Editor's Blog

Sweet train

A mixed bag, from the macabre to the subliminal

This week the 25th France Télécom employee committed suicide. A 48-year-old engineer hanged himself, following a shocking spate of deaths at the group over the past 18 months. There have been controversies over management methods promting calls for strikes, and an overwhelming amount of stress for employees. Didier Lombard's spokesman describes the chief executive as "profoundly affected", and the former state monopoly have been forced to review working practices following the introduction of what they describe as "control tools" used to supervise staff. The firm was privatised in 2004 and performance targets, tough management and workplace mobility programmes have been touted as reasons for this awful tragedy.

 

So this week, we're looking further across Europe for more answers, beginning with our old foe, the euro. It's just rallied to a six-and-a-half month high against the pound, not particularly surprising in the light of the falling pound. Will the euro break above 95 pence? This week's low so far, saw the pound fall to 91.43 versus the euro before coming back in at 91.60 pence, and analysts expect it to fall further before it starts to rise again.

Sterling remains a bugbear across the board, as the UK's public finances further deteriorate. It's not a necessary connector, as recovery has also been slow for countries using the euro, but the pressure is overall moving downwards in a more widespread fashion. It's no wonder then that Channel Tunnel's Eurostar have seen their passenger numbers rise - let it not be forgotten that those in France and Belgium can get value for money across the channel. The eight percent year-on-year rise for July to September, arguably skewed by 2008's tunnel fire, contributed to some 2.6 million passengers passing through the tunnel in that period this year.

Germany has been warned of a disaster waiting to happen, following the out-of-place pressure put on banks to raise capital ratios amidst a downturn. While at present everything looks healthy, the danger is of a credit crunch in 2010. Rollover debt for small firms forms the crux of the problem, alongside growing unemployment numbers and above that, a reluctance to admit to the seriousness of the situation.

And back to home territory, Lloyds Banking Groups is considering selling assets,  namely its Bank of Scotland portfolio management service, to Rathbone Brothers. This is in line with its exit strategy, as it seeks to cut reliance on government aid. The European Commission is set to take a proactive role in demanding banks shrink their businesses in order to repay government aid, and this move fits in nicely. But just who's playing boss?

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