Friday, February 01, 2008

Friday Shorts

The French have a healthy contempt for the English and the Anglo-Saxon economic model. Jérôme Kerviel is thus a hero in France because he brought down the model in France. In the UK, they are saying he went berserk because he was working long hours for a Frenchman-30 hours per week.
Check this though, according to the FT;
  • Check this though, according to the FT;
  • Kerviel’s positions' loss before being discovered ($1.5bn)
  • SocGen's loss due to sub-prime write-offs ($2.0bn)
  • SocGen's loss due to unwinding of Kerviel 's positions ($3.4bn)
  • So who should be fired and in the dock?

KQ has done the right thing by seeking to cut its costs in a period where its seeing 15% capacity in its planes. Anyone running a business will tell you, profit equals revenue less costs. If revenues are falling, you cut costs to maintain profitability. Should it get to Ksh40, it'll be tempting to get into.

Here is a paradox, I keep hearing that Nation's balanced approach to politics is unpopular and has led to lower sales, yet every time there is a breaking story you can't get into its website? Que?

Speaking to Nak-based cousins last weekend, I was worried by how fatalistic they sounded about the wars in their backyard. Both are businessmen so I really thought things were done for our economy. Lakini something tells me we may have turned the corner after we stayed at the abyss and didn't like what we saw. In which case, this was a prime buying week at the NSE. Imagine BBK at Ksh64!

EasyCoach's cancellation of its service to Western Kenya and resultant job losses, makes me question the whole barricade brigade. Who will suffer most if you can't get goods or services into your region?


1 comment:

Ssembonge said...

Maina,

I think the majority of Europeans are anti-capitalists (aka socialists). They loath the American big is better economics.

In Europe, big companies don't display their names in buildings, company cars, etc. In the US it's the opposite.

The funny this is no matter how much Europeans hate the US, they still copy everything the Americans do.