Slash And Burn

摘要

It felt like death by a thousand cuts. Already this month has seen plenty to rattle stockmarkets, from dreadful economic news to the continuing bloodshed at American International Group, an insurer. Commodity firms were given a reprieve on March 4th by hopes of a big stimulus package in China-though all they got was reaffirmation of the country's 8% growth target. Meanwhile, a new fear haunts the markets: the mounting number of firms slashing their dividends.rnThat banks and insurance companies will chop their payments is now understood, but the pain has spread. General Electric (ge) has cut its dividend for the first time in 71 years, Dow Chemical for the first time since 1912. In Europe previously reliable payers like Telecom Italia and Anglo-American, a mining firm, have reduced their payouts, and even bp has said it cannot increase its dividend at today's oil prices. Income investors were left to ponder Eurotunnel, the operator of the rail link between France and Britain, which will pay the first dividend since its creation in 1986. Its $9m may buy a few tissues for those mourning the loss of $9 billion of annual payouts from ge alone.