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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Globalization, vertical integration and buying commodity firms

Japan is edging towards more QE, as the country’s exports fell most since the earthquake in March 2011. Most of it is attributed to the general performance of the global economy, but also the dispute with China, causing Chinese demand for Japanese goods to fall and factories to close. According to JP Morgan, the dispute will shrink Japan’s Q4 GDP by 0.8%. Besides, the strong yen, makes Japanese goods unattractive for importers. read article

Angela Merkel is getting a taste of her own medicine. She’s having an argument about austerity measures with David Cameron. After Cameron stated that the UK will veto any EU budget proposal that sees spending increases in any shape or form, Merkel, being efficient, sees no point in holding the November budget meetings. The German take on the EU budget is to cap spending at 1% of GDP, around €900bn, for the years to come. read article

In other EU news, tomorrow, the proposal that would impose a 40% female quota in boards of European companies will fail. A number of predominantly liberal politicians have stated to vote against the regulation, 11 out of 27, enough to make it fall through. In the background, the European Parliament is trying to fill a position on the board of the ECB. Prime candidate Yves Mersch seems to bring one major disadvantage: being maleread article

But there really seems to be just one theme today, and that is buying commodities businesses.

In the UK, four of the largest private equity houses in the world, KKR, CVC Capital Partners, Apax and Carlyle are allegedly looking into buying Urenco, a British government-backed provider of nuclear fuel solutions. Urenco was founded by the British, Dutch and German government in the 70s; today, it’s largest shareholders are the British state and two German utility companies.

In AustraliaArcher Daniels Midland, one of the largest processors and traders of agricultural products, has bought 14.5% of GrainCorp, a logistics and storage company that deals with a third of Australia’s wheat grain production, for $2.8bn. According to the UN Food and Agriculture Organization, global agricultural output could grow by 50% until 2050.

Meanwhile, the Canadian government is set to block the acquisition of Progress Energy Resources, Calgary-based owner of gas fields in British Columbia and Alberta, by Petronas of Malasia. The acquisition would be valued at $5.3bn.

And finally, BP sold 12.84% of TNK-BP for $27bn to Rosneft, i.e. the Russian government.

It’s a trend. Clearly.

So long.

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2 Responses

  1. princess1960 says:

    hello and one very nice week for you
    intristing
    first was about JAPAN
    i know the economy is in truble but bank’s is very strong there .
    i trust Japan
    –Merkel sometime she make me nervose. .CAMAERON HAVE RIGHT TO HAVE VETO is in basict to EUZ LAW from the begining when eurozone is create ..she don’t like UK have this power AND with VERY BAD DICTACT (she have to slowdown) the situation in europe is bad because she was not good LEADER…OK …
    GERMANY is not not dictatorship but leadership ..
    UK and others country have problem economic because the euro-zone create ..
    thank you UK IS NOT GR OR SP

    ps SHE play bad role even with SP (SP doesnt have to go IMF) BUT SHE PUSH THAM very simple and logic conclusion …
    thank you for article to day is strong ehhh,…
    so far..

  2. Hi, thanks for sharing.

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