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Friday, October 10, 2008

Stock markets across the world have fallen sharply with several seeing the biggest drop in their history.

Asian markets saw the biggest sell-off. The Nikkei dropped 9.62% to reach a 20 year low. Japan also saw a collapse of a mid-size insurance company, Yamato Life Insurance Company, which declared bankruptcy. The Hang Seng, which was one of the few markets that was positive yesterday, fell 7.19%. Australia dropped by 8.4% and South Korea saw a 9% fall.

In Europe, markets dropped at the open with the FTSE losing 11%. They have recovered only sightly with all European markets losing more than 5%. The European sell off was more about the Asian lows then any specific news. European banks and financial institutes saw the most selling. Also, oil related companies saw large drops as an result of an expected decrease in oil consumption.

The U.S. markets opened lower with the Dow Jones Industrial Average falling below 8,000, before recovering slightly. President George W. Bush made an address on the economy and said markets were being “driven by uncertainty and fear.”

Oil has seen losses of more than US$6 in trading with the current price of a barrel of oil less than $80. This is a year low for oil. News also came out that OPEC will hold an emergency meeting on November 18 to discuss the falling price of oil.

Charities, such as Cats Protection, today said that they have lost much of their funds in collapsing banks. Cats Protection had a total of £11.2 million saved in the now-collapsed Kaupthing bank.

The British National Council for Voluntary Organisations said that 60 of its 6,500 have lost money due to the collapse of banks.

The Dow Jones Industrial Average fell to its lowest level in five years at 8,579.19, falling 679 points in one day. This, at 7.3%, is the eleventh largest percentage fall in the history of the index. The growth then continued, with the index being up over 150 points on the start of the day at one point.

The index, did however, recover, and as of 19:30 UTC was up 17.68 points, or 0.21%, pushing the index up to almost 8600.

Peter Cardillo, chief market economist at Avalon Partners, commented on these massive falls. “What we’ve seen here was one big margin call that just kept feeding on itself, so the opposite could happen. But you need a catalyst,” he said. “I’m more convinced now than ever that this market has made a bottom. The capitulation came when we breached 8,000,” he continued. “It doesn’t mean we can’t go back and revisit that level.”

The UK’s FTSE 100 index fell dramatically to close below 4000, in the index’s worst week in history. This is despite the fact that just a few days ago the index was above 5000, and the index peaked above 5500 in September.The FTSE 100 index has fallen by 41% this year.

Barclays Wealth analyst Henk Potts commented on this massive fall. “We are drowning in a sea of red numbers,” he claimed. “Investors are concerned about the exacerbation of the credit crunch and the gloomy forecasts for economic growth. The reality is that most investors have been spooked by the sheer pressure that the credit crunch is putting on the global economy.”

The Japanese Nikkei 225 has recorded it’s third biggest drop in history with a massive sell-off in the exchange that has resulted in USD 250 billion being knocked of the index’s value.

Toyota, which is the second largest carmaker in the world, fell by the largest amount in 21 years, while Elpida Memory, the world’s largest manufacturer of computer memory, dropped in value to a record low.

Masafumi Oshiden, a fund manager in Toyota commented on the drop.”It’s capitulation,” he said. “There are lots of forced sellers. If you’re a fund that’s going bust you need to close out all your positions.”

George W. Bush commented on the financial situation earlier today. “Over the past few days, we have witnessed a startling drop in the stock market — much of it driven by uncertainty and fear,” he said. “This has been a deeply unsettling period for the American people. Many of our citizens have serious concerns about their retirement accounts, their investments, and their economic well-being.”

Bush then continued by promoting the government’s plan’s to get through the crises. “Here’s what the American people need to know: that the United States government is acting; we will continue to act to resolve this crisis and restore stability to our markets. We are a prosperous nation with immense resources and a wide range of tools at our disposal. We’re using these tools aggressively.”

Gordon Brown, the UK Prime Minister, also spoke on the economy. “I think we quickly realised that we cannot solve the problems we have got as a result of the sub-prime market collapse simply by improving liquidity,” he said speaking in Birmingham to business leaders earlier today. “That would simply not be enough to deal with the bigger problem of rebuilding the banking system for the future and restoring trust is a fundamental element of that.”

Jim Flaherty, the Canadian minister for finance, also commented today on the recent incidents in the economy. “It is important to underline that Canada’s banks and other financial institutions are sound, well capitalized and less leveraged than their international peers,” he claimed. “Our mortgage system is sound. Canadian households have smaller mortgages relative both to the value of their homes and to their disposable incomes than in the U.S.”

“”However, it is becoming increasingly clear that the continuing disruption of global credit markets, which has been severe and protracted, is making it difficult for our financial institutions to raise long-term funding. This is beginning to affect the availability of mortgage loans and other types of credit in Canada,” he continued. “The Government has therefore decided to act to address the current scarcity of private sector lending to Canadian mortgage markets and lending markets overall. This is going to make loans and mortgages more available and more affordable for ordinary Canadians and businesses.”

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.