[sunnykerr]

Upheaval in Germany is probably the last thing the EU needs, as an organization.

On the other hand, trouble with the EU is so prevalent that it hardly seems worth trying to avoid.

[markede]

In today's world the changes are more rapid.The things are unfolding rapidly.There is much competition of survival and success.I think the survival of the fittest is the core things of today's highly competitive world.

[quaist]

Originally Posted by markede (View Post) In today's world the changes are more rapid.The things are unfolding rapidly.There is much competition of survival and success.I think the survival of the fittest is the core things of today's highly competitive world.

This is certainly true. Sadly, those people who can't stand this pace, are the ones being left behind.

[sunnykerr]

Fair enough... But now we need to find something concrete to talk about.

[sunnykerr]

Here I got again, posting about things I don't fully understand:

Yahoo says Tumblr will boost revenue by 2014 Yahoo says its $1.1bn (£723m; 857m euros) purchase of blogging platform Tumblr will boost its revenue as soon as 2014. Yahoo's chief financial officer, Ken Goldman, made the claim during a call with analysts, although he did not give firm numbers. Its chief executive Marissa Mayer said Tumblr would operate independently, in a promise "not to screw it up". Tumblr founder David Karp will continue as chief executive officer. The deal values Mr Karp's stake at $275m. The deal is the largest made by Ms Mayer since she took the helm at Yahoo last July, and she described the acquisition as a "unique opportunity." "On many levels, Tumblr and Yahoo couldn't be more different, but at the same time, they couldn't be more complementary," added Ms Mayer. Mr Karp, 26, who owns 25% of the privately-owned company he co-founded with Marco Arment in 2007, said he was "elated" to have the support of Yahoo. "Tumblr gets better faster with more resources to draw from," he added. Mr Karp emphasised that neither its aims or team was changing as a result of Yahoo's purchase.

Full article

So the BBC analyst says this is an attempt by Yahoo to increase traffic and regain relevance. If that's the case, I should think it will be a successful venture, because I often like I'm the last person in the world who hasn't been on Tumblr.

I don't think it'll change much for users over the short term, though. Especially if they do indeed continue to operate independently of one another.

I guess we'll see.

[sunnykerr]

Sweet conspiracy? Nestle, Mars charged with chocolate price-fixing in Canada Three companies are facing conspiracy charges over their alleged role in fixing chocolate prices in Canada, the Competition Bureau announced Thursday. The bureau uncovered evidence suggesting that Nestle Canada Inc., Mars Canada Inc. and ITWAL Limited, a network of wholesale distributors, conspired, agreed or arranged to fix prices of Canadian chocolate products – a criminal offence under the Competition Act. Three individuals were also charged: Robert Leonidas, former President of Nestle Canada; Sandra Martinez, former President of Confectionery for Nestlé Canada; and David Glenn Stevens, President and CEO of ITWAL. The accused face a possible fine of up to $10 million and/or imprisonment for a term of up to five years. "We are fully committed to pursuing those who engage in egregious anti-competitive behaviour that harms Canadian consumers," said John Pecman, Interim Commissioner of Competition, in a statement. "Price-fixing is a serious criminal offence and today's charges demonstrate the Competition Bureau's resolve to stop cartel activity in Canada." In a statement on its website, Nestle Canada said it would “vigorously defend” the charges, adding that it operates “with the highest ethical business standards.” The allegations date back to 2007 and earlier, according to the company. A fourth company, Hershey’s Canada, has also been implicated; however, because it cooperated in the investigation, the bureau is recommending it receive lenient treatment. The bureau first became aware of the price-fixing cartel through its immunity program. The program helps parties receive immunity for providing evidence leading to a referral of evidence to the Public Prosecution Service of Canada or disclosing offences not yet detected by the bureau. To secure a conviction, the bureau must prove competitors agreed to fix prices and that the agreement was likely to have an undue economic effect on the market.

Source

Obviously, this is a very serious story.

But it's come to a point in the Canadian business world where you have to laugh, because it's just so outrageous. I mean, fixing the price of chocolate? Really?

Besides, I don't suppose this means the price of chocolate and/or chocolate products made and distributed in Canada will now go down.

You'd think it would, though, wouldn't you?

[sunnykerr]

EU agrees euro rescue fund guidelines for banks Eurozone finance ministers have agreed guidelines on how the eurozone's emergency bailout fund can inject money directly into struggling banks. Enabling the 500bn euro ($660bn; £427bn) European Stability Mechanism to directly help banks is seen as a key move in stabilising the eurozone area. The ESM will be able to inject a total of 60bn euros into troubled lenders. But the bank's national government, and its lenders and depositors, will still have to share the burden of any rescue. The new agreement is hoped to come into effect in late 2014. However, many details have still to be agreed. It is also subject to a new Bank Resolution and Recovery Directive to be agreed by all of the EU finance ministers - including non-eurozone countries such as the UK - on Friday. Vicious circle Previously, the ESM and its predecessor were only able to bail out national governments, but not banks. This proved problematic in the cases of Cyprus, Spain and the Republic of Ireland, where it was the country's banks that primarily needed rescuing. In each case, the national government had to foot the bill for rescuing its banks, leading to market fears that the losses at the banks may be more than the government could absorb. The bailout of Spain's banks in June 2012 was financed by the ESM, but only indirectly, with the Spanish government ultimately on the hook for future losses at its banks. The problem was compounded by the fact that most eurozone governments rely on their own banks to lend them the money they need. The new arrangement is expected to break this vicious circle between banks and their governments. Bail-in Direct bank recapitalisations by the ESM are intended to spread the risk of future bank rescues across the whole eurozone. However, eurozone governments with stronger finances and economies - led by Germany - have been seeking to limit the help provided by the ESM. The terms now agreed by finance ministers will still leave individual national governments on the hook for much of the risk of future bank rescues. In addition, the bank's shareholders, bondholders, lenders and even large depositors, may also have to contribute ahead of any funds from the ESM, a process known as a bail-in. The new Banking Directive is expected to lay out the terms of such a bail-in, which would apply across the whole EU. Current rules only require the bail-in of shareholders, and of junior bondholders and lenders - who have contractually accepted the risk. But the allocation of losses to large bank depositors was controversially included in Cyprus' bailout earlier this year, raising fears that the precedent could prompt large depositors to flee troubled eurozone banks in the future, worsening any financial crisis. "This instrument will help preserve the stability of the euro area and remove the risk of contagion of the financial sector to the sovereign, thus weakening the vicious circle between banks and sovereigns," said the chairman of eurozone finance ministers, Jeroen Dijsselbloem. "An appropriate level of bail-in will be applied before the bank is recapitalised by the [bailout fund], in line with EU state aid rules and applying principles of the forthcoming bank recovery and resolution directive," he added.

Full article

I'm not dumb enough that I don't know the difference between governments and banks.

And yet I'm still not sure what this different approach is all about.

Oh, well.

At least it sounds like they're trying new things, which I suppose is a good thing.

[sunnykerr]

Loblaw unveils $12.4B deal to buy Shoppers Drug Mart Loblaw Companies Ltd. announced plans Monday morning to purchase Shoppers Drug Mart Corp. for $12.4 billion in cash and stock, in a move the companies’ top executives promised would change the Canadian retail landscape. The deal would merge Canada's largest grocery and pharmacy chain under one umbrella. Under the terms of the deal – which is still subject to approval -- Loblaw would gain around 1,200 Shoppers locations, and begin carrying some of drugstore’s products. Shoppers will begin carrying Loblaw food products, but will retain its name, Loblaw executive chairman Galen Weston said. “This is a transaction about two complementary businesses,” Weston said during a news conference Monday. “We are changing the retail landscape in Canada.” Weston said the deal is about creating a Canadian “champion” specializing in health, wellness and nutrition. “Loblaw combining with Shoppers Drug Mart is the ultimate expression of that objective,” he said, adding the merger will allow the company to offer customers more products. Shoppers Drug Mart assured customers Monday that its popular Optimum points program will continue, despite the merge. "Hi everyone, Canada's favourite loyalty program will continue. No plans to change #Optimum for our valued @shopprsdrugmart customers," read a statement posted to the chain's official Twitter account. Shoppers says 10 million people are registered to collect Optimum points, which gives 10 points for every dollar spent. Canadian retailers have faced increasing competition from large U.S. chains like Target, Walmart and Costco -- all of which sell a combination of groceries, electronics and pharmacy products. “The grocery space is kind of under siege right now from a lot of other retailers," said Bobby Hagedorn, equity analyst at Edward Jones in St. Louis. "We're seeing increased competition, but the growth really isn't there, and that kind of lends itself to an acquisition-friendly environment." Some business leaders think that aside from the increase in size and scale for the promotion of private-label products, there is little in the deal that’s “revolutionary.” "This deal hasn't made Loblaws more competitive in the grocery space, as far as I'm concerned, or at least not to the degree that's worth 12 billion bucks," said Gareth Watson, vice-president at Richardson GMP Ltd. "I think the bottom line when it comes to this food industry is price, that's where the competition is coming from. I don't think this transaction really changes that competitive position whatsoever," Watson said. Last month, competitor Sobeys picked up Safeway’s Canadian assets for $5.8 billion, in a deal that included 199 pharmacies. Shoppers Drug Mart chair Holger Kluge said the merger will result in better customer service. “Both Loblaw and Shoppers Drug Mart share a passion for our customers and together we will be able to serve them better than we could alone,” he said. Shoppers president and CEO Domenic Pilla said he was confident the merger was a good “cultural fit.” “We strongly believe that now is the time and this is the deal,” he said. Earlier Monday, news of the merger dominated business headlines across the country. "George Weston Ltd., which owns 63 per cent of Loblaw and is the majority shareholder, says it is going to raise $500 million through the sale of new shares in order to finance the cash portion of the deal," BNN's Michael Kane said. Kane said many Shoppers locations sit on prime real estate and could potentially be folded into Choice Properties Real Estate Investment Trust -- a new entity which holds the land on which Loblaw stores are built. Shoppers shares (TSX:SC) rose by 24 per cent, or $11.72, to close Monday at $60.12 as investors reacted positively on the Toronto Stock Exchange. Loblaws shares also saw a boost and were up by five per cent at $50.13 a share. If the merger had been completed last year, the combined businesses would have totalled approximately $42 billion in revenue and $1 billion in free cash flow. Together, the companies expect to gain $300 million in savings after three years, without closing any stores. Pilla said the deal provides "significant and immediate value" for shareholders. "For our Associate-owners and employees, who are a valued part of the equation, it provides the opportunity to pursue rewarding careers as we grow together. And for our customers, it provides more locations with an enhanced mix of products and offerings that contribute to the good health of Canadians," he said. Loblaw is offering $33.18 in cash plus about six-tenths of a Loblaw common share for each Shoppers Drug Mart common share. At least two-thirds of Shoppers Drug Mart shareholders and a majority of Loblaw shareholders must approve the deal.

Source

I've of two minds about this deal.

On the one hand, something has to be done for Canadian businesses to compete with the American "invasion" of the business market which, no offense to my American friends, just isn't good in the long run for the Canadian economy.

On the other hand, monopolies also aren't good for the Canadian economy.

So I really don't know which is the lesser of the two evils here.

[quaist]

Detroit is down the tubes financially:

Legal battle brews over Detroit bankruptcy filing DETROIT -- While Detroit emergency manager Kevyn Orr on Friday was offering short-term reassurances to thousands of city pensioners whose benefits are in jeopardy, his lawyers were waging a whirlwind legal battle over the constitutionality of the bankruptcy filing that could land both sides before a federal judge early next week. On Friday, Michigan Attorney General Bill Schuette said he will appeal an Ingham County judge's ruling that Detroit's bankruptcy filing must be withdrawn because it violates the Michigan Constitution and state law. However, the order from Ingham County Circuit Judge Rosemarie Aquilina ultimately could have little effect because the bankruptcy case already was filed in federal court, and federal law generally trumps state law. The city filed a motion requesting to include the state as a party in the bankruptcy code's provisions that put on hold all lawsuits against the city, a clear attempt to fight the Ingham County ruling by preventing the state from being sued in similar fashion. The city is asking U.S. District Judge Steven Rhodes to hold a hearing on Tuesday, or earlier, to decide this and other matters. Friday's legal wrangling marks the beginning of what is expected to be a lengthy bankruptcy process that will involve more than 100,000 creditors, which include the Police and Fire Retirement System and the General Retirement System and its 20,000 retirees. Orr provided retirees some temporary relief Friday, telling the Detroit Free Press that pension and health care benefits are safe for at least the next six months. "We have made a decision that for the balance of this year, the next six months, we're not touching pension or health care," Orr said in an interview with Free Press editors and reporters. "So all pensioners, all employees you should understand: It's status quo for the next six months." The announcement was welcome news to Thomas Berry of Livonia, who retired from the Detroit Police Department six years ago after more than 34 years on the job. "I think that's huge," Berry said. "You've given me five months to evaluate. We're going to sock away more and maybe spend a lot less." Orr has not yet specified the cuts to pensions he will seek through the bankruptcy process. He has proposed freezing pensions and moving workers to a 401(k)-style plan to help alleviate the pension systems' unfunded liabilities of $3.5 billion. He also wants to move retirees to Medicare or health care exchanges being set up through the Affordable Care Act. Orr, alongside Michigan Gov. Rick Snyder, spent Friday in a series of public appearances and meetings explaining why it was necessary for Detroit to file for bankruptcy protection and how the lengthy process is likely to affect the city's residents, workers and retirees. The duo stressed bankruptcy was long overdue, and is the best path to resolve the city's liabilities of about $18.5 billion. They said services to residents will improve. Orr said the lawsuits from pension boards and others didn't spur the filing. He said he was simply running out of time. "We're dealing with 60 years of deferred maintenance in 18 months," Orr said during a news conference at Wayne State University, referring to the length of time in which he'll oversee the city. Still, Orr singled out retirees and pension fund lawsuits filed in recent days to try to stop the state-approved bankruptcy filing, based on the argument that the state's constitution prevents the city or state from cutting protected pension benefits for retirees. Orr deflected criticism from union leaders and pension officials that he wasn't bargaining in good faith in recent weeks, citing lawsuits opponents filed. "That's the very thing I had pleaded for not to happen," said Orr, standing next to Snyder. "Anyone who thinks I wasn't negotiating in good faith, when they're suing me, look at that context." In a spate of orders out of Ingham County Circuit Court arising from three separate lawsuits, Aquilina said Snyder and Orr must take no further actions that threaten to diminish the pension benefits of city of Detroit retirees. "I have some very serious concerns because there was this rush to bankruptcy court that didn't have to occur and shouldn't have occurred," Aquilina said. Lawyers representing pensioners and two city pension funds got an emergency hearing with Aquilina on Thursday at which she said she planned to issue an order to block the bankruptcy filing. But lawyers and the judge learned Orr filed the bankruptcy petition in Detroit five minutes before the hearing began. Aquilina said the Michigan Constitution prohibits actions that will lessen the pension benefits of public employees, including those in the city of Detroit. Snyder and Orr violated the constitution by going ahead with the bankruptcy filing, because they know reductions in those benefits will result, Aquilina said. "We can't speculate what the bankruptcy court might order," said Assistant Attorney General Brian Devlin, representing the governor and other state defendants. "It's a certainty, sir," Aquilina replied. "That's why you filed for bankruptcy." Devlin said Snyder has to follow both the Michigan Constitution and the U.S. Constitution. Schuette's office issued a statement saying an appeal has been filed on behalf of the governor in all three cases before Aquilina. Aquilina issued a declaratory judgment that says the bankruptcy filing violated the Michigan Constitution. She also ordered that a copy of her declaratory judgment be sent to President Barack Obama, saying he "bailed out Detroit" and may want to look into the pension issue. In the Schuette appeal, state attorneys say Aquilina abused her discretion and the question of a Detroit bankruptcy filing is now moot. "The governor has authorized the bankruptcy proceeding and the petition has been filed," the appeal said. University of Michigan law professor John Pottow said the issue could travel up the court system, all the way to the Michigan Supreme Court. Or it could be answered decisively and quickly in bankruptcy court, he said. "There's nothing that precludes a federal judge from adjudicating the constitutionality of the Michigan statute," Pottow said. "The bankruptcy judge can interpret Michigan law." Snyder said the decision to file for bankruptcy was based on the unmistakable conclusion there was no other option for a city that had reached the end of the line. Detroit, he said, was done in by decades of residential and business flight to the suburbs, loss of its manufacturing base, chronic overspending and mismanagement and corrupt leadership, all reaching a climax as the economic meltdown and the national housing crisis hit. "Let's get to the point of saying enough is enough," Snyder said. "This is 60 years of bad outcomes. Let's do something about it, finally." Meanwhile, Aquilina is scheduled to hold a hearing at 9 a.m. Monday to decide whether Snyder has the authority to approve a bankruptcy filing that would affect accrued pension benefits.

[sunnykerr]

I suppose the writing had been on the walls for a couple of years on that one.

I mean, I even remember Michael Moore's documentaries from a decade-plus ago and things didn't seem to be going well for Detroit at all then either.

I know people feel like the auto industry received some substantial bailouts from the federal government and that's not really an area of expertise for me, so what do I know? But it seems to me like the bailouts the auto industry got were nothing to what the banking industry received.

And, perhaps more to the point, if any money that comes in goes first and foremost to line the pockets of shareholders and CEOS... it's not gonna have too much of an impact, is it?

[quaist]

Apart from the bailouts, which were most certainly rather misdirected like you pointed out, I guess it would have been substantially important for Detroit to open itself to other types of businesses.

Apparently, the demise of the auto industry loomed ahead for decades and they didn't do anything about it.

A possible role model could've been Pittsburgh, which managed to successfully cope with its transition from a steel city to a prospering location for jobs in the education sector, health care and other fields.

[sunnykerr]

Yeah, I'm really not sure why the city of Detroit never tried to diversify.

I don't know if it's because so much of its identity is tied in with being Motor City or what.

That doesn't really seem like a good enough reason, to be honest.

But you never know what dumb reason may be in play.

[sunnykerr]

Possible good news for Canadians:

Tribunal set to rule on alleged anti-competitive Visa, MasterCard practices A ruling expected this week on a complaint against Visa and MasterCard could significantly change how consumers use credit cards in Canada. The federal Competition Tribunal is set to issue a decision Tuesday on whether rules imposed on merchants by the credit card giants are too restrictive. Striking down the rules could allow merchants to either reject certain cards that offer incentive points, or charge consumers more for using them. Under the current rules, merchants are required to accept all Visa and MasterCard offerings, but are prevented from charging an additional fee to those who pay with so-called premium cards, which come with higher costs. Canada's Commissioner of Competition filed a formal complaint with the tribunal in May 2012, accusing Visa and MasterCard of engaging in anti-competitive behaviour. Consumers have been forced to pay an estimated $5 billion worth of hidden fees each year as a result, the complaint says. "Without changes to the rules, merchants will continue to face high costs for accepting credit cards, and all consumers, even those who use lower-cost methods of payment like debit or cash, will continue to pay higher prices," commissioner Melanie Aitken said in a statement at the start of hearings. The rules allow Visa and MasterCard to charge ever-increasing interchange fees to merchants who accept their cards without allowing them the choice of rejecting those cards that carry higher fees, says the Retail Council of Canada. "We're very hopeful that the tribunal recognizes that there needs to be changes in the way this market functions," said David Wilkes, the council's senior vice-president. Interchange fees are charged by the banks and credit card companies on every credit or debit card transaction. Credit card interchange fees range from a low of 1.54 per cent for accepting a basic card to as high as 2.65 per cent for so-called "premium" cards that offer cardholders travel points or other incentives. Debit transactions, meanwhile, are based on a flat fee per transaction.

Source

Obviously, my use of the words "good news" is premature and probably ridiculously so.

I don't really believe that, should these hidden charges be struck down, the companies would then pass on the savings to their customers by reducing prices and/or fees.

I just don't.

They'd continue to line their pockets and that would be that.

[sunnykerr]

Ex-Goldman Sachs trader Fabrice Tourre liable in $1bn fraud A New York jury has found former Goldman Sachs trader Fabrice Tourre liable for fraud in a complex mortgage deal that cost investors $1bn (£661m). Jurors concluded that the trader, who nicknamed himself "Fabulous Fab", had misled investors in the run up to the global financial crisis in 2008. Complex mortgage investments played a significant role in the crisis. Mr Tourre was found liable in six of the seven fraud claims brought by US financial regulators. He was accused by the Securities and Exchange Commission (SEC) of misleading investors about investments linked to subprime mortgages that he knew would fail. Because the case is civil rather than criminal, he faces possible fines and a ban from the financial services industry. 'Surreal and dream-like' The exact punishment will be determined at a later hearing. In his closing arguments, SEC lawyer Matthew Martens described Mr Tourre's testimony as "surreal, imaginary, unreal, dream-like". He was also described by the regulator as the "face of Wall Street greed". Two years ago, the disclosure of emails from Mr Tourre sparked widespread debate about Wall Street's role in the financial crisis. In them he described himself as Fabulous Fab, saying of the financial markets that the "whole building is about to collapse anytime now". "Only potential survivor, the Fabulous Fab... standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!" Subprime mortgages became increasingly popular in the US in the years before the financial crisis. They were mortgages given to borrowers at higher risk of being unable to pay the money back. These high-risk loans were repackaged by banks into more complex mortgage investments and sold on to other banks, causing chaos in the banking system when borrowers began to default. Responding to the verdict, Andrew Ceresney, co-director of the SEC's enforcement division, said: "We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street." The SEC has faced criticism over its efforts to hold banks and their employees accountable for the financial crisis, which pushed the US and other global economies into recession. According to its website, the commission has charged 157 firms and individuals so far, including 66 senior executives, and has secured $2.7bn in fines and penalties. Goldman Sachs settled its case with the SEC in 2010, paying $550m without admitting or denying any wrongdoing.

Source

This isn't bad.

But it's just such a joke, this whole thing.

These people ruined lives, and whatever fines they have are always paltry in comparison.

Nevermind the fact that they're back at the same practices that led us to this catastrophe in the first place.

Oh, maybe some of the faces have changed, but it's the same scheme anyway.

[quaist]

I'd assume people like this Mr Tourre are just the tip of the iceberg.

There have to be some convictions over defalcations in order to calm the masses, but we know there haven't been any substantial changes to the very system that let the whole financial crisis happen in the first place.

So...