Friday, December 12, 2008

A US$14 billion bailout package deal for the “Big Three” United States automakers — Chrysler, Ford, and General Motors — has been rejected in the United States Senate after failing a procedural vote.

The bill was rejected after bipartisan discussions on the bailout broke down when Republican Party leaders insisted that the United Auto Workers (UAW) union agree to increase wage cuts by next year in order to bring their pay into line with those of Japanese automobile companies in the United States. The UAW refused to meet the demands.

The final vote count in the Senate was 52-35, eight short of the 60 needed to pass. Only ten Republicans joined forty Democrats and two independents in voting for the bill. Three Democrats voted with thirty-one Republicans against it.

Senate Majority leader Harry Reid said that he was “terribly disappointed” by the failure of the bill to pass. “I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight,” Reid said. “Millions of Americans, not only the auto workers but people who sell cars, car dealerships, people who work on cars are going to be directly impacted and affected.”

Republican Senator Bob Corker was also unhappy about the rejection. “We were about three words away from a deal. We solved everything substantively and about three words keep us from reaching a conclusion,” he said.

Some Democrats now want U.S. President Bush to reserve a portion of the $700 billion bailout package earmarked for Wall Street to assist the flagging car industry.

Stock markets worldwide fell dramatically on the news, with Japan’s Nikkei average losing 484.68 points, or 5.6 percent, reaching a level of 8253.87 points. Shares in the auto companies Toyota, Nissan and Honda all dropped by no less than 10 percent apiece. European stocks, such as those in the United Kingdom and Germany, also lost ground, with the FTSE-100 index of leading shares falling 176.3 points to a level of 4,211 at midday.

Sunday, April 27, 2008

Recently released figures have revealed that the number of foreclosures in California, United States has more than quadrupled. The figures for the first quarter of 2008 show a significant increase on previous figures.

There were 47,171 foreclosures on California properties in the first quarter of 2008. The figure for the same period last year was just over 10,000.

The Attorney General of Arizona released a report that showed an increase. It said that “the collective efforts of servicers and government officials to date have not translated into meaningful improvement in foreclosure prevention outcomes.” The Attorney General also commented on the report:

Thursday, July 31, 2008

At least eight people have been killed in a plane crash near the southern Minnesota town of Owatonna, the Associated Press and local media reported Thursday morning.

One person, who had been listed in critical condition as of 11:40 a.m. in the Owatonna hospital has died from injuries sustained in the accident, the Associated Press reported just before 3:00 p.m. that afternoon. At least one person is unaccounted for while investigator determine whether the person boarded the plane in New Jersey, according to the Steele County Sheriff’s Office.

Star Tribune reported that charter flight 81, a Raytheon BAE 125-800A commercial jet, had not landed properly on the 5,500 foot runway at Owatonna Degner Regional Airport just after 9:30 a.m local time en route from Atlantic City, New Jersey. The plane either tried to take off or could not stop in time.

The plane was owned by East Coast Jets Inc. of Allentown, Pennsylvania. Aviation Research Group told the Star Tribune that East Coast Jets operates 11 aircraft — Hawker and Lear jets — and employs 21 pilots.

“They have a good safety history,” ARG President Joe Moeggenberg told the Star Tribune, based on federal data. “There were no recent incidents.”

This model of aircraft “has a very good safety record; been around along time,” said Gary Robb, aviation expert and attorney with a Kansas City law firm that represents aviation crash victims.

Gary Robb, an aviation expert and attorney told the Star Tribune that the aircraft “has a very good safety record [and has] been around along time.”

According to the Star Tribune, the pilots have been identified as Clark Keefer of Bethlehem, Pennsylvania, and Dan D’Ambrosio of Hellertown, Pennsylvania. Pilot error has not been identified as a cause for the crash, but investigators caution it is to early for any conclusions to be made.

Graphics released by the Star Tribune show that the plane ended up past the runway it was attempting to land on. The Associated Press reports that debris was scattered 500 feet beyond the runway.

The bodies have been taken to Rochester for examination, while the plane’s data recorders have been flown to Washington, DC.

Both WCCO-TV and the Star Tribune report that the time of the crash coincided with a line of storms moving through the area, though what effect, if any the storm had, is under investigation. Witnesses told the Star Tribune that the worst of the storm had gone at the time of the crash and only light wind and rain remained. The Associated Press confirms from the National Weather Service that “the storms were subsiding at the time of the crash.”

Owatonna resident John Billingsly, a retired pilot who worked at the airport for many years, told the Star Tribune, “I saw the plane making its final approach, and it appeared nothing was wrong. We’d just had a lot of wind, but it had calmed down a bit and mostly subsided by that time.”

The plane, a charter for Viracon, Inc. of Owatonna, was flying customers from “a couple of different companies” to discuss a $2 billion dollar casino and hotel project in Las Vegas, Nevada that Revel Entertainment is building. Atlantic City Mayor Scott Evans told the Associated Press that two high-level employees for Revel and an employee of Tishman Construction. Viracon is an architectural glass fabricator and Tishman is assisting Revel.

As of 5:00 a.m Friday, five of the victims, including the two pilots, have been identified by the Associated press.

APG International, a company specializing in glass facades, lost two executives: Marc Rosenberg, the chief operating officer, and Alan Barnett, an assistant project manager, according to the Glassboro, N.J. company’s spokeswoman Amelia Townsend.

The Tishman empoyee, the only victim identified, was project manager Karen Sandland, 44, based in Newark, New Jersey company spokesman Bud Perrone told the Associated Press.

The Revel employee’s idenities were released by the Star Tribune Friday, they are: Tony Craig, 50, of Brigantine, N.J., vice president of construction development; Chris Daul, 44, of Northfield, N.J., vice president of construction development; and Lawrence (Chip) Merrigan, 62, of Absecon N.J., director of field operations.

The crash is the deadliest in Minnesota since October 2002, when Minnesota Senator Paul Wellstone and seven others died after their chartered twin-engine plane crashed in the woods near Eveleth, in Northern Minnesota, according to the Star Tribune.

The National Transportation Safety Board (NTSB), an independent agency responsible for investigation of accidents involving aviation, highway, marine, pipelines and railroads in the United States (except aircraft of the armed forces and the intelligence agencies), will be investigating the crash.

The NTSB reported Friday through the Star Tribute that the agency has 14 investigators working on the crash, with assistance from the FBI.

The NTSB reports two other fatal accidents since 1962 at Owatonna airport. A crash in 1992 killed one and injured another and a crash in 2004 killed four people.

Thursday, January 26, 2012

Germany’s Chancellor Angela Merkel gave yesterday’s opening address to the 42nd meeting of the World Economic Forum (WEF), which is facing a distinctly different geo-political landscape from twelve months ago. Outside the WEF security cordon, in the sub-zero temperatures of Davos’ train station car park, the local incarnation of the Occupy movement are setting up ‘Camp Igloo’; but, with little hope of the archetypes of the 1%, ‘Davos Man’, arriving by public transport and seeing their sub-zero protest.

David Roth, heading the Swiss centre-left’s youth wing — and an organiser of ‘Camp Igloo’, echoes much of the sentiment from ‘Occupy’ protests around the world; “[a]t meetings the rest of society is excluded from, this powerful ‘1 percent’ negotiates and decides about the fate of the other 99 percent of this world, […] economic and financial concentration of power in a small, privileged minority leads to a dictatorship over the rest of us. The motto ‘one person, one vote’ is no longer valid, but ‘one dollar, one vote’.”

Roth’s characterisation of ‘Davos Man’, a term coined by the Professor Samuel Huntington of Harvard University, is more emotive than that of the late professor who saw ‘Davos man’ as “[having…] little need for national loyalty, view[ing] national boundaries as obstacles that thankfully are vanishing, and see[ing] national governments as residues from the past whose only useful function is to facilitate the elite’s global operations”.

As Reuters highlights, many attendees will opt to make their way from Zurich to Davos by private jet, or helicopter, and the WEF itself provides handouts indicating the cost of such is 5,100 Swiss francs (approx. 5,500 USD, 3,500 GBP, 4,200 EUR). In contrast: travelling by rail, even when opting for first class — without an advance booking, is 145 Swiss francs (approx. 155 USD, 100 GBP).

Shifting fortunes see several past attendees missing this year’s exclusive get-together in the alpine resort; for a second year running — and now caught up in the UK phone hacking scandal being scrutinised by Lord Leveson’s inquiry — media mogul Rupert Murdoch will not be attending. Nor will the former head of financial services company UBS Oswald Gruebel, who resigned in the wake of US$2.3 billion losses incurred through unauthorised trading; likewise, Philipp Hildebrand, the ex-head of the Swiss National Bank, is absent following scandal associated with his wife’s currency trading activities; and, although the sexual assault charges against Dominique Strauss-Kahn were dropped, having stepped down as managing director of the International Monetary Fund Strauss-Kahn will also be absent.

As the #OccupyWEF protesters were building igloos last weekend, an anti-WEF protest in the Swiss capital Berne was broken up by police, who stated their intent to prosecute participants in the illegal protest. Allegations of calls for violent protest action led to a high number of officers being involved. In the aftermath, charges of breach of the peace are to be brought against 153 people, with some targeted for more serious offences. At least one group involved in the protest described the police response as “disproportionate”.

At ‘Camp Igloo’ Roth says he is seeking discussions with the WEF’s expected 2,000 attendees; but his voice, and that of others in the worldwide ‘Occupy’ movement, is unlikely to be given a platform in the opening debate, “Is 20th-century capitalism failing 21st-century society?” He, and others taking part in this Swiss incarnation of the ‘Occupy’ movement, are still considering an invite to a side-session issued by the World Economic Forum’s founder, Klaus Schwab; commenting on the invite Roth told the Associated Press they would prefer a debate at a more neutral venue.

As has been the case for several years now, the annual Forum meeting in Davos was preceded with the release of a special report by the World Economic Forum into risks seen as likely to have an impact the in the coming decade. The 2012 Global Risks Report is a hefty document; the 64-page report is backed with a variety of visualisation tools designed to allow the interrelations between risks to be viewed, how risks interact modelled, and their potential impacts considered — as assessed by the WEF’s panel of nearly 500 experts.

As one would expect, economic risks top both the 2012 impact and likelihood charts. Climate change is pushed somewhat further down the list of concerns likely to drive discussions in Davos. “Major systemic financial failure” — the collapse of a globally important financial institution, or world currency, is selected as the risk which carries the most potential impact.

However, “Chronic fiscal imbalances” — failing to address excessive government debt, and “Severe income disparity” — a widening of the the gulf between rich and poor, top the list of most likely risks.

At the other end of the tables, disagreeing respectively with the weight last year’s Wikinews report gave to orbital debris, and the Motion Picture Association of America’s (MPAA) fight with the Internet over copyright legislation, the 2012 Global Risks Report places “Proliferation of Orbital Debris” and “Failure of intellectual property regime” bottom of the league in terms of potential impact.

In 2011, with the current global economic crisis well under-way, “Fiscal crises” topped the WEF risks with the largest potential impact in the next ten years. However, perceived as most likely a year ago, “Storms and cyclones”, “Flooding”, and “Biodiversity loss” — all climate-change related points — were placed ahead of “Economic disparity” and “Fiscal crises”.

More mundane risks overtake the spectre of terrorism when contrasting this year’s report with the 2011 one; volatility in the prices of commodities, consumer goods, and energy, and the security of water supplies are all now ranked as more likely risks than terrorism — though the 2011 report did rank some of these concerns as having a higher potential impact. A significant shift in perception sees the 2012 report highlight food shortages almost as likely a risk the world will face over the next decade; and, one with a far more significant impact.

Attending the World Economic Forum at Davos is more than just an opportunity to discuss the current state of the global economy, and review the risks which face countries around the world. With such a high number of political and business leaders in attendance, it is an ideal opportunity to pursue new trade deals.

Canadian Prime Minister Stephen Harper is, in addition to being a keynote speaker, expected to pursue improved relations with European and Asian trade partners at private meetings on the Forum sidelines. The Toronto Star reports Harper is likely to push forward an under-negotiation Canadian-European free-trade agreement, and hold closed-door discussions prior to next month’s planned trip to China.

Similarly, Canadian trade minister Ed Fast is expected to meet South Korean counterparts to discuss an equivalent deal to the preferential ones between the Asian nation and the US and Europe. Fast’s deal does, however, face opposition at home; the Canadian Auto Workers union asserts that such a deal would put 33,0000 jobs at-risk.

British Prime Minister David Cameron and chancellor George Osborne are expected to discuss a possible increase of UK funding to the International Monetary Fund (IMF); however, with the UK responsible for 4.5% of the US$400 billion in the IMF’s lending fund, backbench MPs have warned that committing any additional funds could provoke a Conservative revolt in parliament. Tuesday’s IMF cut of predicted global growth from 4% to 3.3%, warnings of a likely Eurozone recession in 2012, and ongoing problems with Greek financial restructuring, are likely discussion topics at Davos — as well as amongst UK backbench MPs who see adding to the IMF war-chest as bailing out failed European economies.

South Africa, less centre-stage during the 2011 Forum, will be looking to improve relationships and take advantage of their higher profile. President Jacob Zuma and several cabinet members are attending sessions and discussions; whilst former UK Prime Minister Gordon Brown is to moderate a session, “Africa — From Transition to Transformation“, with Nigeria, Guinea, and South Sudan’s presidents on the panel. Wal-mart’s CEO Doug McMillon is to lead a dinner session, “Shared Opportunities for Africa’s Future” — highlighting larger multinationals looking towards the continent for new opportunities.

Davos may also serve as a place to progress disputes out of the public eye; a high-profile dispute between Chile’s state-owned copper mining business, Codelco, and Anglo American plc over the 5.39 billion USD sale of a near-quarter stake in their Chilean operations to Japan’s Mitsubishi, prompted the Financial Times to speculate that, as the respective company chiefs — Diego Hernández and Cynthia Carroll — are expected to attend, they could privately discuss the spat during the Forum.