We need to find a fairer way of providing Goods and Services to the rest of the people on Earth.Cryptocurrencies and/or Gold Standard of money....maybe the answer to fight hyperinflation caused by too much printing of paper/fiat currencies by Governments and Central Banks all over the World. (https://nomorefiatmoneyplease.blogspot.com)
Deutsche Bank announces huge 6.7b euro net loss for 2015
Germany's largest bank, Deutsche Bank, on Wednesday announced an overall loss of 6.7 billion euros (US$7.3 billion) for 2015, blamed on litigation costs, write-downs and restructuring and severance charges.
PHOTO: EPA
[BERLIN] Germany's largest bank, Deutsche Bank, on Wednesday announced an overall loss of 6.7 billion euros (US$7.3 billion) for 2015, blamed on litigation costs, write-downs and restructuring and severance charges.
Some of these losses had already been announced earlier in 2015 but the bank reported additional litigation charges of 1.2 billion euros in the fourth quarter. Overall, it expects a fourth-quarter loss of 2.1 billion euros, it said in a statement.
"The full-year results include previously disclosed impairments taken in the third quarter of 5.8 billion euros of goodwill and intangibles, full-year litigation provisions of approximately 5.2 billion euros and restructuring and severance charges of approximately 1.0 billion euros," it said.
The bank is currently embroiled in some 6,000 law suits over allegations of money laundering and interest rate rigging.
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Deutsche Bank expects to report full year revenue of 33.5 billion euros for 2015, the statement added.
The bank will announce details of the fourth-quarter and annual results on January 28.
EU privacy regulators inch towards restriction of EU-US data transfers: sources
[BRUSSELS] European Union privacy regulators are leaning towards the restriction of personal data transfers to the United States because of the risk of US surveillance, two sources familiar with the matter said on Wednesday.
EU data protection authorities are finalising their position on data transfers to the United States after a top EU court last year struck down the Safe Harbour system, used by thousands of businesses to easily transfer data across the Atlantic, because the data were not protected enough from any US snooping.
A plenary meeting on Feb. 2 of the Article 29 Working Party, which brings together the EU's 28 privacy regulators, will decide to what extent companies should be allowed to continue transferring Europeans' data to the United States in light of the ruling from the European Court of Justice (ECJ).
In a preparatory meeting on Wednesday the authorities discussed a range of possible outcomes, including "freezing" all new authorisations for US data transfers on the basis of binding corporate rules within multinationals or standard contractual clauses between companies, the sources said.
Under EU data protection law, companies cannot shift Europeans' data to countries outside the EU deemed to have insufficient privacy safeguards, which applies to the United States according to the authorities' assessment of the US legal system.
However, data transfers are allowed if firms set up complex legal structures such as binding corporate rules or standard contractual clauses.
The 15-year-old Safe Harbour framework allowed firms to transfer personal data to the United States without doing that.
A final decision will only be taken at the plenary meeting and not all regulators were in favour of the restrictive approach, the sources said.
If the European Commission, which is negotiating a replacement for Safe Harbour with Washington, presents the regulators with a strengthened system their position may change. "That will change the whole game," one of the sources said,"and could stop the data protection authorities from taking action." A spokeswoman for the French data protection authority, which heads the group of regulators, said negotiations were still ongoing and a final decision would only be taken on Feb 2.
Freezing all new authorisations for US data transfers using binding corporate rules or standard contractual clauses is likely to put a dampener on transatlantic data flows which are the highest in the world, stoking claims from businesses that the borderless nature of the Internet is being jeopardised.
Companies that have already set up the legal mechanisms and got them approved by regulators could also be affected if there are complaints, one of the sources said.
Revelations two years ago from former US National Security Agency contractor Edward Snowden about mass US surveillance programmes caused a political backlash in Europe and set the stage for the sinking of Safe Harbour in court.
[AMSTERDAM] In an unprecedented step, Europe's five largest airline groups including budget carriers EasyJet and Ryanair on Wednesday launched a new alliance to combat rising airport charges amid a fierce battle with Gulf rivals.
PHOTO: BLOOMBERG
[AMSTERDAM] In an unprecedented step, Europe's five largest airline groups including budget carriers EasyJet and Ryanair on Wednesday launched a new alliance to combat rising airport charges amid a fierce battle with Gulf rivals.
The new association dubbed Airlines for Europe (A4E) brings together the budget airlines, Lufthansa, Air France-KLM and the International Airline Group, parent company of both British Airways and Iberia.
The alliance will "represent the interests of its members when dealing with the EU institutions, international organisations and national governments on European aviation issues," it said in a statement at the launch at Amsterdam's Schiphol airport.
In their first act, the five managing directors of the member airlines called for swift steps to stop European travellers being "fleeced by excessive airport charges" and for the removal of "unreasonable taxes".
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"Six months ago we got together to agree that Europe needs a loud and unified and clear voice to represent the airline industry in order to bring changes to the EU aviation framework," said Willie Walsh, chief executive of IAG.
The new association will "support and create jobs and support the interest of aviation in Europe," he said.
European Transport Commissioner Violeta Bulc welcomed the move, saying: "Not only do we want a very strong internal (aviation) market... but we also want to ensure that European aviation stays a leading force in shaping global aviation." The alliance said it is demanding "a significant reduction" in the charges which are "paid by hundreds of millions of EU travellers." Citing a recent study, Air France-KLM chief Alexandre de Juniac revealed that airport charges at the largest 21 European airports had soared by 80 per cent since 2005 even as the average price of airline tickets has fallen by about 20 per cent.
"At the 10 largest airports the increase was even greater, close to 90 percent," he said.
"These increases mean that passengers have had to pay an extra 5.4 billion euros (US$6.11 billion) in airport charges over the last 10 years." The airline bosses urged the "EU to take action lowering the cost of the EU's airports by ensuring that monopoly airports are effectively regulated." The association is also taking aim at unions within the air traffic control sector, with Ryanair chief executive Michael O'Leary saying "we want to eliminate air trafic control strikes that affect thousands of passengers." "We expect to see action this year," Mr O'Leary said, adding the association believed that reform on airport directives will be implemented before the end of 2016.
The launch of the new association comes on the eve of an EU Aviation Summit, being hosted by the Netherlands as part of its six-month presidency of the European Union.
It also follows European allegations that their Gulf rivals enjoy a competitive edge due to what they say is unfair financing from their energy-rich, deep-pocketed state owners.
But Europe's largest airline bosses, whose businesses transport around 460 million passengers a year, remained coy on the issue of tackling rivals from the Gulf saying that it was an area of disagreement.
"Competition by the Gulf airlines wasn't an area were we could find common ground," Mr Walsh told journalists.
The new alliance also intends to push for a more reliable airspace by reducing the costs of air traffic control through the completion of the Single European Sky plan.
The aim of the project, launched in the late 1990s, is to make European skies more competitive, secure and environmentally friendly by eliminating national borders.
US crude heads towards $27 as IEA warns market could 'drown in oil'
US crude prices extended losses on Wednesday, heading towards US$27 a barrel, as the International Energy Agency (IEA) warned that the oil market could "drown in oversupply".
PHOTO: REUTERS
[SINGAPORE] US crude prices extended losses on Wednesday, heading towards US$27 a barrel, as the International Energy Agency (IEA) warned that the oil market could "drown in oversupply".
West Texas Intermediate (WTI), the US benchmark, fell to levels last seen in September 2003, touching US$27.49 at one point.
At around 0645 GMT, the February contract was trading at US$27.55, down 91 US cents, or 3.20 per cent. Brent crude for March - which briefly fell below $28 on Monday - was 63 US cents, or 2.19 per cent, lower at US$28.13.
Both contracts are at more than 12-year lows.
"The IEA report played a big part in the price decline," said Phillip Futures analyst Daniel Ang, adding that this underscored the current "bearishness in the market".
Prices have crashed about 75 per cent since mid-2014, hit by a perfect storm of a supply glut, weak demand, a slowing global economy and a strong dollar.
And the IEA said on Tuesday they would fall further this year as supply vastly exceeds demand, with major oil exporter Iran's return to the market offsetting any production cuts from other countries.
"Can it go any lower?" the IEA said. "Unless something changes, the oil market could drown in oversupply. So the answer to our question is an emphatic yes. It could go lower." The market has been awash with supplies owing to high production levels in the United States and by the OPEC cartel, which last year rejected calls to slash output as it looks to maintain its market share.
The oil crisis has caused ructions across global markets, wiping trillions of dollars off valuations, with weak demand for the commodity signalling weakness in economies. The tumbling prices have also led to major energy firms scaling back or cancelling investment and projects, and laying off thousands of workers.
"Clearly there is a further focus on the potential for Iranian additions to daily supply," said Michael McCarthy, chief market strategist at CMC Markets Australia.
"On top of that, there are further concerns that there's a stockpile to be cleared in Iran now that sanctions have been lifted," he told AFP by telephone from Sydney.
"Coming on top of a very fragile pricing environment, that's clearly had an impact." Iran on Monday ordered a boost to crude production a day after the West lifted sanctions on the country in response to Tehran's compliance with a deal on curbing its nuclear programme.
Iran's National Iranian Oil Company said it had ordered an increase in output of 500,000 barrels per day. The country currently produces 2.8 million barrels per day and exports just over a million.
"It's the supply side that is getting the focus at the moment. The demand aspect is a longer term proposition for the market," added McCarthy.
"We're now outside fundamentals and for that reason it is very difficult to forecast where it will stop. When markets panic, they become unpredictable."
Even in slump, US oilfield firms hesitate over post-sanctions Iran
[WASHINGTON] For US oilfield services companies suffering the worst revenue slump in decades it would at first seem like a lifeline: The lifting of sanctions on Iran by six world powers reopened the door for their foreign units to return to the OPEC member that needs help to develop its oil reserves.
Iran, home to the world's fourth largest crude reserves, is embarking on a US$185 billion effort to revive oil and gas projects by 2020 after sanctions halved the country's oil exports and led to neglect of its energy infrastructure.
A drop in crude oil prices to 13-year lows has brought drilling come almost to a standstill nearly everywhere else in the world, creating rare commercial prospects for non-US companies such as Saipem, an oilfield subsidiary of Italian major Eni and Shell, which have already expressed an interest in returning.
Yet major US oilfield firms such as Schlumberger Ltd , the world's largest, and Weatherford International said they were not pursuing Iran business for now, partly because a complex web of sanctions remained that Washington linked to its allegations of Tehran's support for terrorism and human rights abuses.
After the international group known as the P5+1 removed sanctions on Saturday as part of a deal for Tehran to curb its nuclear ambitions, the US Treasury Department issued a general license allowing foreign-based subsidiaries of US companies to trade with Iran for the first time since 2012.
But the US government has fined both Weatherford and Schlumberger in the past two years for violating sanctions on Iran and other countries. In 2013 Weatherford agreed to pay US$253 million and last year Schlumberger agreed to pay more than US$237 million. "You would expect US companies in highly enforced industries like the oil and financial sectors to be initially reluctant," to return to Iran, "until they see more of how the situation plays out," said Ginger Faulk, a lawyer who advises companies on sanctions at Baker Botts.
The new Treasury license comes with several strings attached.
US citizens, for example, are not allowed to deal with Iran even if they are working with a foreign based affiliate, while more than 225 Iran-linked persons and entities, many of whom control major pieces of Iran's infrastructure, are still off limits by Washington. "Having a truly independent foreign affiliate is harder than it sounds and many companies have found that it is difficult to keep personnel, equipment and operations segregated to the degree that the Treasury Department's Office of Foreign Asset Control requires," said Josh Zive, a lawyer at Bracewell, who advises energy companies on sanctions.
In addition, companies are hesitant to move in during an election year in the United States, lawyers said. Republican presidential candidates have been critical of Democratic President Barack Obama's nuclear deal with Iran and the next president could potentially remove the general license soon into the first term. "A change in administration means there is potential for stranded investments if there is a policy change," said Mr Zive. He said "having those opportunities cut off before they become profitable could become very risky." Weatherford spokeswoman Karen David-Green said the company"currently has no plans to commence operations in Iran of any kind or through any affiliates." When asked if Schlumberger would return to Iran, spokesman Joao Felix said not now. "In the event the US government does materially ease sanctions on Iran, we will evaluate going back in at that time." Three other oilfield service companies, Halliburton, Cameron International and National Oilwell Varco , did not immediately comment when asked about Iran, in contrast with European oil companies that were quick to express their interest both before and after the deal.
Part of the difficulty for US companies in Iran is knowing which supply chains to deal with. Iran's biggest construction firm, Khatam al-Anbiya, and Tidewater Middle East Co, a major port operator in Iran that owns the primary port terminal, remain on Washington's blacklist for their ownership by the Iranian Revolutionary Guard Corps.
US officials have said that anyone doing business with these banned entities risked incurring harsh penalties.
Furthermore, companies that decided to put foreign-based units in Iran would have to publicly declare their actions, which could open them up to political scrutiny. "I think there is going to be very little appetite by US firms to push the envelope. You could pretty easily see one or more congressional committees calling executives up to explain why their foreign sub decided to deal with Iran," said a US compliance official, who spoke on condition of anonymity because of the sensitivity of the topic.
