Loans and Finance

Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Wednesday, February 03, 2016

#BTdown


BT has apologised after "several hundred thousand" UK customers had their broadband services cut off yesterday.

Kudos to BT, and its well timed catastrophic technical failure, for ensuring that it will be forced to sell off its broadband business.

There's a sliver lining in every cloud!

Monday, February 01, 2016

$100BN of Frozen Iranian Assets Unfrozen

Ezubao's $7.6BN Ponzi Scheme

The BBC reports that Chinese authorities have arrested 21 people involved in an online finance scheme which is suspected of defrauding 900,000 investors of about $7.6bn.

The 21 people worked for Ezubao, a peer-to-peer lender widely described in Chinese state media as a Ponzi scheme.

Ezubao is believed to be China's largest such online financing business.

Ezubao promised investors that borrowers on its platform would pay back loans at interest rates between 9 percent and 14.6 percent. However, state media said investigations had found more than 95% of the investment offerings on the site were fake.

Thursday, January 28, 2016

Schaeuble Still Wants Grexit


As per The Wall Street Journal:
"Germany’s “powerful finance minister, Wolfgang Schäuble, has long believed that Greek politicians aren’t capable of adapting Greece’s economy to the rigors of euro membership. Mr. Schäuble sees Greece as the weak link not only for Europe’s common currency, but also for Europe’s border controls against migration, and would welcome a new debate about a Greek exit this year, say people familiar with his thinking.
This should come as no surprise to anyone. More to the point, the need for a resolution to the Greek question has been given added impetus by the migrant crisis. The position of the Schengen border is now being used as means to pressurise Greece to implement the agreed reforms.

The bottom line is that Greece must implement the reforms or, in effect, leave.

Wednesday, January 27, 2016

China Says "Ha" To Soros

Tuesday, January 26, 2016

Chinese Statistics Chief Investigated For Corruption

It would appear that the CEO of Total, when he said that no one believes Chinese statistics anymore, was right!

KPMG Audit of HBOS To Be Probed

Monday, January 25, 2016

Greece Will Need Another Bailout

Unsurprisingly Greece, it seems, isn't fixed!

Klaus Regling, the Managing Director of the European Stability Mechanism, has said that he believes that the Greek government will soon be out of liquidity and Greece will need another midterm program with the participation of International Monetary Fund (ie another bailout).

He is quoted by Keep talking Greece:
Greece will not need money tomorrow, but sooner or later there will be a money problem. 

Greece has debt service payments of nearly 4 billion euro in the first quarter [of 2016]. It is very likely that the country has a small primary deficit in the beginning of the year. Therefore, the government will need money to cover budget spending.
That will not go down well in Germany.

Regarding Greek Debt Relief, it is bad news for the Greeks. Regling said that the Eurogroup was committed to Debt Relief after the Program Review is completed.
Economically, the renegotiation of debt is not urgent because Greece has received a grace period of 10 years to repay the debt and the majority of the interest. Therefore, during the next 10 years, the service of the debt will not be increased.  

Consequently, a new debt relief would have an impact on payments, mainly after 2022.”
That will not go down well in Greece!

Friday, January 22, 2016

Total Calls China's Bluff

When people see that the emperor is really naked, he has nowhere to hide.

Wednesday, January 20, 2016

Chinese Growth

#WEF16 Davos Live

Tuesday, January 19, 2016

Twitter Is Back Online

Twitter is now back online, for the moment.

Twitter's Global Crash


Those of you trying to access Twitter at the moment will be having problems, as Twitter is down globally.

The Guardian reports that Twitter has suffered a total outage.

Access to the service began failing over the web, mobile and its API (application programming interface, the system that applications use to speak to the Twitter service) at 8:20am GMT, with error messages warning the network is both “over capacity” and suffering an “internal error”.

The company initially confirmed the outage by, somehow, tweeting, from its @support account. We were unable to see the tweet, because Twitter was down.

Twitter emailed the text of the tweet to the Guardian, which read:
Some users are currently experiencing problems accessing Twitter. We are aware of the issue and are working towards a resolution.
What's the betting that this is the work of a spotty teenager?

We can assume that its share price, which has already taken a battering, will fall further because of this.

Monday, January 18, 2016

Chairman of China Securities Regulatory Commission "Resigns"


As Chinese stocks fall into the abyss, Xiao Gang the chairman of the China Securities Regulatory Commission has offered to resign.

The smoking gun behind his resignation is his "brainchild" the circuit breaker, which in fact made a bad situation worse.

Reuters reports that Xiao's term does not formally expire until the end of 2018.

As to whether his resignation has yet been accepted depends, in part, on how worse things will become. The Chinese will need a fall guy to blame, and then a saviour to "rescue" the market if it ever hits bottom.

Sunday, January 17, 2016

The EU Just Broke!