Euro fiscal targets should depend on actual growth 1 May 2012 The rush to balance budgets as fast as possible can lead to a death spiral of austerity, or to growth-smothering tax increases. Deficit targets are needed, but struggling euro zone governments need some slack. The main goal should be to cut spending in the medium term.
Chesapeake board does too little, too late 1 May 2012 Stripping CEO Aubrey McClendon of the chairmanship and ending his personal investments in the firm’s wells are obvious, if belated, moves. But McClendon’s deal-making and borrowing have accompanied lagging returns. Shareholders deserve more radical changes in the boardroom.
World’s brewers reach last call for Latin targets 1 May 2012 The Brazilian AmBev’s Q1 earnings miss may be just the start. The Anheuser-Busch unit is paying $1.2 bln for the Dominican CND, one of the region’s last available beer producers of any scale. It’s more defensive than a growth play, as competition in Brazil is set to heat up.
Monster shouldn’t be Coke’s tipple of choice 1 May 2012 The century-old beverage giant could use a youth elixir, but it isn’t about to buy the hip and expensive energy-drink maker Monster. That sounds mature - in a good way. Better to create something than pay more than $11 bln, plus a premium, for a faddish brand that could flame out.
Lloyds investors’ long wait may soon be over 1 May 2012 The UK bank used the first quarter to speed up non-core disposals and nail down 2012 funding. Further mis-selling provisions, a misfiring branch sale and a miserable UK economy remain dark clouds. But if a few regulatory decisions go Lloyds’ way, it could soon restore dividends.
Fracking shale could cause global geo-tremors 1 May 2012 Shale gas accounts for less than 1 percent of worldwide energy use at present. But fracking is a growth business, and shale oil prospects are also altering the global hydrocarbon equation. The additional supply could change the geo-political and geo-financial landscape.
Saudis wouldn’t gain much from a union with Bahrain 1 May 2012 The house of Saud’s call for Gulf states to move beyond cooperation and combine into a single entity lays the ground for forming a union with the troubled island. Yet Saudi already bankrolls Bahrain and underwrites its security. The benefits of further integration are dubious.