- MG Rover - I can't believe the report cost £16 million. All that money to accountants and lawyers to tell the Government the Directors were a bunch of shysters - exactly the conclusion of the last report! Now Mandy is preparing for the Sunday Newspapers to splash on it and making noises about having them banned a company directors. Boo hoo - how hard is it to get round that, ever heard of nominees etc. In the picture that is Peter Mandelson looking for someone other than himself to blame, as per usual.
- GM/Vauxhall - Lots of panic about GM closing the Luton Van factory which seems overdone to me. Is only 800 jobs when our dole queues are growing at tens of thousands a month. Economically, the vans will be better to be built in Russia. Forward thinking workers should consider going with the plant perhaps? No doubt the Government will hose some more cash at this deal though, copying the German's. Sadly for us, they have the money and we are printing ours still....
FTSE 5000 - Quite a shock to see the FTSE look like it may stay above 5000 at the end of this week. The chances of a retrace grow with such fast upwards movement. However, it does show QE money hitting the economy and being pushed straight into a new asset bubble in shares. House prices are holding much higher than expected too. This is good news all round, it means that we have enough QE for now and the bank should stop its programme.
The FTSE will still have a significant correction in the next 2 months and end the year flat - so 10% down from here is my expectation.