Reuters blog archive
By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Old meat in China’s fast-food chain brings a health warning for foreign companies doing business in the country. After getting fat on rapid growth, some are discovering nasties hidden within their ample folds.
from The Great Debate:
The eruption of anti-immigrant fury over the federal government’s plans to temporarily relocate undocumented Latino children to shelters and Border Patrol facilities in Murietta, California, and other cities, is largely founded on the expressed belief that immigrants bring drugs and crime, threatening the safety of communities.
Yet as figures from the Murietta Police Department show, Latinos commit fewer crimes, especially drug offenses, compared to whites in their respective proportions of the city’s population. Racially diverse areas with rapidly growing, younger immigrant populations are also becoming dramatically safer from gun violence, according to surprising new figures from the Centers for Disease Control.
from James Saft:
By James Saft
(Reuters) - New money market fund reforms are half measures which will fail to end investors’ illusion that there is such a thing as a safe asset.
The Securities and Exchange Commission on Wednesday adopted new rules aimed at forestalling runs on money market funds, notably one which will force 'prime' institutional funds to allow their value to float. The new rules also allow all money market funds finding themselves short of liquid assets in stressed markets to impose temporary impediments to redemptions or charge fees of up to 2 percent. Both sets of rules take effect in two years' time.
The Herbalife saga continues. Yesterday, Bill Ackman made what he claimed would be the most important presentation of his career: a three-and-a-half-hour slideshow detailing how the company’s nutrition clubs prove it is a pyramid scheme. If you put “three-and-a-half hours” and “power point” together and guessed that many felt Ackman’s event failed to live up to the hype, you would be correct. David Gaffen spent most of the time during the presentation tracking the steady rise in Herbalife’s share price. At one point yesterday it was up 25 percent over where it had opened.
Herbalife’s statement on the presentation seized on this: "Once again, Bill Ackman has over-promised and under-delivered on his $1 billion bet against our company.” John Hempton at Bronte Capital (long a supporter on the Herbalife side) didn’t find Ackman that convincing. He says he too has done a lot of research on the company and its nutrition companies. “This is not a pyramid. There are plenty of real sales to real people ... Its a lousy business but it is a business in which people have integrated their lives and their families,” he writes.
from Data Dive:
These are good times for Facebook. The social media site reported second quarter earnings of $0.42 per share and revenue of $2.91 billion on Wednesday afternoon. Analysts polled by Thomson Reuters expected $0.32 in earnings per share and revenue of $2.8 billion. The company's stock is up just under 1% in after hours trading. Reuters' Stephen Culp charts Facebook's share price relative to the S&P 500 and five of its competitors. The comparison is striking and decidedly in Facebook's favor.
It was only back in April that tech stocks, Facebook included, were falling and people were scrambling to explain why. In the intervening months, Facebook has not been alone in reversing that decline. While its more niche competitors like those charted above have performed poorly on an absolute and relative basis, year-to-date, a host of bigger tech companies' stocks beaten the S&P 500's 7.3% return: Google (up 8.9%); Apple (up 20.2%); Microsoft (up 20.8%). The NASDAQ itself is up 22.7%.
from Financial Regulatory Forum:
By Stuart Gittleman, Compliance Complete
NEW YORK, July 23, 2014 (Thomson Reuters Accelus) - The New York State Department of Financial Services (DFS) is seeking public comment on a proposed "BitLicense" regulatory framework for New York virtual currency businesses, DFS Superintendent Benjamin M. Lawsky said Thursday.
The proposed framework – the first on a state-wide basis in the country – will require licensees to have strong compliance and supervisory policies and procedures.
from James Saft:
July 23 (Reuters) - New money market fund reforms are half
measures which will fail to end investors' illusion that there
is such a thing as a safe asset.
The Securities and Exchange Commission on Wednesday adopted
new rules aimed at forestalling runs on money market funds,
notably one which will force 'prime' institutional funds to
allow their value to float. The new rules also allow all money
market funds finding themselves short of liquid assets in
stressed markets to impose temporary impediments to redemptions
or charge fees of up to 2 percent. Both sets of rules take
effect in two years' time.
from Mark Jones:
$18 billion in job training = lots of trained unemployed people http://t.co/oFP9mSniwp