Lord Rothschild takes Ł130m bet against the euro
2012-08-23 0:00

By James Quinn | Telegraph.co.uk

Lord Rothschild has taken a near-Ł130m 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 Ł1.9bn 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 Ł1.836bn at the end of July, the position is worth Ł128m.

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

Related Articles
Soros Unloads All Investments in Major Financial Stocks; Invests Over $130 Million In Gold

Latest News from our Front Page

Is the countryside racist? Villages 'that want to remain white and middle class'
2015-11-24 20:31
Country dwellers believe rural communities should be the preserve of white middle-class families with conservative values, a survey claims. Many residents of countryside towns and villages consider them the 'last bastion' of old-fashioned English traditions. And they often equate this 'exclusively and unthinkingly' with white Englishness, a study has found. White gate: Are countryside villages, such as The Lee, in Buckinghamshire, racist for ...
More than 30 "White Student Union" pages created on Facebook in last week
2015-11-24 2:37
More than 30 “White Student Union” pages have recently sprung up over the last several days on Facebook, pages that affiliate themselves with various universities around the nation The creation of an “Illini White Student Union” Facebook page that surfaced Nov. 18 in response to a “Black Student Solidarity Rally” at the University of Illinois at Urbana-Champaign gained national attention, but ...
Pew: White Christians no longer a majority
2015-11-24 1:56
A woman prays at Dodger Stadium in Los Angeles during "A Night of Hope," an event hosted by Lakewood Church pastor Joel Osteen. | AP Photo White Christians now make up less than half of the U.S. population, largely receding from the majorities of most demographic groups, with one notable exception: the Republican Party. According to the latest results from Pew Research ...
Cinemas refuse to show Church of England advert featuring Lord's Prayer
2015-11-23 23:52
The UK’s three leading cinema chains have refused to show an advert by the Church of England that features the Lord’s Prayer, citing fears that it could offend people. Vociferous critic of religion says anyone thin-skinned enough to be offended by church advert deserves to be offended The 60-second advert was due to be shown before Star Wars: the Force Awakens, released ...
Free Ottawa yoga class scrapped over "cultural issues"
2015-11-23 23:24
Jennifer Scharf is a yoga instructor who had delivered a free class to students at the University of Ottawa for the past seven years that was cancelled this year due to a complaint that yoga constitutes "cultural appropriation." Errol McGihon/Ottawa SunStudent leaders have pulled the mat out from 60 University of Ottawa students, ending a free on-campus yoga class over ...
More News »