financializer news A weblog highlighting financial topics making news in the international media.

: Economists and investors are split on whether a U.S. rate increase is in the cards when the Federal Market Open Committee concludes its regular meeting on Thursday, according to The Toronto Star. The benchmark Fed funds rate has been at 0.25 per cent since December 2008. Though not a sure bet, a U.S. interest rate hike this week – the first in nearly seven years - would signal the world largest economy is back in business That would be good news for Canada, helping drive higher exports, economists said. The U.S. economy is strong enough to allow them to step away from emergency low interest rate levels, said Jennifer Lee, senior economist with BMO Capital Markets. The U.S. unemployment rate has fallen to 5.1 per cent, new home construction and auto sales are up. On the other hand, given the weakness in emerging markets, it wouldn’t come as a complete shock if they decided to hang back a little bit. (news.financializer.com). As reported in the news.

: Financial markets have been zigzagging with anxiety as investors have tried to divine whether the Fed will start phasing out the period of extraordinarily low borrowing rates it launched at a time of crisis in 2008, according to MSNBC. With the job market now considered essentially recovered from the Great Recession, many economists say it time to start edging toward normal rates. Unless they don’t. Others argue that many other factors – from a sharply slowing China to the tumult in markets to persistently less-than-optimal inflation – raise serious concerns. It kind of wild that we still don’t know what they are going to do so close to the meeting. They say the Fed should wait, until later this year or even until 2016. (news.financializer.com). As reported in the news.

: Economists and investors are split on whether a U.S. rate increase is in the cards when the Federal Market Open Committee concludes its regular meeting on Thursday, according to The Toronto Star. The benchmark Fed funds rate has been at 0.25 per cent since December 2008. Though not a sure bet, a U.S. interest rate hike this week – the first in nearly seven years - would signal the world largest economy is back in business That would be good news for Canada, helping drive higher exports, economists said. The U.S. economy is strong enough to allow them to step away from emergency low interest rate levels, said Jennifer Lee, senior economist with BMO Capital Markets. The U.S. unemployment rate has fallen to 5.1 per cent, new home construction and auto sales are up. On the other hand, given the weakness in emerging markets, it wouldn’t come as a complete shock if they decided to hang back a little bit. (news.financializer.com). As reported in the news.

Julia Gillard: Malcolm Turnbull, from 15/9/15Tony Abbott, from 18/9/13Kevin Rudd, second time, from 27/6/13Julia Gillard, from 24/6/10Kevin Rudd, first time, from 2/12/07. © AAP 2015Politics Email your news tips Do you have any news photos or videos Career News: Ten ways to reach your definition of success - seeklearning.com.au Property news: NRL finals battle of the suburbs - realestate.com.au Career news: Why happiness at work matters - news: What renters are looking for this spring - news: Malcolm Turnbull, from Point Piper to The Lodge - realestate.com.au , according to Nine News Australia. The Reserve Bank has cut the cash rate to a record low in an attempt lift economic activity.* Under Rudd initial leadership, inflation was higher at 2.9 per cent per annum. * Turnbull also begins his tenure with a relatively high jobless rate of 6.2 per cent, compared to 5.7 per cent went Abbott took office.* During the Rudd-Gillard years unemployment rates were similar or much lower again.* When Rudd won office, unemployment was a very low 4.2 per cent, reflecting the strong economic momentum driven by the Howard government. * Interest rates have been on a downward trajectory since the GFC, mostly recent due to sluggish growth.* Turnbull starts his leadership with an historically low cash interest rate of 2 per cent.* Rudd began his leadership on 6.75 per cent and Julia Gillard on 4.5 per cent. (news.financializer.com). As reported in the news.

: Add to that a still-hefty budget deficit and escalating government debt and the picture of the economic challenge for Turnbull and his new team is stark, according to The Guardian. This is especially the case when the next election is just a year away where the economy will almost certainly be the dominant issue for voters. Related:Malcolm Turnbull takes first question time as prime minister – politics live The prime minister, and his likely new treasurer, Scott Morrison, take over the economic levers at a time when economic growth is sluggish, unemployment is high, real wages are falling and consumer and business confidence are weak. One major shortcoming of Tony Abbott and his treasurer Joe Hockey was their failure to articulate the challenges before the Australian economy, instead continually reverting to slogans about jobs and growth and stopping the boats . This made it impossible for them to outline a framework of essential economic reform to deal with those challenges and to set the economy on a path to growth and lower unemployment. For the lost two years of economic management, Abbott and Hockey will stand condemned. The fact that the Abbott reform agenda was like Old Mother Hubbard cupboard – bare – compounded their dismal failure. (news.financializer.com). As reported in the news.

Joe Hockey: He can start by telling the truth about the economy, according to Australian Broadcasting Corporation. The talk has been of a glass half-full under Treasurer Joe Hockey, even a glass brimming over. Related Story: Turnbull topples Abbott: What your mood Related Story: Seven things to know about Malcolm Turnbull Related Story: As it happened: Turnbull sworn in as Prime Minister Map: Australia "We need to respect the intelligence of the Australian people," declared Malcolm Turnbull as he publicly unveiled his leadership challenge. The creation of 300,000 jobs. All is well. Higher wages. (news.financializer.com). As reported in the news.

: Malcolm Turnbull, from 15/9/15Tony Abbott, from 18/9/13Kevin Rudd, second time, from 27/6/13Julia Gillard, from 24/6/10Kevin Rudd, first time, from 2/12/07. © AAP 2015Politics Email your news tips Do you have any news photos or videos Career News: Ten ways to reach your definition of success - seeklearning.com.au Property news: NRL finals battle of the suburbs - realestate.com.au Career news: Why happiness at work matters - news: What renters are looking for this spring - news: Malcolm Turnbull, from Point Piper to The Lodge - realestate.com.au , according to Nine News Australia. The Reserve Bank has cut the cash rate to a record low in an attempt lift economic activity.* Under Rudd initial leadership, inflation was higher at 2.9 per cent per annum. * Turnbull also begins his tenure with a relatively high jobless rate of 6.2 per cent, compared to 5.7 per cent went Abbott took office.* During the Rudd-Gillard years unemployment rates were similar or much lower again.* When Rudd won office, unemployment was a very low 4.2 per cent, reflecting the strong economic momentum driven by the Howard government. * Interest rates have been on a downward trajectory since the GFC, mostly recent due to sluggish growth.* Turnbull starts his leadership with an historically low cash interest rate of 2 per cent.* Rudd began his leadership on 6.75 per cent and Julia Gillard on 4.5 per cent. (news.financializer.com). As reported in the news.

: DPRK is the acronym for North Korea official name, the Democratic People Republic of Korea, according to Asahi Shimbun. The country often makes threats against the United States and South Korea. It marked the first acknowledgement since then that the plant, which has been the source of fissile material used in the country atomic weapons program, is operational, experts said. "All the nuclear facilities in Yongbyon including the uranium enrichment plant and 5 MW graphite-moderated reactor were rearranged, changed or readjusted and they started normal operation," KCNA news agency said, quoting the director of its atomic agency. "If the United States and other hostile forces persistently seek their reckless hostile policy toward the DPRK and behave mischievously, the DPRK is fully ready to cope with them with nuclear weapons any time," the director was quoted as saying. Innovations have been made to improve nuclear weapons "in quality and quantity as required by the prevailing situation," the director was quoted as saying. Recent satellite imagery of the Yongbyon complex indicated new activity at two areas there: the main reactor and a chemical laboratory, where spent fuel can be converted to fuel for nuclear arms, according to 38 North, a website run by the U.S.-Korea Institute at Johns Hopkins University. Late on Sept. 14, North Korea space agency said it was readying a new satellite for launch, indicating it may fire an upgraded long-range ballistic missile timed to a national anniversary next month. (news.financializer.com). As reported in the news.

: The guideline says the government will consolidate and clean up certain SOEs, saying "decisive results" are expected by 2020, according to Xinhua China. Give us the key points of the reform package. Q1. A1. But a lot of them lack innovation and less resilient in the face of an economic slowdown. Right, Chinese SOEs enjoyed a dominant position in the market with huge resources, including easier access to loans, and more favorable policies like subsidies. (news.financializer.com). As reported in the news.

Federal Reserve: The Dollar Index, which gauges the dollar against a basket of 16 currencies, was recently up 0.1% at 88.30. The index traded as low as 87.99 earlier in the day, according to Wall Street Journal and The dollar turned higher against other currencies Tuesday, as positive economic data boosted traders optimism ahead of a closely watched Federal Reserve meeting. U.S. consumers boosted their spending in August, giving the Federal Reserve one more... (news.financializer.com). As reported in the news.

President Mahinda Rajapaksa: Then, unexpectedly, a presidential election in January toppled the Rajapaksas. Parliamentary elections last month.., according to Wall Street Journal and Sri Lankans can hardly believe their luck. Until late last year, then President Mahinda Rajapaksa and his family seemed destined to remain in power for years to come. Sri Lanka had all the symptoms of illiberal democracy : authoritarian politics, rampant corruption, ethnic chauvinism and a crony-dominated economy. (news.financializer.com). As reported in the news.

state-owned enterprise reforms: The administration of President Xi Jinping began working on state-owned enterprise reforms in 2014, and 2015 was seen as the year in which the reforms were set to pick up speed, according to Asahi Shimbun. These reforms have been underpinned by three main pillars: the promotion of a system of mixed ownership in which part of the shares and capital of state-owned enterprises are sold off to the private sector; the reorganization of large state-owned enterprises into holding companies called state-owned capital investment companies, and the development of a state-owned capital management system whereby the efficiency of state-owned capital can be improved; and in addition to the repositioning of state-owned capital in accordance with the level of its public nature, the development of modern corporate systems for the improvement of corporate governance. However, the rapid fall in share prices has brought reform progress to a halt. The mixed ownership system is being touted as a win–win relationship that will benefit both state-owned enterprises and private-sector enterprises, and the initiative is gaining ground among central and local governments. In terms of local government initiatives, Guangdong province has set itself a high target of converting 80 percent of its state-owned enterprises into mixed ownership enterprises by 2020, raising 100 billion yuan of private-sector capital in 13 industries, including traffic and transportation, construction materials, metallurgy, minerals, electrical power, travel, finance and investment, medical and sanitation. In the case of a major oil company under central government jurisdiction, 30 percent of the shares of a subsidiary handling retail products were sold off, raising a total of 107.1 billion yuan from 25 domestic and foreign investors. (news.financializer.com). As reported in the news.

reform package: China has about 150,000 state-owned enterprises, which hold over 100 trillion yuan in assets and employ more than 30 million people, according to Xinhua China. Thus, any reform to the sector will have a significant effect on the economy as a whole. "Our company has been listed on the stock market. The package of reforms released on the weekend aim to separate direct administrative interference from market operations, while improving efficiency and countering downward pressure on growth. Yet we still receive many government orders that ask us to follow certain guidelines. The reform package aims to tackle problems such as low efficiency and unclear management structure in some state-owned enterprises. Some of the directives can not be practiced in market competition," said a major state-owned enterprise chief executive, who requested anonymity. (news.financializer.com). As reported in the news.

: China has about 150,000 state-owned enterprises, which hold over 100 trillion yuan in assets and employ more than 30 million people, according to Xinhua China. Thus, any reform to the sector will have a significant effect on the economy as a whole. "Our company has been listed on the stock market. The package of reforms released on the weekend aim to separate direct administrative interference from market operations, while improving efficiency and countering downward pressure on growth. Yet we still receive many government orders that ask us to follow certain guidelines. The reform package aims to tackle problems such as low efficiency and unclear management structure in some state-owned enterprises. Some of the directives can not be practiced in market competition," said a major state-owned enterprise chief executive, who requested anonymity. (news.financializer.com). As reported in the news.

: Some 50 international investors received approval to trade on the exchange in the past six months, and are now awaiting the end of sanctions, he said, according to Business Week. Iran and six countries, including the US, ended a 12-year standoff in July by signing an agreement limiting Iran nuclear program in exchange for the removal of trade and other restrictions. We had a lot of requests and a lot of visitors from abroad, said Hassan Ghalibaf Asl, the chief executive officer of the Tehran Stock Exchange, in an interview at his office in the Iranian capital. Under the accord, Iran will be freed from economic and financial sanctions once United Nations monitors verify it has curbed its nuclear activities and addressed suspicions that it sought to develop atomic weapons in the past. Relief from sanctions may accelerate economic growth in the nation of 77 million people by removing barriers to Iran oil exports and ending the isolation of its banks from the global financial system. That could happen by early 2016. (news.financializer.com). As reported in the news.

: The administration of President Xi Jinping began working on state-owned enterprise reforms in 2014, and 2015 was seen as the year in which the reforms were set to pick up speed, according to Asahi Shimbun. These reforms have been underpinned by three main pillars: the promotion of a system of mixed ownership in which part of the shares and capital of state-owned enterprises are sold off to the private sector; the reorganization of large state-owned enterprises into holding companies called state-owned capital investment companies, and the development of a state-owned capital management system whereby the efficiency of state-owned capital can be improved; and in addition to the repositioning of state-owned capital in accordance with the level of its public nature, the development of modern corporate systems for the improvement of corporate governance. However, the rapid fall in share prices has brought reform progress to a halt. The mixed ownership system is being touted as a win–win relationship that will benefit both state-owned enterprises and private-sector enterprises, and the initiative is gaining ground among central and local governments. In terms of local government initiatives, Guangdong province has set itself a high target of converting 80 percent of its state-owned enterprises into mixed ownership enterprises by 2020, raising 100 billion yuan of private-sector capital in 13 industries, including traffic and transportation, construction materials, metallurgy, minerals, electrical power, travel, finance and investment, medical and sanitation. In the case of a major oil company under central government jurisdiction, 30 percent of the shares of a subsidiary handling retail products were sold off, raising a total of 107.1 billion yuan from 25 domestic and foreign investors. (news.financializer.com). As reported in the news.

: And the result announced Monday put an end to consecutive budget deficits by Conservative governments since 2008, according to The Toronto Star. This is incredibly good news. The small surplus marked a reversal of the Conservatives’ prediction in April that the final numbers for last year would show a $2-billion deficit. Look, in spite of all the problems of the world, this country has a balanced budget, said Harper, who on Thursday will take part in a leaders debate on the economy. Direct spending on federal government programs decreased last year by $1.6 billion from the previous year, the finance department reported. We are starting this year in an even better position than we thought we would, he remarked Monday at an event in Kamloops, B.C. The budget surplus was partly attributed to lower-than-expected public debt charges in 2014 because of lower interest rates and lapsing of government spending, a controversial trend that takes place when departments do not use all the money approved for the year. (news.financializer.com). As reported in the news.

: The Borsa Istanbul Banks Index declined 0.7 per cent at the midday break after Citigroup London-based analyst Simon Nellis lowered his recommendation for Turkiye Garanti Bankasi AS, Turkiye Halk Bankasi AS and Yapi ve Kredi Bankasi AS to sell from neutral, according to Business Week. The Borsa Istanbul 100 Index climbed 0.1 per cent. The currency fell as much as 0.8 per cent to 3.0687 per dollar before trading 0.6 per cent lower at 1:13 p.m. in Istanbul. The lira has slipped 24 per cent this year as Turkey heads for its second election in six months and after a three-year truce with the Kurdistan Workers’ Party, or PKK, broke down. The prospect of higher US borrowing costs as early as this week has spurred a flight from risky assets. The country current-account deficit raises its reliance on capital inflows, making it among the most vulnerable economies to a US interest rate increase. (news.financializer.com). As reported in the news.

: As it had happened in the first debate last week which also included the leaders of the smaller parties elected in the previous parliament, Tsipras defended his seven-month government record requesting voters to give SYRIZA an outright majority in the new assembly to change Greece, according to Xinhua China. Responding to repeated calls of Meimarakis for the formation of the wider possible coalition government after the polls, he appeared confident that absolute majority is within reach for SYRIZA. The former Premier dismissed the idea of a grand coalition with the conservatives as "an unnatural alliance" due to fundamental differences in key issues. "There will either be a progressive government or a conservative government," Tsipras stressed, attempting to present SYRIZA as a new force that fights an old, corrupted status quo. Former Prime Minister and leader of the Radical a Left SYRIZA party Alexis Tsipras faced Evangelos Meimarakis, President of the conservative New Democracy party at the public broadcaster ERT, as all recent opinion surveys showed that the two parties were running neck and neck falling far short of gaining absolute majority in the next assembly. Meimarakis for his part noted that SYRIZA is not actually a new party in Greek politics and accused Tsipras of inaction in tackling corruption since the party assumed office in the January 25 general polls. He promised to "unblock" all major projects if he is elected Prime Minister on Sunday. "We want investments, but we expect investors to respect the laws," Tsipras replied when asked to comment on the protest of miners outside ERT premises during the debate. The conservative leader accused Tsipras and SYRIZA of breaking a long string of pledges made to Greek people before the previous elections and of causing more damage to an ailing economy that had started to recover. "Tsipras and his government pushed away investors," Meimarakis said, pointing to delays in the privatization of ports and airports. (news.financializer.com). As reported in the news.

: Investors have been worried about the prospect of the first interest rate rise in the US since the global financial crisis, when the Federal Reserve meets this week, according to Australian Broadcasting Corporation. The Commonwealth Bank said it had raised just over $5 billion by selling new shares to investors as part of new regulations requiring big banks to bolster their reserves against a financial crisis. The All Ordinaries Index rose half a per cent or 24 points to 5,121, while the ASX 200 closed up 25 points to 5,097. Commonwealth Bank shares have fallen by 58 cents to $74.55. There were more worrying economic figures from China. Macquarie shares rose by 2.3 per cent or $1.77 to $77.57 after it predicted first-half profit could rise by 40 per cent. (news.financializer.com). As reported in the news.

: Many of these first responders and civilians breathed the toxic air at Ground Zero, and suffered severe illnesses, including cancers, because of their service, according to MSNBC. It was congressional Republicans who tried to derail the bill, and who nearly succeeded in killing the entire endeavor. The point of the measure, as a *New York Daily News* editorial explained, was to provide medical coverage and financial assistance to members of the civilian army who rallied to serve their country and city in the dark days after 9/11. Eventually, however, the then-Democratic majority, before the GOP takeover of the House in 2011, managed to overcome Republican opposition, pass the Zadroga 9/11 bill, and send it to the White House for President Obama signature. The bad news is, the policy was put in place for five years – and its time is nearly up. *New York* magazine published this report late last week: Although the country is speckled today with events remembering what happened 14 years ago at the World Trade Center, one memorial of sorts is being saved for next week. The good news is the legislation allotted billions of dollars for medical treatment and compensation for those affected. (news.financializer.com). As reported in the news.

: Alaskans of all political persuasions cheered the decision to return the mountain to its initial, Native Alaskan name of Denali, while both Democrats and Republicans in Ohio bemoaned what they saw as disrespect for one of the Buckeye State native sons – President William McKinley, who was elected in 1896 and assassinated in 1901. * Obama renames Mt, according to MSNBC. McKinley* The decision wasn’t the first to trigger a national conversation about the propriety of such renamings or displacement of public monuments. McKinley, the highest mountain in the United States, proving that even in this era of political polarization, some issues still go beyond party affiliation. The same week that McKinley became Denali, the University of Texas was removing a statue of Jefferson Davis from a place of honor on its main campus. Of course, the Texas-sized elephant in the room remains the large statue in front of the State Capitol, honoring only the Confederate war dead, on which Davis stands alone at the top. It was deemed inappropriate to continue honoring the former head of the Confederate States of America, a man who did his part to trigger a war to maintain chattel slavery that ultimately cost hundreds of thousands of lives. (news.financializer.com). As reported in the news.

: The action plan also calls for a low tax approach aimed at creating jobs and growth, according to The Toronto Star. The Forum poll, conducted Sept. 9 and 10, found that fewer than one quarter agree the action plan has been a success. Known as the Economic Action Plan, Conservative Leader Stephen Harper government has invested heavily promoting the policy, which has as one of its key features the goal of balancing the federal budget. Twenty five per cent of respondents don’t know if it been a success, the poll found. They have spent literally hundreds of millions of dollars advertising the benefits of t he Economic Action Plan, all, seemingly, to no visible effect, he added. This is one case where the government reliance on massive advertising campaigns didn’t have the desired effect, Forum president Lorne Bozinoff said referring to the Conservatives’ efforts to promoting their action plan. (news.financializer.com). As reported in the news.

AEST: And the Australian share market looks set to open lower after US and European bourses fell with investors cautious ahead of the Federal Reserve policy meeting this week, according to Nine News Australia. At 0645 AEST on Tuesday, the September share price index futures contract was down 15 points at 5,076. At 0630 AEST on Tuesday, the local unit was trading at 71.38 US cents, up from 70.90 cents on Monday. PARIS - The OPEC oil cartel have trimmed its forecast for global oil demand next year as emerging markets, which have been the motor of world growth in recent years, splutter. MOSCOW - Russia antitrust authority has found US internet giant Google guilty of unfairly keeping rival services off mobile devices in a probe demanded by local search engine provider Yandex. MOBILE, Alabama - European jetmaker Airbus has inaugurated its first US plant in a move to wrest away a chunk of Boeing domination of the domestic aircraft market including lucrative Pentagon contracts. (news.financializer.com). As reported in the news.

Mr Obeid: He has had findings made against him by ICAC and is now suing former ICAC Commissioner David Opp, the then counsel assisting Geoffrey Watson and the state of NSW."I don't feel shame, but I do feel sorry for the taxpayer," Mr Obeid said, according to Nine News Australia. Not far behind Mr Obeid is former Mining Minister Ian McDonald, found by ICAC to be corrupt. Former Labor minister Eddie Obeid has cost the most to taxpayers, with the legal bills totalling $1.3 million. Mr McDonald legal representation before the Commission also came with a $1.3 million bill. Labor MP Joe Tripodi and Liberal MP Chris Hartcher managed to accumulate a legal bill of more than $500,000 each, which NSW taxpayers have had to pay. There are also a number of MPs who have been before ICAC where a finding is yet to be handed down. (news.financializer.com). As reported in the news.

: Dream on, according to The Guardian. Related:Chinese economy is under pressure but will not slump, says premier Li Keqiang The bears, it goes without saying, have a dreadful record. A new problem is all too often seen as an intimation of impending crisis, a hard landing, consequent social instability, and perhaps the eventual collapse of the regime. After 35 years of extraordinary economic growth, China is still growing at 7% annually. One of the great weaknesses of so much western economic commentary is that it fails to look much beyond the next quarter’s, or even month’s, results. True, that is lower than before, but still at a rate that dwarfs anything in the west. (news.financializer.com). As reported in the news.