Credit Crunch


30
Sep 09

The long haul: investing in nuclear and agriculture

Hands up whoever groaned with envy at re-elected German Chancellor Angela Merkel’s tax-cutting agenda. The only disagreement with her new coalition partner is how deep these should be. Even to-bed-at-10pm-Frankfurt is beginning to look appealing compared to London.

Her new government also stands united on scrapping the nuclear phase-out. Nuclear energy provides around 25% of the country’s needs.

Someone else who is sighing with envy is Lady Barbara Judge, chair of the UK Atomic Energy Authority. At a Pi Capital breakfast she spoke about one of the (many) challenges facing the industry. Namely, people. With energy security and climate change driving the need for a new generation of nuclear plants, the dearth of specialised engineers and architects is a major issue.


25
Aug 09

A hedge fund perspective

Near Brompton Cross in South Kensington, Jeeves, a drycleaner, has a big sign in the window: “Bankers still Welcome. 7 shirts will be done for the price of 5, How’s that for a bonus?”

I thoroughly approve of a deal and of the open arms to much maligned bankers. I even approve of bonuses. However, on a global scale, nationalised banks that have the effrontery to pay enormous guaranteed bonuses are abusing public trust, while those that argue they have not taken government money are conveniently ignoring that the whole macro system has been transformed in order to bail them out.

Or why else do we have quantitative easing and the slashing of interest rates and enough moral hazard to drown in?!


3
Aug 09

Facing a regulatory overdose

Morgan Stanley kindly hosted a London School of Economics Womens Alumni Network event a few weeks ago. I was the guest speaker, in charge of plugging the LSE Alumni Professional Mentoring Network, which I chair. Difficult to do so over the sound of Michael Jacksons showbiz funeral, broadcast over the AV system. It could not be turned off despite repeated requests.


Rumour has it that French Economy and Finance Minister Christine Lagarde will be the new Internal Market and Services Commissioner on the back of a deal that saw President Nicolas Sarkozy, currently suffering from wife-induced exercise-exhaustion, drop his objections to Jose Manuel Barrosos second term as Commission President.


13
Jul 09

No pool toys for the banks this summer

To a private view of the Jeoff Koons exhibition at the Serpentine Gallery, courtesy of Pi Capital.  His latest series features inflatable pool toys for toddlers. Except everything is not what it seems. Homage to Salvador Dali lobsters, dolphins and turtles, are not light as air but made out of aluminum and painted to resemble the real thing.

Not unlike Nellie Kroes, the formidable EU Competition Commissioner (http://blogs.ec.europa.eu/neelie-kroes/). Except it is the reverse: she appears a heavy-weight when her powers are fast waning.  In the meantime, she scared the living daylights out of Lloyds Banking Group shareholders with her statement at the end of June that it could be forced to sell its Halifax or Bank of Scotland branch networks to comply with European anti-trust rules.