Wakahuia

.

Merrill Lynch, one of the most famous names in banking, has denied allegations that it engaged in what would be the biggest case of insider trading in Australian corporate history.
As revealed in on Saturday, David Waterhouse of the famous Sydney racing family alleges that executives at Merrill Lynch knew the bank would make an “awful” announcement in New York on January 18, 2008, and used that information to short-sell $55 million worth of shares in blue-chip Australian companies, including BHP Billiton and Commonwealth Bank, that would be affected by the news. Merrill Lynch has already commenced proceedings to recover in excess of $9 million owed to it by How Trading and David Waterhouse.
In a statement issued today, the investment bank declared: “Merrill Lynch completely rejects the allegations of insider trading which have been the subject of recent press coverage. . These proceedings are set down for trial next Tuesday.2million that it says it is owed.
Berndale is suing How Trading for $9.
According to the witness statement provided by Mr Waterhouse, which has seen, Merrill Lynch and Berndale employees in Australia and Asia were aware that head office in New York was about to release “awful” news. How Trading has a $4million counter-claim for unjust enrichment and damages for breach of contract.
The statement says he was told at that meeting that the “market has gone against you” and he would lose control of How Trading’s account.
In his statement, Mr Waterhouse says he was told this at a meeting at Merrill’s Sydney office on January 14 – three days before the New York announcement. It’s not going to be bad, it’s going to be awful and this market is going to plummet on Friday and may fall leading up to the result, as it will start to leak out.
It says he was told: “The market is expecting Merrill Lynch in New York to come out with a bad result on Thursday night.
“Do yourself a favour: do not write any puts whatsoever this week. I know you have other accounts with other brokers. We will close out your risky positions as quickly as possible. We’ve known a little bit about this before you got into trouble and the market is starting to wake up that the financial world is in for a lot of pain and trouble.
Mr Waterhouse claims a Merrill Lynch employee at the meeting told him: “We wanted you done and dusted before our head office reported their results this week.”
It is expected that Merrill Lynch will object to any of Mr Waterhouse’s untested insider trading allegations being read in court. Now we have to do some heavy things straight away today. That time has come and gone. It’s a great opportunity for you, that we know what is coming this week.
“We will short the hell out of stocks in the market that you have option positions on, maybe up to $100million, which will more than match your option positions.”
Mr Waterhouse says he was told How Trading’s losses would be contained at $5million and that, if the short-selling plan worked, “we maybe give you money back”.”
Mr Waterhouse says he was told How Trading’s losses would be contained at $5million and that, if the short-selling plan worked, “we maybe give you money back”.
mhawthorne@theage.com.au
The Age

.

A major expansion of Queensland’s Yarwun alumina refinery has suffered a setback, amid uncertainty over a $US19.5 billion ($24.3 billion) deal between Rio Tinto and Chinalco.
It is the second time Chinalco’s participation has been extended, after an earlier deadline of March 31 was pushed back to May 31.
The deadline by which Aluminum Corporation of China (Chinalco) had agreed to its participation in funding the Yarwun expansion had been extended from May 31 to June 15, Rio Tinto said in a statement on Monday.
In a separate deal Chinalco agreed to take a 50 per cent stake in the original Yarwun refinery for $US500 million under a proposed $US19.
Chinalco plans to fund part of the expansion costs of the refinery, known as Yarwun 2, incurred after the agreement was reached.5 billion deal with Rio Tinto announced in February.
The project will cost about $US1.
But with shareholders concerned about aspects of the deal and Australia’s Foreign Investment Review Board (FIRB) yet to green-light the tie-up, Chinalco’s participation in Yarwun 2 is unclear.4 million tonnes by 2011.8 billion and more than double the refinery’s production, from two million tonnes of alumina to 3.
Rio Tinto said the extension on Chinalco’s participation was requested by the Chinese state-owned company to allow it to complete its project evaluation and approvals processes.
Yarwun 2 was approved in July 2007 and is 29 per cent complete. .
Client adviser with Bell Potter Securities, Chris Kimber, said if Chinalco decided not to fund their portion of Yarwun 2 Rio Tinto would find other investors for the project…
He said a question mark over Chinalco’s huge tie-up with Rio Tinto may have been a factor in their decision to delay their involvement in the project. If one pulls out I am sure they have other people waiting to talk,” Mr Kimber said.
The move comes amid ongoing debate about Chinalco’s planned investment in Rio Tinto.
“Theoretically every deal is meant to be independent, but politically that is not always the case,” he said.
Ian Melrose will use images of the Tiananmen Square massacre to highlight his opposition to the planned deal.
TV ad with Tiananmen images
Meanwhile, an Australian businessman plans to spend $200,000 this week on a TV advertising campaign to reinforce opposition to the Rio Tinto-Chinalco deal.
“It will do it (Australia’s relationship with China) no good at all,” Mr Barnett said.
West Australian Premier Colin Barnett said on Monday linking Tiananmen to the deal was inappropriate and potentially damaging.
Rio Tinto’s deal with Chinalco would help the miner pay down its debt, estimated at about $US38.
Rio Tinto’s deal with Chinalco would help the miner pay down its debt, estimated at about $US38.7 billion.

Syndicate content. Copyright 1996 – 2009.

More here:
Do you celebrate the Queen's Birthday? | Republican Movement of …

Powerpoint presentation outlining a novel approach to teaching students, residents, and faculty about self-care, awareness of others, and mindfulness/meditation . Website is www.fammed.wisc.edu/aware-medicine. View original post here: …

Go here to see the original:
Mindfulness Meditation » Aware Medicine: Self-Exploration, Self …

Jon Kabat-Zinn Audio Book CD

Now available for wholesale, No. 6 is expanding its signature clog boots line. page 1.

Here is the original:
Women's Buzz: No. 6… Sam Edelman… – Footwear News – WWD.com

Mindfulness Meditation

Megan Edelman : I live in beautiful Abbotsford, BC. Formerly an island girl, but have come to appreciate the mainland

View post:
Starbucks and Sippy Cups: summer swaddling

Edelman CD

.

US Treasury Secretary Timothy Geithner urged China on Monday to allow its exchange rate to become more flexible, kicking off a two-day visit to Beijing expected to focus on the global economic crisis.
In a speech at Peking University, Geithner was to praise Beijing’s strategy to address the downturn, saying efforts to stimulate domestic demand would create jobs and balance economic growth.
“Greater exchange rate flexibility will .
“An important part of this strategy is the government’s commitment to continue progress toward a more flexible exchange rate regime,” Geithner said, according to an advance text of his speech…”
Geithner created waves at his confirmation hearing in January when he said in a written reply to a senator that US President Barack Obama “believes that China is manipulating its currency”. encourage resource shifts to support domestic demand, and provide greater ability for monetary policy to achieve sustained growth with low inflation in the future. .
In April, Obama’s administration said China had not manipulated its currency to snare a competitive advantage, but insisted that the yuan remained undervalued.
Thanks to its export-oriented economy, China has built up the world’s largest forex reserves, with much of its nearly $US2 trillion ($2.
For years, the United States has urged Beijing to deepen the reform of its exchange rate regime, hinting that China kept the value of the yuan, or renminbi, artificially low to boost exports.
One of the main purposes of Geithner’s visit is to reassure China that its massive US bond holdings are safe despite Beijing’s concerns about Washington’s rising debt, officials in Washington said.5 trillion) in foreign exchange coming from huge surpluses with the United States.
AFP

.

The principal events marking GM’s troubled path over the past 18 months, with the once mighty automaker expected to file for bankruptcy.
JANUARY 2008
— Toyota comes close to overtaking GM as the world’s biggest automaker, a title GM has held since 1931. GM sells 9.366 million.369 million vehicles in 2007 while the Japanese automaker sold 9.7 billion ($48.
FEBRUARY 2008
— GM posts a $US38.19 billion) annual loss for 2007 and announces plans to eliminate the jobs of 74,000 unionised workers in the United States. GM is forced to shut many of its plants and takes a $US1.
MARCH 2008
— A two-month-long strike begins at key supplier American Axle.24 billion) hit.8 billion ($2.
JULY 2008
— GM announces plans to slash its white collar workforce by 20 per cent, double truck production cuts to 300,000 units and bolster its liquidity by $US15 billion ($18.
APRIL 2008
— GM slashes production of trucks and sport utility vehicles by 140,000 units in the wake of poor sales.68 billion) through internal operating actions, asset sales and the capital markets.68 billion) through internal operating actions, asset sales and the capital markets.3 billion). .
OCTOBER 2008
— Merger talks between GM and Chrysler heat up as US sales collapse amid a deepening recession.
SEPTEMBER 2008
— GM marks its 100th anniversary.
— GM, Chrysler and Ford executives head to Washington to request billions in emergency loans.
NOVEMBER 2008
— GM announces October sales fell 45 per cent amid the US auto industry’s worst performance in the post World War II era.
DECEMBER 2008
— GM announces plans to cut another 31,000 jobs by 2012 and idles a third of its US factories.
— Merger talks with Chrysler are dropped.3 billion ($16.
— The White House offers GM and Chrysler $US13.
— The Canadian government offers $US3.
— The Canadian government offers $US3.3 billion ($4.11 billion) US dollars in aid to GM and Chrysler.
JANUARY 2009
— Toyota claims the crown of world’s biggest automaker after selling 8.97 million vehicles in 2008. GM’s global sales have fallen to 8.35 million vehicles.
— Industry data shows 2008 US auto sales were down 18 per cent. GM’s sales fell 23 per cent.
FEBRUARY 2009
— GM and Chrysler present restructuring plans to the US Treasury. GM asks for another $US16.6 billion ($20.67 billion) in loans and says it will cut 47,000 jobs worldwide this year. That will bring its global workforce down to 200,000 from 335,000 in 2005.
— GM asks Canada to boost its loans to $US6 billion ($A7.47 billion).
— GM a $US31 billion ($38.61 billion) loss for 2008, bringing its cumulative losses since 2005 to $US86 billion ($107.1 billion).
— GM washes its hands of Saab after the Swedish government refuses to bail out the troubled unit. Saab seeks legal restructuring protection to avoid bankruptcy.
MARCH 2009
— GM’s auditors express “substantial doubt” about its ability to stay afloat in the automaker’s annual report.
— Longtime chief executive officer Rick Wagoner resigns at the request of the White House, which tells the automaker to come up with a better viability plan.
APRIL 2009
— GM deepens its restructuring plan to cut more jobs, eliminate Pontiac and Saturn, shrink its dealer network by 42 per cent by 2010.
— Attempts to swap $US27 billion ($33.62 billion) in debt for a 10 per cent stake in common shares.
— Idles 13 plants for “multiple weeks”.
— Enters talks to sell a major stake in Opel.
MAY 2009
— Posts a first quarter loss of $US5.9 billion ($7.35 billion) as quarterly production is slashed by 40 per cent, or 903,000 units.
— Reaches cost-cutting deals with its US and Canadian unions.
— Receives another $US4 billion ($4.98 billion) in US government loans, bringing total to $US19.4 billion ($24.16 billion).
— Creditors holding about 54 per cent of General’s Motors bonds approved a restructuring plan proposed by the US Treasury.
JUNE 2009
— GM was due to file for bankruptcy in New York, hoping to reemerge a leaner but viable car company.
AFP

.

Qantas and Woolworths have combined loyalty programs in a bid to secure more market share.
The plan means members of the airline’s frequent flyer program will receive one point for every dollar over $30 spent at Woolworths and some of its other chains.
The deal was first announced in December 2008 and forms part of a broader restructure of the airlines’ loyalty program.
The scheme was launched for staff on Monday and will start on June 22 for customers.
“That’s really a question for (CEO) Alan Joyce and the board to ponder.
Qantas’ frequent flyer chief executive Simon Hickey would not be drawn on whether the announcement would help in a possible float of the frequent flyer business.
He confirmed shoppers at Big W, Woolworths branded petrol stations, Dick Smith Electronics and Woolworths Liquor would also be able to take advantage of the new partnership. I’m not spending any time on examining on that,” Mr Hickey said in a media conference call.6 million members while there are three million participants in the Woolworths scheme. .

.

The economy is showing signs of stabilising, with healthy retail and home sales in April and stronger factory orders in May.
Headwinds for the corporate sector remain, however, with weak corporate profits and falling inventories suggesting Australia may experience a “business recession” in the coming months.
Retail sales rose 0.35 billion for the month, the Australian Bureau of Statistics said today.3 per cent in April, seasonally adjusted, with consumers spending a record $19.2 per cent increase in March. That follows a 2.
“These figures support a Government examining to justify its stimulatory measures,” said Moody’s Economy. “It suggests Aussie households are in a lot better position than households in other major industrial economies.com’s Matt Robinson. .”
In October, the Government released its first round of stimulus cash payments, which were aimed at pump-priming consumer spending to help stave off a recession.9 per cent, seasonally adjusted, the ABS said, along with clothing and accessories, which rose 0.
Sales of household goods climbed 3.8 per cent in April.8 per cent in April. Takings at cafes and restaurants slumped 0.8 per cent, seasonally adjusted, in the month, as consumers put off larger purchases.
Signs of life
April home sales also posted a gain, rising 0.5 per cent. Home sales were 3.5 per cent, the Housing Industry Association said, suggesting the RBA’s low interest rates and the Government’s boost to the First Home Owners grant is having its desired effect.
“These sales are clearly boosted by lower mortgage rates and ex-renters taking advantage of the first home owners scheme before the mid-year expiry date,” the TD Securities economist Annette Beacher said in a statement.1 per cent higher in March.
The Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index rose by 7.
With both retail sales and home sales reflecting Government efforts, an unofficial reading of the nation’s manufacturing trade strengthened, albeit slightly.5 points in the month of May, seasonally adjusted, the highest level in seven months.5 points in the month of May, seasonally adjusted, the highest level in seven months.
While still below the 50-point mark, which separates expansion from contraction, the PM Index “may indicate that stimulatory fiscal and monetary policy is having a stabilising effect,” said Australian Industry Group chief executive Heather Ridout in a statement.
Nonetheless, a “business recession” may be on the cards.
A ‘business recession’
The generally stronger figures in home and retail sales came alongside weakness in the economics readings important to business. Ms Beacher sees the divide as evidence of the possibility of the slowdown hitting businesses more directly than consumers.
Australia’s recession is “intertwined” with a glut of business investment created during the boom years, which could weigh heavily on corporate profits and expansion in years to come. Continued…