China is dramatically increasing its capabilities both in cyberware and cybertheft. http://www.ft.com/cms/s/0/33dc83e4-c800-11e0-9501-00144feabdc0.html
Category archives: Problems
Renminbi begins its rise against the dollar
For the record, the renminbi rose 0.6 percent against the dollar today, the largest rise since 2005. Chinese authorities are believed to have engineered the rise in response to growing criticism from the US, where critics believe it is undervalued by as much as 40%.
Market listings being delayed
Facebook, Groupon, Zygna, Sophos and others have delayed market listings in the face of weak markets. http://www.ft.com/cms/s/0/ad023e9e-f041-11e0-96d2-00144feab49a.html
Creating stability can be difficult — but worthwhile
The Twin Towers attack of 9/11 led to a downturn in demand that led to a consolidation in the manufacturers of the nuts bolts rivets and washers used to hold aeroplanes together. The uncertainty in demand then led to shortages, which became a serious problem for Boeing as it attempted to develop the Dreamliner 787.
Iron ore prices hold
Large institutional investors believe that iron ore prices are unlikely to drop, even if the world enters a double-dip recession. The London Metals Index is down just over 20% this year, but iron ore has fallen less than one percent. In part, this is because the market in iron ore derivatives is relatively young (just over …
“Oil surges on hopes of bank rescue deal”
The volatility we have come to expect in oil showed its face again as oil closed up around 8%-10% on the week on news of a nearing deal on the Eurozone crisis. We can expect this to continue. High oil prices will dampen the economy, which drive prices down again, so will grow the economy …
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Cargill profits down two-thirds
Cargill is the world’s largest agricultural trader, so you might expect them to be able to weather the financial crisis. Especially given the record prices being experienced in beef and corn. Profits, however, are down 66% on last year. Despite their “advantage in trading because they are involved in the physical markets”, they were wrong-footed …
Even billionaires can struggle
It is not only low income families who are struggling at the moment — billionaires have their problems too. The Bakrie family in Indonesia has a track record of buying companies, mortgaging them and using the new capital to buy more businesses. Its debt now stands at more than $3bn and the family has interests …
Defence moves into cyberspace
Companies such as Boeing, Grumman, Raytheon and Lockheed Martin, which make much or all of their revenues from defence, are rapidly building capabilities in cyberspace, buying software companies that can degrade or destroy a computer network, or protect it from such attacks. “The internet is turning the defence industry on its head, just as it …
Intervention with China’s banks
Following yesterday’s story about the fragility of the Chinese banking sector, the Chinese government today announced that it is increasing its stakes in the country’s largest banks. Chinese bank shares have fallen around 30% in the past few months. http://www.ft.com/cms/s/0/2caa65ec-f329-11e0-8383-00144feab49a.html