Friday, July 15, 2011

On Tuesday, the Euro fell to a new record low in relation to the Swiss Franc, and to multi-month lows against the U.S. Dollar and Japanese yen; all considered by investors to be safe currencies during times of economic turmoil.

The Wall Street Journal reported earlier that recent comments from the newly installed head of the International Monetary Fund, France’s Christine Lagarde, resulted in a sell-off of the Euro. At a roundtable discussion in Washington, Lagarde noted that the IMF had not yet reached discussion of terms and conditions of a second Greek bailout plan. In fact, a representative from the IMF is currently meeting with Eurozone policymakers to draft such a new proposal. The yield differential between Italian bonds and German bonds has spread to more than 300 basis points, something not seen in over a decade and evidence of investors’ concern.

Adding to the Euro’s woes is the upcoming release of the bank stress tests on Friday. The European Bankers Association said that they expect the data release to shed new light on the Eurozone’s banking situation. Representatives of several of the Eurozone’s governments, including Germany, have requested that the association consider releasing fewer specific details for fear that investor panic will ensue. The inadequacy of the capitalization rates has been an issue with the European Central Bank, whose president recently called upon Eurozone banks to make every effort to put their balance sheets in order.

For the time being at least, an unsubstantiated rumor reported by the Wall Street Journal states that the Eurozone’s central banks’ purchase of periphery debt has helped to quell the downward momentum of the Euro.

Tuesday, October 7, 2008

The Icelandic internet bank, Icesave, has suspended all 300,000 of its UK customer accounts, leaving account holders in the United Kingdom unable to withdraw or deposit any funds. A message on its website posted this morning states:

“We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly.”

The internet bank, owned by the Icelandic bank, Landsbanki (Landsbankinn), which was recently nationalised in an attempt to rescue it, has been hit by the global financial crisis. Reports from the United Kingdom suggest that the traders and city are preparing for the parent company to be declared insolvent, leaving customers to recover their monies through a financial compensation scheme being backed by the Icelandic Government. The plan will cover the first € 20,887 (Approx £16,300 / $28,720), the remainder of the customers funds being recovered through the UK’s own financial compensation system.

Following the decision to nationalise Landsbanki, the Icelandic Prime Minister, Geir Haarde, who introduced and signed the emergency legislation into law, stated:

In describing and explaining its actions in nationalising the bank, the Icelandic Financial Supervisory Authority issued this brief statement:

In response to the deepening world financial situation, the Dutch government has this afternoon increased its savers protection from €38,000 to €80,000 effective immediately, to help secure the financial status of its savers within Holland. Icesave also has a Dutch branch, icesave.nl – their website was unreachable at the time of this article.

Saturday, November 7, 2020

On Wednesday, the Tuskish government declared they were officially ending the search of survivors of the earthquake in the Aegean Sea. Reports said at least 116 people died due to this earthquake, while the number of casualties rose to at least 1,035 in Turkey and about 19 in Greece.

On the Greek island of Samos, two people died when a wall collapsed. The disaster caused buildings on Samos and in the west coast city of Izmir, Turkey, to collapse or be severely damaged. The earthquake also caused a “mini tsunami” to flood some streets of Samos and Izmir.

The earthquake occurred on Friday with its epicentre in the Aegean Sea near Samos. Turkey’s Disaster and Emergency Management Presidency reported the magnitude of the earthquake was 6.6 and, as of Wednesday, 1885 aftershocks had occurred since the earthquake. The US Geological Survey reported it was of 7.0 magnitude.

Local officials said on Saturday, about 20 buildings collapsed. Early reports suggested police and people used simple tools such as chainsaws to rescue people who were trapped.

Turkey and Greece had earlier had poor relations over disputed resources in the Mediterranean, but the leaders of the two countries spoke by telephone on Friday night, and publicly expressed their willingness to help each other.

April 1, 2005

Ebner Anivel Rivera-Paz, a leader of the vicious Mara Salvatruchas, nicknamed the MS-13 gang, issued orders from his prison cell for his followers to teach the American “Minutemen” volunteers a lesson when they begin patrolling the Mexican border today.

MS-13 gang members, considered by some to be America’s most violent gang, is accused of engaging in such acts as cutting off the testicles of their enemies and feeding them to their dogs, and cutting the heads off their opponents to play soccer with. However, such allegations of brutality don’t seem to frighten the “Minutemen”, a group of more than 1,000 volunteers planning to patrol the Arizona-Mexico border beginning April 1st. They have been called vigilantes by President Bush and Mexican President Vicente Fox. They sometimes sarcastically refer to themselves as “undocumented border patrol agents”. James Gilchrist, a Vietnam veteran and spokesman for the Minutemen, in response to the MS-13 threat said; “We’re not worried because half of our recruits are retired trained combat soldiers… they [MS-13] are just a bunch of punks.”

The MS-13 gang now has about 20,000 members nationwide. The US Immigration and Customs Enforcement, nicknamed ICE, began to focus on the gang with an initiative called “Operation Community Shield”. The very existence of MS-13 is considered by the “Conservative Voice” to be a direct consequence of the USA government’s 1980’s policies in Central America; “the chickens are coming home to roost. Its MS-13 members are the sons of immigrants from El Salvador and other Central American countries that were forced to flee because of the CIA instigated war during the Reagan Administration that completely destroyed the physical, economic, social, religious and cultural infrastructure of the region. MS-13 was founded in Los Angeles by the offspring of the immigrants for protection.

Sunday, March 22, 2009

After an early morning fire began, four out of the nine people living at the Riverview Individual Residential Alternative group home located in Wells, New York were killed by the blaze. The Sunmount Developmental Disabilities Services Office, which supervises the home, told the media that the fire started at approximately 5:30 AM Eastern Daylight Time. Two staff members were at the home at the time, who safely evacuated four of the five survivors.

The names of the residents killed in the fire were not able to be released due to New York’s Mental Hygiene Law, but are able to be identified as two adult men, aged 32 and 52, and two adult women, aged 43 and 60. A 71-year-old male was injured in the fire, and was taken to a hospital in Utica, a nearby city. The other four residents have been relocated to an unnamed group home. Both staff members are also being examined at the hospital.

“On behalf of all New Yorkers, I wish to extend my heartfelt condolences to the families, loved ones and friends of the four victims and to continue to pray for the full recovery of those five people and two staff members who survived this incident. I also want to express my thanks and appreciation for the first responders and volunteers who worked swiftly and diligently to respond to this tragedy,” David Patterson, the governor of New York, said to the media.

The exact cause of the fire has yet to be determined. However, the New York Civil Liberties Union stated that “the blaze appears to have been an electrical fire and the sprinkler system was knocked out immediately.” They also called for “an immediate investigation into the causes of and contributing factors of the fire.”

The New York State Department of State Office of Fire Prevention and Control is currently investigating the causes of the blaze, with help from New York State Police Bureau of Criminal Investigation and the New York State Commission on Quality of Care and Advocacy for Persons with Disabilities.

Friday, January 13, 2017

Yesterday afternoon United States President Barack Obama surprised his two-term vice president Joe Biden in the White House State Dining Room with the country’s highest civilian honor, the Presidential Medal of Freedom with distinction.

In a ceremony described by the press as highly emotional, Obama cited his choice of Biden as a running mate as one of the best of his career and described their few arguments as the sort that brothers would have and Biden himself as “a lion of American history.”

This made only the fourth time in U.S. history that this modified form, the Medal of Freedom with distinction, has been awarded. Biden joined Pope John Paul II, then-former President Ronald Reagan, and former General and Secretary of State Colin Powell.

Early during the ceremony, Obama noted comically “this also gives the Internet one last chance to talk about our ‘bromance.'” The hashtag “#BROTUS,” a play on the acronym for President of the United States (POTUS), was a common sight on Twitter in 2016.

Sunday, July 4, 2021

On Thursday, 130 countries and jurisdictions in the 139-member Organisation for Economic Co-operation and Development (OECD) agreed to support an overhaul to the international taxation system that would introduce a global minimum corporate tax rate, committing most of the world’s economies to a two-pillar “solution”.

The states which agreed to the plan’s key components included regional divisions such as Gibraltar, Hong Kong and Montserrat, tax havens according to the Associated Press (AP) Bermuda and the Cayman Islands and all Group of Twenty (G20) countries, according to an OECD list, but not Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria, Sri Lanka and Saint Vincent and the Grenadines. Peru also abstained, but due to its lack of government, reported The Guardian.

Those that have signed represent over 90% of global gross domestic product (GDP). A press release by the OECD called the framework the result of “negotiations coordinated by the OECD for much of the last decade” and criticises the “century-old international tax system” for being “no longer fit for purpose”. The plan was backed by United States president Joe Biden according to multiple sources, and comes after a similar Group of Seven deal on international taxation agreed on June 5.

The plan, officially the “OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting”, adopted a pillared approach. An implementation plan is to be finalised by October.

If implemented, the first would force multinational enterprises (MNEs) with global turnover exceeding €20 billion and profitability above 10% to reallocate tax on over USD100 billion in profit from their home markets to each market jurisdiction it derived at least one million or 250 thousand euros from, depending on its GDP. An OECD statement confirmed the threshold for affected MNEs under pillar one may change to those exceeding ten billion euros in turnover, dependent on the results of a review to be conducted in seven years’ time.

The second pillar consists of two “Global anti-Base Erosion Rules” allocating top-up tax of a minimum of 15%, and one treaty-based “Subject to Tax Rule” to be made effective in 2023.

The effects of both pillars, though dependent on the plan’s final framework, was estimated by the OECD to increase global corporate income tax (CIT) reserves by between 1.9 and 3.2%, or 50 and 80 billion USD. If including the existing US tax on global intangible low-taxed income, the growth of CIT reserves would be between 2.3 and 4%, or 56 and 102 billion USD. This would also protect against tax avoidance practices the OECD says costs countries between 100 and 240 billion USD in lost revenue per year, according to the AP.

The OECD also projects a “relatively small” negative effect on investment and activity equivalent to 0.1% of GDP in the medium- to long-term. Other concerns cited include the potential governments may lose the ability to use tax incentives for policy objectives, as well as the cost of ensuring compliance.

Countries opposed include Hungary and Ireland who have, according to Politico, sought lower rates to attract foreign direct investment, and have, in addition to Estonia according to the BBC, at least some corporate rates below the proposed floor of 15%. The Irish and Hungarian headline corporate rates stand at 12.5 and 9%, respectively, according to The Guardian, with Ireland standing to lose over two billion euros in the next four years according to Raidió Teilifís Éireann (RTÉ). A PricewaterhouseCoopers tax summary mentions a tax exemption on undistributed corporate funds in Estonia, in addition to instances where a 14% rate is applicable.

OECD secretary general Mathias Cormann said in the press release “this historic package will ensure that large multinational companies pay their fair share of tax everywhere”, adding while it “does not eliminate tax competition […] it does set multilaterally agreed limitations”.

Biden said the deal means the world is in “striking distance of full global agreement to halt the race to the bottom”, which US treasury secretary Janet Yellen described as a race “no nation” has won, according to The Guardian. Finance minister for France Bruno Le Maire called it the “most important international tax agreement in a century”, according to the BBC.

According to RTÉ, finance minister for Ireland Paschal Donohoe said while he “expressed Ireland’s reservation”, he remains “committed to the process” and assures the global community “Ireland will continue to play our part in reaching a comprehensive and, indeed, historic agreement”. According to Reuters, on June 9, Hungarian prime minister Viktor Orbán called the proposal “absurd”, and insisted the country’s low rates “is not meant to attract certain companies to declare their taxes here”, nor makes it “a tax haven”.

Venice, Italy is to host G20 finance ministers and central bank governors at a “G20 High-Level Tax Symposium” on July 9, according to the Italian Ministry of Economy and Finance.