I go to the buffet because in fact it is for us a new table, because before six months we bought a table in a new neighborhood in the western part of Sydney and today all the buyers of the tables in that new neighborhood simply meet to connect with each other. so I meet with them, we eat together and after that I actually have to work and now I only work as an instructor of English to Chinese children because I can speak enough of Chinese and also I am an actor so in fact that is very loud, so yes that is my day and you will see that. so we are now at the Hilton Hotel and we are going to our buffet so here is my subscription, it is there, I want a drink. now we are at the buffet's waiting room so it seems that they are all at a very high level for me thank you! Kelnero just saw me with a drink so we are now at the event and I just noticed something very interesting all here except me are Asians but Kelnero are white people it seems that the situation here in Australia is now changing so we are now at our table and very soon we will start eating as you can see, it is very beautiful look at this, it says VIP and Esperanto that is very important people but it has the name of my wife my name is missing on this table so it seems that I am not right here I have a bottle of wine and it seems very tasty but really I don't like wine but also I have another bottle one moment Shras you can see that it is very tasty because they have their brand on the bottle so it is a problem now it is almost 12 o'clock and it is 12 o'clock and 12 o'clock I have to go to work with the kids but the food is not yet coming so maybe I can't eat ladies and gentlemen welcome to the mega wall property group thank you reception before the reception for me starts so I have to leave the buffet before the food is coming because I have to work now so this morning I didn't eat at all and probably I can't eat or maybe Esperanto to eat because I have to work until the next so now I am 2 minutes late and I still have to eat for at least 2 minutes and I ate a sausage without a bowl so I have to leave the buffet and I ate a sausage without a bowl I just ate a sausage and I quickly ate that but now I have to leave so I just completed my first lesson with the kid and it is an interesting occasion because he is already with his family in Australia for 6 months but before he came to Australia he didn't speak English and when he came he just learned English and I will be in the middle and it is interesting because I can see the mind of the kid and how he learns and he, the kid he is maybe 8 years old he already knows many words about dinosaurs and other strange things but he doesn't know the word for apple, orange and other words and for example he knows the word for zombie because he really likes to play the game of zombies against plants so he knows those words but when I teach him I want to say a language or an ocean and he doesn't know those words and he tells me well what is an ocean what is a language what is a sea and that sea and I just sit there and then I have to teach him the concept of the language because he never saw them with English words so he knows the concept after I learned it but first he doesn't know but later he learned many cards that he has for dinosaurs and he knows the different words for so many dinosaurs even I don't know the names but it's a bit strange because last week I was with my friend and he is a friend and he is a friend with a girl and they just left the girl because my apartment was a few hours away and after that I played with the child and the English level of the child grew a lot and after that he decided to learn how to teach English for his child and he gave him enough money and after that I learned if I want to my other friends to learn and he talked to them and they always want to teach their children so now I'm almost full time almost full time during my free time and when I came home I was 18 years old because she wanted to she wanted to pass her exam on English here in Australia because she can speak Australian and after that after that I was 6 years old and I speak English very well so I need to help her and after that I have a Skype in English so after that I'm an English instructor and in fact I almost spend more money on my last job so maybe after a few months I'll be a full time English instructor and help for interviews and such because in fact I'm a teacher and a teacher and suddenly help me to chat and they say it's very good and they can help us we certainly want their services so now that's what I'm doing I'm a full time teacher I'm passing through the English instructor and other things with other people so I just came here and now I'm going home I haven't eaten yet so I'm just going to the boutique serve you something and then I'll start my second lesson for the day finally I can eat and that's all I'm now at home and in fact I spent my whole night teaching English to the first Canadian after the adolescence and after that I have a Skype convent but in the Skype convent I didn't really teach English but I helped to improve their interview process and answers and now it's almost the middle of the night and I just wanted to say that also I just lost a big financial subscriber on Patreon so if you like my channel and you want to help me just go to the legal sub in the description and give a few dollars a month and that's all and if you like this video like it, share it, subscribe to my channel if you haven't subscribed yet and I'll see you in the next video and you're not there I'll find you and teach you Esperanto for trans people as always I want to thank my subscribers for Patreon but before I do that I just want to tell you to make a Patreon sub and subscribe to my channel so I'm just a donor now and three timp welcome to the beginning Chris Perdue, Craig Robertson Gibi Ante, Jacob, James Harlan Jason Knuckles, La Stranga Lex Deliviera Ludisto Lupe Magrita Kilpac, Robert Nielsen Robert Port, Sarah S.C. Shane Power, Tommy Linsley Andy Montinas and you know who


Mr Speaker, I beg to move the following resolution stand in my name. Mr Speaker, before I read the resolution as Minister of National Security, I would like also to thank the Royal Solution Police Force and the City Police. Mr Speaker, we always are very quick to condemn when things go wrong, but when things work out, we seldom give the proper praises. The Royal Solution Police Force has been under tremendous pressure over the last weeks and months and years, but particularly over the last few weeks, and they showed the resolve and the commitment to doing their job and understood that what's important is to remain focused. And they remain focused and for the season there was no major incidents and I want to thank them for that Mr Speaker. I also want to comment Mr Speaker on how it seems almost there are people who seem almost ready to rejoice at what they perceive to be things that will hook the government. And I speak about a fake mood on the Internet on Friday, which got widespread publicity. And I want to call on people that is very sad with the speaker for these kind of things to be put out in that manner. It doesn't auger well for the country, it doesn't auger well for the future of the country. I want to thank the Royal Solution Police Force, I want to thank the commissioner and the men and women of the force for their work. And I want them to continue to do what they have to do. I also want to thank the RSS, members of the regional security system, who were also on the ground for the carnival days. And also to extend my congratulations to the icons over there. And Mr Speaker you feel to see that Bradley from my constituency forgot. At the last sit in the member for Swazil, he told me that being said, I'll proceed with the resolution. Whereas it is provided on the section 46 for a of the value added tax ca 15.4 to the act that the minister is responsible for finance me by all the publishing the gazette all to the rate of penalty on the act. Whereas it is further provided on the section 46 a for a of the act that an order may an order made pursue on the section 46 for a of the act is subject to an affirmative resolution of parliament. And whereas the minister of finance seeks approval of the job value added tax alteration of rate of penalty order by an affirmative resolution of parliament to alter from the first day of May 2023 to the first day of May 2024 the rate of penalty to 0% of the tax paid on define up to the financial year 2021. Mr Speaker, you may recall that last sitting I came to parliament and asked the minister of finance to approve the value added tax alteration of rate of penalty order which alters from the first day of May 2023 to the first day of May 2024 the rate of penalty to 0% on the tax paid up to the financial year of 2021. Mr Speaker, you may recall that last sitting I came to parliament and asked for a resolution to waive the interest Mr Speaker, the interest on the value added tax and other taxes Mr Speaker. All interest and penalty Mr Speaker on all taxes the fact the pay away the hotel abolition tax withholding tax Mr Speaker. We waived last sitting we waived the interest on these taxes and the penalties but we could not waive the penalties on that because of that act is a separate act and it's a secret act. And sometimes we do is not advisable to always be altering the sexual so we had to we had to come to parliament today to waive the penalties Mr Speaker on that. So as you speak after this resolution is passed all the taxes the HAT the accumulation tax the fact the pay away withholding taxes there will be there will be no penalties and interest on all these taxes they will be waived on all these taxes up to May 2024. Mr Speaker that is a significant relief to the private sector and to the people the business people who collected that but did not pay it over to the government. What this means Mr Speaker is that as I said there was there's 599 million dollars worth of taxes due to the government included interest and penalties 599 million dollars due including interest and penalties. What we've done Mr Speaker is we've waived interest and penalties of nearly 300 million dollars which we've completely and we're asking the people who hold the government to please pay up what you owe because the government has waived the penalties on interest. Mr Speaker that is significant in that when you read or you hear about comments on people's balance sheets when you ordered of them Mr Speaker in penalties and interest it has to be shown in your balance sheet not only as an account as an accounts payable or if you want if you want to be if you want to be creative you can put it as a long term liability so it doesn't affect your working capital. But still for that you have to include Mr Speaker you have to include it in your balance sheet because you owe the government it's not contingent you owe it. What that will do is that these businesses now can reverse these payables they can reverse it Mr Speaker so it becomes they have to reverse it debit the payables Mr Speaker and credit the tax owed. So that means it reduces the tax that they owe to the government and improves the balance sheet improves it significantly so they can go to the bank and say to the bank I do not owe these amount of taxes Mr Speaker. So that is actually mindless help to the private sector and no one can say that this government is not trying to assist the private sector Mr Speaker not trying to assist them after Covid but these taxes will not due for Covid these taxes will do wrong before Covid we've waived all of them so this is the government's commitment to the growth and the expansion of the private sector Mr Speaker I've said before in this honourable house that this government no one can ever queues this government of being anti business or not supporting the business sector in solution and it is clear Mr Speaker it is clear so Mr Speaker I'm very pleased to ask members to support this resolution to support this tax amnesty which is done Mr Speaker I mean Mr Speaker the tax amnesty also goes to personal income tax also you know people owe personal income tax Mr Speaker will be waiving all the interest in the penalties waiving up to May 2023 we extended it now up to May 2024 for people who owe personal income tax to Mr Speaker so this amnesty is on hold of in the history of St Lucia's private sector Mr Speaker all I'm asking is meet the government halfway we've done our part all I'm asking for the private sector I mean the people who owe taxes please come to pay the government Mr Speaker because when you pay the government many things will happen in a different way and I want to say Mr Speaker we are committed we are committed if what we are owed we paid when we have to pay refund we will refund but we can't refund what we haven't got because refund Mr Speaker means that you've filled in your tax and the government has money for you you pay what everybody pay as you pay and I also want to tell taxpayers to please go to change your tax code change your tax code so that the government cannot take on new taxes from you Mr Speaker so you change your tax code now it's very simple there's no charge go to in revenue and change your tax code so that the tax you pay every month it will not accumulate in terms of you pay the government too much Mr Speaker Mr Speaker I ask members to support and I'll be back with other resolutions that will give further relief to the business sector and the taxpayers in the country I thank you Mr Speaker


So the next event to destiny festival of the last comes next Tuesday which is the 29th of October today I bring you all the latest news around this event recently dropped by bungee including some epic looking new rewards. How's it going guys my name is dpjennalite thank you for stopping by and checking out the video if you do enjoy it leaving a like really helps out and subscribe if you want to see more destiny. Okay so getting straight into their post and we'll read through everything bungee state. In a universe where darkness appears around every corner and death usually follows it's important to gain courage by looking fear in the face. Candy helps too. After taking a year off Eva Lavante has returned as the herald of the festival of the last. This holiday is a time for guardians to done irrelevant masks and celebrate the memories of those that are lost. As a growing threat looms ever present return to the tower grab some candy and remind yourself what you're fighting for. Dark the halls. With Eva's return comes a renewed dedication to decorations. Candles, lights, cobwebs and pumpkins adorn every nook and cranny of the tower to ensure spirits will be raised. Speak with Eva to begin your journey and acquire a masquerade helmet to participate. Earn chocolate strange coins from parenties and activities to purchase festival of the last mask ornaments for your new helmet. All destined to players can partake in the festivities including new light players who will need to be 770 power to begin. Back by popular demand candy makes its sweet return as a reward to be spent towards mystery grab bags and the Braytech werewolf legendary auto rifle. After acquiring the fully masterworked 950 power weapon create your own monster with random rolls. While the festival is underway, guardians are needed to return once more to the haunted forest and defeat their fiends, ghouls and terrors that lie within. You will have 15 minutes to make it as far as you can but beware of what awaits you at the end. Terrorverse. There are more treats to be had in the eververse if you'd like to further customise your guardians costume. From spooky, scary, skeleton armour ornaments to jackhole lantern masks, we're sure you'll find something to terrorise your enemies and you can see that armour on screen now looking pretty sweet. To those witches and warlocks out there who are looking for some good clean fun, your favourite spooky sparrow has returned and we can see that on screen now absolutely epic. The festival of the last is a time to honour those who have passed on. Make sure to let your crucible enemies remember it forever with their own personal tombstone, pretty cool emails as you can see on screen now. Join us in the tower and beyond and help us celebrate the festival of the last beginning on October 29th and concluding November 19th. Now here's a few more rewards from the festival of the last and some of them look absolutely crazy, that sparrow top right looks amazing, the ship incredible, the back gauchilla believe that it looks amazing, the pumpkin gauchilla looks incredible too. Now we do have more details on the festival of the last so let's check out what they state. So the haunted forest there will be two versions of this, a darkened instance of the infinity forest on Mercury, descend into the depths with a fire team and see how far you can get before it disintegrates. In order to launch into the haunted forest after it has been unlocked, players must select the haunted forest node in the tower destination map before launching. Players must choose between two versions of the haunted forest. Haunted forest a recommended power level 750, this standard version of the haunted forest features matchmaking and will pair players until a fire team of three has been assembled. Fire ward haunted forest minimum requirement of 750, in this version of the haunted forest matchmaking is disabled, players may enter the haunted forest solo or with a pre-made fire team but no additional team members will be matchmade into this activity. Additionally players may launch directly into the matchmade haunted forest from the tower courtyard by interacting with the haunted forest mission totem next to evil avante. Once players have entered the haunted forest they will have 15 minutes to clear branches, defeat terrors and collect both candy and chocolate strange coins. Players may then return them to evil avante in the tower courtyard for festival of the lost rewards. Now once players do unlock the haunted forest they can purchase balances, masks and other festival of the lost rewards from evil avante. Masks and rewards may be purchased using candy and chocolate strange coins which can be earned by defeating enemies and completing activities during festival of the lost while a mask is equipped. Please note festival of the lost candy and chocolate strange coins do not dismantle individually. In the event that players choose to dismantle these items the entire stacks will be deleted. Festival bounties during festival of the lost evil avante offers festival bounties that can reward players with xp, glimmer and chocolate strange coins. Masks during festival of the lost evil avante offers 5 masks that players may purchase for chocolate strange coins. Furthermore masks earned during festival of the lost 2018 can also be equipped by players who earn them or masks must be equipped as ornaments on the masqueraders helmet which is offered by evil avante for 100 glimmer and we can see some of the masks on screen now hidden swarm mask, goblin mask, mithrax mask, callus mask and drifter mask pretty cool. Rewards during festival of the lost evil avante offers players special rewards to show off the spirit of the season. The masqueraders helmet which is required to equip masks and festival of the lost mods only contributes to players power while festival of the lost is active. So on to festival of the lost mods, once players have purchased the masqueraders helmet from evil avante they can equip masks as ornaments and apply festival of the lost armor mods. Festival of the lost armor mods can only be applied to the masqueraders helmet and they are only active while in the haunted foe. So we have higher purpose vampiric touch and energetic assassin and what these mods do are as follows significant damage resistance for airborne, significantly increased damage to all enemies, increased their drop chance of heavy ammo on kill, significantly increased damage to challenging enemies, precision kills trigger health regeneration, increased the drop chance of heavy ammo on kill, precision kills grinds grenade and melee energy, significantly increased damage to terrors, increased the drop chance of heavy on kill so that's pretty cool. And there are also festival of the lost triumphs. In addition to rewards and masks offered by evil avante players may also complete exclusive festival of the lost triumphs. These triumphs can be found in the triumphs page under seasonal events, these triumphs are as follows. Days of the dead complete festival of the lost 2019 triumphs. Still not scared defeat terrors in the haunted foe. I frighten in power acquire the exclusive festival of the lost 2019 weapon, master of disguise acquire all festival of the lost 2019 masks. Strange times collect chocolate strange coins during the festival of the lost 2019. Sweet tooth collect candy during festival of the lost 2019, bountiful complete festival of the lost 2019 bounties.  And then there's one that's redacted obviously a secret one. And that is basically it guys so there's loads of things to do with this event that comes next Tuesday to 29th October. But yeah looks pretty cool not going to lie something to do with like absolutely epic I'm looking forward to trying out the werewolf the beretic werewolf even though it is a re-skin. Who cares? But yeah guys those are the details and all we know so far about the festival of the lost 2019. If guys have enjoyed the video leaving a like really helps out. If you're new around to and want to see more destiny 2 videos be sure to subscribe and if you never want to miss a video upload you can turn notifications on by hitting that bell button. But guys thanks as always for stopping by hopefully you enjoyed the video and hopefully I will see you on that next one.


The Kraft Foods Company presents its traditional Easter program with Willard Waterman as the Great Gilded Sleeve. The Great Gilded Sleeve is brought to you partially transcribed by the Kraft Foods Company. Kraft makers of Velvita, the famous pasteurized processed cheese food that tastes so good and is so good for you. Yes, Velvita is another of the Kraft family of fine foods. Foods you can depend on for delicious eating, for wholesome, healthy eating. So remember, to get the cheese food of quality, get Velvita, the cheese food that's made by Kraft. Well, in the town of Summerfield, it's the day before Easter, and the Great Gilded Sleeve's family is making elaborate preparations for the occasion. Marjorie has selected a new Easter outfit, Leroy has a new suit, and they've resolved to do something different this year. Attend the Easter Sunrise service. Of course, the Great Gilded Sleeve hasn't heard about these early morning plans. It's something I've always wanted to do, Leroy. Yeah, it'll be keen. Boy, I can't wait to get up at four o'clock in the morning. Let's go talk to Anki. Anki? Hey, where are you? In the dance, children. Are we interrupting anything? No, not at all. Just glancing through the paper, looking for an Easter gift for Grace and Leela. Oh? Yeah, I guess I could get them some of these two-pound chocolate Easter eggs. They're not too expensive. Well, if you want to be cheap, why don't you get them an Easter rabbit and let him lay the eggs? Leroy, I'm not trying to be cheap. I'm just trying to hold down expenses. Easter's beginning to cost as much as Christmas? Speaking of Christmas, do you know what I want next time? Leroy, please. Now then, what's the purpose of this delegation? Well, Anki, we have the most marvelous idea. Tomorrow we're going to Sunrise service. Yeah, we're getting up at four o'clock in the morning. Four o'clock? Well, have a good time. Anki! Just leave quietly and come home quietly. You mean you don't want to get up at four o'clock? No. But Anki, the sunrise will be beautiful. Imagine, I've seen the sunrise. I work my way through college delivering milk. Yeah, I'm going to the eleven o'clock service the way I always do. And I'll need my sleep, so I'll be alert when I pass the collection plate. I don't want to drop it again. Well, of course I can drive Leroy and Bertie to the service, but I wish you'd come along. Oh, is Bertie going? She's singing in the choir. A hundred voices, Anki. Well, I would like to hear Bertie sing, but if there are ninety-nine other voices, I wouldn't hear much of Bertie anyway. No, no, it isn't that Bertie, but I intend going to the eleven o'clock service tomorrow. I had my day all planned. Very busy day. We all have a very busy day ahead, Anki. Yeah, I know Bertie's going to be busy. Bertie's going to sing like an angel at sunrise. Then she's going to fly home and bake a ham. You ought to see Bertie's choir, old bunk. Really? Oh, it'll be a beautiful spectacle, Anki. Cedar Hill will be banked with flowers. Yes, I read about that. Well, I've been there every year and it's worth it just to hear those trumpets when the sun comes up. It is, Bertie. Oh, Easter's such a thrilling day. And, Anki, you'll see all the beautiful women in their new spring dresses. Eh... Well, if you children insist. Hello, boy. I'm glad you changed your mind, Miss Guilty. You are. I didn't exactly change my mind. I've been considering going for some time. But I wanted to be sure all of you were as willing to get up at four o'clock as I am. Oh, brother. Hey, look at Pee-Bee's window. Well, decorated for Easter. Eh, that rabbit holding the talcum powder looks just like Judge Hooker. Well, I think I'll go in. I still don't have gifts for the girls. Hello, Pee-Bee. What can I do for you this morning? Pee-Bee, what would make nice Easter gifts for Grace and Leela? Well, Easter is usually a little chilly. How about giving them a hot water bottle? One for each, of course. Oh, Pee-Bee. How about some perfume? Perfume? Women like to dress up for Easter in a good perfume. And like this is the clowning touch. How much is it, Pee-Bee? $12 an ounce? That's the clowning touch. Well, what the heck? Wrap up two bottles. It's Easter. Okay, well.  Yes, indeed. Pee-Bee, guess what important official is getting up at four o'clock in the morning for the sunrise service? The Reverend Mr. McNair? Hey. Well, he's got to be there. I'm thinking about a fellow who's just volunteering. You don't say. Yeah. Taking the little family. And I'm passing the collection plate at the 11 o'clock service, too. Well, good for you. I went to both services one Easter. Yeah, that's all. I didn't sleep the night before, not wanting to miss the sunrise service. And by 11 o'clock, my eyes were so red, I wore dark glasses at church. You did? You know what the minister did? He lectured me for staying out all night. Oh, my goodness. But Mrs. Pee-Bee and I always enjoy the sunrise services. Of course, it's usually a little foggy at that hour. Well, I haven't been up at that hour since I was in the air raid warden. Well, you better take a flashlight. There's a tendency to bump into trees. Oh? If you're going to show off a new suit, it's well to take a cushion along. Pee-Bee, I'm not the sort of person who just goes somewhere to show off. I'm wearing my old blue search. Yeah, you can't hurt that. Yes, yes. It's quite a climb up Cedar Hill, Mr. Gildersley. Pee-Bee, are you trying to discourage me? Oh, I know. I consider it quite a rewarding experience. In fact, Mrs. Pee-Bee and I would be going this year if she could stand the track again. You know, you're settling for the 11 o'clock service, are you, Pee-Bee? Yeah, but between you and me in the gate post, I'd rather get up at four o'clock and go with you than go to the 11 o'clock with Mrs. Pee-Bee. I don't follow you. She insists on wearing her new Easter bonnet. Well, what's the matter with it, Pee-Bee? That bad, huh? Worse, it's one of those dove-on-the-nest affairs. Oh? Mr. Gildersley, I don't mind having people pointed, Mrs. Pee-Bee's hat, but when bird dogs start pointing, it... Pee-Bee, it can't be that bad. No, no, I wouldn't say that. Well, Gildersley, you're ready for the sunrise service. Yeah, I wonder if I will need this flashlight, Pee-Bee, sold. Who's that? Oh, the judge. Here I am, Diogenes. Judge, what do you mean, Diogenes? With that flashlight, you must be looking for an honest man, and here I am. All right, Judge. Up in, Gildersley, I'll take you home. Oh, thanks, Horace. That's where I'm headed. Gildersley, why are you carrying a flashlight in the middle of the day? I need it in the morning. I'm getting up at four o'clock. You're going to the sunrise service? You bet. Then I'm going to the 11 o'clock service. Well, you must have a new suit you want to display. Judge, you're as bad as Pee-Bee. I'm not going to church just to show off my clothes. Besides, I don't have a new suit to show off. I see. Here comes the bump, Gilder. What bumped me in the back of the head? That's my canteen. Canteen? What is all this junk in the back of your cock? Thermos bottles, blankets, folding chairs, and a buffalo road. Judge, where are you going? On a safari? I'm taking Miss Matterhorn to the sunrise service. Will you need all this equipment? Well, you have to prepare for it. You're not just taking a flashlight, are you? Well, I... And besides what I have in the car, Miss Matterhorn is packing the lunch basket. A lunch basket? The road to Cedar Hill is narrow, Gilder, and with several hundred cars up there, it takes hours to get home. Miss Matterhorn and I enjoy the service, then spread our lunch and listen to the singing of birds and the clash of bumpers. That eleven o'clock service looks better and better. Hey, I thought it was all settled that you'd go. No, my dear, they can conduct the sunrise service without me. You, Leroy and Birdie, go and enjoy yourselves. I don't know why you don't go. My dear, I might not get back in time to pass the plate at the regular service. Just as traffic is pretty heavy out there. Uncle, you've just cooled off on the idea. Well, I'll admit, I'm not as keen about it as I was this morning. Why? Well, Peavey and the judge netled me. They accused me of going just to show off my new Easter suit. But you don't have a new Easter suit. You just don't want to miss out on your sleep, that's all. That has nothing to do with it. I'm staying home as a matter of principle. All right, Uncle, that's your final decision. That's my final decision. Well, it's grace. Hello, Throt Morton, Marjorie. Hello, Miss Tuttle.  Really? I have a little Easter gift for you. Oh, that's very thoughtful of you, but why don't you give it to me early tomorrow morning? Early tomorrow morning? Leroy told me you're all going to the sunrise service. He did? Well... Would it be terrible of me if I invited myself to go along? Oh, why, Leroy, Birdie, and I'll be delighted to have you go with us. Grace, I had no idea you planned to go to the service. Oh, I wouldn't miss it. Marjorie, you should see my Easter suit. Oh, I want to. It's blue pastel file with PK collar cuffs and gloves to match. Oh, it sounds darling. Yeah, it sounds great.  And that is all. I have matching linen shoes and hat with file trims. Oh, how wonderful. Oh, brother. It's Easter thrilling. What are you wearing, Marjorie? Well, I have the cutest linen dress with a full skirt and a fitted top, and it has eyelet trim. Very smart. Yeah, I can see there's no conversation for a man. Oh, Throtmorton, here we are talking about our new outfit and not letting you get a word in. I know you're going to be so handsome in your new Easter suit. Handsome? Well, thank you. I like to see men dress up. You know people don't look just at the pretty girls. Oh. I hope you get a powder blue pinstripe. I just love them. Well, I must go. See you bright and early in the morning, Throtmorton. Yes, indeed, Grace. Bright and early. Bye-bye, Marjorie. Bye, Miss Tuttle. Uncle, I thought you decided not to go to the service. You're going after all, Mr. Killsleeves? And why shouldn't I go? Miss Tuttle talking into it, Miss Marjorie? She had nothing to do with it. No? I thought you weren't going because of what the judge and Mr. Peavey thought. Why should I worry about what the judge and Peavey think? I'll put on my new suit and go. You don't have a new suit? Well, I'll get one. A powder blue pinstripe? Well, I had that in mind anyway before Grace mentioned it. Yes. The Great Killsleeve will be back in just a minute. How do you like your eggs? Scrambled, baked, poached in an omelet? Now there's a beauty of an egg dish, an omelet fluffy and light and golden brown. And for the most delicious omelet you ever tasted, try this popular cheese version you make with velvita, craft, smooth, melting, pasteurized, processed cheese food. Start by melting a half pound of velvita in the top of your double boiler. Then stir in a quarter of a cup of milk and keep stirring till this mixture is smooth. It'll just take a minute or two because velvita melts so easily, so perfectly. Then add the velvita mixture to four seasoned egg yolks and finish making the omelet as you usually do. When it's ready to serve, spread it with your favorite jelly. And mom, is it a wonderful main dish. It's extra good tasting because with every bite you'll enjoy velvita's fine, rich, yet mild cheddar cheese flavor. And even more important, velvita makes this omelet especially nourishing. Two ounces of velvita, just two ounces, the amount you get in the single serving of this velvita omelet, give you more of milk's vital food values than a big eight ounce glass of milk. And you know how important those food values are to your family's good health. Cook with velvita often. Let this fine cheese food give you more delicious, more nourishing meals. Get a two pound loaf of velvita tomorrow. Just be sure you get genuine velvita. It's the finest quality cheese food you can buy and it's made only by craft. Well, the great gilded sleeve had decided not to attend the Easter sunrise service with his little family when one of his girlfriend's Grace Tuttle came over and mentioned how handsome he'd look in his new suit. Of course, the great man didn't have a new suit, but that was two hours ago. Isn't Uncle Home yet, Bertie? Not yet, Miss Marjorie. He's probably having trouble finding a suit. Well, he shouldn't have waited till the afternoon before Easter. No, ma'am. I never saw a man change his mind so fast. Neither did I, Bertie. First, he said he wasn't going, then he said he was. Then he said he wasn't because he sprayed somebody thinking he was showing off a new suit which he bought which he wasn't because he didn't. That's all he... Then he said he was because Miss Tuttle thought he'd look handsome in a new suit which he didn't have but which he would if he had it. So I hope he'll get it. So do I, Bertie. Got in the box, Miss Gisley. New suit? Yeah, that's right. Unky, why'd you ring the doorbell? Well, it seems that when I tried on my new suit, I left the keys in it. I was excited, I guess. Well, open the box, Unky. Let's see what you've picked out. Yeah, all right. If I can get rid of some of this wrapping twine. Hello, Leroy. Hi. Maybe I can help you, Unky. What's going on? I sure am anxious to see that. So am I, but what am I anxious to see? What's in there? Just keep your shirt on, Leroy. Did you get the one with the stripe? Yeah, white stripe. White stripe? What's in there? A pole cap? Leroy, don't be so silly. I'm not. I'm just trying to find out something. I can't untie this knot. Where's my pen knife? Miss Gisley, how'd you get it so fast? I practically had to grab it and run. Run with what? It still has to be let out, Bernie. Well, take the lid off and let it out. Yeah, there it is. Isn't that a beauty? Oh, it's beautiful, Unky. Ain't that funny? No, for corn's sake. Nothing but a suit. My Easter suit, Leroy. I thought you weren't going to buy an Easter suit. Well, Margie, how do you like this necktie? I bought to go with it. It's very striking, Unky. I bought baseball bats on it. Leroy, they're not baseball bats. It's just a modern design. And he got the powder blue suit. You don't think he'd come home with anything else after what Miss Tuttle said, did you? Oh, so that's why I bought a suit. You want Miss Tuttle to see in it. Leroy, that isn't it at all. There'll be hundreds of other people who'll see me in it, too. Yeah, I mean, it... Bernie, you suppose you can give me a hand with a few alterations? The tailor couldn't get it ready today. It's a little late, and I've got to take him in my choir robe. Well, I guess I am upsetting things a little. If we're going to get up at four o'clock, we should be getting to bed soon. Yeah, I've got a lot of things to do. Well, so have I, but I'll help you with Unky's suit, Bertie. Yes, ma'am. No, let's not make a big thing of this. What we need is a little organization, and I'll be the organizer. Sure. We all have things to do, so let's do them. Bertie, you go do the things you have to do. Yes, sir. Margie, you and Leroy get the things done that you have to do. Hey, Unky, what are you going to do? I'm going to set the alarm for four o'clock and go to bed.  Leroy, there'll be a lot of things to do in the morning, and I'll be up bright and early doing them. He's done. Unbelievable. How's the rest?  Where is the dying thing? Look out, you're pushing it off the table. Oh, my goodness. Stop. Step on the thing, Leroy. Do something. Oh. Thank you, my boy. Good night. Sunrise. Oh, yes. Up, everybody. Right. The way the traffic is slowing down, Leroy. Such a winding road. Yeah. A little rough, too. Grace, I hope your Easter outfit isn't getting rumbled. It's so beautiful. Oh, I'm fine. You look lovely. Tell. It's dark. No, Leroy. Marjorie, how are you and Bertie doing? All right, auntie. I just hope Bertie isn't going to be late to join the choir. Oh, don't worry about Bertie. Oh, we'll make it. We'd be there now if I hadn't spent 10 minutes crying his sigh. Well, Leroy, I had to get it right. This is Easter, you know. Are you stopping, auntie? This is as far as we can go, Marjorie. Cars are all parked ahead of us. Well, let's get out and start hiking. Anki, aren't we awfully far away? Oh, my dear, I'll get you there. Just follow me. I know a shortcut. We've got plenty of time. There's no sun rise yet. I can't see a thing in this fog. Hey, Aunt, where's your flashlight? Flashlight? Well, last night I put it right where I could lay my hands on it this morning. And you don't know where you put it? Yes, I do. It's right on the dresser at home. Come on, everybody. Follow me. Anybody since we left the car? Well, Leroy, not many people know about this shortcut, I guess. Anki, do you know where you're taking us? Of course I do. I think. Yeah, sure. Yeah, this is the top of the hill, right here. This is the top of the hill? For what hill? This don't look like Cedar Hill to me. Well, we came up the back way for you. You certainly did. Quite a climb. Where is everybody, Anki? Well. Hey, the fog's lifting a little. Oh, yes, you can see up here. Look, there's a choir in everybody. Where? Across the ravine on the other hill. Uncle Mort, you and your shortcuts. I'm afraid Birdie will never make it in time to sing with a choir. Well, I'm sorry, Birdie. I'm very sorry. Oh, they'll get along without Birdie. We'll just have to watch things from here. Hey, there's a lot of moving around. What are they getting ready to do? They're going to have a pageant, Leroy, telling the story of Easter. Yeah? Well, here we are all dressed up and we can't be with the crowd. What an Easter. Well, Mr. Gil Sleeve, there was only a few on hand for the first Easter when they saw the rock was rolled away. Oh, that's right, Birdie. We shouldn't forget that. I guess nobody there put much importance on fine clothes. I guess they didn't. They're getting ready to sing about the crucifixion. Oh, Birdie, you were going to sing that? Yes, ma'am. Birdie, will you sing it for us? Yeah, we'd like to hear it, Birdie. Won't you? I'd like to. Were you there when they crucified my Lord? Were you there my Lord? It called tremble, tremble. Were you there when they crucified my Lord? Were you there when they laid him in the tomb of the Lord? Were you there when they crucified my Lord? How beautiful. Yes, we got lost, but we found the true spirit of Easter. It's a new day. That's the meaning of Easter. A new day and new hope for the world. Can a sandwich be? That's easy. A sandwich made with Velveeta, Kraft's famous pasteurized processed cheese food, gives you more of milk's vital values than a big eight-ounce glass of milk. Imagine more high-quality protein, more calcium, more phosphorus, riboflavin and vitamin A. Let your family enjoy nourishing, delicious Velveeta sandwiches often. Remember, Velveeta is the cheese food that's digestible as milk itself. The cheese food of top quality made only by Kraft. This is Gilda's leave again. Thanks to Birdie and the children, our little journey to the mountain top for the Easter sunrise was a very wonderful experience. I hope that for each one of you, this Easter will bring renewed faith in the promise he gave to all of us. Renewed strength to follow his light through these days when the forces of darkness endeavor to confuse our path. Thank you all. Birdie, your song was lovely. Good night, everybody. See you next week. What goes into a perfect sandwich? Maybe it's roast beef or savory baked ham. Whatever your favorite, the perfect meat sandwich needs the perfect mustard. Kraft prepared mustard. For when you add a little mustard, you add a lot of tang. You can take your choice of two kinds of Kraft mustard. Mild Kraft mustard is smooth and delicately spiced. Or if you like your mustard with extra pep, try Kraft mustard with snappy horseradish added. Keep them both on hand and family happy. Next time, get Kraft prepared mustard. Tonight, join Groucho Marks for You Bet Your Life on NBC.


This is your Current Ops Report. Exercise Phoenix Express 2015 concluded in Tunisia May 25th following 10 days of joint operations between 13 participating nations from Africa, Europe and the U.S. The exercise took place largely off the coast of Africa in the Mediterranean Sea and provided participating militaries an opportunity to enhance their expertise in combating illegal migration, piracy, and movement of materials for weapons of mass destruction. I'm Petty Officer Brian Biller, and this has been your Current Ops Report.


Hello everyone, thank you for being here. I will address today the concept of systematic fundamental arbitrage in equity. I will answer all the questions as mentioned at the end of the presentation, quantitative or qualitative. What I mean by equity fundamental arbitrage is alpha generation resulting from inconsistencies or imbalances between the market value and the equity value of a company. We can measure these imbalances and inconsistencies in reference to a static number or in reference to comparable companies. So if we have a PE ratio, price to earnings ratio above a given threshold, we would deem the stock overvalued. But if one firm's PE ratio is above another firm's PE, then the first stock is deemed more expensive than the second. What we call relative value analysis here is exactly that. It's a peer to peer analysis. Now when I started to work on a similar project 10 years ago at Société Générale, I had just graduated from college and I had a real obsession with applied mathematics and financial models in general. And I took the components of the S&P 500, I was using fax set at the time, I'm not promoting fax set here, but I had easily over 10 years history and I thought now that I had every input I could hope for, everything I need to do is concentrate on theory. And I was of course very wrong and whatever the project data control is 80% of the job. Now equity fundamental arbitrage cannot be conceived without a thorough understanding of both the disclosure process and the nature of the firm's financial statements. Any meaningful approach in equity is a pragmatic approach. We need to understand how material information is disclosed, when it is supposed to be disclosed and how to read it. So if the rules of disclosures are different, data will most likely be different. Equity under IFRS is defined differently from equity under US GAAP. So data integrity has a legal and regulatory aspect here that I explore through the accounting treatment of defined benefit pension plans. Once all disclosure rules and market rules are accounted for, I can factor in my own rules to eventually design a systematic strategy. So I'll go through the specifics of the residual income model as presented by Gebart in 2001 and then I will describe the calibration performed by Fama in French. I will discuss a simpler model and a different approach for its calibration, one that is adapted for a relative value analysis. Finally, I will test the robustness of our scoreings, discuss briefly the challenges of a smart beta allocation and in the end challenge the results. So throughout this presentation, I will complete the strategies profile, its objectives and constraints. You can see here, we have the two standard objectives of return and risk and four investment constraints, time horizon, liquidity constraints, legal and regulatory and unique circumstances that are really specific to equity shares. So far, I have my return objective of consistent alpha generation through statistical analysis of financial statements and data in general. So let's fill in some more of the investment constraints first. Increasing stocks requires rigor, especially if you are engaging in long-short or market useful strategies. Execution is an essential part of the process. Well, good news first, brokerage fees and transaction fees in general have dropped by half these last few years due mostly to an increasing competition among brokers and prime brokers. But anyone who has traded stocks or stock derivatives knows that trend following strategies can suffer high implicit costs, high slippage costs. A trader can spend hours chasing a price and in the end these costs might offset any expected benefit. So designing liquidity provider strategies rather than trend following strategies is always a better option when dealing with stocks. And by liquidity provider strategies, I mean mini reverting strategies. We also know that shorting a stock close to a corporate action right after an IPO can be highly expensive, not to say sometimes impossible. Borrowed costs can persist at high levels, sometimes more than 50%, months after an IPO. The recent Groupon or Facebook IPOs are proof of that and there was an extraordinary high demand for these stocks. But in current markets and in standard market conditions more than 90% of the total return swaps imply borrow costs significantly below 2%. We also have legal constraints generating market imperfections such as the optic rule on the Japanese markets or the short selling restrictions on financial stocks in the midst of the crisis in 2008. Finally, it's important to consider account margin requirements for an optimized cash management. At best and here because we are not dealing with event driven strategies we should avoid critical firms and low level stocks that are more exposed to potential short squeeze. Now all these market specifics make investors reluctant in operating with equity shares. They are among the reasons why strategies and indices defined as fundamental arbitrage have mostly failed. Now for liquidity constraints I can fill in here my constraints, I'm better off looking at the float or the trading volume rather than the market capitalization and I am looking for liquidity provider strategy rather than a mean reverting strategy. For unique circumstances we should pay attention to borrow costs and account margin requirements, we should also avoid critical firms and speculative stocks. Now note that I entitled the first subsection a control disorder for all the reasons that I have mentioned so far and for more reasons that I will mention later. I will try to bring some measure of control to this disorder and eventually lay out the steps towards a systematic investment solution. Now apart from market considerations a large portion of this disorder is explained by the release of material information on earnings announcement dates. Some other portion is explained by unscheduled release of material information such as profit warnings and results guidance. Now before playing the game and it's a large scale game over thousands of firms we absolutely need to go through the rules. We are working on the design of a systematic strategy and a systematic strategy is based on the rules, the existing rules and your own compatible rules. Now most existing rules are obviously set up by the SEC for the US market and by the relevant authorities in Europe. Now the first simple rule defines three categories of filers depending on their public foot. A firm with a public foot above $700 million will file the annual 10K within the deadline of 60 days after the end of the fiscal year and the quarterly 10Q reports within 40 days after the end of the quarter. These firms are referred to as a large accelerated filers. Now for accelerated filers with a public foot below $700 million and above $75 million, the firm must file within 75 days for the 10K annual filings and within 40 days from the end of the quarter period. Now obviously the SEC applies larger deadlines for lower public foot because the filing deadline is a constraint and like any constraint it comes at a cost. A fixed cost that doesn't seem to be justified by the benefits that investors would obtain from earlier access to the reports. I invite you all to read the December 2005 revisions to the accelerated filer definition and accelerated deadlines for filing periodic reports. You'll find there a complete cost-benefit analysis. Now apart from the 10K and 10Q periodic reports we have current 8K filings that are more generally produced to disseminate material information to the public in a timely manner. Now a firm must file the 8K within four business days of the event's occurrence. You can refer to the general instructions included in any 8K or you can refer to the Code of Federal Regulations CFR for all details on reporting requirements. The Code of Federal Regulations lists nine sections that cover 31 items and each item is a reportable event. Now among these items we have a particular interest in item 2.02 results of operations and financial condition and item 9.01 financial statements and exhibits. Most of the accounting data we need is already disclosed there within a few business days of the announcement. Now it is completed by the full quarterly and annual reports available within two months from the end of the quarter period or the end of the fiscal year. Now gathering what I have mentioned so far this is how the schedule looks like. It's a simple schedule. I have the end of period, I have my 8K filed at the announcement date, I have the quarterly and annual 10Q and 10K filings at deadlines depending on the firm's float. Now even though data included in the 8K is sometimes incomplete or limited it can be completed with information disclosed at the conference call or on the firm's website. It can also be in the most extreme cases extrapolated or estimated. I'm thinking of equity and cash flow from operations and so on. Now why is this so important? We are looking to managing a portfolio of stocks selected among thousands of companies. I would like a practical way for detecting when my data for a company is outdated or when this data is due so I can actually optimize the decision making process. I can automate all I can to concentrate my efforts on risk management and execution. So far if we leave it this way it's not too bad. To spice it up a little bit there is always in every game at least every interesting game a tricky section to the rules and this section here is about restatements and reclassifications. Now financial statements are restated if there is a material inaccuracy in a previous filing. Anyone can make mistakes when finding financial statements and this is of course accounted for in the rules. Now in practice setting up the right filters and warnings could save the day and this is after all a matter of specific or operational risk management. We can take action as soon as the correction becomes public information. We can even take action immediately for the most obvious mistakes. Now financial statements are also restated for a change in accounting rules when this change requires retrospective application. We have also restatements to account for mergers and spinoffs when the nature and size of the firm might change drastically in which case the firm should disclose a history that is coherent with its business and financial status post merger or post spin off. All restatements and disclosures are included in the 10QA, 10KA and 8KA filings. Now for discontinued activities both original statements and restatements are disclosed in the same filing.  We will have reclassifications into change in net income from discontinued activities and cash flow from discontinued activities. Now a quick word on Europe. We have similar rules for European countries and firms reporting under IFRS. The policies convergence falls within the jurisdiction of the European Securities and Market Authorities the ESMA that was established in Jan 2011. Now ESMA is also working with the network of officially appointed mechanisms the OAMs for the central storage of regulated information. I have reported here some deadlines for France, Germany and Spain for the annual semi annual and quarterly filings. Now politics aside the harmonization takes time like pretty much anything in Europe. But if we take for the US case at least if we take everything we've mentioned so far this is how the final schedule looks like. Now 8K filings are followed by the filing of periodic reports the 10Q and 10Ks is a firm can't file before the deadline. It must notify the SEC through NT 10K and NT 10Q filings. I have pictured here two periods with the end of period EOP1 and EOP2. On the second period we might have restatements of previous filings and we also can have transition reports the 10QT and 10KT filings whenever there's a change in the fiscal year. Now imagine thousands of schedules like this one. One for each reporting firm with the end of periods do not necessarily match. Now that's what we can call a control disorder. So going back to our objectives and constraints we can fill in here the legal and regulatory constraints. I mentioned here systematic compliance to rules and regulations. Now I can hear your minds whispering. Why do we bother looking to the past? Why bother with restatements? After all I have the firm's guidance, I have a market consensus for earnings and we all know here that the market is all about expectations. Well I'd like to raise two questions. First question, how reliable is the firm's guidance for firms forward looking statements more specifically when it reflects the short-term horizon? It turns out there is an actual trade-off between short-term transparency that come with lower volatility, lower uncertainty and the drawbacks of the management that favors fast short-term profits over more profitable long-term projects. The pressure to disclose an exciting guidance for the short-term might come at the expense of a long-term performance. Now we've known for a while that there is no evidence whatsoever of any return upside to shareholders from issuing frequent earnings guidance. And this is why Google, Coca-Cola, Costco do not provide guidance more and more or reconsidering the benefits of providing guidance of short-term transparency in general as it makes these firms vulnerable to speculators. My second question is, how reliable is the market consensus when the analyst coverage is scarce? I should expect more opportunities on low coverage names. After all, high competition goes with low margin, low profit margin, sorry. So whenever competition is low, I must try to challenge the so-called consensus. Now overall, I would like an analysis that is free of any consensus bias, free of any limitations due to coverage. I need flexibility in treating new information so I can feel comfortable trading my portfolio not having to rely on black boxes. And to get there, I need to account for all potential result scenarios. I am hoping to assign a probability for each scenario given the firm's current financial health. If a scenario were realized in the past for a different firm but in the same industry and with a similar financial health then I should expect a higher probability to see this same scenario happen again. So I would like my model to learn from the history of comparable firms. In single terms, I need a cross-sectional sequential learning model, sorry, just one last word. This is why we need clean data. This is why we need a clean history and by clean, I mean coherence and I wish to avoid having for a firm both post-merger and pre-merger accounting data in the very same observation or using past revenues or predict future earnings failing to account for any discontinued business. Now after reading the game rules, it is never a bad idea just to watch a few rounds before taking a seat. So let's review here one case scenario which is the treatment, the balance sheet treatment to be exact of defined benefit pension plans. This is a recent change in accounting policies regarding the IFRS framework. One objective for this amendment is to align the balance sheet effects with those reported under US GAAP and part of the policies convergence. Now the treatment was revised in 2011 and the change was effective last year on Jan 2013. Of course what makes it interesting here is that this change requires retrospective application. I will quickly explain the basics of accounting. A plan is initiated by a contract offered by the firm to its employees. The firm records on its balance sheet a defined benefit liability or asset depending on the fund status of the plan. The defined benefit liability is the present value of the defined benefit obligations due by the firm towards its employees, mentioned here as DBO, less the fair value of the plan's assets. Now you can see here a synthesized pension plans balance sheet, the fund is legally separate from the firm and its sole purpose is to fund the employee benefits as specified by the contract. Now the present value of the DBO depends on various factors. I will just mention two here. The first one is the change in actual assumptions used to value the pension plans liabilities such as life expectancy or the discount rate. The discount rate is the discount rate used to discount the annuities. Now the discount rate is typically the implied interest rate of high quality corporate bonds. However, interest in assumptions can be revised and this revision will produce an actual gain or loss. Now there is also a dependency on plan amendments when moving from a defined benefit pension plan to a defined contribution plan, a dependency on plan curtailments when there is a significant drop in the number of employees covered by the plan and so on. Plan amendments and curtailments are defined as past service costs. Now these two effects can have very large impacts on the DBO and if they were directly recognized in the balance sheet in the firm's liabilities this could drive the balance sheet's volatility upwards. So a high volatility in the balance sheet is not something we're looking for. It could undermine the investor's trust in the reported figures. So before revisions firms were allowed to record these effects of balance sheets and the impact was subsequently and slowly recognized as an expense if their cumulative amount exceeded 10% of the plan assets. Now it turns out that many firms were actually deviating from the original purpose of this mechanism and recorded off balance sheets to delay their losses to equity and this way should have better financial leverage. Now the recycling methods and what is referred to as the 10% corridor methods is abolished with the new standards and since 2013 there is no amortization of actual losses or past service costs. These are immediately recognized in equity. Actual losses are recorded under a new item called remeasurements in other comprehensive income and past service costs are recognized in net income. Now take the Daimler case. Daimler has found the asset with a total value of 12 billion euros in 2012. Now the plan is underfunded. You can see here a negative 9.7 billion for the funded status. It had close to 8 billion of actual losses recorded off balance sheets. They were amortized slowly at the rate of roughly 150 million a year. In 2013 these actual losses were reclassified as remeasurements in other comprehensive income, net off taxes of deferred tax assets to be exact, which amounts to 6 billion euros. It's minus 8 and plus 2 over there. So 6 billion euros over 45.5 is roughly 13% of the total equity. Now furthermore the new standards removed any amortization of the actual loss that used to be recorded in net income. Now this had a positive impact on net profit, 29 minus 13 million for taxes, for a total of 16 million profit for the last quarter of 2012. Now obviously after revision, Daimler showed a slightly higher return on equity, a much lower comprehensive income, and a much higher financial leverage. Now if all ratios were affected equally across firms, my ranking would remain unchanged. Well it turns out that we have discrepancies across companies and more certainly across countries. For example, defined benefit pension plans are more frequent in France and Germany, and defined contribution plans are standard in the US and the UK. Regulations are also different. Germany allows for partial retirement agreements between management and employees when other European countries don't. So we've discussed the matter of data coherence between countries and firms. We have yet to discuss the matter of data coherence between market and accounting data. Well for example, if you have a second Republic offering, this second Republic offering will raise the equity value of a firm and the number of shares are sending at the same time. So in this case we would have a PE ratio, price to earnings ratio that is more or less unchanged, and the return on equity that should be lower. Now all these incoherences that I've mentioned so far might have dangerous implications for any systematic analysis. Whenever for example, training ratios are involved or for the calibration of a regression if momentum are used as regressors. Now if we get back to the Daimler case, we have our quarterly observations here piling up. We need to take four coherent consecutive quarters to annualize our flow data. Flow data consists here of net income. Income before a surgery item says cash flow from operations. Any item included in either the income statement or the cash flow statement. And these are opposed to stock variables such as total assets, shareholder's equity, all the items included on the balance sheets. Now we introduce here the concept of effective data. Now we mentioned that restatements are only available as of the beginning of 2013. So March 2013 will be my effective end of period. So for any information included in the amended filings, this information will be fully available as of March 2013. Now this means that all the lines highlighted in blue will be our four amended consecutive quarters. The four lines that will produce my adjusted data. Now the concept of effective dates will help mitigate any look ahead binds. It's very useful for simulations. I am only using here the information that I can see as of the reference dates that I choose, any reference dates in the past. Now let's play together and create our own exiting rules. I am looking to synthesize both market and accounting values of equity into one single variable, a score for each firm. The residual income model does so very nicely. The market and accounting information is synthesized into the equity cost of capital. Now the residual income model supports that the value of the present value of a company equals the present value of the current value of a company equals the present value of future excess earnings over the cost of equity capital. Now if you assume all future earnings to be value neutral starting as soon as next year, which means that the return on equity quickly declines to the cost of equity capital, then the cost of equity will exactly reflect the earnings to price ratio, the earnings yield ratio. It is exactly the inverted price to earnings ratio. Now Gebart in 2001 assumes that future excess earnings converge towards a neutral value represented by the industry mean. Now this convergence is assumed to be achieved in year 12. He predicts the one and two years ahead return on equity and assumes that this return on equity will fade slowly after the third year towards an industry mean. Now how far exactly should you predict the firm's earnings? Well the answer depends on the objective that we hope our model will achieve. And this objective is one or two years ahead forecast of the ranking of our stock performances. Lastly, if I am looking to produce a ranking only within the same industry, I don't really need the model to account for the concept of an industry mean. I don't need to complexify my model. Now this is not 100% true but this is another story. Now if we look at the earnings residual model through the eyes of Fama and French, this model emphasizes the mutual dependency between the firm's profitability represented by the return on equity, the firm's market value represented by the price-to-book ratio and the firm's propensity for reinvesting its earnings represented by the equity growth. And these dependencies are reflected by the cost of equity capital that is here, the required return on equity for a shareholder. Now the residual income model supports three relationships. First relationship, holding everything else constant, the required return on equity should increase with profitability. Second relationship, holding everything else constant, the required return on equity should decrease when market value increases. So one on top. And finally, the final relationship is based on the fact that earnings are either reinvested in the firm's project or distributed to shareholders. So increasing the level of reinvestments without any positive prospects on profitability nor market value for the shareholder should drive down the required return on equity. In this case, distributing dividends for the firm should be more, for the shareholder, it should be more interesting than reinvesting the earnings. Now we can observe the equity market value within regular trading hours. So we will need to predict the return on equity and the growth in the book equity. Now the forecasts are produced by, we mentioned this earlier, a cross-sectional model. This cross-sectional model uses as factors the earnings quality, profits distribution, revenue, size, operating and financial leverage for all the firms of our universe. Now we are going to simplify this model to the point that all we need are the one and two years ahead forecasts of the return on equity. I didn't mention it here, but we could use also macro and external factors in our cross-sectional model. So simplifying the setups suggested by Gebart, Fama and French is a luxury that we can afford because we are adopting a relative value approach. If I am looking to compare firms within the same industry, I need only discriminant factors within this industry.  These firms will belong to the same sector and will abide to the rules and regulations of the same country, at least when it comes to reporting requirements. Now these are strong assumptions, but still reasonable given what we are expecting from this model, which is an apples-to-apples relative value analysis for the year ahead. Furthermore, remember that we assumed all earnings to be either reinvested or distributed to shareholders. Now the clean surplus hypothesis, holds that the growth of book equity is completely explained by the earnings and the dividends distributed. Now if you assume like Gebart that the dividend payout ratio is constant in the future, then we have the growth of equity that is completely determined by the one and two years ahead return on equity. So as promised, this is what we have left. One year ahead and two years ahead return on equity to a forecast. Now a word on the calibration. The timing of observations matters if we are considering panel models. If periods covered by the income and cash flow data were assumed to be exactly the same, perfectly aligned quarter to quarter, then panel models would be ideal. Now the major advantage of panel models lies in the detection and treatment of autocorrelations in the editor. Basically we can theoretically detect whenever the model is better specified as a moving average. Now panel models allow also for the treatment of seasonality. Now the perfect alignment of observations could be achieved by altering the original data using data interpolation or the so-called calendarization techniques. Now the calendarization process is a simple idea to begin with. I have my end of periods in February, May, August and November every quarter and I would like to produce data estimates for the standard quarters ending in March, June, September and December. Now the thing is working with estimates instead of actual data is never an easy solution. I'd like to avoid that here. So I will concentrate my efforts on the simple cross-sectional model and use momentum regressors to remove potential autocorrelations in their return. Now basically you can refer to the first chapters of full-reach, a book entitled Econometrics of Cross-sectional and Panel Data. You'll find there a discussion of the benefits of momentum in improving the model specifications. By the way, a full bibliography is available at the end of the documents. Now Fama and French used annual data from the 10K findings from beginning of July to end of June to calibrate the model and predicts one, two and three years ahead returns on equity. You can see here predicts T plus one, T plus two, T plus three forming an observation. Our calibration, on the other hand, is performed on every results announcement date or a few business days later. Now whenever new information is acquired we are taking as a reference the last end of periods available and moving backwards this is the last end of periods and we're moving backwards to collect all data and again the predictive T plus one will form one observation and so on and these observations are used to calibrate our cross-sectional model. Now every newly acquired observation for one single firm will impact the calibration. So if it impacts the calibration it will also impact our forecasts for all the other firms of our industry. This is the sequential learning property of the model. Now once I have my estimates for the cost of capital I take an active long position on the highest and a short active position on the lowest ICCs. ICC is meant for implied cost of capital here. I choose to test here the ranking quality for 40 long positions and 40 short positions against the realized returns and to do so I have rank correlations. One classic ranking correlation is the Spearman rule the first one mentioned here. We also have the Kennel Tower. Basically I'm assigning to the same to the 41st ICCs the same value of 40 plus one over two which is 20.5 and I assign the same rank on the 40 highest ICCs. 2 times n minus 39 over 2. The highest correlation is reached 57% of the time within the first three months from the estimation. You can see here this is the daily average correlations that are at a peak when volatility is high in 2008 and here 2011. The maximum correlation one more thing this is the level of significance for a single correlation which is around 10%. It depends on the size of your sample. Here I have this is a technology sector so I have roughly 200 firms in my sample after filtering. This is the maximum correlation which is reached very often within the first 25 days at 15 to 20%. That's the correlation that we are looking to buy here. The strategy is mean reverting so the higher the correlation the better our hope to generate alpha. We are long correlations. We are done. We still need market risk management framework. Here I have completed the risk objective. I mentioned small beta allocation diversification and specific risk control. The terms small beta in small beta allocation cover a wide range of procedures. Every problem that accounts for a measure of risk of high variance volatility and correlation qualifies for many as small beta. I would have liked to catch your attention on some of the main challenges here for the allocation but I will have to pass because we are a little bit short of time but you can see here on this slide the back-testing results for the technology sector in dashed blue index. The NDXT is in dashed red and in light blue, dark blue and green we have the distribution of the cost of equity capital. We can see in 2008 that the cost of capital have reacted with months of delay to the crisis. Again we cannot expect the model to focus macroeconomic events but we can hope like in 2008 and 2011 that it would capture and profit from high volatility periods. Whenever we see high discrimination between stocks. Now I have reported here also this is the last slide a sector neutral simulation on all US names. It's a reachable target, it would be interesting to see how a long-only version with same sector weights as a classic benchmark performs. The source Hino is decent and the draw down is here to remind us that we are dealing with stocks so always highly risky. It happens here in the crisis. These are distributions per sector liquidity and capitalization I will let you analyze that on your own. Thank you very much, unfortunately time is always too short and I hope this presentation gave you at least an idea of the challenges of systematic management for equity shares. Are we now answering any questions that you might have? Any questions? Yes? Yes, it turns out recently recently Yes, basically she's asking how we could retrieve the financial information from statements knowing that basically it's an exhaustive process. It seems like an exhaustive process and it is actually, but the thing is recently the SEC asked for the firms that were to report their findings to add an XBRL file XBRL extensive business so basically you can do it, it's possible, it's a lot of work I've worked on it, but it's a lot of work and you can actually work on some mappings for any given firm you will have mostly the same items that we find in the statements on a smart mapping you can directly retrieve this information otherwise you have providers like Edgar, but of course they will give you the information once you have the 10Ks or 10Q reports there is always because the number of information we need the number of variables we need is very limited especially for this model I need a dozen of variables so I can maximum add them manually once I have my 8K I hope this is satisfying any other question? I know it seems extremely theoretical and can be very complicated for people who didn't go into statistical models I mean I hope I gave you at least an idea of what we can achieve here everything that I mentioned is really inspired by the work of Fama in French and the work of Gebart initially but I pushed it towards relative value it's not about getting an absolute level for the equity premium but getting a relative value with respect to the same stocks of an homogeneous universe, that's the idea well I think this is very much CFA stuff so if that's not something that you would like to do let's give you a round of applause I was particularly pleased that you mentioned XPRL as well the Extensible Business Reporting Language under President of the Swiss XPRL through Restriction so that's one thing that we should definitely push for even though XPRL in Switzerland is very much an actor issue due to the low-key interest of issuers who just see it as an additional obligation and the Stock Exchange also is not really very keen on pushing for that because of that because Stock Exchange as you all know is a member of the association and if some of their members actually push against that and see it as an obligation they will also be somewhat reluctant to adopt it so thanks thank you very much thank you