There is a sequence in things. Take Interserve (LON:IRV) which announced a general cock-up on Thursday last. The shares tanked to 55p at which point I sold short. The following day IRV announced a contract win with DWP. The shares closed at 75p on the Friday. Today IRV announce a contract win at the BBC. There has been hardly any effect on the share price.
We are in essence asked to believe that these contracts had not been finalised by the point at which the board had decided to announce the general disaster. I do not so believe. Further, these contracts contain clauses such as "in the event of – in this case IRV – showing signs of insolvency we (insert DWP or BBC, as you will) reserve the right to withdraw." In short, I think the market is mistaken to presume that the contracts must have been finalised the day after cock-up declaration day. I am a trusting fellow. But not that trusting.
by Victor Hill| Economics| 11 mins. to read As Hallowe'en approaches, Americans are tricking and treating. But what is the US stock market doing? The smiling economists of 1700 Pennsylvania Avenue At its AGM in Washington last week the IMF reported that the global economy was humming along nicely with every region of the global economy set to record GDP rises.
by Evil Knievil| Evil Diaries| 1 mins. to read The increase in average life expectancy is great news for all of us, but the main challenge is that it makes funding our retirement considerably more expensive. Unfortunately the problem is compounded by the low annuity rates that are the traditional way of generating a pension.
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