lwsimmons.org

A compilation of brief news reports for Monday, July 8, 2013.

Saturday, October 23, 2021

China property giant Evergrande Group wired USD83.5 million in interest owed in an offshore bond from September 23 on Thursday, temporarily averting default, according to a Reuters source and Chinese newspaper Securities Times.

The wire to a Citibank fiduciary account following a 30-day grace period came after assurances by various members of the Chinese government, Reuters reported. At a Beijing forum Wednesday, Chinese Vice Premier Liu He described the risks as controllable, and chairman of the China Securities Regulatory Commission Yi Huiman said that while authorities needed to curb excessive debt more broadly by “improv[ing] the effectiveness of the constraint mechanism on debt financing”, the matter would be dealt with properly.

Once China’s top real estate developer, Evergrande had accumulated approximately USD305 billion in liabilities, two per cent of the Chinese gross national product, after “dwindling resources” cut its value by 80%, according to Reuters. September data revealed Chinese home sales by value fell by nearly 17% year-on-year, according to The Guardian, and fears over its default led to a slowdown in China’s third quarter GDP growth to a year low of 4.9%. Two sale negotiations with rival developers Hopson Development and Yuexiu, valued at USD2.6 billion and USD1.7 billion, respectively, were suspended, reportedly due to a lack of consent by the government of Guangdong province currently overseeing Evergrande’s restructuring.

News of Evergrande’s remittance caused its shares to rise by as much as 7.8% this morning after a two-week pause in trading for the anticipated sale of 50.1% in Evergrande Property Services Group, and offering some reprieve for bondholders, according to Reuters. Portfolio manager at GaoTeng Global Asset Management James Wong, interviewed by The Guardian, called the news “a positive surprise”, adding “[i]f Evergrande pays this time, I don’t see why it won’t pay the next time.” Jun Rong Yeap for IG Asia pte., interviewed by Bloomberg, said the report “overturned” the narrative “that Evergrande will face difficulty in securing cash ahead”.

Further missed payments are due October 29 and November 11 after similar 30-day grace periods; including yesterday’s USD83.5 million, nearly USD280 million is owed to bondholders.

Stocks have been down for many major Chinese developers: Reuters Wednesday reported year-to-date stock prices fell 87.8% for Sinic Holdings, currently in Fitch Ratings’ ‘restricted default’ after failing to make an October 18 bond payment valued, according to The Guardian, at USD246 million; 80.2% for Evergrande itself; 78.3% for E-House, 58.5% for Fantasia Holdings and 54.6% for Kaisa Group, which defaulted in 2015 and had bonds reach record lows.

Estimates of the Chinese real estate market’s size range from 16 to 25% of the Chinese gross domestic product, according to The Guardian. Chinese President Xi Jinping’s aim to transform the country’s economy from one of debt-fuelled “inflated” growth to one of improved “quality and returns” included imposing regulations on developers that limited their capacity to borrow. A Guardian comment piece from economist George Magnus published on October 15 made reference to China’s “ghost cities” and “rampant credit creation” that has given rise to high vacancy rates and the “financialisaton of housing”.

Thursday, July 1, 2010

A court in England, UK has jailed a policeman for ten months after he was convicted of defrauding his car insurance company.

Police Constable Simon Hood, 43, arranged for a friend who dealt in scrap metal to dispose of his Audi TT, then claimed it had been stolen.

Hood had been disappointed with the car’s value when he tried to sell it two years after its purchase in 2008. He arranged for friend Peter Marsh, 41, to drive the vehicle to his scrapyard in Great Yarmouth, Norfolk. Marsh then dismantled the vehicle with the intent of disposing of it, but parts were later found wrapped in bubblewrap at Ace Tyre and Exhaust Centre.

Marsh picked up the TT from outside nearby Gorleston police station. Records show mobile phone conversations between the conspirators that day in March, both before and after the vehicle was reported stolen. The pair denied wrongdoing but were convicted of conspiring to commit insurance fraud after trial.

The fraud was uncovered after Hood told former girlfriend Suzanne Coates of the scheme. It was alleged before Norwich Crown Court that he had confessed to her in an effort to resume their relationship. Coates said that after the pseudotheft, Hood told her “he didn’t want to look for it. He said it would be like looking for a needle in a haystack, which I thought was a bit strange.”

Shortly afterwards Hood suggested they should become a couple once more, she said; she challenged his version of events regarding the car: “He said he did it but I couldn’t tell anyone. He said he did it with Peter. Peter had a key and took the car away and it was going to be taken to bits and got rid of so it was never found.”

Hood was defended by Michael Clare and Marsh by Richard Potts. Both lawyers told the court that their clients had already suffered as a result of the action in mitigation before sentencing. Clare said Hood had resigned from the police after fifteen years of otherwise good service and risked losing his pension. “It is not a case where his position as a police officer was used in order to facilitate the fraud,” he pointed out. “His career is in ruins.” Hood is now pursuing a career in plumbing.

Potts defended Marsh by saying that he, too, had already suffered from his actions. His own insurers are refusing to renew their contract with him when it expires and his bank withdrew its overdraft facility. His business employs 21 people and Potts cited Marsh’s sponsorship of Great Yarmouth In Bloom as amongst evidence he supported his local community.

Judge Alasdair Darroch told Marsh that he did accept the man was attempting to help his friend. He sentenced Marsh to six months imprisonment, suspended for two years and ordered to carry out 250 hours of community service. He was more critical of Hood:

“As a police officer you know the highest possible standards are demanded by the public. You have let down the force. You knew throughout your career that policemen that get involved in serious dishonesty get sent to prison.”

Wednesday, June 14, 2006

Early indications are that between 5,000 and 6,000 litres of fuel leaked from a storage tank into a stream leading to Welcome Bay, which is near Wollaston Lake in the northeast part of the province.

The RCMP is still investigating cause of the spill. “We’re trying to determine the circumstances around the leak, whether it was an intentional act or whether it was due to a problem with the tank,” RCMP spokesperson Sgt. Brian Jones said.

Tuesday, January 19, 2010

Officials from France and Germany have warned people against using Microsoft’s Internet Explorer, citing security holes, and encouraged users to find an alternate browser to surf the Internet.

The government agency Certa, which oversees cyber attacks and security, warned against using all versions of Internet Explorer. Officials from Germany had warned last Friday against the browser when malicious code was published on the Internet.

“Pending a patch from the publisher, Certa recommends using an alternative browser,” Certa said in a statement.

Graham Cluley, from the security firm Sophos, said that the weakness had only been exploited in IE6, but he noted that “Microsoft themselves admit there is a vulnerability, even in IE8.” He noted that, since more information into the malicious code is now available on the internet, hackers could alter the code to make it affect other versions of the browser.

The head of Microsoft’s security and privacy department, however, commented that “the risk is minimal. There are very few of them out there,” adding that in order for a computer to be infected by a virus, it would have to be running IE6 and be on a compromised website. “If you look at other browsers, it’s likely they will have other vulnerabilities,” he said to the BBC. “We feel strongly that IE8 is most secure browser on the market.”

Microsoft encouraged users to upgrade to IE8, which they described as the “most secure browser on the market”.

The firm is working on a patch to fix the problem, however, a spokesman said there wasn’t any specific timeframe for its release.

Friday, April 27, 2012

The US state of Florida has repealed an order by the state’s governor to drug test all state employees and new hires to state agencies. The Miami federal court has said that the order is unconstitutional, violating the ban upon ‘unreasonable’ search and seizure.

Last year, Governor Rick Scott ordered 80,000 drug tests on state employees. He is a former health care executive and objects to the ruling against drug testing. “As I have repeatedly explained, I believe that drug testing state employees is a common sense means of ensuring a safe, efficient and productive workforce,” Scott said yesterday.

Howard Simon, executive director of the A.C.L.U. of Florida, said, “The governor can’t order the state to search people’s bodily fluids for no reason.”

Governor Scott is also dealing with a drug testing-related lawsuit for recipients of welfare.

Monday, March 15, 2010

An undercover investigation by Naperville, Illinois law enforcement has led to the arrest last Thursday of four people allegedly involved in prostitution. The stings came after police received tips that people were using websites like Craigslist and Backpage.com to sell sexual performances in Naperville hotels. 

Patricia H. Scoleri of Naperville was arrested after an unidentified neighbor observed consistently suspicious activity at Scoleri’s home. Traffic was unusually heavy and consisted mostly of luxury cars in an otherwise quiet, middle-class neighborhood. Also, the visitors were mainly middle-aged men, and an odd string of lavender-colored lights were hung on the front window.

Police say Scoleri worked alone. She was arrested at 2 p.m. local time (2000 UTC) and is charged with violation of anti-prostitution laws, anti-cannabis laws, and the Massage Licensing Act. She apparently has four children, but the Illinois Department of Children and Family Services has neither contacted her nor received a police report on her.

The second sting occurred at 5:30 p.m the same day (2330 UTC) and resulted in the arrest of Chicago resident Tonya M. Adams. She is charged with prostitution and driving without a license. Another sting about an hour later resulted in the arrests of Jessica M. Walley, a Skokie resident, and Mark A. Williams, a self-admitted Schaumburg gang member. “Walley was charged with prostitution and unlawful possession of cannabis. Williams was charged with pimping, obstructing a peace officer, driving with a suspended license and driving without insurance,” reports WBBM News Radio 780.

All four suspects are free, having paid the required ten percent of their $1,000 bail. They may face additional charges related to crack cocaine discovered during the police investigation. Arraignment is scheduled for next month at the DuPage County Circuit Courthouse in Wheaton.

Friday, July 17, 2009

According to the Pew Research Center, a non-advocacy organization that evaluates issues, attitudes and trends shaping the political landscape of the United States, centrism is on the rise in America. According to Pew, the number of Americans identifying themselves as independents has reached the highest level in 70 years.

Recently 36% of Americans say they are independents, 35% identify as Democrats, while 23% see themselves as Republicans. Some people are abandoning the major parties, re-registering as independent or joining third parties.

One of these third parties are the Modern Whig Party (MWP), who have enjoyed phenomenal growth over the past year; from just 3,000 members last summer to 30,000 now. With the Party’s commitment to “fiscal responsibility” and “bold social progression”, several conservative Democrats and centrist Republicans have been attracted to it.

Wikinews reporter Joseph Ford recently spoke with the Modern Whig Party’s chairman, Mike Lebowitz, about the MWP’s history, present state and future prospects. “Our membership is comprised of people from all parts of the mainstream political spectrum,” Lebowitz explains. He says that the MWP has “pragmatic, realistic, and mainstream” approaches to the numerous issues facing America today.

“A number of print and broadcast media outlets have even gone so far as to proclaim that the Modern Whig Party is “potentially viable,” and “makes sense”,” Lebowitz points out. “We are building this organization realistically, methodically and gradually in an effort to get this right.”

He went on to say much more — including why he thinks you should consider leaving the GOP or the Dems for the MWP — in the interview below.

Sunday, October 10, 2010

Security officials in Pakistan have stated that “[a]t least seven militants” have been killed by suspected US drone strikes. According to reports, US aircraft fired four missiles in North Waziristan, which killed seven or eight rebels and destroyed two cars parked outside a building.

An intelligence official informed AFP that at least seven militants were killed in the incident while three others were wounded. Two other officials from Miranshah confirmed the reports. The identities of those killed have not been confirmed. Officials said the area was a stronghold of a rebel group headed by Hafiz Gul Bahadur, which regularly attacks NATO officials in the country.

The first of the two attacks occurred when two missiles fired at a pair of cars beside a camp located near Mir Ali, North Waziristan, killed six people. The missiles destroyed a nearby compound as well as the vehicles according to officials. Officials added that two suspected rebels were killed by another drone which was fired near the bank of a river close to the camp. These were the ninth and tenth drone strikes carried out in the month of October. September had seen twenty one such strikes, which was the highest number of monthly airstrikes in Pakistan.