SolidarityEconomy.net

. Financial Times concedes world to China and India

“Over the next 30 years, China and India will grow to dominate the world economy. They will give birth to great industrial companies that own plants all around the world. National pride may suffer a little but economic nationalism and imperialism have had their day and that can only be a good thing.” Wow, UK globalists really need to talk to George W. and clue him into the future. What brought the former colonialists of England to accept their national decline; Tata of India is buying Corus, or what is the entire steel industry of the UK and the Netherlands. As the Financial Times points out, the historic tables have turned, not only has the British East India Company disappeared but “the current wave of globalisation, in contrast to that of the 19^th century, is led by the developing as much as the developed world.” Moreover, no one in the UK, not politicians nor workers, raised an alarm. Transnational capital has truly become global. (FT, 10/21/06 Empire strikes back as Tata bids for Corus, p. 6)

.Siemens still getting heat

The 2,000 German workers laid-off after Siemens walked away from its mobile phone business managed to squeeze another $30 million in compensation after a firestorm of protests. That is in addition to the $44 million already promised. Their union, IG Metal, is demanding a sum of $250 million and being supported by the state ministers where the shut-downs took place. Siemens chief, Klaus Kleinfeld, previously worked in the US where social and political constraints are next to nil when it comes to laying-off workers. But as one corporate observer stated, “He found that pretty much everything was possible in the US. But back in Germany he is seeing you have to pay attention to all stakeholders.” Perhaps a lesson for US workers.

. Mergers and Acquisitions in banking

Citigroup is on the prowl announcing its intention to make foreign earnings 60% of their totals. China, Turkey, Poland and Eastern Europe are all up on their hit list. Citigroup just offered $3.1B for a 20 percent stake in Akbank, the largest privately-owned bank in Turkey. This puts them in prime condition to move on Halkbank, a state bank soon to be privatized. Adding Halkbank to Akbank would create the largest bank in Turkey.

Banking consolidation continues in Italy where ABN Amro of the Netherlands and BNP Paribas of France both bought medium sized banks. Meanwhile SanPaolo moved into Egypt buying 80 percent of the Bank of Alexandria of $1.6B; and Intesa’s largest shareholder, the French bank Credit Agricole is pushing to buy SanPaolo’s asset management business.

Turning to South Korea Shinhan Bank took-over LG Card for $7.2B and is expected to aggressively expand into Asia. Shinhan also hooked-up with Japan’s Mizuho Financial Group and BNP Paribas via small-stake crossovers. Shinhan’s larger rival, Kookmin Bank is acquiring the Korea Exchange Bank and recently extended their presence in Asia in a joint venture with Vietcom Bank.