Sunday, 20 January 2008
Sunday Business Round-up - linkfest
So may interesting themes this week that the normal 10 link approach is just not going to do it justice.
Reflecting on this, the modern globalised world, with billions more people than just a generation ago, really is more complex and inter-related than ever before. As such, seemingly unrelated and distant events now play on each other and produce strange and unpredictable events. Perhaps this is the real rise of the growth in hedge funds and other such vehicles, gambling on what has become an economic model too complex to understand or predict accurately.
Anyway, the start today has, as usual to be Northern Rock. Yet more twists and turns this week as the Government shows its desperation to get Branson to bail them out. I have severe doubts this is legal and will look up the euro law later this week and do a post. The Government is also looking at its tripartite system, now focusing on the FSA, no doubt some sacrificial victims will be found here rather than in Downing Street.
As if that is not bad enough, then our Great Leader has plenty more bad news in the press. The government finances are in a mess, the currency problem may cloud the way forward to solving the coming recession. Despite this there are pleas to not cut spending and make the situation worse.
So in the real world, other than a massacre on the markets this week, what other news is there? Well commercial property business is in such dire straights that market participants are trying to peddle back away from the cliff edge; And on the UK High Street it was the worst Christmas for 13 years. The stock markets reputation is also in trouble. Northern Wreck has of course helped this no end!
The UK of course is not alone, here are two good stories about problems in Japan and the next disasters to hit Wall Street - more junk bonds...
With all this macroeconomic activity, the pound falling and psychology affecting the market, our companies are well primed for foreign take-over. So what do you know, a long list this week, from Rio Tinto, to BMI and Biffa.
Posted by CityUnslicker