Corporate Profile News – US Healthcare, Eurozone Crisis, Barclays Fine, Europcup 2012


Corporate Profile News – US Healthcare, Eurozone Crisis, Barclays Fine, Europcup 2012

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    A major mile stone decision for the United States, will be decided upon, by the Supreme Court today. Nine justices, will be ruling on President Barack Obama’s biggest legislative achievement, that would extend insurance coverage to at least 30 million uninsured Americans . This would be the biggest overhaul of the nation’s health-care system, since Medicare and Medicaid were enacted, in 1965. It is no secret, that the US healthcare system is in deep trouble, as The United States spends more on healthcare, than any other nation, but out of roughly 310 million Americans, 50 million have no insurance at all. One of the key components of the proposed law, is to require all Americans, to purchase insurance or pay a penalty instead. Another key component of the proposed law, is banning insurers from denying coverage to people, with pre-existing medical conditions, and letting children stay on their parents’ insurance until age 26. One thing is for sure though, the Supreme Court’s decision today, could make or break President Obama’s future as President of the United States.

    Another big decision is looming on the other side of the Atlantic. Ahead of the European summit today, it appears Germany might be willing to make a move on the idea of shared euro zone debt. A well coordinated fiscal policy, will have to provide the backbone for joint guaranteed bonds, but that would mean that a lot of European countries would have to give up a big chunk of their sovereignty over their budgets and my guess is that those countries won’t be too happy about that.

    News, the $60 billion media conglomerate, is splitting into two separate and publicly traded divisions – to separate its entertainment operations from its publishing business. Ruport Murdoch will remain as the Chairman of both the divisions and will also be CEO of the entertainment branch. News Corp shares went up 11% on this announcement, as investors were thrilled that the company’s less profitable publishing endeavor will be separated from the good stuff.

    UK’s second biggest bank, by assets, Barclays Bank, has been a bad boy, a very bad boy, roughing up the markets with some good old interest rate manipulations, and was kindly asked to pay a record fine of $451 million. Basically traders at Barclays would call up they buddy trader at another bank, to coordinate trading activities, that would move interest rate benchmarks (including those of the London interbank offered rate, Libor and Euribor), and subsequently they would generate profits on derivatives, held by the banks. Criminal investigations are under way and Barclay’s shares already dropped 18%.

    Well one half of my prediction has come true – Spain is through to the final in the Eurocup, and today we will find out, who will be its counterpart. My guess is that Germany will knock the Italians out of the park with a 2-1 score! If not more for Germany.

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