Key data missing at troubled Bank of Cyprus - inquiry

This article talks about some key data of the bond purchase missing from the year 2007 - 2010. Data - deleting software's were found but it is not yet clear that the data was deleted by accident or deliberately.These came into light after an investigation was carried out by Alvarez and Marsal a financial consultancy. The Bank of Cyprus bought bonds worth 1.9 Bn euros which turned into losses after the Greek debt crisis. Alvarez and Marsalhave also scrutinised the banks operations in Russia and Romania.

Laika which is the second largest bank is also going to be investigated as there were signs that Cyprus government bonds were also purchased by Laika. They are also going to investigate Laikis role outside Cyprus and the parties involved in it. All these findings would be submitted to a special judicial panel which has been appointed by the Cypriot government to find out what happened leading to this financial crisis and also to find and pinpoint any wrongdoing.

http://www.bbc.co.uk/news/world-europe-22041122

Longterm Unemployed are becoming helpless

http://finance.fortune.cnn.com/2013/04/05/march-jobs-report-fed/

Last month, the US economy only added 88,000 jobs, compared to 268,000 jobs in February 2013 and the average of 187,000 a month since september of 2012. For those who have only been out of work a short time, the economy is normalizing again and finding a job isn't as difficult as it has been recently. However, the long term unemployed, or those out of work for six months or longer, are in a tough situation. Employers are choosing to hire the 'freshly' unemployed workers over the long unemployed because employers assume "the longer people are out of work, the more they forget, and the more out-of-date their skills become." This may or may not be true depending on the situation, but unfortunately it is the view that potential employers have. The long term unemployed make up about 40% of the unemployed right now and people need to be weary about how the read the unemployment rate. Yes, the overall rate may be dropping, but it is partly to the long term unemployed giving up looking for work, not because they actually found jobs. The Fed has passed policies recently that keep interest rates low, increase home sales, and create jobs, but unless something changes, employers are going to look at the long term unemployed in the same light, which does not bode well for them.

Shipping industry getting manhandled by the green cause

http://www.economist.com/news/business/21574517-shipowners-face-onslaught-new-environmental-laws-sinking-under-big-green-wave

The naval shipping companies have seen a decline in their ability to ship products due to increased competition from the land and air based shipping companies so their profit margins are being diminished. They are also being hurt by the fact that the green agenda with their gas prices being up 50% and also the emissions of the companies are required to lose about 20% percent of emissions by 2020 making it really hard for them to keep up with the air and ground, maybe making shipping by water obsolete.

US 10-year yields dip on growth, Cyprus worries

This article discusses why the US T-notes are yielding slower growth earnings. The data shows a slowdown in US manufacturing - Factory activity grew at the slowest rate in 3 months. Additionally, worries about the wider impact of Cyprus's bailout deal kept low-risk assets in demand. The 10-year yield could rebound later on, however, if US lawmakers were to decide to retroactively cancel the spending cuts in coming months.

The BRAIN Initiative

http://www.utsandiego.com/news/2013/apr/02/Qualcomm-joins-Obama-Administration-BRAIN-project/

This article discusses Obama's plan to give $100 million to the BRAIN (Basic Research through Advancing Innovative Neurotechnologies) Initiative. The BRAIN Initiative is a research project aimed at giving us a better understand of the human brain so that we can better treat mental health conditions like Alzheimer's  and epilepsy. This article brings to mind two topics: 1) in the midst of our current budget situation, as we are trying to reduce the deficit and are cutting spending in several different areas, is this the best way to use $100 million? 2) this article relates to our recent discussion of living standards in different countries and how they can be improved. One method we mentioned was to fund research and development, which is exactly the case in this article. Whether or not this is the best time to pledge $100 million to the BRAIN Initiative, I think that this move will definitely work to improve living standards in the future. If this project is as successful as predicted, it will allow us to vastly improve medical care for those with mental illnesses, and I think that that alone accounts for an improvement in living standards in the U.S.

Cost of Driving

http://www.economist.com/blogs/graphicdetail/2013/04/daily-chart-2

I shared this article because i feel it is interesting. This article talks about the cost of purchasing cars compared to cost of running them in major cities around the world like Delhi, Shanghai, Sao Paulo, London, Paris, New York, etc and talks about cost of cars as a measure of real prices across the world. Certain surprising facts pointed out are that the cost of driving is way less in New York and London compared to cities like Delhi, Shanghai, Rome, etc.

German economic output 'at near stagnation'

This article talks about a slow down in the German economy last month. It was observed that this economy is near stagnation. The PMI ( Purchasing managers index ) which measures both the manufacturing and services showed that the index fell from 53.3 to 50.6 last month. The french economy also contracted as its rating fell to 41.9. This is the biggest contraction the french economy has seen in four years.

The index for the euro zone as a whole fell from 47.9 to 46.5 . This shows that the euro zone recession is deepening again because business have become worried about the recent political instability and the recent Cyprus debt crisis.

http://www.bbc.co.uk/news/business-22024606

American Superconductors Corp. on the Rise

I was told about this firm a few weeks ago to keep a watch on. For those of whom who pay no attention to penny stocks, look away. Everyone else get ready...

So, two or three years ago American Superconductor Corp. (AMSC) was at a peak in stock price performance and had captured 80% of market share; unstoppable. Then all of a suden the share price dropped and market share was taken by a customer, Sinovel, based out of China. There have since been lawsuits filed but no cases have been seen in Chinese courts.

Seeing the stage set like this, I think AMSC is something to watch in the news and on the ticker. There have been some investors putting big stakes on a big win for AMSC, with even a few price targets set at $38 and above for after trial.

Oh and by the way, their earnings looked pretty good otherwise.

If you had the money, if you shook out your piggy bank you probably will, would you make the investment?


Case Details: http://spectrum.ieee.org/green-tech/wind/a-test-case-for-intellectual-property-in-china

"Apple is the new JC Penny"

I have said this almost 6 months ago while working at Merrill Lynch. This was back when Apple had released rumors of the new iPad and new iPhone 5. The stock had seen a surge and many investors were happy. My guesstimation was a surge to $700 and then a drastic fall that could do some serious damage.

Now, I am not saying I am any type of genie or psychic, but seriously, think about this. Has Apple come up with anything new and crazy in the past, say, two years? Siri you say? Well that technology has existed for a while. So, in short, nothing ground breaking.

Kramer predicts a similar outcome. He sees the next Apple product release to seriously hurt the equity and be a "big loser."

Whether you are an Apple or PC fanatic, what do you see in Apple's future?

Cyprus rescue plan will require great efforts, IMF says

This article talks about the recent 10 billion euro international bailout for the Cyprus financial sector. The plan to go ahead was agreed about a weak back which would help in stabilizing the banking system and government finances. This plan is going to cause heavy loses for depositors in the nations two largest banks the bank of Cyprus and Laiki. Even after a conclusion has reached on the bailout the government has still placed restrictions to make sure that a large sum of money doesn't leave the country as it would cause further damages.The restrictions include a daily withdrawal limit of 300 euros from the ATM machines and a maximum of 1000 euros can be taken out of the country. The new finance minister Harris Georgiades, said that the restrictions would be taken out eventually when the situation starts to stabilize.

The IMF which has agreed to contribute a maximum of 1Billion euro has said that for this bailout to be successful it would require a lot of support from the Cypriot population. Cyprus currently faces high levels of unemployment levels which currently stand at 15% and its GDP fallen by 3.5 % this year. It plans to recover this by increasing taxes and cutting down on government spending. After seeing this crisis the IMF also commented that changes in the banking supervision and transparency would be seen.

http://www.bbc.co.uk/news/business-22014500

IMF and Egypt discuss crisis management loan

http://www.bbc.co.uk/news/business-22013318

The political turmoil in Egypt during the Arab Spring resulted into an escape of foreign capital and investment and as a result, the Egyptian pound has already lost one tenth of its value since the beginning of 2013. This escape in foreign capital increases interest rates in Egypt and decreased exports, requiring from Egypt serious and urgent economic reforms so that the political leadership can increase its approval rate and to improve overseas confidence, in order to improve investment and exports rates.  Since usually loans from the IMF are provided only with certain conditions, analysts expect that Egyptian government will have to approve austerity measures such as tax rises, cuts to fuel and bread subsidies, on top of the cuts already in place for food and fuel imports (due to lack of funds and high inflation), which have sparked protests. Social unrest helped in reducing the number of tourists (a vital industry in Egypt), which further increased pressure on political leadership “to construct a plan which would build domestic confidence, investment and economic growth." Politicians with seemingly autocratic intentions, such as President Mursi are also not helping the situation. By creating conflicts between the leading party (the Muslim Brotherhood) and the opposition, the IMF has already cancelled and aid package that was due in November, delaying even further economic help for the people who really need a large economic boost in Egypt to succeed in their business. In order to provide an interval for these deep-seated problems, Egyptian political leadership should stop pursuing self interest in consolidating power and reach across the table for economic liberalization and further democratization of its institutions.

Why Job numbers need to be accurately predicted

http://blogs.wsj.com/economics/2013/04/03/can-anyone-predict-jobs-numbers/

In this article, the author talks about how difficult it is to predict job growth numbers accurately. Though typically, the monthly Labor Department report is considered to be quite accurate, a large number of private organizations have also started estimating and predicting job growth numbers. In principle, it is better to have a number of sources for data on job statistics, though most of these private firms are not able to provide accurate data and predictions. But the fact is that they all have only recently developed their methods of data collection. Therefore, one needs to give them time in order to start competing with, and hopefully correcting, the Labor Department report.
Employment statistics are now more important than ever because the future of the Fed's current monetary policy depends on them. As the unemployment goes down, the Fed will stop keeping the interest rates so low and would reduce the effect of the accommodating monetary policy. Hence, accurate jobs estimates are important to investors as well as consumers.  

Can Microsoft survive in a post-PC world?

http://money.cnn.com/2013/04/01/investing/microsoft-windows.moneymag/index.html?iid=SF_M_Lead

 Microsoft is playing catch up with releasing radically new version of Windows for the PC and tablet market last October. Microsoft continues to launch new merchandise with things such as the new Surface tablet with attachable keyboards. Windows 8 is the newest software on the PCs, but it is only run on 2.3% of desktops vs 7.7% for Windows 7 three months in. It is said that less than 1 million regular Surface tablets have sold. Roger Kay of Endpoint Technologies' is quoted saying, "Microsoft really whiffed with a strange interface for regular PCs." Windows is slowly going down it is no longer the cash cow that it used to be. Microsoft is staying alive because of all the success in the past and with its very successful programs such as Excel and Word. Although Microsoft is in no danger, but it is losing its reputation with products being produced and not being that successful. I would no worry about Microsoft in the short run, but what about the long run for Microsoft?

Jay-Z's latest venture: Sports agent

http://money.cnn.com/2013/04/02/news/companies/jay-z-sports-agent/index.html?iid=HP_LN


Shawn "Jay-Z" Carter can do it all. The famous music artist has opened his own entertainment company (RocNation) which is centered around the music industry, managing artists, songwriters, producers and engineers. The man has even created his own line of clothing called Rocawear. It wasn't until recently that he finally has moved into the sports management. He expanded his company into the sports management market and his first client is New York Yankee's superstar Robinson Cano, who is supposed to be the number one player of the free agent market after this next MLB season. Quite the impressive first client for Shawn. Who knows what he will do next.

A rise in US Factory orders

http://www.nytimes.com/2013/04/03/business/economy/factory-orders-climb.html?_r=0

This article is about the increase (of 3%) in orders placed at American factories from the month of January to February. They say that is was due to a volatile demand surge for commercial aircrafts. This suggests that business investment is going to experience a steady increase, therefore influencing the trade balance and net exports. At the same time, there have been speculations that the job market is on the improving path too, so hope has not been lost after all!

Cyprus bailout: Finance Minister Michael Sarris quits

This article talks about the 66 year old Cyprus Finance minister Michael Sarris who resigned after completing talks on the controversial bail out deal. Sarris was appointed the finance mister in February and was under fire for his handling of this bailout deal. He has now been replaced by the labor minister Haris Georgiades. Sarris was head of the country's largest bank Laiki , whose performance almost lead to the financial collapse of the country.

The president has ordered an investigation to find out what factors led to almost bankruptcy of the country and Sarris agreed that in order to facilitate the work it was a right decision to hand in his resignation which was accepted by the President .

http://www.bbc.co.uk/news/world-europe-22005240

The internet has always amazed user, helping us improve our knowledge, buy products and even plan and schedule trips. As this new “branch” of the economy rises, it has to adapt to the different demands that arise with time, and on the internet, that means the requirement of a different currency that is easier to trade and that is widely accepted by people. Bitcoins, a virtual currency, has increased in value as the financial crisis in Cyprus and Europe shakes consumer confidence in traditional banks. Bitcoins are earned online, by completing difficult computing tasks or even by selling your own inventory. They then go to a virtual wallet and can exchanged between people directly, bypassing banks and other monetary institutions since it virtually costs nothing to transfer them to other users. Because they are stateless, they cannot be taxed, frozen or easily traced, and some experts think Bitcoin could be the first step in a virtual money evolution. Bitcoins, however, have been susceptible to hacker attacks, which can steal or manipulate the accounts with the virtual currency. Nevertheless, for now it seems that Europeans have had more faith in the virtual currency than the physical one in their pockets, which could indicate a shift to a new virtual economy.

http://www.bbc.co.uk/news/technology-21990136

The internet has always amazed user, helping us improve our knowledge, buy products and even plan and schedule trips. As this new “branch” of the economy rises, it has to adapt to the different demands that arise with time, and on the internet, that means the requirement of a different currency that is easier to trade and that is widely accepted by people. Bitcoins, a virtual currency, has increased in value as the financial crisis in Cyprus and Europe shakes consumer confidence in traditional banks. Bitcoins are earned online, by completing difficult computing tasks or even by selling your own inventory. They then go to a virtual wallet and can exchanged between people directly, bypassing banks and other monetary institutions since it virtually costs nothing to transfer them to other users. Because they are stateless, they cannot be taxed, frozen or easily traced, and some experts think Bitcoin could be the first step in a virtual money evolution. Bitcoins, however, have been susceptible to hacker attacks, which can steal or manipulate the accounts with the virtual currency. Nevertheless, for now it seems that Europeans have had more faith in the virtual currency than the physical one in their pockets, which could indicate a shift to a new virtual economy.

Groundbreaking Patent rejection in India

http://www.bbc.co.uk/news/business-21992724

 

India´s court system rejected a legal bid by pharmaceutical company Novartis to patent a new version of its cancer drug, Glivec. The ruling was welcomed by many healthcare campaigners, including NGOs such as Medecins Sans Frontiers said that the decision will mean that generic drugmakers can still sell cheaper copies of Glivec in India. Novartis argues that the court´s decision will discourage future innovation and is a setback that will hinder medical progress for diseases that have no effective medical treatment. Officials in India, however, argued that the updated version was only slightly different from the previous one, but its high cost would deny access to medical care for many low income families. This practice of big companies of trying to get fresh patents by making only minor changes to existing drugs, a practice known as "evergreening" and although it provides market exclusivity for these profit maximizing firms, it does so at the expense of denying access to health and other benefits by low income families and individuals. With this new law, the abusive practice of seeking many patents for one drug will be curbed, reinforcing the idea that economic growth aligned with equalitarian practices and with individual´s interests (especially the poor) put as priorities can still develop a country in a fairer way.