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

australian securities: Investigators from the Australian Tax Office , the Australian Securities and Investment Commission and the Federal Police raided an office in the inner-Melbourne suburb of Cremorne early in August, according to Australian Broadcasting Corporation. In a press release, the ATO said the raids were also carried out on other properties in Queensland and Victoria. " The raids were part of an ongoing investigation into the activities of a firm of pre-insolvency advisors and their involvement in encouraging and facilitating illegal phoenix activity, evading GST and failing to pay tax on $22 million of unreported income," the ATO press release said. "Phoenix activity" involves moving assets from a struggling company to a new company, allowing the business to escape paying creditors. Key points:Former clients say they were unwittingly signed up as directors of companies The ordeal has left one man living out of his car Philip Whiteman was previously sued six years ago by investors Philip Whiteman has also been accused by a former client and an employee of orchestrating the installation of people as the directors of companies without their knowledge, in order to allow business owners to avoid their creditors. The investigators left a letter at each premises they raided, authorising them to seize documents relating to a number of companies, individuals and addresses. Do you know more about this story Email Former employees and clients of Mr Whiteman have told 7.30 that although he is not listed as a director, he controls a number of companies based at the Cremorne address, including those named in the ATO letter. Among those names was that of Philip Whiteman, who 7.30 has been told also calls himself Philip White, Philip Graham and Philip Damen. (news.financializer.com). As reported in the news.

basin plan: Consultants RMCG, were engaged to write the report, released at an Orchard near Tatura, Monday, according to Australian Broadcasting Corporation. It says as a direct result of the basin plan: There has been $550 million in lost production in the Goulburn and Murray Valleys of Victoria every year since 2012. The Goulburn Murray Irrigation District Leadership Forum commissioned the report to look at the socio-economic effects of the basin plan on the region because the basin authority wasn't doing the work. An estimate 1,000 jobs have been lost. Dairy in the region has declined by 20 per cent. Irrigators in the region are pay $20 million more per year for water. (news.financializer.com). As reported in the news.

brazil: The New Development Bank , jointly founded by the BRICS countries of China, Russia, Brazil, India and South Africa, was officially opened in July, 2015 in Shanghai with an initial authorized capital of 100 billion U.S. dollars, according to Xinhua China. GREEN PROJECTS, LOCAL CURRENCIES In its first year, the foundation of the bank has been laid and policies set, and its first loans have been approved, said Kamath, the first president of the bank. Kamath, speaking on the sidelines of the 8th BRICS Summit in Goa over the weekend, also said that the bank would continue to explore opportunities to issue bonds in local currencies of member countries. The Board of Directors of the bank has approved five investment projects, one in each member country for a total of over 900 million U.S. dollars, a fact sheet provided by the bank has shown. Clean energy and transportation will continue to be the focus of the bank, said the official. "It seems to be an awareness that we have to avoid the sort of challenges the environment by following certain paths to growth, so almost all countries are talking about green investment in terms of energy." Transportation becomes another area of keen interest as member countries grow. "Whether it is urban transportation... it is rail and rapid transit links... or it is highways... these seem to be key areas where there is interest for governments to put investment in and transform." The NDB president also highlighted the bank endeavors to garner funds in local currencies. According to the bank, all projects are coherent with the bank core focus on environmentally friendly energy generation and infrastructure development, supporting the creation of 1,250 MW of renewable energy capacity, and are estimated to result in the reduction of greenhouse gas emissions by nearly 4 million tons per year. (news.financializer.com). As reported in the news.

antonio guterres: The document said the BRICS members expressed satisfaction with the approval of the first batch of loans by the New Development Bank , particularly in the renewable energy projects in BRICS countries, and with the NDB issuance of the first set of green bonds in RMB, as well as the initiation of BRICS Contingent Reserve Arrangement that has strengthened the global financial safety net, according to Global Times China. Noting that BRICS countries represent an influential voice on the global stage, the leaders extended gratitude to UN Secretary-General Ban Ki-moon for his contribution in the past 10 years and congratulated Antonio Guterres on his appointment as the next UN chief, pledging continuous support for the world body. The Goa Declaration was a result of the eighth BRICS summit that was held on Oct. 15-16 in the western Indian state of Goa, under the theme of "Building Responsive, Inclusive and Collective Solutions." Chinese President Xi Jinping , Russian President Vladimir Putin, Brazilian President Michel Temer, Indian Prime Minister Narendra Modi and South African President Jacob Zuma attended the meeting. On the UN 2030 Agenda for Sustainable Development, the declaration urged developed countries to honor their commitments to achieve 0.7 percent of gross national income commitment for official development assistance to developing countries, adding that those commitments play a crucial role in the implementation of the sustainable development goals. Commending China for the successful hosting of the Hangzhou summit and its focus on innovation, structural reform and development as drivers of medium and long term economic growth, the BRICS leaders emphasized the importance of the implementation of the Hangzhou summit outcomes, which will foster strong, sustainable, balanced and inclusive growth, contribute to improved global economic governance, and enhance the role of developing countries. The five BRICS leaders, who just met last month in the eastern Chinese city of Hangzhou when China hosted the 11th summit of the Group of 20 major economies, welcomed the G20 Action Plan on the 2030 Agenda adopted during the Hangzhou Summit and committed to its implementation by taking bold transformative steps through both collective and individual concrete actions. (news.financializer.com). As reported in the news.

business model: The bank was reported to have put aside 5.5 billion euros for litigation at the end of June. "Die Welt" said that radical changes to the business model were typical requirements in settlement arrangements with the US government, reporting Deutsche Bank "must clarify one or two things" before an agreement could be made, according to Deutsche Welle. Under US regulatory requirements, a certain amount of capital would have to be dedicated to funding the bank US business. Germany biggest bank said last month that the US Justice Department had requested $14 billion to settle a probe tied to residential mortgage-backed securities. Reducing the size of the business would be one way to reduce the capital needs, if the settlement with the Department of Justice should exceed the amount the bank has put aside for legal disputes. But the sum it agreed to pay pales beside what still to come. DW recommends Deutsche Bank pays fine for unprotected market info Deutsche Bank looks unable to avoid making headlines as it faces a fresh fine for failing to properly protect non-public research information. (news.financializer.com). As reported in the news.

business opportunity: He tried his hand working in earlier jobs but was somewhat unhappy, according to Deutsche Welle. He is, however, not the only young internet entrepreneur to feel this way. It has taken him and his four-member team three months to build this mobile app. "What we are trying to deliver to our customers is a tool where they can plan their entire day, be it watching a movie, going out to a restaurant or ordering food," Shankar told DW. After spending nine years in advertising, Shankar believes this is his real calling. Spotting a business opportunity in the unorganized art market, Bharat Sethi, a 26-year-old Delhi University economics graduate, founded the e-commerce firm Poster Gully three years ago. This was often a result of inadequate sales and marketing skills. "We have created an automated platform where a lot of people can come and within 15 minutes they can start selling their creative work in various categories, starting from fabrics, apparels, tech accessories to skins and decals. After studying the market, Sethi found out that artists usually find it hard to sell their work. (news.financializer.com). As reported in the news.

coal projects: The court in the northern city of Baoding handed Wei a death sentence, suspended for two years, which in practice means he will spend life in jail and not be eligible for parole or early release, Xinhua said, according to The Japan Times. Wei abused his position to approve coal projects and took 212 million yuan in bribes, the report said, citing the court judgment. Wei Pengyuan had been deputy director of the coal department at the National Energy Administration until he was put under investigation in 2014, with officials saying at the time the cash found was the largest stash ever in a graft case. Wei Pengyuan had a vast amount of assets which obviously exceeded his legal income, and could not explain its source, Xinhua said. Liu Tienan, who had been head of the energy administration, was jailed for life in 2014 after being caught up in his own bribery scandal. It was not possible to reach relatives or legal representatives of Wei for comment. (news.financializer.com). As reported in the news.

canadian press: Pasquier took Irish-bred Erupt to the lead midway down the stretch to capture the Grade 1 event at Woodbine Racetrack, according to The Toronto Star. The win was Erupt first in eight races since capturing the Grade 1 Juddmonte Grand Prix de Paris on July 15, 2015. By Dan Ralph The Canadian Press Mon., Oct. 17, 2016 Stephane Pasquier found his horse and the winner circle Sunday in the $1-million Pattison Canadian International. It like winning a World Cup, said Pasquier, a diehard fan of French soccer club Paris Saint-Germain. Today he came back very easily. We won a Group 1 in France at three years old but it was a difficult start to this year. (news.financializer.com). As reported in the news.

cent tax: Frank Wu, vice-president of the China Real Estate Industry Association, said Chinese investors have told him that the 15 per cent tax is discouraging them from buying property in the city, according to The Toronto Star. It will impact their willingness to invest in Vancouver, Wu said Monday in an interview with The Canadian Press. By Ross Marowits The Canadian Press Mon., Oct. 17, 2016 MONTREAL—One of China top real estate moguls says his customers are troubled by British Columbia tax on foreigners purchasing homes in Vancouver and he intends to raise the matter with Prime Minister Justin Trudeau. Wu, who is also chairman of Central China Real Estate Ltd., is part of a Chinese delegation of billionaires touring Canada this week who want to strengthen economic ties between the two countries. The B.C. government implemented the tax in August in an effort to curb house prices that made Vancouver one of the hottest real estate markets in the world. He said he plans to discuss the tax with Trudeau when the group stops in Ottawa on Tuesday. (news.financializer.com). As reported in the news.

country: The armies close the borders, according to The Guardian. The conduct of the police varies from country to country. People smugglers lie. Aid organisations are overwhelmed. In the face of such uncertainty, many refugees look to their smartphones to find out what happening. Rumour is rife and reliable information is hard to find. (news.financializer.com). As reported in the news.

daniel squizzato: Strong collaboration between the supporters groups in the stadium south end, combined with some serious BMO Field upgrades, have resulted in unprecedented sights and sounds this season, according to The Toronto Star. The most memorable display came before a game against the Montreal Impact on August 27. By Daniel Squizzato Mon., Oct. 17, 2016 Toronto FC slogan — All For One — has been on full display at BMO Field in 2016. Five supporters groups — U-Sector, Red Patch Boys, Kings in the North, Inebriatti and Original 109 — worked together to create a gigantic banner display that went up before kickoff. The tifo took five weeks to plan, design and paint, with upwards of 40 supporters working at a time to paint the five giant panels, the largest of which measured 45 feet by 45 feet. It was rigged up on the south-end canopy, one of the three new canopies that were part of BMO Field multi-year, $120-million facelift. (news.financializer.com). As reported in the news.

heathrow airport: Charts show that when adjusted for different patterns of trade down the ages it is at its lowest for 168 years, according to The Guardian. If you have been gouged by a foreign exchange desk at Heathrow airport, this is a bad thing. The pound has been falling on the foreign exchanges and, like a patient in intensive care, there are daily bulletins about its health. If you consider sterling to be a symbol of national virility, it is a bad thing. The Brexit economy: post-referendum data defies gloomy UK predictions Read more But put the Brexit vote to one side for a second and ask yourself the following questions: is the economy currently unbalanced Is growth too dependent on consumer spending and asset price bubbles Is the productive base of the economy too small Is it a problem that the UK is running a balance of payments deficit worth 6% of GDP, bigger than ever before in peacetime If your answer to these four questions is yes – as it should be – then you need to accept that there is an upside to the falling pound. If you think that the future for the UK outside the European Union is unremittingly bleak, it is definitely a very bad thing. (news.financializer.com). As reported in the news.

policy support: He predicted inflationary pressure will build as central banks begin to scale back policy support, according to Market Watch. Ahead of that reversal, investors should rotate out of stocks and bonds to real assets, given their positive correlation with inflation. The best approach Buy humiliation, sell hubris, said Michael Hartnett, chief investment strategist at Bank of America. Today the humiliation is very clearly commodities, while the hubris resides in fixed-income markets, Hartnett said. Broadly speaking, they're at their cheapest relative to financial assets in almost a century, according to Hartnett. Real assets are tangible objects such as property, commodities, precious metals and collectibles that are considered less liquid than securities. (news.financializer.com). As reported in the news.

monday interview: So, generally speaking, pretty cautious on the market, not outright bearish on the market, according to Market Watch. Tepper described the investing environment as a fairly fully valued market. Depending on the outcome of the election, the market can move different ways, the founder of Appaloosa Management told CNBC in a Monday interview. The S&P 500 index SPX, +0.62% was down slightly and has shed 1.8% in the month to date, trimming its 2016 gain to 4.2%. Tepper is widely seen as one of the world most successful hedge-fund managers. That report also said Tepper was weighing whether to more aggressively short the bond market in anticipation of future rate increases by the Federal Reserve. His fund has posted low single-digit gains so far this year, according to Institutional Investor, which reported earlier this month that Tepper was somewhat long stocks and somewhat short bonds. (news.financializer.com). As reported in the news.

onshore yuan: The People Bank of China , the country central bank, sets the central parity rate, according to Global Times China. The yuan is allowed to rise or fall by 2 percent daily from that rate in the spot market. The central parity rate of the yuan declined 222 basis points to 6.7379 against the dollar on Monday, according to the China Foreign Exchange Trading System. The closing price of the onshore yuan against the US dollar fell to 6.7396 on Monday, according to domestic web portal sina.com on Monday. The dollar was almost unchanged at a seven-month high against other major currencies on Monday, according to a report Monday from the financial website investing.com. "The yuan depreciation recently was caused by many factors, including domestic economic uncertainty such as debt risks, rising capital outflow and declining exports," Zhou Yu, director of the Research Center of International Finance at the Shanghai Academy of Social Sciences, told the Global Times on Monday. "If the US dollar rallies, the yuan is going to have further devaluation," Zhou said. The offshore yuan against the US dollar was 6.7483 as of 17:46 on Monday, according to marketwatch.com on Monday. (news.financializer.com). As reported in the news.

people lives: Duterte will visit China from October 18 to 21 at the invitation of Chinese President Xi Jinping, according to Global Times China. The trip will be Duterte first official visit to a foreign country outside the Association of Southeast Asian Nations."As improving his people lives is paramount in his bid to boost economic growth, Duterte has chosen to draw closer to China in terms of economic collaboration," Liu Feng, an expert on South China Sea studies, told the Global Times. We look forward to renewing ties between the Philippines and China and to reaffirm our commitment to work closer to achieve shared goals for our countries and peoples," Duterte said in his departure speech, the Philippine Star newspaper reported Monday. Echoing Liu, Chen Xiangmiao, a research fellow at the National Institute for the South China Sea Studies, told the Global Times that with the urgent need to "consolidate power," this visit will focus on economic and trade cooperation with China as well as infrastructure development. Duterte will discuss economic, business and investment agreements with China, Philippine Department of Foreign Affairs spokesperson Charles Jose was quoted by the Philippine Star as saying on Friday. The China-proposed Belt and Road initiative and Asian Infrastructure Investment Bank can provide funds and technology to build roads and railway in the Philippines, Liu said. (news.financializer.com). As reported in the news.

rating change: At the same time, Analyst James Dix upgraded Viacom Inc, according to Market Watch. VIAB, +0.14% to outperform from neutral, also for valuation reasons, reversing a recommendation he made back in February 2013. "Our rating change is part of closing out a 'pair' trade from over three years ago," Dix wrote in a note to clients. "Today, we believe Time Warner shares are now fully valued while Viacom is undervalued. TWX, +0.85% was downgraded to neutral from outperform at Wedbush Securities, which cited concerns that the stock was overvalued following the recent rally. Therefore, our rating changes today reverse the prior changes." Although Dix is still upbeat about Time Warner TV programming production business, and the potential for higher earnings growth at HBO, he expects a more challenging economic environment for its basic and premium pay TV networks. CBS, -0.52% Even if there is no merger, he is upbeat about the potential for a sale of a stake in Paramount. For Viacom, Dix is now bullish because of the likely merger with CBS Corp. (news.financializer.com). As reported in the news.

investor demand: That, plus foreign investor demand for an extra premium for buying gilts, was driving up yields, analysts said, according to The Guardian. Though German Bund and US Treasury yields have also been rising in recent days, the fact that gilt yields have risen at a faster pace reflects investor nervousness. Sterling near 20% plunge since the vote to leave the European Union has sent inflation expectations soaring, driving investors to wind back bets on further interest rate cuts and other Bank of England stimulus measures this year. The benchmark 10-year gilt yield was at 1.13% by 1600 GMT, up around 3 basis points on the day, having risen to 1.22% earlier on Monday nervousness. At the moment, rather than higher yields driving sterling, you had a weaker pound driving higher inflation expectations, in turn driving a steeper and higher UK rates curve. There been a shift in dynamic since the start of October that very unusual for a G10 currency, particularly for sterling, where higher yields are corresponding with a weaker currency, said BNP Paribas currency strategist Sam Lynton-Brown. (news.financializer.com). As reported in the news.

mainland nationals: Crown Resorts, controlled by James Packer, closed 13.9% lower on Monday after the company confirmed its staff had been detained in China, according to Nine News Australia. The share price tumble saw Mr Packer wealth cut by more than half a billion dollars. They could be charged with organising activities for mainland nationals overseas, Fairfax reported. Among the arrested staff was the most senior executive Australian Jason O'Connor, head of international VIP, who is responsible for bringing whales - wealthy clients - to Australia. Investors fear the detention of the Crown employees may indicate the Chinese government is about to get tougher on gambling in Macau, where Crown operates three casinos under the joint venture Melco Crown Entertainment. Crown said it was not aware why the 18 employees had been detained. (news.financializer.com). As reported in the news.

nsw: The NSW Supreme Court today heard workers from the Prysmian cable factory in Liverpool congratulated him the day after the life-changing win on May 5, according to Nine News Australia. But when Mr King went to see syndicate organiser Robert Adams, he was told he wasn't a part of the winning group."Mate, I'm part of the syndicate, I paid my $50 whenever you asked for it," Mr King said he told Mr Adams."It different people," Mr Adams allegedly replied. Brendan King, a father-of-five who contributed to workplace syndicates for about four years, claims he is owed $2.7 million as one of 15 southwest Sydney factory employees who won a Powerball draw. Mr King told the court he was distressed but accepted the result until he found out he was the only member of an original 12-person arrangement not to be included in the winning syndicate. Mr King barrister Lachlan Gyles SC said it was presumed a member was part of the syndicate unless they opted out and that it would hardly be "unfair or unjust" if his client were paid the money. In an affidavit, he said Mr Adams told him "s--- happens" in a meeting days after the win."For many, many years I have operated several lottos without Brendan and without people who are in that syndicate," Mr Adams said."I am very sorry that I didn't have the opportunity to ask Brendan to be a part of the winning syndicate."The court heard Mr Adams did not contact Mr King to ask if he wanted to chip in for an extra $600 worth of Powerball tickets, despite making the effort to text another member he had not seen around work. (news.financializer.com). As reported in the news.

point fingers: The two members of the GOP ticket aren't on the same page on the concerns Trump is fueling about the election being "rigged." They point fingers in different directions on Wiki Leaks, according to CNN. Pence may be out of sync with some Trump voters as well, as seen with an exchange where Pence rejected a call about needing a "revolution" if Clinton wins. Trump undercut Pence on foreign policy in the middle of a presidential debate. As a result, Pence role on as Trump chief spokesman and defender has been undercut, making the Indiana governor task of soothing Republican concerns about the GOP nominee even more difficult. "I think it makes Pence look foolish," said Katie Packer, a Republican strategist who was a top aide on Mitt Romney 2012 campaign but is now a fierce Trump critic. He is also smart enough to understand that elections are conducted at the municipal level, so widespread rigging can't really happen -- something that Trump seems to not understand."Pence spokesman didn't immediately respond to a request for comment. Read More "He clearly has no influence or sway with his candidate and they are on different pages completely," Packer said. "Pence knows the importance of having confidence in the voting process. (news.financializer.com). As reported in the news.

work: The Fair Work Ombudsman has released a report after a two-year investigation, where it surveyed 4,000 people who held 417 visas, according to Australian Broadcasting Corporation. These visa holders are required to complete 88 days paid work in regional areas to secure a second year. Map: Sydney 2000 Horticultural industry leaders say they are disappointed exploitation of working holiday makers is continuing to tarnish the reputation of their industry. The survey found 35 per cent were paid less than the minimum wage, while 28 per cent were not paid at all for some of the work. It found Taiwanese and South Korean workers the most vulnerable, given the language barrier. Rachel McKenzie, the chief advocate with Queensland peak horticulture group Growcom, said she supported the Ombudsman crackdown on dodgy labour hire companies. "When you hire someone to be a builder on your property, you have some comfort they're registered builder and you have that vetting process. "We don't have that comfort, and we have the issue of phoenixing evasion of tax and other entitlements such as employee entitlements . "Everyone says 'you know Fred Nerks Pty Ltd is dodgy, that company disappears and turns up as Bill Blogs Pty Ltd and they're equally dodgy and we have many cases where growers are paying the right money, but that is not getting to the workers." The Fair Work Ombudsman found Queensland was the worst offending state. (news.financializer.com). As reported in the news.

aleppo: Up to a quarter of a million people are trapped in Aleppo as the Syrian military, backed by Russian warplanes, pounds its streets into rubble, according to CNN. Kerry called the bombing of Aleppo "a horrendous step back in time" and the greatest humanitarian disaster since World War II. The secretary of state said Russia claims to be fighting terror in Syria, but he said that 80% to 85% of its bombing is directed at the moderate opponents of Syrian President Bashar al-Assad in the civil war. The two spoke in London at the end of talks with European and Middle Eastern allies seeking a multilateral approach in resolving the Syrian crisis, including a sustained cessation of violence and humanitarian aid deliveries to the beleaguered Syrian city. Read More "No one is fooled by this," Kerry said. John Kerry hopes for a new ceasefire in the besieged Syrian city of Aleppo. Admitting frustration at the slow pace of negotiations while so many people have died, Kerry said: "We are pursuing diplomacy because these are the tools we have."Johnson said, "Our challenge to the Russians is to do the right thing for humanity," adding that sanctions and other diplomatic measures will "eventually come to bite the perpetrators."Attendees at the London talks included the UK, the United States, France, Germany, Italy, Saudi Arabia, Qatar, Turkey, the United Arab Emirates, Jordan and the European Union, the British Foreign Office said. (news.financializer.com). As reported in the news.

budget deficit: The finance ministry said it informed the European Commission that it provisionally forecast its budget deficit at 3.6 percent of gross domestic product from a previous 3.1 percent target, according to Nine News Australia. It noted a backdrop of political instability after two inconclusive elections inside a year and eight years trying to haul itself back into shape following the 2008 economic crisis. Spain, mired in political deadlock just as it emerges from a six-year recession, has admitted it will overshoot its budget deficit target next year. Two months ago, Madrid just avoided an EU fine for repeated breaches of budget rules. Brussels did not immediately comment on the latest forecast for the eurozone fourth largest economy. Brussels let both Spain and neighbouring Portugal off the hook, judging that both were trying to get their house in order and close in on the official ceiling of 3.0 percent of GDP. But the EU told both countries to stay on a path of "fiscal consolidation" as the only way to create a foundation for durable growth. (news.financializer.com). As reported in the news.

business investment: However, this performance is expected to fizzle out as inflation jumps 2.6% next year and 1.8% in 2018, causing consumer spending to slump 0.5% and 0.9% respectively, according to The Guardian. Business investment is also slated to take a hefty knock from uncertainty surrounding Britain future trading relationship with the EU, dropping 1.5% this year and more than 2% in 2017. Brexit adviser: leaving EU customs union will cost UK £25bn a year Read more Influential thinktank EY Item Club said the UK economy will produce GDP growth of 1.9% this year, fuelled by a 2.5% rise in consumer spending on the back of low inflation. The double whammy impact will cause UK GDP growth to drop sharply to 0.8% next year, before rising to 1.4% in 2018. Sterling shaky performance this month provides a timely reminder that challenges lie ahead. Peter Spencer, chief economic advisor to the EY Item Club, said: So far it might look like the economy is taking Brexit in its stride, but this picture is deceptive. (news.financializer.com). As reported in the news.

corn contract: December wheat delivery surged by 26.25 cents weekly, or 6.65 percent, to 3.9475 dollars per bushel, according to Xinhua China. November soybeans rose 5.75 cents weekly, or 0.6 percent, to 9.625 dollars per bushel. The most active corn contract for December delivery added 14.5 cents weekly, or 4.27 percent, to 3.5425 dollars per bushel. Corn futures rallied to new 3-month highs this past week. And moving forward, the market focus will shift more and more to demand, and traders note that ethanol margins remain stout, and that US Gulf corn is easily the world' s low cost origin into early 2017. The October WASDE has come and gone, and as expected yield was lowered slightly and demand was raised slightly. (news.financializer.com). As reported in the news.