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

Jim Crow: He spoke publicly in favor of rights for women of all races, according to CNN. He had the ear of President Abraham Lincoln but sometimes complained that Lincoln was moving too slowly on emancipation. Douglass rose to serve in several prominent positions in government, ran an abolitionist newspaper, fought Jim Crow laws and wrote three autobiographies that have become classics. He went on to call Lincoln the nation "greatest president." On Monday, the first day of Black History Month and more than a century after his death, Douglass was honored with the Google Doogle of the day. As the nation first black president time in office comes to a close, the issues of police treatment of African-American men and women, economic opportunity, the prison system, inclusion in K-12 schools and higher education, and even the Oscar nominations are increasingly subjects of discussion and debate. Today #Google Doodle honors the life and work of Frederick Douglass → https://t.co/3Ya7c8hODj #Black History Month Google February 1, 2016 Douglass' struggle still resonates. (news.financializer.com). As reported in the news.

China economy: A reading above 50 indicates expansion, while a reading below 50 reflects contraction, according to Xinhua China. The index, below the market forecast of 49.6, fell to its lowest level since August 2012, as China economy is seeking new growth engines amid a housing market slowdown and a campaign to cut industrial overcapacity. The purchasing managers' index came in at 49.4, down from December 49.7, according to the National Bureau of Statistics and the China Federation of Logistics and Purchasing. NBS statistician Zhao Qinghe attributed the retreat to slowing factory activity ahead of the Chinese New Year holidays in early February, as well as the trimming of industrial capacity. China stock market opened lower following the data release, with the benchmark Shanghai Composite Index down 0.24 percent at 2,730.98 points. The economic slowdown both at home and abroad also affected aggregate demand and foreign trade growth, Zhao explained. (news.financializer.com). As reported in the news.

Russia: Turkey did not sign the agreement for 2016, according to ASMAP. The Russian Transport Ministry is taking measures to resolve the problem — proposals have been sent to the Turkish side, ASMAP said, according to The Moscow Times. Later on Monday Russia Transport Ministry announced that it would reduce the quantity of mutual permits on cargo transportations from Turkey to Russia due to a fall in the flow of goods, the RIA Novosti news agency reported. Russian truckers have lost the right to transport cargo through Turkish territory because a prior agreement between the two counties expired on Jan. 31. Last November Russia introduced a number of economic sanctions against Turkey following the downing of its warplane near the Turkish-Syrian border. (news.financializer.com). As reported in the news.

Ukraine: Hong Kong topped the ranking — followed by Singapore and New Zealand, according to The Moscow Times. The index said Russia scored low on rule of law issues such as property rights and freedom from corruption, but higher on regulatory efficiency and limited government. It scraped in just above the category of "repressed" nations such as Belarus in the 157th spot and Ukraine at 162nd. The country scores fell or stayed the same in every category, and the ranking said freedom had been eroded by Moscow policy of import replacement and the rising presence of state-owned lenders in the banking sector. Russia economy is currently in the grip of a recession due in part to a slump in global oil prices and sanctions imposed over the crisis in Ukraine in 2014. (news.financializer.com). As reported in the news.

China: While China may have taken a few numerical steps backward recently, overcapacity is slashed and outdated practices are laid to rest in preparation for some giant strides forward, according to Xinhua China. STARBUCKS "INDEX" Walking into any Starbucks in Beijing, people will hardly be overwhelmed by signs of economic slowdown. From the number of Starbucks stores to office rentals, a set of little-known "indexes" point to foreign business confidence in China economy. The queues are long and the seats are all occupied: those middle class customers don't bat an eye at paying 30-yuan for a simple coffee latte. Since its first store opened doors in China in 1999, Starbucks has expanded to more than 1,900 shops in 99 cities, making China the chain biggest market outside the United States. China enthusiasm for consumption, like Starbucks' appetite for expansion, knows little bounds. (news.financializer.com). As reported in the news.

Su Jia-chyuan: DPP presidential candidate Tsai Ing-wen also won a massive victory over her Nationalist rival and a third party candidate, becoming Taiwan first woman president-elect, according to Asahi Shimbun. She takes office in May when current Nationalist President Ma Ying-jeou steps down. Su Jia-chyuan on Monday became the first DPP speaker of the 113-seat body after the party trounced the ruling Nationalists in the polls, winning 89 seats and its first parliamentary majority. Su is a veteran legislator, former interior minister and close Tsai ally. The DPP rode a wave of discontent with the slowing economy and stagnant wages, along with Ma China-friendly policies that many say benefit a small class of elites while threatening the economic future of the younger generation. He expected to lead efforts to reform the body, formally known as the Legislative Yuan, following complaints over logjams in passing legislation and too little transparency. (news.financializer.com). As reported in the news.

: The project is set to be completed by fiscal 2020, according to Asahi Shimbun. Rebuilding the facility is a necessary step to help preserve the site, said an official with the land ministry, which is in charge of the project. The atoll mostly comprises a series of concrete encasings upon which a multilevel building on a platform rises above the water. We hope to start working on the construction as soon as possible. Since the early 2000s, Chinese oceanographic research vessels have been active in local waters. Located about 1,600 kilometers south of Osaka, the uninhabited atoll measuring just 4.5 km east to west and 1.7 km north to south forms part of the Ogasawara islands. (news.financializer.com). As reported in the news.

another Wisdom Project: You can follow David at @davidgallan, according to CNN. Don't miss another Wisdom Project column by subscribing here. "It not true that life is one damn thing after another -- it one damn thing over and over." -- Edna St. The series is on applying to one life the wisdom and philosophy found everywhere, from ancient texts to pop culture. Vincent Millay I've seen the 1993 film "Groundhog Day" again and again and again, but only once on the big screen, a few years after it was in theaters. Even if you haven't seen the film you still know the basic plot because the term "Groundhog Day" has entered the common vernacular -- which alone speaks to its resonance beyond the film itself -- as shorthand for repeating the same experience over and over. It was shown in a packed lecture hall inside Baltimore Walters Art Museum, followed by a lecture from a comparative religion scholar who took us through the spiritual meaning and symbolism cleverly packaged in what, on its surface, is a rom-com with a "Twilight Zone" premise. (news.financializer.com). As reported in the news.

investment projects: Ezubao was nothing but a Ponzi scheme, according Zhang Min, president of Yucheng Global, parent company of Ezubao, who claims senior executives were fully aware of the nature of the business, according to Xinhua China. She is one of 21 suspects arrested on Jan. 14. Most investment projects featured on the company website were fake, a police source said on Sunday. Ding Ning, chairman of Yucheng Global and the main suspect, told Xinhua that Ezubao invented projects to attract funds, paying commission to third parties to act as a fake operator. About 800 million yuan of commissions were paid, according to Ding. "To my knowledge, 95 percent of investment projects on Ezubao were fake," said Yong Lei, a senior manager with the company branch in east China Anhui Province. Funds were transferred from Ezubao via the operator to an associated enterprise of Yucheng Global. (news.financializer.com). As reported in the news.

legal representation: Among those arrested were Ding Ning, the chairman of Yucheng Group, which launched Ezubao in July 2014, according to The Guardian. It was not possible to reach Ezubao officials for comment and it was not clear if Ding had legal representation. Related:So you think you’re safe doing internet banking Ezubao was a Ponzi scheme, the Xinhua report said, and more than 95% of the projects on the online financing platform were fake. Ezubao website has been shut down and it appeared Yucheng Group Beijing office had been closed when Reuters reporters visited before Monday Xinhua report. The Ezubao case has underscored the risks created by China fast-growing $2.6 trillion wealth management product industry. Chinese police said they had sealed, frozen and seized the assets of Ezubao and its linked companies as part of investigations into China largest P2P online platform by lending figures. (news.financializer.com). As reported in the news.

anti-corruption: The anti-corruption drive should not be relaxed in 2016 Xi said, according to Deutsche Welle. Deemed China fourth largest Internet P2P lender by Beijing-based business magazine Caixin, Ezubao offered investors between nine to 14.6 percent annual return on their investments. DW recommends China anti-corruption campaign gaining ground, says President XiThe Communist Party Central Committee under President Xi Jinping remains determined to fight corruption, the state news agency Xinhua has reported. However, 95 percent of Ezubao projects "were fake," a former executive told investigators. State-media reported that two company executives confessed that the projects aimed at defrauding investors. "Ezubao is a typical Ponzi scam," said Zhang Min, president of Yucheng Group, which launched Ezubao in July 2014, reported Xinhua news agency. Dozens of protesters demonstrated in front of the company Beijing office demanding that their money be returned. (news.financializer.com). As reported in the news.

Alisher Usmanov: Despite opening a new multi-million dollar center of supposed technological excellence at Skolkovo in 2010, Russia has so far failed to transform itself into a rival of Silicon Valley in the US. Far from proving the adage right that "if you build it they will come," it seems Russian investors are preferring to put their money in foreign tech companies, with billionaire Alisher Usmanov putting what is said to be 'several tens of millions of dollars' into the online taxi booking service, Uber, according to the Moscow Times, according to Deutsche Welle. It also claims Viktor Vekselberg, billionaire and president of the Skolkovo Foundation, , has apparently bought a minority stake in the US-based new media company Gawker Media, via Renova US arm, Columbus Nova Technology Partners. Gref, the former economics minister under Putin in the 2000 says Russia has fallen into what he calls the category of "downshifter" countries - those that have failed to adapt to economic and technological change. While people are free to invest wherever they like, these are the latest in a round of investments in tech companies out of Russia, and as analysts like Internet entrepreneur Anton Nossik point out, it hardly a vote of confidence in the local product. As Gref warns, without a massive overhaul and significant investment in state institutions and education, Russia will end up lagging behind while other countries surge forward - and the economic result of that will be significant. And this is precisely the time when local investment is needed. (news.financializer.com). As reported in the news.

: On Friday, the key market gauge jumped 476.85 points, according to The Japan Times. The Topix index of all first-section issues closed up 30.60 points, or 2.14 percent, at 1,462.67, after climbing 39.97 points the previous trading day. The 225-issue Nikkei average rose 346.93 points, or 1.98 percent, to finish at 17,865.23. Stocks attracted buying from the outset of Monday trading after European and U.S. equities gained ground on Friday on the back of the BOJ monetary policy decision. The market accelerated its upswing toward the close, with the Nikkei average briefly rising above 17,900 in the late afternoon. The yen sharp drop against the dollar also helped lift the Tokyo stock market, pushing up export-oriented issues, including automakers and electronics manufacturers, brokers said. (news.financializer.com). As reported in the news.

Chinese business magazine: The platform, launched in July 2014, had amassed more than 50 billion yuan by December, said the report late Sunday, citing police as estimating 900,000 investors had fallen victim to the scam, according to The Japan Times. Ezubao was China fourth largest Internet P2P lender, Chinese business magazine publisher Caixin Group said in a previous report. Ezubao offered investors annual returns of between 9 percent and 14.6 percent on various projects, the official Xinhua News Agency reported — far more than currently offered by Chinese banks’ wealth management products. The company fabricated most of the projects on its website and paid old debts with money from new investors, Xinhua said. Yucheng chairman Ding Ning said the company spent more than 800 million yuan buying corporate information to invent the fraudulent projects, the report said. Ezubao is a typical Ponzi scam, it quoted Zhang Min, president of its owner Yucheng Group and one of those arrested, as saying in custody. (news.financializer.com). As reported in the news.

Xinhua: Part of the boom in peer-to-peer platforms — which connect lenders and borrowers — Ezubo had grown quickly pitching high-yielding investments as the economy slowed, according to Market Watch. Police have arrested 21 suspects linked to Ezubo and its parent, Yucheng International Holdings Group Ltd., on charges including illegally soliciting funds from the public and fraud, the Xinhua report said, adding that prosecutors are seeking restitution for 900,000 investors. The charges, reported by the government Xinhua News Agency on Monday, are the first official allegations against Ezubo Ltd., whose implosion last year touched off demonstrations in Beijing and several other cities. The report, which cited Beijing police, said Ezubo and Yucheng had lured investors with promises of high-interest payouts from leasing projects. Ezubo collapse would be one of China largest investment frauds in recent years. It quoted company officials saying 95% of the advertised investment projects were falsified, and calling Ezubo a downright Ponzi scheme. (news.financializer.com). As reported in the news.

Alphabet: The Silicon Valley rivals could trade places soon, given how rapidly the financial gap between them is narrowing, according to The Japan Times. At the end of trading Friday, Apple market value stood at $540 billion; Alphabet was worth $524 billion. If it happens, Alphabet will move to the head of the class just five months after Google reorganized itself under the holding company. That is a dramatic swing from where things stood just 13 months ago. Since then, investors have soured on Apple Inc. Apple then boasted a market value of $643 billion, almost twice Google Inc. $361 billion. (news.financializer.com). As reported in the news.

AEDT: And the Australian share market looks set to open higher following gains on world markets after the Bank of Japan unexpectedly cut its interest rate to below zero, according to Nine News Australia. At 0645 AEDT on Monday, the share price futures index was up 37 points at - US economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports. At 0630 AEDT on Monday, the local unit was trading at 70.84 US cents, down from 71.25 cents on Friday. BRUSSELS - Inflation appears to be picking up across the 19-country eurozone despite super-low oil prices. ANKARA - Iran has cancelled an oil conference in London in February, when Tehran was expected to reveal its new oil and gas contracts to investors, apparently over a delay in getting visas. PARIS - France economy grew by a weak 1.1 per cent in 2015, as its last quarter was weighed down by the November 13 terror attacks in Paris and an unseasonably warm winter. (news.financializer.com). As reported in the news.

: Concerns about China, commodities and downward revisions on global growth – notably by the IMF and the big broking houses - have given markets a severe case of financial dyspepsia, according to Australian Broadcasting Corporation. The ASX is down around 6 per cent for the year to date and consensus forecasts on earnings continue to fall. Map: Australia It has been one of the bleakest preludes to a reporting season for some time. That said, it is not the worst January on record. Locally, the ASX put on just under 3 per cent last week, the US was up 1.8 per cent, Europe 1.1 per cent and Japan 3.3 per cent, while China bucked the trend to finish the week down 6 per cent. For the ASX it is merely the worst January since 2010, when the market fell a similar amount, while it is the worst January for the US since 2009 – deep in the GFC – when shares lost almost 9 per cent of their value. "The track record of the January barometer is very mixed," noted AMP Capital Investors chief economist Shane Oliver. "For US shares the track record of a negative January going on to a negative year has been 43 per cent since 1980. "Similarly, for Australian shares the track record of a negative January going on to a negative year has been 33 per cent since 1980." Central bank pessimism drives the bounce Certainly January could have been worse if not for a late spurt which may have eased some anxiety, albeit temporarily. (news.financializer.com). As reported in the news.

John Fraser: Treasury secretary John Fraser warned in a speech last week there is a government spending problem at over 25 per cent of GDP and Australia triple-A rating could be at risk in the future if government debt is not brought under control, according to Nine News Australia. Mr Burke said since the coalition came to power, expenditure has kicked over the 25 per cent mark."Gradually bringing that down ... is something you want to work towards," he told Sky News on Sunday. But the opposition finance spokesman also believes the country has a revenue problem. At the same time, revenue is well below 25 per cent. Taxing too hard or pulling back expenditure without considering the future or economic confidence won't work for the economy even if the numbers line up around 25 per cent. However, he said whether you are trying to improve revenue or reduce expenditure you need to consider the impact on household budgets. (news.financializer.com). As reported in the news.

Oriental Dreamworks: The worldwide release date was specifically tailored to the Chinese New Year, which is a week from Monday, according to Xinhua China. The Kung Fu Panda franchise has gained great success around the world, where the first two instalments grossed a total of 1.3 billion US dollars at the box office. Including the Saturday previews from last week -- which brought in 6.4 million dollars during three hours of show-time -- the film "opening day" total surpassed 23 million bucks. The third episode was produced by Oriental Dreamworks -- a joint venture between US and Chinese investors. The film sees panda hero Po reunited with his birth father Li and falling for the sassy Mei Mei, voiced by Kate Hudson. This is the first feature film production from its new studio located in Shanghai. (news.financializer.com). As reported in the news.

airspace: The statement went on to warn that violations "could lead to serious consequences." The Russian Defense Ministry denied that it violated Turkish airspace and called Ankara allegations "unfounded propaganda.' "There were no violations of Turkish airspace by planes of the Russian air group in the Syrian Arab Republic," the ministry said on Facebook, according to CNN. Read More The ministry said that the nationality of an aircraft cannot be established on radar."This is only possible through direct visual contact from another aircraft, which did not take place," the ministry emphasized. The Foreign Ministry said the Russian SU-34 fighter was warned by Turkish air radar units, in both English and Russian, before it crossed into Turkish airspace from Syria on Friday. Turkey military shot down a Russian plane in November after it ignored several warnings and entered its airspace, according to Turkish officials. Moscow disputed that its crew was given warnings before the F-16 fired and said the Russian plane was over Syria. One Russian crew member was killed. (news.financializer.com). As reported in the news.

: To find some direction in this rudderless market, ask yourself three questions: 1) What scares me 2) What can I actually do about it 3) Would that solution eliminate my fears or just shift my worries from what scares me now to what is likely to scare me next The idea here is to get a better understanding of risk, because your ability to withstand risk — or to balance it out — will go a long way to determining what, if anything, you do to allay your fears now, according to Market Watch. Truthfully, if you built a diversified portfolio to begin with, you took all of these same fears into consideration at the start, which is why most experts suggest riding out turbulent times in place, without giving in to the sum of your fears. It a logical reaction at a time when you can talk to strangers or neighbors or friends or financial advisers and come away convinced that everyone is flummoxed by the market terrible start to the year and what it portends going forward. Barron Buzz: Time to buy the banks Barron editor Jack Otter and senior editor Jack Hough preview this week Barron magazine, including why it may be time to buy bank stocks. Say your biggest fear is a market meltdown, and the way you think you can allay that fear is to pull all your money from the market. Also, why investors may want to give some tech stocks in the Nasdaq 100 a second look. (news.financializer.com). As reported in the news.

Stock markets: Stock markets have gotten smacked around in early 2016, according to Market Watch. And the latest snapshot of the labor market is likely to show a steep pullback in hiring in January. The U.S. economy deteriorated in the fourth quarter. That the Darth Vader view of the economy. Wages are creeping higher, gas is cheap, home sales are rising, auto sales are at record highs and Americans are going out to eat a lot more. And the Luke Skywalker perspective Most economists believe the U.S. has hit another soft patch but that underlying growth remains sound, fueled by the creation of 12.5 million jobs in the past five years. (news.financializer.com). As reported in the news.

stock market: This time, however, hardly anyone noticed, according to Market Watch. Why I am referring to what the late Martin Zweig, the investment newsletter editor and mutual fund manager, called a nine-to-one up day. CHAPEL HILL, N.C. — Friday stock market action was so strong that it triggered a buy signal from a technical indicator that used to have a wide following on Wall Street. Such a session occurs when up volume in stocks on the New York Stock Exchange leads down volume by at least a nine-to-one margin. It used to be that nine-to-one up days garnered significant notice on Wall Street, given the gauge impressive track record in predicting the future direction of the stock market. Friday ratio was even stronger, at 11.1-to-1, as the benchmark S&P 500 Index SPX, +2.48% surged 2.5%, helping stocks post a weekly gain. (news.financializer.com). As reported in the news.

Myanmar: In October 2014, Myanmar granted preferential negotiating rights for the project to the consortium, according to The Japan Times. The Myanmar government plans to build the new Hanthawaddy international airport, which can handle up to 12 million passengers a year, in the Bago region, north of Yangon. With the deal, the consortium, which also includes Singapore Changi Airport Group, came a step closer Saturday to receiving a formal order for the airport construction project and its estimated $1.5 billion price tag. It hopes that about half of the total costs will be covered by the official development assistance from the Japanese government. Transportation systems linking the new airport with Yangon must also be constructed, prompting the Japan International Cooperation Agency to survey the situation to gauge whether it can offer help in this area through fresh ODA funds. The new airport is set to become operational in 2022, four years later than the original plan. (news.financializer.com). As reported in the news.

China: But it lacks qualified pilots to fly them, according to The Japan Times. Young men in particular are flocking to drone schools such as TT Aviation Technology Co., one of more than 40 in China, hoping to land a potentially lucrative job in an exciting new field. China is already the world biggest drone manufacturer, churning out remote-controlled flying machines that range from 3-D urban mappers to tear-gas spraying models for police. TT Aviation offers a two-week intensive course for 8,000 yuan where students learn regulations and how to pilot using simulators and real drones. Some experienced pilots bring in double that amount, he said. At the end of the course, they can try to earn the license required by China Civil Aviation Administration to operate drones that are heavier than 7 kg and fly higher than 120 meters . Xu Honggang, 24, believes the license will open doors to piloting jobs that make at least 5,000 Chinese yuan per month , higher than average. (news.financializer.com). As reported in the news.