NY Post : Congress proposing to cut corporate tax rate by 10%

Congress has a bill ready to cut the corporate tax rate to 25 percent as a measure in combating US firms merging with overseas companies to solely lower their tax bill.
“At 35 percent, US corporations are at a major competitive disadvantage,” says Elaine Kamarck, a co-chairwoman of the bi-partisan group Reforming America’s Taxes Equitably (RATE).
Her group, lobbying to lower the corporate rate to 25 percent, is pushing a tax-reform proposal pending in the House by Ways and Means Committee Chairman Dave Camp.
The tax reform is essential to creating jobs for young Americans seeking to begin their adult lives, Camp (R-MI) said in a statement.
But some proponents of the measure are saying even a 25-percent rate is far too high and won’t stop the bleeding of US firms’ revenue to more tax-friendly foreign enclaves.
Kamarck, a former Clinton administration official, said the difference in tax rates between the US and other major trading partners is dangerous for the country. She notes that Canada — which until recently had a 21 percent rate — has dropped it to 16.5 percent.
“We’re talking about a major trading partner that is much more competitive,” Kamarck warned. “And if we don’t fix this, we’ll have more tax inversions, more corporations moving their headquarters elsewhere, taking lots of jobs with them and hurting the economies of American cities.”
And less tax revenue from the proposed 28 percent cut from a rate of 35 percent to a rate of 25 percent.
“Lowering the corporate tax rate from 35 percent to 25 percent not only would increase America’s ability to compete internationally, but would also ensure that American corporations have more resources here in the United States to invest, hire and grow their businesses,” according to a committee tax reform memo.
Proponents of the 25 percent rate say it would add 581,000 jobs annually and increase GDP growth by 1 percent.

NY Post : Hermès customers say their Birkin bags smell like marijuana

Hermès’ iconic bag, the Birkin, has a pungent problem — customers are returning some recent orders of the wildly expensive bags to the boutiques, complaining they smell of marijuana.
Customers — some of whom have paid about $20,000 or more for the exclusive bags — have been told by staff at the luxury goods store that there was a problem with a “badly tanned” batch of leather from a supplier to Hermès.
They claim the tanning process somehow makes the leather smell like marijuana whenever it heats up in warm temperatures, such as in direct sunlight or in a hot car.
A source tells us:
‘“Owners are returning the Hermès bags back to boutiques across the US, including the Madison Avenue store, saying they smell of skunk. The bags are being sent back to Paris as nobody knows quite how to deal with this embarrassing situation.”’
Apparently, this is a worldwide problem as Hermès bags are distributed to boutiques in limited quantities and are often on back or special order.
While the problem does not affect all Hermès leather products, we are told this does affect multiple bags in varying colors, ranging in designs such as the Birkin, the Kelly and the Elan clutch, which retail from $5,000 to more than $20,000, all of which had been purchased in 2013 and 2014. It is not believed the problem affects the Hermès crocodile skin bags, which can sell for more than $60,000. Customers are reporting that Hermès staff are saying the bags have to go back to Paris, have the bad-smelling leather panels removed and the entire bag rebuilt.
While a New York-based Hermès rep didn’t respond to requests for comment, the so-called “skunk stinky syndrome” has become a subject of discussion on Web forums devoted to luxury goods.
One Kelly bag owner posted on PurseBlog:
‘“After riding in the car with her for about 30 minutes, I smelled what I thought was a dead skunk. Another 30 minutes later I could still smell the dead skunk, and I thought it was odd, but never imagined it could be my bag. I keep (it) in an armoire . . . When I opened the cabinet door this morning, the smell hit me, and I immediately knew it was the bag.”’

>>> iPhone 6 pre-orders in China reach 20 million, says report

iPhone 6 pre-orders in China reach 20 million, says report
Amy Fan, Taipei; Alex Wolfgram, DIGITIMES [Monday 13 October 2014]
Pre-orders for iPhone 6 and iPhone 6 Plus in China are estimated to have reached 20 million during the pre-order period from October 10-13, according to a report from China-based QQ.
The report stated that pre-orders on website Jingdong Mall reached nearly 10 million over the period, which coupled with orders direct to major telecom providers and Apple pushed total orders to 20 million.
On the Jingdong Mall site, 4.66 million of the orders were for the iPhone 6 and 4.82 million for the iPhone 6 Plus, the report added.

(HarvardBusinessManager) AS PHILOSOPHY MAKES YOU A BETTER MANAGER (Google Trans)


AS PHILOSOPHY MAKES YOU A BETTER MANAGER (Google Translation)
Self-management: Philosophy is suitable not only for intellectual discourse. The preoccupation with philosophical questions about values ​​or the meaning of life can be a great help for managers in professional life

Leadership coaching and development programs usually serve the purpose to change anything in the behavior of managers: They should recognize and change counter-productive behaviors and instead develop practices can lead the manager is more effective employees. But what about the inner beliefs and values ​​that lie behind the behavior of a manager?

In a typical coaching session, it is primarily to take advantage of a change in behavior and not about how useful it can be to even look into and think about his character and his beliefs. In our fast-paced and technology-driven business world, this is perhaps not surprising: If all people expect instant results (and pay for), only little time to pause and reflect. Although most people will always be aware of what advantages does introversion and mindfulness activities (such as yoga and meditation), are self-reflection and thinking about philosophical questions - for example, about values, positive character traits and wisdom - remains largely neglected. In executive coaching and -entwicklungsprogrammen it's rarely about what a benefit it brings you to clearly see his philosophical worldview. And now piling up the evidence that you should care a lot more about this topic.
For at least neuroscientific studies speak on the topic of self-reflection. A recent example from the journal BMC Neuroscience: In study subjects, a major brain region was activated (ie the front cingulate cortex (ACC)), when they devoted themselves to tasks that required self-reflection. As the scientists explain this study, the ACC plays therefore an important role, because he "detect discrepancies between the actual and the desired state", "convey an integration and evaluation of emotional, motivational and cognitive information" and "attention modulate" can . In other words, if you activated through self-reflection his ACC, can the positive impact on business success, because so executives can clearly be on their values ​​and strategic goals, bring together information in order to achieve these goals, and carry out effective action plans.

Philosophical counseling

But of course will not find most self-reflection processes take place in the lab - they must translate already in the upper echelons of business and other professional situations. The "philosophical counseling" is a very interesting way of doing this, as it allows for an intensive and focused discussion of such topics. It is an increasingly important winning, international movement, helps the rational thinking, sane people here for you to clearly in the face of changes and challenges on their world view and their objectives. To that effect, philosophical advisor and their clients structured conversations in which self-reflection plays an important role on their own goals and values. Philosophical counseling is based on the teachings of ancient Eastern and Western philosophers (Socrates to Confucius), but also of contemporary thinkers, support people in developing their personal philosophy of life and empowers them to achieve their highest human goals and ideals.

Take for example a CEO to his colleagues against condescending behaves constantly irritated eyes twisted, falls them into word or devalues ​​them in other ways. Now he is faced with a difficult ethical problem - a dilemma that could damage the financial position and the reputation of his company. But he has no one with whom he can discuss this problem because he has with his behavior so often met with his management team before the head. A philosophical counseling could give him a boost of self-reflection about his character and his values ​​and help him in this way to wean his insufferable behavior. A CEO who actually took one such advice in such a situation, it made a surprising discovery: The fact that he dealt with the teachings of an ancient philosopher (Socrates) and a modern thinker of the 20th century (Habermas), he succeeded in improving the capacity for dialogue, consensus-building and "communicative rationality" in his management team. By philosophical considerations, coupled with positive behavioral changes, he was able to successfully pass lead his company through a difficult crisis situation.

Even exercise

Especially at turning points in the career of a manager - if he is confronted with a difficult dilemma, a crisis or challenge - is very important philosophical self-reflection. How can managers make use of the advantages of such a self-reflection advantage, without therefore avoid the need to hire a philosophical consultant? For this purpose, they should first stop once and think about their most important values. Here you can the works of many philosophers (male and female, from various cultural backgrounds) help. As an example I quote here like my "SANE" -Akronym for the elementary questions of four outstanding Western philosophers: Socrates, Aristotle, Nietzsche and the existentialists.

Socrates : What is the most difficult question that might put someone on my current approach?

Aristotle : What characteristics are most important to me, and how shall I put them in my life to express?

Nietzsche : How do I want my channel "will to power", carrying my own interests and act in accordance with my values?

Existentialists (eg, Jean-Paul Sartre) : How can I take full responsibility for my decisions and their consequences?

This is not a purely academic exercise, but should actually pay off in the real business world. Through his serious reflection on these issues our CEO discovered a structured approach, with whose help he could handle the financial and ethical dilemma of his company. He realized that he held "respect others" and "modesty" for its key values ​​and most desirable virtues, and that motivated him to drop the derogatory behavior towards his management team and to engage in constructive discussions about how to proceed. So he came ultimately to a consensus and a well thought out decision. The fact that this CEO was thinking about his values ​​and opportunities for cooperation with his team, he could change the situation for the better and strengthen its leadership role.

Just like the previously mentioned mindfulness activities also requires self-reflection time and effort. But his thoughts one does not have to consciously turn off, but on the contrary, think hard about deep philosophical issues such as values ​​and the meaning of life. The reward of this self-reflection is what Aristotle ("practical wisdom") called phronsis: Thinking about timeless philosophical values ​​can inspire us to very contemporary behavioral changes that are our inner growth and sustainable success conducive.

(BFW) *FITCH SEES MAJORITY OF BANKS PASSING THE ECB ASSESSMENT

BFW 10/13 10:09 *FITCH SEES MAJORITY OF BANKS PASSING THE ECB ASSESSMENT
BN 10/13 10:08 *FITCH SEES MAJORITY OF BANKS PASSING THE ECB ASSESSMENT
BN 10/13 10:06 *FITCH:ECB EXERCISE ONLY A FIRST STEP, PROBLEM LOAN RISKS REMAIN
BN 10/13 10:05 *FITCH: ECB EXERCISE ONLY A FIRST STEP, PROBLEM LOAN RISKS
Fitch: ECB Exercise Only a First Step, Problem Loan Risks Remain
2014-10-13 10:05:14.351 GMT

FITCH: ECB EXERCISE ONLY A FIRST STEP, PROBLEM LOAN RISKS REMAIN

Link to Fitch Ratings' Report: The ECB’s Comprehensive Assessment: A First
Step
to Banking Union

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=790968
Fitch Ratings-London-13 October 2014: The ECB's comprehensive assessment is only
a first step in levelling the playing field for banks' access to private sector
funds and ability to extend lending. High levels of unreserved problem loans
will leave some banks, particularly in weaker countries, still vulnerable, Fitch
Ratings says.

There is a strong correlation between banks with the weakest balance sheets and
weak eurozone sovereigns. Greece, Ireland, Italy and Spain made up more than two
thirds of unreserved impaired loans at end-1H14. The banks with the highest
unreserved impaired loans relative to capital tend to be from peripheral
eurozone countries.

Capitalisation has strengthened notably for most of the 130 banks undergoing the
assessment since the last EU-wide stress test in 2011. This has continued into
2014, with reported equity for the banks in the exercise rising by around
EUR65bn in 1H14, including common equity raising of around EUR31bn. The banks
also issued EUR15bn of additional Tier 1 securities, with further progress in
3Q14.

We expect further capital increases and restructuring to follow the
comprehensive assessment at the banks identified as the weakest. Despite this,
balance sheet strength will remain dependent on collateral valuation. Further
progress will be needed in the first few years of the single supervisory
mechanism to strengthen the balance sheet of weaker banks.

We estimate it would cost around EUR70bn to raise reserve coverage of impaired
loans for all banks undergoing the assessment to 60%. Upping coverage to a very
solid (and arguably conservative) level of 80% would cost around EUR235bn. We
certainly do not expect this much capital to be injected into the system during
the next few years. The numbers do, however, give a strong indication of the
importance of remaining vigilant about collateral valuation when assessing
banks.

The value of the collateral will inevitably be affected by the economy. We
expect the link to remain for some time, so divergent strengths of national
economies will remain key drivers of the individual creditworthiness of banks.

We expect the majority of banks to pass the assessment, and many of those that
fail could be technical failures, in the sense that capital shortfalls have
either already been addressed in 2014 or capital is easily sourced from within a
banking group. Only a small minority of institutions are likely to have a
headline capital shortfall that means they will need to establish plans to raise
capital or reduce assets by the middle of 2015.

The ECB announced Friday that the comprehensive assessment results will be
published on 26 October. Following the publication of the results, banks will,
where necessary, have two weeks to submit capital plans to the ECB.

For more details, see "The ECB's Comprehensive Assessment - A First Step to
Banking Union", published today at www.fitchratings.com

Contact:

Bridget Gandy

Managing Director

Financial Institutions

+44 20 3530 1095

Fitch Ratings Limited

30 North Colonnade

London

E14 5GN

Alan Adkins

Senior Director

Credit Policy

+44 20 3530 1702

Cynthia Chan

Senior Director

Fitch Wire

+44 20 3530 1655

Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email:
elaine.bailey@fitchratings.com.

The above article originally appeared as a post on the Fitch Wire credit market
commentary page. The original article can be accessed at www.fitchratings.com.
All opinions expressed are those of Fitch Ratings.

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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
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PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
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Provider ID: 00782720
-0- Oct/13/2014 10:05 GMT

WSJ : General Electric Unit is in Talks to Buy Milestone Aviation Group

General Electric Unit is in Talks to Buy Milestone Aviation Group
GE Capital-Milestone Deal Could Value Helicopter Lessor at Over $2.5 Billion

General Electric Co. GE -2.06% ’s finance arm is negotiating a deal to buy Milestone Aviation Group Ltd., according to people familiar with the matter, as the industrial giant seeks to expand its aircraft-leasing operation into helicopters.

Milestone, co-founded by NetJets Inc. founder Richard Santulli, has announced plans for an initial public offering of stock. It’s not uncommon for a company exploring an IPO to simultaneously explore a full sale. The purchase price for Milestone could be more than $2.5 billion, according to some of the people.

Milestone, founded in 2010, is the world’s largest helicopter-leasing company by fleet value. Private-equity owned Milestone has acquired a $2.2 billion fleet of helicopters and placed orders for around $3 billion more. The company leases helicopters for uses including flying workers and supplies to and from oil platforms, search and rescue and emergency medical services.

GE Capital Aviation Services, or Gecas, as the unit is called, maintains a fleet of more than 1,600 aircraft it leases to airlines, cargo businesses and other customers. Acquiring Milestone would broaden Gecas’s portfolio beyond the competitive plane-leasing business, as it currently owns no helicopters.

Profits in the GE unit fell in 2013 to $896 million from $1.2 billion, on relatively flat sales of $5.3 billion. The aviation-leasing unit reported assets of $45.9 billion, out of $517 billion across GE Capital’s five businesses.

The company is in the midst of an effort to shrink the overall size of GE Capital, which generates significant profits for the parent company but ran into trouble during the financial crisis. GE management has stepped up its efforts to reshape the finance arm in recent years, including through the IPO this year of its consumer-finance business, which backs store-branded credit cards.

That business, rebranded as Synchrony Financial Inc., SYF -1.43% is to be fully split off from GE in a tax-free transaction next year, which will substantially reduce the company’s exposure to the consumer credit risks that have irked some investors since the crisis.

GE Chief Executive Jeff Immelt and others close to the company remain bullish on other aspects of GE Capital, which remains a critical portion of the parent’s earnings and is on track to contribute $3 billion in dividends to it this year.

The unit intends to continue shedding consumer-related assets while focusing on its “commercial core,” GE Chief Financial Officer Jeffrey Bornstein told investors in July.

The Milestone deal, should it come to fruition, would be the latest sale of an aircraft-leasing operation and could presage more such activity. American International Group Inc. AIG -0.91% last year agreed to sell control of its big aircraft-leasing business to AerCap Holdings AER -3.18% NV for $5.4 billion.

Surging demand for big helicopters from the Sikorsky Aircraft unit of United Technologies Corp. and others has prompted a number of new private equity-backed entrants into the business of renting rotorcraft.

These include Waypoint Leasing, backed by funds linked to the family office of Michael Dell and Soros Fund Management LLC, and Lobo Leasing Ltd., which is backed by Blackstone Group BX -0.57% LP.

Analysts have pointed to Waypoint, No. 2 in the helicopter-leasing business after Milestone, as another potential sale or IPO candidate.