Business and financeButtonwood's notebook

A market-related twist to the Dortmund bombing

WHEN three explosive devices hit a bus carrying the Borussia Dortmund football team on April 11th, it was immediately assumed that it was another Islamist attack. Notes were found at the scene of the crime alleging that Islam was the motivation, with the author claiming a link to the terrorist group Islamic State. But prosecutors in Germany allege a completely different rationale. They say that the suspect, a 28-year-old man, had borrowed money and taken out put options, which would benefit from a decline in Borussia Dortmund shares (which fell 3% on the day after the attack). 

As yet, the suspect has not been convicted. But if true, the story would seem to come straight out of Hollywood. In the film “Casino Royale”, James Bond (as played by Daniel Craig) foils a plot to blow up an airliner owned by the fictional firm Skyfleet, after villain Hugo le Chiffre had sold the company’s shares short (ie, bet on their price to fall). In “The Fear index”, a Robert Harris novel, a hedge fund’s trading programme shorts an airline’s stock just before a fatal crash. It was rumoured, after the September 11…Continue reading

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Business and financeGulliver

Is Tom Stuker the world’s most frequent flyer?

“AFTER entering a competition a lucky punter wins first prize: a week’s holiday in Skegness. Second prize is two weeks there.”

For some reason this most ancient of British jokes came to Gulliver’s mind when he read about Tom Stuker in the International Business Times. Mr Stuker, it is claimed, is the world’s most frequent flyer. He is about to clock up his 18-millionth mile on United Airlines. And as the Boarding Area blog points out, 18m miles with United means just that:

United calculates million miler status based on your “butt in seat” revenue miles flown on United. That’s right, we’re not talking about 10 million award miles, or even 10 million miles taking into account elite bonuses for flying first or business class.

Mr Stuker is president of a firm that trains sales staff at car dealerships around the world. He has flown to Australia over 300 times for business and pleasure; he travels to Hawaii “three…Continue reading

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