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Saturday, October 23, 2021

China property giant Evergrande Group wired USD83.5 million in interest owed in an offshore bond from September 23 on Thursday, temporarily averting default, according to a Reuters source and Chinese newspaper Securities Times.

The wire to a Citibank fiduciary account following a 30-day grace period came after assurances by various members of the Chinese government, Reuters reported. At a Beijing forum Wednesday, Chinese Vice Premier Liu He described the risks as controllable, and chairman of the China Securities Regulatory Commission Yi Huiman said that while authorities needed to curb excessive debt more broadly by “improv[ing] the effectiveness of the constraint mechanism on debt financing”, the matter would be dealt with properly.

Once China’s top real estate developer, Evergrande had accumulated approximately USD305 billion in liabilities, two per cent of the Chinese gross national product, after “dwindling resources” cut its value by 80%, according to Reuters. September data revealed Chinese home sales by value fell by nearly 17% year-on-year, according to The Guardian, and fears over its default led to a slowdown in China’s third quarter GDP growth to a year low of 4.9%. Two sale negotiations with rival developers Hopson Development and Yuexiu, valued at USD2.6 billion and USD1.7 billion, respectively, were suspended, reportedly due to a lack of consent by the government of Guangdong province currently overseeing Evergrande’s restructuring.

News of Evergrande’s remittance caused its shares to rise by as much as 7.8% this morning after a two-week pause in trading for the anticipated sale of 50.1% in Evergrande Property Services Group, and offering some reprieve for bondholders, according to Reuters. Portfolio manager at GaoTeng Global Asset Management James Wong, interviewed by The Guardian, called the news “a positive surprise”, adding “[i]f Evergrande pays this time, I don’t see why it won’t pay the next time.” Jun Rong Yeap for IG Asia pte., interviewed by Bloomberg, said the report “overturned” the narrative “that Evergrande will face difficulty in securing cash ahead”.

Further missed payments are due October 29 and November 11 after similar 30-day grace periods; including yesterday’s USD83.5 million, nearly USD280 million is owed to bondholders.

Stocks have been down for many major Chinese developers: Reuters Wednesday reported year-to-date stock prices fell 87.8% for Sinic Holdings, currently in Fitch Ratings’ ‘restricted default’ after failing to make an October 18 bond payment valued, according to The Guardian, at USD246 million; 80.2% for Evergrande itself; 78.3% for E-House, 58.5% for Fantasia Holdings and 54.6% for Kaisa Group, which defaulted in 2015 and had bonds reach record lows.

Estimates of the Chinese real estate market’s size range from 16 to 25% of the Chinese gross domestic product, according to The Guardian. Chinese President Xi Jinping’s aim to transform the country’s economy from one of debt-fuelled “inflated” growth to one of improved “quality and returns” included imposing regulations on developers that limited their capacity to borrow. A Guardian comment piece from economist George Magnus published on October 15 made reference to China’s “ghost cities” and “rampant credit creation” that has given rise to high vacancy rates and the “financialisaton of housing”.

Saturday, September 27, 2008

Richard Thomas, the British Information Commissioner has criticized the Liberal Democrats for cold calling 250,000 British people automatically to encourage them to support their party. The commissioner announced in a press release made public on Thursday that “the Information Commissioner’s Office has taken enforcement action against the Liberal Democrats after finding the party in breach of the Privacy and Electronic Communications Regulations.”

In the enforcement notice, which has been seen by Wikinews, the Liberal Democrats are told that “in view of the matters referred to above the Commissioner hereby gives notice that, in exercise of his powers under section 40 of the [Data Protection] Act, he requires that the Liberal Democrats within 30 days of the date of service of this Notice shall, in accordance with Regulation 19 of the Regulations, cease using an automated calling system to transmit communications comprising recorded matter for direct marketing purposes to subscribers who have not previously notified the Liberal Democrats that they consent to such communications being sent to them.”

The Liberal Democrats have been given 28 days to appeal against the action, although the party has said that they accept the decision. In 2005, the party successfully stopped the Scottish National Party for continuing to carry out a similar cold calling campaign. Nick Clegg, the leader of the Liberal Democrats, defended the party’s actions by saying that “I rather hope it won’t disturb. People don’t have to pick up the phone if they don’t like the time at which the call is made.”

If the Liberal Democrats continue to cold call users in thirty days time, they are at risk of prosecution and an unlimited fine.

Monday, October 11, 2021

In the United States on Saturday, the Federal Bureau of Investigation (FBI) and the Naval Criminal Investigative Service (NCIS) arrested a couple in West Virginia. Court documents released Sunday allege they tried to sell classified data to a foreign nation.

The Maryland couple, former U.S. Navy nuclear engineer Jonathan Toebbe and his wife Diana Toebbe, were both arrested and charged with violating the Atomic Energy Act. Mr. Toebbe worked on naval nuclear reactors and acoustic quieting. Ms. Toebbe is a teacher at the private Key School in their neighborhood in Annapolis, now on indefinite suspension according to the school.

U.S. Attorney General Merrick Garland said in regards to the case, “The complaint charges a plot to transmit information relating to the design of our nuclear submarines to a foreign nation.” The U.S. Department of Justice (DOJ) alleges the couple tried to sell this information to a foreign agent who was actually an FBI undercover agent.

Documents filed in federal court allege Mr. Toebbe arranged to sell restricted information to a foreign power identified only as “COUNTRY1” over several months via encrypted messages, and that he arranged “drops” of these data on SD cards in various locations in exchange for payments in cryptocurrency.

At the first of the drops in West Virginia, the DOJ alleges Mr. Toebbe hid an SD card in a peanut butter sandwich while Ms. Toebbe acted as a lookout. At the second of these in eastern Virginia, the DOJ charges that an SD card was placed in a chewing gum package. Federal officers arrested the couple at the third drop site, in West Virginia, on Saturday.

Both Mr. and Ms. Toebbe are set to appear in federal court tomorrow in Martinsburg, West Virginia.

Wednesday, January 10, 2007

Apple Inc. today has introduced the much-anticipated iPhone at the Macworld Conference in San Francisco.

The iPhone is claimed to be “a revolutionary mobile phone” as stated on the Apple website. The device appears to be running a mobile version of the Apple operating system Mac OSX. It is approximately the same size as a 5th generation iPod, it has a 3.5-inch LCD touchscreen display that is used to access all features of the phone including number dial, as well as making phone calls. The iPhone plays music, movies, displays pictures and is able to connect to a wireless network.

Apple CEO Steve Jobs unveiled the device by walking onto the stage and taking the iPhone out of his jeans pocket. During his 2 hour speech he stated that “Today Apple is going to reinvent the phone, We are going to make history today”.

Today Apple also released their Media Center device – Apple TV. It will directly compete with Microsoft’s Media Center operating system. Apple has taken a different approach to the media center market; rather than storing content (such as movies, music and photos) on the device, Apple TV connects to a computer (Mac and Windows) over a wirless network connection and plays all content stored on that computer. This makes it substantially easier for users to organize their media content.

Sunday, April 3, 2011

The US Food and Drug Administration (FDA) has issued proposed calorie labeling rules requiring most retail food vendors to display the calorie counts in items on their menus and menu boards. The proposed rules, issued Friday and expected to be finalized in 2012, would apply to most restaurants, snack bars, vending machines, coffee shops, drive-through restaurants, and convenience and grocery stores.

The US Congress required the rules in the health-care reform law passed in 2010. The rules proposed by the FDA must undergo a public comment period before they are finalized and take effect, said Michael R. Taylor, Deputy Director for Foods at the FDA.

The proposed regulations pertain to businesses devoting more than 50 percent of their floor space to the sale of food or that consider themselves restaurants, specifically food-selling chains with at least 20 stores nationally. Included are candy stores, bakeries, and ice-cream parlors.

The FDA’s proposed guidelines specify that chains post the calorie counts of foods and drinks on menus and menu boards or next to the food item, such as at a salad bar. The menu is to prominently exhibit the calorie content of each item in a way customers can see easily, giving them the same information packaged foods prepared at home currently provide. The information must be displayed in “clear and conspicuous” print and colors.

Many cities and states have passed laws requiring calorie labeling on menus, beginning with New York City in 2008. California implemented a similar law in January, although many counties are waiting for the release of the federal guidelines before they begin enforcement. Some fast-food chains there, such as McDonald’s and Starbucks, are displaying calorie counts on menus in some of their stores.

The rules are intended to curb the national obesity epidemic since, according to FDA estimates, one third of the calories people consume yearly come from food eaten out. In a statement issued yesterday, Kathleen Sebelius, Secretary of Health and Human Services said, “Giving consumers clear nutritional information makes it easier for them to choose healthier options that can help fight obesity and make us all healthier.”

Excluded from the rules are businesses whose primary product is not food sales but that sell it, such as bowling alleys, airports and airplanes, amusement parks, hotels and movie theaters. Alcohol is also excluded.