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Microsoft says older Windows versions will face performance hits after Meltdown, Spectre patches

Windows 7 and Windows 8 users will notice the greatest decrease in system performance after the processor patches are applied.

Microsoft has confirmed that users of older versions of Windows should expect to "notice a decrease in system performance" after they apply system patches to protect against the Meltdown and Spectre processor bugs. The bugs, which affect mostly Intel processors but also some ARM and AMD chips, expose the majority of the world's computers and phones to speculative execution side-channel attacks.

A successful attack could read portions of protected, sensitive memory, such as passwords and other secrets. Microsoft released security updates on January 3 to fix the issue at the operating system level. Intel also issued updates for its microcode.

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Philips personal health solutions:  Philips  Introducing Philips SmartSleep

 

Introducing Philips SmartSleep, the world’s first and only clinically proven wearable solution to improve deep sleep quality for consumers who do not get enough sleep

 

Las Vegas, Nevada and Amsterdam, the Netherlands – At CES 2018 (Booth # 44019, January 9-12, Las Vegas, NV), Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced SmartSleep, the world’s first and only clinically proven wearable solution for consumers to improve deep sleep quality for people who do not get enough sleep. SmartSleep is the latest addition to Philips’ growing portfolio of smart digital platforms and intelligent solutions that connect people, technology and data to give consumers data-driven insights into their health and access to professional expertise and advice. Other Philips highlights at CES 2018 include innovations in sleep and respiratory care, mother and child care, oral health, male grooming and skin care.

 

“At Philips, we believe there is always a way to make life better,” said Egbert van Acht, Chief Business Leader Personal Health businesses at Philips. “At this year’s CES we are showcasing innovations that help consumers take a more active role in managing their health and wellbeing. New innovative solutions like SmartSleep, which builds on our leadership in sleep therapy and more than 2.6 billion nights of sleep data [1] collected by Philips over the last 10 years, showcase how we are uniquely positioned to combine clinical know how with a superb consumer experience.”

 

Philips SmartSleep optimizes deep sleep with science Nearly 40 percent of people ages 25-54 get less than the recommended seven hours of sleep per night, which is reported to result in difficult concentration, memory and focus [2]. Studies [3] suggest that deep sleep, or slow wave sleep, plays a critical role in resetting our brains to be more alert and focused, and that people who experience high quality slow wave sleep have been shown to be more alert during the day, with better memory consolidation, executive function and daytime energy. 

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Philips Lighting High Tech Campus :  118 banen verdwijnen

Er worden 118 van de ruim 350 arbeidsplaatsen geschrapt, bevestigt het verlichtingsbedrijf berichtgeving hierover door het Eindhovens Dagblad.

De ingreep is bedoeld om de onderzoeksafdeling efficiënter en meer toegespitst te maken. Het bedrijf richt zicht tegenwoordig sterk op het zogeheten Internet of Things en slimme verlichtingssystemen.

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Jan De Nul Group and Smulders: Gigantic foundations for the Danish offshore wind farm Kriegers Flak leave Port of Ostend

Barge with the two impressive foundations of 10,000 tonnes and 8,000 tonnes, destined for the Danish offshore wind farm Kriegers Flak, has left the port of Ostend in Belgium – an important milestone of this project.

The barge is towed by the tug Zeus of Finland and is planned to arrive in Denmark on the 15th of January 2018. Depending on the weather conditions, the first foundation will be installed by the end of January, and the second a couple of weeks later. Once the foundations have been installed our most recent multipurpose vessel Adhémar de Saint-Venant will start with the ballasting and scour protection works.

About the Kriegers Flak Contract of Jan De Nul Group and Smulders

Jan De Nul Group and Smulders joined forces to build two Gravity Based Foundations (GBFs) for the high voltage station of the Danish offshore wind farm Kriegers Flak.

Both foundations consist of a concrete part (GBF) and a steel structure on top. Jan De Nul Group was responsible for the design and construction of the concrete GBF, while Smulders tookk care of the design and construction of the steel shafts and decks placed on top.

Jan De Nul Group is now in charge of the installation of both GBFs, the ballasting and the placement of scour protection in the offshore wind farm Kriegers Flak in Denmark.

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US Fed's Kashkari: Interest rates need to be low to get inflation rising toward 2%

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Merkel forced to compromise on several political issues this week. Elections looming! 

German chancellor Angela Merkel is set to compromise on several political issues like carbon reduction targets, migrants, in order to form the next government. Mrs. Merkel said, only a fews days left for a deal.  

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Boeing Sets Airplane Delivery Record, Finishes 2017 with Larger Order Book

Delivered 763 commercial airplanes to lead industry for sixth straight year

Won 912 net orders valued at $134.8 billion at list prices

Boeing (NYSE: BA) delivered more commercial airplanes than any manufacturer for the sixth consecutive year and set an industry record with 763 deliveries in 2017, driven by high output of the market-leading 737 and 787 jets. At the same time, the company grew its backlog with 912 net orders, reflecting healthy demand for its single-aisle and twin-aisle airplanes.

Boeing reached a new high on the 737 program as it raised production to 47 airplanes a month during the year and began delivering the new 737 MAX, contributing to a record 529 deliveries, including 74 of the MAX variety. On the 787 Dreamliner program, Boeing continued building at the highest production rate for a twin-aisle jet, leading to 136 deliveries for the year.

"The record-setting performance is a testament to our employees and supplier partners who continue to innovate new ways to design, build and deliver the most fuel-efficient airplanes to customers around the world," said Boeing Commercial Airplanes President & CEO Kevin McAllister.

On the orders front, 71 customers placed the 912 net orders, valued at $134.8 billion at list prices. The total extends Boeing's backlog to a record 5,864 airplanes – at year end – which is equal to about seven years of production.

"The strong sales activity reflects continuing strong demand for the 737 MAX family, including the ultra-efficient MAX 10 variant that we launched last year, and the market's increasing preference for Boeing's family of twin-aisle jets," said McAllister. "Our planned production increases over the coming years are designed to satisfy this robust demand."

In 2017, the 787 Dreamliner family racked up nearly 100 net orders and the 777 family captured 60 net orders, as shown in the table below. A detailed report is available on Boeing's Orders and Deliveries website.

Other major commercial airplanes milestones include the first flights of the 737 MAX 9 and the 787-10 Dreamliner, and the start of production of the 737 MAX 7 and the new 777X.

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Israeli PM Nethanyahu: The state of Israel has helped European countries to prevent several dozen terror attacks, including those involving civil aircraft.

"We have, through our intelligence services, provided information that has stopped several dozen major terrorist attacks, many of them in European countries. Some of these could have been mass attacks, of the worst kind that have ever been experienced on the soil of Europe, and even worse, because they involved civil aviation.

Israel has prevented that, and thereby helped save many European lives," Netanyahu said during a lunch with NATO member states' ambassadors in Jerusalem.

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FIOD: Doorzoekingen in onderzoek naar internationale belastingfraude. Het gaat om een onttrokken bedrag van 45.000.000 euro

 

De FIOD heeft vandaag met hulp van de Luxemburgse autoriteiten twee bedrijfspanden in Nederland en Luxemburg doorzocht. Dat gebeurde in een onderzoek naar belastingfraude met een vermoedelijk speciaal voor dit doel opgezette schijnconstructie met een bijbehorend doolhof van meerdere ondernemingen in diverse landen. Het gaat om een bedrag van 45.000.000 euro dat aan een (buitenlandse) belastingdienst afgedragen had moeten worden.

 

De doorzochte panden zijn een kantoor van een Nederlandse vermogensbeheerder en een Luxemburgs trustkantoor. Er is administratie in beslag genomen.De Nederlandse vermogensbeheerder en de drie directeuren en een manager, worden verdacht van het deelnemen aan een organisatie die onder meer tot doel had het doen van onjuiste aangiften dividendbelasting.  Het vermoeden is dat de Nederlandse vermogensbeheerder betrokken was bij het bedenken en opzetten van de ingewikkelde constructie. De constructie doet  vermoedelijk dienst als een internationaal fiscaal spiegelpaleis, waarin je iets anders ziet dan dat het is. De constructie zou alleen zijn opgezet om internationaal dividendbelastingfraude te plegen.  Dividendbelasting is een vorm van belasting die afgedragen moet worden over ‘winstuitkeringen’ die bedrijven doen.

 

Lening van 2 miljard euro

In de spiegelpaleisconstructie verstrekte een in Luxemburg opgerichte vennootschap fictief een lening van 2 miljard euro aan haar Luxemburgse moedermaatschappij. In ruil voor de ‘renteloze lening’ betaalde de moedermaatschappij een vergoeding van honderden miljoenen euro’s aan de dochtervennootschap. Die deed vervolgens een winstuitkering van honderden miljoenen euro’s aan de Nederlandse onderneming die aandelen bezat en die keerde dit op haar beurt weer uit aan een Brits bedrijf. Over de winstuitkering was 45 miljoen euro dividendbelasting verschuldigd. Dat is aan de Luxemburgse belastingdienst  afgedragen.

 

De Nederlandse vermogensbeheerder zou vervolgens bij het doorstorten van de winstuitkering naar Groot-Brittanië, een zogenoemde ‘nihil-aangifte’ voor dividendbelasting hebben gedaan. Dit omdat in Luxemburg al de dividendbelasting was betaald over de uitgekeerde winstdelingen, wat leidde tot een afdrachtvermindering door verrekening van de in Luxemburg afgedragen dividendbelasting. Uit gegevens van de Luxemburgse fiscus blijkt echter dat de dividendbelasting in Luxemburg weer was teruggehaald door de onderneming. Per saldo is er in Luxemburg dus geen dividendbelasting afgedragen. De vermogensbeheerder had in Nederland dus vermoedelijk geen ‘nihil-aangifte’ mogen doen. Het onderzoek zal moeten uitwijzen waar en op welke wijze enige belastingdienst uiteindelijk ook daadwerkelijk is benadeeld.

 

Belastingfraude ondermijnt systeem

Belastingfraude kan het stelsel ondermijnen. Door belastingfraude loopt de Staat inkomsten mis. Ook ondermijnt fraude het rechtvaardigheidsgevoel en het vertrouwen in de overheid. Daarom wordt het aangepakt. Criminaliteit is vaak grensoverschrijdend. Er zijn criminelen die door het opzetten van internationale constructies en het gebruik van valse documenten de autoriteiten een rad voor ogen proberen te draaien. Er wordt internationaal samengewerkt tussen verschillende Belastingdiensten en opsporingsdiensten. De internationale samenwerking is belangrijk om internationale belastingfraude te ontdekken en aan te pakken. Ook internationale belasting ontduikende schijnconstructies, ongeacht ten laste van welke schatkist het nadeel valt, staan hierbij in de aandacht.

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Wetsvoorstel over passagiersgevens naar Tweede Kamer

 

Luchtvaartmaatschappijen moeten in de loop van 2018 hun passagiersgegevens verstrekken aan de Passagiersinformatie-eenheid Nederland (Pi-NL), die tot taak heeft deze informatie te verwerken en te analyseren. De passagiersgegevens mogen alleen worden gebruikt om terroristische misdrijven en ernstige criminaliteit te voorkomen, op te sporen en te vervolgen. Het betreft vluchten naar of vanuit derde landen en vluchten die binnen de Europese Unie worden uitgevoerd.

De maatregel vloeit voort uit een wetsvoorstel van minister Grapperhaus (Justitie en Veiligheid) dat de Europese PNR-richtlijn (Passenger Name Record) omzet in Nederlands recht en vandaag bij de Tweede Kamer is ingediend. Doel van de richtlijn is de interne veiligheid binnen de Europese Unie te waarborgen en het leven en de veiligheid van personen te beschermen. Ook zal een effectievere samenwerking mogelijk zijn tussen de EU-lidstaten.

De minister van Justitie en Veiligheid is verantwoordelijk voor de uitvoering van de taken van de Pi-Nl. Het voornemen is om de eenheid onder te brengen bij de Koninklijke Marechaussee (KMar). De Pi-NL is een zelfstandige, gespecialiseerde eenheid met een eigen wettelijke taak en bevoegdheden. Bijvoorbeeld de uitwisseling van zowel de passagiersgegevens als het resultaat van de verwerking ervan met vergelijkbare units van andere lidstaten en met Europol. 

Ook kan een aantal bevoegde instanties bij de Pi-NL informatie opvragen met als doel onderzoek te doen of de nodige maatregelen te treffen om terroristische of ernstige misdrijven te voorkomen, op te sporen of te vervolgen. Deze instanties zijn: het openbaar ministerie, de politie, de bijzondere opsporingsdiensten, de Koninklijke marechaussee en de Rijksrecherche.

Het wetsvoorstel bevat verder bepalingen over rechtsbescherming, bewaartermijnen, gegevensbescherming en het toezicht op de gegevensverwerking, waaronder de plicht voor de Pi-NL om een functionaris voor gegevensbescherming te benoemen. 

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“Advisory Team Trump Split On Whether To Strike North Korea”

US officials are debating whether it’s possible to mount a limited military strike against North Korean sites without igniting an all-out war on the Korean Peninsula.

US could react to nuclear missile tests with a targeted strike against a North Korean facility to bloody Pyongyang’s nose and illustrate the high price the regime could pay for its behavior.

Tensions between North Korea and the United States have continued to escalate during the current administration, with President Trump taunting Kim Jong Un both on Twitter and in diplomatic settings.

While there has been a diplomatic breakthrough leading to a renewed fragile dialogue between North and South Korea, there is a general sense that Trump is just itching to put his “much bigger and more powerful nuclear button” to use.

Luckily, the decision to launch nuclear weapons is not up to one man. However, Trump’s infamously discordant cabinet is torn over what path the president should make.

According to a talk Secretary of State Rex Tillerson and Secretary of Defense James Mattis have urged Trump to proceed with caution, while national security adviser H.R. McMaster is advocating for a “bloody nose” strike.

A bloody nose attack is called so because it would “react to some nuclear or missile test with a targeted strike against a North Korean facility to bloody Pyongyang’s nose and illustrate the high price the regime could pay for its behavior.”

Such a strike could set the stage for a global nuclear catastrophe, so it is not a decision to be taken lightly.

Mattis previously predicted that Kim’s retaliation would launch “a war more serious in terms of human suffering than anything we’ve seen since 1953.”

Thanks to the Olympics and the current intra-Korean diplomatic opening, the next few months figure could be relatively calm.

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Europe in Expansion: Interview with Benoît Cœuré, Member of the Executive Board of the ECB

 

I. Europe: Mr Cœuré, how is Europe’s recovery progressing?

 

We don’t see it as a recovery anymore, but as an expansion. The annual growth rate in the euro area is the strongest for ten years. We expect a GDP growth rate of 2.4% for 2017, which by European standards is quite high. Business and consumer confidence are at their highest levels for over 17 years, according to the November reading of the European Commission’s Economic Sentiment Indicator. Seven million jobs have been created in the euro area since mid-2013.

 

Growth today is not only very strong, but also very broad-based. The breadth of the expansion in terms of countries and sectors is greater than at any point over the last 20 years. The expansion is also more sustainable as it is driven by domestic demand and an improving labour market, and it is less reliant on credit.

 

We have definitely left the crisis behind us. Europe is back!

 

How does it compare to the United States?

 

In 2016, the euro area grew faster than the United States. For 2017 and 2018, it is too early to tell, but the growth rates should be about the same. For example, the euro area flash manufacturing and composite output PMIs for December are at 60.6 (the highest since the series began in June 1997) and 58.0 (a 82-month high) respectively, comparable or somewhat higher than the level in the United States, Japan or the United Kingdom. 

 

Is unemployment still a major issue?

 

Unemployment is still an issue. At 8.8% in October, the euro area unemployment rate is the lowest since early 2009, but the rate still varies considerably across the euro area. Countries such as Germany or the Netherlands have practically full employment, but others, e.g. France and Italy, still have some catching-up to do.

 

In several Member States, such as Spain and Ireland, there have been bold labour market reforms, which are now yielding tangible benefits. This sends an important message: when European countries use a period of growth to implement further reforms, it works.

 

While Europe needs to rebuild fiscal buffers now, as Mario Draghi recently mentioned, the United States is embarking on a major tax reform, involving major tax cuts. How do Europeans see tasks on the fiscal side?

 

In Europe, there are two different discussions. One is on the level of the deficit, or “fiscal stance”, the other on the composition, i.e. the quality of public finances.

 

In all countries, there is scope to make public finances friendlier to growth, in particular to reduce non-productive public spending and cut distortionary taxes.

 

But not many countries have fiscal space, because their public debt is too high. Their priority should be to use the current economic expansion to rebuild fiscal buffers, so that when the next crisis hits, they can use fiscal policy to react to it. In the meantime, they can still improve the composition of their public finances.

 

There are a few countries, including Germany, that do have fiscal space. These countries should use that space to prepare for the future, although it is not for the ECB to tell them how to do it.

 

So Europeans need to carry out their own fiscal agenda, not follow the US?

 

It’s not for the ECB to comment, but I don't see a great appetite among European leaders to follow the US example at the current juncture.

 

What are the risks to Europe’s economy?

 

Risks are broadly balanced in our view, with positive risks coming from the euro area and negative risks coming from outside. The latter include geopolitical risks and risks stemming from emerging market economies.

 

At a deeper level, we see risks to global growth resulting from the erosion of support for international trade and openness. Europe clearly remains committed to openness and international cooperation. We are open for business. We don’t agree with those countries which want to curb international trade.

 

And let me add a more political remark. In a world which is more uncertain and volatile than ever, Europe can project itself on the world stage and work jointly with China to provide stability.

 

What are the positive risks from Europe?

 

History tells us that people tend to underestimate economic downturns and, likewise, in an upturn, there is a risk of underestimating the strength of the economy. For instance, we see very positive dynamics stemming from investment and domestic demand, and this creates positive multiplier effects.

 

II. Central banking

With the recovery turning into an expansion, it seems we are still not quite seeing monetary policy normalisation (QExit and rate rises)?

 

Indeed, our monetary policy will remain very accommodative. It has a single objective, which is to bring euro area inflation back to a level below, but close to, 2% over the medium term. Because inflation is still not at 2%, we will maintain an ample degree of monetary accommodation.

 

The strength of the recovery gives us increasing confidence that inflation will return towards 2% in a sustainable manner. That led to our decision to recalibrate our monetary policy support. We decided in October to reduce our monthly net asset purchases from €60 billion to €30 billion from January until at least September 2018, and longer if needed. By halving the monthly asset purchases we are recognising both the strength of the recovery and our greater confidence in the inflation outlook.

 

The euro area is not alone among major economies in having inflation that is kind of muted. Any fundamental reasons for this?

 

I think that we need a degree of humility here. There are many things we don’t understand very well, for example the impact of technology on industrial organisation, wages and prices. Technological change certainly is a common explanation for low inflation in all advanced economies.

 

Low productivity gains are also one explanation for the sustained weakness in wages across advanced economies, which in turn also have an impact on inflation.

 

There are factors specific to Europe as well, in particular high unemployment. Both the United States and Japan are close to full employment, while Europe is not. Europe is lagging behind the United States and Japan in the business cycle and still has some slack to absorb before reaching full employment. Many of the newly created jobs are based on part-time or fixed-term contracts, which dampen the prospect of rapid wage increases. That helps explain why inflation will only slowly move back towards 2% and why we still need ample monetary accommodation.

 

European financial markets already show a lot of frothiness, just like in the US.

 

In Europe, we see frothiness in some market segments or asset classes, but nothing that would be a concern at euro area level and would call for a monetary policy reaction.

 

Local issues call for local solutions, separate from monetary policy, or what we call macroprudential measures. A very recent example is the decision last Friday [15 December 2017] by the French macroprudential authority, the High Council for Financial Stability, to propose a measure to limit the exposure of large French banks to the most indebted companies, given concerns related to corporate debt growth in France. The macroprudential toolbox is being used. It has been used in several euro area countries, such as in Ireland in the case of mortgages.

 

The ECB is monitoring this closely. In principle we have the possibility to top up national measures, although we haven’t done so yet.

 

Your colleague, Yves Mersch, said earlier this month: “Nourishing a market belief that the exit might be permanently postponed could exacerbate the potential cliff effects”. An official from the People’s Bank of China (PBOC) made remarks along the same lines recently, warning of the risk of markets gaming monetary policy while rates remain low. How do you see central banks’ interaction with markets?

 

There is always a risk of central banks being led by financial markets instead of leading them.

 

We can’t ignore market reactions, because markets are important transmitters of monetary policy. This is also why we place importance on communication and lay out as clearly as possible our reaction function in our forward guidance. But we have to keep in mind that the ultimate yardstick for our action is inflation. We are not targeting financial asset prices.

 

Given the strength of the expansion, we are increasingly confident that inflation will rise towards 2% over the medium term. This justifies a gradual and cautious recalibration of monetary policy. Markets have to understand that QE will not last forever.

 

Could it be a bit behind the curve?

 

We have flexibility to react both ways. Given what we see in the economy, I believe that there is a reasonable chance that the extension of our asset purchase programme decided in October can be the last. But the Governing Council of the ECB has also made it clear that the programme can be kept in place for longer, should inflation disappoint on the downside. And if inflation turned out to be higher than currently expected, we would have plenty of instruments with which to react.

 

The generation of central bank governors who handled the crisis has now either retired or is close to retiring. How do you regard what they’ve done?

 

The main lesson from this crisis is that you have to think outside the box, be innovative, while at the same time staying within your political mandate. It’s a very delicate balance, but the Federal Reserve, the Bank of England and the ECB have all done it and succeeded.

 

Central bankers in some circumstances have to be bold and fast, but they also have to do things in a politically and legally acceptable manner. That’s what they’ve done, and that is also something to remember for the future.

 

Can central bankers push politicians to act if they are slow to act or make reforms?

 

Central bankers have no mandate and no legitimacy to push politicians. At the same time, they have a duty to speak their mind and publicly state what they think is necessary for economic policy.

 

III. China

Governor Zhou of the PBOC is also to retire (soon)? Looking from the outside, how do you see him?

 

What I particularly notice is Governor Zhou’s international role. I’ve listened to him many times in Basel, Washington and other places. He’s one of the most respected governors around the table. When he takes the floor, everyone stops to listen to him, which is not always the case in international meetings.

 

What has always struck me is that he expresses China’s position in a very clear way but he also aims to move the discussion on, seeking a consensus. That’s extremely valuable in an international discussion.

 

For me, the very thoughtful and analytical way he has of addressing issues is a very important contribution. He always takes the time to explain complex issues, including for instance recent developments in China’s financial system, which can be quite complex for outsiders to understand. He has a very clear and concise way of explaining things, making discussions more constructive.

 

How does the global central banking community view the PBOC’s role in recent years?

 

Over the last ten years or so, there has been a clear evolution. The PBOC has been engaging more and more with the international community and its central bank counterparts, in line with the changing role of China in the global economy.

 

From an ECB perspective, I can say that we now have a relationship with the PBOC that is as broad and deep as it is with a core group of other central banks, such as the Federal Reserve, the Bank of Japan, the Bank of England and maybe a few others. This includes discussions on financial markets, monetary policy, payment systems, to name just a few. The PBOC is part of that core group.

 

The ECB in June invested a small amount of foreign reserves in the renminbi. Why? Any plans ahead?

 

The amount is equivalent to €500 million, roughly 1% of the ECB’s foreign currency reserves. We sold US dollar reserves to do this. At the end of 2016, the ECB’s reserves consisted of 83% US dollars and 17% Japanese yen. We also have a €45 billion/RMB 350 billion bilateral currency swap agreement with the PBOC.

 

Both initiatives are an acknowledgement of the growing international role of the renminbi and a first step towards a better understanding of how the Chinese monetary and foreign exchange markets work.

 

I’m quite sure that there will be further steps in the future. But central banks are conservative by nature. This is a long-term process.

 

How do you see the prospect of RMB internationalisation?

 

To understand the international monetary system, one needs to take a very long-term perspective, even if the rise of China on the global economic stage has been much faster than anything we’ve seen before.

 

It’s quite evident to me that the renminbi will eventually become a major international currency, and I personally believe that a multi-polar monetary system is good for the stability of the global economy. For the renminbi to achieve that status, further steps will need to be taken, including a further opening of the capital account, the pace and modalities of which are for the Chinese authorities to decide.

 

IV. Digital currency and fintech

What do you think of Bitcoin?

 

What we are witnessing today is clearly a bubble, made possible by scarcity and by an expected sequence of gains which investors believe will be sustained, irrespective of the fundamentals. That is the definition of a bubble.

 

Bitcoin is not a currency. Investors should not believe that they will be able to use it as a means of payment. It is a speculative investment. There is a risk of large capital losses which investors should be aware of.

 

So the main concern related to Bitcoin is not a monetary one but one that relates to investor protection, and possibly also to tax evasion, money laundering and criminal finance.

 

With two American exchanges (CBOE and CME) introducing Bitcoin futures, how do you see the policy for it going forward?

 

The ECB is not a securities regulator. Regulators worldwide have recently warned investors repeatedly about possible losses. In Europe, the Fourth Anti-Money Laundering Directive, adopted by the European Council and the European Parliament last Friday [15 December 2017] requires exchange platforms and wallet providers to report suspicious transactions and identify owners of digital currencies. I’m quite sure that further steps will be taken to regulate this market.

 

How do you see the prospect of central bank digital currencies?

 

This is an area where central banks tread with great caution, because different jurisdictions face different trends in the demand for cash, and because we have to assess the full impact of any change in the way we operate, both for the citizens of our countries and for the structure of financial intermediation. In that respect, I would make a clear distinction between wholesale and retail applications.

 

Starting with wholesale markets, we see that distributed ledger technology (DLT) has a lot of potential for market infrastructures. All major central banks are looking into it. The Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements, which I chair, published a report on it in February 2017.

 

The ECB has undertaken a pilot project with the Bank of Japan in this area. We concluded that the technology is not yet mature enough to migrate large-value payment systems – in our case, TARGET2 – to a DLT-based infrastructure, but we’ll continue to study it carefully.

 

The question will arise as to whether central banks could at some point provide central bank money to financial market infrastructures in a digital form. We are still in the early stages of that discussion, but it is a relevant one.

 

Is this similar to the real-time gross settlement (RTGS) renewal programme under way in the United Kingdom?

 

Indeed, the Bank of England sees potential benefits from DLT for future RTGS systems, although, like us, it believes that this technology it is not yet sufficiently mature. But we will continue to look into it.

 

As for the retail side, that is, central bank digital currencies replacing banknotes and coins, we are much more prudent. First, there are only a limited number of countries where demand for cash is clearly on a downward trend.

 

Sweden is faced with such a situation, but in the euro area we are not. We are therefore not being pushed to go in that direction.

 

Second, we also have to consider the implications for security and trust in the currency. Today, we invest a lot of resources in fighting the counterfeiting of banknotes. What would fraud, and fraud combat, look like in an environment with a digital currency?

 

And third, we want to make sure that we fully understand the long-term consequences for the financial system. Today, most of the money used in the economy is created by banks. How would digital money affect the role of banks as financial intermediaries, and would it make the financial system more, or less, stable? These are issues on which much more reflection is required, hence our great caution.

 

How does the ECB’s new TARGET instant payment settlement (TIPS) initiative factor into this?

 

This is actually my last point. A lot of the current interest in central bank digital currencies, or private digital currencies, stems from the fact that people expect them to be faster and cheaper than existing means of payment. These expectations can be easily met by upgrading existing payment systems.

 

That’s true for domestic payments, and it is exactly what we’re doing in Europe with TIPS, an infrastructure allowing for 24/7, 365-day instant payments. TIPS will go live in November 2018.

 

It’s also true for cross-border payments. But here we are less advanced. One reason why Bitcoin is popular is because it allows for cross-border payments that are cheaper and faster than with existing infrastructures. The international community has a duty to get together and act to improve the speed and cost of cross-border payments, to avoid being taken over by technologies such as Bitcoin, which entail risks for their users, not to mention possible fraud and crime.

 

In China, private sector non-banks are also becoming disruptive players in the payment space.

 

In Europe, we have a new legal framework for payments entering into force in January 2018, called the Second Payment Services Directive (PSD2).

 

Under this revised framework, payment service providers (PSPs) can be non-banks and will have access to the bank accounts of their customers, but at the same time they will be regulated, not only in terms of financial stability but also in terms of data use and privacy. Opening up the payments market is good for consumers and it will spur innovation, but it should not come at the expense of privacy and security.

 

How do you see technology and tech firms’ impact on banks and the financial structure?

 

In a nutshell, fintech creates opportunities for non-bank actors to become players in the financial services sector. It has the potential to significantly destabilise the banking system or at least to erode its profitability.

 

Bear in mind that PSD2 is designed to introduce more competition by requiring banks to share data that they today use to cross-sell financial services. With access to such data, fintech companies could for instance increasingly capture the value formerly retained by banks.

 

I see two broad scenarios. In the first one, banks rise to the challenge, cut costs, internalise new technology, including by purchasing fintech companies, and gain new sources of revenue. This scenario crucially assumes that banks are profitable enough to carry out the necessary technological investments.

 

In the other scenario, banks fail to internalise fintech and run the risk of becoming mere platforms, with all the value being created outside. This could happen in particular if digital giants, who already have access to large amounts of customer data, start targeting parts of the banking value chain, ultimately crowding banks out of large swathe of financial services.

 

Firms and households may then benefit from new financial services and products, but the stability of the banking system would be at stake, and regulation would need to be carefully reviewed to close any loopholes.

 

What role can central banks or regulators play in this?

 

We need to stick to a very simple principle: equivalent activities should be regulated in an equivalent way. For instance, if we see non-bank players starting to provide credit, they will need to be regulated in an equivalent way, although not necessarily the same way, giving different deposit-taking restrictions.

 

And since all these activities are cross-border, we need international coordination. The right forum for this discussion is the Financial Stability Board, where Chinese authorities are active participants.

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Euro area unemployment at 8.7% in November. EU28 at 7.3%

The euro area (EA19) seasonally-adjusted unemployment rate was 8.7% in November 2017, down from 8.8% in October 2017 and from 9.8% in November 2016. This is the lowest rate recorded in the euro area since January 2009. The EU28 unemployment rate was 7.3% in November 2017, down from 7.4% in October 2017 and from 8.3% in November 2016. This is the lowest rate recorded in the EU28 since October 2008.

Eurostat estimates that 18.116 million men and women in the EU28, of whom 14.263 million in the euro area, were unemployed in November 2017. Compared with October 2017, the number of persons unemployed decreased by 155 000 in the EU28 and by 107 000 in the euro area. Compared with November 2016, unemployment fell by 2.133 million in the EU28 and by 1.561 million in the euro area.

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Eurojust press release: At 21:25 tonight, Tuesday 9 January, AVRO-TROS (NPO 1) will broadcast a programme, Opgelicht!

 

At 21:25 tonight, Tuesday 9 January, AVRO-TROS (NPO 1) will broadcast a programme, Opgelicht?! (in Dutch), focusing on cybercrime and highlighting the activities of organised crime groups in phishing and other fraudulent financial transactions, including money mules and the theft of bank cards.

The roles of Eurojust and EC3 in combatting cybercrime, and the investigative work of two cybercrime prosecutors, Renske Mackor (currently an Assistant to the Dutch National Member at Eurojust) and Koen Hermans (formerly an Assistant to the Dutch National Member at Eurojust), are demonstrated.

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Jumbos are estimated to have carried more than 3.5 billion passengers since 1970 till to date

 

Delta, the world’s second largest airline, sent its final 747 to an Arizona “boneyard” this week, marking another chapter in the slow death of the jumbo jet.

Last month United, Delta’s US rival, waved goodbye to its final 747 with a farewell flight from San Francisco to Honolulu (recreating the route of its first 747 service in 1970).

Not one US passenger carrier now flies the iconic Boeing aircraft, which – after almost 50 years of tireless service.

Even it’s biggest customer, British Airways, is phasing it out of its fleet. It currently has 36 jumbo jets, but a further 34 have already been placed in storage and it has said the model will be gone from its hangars by 2024.

Demand for the 747, which has been tweaked and upgraded many times since its first flight in 1969, has dried up. No new orders were received last year and it is expected that Boeing will be forced to call time on the jumbo jet before long.

Since 1969 Boeing has produced more than 1,500 747s. But around two-thirds of these have now been scrapped, written off, or placed in storage at one of the world’s aircraft graveyards.

That leaves 512 still “more or less active”

Besides BA, the biggest users of the 747 include a clutch of venerable carriers. KLM, the world’s oldest airline, has 17, but that number is falling fast. Last month we reported on the final flight of one of its jumbos, registration PH-BFR.

Lufthansa, founded in 1953, has 32, Cathay Pacific, which dates back to 1946, has 20, and Qantas, formed in 1920, has 9. Newer airlines still operating the 747 include Virgin Atlantic (8), Singapore Airlines (7) and Qatar Airways (2).

However, some of the above, such as Singapore and Cathay Pacific, only use the jumbo for cargo flights rather than passenger services.

Beyond that it’s largely the preserve of cargo-only airlines and obscure carriers from far-flung corners of the globe. Of the former, Cargolux, from Luxembourg, has 23, Atlas Air, UPS, Kalitta Air and Polar Air Cargo, all based in the US, have 30, 18, 17 and 13, respectively. Air Bridge Cargo, headquartered in Moscow, has 15.

They are also used by a couple of militaries, namely the US Air Force and the Iran Air Force, while they also seem to be popular with Middle Eastern rulers – Bahrain Royal Flight has three, the State of Kuwait has one, and one is owned by the estate of Prince Sultan Bin Abdulaziz, the Saudi Crown Prince who died in 2011.

Where’s the first 747?

The first 747 flight took place in February 1969, with test pilots Jack Waddell and Brien Wygle at the controls, and ushered in a new era of air travel when it took off – it was twice the size of its nearest competitor. The aircraft, RA001, can be seen at Seattle’s Boeing Museum of Flight.

The 747's long career has seen it fly billions of miles, carrying billions of passengers, but it also had its share of tragedies.

In 1977, a pair of 747s (one KLM, one Pan Am) crashed into each other on the runway at Tenerife’s airport, by a faulty decision from KLM’s captain.

In 1983, the USSR shot down a Korean Air Lines 747 after mistaking it for a US spy plane. Terrorist bombs destroyed two 747s mid-flight—an Air India 747 in 1985 and a Pan Am 747 in 1988—and several more had been hijacked in the 1970s.

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Aldi and Lidl outpace the Big Four in UK expansion race

 

The pair are pressing ahead with ambitious growth plans here in the UK, with a combined total of 128 planning applications having been submitted for new stores in 2017.

The Big Four supermarkets are lagging behind in the battle for UK expansion as discount retailer Aldi and Lidl continue to dominate the running.

The pair are pressing ahead with ambitious growth plans here in the UK, with a combined total of 128 planning applications having been submitted for new stores in 2017.

According to data form the industry analysts Barbour ABI, Lidl submitted 68 planning applications for new stores last year and Aldi closely following with 60.

The traditional Big Four lagged behind with a total of 20 planning applications – eight for Tesco, seven for Sainsbury’s, four for Morrison’s and one for Asda. Property cost issues and an excess of floor space from larger stores has reportedly contributed to the scaling back from the four.

The applications submitted are predominantly for smaller convenience stores, looking to tap into the growing consumer habit of more frequent trips to local, convenient stores.

While the Big Four have seen little growth in its shop floorspace over recent years, 2017 was a year of scaling back for Aldi and Lidl, in comparison to its space hungry years, like 2015, where it submitted a total of 205 planning applications for new stores.

Michael Dall, lead economist at Barbour ABI, said: “The discount retailers continue to dominate the supermarket space race even if they are not as active as 2015, which saw them commit to rapid expansion.

“Their appetite for investment matches their highly ambitious growth plans as they continue to challenge the established order in the supermarket sector.”

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Lenta opens thirteen new supermarkets across Russia

St. Petersburg, Russia – Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the opening of its thirteen new supermarkets in Moscow, Saint-Petersburg, Novosibirsk and Tula.

Eight of new supermarkets are opened in different districts of Novosibirsk. A broad assortment of products from 3,900 to 7,800 SKUs that has been selected specifically for residents of Novosibirsk and includes federal product ranges alongside local produce. Seven out of eight properties are owned by Lenta. The openings bring the number of Lenta supermarkets in the city to 15.

Three new supermarkets are opened in Moscow. Stores are located in Odintsovo at 1A Mozhayskoe highway, in Selyatio, Narofominsk district at 10A Bolnichnaya street and in Moscow at 6, Angelov lane. Supermarkets offer a product assortment from 3,900 to 7,800 SKUs. The stores have 20-50 parking spaces and 6-8 cash registers. These openings bring the number of Lenta supermarkets in Moscow to 44. Two out of three properties are leased by Lenta.

The first Lenta supermarket opened in Tula at 8 Frunze street. The store has a total area of 1,362 sq.m with 702 sq.m of selling space. It has 6 cash registers and offer a product assortment of 5,500 SKUs. The property is leased by Lenta.

Lenta also opened its twenty fifth supermarket in Saint Petersburg at 71 Zanevsky prospect in Zanevskiy Kaskad shopping mall. The store has a total area of 1,564 sq.m with 1,026 sq.m. It has 6 cash registers and offer a product assortment of 7,800 SKUs. The property is leased by Lenta.

All new stores are open from 8 am to 11 pm, seven days a week.

As a result of these openings Lenta has met 2017 store opening guidance of about 40 new hypermarkets and 50 new supermarkets. The new openings brought the number of stores to 230 hypermarkets in 83 cities across Russia and 98 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region.

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Joules Christmas retail sales up

 

Joules reports a strong performance over the Christmas period with total retail sales up 19.2% on last year. It said this was driven by continued growth across both the store and E-commerce channels. It said retail gross margin over seven week period to 7 Jan was expected to be in line with the prior year as it maintained its disciplined and selective approach to promotional activity. Chief executive Colin Porter said: "The group's retail performance through the Christmas trading period is testament to the strength of the Joules brand, unique product proposition and customer engagement. 'Both stores and e-commerce channels delivered good growth with the increasing awareness and popularity of the brand." Joules will announce its results for the 26-week period ended 26 Nov on 31 Jan.

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RAYTHEON AWARDED CONTRACT WORTH MORE THAN $1.5 BILLION FOR ADDITIONAL PATRIOT™ INTEGRATED AIR AND MISSILE DEFENSE CAPABILITY

Undisclosed nation deepens investment in Patriot

An undisclosed member of the 14-nation group that own the combat-proven Patriot Integrated Air and Missile Defense System has awarded Raytheon Company (NYSE: RTN) a direct commercial sales contract worth more than $1.5 billion for additional capability. The contract was awarded on Jan 4, 2018.

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London: Morrisons posts jump in Christmas sales

Morrison W. Supermarkets posted strong sales in final months of the year and enjoyed a particularly strong Christmas trading period. Total sales for the 10 weeks to January 7 grew by 2.8% including fuel and 2.6% excluding fuel. Like-for-like sales over the period grew by 3.0% including fuel and 2.8% excluding fuel. Morrisons said sales were especially strong over the Christmas and New Year period with like-for-like sales growth of 3.7% for the six weeks to January 7. "More and more customers found more things they wanted to buy at competitive prices at Morrisons this Christmas," chief executive David Potts said. The company said its full-year expectations were unchanged.

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