Shop Talk

I advertised in the United Arab Emirates this week.I extend a special greeting to you,Arab friends and allies.Your country becomes more important in the business world every year.It's great to host you today.I would also like to remember Michael Metz of Oppenheimer,who died yesterday.A distinguished analyst,Mr.Metz was a frequent guest on business television.He began his career in 1959,but remained active through old age.We shall miss him very much.

Domestic Weakness,Global Strength

The global infrastructure growth continues,GE CEO Jeff Immelt believes.There are tough times ahead vis-a-vis the U.S. consumer.Housing has to stabilize in order to feel like we have a consumer that wants to buy again.We don't see a slowdown in the global economy.These environments continue to be robust.We see in Mubadala a company like ourselves,the spirit of learning that still exists,Jeff Immelt explained.

The Full Power of GE

We shouldn't overdo partnerships,GE CEO Jeff Immelt continued,but when we do them,we put the full power of the company behind them.We are attractive to the best of the best because we have this unique structure as a country and a company.We want to bet on a multitude of energy technologies.Renewables have to be in the lead.We're investing that way.Abu Dhabi is building a renewable energy enterprise,thinking 10-20 years ahead.I agree with almost everything Boone Pickens says,Mr.Immelt added.Khaldoon al Mubarak,CEO of Mubadala,said that his firm is a GE in the making.This is a wonderful start today.

Capitalizing on Strength

The alliance of GE and The Mubadala Company gives GE more capacity for its great originators,says GE CEO Jeff Immelt.The intention is for a full-fledged joint venture.This allows us to strengthen the company where it is already strong.The deal gives us a better opportunity to minimize risk and maximize return.The joint venture capitalizes on the strengths of both companies,Mr.Immelt observed.

Inside the Deal:GE and Abu Dhabi

General Electric(GE) and The Mubadala Company,a state-owned enterprise of Abu Dhabi,have formed an eight billion dollar U.S. partnership.The companies will cooperate in commercial finance,research on clean energy and water,and expanding aircraft engine service and repair in the Middle East.They already have a strong partnership.Their aim is high growth opportunities in the Middle East and worldwide,making shared capital commitments to new joint ventures and investment funds.

Decision Week

This week several central banks are making interest rate decisions.Today at 2:15 PM Eastern,the Federal Reserve issues its decision.On Thursday,the European Central Bank and the Bank of England report their decisions.Markets could be moved by these events.Raising rates tends to control inflation,yet dampen growth.

Shop Talk

People are reading this in Sterling,Virginia and Plainview,New York.My readers are true workers.Even in July,they are busy checking into everything.That is appreciated.Have a relaxing weekend.