22-08-10

Mergers and acquisitions

Another way of improving your English and your knowledge of economic and financial matters, is to watch American news channels such as CNN, CNBC and Bloomberg. I am not an investor (I don 't have the money), but it thrills me to know more about financial markets and how the affect our lives. After all, we 've been through a serious economic downturn due to excessive risk-taking, speculative capital movements and lack of government supervision of capital markets.

Watching a business channel such as CNBC can be a stressing experience. They all speak fast and loud. There 's one lady who speaks so fast that I can barely understand here. In the beginning, they all appear to speak gobbledygook. But by carefully listening to them over a long time, you start to understand what it 's all about. They use a lot of specialised words and abbreviations. Recently, I 've learned the meaning of some of these abbreviations. M&A means mergers and aquisitions: one company taking over another. There seem to bee quite a lot of M&A 's this month. Normally, August is a quiet month. Now analysts boast about the huge amount of mergers and acquisitions in August. There 's the hostile take over bid of BHP on Potash. BHP is a strong market player in  resources and minerals. They bet on the rising food markets, as China and other emerging markets grow and as living standards of the middle class over there improve. So BHP 's intention is to take over Potash, a Canadian company that produces fertilisers. Fertilisers may not seem a flashy commodity, but in my opinion (according to me), BHP chooses the right strategical niche. With world population growing and living standards rising in emerging markets, demand for food and especially meat is increasing, which offers huge profitable opportunities. He who controls food, controls the world, because we cannot live without food. But the danger is speculation on food, and monopolies in the food market. Higher prices for food may be a threat in the years ahead.

There 's also the bid from Intel, the chip manufacturer, on McAffee, the producer of security software. As online applications, such as IPhone and smart mobiles increase, the need for online security gets more important. That 's the the strategy behind Intel 's take over bid on McAffee.

$2.7B means 2.7 billion dollar = 2,700,000,000 dollar.

$300M means 300 million dollar = 300,000,000 dollar.

I haven 't yet seen T for trillion, but the system should be logical, so

$3T should mean 3 trillion dollar or 3,000 billion = 3,000,000,000,000 dollar

12:08 Gepost door Johnsatyricon | Permalink | Commentaren (0) |  Print |  Facebook | |

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