Shocker from Ernst & Young's new Global Fraud Survey: 15% of CFOs worldwide are willing to make cash payments to win or retain business. E&Y says companies are talking the talk but not walking the walk: “Even if management is strongly communicating that bribery and corruption isn’t OK, they don’t ever see anyone being punished for that.” [View news story]
You mean only 15% are honest enough to admit it? Is there a difference between a cash payment and a bottle of booze or some other gratuity? How about a contractor doing some free work for a bureaucrat who gives out government contracts. I guess just giving cash is so unimaginative.
The proposed Keystone XL pipeline would raise U.S. gasoline prices, according to the National Resources Defense Council: The pipeline would divert crude oil from the U.S. Midwest to Gulf Coast refineries geared to producing diesel fuel for export, which would reduce gasoline produced for U.S. consumers and raise production costs, making the fuel more expensive. [View news story]
Southwest Airlines (LUV -1.1%) strikes an agreement with Delta Air Lines (DAL +0.1%) to lease the company 88 Boeing 717s after deciding it didn't need the jets acquired in its purchase of Airtran. The deal could be a win-win, with Delta able to update its aging fleet and Southwest cutting back costs by only flying 737s. [View news story]
Southwest is one smart operation. Kelleher gave it good guidance.
Eaton's (ETN) proposed incorporation in Ireland once its completes its $11.8B acquisition of Cooper (CBE) will allow the combined company to enjoy the country's 12.5% corporate tax rate, saving $160M a year. Eaton will follow seven other U.S. companies that in recent months have renounced their U.S. corporate citizenship through relocation. [View news story]
J_Ranch
Did you mean Obama's outrage? The whole thing boils down to the U.S. wanting to tax worldwide income of U.S. domiciled multinationals instead of being satisfied with taxing only their U.S. earnings. Nestle, Schlumberger, and other foreign based multinationals don't have this problem with their home countries. Eaton will still be paying U.S. taxes on its U.S. profits (if there are any).
Germany will tomorrow auction bonds with a zero coupon for the first time, underscoring its status as the ultimate safe haven despite the chaos that surrounds it. Germany plans to sell €5B ($6.41B) of two-year notes as investors seek merely "the return of capital rather than the return on capital." [View news story]
'Zero coupon' and 'investors' are hard to reconcile in the same paragraph.
More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [View news story]
My realtor friends say it is still very slow. Our unemployment rate was reported this morning at 5.3%. Best in the area.
The language is couched in diplomat-speak, but the "clear aim" of Hollande, Monti, and Rajoy "is to wrest control of the EU's governing machinery from Germany," writes Ambrose Evans-Pritchard. Giles Merritt speaks of an "ugly mood" in the EU corridors of power. "(Merkel and the Germans) are beginning to understand how deeply unpopular they have become and how little time they have to act." [View news story]
Amidst slow sales and mass overcapacity, no European automaker wants to be the first to shut a plant. Unlike in the U.S., EU automakers were under no pressure to restructure in exchange for bailout money. Four years later, all but the luxury brands are under pressure, with 30% rebates in Germany and Italy an all-time high. GM has lost money in Europe for 12 consecutive years. [View news story]
"GM has lost money in Europe for 12 consecutive years. "
Thoughts From The Front Line: Dr. Frankenstein's Europe [View article]
"with some real leadership types stepping up and forming a third party alternative"
You mean like Ross Perot? We've been down that path and it doesn't work. Get active in politics at the local level and you will influence where your tax money is spent as well as identifying the candidates you can live with.
A Bloomberg review of Chesapeake's (CHK) filings paints a picture of cronyism and nepotism that calls into question the objectivity of its board. Since 2009, Chesapeake has paid $343M to a drilling equipment manufacturer headed by Chesapeake lead director Pete Miller. The company has also employed another director’s relatives and donated millions to a university overseen by a third. [View news story]
Is this any different than most companies? People get on boards through their connections and to further their own ambitions. Of course there is back scratching. In most cases, the interests of the board align with the shareholders as both want a successful company. But, just as politicians attempt to get government grants for their pet projects, (Obama just got one through for his University of Chicago connections), board members are going to favor their associates. If there is something criminal, get the facts and prosecute.
The Final Nails In The Dot-Com Coffin: Facebook And Apple [View article]
"Facebook is not ...offering a (more or less) essential or important service."
Since my wife opened our Facebook account, I have been amazed at the amount of trivia that shows up from our 'friends'. While this is wonderful for a certain mentality, for others it will get to be time wasting nonsense and will pass as other fads have. Citizen Band radios anyone? Breaker, breaker. But something else will take its place.
Thoughts From The Front Line: Dr. Frankenstein's Europe [View article]
What is the impact of the Euro's problems on non-member European countries such as Poland and Russia? Would it have a positive or negative effect on their currencies values?
The Seaway pipeline yesterday started to transport crude oil from Cushing in Oklahoma to refineries in Huston following the completion of a reversal project. The new direction of the pipeline, which is owned by Enterprise (EPD) and Enbridge (ENB), should help ease the glut of crude at Cushing and reduce the spread between WTI and Brent prices. [View news story]
And this was all done without the government's supervision or direction. Gee, you would think the Department of Energy would have stuck their nose in it someway.
Shocker from Ernst & Young's new Global Fraud Survey: 15% of CFOs worldwide are willing to make cash payments to win or retain business. E&Y says companies are talking the talk but not walking the walk: “Even if management is strongly communicating that bribery and corruption isn’t OK, they don’t ever see anyone being punished for that.” [View news story]
The proposed Keystone XL pipeline would raise U.S. gasoline prices, according to the National Resources Defense Council: The pipeline would divert crude oil from the U.S. Midwest to Gulf Coast refineries geared to producing diesel fuel for export, which would reduce gasoline produced for U.S. consumers and raise production costs, making the fuel more expensive. [View news story]
Southwest Airlines (LUV -1.1%) strikes an agreement with Delta Air Lines (DAL +0.1%) to lease the company 88 Boeing 717s after deciding it didn't need the jets acquired in its purchase of Airtran. The deal could be a win-win, with Delta able to update its aging fleet and Southwest cutting back costs by only flying 737s. [View news story]
Eaton's (ETN) proposed incorporation in Ireland once its completes its $11.8B acquisition of Cooper (CBE) will allow the combined company to enjoy the country's 12.5% corporate tax rate, saving $160M a year. Eaton will follow seven other U.S. companies that in recent months have renounced their U.S. corporate citizenship through relocation. [View news story]
Did you mean Obama's outrage? The whole thing boils down to the U.S. wanting to tax worldwide income of U.S. domiciled multinationals instead of being satisfied with taxing only their U.S. earnings. Nestle, Schlumberger, and other foreign based multinationals don't have this problem with their home countries. Eaton will still be paying U.S. taxes on its U.S. profits (if there are any).
Germany will tomorrow auction bonds with a zero coupon for the first time, underscoring its status as the ultimate safe haven despite the chaos that surrounds it. Germany plans to sell €5B ($6.41B) of two-year notes as investors seek merely "the return of capital rather than the return on capital." [View news story]
More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [View news story]
The language is couched in diplomat-speak, but the "clear aim" of Hollande, Monti, and Rajoy "is to wrest control of the EU's governing machinery from Germany," writes Ambrose Evans-Pritchard. Giles Merritt speaks of an "ugly mood" in the EU corridors of power. "(Merkel and the Germans) are beginning to understand how deeply unpopular they have become and how little time they have to act." [View news story]
Amidst slow sales and mass overcapacity, no European automaker wants to be the first to shut a plant. Unlike in the U.S., EU automakers were under no pressure to restructure in exchange for bailout money. Four years later, all but the luxury brands are under pressure, with 30% rebates in Germany and Italy an all-time high. GM has lost money in Europe for 12 consecutive years. [View news story]
That's o.k. We'll bail 'em out again.
Thoughts From The Front Line: Dr. Frankenstein's Europe [View article]
You mean like Ross Perot? We've been down that path and it doesn't work. Get active in politics at the local level and you will influence where your tax money is spent as well as identifying the candidates you can live with.
A Bloomberg review of Chesapeake's (CHK) filings paints a picture of cronyism and nepotism that calls into question the objectivity of its board. Since 2009, Chesapeake has paid $343M to a drilling equipment manufacturer headed by Chesapeake lead director Pete Miller. The company has also employed another director’s relatives and donated millions to a university overseen by a third. [View news story]
Thoughts From The Front Line: Dr. Frankenstein's Europe [View article]
The tax cuts only applied to taxpayers. The 50% that didn't pay taxes had to receive tax credits since they had no tax to cut.
The Final Nails In The Dot-Com Coffin: Facebook And Apple [View article]
Since my wife opened our Facebook account, I have been amazed at the amount of trivia that shows up from our 'friends'. While this is wonderful for a certain mentality, for others it will get to be time wasting nonsense and will pass as other fads have. Citizen Band radios anyone? Breaker, breaker. But something else will take its place.
Thoughts From The Front Line: Dr. Frankenstein's Europe [View article]
U.S. Economy: Why The Looming Fiscal Cliff Matters [View article]
The Seaway pipeline yesterday started to transport crude oil from Cushing in Oklahoma to refineries in Huston following the completion of a reversal project. The new direction of the pipeline, which is owned by Enterprise (EPD) and Enbridge (ENB), should help ease the glut of crude at Cushing and reduce the spread between WTI and Brent prices. [View news story]