pete Peterson shook up the private equity world with the firm s IPO in June 2007, they landed a fat $30 bln market cap. It was too rich a value even at that heady time. Finally, though, the numbers suggest Blackstone units could be worth a cautious look.
BT right to stand firm in pay dispute 1 Jul 2010 Workers want a bigger slice of the telco s recovery. Yet at a time of pay freezes elsewhere, demands for a 5 pct pay rise against BT s offer of 2 pct plus benefits look punchy. BT s revenues remain in decline and its pension deficit huge. A strike may not even be so harmful.
Microsoft learning hardware lesson the hard way 1 Jul 2010 The odd Kin semismartphone is being killed off less than three months after it was unveiled. The software giant should have figured out long ago it doesn t much get consumer gadgets. New management at its phone and game division may have seen the light. If so, it s about time.
AgBank may hold insight into China’s macro policy 1 Jul 2010 A week before the yuan was depegged, the lender's IPO prospectus predicted currency would rise 4 percent this year. Someone involved is lucky or in the know. The bank also says its shares won't drop below the offering price. Will that forecast prove as accurate?
Presidential mess undermines Merkel’s authority 1 Jul 2010 It took three rounds for Angela Merkel to get her candidate elected to the honorific German presidency. The chancellor's waning leadership, and the deepening rift with her coalition allies, will make it more difficult for her to act swiftly on the euro zone debt crisis.
What’s your bonus really worth? 1 Jul 2010 Under new European rules, bankers will see part of their bonuses retained, another chunk deferred and some may also be clawed back. The present value of a $1 million bonus could be cut to less than $800,000.
AIG chief right to put temper tantrums on hold 1 Jul 2010 The volatile Bob Benmosche fell out with his board and threatened to quit if Chairman Harvey Golub didn t. Now it seems the two men will try to work together. That s the more adult approach, but also safer for Benmosche after all, if a head rolls it could be his.
Tesco wrong target for UK exec pay revolt 1 Jul 2010 Some investors are taking a shot at the successful UK retailer's executive pay. This follows vain attacks on pay at other winning companies. Healthy beasts may look better when stuffed, but successful predators go after the weak. Protests should aim clearly at pay for failure.
Brazilian bankers’ yearlong carnival comes cheap 1 Jul 2010 Take Banco do Brasil s stock offering this week. While $5.4 bln, the 50 basis points in fees are exceptionally low and spread among five banks. This sets a precedent for the next megaoffering, of Petrobras stock. But with some $82 bln to be sold, banks can t afford to miss out.
U.S. debt-cutting panel may not be doomed to fail 1 Jul 2010 The Obama commission s Democratic cochair surprisingly favors big spending cuts over huge tax increases to bring fiscal balance. That may be the best policy, but looks like increasingly savvy politics, too. Such an approach makes an effective deal with Republicans more likely.
Second quarter brings i-banks back to earth 1 Jul 2010 After a strong start, some investment bankers thought 2010 would be a breeze. But lower deal volumes, nervous investors and a tough trading climate have taken their toll. Secondquarter earnings for most investment banks are set to be a third lower than in the first three months.
Euro zone will muddle through 1 Jul 2010 Although banks and sovereign debt could still provide flashpoints, a credible path for dealing with Europe's zombie banks and zombie economies is emerging. Unfortunately, it won't be a jolly ride and it could provoke a doubledip recession, say Hugo Dixon and Neil Unmack.
Deripaska loses battle in war over Norilsk 1 Jul 2010 The indebted Russian aluminium tycoon is fighting to get more cash out of the metals giant. But he was beaten down at the AGM by an old oligarch rival. The still well connected Deripaska will keep trying, but for now his crude attempts to increase his influence have backfired.
Auto sales defy positive statistical trends 1 Jul 2010 June numbers show annual U.S. sales stuck in the low 11 mln range. But ageing vehicles, low scrappage rates and 2 mln new drivers a year suggest sales should take off. If only customers weren t so jittery about the economy. That makes gauging a rebound nigh on impossible.