Gold Fix Study Shows Signs of Decade of Bank Manipulation
March 1st, 2014Via: Bloomberg:
The London gold fix, the benchmark used by miners, jewelers and central banks to value the metal, may have been manipulated for a decade by the banks setting it, researchers say.
Unusual trading patterns around 3 p.m. in London, when the so-called afternoon fix is set on a private conference call between five of the biggest gold dealers, are a sign of collusive behavior and should be investigated, New York University’s Stern School of Business Professor Rosa Abrantes-Metz and Albert Metz, a managing director at Moody’s Investors Service, wrote in a draft research paper.
“The structure of the benchmark is certainly conducive to collusion and manipulation, and the empirical data are consistent with price artificiality,” they say in the report, which hasn’t yet been submitted for publication. “It is likely that co-operation between participants may be occurring.”
The paper is the first to raise the possibility that the five banks overseeing the century-old rate — Barclays Plc, Deutsche Bank AG (DBK), Bank of Nova Scotia (BNS), HSBC Holdings Plc (HSBA) and Societe Generale SA (GLE) — may have been actively working together to manipulate the benchmark. It also adds to pressure on the firms to overhaul the way the rate is calculated. Authorities around the world, already investigating the manipulation of benchmarks from interest rates to foreign exchange, are examining the $20 trillion gold market for signs of wrongdoing.
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Bloomberg News reported in November concerns among traders and economists that the fixing banks and their clients had an unfair advantage because information gleaned from the calls provided an insight into the future direction of prices and banks can bet on spot and derivatives markets during the call.
Abrantes-Metz and Metz screened intraday trading in the spot gold market from 2001 to 2013 for sudden, unexplained moves that may indicate illegal behavior. From 2004, they observed frequent spikes in spot gold prices during the afternoon call. The moves weren’t replicated during the morning call and hadn’t happened before 2004, they found.
Large price moves during the afternoon call were also overwhelmingly in the same direction: down. On days when the authors identified large price moves during the fix, they were downwards at least two-thirds of the time in six different years between 2004 and 2013. In 2010, large moves during the fix were negative 92 percent of the time, the authors found.
There’s no obvious explanation as to why the patterns began in 2004, why they were more prevalent in the afternoon fixing, and why price moves tended to be downwards, Abrantes-Metz said in a telephone interview this week.
Autonomous Drones Flock Like Birds
March 1st, 2014Via: Nature:
A Hungarian team has created the first drones that can fly as a coordinated flock. The researchers watched as the ten autonomous robots took to the air in a field outside Budapest, zipping through the open sky, flying in formation or even following a leader, all without any central control.
The aircraft, called quadcopters because they have four rotors, navigate using signals from Global Positioning System (GPS) receivers, communicate their positions to one another via radio and compute their own flight plans. They were created by a team of scientists led by Tamás Vicsek, a physicist at Eötvös Loránd University in Budapest.
“This is remarkable work,” says Iain Couzin, who studies collective animal behaviour at Princeton University in New Jersey. “It is the first outdoor demonstration of how biologically inspired rules can be used to create resilient yet dynamic flocks. [It suggests] we will be able to achieve large, coordinated robot flocks much sooner than many would have anticipated.”
Ukraine to Ask for UN Security Council Session
February 28th, 2014Via: CBC:
Ukraine’s Parliament has asked the United Nations Security Council to address the country’s political turmoil.
Lawmakers on Friday adopted a resolution calling for a security council session amid growing tensions as pro-Russian gunmen asserted control over airports in the southern Crimea region.
The resolution also called on Russia to halt steps which it says are aimed against Ukraine’s sovereignty and territorial integrity.
Russian military units were blocking an airport in the Black Sea port of Sevastopol in Crimea near the Russian naval base while unidentified men were patrolling another airport serving the regional capital, Ukraine’s new interior minister said Friday.
Arsen Avakov said in a Facebook post that the Belbek international airport in Sevastopol is blocked by military units of the Russian navy.
“I can only describe this as a military invasion and occupation,” Avakov said.
The Russian foreign ministry refused to comment while a spokesman for the Russian defence ministry also had no comment.
Yahoo Webcam Images from Millions of Users Intercepted by GCHQ
February 27th, 2014Via: Guardian:
Britain’s surveillance agency GCHQ, with aid from the US National Security Agency, intercepted and stored the webcam images of millions of internet users not suspected of wrongdoing, secret documents reveal.
GCHQ files dating between 2008 and 2010 explicitly state that a surveillance program codenamed Optic Nerve collected still images of Yahoo webcam chats in bulk and saved them to agency databases, regardless of whether individual users were an intelligence target or not.
In one six-month period in 2008 alone, the agency collected webcam imagery – including substantial quantities of sexually explicit communications – from more than 1.8 million Yahoo user accounts globally.
Blood Pressure Pills ‘Raise Risk of Fatal Fall’
February 27th, 2014Warning: Nothing that appears on Cryptogon should be considered medical advice.
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Via: Telegraph:
Millions of older people taking high-blood pressure tablets, like beta-blockers, may be doing themselves more harm than good because the pills increase the risk of fatal falls, scientists have warned.
Yale University has discovered that the risk of dying from a fall when taking tablets rises by 40 per cent over three years – similar to the risk of dying from a heart attack or stroke over the same period.
Over The Last Three Years, Israeli Forces Have Killed Dozens of Palestinian Civilians in the West Bank with “Near Total Impunity”
February 27th, 2014I don’t know why last three years should stand out as a distinct period from the last several decades of Israeli atrocities, but so it goes…
Via: Amnesty International:
Israeli forces have displayed a callous disregard for human life by killing dozens of Palestinian civilians, including children, in the occupied West Bank over the past three years with near total impunity, said Amnesty International in a report published today.
The report, Trigger-happy: Israel’s use of excessive force in the West Bank, describes mounting bloodshed and human rights abuses in the Occupied Palestinian Territories (OPT) as a result of the Israeli forces’ use of unnecessary, arbitrary and brutal force against Palestinians since January 2011.
In all cases examined by Amnesty International, Palestinians killed by Israeli soldiers did not appear to be posing a direct and immediate threat to life. In some, there is evidence that they were victims of wilful killings, which would amount to war crimes.
“The report presents a body of evidence that shows a harrowing pattern of unlawful killings and unwarranted injuries of Palestinian civilians by Israeli forces in the West Bank,” said Philip Luther, Middle East and North Africa Director at Amnesty International.
“The frequency and persistence of arbitrary and abusive force against peaceful protesters in the West Bank by Israeli soldiers and police officers – and the impunity enjoyed by perpetrators – suggests that it is carried out as a matter of policy.”
Armed Men Seize Government HQ, Raise Russian Flag in Ukraine’s Crimea
February 26th, 2014Update: Ukraine Warns Moscow Against Russian Military Movements in Crimea
Via: Reuters:
Ukraine said on Thursday it would regard any movements by Russian military in Crimea outside the Russian Black Sea fleet’s base in Sevastopol as an act of aggression.
Acting President Oleksander Turchinov issued the warning in the national parliament after armed men seized the regional government and parliament buildings in Crimea, where some ethnic Russians want the region to join the Russian Federation.
Turchinov, who is also the head of Ukraine’s armed forces, appealed for Moscow to adhere to the rules of an agreement which allows Russia’s Black Sea fleet to be based in Sevastopol until 2042.
“I am appealing to the military leadership of the Russian Black Sea fleet … Any military movements, the more so if they are with weapons, beyond the boundaries of this territory (the base) will be seen by us as military aggression,” he declared.
The identities of the men in the buildings in the regional capital of Simferopol were not immediately known and they issued no demands.
—End Update—
Via: Reuters:
Armed men seized the regional government headquarters and parliament on Ukraine’s Crimea peninsula on Thursday and raised the Russian flag.
A Reuters correspondent on the scene in the Crimean capital, Simferopol, said the door of the parliament was blockaded from inside by tables and chairs and no one was now able to enter.
Interfax news agency quoted a witness as saying there were about 60 people inside and that they had many weapons. It said no one had been hurt when the buildings were seized in the early hours of Thursday.
Rolls-Royce Drone Ships
February 26th, 2014Via: Bloomberg:
In an age of aerial drones and driver-less cars, Rolls-Royce (RR/) Holdings Plc is designing unmanned cargo ships.
Rolls-Royce’s Blue Ocean development team has set up a virtual-reality prototype at its office in Alesund, Norway, that simulates 360-degree views from a vessel’s bridge. Eventually, the London-based manufacturer of engines and turbines says, captains on dry land will use similar control centers to command hundreds of crewless ships.
Drone ships would be safer, cheaper and less polluting for the $375 billion shipping industry that carries 90 percent of world trade, Rolls-Royce says. They might be deployed in regions such as the Baltic Sea within a decade, while regulatory hurdles and industry and union skepticism about cost and safety will slow global adoption, said Oskar Levander, the company’s vice president of innovation in marine engineering and technology.
“Now the technology is at the level where we can make this happen, and society is moving in this direction,” Levander said by phone last month. “If we want marine to do this, now is the time to move.”
Russian Ships Arrive On Ukraine’s Crimean Coast
February 26th, 2014Via: International Business Times:
According to Russian news site flot.com, Russian military ships carrying soldiers have arrived on Ukraine’s Crimean coast in what some are claiming could be the early signs of a Russian coup in the hotly disputed autonomous region of the Crimea.
Russia’s large landing ship Nikolai Filchenkov has arrived near the Russia Black Sea Fleet’s base at Sevastopol, which Russia has leased from Ukraine since the fall of the Soviet Union in 1991.
Related: Putin Puts Troops in Western Russia on Alert
Exxon CEO Tries to Stop Fracking Near His Land
February 26th, 2014Via: Globe and Mail:
Rex Tillerson’s company may be a big player in fracking, but the chief executive of Exxon Mobil Corp. has a problem with what the related issues could mean to the value of his ranch.
The chief executive officer of Exxon Mobil Corp., a major player where the controversial technique is concerned, is among a group of citizens in Bartonville, near Dallas, who are opposing a massive tower that would supply water for fracking.
Research Credit: almaverdad2


