May 122018
 
 May 12, 2018  Posted by at 9:26 am Finance Tagged with: , , , , , , , , , , ,


Pieter Bruegel the Elder Dulle Griet, also known as Mad Meg 1563

 

If Real Consumer Spending Doesn’t Reverse Course, Look Out Retail Stocks (Street)
Apple Made More Profit In 3 Months Than Amazon In Its Entire Lifetime (CNBC)
Facebook Faces Class Action Lawsuit Over Collecting Texts And Call Logs (G.)
Mark Zuckerberg’s Control Of Facebook Is Like A Dictatorship: CalSTRS (CNBC)
Facebook ‘Very Serious’ About Launching Its Own Cryptocurrency (CNBC)
There Will Be No Trade War With Germany, New US Ambassador Promises (R.)
Turkey Remains A “Priority Market” For British Weapons (MEE)
Erdogan Slams Rating Agencies For Upgrading ‘Bankrupt’ Greece (K.)
PDVSA To Shut Curacao Refinery Amid Fight With Conoco (R.)
Canada Sued Over Years Of Experimentation On Indigenous People (G.)
Maasai Herders Driven Off Land To Make Way For Luxury Safaris (G.)
Plastic Bag Found At The Deepest Point In The Ocean (SA)

 

 

Remember, 70% of US GDP. Coming from a population whose majority are maxed out.

If Real Consumer Spending Doesn’t Reverse Course, Look Out Retail Stocks (Street)

With the Amazon beast breathing down their necks, the last thing struggling retailers need is a cautious U.S. consumer. Yet, that’s exactly what they have gotten in recent months — and if it persists, retail stocks are likely to take it on the chin this summer. Real consumer spending took a nosedive in the first quarter (chart below) as consumers assessed the impact President Trump’s tax reform plan. Not helping matters was a more volatile stock market, rising inflation and a cooling U.S. labor market. In turn, consumer sentiment has remained stuck in a range since February. Retail stocks have followed suit.

The VanEck Vectors Retail ETF (RTH) is down about 7% since hitting a high on Jan. 29. This week has brought bearish notes on department stores like Macy’s from Wall Street shops, citing fears of online competition and challenging first quarter sales conditions. Macy’s CEO Jeff Gennette will be speaking at TheStreet’s sister publication, The Deal’s, big corporate governance in June. “We think that real consumption growth will firm from 1.1% annualized in 1Q to 2.3% in 2Q. We continue to see similarities between this year and last that likely are related to abnormal patterns of tax refunds, and like last year, we expect real consumer spending to firm noticeably between 1Q and 2Q,” says JPMorgan & Chase strategist Daniel Silver. But even Silver doesn’t sound 100% convinced.

“But inflation likely will be much stronger in 2Q18 than it was in 2Q17, and higher prices should dampen real spending and erode some of the benefits associated with lower taxes.”

Read more …

But Bezos is the richest of them all.

Apple Made More Profit In 3 Months Than Amazon In Its Entire Lifetime (CNBC)

One word may explain Warren Buffett’s investment decisions on Apple and Amazon: profit. Last week Buffett both lamented on not investing in Amazon shares and revealed how he added massively to Berkshire Hathaway’s stake in Apple. The Oracle of Omaha’s moves may be explained by his philosophy of emphasizing a company’s historical financial track record versus putting credence in aggressive future forecasts from analysts. “I think it’s fair to say, we’ve never looked at a [analyst] projection in connection with either a security we’ve bought or a business we’ve bought,” Buffett said during a Berkshire Hathaway annual shareholder meeting in 1995, according to remarks found using CNBC’s Warren Buffett Archive.

Apple “is an unbelievable company,” Buffett told CNBC on May 3. “If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States.” The smartphone maker generated a $48.35 billion in profit during its fiscal 2017 and made $13.8 billion in net income during the March 2018 quarter. In comparison, Amazon’s total net income since inception is about $9.6 billion. The number was calculated by adding up all of Amazon’s annual net income figures since its inception to the company’s $1.6 billion profit in the March 2018 quarter.

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Will a US court now sanction Facebook’s spying?

Facebook Faces Class Action Lawsuit Over Collecting Texts And Call Logs (G.)

Facebook is facing a class action lawsuit over the revelations that it logged text messages and phone calls via its smartphone apps. In the lawsuit filed in Facebook’s home of the northern district of California, the primary plaintiff, John Condelles III, states that the social network’s actions “presents several wrongs, including a consumer bait-and-switch, an invasion of privacy, wrongful monitoring of minors and potential attacks on privileged communications” such as those between doctor and patient. Facebook collected the logs of text messages and calls, including the recipients and duration of the communications, through its apps for Android including Messenger when users opted into being able to send SMS from the app or give access to their contact lists.

“Facebook has collected and stored information in a scope and manner beyond that which users knowingly authorised. The practice is ongoing,” states the filing first reported by the Register. The extent of the collection was revealed when users began downloading and sifting through the data Facebook held on them following the Cambridge Analytica scandal. The plaintiffs allege that Facebook’s collection of the data from users’ phones breaches California’s Unfair Competition Law on three counts – including fraudulent business practice – in addition to the Consumer Legal Remedies Act and the Electronic Communications Privacy Act. [..] Facebook is also facing a class action lawsuit from both British and US lawyers as part of a case against the social network, Cambridge Analytica and two other companies for allegedly misusing the personal data of 71 million people.

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But they won’t sell their shares.

Mark Zuckerberg’s Control Of Facebook Is Like A Dictatorship: CalSTRS (CNBC)

The capital markets are a democracy, but that’s not how Facebook is being run, said Christopher Ailman, the chief investment officer of the California State Teachers’ Retirement System, known as CalSTRS. “There is something wrong,” he said Thursday on CNBC’s “Closing Bell.” “When Facebook changed its structure to take public money in, they should have changed their structure to a more open board structure, and we think that there’s a problem with having one person in charge of the company,” he added. CEO Mark Zuckerberg owns a majority of the voting rights to the company. That’s because the tech giant has dual-class shares.

Facebook’s Class B shares are controlled by Zuckerberg and a small group of insiders and have 10 votes per share. Class A shares only have one vote per share. The end result is that Zuckerberg and those insiders control almost 70 percent of the voting shares in Facebook. CalSTRS took on the issue in a recent op-ed in the Financial Times. CalSTRS portfolio manager Aeisha Mastagni wrote, “Why does Mr. Zuckerberg need the entrenchment factor of a dual-class structure? Is it because he does not want governance to evolve with the rest of his company? If so, this American dream is now akin to a dictatorship.”

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A long way from Satoshi.

Facebook ‘Very Serious’ About Launching Its Own Cryptocurrency (CNBC)

Facebook is “very serious” about launching its own cryptocurrency, according to a report from Cheddar. It’s not the first time the idea of a Facebook coin has been floated, but the plans take on some greater meaning in light of Facebook’s recently reshuffled executive structure and newly formed blockchain group. Blockchain, the decentralized record-keeping system, could help tackle some of Facebook’s most bothersome problems, like identity verification or advertising sales. It’s also the technology behind most cryptocurrencies, logging ownership and transfers of the digital tokens.

“Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications,” a Facebook spokesperson told CNBC in a statement. It would likely be years before Facebook’s work on blockchain and cryptocurrency became anything material, Cheddar reports, citing anonymous sources. The business news site also reports Facebook has no plans to hold an ICO, or initial coin offering.

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The cover of the new Der Spiegel doesn’t seem convinced.

There Will Be No Trade War With Germany, New US Ambassador Promises (R.)

The new U.S. ambassador to Germany said the row over Washington’s planned imposition of punitive tariffs on European goods would not trigger a trade war, adding that U.S. President Donald Trump only wanted “a level playing field”. In an interview with the Funke newspaper group, Richard Grenell insisted that the United States was awaiting proposals on how punitive tariffs could be averted. “Germans are doing a phenomenal job on trade,” he said. “There will be no trade war … We are talking with our friends to solve a problem.” The United States wanted to see Europe’s proposals before deciding what would follow the expiry of an already extended June 1 deadline to impose tariffs, he added.

Less than a week into the job, Grenell has already triggered headlines with his demand in a tweet that German companies in Iran should “wind down operations” immediately after Trump withdrew the United States from an international nuclear deal. In the interview, Grenell maintained the hard line on Iran that has caused dismay in Europe’s capitals, restating the U.S. government’s position that Europe must re-impose sanctions on Iran. “We expect our friends and allies to help us to bring Iran back to the negotiating table,” he said, adding that the United States had proof Iran had violated its commitment not to enrich uranium.

Read more …

Who’s going to protest Erdogan’s visit?

Turkey Remains A “Priority Market” For British Weapons (MEE)

Theresa May is set to roll out the red carpet for Turkish President Recep Tayyip Erdogan this weekend, as new figures reveal that Britain has sold more than $1bn of weapons to Ankara since the failed 2016 coup and subsequent crackdown under emergency powers, Middle East Eye can reveal. Turkey remains a “priority market” for British weapons, despite concerns from human rights groups and EU officials over the erosion of the country’s rule of law. Turkey is a fellow member of NATO and has cooperated with the EU in tackling the refugee crisis, but critics say that Erdogan’s government has arrested or sacked more than 100,000 state workers and members of the military in the wake of the coup attempt.

Unlike many other Western allies, London spoke out quickly after the coup, in which fighter jets bombed the Turkish parliament and troops opened fire on civilians. But the UK has remained largely silent as Turkey targeted not only the alleged plotters but also political dissidents, journalists and members of pro-Kurdish parties for “supporting terrorism”. Erdogan will meet the Queen and the prime minister during his three-day visit to the UK, starting on Sunday. It comes as the UK is making a Brexit push to boost trade with Ankara, but also in the middle of a snap Turkish parliamentary and presidential campaigns conducted under a state of emergency.

UK weapons sales since the attempted coup include a $667m deal for military electronic data, armoured vehicles, small arms, ammunition, missiles, drones, aircraft and helicopters. It also includes a $135m deal for BAE Systems to fulfil Erdogan’s plan to build a Turkish-made fighter jet. The jet deal was signed by May in January 2017 under an “open licence” to ease the transfer of military technology, and UK officials now reportedly wish to expand the deal by pushing for Rolls-Royce to win the engine contract. Lloyd Russell-Moyle, a Labour MP who recently travelled to northern Syria, where Turkey is involved in operations against the Kurdish YPG militia, told MEE: “The government has been increasing arms sales to Turkey as it has fallen into authoritarianism at home and warmongering abroad.

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When under fire…

Erdogan Slams Rating Agencies For Upgrading ‘Bankrupt’ Greece (K.)

Turkish President Recep Tayyip Erdogan took a fresh swipe at rating agencies on Friday over the recent downgrade and the negative outlook they have assigned for the Turkish economy, using “bankrupt” Greece as an example. “Don’t pay attention to them [the rating agencies]. They upgraded a neighbour [of Turkey] that has gone bankrupt by four points. They receive new debts and live with them,” he reportedly told the Turkish Union of Chambers and Commodity Exchanges (TOBB) Conference Hall. “Excuse me, but we are talking about a country that cannot pay its civil servants. How is this possible? I am talking about Greece”, he said.

Read more …

And the Dutch government is just standing by?!

PDVSA To Shut Curacao Refinery Amid Fight With Conoco (R.)

Venezuela’s state-run oil company PDVSA is preparing to shut a Caribbean refinery that is running out of crude amid threats by ConocoPhillips to seize cargoes sent to resupply the facility, according to two sources with knowledge of the situation. Conoco of the United States last week began legal actions in the Caribbean to enforce a $2 billion arbitration award by the International Chamber of Commerce (ICC) over the 2007 nationalization of its projects in Venezuela. The moves have disrupted fuel deliveries throughout the Caribbean, much of which depends on PDVSA. The PDVSA-operated 335,000 barrel-per-day Isla refinery in Curacao, which has not received new shipments from PDVSA since last week, plans to exhaust existing inventories in the coming days, the two sources said.

PDVSA is seeking ways to sidestep legal orders to hand over assets. The Venezuelan firm has transferred custody over the fuel produced at the refinery to the Curacao government, the owner of the facility, the sources said. In another legal move to avoid oil being seized, PDVSA transferred ownership of crude to be refined at Isla to its U.S. unit, Citgo Petroleum, one of the sources added. “The seizure in Curacao was enforced on Thursday, so the inventories’ custody was transferred. The refinery will eventually stop (operations),” the source said.

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Until the 1980s.

Canada Sued Over Years Of Experimentation On Indigenous People (G.)

A class action lawsuit has been filed in a Canadian court on behalf of the thousands of indigenous people alleged to have been unwittingly subjected to medical experiments without their consent. Filed this month in a courtroom in the province of Saskatchewan, the lawsuit holds the federal government responsible for experiments allegedly carried out on reserves and in residential schools between the 1930s and 1950s. The suit also accuses the Canadian government of a long history of “discriminatory and inadequate medical care” at Indian hospitals and sanatoriums – key components of a segregated healthcare system that operated across the country from 1945 into the early 1980s.

“This strikes me as so atrocious that there ought to be punitive and exemplary damages awarded, in addition to compensation,” said Tony Merchant, whose Merchant Law Group filed the class action. The lawsuit, which has not yet been tested in court, alleges that residential schools – where more than 150,000 aboriginal children were carted off in an attempt to forcibly assimilate them into Canadian society – were used as sites for nutritional experiments, where researchers tested out their theories about vitamins and certain foods. “The wrong here is that nobody knew it was happening. Their families didn’t know it was happening,” Merchant said. As the diet at the schools was known to be nutritionally deficient, the children were considered “ideal experimental subjects”, according to court documents.

It cites six schools, stretching from Nova Scotia to British Columbia, and links them to experiments carried out from 1948 to 1953. At times, researchers would carry out what Merchant described as trials aimed at depriving the children of nutrients that researchers suspected were beneficial. “So what they did on a systemic basis … they would identify a group of indigenous children in schools where they were being compulsorily held and they would not give them the same treatment,” said Merchant. “They used them as a control against experiments that they were doing in other places and they also used them to test certain kinds of foods and drugs.”

Read more …

Ban all hunting in Africa. Just stop it.

Maasai Herders Driven Off Land To Make Way For Luxury Safaris (G.)

The Tanzanian government is putting foreign safari companies ahead of Maasai herding communities as environmental tensions grow on the fringes of the Serengeti national park, according to a new investigation. Hundreds of homes have been burned and tens of thousands of people driven from ancestral land in Loliondo in the Ngorongoro district in recent years to benefit high-end tourists and a Middle Eastern royal family, says the report by the California-based thinktank the Oakland Institute. Although carried out in the name of conservation, these measures enable wealthy foreigners to watch or hunt lions, zebra, wildebeest, giraffes and other wildlife, while the authorities exclude local people and their cattle from watering holes and arable land, the institute says.

The report, released on Thursday highlights the famine and fear caused by biodiversity loss, climate change, inequality and discrimination towards indigenous groups. “Losing the Serengeti: The Maasai Land that was to Run Forever” uses previously unpublished correspondence, official documents, court testimonies and first-person testimony to examine the impact of two firms: Thomson Safaris based in the United States, and Otterlo Business Corporation based in the United Arab Emirates. It says Thomson’s sister company, Tanzania Conservation Limited, is in a court battle with three Maasai villages over the ownership of 12,617 acres (5,106 hectares) of land in Loliondo which the company uses for safaris.

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20 years ago already. Imagine today.

Plastic Bag Found At The Deepest Point In The Ocean (SA)

Humanity’s toxic addiction to plastic has reached stunning depths, and we only wish we were speaking figuratively. A new study analysing over 30 years’ worth of data on human-made trash found in the deepest parts of the ocean reveals almost 3,500 pieces of plastic and other debris have been discovered littering these remote, fragile ecosystems. If proof were ever needed that there are no more untouched places left on our poor, polluted planet, we now have it in one perfect, twisted symbol: amongst this litany of garbage, the deepest-lurking refuse was a fragmented single-use plastic bag, discarded at a depth of 10,898 metres (35,754 ft) in the Mariana Trench.

The Mariana Trench is the deepest part of the entire ocean, home to distant, alien forms of marine life we know next to nothing about, but its remote, almost unreachable location doesn’t mean we haven’t found ways to carelessly spoil it [..] In the thousands of debris images and videos the researchers compiled in their database, deep-sea organisms were observed in 17% – damning evidence that our throwaway culture entangles, intermingles, and generally affects ocean life in ways we’re not aware of. Because the team’s dataset only includes a visual record of what’s on the sea floor – not what’s drifting and sinking above it – the researchers say they’ve only scratched the (deep) surface of the problem here, although simple physics suggests more garbage is headed this way.

Read more …

Home Forums Debt Rattle May 12 2018

This topic contains 11 replies, has 6 voices, and was last updated by  tabarnick 3 months, 1 week ago.

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  • #40574

    Pieter Bruegel the Elder Dulle Griet, also known as Mad Meg 1563   • If Real Consumer Spending Doesn’t Reverse Course, Look Out Retail Stocks (St
    [See the full post at: Debt Rattle May 12 2018]

    #40575

    V. Arnold
    Participant

    Wow; Pieter Bruegel the Elder; Dulle Griet, also known as Mad Meg 1563.
    I clicked the picture, which revealed a lot of information.
    The picture itself is rich in color and images, including the mouth of hell, anthropomorphized in a gross human head.
    Mad Meg is a very unattractive figure which would fit the narrative, which by todays standards, I find funny in an amused way…

    #40576

    Some of those guys in the southern Netherlands/Flanders had some weird visions back in the day. Jan van Eyck, Bosch, the Bruegels, they all lived in that small part of the world, in different times (15-16-17th century). They didn’t know each other, and we don’t know if they knew of each other. Maybe it was something in the soil or the air.

    #40577

    V. Arnold
    Participant

    Raúl Ilargi Meijer
    That’s interesting; I wonder how much the church influenced their work?
    My guess would be, quite a bit.
    That image of the mouth of hell, and Mad Meg leading the women to plunder hell smacks of a strong influence of the church and its dogma.
    Maybe a renunciation of it?

    #40578

    It was all church all the time. But somewhere during the period Luther came in. Who must have been compared to Satan more than Satan himself at the time. And all of his followers were certain to go to hell. Still, I don’t think we know enough of the painters to understand where exactly they stood in all of this.

    #40579

    V. Arnold
    Participant

    Ilargi
    Indeed, it’s all conjecture.
    Pity; it would have been nice, but likely dangerous, to extrapolate the symbolism of their work during that period.
    But then, hasn’t art always been interpreted? The inquisition comes to mind, often to a deadly end…

    #40580

    Diogenes Shrugged
    Participant

    Syria is just part of a deal Trump couldn’t refuse.

    To his credit, Assad recognizes that Trump’s just a middle man:

    https://www.rt.com/news/426342-trump-assad-deep-state-syria/

    #40581

    tabarnick
    Participant

    What do you do if you have a sparse population of illiterate hunter-gatherers that live hundreds of kilometers away from the richer, more educated population able to provide health care and higher education? If you leave them alone then, since there is no economic activity that can generate any sort of the income needed for supporting a modern lifestyle, you will be excoricated for your racist neglect, for leaving a portion of your population in a backward (aka traditional) lifestyle. If you provide them with education and care down south with the goal of integrating them into the general population, there will be angry shouts calling you white supremacists and cultural genociders, you will have to apologize and you have got a lawsuit coming. If you go the separate, Indian hospital road, then there will be angry shouts about apartheid, you will have to apologize and you have got a lawsuit coming.

    #40588

    Nassim
    Participant

    This is just so funny:

    Got Those Climate Change Blues
    A meteorologist and journalist struggles with climate change depression

    https://www.sierraclub.org/sierra/2018-2-march-april/last-words/eric-holthaus-got-those-climate-change-blues

    This article appeared in February 2018 – and was probably written in the depths of the American winter.

    People who live in a cold climate are far more worried about the fake “Global Warming” narrative – because that is what a cold climate does to your brain.

    Here in Cairns, I am living in an Airbnb house while looking for a proper abode. There is a constant stream of northerners who arrive totally wooden and after a few days, they start to become almost human. The landlady and I joke about it.

    Two days ago, a Danish student couple (age 20) arrived and were very difficult to communicate with as they were so shy and withdrawn. Yesterday, the girl told me that she is planning to wear her bikini tomorrow. Amazing. Such progress in only 2 days. She is even smiling sometimes. 🙂

    #40589

    sumac.carol
    Participant

    Tabernick the story of Aboriginal people in Canada us much more complex than what you have described. Take a look at the book The Inconvenient Indian for a start. How would you justify the experimentation on Aboriginal children as described here? How do you justify the government forcing Aboriginal people onto reserves located on the worst land which was highly contaminated? This is not just a question of the inconvenience of accommodating a small sparse population. The explicit government agenda was to extinguish Aboriginal culture.

    #40590

    Nassim
    Participant

    This is absolutely amazing. Someone leaked a video of a large number of Israeli military intelligence people singing a famous Iranian song. Here is their version:

    https://www.timesofisrael.com/video-of-idf-soldiers-singing-persian-love-song-goes-viral-in-iran/

    And this is the country they want to destroy – with the help of big brother.

    #40647

    tabarnick
    Participant

    Of course the story of aboriginal nations in Canada is extremely complex. But the basic problem remains. You have a relatively small population, fragmented in dozens of nations, scattered in hundreds of villages, of people who are often severely undereducated, living mostly far from any economic activities, sharing a country with a completely different population with a totally different culture and economic development. So of course cohabitation will be a challenge, and of course economic outcomes are going to be radically different.

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