Tag Archives: markets

Tight Schedule

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Negotiations are in progress on the nature of the, primarily economic, relationship between Great Britain and the European Union now that the former has taken its leave of and independence from the former. The relationship being negotiated is primarily economic; although, law enforcement, judicial cooperation, foreign policy, security, and defense are under discussion, also.  The functional deadline for these negotiations is 31 December 2020, after which the Brits have said they’re done, deal or no deal.

Ten rounds of meetings are scheduled every three weeks from Monday, March 2, until October when a deal is desired.

Following which enacting legislation would need to be passed by both sides in order to bring the deal to life. “Most experts” think this is a tight schedule.

It need not be, though: the putative tightness of this schedule is directly and strictly a function of the degree of intransigence that will be exhibited by the EU’s negotiators.  I hold out no great expectations here; the EU has been operating in bad faith, using its position to discourage other dissatisfied nations from going out from the Union, ever since the Brits voted for sovereignty.

In this current round of negotiations, too, the Brits appear more serious than the EU.

UK Prime Minister Boris Johnson threatened to accelerate [the schedule] further last week, saying the UK would end talks as early as June if negotiations had failed to progress by then.

It needn’t be a tight schedule, nor need it be “tightened” further. Again, that’s up to the continental Europeans.

Sadly, the EU’s intransigence is demonstrated in a couple of areas:

  • EU wants the UK to enact EU regulations and laws regarding business subsidies, labor law, the environment
  • EU wants its Common Fisheries Policy to apply in British territorial waters, especially British coastal waters

Nor is the matter of EU labor movement entirely settled; the EU still hopes for free access—essentially waiver of British national borders—for EU workers to British territory.

These run directly counter to Great Britain’s national sovereignty; of course, the continental Europeans know this full well. It’s why they demand these accessions.

The Value of Debt

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There seems to be little in the People’s Republic of China, at least with respect to government and government-backed debt.

Bond investors who put their faith in Chinese state-owned enterprises are swallowing another bitter pill, just two months after an earlier wake-up call.
This week, the province of Qinghai persuaded a narrow majority of investors holding dollar debt with a face value of $850 million to sell their holdings for as little as 37 cents on the dollar….
The tender came two months after a similar debt purchase and exchange deal involving bonds issued by Tewoo Group, a commodity trader based in the northern port city of Tianjin.

As someone else once said, I am altering the deal. Pray I do not alter it further.

Buying An Election

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…by buying access to and advertising on private, personal social media accounts.

Michael Bloomberg’s presidential campaign is hiring hundreds of workers in California to post regularly on their personal social-media accounts in support of the candidate and send text messages to their friends about him.

It’s the Bloomberg way. And it’s what we can expect from a Bloomberg administration: circumventing laws, unethically and amorally, if not strictly violating them, at convenience, along with going around the parameters laid out by private enterprises, again unethically and amorally if not openly violating them, for personal political gain.

It’s also illustrative that Bloomberg doesn’t even believe his own words, his own message, his own policies; he feels constrained to pay strangers to tout them, rather than persuading them with the legitimacy of his offerings to do so.  After all,

Most campaigns encourage their supporters to post on social media about their candidates, but paying them at this scale to express support on their personal accounts is unusual, experts say.

This Loss is No Loss

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Recall the fact of the tweet that the NBA’s Houston Rockets General Manager sent in support of the Hong Kong freedom protesters.  Recall further the NBA’s abject cowardice in deeply kowtowing to the People’s Republic of China in response to the latter’s projected upset over the tweet and the NBA’s impudence.  The kowtowing was rationalized from the league on down to individual players that they all had money at risk from the GM’s tweet—as if their personal pocketbooks could compare with the sacrifices of life and limb, in addition to economic loss, of those freedom protesters as they struggled for their basic freedoms.

That cowardice was only emphasized, not mitigated, by NBA commissioner Adam Silver’s refusal to tell his teams they had to limit what they said. That came lately.

Recall further, the hoo-raw over the picayune nature of the NBA’s kowtowing and the cynically fiscally-driven rationalizing in which the NBA engaged in defending its response to the PRC government—and its institutional abandonment of those Hong Kong freedom protesters.

Now some information is coming out regarding the cost of the NBA’s behavior—the cost to those pocketbooks the NBA has been so desperate to protect.

The loss “will be in the hundreds of millions,” NBA commissioner Adam Silver said on Saturday, the first time he’d used such a number to estimate the cost to the league’s China business. The hit amounted to “probably less than $400 million,” Silver said in response to speculation that the losses could reach $1 billion….

Silver added,

We were taken off the air in China for a period of time, and it caused our many business partners in China to feel it was therefore inappropriate to have ongoing relationships with us.

The NBA is still receiving only greatly reduced coverage in the People’s Republic of China.

This isn’t a cost, or a loss. It’s the beginning (and, sadly, probably the end) of the price the NBA should pay for abandoning our American principles, and with them the good people of Hong Kong, in favor of the good opinion of an American enemy.

Telecommunications and Backdoors

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It turns out that Huawei has been able to use legislatively mandated backdoors into telecommunications software—backdoors ostensibly for the sole benefit of law enforcement, and then only usable within judicially allowed limits, search warrants duly sworn, in the US, for instance—for years.

But we would never do that, says Huawei in its wide-eyed innocence.

“The use of the lawful interception interface is strictly regulated and can only be accessed by certified personnel of the network operators. No Huawei employee is allowed to access the network without an explicit approval from the network operator,” the [senior Huawei] official said.

The existence of the interface is the access pathway. The bar to its use is wholly a matter of the integrity of the humans involved. This is not a hard concept to understand; Huawei’s management is being disingenuous to pretend otherwise.

Further, PRC law requires PRC companies to cooperate with the government on the government’s demand.

Huawei “has never and will never do anything that would compromise or endanger the security of networks and data of its clients,” the company said.

Huawei’s CEO Ren has also made that preposterous claim. He and his management team insult our intelligence, assuming as they do that we would believe that Huawei would actually defy the PRC government.