Nokia combines forces with Microsoft in smartphones (source: Financieel Dagblad (Dutch Financial Newspaper))
Nokia is battling together with Microsoft to stand up to the murderous competition of Apple’s iPhone and the smartphones of HTC and Samsung with their Android operating system.
From now on he smartphones of the Finnish company are provided with Windows Phone, the operating system of Microsoft. Nokia’s CEO Stephen Elop – originating from Microsoft – announced a “large strategic agreement” during a strategic and financial update for the company. Both companies will combined develop mobile communication products.
Future IASB chairman Hans Hoogervorst attacks the
committee for the Banking Industry (source: Financieel Dagblad (Dutch)) Basel
Hans Hoogervorst, acting in his role as future chairman of the IASB (International Accounting Standards Board: the organisation responsible for the international accounting rules), attacked the banking supervisors, united in the
Committee. In a speech in Basel Brusselshe stated that “making the financial industry safer is not a task of the IASB, but of the Committee” Basel
Hoogervorst – currently chairman of the Dutch Authority Financial Markets – reacted to an ongoing discussion between banking supervisors and the authors of Accounting Rules.
Banking supervisors remarked more than once that the international Accounting Rules (IFRS), put together by the IASB, worked incorrecty during the crisis. In good times the figures were too optimistic, but during the crisis the banks were forced to show extreme write-offs.
In his speech Hoogervorst called transparency and openness the most important factors:
“Transparency is not something that a sector, as vulnerable as the banking industry, comes up with spontaneously. Supervisors in the past could use secrecy to solve problems within banks, but I doubt whether this will work in the 21st century”
According to Hoogervorst, transparency is the foundation for the banking industry and supervisors should finish the job with sturdy capital requirements and serious stresstests. “We should respect eachothers responsibilities”He criticized the stresstests the supervisors executed during the summer: Almost all banks passed the tests, partly due to the assumption in these tests that investments in European sovereign bonds are always redeemed for the full 100%.“How discerning can an auditor be, when he sees that supervisors consider sovereign bonds riskless, when these bonds are already under heavy pressure in the capital market”.
The banking supervisors have for quite a while asked the IASB for an accounting rule that allows banks to build up a reserve for defaults and non-payments in economic good times and that prevents the credit supply to swing up-and-down with the market. Recently an agreement was reached in this matter, but Hoogervorst warned that this model is only credible when banks write-off credit losses in time.
Some pertinent snips:
indeed will pay-off prematurely, depends on the market conditions next week, according to the Portuguese debt agency[…] Portugal
The possible premature pay-off causes mixed feelings on the financial Markets. Filipe Silva, bond manager of Banco Carregosa is satisfied:“ It seems that
wants to manage its debt efficiently and will use the fact that many investors wants to sell their bonds […]” Portugal
Analyst Chris Scicluna of Daiwa Capital Markets is more sceptical against Bloomberg: “
hopes that the premature pay-off clears the way for the large bulk of refinances that awaits the country later on this year” Portugal