Sunday, February 22, 2009

Finance moving east

McDonald's gets $423.7M loan from Japanese banks

I thought this was interesting in view of Jim Rogers opinion that finance is moving east, because thats where the money is. McDonalds (the hamburger chain) is probably going to increase sales over the duration of the recession, and I think probably everyone agrees that in it's nature to do well in economic downturns. So basically a safe loan pretty much. However, this bit of bank business seems to have got away from the US and UK.

Posted by stillthinking @ 11:48 AM (1007 views)
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5 thoughts on “Finance moving east

  • This loan is also denominated in yen, and the yen is currently very high. So actually the loan will become easier to repay in the future as the yen falls. Which does make me feel slightly hopeful about UK banks external liabilities, as they too were made at a time when the pound was high, and now its low. So the debts are proportionately easier to repay.

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  • japanese uncle says:

    stillthinking

    USD could well further fall in the near future while GBP may follow the same path particularly after her sovereign rateing would be degraded. This deal in question is a good news for the Japanese banks with no currency risks on their side. At the end of the day JPY denominated TB will be within the horizon.

    Incidentally, chip shops are opening like mushrooms in my neighbourhood, while restaurants are closed one after another, quite like I started to buy ASDA or LIDL honey ditching ROWES honey.

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  • Enough Already says:

    Londald McDonald !!

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  • JU,
    That’s normal in a recession. Everyone is stepping down a level. People who used to eat in fancy restaurants are now going to Pizza Express. People who used to go to Pizza Express are now found in Pizza Hut. Those who used to go to Pizza Hut are ordering Dominos at home; and those who used to order Dominos are now buying frozen ones from Lidl.

    A recent cover article on MoneyWeek (subscription, sorry) described this phenonemon. Note in the picture below how the Boutique shop on the right is closed, while the £1 shop on the left is busier than ever.

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  • japanese uncle says:

    drewster

    It’s a good trend. Coming back to the Lifesize Britain.

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