Nathan Andrada – Fourth Estate Cooperative Contributor
London, United Kingdom (4E) – UK bank Barclays Plc said adjusted first-quarter earnings declined 25 per cent to 1.8bn pounds amid costs related to the bank’s restructuring program. Pretax profit excluding losses due to debt valuation stood at 1.79bn pounds ($2.7bn), lower compared to 2.4bn pounds in the previous year, according to the statement released on Wednesday by the London-based bank which is also the first British bank to report first-quarter results. The figure missed the 2.1bn-pound forecast by eight analysts that Bloomberg News surveyed. The drop in profits was primarily because of the costs linked to the lender’s efforts to restructure its private wealth and investment management division as well as its investment banking arm, Barclaycard. As part of the overhaul, Barclays said it will cut 3,700 jobs, a [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
New York, NY, United States (4E) – Argentina’s bond payment proposal was rejected by holdout creditors on Friday, which leaves the matter to the U.S. appeals court to make a ruling that could push Argentina into a fresh default. The legal battle between Argentina and its bond creditors in the Second Circuit has raised concerns that the South American country could get into technical default on its restructured debt. The case is critical for investors since it would not only determine if owners of Argentine performing bonds will get paid, but it could also set a precedent for sovereign restructurings around the globe. The panel, which consists of three judges, will decide whether Argentina’s proposal to pay 20 cents on each dollar amount of bonds complies with the ruling by [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
Beijing, China (4E) – Iceland concluded a free trade pact with China, becoming the first European country to reach such an agreement with the world’s second-largest economy. The deal, which was signed by trade officials during Iceland Prime Minister Johanna Sigurdardottir’s state visit to Beijing, would lead to the elimination of most tariffs over the next several years. The move is also seen as Iceland’s bid to promote its expertise in geothermal energy to the Asian economy. Iceland is strengthening its links with China as it tries to emerge from an economic collapse in 2008, which saw its three biggest banks defaulting on their $85bn debt. The tiny island nation is also speeding up efforts to revive its $14.4bn economy by going back to industries it used to rely on for [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
Sydney, Australia (4E) – Credit agency Fitch has reaffirmed the AAA rating for Australia, but said the slowdown in the mining sector could create an impact to the country’s economy. Fitch’s decision means Australia will remain as among the few nations that have the highest rating from all three agencies that include S&P and Moody’s. Australia’s Treasurer Wayne Swan on Friday welcomed the decision to affirm the country’s coveted credit rating, and added that it highlights the underlying strength of the economy. The credit rating reflects the ability of Australia, which has survived the financial crisis without going into recession, to repay its foreign debt and is used as a comparison with other economies. Fitch said the strong performance of the mining sector and demand for resources would continue to [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
Nicosia, Cyprus (4E) – The Cyprus parliament is scheduled to have an emergency session on Monday to tackle the eurozone bailout plan that has drawn criticism and anger from the public. The deal has been reluctantly supported by the country’s president although it is not certain it will get enough support from parliament to ensure passage. Cyprus President Nicos Anastasiades will make his case before parliament at 4 p.m. in the capital Nicosia in support of the rescue package that includes a first-time move by the eurozone to penalize depositors. The president’s Democratic Rally party, which controls 20 seats in the 56-member chamber, requires the backing of the legislation from other parties to secure ratification of the bailout. The 10bn euro ($13bn) bailout agreed by the EU and the International [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
Nicosia, Cyprus (4E) – The Cyprus government has delayed a parliamentary session aimed to tackle a levy on bank savings which forms part of the international bailout fund to help the country stave off bankruptcy. The emergency vote was pushed back to Monday after it was originally scheduled on Sunday. The 17-state eurozone demanded a 10 per cent levy on deposits as a condition for the 10bn euro ($13bn) bailout plan, which has received anger and criticism from the people of the eastern Mediterranean nation. On Sunday, several parties in the 56-member parliament, where there is no party that holds absolute majority, were in discussions to decide over the bank levy. Three parties have said that they will not support the proposal. The postponement of Sunday’s parliamentary debate aimed to [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
New York, NY, United States (4E) – Berkshire Hathaway and 3G Capital have agreed to buy H.J. Heinz and take the company private, according to the food giant. Berkshire and the Brazilian-owned private-equity firm agreed to spend $23bn for the acquisition, making the deal one of the biggest-ever in the food industry. Ownership will be shared by the two companies, management of operations will be headed by 3G. Under the deal, Heinz shareholders are set to receive $72.50 in cash per common stock they own. Including the estimated outstanding debt of Heinz, the transaction is valued at $28bn. The Pittsburgh-based company makes $11.6bn of its annual sales outside the U.S., representing two-thirds of its total sales. With strong sales in emerging markets and impressive cash flow, Heinz could become the [...] Continue Reading…

Fourth Estate Cooperative Staff
Washington, United States (4E) – The Fitch ratings agency on Tuesday told the U.S. Congress to reach an agreement on raising national debt’s ceiling in time else face a downward rating. Currently, the U.S. is enjoying top “AAA” level rating from the agency. Fitch said that it may revise its ratings of U.S. debt instruments, in case Washington fails to raise it in time, however, added that it believes the risk of U.S. default as extremely low. The U.S. federal debt’s legal ceiling reached at $16.394 trillion at the end of last month. The agency stressed on the need for American lawmakers to quickly decide on ways to raise this limit within a month or two, adding that it may otherwise not be able to borrow to pay bills. In August [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
Washington, DC, United States (4E) – House Speaker John Boehner flatly rejected the request for powers by President Barack Obama to raise the federal government’s debt limit, as part of discussions to avert the “fiscal cliff.” On Thursday, Boehner and President Obama met privately for another round of back-and-forth talks on spending cuts, tax hikes and other possible ways to avoid the event that would kick in at the start of next year. Both congressional Republicans and the Obama administration have exchanged insults over the talks, with the White House spokesperson Jay Carney on Thursday casting Boehner’s proposal as “fantasy economics.” Earlier, Boehner told media reporters that Obama is not serious about reaching a deal to avert the automatic spending cuts and expiration of Bush administration tax cuts — all [...] Continue Reading…

ProPublica Staff
Washington, DC, United States (ProPublica) – by Marian Wang The financial aid award letters that colleges send to prospective students can be confusing: Many mix grants, scholarships and loans all under the heading of “Award,” “Financial Assistance,” or “Offered Financial Aid.” Some schools also suggest loans in amounts that families can’t afford. Take Parent Plus loans, a federal program that allows families to take out as much as they need, after other aid is applied, to pay for their children’s college costs. As we recently reported with the Chronicle of Higher Education, Plus loans are remarkably easy to get. With minimal underwriting and no assessment of whether parents can actually afford the loans, families can end up overburdened by debt. Colleges often exacerbate things when their letters lay out, or “package in,” large Plus loans [...] Continue Reading…

Nathan Andrada – Fourth Estate Cooperative Contributor
Berlin, Germany (4E) – Germany saw its in second quarter gross domestic product (GDP) rise by 0.3 per cent, according to Eurostat data released on Tuesday. France, the region’s second largest economy, had zero growth in the quarter, and dodged economists’ projection of 0.1 per cent decline. Germany, the euro zone’s biggest economy, may have grown at a slower pace in the second quarter compared to the 0.5 per cent growth in the first quarter quarter, but the figure still beat economists’ estimates. Second-quarter expansion in Germany was fueled by decent domestic consumption and net trade figures with exports outpacing imports, according to the statistics office report released on Tuesday. It was enough to offset the slowdown in fixed investments like factories and machinery. Germany and France may have escaped [...] Continue Reading…