Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61983 Wed, 29 Mar 2017 21:44:37 GMT Following Britain, Australia now officially has a 'Google tax' on Multinationals http://implode-explode.com/viewnews/2017-03-29_FollowingBritainAustralianowofficiallyhasaGoogletaxonMultination.html The DPT laws are aimed at multinationals with global revenue of more than $1 billion and Australian revenue of greater than $25 million. They will be hit with a 40 per cent tax on all profits - that is 10 per cent higher than the 30 per cent company tax rate.

It aims to ensure that the tax paid by global entities properly reflects the economic substance of their activities in Australia and prevents the diversion of profits offshore through contrived arrangements.

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Australia followed the lead of Britain, which has a similar laws aimed at multinationals which resulted in Google agreeing to a deal with that country's tax authorities to pay £130 million ($214 million) in back taxes.

... But as more countries hunt for a greater share of revenue from multinationals, concerns remain that disagreements between global agencies about which nation is entitled to tax profits could spark revenue wars.

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iehi-feed-61981 Wed, 29 Mar 2017 21:38:41 GMT By the numbers, Trump's big environmental regulation rollback is all kinds of unpopular http://implode-explode.com/viewnews/2017-03-29_BythenumbersTrumpsbigenvironmentalregulationrollbackisallkindsof.html iehi-feed-61980 Wed, 29 Mar 2017 21:35:09 GMT Amazon to start collecting state sales taxes everywhere http://implode-explode.com/viewnews/2017-03-29_Amazontostartcollectingstatesalestaxeseverywhere.html By the end of last year, Amazon was collecting sales taxes in 29 states and Washington D.C. Since that list included all of the largest states, that meant it was effectively collecting sales tax from 86% of the nation's population. The site has been rapidly adding the remaining states to the list of places where it collects taxes this year, bringing the total to 41 states plus Washington. And as of April 1, it will collect from all 45 states that have a statewide sales tax.

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[But] there is still one big sales-tax loophole left on Amazon: Shoppers don't have to pay sales tax when they buy from one of the site's many third-party vendors.

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iehi-feed-61976 Wed, 29 Mar 2017 20:39:31 GMT 'No turning back' on Brexit as Article 50 triggered; Merkel Rejects Post-Breakup Relationship Talks http://implode-explode.com/viewnews/2017-03-29_NoturningbackonBrexitasArticle50triggeredMerkelRejectsPostBreaku.html Angela Merkel rejects one of Theresa May's key Brexit demands.]]> iehi-feed-61975 Wed, 29 Mar 2017 17:13:06 GMT "Men Without Work" http://implode-explode.com/viewnews/2017-03-29_MenWithoutWork.html iehi-feed-61974 Wed, 29 Mar 2017 15:28:59 GMT Three Reasons Why Bitcoin Could Reach $10,000 (Or More) http://implode-explode.com/viewnews/2017-03-29_ThreeReasonsWhyBitcoinCouldReach10000OrMore.html iehi-feed-61973 Wed, 29 Mar 2017 14:30:33 GMT Tax Reform Failure Could Trigger Market Downturn - The Wall Street Examiner http://implode-explode.com/viewnews/2017-03-29_TaxReformFailureCouldTriggerMarketDownturnTheWallStreetExaminer.html iehi-feed-61972 Wed, 29 Mar 2017 14:27:45 GMT What the Berkshires Learned by Launching its Own Currency http://implode-explode.com/viewnews/2017-03-29_WhattheBerkshiresLearnedbyLaunchingitsOwnCurrency.html iehi-feed-61971 Tue, 28 Mar 2017 22:35:21 GMT In Another Blow, Wells Fargo Faulted for `Extensive' Discrimination in Review http://implode-explode.com/viewnews/2017-03-28_InAnotherBlowWellsFargoFaultedforExtensiveDiscriminationinReview.html Wells Fargo & Co. engaged in an "extensive and pervasive pattern" of discriminatory and illegal lending practices for years, a U.S. regulator said in slashing a key rating of how the bank serves communities, triggering restrictions that may hamper its growth.

While examiners credited Wells Fargo for "excellent responsiveness" in meeting customers' credit needs, 10 government inquiries over the past decade prompted the Office of the Comptroller of the Currency to lower its overall score of the company's compliance with community banking laws to "needs to improve." Enforcement cases cited by the OCC faulted the bank's treatment of minority neighborhoods, military personnel and women who had recently given birth.

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The findings risk further damage to Wells Fargo's reputation as executives try to rebuild customer and investor trust in the wake of an account scandal that rocked the company and its stock price last year. Yet, many of the cases cited by the OCC already were announced years ago in settlements, including some misconduct that predated the 2008 financial crisis.

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iehi-feed-61969 Tue, 28 Mar 2017 21:43:30 GMT Merkel's party wins German state vote by large margin (PRESAGING CONTINUED DOMINANCE?) http://implode-explode.com/viewnews/2017-03-28_MerkelspartywinsGermanstatevotebylargemarginPRESAGINGCONTINUEDDO.html The vote in the tiny state on the French border, which has a population of only one million, was seen as a bellwether ahead of the September 24th general election in which Merkel, the veteran leader often dubbed "the Queen of Europe", will seek a fourth term.

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The CDU's popular state premier Annegret Kramp-Karrenbauer, who was cheered by jubilant supporters, admitted she was "floored" by the strong result, about five points up from the last election amid strong turnout of around 70 percent.

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iehi-feed-61965 Tue, 28 Mar 2017 16:52:14 GMT Tensions flare Between Turkey And EU, Greece on Even of Erdogan Power-Expansion Vote http://implode-explode.com/viewnews/2017-03-28_TensionsflareBetweenTurkeyAndEUGreeceonEvenofErdoganPowerExpansi.html ``Western allies have argued that a vote endorsing the proposed constitutional change would invest the Turkish leader with unparalleled authority and limit checks and balances at a time when they fear he is exhibiting worrying signs of authoritarianism. Erdoğan has been enraged by recent bans on visiting Turkish officials rallying "yes" supporters in Germany and the Netherlands.

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"We have a referendum on 16 April. After that we may hold a Brexit-like referendum on the [EU] negotiations," Erdoğan told a Turkish-UK forum attended by the British foreign secretary, Boris Johnson. "No matter what our nation decides we will obey it. It should be known that our patience, tested in the face of attitudes displayed by some European countries, has limits."

The animus -- reinforced last week when the leader said he would continue labelling European politicians "Nazis" if they continued calling him a dictator -- has also animated tensions between Greece and Turkey, and Erdoğan's comments came hours after the Greek defence minister said armed forces were ready to respond in the event of the country's sovereignty and territorial integrity being threatened.

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Turkey's EU negotiations have long been hindered by Cyprus, and talks aimed at reuniting its estranged Greek and Turkish communities are at a critical juncture but have stalled and are unlikely to move until after the referendum.

But it is in the Aegean where tensions, matched by an increasingly ugly war of words, have been at their worst. After a tense standoff over eight military officers who escaped to Greece after the abortive coup against Erdoğan last July -- an impasse exacerbated when the Greek supreme court rejected a request for their extradition -- hostility has been measured in almost daily dogfights between armed jets and naval incursions of Greek waters by Turkish research vessels.

Related, see Erdogan Races Against the Dollar in Campaign for Unrivaled Power.

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iehi-feed-61964 Tue, 28 Mar 2017 16:32:07 GMT Ford invests $1.2 billion in Michigan plants, Per 2015 UAW Contract (TRUMP ONCE AGAIN TRIES TO TAKE CREDIT) http://implode-explode.com/viewnews/2017-03-28_Fordinvests12billioninMichiganplantsPer2015UAWContractTRUMPONCEA.html Ford will invest $1.2 billion to build or modernize three facilities in Michigan where it plans to assemble trucks and SUVs, and to store consumer data, a reflection of the trends that are fundamentally reshaping the auto industry's business model and manufacturing operations in the U.S.

President Trump preempted the "big announcement" with an early morning tweet in which he touted, "Car companies coming back to U.S. JOBS! JOBS! JOBS!" ... But such massive investment decisions take longer to plan and execute than Trump has been in office. The investments Ford announced Tuesday, for example, are part of a 2015 contract between the automaker and United Auto Workers in which the company agreed to invest $9 billion and create or retain 8,500 jobs through 2019.''

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iehi-feed-61963 Tue, 28 Mar 2017 16:21:59 GMT These Charts Show Alarm Bells Ringing on the Trump Trade http://implode-explode.com/viewnews/2017-03-28_TheseChartsShowAlarmBellsRingingontheTrumpTrade.html iehi-feed-61962 Tue, 28 Mar 2017 16:20:59 GMT Monte Paschi May Have Received Solvent-Status "Fudge" To Get Bailout http://implode-explode.com/viewnews/2017-03-28_MontePaschiMayHaveReceivedSolventStatusFudgeToGetBailout.html ``To make sense of the Monte Paschi debate, you have to start with a 2014 law known as the Bank Recovery and Resolution Directive, which sets out the EU's bank-failure rules. The law assumes that if a firm needs "extraordinary public financial support," this indicates that it's failing and should be wound down. In that process, investors including senior bondholders can be forced to take losses.

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An exception, known as a precautionary recapitalization, is allowed for solvent banks if a long list of conditions is met. As the name suggests, this tool isn't intended to clear up a bank's existing problems, such as Monte Paschi's mountain of soured loans. This temporary aid is allowed to address a capital shortfall identified in a stress test.

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"It is unclear if Monte Paschi meets the BRRD's exemption criteria, and their use has the appearance of promoting national political concerns over a stricter reading of the newly established European rules," said Simon Ainsworth, a senior vice president at Moody's Investors Service. "The plan could risk damaging the credibility of the resolution framework, especially given that it would mark its first major test case."

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In the view of some ECB Supervisory Board members, while Monte Paschi cleared the hurdles for aid, its viability was bolstered by unrealistic valuations of its bad loan portfolio, the people said. The board gave the all-clear even though the possibility that Monte Paschi sold junior bonds inappropriately to retail investors wasn't fully reflected in the solvency assessment, they said.

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iehi-feed-61961 Tue, 28 Mar 2017 16:15:22 GMT Pension Crisis Too Big for Markets to Ignore http://implode-explode.com/viewnews/2017-03-28_PensionCrisisTooBigforMarketstoIgnore.html The question is why haven't the headlines presaged pension implosions? As was the case with the subprime crisis, the writing appears to be on the wall. And yet calamity has yet to strike. How so? Call it the triumvirate of conspirators -- the actuaries, accountants and their accomplices in office. Throw in the law of big numbers, very big numbers, and you get to a disaster in a seemingly permanent state of making. Unfunded pension obligations have risen to $1.9 trillion from $292 billion since 2007.

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By some estimates, unfunded liabilities would triple to upwards of $6 trillion if the prevailing yields on Treasuries were used. That would translate into much steeper funding requirements at a time when budgets are already severely constrained. Pockets of the country would face essential public service budgets being slashed to dangerous levels.

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iehi-feed-61959 Mon, 27 Mar 2017 15:48:15 GMT Rich Chinese Race to Apply for a U.S. "Golden Visa" http://implode-explode.com/viewnews/2017-03-27_RichChineseRacetoApplyforaUSGoldenVisa.html As members of Congress in Washington debate raising the minimum required to obtain a U.S. immigrant investor visa from $500,000 to $1.35 million, concern about the hike has set off a scramble among wealthy would-be participants in China.

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At stake if the EB-5 is curtailed is a program estimated to have played a role in creating at least 200,000 U.S. jobs and drawing as much as $14 billion from Chinese investors alone, based on data provided by Rosen Consulting Group and the Asia Society. Past projects taking advantage of EB-5 include New York's Hudson Yards, Hunter's Point Shipyard in San Francisco, and a Trump-branded tower in Jersey City.

New projects recently doing the rounds in China's chat rooms, web forums and hotel-ballroom investor seminars include a 5-star hotel complex in Palm Springs, California, and what's touted as "the world's tallest residential building," on New York's 57th Street, known as Billionaires' Row.

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iehi-feed-61958 Mon, 27 Mar 2017 15:46:23 GMT Fading Trump rally threatened by rare contraction of US credit http://implode-explode.com/viewnews/2017-03-27_FadingTrumprallythreatenedbyrarecontractionofUScredit.html Data from the US Federal Reserve shows that the $2 trillion market for commercial and industrial loans peaked in December. The sector has weakened abruptly as lenders tighten credit, especially for non-residential property. Over the last three months it has dropped at a rate of 5.4pc on annual basis, a pace of decline not seen since December 2008.

The deterioration in the broader $9 trillion market for loans and leases has been less dramatic but it too is shrinking, falling at a 1.6pc rate on a three-month basis. "Corporate lending has ground to a halt and I am staggered that the Fed is raising rates. They have made a very big mistake," said Patrick Perret-Green from AdMacro.

... Credit has tended to pick up signs of trouble several weeks before equity markets in recent episodes of financial stress... Monetary tightening in the US so far this cycle has been equal to 13 rate rises under the Fed's Wu-Xia model, which includes the effects of withdrawing stimulus from quantitative easing. Nobody knows where the pain threshold lies in a global financial system that is more leveraged than at any time in history, including Fed officials themselves.

... Simon Ward from Henderson Global Investors said his early warning indicator - real six-month M1 money - turned negative in February. It has ticked up a little in March but not enough to prevent what would normally be an economic relapse later this year.

... Kevin Gaynor from Nomura says his model of asset pricing suggests markets are in effect assuming global growth of 5pc and earnings increases of 30pc a year. These are heroic. "There is a time decay on this new temporary equilibrium," he notes acidly.

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iehi-feed-61956 Sun, 26 Mar 2017 16:05:17 GMT What Happens to the U.S. Midwest When the Water's Gone? http://implode-explode.com/viewnews/2017-03-26_WhatHappenstotheUSMidwestWhentheWatersGone.html In the coming decades this slow-speed crisis will unfold just as the world needs to increase food production by 60 percent, according to the United Nations, to feed more than nine billion people by mid-century.

The draining of North America's largest aquifer is playing out in similar ways across the world, as large groundwater basins in Asia, Africa, and the Middle East decline rapidly. Many of these aquifers, including the southern Ogallala, have little ability to recharge. Once their water is gone, they could take thousands of years to refill.

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iehi-feed-61955 Sun, 26 Mar 2017 15:49:20 GMT Bridgewater Releases Report on Populism http://implode-explode.com/viewnews/2017-03-26_BridgewaterReleasesReportonPopulism.html iehi-feed-61954 Sun, 26 Mar 2017 15:38:05 GMT The Swamp Drains Trump - KUNSTLER http://implode-explode.com/viewnews/2017-03-26_TheSwampDrainsTrumpKUNSTLER.html