1. Demark Approves Bill to Confiscate Migrant’s Valuables
On Tuesday, alaw was passed in Denmark which demanded all newly arrivedasylumseekers to relinquish
all their valuables, includinggold and jewelry which is said to help pay for their stay in the country. The
passingof this law, underscoredan anti-immigrationbacklashthathasgiven many Europeancountries
ideas on howto discourage immigrantsfrom crossingtheir borders.
According to the bill, which after several hoursof deliberation was passedby great majority. This
therefore meansthat, refugees who enter Demark with assetstotaling above10,000 kroner, wouldhave
to makesome sortof contributiontotheir stay. After a worldwide outcry aboutthe stipulationsof this
law, goodsthat carry sentimentalvalue suchas family portraits andwedding rings are exempted from
confiscation.
The bill went on to explain thatseekers of asylummustwait for three years, before they can get the
chance to submitan applicationfor their families to come toDenmark, a stipulationwhich has been
criticized as inhumaneby a few advocatesfor refugees.
As the European continentfaces its largest movementof refugees since WorldWar II, previously
welcoming countries, such as Denmark are now erecting barriers which come amidstconcern thatthe
new guests couldthreaten security, put a strain onwelfare andeventually underminethe nations’ quality
of life.
Following the trend of debateselsewhere in Europe, the debatesin Denmark havebeen fueled by a so
called far-right populistparty, theDanish People’sParty, whichhasbeenwarning voters againstthe
dangersof excess immigration.
The Prime Minister of Denmark, warned thatthe United Nationstreaty governingthe rights of refugees
thatwas last amendedin 1951, may needto be updated. Demark mirrored Sweden’smove along its
border with Germany to imposeidentity checks for all travelers arriving from Denmark. Hungary has
already constructeda razor wire fence along its side of the border thatmeets with Croatia.
Challengers of the Danish rule say such a movewill only harm the reputationof the country as it relates
to generosity andtolerance.
According to a Member of Parliamentfrom the Red-Green Alliance Party JohanneSchmidt-Nielsen, the
current governmentis just addingto the separationthatwars create. The UnitedNationhave also
criticized the measure, and said thatit would set a bad example globally, and underminethe dignity of
refugees.
Based on reports, the proponentsof the bill, statedthat the governmentwasjust askingthat refugees
abide by the same rules that are implemented for Danishnationalsas well, one particular, thatthey use
their own assetsand resources before they can qualify for welfare benefits. The reportsalso made
reference toasylumseekers in Switzerland for instance, who uponarrivingmustdeclare their assetsand
handover thosewhich are costingover 1,000 Swissfrancs.

2. Bosnia on Their Way into the EU
After a long wait, there’s finally some goodnews from Bosniaand Herzegovina. Itlooksas if all
departmentsandranksof governmentare workingwell with each other, synchronizinganddirecting
activities as it relates to the overall state of economic andsocial reforms, that are aimed at developinga
better legal andfinancial framework to curb corruption, attractmore investments, renew growth in the
economy andset the country on the right roadtowards a EuropeanUnionmembership.
The international community isfully behind the effort, launched by Germany and UK last year. Two
decades after the DaytonPeace Accords were signed at the Wright-PattersonAirForce Base in Ohio,
bringingcalm to thiswar filled nation, the country battlesto reach a decision onhow to proceed forward.
There havebeen three attemptsmadeto revise the constitution, tomakethe country more efficient
from its present complex structureof 13 governments, 13 parliaments andadministration, withover150
ministers, two entities, andten Cantons within the Federation. All three attempts were failed. In addition
to that, the required constitutionalreform thatguarantees equal rightsto each and every citizen and
minority group, who was notgiven the opportunity topotentially runfor highestelected office, knownas
the European Court, wasalsoa failed attempt.
The lack of progressin Bosniaand Herzegovina, resulted in a few social unrestsin February which led to
the torchingof governmentbusinessoffice buildingsin Sarajevo. The people called for a stopto the
political corruption, jobs, changeand equal opportunity foreveryone. Eventhoughlarger institutional
andpolitical reforms are required, a top priority right now is productiveand effective concentrationon
economic andsocial reforms which seems tohave broughtthe country togethernow more thanever.
To further discussand advancethis effort, the Centerfor TransatlanticRelationsSAIS, atJohnsHopkins
University in Washingtonbroughtallof the major stakeholderstogetherlast November. Thislist includes
the EuropeanUnion, InternationalMonetary Fund, Representativesofthe U.S. government, European
Bank for ReconstructionandDevelopment, theWorld Bank, academia, experts, high level representatives
from the governmentandthe civil society of bothBosniaHerzegovina.
Gran Mirasic was one of the panelistsanda SeniorAdvisor toThe Prime Ministerof the Federationof
Bosniaand Herzegovina. He works at the University of Sarajevo of Scienceand Technology asanAssistant
Professorof Economicsandis alsoa memberof an expert body, of the FiscalCouncilof Bosnia and
Herzegovina.
He spokewith firm convictionanddetermination, andwas also quite confident thatthe country is finally
on the roadto possibly becomingthe latest to be admittedas an EU member.

3. Homes Prices Shot Up At Fastest Rate since July 2014
Based onreports, at the fiscal year ending November, homeprices in 20 U.S. cities roseat a faster pace,
highlightingthe shortageof supply amidstthe need for a steady demand. OnTuesday, the S&P/Case-
Shiller index as it relates to valueof property in the 20 shotup by 5.8%, whencomparedto the previous
year, which makesit the largest rise since July of 2014. Theaverage projection as calculated by 31
economiststhatwere surveyed, called for a 5.7% increase. While on a nationalscale, prices rose 5.3%
year-over-year.
It hasbeen found thatlow inventories are helping to increase property values, and helping tosupport
householdwealth for homeowners and countervailsomeof the damagesincurred from the fall in stock
prices. Even thoughmortgageprices are expected to remain low, a boostin wage growthis required to
bring the reality of owning a home tomore Americans.
A reportfrom the FederalHousing FinanceAgency, notedthatprices went up 0.5% inNovemberfromthe
monthof October, based ona seasonal adjustment. Theindicator calculates transactionsfor single-family
properties, financed with mortgagesownedor securitized by FannieMaeand FreddieMac. However, no
specific prices were given.
All 20 cities in the Case Shiller index displayeda year-over-yeargain, which was led by an increase of
11.1% inPortland, Oregon. Thesmallest increase was recorded by Chicago at 2%. The November
increases sped upin 14 cities from the previousmonth, with indexes for Denver, Dallas and Portland,
Oregongetting to record highs.
According to the panel who developedthe index Karl Case and RobertShiller, year-over-year
measurementgives a more accurate indication of price movement. Charlottewas the city leading in
month-over-month increasesfollowed by NorthCarolinaand Detroit respectively. Before prices were
adjusted, the 20 city measurement was up by just 0.1% whencompared tothe previousmonth.
By decreasing householdwealth, the fall in stock prices will take away approximately 0.3 to0.4
percentage pointsfrom this year’s consumerspending, basedon a research note from Goldman and
SachsGroup. They forecasted thatdecline will be compensatedby the increasing homeprices, which will
in turn limit the overall decrease in consumptionto0.2%.
Based onrecent reports, the views on residential real estate havebeen quite mixed, pointingto cooling
within the industry nearingto the end of 2015.
The purchase of homesthat were previously owned, went pastthe projected amountin the monthof
December toclose off the best year since 2006, astold by the NationalAssociation ofRealtors. Prices
went up as the supply of homesonthe market, was the smallestof any December thathas been
recorded since 17 yearsago.
In the meantime, homedevelopers surprisingly heldback on new construction, whichcaused a fall in
housingstartslast month, while at the same time, 2015 stillremains the strongestyear for startssince
2007.

4. Tesco’s Finances over Supplier Preferences Lands Them in Trouble
A new report hassurfaced that Tesco, Britain’slargest supermarkethasmadea seriousbreach of a legally
bindingcontract, to protect grocery producersby taking its own finances in preference over the fair
treatmentof its suppliers. A ruling was madeby the GroceriesCodeAdjudicator, whichstated thatthe
supermarketmustimplementsignificant changes as a result of the violations, someof which were found
to be deliberate. However, there were nofinancial penalties imposedbecause thatsort of power was
only accessible after the failures had occurred.
The inquiry began last February, after a historic accountingflaw was discoveredwithin the supermarket,
which linked to its poorhandlingof suppliersunderthe managementof the former chief executive Philip
Clarke was revealed. Tesco released a profit overstatementof £250 million, a figure thatwas
subsequently upwardly adjustedto£326 million. The accountingscandal still remains subjugatedtoan
investigationby the SeriousFraud Office.
The company is also facing possible legal action on behalf of the shareholders, which were linkedto fall in
share prices which came after the disclosure. Adjudicator, Christine Tacon, said in a statement thatthe
durationof delays, the broadnature and the range of Tesco’sbiased practices and behaviourstowards
suppliersis really a cause for concern.
The inquiry concluded thatTesco acted senselessly in delaying paymentsdueto suppliersfor long
periods, in an effort to improveprofit margins. According to the adjudicator’sfindings, the breaches were
wide based, as every supplier that was in dialogue with Tacon, providedevidence of delayedpaymentson
Tesco’sbehalf.
As a result of these findings, a bannedhas been placed on the supermarketfromdeductingmoney that
was owed for goodssupplied, so there could be no one-sideddecisionto lower a previously set price. It
mustalso providesuppliers30 daystodispute any suggesteddeductionandmake any corrections to
pricing within seven daysandimprove its invoicing, with somedisputesthat will take years toproperly
resolve. The report went onto say thatat least one supplier was owed a multimillion poundsumby Tesco
which took them more thantwo years to repay.
While Tacon found the supermarketguilty of delaying payments, shesaidTesco had notviolated the code
as it relates to paymentsfromsuppliersin return for better shelf positioningof goods. Shealso indicated
thatthere will be more work doneindustry wide onthese practices.
DuncanSwift, who is the headof the foodadvisory groupat accountancy firm MooreStephens, saida
statementwas made in the report, butdidn’tgo any further, with the potentialof supplierstakinglegal
action very low.

5. Dixons Carphone Stores’ Future Uncertain As Firm Sets To Close 134 Stores
It was reported thatover the Christmasholiday, DixonsCarphonethe increase in mobile phonesales,
helped them toclose the year ona goodnote. However, despite the strongfinish, the gadgets and
electrical retailers is planningto close 134 storesin this year.
The company, formedin 2014, fromthe amalgamationof Dixons and CarphoneWarehouse, saidthatit
would merge its remaining Currys andPCWorld shopsandplace a CarphoneWarehouse departmentin
each of the combinedstores. About79 large PC World andCurrysstoreswill accountfor mostof the
closures in the UK andIreland, therefore no standaloneshopswill remain for either brand.
The company assuredthatthere wouldbe nojob cuts andcurrent staff will be offered job openingsat a
merged store close their current workplace. It is expected thatthe combiningof the brandswill save
approximately £20 million per year from 2017 to2018 withsales stayingunchangedor getting better.
Based ona trading statementprovidedby Dixons Carphone, therevenue at stores thatwere open for a
year or more andonline, increased by 5% in the 10 weeks leading to January 9th
. The company said,
pretax profits for the current fiscal year will be between 440 and£450 million, which is slightly higher
thanthe prediction of the average city forecaster’s prediction.
Dixons Carphonesharesthatwere upby about10% lastyear, declined by 1.6% to460pin early market
tradingon Tuesday.
Mostof the sales increases seen by the company in the Christmasperiod, came from mobile phones, with
televisionsas well as domesticappliances suchas Dyson cordlessvacuumcleaners also selling well. It
went on further to say from mid-December, it hadexpected a goodChristmasbasedon subsequent
record sales during the Black Friday discountperiod at the endof November.
Chief executive SebastianJames, said thathe thinksit was a goodChristmastrading period, andthey are
now makingplansto puttheir estate intoits longterm shape by implementinga 3 in 1 format in the UK
andIreland. He also said thatthe experience hasthem that net effect on colleague and sales levels is
mostlikely to remain neutral or get better.
Dixons Carphonethatare in ScandinaviaandSouthernEuroperecorded strongperformances at its Greek
businesshelped toboostsales at established soresby 9%.

6. Thomas Cooks Axes All Tunisia Bookings over Unrest
Renownedtravel operator ThomasCook, hascancelled all British bookingsfor Tunisiauntil late November
over concernsof a violent wave of protestsacross the NorthAfrican country. Advisorieswere issued from
the Foreign Office, againstall butnecessary travel to the country, which is goingthroughits worst social
unrestsince the 2011 revolution, andasa result, the tourcompany took theinitiative to cancel all
bookingstoTunisia includingand upto October 31, 2016. Itaddedthatcustomerswill be individually
contactedif there are any subsequentchanges.
The cancelations by Cook came aboutas EasyJetreporteda fallout in revenues per seat following the
gruesometerrorist attackson Paris andthe rumoredbombingof a passage airline overEgypt. The two
announcementshighlight theissues facing parts of the tourismindustry astouristsavoid places thathave
bit subject to political unrest andterrorist attacks.
Giving reportson its last three months, theairline stated thatin October, revenues per seat were strong
butthey dippedsharply by high single digit percentages, while in NovemberandDecember, easyJet
slashedprices in a bid to attract customers.
The organized murderof 130 peopleon November13th
in Paris, was accountablefor a two percentage
pointfall in revenueper seat. On October31, the halting of flights due to the killing of 224 people in the
crashing of a Russianflight from Egypt, which Russiaclaimed was from a terrorist attack, causedanother
fallout of 1.5 percentage pointsaccordingto the airline.
The airline’s shares, down10% since the Paris attacks, declined by 3% to £15.79 andwere the biggest
losers in the FinancialTimesStock Exchange(FTSE) 100 index. Inresponseto this dilemma, easyJethas
been implementingcost cutting initiatives, despite the pressureon revenues havebeen offset by
tumblingoil prices. The airline saidthat if fuel prices remain stable it can save 165 to£180 million this
year, althoughexchange rates changeswould costabout£50 million.
There was a hostof other incidents last year which caused a lot of trouble for travel companies, which
included the intentionalcrashing of a Germanwings passengerplaneby its co-pilot, andthe Tunisia killing
of 38 holidaymakers. Cook’schiefexecutive, Peter Frankhausersaidthatin Novemberof last year, the
industry was subject tothe greatest turmoil he had seen in the last 30 years.
As the second largest airline in France, easyJetsaid in November, thatbusinesstoandfrom the country
has declined andsome of the customerswere deciding not to showup for flights.
The amountof passengerscarried by the airline rose by 8.1% to16.1 million the three monthstothe
ending of December, mainly due to increased capacity. The company alsosaid thatthere are no plans
being made tocut any jobsas a costcontrol method, andits employee numberswere actually growing.

7. Brazil among World Leaders in Global Corruption Rankings
SouthAmerican country Brazil, as well as Turkey were amongthe nationsthat fell the mostin a global
corruptionranking, amidstan ongoingfiasco at state oil company Petroleo Brasileiro SAand Turkish
PresidentRecep TayyipErdogan’sexpandedbid tobuild power.
Brazil fell to 76th
place amonga totalof 168 nationsonthe list last year downfrom 69th
place, according
to reportsfrom the Transparency Internationalinits Corruption Perception Index. Turkey continuedits
descent from 53rd
place in 2013 downto66th
. The UnitedKingdommovedupin the rankingsfrom 10th
to
14th
place, while Greece also received a boost, movingfrom 58th
to 69th
place.
According to an emailed statementfrom Jose Ugaz, chairmanof the Berlin-basedTransparency
International, saidthat corruptioncan be defeated if everyoneworks together. He went on tosay that
the only way to erase the abuseof power, bribery andexpose concealed dealings, the citizens as a unit
muststandup andlet their respective governmentsknowthatthey havehad enough.
Brazil has been hit badly by a quickly spreadingcorruptionenquiry at Petrobras, which has spreadto the
largest companiesin the country and entrappedsomeof its toprankingpoliticians. InTurkey, where the
intent of Erddoganis to broadenpresidential power, was boostedby a Novemberelection victory, as it
seems thatthe influence of governmenthasfound its way intolaw enforcement, the media, universities
andthe judiciary system.
Denmark retained its spotat the top, followed by Finland andSweden respectively. A war-riddled Somalia
andthe communistregime of NorthKorea, respectively held their last place positions.
The transparency’srankingwhich hasbecome a benchmark, is a compositeindex that pullsdata from 12
surveysaroundtheglobe, usedby investorsandanalyststorank nationsas it regards to corruption. The
index rates a country on a scale of 0 to 100, withthe latter indicatingthe least corrupt. Denmark racked
up 91 pointswhile onthe other end of the scale Somaliaracked up eight.
The U.S. gained a spotat 16th
, meanwhile Australia fell from 13thto 11th
position. Russiamadea jump
from 136th
to119th
place, and Chinareboundedfrom a fall in the previousyear to 83rd
after coming from
100th.

8. Iran’s Banks May Resume Business in the UK after Sanctions Lifted
According to sources on Monday, MelliBank andPersia InternationalBank willhave operational
permissionsonly in the UK, once they have discussedcriteria for financial terms with Bank of England. A
nuclear agreement which was reached with Iran earlier this month, ledto the lifting of the curbs thatthe
EuropeanUnionhadon its banks. Thismove may possibly bringIranianbanksthat were rolling in profits
andgrowing European ties, out of isolation less than10 years ago.
Reportsmade by Iran’s MiddleEastBank andsenior central bank official, said thatIran is ready to re-
engage with global banksin the coming weeks as internationallenders are in dialogue with their Iranian
counterparts, usingglobaltransactionnetwork SWIFT.
Persia InternationalandMelli Bank havebeen in dialoguewith the Treasury and regulator, about
restating operationsfor a few monthsnowand havebeen placed in the New Bank Start-UpUnit, which
was announcedlast week by the FinancialConductAuthority andtheBank ofEngland’sPrudential
Regulation Authority (PRA), toassistnew banksto enter the market accordingto sources.
Currently, Iranianbanksare working with regulators toget upto date with new regulationsincluding
capital markets, risksmanagementsandgovernance, prior to the restart of operations. Noneof the three
banksmadeany commentsaboutthecurrent activities.
In a statement, theUK said that their governmentis totally supportiveof movesto expandtheir trade
relationshipswith Iran andpromptsUK businessestoquickly take advantageof commercial opportunities
thatare boundtoarise. However, some sanctionsare still in place so UK businessare to ensure they fall
within compliance with all sanctionsregimes.
There havebeen Iranianbank branches in Londonfrom asearly as the 1960sandinthe early 2000’sthey
startedspinningoff as subsidiaries, which made it harder to establisha direct financial link to Iran.
The banks’ assetswere frozen after being charged in 2010 by theWest, for financing an illegal weapons
scheme andmilitant groups. They are bannedfrom makingnew loans andonly allowed to service those
loansthat were made before EU sanctionswere implemented.

9. Tumbling Oil Prices Causing Turmoil in U.S. Shale Industry
Three major shale oil companiesin the U.S., havedrastically cut their capital spendingplansfor 2016, in
an effort to stay afloat with oil prices at $30 a barrel, with one of them sayingoil prices have togo up by
more than20% for them to at least makea profit.
On Monday, itwas reportedthat the cutsfrom ContinentalResources, HessCorp andNobleEnergy,
ranged from 40 to 60%. Thismovemarksthe secondconsecutive year of pullbacksby a trio of companies
thatare knownas the mostpliable producers of shale oil.
Based onpredictions madeby analystsat Bernstein Energy, cutswere higher thanexpected with the
initial forecast being 38%. Thereductionsindicate thatoverall budgets maybeeven smaller this year
when comparedto the previousyear, when spendingdippedbetween 20 and 50%. Somecompanieswill
also be experiencing their very first decline in output. However, last year several operatorsmanagedto
increase outputnumbersasthey concocted new ways to coax more oil from rock, an act thatseems
highly unlikely to be repeated.
In hintssuggestingthatbad times are still ahead, Continentaladmittedto the fact thatthey will be
producingat least 10% less oil this year, asthey cannotafford or innovateandsell moreoil at these poor
prices. The U.S. governmentis forecasting thatproductionlevels for crude will fall by 700,000 barrelsper
day (bpd) to approximately 8.5 million bpdby the end of thisyear. Lower spendingnaturally meansthere
will be less drilling rigs. The trio of majorcompanies in the sector, said they will be cutting back on the
amountof rigs boringnew wells the U.S. shaleoil fields acrossNorthDakota, Texas andelsewhere.
NorthDakota’ssecondlargest oil producer, Continental, saidit would slashits budgetby asmuch as 66%.
A risky movewas made by the company in the fall of 2014 toget rid of its hedges. Spearheaded by
millionaire wildcatter Harold Hamm, Continentalplans to spend$920 millionthis year comingdown from
a 2015 totalof $2.7 billion. The Oklahoma-basedoilcompany saidit will notbe able to makeany profits
until oil prices are retuned to $37 perbarrel. Onthe contrary, onTuesday oil prices closed at $31.45 per
barrel.
Nobleslashed its quarterly dividendsby 44% andsaid that it spendingthisyear will be cut downto
approximately 50%. While onthe other end of the scale soto speak, Pioneer NaturalResources, which
has been knownfor its hostile hedgingprogramsaid that it would be spendingbetween 2.4 and$2.6
million this year.