American vision, Global Finances, Vision, World events

Euro parity

PPP: Purchasing Power Parity is a 4 centuries old concept that tries to decide the absolute value of a unit of goods across international boundaries such as bushel of wheat.

At the closing of Wend. 19-May-2010 The euro rose from to $1.2429, up 1.8% from $1.2204 in late North American trading Tuesday and recovering from 0.5% drop intraday, when it fell to a fresh four-year low of $1.2143. Down 14% from beginning of the year.

The Euro moves towards parity according to Kit R. Roane a Fortune magazine contributor Based on IMF estimates of 2008 GDP and purchasing power parity among the various currencies, the euro zone is the second largest economy in the world. There are marked differences between PPP and market exchange rates.
The Euro’s rapid decline could be caused by the €1 trillion bail out of Greece and shoring up of weaker EU economies such as Portugal, Italy and Spain.
Germany’s surprising ban on short selling pressured traders to short the Euro, in a report by William L. Watts of MarketWatch, Steven Barrow, currency strategist at Standard Bank said: “If the market can’t vent its frustration by selling euro-zone government bonds or [credit default swaps], it will sell the euro, no matter that the market already seems very short.”
The ban prohibits market participants from naked short selling of euro-zone government bond markets and from purchasing credit default swaps, or CDSs, on government debt unless they own the underlying bonds.

Some believe that the discrepancies in regional economies and vastly percentages of debt

The ripples from a weak EU economy quickly affects markets in Asia and North America, slowing down the recovery from this recession.

Why are we talking Euros? Because results of this week’s primaries did not capture Wall Street trader’s attention the Euro has. We pour money along Germany to saving Greece while England may not have to, considering that the UK has no stake in the euro the crisis affects the U$A strongly straight into our pocket books.

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American vision, Leadership, World events

E TU BRUTUS ?? !!!

The hyenas in Europe smell the blood of a wounded lion the US of A.

A general review of the latest news condensed for the convinience of the discriminating reader with not enough time this week.

A real test of leadership.

Awaits all American citizens and especialy its Energy Business leaders who will be in difficult positions  as they will manouver energy transactions and face competition in the comming frenzy for Lybian contracts and oil, in very adversorial now openly anti-American territories.

Our Political Leaders will have to summon a backbone balanced with sober thinking in the tribulations ahead.

Those who can effectively unite America for the love  and gratitude felt will become the Grizzly Bears and those who separate it by unifying small fractions on the bases of fear and hate will become coyotes who shall have a popular start and a pyrrhic victory.

The Dagger

With the knife on our back the bleeding begins and it is the time to watch which EU country will try to take the first bite. Will it be Berlusconi, Sarkozy or Zapatero?

The release of mass murderer by Scotland’s Authorities.

Pan Am Flight 103 was Pan American World Airways’ third daily scheduled transatlantic flight from London’s Heathrow Airport to New York’s John F. Kennedy International Airport. On Wednesday 21 December 1988, the Boeing 747-121 named Clipper Maid of the Seas was destroyed by a bomb, killing all 243 passengers and 16 crew members. Eleven people in Lockerbie,  Scotland, were killed when large airplane sections fell down over the town.  As a result, history has named the event as the Lockerbie Bombing.

In 2001, Abdelbaset Ali Mohmed Al Megrahi, a Libyan, was found guilty and convicted of involvement in the murder  caused by the bombing and sentenced to life imprisonment. On 20 August 2009, the Scottish Government released him on “compassionate grounds” to return to Libya, he was diagnosed with terminal prostate cancer and told he had a life expectancy of less than 3 months. Does he really have cancer, It is irrelevant.
The first stab came from the UK. How:

As we can tell by what The WSJ wrote : “Seif al-Islam Gadhafi, meanwhile, owns a $16 million mansion in London’s northern suburbs and maintains close links with Britain’s leading business figures. Earlier this summer he was a guest at the villa owned by the Rothschild banking family on the Greek island of Corfu. Another guest was Lord Peter Mandelson, Britain’s business secretary and a close ally of Prime Minister Gordon Brown.”
Mr. Mandelson is no other than Peter Benjamin Mandelson, Baron Mandelson, PC (Her Majesty’s Most Honourable Privy Council is a body of advisors to the British Sovereign. ) who had to resign twice under Prime Minister Tony Blair under the shadows of impropriety:
First resignation: In December 1998, it was revealed Mandelson had bought a home in Notting Hill in 1996 with the assistance of an interest-free loan of £373,000 from Geoffrey Robinson, a millionaire Labour MP who was also in the Government, but was subject to an inquiry into his business dealings by Mandelson’s department. Although Mandelson alleged he had deliberately not taken part in any decisions relating to Robinson, he knew he should have declared the loan as an interest, and he resigned on 23 December 1998
Second resignation: In January 2001, it was revealed Mandelson had phoned Home Office minister Mike O’Brien on behalf of Srichand Hinduja, an Indian businessman who was seeking British citizenship, and whose family firm was to become the main sponsor of the “Faith Zone” in the Millennium Dome. At the time, Hinduja and his brothers were under investigation by the Indian government for alleged involvement in the Bofors scandal. On 24 January 2001, Mandelson resigned from the Government for a second time insisting he had done nothing wrong.
He made several speeches outlining his strong support for the European Union. He was close to two Shadow Cabinet members, Gordon Brown and Tony Blair, each regarded as potential future leaders
Mandelson became a close ally and trusted adviser to Blair. He was Labour’s election Campaign Director for the 1997 general election, which Labour won by a landslide.
Some early background, He was educated at Hendon County Grammar School. at St Catherine’s College read Philosophy, Politics and Economics and in the late 1970s became director of the British Youth Council thus became a delegate in 1978 to the Soviet-organized World Festival of Youth and Students in Havana, Cuba and several future Labour cabinet colleagues. Elected to Lambeth Borough Council in September 1979 and retired in 1982 not pleased with the course of Labour politics.

Other evidence suggesting the British government, rather than its weaker Scottish partner, was the driving force behind Megrahi’s release has emerged in the form of a letter Ivor Lewis, a junior minister at the British Foreign Office, wrote to Mr. MacAskill on Aug. 3. In that letter, parts of which have been leaked to the British press, Mr. Lewis tells Mr. MacAskill that there is no legal reason not to accede to Libya’s request to transfer Megrahi into its custody under the terms of an agreement reached between Mr. Blair and Gadhafi senior in 2004 to strengthen U.K.-Libyan diplomatic ties. This agreement was negotiated in the wake of the historic nuclear deal.
The Stabbing dagger was last seen in the hands of Italy.
Libya is the biggest provider of crude oil to Italy by far and its sovereign wealth fund may yet prop up some large Italian companies, but Silvio Berlusconi is discovering – like Gordon Brown of the UK – that to deal with Muammar Gadhafi can be a double-edged sword.
When he flies to Tripoli on Sunday, the Italian prime minister will be the first western head of government to greet the Libyan leader since the homecoming of the convicted Lockerbie bomber which has sparked a furore in the US and the UK. Oil and business ties are expected to top the agenda when Mr Berlusconi joins Colonel Gadhafi to celebrate the accord they forged a year ago under which Italy said it would pay $5bn (€3.5bn, £3bn) during 25 years as reparations for its colonial rule, which lasted from 1911 to 1943.
In return, Libya made a deal about boat people leaving its shores and is to give Italian companies priority in infrastructure projects, such as Finmeccanica’s aerospace(see stock below) venture with a Libyan fund and its award last month of a €541m railway signals contract. Libya’s sovereign wealth funds seek stakes in Italian companies, including a possible 10 per cent holding in Eni, the energy company controlled by the Italian government.
Before he flies to Libya this evening, Mr Berlusconi has a related but potentially more important meeting closer to home, with Cardinal Tarcisio Bertone, the Vatican’s secretary of state.
Is reminds me of the movie “The Godfather” when Michael is at the Cathedral baptizing his son while he has his men whacking the competition.

Finmeccanica FNC:MIL
11.36EUR   +0.04 +0.35%    1.70m 8.37        -16.98
Last Price Today’s Change   Shares Traded   52 Week Range
Latest Finmeccanica FNC:MIL stock quote

Enersis S.A. (ADR) (Public, NYSE:ENI)
17.91             -0.13‎           (-0.72%‎)
Latest ENI stock quote
From their official website: Finmeccanica and Libyan Investment Authority sign a Memorandum of Understanding for a strategic cooperation in Africa and the Middle EastOriente

Finmeccanica, the Italian leading aerospace, defence and security company and the Libyan Investment Authority (“LIA”), the Libyan sovereign wealth fund, and Libya Africa Investment Portfolio (“LAP”), an Investment Fund owned by LIA, share the view that Libya and the Middle East and Africa countries will offer, in the near future, significant investment opportunities in a broad range of industrial sectors in which Finmeccanica is present at a global level and they intend to leverage on their joint capabilities to access new markets working with local customers and partners.

In this context, Finmeccanica, LIA and LAP have today signed a Memorandum of Understanding (MoU) for the development of a strategic cooperation in Libya and other countries in the Middle East and Africa regions. Under this MoU investment opportunities will be pursued in the aerospace, electronics, transportation and energy sectors for civil applications.

Japan’s dilema

The WSJ page A16 World News of Aug-27-09 dedicates a 1/2 page to  what the article’s heading calls: Likely Japan Leaders to Focus on Asian Ties

Focusing  on Yukio Hatomaya of the opposition Democratic Party and the meaning of his comment on America: ” The era of U.S. led globalism is comming to an end and we are moving away from a unipolar world toward an era of multipolarity”

This from the man that may become Japan’s Prime Minister.

wow it reminds you of that song “where have all the cowboys gone” because we haven’t seen any since Ronald Reagan.

—oo0oo—

Lighter side

Nobel Economics

“Economics is the only field in which two people can share a Nobel Prize for saying opposing things.” Specifically, Myrdal and Hayek shared one.

American vision, Bailouts, Citizen responsibilty, Learn, poor leadership, World events

Detroit Auto makers can’t win even with Goverment baby-sitting

We as citizens need to learn how to identify winners in business, the companies, the technologies and the industries’ consistent performers.

A newspaper headline reports the sad story that clearly reveals signs of a pathological habit of losing as a group. Detroit and Michigan as a general population has criticized Government intervention and crusaded the values of the free enterprise system.

What is becoming clear is that they are not our best American warriors to win this economic war since their Free market skills lag far behind their political talk.

We need to focus on the many successful companies, smaller and less talked about but the hugely successful businesses such as Microwave Data Systems of Rochester, New York. Their success is not in fame but $$ and the professionalism developed by their workforce

Toyota Tops List of $$-for-Clunkers (clik 4more)

(NYT). “While American government officials hailed the month long program, which ended this week, as an overall stimulus to the economy, the biggest winner was Toyota, which accounted for 19 percent of all sales and had two of the top three best-selling models. The cash-for-clunkers program turned out to be a boon for Asian automakers and the small cars they specialize in.

The Transportation Department said Wednesday that participants in the clunkers program bought 690,000 new vehicles. About $2.9 billion of the program’s $3 billion was distributed in government vouchers, which were worth $3,500 to $4,500 toward new-car purchases.

Detroit’s three automakers — General Motors, Ford and Chrysler — accounted for 38.6 percent of the vehicles sold. That figure is substantially less than the 45 percent combined market share that the Detroit companies posted in the first seven months of the year.”

Clearly is not that they do not want to win but that they don’t know how in this new world that clearly was created with the help of greedy CEO’s.

America, greedy CEO’s do not represent nor portrait the American Free Enterprise System nor American Capitalism because they do not capitalize companies in America.

—oo000—

CHANGE=Δ

Subject Change %Change Value
DJI 4.23 +0.04% 9,543.52
NASDAQ 0.20 +0.01% 2,024.43
S&P 500 0.12 +0.01% 1,028.12
OIL -0.21 -0.29% $71.22
Gold 0.30 0.03% 945.50
Nat Gas -0.06 -2.23% 2.84
US $ 0.0004 +0.0006% 1.00
CSCO -0.07 -0.32% 22.0
YHOO -0.14 -0.93% 14.93
GOOG -3.37 -.071% 468.00
AAPL -1.99 -1.17% 167.41
MSFT -0.09 -0.37% 24.55

On the Lighter side

Once upon a time at a conference of Economists The Critical Question was asked and the results were typical it is said
Q: How many conservative economists does it take to change a light bulb?
Answer1: None. The darkness will cause the light bulb to change by itself.
A2: None. If it really needed changing, market forces would have caused it to happen.
A3: None. If the government would just leave it alone, it would screw itself in.
A4. None. “There is no need to change the light bulb. All the conditions for illumination are in place.
A5. None, because, look! It’s getting brighter! It’s definitely getting brighter !!!
A5. None; they’re all waiting for the unseen hand of the market to correct the lighting disequilibrium.

Learn, World events

Decide to learn

Google (goog) closed at  $396.63   -12.98 (-3.17%) it is easy to predict that this will close above $400.00 Thursday JUL 9, considering that it closed around $410.00 Monday JUL-6 after the anouncement that it will develop a PC Operating System. My guess is that the ensuing war with Microsoft (msft) willl produce some volatility in GOOG stock between 405 and  $420.00 for next 3 months as long as Googles anti-trust lawsuits remains NOT-Negative to Google. That is my prediction as a newbie, will see how it holds up.

Check  older posts:

Twitter: 4Sale: back 2Old failed ideas?

Previously Google was:

$711.25 on Nov 2-2007

$585.75 on May 30-2008

$262.43 on Nov-21-2008

From Bloomberg.com/

COMMODITY FUTURES

VALUE CHANGE % CHANGE
Oil 62.41 -0.52 -0.83
Gold 925.10 -4.00 -0.43
Natural Gas 3.41 -0.02 -0.67

EQUITY INDEXES

VALUE CHANGE % CHANGE
S&P 500 881.03 -17.69 -1.97
NASDAQ 1,746.17 -41.23 -2.31
Russell 2000 484.25 -9.78 -1.98
S&P/TSX Comp 9,844.35 -183.08 -1.83
Mexico Bolsa 23,359.94 -382.55 -1.61
Brazil Bovespa 49,456.70 -1,165.77 -2.30

EQUITY INDEXES

VALUE CHANGE % CHANGE
Topix 888.54 -20.59 -2.26
Hang Seng 17,721.07 -141.20 -0.79
Singapore Straits Times 2,257.74 -14.52 -0.64
S&P/ASX 3,767.90 1.00 0.03

Todays Term:/Word:

What Does A-Shares Mean?
Shares in mainland China-based companies that trade on Chinese stock exchanges such as the Shanghai Stock Exchange and the Shenzhen Stock Exchange. A-shares are generally only available for purchase by mainland citizens; foreign investment is only allowed through a tightly-regulated structure known as the Qualified Foreign Institutional Investor (QFII) system.

Typically, the most preferred tier of classified stock, offeringmore voting rights than Class B Shares. Class A shares are designed to insulate management from the short-termswings of Wall Street, by allowing those in management tocontrol a small amount of the equity of the company but still maintain voting power. These types of shares are notsold to the public and cannot be traded, which supporters of the dual-share system say allows management to focus onlong-term goals. In some cases, a company will designate shares to be Class A shares even though they have less voting rights, and designate the shares with more voting rights to be Class B shares; the decision is left up to theindividual company.

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American vision, Bailouts, World events

Saturn probable buyers

Please hover your mouse over the words and click to unfold detailed information, this method of embedding data allows for clarity and simplicity.
EQUITY INDEXES

VALUE CHANGE % CHANGE
DJStoxx 600 207.57 -4.18 -1.97
FTSE 100 4,345.47 -122.94 -2.75
DAX 30 4,900.67 -138.27 -2.74
CAC 40 3,217.41 -85.96 -2.60
S&P/MIB 19,883.00 -642.00 -3.13

Left to Buy GM’s Saturn: Penske, Black OakPartners, LLC Maybe Magna.

Why has Saturn been a troubled brand for GM? Explain to me how can the largest car maker in the world fail at selling a car at a profit. Saturn is the contender to the very profitable market of Japanese small and medium size cars especially when they are reasonably liked. There can be only one answer, GM did not want to succeed. Crazy? When you look at the company’s struggles they were mostly labor hardships not technological challenges, their foe was the unions not the limits of gas mileage, better metals or lower prices like the challenges of Intel, Apple or Sun.

GM is a company whose leadership has had one strategy: to manufacture abroad the US. The Hummer was built in South Africa, Saab in Sweden with plans to build a plant in Russia. All of that is past because we have new players.

Penske (PAG:US Penske Auto Group Inc ) Operates franchised automobile dealerships throughout the United States and the U.K.

Closed: 11.55 fell: -0.63 / -5.17% May 21 /Dividend Yield:  3.12%

compared to GM:

Closed: 1.92 rose: +0.47 / +32.41%   /Dividend Yield:  N/A

Magna ( MGA:US Magna International Inc ) Designs, develops, and manufactures automotive systems, assemblies and components, and engineers and assembles complete vehicles. The Company sells its products primarily to OEM.

Closed:  32.72 Rose:  +0.59 / +1.84% May 2    / Dividend Yield: 2.20%

Watch the price of Gold! whatz Up?

COMMODITY FUTURES

VALUE CHANGE % CHANGE
Oil 61.66 0.61 1.00
Gold 952.30 1.10 0.12
Natural Gas 3.60 -0.00 -0.08

American vision, Bailouts, Dilemas, understanding economic events, World events

Bail-inn 3d world countries or the USA

Markets

FTSE 100 3,893 -0.19% € per £ 1.07 +0.13%
DOW 7,750 0.00% $ per £ 1.46 +0.06%
HANG SENG 14,109 +3.57% ¥ per $ 98.36 +0.78%
DAX 4,238 +0.34% WTI Crude 53.61 +1.59%

It has been a while since my last post, it was difficult to write about what I saw coming down the pike without sounding sadly without any credible case. Now there is enough out there for the public to be willing to consider the drastic change in life styles and mind sets that will be needed to survive without becoming just a barely better economy than Mexico.

The fast pace in which the corruption of values and ethical standards from a critical mass of our Financial and Political leaders will require a strong public willing and ready to learn about the subject of economics and finance it is our responsibility if we do not pull ourselves by the bootstraps no one else will we the Joe Public types not Mr. Politician nor Mr. CEO

“Roughly once year the IMF, US Secretary and sometimes finance ministers of G7 countries get a phone call from the finance minister of a large emerging-market economy: …the country is rapidly running out of foreign reserves, lost access to capital markets, and that perhaps even lost confidence of its citizens. Without a large rescue loan, he country will be forced to devalue its currency and.”  This is how Mr. Roubini starts the introduction of his book “Bailout or bail-ins” co-authored with Brad Setser.

Eerily familiar, what sounds like corrupt dictators of a struggling African or Central American nation?

FT.com/ reports:  AIG paid more than $40m in controversial retention bonuses to staff at its troubled financial unit in December, three months ahead of schedule, according to the resignation letter of an executive at the insurance group.

News of the decision to pay bonuses of $165m to staff at AIG sparked political outrage and protests in the US Congress, after the insurer was bailed out with $173bn of public money last year. Before the publication of the letter, momentum on draconian legislation to claw back bonuses had begun to slow.

Jake DeSantis, a manager in AIG’s Financial Products unit, said AIG “accelerated by three months [the payment of] more than a quarter” of the $165m of retention bonuses due to the division’s employees.

The President of the USA will arrive in Europe for a summit hosted by British Prime Minister Gordon Brown, while ”

European Union politician on Wednesday slammed U.S. plans to spend its way out of recession as “a way to hell.”

Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, told the European Parliament that President Barack Obama’s massive stimulus package and banking bailout “will undermine the stability of the global financial market.”  Reported by Fox News

Will the strongest currencies dominate what may become the UN of finance and will that nation be China? Just consider:

China’s central bank yesterday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”. Reported by FT.com

But no matter what we will make it through, believe that work hard like you mean it, have a good day no matter what

RedSerpent

American vision, World events

Hello, a new world perspective.

Peace and Grace 2 u, to refresh your mind in this times.

Welcome to RedSerpent this is a  WordPress.com blog. Not a conservative view and not a liberal view. A view not in full flight from reality. We are from the common sort of people that work for a living and work for a clear view of the world unfettered by news releases yet not ignorant of them.

Connecting the dots through time, aware of history yet not slave/blind to it. We listen to learn and continue to learn to listen.

Hope that this blog serves you to think clearly and  bring you serenity, RedSerpent