As the global, finance-led recession winds its way through world markets, some particularly exposed sectors have been construction, durable goods and their suppliers – notably steel. As a consequence, one SM favorite, Lakshmi Mittal, has seen his fortunes take quite a hit of late –
Over the past eight months, Lakshmi Mittal, Britain’s wealthiest man, has lost around $51bn (£35bn). Mittal, who controls steel producer Arcelor Mittal, has profited from the construction boom of the past decade, driven by the emerging economies of China and India. His stake in the business in June was worth $65bn. But, as demand for steel has crashed, so has the Arcelor Mittal share price. His holding is now worth $14bn – a staggering loss, although he is not exactly on the streets yet.
“Son, global steel production is a game I’m confident we can play & win… American politics on the other hand…”
And, as if punishment from the market wasn’t enough, a strongly Democratic Congress, empowered by a frenzied effort to pass a hastily-conceived stimulus may be ushering in new protectionist winds –