Institutional Investors conference, „Value Intelligence“, discussed strategies for the future

The biggest conference in Germany for institutional investors, „Value Intelligence“, happened in Munich this week. In this conference the institutional investors inform themselves about the possibilities to make revenue in the future and form their new strategies of their investments. Part of the attendees of the value intelligence are assecurances, banks, foundations, pensionfonds, family offices and parts of the press. Referents on this event were beside others Prof. Bruce Greenwald, Columbia Business School, New York and James Montier, GMO, London. Prof. Bruce Greenwald who former predicted that the Eurozone fall into pieces said, the Euro-Zone will exists in the future. But it would be an advantage for the poorer south states to divide from the richer north. Mr Montier doesn’t see any problem that the state adopt the debts of the crisis because the state can print money. So the state has not the same constraints like companies. The state could form it’s monetary policy more freely than the private economy. And therefore the national debt will be no problem for the economy. Systemic risk only exists in the private sector. And Prof. Greenwald confirms that the debit for the creditors have been steadily decreased for the last years. For the states the decline of the debit was much more. So Japan, where the net debt is about 150% of the GDP has with a nominal rate of 0,5%, respectively 1% rate load effective, a real rate load of 1,5% of GDP. For Montier is the state debt of Japan no problem, as long the interest rate stay lowly. The national debt is more the result of the crisis than the crisis is the result of the national debt. The quantitative easing is an instrument to control the rates. It is not inevitable that quantitave easing produce inflation. In the sight of the institutional investors the central banks don’t print money. Quantitave Easing is a big programm to change long term national debt to short term reserves at the central banks and this is no process that generates inflation. The biggest problem is that there are countries which protect their industry sector. If they conserve their structure too aggressively they could face deflation and slowing growth. They are endeavoring to export their own problems and produce more financial inequalitiy.

But the central banks can steer the rates to any level they want. If investors sell their treasuries the central bank buy them. The rate does not matter about that. They only have to obey the currency.

That is a nice new doctrine. It may be right from the vantage point of the present of the instituional investors. But what about Greece, Ukraine, Italy or the USA. What about the bankrupt Cities like Detroit and states like California, the different cities and administrative districts in Amerika and Europe which are under rescue shield?

Apple deletes AMS out of the supply chain of it’s I Phones and Apple watches

Until now AMS delivered the NFC booster (Near-Field-Communication) for Apple I Phones and 12 mio Apple watches. The NFC is high tech with future potential, which is used for paying bills by Apple Pay. If you want to pay a bill, you have to move the I Phone or the Apple watch over a terminal which trigger the payment. UBS say, that AMS made 0,04 SFr per device and estimates that AMS delivered NFC boosters for 222 mio I Phones and 12 mio Apple watches. In an estimation Natixis say, that AMS wanted to make a third of it’s revenue with NFC boosters. Apple gave the new order to the Netherland Company NXP, which delivers the antenna for the Apple devices. NXP increases the efficiency of it’s antenna. With it’s new concept NXP could convince Apple. AMS which developed a similiar concept with STMicroelectronics lost the race and it’s orders.

USA changed the data storage law

NSA Spy Program allowed the NSA of USA to observe data traffic of humans, companies and other institutions, NGO’s or GO’s. Target, so the USA, is to find terror suspects which are planning terror attacks. So, the USA said, it will be possible to prevent deadly attacks on the people, institutions and companies. To make this perfect USA installed a fleet of airplanes which observe the intercontinental internet traffic.

Now USA had failed to meet the deadline to extend the NSA Spy Programm which allows the USA to storage data of people indefinitely. Since today the storage of data by NSA is allowed only for the last 6 months. This is guilty only for US citizen. After the 6 months the NSA has to bring back the data to the internet provider, so the journalist at ARD, Germany.

But what does this mean for all the non US-citizen abroad? And how long will the US providers storage the data?