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That same logic, of course, can be applied to other euro area countries. On one hand, officials want investors to distinguish between different credit conditions. On the other hand, they insist they will not allow EMU to fail. As we have learned over the last couple of years, this does not preclude sovereign debt restructuring (Greece and Cyprus), and even capital controls (Cyprus). |
The peripheral premium over Germany was narrower prior to the crisis. There was even a brief shining moment that Spain traded through Germany (this is to say that yields slipped marginally below German yields). Continued easing of ECB monetary policy can see spreads compress further. However, it is unreasonable to think the spreads can return to status quo ante, as the risk of debt restructuring must be perceived as higher than before. |
Managers of large pools of capital recognize there are not sufficient bunds available. Recall that next year, the German coalition government has committed itself to a balanced budget. That means new supply is not going to be forthcoming. French bonds are seen as the next best alternative, and they offer a slightly higher yield to boot. Simply, if crudely put, French bonds are to German bunds, what Agency debt is to US Treasuries. |
Without the push of necessity, French politicians find it difficult to do the right thing. They are reluctant to declare a break from the German ordo-liberalism's drive for fiscal austerity, but refuse to embrace it. Last month, Hollande unilaterally declared no more effort to reach the EC budget targets that had already been postponed. The EC implicitly threatened to reject it, but reports suggesting that Merkel was reluctant to push France hard, possibly fearing to do to the AfD, what Cameron has done for the UKIP. |
Instead, the EC accepted some cockamamie sleight of hand. France would cut its structural deficit by 0.5% instead of 0.2% as Hollande initially proposed. This would be accomplished by 1) assuming lower debt servicing costs, 2) reducing its EU budget contribution, 3) proposing nearly a billion euro savings from a crackdown on tax evasion. Recall that Brussels had expected, and France had previously agreed to a 0.8% reduction in its structural deficit. |
Perhaps Merkel was worried about the rise of the National Front in France. Le Pen embraces the social welfare state of France. It sees the biggest threat to it, not coming from the discipline being imposed by what Thomas Friedman has called the "golden straightjacket", but by the encroachment of French sovereignty. The culprit is the German fist inside the EC glove and enshrined in the monetary union. |
Yet the leaders of France's main political parties are doing more to boost the National Front than anyone, including, arguably, Marine Le Pen. She often claims that there is significant collusion between the major parties. She says that the Socialists and the UMP are a single self-interested group. The developments in France this week provide her with the proverbial smoking gun. |
Consider this: Hollande's chief of staff Jouyet is a personal friend of the French President. He also served in the Sarkozy government. He reportedly had lunch with Sarkozy's rival in the UMP, Fillon, who was also a prime minister in Sarkozy's government. Among the things they talked about was the investigation into overspending by the Sarkozy re-election campaign in 2012. |
What are not agreed upon are the reports that suggest Fillon, threatened by Sarkozy's attempt at a political comeback, wanted the Hollande government to expedite the investigation. The idea was hit Sarkozy quickly and hard to derail his hope to be elected as the head of the UMP next month. Yet, it does seem Sarkozy himself is struggling without any help. Ever since he threw his hat in the ring, his support in the polls has deteriorated. Last month, his candidate to head the Senate lost, suggesting Sarkozy's support in the UMP is not insurmountable. |
Hollande's has the lowest support of any French president since the end of WWII. He is half-way through his five-year mandate, and he recently indicated he would not seek re-election if there were no improvement in the unemployment rate. It is an idle threat. Barring a miracle, he cannot win, and the Socialist Party may dump him. We might be witnessing the slow and painful death of the Fifth Republic. The other republics ended by war or a coup, but this one may be ending due to self-immolation. The Socialist candidate who ran against Sarkozy in 2007, S. Royal, who was once Hollande's life partner, used to talk about a Sixth Republic. |
Although Merkel is recognized as the outstanding leader in Europe, she is playing with a strong hand, the hand that holds the purse. France has a weak hand, and yet despite the lack of strong leadership, it has done remarkably well in pursuing its agenda. It has been given more time to reach the 3% deficit/GDP mandate. After years of complaining about the strong euro, in word and deed the ECB is now driving the euro lower. |
France has wanted the ECB to pursue aggressive monetary policy, which it now is. The ECB will likely increases the range of assets it is buying under its version of QE and if may include corporate bonds. Given that the French capital markets are more developments than most in the euro area, including Germany, its corporate bond market is among the largest. Almost 45% of the corporate bonds issued by Eurozone companies are accounted for by French businesses. |
After Russia occupied two areas in Georgia after the 2008 conflict, and its continuous in attempts to intimidate it neighbors, France thought it reasonable to sell Russia two ships that can be used for amphibious assaults. France has been reluctant to renege on its contract, which reportedly has penalty clauses for failure to deliver. However, within weeks of the expected delivery of the first ship, there is talk of an alternative. Reports suggest that NATO could be favorable disposed to buy the ships from France. Perhaps the logic is that it is better to own them then possibly fight against them. |
Asset managers are unlikely to declare a capital strike against France. The premium France pays over Germany for 10-year money is about 36 bp presently. In the past six months, the premium has approached 30 basis point a few times, but never penetrated. The mid-September low of 31 bp was the smallest French premium in three years. This seems to be the floor. |
The ceiling seems to be about 47 bp, which it neared three times in the past six months, most recently on October 20. Recall that, in the four years before the crisis, there were several occasions where the French yield dipped slightly below the German yield. In any event, pre-crisis, France did not pay more than a 10 bp premium. |
Neither international capital, represented by asset managers nor the EC is going to force France to enact structural reforms. In addition, there is even less of a chance that Hollande makes a clean break and announces an aggressively pro-growth fiscal initiative. This means the continuation of the charade, yet the status quo is toxic. The political elite are committing a French version of hara-kiri. What fertile terrain for the National Front. |
The Volstead Act was repealed on this date in 1933, returning control of alcohol to the states, and it was a happy day at the F.X. Matt Brewery. |
UTICA, N.Y. -- A total of 85 years ago Wednesday marked the end of prohibition, which meant legally drinking beer again. And for the Matt family from Utica – that meant getting back to selling beer again. |
They let customers and suppliers know that at midnight, they could deliver, buy, and drink beer at the brewery once again. |
The local business managed to survive 13 years. |
"Kept it going with soft drinks and malt tonic and malt syrups, but this was a special day. In fact, he sent a letter out to announce beer was available at midnight, the next day, actually,” said F.X. Matt Brewery CEO/Chairman Nick Matt. |
Matt says sales dropped off 75 percent when prohibition went into effect. And thanks to the current craft beer movement, business has been growing by leaps and bounds. |
Nelson Mandela statue in Westminster, London. |
"Comrade Mandela's release was achieved through our struggles that had pushed the apartheid regime into a corner where they were forced to negotiate their way out of power," he said. |
"Mandela's freedom from his prison cell was also brought about because of unrelenting pressure by our international allies." |
"We are eternally grateful that he had lived to enter a new country. Here in the Western Cape we pledge to continue Mandela's fight for a just society." |
Ronny Deila blamed a rutted, ploughed Hampden pitch for his side's failure to inflict League Cup embarrassment upon Rangers. |
Denying they removed their feet from the pedal after the break Deila warned the SPFL the awful pitch wasn't good enough - and wrecked his team's efforts to play passing football. |
Asked if he urged his players to consolidate their lead at half-time the Norwegian insisted: 'I didn't say that – I said to go for three. |
'But we wanted to really go and just kill the game. |
'But we killed it another way – we were solid at the back and kept them away from the goal. |
'We wanted to attack more, but I have to make the excuse as well that we are a passing team and we had no chance to pass the ball on that pitch. |
Relaid in the aftermath of the Commonwealth Games the surface at the National Stadium cut up badly during Dundee United;s victory over Aberdeen in the other semi on Saturday. |
Urging Hampden plc and the SPFL to make sure the surface if repaired adequately before the first showpiece final of the season on March 15 Deila added: 'If you are going to develop Scottish football you need pitches you can play football on. |
'If you are going to go four or five months with poor pitches all over the country then every game will be in the air. |
'If you are talking about Champions League it's not even near. |
'This is the national team's stadium – it has to be much better. |
Delighted with his side's first half display – less so with the second – Deila savoured his first experience of an Old Firm derby. |
'It can't be better. It was a very good day. |
'There was an unbelievable atmosphere in the stadium. |
The Celtic boss will now turn his attentions to transfer reinforcements today with an increased bid for Dundee United Stuart Armstrong expected. |
A £1.5million offer was rejected on Friday and the midfielder would miss the League Cup Final, cup tied if he made the move. |
Declining to expand Deila added: 'We want to add people tomorrow and keep everybody. We are now in the critical period. On Tuesday we will know the answer, which will be good for you and for me. |
Celtic have also secured Tannadice winger Gary Mackay-Steven on a pre-contract agreement in the summer and must decide whether to pay £250,000 to secure him now. |
Bolton Wanderers could also launch a formal bid to sign Celtic goalscorer Kris Commons today, despite Deila insisting the 31-year-old is staying. |
Celtic are also considering a move for South Korean free agent Kim Bo-Kyung. |
Back in 1982, the Endangered Species Act took the ocelot under its protection. The ocelot is a vulnerable creature, susceptible to habitat changes like roads, agriculture, housing developments and trapping. There may be fewer than 100 left in southern United States. |
Concerns that the United States Department of Agriculture (USDA) is making the plight of these 'dwarf leopards' worse led the Animal Welfare Institute and WildEarth Guardians to take legal action against the USDA's Wildlife Services program. They are suing Wildlife Services for "failing to ensure that it is not harming ocelots." |
Wildlife Services describes itself as a program that resolves human - wildlife conflicts so people can "co-exist" with nature, but often, their solution to wildlife problems involves traps and cyanide capsules. They use these methods to deal with predators that are bothering farmers, but The Animal Welfare Institute and WildEarth Guardians say ocelots are getting caught in the cross-fire, killed by methods that can't tell the difference between an ocelot and a fox. |
"Wildlife Services routinely fails to comply with federal laws like the Endangered Species Act," said Tara Zuardo, wildlife attorney with the Animal Welfare Institute in a press release. "Few ocelots remain in the United States and they require basic protection to ensure that they are not killed by the devices—such as steel-jaw leghold traps and cyanide capsules—Wildlife Services indiscriminately uses on public lands to kill wildlife." |
This is not the first time the methods of Wildlife Services have been criticised. This June, the Washington Post reported it had killed more than 4 million animals through poisoning, snaring and shooting in 2013 alone. |
But from year to year, the number of animals killed by the program fluctuates significantly, from 1.5 to 5 million. In 2008, 5 million animals were killed while over the next four years it was 3 million.The number is not rising, as Wildlife Services suggests, causing critics to question their justification for their methods. |
So far, their secretive approach has gone relatively unnoticed. Now, the Animal Welfare Institute and WildEarth Guardians are trying to change that. |
Why do CEOs need extravagant perks even when they are firing staff and pleading for taxpayer bailouts? It may just be in their makeup, experts say. It takes arrogance and narcissism to become leader of a Fortune 500 company. Those same traits, however, have become their undoing during the deepest recession in decades. |
U.S. President Barack Obama has noticed, telling reporters on Thursday he was outraged by a New York State report that $18.4 billion in Wall Street bonuses were paid in 2008 as taxpayers rescued the crumbling financial system. "That is the height of irresponsibility. It is shameful," Obama said. |
New York State Attorney General Andrew Cuomo, who is investigating Wall Street bonuses, welcomed Obama's comments. "While Wall Street melted down, top executives believed that, unlike the rest of the country, they still deserved huge bonuses," Cuomo said. |
For Bob Monks, a former executive who has written nine books on corporate governance, the reason is that the rich and powerful simply love their toys. "It's a boy thing. Sort of, 'Mine's bigger than yours.' It's really childish," said Monks, a shareholder rights activist and the subject of a book called "A Traitor to His Class." |
Monks related a story about flying on someone's corporate jet. The host was devastated when, upon landing, he saw that while he planned for a limo to be waiting at the airport another captain of industry had a helicopter take him to town. "I thought my guy was going to die. ... It's entirely about people's self-image." |
Longtime advocates of shareholder rights were handed a gift in November when Detroit auto executives flew to Washington on corporate jets to ask for billions of dollars in taxpayer money, sparking a public outrage. |
More recently, it became known that former Merrill Lynch CEO John Thain spent $1.2 million remodeling his office last year, including $1,405 for a trash can. Merrill Lynch is owned by Bank of America, which consumed $45 billion of taxpayer money through bailouts. |
Then on Tuesday, Citigroup canceled plans to buy a $50 million executive jet after a White House rebuke. |
"People don't become head of Merrill Lynch without having a certain sense of self-importance. Once they arrive at that position, they have all kinds of toadies tell them what geniuses they are, then of course they begin to feel their lifelong feelings of self-importance have been confirmed," said Charles Goodstein, a psychoanalyst and professor at New York University School of Medicine. |
Defenders of executive perks say generous compensation is needed to retain talent. Sometimes it's jets but can also include home security systems, country club memberships, sports tickets and financial advice. The value of these benefits is considered income, so CEOs also sometimes get another perk: company help in paying their taxes. "I was CEO of a bank once and it's not rocket science. You need the same skill set as somebody running a hardware store in a medium-sized town," Monks said. |
Steve Thel, a former lawyer with the Securities and Exchange Commission and now a professor at Fordham Law School, blames compliant board members who often come from the same privileged world and can get paid hundreds of thousands of dollars for attending a few meetings each year. "It's endemic to the system. The last administration didn't think there was any structural flaw. Now across the political spectrum people feel that Wall Street executive compensation is out of control," Thel said. He predicted Congress would pass legislation granting minority shareholders more say on pay and possibly introduce higher taxes on some parts of executive compensation. "A year ago it was absolutely unthinkable that this would be heard in Congress," Thel said. |
Assembly Minority Leader Pat Hickey, R-Reno, will have a GOP primary election opponent in 2014. |
Richard Fineberg, a retired lawyer who specialized in workers compensation cases, confirmed Tuesday he would run against Hickey in the Assembly District 25 race. |
Now, the two Republicans who guided the Washoe school-tax bill (AB46) from the Legislature to the Washoe Commission — Hickey and Assemblyman Randy Kirner — both have GOP primary opponents. |
Earlier, Lisa Kransner announced she would take on Kirner in the District 26 GOP primary. Kirner & Hickey were partners in getting AB 46 shipped to the commission, thus avoiding a tax-hike vote for Washoe school refurbishing in the Legislature that could have proven awkward. |
Yet some constitutional conservatives — who adhere to the "no new taxes' ideology — were angered that Kirner and Hickey did not just kill the bill in Carson City. |
Fineberg declined comment until after the holiday week. |
He is a member of the Washoe County Republican Central Committee, has a B.A. in Psychology from UCLA and got his law degree from Southwestern University School of Law. |
Fineberg is described as a constitutional conservative who is big on the 2nd Amendment rights (guns). |
No doubt, Kransner and Fineberg will try to run to the right of the two incumbents. That is what you do to beat entrenched incumbents who are considered moderate. |
Northeastern International Airways suspended service on all but one of its routes after an unsuccessful attempt to attract passengers with new cut-rate fares. The airline, which filed for bankruptcy Tuesday, suspended ''until further notice'' flights to Chicago, Philadelphia and Orlando, St. Petersburg and West Palm Beach, Fla., a spokesman said. It is continuing flights between Islip, N.Y., and Ft. Lauderdale. A Northeastern flight from Chicago to Florida was canceled Wednesday because of mechanical problems. The privately held Ft. Lauderdale-based airline owes some $15 million to creditors. Under mounting pressure from creditors, Northeastern terminated flights to a number of cities earlier this week. The operation was undercapitalized and ran into problems after a quick expansion. |
Friday Night Live: Hilarious Improv Comedy featuring live music from pianist Keith Munslow! Get beside yourself with FNL’s interactive scenes, on-the-spot musicals, improvised song, dance, and skits! Performances are intended for audiences of all ages, personality types, and food groups. Friday Night Live unites a diverse cast of veteran Everett artists and young up-and-coming performers, in the production of fun, funny, creative, and meaningful performances! $5 at the door – All ages show – Families always welcome! |
Mystic Aquarium, 55 Coogan Blvd. |
DAVIDSON, N.C., Jan. 10, 2019 /PRNewswire/ -- Rocus Networks, a managed cybersecurity service provider for business, announced today that it has entered the Palo Alto Networks NextWave Managed Security Service Provider (MSSP) Program. |
"We created the MSSP program due to increased customer demand for managed security services and to provide a better way to connect businesses with service providers," said Karl Soderlund, Senior Vice President, Worldwide Channel Sales at Palo Alto Networks. "As part of our NextWave MSSP program, partners like Rocus Networks can continually and efficiently improve security effectiveness for our mutual customers, and accelerate the deployment of new security services." |
"This program with Palo Alto Networks allows Rocus Networks to provide organizations, regardless of size, with best-in-class next-generation security technology without the need to hire dedicated security personnel," said Michael Viruso, Rocus Networks Chief Strategy Officer. "They get cloud-delivered, enterprise-level security that is easy to use and won't disrupt business operations." |
The Palo Alto Networks NextWave MSSP Specialization empowers managed services partners with the most innovative technology in the industry, protection on registered deals and best-in-class training, all to provide our mutual customers with the technical expertise and services they require of their trusted security advisers. |
To learn more about Rocus Networks, visit rocusnetworks.com. |
Do Twinkle and mum Dimple share a wardrobe? |
The star wife was missing for a greater part of the year from public glare due to her pregnancy. Twinkle chose to wear an Abu Jani-Sandeep Khosla outfit, the same one her mother Dimple had worn last November at the 25th anniversary bash of the designer duo. |
McDonald’s jumped 5.3 percent after the world’s biggest fast-food chain by revenue topped analysts’ forecasts for profit and sales. |
Shares of oil refiner Andeavor surged 14.4 percent, the biggest percentage gainer on the S&P 500, after rival Marathon Petroleum agreed to buy the company for more than $23 billion. Marathon’s shares slid 4.2 percent. |
“The big news was really the deals, that continue the trend of strong M&A environment,” said Aaron Clark, portfolio manager at GW&K Investment Management in Boston, Massachusetts. |
Walmart rose about 2 percent after Sainsbury’s agreed to buy the UK arm of Walmart, Asda, for about $10 billion, while Marriott Vacations Worldwide said it would buy timeshare operator ILG Inc for $4.7 billion, sending the target company’s shares up 4.5 percent. |
Another big deal announcement was that of T-Mobile’s $26 billion takeover of fellow wireless carrier Sprint . Sprint shares fell 13.5 percent as analysts said it could face antitrust hurdles and the offer was seen as less favorable than an earlier one. |
“Muted reactions to what was very strong earnings, capex spending picking up and strong M&A applies to what I’d say is part of classic late-cycle behavior,” said Clark. |
At 11:36 a.m. ET, the Dow Jones Industrial Average was up 125.42 points, or 0.52 percent, at 24,436.61, the S&P 500 was up 4.38 points, or 0.16 percent, at 2,674.29 and the Nasdaq Composite was up 7.74 points, or 0.11 percent, at 7,127.54. |
U.S. bond yields edged lower after data showed March personal income rose lesser-than-expected, and personal spending in February was revised down to 0.3 percent, from the previously reported 0.4 percent. |
Of the 274 S&P 500 firms that have reported first-quarter earnings so far, 79.2 percent topped profit expectations, according to Thomson Reuters data. That has lifted the estimate for earnings growth to 24.6 percent from about 18 percent at the start of the season. |
Healthcare stocks were a drag, led by Celgene’s 6 percent fall after Morgan Stanley noted it expects delay of up to three years for the company’s key multiple sclerosis drug. |
The S&P healthcare index was was down about 0.6 percent. |
Arconic plummeted 15.2 percent after the aluminum products maker slashed its 2018 forecasts for profit and free cash flow as higher prices of the metal squeezed profit margins. |
Allergan Plc reversed course to fall 4.1 percent after its chief executive officer said he was opposed to fundamental changes to the drug company’s business strategy. |
Advancing issues outnumbered decliners for a 1.16-to-1 ratio on the NYSE and for a 1.04-to-1 ratio on the Nasdaq. |
the World Challenge a year ago. He won at Hilton Head on the U.S. |
Championships in Doral and Shanghai. |
the way up to No. 12. |
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