"US middle market leveraged buyout (LBO) transactions are becoming increasingly frothy. According to the latest data from Lincoln International, risk-return fundamentals in the space are worse than they were in 2007. Here are some disturbing facts about leveraged transactions in US middle markets:"
Scratches to Sketches
Wednesday 17 September 2014
US launches mystery satellite into space - video | Science | The Guardian
Better cameras?
"A mystery satellite is launched into space from Cape Canaveral Air Force Station in Florida on Tuesday evening. The US government's classified CLIO satellite was built by Lockheed Martin, one of the world's largest defence contractors. Atlas rockets are known to carry payloads into space relating to weather, telecommunications and national security"
Leading tech investors warn of bubble risk 'unprecedented since 1999' | Technology | theguardian.com
"Two of the world's leading tech investors have warned the new wave of tech companies and their backers are taking on risk and burning through cash at rates unseen since 1999 when the "dotcom bubble" burst.
http://www.theguardian.com/technology/2014/sep/16/tech-bubble-warning-investors-dotcom-losing-money
Bill Gurley, partner at Silicon Valley-based investor Benchmark, sounded the horn of doom on Monday warning that "Silicon Valley as a whole or that the venture-capital community or startup community is taking on an excessive amount of risk right now."
Revamping Europe’s Tattered Social Contract by Kemal Derviş - Project Syndicate
"WASHINGTON, DC – For most of the beginning of 2014, the eurozone seemed to be in a state of recovery – weak and unsteady, but nonetheless real. In April, the International Monetary Fund estimated that overall GDP growth would reach 1.2% this year, with slowly declining unemployment, up from its previous forecast of 1% growth. With the threat of unsustainably high interest rates in the countries of the eurozone periphery having disappeared, the path to moderate recovery was supposedly open, to be followed by some acceleration in growth in 2015."
Read more at http://www.project-syndicate.org/commentary/kemal-dervi--explains-why-structural-reforms-cannot-ignore-the-social--historical--and-political-context
Dani Rodrik warns that agreement among economists can create an illusion of certain knowledge. - Project Syndicate
"In fact, economists agree on many things, a number of which are politically controversial. The Harvard economist Greg Mankiw listed some of them in 2009. The following propositions garnered support from at least 90% of economists: import tariffs and quotas reduce general economic welfare; rent controls reduce the supply of housing; floating exchange rates provide an effective international monetary system; the US should not restrict employers from outsourcing work to foreign countries; and fiscal policy stimulates the economy when there is less than full employment."
How the Rich Rule by Dani Rodrik - Project Syndicate
PRINCETON – It is hardly news that the rich have more political power than the poor, even in democratic countries where everyone gets a single vote in elections. But two political scientists, Martin Gilens of Princeton University and Benjamin Page of Northwestern University, have recently produced some stark findings for the United States that have dramatic implications for the functioning of democracy – in the US and elsewhere.
Read more at http://www.project-syndicate.org/commentary/dani-rodrik-says-that-widening-inequality-drives-economic-elites-toward-sectarian-politics
Vanguard Scotland? by Robert Skidelsky - Project Syndicate
"LONDON – Since I believe that the Scots are sensible, I think that they will vote "no" this week to independence. But, whichever way the vote goes, the spectacular rise of nationalism, in Scotland and elsewhere in Europe, is a symptom of a diseased political mainstream.
Many are now convinced that the current way of organizing our affairs does not deserve such unquestioning allegiance; that the political system has closed down serious debate on economic and social alternatives; that banks and oligarchs rule; and that democracy is a sham. Nationalism promises an escape from the discipline of "sensible" alternatives that turn out to offer no alternative."
Read more at http://www.project-syndicate.org/commentary/robert-skidelsky-sees-behind-scotland-s-independence-referendum-the-failed-promises-of-liberal-capitalism
WATCH: New Cheetah robot will run silent rings around your nightmares (Science Alert)
"Cheetah is also more environmentally friendly than similar robots that have come before it, being the first to use an electric engine for its running and jumping movements. Not only does this make it more energy efficient and quieter than a robot fitted with a combustion engine, but, as Pearson points it, it also demonstrates that electrical engines can be just as powerful as their fuel-guzzling counterparts."
Northern Lights may be seen over Britain - Telegraph
"Great swathes of Britain could be treated to a dramatic display of the Northern Lights tonight as a result of a strong solar flare which has sent huge amounts of magnetically charged particles heading for Earth."
Video: Iceland's Bardarbunga volcano erupts under Northern Lights - Telegraph
"The first part of the video is a timelapse animation of the aurora borealis, often referred to as the 'Northern Lights', above the volcano.http://www.telegraph.co.uk/news/worldnews/europe/iceland/11099223/Icelands-Bardarbunga-volcano-erupts-under-Northern-Lights.html
The second part shows a close-up view of lava fountains filmed from a helicopter approximately 1km from the crater."
Russia Facts Compared To Other Countries - Business Insider
Russia has been all over the news lately – from the Sochi Winter Olympics to the tension in Crimea, but how well do you really know this country? Impress everyone around the water cooler with these incredible facts, compiled by Markets reporter Mamta Badkar.
Read more: http://www.businessinsider.com/russia-facts-2014-3
Read more: http://www.businessinsider.com/russia-facts-2014-3
Apple 12.9-Inch iPad - Business Insider
"The new iPad will have a 12.9-inch screen, which is just a hair smaller than the screen on the biggest MacBook Air. Today's iPad Air has a 9.7-inch screen. The iPad Mini has a 7.85-inch screen. The big-screen iPad will launch in the first quarter of 2015, according to the report."
Read more: http://www.businessinsider.com/apple-12-9-inch-ipad-2014-8
Read more: http://www.businessinsider.com/apple-12-9-inch-ipad-2014-8
Apple iPad Air 2 And Other Products May Come Next Month - Business Insider
"At the same time, The Daily Dot is reporting that we'll see a new sixth-generation iPad, a refreshed iPad mini, and the launch of Apple's new Mac software (OS X Yosemite) on Oct. 21. The website says it spoke with "sources familiar with the matter."
Read more: http://www.businessinsider.com/apple-ipad-air-2-release-rumors-2014-9
Bloomberg is also reporting that Apple will introduce new iPads in mid-October. The Loop's Jim Dalrymple doesn't think there will be an event on Oct. 21, although he didn't share any thoughts on whether or not iPads will be coming next month. "
Read more: http://www.businessinsider.com/apple-ipad-air-2-release-rumors-2014-9
Playing God | Perspectives | BillMoyers.com
"Take Jeff Greene, otherwise known as the "Meltdown Mogul." Back in 2010, he had the chutzpah to campaign in the Democratic primary for a Florida senate seat in a Miami neighborhood ravaged by the subprime mortgage debacle — precisely the arena in which he had grown fabulously rich. In the process, he rallied locals against Washington insiders and regaled them with stories of his life as a busboy at the Breakers Hotel in Palm Beach. Protected from the Florida sun by his Prada shades, he alluded to his wealth as evidence that, as a maestro of collateralized debt obligations, no one knew better than he how to run the economy he had helped to pulverize. He put an exclamation point on his campaign by flying off in his private jet only after securely strapping himself in with his gold-plated seat buckles."
In my humble opinion, the Scots should stay permanently as part of the UK, so my advice would be to vote no against independence
I grew up in a Scots community in Canada going by the name of Kincardine, Ontario. I believe, the Scots should stay as part of the UK, not that they could not make a go of it as an independent nation. My view is based on the mathematics of it all coming from the tradition of the policy economist Jan Tinbergen. There simply are not enough policy instruments in the independent Scotland to make a wonderful go of it. Like it or not, the UK and its currency are small potatoes and getting smaller. Eventually, one has to wonder whether an overvalued currency like the pound is really going to survive as a meaningful entity. Even the US dollar is losing its lustre.
The real problem in my view has to do with a loss of trust in the leadership of the UK's many elites, particularly its banking, industrial, commercial, religious, political, and royal elites. There has been such faith given to multiculturalism in the UK that many think too many fifth nation people are calling themselves British. Its all about trust and the failure of the elites to mobilise trust.
Distance and the aloofness of London means that its charm as a golden hub are waning. The gold seems tarnished and debased. While the Scots are extraordinarily wonderful in the way they support the royals, there are misgivings about the potential new leader, Charles. Queen Elizabeth cannot reign for ever bless her soul, and the departure of familiar elderly faces will require massive new loyalties that Charles ascendency would only diminish. However, if a Scot lineage can be introduced meaningfully into the future, that would be a plus.
Another issue is foreign influence over policy emanating from London. That so many English want out of Europe is pretty scary. The Scots may see things very differently, being a bit Irish in their attitude to Europe. If Britain wants to stay together there has to be meaningful large scale investment in industry in Scot emerging from the halls of London. Few doubt that the Scots education system is not superior to that of England in educating Brits. So many British universities are financed by foreign enrolments losing that trickle down effort if there ever was one.
Ah! I have changed my mind. The Scots should vote yes! Will ye no think on that...
Will Scots really vote for independence on Thursday?: Paul Krugman | PennLive.com
"And polling suggests that support for independence has surged over the past few months, largely because pro-independence campaigners have managed to reduce the "fear factor" — that is, concern about the economic risks of going it alone. At this point the outcome looks like a tossup."
PAUL KRUGMAN: The Scots should be afraid, very afraid | More Opinions | The Sun Herald
"Well, I have a message for the Scots: Be afraid, be very afraid. The risks of going it alone are huge. You may think that Scotland can become another Canada, but it's all too likely that it would end up becoming Spain without the sunshine.
Comparing Scotland with Canada seems, at first, pretty reasonable. After all, Canada, like Scotland, is a relatively small economy that does most of its trade with a much larger neighbor. Also like Scotland, it is politically to the left of that giant neighbor. And what the Canadian example shows is that this can work. Canada is prosperous, economically stable (although I worry about high household debt and what looks like a major housing bubble) and has successfully pursued policies well to the left of those south of the border: single-payer health insurance, more generous aid to the poor, higher overall taxation."
http://www.sunherald.com/2014/09/16/5803335/paul-krugman-the-scots-should.htmlA Real-Time Look at Sea Level Rise Caused by Climate Change » EcoWatch
"Center for American Progress released a video today about Norfolk, Virginia, a city on the front-lines of the fight against rising seas. The city of Norfolk represents a real-time look at what other coastal cities will face if steps aren't taken to prepare for the future. Sea level rise is a slow-moving threat that presents a tremendous risk to some of America's most populous cities."
BMW i3 vs. Mercedes B-Class: Which German electric car is better? - CSMonitor.com
"BMW i3 and Mercedes B-Class electric car models from 2014 were recently put to the test by 'Car and Driver', The BMW i3 was praised for its ambitiousness and the B-Class for its restrained styling, but which luxury electric model came out on top? "
http://www.csmonitor.com/Business/In-Gear/2014/0912/BMW-i3-vs.-Mercedes-B-Class-Which-German-electric-car-is-better?utm_source=Sailthru&utm_medium=email&utm_term=BizTech&utm_campaign=20140916_Newsletter%3ABizTech_Sailthru&cmpid=ema%3Anws%3ABizTech%2520Weekly%2520%2809-17-2014%29
As Scots debate independence, some in England say 'good riddance' - CSMonitor.com
"Alistair Clark, a senior politics lecturer at Newcastle University, says the English response was dependent on the proximity to Scotland. He says some people in the north and northeast were concerned about the economic impact on their lives, but people living further south were dismissive."
Ahead of Fed statement, consumers should prepare for interest rate hikes - CSMonitor.com
"Later this afternoon, Federal Reserve chairwoman Janet Yellen will deliver comments to wrap up the Fed's latest policy meeting. Analysts and investors, of course, will be on the lookout for hints on when the Fed will be making certain policy moves with big economic implications, including the expected end of its bond-buying purchases next month and the eventual hiking of interest rates."
Need a fracking supporter? Hire a homeless person. | Grist
How very criminally Russian of them?
"If you were looking for an excuse to stop and get a cruller at Dunkin', here you go:Dunkin' Donuts just committed to buy all its palm oil from sources that do not cut down the rainforest. (Update: One day later Krispy Kreme announced it too was moving to zero-deforestation doughnuts by the end of 2016)."
Dunkin’ Donuts cleans up its palm-oil act (and Krispy Kreme follows suit) | Grist
"If you were looking for an excuse to stop and get a cruller at Dunkin', here you go:Dunkin' Donuts just committed to buy all its palm oil from sources that do not cut down the rainforest. (Update: One day later Krispy Kreme announced it too was moving to zero-deforestation doughnuts by the end of 2016)."
UK London house prices boom past £500,000 | News | Mortgage Strategy
"Average London house prices rocketed 19 per cent to over £500,000 in the 12 months to July 2014, according to the Office for National Statistics.
The average property in the capital is now valued at £514,000, up from £432,000 in July 2013. Prices in the South East also experienced double-digit growth, rising 12 per cent to £337,000 from £300,000 a year earlier."
OECD slashes its Eurozone growth forecast by a third | City A.M.
"The recovery in the euro area has remained disappointing, notably in the largest countries: Germany, France and Italy. Confidence is again weakening, and the anaemic state of demand is reflected in the decline in inflation, which is near zero in the zone as a whole and negative in several countries.
http://www.cityam.com/1410781895/oecd-slashes-its-eurozone-growth-forecast-third
While the resumption in growth in some periphery economies is encouraging, a number of these countries still face significant structural and fiscal challenges, together with a legacy of high debt."
Wine war in Tuscany as growers warned that vines damage environment - Telegraph
"Tuscany would not be Tuscany without its gently sloping hillsides covered in rows of vines, but the region's winemakers have been warned that too many vineyards could damage the environment."
Italian wine faces worst grape harvest in half a century - Telegraph
"Wine producers in Italy are facing their worst grape harvest for more than half a century due to an unusually wet spring and summer.http://www.telegraph.co.uk/news/worldnews/europe/italy/11087480/Italian-wine-faces-worst-grape-harvest-in-half-a-century.html
Italy is normally the world's biggest wine producer but the poor harvest, which has just started in some regions, means that the accolade is likely to go to France this year."
'Miracle' recovery in Bordeaux wine thanks to autumn heatwave - Telegraph
"After months of cool, rainy weather that brought the prospect of a poor grape harvest, winemakers in Bordeaux are looking forward to exceptional vintages thanks to the Indian summer."
Scottish Independence: Academic says Firth of Clyde could hold "oil boom" - Energy Voice
"Prof Howell, who is backing a Yes vote, said the geology in the area met three key requirements for having favourable conditions for the potential of a new discovery.
He acknowledged that does not necessarily mean that hydrocarbons would be found, however.
Prof Howell said: "The truth is that without drilling it is impossible to say whether oil or gas is present in the region or not.
"There are many places in the world were favourable conditions exist but hydrocarbons are not found.
"What we do know is that the only way we will ever find out is by lifting the exploration ban and then drilling wells to test the subsurface."
http://www.energyvoice.com/2014/09/scottish-independence-academic-says-firth-clyde-hold-oil-boom/Opinion: Alex Kemp - The potential recovery of oil and gas - Energy Voice
"Using a cautious investment screening price of $90 (real) we find that, given some degree of success in implementing the Wood Review recommendations, cumulative production could be 14-15 billion barrels of oil equivalent (bn boe).
If targeted tax incentives are introduced following the current tax review the result could be 15-16.5 bn boe.
But the activity will not end then. At the year 2050 there remain many undeveloped existing discoveries containing 2.5-3 bn boe of potentially recoverable oil and gas and further new discoveries made in the period to 2045 with 1-1.5 bn boe of reserves."
http://www.energyvoice.com/2014/09/alex-kemp-potential-recovery-oil-gas/Russia is our most dangerous neighbour - FT.com
"High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.http://www.ft.com/cms/s/0/efd7099e-3c41-11e4-a6ce-00144feabdc0.html#ixzz3Db8eSiFT
ussia is both a tragedy and a menace. In the Financial Times this week Sergey Karaganov offered an arresting insight into the blend of self-pity and braggadocio currently at work in Moscow. It is as depressing as it is disturbing. Western policy makers seem to believe the Islamic State of Iraq and the Levant (known as Isis) is the greater danger. But Russia is the nuclear-armed rump of a former superpower and, ruled by an amoral autocrat, it frightens me even more. For Europe and, I believe, the US, there is no greater foreign policy question than how to deal with today's Russia."
ussia is both a tragedy and a menace. In the Financial Times this week Sergey Karaganov offered an arresting insight into the blend of self-pity and braggadocio currently at work in Moscow. It is as depressing as it is disturbing. Western policy makers seem to believe the Islamic State of Iraq and the Levant (known as Isis) is the greater danger. But Russia is the nuclear-armed rump of a former superpower and, ruled by an amoral autocrat, it frightens me even more. For Europe and, I believe, the US, there is no greater foreign policy question than how to deal with today's Russia."
US household incomes stagnate despite economic recovery - FT.com
"High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.http://www.ft.com/cms/s/0/c1bc60ba-3db1-11e4-b782-00144feabdc0.html#ixzz3Db8GjKaE
The lack of any rise in household incomes shows why consumption growth is still sluggish and President Barack Obama has received little political credit for the economy recovery.
The median US household earned $51,939 in 2013 and the median household of working age earned $58,448, up by 0.4 per cent. The annual figures measure income before taxes and benefits such as food stamps."
Scientists now realize that Magnetism only exists because of quantum mechanics (Science Alert)
"Next time you stick a magnet to your fridge, you may be surprised to learn that you're using a quantum mechanical phenomenon.
Although magnetism has been known for centuries to be, quite literally, all around us (even our blood is magnetic!), scientists have just begun to understand in the past century that magnetism is a purely quantum mechanical phenomenon.
The Bohr-van Leeuwen theorem, which proved this, has been called one of the most deflationary theorems in modern science because it means that classical physics cannot account for magnetism, as previously thought."
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