Monthly Archives: October 2014

Tesco negotiates troubled financial waters

Supermarket Sweep

Tesco store UK

If you witnessed the meteoric rise of British grocery giant, Tesco, through the nineties and noughties, you would be forgiven for thinking that only a global disaster of outlandish proportions could halt this retailing leviathan’s triumphal march.

Today, Tesco announced that the black hole in its first half profits is not only bigger than anyone thought (£263m) but some of it also stretches back a good deal further than anyone imagined – certainly beyond the current accounting period. The Deloitte report will now be passed to the Financial Conduct Authority for further investigation into how this monumental blunder happened in the first place. It is a savage blow for a company already embattled by tough market conditions that have led to falling sales and sharply reduced trading margins. Continue reading

Fidelity Succession Plan Picks Nepotism Over Capitalism

Abigail Johnson Fingered as Next CEO of Fidelity

Fidelity Investments has a new CEO in Abigail Johnson. The announcement comes as no surprise, but provides some insight into the controlling family’s future outlook for the mutual fund giant. They thus signaled their preferences for the status quo over capitalist innovation and creative destruction.
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