Category Archives: Industry Jobs Oil Economics

Chicago, Case Study of Foreign Takeover

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Chicago is in financial trouble and could be the next major metropolitan city to stand in bankruptcy court. This is not a recent condition yet in 2004, infrastructure was being sold off to raise revenue.

The Brookings Institution found that the Chicago region had more than 4,000 foreign-owned establishments that employed more than 223,000 people, according to 2011 data, the most recent available. In total employment at foreign-owned companies, Chicago ranks third in the nation, behind New York and Los Angeles.

Toll roads in Chicago are now in the ownership of Cintra, the largest private sector transportation corporation. Cintra is based in Spain and layers deep the King of Spain Juan Carlos is a player. No wonder that Michelle Obama has visited Spain twice eh?

Another move for Chicago, Al Faisal Group (one of Qatar real estate investment arms) bought the Radisson Blu Aqua hotel.

Qatar Airways announced plans to expand its U.S. service in 2014 by adding Dallas, Miami and Philadelphia to a lineup of destinations that includes Houston, Washington, New York and Chicago. And last month, Qatar said it will spend $19 billion to buy 50 Boeing 777 aircraft, part of a larger deal between the U.S. aviation company and Qatar and the United Arab Emirates.

The number of Qatari students at U.S. universities has jumped fivefold in the past decade, and the Qatari Foundation International is spending $5 million this year to encourage U.S. schools to teach Arabic. *** Qatar provided financial and political support for Islamist groups such as the Muslim Brotherhood in Egypt and the ruling Ennahda party in Tunisia, but it has more recently backed away from that role, especially after a military coup ousted Qatar’s allies from control of Egypt.

Then there is China and a new foothold in Chicago.

Wanda announces $900 million investment in Chicago hotel project

The Wanda Group announced on June 8 that it would invest US$900 million in the United States’ second largest city Chicago, to build the city’s third tallest building.

The Chicago site is located in the vibrant and affluent Lakeshore East development in downtown Chicago, one of the last remaining sites within the Lakeshore East area. Many of Chicago’s well-known sites and attractions are within walking distance from the site, such as the Theatre District, Museum Campus and Michigan Ave.

Wanda Group will build a 350-meter high, 89-floor skyscraper, which will have a gross floor area of 131,400 square meters. The building will also house a 240-room luxury five-star hotel as well as luxury apartments and a commercial center. The project will begin construction this year and officially open in 2018.

The Chicago project is Wanda Group’s third overseas five-star hotel project, following announcements of luxury hotel projects in London and Madrid.

“Investing in Chicago property is just Wanda’s first move into the US real estate market,” said Wanda Group Chairman Wang Jianlin, “Within a year, Wanda will invest in more five-star hotel projects in major US cities like New York, Los Angeles and San Francisco. By 2020, Wanda will have Wanda branded five-star hotels in 12-15 major world cities and build an internationally influential Chinese luxury hotel brand.” If you go to the movies, an AMC theater….China.

In January 2011 The Chicago Council on Global Affairs released the report Capturing Chicago’s Global Opportunity. The report found that although Chicago ranks as one of the top ten global cities, “it lags its global peers in the amount of inward foreign direct investment (FDI) in the city.” This was based on the 2010 PricewaterhouseCoopers Cities of Opportunity study in which Chicago scored seventeenth out of twenty-one capital market centers around the world on physical growth due to the low level of FDI. The more recent 2011 Cities of Opportunity study ranked Chicago twenty-fourth out of twenty-six cities in attracting FDI capital investments and greenfield projects.

To better understand the challenges and opportunities of FDI in Chicago and develop a comprehensive FDI strategy for the area, The Chicago Council on Global Affairs convened a group of prominent Chicago business and civic leaders that began meeting in January 2012. The study was cochaired by Michael H. Moskow, former president and chief executive officer of the Federal Reserve Bank of Chicago and currently vice chairman and senior fellow for the global economy at The Chicago Council on Global Affairs, and William A. Osborn, former chairman and chief executive officer of Northern Trust Corporation. After months of research, interviews, meetings on the issue and on the strategies and experiences of other major global metropolitan areas, the study group developed key recommendations to help the city reach out to foreign-owned companies and increase FDI through existing and new sources of investment.

This report presents the findings and recommendations of the study group members on how to best advance Chicago’s economic development through global engagement.

Oh, if you happen to shop for fine and distinctive jewels at Tiffany’s, well Qatar has ownership in that too. So, what foreign entity owns your company, your roads, your grocery store or has financial influence on the school your child attends?

 

 

Intersection with China, Spratley Showdown Brewing

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CNN: The Spratlys are some 750 separate, uninhabited islands in the middle of the South China Sea. Most are more like rocks than islands, but their ownership has been fiercely contested over the last decade by China, Vietnam, the Philippines, Brunei, Taiwan and Malaysia. All for good reason — the Spratlys sit off sizable reserves of oil and natural gas.

China isn’t just remaking the Spratlys. It’s preparing to defend its claims by force.

Outraged, other countries like the Philippines and Vietnam have been urging the United States to counter China’s de facto annexation and gross breach of international law. As usual, the Obama administration has instead opted to remain largely neutral, while hoping a few expressions of diplomatic concern will make the problem go away.

But with the Fiery Cross Reef runway ready to be finished by year’s end (as one unnamed Navy official told Reuters), the U.S. military is planning to send aircraft and ships to counter China’s moves. The littoral combat ship USS Fort Worth sailed out to the Spratlys this month, along with a reconnaissance unmanned aerial vehicle and Seahawk helicopter to reconnoiter China’s activities.

China warns U.S. surveillance plane

The Chinese navy issued warnings eight times as a U.S. surveillance plane on Wednesday swooped over islands that Beijing is using to extend its zone of influence.

The series of man-made islands and the massive Chinese military build-up on them have alarmed the Pentagon, which is carrying out the surveillance flights in order to make clear the U.S. does not recognize China’s territorial claims. The militarized islands have also alarmed America’s regional allies.

A CNN team was given exclusive access to join in the surveillance flights over the contested waters, which the Pentagon allowed for the first time in order to raise awareness about the challenge posed by the islands and the growing U.S. response.

CNN was aboard the P8-A Poseidon, America’s most advanced surveillance and submarine-hunting aircraft, and quickly learned that the Chinese are themselves displeased by the U.S. pushback.

“This is the Chinese navy … This is the Chinese navy … Please go away … to avoid misunderstanding,” a voice in English crackled through the radio of the aircraft in which CNN was present.

This is the first time first time the Pentagon has declassified video of China’s building activity and audio of Chinese challenges of a U.S. aircraft.

The aircraft flew at 15,000 feet in the air at its lowest point, but the U.S. is considering flying such surveillance missions even closer over the islands, as well as sailing U.S. warships within miles of them, as part of the new, more robust U.S. military posture in the area.

Soon after the Chinese communication was heard, its source appeared on the horizon seemingly out of nowhere: an island made by China some 600 miles from its coastline.

The South China Sea is the subject of numerous rival — often messy — territorial claims over an area that includes fertile fishing grounds and potentially rich reserves of undersea natural resources. China is increasingly showing that even far from its mainland, it sees itself as having jurisdiction over the body of water.

Wednesday’s mission was specifically aimed at monitoring Chinese activities on three islands that months ago were reefs barely peaking above the waves. Now they are massive construction projects that the U.S. fears will soon be fully functioning military installations.

China’s alarming creation of entirely new territory in the South China Sea is one part of a broader military push that some fear is intended to challenge U.S. dominance in the region. Beijing is sailing its first aircraft carrier; equipping its nuclear missiles with multiple warheads; developing missiles to destroy us warships; and, now, building military bases far from its shores.

“I’m scratching my head like everyone else as to what’s the (Chinese) end game here. We have seen increased activity even recently on what appears to be the building of military infrastructure,” Capt. Mike Parker, commander of the fleet of P8 and P3 surveillance aircraft deployed to Asia, told CNN aboard the P8.

“We were just challenged 30 minutes ago and the challenge came from the Chinese navy, and I’m highly confident it came from ashore, this facility here,” Parker said of the Chinese message for the U.S. plane to move away, as he pointed to an early warning radar station on an expanded Fiery Cross Reef.

In just two years, China has expanded these islands by 2,000 acres — the equivalent of 1,500 football fields — and counting, an engineering marvel in waters as deep as 300 feet.

In video filmed by the P8’s surveillance cameras, we see that in addition to early warning radar, Fiery Cross Reef is now home to military barracks, a lofty lookout tower and a runway long enough to handle every aircraft in the Chinese military. Some call it China’s “unsinkable aircraft carrier.”

In a sign of just how valuable China views these islands to be, the new islands are already well protected.

From the cockpit, Lt. Cmdr Matt Newman told CNN, “There’s obviously a lot of surface traffic down there: Chinese warships, Chinese coast guard ships. They have air search radars, so there’s a pretty good bet they’re tracking us.”

The proof was loud and clear. The Chinese navy ordered the P8 out of the airspace eight times on this mission alone.

Each time, the American pilots told them calmly and uniformly that the P8 was flying through international airspace.

That answer sometimes frustrated the Chinese radio operator on the other end.

Once he responds with exasperation: “This is the Chinese navy … You go!”

This is a military-to-military stand-off in the skies, but civilian aircraft can find themselves in the middle.

As was heard on the first of several Chinese warning on the radio, the pilot of a Delta flight in the area spoke on the same frequency, quickly identifying himself as commercial. The voice on the radio then identified himself as “the Chinese Navy” and the Delta flight went on its way.

The more China builds, U.S. commanders told CNN, the more frequently and aggressively the Chinese navy warns away U.S. military aircraft.

Over Fiery Cross Reef and, later, Mischief Reef, fleets of dozens of dredgers could be seen hard at work, sucking sand off the bottom of the sea and blowing it in huge plumes to create new land above the surface, while digging deep harbors below.

“We see this every day,” Parker said. “I think they work weekends on this because we see it all the time.”

The Buzzwords are Refugee and Asylum

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UN pushes for migrants to be called refugees

In part: SAN JOSE, Costa Rica (AP) — United Nations officials are pushing for many of the Central Americans fleeing to the U.S. to be treated as refugees displaced by armed conflict, a designation meant to increase pressure on the United States and Mexico to accept tens of thousands of people currently ineligible for asylum.

Officials with the U.N. High Commissioner for Refugees say they hope to see movement toward a regional agreement on that status Thursday when migration and interior department representatives from the U.S., Mexico, and Central America meet in Nicaragua. The group will discuss updating a 30-year-old declaration regarding the obligations that nations have to aid refugees.

Sure there are thousands and in some cases millions that have fled their home country over brutal regimes, civil wars, disease, lack of economic opportunity and to perhaps incite attacks and terrorism in other countries.

U.N. Calls on Western Nations to Shelter Syrian Refugees

With Syria’s neighbors increasingly shutting their borders to refugees and thousands trying to cross the Mediterranean Sea in search of safety, the war in Syria is creating the worst global refugee crisis in decades, putting new pressure on the United States and other Western countries to open their doors — and in turn, prompting domestic political backlash.

Not since the wave of people who fled Southeast Asia after the war in Vietnam have the world’s industrialized countries been under such intense pressure to share the burden of taking in refugees, experts say. Nor has the task of offering sanctuary been so politically fraught.

The United States is scheduled to take in its largest group of Syrian refugees to date — up to 2,000 by the fall of this year, compared with a total of about 700 since the civil war in Syria began four years ago, according to the State Department.

Here is a disturbing fact, the work that the United Nations High Commissioner for Refugees division does for refugees and asylees does NOT collaborate with U.S. agencies as they claim, unless it is on an exceptional basis. They maintain a database of applications and fingerprints that is not integrated or actually shared for background checks.

UNHCR seeks to contribute to informed decision-making and public debate by providing accurate, relevant and up-to-date statistics. As such, the Statistical Online Population Database provides data and trends on the “Population of concern to UNHCR”: refugees, asylum-seekers, returned refugees, internally displaced persons (IDPs) protected/assisted by UNHCR, returned IDPs, stateless persons, and others of concern to UNHCR, in more than 180 countries.

In a single electronic platform, UNHCR’s Statistical Online Population Database is bringing together for analysis and comparison standardized data on UNHCR’s population of concern at country, regional, and global levels.

The database is work-in-progress and will be updated on an ongoing basis. Currently, data up to 31 December 2012 can be downloaded from the Statistical Online Population Database. Some of the statistics contained in the Statistical Online Population Database, in particular the ones for 2012 should be considered provisional and subject to change. Some data in the database may differ from statistics published previously due to retroactive changes or the inclusion of previously unavailable data.

 

‘All data refer to the number of individuals with the exception of asylum-seekers in the United States of America, where figures are available only for the number of cases (which may include several individuals) submitted to the United States Department of Homeland Security (DHS). However, applications submitted to the Executive Office of Immigration Review (EOIR) of the United States department of Justice are recorded as individuals.’

‘A combination of armed conflict, deterioration of security or humanitarian situation and human rights concerns in a number of countries – notably the Syrian Arab Republic – have been among the main reasons for the sharp increase in the number of asylum-seekers registered among the main reasons for the sharp increase in the number of asylum-seekers registered among industrialized countries during 2014.’  Full document here. (It is a must read).

Sample application for asylum:

Note the cost of security weakness and lack of full collaboration:

Fifteen of the 19 hijackers were Saudi nationals. There were significant security weaknesses in the Saudi government’s issuance of Saudi passports in the period when the visas to the hijackers were issued. Two of the Saudi 9/11 hijackers may have obtained their passports legitimately or illegitimately with the help of a family member who worked in the passport office.

 

 

 

$6Billion in Fines for Rigging Currency

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Just pay the fine and no one goes to jail. Those that pay the billions in fines are the stockholders, there is never a personal or individual consequence. Jamie Dimon should have been in prison years ago, next to Bernie Madoff. Even more troubling is Jon Corzine with his criminal activity.

Attorney General, Loretta Lynch knows the depths of the fraudulent activity and seems to be complicit in giving individuals a blind-eye.

Big banks to pay $6B for market manipulation

Six of the biggest names in finance have agreed to pay nearly $6 billion dollars in penalties, with five pleading guilty to criminal charges over long-running manipulation of key financial markets.

The Justice Department announced the massive settlement Wednesday, its latest in a series of deals to bring to a close probes of financial manipulation of everything from benchmark interest rates to top currency exchanges.

Attorney General Loretta Lynch said the latest settlement brings to an end a manipulation scheme of “breathtaking flagrancy,” in which traders conspired to artificially alter currency exchange markets to obtain illicit profits.

U.S. authorities said that traders from competing banks frequently used chat rooms to conspire with each other to maximize profits for their institutions by manipulating currency trades, forming a group they dubbed “the cartel.” Dating back to 2007, Lynch said traders “acted as partners rather than competitors” in a “brazen display of collusion.”

The banks will pay the Justice Department and the Federal Reserve a total of $5.7 billion in criminal penalties, with most of the institutions also agreeing to plead guilty to some criminal charges.

Barclays, Citigroup, JPMorgan and the Royal Bank of Scotland all agreed to plead guilty to charges of conspiring to fix prices. UBS agreed to plead guilty to charges stemming from a previous investigation after the bank’s role in this new probe led the Justice Department to toss out a prior agreement not to seek criminal charges. Bank of America agreed to pay a fine as well.

The announcement is just the most recent in a string of settlements the government has struck with huge banks over industrywide bad behavior.

In April, Deutsche Bank agreed to pay a record $2.5 billion in fines, and fire several employees, for its role in rate-rigging. And in November, five large banks agreed to pay a combined $4.25 billion in penalties to U.S. and British authorities.

But those eye-popping numbers are unlikely to tamp down complaints from some lawmakers, like Sen. Elizabeth Warren (D-Mass.), and from outside groups that complain the government has failed to bring charges against top executives for illegal activity at their banks. Rather, they contend banks are happy to continue paying large fines as the cost of doing business.

On Tuesday, UBS announced it will pay $545 million to settle claims that it was manipulating the foreign exchange market. The bank also noted that the Justice Department terminated a 2012 non-prosecution agreement it struck with the bank, which was part of a previous settlement over interest-rate-rigging where the bank paid $1.5 billion.

But the government argued that the new charges violated the terms of that deal.

While the bank faces no criminal charges from the recent currency probe, the bank agreed to plead guilty to wire fraud stemming from the previous rate-rigging investigation, and attributed the misbehavior to “a small number of employees.”

Bank CEOs Blame Currency Rigging on the Work of a Few Bad Apples

Wall Street’s biggest banks admitted Wednesday to rigging currency markets around the world. Within minutes of the Justice Department’s announcement, they were blaming it on a few rotten apples.

“I share the frustration of shareholders and colleagues that some individuals have once more brought our company and industry into disrepute,” Barclays Plc Chief Executive Officer Antony Jenkins said in a statement announcing his bank’s guilty plea.

JPMorgan Chase & Co. CEO Jamie Dimon also pointed a finger at a few currency traders.

“The lesson here is that the conduct of a small group of employees, or of even a single employee, can reflect badly on all of us,” Dimon said in a statement.

Dimon ran his bank during the length of the currency conspiracy, which the Justice Department said lasted from 2007 through 2013. Jenkins has been CEO of Barclays since 2012.

Barclays and JPMorgan were among banks that didn’t detect and address traders’ illegal cooperation to manipulate benchmark currency prices, the Federal Reserve said Wednesday. Among the clues they missed: an instant-message group called “The Cartel,” where dealers exchanged information on client orders and decided how to trade.

Under a $5.8 billion settlement, JPMorgan, Barclays and units of Citigroup Inc. and Royal Bank of Scotland Group Plc agreed to plead guilty to conspiring to manipulate the price of U.S. dollars and euros.

‘Ethical Behavior’

Attorney General Loretta Lynch said at a news conference in Washington that the investigation is continuing. The Justice Department may bring charges against individuals, according to people familiar with the matter.

“Fostering a culture of ethical behavior has been, and continues to be, a top priority” for Citigroup, CEO Michael Corbat said in a statement. He added that the bank’s “internal investigation has so far resulted in nine terminations and additional disciplinary actions.”

RBS pinned the blame for violating U.S. antitrust law on one currency trader. Still, Chairman Philip Hampton said that more people may have been involved.

“We have dismissed three people and suspended two more pending further investigation,” Hampton said in a statement.

Wall Street and 5th Avenue Planned for Benghazi

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Imagine a hotel room at the Plaza Hotel, shopping at Bloomingdales and dining at the Rainbow Room in Benghazi. Yes Benghazi, after all the most feared leader, Muammar Gaddafi is dead and all is calm after the attack on American interests in 2012. So, never let a  good crisis go to waste. Libya had and has a deadly history where some elites had high aspirations for a new Libya.

Trey Gowdy, the Chairman of the Benghazi Commission likely has some documented trails on Hillary’s future dreams for Libya, but you don’t and should know even more of the story. Libya, is hardly the place for booking a vacation on a Club Med holiday but Hillary and her mobilized force sure thought it was a perfect future opportunity.

The crisis in Libya had a long and bloody history with daily urban warfare, leading up to 2011 and 2012. The Institute for the Study of War gathered the calendar of Libyan hostilities from countless sources demonstrating that a perfect storm was gathering. Several foreign governments and countries had interests in Libya to protect, so when the United States announced Gaddafi had to go, he was actually buckling to the pressure and was willing to turn over power to his Minister of Justice. Some surmised that Gaddafi would not actual go quietly such that he would fire more Scud missiles as the rebels advance, and fears remain that the regime may also deploy chemical weapons.

Remembering the urgent call as revealed in audio tapes released that Hillary made with her stewards, Susan Rice and Samantha Power following close behind that the U.S. had to act quickly to prevent an anticipated massacre. Yet no one at the Pentagon or AFRICOM had any fresh intelligence that a chemical weapons attack or a planned massacre was in the immediate forecast.

Meanwhile, the National Transition Council was born with collaboration of outside NGO’s and the United Nations seeking a diplomatic solution post Gaddafi where many meetings took place. The mission was to gain and manage control of Libya where a future country would have thriving towns, economic opportunities and well, great shopping and even a stock exchange that emulated Wall Street.

The National Transitional Council (NTC) was formed on the 27th of February, 2011 to act as the political face of the revolution. Officially established on the 5th of March 2011 in Benghazi, the unicameral legislative body is composed of 33 members, representing the different Libyan cities and towns, in addition Political Affairs, Economics, Legal Affairs, Youth, Women, Political Prisoners and Military Affairs. Identities of some members, mainly from the western side of Libya are kept confidential for safety reasons. The Chairman of the NTC is Mustafa Mohammed Abdul Jalil. Hillary’s interlocutor to the NTC was Mohamed Mansour el Kikhia and he has meetings with David L. Grange in Jordan on the future and control of Libya.

The legislative body is in place for an interim period, until free democratic elections are held establishing the new Parliament.

Hillary knew about the planned Benghazi attack, heck Sidney Blumenthal predicted it.

Back in the Clinton State Department, Hillary was working her intelligence channels and her operatives were crafting relationships to gain traction in 2012 and beyond. Mrs. Clinton mobilized an inner circle, they included Sidney Blumenthal, Tyler Drumheller, Cody Shearer, Andrew Shapiro, MG David L. Grange (ret), Najib Obeida and Mohamed Mansour el Kikhia.

When a hacker worked some keyboard magic, he uncovered emails to that pesky New York Clinton server publishing emails between Blumenthal and a Hillary email firewall person, likely either Huma Abedin, Jake Sullivan or Cheryl Mills, who would then forward the most significant transmissions to Hillary herself. Hillary had a spy network which was originally revealed during the published of the Wikileaks cables.

Sidney Blumenthal had his own operatives that he worked around the globe yet those with Libya assignments included many of those listed above. Two of particular interest are David L. Grange and Najib Obeida, a Libyan official. General Grange performed some Pentagon secret operations before he retired where he went on to be involved in Osprey Global Solutions and later in Constellations Group which was formed by Bill White, a philanthropist whose objective was generating networks and business opportunities in Libya. “Gaddafi is dead, or about to be, and there’s opportunities, let’s try to see who we know there.”

There is still hope for a Libyan version of Park Avenue, Wall Street and Club Med. The Obama administration has earmarked and of the funds requested for FY2015, $9.5 million in Economic Support Fund (ESF) monies would support U.S. Agency for International Development (USAID) programs “to help consolidate- democratic reforms” through technical assistance, training, capacity building, and electoral process support, including $3 million requested in part to fund the development of a “public financial management framework.” The Administration also requested an additional $20 million in global FY2015 Transition Initiatives funding over FY2014 levels and hopes to use $10 million of its Complex Crises Fund request “to address emerging needs and opportunities in the Middle East and North Africa (MENA) region.” Funds appropriated in these accounts may be programmed for operations in Libya.

Outlook
The 2012 attacks in Benghazi, the deaths of U.S. personnel, the emergence of terrorist threats on Libyan soil, and the internecine conflict between Libyan militias have reshaped debates in Washington about U.S. policy toward Libya. Following intense congressional debate over the merits of U.S. and NATO military intervention in Libya in 2011, many Members of Congress welcomed the announcement of Libya’s liberation, the formation of the interim Transitional National Council government, and the July 2012 national General National Congress election, while expressing concern about security in the country, the proliferation of weapons, and the prospects for a smooth political transition.
To date, the Obama Administration and Congress have agreed to support a range of security and transition support assistance programs in Libya, some of which respond to specific U.S. security concerns about unsecured weapons, terrorist safe-havens, and border security. Identifying and bringing those involved in the September 2012 Benghazi attacks to justice has become a priority issue in the bilateral relationship, as has confronting any Al Qaeda affiliated groups present in Libya. Securing stockpiles of Libyan weapons also remains an issue of broad congressional concern, as does ensuring that transitional authorities act in accordance with international human rights standards in pursuing justice and handling detainees.
U.S. officials must weigh demands for a response to immediate security threats emanating from Libya with longer-term concerns for Libya’s stability, the survival of its nascent democratic institutions, and the future of U.S.-Libyan relations. Decisions about responding to threats to U.S. security are complicated by the relative weakness of the Libyan state security apparatus and the risk of inflaming public opinion or undermining the image of elected Libyan leaders through direct or overt U.S. security responses. If conflict persists, congressional debate over transition and security assistance programs in Libya may intensify, with advocates possibly arguing for further investment to prevent a broader collapse and critics possibly arguing that a lack of political consensus among Libyans makes U.S. assistance unlikely to achieve intended objectives.

You have plenty of time to book your next vacation, keep some small arms handy though.