Wednesday 30 November 2011

Tesco beats most European sovereign states!

Tesco has raised $1bn (£640m) of debt at interest rates cheaper than most European sovereign states.
According to the Telegraph, Britain's biggest retailer offered investors interest of 2pc and 2.7pc on three–year and five–year debt respectively. That compared to Italy, which sold three–year government bonds with a yield of 7.89pc............... Money-machines that happen to sell groceries?
Apart from savvy consumers being willing to trust Tesco more than banks with their money, the market is now showing that shoppers feel the same way about Tesco and politicians….
In other words, instead of politicians running the country like a shop, perhaps it is time to hand the job over to professional shopkeepers?
Seriously, does anyone still believe that finance-based negotiation is a discretionary skill-set in optimising supplier-retailer relationships? 

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