90 seconds at 9 am with BNZ: Obama proposes new "Buffett" tax for rich; Greece eyes new austerity measures; UBS rogue losses get bigger

90 seconds at 9 am with BNZ: Obama proposes new "Buffett" tax for rich; Greece eyes new austerity measures; UBS rogue losses get bigger

Amanda Morrall details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news of a proposed new tax in the U.S., more austerity measures in Greece and greater than expected losses in the UBS rogue trading scandal.

After vocal complaints about how the rich aren't taxed enough, Warren Buffett might finally get his way

U.S. president Barack Obama is set to announce tomorrow a proposed new tax named in Buffett's honour. (See more here at Bloomberg).

The so-called "Buffett Tax" will be aimed at those earning more than US$1million a year. Buffett has publically confessed that he pays less tax than his secretary -- Just over 17%.

While the Buffet Tax, if adopted, would not generate significantly greater revenues, it is expected to curry favour with Democratic voters.

And in Europe, the Greek debt drama continues.

Greek Prime Minister George Papandreo cancelled a scheduled trip to the U.S. this weekend to hold an emergency meeting today with his cabinet. (See more comprehensive coverage at Reuters).

The session is in advance of an IMF meeting with EU officials Monday who want assurances from Greece it has a decisive plan to deal with its budget shortfall before releasing a €8 billion tranche of bail-out money.

The Greeks are expected to discuss public sector lay offs and cuts to pensions as a way bridge their deficit.

Meanwhile, Swiss Bank UBS is trying to account for one of its own financial vanishing acts. The bank revised its estimated losses from a rogue equity trader from $2 billion up to $2.3 billion. (More details here from Reuters).

Chief Executive Oswald Gruebel, in an interview with Swiss television, took responsibility for the incident and said the bank would be revising its strategy as a result.

"It is obvious that these incidents will have an influence on the strategy of the investment bank," he said.

"I will bear all the consequences of the incident. They will be announced as soon as we put them in practice.''

London trader Kweku Adoboli  was charged on Friday with fraud and false accounting dating back to 2008. Adoboli allegedly concealed his risky deals by creating fictitious hedging positions in internal systems.

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14 Comments

So long as it is understood what a hypocrite Puffet is - (read last part of link). You have to start doubting his motivation. 

I suspect 17% tax is a lot more tax than his secretary pays.

The whole Greek fiasco is becoming a snore fest......like a leper who won't go away because everytime he gets a hand out it falls off........... Italy Spain portugal careful not to giggle for fear of laughing their heads off..!....now that's contagious.

This is worth the read from the perspective of others...perhaps property taxation  is not off the list when a real need to tighten  becomes the prevailing mood.

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=457867&version=1&template_id=39&parent_id=21

Oh forgot to mention Roche bid for humanitarian award takes a knock.....

GENEVA - Swiss pharmaceutical giant Roche has stopped delivering its medicines to some Greek hospitals as they have failed to pay their bills.

Love the pragmatism of the Swiss.......neutral to a fault.

So Roche should supply for free then? Whats the point of investing in R&D if the customers will not pay their bills?

it's just a giggle the Best Status....well not for the cancer sufferers of course......but I thought I might get someone else on the hook...

You are right of course you don't pay you don't play.........ahhh commerce may yet have it's small part to play in getting the numbers down yet... eh..? how very anti corporate that would be.

By the way did you read the link ...very good..with a fair bit more info on what the Greek powers are thinking...or not as the case may be.

Every little bit alps, Count.

Some things in Europe are bad

The Greeks can  really make you mad

And Americans , just make you swear and curse

When the banks make you bristle

Don't borrow , give a whistle

And this'll cheer you up , and the ref

===============================

And ........ remember you're not a Wallaby

Remember the Irish with some glee

===============================

Always look on the funny side of life

Dingo Deans is in alot of strife ....

... tah da , tah da da da da .... tah da , tah da da da da

 

" Christchurch Recovery Threatened " is the title of Hamilton.Hindin.Greene's morning clients' briefing . It seems that some property owners , hacked off at the glacial pace of recovery , are taking their insurance money to re-invest elsewhere , Auckland and Brisbane being cited .

Only last Friday was the 14 storey Westpac Building ( Cashel St. ) of Miles Middleton slated for demolition . Progress is , sub-glacial .

Property developer Ernest Duval says that alot of property owners would rather purchase elsewhere and get an immediate cashflow , than grapple with a consents hearing , toughened building standards , and the ongoing shadow of possible government intervention in Christchurch .

..... the CBD is not proposed to be re-opened until April 2012 .

FYI release from English's office:

Finance Minister Bill English leaves tomorrow for New York and Washington DC, where he will visit the World Bank and International Monetary Fund, and meet Federal Reserve chairman Ben Bernanke.

During the visit, Mr English will attend the annual meeting of the World Bank board of governors. He will also hold discussions with a range of business, financial market and government representatives.

“This visit is timely, in light of economic and financial market events around the world in recent months,” Mr English says.

“In particular, ongoing concern about debt in Europe and the United States reinforces the need for New Zealand to press on with its programme of building faster growth around savings and investment, with less reliance on borrowing from foreign lenders.

“I’m looking forward to meeting a number of other finance ministers at the World Bank – including the Chinese Finance Minister Xie Xuren.

“Given the economic uncertainty and volatility we’ve seen in Europe and the United States this year, it’s important that New Zealand continues to engage with its trading partners and share ideas on managing common challenges.”

Mr English returns to New Zealand on 27 September.

Is this just Billy boys performance review by his masters and an update of orders for him to follow?

How did Bollards performance review go last week?  He didn't sound that elated - is he dealing with an internal conflict of interest? 

Why?

And don't they all have Skype?

Why..? Tribeless........because Billy Bob needs to go press the flesh of the game-makers....that's why...!

 Aint you never heard ...You wanna grow up to be a big big man

                                          You gotta git alittle dirt on your hands........................boy.

Billy Bob thinks skype is the noise his boots make when he fixes to cleaning the scrapings off on the Parlimentary grates.

Sides which, they already met Bolly Bib.....and twernt impressed enough not to ask for his boss this time.

Gummy'd love to give all of our politicians a permanent 'round-the-world air-ticket .... Get the whole shooting-box lot of them out of the country ...

..... and let the productive sectors and folk of NZ get on with progress , unhindered by any more idiotic bureaucratic interference  .......