While they may be opposed to intervention in Iraq and concerned about repeating the errors of the last Iraq War (or, perhaps more correctly, the earlier stage of the ongoing Iraq War), Australians can at least benefit from the conflict another way: through their investments and superannuation. Several of Australia’s biggest financial institutions have substantial investments in the United States war machine and are looking at big rises in the value of their investments since the US began airstrikes against Islamic State (also called ISIS or ISIL) in August.
The biggest members of the US military industrial complex have all enjoyed surges in their share prices since the US air campaign was announced, and last week all touched historic highs ahead of President Barack Obama’s speech announcing an expansion of the campaign. Currently the stand-out is Raytheon, whose share price has put on nearly 13% since Obama announced airstrikes in August, handily outperforming both the Nasdaq and the Dow.
That’s great news for AMP investors: AMP had US$30 million invested in Raytheon at June 30, meaning investors have enjoyed a nearly US$4 million return in just over a month. It’s also great news for Westpac — it had over US$23 million invested in Raytheon at June 30. The Commonwealth Bank had just under US$15 million.
Another top performer is General Dynamics, which has put on over 10% since airstrikes were announced. AMP had over $15 million invested in General Dynamics at June 30, meaning it has picked up a handy US$1.5 million in a month. The Commonwealth Bank, though, only has around $6 million in GD; Westpac just $2.5 million. AMP is also an investor in Lockheed Martin, which has put on 7% since August 7, meaning a cool US$2.5 million on AMP’s US$33.5 million shareholding. The CBA only has US$9 million in Lockheed, but Westpac has nearly US$20 million. Northrop Grumman — up 8% since 7 August — also has AMP (US$27 million), CBA (US$31 million) and Westpac (US$35 million) on its share register.
The couple of hundred million AMP, the Commonwealth and Westpac have in defence companies of course pales into insignificance compared to the often multibillion-dollar holdings major US institutions have in these companies, including those of big public sector retirement funds. For example, among the biggest winners from the rise in defence contractor share prices will be American teachers. The New York state teachers’ super fund, for instance, has nearly $94 million just in Lockheed; the Texas teachers’ super fund has over $112 million in General Dynamics.
But it also pales into insignificance compared to Australia’s stand-out investor in the military-industrial complex, Macquarie Bank. At June 30, MacBank had US$465 million in Northrop Grumman, US$456 million in Raytheon and US$51 million in Lockheed. The new intervention in Iraq has so far given MacBank a handy US$100 million boost in little more than a month. Well done all.
They all make me feel sick. Its just as bad as blood money.
NONE of these companies has an ounce of integrity or ethical practice. Boycott ALL of them, I say!!
I hope bad things happen to the shareholders of all these establishments. They deserve it and more!!
None of it will do them any good if they catch ebola, or the next deadly pandemic after that. It’s easy for Australia to drop people and machines into Iraq. It would be just as easy to drop a few military field hospitals into west Africa. We need to have the same willingness to fix the unattractive problems, as well as the glamorous ones.
“I hope bad things happen to the shareholders of all these establishments.”
That’d be everyone with a retail super fund and a fair chunk of SMSF’s. That’s millions of people to point the bone at…
The DC warmongers, led by the America/Israel Public Affairs Committee & the MIC, have finally created the scenario for a return to limited war in the Middle East…egged on of course by Wall St which makes massive profits during times of military action…in fact, war is the most lucrative of investments for merchant banks. They are the same human scum who asked for a $250 million grant by the US Congress, for Israel, cos it had run out of shells to continue its slaughter of Gazan civilians….all the time egged on by those upstanding, anti-racism Australian Zionist associations.
ISIS, just like Al Quaidea or WOMD or El Shabbab or Hamas or the Man in the Moon etc etc are all confections of these criminals…our great ally.
Proud to be an Aussie warmonger….
I was reading how the revolving door of Australian military operations in Iraq will see more men and equipment flown into a country that has never paid a single dollar in Australian cash. Just for the hell of it, I Googled the definition of “largesse” and the example sentence used to demonstrate the use of the word was “presumably public money is not dispensed with such largesse to anyone else” I’m wondering in a time when the average Aussie is being told they must tighten their belts to ensure the future good of the nation, whether the Iraqis will contributing to the cost incurred by Australia in the protection of Iraqi liberty when the Iraqis themselves apparently have the resources but lack the resolve to do so.