"Let's
make sure that there is certainty during uncertain times in our economy."
President
George W. Bush
In the increasingly costly standoff between Catalonia
and Spain, Catalonia seems to have blinked first. Catalonia’s President
declared independence, and then immediately suspended any steps to its implementation.
Independence war over, we won, now everybody go home.
According to the Catalan’s, Catalonia is now
an independent republic within the Spanish monarchy, awaiting a negotiated separation
with Royal Spain. According to Spain they are all but illegal rebels one half
step away from becoming traitors. Spain says no negotiations, and has the
backing of the USA and the EUSSR. Tiny Catalonia has only the increasingly unpopular
Scottish National Party as a backer. Good luck with that.
For now an uneasy, unstable, stalemate rules,
but for how long? Who wants to invest in a region, where trouble is just a
heartbeat away. How long before it drops
into strikes, civil disobedience, and non payment of taxes? The wobbly Spanish
minority government is already unable to pass its budget. How long before the
drag on Catalonia’s economy and taxes, crashes the economy of Spain? How long
can the EU stand aside and watch Euroland’s 4th largest economy
start to implode? My guess is not very long.
Below, who in the EUSSR needs Brexit when they’ve
got such a big mess in Spain.
Nobody
should pin their hopes on a miracle.
Vladimir
Putin.
October 10, 2017 / 11:13 AM /
Updated an hour ago
Catalonia baulks at formal independence declaration to allow talks
BARCELONA (Reuters) - Catalonia’s leader
balked at making a formal declaration of independence from Spain on Tuesday,
calling for talks with Madrid over the region’s future in a gesture that eased
fears of immediate unrest in the heart of the euro zone.
In a much-anticipated speech to the Catalan parliament, ringed by
thousands of protesters and hundreds of armed police, Carles Puigdemont made
only a symbolic declaration, claiming a mandate to launch secession but
suspending any formal steps to that end.
His remarks disappointed many of his supporters who had gathered
outside, waving Catalan flags in the expectation that he would move a formal
independence motion to the assembly.
But the speech pleased financial markets, boosting the euro on hopes
that his gesture would mark a de-escalation of Spain’s worst political crisis
since an attempted military coup in 1981.
Tensions have been climbing in Catalonia since it went ahead on Oct. 1
with an independence referendum that Madrid had deemed unconstitutional.
Despite a violent police crackdown, Catalan officials say the result was an
overwhelming “yes” vote.
But instead of moving a motion in regional parliament on Tuesday, as
Spanish unionists had feared, Puigdemont and other regional politicians signed
a proclamation of “full sovereignty” for Catalonia. Its legal value was
unclear.
----However, the prospects for political talks still appeared remote on Tuesday despite Puigdemont’s gesture, with Madrid insisting on talks to be held “within the law”, a phrase that is widely interpreted as ruling out independence as an option.
Deputy Prime Minister Soraya Saenz de Santamaria also rejected the
Catalan leader’s proposal for talks to be conducted by an international mediator.
“Neither Mr. Puigdemont nor anybody else can claim ... to impose mediation,”
she said.
----After Puigdemont’s speech, stocks around the world rose as Wall Street eked out record highs ahead of earnings season, while U.S. Treasury prices pared gains.
Some analysts, however, said Puigdemont’s stance would prolong the
uncertainty and risk from the Catalan impasse.
It could also rock his Catalan government, with one far-left party
inside his coalition, the pro-independence CUP, saying he may have missed an
historic opportunity and giving him one month to find a negotiated solution the
CUP doubts will ever come.
More
Spain’s Nuclear Option on Catalonia Is No Quick Fix for Rajoy
By Todd WhiteDeep in the 1978 Constitution, two short paragraphs appear to give Prime Minister Mariano Rajoy the power to push aside the rebel administration and take direct control of the region. But putting Article 155 into action may not be so easy.
Here’s what’s involved:
- For the government to force one of its 17 “self-governing” regions to obey laws, it must see the disobedience as “seriously prejudicial to the general interest of Spain.”
- With Catalonia threatening to secede, Rajoy’s probably safe on that score, but it gets more complicated
- If Rajoy asks the Senate to hold an emergency session to invoke Article 155 powers, there will be no immediate or even next-day suspension of the Catalan administration, according to legal experts.
- First a formal complaint must be made to the regional president -- in this case Carles Puigdemont
- If his response is unsatisfactory, then the Senate must approve measures, after debate and other legislative formalities
- That means a delay of at least two weeks before any crackdown ensues, even under the speediest of procedures, constitutional scholar Jorge de Esteban Alonso wrote in a law blog in September.
- “155 is for situations like this -- when institutions stop functioning,” said Ignacio Gomá Lanzón, a lawyer and chairman of the Hay Derecho, a legal advocacy foundation in Madrid. But its mechanics haven’t been set out in legislation, and that will slow down its deployment.
October 9, 2017 / 10:04 PM / a day ago
The Basque: Spain's effective but expensive antidote to secession
BILBAO,
Spain (Reuters) - As Spain and Catalonia head towards a constitutional
collision over the region’s claim to independence, lawmakers on both sides of
the crisis are pointing to a way out: north, to Basque Country.
Among the verdant mountains of Basque Country, which borders France, a
once-violent campaign for independence has petered out, with generous fiscal
autonomy from Madrid helping to keep popular agitation for independence in
check.
“We don’t have that economic resentment,” Aitor Esteban, organizer for
the Basque National Party in Spain’s parliament, told Reuters in an interview
at party headquarters in Bilbao.
“People don’t feel that need to act upon a grievance about money; that
makes a big difference.”
The Catalan government is not calling for a Basque-style deal, insisting
instead on independence after declaring overwhelming support for secession in
an Oct. 1 referendum banned by Madrid.
But the most moderate lawmakers in the region’s ruling coalition
privately say they could drop independence claims if they were given the tax
autonomy that Basque Country enjoys.
In
Madrid, some socialists have suggested it could serve as a model for a
compromise that would defuse Spain’s biggest political crisis since a failed
coup in 1981, although the cost to the central government would be significant.
----Basque’s fiscal autonomy is among the most generous of any region in Europe, dating back to the 19th century and enshrined in Spain’s 1978 constitution.
If it were to be extended to Catalonia, an economically more powerful
region accounting for a fifth of national production, the Spanish state would
lose about 16 billion euros, according to a 2014 study by research house CSIC.
That would equal about 13 percent of next year’s budget and affect
Spain’s deficit and borrowing costs.
For that reason, Spanish Prime Minister Mariano Rajoy has ruled out such
generous treatment for Catalonia.
More
In the global markets
though, Catalonia’s blink meant bubble on like it’s 1987 and 2007 all rolled
into one. Roll on Friday the 13th and the arrival of crash week.
October 11, 2017 / 1:52 AM /
Updated an hour ago
Asian shares hit decade highs, Catalan fears ease
SYDNEY (Reuters) - Asian shares jumped to the highest in a
decade on Wednesday as Wall Street scaled all-time highs, while the dollar loitered
around two-week lows on worries President Donald Trump’s tax plan could stall.
The euro EUR= traded around a 10-day peak after Catalonia's leader suspended plans to leave Spain, easing near-term concerns about euro zone stability.
The MSCI’s broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS climbed 0.5 percent to 546.38, a level not seen since
December 2007.
Australian stocks jumped to 1-1/2 month highs while South
Korea's KOSPI .KS11
added 0.6 percent to within a whisker of record peaks.
Japan's Nikkei .N225
edged closer to a 21-month top, even as scandal-hit Kobe Steel (5406.T)
extended losses.
Sentiment was boosted after the International Monetary Fund
upgraded its global economic growth forecast for 2017 and 2018, driven by a
pickup in trade, investment, and consumer confidence.
“A risk-on mood has set in and money is flowing out of bond funds into equities funds,” said Hugh Dive, chief investment officer at Atlas Funds Management.
“One of the biggest drivers of global equities is the United States and some of the macro data coming out from there has been quite positive. There is also this view that China is travelling much better than many people had expected.”
The three major Wall Street indices set record highs again,
with Dow .DJI
up 0.3 percent, the S&P 500 .SPX adding
0.2 percent and the Nasdaq .IXIC
inching 0.1 percent higher.
In currency markets, the dollar held around a two-week
trough as U.S. President Donald Trump’s escalating war of words with Senator
Bob Corker raised concerns about the administration’s ability to pass promised
reforms.
More
"We
finished the year, and we reported that we had $17 billion of cash sitting at
the bank's parent company as a liquidity cushion. As the year has gone on, that
liquidity cushion has been virtually unchanged."
Bear
Stearns CEO Alan Schwartz. March 12, 2008. Bust March 17, 2008
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally doubled over.
Below, more on the growing corporate scandal in Japan. A scandal with
much further to go, think I.
Japan-Wide Scandal Erupts Over Steel Company's Falsified Data
By Masumi Suga and Chikako Mogi
October 10, 2017, 1:19 AM GMT+1 October 10, 2017, 7:31 AM
GMT+1
Kobe Steel Ltd. unleashed an industrial scandal
that reverberated across Asia’s second-largest economy after saying its staff
falsified data related to strength and durability of some aluminum and copper
products used in aircraft, cars and maybe even a space rocket.The company’s stock ended 22 percent lower in Tokyo as customers including Toyota Motor Corp., Honda Motor Co. and Subaru Corp. said they had used materials from Kobe Steel that were subject to falsification. Boeing Co., which gets some parts from Subaru, said there’s nothing to date that raises any safety concerns. Rival aluminum makers gained.
Kobe Steel’s admission raises fresh concern about the
integrity of Japanese manufacturers, and follows Takata Corp. misleading
automakers about the safety of its air bags, and last week’s recall by Nissan
Motor Co. of cars after regulators discovered unauthorized inspectors approved
vehicle quality. Kobe Steel said on Sunday the products were delivered to more
than 200 companies but didn’t disclose customer names, with the
falsification intended to make the metals look as if they met client quality
standards. Chief Executive Officer Hiroya Kawasaki is now leading a committee
to probe quality issues.
The fabrication of figures was found at all four of Kobe Steel’s local
aluminum plants in conduct that was systematic, and for some items the practice
dated back some 10 years ago, Executive Vice President Naoto Umehara said on
Sunday. The comments were confirmed by a company spokesman.For a Gadfly commentary on the fallout, click here
Toyota said it has found Kobe Steel materials, for which the supplier falsified data, in hoods, doors and peripheral areas. “We are rapidly working to identify which vehicle models might be subject to this situation and what components were used,” Toyota spokesman Takashi Ogawa said. “We recognize that this breach of compliance principles on the part of a supplier is a grave issue.”
---- “The incident is serious,” said Takeshi Irisawa, an analyst at Tachibana Securities Co. “At the moment, the impact is unclear but if this leads to recalls, the cost would be huge. There’s a possibility that the company would have to shoulder the cost of a recall in addition to the cost for replacement.”
Subaru has produced training planes for Japan Self-Defense Forces and wings for Boeing jets such as the Boeing Dreamliner, according to a spokesman, who added the company was checking which planes and parts used affected aluminum. “Nothing in our review to date leads us to conclude that this issue presents a safety concern, and we will continue to work diligently with our suppliers to complete our investigation,” Boeing said in a separate statement.
---- This latest scandal threatens to further undermine confidence in the quality of Japanese manufacturing. Shinko Wire Co., a Kobe Steel affiliate, in June 2016 said a unit had misstated data on tensile strength of stainless steel wires for springs and that it had supplied customers with alloy that failed to meet Japanese industrial standards.
In other recent Japanese product-related cases, Takata pleaded guilty in the U.S. in February to one
count of wire fraud for misleading automakers about the safety of its exploding air bags. Toyo Tire & Rubber Co. officials were referred to prosecutors in March following the company’s 2015 admission that it had falsified data on rubber for earthquake-proofing buildings. Nissan last week recalled more than 1 million cars in Japan.
Scandal Wipes a Third of Kobe Steel's Value in Two Days
By Eric LamLeading customers from Shinsho Corp. to Mitsubishi Corp. have been sucked into Kobe’s false product data debacle, triggering outsized moves in debt, credit and equity securities associated with Japan’s third-largest steelmaker by output and sales.
More than a third has been wiped from Kobe Steel’s stock-market value, in a record two-day slide.
Kobe Steel disclosed Sunday that its staff had falsified data about the strength and durability of some aluminum and copper products, and said Wednesday that iron ore powder data may also be suspect.
While JPMorgan securities Japan Co. estimates the cost of replacing the parts could be as much as 15 billion yen ($133 million), the reputational cost and potential lawsuits stemming from the disclosures could cost Kobe Steel far more.
Read how the once revered Japan Inc. is seeing its image get shredded by scandals.
Bond yield premiums at the steelmaker have also jumped to records, with the spread on notes due November 2021 jumping 148 basis points to about 202.5 on Tuesday, according to data compiled by Bloomberg. The cost of buying protection against a default for Kobe has also surged, jumping more than 180 basis points to a 19-month high for five-year swaps, the data show.
More
Why did I take up stealing? To
live better, to own things I couldn't afford, to acquire this good taste that
you now enjoy and which I should be very reluctant to give up.Cary Grant. To Catch A Thief.
Technology Update.
With events happening
fast in the development of solar power and graphene, I’ve added this section.
Updates as they get reported. Is converting sunlight to usable cheap AC or DC
energy mankind’s future from the 21st century onwards?
Today, well maybe,
but probably not.
New Amazon Drones Will Charge Your Car While You Drive
The U.S. Patent Office recently granted Amazon a patent for roving drones that can latch onto electric vehicles and extend their range with an infusion of energy.The online powerhouse already sells home charging stations, Tesla touch-up paint and biographies of Elon Musk. But this patent makes its link to the electric-vehicle market much more tangible. And it has the potential to solve several persistent problems in the electric vehicle market: charging infrastructure and range anxiety.
Charging infrastructure has been growing in dense urban areas, particularly in places like California, but vast swaths of the country still have limited resources. A mobile, mid-drive recharge offers a tantalizingly easy way around the quandary of searching for a charger while road tripping through remote stretches of landscape.
Even in city driving, it's possible to worry about getting stuck in traffic with a battery running low. Not so if a swarm of helpful battery bots can zip out of the sky and top you off.
A 2016 GTM Research report notes that electric-vehicle charging has already experienced tumult with company bankruptcies and cost barriers to implementation. The report lists companies such as Tesla, Siemens and General Electric as major players in the charging game.
Since that report was released, oil and gas major Royal Dutch Shell announced it will invest in smart charging stations, and cities and states have published a copious number of reports on how to improve charging infrastructure to encourage electric-vehicle use.
But few, if any, of these corporations and governments have direct and daily interaction with the public on the level of Amazon, a company which quite literally touches all aspects of many people’s lives (especially the wealthy, young urbanites who are more likely to have the funds and interest necessary to be early adopters of electric vehicles). That penetration is part of Amazon’s strategy -- and its success.
“We’ve had three big ideas at Amazon that we’ve stuck with,” founder Jeff Bezos has said. “They’re the reason we’re successful: Put the customer first. Invent. And be patient.”
The patent describes a process where Amazon’s drones can communicate with electric vehicles out on the road through servers that monitor energy usage and need.
Servers relay energy requests to drones, which would then be dispatched to meet vehicles on the road. The drones would authenticate the connection, attach to a vehicle connector on the roof or door and start fueling -- even if the car is in motion.
More
The monthly Coppock Indicators finished September
DJIA: 22,405 +223 Up. NASDAQ: 6,496 +274 Up. SP500: 2,519 +179 Up.
No comments:
Post a Comment