Monday, January 19, 2009

Watering hole closures and strong defence

39 pubs are closing every week in the United Kingdom. This is a rate twenty times higher than it was in 2005.

What's the betting that American defence contractors benefit strongly from any stimulus package? Defence has the great twin benefits that the equipment has to be sourced and manufactured in the US and that the time to cut metal and secure/develop jobs is relatively quick. My guess would be tankers for Boeing, more F-22's ( probably including a sale to Japan ) and a replacement for the ageing Navy P-3 reconnaissance planes by a 737 derivative the P-8. In the UK and Europe the non-commercial players have been holding up rather well in the market so the same may happen here.

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