Lord Rothschild takes £130m bet against the euro
2012 08 23
By James Quinn | Telegraph.co.uk
Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.
The member of the banking dynasty has taken the position through RIT Capital Partners, the £1.9bn investment trust of which he is executive chairman.
The fact that the former investment banker, a senior member of the Rothschild family, has taken such a view will be seen as a further negative for the currency.
Lord Rothschild has led RIT since 1988
The latest omen follows news in The Daily Telegraph late last week that the government of Finland is already preparing for the euro’s break-up.
RIT, which Lord Rothschild has led since 1988, had a -7pc net short position in terms of principal currency exposures on the euro at the end of July, up from -3pc at the end of January. Given a net asset value of £1.836bn at the end of July, the position is worth £128m.
Sources close to RIT suggested that the position was not a dogmatic negative view on the euro as a currency, but rather a realistic approach on a currency that remains relatively weak.
It is not the first time Lord Rothschild has used currency positions as a form of hedge. RIT significantly increased its exposure in sterling after the currency’s decline in 2008, but then scaled back on both the sterling and the euro, anticipating the ensuing recessions in both regions.
Some 53pc of RIT’s assets were in US dollars at the end of July, in part a reflection of its deal to buy a 37pc stake in Rockefeller Financial Services at the end of May.
Lord Rothschild is not alone in seeing value in shorting – or selling down – the euro. At a conference organised by business news channel CNBC in July, Mary Callahan Erdoes, head of JPMorgan Asset Management, said “shorting the euro” when asked for her single best investment idea.
In June, George Soros – the billionaire investor best known in the UK for helping to force sterling out of the European Exchange Rate Mechanism in 1992 by betting against the British currency – said that European leaders at that point had a “three-month window” to save the euro.
Read the full article at: telegraph.co.uk
Also tune into Red Ice Radio:
Bill Still - The Money Masters & The Secret of Oz
William Dean A. Garner - World Control, Gold & The Jesuits
Tracy Twyman - Alconomics, Money & Magic
Ellen Brown - The Web of Debt, The Manufactured Financial Crash, Global Tax & The Basel Accords
Joseph P. Farrell - Babylon’s Banksters, Global Financial Blackmail, Geo Warfare & The End Game
Jim Marrs - The Trillion-Dollar Bailout Conspiracy, Underwear Bomber, TSA, Wikileaks & Socialism
Joan Veon - G20, Global Credit Crisis & Public-private Partnership
Soros Unloads All Investments in Major Financial Stocks; Invests Over $130 Million In Gold
Latest News from our Front Page
Nigel Farage (UKIP) Speech on the EU, UK & Mass Immigration
2014 03 08
UKIP Nigel Farage Spring Conference speech - 2014
Red Ice Radio:
Nigel Farage MEP - The State of the EU & The Undemocratic Treaty of Lisbon
Labour wins UK by-election as Ukip trumps Tories
The ruling coalition in the UK was dealt a blow in the latest by-election test, as the UK Independence party pushed the Conservatives and Liberal Democrats into third and fourth ...
Pentagon studying Putin’s body language to predict his behavior
2014 03 07
The Pentagon has spent hundreds of thousands of dollars in recent years so that researchers can study the body movements of foreign leaders, including Russian President Vladimir Putin, in hopes of predicting future behavior.
An article published by USA Today reporter Ray Locker on Thursday and corroborated by documents discovered by RT provides rare insight into a scarcely-discussed military effort that ...
Pentagon Claims That Climate Change ‘Enables Terrorism’
2014 03 07
In it’s latest Quadrennial Defense Review the Pentagon has said that climate change and ’erratic’ climate will cause increased terrorist activity.
The four yearly reports highlight threats that face civilization and this years homed in on climate change causing an increase in terrorism.
It also mentioned that rises in sea levels and other issues associated with a warming planet will lead ...
Scientists Control Tiny Mechanical Probes Inside Human Cells
2014 03 07
Nanotechnology doesn’t get as much attention these days as genetic and stem cell approaches to medicine, but all three aim to target the causes of illness with greater precision and less collateral damage in the rest of the body than conventional approaches.
Nanotech breakthroughs have come more slowly than many had hoped, but a recent success shows progress toward the goal ...
Fukushima: The Ticking Nuclear Bomb. Over 800 Tons of Radioactive Material Pouring into Pacific Ocean
2014 03 07
First published by GR in October 2013
In August this column ran a piece claiming that the Pacific Ocean was being poisoned by radioactive material escaping from Fukushima, two years after the devastating tsunami and meltdown at the Japanese nuclear facility. Three months later, shocking evidence points towards a calamity situation.
Silence from the corporate media.
There is growing evidence coming from ...
|More News » |