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April 17, 2012

Spanish Banks Gorging on Sovereign Bonds Shifts Risk - Bloomberg

Filed under: Uncategorized, technology — Tags: , , , — Silver @ 10:04 pm

Spanish, Italian and Portuguese banks are loading up on bonds issued by their own governments, a move that shifts more of the risk of sovereign default to European taxpayers from private creditors.

Holdings of Spanish government debt by lenders based in the country jumped 26 percent in two months, to 220 billion euros ($289 billion) at the end of January, data from Spain

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April 14, 2012

Iran, Western powers hail latest nuclear talks

Filed under: online, technology — Tags: , , , — Silver @ 8:32 pm

In a rare show of unity, Iran and the world’s big powers on Saturday hailed their first nuclear meeting in more than a year as a key step toward further negotiations meant to ease international fears that Tehran may weaponize its nuclear program.

The one concrete reflection of progress was an agreement to meet again on May 23 in Baghdad, a venue put forward by Iran.

But huge hurdles still lie in the way of a common understanding of what Iran should do to end suspicions of its nuclear activities. Those barriers may prove insurmountable considering the differences between Tehran and the six nations trying to persuade it to compromise on its nuclear efforts.

Since revelations surfaced 10 years ago that it was secretly building a uranium enrichment program, Tehran has argued it has a right to enrichment to create reactor fuel under the Nuclear Nonproliferation Treaty, and insisted it will never use that ability to create the fissile core of a nuclear warhead.

But the United States and other countries accuse Iran of repeatedly violating the treaty, and Tehran continues to expand enrichment despite four sets of U.N. Security Council resolutions and other penalties imposed by the U.S., Europe and others. Adding to concerns, it now is enriching uranium to levels closer to the grade needed for nuclear weapons in an underground bunker that could be impervious to attack.

The talks in Istanbul on Saturday saw the United States, Russia, China, Britain, France and Germany sitting at the same table with Iran. Knowing the road ahead is tough, both sides focused on what they said was the positive tone of the talks, in contrast to the previous round 14 months ago.

That last session broke up with no progress after Iranian negotiators refused to even consider discussing enrichment

EU foreign policy chief Catherine Ashton, who formally led the talks on behalf of the six powers, called the meeting “constructive and useful.”

She expressed the hope they will lead to “a sustained process of serious dialogue, where we can take urgent practical steps to build confidence and lead on to compliance by Iran with all its international obligations.”

Iranian chief negotiator Saeed Jalili said the talks made “some progress.” But he acknowledged “some points of difference.”

“What we saw today in the talks was the interest of the other party in the talks and cooperation, which is considered positive,” he told reporters.

In London, British Foreign Secretary William Hague said the talks were “the first steps” toward the six-nation push to find “a peaceful, negotiated solution to the (Iran) nuclear issue.”

“Today’s talks were a first step towards that objective, but there is still a long way to go.”

Both Jalili and Ashton said there was agreement to move slowly and be guided by reciprocity _ meaning that Iran stood to benefit from easing fears about its enrichment program by unspecified rewards from the other side.

Iran hopes those rewards could include easing or delaying sanctions that target its main cash cow, its oil sales. Jalili acknowledged Saturday that Iran would like to avoid those penalties.

“The lifting sanctions is one of the demands by Iranian nation,” Jalili told reporters.

But a senior U.S. administration official who demanded anonymity in exchange for discussing strategy at upcoming talks said that was not on the table in the near future.

“One only expects to look at the issue when there are sufficient concrete steps taken” by Iran, she said at a post-negotiation briefing. “Dialogue is not sufficient for any sanctions relief.”

Beyond the bite of sanctions, Iran is under threat of Israeli and possibly U.S. military attack unless it makes headway in persuading the international community it is not pursuing nuclear weapons.

The U.S official said Iran’s acceptance of the need to discuss its nuclear program appeared dictated by recognition that the diplomatic “window of opportunity was closing” and that the threat of military action potentially growing.

Ashton said there was agreement by both sides that the talks should be guided by the Nonproliferation Treaty, but because Iran says it has never violated that treaty that understanding could prove to be a huge stumbling block to progress.

Top level meetings of the International Atomic Energy Agency, which tries to monitor Iran’s nuclear activities, are often dominated by inconclusive debate between Iran and its critics on whether Tehran is in compliance or has broken treaty provisions.

“Under the NPT, the right of enrichment exists for all member countries,” Jalili told reporters after the talks, suggesting his country would press that point at follow-up meetings. Ashton, in turn, told reporters that the six seek “to ensure all the obligations under the NPT are met by Iran while fully respecting Iran’s right to the peaceful use of nuclear energy.”

In its claim to comply with all NPT obligations, Iran asserts that it declares all its nuclear material and allows inspectors to monitor all nuclear facilities.

But IAEA chief Yukiya Amano has said repeatedly that because Iran does not cooperate fully with his agency it cannot guarantee that it is not hiding undeclared nuclear material that could be used for weapons. Additionally, he has spoken of compelling evidence that Iran may have worked on nuclear arms _ charges Tehran dismisses as fabrications spread by the United States and Israel.

Officially, the international community’s long-term goal remains what it was when nuclear negotiations began eight years ago _ persuading Tehran to stop all uranium enrichment and thereby relieve fears that it will use that program to create fissile warhead material.

A senior diplomat involved in the talks said, however, that influential Western nations now are increasingly coming around to the idea that Iran should be allowed to keep some enrichment activity “under the right circumstances,” sometime in the future, if all fears about possible Iranian plans to make nuclear weapons are put to rest. He demanded anonymity because his information was confidential.

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April 6, 2012

Olive: SNC-Lavalin

Filed under: marketing, technology — Tags: , , , — Silver @ 6:04 pm

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April 5, 2012

Yahoo cuts 2,000 jobs as radical reshaping begins

Filed under: online, technology — Tags: , , , — Silver @ 4:08 am

Yahoo said Wednesday that it will eliminate 2,000 employees, around 14% of its workforce, as new CEO Scott Thompson begins radically streamlining the company.

The long-rumored job cuts could be the first of several rounds, as Thompson pares Yahoo (, Fortune 500) down to focus on what he views as the company’s core business lines.

Thompson, who joined Yahoo in January, plans to provide more information about his strategy during the company’s first-quarter earnings announcement, which is scheduled for April 17.

In a written statement, Thompson said the cuts "are an important next step toward a bold, new Yahoo — smaller, nimbler, more profitable and better equipped to innovate. Our goal is to get back to our core purpose — putting our users and advertisers first."

Yahoo said its job cuts will save the company $375 million a year when they are completed. It expects to take a $125 million to $145 million charge this quarter for severance costs.

Thompson is aiming to do something his recent predecessors — including Carol Bartz, who was forced out in September — have repeatedly failed to do: articulate a vision of what Yahoo is.

The Internet’s first giant portal has retained a massive user base, but has lost its edge in nearly every field to newer, nimbler rivals. The company gave up on search in 2009, and it’s losing ground in display advertising to new entrants to the market such as Google (, Fortune 500) and Facebook fast cash advance.

Thompson’s busy 2012: Wednesday’s layoffs come three months to the day that Thompson took over at Yahoo — and his tenure has already been a busy one. In February, four longtime board members, including chairman Roy Bostock, announced they would not seek re-election.

Exactly one week after that, activist shareholder Daniel Loeb and his hedge fund Third Point launched a proxy fight. Third Point, which owns a 5.56% stake in Yahoo, is proposing four new Yahoo board members, including Loeb himself.

Mere weeks later, in March, Yahoo filed a lawsuit against Facebook. The high-profile suit alleges that Facebook infringed on 10 of Yahoo’s patents related to advertising, privacy, customization, messaging and social networking.

Facebook called the lawsuit "puzzling," while outside critics decried the move as "pathetic" and "desperate."

Still, considering that his predecessors failed at fixing Yahoo, Thompson clearly knows he has to make bold moves. Whether they’re enough for the long-promised but so far elusive Yahoo turnaround remains to be seen. 

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April 1, 2012

Health reform’s tax bite

Filed under: money, technology — Tags: , , , — Silver @ 5:28 pm

No one knows for sure what the Supreme Court will do with health care reform. But unless it strikes down the whole law, millions of wealthy families can expect a tax increase come January.

Two big Medicare tax changes were enacted to help pay for the new federal subsidies that millions of Americans will get when they buy health insurance. The tax changes themselves were not among the specific provisions of the law being challenged at the court.

Quiz: What the rich really pay in taxes

The new increases in Medicare taxes will apply to individuals making more than $200,000 a year, or $250,000 for married couples.

The measure, set to go into effect next year, is estimated to raise more than $200 billion over 10 years.

Roughly 4 million households — or 2.4% — will be affected by the increase initially, according to new estimates from the Tax Policy Center. By 2022 that number will grow to 8.3 million, or 4.6%.

What if the health reform mandate dies?

How much more households will pay depends on which Medicare increase they’ll be subject to since the Affordable Care Act calls for two changes. Some households will only be subject to one, and some will be subject to both.

The first involves the Medicare tax on earnings. Today, workers pay 1.45% of their wages into Medicare. Starting next year, high-income individuals will pay another 0.9 percentage points on their earned income over $200,000 ($250,000 if married).

The second change pertains to investment income, which to date has never been subject to the Medicare tax instant payday loan. But next year high-income households will start paying a 3.8% tax on at least a portion of their investment income, such as capital gains, dividends and rental income.

Households subject only to the Medicare tax increase on earnings will pay an estimated $2,430 more on average next year. But amounts vary widely depending on one’s income level. Those making between $200,000 and $500,000, for instance, will only pay about $633 extra while households making $1 million or more would pay another $11,242.

By contrast, millionaires subject only to the new investment income tax will see a much bigger tax bill, paying $38,149 more.

And — no surprise — households subject to both versions of the Medicare tax increase will get hit the hardest. More than 90% of those with incomes over $1 million fall into this group, according to Tax Policy Center estimates. And their average tax increase would top $45,000 next year. By 2022, they’ll pay $57,125 more.

While it’s easy to make the case that the wealthy can absorb these kinds of increases without much strain, that argument may not hold up as well over time as lawmakers seek to raise more revenue from the $250,000-and-up crowd to pay for any number of endeavors, including reducing deficits.

Said Tax Policy Center senior fellow Roberton Williams: "The well is only so deep." 

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March 27, 2012

BATS CEO issues apology for glitch

Filed under: Banks, technology — Tags: , , , — Silver @ 5:40 pm

After botching its debut as a public company last week, BATS Global Markets issued a heartfelt apology Sunday night in a letter to customers.

"Let me get right to the point," said Joe Ratterman, chief executive of BATS, in the letter. "BATS experienced a serious technical failure Friday morning and I want to apologize for not measuring up to the level of excellence that you have come to expect from us."

The technical failure came on the day BATS had hoped to sell its own stock to the public for the first time. BATS, which operates stock exchanges, intended to list the stock on its own trading platform.

But trading in the newly issued BATS stock was halted when the price suddenly plunged almost immediately after it hit the market, triggering a so-called circuit breaker.

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"On Friday we were under the brightest spotlight imaginable … opening our own stock on our own exchange for the first time ever," said Ratterman. "It doesn’t get much more public than that."

Despite months of preparation and "rigorous" testing, BATS said it experienced a "system problem" that prevented the stock from trading properly payday loans for bad credit.

Ratterman stressed that all companies have technical glitches and that BATS exchanges have run smoothly 99.9% of the time over the last three years.

"It shouldn’t have failed, but it did, and the timing couldn’t have been worse," said Ratterman.

Ratterman suggested the offering could have been salvaged if the problem had been resolved quickly. But it took over two hours to reopen the market and by then the damage had been done.

"We determined that this was a material event that had eroded investor confidence and made the timely resumption of fair and orderly trading unlikely," he wrote. "As a result, we pulled the IPO and unwound all auction executions."

BATS is the third-largest exchange operator in the United States after NYSE Euronext (, Fortune 500) and the NASDAQ OMX Group (), according to the company’s investment prospectus.

The Kansas City-based company is considered one of the largest platforms for high-frequency computer-driven trading. 

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March 18, 2012

Doe Run’s Herculaneum site may see new life as commerce center

Filed under: Mortgage, technology — Tags: , , , — Silver @ 2:12 am

A development group is proposing to turn the Doe Run lead smelter property in Herculaneum into a $100 million facility that will have a port and additional commercial and industrial uses.

St. Louis-based Environmental Operations Inc. and J.H. Berra Construction Co. in St. Louis County have partnered to create a development group, Riverview Commerce Park LLC, to purchase 500 acres in Jefferson County that includes the Doe Run Co’s lead smelting facility and adjoining property in Herculaneum, the companies announced Friday.

The project is in an early stage and will undergo six months of due diligence before more details are announced in the fall, said Environmental Operations’ chairman and CEO Stacy Hastie.

“We’ve talked to two to three potential users for the site, and we think it has a lot of potential.”

Riverview Commerce Park LLC has signed a letter of intent to purchase the property for an undisclosed amount from Maryland Heights-based Doe Run Co.

The property has been used as a lead smelter for more than a century, and in recent years, Doe Run has come under fire because of environmental problems at the site.

In 2010, the company announced it planned to cease production of primary lead at the Herculaneum smelter. In a settlement with federal and state environmental regulators, Doe Run also agreed to pay for clean-up at the site.

Bruce Neil, Doe Run Co.’s president and chief executive officer, said in a statement that the property has “infrastructure and environmental challenges.”

It chose Environmental Operations and J.H. Berra as buyers and developers of the property, he said, because of their expertise in handling similar challenges.

“We’ve been looking at how we could re-purpose the property and still provide some economic vitality for the area,” said Doe Run spokesperson Tammy Stankey. Doe Run’s smelter currently has 277 employees.

Doe Run is developing an alternative lead metal production process, called electrowinning, that uses a wet chemical process to dissolve lead that it claims reduces emissions.

The company is testing the process at a facility in southeastern Missouri and will decide this spring whether to make a recommendation to the company’s board to open a commercial-scale plant for the new technology.

If it moves forward, the new commerce center proposed at Herculaneum would be considered as a possible location, Stankey said.

Jefferson County officials have worked for years to get a port built along the Mississippi River to spur job growth, said Dan Govero president of the port authority.

“We have all this water frontage and we’re not using it,” he said. “The studies we’ve done show there’s an opportunity to ship grain, sand and other materials, and we have the highway and rail access.”

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March 13, 2012

Retail Sales in U.S. Probably Rose in February, Lifted by Autos - Bloomberg

Filed under: money, technology — Tags: , , , — Silver @ 7:32 am

Retail sales in the U.S. probably rose in February by the most in five months, spurred by the strongest demand for automobiles since 2008, economists said before a report today.

The 1.1 percent rise would follow a 0.4 percent gain in January, according to the median forecast of 81 economists surveyed by Bloomberg News. Excluding autos, purchases may have climbed 0.7 percent.

Sales at chains like Gap Inc. (GPS) and Target Corp. (TGT) last month beat analysts

February 19, 2012

Egypt says to sign deal for $3.2 billion IMF loan

Filed under: Uncategorized, technology — Tags: , , , — Silver @ 4:32 pm

Egypt’s finance minister says Cairo expects to sign a loan agreement with the International Monetary Fund for $3.2 billion next month.

The state-run al-Ahram daily of Sunday quoted Mumtaz al-Said as saying that sum would be disbursed in three stages: the first upon the deal’s signing, and the second and third three and six months later, respectively.

Egypt formally requested the loan in January, after rejecting an offer made last year. The IMF could not immediately be reached for comment.

Egypt’s economy has been badly battered by more than a year of unrest since an 18-day uprising pushed President Hosni Mubarak from power on Feb. 11, 2011.

The report said Egypt is also negotiating a second loan for $1 billion with the World Bank.

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January 29, 2012

APNewsBreak: UN weapons experts going to Tehran

Filed under: marketing, technology — Tags: , , , — Silver @ 7:56 am

The U.N. nuclear agency is including two senior weapons experts on its next mission to Tehran in an unusually clear statement on the team’s prime focus _ wresting information from Iranian officials about suspicions the country has secretly worked on atomic arms.

Iran has flatly refused to discuss such allegations for more than three years, saying they were based on phony intelligence from the U.S. and others seeking to harm the Islamic Republic.

But diplomats on Friday told The Associated Press that the weapons experts were part of the U.N team and that Iran had accepted their inclusion after some initial resistance. That suggested that the Islamic Republic was being more conciliatory on the issue of secret weapons work than usual as the International Atomic Energy Agency mission prepares to fly from Vienna to Tehran Saturday.

All six diplomats interviewed said Tehran had not committed to discussing the issue. But three of them added that Iranian officials indicated openness to talking about all topics during the IAEA mission that ends early next week _ a departure from standard reluctance by Tehran to exclude give-and-take on the arms allegations.

None of the diplomats expressed confidence of a breakthrough. But the Iranian stance at least allows the mission to have some home of making a dent into Iran’s wall of silence about its alleged clandestine nuclear weapons work.

Any progress on the issue would be significant.

Tehran has blocked IAEA attempts for more than three years to follow up on U.S. and other intelligence alleging covert Iranian work on nuclear arms, dismissing the charges as baseless and insisting all its nuclear activities were peaceful and under IAEA purview.

Faced with Iranian stonewalling, the IAEA summarized its body of information in November, in a 13-page document drawing on 1,000 pages of intelligence. It stated then for the first time that some of the alleged experiments can have no other purpose than developing nuclear weapons.

Iran continues to deny the charges and no change in its position is expected during the Tehran talks with IAEA officials. But even a decision to enter a discussion over the allegations would be a major departure from outright refusal to talk about them.

The diplomats said that the IAEA team was looking for permission to talk to key Iranian scientists suspected of weapons work, inspect documents relating to such suspected work and get commitments for future visits to sites linked to such allegations.

As most often the case, the IAEA team is headed by Herman Nackaerts, the chief agency official in charge of the Iran file _ but the makeup of the rest of the team reflects the importance attached by the agency to the trip.

Two diplomats said Friday that nuclear weapons experts Jack Baute of France and Neville Whiting of Britain would accompany Nackaerts.

While both fulfill IAEA functions not directly related to nuclear arms research, they were connected to their nation’s weapons programs before they came to the agency.

One of the diplomats _ who is familiar with the thinking that went into setting up the mission _ said their inclusion was meant to send a clear signal to the Iranians. He, like the five other diplomats, asked for anonymity in exchange for discussing privileged information,

Also on the team is Rafael Grossi, IAEA chief Yukiya Amano’s right hand _ another indication of the importance the agency has attached to the trip.

The three-day visit comes as anxiety grows daily about Iran’s nuclear capacities _ and what it plans to do with them.

Since the discovery in 2002 that Iran was secretly working on uranium enrichment, the nation has expanded that operation to the point where it has thousands of centrifuges churning out enriched material _ the potential source of both nuclear fuel and fissile warhead material.

Iran says it is enriching only to generate energy. But it has also started producing uranium at a higher level than its main stockpile _ a move that would jump start the creation of highly enriched, weapons grade uranium, should it chose to go that route. And it is moving its higher-enriched operation into an underground bunker that it says is safe from attack.

Israel in particular is concerned by Iran’s expanding enrichment capacities _ and increasing evidence of secret nuclear weapons work.

Israeli Defense Minister Ehud Barak said Friday the world must quickly stop Iran from reaching the point where even a “surgical” military strike could not block it from obtaining nuclear weapons.

Amid fears that Israel is nearing a decision to attack Iran’s nuclear program, Barak said tougher international sanctions are needed against Tehran’s oil and banks so that “we all will know early enough whether the Iranians are ready to give up their nuclear weapons program.”

The United Nations has imposed four rounds of sanctions against Iran, but veto-wielding Russia and China say they see no need for additional punitive measures. That has left the U.S. and the European Union to try to pressure other countries to follow their lead and impose even tougher sanctions.

“We are determined to prevent Iran from turning nuclear,” Barak told reporters during the annual meeting of the World Economic Forum.

“It seems to us to be urgent, because the Iranians are deliberately drifting into what we call an immunity zone where practically no surgical operation could block them,” he said, alluding to increased Iranian efforts to move their enrichment work deep underground.

Separately at Davos, U.N. Secretary General Ban Ki-Moon urged a resumption of dialogue between Western powers and Iran on the nuclear issue. He said Friday that Tehran must comply with Security Council resolutions and prove conclusively that its nuclear program is not directed at making arms.

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George Jahn can be reached at http://twitter.com/georgejahn

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