05-Nov-2010

G20_coins

Preparation for G20 Summit – Seoul, Korea, November 11-12th

China:

+ China “understands the Fed’s QE2 policy from the angle that it wants to revive the US economy and increase employment. But the problem is the dollar is the global reserve currency.”

+ China’s is worried about the prospect of a “spill-over effect of money pouring into global markets in search of higher yield…may turn into a flood.”

Other Responses:

+ Germany dubbed the Fed’s money-printing policy “clueless”…the problem is not a shortage of liquidity.

+ Inflationary pressures prompted both India and Australia to raise interest rates this week.

+ Thailand and Brazil have both imposed a tax on foreign buyers of their bonds.

US Presidential Elections – 2012

+ Top Democrat funders have given President Obama seven weeks to decide if he is going to run again.

+ Hilary Clinton has ruled out a Presidential run in either 2012 or 2016.

General Motors – IPO

+ Raising $13 billion – $15.65 billion; 365 million shares priced between $26 and $29 per share – priced at a 16% discount to Ford

+ Also selling $3 billion of Preferred Shares

+ US Treasury will own 43.26% after issue

IPO available in US only