Death Star Economics



Heathrow to be renamed China-Qatar International Airport

The US saw 158,000 jobs added in October, undercutting expectations of 162,000. Jobless claims fell by 9,000 from last week. ADP, which releases the numbers, changed its methodology for this report, introducing its new partner company Moody’s Analytics, after having faced criticism regarding the data’s relation to the monthly unemployment report. Said report will get out tomorrow, despite being almost delayed due to the aftermath of hurricane Sandy. This is the second last unemployment data release before falling or not falling off the fiscal cliff in January, as this wonderful infographic illustratesForecasts see unemployment going up to 7.9%.

PMIs were released both in the UK and China. The former missed expectations, hope and dreams of a number closer to the magic 50 (growth benchmark), proof the exiting a recession is not as fun as it sounds. In China on the other hand, fears over the country’s slowdown were eased with stronger growth returning to the manufacturing sector and the October PMI reading being back in the black.

And the timing could hardly be any more ironic. Yesterday, CIC, China Investment Corporation, confirmed to have bought a 10% stake in Heathrow, the third busiest airport in the world. The stake will be acquired from Spanish infrastructure investor Ferrovial, which currently holds 5.7% of Heathrow’s holding company, which will acquire an additional 4.3% to guarantee CIC’s ownership of 10%. It’s busy days at the European Competition Authority, which is still in the middle of reviewing the purchase of 20% of the airport by Qatar’s sovereign wealth fund. Since 2007, Heathrow has been involved in debates as to whether or not the airport would get a necessary third runway.

Otherwise, JP Morgan has filed a case against the supervisor of the Bruno Iksil, the London Whale, in London’s High Court of Justice. Javier Martin-Artajo, who has left the bank along with a number of other people associated with the $5.8bn loss, has not been served yet. Details of the bank’s legal arguments or the amount of money the whale watcher is being sued for are are not publicly available.

And while JP Morgan continues to be under investigation from the FBI concerning the above, Barclays was fined $470m for manipulating California’s electricity market. The fine includes a $35m disgorgement for the period from 2006 to 2008. BP and Deutsche Bank are also under investigation of the Federal Energy Regulatory Commission. Maybe it’s time to manipulate utilities in another state? One that’s less experienced in law suits against big corporations maybe? Just a thought.

So long.


Filed under: news brief, , , , , , , , , , , , , , , ,

2 Responses

  1. princess1960 says:

    hello ..
    unemployment up will see 2013…
    Qatar ..( for some reason) i don’t trust ..i know there have problem too.
    JPMORGAN will continue to have up-down
    i see you are in asia
    have a nice work
    thank you

  2. […] the world economy. In its place, just in time for tomorrow’s elections, is the US fiscal cliff. Or in last year’s press jargon, the end of the Bush-era tax cuts paired with a truckload of […]

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: