Death Star Economics



Shakespeare was a central banker/ Greg Smith is back

After the German ESM court ruling, adding €190bn from Germany to the fund, lifted everything in Europe, and Asian shares couldn’t decide whether to rise or fall upon Apple’s iPhone 5 presentation (kind of cool that it’s all black, by the way), the rest of the world is waiting to hear from the FOMC meeting.

So QE or no QE, that is the question. Interestingly, the following lines of the Shakespeare quote also kind of apply to monetary policy:

Whether ’tis nobler in the mind to suffer

The slings and arrows of outrageous fortune

Or to take arms against a sea of troubles,

And by opposing end them? To die: to sleep […]

Well then.

Reuters’ economist poll shows a 60% chance of QE3. So far, the financial crisis and the monetary policies it forced the Fed into, increased the central bank’s balance sheet to $2.9tn. But some actually disagree, and say the question isn’t “whether”, but rather “how” the Fed is going to do it. From 12.30pm EST onwards, there will be interest rates, economic projections and Ben Bernanke’s long-awaited press conference.

More clarity in the Dutch election results (map): with 26.6% for the incumbent VVD (People’s Party for Freedom and Democracy) and 24.8% for the PvdA (labor), the Netherlands has avoided an extremist and eurosceptic government once more. Congratulations. A liberal-labor coalition would form a majority government, which is definitely progress after the last coalition consisted of five different parties.

EADS, the parent company of Airbus, wants to merge with BAE Systems, the British defence, security and aerospace company and largest contractor of its kind in Europe. Just like Boeing does in the US, the new company would combine military and commercial operations. Under the current proposition, EADS would hold 60%, while BAE would hold the remaining 40% of the company that is estimated to have a joint market cap of €38bn (in comparison, Boeing stands at €41bn). A decade has passed since a merger was first spoken of. The Handelsblatt calls the deal an “industrial-policy breakthrough”, which wouldn’t have been possible without a European Union. read article

In the case of Heineken‘s attempt to acquire full control of Singapore beverage conglomerate Fraser&Neave, a new player has entered the stage. Charoen Sirivadhanabhakdi, Thai billionaire and owner of Thai Beverage, F&N’s largest single shareholder since a couple of weeks, has made an $7.2bn cash bid for the company. read article

Also in the news: Greg Smith – again. After publicly resigning from his position in Goldman Sachs‘ London office on the Op-Ed page of the New York Times in March, publishers were throwing themselves at him. This year, we can give our loved ones his book for Christmas. On October 22, Why I Left Goldman Sachs is coming to a book store near you. Smith’s advance, in a time where book advances rarely make 6-figures, is rumored to have been $1.5mread article

In local news, Rafiq/c/k HaririLebanese Prime Minister until 2004, has put his Hyde Park mansion up for sale. For £300m, more than twice the original purchasing price of £140m. The sale would be highest valued housing transaction England has ever seen. Wild guess on the nationality of the buyer: Qatari or French, there’s a pattern.

So long.


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One Response

  1. princess1960 says:

    a littel bit confuese to day..Bernanke make one short analysis ..
    APPL the same gadget with ligo diffrent changes ..and others pay the low cost to iphone4s ..this is the businesis low price the last producte and highe price a new one and this compere the small or good profit.
    Germany where go to find money to keep the euz up?or together because we are ready needed 20tri.. and she have just 2t 9i am not wrong ..
    even you don’t believe all this EH??? why this tactice to keep the people under the sleepdrog..why noone broke this masck ..why this poltican (for me is not) play with the life others people who is not respolnibility for all this?why this” politican” doesn’t cut to him/her self medicine electricity,even the bread ,,to see how easy is to live in 70-60 years old who working all the life for small days reast untill they die?this politican is not GOD is a veryyyy small people bery small ,,all lier…
    thank you my comment is very very honest because i see to day one old man and he wanted just 2 eu to take bread is this the world we wanted 2012 even earth have change SO WHAT HAPPING WITH THIS POLITICAL..COSMO?

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