Don’t believe every headline you read
See the original post: HP may break up: Buy the stock right now!
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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...
Cambodia: aftermath of fatal shoe factory collapse... Workers clear rubble following the collapse of a shoe factory in Kampong Speu, Cambodia, on Thursday
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...
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...
Eurozone crisis live: Japan's strong growth figures... PM Shinzo Abe's stimulus package could generate feelgood factor needed to end two decades of stagnant growthPhillip Inman
Don’t believe every headline you read
See the original post: HP may break up: Buy the stock right now!
Free parking, free tickets for children 14-and-under headline opening night promotion
Chancellor accelerates business tax cuts flagged in the March budget, bringing corporation tax rate in line with Ireland and Luxembourg
Britain is closing the corporate tax gap with rivals such as Ireland and Luxembourg by slashing a further 1% off corporation tax.
George Osborne announced the cut, bringing the rate of corporation tax to 21% in April 2014, in the same week that he joined the debate over multinationals dodging payments to the Treasury on their UK operations.
It also means the chancellor has further accelerated business tax cuts flagged in the March budget. Instead of cutting corporation tax from 24% to 22% by April 2014, as announced earlier in the year, he is now reducing it to 21%.
Announcing the latest reduction, Osborne compared it favourably to headline rates elsewhere, including the 40% levy in the US, 33% in France and 29% in Germany. “This is the lowest rate of any major western economy. It is an advert for our country that says: come here; invest here; create jobs here; Britain is open for business.” The headline UK rate has already been reduced from 26% to 24% this year.
The latest move brings the UK corporation tax rate in line with Luxembourg, which also charges 21% on business profits. Luxembourg’s tax regime is viewed by many companies – such as Amazon – as more appealing than Britain’s. The UK will still levy a higher rate than Ireland, which has a rate of 12%.
Osborne added that banks would not benefit from the move, as he announced a simultaneous increase in the bank levy. “We will not pass the benefit of this reduced rate on to banks, and to ensure that we meet our revenue commitments, the bank levy rate will be increased to 0.130% next year,” he said.
SCOTTSDALE, AZ–(Marketwire – Sep 27, 2012) – Capital Group Holdings, Inc. (
The media’s ‘bad apple’ thesis no longer works. We’re seeing systemic corruption in banking – and systemic collusion
Last fall, I argued that the violent reaction to Occupy and other protests around the world had to do with the 1%ers’ fear of the rank and file exposing massive fraud if they ever managed get their hands on the books. At that time, I had no evidence of this motivation beyond the fact that financial system reform and increased transparency were at the top of many protesters’ list of demands.
But this week presents a sick-making trove of new data that abundantly fills in this hypothesis and confirms this picture. The notion that the entire global financial system is riddled with systemic fraud – and that key players in the gatekeeper roles, both in finance and in government, including regulatory bodies, know it and choose to quietly sustain this reality – is one that would have only recently seemed like the frenzied hypothesis of tinhat-wearers, but this week’s headlines make such a conclusion, sadly, inevitable.
The New York Times business section on 12 July shows multiple exposes of systemic fraud throughout banks: banks colluding with other banks in manipulation of interest rates, regulators aware of systemic fraud, and key government officials (at least one banker who became the most key government official) aware of it and colluding as well. Fraud in banks has been understood conventionally and, I would say, messaged as a glitch. As in London Mayor Boris Johnson’s full-throated defense of Barclay’s leadership last week, bank fraud is portrayed as a case, when it surfaces, of a few “bad apples” gone astray.
In the New York Times business section, we read that the HSBC banking group is being fined up to $1bn, for not preventing money-laundering (a highly profitable activity not to prevent) between 2004 and 2010 – a six years’ long “oops”. In another article that day, Republican Senator Charles Grassley says of the financial group Peregrine capital: “This is a company that is on top of things.” The article goes onto explain that at Peregrine Financial, “regulators discovered about $215m in customer money was missing.” Its founder now faces criminal charges. Later, the article mentions that this revelation comes a few months after MF Global “lost” more than $1bn in clients’ money.
What is weird is how these reports so consistently describe the activity that led to all this vanishing cash as simple bumbling: “regulators missed the red flag for years.” They note that a Peregrine client alerted the firm’s primary regulator in 2004 and another raised issues with the regulator five years later – yet “signs of trouble seemingly missed for years”, muses the Times headline.
A page later, “Wells Fargo will Settle Mortgage Bias Charges” as that bank agrees to pay $175m in fines resulting from its having – again, very lucratively – charged African-American and Hispanic mortgagees costlier rates on their subprime mortgages than their counterparts who were white and had the same credit scores. Remember, this was a time when “Wall Street firms developed a huge demand for subprime loans that they purchased and bundled into securities for investors, creating financial incentives for lenders to make such loans.” So, Wells Fargo was profiting from overcharging minority clients and profiting from products based on the higher-than-average bad loan rate expected. The piece discreetly ends mentioning that a Bank of America lawsuit of $335m and a Sun Trust mortgage settlement of $21m for having engaged is similar kinds of discrimination.
Are all these examples of oversight failure and banking fraud just big ol’ mistakes? Are the regulators simply distracted?
The top headline of the day’s news sums up why it is not that simple: “Geithner Tried to Curb Bank’s Rate Rigging in 2008″. The story reports that when Timothy Geithner, at the time he ran the Federal Reserve Bank of New York, learned of “problems” with how interest rates were fixed in London, the financial center at the heart of the Libor Barclays scandal. He let “top British authorities” know of the issues and wrote an email to his counterparts suggesting reforms. Were his actions ethical, or prudent? A possible interpretation of Geithner’s action is that he was “covering his ass”, without serious expectation of effecting reform of what he knew to be systemic abuse.
And what, in fact, happened? Barclays kept reporting false rates, seeking to boost its profit. Last month, the bank agreed to pay $450m to US and UK authorities for manipulating the Libor and other key benchmarks, upon which great swaths of the economy depended. This manipulation is alleged in numerous lawsuits to have defrauded thousands of bank clients. So Geithner’s “warnings came too late, and his efforts did not stop the illegal activity”.
And then what happened? Did Geithner, presumably frustrated that his warnings had gone unheeded, call a press conference? No. He stayed silent, as a practice that now looks as if several major banks also perpetrated, continued.
And then what happened? Tim Geithner became Treasury Secretary. At which point, he still did nothing.
It is very hard, looking at the elaborate edifices of fraud that are emerging across the financial system, to ignore the possibility that this kind of silence – “the willingness to not rock the boat” – is simply rewarded by promotion to ever higher positions, ever greater authority. If you learn that rate-rigging and regulatory failures are systemic, but stay quiet, well, perhaps you have shown that you are genuinely reliable and deserve membership of the club.
Whatever motivated Geithner’s silence, or that of the “government official” in the emails to Barclays, this much is obvious: the mainstream media need to drop their narratives of “Gosh, another oversight”. The financial sector’s corruption must be recognized as systemic.
Meanwhile, Britain is sleepwalking in a march toward total email surveillance, even as the US brings forward new proposals to punish whistleblowers by extending the Espionage Act. In an electronic world, evidence of these crimes lasts forever – if people get their hands on the books. In the Libor case, notably, a major crime has not been greeted by much demand at the top for criminal prosecutions. That asymmetry is one of the insurance policies of power. Another is to crack down on citizens’ protest.
NEW YORK (TheGoldAndOilGuy.com) — Pre-market analysis points: U.S. dollar index in consolidation and also forming a mini head-and-shoulders pattern that, if the neckline is broken, points to lower prices for the dollar that may last one or two sessions. Gold and silver are trading at resistance levels and are headline driven at this point. Anything could happen, so I remain on the side for now. Oil continues to show weakness but is trading within a major support level. I am keeping my eye on the intraday charts for a reversal pattern to play a bounce/rally this week. Bonds continue to rise with record low yields … this shows there is real panic and fear in the market, and lower prices may continue for another week or two. The volatility index, while elevated, is still overall trading low. This means more downside is possible as investors and baby boomers start to roll more of their money out of stocks and into bonds. S&P 500 sold down another 1% in futures trading after the closing bell — very bearish. This morning we have seen the dollar index pull back, and that has allowed the S&P 500 to recover the 1% post-market drop on Friday.
Those of you short the S&P 500 with me should tighten your stops in case there is a sharp rebound in the market. The position is up more than 9.5% in fewer than five days, and I want to lock in a good chunk of that with a stop at this morning’s high in the market or your low for your inverse fund, depending on what you are trading. Gold and silver are trading at resistance levels and are headline driven at this point, making it seem to investors that anything could happen.
After Friday’s weakness in stocks and commodities we continue to see that fear and selling pressure carry over into this week (see video here). European markets are trading lower by 1% to 2%, and I felt the U.S. market will naturally want to follow them down. The US market is down only 0.5%, so it is possible we see another 1% to 1.5% drop within the next 24 hours. …
Read more here: Bonds, Gold, Silver, S&P 500 and Oil Reaching Extreme Levels
Syrian violence claims 27 dead in run-up to truce
* Rebel army told Annan team it would honour truce * Clashes and bombardments kill 27, including soldiers * Each side says other steps up attacks before ceasefire * Record number of Syrian refugees flee to Turkey (Corrects death toll in headline) By …
Syria said to step up attacks before cease-fire deadline [Video]
Syria steps up offensives ahead of cease-fire
Syria steps up attacks ahead of cease-fire
NEW YORK (ETF Digest) —
It seems investors were biding their time Thursday ahead of a long holiday weekend and the unique Friday holiday release of the April Employment Report with markets closed. It would seem most investors don’t wish to expose themselves to potential market fluctuations when markets are closed.
Thursday’s Jobless Claims report continued the consistent trend of revising previous claims higher allowing for a headline “beat”. The data showed 357K claims vs 363K higher previously (adjusted higher from 359K). This led to headlines like: “Jobless Claims Lower” and so forth.
Consumer Discretionary (XLY) shares were much in focus as heavyweight McDonalds (MCD) led the sector higher overall. Financials (XLF), Materials (XLB) and Homebuilders (ITB) led the way lower.
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Read more: Waiting on Jobs Report: Dave’s Daily