Saturday, July 27, 2013

S&P cuts Iceland outlook to negative from stable

(Reuters) - Standard & Poor's Ratings Services on Friday revised the outlook on the Republic of Iceland's long-term ratings to negative from stable and warned it could cut the rating if government plans to forgive household debt greatly worsens the finances.

The agency also affirmed its BBB-/A-3 long- and short-term foreign and local currency sovereign credit ratings on the country.

"The negative outlook reflects that we could lower the ratings over the next two years if household debt forgiveness substantially worsens Iceland's fiscal ratios or weakens our assessment of the effectiveness and predictability of policymaking," S&P said in a statement.

The agency added that the ratings could stabilize at the current level if the scope of debt relief was limited, the cost to the state was contained, and the mode of financing did not, in its view, deter investment into the Icelandic economy.

(Reporting by Wayne Cole)

Source: http://news.yahoo.com/p-cuts-iceland-outlook-negative-stable-050300356.html

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Friday, July 26, 2013

US indicts SAC Capital Advisors on fraud charges, but not owner Steven A. Cohen

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5 hours ago

One of the largest-ever insider trading cases took a giant step forward Thursday, when a federal grand jury indicted Steven A. Cohen's hedge fund SAC Capital Advisors on fraud charges.

The hedge fund was charged with wire fraud as well as four counts of securities fraud, and the government is seeking to force SAC to surrender any fraud-related profits. The charges could undermine one of Wall Street's top stock trading firms, although they do not touch founder Steven A. Cohen.

The Securities and Exchange Commission recently filed civil charges against Cohen for what it said was a failure to adequately supervise the people at his firm. Last week a spokesman for Cohen said the SEC charges have no merit.

"SAC has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously. The handful of men who admit they broke the law does not reflect the honesty, integrity and character of the thousands of men and women who have worked at SAC over the past 21 years. SAC will continue to operate as we work through these matters,? said an emailed statement from SAC Capital.

According to the indictment from roughly 1999 to 2010, SAC obtained and traded on inside information to boost returns and fees and that the scheme involved a number of portfolio managers, research analysts and dozens of publicly traded companies.

The government is also seeking to force SAC to surrender any fraud-related profits.

The criminal charges said SAC's "relentless pursuit of an information 'edge' fostered a business culture within SAC in which there was no meaningful commitment to ensure that such 'edge' came from legitimate research and not inside information."

It added: "The predictable and foreseeable result, as charged herein, was systematic insider trading by the SAC entity defendants resulting in hundreds of millions of dollars of illegal profits and avoided losses at the expense of members of the investing public."

The indictment said SAC carried out the insider trading scheme with a staff of numerous portfolio managers and research analysts "who engaged in a pattern of obtaining insider information from dozens of publicly-traded companies across multiple industry sectors."

It said SAC sought to hire portfolio managers and research analysts with proven access to public company contacts likely to possess inside information. The managers and analysts were then not questioned when they made trading recommendations that appeared to be based on inside information, the indictment said.

The problem was compounded when SAC on numerous occasions failed to use effective compliance procedures or practices designed to root out wrongdoing. The pursuit of a trading edge overwhelmed limited SAC compliance systems, prosecutors said.

U.S. Attorney Preet Bharara said at a news conference that SAC was "a magnet for market cheaters."

FBI Assistant Director George Venizelos said in a statement, "This is a case about corporate conduct and corporate responsibility. SAC Capital and its management fostered a culture of permissiveness. SAC not only tolerated cheating, it encouraged it."

The Associated Press contributed to this report.

Source: http://feeds.nbcnews.com/c/35002/f/663286/s/2f2629ae/sc/25/l/0L0Snbcnews0N0Cbusiness0Cus0Eindicts0Esac0Ecapital0Eadvisors0Efraud0Echarges0Enot0Eowner0Esteven0E6C10A74480A4/story01.htm

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Hayden Hired as Assistant Coach

CHAMPAIGN, Ill. - Fighting Illini swimming and diving head coach Sue Novitsky announced Wednesday the hiring of Alec Hayden as the new assistant swimming coach. Hayden comes to Illinois from William & Mary, where he spent one season as an assistant coach.?

"I am very excited to add Alec to the swimming and diving staff," Novitsky said.?"Alec will be a great representative for his home state and out recruiting.?He brings great enthusiasm and energy with his coaching and has had great success in developing elite athletes.?Alec has great technical knowledge and wants to keep learning more to help the student-athletes get faster.?He is a smart coach with a coaching philosophy consistent with mine, and I am looking forward to having him in the Illini family."

In just one season at William & Mary, Hayden was the primary coach for swimmers who accomplished four conference records, 32 school records, 20 freshman records and 10 NCAA B cuts. His only recruiting class with the Tribe was the best in program history and included the first top-100 recruit in program history.

At the Colonial Athletic Association Championships, he coached seven individual conference champions and three relay championship teams. Tribe swimmers took home co-Swimmer of the Meet, Rookie of the Year and Scholar-Athlete of the Year.?

"I'm very excited to be a new Illini," Hayden said. "There is so much talent on the team, and the school is one of the best institutions in the nation. I can't wait to get on the pool deck and see what we can accomplish."

Prior to joining the staff at William & Mary, Hayden served as the head senior coach for the Nasa Wildcat Aquatics team, which was comprised of 40 high school and eighth-grade swimmers. Under his tutelage, Wildcat swimmers set one national age group record and eight state records. He coached three swimmers who qualified for the 2012 U.S. Olympic Trials.

He coached four swimmers to a combined 14 state championships and also coached the 2011 50 freestyle USA Swimming Junior National runner-up. At the 2012 National Club Swimming Association Junior Nationals, he coached the Wildcat boys to an eighth-place national finish and the combined team to a 10th-place finish.

While working with the Nasa Wildcat Aquatics team, Hayden simultaneously worked as a volunteer assistant for Northwestern University. At Northwestern, Hayden worked with both the men's and women's programs, including work with an NCAA Championships finalist, two NCAA consolation finalists and five NCAA qualifiers.?

Hayden started his coaching career as an assistant senior coach with Nasa Wildcat Aquatics in April of 2008. Working primarily with the sprint groups, Hayden coached athletes who set one national age group record and 11 state records. He coached three individual state champions and the U.S. Open 100 butterfly runner-up.

As an athlete, Hayden was a four-year letter winner and two-year captain as a member of the Northwestern Wildcats swimming team from 2004-2008. Hayden was an All-American at New Trier High School, and he was also a team captain and four-year All-Conference honoree.

Hayden graduated from Northwestern in June 2008 with a B.A. in Mathematical Methods in the Social Sciences.?

Tags: Illinois Women's Swimming and Diving

Source: http://www.sportspagemagazine.com/content/os/sw-os/all-sw-os/ln-all-sw-os/hayden-hired-as-assistant-coach.shtml?57133

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Thursday, July 25, 2013

Bombing at Egyptian police station follows a day of violent clashes

A bomb killed one person and wounded 17 others at a police station north of Cairo early Wednesday morning, say officials.?About 100 people have died in violence since the army deposed Mohammed Morsi.

By Asma Alsharif and Ahmed Tolba,?Reuters / July 23, 2013

Supporters of ousted Egyptian President Mohamed Morsi walk near the mock grave of a protester who was killed during clashes in Giza on July 23. Six people were killed in Cairo on Tuesday in violence between supporters and opponents of Morsi, say state-run media.

Amr Abdallah Dalsh/Reuters

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A bomb exploded at a police station in a province north of Cairo early on Wednesday, killing one person and wounding 17 others, Health Ministry and security sources told Reuters.

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Unknown assailants threw the bomb from a passing car in Mansoura, the capital of Dakhalia province, two security sources said. A Health Ministry statement, issued shortly after the explosion, said 12 people were injured.

The bombing occurred after a day of clashes between opponents and Islamist supporters of Egypt's deposed president, Mohamed Morsi, killed nine people in Cairo.

The Muslim Brotherhood, which propelled Morsi to power in the country's first democratic elections in 2012, accuses the army of orchestrating a coup that has exposed deep political divisions in the Arab world's most populous nation.

Supporters of Morsi, who has been held in an unknown location since the army deposed him on July 3 following mass protests calling for his removal from power, have vowed to stay in the streets until he is reinstated.

About 100 people have died in violence since the army deposed Morsi and replaced him with an interim administration led by Adli Mansour, the head of the constitutional court. New elections are expected to be held in about six months.

In the latest bout of violence in the capital, two protesters were killed at a pro-Morsi march early on Wednesday after clashes in Cairo, a security source and the Muslim Brotherhood said in a statement on their website.

(Editing by Doina Chiacu and Stacey Joyce)

Source: http://rss.csmonitor.com/~r/feeds/csm/~3/XYQnqstTcw8/Bombing-at-Egyptian-police-station-follows-a-day-of-violent-clashes

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IMF fears Fed tapering could 'reignite' euro debt crisis

It should launch "credit-easing" policies to alleviate the deepening lending crunch in Spain, Italy, and Portugal, where borrowing costs for firms are 200 to 300 basis points higher than in Germany, with small businesses struggling to raise any money at all. The IMF said the more the Fed tightens in the US, the more the European authorities need to offset this with other forms of stimulus.

The report came as fresh data from the ECB showed that loans to the private sector contracted by ?46bn in June, after falling by ?33nbn in May , and ?28bn in April. The annual rate of contraction has accelerated to 1.6pc.

The M3 broad money supply is also fizzling out, with growth dropping to 2.3pc year-on-year. There has been almost no growth in M3 since October 2012.

The money data tends to act as an early warning indicator for the economy a year or so ahead, and therefore casts doubt on recent claims by EU leaders that the crisis is over.

"Today's figures put serious question marks over the strength of the nascent recovery," said Martin van Vliet from ING. The data is at odds with the recent rebound in industrial output and rising PMI survey indexes for manufacturing.

The IMF said the eurozone economy would shrink by 0.6pc this year, the same as in 2012. It is expected to grow by 0.9pc next year but this will not be enough to make a dent on unemployment, and could easily be thrown off course by a fresh global shock.

"There is a high risk of stagnation, especially in the periphery. Such an outcome could push the periphery toward a debt-deflation spiral," it said.

The report said that it may take years to unwind the colossal credit boom of the early EMU years. "Historically, almost all of the run-up in household debt tends to be reversed. But in the euro area, the reduction in debt-to-GDP ratios has barely started, and the boom was more pronounced."

"Furthermore, in past deleveraging episodes, the debt reversal was largely facilitated by high inflation and growth, and supported by expansionary fiscal policy. Because these factors will not contribute much to the ongoing deleveraging process in the euro area periphery, the adjustment is likely to be protracted and have to rely more on reductions in nominal debt. The contrast with history is similarly sobering when it comes to corporate debt," said the Fund, adding that the EMU periphery has the daunting task of triple deleveraging by governments, households, and firms all at the same time.

The Fund said it is crucial that the eurozone deliver on pledges from a proper banking union and resolution fund capable of "swift decisions on burden sharing".

While polite in tone, the authors appear exasperated by "incomplete or stalled delivery of policy commitments" and seemingly endless foot-dragging by EMU leaders.

"The hurdle for reaching a collective agreement is always high. Moreover, building political support for such decisions can take considerable time, especially when they involve thorny issues such as burden-sharing or ceding national control. Hence, making swift progress on completing the banking union and moving toward greater fiscal integration are proving exceedingly difficult."

In a comment clearly aimed at Germany and the key creditor powers, the IMF said "unwavering political backing for institutional reforms remains critical and is in the interest of all EMU members."

Source: http://telegraph.feedsportal.com/c/32726/f/568312/s/2f25316a/sc/2/l/0L0Stelegraph0O0Cfinance0Ceconomics0C10A20A22780CIMF0Efears0EFed0Etapering0Ecould0Ereignite0Eeuro0Edebt0Ecrisis0Bhtml/story01.htm

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Does A-Rod deserve a lifetime ban from baseball? Answer with #snysportsnite and...

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Mainframe Computers That Change With the Times - NYTimes.com

Even in computer hardware, everything old is new again.

I.B.M. on Tuesday formally launched its latest mainframe computer, a type of machine that has been around for 49 years, and has endured through minicomputers, microcomputers, personal computers, computer servers and lots else.

While the mainframe may be an enduring stalwart, the changes that come in this machine show how much the world has changed too, and probably not in a way that I.B.M. likes.

Most notably, the new machine, with the attractive name zEnterprise BC12, costs $75,000. That is a price cut of about 25 percent from the last model in this series of mainframes. To add more perspective, 10 years ago, before the zEnterprise series was around, Big Blue proudly launched a model called the Z990, or T-Rex, that started at $1 million. Prices went way up from there.

One could argue that this is a classic case of Moore?s Law making computing inexorably cheaper, but that isn?t how this market worked before. Mainframes got bigger and more powerful for decades, using the advances in semiconductors to make even more powerful and more expensive models. The past decade?s onslaught of cheap computer servers lashed together with virtualization and cloud software, however, made them formidable competitors for the work of mainframes. I.B.M. has had to respond by making the machines significantly cheaper.

This can be a strength for the product, or at least it can be made to look like one. I.B.M. says this low-priced machine still gives that mainframe security and reliability, and could eventually challenge the kind of server-based cloud computing models that have changed I.B.M.?s world.

?You can put the equivalent of 520 servers? into the BC12, said Patrick Toole, general manager of the product. ?Mainframes are enduring because they enable clients to consolidate computing into single machines.?

?We?re more tidy? didn?t used to be a sales point. But then, we didn?t used to have data centers with 100,000 servers in them, either.

Mr. Toole said the machines were particularly targeted at banking and telecommunications companies for functions like Big Data analytics and modeling retail sales programs. The hope is to install the products in emerging markets, where there aren?t as many server-based clouds. Since the zEnterprise line was introduced in 2010, he said, about 40 percent of the computers have gone to countries like China, South Africa, and nations of the Middle East.

There are fewer secure, wired local networks and more wireless transactions in these places, Mr. Toole said. ?The workloads in emerging economies fits our computer architecture,? he said. ?There are people on mobile phones creating a million transactions a day.?

I.B.M. may be retooling the mainframe for a new world of expanding clouds and emerging markets, but some things may not be changing. Once I.B.M. gets a mainframe customer, it can lock in a lot more software and services that can still mean profitability.

?Mainframes are still a rich revenue stream, and a potentially captive market,? said Jeffrey Hewitt, an analyst at Gartner. ?There is maintenance, software, consulting. Mainframe applications aren?t portable to other kinds of machines. Information technology people are basically risk-averse, and if you can sell them something that works, they?ll wonder why they should ever get rid of it.?

All you have to do is get that first $75,000 machine through the door.

Source: http://bits.blogs.nytimes.com/2013/07/23/mainframe-computers-that-change-with-the-times/

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