Sterling could reach $1.70 before feeling vertigo 4 Aug 2010 The pound's upward trend should gain continued support from the government's promise of serious fiscal medicine. But the growth and inflation outlook is very uncertain. When the economy tastes the bitter pills, the pound could easily turn back down.
SocGen stronger but remains in BNP’s shadow 4 Aug 2010 French lender SocGen had a fine second quarter, in spite of falling revenue at its corporate and investment bank. But the results were flattered by comparison with an abysmal 2009, and rival BNP did just as well. What's more, the Fortis acquisition has put BNP in another league.
Barnes & Noble predicament echoes Blockbuster 4 Aug 2010 Meaning, unfortunately, the fading video rental chain. The U.S. bookseller's cash flow is sinking and technological shifts look set to worsen that. Activist Ron Burkle may find himself in the role of Carl Icahn at Blockbuster fighting a losing battle against larger trends.
U.S. should shun hair-of-the-dog housing plan 4 Aug 2010 One Wall Street idea to boost growth is for the government to loosen rules so millions more Americans can refinance mortgages, thereby freeing up cash for spending. A desperate Washington might be tempted but it's too reminiscent of how the economy first fell into trouble.
UK retailers face winter of discontent 4 Aug 2010 The perennial pessimists at Next sound gloomier than ever. If this wellrun UK clothing retailer is seeing slowing demand, others will be suffering more. As January's rise in sales tax looms, a combination of stagnant sales and rising costs will sort out the strong from the weak.
Sanofi kick-starts Genzyme bid with lowball offer 3 Aug 2010 The French pharmaceutical group has approached the US biotech company with a $18 billion offer, according to Reuters. That's less than what Genzyme is trading at, and is unlikely to be accepted. But Sanofi needs Genzyme's pipeline and growth, and it can afford to sweeten its bid.
Investment banks’ trading needs better disclosure 3 Aug 2010 Trading has become the fattest slice of banks' revenue pie. But disclosure in this area is especially poor. By breaking down revenue in key trading divisions, UBS and the UK lenders do better than most. In future, peers should follow their example.
Lloyds shouldn’t dither over CEO succession 3 Aug 2010 Eric Daniels deserves some of the blame for the UK bank's valuedestructive takeover of HBOS. While he may have a job integrating the banks in the short term, he's not the best person to lead Lloyds in the long run. The board should get on with planning his succession in earnest.
UK rail auction is just the ticket 3 Aug 2010 For sale: brand new railway taking 300 kph trains, plus iconic London terminus, opportunity to add international traffic, and with stateguaranteed, inflationproofed income. Serious offers over 1.4 billion pounds only. No wonder all the usual infrastructure suspects are keen.
$7.1 bln gold deal takes double leap of faith 3 Aug 2010 Miner Kinross is buying Red Back Mining, hinting its target's Mauritanian mine contains more gold than thought. To justify the price, both that and the gold bugs' broader narrative need to play out. With Kinross shares off 5 percent, even some enthusiasts see that as a stretch.
As ex-bankrupt, GM deserves cautious IPO interest 3 Aug 2010 Companies that exit bankruptcy and trade publicly can significantly outperform the market. Yet around a third fall back into Chapter 11, mainly because they still have too much debt. GM will have a clean balance sheet but Uncle Sam's involvement may be the key swing factor.
Private equity churn has sour taste 2 Aug 2010 Data show record levels of European secondary buyouts. No wonder. Corporate and IPO buyers are cautious while privateequity firms can realise gains as vendors, or releverage assets as buyers. Whether this benefits investors exposed to multiple funds is another matter.
U.S. death tax shouldn’t get new life 2 Aug 2010 The tax could rocket from zero this year to 55 percent next. But Congress should rethink. It's a clumsy way to raise revenue. And the natural churn of the economy helps keep wealth somewhat fluid anyway. Abolishing estate tax is politically unlikely, but it should be kept low.
BlackBerry ban looks like tactical move by Gulf 2 Aug 2010 Research In Motion's smartphone is the first choice for the global banking community. The UAE restrictions on it are a big negative for business. Both sides have plenty to lose, and Apple's rival iPhone is gaining ground. UAE's move looks ballsy. But a compromise seems likely.
HSBC getting back to form 2 Aug 2010 The global bank's H1 net income doubled to $6.8 bln, beating expectations. Its investment bank put in its second best performance ever. HSBC's troubled U.S. business returned to loss and ROE is still below target. But the overall trend is positive.
China slows down just enough 2 Aug 2010 One of the world's key growth engines has shown new signs of slowing, with the manufacturing index down to a 17month low. That sounds like fodder for doubledip doommongers. But with further cooling measures looking unlikely, investors are right to take the news well.
U.S. drilling bill risks missing wood for trees 2 Aug 2010 The oil industry deserves tougher supervision after BP's massive spill. But the micromanaging measures approved by the House could fossilize today's best practices and discourage new technology. Any final law should focus more on empowering regulators to keep Big Oil in line.