Tuesday, October 15, 2013

Citigroup results hit by bond trading slowdown


By David Henry


(Reuters) - Citigroup Inc posted weaker-than-expected third-quarter earnings on Tuesday, hit by a drop in bond trading revenue after the Federal Reserve refrained from changing its bond buying program and customer activity fell.


The Fed's decision took investors by surprise and led many to take a wait-and-see attitude until there is a clearer time frame for the end of the central bank's economic stimulus program.


The third quarter is typically a slow one for bond trading, and this was exacerbated by the Fed announcement, according to analysts. Citigroup's bond trading revenue dropped 26 percent, or $956 million, excluding an accounting adjustment.


In last year's third quarter Citigroup took a pretax charge of $4.7 billion related to selling its Smith Barney brokerage business, a charge that ended up costing Vikram Pandit, then the bank's chief executive, his job.


Pandit's successor, Michael Corbat, has struggled to improve the fortunes of the third-largest U.S. bank in an environment where client business is tepid and new regulations are raising banks' expenses.


On some fronts, Corbat is making progress. Citigroup has winnowed down the assets it is looking to shed, known as Citi Holdings, to $122 billion, down 29 percent from a year earlier and down 7 percent from the second quarter. Citi Holdings now accounts for a little more than 6 percent of the bank's overall assets, compared with about 9 percent in last year's third quarter.


But results were weak at many businesses at Citicorp, the bank's main operations. Revenue for its retail banking business fell 7 percent to $9.24 billion, and revenue for its securities and banking business fell 2 percent to $4.75 billion.


Under generally accepted accounting principles, net income rose to $3.23 billion, or $1.00 per share, from $468 million, or 15 cents per share, a year earlier.


Excluding the Smith Barney charge, as well as the impact of tax benefits and changes in the value of Citigroup debts and those of trading partners, third-quarter earnings slipped to $3.26 billion, or $1.02 per share, from $3.27 billion, or $1.06 per share a year earlier. On that basis, revenue fell 5 percent to $18.22 billion.


Analysts on average expected earnings of $1.04 a share, according to Thomson Reuters I/B/E/S. A spokeswoman for the bank said the average estimate was comparable to the adjusted earnings of $1.02 per share.


Citigroup shares were down 55 cents to $49.05 in morning trading.


(Reporting by David Henry in New York; Additional reporting by Tanya Agrawal in Bangalore; Editing by John Wallace)



Source: http://news.yahoo.com/citigroup-adjusted-profit-hit-bond-trading-slowdown-115441235--sector.html
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Oscars: Michael Fassbender Says He Won't Campaign Again


Two years ago, Michael Fassbender spent months campaigning for an Oscar nomination he wouldn't receive for his role as a sex addict in Steve McQueen's Shame. Even though he has an Oscar-friendly role this year as an evil plantation owner in McQueen's 12 Years a Slave, he won't be hitting the campaign trail again, the actor tells GQ.



"You know, I get it. Everybody's got to do their job. So you try and help and facilitate as best you can. But I won't put myself through that kind of situation again," he tells the magazine in its November cover story. "It's just a grind. And I'm not a politician. I'm an actor."


PHOTOS: Outtakes From Michael Fassbender's THR Cover Shoot


He has a convenient excuse for his absence on the campaign trail, explaining that he'll be on set, first filming his production company's first feature in New Zealand and then shooting Macbeth with Marion Cotillard.


"I'm going to be busy working," Fassbender tells GQ. "I just don't really have time."


Fassbender's remarks aren't quite as extreme as those made to Interview magazine last year by Joaquin Phoenix, another potential nominee this year for his work in Her.


STORY: '12 Years a Slave' Cast Talks Tapping Into Brutal True Story


Phoenix said the awards circuit is "total, utter bullshit, and I don't want to be a part of it."


"I don't believe in it," he added. "It's a carrot, but it's the worst-tasting carrot I've ever tasted in my whole life. I don't want this carrot. It's totally subjective. Pitting people against each other ... it's the stupidest thing in the whole world."


Phoenix also had a bad experience campaigning for an award, for his 2005 portrayal of Johnny Cash in Walk the Line. Although he earned an Oscar nomination and won a Golden Globe for best actor, he didn't take home the Oscar.


Despite his complaining last year, Phoenix still received a best actor Oscar nomination for his work in The Master.


12 Years a Slave hits theaters in the U.S. on Friday.


Source: http://feedproxy.google.com/~r/thr/news/~3/jRRIcnwPJ8k/oscars-michael-fassbender-says-he-648405
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Tokyoflash turns hexagonal fan concept watch into $109 reality (video)


Tokyoflash's Kisai Quasar concept watch becomes hexagonal reality


Remember that time you submitted a script to Babylon 5 and it was accepted for a show? Yeah, didn't happen to us either, but apparently Tokyoflash has a much more open mind with its fans. It just launched the Kisai Quasar, a hexagonal-themed watch that was originally submitted by Tokyoflash buff László Scheffer. The geometry is echoed in the watch face to create yet another signature Kisai design with a nerd-only time display. Thankfully there's also a simplified mode that shows, well, numbers. You can grab it in silver or black (with a blue, red, green or mirrored display) for the next two days at $109, after which it'll run $149 -- just watch where you point the thing.



Source: http://www.engadget.com/2013/10/14/tokyoflash-kisai-quasar/?ncid=rss_truncated
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Markets steady as debt ceiling deadline looms

LONDON (AP) — Three days from a deadline to increase the U.S. debt ceiling, investors remain focused on developments in Washington. Most think a deal will be reached in time and stock markets were holding up Monday.


The U.S. has to increase the amount of debt it can carry by Oct. 17 or face a possible default on its debt, a scenario that could derail the U.S. economic recovery and roil international markets.


Negotiations between Republicans and Democrats over the weekend failed to reach a conclusion either on the raising of the debt ceiling or the partial shutdown of the U.S. government, which has now entered a third week.


Despite the possible nightmare scenario of a U.S. debt default, markets have proven more resilient than many analysts had expected.


"Like the fiscal cliff in 2012 and the last debt ceiling scare in 2011, the view remains that it will all work out, eventually," said Michael Ingram, market strategist at BGC Partners. "They are probably right of course, but it still feels that equity markets have been approaching this issue with unusual complacency."


In Europe, Germany's DAX closed flat at 8,723.81 while the CAC-40 in France rose 0.1 percent to 4,222.96. The FTSE 100 index of leading British shares ended 0.3 percent higher at 6,507.65.


In the U.S., the Dow Jones industrial average was down 0.2 percent at 15,211 while the broader S&P 500 index fell the same rate to 1,700.


Despite the public holiday, developments in Washington remain the focus of attention in financial markets, with Senate leaders from both sides set for further discussions. Democratic Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell spoke by phone Sunday but failed to agree on a deal to raise the nation's borrowing authority above the $16.7 trillion debt limit.


Earlier, trading in Asia was muted, with markets in Tokyo and Hong Kong closed for holidays.


Outside of those major financial centers, China's Shanghai Composite Index rose 0.4 percent to 2,237.77 while South Korea's Kospi was off 0.2 percent at 2,020.27. Australia's S&P/ASX 200 shed 0.4 percent to 5,207.90.


Trading was also subdued in other financial markets. In currencies, the euro was up 0.2 percent at $1.3577 while the dollar was steady at 98.24 yen. In the oil markets, a price of benchmark New York crude was down 21 cents at $101.81 a barrel.


Source: http://news.yahoo.com/markets-steady-debt-ceiling-deadline-looms-162528402--finance.html
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Monday, October 14, 2013

David Dinkins: Leading New York Is The 'Greatest Job There Is'



David Dinkins served as New York City's first African-American mayor. But his rise through the political ranks came with hard-learned lessons. Host Michel Martin speaks with former Mayor Dinkins about his book, A Mayor's Life: Governing New York's Gorgeous Mosaic. This segment initially aired September 2, 2013 on Tell Me More.



Copyright © 2013 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.


MICHEL MARTIN, HOST:


I'm Michel Martin and this is TELL ME MORE from NPR News. It is Columbus Day. For some, a holiday. For others, a day to celebrate Italian-American heritage. Officially, it's the day the nation acknowledges Christopher Columbus as the first European whose arrival in the Americas was recorded. So later, we'll talk about something that was originally written to honor Christopher Columbus. That something is the Pledge of Allegiance. And we'll talk about other facts you might not know about the pledge. And we'll ask if it still means something to the millions of American students who recite it every school day.


But we want to start our program today with another first. David Dinkins made history as the first black mayor of New York City. He won the office in 1989 during a tumultuous time. Race relations were fractured, the economy was struggling and many neighborhoods were in the grip of a crack epidemic. He talks about all of this in his new book "A Mayor's Life: Governing New York's Gorgeous Mosaic." And we spoke with Mayor Dinkins recently, and I started our conversation by asking why he waited more than 20 years after he left office to write the book.


DAVID DINKINS: Well, others have written of me and I thought it was high time that I told it my way.


MARTIN: You say in the book that you were actually reluctant at first to run - I mean, you loved being Manhattan borough president. You had ran three times for the job before you got it. You actually loved the job. So why did you finally decide?


DINKINS: Well, I always try to be careful for this not to sound like I was drafted, because that's not quite the case. But some friends of mine - political folk and others - insisted that I should run. We had supported Ed Koch - by we I mean Percy Ellis Sutton, one of my mentors, a great man. And he and others of us supported Ed Koch in a runoff in 1977 against Mario Cuomo, and Koch succeeded. He was a very liberal progressive mayor in those days. But Ed seemed to move to the right. So by the time it got to be his third term, he was not very popular and we were displeased. And so I ran and we won.


MARTIN: A lot of people remember Ed Koch as being this kind of avuncular figure. You know, his famous catch phrase - how am I doing. But he was also a very polarizing figure. And many people believe that he'd kind of gotten to a place of being particularly abrasive and confrontational with minorities. So that was, you know, part of the story. When you won the mayor's race in 1989, you thanked your supporters - and paraphrasing here - you thanked them for voting their hopes and not their fears. How long do you think that that lasted?


DINKINS: Well, it lasted, I suppose, as long as one could hope, initially. But we did have problems. I suppose foremost among them was Crown Heights. It's a community that contains many Orthodox Jews and some Caribbean blacks. And there had been difficult times. And it came, an occasion, when the traditional motorcade to the Rebbe's burial site - the last car in that motorcade fell behind. And in an attempt to catch up, he lost control and hopped a curb and struck two little black children. Gavin Cato was killed, his cousin severely injured. And following that, rumors spread that the ambulances had come and taken away the white driver and left the black children to die.


Now that was not true, but that's the word that spread. And as a result of that, a divinity student from Australia named Yankel Rosenbaum was stabbed and later died. So anyway, that resulted in a little mini riot, as it were. And the New York City police, who are the best in the world at controlling riot situations, did not do a sufficiently good job on that occasion. And it wasn't until after a couple of days that I said, whatever the hell you're doing, it ain't working. And I insisted that they do better and that they were able to quell things. But in the meantime, it was said by some that I, or others in our administration, had given orders for the police to not stop the blacks from attacking Jews. That just wasn't true. It's a lie. It never happened that way. But we had to suffer - and it was particularly harmful to me because I considered myself a friend of the Jewish community and the state of Israel. I can cite many instances where I had shown that concern prior to this occasion before I took office.


MARTIN: And all that goodwill evaporated with this.


DINKINS: Didn't mean a thing.


MARTIN: You write about that quite a bit in the book. You write about Crown Heights extensively. But it's interesting. You point out three things that people tease you about - one is you are very careful about your grammar. As you say, you love the King's English, you love tennis and you don't mind dressing up.


DINKINS: No.


(LAUGHTER)


MARTIN: Do you think that the reason these particular interests of yours - preferences - particularly for, you know, careful diction, perfect grammar and so forth - is it because you're African-American, you think people just don't believe that you should carry yourself in that way?


DINKINS: Well, no. It's really because of Alice Jackson Houston, who taught freshman English at Howard University. And she wouldn't tolerate grammatical errors. And she was insistent that we speak correctly. And I learned from her. As a matter of fact, a few years ago - I teach at Columbia University - I had one of my students Google her. I said, I wonder how she is or where she is. And it developed that she had died in 2001 or 2002, but she had a son who is a judge in the Washington, D.C. area.


And I got him on the phone and these were not his words, but it was sort of like - well, why are you calling me? And I said, I just - I just want you to know what your mother did for me. And in every office that I have had where we had speechwriters and whatnot, I could envision little three-by-five cards that would say, don't you dare ever say between he and I, or other such - but we learned that from Alice Jackson Houston.


MARTIN: If you're just joining us, I'm speaking with the former mayor of New York City, David Dinkins. He's just written a new memoir. It's called "A Mayor's Life." With the benefit of hindsight, is there anything you would have done differently as mayor?


DINKINS: Oh, absolutely. I'm sure that - as we say - God's not finished with me yet. So I'm by no means perfect, and I'm confident that we made many mistakes. Certainly, I would have insisted sooner in Crown Heights that the police did a better job. I would not have tolerated that as long as I did. We once had a Korean boycott situation, and I was criticized there for not walking across the picket line and destroying the effort that some blacks had to ill-treat this Korean merchant. I finally did, but I wish I had done it sooner.


MARTIN: Why do you think you didn't?


DINKINS: Because I had faith in our staff that had a similar problem that they solved in a matter of a couple of days. But there were those who didn't want that particular one solved. And so they did all they could to defeat us.


MARTIN: That is kind of the through line of the criticism of your administration, by those who criticize it, that they say that you're a very well-meaning man. You certainly care about the city, you certainly love the city. But the through line for your critics is that you just took too long to respond to these kinds of toxic situations. What's your take on that?


DINKINS: Well, I would say that in some instances, they're probably right, but in a whole lot of other instances, they're wrong. And some of those same people never seemed to notice how crime decreased on our watch, how homelessness, which today in 2013, we have more homeless in New York than we have ever had since we started keeping records, but it decreased during our time. So I'm confident that when people look back - I won't say a hundred years from today, but maybe 20, 30 years - they might say, oh, gee, you know, those guys did a pretty good job.


I like New York. I think it's - with all due respect to those of you who live elsewhere - I think it's the greatest town in the world. And being mayor of New York is the greatest job there is, save the one that President Obama has.


MARTIN: Is there any wisdom that you would want to pass on to people listening to our conversation who, perhaps, aspire to the kind of career that you had, particularly African-American politicians or public figures who are following in your footsteps or would like to?


DINKINS: Well, I'll tell you what I say to young people who come to me seeking advice about - they'll say such things as, I want to get into politics, what should I do? Where do I start? And I'll tell them all that if - you need to be appropriately motivated. If you want to be mayor or some other high office because you want to see your name in lights, that's an improper motivation. If you want to be mayor or whatever because you want to serve people and make the lives of others better, then you will succeed if it's in you.


MARTIN: David Dinkins is the former mayor of New York City. His new book is "A Mayor's Life: Governing New York's Gorgeous Mosaic." And he joined us here in our Washington, D.C. studios. Mr. Mayor, thank you for speaking with us.


DINKINS: Thank you.


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Source: http://www.npr.org/2013/10/14/232164807/david-dinkins-leading-new-york-is-the-greatest-job-there-is?ft=1&f=1032
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Thursday, October 10, 2013

U.S. withholds military, economic aid for Egypt


By Patricia Zengerle and Arshad Mohammed


WASHINGTON (Reuters) - The United States said on Wednesday it would withhold deliveries of tanks, fighter aircraft, helicopters and missiles as well as $260 million in cash assistance from Egypt's military-backed government pending progress on democracy and human rights.


The decision, described by U.S. officials, demonstrates U.S. unhappiness with Egypt's path since its army on July 3 ousted Mohamed Mursi, who emerged from the Muslim Brotherhood to become Egypt's first democratically elected leader last year.


But the State Department said it would not cut off all aid and would continue military support for counterterrorism, counter-proliferation and security in the Sinai Peninsula, which borders U.S. ally Israel.


It also said it would continue to provide funding that benefits the Egyptian people in such areas as education, health and the development of the private sector.


The split decision illustrates the U.S. dilemma in Egypt: a desire to be seen promoting democracy along with a need to keep up cooperation with a nation of strategic importance because of its control of the Suez Canal, its 1979 peace treaty with Israel and its status as the most populous nation in the Arab world.


"We will ... continue to hold the delivery of certain large-scale military systems and cash assistance to the government pending credible progress toward an inclusive, democratically elected civilian government through free and fair elections," State Department spokeswoman Jen Psaki said in a statement.


Mursi's supporters and security forces have repeatedly clashed since the Islamist president's ouster, including on Sunday, one of the bloodiest days since the military took power, with state media reporting 57 people dead.


UNCLEAR WHAT EFFECT U.S. DECISIONS WILL HAVE ON EGYPT


Jon Alterman, director of the Middle East program at the Center for Strategic and International Studies think tank in Washington, said it was doubtful Washington would gain any leverage over Cairo by withholding the aid.


"It may make some Americans feel better about the U.S. role in the world, but it's hard to imagine how it changes how the Egyptian government behaves," he said.


On September 24, President Barack Obama said Washington would continue to work with the interim authorities in Cairo, but faulted them for anti-democratic moves such an emergency law and restrictions on opposition parties, the media and civil society.


Speaking to reporters in a conference call, U.S. officials said the United States would withhold deliveries of M1A1 Abrams tank kits made by General Dynamics Corp, F-16 aircraft produced by Lockheed Martin Corp, and Apache helicopters and Harpoon missiles built by Boeing Co.


But they stressed the withholding of such big-ticket military items was not meant to be permanent and would be reviewed periodically along with Egypt's progress on human rights and democracy.


U.S. Defense Secretary Chuck Hagel called Egyptian army chief General Abdel Fattah al-Sisi to tell him about the U.S. decisions, speaking for about 40 minutes in what one U.S. official described as a friendly conversation.


Hagel stressed the importance of the U.S.-Egypt relationship but also underscored the U.S. view that Egypt needed to make progress toward democracy.


On August 14, Egypt's military-backed authorities smashed the two pro-Mursi sit-ins in Cairo, with hundreds of deaths, and then declared a state of emergency and imposed a curfew. Many of the Brotherhood's leaders have been arrested since.


Officials at Lockheed Martin, Boeing and General Dynamics Corp declined comment, referring queries to the U.S. government or military offices handling the weapons sales.


The United States has struggled to define its policy toward Egypt since the 2011 popular revolution that toppled its longtime ally, Hosni Mubarak, an authoritarian who had ruled the country for three decades.


While the United States tried to work with Mursi, announcing in March that it would give Egypt $250 million in economic aid, including $190 million in budget support, it became disenchanted with his failure to enact economic reforms or govern in a manner that brought the opposition into the political discourse.


Egypt for decades has been among the largest recipients of U.S. military and economic aid because of its 1979 peace treaty with U.S. ally Israel, which agreed as a result of the pact to withdraw from the Sinai Peninsula it seized from Egypt in 1967.


The United States has long provided Egypt with about $1.55 billion in annual aid, including $1.3 billion for the military.


(Additional reporting by Mark Felsenthal; Steve Holland; Roberta Rampton; Andrea Shalal-esa and Phil Stewart; Writing by Arshad Mohammed; Editing by Peter Cooney)



Source: http://news.yahoo.com/u-withholding-tanks-cash-loan-egypt-source-204928792.html
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