Links 2012-10-24
Europe
Greece to cut wages and pensions further to avoid default – Telegraph
“Greece is set to cut public sector wages and pensions, as it agrees terms with its international lenders to release the next tranche of its bailout to avoid defaulting.”
Moody’s downgrades five Spanish regions; confirms ratings of other five regions
“Moody’s Investors Service has today downgraded by one or two notches the ratings assigned to five Spanish regions — Andalucia, Extremadura, Castilla-La Mancha, Catalunya, and Murcia.
At the same time, Moody’s has today confirmed the ratings of the Basque Country and the Diputacion Foral de Bizkaia at Baa2, one notch above the sovereign bond ratings. In addition, the ratings of the regions of Madrid, Castilla y Leon and Galicia have also been confirmed at Baa3, on par with the sovereign ratings. Finally, the ratings of the region of Valencia and of four government-related entities in Valencia have been confirmed at B1.”
Las familias han perdido casi un tercio de su riqueza financiera en solo seis años – CincoDías.com
La lenta erosión de la clase media – ABC.es
Good Spanish-language article on the toll that the Spanish debt crisis is taking on the middle class.
Merkel y Hollande prometen a Irlanda un trato «especial» en la recapitalización de su banca – ABC.es
Ann Pettifor: The IMF and the End of Austerity
“IMF economists have finally acknowledged what politicians have long denied. They have shown that austerity policies implemented by politicians and demanded by financial markets are severely damaging to what economists define as ‘growth’. Ultimately, argues the IMF, these policies are self-defeating. As most thinking people now recognise, rather than repairing the broken and bankrupt economies of the world, austerity is making matters worse.”
Banks
U.S. sues Bank of America over Hustle mortgage fraud | Reuters
“The United States filed a civil mortgage fraud lawsuit against Bank of America Corp (BAC.N), accusing it of selling thousands of toxic home loans that later defaulted to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), leading to more than $1 billion of losses.”
Low Rates Pummel Bank Profits – WSJ.com
“An important gauge of lending profitability, known as net interest margin, has dropped to its lowest level in three years. The measure tracks how much banks earn when they borrow from depositors and then lend or invest those funds.”
Technology
Facebook shares soar 22pc on mobile hopes – Telegraph
“Facebook shares look set for their best ever day after signs the social networking site can make money from its mobile users sparked a buying frenzy.”
Hand(s) On With the New iPad Mini – Bloomberg
“At $329, only one in five iPad minis will be purchased instead of a larger iPad, said Piper Jaffray analyst Gene Munster. While chatting with him on the way out of the demo room, he noted that while Apple owns 85 percent of the 10-inch tablet market, smaller size devices have grown to become 20 percent of the overall market. Now that Apple has gotten into that game, he thinks the company’s overall tablet market share will rise from 70 percent to 80 percent within a year, continuing its iPod-like dominance.
“Their market share is going to go up,” he said.”
Apple sets a crowded table for holiday shoppers — Apple News, Tips and Reviews
“After Tuesday’s iPad event, Apple now has the strongest assortment of iOS mobile products it has ever put in front of consumers, who are more excited than ever about mobile computing. It’s a complex lineup, but it could force competitors to scramble for scraps.”
Phil Schiller Trash Talks Android Tablets At iPad Mini Event | TechCrunch
“Wow, have you ever seen that much trash-talking an Apple event? After introducing the iPad Mini, Apple’s SVP of Worldwide Marketing, Phil Schiller, did a side-by-side comparison of the new iPad versus the leading Android tablet, Google’s Nexus 7. “Others have tried to make tablets smaller than the iPad, and they’ve failed miserably,” Schiller said. “These are not great experiences.”
It was kind of remarkable to see Apple taking what some would call the “low road,” and actually comparing their product to that of the competition in such unkind terms. It’s the first time that Apple has really taken the trash-talking to this level – at least in recent years.”
It’s Making The Shift: 14% Of Facebook’s Q3 Ad Revenue Came From Mobile | TechCrunch
“Paying $329 instead of $500 to be able to say you have an iPad will be huge for many people, and the can of worms Apple’s opened up might just be the hardest outbreak to contain in the tablet space yet.”
Facebook mobile revenue grows faster than expected | Reuters
“Facebook Inc grew mobile advertising revenue several times in the third quarter, a faster-than expected pace that helped reassure investors that the world’s No. 1 social network is beginning to figure out how to earn money off smartphone and tablet users.”
Don’t Call The New Microsoft Surface RT A Tablet, This Is A PC | TechCrunch
“Despite its shortcomings, the Surface RT is a very functional productivity device in a traditional sense. I wrote the majority of this review on the Surface with the $129 Type Cover. It feels like an ultraportable Ultrabook. Using Windows RT’s classic Desktop mode, I was able to compose and edit within TechCrunch’s WordPress back-end as if I was sitting at my Windows 7 desktop. In this use, the Surface outshines other tablets as it allows for a full desktop workspace. But here is where the problem lies – the Surface acts like a tablet and ends up working more like a notebook. This interface between flat tablet and horizontal laptop is frustrating and confusing.”
Terrorism
How Team Obama Justifies the Killing of a 16-Year-Old American – Conor Friedersdorf – The Atlantic
“Asked about the strike that killed him, a senior adviser to the president’s campaign suggests he should’ve “had a more responsible father.””
“Over the past few years, the Obama administration has institutionalized theuse of armed drones and developed a counterterrorism infrastructure capableof sustaining a seemingly permanent war.”
Obama moves to make the War on Terror permanent | Glenn Greenwald | Comment is free | guardian.co.uk
“Complete with a newly coined, creepy Orwellian euphemism – “disposition matrix” – the administration institutionalizes the most extremist powers a government can claim”
Lance Armstrong
Indurain believes in Armstrong’s innocence
“Indurain told Radio Marca that the entire case was “bizarre” since Armstong never tested positive for doping. Indurain says “it is strange they take away his tours because of the testimonies of some teammates.””
Economy
Eurozone PMI data hits a 40-month low – Telegraph
“The eurozone sank further into decline as output of the manufacturing and services sectors combined dropped at the fastest rate since June 2009.”
China flash PMI shows signs of recovery – FT.com
“HSBC’s flash China manufacturing purchasing managers’ index (PMI), the earliest indicator of the state of factory orders in the country, moved up to 49.1 in October, from 47.9 in September. A reading below 50 indicates contraction. The bank said that a slower contraction of export orders in October had probably been helped by Christmas orders and better US growth prospects.”
Falling factory orders fuel fears recovery has already run out of steam | Business | guardian.co.uk
“Manufacturers struggle amid ongoing public sector austerity at home and in key European markets”
Buffett says clear signs of global economic slowing | Reuters
“Berkshire Hathaway Chief Executive Warren Buffett said on Wednesday there are clear signs the global economy is slowing, although the U.S. economy is “inching ahead” as other regions decline.”
BBC News – Pensioners’ income on the rise, says ONS
“Figures show that average disposable income for retired households was two and a half times higher in 2010-11 than in 1977, taking inflation into account.”
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