Connect with us

Finance

Daughter of Huawei Founder Arrested at U.S. Request

Meng Wanzhou, the only child of the founder of Chinese telcom equipment firm Huawei Technologies Co, Ltd, was arrested in Canada on suspicion of violating United States sanctions against Iran.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Vancouver, Canada (4E) – Meng Wanzhou, the only child of the founder of Chinese telcom equipment firm Huawei Technologies Co, Ltd, was arrested in Canada on suspicion of violating United States sanctions against Iran.

Meng, also known as Cathy Meng, is Huawei’s chief financial officer. She was arrested in Vancouver, British Columbia on Dec. 1, said the Department of Justice Canada. She was taken into custody at the request of the U.S. Department of Justice (DOJ), which also wants hee extradited to the United States.

Meng’s bail hearing is set for Friday. The Canadian DOJ refused to provide more details about Meng’s arrest, saying there is a publication ban in effect at her request.

Meng’s father is Huawei founder Ren Zhengfei, a former engineer in the People’s Liberation Army, founded Huawei in 1987. Ren has a net worth of $2.8 billion.

The U.S. DOJ and the Department of Defense have been investigating Huawei since 2016 for exporting Huawei products originating in the U.S. to Iran and other countries in violation of U.S. sanctions on Iran.

Meng’s arrest is the latest in a series of legal problems that beset Huawei. Huawei has been banned by Australia, the United Kingdom and New Zealand out of concerns Huawei equipment can spy on their users.

Huawei has been banned from selling network systems in the U.S. since 2012. In January of that year, the U.S. Congress introduced a bill to ban U.S. government agencies from using phones and equipment made by Huawei and ZTE Corporation.

The Director of National Intelligence; the heads of the CIA, FBI, and the National Security Agency; the Defense Intelligence Agency and the National Geospatial Intelligence Agency last February testified before the U.S. Senate that Huawei products are a potential security risk to U.S. users.

Article – All Rights Reserved.
Provided by FeedSyndicate

Invests are pleased to have a team of talented correspondents, who are able to bring you quality content on a daily basis. The editorial team cover every industry and have leading market experts from the stock market, ex military journalists, cryptocurrency to health and lifestyle. If it’s important to you it’s important to us and we’ve got the best in the business bringing it to you.

Finance

European Central Bank Finally Ends Massive QE Program

On December 31, the European Central Bank (ECB) will formally end its almost four-year old quantitative easing (QE) program that prevented the euro zone economy from succumbing to its own version of the U.S. Great Recession of 2008.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Frankfurt, Germany (4E) – On December 31, the European Central Bank (ECB) will formally end its almost four-year old quantitative easing (QE) program that prevented the euro zone economy from succumbing to its own version of the U.S. Great Recession of 2008.

ECB will stop expanding the multi-trillion Euro asset purchasing program, and will instead switch to reinvesting cash from maturing bonds to purchase additional debt. These purchases should keep borrowing costs on the low-end until 2021.

The ECB Governing Council confirmed that bond purchases will plunge from €15 billion a month to zero by the end of the year. It also left benchmark interest rates unchanged.

Introduced in March 2015, ECB’s QE program saw the bank buy more than €2.6 trillion ($2.9 trillion) in a successful bid to prevent the bloc’s banking system from unraveling. The QE measures are widely credited with helping revive the 19-member currency bloc after a double-dip recession and the holdover effects of the European debt crisis.

“With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” asked Carsten Brzeski, chief economist at ING. “It seems as if the ECB wants to keep as many cards as possible close to its chest,” Brzeski said.

The timing of the ECB’s move, however, is contentious. Political developments in the United Kingdom over Brexit; Italy over excessive government spending and France over street violence seems to question the wisdom of ending QE by year-end.

The ECB meeting comes a week ahead of the U.S. Federal Reserve’s December meeting where it is expected to raise interest rates one-quarter point, its last for the year. Slowing growth in the U.S. and worldwide, due partly to Trump’s trade war, has some economists expecting the Fed to forego the next quarter-point rate hike in March.

The U.S. economy is showing clear signs of slowing down while its three equities markets have been wracked by extreme volatility linked to Trump’s trade war for the past two months.

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Finance

California’s Housing Crisis Spiraling Out of Control

California’s four decades’ old housing shortage now threatens to strangle the high-tech industries on which it relies for prosperity while hurling more people into poverty and inflating the ranks of the homeless.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Sacramento, CA, United States (4E) – California’s four decades’ old housing shortage now threatens to strangle the high-tech industries on which it relies for prosperity while hurling more people into poverty and inflating the ranks of the homeless.

The current housing shortage has been estimated at 3 to 4 million housing units, or some 20% to 30% of California’s current housing inventory of 14 million. That’s not enough for the new jobs being created at Silicon Valley.

San Francisco Bay area cities added 400,000 new jobs but only issued 60,000 permits for new housing units from 2012 to 2017. As a result, the housing crisis is damaging the state’s high-growth economy as employers now have to contend with an increasing shortage of skilled workers who can’t find housing.

State officials estimate that California needs to build 180,000 new units of housing every year. Housing has topped 100,000 units in recent years, but that’s far short of the demand

This shortage is especially acute in coastal areas where the housing squeeze is the tightest. This supply dearth is worsened by stiff local resistance to housing construction. Several California counties such as Ventura County and a number of cities have adopted Save Open Space and Agricultural Resources (SOAR) restrictions that make it almost impossible to build housing on agricultural land.

Worse, the wildfires that devastated communities in Ventura County and other regions are adding to the housing squeeze.

One of the dire consequences of this huge imbalance between supply and demand is that California now has the 49th lowest ratio of housing units per resident in the United States. The worst result is sky high real estate prices. Median home prices now stand at $1.3 million in San Francisco and $1 million in San Jose, for example.

Worse, the housing crisis has exacerbated old social ills. Homelessness per capita is now the third highest in the U.S. while less than a third of Californians can afford a median priced home. California’s has the country’s highest level of poverty.

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Finance

U.S. CEOs Predict Economic Recession by Year-end

It’s the post-Christmas “gift” no right-minded person wants to receive — but a recession might be in the offing before this tumultuous year ends.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

New York, NY, United States (4E) – It’s the post-Christmas “gift” no right-minded person wants to receive — but a recession might be in the offing before this tumultuous year ends.

A demoralizing new survey shows American CEOs think a recession might strike as early as the year-end only two short weeks away. Economists and investors alike have been sounding the alarm for months about the likelihood of an economic recession, one of whose main triggers is the economic uncertainty caused by Trump’s trade war.

A New York Times survey surprisingly revealed that almost half of the 134 business leaders at the Yale CEO Summit expected a recession to strike by the end of the year. It said this finding was the direst yet, and shows just how worried corporate executives are about an imminent recession.

A full 67 percent of the leaders cited U.S. political instability — especially Trump’s poor performance as president — and Trump’s trade war with the world as the major triggers for the upcoming recesison.

The U.S. has enjoyed a record 10 years of economic growth since the Great Recession of 2008, and by all measures, is due for a recession. Analysts said the gnawing fear about the oncoming recession is reaching fever pitch.

“The end is near for the near-decade-long burst of global economic growth,” predicted John Graham, a finance professor at Duke and overseer of the survey.

The findings from the New York Times survey also coincide with a Duke University Fuqua School of Business survey earlier this month that found nearly half of all U.S. CFOs also believe a recession is near but predicted it will hit by the end of 2019.

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Trending