Telling It Like It Ain't

Fresh from reporting Deutsche Telekom's first profit in two years — after making a European-record €24.6 billion loss last year — CEO Kai-Uwe Ricke promised last week that 2003 was "the year of the turnaround." DT isn't the only telecom dialing up good numbers: a string of other phone companies have reported positive results, including British Telecom, which last week posted a 40% gain in quarterly profits. But phone companies aren't off the hook. BT's €8.1 billion pension hole dwarfs its income. And better profits owe more to cost cutting and asset sales than to underlying performance — €1.7 billion of BT's €4.2 billion income was from the sale of its stake in France's Cegetel. Long-term debt also remains staggering. DT, which has a stock valuation of €50 billion, trimmed nearly €5 billion from its debt last quarter, but even if it reaches its ambitious targets for the rest of the year, it will still be left with €52 billion to go. From now on, analysts warn, most telecoms may look more like utilities than cutting-edge market leaders. But, hey: utilities, with their slow, steady returns, at least keep the lights on. And for nearly dark telcos, that's a good call.

Reverse Discrimination

INDICATORS fits and starts More mixed signals from the U.S. economy. Analysts were pleasantly surprised by 1.9% first quarter GDP growth and corporate-profits that crept up 1%. But new jobless claims stayed high, at 424,000, and durable goods orders dropped 2.4% in April. The Best Of Friends Microsoft and AOL Time Warner agreed to settle their feud over Netscape, with Bill Gates' company paying $750 million to AOL, which will, in turn, use Microsoft's browser. Also: cats and dogs are said to be near a historic accord. sorry, u r sacked :( The U.K.'s largest personal injury claims firm, Accident Group, sacked 2,500 people Friday, by text message, after its parent company went bust.

Women drivers — you know, those annoying motorists who actually stop at stop signs and indicate when they're turning — may be the scourge of petrolheads everywhere, but they have one group of fans: insurance companies, which charge women lower premiums based on the safer driving record of their gender. But perhaps not for much longer — if the European Commission has its way. The Commission wants to eradicate sex discrimination in insurance and pension products, and could have draft legislation to do so in place by the end of July. For women, that could mean higher car premiums. But it could also mean higher payouts for women on annuity products. Traditionally women, because they tend to live longer than men, have received lower amounts on such retirement products; that would be outlawed. It's enough to make you stop and ask directions. — By Jennie James

Under Pressure
Moody's may cut the A3 rating on David "Bowie Bonds" — which the rock star sold for $55 million six years ago, backed by future royalties. Moody's blamed the global music-sales slump, but may have just had another listen to the Thin White Duke's Tin Machine.

The Bottom Line There is some idea in Britain that behind every great fortune there is a great crime. CHRISTOPHER GENT,outgoing Vodafone CEO, defending his €3.3 million pay package as he presented his last annual report at the company