Quotes of the Day

Michel Bon turned France Telecom (FT) from a national fixed-line phone company into a European powerhouse. But the acquisition binge that brought the company Orange, a 28.5% stake in MobilCom and a disastrously expensive 3G presence also left it with a staggering debt of nearly ?70 billion, and as Bon resigned last week that looked like his lasting legacy. FT now seems to be headed for a ?10-15 billion rights issue to plug next year's funding gap. But that's a flimsy plaster for a company that hemorrhaged ?8.3 billion last year and ?12.2 billion in this year's first half. Already, in the meeting that saw Bon's departure, FT voted to abandon MobilCom, which will likely throw the German cellular company into bankruptcy. But that was probably the easiest step in a restructuring that may need to reverse FT's entire strategy and hive off even the most prized possessions to cut debt. "I think they only have one material asset to sell outside the domestic business, and that's Orange," says Nomura analyst Mark James. The very idea of selling or completely de-merging the telecom crown jewel whose acquisition pushed FT's share price to all-time highs once looked like heresy. And the prospect isn't happier now that the relatively healthy Orange would have to be sold in a very sick market. But as Michel Bon could tell the next CEO, in Europe's current telecom environment, tough choices are about the only ones left.

SPACE
The Businessman in the moon
it's one great leap for businessman-kind: the U.S. government has given TransOrbital permission to launch the first commercial moon landing, from the Baikonur Cosmodrome in Kazakhstan, in 2003. Space is big business, with satellites generating more than $80 billion last year. But is there really money to be made on the moon? TransOrbital president Dennis Laurie believes the $20 million moon shot can generate $50 million in revenues by selling advertising (leave your business card on the moon for about $2,500), carrying scientific experiments and producing the most detailed lunar maps and videos ever. "Creating new industries on the moon is very cost-intensive," says Laurie, "so the key is finding ways that existing business translates effectively to the moon." The lack of a lunar atmosphere, for example, would add thousands of years to the life of data storage. And who knows? With earth-bound economic institutions in turmoil, even if we mess this planet up maybe someday we can still find an IKEA on the moon.

THE BOURSE
Bear market bargain
Hamleys, the British toy-retailing institution, used the economic downturn to go bargain shopping, buying defunct English Teddy Bear Co. for $1.1 million.

Disastrous Insurance
Europe's ailing insurance industry claimed a few more casualties. Top executives at Italy's Assicurazioni Generali and Britain's Royal & Sun Alliance stepped down, and Sweden's Skandia put its once-lucrative U.S. arm up for sale.

The Engine That Could
China restored its 30 million Internet users' access to the Google search engine. Alta Vista remained blocked.

British Energy's meltdown
Britain's government threw British Energy a $640 million lifeline but did not rule out bankruptcy for the struggling nuclear company, which provides 20% of the country's power.

INDICATORS
All Eyes On OPEC
Oil prices briefly topped $30 a barrel last week, and the International Energy Agency warned that tight supplies, rising demand and the prospect of an Iraq war could push oil even higher unless OPEC increases production when it meets on Sept. 19.

Preparing For The Worst
Russia began offering foreign companies insurance against corrupt judges, officials and politicians. The initiative is intended to boost foreign investment, which fell 25% this year. But after last week's kidnapping of Lukoil vice president Sergei Kukura, investors may not be quite convinced.

Pocket Protector
Levi Strauss, the jeans group, may soon be a dirty word in the telecom industry — and not just because those button flies are so tricky. Levi's is unveiling a new line of trousers with "antiradiation" mobile-phone pockets, even though research has shown no definitive radiation risk to phone users.

Crowded Courtroom
250 major companies asked the U.S. Supreme Court to postpone the largest-ever asbestos trial, saying dissimilarities among the 8,000 claimants, who have a range of symptoms, made it inherently unfair. Asbestos claims could cost global business $355 billion.

BOTTOM LINES
"It's true I can spend more time with family and friends. But it means spending more money on them too."
Chang Ki Tak, office worker, on new South Korean legislation limiting the work week to 40 hours

"We are horrified. It's like being called the Viagra family."
Russell Cialis, public relations consultant, explaining why he's fighting to make Eli Lilly rename its Cialis impotence drug

"I feel joy when I see the Tokyo government office or Ginza, where I work, destroyed by Godzilla."
Hideki Ogawa, recording engineer, on why he is eagerly anticipating the 26th Godzilla film since 1954

• BLAINE GRETEMAN
• 3G woes at the heart of FT's problems