Markets dragged down by credit crisis

Friday, August 10, 2007

Global stock markets fell today, in a mass sell-off stemming from the sub-prime mortgage crisis in the United States. The Dow Jones Industrial Average rebounded late in the day after falling more than 250 points, ending the day down about 31 points. The UK’s FTSE-100 index fell 232.90 points to 6038.30, and Japan’s Nikkei 225 fell 406.51 points to 16764.09.

Central banks across the world are injecting funds into their banking systems to add liquidity, fearing that many financial firms with subprime ties will be insolvent. Yesterday, the U.S. Federal Reserve transferred US$24 billion to temporary reserves, following the European Central Bank, which authorized a record €83.6 billion addition to its banks, its biggest cash infusion ever. On Friday, the Fed entered into a $38 billion repurchase agreement of mortgage-backed securities, easing stockholder worries. Also on Friday, the Bank of Japan injected ¥1 trillion into Japan’s financial system.

The Federal Reserve met this week, but decided to maintain its target rate of 5.25%, although on Friday the federal funds rate was hovering around 6%, indicating a drop in liquidity.

The volatile week began last Friday with Bear Stearns tumbling as a result from its complete loss of two major hedge funds worth more than $1.5 billion. The hedge funds had been dangerously exposed to the massive sub-prime mortgage failure, and the company announced it was unable to return any money to investors.

Washington Mutual, and Countrywide Financial, both very large U.S. home loan lenders, saw shares fall. Countrywide Financial made a statement this week, saying they will be forced to retain a greater proportion of mortgage. American Home Mortgage Investment Corp, another large lender, recently filed for bankruptcy. The U.S. housing market has been declining for more than two years after the Federal Reserve raised interest rates 17 times. Now, lenders are in a quagmire from millions of people who are unable to repay loans after taking adjustable rate mortgages, teaser rates, interest-only mortgages, or piggyback rates.

Jim Cramer, of CNBC’s Mad Money, remarked that as many as seven million people will lose their homes from bad mortgages. Last Friday, Cramer went on a tirade on CNBC’s Street Signs, saying that the “Fed was asleep” and called for them to lower rates immediately.

Asian and European markets have become increasingly entangled in the subprime mortgage crisis in the U.S. Deutsche Bank of Germany lost almost $3.5 billion in share value, forcing the government to organize a bail-out. France’s largest bank, BNP Paribas SA, halted withdrawals from three large investment funds which were crippled by sub-prime exposure.

Thursday, April 22, 2010

Belgian prime minister Yves Leterme has offered to resign amid a political dispute, the press office of the Belgian parliament reported on Thursday.

The Belgian king, King Albert II, has not yet accepted the prime minister’s offer. He and Leterme met on Thursday’s afternoon, the office said. The king said that the resulting political turbulence from the resignation “seriously threatens” the country’s standing in the European Union.

“[He] had no other choice than to inform us that he would go to the king immediately to tender the government’s resignation,” said Belgium’s health minister, Laurette Onkelinx.

The Belgian palace commented on the issue in a written statement. “The king and the prime minister jointly underlined that […] a political crisis would be inopportune and would seriously damage both the economic and social well-being of the citizens and the role of Belgium in Europe.”

Leterme also resigned as prime minister in late 2008 over a banking scandal. He returned to office last November when former PM Herman van Rompuy gave up the post to become the first, full-time head of the European Union.

This latest resignation is a fallout of Belgium’s long-term power struggle between the country’s French-speaking Walloons and Flemish-speaking majority.

The latest disagreement centers on special rights for Walloons living near Brussels; specifically, the location of electoral boundaries around the capital. A key coalition member, the Flemish liberal Open VLD Party, pulled out of the government, frustrated over the failure to resolve the dispute. Party chairman Alexander De Croo said that”[w]e have not agreed on a negotiated solution and therefore Open VLD no longer has confidence in the government.”

Without the VLD, the other four government parties have 76 of 150 lower house seats in the parliament, although governing with such a small majority would be hard, Al Jazeera says.

Thursday, June 19, 2008

Buffalo, New York —Judge Justice Christopher Burns of the New York State Supreme Court has ordered a halt to an emergency demolition on a 19th century stable and livery on 428-430 Jersey Street in Buffalo, New York that partially collapsed on Wednesday June 11, initially causing at least 15 homes to be evacuated. At least two homes remain evacuated.

Burns orders that both the city and the group Save The Livery (www.savethelivery.com) have to come to an agreement on what to do with the building, and try to work out ways of saving at least some portions if it including the facade, side walls and a lift tower. Save The Livery is comprised of concerned area residents who have grown to love the building’s historic and unique character. On June 14, they won a temporary restraining order to stop demolition. The court ruled that the city was only allowed to remove material in immediate danger to residents and pedestrians, but stated that the demolition could only be performed with “hand tools.” The court also ordered that any rubble which had fallen into neighboring yards when the building collapsed, to be removed.

“It is in the interest of the city to have a safe environment–but also important to maintain a sense of historical preservation,” stated Burns in his ruling. Burns has given the sides until tomorrow (Friday June 20) to come to an agreement and has ordered both parties to return to court at 9:30 a.m. (eastern time) “sharp.” Activists of Save The Livery urge supporters of the stable to “fill the courtroom” to show “continued and ongoing support.” The hearing is scheduled to take place at 25 Delaware Avenue in the Supreme Court building, 3rd Floor, trial part 19.

Currently the building is owned by Bob Freudenheim who has several building violations against him because of the buildings poor condition. He has received at least five violations in three months and residents who live near the building state that Freudenheim should be “100% responsible” for his actions. Many are afraid that if the building is demolished, Freudenheim’s charges of neglect will be abolished.

On June 17, developer and CEO of Savarino Companies, Sam Savarino was at the site of the stable, discussing the building with residents and preservationists. In 2006, Savarino proposed and planned The Elmwood Village Hotel, a ‘botique’ hotel on the Southeast corner of Elmwood and Forest Avenues. The project was later withdrawn after residents filed a lawsuit against Savarino and the city. Wikinews extensively covered the story, and contacted Savarino for his professional opinion on the building.

“[I would] love to see it preserved. I was there to see if there was anything we could do to help, to see if anything can be salvaged. I just want to see the right thing happen, and so does the city,” stated Savarino to Wikinews who added that he was allowed inside the building for a brief period.

“The side walls are beyond repair. The roof has rotted and it could come down at any time,” added Savarino who also said that the building “below the second floor appears to be stable.” He also states that the back wall of the building, which borders several homes, appears to be intact.

“Eliminating the back wall could be a problem for the neighbors. It is not unreasonable to leave at least 12 feet” of the back wall standing, added Savarino.

Savarino did not say if he was interested in buying the property, but did state, “I am sure there are a couple of people interested” in buying the property. On Thursday, Buffalo News reported that a “businessman” might be interested in purchasing the property, though Wikinews is not able to independently confirm the report. Savarino says that with the property still slated for emergency demolition, a potential buyer could face tax fees of nearly US$300,000.

Freudenheim gave the city permission to demolish the building on Thursday June 12 during an emergency Preservation Board meeting, because he would not be “rehabilitating the building anytime soon.” Freudenheim, along with his wife Nina, were part-owners of the Hotel Lenox at 140 North Street in Buffalo and were advocates to stop the Elmwood Village Hotel. They also financially supported a lawsuit in an attempt to stop the hotel from being built. Though it is not known exactly how long Freudenheim has owned the stable, Wikinews has learned that he was the owner while fighting to stop the hotel from being built. Residents say that he has been the owner for at least 22 years.

The building was first owned by a company called White Bros. and was used as a stable for a farm which once covered the land around the building for several blocks. The Buffalo Fire Department believes the building was built around 1814, while the city property database states it was built in 1870. Servants and workers of the farm were housed inside resident quarters situated at the rear of the building on what is now Summer Street, but are now cottages where area residents currently reside. Some date as far back as 1829.

At about 1950, the stable was converted into an automobile body shop and gasoline station.A property record search showed that in 1950 at least four fuel storage tanks were installed on the property. Two are listed as 550 square feet while the other two are 2,000 square feet. All of the tanks are designated as a TK4, which New York State says is used for “below ground horizontal bulk fuel storage.” The cost of installing a tank of that nature according to the state, at that time, included the tank itself, “excavation and backfill,” but did not include “the piping, ballast, or hold-down slab orring.” It is not known if the tanks are still on the property, but residents are concerned the city was not taking the precautions to find out.

Sunday, February 17, 2008

Witnesses have reported that at least 80 people have died in a bombing in Afghanistan. The bombing took place in the Kandahar city area of the country, with early reports saying that took place in the Western areas of the city, which is in the South of Afghanistan. The Indonesia based news agency, Antara News has reported that the bombing took place during a dog fighting match.

A spokesman for the Interior Ministry of Afghanistan has confirmed the reports by saying that “there was an explosion in Kandahar this morning,” and that “there are a number of people killed and injured.” He added that “killed dozens and wounded dozens more,” and that he “can’t give an exact number [of injuries and deaths], but the number is very high.” He also said that “all the police are there [at the scene of the bombing] and they are evacuating the injured and the dead.”

A senior police official has been quoted as saying that “We have 56 people martyred and about 40 others wounded.” Reports from witnesses have also stated that a famous former commander was killed in the blast.

The Interior Ministry of Afghanistan has said that they are not sure whether the blast was a suicide bomb, although they have made clear that they are sure it is a bombing.

Tuesday, January 1, 2008

Today at midnight, the Republic of Cyprus and the Republic of Malta, both small island states in the Mediterranean and former British colonies, adopted the euro as their official currency; less than four years after their accession to the European Union. Because Cyprus and Malta are in different time zones, Cyprus adopted the euro one hour before Malta did the same. In both countries the euro was welcomed with outdoor celebrations, including a fireworks display in Malta’s capital Valletta. According to the BBC Cypriot Finance Minister Michalis Sarris has said the euro “will benefit consumers and businesses alike because of the eurozone’s low inflation, low interest rates and large market.”

The BBC reports that Cypriot and Maltese leaders “made symbolic withdrawals of euros from cash machines just minutes into the New Year.” TIME reports that Maltese Prime Minister Lawrence Gonzi had to wait a little while before getting his hands on the new currency because “an automated teller machine did not work when Gonzi tried to withdraw euros, and he was obliged to use a different ATM.”

The Cypriot pound (CYP) and the Maltese lira (MTL) will remain in use during a dual circulation period that will last until the end of this month, at which point they will cease to be legal tender. However, it will still be possible to exchange them for Euro free of charge after the end of this period. Commercial banks in Cyprus will exchange Cypriot pounds for Euro until 30 June, but only for amounts up to CYP 1000 per customer and per transaction in banknotes and up to CYP 5O in coins. The Central Bank of Cyprus will exchange coins until the end of 2009 and banknotes until the end of 2017. Maltese commercial banks will exchange Maltese lira for Euro until the end of March, with a limit for non-customers of MTL 250, whereas the Central Bank of Malta will exchange coins until 1 February 2010 and banknotes until 1 February 2018.

The single currency has replaced the Cypriot pound and the Maltese lira at a rate of one euro to 0.585274 Cypriot pound and 0.4293 to the Maltese lira, or 1.71 euro per Cypriot pound and 2.33 per Maltese lira. This conversion rate had been fixed on 10 July 2007 by Ecofin, the council comprising the finance ministers of the EU Member States.

Cyprus and Malta are the 14th and the 15th country to join the Eurozone, which already includes Austria, Belgium, the Netherlands, Finland, France, Germany, Ireland, Italy, Luxembourg, Portugal, Spain, Greece and Slovenia. All EU Member States are required to join the Eurozone once certain conditions are fulfilled, except Denmark and the United Kingdom which have negotiated a so-called opt-out that allows them not to adopt the single currency.

The Turkish Republic of Northern Cyprus, the de facto independent Turkish-controlled area in the north of Cyprus, will not join the Eurozone. Northern Cyprus is not part of the European Union and is recognised only by Turkey. As a result, the Turkish lira will remain the official currency in the north of the island; however, TIME reports that “many Turkish Cypriot merchants will also accept euros along with Turkish lira.” Cypriot Euro coins are inscribed in both Greek and Turkish.

The euro will also be legal tender in the Sovereign Base Areas, British military bases in Cyprus.

The national sides of the Cypriot Euro coins feature three separate designs for the three series of coins. The 1, 2 and 5-cent coins feature the mouflon, or wild sheep, the 10, 20 and 50-cent coins feature the Kyrenia ship, the wreck of a 4th century BC Greek merchant ship discovered in 1967 and salvaged closed to Kyrenia, and the €1 and €2 coins feature the Idol of Pomos, a prehistoric sculpture from the village of Pomos, three national symbols of Cyprus. The designs were jointly created by Tatiana Soteropoulos and Erik Maell.

The Maltese euro coins’ national sides will also feature national motifs. The 1, 2 and 5-cent coins will feature the altar of the Mnajdra temple grouping, a complex of three Neolithic temples on the southern coast of Malta and one of the oldest free-standing temple groupings in the world, the 10, 20 and 50-cent coins will feature the Coat of Arms of Malta, and the €1 and €2 coins will bear the Maltese cross, a symbol associated with an order of Christian warriors known as the Knights Hospitaller or Knights of Malta, which was based on Malta for more than 250 years after they had been given the islands by Charles V, Holy Roman Emperor. The designs of Maltese engraver Noel Galea Bason were selected after two rounds of public consultations in which people were invited to vote via SMS.

Both Cyprus and Malta have taken a number of steps to address fears of undue price rises. 7,130 Cypriot companies have subscribed to a Fair Pricing Code launched by the authorities and the Cypriot government urged companies to round their prices down. In Malta, the FAIR initiative, a fair pricing scheme, was put in place in January 2007. This scheme, which provides for administrative fines for those failing to respect their commitment, now involves 80% of all retail outlets. Malta, according to the BBC, has also signed 12 price stabilisation agreements with importers, which will last until March 2008.

In both countries, the authorities will monitor retailers to ensure they do not exploit the changeover for unfair gain by rounding up their prices, contributing to inflation.

Thursday, May 31, 2007

According to The Japan Times, the 20-year-old Japanese delegate Riyo Mori was crowned as the 56th Miss Universe, in a ceremony held at Mexico City on May 28 .

Riyo, the new Miss Universe titleholder, is from Shizuoka, Japan. She had stayed in Canada to study ballet while in high-school.After Riyo returned to her country, she became to an instructor of a dance school.

Riyo Mori achieved the brilliant feat of winning this beauty contest as Japanese after 48 years’ absence.Incidentally, preceded runner-up is Kurara Chibana.

Saturday, March 24, 2007

CEO of the Ontario Lottery and Gaming Corporation, Corp., Duncan Brown, has stepped down after recent allegations that lottery retailers are winning more than customers.

“By mutual agreement, Duncan Brown and the Board of OLG have decided a change of leadership is appropriate,” the lottery corporation said on Friday. “Brown has stepped down from his post as CEO.”

Before Brown joined OLG in 2004 he was CEO of the Alcohol and Gaming Commission of Ontario. He has worked in the lotto industry since the 1970s.

A new CEO will be chosen by the Board in the coming months, the Interim CEO will be chosen in a few days.

This month OLG recalled over 1,000,000 scratch and win tickets. The “Super Bingo” tickets were also removed after complaints that one could see which were the winning tickets.

Ontario Ombudsman André Marin will conduct an investigation into allegations that lottery retailers are winning more than customers.

“They’re faced with a wall of silence,” Marin said. “The OLG essentially turns against them and instead of investigating the complaint, investigates the complainant.”

Marin will release the report on Monday.

Saturday, August 5, 2006

Three of Sweden’s ten nuclear reactors have been shut down due to safety concerns following an incident last week at the Forsmark Nuclear Power Plant, in which the reactor cooling systems failed. The reactor has since been shut down there. After the incident, the Swedish Nuclear Power Inspectorate, SKI asked all the nuclear power plants to demonstrate that the same failure could not happen in them. On Wednesday, two more reactors at Oskarshamn were shut down after the operator said their safety could not be guaranteed.

Last week’s incident at the Forsmark plant was triggered by a short circuit that cut power to the reactor cooling system. Two of the four backup generators also failed to start, but the remaining two worked and were sufficient to meet the plant’s needs. Greenpeace reports that the fault in the backup power systems were traced to new equipment installed in 1993.

The spokesman of the Swedish Nuclear Power Inspectorate Anders Bredfell denied that there was any danger of a meltdown, adding that there was also a backup gas turbine to power the cooling system in an emergency.

However, Lars-Olov Höglund, who was responsible for the nuclear plant Forsmark for many years, said the incident was the most dangerous one since Chernobyl and Three Mile island, and that a meltdown was avoided only by pure luck. His views have however been questioned as he is involved in litigation with the Swedish nuclear industry and is known as an outspoken nuclear critic. Researchers at the Royal Institute of Technology as well as the personnel at the power plant were critical of Höglunds’ view.

Speaking to BBC News, SKI spokesman Anders Bredfell said that the International Atomic Energy Agency (IAEA) was informed of the incident as required and that the incident classes as a ‘2’ in the 0-7 scale used by the IAEA to assess the severity of the incident.

Another reactor in Forsmark and a fifth at Ringhals nuclear power plant have been offline due to planned maintenance work. With five of its ten reactors down, Sweden’s power generation capacity is down by almost a fifth.

The environmental group Greenpeace called on the government to shut down all reactors and probe whether the fault was a generic one. The Green Party has called for an independent investigation of the incident. Sweden is scheduled to retire all its nuclear power plants in the next few decades, as decided by a referendum in 1980.