Moody’s has downgraded a dozen Australian banks

•June 21, 2017 • 1 Comment

http://www.smh.com.au/business/banking-and-finance/moodys-downgrades-australian-banks-credit-rating-20170619-gwuafj.html

Credit rating agency Moody’s has downgraded a dozen Australian banks, including the big four, citing increased risks in the nation’s increasingly indebted households.

Moody’s stripped the big four banks – the Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac Banking Corporation (Westpac) – of their Aa2 long-term rating and placed them on the next level down at Aa3, although it did not alter their short term ratings.

Other smaller banks were also downgraded including Bendigo and Adelaide Bank, Members Equity Bank Limited and Credit Union Australia Limited.

The big four banks had been on a negative outlook but that had now been changed to stable Moody’s said in a statement released on Monday night.

“In Moody’s view, elevated risks within the household sector heighten the sensitivity of Australian banks’ credit profiles to an adverse shock, notwithstanding improvements in their capital and liquidity in recent years,” the statement said.

Moody’s did not think a “sharp housing downturn” was a “core scenario” the risk posed by increasing household debt had to be considered when weighing the ratings of Australian banks.

“In Moody’s assessment, risks associated with the housing market have risen sharply in recent years. Latent risks in the housing market have been rising in recent years, because significant house price appreciation in the core housing markets of Sydney and Melbourne has led to very high and rising household indebtedness,” the statement said.

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oops?

“risks associated with the housing market have risen sharply in recent years.”

a bubble by any other name..

“Moody’s stripped the big four banks – the Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac Banking Corporation (Westpac) – of their Aa2 long-term rating and placed them on the next level down at Aa3, although it did not alter their short term ratings. Other smaller banks were also downgraded including Bendigo and Adelaide Bank, Members Equity Bank Limited and Credit Union Australia Limited.”

my bank is in there..

401

Putin meets with Ethereum founder to create national virtual currency

•June 21, 2017 • 7 Comments

http://www.zerohedge.com/news/2017-06-12/putin-meets-ethereum-founder-create-national-virtual-currency

Two weeks ago, in our latest comparison of Bitcoin and its up and coming competitor, Ethereum, we said “step aside bitcoin, there is a new blockchain kid in town.” Actually, we said that for the first time back in February when Ethereum was still trading in the low teens (the return on ETH since then is roughly 3000%), but the most recent glance provided some perspective on where the competition between the two largest cryptocurrencies may culminate, because according to at least two venture capitalists, the market cap of Ethereum – currently roughly $35 bilion – and whose share of the market has been soaring, will surpass that of Bitcoin, at ~$43 billion although it changes by the second, sometime before the end of 2018.

Two things: first, at the current rate of gains in Ethereum market share (and loss in Bitcoin’s), the inflection point between the two will come not in months, or weeks, but perhaps days.

Second, said inflection point may come in even faster if Vladimir Putin has anything to say about it, because as Bloomberg reports, “Ethereum has caught the attention of none other than the Russian president as a potential tool to help Russia diversify its economy beyond oil and gas.” Putin met Ethereum’s young founder Vitalik Buterin on the sidelines of the St. Petersburg Economic Forum last week and supported his plans to build contacts with local partners to implement blockchain technology in Russia, according to a statement on Kremlin’s website.

Speaking at the Economic Forum, Putin said that “the digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business model” and discussed means to boost growth long-term after Russia ended its worst recession in two decades. As explained repeatedly over the past 6 months, besides being a method of exchange, Ethereum is also a ledger for everything from currency contracts to property rights, speeding up business by cutting out intermediaries such as public notaries. It also does not suffer from some of the size limitations that have paralyzed bitcoin in recent months.

https://en.wikipedia.org/wiki/Ethereum

https://en.wikipedia.org/wiki/Vitalik_Buterin

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watch this space..ethereum is making a play to be the top dog over bitcoin..

“Ethereum has caught the attention of none other than the Russian president as a potential tool to help Russia diversify its economy beyond oil and gas.”

follow the money..

“the market cap of Ethereum – currently roughly $35 bilion – and whose share of the market has been soaring, will surpass that of Bitcoin, at ~$43 billion although it changes by the second, sometime before the end of 2018.”

401

The Qatar blockade

•June 21, 2017 • 17 Comments

https://www.rt.com/op-edge/392253-qatar-saudi-iran-gas-yuan/

Qatar hasn’t been playing ball with the US-approved, Saudi-led ‘isolate Iran’ program. Partly because Doha has made independence from Riyadh a hallmark of its foreign policy, but mostly because Qatar and Iran share the world’s largest natural gas field.

US President Donald Trump’s speech to the assembled Gulf leaders in Saudi Arabia on May 21 is worth reading in full. It is deeply disturbing.

Having praised himself for his $110 billion arms deal with the Saudis, he goes on to talk about the threat posed by terrorism, and what a wonderful job the US and the Gulfies – that is, the leading state sponsor of the region’s supremacist death squads and its assembled proxies – are doing in combating it. He then goes on to claim that at the root of the region’s terrorism lurks… guess who? The power leading the regional pushback against Islamic State (IS, formerly ISIS) and Al-Qaeda: Iran.

Starving terrorists of their territory, their funding, and the false allure of their craven ideology, will be the basis for defeating them,” he says. “But no discussion of stamping out this threat would be complete without mentioning the government that gives terrorists all three — safe harbor, financial backing and the social standing needed for recruitment.

This is pretty much exactly how Joe Biden – in his own attempt to whitewash US involvement – described Trump’s Saudi hosts three years earlier. But Trump is not talking about IS’s Saudi backers; he is talking about Iran – the same Iran responsible, with its Syrian and Russian allies, for that fact that the IS flag is not today flying over Damascus.

It gets worse. Look at the following passage, just after he calls on “all nations of conscience to work together to isolate Iran.”

If we do not confront this deadly terror, we know what the future will bring—more suffering and despair. But if we act—if we leave this magnificent room unified and determined to do what it takes to destroy the terror that threatens the world—then there is no limit to the great future our citizens will have,” he said.

The birthplace of civilization is waiting to begin a new renaissance. Just imagine what tomorrow could bring. Glorious wonders of science, art, medicine and commerce to inspire humankind. Great cities built on the ruins of shattered towns. New jobs and industries that will lift up millions of people.

This is the language of genocide. Heroism and genocide have always gone hand-in-hand in the settler-colonial ideology internalized by the likes of Trump, for which ‘building great cities on the ruins of shattered towns’, be they Native American, Palestinian or, it seems, Iranian, has always been the highest accolade.

Some have accused Trump of making novice blunders during his first lumbering foray into the Middle Eastern maelstrom. But I think he knows exactly what he’s doing. He knows very well that the loosely-defined ‘ideology’ he speaks of as ‘spreading venom’ will be much more readily interpreted by his hosts as Shiism – the creed to which Iran actually subscribes – than as Wahhabism, the sectarian ideology behind IS, Al-Qaeda and the Saudi state.

And just to make clear what he is demanding be done to this ill-defined (but, nudge-wink, understood) enemy, he spells it out: “A better future is only possible if your nations drive out the terrorists and extremists. Drive. Them. Out… Drive them out of this Earth.

———-

qatar aka LHO..are the patsys..they are going to wear the heat for “terrorism”..

“Qatar hasn’t been playing ball with the US-approved, Saudi-led ‘isolate Iran’ program. Partly because Doha has made independence from Riyadh a hallmark of its foreign policy, but mostly because Qatar and Iran share the world’s largest natural gas field.”

it always seems to go back to resources..

401

Macron wins strong parliament majority

•June 20, 2017 • 2 Comments

http://beta.9news.com.au/world/2017/06/19/05/19/exit-polls-show-macron-wins-solid-majority

President Emmanuel Macron has won a commanding majority in France’s parliamentary election, sweeping aside traditional parties and securing a powerful mandate for pro-business reforms.

The result, based on official figures and pollster projections, redraws France’s political landscape, humiliating the Socialist and conservative parties that alternated in power for decades until Macron’s election in May.

Three pollsters projected that Macron’s Republic on the Move (LREM) and its Modem allies would win 355 to 365 seats in the 577-seat lower house, fewer than previously forecast.

They predicted the conservative Republicans and their allies would form the largest opposition bloc with 125 to 131 seats, while the Socialist Party, in power for the past five years, and its partners would secure 41 to 49 seats, their lowest ever in the postwar Fifth Republic.

Official figures with 90 seats still left to be decided show LREM has already won its majority.

“This is an opportunity for France. One year ago no one would have imagined such a political renewal,” Prime Minister Edouard Philippe said in a statement.

Voter turnout was projected to be a record low at about 42 per cent.

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the destruction of so called mainstream parties is complete..but macron is mainstream..the globalists won this game very nicely..voter turnout shows the apathy in france..le pen gets a seat..

“The result, based on official figures and pollster projections, redraws France’s political landscape, humiliating the Socialist and conservative parties that alternated in power for decades until Macron’s election in May.”

401

Amazon to buy Whole Foods for $13.7bn in all-cash deal

•June 20, 2017 • 2 Comments

https://www.rt.com/business/392574-amazon-whole-foods-billion-deal/

Amazon has announced plans to acquire leading US organic food grocer Whole Foods Market for $13.7 billion. The e-commerce giant is making a huge bet on physical stores and the business of food.

In a deal that is set to be sealed in the second half of the year, Amazon will pay $42 per share in cash for the upmarket grocery chain.

On Thursday, Whole Foods shares were halted at $32.77 in premarket trading, while Amazon’s shares were up 0.5 percent at $969.

Whole Foods’ co-founder and chief executive officer John Mackey will continue to run the chain with the headquarters of the company to remain in Austin, Texas, the companies said.

Whole Foods has been put under pressure by Jana Partners, one of the investors, and money manager Neuberger Berman. They criticized the company for poor performance and suggested the chain be sold.

“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” said Mackey in a statement.

This is Amazon’s second attempt to take over the grocery chain, according to a source familiar with the situation, as quoted by Bloomberg.

“Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage. I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get five-minute delivery,” said Michael Pachter, an analyst at Wedbush Securities Inc.

http://money.cnn.com/2017/06/18/technology/culture/jeff-bezos-bill-gates-richest/index.html

Bezos is now worth about $84.6 billion total, leaving him just $5 billion shy of overtaking Gates as the wealthiest person in the world.

He has a good shot. Bezos, 53, is focused on aggressively expanding Amazon, while Gates, 61, wants to give most of his money away.

Gates created the Giving Pledge with investing guru Warren Buffett — the fourth wealthiest person with $76.8 billion — in 2010.

———-

the rise of the amazon, technocratic, bezos conglomerate continues..this time with food..

Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage. I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get five-minute delivery,”

nearly the richest fool on the planet..

“Bezos is now worth about $84.6 billion total, leaving him just $5 billion shy of overtaking Gates as the wealthiest person in the world.”

401

Iran fires missiles against “terrorist bases” in East Syria

•June 20, 2017 • Leave a Comment

https://www.rt.com/news/392940-iran-fires-missiles-syria/

Iran’s Revolutionary Guards have launched a mid-range ballistic missile attack on terrorist positions in the Syrian province of Deir-ez Zor in retaliation for terrorist attacks in Tehran, Tasnim news agency reports.

The Iranian Revolutionary Guards have reportedly launched ground-to-ground mid-range ballistic missiles from the western Iranian provinces of Kermanshah and Kurdistan into the eastern Syrian province of Deir-ez Zor.

“The spilling of any innocent blood will not go unanswered,” Press TV cited a statement by the Revolutionary Guards as saying.

The Revolutionary Guards targeted the bases and headquarters of terrorists that Iran believes to be responsible for the Tehran attacks. The missiles have reportedly killed large numbers of terrorists and inflicted significant material damage, Tasnim said.

The Revolutionary Guards used Zulfiqar solid fuel ballistic missiles, which have an effective range of 700 kilometers, according to Iran’s Fars news agency.

http://www.independent.co.uk/news/world/middle-east/syria-war-latest-us-shoots-down-regime-assad-fighter-jet-bombed-attacked-coalition-sdf-isis-raqqa-a7796511.html

American forces have shot down a Syrian government fighter jet accused of attacking Kurdish-led troops, prompting a furious response from Damascus as tensions increase.

US Central Command said the SU-22 dropped bombs near the Syrian Democratic Forces (SDF), who are being supported by the US-led coalition as they advance on the terrorist stronghold of Raqqa.

“In accordance with rules of engagement and in collective self-defence of Coalition partnered forces, it was immediately shot down by a US F/A-18E Super Hornet,” a statement said.

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we have escalation..iran using ballistic missiles for the first time in 30 years and the usa has shot down another syrian plane..whilst they are illegally on sovereign soil and illegally invading a country they also illegally shot this jet down..but meh?

401

Musk’s goals for Tesla will require billions more in capital

•June 20, 2017 • 7 Comments

https://www.forbes.com/sites/alanohnsman/2017/06/08/elon-musks-goals-for-tesla-will-require-billions-more-in-capital-investors-cheer/#7a50b9839d80

Once again the question of ‘what’s the limit?’ when it comes to Tesla’s valuation and ambitions remains unanswered. In the days since Elon Musk talked about the clean transportation and energy company’s future at its annual shareholder meeting, the stock rocketed nearly 5 percent percent to a new record.

Those exciting plans – an electric semi-truck; a new plant to make the Model Y crossover, built from a completely new platform; thousands more company-owned stores and service centers; a vastly larger Supercharger network; and up to 20 Gigafactories – mean tens of billions of dollars in new investment will be needed by a company already saddled with pricey capital expenditures.

Bullish shareholders and a number of equity analysts remain upbeat on Tesla’s growth potential, so much so that there seems to be little concern the company’s endless need for funds keeps pushing any shot at profitability farther into the future.

“From its beginning Tesla has always been seeking more capital, so much so it’s been on the razor’s edge at times,” Ed Kim, a long-time industry analyst for AutoPacific in Tustin, California, told Forbes. “That’s not going to stop. In fact, it looks like it’s going to continue to be integral to the company culture.”

Tesla closed at $370 on June 8, its highest ever, and capped a 73 percent gain since the start of the year. Its market capitalization stands at nearly $62 billion, well ahead of considerably larger General Motors or Ford on that basis. Those century-old automakers had global vehicle sales of more than 9 million units and 6.6 million units, respectively, in 2016, while Tesla delivered fewer than 80,000.

“Its valuation is crazy high because investors see so much potential in Tesla. One of the ways to continue to keep that valuation high is to keep talking about the future and unveil ever more grandiose plans,” Kim said. “It basically keeps pushing the message: “We’re going big. We practically own the future.”

The stock’s spike has also once again ginned up activity by short investors, a common target of Musk’s wrath. Currently, Tesla is the most shorted stock, according to a report by S3 Partners. “These guys want us to die so bad they can taste it,” he said in a Tweet on Thursday.

Tesla’s wild ride from Silicon Valley garage startup in the early 2000s to a global benchmark for electric cars has been powered as much by the billions of dollars raised in stock and debt sales as Musk’s intoxicating vision for the future.

It’s also approaching an important milestone with the release of the $35,000 Model 3 sedan, Tesla’s first widely affordable electric car, in about a month. That product has been a central goal for Musk since he laid out Tesla’s Master Plan in 2006.

Yet at both the annual meeting in Mountain View, California, this week, and on Tesla’s earnings call in May, he seemed to temper expectations for the car. He again reminded listeners that the Model S will always be a much nicer Tesla, and noted that order configurations for Model 3, at least initially, will be limited to color and wheel size.

He also noted that the Model Y, coming in two to three years, will be better. “I am really excited about Model Y,” Musk said this week. “We are aiming for that to hit the roads in 2019, approximately. And probably the demand for Model Y will exceed the demand for Model 3.”

He also talked up the Tesla Semi that will be shown in September, without detailing its pricing, production timing and range per charge.

“A lot of people don’t think you can do a heavy-duty long-range truck that’s electric, but we are confident that this can be done,” Musk said. However, the prototype has been shown “to a number of the organizations that buy heavy-duty trucks and they all love it. They just want to know how many can they buy and how soon.”

The biggest expense on Musk’s to-do list for Tesla is a plan to eventually build as many as 20 Gigafactories to make lithium-ion batteries and other components. The first one, a sprawling $5 billion facility near Reno, Nevada, though partially completed is supplying battery packs.

“In terms of how many factories are in the works, we’re really giving serious consideration to three factory locations right now, but we’re going to try to keep our powder dry until we’re confident of the locations and the timing,” Musk told a rapt audience. “Ultimately, there’s at least 10 of these around the world and maybe as much as 20.”

Barring setbacks, Musk wants those plants to be revolutionary. He’s talked of a fully robotic production system that will make Tesla a manufacturing gold standard in terms quality and efficiency. In advance of that, he also intends to have the companies factories building vehicles at a rate of one million per year by 2020 – up from about 100,000 units of production this year.

Few CEOs can excite customers and shareholders about the future in quite the way Musk does, and it’s clear he understands the power of his brand.

———

elon seems to have an endless supply of government money..

“Its valuation is crazy high because investors see so much potential in Tesla. One of the ways to continue to keep that valuation high is to keep talking about the future and unveil ever more grandiose plans,”

grandiose indeed..

“tens of billions of dollars in new investment will be needed by a company already saddled with pricey capital expenditures.”

where is that coming from?

401

 
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