Archive | Monopoly RSS feed for this archive

Risk of Global Financial Contagion Is Growing


Wall Street is currently basking in a vigorous “Trump rally,” with the Dow rising more than 1000 points since the election. The rally is driven by analysts who are salivating over the future prospect of sweeping deregulation of many markets. But there is also chorus of concern from dozens of financial experts, that the global financial markets are “whistling in the graveyard,” acting in a classicly irrational manner. Experts cite a host of issues both financial and geopolitical, among them Trump’s intention to exit TPP, NAFTA, and the COP21 Climate Agreement. Combined with rising geopolitical tensions with China, North Korea, and Iran, a perfect storm of global uncertainty and instability is forming.

Continue Reading →

Bayer’s Proposed $56 Billion Monsanto Acquisition No Done Deal


The global agribusiness industry has recently seen a feeding frenzy of merger and acquisition activity. The announcement this week of Bayer’s proposed purchase of Monsanto after months of difficult negotiation is only one among other such industry consolidation deals. Dow Chemical and DuPont agreed last year to merge their crop science businesses, a deal currently under Justice Department review. Canadian fertilizer companies Potash Corp. and Agrium also agreed to merge this week. Finally, Swiss pesticide giant Syngenta AG agreed to a $43 billion takeover by China National Chemical Corp., a state-owned conglomerate that already sells generic agricultural chemicals. The bigger picture suggests severely reduced competition, higher prices for farmers and consumers, and increased global corporate control of crop seeds, particularly GMO’s. So what is going on here?

Continue Reading →

Partnerships, Collaboration and Co-opetition: More Important Than Ever


In the simplest terms, the concept here is how a company can potentially increase both revenue and market share by executing a strategy to work with direct or indirect competitor(s) to the benefit of both, a win-win. The old Arab saying, “My enemy’s enemy is my friend” also applies. It can also be as simple as joining an ad hoc collaboration among a group of companies or a standards group to create market order and simplicity from an overcrowded and confused market. Customers invariably respond to products that provide the greatest value and paths to long-term increased value and cost reduction. Collaboration or “Co-opetition” is one of the most effective means to achieve that goal, particularly in an economic environment where “flat is the new up.”

Continue Reading →

Risk of Global Financial Contagion Is Growing


Global Financial Contagion, is a well-understood phenomenon among economists, but less so among the general public. Financial contagion refers to “the spread of market disturbances — mostly on the downside — from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows.” Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and institutions. It helps explain an economic crisis extending across neighboring countries, regions, or in the worst case, the entire global economy.

Continue Reading →

Getting Rich Off The Recession: “The Big Short” Comes to Hollywood


Liar’s Poker is one of those books one of your friends strongly urges you to read. A short little book, the recommendation I got from Bill Howe, my Canadian Intel colleague in Europe, was that it was a hilarious read. And so it was. It reads like Animal House. Michael Lewis also recently wrote The Big Short, his analysis of the 2008 financial meltdown. Liar’s Poker has been described as a comedy, and The Big Short as a tragedy, which seems very apt to me if you have heard Michael discuss both books. Many may know Michael best for his recent success with Moneyball.

Continue Reading →

Pfizer’s Corporate Tax “Inversion” To Ireland: Masqueraded Tax Evasion


Pfizer’s announcement this week of its intricate $160 Billion merger/acquisition with Irish pharmaceutical company Allergan, revealed that Pfizer will be moving the new corporate headquarters to Dublin. Essentially, Pfizer, the much larger company, is providing a bridging loan to Allergan to purchase Pfizer so that it may move to Ireland. This enables Pfizer to avoid paying U.S. taxes, even after receiving massive support for R&D from U.S. government programs.

Continue Reading →

Setback for Net Neutrality May Actually Speed Its Adoption


Yesterday, the United Stated Federal Court of Appeals in Washington, D.C. issued a ruling that was essentially a “technical” setback for the notion that all Internet traffic should be treated equally, better known as Net Neutrality. The ruling now permits giant corporations like Verizon, NBC/Comcast, and Time Warner to charge higher fees to content providers like Netflix, Amazon and even potentially, Google. If that sounds bad for consumers, you are right. This decision was essentially caused by an earlier decision of the U.S. Federal Communications Commission to maintain a free and open “hands off” policy, and not regulate Internet traffic, considered evil by Internet purists. But the effect of this Court ruling may be greater evil, leading to the conclusion that “common carrier” regulation may be the lesser of two evils.

Continue Reading →

Barclays, Others Expand FX Probe to Salespeople (The Wall Street Journal Europe, Nov 20 2013, Page1)


LONDON—Banks including Barclays PLC that are enmeshed in the global investigation into potential manipulation of foreign- exchange markets are looking into the possible roles played by their salespeople, according to people familiar with the…read more…

Comments Off Continue Reading →

Manipulation of Global Currency Trading Suspected by Swiss Investigators


An entirely new global financial scandal is swirling in the world of arbitrage. This follows on the heels of recent revelations of commodity market manipulation by JP Morgan and other global financial firms, uncovered during the ongoing LIBOR interest rate manipulation investigation. The commodities suspected to have been manipulated represent the full spectrum from petroleum […]

Comments Off Continue Reading →

U.S. Ranks Lowly 8th in Global Internet Race: Sweden #1


Originally posted on Gigaom:
Sweden was the first country to launch an LTE network, and it retains plenty of bragging rights. According to a study by U.K. network-testing firm OpenSignal, Sweden has the fastest 4G networks in the world, averaging download speeds of 22.1 Mbps. The U.S. was the second country to deliver commercial LTE…

Continue Reading →