The Department of State has issued this Worldwide Caution to update information on the continuing threat of terrorist actions and violence against U.S. citizens and interests throughout the world. U.S. citizens are reminded to maintain a high level of vigilance and to take appropriate steps to increase their security awareness. This replaces the Worldwide Caution dated January 24, 2012, to provide updated information on security threats and terrorist activities worldwide.

The Department of State remains concerned about the continued threat of terrorist attacks, demonstrations, and other violent actions against U.S. citizens and interests overseas. Current information suggests that al-Qaida, its affiliated organizations, and other terrorist organizations continue to plan terrorist attacks against U.S. interests in multiple regions, including Europe, Asia, Africa, and the Middle East. These attacks may employ a wide variety of tactics including suicide operations, assassinations, kidnappings, hijackings, and bombings.

Extremists may elect to use conventional or non-conventional weapons, and target both official and private interests. Examples of such targets include high-profile sporting events, residential areas, business offices, hotels, clubs, restaurants, places of worship, schools, public areas, and other tourist destinations both in the United States and abroad where U.S. citizens gather in large numbers, including during holidays.

U.S. citizens are reminded of the potential for terrorists to attack public transportation systems and other tourist infrastructure. Extremists have targeted and attempted attacks on subway and rail systems, aviation, and maritime services. In the past, these types of attacks have occurred in cities such as Moscow, London, Madrid, Glasgow, and New York City.

The real threat to China comes from technology.

Read about the technological advancements and convergences which will cause the “hollowing out” of China’s manufacturing industry, here.

China will cut taxes on the profits that foreign companies take out of the country by up to 50 per cent after rules on withholding taxes were relaxed to encourage more overseas investment.

Read the article here.

Read at your own risk. May cause the hopium feeling to dissipate quickly and leave you feeling in despair.

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More on the subject 

Whew…It seriously might be time to look at some bottom feeding…

European stock strategists are backing away from their most-pessimistic forecasts as policy makers agree on measures to tackle the region’s debt crisis.

While sticking to predictions for losses of as much as 16 percent, Morgan Stanley’s Ronan Carr raised his recommendation on European equities to neutral on July 2 and Alain Bokobza of Societe Generale SA said he has started to reduce the underweight call he’s had for at least two years. Exane BNP Paribas said investors can find bargains among companies most reliant on economic growth.

Read the article here.

“A recent meeting of the US Federal Reserve revealed that members of America’s central bank are not very optimistic about the future of the country’s economy.

Even though the Fed is at odds regarding what to do in terms of helping economic growth — and it still remains unclear whether or not a third round of quantitative easing (QE3) is to come — the official forecast from the bank suggests that the US may be sliding into a crisis.

Details from the Fed’s last meeting have been released to the public, and the minutes from that gathering reveal that the economists that oversee much of the inner-workings of the country’s fiscal policy remain concerned with the state of America.”

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“The European Central Bank said overnight deposits from financial institutions dropped by more than half to the lowest level in almost seven months after policy makers stopped paying interest for the funds.

Banks in the 17-nation euro region parked 324.9 billion euros ($397.2 billion) at the ECB yesterday, down from 808.5 billion euros the previous day, the Frankfurt-based institution said. That’s the least since Dec. 21.”

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“Germany’s top court said a decision on whether to suspend legislation for the euro bloc’s permanent bailout fund and fiscal treaty could take months rather than weeks due to the complexity of the ruling.”

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“(Reuters) – Italy said on Tuesday it may want to tap euro zone aid to ease its borrowing costs as finance ministers struggled to convince markets they are getting a grip on the bloc’s debt crisis, which a top European Central Banker said could escalate.

Prime Minister Mario Monti, who is under intense market pressure to shape up his economy and avoid being drawn into the center of the debt crisis, said Italy could be interested in tapping the euro zone’s rescue fund for bond support.

“It would be hazardous to say that Italy would never use (this mechanism),” he said after a meeting of European finance ministers in Brussels. “Italy may be interested.”

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Mebane Faber, via World Beta, is out with an end of June updated list of global ten-year PE ratios for many countries.

See the list here.

TEHRAN, Iran (AP) – An official says Iran has set up a private oil export group in an attempt to bypass a European ban on buying Iranian oil.

The ban is part of Western sanctions aimed at pressuring Iran over its nuclear program.

Hasan Khosrowjerdi, head of the Iranian oil products exporters union, said Monday the first contract for exporting Iran’s crude through the private sector will be signed next week.

Formation of the private group is the latest sign that the sanctions are taking a toll on Iran. The West suspects Iran is aiming to build nuclear weapons. Iran denies that.

Read more here:

“China’s stocks fell by the most in a month, after a drop in producer prices fueled concern deflation may spread to other parts of the economy and Premier Wen Jiabao said the economy faces “relatively large” downward pressure.”

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PYONGYANG, North Korea – Mickey Mouse and Winnie the Pooh took the stage in North Korea during a concert for new leader Kim Jong Un, in an unusual performance featuring Disney characters.

Performers dressed as Minnie Mouse, Tigger and others danced and pranced as footage from “Snow White,” ”Dumbo,” ”Beauty and the Beast” and other Disney movies played on a massive backdrop, according to still photos shown on state TV.

The inclusion of characters popular in the West — particularly from the United States, North Korea’s wartime enemy — is a notable change in direction for performances in Pyongyang. Actors and actresses also showed off new wardrobes, including strapless gowns and little black dresses.

In recent years, performances such as the “Arirang” mass games featured performers dressed as panda bears in homage to North Korean ally China.

This appears to be the first time Disney characters have been included in a major performance, though Winnie the Pooh and Mickey Mouse have been popular among children for several years. Backpacks, pencil cases and pajamas imported from China often feature Disney characters, and stories such as “Dumbo” have been translated into Korean for North Korean schoolchildren. However, it is unusual to make such images a central part of a North Korean performance and to publicize it on state TV.

It was unclear whether the Disney characters were officially licensed. U.S. sanctions prohibit the import of North Korean goods to the United States, but do not ban the sales of American consumer products in North Korea unless they involve officials or companies on the U.S. Treasury Department’s sanctions blacklist.

Read more:

AIX-EN-PROVENCE, France (Reuters) – French Finance Minister Pierre Moscovici poured cold water on a media report on Sunday that France and Germany could split between them the presidency of the Eurogroup of eurozone finance ministers.

The mandate of the Eurogroup’s current chairman, Luxembourg Prime Minister Jean-Claude Juncker, expires at the end of the month, but officials signaled last month that his term could be extended.

Germany’s Der Spiegel magazine reported on Sunday that German Chancellor Angela Merkel and French President Francois Hollande had agreed a compromise for a successor to Juncker as Eurogroup head involving a rotating chairmanship.

German Finance Minister Wolfgang Schaeuble would initially take over as Eurogroup chief, and Moscovici would then take over from him at mid-way point during his term, according to the report.

“I don’t know where this story is coming from. It’s not under consideration,” Moscovici told journalists on the sidelines of a conference in Aix-en-Provence, southern France.

Hollande, meanwhile, said there would be a “Franco-German” outcome to Juncker’s succession.

“We will all find a good solution once Mr. Juncker has finished his mandate – a Franco-German solution,” he told journalists on the sidelines of a meeting with Merkel in Reims, eastern France.

Read here:

Capitalism is in crisis across the globe – but what on earth is the alternative? Well, what about the musings of a certain 19th-century German philosopher? Yes, Karl Marx is going mainstream – and goodness knows where it will end…

Read the article here.

“The European Central Bank’s step into the world of zero interest rates is fueling speculation it may eventually be forced to follow the Federal Reserve and the Bank of England with large-scale asset purchases.

The ECB yesterday reduced its benchmark rate to a record low of 0.75 percent and took its deposit rate to zero, with President Mario Draghi saying the cuts may have only a “muted” economic impact. While deflecting questions about further measures such as quantitative easing, Draghi said “there is no feeling that we are running short of policy options” and “we still have all our artillery ready to contain inflationary risks” in either direction.”

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China has been flooding money markets with hard cold cash, or digits, and is seen as a confirmation of further monetary policy. We just got a report that China has cut interest rates.

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The BoE is meeting this afternoon to discuss interest rate policy. At the moment, they have announced additional QE of 50 Billion Sterling.

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Instead, they’ll likely only raise taxes.

“It will require both an unprecedented curb on public expenditure and an increase in taxes,” Mr Migaud said.

Or, they could blame Bush. I mean Sarkozy.

But the report revealed no “black hole” in the state books and gave credit to Mr Sarkozy’s administration for a significant improvement in the deficit since 2010. It appeared at odds with the government’s plans for tax hits on big business and the wealthy.

Two strikes. Perhaps France can just grow growth and competitiveness through big social spending?

“In health, education, vocational training, for example, France spends much more than other countries where the outcome in these areas is considerably better than ours,” Mr Migaud said.

Read the article here.