Thursday, February 14, 2008

According to the Brazilian Institute of Geography and Statistics (IBGE), the 2007 rate of employment in Brazil was 2.2% higher then figures for 2006. According to the IBGE the employment figures are at their highest since 2001.

The IBGE reported growth in employment levels for all the 14 regions surveyed, with the highest rates of increase being recorded in the states of São Paulo (with an increase of 3.5%) and the state of Paraná (with an increase of 3.1%). Região Nordeste and Minas Gerais had increases of 1.4% and 1.5% respectively.

According to the IBGE, the industries with the biggest increase in employment figures were food and drink, transport, metal and machinery. The biggest falls in employment figures were in footwear, woodwork and clothing.

Tuesday, October 14, 2008

The San Diego, California suburb of Chula Vista has responded to the recent housing crisis with an aggressive blight control ordinance that compels lenders to maintain the appearance of vacant homes. As foreclosures increase both locally and throughout the United States, the one year old ordinance has become a model for other cities overwhelmed by the problem of abandoned homes that decay into neighborhood eyesores.

Chula Vista city code enforcement manager Doug Leeper told the San Diego Union Tribune that over 300 jurisdictions have contacted his office during the past year with inquiries about the city’s tough local ordinance. Coral Springs, Florida, and California towns Stockton, Santee, Riverside County, and Murietta have all modeled recently enacted anti-blight measures after Chula Vista’s. On Wednesday, 8 October, the Escondido City Council also voted to tighten local measures making lenders more accountable for maintenance of empty homes.

Under the Chula Vista ordinance lenders become legally responsible for upkeep as soon as a notice of mortgage default gets filed on a vacant dwelling, before actual ownership of the dwelling returns to the lender. Leeper regards that as “the cutting-edge part of our ordinance”. Chula Vista also requires prompt registration of vacant homes and applies stiff fines as high as US$1000 per day for failure to maintain a property. Since foreclosed properties are subject to frequent resale between mortgage brokers, city officials enforce the fines by sending notices to every name on title documents and placing a lien on the property, which prevents further resale until outstanding fines have been paid. In the year since the ordinance went into effect the city has applied $850,000 in fines and penalties, of which it has collected $200,000 to date. The city has collected an additional $77,000 in registration fees on vacant homes.

Jolie Houston, an attorney in San Jose, believes “Lenders will respond when it costs them less to maintain the property than to ignore local agency requirements.” Traditionally, local governments have resorted to addressing blight problems on abandoned properties with public funds, mowing overgrown lawns and performing other vital functions, then seeking repayment afterward. Chula Vista has moved that responsibility to an upfront obligation upon lenders.

As one of the fastest growing cities in the United States during recent years, Chula Vista saw 22.6% growth between 2000 and 2006, which brought the city’s population from 173,556 in the 2000 census to an estimated 212,756, according to the U.S. Census Bureau. Chula Vista placed among the nation’s 20 fastest growing cities in 2004. A large proportion of local homes were purchased during the recent housing boom using creative financing options that purchasers did not understand were beyond their means. Average home prices in San Diego County declined by 25% in the last year, which is the steepest drop on record. Many homeowners in the region currently owe more than their homes are worth and confront rising balloon payment mortgages that they had expected to afford by refinancing new equity that either vanished or never materialized. In August 2008, Chula Vista’s eastern 91913 zip code had the highest home mortgage default rate in the county with 154 filings and 94 foreclosures, an increase of 154% over one year previously. Regionally, the county saw 1,979 foreclosures in August.

Professionals from the real estate and mortgage industries object to Chula Vista’s response to the crisis for the additional burdens it places on their struggling finances. Said San Diego real estate agent Marc Carpenter, “that kind of measure will add additional costs to banks that have been hit really hard already and ultimately the cost will be transferred down to consumers and investors.” Yet city councils in many communities have been under pressure to do something about increasing numbers of vacant properties. Concentrations of abandoned and neglected homes can attract vandals who hasten the decline of struggling neighborhoods. Jolie Houston explained that city officials “can’t fix the lending problem, but they can try to prevent neighborhoods from becoming blighted.”

CEO Robert Klein of Safeguard, a property management firm, told the Union Tribune that his industry is having difficulty adapting to the rapidly changing local ordinances. “Every day we discover a new ordinance coming out of somewhere”, he complained. Dustin Hobbs, a spokesman from the California Association of Mortgage Bankers agreed that uneven local ordinances are likely to increase the costs of lending. Hobbs advised that local legislation is unnecessary due to California State Senate Bill 1137, which was recently approved to address blight. Yet according to Houston, the statewide measure falls short because it fails to address upkeep needs during the months between the time when foreclosure begins and when the lender takes title.

Friday, September 15, 2006

BT Global Services this week laid out its vision for the next three years: its revenues to double in the USA, Japan, India and China, and £400m of annual savings, achieved through offshoring and slashing its procurement costs. £200m of this will come from a reduction in what it spends on technology from vendors on large systems integration projects.

CEO Andy Green admitted that BT had been slower than rivals such as IBM and Accenture to ramp up its offshore headcount. But he claimed that BT Global Services is thriving as the fastest-growing division within BT. He said that the division was outperforming its closest rivals, T-Systems, Orange Enterprise and AT&T Enterprise, which had all posted revenue declines for the most recent quarter. He said BT was fast becoming a familiar brand to businessmen in New York, Tokyo, Mumbai and Shanghai.

He disclosed a few revenue figures not revealed before. For the financial year ending March 2006, UK revenues rose just 2% to £5.5bn, while overseas revenues shot up 48% to £3.3bn. And of the £8.8bn total revenue, £1.6bn was captive work for its parent, while of the remaining £7.2bn, 18% came from the UK government sector and 17% from financial services. BT said it still harbours ambitions to conquer America, despite the failure of the ‘Concert‘ partnership with V in the 1990s.

In a separate story, BT announced it has chosen Chinese vendor ZTE to develop a dual-mode handset — 3G and DAB-IP — for launch by its BT Movio subsidiary next year. DAB-IP (in other words, IP over the DAB digital radio network) will enable BT Movio to broadcast four TV channels at acceptable quality to the handset.3G will enable video-on-demand, so that the users can specify what video clips or programmes they wish to watch. UK legislation specifies that no more than 30% of the DAB spectrum can be used for non-radio purposes, so BT is lobbying for more DAB spectrum to be released, to enable higher quality video and/or more TV channels.

Friday, November 4, 2011

Anglo American PLC has negotiated a price of US$5.1 billion to buy 40% of diamond giant De Beers from the Oppenheimer family. Anglo’s stake will jump from 45% to either 75% or 85%; the Botswanan government has an option to increase its own stake.

“This has been a momentous and difficult decision as my family has been in the diamond industry for more than 100 years and part of De Beers for over 80 years,” said De Beers chairman Nicky Oppenheimer. The Oppenheimers are selling their entire remaining stake in the company they took over in the 1920s. They retain 2% of Anglo, founded in 1917 by Sir Ernest Oppenheimer. Until Nicky’s resignation this year Anglo’s board has always featured an Oppenheimer.

As-of June De Beers assets totalled US$8.2 billion with US$1.2 billion pre-tax profit over the prior six months, compared to a US$863 million pre-tax profit last year. The firm owns two Canadian mines and one in South Africa, along with joint ownership with Botswana in two of the world’s biggest diamond mines.

Part of the sale deal promises the Oppenheimers will be given part of any value increase if the firm is floated within two years. Nonetheless, Anglo CEO Cynthia Carroll denied this means a flotation is planned. She also said there is no connection between the purchase, which is set to be finalised next year, and Chilean state-owned copper firm Coldeco’s recent major purchase of 49% of various Anglo property. The Oppenheimers receive 20% of any price increase if a float occurs within a year, and 10% if one happens the year after.

Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.

{{tasks|news|re-review}}Tuesday, January 9, 2018

On Monday, Democrats in the United States Senate announced they had gained enough sponsors to perform a congressional review of the Federal Communications Commission (FCC)’s December 2017 reversal of previous rules regulating Internet service providers, commonly called Net Neutrality.

Under the Congressional Review Act, if 30 senators co-sponsor the action, United States Congress can vote on whether to overrule a decision made by a federal agency such as the FCC. Both the House of Representatives and the Senate would have vote in favor, and President Donald Trump would have to sign the review.

On Monday, Claire McCaskill of Missouri announced she was the 30th senator to agree to sponsor the floor vote. “What I’ve heard from the thousands of Missourians who’ve contacted my office is simple — consumers should have protected, free, and open access to the online content of their choosing,” she said in a statement.

The Obama-era Net Neutrality rules were revoked last month. On December 14, as protesters gathered in Washington D.C., the United States Federal Communications Commission under Chairman Ajit Pai voted 3-2 to overturn the 2015 decision, which forbade Internet service providers (ISPs) such as Verizon, Comcast, and AT&T from blocking individual websites or charging websites or customers more for faster load times.

Specifically, the 2015 decision placed the Internet under Title II of the 1934 Telecommunications Act, which established that Internet access must be regulated under the same rules as a utility. Currently, in the U.S., telephones are regulated in this way, but cable television is not. Cable providers can offer bundled services and otherwise select which channels to offer customers; they do not have to offer access to every channel the way ISPs have offered access to the whole Internet. The new rules voted on December 14 transfer the Internet from the jurisdiction of the Federal Communications Commission to the Federal Trade Commission, which means instead of being forbidden from blocking websites or offering different access speeds, ISPs will only be required to disclose having done so.

Telecom analyst Gigi Sohn, who worked with Pai’s predecessor Tom Wheeler in 2015, said, “There are going to be fast lanes and slow lanes[…] As a consumer, that means some of your favorite websites are going to load more slowly, and it also may mean some of your favorite content goes away because the provider just can’t pay the fee.”

Former Etsy CEO Chad Dickerson said, “Net neutrality allowed something like Etsy to hang out a shingle on the web and give it a try”.

Supporters of the new rule argue Net Neutrality regulations were unnecessary. Commissioner Michael O’Reilly pointed out the Internet “has functioned without net neutrality rules for far longer than it has without [sic] them.”

“Quite simply, we are restoring the light-touch framework that has governed the internet for most of its existence,” said Chairman Pai, who argued removing the rules would make the Internet freer and more open.

“[T]he internet will continue to work tomorrow just as it always has,” promised AT&T Senior Executive Vice President Bob Quinn, who said his company would not block websites or discriminate with respect to content.

Opposition was organized almost immediately and was not limited to plans for congressional review: The Attorneys General for the states of New York and Washington have both announced plans for lawsuits against the new rules.. The United States Congress also has the authority to overrule the FCC’s decision by passing legislation. One such bill, House Resolution 4585, or the “Save Net Neutrality Act of 2017,” was introduced to the U.S. House of Representatives on December 7.

According to a poll conducted the week of December 6 by the University of Maryland, more than 80% of registered U.S. voters opposed the repeal of Net Neutrality, 75% of registered Republicans, 89% of registered Democrats, and 86% of independents, those not registered to either party. Before the vote, the FCC had accepted comments on the measure from the public through its website, FCC.gov. However, there have been allegations that many of the comments offered in support of the rollback were fakes. Before the vote took place, attorneys general from seventeen states and the District of Columbia sent a letter to the FCC asking the vote be delayed until the matter could be investigated.

The FCC’s decision must be published in the U.S. Federal Register before congressional review can take place or any lawsuits filed.

[edit]

Wednesday, February 6, 2008

In appearances before Congress on Wednesday, Defense Secretary Robert Gates and a top military official are expected to underscore decreased violence in Iraq. But they are likely to face strong questioning from lawmakers about ongoing war costs.

When President George W. Bush‘s budget for the 2009 fiscal year was sent to Congress this week, Secretary Gates defended the $515 billion request from the Pentagon.

In the overall figure, he noted, are billions of dollars to support U.S. military operations in Iraq and Afghanistan and the administration’s global war on terrorism. “A $70 billion emergency bridge fund that would cover war costs into the next calendar year,” he said.

The story behind that figure is the ongoing struggle between President Bush and the Democratic-controlled United States Congress over war funding.

Last year, the president asked for about $190 billion in a supplemental request outside the regular defense budget for war costs in the current 2008 fiscal year. The amount approved by Congress, just over $86 billion, left a large gap.

When Gates and military Joint Chiefs of Staff Chairman Admiral Michael Mullen appear before the House and Senate armed services committees, they will be pressed for harder cost projections, as Congress continues to assess the impact for the U.S. economy of the Iraq and Afghanistan conflicts.

White House Budget Director Jim Nussle was asked this week if the Bush administration has a realistic hope it can obtain its Pentagon regular budget and supplemental war funding requests from an opposition Congress. “It’s worth whatever we need to spend and we have made, I think, a very careful determination of what that is. So, I don’t believe it is just a negotiation point. I think it is what it takes for us to be safe, and to be the kind of super power that can maintain that safety,” he said.

Asked why budget figures do not appear to reflect a reduction in costs because of the eventual withdrawal of about 30,000 troops from Iraq to pre-military surge levels, expected to be complete later this year, Nussle would only refer reporters to the Pentagon.

And while the question of troop levels will be a key topic for lawmakers, in the context of questioning on the overall Pentagon budget, Gates may not provide much in the way of enlightenment.

Media reports quoting testimony prepared for the House and Senate hearings say he will point to what he calls significant variables weighing against making any realistic estimate of how much Congress may be asked for in the final year of the Bush administration.

Based on numerous supplemental requests for Iraq and Afghanistan in recent years, members of Congress expect the $70 billion bridge fund to be followed by additional requests to sustain U.S. forces.

As for the $100 billion or so in 2008 supplemental funds that has been held up by bickering between Capitol Hill and the White House, congressional Democrats are looking to testimony in April from the U.S. commander in Iraq, General David Petraeus.

That will provide Congress with an update on progress by Iraqi forces toward shouldering more of the security burden, what that means for U.S. troop numbers, and what Americans can expect to be paying as President Bush leaves office and a new administration takes over in 2009.