News

Apple: nude photos leak not linked to systems breach

USA Today - 1 hour 20 min ago
Apple says 40 hours of investigation found no breach of iCloud or Find my iPhone systems.        
Categories: News

Susan Lyne Leaving Brand Role at AOL to Head Up Women-focused Venture Fund

AOL 's Brand Group CEO Susan Lyne is stepping down from that role to lead a new AOL investment fund aimed at helping female-driven startups, AOL said.
Ms. Lyne’s move follows a gradual paring-down of her role from when she joined the company in March of 2013, as AOL itself shifted strategy to focus more on advertising technology. When hired, a key focus for Ms. Lyne–who has experience in the broadcast TV development world–was supposed to be programming, including Web video. But Ran Harnevo, AOL’s head of video, now largely oversees AOL’s video programming efforts and was the face of AOL’s NewFront presentation to advertisers earlier this year. Another responsibility when Ms. Lyne was hired was for the AOL.com home page. Last October Maureen Sullivan, head of AOL’s lifestyle brands, took over those duties. Going forward, Ms. Sullivan will split Ms. Lyne’s former responsibilities with Luke Beatty, AOL Brand Group Head of Product. Mr. Armstrong originally called Ms. Lyne a “game changing player.” It seems the game changed radically over the past 18 months or so, as AOL leaned hard into programmatic advertising and Mr. Armstrong focused on building the company into a platform for other online advertisers, as much as a media company onto itself. “This is a company that is still reinventing what it is going to be over the next decade,” said Ms. Lyne in an interview on Tuesday. “Tim has done an amazing job. And certain parts of the company, like programmatic, are showing extremely high growth. The content part of the business is great. it’s just not as fast growing. I don’t have any argument with where resourcing is going. If I were in Tim’s shoes I’d be investing there.” News of Ms. Lyne’s departure was first reported by Recode. Ms. Lyne outlined what she saw as successes in her job, including paring down the number of brands AOL manages, and the growth the company has seen of late in terms of its mobile audiences. “We’ve got an extremely strong premium brand,” said Ms. Lyne. “We did a lot of good stuff during my time here. There are things that I think we did that were incredibly positive. I may have had more ideas about what I could do but I’m happy. Because of my background in television, a lot of people thought I was going to be pushing more programming, but I understood the job I was coming into. We weren’t going to go into the Netflix business.” In her new job, still part of the AOL orbit, Ms. Lyne will focus on finding the next great technology business backed by a woman, an area she sees as being severely under-served considering women’s broad usage of social media. She’ll be armed with a $10 million investment fund, said people familiar with the matter.  
Categories: News

SEC charges Houston adviser with not disclosing fund payments

Reuters - 1 hour 24 min ago
(Reuters) - A Houston-based investment advisory firm steered clients to certain mutual funds without disclosing that it was receiving payments from the broker who offered those funds, the U.S. Securities and Exchange Commission alleged in a civil fraud complaint on Tuesday.
Categories: News

BP asks court to remove claims administrator in Gulf spill case

Reuters - 1 hour 27 min ago
HOUSTON (Reuters) - BP Plc asked a U.S. court on Tuesday to fire the court-appointed lawyer tasked with paying out compensation to people affected by the 2010 Gulf of Mexico oil spill, saying the lawyer had not disclosed an alleged conflict of interest before taking the job.
Categories: News

Credit Suisse says investigating allegations of employee misconduct

Reuters - 1 hour 28 min ago
LONDON Sep 2 (Reuters) - Credit Suisse said it was investigating allegations of trader misconduct reported in The Wall Street Journal on Tuesday.
Categories: News

DOT rejects, for now, Norwegian airline amid dispute

USA Today - 1 hour 28 min ago
DOT rejects, for now, proposal by low-cost carrier to fly to U.S.        
Categories: News

Hope you didn't own these stocks in August

USA Today - 1 hour 31 min ago
August was a great month to own stocks -- just not one of these stocks        
Categories: News

Transportation Department rejects exemption for low-cost air carrier to fly between US, Europe

Fox Business - 1 hour 38 min ago
The Obama administration has rejected a request by a low-cost air carrier to begin flying immediately between the U.S. and Europe in a case that has significant labor and trade policy implications.
Categories: News

Is Taxation a Migration Driver?

huffingtonpost.ca - 1 hour 40 min ago
Taxation has always been a way for governments to raise revenue in order to finance their expenses. In an increasingly globalized and interconnected world, tax policies can have important implications on the migration patterns of individuals and companies. Favourable tax policies, which include competitive tax rates, would attract wealthy individuals and overseas companies to move to a country. Again, unfavourable tax policies that include uncompetitive tax rates may induce wealthy individuals and domestic companies to leave a country.

The recent merger of Burger King and Tim Hortons shows how tax policies may affect the movement of companies. Burger King would relocate its headquarters to Canada where it would pay lower corporate tax rates compared to the U.S. While the corporate tax rate is 35 per cent in the U.S., the federal tax rate is only 15 per cent in Canada. The federal government in Canada wants the provincial tax rates to decrease to 10 per cent, yielding a combined tax rate of 25 per cent. Compared to the 35 per cent corporate tax rate in the U.S. which is the highest among OECD countries, the corporate tax rate in Canada is very competitive prompting Burger King to move its headquarters north of the border.

Again, unlike the U.S., Canada does not tax dividends that have already been taxed in other tax jurisdictions. This may also have prompted Burger King to relocate its headquarters to Canada. When a company pays less in taxes, it would have higher level of profits and, consequently, higher rates of return for its shareholders. The relocation may lead to a loss of tax revenue and employment in the U.S. and a gain of tax revenue and employment in Canada. This indicates how tax policies of two countries may induce companies to migrate from one to the other, having important implications on the tax revenues and employment scenarios of both countries.

The decision of the French government to impose 75 per cent tax on income over 1 million euros ($1.4 million) per year have led the rich to explore migrating to countries which are 'wealth-friendly' like the U.K. or Switzerland. The U.K. and Switzerland have competitive income tax rates for the wealthy which attract wealthy individuals and companies from other countries. The 75 per cent 'millionaire's tax' may lead to an outmigration of wealthy individuals and companies from France to other tax jurisdictions that offer lower income and corporate tax rates. This shows the dilemma that national governments encounter when they impose taxes that are higher than other tax jurisdictions.

The tax policies and competitive tax rates in the U.K. certainly help to attract the super-rich from countries all over the world. The U.K. is home to numerous millionaires and billionaires from other countries who have been attracted not only by its stability but also by its competitive income tax rates. Again, favourable corporate tax rates have attracted many financial institutions to set up headquarters and major offices in the U.K.

The same trend is observed in Singapore which has been a magnet for ultra-rich individuals and companies. Competitive tax rates have incentivized many companies and very rich people to set up residence in Singapore. Also, the country does not have capital gains tax which always makes it very attractive for companies and individuals to be based in Singapore. Hong Kong is also a tax jurisdiction that has very competitive tax rates and zero capital gains tax. This has attracted many wealthy individuals to live and work there. However, expatriates have to pay taxes to their countries of citizenship. For some countries, the tax liability would be on the world-wide income of the individual which may be substantial for wealthy individuals. The tax obligations may sometimes induce individuals as well as companies to renounce citizenship of one country and start residence in a tax haven that often offers zero tax rates. This again indicates how tax policies may have impact on migration patterns and citizenship status of wealthy individuals.

According to an UNCTAD report, "Review of Maritime Transport 2013," the five largest fleets by flags of registration and deadweight tonnage accounted for more than half of world total deadweight tonnage in January 2013. The top five flags of registration were Panama (21.5 per cent), Liberia (12.2 per cent), the Marshall Islands (8.6 per cent), Hong Kong, China (8 per cent) and Singapore (5.5 per cent). All these flags of registration are tax havens that offer zero tax rates. Even though the ships are owned by companies of other countries, they fly the flags of these tax havens to take advantage of extremely favorable tax rates.

The different tax policies and tax rates have induced the companies to fly different flags relative to their countries of ownership. The same trend is observed in Ireland. Its status as a tax haven has attracted numerous companies to register there and take advantage of tax loopholes and lower tax rates. Therefore, whether it is ships or companies, tax policies and tax rates have significant impacts on their registration and mode of operation.

U.S. companies have US$2 trillion of profit kept and invested outside the U.S., including in tax havens. The U.S. has a policy of taxing profits of companies that were made overseas. So, if a U.S. company made profits in its overseas operations and paid taxes in that tax jurisdiction, its profits would be liable to U.S. taxes if the profits are remitted back to the U.S. The profits would be subject to double taxation, once in the overseas tax jurisdiction and again in the U.S. once it enters U.S. soil.

In the U.S., the tax liability would be the difference between the 35 per cent corporate tax rate and the tax rate in the overseas tax jurisdiction. However, if the U.S. company does not repatriate the profits to the U.S. and reinvests it outside the U.S., the profits would not be liable to U.S. taxation. This could explain the motivation for U.S. companies to keep their overseas profits outside the U.S. However, if the U.S. companies repatriated the profits, it would lead to employment generation and economic growth in the U.S.. The U.S. tax policy that taxes worldwide income of U.S. companies may lead to this behavior of U.S. companies.

However, if the U.S. tax policy shifts to territorial method of taxation where a company pays taxes only on income earned within that country, this could lead to US companies repatriating their profits to the U.S. Most OECD countries practice the territorial system of taxation and tax profits made overseas at a very low rate. This indicates how tax policies of a country may influence its companies' decisions to repatriate profits or not, which in turn affect employment generation and economic growth in the country.

A study titled, "Tax Flight is a Myth: Higher State Taxes Bring More Revenue, Not More Taxation" by Robert Tannenwald, Jon Shure and Nicholas Johnson found that interstate migration in the U.S. is not significantly influenced by income tax increases in a state. However, tax rates and tax policies do influence international migration of wealthy individuals and companies. It must be mentioned that taxation is not the only reason that wealthy individuals and companies migrate. For wealthy individuals, the other reasons may be access to better education, employment opportunities, law and order condition, and environment. Also, political and economic stability may attract wealthy individuals to any given country. For companies, the attractions may include skilled labor force, competitive wage rates, large customer base, and political and economic stability. However, given comparable socio-economic factors, tax policies and tax rates may motivate wealthy individuals and companies to migrate from one location to another.

A possible solution to the problem of migration of wealthy individuals and companies would be to introduce similar tax policies and tax rates in all countries. However, it would be quite impossible to achieve it as every country would want to have more wealthy people and companies migrating to it. Any country would want to have competitive tax rates and favorable tax policies that would dissuade wealthy citizens and home companies from out-migrating while attracting wealthy foreigners and foreign companies. This would be beneficial for employment generation, tax revenue and economic growth of the country. However, this competition for wealthy individuals and companies may lead to tax wars among countries and a race to the bottom. Lower tax rates may very well lead to lower government revenues and insufficient resources to fund investments in infrastructure, education, law enforcement, healthcare, etc. Therefore, countries have to be careful that they do not engage in tax wars that may be harmful for them in the long run. Overall, tax policies and tax rates do influence migration patterns of wealthy individuals and companies.
Categories: News

Apple acknowledges some celebrity info compromised

philly.com - 1 hour 41 min ago
SAN FRANCISCO (AP) - Apple is acknowledging that computer hackers broke into the accounts of several celebrities to steal personal photos that have been posted online, a security breakdown that the iPhone maker blamed on the intruders' ability to figure out passwords and bypass other safeguards.
Categories: News

Ask Matt: Dunkin' Donuts hits L.A.

USA Today - 1 hour 43 min ago
Dunkin' Donuts is kicking powdered sugar in Starbucks' face. Which is the better investment        
Categories: News

Resolute Forest Products closing Laurentide paper mill in Shawinigan, Que.

huffingtonpost.ca - 1 hour 43 min ago
MONTREAL - Resolute Forest Products says competition from a government-subsidized mill in Nova Scotia, higher operating costs and falling demand have forced the closure of its Laurentide paper mill in Shawinigan, Que., affecting 275 workers.The Montreal-based pulp, paper and lumber producer told workers Tuesday that the facility that makes commercial paper will close about mid-October."We made every effort to find a way to improve the Laurentide mill's performance. Unfortunately, due to its cost structure and challenging market conditions, there is no economically viable option for the mill," stated CEO Richard Garneau.While demand for specialty papers has decreased nearly 25 per cent since 2009, Resolute has faced the restart of Pacific West Corp.'s mill in Port Hawkesbury, N.S., that produces 360,000 tonnes of paper. That's nearly double Laurentide's capacity of 191,000 tonnes.Pacific West paid $33 million for the paper mill and it reopened the end of 2012 with $124.5 million in provincial assistance during the next 10 years.A Resolute(TSX:RFP) spokesman said there was little workers in Shawinigan could do to prevent the mill's closure."We've worked on making our organization as lean as possible ... (but) it's very difficult for even any type of concessions locally to make a difference. You're talking about extreme circumstances," he said in an interview.He added that Quebec has high fibre costs and the mill is 126 years old.The company laid off 111 employees in late 2012 after it permanently shut down a paper machine at the plant following a drop in demand.Some affected paper workers could relocate to fill vacancies in other mills. Resolute also hopes to open a third shift at its sawmill in La Tuque that would add about 36 additional jobs, if it can secure adequate lumber.Paul Quinn of RBC Capital Markets said that although the closure of Laurentide wasn't expected it isn't surprising given the oversupply of specialty paper."I keep expecting them to shut down more capacity. I hadn't heard it was imminent, but you've got demand declines so obviously somebody's got to take out something," he said from Vancouver.Resolute Forest, formerly known as AbitibiBowater, produces newsprint, commercial printing papers, market pulp and wood products.The company owns or operates nearly 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea as well as power generation assets in Canada. It employs some 8,500 workers and generates $4.5 billion in annual sales.Follow @RossMarowits on Twitter
Categories: News

Delamaide: Cantor's Wall St. job raises concern

USA Today - 1 hour 50 min ago
When does the revolving door between politics and Wall Street start to bother you?        
Categories: News

Fire fountains, huge steam plumes rise from Iceland lava eruption, though no ash cloud yet

canada.com - 1 hour 50 min ago
A massive white cloud some 4.5 kilometres tall was rising above the fissure eruption in the Holuhraun lava field north of the Dyngjujoekull glacier on Tuesday
Categories: News

PG&E fined $1.4 billion for San Bruno pipeline blast

USA Today - 1 hour 51 min ago
Fine for gas explosion is largest safety-related penalty imposed by Calif. regulator        
Categories: News

How Immigrants Can Lay Down Canadian Credit Roots

huffingtonpost.ca - 1 hour 52 min ago
Canada is a country that is proud of its multiculturalism. It was built on the backs of immigrants -- some who arrived a century ago, and some who arrived last year. People come to Canada with hopes and dreams of a better life full of financial prosperity -- but sometimes it can be hard to get there.

Financial systems vary from country to country and a huge obstacle facing new Canadians is that many of them simply don't understand how finances work in the Great White North. Last year, an RBC Poll showed that 60 per cent of new Canadians felt they lacked financial knowledge, including how to establish and build credit during their first year living in Canada.

If you don't know the rules to the game, how can you participate?

First off, you need to act right away. When you arrive in Canada for the first time, it almost feels as if someone shook your credit Etch-a-Sketch and left it blank. The credit history that you built back home has little-to-no bearing here -- for all intents and purposes, you're starting over. This will create problems for you; it'll be difficult to rent an apartment and you might need to put down large deposits for home services such as electricity/hydro and telephone.

Here are some tips to help establish your credit history in your new home:

• Get a secured credit card -- Without credit history in Canada, the easiest type of credit card to receive is a "secured" card. Secured credit cards generally require a cash deposit as collateral, and the value of the deposit typically equals your credit limit. The limits are usually low, but they can increase as you build your credit score. Don't confuse these with prepaid cards -- they won't help you build your score.

• Shop around -- Though secured cards are common for new Canadians, some banks try to woo new customers by offering special packages for immigrants, including a low-limit unsecured credit card. The banks overlook a lack of credit history because the low limit is a low risk for them, and they could gain a customer for life. Shop around and see which banks offer the best deals for new Canadians.

• Get a retail credit card -- If you're having trouble getting attention from the banks, try getting a card from a non-financial institution such as a department store or gasoline company. This will allow you to buy products but not borrow money. Diligently paying off your bills will help you build credit and also avoid the interest fees, which are typically higher than bank cards.

• Understand your credit rating -- You might be surprised, but many Canadians don't know what goes into their credit ranking. Here are the factors that make up your credit score, and how they are weighted: Payment history (35 per cent); Amounts you owe (30 per cent); Length of credit history (15 per cent); New credit (10 per cent); and Type of credit in use (10 per cent). As you can see, the length of credit history, which is out of your control, is small compared to all the things that you can control, such as payments and amounts owing.

With a firm understanding of Canada's financial system, new Canadians can have a fair shot at enjoying the prosperity they deserve. Do your homework, get started right away, and soon you'll be well on your way to laying down your financial roots in your new home.

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Categories: News

Aston Martin may lose U.S. dealers without safety exemption

Reuters - 1 hour 53 min ago
DETROIT (Reuters) - U.S. Aston Martin dealers say they are in danger of closing if federal regulators refuse to give them an exemption to safety rules that would allow them to keep selling all four models the British luxury sports car maker produces.
Categories: News

Infiniti stretches Q70 as China market influences U.S.

USA Today - 1 hour 56 min ago
Easy for automakers to sell U.S. long-wheelbase cars already being sold in China        
Categories: News

McDonald's Boosts Oversight of Chinese Suppliers

Fox Business - 1 hour 57 min ago
McDonald's said it will monitor its suppliers in China more closely after a food-safety scandal in the country hurt the hamburger chain's sales and reputation.
Categories: News

Fred Brumwell wanted a Google job so badly, he rented a billboard

cbc.ca - 2 hours 2 min ago
Fred Brumwell really wants to work for Google, so he rented a billboard near Google's offices in Kitchener, Ont., to get the company's attention.
Categories: News

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