Dell deal
$24bn buyout
Computer hardware giant Dell is being taken private in a $24.4bn deal, the largest buyout of its kind since before the financial crisis. The deal, structured as a leveraged buyout, is being led by Dell founder Michael Dell and supported by Silver Lake Partners and software giant Microsoft, which is providing $2bn of finance. Investors are being offered $13.65 a share, which is around one-quarter of Dell's peak share price - some may hold on for now to see if a rival bid is launched although commentators think that Mr Dell's involvement in this bid makes that highly unlikely.
Glimmer of hope?
Improving figures
The UK economy may actually avoid the slip into a triple-dip recession if the latest improving figures are to be believed. The dominant services sector returned to growth in January after shrinking for the first time in two years in December. In fact, a reading of 51.5 for the CIPS/Markit purchasing managers index for the sector was the strongest showing since last September. Further positive news came in hints that the retail sector may be showing some signs of life and in news that house prices and mortgage approvals look to be edging ahead, fuelled by government incentives for both lenders and buyers.
See Economy needs monetary boost
Bad, bad banks
More fines
The UK's troubled banking sector continues to make two steps forwards and one step back as it bids to haul itself out of the biggest crisis of confidence for decades. This week Barclays continued its long walk back to credibility, with chief executive Anthony Jenkins continuing to ring the changes at the bank by jettisoning executives with links to the old regime. Barclays also booked another £1bn of provisions against PPI payouts and other fines for previous malpractice. Meanwhile, RBS is to pay £390m to US and UK authorities in fines for Libor manipulation, with the funds to be found from the bank's bonus pool after the government balked at the idea of taxpayers funds being used to pay fines.
See Stability descends on the banks, for now
China crisis coming
IMF warning
The International Monetary Fund has warned that one of the major drivers of China's growth, its huge rural population, is likely to wane over the coming years as China's "demographic dividend" begins to fade. The long-term legacy of the one child policy means China's population growth is beginning to slow while increased living standards also means the number of elderly is also on the rise. Coupled with the fact that the great migration from rural areas to cities will also begin to fade in the next few years, and the IMF has predicted that the army of migrant workers will run out by 2020 and by 2030 China will have a labour shortfall of 140m workers.
BP bill balloons
Up to $90bn?
Fears were raised this week that oil giant BP could eventually face a total bill of up to $90bn for the Gulf of Mexico oil spill. The company has already spent $32bn on reparations and fines and has budgeted for a total of $42bn but the latest indication is that the individual states of Alabama, Louisiana, Mississippi and Florida and various local government bodies there are claiming a total of $34bn on top of previously expected costs. Meanwhile, BP also faces potential costs of up to $21bn from charges in relation to the US Clean Water Act.
Borrowing blow
IFS warning
The Institute for Fiscal Studies (IFS) has warned that the chancellor is borrowing far more than previously envisaged and will have to ramp up spending cuts even more sharply should he still be in office following the next election. The IFS says that, by 2015, the government will have borrowed £64bn more than previously forecast after the weak economic conditions laid waste to deficit reduction plans. This suggests that budget cuts beyond 2015 will be even sharper, with the IFS forecasting total departmental budget cuts of 30 per cent between 2010 and 2018 and a total of 1.2m public sector jobs lost, up from previous forecasts of 900,000.
