The Great Debate UK
It beggars belief that humbled telecom equipment supplier Alcatel-Lucent could be scooped up by a Chinese rival with nothing better to do. Huawei or ZTE seem credible candidates. The question is, why would they ever bother?
That didn't stop shares of Alcatel-Lucent from rocketing up as much as 21 percent on Wednesday on rumors of an unnamed suitor. Momentum was helped by a rating upgrade on the depressed stock by French broker Natixis. The shares later settled back somewhat to trade at 2.75 euros, up 12 percent on the day in Paris.
Why would a Franco-American company that is widely considered a failed example of industry consolidation be doing the same thing over again, but with the added complexity of China in the mix?
The typical explanation for cross-border mergers involving Chinese buyers is to acquire Western branding for goods produced at lower cost in China. But didn't BenQ's 2006 acquisition of Siemens mobile handset business spell the end of that kind of easy cross-border logic?
Around the world, governments are struggling to drum up buyers for the mountain of bonds they need to sell. And that's especially true for big deficit, low savings countries like Britain and the United States.
The returns they are offering on conventional government bonds are low and there's the risk of inflation eating away at their value. Perhaps it is time for a different approach.
It's not often you get to lift the hood and watch a power struggle going on in the engine room of General Motors. But the vice-president of GM Europe, John Smith, has just provided tantilising details of the arguments over the rival bids for Opel/Vauxhall, the main European arm of the fallen U.S. auto giant. Smith is the chief negotiator on the sale of Opel.
In a blog apparently intended to reassure Opel staff, but accessible to the public, he insisted GM had not specified a preferred bidder. But he made clear his own preference for the bid from Belgian financial investor RHJ International, which is loosely related to U.S. private equity fund Ripplewood, over the offer by Canadian-Austrian car parts maker Magna and its Kremlin-backed Russian partner Sberbank.
from Pakistan: Now or Never?:
Joshua Foust is an American military analyst. He blogs about Central Asia and Afghanistan at Registan.net . Reuters is not responsible for the content - the views are the author’s alone.
It would be an understatement to call opium cultivation in Afghanistan America's headache. The issue of illegal drug cultivation and smuggling has vexed policymakers for three decades, and led to a multi-billion dollar campaign to combat the phenomenon.
A new poll shows public opinion in Pakistan has turned sharply against the Taliban and other Islamist militants, even though they still do not trust the United States and President Barack Obama. Reporting on the poll, our Asia specialist in Washington, Paul Eckert, said the WorldPublicOpinion.org poll, conducted in May as Pakistan's army fought the Taliban in the Swat Valley, found that 81 percent saw the Pakistani Taliban and al Qaeda as a critical threat to the country, a jump from 34 percent in a similar poll in late 2007. Read Eckert's report here. (Photo: Pakistani Taliban in Swat, 2 Nov 2007/Sherin Zada Kanju)
The poll shows a wide divergence between Pakistani public opinion and the views of the Taliban on the implementation of sharia, a religious issue sometimes cited to help explain earlier tolerance of the militants. Some 80 percent of the respondents said sharia permits education for girls, one of the first services the Taliban close down when they gain control of an area. And 75 percent said sharia allows women to work, which the Taliban do not.
- Luke Baker is a political and general news correspondent at Reuters. -
The mountains and deserts of southern Afghanistan are far removed from the elegant charms of Trieste in northern Italy, but there will be a link between the two this weekend.
Foreign ministers from the Group of Eight nations meet in the Italian city on the Adriatic on Thursday for three days of talks, with the state of play in Afghanistan, as well as developments in Iran and the Middle East, front and centre of their agenda.
The murder of Kansas abortion doctor George Tiller has been condemned by prominent groups and activists on both sides of this divisive and emotive issue.
But the language used by some opponents of abortion rights who reviled Tiller for his work providing late-term abortions remained very strong.
Well-intentioned legislation often has the opposite effect. The European Commission’s new alternative investment directive threatens investment trust companies, an attractive form of pooled investment.
The Commission aims to “enhance investor protection.” However, in addition to hedge funds, the original French and German target, investment trusts would be caught in the new regulatory net. Unlike other pooled funds, investment trusts offer transparency, low fees, the discipline of a public limited company and a vote.
from Pakistan: Now or Never?:
- Joshua Foust is a defense consultant who has just spent the last 10 weeks embedded with the U.S. Army in Afghanistan. He also blogs at Registan.net. Any opinions expressed are his own. -
It is a cliché that, in counterinsurgency, one must be among "the people". In Iraq, the U.S. Army did this to great effect under the leadership of General David Petraeus, moving large numbers of soldiers off the enormous bases and into smaller, community-oriented security outposts. As a result, in densely populated urban areas like Baghdad, an active presence of troops played a significant role in calming the worst of the violence. The Western Coalition forces in Afghanistan, however, face an altogether different problem. Kabul is not Baghdad - far less of Afghanistan's population lives there than in Iraq, and the insurgency is concentrated outside the country's largest urban areas. In many urban areas-Herat in the west, Jalalabad in the east, Mazar-i Sharif in the north-a westerner is far safer in the city itself than out in the countryside.
from The Great Debate:
The United States is fighting a fire in the world economy, but Germany and some other European countries fear a flood of inflation as a result.
That clash of cultures is at the heart of transatlantic debate over whether Europe should spend more and ease monetary policy to revive growth, with a deep economic contraction certain this year and an end to the recession not yet in sight.