Death Star Economics



All talk, no results, but at least Glencore is happy.

If things continue like this, I’m going to start making news up. I hear it works for The Sun.

Japan’s exports to China fell by 12% in October, amounting to JPY948bn ($12bn) or the largest monthly trade deficit ever, in the hangover since the dispute about the East China Sea has re-arisen. read article

Meanwhile in the US, Ben Bernanke held a press conference reiterating every apocalyptic comment about the fiscal cliff and threatening recession in case of insufficient government action. Talks between the White House and Congress have kicked off this week, but it’s not going well so far.  read article

In Greek news, the Eurogroup of finance ministers failed to strike a deal on how to reduce Greece’ debt. After 11 hours of back and forth, the meeting was broken up, to be continued on Monday of next week. Allegedlya document was circulated at the meeting, now in the hands of Reuters, which proposed a haircut for official bondholders or a two-year extension for the 120% debt-to-GDP ratio. The former goes against Germany’s wishes, the latter against those of the IMF. Nothing is solved and tomorrow’s summit will be a disaster. read article

Twinkies and Wonder Bread parent company Hostess, which had struggled over the past couple of months,

will continue with the company’s liquidation, after it failed to find an agreement with the bakery workers union. Hostess had filed for bankruptcy in January, when the company had around $860m debt, and announced to close down operations on Tuesday. The private equity vultures are circling… (Hello, Sun Capital Partners.) read article

In other company’s news, the merger of Glencore and Xstrata has now been passed on to European antitrust authorities who are expected to approve the deal tomorrow, almost nine months after merger negotiations started. Besides the EU, China and South Africa also have to approve the proposed transaction, which would create the largest natural resource conglomerate in the world. read article

So long.


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One Response

  1. princess1960 says:

    thank you comment better

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