Death Star Economics



Man-flu drives markets

Spain formally requested financial aid to bail out its banking sector. The exact amount, however, remains unknown. All we know is that it needs to be enough (somewhere around €100bn) and signed, sealed, delivered before July 9. Great premises for planning. Moody’s doesn’t care and is expected to downgrade all of Spain’s financial sector within the day.

This week has another EU summit in stock, discussing the usual but possibly leading to a change regarding the use of bailout fund money. Now that Greece finally has a government, the discussions could gain in substance, but oh no, wait a minute! Both the new prime minister and the new minister of finance won’t be able to attend. As Reuters put it:

But Prime Minister Antonis Samaras underwent eye surgery on Saturday and Vassilis Rapanos is in hospital after suffering from nausea before he could be sworn in as finance minister.

I’m loving this. But seriously… What is this, man-flu? The summit is only on Thursday and Friday though, so maybe Greece has manned up by then.

Luckily, someone got it all figured out, with or without Greek relevance attendance: enter George Soros.

My favorite headline of the weekend came out of Brazil, reading “Darth Vader Appears in Brazil Mayor’s Race“. read article

Otherwise, something mildly interesting is happening in the aviation industry. The Irish government is looking to sell its 25% stake in Air Lingus, leading RyanAir and Turkish Airlines to handing in their bids. RyanAir already holds a majority stake in the airline, but is likely to be stopped by European competition authorities, while Turkish couldn’t ever exceed 49% because of EU law. It is expected that a handful of other airlines, such as Abu Dhabi’s Etihad, will bid as well.

Meanwhile, the London Olympics have already left their historic mark: the games, commencing on July 27, are going to be the most over-budget games since the mid-90s. The initial budget started around £3bn; by now it’s at £9.3bn, mostly because of increasing security expenses and lack of interest from private investors. Overall, the Olympics are likely to cost more than twice the initial estimate. Well failed. Beijing, on the other hand, was only 4% over budget in 2008… and they even changed the weather!!

So long.


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One Response

  1. princess1960 says:

    thank you ..
    first SP and GR is the same deep in crisiss and nothink will change because EUZ is deep in crisiss fish smell bad from had .
    G.SOROS is very success full bussiness man and i admire ..
    about TURKISH airline i don’t know to much but my logic say if one company make exspensive comercial ..(bad job managment) and have problem ..ok Turkye is not out the world ..
    weather changet I KNOW chinese (not only) move (sinefa) for helping some (ekdhilosiss)..this is good for moment but for atmosphere is not ..
    Olimpice games ( i like ) if balance sheet come with profit (for sure) EN will stand up very good ..and this help too (sterlina)

    have nice day
    so long even fo me too

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