Boeing’s new 777X airplanes led the Dubai Air Show’s opening day. The company claims orders of roughly $95 billion, purported to be the largest product launch in the history of commercial aviation.
The BBC’s Simon Atkinson notes that the Dubai Air Show is host to the world’s fastest-growing carriers, and they’re looking for more aircrafts to meet high demand.
“The Middle East really has become a hub for global aviation over the past decade,” he says.
Nicholas Mevoli was chasing an American record for diving without supplemental oxygen or fins. It appears he reached the depth; about 236 feet. But he couldn't say "I am OK" when he reached the surface — part of the required protocol for records — and later died.
Australian media reported that the country's spy agency had tried to spy on the Indonesian president's phone calls. In other news, a Russian plane plunged vertically before it crashed over the weekend, and Chile's Michelle Bachelet failed to avoid a runoff in the presidential election.
Michelle Bachelet, the former president of Chile from 2006 to 2010, is well on her way to an encore. A runoff election is set for Dec. 15, where she will face off against her childhood friend Evelyn Matthei.
Timothy Geithner has landed a new job, after leaving his position as Secretary of the Treasury earlier this year: president of the 47-year-old New York-based private equity firm Warburg Pincus.
Geithner’s previous experience is mostly in leadership of public-sector financial institutions: at the IMF, the Federal Reserve Bank of New York, and Treasury.
But he brings plenty of assets with him to the private-sector, and in particular, to private equity, says banking consultant Bert Ely.
“Geithner certainly has an enormous number of contacts and a well-developed reputation with nations across the world,” says Ely. “And so he can be particularly effective in providing entrée to these sovereign wealth funds and the investments they make.”
That’s countries such as China, Norway, and the Gulf States, with enormous cash reserves that need to be invested around the world.
Warburg Pincus is the fifth-biggest private-equity firm on the planet, according to Private Equity International’s 2013 list. It has $35 billion in assets under management.
The firm tends to keep a low profile, though it’s bought, and then sold, legendary brands like eyeware company Bausch & Lomb and high-end retailer Neiman Marcus.
The Treasury Department under Geithner is credited during President Obama’s first term with rescuing banks deemed "too big to fail," and for crafting the new regulatory regime under Dodd-Frank designed to prevent another financial crisis from happening.
Karen Shaw Petrou at Federal Financial Analytics says private equity firms like Warburg Pincus have a very different risk profile from the mega-banks that Timothy Geithner’s Treasury Department helped bail out.
“I think the risks there of a systemic crisis are low,” says Petrou, “because there are many private equity firms and the key to them is going their own way. If they all bet on the same companies, there wouldn’t be any significant upside. And these are guys who are all about making big money as fast as they can -- that’s what private equity is about fundamentally.
Timothy Geithner is on the record favoring increased taxes on private-equity firms and their principals. He said last year that the tax on carried interest -- the share of private equity firms’ profits from deals -- should be raised from its current 15 percent rate.