Links: 2013-09-05
BBC News – UK services sector growth at six-year high
“The business activity index registered 60.5 in August, the highest reading in more than six-and-a-half years.
It also showed that backlogs of work are running at the highest level in more than 13 years.
But despite the extra work, there was only a small increase in employment.”
BuzzFeed is the media industry’s worst nightmare — profitable, growing and investing in news
“According to an internal memo from founder Jonah Peretti, BuzzFeed has tripled its traffic in a year, has more than 300 employees, is profitable and plans to invest in breaking news and investigative journalism.”
Apple’s ‘iPad 5’ and ‘iPad mini 2’ on track for Q4 release, low-cost mini coming in 2014
This timetable is slow and will give Android (and Microsoft-Nokia) the opportunity to respond. I don’t expect the low-cost iPhone to really be low cost either.
Krugman rightly sees Obama as very concerned about the integrity of the banking system, meaning the existing banks, perhaps at the expense of the real economy. This is the Tim Geithner legacy, that we needed to fix the banking system first and then proceed from there. That’s the mindset and this is why we are only now seeing some bank fraud prosecution.
“One of the reasons I expect GDP to pick up over the next few years is that state and local government spending will probably stop being a drag on GDP, and might even add a little to GDP going forward.”
“In one corner, we have the world’s banking elite, whose latest champion is Peter Sands, the chief executive officer of Standard Chartered Plc. “I guarantee that a regulatory framework that uses the leverage ratio as a primary measure will make banks and the banking system more prone to crisis,” he wrote recently in the Financial Times.
Because Sands calls the shots at a bank that is big enough to cause a global panic were it to get into trouble, we should take him seriously on this point. Perhaps we should even regard his words as signaling a willingness to take the kind of risks that threaten to bring down the financial system — and would force the U.K. government, and perhaps others, to step in with rescue packages.
It isn’t by chance that some version of Sands’ words can be heard from almost every executive at a “too big to fail” global bank: They want to be able to take more risks precisely because they can draw on implicit or explicit government guarantees. When these companies increase their loss-absorbing equity to reduce their leverage, as Deutsche Bank AG and Barclays Plc are now being pressured to do, executives scream about how this will hurt the real (read: nonfinancial) economy.”
“Summers, on the other hand, while he often expresses unconventional views when not in office, has a strong tendency to revert to conventionality when in office. And leaving Summers the person on one side, just think of the historical connections: can you imagine a stronger signal that the same old regime is staying in place than choosing a Robert Rubin protege at this late date?
So the apparent decision to appoint Summers is a strong anti-regime-shift signal on Obama’s part.”
‘Jumbo’ Mortgage Rates Fall Below Traditional Ones – WSJ.com
“The average 30-year fixed-rate conforming mortgage was at 4.73% last week, according the Mortgage Bankers Association, compared with 4.71% for the average jumbo 30-year fixed-rate mortgage.
Executives say the inversion in the so-called spread, or difference, between jumbo and conforming loans is unprecedented.”
Once-Hot Indonesia Loses Allure as Prices Chill Buyouts – Bloomberg
“Indonesia has lost much of its allure for private equity as steep valuations restrain buyouts in a country that two years ago was, in the words of one investor, “probably the sexiest destination in the emerging markets.”
International private-equity firms have acquired stakes in four Indonesian companies this year, down from 10 in 2011 and seven last year, according to data compiled by Bloomberg and the Asian Venture Capital Journal. Total transaction values fell from $649 million for the nine deals in 2011 where terms were disclosed to $324 million for the six deals last year for which prices were available, the data show.”
Germans Hide Cash in Diapers as Swiss Secrecy Crumbles – Bloomberg
“We had a 72-year-old man wearing a woman’s corset with 150,000 euros stuffed inside,” said Markus Ueckert, a spokesman for the German customs district of Loerrach, one of the three that border Switzerland. “In another instance, a man had on two incontinence diapers with nearly 140,000 euros in between.”
Pimco Total Return Fund Lost 14% of Assets in Four Months – Bloomberg
Rotation out of bonds is part of this.
“Bill Gross’s $251 billion Pimco Total Return Fund (PTTRX) dropped more than $41 billion, or 14 percent of its assets, in the past four months through losses and investor withdrawals. The fund suffered $7.7 billion in net redemptions in August, Chicago-based researcher Morningstar Inc. (MORN) said today in an e-mailed statement, the fourth straight month of withdrawals and the second highest amount this year. “
Sprint Raises $6.5 Billion in Biggest Junk Sale Since 2008 – Bloomberg
“Sprint Corp. (S) raised $6.5 billion yesterday in the biggest high-yield offering since 2008 as sales of speculative-grade securities surpass last year’s record pace.
Sprint’s $4.25 billion of 7.875 percent, 10-year notes priced to yield 498 basis points more than similar-maturity Treasuries and its $2.25 billion of 7.25 percent, eight-year debt pays a spread of 466 basis points, according to data compiled by Bloomberg.”
India April-June Economic Growth Slows – WSJ.com
“GDP Expands 4.4% During April-June Quarter, Misses 4.6% Forecast”
Brazil’s Growth Picks Up Pace – WSJ.com
“Brazil’s economy expanded by 3.3% in the second quarter from the year-earlier period, and was up a solid 1.5% from the first quarter, the Brazilian Institute of Geography and Statistics reported.
The result was in large part attributed to a rise in the agriculture sector, thanks to a record harvest. Brazil’s National Confederation of Agriculture said it expects a good result in the third quarter, with significant growth in the collection of sugar cane, corn, beans and wheat.”
“The data add to evidence elsewhere that property markets are recovering. In both Sydney and Melbourne, the number of sales of houses at auctions have risen to record levels in recent months, according to research firm Australian Property Monitors, which publishes weekly statistics.
Meanwhile, the average price of houses in the capital cities of Australia’s states and territories has surged 7% since the market bottomed out around the middle of last year, a nongovernment survey showed Monday.”
Euro-Zone Manufacturing Recovery Broadens – WSJ.com
“Signs of growth in the factory sector of the euro zone’s weaker members suggests the 17-nation economy is picking up further in the third quarter, following a return to growth in the second quarter that was driven almost entirely by the two biggest economies, Germany and France. “
“The ISM’s manufacturing purchasing managers index rose to 55.7 in August, the highest level since a 55.8 reading in June 2011. Readings above 50 indicate expansion. The increase from July’s 55.4 level was powered in part by new orders, which climbed to their strongest reading since April 2011.”
“The U.S. auto industry has shifted into high gear with new-car buyers snapping up vehicles last month at a pace not seen since before the financial crisis.
Low interest rates and slow-but-steady job growth are encouraging consumers to trade in cars and trucks that average about 11 years old, say auto makers, which are adding production capacity and overnight shifts to satisfy demand. “
Escalation Rhetoric, in Six Simple Steps – James Fallows – The Atlantic
“Thanks to a reader who pointed me a two-year-old article by Eric Martin that has surprising modern relevance. It’s about the predictable stages of pro-intervention rhetoric.”
NSA Laughs at PCs, Prefers Hacking Routers and Switches | Threat Level | Wired.com
“The NSA’s focus on routers highlights an often-overlooked attack vector with huge advantages for the intruder, says Marc Maiffret, chief technology officer at security firm Beyond Trust. Hacking routers is an ideal way for an intelligence or military agency to maintain a persistent hold on network traffic because the systems aren’t updated with new software very often or patched in the way that Windows and Linux systems are.
“No one updates their routers,” he says. “If you think people are bad about patching Windows and Linux (which they are) then they are … horrible about updating their networking gear because it is too critical, and usually they don’t have redundancy to be able to do it properly.””
Improve Your Facebook, Google & LinkedIn Privacy With AVG PrivacyFix
“AVG has always been pretty active on Android, with AVG Uninstaller coming out just a couple of months back, but this time the online security company has come up with an offering for both Android and iOS. AVG PrivacyFix is an app that can help a lot of users who aren’t exactly tech-savvy, but are still concerned about their privacy. Much like the previously covered Permissions app for iPhone, PrivacyFix tries to make your personal accounts more secure by scanning their privacy settings, and then suggesting appropriate changes. “
“Social analytics firm Topsy today announced the launch of its new search engine for tweets. The company claims to have indexed every one of the 425 billion tweets sent since Twitter launched in 2006, so it’s simple to instantly trace the origins of #FollowFridays, or check out the public’s reaction to Obama’s election. Once you type in a query, you can adjust your results by date, time, content type (photos or videos), and language.
In the absence of an official solution from Twitter, Topsy’s free search engine will be vital for journalists, researchers, social media gurus, and even Twitter itself. The company used Topsy to help gather the most buzzed-about Oscar nominees. So why doesn’t Twitter have its own search engine? That’s not entirely clear, though the company has demonstrated its desire to make your personal tweet history a bit more transparent.”
“Stephen Elop, already a bookmakers’ favourite to take over as Microsoft’s next leader, just boosted his chances by helping orchestrate the US$7.2 billion deal that makes him a senior executive at the software maker he once helped run.
The 49-year-old Canadian, who has been chief executive at Nokia for three years, will move back to Microsoft as it buys the Finnish company’s mobile-phone unit.
The one-time head of the software maker’s business division returns with experience competing head-on in mobile devices against Apple and Google.”
“Rupiah forwards fell to a four-year low on concern government measures to tackle inflation will weigh on the trade deficit, which reached a record in July.
Indonesia scrapped import quotas for beef, chillies and shallots to restrain consumer-price gains, the Jakarta Globe reported yesterday, citing Trade Minister Gita Wirjawan. The trade shortfall surged to $2.3 billion as purchases from overseas increased 6.5 percent and exports fell for a 16th month, official data showed this week. Inflation accelerated to 8.79 percent in August, the fastest since January 2009. “
“The latest Snowden document is the US intelligence “black budget.” There’s a lot of information in the few pages the Washington Post decided to publish, including an introduction by Director of National Intelligence James Clapper. In it, he drops a tantalizing hint: “Also, we are investing in groundbreaking cryptanalytic capabilities to defeat adversarial cryptography and exploit internet traffic.”
Honestly, I’m skeptical. Whatever the NSA has up its top-secret sleeves, the mathematics of cryptography will still be the most secure part of any encryption system. I worry a lot more about poorly designed cryptographic products, software bugs, bad passwords, companies that collaborate with the NSA to leak all or part of the keys, and insecure computers and networks. Those are where the real vulnerabilities are, and where the NSA spends the bulk of its efforts.”
Former Senior White House Official On Larry Summers Nomination: ‘It Really Does Need To Be Stopped’
“A former senior White House official who worked closely with Larry Summers is worried that his brusque manner would make him unable to govern the Federal Open Market Committee, and questions the wisdom of naming him chairman of the Federal Reserve, a role that may not play to his strengths.”
“In the years since the Oscar-winning documentary An Inconvenient Truth and the Nobel Peace Prize that followed made Gore the No. 1 climate change advocate in the world, the activist group he created with his fame has been steadily shrinking, as has its once-lofty mandate: to create a new nonpartisan global movement around climate change.
The numbers, according to a review of the nonprofit’s tax filings, show the change has been severe. In 2009, at its peak, Gore’s group had more than 300 employees, with 40 field offices across 28 states, and a serious war chest: It poured $28 million into advertising and promotion, and paid about $200,000 in lobbying fees at the height of the cap-and-trade energy bill fight on Capitol Hill.
Today, the group has just over 30 people on staff and has abandoned its on-the-ground presence — all of its field offices have since shut down — in favor of a far cheaper digital advocacy plan run out of Washington.”
Which US President Was The Biggest Psychopath? — PsyBlog
Mesut Özil Sold to Arsenal for 50M€: Analysis of A Good Move for Real Madrid – Managing Madrid
I think the Özil sale will be a disaster but here is a little something from the other side.
“This post’s intention is not to offend Mesut Özil’s fans. This is just the author’s opinion on why Real Madrid completed a good move by selling him for 50M€. If you don’t agree with the arguments stated, please try to answer them with more arguments in a respectful way.”
100,000 kg of dead fish scooped from polluted river in China | Toronto Star
“Authorities have scooped up around 100,000 kilograms (220,000 pounds) of dead fish they say were poisoned by ammonia from a chemical plant, environmental officials and state media said Wednesday, in a reminder of the pollution plaguing the country.
The Hubei province environmental protection department, notified of the piles of dead fish in central China’s Fuhe River on Monday, pointed the finger at local company Hubei Shuanghuan Science and Technology Stock Co. Officials said sampling of its drain outlet showed that ammonia density far exceeded the national standard. The company said it wasn’t going to immediately comment.”
Brazil is now offering police protection to journalist Glenn Greenwald because of the Snowden case
Larry Summers and the closing of the Obama mind
“Summers is, in the broader world, a lightning rod for controversy. But inside the Obama administration’s economic team, he enjoys universal support. This suggests that the economic team around Obama is intellectually closed”
“India may well be facing its worst economic crisis since the 1990s and confidence is worryingly low. To make matters worse, on Friday the government announced the weakest economic growth data in four years with GDP expansion down to 4.4 per cent in the three months to June.”
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