Schlagwort-Archive: Assett

Corona, Job Losses And Economy

Fincial Times wrote in November of 2012 that the biggest Swuiss bank, UBS, plans to lay off 10,000 jobs, 1/6 of it‘s global work force.

The renowned German economy newspaper „Handelsblatt“ wrote on 8th of September 2019 that there were 30,000 job cuts in investment banking sector globally straight to recession risk, regulation and digitising.

Bloomberg reports that UBS has implemented a new regulation that hiring of one backoffice employee will be only possible in exchange for 5 employees who left the company, so Handelsblatt wrote.

The VW daughter Audi plans 10,000 job cuts to reduce costs and to begin to restructure the company to produce more electro-cars.

VW plans 5,000 to 7,000 job cuts to increase the profit to 5.9bio € pa by 2023 and automatization ratio.

The renowned german newspaper BILD reported an 09th of October 2020 that BMW plans to shrink the production and salary significantly. All every 74 seconds one new BMW car will be produced instead of 69 seconds before. On 13th of February 2020 Merkur reported that 17 weeks the production will be delayed because of corona virus.

Lufthansa chief Carsten Spohr said on rp-online that on 24th of April 2020 he will cut the work force by 10.000 employees. Lufthansa has to fight with strike waves in the recent 2 years as it‘s work force demand signifcantly more salary. Millions of passengers have ot switch their flights to other airlines which shrink the profit of Lufthansa signifcantly. The German government bought 20% of Lufthansa assetts to give Lufthansa the necessary liquidity and defend the company from merging and aquisition. German government also have bought an option for 5% and 1 assett more to receive the veto right if an aquisition threatens.

Procter and Gamble has announced in August of 2018 that with a globally workforce decreasing from 121,000 people in 2013 to 92.000 people in 2018, the number of jobs at the company is at an all-time low.

The German chemistry conglomerate Bayer will cut 1 in 7 of its 32,000 jobs in Germany. The company is undergoing a massive restructuring as it faces legal and financial tests. ( Source dw.com, 9th of April 2019 ).

The German car parts giant Continental prefigure the loss of 5,500 jobs by 2028 to save 500mio€ annually.

https://www.thelocal.de/20191120/german-car-parts-giant-continental-confirms-it-will-slash-5500-jobs

On May 17 2019When the Austrian billionaire and investor René Benko is taking complete control over the major German department store chain Galeria Karstadt Kaufhof, the union Verdi and the company works councils signed an agreement and redundancy plan to slash 2,000 full-time jobs—1,000 management and administrative staff (mainly in the old Kaufhof headquarters in Cologne) and another 1,000 full-time jobs in shops. The decision will result in more branch closures and cuts to jobs and wages.

https://www.wsws.org/en/articles/2019/06/15/kauf-j15.html

Marketwatch announced on Feb. 26, 2019 that General Electric Co. disclosed that it shed 30,000 workers last year as the conglomerate restructured its operations and sold off some business lines.

On 1 of February, 2019 CNBC announced that General Motors offered buyots to 17,700 employees in November 2019 while expecting to 4,000 invountary job cuts.

In a report on first of October 2019 dw.com announced that 2600 employees at the Opel factory in Germany’s Rüsselsheim will be working reduced hours for six months. The company is struggling long time as it‘s car sales has been very low. The french car conglomerate PSA has aquired and restructures the company. Opel makes now profit again. The corona crisis could bring it to losses again so there will be some government compensation for affected workers, including partial, untaxed pay from unemployment insurance.

The global economy has a period of 10 years of booming economy behind with indexes rising to all time highs. A correcting scenario was overdue. All those measures affecting the labour market are not caused by Corona virus but caused by market correction. And more, the new technologies will further affect the market. In USA the agriculture industry use self working agriculture devices like combine harvesters, tractors and so on. In Europe those devices are not in use. The robotic technologies will develop to serial production. Will this technology be in common use the workforce will shrink again, also with or without a corona pandemic szenario.

If we learn to think not in those old doctrines like capitalism, communism, mercantilism but in the fortunes which every of these old systems have, we could have the posibility to learn a new system within a content life will be possible. The free market is an illusion. We have to much regulation in each sector. Communism is also deprecated in the times of lean production and just-in-time delivery. And capitalism pushes the envelope. Civilisations which are not able to assimilate with the requirements will be melted and supplanted by an other, perhaps the West by the Asian, the USA by the Chinese.

Corona medication in phase III study could be available soon

Novartis and the US pharma corporation Incyte are planning to test their Corona medication Jakavi in a phase III study. Phase III studies are on humans. Jakavi should assuate the cytokine storm a type of severe immune overreaction that can result from corona infection and may contribute to respiratory compromise in patients with corona infection and should expedite the recovery.

Phase III study means that the medication could soon be available for patients to buy.

 

 

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?

SunOpta Inc first company that will produce PVP verfied non-gen engineered food

SunOpta Inc. is a leading global company focused on natural, organic and specialty foods. In the last 5 years the worth of the assetts doubled from 5.00$ to 10.00$. On Monday, the 18th of May 2015 announced the company that it receive (PVP) verification for Non-Genetically Modified Organisms (GMO)/Non-Genetically Engineered (GE) products and it will the first company in the USA that will produce PVP verfied soybeans and corn.

„Becoming the first PVP verified Non-GMO food manufacturing facility in is a great honor for and consistent with our commitment to Non-GMO and organic food products which are in high demand with today’s consumers,“ said CEO Steve Bromley. „Having USDA verify that we are complying with our standards ensures that our customers can be confident that they are getting the highest quality Non-GMO soybeans and corn. We look forward to implementing the USDA PVP program at other facilities across our vertically integrated platform.“

US tax evading prosecution: How USA classify and punish the swiss banks

The US government has charged European banks that they helped US citizens to traffic their money out of USA without paying the taxes and that way to brake the law of the USA. To divide the good from the ugly banks the USA has classified the banks into 4 categories.

Category 1 banks are charged and preliminary investigation is started.

As category 1 bank were classified

Credit Suisse ( investigation closed and 2,8mrd$ penalty paid ); Julius Bär; Basler KB; Zürcher KB; HSBC Private Bank; Pictet; Rahn und Bodmer; LLB Schweiz; Bank Hapoalim; Bank Mizahi; Bank Leumi (investigation closed, 500mio$ penalty paid); Bank Frey (penalty leads to liquidation); Neue Züricher Bank (penalty leads to liquidation); Bank Wiegelin (penalty leads to liquidation);

Category 2 banks are banks which have broken US law, but no inquiry is started

As category 2 banks are classified

Aargauer KB, BC du Jura; BC Vaudoise; Berner KB, Graubünder KB, Luzerner KB, Neuenburger KB, Nidwaldner KB, Schaffhauser KB, St Galler KB, Tessiner KB, Walliser KB, Zuger KB, Hypo lenzburg, Lombard Odier; Bank Coop; Bank Linth LLB; Banque Privee; Edmond de Rothschild; Comer Bank; EPG international; Migros Bank; PostFinance; Piguet Ballard; UBP Vallant; Deutsche Bank (Schweiz); Rothschild Bank; Coutts; BSI (case is closed with a penalty of 211 mio $ paid); Category 3 Banks are banks didn’t broke any US tax law;

Category 3 banks are banks without any charge:

As category 3 banks are classified:

Baloise Bank SoBa; Cedmbra Money Bank; Vontobel; Thurgauer KB; Freiburger KB; Raiffeisen;

Category 4 banks are local banks in Department of Justice Definition:

Appenzeller KB; AEK Bank 1826; DC Bank; Regiobank Solothum;

The following banks waive the NPA:

Acrevis Bank; Bank am Bellevued; Banque Cramer ( incl Valartis Schweiz ); Basellandschaftl KB; BC de Geneve; Benedict Hentsch & Cie; BZ Bank; Clientis; Glarner KB; Globlance; LGT Schweiz; Mirabaud; Notenstein; Obwaldner KB; Schwyzer KB; Urner KB; VP Bank (Schweiz); VZ Hoöding Barclays (Schweiz).

The banks in category 1 are prosecuted and if are guilty classified as criminal by the USA.

The banks in category 2 have to recognize, that they broke US law and sign a NPA (non persecution agreement). The NPA oblige the banks to cooperate with the US – authortiy for at least 4 years to find tax evaders and the institutions which help them to traffic their money out of the USA without paying their taxes. The banks have to sign the NPA with the Department of Justice of the USA. The advantage for the bank is that it is not classified as criminal by the USA and that they can negotiate the punishment.

The banks in category 3 and 4 are banks clean without any charges and investigations.

In face of the bankrupties of classified 1 banks it is necessary to watch the development of the prosecutions to secure the money, if banks get into troubled water.

How can an investor estimate the penalty a bank will have to pay?

The bank accounts were divided in 3 categories. Accounts which were opened bevor 2008 were punished with 20% of the capital on the account. Accounts which were opened between 2008 and February 2009 were punished wiht 30% of the capital on the account. And the accounts, which were opened after the case of UBS were punished wiht 50% of the capital of the account. Did tax evaders complain theirself the amount for that account will be subtracted from the punishment. The US authorities could only demand that the banks give them the names of their costumers if the costumers agree to that proceedure.

 

Dollar increasing. Indizes stagnant. How is developing gold?

China and India gold purchases are stabilising the gold and silver price, even though the US dollar strenghtened. Gold usually is traded in US $. So, normally, if the US $ strengthened the gold and silver prices decrease. The last years the primary gold production yearly is stable by 3000 t. China and India together purchase 2000 t of that primary gold production. The rest, 1000 t, including the recycled gold is splitted by the rest of the world. If India and China stop that gold price could sharply decrease.

The gold stocks of the EU-States and on commodity exchanges are falling. Also the ETF’s are selling gold. This shows the activity of the swiss gold refineries. ETF’s have 12,5kg gold bars. China and India are buying 1kg bars, China with 9999 and India with 9995 quality of purity. Since 2013 the swiss gold refineries producing 1 kg bars of the 12,5 kg bars, which are normally used by the ETF’s. The swiss export statistics show that these 1 kg gold bars are exported with increasing value to China and slowly decrescent to Hongkong. Chinese officials said in the past, that China wants to secure its currency with real values like gold. China also accumulates the gold which it produces itself. China is the biggest primary gold producer. Chinas reserve is probably much bigger than the 1000t it has pronounced years ago.

If the FED will start to increase the rate the gold and silver price will increase quickly. The FED announced several times that it will increase the rates, if the job market is good and the economy start to grow sustainable.

The Indians and the Chinese, the world’s largest buyers of gold, have seen the value of their gold investments increase by approximately 200% over the last decade measured the worth in their domestic currencies.. Due to a collapse in their national currencies, South East Asians and Koreans have also seen the value of owning gold.

So the reserves of gold and silver which China and India buy now will be increasing it’s worth or will help to keep the yuan stable if the currency slumps.

And the finance system in China challenges the government. The local governments, the real estate sector and the industrie are highly indebted while the economy slows and the real estate sector slumps. The Chinese governments think about quantitative easing to give the banking system and the local governments enough liquidity to pay their debts and to have liquidity for operating and innovative businesses. China also plans to liberate its financing system to make it more flexible.

And China is not the only country, which is highly indebted. South Korea, Thailand, Malaysia and Hungary are also countries where the debts are critical high.

Investors have to watch USA before they invest

USA is waiting for recovery, but labormarket is slowing and the upswing of industry put on hold for the last 2 years. The quantitative easing was postponed for several quarters. Now the FED thinks about increasing the rate.

But since 2009 the stock exchange increases most if the monetary policy is liberal. China, Japan and Germany liberate their monetary policy, while USA regulate it. Also the US assetts price-earnings-ratio is very high valued. The assetts P/E was only higher 1929 and at the end of the 90’s.

The indizes are jumping from record high to record high so the sentiment of the brokers and investors is good. But there are signs which shows that the upturn turns to an end.

The US transportation services index slows since November 2014. Since March also the oilprices (WTI) increase from 45 $ to 57 $, so the possibility exists that the slump of the transportation services index find its causality in the increasing oilprices. Then the transportation services index will rise to the level of the industry production again. If this not happened, manufactures will possibly produce without orders to fill their warehouses. And that will lead to falling prices and recession. Another sign of the possibility of a downturn is the record high of 273 IPO’s in the USA, also the IPO indices are on a record high. The best sentiment for IPO’S is at the end of a boom. Then many investors have the sentiment for risky investments, and they will finance their investments with credits if they want to invest in assetts. In February 2015 the margin debt was at 465 bio $, also a record high. The lsst peaks were in March 2000 and July 2007. At boom level the carry trades are no problem, but if the rally stops and the sentiment turn bad, broker need more money from the investors. If they have no more money they have to close positions. And then the courses begin to fall. And the Dow Jones stagnates since begin of March 2015. So there is also the possibility of a fall. Investors have to watch what is going on in USA before they invest. The forecast of an upturn could be euphemistic.

 

How to earn money with energy-supply

The DAX decreased from 10.029.43 € in 08/2014 to 8987.80 on 24.10.2014

MDAX, TecDAX, Euro Stoxx 50 are following the DAX-movements.

Dow Jones inustrial averages, S&P 50, Nasdaq 100 and Nikkei 2250 are similiar in it’s movements but notedly over DAX and less volatile

Hang Seng goes it’s own way, driven from chinese industry.

ESTX UTILITY INDEX in 2014 shows also its own character. The index is the collection of the 600 assets with the highest market capitalization in the €-zone and shows more the situation in  the  €-zone. It also declined like the DAX the last days but not as volatile like the DAX itself. It decreased from 647 points in 2008 to 215 point in 2012 and increases in a more sidewards-movement to 275 points now.

http://www.finanztreff.de/kurse_einzelkurs_uebersicht.htn?i=159230

But the Dow Jones Utility Average Index turn up in 10/2014.

But what is this Index?

The Dow Jones Utilities Average is a price-weighted average of 15 utility companies that are listed on the New York Stock Exchange and are involved in the production of electrical energy. The average as it is known today began on January 2, 1929 with a base value of 50.

Which are the 15 companies listed in that index?

FirstEnergy Corp. is a public utility holding company.

Exelon Corporation is a utility services holding company.

American Electric Power Company, Inc.(AEP)is a public utility holding company.

PG&E Corporation is a holding company that holds interests in energy based businesses.

Public Service Enterprise Group Incorporated is a public utility holding company.

Edison International, through its subsidiaries, develops, acquires, owns, and operates electric power generation facilities worldwide.

NiSource Inc. is an energy holding company.

The AES Corporation acquires, develops, owns, and operates generation plants and distribution businesses in several countries.

American Water Works Co., Inc. provides drinking water, wastewater and other water-related services in multiple states and Ontario, Canada.

Dominion Resources, Inc., a diversified utility holding company, generates, transmits, distributes, and sells electric energy in Virginia and northeastern North Carolina.

CenterPoint Energy, Inc. is a public utility holding company.

Duke Energy Corporation is an energy company located primarily in the Americas that owns an integrated network of energy assets.

Consolidated Edison, Inc., through its subsidiaries, provides a variety of energy related products and services.

NextEra Energy, Inc. provides sustainable energy generation and distribution services.

The Southern Company is a public utility holding company.

Also Alon USA Energy, Inc. Which refines and markets oil, operates pipelines, and operates convenience stores is on the watch list.

So the Dow Jones Utility Average Index is a collection of US based, international operating energy companies. Also some water supply companies are in it. But why is this index decoupling from the world economy the last days?

Solarenergy seemed to come back. Some solar project in USA are planned and in Germany some industrysectors planning producing their own electricity using solar panel.

Japan and UK are planning subventions for solar. In USA the the government want to make investment and tax-write offs of solar plants be easier.

http://www.wallstreet-online.de/nachricht/5109377-globaler-solarmarkt-2014-subventionen-ueberleben

With the closing of ressources in the mining sector, the increasing prices for oil, coal, uranium and gas makes green technology more and more necessary to produce the needed electricity. But the efficiency of that form of producing electricity is much less efficient than producing it with fossile energy. In 2013 in Texas 8.7% of the installed production capacitiy was available for producing wind energy. The efficiency of gasplants was 81% – 89%, of coalplants was 84% – 86%. And between 2000 and 2015 the consumption of electricity in Texas increases by 15%. In 2014 the SWOC – the system wide offer cap – rose by 40% , from 5$ to 7$ per MWh amd will rise to 9$ by 2015. The demand by private consumer quadroupled in the hot summer of 2011. Such increase of prices are substantiated when supply is not keeping up with demand. As in the summer peak the planned wind energy lack because there was no wind to propel the generators of the wind park generators. So USA have to secure the energy supply with the flexible use of gas plants.

http://www.window.state.tx.us/specialrpt/electricity/96-1767.pdf

Also the fear of terror attacks at the public energy supply sector, a hacker attack on its computer system let the USA invest in this sector.

So USA will have to do a lot to maintain and upgrade the infrastructure of it’s energy supply. And as demand will surmount the offer the prises and profitability of energy supply companies will be secured.

But what is with the free energy projects, which produces energy without the dependence of fossile energy, wind, water and solar, like the trawöger pyramid?

Here an indian example

http://www.youtube.com/watch?v=yodY1jH5j-I

or a russian one

http://www.youtube.com/watch?v=z2uLBWqqzok.

Look at the environment. Do you really think this machine – where no parts are in motion – is so magically that no industry – or other private person – can build it. I think not. No parts in motion means that there are no parts which has to be maintained for the reaseon that they move, lika a shaft.

If it is true, that this indian machine could produce between 3,5 and 10kw/h KW/h and the russian one could produce 1KWh both machines are able to supply the private electricity consumption of an average household, placing one of this in one house each, including loading batteries of electrocars and electrobikes at night. Such free energy plants produce 100% every day without producing any CO².

This machines could also being used for military reason in nearly every environment, would be transportable and autonom. No power lines would be needed. This plants could be placed in al crucial institutions. So why the governments don’t use them?

DNLA – the way to improve the efficiency for your company

In the operating processes of today the processes and requirements changes in continually shorter intervals. To match new requirements, the workforce have to improve continually. It have to attune to new situations and changing priorities. Different people and changing products and services require more and more flexibility and skills in the potential of the staff.

But how can you influence a human being positiv. How can you achieve a positiv, a productive clima in your company which optimizes everybody of your workforce to optimum and enables him to develop his potential to full value for his company. How can you become the desired company for the best talents and be able to keep the best staffmembers in your workforce?

It is very difficult to describe the effect of DNLA (Discovering Natural Latent Abilities) on your staff. It is like describing the feeling driving in a car, dividing the feeling driving in a Minicooper from driving in a Ferrari. So the most urgent before buying a car is the test drive. Only the test drive makes it possible for you to recognize the quality of a car and convince you from it’s character.

The same is with us.

If you use DNLA

  • We will improve the motivation of your staff.

  • You will get better efficiency of your staff, fluctuation and number of work days lost due to illness will decrease.

  • The staff will be more motivated, more healthy and will have a beneficial sleep.

We offer you to try until three different test DNLA proceedures to very special conditions.

It also could be possible to meet in your company to show you the advantages of the DNLA procedure.

Did we kindle your interest?

Please send me your E-Mail to

friedrichbier@gmx.de

Argentina is under US pressure to control patagonian region

A day after the Senate approved the proposed debt exchange as a way to circumvent U.S. court rulings Argentina government diskusses swapping global Argentine bonds for paper governed by local law. After a New York court had ruled that Argentina is prohibited from paying holders of its restructured bonds without also paying the hedge funds $1.3 billion plus interest.

In 2002 bondholders got less than 30 cents on the dollar as Argentina defaulted on about 100 bio $ in bonds, because a small group of hedge funds went to court for full repayment.

Argentina steadfastly refuses to pay the holdouts in full, saying that to do so would open the country to a raft of new lawsuits. Argentina fights against recession and inflation. With the swap Argentina tries to to circumvent the U. S. Court rufling and hold liquidity. „There is obviously willingness among many creditors, or bondholders, to participate in the sovereign debt payment law, in order to get the money that is owed to them,“ cabinet chief Jorge Capitanich told reporters. The debt swap bill, passed by the Senate on Thursday. It will allow holders of 29 bio $ in bonds under foreign law the choice to swap them for papers governed by Argentine or French law.

In need of financing to develop its vast Patagonian shale oil and gas fields, Argentina will be unable to issue fresh international debt until the lawsuits are settled.

With Patagonia shale oil and gas field Argentina is sitting atop of a shale bounty that could transform the outlook for the Western Hemisphere’s supply and secure the South American country’s energy self-sufficiency for decades. And it is in an area where you’ve already got oil industry activity. There are service companies, pipelines and infrastructure, and you have also knowledge of the rocks.

Asked what was the key reason behind the decision of US based Corporation Chevron to increase its investment in Vaca Muerta, Robertson answered: “We like the rock. That’s first and foremost. Drilling costs are coming down and the well results so far were sufficient to warrant additional investment.”

BP, CNOOC, Chevron and Sinopec will start 2017 to drill more than 1500 wells to produce 50,000 barrel/day of crude oil and 3 billion cubicfeet/day of natural, so YPF.

The  Chevron Corporation is operating in Argentina for many years where it produces currently 21,000 barrels of crude oil and 4 million cubic feet of natural gas per day and has signed Heads of Agreement to spent $1.24 billion capital expenditure to explore and develop the shale oil and gas in the Vaca Muerta Basin within the Neuquen Province in Argentina.

This agreement comes at a critical period for Argentina as it should start to import natural gas and refined products although it is recognized to hold ones of the largest reserves in the world for shale oil and gas.

Chevron estimates that 2014 capital and exploratory expenditures will be $39.8 billion, including $4.8 billion of spending by affiliates.

At the same time NML Capital served subpoenas this week to Bank of China (BOC) and Industrial and Commercial Bank of China (ICBC) in an effort to obtain information on $6.8 billion in financing for deals signed by the two countries in July.

„We want to understand the mechanics of these credit facilities to establish whether assets to which Argentina has a legal title could surface in jurisdictions where we would be able to attach them,“ a lawyer advising Elliott told.

The subpoenas are aimed at a facility provided by China Development Bank, ICBC and BOC to finance the onstruction of two hydroelectric dams in Argentina’s southern Patagonia region and a loan from China Development Bank and ICBC to finance the Belgrano Cargas railway project.

Both deals were signed by Argentine President Cristina Fernandez and her Chinese counterpart, Xi Jinping, during an official visit of a Chinese delegation to Buenos Aires.