It has become a European tradition that the government owned airlines and phone companies are often "bossed" around by the politicians who have kept anything but an arm's length relationship when it comes to decision making. Many European countries hold ownership shares in the industries' major players, and it is very common for these governments -- including sometimes even their heads of state -- to meddle and interfere in their business affairs. Then, when there's even a whiff of economic endangerment, they run for the hills.

Continue reading The Phone Is off the Hook in Europe

The Phone Is off the Hook in Europe originally appeared on BloggingStocks on Thu, 23 Dec 2010 16:30:00 EST. Please see our terms for use of feeds.

General Electric's (GE) chief executive visited France this week, making what some are calling a "last-ditch bid" to acquire the transmission and distribution arm of Areva, a state-owned French company.

Immelt spent some time with two of the closest advisors to French president Nicolas Sarkozy, hoping to convince Sarkozy to ignore political pressure and realize the benefits of GE's $6 billion offer. The French government is rather adamant about keeping the domestic company home, asking a pairing of two French companies (Schneider Electric and Alstom) to rework their initial bid, which was the lowest.

Continue reading General Electric's Immelt talks to the French government about Areva

General Electric's Immelt talks to the French government about Areva originally appeared on BloggingStocks on Fri, 27 Nov 2009 12:00:00 EST. Please see our terms for use of feeds.

The G 20 countries wrapped up their ground breaking summit with amazing cooperation among members. The tackled a wide range of problems and were able to agree on just about every key issue.

Let's look at some specific policies that the G 20 members agreed upon:

• Regarding the matter of stimulus, they agreed to boost the International Monetary Fund's lending power to around $750 billion.
• They also unveiled a $250 billion expansion of the IMF's reserve currency, referred to as "special drawing rights." This will boost liquidity in the global financial system by expanding member countries' foreign exchange reserves.
• They agreed to selling gold to help poor countries.

Continue reading G-20 members agree on a $1 trillion stimulus and other reforms

G-20 members agree on a $1 trillion stimulus and other reforms originally appeared on BloggingStocks on Thu, 02 Apr 2009 17:40:00 EST. Please see our terms for use of feeds.

The Associated Press reports that President Bush will hold an economic summit to discuss why the world is such a mess and what can be done to fix things before the entire financial system goes down the porcelain toilet. Bush and French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso announced the retreat at the Presidential retreat at Camp David.

No dates or locations have been set yet, but the first summit would focus on seeking "agreement on principles of reform needed to avoid a repetition of the problems and assure global prosperity in the future." Later summits will focus on specifics. What will come of all this? Absolutely nothing, if I had to guess.

The reality is that President Bush has little to no credibility at home or abroad, and this summit looks like a pretty desperate effort to remain relevant. Given that he has some of the lowest approval ratings of any president in history, and substantive discussions about reform will likely have to wait until the new guy is sworn in.

It's not yet known whether the president-elect will attend the summit but, if he does, lame duck Bush's presence will be irrelevant.

President Bush to hold financial summit originally appeared on BloggingStocks on Sun, 19 Oct 2008 10:40:00 EST. Please see our terms for use of feeds.

Despite excellent earnings from Boeing Co. (NYSE: BA) yesterday, a bit of a shadow still hangs over the company. That's because in February the Air Force awarded a $100 billion contract for in-flight refueling craft -- known as tankers -- to EADS's Airbus and Northrop Grumman (NYSE: NOC). Boeing is currently challenging this award. But an interview I did for my book on Boeing suggests that Boeing will not win this contract because George W. Bush and John McCain want to award the contract to Bush's new friends: France's Nicolas Sarkozy and Germany's Angela Merkel.

I got this theory from a veteran Wall Street analyst who covers the aircraft industry. He suggested that Boeing lost the Tanker bid because John McCain -- who is ranking member on the Senate Armed Services Committee -- had the Air Force change the specifications for the tanker bid so Airbus and Northrop would be able to field a competitive bid. My source noted that the one problem with the change was that the Air Force did not inform Boeing about it.

After the bid was awarded to Airbus, it became clear that the original specifications had changed from a small, 767-sized craft to a medium-sized 777 one. During the review process, my source contends that Boeing asked the Air Force if the 767-sized craft was what it wanted. Boeing also told the Air Force that it would be happy to bid with a different model if the Air Force wanted. But the Air Force told Boeing that it still wanted the 767-sized craft.

Continue reading Did Bush and McCain give the $100 billion tanker project to Airbus?

Did Bush and McCain give the $100 billion tanker project to Airbus? originally appeared on BloggingStocks on Thu, 24 Apr 2008 09:09:00 EST. Please see our terms for use of feeds.