Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account


M&A Flow Helps Pound Shake Off Weak GDP

By Kathy Lien
25 May 2005 22:01 GMT
This may have been related to the fact that we have recently received a whole bunch of disappointing economic releases including industrial production and unemployment.  Yet, the underlying report does show a sliver of hope with personal consumption edging up modestly from the previous quarter.  The M&A flow that we are talking about is actually a big one.  Warren Buffett announced plans to buy PacifiCorp from Scottish Power for $9.4 billion.  Given that over 50 percent of the deal will be in cash, we expect Buffett’s company to be doing a big exchange rate transaction to pay for the deal.  If you recall, close to a year ago, Warren Buffett said that US investments are not as attractive as they use to be and that he will also be looking abroad for investment opportunities.  Today’s M&A announcement is a perfect example of him doing so and we will not be surprised if more of such cross border acquisitions or investments follow this one. 

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

25 May 2005 22:01 GMT