Xstrata investors can only hope for better As a producer of physical commodities, its rating will benefit far more from an improvement in the world economy compared to Glencore's more defensive profile, which includes its large trading business. So if there was ever a good time to buy Xstrata then it's now. Any sustained improvement in markets, such as China and the US, would leave Xstrata's value out of reach of the more pedestrian Glencore if economies were to rally ahead of present gloomy consensus. And an investor already long Xstrata presumably shares this rosier macroeconomic view. On this basis, the value of Xstrata's earnings is relatively low, compared to Glencore's, and Xstrata shareholders are contributing more of the combined group's earnings but being allocated less than half the enlarged group. Since it floated last year, Glencore's business has not inspired (its shares have under performed the All Share by 13.2pc). This performance could have been worse if bears had been able to short the stock but it's so tightly held, and so little can be borrowed, that this hasn't happened so its rating has been protected. This is another reason some Xstrata shareholders suspect the deal doesn't reflect the companies' relative values. That said, the timing can play into Glasenberg and Davis's hands. If world recovery is going to enjoy more sustained momentum then there's no better time to combine the businesses and enjoy the upside of Glencore's trading arm with Xstrata's mining business. Also, in an all share deal, the more Xstrata demands of Glencore in way of premium, the greater the threat of simply robbing Peter to pay Paul. But Glencore needs Xstrata more than the other way round and the revenue benefits are for Xstrata to bestow. The majority shareholders in Xstrata have a case for improved terms before they become minority shareholders in an enlarged Glencore. New Corp defines its terms on bribes The FBI's probe into possible violations of America's Foreign Corrupt Practices Act by employees of Rupert Murdoch's media empire is no great surprise. It has long been speculated since UK authorities launched a probe into News International's relationship with the Metropolitan Police here. But, anyone wondering as to its potential significance need only visit Murdoch's own News Corporation website. Here, after a useful definition of "Bribes and Kickbacks" is spelt out in detail what employees can and cannot do when giving anything of value to officials (and the seriousness of the Act's powers) under a section called "Avoiding Corruption and Bribery of Government Officials." The question is how familiar were News Corp's UK staff with this very enlightening information?