In Massachusetts by-election winner Republican got 49% against 47% of his Democrat opponent and the world came crashing down last week. Obama announced his “Volcker Rule,” vowing to take Wall St head on, and markets plunged real heavy. The man on the street was vastly amused because he has written off the hope that the new Prez offered in 2008 and would now exercise his mind only in 2012. The rest of the world remained passive because one needs to have a BofA or Citi before one can think of forcing it to downsize! Who says economics has become more important than politics? Even Warren Buffett is demanding that assets of CEOs (and their spouses) of failed companies should be forfeited! Who knows, in 2012, he may consider being the Prez; if Berlusconi and Sarkozy can head governments, why not Buffett?
Volatility has declined significantly and confidence in the US and the dollar has apparently returned with a vengeance but basic figures cannot really be ignored. 30-year mortgage rates are now below 5%, between June 2008 and Sep 2009, outstanding construction loans plunged from 630 to $490 bn and gasoline demand is failing to perk up despite sheets of snow all over the country. US commercial mortgage-backed securities sales plunged from $237 bn in 2007 to $1.4 bn last year as commercial real estate prices in Dec 2009 were 43% below Oct 2007.
Dividends are once again being paid out of new (junk) bond issues as the so-called high-yield bonds returned 57% last year, and hedge funds are busy designing innovative products that can be sold to pension funds with or without inducements for managers. Citi expects a 17% increase in global M&A activity this year.
Never mind how different economies are performing, or are likely to perform. Obama’s fat cats are merrily continuing with carry trade, which has the ability to bugger the best and make the worst shine the most. Meanwhile, US is slapping a 10% tax on 20,000 indoor tanning salons to raise $2.7 bn in revenue.
China has reported GDP of USD 4.9 tn for 2009, and is likely to overtake Japan as the world’s second largest economy in 2010. Rio Tinto’s 49% jump in iron ore output in Q4-2009 is being attributed to Chinese demand. Analysts are vying with each other in doling out advice on hot money, inflation and bubbles and what not but the juggernaut seems to be rolling on. With retail sales still at around USD 2 tn (40% of 5), China has a long way to go. What others need to watch out for is prices of basics like oil and metals.
Greece, Argentina, Russia, Ireland, Portugal, Italy, Spain and Mexico are being viewed as risky economies. UK continues to worry about London’s status as a global financial centre, particularly after peak tax rate rises from 40 to 50% in April. Japan’s spending on plant and equipment is down about 25-30% and prospects of most east European economies are being viewed as lacklustre.
Spain has successfully reduced the number of illegal migrants from Africa,
Chile has elected conservative billionaire Pinera as its president, Hong Kong has been declared as the world’s freest economy for 16th consecutive year even as China has dropped to 140th, and its Disneyland appears to be growing steadily. Oil-rich Venezuela is facing a steep power crisis because of a severe drought but is continuing with its anti-West stance – French-Colombian supermarket chain Exito has been taken over by the government.
Singapore’s export shipments declined 11% last year, Kuwait is facing a popular demand for waiver of all interest on outstanding consumer loans. Icelandic banks operating in UK and Netherlands failed and the two governments provided money for repayment of deposits of their respective citizens. Now UK and Netherlands want Iceland govt to pay this money and the people of Iceland are refusing to approve this payment.
Japan Airlines finally failed to get a fifth bailout and filed for bankruptcy last week, making bigwigs like Toyota, Honda and Hitachi realize that shortfalls in pension plans can cause bankruptcy. JAL’s market value is about $ 150 mn or one standard passenger airplane.
Kraft finally got its hands on Cadbury, after raising bid to $19.6 bn, Ebay expects revenue of about $9 bn this year and its PayPal unit expects total payment volume of over $20 bn this year. Nestle is due to begin selling nutritional drinks for the elderly in Switzerland, Toyota expects to double its output of hybrid cars to a million units by 2011, Travelport is selling shares worth $2 bn to cut debt and Apple is serious about replacing search software of Google with that of Microsoft. Target is preparing to open stores in Canada and LatAm by 2013.
A trim and a shampoo for a dog costs over $100 in Japan, where annual spending on pets is $10 bn; in UK, sales of dog coats are up 70% because of the weather. After Russia, UK too has started cracking down on excessive drinking; measures include ban on speed drinking and unlimited drinking promotions.
A survey says young people in US are spending more than 53 hours a week on the net and a US firm is seeking patent for a new exclamation mark it has designed. Germany will soon have its first Muslim bank, with ten branches, which will charge a fee, instead of interest, for loans. Germany’s population decreased by about a quarter of a million in 2009. Italians’ wagers rose 13% to USD 78 bn last year. Americans have stopped splurging on bottled water; retail price has dropped from 7 to 2.5 USD per 12 liters.
Leave your portfolio in His hands and go to Haiti with half-a-dozen suitcases full of life saving drugs and inexpensive clothing, and a few cartons of packaged food. Consider it a spiritual investment that needs no hedging; the peace the trip would yield will be more than what any junk bond returned last year.
xxxxx
Showing posts with label berlusconi. Show all posts
Showing posts with label berlusconi. Show all posts
Politics suddenly shouted last week to make its presence felt in a world obsessed with mundane money matters. Nobel Peace Prize for Obama evoked disbelief, derision and delight in about equal measure but curiosity was curiously missing; who is trying to nudge Obama in what direction, and whether the award is likely to deliver the agenda are questions not being even asked.
While the US is struggling to come up with a medicare plan acceptable to the majority, and is even contemplating taxes on expensive (Cadillac) medicare plans bought by the rich, reports of medicare fraud having become more profitable than drugs smuggling have come in. After having successfully sent the world scurrying for swine flu vaccines and antibodies, the pharma industry is now offering a vaccine that could help cocaine addicts.
Realising the enormity of ageing of its population, Japan is considering payments of $300 a month for 15 years to parents of newly borns, in addition to a lump sum payment of $6,000 on birth, day care subsidies and waiver of tuition fees. In all, a stimulus package of about $71 bn a year. This, despite the country having one of the lowest percentage of working mothers in the developed world.
Excessive volatility has made it difficult for those who trade in real goods and services to carry on their businesses, one example being the US cotton trade, where four traders (Dreyfus, Olam, Noble and Cargill) now control over one half of trade because too many have folded up.
US tax revenue declined 25% in the year that ended 30 Sep and in Euro terms, its per capita income is down 25%, compared to the year 2000. Trade deficits of a large number of developing countries are declining because they are importing less. Hit by recession, Italy has come up with its third tax amnesty scheme in the current century, expecting repatriation of over $120 bn of slush funds held abroad by its businessmen. Protesting against low milk prices that might cost EU dairy industry Euro 14 bn in 2009, farmers blockaded streets of Brussels with tractors and cattle last week, when some poured milks on police personnel.
However, China and Japan continue to record surplus in their external trade and now even Hong Kong has forex reserves almost equal to India which is, of course, in addition to China’s massive hoard of over two trillion.
Globalization continues to change plans and perceptions in amazing ways. While China appears to have reconciled itself to the length of the road to making its currency globally acceptable, Japan is talking of an Asian version of the EU. Elsewhere, after the US could no longer ignore its environmental responsibilities, its companies are talking of fulfilling their obligations by preventing deforestation in far away Africa, which they think will be a cheaper option! South Africa is offering its farmers land in Congo, Zambia and Sudan.
Newspaper advertising plunged 29% in Q2 and even Internet advertising in the US dipped 5% to $10.9 bn. Google ad sales were, however, up 4% in H1. YouTube, which it bought in 2006 for $1.65 bn, now has a billion hits a day. Apple has silently bought a small mapping firm because it doesn’t want to keep using Google maps. Dell is closing its plant in N.C. and the state is asking what about the incentives given barely a few years ago?
Julius Baer is buying ING’s Swiss private banking business for $500 mn, Banco Santander (Spain) has raised $8 bn from an IPO by its Brazilian subsidiary, and EFG of Switzerland is expanding Asia-Pacific operations because only a tenth of the region’s millionaires are clients of private banks. LBBW, a German firm, has emerged as the best currency strategist, beating the world’s largest currency trader Deutsche Bank.
Anheuser-Busch (Belgian brewer) is selling its theme parks business to Blackstone for $2.7 bn. PepsiCo soft drinks sales in the Americas dipped 6% but grew 9% globally in Q2, though snacks sales grew all over. Wal-Mart has started converting Tamiflu capsules into liquid form so kids and the elderly can take it easy. Kimberly-Clark of Kleenex and Huggies fame has bought the drugs business of I-Flow.
While the auto industry is suffering the consequences of quick decisions and quicker changes in models and designs, GM is trying to change its corporate culture to ensure even quicker decisions and enforce accountability at the same time. GM says it has sold its Hummer division to Tengzhong of China while the Chinese govt says no application for approval has been received. Ford’s dilemma about Volvo, perhaps the best bus-maker of the world, remains unresolved, though Geely of China and a US consortium have shown interest.
Oil and gas firm ConocoPhillips says it would sell assets worth $10 bn over the next two years and shall cut capital spending to pare debt, Monsanto continues to face falling sales of seeds and agri-chemicals, and DuPont is gaining market share in corn seeds, of course genetically modified. Alcoa has cut 19,000 jobs since June of 2008 and has cut costs by nearly $2 bn.
Versace has closed all its stores in Japan, Brigitte, Hamburg fashion magazine, has decided to replace professional models with its own staff members, luxury retailers Saks and Neiman Marcus continue to lose money, and profits of Levi Strauss plunged 41% in Q3, though sales in China and India are doing well. In India it is selling jeans on 3 EMIs!
Merrill Lynch says oil will rise above $100 next year and Italy’s Silvio Berlusconi says he is the best prime minister ever, the reason why he has had to spend $300 mn in legal fees since entering politics and that doesn’t include the cost of the divorce settlement he will have to make in the near future. What should ordinary folks do? Buy a “Primo Puel” for a companion, like a million Japanese have, and experience the man-made doll respond to sight and sound.
xxxxx
While the US is struggling to come up with a medicare plan acceptable to the majority, and is even contemplating taxes on expensive (Cadillac) medicare plans bought by the rich, reports of medicare fraud having become more profitable than drugs smuggling have come in. After having successfully sent the world scurrying for swine flu vaccines and antibodies, the pharma industry is now offering a vaccine that could help cocaine addicts.
Realising the enormity of ageing of its population, Japan is considering payments of $300 a month for 15 years to parents of newly borns, in addition to a lump sum payment of $6,000 on birth, day care subsidies and waiver of tuition fees. In all, a stimulus package of about $71 bn a year. This, despite the country having one of the lowest percentage of working mothers in the developed world.
Excessive volatility has made it difficult for those who trade in real goods and services to carry on their businesses, one example being the US cotton trade, where four traders (Dreyfus, Olam, Noble and Cargill) now control over one half of trade because too many have folded up.
US tax revenue declined 25% in the year that ended 30 Sep and in Euro terms, its per capita income is down 25%, compared to the year 2000. Trade deficits of a large number of developing countries are declining because they are importing less. Hit by recession, Italy has come up with its third tax amnesty scheme in the current century, expecting repatriation of over $120 bn of slush funds held abroad by its businessmen. Protesting against low milk prices that might cost EU dairy industry Euro 14 bn in 2009, farmers blockaded streets of Brussels with tractors and cattle last week, when some poured milks on police personnel.
However, China and Japan continue to record surplus in their external trade and now even Hong Kong has forex reserves almost equal to India which is, of course, in addition to China’s massive hoard of over two trillion.
Globalization continues to change plans and perceptions in amazing ways. While China appears to have reconciled itself to the length of the road to making its currency globally acceptable, Japan is talking of an Asian version of the EU. Elsewhere, after the US could no longer ignore its environmental responsibilities, its companies are talking of fulfilling their obligations by preventing deforestation in far away Africa, which they think will be a cheaper option! South Africa is offering its farmers land in Congo, Zambia and Sudan.
Newspaper advertising plunged 29% in Q2 and even Internet advertising in the US dipped 5% to $10.9 bn. Google ad sales were, however, up 4% in H1. YouTube, which it bought in 2006 for $1.65 bn, now has a billion hits a day. Apple has silently bought a small mapping firm because it doesn’t want to keep using Google maps. Dell is closing its plant in N.C. and the state is asking what about the incentives given barely a few years ago?
Julius Baer is buying ING’s Swiss private banking business for $500 mn, Banco Santander (Spain) has raised $8 bn from an IPO by its Brazilian subsidiary, and EFG of Switzerland is expanding Asia-Pacific operations because only a tenth of the region’s millionaires are clients of private banks. LBBW, a German firm, has emerged as the best currency strategist, beating the world’s largest currency trader Deutsche Bank.
Anheuser-Busch (Belgian brewer) is selling its theme parks business to Blackstone for $2.7 bn. PepsiCo soft drinks sales in the Americas dipped 6% but grew 9% globally in Q2, though snacks sales grew all over. Wal-Mart has started converting Tamiflu capsules into liquid form so kids and the elderly can take it easy. Kimberly-Clark of Kleenex and Huggies fame has bought the drugs business of I-Flow.
While the auto industry is suffering the consequences of quick decisions and quicker changes in models and designs, GM is trying to change its corporate culture to ensure even quicker decisions and enforce accountability at the same time. GM says it has sold its Hummer division to Tengzhong of China while the Chinese govt says no application for approval has been received. Ford’s dilemma about Volvo, perhaps the best bus-maker of the world, remains unresolved, though Geely of China and a US consortium have shown interest.
Oil and gas firm ConocoPhillips says it would sell assets worth $10 bn over the next two years and shall cut capital spending to pare debt, Monsanto continues to face falling sales of seeds and agri-chemicals, and DuPont is gaining market share in corn seeds, of course genetically modified. Alcoa has cut 19,000 jobs since June of 2008 and has cut costs by nearly $2 bn.
Versace has closed all its stores in Japan, Brigitte, Hamburg fashion magazine, has decided to replace professional models with its own staff members, luxury retailers Saks and Neiman Marcus continue to lose money, and profits of Levi Strauss plunged 41% in Q3, though sales in China and India are doing well. In India it is selling jeans on 3 EMIs!
Merrill Lynch says oil will rise above $100 next year and Italy’s Silvio Berlusconi says he is the best prime minister ever, the reason why he has had to spend $300 mn in legal fees since entering politics and that doesn’t include the cost of the divorce settlement he will have to make in the near future. What should ordinary folks do? Buy a “Primo Puel” for a companion, like a million Japanese have, and experience the man-made doll respond to sight and sound.
xxxxx
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