Saturday, June 30, 2012


 Best Selling Prescription Drugs In The United States

Pills

This and last year were big years for the so called "patent cliff", where drug makers started to face generic competition on some of their biggest money makers.This included some of the biggest drugs in history, including Lipitor and Plavix. Chasing blockbusters is dangerous. AstraZeneca, which has focused on such drugs, recently saw its CEO depart as earnings plunged.
Only a fraction of drugs succeed,  but a look at how much a blockbuster is worth makes it clear why companies continue to chase them.
Here are some of the key facts:
  • The top 20 drugs in the United States accounted for $319.9 billion in sales in 2011. 
  • The most lucrative drugs of the top ten were those that attempt to prevent heart disease, followed by those that treat depression.
  • AstraZeneca has the most drugs in the top ten with three, followed by Bristol-Myers Squibb with two.
  • Four of the top ten drugs have recently lost patent protection in the United States, with another joining later this year.

Lipitor - $7.7 billion

Lipitor - $7.7 billion


Company:
Pfizer US sales in 2011:
$7.7 billion

What does it do: 
Lipitor (atorvastatin) lowers LDLs or "bad cholesterol", reducing the risk of heart attack and stroke.
Important dates:
Approved December, 1996. US patent expired November, 2011.  
The future: 
Pfizer made an effort to keep up sales against generics by aggressively advertising the drug even after the patent expired.. It quietly halted the effort earlier this year. Lipitor sales plunged 42 percent in the first quarter this year.

Plavix - $6.8 billion

Plavix - $6.8 billion


Company:
Bristol-Myers Squibb/Sanofi Aventis US Sales in 2011:
$6.8 billion
What does it do:
Plavix (clopidogrel) is an anti platelet agent used to prevent clots, helping prevent heart attacks and strokes.
Important dates:
Approved November, 1997. US patent expired May, 2012.  
The future:
Several generic versions of the drug were approved on May 17th and are now on sale. Both Bristol Myers Squibb and Sanofi have aggressively pursued acquisitions and new research to make up for the loss of their biggest money maker.

Nexium - $6.2 billion

Nexium - $6.2 billion


Company:
AstraZeneca US Sales in 2011:
$6.2 billion
What does it do:
Nexium (esomeprazole) treats acid reflux disease by reducing the amount of acid in the stomach.
Important dates:
Approved March, 2000. US patent expires May, 2014.  
The future:
Generic drugmaker Teva won't enter the US market until 2014, but there is already generic competition in Europe. Declining sales have significantly impacted earnings.

Abilify - $5.2 billion

Abilify - $5.2 billion


Company:
Otsuka, Bristol-Myers Squibb US Sales in 2011:
$5.2 billion
What does it do:
Abilify (apriprazole) is an antipsychotic and antidepressant.
Important dates:
Approved November, 2002. US patent expires October, 2014.  
The future:
The patent expires in around two years, but a generic will not be available until at least 2015. Still, its an addition to an already steep patent cliff after the BMS lost Plavix.

Advair - $4.6 billion

Advair - $4.6 billion


Company:
GlaxoSmithKline US Sales In 2011:
$4.6 billion
What does it do:
Advair is an inhaled combination of fluticasone and salmeterol for the management of chronic asthma.
Important dates:
Approved August, 2000. US patent expired March, 2012.  
The future:
Though the exclusive patent on the drugs expired in March, GSK isn't seeing generic competition yet. Both Teva and Sandoz (a division of Novartis) have yet to replicate it. GSK is seeking approval of Relovair, a successor drug.  

Seroquel - $4.6 billion

Seroquel - $4.6 billion


Company:
AstraZeneca US Sales in 2011:
$4.6 billion
What does it do:
Seroquel (atorvastatin) is an antipsychotic used to treat schizophrenia, bipolar disorder, and depression.
Important dates:
Approved September, 1997. The US patent expired September, 2011, but a pediatric extension ran until March of this year.  
The future:
The patent expired in Canada earlier, so generic versions already exists. The big hit to sales of Seroquel has yet to come, but sales across the company are down 11 percent, and the CEO just departed.   

Singulair - $4.6 billion

Singulair - $4.6
                              billion
Company:
Merck  US sales in 2011:
$4.6 billion
What does it do:
Singulair (montelukast) is used to treat asthma and seasonal allergies.
Important dates:
Approved February, 1998. US patent expires August, 2012.  
The future:
Singulair sales could decline by one half or more after it starts to face generic competition in the United States starting in August.

Crestor - $4.4 billion

Crestor - $4.4 billion
Still don't eat this.


Company:
Shionogi, AstraZeneca US Sales in 2011:
$4.4 billion
What does it do:
Crestor (rosuvastatin) is used to reduce cholesterol prevent heart disease.
Important dates:
Approved December, 1996. US patent expires November, 2016.  
The future:
With Lipitor's patent expiration, an alternative medication became even cheaper, but the US patent is in force for another 4 years.   

Cymbalta - $3.7 billion

Cymbalta - $3.7 billion


Company:
Eli Lilly  US Sales in 2011:
$3.7 billion
What does it do:
Cymbalta (duloxetine) is a drug used to treat depression and anxiety.
Important dates:
Approved in August 2004, US patent expires in June, 2013.   
The future:
Lilly recently lost exclusivity with its another anti-psychotic Zyprexa which is facing several genetic competitors. The loss of Cymbalta will further pressure revenues.

Humira - $3.5 billion

Humira - $3.5 billion


Company:
Abbott Laboratories US Sales in 2011:
$3.5 billion
What does it do:
Humira (adalimumab) is an anti inflammatory used in autoimmune disorders like rheumatoid arthritis and Crohn's disease.
Important dates:
Approved December 1998, US patent expires December 2016.   
The future:
Humira has some time to go under its current US patent. Sales are expected to rise over the next few years, Reuters expects it to be the top selling drug in the world for 2012, passing Lipitor.

Friday, June 29, 2012

這兩天,在Facebook中看到最多朋友轉載的照片,就是這張「水馬圍城迎胡總」:



朋友A就以這張英女皇1975年訪港照片,「事頭婆」被人群、記者包圍照片回應:



「事頭婆」到訪「佔領」的殖民地,尚且如此親民,香港回歸、偉大祖國主席到訪自己的地方,反而要拿水馬將自己圍住,中共領導人面對自己人民的膽量,連英女皇面對殖民地子民也不如!或許,香港不是「回歸」偉大祖國,而是「被回歸」偉大祖國。

Thursday, June 28, 2012

京骂「放他×的屁」


恒大被指涉违法买地 股价泻11%市值蒸发80亿

恒大(3333)昨遭Citron Research发表的研究报告质疑账目造假,实质资金为负360亿元(人民币,下同),又指公司涉嫌违法买地,公司股价昨遭洗仓,最多暴跌19.6%至 3.6元,亦拖累其他内房股股价下挫。午间管理层发表强硬反驳,主席许家印更进入「暴走」状态,以「京骂」回应,更指有关行为可以枪毙,其后 股价止跌回升,但最终仍跌11.38%至3.97元收市,市值蒸发近80亿元。

 受到报告狙击后,恒大昨日午间即发出通告指有关报告失实,再于午后召开分析员电话会议反驳。恒 大主席许家印多次作出「京骂」,以「放他×的屁」回应报告指控公司违法买地,又指整份报告全属造谣,行为 「纯粹他×的抢劫」。

指全属造谣「可以枪毙」

 他又指,有关行为于内地「可以枪毙」,公司会积极研究是否可用内地法律起诉,并 号召小股东「团结一致,坚决打击造谣抢劫」,而且「有钱出钱,有力 出力」,维护自己利益如果「每个人都出力,他(发报告者)就死定 了」,且一定可以「将他打得落花流水」。

 除了京骂及希望枪毙「造谣者」外,许家印仍未解气,多次以强硬的用词批评有关报告,指有关公司 「肯定是皮包公司」(空壳公司),自己看到报告后「气死了,都没吃饭」,怒批有关报告如同抢劫,发表报告者为「强盗」,「太 无耻」,公司感到「非常气愤,无法忍受」,指「正 义一定可以压倒邪恶」,管理层昨日傍晚会来港,并组职强大的律师团,透过法律手段维护公司权 益,「跟他没完」。

公司现金余额逾200亿元

 「暴走」过后,许家印亦冷静回应了报告中多个质疑, 他强调当前现金充足,经营非常健康,虽然由于去年11月起至今年3月,房地产进入低潮,销售低迷,使公司现金流减少,但公司现金最低亦没有低 于130亿元,随着4、5月销售回升,当前「现金余额没有去年多,但不在200亿元以下」,他又指,6月销售较5月为好,未来「每月都会好一 点」。这位大老板再称,上市公司账上有多少现金很清楚,不可能造假,认为报告「太荒唐」。

 许家印续指,公司原定上半年完成全年销售目标800亿元的40%,当前已经超额完成,全年销售亦一定可以超额完成,相信随着销售好转,未来 每个月现金都会增加。他补充,6月至8月,公司每月均有约6至7个项目推出,而9月后推盘量更会增至10个以上。
3333 - 图表 Stock Chart

6月22日消息,据港媒报道,研究机构Citron(香橼)发表报告,“唱衰”(唱空)恒大(3333)涉嫌造假,令人担心唱空民企新一波又 来临。Citron的报告声称恒大资不抵债等,令该股昨日惨被洗仓,股价最多曾跌近两成,收市跌幅虽收窄一半至跌一成,但成交急增至 37.14亿元(港元,下同),位列成交榜首位,占主板成交7.9%,汇控(005)、中海油(883)及腾讯(700)三大蓝筹成交加起 来,也没恒大多,反映了恒大沽压之大。其中,恒大沽空金额2.53亿元,位居港股第三大沽空榜。

  香港文汇报报道,市场人士指出,该股以高成交地下挫两成,也出乎他意料,相信沽空的大户是有部署的行动,民企股可能再被“空军”狙击。

 
信 任危机突袭香港上市民企 浑水称将再次出击


3月至今,香港市场的内地民企股频频爆出坏消息,先是博士蛙、大庆乳业的审计师先后辞职,而后包括霸王国际、永晖焦煤等公司的负面消息被进一 步放大。牵涉其中的上市公司股价跌幅惨烈,股价一落千丈,跌幅最大者人和商业已超过46%。

去年第二季度,香港曾爆发过一波同样惨烈的民企股洗盘潮,受波及的股票跌幅几乎都在40%以上。而始作俑者便是闻名资本市场的浑水研究公司。

尽管此次市场已陷于恐慌,但没有人知道幕后是谁在“操纵”。上周蛰伏已久的浑水,终于未能按捺住,其创始人卡森·布洛克放言,未来数星期将发 表新一份“出售评级”民企报告。一年之后,浑水研究再度卷土重来。

浑水称将再次出击

上周,浑水研究创办人,卡森·布洛克接受美国媒体CNN访问时表示,已经注意到香港市场最近频频传出的民企坏消息,比如会计师事务所德勤忽然 辞去博士蛙和大庆乳业的核数工作。他又指出,做假民企一向集中在欧美市场上市,但该趋势已见放缓,因自从浑水等机构力数民企不是及主张沽售民 企后,西方投资者已对民企起了戒心。

值得注意的是,卡森·布洛克还强调,未来数星期将发表新一份“出售评级”民企报告,不过他并未透露相关民企的身份。

浑水研究英文全称Muddy Waters Research,浑水公司官方网站上面并未披露公司的办公地址、联系电话等相关信息。但该公司在香港办事处的注册地址位于九龙尖沙咀柯士甸道122号丽 斯广场19层D室,成立于2010年6月28日。从2009年开始,浑水研究开始频频露脸北美资本市场,而其发出的研究报告杀伤力惊人,先后 发出针对四家在北美上市的中国公司,东方纸业、绿诺科技和中国高速传媒等,这些公司或股价暴跌,或被交易所停牌或摘牌。

时隔一年,浑水研究卷土重来。不过这次的范围更广,受波及的企业已经不限于小型民企,范围已扩大到规模更大的公司,甚至一些老牌蓝筹。

上市民企风波不断

过去的3月份,香港股市频频出现由审计师辞职引发的信任危机。3月15日,童装业公司博士蛙公告称,审计师德勤·关黄陈方会计师行于3月31 日辞任,理由是“尚有若干其所需的与其审计相关的信息仍未获得,或者管理层提供的解释不足以令其满意,造成其无法完成审计。”而博士蛙公司也 因此将无法在3月底前公布年度业绩。

此消息一出,市场恐慌的情绪迅速蔓延,当天博士蛙股价跌幅近46%,直至停牌。香港会计业一人士表示,上市公司财务报告若作假,审计师如果知 情不报,将负有重大责任,一般审计师不会牺牲自己前途替公司隐瞒。审计师的非正常辞任,会让市场对这家公司失去信任。

坏消息不断蔓延,此后包括大庆乳业、岁宝、宝姿、人和商业等公司,陆续陷入风波之中。在恐慌情绪影响下,上述公司正股股价泥沙俱下,3月至 今,跌幅最大的人和商业高达46.2%。

事实上,去年内地民企在香港市场也有过类似遭遇。彼时中国森林、瑞金矿业、群星纸业三只民企股,因财务不合规、营业收入存疑点等问题导致审计 师辞职,至今均未复牌。从历年的“洗盘”手法可以看出,市场偏好于抛售出现丑闻、业绩不佳和审计师辞任的公司。

浑水如何获利

过往两年的情况显示,浑水研究每每在揭露中资股财务或其他问题时,大都获利丰厚。浑水的基本操作模式是:质疑、调查,发现问题后做空,然后发 布负面报告,诱使大资金卖出相关公司的股票,待该股暴跌至低位后买入平仓,进而赚取丰厚利润。此外,负面报告可能引来监管部门的注意,企图使 投资人提起集体诉讼。

此次,浑水研究创办人,卡森·布洛克仍卖足关子,意图赚够公众眼球,并未向透露其出手目标公司。但可以肯定的是,一旦浑水研究再次成功狙击内 地民企股,获利仍会相当丰厚。

从香港市场看,做空内地民企股的资金已早有伏笔,从3月到现在,港股下跌,恒指期货只下跌了6.5%,而国企期货跌幅远超恒指,达到了 12%。华富嘉洛资深操盘手李扬指出,这是沽空中资股者所为,若中资股大面积下跌,做空资金可以通过沽空国企期货,或买入国企期货看跌期权获 利。

李扬还表示,做空中资股,最直接的做法是沽空正股,即借股票,先卖出,跌到低位买回来,把股票还给别人,赚取高卖低买的差价。其缺点是所需资 金量大,操作麻烦。简单易行的方法是买入中资股的衍生产品,一是买入中资股的认沽证或熊证,股价下跌,认沽证或熊证就涨。若是认为某个中资股 出问题,这是最快速沽空的手段。

此外,李扬还表示,衍生产品杠杆一般在十几倍,以小搏大,并且大资金可以参与,小资金同样可以参与,在一边倒的卖空形势下,衍生产品的买卖行 为会引起正股的剧烈波动。此外,对大资金来说,还有场外市场可以进行一对一,或一对多的“对赌”。

部分受波及的香港上市民企名单

公司 事件概称 3月至今股价跌幅 备注

岁宝 延发业绩,前行政总裁减持5千万股 -30% 已停牌

大庆乳业 审计师辞任 -17% 已停牌

博士蛙 审计师辞任,质疑部分帐目 -38% 已停牌

澳优 延迟刊发业绩 -20% 已停牌

国美 业绩发布后被多间大行唱淡 -32%

霸王集团 二恶烷事件后被抛售 -30%

人和商业 将地下商场项目转作投资物业,以重估方式入帐提升盈利 -46%

永晖焦煤 受质疑5亿美元优先票据资金去向,被质疑夸大库存及主要运输商疑为空壳公司 -24%

駱 家輝為何招天朝恨?

駱家輝從去年八月“自己背包”到北京,就任駐華大使未足一年,已成為中共最恨的人,關於駱大使的話題就未斷過,最近《人民日報》經濟周 刊主編田俊榮對駱家輝又發動一波攻擊。他在復旦大學演講時指斥駱家輝幹的是損公肥私的勾當,稱:“他為什麼會坐經濟艙?因為美國政府規定 大使的差旅費是包 干的,留下是自己的。”田主編呼籲大家要看清此人實質是在損公肥
天朝喉舌要愚弄百姓實在已經智窮。畢竟國人越來越難被“忽悠”了。美國政府連同商業公司都不存在差旅費包干之說。機票酒店都由公司或政府部 門訂購, 分文到不了個人之手。出遠差可預支部分款額,回來實報實銷,多退少補。不坐出租,自己駕車去機場,可以得到少量汽油和里程補貼。所謂“差旅費 包干”,以美 國財務制度連聽都未聽過!田主編是用自己的小肚雞腸度駱家輝之腹——或許這是盛世強國的“大肚雞腸”。
駱大使確令天朝官員惱怒。巴黎市長騎自行車上班,拿一美元工資的紐約市長坐地鐵上班,那是西 洋鏡景象,非我族類,不足為訓,大陸屁民耳聞即便訝嗟, 卻畢竟隔了重洋;馬英九吃便當盒飯,穿舊衣,住公寓樓,妻子周美青坐公交車上下班,這確係一景,卻又隔了海峽。獨是駱家輝生就華人面孔, 在天朝朗朗乾坤下 處處顛覆官場禮制,偏對中國老百姓頗具親和力和道德感召力,尤其是全民對天文數字的“三公支出”及官員貪腐、奢華、糜爛之習忍無可忍之 際。
天朝官媒對駱家輝發起連番攻擊,先有央視主持在論壇上質問大使,坐經濟艙是否“美國欠了中國的錢”;繼而《環球時報》指駱家輝“大大超過了 一個大使 本應扮演的輿論角色”,“以巧妙的方式干預中國輿論,增加中美之間新的誤解和懷疑”;《北京日報》數落,除了坐經濟艙是罪,連自己背包、住廉 價酒店、用折 扣券買咖啡都成了國際陰謀。
殊不知官方的攻擊更放大了駱家輝效應,其殺傷力愈加猛厲。亦佐證筆者先前撰文論及,既得利益 者對善惡美醜的判斷和民間涇渭分明,完全呈分裂對立狀。 如果說“顛覆和危害國家安全罪”,駱家輝是頭號重犯,怎奈有外交豁免權,無法像修理艾未未那樣整治他,更不能像李旺陽那般實行肉體消滅。 於是天朝對駱大使 恨意益深,難怪李肇星那位貴親戚暨香港某衛視的採訪總監力倡“驅逐”他。

官民認知對立,集中體現於這段網謠:“我說油費太貴,你說瑞典更貴;我說瑞典公路不收費,你說日本收費;我說日本工資高,你說俄國也不高; 我說俄國 有全民醫保,你說印度沒有醫保;我說印度沒強拆,你說伊拉克還挨炸;我說伊拉克有自由,你說朝鮮更無自由;我說朝鮮有公租房,你說阿富汗還住 山洞;我說阿 富汗人有選舉,你說選舉不能當飯吃;我說選票和吃飯一樣都是權利,你說再囉嗦我整死你!”
「中国经济保八20年」 林毅夫被批吹牛


中国知名经济学家、世界银行前副总裁兼首席 经济学家林毅夫,日前指中国在未来20年仍將保持8%的高速增长,遭中国经济学家砲轰为「放卫星」(说大 话)。

林毅夫对此不以为意,並表示对中国的经济有信心,中国维持高成长也是作为经济学家预测的结果。

《新京报》报导,北京大学日前为林毅夫举行一场「载誉归国 会」,林毅夫则以「我回来了!」作为开场白,贏得全场掌。 林毅夫6月初从世界银行卸任后回国,回归北大国家发展研究院,担任教授。

会上林毅夫被问到遭批「放卫星」一事时表示,不要用过去的眼光和理论来看问题。

林毅夫表示,自己在1992年提出的不少经济观点,当时都被称为「放卫星」,但现在已被事实证明为「行星」 (当时的预测已经成真)。

「放卫星」意指吹牛

报导指,林毅夫曾在2008年成功预测通货膨胀后的全球通货紧缩经歷,也成功预测全球金融危机时限,会远超 过西方经济学家预测三季度至七季度的经歷。

林毅夫对中国经济发展前景,十分乐观,他说,「不是因 为我盲目爱国,而是我作为经济学家分析的结果」。

林毅夫也以中美的经济发展作对比,认为照这个势头下去,到 2030年时,中国人均收入將能达到美国的50%;中国国內生產总值(GDP)將达到美国的2 倍,佔全世界的25%;世界500强企业,中国也將佔有100至150席。

在提到世界经济时,他则认为,西方经济正在经歷漫漫长 夜,天明尚不能见。

「放卫星」这个词来自1958年中国推动「大跃进」 时,急於求成的社会主义建设运动。当时,中国各地浮夸吹牛风气盛行,虚报夸大宣传粮食產量,这些在 各行各业中发生的虚假吹牛行为,被统一称为「放卫星」。现在则泛指不切实际、吹牛皮、说大话等行 为。

The  Worst Trading Losses Of All Time

financial failures


Everyone has been talking about JPMorgan's $2 billion trading loss in the bank's Chief Investment Office in London related to derivatives trades that was revealed last month.  
 
We've already seen the bank's chief executive officer Jamie Dimon appear on Capitol Hill twice to testify and a spate of federal regulators and agencies are said to be looking into the matter.

Multi-billion dollar trading losses aren't new to the Street.
Believe it or not, there are plenty of trading losses that surpass JPMorgan's recent blunder.
We've put together a countdown of the top 10 trading losses of all time, which JPMorgan is now a part of.

A German firm speculated on oil prices and lost $1.3 billion.

A German firm speculated on oil
                                prices and lost $1.3 billion.

Firm: Metallgesellschaft AG Year: 1993
Location: Germany
Amount lost: $1.3 billion
Source of the loss(es): Oil futures
Person(s) associated with loss: Heinz Schimmelbusch
The fallout:  Under the leadership of CEO Heinz Schimmelbusch, German metals and engineering giant Metallgellschaft was on the brink of bankruptcy after losing $1.3 billion on speculative bets.  The firm bet on an increase in oil prices in oil futures markets, but oil prices dropped instead.
The CEO was ousted after the loss.


Robert Citron lost $1.7 billion for Orange County, California forcing it into Chapter 9 bankruptcy.

Robert Citron lost
                              $1.7 billion for Orange County, California
                              forcing it into Chapter 9 bankruptcy.
Year: 1994 Location: Orange County, Calif. USA
Amount lost: $1.7 billion
The source of the loss(es): Leveraged bond investments
Person(s) associated with loss: Robert Citron
The fallout: In 1994, Citron was Treasurer-Tax Collector for Orange County, California. As treasurer, Citron used a series of highly-leveraged deals that included repurchase agreements and floating rate notes.

The funds he managed were worth around $8 billion, but he was counting on interest rates remaining low or else he stood to lose big time.  Interest rates did rise though, and as a result, Orange County losses amounted to $1.7 billion and was forced into Chapter 9 bankruptcy.

Last month, it was revealed that JPMorgan's 'London Whale' lost the firm $2 billion on derivatives trades.

Last month, it was
                              revealed that JPMorgan's 'London Whale'
                              lost the firm $2 billion on derivatives
                              trades.
Firm: JPMorgan  Location: United Kingdom
Year: 2012
Amount lost: $2 billion (some estimate that number could grow)
The source of the loss(es):  Credit default swaps
Person(s) associated with loss: Bruno Iksil
The fallout: On May 10th, JPMorgan disclosed a $2 billion dollar trading loss in the bank's Chief Investment Office in London related to derivatives trades. Bruno Iksil, a.k.a. "The London Whale," was identified in media reports before the loss was even revealed as the credit trader at the center of those trades.

JPMorgan's CEO Jamie Dimon has appeared before both the Senate Banking Committee and the House Financial Services Committee to testify about the loss revealed last month. 

The Securities and Exchange Commission, the Federal Reserve, the Commodity Futures Trading Commission, the Justice Department and the FBI are all said to be looking into the trading loss.   

A rogue trader lost UBS $2.3 billion on unauthorized trades in the bank's London office leading to the resignation of the CEO.

A rogue trader lost
                              UBS $2.3 billion on unauthorized trades in
                              the bank's London office leading to the
                              resignation of the CEO.
Firm: UBS Year: 2011
Location: United Kingdom
Amount lost: $2.3 billion
The source of the loss(es): ETFs/ Delta One
Person(s) associated with loss: Kweku Adoboli
The fallout: In September 2011, UBS revealed an unexpected $2.3 billion loss believed to be caused by a lone rogue trader in the bank's London office. Kweku Adoboli, 31, who worked on UBS's Delta One desk, was identified as the alleged rogue trader.

In February, he pleaded not guilty to four counts of fraud and false accounting.  He was released on bail earlier this month.

Shortly after the massive trading loss was discovered, the Swiss bank's CEO Oswald Grubel resigned from his post.

The UK's Financial Services Authority (FSA) and Switzerland's Financial Market Supervisory Authority (Finma) have both been investigating UBS' role in the trading loss.

In 2008, a Brazilian pulp maker lost $2.5 billion on currency bets.

In 2008, a Brazilian pulp maker
                                lost $2.5 billion on currency bets.

Firm: Aracruz Year: 2008
Location: Brazil
Amount lost: $2.5 billion
The source of the loss(es): Forex options
Person(s) associated with loss: Isac Zagury 
The fallout: At the time, Aracruz was the world's biggest producer of bleached eucalyptus-pulp.  In 2008, the firm lost big time on Forex trades when it bet that Brazil's real would appreciate in an effort to hedge against a weaker dollar.  The Brazil's ended up tanking.

The CFO Isac Zagury resigned soon after.
In 2009, Aracruz merged with VCP and was renamed Fibria.

In 1996, Sumitomo's chief trader attempted to corner the copper market and lost $2.6 billion. He went to prison.

In 1996, Sumitomo's chief trader
                                attempted to corner the copper market
                                and lost $2.6 billion. He went to
                                prison.

Firm: Sumitomo Corporation Year: 1996
Amount lost: $2.6 billion
The source of the loss(es): Copper futures
Person(s) associated with loss: Yasuo Hamanaka
The fallout: Yasuo Hamakana, who was once nick-named "Mr. Five Percent" and "Mr. Copper" because of his aggressive trading style in the copper market, caused Sumitomo to lose $2.6 billion from his unauthorized copper trades on the London Metal Exchange.
As a result of his rogue trade, Hamakana was sentenced to eight years in prison in 1998.  He was released in July 2005, a year before his sentence was supposed to end.

Long-Term Capital Management lost $4.6 billion in four months on bad bets on Russian bonds and had to be bailed out by a bunch of banks.

Long-Term Capital
                              Management lost $4.6 billion in four
                              months on bad bets on Russian bonds and
                              had to be bailed out by a bunch of banks.
Firm: Long-Term Capital Management Location: Greenwich, CT
Year: 1998
Amount lost: $4.6 billion
Source of the loss(es): Interest rate and equity derivatives
Person(s) associated with loss: John Meriwether
The fallout: In 1998, Long-Term Capital Management was levered up on Russian bonds. Unfortunately, Russia defaulted on those government bonds.  As a result, Meriwether's hedge fund lost $4.6 billion within four months.

The New York Fed brought together 14 Wall Street banks including Goldman Sachs, JPMorgan and Credit Suisse to bail out the hedge fund in order to keep it afloat and keep it from roiling the financial markets.

The fund closed in 2000.

Hedge fund Amaranth collapsed in 2006 after a trader's huge bets on the natural gas futures market went bad. The fund lost $6.6 billion.

Hedge fund Amaranth
                              collapsed in 2006 after a trader's huge
                              bets on the natural gas futures market
                              went bad. The fund lost $6.6 billion.
Firm: Amaranth Advisors Location: USA
Year: 2006
Nominal amount lost: $6.6 billion
The source of the loss(es): Natural gas futures
Person(s) associated with loss: Brian Hunter
The fallout: Brian Hunter, an ex-trader with the now-defunct Amaranth hedge fund, bet on natural gas futures back in 2006 that caused the fund to lose $6.6 billion.


Jerome Kerviel lost $7.2 billion for Societe Generale and he's facing prison time.

Jerome Kerviel lost
                              $7.2 billion for Societe Generale and he's
                              facing prison time.
Firm: Societe Generale Location: France
Year: 2008
Amount lost: $7.2 billion
The source of the loss(es): Equity derivatives
Person(s) associated with loss: Jerome Kerviel
The fallout: SocGen's "rogue trader" Kerviel lost the French bank approximately $7.2 billion through arbitrage of equity derivatives from unauthorized trades.
In October 2010, he was sentenced to three years in prison. He's planning to appeal.

In 2007, Morgan Stanley lost $9 billion on disastrous subprime mortgage bets, and heads were rolling.

In 2007, Morgan Stanley lost $9
                                billion on disastrous subprime mortgage
                                bets, and heads were rolling.

Firm: Morgan Stanley Location: USA
Year: 2007
Amount lost: $9 billion
Source of the loss(es): Credit default swaps
Person(s) associated with loss: Howard "Howie" Hubler
The fallout:  Hubler, now a former mortgage trader at Morgan Stanley featured in Michael Lewis' "The Big Short," lost the bank $9 billion on bets in the subprime housing market.

Even though he had insight into shorting subprime loans, he "offset it by gambling hugely on slightly better mortgages that turned out to be extraordinarily worthless," the New York Observer reported.

Hubler left the bank in October 2007.  What's more is those disastrous trades at Morgan Stanley also lead to the high-profile departure co-president Zoe Cruz.  Then-CEO John Mack offered to resign over the loss, but the board kept him on, sources told the Wall Street Journal.

The Looting of China by the Kleptokapitalist Bourgeoisie Roaders


As I set out in The Fall of the Communist Dynasty, and a HT to John Hempton’s piece within which he contends that the entire Chinese economy is a Kleptocracy , this week we have news from Citron Research who reports that  Evergrande Real Estate Group Ltd is ‘a deception on a grande scale’ .

Citron quote ;-

‘Evergrande who ranks among the top 5 Chinese property companies. Our analysis and primary research reveal that: 1] Evergrande is insolvent; and  2] Evergrande will be severely challenged from a liquidity perspective. The Company’s management has applied at least 6 accounting shenanigans to mask Evergrande’s insolvency. Our research indicates that a total write-­down of RMB 71bn is required and Evergrande’s pro forma equity is negative 36bn.’ 

What sparked Citrons interest in Evergande was the mail order doctorate the chairman claimed from the University of West Alabama, a small college 230 miles north of New Orleans with 2300 on-campus students. Evergrande’s is one of the top 5 players in the Chinese property market that fell for its 8th consecutive month in May. My experience with these types of matters is that small things can be excellent markers to greater problems. Small examples of dishonesty in one area of life are often reflected in larger undiscovered examples in other areas of a person’s life.

Meanwhile, Chinese Postal Bank, the country’s 7th largest bank in terms of assets, had its President led away by investigators. The remarkable  aspect of this story is that is that it is not remarkable ; billionaire senior party figures get taken away for questioning  on a weekly basis.

Elsewhere , Zoomlion the concrete and industrial machine giant is seeking Rmb140bn ($22bn) in fresh credit, fuelling fears the company is at the centre of a growing debt bubble. Zoomlion only has a market capitalization of $12.5B and is one of the most shorted stocks on the Hong Kong market with over 30% on loan at any one time to short-sellers.  This company certainly lives up to its name, we know we have a bubble when a company with a business model like this one can raise just less than twice as much as the Facebook who raised $12.B by selling 12.3% of the company.

Zoomlion has an interesting business model, it is similar in many  of ways to Caterpillar, except whereas Caterpillar report falling sales, Zoomlion reports astounding sales growth with a fivefold increase in revenue since 2007. Zoomlion customers sometimes buy ten concrete mixers when  they planned to initially by one or two. They have a perverse incentive to buy more than they need because these concrete trucks are purchased via finance packages supplied by Zoomlion.

Then the machines can be garaged and used as collateral to borrow further funds from other lenders. Zoomlion continues to grow while cement sales have plunged. In May, cement output increased 4.3 per cent YoY, down from 19.2 per cent recorded last year.  Zoomlion’s new debt of $22.5B buys roughly 900,000 trucks which could produce enough concrete (at six loads a day) to build over thirty Great Pyramids of Giza a day .

Every sector is infected with these kinds of perverse business practices, steel traders used loans meant for steel projects to speculate in property and stocks , it has been common (apparently) for steel traders to secure loans to buy steel then use this same steel as collateral to borrow funds to invest in property development and the stock market. In many ways this is the steel version of the Zoomlion model.  A fundamental foundation of any lending market is the ability of the lender to ensure title and guarantee ownership of collateral.

There is $400B in debt spread across the steel market, this debt simply can’t be serviced even with more stimulus, a fall in the price of steel could render much of the market segment insolvent.  The money is being funneled to mainland banks via Hong Kong then it leaves via Macau casinos.

There are dissenting opinions that China has a problem. Even though Chinese PMI is falling at a faster rate than at any time in the last 3 years . Michael Pascoe tells us it is  only the economically illiterate that would read this data unfavourably.

Despite Michael’s assurances that everything is super ok, a falling PMI is yet another signal of prices and orders falling right throughout the  Chinese economy . Pascoe is typical of the highhanded media economists who will chant CCP propaganda all the way over the edge. Pascoe leads cheerleaders against American exceptionalism, all the while embracing the Chinese variety with both arms and few questions.

One of the core elements of the Russian revolution was the Bolsheviks expropriating the capitalist assets using them to fund the revolution. In communist vernacular of the times, it was referred to as the “expropriation of the expropriators”.  This term originally belongs to Marx and provides an effective finale to the first volume of his Kapital:

The monopoly of capital becomes a fetter upon the mode of production which has flourished alongside and under it. The centralisation of the means of production and the socialization of labor reach a point at which they become incompatible with their capitalist integument. This integument is burst asunder. The knell of capitalist private property sounds. The expropriators are expropriated.
All revolutions have class and economic matters at their core. Ironically, the difference in a future  Chinese collapse is that the  expropriators in China in this cycle have been the Communist Party political class. The CCP have become the Kleptopreneur  bourgeoisie who have expropriated from China’s proletariat (the industrial working class), via corruption and theft from the state and state owned enterprises. The Ka-Ching Dynasty is responsible for the greatest looting of a nation in history.
Marx wrote that modern bourgeois society (Capitalism) has conjured up such gigantic means of production and of exchange, that it is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up by his spells (Karl Marx)

The CCP ‘sorcerers’ have summoned up a political and economic nether world that is so systemically corrupted it is in the process of spiralling into same revolutionary physics that destroyed the original Chinese merchant bourgeoisie that Mao overthrew.

The Chinese government has set saving rates at excessively low levels. Overtime this takes savings from depositors and transfers wealth to borrowers. In China this wealth is then mal-invested in projects that have limited real economic value, in the process transferring large amounts of worker savings to the kleptopreneur class , who then often take the capital out of the country.

The entire Chinese economy has been captured by looters who conceal their crimes behind fraudulent reporting.  Like their corporate brethren,they rely on fraud to continue the Communist Ponzi System.  Chinese fraudulent economic data is hiding the scale of the slowdown and this is becoming evident right across the economy. In an astounding example of Chinese productivity,  the economy is managing to grow GDP by 7-8% per annum but only using slightly more oil, coal or cement than in the same period last year. Oil consumption as reported in May only grew by 0.5% year on year at the same time as coal in Qinhuangdao is hitting record stock piles of  9.5 million tons, which is 0.2 million tons over the previous 2008 record. Also,  thermal coal stockpiles at utilities is up over 60% from a year ago

The current political leadership of China represents the greatest looting of a country by the political class ever seen in history. In the Hurun Report released in March 2012—the richest 70 members of the government have a net worth of $89.8 billion, an average of over $1B each. This compares to $7.5 billion for the 660 for the US government, an average of  $11M each. China’s Billionaire People’s Congress Makes Capitol Hill Look Like Paupers. In a country so indoctrinated in the works of Marx, it seems only a matter of time before the current Chinese proletariat, suffering under extreme wealth distribution, will rise up. One only has to look at the geographic distribution of wealth to see where the problems might begin.

Furthermore, this does not take into account the wealth held by the families of these politicians. Nor is this corruption limited to politicians. The military, according to John Garnaut’s report, has become one of the most corrupt state enterprises of all.  China’s wealth distribution is becoming completely one sided  The success of 300m Chinese who live in western level prosperity depends on the continued exploitation and good nature of one billion people who live on an average of $5000 per annum. This week Chinese military leaders have been ordered to report assets under the following CCP directive – The General Political Department, Discipline Inspection Commission: Leaders Must Report Income, Real Estate Holdings and Investments. This is likely to be met with extraordinary resistance. This could result in a standoff between the CCP and the PLA , where both bodies equally riddled with corruption struggle for the upper hand. The great
The corruption was genetically imprinted on the system from the early 1990s. Cadres (party officials) and entrepreneurs, combined to take previously state owned enterprises during an increasingly relaxed Chinese hybrid economy encouraged by Deng Xiaoping. Cadres were intentionally encouraged to leave the CCP and set up businesses, many deciding to keep both roles, becoming what was known as Cadre-entrepreneurs.

There were sound reasons for this , letting party cadres to set up businesses was the only way of opening up the government controlled system. Whereas a non-cadre entrepreneur might not be able to navigate the complexity of government support and approval, a CCP cadre had, in the early days, all the understanding and influence to move an opportunity forward.  This paper expands  further on the on the nature of the early corruption –  Institutionalized Corruption and Privilege in China’s Socialist Market Economy: A General Equilibrium Analysis Ke Li, Russell Smyth, and Yao Shuntian.
Capital flight has started; 60 per cent of about 960,000 Chinese people with assets of over Rmb10m ($1.6m) have already begun the process of emigrating or are considering doing so.  Are the Chinese top 1% losing confidence and taking their money out? In the article “High Wealth Concentration, Porous Exchange Control, and Shocks to Relative Return: the Fragile State of China’s Foreign Exchange Reserve“,  Victor Shih underlines how fragile China is to a loss of confidence by Chinas business elite.
If this business elite is predominately made up of Kleptopreneurs and Cadrepreneurs   , then capital flight might be bought on by a flight to safety by the political class fearing a purge rather than coming about as loss of confidence in China.

The greatest assumption that the world makes is that the CCP can control and avoid  this by implementing more stimulus. When this assumption ultimately proves to be false then Marx’s nether world will rise up

As Marx observed of the collapse of the Roman Empire
Originally, they were free peasants tilling, every man for himself, their own piece of land. In the course of Roman history, they were expropriated. The same movement which separated them from their means of production and of subsistence, implied not only the formation of large landed properties but also the formation of large monetary capitals. Thus, one fine day, there were on the one hand free men stripped of everything save their labor power, and on the other, for exploiting this labor, the holders of all acquired wealth. What happened? The Roman proletarian became not a wage-earning worker, but an indolent mob

Never in history has a government at this scale , been so completely captured by a political class intent on enriching itself, serving not the best interests of the people but their own ends. When and in what form the indolent mob rises up is hard to say. The reality, though, is that the Chinese political class is losing control. Guanxi the essential system of trust that holds the Chinese system together is breaking down, as is the Leninist vanguard system of controlling state affairs through the CCP.  A system of mutual trust and a central party vanguard is impossible to maintain in a Kleptocracy.

Some Of The Most Hilarious Names Of Large Corporations


Over the years, we've made a mental list of funny corporate names that we've seen on press releases or in articles or in wire headlines. So finally we just decided to list them all.
Some of these companies have rather unfortunate names, especially when not translated into English.
Others had founders who decided to go ahead and name their company after themselves -- perhaps some of these words and phrases were not as humorous in the 1800s as they are today.
Others now go mainly by acronyms.
Interestingly, three of them manufacture concrete pumps.

Analtech

Analtech

Where it's located: Newark, Delaware What it does: Manufacturer of thin layer chromatography plates.
How it got its name: Portmanteau of the words "analytical" and "technology."
About: Analtech distributes its products to more than 40 countries and 6 continents.

McJunkin

McJunkin

Where it's located: Charleston, West Virginia What it does: Manufacturer of pipes and valves.
How it got its name: Jerry McJunkin was the original co-founder of McJunkin Supply Company in 1921.
About: McJunkin Red Man employees around 3450 people and and is #493 on the Fortune 500.

Couche-Tard

Couche-Tard

Where it's located: Quebec, Canada What it does: Chain of convenience stores
How it got its name: "Couche tard" is French for "night owl."
About: Couche-Tard operates nearly 2000 locations throughout Canada and parts of Europe.

Ass Compact

Ass Compact

Where it's located: Germany What it does: Specialist magazine for Capital and Risk Management
How it got its name: This one is anyone's guess.

Wong, Doody, Crandall, Wiener

Wong, Doody, Crandall, Wiener

Where it's located: Seattle, Washington and Los Angeles, California What it does: Marketing and advertising agency.
How it got its name: Wong, Doody, Crandall, and Wiener are the senior partners.
About: Wong Doody employs 147 people in its west coast offices and is also featured on AMC's "The Pitch."

Hooker Furniture

Hooker Furniture

Where it's located: Martinsville, Virginia What it does: Sells home and office furniture.
How it got its name: Clyde Hooker founded the company in 1924.
About: Hooker furniture employs around 800 people and imports furnishings from throughout the Pacific Rim, Mexico and Central America.


Butamax

Butamax

Where it's located: Wilmington, Delaware What it does: Develops biobutanol – an advanced premium biofuel molecule.
How it got its name: We assume it took its name from its main product and spiced it up a bit.
About: Butamax is a joint venture between BP and DuPont.


Cockram

Cockram

Where it's located: Melbourne, Australia What it does: Construction management.
How it got its name: Thomas Cockram founded the company in 1861.
About: One of Australia's longest running construction companies, employs around 400 people and around 3000 subcontractors, and operates in Australia, Asia, and the Americas.


Putzmeister Group

Putzmeister Group

Where it's located: Aichtal, Germany What it does: Manufacturer of concrete pumps.
How it got its name: "Putzmeister" is German for "plaster master."
About: Putzmeister employs more than 3,200 people and generates over $1.1bn in consolidated annual sales.


PEDO (diapers)

PEDO (diapers)

Where it's located: Turkey What it does: Manufacturer of baby diapers.
How it got its name: PEDO appears to be an acronym for something.
About: Not much information about this company is readily available from its translated web page.

Schwing America

Schwing America

Where it's located: St. Paul, Minnesota What it does: Manufacturer of concrete pumps.
How it got its name: The company was founded by Friedrich Wilhelm Schwing (before Wayne's World was made).
About: Schwing was originally a German company before expanding its operations to the United States.


Siemens

Siemens


Where it's located: Munich, Germany What it does: Conglomerate manufacturer of engineering and industrial equipment.
How it got its name: The company was founded by Werner Von Siemens in 1847.
About: Siemens employs around 360,000 people and generates over $70bn in annual sales.

Saturday, June 23, 2012

Turkey Provides An Opening To America To Attack Syria ?

Turkish F-4
      Phantom jet (file)On Saturday, Turkish President Gul said the Turkish government could not ignore the fact that Syria had shot down a Turkish aircraft. He said after holding an emergency briefing with his intelligence and military chiefs. Turkey threatened to take "decisive" action last night after Syria shot down one of its fighter jets, sparking fears that Nato could be drawn into a major confrontation with the Assad regime.

The Turkish military said it lost radio contact with the F-4 Phantom at 11:58 (08:58 GMT) on Friday while it was flying over Hatay province, about 90 minutes after it took off from Erhac airbase in the province of Malatya, to the north-west.

Later, the Syrian military said an "unidentified air target" had penetrated Syrian airspace from the west at 11:40 local time (08:40 GMT), travelling at very low altitude and at high speed.

It said that in line with the laws prevailing in such cases, Syrian air defences engaged the craft, and scored a direct hit about 1km (0.6 miles) from its coastline. It burst into flames, and crashed into the sea at a point 10km (6 miles) from the village of Om al-Tuyour, off the coast of Latakia province, well within Syrian territorial waters, the statement added.



US military intervention in Syria – “Not if but when”


As the violence in Syria continued to go from bad to worse in scope and intensity, US official sources had this to say Saturday, June 16,  about planned US military operations in the war-torn country:
“The intervention will happen. It is not a question of ‘if’ but ‘when.’”
A Syrian Free Army rebel delegation is now in Washington to talk about their requests for heavy weapons from the Obama administration. In their meetings with US Ambassador to Syria Robert Ford and the State Department’s expert on Syria Fred Hof, the rebel leaders handed in two lists for approval: types of heavy weapons capable of challenging Bashar Assad’s armed forces and selected targets of attack to destabilize his regime.
Our Washington sources disclose that the administration is very near a decision on the types of weapons to be shipped to the Syrian rebels and when. Most of the items Washington is ready to send have been purchased by Saudi Arabia and Qatar and are ready for shipment.
The White House is also close to deciding on the format of its military operation in Syria. Some sources are defining it as “Libya lite” – that is, a reduced-scale version of the no-fly zone imposed on Libya two years ago and the direct air and other strikes which toppled the Qaddafi regime.
Following reports of approaching US military intervention in Syria and a Russian marine contingent heading for Tartus port, the UN observer mission in Syria has suspended operations and patrols. Its commander Maj. Gen. Robert Mood said, “Violence has been intensifying over the past 10 days by both parties with losses and significant risks to our observers.”
He said the risk is approaching an unacceptable level and could prompt the 300 observers to pull out of the country.

Friday, June 15:
A contingent of Russian special forces is on its way to Syria to guard the Russian navy’s deep-water port at the Syria’s Mediterranean coastal town of Tartus, Pentagon officials informed US NBC TV Friday, June 15. They are coming by ship. According to our sources, the contingent is made up of naval marines and is due to land in Syria in the coming hours.
In a separate and earlier announcement, US Defense Department sources in Washington reported that the US military had completed its own planning for a variety of US operations against Syria, or for assisting neighboring countries in the event action was ordered – a reference, according to our sources, to Turkey, Jordan and Israel.
The Syrian civil war is now moving into a new phase of major power military intervention, say our military sources. Moscow, by sending troops to Syria without UN Security Council approval, has set a precedent for the United States, the European Union and Arab governments to follow. They all held back from sending troops to Syria because all motions to apply force for halting the bloodshed in Syria were blocked in the UN body by Russia and China.
According to US military sources, in recent weeks, the Pentagon has finalized its assessment of what types of units would be needed and how many troops. The military planning includes a scenario for a no-fly zone as well as protecting chemical and biological sites. The U.S. Navy is maintaining a presence of three surface combatants and a submarine in the eastern Mediterranean to conduct electronic surveillance and reconnaissance on the Syrian regime, a senior Pentagon official said.