IBM major announcement points to deal on chip manufacturing..2015 earnings forecast ditched

•October 21, 2014 • 1 Comment

Globalfoundries_logo

http://www.pcworld.com/article/2835872/ibm-major-announcement-points-to-deal-on-chip-manufacturing.html

Under pressure to boost margins, IBM is set to make what it calls a “major business announcement” Monday morning, raising the possibility that it has finalized a deal to transfer chip-making operations to GlobalFoundries.

IBM announced Sunday that it would be issuing its quarterly earnings statement early Monday, moving it up from its previous schedule, timed for after the close of markets. The company said it would also separately make a business announcement.

IBM CEO Ginni Rometty is looking for ways to increase margins as revenue growth slows while it transitions to new technology and services offerings. One way to do this is to shed less profitable parts of the business. The company’s chip manufacturing operations in East Fishkill, New York, is one of them.

Reports surfaced this summer that IBM was working on a deal to have GlobalFoundries take over the plant. The deal fell though at the time, however, over disagreement on the amount of money IBM would pay GlobalFoundries to take over the money-losing fab, reports said. IBM was offering $1 billion, but GlobalFoundries wanted $2 billion, according to a Bloomberg report.

IBM has been steadily shedding its hardware assets and is closer to taking on a chip licensing model approach much like ARM Holdings. IBM earlier this month closed a deal to sell its x86 server business to Lenovo for $2.1 billion. Its hardware business now centers around Power architecture, which is best known for powering the Watson supercomputer, which outwitted humans in the TV game show “Jeopardy.”

For decades, IBM made Power servers in-house, but is now working with other hardware makers to bring the chip architecture to more servers. IBM last year started licensing Power architecture so third-party companies can develop chips, servers and components. It also formed the OpenPower Foundation—which boasts Samsung, Google, Tyan and Nvidia as members—to promote Power-based software and hardware development.

If the deal with GlobalFoundries goes through, IBM will likely move the manufacturing of its Power chips into the hands of the Santa Clara, California, company. GlobalFoundries has many factories worldwide including, one in Malta, New York. IBM would also further reduce the size of the company’s Systems and Technology Group, which is responsible for hardware.

http://en.wikipedia.org/wiki/GlobalFoundries

The Emirate of Abu Dhabi is the owner of the company through its subsidiary Advanced Technology Investment Company(ATIC).

http://en.wikipedia.org/wiki/Advanced_Technology_Investment_Company

Advanced Technology Investment Company (ATIC) is an investment company in the high-technology sector,owned by Mubadala Development Company, a wholly owned investment vehicle of the Government of Abu Dhabi, in the United Arab Emirates.

ATIC wholly owns GlobalFoundries, the world’s second largest semiconductor foundry company by revenue.

Mubadala_Logo

http://en.wikipedia.org/wiki/Mubadala_Development_Company

Mubadala’s mandate is to facilitate the diversification of Abu Dhabi’s economy. Its focus is on managing long-term, capital-intensive investments intended to deliver strong financial returns and tangible social benefits for the Emirate.

***

http://www.smh.com.au/business/markets/ibm-plunges-as-2015-earnings-forecast-ditched-profit-falls-20141021-1192k6.html

International Business Machines Corp. plunged to a three-year low after abandoning an earnings forecast for 2015, as the company struggles to transform fast enough to handle the shift to cloud computing.

IBM said it will provide an update on its projections in January, ditching a five-year plan to boost profit. The shares tumbled 7.1 per cent, dragging down the Dow Jones Industrial Average. Warren Buffett, IBM’s biggest shareholder, had $US900 million of his investment wiped out.

While Chief Executive Officer Ginni Rometty had been banking on a strong second half of the year, IBM instead faced weaker-than-expected software sales and lower productivity in services in the third quarter. With technology customers moving from owning hardware to storing data in the cloud, IBM is now cutting more jobs, reducing its forecast for free cash flow and handing over an unprofitable chip unit to Globalfoundries Inc.

“Obviously we were disappointed in this quarter,” Rometty said on a conference call today with analysts, adding that the company is facing “unprecedented change” in the industry. “We have more to do and we need to do it faster.”

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IBM to transfer its chip making division is a sign of the times..the stock market didnt like the profit falls either..

look who is getting it..globalfoundries who is owned by abu dhabi’s government backed investment company ATIC who is owned by mubadala and havent they got a cute logo..as above so below..

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EU exit would leave Britain with zero influence says Barroso

•October 21, 2014 • 8 Comments

José Manuel Barroso

http://www.bbc.com/news/uk-politics-29680059

The UK would have “zero” influence if it voted to leave the EU, the outgoing president of the European Commission has said.

Jose Manuel Barroso said Britain could not negotiate with the US and China “on an equal footing” on its own.

He also said free movement of people within the EU was an “essential” principle that could not be changed.

Conservative Party chairman Grant Shapps said Mr Barroso was “out of touch” and an “unelected bureaucrat”.

Mr Barroso was asked about Prime Minister David Cameron’s stated intention to negotiate a better deal for the UK in Europe, ahead of an in/out referendum.

The prime minister has said he will “not take no for an answer” and “get what Britain needs” on the question of freedom of movement.

If the Conservatives remain in power, a referendum would be held by 2017, Mr Cameron has said.

Speaking on the BBC’s Andrew Marr Show, Mr Barroso, whose term of office ends this month, said he believed Mr Cameron wanted Britain to remain in the EU.

“Britain is stronger in the European Union,” Mr Barroso said, pointing to the Ebola crisis as an area where Britain would not have the same level of influence if it was outside the EU.

“David Cameron wrote to all of us about Ebola… What would be the influence of a prime minister of Britain if it was not part of the European Union?

“His influence would be zero.”

Mr Cameron has said he wants to curb migration within the EU and last week pledged to have “one last go” at renegotiating the rules for Britain.

The Conservatives lost the recent Clacton by-election to the UK Independence Party, which wants the UK to leave the EU.

————

“Jose Manuel Barroso said Britain could not negotiate with the US and China “on an equal footing” on its own.”

bullshit..the hub of the financial world would still hover over all financial dealings globally like a ghostly shadow..

the EU cant afford to not have the UK in it..thats the truth..

401

Germany’s intel agency says MH17 downed by Ukraine militia..did we expect anything less?

•October 21, 2014 • 3 Comments

3

http://rt.com/news/197316-germany-blames-militia-crash/

Germany’s BND foreign intelligence agency says a local militia shot down Malaysia Airlines flight MH17 in eastern Ukraine in July, Der Spiegel reports. The BND is said to possess “ample evidence,” though none of it has been made public.

The statement was made on October 8, when Bundesnachrichtendienst (BND) president Gerhard Schindler was holding a secret meeting with members of the parliamentary control committee, the German dailyreported on Sunday.

He claimed the militia fired a rocket from a BUK defense missile system which it had captured from a Ukrainian base. It then exploded next to the plane, according to the report.

“Schindler provided ample evidence to back up his case, including satellite images and diverse photo evidence,” the report added.

However, no “evidence” has yet been made public, and the BND has not made any official statements on the matter.

At the same meeting, Schindler reportedly said that certain intelligence on the crash provided by the Ukrainian side was false, adding that “this can be explained in detail.” However, he did not give much credit to Russia’s evidence either.

The German Federal Prosecutor’s Office told the newspaper that an investigation has been launched into unknown perpetrators under the possibility that the downing had been a war crime.

First deputy prime minister of the Donetsk People’s Republic, Andrey Purgin, refuted claims made by the German intelligence agency. He told Interfax that Kiev forces could have downed the plane, mistaking it for a spy jet.

Malaysia Airlines flight MH17 was heading from Amsterdam to Kuala Lumpur when it was downed over eastern Ukraine on July 17, killing all 298 passengers and crew. Nearly two-thirds of the passengers were from the Netherlands.

The ongoing international probe led by the Dutch has not yet established who the perpetrators were. A preliminary report issued in September said only that the plane crashed as a result of structural damage caused by a “large number of high-energy objects” that struck from outside.

———–

“He claimed the militia fired a rocket from a BUK defense missile system which it had captured from a Ukrainian base. It then exploded next to the plane, according to the report.”

perhaps they also stole Ukrainian uniforms?

“Schindler reportedly said that certain intelligence on the crash provided by the Ukrainian side was false, adding that “this can be explained in detail.”

so who is telling the truth?

401

China rail official given death sentence for corruption..Australia to seize assets of corrupt Chinese officials

•October 21, 2014 • 2 Comments

_78299648_117709103

http://www.bbc.com/news/world-asia-china-29655466

The former deputy chief engineer of China’s disbanded railways ministry has been given a suspended death sentence for corruption, state media report.

Zhang Shuguang was found guilty by a court in Beijing of taking bribes of more than 47m yuan ($7.7m; £4.8m) over 11 years.

The court heard he used his position to help companies secure rail contracts.

He was an associate of Liu Zhijun, the former railways minister who was given a suspended death sentence in 2013.

Many officials of different ranks have been charged in recent months after China’s leader Xi Jinping called for a crack down on corruption.

Zhang was fired from his position in February 2011, soon after Liu was taken into detention.

Zhang pleaded guilty to 13 charges related to bribery in court in September.

Friday’s death sentence was suspended for two years, however, death sentences are often commuted to life imprisonment in China. Zhang was also deprived of his political rights for life and had his property confiscated.

His deputy Su Shunhu was found guilty of taking bribes worth more than 24m yuan and jailed for life.

Once a very powerful department, China’s railways ministry was dismantled in March last year.

It came after two high-speed trains collided in 2011, killing 40 people. The incident led to a probe into the industry and many officials were charged with corruption and abuse of power.

China has the world’s longest network of high-speed rail lines with more than 10,000km (6,200 miles) of track.

http://www.smh.com.au/world/australia-set-to-seize-assets-of-corrupt-chinese-officials-20141020-118kl3.html?utm_source=outbrain&utm_medium=cpc&utm_campaign=finance

The Australian Federal Police are poised to seize assets of corrupt Chinese officials within weeks, in an unprecedented joint operation with their Chinese counterparts.

In an exclusive interview with Fairfax Media, Commander Bruce Hill, the manager of the AFP’s operations in Asia, has confirmed Australia has agreed to assist China in the extradition and seizure of assets of corrupt officials who have fled to Australia with illicit funds running into the hundreds of millions of dollars.

The joint operation will make their first forfeiture of assets within weeks, having agreed on a priority list of alleged economic fugitives who have taken residence in Australia – identified by Beijing as one of the most popular outlets for corrupt Chinese money.

Among the suspects identified by the AFP are naturalised Australian citizens and permanent residents who for years have laundered money under the guise of being genuine investment or business migrants from China.

“They don’t all of a sudden leave overnight and take a bag of money with them. In some cases they’re very carefully planned,” Commander Hill said, who explained that a typical scenario involves officials sending their spouses and children overseas, often using them as a conduit to shift assets offshore. With barely any assets to their name, the so-called “naked official” – as is the popular term for them in China – is then able to join their family overseas at the first whiff of trouble.

“As time goes on, they start to put [their funds] into legitimate assets such as houses and property and shares and bank accounts and then the money becomes their wealth,” Mr Hill, who is based in Beijing, said. “But it’s never been their money to start with in the first place; it’s the corrupt money flowing out of China.”

The sums of money believed to have been spirited out from China are staggering. The Washington-based Global Financial Integrity group, which analyses illicit financial flows, estimates that $US3 trillion flowed out of China illegally between 2005 and 2011.

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imagine if this chinese law was adopted all over the world in regards to corruption..we might see a few knobs second guessing themselves..

“The Australian Federal Police are poised to seize assets of corrupt Chinese officials within weeks”

who will they give the money to?..its not chicken feed..do the aussies get a cut?

“The Washington-based Global Financial Integrity group, which analyses illicit financial flows, estimates that $US3 trillion flowed out of China illegally between 2005 and 2011.”

and this could be the tip of the iceberg..this is big money..

401

19 UK firms alleged complicit in $20bn laundering scam

•October 21, 2014 • 3 Comments

656345436343

http://rt.com/uk/196452-uk-money-laundering-fraud/

Some 19 British firms are at the center of an investigation into in a mammoth global money-laundering operation. The scheme was allegedly contrived to make $20bn (£12.5bn) worth of ill-gotten gains appear legitimate.

The illicit funds are thought to have originated from criminal gangs and corrupt officials across the globe, attempting to make their dirty money appear ‘clean’ so it can be spent free of suspicion.

An investigation carried out by The Independent and UK NGO the Organised Crime and Corruption Reporting Project (OCCRP) uncovered a complex international web of companies, which are implicated in the scheme. As part of the probe, a minimum of 19 UK firms are currently under investigation, it emerged on Thursday.

The criminal operation highlights how  Because directors of British firms are afforded a high degree of financial secrecy under UK law, the identities of the scam’s primary architects are extremely difficult to determine.

The cross-border money laundering scheme was in operation for four years before it was uncovered in May by criminal investigators in Moldova. In tandem with Britain, the former Soviet republic was one of the scam’s core focal points.

Vasile Sarco, an officer at the center of the Moldovan investigation, told The Independent the tainted money was originally channeled from Russia, but that UK firms were vital to its re-routing and ‘cleaning’. Sarco sought assistance from UK police to help decipher the operation’s British dimension.

Vital to the process of money laundering, is the creation of an impression the funds have been earned legitimately. As a result, criminals often work to cultivate documentation that indicates their tainted funds stem from honourable origins.

In past cases, criminals have often taken over legitimate firms for the purpose of laundering dirty money. But when illicit funds generated from criminal activity amount to billions, such straightforward schemes become impractical, and more complex laundering operations are required.

In the scam, uncovered by the Independent and OCCRP, front companies were created in Britain which conducted fake and fraudulent business deals amongst one another. These ‘shell companies’ subsequently sued one another in Moldovan courts, demanding they be repaid loans amounting to hundreds of millions of pounds.

As part of the scam, a Moldovan judge would issue a ruling in favor of the claimant firm, which subsequently received a large payment from the opposing company. Related judgments resulted in the creation of court documents that legitimised such transactions.

But rather than flow from one UK firm to another, the funds were channeled from Russia – an international money laundering hot spot, which attracts gangs and corrupt officials from across the globe looking to ‘clean’ ill-gotten gains. Generally such dirty money stems from political corruption, white collar crime, human trafficking, drug dealing and prostitution.

Once the illicit funds arrived in the accounts of UK front companies in Moldova, the money was funneled into a bank in Latvia. Latvia’s banking system is integrated with the EU, and considerably well regulated. As a result, this final phase of the operation bolstered the tainted funds’ apparent legitimacy.

Because of its lax financial regulation, Britain has become a focal point for money laundering schemes. Front companies can be set up on British soil with little oversight.

Multiple money laundering operations, involving swathes of UK companies, are thought to be used by criminal gangs and corrupt officials from places as far-flung as Syria, Japan, and South America.

The launderers behind this latest scam were able to shift the jurisdiction of their lawsuits to Moldova by employing Moldovan citizens as guarantors in their fraudulent business deals. The false debts central to the operation were also guaranteed by Russian firms.

The UK firms under investigation were registered at regular office buildings in London, Belfast, Edinburgh, Glasgow and Birmingham, according to the Independent.

However, their true ownership is obscured by a web of shell companies and nominee directors in offshore tax havens, such as the Seychelles, the Bahamas and the Marshall Islands.

Nominee directors are third party individuals officially registered as administrators of offshore companies. This allows true benefactors or managers to remain entirely anonymous. They are often central to aggressive, yet legal, tax avoidance schemes.

————

they are shelf companies and the trails to the owners will be hidden in a myriad of webs..but the point here is this which i highlighted:

Because of its lax financial regulation, Britain has become a focal point for money laundering schemes. Front companies can be set up on British soil with little oversight.”

and:

Britain’s lax regulatory architecture has made the UK a particularly alluring destination for global organized crime syndicates looking to launder ill-gotten gains.”

and this:

directors of British firms are afforded a high degree of financial secrecy under UK law”

nice one..

401

Angola, Malaysia, Spain, Venezuela and New Zealand win UN security council seats but Turkey rebuffed

•October 20, 2014 • 2 Comments

201410161912986734_20

http://timesofindia.indiatimes.com/world/europe/Venezuela-New-Zealand-win-UN-Security-Council-seats-but-Turkey-rebuffed/articleshow/44844205.cms

Angola, Malaysia, New Zealand, Spain and Venezuela won coveted seats at the UN security council on Thursday, but Turkey suffered a humbling defeat in its bid to join the world’s “top table.”

The five countries garnered the required two-thirds support from the 193 countries of the UN General Assembly during three rounds of voting that ended with Turkey picking up only 60 votes.

Turkey had been competing against New Zealand and Spain for two seats and had dispatched Foreign Minister Mevlut Cavusoglu on a high-profile mission to New York this week to lobby for votes.

Angola, Malaysia and Venezuela were virtually assured to win election as their candidacies had been put forward by their region and they ran unopposed on their slates.

After New Zealand’s resounding victory in the first ballot, Foreign Minister Murray McCully called the outcome a “strong vote of confidence” in his country, capping a 10-year campaign for the ultimate diplomatic prize.

“To receive the success that we have had this morning means a lot to us and we will work very hard to make sure we give good service on the council,” McCully told reporters at UN headquarters.

Venezuela won 181 votes despite criticism from rights groups and the United States over its support for Iran, Syria and other hardline regimes that are at loggerheads with the West.

Venezuela’s President Nicolas Maduro called the vote “a victory, a world record of support, love and confidence. One hundred eight-one countries have said here we are, we support you.”

“We should feel happiness and joy in our hearts that Venezuela is beloved country in the world,” he added, speaking in Caracas.

“To those birds of ill omen who say Venezuela is isolated in the world — who is isolated? The country that received 181 votes?”

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new puppets for the puppet show..new zealand a “5 eyes member” gets tagged in..

401

Tom Clancy: The Division trailer..”Dark Winter”

•October 20, 2014 • Leave a Comment

tom-clancy-s-the-division

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thanks to james blundell for the link..

tom clancy..”insider”..

401

 
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