(Beijing) – Shares of China Unicom slid as much as 3.6% Thursday after an internal investigation at the country’s second largest wireless carrier uncovered a massive scheme to inflate revenue figures over a five year period. 73 employees at the state-run phone giant were disciplined for “widespread falsification” which was considered “systemic” at Unicom’s north-central Shaanxi unit.
Some former top representatives and high officials of Shaanxi Unicom have ignored the law and blindly pursued big growth.
The nature and repercussions of the fraud are unprecedented in Unicom’s history, according to the document –Caixin
The internal investigation revealed that nine out of 10 branches in Shaanxi engaged in organized, cross-departmental falsification of about a third of it’s revenue over a five year period – roughly $261 million USD.
Over a five-year period, Unicom’s Shaanxi unit reported 5 billion yuan ($726 million) in revenue, of which 1.8 billion yuan – or about a third – was faked, the sources said, citing an internal message from CEO Wang Xiaochu
Punishments have ranged from firings to warnings, to deductions from performance pay.
The news comes as Unicom Group prepares to sell shares on the open market in a new offering, as part of a pilot program by the Chinese government to attract public capital into state-owned enterprises in a mixed-ownership structure. While a few billion in irregularities for a company with 300 billion yuan in annual revenue won’t make much of a dent in it’s fundamentals, the fact existence of the widespread fraud makes one wonder about what sorts of schemes haven’t been uncovered.
News of the China Unicom fraud comes months after China’s Liaoning rust-belt province was found to have inflated three years of revenues from 2011 -2014 to the tune of around 20%, along with various economic data, calling into question China’s commitment to accurate data in the face of slowing global growth.
Now that everyone’s talking tapes and memos and impeachment – firmly derailing the Trump rally which brought investors $3 Trillion in gains, Brazil’s index finds itself down 14% after hours on rumors that the chairman of meatpacking giant JBS SA covertly recorded a conversation with Brazilian President Michael Temer – allegedly discussing hush money payments to a jailed politician in exchange for silence.
Brazil tanked a/h on Globo report of there being recordings of the current President involved in foul play: https://t.co/dSArPp6ure
O Globo newspaper also reported that JBS Chairman Joesley Batista and his brother Wesley Batista played the recording for prosecutors as part of a plea bargain, and the meatpacking giant had also hired a law firm to discuss a deal with US authorities for leniency.
P.S. Now that volatility is back, you may want to strap on a condom with a subscription to Exodus. Plus, Fly is cooking on some next-level John Nash shit that will make trading the algorithm’s signals a breeze.
Acting AG Rod Rosenstein (who reportedly threatened to resign last week over his portrayal during the Comey firing), appointed Mueller without notifying the White House first:
*WHITE HOUSE TOLD OF MUELLER APPOINTMENT AFTER ORDER SIGNED: DOJ
Mueller’s appointment comes amidst chaos in the wake of James Comey’s dismissal, a scandal most recently updated with the existence of a ‘Comey Memo’ from February alleging that Trump asked the FBI director to kill the Flynn investigation (which had already ended in mid-January).
And while earlier today, one GOP Rep. Justin Amash already suggested that if the FBI memo story is true, impeachment would be appropriate, in the clearest sign yet that Trump may be safe after all, the Washington Examiner reported that John McCain said that calls from congressional Democrats to impeach President Trump are not “rational” adding that “I don’t think very many people take that very seriously,” he said Wednesday. -ZeroHedge
The Washington Post couldn’t be happier
Rosenstein could not have picked a better choice. As a former FBI chief, Mueller knows precisely what to look for and how to conduct an exhaustive investigation. Rosenstein therefore will be lauded for stepping aside and deemed to have recovered his reputation, sullied by involvement in Comey’s firing. –WaPo
A ZHer went quite deep in their analysis of Mueller
Some have pointed out issues with the Comey memo timeline
Trump has issued a statement reaffirming his innocence
Mueller is clearly a deep state kinda guy, and Comey’s dismissal was a bold move against an establishment which may have thought they’d wrangled the President. If so, Mueller’s investigation is perhaps nothing more than leverage and political weaponry to ensure Trump tows the line.
Despite better than expected third quarter earnings, Cisco is getting hammered in after hours trading – off over 8% after the company issued horrendous guidance and announced the layoff of 1,100 jobs, adding to it’s previously announced cut of 5,500 last August.
The company reported a net income of $2.52 billion and earnings of .60c / share on sales of $11.94 billion after adjusting for stock-based compensation and other effects. Analysts were expecting .58c / share on sales of $11.89 billion.
But who the fuck cares about that?
CEO Chuck Robbins just guided way lower, predicting a drop of 4-6% vs. a 1% expected decline, with EPS estimates coming in light as well. Robbins is pointing to a slowdown in federal govt. spending as a ‘large factor,’ as well as a ‘lack of budget visibility.’
Sorry CSCO – looks like Trump has put the brakes on the bottomless govt. surveillance pit you guys have been leeching off for the better part of a decade.
A brawl erupted blocks from the White House at a protest outside of the Turkish Ambassador’s residence in Washington D.C. on Tuesday, several hours after a meeting between President Trump and Turkish president Erdogan. Nine people were injured in the Sheridan Circle skirmish, two seriously – and two have been arrested including one charged with assaulting a police officer.
About two dozen protesters showed up with signs and a bullhorn in opposition of the Turkish President’s .
We are protesting (Erdogan’s) policies in Turkey, in Syria and in Iraq
–Flint Arthur, Baltimore, MD
Arthur reported Erdogan supporters crossing police lines at least three times to attack the protestors. In video of the incident, several attackers can be seen kicking a protester with a bullhorn who had fallen, as well as a woman lying on the ground. Metropolitan police drove the pro-Erdogan contingency back with batons.
While the aggressors were initially reported as pro-Erdogan (pro-government) supporters, Voice of America reports that Erdogan’s guards participated in the violence as well. If so, it would be the second time the Turkish President’s security detail was involved in a dustup on US soil – having been accused last year of “kicking, shoving and verbally abusing” Turkish journalists attempting to enter an Erdogan speech.
Turkey has been criticized by Human Rights advocates over it’s attack on Syrian Kurdish populations in the Northern border town of Jarablus, as well as bombings of US allies in Iraq and Syria – and there have been massive protests of the government’s sweeping crackdown on all forms of dissent following a July 2016 coup attempt to unseat Erdogan. Over 100,000 people have been fired or suspended from work, and over 37,000 have been arrested – including journalists, academics, judges, prosecutors, military officials, prison guards, police officers, and civil servants.
And just last month, Erdogan narrowly won a hotly contested referendum, concentrating his power through an “executive presidency.” All executive and administrative authority will effectively transfer to the Turkish President, and the position of Prime Minister will be eliminated after 2019. Furthermore, Erdogan will be able to directly appoint top public officials, has the power to directly intervene in the judiciary, and gets to decide when the country is in a state of emergency. Despite winning the referendum, Turkey’s largest cities – Istanbul, Ankara, and Izmir all voted no to the changes, resulting in country-wide protests.
In other words, Erdogan sent his goons throughout Turkey to purge and silence any and all who oppose him. The equivalent in the United States would be Trump immediately firing and /or arresting most MSM journalists, the majority of teachers, that pussyhat judge, Rosie O’Donnell, and anyone wearing Crocs. Antifa thugs would be professionally steamrolled by militarized police led by based stick man. Facebook and Twitter would become govt. entities, and Hollywood would be run by Mark Burnett while Bill Nye identifies as whatever gender his cellmate wants him to.
For a much deeper look into the current situation in Turkey, here’s a great look into Erdogan’s current footing in international affairs.
Hours after a New York Times report alleging President Trump asked former FBI Director James Comey to kill the investigation into National Security Advisor Mike Flynn, Rep. Jason Chaffetz (R-UT) fired off a letter demanding the FBI turn over all “memoranda, notes, summaries, and recordings” between James Comey and the President. Chaffetz, Chairman of the House Oversight Committee who announced his sudden retirement from politics in April to spend more time with family, had this to say:
“According to the report, “Mr. Comey created similar memos — including some that are classified — about every phone call and meeting he had with the president.”
“So the Committee can consider that question, and others, provide, no later than May 24 2017, all memoranda, notes, summaries, and recordings referring or relating to any communications between Comey and the President.
Chaffetz later tweeted “I have my subpoena pen ready.”
.@GOPoversight is going to get the Comey memo, if it exists. I need to see it sooner rather than later. I have my subpoena pen ready.
The last week has been nothing short of shock-n-awe out of Washington D.C. since the May 9th firing of former FBI Director James Comey – officially for mishandling the Clinton email investigation during the elections. Democrats, who hated the former FBI director 6 months ago, contend Comey was fired to stifle the Russia investigation – while Trump asserts Comey assured him 3 times that he wasn’t part of it. Trump animatedly repeated this to Lester Holt on May 11th.
Fast forward to the past 24 hours; a bombshell story from Fox5 D.C. on Seth Rich was followed just over an hour later by a story from the Washington Post claiming Trump shared classified Israeli intelligence with the Russians – news which was immediately disseminated throughout the MSM .
With the brand new “classified intel” story simmering throughout the MSM, the NYT reported yet another blockbuster today;
Unnamed “sources” allege that James Comey wrote a letter in February stating that Trump asked him to kill the investigation into former National Security Director Mike Flynn.
As both the classified intel story and Comey’s alleged letter began making waves, CNN’s Wolf Blitzer asked Senator Angus King (I-ME) if we are getting close to the possibility of impeachment, to which King responded yes.
As today’s talk of impeachment ramped into the evening, Dow futures wilted – off over 100 points and holding as of this writing.
Google search for the phrase impeachment:
Looks like our old friend volatility may be back
If so, Fly’s post from Sunday is all the more prescient.
With all of the ‘two scoops’ business bogging down the Trump administration, rumors swirling about him going postal on his entire staff, there is a very real threat to all of his economic stimulus program suggestions. As such, you should head into this week’s trade with EXTREME caution.
My models suggest waiting out until Friday, to see if the broader indices outperform risk off assets.
It’s been close to a year since Seth Rich, the 27 year old computer expert who worked for the DNC, was murdered – shot twice in the back without anything of value taken from him. Rich was found alive and in shock before he bled out – his death ruled nothing more than a botched robbery.
Many suspect Rich was the source of the leaked DNC emails provided to WikiLeaks – a rumor which was fueled by the odd circumstances surrounding his death, the sudden retirement of D.C. Police Chief Cathy Lanier five weeks after the murder, and an email John Podesta sent to Hillary’s inner circle about making an example of a suspected leaker.
In the aftermath of the shooting, the Rich family hired a private investigator – Rich Wheeler, a former D.C. homicide detective who says evidence on Seth Rich’s laptop suggests that he was in contact with WikiLeaks prior to his death.
Furthermore, Wheeler believes there has been a cover-up
“The police department nor the FBI have been forthcoming,” said Wheeler. “They haven’t been cooperating at all. I believe that the answer to solving his death lies on that computer, which I believe is either at the police department or either at the FBI. I have been told both.”
When we asked Wheeler if his sources have told him there is information that links Rich to Wikileaks, he said, “Absolutely. Yeah. That’s confirmed.”
“I have a source inside the police department that has looked at me straight in the eye and said, ‘Rod, we were told to stand down on this case and I can’t share any information with you.’ –Fox5
So a former D.C. homicide detective, hired by the Rich family, was told directly by a source within the police force that they were told to stand down.
That sounds like a cover-up…
It also destroys the Russian hack narrative…
Furthermore, Wheeler said there’s more to come:
I don’t think it comes from the chief’s office, but I do believe there is a correlation between the mayor’s office and the DNC and that is the information that will come out [Tuesday].
Right before the election Dr. Steve Pieczenik – ex deputy Sec. of State under Kissinger – told the world that the Wikileaks releases were part of a ‘counter-coup’ in which elements within the US Intelligence community decided Hillary Clinton and the globalist cabal she represented couldn’t be allowed to reach the Oval Office. Inside sources – not Russia, gave the DNC / Podesta / Hillary emails to Wikileaks to be exposed to the world.
How Wikileaks changed the course of history
When the Wikileaks were released, there was a massive crowd-sourced effort on 4chan and Reddit to connect the rapidly unfolding dots within tens of thousands of emails.
There was no table of contents or any other guide. Instead, these were raw – DKIM verified emails, which would take nothing short of a massive crowd-sourced effort to process and decipher. Within days however, dots were rapidly being connected across various message boards – mostly 4chan and Reddit’s “The_Donald”. New discoveries reached massive audiences through digital megaphones provided by social media giants Twitter and Facebook, and eventually made it into the mainstream.
If Seth Rich was in fact one of Wikileaks’ sources, it’s far less of a stretch to conclude that he was murdered. Moreover, what’s left of the Russian hacking narrative is now – in my opinion, absolutely moot. This is going to get very interesting…
HP has issued a patch for the recently reported keylogger installed on various laptops, after Swiss security firm Modzero reported the software last Thursday in the Conexant HD audio driver package found on dozens of HP laptop models.
The driver stored every keystroke in an unencrypted text file on the user’s hard drive, which included passwords, visited websites, and any other sensitive information – all vulnerable to malware or anyone with local access.
In a statement, the company said “HP is committed to the security and privacy of its customers and we are aware of the keylogger issue on select HP PCs. HP has no access to customer data as a result of this issue”
In an after-hours call Thursday, HP vice president Mike Nash said the keylogger was mistakenly added to the driver’s production code and was not meant to be rolled out to end users. The patch is now available on Windows Update and HP.com for affected models.
The keylogger was scheduled to start automatically upon boot, with it’s stated function to detect user input so it could react to shortcut functions such as microphone mute/unmute. The application then logged each keystroke in a text file, which was overwritten upon the next login.
Wither an innocent mistake or something more nefarious, it’s disconcerting to think that a pre-installed factory program would log keystrokes and store them in an unencrypted local file. Good thing there are security firms like Modzero who are actively hunting for such vulnerabilities…