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Euro Erases Drop Versus Dollar, Trades Little Changed at $1.3348.The euro erased its decline against the dollar, trading little changed at $1.3348 as of 2:46 p.m. in London. To contact the reporter on this story: Daniel Tilles in London at [email protected] To contact the editor responsible for this story: Daniel Tilles at [email protected] |
Freddie Mac to Redeem 1.5% Notes Due 2014.The following issue is being redeemed via the company's call option: Issuer: Freddie Mac Coupon: 1.5 percent Maturity: April 14, 2014 Redemption Amount: $250 million Redemption Price: 100 percent Amount Remaining: Fully Retired Security ID: US3134G2CY69 Effective Date: Oct. 14, 2011 |
Kuwait Has 8.2 Billion-Dinar Budget Surplus in First 5 Months.Kuwait had a preliminary budget surplus of 8.2 billion dinars ($29.6 billion) in the first five months of the fiscal year ending March 31, the Finance Ministry said. Income was 11.89 billion dinars and spending 3.74 billion dinars, according to data posted on the ministry’s website today. By law, 10 percent of revenue is saved in the Reserve Fund for Future Generations. Oil revenue was 11.34 billion dinars in the same period, the data showed. To contact the reporter on this story: Fiona MacDonald in Kuwait at [email protected] To contact the editor responsible for this story: Shaji Mathew at [email protected] |
U.S. Aug. Single-Family Home Price History.Following is the monthly transaction based price changes for single family homes, attached and detached, in the U.S. from First American CoreLogic, LoanPerformance HPI. Source: First American LoanPerformance HPI To contact the reporter on this story: Alex Tanzi in Washington at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
French Expansion to Stall in Fourth Quarter, Insee Predicts.The French economy will probably stall in the fourth quarter after expanding 0.3 percent in the previous three months as investment and job creation falter, national statistics office Insee forecast. Europe ’s debt crisis “has created a shock to the real economy and is affecting growth,” Insee economist Sandrine Duchene told reporters in Paris. “Investment and employment have been the two engines of France ’s recovery so far and both are going to slow between now and the end of the year.” Gross domestic product may expand 1.7 percent this year, in line with the government’s prediction, Paris-based Insee said in a report today. GDP stalled in the second quarter after growing 0.9 percent in the first three months. Consumer spending may rise about 0.5 percent and 0.3 percent in the final two quarters of the year, according to the report. “The only support for the economy is household spending, which should rebound in the third quarter after a downturn in the second,” Insee said. “The savings ratio of French households is likely to be maintained.” About 24,000 jobs will be created by French companies in the second half, down from 112,000 in the first, Insee said. Unemployment is set to increase to 9.7 percent, from 9.6 percent at the end of the second quarter, Insee added. Investment by non-financial companies will probably increase 0.3 percent and 0.1 percent in the final two quarters of the year, compared with gains of 1.9 percent and 0.3 percent in the first and second quarters, Insee predicted. To contact the reporter on this story: Mark Deen in Paris at [email protected] To contact the editor responsible for this story: Craig Stirling at [email protected] |
Nobel Jury Blows It Again With Obscure Swedish Poet: Commentary.Literature’s newest Nobel laureate is widely read, reviewed and respected. In Sweden , that is. Despite having been translated into more than 50 languages, poet Tomas Transtromer is best known internationally as one of those arcane names that draw perennial bets from Nobel-watchers fond of mocking the Swedish Academy. It’s not that the 80-year-old Swede isn’t a good poet. He may even be a great one. As Brooklyn-based novelist Teju Cole tweeted just hours after the announcement, “To read Transtromer is to surrender to the far-fetched. It is to wake up in the middle of the night and listen to what the house is saying.” Yet his victory does nothing to restore the standing of a prize whose decisions have increasingly courted accusations of Eurocentricity, political motivation and anti-Americanism. Having doubled as a professional psychologist for much of his life, Transtromer has a slender oeuvre. As Peter Englund, the academy’s permanent secretary, said at the Stockholm press conference, it could fit into “a not-too-large pocketbook.” This shouldn’t matter. As many novelists fail to grasp, quantity has zero bearing on literary quality. Nevertheless, it seems bound up with the Swedish Academy’s apparent passion for the esoteric. Then there’s Transtromer’s Swedish nationality. Though almost 40 years have passed since the academy last rewarded a homegrown author, Europeans have long dominated. It’s beginning to seem provincial. Isolated, Insular Back in 2008, Englund’s predecessor, Horace Engdahl, notoriously accused American literary culture of being “too isolated, too insular.” A week later, the award went to another European unknown, France ’s Jean Marie Gustave le Clezio. This was tipped to be poetry’s year, and Transtromer is the first poet to win since Wislawa Szymborska in 1996. However, you have to peer even further back to find the last U.S. victor, Toni Morrison , who won in 1993. At this point, it’s tempting to ignore the antics of a secretive few in Stockholm. Yet the fact remains that the Nobel Prize in Literature captures the global gaze like no other award. In its perverse preference for authors obscure, politically correct or downright unreadable (all three in the case of Elfriede Jelinek ), it not only damages its own authority, it marginalizes the art it claims to fete. While prizes can play a part in broadening our horizons, that is not the Nobel’s job. In anointing greatness, the Swedish Academy has the opportunity to celebrate the vitality of the written word and highlight its enduring centrality to life in the 21st century. Philip Roth Of many overlooked authors from Umberto Eco to Ismail Kadare, Philip Roth’s is the name most frequently invoked. Despairing fans have cited the Nobel’s goal of rewarding “outstanding work in an ideal direction” -- whatever that means -- and used Roth’s relative lack of political engagement as an excuse for his repeated snubbing. Transtromer’s victory blows that argument out of the water. Assuming Roth is condemned to the illustrious ranks of writers spurned by Stockholm -- including Joyce, Proust and Nabokov -- here is an alternative suggestion for next year’s prize: Margaret Atwood. It’s hard to think of another author so accomplished, original and engaged with our changing world. She would become only the 13th woman to claim this prize since it was inaugurated in 1901. Oh, and it probably can’t hurt that she’s Canadian, not American. (Hephzibah Anderson is a critic for Bloomberg News. The opinions expressed are her own.) To contact the writer on the story: Hephzibah Anderson in London at [email protected]. To contact the editor responsible for this story: Manuela Hoelterhoff at [email protected] . |
Del Monte, Barclays Pay $89.4 Million to Settle Suits Over Private Buyout.Del Monte Foods Co. and Barclays Plc (BARC) agreed to pay $89.4 million to settle investor lawsuits over the buyout of the pet-food maker by a group of private-equity firms led by KKR & Co. Investors in Del Monte, maker of Meow Mix cat food and Milk Bone dog biscuits, will get at least 30 cents more a share to resolve claims they weren’t paid enough in the $19-a-share buyout, Stuart Grant , a lawyer for the investors, said today in an interview. A Delaware judge must approve the accord before it becomes final. “Del Monte has entered into the proposed settlement to eliminate the uncertainties, burden, and expense of further litigation,” the San Francisco-based company said today in a U.S. Securities and Exchange Commission filing. The companies denied any wrongdoing under the accord. The settlement also resolves investors’ claims that London- based Barclays, which served as Del Monte’s financial adviser while providing some financing for the buyers, had conflicting interests in the $5.3 billion deal. The private-equity group led by New York-based KKR included Vestar Capital Partners and Centerview Partners LLP. Barclays was paid $23.5 million to advise Del Monte and as much as $24 million for providing loans to the buyers, according to investors’ suits filed in Delaware Chancery Court in Wilmington. ‘Best Price’ “We are pleased that the parties have agreed to settle the litigation to avoid the expense, distraction and uncertainty of litigation,” Kerrie-Ann Cohen, a Barclays spokeswoman, said in an e-mailed statement. “We believe that the sale process leading up to the merger achieved the best price reasonably available for Del Monte stockholders.” Kristi Huller, a KKR spokeswoman, and Chrissy Stengel, a Del Monte spokeswoman, both declined to comment on the accord. Barclays rose 12.4 pence, or 8 percent, to 167.85 pence in London trading today. KKR climbed 20 cents, or 1.9 percent, to $10.59 in New York Stock Exchange composite trading. In February, Delaware Chancery Court Judge Travis Laster ordered Del Monte to delay a shareholder vote on the deal so investors could consider whether to back it in light of disclosures about Barclays’s dual roles. ‘Big Whipping’ “Barclays took a pretty big PR whipping over this case, so I guess they may have wanted to settle to get this off the radar screen,” Larry Hamermesh, a professor at Widener University’s law school in Wilmington who specializes in corporate law, said in a telephone interview. Laster’s ruling has dissuaded Barclays and other investment banks from offering so-called sell-side financing for public buyouts, he said. “They don’t want any other judges examining whether there are potential conflicts in these deals,” Hamermesh said. Since the Del Monte opinion, no firm has offered sell-side financing for a U.S. public company buyout valued at more than $1 billion, according to data compiled by Bloomberg. In the previous 2 1/2 years, it was offered about 40 percent of the time for deals of that size. At least nine major investment banks, including Barclays, have reviewed their lending practices, people familiar with the matter said last month. They declined to be identified because the discussions are internal. ‘Added Premium’ Randall Baron, one of the lawyers who represented an Illinois-based pension fund that challenged the Del Monte buyout, said the settlement “delivers to Del Monte’s shareholders the added premium they rightly deserved.” “We are gratified that our litigation sparked a pullback among the major banks from advising parties on both sides of a transaction,” Baron, a partner in the San Diego-based law firm Robbins Geller Rudman & Dowd, said in a statement. Del Monte will pay $65.7 million of the settlement while Barclays’s portion will be $23.7 million, according to the statement. Del Monte’s portion of the settlement includes more than $20 million in fees it owed to Barclays for work done on the buyout, according to the pension fund’s lawyers. Investors’ legal fees will be covered as part of the settlement, Grant said. Laster will decide how much the attorneys will receive from the $89.4 million fund. The accord “is a great result for stockholders, not only those holding shares in Del Monte, but all public equity holders of companies facing M&A transactions,” said Grant, a partner in Wilmington-based law firm Grant & Eisenhofer. Investor Suit Some Del Monte shareholders sued in December seeking to stop the KKR-led buyout, claiming the deal was structured to discourage other offers. Shareholders also alleged Barclays executives deceived Del Monte officials about the bank’s dual role in the deal. Lawyers for Barclays countered in court filings that there was no evidence the bank’s status as one of nine lenders involved in the acquisition compromised its officials’ objectivity in evaluating the deal’s fairness. Del Monte investors approved the KKR-led buyout in March. Of shareholders who took part, 99 percent voted in favor, Del Monte said. The buyout gave the KKR group access to Del Monte’s pet- food business, which has more than doubled sales in the past four years. Del Monte also sells packaged fruits and vegetables and Contadina canned-tomato products. The case is In re Del Monte Foods Co. (DLM) Shareholder Litigation, CA6027, Delaware Chancery Court (Wilmington). To contact the reporters on this story: Jef Feeley in Wilmington, Delaware, at [email protected] ; Phil Milford in Wilmington, Delaware, at [email protected]. To contact the editor responsible for this story: Michael Hytha at [email protected] . |
Slovak Party EFSF Deal Hinges on Committee to Study Disbursment.Slovakia’s ruling-coalition party Freedom and Solidarity has prepared a proposal that may allow parliament to approve an overhaul of the euro-area’s bailout mechanism, said Daniel Krajcer, a party deputy chairman. The plan will be presented today at a coalition meeting, Krajcer, who is also Minister of Culture, told reporters today in the capital Bratislava, without elaborating. The plan would create a special committee in Slovakia that would decide on any disbursement of funds from the European Financial Stability Facility, Most party official Bela Bugar told reporters today. SaS, as the party is known, will back the motion in a parliamentary vote on Oct. 11 if its condition is met, Sme newspaper reported today, citing Jozef Kollar, the head of SaS’s parliamentary caucus. To contact the reporter on this story: Radoslav Tomek in Bratislava at [email protected] To contact the editor responsible for this story: Douglas Lytle at [email protected] |
NATO Chief Rasmussen Says ‘End Is in Sight’ for Alliance’s Libya Operation.NATO is near to concluding its mission in Libya as transition forces stamp out the remaining resistance of Muammar Qaddafi , alliance Secretary General Anders Fogh Rasmussen said. “It’s clear that the end is in sight,” Rasmussen told reporters today after a meeting of defense ministers of the 28- member North Atlantic Treaty Organization in Brussels. Loyalist forces in Libya “are fighting for a lost cause. The threat to civilians is fading away. The recent positive developments in Libya are irreversible,” he said. NATO is winding down its six-month air campaign over Libya as National Transitional Council forces tighten their control over the country, even as Qaddafi remains at large after the toppling of his 42-year rule. Interim government forces are closing in on loyalists in Qaddafi’s hometown of Sirte on the Mediterranean coast and in Bani Walid, backed by air strikes from NATO warplanes. Alliance defense ministers discussed the conditions that must be met in Libya before NATO ends the mission. They were joined by U.S. Defense Secretary Leon Panetta , attending his first meeting with NATO counterparts. Panetta said three factors would determine when the mission ends: resolving the conflicts in Sirte and Bani Walid, whether Qaddafi retains power over loyalist forces and the NTC’s ability to maintain security. Panetta is due to meet NATO military commanders at the mission’s headquarters in Naples, Italy , later today. “The decisions there will depend a great deal on the recommendations of our commanders,” Panetta said. Focus on Economy The NTC has been working to stabilize the Libyan economy and establish authority over factions that rebelled against Qaddafi. The formation of an interim Cabinet has been postponed several times since NTC forces took the capital Tripoli in late August. Libya aims to raise crude oil output to more than 500,000 barrels a day by the end of this month, Nuri Berruien, the chairman of state-run National Oil Corp., said this week. He said the country’s goal of restoring crude production to 1.7 million barrels a day within 15 months is a “conservative figure.” NATO has flown more than 25,000 missions over Libya since it took over the mission on March 30. Yesterday’s strikes included eight targets in Bani Walid, the alliance said today. “We’re determined to pursue our operation as long as threats persist, but to end it as soon as conditions permit, so we stand ready to terminate the mission when political and military conditions are fulfilled,” Rasmussen said. That time “will come soon.” UN Lead Rasmussen reiterated he doesn’t foresee a major NATO role in Libya once the operation is terminated and that it would be for the United Nations to take the lead. NATO would be open to requests for security assistance from Libya’s new government, the alliance chief said, adding that reports of a humanitarian crisis in Sirte and Bani Walid are “a matter of concern.” Panetta said that “if there’s a request, if there are needs that can be met, all of us in NATO would have to give that serious consideration.” Rasmussen expressed caution about the new authority’s progress in Libya, citing threats to security. “I’m not naive,” Rasmussen said. “Of course we might see extremist groups try to take advantage and exploit the situation in Libya. The more important is that a transition to a stable and sustainable democracy takes place as soon as possible.” To contact the reporters on this story: Patrick Donahue in Brussels at [email protected] ; Viola Gienger in Brussels at [email protected]. To contact the editor responsible for this story: James Hertling at [email protected] . |
Katainen Says EU Banks Should Seek Capital in Markets First.Finnish Prime Minister Jyrki Katainen said Europe must make sure that its banks are sound, urging them to seek private capital first before falling back on government aid. “We have to make sure that in this market pressure the financial institutions are sound,” Katainen said at a press conference with European Commission President Jose Barroso in Brussels today. “Europe is full of good and sound banks but they are suffering from the uncertainty.” To contact the editor responsible for this story: James G. Neuger at [email protected] |
Vietnam Bonds Gain as Slower Inflation Spurs Banks’ Demand.Vietnam ’s government bonds advanced, pushing their yield to the lowest level since May, amid speculation banks are pouring more funds into the securities as inflation eases. The dong strengthened. Consumer-prices increased 22.4 percent from a year earlier in September following a 23 percent jump in August that was the biggest since 2008, according to government data released Sept. 24. That was the first decline in the inflation rate since August 2010. “Thanks to decelerating inflation, expectations about decreasing interest rates encouraged banks to purchase more government bonds,” Thang Long Securities Joint-Stock Co. said in a research note today. The yield on the three-year government bond dropped one basis point, or 0.01 percentage point, to 12.29 percent, according to a daily fixing from banks compiled by Bloomberg. The dong gained 0.1 percent to 20,828 per dollar as of 3:50 p.m. in Hanoi, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,648 per dollar today, according to its website. It adjusted the rate to 20,638 yesterday from 20,628, the first adjustment since Aug. 24. The currency is allowed to trade up to 1 percent on either side of the rate. “The central bank and commercial banks will continue selling dollars to intervene in the market, fully meeting the economy’s necessary demand for foreign currency,” the State Bank of Vietnam said in a statement on its website late yesterday. The monetary authority reiterated its determination to stabilize the exchange rate through year-end, saying the official fixing won’t be adjusted by more than 1 percent during that time. To contact the editor responsible for this story: Sandy Hendry at [email protected] |
Polysilicon Spot Price Falls 4.7% to $44.40, EnergyTrend Says.The spot price of polysilicon, the raw material for most solar panels, fell 4.7 percent on the week to $44.40 per kilogram, EnergyTrend said. The average selling price of finished panels slid 2.9 percent to $1.09 per watt of peak capacity while multi-silicon solar cells, the main component of a panel, fell 2.8 percent to $2.76 each, the Taipei-based research company said in an e- mailed statement today. To contact the editor responsible for this story: Ben Sills at [email protected] |
World’s Top 10 Sugar-Producing Countries in 2010-2011.The following is a table of the world’s 10 largest sugar-producing nations for the 2010-2011 crop year. The data, measured in millions of metric tons, raw value, are from the London-based International Sugar Organization. To contact the reporter on this story: Blair Euteneuer in Chicago at [email protected] To contact the editor responsible for this story: Steve Stroth at [email protected] |
Verizon, Other ‘Net Neutrality’ Challenges Consolidated.Verizon Communications Inc. (VZ) ’s challenge to the Federal Communications Commission’s so-called net neutrality rules was consolidated with six others into a single case before the U.S. Appeals Court in Washington. The U.S. Judicial Panel on Multidistrict Litigation, which ordered the move, said the selection of the Washington court was random. Verizon sued in Washington last week to overturn open- Internet rules set to take effect Nov. 20, arguing the FCC lacks authority to regulate how companies provide Internet service. The rules, adopted in December, would prevent Internet service providers from blocking or slowing the flow of Web content to homes and businesses. It’s the second time New York- based Verizon has asked the Washington court to overturn the regulations. The court dismissed the first lawsuit April 4, saying the challenge was premature. “We’ve believed all along that this is the proper venue,” said Edward McFadden, a spokesman for Verizon in Washington, adding that the Washington court has previously handled similar cases involving communications, the Internet and broadband. Neil Grace, an FCC spokesman, said the agency “stands ready to defend its Open Internet Order in any court of appeals.” In addition to Verizon, six other challenges were filed in federal courts in Boston , New York , San Francisco , Philadelphia, and Richmond, Virginia. Open Internet Order The FCC’s Open Internet Order requires Internet service providers to disclose their network-management practices and performance, prohibits providers from blocking access to competitor websites or applications, and bars providers from “unreasonably discriminating” in the speed of transmissions. Last year, the FCC’s censure of Comcast Corp. for interfering with subscribers’ Internet traffic was vacated by the U.S. Court of Appeals for the District of Columbia Circuit, which ruled the agency lacked the authority to do so. Gigi Sohn , the president of Public Knowledge, an advocacy group that supports the FCC’s rules, said that had the cases been assigned to a different court, there would have been a greater chance that a decision in favor of the FCC could put the issue before the U.S. Supreme Court. “It would have been more attractive to the Supreme Court,” to have two appeals courts with opposite rulings, she said in an interview. The Verizon case is Verizon v. Federal Communications Commission, 11-1356, U.S. Court of Appeals for the District of Columbia (Washington). To contact the reporter on this story: Tom Schoenberg in Washington at [email protected]. To contact the editor responsible for this story: Michael Hytha at [email protected] . |
Soybeans Decline as Dry, Warm Weather Seen Helping U.S. Harvest.Soybeans dropped as weather conditions in the Midwest, the largest U.S. producing region, are likely to help crop development and advance the harvest. Corn was little changed. November-delivery soybeans lost as much s 0.5 percent to $11.585 a bushel on the Chicago Board of Trade, reversing a 0.3 percent gain. Futures were at $11.62 a bushel at 12:54 p.m. Singapore time. Dry and warm weather was forecast across the Midwest and the Delta regions for several days, favoring maturing soybean and corn crops, and aiding the harvest, Telvent DTN Inc. said in a forecast yesterday. Rains may fall in some areas of Brazil and Argentina , helping support soybean crop development, it said. “Weather looks good and harvest is advancing well in most areas of the Midwest,” Chung Yang Ker, an analyst at Phillip Futures Pte., said in a report e-mailed today. “Soybeans were lower on fund and commercial selling.” December-delivery corn was little changed at $6.05 a bushel, reversing a gain of 0.6 percent. U.S. production of ethanol, forecast by the government to use about 40 percent of the nation’s corn crop, climbed last week by the most since the week ended Aug. 5, according to an Energy Department report. Output increased 2.6 percent to 863,000 barrels a day in the week ended Sept. 30, rebounding from its lowest level since Sept. 24, 2010, the report said. A bumper crop in China , estimated at 181.5 million metric tons, will do little to add to inventories with demand estimated at 181.3 million tons, Abah Ofon , an analyst at Standard Chartered Plc, said in a report yesterday. China will “relish the recent collapse in grain prices” after the government announced the release of 3.7 million tons of corn from state reserves to boost domestic supply and cool inflation amid strong demand for feed grains, Ofon said. Wheat for December delivery rose 0.2 percent to $6.2625 a bushel, after gaining as much as 1.1 percent. To contact the reporters on this story: Luzi Ann Javier in Singapore at [email protected] To contact the editors responsible for this story: James Poole at [email protected] |
CBOT Deliverable Ethanol Under Registration on Oct. 6.Following is a table detailing ethanol deliverable under daily registration certificates, according to the Chicago Board of Trade: To contact the reporter on this story: Stephen Rose in Washington at [email protected] To contact the editor responsible for this story: Alex Tanzi at [email protected] |
Lithuania’s Capital Receives 9.6 Million-Euro Loan From NIB.The Lithuanian capital of Vilnius received a 9.6 million-euro ($12.8 million) loan from the Nordic Investment Bank for the construction of roads and energy- efficiency improvements, the bank said in a statement today. To contact the reporter on this story: Milda Seputyte in Vilnius at [email protected] To contact the editor responsible for this story: Balazs Penz at [email protected] |
Brazil September IGP-DI Inflation Index by Component.Following are the details of the IGP-DI inflation report from Getulio Vargas Foundation in Rio de Janeiro : To contact the reporter on this story: Dominic Carey in Sao Paulo at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
Germany August Construction Prices: Summary.Following is a summary of German August construction prices from the Federal Statistics Office in Wiesbaden: SOURCE: Statistisches Bundesamt To contact the reporter on this story: Kristian Siedenburg in Vienna at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
ECB Says Banks Report Tighter Credit Standards as Crisis Bites.The European Central Bank said financial institutions tightened credit standards “significantly” in the third quarter and expect to tighten them further in the fourth. “The increase in the net tightening of credit standards reported for the third quarter of 2011 should be seen against the background of a re-intensification of the sovereign debt crisis that undermined the perceived soundness of euro-area banks,” the Frankfurt-based ECB said today, citing its quarterly Bank Lending Survey. The ECB also said company demand for loans declined in the third quarter for the first time in more than a year and banks expect it to drop further in the fourth quarter. “This decline points to a significant contraction of loan demand from the corporate sector over the summer period, possibly driven by increasing overall uncertainty and a moderation in the pace of economic activity, notably investment,” the ECB said. To contact the reporter on this story: Jana Randow in Frankfurt at [email protected] To contact the editor responsible for this story: Matthew Brockett at [email protected] |
Canadian Stocks Advance as U.S. Jobless Claims Trail Forecasts.Canadian stocks rose for a second day after the European Commission proposed coordinated action to aid the region’s banks and the U.S. reported a smaller increase in initial jobless claims than most economists had forecast. Ivanhoe Mines Ltd., which is building a copper and gold mine in Mongolia with Rio Tinto Group, surged 13 percent after the government agreed not to increase its stake in the project. Suncor Energy Inc. (SU) , Canada’s largest oil and gas producer, advanced 4.3 percent as crude surpassed $82 a barrel. Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, climbed 3.9 percent after the U.S. reported an increase in corn exports. The Standard & Poor’s/TSX Composite Index rose 322.85 points, or 2.8 percent, to 11,780.07, completing its biggest two-day gain since May 2009. “It’s euphoric hopes on the euro side,” Danielle Park, a partner at Venable Park Investment Counsel Inc. in Barrie, Ontario, said in a telephone interview. The firm manages at least C$1 million ($960,000) each for more than 250 families. “You’re seeing the typical rebound in the commodity side. It’s not fundamental demand. It’s the same old culprits: fast-money, traders trying to make a buck before the next leg comes down.” The S&P/TSX rebounded 2.5 percent from a 14-month low yesterday after the Institute for Supply Management’s monthly index of the U.S. service industry fell less than most economists in a Bloomberg survey had forecast. Canada ’s stock benchmark gauge tumbled 20 percent in the six months ending yesterday on concern about the European debt crisis and the possibility of a new global recession. ‘Coordinated Action’ The European Commission, the executive branch of the European Union, is proposing “a coordinated action to recapitalize banks,” commission President Jose Barroso said today. First-time unemployment claims in the U.S. totaled 401,000 last week, up from a revised 395,000 the previous week, the Labor Department said today in Washington. Economists had forecast an increase to 410,000, according to the median estimate in a Bloomberg survey. Copper futures gained 4.5 percent in New York. A gauge of base-metal and coal producers in the S&P/TSX advanced 7.8 percent to extend their three-day rally to 24 percent, the biggest surge since January 2009. Teck, First Quantum Teck Resources Ltd. (TCK/B) , Canada’s largest company in the industry, climbed 4.6 percent to C$35.32. First Quantum Minerals Ltd. (FM) , the country’s second-largest publicly traded copper producer, jumped 12 percent to C$16.57. Inmet Mining Corp. (IMN) , a copper and zinc producer, soared 13 percent, the most since May 2009, to C$52.65. Ivanhoe Mines rallied 13 percent to C$17.57 after Mongolia said it won’t seek to increase its stake in the $10 billion Oyu Tolgoi project to 50 percent from 34 percent. The existing agreement meets national laws, the parties said in a statement. SouthGobi Resources Ltd. (SGQ) , which mines coal in the Asian country, surged 20 percent, the most since July 2009, to C$7.50. The S&P/TSX Energy Index climbed for a third day. Suncor rose 4.3 percent to C$28.69. Encana Corp. (ECA) , Canada’s largest natural gas producer, gained 5.4 percent to C$20.65. Petrominerales Ltd. (PMG) , which produces oil and gas in Colombia increased 9.6 percent, the most since February 2010, to C$23.01. “Overweight” Rating Talisman Energy Inc. (TLM) , an oil and gas producer with operations in North America , the North Sea and Indonesia , advanced 6 percent to C$12.46 after closing at the lowest since March 2009 yesterday. Katherine Lucas Minyard, an analyst at JPMorgan Chase & Co., raised her rating on the shares to “overweight” from “neutral,” citing Talisman’s production growth in a note to clients. Precious-metals producers climbed as silver futures rose 5.4 percent, palladium 5 percent and gold 0.7 percent. Barrick Gold Corp. (ABX) , the world’s largest gold producer, gained 3 percent to C$49.50. Centerra Gold Inc. (CG) , which mines in Kyrgyzstan and Mongolia, increased 7.2 percent to C$19.72. Extorre Gold Mines Ltd. (XG) , which explores in Argentina , surged 21 percent, the most since it began trading in March 2010, to C$7.62. North American Palladium Ltd. (PDL) soared 19 percent, the most since February 2010, to C$2.66. Fertilizer producers gained after the U.S. Agriculture Department said corn exports doubled last week from a year earlier. Potash Corp. advanced 3.9 percent to C$48.36 after soaring 7.2 percent yesterday. Agrium Inc. (AGU) , a fertilizer producer and farm retailer, increased 4.9 percent to C$73.74. Financials Rally All S&P/TSX insurers and banks climbed. Royal Bank of Canada (RY) , the country’s biggest lender by assets, rose 2.7 percent to C$47.96. Toronto-Dominion Bank (TD) , its largest domestic rival, advanced 1.7 percent to C$73.57. Great-West Lifeco Inc. (GWO) , Canada’s second-largest insurance company, gained 2.8 percent to C$21.47. SNC-Lavalin Group Inc. (SNC) , Canada’s largest engineering and construction company, climbed 5.6 percent to C$45.09 to complete its biggest two-day surge since November 2008. Pierre Lacroix, an analyst at Desjardins Securities Inc., boosted his rating on the stock to “top pick” from “buy” today, citing the shares’ recent declines in a note to clients. SNC-Lavalin sank 32 percent in the three months ending Oct. 4. To contact the reporter on this story: Matt Walcoff in Toronto at [email protected] To contact the editor responsible for this story: Nick Baker at [email protected] |
Two Azerbaijan Soldiers Die After Exchange of Fire With Armenia.Two Azeri soldiers were killed during an exchange of fire with Armenian troops along the former Soviet republics’ militarized cease-fire line yesterday, Azerbaijan’s Defense Ministry said. The servicemen were fatally wounded while “repelling Armenian attacks” near the disputed region of Nagorno-Karabakh, ministry spokesman Teymur Abdullayev said by phone today in the capital, Baku. Oil-rich Azerbaijan fought a war with Armenia over Nagorno- Karabakh, a majority Armenian-populated enclave that broke free of Baku’s control following the disintegration of the Soviet Union in 1991. The territory remains a potential flash point in a region where Russia fought a five-day war with Georgia in 2008 after separatist tensions flared up. While the hostilities largely ended after a Russia-brokered cease-fire in 1994, the countries have failed to reach a peace agreement. Companies led by London-based BP Plc (BP/) have invested more than $31 billion in Azerbaijan ’s oil and gas fields since 1991. To contact the reporter on this story: Zulfugar Agayev in Baku at [email protected] To contact the editor responsible for this story: Hellmuth Tromm at [email protected] |
Doshisha Revises Planned FY Group Dividend to 60.00 Yen 7483 JP.Doshisha (7483) revised full-year group dividend estimates for the period to March 31. Figures are in yen. ================================================================================ Forecast Previous Forecast ================================================================================ Full-Year Dividend 60.00 55.00 1st-Half Dividend 30.00 27.50 2nd-Half Dividend 30.00 N/A ================================================================================ Page forward for parent information... Parent Information ================================================================================ Forecast Previous Forecast ================================================================================ ================================================================================ To contact the editor responsible for this story: Teo Chian Wei at +81-3-3201-3623 or [email protected] |
Souped-Up $80,000 Jeep Ascends Desert Roads to Telluride Snow.If you dream of road tripping across the American Southwest, forget about Route 66. The Mother Road is okay, but the best of the mountains and desert are found on trails that would rip out the oil pan from under a rental. For a go-where-you-please exploration, you want a Jeep. Tough, American, iconic. I’m reminded of this as I rumble up the path to the house where I grew up, a dirt track so rocky you need a 4X4 to reach it. My hometown of Kirtland, New Mexico, has a single stoplight to occasion a pause through the high desert on the way to the Four Corners monument, where New Mexico, Utah , Arizona and Colorado meet. Out here, off-roading is just called driving. Luckily, my prodigal ride isn’t an ordinary Jeep Wrangler. It’s an $81,284 mega-Jeep from Missoula, Montana-based American Expedition Vehicles , which converts new and old Jeeps into extreme off-road bruisers. Around since 1997, it takes about 250 custom orders a year. My test specimen started life as $36,000 four-door, 2011- model-year Rubicon. The extra $45,000 includes a custom suspension, lift kit, winch and specially outfitted drivetrain. It sits loftily off the ground upon 35-inch BF Goodrich mud tires so large they could fit a tractor. A running start helps to vault into the aerie-cum-cockpit. The 6.4-liter Hemi V-8 with 465 horsepower and 465 pound- feet of torque is an option not available in the regular Chrysler product. The privilege costs a whopping $28,000, but makes other Jeep owners coo in appreciation. Mongolian Sky I picked the AEV up in Albuquerque, where the odometer rolled over to 15,000 miles as I ambled northwest toward Kirtland, a 180-mile drive. I’ve found that only Mongolia’s Gobi desert compares to the elemental blue of New Mexico ’s sky. I took off the roof panels to better appreciate the clean, sweet light. Despite the high center of gravity and knobby tires, the AEV corners in a flat manner and rides comfortably. The V-8’s extra power is welcome on high-altitude mountain passes, but the observed gas mileage of 13 highway, 10.5 off-road, is not. I’d already burned $200 worth of 91 octane. My 65-year-old dad, John, and I drove into the desert mesas where our family once ran cattle. Winding up arroyos, or dry washes, we headed toward a distant rock outcropping where my granddad, also John, chiseled his name while astride a horse sometime in the 1940s. Prairie dogs chirped at us. The AEV easily crunched over dirt escarpments and rock gardens. Grazing Elk The next morning we threw in a jack, sleeping bags and shovel, and struck north to Colorado ’s Uncompahgre National Forest and the San Juan mountains. Through the city of Durango, no longer so sleepy, past fields of grazing elk, and to Silverton. Dad and I have done this type of trip before, and we were soon on a squiggling, perilously narrow road over Engineer Pass, well above the tree line, where oxygen is scant and the wind bites. You have to train your eyes to accept the vast distances, the brutal beauty. This is Jeep country and we passed a dozen kindred vehicles. The difference is most of those owners spend their free weekends bolting on custom parts. The AEV is a one-stop- shopping affair, for the kind of driver who prizes free time over cash. Unlike, say, a new Land Rover , Jeeps remain fairly low- tech. There are no hill-descent functions or electronic terrain selections for mud and ruts. Your most important tools are high- and low-range 4X4 and good judgment. Dirt Streets “This rig can go anywhere,” my father said appreciatively as we rolled into the village of Ouray, which still has dirt side streets. “I love it.” Of course he wasn’t paying for gas. My tab so far: $306. The next morning, on Imogene Pass from Ouray to Telluride, we were rebuffed by a thick accumulation of new snow at the summit. Reluctantly turning around, we instead made for a former mine, called Mountain Top, which is aptly named. The road was no wider than our vehicle, with blind corners and no room for mistakes. Creeping along, I hoped for no oncoming off-roaders. Somebody would have to reverse, which could prove to be lethally unfortunate. Reaching the lonely mine without incident, we explored a decrepit bunkhouse with buckled wood floors and coiled, rusted bedsprings. Rock walls rose on all sides around us, sharp spires slicing into a pale sky. The site was both beautiful and terrible in its remoteness. There would be thick snow here, too, very soon. I couldn’t imagine being socked in for the winter like those former miners. Two days later, back in Albuquerque , the AEV’s odometer rolled to 16,000 as I put it into park. One thousand glorious miles and $392 of gas charges. Worth every cent. AEV Jeep Wrangler at a Glance Engine: 6.4-liter V-8 Hemi with 465 horsepower and 465 pound-feet of torque. Transmission: Five-speed automatic. Gas mileage per gallon: Observed 13 highway, 10.5 off-road. Price as tested: $81,284. Best feature: The massive tires which can roll over any obstacle. Worst feature: You’ll need to stop at every gas station along the remote way. Target buyer: The 4X4 fanatic who has to get to the top of the mountain. (Jason H. Harper writes about autos for Muse, the arts and leisure section of Bloomberg News. The opinions expressed are his own.) To contact the writer of this column: Jason H. Harper at [email protected] or follow on Twitter @JasonHarperSpin. To contact the editor responsible for this column: Manuela Hoelterhoff in New York at [email protected] . |
Diamondbacks, Cardinals Force Decisive Game Fives in NL Division Playoffs.Ryan Roberts hit a first-inning grand slam to start the Arizona Diamondbacks toward a 10-6 win against the Milwaukee Brewers , forcing a decisive Game 5 in their National League Division Series. The Diamondbacks, who won two games in Phoenix to even the best-of-five series after losing the first two on the road, will face the Brewers again tomorrow at Milwaukee’s Miller Park. The other National League first-round series also is headed for a fifth game. David Freese drove in four runs with a two-run homer and a two-run double as the St. Louis Cardinals won 5-3 yesterday to even their series against the Phillies. The teams meet tomorrow night in Philadelphia. In the American League, the Texas Rangers already have won their series 3-1 against the Tampa Bay Rays and await the winner of tonight’s Game 5 in New York between the Yankees and the Detroit Tigers. To contact the editor responsible for this story: Rob Gloster at [email protected] |
Arsenal CEO Says Finances Can Survive Champions League Absence.Arsenal Chief Executive Officer Ivan Gazidis says the soccer team’s finances can survive not qualifying for the Champions League. The Gunners have appeared in Europe ’s top club competition for 14 straight seasons, but are off to their worst start to a season since 1953 after losing four of their opening seven Premier League matches. That run, which includes a 8-2 defeat at Manchester United, has led to fears among supporters the club won’t finish among the top four Premier League teams to qualify for the Champions League. Arsenal got 30 million euros ($40 million) in prize money after reaching the round of 16 last season. Arsenal last month announced its fiscal-year profit fell 79 percent to 13 million pounds ($20 million) as the club sold fewer apartments at its former stadium and paid more to its players. Revenue declined by a third to 255.7 million pounds, while its debt was reduced by 28 percent to 97.8 million pounds. “We would rather qualify for it,” Gazidis told reporters at the Leaders in Football conference in London. If the club doesn’t qualify, “we have got a really stable model that could not just cope but do well and compete.” “It would be very foolish to build a business model that relied on being in the Champions League for perpetuity. I don’t think any clubs do that, and if they do then they probably aren’t being run as responsibly as they should be.” Matchday Sales Arsenal , which has won England ’s top league 13 times, played at Highbury from 1913 to 2006 before moving to the 60,000-seat Emirates Stadium nearby. The new facility, which helped almost double matchday sales, drew an average of 59,849 fans per home game last season. Each match generates about 3 million pounds per game, meaning last season’s four home Champions League fixtures would have brought in 12 million pounds. Any loss from not appearing in the competition can be limited by not paying appearance bonuses to players and using the free dates to play friendly matches. Manchester United earned 1 million pounds from playing an exhibition game in Saudi Arabia in 2008. Arsenal is 15th in the 20-team Premier League. The club is regrouping after selling captain Cesc Fabregas, Samir Nasri , Emmanuel Eboue and Gael Clichy over the summer, while bringing in Mikel Arteta, Per Mertesacker, Yossi Benayoun , Andre Santos and Gervinho. To contact the reporter on this story: Tariq Panja in London at [email protected]. To contact the editor responsible for this story: Christopher Elser at [email protected] . |
HTC, Huaku, Investo, Manila Electric, PLDT: Asia Ex-Japan Equities Preview.The following companies may have unusual price changes today in Asian trading, excluding Japan. Stock symbols are in parentheses and share prices are from the previous close, unless noted otherwise. HTC Corp. (2498) (2498 TT): The Taiwanese smartphone maker said profit in the third quarter climbed 68 percent to NT$18.6 billion ($608 million) as expansion in emerging markets such as China continues to drive demand. The average of 17 analysts’ estimates compiled by Bloomberg was for profit of NT$18.1 billion. HTC gained 1.6 percent to NT$687. Huaku Development Co. (2548 TT): Huaku bought 442 square meters of land for NT$883 million in Taipei city in the past 12 months, the company said in a statement to the Taiwan stock exchange. The stock dropped 1.3 percent to NT$61. Inventec Corp. (2356 TT): Inventec said it will shut its tablet computer production because of “changes in the macro environment and external factors,” the Taipei-based company said in an exchange statement, declining to say how many workers will be affected by the shutdown. The company plans to relocate some employees to other production lines, and will make “appropriate arrangements” for excess or unsuitable workers, according to the statement. The shares added 0.4 percent to NT$11.80. Manila Electric Co. (MER) : The largest Philippine electricity retailer’s volume sales in the third quarter is “showing growth,” President Manuel Pangilinan said. The company may match its volume sales last year, he said. The stock declined 0.5 percent to 222 pesos. Philippine Long Distance Telephone Co. (TEL) : Sales at the nation’s largest phone company were likely lower in the third quarter from a year earlier due to slowing economic growth, Chairman Manuel Pangilinan said. It’s too early to say if the company will meet its profit target this year, he said. The stock gained 1.2 percent to 2,146 pesos. To contact the reporter on this story: Anuchit Nguyen in Bangkok at [email protected]. To contact the editor responsible for this story: Darren Boey at [email protected] . |
Saab Says Companies ‘Showing Interest’ in Deal.Saab Automobile said companies are “showing interest” in partnering with the Swedish carmaker as it works through a court-approved reorganization. “Several companies are showing interest in Saab right now,” spokesman Eric Geers said by telephone. “We of course have a binding agreement with Pangda and Youngman.” Saab expects Chinese authorities to make a ruling on the proposed partnerships with Pangda Automobile Trade Co. and Zhejiang Youngman on Oct. 14, Geers said. Saab, which General Motors Co. (GM) sold last year, is going through a financial reorganization in Sweden after first halting production in late March because suppliers stopped delivering parts. Assembly at the main factory in Trollhaettan has been quiet since early June. In August, the carmaker delayed paying wages for the third consecutive month. Zhejiang Geely Holding Group Co., which owns Swedish rival Volvo Cars Corp., is in talks to acquire Saab Automobile , Dagens Nyheter reported today. Geely declined to comment on the story. Swedish Automobile NV, Saab’s parent, advanced as much as 15 cents, or 18 percent, to 97 cents and was up 9.8 percent as of 10:33 a.m. in Amsterdam trading. The shares have dropped 74 percent this year, valuing the Zeewolde, Netherlands-based company at 24.7 million euros ($33 million). To contact the reporter on this story: Ola Kinnander in Stockholm at [email protected] To contact the editor responsible for this story: Chad Thomas at [email protected] |
OECD’s Gurria Says ECB Should Cut Its Benchmark Rate Today.The European Central Bank should cut its benchmark interest rate today and authorities should introduce new bank stress tests that fully take into account a sovereign default, said Angel Gurria , secretary general of the Organization for Economic Cooperation and Development. “We believe there is space,” Gurria said in an interview with Bloomberg Television’s Francine Lacqua in Berlin. “There can be a reduction in interest rates both to signal that the authorities are vigilant and that there is concern about the robustness of the recovery.” Cutting rates today would also “make things easier for Mario” Draghi, the Bank of Italy governor who will succeed Jean-Claude Trichet as ECB head on Nov. 1, Gurria said. Gurria also said that European banks should be subjected to additional stress tests that “fully take into consideration the impact of sovereign debt.” The stress tests conducted earlier this year “did not provide confidence to markets,” because they did not clearly gauge the effects of a sovereign default, he said. To contact the reporter on this story: Andrew Davis in Rome at [email protected] To contact the editor responsible for this story: Craig Stirling at [email protected] |
BMW Struggles to Enlarge Mini Market as Coupe Vies for Worst Sales: Cars.Boris Knoblich is one of the reasons why Bayerische Motoren Werke AG (BMW) is struggling to create a bigger market for the Mini. The 37-year-old media consultant from Berlin doesn’t have the Munich-based manufacturer’s urban car brand on his shopping list, rejecting the new two-seater Mini coupe that his dealer offered as a replacement to his BMW 1-Series compact. “It’s a bit racy-looking compared with other Minis, but too small and not variable enough,” said Knoblich, who’s considering another 1-Series as well as an Audi A3 and Auris hybrid from Toyota Motor Corp. “I need a multifunctional car.” Mini, which was salvaged from the wreckage of the failed takeover of the U.K.’s Rover Group, is central to BMW’s strategy to meet tighter environmental standards and fend off Volkswagen AG (VOW) ’s Audi and Daimler AG (DAI) ’s Mercedes-Benz. The world’s biggest maker of luxury vehicles plans to tighten cooperation between Mini and the namesake brand by sharing front-wheel drive technology after the Mini hatchback is overhauled in 2014. The $22,000 coupe, which went on sale in Europe on Oct. 1 and will hit U.S. dealers later this fall, is the first of three new Mini variants that will go on sale by the end of next year, expanding the lineup to seven similarly sized vehicles. The new models, which all share the same basic underpinnings, will probably do little beyond keeping the brand’s sales from declining as the iconic Mini hatchback ages, analysts said. “Mini can’t do the volumes that they want with the body styles that they have,” said Rebecca Lindland , an analyst IHS Automotive in Norwalk, Connecticut. “They have to push the envelope up and down” with larger and smaller models. Worst Seller Growth in Mini’s deliveries will probably slow to 2.7 percent in 2012 and 1.6 percent in 2013 after jumping 23 percent this year on demand for the four-door Countryman crossover, according to IHS Automotive forecasts. The helmet-topped coupe will be joined by a roadster and the Paceman, a sportier crossover, by the end of 2012. The roadster and coupe are set to vie for the status as the brand’s worst seller, with coupe sales pegged at 6.2 percent of 2013 deliveries of 296,240 cars and the roadster at 5 percent, according to IHS. Audi targeted Mini with the A1 subcompact. Daimler is adding to that pressure as it rolls out five new Mercedes compact cars starting with the revamped B-Class this fall. The automaker’s Smart city car will expand beyond a two-seater from 2013, after confronting its own size limits. Mini isn’t concerned by the potential slow sales for the derivatives and plans further expansion to the lineup and markets, said Kay Segler, the brand’s chief. Ten Minis “I see great potential for Mini,” said Segler in an e- mail response to questions. “There’s no limit to our creativity. We can imagine additional models with typical Mini characteristics -- up to 10 models are conceivable.” Mini, based in Oxford, England, plans to enter India next year after expanding to Indonesia in 2011, he said. BMW is targeting record Mini sales this year, with deliveries set to rise at least 10 percent. The coupe, which competes with $19,545 Honda CR-Z, will be Mini’s first two-seater. The loss of the rear bench leads to a drop in weight of 60 kilograms (132 pounds), helping it accelerate to 100 kilometers (62 miles) per hour in 9 seconds, one tenth of a second faster than the corresponding hatchback. The engines are shared with other Mini models. While it’s 2.9 centimeters (1.1 inches) shorter than the hatchback, the length and width are nearly identical, reflecting the size constraints faced by the brand’s models. High Margins “The coupe is quirky, but that’s what Mini is,” said Garel Rhys, president of the auto industry research center at the U.K.’s Cardiff University. “BMW is showing that they’re pretty clever and innovative with the derivatives.” The close association of the coupe with the brand’s other models should boost profit margins, especially considering its price is 1,650 euros, or 8.4 percent, more than the similarly equipped hatchback, said Jonathon Poskitt, an analyst at J.D. Power and Associates in Oxford, England. The coupe relies on “synergies” with other models and every variant has to “stand on its own,” Mini’s Segler said. The new two-seater will likely appeal to men under 35 looking for a conspicuous car, said Werner Entenmann, head of Autohaus Entenmann in Esslingen near Stuttgart. He celebrated the introduction of the model with a party for 800 guests, including a champagne reception and cocktails. ‘No Middle Ground’ “We expect it to be a niche, lifestyle-oriented car,” said Entenmann, who plans to reserve one or two places for the coupe in his Mini showroom, which can display up to eight vehicles. “It either fascinates or leaves people cold. There’s no middle ground.” The coupe is part of Mini’s development toward more independence, said the dealer, who sells Mini and BMW cars. He is hoping for a larger model from the brand. So is Knoblich. “Mini works as a city car,” said the 1-Series driver. “But I need something that’s a city car, can drive long distances and transport stuff and people. Mini doesn’t offer that right now.” To contact the reporter on this story: Chris Reiter in Berlin at [email protected] To contact the editor responsible for this story: Chad Thomas at [email protected] |
Barroso Says Bank-Aid Steps May Vary Among European Countries.European governments won’t all take the same steps to repair the banking system, European Commission President Jose Barroso said. “No one in Europe is against the idea of coordination in such a sensitive area,” Barroso said at a press conference with Finnish Prime Minister Jyrki Katainen in Brussels today. “That doesn’t mean that all member states will do the same thing.” To contact the editor responsible for this story: James G. Neuger at [email protected] |
ICE Coffee Stockpiles by Country of Origin for Oct. 6.Following is a table detailing coffee stockpiles held at port warehouses monitored by the ICE Futures U.S. exchange: To contact the reporter on this story: Mike Sebany in Washington at [email protected] To contact the editor responsible for this story: Alex Tanzi at [email protected] |
Van Rompuy Says There’s ‘No Alternative’ to Euro, Trends Reports.The euro will survive the sovereign- debt crisis because there is “no alternative,” European Union President Herman Van Rompuy said in an interview with Trends. “We stand probably before the most difficult phase in the history of the euro,” the magazine quoted Van Rompuy as saying. “If you ask me if we are going to work it out, I say ‘yes’ because neither an individual country nor the euro zone as a whole have an interest in letting the euro fall. There is just no alternative,” he told Trends. “We sit in a dangerous phase,” Van Rompuy said in the interview. “We have to guarantee the financial stability of the euro area, not just because it’s in our own interest but also in order not to throw the world economy into a recession or depression. Therefore the whole world is looking to us,” he was quoted as saying. To contact the reporter on this story: Andrew Clapham in Brussels at [email protected] To contact the editor responsible for this story: Angela Cullen at [email protected] |
U.S. Homebuilders’ Improving Markets Index (Text).Following is the text of the Improving Markets Index (IMI) from the National Association of Home Builders. Number of Improving Housing Markets Nearly Doubles in October The second edition of the National Association of Home Builders/ First American Improving Markets Index (IMI), released today, shows 23 individual housing markets now qualifying as “improving” under the new gauge’s parameters. This is nearly double the 12 housing markets that made the list last month. The index reveals metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices. The following metros were listed in October: · Alexandria, LA · Amarillo, TX · Anchorage, AK · Bismarck, ND · Casper, WY · Fairbanks, AK · Fayetteville, NC · Houma, LA · Iowa City, IA · Jonesboro, AR · Kankakee, IL · McAllen, TX · Midland, TX · New Orleans , LA · Odessa, TX · Pine Bluff, AR · Pittsburgh, PA · Sherman, TX · Sumter, SC · Waco, TX · Waterloo, IA · Wichita Falls, TX · Winston-Salem, NC “Both the number and geographic diversity of improving housing markets expanded this month, with Iowa, Illinois and South Carolina all newly represented by one entry or more on the list,” said National Association of Home Builders (NAHB) Chairman Bob Nielsen, a home builder from Reno, Nev. “This is further evidence that, despite the tough conditions that persist in many cities, pockets of improvement are emerging in local housing markets across the country.” “While Pittsburgh and New Orleans remain the two largest improving markets, the October IMI is heavily weighted by smaller cities in which energy and agriculture are the primary economic drivers and where the effects of the recession have been less pronounced,” said NAHB Chief Economist David Crowe. “In particular, Texas stands out for its seven entries on the improving markets list.” Bangor, Maine , was the only area to drop off of the improving markets list in October, due to a decline in local building permits. The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac , and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list. Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday - in which case, the index will be released the following Monday. A full calendar of 2011 release dates can be found at www.nahb.org/imi. SOURCE: NAHB To contact the reporter on this story: Kristy Scheuble in Washington at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
New Computer System Forces Greek Tax Office Closure, Ta Nea Says.Tax offices in the Greek capital of Athens will be closed today and tomorrow as the government transfers data to a new computer system, Ta Nea reported, without citing anyone. Tax collection in Thessaloniki, Greece ’s second largest city, and the port city of Piraeus will also be affected, the Athens-based newspaper said. The tax offices are expected to resume operations Oct. 10, the newspaper said. To contact the reporter on this story: Tom Stoukas in Athens at [email protected] To contact the editor responsible for this story: Maria Petrakis at [email protected] |
Bovespa Stock Index Declines, Extends Longest Weekly Slump Since June.The Bovespa stock index posted a third weekly drop, the longest losing streak since June, on concern Europe ’s debt crisis will slow global growth while fewer interest-rate cuts in Brazil may limit domestic demand. State-controlled oil company Petroleo Brasileiro SA slumped after Bank of America Corp. cut its profit estimates. Miner MMX Mineracao & Metalicos SA paced a rout for raw-material producers after commodities erased gains. PDG Realty SA Empreendimentos & Participacoes, Brazil’s biggest homebuilder by revenue, fell as accelerating inflation spurred traders to push up yields on interest-rate futures. The Bovespa fell 2 percent to 51,243.62 at the close of trading in Sao Paulo , for a weekly loss of 2.1 percent. Sixty- one stocks slid on the index today while seven rose. The real gained 0.6 percent to 1.7706 per dollar. Brazil ’s benchmark equity gauge accelerated its drop, tracking U.S. stocks, after Italy and Spain were downgraded by Fitch Ratings. “Foreigners have been leaving the market because of worries about the crisis abroad,” said Clodoir Vieira, an economist at Sao Paulo-based brokerage Souza Barros Corretora. “There are still many uncertainties. The volatility should continue.” Italy and Spain had their long-term issuer default ratings cut by Fitch on concern they will struggle to improve their finances as Europe’s debt crisis intensifies. The Standard & Poor’s GSCI index of 24 raw materials erased a gain of as much as 0.9 percent to close little changed. Foreign Outflows Brazil is stepping up efforts to fight insider trading after identifying suspicious patterns, chief securities regulator Maria Helena Santana said in an interview in Sao Paulo today. Her agency, known as CVM, is developing a new system to monitor markets and detect trading patterns on the days prior to earnings releases, she said. Foreign investors have pulled 360.1 million reais ($203.4 million) from Latin America ’s largest equity market in the year through September, data from the Sao Paulo exchange show. Petrobras tumbled 2.9 percent to 18.30 reais. Net income estimates for this year and next were reduced at Bank of America, which cited a “slight” reduction in average production. Petrobras’s earnings estimates were reduced 5.1 percent for 2011 and 2.7 percent for 2012, according to a report today by Frank McGann, an analyst in Buenos Aires , and Conrado Vegner in Sao Paulo. MMX, controlled by billionaire Eike Batista , lost 5.8 percent to 6.61 reais. Inflation Brazil’s inflation accelerated for the third straight month, limiting room for the central bank to speed up the pace of interest-rate cuts. Consumer prices, as measured by the IPCA index, rose 0.53 percent in September from the previous month, the national statistics agency said today, the fastest pace since April. That was in line with analyst expectations for a 0.54 percent rise, according to the median estimate of 51 economists surveyed by Bloomberg. Prices rose 7.31 percent from a year ago. PDG declined 4.3 percent to 6.25 reais as the BM&FBovespa Real Estate (IMOBBV) Index lost 1.5 percent. The Bovespa entered a bear market in July after plunging 20 percent from its bull-market peak last year. The measure since extended that drop to 30 percent and trades at 8.8 times analysts’ earnings estimates, data compiled by Bloomberg show. That compares to a ratio of 9.2 for MSCI Inc.’s gauge of 21 developing nations’ equities. Traders moved 5.62 billion reais in stocks in Sao Paulo today, compared to a daily average this year of 6.28 billion reais, data compiled by Bloomberg show. To contact the reporter on this story: Alexander Cuadros in Sao Paulo at [email protected] To contact the editor responsible for this story: David Papadopoulos at [email protected] |
Turkish Yields Drop After Bank Sees Core Inflation Peaking at 8%.Turkish bond yields declined after the central bank said it expected core inflation to peak at 8 percent in the fourth quarter. Yields on two-year benchmark debt fell 11 basis points to 8.43 percent at 11:29 a.m. in Istanbul. The central bank’s preferred measure of core inflation, which excludes energy, food, tobacco and gold prices, jumped to a 2 1/2-year high of 7 percent in September from 6.2 percent a month earlier, the statistics agency said on Oct. 3. To contact the reporter on this story: Selcuk Gokoluk in Istanbul at [email protected] To contact the editor responsible for this story: Mark Bentley at [email protected] |
Russian Inflation May Drop to 7% in December, Nabiullina Says.Russia’s inflation rate may drop to 7 percent in December from 7.2 percent last month, Economy Minister Elvira Nabiullina said at a conference in Moscow today. To contact the reporter on this story: Scott Rose in Moscow at [email protected] To contact the editor responsible for this story: Paul Abelsky at [email protected] |
U.S. Aug. Home Price Index by City Distressed Excluded.Following is the 12-month transaction based price changes for single family homes, excluding distressed, in large U.S. metropolitan areas from LoanPerformance. Source: First American LoanPerformance HPI To contact the reporter on this story: Alex Tanzi in Washington at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
Deutsche Telekom in Talks With Asia, U.S. Manufacturers Over Smart Homes.Deutsche Telekom AG (DTE) is in talks with Asian and U.S. makers of electronic devices and appliances about a co-operation to boost services that manage data exchange between household devices such as TVs and washing machines. Europe ’s largest phone company, which aims to make 1 billion euros ($1.3 billion) in sales by 2015 from such machine- to-machine services, is in talks with “big name” companies, including makers of entertainment electronics in Japan and South Korea , Gabriele Riedmann de Trinidad, the head of Deutsche Telekom’s energy unit, said in an interview in Kiel, Germany. Getting these high-caliber partners would be a “giant step” for the platform, she said, without naming them. So-called smart home services, where machines use networks to exchange data and users can access and operate electrical appliances from anywhere, are part of Deutsche Telekom’s strategy to counter declining sales from traditional voice calls with new offerings. Riedmann de Trinidad says deals with well- known manufacturers are necessary to drive awareness among consumers and competitors. “We have a long list of companies that are interested in working with us,” she said. “It’s an evolution, and that makes it important that large, big-name manufacturers get onto our platform to drive things forward.” Under the name T-City , Bonn-based Deutsche Telekom is already running pilot projects that include smart metering to help utility companies measure and control energy consumption and delivery; and health projects such as instant communication of insulin readings to physicians. Competition Operators are in talks with manufacturers “to let them know what is possible for them to do, if they would incorporate that technology into their devices,” Jamie Moss, an analyst at Informa Telecoms and Media, said via phone. “It’s a good opportunity for long-term revenue for the operators. The amount you make per connection is not going to decline over time.” Other technology companies are pushing into the home appliance and energy-control market as well. Cap Gemini SA (CAP) , Europe’s largest computer-services company, and Intel Corp. (INTC) , the world’s biggest chipmaker, in February said they would offer a home energy-management system to consumers and utilities as the companies enter the market for power-saving upgrades to electric grids. Momentum Google Inc. (GOOG) , owner of the world’s most popular search engine, in June said it would retire its PowerMeter service, which gave consumers simple access to their energy use, as the company’s “efforts have not scaled as quickly as we would like.” At the same time, Google said “momentum is building toward making energy information more readily accessible, and it’s exciting to see others drive innovation and pursue opportunities.” German utilities EON AG, the country’s biggest utility, and EnBW Energie Baden-Wuerttemberg AG (EBK) as well as appliance maker Miele & Cie KG and electronic device maker eQ-3 Holding AG have so far joined Deutsche Telekom’s Smart Connect standard. Deutsche Telekom would also welcome other telecommunications companies and cable companies to join, Riedmann de Trinidad said. Private customers in Germany will be able to buy the Sumitomo Electric Industries Ltd.-made Smart Connect Box, which functions as the central control device, from mid-2012. Deutsche Telekom has an advantage over other phone companies or companies because it combines telecommunications networks with its information-technology expertise and direct access to consumers, Riedmann de Trinidad said. To contact the reporter on this story: Cornelius Rahn in Frankfurt at [email protected] To contact the editor responsible for this story: Kenneth Wong in Berlin at [email protected] |
U.S. Stocks Rise on Speculation About Progress on Europe Crisis.U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest three-day gain since August, amid speculation that European officials were making progress in containing the region’s debt crisis. Financial stocks in the S&P 500 added 3.2 percent as a group, rising 8.8 percent in three days, the biggest advance since July 2009, as European lenders gained and Treasury Secretary Timothy F. Geithner said U.S. banks have strengthened. Alcoa Inc. (AA) , the largest U.S. aluminum producer, climbed 5.4 percent as commodities jumped. Target Corp. (TGT) added 4.3 percent as September sales beat analysts’ estimates. The S&P 500 rallied 1.8 percent to 1,164.97 at 4 p.m. New York time, climbing 6 percent in three days, the most since Aug. 15. The Dow Jones Industrial Average gained 183.38 points, or 1.7 percent, to 11,123.33 today. The Russell 2000 Index of small companies jumped 2.4 percent, extending its three-day advance to 11 percent, the biggest rally since March 2009. “Europe has been a significant cloud hanging over our heads,” Michael Mullaney, who helps manage $9.5 billion at Fiduciary Trust in Boston , said in a telephone interview. “If there’s something more long-term in nature as compared to a short-term fix, the market will look very favorably on that, especially the financial sector.” The S&P 500 this week came within 1 percent of extending its decline from its April peak to 20 percent, the common definition of a bear market. Concern over Europe’s debt crisis sent the index to a one-year low on Oct. 3, pushing it to 12.02 times reported earnings, according to data compiled by Bloomberg. That was the cheapest valuation level since 2009. ‘Downside Risks’ European Central Bank President Jean-Claude Trichet said the ECB will resume covered-bond purchases and reintroduce yearlong loans for banks, while defying calls for an interest- rate cut and acknowledging “downside risks” to the economy have intensified. The European Commission is pushing for a coordinated capital injection for banks to shield them from the fallout of a potential Greek default. “People have priced in a Lehman II type of situation,” Brian Barish, Denver-based president of Cambiar Investors LLC, which oversees about $8 billion, said in a telephone interview. “You start to hear some credible stuff on European bank recapitalization. They will do what they’ve got to do to prevent a Lehman from happening.” The KBW Bank Index (BKX) rallied 4.6 percent. Geithner said U.S. financial firms have strengthened and there is “absolutely” no chance of another collapsing like Lehman Brothers Holdings Inc. in 2008. Geithner, testifying today before the Senate Banking Committee in Washington , didn’t mention any banks by name when responding to a question about Morgan Stanley. ‘Very Modest’ “The direct exposure of the U.S. financial system to the countries under the most pressure in Europe is very modest,” he said. “Our firms, and this is true across the largest institutions in the United States , again are in a much stronger position if you look at their capital levels, levels of leverage, how they’re funded.” Bank of America Corp. (BAC) rose 8.8 percent, the most in the Dow, to $6.28, while JPMorgan Chase & Co. added 5 percent to $32.38. Morgan Stanley (MS) climbed 4.8 percent to $15.18. Citigroup Inc. increased 5.3 percent to $26.02. Stocks also rose as data showed that claims for U.S. unemployment benefits rose less than forecast last week. Government data tomorrow are forecast to show employers added 55,000 workers to payrolls in September and the unemployment rate held at 9.1 percent, according to the median forecast of economists. Most-Tied The Morgan Stanley Cyclical Index of companies most-tied to the economy rose 2.6 percent. The Dow Jones Transportation Average added 2.2 percent. Alcoa gained 5.4 percent, the second- biggest gain in the Dow, to $9.88. The company will mark the unofficial start of the earnings season when it reports results on Oct. 11. A gauge of retailers in the S&P 500 rose 2.1 percent. Target and Limited Brands Inc. helped September retail sales beat analysts’ estimates as promotions drove consumers to increase purchases amid concerns the economic recovery may stall. Target jumped 4.3 percent to $51.91. Limited, owner of the Victoria’s Secret chain, rose 0.8 percent to $40.59. Yahoo! Inc. lost 1.7 percent to $15.65. Microsoft Corp. (MSFT) isn’t anywhere close to making an offer for the company and senior executives of the software maker aren’t involved in discussions, two people familiar with the matter said. Yahoo surged 10 percent yesterday on a Reuters report that Microsoft may make a bid. Trading Range Excluding its dip to a 13-month closing low of 1,099.23 on Oct. 3, the S&P 500 has mostly traded between about 1,120 and 1,220 for the past two months. Of the 14 other trading range instances since 1990, more than 75 percent resulted in gains over the following one, three and six months, according to Birinyi Associates Inc., the Westport, Connecticut-based money management and research firm. The average trading range lasts about seven months, with the shortest one beginning in March 1998 and lasting three months, Birinyi data show. “The market’s been in a trading range,” Wasif Latif, vice president of equity investments at USAA Investment Management Co. in San Antonio , which oversees about $50 billion, said in a telephone interview. “We’ll need clear economic data or policy movements out of Europe to break out that range.” Wall Street strategists say the S&P 500, after falling within 1 percent of a bear market this week, will post the biggest fourth-quarter rally in 13 years even after they cut forecasts at a rate exceeded only during the credit crisis. “Investors are way too bearish and are being swayed by macro variables,” Brian Belski , the New York-based chief investment strategist at Oppenheimer, wrote in an e-mail on Oct. 4. “Fundamentals drive stocks,” he said. “U.S. portfolios are not positioned for a positive third-quarter earnings season.” To contact the reporter on this story: Rita Nazareth in New York at [email protected] To contact the editor responsible for this story: Nick Baker at [email protected] |
Spain Makes Banks Pay for Cajas’ Overhaul to Shield Budget.Spain will make commercial lenders assume losses generated from the overhaul of savings banks through a decree law shielding public finances from the cost. Spain’s industry-financed deposit guarantee funds will be united into one entity that bears the losses that may arise when lenders seized by the state are sold. The combined facility, which will still be responsible for backstopping deposits, has 6.59 billion euros ($8.75 billion) in equity, Finance Minister Elena Salgado said today. “The financial sector will assume, in their entirety, the costs that may arise from the clean-up and restructuring of the financial sector,” Salgado told reporters in Madrid. “We’re doing it now because it’s now that we perceive the possibility that the process could produce losses.” The measure will shield the budget deficit from bank losses as the Socialist government struggles to meet its pledge to cut the euro region’s third-largest shortfall. The changes will be passed by decree while Parliament is closed just six weeks before a general election that polls show the ruling Socialists will lose. Protecting Finances “It’s a way to protect the government finances from more losses in the banking system because basically there’s no more money,” Ricardo Wehrhahn, a partner at Roland Berger Strategy Consultants in Madrid, said in a telephone interview. “There are some significant funds in the deposit funds and so the government is looking at those resources.” Spain’s bank-rescue fund, the FROB, took over three more lenders on Sept. 30 that failed to meet a deadline to reach new capital requirements , bringing to six the number of institutions the state has seized. The Bank of Spain is trying to sell Caja de Ahorros del Mediterraneo group, which it seized in July, by the end of the year and Governor Miguel Angel Fernandez Ordonez said last week the process may generate losses. Salgado said the changes will be passed by decree and can be ratified by Parliament’s permanent committee, which continues to meet for urgent matters while the assembly is closed. The Spanish Banking Association signaled its opposition to using funds raised by commercial lenders’ contributions to pay for losses created by savings banks. Until now, banks and cajas, as the savings banks are known, each had their own deposit- guarantee funds. Different Funds “The unification should treat appropriately the fact that the banks’ and cooperative lenders’ deposit-guarantee fund have raised an important amount of money (3.88 billion euros), which it seems they now want to use for aid to the savings-bank sector,” the association said in an e-mailed statement. Commercial banks including Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA (BBVA) haven’t received state rescues. Bailouts have focused on the cajas as the government has nudged the unlisted, regional savings banks into becoming commercial lenders and merging with others. “It looks very tricky,” Wehrhahn said. “It’s a way to finance the FROB but the FROB is a public entity and the commercial banks are private and you shouldn’t really make them pay.” The FROB, created in 2009 with 9 billion euros of equity and the ability to take on as much as 90 billion euros of debt, said last week it would spend 7.55 billion euros to take over Unnim, CatalunyaCaixa and Novacaixagalicia savings banks. That comes on top of the 10 billion euros committed in a previous round of recapitalizations via preference shares. Elections Spain’s Socialist government is fighting to reduce the budget deficit to 6 percent of gross domestic product this year, from 9.2 percent in 2010. Salgado reiterated today that goal is “unconditional.” The move comes before a Nov. 20 general election that polls indicate the ruling Socialists will lose to the opposition People’s Party. Socialist candidate Alfredo Perez Rubalcaba, a former deputy prime minister and friend of Salgado, has focused on the banks in his campaign and pledged to create a levy on them if he’s elected as well as increasing taxes on the wealthy. The last local elections in May were marked by nationwide protests against bank bailouts and austerity measures, and Rubalcaba has said he is listening to the demands of the so- called “indignant ones.” While Salgado said she spoke to the PP about the measure, she offered no details on their views. No one at the opposition party was immediately available to comment today when contacted by Bloomberg News. To contact the reporters on this story: Emma Ross-Thomas in Madrid at [email protected] ; To contact the editors responsible for this story: Frank Connelly at [email protected] ; Craig Stirling at [email protected] Stirling |
Jobs Was ‘Icon of the Digital World,’ Germany’s Roesler Says.Steve Jobs , the former chief executive officer of Apple Inc. (AAPL) who died yesterday aged 56, was a model of entrepreneurship and an “icon of the digital world,” German Economy Minister Philipp Roesler said. “He still is a role model” and his death is a loss that “extends far beyond the digital world,” Roesler told reporters in Berlin today. To contact the reporter on this story: Stefan Nicola in Berlin at [email protected] To contact the editor responsible for this story: Alan Crawford at [email protected] |
Australian, New Zealand Currencies Slide Versus U.S. Dollar, Japanese Yen.The Australian and New Zealand dollars fell versus their U.S. and Japanese counterparts. The so-called Aussie dropped to 96.27 U.S. cents at 2:22 p.m. in Sydney from 96.59 cents yesterday in New York. It declined to 73.91 yen from 74.17. New Zealand’s currency slid to 76.34 U.S. cents from 76.62, and to 58.59 yen from 58.84. To contact the reporter on this story: Candice Zachariahs in Sydney at [email protected] To contact the editor responsible for this story: Benjamin Purvis at [email protected] |
MannKind Leads Planned U.S. Offerings of Bonds: New Issue Alert.MannKind Corp., the biotechnology company founded by billionaire investor Alfred Mann, is among companies planning to sell at least $2.92 billion of bonds in the U.S., according to data compiled by Bloomberg. Companies issued $3.4 billion of bonds yesterday, Bloomberg data show. Issuers have sold $915.1 billion of bonds this year, compared with $872.9 billion in the similar period of 2010. Following is a description of pending sales of corporate and other bonds. Investment Grade BANCO DE BOGOTA SA (BOGOTA) , the unit of Grupo Aval Acciones y Valores, plans to sell $1 billion of 10-year senior unsecured notes denominated in U.S. dollars, Moody’s Investors Service said on Sept. 22. Moody’s said that it would rate the proposed notes Baa2. (Updated Sept. 26. See BOGOTA CB.) INDIAN RAILWAY FINANCE CORP., the funding arm of India’s rail ministry, plans to sell $300 million of dollar-denominated bonds to fund train purchases. The fixed-rate notes due in five years may pay a coupon lower than the 4.406 percent set at its March sale, Managing Director Rajendra Kashyap said in an interview in New Delhi. The proposed notes are rated BBB- by Standard & Poor’s. TRITON CONTAINER INTERNATIONAL LTD, the world’s largest owner-lessor of marine intermodal cargo containers, plans to sell $180 million of senior notes, according to a statement distributed by Standard & Poor’s. S&P assigned a BBB issue-level rating to the notes from the San Francisco-based company, which leases dry van, open top and flat rack containers. Split-Rated UNION BANK OF INDIA LTD., the Mumbai-based lender that went public in 2002, hired banks to help it arrange a series of credit investor meetings in Asia and Europe , according to a person with knowledge of the transaction. The bank may consider a sale of dollar bonds thereafter subject to market conditions, the person said, asking not to be identified as details are private. Bank of America Corp., Barclays Plc, Citigroup Inc., HSBC Holdings Plc, Deutsche Bank AG and Standard Chartered Plc are helping to arrange the meetings, the person said. The bank is rated Ba1 by Moody’s and BBB- by S&P. Not Rated BANCO BICE plans to sell $120 million of five-year bonds denominated in U.S. dollars, said Diario Financiero, citing the Santiago-based lender. UCO BANK, a Kolkata, India-based state-owned bank, plans to meet with debt investors in Hong Kong , London and Singapore ahead of a possible sale of bonds denominated in U.S. dollars, according to a person with direct knowledge of the matter. BNP Paribas, Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc will arrange the so-called non-deal roadshows, said the person, who asked not to be identified because he is not authorized to speak on the matter. PRONACA will sell $50 million in bonds to help refinance existing debt, the Bolsa de Valores de Quito said. Ecuador’s biggest food processing company will sell the bonds, which have maturities ranging from 3.2 years to 5.9 years, to yield between 6.25 percent and 7.25 percent, the exchange said in an e-mailed statement. AKKORD INDUSTRY CONSTRUCTION I, a civil engineering firm based in Baku, Azerbaijan , plans to sell $100 million of bonds in U.S. dollars, according to data compiled by Bloomberg. The notes will be due in three years, the data show. (Added Aug. 8. See http://www.akkord.az/ ) High Yield VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE, or VietinBank, may offer a coupon of 5 percent to 6 percent on its planned $500 million overseas bond sale, Chairman Pham Huy Hung said in an interview in Hanoi on Sept. 15. The lender is “determined to sell the bonds within this year,” said Hung. MANNKIND CORP. (MNKD) , the biotechnology company founded by billionaire investor Alfred Mann, plans to raise $370 million by selling senior secured discount notes due 2017, the Valencia, California-based firm said in a Sept. 23 statement distributed by Business Wire. Proceeds may be used to complete Phase 3 clinical trials of MannKind’s lead product candidate, Afrezza, preparing for the commercialization of Afrezza, continuing to build out a Danbury, Connecticut, factory and for research and development, according to the statement. EMPRESA DE ENERGIA DE BOGOTA SA, Colombia’s second-biggest electricity transporter, hired Deutsche Bank AG and Banco Santander SA to sell bonds overseas, according to a person familiar with the offering. Bogota-based EEB, as the utility is known, may seek to sell bonds that mature in 10 years, said the person who declined to be identified because terms aren’t set. YPF SA, Argentina’s dominant integrated oil company, may sell $300 million to $600 million of dollar-denominated eight- year notes, according to a July 8 note from Fitch Ratings , which rates the bonds BB-. The proceeds of the offering of senior unsecured notes may be used for general corporate purposes, mainly capital investments and working capital needs, according to the note. PROBUSINESSBANK hired BCP Securities LLC and UBS AG to arrange meetings with investors in Asia and Europe for a possible sale of bonds in dollars, said a banker with knowledge of the deal, who declined to be identified because terms aren’t set. The Russian lender is rated B2 by Moody’s. Offerings in Pipeline UNITED TECHNOLOGIES CORP. (UTX) , the maker of Pratt & Whitney jet engines, may raise $12 billion of debt to help finance its $16.5 billion acquisition of Goodrich Corp., Chief Financial Officer Greg Hayes told analysts on a conference call on Sept. 22. Most of the debt will mature within five years, he said. CODELCO, the world’s largest copper producer, will look to sell bonds to help finance a record $4 billion investment in its Chilean mines next year, Chief Executive Officer Diego Hernandez said. ENTERGY LOUISIANA LLC, the unit of the New Orleans-based power company, plans to sell about $206 million of bonds, according to a company statement. The offering was delayed and reauthorized after the utility violated regulations by publicizing the sale in the wrong newspapers, the Associated Press said on Aug. 11. ISLAMIC BANK OF THAILAND, the nation’s state-owned bank, may sell $150 million of Sharia-compliant bonds overseas, the bank’s president Dheerasak Suwannayos, told reporters. DOLPHIN ENERGY LTD., the Dubai-based natural gas producer, will be “actively monitoring the market” and will release terms on its planned dollar benchmark bond issue in an “appropriate window of execution,” the company said in an e- mailed statement. ABU DHABI may sell an international bond, Lars Boman, senior adviser at Abu Dhabi’s Debt Management Office, told a Euromoney conference in London. ROMANIA has started work on upgrading its medium-term note program to include dollar-denominated notes, Deputy Finance Minister Bogdan Dragoi said at a conference in Bucharest. The ministry will have the option to sell bonds in either dollars or euros, he said. THE NETHERLANDS may sell “a few billion” of dollar- denominated bonds this year, according to the Dutch State Treasury Agency. The securities are likely to have five-year maturities, Peter Nijsse, the head of cash management, issuance and trading at the agency, said in an interview following a media presentation in London on June 10. The Netherlands is rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. CODERE SA (CDR) , Spain ’s only publicly traded gambling operator, may sell its first dollar-denominated bonds to refinance existing debt in euros, Chief Financial Officer David Elizaga said in an interview. Codere, which has 760 million euros ($1.1 billion) of bonds maturing in 2015, will sell “certainly a minimum of $400 million” in the securities that will help the company buy back debt and extend maturities to 2018 or 2019, he said. EL TEJAR SA, the world’s largest grain producer, plans to sell as much as $300 million of bonds in the U.S. this year before a planned initial public offering, according to the company’s chief financial officer. The Buenos Aires-based company could accelerate plans for the IPO depending on investor reaction to the sale of between $200 million and $300 million of bonds maturing in seven to 10 years, Chief Financial Officer Mario Lorencatto said. BHARTI AIRTEL LTD., India’s biggest mobile-phone operator, plans to raise $750 million selling its first overseas bonds, according to Fitch Ratings. Fitch graded the notes BBB-, the lowest investment grade, according to a statement from the ratings company. CHINA AUTOMATION GROUP LTD. plans to issue $200 million of senior notes due 2016 to yield 7.75 percent, the company said in a statement to the Hong Kong stock exchange on April 14. UBS AG will lead the sale of the issue, for which conditions and terms are yet to be decided, it said. ASTON RESOURCES LTD., the Australian mineral exploration company, is considering selling bonds in the U.S. to help raise funds to develop its Maules Creek coal project in New South Wales, Chief Executive Officer Todd Hannigan said at a business luncheon in Sydney on March 3. Aston may raise $300 million to $500 million, he said. MONGOLIA is planning its first sale of sovereign bonds, seeking about $500 million, to establish a benchmark that would help companies from the resource-rich nation located between China and Russia raise funds from credit markets. The issue will be used to finance expansion of the mining industry and build roads and bridges, President Tsakhia Elbegdorj said in an interview at Bloomberg’s headquarters in New York. AVG TECHNOLOGIES, the Czech maker of Internet security software, plans to sell bonds to U.S. investors to raise money for dividends and acquisitions, Siobhan MacDermott , AVG’s Prague-based investor relations officer, said in an interview Feb. 10. The producer of a free antivirus program that competes with McAfee Inc. and Symantec Corp. is seeking to raise $300 million of debt, MacDermott said. TATA STEEL LTD., India’s biggest producer of the alloy, plans to sell $500 million of debt by the middle of this year, CNBC-TV18 news channel reported, without saying where it got the information. RODOPA EXPORTACAO DE ALIMENTOS & LOGISTICA LTDA, a Brazilian beef producer, may sell as much as $100 million in five-year bonds in the second half of this year or early next year, Chief Executive Officer Sergio Longo said Feb. 4 in an interview at the company’s headquarters in Sao Paulo. (Added Feb. 8. See http://www.tatuibi.com.br/ ) GAIL INDIA LTD., the nation’s largest natural gas distributor, plans to borrow $300 million overseas, P.K. Jain, director of finance, said in a telephone interview on Sept. 12. AL BARAKA BANK EGYPT ESC, a unit of Bahrain-based Albaraka Banking Group (BARKA) , may sell dollar-denominated Islamic bonds in the second half of 2011, the bank’s chairman said Sept. 29. The bank hasn’t decided on the size of the bond, he said. To contact the reporter on this story: Zeke Faux in New York at [email protected] To contact the editor responsible for this story: Alan Goldstein at [email protected] . |
Robin Ventura Is New Manager of Chicago White Sox, Replacing Ozzie Guillen.Former Chicago White Sox third baseman Robin Ventura was selected as the team’s new manager, 10 days after Ozzie Guillen left to join the Florida Marlins. Ventura, who played 10 of his 16 Major League Baseball seasons with the White Sox, agreed to a multiyear deal to become the team’s 38th manager, the White Sox said today in an e-mailed news release. Financial terms weren’t disclosed. The White Sox this year hired Ventura as a special adviser to Buddy Bell, the team’s director of player development. “When I rejoined the White Sox this June, I said this was my baseball home and that part of me never left the White Sox organization,” Ventura said in a statement. “My family and I are thrilled to be returning to Chicago.” It’s the first major league managerial job for 44-year-old Ventura, a career .267 hitter with 294 home runs and 1,182 runs batted in. Ventura, whose major league career spanned 1989-2004, also played three seasons with the New York Mets and had stints with the New York Yankees and Los Angeles Dodgers. After playing college baseball at Oklahoma State University, Ventura was drafted 10th overall by the White Sox in 1988. His 58-game college hitting streak is still a National Collegiate Athletic Association Division I record. “His baseball knowledge and expertise, his professionalism, his familiarity with the White Sox and Chicago and his outstanding character make him absolutely the right person to lead our clubhouse and this organization into the seasons ahead,” said White Sox General Manager Ken Williams. The franchise went 79-83 this season, finishing in third place in the American League Central division, 16 games behind the Detroit Tigers. Guillen was hired as the Marlins’ manager on Sept. 28, two days after being released by the White Sox, whom he guided to a 678-617 record in eight seasons, including a World Series title in 2005. To contact the reporter on this story: Mason Levinson in New York at [email protected]. To contact the editor responsible for this story: Michael Sillup at [email protected] . |
Consumer Comfort Index in U.S. Caps Worst Quarter Since ’09 on Job Outlook.Consumer confidence last week capped the worst quarterly performance in more than two years, when the U.S. economy was still in a recession. The Bloomberg Consumer Comfort Index rose to minus 50.2 in the week ended Oct. 2, from the prior period’s minus 53 that was the second-lowest level on record. The gauge averaged minus 48.4 from July through September, the third-worst quarterly reading of all time and the weakest since minus 49.9 in the first three months of 2009. Ninety-two percent of those surveyed had a negative opinion of the economy, underscoring the concerns of Federal Reserve Chairman Ben S. Bernanke , who this week said the central bank can take further steps to sustain a recovery that’s “close to faltering.” An ailing housing market, stagnant payrolls and stock-price declines have reduced Americans’ ability to spend. “A weak labor market and sagging incomes continue to place stress on households,” said Joseph Brusuelas , a senior economist at Bloomberg LP in New York. “Higher headline prices and stagnant incomes will likely provide further downward pressure on consumer sentiment.” Fewer workers than forecast filed claims for unemployment insurance payments last week, signaling companies may be starting to slow the pace of firings, another report today showed. Applications for jobless benefits increased by 6,000 in the week ended Oct. 1 to 401,000, Labor Department data showed. Economists projected 410,000 claims, according to the median estimate in a Bloomberg News survey. The monthly average dropped to the lowest level since the end of August. Comfort Breakdown Among the comfort index’s three components, the measure of personal finances rose to minus 9.1 last week from minus 11.6 the prior period. The buying climate gauge climbed to minus 57.3 from minus 61, which was the lowest level since the aftermath of the Lehman Brothers Holdings Inc. bankruptcy in October 2008. The index of American’s views on the economy rose to minus 84.3 from minus 86.4. Confidence remains depressed for groups especially hit hard by the recession that ended June 2009. Homeowner sentiment was minus 48.7, less than a point from a record low. The gauge for those with only a high school diploma was at minus 63, two points from the lowest level in data going back to 1990. The Bloomberg consumer comfort index, which began in December 1985, has been stuck below minus 40 -- the level associated with recessions or their aftermath -- since the end of February. It has averaged minus 45.9 this year, compared with minus 45.7 for 2010 and minus 47.9 in 2009. Recessionary Level The readings echo the time “when the Great Recession still was officially on,” Gary Langer , president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. “If it’s over, the public missed the memo.” Gains in payrolls in September were probably too small to reduce joblessness, a Labor Department report may show tomorrow. Employment climbed by 57,000 workers after no change in August, according to the median forecast in a Bloomberg News survey of economists. The unemployment rate was 9.1 percent for a third month, they projected. Stock market losses are eroding wealth. The Standard & Poor’s 500 Index closed below 1,100 on Oct. 3 for the first time in more than a year, putting the gauge within 1 percent of a bear market , a threshold defined by declines of 20 percent or more from the peak. The S&P 500 swung between gains and losses after European Central Bank President Jean-Claude Trichet said the euro-area economy faces “intensified downside risks.” The gauge fell 0.1 percent to 1,142.8 at 9:40 a.m. in New York. Cutting Back Costco Wholesale Corp. (COST) , the largest U.S. warehouse-club chain, said the strain on household budgets is helping drive more customers to its stores to save on items like groceries. “We’re concerned as every one of you are out there every day with the gyrations in the market and the mortgage statistics and the unemployment statistics,” Chief Financial Officer Richard Galanti said on a conference call with analysts yesterday. “If you asked us do we feel good about what’s going on out there, no, in terms of the economy.” The Fed last month decided to replace $400 billion of Treasuries in its portfolio with longer-term securities to further help reduce borrowing costs and trim unemployment. Those steps are “particularly important now that the economy is, the recovery is, close to faltering,” Bernanke said in testimony to Congress on Oct. 4. “The recovery from the crisis has been much less robust than we had hoped,” he said. Survey Details The Bloomberg Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers aged 18 and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses is subtracted from the share of positive views and divided by three. The most recent reading is based on the average of responses over the previous four weeks. The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. The margin of error for the headline reading is 3 percentage points. Field work for the index is done by SSRS/Social Science Research Solutions in Media, Pennsylvania. To contact the reporter on this story: Shobhana Chandra in Washington at [email protected] To contact the editor responsible for this story: Christopher Wellisz at [email protected] |
Windflow Technology Extends Deadline to Complete Stock Sale.New Zealand wind turbine maker Windflow Technology Ltd. (WTL) said it has extended the deadline to complete a stock sale to shareholders to Oct. 20, according to a stock exchange filing. The company had planned to raise NZ$2.4 million from the stock sale and a placement of the shares by Oct. 3. It has only raised NZ$1.3 million, it said. To contact the editor responsible for this story: Baldave Singh at [email protected] |
Foreign Investor Holdings of Turkish Shares and Bonds.Following is a table of the weekly foreign investor holdings of stocks and bonds for the week ending Sept. 30, from the Central Bank of Turkey in Ankara: To contact the reporter on this story: Harumi Ichikura in London at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
Sacyr Loan Rollover Rejected by Banks, Expansion Reports.Banks holding a 20 percent of the 4.9 billion-euro ($6.5 billion) loan used by Sacyr Vallehermoso SA (SYV) to buy 20 percent of Repsol YPF SA (REP) won’t agree to a rollover, Expansion reported, citing unidentified people close to the matter. Citigroup Inc. (C) , which holds a 10 percent of the loan, or about 500 million euros, may head the group of lenders declining to roll over the loan, the newspaper said. Other lenders in the group would be ING Groep NV (INGA) , Royal Bank of Scotland Group Plc (RBS) or several Portuguese lenders including Banco BPI SA (BPI) , Expansion said. More than 40 lenders participated in the loan, the newspaper added. To contact the reporter on this story: Manuel Baigorri in Madrid at [email protected] To contact the editor responsible for this story: Angela Cullen at [email protected] |
Default Talk, New Austerity Hurts Greek Economic Confidence.Greek economic confidence declined in September as the government announced additional cuts to pensions and wages amid heightened concerns the country would default. An index measuring short-term confidence among households and businesses fell to 70.6 from 73.7 in August, the Athens- based Foundation for Economic & Industrial Research said in an e-mailed report today. Consumer confidence dropped 2.4 points to minus 73.6, it said. Business expectations “remain adverse in all sectors while consumer confidence reflects the intense pessimism at the present and future economic juncture,” the foundation said. Prime Minister George Papandreou presented a 2012 budget with 6.6 billion euros ($8.7 billion) of extra savings this week as the government struggles to convince international creditors it can meet targets for receiving an 8 billion-euro loan instalment, originally due last month, needed to avoid default. Greeks will be asked to pay a new property tax on all homes owned, while public-sector workers will see their salaries cut by a further 20 percent on average and pensions reduced by 4 percent. The plans also include moving 30,000 state workers into a labor reserve system that will mean reduced pay and eventual dismissal. The economy is now forecast to shrink 5.5 percent this year and 2.5 percent next year, according to the budget. To contact the reporter on this story: Maria Petrakis in Athens at [email protected] To contact the editor responsible for this story: Angela Cullen at [email protected] |
Wiz Co Ltd Announces Planned FY Group Dividend of 0.00 Yen.Wiz Co Ltd (7835) (7835) announced full-year group dividend estimates for the period to May 31. Figures are in yen. ================================================================================ Forecast Previous Dividend ================================================================================ Full-Year Dividend 0.00 0.00 1st-Half Dividend 0.00 0.00 2nd-Half Dividend 0.00 0.00 ================================================================================ To contact the editor responsible for this story: Teo Chian Wei at +81-3-3201-3623 or [email protected] |
HRT Seeks Joint Venture With Ghana State Oil Company, CEO Says.HRT Participacoes em Petroleo SA (HRTP3) is seeking to form a joint venture with Ghana ’s state oil company, HRT Chief Executive Officer Marcio Mello told reporters today at an event in Rio de Janeiro. To contact the reporter on this story: Peter Millard in Rio de Janeiro at [email protected] To contact the editor responsible for this story: Jessica Brice at [email protected] |
Gannett Names Martore Chief Executive as Dubow Resigns Citing Disability.Gannett Co., publisher of newspapers including USA Today , promoted Gracia Martore to chief executive officer after Craig Dubow resigned for medical reasons. Martore, 60, has been president and chief operating officer at the company, and had overseen Dubow’s duties during his recent leave of absence, which was announced on Sept. 15. Dubow, 56, in recent years had hip and back surgery and has continued to experience chronic related issues, according to Robin Pence, a company spokeswoman. Dubow, who had been the company’s CEO since 2005, took a four-month leave of absence in 2009 following back surgery. As the newspaper industry has struggled and advertising has dropped amid the economic decline, Dubow cut costs at McLean, Virginia-based Gannett, which owns 23 television stations and 82 newspapers including USA Today. Revenue declined in each of the past four years, for a 32 percent drop to $5.44 billion in 2010. In June, the company cut 700 jobs at its community-newspaper group. Marjorie Magner, 62, a managing director at New York-based private-equity firm Brysam Global Partners and an independent director on the company’s board since 2006, was named to replace Dubow as chairman of the board. Gannett fell 1 cent to $10.45 on the New York Stock Exchange. Dubow’s resignation was announced after the market had closed. The stock has dropped 31 percent this year. To contact the reporter on this story: Brett Pulley in New York at [email protected] To contact the editor responsible for this story: Peter Elstrom at [email protected] |
Rooney’s Father, Eight Men Arrested in Scottish Soccer Game Betting Probe.Nine men were arrested today as part of a probe of suspicious betting patterns in a Scottish Premier League soccer match. The father of Manchester United striker Wayne Rooney was among those questioned, Sky Sports News said. A spokeswoman for the Merseyside Police Department in the greater Liverpool area could not confirm the involvement of Wayne Rooney Sr. Sky Sports reported the 48-year-old was released on bail after being arrested at his home in West Derby, Liverpool. The arrests in Liverpool and Glasgow relate to a match between Motherwell and Hearts on December 14, 2010, Merseyside Police said in a statement on its website, without providing further details. Motherwell midfielder Steve Jennings was arrested at his home in Glasgow today as part of the probe, the Scottish Football Association said in a statement on its website. The Liverpool native received a second yellow and was dismissed after complaining to referee Stevie O’Reilly in the 82nd minute of Motherwell’s 2-1 loss to Hearts. “While the investigation involves several other individuals outwith Scotland , it is important to stress that the evidence gathered throughout this thorough period of investigation has involved only one Scottish match,” SFA Chief Executive Officer Stewart Regan said in the statement. “Motherwell F.C. are aware of the situation and will issue a response in due course. The Scottish F.A. will make no further comment at this stage.” None of the arrested men, who range in age from 22 years to 68 years, were identified in Merseyside Police’s statement. To contact the reporter on this story: Bob Bensch in London at [email protected]. To contact the editor responsible for this story: Christopher Elser at [email protected] . |
Brazil IGP-DI Inflation Index Rose 0.75% in September.The following table is a summary of the IGP-DI inflation report from Getulio Vargas Foundation in Rio de Janeiro. IGP-DI monitors inflation from the 1st to the 30th of each month. To contact the reporter on this story: Dominic Carey in Sao Paulo at [email protected] To contact the editor responsible for this story: Marco Babic at [email protected] |
✓ Gasoline Cargoes to U.S. to Slide 35% on European Refinery Maintenance.Gasoline shipments to the U.S. from Europe will decline over the next two weeks as refineries on both sides of the Atlantic Ocean enter a maintenance period to prepare for accelerated winter fuel production. Twenty tankers were booked or due to be chartered for loading in the two-week period, according to the median estimate in a Bloomberg News survey of three shipbrokers, one owner and one trader yesterday. That’s the lowest since the end of August and down 35 percent from 31 tankers last week. Refiners in Europe have cut production to conduct plant maintenance and in response to declining processing profits. Eni SpA (ENI) , Hellenic Petroleum SA and Ineos Group AG are among companies to have halted or slowed output. “We have seen many refiners cutting runs because crude-oil prices are too high compared to product prices,” Ehsan Ul-Haq, senior market consultant at KBC Energy Economics, said yesterday by phone from Walton-on-Thames, England. “As long as they don’t make a profit, it doesn’t make sense to carry on refinery operations.” Gasoline stockpiles in independent storage in Amsterdam- Rotterdam-Antwerp, Europe’s oil-trading hub, plummeted to the lowest level in almost eight years in the week to Sept. 29, according to PJK International BV. The auto fuel for November delivery rose 0.5 percent to $2.5828 a gallon by 1 p.m. London time on the New York Mercantile Exchange. Shipments to Asia The closing of Royal Dutch Shell Plc’s largest refinery, in Singapore , may also draw more refined oil products from Europe, according to James Zhang, an energy strategist at Standard Bank Plc. Shell said today the offshore plant would stay shut until investigations into last week’s fire conclude. Of the 20 vessels in the survey, known in the industry as medium-range tankers, 11 have been booked and nine will probably be hired, according to the responses. They will be able to carry about 6.3 million barrels of gasoline, or 450,000 barrels a day over the next two weeks. The daily rate is 54 percent of the 835,000 barrels the U.S. imported over the past year, according to the U.S. Department of Energy. There are 32 vessels likely to be available to carry trans- Atlantic gasoline cargoes, nine more than in last week’s survey. Daily rental income for tankers carrying the fuel across the Atlantic yesterday fell 14 percent, the most in almost a month, to $9,314, according to the Baltic Exchange in London. The survey is based on so-called single-voyage, or spot, charters and excludes loadings under longer-term contracts. It assumes shipments to the U.S. East Coast from northwestern Europe. Each tanker would normally haul about 37,000 tons of cargo, or 315,000 barrels. Charter rates on the route fell 5.1 percent to 159.17 industry-standard Worldscale points yesterday, according to the exchange. The points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. Flat rates for every voyage, quoted in U.S. dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates. To contact the reporter on this story: Isaac Arnsdorf in London at [email protected] To contact the editor responsible for this story: Alaric Nightingale at [email protected] |
EU to Propose Coordinated Action on Bank Recapitalizations.The European Union plans to propose “coordinated action” on recapitalizing banks in the region. “The commission will propose coordinated action on bank recapitalization to member states,” Alejandro Ulzurrun de Asanza y Munoz, a spokesman for the European Commission, the EU executive, told reporters today in Brussels, reiterating comments made earlier today by Commission President Jose Barroso. “We are making a proposal so that we can act together in a coordinated fashion,” the spokesman said. To contact the editor responsible for this story: Jones Hayden at [email protected] |
‘Evening Star’ Indicates 10-Year Yield Rise, RBS Says: Technical Analysis.An “evening star” trading pattern indicates Treasury 10-year note yields are poised to rise after the securities reached overbought levels this week, according to Royal Bank of Scotland Group Plc. “As 10-year yields approached and went through 1.75 percent, it reinforces our range thinking that the bottom of the range is 1.70 to 1.75 percent for the foreseeable future, unless facts change or change significantly,” said William O’Donnell , head U.S. government bond strategist at the bank’s RBS Securities unit in Stamford , Connecticut , in an interview. The yield on the 10-year note dropped to 1.756 percent on Oct. 3, the lowest since its record low on Sept. 23. It closed at 1.82 percent the next day and 1.9 percent yesterday, which formed an evening star pattern on a candle chart by a sharp drop in yields on the first day, followed by a correction on the second and third days. “What this pattern indicates is that we could have a deeper correction and the next level in 10-year yields may be 2.06 percent to 2.12 percent in the next two to three weeks,” he said. “Buyers should be patient and wait for cheaper levels than we see today, especially with supply next week.” Yield Path The yield on the 10-year note rose today to 1.97 percent, the highest since Sept. 30. The yield touched a record low of 1.67 percent on Sept. 23. The Treasury Department plans to sell $32 billion of three-year notes, $21 billion of 10-year debt and $13 billion of 30-year bonds in auctions next week. “There are signs as evidenced by this pattern in particular that we got into deep overbought conditions and now that’s being unwound,” O’Donnell said. “It indicates a shift of power where the bulls had control on Monday; Tuesday was the battle between the bulls and the bears, and Wednesday tells you that the bears won.” The risks to the forecast are further European financial deterioration or weaker-than-forecast U.S. economic data, O’Donnell said. In technical analysis , investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. To contact the reporter on this story: Susanne Walker in New York at [email protected] To contact the editor responsible for this story: Dave Liedtka at [email protected] |
Euro Pares Decline Against Dollar, Trades 0.3% Lower at $1.3310.The euro pared its decline against the dollar, trading 0.3 percent lower at $1.3310 as of 2:27 p.m. in London. To contact the reporter on this story: Daniel Tilles in London at [email protected] To contact the editor responsible for this story: Daniel Tilles at [email protected] |
Ruble Gains for Second Day, Adds 0.2% Against U.S. Dollar.The ruble gained for a second day, adding 0.2 percent to 32.4924 per dollar by 10:05 a.m. in Moscow. The Russian currency was little changed at 43.3525 versus the euro. To contact the editor responsible for this story: Denis Maternovsky at [email protected] |
Philippine Stocks: Aboitiz, Ayala, Megaworld, SM Development.Shares of the following companies had unusual moves in Philippine trading. Stock symbols are in parentheses and prices are as of the close in Manila. The Philippine Stock Exchange Index increased 1.8 percent to 3,890.52, its first gain in four days. Builders: Megaworld Corp. (MEG) , a builder of offices for call centers , snapped three days of losses, advancing 3.9 percent to 1.60 pesos after the Philippine Daily Inquirer reported that office rental rates in Manila rose in the second quarter. Ayala Land Inc. (ALI) , the nation’s largest developer, climbed 1.9 percent to 14.32 pesos, the highest close this week. Filinvest Land Inc. (FLI) rose 3.8 percent to 1.09 pesos, the sharpest gain since Sept. 28. The increase in office rentals was driven by demand from providers of outsourced business services, the Inquirer reported, citing Rick Santos, chief executive at CB Richard Ellis Philippines. Santos couldn’t be reached in his office for comment. Aboitiz Power Corp. (AP) climbed for a third day, rising 1.1 percent to 28.30 pesos, the highest close this week. AP Renewables Inc., a unit of the company, signed a 10-year contract to provide electricity to a province in the southern Philippines, the Philippine Star reported, citing Miguel Aboitiz, vice president at AP Renewables. Aboitiz couldn’t be reached at his office for comment. International Container Terminal Services Inc. (ICT) , the largest Philippine port operator, rose 1.6 percent to 46.65 pesos, ending a three-day slump. ICTSI Warehousing Inc., a unit of International Container, acquired two million shares of the company in the open market, a stock exchange filing showed. SM Development Corp. (SMDC) climbed 3.3 percent to 7.43 pesos, the highest close since Sept. 23. The stock advanced for a third day, its longest winning streak in a month. The company is set to reach its target of selling between 11,000 to 12,000 housing units this year, BusinessWorld reported, citing Vice President Jose Gabionza. Gabionza couldn’t be reached in his office for comment. To contact the reporter on this story: Ian C. Sayson in Manila at [email protected] To contact the editor responsible for this story: Darren Boey at [email protected] |
Stocks Show Signs of Bottoming, Bartels Says: Technical Analysis.The Standard & Poor’s 500 Index is showing signs of bottoming as trading slows during declines, according to Mary Ann Bartels of Bank of America Corp. About 13.1 billion shares changed hands on U.S. exchanges on Oct. 4, when the benchmark for U.S. equities fell as low as 1,074.77, the lowest intraday level since Sept. 1, 2010, according to Bloomberg data. On Aug. 8, when the index set the prior 2011 low, volume surged to 17.9 billion, the data show. “Lower volume as the market declines points to diminishing selling pressure and is a sign of base-building,” Bartels, ranked third among analysts who study price charts in Institutional Investor’s 2010 survey, wrote in a note to clients yesterday. “There are early signs of the equity market trying to hammer out a bottom.” Concern that Europe ’s debt crisis will drive the global economy into a recession pushed the S&P 500 down 19 percent between April 29 and Oct. 4, posing the biggest challenge to the bull market that began in 2009. The index closed under 1,100 for the first time in more than a year on Oct. 3, falling below the price range that held since August and putting the gauge within 1 percent of a bear market. The benchmark reversed losses in the final hour of trading on Oct. 4 after a report in the Financial Times quoted Olli Rehn , European commissioner for economic affairs, as saying there is an “increasingly shared view” that the region needs a coordinated approach to halt the sovereign debt crisis. The reversal, followed by another advance in the S&P 500 yesterday, confirms a Japanese candlestick bottoming pattern and suggests the rally is likely to continue, according to Bartels. “It generally takes several months to complete a bottoming process,” she said. “This process can involve additional tests and/or undercuts of the 1,100 and 1,075 area lows.” The S&P 500 rose 1.8 percent to 1,144.03 yesterday. To contact the reporter on this story: Lu Wang in New York at [email protected] To contact the editor responsible for this story: Nick Baker at [email protected] |
German 10-Year Bonds Erase Decline, Leaving Yield at 1.83%.German 10-year bonds erased a decline, leaving the yield little changed at 1.83 percent as of 12:55 p.m. in London. The rate earlier rose seven basis points to 1.91 percent. The yield on two-year notes was one basis point lower at 0.49 percent. To contact the reporter on this story: Paul Dobson in London at [email protected] To contact the editor responsible for this story: Daniel Tilles at [email protected] |
Percentage of Americans Feeling Healthy Rises.Following is a summary of the latest Gallup daily survey of Americans’ assessment of their health. |
Qatar Airways Plans ‘Multi-Billion-Dollar’ Jet Order Next Month, CEO Says.Qatar Airways Ltd., the Middle East ’s second-biggest carrier, plans to place a “multi-billion-dollar aircraft order” at the Dubai Air Show next month, Chief Executive Officer Akbar al Baker said today. The Gulf airline already has orders for more than 200 aircraft with a value in excess of $40 billion at list prices, Al Baker said at a press conference in Oslo, without specifying whether he’s interested in more single-aisle or widebody jets. Qatar Airways failed to place an order for Airbus SAS’s A320neo at the Paris Air Show in June after earlier saying it would sign a deal for the re-engined version of the European company’s narrowbody model. The requirement to be filled at the Dubai expo starting Nov. 13 isn’t for Qatar’s planned discount unit, which would use existing jets, Al Akbar said today. “The low-cost airline would be launched with the aircraft we already have,” he said. “We will not buy new planes. We cannot have very high ownership costs.” The discount project is “very much alive,” the CEO added, though will be implemented only if and when low-cost rivals begin to affect market share. Qatar Air also aims to announce a route to Helsinki “imminently,” the CEO said today, after the Doha-based carrier began flights to Norway yesterday. It already operates to the Nordic capitals of Stockholm and Copenhagen. ‘Delayed Indefinitely’ Al Baker said plans for an initial public offering are on hold given the likely impact of concern about the global economy and pending completion of the carrier’s expansion program. Qatar had been considering a share sale to fund its strategy of establishing Doha as a hub for long-haul travel between North America and Europe and the high-growth economies of Asia. “The IPO has been delayed because of the global economic situation,” the executive said, adding that it would be “foolish” to go ahead with a sale right now. “I don’t think it’s the right time. So it has been delayed indefinitely until we see the light at the end of the tunnel.” Qatar Airways currently operates about 100 aircraft to more than 100 destinations in Europe, the Middle East, Africa , the Asia-Pacific and the Americas, and plans to serve more than 120 routes by 2013 with a fleet exceeding 120 planes. Al Baker indicated at the Paris Air Show that plans to buy Bombardier Inc.’s CSeries plane, a rival to the Airbus A320, were on hold. ‘Good Year’ Qatar Airways is forecasting a profit for the fiscal year ending March 31 “similar” to the $220 million posted last year, Al Baker said. “As the oil price is going down we think we’ll again have a very good year,” he said. First-half earnings were “very good,” he added, while declining to give specific figures. Al Baker declined to say whether Qatar Airways will look at Deutsche Lufthansa AG (LHA) ’s BMI unit, which may be offered for sale, or Richard Branson ’s Virgin Atlantic Airways Ltd., which has been seeking a partner. Both carriers are major operators at London ’s Heathrow airport, the busiest in Europe. “I don’t know,” the executive said. To contact the reporter on this story: Ola Kinnander in Oslo at [email protected] To contact the editor responsible for this story: Chad Thomas at [email protected] |
Samsung, Oracle, AstraZeneca, Style Empire, Berjaya: Intellectual Property.Samsung Electronics Co. aims to stop Apple Inc. (AAPL) ’s iPhone 4S handset being sold in France and Italy on patent-infringement claims, escalating the dispute between the world’s two biggest makers of smartphones and tablets. Samsung will file motions with courts in Paris and Milan seeking the ban, each citing two patent infringements on wireless telecommunications technology, the Suwon, South Korea- based company said in an e-mailed statement Oct. 5. Apple unveiled the iPhone 4S in Cupertino, California this week and aims to start sales later this month. The move adds to legal disputes that began in April, when Apple claimed that Samsung’s Galaxy devices “slavishly” copied the iPad and iPhone. At stake is dominance in the fastest- growing segment of the $207 billion mobile-phone market, where Apple is competing against makers of handsets powered by Google Inc. (GOOG) ’s Android operating system. Steve Park, a Seoul-based spokesman for Apple, declined to comment on Samsung’s statement. Florence Catel, a spokeswoman for Samsung France, didn’t have any additional information on when the suit will be filed or when a hearing will take place. Samsung plans to file preliminary injunctions in other countries after further review, it said in the statement. Apple is also one of the South Korean company’s biggest buyers of chips and displays. “Apple has continued to flagrantly violate our intellectual property rights and free ride on our technology,” Samsung said. Apple this week introduced the iPhone 4S equipped with a faster processor, a higher-resolution camera and a new software interface to help it vie with Google’s Android, which powers Samsung’s Galaxy phone and tablets. At stake is leadership in the market for smartphones, which is projected to double by 2015, when 1 billion of the handsets will be sold, according to research firm IDC. While Apple is the single biggest smartphone maker, the Android coalition leads the market, accounting for 41.7 percent. The iPhone accounted for almost half Apple’s sales in the most recent quarter. Apple had earlier won backing from a Dusseldorf court that upheld a temporary ban on sales of the Galaxy Tab 10.1 in Germany. Samsung filed an appeal against the ruling. In Australia , Apple has delayed the release of the product for two months by seeking a temporary judicial ban. Samsung will abandon plans to sell the Galaxy Tab 10.1 in Australia if it doesn’t win approval to sell it in the next two weeks, Neil Young, a Samsung lawyer, told Federal Court Justice Annabelle Bennett in Sydney this week. Missing the Christmas season would result in the new tablet being “dead,” he said. Oracle Trial With Google Over Java Will Probably Be Delayed Oracle Corp. (ORCL) ’s trial over whether Google Inc.’s Android software infringed its patents for Java technology will likely be postponed from its scheduled Oct. 31 start, a federal judge said. U.S. District Judge William Alsup, who will preside over the trial in San Francisco , said in a court filing yesterday that an unrelated criminal trial that will begin Oct. 17 means it’s “unlikely” the Oracle-Google case can go forward as scheduled. Alsup didn’t say when the Oracle trial would be held. Oracle is seeking billions of dollars in damages from the operator of the world’s largest search engine. The Redwood City, California-based company accuses Google of infringing its patents and copyrights for the Java programming language in the Android operating system, now running on more than 150 million mobile devices. Google, based in Mountain View, California, has denied the claims. The case is Oracle America Inc. v. Google Inc., 3:10-03561- WHA, U.S. District Court, Northern District of California (San Francisco). AstraZeneca Says It Settled Seroquel Patent Suit Against Accord AstraZeneca Plc (AZN) , the London-based pharmaceutical company that makes the schizophrenia treatment Seroquel, said it settled patent litigation against Intas Pharmaceuticals Ltd.’s Accord Healthcare unit that was related to the drug. According to a company statement released yesterday, as part of the settlement, Accord was been granted a license to enter the U.S. market on Nov. 1, 2016. Additionally, the Intas unit has agreed not to dispute the validity or enforceability of the patents that were at issue in the case. AstraZeneca’s remaining Seroquel patent cases are ongoing, according to the company statement. The British pharmaceutical company sued Accord in federal court in Trenton, New Jersey , in February 2009. AstraZeneca claimed Accord was infringing patents 4,879,288 and 5.948,437. The case is AstraZeneca Pharmaceuticals LP v. Accord Healthcare Inc., 3:09-cv-00619-JAP-TJB, U.S. District Court, District of New Jersey (Trenton). U.S. Consumer Safety Commission Votes to Study Table Saws The U.S. Consumer Product Safety Commission voted 5-0 yesterday to take the first steps toward regulating table saws, which have been blamed for more than 4,000 finger, hand and arm injuries a year. The agency will examine technologies, such as those offered by closely held SawStop LLC, which can stop the blade instantly when human flesh is detected and may eventually issue a rule, Scott Wolfson, an agency spokesman said. The CPSC will seek comments from the industry and the general public before moving to a more specific proposal, he said. Stephen Gass, founder of Tualatin, Oregon-based SawStop, first petitioned the CPSC more than eight years ago to consider his technology after being turned down by power-tool companies on licensing deals. The Power Tool Institute, which represents manufacturers such as Robert Bosch GmbH, Stanley Black & Decker Inc. (SWK) , Ryobi Ltd., and Techtronic Industries Co., warned that a mandatory standard could create a monopoly for Gass, who they say has locked up more than 70 patents. “Unfortunately, for consumers, such a mandatory standard could as much as quadruple the cost of current, inexpensive saws and significantly increase the cost of professional saws on the market today,” Susan Young, executive director of the Cleveland-based Power Tool Institute, said in a statement. Ryobi Ltd. and its U.S.-based power-tool distributor were hit with a $1.5 million personal-injury verdict in March 2010 involving the Japanese company’s failure to take a license to patent safety-tool technology. In that case, the plaintiff claimed that Hiroshima-based Ryobi knew, ever since a November 2000 meeting of a power-tool trade group, that a technology existed to detect the proximity of human flesh to a saw blade and stop the saw instantly. The jury found that Ryobi and its distributor sold a product that was defectively designed, and that plaintiff Carlos Osorio lacked full knowledge of the product’s defect and danger. Although Home Depot Inc. (HD) , which sold the saw, was also a defendant, the jury found no liability on the retailer’s part. Ryobi appealed, and the lower court ruling was upheld by an appeals court yesterday. At the time of the lower court ruling, the Oregonian newspaper reported that 60 similar cases were pending nationwide. That case was Osorio v. One World Technologies Inc., 1:06- cv-10725-NMG, U.S. District Court, District of Massachusetts (Boston). The appeals court case is Osorio v. One World Technologies, 10-1824, U.S. Court of Appeals for the First Circuit. For more patent news, click here. Trademark EA Files Application for Two ‘Style Empire’ Trademarks for Games Electronic Arts Inc. (ERTS) , the Redwood City company known for its sports-oriented computer games such as Madden NFL , may be looking far from the sports world for its next game if a recent filing with the U.S. Patent and Trademark Office is any indication. According to the patent office database, EA filed two applications Sept. 26 to register “Style Empire” as a trademark. The marks are for computer game software and an online computer game. The Joystiq website, which follows computer game development, speculates that the marks will be used with “a casual and/or social game” or a “new massive multiplayer rhythm dress-up motion game.” The applications were filed by Vineeta Gajwani , EA’s in- house IP counsel. Berjaya Acquired Borders Trademark Rights for Malaysia Berjaya Corp. Bhd has acquired all rights to the Borders trademarks in Malaysia, the country’s Sun newspaper reported. The mark was acquired from the liquidators of Borders Group Inc. and was approved by the bankruptcy court in New York , according to the Sun. As a result of the acquisition, Malaysia will be the only country in Southeast Asia where Borders still operates, the newspaper reported. The rights acquired cover both Internet-based retail businesses and brick-and-mortar stores, according to the Sun. For more trademark news, click here. Copyright Copyrights for Foreign Works Scrutinized by U.S. High Court The U.S. Supreme Court grappled with a challenge to a federal law that gave new copyright protection to millions of foreign-produced books, movies and musical pieces that once were in the public domain. In an hour-long argument yesterday that touched on the work of Jimi Hendrix, Aaron Copland and William Shakespeare, the justices signaled they are divided over the constitutionality of the 1994 statute, which aimed to harmonize U.S. copyright law with rules in other countries. The measure applied to works that had been excluded from the American copyright system for various reasons. The case has implications for the U.S. film and music industries, which are urging broad copyright protection, and Google Inc., which is asking the court to ensure the availability of works that are central to its digital-book project. The court’s ruling will affect rights to works by Alfred Hitchcock, Pablo Picasso, Igor Stravinsky and C.S. Lewis, according to opponents of the law. Justice Stephen Breyer emerged as a skeptic of the law, pointing to what he said was a “treasure trove” of foreign- produced literature and music that groups are working to post on the Internet. Justice Ruth Bader Ginsburg took the other side, saying the measure gave foreign composers like Stravinsky and Dmitri Shostakovich copyright protection for “the same limited time as Aaron Copland,” the late American composer. The 1994 law is being challenged by a group of orchestra conductors, educators, performers, film archivists and movie distributors who say they will lose access to important material. Leading the group is Lawrence Golan, a music professor at the University of Denver who sued in 2001. The group’s lawyer, Anthony Falzone, said the law “took millions of works out of the public domain, where they had been for decades.” Congress approved the law to meet obligations stemming from the so-called Uruguay Round of international trade talks. The motion-picture and music industries pushed for the provision to secure reciprocal copyright protection for American works abroad. The measure, known as Section 514, applied to foreign works that were excluded from American protection, in some cases because the U.S. didn’t have copyright relations with the author’s home country and in other cases because the U.S. hadn’t yet recognized copyrights on sound recordings. The law gave those authors the copyright protection they otherwise would have had. The Obama administration is defending the law, arguing that Congress has the constitutional power to remove works from the public domain. Donald Verrilli, making his first argument before the court since being sworn in as U.S. solicitor general, today called the law “essentially the price of admission to the international system.” The case is Golan v. Holder, 10-545. For more copyright news, click here. IP Moves Akin Gets Texas Magistrate, McDermott Litigator for IP Group Akin Gump Strauss Hauer & Feld LLP added two lawyers to its IP practice group, the Washington-based firm said in a statement. The two new hires are Charles Everingham IV and David M. Stein. Everingham is a former magistrate judge for the Eastern District of Texas, a popular venue for patent-infringement cases. He handled more than 75 of the hearings that determined the scope of a patent, commonly known as Markman hearings. He presided, by stipulation of the parties, over more than 200 civil cases, the majority of which were IP disputes involving complex technology. Before he was selected as magistrate judge in 2000, he served for seven years as permanent law clerk to U.S. District Judge T. John Ward of that same judicial district. He has an undergraduate degree from Stephen F. Austin State University and a law degree from Baylor University. Stein , who joins from Chicago ’s McDermott Will & Emery, is a litigator who headed his former firm’s East Texas practice group. He has represented clients in IP disputes related to semiconductor devices and processing, medical devices, sporting goods and business methods. He has an undergraduate degree from Stanford University and a law degree from Georgetown University. To contact the reporter on this story: Victoria Slind-Flor in Oakland, California, at [email protected]. To contact the editor responsible for this story: Michael Hytha at [email protected] . |
Light Studying Purchase of Minority Stake in Norte Energia.Light SA (LIGT3) is studying the purchase of a minority stake in Norte Energia SA, which is responsible for the construction and future operation of a hydroelectric plant, according to a statement to Brazil ’s regulator. To contact the reporter on this story: Jonathan Roeder in Mexico City at [email protected] To contact the editor responsible for this story: Jonathan Roeder at [email protected] |
Russia Reduces Rail Tariffs for Grain, Flour From Siberia.Russia’s Federal Service on Tariffs reduced charges on the transportation of grain and flour exports from the Siberian federal district and Kurgan region, the service said. The tariffs will be cut by half for distances that exceed 1,100 kilometers (684 miles), the service said today on its website, without providing cash amounts. The reduction will run through June 30 next year for shipments to ports and railway stations on the borders with North Korea , China and Mongolia, the service said. The new rate will apply through Dec. 31 for shipments to the border with Ukraine, it said. The same reduction will apply to shipments of soybeans and soybean oil meal from the Far Eastern federal district to all destinations through June 30, the service added. Russia’s government was looking at lowering the cost of hauling grain by rail to help farmers in the country’s interior sell their crops, Sergei Sukhov, the Agriculture Ministry ’s deputy head of agriculture market regulation, said in August. To contact the reporter on this story: Marina Sysoyeva in Moscow at [email protected] To contact the editor responsible for this story: Claudia Carpenter at [email protected] |
VEB May Become Gazprombank Shareholder, Vedomosti Says.Vnesheconombank, Russia ’s state development bank which is known as VEB, may convert a 90 billion ruble ($2.76 billion) loan to OAO Gazprombank into shares, Vedomosti reported today, citing unidentified officials familiar with the plan. Gazprombank’s shareholders approved the new shares issue, according to the Moscow-based newspaper. The state bank may get between 17 percent and 19 percent of Gazprombank, according to the lender’s valuation made in June, Vedomosti said. To contact the reporter on this story: Yuliya Fedorinova in Moscow at [email protected] To contact the editor responsible for this story: John Viljoen at [email protected] |
Gilts Rally After the Bank of England Expands Its Bond Purchasing Program.U.K. gilts rallied after the Bank of England unexpectedly expanded its bond purchase program to stimulate the economy while leaving its benchmark interest rate unchanged at a record low 0.5 percent. The gains pushed down yields on 10-year gilts by nine basis points to 2.27 percent as of 12:07 p.m. in London. Two-year note yields sank six basis points to 0.52 percent. The nine-member Monetary Policy Committee led by Mervyn King raised the ceiling for so-called quantitative easing to 275 billion pounds from 200 billion pounds, the first increase in the program since 2009. Twenty-one of 32 economists in a Bloomberg News survey forecast no change, and the rest predicted increases ranging from 50 billion pounds to 100 billion pounds. To contact the reporter on this story: Garth Theunissen in London at [email protected] To contact the editor responsible for this story: Daniel Tilles at [email protected] |
Barco to Supply Coronis Displays to Labmedecin Skane in Sweden.Barco NV (BAR) said it won a contract to supply 25 Coronis Fusion 6MP DL displays to four Swedish laboratories of Labmedecin Skane, according to a statement on its website. To contact the editor responsible for this story: John Martens at [email protected] |
Manhattan Office Prices Plateau as Slowing Economy Limits Investor Demand.Manhattan office prices have plateaued after coming within 18 percent of their mid-2007 peak, as Europe ’s debt crisis, bank job cuts and the economic slowdown limit demand, Green Street Advisors Inc. said. “Manhattan may face headwinds in coming months,” the Newport Beach , California-based research firm wrote today in a report on its index of office prices in the borough. The “rebound off the trough may have run its course,” it said. Investment-quality offices in Manhattan have rebounded after losing 54 percent of their value in the wake of the 2008 credit crisis, which made loans for property purchases scarce, according to the report. Property buyers flocked to New York in the last two years, looking for safety and steady cash flow in the biggest, most expensive U.S. office market. Office prices were “virtually unchanged” for the four months through September, Green Street said. Capitalization rates, a measure of real estate returns, have stalled at about 4.5 percent in midtown Manhattan after reaching 7.9 percent after the credit meltdown. Cap rates are net operating income divided by the sales price, so they go down as values rise. While value gains have stalled, “investor demand remains healthy, as a broad ‘flight to quality’ may provide stability for top buildings with secure cash flows,” Green Street said. ‘Too Frothy’ Demand for high-quality, well-leased properties in coastal cities like New York became “too frothy” in the last six months, said Ronald Dickerman, president of Madison International Realty Investors, a real estate private-equity firm based in Manhattan. “Everybody’s been chasing the same deals,” he said. In the first half of the year, investors were willing to accept lower yields on the expectation of robust rent increases that would “make everything okay five years from now,” Dickerman said in a phone interview. “Now all of a sudden people are scratching their heads and saying, wait a minute, the economy is looking much softer than people thought.” Cutbacks at financial firms may restrain demand for office properties as the U.S. unemployment rate hovers above 9 percent. Global financial companies have announced plans to cut more than 120,000 jobs this year, according to data compiled by Bloomberg Industries. Four Landlords Only the values of Manhattan offices owned by REITs and other publicly traded real estate companies are used to calculate Green Street’s index, which includes completed sales and deals being negotiated. The gauge is dominated by buildings owned by four companies: Boston Properties Inc. (BXP) , Brookfield Office Properties, SL Green Realty Corp. (SLG) and Vornado Realty Trust. (VNO) New York overtook London as the top commercial-property investment market for the first time since 2007 after improved access to financing spurred more U.S. deals, brokerage Cushman & Wakefield said yesterday. Investment in the New York area grew 166 percent in the 12 months through August from a year earlier. Manhattan office leasing declined 36 percent in the third quarter as demand retreated from a 12-year high reached in the previous three months, Cushman said Oct. 4. A total of 6.4 million square feet (594,600 square meters) of leases were signed in the three months through September, down from about 10 million in the second quarter, when Conde Nast Publications Inc. signed a 1 million-square-foot deal at 1 World Trade Center in lower Manhattan, according to the New York-based brokerage. Prices for commercial properties in the U.S. were unchanged last month, Green Street said in a separate report. Values remain about 9 percent below their August 2007 peak, after rising 48 percent from the bottom reached in May 2009, according to the report. Market momentum “has ebbed as the economy has weakened and fear has crept into the markets in recent months,” the firm said. To contact the reporter on this story: David M. Levitt in New York at [email protected] To contact the editor responsible for this story: Kara Wetzel at [email protected] |
Tasweeq to Sell Deodorized, Low-Sulfur Condensate for December.Qatar International Petroleum Marketing Co., known as Tasweeq, offered to sell deodorized field condensate and low-sulfur condensate for December, according to documents e-mailed to potential buyers. Details of the offer are as follows: To contact the reporter on this story: Christian Schmollinger in Singapore at [email protected] To contact the editor responsible for this story: Paul Gordon at [email protected] |
JICA to Ask Underwriter SMBC Nikko About Insider-Trading Probe.Japan International Cooperation Agency, a government body providing development assistance, said it asked SMBC Nikko Securities Inc., the lead underwriter for its bond sale, to explain its insider-trading probe. JICA , as the agency is known, will invite bankers from SMBC Nikko as early as this week to account for the investigation by Japan’s securities watchdog over possible insider-trading violation, said Yoshifumi Omura, director of capital markets division at the Tokyo-based body. The decision on whether to exclude the brokerage as an underwriter for its 20 billion yen ($261 million) bond sale in December will be made based on the findings, he said. “We are now examining the situation,” Omura said today in an interview in Tokyo. “We are not making any decisions until we conduct some hearings.” JICA has hired SMBC Nikko, Daiwa Securities Group Inc. (8601) and Mitsubishi UFJ Morgan Stanley Securities Co. to underwrite the planned bond sale for individual investors. SMBC Nikko is being investigated by Japan’s Securities and Exchange Surveillance Commission for a possible insider trading violation by an executive, the brokerage said in an e-mailed statement. The executive allegedly told an acquaintance that management of Enoteca Co., a Japanese wine importer, was preparing to buy the company’s shares through a tender offer, the Asahi newspaper reported earlier today, without saying where it got the information. The acquaintance traded the stock before the management buyout was announced, the newspaper said. Nissan Financial Services Co., a financial unit of Nissan Motor Co., today dropped SMBC Nikko from a planned bond sale, according to a statement from Mitsubishi UFJ Morgan Stanley. (MS) The statement didn’t elaborate on the reason for the exclusion. Mitsubishi UFJ, Citigroup Inc. and Goldman Sachs Group Inc. will still manage the next sale, the statement said. To contact the reporters on this story: Takahiko Hyuga in Tokyo at [email protected] ; Takako Taniguchi in Tokyo at [email protected] To contact the editor responsible for this story: Chitra Somayaji at [email protected] |
Brewin Dolphin Says ‘Difficult’ Market Conditions May Continue.Brewin Dolphin Holdings Plc (BRW) , a U.K. stockbroker and fund manager, said it’s expecting tough market conditions to continue after reporting a 3.4 percent rise in funds under management. Total managed funds rose to 24 billion pounds ($37 billion) as of Sept. 30 from 23.2 billion pounds at about the same period a year ago, Brewin Dolphin said in a statement today. The fourth quarter has “seen difficult market conditions,” it said. London-based Brewin Dolphin joins fund managers including Aberdeen Asset Management Plc, which said last month that funds under management dropped 4.8 percent in July and August as the global stock market rout depressed asset values. Brewin Dolphin rose 3 pence to 114.1 pence at 8:37 a.m. in London trading today. To contact the reporter on this story: Ambereen Choudhury at [email protected] To contact the editor responsible for this story: Edward Evans at [email protected] |
Apple Co-Founder Steve Wozniak Comments on Steve Jobs’s Passing.Steve Wozniak, co-founder of Apple Inc. (AAPL) , comments about Steve Jobs , in an interview with Bloomberg Television. Apple issued a statement saying Jobs died Oct. 5. He stepped down as chief executive officer of the Cupertino, Calif.-based company in August after combating a rare form of cancer. “He was one of those cool guys. He knew technology, he understood it. We talked about the philosophies of the day, the hippy movement, words in songs and went to concerts together. It was a strong friendship. “‘Technology was happening on the side. Largely I was building things that I was great at and Steve wanted to have importance in the world, he wanted to have companies.” To contact the reporter on this story: Naoko Fujimura in Tokyo at [email protected] To contact the editor responsible for this story: Young-Sam Cho at [email protected] |
Turkish 12-Month Inflation Estimate Rose to 6.78 Percent.Turkish forecasts for inflation rose in a fortnightly central bank survey of economists and business leaders. Inflation in 12 months time was expected at 6.78 percent compared with an estimate of 6.73 percent two weeks ago, the central bank in Ankara said on its website today. Inflation in 24 months was foreseen at 6.31 percent compared with a previous 6.26 percent. To contact the reporter on this story: Ali Berat Meric in Ankara at [email protected] To contact the editor responsible for this story: Steve Bryant at [email protected] |
Senate May Vote on Trade Pacts Oct. 12 as Daley Urges Passage.The U.S. Senate may vote on pending free-trade agreements as soon as Oct. 12, Majority Leader Harry Reid said after White House Chief of Staff William Daley urged lawmakers to finish work on the pacts next week. Passing the accords as well as Trade Adjustment Assistance for workers who lose their jobs to foreign competition is an “essential piece of the president’s jobs agenda,” Daley said last night in Washington. Reid, a Nevada Democrat, outlined his chamber’s planned voting schedule today in a speech on the Senate floor. President Barack Obama sent Congress legislation for the trade accords reached four years ago on Oct. 3 after House Speaker John Boehner, an Ohio Republican, said he would consider the worker assistance in tandem with the trade deals. Action by both chambers would send the accords to Obama on the eve of a state visit by South Korea’s President Lee Myung Bak. “We need to get all four elements of this package -- the three trade deals and TAA -- across the finish line next week,” Daley told representatives of companies including Ford Motor Co. (F) and Wal-Mart Stores Inc. (WMT) at a fund-raising dinner for the National Foreign Trade Council’s educational foundation. The Senate Finance Committee today scheduled an Oct. 11 hearing on the trade accords. House Majority Leader Eric Cantor , a Virginia Republican, said on Oct. 3 that his chamber also plans to vote next week. Plea Against Bickering Daley said he expects the worker-aid program, which has been opposed by some Republicans, to receive a House vote on Oct. 12 and that “we hope to see continuing bipartisan support for a good plan and that we do not see the sort of bickering and partisanship that seems to have taken over this town on so many issues.” The South Korea deal, the biggest since the North American Free Trade Agreement, would boost U.S. exports by as much as $10.9 billion in the first year in which it’s in full effect, according to the U.S. International Trade Commission. The accord with Colombia would increase exports by as much as $1.1 billion a year. The House Ways and Means Committee voted to advance the pacts yesterday. Obama spent two years after taking office seeking to broaden Democratic support for the trade accords. He negotiated new terms for auto tariffs in the South Korea agreement that won over the United Auto Workers union, a deal on exchanging tax information with Panama and labor-rights assurances from Colombia. Companies from Caterpillar Inc. (CAT) to General Electric Co. (GE) have lobbied for the agreements to increase market access. Job Gains, Losses The U.S. Chamber of Commerce says the trade agreements will prevent the loss of 380,000 jobs. The pacts will destroy 159,000 jobs by encouraging companies to send work overseas, according to the AFL-CIO, the largest U.S. labor federation. While Daley said the South Korea agreement will support 70,000 U.S. jobs and open markets to boost American competitiveness, he said businesses should push for Congress to approve the worker assistance to help people who lose jobs because of trade deals. Business groups such as the Chamber have backed the renewal of worker aid. “Those of us who believe trade is worth fighting for must fight equally hard for the program of TAA,” Daley said. “I hope we can continue to work together to break through this ridiculous gridlock in Washington .” To contact the reporter on this story: Eric Martin in Washington at [email protected] To contact the editor responsible for this story: Larry Liebert at [email protected] |
Malaysia, Indonesia Aim to Meet Next Week on Palm Export Tax Cut.Malaysian Plantation Industries and Commodities Minister Bernard Dompok said he hopes to hold talks next week with ministers from Indonesia , which cut export taxes on refined palm oil products. Malaysia , the world’s second-largest producer of the edible oil, is studying the impact of this, Dompok told reporters in Kuala Lumpur today. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at [email protected] To contact the editor responsible for this story: Barry Porter at [email protected] |
Ecuador Prices Jump Most Since 2009 on Food and School Costs.Consumer prices in Ecuador, which uses the U.S. dollar as its official currency, rose at their fastest pace in more than two years in September as food costs jumped, the National Statistics and Census Institute said. Prices climbed 5.39 percent from a year earlier, the steepest 12-month increase since May 2009, and rose 0.79 percent from August, the agency said today in a report on its website. Producer prices rose 0.14 percent month-over-month and gained 6.73 percent in the year. Ecuador’s economy, South America’s seventh-biggest, expanded 8.9 percent in the second quarter, its fastest pace since 2008, as windfall oil profits helped boost spending on labor-intensive public works projects and spurred consumer demand, central bank President Diego Borja said last week. Prices rose the fastest in the highland city of Ambato, jumping 7.48 percent in September from the previous year, while inflation reached 5.69 percent in the nation’s largest city, Guayaquil, the statistics agency said. Ecuador , the Organization of Petroleum Exporting Countries’ smallest member, subsidizes fuel and domestic use of natural gas. Food costs leaped 8.57 percent, led by potatoes, a staple in the Andean nation, which soared 22 percent from a year earlier, while eggs increased 10 percent, the report said. Education costs rose 5.76 percent in September as highland schools restarted classes after a summer recess. Ecuador’s Finance Ministry raised its inflation forecast in August to 4.13 percent from the earlier estimate of 3.69 percent, while the central bank said Sept. 29 that the economy will expand faster than its previous estimate of 5.24 percent. To contact the reporter on this story: Nathan Gill in New York at [email protected]. To contact the editor responsible for this story: Joshua Goodman at [email protected] . |
EU Proposes Coordinated Action to Capitalize Banks, Barroso Says.The European Commission has proposed coordinated action to recapitalize the region’s banks, President Jose Barroso said. “We are now proposing to the member states to have a coordinated action to recapitalize banks and so to get rid of toxic assets that they may have,” Barroso said today in a question-and-answer session broadcast on YouTube World View. Barroso said governments have provided “at least 500 billion euros directly to support the banks” since 2008. “If you count with the guarantees, it’s more than 1 trillion euros. And if you add all the measures taken to help the real economy, it’s more than 4 trillion euros, so it’s really a huge amount of money,” he said. Those funds come ultimately “from the taxpayers,” Barroso said, so “it’s only fair now to ask the banking sector to give a contribution back to society.” He said he will push for a global financial-transactions tax at the Group of 20 nations. Preventing business from going to other regions “is the reason to have it a global tax,” Barroso said. “That’s why at the G-20 we are going to push for having a global tax, but if there is no agreement to have it at a global level, at least someone has to start and why not start it here in Europe .” To contact the reporter on this story: Jones Hayden in Brussels at [email protected] To contact the editor responsible for this story: Craig Stirling at [email protected] |
Centro to Call for New Trust Vote Following Court Approval.Centro Properties Group (CNP) received court approval to call meetings of its creditors and shareholders to vote on the creation of a new A$3.4 billion ($3.3 billion) property trust. The Supreme Court of New South Wales in Sydney has ordered that the meetings to vote on combining its existing funds can be called, Centro Properties said in a filing to the Australian stock exchange today. It plans to hold the meetings around Nov. 22 and expects the new Centro Retail Australia fund to begin trading on the exchange on Dec. 14, according to the filing. Centro Properties announced its intention to combine all its funds, swap its Australian malls for debt and distribute A$100 million to smaller stakeholders when it agreed to sell its U.S. malls to Blackstone Group for about $9.4 billion in March. Following an agreement with most creditors to swap their debt for the majority of Centro Properties’ Australian assets in August, today’s court approval moves the company one step closer to the creation of the new trust. “Extracting any value out of this situation is a good outcome,” Chief Executive Officer Robert Tsenin said on a conference call with the media today. “This is where people will land and this is why I’ve some confidence we’ll get the overall proposal across the line.” The boards of Centro Properties’ funds and independent expert Grant Samuel & Associates Pty said on Oct. 5 that the proposed amalgamation is in the best interests of shareholders. Centro Properties shares rose 3 percent to 34 cents as of 2:33 p.m. in Sydney, while Centro Retail Trust slid 3.5 percent to 27.5 cents. New Trust Ownership Senior lenders, who rank above other creditors in the event of a default, will own 73.9 percent of the trust in exchange for the A$2.9 billion of debt coming due on Dec. 15, Centro Properties said. Shareholders of Centro Retail Trust will get 14.5 percent, and investors in the unlisted Direct Property Fund will own 11.6 percent, the group said today. Shareholders in Centro Properties will get 5.03 Australian cents for each security they own, for a total of almost A$49 million, the company said. Holders of hybrid securities will receive A$20 million and convertible bond holders A$21 million, it said. The rest will be set aside to pay other non-senior debt. ‘Remain Liable’ “If the proposal is not implemented, Centro Properties will remain liable to repay its senior debt but will have no way to fund the repayment,” independent expert Grant Samuel & Associates said. The group is also seeking to sell as many as 19 properties worth more than A$600 million owned by its syndicates, Centro Properties said. Centro Properties first announced a restructure in 2009 after a debt-fueled U.S. buying spree backfired when the global financial crisis caused property values to plummet and borrowing costs to soar, leaving the company unable to refinance its ballooning debt. The company has since returned to profitability, with Centro Properties reporting net income of A$2.7 billion in the year to June 30 and Centro Retail Trust posting a A$357 million profit. To contact the reporter on this story: Nichola Saminather in Sydney at [email protected] To contact the editor responsible for this story: Andreea Papuc at [email protected] |
Pakistan Party Rejoins Coalition to Strengthen House Majority.Pakistan ’s Muttahida Qaumi Movement , which quit Prime Minister Syed Yousuf Raza Gilani ’s cabinet in June, returned to the government yesterday, further strengthening the majority of the ruling Pakistan Peoples Party. “The alliance between the MQM and PPP has taken this decision in the best interests of the country and people,” MQM chief Altaf Hussain said in a statement issued from the party’s London office late last night. The MQM is the fourth-largest party in the country’s 342- member National Assembly with 25 members. The third-largest party, the Pakistan Muslim League (Quaid) led by Chaudhry Shujaat Hussain, also reaffirmed its support for the coalition after overcoming differences in a meeting with President Asif Ali Zardari yesterday, according to Chaudhry Shahbaz Goshi, a vice president of the party. The group had threatened to quit the government. The 125-member Peoples Party needs support from allies to overcome opposition from the rival Pakistan Muslim League-Nawaz , the second-largest party with 91 members, according to the country’s Election Commission. To contact the reporter on this story: Khurrum Anis in Karachi at [email protected] To contact the editor responsible for this story: Mark Williams at [email protected] |
Oil Volatility Drops as Futures Rise for Second Straight Day.Oil options volatility declined as the underlying futures gained for the second consecutive day after European Central Bank President Jean-Claude Trichet announced a bond-purchase program to stimulate economic growth. Implied volatility for at-the-money options expiring in November, a measure of expected price swings in futures and a gauge of options prices, was 45.6 percent at 12:36 p.m. in New York, down from 49.8 percent yesterday. Oil for November delivery gained $1.60, or 2 percent, to $81.28 a barrel at 1 p.m. on the New York Mercantile Exchange. Oil has dropped 11 percent this year. The most active options contract in electronic trading today was December $60 puts, with 2,562 lots changing hands. The options declined 18 cents to 42 cents a barrel. November $75 puts, the next-most-active contract, fell 60 cents to 66 cents on volume of 2,240. One contract covers 1,000 barrels of crude. The volume of puts outnumbered calls by about 57 percent to 43 percent. The exchange distributes real-time data for electronic trading and releases information on floor trading, where the bulk of options trading occurs, the next business day. March $75 puts were the most active options traded in the previous session, with 7,050 lots changing hands. They fell $1.76 to $7.06 a barrel. The next-most active options, March $60 puts, declined 94 cents to $2.56 a barrel on volume of 5,920. Open interest was highest for December $100 calls with 50,533 contracts. Next were December $50 puts with 49,119 and December $120 calls with 42,572. To contact the reporter on this story: Justin Doom in New York at [email protected] To contact the editor responsible for this story: Dan Stets at [email protected] |
Teva Put Its Profit Ahead of Propofol Patient Safety, Jury Told.Teva Pharmaceutical Industries Ltd. (TEVA) , the world’s biggest generic-drug maker, was accused by lawyers at a Nevada trial of putting profit ahead of the safety of colonoscopy patients who got the company’s Propofol anesthetic from reused vials. Teva, along with drug distributors Baxter International Inc. (BAX) and McKesson Corp., marketed Propofol in “jumbo-sized vials” knowing it would entice doctors to reuse the containers and increase the spread of blood-borne diseases, Robert Eglet , a lawyer for colonoscopy patients who developed hepatitis after getting the medicine, told a Las Vegas jury yesterday. “Responsible drug companies should not put profits above patient safety,” Eglet said in closing arguments in the Nevada state court trial of three patients’ lawsuits. “It’s undisputed that these larger vials provided the temptation and the opportunity” for reuse, he added. Teva faces almost 300 lawsuits stemming from a hepatitis C outbreak three years ago in southern Nevada , the Petach Tikva, Israel-based company said in a regulatory filing last month. Nevada health officials blamed the reuse of Propofol vials for infecting patients with the incurable liver disease. The trial of the first case against Teva and Baxter last year resulted in a verdict of more than $500 million against the drugmakers. Teva’s lawyer countered that improperly sanitized medical equipment, not reused Propofol containers, caused some Nevada colonoscopy patients to develop hepatitis. Because of the number of daily procedures being done by some clinics it was “often impossible to properly clean” medical equipment, Mark Tully, one of the drugmaker’s lawyers, told jurors yesterday in his closing argument at the trial, which started more than a month ago. “There were multiple failures to follow proper medical procedures,” he added. Criminal Indictment Probes by Nevada health officials and the federal Centers for Disease Control and Prevention blamed the reuse of Propofol vials for infecting patients with the incurable liver disease. Propofol is an intravenous agent used for sedation or anesthesia, according to Teva’s website. Last year, a state grand jury indicted Dr. Dipak Desai , who ran the Endoscopy Center of Southern Nevada at the time of the outbreak, on criminal charges. Many of the hepatitis-related cases were linked to that colonoscopy clinic. Desai also faces federal charges over the outbreak. McKesson, Baxter Teva manufactures Propofol and San Francisco-based McKesson Corp. (MCK) is its current U.S. distributor. Baxter, based in Deerfield, Illinois , sold the drug for Teva until 2009, according to court filings. Teva has agreed to cover all damage claims arising from the cases on behalf of the distributors, according to court filings. In the first Propofol case against Teva, a Las Vegas jury awarded Henry Chanin , a private-school principal, and his wife $5.1 million in compensatory damages and $500 million in punitive damages against Teva and Baxter. Chanin argued he developed Hepatitis C after getting tainted Propofol during a colonoscopy. Jurors ordered Teva to pay $356 million of the punitive damages award while assessing $144 million of the award to Baxter. Teva officials have asked the Nevada Supreme Court to throw out Chanin’s verdict Three other Las Vegas residents, Anne Arnold , Richard Sacks and Anthony Devito, contend Teva’s 50-milliliter Propofol containers aren’t designed as single-use vials and the drugmaker didn’t properly warn doctors about the dangers of “double dipping” into the anesthetic. Reusing Vials The company ceased making smaller Propofol vials because the larger containers were more profitable, lawyers for the three colonoscopy patients contend in court filings. Doctors and staff attempt to save money by reusing the vials and can pass along contaminated amounts of the drug, they argue. Eglet and Will Kemp , another Las Vegas lawyer representing the colonoscopy patients, indicated during jury selection in Arnold’s, Sacks’s and Devito’s case that they may seek more than $600 million in compensatory and punitive damages in the case. Teva currently faces another trial in the same courthouse over a suit from separate colonoscopy patient who developed Hepatitis C after receiving Propofol from a tainted vial. In yesterday’s arguments, Eglet said Teva’s 50-milliliter Propofol containers amounted to “dangerous vials of mass infection” that had “no legitimate purpose” at clinics offering colonoscopies. “If there’s more than one way to package a product, a responsible drug company should choose the safest one,” Eglet told jurors in his case yesterday. “That is the law.” Tully countered that federal regulators approved the sale of Propofol in larger containers and said Teva wasn’t responsible for the misuse of the vials by medical personnel. “Any size vial is safe if it’s used properly,” Philip Hymanson, a lawyer for Baxter and McKesson, said in his closing argument. “We’re never really going to know what happened in those clinics.” The case is Sacks v. Endoscopy Center of Southern Nevada LLC, 08A572315, District Court for Clark County , Nevada (Las Vegas). To contact the reporters on this story: Jef Feeley in Wilmington, Delaware, at [email protected] ; Liz Benston in Las Vegas at [email protected]. To contact the editor responsible for this story: Michael Hytha at [email protected] |
Wal-Mart Brings in Consultants to Help Keep Its Shelves Stocked.Wal-Mart Stores Inc. (WMT) , once a case study in moving and selling goods, is now turning to consultants for help with the most basic of retail tasks: Keeping its shelves stocked. The retailer has hired firms including Acosta Inc. in the U.S. and Retail Insight in the U.K. to walk the aisles and track whether hundreds of items are in stock. Products are missing as a plan to add thousands of items to stores this year crowds storage space and tighter labor budgets leave workers less time to stock shelves. “You cannot keep cutting labor hours and expect the shelves to get filled, especially when you have more products to be replenished,” Colin McGranahan , an analyst with Sanford C. Bernstein in New York, said in an interview. “Store-level execution is coming down. There are only a few ways to cut corners without unintended repercussions, and that’s what is happening at Wal-Mart.” Wal-Mart’s reputation as the most efficient and cheapest merchant has eroded amid nine straight quarters of declining U.S. same-store sales. Pressured by unemployment and rising fuel costs, Wal-Mart shoppers are making fewer trips and visiting other stores more often, according to a study from WSL Strategic Retail. David Tovar , a Wal-Mart spokesman, said yesterday in an interview that the company’s in-stock levels have continued to improve and now are at “historical highs.” He declined to disclose what those historical highs are. “We’re pleased with the progress we’ve made,” he said. Suppliers’ Support Still, one Wal-Mart supplier said in-stock levels are worse today than in the past. During the summer, less than 90 percent of items in a typical basket of goods were available for shoppers, said the supplier, who declined to be named because his discussions with Wal-Mart are private. Keeping shelves full is a focus for Wal-Mart, and the retailer is asking for support to keep stores stocked up, the supplier said. Wal-Mart always excelled at getting products to the right place at the right time. Co-founder Sam Walton revolutionized retail distribution, moving goods from factories to shipping centers to stores faster and cheaper than rivals, said Nelson Lichtenstein, a professor at The University of California , Santa Barbara and author of “The Retail Revolution: How Wal-Mart Created a Brave New World of Business.” Supply Chain The retailer’s supply chain practices are now studied by others, and Chief Executive Officer Mike Duke and his predecessor, Lee Scott, both rose through Wal-Mart’s logistics department. Today’s retail environment is different from the one Walton faced. In addition to Target Corp. (TGT) and Kroger Co. (KR) , Wal-Mart today is battling foes such as online merchant Amazon.com Inc. and Germany ’s Aldi deep-discount chain, which has more than 1,100 U.S. stores. Consumers said Aldi was the most affordable supermarket in a March survey by consulting firm Market Force Information. Amazon offers 80 times as many products as Walmart.com, at lower prices, according to Wells Fargo analyst Matt Nemer. Only half of Wal-Mart’s shoppers now say it has the lowest prices, the WSL survey of 1,500 consumers found. Wal-Mart’s response was a guarantee to match rivals’ prices to lure households making less than $70,000 a year, which account for two-thirds of Wal-Mart’s U.S. business while doing only about one-fifth of their shopping there. ‘Trusted Retailer’ “We’ve got to deliver on these principles that had made us a trusted retailer -- that we’ll save them money and have what they need,” Bill Simon , Wal-Mart's top U.S. executive, has told investors. The return of about 8,500 items to stores, which will continue throughout the year, has boosted Wal-Mart’s inventory more quickly than sales for five consecutive quarters. Simon told investors in June that the inventory increase was intentional and a result of returning the items to shelves and sourcing more products directly from Asian manufacturers. At an investor conference later that month, Simon said he was focused on improving in-stock levels. “The only thing that really matters to us is whether the product is on the shelf or not,” he said. Searching Storerooms Wal-Mart’s shelves are pockmarked with empty spaces because employees can’t find products in storerooms fast enough, said Vic Gallese, an independent retail consultant based in Fort Worth , Texas. While the world’s largest retailer has computer systems to manage its ordering and flow of goods, at the store level, “you’re trusting your inventory to a person, and that takes skill and hours of labor,” said Gallese, who works with retailers to improve in-stock levels. For example, a product like salsa could be missing from the shelf while there is a full case of it that has been misplaced in the back room due to a lack of space, Gallese said. “Once your backroom gets out of control with inventory, things can circle the drain in a hurry for you,” Gallese said. Out-of-stock items lead to lost sales and customers, according to a 1991 study of about 3,000 consumers in the Journal of Retailing. When faced with an unavailable item, 14 percent of respondents said they would go to another store rather than choose a different brand or size. “The original retailer may not only lose that consumer for the exact item they were out of that day, they may lose the consumer entirely,” Stanley E. Griffis, an associate professor of logistics at Michigan State University’s Broad School of Business, said in an interview. “Until someone invents the Replicator device from ‘ Star Trek ,’ there will always be out-of- stock experiences.” To contact the reporter on this story: Matthew Boyle in New York at [email protected] To contact the editor responsible for this story: Robin Ajello at [email protected] |
FedEx Chief Fred Smith Sees Slow-Growth Economy, Not Another Recession.FedEx Corp. (FDX) doesn’t see a recession or contraction, rather a slow-growth economy, Chief Executive Officer Fred Smith said. Although holiday season shipments probably won’t increase as much as in 2010, they will still rise, Smith told an audience of chief executives at a General Electric Co (GE) .-Ohio State University event for middle-market companies in Columbus, Ohio. FedEx, based in Memphis, Tennessee, delivers goods ranging from financial documents to pharmaceuticals, making it an economic bellwether. A tax reform is critical to restart the economy in the U.S., where regulation is hampering private investment, a driver of growth, Smith said. “Our tax policy , our trade policy, our energy policy, and our regulatory policy are almost optimally designed to impede growth,” said Smith, who was interviewed by GE CEO Jeffrey Immelt as part of the event. Smith called some of the regulations “well-intentioned regulations that are job killers, that impede investment and until we address those things it’s going to be very difficult to get back to a reasonable growth rate.” Smith said he favors a so-called territorial tax system, in which businesses are taxed only on domestically generated income. Smith would also tie an investment tax credit to any repatriation of overseas funds to help boost growth. “American business, including GE and FedEx, have enormous resources offshore, most of which were earned by making products for local markets,” Smith said. If money does return to the U.S. is taxed too high, investment will remain weak, he said. “It’s business investment that’s the horse that pulls the wagon,” Smith, 67, said. “So it’s no mystery why we’re not producing jobs. We simply have inadequate investment.” To contact the reporter on this story: Rachel Layne in Boston at [email protected] To contact the editor responsible for this story: Ed Dufner at [email protected] |
German Factory Orders Unexpectedly Fall.German factory orders unexpectedly fell for a second month in August as domestic demand waned. Orders, adjusted for seasonal swings and inflation, declined 1.4 percent from July, when they dropped 2.6 percent, the Economy Ministry in Berlin said in a statement today. Economists forecast no change from the previous month, according to the median of 36 estimates in a Bloomberg News survey. In the year, orders rose 3.9 percent when adjusted for work days. Concerns that Europe ’s debt crisis and slowing global growth could drag the economy back into recession may prompt companies to put off investment. European confidence in the economic outlook dropped to the lowest in almost two years last month. At the same time, German business sentiment fell less than forecast, suggesting Europe’s largest economy may be spared a slump. “There is the danger that the market nervousness about the debt situation will affect companies more strongly,” said Jens Kramer, an economist at NordLB in Hanover, Germany. “That doesn’t necessarily mean a recession. We shouldn’t talk one into existence.” While domestic factory orders fell 3.2 percent in August, the ministry said holidays affected demand and there was a below-average number of big-ticket sales. Orders from abroad rose 0.1 percent, with sales to other euro-area nations gaining 2.7 percent. Orders for investment goods declined 1.3 percent and orders for consumer goods dropped 5.6 percent. The drop in overall orders in July was revised from 2.8 percent. ‘One-Off Effects’ “Manufacturing demand has been influenced by one-off effects in recent months,” the ministry said. Demand in the three months through August compared with the previous three- month period showed a gain of 1.5 percent, it said. “Still, overall the orders dynamic has noticeably lost momentum.” Railroad equipment maker Vossloh AG (VOS) said on Sept. 29 that it reduced its sales forecast for 2011 for a second time due to lower orders from southern Europe and “weak” Chinese demand. At the same time, Daimler AG (DAI) , the world’s largest maker of heavy-duty vehicles, said demand for Mercedes-Benz trucks hasn’t shown signs of being damped by slowing economic growth. “In spite of the debt crisis, we have good reason to be optimistic,” Chief Executive Officer Dieter Zetsche said in a speech on Sept. 30. Mercedes-Benz truck plants will be working at full capacity through the end of this year and have “a good level” of orders for the first quarter, he said. Heightened Danger Euro-area services and manufacturing output shrank for the first time in more than two years in September. The euro-area economy may fail to gather strength in the current quarter, expanding 0.2 percent from the previous three months before cooling to 0.1 percent growth in the final quarter, the European Commission in Brussels forecast last month. Bundesbank President Jens Weidmann said on Sept. 26 there is a “heightened danger” that financial market turmoil caused by uncertainty over the debt crisis will begin to affect the real economy. European governments this week hinted that bondholders may be saddled with bigger losses on Greek debt, intensifying market jitters that a second aid package designed to quell the fiscal crisis might unravel. France and Belgium are considering a second bailout of Dexia SA (DEXB) after the crisis reduced its ability to obtain funding. While the Bundesbank’s current forecast is for the German economy to expand about 3 percent this year, it said last month that the outlook “has clouded more than previously expected.” “Growth in the second half of the year will be significantly weaker than in the first,” said Ralph Solveen , head of economic research at Commerzbank AG in Frankfurt. “We still think that Germany will be able to dodge a recession.” To contact the reporter on this story: Jeff Black in Frankfurt at [email protected] To contact the editor responsible for this story: Craig Stirling at [email protected] |
Taiwan Stocks: Hung Seng, Taiwan Glass, United Microelectronics.Shares of the following companies had unusual moves in Taiwan trading. Stock symbols are in parentheses and prices are as of the 1:30 p.m. close in Taipei. The Taiex Index rose 142.85 points, or 2 percent, to 7,132. Hung Sheng Construction Co. (2534 TT) gained 2.9 percent to NT$12.30, the biggest increase since Sept. 16. The construction company plans to buy back 20 million common shares, or 3.27 percent of its outstanding stock, the company said in a statement to the stock exchange yesterday. Taiwan Glass Industrial Corp. (1802) (1802 TT) advanced 1.3 percent to NT$35.90. The glassmaker and Teco Electric & Machinery Co. (1504 TT) plan to invest NT$300 million ($9.79 million) to form a venture, United Evening News reported yesterday, without saying where it got the information. Teco increased 3.2 percent to NT$15.95. United Microelectronics Corp. (2303) (2303 TT) gained 2.6 percent to NT$11.75, the highest close since Sept. 1. The world’s second-largest contract maker of chips bought back and canceled $30 million of zero-coupon convertible bonds due 2016 in the third quarter, the Hsinchu, Taiwan-based company said in an exchange filing. To contact the reporter on this story: Weiyi Lim in Singapore at [email protected] To contact the editor responsible for this story: Darren Boey at [email protected] |
Fluidra, IAG, Prosegur Seguridad: Iberian Equity Market Preview.The following companies may have unusual price changes in Spanish trading. Stock symbols are in parentheses and share prices are from the previous close. Spain ’s IBEX 35 Index (IBEX) rose 2.7 percent to 8,704.80. Portugal ’s PSI-20 Index (PSI20) rose 1.5 percent to 5,858.46. Fluidra SA (FDR) : The Spanish maker of swimming pools trades for the first time without the right to collect a gross dividend of 7.2 euro cents. The shares jumped 3.9 percent to 2.43 euros. International Consolidated Airlines Group SA (IAG SM): The airline announced plans to transfer planes to lower-cost unit in a bid to boost margins on short- and medium-haul flights. The shares rose 1 percent to 1.82 euros. Prosegur Compania de Seguridad SA (PSG SM): The security company said it would pay a second dividend of 21.29 euro cents per share on Oct. 17. The shares rose 2.5 percent to 32.34 euros. To contact the reporter on this story: Charles Penty in Madrid at [email protected] To contact the editor responsible for this story: Frank Connelly at [email protected] |
Bank of England Sees Severe Strains in Bank Funding Markets.The Bank of England said it saw severe strains in bank funding markets as it raised its bond- purchase program to 275 billion pounds. “The squeeze on households’ real incomes and the fiscal consolidation are likely to continue to weigh on domestic spending, while the strains in bank funding markets may also inhibit the availability of credit to consumers and businesses,” the bank said in a statement. “The deterioration in the outlook has made it more likely that inflation will undershoot the 2 percent target in the medium term,” the statement said. To contact the reporter on this story: Jennifer Ryan in London at [email protected] To contact the editor responsible for this story: Scott Hamilton at [email protected] |
FamilyMart Announces Planned FY Group Dividend of 80.00 Yen.FamilyMart (8028) announced full-year group dividend estimates for the period to Feb. 29. Figures are in yen. ================================================================================ Forecast Previous Dividend ================================================================================ Full-Year Dividend 80.00 72.00 1st-Half Dividend N/A 40.00 2nd-Half Dividend 40.00 36.00 ================================================================================ To contact the editor responsible for this story: Teo Chian Wei at +81-3-3201-3623 or [email protected] |
Technology Executives Comment on Steve Jobs’s Death (Voices).Executives and politicians comment on the death of Steve Jobs , the co-founder and former chief executive officer of Apple Inc. (AAPL) : Bill Gates, chairman and founder of Microsoft Corp. “I’m truly saddened to learn of Steve Jobs’s death. Melinda and I extend our sincere condolences to his family and friends, and to everyone Steve has touched through his work. “Steve and I first met nearly 30 years ago, and have been colleagues, competitors and friends over the course of more than half our lives. “The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come. “For those of us lucky enough to get to work with him, it’s been an insanely great honor. I will miss Steve immensely.” U.S. President Barack Obama. “Steve was among the greatest of American innovators -- brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it. “By building one of the planet’s most successful companies from his garage, he exemplified the spirit of American ingenuity. By making computers personal and putting the Internet in our pockets, he made the information revolution not only accessible, but intuitive and fun. And by turning his talents to storytelling, he has brought joy to millions of children and grownups alike. Steve was fond of saying that he lived every day like it was his last. Because he did, he transformed our lives, redefined entire industries, and achieved one of the rarest feats in human history: he changed the way each of us sees the world. “The world has lost a visionary. And there may be no greater tribute to Steve’s success than the fact that much of the world learned of his passing on a device he invented. Michelle and I send our thoughts and prayers to Steve’s wife Laurene, his family, and all those who loved him.” Steve Wozniak, co-founder of Apple. “It felt a lot like you just heard that John Lennon got shot, or JFK, or Martin Luther King. “He was one of those cool guys. He knew technology. He understood it. We talked about the philosophies of the day --the counterculture was strong, the hippy movement, words in songs -- and went to concerts together. It was a strong friendship. “I think most people are going to miss the great products. That’s why we are stunned so much. It’s going to be hard to sleep tonight.” Mark Zuckerberg, founder and chief executive officer of Facebook Inc. “Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you.” Jim Snabe and Bill McDermott , co-CEOs of SAP AG. “Our world has lost a visionary, a creator, and a good person. Steve Jobs always challenged assumptions, went for the impossible and pursued perfection. He set the standard for innovation: breakthrough ideas realized at nearly unlimited scale. His light will shine on and influence generations to come.” Hans Vestberg, CEO of Ericsson AB. “Our industry has lost a great visionary and inspirer. With his innovative thinking Jobs was part of creating the massive growth in smartphone usage we are seeing today.” Martin Sorrell, CEO of WPP Plc. “Steve Jobs was a unique and brilliantly successful entrepreneur and manager -- a very rare combination and an inspiration to all of us. The most outstanding entrepreneur and manager of his generation. He was remarkable also in being able to bounce back from adversity -- the true test of a business genius. He was also an instinctive marketeer with an intuitive understanding of what the customer wants, of design, of product and of marketing. By virtue of being unique, he is by definition irreplaceable.” Neelie Kroes, the European Union’s commissioner for digital affairs. “A visionary who changed the way we live and work.” John Chambers, CEO of Cisco Systems Inc. (CSCO) “The world lost a true visionary and great man today. Steve Jobs did more than simply shape our concepts of technology and invention, he helped define our understanding of how great innovation and design can bring people closer together. “I, and everyone at Cisco, are deeply saddened by Steve’s loss. Our deepest sympathies go out to his colleagues and family. We’ll miss you, Steve, but your legacy will continue forever.” Meg Whitman, CEO of Hewlett-Packard Co. (HPQ) “Steve Jobs was an iconic entrepreneur and businessman whose impact on technology was felt beyond Silicon Valley. He will be remembered for the innovation he brought to market and the inspiration he brought to the world.” Robert Iger, CEO of Walt Disney Co. (DIS) “Steve Jobs was a great friend as well as a trusted adviser. His legacy will extend far beyond the products he created or the businesses he built. “It will be the millions of people he inspired, the lives he changed, and the culture he defined. Steve was such an ‘original,’ with a thoroughly creative, imaginative mind that defined an era. Despite all he accomplished, it feels like he was just getting started. “With his passing the world has lost a rare original, Disney has lost a member of our family, and I have lost a great friend. Our thoughts and prayers are with his wife Laurene and his children during this difficult time.” Larry Page, CEO of Google Inc. (GOOG) “I am very, very sad to hear the news about Steve. He was a great man with incredible achievements and amazing brilliance. “He always seemed to be able to say in very few words what you actually should have been thinking before you thought it. “His focus on the user experience above all else has always been an inspiration to me. He was very kind to reach out to me as I became CEO of Google and spend time offering his advice and knowledge even though he was not at all well. “My thoughts and Google’s are with his family and the whole Apple family.” Sergey Brin, co-founder of Google. “From the earliest days of Google, whenever Larry and I sought inspiration for vision and leadership, we needed to look no farther than Cupertino. “Steve, your passion for excellence is felt by anyone who has ever touched an Apple product (including the Macbook I am writing this on right now). And I have witnessed it in person the few times we have met. “On behalf of all of us at Google and more broadly in technology, you will be missed very much. My condolences to family, friends, and colleagues at Apple.” Marc Benioff, CEO of Salesforce.com Inc. (CRM) “Steve Jobs was the greatest leader our industry has ever known. We are all blessed by his life. My thoughts and prayers are with his family. “I am really sad. It’s such a terrible loss for the whole world. I will never forget him. He did so much for me.” Guy Kawasaki, who served as an “evangelist” for Apple’s Macintosh computer when it was introduced in 1984 and is a founder of Garage Technology Ventures in Palo Alto, California. “No CEO ever has done more for his customers, shareholders and employees than Steve Jobs.” Michael Dell, CEO of Dell Inc. (DELL) “Today the world lost a visionary leader, the technology industry lost an iconic legend and I lost a friend and fellow founder. “The legacy of Steve Jobs will be remembered for generations to come. My thoughts and prayers go out to his family and to the Apple team.” Scott McGregor, CEO of Broadcom Corp. (BRCM) “Steve’s passion for innovation and creativity will carry on for decades to come. “His legacy is enormous, touching millions of people around the world. Our entire industry and economy is better for his presence and incredible contributions. “On behalf of Broadcom, we send our deepest condolences to Steve’s family and to Apple employees.” Jay Elliot, author of “The Steve Jobs Way” who worked at Apple with Jobs for six years. “It’s very sad. I can’t believe it. I’ve been preparing for it as we’ve all known it’s coming. But he was a unique person who we’ll never see or meet again. “He changed my life. He lived in a direct way, the way he wanted. Some people criticize him but I worked for him for many years and he was a very moral individual.” Choi Gee Sung, CEO of Samsung Electronics Co. “Samsung Electronics is saddened to hear of Chairman Steve Jobs’s passing and would like to extend our deepest condolences. “Chairman Steve Jobs introduced numerous revolutionary changes to the information technology industry and was a great entrepreneur. “His innovative spirit and remarkable accomplishments will forever be remembered by people around the world. “We would like to again express our sincerest condolences to Mr. Jobs’s family and his colleagues.” Maria Shriver, former first lady of California. “I’m going to turn off my Apple computer, iPhone and iPad tonight at 8 p.m. and honor Steve with a moment of digital silence. Will you join me?” Jim Allchin, former chief architect of Microsoft Corp. (MSFT) ’s Windows operating system. “In my view Steve’s contributions to society grew over time and, although he was always innovative, his best work came during the last 10 years. Steve’s ability to understand user- centric computing was the best I have ever seen. He was a truly remarkable man.” California Governor Jerry Brown. “Steve Jobs was a great California innovator who demonstrated what a totally independent and creative mind can accomplish. “Few people have made such a powerful and elegant imprint on our lives. Anne and I wish to express our deepest sympathy to Steve’s wife, Laurene, and their entire family.” Jeff Bewkes , Time Warner Inc. (TWX) CEO. “The entire Time Warner family mourns the loss of Steve Jobs. The world is a better place because of Steve, and the stories our company tells have been made richer by the products he created. “He was a dynamic and fearless competitor, collaborator, and friend. In a society that has seen incredible technological innovation during our lifetimes, Steve may be the one true icon whose legacy will be remembered for a thousand years.” Rupert Murdoch, chairman and founder of News Corp. “Today, we lost one of the most influential thinkers, creators and entrepreneurs of all time. “Steve Jobs was simply the greatest CEO of his generation. While I am deeply saddened by his passing, I’m reminded of the stunning impact he had in revolutionizing the way people consume media and entertainment. “My heart goes out to his family and to everyone who had the opportunity to work beside him in bringing his many visions to life.” Mike Bloomberg, mayor of New York City and founder of Bloomberg LP, owner of Bloomberg News. “Tonight, America lost a genius who will be remembered with Edison and Einstein, and whose ideas will shape the world for generations to come. “Again and again over the last four decades, Steve Jobs saw the future and brought it to life long before most people could even see the horizon. And Steve’s passionate belief in the power of technology to transform the way we live brought us more than smartphones and iPads: It brought knowledge and power that is reshaping the face of civilization. “In New York City’s government, everyone from street construction inspectors to NYPD detectives have harnessed Apple’s products to do their jobs more efficiently and intuitively. “Tonight our city -- a city that has always had such respect and admiration for creative genius -- joins with people around the planet in remembering a great man and keeping Laurene and the rest of the Jobs family in our thoughts and prayers.” Yang Yuanqing, CEO of Lenovo Group Ltd. (992) “Today the world lost one of its greatest innovators and visionaries with the passing of Steve Jobs. His achievements are unmatched in our time. “Steve led this industry like a beacon for the past decade. As a competitor, he helped ensure all of us pushed even harder, and I am confident his legacy will continue to energize the industry for many years to come. “We admired his spirit, his creativity and his passion. He not only changed the technology industry, he changed the world and made it better. “While we will all feel this enormous loss, I am confident that this industry will take to heart the lessons Steve taught us about innovation.” Howard Stringer, chairman of Sony Corp. (6758) “The digital age has lost its leading light, but Steve’s innovations and creativity will inspire dreamers and thinkers for generations.” Morris Chang, chairman of Taiwan Semiconductor Manufacturing Co. “We have lost a true visionary. Steve Jobs changed the face of computing and defined the shape of mobile computing devices. He had created an unparalleled example of what innovation can do. It saddens me to think of how much more he had to offer the world. He will be missed deeply.” George Lucas, chairman of Lucasfilm Ltd. “The magic of Steve was that while others simply accepted the status quo, he saw the true potential in everything he touched and never compromised on that vision. “He leaves behind an incredible family and a legacy that will continue to speak to people for years to come.” John Lasseter, chief creative officer and president of Walt Disney and Pixar Animation Studios. “Steve Jobs was an extraordinary visionary, our very dear friend and the guiding light of the Pixar family. “He saw the potential of what Pixar could be before the rest of us, and beyond what anyone ever imagined. Steve took a chance on us and believed in our crazy dream of making computer animated films; the one thing he always said was to simply ‘make it great.’ “He is why Pixar turned out the way we did and his strength, integrity and love of life has made us all better people. He will forever be a part of Pixar’s DNA. Our hearts go out to his wife Laurene and their children during this incredibly difficult time.” Mike Lazaridis and Jim Balsillie, co-CEOs of Research In Motion Ltd. “Steve Jobs was a great visionary and a respected competitor. We extend our deepest condolences to his family and to all of the employees of Apple.” Paul Otellini, president and CEO of Intel Corp. “True genius is measured by the ability to touch every person on the planet. Steve did that, not just once, but many, many times over his amazing life. We at Intel were privileged to have known him and worked with him as he brought his creations to life. Our hearts go out to his family and to his many friends and co-creators throughout the world.” Stephen Elop, CEO of Nokia Oyj. (NOK1V) “The world lost a true visionary today. Steve’s passion for simplicity and elegance leaves us all a legacy that will endure for generations. Today, my thoughts, and those of everyone at Nokia, are with the friends and family that he leaves behind.” John Sculley, a former Apple CEO. “Steve Jobs was intensely passionate at making an important difference in the lives of his fellow humans while he was on this planet. He never was into money or measured his life through owning stuff. “The world knows Steve Jobs as the brilliant genius who transformed technology into magic. A part of Steve still lives within all of us through his beautifully designed products and his no-compromises media experiences. Steve Jobs captured our imagination with his creativity. His legacy is far more than being the greatest CEO ever. A world leader is dead, but the lessons his leadership taught us live on.” Paul Jacobs, CEO of Qualcomm Inc. “We have all lost someone special today. “I had a number of opportunities to meet and talk with Steve Jobs over the years. He was always a bold visionary and a risk taker, and a tough businessman as well. “The products and technologies he and his team at Apple worked on will continue to influence the wireless industry and people’s everyday lives for many years to come. I offer my condolences to his family, friends and the employees of Apple.” Terry Gou, chairman of Foxconn Technology Group. “The world has lost a true hero and I have lost a friend whose dedication to his company, his customers, and our industry is reflected in the fact that he continued to work while dealing with such a devastating illness. “True business leaders grow their companies by committing their innovation, creativity, and passion and, while Steve exemplified all of these qualities, he also committed his heart to building a company and products that enriched people’s lives. “Steve’s spirit will live on forever with those who, like me, had the honor to know and work with him. However, everyone has been touched by his genius and, because of this, he has left the world a better place. He will be missed, but never forgotten.” Masayoshi Son, CEO of Softbank Corp. “I am deeply saddened to learn of the passing of Steve Jobs. Steve was truly a genius of our time, a man with a rare ability to fuse art and technology. “Centuries from now, he will be remembered alongside Leonardo da Vinci. His achievements will continue to shine forever.” Randall Stephenson, CEO of AT&T Inc. “We are saddened by the passing of Steve Jobs. Steve was an iconic inventor, visionary, and entrepreneur, and we had the privilege to know him as partner and friend. All of us at AT&T offer our thoughts and prayers to Steve’s wife, family, and his Apple family.” Lowell McAdam, CEO of Verizon Communications Inc. “Steve Jobs devoted his ceaseless energy and creative genius to technology innovation that changed the world time and time again. Our industry and all of our customers benefited tremendously from his pursuit of excellence. We will miss him. Our heartfelt condolences go to his family and his employees.” Rene Obermann, CEO of Deutsche Telekom AG. “Steve Jobs was the greatest innovator, best marketing man and most determined entrepreneur I have known in my entire life. His approach and way of working will characterize Apple for a long time to come.” Jeffrey Immelt, CEO of General Electric Co. “He did something that I think is very hard: be both a dreamer and a doer.” Tony Blair, the former U.K. prime minister. “Steve was an extraordinary and creative human being, an inspiration and an innovator who believed that by the power of ideas the world could be transformed. As much as anyone in any walk of life in the early 21st century he changed people’s lives simply by imagination and determination. His memory will serve as a symbol of what the human mind can achieve.” Ratan Tata, Tata Group Chairman. “Steve Jobs has been one of the greatest icons of the modern era. His untimely death is a huge loss to us all. “His creativity, innovativeness and unbelievable attention to detail in every single area, gave the world the early personal computer, the iPod, the iPhone and the iPad which have perhaps brought about the greatest change in the way people wirelessly listen to music, view visual images, exchange data and communicate. “He has changed the way of life of many. Apple’s products, under his leadership, have had a profound impact on mankind, unequaled by any other company in the information and technology space. “The world has lost a great business leader and a great visionary. He will be deeply mourned and greatly missed.” To contact the editor responsible for this story: Tom Giles at [email protected] |
Trichet Says Not Appropriate for ECB to Leverage the EFSF.European Central Bank President Jean- Claude Trichet said it’s not appropriate for the ECB to leverage Europe ’s rescue fund. “The governments have the capacity to leverage,” the European Financial Stability Facility, Trichet said at a press conference in Berlin today. To contact the reporter on this story: Jana Randow in Frankfurt at [email protected] To contact the editor responsible for this story: Gabi Thesing at [email protected] |
Geithner Says ‘Absolutely’ No Chance of Another Lehman in U.S..U.S. Treasury Secretary Timothy F. Geithner said today that there is “absolutely” no chance of another U.S. financial institution collapsing like Lehman Brothers Holdings Inc. in 2008. Geithner, testifying before the Senate Banking Committee in Washington, was asked about Morgan Stanley (MS) but did not mention that company by name. “The direct exposure of the U.S. financial system to the countries under the most pressure in Europe is very modest. Europe as a whole, though, is a big deal,” Geithner said. “Our firms, and this is true across the largest institutions in the United States, again are in a much stronger position if you look at their capital levels, levels of leverage, how they’re funded.” To contact the editor responsible for this story: Kevin Costelloe at [email protected] |
F&C Asset Management CEO Alain Grisay Will Step Down Next May.Alain Grisay, chief executive officer of F&C Asset Management Plc (FCAM) , will step down as CEO in May and retire at the end of the third quarter, the company said in a statement today. Edward Bramson has been appointed executive chairman with immediate effect. To contact the editor responsible for this story: Peter Woodifield at [email protected] |
U.K. Services Rise, Led by Business Services.Britain’s services companies grew 0.2 percent in July, led by business services and finance. The increase followed a revised 0.3 percent decline in June, the Office for National Statistics said in London today. On the year, services, which account for about three quarters of the economy, grew 1.3 percent. The Bank of England’s Monetary Policy Committee meets today to decide whether to resume buying bonds as the government’s budget squeeze and Europe ’s debt crisis hurt growth prospects. While data yesterday showed economic growth slowed more than initially estimated in the second quarter, a separate report said services growth unexpectedly strengthened in September. “In the monthly indicators since the last MPC meeting, there have been more upward than downward surprises, so that would argue for holding back” on more stimulus, Alan Clarke , an economist at Scotia Capital in London, said before the release. “But we all know it’s coming, so why wait? It’s a very close call, but I think November is a slightly better bet.” In the three months through July, services rose 0.9 percent from the previous three months, the most since November 2007. From a year earlier, the three-month index was up 1.3 percent. On the month, business services and finance grew 0.4 percent, while government services increased 0.3 percent, the statistics office said. Within business services, growth was led by legal and consultancy work. The index for distribution, hotels and restaurant slipped 0.1 percent. In a separate release today, the statistics office said labor productivity was unchanged in the second quarter from the previous three months and was down 0.2 percent on the year. Output per hour increased 1.3 percent on the quarter, while unit labor costs, or the amount spent on wages and salaries to produce each unit of output, rose 0.3 percent. In manufacturing, output per hour increased 3.7 percent from the first quarter, the most since at least 1997. The increase was partly due to people taking leave around Easter and the extra public holiday for the Royal Wedding in April. Services output per hour rose 1.1 percent. To contact the reporter on this story: Scott Hamilton in London at [email protected] To contact the editor responsible for this story: Craig Stirling at [email protected] |
Keynes and Hayek, the Great Debate (Part 1): Nicholas Wapshott.The greatest debate in the history of economics began with a simple request for a book. In the early weeks of 1927, Friedrich Hayek, a young Viennese economist, wrote to John Maynard Keynes at King’s College, Cambridge, in England , asking for an economic textbook written 50 years before: Francis Ysidro Edgeworth’s exotically titled “Mathematical Psychics.” Keynes replied with a single line on a plain postcard: “I am sorry to say that my stock of ’Mathematical Psychics’ is exhausted.” Why did Hayek, an unknown economist with little experience, approach, of all people, Keynes, perhaps the best-known economist in the world? For Keynes, Hayek’s request was just another item in his bulging postbag. Cambridge’s economics prodigy retained no record of Hayek’s request, even though he was so conscious of the contribution he was making to posterity through his daring approach to the study of political economy that he had taken to hoarding each scribbled note and every last letter. His posthumously published papers, even when edited, fill dozens of volumes. Hayek, meanwhile, seemed fully aware of the significance of his request. He treasured Keynes’s bald reply and preserved it for the next 65 years as a personal memento and professional trophy. The postcard sits today in the Hayek archive at the Hoover Institution on the Stanford University campus in California -- tangible evidence that Hayek had instigated the first contact in what would become an intense duel over the role of government in society and the fate of the world economy. Scarce Resources Edgeworth interested Hayek because one of the subjects he explored at length was a topic that would come to engage both Keynes and Hayek: how scarce resources can best maximize the “capacity for pleasure.” The forbiddingly titled “Mathematical Psychics: An Essay on the Application of Mathematics to the Moral Sciences,” published in 1881, was Edgeworth’s best-known work. It anticipated a great number of the debates that would entangle economists over the next century, including notions of “perfect competition,” “game theory” and, most important for the impending battle between Keynes and Hayek, the belief that an economy will reach a state of “equilibrium” with every able- bodied adult fully employed. Edgeworth was also an early expounder of theories about money and the monetary system, which by 1927 both Keynes and Hayek had already addressed at length. Slender Pretext There was a pretext, albeit slender, that might have prompted Hayek to reach out to Keynes: Keynes had succeeded Edgeworth as editor of the Economic Journal in 1911. But why Hayek should expect Keynes to possess what Keynes jokingly refers to as “my stock of ‘Mathematical Psychics,’” as if he maintained a secret hoard of Edgeworth’s forbidden works, is hard to fathom. Though Edgeworth was little remembered even among U.K. economists, “Mathematical Psychics” was commonly available. While a profound division existed between the British school of economics, centered around the teachings of Keynes’s mentor, Alfred Marshall at Cambridge and the continental variety, which focused on the theories of capital investment (the money invested in a business) expounded in Vienna by Hayek’s mentor, Ludwig von Mises, there was a good deal of contact, and a fair degree of misunderstanding, between the two camps. Mercantilist Tradition Marshall’s economics was based on a common-sense understanding of the subject and how business worked in practice, emanating from the mercantilist tradition that had made Britain the most successful commercial nation in history. The notions of the “Austrian School” were more theoretical and mechanistic, deriving from an intellectual, rather than a practical, understanding of how business might work. The Austrians mostly read English and were conversant with, if not persuaded by, the English tradition; the English, on the whole, couldn’t read German and largely ignored the works of Austrian and German theorists. But such was the bond between academics that national borders meant little. The trading of books and journals continued throughout the horrors of World War I, even when scholars found themselves on opposite sides of trench-dug borders. The philosopher Ludwig Wittgenstein, a friend of Keynes’s at Cambridge and a distant cousin of Hayek’s, wrote to Keynes while serving in the Austrian army on the Italian front, asking for a new volume by the Cambridge philosopher Bertrand Russell: “Could you possibly send it to me and let me pay for it after the war?” Keynes duly obliged. Famous Worldwide Even if Hayek couldn’t find a copy of “Mathematical Psychics” in the University of Vienna’s extensive library, it was a stretch to imagine that his next port of call should be the world-renowned Keynes. Keynes was not merely a fellow of King’s College, Cambridge, teaching economics to undergraduates. At age 42, he was famous worldwide because of his role as a British Treasury negotiator at the Paris Peace Conference, the precursor to the Treaty of Versailles, which brought the cataclysm of World War I to an end. By revealing to the wider public the intense xenophobia and nationalistic spite that had guided the Paris deliberations, Keynes had become a celebrated figure not only in Britain but also in Europe generally, particularly in the defeated nations of Austria and Germany. Precocious Understanding Keynes’s precocious understanding of economics and public finance was so considerable that when Britain declared war on Germany in 1914, he was recruited to negotiate an enormous loan from American creditors. The borrowing was vast not only because it funded Britain’s worldwide war effort, in defense of an empire that covered half the globe, but also because American bankers didn’t trust the French and Italians to meet their repayments, leaving Britain to indemnify its allies. Keynes’s efforts were so ingenious, and his charm so effective in cutting through bureaucracy, that when the war ended, Keynes joined the team to advise on how to make the Germans pay for causing so much death and devastation. The war was the most destructive in history up to that time. At its root, the struggle between the Central Powers of Germany , Austria-Hungary, Turkey and Bulgaria versus the Allies, made up of the U.K., France , Russia and, eventually, the U.S., was over territory and world trade. The conflict marked the end of a chivalrous age and the dawn of the modern era. Cavalry and bayonet charges slowly gave way to tank battles, chemical- weapons attacks and aerial bombardment. Four Terrible Years After four terrible years, the Germans were starved into submission, and by the armistice in 1918 almost 10 million in uniform on both sides lay dead, a further 8 million were “missing,” more than 21 million had been wounded, and about 7 million civilians had perished. A generation of young Europeans had been slaughtered or maimed. As Hayek recalled, Keynes was “something of a hero to us Central Europeans” owing to his courageous condemnation of British, French and American leaders for levying crippling reparations on those in the remnants of the defeated alliance. His damning account of the Paris talks, “The Economic Consequences of the Peace,” was published just months after the Versailles treaty was signed, and became an instant worldwide sensation. Keynes’s predictions that the burdensome reparations would lead to political instability and extremist politics, and that they might spark another world war, would turn out to be chillingly prescient. (Nicholas Wapshott, a former senior editor at the Times of London and the New York Sun, is the author of “ Ronald Reagan and Margaret Thatcher : A Political Marriage.” This is the first in a four-part series excerpted from his new book, “Keynes Hayek: The Clash That Defined Modern Economics,” to be published Oct. 11 by W.W. Norton.) To contact the writer of this article: Nicholas Wapshott at [email protected] To contact the editor responsible for this article: Mark Whitehouse at [email protected] |
Brazil Ministry Says Food Price Unlikely to Fall During Harvest.Brazil ’s Agriculture Ministry doesn’t expect food prices to fall as much during the 2012 harvest as in previous years, said Deputy Minister Jose Carlos Vaz. The smaller price drop during the harvest won’t help ease inflation as much as in the past, Vaz said today at a press conference in Brasilia. Usually, rising food supplies during the harvest drive down costs. To contact the reporter on this story: Mario Sergio Lima in Brasilia Newsroom at [email protected] To contact the editor responsible for this story: Jessica Brice at [email protected] |