Death Star Economics



Spain still doing its thing, US economy improving

We’re riding high on the Spanish bailout-request rumors that nobody seems to have grown tired of yet. Highest of all: Spain itself. The country sold a pile of debt as all average yields went downThe FT reports that the country is very very close, closer than ever before, to picking up the phone and calling Brussels to request a bailout. Again. Or still. You know what I mean.

Somewhat unexpectedly, RBS fell into the center of the Libor mess, as the bank suspended Jezri Mohedeen, head of European and Asia-Pacific rates trading. He is the first member of senior management that RBS is sending home to investigate the bank’s involvement in the rate fixing scandal. RBS suspended four traders last year for the same reason. After Barclays was fined £290m as part of the investigation, RBS’ fine is likely to go into the millions as well. This is following the collapse of a deal with Santander regarding the sale of 316 RBS branches.

In other legal news, the American Civil Liberties Union is set to sue Morgan Stanley over selling risky mortgaged to African-American homeowners. According to the NYTimes:

In the lawsuit, filed on Monday, the A.C.L.U. claims that Morgan Stanley is culpable for predatory loans made through the New Century Financial Corporation because the investment bank lent billions of dollars to New Century, a now-defunct subprime lender, and pressured it to make troublesome loans to African-American borrowers who could not afford them.

Ouch, ouch, ouch, so much bad PR…

Meanwhile in California, Marissa Mayer is doing what she was hired for. Over all the discussion as to whether or not she is going to be a horrible mother or CEO or both, Mayer lured Google’s Vice President of Partner Business Solutions into signing a $60m contract with Yahoo. He will start his job as Yahoo’s COO before January 22, 2013. read article

But that’s not the only slap in the face for Google. The FTC, the US Federal Trade Commission, is orchestrating a case against the internet giant, which is edging towards completion as it seems. Allegations regard antitrust violations and complaints about unfair practice towards competitors are piling up in the FTC’s mail room. Google’s latest run-in with the law was a $22.5m settlement payment for bypassing the privacy setting of Safari-using customers. EU regulators aren’t too far off either, pressuring Google over its data protection and privacy policies. read article

Yesterday’s release of US retail figures suggested an upswing in consumer confidence, as the index grew faster than expected. In addition, Citigroup reported better earnings than expected ($1.06 per share, as opposed to $0.99), despite a 88% fall in income, as well as Goldman Sachs, topping estimated earnings per share by $0.57 on an $8.35bn (estimated $7.18bn) overall revenue. All this is supporting the recovery of US stocks, after last weeks abysmal performance. read article

In terms of European dataeurozone inflation was steady at 2.6% between August and September, undercutting the findings of a Reuters economist poll.

Tonight, Mitt Romney and Barack Obama meet again, this time, hopefully, for a better [read actual] debate.

So long.


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One Response

  1. princess1960 says:

    thank you .
    so to day we have differnt news about the bank’s (what ells they is the problem)
    SP …i don’t think they (express) very good to use or better (diakirisune) money ..
    GR is in panic how to find 2 bi (for me is much more ) to close the project plan TROIKA give (you know what mean troika)? three horse..
    SAMARAS thinking all will be ok (so nice) ha..ha ha. unemployment will go 32% next y ..
    inflation in eu ok 2.6 % so unemployment is 12.-13% much more (or we are in traget 2 ) about inflation -unemployment people have accept this situation and continue to spend (this is bad)

    C GROUP .G SACHS MS ALL make the law in world (economice) so we are learnet with good and bad thing’s happening .
    google …don’t worry they have money .———
    Sancsions to IRAN a true they NEEDED )..
    HAVE A NICE DAY for me is not good i just pay 1350 euro for my servis car …(this is bad)

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