Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Olympic Contract Game [Wall Street Journal]
Summary: The figures are staggering, with China expected to spend more than $400B through 2010 on infrastructure projects. The 2008 Olympics will cost Beijing about $40B, compared to Athens' $12B spent on the '04 Olympics. And the spending doesn't stop in '08, with Shanghai expected to drop $40B for the 2010 World Expo and Guangzhou estimating $27B for the 2010 Asian Games. This is great news for global giants such as General Electric, Siemens AG and United Technologies, even though the bidding on some of these event-related projects is said to be as competitive as the Olympic games themselves. So far GE has won in excess of $150 million in contracts, and said it hopes to boost its revenue in China to $10 billion by 2010 from the $5 billion it earned last year.
Related links: GE Reports Strong Growth, With NBC Universal Unit Lagging • AccessIT Is Starring in the Analog-to-Digital Cinema Revolution • Chinese 3G Adoption Imminent: Who Stands to Benefit? • Conference call transcript: General Electric Q3 2006 (note CEO Immelt and CFO Sherin's Olympic-related comments)
Potentially impacted stocks and ETFs: General Electric (NYSE:GE), Siemens AG (SI), United Technologies (NYSE:UTX)
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