25 December 2007

Selling America by the Dollar - Saudis think BIG very BIG

OK so this is a paraphrase of the 5th Genesis Album for those of you old enough to remember when Peter Gabriel fronted the band!

The Saudi Government has established the largest Sovereign Fund ever created. http://www.ft.com/cms/s/0/412752ae-afa4-11dc-b874-0000779fd2ac.html?nclick_check=1
According to the FT the new Saudi fund will dwarf even the very large $1.8 Trillion fund being set up by Abu Dhabi.

So thanks to Geo Bush and Co, America is now going to be old piece by piece. Whether or not this helps the US economy is yet to be seen, however entities from Europe to Asia and the Middle East see big bargains in the US economy.

Some of this will undoubtedly be in the Aviation Travel and Tourism Sectors. So far we have seen very little impact with perhaps only the traditional players making any noises - for example like Lufthansa's investment in jetBlue. However this will undoubtedly change.

Stay tuned folks this is going to be an interesting season

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