Summit Notebook

BMW keeping wary eye on rivals

November 2, 2009

After a year of unprecedented turmoil in the auto industry, BMW’s U.S. head smells blood in the water.

Tinkering whilst debt burns

September 29, 2009

What have Liverpool Football Club, French building materials firm Materis and German forklift truck maker Kion got in common?

Tiffany unlikely to sell lawn chairs

June 11, 2009

Tiffany & Co has no intention of selling garden furniture and risking brand dilution, steering clear of the product mix of bankrupt rival jeweler Fortunoff , CEO Michael Kowalski hinted this week at the Reuters Global Luxury Summit in New York.

from Funds Hub:

Counting sheep

March 26, 2009

By Lorraine Turner

 

Speakers at the Reuters Hedge Fund and Private Equity summit this week were asked "what keeps you awake at night" and the answers were wide-ranging, from "my 7-week old daughter" to "the next meteorite".

AUDIO – For the automakers — No Chapter 11, please

February 23, 2009

The plans are in.

Now comes the waiting, which, as Tom Petty can tell you, is the hardest part.

Now that General Motors Corp and Chrysler LLC have filed their plans of reorganization to the U.S. government and have started what looks like a long and not-painless process to make themselves smaller, more profitable and better suited to the current U.S. demand for new cars.

AUDIO-”Lost Decade” is not in the cards for U.S. economy — Sun Capital

By Ed Tobin
September 24, 2008

talarico.jpg

Enough with the view that the current credit crisis will drag the U.S. into a “lost decade” similar to the one that Japan suffered in the 1990s, says Gary Talarico, managing director of Sun Capital Partners. 
 
Talarico lived in Japan for 12 years and worked with Ripplewood Holdings as an adviser on the hugely profitable Shinsei Bank rescue deal. He says the U.S. is much more willing to take the pain of the crisis and emerge much stronger because of it. 
 
Japan’s strategy to cope with their crisis leaned more to the left, Talarico told the Reuters Restructuring Summit in New York. And because of that, the Japanese economy stagnated for years.
 
As for what is happening in the U.S. right now? 
 
“Creative destruction is a good way to describe it,” Talarico said in reference to the failure of Lehman Brothers, the buyout of Merrill Lynch and the government takeover of AIG. 
 
“These things have to happen. I’m very sad about Lehman. I worked there for 15 years and I absolutely loved the firm. It’s a possibility that if the government moved faster, they might still be alive today. A lot of things might be different. Unfortunately, it is very hard to see the future.
 
But things have to fail, he said.
 
“There is no doubt that reckless things were done. Reckless people have to take their pain. But what we can’t afford is a systemic meltdown. It has global implications as well. So, unfortunately, tax payers have to carry some of that burden.”
 
To hear Talarico’s view on why the U.S. is not headed for a Japan-style slowdown, click here

AUDIO-$700 bln bailout sparks inflation, moral hazard fear

By Ed Tobin
September 23, 2008

fridson.jpgMartin Fridson — known as the “Dean of the high yield bond market” — is concerned about what we don’t know when it comes to consequences of the U.S. federal government’s $700 billion bailout to help move toxic mortgage debt off their balance sheet.
 
Fridson, the Chief Executive of Fridson Investment Advisors,  told the Reuters Summit on Tuesday that beyond the unforeseen consequences that scare him most, moral hazard and inflationary pressures from the historic government action top his list of concerns. 
To listen to Fridson’s comments, click here

After Lehman, who do YOU think is next?

September 23, 2008

lehman1.jpg“Bankruptcies, they fall out of the sky, as we’ve all seen in the last two or three weeks,” Rob McMahon, managing director for restructuring at GE corporate lending, told the Reuters Restructuring Summit in New York this week.
    
The credit crunch has triggered Lehman’s bankruptcy and the $85 billion U.S. government rescue of American International Group.
    
At the Reuters Restructuring Summit, journalists at Reuters offices in New York and London are talking to bankruptcy industry insiders about who will be the next to fall.
    
What do YOU think is the next sector, or company, at risk for going bankrupt, and why?