STOCK MARKET WATCH -- Tuesday, 2 September 2014

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Tuesday 2 September 2014[font color=black][/font]

SMW for 29 August 2014

AT THE CLOSING BELL ON 29 August 2014
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Dow Jones 17,098.45 +18.88 (0.11%)
S&P 500 2,003.37 +6.63 (0.33%)
Nasdaq 4,580.27 +22.58 (0.50%)


[font color=green]10 Year 2.34% -0.01 (-0.43%)
[font color=black]30 Year 3.08% 0.00 (0.00%) [font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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(click on link for latest updates)
http://tools.investing.com/market_quotes.php?
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
Wall Street on Parade
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.
02/06/14 Matthew Martoma convicted of insider trading while at hedge fund SAC (Stephen A. Cohen) Capital Advisors. Expected sentence 7-10 years.
03/24/14 Annette Bongiorno, Bernard Madoff's secretary; Daniel Bonventre, director of operations for investments; JoAnn Crupi, an account manager; and Jerome O'Hara and George Perez, both computer programmers convicted of conspiracy to defraud clients, securities fraud, and falsifying the books and records.
05/19/14 Credit Suisse, which has an investment bank branch in NYC, agrees to plead guilty and pay appx. $2.6 billion penalties for helping wealthy Americans hide wealth and avoid taxes.








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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]

[Demeter]

1. I survived Labor Day

The barbecue was a stunning success. People came in a mob: current residents, past residents, even a couple of hopeful would-be residents, who just wandered in, I think. People I'd never seen at a social event showed up. A lot of newly moved-in came, a lot of young people, and several of our 80+ crowd.

They came, they ate, they listened to our very own house band. The rain held off until the last burger was grilled, and then it simply poured.

I hurt in all the usual places, plus one big toe. After cleanup I went to swim one last time in the pool, which closes tonight. I had the place to myself. A hot tub would have been better for what ails me, but it was good to cool down, at least.

And so, the end of a hopeful summer.

Why hopeful? See the next post!

[Demeter]

2. Market Basket: A win for employees / New England's epic supermarket feud ends By Gregory Wallace

VIDEO AT LINK: http://money.cnn.com/2014/08/28/news/companies/market-basket-sale/

Arthur T. Demoulas, the ousted president of Market Basket, reached an agreement late Wednesday to buy out the stake in the 71-store chain controlled by his cousin. The deal ends a 10-week standoff that included employee protests and a customer boycott. Terms were not disclosed. The Boston Globe said the sale price was upward of $1.5 billion, citing a source briefed on the negotiations. In the end, the governors of Massachusetts and New Hampshire got involved in negotiations to reach a deal.

The dispute began in June when the company's board replaced Demoulas, who was beloved for his leadership but had long feuded with his cousin, Arthur S. Demoulas, over control of the family-owned company. Arthur S. and his family controlled 50.5% of the shares of the company. Employees sided with Artie T., as the Market Basket president is known, and asked customers to boycott. Deliveries were halted to the stores, resulting in empty shelves, and hours for part-time employees were slashed. The sale's announcement left the employee group backing Artie T. ecstatic.

"Details are emerging as we write this but we wanted to let the world know that we have emerged from this crisis victorious!" said a statement posted on the Web site of We Are Market Basket, the group of employees and customers.

Artie T. addressed a crowd of employees and supporters outside the company's headquarters Thursday morning, saying that the victory was one for workplace equality. The chain, with 25,000 employees, is known for a generous profit-sharing program and workers who stay with the company for long tenures, working their way up from entry-level jobs to top management positions.

"As I stand before you I'm in awe of what you all accomplished," he told the group. "You have demonstrated to the world that it is a person's moral obligation and social responsibility to protect a culture that provides an honorable and dignified place in which to work."

The company's statement said Artie T. and his management team would return to the chain immediately. Two outside co-CEOs who were brought in by his cousin will remain in place until the sale closes, which is expected in the next several months. All employees were invited to return to work. But the financial impact of the idle stores may have caused lasting damage to the company's finances. It is believed to have lost several million in potential revenue daily -- a major blow in the grocery industry, whose profit margins are low.

The situation also hurt employees. Management repeatedly threatened to terminate workers who did not show up, but held off while negotiations for a sale were ongoing.

[Demeter]

3. ON THE OTHER HAND (There I go, talking like an economist)

[Demeter]

4. Contrariwise

[Tansy_Gold]

6. This

[font color=blue]"As I stand before you I'm in awe of what you all accomplished," he told the group. "You have demonstrated to the world that it is a person's moral obligation and social responsibility to protect a culture that provides an honorable and dignified place in which to work."[font color=black]

[antigop]

56. Demeter, I'm not so sure about this....

Evidently, Artie T. bought out the others with the help of a private equity fund, didn't he?

What strings did the private equity fund attach to the deal?

[Demeter]

5. How America’s Largest Worker Owned Co-Op Lifts People Out of Poverty

http://www.nationofchange.org/how-america-s-largest-worker-owned-co-op-lifts-people-out-poverty-1408111421



Before Zaida Ramos joined Cooperative Home Care Associates, she was raising her daughter on public assistance, shuttling between dead-end office jobs, and not making ends meet. “I earned in a week what my family spent in a day,” she recalled. After 17 years as a home health aide at Cooperative Home Care Associates (CHCA), the largest worker-owned co-op in the United States, Ramos recently celebrated her daughter’s college graduation. She’s paying half of her son’s tuition at a Catholic school, and she’s a worker-owner in a business where she enjoys flexible hours, steady earnings, health and dental insurance, plus an annual share in the profits. She’s not rich, she says, “but I’m financially independent. I belong to a union, and I have a chance to make a difference.”

Can worker-owned businesses lift families out of poverty? “They did mine,” Ramos said. Should other low-income New Yorkers get involved in co-ops? She says, “Go for it.” New York City is going—in a big way—for worker-owned cooperatives. Inspired by the model of CHCA and prodded by a new network of co-op members and enthusiasts, Mayor Bill de Blasio and the New York City Council allocated $1.2 million to support worker cooperatives in 2015’s budget. According to the Democracy at Work Institute, New York’s investment in co-ops is the largest by any U.S. city government to date.

Cooperatives are businesses owned and controlled by their members on the basis of one member, one vote. Given enough time, worker-owned cooperatives tend to increase wages and improve working conditions, and advocates say a local co-op generally stays where it’s founded and acts as a leadership-building force.

“There is no greater medicine for apathy and feelings of living on the edges of society than to see your own work and your voice make a difference,” says a report on co-ops by the Federation of Protestant Welfare Agencies in New York.

more

[Crewleader]

7. Labour Day

[Demeter]

20. Bad news: Wages are down for pretty much everyone

http://www.washingtonpost.com/news/get-there/wp/2014/08/28/bad-news-wages-are-down-for-pretty-much-everyone/

Anyone earning a paycheck knows that raises are rare these days. But a paper released Wednesday shows that not only are wages flat from before the recession — they’re falling.

Real hourly wages are down for workers at all education levels in the first half of this year compared to the first half of 2013, according to the Economic Policy Institute paper. Pay fell by 1.1 percent for people with high school diplomas, by 1 percent for people with some college, 1.6 percent for people with college degrees and by 2.7 percent for people with advanced degrees. “The last year has been a poor one for American workers’ wages,” writes Elise Gould, an economist with the institute, in the report.

Gould notes the pay decreases seen over the last year are part of a longer trend: Wages have pretty much been flat or on the decline since the start of the recession. In fact, the only group that hasn’t seen a drop in real wages since 2007 is workers with advanced degrees, for which wages are basically flat.

Real hourly wages fell for almost all other workers — even for those with a college degree– between 2007 and 2014, according to the report. People with advanced degrees saw wages grow by 0.2 percent. Meanwhile, wages fell by 2.5 percent for people with college degrees and dropped by nearly 5 percent for people with high school diplomas.



MORE DESPAIR AT LINK

[Crewleader]

57. Here's a Nightmare

[Demeter]

8. World Awash in Oil Shields Markets From 2008 Price Shock

AND YET, FOR NO DISCERNIBLE REASON, CRUDE GOES UP $3 IN A WEEK....

http://www.bloomberg.com/news/2014-08-13/world-awash-in-oil-shields-markets-from-2008-price-shock.html

Fighting across Iraq, Libya, Ukraine and Gaza, and an accelerating economy, should mean higher oil prices. Yet crude is falling.

Six years ago, oil soared to a record $147 a barrel as tension mounted over Iran’s nuclear program and the world economy had just seen the strongest period of sustained growth since the 1970s. Now, West Texas Intermediate, the U.S. benchmark price, has traded below $100 for 10 days and Brent, the European equivalent, tumbled to a 13-month low.

What’s changed is the shale fracking boom. The U.S. is pumping the most oil in 27 years, adding more than 3 million barrels of daily supply since 2008. The International Energy Agency said yesterday that a supply glut is shielding the market from disruptions. Bank of America Corp., Citigroup Inc. and BNP Paribas SA concur. “North America has pushed out an incredible amount of crude oil that it used to import,” Ed Morse, the head of commodities research at Citigroup, said in a phone interview from New York yesterday. “The world doesn’t need that much.”

The U.S. imported 7.17 million barrels a day of crude in May, a 26 percent drop from the same month in 2008, according to data compiled by the Energy Information Administration, the Energy Department’s statistical arm. Foreign deliveries will meet 22 percent of U.S. demand next year, the lowest level since 1970, the agency said yesterday...

MUCH MORE: SPECULATION, LIBERATION OF OIL FROM MIDDLE EAST WAR ZONES, ETC. AT LINK

[Demeter]

10. Coordinated Sanctions Aim at Russia’s Ability to Tap Its Oil Reserves

By PETER BAKER, ALAN COWELL and JAMES KANTER

http://www.nytimes.com/2014/07/30/world/europe/european-sanctions-russia.html?_r=2

The United States and Europe kicked off a joint effort on Tuesday intended to curb Russia’s long-term ability to develop new oil resources, taking aim at the Kremlin’s premier source of wealth and power in retaliation for its intervention in Ukraine.

In announcing coordinated sanctions, American and European leaders went beyond previous moves against banking and defense industries in an effort to curtail Russia’s access to Western technology as it seeks to tap new Arctic, deep sea and shale oil reserves. The goal was not to inhibit current oil production but to cloud Russia’s energy future.

The new strategy took direct aim at the economic foundation of Russia, which holds the largest combined oil and gas reserves in the world.

The growth of the oil industry in the last two decades has powered Russia’s economic and geopolitical resurgence since the collapse of the Soviet Union and enriched allies of President Vladimir V. Putin. Russia pumps about 10.5 million barrels of oil a day, making it among the largest producers...


IT SOUNDS LIKE MORE STUPID POLICY TO ME; LET IT FAIL!

[Demeter]

9. It's Time We Eliminated the Corporate Income Tax ROBERT REICH

NOW, HEAR HIM OUT....HE'S GOT A BETTER IDEA!

https://www.linkedin.com/today/post/article/20140319180034-244341831-it-s-time-we-eliminated-the-corporate-income-tax

It's time we eliminated the corporate income tax and made up the shortfall by increasing capital gains taxes. Here's the logic: First, the corporate income tax favors big companies that are able to shift their income abroad and engage in other tax-avoidance activities, while harming small companies that can't do any of this and therefore suffer a competitive disadvantage. Yet small companies are the engines of job growth in America.

Second, the people who actually pay the corporate income tax should properly be the company's shareholders, who are the legal owners of the company and who benefit from increases in its income. But in many cases, depending on the structure of the market, a significant share of the actual burden of paying the corporate income tax is often borne instead by employees in the form of lower wages, or consumers in the form of higher prices.

The best way to insure that it's shareholders and owners who actually pay the corporate income tax is to make it a tax on capital gains enjoyed by shareholders and owners rather than a tax on corporate income. Call it a "corporate income surcharge" and eliminate the corporate income tax.

[Demeter]

11. JUMPING ON THE 1%

I JUST LOVE COLLECTING ARTICLES LIKE THESE!

California's 1-Percenters Are Flush With Water as Rest of the State Remains Parched

http://www.alternet.org/rich-people-hog-water-during-drought?akid=12173.227380.kEeYA5&rd=1&src=newsletter1017040&t=4&paging=off&current_page=1#bookmark

NOTE ORIGINAL TITLE IN LINK!




While most of California worries, cuts back and braces for the worst of this epic drought, the Golden State's 1-percenters are staying flush with water. While some are obeying public water restrictions and having it shipped in by the truckload to their mansions in the tony exurbs of Santa Barbara County, others are just breaking the rules and paying hefty fines for not obeying local water restrictions.

Politico reports that tanker trucks filled with water make routine deliveries to the grand manors of the rich and famous, carting up to 5,000 gallons of water to the region's wealthiest residents. The beltway newspaper reports that Oprah Winfrey, one of Montecito's richest residents, gets water deliveries on a regular basis to keep things flowing at her 40-acre estate. Oprah, whose water bill from the Montecito Water District was almost $125,000 last year, has cut her municipal water use in half this year, but she still needs massive deliveries of H2O to make it work.

Montecito Journal columnist Bob Hazard, says he would not be surprised if some of the town's wealthiest are "paying as much as $15,000 a month for trucked-in water."

Still, not all Montecito residents are relying on water shipments to make up the difference. They are just ignoring the restrictions...

4 Calamities Destroying America's Economy Being Ignored by Elites

http://www.alternet.org/4-calamities-destroying-americas-economy-being-ignored-elites?akid=12175.227380.O3rDW3&rd=1&src=newsletter1017100&t=5



The world’s current economic and political structures are proving incapable of fixing the global crisis of poverty, unemployment, and dislocation from a viable way of life for the majority of the world’s population. Why? Let us begin with one present-day example: Larry Summers, former Secretary of the Treasury and also former chair of the Board of Economic Advisors, recently was the principal guest of the national radio broadcast “On Point.” The topic of the hour-long dialogue was growing “inequality.” Summers posited that we are in an oddly slow recovery. He gave some reasons for the slowness but maintained that the measures instigated by the government (the Federal Reserve pumping funds into the economy, and the like) were fundamentally correct, and that with patience and persistence the recovery would solve the problems we have. This basically is the position of Obama and importantly, by no means only his. Every government in every country subscribes essentially to this same apostolic faith. That faith is pathetic and even grotesquely mistaken. It ignores the four “Tsunami” causes for the globally increasing inequality:

1. Automation: The number of jobs that have been automated out of existence in the last 30 years is astronomical. Any effort to enumerate them would be silly. Useful, on the contrary, are perhaps a few hints of the kinds of automation that are still in the future, but nonetheless just around the corner. Observe what is happening in retail – Amazon.com, and more generally in the service sector, in banks and offices; but beyond that consider the near future of robotics, and close to that the potential of self-driving cars, and of course the galloping field of fabricators. Automation so far has only been the first breeze of an approaching hurricane.
   
   
2. A second colossal cause is globalization. Despite the nonstop discussion of that topic its basic significance is still largely misunderstood. That factory work is outsourced to lower wage countries is a belittling phrase; more accurate is the contrast between the former monopoly of a very few colonial powers and the now prevailing condition where all countries everywhere — even the Central African Republic and Borneo and Mongolia — are indevelopment. In other words, in all countries people are looking for jobs. Thus the supply of labor has burst through all bounds! This in turn means that the value of unskilled work has plummeted beyond human sustainability much less economic growth.
   
   
3. Environmental degradation is growing. The depletion of natural resources is directly caused by fruitless efforts to stem unemployment. Unemployment threatens to grow continuously and the only response we have so far marshaled is economic growth, which self-evidently is coupled to the depletion of our resources.
   
   
4. The fourth mega-force that escalates inequality everywhere is the industrialization of farming. Throughout the millennia of the Agricultural epoch approximately 75% of the population lived and worked on farms. That percentage only started to gallop away from this ratio when farming became mechanized. However, in the brief period of less than 200 years a breathtaking transformation has taken place. Worldwide 70% of farmers have been driven from their work and their land. In country after country the percentage of people still working and living on farms has thundered downwards so that it is now in some countries only about 4%. On some continents that human migration is still in its headlong tilt: but as villages die, the former farmers do not find work; they are absorbed in slums and sink down in the morass of extreme poverty, violence, crime, prostitution and drugs.

The really foul and grotesque dimension of this lies in its cognitive segregation, for the worldwide migration away from the farms is hardly mentioned when the deficit of jobs and the rise of inequality are discussed. In sheer numbers, this is obviously the most gargantuan cause....

How Shadow Banking and Extreme Wealth Inequality Threaten Us

http://www.alternet.org/economy/how-shadow-banking-and-extreme-wealth-inequality-threaten-us?akid=12164.227380.w5NZiL&rd=1&src=newsletter1016803&t=12


This is an adapted excerpt from the new book, The Economics of Revolution. Read the previous portion of this excerpt here: http://www.alternet.org/economy/how-ultra-rich-01-have-sucked-even-more-americas-wealth-you-think

IV: Hidden Wealth & Shadow Banking



The evidence presented in this report thus far makes a very solid mathematical case for significant systemic change. However, to get a more complete understanding of how corrupt the global economic system is, we also need to factor in wealth that is hidden from public view. Disregarding trillions of dollars in hidden wealth just because the wealthy have the ability to illegally hide it is an absolute injustice. It is completely ignoring a critical aspect of what is now the greatest theft of wealth in human history.

Hidden wealth estimates vary widely. Many of them only take a partial look at the most basic methods of offshoring wealth. Given the unprecedented growth of wealth over the past generation, the secretive methods used to hide it have evolved far beyond well-known tax havens in Switzerland and small-island jurisdictions such as the Bahamas. While estimates based on banking secrecy and tax havens help to give us a more accurate picture of overall wealth, they do not give a total view.

Research by Gabriel Zucman, which analyzed banking secrecy, estimated that “around 8% of the global financial wealth of households is held in tax havens.” If we correlate this 8% with the $82 trillion in accounted for wealth reported by the Federal Reserve, that would be an additional $6.6 trillion for the wealthy, bringing the richest 1% up to roughly $39 trillion in overall wealth.

However, to get a more complete understanding of the reality of the situation, the most wide-ranging look into hidden wealth was done in 2012 by economist John Henry in partnership with the Tax Justice Network (TJN). They estimated that there was $21- $32 trillion hidden globally at the end of 2010. As shocking as that sounds, that estimate still did not give a complete view of hidden wealth. As they put it, “We consider these numbers to be conservative. This is only financial wealth and excludes a welter of real estate, yachts and other nonfinancial assets owned via offshore structures.”

MORE

[Demeter]

12. I KNOW MR. CREOSOTE WAS GROSS, BUT...

[Demeter]

13. China allows foreign-owned hospitals in more cities

http://news.xinhuanet.com/english/china/2014-08/27/c_133590967.htm

China has allowed private hospitals solely owned by foreign investors to open in seven cities and provinces, the Ministry of Commerce (MOC) announced on Wednesday. Wholly foreign-owned hospitals are permitted in the cities of Beijing, Tianjin, Shanghai and the provinces of Jiangsu, Fujian, Guangdong and Hainan, according to a statement jointly issued by the MOC and the National Health and Family Planning Commission dated July 25. Foreign investors can either set up a new hospital or take part via mergers and acquisitions, it said. But the MOC specified that only investors from Hong Kong, Macao and Taiwan may set up hospitals featuring traditional Chinese medicine. Administrative approval procedures will be handled by provincial-level authorities.

Wednesday's announcement came after an agreement was signed on July 22 to pilot the first wholly foreign-owned hospital in China in the Shanghai Free Trade Zone. The Chinese central government has stressed reform in its healthcare sector following public demand for more and better healthcare services. A cabinet statement in May pledged price reforms in public hospitals and that more private hospitals would be established. China vowed to expand its healthcare service sector so that it is worth 8 trillion yuan (1.3 trillion U.S. dollars) by 2020.

There were about 5,400 private hospitals on China's mainland in 2008, with that number rising to 10,877 by the end of October 2013, according to official figures. Public hospitals, which provide 90 percent of China's medical services, totaled 13,440 by the end of October.

[Demeter]

14. China private energy firm wins rare crude oil import permit

http://uk.reuters.com/article/2014/08/28/china-crude-guanghui-stone-idUKL3N0QY0FY20140828

China's Guanghui Energy has received a crude oil import licence from the government, becoming one of only a few private firms to win the sought-after licence as Beijing slowly loosens its grip on the state-controlled market. While the licence was for just 200,000 tonnes in 2014 - less than a third of China's daily imports - traders said the move showed a gradual opening up the sector was on track, which could lead to increased crude imports and greater investment. Guanhui Energy said in a statement that its wholly owned Xinjiang Guanghui Petroleum Co Ltd would be allowed to import 200,000 tonnes of crude oil for 2014, joining a market dominated by Sinopec Corp and PetroChina since an industry revamp in 1998.

China, the world's second-largest oil consumer, regulates its oil imports via a quota system to ensure stable domestic supply. The government has pledged to allow more private participation in the energy sector as part of a broader move to reform its clunky and inefficient state-owned sector. Senior oil traders said the latest move was largely cosmetic as Guanghui Energy, which operates in the natural gas and coal-to-chemicals business, does not own an oil refinery and would have to sell the oil to refiners owned mostly by Sinopec Corp and PetroChina.

"As global oil prices become more stable, there will be less financial risk for the government to open the market to smaller, private players," said Gordon Kwan, head of oil and gas at Nomura in Hong Kong.

Traders said Guanghui may have benefited from being an active investor in China's oil and gas rich region of Xinjiang in the remote northwest, an area Beijing is keen to develop. The company also owns two oil blocks in Kazakhstan.

China's independent oil refineries, a main swing supplier of the world's second-largest fuel market, have been eagerly waiting for Beijing to grant them crude oil import permits. Long deprived of crude oil as feedstock, the plants have to import lower-quality fuel oil for processing into gasoline and diesel.

In the stock filing, Guanghui Energy did not give a quota for next year. At 200,000 tonnes, it's less than one cargo of very large crude vessel (VLCC), or less than a third of China's daily imports.

MORE

[Demeter]

23. Goldman, Warburg among investors nearing $2 bln Huarong deal

http://www.reuters.com/article/2014/07/22/china-huarong-investment-idUSL4N0PX1GZ20140722

Goldman Sachs and private equity firm Warburg Pincus are among the investors nearing a deal to buy an up to 20 percent stake in China Huarong Asset Management Ltd for about $2 billion, seeking a share in the profitable business of bad loan management in China. Other investors preparing to buy into China's biggest manager of non-performing loans include Malaysian state investor Khazanah Nasional Bhd, China state-backed CITIC Group , China International Capital Corp, conglomerate Fosun Group and China state-backed COFCO Corp, the people familiar with the matter told Reuters...State-owned bad debt managers like Huarong are benefiting from a rise in non-performing loans in China as the economy slows. The company had assets worth $65.7 billion under management at end-2013 and its net profit for last year jumped 44 percent to 10.1 billion yuan. Huarong is planning to sell the stake to strategic investors ahead of an eventual initial public offering and the seven investors are likely to sign an agreement over the next month, the sources said.

China's biggest banks have said they want to manage their own non-performing loans, attracted by the profits of the bad debt managers like Huarong.

Huarong's smaller peer, state-owned China Cinda Asset Management Co Ltd, raised $2.8 billion in an Hong Kong initial public offering last year. It reported a 26 percent rise in net profit to 9.1 billion yuan in 2013. Like Huarong, Cinda sold a stake to strategic investors that included China's social security fund NSSF, CITIC Capital, UBS AG and Standard Chartered Bank ahead of its IPO.

Established in 1999, Huarong is one of four bad debt managers that were created by the government to clean up the balance sheets of China's biggest banks. Huarong raised $1.5 billion on July 10 in a bond offering that saw huge demand from investors, in a sign of increased confidence in the ability of bad debt managers to profit from the rise in non-performing loans. That deal followed a $1.5 billion bond offering by Cinda in May last year. Both bond deals, and Cinda's IPO, bring the total raised by Chinese bad debt managers to $5.5 billion since December last year...

Citigroup is the advisor for the deal, said the people, who declined to be identified as the matter remained confidential.

[Demeter]

27. Beijing has most Fortune 500 global HQs

SO, BIG BUSINESS THINKS THAT THE CHINESE PEOPLE WILL BE MORE EASILY COWED THAN THE US CITIZENS, AND THERE'S NO DEMOCRACY TO OVERCOME?

DOES BIG BUSINESS HAVE ANY IDEA HOW MANY PEOPLE ARE IN CHINA? AND THE CHINESE CHARACTER? THIS SHOULD BE FUN TO WATCH.

http://beijing.china.org.cn/2014-07/25/content_33053315.htm

Beijing is home to the headquarters of 52 Fortune 500 companies in 2014, the largest number of any city in the world for the second consecutive year, according to the latest Fortune Global 500 list. That is four more headquarters than last year.

The capital city continued to top the list, followed by Tokyo, where 43 companies on the list have their headquarters. New York and Paris shared the third spot with each being home to 18 company headquarters.

Three Chinese companies--China Petrochemical Corporation (Sinopec Group), China National Petroleum Corporation (CNPC) and the State Grid Corporation (State Grid)--were among the top 10, ranking fourth, fifth and seventh, respectively.

Lenovo Group, with revenues of US$38.7 billion in 2013, jumped from number 329 in 2013 to 286 this year. Beijing Automotive Group is number 248 on the overall list, with revenues of US$43.3 billion, up 29.8 percent. Sinopharm Group is ranked 357th, with revenues of US$33.3 billion, up 27 percent.

Notably, the aggregate revenue of the 52 Beijing-based companies reached US$3.96 trillion, up 15.2 percent year-on-year. The figure accounts for 64.9 percent of the total revenue of all Chinese companies on the list.

Ninety-eight of Fortune China's top 500 Chinese companies in 2014 are based in Beijing, followed by Hong Kong (84) and Shanghai (42).

[Demeter]

15. Argentina wants deal with all holdout investors together

"DIVIDE AND CONQUER" MIGHT STILL BE A GOOD IDEA, THOUGH

http://www.reuters.com/article/2014/08/27/us-argentina-debt-idUSKBN0GR1QJ20140827

Argentina's government on Wednesday ruled out further piecemeal debt talks with a small group of U.S. hedge funds and said the country needed to strike a deal with all bondholders which have rejected past restructuring agreements as a single group.

Latin America's No. 3 economy fell into default again last month after failing to reach an agreement with a group of holdout funds led by NML Capital Ltd and Aurelius Capital Management, which are suing for full payment on their bonds. Other funds which have also rejected bond swaps that followed the South American country's record default in 2002 lurk on the sidelines and could launch similar lawsuits. "We have to negotiate with everyone," Economy Minister Axel Kicillof told a group of congressional committees on Wednesday.

A deal is now not seen likely before next year's October presidential election, in which Fernandez cannot run.

Analysts say the dearth of dollars flowing into the economy will stretch already-sapped foreign reserves and intensify pressure on a peso that is falling through one record low after another. The local currency shed 1.5 percent on the black market on Wednesday to plumb an all-time low of 14.400 as central bank reserves fell to $28.5 billion.

Argentina's Congress began debating on Wednesday a draft bill designed to sidestep a U.S. court ruling banning Argentina from servicing performing debt until it pays the litigating funds $1.3 billion plus interest.

"The main aim of the draft bill is to show that Argentina can pay its debt and wants to pay its debt," senior government official Carlos Zannini told the same hearing.

[Demeter]

18. New framework for sovereign defaults By Elaine Moore

http://www.ft.com/intl/cms/s/0/8e27f6b8-2e8b-11e4-afe4-00144feabdc0.html?siteedition=uk

A group representing more than 400 of the world’s largest banks, investors and debt issuers has agreed a plan for dealing with financially stricken countries and their creditors, in a bid to prevent a repeat of the wrangling that has pushed Argentina into default.

After months of talks convened by the US Treasury in the wake of Greece’s restructuring, global debt experts will on Friday unveil a new framework that could transform the relationship between critically indebted nations and lenders. Lawsuits filed by creditors against defaulting governments have doubled over the last decade and the changes come at a time when levels of sovereign debt have risen to record highs around the world in the wake of the financial crisis.

The fallout from recent defaults reignited calls for an international bankruptcy court, but market participants and Washington authorities favour a voluntary response rather than new statutory mechanisms. The International Capital Market Association, whose members include banks, investors and debt issuers, has created fresh clauses for inclusion in sovereign debt contracts that will give countries the option to bind all investors to decisions agreed by the majority. The new approach will make it difficult for small holdout investors to undermine restructuring deals by giving countries the option to employ a single vote across all bonds, with a 75 per cent voting threshold, if it restructures its debt. This will hinder the chances of so-called “vulture” investors from buying up blocking stakes. Alternatively governments can choose to take votes on each bond, or votes on individual bonds and a second vote across all debt. The final option has become a standard clause in eurozone government bonds since 2013 in the wake of the bloc’s debt crisis. ...A further change to be outlined on Friday is intended to make clear that the common “pari passu” clause, which hedge fund investors have used to argue for full repayment on Argentine debt, means equal treatments but not equal payments for bondholders...


I THINK THE VULTURES HAVE JUST BEEN PLUCKED

[Demeter]

16. Speed Traders Seize NYSE Floor as IMC Takes Goldman Post

http://www.bloomberg.com/news/2014-08-28/speed-traders-seize-nyse-floor-as-imc-takes-goldman-post.html

When Scott Knudsen rang the opening bell at the New York Stock Exchange this week, he signaled the ceremonial start of the day’s session and the conquest of the NYSE floor by high-frequency trading firms.

His firm, IMC Chicago LLC, just finished its takeover of Goldman Sachs Group Inc.’s NYSE unit, giving it rights to manage buying and selling of dozens of stocks including prominent ones like International Business Machines Corp., Verizon Communications Inc. and Visa Inc.

IMC joins rival automated trading firms Virtu Financial Inc. and KCG Holdings Inc. facilitating transactions at the NYSE in lower Manhattan, a role once filled solely by humans. While these high-frequency traders, so named because of the speed with which their computers trade, are often reviled by the people they’ve displaced, they’re becoming more dominant.

“This illustrates how market makers from the traditional liquidity suppliers of banks and broker-dealers have been unable to compete in the decentralized, fully electronically traded market,” Terrence Hendershott, a professor at the University of California at Berkeley’s business school, said in an e-mail. ...With Goldman Sachs’s exit, the only bank at the NYSE floor is Barclays Plc.

MORE

[Demeter]

17. FBI, Secret Service investigate reports of cyber attacks on U.S. banks

http://www.reuters.com/article/2014/08/28/us-jpmorgan-cybersecurity-idUSKBN0GR25R20140828

The U.S. Federal Bureau of Investigation said it is investigating media reports that several U.S. financial firms have been victims of recent cyber attacks... on Wednesday, Bloomberg News reported that Russian hackers were believed to have carried out cyber attacks against JPMorgan Chase and another unnamed U.S. bank in mid-August, resulting in the loss of sensitive data. Authorities are investigating whether the breaches were linked to recent attacks on major European banks, the Bloomberg report said...The New York Times reported late on Wednesday that the networks of JPMorgan and at least four other U.S. banks had been infiltrated in a string of coordinated attacks this month, citing four people familiar with the investigation. The attackers stole large quantities of data, including checking and savings account information, though their motivation is not yet clear, according to the Times report, which said several private security firms have been hired to conduct forensic reviews of infected networks.

Reuters was not able to independently verify the details in the Bloomberg and Times reports.

"We are working with the United States Secret Service to determine the scope of recently reported cyber attacks against several American financial institutions," FBI spokesman Joshua Campbell said in a statement late on Wednesday.

He did not name any firms or give further details. A Secret Service spokesman could not be reached for comment.

JPMorgan Chase & Co was the victim of a recent cyber attack, according to two people familiar with the incident who asked not to be identified because they were not authorized to speak publicly about the matter. They declined to elaborate on the severity of the incident, saying JPMorgan was still conducting an investigation to determine what happened.

JPMorgan spokesman Brian Marchiony declined comment when asked about the attack.

“Companies of our size unfortunately experience cyber attacks nearly every day. We have multiple, layers of defense to counteract any threats and constantly monitor fraud levels,” he said in a statement.

NOW THAT'S REASSURING THE PUBLIC, FOR SURE!

[Demeter]

26. ECB Victim of Extortion Attempt After Database Was Hacked

http://www.bloomberg.com/news/2014-07-24/ecb-victim-to-extortion-attempt-after-frankfurt-database-hacked.html

Unidentified hackers broke into a database belonging to the European Central Bank and attempted to use the breach to extort cash from the institution.

“There had been a breach of the security protecting a database” serving the public website, the Frankfurt-based ECB said in a statement today. “This led to the theft of e-mail addresses and other contact data left by people registering for events at the ECB. No internal systems or market-sensitive data were compromised.”

The ECB received an e-mail on July 21 requesting an unspecified amount of money for the data, which contained all or part of a file of around 20,000 names and contact details of people who had previously signed up for ECB conferences, press briefings or other events, an ECB spokesman said by telephone. The ECB said the German police have been informed and an investigation has been started...The security violation comes less than four months before the ECB takes over a new role as the top banking supervisor for the euro area, a task that will involve managing more sensitive data than ever before. The breach is the first time hackers have succeeded in accessing non-public data at the central bank.

“Large financial organizations like the ECB inevitably attract people who are going to try to hack them,” Sean Sullivan, a security adviser at Helsinki-based F-Secure Oyj, said by telephone. “If you manage to extract market-relevant information you’d have some very valuable commodities that you could sell on to private parties or nation states.”

...Frankfurt prosecutors are investigating the incident, office spokeswoman Doris Moeller-Scheu said by telephone.

[Demeter]

19. U.S. risk council to discuss oversight of nonbank firms on Sept. 4

http://www.reuters.com/article/2014/08/28/us-financial-regulations-systemic-idUSKBN0GS2OB20140828

The U.S. systemic risk council will meet on Sept. 4 to discuss naming nonbank financial firms for tougher regulatory oversight, the U.S. Treasury Department said on Thursday. The Financial Stability Oversight Council (FSOC) appears close to deciding whether it believes insurer Metlife Inc is "systemically" risky, or so big its hypothetical failure could destabilize global financial markets. The council has already given this designation to insurers Prudential Financial Inc and American International Group Inc, and General Electric Co's financial services unit. The tag means they will be regulated more like U.S. banks and will come under scrutiny from the Federal Reserve.

At its closed-door meeting next week, the group, which is led by Treasury Secretary Jack Lew, will discuss naming additional nonbank firms for such oversight, according to an update on the FSOC's website. They did not name which firms are under consideration. Regulators recently took a procedural step to pave the way for a vote on Metlife. The council is made up of the heads of U.S. regulatory agencies, including the Fed and the Securities and Exchange Commission. It was created by the 2010 Dodd-Frank Act and charged with monitoring risks to the global financial system in an effort to prevent another massive meltdown.

The group also will discuss its research into asset managers such as BlackRock, which it has been studying to determine whether the industry poses systemic risks. It will also hear an update on banks' so-called living wills, or plans for how they could go through bankruptcy rather than be bailed out in a crisis. The Fed and the Federal Deposit Insurance Corp on Aug. 5 told 11 big banks, including JPMorgan Chase and Citigroup, that their plans were not up to scratch.

[Demeter]

21. ECB hires BlackRock to help develop ABS plan

http://uk.reuters.com/article/2014/08/27/ecb-abs-blackrock-idUKL5N0QX42K20140827

The European Central Bank has hired BlackRock Solutions to provide consultancy services in its preparations for a programme to buy asset-backed securities (ABS), an ECB spokesman said on Wednesday. BlackRock, the world's largest money manager, will provide advice on the design and implementation of a potential ABS purchase programme, but all final decisions will be taken by the ECB itself, the spokesman said...

ECB President Mario Draghi said on Friday the central bank's preparations for outright purchases of ABS were "fast moving forward and we expect that it should contribute to further credit easing."

New York-based BlackRock Inc has played a prominent role in helping Europe deal with its financial crisis, designing stress tests for the Greek and Irish central banks in the wake of their crises. The Bank of Greece hired BlackRock to conduct an asset quality review to determine potential credit losses up to 2016. The Irish Central bank similarly used BlackRock as a consultant to examine its books, including a review of its commercial real estate loans.

BlackRock had nearly $4.6 trillion (3.49 trillion euro) in assets under management at the end of June. The company's BlackRock Solutions and advisory business generated $146 million(110.66 million euro) in revenue in the second quarter, or about 5.3 percent of its total revenue.


IS BLACK(ROCK) THE NEW GOLD(MAN SACHS)?

[Demeter]

22. Cash Crops With Dividends: Financiers Transforming Strawberries Into Securities

I CAN'T WAIT UNTIL THEY START SECURITIZING PREGNANT WOMEN...THIS IS ABSURD! JUST HOW MUCH PROFIT DO THEY THINK THEY CAN SUCK OUT OF FOOD?? THEY ARE TRYING TO STARVE US!

http://dealbook.nytimes.com/2014/07/21/cash-crops-with-dividends-financiers-transforming-strawberries-into-securities/

... a group of investors — including New York’s biggest real estate dynasty, two Florida sugar barons and the founder of a multibillion-dollar investment firm — who have been buying up farms across the United States through a real estate investment trust called the American Farmland Company.

Hedge funds are not new to farmland. For nearly a decade they have scoured the corners of the globe for cheap land as food prices have soared, positioning themselves to profit from the growing demand. Hedge funds now have $14 billion invested in farmland, according to the data provider Preqin.

But in the latest twist, a small but growing group of sophisticated investors and bankers are combining crops and the soil they grow in into an asset class that ordinary investors can buy a piece of...

[Demeter]

24. £1.2m raised in 16 minutes? That'll be a world record

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10983664/1.2m-raised-in-16-minutes-Thatll-be-a-world-record.html

Crowdcube, the equity-based crowdfunding platform, has broken the world record for the fastest fundraising after taking just 16 minutes to hit its target... In a world first, Crowdcube, which raises funds from armchair investors in exchange for equity, today closed a £1.2m round within just 16 minutes. This was 12 times faster than the previous record for the fastest crowdfunded pitch and set a world record for the fastest equity crowdfunding raise of all time. The previous record for the fastest equity crowdfund was Crowdfunder, a Cornwall-based crowdfunding platform focusing on rewards, which raised £500,000 in three hours.

141 investors backed Crowdcube’s latest round of crowdfunding, which will be used to expand the company's operations both in the UK and internationally. The average amount invested topped £8,500. This latest round follows a £3.8m cash injection from venture capital firm Balderton Capital last week...The company, which now has a presence in seven countries, including Brazil, Sweden, Dubai, Poland, Italy, Spain and New Zealand, is hoping to build a truly global crowdfunding platform. The total investment pot, which now totals £5m, will also be used to double the size of Crowdcube's team to 50 staff, opening new offices in London and Scotland while expanding its Exeter base.

INVESTING IN INVESTING? SOUNDS DODGY AND DERIVATIVE TO ME

[Demeter]

25. British regulator, banks near forex-rigging settlement

http://uk.reuters.com/article/2014/07/23/uk-britain-forex-investigation-idUKKBN0FS22F20140723

Britain’s markets regulator and a group of global banks are in talks to reach a first settlement in a currency-rigging probe, with a deal possible this year, Bloomberg reported.

Meanwhile, Britain's Serious Fraud Office told Reuters on Wednesday that prosecutors could charge the first individuals in connection with a global investigation into alleged manipulation of currency markets as soon as next year.

Bloomberg reported the Financial Conduct Authority (FCA) was in talks with banks, including Barclays Plc (BARC.L), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and UBS AG (UBSN.VX)(UBS.N), citing sources who asked not to be identified. (bit.ly/UtbbSM)...Royal Bank of Scotland Group Plc (RBS.L) and HSBC Holdings Plc (HSBA.L) may also be part of the group settlement, according to the sources.

Three of the sources told Bloomberg the FCA was trying to fast-track the process and may levy fines in the coming months. Two sources said the regulator was seeking to keep the scope narrow to speed up a settlement.

[Demeter]

28. Life returns to what passes for "normal" around here

Happy September, Happy Autumn, everyone! Confusion and despair to the running dogs!

[xchrom]

29. Total Wipeout In Atlantic City

http://www.businessinsider.com/casinos-closing-in-atlantic-city-2014-9

In case you had any doubt that the attempt by Atlantic City to revive itself as a gambling destination had completely flopped, check out the series of casino closures that are all happening right now.
This is from Capital NY's Capital Real Estate newsletter:

Atlantic City as we know it is dead: Showboat closed Sunday. Revel, the city’s newest and most expensive resort, pushed hotel guests out the door on Monday and closed its casino floor early this morning. Trump Plaza is to fold in two weeks. And just like that, Atlantic City’s glory days are officially over. Never again will the city be the gaming mecca it once was.

Atlantic City's economy is already ailing, and just the closure of Showboat and Revel will cost the city 5,000 jobs, according to the AP.

The closures are simple to explain: Total gambling revenues were over $5 billion in 2006. Today they're about $2.6 billion.



Read more: http://www.businessinsider.com/casinos-closing-in-atlantic-city-2014-9#ixzz3C9ke9Wgv

[xchrom]

30. Eric Cantor Just Got A Job On Wall Street, And He's Getting A $1.4 Million Signing Bonus

http://www.businessinsider.com/r-eric-cantor-to-join-investment-bank-moelis-as-vice-chairman-2014-9

Former U.S. House Majority Leader Eric Cantor will join investment bank Moelis & Co as vice chairman and managing director, the company said, adding that Cantor would also be elected to its board.
Cantor, who was defeated in June by a Tea Party challenger in a Republican primary election, will provide strategic counsel to the company's corporate and institutional clients on key issues, Moelis said.

"Eric has proven himself to be a pro-business advocate and one who will enhance our boardroom discussions with CEOs and senior management as we help them navigate their most important strategic decisions," Moelis CEO Ken Moelis said in a statement.

Cantor, the No. 2 Republican in the House of Representatives, was beaten by college economics professor David Brat, who accused Cantor of betraying conservative principles on spending, debt, and immigration.



Read more: http://www.businessinsider.com/r-eric-cantor-to-join-investment-bank-moelis-as-vice-chairman-2014-9#ixzz3C9l6IVNx

[DemReadingDU]

38. wow!

[Demeter]

53. He should be indicted for influence peddling, or something

[xchrom]

31. 'Abenomics' Is In Trouble

http://www.businessinsider.com/r-japans-abenomics-feared-in-trouble-as-challenges-build-2014-9

TOKYO (Reuters) - Prime Minister Shinzo Abe's plan for Japan's economy to generate self-sustained growth on the back of his three policy "arrows" of massive monetary easing, spending and reform appears to be faltering - but no magic solution is in sight.
Abe's aides and advisers are promising to forge ahead with painful structural reforms, while spreading the benefits of "Abenomics" to regional areas and drafting a long-term vision for addressing Japan's shrinking population.

But gloomy economic data suggests the plan is not succeeding as hoped and the only short-term contingency plans appear to be further central bank stimulus or delaying a second rise in the sales tax set for October 2015.

"Abenomics is in trouble - because it's not happening fast enough," said Robert Feldman, head of research at Morgan Stanley MUFG in Tokyo, who like many others says Abe must move faster on steps such as labour market reform to boost productivity.



Read more: http://www.businessinsider.com/r-japans-abenomics-feared-in-trouble-as-challenges-build-2014-9#ixzz3C9nsBGe1

[xchrom]

32. Burger King Has Aggressively Dodged US Taxes For Years

http://www.businessinsider.com/burger-king-has-aggressively-dodged-us-taxes-for-years-2014-9

LONDON (Reuters) - Burger King may have taken a lot of flack in the past week for a deal that should curb its U.S. tax bill but in many ways it is consistent with the burger chain’s aggressive tax-reduction strategies in recent years.
Some U.S. lawmakers and other critics attacked the company that is the home of the Whopper for deciding to move its tax base to Canada from the U.S. through its proposed purchase of Oakville, Ontario-based coffee and doughnut chain Tim Hortons <THI.TO>. They say it will allow Burger King <BKW.N> to avoid paying some U.S. taxes.

That would be nothing new. A Reuters analysis of Burger King’s regulatory filings in the U.S. and overseas, which was also reviewed by accounting experts, shows that it has been making major efforts to reduce its U.S. tax bill for some time.

By massaging down U.S. taxable profits while maximizing the profits it reports in low-tax jurisdictions overseas, Burger King is able to operate one of the most tax-efficient businesses in the U.S. fast-food industry.



Read more: http://www.businessinsider.com/burger-king-has-aggressively-dodged-us-taxes-for-years-2014-9#ixzz3C9oPKFR5

[xchrom]

33. Insider Traders In US Face Increasingly Long Prison Terms

http://www.businessinsider.com/r-insider-traders-in-us-face-longer-prison-terms-reuters-analysis-shows-2014-9

NEW YORK (Reuters) - U.S. judges are imposing increasingly long prison terms for insider trading, a Reuters analysis shows. The rise is at least partly driven by the bigger profits being earned through the illegal schemes, defense lawyers said.
The trend is likely to continue on Monday when former SAC Capital Advisors manager Mathew Martoma is sentenced for what prosecutors have called the most lucrative insider trading case ever brought.

In the five-year period ending December 2013, insider trading defendants received an average sentence of 17.3 months, up from 13.1 months during the previous five years, or a 31.8 percent increase, the analysis of 207 insider trading sentences shows. Cases that were reversed on appeal were excluded from the study.

The number of cases has increased, with 57 percent of the sentences imposed in the past five years. The last three years alone have seen two record sentences.



Read more: http://www.businessinsider.com/r-insider-traders-in-us-face-longer-prison-terms-reuters-analysis-shows-2014-9#ixzz3C9os8QQh

[xchrom]

34. New Regulatory Standards Squeeze Islamic Banks On Two Fronts

http://www.businessinsider.com/r-basel-iii-deposit-challenge-looms-over-islamic-banks--2014-9

(Reuters) - As banks around the world gear up to meet tough Basel III regulatory standards, Islamic lenders face a source of uncertainty that could prove expensive for them: how regulators will treat their deposits.
In most ways, Islamic banks look well-placed to cope with Basel III, which will be phased in across the globe over the next few years. Most of the banks are from the Gulf and southeast Asia, where economies are strong.

Since Islamic finance frowns on monetary speculation, their balance sheets are largely clear of the derivatives and complex, risky assets that sunk some of their conventional peers during the global financial crisis. They should therefore have little trouble in meeting Basel III's minimum capital standards.

But their deposit bases could become a headache. Because interest payments are not allowed by sharia principles, Islamic banks obtain deposits mostly through profit-sharing investment accounts (PSIAs), which are generally considered to be more volatile than conventional deposits.



Read more: http://www.businessinsider.com/r-basel-iii-deposit-challenge-looms-over-islamic-banks--2014-9#ixzz3C9pUPEon

[Demeter]

54. They Mess with the Muslims, You're gonna see a Jihad beyond your wildest Dreams

And the US isn't going to put any more boots on the ground.

[xchrom]

35. US Is Facing International Pressure To End Its Ban On Crude Oil Exports

http://www.businessinsider.com/r-exclusive-from-seoul-to-mexico-city-pressure-mounts-to-ease-us-oil-export-ban-2014-9

Washington is facing growing international pressure to ease its long standing ban on crude oil exports, with South Korea and Mexico joining the European Union in pressing the case for U.S. oil shipments overseas.
South Korean President Park Geun-hye told a visiting U.S. delegation of lawmakers on the House of Representatives energy committee on Aug. 11 that tapping into the gusher of ultra-light, sweet crude emerging from places like Texas and North Dakota was a priority, the lawmakers said.

One of South Korea's leading refiners has opened discussions with the government in Seoul over how to encourage Washington to open the taps, three sources in South Korea with direct knowledge of the matter told Reuters.

Mexico is also eagerly awaiting word from the U.S. Department of Commerce on possible shipments and the EU wants U.S. oil and natural gas exports covered by a proposed trade agreement with Washington, the Transatlantic Trade and Investment Partnership.



Read more: http://www.businessinsider.com/r-exclusive-from-seoul-to-mexico-city-pressure-mounts-to-ease-us-oil-export-ban-2014-9#ixzz3CA0I2qjw

[xchrom]

36. College Shouldn't Be America's Only Gateway To The Middle Class

http://www.businessinsider.com/college-gateway-middle-class-2014-9

This week, millions of young people head to college and universities, aiming for a four-year liberal arts degree. They assume that degree is the only gateway to the American middle class.
It shouldn’t be.

For one thing, a four-year liberal arts degree is hugely expensive. Too many young people graduate laden with debts that take years if not decades to pay off.

And too many of them can’t find good jobs when they graduate, in any event. So they have to settle for jobs that don’t require four years of college. They end up overqualified for the work they do, and underwhelmed by it.

Others drop out of college because they’re either unprepared or unsuited for a four-year liberal arts curriculum. When they leave, they feel like failures.



Read more: http://robertreich.org/post/96377869820#ixzz3CA10Ocq7

[xchrom]

37. Jobless figures rise again in August{spain}

http://elpais.com/elpais/2014/09/02/inenglish/1409649185_938179.html

Jobless figures broke a six-month streak and went up again in August. The unemployment services registered 8,070 new jobless claims, to reach a total of 4,427,930 people, according to the Labor Ministry.

August also saw 97,582 fewer contributors to the Social Security system, a fact that can be explained by seasonal factors, given that many temporary education and health contracts came to an end last month.

Seasonally adjusted figures shows only 2,298 fewer contributors, much more in line with the incipient economic recovery.

Broken down by sectors, jobs declined most significantly in the education sector (49,765 fewer workers, for a 7.86% drop) followed by industry (a 1.22% drop) and healthcare (-1.45%). Meanwhile, jobs grew 1.74% in the hotel and restaurant sector.

Compared with August 2013, unemployment declined by 270,853 people, representing the biggest year-on-year fall in the statistical historical series, according to the ministry. Meanwhile, the workforce grew by 321,833 people compared with August 2013, the first time that August has posted an upward trend since the crisis began.

[xchrom]

39. SURVEY: FOREIGN COMPANIES IN CHINA FEEL `TARGETED

http://hosted.ap.org/dynamic/stories/A/AS_CHINA_FOREIGN_BUSINESS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-02-04-57-24

BEIJING (AP) -- Foreign companies in China feel increasingly targeted for unfair enforcement of anti-monopoly and other laws and might cut investment if conditions fail to improve, a U.S. business group said Tuesday.

The American Chamber of Commerce in China's report adds to mounting complaints about a flurry of investigations of global automakers, technology suppliers and other companies. It is a reversal for companies that welcomed plans unveiled by the ruling Communist Party in late 2013 to open the state-dominated economy to more private competition and adds to pressures at a time of slowing growth and rising competition from local rivals.

Almost half of companies that responded to a survey last week believe they are targeted for "selective and subjective enforcement" of anti-monopoly, food safety and other rules, the chamber said in a report. It said China faces a growing risk it "will permanently lose its luster as a desirable investment destination."

"Many areas of regulation are overly focused on foreign multinationals," said the chamber's chairman, Greg Gilligan.

[xchrom]

40. US HOME PRICES ROSE AT SLOWER PACE IN JULY

http://hosted.ap.org/dynamic/stories/U/US_HOME_PRICES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-02-08-41-42

WASHINGTON (AP) -- U.S. home prices rose in July but at a slower rate compared with earlier this year. The moderating price increases could help support sales.

Real estate data provider CoreLogic said Tuesday that prices rose 7.4 percent in July from July 2013. That was slightly below June's year-over-year increase of 7.5 percent and far below a recent peak of 11.9 percent in February.

Prices rose 1.2 percent in July from June. But CoreLogic's monthly figures aren't adjusted for seasonality, such as increased buying that occurs in warm weather.

The smaller price gains should make homes more affordable. The average 30-year fixed mortgage rate was 4.1 percent last week, the lowest in a year. And the number of available homes rose 3.5 percent in July to the most in nearly two years. A greater supply tends to limit the bidding wars that inflate prices.

[xchrom]

41. SHARES MOSTLY RISE WHILE DOLLAR GAINS ON EURO, YEN

http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-02-07-54-14

KEEPING SCORE: By early afternoon in Europe, Britain's FTSE 100 gained almost 0.1 percent to 6,827.47 while Germany's DAX rose 0.6 percent to 9,535.23. The CAC-40 in France was up 0.3 percent to 4,390.49. Futures augured gains on Wall Street after being closed Monday for a public holiday. Dow and S&P 500 futures were both up 0.1 percent.

U.S. ECONOMY: Traders will be focusing on the U.S. employment report for August due Friday. Investor confidence over the U.S. economy has risen following several months of strong growth in hiring and corporate profits and a series of major corporate acquisitions.

ASIA'S DAY: Japan's Nikkei 225 gained 1.2 percent to 15,668.60 while Hong Kong's Hang Seng was flat at 24,750.10. China's Shanghai Composite jumped 1.4 percent to 2,266.05 and Australia's S&P/ASX 200 added 0.5 percent to 5,658.50. Southeast Asian stock markets rose while South Korea's Kospi dropped 0.8 percent to 2,051.58.

DOLLAR RIDES, EURO SLIDES: The dollar was boosted by expectations that the Fed is preparing to raise interest rates, while the euro continued its summer slide by hitting a one-year low against the U.S. currency around $1.3110. It is weighed by speculation that the European Central Bank could inject more money into the eurozone economy, a move that would dilute the currency. The dollar also gained against the yen, rising to 104.88 yen from 104.35 yen late Monday.

CHINA CHILL: Indicators such as power generation, steel output and property sales point to continued weakness in the world's No. 2 economy, which has raised expectations of additional stimulus and boosted Chinese stocks. But Hong Kong, which has heavy exposure to the troubled Chinese property market, was lower. It also has been shaken by rising friction between China's communist leaders and local protesters demanding a direct say in the choice of Hong Kong's leader.

[xchrom]

42. EURO CONTINUES DESCENT AHEAD OF ECB MEETING

http://hosted.ap.org/dynamic/stories/E/EU_EURO_DOWN_AGAIN?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-02-06-51-34

LONDON (AP) -- The euro's descent saw it hit a new one-year low against the dollar on Tuesday, but the currency risks snapping back higher this week if the European Central Bank fails to back up its recent talk of stimulus with action.

The bank, which oversees monetary policy for the 18 countries that use the euro, is under pressure to do more at its meeting on Thursday to boost the ailing eurozone economy and get inflation back up toward its target.

Growing expectations that it may eventually unveil a program to inject new money into the economy have weighed on the euro for weeks. The prospect of more money in circulation tends to dilute the value of a currency. On Tuesday, the euro fell to $1.3110, its lowest level since the $1.3103 it struck on Sept. 6, 2013.

Though the existential crisis surrounding the eurozone has diminished since ECB President Mario Draghi pledged in 2012 to do "whatever it takes" to save the euro, the eurozone economic recovery has been muted.

[xchrom]

43. Identity Crisis in S&P 500 as Range of Valuations Narrows

http://www.bloomberg.com/news/2014-09-01/identity-crisis-in-s-p-500-as-range-of-valuations-narrows.html

The Standard & Poor’s 500 Index, one of the most diverse benchmarks for stocks in America, is starting to resemble a collection of clones.

Three years of virtually uninterrupted gains for the U.S. gauge have resulted in 77 record closes since 2012 and a valuation quirk that some see as a sign of indiscriminate buying. A measure of how much price-earnings ratios among the 50 biggest companies vary has fallen to almost the lowest on record, data compiled by Bloomberg show.

Gaps between stocks shrunk after investors shifted money out of higher-valued technology and Internet companies and bought defensive industries such as consumer staples and utilities. Such rotations, which can be done with a click of a button using exchange-traded funds, show buyers are making too few distinctions among good and bad companies and could exacerbate selling once it begins, said Eric Schoenstein, co-manager of the $5.2 billion Jensen Quality Growth Fund.

“There is less interest in trying to actually pick stocks versus just investing in markets,” Schoenstein, who is based in Portland, Oregon, said in a phone interview on Aug. 28. “If there were another 2008 somewhere on the time horizon, the fact that everything moves in lockstep up means they’d probably drop in lockstep down. That’s going to be very painful if that were to happen.”

[xchrom]

44. Detroit Brings Bankruptcy Plan to Court With Billionaires

http://www.bloomberg.com/news/2014-09-02/detroit-brings-bankruptcy-plan-to-court-with-billionaires.html

Detroit’s plan to fix its finances with hundreds of millions of dollars in private donations comes years after the U.S. automotive capital got hooked on philanthropy to rebuild its blighted neighborhoods, revamp its riverfront and lure new businesses.

Since at least 2003, few big-city governments in the U.S. have leaned as heavily as Detroit on charity for community redevelopment, a habit that won’t change as it seeks to shed about $7.4 billion of debt and end court oversight of its finances.

U.S. Bankruptcy Judge Steven Rhodes is to start a trial today in Detroit on whether to approve the city’s plan to exit its record $18 billion municipal bankruptcy with handouts from some of the richest foundations in the world.

Under a deal with state lawmakers and wealthy donors, the foundations offered to shore up Detroit pension funds as long as the city didn’t use its art collection to pay debts. The city may call billionaire Dan Gilbert, the founder of Quicken Loans Inc., and Penske Corp. founder Roger Penske as witnesses to testify in support of the plan.

[xchrom]

45. Swiss Economy Unexpectedly Stalls as Euro Area Takes Toll

http://www.bloomberg.com/news/2014-09-02/swiss-gdp-unexpectedly-stagnates-as-euro-area-leaves-mark.html


The Swiss economy unexpectedly stalled in the second quarter as stagnating growth in the euro area hurt exports.

Swiss gross domestic product was unchanged in the three months through June from the previous quarter, when it expanded 0.5 percent, the State Secretariat for Economic Affairs in Bern said in a statement today. That’s the weakest quarterly reading in two years and compares with a median estimate for 0.5 percent growth in a Bloomberg News survey of 16 economists.

The Swiss National Bank’s three-year-old cap on the franc has helped the economy outperform that of the euro area in nine of the last 12 quarters. With conflicts between Russia and Ukraine, as well as in the Middle East, putting a strain on global growth, SNB President Thomas Jordan yesterday reaffirmed the ceiling’s importance to ward off economic risks.

“Unfortunately, one must conclude that the Swiss economy has taken a step back -- if not two,” said Felix Brill, senior economist at Wellershoff & Partners Ltd. in Zurich. “My big concern is that the domestic economy has lost momentum faster than expected.”

[xchrom]

46. Santander Selling 2.5 Billion Euros of Riskiest Bank Debt

http://www.bloomberg.com/news/2014-09-02/santander-selling-record-2-5-billion-euros-of-riskiest-bank-debt.html

Banco Santander SA (SAN) is offering the biggest issue of the riskiest bank bonds as the market for the debt opens after a three-month hiatus.

Spain’s largest lender is selling as much as 2.5 billion euros ($3.3 billion) of contingent capital notes that convert to equity if capital ratios fall below preset levels, the Madrid-based lender said in a statement. The biggest sale of the high-yield notes before today was Credit Suisse Group AG (CSGN)’s $2.5 billion of 6.25 percent securities issued in June, according to data compiled by Bloomberg.

Santander is the first major European lender to come to the market since Societe Generale SA (GLE) sold $1.5 billion of additional Tier 1 notes in June, the data show. It’s taking advantage of a drop in borrowing costs as the debt recovers from last month’s selloff that pushed yields up to a six-month high.

“There’s a bit of a rush to issue because rates are so low and it’s very cheap for the issuer,” said Francois Lavier, a money manager at Lazard Freres Gestion SAS in Paris, which manages about $19 billion. “These kinds of securities are in vogue among investors because it’s very difficult to get this level of yield from issuers of this quality.”

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47. Argentines Flock to Stocks as Default Propels Best Gains

http://www.bloomberg.com/news/2014-09-02/argentines-flock-to-stocks-as-default-propels-best-gains.html

Argentina’s debt crisis is producing the world’s biggest stock gains as investors buy equities as protection against peso depreciation and soaring inflation.

The benchmark Merval index has jumped 85 percent this year in peso terms after stocks (MERVAL) surged in August following the country’s second default in 13 years on July 30. While that’s the greatest return among 92 global indexes tracked by Bloomberg, the gain shrinks to 43 percent in dollar terms when using the official exchange rate and 27 percent at the unofficial rate investors use to skirt currency controls.

The domestic market is getting a leg up as the peso heads for its worst year in more than a decade while inflation accelerates to about 38 percent. Stocks offer protection from the weakening currency and an opportunity for investors to get around government limits on dollar purchases by buying Argentine assets locally and then selling them abroad for dollars, a practice called the blue-chip swap.

“Buying shares means you’re buying real assets -- local companies with earnings that rise in line with inflation,” Christian Reos, the head of research at Allaria Ledesma & Cia., a Buenos Aires brokerage, said in a telephone interview.

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48. Islamic Debt Seen Funding U.K. Wind Farms to Rail Tracks

http://www.bloomberg.com/news/2014-09-01/islamic-debt-seen-funding-wind-farms-to-rail-tracks-u-k-credit.html

Islamic debt could become a source of funding for U.K. infrastructure projects from wind turbines to high-speed trains and airports as Britain cements its position as the first sukuk market in a non-Muslim nation.

Investors including Bank of London and the Middle East see scope for the U.K. to issue Shariah-compliant bonds with varying maturities after the Debt Management Office attracted bids for more than 10 times the 200 million pounds ($331 million) of securities offered at its debut sale in June.

Prime Minister David Cameron has pushed for sukuk sales to help establish London as a global capital for Islamic finance alongside Dubai and Kuala Lumpur, and tap into an industry that PricewaterhouseCoopers LLP estimates will increase to $2.6 trillion by 2017. There is investor appetite for more sales that could help fund almost 400 billion pounds of planned infrastructure projects, said Mansur Mannan, executive director of DAR Capital in London.

“The government could help the U.K. industry as well as the Islamic industry further by trying to develop the yield curve and go for much longer-dated paper by underwriting some of the infrastructure-development projects that they have in mind,” Mannan said in an Aug. 19 phone interview. A yield curve is a chart showing rates on bonds of different maturities.

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49. Angelo Mozilo Speaks: No Regrets at Countrywide

http://www.bloomberg.com/news/2014-09-02/angelo-mozilo-speaks-no-villainy-at-countrywide.html

Angelo Mozilo cannot believe it.

Six years after he lost control of the largest mortgage lender in the U.S., and days after news that the U.S. Attorney’s Office in Los Angeles plans to sue him, the Countrywide Financial Corp. founder is baffled by a new effort to punish him, proud of past triumphs and incensed by criticism.

“You’ll have to ask those people, ‘What do you have against Mozilo, what did he do?’” he said in a 30-minute call with Bloomberg News before Labor Day, one of his few interviews since the firm’s downfall. “Countrywide didn’t change. I didn’t change. The world changed.”

Interviews with Mozilo, 75, and three friends show what retirement looks like for a chief executive officer linked to the worst financial crisis since the Great Depression. Remaining out of public view like Lehman Brothers Holdings Inc.’s Richard Fuld or Jimmy Cayne of Bear Stearns Cos., Mozilo has submitted plans for Old West-style offices in California, taught students in Italy about finance, invested in a building in the Arizona desert that houses a Taco Bell and written about his life so that his grandchildren will “know the truth.”

He remains a defender of Countrywide, even after Bank of America Corp., which bought it in 2008, agreed last month to pay more than $16 billion to end probes into mortgage-bond sales on top of about $55 billion in fines that came before. Mozilo doesn’t understand why he and his firm, blamed by lawmakers and authorities for lax underwriting and predatory lending, have been seen as villains.

[Tansy_Gold]

51. no words. none. n/t

[Demeter]

55. I have lots, all unprintable

[Tansy_Gold]

58. I have those words, too, but they're not sufficient. not for this. grrrrrr

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50. Dollar Gains to 7-Month High on Outlook for U.S. Economy

http://www.bloomberg.com/news/2014-09-02/euro-trades-near-one-year-low-as-weak-economy-fuels-easing-bets.html

A dollar gauge rallied to the highest level since January amid speculation an improving U.S. economy will bolster the case for the Federal Reserve to raise interest rates next year sooner than some traders anticipate.

The yen slid toward a the weakest since 2008 against the dollar amid speculation Japan’s Prime Minister Shinzo Abe will appoint a policy maker who may shift pension funds toward riskier assets, damping demand for the nation’s currency. The pound weakened as a survey showed increased support for Scottish independence. South Korea’s won declined.

“The dollar is just slowly, quietly chipping away at every currency,” Greg Anderson, head of global foreign-exchange strategy in New York at Bank of Montreal, said in a phone interview. “This time around, the FX market has said, ‘we are right. All the fundamentals are there for a stronger dollar. We’re going to buy it.’”

The Bloomberg Dollar Spot Index, which tracks the U.S. currency versus 10 major counterparts, advanced 0.3 percent to 1,033.78 at 8:54 a.m. in New York and reached 1,034.16, the highest since Jan. 23.

[Demeter]

52. Somebody's Squeezing out the Gold Shorts--Why?