Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.

Tuesday, November 18, 2014

Yesterday evening saw the Usher Hall in Edinburgh host a meeting between representatives of the City of Edinburgh Council (CEC) and the local rock and pop music scene. The meeting was dominated with local musicians’ complaints over the “zero tolerance” policy Edinburgh is viewed as having adopted towards amplified music.The meeting began with the leading panel — Norma Austin Hart, vice-convener for Culture and Sport; John Stout, promoter from Regular Music; Kevin Buckle, of local store Avalanche Records; and Karl Chapman, manager of the Usher Hall — introducing themselves and outlining the purpose of the meeting. This being best-summarised as a desire to emulate the vibrant music scene of places as far-flung as Austin, Texas and Sydney, Australia.

Councillor Hart indicated officials from Austin had already offered to get involved in improving the live music scene in the city; although none were present from Austin, US-born local musician Pat Dennis provided his frank opinion on where Edinburgh fails to nurture the local music scene: that failure to support a grass-roots, small venue, music scene prevents the city being capable of organising events similar to Austin’s South by Southwest festival outwith August, when Edinburgh hosts the Festival and Fringe.

Coming in for the lion’s share of criticism, staff from CEC’s Licensing Board were visibly uncomfortable when the topic of the “single complainant” was brought up time and time again. Unlike any other business within the city, or residential properties, noise pollution within premises permitted to sell alcohol is not managed by environmental health staff. That responsibility is bundled with the alcohol license, which leaves publicans fearful that their premises will be forced to close if they do not comply with demands to cease use of any amplification, or hosting live music. This was characterised as a ‘tyranny of the minority’, a most-undemocratic approach where one person — for example, recently moved into a property adjacent to a long-established premises hosting live music — could force the closure of a business which has hosted local talent for 30+ years.

Taking heed of the strength of feeling from the majority present, Councillor Hart made a number of personal commitments towards the end of the meeting. Those included setting up a working group, Music is Audible, to look at how the council could better work with venues, and to have a follow-up meeting in March next year.

Saturday, September 8, 2007

Leaders attending the APEC summit in Sydney, Australia have worn Driza-Bone coats for their traditional group photo in front of the Sydney Opera House. In APEC tradition, leaders wear attire which draws inspiration from the host nation’s national costume.

Australia’s choice was made by Prime Minister John Howard and his wife Janette. Australia does not have a national costume. In an APEC statement it was revealed that Driza-Bone had been consulted to produce an outfit that “captures the essence of Australia’s culture and environment.”

“Driza-Bone coats were born over 100 years ago when a sailor fashioned waterproof coats out of windjammer sails for protection against the harsh Australian trade winds,” the statement said.

“These coats were also perfect for people working on the vast Australian continent and have since been adapted into the perfect riding and outback attire.”

The custom-made knee-length coats worn by the leaders were the traditional dark brown of all Driza-Bones and had differing colours for the lapels and linings – slate blue for Australia’s vast coastline, mustard yellow for the sun and sand; red ochre for the outback and eucalyptus green for the bush. Leaders were given the choice over which highlight colour they wanted.

The choice of costume was a closely guarded secret by Australia officials, with speculation rife throughout the media. It has been suggested that the costume could include “budgie smugglers” (male swimwear)- and thongs (flip flops) to represent the beach;blue singlets and shorts favoured by labourers or khaki gear in memory of Steve Irwin.

The group photo is said to be one of the most anticipated parts of the APEC summit, with people wanting to see which leader looks the “silliest”. In the past leaders have been dressed in silk tunics, leather bomber jackets and Batik-print shirts.

Friday, March 20, 2009

The United States House of Representatives approved a measure on Thursday to impose a heavy tax on bonuses to executives from companies that have been bailed out by the government. The bill was passed by a margin of 328-93.

Under the bill, executives making over US$250,000 a year would be charged a 90% tax on bonuses. The tax would apply to firms that have been given at least $5 billion in aid from the government.

The move comes after recent outrage at American International Group (AIG), which gave out $165 million in bonuses to its top executives after receiving no more than $180 billion in government bailouts. AIG has said that the bonuses had to be given out, as the company was legally required by contract to do so.

Nancy Pelosi, the Speaker of the House, said that the bill was necessary because of the bad judgment shown by firms who received bailouts from the government.

“We must stabilize the financial system in order to strengthen our economy and create jobs. We must also protect the American taxpayer from executives who would use their companies’ second chances as opportunities for private gain. Because they could not use sound judgment in the use of taxpayer funds, these AIG executives will pay the Treasury in the form of this tax,” said Pelosi to reporters following the House vote.

The Senate is expected to vote upon a similar version of the bill. If approved, the differences between the two versions would have to be bridged before it could be signed into law.

Friday, October 2, 2009

Companies in the United States are shedding more jobs, pushing the country’s unemployment rate to a 26-year high of 9.8%.

The US Labor Department said on Friday that employers cut 263,000 jobs in September, with companies in the service industries — including banks, restaurants and retailers — hit especially hard. This is the 21st consecutive month of job losses in the country.

The United States has now lost 7.2 million jobs since the recession officially began in December 2007. The new data has sparked fears that unemployment could threaten an economic recovery. Top US officials have warned that any recovery would be slow and uneven, and some have predicted the unemployment rate will top 10% before the situation improves.

“Continued household deleveraging and rising unemployment may weigh more on consumption than forecast, and accelerating corporate and commercial property defaults could slow the improvement in financial conditions,” read a report by the International Monetary Fund’s World Economic Outlook, predicting that unemployment will average 10.1% by next year and not go back down to five percent until 2014.

Mark Zandi, chief economist at Moody’s Economy.com, said that “it’s a very fragile and tentative recovery. Policy makers need to do more.”

“The number came in weaker than expected. We saw a lot of artificial involvement by the government to prop up the markets, and now that that is starting to end, the private sector isn’t yet showing signs of life,” said Kevin Caron, a market strategist for Stifel, Nicolaus & Co.

Also on Thursday, the US Commerce Department said factory orders fell for the first time in five months, dropping eight-tenths of a percent in August. Orders for durable goods — items intended to last several years (including everything from appliances to airliners) — fell 2.6%, the largest drop since January of this year.

The US government has been spending billions of dollars — part of a $787 billion stimulus package — to help spark economic growth. There have been some signs the economy is improving.

The Commerce Department said on Thursday that spending on home construction jumped in August for its biggest increase in 16 years. A real estate trade group, the National Association of Realtors, said pending sales of previously owned homes rose more than 12 percent in August, compared to August 2008.

A separate Commerce Department report said that consumer spending, which accounts for more than two-thirds of US economic activity, rose at its fastest pace in nearly eight years, jumping 1.3 percent in August.

Other reports have provided cause for concern. A banking industry trade group said Thursday the number of US consumers making late payments, or failing to make payments, on loans and credit cards is on the rise. A survey by a business group, the Institute for Supply Management, Thursday showed US manufacturing grew in September, but at a slower pace than in August when manufacturing increased for the first time in a year and a half.

Stock markets reacted negatively to the reports. The Dow Jones Industrial Average fell 41 points in early trading, reaching a level of 9467. This follows a drop of 203 points on Thursday, its largest loss in a single day since July. The London FTSE index fell 55 points, or 1.1%, to reach 4993 points by 15.00 local time.

Friday, August 24, 2007

A police station of the Spanish Guardia Civil was attacked today Friday by a car bomb in the Basque city of Durango, injuring two policemen. It is believed to be the first serious attack of the separatist group ETA since it unilaterally ended a cease-fire in June. The blast caused serious damage to the police barracks in Durango, shattering windows and damaging police cars parked outside. Several nearby apartment buildings were also damaged. Police sources believe the bomb, estimated to contain between 80 and 100 kilograms of explosives, was detonated remotely by one of the two attackers who fled in another vehicle. Another car exploded about one hour later in the town of Amorebieta, possibly the one used by the activists to flee.

ETA detonated two small explosive devices on July 25 along the route that the Tour of France used when the race dipped into northern Spain for a few hours.

ETA called the cease-fire in March 2006, but grew frustrated with a lack of government concessions in ensuing peace talks, and set off a huge bomb in a parking area at Madrid’s airport on December 30, killing two people. It insisted then that the truce was still in effect, but finally declared it formally over in June, and Spanish security forces have been on alert ever since.

Sunday, May 4, 2008

Rescuers in Brazil are seeking a plane that disappeared Friday carrying six people, two local pilots and four British investors interested in a possible new housing development.

The dual-engined Cessna 310, operated by Aero Star, lost contact with Air Traffic Control (ATC) eight miles (13km) off the coast near Ilheus, where it was intending to land in nine minutes time and was making a visual approach to Ilhéus Jorge Amado Airport. The flight had originated in Salvador and made last contact at 5:43 p.m. local time (2043 GMT) with Ilheus control tower.

The four passengers have been identified as Sean Woodhall, Ricky Every, Alan Kempson and Nigel Hodges. The planned development they had been considering is a luxury estate planned by Worldwide Destinations, who Sean Woodhall owns. It is based in Spain and constructs worldwide luxury property developments.

Ricky Every works for Worldwide Destinations, and Alan Kempson and Nigel Hodges are both directors of UK finance company Diamond Lifestyle Holdings, who had been considering a deal with Worldwide. At least three of the four did not live in the UK.

The search for the aircraft is focusing on a location 20 miles (32km) North of Ilheus, where there are eyewitness reports that a light aircraft was flying extremely low and without lights, leading authorities to believe the aircraft loss power. Investigations are probing some reports of witnessing a plane crash, and there are unconfirmed rumours that wreckage has been found.

Brazil’s Coast Guard, three Aero Star helicopters and Bahia state police are all participating in the search. The weather was good at the time and the flight crew hadn’t reported any issues to ATC.

Tuesday, July 27, 2010

An investigation into the fatal 2009 Washington Metro train collision conducted by the National Transportation Safety Board (NTSB) called for new safety and maintenance rules. The report, released today, blamed the crash on the faulty automatic train-control system. The report also cited the use of dated 1000-Series train cars. The 2009 crash, which killed 9 and injured 80, occurred during the evening rush between the Takoma and Fort Totten stations on the Red Line.

NTSB Chairman Deborah Hersman said that the system is currently regulated by state and local agencies. She called for Federal oversight. “Now it’s really time for them to step up to the plate and for Congress to address the issue,” Hersman said during the release of the findings.

In 2009, Hersman told Congress that Federal safety guidelines should be set saying “the state oversight system is not effective, they don’t have any teeth.” Currently the Federal government has control of interstate transit systems, not regional or local transit systems.

The Washington Metropolitan Area Transit Authority (WMATA) said yesterday that it would replace all of it’s 1000-Series trains with newer models. After the crash, then WMATA general manager, John Catoe said that “the system is safe.” WMATA’s interim general manager Richard Sarles said that “We are committed to considering and following through on the findings and recommendations.”

Thursday, March 15, 2012

A third call for boycott and second boycott hit the German online travel agency Hotel Reservation Service (HRS) this week. After a recent boycott against HRS in Münsterland, a boycott in Bremerhaven was next and is soon to be followed by the next round in Bremerhaven starting in the middle of March.

Hotels in the city of Bremerhaven already have to pay a new “bed tax” to the state of Bremen of 2.14 euro per person per night, whilst HRS is trying to increase their commission payments for its service from thirteen to fifteen percent. Further criticism of HRS focused on a preferential treatment clause that denied hotels the right to offer better prices through any other booking channel. The European umbrella organization of the catering facilities HOTREC had already criticized this type of clause and similar contract clauses in May 2011 in a position paper.

Piet Rothe, hotel owner and second chairman of the German Hotel and Restaurant Association (DEHOGA) Bremerhaven, explained that in his hotels the boycott hat not decreased bookings, merely shifted their volume to other channels such as, for instance, booking.com, who would only ask for twelve percent commission.

Rüdiger Magowsky, manager of the boarding house in Jaich, confirmed the observation that the volume of bookings had not decreased.Martin Seiffert, manager of the hotel Haverkamp, explained HRS had denied his hotel access to the system because he participated in the boycott. The access has been restored but he is considering participation in the next round of the boycott anyway.

On February 15 the higher regional court of Düsseldorf had ordered HRS in a preliminary injunction not to enforce its preferential treatment clause. Already on February 10 the German Federal Cartel Office had admonished the company for violating §§ 1 and 20 of the German Act against Restraints of Competition.

Meanwhile Markus Luthe, the CEO of the German International Hotel Association (IHA), recommended establishing a “Hotelwiki” as a yellow pages directory of the hotel industry.

Tuesday, August 11, 2015

Two people were killed yesterday afternoon and another seriously injured in Västerås, Sweden. The injured man is considered a suspect in the knife attack and was arrested in hospital. Another man was arrested at the scene, which was an IKEA furniture retailer. According to police, the two fatalities do not have any obvious connection to the suspects, but did know each other. The motive is, thus far, unknown.

Police were called to the scene at 13:00 local time and found three stab victims. Initially, all three were considered victims, but the status of one has been changed to suspect. The other two, a man and a woman, subsequently died from their wounds. Police have said CCTV is helping in the investigation. Local newspaper Vestmanlands Läns Tidning (VLT) has reportedly posted footage of one of the suspects being tackled by police.

VLT has further claimed to have identified the two victims as a mother and son, aged 55 and 28 respectively. According to the paper, the victims were not local residents, but did have a connection with Västerås, where they were vacationing at the time of the attack, which a police spokesperson has called “an act of madness” ^{((sv))Swedish language: ?En galen händelse}.

“This is the worst working day of my life” ^{((sv))Swedish language: ?Det är den värsta arbetsdagen i mitt liv}, said Mattias Johansson, the store manager of IKEA in Västerås, to Sveriges Television. IKEA spokesperson Anna Pilkrona-Godden told BBC News, “Our thoughts are with those affected,” and said the store is closed for the time being.

Västerås is in central Sweden, approximately 115 km (70 miles) west from the capital Stockholm. The population is roughly 110 thousand.