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Lynas Says Rare Earths Demand to Grow at 9% a Year | By Elisabeth Behrmann and Gopal Ratnam | 2010-10-25T21:32:56Z | http://www.bloomberg.com/news/2010-10-25/lynas-corp-says-global-demand-for-rare-earths-to-expand-at-9-annually.html | 10 | 25 | 8145ea23a743cfe3b38b8515660e8d439594a582 | Global supplies of rare-earth
elements will fall short of demand, which will grow by an
average of 9 percent annually to the year 2014, Lynas Corp.
said yesterday. Total demand for the group of elements, used in products
such as industrial magnets, flat-screen TVs, and military
weapons systems, is likely to grow to 190,100 metric tons in
2014, from an expected 136,100 tons this year, Lynas, a Sydney-
based, rare-earths developer, said in a presentation. Global supply will grow only to 170,000 tons by 2014,
according to Lynas’s estimates. The projected supply shortfall
may lead to higher prices because users need the elements, which
can’t be easily replaced, Eric Noyrez, chief operating officer
of Lynas said in an interview at the Critical and Rare Metals
Summit III in Washington yesterday. “You’re not going to stop using rare-earth materials
because the price is going up,” he said. Prices for the metals have increased since China, producer
of more than 90 percent of the world’s rare earths, reduced its
second-half export quota for the minerals by 72 percent in July.
It is now further restricting exports, according to industry
participants. The price of lanthanum oxide, used in hybrid-car batteries
among other applications, has risen to $50 a kilogram, an almost
sevenfold increase compared with the second quarter this year,
according to Lynas’s website. U.S. Defense Needs The U.S. Government Accountability Office, the
investigative arm of Congress, warned in April of
“vulnerabilities” for the military because of the lack of
domestic suppliers of rare-earth materials used in weapons
systems, such as missiles and radar. The Pentagon is studying
how to secure future supplies of materials, and its report is
due to Congress this month. Noyrez said Lynas’s A$550 million ($545 million) Mount Weld
rare-earths project in Australia, due to go into operation next
year, will be able to fully meet the U.S. Defense Department’s
needs. “The quantities are extremely small,” he said of the
Pentagon’s requirements. Lynas estimates the military would need about 10 tons to 20
tons of rare-earth materials for its weapons systems, Noyrez
said.“Fixing that for them would not take too much time,” he
said. While the elements aren’t as rare in nature as the name
implies, they are difficult to find in profitable
concentrations, expensive for Western producers to extract and
often laced with radioactive elements. China has come to
dominate the market because it has been able to produce the
elements more cheaply and with fewer environmental restrictions
than its competitors. China’s recent toughening of environmental standards has
led to a closure of many producers, leading to a tightening of
supply as well as higher production costs, Lynas said. To contact the reporters on this story:
Elisabeth Behrmann in Sydney at
[email protected]
Gopal Ratnam in Washington at
[email protected] . To contact the editor responsible for this story:
Andrew Hobbs at [email protected] | 2010 | ynas-corp-says-global-demand-for-rare-earths-to-expand-at-9-annually |
Transurban Expects Fiscal 2011 Distribution at Least 26 Australian Cents | By Tim Smith | 2010-10-25T23:56:29Z | http://www.bloomberg.com/news/2010-10-25/transurban-expects-fiscal-2011-distribution-at-least-26-australian-cents.html | 10 | 25 | 200619887a83af787c5c091227f4758f8d287149 | Transurban Group expects to pay at
least 26 Australian cents of distributions in fiscal 2011,
according to a regulatory filing. To contact the reporter on this story:
Tim Smith in Sydney at
[email protected] To contact the editor responsible for this story:
Tim Smith at
[email protected] | 2010 | ransurban-expects-fiscal-2011-distribution-at-least-26-australian-cents |
Mortgage Stress in Australia May Increase as Rates Go Higher, Review Says | By Nichola Saminather | 2010-10-25T20:16:15Z | http://www.bloomberg.com/news/2010-10-25/mortgage-stress-in-australia-may-increase-as-rates-go-higher-review-says.html | 10 | 25 | 7c8c3396c1e1337264a3901ce4bab4d3d8041b24 | More than half of first-home buyers
in Sydney, Melbourne and Brisbane spend more than 30 percent of
their disposable income on housing costs, the level used to
define mortgage stress, the Australian Financial Review
reported, citing research from the National Centre for Social
and Economic Modelling. This is expected to increase further,
with interest payments as a proportion of household income for
all mortgages forecast to rise to a record 12 percent if the
Reserve Bank of Australia raises its benchmark rate to 6 percent
by the end of 2011, according to the report. To contact the reporter on this story:
Nichola Saminather in Sydney at
[email protected] To contact the editor responsible for this story:
Tim Smith at
[email protected] | 2010 | ortgage-stress-in-australia-may-increase-as-rates-go-higher-review-says |
Hermes Family Members Didn't Sell `Significant' Shares to LVMH | By Andrew Roberts | 2010-10-26T14:03:37Z | http://www.bloomberg.com/news/2010-10-25/hermes-founding-family-members-didn-t-sell-significant-shares-to-lvmh.html | 10 | 25 | 9717ca252d084d7383a554cda012bf39 | The founding family of Hermes
International SCA didn’t sell a block of shares in the French
maker of Birkin bags and silk scarves to LVMH Moet Hennessy
Louis Vuitton SA , according to an Hermes executive. LVMH, the world’s largest luxury-goods maker, increased its
stake in Paris-based Hermes to 17.1 percent, exercising options
it already held, LVMH said today in a statement. LVMH said Oct.
23 it owned 14.2 percent of the maker of Birkin bags and
derivative instruments for another 2.9 percent of Hermes, at a
total cost of 1.45 billion euros ($2 billion). LVMH didn’t say
how or from whom it bought the stake. “While some family members make small trades from time to
time, to our knowledge, no one from the family has sold a
significant amount of shares,” Patrick Albaladejo , Hermes vice
president of strategic development and image, said yesterday in
a phone interview. “Hermes didn’t know about it.” Hermes fell as much as 25.85 euros, or 13 percent, to 177
euros, the biggest intraday drop since at least 1993, and traded
at 179.15 euros as of 4:02 p.m. in Paris trading. The stock rose
15 percent yesterday. ‘Absolute Unity’ “Unsolicited” movements in the capital have led the
company to confirm the family’s “absolute unity and unanimous
wish” to retain control in the long term, Hermes said in a
statement yesterday. Hermes shares have climbed 80 percent since
the May 1 death of former Chief Executive Officer Jean-Louis Dumas amid speculation that members of the founding family may
be more willing to sell the 173-year-old company. About 73 percent of Hermes is held by the family, “which
is roughly what is needed for full control,” said Albaladejo.
Hermes is an SCA, or Societe en Commandite par Actions, a French
corporate structure allowing members of a family that owns a
business to keep control of decision-making even if they become
minority shareholders. The family believes “that independence is essential to the
future success of the company,” Albaladejo said. Hermes is
considering options on how to proceed, though “no specific
action has been taken,” he added. LVMH would have paid an average of about 80 euros a share
at the stated value for the entire stake, or about a 54 percent
discount to the Oct. 22 closing price of 176.20 euros, according
to Bloomberg calculations. That would indicate that the shares
were sold a long time ago, Albaladejo said. Hermes shares last
traded around 80 euros in March 2009 . LVMH, which is also based in Paris, said on Oct. 23 that it
doesn’t intend to make a tender offer, take control or seek
board representation at Hermes. LVMH said in a separate
statement yesterday that it met French rules regarding the
purchase and will file the appropriate notifications within the
time frame stipulated by the market regulator, the AMF. French
law requires shareholders to declare when they own 5 percent or
more of a company. “It will be up to the AMF to decide if rules have been
respected or there has been any irregularity,” Albaladejo said. To contact the reporters on this story:
Andrew Roberts in Paris at
[email protected] . To contact the editors responsible for this story:
Celeste Perri at [email protected] . | 2010 | ermes-founding-family-members-didn-t-sell-significant-shares-to-lv |
Nestle’s Ecuador Unit Plans $74 Million Debt Sale | By Nathan Gill | 2010-10-25T19:14:11Z | http://www.bloomberg.com/news/2010-10-25/nestle-ecuador-plans-74-million-bond-issue-for-investment-refinancing.html | 10 | 25 | 44fe42b3c38fb30d385300f80c45fa26b7e3c49c | The Ecuadorean unit of Nestle SA ,
the world’s largest food company, plans to sell $74 million of
debt to refinance loans and boost spending on technology in the
South American country, BankWatch Ratings del Ecuador SA said. Nestle Ecuador SA plans to sell the debt in four series
with maturities between three and seven years, according to
Carlos Ordonez, director of structured finance at BankWatch
Ratings, a local affiliate of London-based Fitch Ratings Ltd.
that was asked by the company to rate the bonds. The debt, with
interest rates between 7.25 percent and 8.75 percent, is
guaranteed by Nestle’s future sales in Ecuador, Ordonez said. Ecuadorean companies are taking advantage of an increase in
domestic liquidity to tap local markets for funding after a
February central bank decree forced banks to raise the amount of
money they keep at home, said Juan Lutyk, chief executive
officer of Guayaquil-based brokerage Intervalores Casa de
Valores SA. The measure has increased demand for corporate debt
and is lowering borrowing costs, he said. “There should be a lot of demand because there’s a lot of
liquidity in the banks,” Lutyk said today in a telephone
interview. “They are looking to buy all the private debt they
can.” Nestle Ecuador’s Chief Financial Officer Santiago Noboa
couldn’t comment on the sale, an assistant said today by
telephone. Nestle Ecuador plans to sell $20 million of 3-year bonds
with an interest rate of 7.25 percent, $15 million of 5-year
bonds at 7.75 percent, $35 million of 7-year bonds at 8.25
percent and $4 million of 7-year bonds at 8.75 percent, Ordonez
said. Local Rating BankWatch Ratings gave the debt a ‘AAA’ local rating,
citing the company’s “excellent capacity” to meet liquidity
goals and the “support” of Vevey, Switzerland-based Nestle,
according to Ordonez. Ecuadorean companies have sold $845 million of debt in the
year through September, with an average interest rate of between
7.5 percent and 8.5 percent, Mauricio Lopez, director of
research at the nation’s Superintendent of Companies, said today
in a telephone interview from Quito. The sale, which was
approved by government regulators on Oct. 19, would be the
nation’s biggest since 2006 for a company outside the banking
industry, Lopez said. To contact the reporter on this story:
Nathan Gill in Quito at
[email protected] To contact the editor responsible for this story:
David Papadopoulos at
[email protected] | 2010 | nestle-ecuador-plans-74-million-bond-issue-for-investment-refinancing |
Asian Stocks Gain as Singapore Bourse Bids for ASX, Commodity Prices Rise | By Kana Nishizawa | 2010-10-25T08:49:58Z | http://www.bloomberg.com/news/2010-10-25/asian-stocks-advance-on-kddi-s-stock-buyback-plan-higher-commodity-prices.html | 10 | 25 | 80ae5825217f46ce983cd71df9d9ae75 | Asian stocks rose, driving the MSCI
Asia Pacific Index to the highest level in more than a week,
after Singapore Exchange Ltd. made a takeover bid for ASX Ltd.
and commodity prices climbed. ASX , which runs Australia’s dominant stock exchange,
climbed 19 percent in Sydney. Jiangxi Copper Co. jumped 5.7
percent in Hong Kong on higher oil and metal prices. KDDI Corp.,
Japan’s second-largest mobile-phone operator, surged 7.3 percent
after saying it will spend as much as 100 billion yen ($1.2
billion) on its buyback. Kia Motors Corp. advanced 5.8 percent
in Seoul after Goldman Sachs Group Inc. increased its rating to
“buy” from “neutral.” The MSCI Asia Pacific Index rose 1.3 percent to 131.61 as
of 5:44 p.m. in Tokyo, set to close at its highest level since
Oct. 14. The gauge has climbed 14 percent from a one-month low
reached on Aug. 25. “Confidence in the global economy is strong, compared with
a couple months ago when the market was more concerned about
fiscal risks,” said Hidehiro Tomioka , who helps manage about
$1.4 billion in Tokyo at MFC Global Investment Management
(Japan) Ltd. “Merger activity is one trend that may continue,
supported by good cash flow. If these companies were worried
about a double-dip, they would be cautious in expanding their
businesses.” Australia’s S&P/ASX 200 Index climbed 1.3 percent and
Singapore’s Straits Times Index increased 0.5 percent. Hong
Kong’s Hang Seng Index gained 0.5 percent and South Korea’s
Kospi Index advanced 1 percent. China’s Shanghai Composite Index
jumped 2.6 percent. Japan’s Nikkei 225 Stock Average fell 0.3 percent as a
stronger yen threatened the value of export earnings. Cash, Stock Offer Futures on the U.S. Standard & Poor’s 500 Index gained 0.6
percent. ASX surged 19 percent to A$41.75, the biggest increase in
the MSCI Asia Pacific index. Singapore Exchange is offering cash
and stock worth about A$8.4 billion ($8.3 billion) to buy ASX,
according to a joint statement by the two exchanges. Singapore
Exchange sank 5.6 percent to S$9.01. The merger will combat rising competition, Singapore
Exchange’s Chief Executive Officer Magnus Bocker and ASX CEO
Robert Elstone said. It would be the first between two exchange
companies in the Asia-Pacific region and will create the world’s
fifth-largest exchange company by market value. “Regulators will want to ensure any merger upholds the
integrity of the Australian stock exchange and does not
compromise it in any shape or form,” said Tim Schroeders , who
helps manage about $1 billion at Pengana Capital Ltd. in
Melbourne. Hong Kong Exchanges Speculation of more mergers in the region drove publicly
traded bourses higher. Hong Kong Exchanges & Clearing Ltd. ,
operator of Asia’s third-biggest stock market, rose 4.9 percent
to HK$181.90. The company isn’t in any merger talks, spokesman
Henry Law said. Osaka Securities Exchange Co. advanced 2.5 percent to
437,000 yen. Bursa Malaysia Bhd., the nation’s stock exchange
manager, rose 5 percent to 8.65 ringgit in Kuala Lumpur. Gauges of raw-material producers and energy companies in
the MSCI Asia Pacific Index rose at least 1.7 percent, the most
of 10 industry groups, after commodity prices climbed. Copper
futures in New York jumped 2 percent in after-hours trading,
while crude oil increased 1.4 percent. Jiangxi Copper, China’s No. 1 producer of the metal,
increased 5.7 percent to HK$23.25 in Hong Kong, Cnooc Ltd.,
China’s largest offshore oil producer, gained 1.3 percent to
HK$16.14. Yanzhou Coal Rio Tinto Group , the world’s third-biggest miner, advanced
2.5 percent to A$84.10 in Sydney. Yanzhou Coal Mining Co. , the
listed unit of China’s fourth-biggest coal miner, soared 11
percent to HK$24.10 in Hong Kong after saying third-quarter
profit more than tripled from a year earlier. Hitachi High-Technologies Corp. , a trading company, jumped
3.8 percent to 1,536 yen in Tokyo after first-half net income
beat its projection by 57 percent. Australian banks gained on speculation they will report
increased profits in coming days. National Australia Bank Ltd.
increased 2.2 percent to A$25.01, while Westpac Banking Corp. ,
the country’s No. 2 bank, gained 2.3 percent to A$22.95.
Australia & New Zealand Banking Group Ltd. rose 2.1 percent to
A$23.90. Higher Profit National Australia Bank may have returned to profit, while
Westpac may post its best-ever second-half result, according to
analyst forecasts. Second-half net income at ANZ Banking may
have risen to a record, according to the median estimate of
analysts surveyed by Bloomberg. National Australia is due to release results on Oct. 27,
ANZ Bank on Oct. 28 and Westpac on Nov. 3. They accounted for
three of the five biggest contributors to the MSCI Asia Pacific
Index’s advance today. In Tokyo, KDDI jumped 7.3 percent to 436,000 yen. The
company said it will spend as much as 100 billion yen to buy
back up to 5.2 percent of its outstanding shares. Separately, it
said net income rose 10 percent in the three months ended Sept.
30. In Seoul, Kia Motors jumped 5.8 percent to 42,050 won after
Goldman Sachs raised its stock recommendation to “buy,” citing
“solid” volume growth. The MSCI Asia Pacific Index has surged 21 percent from this
year’s low on May 25 as growth in corporate profits eased
concern that Europe’s debt crisis and Chinese steps to curb
property-price inflation will hurt global growth. Stocks in the
gauge trade at an average 14.5 times estimated earnings ,
compared with about 14.1 times at the May low. Toyota, Canon Exporters in Japan dropped on concern a stronger yen will
hurt the value of overseas income that is repatriated. The yen
appreciated to 80.77 per dollar at the close of stock trading in
Tokyo, compared with 81.31 at the open today. Toyota Motor Corp. , which gets more than 70 percent of its
sales abroad, retreated 1.1 percent to 2,893 yen in Tokyo. Canon
Inc., the world’s biggest camera maker, lost 1.1 percent to
3,745 yen. Asian currencies strengthened against the dollar as Group
of 20 finance ministers and central bankers pledged to refrain
from “competitive devaluation” of currencies. “There are still worries about the yen gaining strength
further, even after the G-20,” said Tomochika Kitaoka, a senior
strategist in Tokyo at Mizuho Securities Co. “It’s hard for
investors to buy Japanese stocks.” To contact the reporter for this story:
Kana Nishizawa in Tokyo at
[email protected] . To contact the editor responsible for this story:
Darren Boey at
[email protected] . | 2010 | asian-stocks-advance-on-kddi-s-stock-buyback-plan-higher-commodity-prices |
Saudi Bourse Operator Tadawul Expects Shares Sales to Continue Next Year | By Zahra Hankir | 2010-10-25T11:58:32Z | http://www.bloomberg.com/news/2010-10-25/saudi-bourse-operator-tadawul-expects-shares-sales-to-continue-next-year.html | 10 | 25 | d307169803d8f9ce920b6190c212a72ffe37924d | The Saudi stock exchange operator
Tadawul expects initial public offerings to continue in 2011,
General Manager Abdullah al-Suweilmy said today. “Efforts will continue to diversify our market. I expect
our pipeline of IPOs to continue next year,” Suweilmy told
Bloomberg in an interview in Beirut. “Saudi Arabia has had
consistent pipeline of IPOs.” Suweilmy said the market regulator is working on foreign
ownership of shares on the bourse. “We are working with listed
companies to make disclosures available in English
so information will be available to international investors,”
he added. To contact the reporter on this story:
Zahra Hankir in Dubai at
[email protected] To contact the editor responsible for this story:
Inal Ersan at
[email protected] | 2010 | saudi-bourse-operator-tadawul-expects-shares-sales-to-continue-next-year |
U.S. Exporters Sell 232,000 Metric Tons of Soybeans to China, USDA Says | By Daniel Enoch | 2010-10-25T13:00:01Z | http://www.bloomberg.com/news/2010-10-25/u-s-exporters-sell-232-000-metric-tons-of-soybeans-to-china-usda-says.html | 10 | 25 | 1fb821febf8bcd615be0f129022162f7ae1565f3 | U.S. exporters sold 232,000 metric
tons of soybeans to China for delivery in the 2010-2011
marketing year that began Sept. 1, the U.S. Department of
Agriculture said today in a statement in Washington. To contact the reporter on this story:
Daniel Enoch in Washington at
[email protected] To contact the editor responsible for this story:
Steve Stroth at
[email protected] | 2010 | u-s-exporters-sell-232-000-metric-tons-of-soybeans-to-china-usda-says |
Rupiah Climbs on Optimism G-20 Currency Pledge Will Spur Currency Gains | By Khalid Qayum | 2010-10-25T02:15:09Z | http://www.bloomberg.com/news/2010-10-25/rupiah-climbs-on-optimism-g-20-currency-pledge-will-spur-currency-gains.html | 10 | 25 | 7b23529ba0fc002524a353cdb39e9936c53035f5 | Indonesia’s rupiah advanced to near
a three-year high on optimism the central bank will tolerate
appreciation after the Group of 20 nations pledged to avoid
weakening their currencies to support growth. Member countries of G-20, which includes Southeast Asia’s
biggest economy, agreed over the weekend to refrain from
“competitive devaluation” and let markets set foreign-exchange
values. The rupiah has gained 5.2 percent this year,
underperforming rival currencies such as Thailand’s baht and
Malaysia’s ringgit that have climbed 11.5 percent and 10.5
percent, respectively, on speculation Bank Indonesia intervened
to support the dollar. “The rupiah gained as a result of the G-20 outcome,” said
Enrico Tanuwidjaja , an economist at OSK-DMG Group in Singapore.
“That suggests this currency war concern should not be over-
emphasized and competitive devaluation will not be desirable.” The rupiah rose 0.1 percent to 8,928 per dollar against the
dollar as of 8:26 a.m. in Jakarta, according to data compiled by
Bloomberg. The currency reached 8,900 on Sept. 30, its strongest
level since June 2007. Bank Indonesia intervened in the market to prevent the
rupiah from becoming too strong, Deputy Governor Halim Alamsyah
said in Jakarta on Oct. 22 without elaborating. Central banks
intervene in currency markets by arranging purchases or sales of
foreign exchange. To contact the reporter on this story:
Khalid Qayum in Singapore at
[email protected] To contact the editor responsible for this story:
Sandy Hendry at [email protected] | 2010 | rupiah-climbs-on-optimism-g-20-currency-pledge-will-spur-currency-gains |
Nigeria Forecasts Growth of 7.75% for 2010, Finance Minister Aganga Says | By Elisha Bala-Gbogbo | 2010-10-25T11:11:40Z | http://www.bloomberg.com/news/2010-10-25/nigeria-forecasts-growth-of-7-75-for-2010-finance-minister-aganga-says.html | 10 | 25 | d8a46b47903633f13175c9c9ae115c16116b4687 | Nigeria forecasts economic growth of
7.75 percent this year, Finance Minister Olusegun Aganga said at
a conference in the capital, Abuja, today. Gross domestic product growth in the first half was 7.4
percent, he said. To contact the reporter on this story:
Elisha Bala-Gbogbo in Abuja at
[email protected] To contact the editor responsible for this story:
Ana Monteiro at
[email protected] | 2010 | nigeria-forecasts-growth-of-7-75-for-2010-finance-minister-aganga-says |
Clarion, KDDI, Nissan Shatai, Shima, Takara, Yahoo Japan: Japanese Stocks | By Norie Kuboyama and Akiko Ikeda | 2010-10-25T06:35:02Z | http://www.bloomberg.com/news/2010-10-25/chugai-kddi-nissan-shatai-shima-takara-yahoo-japan-japanese-stocks.html | 10 | 25 | 37f0edd04b5f44a8bb54a8b33904aeb6 | Japan’s Nikkei 225 Stock Average
fell 25.55, or 0.3 percent, to 9,401.16 as of the 3 p.m. close
in Tokyo. The following were among the most active shares in the
Japanese market today. Stock symbols are in parentheses after
company names. Chugai Pharmaceutical Co. (4519 JT), the Japanese unit of
Roche Holding AG (ROG VX), fell 2.1 percent to 1,490 yen. Net
income at Chugai in the nine months ended Sept. 30 declined 31
percent to 28.1 billion yen ($345 million), as sales fell 11
percent. The company cut its full-year sales outlook by 5.4
percent. Clarion Co. (6796 JT), a car-audio-equipment maker, surged
14 percent to 128 yen, the biggest gain since April 2009. The
company’s stock rating was boosted to “buy” from “reduce” by
Shiro Mikoshiba , an analyst at Nomura Holdings Inc. Hitachi High-Technologies Corp. (8036 JT), a trading
company, gained 3.8 percent to 1,536 yen. First-half net income
at Hitachi High-Technologies was 9.7 billion yen, 57 percent
higher than its projection, according to a preliminary earnings
statement. Jafco Co. (8595 JT), a venture-capital company, slumped 4.4
percent to 1,770 yen, the lowest close since March 2009. Nomura
Holdings Inc. lowered its stock-price estimate on Jafco to 2,100
yen from 2,500 yen, leaving the investment rating unchanged at
“neutral.” Jafco said first-half sales dropped 9.7 percent to
6.47 billion yen. J-Oil Mills Inc. (2613 JT), a cooking-oil producer, lost
3.3 percent to 207 yen, the lowest since March 2004. The company
cut its full-year net income forecast 34 percent to 2.3 billion
yen, citing higher costs for beans, palm oil and other
ingredients. JSR Corp. (4185 JT), a synthetic resin maker, advanced 3.6
percent to 1,452 yen. The company returned to a first-half net
income of 13.3 billion yen from a year-earlier loss on higher
sales. JSR raised its full-year net income outlook 4 percent 26
billion yen. JVC Kenwood Holdings Inc. (6632 JT), a maker of audio
equipment, soared 8.5 percent to 305 yen. Nomura Holdings Inc.
raised its investment rating on JVC Kenwood to “buy” from
“neutral.” KDDI Corp. (9433 JT), Japan’s second-biggest mobile-phone
operator, jumped 7.3 percent to 436,000 yen, the sharpest
increase since November 2008. KDDI said net income rose 10
percent to 65 billion yen in the three months ended Sept. 30.
The company separately said it will spend as much as 100 billion
yen to buy back up to 5.16 percent of its outstanding shares. NEC Corp. (6701 JT), an electronics maker, slipped 2.5
percent to 231 yen. NEC may post a 2 billion yen operating
profit for the six months ended in September, lower than a 5
billion yen target, Nikkei English News reported. NGK Spark Plug Co. (5334 JT), a maker of ceramic products,
sank 3.7 percent to 1,085 yen. The company was cut to
“neutral” from “outperform” by Akihiko Uchino , an analyst at
Mitsubishi UFJ Morgan Stanley Securities Co. Nissan Chemical Industries Ltd. (4021 JT), a chemical
products maker, advanced 3.4 percent to 995 yen. The company had
5.6 billion yen in first-half net income, 12 percent above its
forecast, according to a preliminary earnings statement. Nissan Shatai Co. (7222 JT), a car assembler, gained 5.5
percent to 631 yen, the biggest gain since Dec. 3. First-half
net income at Nissan Shatai reached 6.5 billion yen, exceeding
the company’s forecast of a 2.9 billion yen profit, according to
a preliminary earnings statement. Higher sales contributed to
the profit, according to the document. Shima Seiki Manufacturing Ltd. (6222 JO), a maker of
knitting machinery, retreated 4.4 percent to 1,555 yen, the
lowest close since October 2008. The company almost halved its
full-year net income forecast to 1.3 billion yen from 2.5
billion yen because of a stronger-than-expected yen. Shionogi & Co. (4507 JT), a drugmaker, fell 2.7 percent to
1,467 yen. The company cut its full-year net income outlook by
17 percent to 30 billion yen, citing foreign exchange rates and
one-time losses. Takara Holdings Inc. (2531 JT), a maker of distilled
spirits, rose 3.9 percent to 475 yen. The company booked a
first-half net income of 1.3 billion yen, 63 percent more than
the company’s profit forecast, according to a preliminary
earnings statement. Toshiba Machine Co. (6104 JT), an industrial machinery
maker, jumped 6.9 percent to 327 yen. The company more than
tripled its full-year net income forecast to 1.6 billion yen
from 500 million yen because of recovery in demand. Yahoo Japan Corp. (4689 JT), the operator of Japan’s most-
visited Internet portal, rose 2.8 percent to 28,810 yen. First-
half operating profit at Yahoo Japan rose 11 percent to 76.1
billion yen as sales grew 4.4 percent. To contact the reporters on this story:
Norie Kuboyama in Tokyo at
[email protected] ;
Akiko Ikeda in Tokyo at
[email protected] . To contact the editor responsible for this story:
Darren Boey at [email protected] . | 2010 | chugai-kddi-nissan-shatai-shima-takara-yahoo-japan-japanese-stocks |
GB Auto, Egyptian Co. for Mobile Services May Move: Egypt Equity Preview | By Ahmed A Namatalla | 2010-10-25T04:00:01Z | http://www.bloomberg.com/news/2010-10-25/gb-auto-egyptian-co-for-mobile-services-may-move-egypt-equity-preview.html | 10 | 25 | 31694e73a917d080d4362957d0aaa80ca1beb489 | The following companies may rise or
fall in Egypt’s stock market. Stock symbols are in parentheses
and prices are from the last close. The benchmark EGX30 Index gained 0.1 percent to 6,815.04 in
Cairo. GB Auto (AUTO EY): The Middle East’s biggest independent
car maker, was cut to “sell” from “neutral” at investment
bank EFG-Hermes Holding SAE, which cited the weakening Egyptian
pound, high financing costs and “supply constraints” in Iraq
and Egypt. The shares gained 1.6 percent to 49.93 Egyptian
pounds. Egyptian Co. for Mobile Services (EMOB EY): Egypt’s biggest
mobile-phone network operator by subscribers will report its
third-quarter earnings today after markets close. Net income for
the period was 387 million Egyptian pounds ($67 million),
according to the median estimate of five analysts compiled by
Bloomberg. The shares climbed 2.1 percent to 182.81 pounds. To contact the reporter on this story:
Ahmed A Namatalla in Cairo at
[email protected] To contact the editor responsible for this story:
Claudia Maedler at
[email protected] . | 2010 | gb-auto-egyptian-co-for-mobile-services-may-move-egypt-equity-preview |
General Motors to Introduce First Baojun-Brand Model in China on Nov. 18 | By Bloomberg News | 2010-10-25T07:03:46Z | http://www.bloomberg.com/news/2010-10-25/general-motors-to-introduce-first-baojun-brand-model-in-china-on-nov-18.html | 10 | 25 | 6e3445b50b6151fb0f9738fc199b7319526cb929 | General Motors Co. will introduce
its first car in China under the new Baojun brand on Nov. 18, it
said today in a statement. The Baojun 630 car will be made by GM’s SAIC-GM-Wuling
Automotive Co. joint venture, GM said. To contact the editor responsible for this story:
Ian Rowley at
[email protected] | 2010 | general-motors-to-introduce-first-baojun-brand-model-in-china-on-nov-18 |
APN News & Media Extends About $593 Million of Bank Loans by Five Years | By Sarah McDonald | 2010-10-25T23:42:43Z | http://www.bloomberg.com/news/2010-10-25/apn-news-media-extends-about-593-million-of-bank-loans-by-five-years.html | 10 | 25 | 7f4304e07591338c3a8c071fb0d13a735d42921f | APN News & Media Ltd. , the company
that owns New Zealand’s largest newspaper, agreed to extend
about A$600 million ($593 million) of bank loans. Most of the debt was due to mature in 2011 and was extended
by five years, according to a regulatory filing today. APN,
based in Sydney, continues to consider a sale of retail bonds in
New Zealand, according to the filing. “The new debt structure lays the platform for the company
to successfully execute our strategy of becoming the leading
multimedia operator in each of our local markets and of
diversifying our funding sources,” Chief Financial Officer
Peter Myers said in the statement. APN shares have more than doubled since last March as the
global economic recovery spurs renewed business confidence. The
company earns more than half its revenue in Australia, where
advertising spending may rise 6.6 percent to a record A$13
billion in 2011, the Australian Financial Review reported last
week, citing media buyer Harold Mitchell. APN is considering issuing as much as NZ$150 million of
five-year bonds, according to an Oct. 18 filing. The company
owns the New Zealand Herald, the nation’s most-read newspaper.
It also owns regional publications in Australia and has radio,
online and outdoor advertising businesses, according to its
website . To contact the reporter on this story:
Sarah McDonald in Sydney at
[email protected] . To contact the editor responsible for this story:
Will McSheehy at
[email protected] . | 2010 | apn-news-media-extends-about-593-million-of-bank-loans-by-five-years |
Military's Policy on Gays Shouldn't Be Enforced During Appeal, Group Says | By Karen Gullo | 2010-10-26T04:01:01Z | http://www.bloomberg.com/news/2010-10-25/-don-t-ask-don-t-tell-repeal-shouldn-t-wait-during-appeal-opponents-say.html | 10 | 25 | 6ae49790e8f1a9dc7fa76c258781fb9265dc8a36 | The U.S. military shouldn’t be
allowed to enforce its “Don’t Ask, Don’t Tell” policy while it
appeals a court decision that the rule is unconstitutional, the
group that won the order told a federal appeals court. The Log Cabin Republicans, the group promoting equal rights
for gays and lesbians that sued to block the “Don’t Ask, Don’t
Tell” policy, said in a court filing yesterday that the
government is unlikely to win its appeal seeking to overturn the
ruling and won’t be irreparably harmed if enforcement of the
judge’s order begins while the appeals case moves ahead. Postponing the repeal of “Don’t Ask, Don’t Tell” will
lead to more investigations and discharges of service members in
violation of their constitutional rights, the group said in the
filing to the U.S. Court of Appeals in San Francisco. “Every day the government remains free to implement Don’t
Ask, Don’t tell, American citizens’ constitutional rights are
violated,” the group said. The appeals court on Oct. 20 temporarily blocked
enforcement of a judge’s ruling requiring the government to end
its policy barring gays and lesbians from serving openly in the
military. U.S. District Judge Virginia Phillips in Riverside,
California, ruled Sept. 9 that the policy violates
constitutionally protected due process and free speech rights. President Barack Obama supports repeal of the ban, the
government has said in court papers. The Defense Department’s
findings on how the ban should be ended are scheduled to be
completed in December. Government lawyers have said in court
filings that the policy should be terminated only after advance
planning and training. The case is Log Cabin Republicans v. United States,
10-56634, U.S. Court of Appeals for the Ninth Circuit (San
Francisco). The lower court case is Log Cabin Republicans v.
U.S., 04-08425, U.S. District Court, Central District of
California Riverside). To contact the reporter on this story:
Karen Gullo in San Francisco at
[email protected] . To contact the editor responsible for this report:
David E. Rovella at [email protected] . | 2010 | -don-t-ask-don-t-tell-repeal-shouldn-t-wait-during-appeal-opponents-say |
Light, Eletropaulo Upgraded to `Buy' at Banco Santander; Cemig, Coelce Cut | By Chan Tien Hin | 2010-10-25T06:06:24Z | http://www.bloomberg.com/news/2010-10-25/light-eletropaulo-upgraded-to-buy-at-banco-santander-cemig-coelce-cut.html | 10 | 25 | 856b84fb77306c631c6d06c8bf699c91a80d67c7 | Light SA, Brazil’s second-biggest
electricity distributor, and Eletropaulo Metropolitana SA had
their ratings raised to “buy” at Banco Santander SA to reflect
“solid upside” potential in their shares. Cia. Energetica de Minas Gerais, the Brazilian utility
known as Cemig, Cia. Energetica do Ceara and Energias do Brasil
SA were downgraded to “hold,” according to a report today. To contact the editor responsible for this story:
Chan Tien Hin at
[email protected] | 2010 | ight-eletropaulo-upgraded-to-buy-at-banco-santander-cemig-coelce-cu |
Natural Gas Drops to 13-Month Low in New York on Warm Weather, Surplus | By Moming Zhou and Christine Buurma | 2010-10-25T19:22:17Z | http://www.bloomberg.com/news/2010-10-25/natural-gas-drops-to-13-month-low-in-new-york-on-warm-weather-surplus.html | 10 | 25 | 759716fe006d4a2db62cfac63c88be06 | Natural gas fell to the lowest price
in more than 13 months as forecasts showed warmer-than-usual
weather in the U.S., reducing demand for the heating fuel. Temperatures will be above normal in the East this week and
the Midwest next week, according to MDA Federal Inc.’s EarthSat
Energy Weather in Rockville, Maryland. Gas inventories were 8.4
percent above the five-year average in the week ended Oct. 15,
Energy Department data showed. “We are seeing above-average temperatures for all of the
eastern part of the country and we may continue to see large
storage injections,” said Julio Sera , a broker with Hencorp
Becstone Futures in Miami. “If things continue like they are,
there is really no reason why gas may not test $3 before the end
of November.” Natural gas for November delivery fell 1.5 cent, or 0.5
percent, to $3.317 per million British thermal units on the New
York Mercantile Exchange, the lowest settlement price since
Sept. 14, 2009. Gas futures have declined 41 percent this year
and have been trading at or near 13-month lows since the middle
of this month. The November contract expires on Oct. 27. The more active
December contract fell 2.7 cents to $3.666 per million Btu. New York will have a high of 71 degrees Fahrenheit (22
Celsius) tomorrow, 11 degrees above average, according to
AccuWeather Inc . in State College, Pennsylvania. Boston will
have a high of 70 degrees. About 52 percent of U.S. households use gas for heating,
according to the Energy Department. “We’re seeing some seasonally mild weather that’s really
depressing demand at this point,” said Cameron Horwitz , an
analyst with Canaccord Genuity in Houston. “Some of the
forecasts are predicting a warmer-than-normal winter, so it
doesn’t really look like there’s much hope of burning off excess
inventories.” Mild Weather Warmer-than-normal weather is likely in the U.S. Mid-
Atlantic, South, and parts of the Midwest and Southwest this
winter, Commodity Weather Group meteorologists led by Matt Rogers in Bethesda, Maryland, said in an outlook today. Temperatures may average one or two degrees below normal in
parts of the upper Midwest and northern New England, Commodity
Weather Group said. Gas stockpiles rose 93 billion cubic feet in the week ended
Oct. 15 to 3.683 trillion, the Energy Department reported last
week, a record increase for the month of October. The five-year
average gain for the week is 54 billion cubic feet. “Forecasts for mild weather in the next few weeks spell a
continued high pace of injections, and storage could well exceed
last year’s levels before the season ends,” said James R. Crandell , an analyst at Barclays Capital in New York, in a note
to clients. November Record Stockpiles climbed to a record 3.837 trillion cubic feet
last November before cooler weather spurred demand for the
heating fuel and began to reduce supplies. The number of U.S. gas drilling rigs totaled 965 last week,
33 percent higher than a year earlier, according to data from
Houston-based Baker Hughes Inc. Wholesale natural gas at the benchmark Henry Hub in Erath,
Louisiana, tumbled 26 cents, or 7.5 percent, to $3.19 per
million Btu on the Intercontinental Exchange. Gas futures volume in electronic trading on the Nymex was
162,034 as of 2:41 p.m., compared with a three-month average of
267,000. Volume was 201,183 on Oct. 22. Open interest was
815,910 contracts, compared with the three-month average of
809,000. The exchange has a one-business-day delay in reporting
open interest and full volume data. To contact the reporters on this story:
Moming Zhou in New York at
[email protected] ;
Christine Buurma in New York at
[email protected] . To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2010 | natural-gas-drops-to-13-month-low-in-new-york-on-warm-weather-surplus |
Power Utility Eskom Delays Start of Output at Its Medupi and Kusile Plants | By Alastair Reed | 2010-10-25T13:40:19Z | http://www.bloomberg.com/news/2010-10-25/power-utility-eskom-delays-start-of-output-at-its-medupi-and-kusile-plants.html | 10 | 25 | 2af3cccd21070086516665547bd883db249a51a8 | Eskom Holdings Ltd. said its planned
Medupi and Kusile power plants in South Africa are expected to
start electricity production later than originally targeted. The first unit of Medupi is now expected to come on stream
in the fourth quarter of 2012, compared with an initial start
date of September 2011, the utility said in an e-mailed
statement today. First commercial production from Kusile is now expected
“at the beginning of 2015,” compared with an earlier forecast
of June 2013, Eskom said. To contact the editor responsible for this story:
Alastair Reed at
[email protected] | 2010 | power-utility-eskom-delays-start-of-output-at-its-medupi-and-kusile-plants |
Belgian-German 10-Year Government Yield Spread Narrows After Debt Sales | By Lukanyo Mnyanda | 2010-10-25T10:41:57Z | http://www.bloomberg.com/news/2010-10-25/belgian-german-10-year-government-yield-spread-narrows-after-debt-sales.html | 10 | 25 | ba6eddffc0ba2fc4f486fd65193fc6569c426c72 | The extra yield, or spread , that
investors demand to hold Belgian 10-year bonds over benchmark
bunds narrowed to the least in a week after a sale of 2.75
billion euros ($3.9 billion) of the nation’s securities. Belgium’s 10-year yield decreased five basis points to 3.3
percent as of 11:39 a.m. in London, leaving the spread over
German bunds at 83 basis points, the least since Oct. 15, based
on closing prices. The September 2020 notes were sold at a weighted-average
yield of 3.26 percent and the auction attracted bids for 2.39
times the amount on offer, the Brussels-based debt agency said
today. At the previous auction on Sept. 27, the agency sold the
10-year securities at an average yield of 3.14 percent. The bid-
to-cover ratio on Sept. 27 was 2.55. Belgium also sold bonds due
in September 2013 and in September 2016 today. To contact the reporter on this story:
Lukanyo Mnyanda in London at
[email protected] To contact the editor responsible for this story:
Daniel Tilles at
[email protected] | 2010 | belgian-german-10-year-government-yield-spread-narrows-after-debt-sales |
Southridge Capital Sued by Connecticut Over $26 Million in Investor Fees | By Karen Freifeld and Joshua Gallu | 2010-10-25T21:17:10Z | http://www.bloomberg.com/news/2010-10-25/southridge-capital-sued-by-connecticut-over-26-million-in-investor-fees.html | 10 | 25 | 0719234bd95cbddaf8d78616d548153c2dcf74bf | Southridge Capital Management LLC
was sued by Connecticut over $26 million in fees charged
investors based on what state Attorney General Richard Blumenthal called false statements about the value of assets. The investment firm , based in Ridgefield, Connecticut, also
was sued today by the U.S. Securities and Exchange Commission
and accused of defrauding investors in hedge funds. Southridge overvalued assets of funds it managed through
false financial statements to increase its fees illegally,
Blumenthal said in a statement. The firm acted as general
partner of the funds, providing advice and strategy, Blumenthal
said today in a lawsuit in state court in Hartford filed on
behalf of Connecticut Banking Commissioner Howard F. Pitkin . “Through false financial statements and other violations
of the funds’ private placement memoranda, SCM charged excessive
fees to the funds’ investors,” according to the state’s
complaint, “based on misleading and fraudulent valuations of
the assets SCM managed on behalf of the funds and their
investors.” The state Banking Department subpoenaed Southridge Capital
in 2007 to investigate its operation of five funds that it
advises and manages, according to the complaint. The funds named in the suit are Sovereign Partners LP,
Southridge Partners LP, Dominion Capital Fund Ltd., Dominion
Investment Fund Ltd. and Southshore Capital Fund Ltd. Southridge and Chief Executive Officer Stephen Hicks , who
also was sued, didn’t immediately return calls seeking comment. Illiquid Investments Beginning in late 2003, Hicks sought investors by telling
them that most of their money would be placed in liquid
investments, the SEC said in its lawsuit. By 2007, many
investors in these funds were having difficulty redeeming their
money because it was invested in illiquid securities, according
to the SEC’s suit. Hicks, Southridge and Southridge Advisors LLC
“significantly overvalued” the hedge funds’ largest single
investment, accruing more than $1.8 million in undeserved
management fees, the SEC said in its complaint. The Southridge firms and Hicks caused two hedge funds to
pay about $5 million of legal and administrative expenses
incurred by three other hedge funds, according to the SEC. The agency is seeking disgorgement of illegal gains and
unspecified fines. The state seeks penalties and restitution, as well as a
court order requiring the firm to honor redemption requests by
investors and prohibiting Hicks from engaging in investment-
related activities for 10 years. The Connecticut case is Pitkin v. Southridge Capital
Management, Connecticut Superior Court (Hartford). The federal
case is Securities and Exchange Commission v. Southridge Capital
Management, U.S. District Court, 3:10-cv-01685, District of
Connecticut (New Haven). To contact the reporter on this story:
Karen Freifeld in New York at
[email protected] .
Joshua Gallu in Washington at
[email protected] . To contact the editor responsible for this story:
David E. Rovella at [email protected] . | 2010 | southridge-capital-sued-by-connecticut-over-26-million-in-investor-fees |
Gemalto Sues Google, HTC, Samsung Over Java Card Technology | By Matthew Campbell | 2010-10-25T16:42:49Z | http://www.bloomberg.com/news/2010-10-25/google-htc-samsung-sued-in-texas-by-gemalto-over-java-card-technology.html | 10 | 25 | a6d382cc00ca8cabc4d3b4f96ba9e190fd257bdb | Gemalto NV sued Google Inc. and
phonemakers HTC Corp. , Motorola Inc. and Samsung Electronics Co.
Ltd ., claiming the Android mobile-phone operating system used
its technology without permission. The manufacturer of digital-security technology filed the
patent-infringement suit against the companies in Texas federal
court on Oct. 22, according to the complaint. Gemalto said the
development platform for Android improperly includes its Java
Card technology, which allows software written in Java and other
“high-level programming languages” to run on mobile phones. Google’s Android is now the most popular operating system
for smartphones in the U.S., with Apple Inc.’s iOS and Research
in Motion Inc.’s Blackberry platforms tied for second place,
Nielsen Co. said earlier this month. The Java Card allows applications developed on other
platforms to run on “a resource constrained device” like a
mobile phone, Gemalto said in a statement on its website . The
technology was developed in the 1990s at the company’s Texas
research facilities, according to the statement. HTC “absolutely respects innovation and intellectual
property patents,” and is investigating the Java Card issue,
the company said in an e-mailed statement. Motorola is reviewing
the Gemalto complaint and “will vigorously defend itself,” it
said in an e-mailed statement. Samsung spokeswoman Chenny Kim declined to comment. Google
spokesman Bill Echikson didn’t return calls seeking comment. Gemalto, based in Amsterdam, last week reported a 25
percent increase in third-quarter revenue, led by its security
and secure payments business. The case is Gemalto v. HTC Corporation, HTC America Inc.,
Exedea Inc., Samsung Electronics Co. Ltd., Samsung
Telecommunications America LLC, Motorola Inc., and Google Inc.,
case no. 6:10-cv-00561, United States District Court for the
Eastern District of Texas (Tyler Division). To contact the reporter on this story:
Matthew Campbell in Paris at
[email protected] . To contact the editor responsible for this story:
Vidya Root at [email protected] . | 2010 | google-htc-samsung-sued-in-texas-by-gemalto-over-java-card-technology |
Swiss Franc Strengthens Against Dollar on G-20 Pledge, Bonds Purchases | By Lucy Meakin | 2010-10-25T16:18:13Z | http://www.bloomberg.com/news/2010-10-25/swiss-franc-strengthens-against-dollar-on-g-20-pledge-bonds-purchases.html | 10 | 25 | c9844ab257b451eeedadc5a1accececa0b909116 | The franc gained versus the dollar
after a Group of 20 pledge to avoid “competitive devaluation”
failed to dispel speculation the Federal Reserve will make more
bond purchases, boosting demand for the Swiss currency as a
haven. The franc also snapped a three-day losing streak against
the euro. The dollar slid against 15 of its 16 major
counterparts after the statement by G-20 finance ministers and
central bankers meeting in South Korea included no commitment by
the U.S. to refrain from more so-called quantitative easing. The franc is “really one of the darlings of the foreign
exchange markets right now and people will continue to move into
it very aggressively, especially in these conditions where
there’s not going to be a general consensus of currency policies
from the G-20,” said Peter Rosenstreich , chief market analyst
at ACM Advanced Currency Markets in Geneva. “The market’s
clearly focused on U.S. data and basically how big the U.S.
quantitative easing package is going to be.” The franc gained 0.6 percent against the dollar,
appreciating to 0.9713 at 5:05 p.m. in London. It strengthened
0.3 percent versus the euro, to 1.3586, after earlier weakening
to 1.3672, the lowest since Aug. 11. It has climbed 3.7 percent
this year against a basket of currencies, according to Bloomberg
Correlation-Weighted Currency Indexes. To contact the reporter on this story:
Lucy Meakin in London at
[email protected] . To contact the editor responsible for this story:
Daniel Tilles at [email protected] . | 2010 | swiss-franc-strengthens-against-dollar-on-g-20-pledge-bonds-purchases |
Sensex Climbs, Led by Dr. Reddy's, Tata Motors, as Record Inflows Surge | By Rajhkumar K Shaaw | 2010-10-25T11:03:27Z | http://www.bloomberg.com/news/2010-10-25/sensex-climbs-led-by-dr-reddy-s-tata-motors-as-record-inflows-surge.html | 10 | 25 | a37dc1d4d84644fea88c09929b7645c2 | India’s stock rose, driving the
benchmark index to its highest in more than a week, as foreign
investors increased holdings of local shares amid expectations a
growing economy will boost corporate earnings. Dr. Reddy’s Laboratories Ltd. , the nation’s second-biggest
drugmaker by revenue, rose to the highest in at least 19 years
after second-quarter group profit jumped 32 percent. Global
funds became net buyers of Indian stocks for a 37th trading day,
the longest run of inflows in more than five years. Tata Motors
Ltd. , the biggest truckmaker, also reached a 19-year high as
Chief Executive Officer Carl-Peter Forster said the Jaguar Land
Rover unit is in talks with a possible partner in China. “We are bullish,” said Vaibhav Sanghavi , a fund manager
at Ambit Capital Ltd. in Mumbai. “The money flowing into our
stocks is phenomenal; and it will continue to rise. The quality
of earnings has been satisfactory so far.” Sanghavi said he’s
adding shares of companies related to domestic consumption,
without naming any. The Bombay Stock Exchange’s Sensitive Index, or Sensex ,
gained 137.26, or 0.7 percent, to 20,303.12 as of the 3:30 p.m.
close in Mumbai. The S&P CNX Nifty Index on the National Stock
Exchange rose 0.7 percent to 6,105.80. The BSE 200 Index
increased 0.6 percent to 2,582.87. Dr. Reddy’s gained 1.8 percent to 1,638.6 rupees. Tata
Motors increased 3.2 percent to 1,185.65 rupees. Both stocks
closed at the highest level since at least January 1991. Hindustan Unilever Hindustan Unilever Ltd. , the biggest household products
maker, rose 1.7 percent to 306.3 rupees. The company’s second-
quarter profit surged 32 percent to 5.66 billion rupees ($128
million), topping the mean 5.2 billion-rupee estimate among 24
analysts surveyed by Bloomberg. Reliance Industries Ltd. , the
most valuable company in India, climbed 0.8 percent to 1,090.35
rupees. Sterlite Industries (India) Ltd. , the largest copper and
zinc producer, soared 2.6 percent to 172.55 rupees. Hindalco
Industries Ltd. , the biggest aluminum producer, surged 4.4
percent to 221.2 rupees, its highest since at least since
January 1991. Metals producers climbed as industrial metals
rallied on demand from investors seeking to protect their wealth
against a decline in the dollar. Copper advanced toward a 27-
month high, while zinc and lead rose to their highest level
since January. India’s stocks, the best performers this year among the
world’s 10 biggest markets, will extend gains amid the “biggest
wealth transfer in history” from developed-nation equities,
according to the country’s largest money manager. Growing Economy “The Indian economy is going to quadruple in the next 10
to 12 years and money will find its way” in, said Sunil Singhania , head of equities at Reliance Capital Asset Management
Ltd., which manages $32 billion in assets. “You have one bloc
that is growing at 6 percent with an appreciating currency and
the other struggling to grow at 2 percent with a depreciating
currency.” Emerging-market stock mutual funds attracted more than $60
billion this year as benchmark interest rates near zero percent
in the U.S. and Japan lifted demand for higher-yielding assets,
data compiled by Cambridge, Massachusetts-based research firm
EPFR Global show. U.S. stock funds had outflows of $71 billion,
according to Investment Company Institute data. “Demographics are in favor of India,” Singhania, 43,
whose Reliance Growth Fund is India’s best performer over the
past decade, said in an interview in Goa, India on Oct. 23.
“Whenever a person ages, the business and wealth gets
transferred to the younger generation. If you take the world as
a family, the same thing is going to happen.” Drugmakers Singhania is betting on shares of drugmakers, capital goods
and infrastructure companies to beat the benchmark indexes,
declining to name specific shares. Overseas investors bought a net 9.77 billion rupees of
Indian equities on Oct. 21, extending this year’s record inflows
to 1.1 trillion rupees, according to the nation’s market
regulator. The 37th day of net purchases was the longest run of
inflows since the 40-day period ended Aug. 9, 2005, according to
data compiled by Bloomberg. To contact the reporter on this story:
Rajhkumar K Shaaw in Mumbai at
[email protected] To contact the editor responsible for this story:
Linus Chua at [email protected] | 2010 | sensex-climbs-led-by-dr-reddy-s-tata-motors-as-record-inflows-surge |
Japan's Igarashi Says Yen Sales Most Effective When 'Surprise' | By Toru Fujioka and Kyoko Shimodoi | 2010-10-26T00:09:38Z | http://www.bloomberg.com/news/2010-10-25/yen-sales-most-effective-when-a-surprise-japan-vice-finance-chief-says.html | 10 | 25 | 31af93c35e3542a698753be525980adf | Currency-market intervention is most
effective when it’s a “surprise,” a senior Japanese Finance
Ministry official said, sending a warning to traders that Japan
is prepared to act again to stem the yen’s advance. “A surprise move would probably be effective to some
extent,” Japanese Vice Finance Minister Fumihiko Igarashi said
in an interview in Tokyo yesterday. “We can’t make an
announcement in advance that we will act, but, on the other hand,
we can’t say that we won’t act either.” Group of 20 finance authorities said last weekend that
while countries should refrain from “competitive devaluations”
of exchange rates, advanced economies should also be vigilant
about excessive currency moves. Taking that as a cue, Finance
Minister Yoshihiko Noda repeated after the G-20 meeting that
Japan remains ready to sell yen. Japan’s currency has appreciated more than 5 percent since
authorities intervened in currency markets for the first time in
six years on Sept. 15. It strengthened to 80.41 to the dollar
yesterday, a 15-year high, and traded at 80.83 at 9:02 a.m. in
Tokyo today. “The recent strengthening in the yen has been
abrupt,” Igarashi said. ‘Gravitational Pull’ “The gravitational pull of 80.0” yen to the dollar “now
looks unavoidable,” Adrian Schmidt , foreign exchange strategist
at Lloyds TSB Bank PLC, wrote in a note yesterday. That means
that Japan “could be persuaded to intervene if a global plan to
tackle imbalances and more concrete details to combat excessive
market volatility in exchange rates come to nothing” at the G-
20 summit in Seoul on Nov. 11-12. Igarashi said that he didn’t know how “accepting” U.S.
Treasury Secretary Timothy Geithner and other policy makers
would be of further foreign-exchange intervention, and that
“there needs to be a sense of trust among authorities as well
as among governments.” The Japanese currency has gained more than 15 percent
against the dollar this year, threatening to erode exporters’
repatriated earnings from abroad. “Yen intervention risks remain high,” Mansoor Mohi-uddin ,
foreign-exchange strategy chief at UBS AG, wrote in a note
yesterday. “Japan can point to the reference about being
vigilant against ‘the risk of disorderly movements in exchange
rates’ if it wants to intervene again,” he wrote, referring to
the G-20’s Oct. 23 statement. Watching Markets Cabinet ministers have signaled that intervention remains
an option. Noda said today that yen movements have been “one-
sided” and he will continue to watch currency markets with
great interest. Economy Minister Banri Kaieda said in an Oct. 22
interview that intervention is permissible when currencies are
volatile and that overseas opposition shouldn’t deter policy
makers from combating abrupt yen moves. “Of course, the basic rule is that manipulative forces
should be stripped from markets,” Igarashi said. “But when
price moves are extreme and based on speculation, that can
disrupt the economy” and authorities must take a “bold
stance,” he said. Igarashi, who was appointed to his post last month, is a
ruling Democratic Party of Japan politician who once cited
traders as saying Japan’s intervention efforts were “foolish.”
The 61-year-old lawmaker early in his career served as a
political reporter at news agency Jiji Press. Restraining Movements Igarashi said on Oct. 7 that Japan wouldn’t weaken the yen
to enhance its export competitiveness and that any intervention
is aimed at restraining excessive movements. Group of 20 finance chiefs vowed to avoid weakening
currencies to lift exports to calm fears of a trade war stemming
from using cheaper currencies to spur growth. They called for
reduced trade imbalances while stopping short of a U.S. proposal
for targets that was aimed at making a yuan advance more
palatable to China. Leaders may take up the debate at the
November Seoul summit. Among major economies, conducting intervention has “not
been popular because of doubts about its potential for success,
and the reluctance of governments to be seen to be opposing
market forces, and in particular to be defeated by them,” wrote
Lloyds TSB’s Schmidt. “This looks to be less a problem for
Japan than most other countries, as they have a history of being
more prepared to intervene.” Japanese Prime Minister Naoto Kan has pledged more than 5
trillion yen ($62 billion) in stimulus packages and the Bank of
Japan unexpectedly cut its benchmark interest rate near zero
this month while also creating an asset-purchase fund to buy
government and corporate debt as well as exchange-traded funds. Japan’s exports grew at the slowest pace this year in
September, increasing 14.4 percent from a year earlier, a sign
the country is losing its chief engine for growth as its
currency rises just as overseas demand cools. Reports this week are projected to show that industrial
production slid and deflation persisted, adding to concern that
the expansion is losing momentum. To contact the reporter on this story:
Kyoko Shimodoi in Tokyo at
[email protected] ;
Toru Fujioka in Tokyo at
[email protected] To contact the editor responsible for this story:
Chris Anstey at
[email protected] | 2010 | yen-sales-most-effective-when-a-surprise-japan-vice-finance-chief-says |
Zoomlion Profit Declines 48% After China Slowdown Saps Demand | By Jasmine Wang | 2013-08-28T09:18:12Z | http://www.bloomberg.com/news/2013-08-28/zoomlion-profit-declines-48-after-china-slowdown-saps-demand.html | 8 | 28 | 028e730d66ad3baf8d52b45d42307660c14b6251 | Zoomlion Heavy Industry Science and
Technology Co. reported a 48 percent drop in first-half profit
as China’s slowing economic growth damped demand at the nation’s
second-largest construction equipment maker. Net income was 2.92 billion yuan in the six months ended
June, compared with 5.62 billion yuan a year earlier, Zoomlion
said in a filing to Hong Kong stock exchange today. Sales fell
31 percent to 20.2 billion yuan. Zoomlion and bigger rival Sany Heavy Industry Co. (600031) are
contending with weaker sales as growth of fixed asset investment
slowed in China. “There will be limited room for growth in
infrastructure investment in the second half” and construction
of real estate will remain at a low level, Zoomlion said in the
earnings statement today. Shares (1157) of Zoomlion fell 3.1 percent to HK$6.29 in Hong Kong
trading today, before the earnings were released. The stock has
declined 45 percent this year, compared with a 5 percent drop in
the benchmark Hang Seng Index . Zoomlion, based in Changsha city of central China’s Hunan
province, halted stock trading at least twice this year after
news reports questioned its sales data. The company has
repeatedly denied the allegations. China’s urban fixed-asset investment growth eased to 20.1
percent in the first half from a year earlier, the official
Xinhua News Agency reported in July. The expansion was down 0.3
percentage points, according to the report. Zoomlion is planning to boost sales of its environmental
machinery in a bid to offset the lower demand for its other
products and boost profit. The company is also seeking to raise
sales from outside China through acquisitions or cooperating
with overseas businesses. To contact the reporter on this story:
Jasmine Wang in Hong Kong at
[email protected] To contact the editor responsible for this story:
Anand Krishnamoorthy at
[email protected] | 2013 | zoomlion-profit-declines-48-after-china-slowdown-saps-demand |
Investec Leads Funding of S. African Gas-Power Plants | By Paul Burkhardt | 2013-08-28T14:44:31Z | http://www.bloomberg.com/news/2013-08-28/investec-leads-six-funders-of-two-south-african-gas-power-plants.html | 8 | 28 | 063b8942763832e4bbfabcdaa26781930816523b | (Corrects quote to show bank is one of lead arrangers in
second paragraph.) Investec Plc (INVP) will lead the financing
of two South African gas power plants developed by GDF Suez that
will generate more than 1,000 megawatts as part of the country’s
9.7 billion rand ($933 million) independent producer program. “We’re one of the coordinating lead arrangers,” Robert Gecelter, a member of Investec’s Project and Infrastructure
Finance team, said by phone. “Investec is one of six lenders in
the syndicate and we provide a little more than the average
amount to the project.” The 670-megawatt Avon gas plant in KwaZulu-Natal is due to
start generating in 2016 and the 335-megawatt Dedisa plant in
Eastern Cape a year earlier, Investec said in a statement after
the banks closed the funding. GDF Suez (GSZ) is the main developer of
the plants, to be operated under 15-year power purchase accords
with state utility Eskom Holdings SOC Ltd., Investec said. The country is seeking to reduce its reliance on coal-fired
power, with 80 percent of its current 41,900-megawatt capacity
coming from the fossil fuel , according to Eskom. South Africa
also plans to add 3,725 megawatts of generating capacity from
renewable sources by 2016 through a program of five tenders. Investec didn’t identify the other five lenders. To contact the reporter on this story:
Paul Burkhardt in Johannesburg at
[email protected] To contact the editor responsible for this story:
John Viljoen at
[email protected] | 2013 | investec-leads-six-funders-of-two-south-african-gas-power-plants |
Philippine Stocks Slump to Eight-Month Low Amid Outflows Concern | By Ian Sayson | 2013-08-28T08:01:11Z | http://www.bloomberg.com/news/2013-08-28/philippine-stocks-tumble-to-nine-month-low-amid-outflows-concern.html | 8 | 28 | 9b021e2eea9049dea39738a91c93f467 | Philippine stocks tumbled for a
second day, sending the benchmark index to the lowest level in
eight months, amid concern that capital outflows will accelerate.
The peso fell to the lowest level in almost three years. The Philippine Stock Exchange Index (PCOMP) dropped 3 percent to
5,738.06 at the close in Manila . The gauge earlier slumped as
much as 6 percent to its lowest intraday level since Nov. 26. SM
Investments Corp. (SM) , owner of the largest shopping-mall operator
and biggest grocery chain, slid 7.5 percent to the lowest since
October. Ayala Land Inc. (ALI) , the nation’s biggest builder, sank 4.7
percent to the lowest level since December. The PSE index has fallen 14 percent this month , poised for
the steepest loss since October 2008, amid concerns that reduced
U.S. Federal Reserve stimulus will spur capital outflows and
local protests over discretionary government budgets will slow
state spending. Foreign investors have sold a net $219 million
of Philippine shares in August after buying $1.6 billion this
year through July. Global equities retreated this week on
speculation the U.S. will take military action against Syria . “There is global fear that the U.S. will tighten liquidity
and then add the political tension in Syria,” said Rico Gomez,
a Manila-based money manager at Rizal Commercial Banking Corp.,
which oversees about $2.8 billion. “There’s unrest for
emerging-market assets.” The PSE gauge is valued at 16 times estimated earnings for
the next 12 months, the cheapest since November 2012. That’s
still the second-highest level among 21 developing-nation stock
indexes tracked by Bloomberg. The MSCI Emerging Markets Index
has a multiple of 9.7. Bond Purchases The peso fell 0.5 percent to its weakest level since
September 2010, according to Tullett Prebon Plc. The yield on
the benchmark seven-year peso bond rose four basis points, or
0.04 percentage point, to 3.62 percent, the highest level since
July 17, according to midday fixing prices at Philippine Dealing
& Exchange Corp. The Fed is expected to cut bond purchases next month,
according to 65 percent of economists in a Bloomberg survey from
Aug. 9-13. Fed Chairman Ben S. Bernanke has told Congress that
any reduction in stimulus would depend on the economy’s
performance. Philippine, Thai and Indonesian markets led a four-year
rally in global stocks through May as corporate profits reached
record highs on rising domestic demand and Fed stimulus spurred
international investors to seek riskier assets. The Philippine economy grew 7.8 percent in the first
quarter from a year earlier, the fastest expansion among 17 Asia
Pacific nations tracked by Bloomberg. Second-quarter growth
probably expanded at a similar pace, Economic Planning Secretary
Arsenio Balisacan said yesterday. The $250 billion economy expanded 7.2 percent in the three
months to June, according to a median estimate of 24 economists
before the 10 a.m. report tomorrow. “While its fundamentals remain good, the Philippines can’t
be insulated from the risk aversion that’s growing primarily
from the anticipation that we are moving to a period when the
U.S. will ease on stimulus,” said Jonathan Ravelas , chief
market strategist at BDO Unibank Inc. in Manila. “Throw in the
threat of a war in Syria and rising oil prices and the
temperature for emerging markets just got hotter for some
investors. It’s hard to keep elevated valuations in this
environment.” Global funds have withdrawn about $44 billion from
emerging-market stock and bond funds since the end of May
through last week, according to data provider EPFR Global, a
Cambridge, Massachusetts-based firm that tracks fund flows. To contact the reporter on this story:
Ian Sayson in Manila at
[email protected] To contact the editor responsible for this story:
Michael Patterson at
[email protected] | 2013 | philippine-stocks-tumble-to-nine-month-low-amid-outflows-concern |
Emirates Mulls Sukuk for $4.5 Billion in Planes: Islamic Finance | By Deena Kamel Yousef and Samuel Potter | 2013-08-28T12:03:36Z | http://www.bloomberg.com/news/2013-08-28/emirates-mulls-sukuk-for-4-5-billion-in-planes-islamic-finance.html | 8 | 28 | 8bf62baa444c4799a29c908cb022c2c5 | Emirates, the world’s biggest
airline by international passenger traffic, is considering the
sale of Islamic bonds as it seeks to raise $4.5 billion in the
financial year starting April 2014 to pay for planes. The Dubai-based carrier will need an average of $5.34
billion a year over the next five years, including 2013, to
finance 119 aircraft deliveries, Brian Jeffery, senior vice
president for corporate treasury, said in an interview at the
airline’s headquarters, which overlook Dubai International
Airport. Among financing options the company could tap the sukuk
or non-Shariah-compliant bond market early next year, he said. Emirates last sold $1 billion of Islamic bonds in March,
before speculation that the U.S. Federal Reserve will reduce its
bond purchasing program prompted an emerging-market debt selloff
and sent yields higher . The state-owned airline is undergoing a
period of rapid growth as its home base Dubai recovers from the
2008 global financial crisis. Passenger traffic through Dubai
airport jumped 17 percent in the first half to 32.6 million and
hotel occupancy reached 84.6 percent. The debt market is currently volatile, “and that is not
ideal for us, but volatility has not stopped us from issuing
bonds in the past,” Jeffery said last week. “I’m pretty
confident that, given the brand and the credit story of
Emirates, sufficient funding will be available.” Yields Rise Average yields on global corporate sukuk have risen 46
basis points to 4.62 percent since the Fed said June 19 it might
taper its asset-purchase program as early as this year,
according to the HSBC/Nasdaq Dubai Corporate US Dollar Sukuk
Index. The yield on Emirates’ $1 billion sukuk, which carries a
3.875 percent profit rate, increased 40 basis points, or 0.4 of
a percentage point, in the period to 5.1 percent at 4:03 p.m. in
Dubai. The so-called amortizing notes have a final maturity date
of March 2023 and a weighted average life of five years. Emirates’ decision on whether to sell bonds will depend
“on pricing and an acceptable structure,” Jeffery said. Other
options for funding are commercial debt, operating leases and
export credits, which are typically restricted to 20 percent of
the deliveries, he said. Cash raised for next year will finance the delivery of 21
aircraft including 10 Airbus SAS A380s, nine Boeing Co. 777-300
ER and two Boeing 777 freighters, Jeffery said. Emirates is established as a major global carrier, serving
134 destinations in 76 countries. Its fleet of Airbus A380
double-deckers has turned Dubai into an international aviation
crossroads, stripping business from veteran carriers such as Air
France-KLM Group and Deutsche Lufthansa AG of Germany . Keeping ‘Awake’ Emirates, which begins its fiscal year on April 1, needed
$5.5 billion this year to finance 25 aircraft deliveries,
Jeffery said. Of this, it raised $2.9 billion from an enhanced
equipment trust certificate issued in June 2013 through Doric,
vanilla finance leases and export credits, and pure operating
leases for two freighter aircraft. It also issued $750 million
in non-Shariah compliant bonds in January. Of the 25 aircraft, financing for 21 has been arranged.
Emirates is now evaluating offers for the remaining four
aircraft for U.S. and European export credits, Jeffery said. “The availability of funding generally, and the factors
that influence that, are what keep me awake,” said Jeffery.
“If the banks are having their own problems or the bond markets
collapse that will affect us.” IPO Net income at Emirates soared 34 percent to 3.1 billion
dirhams ($845 million) in the last fiscal year. The same year
presented the company with its “real test” as it received 35
aircraft and had to raise $7 billion, Jeffery said. On average
the airline takes delivery of 24 planes a year. The carrier’s ability to raise funds proves it has no need
for a credit rating , Jeffery said. Emirates boasts a fleet of
201 aircraft and has 192 on order worth more than $71 billion at
list prices, according to the airline’s fact sheet. Jeffery said he is “not too concerned” that runway
repairs at Dubai International Airport starting May 2014 would
affect the airline’s financing capabilities, and said it is
being dealt with at “the commercial and operational level.” Meanwhile Emirates has no plans for an IPO, as far as
Jeffery is aware. The decision rests with the Dubai government,
the airline’s owners, he said. To contact the reporters on this story:
Deena Kamel Yousef in Dubai at
[email protected] ;
Samuel Potter in Dubai at
[email protected] To contact the editors responsible for this story:
Claudia Maedler at
[email protected] ;
Benedikt Kammel at
[email protected] | 2013 | emirates-mulls-sukuk-for-4-5-billion-in-planes-islamic-finance |
Peru Forecasts Biggest Trade Deficit Since 1998 on Metals Slump | By John Quigley | 2013-08-28T18:30:40Z | http://www.bloomberg.com/news/2013-08-28/peru-forecasts-biggest-trade-deficit-since-1998-on-metals-slump.html | 8 | 28 | 9999849ebb0fd1982f69af871323b45821e32d5e | Peru will posts its widest trade
deficit in 15 years in 2013 after a drop in metal exports,
dimming the outlook for economic growth , the government said. Exports will fall 8 percent to $42 billion, resulting in a
$720 million trade gap , the Finance Ministry said in a report
published in state newspaper El Peruano today. The Andean nation
had a $4.5 billion surplus last year. The price of copper, which accounts for about a quarter of
Peru’s exports, has dropped 9.6 percent this year, damping
private investment in the world’s third largest exporter of the
metal. The economy expanded 4.4 percent in June, the second
slowest pace in more than three years, while the Peruvian sol
has dropped 9.2 percent against the dollar in 2013. Reduced Chinese demand has “prompted a significant fall in
the prices of the raw materials we export,” Finance Minister
Miguel Castilla said in Congress today. “The data we see allows
us to say 2014 will be better. The world should keep
recovering.” Stronger global growth and Peru’s increased copper
production will fuel a rebound in exports next year, Castilla
said. The government forecasts the economy will expand 5.7
percent in 2013 and about 6 percent next year, the fastest in
South America . The mining and hydrocarbons industries will each
expand 10 percent in 2014. To contact the reporter on this story:
John Quigley in Lima at
[email protected] To contact the editor responsible for this story:
Andre Soliani at
[email protected] | 2013 | peru-forecasts-biggest-trade-deficit-since-1998-on-metals-slump |
Manchester United Plans $46.5 Million Move for Luiz: Roundup | By Dan Baynes | 2013-08-28T09:19:51Z | http://www.bloomberg.com/news/2013-08-28/manchester-united-plans-46-5-million-move-for-luiz-roundup.html | 8 | 28 | 3ff2d31a11d727291ea36d0828d1180ad92f6e8a | The following is a roundup of soccer
stories from U.K. newspapers, with clickable Internet links. Luiz Lined Up Manchester United wants to sign Chelsea’s David Luiz and is
prepared to pay 30 million pounds ($46.5 million) for the
Brazilian defender, the Daily Mirror reported . Acquiring Luiz has been a United priority for weeks, and
manager David Moyes suspects the 26-year-old may not be a Jose Mourinho-style player because he takes risks at the back, the
newspaper added. Contract Extension Wayne Rooney will stay at United this season after deciding
not to submit a transfer request and will be offered a contract
extension if he continues to show his commitment following a
flirtation with Chelsea, the Daily Telegraph reported . After repelling the London club’s advances, United intends
to open negotiations with Rooney and his advisers this year
about an extension to the England forward’s deal that expires in
2015, the newspaper added. Eto’o Deal Chelsea is close to signing Cameroon striker Samuel Eto’o
on a one-year contract from Russian club Anzhi Makhachkala, the
Daily Mail reported . The Blues already acquired playmaker Willian from Anzhi
pending a work permit hearing today and Eto’o’s transfer will be
part of the same 32 million-pound package, the newspaper added. Transfer Chain Gareth Bale’s world-record 90 million-pound move to Real
Madrid is being delayed by a transfer chain as Tottenham Hotspur
doesn’t want to sell the winger until it’s recruited a
replacement, the Daily Telegraph reported . Spurs are closing in on a 30 million-pound deal for Roma’s
Erik Lamela, whose club won’t sign off on the trade until it’s
bought Adem Ljajic from Fiorentina, the newspaper added. Mata in Demand Tottenham wants to sign Spanish playmaker Juan Mata from
Chelsea and has been told by Zenit St. Petersburg that Brazil
striker Hulk isn’t for sale, the Daily Mirror reported . Arsenal manager Arsene Wenger is also interested in Mata,
who may be available for transfer following his omission from
the Chelsea starting lineup at Manchester United two days ago,
the Daily Mail reported . To contact the reporter on this story:
Dan Baynes in Sydney at
[email protected] To contact the editor responsible for this story:
Christopher Elser at
[email protected] | 2013 | anchester-united-plans-46-5-million-move-for-luiz-roundup |
Permira Fundraising Said to Add Pace After Early Struggle | By Kiel Porter | 2013-08-28T09:31:24Z | http://www.bloomberg.com/news/2013-08-28/permira-fundraising-said-to-add-pace-after-early-struggle.html | 8 | 28 | 00115a8a48898e46b930be29fd03e7c751a62c4c | Permira Advisers LLP’s efforts to
attract investors to its latest leveraged buyout fund are
picking up speed after the firm initially struggled to find
backers, three people with knowledge of the talks said. The firm is in discussions with two U.S.-based institutions
ready to commit as much as $200 million each for its fifth pool,
Permira V, said the people, who asked not to be identified
because the talks are private. Permira may now hit its 5
billion-euro ($6.7 billion) target as soon as January, three
months before its April deadline, the people said. Permira, which has stakes in Hugo Boss AG (BOSS) and German
broadcaster ProSiebenSat.1 Media AG (PSM) , had found it hard to
attract capital after its previous pool, an 11.1 billion-euro
fund raised in 2006, tumbled in value following the financial
crisis. As stock markets rebounded in the past 24 months, the
valuation of the fund has climbed. London-based Permira now
values the fund at 40 percent more than the initial cost of the
investments, according to documents seen by Bloomberg. The firm spent 18 months marketing its latest fund before
holding an initial close in April 2012 at 2.2 billion euros,
allowing it to start spending the money. Private-equity firms
typically take eight months to hold a first close, while the
average gap between that point and completing the fundraising is
14 months, according to data provider Preqin Ltd. Officials at Permira declined to comment on the fund. Private-equity firms typically pool money from pension
plans and endowments with a mandate to buy companies within five
to six years, then sell them and return the money and a profit
after 10 years. The firms usually charge a management fee of as
much as 2 percent and keep 20 percent of the profits from
investments. To contact the reporter on this story:
Kiel Porter in London at
[email protected] To contact the editor responsible for this story:
Edward Evans at
[email protected] | 2013 | permira-fundraising-said-to-add-pace-after-early-struggle |
U.S. Natural Gas Futures Gain Third Day on Hotter Weather | By Chou Hui Hong | 2013-08-28T02:23:55Z | http://www.bloomberg.com/news/2013-08-28/u-s-natural-gas-futures-gain-third-day-on-hotter-weather.html | 8 | 28 | 916e16ccce3b2acf063e917fc0b9d18877f5397c | Natural gas futures rose in New York
on speculation that a heat wave in the eastern U.S. this week
will spur fuel demand before the weather turns cooler. Futures for September delivery gained as much as 0.7
percent to $3.56 per million British thermal units in electronic
trading on the New York Mercantile Exchange and were at $3.558
at 9:47 a.m. Singapore time. The contract settled 0.6 percent
higher at $3.534 yesterday. Forecasts showed unusually hot weather will linger across
the lower 48 states over the next five days, according to MDA
Weather Services in Gaithersburg, Maryland . The high temperature in New York City and Chicago on Sept.
4 may be 75 degrees Fahrenheit (24 Celsius), 4 below normal for
both cities, according to AccuWeather Inc. in State College,
Pennsylvania . Power generation accounts for 32 percent of U.S.
gas demand, according to the Energy Information Administration,
the Energy Department’s statistical arm. To contact the reporter on this story:
Chou Hui Hong in Singapore at
[email protected] To contact the editor responsible for this story:
Alexander Kwiatkowski at
[email protected] | 2013 | u-s-natural-gas-futures-gain-third-day-on-hotter-weather |
Apple Said to Plan First Tokyo Retail Store Since 2005 | By Kathleen Chu and Takashi Amano | 2013-08-28T17:48:40Z | http://www.bloomberg.com/news/2013-08-28/apple-said-to-plan-first-tokyo-retail-store-opening-since-2005.html | 8 | 28 | 35c6deda1bcf4b18abbef31bd5459a20 | Apple Inc. (AAPL) plans to open a store in Tokyo ’s upscale Omotesando shopping district as early as March, adding its first outlet in the city in years as Japan’s economy recovers, according to a person familiar with the plan. Construction is scheduled to be completed by February, the person said, asking not to be identified because they aren’t authorized to speak for Apple. The store would be Apple’s first opening in Tokyo since August 2005, according to the company’s website, which is advertising jobs for a new store in the city. Takashi Takebayashi, a Tokyo-based spokesman for Apple, didn’t immediately return a telephone call seeking comment. The iPad-maker’s first store in Tokyo in almost a decade is under construction as Prime Minister Shinzo Abe unveils the third prong of his strategy to boost economic growth that has already included fiscal stimulus and monetary policy. “For Apple, the Japanese market is appealing in terms of quantity and price,” said Satoru Kikuchi, an analyst at SMBC Nikko Securities Inc. “There is a room to expand tablet sales and a possibility the Japanese market expands if Apple’s mobile carrier partners increase.” NTT DoCoMo Inc. (9437) , Japan’s largest wireless carrier, would consider carrying the iPhone if it can limit the handset’s share of sales to less than 30 percent of the company’s total, Chief Financial Officer Kazuto Tsubouchi said Aug. 8. The Japanese carrier’s online store, called dmarket, offers music, videos and games and competes with Apple’s iTunes store. Real Estate Prime Minister Abe has promised to loosen business regulations and increase government support to help the country’s industry as part of the “third arrow” plan, following fiscal and monetary stimulus. Consumer prices rose in June, and the world’s third-biggest economy expanded at an annualized 2.6 percent in the three months through June 30. The land costs about 16 billion yen ($164 million) and a completed store with Apple as tenant would value the property at around 25 billion yen, said Seth Sulkin, a representative director at Tokyo-based real estate and asset manager Pacifica Capital KK. Sulkin was Apple’s real estate adviser for all seven of the company’s previous stores in Japan . “Apple wants the best real estate they can get,” said Sulkin. “They are particular about size and shape. If they have to wait to get the real estate, they would.” Earlier this year, the iPhone maker moved its Tokyo headquarters to the Roppongi Hills complex from the Shinjuku neighborhood to take advantage of lower rents. Top Seller The architect responsible for the building identified on a construction sign at the site is Tokyo-based Jun Mitsui & Associates Inc. Architects . The same design group handled projects including De Beers Ginza Building and the New Haneda Airport International Terminal, according to the firm’s website. Apple, based in Cupertino, California , plans to introduce a new phone at a Sept. 10 event, a person familiar with the matter has said, and the company promised “several more game changers” in the product pipeline as it tries to fend off Samsung Electronics Co. (005930) and Chinese makers selling cheaper handsets. Apple rose 1.2 percent to $494.27 at 1:47 p.m. in New York. The stock had lost 8.2 percent this year through yesterday. The building housing the new Tokyo store would have three levels, including two underground, and a total floor area of 20,109 square feet (1,868 square meters), according to the construction board posted on the site. The sign didn’t say how much space would be occupied by Apple. The site is near other luxury brand shops including Kering SA (KER) ’s Gucci and Coach Inc. Rents for prime retail space in Tokyo are the third-most expensive in Asia at $864 per square foot a year, according to CBRE Group Inc. Hong Kong, which has three Apple stores, charges the most retail rent at with $4,328 per square foot per year. To contact the reporters on this story: Kathleen Chu in Tokyo at [email protected] ; Takashi Amano in Tokyo at [email protected] To contact the editors responsible for this story: Michael Tighe at [email protected] ; Andreea Papuc at [email protected] | 2013 | apple-said-to-plan-first-tokyo-retail-store-opening-since-2005 |
Syrian Pound Slides as U.S., Allies Consider Military Strikes | By Donna Abu-Nasr | 2013-08-28T07:38:47Z | http://www.bloomberg.com/news/2013-08-28/syrian-pound-slides-as-u-s-allies-consider-military-strikes.html | 8 | 28 | 1205becdc16ae65e217529a2cc0ce6fb1cbe80a1 | Syria ’s currency slid on the black
market as the U.S. and its allies consider military strikes on
the country to punish its government for alleged use of chemical
weapons. The pound dropped to 240 per dollar in unofficial trading,
according to local currency websites and a trader who asked not
to be identified. It was about 195 per dollar earlier this week.
The official rate plunged 8.8 percent yesterday to 123.7 per
dollar, according to the Syrian central bank. Central Bank Governor Adib Mayaleh said there was no run on
the currency to justify the drop, according to the state-run
SANA news agency. Syria has taken a series of measures to limit the decline
of its currency, which plunged as low as 345 a dollar last
month. President Bashar al-Assad has issued a decree banning the
use of foreign currencies for payments and offenders may face
prison sentences of three years. Syria’s 15 private banks have
been allowed to sell dollars to Syrians at a rate fixed by the
central bank and lower than the black market rate. The pound traded at about 47 to the dollar before the start
of the insurgency against President Bashar al-Assad in March
2011. Since then, a deepening civil war together with
international sanctions have crippled the country’s economy. To contact the reporter on this story:
Donna Abu-Nasr in Beirut at
[email protected] To contact the editor responsible for this story:
Andrew J. Barden at
[email protected] | 2013 | syrian-pound-slides-as-u-s-allies-consider-military-strikes |
Williams-Sonoma Falls as Forecast Trails Estimates | By Cotten Timberlake | 2013-08-28T20:43:07Z | http://www.bloomberg.com/news/2013-08-28/williams-sonoma-profit-tops-estimates.html | 8 | 28 | a3629c0719cb95d468a2053b328baf94049732a2 | Williams-Sonoma Inc. (WSM) , the owner of
its namesake, Pottery Barn and West Elm home-goods chains, fell
the most in seven months after it forecast annual profit that
trailed analysts’ estimates. The shares slid 4.2 percent to $56.97 at the close in New
York , for the biggest decline since Jan. 17. Williams-Sonoma,
based in San Francisco, has gained 30 percent this year,
compared with a 15 percent increase for the Standard & Poor’s
500 Index. The retailer has been using promotions that eroded its
profitability to maintain store traffic amid increased
competition. Profit excluding some items in the current fiscal
year will be as much as $2.79 a share, up from a previously
projected maximum of $2.77, the company said today in a
statement. Analysts estimated $2.81 on average. Gross margin, or the portion of sales left after
subtracting the cost of goods, shrank to 37.6 percent from 38.3
percent a year earlier amid the markdowns. Promotional e-mails from the Williams-Sonoma brand rose 31
percent during the quarter, Matt Nemer, an analyst at Wells
Fargo in San Francisco , wrote in an Aug. 20 note to clients. Nemer rates the shares market perform, the equivalent of
hold. Net income in the three months ended Aug. 4 advanced 13
percent to $48.9 million, or 49 cents a share, from $43.4
million, or 43 cents, a year earlier, the company said. The
average estimate of 26 analysts surveyed by Bloomberg was 47
cents. Revenue rose 12 percent $982.2 million. Analysts estimated
$939.4 million. Second-quarter sales at stores open at least a
year fell 0.4 percent at Williams-Sonoma stores. They gained 9.9
percent at Pottery Barn, and 17 percent at West Elm. To contact the reporter on this story:
Cotten Timberlake in 東京 at
[email protected] To contact the editor responsible for this story:
Robin Ajello at
[email protected] | 2013 | williams-sonoma-profit-tops-estimates |
California Authorized to Hold Carbon Auctions, Judge Says | By Karen Gullo | 2013-08-28T22:30:05Z | http://www.bloomberg.com/news/2013-08-28/california-authorized-to-hold-carbon-auctions-judge-says.html
California ’s environmental
regulators are authorized to auction carbon allowances under a
cap-and-trade program aimed at reducing pollution, a state judge
tentatively ruled in a Chamber of Commerce lawsuit challenging
the sales. Judge Timothy Frawley in Sacramento issued a ruling today
that California lawmakers gave the state’s Air Resources Board
the authority to choose a method for distributing carbon
allowances when they passed the state’s 2006 global warming act,
known as AB 32. “At the time AB 32 was enacted, both auctioning and free
distribution were widely recognized methods of distributing
allowances,” he said in a provisional ruling. “In delegating
to ARB the authority to ‘design’ the ‘distribution of emissions
allowances,’ the Legislature delegated to ARB the choice of
distribution method.” The California Chamber of Commerce alleged in a complaint
filed last year that the board lacks authority to auction carbon
allowances, which it says is paramount to an invalid tax or
unconstitutional fee that would cost taxpayers $70 billion. Frawley heard arguments today on the chamber’s claims that
the sale of carbon allowances violates the state’s Proposition
13, which requires that efforts to increase taxes to raise
revenue be passed by a two-thirds super-majority vote of the
legislature. He didn’t issue a ruling today. Under California’s first-in-the-nation economy-wide cap-and-trade program, the state’s Air Resources Board sets a
maximum for carbon emissions from power generators, oil
refineries and other industrial plants and cuts that limit
gradually to achieve a reduction of about 15 percent by 2020. If a business can’t make the required reductions, it can
buy emissions permits, called allowances, in auctions overseen
by the board or from other companies. They can also purchase
offset credits | 8 | 28 | 35f06baaabb2d5209a3df79305170ddf478f25f4 | portion of their pollution. The case is California Chamber of Commerce v. Air
Resources Board, 34-2012-80001313, California Superior Court
( Sacramento ). To contact the reporter on this story:
Karen Gullo in San Francisco at
[email protected] To contact the editor responsible for this story:
Michael Hytha at
[email protected] | 2013 | california-authorized-to-hold-carbon-auctions-judge-says |
Bourbon First-Half Ebit Rises 44% Amid Growth in Vessel Demand | By Tara Patel | 2013-08-28T04:51:50Z | http://www.bloomberg.com/news/2013-08-28/bourbon-first-half-ebit-rises-44-amid-growth-in-vessel-demand.html | 8 | 28 | 54d834384c271726982fd3c8cba3c699d23f45bd | Bourbon SA (GBB) , owner of the biggest
fleet of supply and crew ships for the oil industry, reported a
44 percent increase in earnings before interest and taxes as day
rates climbed amid rising demand from offshore projects. First-half Ebit climbed to 92.1 million euros ($123.3
million) from a year earlier, the Paris-based company said in a
statement. Net income dropped 15 percent to 14.4 million euros
because of currency exchange losses and higher taxes, it said. “Robust investments in exploration and production by oil
and gas clients continue to stimulate demand for offshore
vessels,” Chief Executive Officer Christian Lefevre said on a
conference call with reporters. Demand for large offshore
vessels “continues to increase.” Bourbon agreed earlier this year to sell and lease back 51
vessels to China ’s ICBC Financial Leasing for as much as $1.5
billion under a deal aimed at lowering borrowings. A transaction
for the first nine vessels has now been signed and the rest of
the vessels will be sold within 10 months, Bourbon said today,
allowing “rapid debt reduction.” Fleet Sales The plan is the first phase of one that could see the
company selling as much as 30 percent of the supply vessel fleet
for as much as $2.5 billion. Under a $2 billion expansion plan,
Bourbon planned to operate 600 owned and chartered ships by
2015, up from 458 at the end of last year. The company plans to sell 24 vessels within the next two
months for about $700 million, Lefevre said on the call.
Spending in the first half pushed up net debt to 2.19 billion
euros at the end of June from 2.06 billion euros at the end of
2012, he said. The shipowner has sought diversification of financing away
from French banks and could borrow from the financial market by
2015, Chief Financial Officer Laurent Renard has said. Bourbon is sticking to a sales-growth target for 2015 and
aims for positive cash flow this year and through 2015, Lefevre
said on the call. The average daily rate at which Bourbon rents vessels
excluding crewboats rose 5.9 percent in the latest six-month
period compared with last year, Bourbon said. To contact the reporter on this story:
Tara Patel in Paris at
[email protected] To contact the editor responsible for this story:
Will Kennedy at
[email protected] | 2013 | bourbon-first-half-ebit-rises-44-amid-growth-in-vessel-demand |
Brent Crude May Spike to $150 on Syria Spillover, SocGen Says | By Ramsey Al-Rikabi | 2013-08-28T03:37:49Z | http://www.bloomberg.com/news/2013-08-28/brent-crude-may-spike-to-150-on-syria-spillover-socgen-says.html | 8 | 28 | 0283421e9bc081a82537bcab3af1235f195e1a2d | Brent crude may “spike briefly” to
$150 a barrel if a U.S.-led attack on Syria sparks further
conflict in the Middle East and leads to supply disruptions,
Societe Generale SA (GLE) said in a report e-mailed today. Military action against the regime of Syrian President
Bashar al-Assad is likely within the next week, Michael Wittner ,
the bank’s New York-based head of oil market research, said in
the report. Brent, the price benchmark for more than half the
world’s crude, may rise to as much as $125 a barrel “in the
coming days” in anticipation or event of a strike, the bank
said. A spike to $150 is possible if a widening conflict halts
output in Iraq or other Mideast producers. “The concern is that an attack on Syria will reverberate
through the region, increasing the spillover into other
countries and possibly resulting in a larger supply disruption
elsewhere,” Wittner said in the Aug. 27 report. “Our big worry
is Iraq.” Brent for October settlement surged as much as $2.87, or
2.5 percent, to $117.23 a barrel on the London-based ICE Futures
Europe exchange after settling yesterday at the highest since
Feb. 25. West Texas Intermediate crude rose $2.58 to $111.59 a
barrel on the New York Mercantile Exchange, the highest intraday
price since May 2011. A potential loss of 500,000 barrels to 2 million barrels a
day of production in the region could be met by spare capacity
in Saudi Arabia, according to the bank. “The Saudis could handle most likely scenarios, but the
markets will look at the shrinking spare capacity that remains
after any disruption is made up, and that would be bullish,”
Wittner said in the report. U.S. President Barack Obama ’s administration is working
with allies including the U.K. and France to agree on limited
action against Syria after concluding that Assad’s regime used
chemical weapons against civilians. To contact the reporter on this story:
Ramsey Al-Rikabi in Singapore at
[email protected] To contact the editor responsible for this story:
Alexander Kwiatkowski at
[email protected] | 2013 | brent-crude-may-spike-to-150-on-syria-spillover-socgen-says |
China Asks U.S. Not to Meddle in Hong Kong Affairs, Song Says | By Simon Lee | 2013-08-28T02:59:19Z | http://www.bloomberg.com/news/2013-08-28/china-asks-u-s-not-to-meddle-in-hong-kong-affairs-song-says.html | 8 | 28 | 9f6acc3ed3cea6d6f488aa1a7ed71132d006ed8e | China is “firmly opposed” to
foreign powers meddling in Hong Kong’s affairs and the city’s
political reform is an internal issue, Commissioner Song Zhe of
China’s Foreign Ministry in Hong Kong told U.S. Consul-General
Clifford Hart in a meeting, according to a release on the
ministry’s website. China hopes the U.S. envoy in Hong Kong won’t conduct
activities that are inappropriate for its status and won’t do
things that would hurt Hong Kong’s prosperity and affect China-U.S. relationship, according to the statement. To contact the reporter on this story:
Simon Lee in Hong Kong at
[email protected] To contact the editor responsible for this story:
Kelvin Wong at
[email protected] | 2013 | china-asks-u-s-not-to-meddle-in-hong-kong-affairs-song-says |
Tocqueville Is Top Gold Fund Amid Plunge: Riskless Return | By Charles Stein and Debarati Roy | 2013-08-28T04:00:01Z | http://www.bloomberg.com/news/2013-08-28/tocqueville-is-top-gold-fund-amid-plunge-riskless-return.html | 8 | 28 | 05c7a9bf403c4f2fa2006f80967f74d0 | As bullion went from a rally to bear market over the past five years, leaving most gold funds with losses, Tocqueville Asset Management LP’s John Hathaway made money by picking promising mining stocks early. Hathaway’s $1.4 billion Tocqueville Gold Fund (TGLDX) gained 0.7 percent in the past five years when adjusted for price swings, the best among 15 U.S.-based mutual funds that invest in precious metals and mining companies, according to the BLOOMBERG RISKLESS RETURN RANKING. The fund produced the highest absolute returns in the group with the second-lowest volatility and was one of just four funds to make money over the period, according to the data. Gold’s slump from a record two years ago has undone gains for many asset managers who profited as the metal surged 70 percent from 2008 to mid-2011, and has even hurt investors that have the ability to hedge, such as billionaire John Paulson . Hathaway and his team, who meet executives at two to three companies every day and on average travel 100,000 miles a year to visit mines all over the world, beat rivals by getting ahead of other investors in picking stocks such as Osisko Mining Corp. and Torex Gold Resources Inc. “We identify the more prospective companies relatively early,” Hathaway said in a telephone interview from his office in New York . “We spend a lot of time analyzing companies and meeting with them before making an investment.” The risk-adjusted return is calculated by dividing total return by volatility, or the degree of daily price-swing variation, giving a measure of income per unit of risk. The returns are not annualized. First Eagle The $1.8 billion First Eagle Gold Fund (SGGDX) was No. 2 in the risk-adjusted ranking at 0.2 percent, combining the third-highest absolute return and the lowest volatility in the group in the five years ended Aug. 26. The $897 million Van Eck International Investors Gold Fund (INIVX) ranked third. The managers of the Tocqueville Fund seek companies with mining projects in stable jurisdictions, to reduce risks in their portfolio. They also don’t trade their stocks very frequently. The turnover ratio of the fund, a gauge of how much the holdings change in a year, was 17 percent, according to the firm’s website. That compares with a ratio averaging 68 percent for all U.S. equity funds, according to data compiled by Morningstar Inc. The Gold ETF Volatility Index has surged 66 percent this year, signaling that traders continue to expect the investment to be plagued with wild swings. Gold slumped into a bear market in June with the biggest two-day drop in more than three decades. Gold prices have plunged 16 percent this year, heading for the worst annual loss since 1997. Paulson, Soros The rout spurred losses for Paulson, whose gold fund tumbled 59 percent through July, according to an update sent to investors. Paulson’s gold fund climbed 35 percent in its first year of inception in 2010, slumped 11 percent in 2011, and fell 25 percent in 2012. Hathaway’s Tocqueville fund has fared better. The fund rose 53 percent in 2010, then fell 16 percent in 2011 and declined 8.7 percent in 2012. So far this year, it declined 30 percent on an absolute basis through Aug. 26, as the 17-member NYSE Arca Gold BUGS Index of gold-mining companies tumbled 38 percent. ‘Inextricably Linked’ “The equities’ performance is inextricably linked to gold prices,” Hathaway said. “You could talk about all things that analysts talk about but finally when gold prices fall, the mining companies cannot do well.” Hathaway, 72, has run the Tocqueville Fund since it started in June 1998. The fund is owned by Tocqueville Asset Management, a money management-firm named after 19th-century French political thinker Alexis de Tocqueville, best known for his writings on American democracy. The Tocqueville Fund returned 13 percent a year from inception through July 31, outpacing the 3.6 gain in the Philadelphia Stock Exchange Gold and Silver Index and the 4.6 percent annual increase in the Standard & Poor’s 500 Index. The fund’s largest holding is physical gold, at about 11 percent of assets as of July 31, according to data posted on the firm’s website. Hathaway said the team scouts out early-stage companies with promising exploration projects and buys shares before they become widely recognized by analysts and other investors. The average weighted capitalization of companies held by the fund is $3.7 billion, half the $7.4 billion for the 14 competing funds, according to data compiled by Bloomberg. Osisko Mining The fund bought Osisko Mining (OSK) , which accounted for 3.5 percent of Tocqueville’s holdings as of July 31, in 2006 when the shares were trading at 50 cents. The stock has since surged almost 11-fold to $5.44 as of August 27. Osisko, based in Toronto, was founded in 1998 and began production in 2011. “This was one of the companies which we invested in at a very early stage,” Hathaway said. “The management delivered on their exploration idea.” Hathaway’s fund bought shares of Toronto-based Torex in 2010 when the company acquired the Morelos Gold Project, which has since become its flagship exploration project. Since the first quarter of 2010, when the Tocqueville fund first bought shares of Torex, the stock has surged 72 percent. Many of Hathaway’s picks, including Andean Resources Ltd. and European Goldfields Ltd., were acquired by larger miners, creating some of the biggest gains for the mutual fund over the past five years. Andean Resources Andean Resources, a Perth-based miner, agreed to be bought in September 2010 for $3.5 billion by Goldcorp Inc. (G) of Vancouver . The bid topped a rival offer from another Vancouver firm, Eldorado Gold Corp. (ELD) Both firms coveted Andean’s Cerro Negro project in Argentina. Andean was the second-biggest contributor to the fund’s performance over the past five years, according to data compiled by Bloomberg, topped only by Randgold Resources Ltd. (RRS) of the Channel Islands . Another Hathaway holding, European Goldfields, agreed to be acquired for $2.4 billion in December 2011 by Eldorado. The price was 31 percent more than the stock’s closing price two weeks earlier when European Goldfields said it had received takeover offers. The fund has also put 4.7 percent of assets in Franco-Nevada Corp. (FNV) , a Toronto-based company that collects mining royalties. Hathaway, who has owned shares of Franco-Nevada for 10 years, likes the company’s ability to generate cash flow and the fact that it is not capital-intensive. The stock, which has more than doubled over five years, was the sixth-biggest contributor to the fund’s results over that stretch. “In the long run it’s about making the right choice and I would think gold equities are becoming increasing attractive now,” Scott Gardner , who helps manage $400 million at Verdmont Capital SA in Panama City, said in a telephone interview. Roller Coaster Hathaway has run the fund at a time when gold went on a roller-coaster ride. It climbed from an average of $872.25 an ounce in 2008 to an all-time high in 2011, driven by fears that the extraordinary stimulus provided by central banks around the world would lead to inflation and the loss of confidence in major currencies. The precious metal jumped 70 percent from the end of December 2008 to June 2011 as the Fed bought more than $2 trillion in bonds to bolster the economy. Gold prices, which rose to a record $1,921.15 an ounce in September 2011, slumped to $1,180.50 an ounce in June as some investors lost faith in the precious metal as a store of value and amid concern that the Federal Reserve will slow the pace of the stimulus. Prices have recovered since then on physical demand from Asia. In his letters to investors, Hathaway regularly makes the case that gold has a bright future. ‘Sound’ Thesis “We believe the premise for investing in gold and gold mining shares remains sound,” he wrote in an April 30 letter . “Paper currencies appear to us to be more at risk of losing their purchasing power than at any time since the commencement of the gold bull market in 1999.” The collapse in gold has hurt mining companies including Barrick Gold Corp. (ABX) , the world’s largest producer of the metal, and Goldcorp, the biggest producer by market value. Gold mining companies have announced at least $26 billion of writedowns in the past two months. Jamie Sokalsky, chief executive officer of Barrick, said Aug. 1 that valuations for gold-mining companies probably “can’t get much lower.” Even after gold’s decline, producers are trading close to their cheapest relative to the metal in at least 29 years, according to data compiled by Bloomberg. Gold has rebounded 20 percent from a 34-month low in June as lower prices boosted demand for jewelry, coins and bars. “You have corrections in every market and now it looks as if it’s been overdone on the downside and gold is starting to find its footing,” Hathaway said in the interview. “I continue to remain bullish on gold.” To contact the reporters on this story: Charles Stein in Boston at [email protected] ; Debarati Roy in New York at [email protected] To contact the editor responsible for this story: Christian Baumgaertel at [email protected] | 2013 | ocqueville-is-top-gold-fund-amid-plunge-riskless-return |
Gulf Oils Strengthen Amid Concern Conflict May Threaten Supply | By Dan Murtaugh | 2013-08-28T15:44:40Z | http://www.bloomberg.com/news/2013-08-28/gulf-oils-strengthen-amid-concern-conflict-may-threaten-supply.html | 8 | 28 | cbfdc8b8f2af3b73fe3438667512e6417df4956d | Light Louisiana Sweet and other Gulf
of Mexico crudes strengthened relative to West Texas
Intermediate on concerns that the conflict in Syria might spread
and threaten waterborne oil supplies. The U.S., France and Britain moved closer to a military
strike as they laid the legal groundwork to justify action over
Syria’s alleged use of chemical weapons. Brent, the European
benchmark, may advance to $150 a barrel if supplies are
disrupted, Societe Generale SA (GLE) said. Brent strengthened to a premium of as much as $6.17 a
barrel more than WTI, the highest intraday level in a week. LLS
and other gulf crudes compete with foreign oils priced against
Brent for space in U.S. refineries. LLS, the light, sweet benchmark on the Gulf Coast ,
strengthened by 45 cents to a premium of $3.25 a barrel over WTI
at 9:25 a.m., according to data compiled by Bloomberg. Heavy
Louisiana Sweet gained 25 cents to a premium of $3.15. LLS also strengthened against Mexican Maya crude, the
heavy, sour benchmark on the Gulf Coast, gaining 55 cents to
$10.29 a barrel, the highest level since Aug. 19. The LLS-Maya
differential is an indication of how profitable heavy Gulf Coast
refineries are. Mars Blend, a medium, sour crude from the Gulf,
strengthened by 30 cents versus WTI to a discount of $2.40 a
barrel. Poseidon crude narrowed its discount by 60 cents to
$3.40 a barrel. Crude from the Southern Green Canyon strengthened by 25
cents to $3.90 a barrel less than WTI. Thunder Horse crude was
unchanged at 10 cents a barrel more than WTI. To contact the reporter on this story:
Dan Murtaugh in Houston at
[email protected] To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2013 | gulf-oils-strengthen-amid-concern-conflict-may-threaten-supply |
Ethanol’s Discount to Gasoline Widens on Middle East Concern | By Mario Parker | 2013-08-28T20:59:49Z | http://www.bloomberg.com/news/2013-08-28/ethanol-s-discount-to-gasoline-widens-on-middle-east-concern.html | 8 | 28 | 252a4850997449cba5de04d4f7fa7c32 | Ethanol’s discount to gasoline
widened as the motor fuel surged on concern the U.S. may strike
Syria and disrupt fuel supplies. The spread expanded by 3.74 cents to 59.85 cents a gallon
as the motor fuel rose 2 percent atop a gain of 2.8 percent
yesterday. Both fuels have risen five times in the past six
days. An Energy Information Administration report showed ethanol
output last week fell 2.8 percent to 820,000 barrels a day, the
lowest level since March 29. Supply in the so-called PADD 2
region, which covers the Midwest, dropped to the lowest on
record. “Ethanol’s really been climbing,” said Will Babler, a
broker at Atten Babler Risk Management LLC in Galena, Illinois .
“It’s baked in. That may be the disconnect you see.” Denatured ethanol for September delivery rose 2.3 cents, or
0.9 percent, to $2.496 a gallon on the Chicago Board of Trade.
Futures, which have gained 14 percent this year, are headed for
the first monthly gain since May and the largest since January. Gasoline for September delivery increased 6.04 cents, or 2
percent, to $3.0945 a gallon on the New York Mercantile
Exchange . The contract covers reformulated gasoline, made to be
blended with ethanol before delivery to filling stations. “The significant slowdown in production and the large draw
in PADD 2 inventories seem to support recent speculation that
many ethanol plants are shutting down for summer maintenance,”
said Michael Breitenbach, a broker and director of research at
Blue Ocean Brokerage LLC in New York . Stockpiles, Imports Overall ethanol stockpiles fell 1.4 percent to 16.3 million
barrels, the lowest level since July 5, data from the Energy
Department’s statistical arm show. Imports of the biofuel sank 79 percent to 4,000 barrels a
day, a third week of declines and the lowest since June 28, when
the U.S. made no foreign purchases of the additive. Ethanol is made from corn in the U.S. One bushel of the
grain distills into about 2.75 gallons of the renewable fuel. Corn for September delivery added 4.5 cents, or 0.9
percent, to $5.0425 a bushel in Chicago . The more actively
traded December contract slumped 5.5 cents to $4.8075. The corn crush spread, or the difference between ethanol
and the corn needed to make it, rose to 66.2 cents a gallon, the
highest level this year, from 65.6 cents yesterday. A 2007 energy law requires refiners to use 13.8 billion
gallons of ethanol this year and 14.4 billion in 2014.
Compliance is tracked by Renewable Identification Numbers,
certificates attached to each gallon of ethanol that are
submitted to the government each year and that also can be
traded among companies. RINs Decline Corn-based ethanol RINs decreased 2 cents to 68 cents, the
cheapest since Aug. 9, data compiled by Bloomberg show. Advanced
RINs, which cover biodiesel and Brazilian sugarcane-based
ethanol, fell 3 cents to 75 cents. Ethanol refinery input , a measure of demand, was little
changed, according to the EIA. In cash market trading, ethanol rose 8 cents to $2.80 a
gallon in New York, 6.5 cents to $2.715 in Chicago, 7 cents to
$2.81 on the Gulf Coast and 2 cents to $2.85 on the West Coast,
data compiled by Bloomberg show. Chicago’s discount to New York Harbor gained 1.5 cents to
8.5 cents, while the West Coast’s premium to the Gulf slid 5
cents to 4 cents. To contact the reporter on this story:
Mario Parker in Chicago at
[email protected] To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2013 | ethanol-s-discount-to-gasoline-widens-on-middle-east-concern |
Natural Gas Advances as Contract Expires Amid Hot Weather View | By Christine Buurma | 2013-08-28T19:41:25Z | http://www.bloomberg.com/news/2013-08-28/natural-gas-advances-as-contract-expires-amid-hot-weather-view.html | 8 | 28 | 8e5a65afb8784b408a04a56b571d61ae | Natural gas futures gained for a
third day in New York, climbing as the September contract
expired amid forecasts for hotter-than-normal weather that would
spur power demand before temperatures moderate next week. Gas climbed 0.9 percent as Commodity Weather Group LLC in
Bethesda, Maryland , predicted above-normal temperatures in most
of the contiguous U.S. through Sept. 1, following by average or
cooler-than-usual weather in the eastern half of the U.S.
through Sept. 11. “People holding short positions are exiting them as the
September contract expires and that’s why we’re seeing the
front-month contract moving higher than the rest of the curve,”
said Aaron Calder, an analyst at Gelber & Associates in Houston.
“We have a heat wave in the Northeast, but it’s unclear how
mild the weather is going to be after that.” Natural gas for September delivery rose 3.3 cents to settle
at $3.567 per million British thermal units on the New York
Mercantile Exchange. Trading volume was 27 percent below the
100-day average at 2:36 p.m. Prices have climbed 6.4 percent
this year. The more actively traded October contract advanced 0.9 cent
to $3.582 per million Btu. October gas traded 35.3 cents below the January contract,
compared with 36.3 cents yesterday. November $2.90 puts were the most active options in
electronic trading. They were 0.1 cent lower at 0.7 cent per
million Btu on volume of 981 at 3:03 p.m. Puts accounted for 48
percent of trading volume. Implied volatility for October at-the-money options was 31.27 percent at 3:15 p.m., compared with
31.71 percent yesterday. Chicago High The high in Chicago on Aug. 31 may be 89 degrees Fahrenheit
(32 Celsius), 9 higher than average, according to AccuWeather
Inc. The high in New York may be 86 degrees Fahrenheit, 6 more
than usual. Power generation accounts for 32 percent of U.S. gas
demand, according to the Energy Information Administration, the
Energy Department’s statistical arm. “The bullish case for the gas market is the hot weather
we’re continuing to see in the eastern U.S.,” said Tom Saal,
senior vice president of energy trading at FCStone Latin America
LLC in Miami. “Traders are also looking at the fact that the
peak of hurricane season is still around the corner.” Tropical Weather Showers and thunderstorms about 1,400 miles (2,253
kilometers) east of the Lesser Antilles have a 20 percent chance
of becoming a tropical cyclone during the next five days, the
National Hurricane Center said in a 2 p.m. outlook. Another
system over West Africa also has a 20 percent chance of
strengthening to a tropical cyclone during the same period. The Gulf of Mexico accounts for 5.7 percent of U.S. gas
production, EIA data show. Sept. 10 is the statistical peak of
the Atlantic hurricane season, according to the National
Hurricane Center. EIA data scheduled for release tomorrow may show gas
inventories rose by 62 billion cubic feet in the week ended Aug.
23, according to the median of 19 analyst estimates compiled by
Bloomberg. The five-year average increase for the period is 66
billion. Supplies climbed by 64 billion in the same seven days
last year. Stockpiles totaled 3.063 trillion cubic feet in the week
ended Aug. 16, or 1.5 percent above the five-year average,
according to the EIA. Inventories were 7.2 percent below year-earlier supplies. Gas Production The U.S. lowered its 2013 natural gas production estimate
to 69.89 billion cubic feet a day from last month’s forecast of
69.96 billion, the EIA said Aug. 6 in in its Short-Term Energy
Outlook. Output may rise 1 percent from a year ago to a record
as onshore supplies climb. Inventories may reach 3.8 trillion cubic feet at the end of
October, about 130 billion below last year’s level for the time
of year, the EIA said. The number of rigs drilling for natural gas in the U.S.
last week fell by one to 387 last week, data from Baker Hughes
Inc. in Houston show. The total is down 10 percent this year. The U.S. met 87 percent of its own energy needs in the
first five months of 2013, on pace to be the highest annual rate
since 1986, according to EIA data. To contact the reporter on this story:
Christine Buurma in New York at
[email protected] ; To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2013 | natural-gas-advances-as-contract-expires-amid-hot-weather-view |
WTI Crude Rises to Two-Year High on Syrian Tension | By Mark Shenk | 2013-08-28T19:30:40Z | http://www.bloomberg.com/news/2013-08-28/wti-crude-rises-to-two-year-high-on-syria-socgen-sees-1.html | 8 | 28 | 29d776cb1b564c1cacd6dc32cbf0553f | West Texas Intermediate crude surged
to the highest level since May 2011 on concern that the conflict
in Syria will spread and threaten oil supplies from the Middle
East . Brent climbed to a six-month high in London. Futures rose 1 percent in New York while gasoline advanced
for the fifth time in six days. The U.S., France and Britain
moved closer to a military strike against Syria as they laid the
legal groundwork to justify action after the alleged use of
chemical weapons. Brent may advance to $150 a barrel if
shipments are disrupted, Societe Generale SA (GLE) said. Libya said
output may have dropped below 200,000 barrels a day, the least
since the 2011 uprising against Muammar Qaddafi . “This market is reflecting anxiety about the Middle
East,” said Adam Wise, who helps manage a $6 billion oil and
gas bond portfolio as a managing director at Manulife Asset
Management in Boston . “As long as tension escalates in the
region, specifically in Syria and Iran, you can expect prices to
move higher. More news-driven price spikes are on the table.” WTI crude for October delivery rose $1.09 to $110.10 a
barrel on the New York Mercantile Exchange , the highest
settlement since May 3, 2011. Trading was 9.8 percent above the
100-day average at 2:40 p.m. Prices are up 20 percent this year. Brent Advances Brent for October settlement advanced $2.25, or 2 percent,
to $116.61 a barrel on the London-based ICE Futures Europe
exchange. It was the highest close since Feb. 19. Volume was 56
percent above the 100-day average. The European benchmark crude
traded at a $6.51 premium to WTI, the most since June 21. Gasoline for September delivery increased 6.04 cents, or 2
percent, to $3.0945 a gallon on the Nymex, adding to yesterday’s
2.8 percent gain. Crude and U.S. equities both rose after moving in opposite
directions yesterday, when WTI rallied 2.9 percent as the
Standard & Poor’s 500 Index (SPX) slid 1.6 percent. The 4.5
percentage-point divergence was the widest since November 2011. WTI call options surged as futures rallied. The implied
volatility of October calls protecting against a 10 percent rise
in futures prices jumping to 35 percent at 2:36 p.m. from 21.7
on Aug. 26 and 28.9 yesterday. U.S. officials planning potential military strikes on Syria
aren’t limited to a one-day operation, an administration
official said, as the United Nations Security Council ’s
permanent members considered a resolution condemning the
suspected attack. The U.S. and its allies are still working to
define goals for a military strike on Syria, said the official,
who asked not to be identified discussing war-planning efforts. ‘No Telling’ “The market is feeding on itself, headline by headline,”
said Stephen Schork , president of the Schork Group Inc., an
energy advisory company in Villanova, Pennsylvania. “Prices
rose to $115 on the unrest in Libya two years ago and to $110 on
Iran’s nuclear program . There’s no telling when this rally will
flame out.” Brent may “spike briefly” to $150 a barrel if the
conflict in Syria spreads to other parts of the Middle East,
causing supply cuts, Societe Generale said in a report e-mailed
today. The contract traded at $147.50 on July 11, 2008, the
highest intraday price on record. “The concern is that an attack on Syria will reverberate
through the region, increasing the spillover into other
countries and possibly resulting in a larger supply disruption
elsewhere,” said Michael Wittner , Societe Generale’s head of
oil market research in New York said in the report. Even if
flows aren’t cut oil may climb to $125 in coming days, he said. Middle East The Middle East accounted for 35 percent of global oil
output in the first quarter of this year, according to data from
the International Energy Agency . WTI tumbled 9.9 percent in May 2011 as the North Atlantic
Treaty Organization bombarded Libya and U.S. forces killed Osama bin Laden . The contract tumbled 15 percent in March 2003 as an
U.S.-led coalition invaded Iraq with the aim of toppling Iraqi
President Saddam Hussein . “We could easily see significant selling once the first
bombs drop,” Schork said. Libya’s oil production fell as protests over pay and
allegations of corruption spread to fields operated by Eni SpA (ENI)
and Repsol SA, according to officials at National Oil Corp. The
North African country was pumping 1.4 million barrels a day in
March, according to a Bloomberg survey. Geopolitical Risk “Geopolitical risk is driving the market higher,” said
Gene McGillian , an analyst and broker at Tradition Energy in
Stamford, Connecticut. “The escalation in Syria is coming after
Libyan production has tumbled. The bulls seem intent on driving
WTI close to $115.” A technical indicator shows Brent futures may be rising too
quickly for further gains to be sustainable. The 14-day relative
strength index yesterday surged above 70 for the first time
since February, signaling the market is overbought, according to
data compiled by Bloomberg. Today’s reading exceeded 75. The Energy Information Administration said U.S. crude
stockpiles rose 2.99 million barrels to 362 million last week. “Absent the Middle Eastern news, we would be moving
lower,” Wise said. “This is a very bearish report, but the
market’s ignoring it.” U.S. crude production increased 1.2 percent to 7.61 million
barrels a day, the highest level since 1989, according to the
EIA, the Energy Department’s statistical unit. Output has surged
as the combination of horizontal drilling and hydraulic
fracturing, or fracking, has unlocked supplies trapped in shale
formations in the central part of the country. Hedge funds cut bullish bets on WTI in the week ended Aug.
20, data from the Commodity Futures Trading Commission showed on
Aug. 23. Funds and other speculators boosted bullish bets on
Brent in the same period, data from the ICE Futures Europe
showed on Aug. 26. Electronic trading volume on the Nymex was 591,882
contracts as of 2:35 p.m. It totaled 700,944 contracts
yesterday. Open interest was 1.86 million contracts. To contact the reporters on this story:
Mark Shenk in New York at
[email protected] To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2013 | wti-crude-rises-to-two-year-high-on-syria-socgen-sees-1 |
Rupee Dip Risks Economic Nosedive in India, Billionaire Says | By Adi Narayan | 2013-08-29T04:56:30Z | http://www.bloomberg.com/news/2013-08-28/rupee-plunge-risks-economic-nosedive-for-india-billionaire-says.html
India needs to immediately use its foreign exchange reserves to arrest the rupee’s record plunge as the weakening currency has the potential to send the economy into a “nosedive,” billionaire Adi Godrej said. “The whole economy will suffer dramatically | 8 | 28 | 9515e68548904890a36697de9a5e48bd | 2013 | rupee-plunge-risks-economic-nosedive-for-india-billionaire-says |
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Banks, Utilities Seen as Targets of Syrian Cyber-Attacks | By Michael Riley and Chris Strohm | 2013-08-29T04:00:01Z | http://www.bloomberg.com/news/2013-08-28/banks-utilities-seen-as-targets-of-syrian-cyber-attacks.html
The U.S. is planning for a possible wave of computer attacks against companies by hackers connected to Syria or Iran in retaliation for any military strike against the government of Bashar al-Assad, according to a person familiar with the planning. The National Security Agency has tapped hackers’ computers in the Middle East to assess their ability to disrupt power grids, financial systems or other critical infrastructure, according to another person familiar with those operations. The preparations, part of wide-ranging plans by the Pentagon, took on added urgency after this week’s attack on the New York Times’ website by the Syrian Electronic Army, a pro-Assad hacker group. That group previously hacked the Associated Press ’s Twitter Inc. account to falsely report an explosion near the White House, triggering a drop in the Standard & Poor’s 500 Index that temporarily wiped out $136 billion in market value. “Welcome to the new world,” Michael Chertoff , former secretary of the Department of Homeland Security , said in an interview. “The line between national security and private security is eroding,” said Chertoff, founder of a Washington consulting company. “It is a reasonable concern to be prepared for the possibility of some kind of retaliation | 8 | 28 | 703b34fb606c40a18185d3999e15111f | 2013 | banks-utilities-seen-as-targets-of-syrian-cyber-attacks |
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Israel Bolsters Defenses Amid Talk of US Syria Strike | By Calev Ben-David | 2013-08-28T14:02:09Z | http://www.bloomberg.com/news/2013-08-28/netanyahu-consults-with-security-ministers-as-syria-strike-looms.html | 8 | 28 | dd6d61d2e114448b7f92660d20096b8b56ad57ad | (Corrects to Israel in seventh paragraph.) Israel’s military bolstered its
defenses near the northern border, media reported, and Prime
Minister Benjamin Netanyahu warned against any retaliatory
attack on his country, amid signs the U.S. is preparing to
strike Syria over its alleged use of chemical weapons. With talk of war escalating, the prime minister tried to
reassure Israelis that they were in safe hands. “There is no
reason not to follow routine,” Netanyahu said in an e-mailed
statement today. “At the same time, we are preparing for any
scenario. The Israeli military is ready to protect the people of
Israel and to respond forcefully against any threat.” The army deployed a second Iron Dome missile defense system
outside the city of Haifa and put an Arrow missile defense
battery on alert for medium-range weapons including the Shihab
missile developed by Iran , the Ynet news site reported, without
saying where it got the information. Israel Radio reported that
cabinet ministers approved a limited reserves callup. Military
spokesmen said they were checking the reports. Both Syria and Lebanon, home to the Hezbollah militia
backing the Syrian government in its war against rebels, lie to
Israel’s north. According to some Syrian opposition groups, 1,300 people
died in an Aug. 21 chemical attack in the Ghouta area outside
Damascus. U.S. Secretary of State John Kerry denounced the
alleged assault as a “cowardly crime” requiring a response
against the Syrian government. Foreign Intervention It would be the first foreign military intervention against
Syrian President Bashar al-Assad since fighting broke out more
than two years ago, claiming more than 100,000 lives, according
to United Nations estimates. Iranian officials have said any Western attack on ally
Syria could result in reprisals targeting Israel. During the
first Gulf War in 1991, Iraqi leader Saddam Hussein fired Scud
missiles at the Jewish state after the U.S. attacked Iraq for
invading Kuwait . Defense Minister Moshe Ya’alon told a Tel Aviv conference
that Israel does not seek to interfere in the Syria conflict and
wants to maintain quiet on its borders, yet will respond to any
“provocation.” In recent years, Syria has avoided engaging the Israeli
military even when it was suspected of direct attacks on Syrian
targets, including a suspected nuclear site in 2007 and arms
convoys and facilities this year. To contact the reporter on this story:
Calev Ben-David in Jerusalem at
[email protected] To contact the editor responsible for this story:
Andrew J. Barden at
[email protected] | 2013 | netanyahu-consults-with-security-ministers-as-syria-strike-looms |
Westfield Group Funds From Operations Drop on Asset Sales | By Nichola Saminather | 2013-08-29T07:23:42Z | http://www.bloomberg.com/news/2013-08-28/westfield-group-funds-from-operations-drop-as-retail-trust-rises.html | 8 | 28 | 9c21698074bc47e4b1416aff9b3b7e80 | Westfield Group (WDC) , the world’s biggest
mall operator by assets, reported a 3 percent drop in first-half
funds from operations as A$4.9 billion ($4.4 billion) of asset
sales in 2012 and 2013 cut property income. Westfield Group’s funds from operations slid to A$729
million in the six months to June 30 from A$751.2 million a year
earlier, the Sydney-based company said in a statement to the
Australian stock exchange. That compared with a forecast of
A$729.4 million, based on the median of three analyst estimates
compiled by Bloomberg News. Westfield Group has been selling stakes in its malls to
investors and retaining management rights to boost income and
fund higher return activities including development. Australia’s
biggest publicly-traded property trust will boost investments
overseas, including in new markets, as growth at home slows, co-Chief Executive Officer Peter Lowy said in February. Westfield plans “to continue redeploying capital from
further joint ventures and non-core asset disposals,” Peter and
Steven Lowy, joint-CEOs of Westfield Group, said in today’s
statement. Westfield Group’s funds from operations equated to 33.1
cents a share, a 0.9 percent increase from a year earlier, as it
bought back 140.7 million shares since it announced its
repurchase program in February 2012. Global Operations Westfield Retail, which owns interests in its parent’s
Australian and New Zealand malls, reported first-half funds from
operations of A$300.5 million, or 9.93 cents a share, it said in
a separate statement. That compared with the A$297 million
median of three analyst estimates compiled by Bloomberg News . A
1.8 percent increase in comparable net operating income and the
completion of redevelopments contributed to the increase, it
said. Westfield Group shares slipped 0.7 percent to A$11.05 at
the close of trading in Sydney, while Westfield Retail shares
rose 0.3 percent to A$2.93. The S&P/ASX 200 index added 0.1
percent. Westfield Group’s management income rose 7 percent to A$64
million, as the assets it manages surged 10 percent to 67.9
billion, it said today. Net property income fell 5 percent to
A$975 million, it said. After adjusting for the divestments, net
property income was up 6 percent. Westfield Group’s comparable net income rose 4.3 percent in
the U.S., 1.8 percent in its Australia and New Zealand business
and 0.2 percent in the U.K., it said today. U.S. Project At Westfield London, the company is moving forward with an
expansion at the site, having received approval for more than
500,000 square feet (46,452 square meters) of additional space
and more than 1,500 apartments, Steven Lowy said today on an
analyst teleconference. In its World Trade Center redevelopment in New York
“demand for that center is absolutely unprecedented” with
potential tenants including international luxury and high street
retailers, and expectations for 400,000 visitors a day, Lowy
said on the call. Westfield formed a joint venture in July 2011
with the Port Authority of New York and New Jersey to redevelop
the center. In Brazil , the company continues to review opportunities
after dissolving its joint venture with the Almeida Junior
Family in April, Lowy said today. Westfield Group, which reported net income that fell 36
percent to A$514.8 million for the period, will pay a first-half
dividend of 25.5 Australian cents a share, it said today. Funds
from operations for the year to Dec. 31 are forecast to be 66.5
cents a share, it said. Westfield Retail (WRT) , which today reported net income of
A$402.1 million for the half, forecast full-year funds from
operations of 19.85 cents a share, which it will pay out in its
entirety. 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] | 2013 | westfield-group-funds-from-operations-drop-as-retail-trust-rises |
NZ Ministry Says Fonterra Whey Protein Couldn’t Cause Botulism | By Tracy Withers | 2013-08-28T04:51:23Z | http://www.bloomberg.com/news/2013-08-28/nz-ministry-says-fonterra-whey-protein-couldn-t-cause-botulism.html | 8 | 28 | d1a8d74fdca648584b9fe1ec193140631d19002b | Fonterra Cooperative Group Ltd., the
world’s largest dairy exporter, didn’t produce whey protein with
a bacterial contamination that could have caused botulism,
according to New Zealand ’s government. “The bacteria found in whey protein concentrate
manufactured by Fonterra is not clostridium botulinum,” Scott
Gallacher, acting director general of the Ministry of Primary
Industries, said today on a conference call. “It is therefore
not capable of producing botulism-causing toxins.” China , Fonterra’s largest milk powder customer, banned some
products this month after discovery of batches of whey protein
with a contamination that could cause botulism. The ministry
said in a statement at it undertook tests, using local and
overseas laboratories, on the whey protein after Fonterra
advised it Aug. 2 that there was a potential contamination of a
38 metric ton batch made at a North Island plant. The organism identified in the whey protein was clostridium
sporogenes, which doesn’t lead to any known food safety issue,
Gallacher said. Certain strains may be associated with food
spoilage, he said. Fonterra earlier called on the ministry to release the test
results citing speculation on the negative result. Trading in
Fonterra Shareholder’s Fund units was halted on the stock
exchange. To contact the reporter on this story:
Tracy Withers in Wellington at
[email protected] To contact the editor responsible for this story:
Matthew Brockett at
[email protected] | 2013 | nz-ministry-says-fonterra-whey-protein-couldn-t-cause-botulis |
Celtic Rallies to Join AC Milan in Champions League Group Stage | By Bob Bensch | 2013-08-28T23:00:53Z | http://www.bloomberg.com/news/2013-08-28/celtic-defeats-shakter-karagandy-in-champions-league-playoffs.html | 8 | 28 | 5be0510dee4048a2afb065247ca56582 | Celtic came from behind to beat
Shakter Karagandy 3-2 over two games and join AC Milan and 12
other former winners in the Champions League group stage. James Forrest’s stoppage-time goal last night capped a 3-0
home victory in Glasgow as Celtic overturned a 2-0 deficit from
the opener of the two-match playoff in Kazakhstan. “This is the greatest night of football in my life,”
Celtic manager Neil Lennon, who ran the length of the field to
join the celebration after Forrest scored, told Sky Sports. “I
have a huge feeling of relief and a huge feeling of pride.” The victory took Celtic into the 32-team group stage of
European soccer’s elite club competition for the second straight
season, alongside teams including defending champion Bayern
Munich, Barcelona and Manchester United. Kevin-Prince Boateng scored twice as AC Milan, a seven-time
European Cup winner, beat PSV Eindhoven 3-0 for a 4-1 series
victory. Zenit St. Petersburg, Viktoria Plzen and Real Sociedad
also won in the final round of playoff games to move into the
group stage. The 10 playoff winners join 22 automatic qualifiers
in today’s draw in Monaco . The victory for 1967 European champion Celtic denied
Shakter the chance to become the first team from Kazakhstan to
qualify for the group stage, where teams are guaranteed a
minimum of 8.6 million euros ($11.5 million) in payments from
tournament organizer UEFA. Shakter goalkeeper Aleksandr Mokin made three early saves
against Mikael Lustig, Anthony Stokes and Kris Commons to keep
the visitors in front. Celtic broke through in first-half
stoppage time as Commons scored with a swerving left-foot shot
from outside the area. Celtic’s Comeback The Scottish champion tied the series 2-2 three minutes
into the second half on Giorgos Samaras’s goal and almost took
the lead in the 61st minute as Stokes’s volley hit the crossbar. Shakter was twice denied moments later when Nikola
Vasiljevic’s shot was cleared off the line by Adam Matthews and
Sergei Khizhnickenko hit the bar. Celtic completed its comeback in stoppage time as Stokes
weaved through three defenders in the area and cut the ball back
for Forrest, who drilled a shot into the roof of the net. “It’s going to go down as one of the greatest nights at
Celtic Park,” Commons told Celtic’s website. “We needed to
score three goals and keep them out, and we did it the way we
had dreamt about it.” Milan Advances AC Milan took the lead in the ninth minute at the San Siro
in Italy as Boateng sent a shot from outside the penalty area
into the lower left corner. Mario Balotelli made it 2-0 in the
55th minute and Boateng closed the scoring with 13 minutes left. Zenit St. Petersburg beat Pacos Ferreira 4-2 in Russia to
reach the group stage for a fourth time. Danny scored two goals,
while Aleksandr Bukharov and Andrey Arshavin had one each, as
Zenit won 8-3 on aggregate. Viktoria Plzen booked its second trip to the group stage as
Stanislav Tecl’s third-minute goal secured a 1-0 win at Maribor
and a 4-1 series victory. Carlos Vela scored twice as Real
Sociedad advanced with its second straight 2-0 win against Lyon. The 32 teams will be split into four seeding pots for
today’s draw, using club’s co-efficients based on their European
results from the past five years and national team co-efficients. One team from each of the pots will be drawn to form
the eight groups of four, with teams from the same country
unable to be pooled together. 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] . | 2013 | celtic-defeats-shakter-karagandy-in-champions-league-playoffs |
Swedish Confidence Advances as Economic Recovery Gathers Speed | By Johan Carlstrom | 2013-08-28T07:11:17Z | http://www.bloomberg.com/news/2013-08-28/swedish-confidence-advances-as-economic-recovery-gathers-speed.html | 8 | 28 | c80df5e0a9424ffaf2606720d1df545da0e85691 | Swedish consumer confidence improved
for a third month in August, rising to the highest in two years,
as Europe emerged from a recession and the government signaled
more tax cuts. The consumer confidence index rose to 99.3 from a revised
98.3 the previous month, the Stockholm-based National Institute
of Economic Research said today. A manufacturing confidence
index rose jumped to 100.1 from a revised 94.9. “Consumers’ assessment of both their personal finances and
the Swedish economy is more positive than in July, and the Micro
Index indicates that households are more optimistic than normal
about their personal finances,” NIER said in a statement. The euro zone emerged from a record-long recession last
quarter, expanding for the first time since 2011, helping the
export-dependent Nordic economy. Sweden’s central bank last
month said it will keep its main lending rate at 1 percent until
the second half next year, while Prime Minister Fredrik Reinfeldt this month called for a fifth round of income tax cuts
to support demand. To contact the reporter on this story:
Johan Carlstrom in Stockholm at
[email protected] . To contact the editor responsible for this story:
Jonas Bergman in Oslo at
[email protected] | 2013 | swedish-confidence-advances-as-economic-recovery-gathers-speed |
Fed Gains Nothing With Taper Delay | By Caroline Baum | 2013-08-28T19:59:20Z | http://www.bloomberg.com/news/2013-08-28/fed-gains-nothing-with-taper-delay.html
The best argument I've heard for the Federal Reserve to begin reducing the size of its monthly asset purchases (otherwise known as quantitative easing) at its Sept. 17-18 meeting is to get it over with. That's the gist of what Vince Reinhart, chief U.S. economist at Morgan Stanley, said in a research note to clients this week. "Fed officials have already paid a high price (in terms of market volatility) for expressing their desire to see the back of QE. It is their responsibility to explain how they will extricate themselves from the program." Tapering talk has already sent 10-year note yields up 120 basis points. Almost the entire increase has been in the real yield, not in inflation expectations. Long-term interest rates aren't about to retreat if the Fed delays the inevitable until October or December. So if rising long-term rates have policy makers tied in knots, doing nothing buys them time, not yield relief. The real 10-year yield (from the 10-year inflation-indexed Treasury note) is 0.6 percent. JPMorgan Chase economist Jim Glassman says that before the recession and introduction of the Fed's unconventional policies, real long-term rates averaged 2 percent to 2.5 percent. The implied five-year forward real rate | 8 | 28 | 62697b7d43f04fff9012e6a8129efb9c | 2013 | fed-gains-nothing-with-taper-delay |
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Potential Autism Trigger Found in Brain Growth Enzymes | By Michelle Fay Cortez | 2013-08-28T17:31:59Z | http://www.bloomberg.com/news/2013-08-28/potential-autism-trigger-found-in-brain-growth-enzymes.html | 8 | 28 | c8d27e82a1a2140ab9a61b80ee3996b7bbbdbfbf | Some cases of autism may be related
to damage in a key set of enzymes that are critical during brain
growth and development, possibly helping narrow the search for
causes of the condition, researchers said. The enzymes known as topoisomerases work like scissors and
glue when brain cells known as neurons are being copied or
expressed, said Mark Zylka , an associate professor in the
Neuroscience Center at the University of North Carolina School
of Medicine in Chapel Hill . When studies linked mutations in the
enzymes to some patients with autism last year, the researchers
sought to determine what exact effect they had on the brain. The study found the enzymes are essential for the proper
functioning of some extremely long genes, including dozens of
those that have gone awry in patients with autism, Zylka said.
The researchers inhibited the enzymes with a generic cancer
medicine and found they effectively silenced about 50 genes
linked to autism, according to the study published today in the
journal Nature . “Our study shows the magnitude of what can happen if
topoisomerases are impaired,” Zylka said. “We think there are
probably other drugs or chemicals in the environment that can
have this same effect. We believe this is just the tip of the
iceberg. We are doing additional research to see if other
compounds like this exist, and we have hints there are others.” One in 50 U.S. children are diagnosed with autism or a
related disorder, according to the Centers for Disease Control
and Prevention . Children with autism may be unresponsive to
people, become indifferent to social activity and have
communication difficulties. The findings should help investigators in their hunt for
causes of autism, Zylka said. While in the past scientists had
no idea what to look for, now they can quickly zero in on
compounds that inhibit topoisomerases. “We can now systematically screen drugs for similar
effects on autism genes,” he said, explaining that other
compounds and chemicals may also cause damage. “That’s a real
future direction that has the potential to identify
environmental causes of autism.” To contact the reporter on this story:
Michelle Fay Cortez in Minneapolis at
[email protected] To contact the editor responsible for this story:
Reg Gale at
[email protected] | 2013 | potential-autism-trigger-found-in-brain-growth-enzymes |
Huawei Sees 5G Wireless Boosting Mobile Speeds 100 Times by 2020 | By Bloomberg News | 2013-08-28T03:02:11Z | http://www.bloomberg.com/news/2013-08-28/huawei-sees-5g-wireless-boosting-mobile-speeds-100-times-by-2020.html | 8 | 28 | 510af62dc0a0a07051d7d717d97468f01c5880f0 | Huawei Technologies Co., China ’s
largest phone-network equipment maker, said it plans to
introduce fifth-generation mobile technology for commercial
service by 2020, with speeds 100 times current 4G networks. Even before 4G service is commercially available in China,
Huawei has devoted hundreds of engineers to develop the
technology, Ken Hu, the Shenzhen-based company’s deputy chairman
and rotating chief executive officer, said in an e-mail today. China Mobile Ltd. (941) , the world’s largest wireless carrier, is
conducting trials of 4G networks in China with licenses for
commercial service anticipated by the end of the year, the
company said in March. There are about 200 4G networks operating
commercially in 75 countries today, with another 200 in progress
or planned, Hu said, citing the Global Mobile Suppliers
Association. About half the world’s population will have access
to 4G mobile networks by 2018, he said. Adoption of 5G, which requires appropriate airwaves be
released by government regulators, will mean mobile broadband at
speeds of up to 10 gigabytes, or 100 times the fastest 4G
connection, Hu said. Current 4G mobile technology offers
Internet connections at speeds up to 100 megabytes, three times
faster than the 3G technology that preceded it. China is looking to jointly develop 5G technology with
companies in Taiwan and set up a cross-strait supply chain, the
Taipei-based Commercial Times reported today, citing China’s
Ministry of Industry and Information Technology Deputy Minister
Liu Lihua. Liu invited Taiwan-based companies including Hon Hai
Precision Industry Co. (2317) and MediaTek Inc. (2454) to join China’s 5G
development team, the report said, without saying where it got
the information. To contact Bloomberg News staff for this story:
Edmond Lococo in Beijing at
[email protected] To contact the editor responsible for this story:
Michael Tighe at
[email protected] | 2013 | uawei-sees-5g-wireless-boosting-mobile-speeds-100-times-by-2020 |
Is This 'Leading From Behind' on Syria? | By Jeffrey Goldberg | 2013-08-28T16:24:38Z | http://www.bloomberg.com/news/2013-08-28/is-this-leading-from-behind-on-syria-.html
Oh, for God’s sake. From the Los Angeles Times : There’s nothing like acting out of an acute fear of mockery to get you mocked, I suppose. Remember “leading from behind” ? This quote ranks up there in the did-someone-actually-say-that category. (By the way, I don’t doubt the accuracy of the reporting, I’m just incredulous that someone in a position of responsibility would be so brutally frank.) “Muscular,” by the way, is one of those words | 8 | 28 | 7f176ee54060d9594992c8af91588255a97ec57f | 2013 | is-this-leading-from-behind-on-syria- |
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China to Place Consumption Tax on More Luxury Goods, Xinhua Says | By Bloomberg News | 2013-08-28T06:25:26Z | http://www.bloomberg.com/news/2013-08-28/china-to-place-consumption-tax-on-more-luxury-goods-xinhua-says.html | 8 | 28 | 0326eb14d7653c510f6203b0be076141b67c1afa | China will widen the scope of its
consumption tax to include more luxury goods , the official
Xinhua News Agency reported, a sign that some high-end brands
may become more expensive for purchasers on the mainland. The Asian nation is also targeting goods that cause heavy
pollution or use excessive levels of energy for consumption tax
adjustments, Xinhua said on its official microblog today. The
news agency cited a report by China’s finance minister Lou Jiwei
to the Standing Committee of the National People’s Congress. High consumption and import taxes are already driving
Chinese buyers to make luxury purchases overseas rather than at
home, propping up European sales for brands from Prada SpA (1913) to
Gucci. Close to a third of Chinese luxury buyers will shop in
Europe in 2013, industry consultant McKinsey & Co. estimates, up
from a fifth last year. The news agency didn’t specify which new items would be
taxed. The country already has consumption taxes on a variety of
products, including taxes of as much as 20 percent for high-end
watches and 5 percent on gold, silver, platinium and diamond
jewelry, according to research by HSBC Holdings Plc. Gem sets
are subject to a 10 percent consumer tariff. Chinese consumers are set to make up a third of luxury
consumption globally by 2015, up from 27 percent in 2012,
according to McKinsey. To contact Bloomberg News staff for this story:
Liza Lin in Shanghai at
[email protected] To contact the editor responsible for this story:
Stephanie Wong at
[email protected] | 2013 | china-to-place-consumption-tax-on-more-luxury-goods-xinhua-says |
Republican-Led Michigan Senate Votes to Expand Medicaid | By Alex Wayne | 2013-08-28T12:31:59Z | http://www.bloomberg.com/news/2013-08-28/republican-led-michigan-senate-votes-to-expand-medicaid.html
The Republican-led Michigan state
Senate voted to expand the Medicaid health program for low-income people, accepting a key facet of U.S. President Barack
Obama ’s health-care overhaul. Yesterday’s 20-18 vote in which most Republicans were
opposed, was the last major hurdle for the legislation, which
must return to the state House before Governor Rick Snyder , a
Republican, signs it into law. The House, also controlled by
Republicans, passed the measure for the first time in June. “Healthy Michigan will make our state healthier and
stronger,” Snyder said in a statement after the vote. “It also
will save money for the state’s taxpayers and job providers,
help control medical costs, improve the state’s business
climate, and boost our economy.” An expansion of state-run Medicaid programs next year is
one of two pillars of the federal Affordable Care Act, which may
extend health coverage to about 25 million uninsured people
nationwide. The Obama administration has labored to persuade
Republican-controlled states to embrace any aspect of the 2010
health law, which largely takes effect Jan. 1, 2014. The Healthy Michigan Plan would increase Medicaid coverage
by about 470,000 people. Snyder was among a small group of
Republican governors | 8 | 28 | 4bfda55a5bb8f1322caa66d07e933fbe0c0d9ee3 | the expansion until 2017, when states must then begin to
contribute a share that rises to 10 percent by 2020. State Participation Half the U.S. states including Michigan are participating
in the expansion or planning on it, according to the Kaiser
Family Foundation , a nonprofit group based in Menlo Park ,
California. Five more state are considering it, and the rest
have refused. The expansion would save Michigan about $1 billion through
2020 by reducing or eliminating spending on state programs for
the uninsured, according to a March analysis of Snyder’s initial
proposal by the state’s Senate Fiscal Agency. The expansion won’t begin to cost the state money until at
least the 2023 fiscal year, the Senate agency said, and perhaps
not until 2035. To contact the reporter on this story:
Alex Wayne in Washington at
[email protected] To contact the editor responsible for this story:
Reg Gale at
[email protected] | 2013 | republican-led-michigan-senate-votes-to-expand-medicaid |
Obama Begins Selling Action on Syria Ahead of Decision | By Margaret Talev | 2013-08-28T11:57:46Z | http://www.bloomberg.com/news/2013-08-28/obama-begins-selling-action-on-syria-ahead-of-decision.html
President Barack Obama is working to build support for a military strike against Syria: assembling a multinational coalition, consulting with Congress and planning to lay out the evidence for the American public in coming days. Obama, who has yet to say how the U.S. will respond to Syria’s use of chemical weapons, is drawing on lessons from U.S. wars in Iraq and Afghanistan , and the 2011 NATO intervention in Libya . He is considering options that can be executed without congressional approval, without U.S. troops on the ground and without stirring up a political backlash. The decision on using force in Syria is complicated by the intensity of the civil war in which more than 100,000 people have been killed in 2 1/2-years of fighting. Obama has been wary of involving the U.S. more deeply in the Syrian conflict, citing concerns that intervention may bolster extremist groups or worsen the bloodshed. “Their challenge is, how do we thread this needle of using force in a way that can help the situation on the ground, help the Syrian people, but doesn’t accelerate a civil war,” said Shawn Brimley, a former member of Obama’s National Security Council who directed strategic planning during the Libya intervention. International Action The U.S., France and the U.K. moved closer to military action yesterday, even as White House spokesman Jay Carney told reporters that Obama hasn’t decided how to proceed. Carney stressed that any action wouldn’t be designed to topple the regime of Syrian President Bashar al-Assad. Its goal, he said, would instead be to send the message that the use of chemical weapons is unacceptable and violates international norms. “To allow it to happen without a response would be to give a green light to the Assad regime and other potential users of chemical weapons that there will be no consequences,” Carney said. “That is profoundly not in the interest of the United States , our allies and partners, to the region, or the world.” Potential military moves, such as cruise missile strikes, may be carried out over a short period of time and at less cost than imposing no-fly zone, such as the one used over Libya. The risk of a limited strike is that it might be ineffective. ‘Token Attacks’ “If it’s just going to be some token attacks with cruise missiles with no follow up or no implementation of a policy to help the rebels succeed, then it won’t be worth anything,” Senator John McCain , an Arizona Republican, said in an interview. Even after a briefing from the White House national security adviser, Susan Rice , McCain said he didn’t have a sense of where the Obama administration is heading or its timetable. As part of the consultations, Obama has also spoken with U.K. Prime Minister David Cameron , French President Francois Hollande , Australian Prime Minister Kevin Rudd and Canadian Prime Minister Stephen Harper , according to the White House. Vice President Joe Biden , Defense Secretary Chuck Hagel, Secretary of State John Kerry , Joint Chiefs of Staff Chairman Martin E. Dempsey and UN Ambassador Samantha Power have made dozens of additional calls to counterparts throughout the world. Phil Carter, a senior fellow with the Center for New American Security, said that, scope aside, any military strikes “will be significantly more legitimate and have a much better claim to lawfulness if they’re done with a coalition.” ‘Collective Self-Defense’ Short of a UN Security Council resolution, which appears unlikely because of Russia ’s support for the Assad regime, Carter said, “the best legal case that can be made here is for some sort of collective self-defense by a group of regional actors or NATO or some other coalition.” Planning for limited military strikes still doesn’t guarantee that, once initiated, the action will remain limited, Brimley said. “Once you start using force, it becomes a very slippery slope,” he said. While the North Atlantic Treaty Organization action in Libya was authorized as a mission to protect civilians in Benghazi from now-deceased President Muammar Qaddafi , “it became ultimately a campaign to oust Qaddafi from power.” “That was Libya, for God’s sake,” Brimley said. “This is Syria. Think of the worst possible situation in the Middle East and this is possibly it.” Congressional Consultations White House Chief of Staff Denis McDonough , Rice and top Defense and State Department officials have been calling congressional leaders and chairmen of key committees. They have conveyed the status of deliberations rather than lay out details | 8 | 28 | 4c4d1c2f23e147baa2a193c49c527d54 | 2013 | obama-begins-selling-action-on-syria-ahead-of-decision |
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Finland Raises 4 Billion Euros to Pay for Wider Budget Deficit | By Kati Pohjanpalo | 2013-08-28T14:17:36Z | http://www.bloomberg.com/news/2013-08-28/finland-raises-4-billion-euros-to-pay-for-wider-budget-deficit.html | 8 | 28 | 9dd83623ff288b5def9a5eb42ba2a7945d96b15e | Finland ’s government raised 4
billion euros ($5.3 billion) in a sale of five-year euro-denominated bonds to replenish its coffers depleted by falling
tax revenue amid its second recession in four years. The bond, maturing on Sept. 15, 2018, pays a coupon of
1.125 percent, the Helsinki-based State Treasury said in an e-mailed statement. The bonds were priced at 99.733 with a yield
of 1.180 percent. It received orders from 101 investors worth
6.9 billion euros. “The issue generated wide interest among domestic
investors,” Deputy Funding Director Anu Sammallahti said after
the bond was priced. “About 20 percent of the bond was sold to
investors in Finland. The large number of pension funds was a
pleasant surprise in this maturity.” Finland, which is yet to escape a recession that started
last year, is raising funds to pay for its 2013 budget deficit
after the country lowered a forecast for tax revenue . The
economy will shrink 0.4 percent in 2013 and expand 1.4 percent
in 2014, according to a Bloomberg survey of 11 economists. The
northernmost euro member is the only country within the monetary
union to have an AAA rating with a stable outlook from all three
major credit rating companies. Finland increased its net borrowing estimate for 2013 on
Aug. 23 by 15 percent to about 9 billion euros as the recession
erodes tax revenue. The higher funding target won’t pose a
problem to the treasury, which plans to distribute it among its
various instruments, Sammallahti said on Aug. 23. To contact the reporter on this story:
Kati Pohjanpalo in Helsinki at
[email protected] To contact the editor responsible for this story:
Tasneem Brogger at
[email protected] | 2013 | finland-raises-4-billion-euros-to-pay-for-wider-budget-defici |
Putin Underwear Artist Flees Russia to France for Asylum | By Anatoly Temkin | 2013-08-28T15:35:09Z | http://www.bloomberg.com/news/2013-08-28/putin-underwear-artist-flees-to-france-for-asylum-curator-says.html | 8 | 28 | 1f6a95073d209adfbc8d9ce96d4085bc45325158 | An artist whose paintings feature President Vladimir Putin in women’s underwear fled to France after authorities in St. Petersburg shut his exhibition and confiscated four of his works, the exhibition’s curator said. Konstantin Altunin flew to Paris yesterday and plans to seek political asylum, Tatiana Titova, the director of the Museum of Power , said by phone from Putin’s hometown. The seized works also included satirical portrayals of Prime Minister Dmitry Medvedev in women’s underwear. Police will study the paintings to determine if they violate any laws, the Interior Ministry said in a statement on its website. “We are powerless facing the despotism of authorities,” said Titova, who declined to provide Altunin’s mobile number. “The museum was closed for no reason.” Putin signed a law in July banning “propaganda of non-traditional sexual relations” among minors, which drew criticism from gay-rights activists worldwide, including the singer Madonna. Three members of the all-female punk group Pussy Riot were convicted of hooliganism and inciting religious hatred last year for lip-syncing a song critical of Putin in Moscow’s main cathedral. Two of the women remain in jail. To contact the reporter on this story: Anatoly Temkin in St. Petersburg at [email protected] To contact the editor responsible for this story: James M. Gomez at [email protected] | 2013 | putin-underwear-artist-flees-to-france-for-asylum-curator-says |
Danske Bank Reprimand, Ex-JPMorgan Trader, China: Compliance | By Carla Main | 2013-08-28T04:00:01Z | http://www.bloomberg.com/news/2013-08-28/danske-bank-reprimand-ex-jpmorgan-trader-china-compliance.html | 8 | 28 | 7328b635960c493a8f4e85462af2a5e8 | Denmark’s bank regulator reprimanded
Danske Bank A/S (DANSKE) for inadequate management of market risks two
months after ordering Denmark’s biggest lender to add $18
billion in risk weighted assets. The Financial Supervisory Authority said yesterday the
Copenhagen bank must ensure control of market risks across the
company, weigh risks against returns, and safeguard against
alterations to risk models driving changes in assessments. The
agency also called for greater transparency in decision making. The Copenhagen-based agency ordered the improvements after
reviewing a study on the bank’s risk management systems that
Danske paid for and that was requested by Denmark’s 14-member
Financial Council, which advises the FSA on key cases. The FSA
said it received the analysis, conducted by the consulting firm
Oliver Wyman , on June 18. The review was ordered to determine
whether Danske had taken on more risk than it budgeted for and
whether its assessments mirrored reality. Danske agreed to increase capital allocated to meet its
solvency requirements, the FSA said. The bank has taken steps to improve risk management, the
FSA said. It is hiring an external consultant to assess its
models, and the market risk committee hired four people earlier
this year, bringing total employees in the unit to about 46.
Management has agreed to hire more people as needed, the FSA
said. Danske was identified by a government panel as one of
Denmark’s too-big-to-fail banks earlier this year. Compliance Policy India Regulator Sets Rules for Commodity Exchange Board Members New rules in India provide that not less than 50 percent of
the board strength of a commodity futures exchange shall be
independent directors and they should be appointed for a period
of three years, the Forward Markets Commission said on its
website. The Forward Markets Commission shall appoint four
independent directors, the regulator said in the rules. In addition, directors should satisfy criteria of “fit and
proper person,” and the appointment of the chief executive
officer shall be subject to prior approval of the commission,
the regulator said. Exchanges have to furnish information related to the board
and corporate governance to the commission by Sept. 2. Compliance Action EU Investigation Finds China Solar-Panel Makers Got Aid Chinese solar-panel makers received subsidies, a European
Union investigation showed, increasing the likelihood of EU
tariffs on imports of the renewable-energy technology from China
to counter trade-distorting state aid. The European Commission has concluded in the probe opened
last November that Chinese manufacturers of crystalline silicon
photovoltaic modules or panels, and cells and wafers used in
them, benefited from preferential lending, tax programs and
other aid, an EU official said yesterday in Brussels. The
inquiry is one of two that the commission is conducting into
alleged unfair Chinese trade in solar goods. The commission on Aug. 2 approved an agreement with China
to curb Chinese shipments of solar panels as part of a parallel
probe into below-cost sales, a practice known as dumping.
Chinese manufacturers that take part in the pact are being
spared provisional EU anti-dumping duties as high as 67.9
percent. The commission is engaged in a political balancing act as
it seeks to limit Chinese competition against European
manufacturers. On Aug. 7, the commission decided against
imposing preliminary anti-subsidy tariffs on Chinese solar
panels. SEC’s White to Meet With Exchanges on Nasdaq Trading Halt U.S. Securities and Exchange Commission Chairman Mary Jo
White will meet Sept. 12 with the heads of exchanges and other
self-regulatory organizations to discuss last week’s trading
halt in Nasdaq-listed stocks. “The meeting at the SEC will address the market data
dissemination system involved in last week’s halt as well as
other critical market systems and infrastructure issues,” John
Nester , an SEC spokesman, said in a statement yesterday. Nasdaq ’s Aug. 22 shutdown stopped trading in more than
2,000 U.S. stocks for three hours. The outage stemmed from a
communication error between another exchange and a network that
Nasdaq OMX Group Inc. (NDAQ) operates to disseminate data on quotes and
prices. White also said after the outage that the SEC should
advance a proposal that would require exchanges and other
entities that facilitate trading to test the reliability of
their technology. Ex-JPMorgan Trader Released, Saying He Opposes Extradition Former JPMorgan Chase & Co. (JPM) trader Javier Martin-Artajo was
released from police custody after telling a Madrid court he
opposed attempts by U.S. prosecutors to extradite him on charges
he hid trading losses that cost the bank $6.2 billion. The former trader turned himself in yesterday morning after
being contacted by investigators, a Spanish police official
said. He was released after a hearing in Madrid yesterday in
which he said he was unwilling to be extradited, according to a
spokeswoman for the National Court. The U.S. this month charged Martin-Artajo, a Spanish
citizen, and Julien Grout, a French citizen, with trying to hide
the losses stemming from trades by Bruno Iksil, the Frenchman at
the center of the case who became known as the “London Whale.”
Grout and Martin-Artajo face as many as 20 years in jail if
convicted of the most serious counts, including conspiracy and
wire fraud. Martin-Artajo, 49, oversaw trading strategy for Iksil’s
synthetic portfolio at JPMorgan’s chief investment office in
London, while Grout was a trader who worked for him. Martin-Artajo’s lawyer, Lista Cannon, didn’t immediately
respond to a call seeking comment yesterday. He “is confident
that when a complete and fair reconstruction of these complex
events is completed, he will be cleared of any wrongdoing,” a
spokeswoman for his law firm said earlier this month. Jennifer
Zuccarelli , a spokeswoman for JPMorgan, declined to comment. At a hearing yesterday, Martin-Artajo’s lawyer filed
documents in which his client denied the allegations, according
to a court official who asked not to be identified because they
weren’t authorized to speak publicly. The U.S. now has 40 days
to file sworn statements in support of its extradition request. The extradition process “can take up to several months,”
said Ivan Mercado, managing partner at Mercado & Rengel, a law
firm in Spain that works on U.S. extradition cases. Mercado is
not involved in the case. The spokeswoman for the court said Martin-Artajo’s
passport has been confiscated. Another court official said that
wasn’t the case, but that he can’t leave Spain without court
approval. Grout is living in France and isn’t a fugitive, his lawyer,
Edward Little , a partner at Hughes Hubbard & Reed LLP in New
York, said in an Aug. 12 interview, two days before his client
was charged. “He visited the U.S. last month with confidence he was not
being indicted and moved to France to save money and look for a
job,” Little said at the time. France has no obligation under
its extradition treaty with the U.S. to send Grout to New York.
Little declined to comment yesterday. Amazon Drops Price Parity Clause for German Retailers Amazon (AMZN) told Germany’s antitrust regulator it will drop the
company policy, known as the price parity clause, that forced
retailers to offer their lowest price at Amazon marketplace as
well as elsewhere. The Federal Cartel Office said it is reviewing whether it
can now drop the probe of Amazon’s policy. The company’s price
parity clause prevented retailers that offer goods on Amazon’s
platform from selling them cheaper elsewhere on Internet. Earlier this year, Germany’s Cartel Office said it was
surveying 2,400 retailers as it examined the impact of Amazon’s
price parity clause on Amazon marketplace online retailers. At
that time, the Cartel Office said Amazon may need to remove the
clause if the survey shows it leads to higher prices without
benefit to consumers. Courts BofA FDIC Suit for $1.7 Billion in Investor Losses Thrown Out Bank of America Corp .’s lawsuit against the Federal Deposit
Insurance Corp. over $1.7 billion in investor losses was
dismissed by a federal judge. The suit was based on the bank’s role as trustee for Ocala
Funding LLC. U.S. District Judge Barbara Rothstein in Washington threw
out the case, saying there weren’t enough assets to make any
payments on general creditor claims, according to her decision
yesterday. The case stems from a mortgage-fraud scheme at failed
lender Taylor, Bean & Whitaker Mortgage Corp. From 2002 through
August 2009, Lee Farkas , while he was chairman of Taylor Bean ,
sold more than $1.5 billion in fake mortgage loans to Colonial
Bank with the collusion of its employees and diverted more than
$1.5 billion from Ocala Funding, a financing vehicle Taylor Bean
controlled. Farkas is serving a 30-year sentence, following conviction
for 14 counts of conspiracy and bank, wire and securities fraud
relating to the scheme. The case is Bank of America v. FDIC, 10-cv-01681, U.S.
District Court, District of Columbia (Washington). Interviews/Conferences Hong Kong Has ‘Last Mover Advantage’ on Dark Pools, Adler Says Having a single market without much fragmentation, stamp
duty and regulations around dark pools, which keep their market
share low, have helped to keep issues associated with high
frequency trading out of Hong Kong, Ashley Alder, CEO of H.K.
Securities and Futures Commission , said at a conference in the
city Aug. 26. Dark pool consultation “hopefully” will be out this year,
Alder said in his remarks. Dark pool rules will create a market-wide code to replace
current license conditions, according to Alder. The Hong Kong SFC is in discussions with exchanges on
issues including circuit breakers, Alder said. To contact the reporter on this story:
Carla Main in New Jersey at
[email protected] . To contact the editor responsible for this report:
Michael Hytha at [email protected] . | 2013 | danske-bank-reprimand-ex-jpmorgan-trader-china-compliance |
Big Fines Won't Solve Too Big to Fail | By Megan McArdle | 2013-08-28T16:36:18Z | http://www.bloomberg.com/news/2013-08-28/big-fines-won-t-solve-too-big-to-fail-.html
Five years after the financial crisis, the “too big to fail” banks have paid $100 billion in legal costs | 8 | 28 | aa41837c8883c0066bb536ecbf1715140cf7218f | 2013 | big-fines-won-t-solve-too-big-to-fail- |
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Rand Falls to 4 1/2-Year Low on Syria as S. Africa Strikes Widen | By Jaco Visser | 2013-08-28T06:27:40Z | http://www.bloomberg.com/news/2013-08-28/rand-falls-to-4-1-2-year-low-on-syria-as-s-africa-strikes-widen.html | 8 | 28 | 16d7336aae0deeb24ffca57a8e1b3145a7f05ff8 | South Africa ’s rand weakened to a 4
1/2-year low as strikes spread across the continent’s biggest
economy and the U.S. and its allies moved closer to attacking
Syria , fanning concern capital outflows will accelerate. South Africa may face strikes involving as many as 335,000
workers after deadlocks in wage talks between employers and the
country’s biggest labor unions spread to gas stations and car
dealerships . The U.S., France and the U.K. are considering
limited military action against Syria after concluding the
regime used chemical weapons against civilians. The tension has
worsened a rout that’s seen global funds pull out of emerging-markets on bets the Federal Reserve will pare stimulus. “While all emerging markets remain under pressure, the
rand has the additional pressure of the possibility of wide
spread and significant labor action,” Mohammed Nalla, head of
strategic research at Nedbank Group Ltd., said in an e-mailed
note to clients today. The currency fell as much as 1.2 percent to 10.5096 per
dollar, the weakest intraday level since March 2009. It was
trading 0.8 percent lower at 10.4684 per dollar as of 8:03 a.m.
in Johannesburg, extending losses this year to 19 percent, the
worst of 16 major currencies tracked by Bloomberg. Yields on 10-year bonds increased 4 basis points, or 0.04 percentage point,
to 8.36 percent after jumping 10 basis points yesterday. The spot price of Brent crude oil jumped 2.3 percent to
$116.99 per barrel, the highest level since Feb. 19 for the
generic contract. South Africa imports 70 percent of its oil
needs. Foreign investors have sold a net 1.68 billion rand ($161
million) of bonds this month, according to JSE Ltd. data. To contact the reporter on this story:
Jaco Visser in Johannesburg at
[email protected] To contact the editor responsible for this story:
Vernon Wessels at
[email protected] | 2013 | rand-falls-to-4-1-2-year-low-on-syria-as-s-africa-strikes-widen |
China Mengniu Profit Gains as Foreign Tie-ups Boost Sales | By Bloomberg News | 2013-08-29T06:56:39Z | http://www.bloomberg.com/news/2013-08-28/china-mengniu-posts-profit-gain-as-pricier-products-boost-sales.html | 8 | 28 | 8db85af6c619441f87d0ca4ef1975466 | China Mengniu Dairy Co. (2319) , the
country’s largest dairy producer, increased first-half earnings
16 percent as tie-ups with foreign milk producers helped
reassure customers its products were safe. Shares surged. Mengniu turned to France ’s Danone SA and Denmark’s Arla
Foods amba to win back confidence from Chinese consumers after a
series of food safety scandals hammered sales of domestic dairy
products. Mengniu also made deals to strengthen control of its
supply chain and expand its infant formula business. The company
agreed to buy a stake in raw-milk producer China Modern Dairy
Holdings Ltd. in May to gain greater control of milk supplies. “The overall industry is seeing decent growth in
volumes,” Emma Liu, a Hong Kong-based analyst at Nomura
Holdings Inc., said before the earnings announcement. “As
consumers grow increasingly aware of food safety, they will
stick to the big brands.” The Hohhot, Inner Mongolia-based producer said in a filing
to the Hong Kong stock exchange late yesterday that first-half
net income climbed to 749.5 million yuan ($122 million) from
644.7 million yuan a year earlier. That compared with the 753.6
million yuan average of seven analyst estimates compiled by
Bloomberg. Sales increased 13 percent to 20.67 billion yuan from
18.24 billion yuan. Mengniu shares jumped as much as 7.9 percent to HK$32.20 in
Hong Kong today, headed for the biggest gain since May 20. The
stock traded 7.5 percent higher at HK$32.10 at 2:50 p.m. local
time. The company’s stock has gained 46 percent this year,
compared with a 4.5 percent decline in the benchmark Hang Seng
Index . Danone Deal The company’s introduction of new and more expensive
products this year, and improvement of existing ones helped
boost consumer confidence and sales, Sun Yiping, Mengniu’s chief
executive officer said in a briefing in Hong Kong today. A
shortage and resulting rise in the cost of raw milk led to
higher costs in the first six months of the year, she said. Mengniu announced three major deals in two months,
including a tie-up with Paris-based Danone SA (BN) and an investment
in baby milk company Yashili International Holdings Ltd. (1230) , amid a
government push to improve product standards and consolidate the
industry. Danone, the French owner of Activia yogurt and Evian water,
said in May it would spend 325 million euros ($434.6 million) to
form a joint venture with Mengniu and invest in the company. The
Chinese producer, which sells dairy products ranging from yogurt
to liquid milk under its namesake brand on the mainland, already
has a tie-up with Danish producer Arla Foods amba from 2012. Mengniu will have more room to grow as China’s per capita
consumption of dairy remains low, said Liu, who has a buy rating
on the stock. Supply Chain In 2011, the company said moldy cattle feed led to
excessive toxin levels in its milk. Mengniu was among 22 dairy
companies found to have sold products containing the chemical
melamine in 2008, when tainted powder killed six infants in
China. Mengniu also made deals to strengthen control of its supply
chain and expand its infant formula business. The company agreed
to buy a 26.9 percent stake in raw-milk producer China Modern
Dairy Holdings (1117) in May for HK$3.18 billion ($410 million) in a
deal that would give it preferential purchase rights to Modern
Dairy’s milk supply. The dairy product maker also offered to buy 75 percent of
Yashili in a deal valued at about HK$12.5 billion in June. Yashili ranked seventh in China’s infant-formula market
last year with a 4.7 percent share, according to market
researcher Euromonitor International. The investment will give
Mengniu “an immediate and strong presence” in the smaller
Chinese cities beyond Beijing, Shanghai and Guangzhou,
Jacqueline Ko, a Hong Kong-based analyst at Kim Eng Securities,
wrote in a report this month. Food Quality Mengniu will also benefit from China’s push to consolidate
its dairy industry as authorities may implement policies
favorable to local companies while seeking to improve food
quality standards, said Ko, who has a buy rating on the stock. Of the 30 analysts covering Mengniu, 22 have a buy rating,
six have a hold call and two have a sell recommendation,
according data compiled by Bloomberg, China is seeking to groom as many as five large domestic
infant-formula companies as part of the government’s move to
raise product standards by 2018, the China Securities Journal
reported Aug 16. The plan, which will be put in place in stages starting
this year, envisions the creation of up to five firms with more
than 5 billion yuan of annual sales by the end of 2018, the
newspaper said, citing people it didn’t identify. Mengniu has the biggest share in China ’s drinking milk
market, with about 34 percent in 2012, according to Euromonitor. To contact Bloomberg News staff for this story:
Liza Lin in Shanghai at
[email protected] To contact the editor responsible for this story:
Stephanie Wong at
[email protected] | 2013 | china-mengniu-posts-profit-gain-as-pricier-products-boost-sales |
U.K. Said to Examine Short Syria Submarine, Air Ops | By Kitty Donaldson | 2013-08-28T15:24:50Z | http://www.bloomberg.com/news/2013-08-28/u-k-said-to-examine-short-syria-submarine-air-ops.html | 8 | 28 | 08dec31002bf9b1be18994b440493590137f0b00 | The U.K. military presented Prime Minister David Cameron with an option for a short yet intensive air strike on Syria using Trafalgar-class submarines and Tornado aircraft, according to a person familiar with the planning. Cameron, who headed a two-hour meeting of his National Security Council in London today, is working alongside President Barack Obama ’s administration and other allies including France to reach agreement on possible limited military action against Syria. They’ve concluded that President Bashar al-Assad’s forces used chemical weapons against civilians near Damascus last week in attacks that Syrian opposition groups say killed more than 1,000 people. The U.S. is planning to use Tomahawk cruise missiles against hundreds of Syrian targets, including some of Assad’s elite military units, if a strike is launched. The U.K., which does not have destroyers carrying Tomahawks as the U.S. does, would use submarines to launch the cruise missiles and also employ its Tornado attack aircraft to fire Storm Shadow missiles, said the person, who asked not to be identified because the discussions are private. “Ministers agreed that the Assad regime was responsible for this attack and that the world shouldn’t stand idly by, and that any response should be legal, proportionate and specifically to protect civilians by deterring further chemical weapons use,” Cameron’s office said in an e-mailed statement after the NSC meeting. Britain has put forward a draft resolution to the United Nations Security Council seeking approval for “all necessary measures” under the UN Charter. Not Limited The planning for possible strikes on Syria is not limited to a single-day operation, according to an Obama administration official speaking on condition of anonymity. The U.S. and its allies are still working to define the goals for the military strike, the official said. Britain’s chief of defence staff, Nick Houghton, returned yesterday from a two-day visit to Jordan where he attended the third in a series of meetings of his international counterparts to discuss the situation in Syria, the person familiar with the British planning said. The U.K.’s military assets in the eastern Mediterranean include a Royal Air Force base at Akrotiri in Cyprus. The U.K. is unlikely to use Cyprus as a base for airstrikes because it’s too close to Syria and within range of any retaliatory strikes by Assad’s forces, the person said. Italian Base In recent conflicts, the U.K. has used the Gioia del Colle airbase in Italy , from which RAF planes flew during the 2011 Libyan conflict. There’s no plan to make use of four U.K. warships, including HMS Bulwark, an assault ship, and HMS Illustrious, a helicopter carrier, that are taking part in Operation Cougar, a long-planned training exercise in the region. Hundreds of marines are currently in Albania for the mission. The force’s capabilities are limited to ground invasion, which would not form part of any initial strike on Syria. The Sun newspaper has reported that one of the U.K.’s Trafalgar class of submarines has been seen off Gibraltar, at the western entrance to the Mediterranean. To contact the reporter on this story: Kitty Donaldson in London at [email protected] To contact the editor responsible for this story: James Hertling at [email protected] | 2013 | u-k-said-to-examine-short-syria-submarine-air-ops |
Japan Copper-Alloy Product Output Rises First Month in Nine | By Jae Hur and Ichiro Suzuki | 2013-08-28T02:59:15Z | http://www.bloomberg.com/news/2013-08-28/japan-copper-alloy-product-output-rises-first-month-in-nine-1-.html | 8 | 28 | 947d86aa23a49812ac15a85ddaaf96bf805492bc | Japan ’s output of copper and copper-alloy fabricated products climbed 1.6 percent in July from a
year earlier, gaining for the first time in nine months as
demand for exports increased, an industry group said. Production, including sheets and tubes, was 69,670 metric
tons last month, compared with 68,572 tons a year ago, the Japan
Copper & Brass Association said today, citing preliminary data.
Output fell 3.7 percent to 66,359 tons in June. Japan’s overall exports jumped by the most since 2010 in
July, aiding Prime Minister Shinzo Abe’s efforts to drive an
economic recovery even as rising energy costs boosted the trade
deficit. The stronger exports show Japan’s economy is benefiting
from a recovery in demand in Europe and the U.S., and the yen’s
11 percent decline against the dollar this year. Domestic demand continued declining last month, falling 1.3
percent to 56,864 tons from a year earlier, while export demand
jumped 16.9 percent to 12,806 tons, the highest level since May
2011, the industry group said. Copper wire and cable shipments climbed 3.8 percent to
61,800 tons in July from a year earlier, the highest level since
November as demand from the construction and electric-machinery
industries gained, the Japanese Electric Wire & Cable Makers’
Association said on Aug. 20. Deliveries were 54,087 tons in June,
down 5.6 percent from a year earlier. The metal for delivery in three months on the London Metal
Exchange rose 0.2 percent to $7,327 a ton at 11:15 a.m. in Tokyo
and has lost 7.6 percent this year. To contact the reporters on this story:
Jae Hur in Tokyo at
[email protected] ;
Ichiro Suzuki in Tokyo at
[email protected] To contact the editor responsible for this story:
Brett Miller at
[email protected] | 2013 | japan-copper-alloy-product-output-rises-first-month-in-nine-1- |
Iran Pragmatism May Keep Nuclear Talks Alive After Syria Strikes | By Ladane Nasseri and Leon Mangasarian | 2013-08-28T14:25:47Z | http://www.bloomberg.com/news/2013-08-28/iran-pragmatism-may-keep-nuclear-talks-alive-after-syria-strikes.html | 8 | 28 | cd3305d7ea624b19bc4da391cf28458c | Iran ’s interest in better relations
with the West is likely to keep nuclear talks on track even if
the U.S. and allies attack Iranian ally Syria to punish it for
using chemical weapons, analysts said. Iran’s new president, Hassan Rohani, took office this month
after winning election on a pledge to repair ties with Western
powers that are squeezing the Islamic republic’s economy with
sanctions to halt its nuclear program. That spurred expectations
of a resumption of international talks on the issue, which
stalled in April. The proposed strikes against Syria, denounced by Iranian
leaders, may delay that process without derailing it. The U.S.
has warned it’s ready to use force against Iran, too, to stop it
obtaining atomic weapons. Rohani, whose mandate for economic
revival requires an easing of the tensions, will probably win
out over any hardliners advocating anti-Western policies in
solidarity with Syria , said Volker Perthes, director of the
Berlin-based German Institute for International and Security
Affairs, which advises Chancellor Angela Merkel’s government “Strikes would make Iran see that the U.S. is serious
about red lines,” Perthes said in a phone interview. While
there’ll be protests from Iran, “the pragmatists will win the
day by saying ‘Look, we don’t like the U.S. but we have to deal
with them.’” New Team Iran held five rounds of talks with the U.S. and leading
world powers in the 12 months through April, without resolving
differences. Rohani has started putting together a new team to
oversee Iran’s nuclear program and negotiations with the West. Iranian leaders deny they are seeking to build atomic
weapons, as alleged by the U.S. and Israel, which has also
threatened military action if diplomacy can’t halt the program.
Iran has continued to develop its technology as it participated
in talks. The International Atomic Energy Agency said today that
Iran has boosted its output of uranium and upgraded machinery,
though progress has slowed since May. Supreme Leader Ayatollah Ali Khamenei , the ultimate
decision maker on all major affairs of state including nuclear
policy, said on Aug. 3 when he endorsed the new president that
he approves of Rohani’s “prudent” and measured approach toward
the West. Khamenei has spoken out against intervention in Syria,
saying today that it would be a “disaster.” Foreign Ministry
spokesman Abbas Araghchi told reporters yesterday that Western
strikes would “engulf the whole region.” ‘Strong Statements’ Brent crude has risen more than 5 percent in the past week
as tensions mounted over Syria. Iran has in the past threatened
to close the Straits of Hormuz, a key transport route for oil
supplies, if attacked. If the attack does happen, it may lead to some friction
between Rohani and more radical elements including the
Revolutionary Guards and some clerics, yet Iran’s public
response will probably be limited to “strong statements,” said
Mahjoob Zweiri, a professor of Middle East politics at Qatar
University in Doha. “Iran has its own concerns, wants to reduce the impact of
sanctions, wants to have its financial system engaged with the
international system,” he said. On the nuclear issue, “they
may delay negotiations, but I’m not sure they will stop them.” Iran’s economy suffered as the U.S. and European Union
tightened sanctions in recent years. Oil output is near a 25-year low, inflation has exceeded 37 percent, and gross domestic
product will shrink 1.3 percent this year according to
International Monetary Fund forecasts. No Regime Change U.S. President Barack Obama and his allies have said that
they don’t intend to seek the overthrow of Syria’s President
Bashar al-Assad through the proposed military strikes, which are
instead aimed at punishing his government for its alleged use of
chemical weapons. Rebel groups that have been fighting to topple Assad for 2
1/2 years, with backing from the U.S. and its European and Arab
allies, say more than 1,300 people were killed in the chemical
attack last week in a region near Damascus. Syria’s government
has denied responsibility. The extent of the Western action in Syria may determine how
far Iran can decouple its support for Assad from its plans to
re-engage the West, said David Hartwell , Middle East analyst at
research firm IHS Jane’s, by phone from London . Strikes probably won’t be limited to a single day, though
the U.S. and its allies are still working to define the goals of
a prospective campaign, a U.S. official said today, speaking on
condition of anonymity to discuss war planning efforts. ‘Acceptable Storm’ A “fairly limited strike involving some form of punitive
action,” which stops well short of seeking to remove Assad,
“may be an acceptable storm for the Iranians to weather,”
Hartwell said. “That will be something they can ride out, and
in six months come back to talks with the U.S.” Asked whether a Western attack on their Syrian ally would
lead Iran’s policy makers to conclude that their country would
be safer if it had nuclear weapons, Hartwell said that “it’s
probably already the Iranian calculation.” The Islamic republic perceives the nuclear arsenals of
Israel and Pakistan as threats, he said. “As far as they’re
concerned, it’s a question of how the West is willing to respond
and make concessions to alleviate those concerns.” To contact the reporters on this story:
Ladane Nasseri in Dubai at
[email protected] ;
Leon Mangasarian in Berlin at
[email protected] . To contact the editor responsible for this story:
Andrew J. Barden at
[email protected] | 2013 | iran-pragmatism-may-keep-nuclear-talks-alive-after-syria-strikes |
Weil's View on Finance | By Jonathan Weil | 2013-08-28T10:59:04Z | http://www.bloomberg.com/news/2013-08-28/weil-s-view-on-finance.html | 8 | 28 | 969b314771479567b3f112ec513a65ac178689ce | Hello, View readers. Here is some of what I’ve been reading this morning. The rigging of global currency markets Liam Vaughan and Gavin Finch of Bloomberg News present evidence that currency dealers have been manipulating benchmark rates by “banging the close.” It happens routinely: Sudden spikes right before the closing bell in London followed by quick reversals, just as benchmark rates are being calculated. After the Libor scandal, it should surprise no one to learn that a lot of other kinds of benchmarks are rigged. Crazy world of hedge-fund managers Former hedge-fund manager Andy Kessler has a fun time ripping Carl Icahn, Dan Loeb and William Ackman in an op-ed for the Wall Street Journal. He says all hedge-fund managers are a little bit nuts. Imagine that. More on China’s massive deb t dragon Simon Rabinovitch of the Financial Times has another installment in his series on China’s debt burden, this time focusing on corporate debt: “The rise in Chinese government debt levels has gathered more attention in recent years, but the increase in corporate debt has been even bigger. The money owed by Chinese companies shot up from 90 per cent of gross domestic product in 2007 to 124 per cent of GDP, or Rmb64tn, at the end of last year, according to JPMorgan.” The history of a concept: Maximizing shareholder value Jia Lynn Yang writes in the Washington Post: “The belief that shareholders come first is not codified by statute. Rather, it was introduced by a handful of free-market academics in the 1970s and then picked up by business leaders and the media until it became an oft-repeated mantra in the corporate world.” She travels to Endicott, New York, birthplace of International Business Machines Corp., to chronicle the effects. Well done piece. Costs of doing business as a too-big-to-fail bank Amazing statistic from Bloomberg: “The six biggest U.S. banks, led by JPMorgan Chase & Co. and Bank of America Corp., have piled up $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years.” (Jonathan Weil is a Bloomberg View columnist. Follow him on Twitter.) | 2013 | weil-s-view-on-finance |
Gulf Gasoline Falls With High Seasonal Stocks, Approaching Roll | By Eliot Caroom | 2013-08-28T20:26:48Z | http://www.bloomberg.com/news/2013-08-28/gulf-gasoline-falls-with-high-seasonal-stocks-approaching-roll.html | 8 | 28 | 118a56d08286787065b72cb5927595a8e2b8d535 | U.S. Gulf Coast gasoline weakened
for a second day after a government report showed regional
inventories reached the highest level for this time of year
since 2010, and before futures roll from September to cheaper
October contracts. Stockpiles of motor fuel on the Gulf Coast , known as PADD
3, climbed 929,000 barrels last week to 76.6 million barrels,
according to the U.S. Energy Information Administration.
September gasoline futures settled at $3.0945 a gallon today,
13.29 cents higher than October futures. The gap was 12.14 cents
yesterday. The September contract expires on Aug. 30. “That spread has been running 12 to 14 cents,” said Steve Mosby, president of ADMO Energy LLC in Kansas City , Missouri .
“When the rubber hits the ground, when you actually get to a
cash-delivered barrel, you have to account for that spread in
your basis. The back end is not going to come up, the front end
is going to come down as the season ends.” The discount for conventional, 85-octane gasoline, or CBOB,
on the Gulf Coast widened 3.5 cents to 11.5 cents a gallon
versus New York Mercantile Exchange futures at 4:04 p.m.,
according to data compiled by Bloomberg. Reformulated gasoline ,
known as RBOB, fell 2 cents to 6.5 cents a gallon below futures. West Texas Intermediate for October delivery rose $1.09 to
$110.10 a barrel at settlement, and its discount to benchmark
Brent oil widened to $6.51, according to data compiled by
Bloomberg. The 3-2-1 crack spread on the Gulf Coast, a rough measure
of refining margins based on WTI in Cushing, Oklahoma , declined
by 6.1 cents to $14.18 a barrel. The same spread based on Light
Louisiana Sweet oil fell 51.1 cents to $10.93 a barrel. To contact the reporter on this story:
Eliot Caroom in New York at
[email protected] To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2013 | gulf-gasoline-falls-with-high-seasonal-stocks-approaching-ro |
Ghana Court Seen Upholding Mahama Win After Vote Trial | By Ekow Dontoh and Moses Mozart Dzawu | 2013-08-28T00:00:00Z | http://www.bloomberg.com/news/2013-08-28/ghana-court-seen-upholding-mahama-win-after-vote-trial.html | 8 | 28 | 9b5e4d9d964b49f3ba5a5a4b21051eb4 | Ghana ’s highest court will probably
uphold President John Dramani Mahama’s election win, giving him
the authority to rein in the budget deficit and manage the
worst-performing West African currency this year, according to
Eurasia Group. The Supreme Court is set to rule tomorrow on a bid by
opposition leader Nana Akufo-Addo, 69, to overturn the result of
a December vote he lost by almost 326,000 ballots. Akufo-Addo’s
New Patriotic Party alleged that thousands of votes cast were
invalid and counting was marred by irregularities. Mahama, 54,
won 50.7 percent of votes. Upholding Mahama’s victory “will eliminate the
uncertainty” for investors, Philippe de Pontet, Africa Director
of New York-based Eurasia Group, said by phone on Aug. 23.
There’s no “evidence that irregularities subverted the will of
the electorate,” he said. The threat of political instability accelerated the cedi’s
decline as the Supreme Court began hearings in April that were
broadcast live on radio and TV. The currency slumped 11 percent
against the dollar this year, the worst in Africa after the rand
and the Namibian dollar, which is pegged to the South African
currency. It was unchanged at 2.15 per dollar by 4:48 p.m. in
Accra yesterday. Court backing of Mahama’s win will allow his administration
to follow through with plans to curb a budget deficit that
soared to 12.1 percent of gross domestic product last year from
4.3 percent in 2011, undermining the currency. The Finance
Ministry is forecasting a shortfall of 9 percent this year. A win for Mahama will enable the government to “build on
its incremental pathway to trimming the deficit,” de Pontet
said. Bond Yields Yields on the country’s Eurobonds due August 2023 climbed
15 basis points to 8.233 percent since listing Aug. 1, compared
with a three basis-point increase in dollar-denominated African
bonds, according to JPMorgan Chase & Co. indexes . The Supreme Court hearings in Accra included testimony from
former Bank of Ghana Deputy Governor Mahamudu Bawumia, the vice
presidential candidate for the NPP, and Kwadwo Afari-Gyan, head
of the Electoral Commission. The evidence lacked a “smoking gun,” de Pontet said.
Rather than overturning the election result, the court will
probably “shift the focus to reforming the electoral
commission ,” he said. Opposition Protests While an expected ruling against the opposition may spark
protests, there’s unlikely to be “significant unrest,” London-based advisory group, Control Risks, said on its website on Aug.
25. In December, protesters clashed with security forces in
Accra and demonstrated in Kumasi, the second-biggest city and an
NPP stronghold. Mahama agreed to abide by the verdict in a
statement on Aug. 21 and Akufo-Addo, 69, told the state-owned
Daily Graphic newspaper Aug. 26 he was confident the court would
“deliver a fair judgment,” urging supporters to accept the
outcome. The challenge prompted a “wait-and-see attitude” among
investors, Collins Appiah, director of asset management at
Accra-based NDK Financial Services Ltd., said in a phone
interview on Aug. 26. Buyers prefer “holding dollar-denominated
assets compared with their cedi counterparts,” he said. Yields on three-year cedi bonds, the minimum duration in
which foreigners can invest, rose to 20.65 percent by Aug. 26 on
the secondary market from 19.24 percent at an auction on May 30,
according to data compiled by Standard Chartered Plc’s Ghanaian
unit. The Ghana Stock Exchange Composite Index (GGSECI) rallied 65
percent this year, the third-best performing equities gauge
among 94 indexes tracked by Bloomberg. Whoever wins, the government “will face the challenge of
fiscal consolidation,” Razia Khan , London-based head of Africa
economic research at Standard Chartered Plc, said by phone on
Aug. 23. To contact the reporters on this story:
Ekow Dontoh in Accra at
[email protected] ;
Moses Mozart Dzawu in Accra at
[email protected] To contact the editor responsible for this story:
Nasreen Seria at
[email protected] | 2013 | ghana-court-seen-upholding-mahama-win-after-vote-tria |
Franz Ferdinand Sharpens Pop Hooks Before U.S. Concerts | By Robert Heller | 2013-08-28T23:00:00Z | http://www.bloomberg.com/news/2013-08-28/franz-ferdinand-sharpens-pop-hooks-before-u-s-concerts.html
Age is mellowing Franz Ferdinand. Fans should not fret: the band still rips through the post-punk pop which made its name | 8 | 28 | 7413f23e8610493bb7f91cfbc43b7b36 | 2013 | franz-ferdinand-sharpens-pop-hooks-before-u-s-concerts |
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Certificate of Deposits Reported: India Money Markets | By Pooja Saraf | 2013-08-28T12:25:22Z | http://www.bloomberg.com/news/2013-08-28/certificate-of-deposits-reported-india-money-markets.html | 8 | 28 | 96b234425f795e37ab62dd6d457c8928de911cf6 | Following is a table showing certificate of deposits
reported by Companies. The data has been provided by the Fixed Income Money
Market & Derivatives Association of India . | 2013 | certificate-of-deposits-reported-india-money-markets |
Ibovespa Declines for Third Day as Embraer Leads Exporters Lower | By Ney Hayashi | 2013-08-28T20:47:57Z | http://www.bloomberg.com/news/2013-08-28/ibovespa-futures-rise-as-commodities-gain-boosts-export-outlook.html | 8 | 28 | 74cee98510b6d332c6c0d27233ad894c743bfee7 | The Ibovespa dropped for a third day
as planemaker Embraer SA (EMBR3) led losses among exporters on
speculation that a strengthening local currency will erode
revenue from outside Brazil . Oil company OGX Petroleo e Gas Participacoes SA contributed
the most to the index’s decline. Iron-ore producer Vale SA (VALE3) , the
measure’s heaviest-weighted stock, followed metals lower.
Retailer B2W Cia. Digital was the best performer on the
benchmark as traders pared bets on higher borrowing costs. The Ibovespa dropped 0.4 percent to 49,866.92 at the close
of trading in Sao Paulo, with 33 of 71 stocks lower, after
erasing an earlier advance of 1 percent. The index’s 10-day
volatility, a measure of price swings, climbed to a two-week
high. The real appreciated 1.2 percent to 2.3437 per U.S. dollar
at 5:27 p.m. local time as the central bank’s intervention
supported the currency. “Shares of exporters, such as Vale, have benefited from
the real’s depreciation, and now there’s a correction, with the
central bank acting more aggressively in the currency market ,”
Joao Pedro Brugger, a portfolio manager at Leme Investimentos,
said in a phone interview from Florianopolis, Brazil. The real has rallied 3.9 percent since Aug. 22, when the
central bank announced a $60 billion intervention program. It is
still down 11 percent in the past three months, the worst
performance among major Latin American currencies. Embraer, Vale Embraer, which gets 86 percent of its revenue outside
Brazil , slipped 1.6 percent to 19 reais. OGX sank 17 percent to
57 centavos. Vale fell 1.5 percent to 31.25 reais. The Bloomberg
Base Metals 3-Month Price Commodity Index declined 0.8 percent. B2W jumped 6.3 percent to 13.29 reais. Swap rates on
contracts due in January 2015 fell 10 basis points, or 0.10
percentage point, to 10.2 percent. The Ibovespa has gained 11 percent from this year’s low on
July 3 as higher commodities prices and a weaker real boosted
raw-material exporters. Brazil’s benchmark gauge climbed 7.3
percent in dollar terms during this period, compared with a
decline of 0.2 percent for the MSCI Emerging Markets Index of 21
developing nations’ equities. Trading volume of stocks in Sao Paulo was 7.03 billion
reais today, according to data compiled by Bloomberg. That
compares with a daily average of 7.75 billion reais this year
through Aug. 26, according to data compiled by the exchange. To contact the reporter on this story:
Ney Hayashi in Sao Paulo at
[email protected] To contact the editor responsible for this story:
David Papadopoulos at
[email protected] | 2013 | ibovespa-futures-rise-as-commodities-gain-boosts-export-outlook |
Pesek's View From Asia | By William Pesek | 2013-08-28T09:00:59Z | http://www.bloomberg.com/news/2013-08-28/pesek-s-view-from-asia.html
Good morning. Here's my take on some of the stories driving the debate in politics, finance and social issues across Asia today: Syria worries hit Asian markets . As if Asia didn’t already have enough to worry about, the risk of U.S. military action in the Middle East is hitting markets. Credit risk rose along with oil prices today as investors worked tensions in Syria and elsewhere in the volatile region into their models and assumptions about world economic growth. India's rupee hit another record low at 68 to the dollar, worsening an already swollen bill for energy imports. Geopolitical uncertainty is one thing, but an imponderable such as this one is the last thing that Asia, already fretting another currency crisis, needs. Time to cancel those late summer vacations. Vietnam’s Internet censorship rankles 21 governments. Nearly two dozen governments from Africa, the Americas, Asia, Europe and the Middle East | 8 | 28 | d33d8567d54b40c9b8dcd265c274fa0b | 2013 | pesek-s-view-from-asia |
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Switzerland Close to Resolving Undeclared U.S. Accounts | By Elena Logutenkova | 2013-08-28T09:02:27Z | http://www.bloomberg.com/news/2013-08-28/switzerland-close-to-resolving-undeclared-u-s-accounts.html | 8 | 28 | ce75fcdadb984896b06b692ccb9d8b2e | Switzerland is moving closer to an
agreement with the U.S. to settle a dispute over banks including
Credit Suisse Group AG (CSGN) and Julius Baer Group Ltd. (BAER) allegedly
helping American clients avoid taxes. The Swiss Bankers Association’s board of directors, which
includes executives of the country’s largest lenders, met Aug.
26 to discuss a proposed program to resolve the issue, Sindy Schmiegel Werner, a spokeswoman for the Basel, Switzerland-based
group, said by telephone today. “The board stands behind the program even though it’s a
painful measure to take,” she said, declining to elaborate. The Swiss government is due to decide today whether to
accept the accord, paving the way for a resolution for all Swiss
banks that would involve fines and disclosure of U.S. client
data, Tages-Anzeiger reported. Acceptance of the proposal would
also help about a dozen wealth managers already under
investigation in the U.S., including Credit Suisse and Julius
Baer, move forward with their individual agreements. Roland Meier, a spokesman for the Swiss Finance Ministry in
Bern, declined to comment on the Tages-Anzeiger report. The new proposal comes after the Swiss parliament in June
rejected a bill that would have freed the industry to send
information to the U.S. The bill, supported by Swiss banks, was
aimed at helping firms not yet part of the U.S. probe avoid an
indictment like that of Wegelin & Co., which pleaded guilty in
January to helping American clients dodge taxes. Paying Fines Banks that aren’t currently under investigation that may
have breached U.S. laws with undeclared assets would have to pay
fines on accounts exceeding 50,000 francs ($54,407) under the
proposal, according to Tages-Anzeiger. The fines will depend on when the account was opened, with
20 percent for those that existed before August 2008, 30 percent
for the period between Aug. 1, 2008 and Feb. 28, 2009 and 50
percent thereafter, according to the Swiss newspaper. UBS AG, the country’s biggest bank, agreed in February 2009
to pay $780 million and disclose names of American clients to
avoid criminal prosecution for helping customers evade taxes.
That deal and the voluntary disclosures by Americans that
followed allowed the U.S. to make a case against other Swiss
wealth managers. Information on American clients from August 2008 would be
made available to the U.S. if requested through existing double-taxation agreements, Tages-Anzeiger said. Banks that didn’t have
undeclared American accounts will have to prove that they didn’t
break any U.S. laws, it said. To contact the reporter on this story:
Elena Logutenkova in Zurich at
[email protected] To contact the editor responsible for this story:
Frank Connelly at
[email protected] | 2013 | switzerland-close-to-resolving-undeclared-u-s-accounts |
Cameron Gives Ground on Syria Promising Second Vote | By Robert Hutton and Thomas Penny | 2013-08-28T23:01:00Z | http://www.bloomberg.com/news/2013-08-28/cameron-gives-ground-over-syria-promising-lawmakers-further-vote.html
David Cameron backed down from asking lawmakers for immediate support today for possible U.K. military strikes on Syria after the Labour opposition demanded a delay until United Nations inspectors report on the alleged use of chemical weapons. The premier had intended to call in a House of Commons debate starting at 2:30 p.m. in London for backing for a military response to what he says is clear evidence of a chemical-weapons attack near Damascus last week by forces loyal to President Bashar al-Assad. He pledged instead last night to hold a further vote in Parliament before any action is taken. The debate is scheduled to last nearly eight hours before a vote after 10 p.m. in London. The government announced its change of heart 90 minutes after the opposition Labour Party tabled an amendment opposing any U.K. military action before the inspectors, who are now on the ground in Syria, make their report. Some in the governing Conservative and Liberal Democrat parties are wary of supporting attacks, raising the prospect that Cameron might have been defeated. “We are ensuring the House of Commons has the final say before any direct British involvement -– one vote tomorrow, and another one if and when we are asked to participate directly,” Deputy Prime Minister Nick Clegg said in an e-mail to members of his Liberal Democrat party last night. “Any case for international action must be taken to the UN in an effort to achieve as great an international consensus as possible.” Iraq Shadow For many, the shadow of Tony Blair ’s 2003 decision to join the invasion of Iraq to oust Saddam Hussein hangs over the debate. That cost Blair popularity, eventually leading to his resignation as premier and Labour Party leader in 2007. In the fallout, Cameron has tried to position himself as a pragmatist, rather than an idealist, in foreign affairs. “I’m normally really hawkish, but I’m not feeling that way on this one,” Chris Heaton-Harris, a lawmaker from Cameron’s Conservatives, said in a telephone interview. “My voters are in the same place as I am | 8 | 28 | 91b47c68593a4c42927c5461c67febd4 | 2013 | cameron-gives-ground-over-syria-promising-lawmakers-further-vote |
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Perfect Pizza, Barclays Sparked Franny’s Rise: Interview | By Laurie Muchnick | 2013-08-28T04:01:00Z | http://www.bloomberg.com/news/2013-08-28/perfect-pizza-barclays-sparked-franny-s-rise-interview.html
Francine Stephens and Andrew Feinberg are creating a food empire on a grimy stretch of Brooklyn ’s Flatbush Avenue. Ten years ago the couple opened Franny’s, an acclaimed Italian restaurant that recently moved a few blocks away and doubled in size. That was joined in 2009 by Bklyn Larder , a cheese and provisions shop that stocks many delicacies made by Brooklyn’s booming artisanal food producers. They’ve just published a gorgeous cookbook, “ Franny’s: Simple Seasonal Italian ” (Artisan, $35). And in September, they’re planning to open a new trattoria, Marco’s, in the old Franny’s space. Over lunch at Bloomberg, they discussed pizza dough, their kids and drinking cocktails at Applebee’s. Muchnick: What makes your pizza so special? Is there a secret? Stephens: It’s all in the book. We have no secrets. Feinberg: It’s simple | 8 | 28 | 2b43fbc0233b4e53bfbde44b03e44c03 | 2013 | perfect-pizza-barclays-sparked-franny-s-rise-interview |
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Northeast Asia LNG Prices Drop on Ample Supply, Weak Demand: WGI | By Chou Hui Hong | 2013-08-28T01:45:51Z | http://www.bloomberg.com/news/2013-08-28/northeast-asia-lng-prices-drop-on-ample-supply-weak-demand-wgi.html | 8 | 28 | cf3ad23239df73d7ef2272c2b4fa1167be5adeb4 | Liquefied natural gas prices for
Northeast Asia dropped this week due to ample supply and reduced
demand for spot cargoes, according to Energy Intelligence Group. The cost of LNG for delivery over the next four to eight
weeks was $15.25 per million British thermal units in the period
ended Aug. 26, down from $15.40 the previous week, the New York-based research company said on the website of its World Gas
Intelligence publication. Southwest Europe gas declined to
$11.65 from $11.90. LNG prices are forecast to fall this week, according to
four of five traders surveyed by Bloomberg News through Aug. 23.
Asian buyers typically purchase fewer cargoes in September and
October as power consumption drops with cooler temperatures. Buyers in North Asia have large inventories of gas, which
has reduced demand for spot shipments. Utilities in Japan , the
world’s largest buyer of LNG, need as much as two cargoes in
October, WGI said. There may be spot LNG shipments available from Russia ,
Indonesia, Brunei, Malaysia, the Middle East and North Africa to
meet demand for October, according to the research company. Nigeria LNG Ltd., Africa’s biggest exporter of the fuel,
closed a tender Aug. 17 to sell two cargoes loading in
September. One shipment was awarded to Malaysia’s state-owned
oil and gas producer, Petroliam Nasional Bhd., which sent the
tanker Seri Bijaksana to load the supercooled gas, a company
official said Aug. 26. Deliveries from Nigeria LNG resumed last
month after the company lifted a force majeure. Trinling Ltd. and Point Fortin LNG Exports Ltd., gas
companies from Trinidad & Tobago , are separately offering to
sell one cargo each for September loading with their tenders
closing Aug. 23 and Aug. 26, respectively, Bloomberg reported
earlier. To contact the reporter on this story:
Chou Hui Hong in Singapore at
[email protected] To contact the editor responsible for this story:
Alexander Kwiatkowski at
[email protected] | 2013 | northeast-asia-lng-prices-drop-on-ample-supply-weak-demand-wgi |
U.S. Stocks Rise as Energy Shares Gain Amid Syria Concern | By Nick Taborek and Namitha Jagadeesh | 2013-08-28T20:54:10Z | http://www.bloomberg.com/news/2013-08-28/u-s-stock-futures-little-changed-before-home-sales-data.html | 8 | 28 | 582d7e97ac7442d6bf8f82303285209c | U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding from an eight-week low, as energy shares rallied and investors watched developments on Syria . Chevron Corp. and Exxon Mobil Corp. jumped more than 2.3 percent. TiVo (TIVO) Inc. climbed 5.6 percent after the maker of digital-video recorders posted a profit. Joy Global Inc. lost 4.7 percent as the mining equipment maker said orders for new equipment are declining. PulteGroup Inc. and D.R. Horton Inc. declined at least 1.2 percent as pending sales of existing homes unexpectedly fell in July. The S&P 500 rose 0.3 percent to 1,634.96 at 4 p.m. in New York . The index closed just short of its average level for the past 100 days of 1,638.27, after slipping below it yesterday for the first time since June. The Dow Jones Industrial Average advanced 48.38 points, or 0.3 percent, to 14,824.51. “We’re simply just seeing a little bit of bounce back from what was very bad action yesterday,” Walter Todd , who oversees about $950 million as chief investment officer of Greenwood Capital Associates LLC in Greenwood, South Carolina , said by phone. “There are probably starting to be opportunities that are being created in certain segments of the market as a result of this sell-off, and investors are wisely looking to see if they can take advantage of some of those.” The S&P 500 slid 1.6 percent yesterday to the lowest level since July 3 amid concern the U.S. will take action against Syria. The U.S. and the U.K. today said they are prepared to take military action against Syria without authorization from the United Nations Security Council . ‘Appropriate’ Steps After Russia objected to a UN resolution offered by the U.K. authorizing action to protect civilians, a State Department spokeswoman said the U.S. will take “appropriate” steps without the international body’s approval. The U.S. and its NATO allies began presenting their justification for military action as they advanced plans for launching strikes and prepared evidence that the Syrian government used chemical weapons on its own people. “This is an environment where people are really focused on one variable which is going to dominate all others, and that, today, is Syria,” Lawrence Creatura , a Rochester, New York-based fund manager at Federated Investors Inc., which oversees about $380 billion, said in a phone interview. “The reflex is to sell during times of sudden unexpected conflict. Weakness derived from temporary events can often times be a great buying opportunity.” Fed Stimulus The S&P 500 has lost 4.4 percent from a record high on Aug. 2 amid growing speculation the Federal Reserve will reduce its monthly bond buying. Minutes of the central bank’s July meeting released Aug. 21 showed policy makers supported stimulus cuts this year if the economy improves. Fed stimulus helped push the S&P 500 up as much as 153 percent from its March 2009 low, as better-than-estimated corporate earnings also fueled gains. Data today showed fewer Americans signed contracts in July to buy previously owned homes. The index of pending home sales dropped 1.3 percent, the most this year, after a 0.4 percent decrease in June, according to figures from the National Association of Realtors. Economists forecast no change in the gauge from the month before, according to a median estimate in a Bloomberg survey. About 5.2 billion shares changed hands on U.S. exchanges. Trading volume is heading for the second-slowest month in at least five years, according to data compiled by Bloomberg. An average of about 5.5 billion shares changed hands each day this month. That’s about 80 million shares more than last August. Volatility Index The Chicago Board Options Exchange Volatility Index (VIX) , or VIX, fell 1.7 percent to 16.49. The equity volatility gauge has surged 39 percent since a five-month low on Aug. 5. Seven out of 10 main industry groups in the S&P 500 rose, with energy companies jumping 1.8 percent to pace advances. Chevron advanced 2.5 percent to $121.81. Exxon Mobil rallied 2.3 percent to $88.84. Marathon Oil Corp. increased 3.7 percent to $34.60. Oil futures climbed 1 percent to the highest in two years. TiVo advanced 5.6 percent to $11.58 after reporting second-quarter net income of $268.9 million, including legal settlements, compared with a $27 million loss a year earlier. Chief Executive Officer Tom Rogers said in an interview the company will be profitable for the remainder of the fiscal year ending January and through the following year. Zale, Express Avago Technologies Ltd. surged 4.7 percent to $38.28. The supplier of components for wireless communications reported third-quarter revenue of $664 million, exceeding the $617.25 million average forecast of analysts surveyed by Bloomberg. Zale Corp. rose 30 percent to $11.63, the highest level since 2008. The jewelery retailer reported fourth-quarter revenue that beat analyst estimates as same-store sales jumped 5.6 percent. Express Inc. (EXPR) gained 6.6 percent to $21.10. The specialty retailer said same-store sales rose 6 percent in the second quarter, beating analysts’ estimates, and raised its profit forecast. Tiffany & Co. retreated 4.4 percent to $77.25, extending its loss for the week so far to 5.8 percent. The world’s second-largest luxury jewelry retailer yesterday reported second-quarter sales that were short of analyst estimates. Joy Global lost 4.7 percent to $48.89. The mining equipment producer’s CEO, Mike Sutherlin, said the market “has become even more challenging,” as customers’ declining cash flows are resulting in “significantly” reduced capital expenditures . Caterpillar Inc. slid 0.3 percent to $82.45. An S&P index of homebuilders fell 1.2 percent. PulteGroup lost 1.4 percent to $15.38 while D.R. Horton declined 1.2 percent to $17.77. Taser International Inc. (TASR) fell 5.9 percent to $11.15, after rising 38 percent in the past 11 trading days. The maker of stun guns declined after JPMorgan analysts downgraded the shares to neutral from overweight. To contact the reporters on this story: Nick Taborek in New York at [email protected] ; Namitha Jagadeesh in London at [email protected] To contact the editors responsible for this story: Andrew Rummer at [email protected] ; Lynn Thomasson at [email protected] | 2013 | u-s-stock-futures-little-changed-before-home-sales-data |
U.S. Open Tennis Play Suspended for Second Time as Rain Begins | By Mason Levinson | 2013-08-28T19:23:28Z | http://www.bloomberg.com/news/2013-08-28/u-s-open-tennis-play-suspended-for-second-time-as-rain-begins.html | 8 | 28 | 548ec165460f0e3ff8c57ac466a1c6702f2973e3 | U.S. Open play was suspended after
resuming for 14 minutes as rain began to fall at the National
Tennis Center in New York. The tournament was held up for almost two hours earlier
today before it restarted. So far, weather has forced
suspensions on two of the three days of the event. 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] | 2013 | u-s-open-tennis-play-suspended-for-second-time-as-rain-begins |
Rupee's Swoon Dizzies Indians | By Chandrahas Choudhury | 2013-08-28T23:15:45Z | http://www.bloomberg.com/news/2013-08-28/rupee-s-swoon-dizzies-indians.html
For most of 2013, the Indian rupee, like the currencies of almost all emerging economies, has been steadily losing ground against the dollar. Over the last week, though, this drift has become a disturbance as the rupee has gone into free fall, repeatedly plumbing new lows and sending stock markets into a panic. The rupee fell by more than 2 percent against the dollar on both Tuesday and Wednesday this week, each time the biggest single-day declines in its value for more than two decades. The rupee has been hard hit by a combination of adverse global and domestic triggers , including India's economic slowdown (growth is down to 5 percent annually), an unsustainable current account deficit , high inflation and the flow of capital away from emerging markets after the announcements from the U.S. Federal Reserve in June that it was tapering its quantitative easing program. At beginning of the year, the dollar traded at 55 rupees; it was just above 60 rupees at the beginning of August. It has advanced more than 10 percent this month to just over 68 rupees, and no one believes the end is in sight. These events bring back memories of India's balance-of-payments crisis of 1991 , the last time the rupee fell this steeply against the dollar, and suggest that hard times may be around the corner. Although India's foreign-exchange reserves are far more secure now, the rupee's infirmity has hogged headlines all month, spooking stock markets, derailing confidence in India's growth story, prompting the central bank to take a series of short-term measures to shore up the currency and sucking the government into a series of counter-productive measures to control capital flight. Many middle-class Indians are enraged because they view the rupee's decline as a consequence of long-term economic mismanagement and political populism by the ruling center-left UPA coalition government, which has been in power since 2004. The prevailing consensus is that the UPA has privileged expensive social security measures with a populist tinge | 8 | 28 | 2718a463709f00a7f0a397e8c3c5658b20c37509 | 2013 | rupee-s-swoon-dizzies-indians |
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F&N Jumps Most in 4 Months on Property Spinoff | By Jonathan Burgos | 2013-08-28T09:24:08Z | http://www.bloomberg.com/news/2013-08-28/f-n-rises-to-5-week-high-on-property-spin-off-singapore-mover.html | 8 | 28 | 8bf71083b5d3521038105df9bb89809460d3e9d7 | Fraser & Neave Ltd. (FNN) , controlled by
Thailand ’s richest man, climbed the most in four months on plans
to spin off its property business through a Singapore listing at
the end of the year. Shares of the 130-year-old company with investments from
food and beverage to publishing climbed 4.2 percent to S$5.72 at
the close in Singapore trading, the biggest jump since April 25.
The company will offer two shares of its unit Frasers
Centrepoint Ltd. for every stock held, it said in a statement
yesterday. F&N, as the company is known, is spinning off a unit with
S$9 billion ($7 billion) of assets as of June, allowing both
companies to focus on their separate expansion strategies. The
move follows the S$13.8 billion takeover earlier this year by
Thai billionaire Charoen Sirivadhanabhakdi. “This makes the company a more transparent organization,”
Jonathan Foster, Singapore-based director of Global Special
Situations at Religare Capital Markets, said by phone, adding
that he plans to buy F&N shares on the spin off. “This helps
enhance valuations. Conglomerates are always treated with a bit
of a discount.” The listing of the property arm is expected in November or
December, according to the statement, and the two companies will
be traded separately on the Singapore exchange. Frasers Centrepoint is also considering plans for a
hospitality trust, according to the statement. It has a S$2.4
billion pipeline of commercial and retail properties as well as
S$1.65 billion worth of hospitality assets that could be
injected into its property trusts, Lim Ee Seng, chief executive
officer of Frasers Centrepoint, said in a briefing yesterday. Charoen has a net worth of $6.9 billion, according to the
Bloomberg Billionaires Index. DBS Group Holdings Ltd., United Overseas Bank Ltd. (UOB) and
Morgan Stanley are financial advisers for the transaction. To contact the reporter on this story:
Jonathan Burgos in Singapore at
[email protected] To contact the editors responsible for this story:
Andreea Papuc at
[email protected] ;
Sarah McDonald at
[email protected] | 2013 | f-n-rises-to-5-week-high-on-property-spin-off-singapore-mover |
U.S. Banker Deploys Polygraph to Thwart Kazakhstan Theft | By Nariman Gizitdinov and Jason Corcoran | 2013-08-28T21:01:00Z | http://www.bloomberg.com/news/2013-08-28/u-s-banker-deploys-polygraph-to-thwart-kazakhstan-theft.html
When Michael Eggleton arrived in Kazakhstan in 2009 after three banks defaulted on about $20 billion in debt, he thought something drastic had to be done. So the former Merrill Lynch & Co. and Credit Suisse Group AG banker, who had been appointed chief executive officer of Almaty-based Eurasian Bank JSC, flew a polygraph machine into the Central Asian country to bolster client trust. The bank, Kazakhstan’s 10th largest, was losing money, and Eggleton’s predecessor, Zhomart Yertayev, had been arrested on suspicion of embezzlement in connection with $1.1 billion in losses at Alliance Bank, which he led from 2002 to 2007. Yertayev, who denied wrongdoing, was convicted in 2011. “We had just come through one of the biggest economic crises in the world, and I had just arrived in a new country,” the 44-year-old, U.S.-born Eggleton said in an interview in Almaty in July. “There was no confidence in the banks. I was trying to address concerns of the market, and internally I saw it was going to be a war collecting money back from people.” Kazakhstan, with about 3 percent of the world’s proven oil reserves and 1 percent of its gas, ranks 133rd out of 176 nations on Transparency International’s 2012 Corruption Perceptions Index , behind Uganda and Nicaragua . Graft is pervasive in banking, with every seventh borrower saying they paid a bribe to secure a loan, according to a poll conducted last year by Sange Research Center in Almaty. Bribery Probe Eurasian Bank’s owners, Alexander Machkevitch , Alijan Ibragimov and Patokh Chodiev, also control London-based mining company Eurasian Natural Resources Corp. (ENRC) The ferrochrome, iron ore and aluminum producer is under investigation by the U.K.’s Serious Fraud Office for alleged bribery in Kazakhstan and the Democratic Republic of Congo. The firm said this month that it will “cooperate fully” with the probe. The polygraph | 8 | 28 | 3c7a2ac4df6948478ad2be5cb51afd9a | 2013 | u-s-banker-deploys-polygraph-to-thwart-kazakhstan-thef |
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Mercator Loss Narrows on Cost Cuts as Revenue Declines | By Boris Cerni | 2013-08-28T10:34:30Z | http://www.bloomberg.com/news/2013-08-28/mercator-loss-narrows-on-cost-cuts-as-revenue-declines.html | 8 | 28 | 4bc4a7a2807a5c9e8b00a2ee09beb68c6667216d | Mercator Poslovni Sistem d.d ., the
Slovenian retailer due to be sold to Croatia ’s Agrokor d.d.,
narrowed its first-half loss on lower operating costs as the
recession in the region continued to hurt sales. Its loss shrank to 15 million euros ($20 million) from 19
million euros a year earlier, the Ljubljana-based company said
in a regulatory statement today. Revenue dropped 3.3 percent to
1.4 billion euros, with the biggest decline in Croatia. Serbia
saw an increase in revenue of 4.2 percent. “Lower revenue is in particular a result of slow economic
activity and lower sale of seasonal products due to
uncharacteristic weather during the first months of this year’s
spring,” the company said. Sales were also hurt by a withdrawal
from Bulgaria and Albania and the closing of some units, it
said. It cut operating costs by 18.6 million euros. Mercator, the biggest retail chain in the Balkans, is
getting out of markets in the region where it expanded before
the financial and economic crisis hit in 2008. Its owners,
Slovenian banks and drink maker Pivovarna Lasko d.d., agreed to
sell a 53 percent stake of the retailer to Agrokor in June for
240 million euros, or 120 euros a share. Mercator shares declined 2 euros, or 2 percent, to 101.50
euros at 12:13 p.m. in Ljubljana, giving the company a market
value of 380 million euros, data compiled by Bloomberg shows.
The stock has declined 11.4 percent from the start of the year. Debt Reduction The company wants to reach a debt restructuring deal with
its creditor banks, mostly foreign-owned, by the end of the year
to reduce 990 million euros of debt, Toni Balazic, the chief
executive officer said today in Ljubljana. Lenders are awaiting
the impact of the Agrokor takeover on Mercator before the debt
agreement, he said. Slovenia’s economy will only recover in 2015, according to
the government’s economic institute, after shrinking an annual
4.8 percent in the first quarter. Croatia’s gross domestic product will contract 1 percent
this year and grow 0.2 percent in 2014, according to the
European Commission. By comparison, Serbia should grow between
1.5 percent and 2.5 percent this year and next, Moody’s
Investors Service said on Aug. 26. Agrokor will secure financing for the Mercator purchase
“because it’s a good deal,” company President Ivica Todoric
said in June. The Croatian company will boost capital and may
offer Mercator shares in a public offering by the start of next
year, he said. Acquisition Cost The transaction cost, split between the group of sellers
and Mercator, is “well below” 1 million euros, Balazic said
today. “All stakeholders involved in the transaction will strive
to close the acquisition as a failed deal would put enormous
pressure on Mercator’s debt and a major capital injection would
have to follow,” Andraz Grahek, managing partner at Capital
Genetics in Ljubljana said in an e-mail. “Completing the
transaction is the only way that makes sense, because it unlocks
synergies, especially in Croatia, which has been a never ending
nightmare for Mercator’s operations.” To contact the reporter on this story:
Boris Cerni in Ljubljana at
[email protected] To contact the editor responsible for this story:
James M. Gomez at
[email protected] | 2013 | ercator-loss-narrows-on-cost-cuts-as-revenue-declines |
Baum's View on Money | By Caroline Baum | 2013-08-28T11:09:35Z | http://www.bloomberg.com/news/2013-08-28/baum-s-view-on-money.html | 8 | 28 | 393251541c2a4a6a17a9ef3014dc2f56668e194f | Good morning, all. Here's what I'm reading today on a variety of economic, and geo-political, issues. As far as problems go, this one isn't bad An unemployment rate of 3 percent, a "gusher of jobs," soaring tax revenues: all a result of oil and gas exploration in North Dakota's Bakken formation. The challenge is to develop the infrastructure and services to support the energy industry without falling victim to the "Dutch disease," or the consequences associated with a natural resource discovery, according to the Federal Reserve Bank of Minneapolis. I suspect many states would be happy to swap problems with North Dakota. Confused about various house price indexes ? Housing economist Tom Lawler explains the ins and outs of the various indexes that measure the change in home prices: from repeat sales to hedonic pricing to the different weightings to "REO" (foreclosure) sales. Home prices are rising across the board, but it helps to know just how an index is constructed. Some things never change September is already shaping up to be a nail-biter in the nation's capital. Congress will have to pass some sort of continuing resolution to the keep the government running after Sept. 30. The debt ceiling needs to be raised by mid-October. And a variety of tax-related measures have to be addressed. If you're waiting for Congress to dig deep and come up with a grand bargain, forget about it, says the Tax Policy Center. Why tackle the tough choices of tax and entitlement reform when it's "so much easier to battle over self-made short-term crises?" This gives new meaning to waste, fraud and abuse Remember the Troubled Asset Relief Program, which directed funds to banks in an effort to stabilize the financial system during the crisis? Darryl Layne Woods, former chairman and chief financial officer of Mainstreet Bank in Ashland, Missouri, admitted that he used $381,487 in bank bailout funds to buy a luxury condo in Fort Meyers, Florida. No doubt the condo provided some short-term stability to Woods's family. Full Disclosure It may not increase the odds of her nomination for Fed chairman, but Janet Yellen has a stamp collection worth $15,000 to $50,000, according to her financial disclosure forms. All seven governors are millionaires, which shouldn't be a real surprise. By the time an individual is tapped to serve on the Fed board, she has generally distinguished herself in her field, be it economics or banking. And in this country, "distinguished" still carries a monetary value. As clear as mud If you ever wondered why the Middle East is such an enigma, consider the chart created by an Egyptian blogger and reprinted in the Washington Post. If you have trouble following the arrows, try reading the letter to the editor of the Financial Times, in which the writer outlines the intricate network of relationships among nations. (Caroline Baum is a Bloomberg View columnist. Follow her on Twitter.) | 2013 | baum-s-view-on-money |
Aussie, N.Z. Dollars Touch 3-Week Lows as Syria Curbs Risk Bid | By Kristine Aquino | 2013-08-28T07:03:36Z | http://www.bloomberg.com/news/2013-08-28/aussie-n-z-dollars-touch-3-week-lows-as-syria-curbs-risk-bid.html | 8 | 28 | 7869bdfa72fe4fe59a9a67d7cfd278ad | The Australian dollar dropped to a
three-week low as global equity declines curbed demand for
higher-yielding assets amid prospects of military action against
Syria . The Aussie slid versus all of its 16 major counterparts and
touched a three-year low against the euro as the U.S., France
and the U.K. signaled a possible armed response against Syria
after concluding the government used chemical weapons against
civilians. New Zealand’s currency touched a three-week low as
volatility headed for the highest closing level in more than a
month amid a selloff in emerging-market assets. “The market is bracing for an escalation of Middle East
tensions and a possible strike against Syria,” said Ray Attrill, the global co-head of currency strategy at National
Australia Bank Ltd. in Sydney. “There’s a bit of an emerging-market contagion flowing through the Aussie and the kiwi.” The Australian dollar slid 0.9 percent to 89.08 U.S. cents
as of 4:50 p.m. in Sydney after touching 89.02 cents, the lowest
since Aug. 5, when it dropped to a three-year low. Benchmark 10-year yields fell three basis points, or 0.03 percentage point,
to 3.91 percent. The Aussie touched A$1.5031 per euro, the weakest since May
2010, before trading 0.8 percent lower at A$1.5023. New Zealand’s currency reached 77.48 U.S. cents, the
weakest since Aug. 5, before buying 77.60 cents, 0.5 percent
lower from yesterday’s close. The nation’s two-year swap rate, a
fixed payment made to receive floating rates, was little changed
at 3.39 percent from 3.38 percent yesterday, the lowest close
since Aug. 8. Stocks Fall The MSCI Asia Pacific Index of shares fell 1.6 percent. The
Standard & Poor’s 500 Index tumbled 1.6 percent yesterday. U.K. Prime Minister David Cameron said yesterday that while
no decision has been made on a course of action against Syria,
it would be legal and proportionate. He summoned Parliament back
from a recess to debate the matter. U.S. President Barack Obama plans to release this week an
intelligence assessment of the alleged Aug. 21 attack outside of
Damascus, and the administration has begun consultations with
U.S. congressional leaders. Exchange data compiled by Bloomberg show overseas investors
have pulled $579.5 million from Indian stocks this month as of
Aug. 26, as the nation’s currency plunged to a record. They’ve
offloaded $464.2 million of Indonesian equities and sold $1.2
billion of Thai shares. The Australian dollar has slumped 12 percent this year, the
worst performer among 10 developed-nation currencies tracked by
Bloomberg Correlation-Weighted Indexes. Its New Zealand peer has
fallen 2.4 percent. Higher Volatility Volatility on one-month Aussie options climbed for a third
day, rising 39 basis points to 13.56 percent, set for the
highest close since July 8. The equivalent figure for kiwi
dollar options rose jumped 36 basis points to 13.91 percent,
headed for the most since July 15. There’s a 90 percent chance Reserve Bank of Australia
policy makers will keep benchmark borrowing costs at a record-low 2.5 percent when they next meet on Sept. 3, interest-rate
swaps data compiled by Bloomberg show. Traders see a 61 percent
probability officials will cut the rate to 2.25 percent or less
by their Dec. 3 gathering. The South Pacific nation’s statistics bureau said today
construction work done in the three months through June fell 0.3
percent from the previous period, when it declined a revised 1.9
percent. Economists surveyed by Bloomberg News predicted a 1
percent advance. To contact the reporter on this story:
Kristine Aquino in Singapore at
[email protected] To contact the editor responsible for this story:
Rocky Swift at
[email protected] | 2013 | aussie-n-z-dollars-touch-3-week-lows-as-syria-curbs-risk-bid |
U.K. Opposition Sets Out Conditions for Backing on Syria | By Robert Hutton and Thomas Penny | 2013-08-28T15:35:29Z | http://www.bloomberg.com/news/2013-08-28/u-k-opposition-sets-out-conditions-for-backing-on-syria.html
U.K. opposition leader Ed Miliband
has told Prime Minister David Cameron his Labour Party won’t
vote for military action over Syria without United Nations
involvement, as a poll showed Britons opposed missile strikes by
two to one. Miliband offered tentative support for possible attacks
after meeting Cameron yesterday. His foreign-affairs spokesman,
Douglas Alexander, today laid out Labour’s conditions for
supporting Cameron in a vote in Parliament tomorrow. Cameron has
recalled lawmakers from their summer recess after last week’s
alleged chemical-weapons attacks by forces loyal to President
Bashar al-Assad that Syrian opposition groups say killed 1,300
people. “We want to see the report of the weapons inspectors who
are presently on the ground presented to the Security Council of
the United Nations prior to action being taken,” Alexander told
the BBC. “It is not simply an issue of confirmation that
chemical weapons were used, but there is also an issue of the
responsibility | 8 | 28 | 8da2e2866d821f9711940bb21e5133a8db32a650 | win approval from the House of Commons, as some of his own
Conservative lawmakers have publicly expressed reluctance to
back such a move. It’s 10 years since Labour Prime Minister Tony Blair led Britain into the war in Iraq to oust Saddam Hussein, a
move that cost him popularity and eventually led to his
resignation in 2007. Legal Advice The evidence behind U.K. and U.S. assertions that the
Syrian government is responsible for the attacks should be
presented to Parliament, Alexander said. Labour also wants
Cameron to publish the legal advice he has been given about
possibly military action. A YouGov Plc poll published in today’s Sun newspaper found
50 percent of respondents saying they opposed missile strikes,
while 25 percent said they were in favor. YouGov questioned
1,991 people Aug. 26 and yesterday for the poll, for which no
margin of error was specified. “The danger is we get dragged into a civil war in the
Middle East,” Diane Abbott, who ran against Miliband for the
party leadership in 2010 and is now a Labour health spokeswoman,
told the BBC . “The idea that Assad is going to wake up after
the bombing and say ‘OK, I’m going to stop the humanitarian
abuses,’ I think that’s a little bit naive.” Conservative lawmakers including John Baron, John Redwood
and Sarah Wollaston have also publicly said they have doubts
about the effectiveness of military action. ‘Another Quagmire’ “There is no public appetite for anything that risks
dragging our armed forces into another quagmire,” YouGov
President Peter Kellner said in an e-mailed statement,
highlighting the failure of military interventions to bring
peace to Iraq and Afghanistan . “A short, sharp, remote-launched
missile attack, and possibly the enforcement of a no-fly zone,
represent the outer limits of what might be acceptable, and our
latest poll shows that even that isn’t certain.” The prime minister hasn’t yet given details of the motion
that will be put to members of Parliament tomorrow or said
whether it will be binding. In the past, Cameron has said that
British lawmakers should have the final say on going to war. Justin Welby, the Archbishop of Canterbury, said any
decision on military action should not be rushed. “The things which MPs will have to bear in mind in what is
going to be a very, very difficult debate is firstly, are we
sure about the facts on the ground?” Welby said in an interview
with the Daily Telegraph newspaper. “Secondly, is it possible
to have a carefully calibrated response including armed force,
if you are sure about the facts on the ground, that does not
have unforeseeable ramifications across the whole Arab and
Muslim world?” To contact the reporters on this story:
Robert Hutton in London at
[email protected] ;
Thomas Penny in London at
[email protected] To contact the editor responsible for this story:
James Hertling at
[email protected] | 2013 | u-k-opposition-sets-out-conditions-for-backing-on-syria |
Rubber Declines for Second Day on Stronger Yen, Syria Tensions | By Supunnabul Suwannakij | 2013-08-28T02:18:59Z | http://www.bloomberg.com/news/2013-08-28/rubber-declines-for-second-day-on-stronger-yen-syria-tensions.html | 8 | 28 | f103db6f3899adde8b42eba4565b90e8e406925f | Rubber fell a second day as Japan’s
currency maintained its biggest gain in two months amid concern
that the U.S. will take military action against Syria . Rubber for delivery in January on Tokyo Commodity Exchange
retreated as much as 1.4 percent to 271.7 yen a kilogram ($2,795
a metric ton) and was 273.6 yen at 11:16 a.m. local time. The
contract for delivery in February, which started trading today,
was at 275.8 yen. The yen traded at 97.08 per dollar after climbing 1.5
percent yesterday. Asian stocks fell a second day as President
Barack Obama works with allies including the U.K. and France to
reach agreement on limited action against Syria after concluding
the regime used chemical weapons on civilians. The stronger
Japanese currency reduces the appeal of yen-based contracts. “It’s risk-off mode amid concerns of possible U.S.
military action on Syria,” said Naohiro Niimura, a partner at
research company Market Risk Advisory Co. in Tokyo. “The
stronger yen also hurt rubber.” Thailand’s rubber policy committee will consider ways to
support the industry, including a proposal by farmers to buy
sheet at 80 baht per kilogram, said Pakdiharn Himathongkham, a
government spokesman, yesterday. About 450 protesters blocked a
road and rail line in Nakhon Si Thammarat province, demanding
the government buy rubber at above-market rates. Rubber for delivery in January climbed 0.5 percent to
20,795 yuan ($3,398) a ton on the Shanghai Futures Exchange.
Thai rubber free-on-board gained 0.6 percent to 84.45 baht
($2.62) a kilogram yesterday, according to the Rubber Research
Institute of Thailand. To contact the reporter on this story:
Supunnabul Suwannakij in Bangkok at
[email protected] To contact the editor responsible for this story:
Brett Miller at
[email protected] | 2013 | rubber-declines-for-second-day-on-stronger-yen-syria-tensions |
Motiva Port Arthur Said to Perform Minor Repairs on Hydrocracker | By Lynn Doan | 2013-08-28T21:59:37Z | http://www.bloomberg.com/news/2013-08-28/motiva-port-arthur-said-to-perform-minor-repairs-on-hydrocracker.html | 8 | 28 | 8a7d6da8e760a91c7abed4e004f174a4d5c280e3 | Motiva Enterprises LLC’s Port
Arthur , Texas , refinery is performing minor repairs on a
hydrocracker that caught fire Aug. 17 and expects to restart it,
along with the plant’s largest crude unit, in a week or so, a
person familiar with the work said. The refinery is repairing electrical wiring at the
hydrocracker, which doesn’t appear to have been structurally
damaged in the blaze, said the person, who asked not to be
identified because the information isn’t public. The plant’s
325,000-barrel-a-day crude unit, taken out of service because it
feeds gasoil to the hydrocracker, will resume operations once
the cracker returns, the person said. Destin Singleton, a Houston-based spokeswoman for Motiva,
declined by e-mail to comment on the repairs. She said Aug. 19
that a unit was shut after “an operational issue” and that
several other units associated with it were either taken out of
service or are running at reduced rates. The Port Arthur refinery can process 600,000 barrels of
crude a day, making it the largest in the U.S., data compiled by
Bloomberg show. Motiva, a joint venture between refining units
of Royal Dutch Shell Plc (RDSA) and the Saudi Arabian Oil Co., finished
an expansion at the plant last year that allows it to handle
most crude grades, the company’s website shows. To contact the reporter on this story:
Lynn Doan in San Francisco at
[email protected] To contact the editor responsible for this story:
Dan Stets at
[email protected] | 2013 | otiva-port-arthur-said-to-perform-minor-repairs-on-hydrocracker |
China’s Stock-Index Futures Fall as Oil Gains on Syria Concerns | By Bloomberg News | 2013-08-28T01:27:08Z | http://www.bloomberg.com/news/2013-08-28/china-s-stock-index-futures-fall-as-oil-gains-on-syria-concerns.html
China’s stock-index futures fell as
oil prices jumped amid concern the U.S. will take military
action against Syria. Futures on the CSI 300 Index (SHSZ300) expiring in September lost 0.3
percent to 2,329.80 as of 9:15 a.m. local time. PetroChina Co. (601857) ,
the nation’s biggest oil company, will resume trading today
after the company said three senior managers resigned and were
under investigation by authorities. CSR Corp. and China CNR
Corp. (601299) , the biggest train makers, may decline after posting lower
profit. Air China Ltd. (601111) , the nation’s largest international
carrier, may advance after reporting higher net income. The Shanghai Composite Index (SHCOMP) climbed 0.3 percent to
2,103.57 yesterday, paring this year’s loss to 7.3 percent. The
CSI 300 Index rose 0.2 percent to 2,340.88. The Hang Seng China
Enterprises Index (HSCEI) retreated 0.9 percent. The Bloomberg China-US
Equity Index fell 1.6 percent in New York. The MSCI Asia Pacific Index dropped 1.1 percent today,
while crude rose to an 18-month high as the U.S., France and
Britain stepped closer to a military strike against Syria after
concluding the regime used chemical weapons against civilians. The Shanghai Composite is valued at 8.5 times its projected
12-month earnings, compared with the five-year average of 12.7
times, according to data compiled by Bloomberg. Trading volumes
in the index were 27 percent higher than the 30-day average
yesterday, according to data compiled by Bloomberg. PetroChina Probe PetroChina said in a statement yesterday the three
managers, including top executives at two units, are “currently
under investigation by relevant PRC authorities.” The three are Li Hualin, chairman of Kunlun Energy Co., an
oil and gas producer and distributor; PetroChina vice president
and general manager of its biggest oilfield, Ran Xinquan; and
Wang Daofu, chief geologist for PetroChina. “It is unclear whether the issues under investigation are
of a purely personal nature or related to the managers’
respective duties at PetroChina,” Citigroup Inc. analysts wrote
in a report. “We expect sentiment on the stock to be weak as
long as there is uncertainty over this issue.” CSR and China CNR may decline. CSR said first-half net
income dropped 24 percent from a year earlier while CNR said
profit fell 5.4 percent. Of the 178 Shanghai-listed companies that reported first-half earnings that Bloomberg tracks, 83 beat analyst estimates,
84 trailed and the rest were in line. Chinese publicly traded
companies are required to release first-half reports by the end
of August. Air China may advance. The carrier said first-half profit
rose 10 percent from a year earlier as currency gains from a
stronger yuan and income from its stake in Cathay Pacific
Airways Ltd. helped offset lower fares. In New York, Chinese solar stocks fell, with LDK Solar Co.
tumbling the most in three months after its cash balance dropped
to the lowest level since 2009 and second-quarter sales sank 51
percent. China Southern Airlines Co. widened the discount to its
Hong Kong shares after reporting an operating loss. | 8 | 28 | c8e4a737ba564803b81e0d2d99a9a631 | Zhang Shidong in Shanghai at
[email protected] To contact the editor responsible for this story:
Michael Patterson at
[email protected] | 2013 | china-s-stock-index-futures-fall-as-oil-gains-on-syria-concerns |
AGL Energy Delays Plans to Develop Power Plants on Weak Demand | By James Paton | 2013-08-28T02:40:41Z | http://www.bloomberg.com/news/2013-08-28/agl-energy-delays-plans-to-develop-power-plants-on-weak-demand.html | 8 | 28 | d84f588f22b053cf6c915355799049181175e455 | AGL Energy Ltd. (AGK) , Australia ’s second-biggest electricity retailer, is delaying power plants because
of lack of demand after taking a A$45.8 million ($41 million)
writedown on the assets. “There are a number of projects we’ve been working on for
some time, and in short, we don’t see those being developed any
time soon,” Managing Director Michael Fraser said today in a
phone interview from Sydney. “There’s plenty of generation
capacity around.” AGL wrote down the value of gas and renewable energy
projects including the Leafs Gully power station in New South
Wales and wind farms in South Australia , as part of A$441
million in impairments announced today. Electricity demand is
weak because of a slower economy, an increase in solar power use
and lower consumption as prices increase, AGL said. The oversupply in the electricity market also affects the
value of two power plants being sold by the New South Wales
state government, Fraser said after the company reported a more
than threefold jump in full-year net income to A$388.7 million. AGL rose 3.1 percent to A$14.82 at 12:13 p.m. in Sydney,
outperforming the 1.2 percent drop in the benchmark index. While AGL is looking at Macquarie Generation, which owns
the Liddell and Bayswater coal-fired plants, “there’s plenty of
supply in the market at the moment, so it’s a question of value,
and it’s a question of price,” he said. Fraser wouldn’t say
whether AGL is bidding for the Macquarie power plants, citing a
confidentiality agreement. AGL recorded a pretax impairment of A$343.7 million for the
year for its New South Wales coal-seam gas assets after the
state government proposed restricting access to some areas for
exploration and development. AGL in July delayed the A$550 million Silverton wind farm
in New South Wales because of uncertainty over government
policy. The company in October suspended the development of the
first stage of its 1,000-megawatt Dalton gas-fired power station
in the state. Full-year underlying profit rose to A$598.3 million from
A$482 million a year earlier, it said today. To contact the reporter on this story:
James Paton in Sydney at
[email protected] To contact the editor responsible for this story:
Jason Rogers at
[email protected] | 2013 | agl-energy-delays-plans-to-develop-power-plants-on-weak-demand |
Akorn Obtains $675 Million of Loans for Hi-Tech Acquisition | By Christine Idzelis | 2013-08-28T14:22:22Z | http://www.bloomberg.com/news/2013-08-28/akorn-obtains-675-million-of-loans-for-hi-tech-acquisition.html | 8 | 28 | 69bc8e5f3794247631da691a2b303c27ac623223 | Akorn Inc. (AKRX) , a maker of generic eye-care products, obtained $675 million of financing commitments
backing its purchase of Hi-Tech Pharmacal Co. The credit pact consists of a $600 million term loan and a
$75 million revolving credit line, according to a regulatory
filing today. JPMorgan Chase & Co. is providing the debt
commitments. Akorn agreed to buy Hi-Tech Pharmacal for $640 million in
cash to expand into areas including cold and cough treatments.
The company expects the deal will be completed in the first
quarter of 2014. The seven-year term loan will help fund the merger, while
the five-year revolver will be used by Lake Forest, Illinois-based Akorn for general corporate purposes, according to the
regulatory filing. Under a revolver, money can be borrowed again once it’s
repaid; in a term loan , it can’t. To contact the reporter on this story:
Christine Idzelis in New York at
[email protected] To contact the editor responsible for this story:
Faris Khan at
[email protected] | 2013 | akorn-obtains-675-million-of-loans-for-hi-tech-acquisition |
Hyatt to Acquire Peabody Orlando Hotel for $717 Million | By Oshrat Carmiel | 2013-08-28T13:21:15Z | http://www.bloomberg.com/news/2013-08-28/hyatt-to-acquire-peabody-orlando-hotel-for-717-million.html | 8 | 28 | d55caa599719a88041febd620556b8d1fc18d70e | Hyatt Hotels Corp. (H) , the chain
controlled by the Pritzker family, agreed to purchase the
Peabody Orlando Hotel for $717 million to accommodate convention
travelers in the Florida tourist destination. The sale of the 1,641-room hotel, attached to to the Orange
County Convention Center, is expected to be completed in
October, Hyatt said today in a statement. The property will be
renamed the Hyatt Regency Orlando Convention Center. “This transaction brings us a very high-quality hotel in
one of the most popular cities in the world and enhances the
Hyatt Regency brand,” Stephen Haggerty, global head of real
estate for Chicago-based Hyatt, said in a statement. The hotel will be the company’s sixth in Orlando and the
first one associated with conventions. The property has more
than 200,000 square feet (18,600 square meters) of group
facilities, along with more than 2 million square feet at the
Orange County Convention Center, which will give it the most
meeting space of any of its U.S. Hyatt Regency properties. The seller is an affiliate of Memphis, Tennessee-based
investment firm Belz Enterprises and Orlando-based Estein &
Associates USA Ltd. The hotel recently had a $440 million renovation and Hyatt
said it doesn’t plan to invest “significant capital” in the
near future. Hyatt expects the property to generate about $10 million in
fourth-quarter earnings before in interest, taxes, depreciation
and amortization. That will rise to about $55 million for 2014. To contact the reporter on this story:
Oshrat Carmiel in New York at
[email protected] To contact the editor responsible for this story:
Kara Wetzel at
[email protected] | 2013 | yatt-to-acquire-peabody-orlando-hotel-for-717-million |
Shell Sells Urals at Three-Month Low; Basrah Flow Cut | By Sherry Su and Laura Hurst | 2013-08-28T16:27:57Z | http://www.bloomberg.com/news/2013-08-28/shell-sells-urals-at-three-month-low-basrah-crude-flows-to-drop.html | 8 | 28 | e55321f5ecb249d8848855fefd7e4c2d | (Corrects to say Awami works for oil ministry in seventh
paragraph.) Royal Dutch Shell Plc (RDSA) sold Russian
Urals blend at the lowest price in three months. There were no
bids or offers for North Sea Forties crude. Iraq will reduce daily exports of Basrah Light crude from
the Persian Gulf in September to the lowest in at least 20
months, a loading program obtained by Bloomberg News showed. North Sea BP Plc yesterday failed to buy Forties for Sept. 9 to Sept.
13 loading at 65 cents a barrel more than Dated Brent, a
Bloomberg survey of traders and brokers monitoring the Platts
pricing window showed. No bids or offers were made for Brent,
Oseberg or Ekofisk crudes in the window. Reported crude trading
typically occurs during the Platts window, which ends at 4:30
p.m. London time. Brent for October settlement traded at $115.30 a barrel on
the ICE Futures Europe exchange at the close of the window,
compared with $114 in the previous session. The November
contract was at $113.89, a discount of $1.41 to October. Urals/Mediterranean Shell sold 100,000 metric tons of Urals for Sept. 13 to
Sept. 17 loading to Total SA at 80 cents a barrel less than
Dated Brent on a delivered basis to Rotterdam, a Bloomberg
survey of traders and brokers monitoring the Platts pricing
window showed. This is the lowest since May 13 and compares with
a trade yesterday at discount of 60 cents. OAO Surgutneftegas issued a tender to sell five Urals
cargoes of 100,000 tons each loading from the Baltic Sea next
month, according to two traders with knowledge of the matter.
Two lots will be loaded on Sept. 15 to Sept. 16, and Sept. 17 to
Sept. 18 from Ust-Luga, while the remainder will be shipped on
Sept. 18 to Sept. 19, Sept. 21 to Sept. 22 and Sept. 24 to Sept.
25 from Primorsk. The tender closes tomorrow. Libya ’s oil output is still below 200,000 barrels a day and
production from Sharara and El Feel fields halted for a third
day as the pipeline carrying the crude to export terminals was
shut by oil workers and security guards, Ibrahim Al Awami,
Director of Measurement at the oil ministry said in a telephone
interview from Tripoli. Prime Minister Ali Zaidan told a press conference in
Tripoli that he rejects the notion of a federal state in the
east of the country. At least four major oil ports, including Es
Sider, the nation’s largest, remain closed, according to NOC. NOC reduced benchmark Es Sider crude price for September to
30 cents a barrel less than Dated Brent, compared with a
discount of 20 cents for August, according to a price list
obtained by Bloomberg News . Iraq will ship about 52.86 million barrels, or 1.76 million
barrels a day, from the Basrah Oil Terminal, according to the
plan. This is the lowest since at least February 2012 when
Bloomberg started tracking the data and compares with 2.09
million a day this month. Pumping of Iraqi Kirkuk crude to Turkish port of Ceyhan
stopped at 4:30 p.m. local time today, according to shipping
agent Boutros Maritime & Transports SA. West Africa Nigeria will export two cargoes of Erha crude in October,
one less than September, and shipments of Antan will be one
versus three for this month, according to loading programs
obtained by Bloomberg News. Erha lots are 998,000 barrels each,
while Antan is 950,000 barrels. The nation will increase
loadings of Okwori to two 650,000-barrel cargoes from one. Bharat Petroleum Corp. bought 1 million barrels each of
Nigerian Agbami and Yoho crude for October loading via a tender,
according to three traders who asked not to be identified
because the information is confidential. The Yoho cargo will be supplied by Exxon Mobil Corp., while
the Agbami shipment was purchased from Statoil ASA, the traders
said. PT Pertamina bought 950,000 barrels of Nigeria ’s Bonny
Light for October delivery, according to an official at
Indonesia ’s state-owned oil company. The cargo will be sent to
the Cilacap refinery in Java. Glencore Xstrata Plc sold 1 million barrels of Angolan
Kissanje crude to Mangalore Refinery & Petrochemicals Ltd. for
October loading at about 10 cents to 20 cents a barrel less than
Dated Brent, said two traders with knowledge of the matter. Duke Oil Ltd., a unit of state-owned Nigerian National
Petroleum Corp., sold via a tender yesterday 950,000 barrels of
Qua Iboe for loading Oct. 13 to Oct. 14, say three traders who
participate in the market. Exxon Mobil sold two Qua Iboe cargoes for loading on Oct.
27 to Oct. 28, and Oct. 29 to Oct. 30, said two traders with
knowledge of the matter. The cargoes were offered at about $4.00
a barrel more than Dated Brent, compared with trades at premiums
of $3 to $3.20 for September shipments. Taiwan CPC Corp. bought 2 million barrels of Angolan Nemba
crude, and 1 million barrels each of Angola ’s Cabinda and
Ghana ’s Jubilee grades via a tender, said two traders who
participate in the region’s oil market. The company bought Cabinda and Nemba from Chevron Corp.,
another Nemba cargo from Total and a shipment of Jubilee from
Vitol Group, they said. To contact the reporters on this story:
Sherry Su in London at
[email protected] ;
Laura Hurst in London at
[email protected] To contact the editor responsible for this story:
Stephen Voss at
[email protected] | 2013 | shell-sells-urals-at-three-month-low-basrah-crude-flows-to-drop |
Commodities Gain to Six-Month High as Oil Rallies on Syrian Risk | By Chanyaporn Chanjaroen | 2013-08-28T03:15:52Z | http://www.bloomberg.com/news/2013-08-28/commodities-gain-to-six-month-high-as-oil-rallies-on-syrian-risk.html | 8 | 28 | caf41b2edd8e4346683981badff716cdb58d4eb8 | Commodities advanced to the highest
level in more than six months as escalating tension in Syria
spurred a rally in oil on concern that supplies from the Middle
East may be disrupted. The Standard & Poor’s GSCI Spot Index rose as much as 1.6
percent to 673.4, the highest since Feb. 20, and was at 673.35
at 11:14 a.m. in Singapore. West Texas Intermediate rose as much
as 2.4 percent, while Brent rallied 2.5 percent. The two oil
benchmarks plus gold account for about 50 percent of the index. The U.S., France and Britain stepped closer to a strike
against Syria, laying the legal groundwork to justify military
action and moving forces into place. Syria is suspected of
launching an Aug. 21 chemical-weapons attack outside Damascus.
A U.S.-led strike on Syria is likely within the next week,
Societe Generale SA said in a report. “The geopolitical risk premium increased sharply in oil
and also supported gold markets,” analysts at Australia & New
Zealand Banking Group Ltd. led by Melbourne-based Mark Pervan
said in a report. “While the events in Syria have little impact
on oil prices in isolation, the potential impacts flowing
through to the rest of the region are high.” Gold futures climbed 2.2 percent to $1,424 an ounce
yesterday, the highest level for a most-active contract since
May 15. Bullion for December delivery traded 0.2 percent lower
at $1,416.90 today. Corn, wheat and soybeans in Chicago advanced today as hot
weather in the Midwest spurred concern that yields may decline.
Copper futures on the Comex climbed for the fourth day in five. To contact the reporter on this story:
Chanyaporn Chanjaroen in Singapore at
[email protected] To contact the editor responsible for this story:
James Poole at
[email protected]
NI OIL
NI MIDEAST
NI CMDMARKET
NI NRGMARKET
NI METMARKET
NI AGRMARKET
NI PCSMARKET
NI SYRIA
NI EM
NI ASIA
NI CMD | 2013 | commodities-gain-to-six-month-high-as-oil-rallies-on-syrian-risk |
Francesca’s Besting Lululemon Seen Luring Bids: Real M&A | By Brooke Sutherland | 2013-08-28T20:29:20Z | http://www.bloomberg.com/news/2013-08-28/francesca-s-besting-lululemon-seen-luring-bids-real-m-a.html | 8 | 28 | b94a5afec76944b29d7acfa5b61dbac9 | Francesca’s Holdings Corp. (FRAN) , the
women’s boutique operator that boasts the retail industry’s
fastest growth rate, may also command the most expensive price
tag in a U.S. takeover. Francesca’s is projected by analysts to boost sales by 80
percent during the next three years, faster than any other
apparel chain including Lululemon Athletica Inc. (LULU) , according to
data compiled by Bloomberg. With the $1 billion company poised
to report record free cash flow and more than double its store
count to 900 outlets, Francesca’s could appeal to private-equity
firms, Avondale Partners LLC said. Rue21 Inc., a similar-sized
clothing retailer, agreed in May to a buyout by Apax Partners. Francesca’s also might be a logical target for other U.S.
retailers whose growth has slowed, Macquarie Group Ltd. said.
Clothing chains from Aeropostale Inc. (ARO) to Abercrombie & Fitch Co.
had revenue declines in the latest quarter. Investors aren’t
giving Francesca’s enough credit for its growth prospects,
according to SunTrust Banks Inc., signaling buyers can still get
a bargain even as the Houston-based retailer would command the
highest multiple for a takeover of a U.S. chain. “There aren’t that many retailers left who can double the
store base and have a proven concept in place,” Pamela Quintiliano, a New York-based analyst at SunTrust, said in a
phone interview. “It is definitely an attractive takeover
target.” Randi Sonenshein, Francesca’s vice president of finance and
investor relations, didn’t immediately respond to a phone call
seeking comment. Expansion Plan Francesca’s, which was taken public in 2011 by private-equity firm CCMP Capital Advisors LLC, sells women’s clothes,
bags and shoes through 438 U.S. retail locations that are
modeled after upscale boutiques. The company plans to expand to 900 stores within the next
seven years. As it grows, analysts project annual sales will
rise to $533 million by the fiscal year ended Jan. 31, 2016, 80
percent more than last year’s total of $296 million. That
compares with the median estimated growth rate of 20 percent
among specialty-apparel retailers valued at more than $1
billion, according to data compiled by Bloomberg. Francesca’s surging growth stands out in an industry where
retailers including Abercrombie (ANF) and Aeropostale are posting
lower sales and shuttering stores, according to Mark Montagna, a
Nashville, Tennessee-based analyst at Avondale Partners. Good Story That could make the company an attractive target for
private-equity firms, which would also be drawn to its free cash
flow, he said. Analysts estimate that Francesca’s will generate
$50 million in free cash flow this fiscal year, the most on
record, and the company has no debt . “They are the best store growth story in specialty
retail,” Montagna said in a phone interview. “Such strong cash
flows would enable private equity to take them private and load
the company up with debt” in a leveraged buyout. Francesca’s could fetch as much as a 30 percent premium, or
about $30.50 a share, in a takeover, said Susan Anderson, an
Arlington, Virginia-based analyst at FBR & Co. Today, shares of Francesca’s rose 2.7 percent to $24.12. A larger U.S. retailer makes more sense as a buyer of
Francesca’s, lured by the chance to give sales a jolt while also
cutting costs by combining operations, said Liz Dunn, a New
York-based analyst at Macquarie. “Most strategic acquirers are looking for brands that have
growth potential as well as some differentiated business
model,” Dunn said in a phone interview. Francesca’s is “a
well-run retailer.” Fat Margins Francesca’s operating margin of 26 percent is higher than
95 percent of peers, according to data compiled by Bloomberg. While the company’s high margins would only add to its
appeal for other retailers, private-equity suitors may not see
enough room for improvement to justify an investment, Dunn said. Buyout firms may also be turned off by Francesca’s
valuation, according to Howard Tubin , a New York-based analyst
at Royal Bank of Canada . Francesca’s trades at 3.3 times its sales in the last 12
months. Even without a premium, that’s already a higher revenue
multiple than in any takeover of a U.S. shoe or apparel
retailer, according to data compiled by Bloomberg. “It doesn’t jump off the pages in an LBO screen as being
screamingly cheap,” Tubin said in a phone interview. Even so, Francesca’s is undervalued given its expansion
opportunities and could be attractive to a private-equity buyer
looking to get ahead of potentially even higher multiples, said
Quintiliano of SunTrust. Buyout firms could be interested “based on where it is
now,” she said. “They have a lot of growth and they’re not
being given any credit for it.” To contact the reporter on this story:
Brooke Sutherland in New York at
[email protected] To contact the editor responsible for this story:
Sarah Rabil at
[email protected] | 2013 | francesca-s-besting-lululemon-seen-luring-bids-real-m-a |
Morgan Lewis, Outten & Golden, Cooley: Business of Law | By Ellen Rosen | 2013-08-28T12:49:46Z | http://www.bloomberg.com/news/2013-08-28/morgan-lewis-outten-golden-cooley-business-of-law.html | 8 | 28 | 904c1f59ea9c46499a92cbce2d84ebcb | JPMorgan Chase & Co. (JPM) violated the
National Labor Relations Act by requiring five former employees
to use binding arbitration after they joined a class-action suit
involving overtime pay, an administrative law judge of the
National Labor Relations Board said. In an Aug. 21 ruling, Steven Fish, the administrative law
judge, relied on a 2012 labor board decision that says requiring
an employee to relinquish his or her right to sue is counter to
the NLRA. “By maintaining a binding arbitration agreement that
waives the right to maintain class or collective actions in all
forums, whether arbitral or judicial,” the bank engaged in
unfair labor practices, Fish wrote. Fish said that while some courts have questioned the
rationale of the 2012 ruling, he was bound by it unless it’s
overturned by the courts. JPMorgan can file objections to the ruling with the full
labor board. If the board upholds the ruling, the bank can
appeal in federal court. Morgan Lewis & Bockius LLP represented JPMorgan. Jonathan
Fritts, a partner at Morgan Lewis, declined to comment on the
ruling. Trish Wexler, a spokeswoman for JPMorgan, declined to
comment. The plaintiffs were represented by Outten & Golden LLP, a
firm specializing in employment law. “The arbitration agreements frustrated the right to engage
in concerted activity, which includes bringing a lawsuit over
how you’re paid,” said Michael Scimone, a lawyer with Outten. The case is JPMorgan Chase & Co. and Chase Investment
Services Corp. 02-CA-098118. The federal court case is Lloyd v
JPMorgan Chase, 1:11-cv-09305, U.S. District Court for the
Southern District of New York ( Manhattan ). Courts Facebook’s Settlement Over ‘Sponsored Stories’ Approved A federal judge on Aug. 26 approved a $20 million
settlement of a lawsuit against Facebook Inc. (FB) which claimed the
social networking site used subscribers’ names without their
permission to advertise products in its “Sponsored Stories.” Under the settlement users can claim a $15 payment, and
funds left over will go to advocacy groups. While the deal
initially approved by the judge in December included a $10 per
claimant settlement, U.S. District Judge Richard Seeborg wrote
in the order that “so few persons have filed claims that the
parties” increased the amount. Seeborg held that “the court is satisfied that the
revisions to the terms of the settlement are sufficient to
warrant preliminary approval under the applicable standards.” Cooley LLP represented Facebook in the litigation. The case is Fraley v. Facebook Inc., 11-cv-01726, U.S.
District Court, Northern District of California ( San Jose ). Law Firm News Squire Sanders Adds Health-Care Partner in Cincinnati Office Adam Colvin joined Squire Sanders LLP as a partner in the
health-care practice group in Cincinnati. Colvin focuses his practice on regulatory and transactional
matters, including fraud and abuse issues, joint ventures,
purchase and sale of physician practices, employment and
recruitment agreements and the establishment of ambulatory
surgery centers. “We are very excited for Adam to join our health-care
practice group,” David Grauer, head of the practice group, said
in a statement. “His talent and extensive health-care
experience will create new opportunities and will add to the
level of service we can provide our clients.” Holland & Knight Opens Office in Mexico City Holland & Knight LLP is opening a new office in Mexico City
after previously operating in Mexico through a joint venture
established in 1998. The office, which continues the firm’s expansion in Latin
America , will be led by Boris Otto, the former managing partner
of the Mexico City office of Chadbourne & Parke LLP. Alejandro Landa Thierry and José Antonio Prado, formerly with Chadbourne &
Parke, will join Holland & Knight. Two counsel, Miriam Grunstein
and Leslie Palma, and five associates expand the firm’s Latin
American practices. The Mexico City office will focus on corporate finance,
energy, project finance, capital markets , mergers and
acquisitions, securitizations and private equity. “We see enormous potential in Mexico for the firm and its
clients,” Steven Sonberg, the managing partner of Holland &
Knight, said in a statement. “Mexico is a dynamic market and
many of our clients have operations or interests there.” Ballard Spahr Expands Its New York Office Justin Angelo joined the consumer financial services group
of Ballard Spahr LLP in New York. Angelo, who joins the firm from the Fort Lauderdale office
of Greenberg Traurig LLP, has experience defending banks and
non-banks against claims under various residential mortgage and
other consumer laws, including the Truth in Lending Act, Real
Estate Settlement Procedures Act, Fair Debt Collection Practices
Act, Fair Credit Reporting Act and Equal Credit Opportunity Act. The firm opened its New York office on July 1 when it
joined with Stillman & Friedman, a boutique litigation firm. To contact the reporter on this story:
Ellen Rosen in New York at
[email protected] To contact the editor responsible for this story:
Michael Hytha at [email protected] . | 2013 | organ-lewis-outten-golden-cooley-business-of-law |
Deutsche Telekom Wins Kabel Deutschland Case Over Duct Fees | By Karin Matussek | 2013-08-28T10:00:51Z | http://www.bloomberg.com/news/2013-08-28/deutsche-telekom-wins-kabel-deutschland-case-over-network-access.html | 8 | 28 | d7eeb3cd8abc597320dff956a878f6c14082e8db | Kabel Deutschland Holding AG lost a
suit seeking 350 million euros ($468 million) from Deutsche
Telekom AG (DTE) over claims Germany’s former phone monopoly
overcharged its rival for the use of cable ducts. The Frankfurt Regional Court rejected Kabel Deutschland’s
argument that Deutsche Telekom violated antitrust rules since
2003, Arne Hasse, the tribunal’s spokesman said in an e-mailed
statement today. Deutsche Telekom doesn’t have a dominant market
position in the area, according to the court. “Because the suit also sought a declaratory judgment
covering the future, the economic value of the case is in the
billions,” Hasse said. Kabel Deutschland, the cable provider being bought by
Vodafone Group Plc, argued that a ruling by Germany ’s
telecommunications regulator forcing the company to charge less
for use of the “last mile” of its network indicated that the
duct fees were also too high. Marco Gassen, a spokesman for Unterfoehring-based Kabel
Deutschland, said the company will most likely appeal after it
analyzes the judgment. The court backed Deutsche Telekom’s position, company
spokesman Andreas Middel said. When the suit was filed last year, Kabel Deutschland said
the annual fee of about 100 million euros needed to be cut by
about two thirds. The company had bought Deutsche Telekom’s
cable network in 2003 and part of the deal was the fee agreement
for the duct use. The lease arrangement was part of Kabel Deutschland’s
decision to take over the cable network, the court said today.
Since Deutsche Telekom had no dominant market position, the
telecommunication regulator’s rulings didn’t play a role in the
case, according to the judges. The case is LG Frankfurt am Main, 2-06 O 182/12. To contact the reporter on this story:
Karin Matussek in Berlin at
[email protected] To contact the editor responsible for this story:
Anthony Aarons at
[email protected] . | 2013 | deutsche-telekom-wins-kabel-deutschland-case-over-network-access |
Bond Binge Pushing Leverage Toward Financial Crisis Peak | By Charles Mead | 2013-08-28T15:56:11Z | http://www.bloomberg.com/news/2013-08-28/bond-binge-expanding-leverage-toward-crisis-peak-credit-markets.html | 8 | 28 | 74eb27fc3e0d46248d754a5c92aabf4f | Company debt loads in the U.S. are
approaching the highest level since the aftermath of the
financial crisis as borrowing to finance mergers and shareholder
payouts exceeds earnings growth. Debt levels have increased faster than cash flow for six
straight quarters, boosting the obligations of investment-grade
companies in the second quarter to 2.09 times earnings before
interest, taxes, depreciation and amortization, according to
JPMorgan Chase & Co. That’s up from 2.07 times in the first
three months of 2013 and compares with 2.13 in the third quarter
of 2009, when it peaked after the deepest recession since the
Great Depression. Businesses from Apple Inc. (AAPL) to Comcast Corp. (CMCSA) have tapped
credit markets this year to take advantage of the lowest
borrowing costs on record before the Federal Reserve decides to
pull back on measures intended to boost an economy that’s
forecast to expand this year at the slowest pace since 2009. The
leverage trend can’t be sustained, JPMorgan analysts led by Eric Beinstein wrote last week in a report, and a combination of
rising rates and high cash balances may curtail issuance. Risks Exposed “They are stretching their metrics and leaving themselves
exposed to the risk that there isn’t a full-scale recovery,”
Rajeev Sharma , who manages $1.5 billion of fixed-income assets
in New York at First Investors Management Co., said in a
telephone interview. “Once rates start to spike up, you should
see less new issuance and some kind of normalization” in
leverage, he said. Investment-grade companies have issued $739 billion of
bonds in the U.S. this year, according to data compiled by
Bloomberg. That’s a faster pace than in the same period of 2012,
when a record $1.12 trillion of securities were issued by
borrowers ranked Baa3 or higher by Moody’s Investors Service or
at least BBB- by Standard & Poor’s . While earnings growth has remained limited, “there has
been no moderation in the pace of debt,” the JPMorgan analysts
wrote in an Aug. 23 analysis of 190 non-financial companies.
Borrowings increased by 9.1 percent in the quarter ended June 30
from a year earlier, rising to a decade-high of $2.9 trillion
even as Ebitda dropped 2.3 percent, led by declines in the
metals and mining industry. Credit Benchmarks “A lot of debt issued in the last year has been to finance
mergers and acquisitions and rewarding shareholders,” said the
analysts, whose New York-based firm underwrites the most
corporate bonds worldwide. Those trends “seem to be declining”
and “we expect that companies will reduce the rate of debt
issuance due to rising yields and high cash balances,” they
wrote. Elsewhere in credit markets, Sanofi, France ’s largest
drugmaker, sold its first bonds in euros since November 2012.
The cost to protect against corporate-bond losses in the U.S.
reached the highest level in more than seven weeks. The Markit CDX North American Investment Grade Index, a
credit-default swaps benchmark that investors use to hedge
against losses or to speculate on creditworthiness, fell 0.3
basis point to 83.8 basis points as of 11:50 a.m. in New York ,
according to prices compiled by Bloomberg. The measure, which
jumped 5.3 basis points the previous two days, earlier rose to
as high as 85.1, the highest intraday level since July 8. Europe Index In London , the Markit iTraxx Europe Index , tied to the debt
of 125 companies with investment-grade ratings, fell 0.8 to
106.7. The indexes typically fall as investor confidence improves
and rise as it deteriorates. Credit swaps pay the buyer face
value if a borrower fails to meet its obligations, less the
value of the defaulted debt. A basis point equals $1,000
annually on a contract protecting $10 million of debt. The U.S. two-year interest-rate swap spread, a measure of
debt market stress, fell 2.1 basis points to 15.75 basis points,
the lowest since July 29. The gauge typically narrows when
investors favor assets such as corporate bonds and widens when
they seek the perceived safety of government securities . Bonds of Fairfield, Connecticut-based General Electric Co.
are the most actively traded dollar-denominated corporate
securities by dealers today, accounting for 5.9 percent of the
volume of dealer trades of $1 million or more, according to
Trace, the bond-price reporting system of the Financial Industry
Regulatory Authority. Sanofi Bonds Paris-based Sanofi offered 1 billion euros ($1.3 billion)
of 1.875 percent, seven-year securities to yield 27 basis points
more than swaps, Bloomberg data show. While an economic recovery in the U.S. following a 2.8
percent contraction in 2009 helped companies improve their
finances and lower leverage to a ratio of 1.83, credit metrics
have since deteriorated, according to JPMorgan data that
excludes automakers. Gross domestic product in the world’s largest economy will
expand 1.6 percent this year after a 2.8 percent increase last
year, according to the median estimate of 73 economists surveyed
by Bloomberg. Comcast has issued about $7 billion of bonds this year, $4
billion of which helped finance a $16.7 billion payment to
General Electric for its remaining stake in broadcaster
NBCUniversal. The largest U.S. cable provider’s debt-to-earnings
ratio has since climbed to 2.25 at the end of June from a more
than decade-low of 1.94 a year earlier. Apple Leverage “We view our balance sheet as a strategic asset and are
focused on strengthening our financial position over the next
few years with a medium-term leverage ratio target of 1.5 to 2
times,” Michael Angelakis, Comcast’s chief financial officer,
said on a July 31 conference call with analysts to discuss
second-quarter earnings. Apple, which is paying shareholders $100 billion to
compensate for a stock that’s been hammered by signs of slowing
growth, sold $17 billion of bonds in April, the biggest
corporate offering on record. That added leverage to a balance
sheet that had been debt-free since 2003. It also lifted the total amount of cash delivered to
shareholders in the second quarter by investment-grade companies
to $485 billion, a 1.5 percent increase from the previous
period, JPMorgan data show. That’s 57 percent higher than the
average over the past decade, though the level has declined from
a year earlier, the analysts wrote. ‘New Norm’ “As companies are less and less able to deliver earnings
growth through internal efficiencies and top-line growth, and at
the same time shareholders are pushing for increased rewards,
they’re turning to financial engineering to push returns,” said
Alan Shepard, an analyst and money manager at Madison Investment
Advisors Inc., which oversees about $16 billion in Madison,
Wisconsin . “Borrow the money at low rates to finance
repurchases and you can drive earnings-per-share growth.” Steve Dowling, a spokesman at Cupertino, California-based
Apple, didn’t respond to telephone and e-mail messages seeking
comment on the company’s finances. “People have been forced into accepting that lower credit
quality is the new norm,” said Robert Smith , the chief
investment officer at Austin, Texas-based Sage Advisory Services
Ltd., which oversees about $10.5 billion. Issuance Urgency While heavier debt burdens have been supported by a Fed
policy that pushed average U.S. corporate-bond yields to a
record-low 2.65 percent in May, JPMorgan strategists said they
expect issuance to slow as interest rates increase. Speculation
is mounting that Chairman Ben S. Bernanke will reduce the
central bank’s $85 billion in monthly debt purchases as soon as
next month. With a greater sense of urgency to tap debt markets before
rates climb higher, companies may continue to increase leverage
through the end of the year, Bank of America Corp. debt
strategist Yuriy Shchuchinov said in an Aug. 26 note. The Fed speculation helped lift borrowing costs to 3.5
percent through Aug. 26, according to the Bank of America
Merrill Lynch U.S. Corporate Index. That’s still more than 2
percentage points less than the 5.9 percent average over the
last 20 years. “As the yield curve continues to move higher, companies
may be more reluctant to increase leverage to reward
shareholders,” Shepard said. “Eventually the debt has to be
refinanced or retired, and the odds are that it won’t be done at
the historical low rates of earlier this year.” To contact the reporter on this story:
Charles Mead in New York at
[email protected] To contact the editor responsible for this story:
Alan Goldstein at
[email protected] | 2013 | bond-binge-expanding-leverage-toward-crisis-peak-credit-markets |
Ex-Madoff Aide Says Beach House Isn’t Fair Game for Jury | By Christie Smythe | 2013-08-28T23:53:05Z | http://www.bloomberg.com/news/2013-08-28/ex-madoff-aide-says-beach-house-isn-t-fair-game-for-jury.html
Former Bernard Madoff employee Joann Crupi wants to prevent prosecutors from telling jurors at her
fraud trial that she used a $2.7 million bonus from her ex-boss
to buy a beach house. Crupi, facing a trial scheduled for October with four other
former Madoff employees, told a judge in Manhattan federal court
that evidence of the 2008 purchase would be “prejudicial.” “Ms. Crupi’s purchase of a beach house fits within no
reasonable construct of relevance,” her lawyer Eric R. Breslin
said in a memorandum filed today. “This evidence serves one
purpose alone | 8 | 28 | 5331672e2da751db95fcb28282b10b2005da9f4c | Crupi as living ’the high life’ on the backs of Madoff
victims.” U.S. District Judge Laura Taylor Swain set Oct. 7 for the
start of a trial against Crupi, Daniel Bonventre, Annette Bongiorno, Jerome O’Hara and George Perez . The defendants, who
have all pleaded not guilty, are charged with crimes including
conspiracy, fraud and falsifying records. Crupi, who worked for Madoff’s firm from about 1983 to
December 11, 2008, was responsible for tracking and directing
money into and out of an account used for the Ponzi scheme ,
according to a superseding indictment filed in July. Crupi, along with other defendants, also helped to maintain
fake trading records at the firm, the government alleged. She
received the $2.7 million cash bonus in 2008 after a European
accounting firm conducted an audit of Madoff’s operation,
according to the indictment. The location of the beach house wasn’t specified in the
court papers filed today. The case is U.S. v. O’Hara, 10-cr-00228, U.S. District
Court, Southern District of New York (Manhattan). To contact the reporter on this story:
Christie Smythe in New York at
[email protected] To contact the editor responsible for this story:
Michael Hytha at [email protected] . | 2013 | ex-madoff-aide-says-beach-house-isn-t-fair-game-for-jury |