2008 has seen so many financial turning points it is beginning to resemble San Francisco’s famous Lombard Street. The G20 meeting in Washington last weekend will go down as a major, although far more subtle one. Major, because the world’s economic centre of gravity has irrevocably shifted; subtle, because the vast majority of observers do not realise the ramifications of such a momentous shift.

Inbev have been successful in their bid for Anheuser and each shareholder will receive payment of $70 per share in respect of the takeover.

The issues facing Red Back Mining currently are emblematic of the issues facing many capital hungry gold producers. Continued rising costs around the world, and a ‘mysteriously’ weak US dollar gold price is hurting profit margins. We don’t expect this situation to persist but in the short term, growth companies like Red Back will remain under pressure.

The plunge in BT Group’s share price bears testament to the degree to which fear is the dominating emotion among investors in the current environment. A warning from the Telco’s previously unflappable Global Services division has investors flapping. Management have reacted quickly to shore up future profitability though. Both reactively in the case of the culpable unit, and proactively given a worsening economic picture. The headline grabbing announcement of ‘10,000 job cuts at BT’ sends a clear message that the maintenance of profitability is seen as paramount.

The chasm between the immediate term picture and the long term outlook for oil supply is widening. Oil has dipped below US$50 per barrel as the global slowdown gets into full swing as the dangers for future production increase. For Royal Dutch Shell a dip in production has been more than offset by higher energy prices and, an armed with a substantial war chest, the oil major still looks set for a period of sustained out-performance.