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Chase Bank Limits Cash Withdrawals, Bans International... Before you read this report, remember to sign up to http://pennystockpaycheck.com for 100% free stock alerts Chase Bank has moved to limit cash withdrawals while banning business customers from sending...

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Richemont chairman Johann Rupert to take 'grey gap... Billionaire 62-year-old to take 12 months off from Cartier and Montblanc luxury goods groupRichemont's chairman and founder Johann Rupert is to take a year off from September, leaving management of the...

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Cambodia: aftermath of fatal shoe factory collapse... Workers clear rubble following the collapse of a shoe factory in Kampong Speu, Cambodia, on Thursday

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Spate of recent shock departures by 50-something CEOs While the rising financial rewards of running a modern multinational have been well publicised, executive recruiters say the pressures of the job have also been ratcheted upOn approaching his 60th birthday...

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UK Uncut loses legal challenge over Goldman Sachs tax... While judge agreed the deal was 'not a glorious episode in the history of the Revenue', he ruled it was not unlawfulCampaign group UK Uncut Legal Action has lost its high court challenge over the legality...

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Argentina fears default after American court ruling

Category : Business

Judge orders repayment of $1.3bn to ‘vulture funds’ as debt campaigners hit out at speculators’ behaviour

Argentinian politicians and global debt campaigners have responded with fury to a US court judgment that risks plunging the country back into default.

Elliott Capital Management and Aurelius Capital Management, regarded as “vulture funds” by Buenos Aires, won a ruling in a New York court on Wednesday that could force Argentina to hand over $1.3bn (£816m) in repayments and interest to the tiny minority of bondholders who refused to sign up to a hard-fought writedown of its debts after the country defaulted in 2001.

Judge Thomas Griesa upheld his own ruling of last month backing Elliott Associates, and said: “Argentina owes this and owes it now.”

In a strongly worded statement, Griesa said that Argentina should make repayments to the so-called holdouts at the same pace that it is repaying the vast majority of bondholders who did agree to a debt-swap. He also warned that US-based bank BNY Mellon, which handles Argentina’s debt payments to US-based bondholders, would be acting “in active concert” with the republic, if it failed to comply with the ruling.

If some of the country’s repayments were diverted to the vulture funds, however, it could reduce the amount available for Argentina’s other lenders, pushing it into a technical default on more than $60bn in outstanding debts. Buenos Aires has repeatedly made clear that it has no intention of paying anything to the plaintiffs in the case.

Nick Dearden, director of the Jubilee Debt Campaign, said: “It is completely outrageous that the intransigence of a couple of speculators can bring a sovereign nation to the verge of bankruptcy. These vulture funds never lent money to Argentina – they gambled on a crisis that caused enormous poverty and suffering in that country.”

Agustín Rossi, leader of Cristina Fernández de Kirchner’s bloc in the lower house of congress, described the ruling as “absolutely despicable”.

A spokesman for BNY Mellon said: “As we indicated in our filing with the court, in our role as trustee we do not believe we should be bound by the injunction.”

Investors pushed up the price of insuring against a fresh default by Argentina , with short-dated credit default swaps putting the probability at 60%.

Argentina’s $95bn default more than a decade ago came in the midst of a wrenching financial and political crisis, after the International Monetary Fund withdrew financial support and the government decided it could no longer afford to prop up the value of the peso, which was pegged to the dollar. After years of fraught negotiations with investors, more than 90% signed up to a drastic writedown of more than 70% on the value of their debts in two separate deals in 2005 and 2010, which cleared the way for Argentina to return to international financial markets.

But with no agreed international process for handling the bankruptcy of a state, the consequences of Argentina’s default have played out over more than a decade, through scores of separate court rulings.

Before the New York judge’s latest ruling, Fernández, the president, had already made it clear that her government does not intend to negotiate with the holdouts. “We will not surrender money at the cost of hunger and exclusion for millions of Argentines,” she said at a public appearance at a steel plant in Villa Constitución earlier this month.

“We are not going to give in,” she said. “We need to be intelligent, sensible and calm and not respond to provocations from those who want restore an ultraconservative regime that destroyed Argentina.”

“These funds are vultures who seek to profit by betting on a technical default,” Hernán Lorenzino, the economy minister, said in anticipation of the ruling, warning that Argentina would fight the holdouts all the way. He pledged to pursue the issue through higher US courts. “We will continue defending Argentina’s interests at every instance necessary and that includes going before the US supreme court.”

The judge’s decision comes at what is perhaps the most difficult moment in Fernández’s presidency, with popular discontent rising because of her government’s failure to correct an economy that has begun stagnating after nearly a decade of continuous growth.

Argentina was brought to a virtual standstill on Tuesday by the first national strike against her presidency, organised by the same Peronist labour unions who were once her staunchest supporters.The country ground to a halt as labour leaders demanded wage hikes to offset a yearly inflation rate that independent economists estimate at a yearly 25%. The middle class had already taken to the streets earlier this month when a million protesters took to the streets in various cities across Argentina also protesting against high inflation, economic stagnation, corruption in government and the rising crime rate that seems to be accompanying the ailing economy.

Fernhill Corp. (FERN: OTC Link) | Quarterly Report

Category : Stocks, World News

Tue, Oct 09, 2012 06:55 – Fernhill Corp. (FERN: OTC Link) released their Quarterly Report. To read the complete report, please visit: https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=92243.

Read the original here: Fernhill Corp. (FERN: OTC Link) | Quarterly Report

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REPEAT-Media Advisory/Photo Opportunity: BMO Bank of Montreal Celebrates Grand Opening of Whitby Mall Branch-Open Six Days a Week

Category : World News

- New BMO branch represents a $1.6 million investment into the community

- ‘Making Money Make Sense’ in six different languages

- Offering customers extended banking hours, including Saturdays

- Grand opening celebration features giveaways and a raffle for a chance to win a $400 gift certificate to Fern Resort

Excerpt from: REPEAT-Media Advisory/Photo Opportunity: BMO Bank of Montreal Celebrates Grand Opening of Whitby Mall Branch-Open Six Days a Week

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Argentinian president, Cristina Fernández de Kirchner, rejects criticism over YPF nationalisation

Category : Business

Nationalisation of oil company YPF has been criticised as ‘unjustifiable’ but the takeover has support in Argentina

He launches finger-wagging attacks on the “free-market fundamentalists” whom he accuses of conspiring against Argentina’s economic independence. Opposition journalists he dismisses as “parrots” in the pay of corporations that want to destroy the self-defined “national and popular” government of which he is a proud member.

Axel Kicillof, the country’s baby-faced deputy economy minister, is the mastermind behind the controversial seizure last week by Cristina Fernández de Kirchner, Argentina’s president, of the oil giant YPF, the largest company in Argentina, without paying prior compensation to its Spanish owner, Repsol.

Reaction was strong around the world. For Spain, in the middle of an economic crisis, the loss of Repsol’s lucrative Argentinian arm was a blow. In the US, the Wall Street Journal described the surprise move as “theft”.

Hillary Clinton, the US secretary of state, Mariano Rajoy, Spain’s prime minister, and Felipe Calderón, Mexico’s president, labelled the seizure as “unjustifiable” and “a mistake”. But Kirchner – reportedly “hypnotised” by 41-year-old Kicillof’s interventionist economic ideas – is not about to lose sleep over international opinion.

Florencio Randazzo, the interior minister, said: “The government makes its decisions with Argentinians in mind, not based on what the US or Spain might think.”

The takeover has support across the political spectrum and among the population at large. Opposition legislators have said they will vote in favour of the bill Kirchner has sent to Congress, where it is expected to sail through in the next few days. Pollsters add that the move has bolstered the president’s image, recently sagging because of inflation and revelations of corruption in her government.

Recovering YPF for the state is even defended by some of the president’s most ardent critics, such as Pino Solanas the leftwing filmmaker who dropped out of last year’s presidential elections.

“Energy policy for the last 20 years has been run by private individuals as a financial venture,” Solanas said, proclaiming the privatisation of the company 20 years ago was “a disaster”. Until the 1990s, Argentina’s economy was to a large extent closed to the outside world and all public utilities were state-owned, inefficient and overstaffed.

Obtaining a phone line from the state company ENTel could take 20 years. A privatisation programme by the Peronist president Carlos Menem during his 10-year rule in the 1990s brought Argentina violently into the globalised world. Phone lines were available overnight after French and Spanish operators took over. But there was a dark side to the boom years of Menem’s rightwing open-market administration. Hundreds of thousands of employees at state companies such as YPF lost their jobs and much of the middle class quickly slid into poverty.

By the start of this century, Argentina had descended to the level of a barter economy, bank deposits were seized and the country eventually defaulted on its massive foreign debt, ushering in an era of social and economic chaos.

That began to change when leftwing Peronist Néstor Kirchner was elected president in 2003. Argentina entered a new boom phase, this time brought on by leftist consumption-boosting policies that resulted in the longest continuous period of growth the country had seen.

The boom continued after Cristina Fernández de Kirchner succeeded her husband in 2007. After his death from a heart attack in 2010, she was left without her main economic adviser. Some observers feel that her husband’s role in that capacity has now been filled by Kicillof. “He’s young, ambitious, intelligent, good-looking, leftist and authoritarian,” says Laura DiMarco, the author of La Cámpora, a bestselling book about the neo-Peronist youth group of the same name to which Kicillof belongs.

Articulate and energetic, this doctor in economics has reputedly “hypnotised” Fernández with his strong push for greater state intervention.

The YPF seizure marks the coming of age of La Cámpora, headed by technocrats in their 30s and early 40s who view the world through the lens of 1970s revolutionary movements, although they have been portrayed as living in luxury apartments in prime Buenos Aires neighbourhoods, bankrolled with top jobs at the companies renationalised by President Fernández. Kicillof denies this portrait painted of La Cámpora in the independent press. “They want to make La Cámpora look like monsters,” he said recently. La Cámpora is proclaiming the seizure of YPF in heroic terms as a triumph against voracious corporations and first-world dominance. Posters appeared overnight last week on streets natiwonwide bearing only six letters, YPF and CFK (Cristina Fernández de Kirchner) over the motto “They are Argentine”.

The takeover is seen as a “recovery of sovereignty” in a country in which energy had traditionally been in the hands of the state. Although oil production soared during the first 10 years of the newly privatised YPF in the Menem years, falling production and perceived mismanagement in the Kirchner-Fernández de Kirchner years made last week’s move easily acceptable, despite some anger among economists at the seizure without prior compensation.

Kicillof’s dismissal of this criticism as coming from “parrots” and “idiots” in the press is more than rhetorical. Kirchner claims that among the secret YPF papers that Kicillof has uncovered are contracts showing that some journalists received salaries from YPF. “So just go somewhere else with all those stories, those tales and all those parrots,” she said on Friday.

Although Kirchner and her husband both promoted the privatisation of YPF in the 1990s, Kicillof says: “Times have changed.” And he seems to be right.

Even former president and current senator Menem, who privatised YPF in the 1990s, has said that he will vote in favour of a state-owned YPF. Kirchner claims that her husband secretly wished to see YPF renationalised although he made no effort to do so during his government. In his native oil-rich province of Santa Cruz, where she will be laying flowers at his mausoleum this weekend, Kirchner said she is consecrating the new law to his memory.

“I’m going to take him the bill, tied with a ribbon in the Argentine colours,” she said on Friday. “Although one part of him rests there, I know another is not resting and is probably out around doing things. I’m convinced of this, and that’s what’s keeping me alive.”