Could The Mexican Swine Flu End Up Costing $3 Trillion And A 4.8% Loss Of Global GDP?

As in life, conflict is always present in the business and financial world. Today, this war theater is in elevated motion. The impact is being felt in equity markets around the world.

The Mexican-American border may soon be shut over the outbreak of swine flu that apparently has already killed over 100 people. Like SARS, a Swine Flu pandemic could significantly impact the global economy. A worst-case scenario has been tabbed at costing $3 trillion and a loss of 4.8% global GDP.
http://tinyurl.com/8bar9
http://tinyurl.com/22ezbq

SARS hit at the end of the 2000-2002 Bear market, causing immense additional cost to an already battered global economy. Could the same thing, or worse, happen today? As the week begins, prices are weak, but not yet collapsing.

Another important battle has begun in the conflict between Bank of America (BAC) and the Allies aka Goldman Sachs (GS) and JP Morgan (JPM) and their puppets, the US Treasury and the Fed. This could get a whole lot more exciting and informative than what I watched last evening in a pathetic Celebrity Apprentice.

[Wall Street Journal] In an effort to restore his sullied reputation, former Merrill Lynch chief John Thain is striking back at Bank of America. He claims the bank lied about its role in the giant bonuses and losses at Merrill Lynch that cost Mr. Thain his job in January, after Bank of America bought the troubled brokerage.

“Getting fired is one thing. But nobody has the right to say things that they know aren’t true,” said Mr. Thain during one of a series of interviews with The Wall Street Journal.

Hopefully, Swine Flu doesn’t take the Bank of America war off the front pages. The public has a need to know who really is running the USA.

Another conflict that has affected the equity market for three years has been brought to a close. (Cara 100 companies) Broadcom (BRCM) and Qualcomm (QCOM) have decided to end their three-year war. Terms of the agreement not deemed confidential are:

* Qualcomm will pay Broadcom $891 million in cash over a period of four years, of which $200 million will be paid in the quarter ending June 30, 2009. The agreement does not provide for any other scheduled payments between the parties;
* Broadcom and Qualcomm agree not to assert patents against each other for their respective integrated circuit products and certain other products and services;
* Broadcom agrees not to assert its patents against Qualcomm’s customers for Qualcomm’s integrated circuit products incorporated into cellular products;
* Qualcomm’s customers do not receive rights to any of Broadcom’s patents with respect to Qualcomm integrated circuit products incorporated into non-cellular products and equipment;
* Qualcomm agrees not to assert its patents against Broadcom’s customers for Broadcom’s integrated circuit products incorporated in non-cellular products; and
* Broadcom customers do not receive rights to any of Qualcomm’s patents with respect to Broadcom integrated circuit products incorporated into cellular products and equipment.

Conflict is always present. Today, however, there is more of it and the stakes are higher.

Subscribe by RSS Subscribe by Email