The Business Matrix: Wednesday 7 May 2014

Speedy expansion for Fiat Chrysler

Fiat Chrysler is betting on a breakneck expansion of its upmarket Alfa Romeo, Jeep and Maserati brands to compete with VW and other rivals. Chief executive Sergio Marchionne presented his strategic review thus: “Today is much more than a new chapter. We are writing an entire new book.”

Treasury to review penalties

The Treasury is to review whether punishments for bankers who break the rules are tough enough to deter others from doing wrong in the financial markets, where there are currently allegations of possible rigging of currency rates. MPs have criticised UK financial regulators for being softer than their US counterparts.

Healthy growth for sector in April

Britain’s services sector grew in April at its fastest pace this year, suggesting the broader economy is picking up more speed and raising questions about the Bank of England’s determination not to raise interest rates any time soon. The pound jumped to a new five-year high at one stage after the Markit/Cips survey.

Bayer outbids Merck rivals

Germany’s Bayer trumped rival pharmaceutical giants in the bidding for Merck’s non-prescription medicines business in a $14.2bn (£8.36bn) deal, adding to a string of major cross-border deals in the healthcare industry. The business sold includes MiraLAX laxatives and Afrin cold remedies.

Apple’s £40m hello for Ahrendts

Apple has welcomed Angela Ahrendts, its new retail boss, with a £40m golden hello. The ex-Burberry chief has been given 113,334 shares which vest over the next four years, worth just over £40m at current prices. Ms Ahrendts is credited with having boosted Burberry’s luxury image.

Mutanda mine a boon for Glencore

Glencore Xstrata’s Mutanda iron-ore mine in the Democratic Republic of Congo, jointly owned with the controversial tycoon Dan Gertler, was its star mining performer in the first quarter, highlighting why it is interested in buying ENRC’s operations in the country. Copper production rose 24 per cent.

Aberdeen Asset to remain ‘neutral’

The boss of Aberdeen Asset Management, Martin Gilbert, said the company would remain “neutral” ahead of the vote on Scottish independence later this year. He said “quite a lot of resentment” had been targeted at businesses which have taken strong positions on the issues.

Lloyd’s ‘exposed’ to Asian disasters

The Lloyd’s of London insurer Hiscox revealed it had a “small exposure” to the Malaysia Airlines and Korean ferry disasters during the first quarter of the year. UK floods and storms will have cost about £10m for a period when Hiscox took in £501.6m in premiums.

Goldman Sachs lends to Cohen

Goldman Sachs lent money to the controversial hedge-fund billionaire Steven Cohen secured against his $1bn art collection. Mr Cohen’s SAC Capital Advisors paid $1.8bn in November to settle insider-dealing charges in the US.

Hollande’s advice over GE bid

The French President, François Hollande, said GE’s $17bn bid for French engineer Alstom’s energy business needs to “be improved on jobs”. He said: “It’s not sufficient, so it’s not acceptable. There is another offer and we will see if it will be better.”