Thursday, May 5, 2016

How Capitalism is Killing Itself (Video)





How Capitalism is Killing Itself

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How Capitalism is Killing Itself
Even 133 years after his death, the teachings of philosopher Karl Marx seem more relevant today than ever before. They've also gained in popularity. In a recent survey, 43% of young Americans under the age of 30 voiced favorable leanings to the notion of socialism. Is this a sign of a new anti-capitalism trendtaking over in the United States? The new documentary titled How Capitalism is Killing Itself, produced by the acclaimed series The Empire Files, seeks to find answers.
The film dissects the tenants of Marx's economic principles, which were largely born out of a humanist philosophy. As recounted by Dr. Richard Wolf, the film's chief interview subject, Marxist economist and Professor Emeritus of Economics at University of Massachusetts - Amherst, the philosopher set out to uncover the root of social inequality, and identified a purely capitalistic system as its major culprit. In his view, capitalism could only thrive by imposing various social ills upon society such as impoverishment, inequality and exploitation. Therefore, the Marxist-led socialist movement is characterized by a need to redefine the very foundations of what he viewed as a deeply flawed and immoral system.
There are many indications that the long reign of capitalism may be on the ropes, especially when observed through the prism of this year's United States presidential election. Self-confirmed democratic socialist Bernie Sanders has proven enormously successful in spreading the gospel that Marx first preached well over a century ago. The youth, in particular, has flocked in support of Sander's candidacy and his message in record numbers. As members of this new generation eventually assume the mantle of leadership in their country, could their firmly held beliefs facilitate the end of capitalism as we know it?
How Capitalism is Killing Itself is a fast-paced and informative expose, but it makes no illusions to an even handed treatment of its subject; its agenda is implicit in its title. But even for the most fervent skeptics or the uninitiated, the film proves illuminating in its attempts to dispel much of the misgivings, fear and misinterpretations of the Marxist philosophy.

Fitbit is getting destroyed

Fitbit is getting destroyed

fitbit charge hrFitbit
Fitbit shares fell as much as 15% on Thursday after the maker of smart wearables forecast second-quarter revenues lower than analysts expected.
Earnings released Wednesday topped expectations, but guidance for the current quarter missed even the lowest forecast.
The company reported adjusted earnings per share (EPS) of $0.10, beating the forecast for $0.02, according to Bloomberg. Revenues totaled $505.4 million, also topping the estimate for $443.3 million.
But guidance for the second quarter was light, at a range of $0.08-$0.11, versus $0.26 expected.
Fitbit said it sold 4.8 million devices during the first quarter.
Some analysts had raised questions about the company's ability to compete effectively with rivals like Apple. But Fitbit stands to benefit from a projected surge in wearable-device shipments over the next few years.
According to IDC, Fitbit moved the most devices globally in 2015 and had the largest market share.
Fitbit's guidance for profits this year also beat expectations. It sees full-year adjusted EPS at $1.12-$1.24, up from an earlier projection.
"Based on the first quarter’s performance and momentum, we are confident about the remainder of the year, which is reflected in our increased guidance," said CEO James Park.
Fitbit sees full-year revenues of $2.5 billion to $2.6 billion. Its second-quarter revenue forecast was better than expected, at a range of $565 million to $585 million, versus $531.3 million expected.
The stock has lost half its value since the company's initial public offering in June 2015.

Screen Shot 2016 05 05 at 10.32.54 AMGoogle
More: Fitbit Earnings

Tesla beats on earnings

Tesla beats on earnings

Elon MuskChinaFotoPress/Getty ImagesElon Musk, Tesla's CEO.
Tesla just reported its first-quarter results, capping a busy news day for the electric-car maker.
The company generated $1.6 billion in revenue and a narrower-than-expected adjusted loss per share of $0.57.
Tesla was expected to report a quarterly adjusted loss of $0.60 per share and revenues of $1.61 billion, according to Bloomberg.
Tesla raised its forecast for capital spending this year by 50% to $1.5 billion.
The company said that it expects production and deliveries of its Model 3 in late 2017.
It expects to produce 20,000 vehicles in the second quarter, or 30% more than it did in the same period a year ago.
"Looking out beyond Q2, we remain confident that we can deliver 80,000 to 90,000 new Model S and Model X vehicles in 2016," CEO Elon Musk said in a statement, reiterating the company's earlier projection.
And of course, Tesla is no longer just about cars. The company said that it delivered 2,500 of its home batteries, called Powerwalls, in the quarter.
Tesla shares jumped by as much as 7% in after-hours trading before halving gains.
To recap the day's news, two executives responsible for building cars are leaving the company: Greg Reichow, vice president of production, and Josh Ensign, vice president of manufacturing.
This is a big deal because Tesla is preparing to launch its mass-produced Model 3. Bloomberg noted that every Tesla model since the Roadster has been delayed by at least six months.
The second big new story was that famed short seller Jim Chanos reiterated his bearish view on the company and said that he was short Tesla. Shares fell 4% in trading.
JPMorgan analysts had noted that the $35,000 price tag, although Tesla's lowest ever, could still limit demand. That's because it's likely to be more expensive after options are added.
More: Tesla Earnings

Tribune Publishing has thrown out Gannett's offer to buy it

Tribune Publishing has thrown out Gannett's offer to buy it

los angeles times newspaperFred Prouser/Reuters
Tribune Publishing has thrown out Gannett's offer to buy it for $815 million.
In a statement Wednesday, Tribune, whose titles include the Los Angeles Times, said its board unanimously rejected what it called Gannett's "opportunistic" offer.
"The board believes that the price reflected in the proposal understates the company's true value and is not in the best interests of our shareholders,"Tribune CEO Justin Dearborn wrote in a letter to Gannett.
Gannett publicized its proposal to buy Tribune for $12.25 a share in cash on April 25.
Tribune shares jumped 4% in after-hours trading. The company also reported first-quarter results that showed it swung to a loss totaling $6.5 million.
And that's probably why Gannett, the publisher of USA Today, wants to buy Tribune. Gannett chairman John Jeffry Louis had said the combined firm would help his publications but would also help Tribune thrive in a "challenging environment" for the newspaper industry.
Here's the full letter Tribune sent to Louis and CEO Robert Dickey:
Dear Messrs. Louis and Dickey:
The Board of Directors of Tribune Publishing Company (the “Company”) has carefully reviewed, with the assistance of its financial advisors, Goldman, Sachs & Co. and Lazard Frères & Co. LLC, and its legal advisor, Kirkland & Ellis LLP, your unsolicited proposal, as set forth in your April 12, 2016 letter and subsequent correspondence, for Gannett Co., Inc. to acquire all of the outstanding shares of the Company for $12.25 per share in cash (the “Proposal”). As we offered on April 24, we are sharing the Board’s position promptly following our earnings announcement.
Consistent with its fiduciary duties and past practices, the Board is always open to evaluating any credible proposal that the Board reasonably believes, in good faith, to be in the best interests of the Company and its shareholders.
After thorough consideration, the Board has unanimously concluded that it is not prepared to engage with Gannett about a combination of our companies based on the value you indicated in the Proposal. The Board believes that the price reflected in the Proposal understates the Company’s true value and is not in the best interests of our shareholders. In order to provide you some context for this conclusion, we have attached Exhibit I, which clearly indicates the opportunistic nature of the $12.25 offer and sets the record straight on the actual EBITDA multiple in the Proposal.
Tribune Publishing is in the very early stages of an exciting and compelling strategic transformation. Today we announced full-year 2016 Adjusted EBITDA guidance of $166-172 million and a plan to drive increasing monetization of our important brands, capitalize on the global potential of the LA Times, and significantly accelerate our conversion of content to revenue through an enhanced digital strategy. The Board is confident in our ability to generate shareholder value in excess of Gannett’s opportunistic proposal through our focused execution of this standalone plan. The Board has evaluated the Proposal in this context and concluded that it is not a basis for further discussion.
Sincerely,
Justin C. Dearborn,
on behalf of the Board of Directors

China's all-important services sector slowed down last month

China's all-important services sector slowed down last month

China monkeyGetty Images
The great hope for China’s economic transition — the nation’s services sector — saw activity levels slow modestly last month, according to the latest Caixin-Markit China services purchasing managers (PMI) report.
The PMI fell to 51.8 in April, 0.4 points below the 52.2 level struck in March.
The index measures changes in activity levels from one month to the next. Anything above 50 signals growth, while anything below that level means contraction -— so the higher the number the better.
While at 51.8 it’s activity levels are still improving, the index remains below its historic average.
China manufacturing PMI Caixin Markit April 2016Business Insider Australia
Though the headline index fell, you wouldn’t know it from the internal details of the report — they were largely good.
New order growth hit a three-month high with some firms commenting on improved underlying client demand and new product launches, according to Markit. 
Order backlogs also rose for the first time in 2016 with panelists indicating that improved inflows of new work contributed to renewed capacity pressures and higher unfinished workloads.
As a consequence, employment levels also rose, reversing the drop recorded in the previous month.
Like that seen in the separate manufacturing PMI gauge, price pressures also increased, signaling that inflationary pressures may be building.
The one weak spot came from the survey’s sentiment gauge which held steady after falling to a three-month low in March.
“Anecdotal evidence suggested that some companies expect improving market conditions, are planning operational expansions and are forecasting new projects to boost activity,” said Markit. “However, other businesses commented that relatively subdued market conditions could dampen growth.”
As opposed to the non-manufacturing PMI report released by China’s National Bureau of Statistics — a larger survey which takes in responses from both the public and private sector — the Caixin-Markit survey focuses on responses from smaller services firms from the private sector.
Despite differences in the construction of the surveys, both registered slower growth in April, indicating a continued moderation in momentum compared to levels seen in previous years.
Read the original article on Business Insider Australia. Copyright 2016. Follow Business Insider Australia on Twitter.

A huge wildfire is disrupting oil production in Canada — and now crude is surging

A huge wildfire is disrupting oil production in Canada — and now crude is surging

Oil is on a massive charge on Thursday, surging after a huge wildfire disrupted production in Canada and after news that production in the US fell to its lowest levels in 18 months.
Just after 1:30 p.m. BST (8:30 a.m. ET) the two major oil benchmarks — West Texas Intermediate and Brent crude — have popped 4.45% and 3.8%, getting an unexpected boostafter a huge wildfire in Canada's oil-producing region disrupted production there. "Our understanding is that up to 800,000 barrels a day of production has been (or is in the process of being) shut down," analysts at Energy Aspects said, as first quoted by the Financial Times. "The situation remains fluid and further disruptions cannot be ruled out."
The US production drop also gave another suggestion to investors that the market may be on its way to balancing.
Both major benchmarks are now above $45 a barrel. Here's how things look in the markets right now:
Screen Shot 2016 05 05 at 13.33.27Investing.com
Screen Shot 2016 05 05 at 13.33.47Investing.com
Oil's charge is also being helped by data from the US Energy Information Administration released Wednesday showing that oil production in the country had fallen to its lowest level since September 2014. US production decreased by 113,000 barrels a day last week, marking the biggest weekly decline in output since July. US domestic output has now fallen for 11 consecutive weeks.
That further fall in production suggests that the markets are starting to address the supply-demand imbalance that has plagued markets and caused prices to fall from more than $100 a barrel in 2014 to as low as $27 in January.
Despite the good news from the EIA, however, oil inventories actually continued to grow last week. The EIA's Weekly Petroleum Status Report showed that US commercial crude inventories increased by 2.8 million barrels for the week that ended Friday.
Finally, news coming out of Saudi Arabia that the country has raised oil prices for export to Asia by the most in 14 months has also helped oil, Bloomberg reports. The move suggests that demand for crude is on the up, giving prices a further boost.

Wednesday, May 4, 2016

Aeropostale files for Chapter 11 bankruptcy protection

Aeropostale files for Chapter 11 bankruptcy protection

A customer enters an Aeropostale store in Broomfield, Colorado, United States May 14, 2015. REUTERS/Rick Wilking Thomson ReutersA customer enters the Aeropostale store in Broomfield
(Reuters) - Struggling teen apparel retailer Aeropostale Inc filed for Chapter 11 bankruptcy protection on Wednesday, succumbing to years of losses as shoppers thronged fast fashion retailers and competitors.
The mall-based retailer listed assets in the range of $100 million to $500 million, and liabilities of between $100 million and $500 million, according to a court filing. (http://1.usa.gov/21vjWta)
The New York Stock Exchange suspended trading and delisted Aeropostale shares on April 21.
The case is in U.S. Bankruptcy Court, District of New York, Case No: 16-11275.
(Reporting By Aurindom Mukherjee in Bengaluru; Editing by Sunil Nair)
Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

'Plausible allegations that a conspiracy existed': Barclays, RBS, and 5 other top banks settled a US rate-rigging lawsuit for $324 million

'Plausible allegations that a conspiracy existed': Barclays, RBS, and 5 other top banks settled a US rate-rigging lawsuit for $324 million

A protester wearing a Guy Fawkes mask carries an Occupy Wall Street placard in front of the Reichstag building during an Occupy Berlin protest denouncing current banking and financial industry practices in Berlin November 12, 2011.REUTERS/Pawel KopczynskiThe banks were accused of colluding from 2009 to 2012, covering the period when anti-capitalist Occupy demonstrators held protests around the world.
NEW YORK (Reuters) - Seven of the world's biggest banks have agreed to pay $324 million (£222.7 million) to settle a private US lawsuit accusing them of rigging an interest rate benchmark used in the $553 trillion (£380.2 trillion) derivatives market.
The settlement made public on Tuesday resolves antitrust and other claims against Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan Chase & Co and Royal Bank of Scotland Group.
Several pension funds and municipalities accused the banks of engaging in a conspiracy to rig the "ISDAfix" benchmark from 2009 to 2012.
The ISDAfix is used a benchmark to set the price of swaps and interest rate derivatives.
Bloomberg reports that the fine follows a ruling by US District Judge Jesse Furman in Manhattan that a group of investors led by an Alaska pension fund had raised “plausible allegations that a conspiracy among the defendants existed” and allowed the suit to go forward.
The pension funds and municipalities claim that from 2009 onwards the banks electronic chatrooms to fix the IDSAfix, typically submitting the same prices when it came time to fix the price.
Other bank defendants have yet to settle. HSBC, Morgan Stanley, BNP Paribas, Goldman Sachs, Nomura, UBS, Wells Fargo, and ICAP are still involved in the case, according to Bloomberg.
(Reuters reporting by Jonathan Stempel in New York; Editing by David Gregorio)

The ECB's 'aggressive stimulus' is finally driving a European recovery

The ECB's 'aggressive stimulus' is finally driving a European recovery

Dani Sordo of Spain and co-driver and compatriot Marc Marti in their Citroen WRC drive for the second place in the 66th Rally Poland in Mikolajki June 28, 2009.REUTERS/Peter AndrewsDani Sordo of Spain and co-driver and compatriot Marc Marti in their Citroen WRC drive for the second place in the 66th Rally Poland in Mikolajki June 28, 2009.
The European economy enjoyed "tepid" but "sustained" growth in April, proving that the ECB's stimulus measures are finally starting to do their job, according to the latest PMI data released by Markit on Wednesday morning.
According to Markit, the eurozone saw a composite PMI reading of 53, slower than the month before, and in line with initial estimates of growth during the month.
The purchasing managers index (PMI) figures are given as a number between 0 and 100. Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the better. Wednesday's data is the final data of the month, following on from Markit's flash readings in late April.
Markit's statement alongside the data said (emphasis ours):
"The rate of eurozone economic expansion remained only modest in April. Output rose at a pace slightly below the average seen in the opening quarter of the year, with only moderate growth seen in both the manufacturing and service sectors. "
"The ‘big-four’ nations all reported expansions of economic activity in April, with Spain seeing the steepest rate of increase. Output growth in Spain accelerated to a three-month high, despite a slower rate of increase for new business. Italy also saw a modest improvement in its rate of output expansion."
Here's what Chris Williamson, Markit's chief economist had to say (emphasis ours):
The final PMI data confirm the earlier flash estimate that the eurozone economy grew at a steady but unspectacular annual rate of 1.5% at the start of the second quarter. Prices charged also continued to fall, indicating that growth is being partly fuelled by price discounting.
However, while still tepid, the sustained eurozone growth contrasts with slowdowns in the US and UK, suggesting the ECB’s more aggressive stimulus is helping to drive a steady recovery.
Further comfort can be drawn from the upturn in service sector business optimism for the year ahead, which has edged up since the start of the year to signal one of the highest degrees of sentiment seen over the past five years.
Here are the headline eurozone figures:
  • Composite PMI: 53.0, in line with the flash estimate, but down 0.1 from March's 53.1 reading.
  • Services PMI: 53.1, down from the 53.2 flash estimate, but flat since March
Markit's chart shows just how much Europe is struggling to find substantially, sustainable growth right now. Take a look:
Eurozone PMI AprilMarkit
As well as the headline figures, Markit released data individually on the eurozone's four biggest economies, as well as Greece. Here's how things look across Europe's individual economies.
  • German Composite: 53.6, an 11-month low and down from 54 in March.
  • German Services: 54.5, down from 55.1 in March to a six-month low.
  • French Composite: 50.2, up from 50 in March to a three-month high.
  • French Services: 50.6, a five-month high, and out of contraction. The March reading was 49.9.
  • Italian Services: 52.1, a beat on the 51.7 reading expected, and well up from March's 13-month low of 51.2.
  • Spanish Services: 55.1, down from 55.3 in March, but ahead of the 55 expected.
  • Greek Manufacturing: 49.7, still in contraction, but closer to expansion than March's 49 figure.
The PMI figures come just a couple of weeks after European Central Bank president Mario Draghi reiterated his belief that the bank's monetary policy measures are working to address sluggish growth and inflation in Europe.

"Overall, our measures in place since June 2014 have clearly improved borrowing conditions for firms and households" Draghi said at a press conference after the ECB left all of its bases rates unchanged on April 21.
Draghi did admit however, that risks to growth in the eurozone are "tilted to the downside." As a result, Draghi and the ECB will likely take heart from today's numbers.

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