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Lord Rothschild takes £130m bet against the euro



Lord Rothschild has taken a near-£130m 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 £1.9bn investment trust of which he is executive chairman.

The fact that the former investment banker, a senior member of theRothschild family, has taken such a view will be seen as a further negative for the currency.

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 £1.836bn at the end of July, the position is worth £128m.

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.----

Source: http://www.telegraph.co.uk/finance/financialcrisis/9484435/Lord-Rothschild-takes-130m-bet-against-the-euro.html


Added: Aug-19-2012 Occurred On: Aug-19-2012
By: MB-UK
In: Other News
Tags: lord, rothschild, bank, dynasty, euro, fall, bet
Location: England, United Kingdom (UK/GB) (load item map)
Marked as: approved
Views: 1960 | Comments: 37 | Votes: 0 | Favorites: 0 | Shared: 107 | Updates: 0 | Times used in channels: 2
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  • No aid packages, employment plans, tax cuts or any other reforms can save the euro from collapsing, unless you turn to the wealthy jewish for help.

    Just sign here, here and there where it says we want your soul aswell.

    Posted Aug-19-2012 By 
    Krupp (107.10)

    (4)

  • Of course. Lord Rothchild want countries to be able to inflate their way out of debt instead of balancing their budgets.

    Encouraging indebtedness and debasement of currency would very much fit the reputation of that fine family.

    Posted Aug-19-2012 By 
    mendelbot (174.70)  

    (3)

  • Guess that's it then!

    Posted Aug-19-2012 By 
    ElegantDecline (2134.28)  

    (1)

  • And there he is...one of the top few rulers of the world. He is one of the men who have commanded the entire world for hundreds of year. His group controls wars,famine,and have absolute control over everything that happens in all nations. "Give me contol of all the money in the world and no law can effect me".

    Posted Aug-19-2012 By 
    lysrg25 (104.68)  

    (1)

  • The Euro was the worst thing that happened to my country in the last 50 years, i hope it will collapse soon, it can't get any worse than this for us anyways...

    Posted Aug-19-2012 By 
    Ferrante (392.44)  

    (1)

    • @Ferrante

      The worst thing that happened to your country (and mine too) in the last years was a generation of corrupt and greedy politicians that could not see beyond the next election instead of being really patriotic and think of the country's best interest.

      The Euro has nothing to do with it.

      Posted Aug-19-2012 By 
      mcgus (636.24)  

      (1)

    • @mcgus Same thing here in the U.S.A.

      Posted Aug-19-2012 By 
      ronjon (174.20)  

      (0)

    • @Ferrante

      the euro isnt a real banknote at all. if you look at the 20€ there is an autograph. it was on the gulden!!! if you look closer you will find a "C" copyright! which is fucking ridicolous. it doesnt belong to a bank or come from a bank offical. it has a copyright!!!! and so are the things that are printed on it, FANTASYPLACES! THEY DONT EXIST!!!!!!!!

      SHOW ME ONE BANKNOTE IN THE WOLRD THAT HAS THE COPYRIGHT SIGN PRINTED.

      the whole euro is nothing worth in the end because More..

      Posted Aug-19-2012 By 
      Derek Dean (28.90)
      Derek Dean
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      (-1)

  • The elite rich control it all, just like the dollar, if they want to it fail it will.

    Posted Aug-19-2012 By 
    daveporter (323.40)  

    (1)

  • Must really suck when your that rich but still can't buy immortality.

    Posted Aug-19-2012 By 
    truebrit49 (272.32)  

    (1)

    • @truebrit49 It's a serious mental disorder when you're that rich and are still trying to get more. We should set the tax to 99% once anyone reaches a billion net worth.

      Posted Aug-19-2012 By 
      Zardoz003 (1575.92)  

      (0)

  • Vultures are flying around the victim.

    The difference is that this time they not waiting for it to die, but are actively trying to kill it so they can profit from it.

    They are so idiotic and greedy that they don't see the catastrophic consequences that an euro breakup will cause to the word's economy.

    Posted Aug-19-2012 By 
    mcgus (636.24)  

    (0)

    • @mcgus

      The events of 1939-1945 seems to have been a wasted lesson for these people. They never learn that their behaviour is unacceptable to the rest of humanity, always hitting out and playing the victim, never looking in the mirror and thinking "Is it something WE are doing wrong?"

      Posted Aug-19-2012 By 
      passive_observer (875.70)  
      passive_observer
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  • " Pay no attention to the man behind the curtain ! ! ! "

    Posted Aug-19-2012 By 
    kevinm16 (313.98)

    (0)

  • Comment of user 'NinjaChinchilla' has been deleted by author!

  • This piece of shit needs to be waterboarded

    Posted Aug-19-2012 By 
    sagactor (139.62)

    (0)

  • When the Rothschold's start hedging against the Euro, you know there's going to be trouble. We will suffer in Britain as exports to Europe go down. It's a lose/lose situation.

    Posted Aug-19-2012 By 
    Bsguk420 (98.60)  

    (0)

  • I'd feel more optimistic about our future if everyone with the last name Rothschild were dumped into a volcano.

    Posted Aug-19-2012 By 
    Zardoz003 (1575.92)  

    (0)

  • Comment of user 'mendelbot' has been deleted by author!

  • If you think further, Saddam Hussein threatened to deal in Euros for oil instead of Dollars along time ago and we all know how that panned out! It would be a Federal Bank dream for the Euro to collapse and for the Dollar to remain the currency for oil. We think market forces effect outcomes but that is a naive perception. Illuminati, Bilderbergers etc. control the lot.

    Posted Aug-19-2012 By 
    Bsguk420 (98.60)  

    (0)