Tuesday, 20 September 2011

IMF cuts growth forecast for UK for 2011 and 2012

 

The International Monetary Fund has cut its growth forecasts for the UK, in a report warning that the global economy is in a "dangerous new phase". UK gross domestic product is predicted to grow 1.1% in 2011, down from the 1.5% forecast in the IMF's previous World Economic Outlook report in June. The growth forecast for 2012 has been slashed from 2.3% to 1.6%. Foreign Secretary William Hague said the UK had the "discipline and determination" to tackle its deficit. But shadow chancellor Ed Balls called them "deeply concerning forecasts for both the UK and world economy". Independent economists are currently forecasting average UK growth of 1.3% in 2011, slower than the IMF, and 2% in 2012, ahead of the IMF figure. The IMF's UK forecast for 2011 falls behind projections for Germany, France, the US and Canada. Germany is forecast to grow 2.7% in 2011 while France is expected to show 1.7% growth. The US should advance 1.5% and Canada 2.1%. However, UK growth in 2012 should surpass both Germany and France, whose forecasts have been cut to 1.3% and 1.4% respectively. A spokesman for the Treasury said the Government remains committed to its deficit cutting plan. He said: "It is welcome that the IMF have forecast that the UK will grow more strongly than Germany, France and the euro-zone next year. "But it is clear that the UK is not immune to what is going on in our biggest export markets, with every major economy seeing lower forecasts for growth this year and next. "The Government remains committed to implementing the deficit reduction plan which has delivered stability, a policy stance that Christine Lagarde described as 'appropriate' earlier this month." Mrs Lagarde, head of the IMF, said the UK's budget deficit stance remained "appropriate" but "the heightened risk" meant a need for a "heightened readiness to respond".

Debt Crisis Infects Companies via Bank Loan Costs

 

Banks in Spain and Italy are curbing loans and charging customers more as aftershocks from the sovereign debt crisis drive their own borrowing cost higher. “They can’t lend what they don’t have, I suppose,” said Francesc Elias, the owner of Bomba Elias, a pumps and filters maker near Barcelona, which shelved a 100,000-euro ($144,000) plan to open a Bahrain office when it couldn’t get an affordable bank loan. “The banks are very clever about finding new ways to charge us more.” Spanish and Italian government bond yields surged to euro- era records this quarter as Greece struggled to avoid default, driving the cost of insuring against nonpayment by the region’s banks to a record and making it harder for them to sell bonds. Spain pays 5.35 percent for 10-year money, up from an average of 4.07 percent in the first half of 2010, while Italy pays 5.65 percent compared with a 4.05 percent average last year. As a result, banks such as Banco Santander SA, Spain’s biggest lender, are passing higher funding costs on to their customers. Santander’s return on Spanish loans rose to 3.63 percent in June from 3.37 percent in December, as the yield it pays on deposits fell to 1.32 percent from 1.54 percent. UniCredit SpA, Italy’s biggest lender, said on Aug. 3 it’s being more selective about who it lends to and levying higher rates. One out of three companies asking for credit in the second quarter period didn’t get it or obtained less than they asked for, according to Confcommercio, an Italian retailers’ lobby group. ‘Increasingly Stringent’ “The cost of financing our current activities has increased significantly,” said Riccardo Illy, chairman of Italian coffee maker Gruppo Illy SpA. “We don’t have any problems accessing credit because we’re large enough, but we know many businesses that are having trouble because banks’ requirements have become increasingly stringent.” Spanish banks including Santander and Bankia SA are shrinking their loan books after being pummeled by a collapse in credit demand for real-estate and surging loan defaults. Santander’s Spanish lending shrank an annual 7 percent through June, mirroring a trend in the Bank of Spain’s data that show a 1.9 percent annual drop in lending to companies and individuals. Lending at Bankia, the third-biggest lender formed from a merger of seven savings banks, was down 2.3 percent from December. The average interest rate on new company loans of as much as 1 million euros rose to 4.70 percent in July from 4.57 percent in June and 3.88 percent in December, according to the Bank of Spain. Companies took out 15.9 billion euros of those loans in July, down from 18.7 billion euros in the same month a year ago and 39.2 billion euros in July 2007, according to the central bank. ‘The Bottom Line’ “In our case, it’s not so much the issue of access to credit that’s the problem, it’s the fact that it costs more,” said Luis Zapatero, chairman of Bodegas Riojanas, a Spanish winemaker, which needs to finance putting wine aside to create reserve vintages that may not go on sale until several years after bottling. “Our financial costs have increased 15 percent and that goes straight to the bottom line.” Banks face a dilemma when trying to pass on increased funding costs in full because they risk driving more borrowers into default, said Barclays Capital’s Pascual. Bad loans in the Spanish banking system are near 7 percent of total lending, the highest since 1995. Increased Caution “Banks are more cautious in giving long-term loans because it has become more difficult to transfer increasing funding costs to customers,” said Giovanni Bossi, chief executive officer of Banca Ifis SpA, an Italian bank specializing in short-term loans to companies. As lending slides in Spain and banks struggle to finance themselves, the outlook for growth is worsening, said Antonio Ramirez, an analyst at Keefe Bruyette & Woods in London. Prime Minister Jose Luis Rodriguez Zapatero said Sept. 14 that Spain might miss its 1.3 percent growth target this year because of the “situation of financial tension and economic uncertainty, mainly because of Greece.” Banks, meantime, are struggling to sell bonds. The last benchmark-sized issue of 1 billion euros or more of debt by a Spanish bank was a sale of public-sector covered bonds by Santander in June. UniCredit paid a record spread for Italian covered bonds when it raised 1 billion euros from a sale of 10- year notes that yielded 215 basis points more than the benchmark mid-swap rate. ‘Negative Feedback Loop’ “It’s the negative feedback loop between what’s happening to the sovereign and the effect on banks and the economy,” said Antonio Garcia Pascual, chief southern European economist at Barclays Capital in London. “To a large extent, the problems facing Spanish lenders also apply to Italy.” As financing costs rise in Italy, analysts have started revising down their growth estimates for that country. Nomura International Plc economists revised their Italian gross domestic product growth estimate for 2012 last month to 0.5 percent from 0.8 percent previously. “The increased financial costs will become more evident in the dynamics of the economy,” said Giada Giani, an economist at Citigroup Inc. in London. “I definitely think that the deterioration of financial conditions is a key factor in the macro-economic picture.” A survey by Spain’s national statistics institute published in May showed that one in every four companies that sought loans in 2010 failed in the attempt, compared with 10 percent in 2007. Half of the companies surveyed said they’d been able to line up the credit needed, compared with 80 percent in 2007, according to the survey. Meanwhile, Spanish banks are also demanding higher fees from customers, Bank of Spain data show. The average six-month charge for a retail customer current account jumped 15 percent to 25.80 euros at the end of August from 22.36 euros in December, according to the regulator. “There’s a double effect because commissions have also increased dramatically,” said Elias, the owner of the pumps and filter maker, who has cut his workforce to 12 from 20 in the past year. “It affects any kind of investment plan.”

Monday, 19 September 2011

Marbella Club Hotel, Golf Resort & Spa: Marbella, Spain hotel:

 

Located on the Southern Spanish Costa del Sol, in the heart of the 'Golden Mile' only 5 minutes to Old Town Marbella and Puerto Banús, with 320 days of sunshine and a mild year round average temperature of 21ºC). Open year round, the renowned Marbella Club Hotel, was once the private residence of Prince Alfonso von Hohenlohe. The 121 luxury bedrooms and suites, spread over the beach front resort, harmonize with 14 Andalusian-Style villas throughout 42,000 square meters (452,083 sq. ft.) of lush subtropical gardens. Each guest room is decorated with the finest fabrics and Mediterranean interior design, reflecting the surrounding elements and has furnished balcony / terrace and spacious luxurious bathrooms with separate shower and bath. The 14 charming villas are in the unmistakable style of the Hotel, faithful replicas of traditional Andalucían architecture, blending harmoniously with their surroundings, and are ideal for families and guests seeking to enjoy more space and privacy. The 2, 3 or 5 bedroom villas have their own private garden and heated pool, providing guests with both comfort and privacy during their stay. Both of the 2 outdoor heated swimming pools, one with seawater invite you to relax in the surrounding gardens or to enjoy the views of the Mediterranean through the palm trees of the famous beach club.

Housing Market Woes Even Hit Celebs

 

Even celebrities are having a hard time selling their mega-mansions. More on DIS Fan Cam: The Next Sports Cash Machine?Jay Rasulo, Senior Executive Vice President And Chief Financial Officer, The Walt Disney Company, To Speak At The Goldman Sachs 20th Annual Communacopia ConferenceBond Funds See Huge Spike in Inflows Market Activity The Walt Disney Co| DIS Mommy-to-be Hillary Duff has put her first mansion that she purchased while starring in Disney's Lizzie McGuire up for sale with an asking price of $6.25 million. But according to The Real Estalker, Duff also attempted to sell the estate last year, listing for $7 million last time around. Real estate records reveal Duff bought the 9,277 square-foot house in Toluca Lake, Calif., in March 2004 for $3.5 million. Mark Wahlberg, a.k.a. Marky Mark, also recently re-listed his Beverly Hills estate with a $2 million price cut. Wahlberg originally listed the property in 2008 for $15.9 million. The 1.41-acre home is now listed for $13.9 million. The executive producer of Entourage purchased the mansion in 2001 for just $5 million, later remodeling it. Earlier in the summer, Christina Aguilera reduced the price on her home in the Hollywood Hills to $5.5 million from $8 million, while Jodi Foster's Beverly Hills mansion was brought down to $8.9 million from $10 million. The housing market continues to wobble with few consumers taking advantage of record-low mortgage rates. Sales of newly built homes are expected to be at their worst levels for decades this year, while sales of previously occupied homes are on pace for their poorest showing in nearly 15 years

Spain finance chief admits odd quirk in wealth tax

 

One aspect of a plan to restore wealth tax in Spain makes no sense but there's nothing the government can do about it, the finance minister said Saturday. Elena Salgado spoke from Poland where she was attending a meeting of euro zone counterparts. The tax stems from the central, Socialist government but is collected by regional administrations. It was suspended in 2008 to stimulate growth as the global economic crisis started to bite in Spain. But the Madrid government has kept compensating regional governments for the lost revenue. Now, regions stand to get the money twice: once from high-earning taxpayers under a decree passed Friday and again from the central government because the compensation must continue under a separate law that has a higher status than a decree. Salgado said "this does not seem reasonable" but there's no way around it. "With a decree, there is nothing you can do to avoid it," she said. Her comments were the latest in a sea of confusing government statements about the wealth tax, which is levy on a person's net worth: assets minus debts. The flip-flops concerned the wealth level at which it will kick in and how much revenue it will raise. In the end, if passed by Parliament next week, the levy will apply to taxpayers' net worth above euro700,000 ($963,000), or an estimated 160,000 people, and raise euro2 billion in revenue. It is temporary, and will be in effect only in 2011 and 2012. The government says the tax is aimed at getting richer people to chip in more as Spain struggles with a 21 percent jobless rate, anemic growth and a high deficit. But it has been criticized by the conservative opposition as a populist nod to leftist voters angry over deficit-cutting austerity measures as Nov. 20 general elections approach. The ruling Socialists are projected to lose badly. Salgado's remarks seemed to contradict some made just Friday by government spokesman Jose Blanco, who said no region would get the wealth tax money twice. Salgado said Blanco really meant the same thing she did: that it seems unreasonable for regions to get the money doubly.

Spain to cover 20bn euros in potential bank losses

 

The Bank of Spain has promised to cover up to 20 billion euros ($27 billion) in losses at Caja Mediterraneo as it seeks to offload the troubled savings bank, a newspaper said Monday. The Bank of Spain took control of the bank in July and is now trying to sell it off. According to the daily El Mundo, the central bank let investors know it would cover up to 20 billion euros of losses, the estimated amount of property-related assets at risk in Caja Mediterraneo (CAM), if necessary. If confirmed, the central bank intervention would be "the costliest for the public treasury in Spanish financial sector history," the newspaper said, without identifying its source. The price tag could unnerve financial markets -- it is equal to a government estimate of the maximum cost of recapitalising Spain's entire banking sector. Contacted by AFP, Bank of Spain officials were unable to respond immediately to the report. The Bank of Spain injected 2.8 billion euros and opened a three-billion-euro line of credit for the CAM when it took control of the institution in July. But in early September CAM revealed a first-half loss of 1.136 billion euros and a high 19-percent ratio of bad loans, mostly property-related credits whose recovery was doubtful. The average bad loan ratio for the Spanish banking sector was 6.416 percent in June. According to El Mundo, the Bank of Spain is trying to complete the sale before general elections set for November 20. It said rival banks Santander, BBVA and CaixaBank, as well as a union of three Basque banks, were among candidates to buy the CAM, with Santander the favourite.

Saturday, 17 September 2011

Central control of Europe's borders proposed

 

The European Union's executive branch proposed Friday that national borders in Europe's visa-free travel zone be controlled by officials in Brussels, the EU capital, rather than by individual governments -- a plan already opposed by Germany, France and Spain. The proposal by the European Commission follows a call for stronger economic governance within the area that uses the euro currency, and reflects a push toward more centralized decision-making to protect the European Union's two proudest achievements, the free movement of both people and capital. It is unclear at this point whether either of those achievements will survive, said Paul de Grauwe, an economics professor and EU expert at the Catholic University of Leuven, in Belgium. "I would say we are at a road, and suddenly there is a bifurcation and we have to make choice," de Grauwe said. "One road is more integration to save the project, to save the Schengen zone and the monetary union. But there is a lot of opposition. It's also possible that we take the other road, no further integration, and then we risk the collapse of these two experiments." In June, EU leaders agreed to set up new rules underpinning the principle of free travel throughout much of the continent after Italy, Denmark and France all took action to roll back visa-free travel. Most of the details of the proposed centralized governance of the 25-country Schengen zone -- named for the town in Luxembourg where the visa-free treaty was negotiated in 1985 -- had already emerged. National governments would retain the right to re-institute border checks in unforeseen emergencies that threaten public order or internal security, but only for five days. Beyond that, approval of the European Commission and a committee of technical experts from the Schengen countries would be needed. And as a last resort, if a country failed persistently to adequately police the Schengen zone's external borders despite help from EU headquarters, the commission with the consent of the committee could impose checks along that country's borders with other Schengen countries. "It is a common European project," EU Home Affairs Commissioner Cecilia Malmstrom said of the visa-free zone. "We need to work jointly on joint projects to defend them." But there has long been a push and pull between officials who believe the European project can only work with greater integration and those opposed to the weakening of national sovereignty. Even before the Schengen proposal was unveiled Friday, it met with opposition from Germany, France and Spain, who said border control, public order and internal security were matters for national governments, not EU headquarters. Given that opposition, it is unclear whether the proposal in its current form will take effect. Meanwhile, plans to admit two more EU countries -- Romania and Bulgaria -- to the Schengen visa-free zone hit a snag Friday when Dutch Immigration Minister Gerd Leers said his country plans to block their entry. Approval of new Schengen countries must be unanimous. "The trust isn't there," said Leers' spokeswoman, Elaine de Boer. She said Leers "wants to see more work in the fight against corruption" in both countries. Bulgaria's President Georgi Parvanov insisted his country was being unfairly singled out despite meeting the criteria set out by the 17-member bloc for joining the visa-free zone. "I don't think it is right to use any other criteria in solving this matter," he said at a meeting with foreign ambassadors in the capital Sofia.

Handling of Saudi prince's Spain court case challenged

 

Lawyers for a woman who alleges she was sexually assaulted by Prince Alwaleed bin Talal of Saudi Arabia say the case has not been properly handled by Spain's criminal justice system. The woman, known only as "Soraya", says she was assaulted on a yacht moored off the island of Ibiza in 2008. A spokeswoman for the prince denied the allegation and said he had not been to Ibiza for more than a decade. The case was shelved by an island court but has now been reopened. This followed a successful appeal by Soraya's lawyers. The judge is preparing a second official request to the Saudi authorities for assistance in formally questioning the prince. The nephew of Saudi King Abdullah, Prince Alwaleed bin Talal is a multi-billionaire with major investments in both Citigroup and NewsCorp. 'Something in my drink' "In our opinion, the Court of Instruction No 3 in Ibiza and the police did not follow full procedure in cases of alleged sexual abuse," the lawyers from Madrid-based firm Turiel and Beloqui told the BBC. "There are things that should have been investigated that were not - like questioning staff on the yacht and the guests, an analysis of the victim's clothes and so on," the lawyers wrote, describing the fact these steps were not taken as "very unusual". The claim that the case was not being pursued with proper rigour was dismissed by the Ibiza court in 2010, saying that the identity of the accused in no way affected its decision to drop the case that year. The court ruling cites insufficient evidence to proceed. Continue reading the main story “ Start Quote My daughter was in a terrible state, [...] scared to death, crying, awful” Mother of 'Soraya' Soraya, a Spanish-German model, was 20 at the time of the alleged attack on 13 August 2008 on board the 117-metre luxury yacht Turama. She told police she had begun to feel nauseous in the VIP zone of a local night club, where she believes something was slipped into her drink. She had been taken there by a man claiming to be a chauffeur for "an Arab prince" who was visiting the island. According to court documents seen by the BBC, Soraya sent the chauffeur an SMS text message at 05:12, saying: "I haven't drunk much but I think there was something in my drink." The model says she came round some hours later on board the Turama to find a man on top of her. She later identified the man as Prince Alwaleed bin Talal using images taken from YouTube. Forensic reports from a medical examination the following day revealed traces of a sedative and semen, but no physical injuries. A woman identifying herself as the mother of Soraya told the BBC her daughter had called on the morning of the alleged attack asking her to come and collect her from the island. "My daughter was in a terrible state, [...] scared to death, crying, awful," the woman said, responding to questions sent by email. "The Spanish justice system has treated this case very badly. In my view they did not want to get too involved because of who the accused was." A 2010 prosecutor's report says three men who were questioned by police during the investigation were unable to corroborate the model's version of events "in any way". The Saudi foreign ministry rejected an initial request from the Ibizan court to investigate, citing "an inability to identify the accused and a lack of solid evidence". This week, a spokeswoman for Prince Alwaleed's Kingdom Holding Company said the prince had never been informed of the 2008 court case, or that it was eventually shelved. In a statement, she also said the billionaire's travel records confirm he was with dozens of friends and family at the time of the alleged attack, nowhere near Ibiza. "There have been many examples of people impersonating Prince Alwaleed over the internet and elsewhere for their own purposes," Heba Fatani said in a statement. She called the allegations against him "salacious" and "completely and utterly false". The Audencia Provincial court in Mallorca - which has jurisdiction over Ibiza - has ordered the case to be reopened in order to ensure the prince can be questioned in accordance with Spanish law. Soraya's lawyers have urged him to provide a DNA sample to rule himself out of the inquiry.

Spain raises taxes on the rich

 

Spain today became the latest European country to hike taxes on the wealthy, with a new asset-based tax targeting the country's richest people. Spain's socialist government hopes that the new wealth tax will raise up to €1bn in a country where growth is grinding to a halt and this year's 6% deficit target looks increasingly tough to meet. The move represents a U-turn for prime minister José Luis Rodríguez Zapatero, who abolished a similar wealth tax in 2008 — just before the country plunged towards recession. "The economic crisis makes it necessary to bring this tax back, applying principles of fairness so that those with bigger assets can be taxed and so those who have greater wealth can contribute more to getting the country out of the crisis," a finance ministry statement said. Spaniards with €700,000 of assets in real estate – excluding their main home – as well as in stocks and bank deposit will have to pay the new tax. "It excludes the middle classes, who were the ones who had been largely affected by it when it was eliminated in 2008," the statement said. "We estimate the number of people who will contribute at around 160,000, with annual payments of about €1.08bn if it is applied evenly across Spain," it added. The wealth tax will go to Spain's cash-strapped regional governments, though some of them are opposed to it. Only one of the eleven regions currently governed by the right-wing opposition People's Party (PP) has so far indicated that it will apply the tax. It remained unclear how many others, including the wealthy Madrid region, would join the PP-administered region of Extremadura. But with fierce austerity measures in place, PP regional governments will come under intense pressure to use the tax. "In moments of hardship it is fair that those who have more should give more, just as some of the wealthiest people in Germany and France have offered to do, especially as they are less affected by measures that have been applied to pensions, salaries, lay-offs and income tax or VAT hikes," said José María Mollinedo, head of the tax inspectors' union. Spain's wealthy largely avoid income tax, with only some 7,000 people declaring annual taxable income above €600,000. Emilio Botín, head of the Santander banking group and Spain's tenth wealthiest individual, said that he disagreed with the move. "I think it's bad," he told journalists

Polo Experience at Tres Rosas Polo

 

Tres Rosas Polo offered the chance to try some horse riding as well as the opportunity to play a very popular sport called Polo. Polo is a team sport played on horseback and the players score by driving a small white plastic or wooden ball into the opposing team's goal using a long-handled mallet. The traditional sport of polo is played at speed on a large grass field up to 300 yards in length, and each polo team consists of four riders and their mounts.    Personally, I must admit I was a bit intimidated by the whole thing, since my only(and very brief) experience with horses was more than 10 years ago. Getting up the horse and heading to the field already raised a fair amount of adrenaline in me, but the peak was reached once my horse started to gallop. Let's just say it isn't as easy at it looks and for me the fear of falling was the biggest!    Thankfully my horse, Todo, let my first experience be totally positive, even though I was not sure at all what I was doing. What they told me was that the horse can sense if the rider is insecure and totally in charge. That is the reason also why she didn't obey 100%. Nevertheless, riding the horse with the mallet in the right and leading the horse with my left hand made me feel like a polo player, even if it was for only 15 minutes!    I definitely suggest this type of sport to anybody who loves to try something different and Tres Rosas Polo club is the right place to take up this interesting hobby that is played professionally in 16 countries!

Another shipment of cocaine inside plastic bananas seized in Spain

 

National Police have seized almost half a ton of cocaine which had been smuggled into Spain hidden inside plastic bananas transported in a normal cargo of the fruit. It’s a method which has been used by drug smugglers before, leading to four arrests after 162 kilos of cocaine were seized at Algeciras Port this January. The Interior Ministry said in a press release on Thursday that the drugs were imported from Ecuador in containers of bananas by an import company which was set up for that purpose in San Roque, Cádiz province. The group is understood to have sent over a number of containers of real fruit from Ecuador before sending the cargo of cocaine. The gang’s rented warehouse in San Roque was kept under surveillance and raided after three containers were transported there at the end of June, where plastic bananas containing 448 kilos of cocaine were discovered amongst the fruit. Three people were later arrested in Roldán, Murcia, and in Pozuelo de Alarcón, Madrid, followed by a fourth suspect who was taken into custody in August in Alicante.

11 of the 54 prisoners in Menorca jail are British

 

11 of the 54 prisoners being held in prison on Menorca are British, according to the prison authorities, who says their presence on the island is dependent on the air connections to the UK, which allows family visits to the inmates. The same sources, quoted by Menorca.info, say that none of the Britons have a ‘conflictive’ profile. The jail on the Carretera de Sant Lluís also currently holds 23 prisoners who are of Menorcan origin or who have links to the island. Another 20 are being held ahead of their appearance in court.

Super Heavy: Mick Jagger's motley crew

 

What can the Rolling Stones, Eurythmics and the blockbuster Slumdog Millionaire possibly have in common? More than you think -- at least that's the bet behind Super Heavy, a five-strong supergroup fronted by Mick Jagger whose new album comes out Monday. Five stars from the worlds of rock, soul, pop, reggae and world music -- Jagger, Eurythmics' Dave Stewart, soulwoman Joss Stone, Bob Marley's youngest son Damian and AR Rahman who scored the "Slumdog" soundtrack -- have brought their eclectic styles together for the occasion. The motley make-up of Jagger's new supergroup, the term used when musicians team up on the model of Cream in the 1960s or Damon Albarn's Gorillaz, has raised some eyebrows in music circles. But Jagger insists the resulting album -- titled simply Super Heavy -- is "not all weird". Super Heavy was the brainchild of Dave Stewart, who said he was inspired by the mish mash of sounds he heard wafting through the window of his home above Saint Ann's Bay in Jamaica. "It's kind of the jungle, and sometimes I'd hear three sound systems all playing different things. I always love that, along with Indian orchestras," Stewart told Rolling Stone magazine earlier this year. "I said to Mick, ?How could we make a fusion?'" A few phone calls later and plans for the troupe -- who together claim 11 Grammy Awards -- were in the works, with a first jam session held in Los Angeles six months on, in early 2010. "We didn't know what the hell we were doing," said the Eurythmics founder and co-writer of such 1980s hits as "Sweet Dreams" and "Talking to an Angel". "We were just jamming and making a noise. It was like when a band first starts up in your garage. We might have a 22 minute jam, and it would become a six minute song." Jagger -- who plays the guitar and harmonica as well as singing on the album -- has warned it is "a different kind of record than what people would expect." "It's not all weird and strange though," he told Rolling Stone of the result, a concentrate of musical styles drawn from around the planet. The rhythms and vocals of Damian Marley, who has worked with some of the top names in US hip-hop, leave a strong mark, along with AR Rahman's Bollywood-tinged melodies, some of them sung in Urdu. Joss Stone's deep voice adds a touch of glamour and emotion, while Mick's own performance is Jagger to the hilt. The first single off the album, "Miracle Worker," went on sale online on July 7 and the AZ record label, part of the Universal music group, releases the full album worldwide on Monday. The idea of a supergroup stems back to the 1960s when Cream brought together Eric Clapton of the Yardbirds, Ginger Baker and Jack Bruce of the Graham Bond Organisation in 1966 -- becoming a rock monument in its own right. Two years on, David Crosby of The Byrds, Buffalo Springfield's Stephen Stills and Graham Nash of The Hollies split from their bands and reformed as Crosby, Stills and Nash, producing its now-classic vocal harmonies and folk guitar, sometimes with Neil Young. Less of a hit despite an A-list cast, the Traveling Wilburys was set up in 1988 by Bob Dylan, George Harrison, US rockers Roy Orbison and Tom Petty, and Jeff Lynne of the Electric Light Orchestra. The supergroup trend has resurfaced in recent years, spurred in part by the globe-trotting tastes of Blur frontman Damon Albarn, the creative mind behind both the Gorillaz music project and the 2007 supergroup album "The Good the bad and the Queen." Jack White of The White Stripes also helped found two supergroups in the past decade, The Raconteurs and The Dead Weather. And in 2009, Them Crooked Vultures brought together rock legend Dave Grohl of Nirvana and the Foo Fighters, with Josh Homme of Queens of the Stone Age and the multi-instrumentalist John Paul Jones, of Led Zeppelin fame.

Friday, 16 September 2011

Saudi Arabia: Pretty Maids From Morocco Seen as Threat

 

Back in early September, the recruitment committee of the Council of Saudi Chambers of Commerce and Industry announced that recruitment companies would be established and will be licensed to bring in housemaids from Morocco, East Asia and South Africa. The move has caused outrage in unusual places. The reason for this recruitment move, according to a Saudi chamber official, was that they were turning to Morocco and other countries to get its domestic workers following a dispute with the Philippines and Indonesia, the largest suppliers of housemaids to the Gulf countries. The dispute has centered on pay and conditions, but Indonesia had earlier this year also criticized the Saudi government for beheading an Indonesian maid. Of the 1.2 million Indonesians working in Saudi Arabia, over 70% are domestic helpers. The ban on maids from Indonesia and the Philippines hit Saudi households hard, causing many to resort to hiring illegal maids over Ramadan. The Saudis are reliant on foreign workers to perform their household tasks for them and very few Saudi women will work in such menial positions despite high unemployment, as they would be looked down on by other Saudis. The ban came into effect following the two countries attempts to introduce regulations for the work conditions of their nationals. Trade Arabia said both countries demanded better working conditions for their employees. Saudi walked away from the negotiations abruptly and decided to look for domestic employees from countries such as Morocco who they perceive as not as concerned about imposing regulations to protect their workers. It also became clear that lower rates of pay could be offered to other nationals. Right from the beginning the scheme ran into problems in respect to recruiting maids from Morocco. The recruitment committee said that the immediate employment of Moroccan maids could prove an issue as there were no official recruitment offices in Morocco to process the papers of prospective domestic helps. It was suggested that there could be a way around the problem with Saudi citizens being given work visas to bring housemaids from Morocco on their own. The whole issue of Saudi maids has been at the centre of international protests for years, especially in regard to exploitation, sexual harassment and torturing of foreign housemaids. The notion that individual Saudi's could fly to Morocco and find a young woman and take her back to Saudi, is truly worrying and will, no doubt, offend our readers. The chairman of the Council of Saudi Chambers of Commerce and Industry, warned Saudi citizens against contacting any offices claiming to be able to send housemaids from Morocco to the Kingdom. "They are all fake. You should not heed the false claims of these fake offices." he warned prospective employers. The spokesman of the Labor Ministry, Hattab Al-Anzi, said the recruitment offices would grant citizens work visas for housemaids from Morocco. "It is now the responsibility of the citizen to look for authorized private recruitment offices to bring workers from Morocco," he said. Then, suddenly, the plan to import maids from Morocco ran into even more problems. Those fighting to stop the "maid-trade" got support from an unlikely source - Saudi women. They objected to the importing of Moroccan girls, not because they didn't think they would work hard, or that they were against the exploitation of young foreign women. No - it was because they thought the Moroccan women were too beautiful. At first it sounded like a sick joke, but the Saudi women were serious.     "Many Saudi woman have objected to plans to import domestic workers from Morocco…they say the Moroccan women are beautiful and this will cause continuous anxiety and concern in Saudi families,” - 'Sharq' Daily It is a relatively rare for the voices of Saudi women to be raised in protest. This year there have been notable exceptions as some women protested for the right to drive, whilst others demanded the right to vote. Now they have another common cause - to ban female domestic maids from Morocco. It started slowly, but over a few days the protests grew to the point where the Saudi women inundated the government with complaints that Moroccan women are just too beautiful and may lure their husbands away. According to the website Emirates 24 the Shura Council was “deluged by demands from Saudi women” "Moroccan women are so attractive that their husbands could easily fall for them…others said Moroccans are good at magic and sorcery and that this could enable them to lure their husbands.” - 'Sharq' Daily If the women of Saudi Arabia fail to stop this "maid-trade" then it is imperative that the Moroccan government scrutinize the contracts and conditions of every maid taken to Saudi. They should also take steps to educate Saudi women to understand that while Moroccan women may be beautiful, they are not dangerous.

Thursday, 15 September 2011

Vogue group opens London fashion school

 

Having long passed judgement on the catwalk via the pages of Vogue, a leading magazine publisher is setting up its own fashion school in London. The Condé Nast College of Fashion and Design will open in September 2012, taking up to 300 students in its first year. With courses branded around its stable of monthlies and weeklies, its principal will be Susie Forbes, editor of Easy Living and former deputy editor of British Vogue. Last year, Condé Nast's British arm made £34.6m. It is thought the conglomerate's move into teaching may face hostility from the arts education community, with the capital already hosting the London College of Fashion and Central Saint Martins. Nicholas Coleridge, managing director of Condé Nast, said: "The reputation and authority of our brands puts us in a strong position to teach and inspire the fashion and decorating talent of the future."

Wednesday, 14 September 2011

Cheryl Cole | Cheryl Cole Flies To Afghanistan To Boost Troops' Morale

 

British singer Cheryl Cole has flown to Afghanistan to visit U.K. troops serving in the war-torn country. The Girls Aloud star made her way to the country's Helmand Province on Tuesday night (13Sep11) to surprise servicemen and women. Cole underwent special training to prepare for the hostile environment she will tour during her visit, which marks 10 years of British operations in the country. Her morale-boosting trip is being filmed as part of the annual Pride of Britain Awards, which will air on U.K. TV next month (Oct11). A source tells Britain's Daily Mirror, "Cheryl's amazed by the courage of all those serving our country. When she was invited to go out to see them in Afghanistan, she immediately said 'yes'. "She thinks it's such a great cause and they deserve all the recognition they get." Cole has largely been out of the public eye since she was fired from the U.S. version of The X Factor earlier this year (11).

Swingeing London by Richard Hamilton, showing Rolling Stone Mick Jagger in the back of a police car: a great modern history painting.

richard-hamilton-dies
Swingeing London by Richard Hamilton, showing Rolling Stone Mick Jagger in the back of a police car: a great modern history painting. Photograph: Serpentine

Richard Hamilton, the most influential British artist of the 20th century, has died aged 89.

In his long, productive life he created the most important and enduring works of any British modern painter.

This may sound a surprising claim. We have our national icons and our pop celebrities. But neither Francis Bacon nor Lucian Freud nor Damien Hirst has shaped modern art as Hamilton did when he put a lolly with the word POP on it in the hand of a muscleman in his 1956 collage, Just What is it that Makes Today's Homes So Different, So Appealing?

richard-hamilton-diesRichard Hamilton pictured last year. Photograph: Richard Saker

Hamilton has a serious claim to be the inventor of pop art: this collage is a visionary, yet ironic, manifesto for a new art that would be at home in the modern world. For him, in a postwar Britain of austerity measures, pop was a utopian ideal. Big, fast cars were the metal angels of a smooth, beautiful future.

I have been driven by Hamilton in his huge, sleek car. The experience was like stepping into one of his paintings. He drove me to his house, a modern dream home decorated with the works of Marcel Duchamp – or rather, Hamilton's own replicas personally approved by the maverick dadaist chess player.

Hamilton's second great influence on the art of today was his championing of Duchamp at a time when the Frenchman's subversive philosophical art was largely forgotten. One of Hamilton's masterpieces is his replica of Duchamp's Large Glass, in Tate Modern.

was an intellectual. He did not go for the guts, but the brain. His art is thoughtful, uneasy, even as it celebrates the power of technology. It also became increasingly political. He confronted issues from the Irish Troubles to both Iraq wars in works that dropped the cool mask for outright engagement, making him even more of a meaty and serious proposition.

Swingeing London, pictured above, in which Mick Jagger in lurid green jacket is enclosed in the back of a police car, shielding his face against the media glare, is a great modern history painting. So is Hamilton's portrait of IRA hunger striker Bobby Sands. These works analyse the way images are made, yet their intellect is saturated with outrage and compassion.

Hamilton saw our future coming. He even designed a computer as a readymade artwork in the early days of digital. He saw and accepted the way technology changes the human condition. Yet he cared about, and fought for, the human ghost in the machine. That is what makes him a great artist.

Monday, 12 September 2011

Rejuvenated Kinahan network 'back in trafficking'-

 

AN international drug trafficking network, built by Ireland's wealthiest criminal Christy Kinahan, is back in business, gardai believe. Operation Shovel, the European police crackdown that emanated from the work of the Garda National Drugs Unit (GNDU), dismantled the multi-million euro empire. But officers say that the gang members have "re-invented" themselves and are using old contacts in Spain, the Netherlands and Belgium to renew their role in drug trafficking. Kinahan (53) is regarded by gardai as being in the top tier of drug traffickers in the European league. "He's a 'Premiership' player," one officer said. "There is no doubt that Shovel caused major disruption of their lucrative business. But a leopard doesn't change its spots and we don't expect these people to undergo a conversion on the road to Damascus." Officers say co-operation between law enforcement agencies in Europe is "second to none and allows gardai to focus on Irish organised crime gangs (OCGs) involved in trafficking drugs that end up in Ireland". "Drug trafficking has always been a borderless crime for the gangs but now it is more or less borderless for us as the co-operation allows us to overcome former legal obstacles. "Law enforcement groups can reach out and take them, no matter who they are or where they are," the officer said. The mayhem created by Operation Shovel is partly responsible for the reduction in drug shipments coming into the country. "It's hard to quantify how much is due to Shovel and other intelligence successes and to the reduced demand arising from the recession." The fatal shooting of Eamon Dunne last year has also had an impact on the trafficking scene here and it has taken his old gang time to regroup after the murder. Not all of them have stayed together, but gardai are satisfied that some of them are again operating as an OCG even if the gang is not as potent as before the murder and does not represent the same threat. Others are keeping a lower profile and detectives say the personnel changes among the gangs have become very fluid. The GNDU does not operate on the basis of a Mr Big or Number One target. "We focus on certain figures, based on intelligence, public need and resources, but we don't respond to public outcry. A lot of the time we are dealing with relative unknowns, who can become big in the future," the officer said. The profits built up by gang leaders from drug trafficking and other crimes are assessed by the Criminal Assets Bureau. But many of those who make the headlines and live flash lifestyles in pubs and clubs, driving fast cars and surrounding themselves with "models", usually end up with little money at the end of their short-lived careers.

Freddie Thompson has spent most of the previous 15 months in England, returning only for brief visits to Dublin and the gang violence in the south city had reduced

 

Freddie Thompson has spent most of the previous 15 months in England, returning only for brief visits to Dublin and the gang violence in the south city had reduced. It is believed he was concerned that he would be arrested and extradited to Spain after Spanish police said they had issued a warrant for his arrest and extradition at the time of a series of high- profile raids in May last year on the mainly Irish gang led by Dubliner Christy Kinahan, who has been living in Estepona, Spain. However, the warrant has not been sent to gardai even though they have informed the Spanish authorities of his presence here. Thompson had been staying in Estepona up until shortly before the launching of Europe-wide raids aimed at the organisation, which Spanish, British and Europol police said was headed by Kinahan. There were 78 raids including 45 here, 21 in Spain and 12 in Britain. Some 34 people were arrested and €1m in cash seized. Spanish police said their criminal assets agency was investigating properties worth millions including a holiday resort in Brazil. Thompson was questioned in February 2007 when his associate, Paddy Doyle, 27, from Dublin was shot dead in Estepona but Thompson was not at the scene and it is thought the murder was carried out by Turkish mafia.

Forest fire burns out of control in Mijas

 

official in southern Spain says a forest fire burning out of control in the picturesque town of Mijas forced the evacuation of 300 homes. Andalusian regional government spokesman Agustin Perez said Monday the fire broke out Sunday evening, and most of the evacuees have since been able to return because strong winds fanning the flames have shifted. He said no one had been hurt in the fire. Mijas _ near the resort city of Marbella _ is a tourist magnet renowned for its narrow streets with whitewashed homes. More than 200 firefighters and 17 aircraft continue to battle the fire in a hillside area of pine trees and scrubland. Perez said the amount of land burned was not yet known. The regional government said Marbella was not threatened.

200 evacuated as forest fire spreads to Marbella

 

FIREFIGHTERS are battling a blaze which has so far led to the evacuation of over 200 people. The forest fire – which is threatening parts of Marbella and Ojen – broke out at around 8.30pm on Sunday evening in the Entrerrios area of Mijas. Efforts to tackle the fire – which has so far led to the evacuation of La Mairena and La Bugancilla urbanisations – are being hampered by high winds.

Irish drug gangs change tactics as downturn ruins their fortunes

 

Drug traffickers and other organised gangsters have lost millions of euro as a result of the recession. A huge fall-off in demand for cocaine, allied to a series of dodgy investments in property and shares, have devastated the lucrative nest eggs they had built up during the boom times. Now the criminals are switching their focus in a bid to recover some of their losses and tap into new areas. Dozens of Irish gangsters have become heavily immersed in the European scene and are no longer confining their activities to sending drug shipments back to Ireland. They have developed their range of contacts in countries such as the Netherlands, Spain and Belgium and are using these to buy into shipments intended for destinations with much larger markets than here. Gardai confirmed last night that the Irish are among the big players on the European scene and regularly show up on the radars of local police forces on the Continent. Interact "The Irish criminals have learned to follow the market and interact with other OCGs (organised crime gangs) to purchase large shipments and then become involved in selling on the drugs in smaller quantities," an officer explained. "There is a lot of crossover among the gangs and there are no cell structures that might exist in a terrorist organisation. "The Irish are acceptable as partners to become involved in joint enterprises with international gangs moving drugs from South America and west Africa to Spain and the Netherlands." Detectives from the garda national Drugs unit work closely with their European counterparts to combat the gangs as they know that, despite the reduced demand, they will continue to send shipments here and these are likely to increase again when the market improves. "The Irish picture is a reflection of what is happening globally. What is going on in the real economy is mirrored in the drugs world," the officer added. "The spending power of the end user has diminished and the state of the economy dictates that some drug types become more popular." A lot of people who were cocaine users can no longer afford to buy it, resulting in a big drop in demand and supply. The new drug of choice for many is herbal cannabis and the Irish gangs have discovered that's where the growth in the market lies although it took them some time to realise that the Chinese and Vietnamese gangs were ring fencing the new craze for growhouses. It makes economic sense for the gangs to develop growhouses as they can eliminate transportation and logistical costs, increase profits by removing the European middlemen, reduce the risk of being caught by police and customs services here and in Europe and face lower penalties for cannabis rather than cocaine dealing. The homegrown gangs have also suffered heavy financial losses as a result of advice from crooked accountants who advised them to invest in properties overseas or gamble on the stock exchange. During the Celtic Tiger era, traffickers extended lines of credit to customers and drugs were given out "on tick". But now the credit has disappeared and a lot of the dealers have been left with huge debts. The growhouses represent one of their main hopes of recovering some of those losses

Saturday, 10 September 2011

Alleged smuggler busted with cocaine-stuffed clams

In a decidedly unique twist on drug-smuggling, a Central American man was arrested for trying to sneak cocaine through Dulles International Airport by stuffing 15 bags of the illicit substance into clams, authorities reported Thursday. According to U.S. Customs and Border Protection officials, David Pocasangre Vaquiz, 26, of El Salvador, was caught Saturday while going through a routine security inspection after arriving on a flight from Panama. Inside his luggage, customs officers found a black plastic bag filled with 80 clams. An X-ray revealed that 15 of the bivalves had been opened, stuffed with baggies of cocaine, and glued shut. “Smugglers attempt all types of creative concealment methods to sneak their deadly poison into the United States, and this is one of the oddest we’ve seen,” Christopher Hess, director of D.C. Customs and Border Protection, said in a statement. Authorities said there was 5.36 ounces of cocaine in the clams, valued at approximately $10,000. That is a relatively small amount of cocaine when compared to other recent instances of attempts to smuggle drugs through Dulles. In June 2010, a Pennsylvania man was arrested after he was caught carrying about 4.5 pounds of cocaine — concealed in powdered-soup packets — with an estimated street value of $140,000. In March 2011, a man from Nigeria was arrested after authorities discovered the he had ingested nearly four pounds of heroin, valued at $125,000. “This passenger took an enormous risk for only five ounces of cocaine,” Hess said of Pocasangre Vaquiz, “and he now faces very serious narcotics smuggling charges.” Pocasangre Vaquiz’s preliminary hearing is Oct. 5 on charges of transporting narcotics into Virginia and possession with intent to distribute.

 

Thursday, 8 September 2011

Rock and roll legend Slash set to jet into Epsom

 

Rock and roll legend, Slash, of Guns and Roses fame will be jetting into the UK to be at the grand opening of GuitarGuitar in Epsom later this month. The guitar hero, famed for his aviator glasses, top hat and legendary licks, will be in store for a special autograph signing and to slash the sash to open the largest guitar emporium in the UK. A handful of lucky competition winners will be invited to meet the man himself at this exclusive event which will take place on Thursday, September 15 from 2.30 to 5pm. Five exclusive Dunlop pedals, signed by Slash, made available in partnership with the not for profit Surrey organisation, Love of Learning, will also be available to purchase at a cost of £200.

Reese Witherspoon suffers ‘minor injuries’ after being hit by car, 84-year-old driver involved

 

Reese Witherspoon has suffered ‘minor injuries’ after being hit by a car. The actress was reportedly out jogging when she was struck at around 11am in the Santa Monica area. The 84-year-old driver of the car stopped and was reportedly cited and released. She is not believed to have ben injured, while Witherspoon was treated for her minor injuries and is now recovering at home. Witherspoon married Jim Toth earlier this year. She has two children from her previous marriage to Ryan Phillippe and won an Oscar for Walk the Line.

Monday, 5 September 2011

Dave Courtney believes the killer of his murdered stepson attended his funeral.


After burying gunned-down Genson, 23, at a huge funeral in south-east London, the notorious underworld leader of 'The Firm' mob said he could not sleep in the knowledge that the killer remains at large.

Clad in white, the 53-year-old was surrounded by minders from the Outlaw gang as he paid his last respects with his devastated wife and mother of Genson, Jenny.

Mourning: Dave Courtney with Genson's mother Jenny at the funeral of the gunned-down cage fighter

Mourning: Dave Courtney with Genson's mother Jenny at the funeral of the gunned-down cage fighter

Murdered: Genson Courtney, 23, was shot dead while he waited in his car outside of his girlfriend's home in Greenwich

Murdered: Genson Courtney, 23, was shot dead while he waited in his car outside of his girlfriend's home in Greenwich

Genson, nicknamed 'G-Man', was ambushed as he got into his VW Golf outside his girlfriend's home in Greenwich, south-east London in July.

The victim, whose stepfather has written books about gangland violence, was blasted by a lone gunman in the head and shoulder before his assailant fled on foot.

Police suspect a major drugs baron owed thousands of pounds by Genson ordered his execution just before 11pm on Sunday.

There is also a theory he could have been lured to the area after being caught up in an ongoing feud between gangs.

But the Daily Star on Sunday newspaper says some sources from Genson's gang claimed to them that the shooting had been ordered by the young man's own stepfather.

They claim Mr Courtney, from Plumstead, South London, had a grudge against his stepson after he was beaten by him in a fight following a family row.

But the former debt collector, who claims to have been shot, stabbed and had his nose bitten off, rubbished the accusations.

'this has nothing to do with me and I honestly don't think ,y past has had any influences on my kid.

'Whether I'm gonna get chastised for this or not, I was aware what he was and I just tried to make him do that as much as possible. I could not have stopped this and I definitely didn't make it happen.'

 

 

The Daily Star on Sunday said the gangster paid £2,500 for the coffin's plot in the send-off, which cost £4,00 and was held in Eltham.

Killer on the loose: 'Dodgy' Dave Courtney, with wife Jenny, says he cannot sleep knowing that the person responsible for Genson's death is still out there

Killer on the loose: 'Dodgy' Dave Courtney, with wife Jenny, says he cannot sleep knowing that the person responsible for Genson's death is still out there

 


Send-off: Hundreds turned out to pay their respects to the 23-year-old, whose execution police suspect was ordered by a drug baron

Send-off: Hundreds turned out to pay their respects to the 23-year-old, whose execution police suspect was ordered by a drug baron

Courtney, who was jailed in the Eighties for attacking five men with a meat cleaver, also boasts that he has been involved in assault and murder.

He often focuses on his links with Reggie Kray and the infamous criminal Lenny McLean and is said to be a central figure in a loose collection of villains who refer to themselves as The Firm.

He refers to himself as Dave Courtney OBE – 'One Big Ego' - and has a painted depiction of himself as a knight on his house.




Lady Gaga is serious about fashion and she doesn't take its criticism lightly.

Lady Gaga is serious about fashion and she doesn't take its criticism lightly. In her latest column for V Magazine, she sends out a memo slamming negativity from critics, including New York Times fashion critic Cathy Horyn, and poses the question: when does criticism become "insult and not insight"?

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"Doesn’t the integrity of the critic become compromised when their writings are consistently plagued with negativity?," Lady Gaga writes. "When the public is no longer surprised or excited by the unpredictability of the writer, but rather has grown to expect the same cynicism from the same cynic?"

Lady Gaga does name one critic specifically, Horyn, but not a particular story the pop singer may have found offensive. She does "copy" the memo to her friend Nicola Formichetti, who she collaborated with for Thierry Mugler. For the most part, Horyn had good things to say about the collection.

"What I think is so promising about Nicola Formichetti’s first women’s collection for Mugler is that he created a look for the runway; for magazine stylists like himself; for performers like his friend Lady Gaga, who modeled two outfits at Wednesday’s night show; and for the girls who love fashion and always have some place to go," Horyn said about the collection back in March, also noting that Gaga "worked it" on the runway.

Not so negative. Could it have been some negative words said about Gaga's other friends in the fashion biz such as Galliano or Jean Paul-Gaultier? She doesn't say. But Gaga wants to put less emphasis on professional fashion critics and more on, well, everyone else who's got a pulse and an Internet connection.

"In the age of the Internet, when collections and performances are so accessible to the public and anyone can post a review on Facebook or Twitter, shouldn’t columnists and reviewers, such as Cathy Horyn, employ a more modern and forward approach to criticism, one that separates them from the average individual at home on their laptop?" Gaga writes.

Gaga instead names Tavi Gevinson as the "future of journalism," that infamous 15-year-old fashion blogger who famously began writing for fashion well before she could land a driver's permit and can now be found sitting front row at some of the biggest runway shows.

You can check Gaga's full column at the V Magazine website. Meanwhile, we'll be awaiting Cathy Horyn's response and maybe a clue as to what angered Gaga so. Did Horyn slam her drag king look at the VMA's? Or maybe her faux penis accessory?




Sunday, 21 August 2011

Is Apple Worth More Than the Largest Banks in Europe

What if you were told that Apple (AAPL) is worth more than 32 of the largest banks in Europe? A new Reuters article states "Technology company Apple is now worth as much as the 32 biggest euro zone banks. That's the stark result from a steep fall in the share price of banks including Spain's Santander (STD), France's BNP Paribas, Germany's Deutsche Bank (DB) and Italy's Unicredit, compared to a steady rise in Apple's valuation, according to Thomson Reuters data. Earlier on Friday the DJ STOXX euro zone banks index fell 4 percent, valuing its 32 members at $340 billion. That's based on the market capitalization of their free-float shares, which for some French banks in particular is less than 100 percent." Read the entire article here.
It is absolutely amazing to see this contrast in valuation, and it says that either the financial system in Europe is possibly at risk of collapse or that it is just way too undervalued. It could also say that Apple is overvalued, but based on the growth and price to earnings ratio, it is hard to say Apple is expensive. Some of these European banks look downright cheap and most of them, possibly all of them, will survive the current challenges. Here is a closer look at a few leading European banks, as well as Apple:
Apple, Inc. (AAPL) shares are trading over $356.03. Apple is a leading maker of computers and mobile devices. The 50 day moving average is $359.94 and the 200 day moving average is $342.37. Earnings estimates for AAPL are about $27.41 per share in 2011 and $32.12 for 2012. The 52 week range is $235.56 to $404.50. Apple is a great company and will probably continue to be a solid investment for the foreseeable future. The market cap is about $331 billion. I would buy AAPL on dips.
Banco Santander (STD) is trading at $8.72. STD is a major bank and is based in Spain. These shares have a 52 week range of $8 to $13.52. The 50 day moving average is $10.25 and the 200 day moving average is $10.89, so the shares are trading well below support levels. Estimates for STD are at $1.25 per share in 2011. The headlines about Spain, Portugal and other countries have been very negative lately over concerns of sovereign debt defaults and the Euro as a currency. The market cap is about $53 billion.
Barclays PLC (BCS) shares are trading at $9.89. Barclays is a leading banking and financial services company based in the United Kingdom. The 50 day moving average is $14.51 and the 200 day moving average is $17.34. The 52 week range for these shares is $9.85 to $21.69. Earnings estimates for BCS are about $1.88 per share for 2011. BCS pays a dividend of 26 cents per share, which is equivalent to a 2.3% yield. The book value is stated at $28.15. The market cap is about $29 billion.
Banco Bilbao Vizcaya (BBVA) is trading at $8.66. BBVA is a major bank and is based in Spain. These shares have a 52 week range of $8.02 and $14.05. The 50 day moving average is $10.30 and the 200 day moving average is $11.04, so the shares are trading way below support levels. Estimates for BBVA are at $1.18 per share in 2011 and $1.39 for 2012. Book value is stated at $11.34. The headlines about Spain, Portugal and other countries have been very negative lately, over concerns of sovereign debt defaults and the Euro as a currency. The market cap is about $39 billion.
ING Group NV (ING) shares are trading at $7.81. ING is a leading banking and financial services company, based in the Netherlands. The 50 day moving average is $10.67 and the 200 day moving average is $11.34. The 52 week range for these shares is $7.76 to $13.41. Earnings estimates for ING are about $2.15 per share for 2011. The book value is stated at $15.53. The market cap is about $30 billion.
Deutsche Bank AG (DB) shares are trading at $38.44. Deutsche Bank is a leading banking and financial services company based in Germany. The 50 day moving average is $52.75 and the 200 day moving average is $56.81. The 52 week range for these shares is $38.32 to $67.64. Earnings estimates for DB are about $7.54 per share for 2011. DB pays a dividend of 79 cents per share, which is equivalent to a 1.8% yield. The book value is stated at $79.27. The market cap is about $35 billion.
The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

 

Thursday, 4 August 2011

Eventually, French Spreads Fail (E.F.S.F.)

Everyone seems to be waking up to the record spread between French bonds and Bunds at the moment. Having risen in July, it’s reached another record eurozone high on Wednesday of 81bps. French yields are low but clearly the debt is under-performing.

Is 100bps too far off?

No — actually the more Italy and Spain worsen and therefore the guarantees they provide to the EFSF look dodgier (especially if it gets used to prop them up and they step out), the more France is sucked in. Divyang Shah of IFR Markets puts it really well:

Italy and Spain have seen their contribution to the EFSF go up from 18% and 12% to 19% and 13%, respectively, without Greece, Ireland and Portugal. For Germany and France the increases have been from 27% and 20.5% to 29% and 22% respectively. But the market pressure on Italy and Spain has seen both enter the spotlight and if they decide they cannot contribute, then the funding required from Germany and France would go up to 43% and 32% respectively. Given the total of 75%, it would be hard to argue that we don’t already have a transfer union for the Eurozone.
The 10-year spread on France/Germany has widened out beyond its July peak to its widest level since mid-1990. The 10-year spread on Belgium/Germany has broken through 200bps and currently at 203bps is close to breaking its record wide level just under 215bps from early 1999. Both are significant, but especially so the moves seen in France. It suggests that investors no longer regard it as part of the core and have been for the last few weeks trimming exposure.
When a country steps out of its guarantee, the shortfall is shared between all the other guarantors – not just France and Germany. The point is though that their shares are huge already. We hate to resurrect the cliché… but this is another single point of failure like Italy itself. Any system that has multiple SPOFs is in trouble.

And it basically goes back to this thing when you consider that France’s AAA rating might also be a point of failure…

For instance, the IMF’s recent Article IV staff report on France forecast that debt to GDP would reach 85-95 per cent by 2013, depending on fiscal reforms, interest rates and growth, but not counting contingent liabilities from the EFSF. If France’s EFSF guarantee did rise to 32 per cent of total guarantees (to around €250bn) it seems to work out around 10 per cent of GDP. Not entirely reassuring. Some IMF AAA charts to close:

 

5,700 Britons were arrested overseas last year,

5,700 Britons were arrested overseas last year, although the Foreign and Commonwealth Office said this was 10% fewer than 2009/10

Drug arrests also fell by almost 20%, according to its new British Behaviour Abroad report.

The highest number of arrests were in Spain and the United States. However, proportionally, tourists are most likely to be arrested in Thailand, according to the report.

Drug arrests continue to be a significant problem for some countries, it said, particularly parts of South America and the Caribbean where a high proportion of total arrests were drug related.

The FCO has launched a new ad campaign uring Britons to steer clear of drugs overseas.

The British Behaviour Abroad report also shows that the number of Brits hospitalised abroad increased to 3,752 cases, despite fewer people from the UK travelling abroad last year.

Cases of rape in Greece have almost halved since 2009/10, down from 27 to 15, though the number of sexual assaults rose 'significantly', according to the FCO.. Proportionally the highest number of sexual assaults occurred in Egypt, followed by Turkey.

The report showed that the Philippines was the country where Britons were most likely to need assistance of the FCO, followed by Thailand then Pakistan.

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