Ethiopian Review http://www.ethiopianreview.com/business Business News and Discussion Forum Wed, 18 Nov 2009 12:51:18 +0000 http://wordpress.org/?v=2.8.4 en 1.0 http://www.ethiopianreview.com/business http://www.ethiopianreview.com/business business health General Motors' Ads to Invite Comparison to Rivals http://www.ethiopianreview.com/business/1 Fri, 11 Sep 2009 04:48:48 +0000 http://www.ethiopianreview.com/business/?p=1 Credible Cowboy? Whitacre is a plain-speaking Texan who leads a tough new board of directors that has been scrutinizing everything from GM's sale of its European Opel unit to how long it takes to get new models to market. Lutz said Whitacre will start off the ads saying, "When they asked me to take the job, I too had my doubts." Then Whitacre adds that now that he's gotten inside the company, met the employees, and reviewed the products, "I believe these are some of the best cars and trucks in the world." GM asked Whitacre to appear in the ads because he is an outsider. He also speaks with a Texas drawl and walks with a slight limp, which Lutz says gives him the look of an aging cowboy. When GM showed the ads to consumers in prescreening events, viewers said they trusted Whitacre. "People said he sounds very sincere," Lutz says. "Central casting could not have done better." When he takes the screen, Whitacre will be the fourth auto executive to do so. Former Chrysler CEO Dieter Zetsche appeared in the Dr. Z ads, which got Chrysler some buzz but didn't help sales much. Ford (F) family scion William C. Ford Jr. did the same several years ago, but he wasn't forceful enough, says Daniel Gorrell, principal of Autostrategem, a marketing consulting firm in North Tustin, Calif. Most famously, Lee Iacocca appeared successfully in Chrysler's ads, which worked because he was a big-name personality, Lutz said. In this case, GM just wanted someone new to Detroit to appear in the ads to lend credibility. "Product spokespersons like Iacocca are necessary when you need style over substance, when you need the cult of personality to overcome the weakness of the product," Lutz said. Will the gambit work for Whitacre and GM? "We'll have to see how he comes across onscreen," Gorrell says. "How persuasive is any [chairman]? I have my doubts."

Direct Comparison

GM's comparison ads may have more of an impact. Many consumers don't even know that the company has strong models coming out, Gorrell says. Those who do may have less to worry about buying one now. In one ad, GM will feature the new Chevrolet Equinox SUV beside a competing Honda (HMC) CR-V. The commercial will show that the Equinox has a longer warranty and better highway fuel economy. Even more brazen, GM will compare the Buick LaCrosse sedan to a Lexus ES 350. Its highway fuel economy is 30 miles per gallon to the ES 350's 27 mpg. The warranty is five years and 100,000 miles for the engine and transmission, compared with six years and 70,000 for the Lexus. And the Buick is about $1,000 cheaper. Analysts think the campaign could work. "Consumers watching this ad campaign will be intrigued because of GM's bold statement of confidence in its vehicles," says Jeremy Anwyl, CEO of Edmunds.com. "The risk that GM has in buyers returning its vehicles will be very minimal." If a consumer brings the car back before the 60 days are up, the dealer will buy it back and sell it on the used lot. GM will have to eat the difference. Consumers have to be current on their payments to bring the car back and they can't drive more than 4,000 miles in those two months. Certain buyers won't respond to the ads, but anyone who doesn't hate GM brands might give it a look, Gorrell says. "This is for people who are on the fence, not dyed-in-the-wool Chevy haters," he says. Winning over consumers will be a huge challenge. Not only are sales and market share down, so is consideration for its brands. Cadillac is arguably GM's strongest brand, and only 2.1% of shoppers on Edmunds.com looked at the brand in July. That's down from 4.3% of shoppers in January 2008, according to Edmunds.

Brands in Front

GM may be bragging about its cars, but once the ads featuring Whitacre are done, none of them will talk about General Motors, Lutz says. It's the last thing the company wants to advertise after going through bankruptcy and getting an unpopular government bailout. Lutz said GM's research shows that most consumers don't associate Buick, Chevy, Cadillac, and GMC with GM: "The brands are exonerated from this unfortunate financial occurrence." The company won't restrain its spending either. Lutz said that he and CEO Frederick A. Henderson met recently with Whitacre in San Antonio, where the chairman lives. He asked them how they would counter consumer perception. When they described the plan but fretted that funding was limited, he told them, "Spend it," Lutz says. So GM has upped its budget. Measured as a share of advertising compared to the company's market share, GM is buying a bigger voice than the company has ever purchased. Its market share is 19.4% so far this year, down from 21.6% last year. Whitacre has said internally that he wants to see positive sales results in three months or there will be consequences for executives. Given the depth of GM's brand troubles, if Whitacre is serious about sacking executives, then some may not be around to see if the plan works. It takes years to repair car brands. But the new program could be a good first step. "It's a bit novel," Gorrell says. "This is the kind of trust-creating mechanism that they need." - By David Welch | Businessweek]]> 1 2009-09-10 21:48:48 2009-09-11 04:48:48 open open hello-world publish 0 0 post _edit_lock 1252646022 _edit_last 1 About http://www.ethiopianreview.com/business/about Fri, 11 Sep 2009 04:48:48 +0000 http://www.ethiopianreview.com/business/?page_id=2 2 2009-09-10 21:48:48 2009-09-11 04:48:48 open open about publish 0 0 page Salesforce.com brings better customer service to Twitter and the web http://www.ethiopianreview.com/business/6 Sat, 12 Sep 2009 19:04:33 +0000 http://www.ethiopianreview.com/business/?p=6 Salesforce.com just announced the the latest version of its web-focused customer service tool, the Service Cloud. The central insight of the Service Cloud, as suggested by Senior Vice President of Product Management Alex Dayon when it launched in January, was that customer service has moved away from the old model where customers called the company and asked for help. Instead, they use search engines like Google and social networking services like Facebook and Twitter to find the answers they need. The Service Cloud lets companies adjust to this reality by letting them find and answer customer service questions wherever they’re made on the web. With the just-announced Service Cloud 2, Salesforce is adding three major features, which will be rolled out over the next few months: * Salesforce Knowledge, a database of information (presumably customer service-related), that can be deployed quickly online, and which can be accessible just to customer service agents or to the general web-browsing public. * Salesforce Answers, a tool for creating discussion forums where the answers to customer question are rated, and the best-rated answers are highlighted. * A full roll-out to the Salesforce for Twitter service, which allows companies to answer questions on microblogging site Twitter. Dayon says Salesforce for Twitter now allows companies to manage their Twitter stream efficiently, for example diverting different Twitter queries to different people depending on their areas of expertise. Salesforce also says it has more than 8,000 customers for the Service Cloud, about 70 percent of whom are new to the San Francisco company. Dayon admits that he’d expected to see more customers of Salesforce’s customer relationship management (CRM) software switch to the Service Cloud, but he counts the influx of new customers as a success. Competitors include companies that build customer service websites such as Parature and Get Satisfaction, as well as startups that focus on Twitter, like CoTweet. Dayon argues that Salesforce’s broad approach will win in the end. “We don’t believe the ‘best of breed’ play will work,” he says. “Customers don’t come from just one channel anymore.” - Anthony Ha | VentureBeat]]> 6 2009-09-12 12:04:33 2009-09-12 19:04:33 open open salesforce-com-brings-better-customer-service-to-twitter-and-the-web publish 0 0 post _edit_last 2 _edit_lock 1252782278 8 roadblocks software developers face http://www.ethiopianreview.com/business/8 Sat, 12 Sep 2009 19:07:06 +0000 http://www.ethiopianreview.com/business/?p=8 VentureBeat]]> 8 2009-09-12 12:07:06 2009-09-12 19:07:06 open open 8-roadblocks-software-developers-face publish 0 0 post _edit_lock 1252782791 _edit_last 2 Edufire offers online learning, and gets $1.3M http://www.ethiopianreview.com/business/10 Sat, 12 Sep 2009 19:13:54 +0000 http://www.ethiopianreview.com/business/?p=10 EduFire has raised $1.3 million in a first round of funding for it’s online education platform aimed at democratizing education. The money came from Battery Ventures, Western Technology Investment, and Gokul Rajaram, who helped launch Google’s AdSense. Edufire went live a little more than a year ago and it has quietly gathered 30,000 users who attend online classes — some free, some paid — taught by 5,000 teachers. The topics range from language tutoring to tech skills such as learning Photoshop. Edufire takes a relatively small fee of 15 percent of the revenue that teachers make using its streaming video and audio tools. It also offers a $29 a month SuperPass that gives users unlimited access to live classes. In contrast to other online training programs, Edufire focuses on delivering live content where students can ask questions either through video conferences or text chats, said Jon Bischke, chief executive of Edufire, in an interview. Teachers can have as many as 100 students in a class. There is no restriction on who can teach a class, but Bischke says the highest quality teachers receive the best ratings and are easier to find on the site. The startup raised $400,000 in an angel round a year-and-a-half ago. The company has five employees. Traffic has hit about 125,000 unique visitors a month, meaning the users come back multiple times during a month. - By Dean Takahashi | VentureBeat]]> 10 2009-09-12 12:13:54 2009-09-12 19:13:54 open open edufire-offers-online-learning-and-gets-1-3m publish 0 0 post _edit_lock 1252782837 _edit_last 2 TweetDeck adds MySpace support, directory of Twitter users http://www.ethiopianreview.com/business/13 Sat, 12 Sep 2009 19:15:17 +0000 http://www.ethiopianreview.com/business/?p=13 VentureBeat]]> 13 2009-09-12 12:15:17 2009-09-12 19:15:17 open open tweetdeck-adds-myspace-support-directory-of-twitter-users publish 0 0 post _edit_lock 1252782981 _edit_last 2 No Apple/Beatles today, say McCartney and EMI catalog chief http://www.ethiopianreview.com/business/15 Sat, 12 Sep 2009 19:15:58 +0000 http://www.ethiopianreview.com/business/?p=15 VentureBeat]]> 15 2009-09-12 12:15:58 2009-09-12 19:15:58 open open no-applebeatles-today-say-mccartney-and-emi-catalog-chief publish 0 0 post _edit_lock 1252782959 _edit_last 2 Halo film’s cancellation led to the latest Microsoft game, Halo 3: ODST http://www.ethiopianreview.com/business/17 Sat, 12 Sep 2009 19:16:52 +0000 http://www.ethiopianreview.com/business/?p=17 VentureBeat]]> 17 2009-09-12 12:16:52 2009-09-12 19:16:52 open open halo-film%e2%80%99s-cancellation-led-to-the-latest-microsoft-game-halo-3-odst publish 0 0 post _edit_lock 1252783012 _edit_last 2 Blade announces $10M funding for data center gear http://www.ethiopianreview.com/business/19 Sat, 12 Sep 2009 19:18:16 +0000 http://www.ethiopianreview.com/business/?p=19 Vikram Mehta, who came along from Nortel when Blade was spun off as an independent business, says the company has managed to compete with Cisco, 3Com and other established, large network gear makers because you don’t need a huge investment in hardware these days. “Our real story is software,” Mehta told me in a phone interview, before wryly adding, “If you’re turning a profit, you don’t need a lot of money.” Blade relies on contract manufacturing and other outsourcing for its equipment, both top-of-rack switches and embedded switches that tie together entire six-foot high racks of servers, storage and other data center devices. The switches are pivotal now because “datacenter people today think in terms of a whole rack at a time,” rather than by the individual components inside them, Mehta said. One very promising field for Blade is tying together racks full of disk drives as companies go beyond migrating their CPU servers into the cloud into pushing disk drives into the cloud, too. - By Paul Boutin | VentureBeat]]> 19 2009-09-12 12:18:16 2009-09-12 19:18:16 open open blade-announces-10m-funding-for-data-center-gear publish 0 0 post _edit_lock 1252783223 _edit_last 2 MerchantCircle Answers lets small businesses show off their expertise http://www.ethiopianreview.com/business/21 Sat, 12 Sep 2009 19:19:14 +0000 http://www.ethiopianreview.com/business/?p=21 MerchantCircle creates and manages profile pages for small businesses, and it says it has built a sizable user base and reached profitability earlier this year.. Now it’s trying to offer those businesses more ways to attract customers online, with new services called MerchantCircle Answers and MerchantCircle Neighbors. MerchantCircle Answers is supposed to connect consumers in need of answers to small businesses with expertise. To use the example MerchantCircle offered, you might want to know about the best kind of flooring to install. You could post the question on MerchantCircle, then it would be forwarded to the businesses that MerchantCircle considers to be the experts in flooring, and any of them could pop in and answer. That means consumers find the answers they’re looking for, merchants get recognition, and MerchantCircle gets to keep businesses active on its site. In the past, one of MerchantCircle’s goals was to drive search engine traffic to its business profiles — so that if I typed in “barber” and “Noe Valley” (my neighborhood in San Francisco) into Google, the right MerchantCircle profiles would pop up. Now MerchantCircle hopes to get traffic when people type questions into Google too — see for example this Google search for, “Should I use Pergo or hardwood for my kitchen floor?” MerchantCircle Neighbors, meanwhile, is a way for consumers to create an account and “follow” a businesses, similar to what you’d do on microblogging service Twitter. Then businesses can send out coupons and promotions to those customers. It’s a way for businesses to promote to consumers directly and again, keeps them active on the MerchantCircle site. Overall, the Los Altos, Calif. company says that more than 900,000 merchants have claimed their profiles. (To market itself, MerchantCircle creates profiles for all the businesses it can find, then offers them a way to take control of those profiles.) Around 70 percent of the merchants have no other official web presence, and MerchantCircle says that where business listing and review sites like Yelp have built a big user base in urban areas like San Francisco, MerchantCircle is more geographically dispersed, with 1,120 towns that have more than 100 MerchantCircle businesses. MerchantCircle has raised a total of $14.1 million from Rustic Canyon Partners, Disney’s Steamboat Ventures, Scale Venture Partners, and IAC, the company that owns Citysearch. - By Anthony Ha | VentureBeat]]> 21 2009-09-12 12:19:14 2009-09-12 19:19:14 open open merchantcircle-answers-lets-small-businesses-show-off-their-expertise publish 0 0 post _edit_lock 1252783221 _edit_last 2 Evernote raises $2M http://www.ethiopianreview.com/business/23 Sat, 12 Sep 2009 19:20:28 +0000 http://www.ethiopianreview.com/business/?p=23 VentureBeat]]> 23 2009-09-12 12:20:28 2009-09-12 19:20:28 open open evernote-raises-2m publish 0 0 post _edit_lock 1252783229 _edit_last 2 Riot Games launches hardcore fighting game in China, gets $8M boost http://www.ethiopianreview.com/business/25 Sat, 12 Sep 2009 19:22:33 +0000 http://www.ethiopianreview.com/business/?p=25 Riot Games has raised $8 million in additional venture capital for its online fighting game. The investment was led by Chinese social media giant Tencent, which plans to publish the game in China. The Culver City, Calif.-based game startup is creating League of Legends, a game where you can create your own fantasy character and challenge others to an arena duel. It combines quick-hit online game play with fantasy elements that appeal to hardcore gamers. The company has 50,000 users in a closed beta test now and plans to formally launch in October. Besides Tencent, investors include Benchmark Capital and FirstMark Capital. To date, the company has raised more than $20 million, a hefty sum for a game firm. Brandon Beck, chief executive, said in an interview that the company needs the money to launch its game and continue enhancing it as a service. “Our aim has been to create a quick online experience that takes advantage of new business models but has the production values of a traditional console game,” Beck said. Beck said the company intends to deliver the game as a service. Whereas store-bought games have a beginning and end, online games can go on forever as developers keep adding more content. League of Legends will continue to add new kinds of fighting modes and arenas. The game is a free-to-play game, meaning players can start playing for free. If they want to decorate their characters or buy time-saving features, they have to pay. Riot was able to set up the virtual goods system in a deal with Fatfoogoo, a virtual goods and electronic commerce platform maker. With Fatfoogoo, the company was able to add two kinds of currency: one that you can earn through experience, the other that you can buy with real money. Games with these dual currency systems are considered more fair, since rich players can’t entirely buy their way to victory. Players can spend the currency in the game’s store, where they can buy a variety of items. Mitch Lasky, a partner at Benchmark, said in an interview that the investment was attractive because the company had created an addictive game that players could revisit again and again with endless variety. The risk is that players might get bored with this kind of repetitive game play. This game is like a pickup basketball game, where you find others to play with online and then fight against each other in matches with as many as six players on each side. The inspiration for the game is the free “mod,” or user-generated modification, dubbed “Defense of the Ancients,” a popular version of “Warcraft III” that has an estimated 10 million players. That game has its limitations and so Riot Games decided to make a better, brand new game on its own. The art of the game is highly stylistic, in contrast to more realistic games. Players will assume the identities of wizards, known as “summoners,” and will have dozens of champions which they can conjure to fight in a variety of battlegrounds. Summoners can carry their talents from game to game, but the champions start anew with every session. It’s kind of like a battle fought between characters in World of Warcraft, except there is no virtual world. Lasky said one of the byproducts of the recession is that virtual worlds — which often require huge teams and lots of artists — have fallen out of favor somewhat. He said that games have not proven as recession resistant as everyone thought, but game companies are still prospering if they combine innovations in game play and business models. “They nailed a model where you combined the game play of a hardcore game with the monetization of casual online games,” Lasky said. “When you go after serious gamers who pay $60 for a game, you have to realize that they have a certain expectation for game quality. The deal with Tencent validates the progress the company has made toward this goal.” Riot now has 40 employees and is adding more on its publishing side. Most of the developers have worked on hardcore console games in the past. Beck said it has been easy recruiting in part because the developers get to share in the rewards if the company is successful, as with any startup. The relationship with Tencent is important because it has more than 400 million active users of its QQ instant messenger client, which is used to access all sorts of games and other digital goods services. The game will launch first in the U.S. and Europe and then it will expand to Asia. Other midsession games — those with short game sessions — include rivals such as Electronic Arts with its Battlefield Heroes online game and Challenge Games, which operates arena fighting games such as Duels and MechDuels. Another rival could be Starcraft II, the long-awaited sequel coming from Blizzard Entertainment. But that game has been delayed until next year, giving Riot Games a much-needed opportunity, Lasky said. - By Dean Takahashi | VentureBeat]]> 25 2009-09-12 12:22:33 2009-09-12 19:22:33 open open riot-games-launches-hardcore-fighting-game-in-china-gets-8m-boost publish 0 0 post _edit_lock 1252783424 _edit_last 2 LanzaTech churns steel factory emissions into fuel http://www.ethiopianreview.com/business/27 Sat, 12 Sep 2009 19:23:06 +0000 http://www.ethiopianreview.com/business/?p=27 VentureBeat]]> 27 2009-09-12 12:23:06 2009-09-12 19:23:06 open open lanzatech-churns-steel-factory-emissions-into-fuel publish 0 0 post _edit_lock 1252783449 _edit_last 2 Socialtext builds mobile web apps for collaboration http://www.ethiopianreview.com/business/29 Sat, 12 Sep 2009 19:24:11 +0000 http://www.ethiopianreview.com/business/?p=29 Socialtext, a company that sells collaborative tools like wikis to businesses, is seriously expanding its availability on mobile phones. But rather than building native, downloadable applications for the iPhone, the BlackBerry, and other devices, the Palo Alto, Calif. company has created a mobile website that should (hopefully) work on all smartphones. Socialtext President and co-founder Ross Mayfield says the mobile version of Socialtext should includes almost all the features found on its downloadable application Socialtext Desktop — namely, you’ll be able to read colleagues’ Twitter-style comments and post your own comments in Socialtext Signals, follow co-workers’ activity streams, view their profiles, and also read and edit content in Socialtext’s wiki workspaces. Previously, Socialtext’s mobile support was limited to Socialtext Miki, a mobile version of its wiki tools. As already happened with Miki, Mayfield says he’s particularly interested to see how the mobile apps allow Socialtext to be used in new ways, especially for businesses where you have to do a lot of work out of the office, in the field. As for why Socialtext isn’t building an iPhone app, Mayfield says, “This is a conscious decision that we made. While iPhone apps are all the rage and are great … The kind of lightweight content that people are accessing, they don’t demand it as a rich application experience. And for every single [native] mobile application we have, if it’s going to be supported by IT, that’s a pretty long deployment process.” The mobile version of Socialtext is still in beta testing, and Mayfield acknowledges that it hasn’t been fully tested on every smartphone yet. Companies won’t have to pay extra — it’s included as part of the standard pricing, which means that for companies with less than 50 users, it’s free. Investors include Draper Fisher Jurvetson, SAP, and Omidyar Network. Competitors include Jive Software and PBworks. - By Anthony Ha | VentureBeat]]> 29 2009-09-12 12:24:11 2009-09-12 19:24:11 open open socialtext-builds-mobile-web-apps-for-collaboration publish 0 0 post _edit_lock 1252783452 _edit_last 2 Palm announces its latest phone, the Palm Pixi http://www.ethiopianreview.com/business/31 Sat, 12 Sep 2009 19:25:40 +0000 http://www.ethiopianreview.com/business/?p=31 VentureBeat]]> 31 2009-09-12 12:25:40 2009-09-12 19:25:40 open open palm-announces-its-latest-phone-the-palm-pixi publish 0 0 post _edit_lock 1252783604 _edit_last 2 Google Voice gets better http://www.ethiopianreview.com/business/33 Sat, 12 Sep 2009 19:26:14 +0000 http://www.ethiopianreview.com/business/?p=33 VentureBeat]]> 33 2009-09-12 12:26:14 2009-09-12 19:26:14 open open google-voice-gets-better publish 0 0 post _edit_lock 1252783574 _edit_last 2 Ten-second iPhone tethering fix may be OK with AT&T http://www.ethiopianreview.com/business/35 Sat, 12 Sep 2009 19:26:50 +0000 http://www.ethiopianreview.com/business/?p=35 VentureBeat]]> 35 2009-09-12 12:26:50 2009-09-12 19:26:50 open open ten-second-iphone-tethering-fix-may-be-ok-with-att publish 0 0 post _edit_lock 1252783675 _edit_last 2 Steve Jobs announces “Genius” feature for iPhone http://www.ethiopianreview.com/business/37 Sat, 12 Sep 2009 19:28:59 +0000 http://www.ethiopianreview.com/business/?p=37 VentureBeat]]> 37 2009-09-12 12:28:59 2009-09-12 19:28:59 open open steve-jobs-announces-%e2%80%9cgenius%e2%80%9d-feature-for-iphone publish 0 0 post _edit_lock 1252783805 _edit_last 2 Vivendi bids $2.9B for Brazilian carrier GVT to challenge Telefónica http://www.ethiopianreview.com/business/39 Sat, 12 Sep 2009 19:29:34 +0000 http://www.ethiopianreview.com/business/?p=39 VentureBeat ]]> 39 2009-09-12 12:29:34 2009-09-12 19:29:34 open open vivendi-bids-2-9b-for-brazilian-carrier-gvt-to-challenge-telefonica publish 0 0 post _edit_lock 1252783774 _edit_last 2 Hara lands $14M to track environmental ‘metabolisms’ http://www.ethiopianreview.com/business/41 Sat, 12 Sep 2009 19:30:25 +0000 http://www.ethiopianreview.com/business/?p=41 Hara, maker of environmental and energy management software, has raised $14 million in a second round of funding only three months after its launch. Backed by Kleiner Perkins Caufield & Byers, the company is unique in its ability to track not only energy consumption or carbon output, but what it dubs “organizational metabolism.” It looks at all the resources that go into its clients’ supply chains — including water — how they are used, and the waste products that are produced. With government policies enforcing strict carbon and energy reporting and renewable energy mandates pending in the Environmental Protection Agency, SEC and Congress, software makers like Hara are already seeing a lift in demand. But its CEO, Amit Chatterjee, says the real focus is on creating financial opportunities for its clients, in both the private and public sector. Greening supply chains has started giving major companies a competitive and marketing advantage. Just look at Wal-Mart’s decision to tag its products with their individual footprints so that consumers can make more informed decisions. On top of that, Hara’s software pinpoints the areas where behavior can be changed and money can be saved. The company is unique in its focus on business value and returns, arguing that regulatory compliance — the emphasis of carbon accounting firms and other tracking software — won’t be enough to spur real change. “When you look at the Waxman-Markey bill [the climate bill pending in the Senate that would create a carbon trading system], or whatever form the regulation will come in, it is going to hit the heavy energy consumer sector like oil and gas the hardest, and we have customers in a broader range of industries,” says Hara chief marketing officer Chris Farinacci. “Our customers are looking for a more holistic approach.” Hara’s product relies on modules that draw data from the meters and equipment that companies used to have to read manually. This data is transmitted to a centralized dashboard that slices and dices it into actionable information. Back in June, when it raised its first $6 million round from Kleiner, it listed the Coca-Cola company and the City of Palo Alto as two of 12 clients. Now, it says it has at least half a dozen more, including data networking provider Brocade, defense and aerospace contractor Aerojet and the City of San Jose. Chatterjee says its corporate and municipal clients alike are already changing their practices and processes based on data delivered via Hara’s software. The recent round of funding was led by JAFCO Ventures, which should give the company a nice entree into the Asian markets, Chatterjee says. Nth Power and Kleiner Perkins also participated, boosting Hara’s total capital to $20 million. Considering that it was able to raise a second round so quickly — before it had burned through even half of its $6 million — it seems to have defied the cleantech investment drought. But it wasn’t as easy as it looked. “The opportunity can be great but the risk mitigation going on in the venture community is creating very high standards,” Chatterjee says. “Investors like the story that climate change can be address through operational efficiency. You need to be able to tie the environment to cost savings. Organizations still need to deliver shareholder value.” - By Camille Ricketts | VentureBeat]]> 41 2009-09-12 12:30:25 2009-09-12 19:30:25 open open hara-lands-14m-to-track-environmental-%e2%80%98metabolisms%e2%80%99 publish 0 0 post _edit_lock 1252783826 _edit_last 2 Apple’s iPod sales now top 220 million, with games coming to the fore http://www.ethiopianreview.com/business/43 Sat, 12 Sep 2009 19:31:32 +0000 http://www.ethiopianreview.com/business/?p=43 VentureBeat]]> 43 2009-09-12 12:31:32 2009-09-12 19:31:32 open open apple%e2%80%99s-ipod-sales-now-top-220-million-with-games-coming-to-the-fore publish 0 0 post _edit_lock 1252783957 _edit_last 2 Apple cuts prices, increases storage, adds video camera to some iPods http://www.ethiopianreview.com/business/45 Sat, 12 Sep 2009 19:32:08 +0000 http://www.ethiopianreview.com/business/?p=45 VentureBeat]]> 45 2009-09-12 12:32:08 2009-09-12 19:32:08 open open apple-cuts-prices-increases-storage-adds-video-camera-to-some-ipods publish 0 0 post _edit_lock 1252783991 _edit_last 2 Jobvite takes $8.2M to expand recruiting on social networks http://www.ethiopianreview.com/business/47 Sat, 12 Sep 2009 19:32:59 +0000 http://www.ethiopianreview.com/business/?p=47 Jobvite, provider of software that helps companies recruit hires via popular social networks, has raised $8.25 million in a second round of funding to continue product development. Based in San Francisco, the company helps its clients create job posts on sites like Facebook, LinkedIn and Twitter, shuttle applicants through interviews and offers, and even leverage their current employees’ social graphs to find the best candidates. Operating on the theory that employee referrals usually make the best hires, Jobvite’s software is designed to dig into staff members’ connections, selecting those best qualified for open positions based on certain criteria (this is less elaborate on Twitter, where users can only advertise job postings by tweet or direct message). Of course, employees need to give permission beforehand, and none of their contacts receive anything from the company before they are officially referred. This benefits both businesses looking for top talent, and employees who might be eligible for awards if their referrals are accepted. Jobvite also keeps hiring campaigns more organized by centralizing referrals and applications across many social networks at once (something similar apps don’t do), and tracking candidates’ progress through the recruiting system. For these features, clients pay a one-time activation fee and a monthly subscription charge that varies depending on their size and the level of services required. It includes TiVo, Mozilla and 23andMe among its clients — a pretty impressive roster. The recent round of funding was provided by new investor ATA Ventures and past backer CMEA Capital. Jobvite has now raised about $15.4 million to date. - By Camille Ricketts | VentureBeat]]> 47 2009-09-12 12:32:59 2009-09-12 19:32:59 open open jobvite-takes-8-2m-to-expand-recruiting-on-social-networks publish 0 0 post _edit_lock 1252783980 _edit_last 2 Talking billboards are key to building lasting relationships with customers http://www.ethiopianreview.com/business/49 Sat, 12 Sep 2009 19:33:39 +0000 http://www.ethiopianreview.com/business/?p=49 VentureBeat]]> 49 2009-09-12 12:33:39 2009-09-12 19:33:39 open open talking-billboards-are-key-to-building-lasting-relationships-with-customers publish 0 0 post _edit_lock 1252784020 _edit_last 2 AT&T to upgrade network, but San Francisco, NY iPhone users are out of luck http://www.ethiopianreview.com/business/51 Sat, 12 Sep 2009 19:34:34 +0000 http://www.ethiopianreview.com/business/?p=51 VentureBeat]]> 51 2009-09-12 12:34:34 2009-09-12 19:34:34 open open att-to-upgrade-network-but-san-francisco-ny-iphone-users-are-out-of-luck publish 0 0 post _edit_lock 1252784140 _edit_last 2 Innovalight pushes solar ink to record efficiency http://www.ethiopianreview.com/business/53 Sat, 12 Sep 2009 19:35:20 +0000 http://www.ethiopianreview.com/business/?p=53 Innovalight, maker of liquid-like silicon cells that convert sunlight into energy, announced that its product has achieved 18 percent efficiency, a record for so-called solar inks. Given that typical solar panels are 12 percent efficient on average, this is quite the achievement — especially considering all of the unique applications for solar cells that you can print straight onto silicon. Verified by both the U.S. Department of Energy’s National Reneable Energy Laboratory (NREL) and Germany’s Fraunhofer Institute for Solar Energy Systems, the 18 percent figure (even if its the best and not the average) pushes solar ink that much closer to wide adoption. It should also be helped along by the $3 million subcontract it just received through NREL. Innovalight says it will continue to work on the technology at its Sunnyvale, Calif. headquarters, hoping to up the conversion efficiency even more to 20 percent. With crystalline silicon solar systems making up 86 percent of the solar panel business today, the company has huge market potential. Using solar ink both hastens and cheapens panel production because not as much silicon is required. By pairing this messaging with its new achievement, Innovalight hopes to grow its brand and build hype before going commercial. Ultimately, the company plans to sell its solar ink and license its technology to solar manufacturers. It says it already has six customers lined up, and plans to scale its 100 megawatt solar ink factory to 1 gigawatt. But if it wants to keep an edge, Innovalight will need to keep working on the efficiency piece. Even though its best beats out typical solar cells’ average, other companies are fetching conversion efficiencies of more than 20 percent — even up to 40 percent. SunPower, a force to be reckoned with in the solar space, says it is mass producing cells with 22 percent efficiencies. These technologies — particular thin-film solar cells — are already becoming price competitive with what Innovalight has to offer. And with silicon prices dropping, affordability isn’t as compelling as it used to be. Innovalight has raised $40 million in capital to date from Arch Venture Partners, Apax Partners, Convexa Capital, Harris & Harris and Seven Rosen Funds. - By Camille Ricketts | VentureBeat]]> 53 2009-09-12 12:35:20 2009-09-12 19:35:20 open open innovalight-pushes-solar-ink-to-record-efficiency publish 0 0 post _edit_lock 1252784121 _edit_last 2 Hitwise: Facebook’s lead over MySpace balloons with Connect http://www.ethiopianreview.com/business/55 Sat, 12 Sep 2009 19:36:14 +0000 http://www.ethiopianreview.com/business/?p=55 VentureBeat]]> 55 2009-09-12 12:36:14 2009-09-12 19:36:14 open open hitwise-facebook%e2%80%99s-lead-over-myspace-balloons-with-connect publish 0 0 post _edit_lock 1252784175 _edit_last 2 BrightSource gets some backup from Bechtel for 440 MW of solar http://www.ethiopianreview.com/business/57 Sat, 12 Sep 2009 19:37:05 +0000 http://www.ethiopianreview.com/business/?p=57 BrightSource Energy, developer of large-scale solar thermal plants, has contracted engineering giant Bechtel to build its Ivanpah Solar Energy Generating System in California — a complex of three solar plants expected to produce 440 megawatts (enough to power about 330,000 homes). Bechtel will also be investing equity in the project — giving BrightSource some of the support it needs to fulfill other contracts amounting to 2.6 gigawatts worth of energy. Oakland, Calif.-based BrightSource has already landed deals with Pacific Gas and Electric and Southern California Edison to sell the power generated by the Ivanpah development. No financial terms have been released, but this should grease the wheels for fast construction. As a solar-thermal installation — not a photovoltaic array — the project will use flat mirrors to concentrate sunlight on the top of “power towers,” where water will be converted to steam to turn turbines (see diagram above). While this design is generally cheaper than huge farms of solar panels, industry insiders guessed that BrightSource would run out of money before fulfilling all of its plant-building contracts. 2.6 gigawatts is a massive undertaking — surpassing even the 2-gigawatt plant First Solar announced it will build in China. Bechtel’s involvement will help somewhat — and it’s name could certainly attract other bigwig investors — but it’s not going to cover the costs of the whole Ivanpah project either. Instead, BrightSource is betting on receiving a loan guarantee from the U.S. Department of Energy as part of the stimulus package. The company hasn’t discussed how much it is seeking from the government, or whether it would use a potential loan to cover the rest of the Ivanpah costs. The three plants will be located in the Mojave Desert near the California-Nevada border. The land in question will still be owned by the government and controlled by the Bureau of Land Management. Two smaller plants, producing 100 megawatts each, will take up 850 square miles. The third, larger plant will produce 200 megawatts and require 1,600 acres. Bechtel will also oversee the construction of roads and powerlines needed to operate the plants and transmit the electricity generated. There are few companies besides Bechtel with the technical prowess and interest in solar that could have partnered with BrightSource in this feat. Lockheed Martin is the other logical choice, as its already working on a 290-megawatt solar thermal plant for the Starwood Energy Group in Phoenix. But Bechtel also has extensive solar experience, dating back to several Southern California projects in the 1980s (developed by one of BrightSource’s founders, to boot). It’s somewhat ironic that Bechtel is responsible for building many of the coal-fired, natural gas and nuclear energy plants that renewable and solar proponents are trying to replace. But given the current political climate, it’s no surprise that the company is moving to green up its public image. - By Camille Ricketts | VentureBeat]]> 57 2009-09-12 12:37:05 2009-09-12 19:37:05 open open brightsource-gets-some-backup-from-bechtel-for-440-mw-of-solar publish 0 0 post _edit_lock 1252784289 _edit_last 2 Tapulous CEO Bart Decrem touts new Riddim Ribbon game http://www.ethiopianreview.com/business/59 Sat, 12 Sep 2009 19:37:39 +0000 http://www.ethiopianreview.com/business/?p=59 VentureBeat]]> 59 2009-09-12 12:37:39 2009-09-12 19:37:39 open open tapulous-ceo-bart-decrem-touts-new-riddim-ribbon-game publish 0 0 post _edit_lock 1252784267 _edit_last 2 Voice startup RebelVox could spawn new breed of voice apps http://www.ethiopianreview.com/business/61 Sat, 12 Sep 2009 19:38:09 +0000 http://www.ethiopianreview.com/business/?p=61 VentureBeat]]> 61 2009-09-12 12:38:09 2009-09-12 19:38:09 open open voice-startup-rebelvox-could-spawn-new-breed-of-voice-apps publish 0 0 post _edit_lock 1252784291 _edit_last 2 Click here to find out more! Salesforce.com co-founder: No more scheduled downtime, maybe http://www.ethiopianreview.com/business/63 Sat, 12 Sep 2009 19:39:24 +0000 http://www.ethiopianreview.com/business/?p=63 Salesforce.com is one of the big evangelists for online software and cloud computing, and its co-founder Parker Harris said today the company is working to address a major concern with the cloud: Downtime. Obviously, web users don’t like downtime — witness the uproar whenever Gmail or Twitter goes down. And things are even worse when it affects your business, not just your ability to tweet what your had for lunch. Salesforce says it already provides more than 99.99 percent uptime for its web-based business applications, but it still can’t avoid scheduled downtime, when it has to perform maintenance or upgrades. Customers get advance warning, but it still leads to a few complaints, particularly when the schedule that’s convenient for Salesforce isn’t convenient for you. Now, Harris said Salesforce is testing a program that would give customers access to their applications even when Salesforce is upgrading its service. Initially, you’d only be able to view the applications, not interact with or update them, but even that is “really, really hard,” Harris said. He was speaking at Salesforce’s event today in San Francisco promoting its improved customer service product, Service Cloud 2. On the Service Cloud itself, Harris noted that Salesforce now allows companies to organize all their customer service conversations on the web, so the next step is to organize conversations within the company. “All of that is just threads of information,” Harris said. “There is no more distinction.” - By Anthony Ha | VentureBeat]]> 63 2009-09-12 12:39:24 2009-09-12 19:39:24 open open click-here-to-find-out-more-salesforce-com-co-founder-no-more-scheduled-downtime-maybe publish 0 0 post _edit_lock 1252784488 _edit_last 2 Apple roundup: some nice new features, no knockouts, but Jobs shows up http://www.ethiopianreview.com/business/65 Sat, 12 Sep 2009 19:40:29 +0000 http://www.ethiopianreview.com/business/?p=65 VentureBeat]]> 65 2009-09-12 12:40:29 2009-09-12 19:40:29 open open apple-roundup-some-nice-new-features-no-knockouts-but-jobs-shows-up publish 0 0 post _edit_lock 1252784492 _edit_last 2 Google changes: Bigger text in search box, possible video ads http://www.ethiopianreview.com/business/67 Sat, 12 Sep 2009 19:41:16 +0000 http://www.ethiopianreview.com/business/?p=67 VentureBeat]]> 67 2009-09-12 12:41:16 2009-09-12 19:41:16 open open google-changes-bigger-text-in-search-box-possible-video-ads publish 0 0 post _edit_lock 1252784477 _edit_last 2 Reality Gap launches Battleswarm with a universal game currency system http://www.ethiopianreview.com/business/69 Sat, 12 Sep 2009 19:43:12 +0000 http://www.ethiopianreview.com/business/?p=69 Reality Gap is announcing that it will launch an open beta test on Thursday for its sci-fi online game Battleswarm: Field of Honor, the first in what could be a series of games with an interesting monetization scheme. The game combines a unique style of game play with combat between humans and bugs, but we’ll get back to that later. While Battleswarm is an interesting game on its own, the big deal is that it’s the first major game to show off Reality Gap’s MetaTix universal virtual goods system, which has a currency that gamers could use in a bunch of games and which could be licensed for use by any third-party game developer or publisher. The universal virtual goods system may be just the thing to get gamers to do something they rarely do: try out unfamiliar games. MetaTix is a coin of universal currency that is like a token in the old game arcades. It arose from a conversation between Reality Gap’s founders, Michael Williams and J. Mark Hood (pictured), with Atari founder Nolan Bushnell. Bushnell noted that the best way to get gamers to play brand new games was to put them in a crowded arcade. Gamers who had pockets full of tokens didn’t mind using one token to play a new game. The trio founded Reality Gap in 2007 with the aim of making a universal currency that could be used across a whole bunch of online games. One MetaTix can be purchased for a penny, though most game transactions are considerably more than that. Gamers can buy and sell equipment and make MetaTix currency in the process, which they can then use in the game or in other MetaTix-based games. You can essentially carry your wallet from game to game, but you can’t cash it out. (If you could cash it out, then Reality Gap would run afoul of various anti-gambling laws). The Seattle-based company has now used MetaTix in two games that it got from others. It licensed Monato Esprit from Korean game developer Gamasoft and launched the game in June as a test bed for MetaTix. In that game, users can create their own items and buy and sell them to other players. Then Reality Gap licensed the downloadable game Battleswarm (top and right) from China’s Gameworld Tech to fully demonstrate MetaTix. Battleswarm has two different currencies. One can be earned via experience in the game, while the other can be bought. That helps balance the game so that rich gamers can’t buy their way to victory. The currency system has features such as expiration dates. You can buy a gun such as a flamethrower for $3.50 for a month. After 30 days, it expires and you have to pay again. There’s competition on a variety of fronts. Wild Tangent uses its Wild Coins currency across a bunch of its games, and Microsoft uses Xbox Live points to let users purchase a wide variety of content on its platform. It will be interesting to see if other game companies license MetaTix. One of the attractions is analytics. MetaTix shows the developer exactly how many people are using its game and what royalties it is entitled to as a result. Developers often have to wait months to find that out. Seven developers have signed up so far, Hood said in an interview. In the meantime, Battleswarm already has 15,000 players in its initial closed beta test for Battleswarm. The game resembles the sci-fi movie/novel Starship Troopers, where humans square off against fast-moving giant bugs. The bugs operate in real-time strategy mode, where two players hatch hundreds of bugs and send them against the humans; the humans, meanwhile, are each operated by separate players in first-person shooter mode. Each game is a match between two bug players and six human players. Hood described the game as a “genre-busting” hybrid of two game forms. Hood previously worked at game industry companies such as Capital Entertainment Group and Sierra. Reality Gap has 15 employees, plus a number of contractors. It raised one round of angel funding so far. Rivals include PlaySpan and Live Gamer. - By Dean Takahashi | VentureBeat]]> 69 2009-09-12 12:43:12 2009-09-12 19:43:12 open open reality-gap-launches-battleswarm-with-a-universal-game-currency-system publish 0 0 post _edit_lock 1252784716 _edit_last 2 Video: Ubisoft bets big on iPhone with Assassin’s Creed II game http://www.ethiopianreview.com/business/71 Sat, 12 Sep 2009 19:43:51 +0000 http://www.ethiopianreview.com/business/?p=71 Ubisoft has put a lot of resources into developing iPhone games, including its launch of Assassin’s Creed II made especially for the iPhone. Ben Mettes, producer of the game, talked with us about developing the game for the iPhone, even as the company’s hardcore developers are focusing on creating console versions of the game. The look and sounds in this game show that iPhone gaming is making leaps and bounds. - By Dean Takahashi | VentureBeat]]> 71 2009-09-12 12:43:51 2009-09-12 19:43:51 open open video-ubisoft-bets-big-on-iphone-with-assassin%e2%80%99s-creed-ii-game publish 0 0 post _edit_lock 1252784695 _edit_last 2 Twitter reveals one more branch of its retention strategy http://www.ethiopianreview.com/business/73 Sat, 12 Sep 2009 19:45:15 +0000 http://www.ethiopianreview.com/business/?p=73 VentureBeat]]> 73 2009-09-12 12:45:15 2009-09-12 19:45:15 open open twitter-reveals-one-more-branch-of-its-retention-strategy publish 0 0 post _edit_lock 1252784716 _edit_last 2 BrightRoll launches behavioral targeting for video ads http://www.ethiopianreview.com/business/75 Sat, 12 Sep 2009 19:46:48 +0000 http://www.ethiopianreview.com/business/?p=75 VentureBeat]]> 75 2009-09-12 12:46:48 2009-09-12 19:46:48 open open brightroll-launches-behavioral-targeting-for-video-ads publish 0 0 post _edit_lock 1252784808 _edit_last 2 TweepML revs up Twitter followings for groups of people, businesses http://www.ethiopianreview.com/business/77 Sat, 12 Sep 2009 19:50:14 +0000 http://www.ethiopianreview.com/business/?p=77 VentureBeat]]> 77 2009-09-12 12:50:14 2009-09-12 19:50:14 open open tweepml-revs-up-twitter-followings-for-groups-of-people-businesses publish 0 0 post _edit_lock 1252785016 _edit_last 2 Chip company AMD aims to simplify arcane PC-buying process http://www.ethiopianreview.com/business/79 Sat, 12 Sep 2009 19:50:52 +0000 http://www.ethiopianreview.com/business/?p=79 VentureBeat]]> 79 2009-09-12 12:50:52 2009-09-12 19:50:52 open open chip-company-amd-aims-to-simplify-arcane-pc-buying-process publish 0 0 post _edit_lock 1252785053 _edit_last 2 TimeBridge wants to make web meetings less frustrating http://www.ethiopianreview.com/business/81 Sat, 12 Sep 2009 19:52:05 +0000 http://www.ethiopianreview.com/business/?p=81 VentureBeat]]> 81 2009-09-12 12:52:05 2009-09-12 19:52:05 open open timebridge-wants-to-make-web-meetings-less-frustrating publish 0 0 post _edit_lock 1252785489 _edit_last 2 Fuego Connect dating site rises from ashes of social network http://www.ethiopianreview.com/business/83 Sat, 12 Sep 2009 20:00:10 +0000 http://www.ethiopianreview.com/business/?p=83 VentureBeat]]> 83 2009-09-12 13:00:10 2009-09-12 20:00:10 open open fuego-connect-dating-site-rises-from-ashes-of-social-network publish 0 0 post _edit_lock 1252785611 _edit_last 2 Steve Jobs is going after the game market http://www.ethiopianreview.com/business/85 Sat, 12 Sep 2009 20:00:57 +0000 http://www.ethiopianreview.com/business/?p=85 VentureBeat]]> 85 2009-09-12 13:00:57 2009-09-12 20:00:57 open open steve-jobs-is-going-after-the-game-market publish 0 0 post _edit_lock 1252785658 _edit_last 2 Game Classroom pulls together kids, parents and teachers in one educational site http://www.ethiopianreview.com/business/87 Sat, 12 Sep 2009 20:01:58 +0000 http://www.ethiopianreview.com/business/?p=87 VentureBeat]]> 87 2009-09-12 13:01:58 2009-09-12 20:01:58 open open game-classroom-pulls-together-kids-parents-and-teachers-in-one-educational-site publish 0 0 post _edit_lock 1252785785 _edit_last 2 Western Digital introduces smarter, more intuitive backup drives http://www.ethiopianreview.com/business/89 Sat, 12 Sep 2009 20:02:44 +0000 http://www.ethiopianreview.com/business/?p=89 VentureBeat]]> 89 2009-09-12 13:02:44 2009-09-12 20:02:44 open open western-digital-introduces-smarter-more-intuitive-backup-drives publish 0 0 post _edit_lock 1252785765 _edit_last 2 10 ways to get the second transaction http://www.ethiopianreview.com/business/91 Sat, 12 Sep 2009 20:03:28 +0000 http://www.ethiopianreview.com/business/?p=91 VentureBeat]]> 91 2009-09-12 13:03:28 2009-09-12 20:03:28 open open 10-ways-to-get-the-second-transaction publish 0 0 post _edit_lock 1252785809 _edit_last 2 SharesPost hires big guns to invest in founder shares http://www.ethiopianreview.com/business/93 Sat, 12 Sep 2009 20:04:26 +0000 http://www.ethiopianreview.com/business/?p=93 VentureBeat]]> 93 2009-09-12 13:04:26 2009-09-12 20:04:26 open open sharespost-hires-big-guns-to-invest-in-founder-shares publish 0 0 post _edit_lock 1252785994 _edit_last 2 Streamy: Your hub for social networking, news sharing http://www.ethiopianreview.com/business/95 Sat, 12 Sep 2009 20:05:47 +0000 http://www.ethiopianreview.com/business/?p=95 Streamy is an aggregator. It brings together the news sites and blogs you’ve subscribed to — much like Google Reader — as well as your feeds from various social networking sites like Twitter, Facebook and FriendFeed, and even your chat clients like Google Talk and AIM. But saying it’s a one stop shop for news and social media junkies doesn’t do it justice — the excellence of Streamy is in the details. When you sign up for Streamy, either via the site or through Facebook Connect, it provides you with a basic start page. You can then build it out by adding your Twitter account, Facebook newsfeed, FriendFeed stream, Google Talk account (to actually receive messages in the Streamy interface), and Digg feed. It even lets you track Flickr updates and receive messages from AIM, Yahoo Messenger and Windows Live. Streamy’s design gives you a lot of options within each of these channels. For instance, when you add Twitter, you gain the ability to tweet, view mentions, read direct messages and conduct real-time search all within the Streamy interface. When you add FriendFeed, you can post items, add comments and like others’ posts. The Digg interface lets you sort out top and topic-specific links. And the Facebook add-on lets you change your status, comment, likes, and view your friends’ walls. The icons for each of these channels appear at the top of every window, making them easy to navigate between with one click. That said, you can’t do everything you can on these sites within Streamy. For example, while you can view how many friend or event requests or messages you have on Facebook, clicking on any of them takes you to the actual site. And in order to post in a particular room on FriendFeed, you need to go to that URL (though this functionality really should be added to Streamy). Still, in the social-networking arena, the site excels at giving you an up-to-date snapshot of your online presence and properties, either all together in dashboard form, or separately. Streamy’s real sweet spot is news aggregation and sharing. Not only does it let you import your subscriptions from Google Reader, Bloglines or an OPML URL or File, it also provides story recommendations based on your preferences, and a list of the web’s top newsfeeds, making it easy to subscribe to the most popular properties on the web in any category from arts to science to videogames. You can also add new subscriptions just like you would on Google Reader by providing the URL of the blog of news site. When you import from an outside RSS reader, Streamy maintains your folders and labels, making it easy to find your favorites just where you left them. This same service also takes sharing news and links to a higher level. Let’s say you want to share a link from a blog you read all the time. You have several options at your fingertips. When you hold down your mouse on the title of the post in question, three options pop up in spheres around your cursor: Save the post, share the post with friends on Streamy (when you roll over this sphere, tiny boxes with your friends’ faces appear so you can choose which one), or through your social networks (when you roll over this sphere, tiny boxes appear giving you the option to share via Twitter, Facebook, FriendFeed or Digg. If you release the mouse, a new window pops up where you can check boxes next to the various services you want to share through (allowing you to share the link on all of them at once), or by typing in the email addresses of people you want to send the link to. You always have the ability to add comments to the posts you share. And with your chat client running in the right-hand sidebar, you can even drag a link straight from the reader interface to someone’s screenname to send it to them. As convenient as that all sounds, there are a couple or caveats. First, Streamy would be way more awesome if more people used it. Right now, the company says it has “tens of thousands of users” — but that isn’t many. As is, it’s unlikely that any of your friends belong to the site, hobbling cool features that are only possible when you’re sharing or conversing with other Streamy members. And second — despite its emphasis on sharing options and subscription management — it doesn’t actually let you share posts via Google Reader, a major sticking point. Hopefully these two problems will be remedied over time or in future iterations. The company has been fairly quick to respond to user feedback. Since it launched its public beta in March, it has successfully implemented Facebook Connect and chat. Beyond that, the interface is sleek and appealing — and of course, customizable with different skins. And I dare say its RSS interface is more intuitive and easier to navigate than Google Reader. With a collapsible three-column appearance that resembles Tweetdeck, it’s not too busy or complex for continuous use throughout the day. Based in Manhattan Beach, Calif., Streamy was originally founded in 2007 by Dan Mosites and Jonathan Gray. If it has raised any capital, it has yet to disclose it. According to data from Compete, its number of unique monthly visitors dropped from 45,000 to less than 10,000 between May and July of this year. It’s unclear what’s responsible for the drop off. The site has received glowing reviews so far. And as far as I’m concerned, if Streamy could import my email, I might never leave. - By Camille Ricketts | VentureBeat ]]> 95 2009-09-12 13:05:47 2009-09-12 20:05:47 open open streamy-your-hub-for-social-networking-news-sharing publish 0 0 post _edit_lock 1252786017 _edit_last 2 Incubator Seedcamp names 21 finalists http://www.ethiopianreview.com/business/97 Sat, 12 Sep 2009 20:06:52 +0000 http://www.ethiopianreview.com/business/?p=97 Seedcamp, an incubator for young startups in Europe, is hosting its third annual Seedcamp Week, a competition that provides mentorship and exposure for all of its finalists — and a $50,000 investment for each of its five winning “teams.” Today, it announced its 21 participating finalists. These companies range from information technology for the healthcare sector to artificial intelligence to gaming. Seedcamp says that, even in just three years, it has seen tidal changes in the startup landscape. When it first started in 2007, social networking companies dominated the applicant pool. Now, productivity and publishing applications have surged. How they make their money has also changed, with many startups blending premium subscription content with free content. Before, many of them still relied on advertising revenue. Unsurprisingly, Seedcamp has witnessed many gaming companies turn to virtual goods for a revenue stream. At the same time, enterprise applications have started licensing their technologies or offering it as a software as a service to bring in money. The incubator reports that more applications came from Scandinavia, Israel and the Balkans this year. Gaming apps became very popular in Central Europe, and Germany is leading the pack in music-based apps. That said, most of this year’s finalists still hail from the United Kingdom. Here’s a full list: Advertag (London) — Still stealthy. Boxed Ice (Bronsgrove, UK) — A service for monitoring server farms and CPU loads, that sends you email or text message alert whenever anything goes wrong. Brainient (London) — A site that helps companies create more effective, interactive videos, analyze their performance, optimize their impact, and ultimately monetize. Codility (Warsaw, Poland) — A recruiting tool for companies looking for proficient coders, it assesses candidates’ programming skills and allows human resources reps with no technical experience to screen applicants. Comufy (London) — A web-based app that lets you manage your contacts, and get in touch with any one of them via any messenger. Erply (Estonia) — Maker of software for commercial retail inventory and ecommerce that handles data across physical shops, online stores and offices and provides real-time dashboards with relevant data. Joobili (Budapest, Hungary) — A guide that lets you find when and where the hottest events in Europe are taking place, so if you’re planning a vacation without a destination in mind, you can determine the best place to be at any time. Kukunu (London) — Still stealthy. Los8 Solutions (Edinburgh, UK) — Maker of customized location-based applications for the iPhone and other devices for companies that want to build quickly from scratch. Patients Know Best (Cambridge, UK) — An online platform for patients to send secure messages to their doctors and nurses, receive information about their health, and get advice on preventative and followup care. Petsicon (Berlin) — An online medical guide, much like WebMD, for your dog. Plug in SEO (London) — A service that analyzes your site’s keywords, links and content in order to up page views and engagement. ShoutEm (Zagreb, Croatia) — A microblogging provider for niche communities that pulls in data from Facebook, Ning, Twitter and blogs, while allowing photo, video and link sharing. Pearl Systems (Bristol, UK) — A centralized dashboard for tracking ecommerce activities, including a task manager, billing options and data collection on inventory and sales. Talasim.com (Amman, Jordan) — A humor site and community in Arabic that includes photos, videos and articles. Teachable (London) — A library of teacher-made resources in any academic subject that are easily adapted to curricula. Vooices (Wigan, UK) — An app that gives you voice control over games, maps, communication with others, and even web site logins. VouChaCha (London) — Platform that delivers coupons and discount vouchers straight to your smart phone. Wondergraphs (Leuven, Belgium) — Still stealthy. World on a Hanger (London) — Fashion software that allows designers and labels to keep track of inventory, calculate material costs to set prices, collaborate as a team and streamline shipping. Yubitech (Ramat Gan, Israel) — Provider of technology that allows the migration of any application to any smart phone no matter which operating system it uses. Seedcamp Week 2009 will take place in London on Sept. 21 to 25. Most of the time will be spent in mentoring sessions and educational panels, with judging taking place on the 24 and winner being announced on the 25. - By Camille Ricketts | VentureBeat]]> 97 2009-09-12 13:06:52 2009-09-12 20:06:52 open open incubator-seedcamp-names-21-finalists publish 0 0 post _edit_lock 1252786012 _edit_last 2 Collecta releases API to spur development of real-time search apps http://www.ethiopianreview.com/business/99 Sat, 12 Sep 2009 20:08:06 +0000 http://www.ethiopianreview.com/business/?p=99 Collecta, a startup that models its architecture on financial data services, is the latest one to do this. It’s releasing an API today that will let other applications pull in its search results. For example, a Fantasy Football application could pull in real-time results from Collecta on all of a team’s players to let a sports fan know immediately how his favorite athletes are doing. Or a brand management tool could rely on Collecta to scour the web for what people are saying about a company in real-time. “We watch as events happen and shoot it out to our users in real-time,” said Gerry Campbell, Collecta’s CEO. “There are many exciting possibilities. This could be optimized for brands, companies or events like wildfires or TV season premieres.” Why’s real-time important? Companies like Collecta are betting that when you search Google, about a fifth of the time, you’re not necessarily looking for a comprehensive, encyclopedia-styled result, you’re looking for what’s happening now on the search term. Plus, because there’s a sufficient enough stream of user-generated content coming down the pipeline every second out of sites like Twitter, Facebook and Flickr, it’s time to figure out how to sort that by immediacy and relevancy. The problem with playing in the real-time space is that it’s difficult to retain mindshare for search when Google has become a household verb. Indeed, aside from Tweetmeme and OneRiot, traffic dropped off for every real-time search startup I covered back in June. By releasing APIs they hope to distribute their technology in other applications. What’s unusual about Collecta is that it derives its architecture from financial data services. Although real-time data has become hot in the last year in the tech industry, it’s been at work for a few decades in the financial sector. (Think about how economic data or an earnings report has to be zapped around the world so that human traders or algorithmic trading programs can execute millions of dollars of orders in a split-second.) These typically rely on private data networks for reliability and speed. The web is more complicated, because of the sheer amount of data a search engine would have to crawl through continuously to provide a real-time service. Collecta uses the XMPP instant messaging protocol, which is the same technology powering Google’s communication and collaboration tool Wave. “We’re not a financial service, but what we’re doing is we’re taking the best of that industry’s approach,” said Campbell, who was previously Reuters’ president of search and content technologies. “There’s a specific type of architecture that you need so that when a stock trade takes place in Beijing, traders can pick it up immediately in New York. It’s point to point.” The company has raised a little under $2 million from private investors and True Ventures. - By Kim-Mai Cutler | VentureBeat]]> 99 2009-09-12 13:08:06 2009-09-12 20:08:06 open open collecta-releases-api-to-spur-development-of-real-time-search-apps publish 0 0 post _edit_lock 1252786152 _edit_last 2 VitaPath gets $6M to fight spina bifida http://www.ethiopianreview.com/business/101 Sat, 12 Sep 2009 20:08:36 +0000 http://www.ethiopianreview.com/business/?p=101 VentureBeat]]> 101 2009-09-12 13:08:36 2009-09-12 20:08:36 open open vitapath-gets-6m-to-fight-spina-bifida publish 0 0 post _edit_lock 1252786117 _edit_last 2 New AMD graphics chip can power six monitors at once http://www.ethiopianreview.com/business/103 Sat, 12 Sep 2009 20:09:17 +0000 http://www.ethiopianreview.com/business/?p=103 VentureBeat]]> 103 2009-09-12 13:09:17 2009-09-12 20:09:17 open open new-amd-graphics-chip-can-power-six-monitors-at-once publish 0 0 post _edit_lock 1252786706 _edit_last 2 Madison Dearborn buys majority stake in NextG Networks http://www.ethiopianreview.com/business/105 Sat, 12 Sep 2009 20:19:15 +0000 http://www.ethiopianreview.com/business/?p=105 Madison Dearborn Partners, a private equity firm in Chicago, has taken a majority stake in NextG Networks, a San Jose, Calif.-based provider of antenna systems used to carry wireless signals, according to a filing with the SEC. The deal will give the company, which had to withdraw its $150 million IPO filing in May, an influx of $360 million. NextG has been on shaky ground since 2001, when it first plunged into the red. Without the public offering, it needed to find a strong backer to stay alive. Its previous investors include Gabriel Venture Partners, Oak Investment Partners, SVB Financial Group, former AT&T wireless vice chairman Wayne Perry, and Bay Harbour Management. Madison Dearborn now owns 61 percent of the company, but only has plans to see it grow more. There will be no interruption in service for customers. The deal was technically a merger between NextG and a shell company called Nodes Merger owned and operated by Madison. - By Camille Ricketts | VentureBeat]]> 105 2009-09-12 13:19:15 2009-09-12 20:19:15 open open madison-dearborn-buys-majority-stake-in-nextg-networks publish 0 0 post _edit_last 2 _edit_lock 1252786820 Satmetrix takes $1M for customer loyalty software http://www.ethiopianreview.com/business/107 Sat, 12 Sep 2009 20:20:03 +0000 http://www.ethiopianreview.com/business/?p=107 Satmetrix Systems, a Foster City, Calf. company that rovides customer loyalty software, has raised $1 million in debt financing, according to a regulatory filing. VentureBeat last covered it when it acquired its rival Informative in 2007. It has raised about $30 million from Aspen Ventures, Sutter Hill Ventures, Stanford University and Siebel Systems (since acquired by Oracle), and $75 million from New Enterprise Associates, Walden International, Apex Venture Partners, Sevin Rosen Funds, Crystal Internet Venture Fund, BlueRun Ventures, Levensohn Venture Partners and Global Catalyst Partners. - By Camille Ricketts | VentureBeat]]> 107 2009-09-12 13:20:03 2009-09-12 20:20:03 open open satmetrix-takes-1m-for-customer-loyalty-software publish 0 0 post _edit_lock 1252786803 _edit_last 2 Motorola unveils CLIQ smartphone, social MOTOBLUR service based on Android http://www.ethiopianreview.com/business/109 Sat, 12 Sep 2009 20:20:35 +0000 http://www.ethiopianreview.com/business/?p=109 VentureBeat]]> 109 2009-09-12 13:20:35 2009-09-12 20:20:35 open open motorola-unveils-cliq-smartphone-social-motoblur-service-based-on-android publish 0 0 post _edit_lock 1252786836 _edit_last 2 Facebook open-sources parts of FriendFeed’s real-time infrastructure http://www.ethiopianreview.com/business/111 Sat, 12 Sep 2009 20:22:13 +0000 http://www.ethiopianreview.com/business/?p=111 Facebook is making use of FriendFeed just a month after it acquired the pioneering social sharing start-up. It’s making parts of the real-time infrastructure behind FriendFeed open source. Called Tornado, the framework is written in Python and is designed to handle thousands of connections at the same time, which the company says makes it ideal for real-time web services. Facebook, long seen as a walled garden with locked-in profiles, has been slowly opening up. It made parts of its developer platform open, and Facebook Connect, which allows outside web services to interact with a person’s Facebook profile information, has been a boon to the site’s traffic. “We believe in releasing generically useful infrastructure components as open source as a way to increase innovation across the Web,” said Facebook’s open programs manager David Recordon. (Recordon is a recent hire — he started last Monday after leaving blogging company Six Apart.) FriendFeed was created by a star set of early Googlers, including Gmail creator Paul Buchheit and Bret Taylor, who rolled out Google Maps. Tornado’s release also gives a little insight into where the startup’s 12 employees have landed after the acquisition. Taylor is now Facebook’s Director of Products. Here’s Taylor on Tornado’s strengths: * All the basic site building blocks - Tornado comes with built-in support for a lot of the most difficult and tedious aspects of web development, including templates, signed cookies, user authentication,localization, aggressive static file caching, cross-site request forgery protection, and third-party authentication like Facebook Connect. You only need to use the features you want, and it’s easy to mix and match Tornado with other frameworks. * Real-time services - Tornado supports large numbers of concurrent connections. It is easy to write real-time services via long polling or HTTP streaming with Tornado. Every active user of FriendFeed maintains an open connection to FriendFeed’s servers. * High performance - Tornado is pretty fast relative to most Python web frameworks. We ran some simple load tests against some other popular Python frameworks, and Tornado’s baseline throughput was over four times higher than the other frameworks. - By Kim-Mai Cutler | VentureBeat]]> 111 2009-09-12 13:22:13 2009-09-12 20:22:13 open open facebook-open-sources-parts-of-friendfeed%e2%80%99s-real-time-infrastructure publish 0 0 post _edit_lock 1252787000 _edit_last 2 Duke Energy taps Ambient for Smart Grid communications http://www.ethiopianreview.com/business/113 Sat, 12 Sep 2009 20:23:04 +0000 http://www.ethiopianreview.com/business/?p=113 Duke Energy, one of the largest utilities in the U.S., has selected the Ambient Corporation to provide the wireless communication technology for its smart meter roll out. Based in Newton, Mass., the publicly-traded networking company provides equipment to beam energy consumption data two ways between consumers and utilities, and to integrate various Smart Grid applications and devices. Specifically, Ambient will be supplying Duke with its X-series communication node, a device that captures energy use data and transmits it wirelessly so utilities can easily keep track of supply and demand, and both residential and commercial consumers can change their behaviors to save energy and money. The node can exchange data with any device with a serial or Ethernet port, making it incredibly versatile. Also, just one node can handle data from multiple meters, cutting down on the amount of equipment needed. Duke, which services the Carolinas, Kentucky, Ohio and Indiana, has plans to widely deploy Smart Grid technology over the next five years. In Ohio alone, the utility recently got approval to install 700,000 smart meters — a project that will only require about 150,000 of the communication nodes. This is part of a larger Duke plan to roll out 1.5 million smart meters in Ohio and Indiana combined. No financial terms of the deal between Duke and Ambient have been disclosed. However, nothing in the contract makes the relationship exclusive. First, it is only slated to run through 2015. And second, the utility could still contract Ambient competitors to cover future smart metering projects. In fact, Duke has already tapped its rival, SmartSynch, to provide communications modules, and has mentioned a possible networking-gear partnership with Cisco Systems. Duke’s relationship with Ambient extends back about four years. They already collaborate on the ongoing installation of 50,000 smart meters in the Cincinnati-metro area — with the networking firm making about $15 million. In the meantime, Duke has applied for $200 million in stimulus funds through the Department of Energy. It it receives this money, it will accelerate its project in Indiana and Ohio. In anticipation, the utility has also contracted San Jose, Calif.-based Echelon to supply the actual meters for its projects. Ambient’s nodes, which tap into wireless networks mostly operated by Verizon, will be added to the transformers fed by these meters. All told, Duke has requested $421 million in government funds for smart meter installation and a Smart Grid demonstration project that could involve Boeing and Columbia University. Ambient, on the other hand, is scouting for more utility partnerships, with its investor Consolidated Edison in New York looking like the ripest prospect. - By Camille Ricketts | VentureBeat]]> 113 2009-09-12 13:23:04 2009-09-12 20:23:04 open open duke-energy-taps-ambient-for-smart-grid-communications publish 0 0 post _edit_lock 1252786985 _edit_last 2 Zynga accuses Playdom of stealing company secrets, gets restraining order http://www.ethiopianreview.com/business/115 Sat, 12 Sep 2009 20:23:40 +0000 http://www.ethiopianreview.com/business/?p=115 VentureBeat]]> 115 2009-09-12 13:23:40 2009-09-12 20:23:40 open open zynga-accuses-playdom-of-stealing-company-secrets-gets-restraining-order publish 0 0 post _edit_lock 1252787144 _edit_last 2 KingIsle’s Wizard101 online fantasy game hits 5 million users http://www.ethiopianreview.com/business/117 Sat, 12 Sep 2009 20:27:10 +0000 http://www.ethiopianreview.com/business/?p=117 KingsIsle Entertainment announced today that its magic-themed Wizard101 online game has hit 5 million registered players since its launch a year ago. It shows that you can really work wonders when you give away a game for free. Just kidding. This is actually pretty good critical mass for a startup game company. The Plano, Texas-based game company started out a year ago with a monthly subscription fee. Then it switched to a combination of subscription and free-to-play. That is, you could start playing for free and spend money only when you bought virtual goods, such as better weaponry, in the game. That free-to-play business model has fueled big hits around the world, from Nexon’s Maplestory fantasy game to Sony Online Entertainment’s Free Realms, which is near 5 million users in just five months on the market. With Wizard101, you can create characters that are training to become wizards. In the virtual world, you can earn points fighting others in duels, summoning creatures to fight for you. The game is one of the few that pitches itself as family entertainment, where parents can play with kids. Back in April, the company had 2 million registered users. So the growth has accelerated. One of the things that helped was the launch of prepaid cards, which let kids who don’t have credit cards pay cash for the prepaid cards in retail stores. They then use those prepaid cards to log into the game. The company is headed by Elie Akilian, who previously founded a network monitory firm, Inet Technologies, in 1989. He built that company to more than 500 employees (700 at the peak in 2000) and sold it to Tektronics in 2004 for $500 million. He used the proceeds of that to self-fund KingsIsle, giving it the financial freedom to spend years making its games. KingsIsle was founded in 2005 and has about 100 employees. - By Dean Takahashi | VentureBeat]]> 117 2009-09-12 13:27:10 2009-09-12 20:27:10 open open kingisle%e2%80%99s-wizard101-online-fantasy-game-hits-5-million-users publish 0 0 post _edit_last 2 _edit_lock 1252787296 Facebook Lite goes live; slimmed-down version hones in on the stream, sharing http://www.ethiopianreview.com/business/119 Sat, 12 Sep 2009 20:27:46 +0000 http://www.ethiopianreview.com/business/?p=119 VentureBeat]]> 119 2009-09-12 13:27:46 2009-09-12 20:27:46 open open facebook-lite-goes-live-slimmed-down-version-hones-in-on-the-stream-sharing publish 0 0 post _edit_lock 1252787268 _edit_last 2 Ultraband: The U.S. could match South Korea’s 1Gbps network — for $300 billion http://www.ethiopianreview.com/business/122 Sat, 12 Sep 2009 20:28:19 +0000 http://www.ethiopianreview.com/business/?p=122 VentureBeat]]> 122 2009-09-12 13:28:19 2009-09-12 20:28:19 open open ultraband-the-u-s-could-match-south-korea%e2%80%99s-1gbps-network-%e2%80%94-for-300-billion publish 0 0 post _edit_lock 1252787300 _edit_last 2 Google moves on plans to cheapen solar thermal energy http://www.ethiopianreview.com/business/124 Sat, 12 Sep 2009 20:29:05 +0000 http://www.ethiopianreview.com/business/?p=124 VentureBeat]]> 124 2009-09-12 13:29:05 2009-09-12 20:29:05 open open google-moves-on-plans-to-cheapen-solar-thermal-energy publish 0 0 post _edit_lock 1252787346 _edit_last 2 Next-generation netbooks’ killer feature: 3G Internet http://www.ethiopianreview.com/business/126 Sat, 12 Sep 2009 20:29:53 +0000 http://www.ethiopianreview.com/business/?p=126 VentureBeat]]> 126 2009-09-12 13:29:53 2009-09-12 20:29:53 open open next-generation-netbooks%e2%80%99-killer-feature-3g-internet publish 0 0 post _edit_lock 1252787394 _edit_last 2 Console video game sales fall for sixth straight month http://www.ethiopianreview.com/business/128 Sat, 12 Sep 2009 20:30:37 +0000 http://www.ethiopianreview.com/business/?p=128 VentureBeat]]> 128 2009-09-12 13:30:37 2009-09-12 20:30:37 open open console-video-game-sales-fall-for-sixth-straight-month publish 0 0 post _edit_lock 1252787681 _edit_last 2 Daimler: Hydrogen-powered cars a reality by 2015 http://www.ethiopianreview.com/business/130 Sat, 12 Sep 2009 20:31:51 +0000 http://www.ethiopianreview.com/business/?p=130 VentureBeat]]> 130 2009-09-12 13:31:51 2009-09-12 20:31:51 open open daimler-hydrogen-powered-cars-a-reality-by-2015 publish 0 0 post _edit_lock 1252787696 _edit_last 2 As cap-and-trade rankles Congress, Europe moves toward carbon tax http://www.ethiopianreview.com/business/132 Sat, 12 Sep 2009 20:34:58 +0000 http://www.ethiopianreview.com/business/?p=132 VentureBeat]]> 132 2009-09-12 13:34:58 2009-09-12 20:34:58 open open as-cap-and-trade-rankles-congress-europe-moves-toward-carbon-tax publish 0 0 post _edit_lock 1252787700 _edit_last 2 GigaOM’s Mobilize 09 — the 100-word version http://www.ethiopianreview.com/business/134 Sat, 12 Sep 2009 20:36:06 +0000 http://www.ethiopianreview.com/business/?p=134 VentureBeat]]> 134 2009-09-12 13:36:06 2009-09-12 20:36:06 open open gigaom%e2%80%99s-mobilize-09-%e2%80%94-the-100-word-version publish 0 0 post _edit_lock 1252787831 _edit_last 2 Skills of great entrepreneurs http://www.ethiopianreview.com/business/136 Sat, 12 Sep 2009 20:36:38 +0000 http://www.ethiopianreview.com/business/?p=136 VentureBeat]]> 136 2009-09-12 13:36:38 2009-09-12 20:36:38 open open skills-of-great-entrepreneurs publish 0 0 post _edit_lock 1252787798 _edit_last 2 Mobile VoIP is driving net neutrality http://www.ethiopianreview.com/business/138 Sat, 12 Sep 2009 20:37:14 +0000 http://www.ethiopianreview.com/business/?p=138 VentureBeat]]> 138 2009-09-12 13:37:14 2009-09-12 20:37:14 open open mobile-voip-is-driving-net-neutrality publish 0 0 post _edit_lock 1252787834 _edit_last 2 Twitter: You own your tweets, but we get to use them http://www.ethiopianreview.com/business/140 Sat, 12 Sep 2009 20:38:13 +0000 http://www.ethiopianreview.com/business/?p=140 VentureBeat]]> 140 2009-09-12 13:38:13 2009-09-12 20:38:13 open open twitter-you-own-your-tweets-but-we-get-to-use-them publish 0 0 post _edit_lock 1252788018 _edit_last 2 One PC displays images to 24 screens http://www.ethiopianreview.com/business/142 Sat, 12 Sep 2009 20:38:50 +0000 http://www.ethiopianreview.com/business/?p=142 VentureBeat]]> 142 2009-09-12 13:38:50 2009-09-12 20:38:50 open open one-pc-displays-images-to-24-screens publish 0 0 post _edit_lock 1252787996 _edit_last 2 Incubator TechStars Boston launches its first class of startups http://www.ethiopianreview.com/business/144 Sat, 12 Sep 2009 20:39:19 +0000 http://www.ethiopianreview.com/business/?p=144 VentureBeat]]> 144 2009-09-12 13:39:19 2009-09-12 20:39:19 open open incubator-techstars-boston-launches-its-first-class-of-startups publish 0 0 post _edit_lock 1252787960 _edit_last 2 Want to sell more stuff? List your competitors’ prices, study says http://www.ethiopianreview.com/business/146 Sat, 12 Sep 2009 20:41:02 +0000 http://www.ethiopianreview.com/business/?p=146 VentureBeat]]> 146 2009-09-12 13:41:02 2009-09-12 20:41:02 open open want-to-sell-more-stuff-list-your-competitors%e2%80%99-prices-study-says publish 0 0 post _edit_lock 1252788305 _edit_last 2 Scribd’s e-book store jump-starts The Sower’s mainstream success http://www.ethiopianreview.com/business/148 Sat, 12 Sep 2009 20:42:52 +0000 http://www.ethiopianreview.com/business/?p=148 Scribd, a company that lets you share documents online, is starting to shake up the book market. Author Kemble Scott’s previous novel SOMA was published traditionally and became a bestseller, but he decided that his new book, The Sower, included so many topical references that it might feel dated by the time it was published in 2010 or 2011. (That concern casts a rather dim view on the book’s chances for longevity as a work of literature, but I digress.) Instead, he decided to self-publish the book on Scribd’s website, selling it for $2 a copy and giving 20 percent of the revenue to Scribd, a much more favorable split than you’d find in the book industry. However, The Sower’s success on Scribd attracted the attention of publisher Numina Press, which used print-on-demand technology to get the book into stores in just 29 days. And now, The Sower just hit the San Francisco Chronicle’s fiction bestseller list — perhaps that’s not too surprising, since the book was written-up in the Chronicle last month, but placing just three spots behind the new book from Thomas Pynchon, one of the most respected novelists alive is simpressive. When Scribd first announced its e-book store in May, it had already enlisted quite a few well-known authors, including Tamim Ansary and Tim O’Reilly, and it has since signed deals with more traditional publishers like Simon and Schuster. The San Francisco company can use this as further evidence that Scribd publication can lead to mainstream success. Now it just has to make hitting the Scribd bestseller list as exciting as hitting The Chronicle’s … - By Anthony Ha | VentureBeat ]]> 148 2009-09-12 13:42:52 2009-09-12 20:42:52 open open scribd%e2%80%99s-e-book-store-jump-starts-the-sower%e2%80%99s-mainstream-success publish 0 0 post _edit_lock 1252788296 _edit_last 2 Microsoft’s $358M punishment nixed by judge in Alcatel patent case http://www.ethiopianreview.com/business/150 Sat, 12 Sep 2009 20:45:00 +0000 http://www.ethiopianreview.com/business/?p=150 VentureBeat]]> 150 2009-09-12 13:45:00 2009-09-12 20:45:00 open open microsoft%e2%80%99s-358m-punishment-nixed-by-judge-in-alcatel-patent-case publish 0 0 post _edit_lock 1252788301 _edit_last 2 Steve Jobs says no Apple e-book. No one believes him http://www.ethiopianreview.com/business/152 Sat, 12 Sep 2009 20:46:14 +0000 http://www.ethiopianreview.com/business/?p=152 VentureBeat]]> 152 2009-09-12 13:46:14 2009-09-12 20:46:14 open open steve-jobs-says-no-apple-e-book-no-one-believes-him publish 0 0 post _edit_lock 1252788444 _edit_last 2 The most popular digital goods are virtual money, weapons and gifts http://www.ethiopianreview.com/business/154 Sat, 12 Sep 2009 20:47:04 +0000 http://www.ethiopianreview.com/business/?p=154 VentureBeat]]> 154 2009-09-12 13:47:04 2009-09-12 20:47:04 open open the-most-popular-digital-goods-are-virtual-money-weapons-and-gifts publish 0 0 post _edit_lock 1252788487 _edit_last 2 Umoo offers fantasy stock trading for those who don’t want real losses http://www.ethiopianreview.com/business/156 Sat, 12 Sep 2009 20:48:02 +0000 http://www.ethiopianreview.com/business/?p=156 VentureBeat]]> 156 2009-09-12 13:48:02 2009-09-12 20:48:02 open open umoo-offers-fantasy-stock-trading-for-those-who-don%e2%80%99t-want-real-losses publish 0 0 post _edit_lock 1252788483 _edit_last 2 Uruguay’s tech sector could prove promising for VCs http://www.ethiopianreview.com/business/158 Sat, 12 Sep 2009 20:48:58 +0000 http://www.ethiopianreview.com/business/?p=158 VentureBeat]]> 158 2009-09-12 13:48:58 2009-09-12 20:48:58 open open uruguay%e2%80%99s-tech-sector-could-prove-promising-for-vcs publish 0 0 post _edit_lock 1252788538 _edit_last 2 It's not health care reform unless . . . http://www.ethiopianreview.com/business/160 Sat, 12 Sep 2009 20:51:43 +0000 http://www.ethiopianreview.com/business/?p=160 MSN Money]]> 160 2009-09-12 13:51:43 2009-09-12 20:51:43 open open its-not-health-care-reform-unless publish 0 0 post _edit_lock 1252788769 _edit_last 2 'Zombie' bankers haunt Wall Street http://www.ethiopianreview.com/business/162 Sat, 12 Sep 2009 20:53:34 +0000 http://www.ethiopianreview.com/business/?p=162 Never admit they're wrong All of these characters share one thing in common. It's one thing that separates them from those who flame out on Wall Street never to return. No matter how much evidence of failure is gathered against them, the Blodgets, the Spitzers and the Meriwethers never really admit they were wrong. They walk around as if nothing happened. They ride the notoriety of their names to new or refurbished careers. It won't be long before the recent crop of shamed Wall Street executives re-emerge. Who knows when Stanley O'Neal, the former head of Merrill, or Richard Fuld, the disgraced former chief executive of Lehman Brothers, will reappear on a talk show or in the financial pages talking about the new firm they're starting or the company that's hired them on as a consultant. Greenberg, who has never wavered in his defense of how he ran AIG and how his successors crippled the company, is back. It doesn't matter that earlier in the decade AIG was forced to restate earnings that lowered profits by $4 billion and had to pay a $1.64 billion settlement. It was under Greenberg that AIG got into the business of insuring credit default swaps -- the business that ruined the company. Can Hammerin' Hank help? Does he have any knowledge? Probably, if only in the same way Willie Sutton knows about bank security, Phillip Garrido knows about kidnapping and Bernie Madoff knows about audits. Plus, he's earned a shot. Greenberg has learned the rule about second lives on Wall Street: Never admit you screwed up the first one. Let's face it, Wall Street is really a culture that embraces its fallen, its malefactors, its miscreants and its failures as long as they hold their heads up and keep their swagger. - By By David Weidner | MarketWatch]]> 162 2009-09-12 13:53:34 2009-09-12 20:53:34 open open zombie-bankers-haunt-wall-street publish 0 0 post _edit_lock 1252788815 _edit_last 2 8 ways to stretch child care dollars http://www.ethiopianreview.com/business/164 Sat, 12 Sep 2009 20:55:45 +0000 http://www.ethiopianreview.com/business/?p=164 Team up with another family. Nanny-shares, where two families pool their resources and hire a single caregiver, can cut parents' costs in half. But Lisa McLellan, a professional child care provider and the founder of BabySittingWorld.com, says parents need to make sure both families share attitudes toward television viewing, diet, discipline and homework for the arrangements to work. She adds that some parents run into trouble when one family decides they no longer need the nanny, leaving the remaining family to pay the entire salary (or rush to find a different family to pair up with). Form a baby-sitting co-op. A co-op is usually formed by a group of six or more parents who take care of each other's children on a rotating basis. They earn points for their caregiving hours, which they then use to "buy" child care hours for their own children, McLellan explains. "It works well for people who work part-time hours, and it's a wonderful alternative to paying hourly for an occasional baby sitter," she says. On a more informal basis, two parents can simply trade caregiving hours with each other for a few hours a week. "If one parent has more children than the other, they can work it out with points like a baby-sitting co-op so that neither parent feels cheated," McLellan suggests. Seek out family day cares. In contrast to traditional day-care facilities, family-run day cares are usually operated out of the provider's home, where she often cares for her own children at the same time. It's usually far less expensive than traditional day care. Take advantage of increased competition. Because of the recession, more recent college grads, and some laid-off employers, are turning to caregiving as a way of earning a living. As a result, prices have come down a bit. Thiers estimates hourly rates have fallen around $1 to $1.50 since the recession began. Parents can look up the average rate in their area using Sittercity's cost calculator. Find a "hybrid" provider. The recession has inspired many caregivers to double up on their duties, offering housekeeping services and even French lessons, says Thiers. "Eight years ago, the average caregiver was 19 and in college. Today, the average age is 28. The younger ones are saying, 'How can I compete with older caregivers?'" Their answer is often to provide more forms of assistance to busy parents. Turn to your parents for help. When Nan Mooney, the author of "(Not) Keeping Up With Our Parents: The Decline of the Professional Middle Class,"http://www.assoc-amazon.com/e/ir?t=usncom-20&l=as2&o=1&a=0807011398 had her first child, she moved from New York to Seattle to live with her parents, which enabled her mother to help her with child care. Such intergenerational arrangements are increasingly common, she says, and can help parents manage costs while giving grandparents and grandchildren a chance to get to know each other better. Hire an au pair. Au pairs, or foreign nationals who live with families while caring for children up to 45 hours a week, are usually much cheaper than day care or nannies, largely because they are also receiving room and board. But the program, which is regulated by the State Department, also comes with some drawbacks: Au pairs can't stay with a family for more than a year, which means young children have to face frequent changes in their care providers, and it can be difficult to check references in advance. Only experienced au pairs with more than 200 hours of experience are allowed to care for children under the age of 2. - By Kimberly Palme | MSN]]> 164 2009-09-12 13:55:45 2009-09-12 20:55:45 open open 8-ways-to-stretch-child-care-dollars publish 0 0 post _edit_lock 1252789253 _edit_last 2 4 signs your home value could drop http://www.ethiopianreview.com/business/166 Sat, 12 Sep 2009 20:58:42 +0000 http://www.ethiopianreview.com/business/?p=166 Foreclosures in your neighborhood The quickest way to end up underwater is to live in a neighborhood that's plagued by foreclosures. When one home on your block goes into foreclosure, your home's value drops by 1%, Zandi says. But that isn't a one-to-one relationship. If two homes on a block go into foreclosure, your home's value will drop by more than 2%. As homes go into foreclosure, they create a domino effect, lowering home values throughout a neighborhood in a cascade beyond homeowners' control. (For more, see "Foreclosure nearby? It's your problem.") You can find neighborhood foreclosure listings at MSN Real Estate. Homes lingering on the market When "For Sale" signs linger in a neighborhood for three or more months, that may mean buyers and sellers can't agree on a price. In that environment, homes are unlikely to sell unless the sellers lower their asking prices. "The time on the market is always a good barometer of demand for homes and for the price homes are transacting at," Zandi says. "The longer it appears that neighbors are taking to sell their home the more likely it is they're not getting the price they want and that prices are falling." Compare the time it took for homes to sell in your neighborhood three years ago versus today; if it's taking weeks or months longer to sell, the prices homes can fetch are dropping, Zandi says. MSN Real Estate's home valuation tool includes time-on-market information. Increasing unemployment In most cases, the cities where homes have lost the most value during the past year also possess the highest unemployment rates. Homes in Merced, Calif., have lost 40.2% of their value year-over-year, the biggest loss of home values in the nation, according to Zillow.com. The city's unemployment rate is the fourth-worst among 372 metropolitan areas at 17.6%, according to July data from the Labor Department. El Centro, Calif., where home values plunged 37.6% year-over-year (the second-biggest drop in the country), has the worst unemployment rate at 30.2%. Individuals living in areas battered by high unemployment are likely to see their home values drop further, especially if they live in areas dependent on dwindling industries -- like Central Valley, Calif., and the mortgage lending business or Detroit and the auto industry, Zandi says. You can find the latest unemployment statistics for most metro areas here. Homes in disrepair Dented siding, peeling paint and broken porches could be signs that neighbors are having trouble making ends meet and can no longer pay to take care of their homes, Zandi says. Or they may have gotten an appraisal and discovered their homes have dropped in value and are no longer worth the cost of repairs. As the condition of homes in your neighborhood worsens, home values almost inevitably drop. What underwater borrowers have in common Risky mortgages: Some 77% of option-ARM borrowers and 50% of subprime mortgage borrowers were estimated to be underwater as of the first quarter of 2009, according to the Deutsche Bank report. With option-ARMs, borrowers could make minimum monthly payments that didn't even cover the loan's interest. As the market declined, these balances grew. With subprime mortgages, borrowers often had poor credit scores and little documentation of their financial situation. In both cases, borrowers often ended up with a large mortgage relative to the house's price. "The mere fact that they're not investing in their homes will affect you too," Zandi says. Date of purchase: Individuals who bought their homes between 2003 and 2008 are at risk of being underwater because they bought while prices were rising, Zandi says. The risk is greatest for those who bought in 2005 and 2006, as the market approached its peak. Excessive borrowing: Many individuals borrowed against their homes during the bubble by taking out second mortgages or tapping into home equity lines of credit or home equity loans. This borrowing left their homes with less equity to weather the drop in home values. Home's location: The areas that have been hit the hardest by plunging home values include the "sand states" of Arizona, California, Florida and Nevada because they brought the most speculation, easy credit and overbuilding during the bubble, Zandi says. Also hurt: the states where unemployment is especially high and manufacturing jobs have been eliminated like Michigan, Ohio and Indiana, Zandi says. - By AnnaMaria Andriotis | MSN]]> 166 2009-09-12 13:58:42 2009-09-12 20:58:42 open open 4-signs-your-home-value-could-drop publish 0 0 post _edit_lock 1252789249 _edit_last 2 Plug into electric-car batteries http://www.ethiopianreview.com/business/168 Sat, 12 Sep 2009 21:00:39 +0000 http://www.ethiopianreview.com/business/?p=168 MSN]]> 168 2009-09-12 14:00:39 2009-09-12 21:00:39 open open plug-into-electric-car-batteries publish 0 0 post _edit_lock 1252789239 _edit_last 2 Are outlet malls for suckers? http://www.ethiopianreview.com/business/170 Sat, 12 Sep 2009 21:03:15 +0000 http://www.ethiopianreview.com/business/?p=170 20% off? I'll take it! You don't have to tell me about the perils of outlet malls. I live about an hour and a half from one of the biggest: the famed Woodbury Common, home to 220 "premium" outlet stores. On my first trip there, about 10 years ago, I was single and shopping under the influence of the "Sex and the City" culture. I loved it. My second trip, about a year and a half ago, left me baffled. Where were the designer deals? The steals that made you gasp and race to the cash register? Every price seemed steep, from the Coach bags to the DKNY coats to the $60 Banana Republic jeans that I bullied my husband into buying. "I've never spent $60 on jeans in my life," he said, fuming. "Well, they look great on you, and they're marked down from $75. And, for Pete's sake, we've come all this way," I argued back. Little did I know, I was just another sucker who had fallen for some classic tricks from the outlet mall handbook. The outlet trap What makes people shop? Economists, marketers and psychologists have written volumes on this topic, and outlet malls have used that knowledge for their own gain. Shell says the outlet allure is based on two key factors: 1. Location. You might assume that outlet malls are situated far from urban centers because they need the space. But that inconvenience is also designed to create in shoppers' minds what economists call the "sunk cost fallacy." The 55 million people shopping at outlet malls each year, Shell says, drive a total distance that "equals 440,000 circumnavigations of the globe." The extra time and resources sunk into the trip encourage a ready-to-spend mind-set even before your car is parked. "Psychologically, all this (effort) must be repaid in terms of purchases made," Shell writes. That's how "Well, we drove all this way" turns into "Maybe I need a new toaster oven after all." 2. Value confusion. Not so long ago, factory outlet stores primarily sold the real McCoy, Shell says: off-season or slightly damaged -- but still genuine -- designer merchandise at reduced prices. Today, the merchandise at most outlet mall stores is a mix of actual designer items and products created specifically for outlet stores and outlet shoppers. The system is deceptive because it preys upon people's inability to identify the true quality that marks a designer item. Thus outlet shoppers put their faith in items that carry a certain luxury brand name, without understanding whether the items in hand are worth the money they're paying. This value confusion sets the stage for how outlet malls snare your business. Seductive marketing People are so seduced by the words "sale" and "discount," according to a study detailed in "Cheap," that they will buy an item that's "on sale" even when they know that the same thing is selling for less elsewhere. It's not the asking price that gets us to spend, researchers believe, but the amount "saved." MRIs of shoppers' brains have shown that spending triggers discomfort. Discounting helps alleviate that, Shell says, "so we associate more with the money we saved than the money we spent." Outlet malls exploit shoppers' discount cravings by setting artificially high reference prices, then marking them down. At one jewelry store, for example, Shell examined a necklace with an asking price of more than $3,000 and a discount price of $800. Its actual value: about $300. Few of the "original" prices you see in outlet stores are real, Shell says. The sleight of hand is designed to create a discount illusion so powerful that it drives you to buy. What you're buying is yet another issue. Is what you bought what you thought? To be sure, outlet malls wouldn't survive if they didn't offer some real bargains. Many companies still sell off-season goods, seconds (less-than-perfect items) or refurbished merchandise that offer both quality and good prices. But many retailers (Shell identifies Coach, Ann Taylor, Brooks Brothers, Donna Karan, The North Face and others) supplement that traditional outlet fare with made-for-the-outlet-mall products. Shell says you could be paying retail price for a lower-quality product, thinking you're getting a deal on a designer brand. Are those products inferior, as Shell claims? A 2006 survey of 6,000 outlet mall shoppers by Consumer Reports found that 77% said the quality of the outlet product was just as good as what they had bought at full-price stores. But a closer inspection by Consumer Reports analysts found that some outlet products were constructed of lower-quality materials. Companies say their outlet lines are still good values: * A Coach spokeswoman, Andrea Resnick, said the company does manufacture a separate outlet line, but she insisted that "it's the same excellent Coach quality." She acknowledged that the styles are often different. * A spokesperson for Brooks Brothers was more matter-of-fact about the difference between the full-price line and the factory outlet line, called 346 (after the street address of the company's flagship store on Madison Avenue). The 346 line of clothing is a different make and uses different materials, some of which are less expensive. The company says it considers its outlet brand "better" and its classic Brooks Brothers line "best." * "The North Face outlet stores offer the same premier, authentic and technical products that we create for our wholesale business and retail stores," says Lindsay Rice, a vice president of consumer sales. Only 5% of North Face outlet goods are created from surplus materials or previous season designs, he says; 95% are from the retail/wholesale channels. 'Careful to protect their brands' Outlet stores and malls have a long history of satisfied customers, says Linda Humphers, the editor-in-chief of Value Retail News, a trade publication for the outlet industry. "And retailers are very careful to protect their brands," she says. Humphers disputes Shell's assertion that outlet retailers use artificially high reference prices to make discounts look steeper and said Shell's tale about the $3,000 necklace was unusual. "No outlet mall developer would deny that there are clunkers in every bunch," Humphers says. "But there are lease requirements (in outlet malls) for 'truth in discounting.' . . . "I don't think outlets manipulate anything. It's insulting to the consumer to say that they don't know what they're buying." Getting a real deal How do you get your money's worth at the outlets? * Pay attention to details. Consumer Reports compared outlet items with retail ones and found clear differences in materials (cotton versus wool, for example), stitching and design. You're more likely to get good value if you know what you're looking for. * If you don't know, ask. Humphers says that outlet mall sales staffs can tell you whether that Gucci wallet or North Face backpack was designed for the outlet market or the retail market. "Some tags will indicate that it's a factory line," she says, like the Brooks Brothers 346 label. But retailers use various systems, and some don't flag outlet products. Again, it pays to ask. * Research prices before you go. One way to get around the reference pricing game is to research beforehand what the going price is for those jeans or set of pots and pans you want. * Deepen the discount. For truly rock-bottom prices, do what you'd do with any store: Shop at holiday sale times, search online for coupons (many outlets offer them) and ask for AAA or senior discounts, if they apply. * Check the clearance racks. Most retailers have clearance sections in their retail stores or on their Web sites. The most recent "state of the industry" report (.pdf file) by Retail Value News includes an informal survey of 170 companies operating nearly 6,000 outlet stores. The average discount at the outlet stores was 37%. It's not hard to do better. - By MP Dunleavey | MSN Money]]> 170 2009-09-12 14:03:15 2009-09-12 21:03:15 open open are-outlet-malls-for-suckers publish 0 0 post _edit_lock 1252789396 _edit_last 2 2359 66.60.98.1 2009-10-26 09:33:37 2009-10-26 16:33:37 0 0 0 Why every cold beer costs you more http://www.ethiopianreview.com/business/172 Sat, 12 Sep 2009 21:06:21 +0000 http://www.ethiopianreview.com/business/?p=172 Can you say bonanza? Take the top executives at Anheuser-Busch InBev (AHBIY, news, msgs). While consumers shelled out more for their blue-collar Budweisers in the first half of this year, compensation for Bud execs advanced 92%. The top 13 executives made $73 million in the first half of 2009, or $5.6 million each, on average -- up from $38 million a year before. And mind you, Anheuser-Busch InBev execs received a 79% pay increase in 2008, reminds Paul Hodgson of The Corporate Library, an independent corporate governance research firm. The increases are mainly due to gains from stock options and stock vesting. Anheuser-Busch InBev top brass aren't the only beer execs getting in on the act. Molson Coors Brewing (TAP, news, msgs) chief Peter Swinburn got a 120% pay increase in 2008, to $6 million from $2.7 million the year before, according to company reports. And Boston Beer (SAM, news, msgs) chief Martin Roper saw his pay go up 28% last year to $2.75 million, according to company filings. These pay increases for the beer-sector execs come at a time when executive pay has been going the other way. Median pay for CEOs of companies in the Standard & Poor's 500 Index ($INX) last year declined 8.7%, according to Equilar, an executive compensation research firm. But the big beer companies say the pay increases make sense because their companies just got a lot bigger through mergers and joint ventures. Molson Coors has grown as a result of a joint venture that combined its U.S. operations with those of Britain-based SABMiller (SBMRY, news, msgs) into a new company called MillerCoors. And of course, Belgian company InBev created an international beer monster last year when it bought Anheuser-Busch and created Anheuser-Busch InBev. Beer companies also say their execs deserve more because they are hitting higher performance targets. These are the profit gains that bring beer lovers pain -- because they translate to higher prices. The price increases In the first half of the year, beer prices in the U.S. went up 3.7% overall, according to beer expert Ben Steinman of Beer Marketers Insights. And beer companies said last week that more increases are on the way. "We plan on taking price increases on a majority of volume and in a majority of markets this fall," says an Anheuser-Busch spokesman. MillerCoors says it will also raise prices on some products. At least one producer of pricier imports, Heineken, has similar plans. Beer companies say they have to raise beer prices because they're still catching up with big increases in commodity prices over the last several years. "You can't take beer up $2 a case (at once)," says Harry Schuhmacher of Beer Business Daily. "It would be too much of a shock to the consumer. So beer went up way less than the costs went up for the last five years, and the beer companies just ate the difference. Now they are trying to get some of that back." The power to raise prices without hurting sales is rare in a recession. But these companies seem convinced you'll put your beer goggles on and keep buying. Recessions may make people want more beer, says a study from Mintel, a consumer research company. The theory: Beer drinkers crack open more brews during downturns as a form of escape, and also because they're forced to spend more time at home. Plus wine drinkers "trade down" to beer. The beer companies are also taking dead aim at consumers trying to save a buck in the recession. During hard times, you'd expect people to switch from relatively costlier domestic brands, such as Bud Light, Coors Light or Budweiser, which go for around $17.60 a case on average, according to Information Resources, a consumer research firm. That's exactly what's happening during this recession. Consumers have been turning to cheaper brands like Natural Light and Busch Light from Anheuser-Busch, and Keystone Light and Miller High Life from MillerCoors. These beers cost around $12-$14 a case on average, Information Resources says. Because that's where the demand is going, that's where the beer companies are charging more. The cheaper brands listed above are all up 4% to 5% this year, says Information Resources. Pabst Blue Ribbon, another low-priced beer, is up 6.74% in the first half of the year. In contrast, Bud Light, Coors Light and other premium brands are up less than 3%, Information Resources says. The companies "are attempting to reduce trade-down, and if there is trade-down, at least it will be to a higher price," explains Steinman. Of course, this price wrangling is made easier because just three beer companies -- Anheuser-Busch, MillerCoors and Pabst Brewing -- control 95% of the U.S. beer market. The price increases are having their desired impact on the bottom lines. Molson Coors saw earnings advance 20% in the second quarter to $205.4 million, or $1.11 a share, even though it shipped 3.2% less beer. Price increases, along with cost cutting, explain this feat. Likewise, at Anheuser-Busch InBev revenue advanced 2.9% in the first half of this year even though the amount of beer sold slipped 0.4%. Price increases, cost cutting and one-off savings on pensions following the merger helped the company boost profits 53% to $1.92 billion from $1.25 billion the year before. For investors, though, even this pricing power doesn't necessarily make the stocks a buy. "Beer is a big, mature industry. It averages 1% growth a year in most years," says Steinman, of Beer Marketers Insights. And earlier this decade, volume growth was flat because hard liquor was taking market share, he says. That trend could return once the recession ends and people have more money. Analysts are not wildly bullish on beer stocks: * Deutsche Bank and Goldman Sachs Group analysts do have "buy" ratings on Molson Coors because it looks cheap and because of expected continued cost savings in the U.S., which it can pass on to investors, if not consumers. But Carlos Laboy at Credit Suisse has a neutral rating on the stock, citing market-share losses in Canada and market weakness in the United Kingdom. * Deutsche Bank analyst Andrew Kieley likes Boston Beer, in part because a new plant in Lehigh, Pa., should help reduce costs and boost margins. But it looks like investors are already pricing this in. Kieley has a "hold" rating on this stock because, at $39.50, it trades above his 12-month price target of $39. * Goldman Sachs analyst Javier Gonzalez Lastra has a "neutral" rating on Anheuser-Busch InBev in part because of rising financing costs. And if it's any consolation for you beer drinkers, beer company workers -- if not their execs -- are sharing your pain. To reduce costs, Molson Coors has been cutting back on what any beer drinker would think of as a golden perk: free beer for life in retirement. And you thought the higher prices hurt. - By Michael Brush | MSN Money]]> 172 2009-09-12 14:06:21 2009-09-12 21:06:21 open open why-every-cold-beer-costs-you-more publish 0 0 post _edit_lock 1252789583 _edit_last 2 Ride this new bull market to gains http://www.ethiopianreview.com/business/174 Sat, 12 Sep 2009 21:08:37 +0000 http://www.ethiopianreview.com/business/?p=174 The signs all point up As a group, the indicators are currently more bullish than they have been at any time since 1989 -- except for a month ago. Leuthold says the S&P 500 will likely rise to 1,200 by year-end, a gain of almost 20% from its Aug. 31 close of 1,021. "We're not looking for a robust recovery," says Andy Engel, Leuthold's senior research analyst. "But we should get good-size stock returns over the next six to 12 months." Stack, president of InvesTech Research in Whitefish, Mont., comes to nearly the same conclusion. "Virtually all the technical blocks are in place for a bull market," he wrote recently. "Unless the technical backdrop changes, we expect the market to continue to work its way higher with the potential for solid double-digit gains over the next six to nine months." Neither Leuthold nor Stack sees an imminent return of the "good old days" of the 1980s and 1990s -- when stocks soared an annualized 18%. Nor do I. But that doesn't mean you won't make money in stocks. More reasons for more rally Want some other reasons the market should keep rising? They're numerous. Whenever we've had a horrible decade, the market has produced terrific returns in subsequent years. And while the economic recovery will be subdued, corporate earnings will jump compared with their depressed levels of the first half of this year. Finally, although the stock market isn't cheap, it isn't expensive, either. Leuthold says price-earnings ratios are at about their 135-year average. "The dirty secret is that the stock market almost never trades near median or 'fair' valuations, but tends to spend years -- sometimes decades -- to one side or the other of the median," according to Leuthold's monthly report. Still, the bull market may not last long. Leuthold is concerned about the economy. Government intervention, particularly by the Federal Reserve Board, was necessary to stave off disaster, says Engel, the Leuthold analyst. But he worries about the Fed's exit strategy. Unless the Fed times its withdrawal perfectly, the nation probably will either fall back into a recession or see a marked increase in the inflation rate. Stack worries, too, about inflation and the vulnerability of the dollar "12 to 18 months down the road." I see two ways investors can deal with those problems. You can take 10% or 15% of your money out of the market when things begin to look bleak again -- that is, attempt to time the market. But I wouldn't go overboard -- market timing is devilishly tricky. I'll be the first to admit that what you're reading here amounts to little more than a best guess. No one really knows which way the market will head, particularly over the short and intermediate term. Neither Leuthold nor I foresaw last September's market plunge, although Stack did call it. Buy high-quality companies for hard times The other way to prepare for hard times is to invest the lion's share of your stock money in the market's strongest companies. Even though high-quality, large-company growth stocks have led the market so far this year, most are still cheap relative to earnings, sales and assets. These blue chips typically sport strong balance sheets, feature powerful franchises and derive a significant amount of their business overseas -- all characteristics that should help the companies do well under most economic conditions. My longtime favorite mutual fund in this area, Vanguard Primecap Core (VPCCX), recently closed to new investors and restricted investments by existing shareholders. But Primecap Odyssey Growth (POGRX) is run by the same management team that is in charge of the Vanguard fund and is, in fact, almost identical to the Vanguard fund. Odyssey Growth's expenses, at 0.71% a year, are slightly higher than the Vanguard fund's yearly fees of 0.50%. Another good choice is Fidelity Contrafund (FCNTX), managed by Will Danoff. Its expenses are 0.94%. (Both Vanguard Primecap Core and Contrafund are members of the Kiplinger 25.) The other area to emphasize is emerging markets. Unlike the developed world, many emerging nations have healthy balance sheets and growing economies. My favorite funds are T. Rowe Price Emerging Markets Stock (PRMSX), SSgA Emerging Markets (SSEMX) and Vanguard Emerging Markets Stock Index (VEIEX). - By Steven Goldberg, Kiplinger | MSN]]> 174 2009-09-12 14:08:37 2009-09-12 21:08:37 open open ride-this-new-bull-market-to-gains publish 0 0 post _edit_lock 1252789842 _edit_last 2 4 problems that could sink America http://www.ethiopianreview.com/business/176 Sat, 12 Sep 2009 21:10:31 +0000 http://www.ethiopianreview.com/business/?p=176 We don't like to work Sure, now that jobs are scarce, everybody's willing to put in a few extra hours to stay ahead of the ax. But look around: We still expect easy money, hope to retire early and embrace the overly simplistic messages of bestsellers like "The One Minute Millionaire" and "The 4-Hour Work Week." Unfortunately, the rest of the world isn't sending as much money our way as it used to, which makes it harder to do less with more. White-collar jobs are now migrating overseas just like blue-collar ones. Kids in Asia spend the summer studying math and science while American mall rats are texting each other about Britney and Miley. "We need a different mind-set," says Guillen. "People need to invest more in their own future. Instead of buying stuff at the mall, spend the money on evening classes. Learn a language or skills you don't have." I recently interviewed entrepreneur Gary Vaynerchuk, who transformed his father's neighborhood liquor store into a $60 million business anchored by the Web site winelibrarytv.com. An overnight success? Hardly. Vaynerchuk has big plans, and he works at least 16 hours a day to achieve them. "If you want to work eight hours a day," he says, "you're going to get eight-hour-a-day results. There's nothing wrong with that, but I don't want to hear you bitch about money if you're only willing to work eight hours a day." Vaynerchuk is only 33, but he has something in common with John Bogle, the founder of the Vanguard mutual fund company, who's 80 years old. I talked to Bogle recently about how Americans need to change their approach to work and money. He told me this: "We need more caution, more savings and we may have to work harder. Maybe we need more people who like to work and don't count down every day till retirement." Nobody wants to sacrifice Why should we? The government is standing by with stimulus money, banker bailouts, homeowner aid, cash for clunkers, expanded health care and maybe more stimulus money. And most Americans will never have to pay an extra dime for any of this. Somehow, $9 trillion worth of government debt will just become somebody else's problem. When he was campaigning, candidate Barack Obama dabbled with the "personal responsibility" theme, and in his acceptance speech in November he called for a "new spirit of sacrifice." But now that he's in office, there's less interest in such quaint ideas. During Obama's prime-time news conference about health care reform in July, a reporter asked the president if ordinary Americans would have to give up anything in exchange for better, more widely available care. Obama's answer: "They're going to have to give up paying for things that don't make them healthier." Hooray! Something for nothing! He may as well have said, "Here's a magic pill that will make all your problems go away." Obama's plan is to get a tiny portion of the American public -- the wealthy -- to pay higher taxes for the benefit of the majority. Hey, while we're at it, let's see if we can convince 1% of the population to bear the entire responsibility for fighting two open-ended wars that are supposedly in the interest of every American. It would just be too uncomfortable to tell the middle class that if they want something, they need to earn it themselves. We're uninformed The health care smackdown -- sorry, "debate" -- is Exhibits A, B and C. The soaring cost of health care is a problem that affects most Americans. It's shrinking paychecks, squeezing small businesses, bankrupting families and swelling the national debt. Yet outraged Americans seem most concerned about fictions like death panels and government-enforced euthanasia, while clinging to the myth that our current system of selective availability and perverse incentives somehow represents capitalist ideals. But let's take a break from that burdensome issue to examine the likelihood that President Obama was born in a foreign country and hoodwinked America into believing he was eligible to run for president. People who lack the sense to question Big Lies always end up in deep trouble. Being well informed takes work, even with the Internet. In a democracy, that's simply a civic burden. If we're too foolish or lazy to educate ourselves on health care, global warming, financial reform and other complicated issues, then we're signing ourselves over to special interests who see nothing wrong with plundering our national -- and personal -- wealth. The iCulture We may be chastened by the recession, but Americans still believe they deserve the best of everything -- the best job, the best health care, the best education for our kids. And we want it at a discount -- or better yet, free -- which brings us back to the usual disconnect between what we want and what we're willing to pay for. Rationing is a dirty word, so we can't have a system that officially rations something as vital as health care or education. Instead, we have unacknowledged, de facto rationing that directs the most resources to those with the best connections, the most money or the savvy to game the system. What keeps the rest of us content is the illusion that we, too, will eventually be able to game the system -- as long as the government doesn't interfere. Solutions that serve some public good -- like Social Security and bank deposit insurance in the 1930s and Medicare in the 1960s -- usually require everybody to give something to get something. If it works, the overall benefits outweigh the costs. Good programs leave individuals the option to pay more if they want more. Bad programs promise more than they can deliver. But often we don't know that until it's too late. - By Rick Newman | MSN]]> 176 2009-09-12 14:10:31 2009-09-12 21:10:31 open open 4-problems-that-could-sink-america publish 0 0 post _edit_lock 1252789831 _edit_last 2 Receipt-free future: Just a dream? http://www.ethiopianreview.com/business/178 Sat, 12 Sep 2009 21:12:22 +0000 http://www.ethiopianreview.com/business/?p=178 Change starts with your credit card I recently visited an Apple Store again and was reminded just how simple it is to e-mail myself a receipt. Just a scan, a swipe and some questions -- so easy it's hard to understand why we aren't making any progress toward a receiptless utopia. And so the journalistic question was formed: What would it take to trash the receipt? A costly, complicated and unlikely chain reaction. For the vision to become a reality, it's going to have to start with the credit card companies. The key flaw in Apple's strategy is that you have to give the store your e-mail address in order to get the receipt e-mailed. That's fine when receipts by e-mail are a one-store novelty, but needing to give our e-mail address every time we shop at a different store would quickly grow annoying. If we want wholesale change, we're going to have to figure out a centralized way for stores to access our e-mail addresses. This is where the credit card companies come in. First thought: Let's put our e-mail addresses on that magnetic strip on the back of the card. All sorts of other data lives back there, so there's no reason why our e-mail addresses can't as well. I put in a call to four big credit card companies -- American Express, Discover, MasterCard and Visa -- and all of them either declined comment or did not respond. But I spoke with other experts in the industry, and they say it's possible to pop some more data onto that magnetic strip. Digitizing would create a gold mine There are, of course, privacy concerns about putting even more personal information onto a piece of plastic that already holds far too much. (Note that the issue isn't giving the card companies our e-mail addresses in the first place, as they probably already have them. It's just embedding them in the cards.) Plus, we may not want each merchant we visit to get our e-mail addresses, especially without the sellers explicitly asking for them. And we'd need to figure out a way to stop them from keeping our information, which would entail getting the credit card industry's standards council involved, which would only slow things down. So, a compromise: Let's not have our receipts e-mailed to us. Let's just have them digitized. Under that scenario, the credit card companies (or the banks that offer the cards) would index our receipts online. We'd log into, say, visa.com/receipts and see a list of all of our purchases, just as we do now when we do online banking. But then you could click on the purchase and see its receipt. Now you have a digital copy that eliminates the need for a paper one. This is a gold mine for whoever runs the site, should the company be brazen enough to profit off your personal data. A digest of all your purchases is tailor-made for targeted advertising. Now the bank or credit card company will know not just that you shop at Whole Foods, but also that its Two-Bite Brownies are a regular buy. Cue the coupon for brownie mix from Trader Joe's. Plus, in an industry that lacks innovation, the digitized receipt feature is one that can actually attract new customers. American Express, if you can figure out how to digitize receipts faster than Visa, I swear I'll switch to your service. The convenience would be worth the inconvenience. A burden on merchants So let's suppose that a credit card company would be willing to host (or even e-mail) the digital receipts. That's only a piece of the systemic change necessary to kill the paper receipt. The credit card companies aren't magically going to get a copy of the receipt. Somebody's got to send it to them. Which brings us to the merchant side of the transaction. The way it works now: You swipe your card, the swipe-box reads the data, it confirms a few details with the credit card company, and then some software gets involved if you stylused your signature on one of those touchscreens. That's going to have to change in our paperless Xanadu. Software will have to be tweaked so that after the box contacts the credit company to confirm your card's legitimacy, it then turns around and sends a scan of the receipt. That's a relatively easy change for the coders, according to an industry executive I talked to, but an expensive one for the stores. The owner of a company that implements these kinds of things told me replacing software could run $60,000 to $100,000 for a large chain -- in each store. Making your entire network of stores receiptless a la Apple would be a major financial investment, and one without much payback. The only thing that would justify it would be savings on materials -- negligible when a roll of receipt paper runs just less than $1 -- and the public relations benefit. Not exactly a haul. So this may be something that only new businesses attempt. It's cheaper to start fresh than retrofit or replace. And what about cash? That's just the process for major chains. The transition would be even more difficult for small retailers, who really wouldn't be able to afford a retrofit. And many wouldn't be able to upload the digitized receipts, either. That kind of transmission is going to take far more time for the back-and-forth exchange, and many small retailers use dial-up, not broadbrand, to verify data with credit card companies. Lines at the narrowband retailers would get out of hand if everybody waited for their receipts to be pushed online. Plus, for the small retailers, a paperless receipt system wouldn't be truly paperless. They would still need to keep a copy of all the signed receipts in case somebody wanted to make a return. The consumer may still have a digital copy, but it's not a pure break from the tyranny of paper. All of this doesn't even mention all of the cash-based purchases in the country, which are on the rise, according to some researchers. Systemically digitizing cash receipts is an intractable problem, one that will require us to become a cashless society. But that's a personal crusade for another article. So I begrudgingly and all-too-appropriately wave my white flag. You win, receipts. You're too entrenched for a grass-roots campaign to force out. It's up to big business to get rid of you; the credit card companies are our only hope. And for obvious reasons, that means there isn't much hope at all. Unless (this is the optimist in me speaking) the credit card companies refused comment because they are planning to move us to a receiptless future themselves. If that's true, then consider me a supporter of their lack of transparency. Whatever it takes to make the world a less cluttered, more searchable place. In the meantime we'll have to settle for halfway solutions like Neat Receipt. It's a scanner that digitizes receipts and makes them searchable . . . but only after they've been printed out on paper. I spoke with Neat Company's vice president of marketing, and he told me their business is growing 80% annually. It's evidence that there's a market for digital, sortable receipts. And proof that we have a long way to go before we can slip free of their papery grasp. - By Chadwick Matlin | The Big Money]]> 178 2009-09-12 14:12:22 2009-09-12 21:12:22 open open receipt-free-future-just-a-dream publish 0 0 post _edit_lock 1252790068 _edit_last 2 Students borrow more than ever for college http://www.ethiopianreview.com/business/180 Sat, 12 Sep 2009 21:14:18 +0000 http://www.ethiopianreview.com/business/?p=180 WSJ]]> 180 2009-09-12 14:14:18 2009-09-12 21:14:18 open open students-borrow-more-than-ever-for-college publish 0 0 post _edit_lock 1252790061 _edit_last 2 The Ivy League school of investing http://www.ethiopianreview.com/business/183 Sat, 12 Sep 2009 21:20:40 +0000 http://www.ethiopianreview.com/business/?p=183 David Swensen is the Albert Pujols of the money-management world. Over his career, Pujols, the power-hitting first baseman of the St. Louis Cardinals, sports a freakishly low ratio of strikeouts to home runs. When baseball historians observe statistics such as these, along with Pujols' consistently high batting average and the lofty number of runners he has driven in, they compare the slugger's career figures with those of such legends as Lou Gehrig and Ted Williams. Swensen is the chief investment officer of Yale University's endowment fund. From June 1985 through June 2008, Yale's endowment returned an annualized 16.6%, an average of 5 percentage points per year better than both the Standard & Poor's 500 Index ($INX) and a balanced index holding 60% in stocks and 40% in bonds. That's a 40-fold multiplication of wealth. He achieved that feat with one-third less volatility than the S&P 500. He had only one down year (losing 0.2% in the year that ended in June 1988, a period that included the crash of 1987) and compiled a Sharpe ratio of 1.12 over that 24-year span. The Sharpe ratio is academic lingo for risk-adjusted return. A ratio in excess of 1 for a long period is a relatively rare event -- kind of the statistical equivalent of Pujols' high homer-to-strikeout ratio. No one's immune this time Alas, even Swensen is mortal. Yale's endowment suffered terribly over the 12 months that ended in June. The school hasn't yet reported performance figures, but we'll guess that the endowment lost 25% to 30%, not a surprising conclusion given that virtually all financial markets collapsed in tandem during last year's unpleasantness. Swensen, who in the bond arena seems to prefer only government securities (both the traditional and inflation-protected sort), appears to have allocated only 4% to Treasurys, one of the few asset class that held up during the financial crisis. A lack of financing and liquidity crushed alternative investments, such as venture capital and leveraged buyouts, longtime staples of Swensen's strategy. But even though the endowment sank 30% the past year, it has still returned about 14% annualized from June 1985 through June 2009. Ideas we can all use Can individual investors learn and borrow ideas from Swensen? Mebane Faber says yes. Faber, a money manager in El Segundo, Cal., analyzed the "super endowments" of Yale and Harvard (Harvard's endowment gained an annualized 15.2% from June 1985 through June 2008 with even lower volatility than Yale's). He published the results in "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets," a book that he co-authored with his colleague Eric Richardson. Understand, though, that you can't precisely replicate the Ivy endowment portfolios. When Benjamin Franklin opined that the only certainties in life are death and taxes, he evidently wasn't thinking about university endowments. Unlike the rest of us, the funds pay no taxes and never perish. Moreover, the endowments have huge staffs and access to investments, such as private-equity partnerships and hedge funds, that are unavailable to the common folk. Still, Faber thinks you can learn much from endowments' risk-management techniques -- for example, the way the funds combine portfolios of risky but uncorrelated assets in a way that should, over time, produce respectable risk-adjusted returns. Portfolios such as these are prepared for almost any scenario (for example, inflation or deflation; dollar strength or dollar weakness) and should enjoy much of the fruit of bull markets while dampening the downside of bear markets. Based on his study of the Ivy endowments, Faber has constructed a low-cost portfolio of 10 exchange-traded funds (see the table below) that draws on the Ivys' methods of allocation, diversification and risk management. Faber recommends periodic rebalancing of the portfolio. If you're interested in adding his market-timing strategies to the mix, check out his book or visit TheIvyPortfolio.com. - By Andrew Tanzer | Kiplinger]]> 183 2009-09-12 14:20:40 2009-09-12 21:20:40 open open the-ivy-league-school-of-investing publish 0 0 post _edit_lock 1252790629 _edit_last 2 The new math of FICO credit scores http://www.ethiopianreview.com/business/185 Sat, 12 Sep 2009 21:22:47 +0000 http://www.ethiopianreview.com/business/?p=185 Not all lenders use the model Borrowers shouldn't expect their credit to be graded by this new scale on every loan application. Not all lenders have adopted the new model, though more than 400 lenders are using or testing FICO 08, the company said. In a statement, Equifax said, "Currently, many lenders and businesses are validating the new score within their systems, and adoption will vary by financial institution based on business requirements and market need." Many credit-card companies, auto lenders, regional banks and credit unions may have already adopted FICO 08, Ulzheimer said. But for mortgages, lenders doing traditional conforming loans backed by Freddie Mac and Fannie Mae likely haven't made the move yet, he said. That's because they're waiting for Freddie and Fannie to approve its use. Freddie Mac and Fannie Mae "are essentially the lender . . . they're the ones that set the underwriting criteria," he said. Ulzheimer said he expects Freddie and Fannie to adopt FICO 08 by the end of the year. Fannie declined to comment on FICO 08; Freddie wasn't able to provide a comment prior to publication. Be proactive about your credit While FICO 08 will help consumers' credit scores in some cases, people still should take steps to improve their credit. Granted, it's impossible for consumers to calculate their FICO scores themselves, said Rodney Anderson, of Rodney Anderson Lending Services in Plano, Texas. "It's almost like the Coca-Cola formula. No one has access to the Coca-Cola formula, no one has access to the FICO formula," he said. But by being proactive, you can start to work toward a higher score, something that will serve you well every time you apply for a loan. Some suggestions: * Monitor your credit reports and correct errors. Don't just look for negative events on your record; also examine your credit limits to make sure they're accurate. Credit limits that appear lower on the report than they actually are have the potential to hurt your score, Anderson said. * Pay bills on time and keep card balances low. Your payment history, and the amount you owe on your accounts as a ratio of the amount of credit you have access to, are important components of your score, Foster said. FICO 08 is more sensitive to high credit usage, and consumers may see a lower score if their reported balance on one or more cards is near the account's limit. * Take on new credit only when you need it. Some credit cards come with great offers, including a percentage off your bill if you sign up at the cash register. If you accept, make sure you're getting a big enough benefit to make it worthwhile -- taking on additional credit could end up dinging your score, Foster said. - By Amy Hoak | MarketWatch]]> 185 2009-09-12 14:22:47 2009-09-12 21:22:47 open open the-new-math-of-fico-credit-scores publish 0 0 post _edit_lock 1252790631 _edit_last 2 Caution: This rally is out of hand http://www.ethiopianreview.com/business/187 Sat, 12 Sep 2009 21:24:19 +0000 http://www.ethiopianreview.com/business/?p=187 Insiders are now selling I am not as worried as Rodriguez, but it is at times like these, when a rising market sweeps our spirits up with it, that investors need to evaluate their emotions and consider whether their beliefs and actions are justified. In August, corporate insiders -- officers and directors of public companies -- sold nearly 31 times as much stock as they bought. From last September through March, in the depths of the bear market, that ratio was just 2-to-1, according to TrimTabs Investment Research of Sausalito, Calif. The long-term average is about 7-to-1. The people who run companies don't know exactly what the future holds, but they do know more about their own companies than outsiders do. If they are furiously selling, how eagerly should the rest of us be buying? Chasing the past It is well-known that investors chase past performance, buying whatever has just made the most money for other people. What isn't commonly understood is that investors also chase their own past performance, buying more of whatever they themselves have made the most money on. Research by economist David Laibson of Harvard University shows that 401k participants tend to add significantly to whichever funds they already own that have gone up the most. "Investors expect that assets on which they personally experienced past rewards will be rewarding in the future, regardless of whether such a belief is logically justified," Laibson says. That is exactly what seems to be happening now: In June, according to Hewitt Associates, 401k participants put 41.0% of their new contributions into stocks. In July, as the Dow shot up 725 points, they pushed that rate up to 42.3%. Participants also cut their contributions to "lifestyle" funds that keep a portion of their assets in bonds and cash. Hot streaks don't last forever The market's latest hot streak makes the future feel predictable, but it isn't. The Dow had an uncannily similar 46.5% gain in the 117 days that ended April 9, 1930; it lost almost 51% over the next year. A 47% upswing in 1971 led to a long, choppy decline of more than 37%. The market also could go nowhere, as it did for months after a similar-size gain in 1975. Or it could hit new heights, as it did in 2004 after rising 47% from the lows of 2002. In his classic book "The Intelligent Investor," the great money manager Benjamin Graham wrote that "the investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances." If you can't exercise that kind of emotional control, then by Graham's definition you aren't an investor at all. I see nothing wrong with dollar-cost-averaging into this market, purchasing a fixed amount every month -- especially in a low-cost stock index fund. But to buy more of what has gone up, precisely because it has gone up, is to fall for the belief that stocks become safer as their prices rise. That is the same fallacy that led investors straight into disaster in 1929, 1972, 1999, 2007 and every other market bubble in history. The market's light has turned yellow. Don't try to run it. - By Jason Zweig | WSJ]]> 187 2009-09-12 14:24:19 2009-09-12 21:24:19 open open caution-this-rally-is-out-of-hand publish 0 0 post _edit_lock 1252790662 _edit_last 2 6 financial experts' worst goofs http://www.ethiopianreview.com/business/190 Sat, 12 Sep 2009 21:28:17 +0000 http://www.ethiopianreview.com/business/?p=190 Jean Chatzky: 18% credit card Financial claim to fame: best-selling author of "The Difference: How Anyone Can Prosper in Even the Toughest Times," financial editor of NBC's "Today" show and host of a daily show on Oprah Radio. Big money mistake: Years ago, Chatzky racked up $6,000 in credit card charges at a brutal 18% APR. At the time, the sum represented about six months' salary, she says. Despite the debt, she was diligently stashing money into her savings account, which earned a paltry 3% rate. Even though she had more than enough in her savings to cover the full amount of the debt, there was a psychological component to her poor financial decision. "I felt safer with the money in the bank," she says. How she changed: Chatzky finally did the math and paid off her debt with savings. "I basically wiped out the emergency cushion to pay off the credit card debt," she says. "But I knew if I had an emergency and needed to buy a plane ticket for a flight home to see my parents, for example, that I would still be able to put it on my credit card." Lesson learned: Don't let savings goals interfere with paying off credit card debt. With credit card companies slashing credit lines, she says she might be a bit more conservative today than she was back then, perhaps leaving enough in savings to cover a month's rent. But the general advice still holds. "It really doesn't make sense to keep money in savings while you're paying money on high-rate credit card debt," she says. Ramit Sethi: Tuition at the school of hard knocks Financial claim to fame: author of "I Will Teach You to Be Rich" and blogger of a site by the same name. Big money mistake: When Sethi was a high school student, he earned plenty of college scholarships, including a $2,000 scholarship that arrived as a check made out in his name, instead of the school's. Sethi immediately came up with a plan. "I took the money and invested in the stock market," he says. He invested in any company he thought might get hot, but his picks were anything but. "I lost half the money almost immediately," he says. How he changed: The quick, dramatic loss made him change his entire approach to his finances. "I realized that I had no plan and no context for what I was doing," he says. "If I had spent even two hours reading one personal finance book, I would have learned a lot." The loss prompted him to spend a year of learning about money from books, magazines and TV shows. He also began studying the way that psychology affects how we spend, save and invest. Instead of gambling his money on individual stocks, he focused on the many less-risky ways of improving his bottom line, from automating his savings to negotiating his fees. Lesson learned: Understand risk and reward. There are a lot of ways to end up with more money in your bank account without gambling your cash on individual stocks. Dave Ramsey: Risk is a luxury Financial claim to fame: host of the "Dave Ramsey Show" and author of "The Total Money Makeover." Big money mistake: Ramsey jokes that when it comes to his personal finances, he's "done stupid with zeros on the end." When he was in his 20s, he started buying and flipping real estate. "I was making crazy money, and by the time I was 26, I had acquired more than a million dollars' worth of property," he says. "The problem was that most of it was in the form of a short-term note. One of the local banks that held one of my notes was bought out and decided to call in my note (requiring full payment). Other banks started catching on, and over the course of 2 1/2 years, (my wife and I) lost everything we had. We were sued, foreclosed upon and, ultimately, went bankrupt." How he changed: Bankruptcy changed Ramsey's entire mind-set. "I swore off debt," he says. "My wife and I don't buy anything unless we can pay cash for it." Lesson learned: Leave the real estate flipping to the pros or the wealthy, and live within your means. "Real estate is a great investment if you have the cash to buy it," he says. "I'm not against a mortgage for your primary residence. But if you plan to buy a second home or just buy and flip properties, you need to use cash. I had leveraged too much of my portfolio and the house of cards I built came crashing down." Vicki Robin: Money makes things different Financial claim to fame: co-author of "Your Money or Your Life" and Yourmoneyoryourlife.info. Big money mistake: Robin had always been a renter. But when a friend who shared her basic values of independence, professionalism and sustainability suggested that the two go in on a house together, she jumped at the chance. "It seemed like a slam-dunk," she says. "We'd each put in half. We had big visions for this place, and we seemed to totally align." Except that they didn't. Despite their many shared values, the way they planned to spend money on the house wasn't identical. "She thought, well, we're going to share everything, and she started making big decisions for her area that she thought I was going to pay for," she says. "We were a couple of people who had been empowered and successful. We made our own decisions. But we were bumping into having to check in with somebody else about what to do regarding money." How she changed: Smart, detailed communication turned out to be the key. "We were just making our own private assumption," she says. "But now we've established a shared agreement about what's mine, what's thine and what's ours." Lesson learned: In any financial partnership, whether it's your spouse or a business partner, be willing to talk about every last detail before making a commitment. "We had had conversations (about money), and we both talked about what our values were. But we didn't hear what the other person was saying," Robin says. "Too often people's values are aligned, but their strategies for enacting their values are different." Brian Preston: Losing money, losing sleep Financial claim to fame: host of the Money Guy blog and podcast, and a certified public accountant, Certified Financial Planner and personal financial specialist at Preston and Cleveland Wealth Management LLC in McDonough, Ga. Big money mistake: Preston graduated from college in the mid-'90s, when the Internet was changing the world. He was convinced he could ride the boom and make some serious cash, so he took $2,000 and looked for the sure winners. "I decided that it would be a great idea to invest in several Internet mutual funds," he says. "I doubled my money within six months and thought I was a financial genius." He topped out at $6,000, but then slid back when the bubble burst. He didn't get out until his original investment had dwindled to a measly $400. How he changed: Preston returned to personal-finance fundamentals -- a view he preaches on his twice-monthly podcast. "A low-cost, broadly diversified portfolio is much more consistent in performance, and it allows you to sleep better at night," Preston says. Lesson learned: Nobody can foretell the future, and today's top stocks are often tomorrow's dustbin liner. "I have learned that chasing sectors and the current hot investment trend is not a fruitful endeavor," he says. Jonathan Clements: You can't outsmart the market Financial claim to fame: author of "The Little Book of Main Street Money" and former Wall Street Journal columnist. Big money mistake: Years ago, Clements got an $8,000 windfall when his father liquidated a life insurance policy, and he decided to try his hand at stock picking. He chose four. Two did well, one broke even and one was nothing short of disaster. "It seemed like a clever investment," he says of that last stock. "The company was a cinema operator that had also amassed a series of investments, many of them in Internet companies. A little math indicated that, on a per-share basis, this investment portfolio was equal to the parent company's stock price, which meant you were effectively getting the cinema operation for free." His brilliant strategy proved to be less intelligent than he thought. The stock's value plunged by 90% when the tech bubble burst, and the cinema operation didn't fare much better. "A year after I bought the share, I bit the bullet and took my tax loss," he says. How he changed: Clements is done with cherry-picking stocks. "I haven't bought an individual stock since then," he notes. Lesson learned: "Be leery of excessive self-confidence," he says. "We all like to think that we're smarter and more knowledgeable than others. But it's awfully tough to outsmart the market." - By Erin Peterson | Bankrate.com]]> 190 2009-09-12 14:28:17 2009-09-12 21:28:17 open open 6-financial-experts-worst-goofs publish 0 0 post _edit_lock 1252790898 _edit_last 2 Tax collectors trolling Facebook http://www.ethiopianreview.com/business/192 Sat, 12 Sep 2009 21:29:50 +0000 http://www.ethiopianreview.com/business/?p=192 An agent for a 'friend' There are limits to what state agents can do on the Web. In Nebraska, agents are only allowed to use information that is publicly available online. So, MySpace -- owned by News Corp., publisher of The Wall Street Journal -- tends to work best because its users often post more public information than do those of sites like Facebook, Schroeder said. The default settings for adults on MySpace create a public profile, while the default settings on Facebook create a profile only viewable by an approved list of friends. "Agents are not allowed to 'friend' someone using false information," Schroeder said. The same ethics rules hold in California, according to a spokesman for the state's Franchise Tax Board. Not all state tax departments are jumping on the trend. Massachusetts, long known for its aggressive tax collections, said it has "no systematic program" for trawling social media at the moment. According to Eads of the tax administrators' group, many state tax authorities currently block social sites on workplace computers to prevent employees from spending personal time on them. "They may change their minds," he said. "Using social media is something we will explore," said Jessica Iverson, a spokesman for the Wisconsin Department of Revenue. A spokesman for Oregon's revenue agency said his state is also "considering it." Other states are looking for ways use Internet information to enhance not only collections but also audits and negotiations. A Minnesota tax official said that when firms try to negotiate payments by claiming to be strapped for cash, agents always check their Web sites. At the time one tanning business was crying poverty to the state, agents pointed out that its site boasted of supplying all the tans for participants in a big body-building contest. - By Laura Saunders | WSJ]]> 192 2009-09-12 14:29:50 2009-09-12 21:29:50 open open tax-collectors-trolling-facebook publish 0 0 post _edit_lock 1252791116 _edit_last 2 Are you afraid to open your mail? http://www.ethiopianreview.com/business/194 Sat, 12 Sep 2009 21:32:05 +0000 http://www.ethiopianreview.com/business/?p=194 The cost of refusing to look Blackwell later began skipping payments, at one point leaving her account 90 days overdue. Blackwell's refusal to confront her debt cost her dearly. Her credit was trashed. Late payment fees, credit insurance and continuing purchases swelled her balance until it was over the limit and the credit card issuer shut down the account. Blackwell's financial denial ended after about two years. She was engaged to be married and didn't want her credit troubles to hurt her and her fiancé's chances of buying a home. She worked out a payment plan, got a secured credit card and eventually started blogging about her journey from frivolousness to frugality at Modern Tightwad. When she recently came across some of the unopened bills from that period, she started to cry. Every $40 late and over-limit fee felt like an indictment. "It's almost as if I didn't care enough about myself" to deal with the situation, Blackwell said. "Once I started feeling responsible for someone other than myself, then I did something about it." 6 signs of trouble Few of us want to pore over the details of our finances 24/7. And not opening your retirement statements after a bad quarter may be simple self-preservation. But if you find yourself constantly avoiding money details, you could be setting yourself up for financial ruin. Here are six warning signs that you're headed for trouble: * You don't open bills shortly after they arrive. * You ignore e-mail or text alerts from your bank or credit card companies. * You have no idea how much money you owe. * You're often surprised -- and not pleasantly -- by the balance in your checking account. * You've paid more than one late or bounced-check fee in the past year. * You've skipped a payment because you "forgot" about the bill. Actor and comedian David Beach of Pasadena, Calif., said his financial denial is situational. When the money is flowing in, as it was this summer, he pays attention to his bills and bank balances. "But I'm back to hand-to-mouth living soon," Beach said. "I go through phases of 'scared to look.'" You may feel that tending to your money is pointless because you can't improve your financial situation right now. But you can usually keep it from getting worse. A single lapse of attention can lead to hundreds of dollars in bounced-transaction fees. Late or skipped bill payments can trash your credit scores, which can cause your interest rates to soar, jack up your insurance premiums and make it harder to get an apartment or a job. Skipping a car payment can lead to repossession, while missing three or more mortgage payments can start the expensive process of foreclosure. In other words, fixing your finances will be a lot more expensive and take a lot longer than if you'd shaken off your denial in the first place. What to do when you finally look Blackwell now knows she could have done a lot to help herself if she'd grabbed the reins earlier. After she decided to take action, she scoured the Internet and a stack of personal finance magazines given to her by an uncle. Then she: * Set up automatic payments so her minimum balance was taken from her checking account every month, preventing late fees. * Used online account access so she could track her balance and know when she was getting close to her credit limit (e-mail or text alerts can also help). * Used low-rate balance transfers to move her debt to a less-expensive card. "I had the resources (to improve the situation)," Blackwell said. "I just didn't know it." Even if you truly can't pay your bills, you still have better options than ignoring your money: * People who can't afford their mortgages may have options, including refinancing or loan modifications. The first step is to contact a HUD-approved credit counselor to assess your situation for free. You can find one here. * Credit card lenders and other creditors are typically more willing to work out repayment plans these days (read "Get a credit card reprieve" for details), as unemployment rises and collections slow. But you have to call and ask. * If you can't get anywhere with your creditors on your own, you can consider credit counseling, debt settlement or even bankruptcy. Bankruptcy attorneys and trustees will tell you many people wait too long to file, throwing good money after bad as they struggle with debts they simply cannot pay. Having a third party scrutinize your situation and tell you about your options could help you cut short your agony and get a fresh start. Then again, bankruptcy isn't always the best solution. If your financial crisis is short-lived, you may simply need to know the best way to ride out the storm. If that's the case, read "How to not pay your bills" for suggestions on how to prioritize your debts and bills to minimize the damage. It can also help to realize others have been in the same boat, and navigated a way to shore. You can find hope and inspiration on the Your Money or Women in Red message boards; also read MP Dunleavey's "The real key to being debt-free." What's essential is that you bust through your fear, shake off your inertia and take action. Open those bills, check those bank balances and formulate a plan. The longer you delay, the bigger the mess you'll have to clean up. Do your future self a favor, and start now. - By Liz Pulliam Weston | MSN]]> 194 2009-09-12 14:32:05 2009-09-12 21:32:05 open open are-you-afraid-to-open-your-mail publish 0 0 post _edit_lock 1252791126 _edit_last 2 Is student debt really a problem? http://www.ethiopianreview.com/business/196 Sat, 12 Sep 2009 21:33:58 +0000 http://www.ethiopianreview.com/business/?p=196 Some surprises But Steele was surprised "by the extremes" she found in recently released federal borrowing statistics. About 5% of students who got associate's degrees from public community colleges in 2008 left school owing more than $30,000. The average tuition at a public community college last year was just $2,402. Add in $1,000 or so a year for books and supplies, and the total education cost for two years shouldn't exceed $7,000. Steele was also puzzled by the jump in the percentage of public community college finishers who borrowed -- from 30% in 2004 to 38% in 2008. David Baime, the vice president of government relations for the American Association of Community Colleges, notes that government grants and scholarships didn't keep up with inflation during most of the decade. Community colleges raised their tuition on average by almost $500 between 2003 and 2007. But the federal Pell grant rose by only $260. "Real family incomes declined over that period. The costs of textbooks were spiking," and loans were very easy to get during the credit bubble, Baime says. Lauren Asher, the president of the Institute for College Access and Success, points out that living costs such as health care and energy also rose dramatically during that period. In addition, the shortage of grant money has meant that the 80% of needy community college students are left with a gap of $5,277 between what the government estimates they can afford and the bills they have to pay, she says. "People think of community college as affordable," but students who attend community college full time (and are thus more likely to graduate) "are having a harder time covering their living costs without borrowing," Asher says. Debt not necessarily unwise Asher, Steele and other analysts agree, however, that a reasonable amount of low-interest education debt shouldn't alarm students or parents. "It's not that all borrowing is bad," Asher says. "If you are close to finishing and you need to borrow so that you can get a degree, you may be making a very wise decision," she says, adding: "If you drop out of school, you will be left worse off." The recessionary spike in unemployment, which is driving thousands of newly needy students to college, will probably lead to a rise in the number of students who borrow. And recent increases in tuition and the maximum allowable federal student loans are likely to increase the amount students will borrow, analysts say. But analysts also note that the credit crunch wiped out financial companies that used to advertise easy $40,000 private education loans on television. So the number of students taking out big, expensive private loans could plunge. - By Kim Clark | U.S. News]]> 196 2009-09-12 14:33:58 2009-09-12 21:33:58 open open is-student-debt-really-a-problem publish 0 0 post _edit_lock 1252791365 _edit_last 2 U-turn is path to recovery profits http://www.ethiopianreview.com/business/198 Sat, 12 Sep 2009 21:36:14 +0000 http://www.ethiopianreview.com/business/?p=198 The good news about bad times As a result, equity prices are much more vulnerable to the potential for a shift in government policy than they are to threats of economic weakness. BCA Research analysts point out that the correction in June was primarily caused by premature discussion of the Federal Reserve's exit strategy -- not by any new evidence of softer growth. Prices resumed their upward march only once Federal Reserve honcho Ben Bernanke convinced investors that the U.S. central bank would keep its stimulative policies going for as long as necessary. Likewise, the analysts point out, the shakeout in Chinese stocks in the past three weeks has also come not as the result of weak earnings or economic softness but because investors had become concerned that the Beijing government would start to tighten monetary policy. In fact, fresh losses on the Shanghai stock market have come amid new evidence that China's economy is re-accelerating. This might seem backward, but it's happened many times in the past. Some of the strongest spans in the market have come during the weakest periods of economic growth. According to the BCA research, here's how it breaks down: Quarters in which growth in gross domestic product has clocked in at a terrible negative 2% to negative 3% have led to the strongest returns in the Standard & Poor's 500 Index ($INX): around 28% on average in the ensuing 12 months. Quarters of negative-2% to negative-1% GDP growth have led to one-year returns of around 19%. Quarters of negative-1% to 0% growth have led to growth of around 8%. Quarters of 1% to 2% growth have led to 2.5% annual returns, and quarters of 2% to 3% growth have led to slightly negative 12-month returns. In short, the faster the economy recovers, the worse the 12-month outlook for stocks becomes. Strange but true. Indeed, the most robust periods of growth have led to some of the lousiest returns in all major global economies. Example: From the start of 1999 to the first quarter of 2001, U.S. GDP growth averaged greater than 3%. The broad market return for that span: negative 5.6%. Going back a couple of decades, the same occurred in the United States in 1973 and 1965-67, as well as France in 1990, Germany in 1979 and the United Kingdom in 1988-89. Monetary policy lies at the heart of this backward relationship between economic growth and stock performance. When growth is strong, inflation tends to rise, which in turn leads central bankers to lift rates, which in turn rallies the dollar, which in turn is a negative for corporate earnings because it makes U.S. goods less affordable and also tends to crush bond prices. So when you hear pundits talking about a "muddle-through" economy in which the "new normal" is sluggish growth, your response should be a secret grin rather than despair, so long as you have a job and investments. BCA researchers aptly point out that the early 1990s' jobless recovery was widely bemoaned as listless, and yet it was one of the best spans for the market in the last half-century. In contrast, the V-shaped recovery that emerged in 1973, when GDP growth sped to 8% annualized, was followed by a hellacious 1974 bear market as the Fed jacked up rates in an effort to crush inflation. Fear increased consumer spending At present, despite the market's occasional spasms of fear over valuations, I think you can count on the Fed staying on the sidelines with no changes in its policy for at least the next 12 months. This was most likely part of an unspoken quid pro quo between President Barack Obama and Bernanke in the renomination process. Both politicians and bankers will be happy to live with subpar growth and a weak recovery because they prolong the period in which asset prices can improve -- a phenomenon that will provide sustenance to weakened banks and improve the flow of taxes into government coffers. Oddly enough, if this analysis is correct, the faster the economy grows, the more worried investors should become. And that is not as unlikely as it sounds. BCA researchers believe that the contraction in consumer spending has actually exceeded the levels implied by declines in household income. That means there is likely a lot of pent-up demand among consumers that could burst out into the open. This is probably why we're hearing of surprising revenue gains lately from companies as diverse as Intel (INTC, news, msgs), Best Buy (BBY, news, msgs) and Coach (COH, news, msgs). When consumers realize that they have gone overboard on saving once the recession eases and jobs become a little easier to get, we could very well see a surge in spending that could freak out policymakers and lead to a resurgence of inflation fears. Putting it all together, then, the real fear for investors is not a weak recovery characterized by consumer deleveraging and mass decision not to spend money on holiday gifts. It's the opposite. A V-shaped recovery in which GDP growth tops 4%, which has been forecast by ISI Group economists, could be the worst Christmas present that investors ever received. That's not likely to occur, but you should put it on your mental checklist of things to worry about. Cristina Romer, the economics chief in the White House, said in the middle of last month that she does not expect the Fed to return to "normal" interest-rate policy until employment has returned to normal, something that is unlikely to occur until late next year at the earliest. The proper path for investors is to focus on some of the great value stocks that have been left behind in the race for high-volatility growth companies in the last six months. They include stalwarts like Johnson & Johnson (JNJ, news, msgs), Procter & Gamble (PG, news, msgs) and General Dynamics (GD, news, msgs). Craig Drill, a veteran hedge-fund manager known for his skeptical, contrarian approach and great record as a value manager, surprised me this week by coming around to this point of view. Observing that low industrial capacity utilization, high unemployment and balance-sheet deleveraging are normally thought of as negatives, he told me that investors should be happy that they are keeping interest rates near zero for an extended period and the Fed on task in guaranteeing major bank risk. Without growth creating "inflationary bursts," he said, there's more money available for the purchase of risky assets. "That's the sweet spot for speculation," he concludes. It's U and me, baby, against the V. - By Jon Markman | MSN Money]]> 198 2009-09-12 14:36:14 2009-09-12 21:36:14 open open u-turn-is-path-to-recovery-profits publish 0 0 post _edit_lock 1252791376 _edit_last 2 Opel deal leaves many unanswered questions http://www.ethiopianreview.com/business/200 Sat, 12 Sep 2009 21:37:52 +0000 http://www.ethiopianreview.com/business/?p=200 Best deal for GM and Opel? Despite German optimism, the deal also begs the question of how good of a deal is this for General Motors from an objective point of view. Under the terms of the deal, Magna will own 55 percent of Opel, while GM will retain 35 percent. Opel workers will make up the final ten percent. This means that GM has effectively given up the majority share of its European market. "I'm sceptical that this was really the best decision from the perspective of General Motors," said Bratzel. "The European market is very important when a company wants to remain a global player in the auto industry. When this market is given up, there is the risk that a company could become less competitive in the long run." Bratzel adds that despite pressure from the German government to accept the Magna deal, GM may have simply gone with the deal that was the least problematic, if not the best deal imaginable. "There is quite a lot of money at stake here," Bratzel said. "For GM to hold onto Opel, it probably would have cost several billion euros over the next three to five years. They apparently couldn't come up with that money, so they looked for an alternative. Whether or not a deal with Magna was the right decision remains to be seen." It is clear that there is still a lot of work to be done to truly turn Opel in a new direction, but the deal with Magna offers, at the very least, a new starting point. - By Joerg Brunsmann / Matt Zuvela | DW]]> 200 2009-09-12 14:37:52 2009-09-12 21:37:52 open open opel-deal-leaves-many-unanswered-questions publish 0 0 post _edit_lock 1252791536 _edit_last 2 Opel deal sparks concerns about job losses across Europe http://www.ethiopianreview.com/business/202 Sat, 12 Sep 2009 21:38:55 +0000 http://www.ethiopianreview.com/business/?p=202 Deal removes "uncertainty" The deal finally removes some of the uncertainty that has plagued Opel workers across Europe, Tony Murphy, company policy director at the European Metal Workers' Association, told Deutsche Welle. GM's announcement on Thursday "has given workers hope for a future," he added. "But Magna has only pledged to keep all plants open in Germany. We have always pushed for a buyer that safeguards jobs across Europe." Magna has not explicitly ruled out closing down facilities in other parts of Europe. And the company's announcements of planned job cuts at specific locations are already seen by some as a first sign of worse things to come. In Britain Opel operates two plants under the brand name Vauxhall. The 2,200 workers at the Ellesmere Port facility near Liverpool have mixed feelings about Magna now being in the driver's seat. Magna to cut British jobs "We are glad that there is a new owner and we did not run into bankruptcy," said John Fetherston, an Ellesmere Port organizer for Britain's largest trade union, Unite. "But Magna plans to cut 830 jobs and possibly close our pension scheme," he added. Other options would not have necessarily been better. The fact that other bidders, like Brussels-based investment firm RHJ, had not mentioned similar plans for British plants does not mean they did not have any such plans, he admits. "But when we looked at GM's own original plan – that was a total disaster [for Opel jobs] across Europe." Even as Britain's business secretary Peter Mandelson is surely aware of British workers' concerns over Magna, he appears somewhat more upbeat about the future for Vauxhall's workforce. He was "satisfied" about the new owners' "commitment to Vauxhall's plants," he said on Thursday. European locations at risk Things are arguably worse elsewhere in Europe, where the survival of individual plants is at risk. GM vice-president John Smith said in Berlin on Thursday that Opel's new owners were "contemplating" winding down a plant in Antwerp, Belgium, and shifting some production from Spain to Germany. Unions in Belgium expressed hope that a decision to close Antwerp had not yet been taken, and the head of the Flemish government called on the European Commission to probe conditions attached to Germany's state aid. GM deal part of German electioneering? The political circumstances facilitating yesterday's decision have now become a new focus of attention. German opposition parties have blasted what they see as blatant electioneering on the part of the governing coalition of Conservatives and Social Democrats. It's a view that resonates with those across Europe at the receiving end of the Magna deal. "Reading between the lines, it is clear that there was going to be a push for a quick decision before the election," said the metalworkers' Tony Murphy. John Fetherston from Unite takes a similar view: "The question is, would the [German government] also have done it five months into a new term?" "The German government is rightly supporting German jobs and the deal was ably aided by the German government," he says, adding that British politics and particularly Business Secretary Mandelson will certainly also fight for British workers' interests, even though "we have nothing tangible yet." "Key issues" remain Despite German politicians hailing GM's decision for Magna as a landmark, the deal presently offers little that is tangible to anyone. Two weeks before Germany's general election it is as yet little more than a declaration of intent. No final contracts have been negotiated or signed, the German government is keeping under wraps the details of its negotiations with GM and there are more than just details that remain to be worked out. GM has pointed out that "several key issues" still need to be dealt with. This is a major reason why Europe's car workers are still hesitant. "We are waiting for the small print of the final agreement," said Tony Murphy. For the new German government it could yet turn out to be a major headache. - By Ranty Islam | DW ]]> 202 2009-09-12 14:38:55 2009-09-12 21:38:55 open open opel-deal-sparks-concerns-about-job-losses-across-europe publish 0 0 post _edit_lock 1252791536 _edit_last 2 German carmaker Volkswagen to invest heavily in China http://www.ethiopianreview.com/business/204 Sat, 12 Sep 2009 21:39:23 +0000 http://www.ethiopianreview.com/business/?p=204 China is VW's biggest growth market Volkswagen already sells a wider range of products in China than any other carmaker, and has introduced three new models there this year. It sold more cars in China than it did in Germany during the month of July. Sales there grew 12.5 percent in 2008, as they were falling 3.9 percent in Western Europe, 5.2 percent in North America, and 8.7 percent in Japan. "We expect to achieve double-digit growth in China this year and to secure our market leadership going forward," Volkswagen China chief Winfried Vahland said. He added that he expects the company to meet its goal of doubling annual unit sales to two million before its 2018 target date. The Wolfsburg-based company's share price on the Frankfurt stock exchange rose 4.35 percent in response to the investment news, closing at 127.83 euros ($186.55). But Volkswagen is far from the only game in town. According to US analyst firm JD Power, more than 90 Chinese and foreign car brands operate in China, including Toyota, Ford and Peugeot Citroen. Only 20 people out of every 1,000 in China own a car, according to market researchers TNS, compared to 700 per 1,000 in the United States. - By svs/afp/DPA/AP]]> 204 2009-09-12 14:39:23 2009-09-12 21:39:23 open open german-carmaker-volkswagen-to-invest-heavily-in-china publish 0 0 post _edit_lock 1252791563 _edit_last 2 Opel sale sparks widespread criticism in Europe http://www.ethiopianreview.com/business/206 Sat, 12 Sep 2009 21:40:09 +0000 http://www.ethiopianreview.com/business/?p=206 Government negotiator slams Opel deal Making matters more complicated for Chancellor Angela Merkel's government, the government’s representative at the Opel negotiations, Dirk Pfeil, also described the Opel sale to Magna as a "serious mistake." In an interview with radio station Deutschlandfunk on Saturday, Pfeil said had he would not have taken part in the discussions had he “known that it was going to be a purely political decision, and that business management considerations would be left in the shadows.” “It is unique in my professional life that the party which has been acting as guarantor also decides on the buyer. That is a bit odd and it does not fit into the system," Pfeil said. General Motors announced this week it will sell 55 percent of its European subsidiary Opel to Magna and its Russian partners bank Sberbank and carmaker Gaz. GM will only retain a minority stake of 35 percent, ten percent are to be held by Opel employees. EU warns of action against protectionism The Opel sale to Magna has also attracted the interest of the European Commission. On Saturday, EU Competition Commissioner Neelie Kroes warned she will take action if there is any protectionism in the sale. The Belgian government says it wants the EU Commission to investigate the Opel deal amid concern that Germany allegedly sought to protect its own plants at the cost of others. Kroes was quoted as saying Saturday that "if something happens against the rules. I will take action." Kroes added that state support should not be tied to factory locations. Merkel denies deal was politically motivated Chancellor Merkel on Saturday however dismissed fears that the EU Commission could put the brakes on the deals or block Berlin's package of government aid for Opel. "The Opel case is of a large, also European importance, so discussions still need to be held with the Commission," Merkel told the Sueddeutsche Zeitung newspaper. She pointed out that the general framework of government aid from which the billions for Opel are to come have already been approved by the Commission. There's also criticism from within Germany that Berlin's pressure on GM to favor Magna was mostly politically motivated. With general elections coming up on September 27, the two parties in the current grand coalition needed a quick solution to the Opel problem and a solution with as little job cuts within Germany as possible. Analysts however warn that the true cost of the deal and more details about layoffs would come in only after the general election. Chancellor Merkel on Saturday dismissed that the Opel rescue was politically motivated. "We are not rescuing corporations, but are maintaining a chance for them in the financial crisis," Merkel told the Sueddeutsche Zeitung newspaper. "But of course the company needs a solid concept for the future. Any company then has to prove itself on the market, there's no way that the government can take off that pressure." - By ai/dpa/AP/Reuters]]> 206 2009-09-12 14:40:09 2009-09-12 21:40:09 open open opel-sale-sparks-widespread-criticism-in-europe publish 0 0 post _edit_lock 1252791610 _edit_last 2 Government Programs for First Time Homebuyers http://www.ethiopianreview.com/business/208 Sun, 13 Sep 2009 18:50:03 +0000 http://www.ethiopianreview.com/business/?p=208 AC]]> 208 2009-09-13 11:50:03 2009-09-13 18:50:03 open open government-programs-for-first-time-homebuyers publish 0 0 post _edit_lock 1252867805 _edit_last 2 5 Key Differences Between Change Management & Project Management http://www.ethiopianreview.com/business/210 Sun, 13 Sep 2009 18:50:37 +0000 http://www.ethiopianreview.com/business/?p=210 AC]]> 210 2009-09-13 11:50:37 2009-09-13 18:50:37 open open 5-key-differences-between-change-management-project-management publish 0 0 post _edit_lock 1252867996 _edit_last 2 Change Management - The Business of Staying in Business http://www.ethiopianreview.com/business/212 Sun, 13 Sep 2009 18:51:24 +0000 http://www.ethiopianreview.com/business/?p=212 AC]]> 212 2009-09-13 11:51:24 2009-09-13 18:51:24 open open change-management-the-business-of-staying-in-business publish 0 0 post _edit_lock 1252869844 _edit_last 2 Inflation and Real Wages http://www.ethiopianreview.com/business/214 Sun, 13 Sep 2009 18:52:38 +0000 http://www.ethiopianreview.com/business/?p=214 AC ]]> 214 2009-09-13 11:52:38 2009-09-13 18:52:38 open open inflation-and-real-wages publish 0 0 post _edit_lock 1252868022 _edit_last 2 Compound Interest http://www.ethiopianreview.com/business/218 Sun, 13 Sep 2009 18:54:44 +0000 http://www.ethiopianreview.com/business/?p=218 AC]]> 218 2009-09-13 11:54:44 2009-09-13 18:54:44 open open compound-interest publish 0 0 post _edit_lock 1252868086 _edit_last 2 Paris Hilton's Doghouse Costs More Than Your Home! http://www.ethiopianreview.com/business/220 Sun, 13 Sep 2009 18:57:22 +0000 http://www.ethiopianreview.com/business/?p=220 here for pictures. - by Pandi Panda | AC ]]> 220 2009-09-13 11:57:22 2009-09-13 18:57:22 open open paris-hiltons-doghouse-costs-more-than-your-home publish 0 0 post _edit_lock 1252868244 _edit_last 2 How to Take Great Photos of Your Business Cards http://www.ethiopianreview.com/business/222 Sun, 13 Sep 2009 18:58:49 +0000 http://www.ethiopianreview.com/business/?p=222 AC]]> 222 2009-09-13 11:58:49 2009-09-13 18:58:49 open open how-to-take-great-photos-of-your-business-cards publish 0 0 post _edit_lock 1252868329 _edit_last 2 How to Start Popular Recession Businesses http://www.ethiopianreview.com/business/224 Sun, 13 Sep 2009 18:59:47 +0000 http://www.ethiopianreview.com/business/?p=224 recession businesses: 1) Temporary Employment Agencies--The major benefit of starting a temp agency right now is that there are so many people unemployed, and so it will be easy to get workers; the main disadvantage of starting a temp agency right now is that there are so few employers hiring that will be difficult getting contracts. 2) Day Care Center--With both moms and dads going back to work full-time, starting a day care center can be very lucrative right now. The primary disadvantage of starting a day care center is state licensing guideline which can be difficult sometimes. 3) Cleaning Service--It's a good time to start a cleaning service (whether residential or commercial) because of the low-overhead and high profit potential. The main disadvantage of starting a cleaning business is the hours: 5 p.m. until early morning. 4) Pet Sitting/Dog Walking--Pet Sitting/Dog Walking is a great part-time business venture that can net you up to $30,000 a year. The primary disadvantage: you're dealing with pet poop all day. 5) Debt Collections--Debt Collections is a thriving business right now because so many people are unemployed. It takes thick skin to collect from impoverished people so this is not a business for the sensitive. 6) Foreclosure Cleaning--Foreclosure Cleaning is considered the #1 recession-based business. The primary disadvantage is that you can lose alot of money if you give a bad bid. 7) Tutoring--In Home Tutoring is a great business venture with low overhead and high profit potential. It can be burdenson when you hear from angry parents whose childen still failed their class. I hope this has been helpful. For how to books on some of the preceding businesses, check out the following links: Foreclosure Cleaning http://www.lulu.com/content/paperback-book/how-to-start-a-foreclosure-clean-up-business/7034497 Residential/Commercial Cleaning: http://www.lulu.com/content/paperback-book/how-to-start-a-house-cleaning-business/7296497 - by Robb Weigel | AC]]> 224 2009-09-13 11:59:47 2009-09-13 18:59:47 open open how-to-start-popular-recession-businesses publish 0 0 post _edit_lock 1252868388 _edit_last 2 Don't Default on Student Loans: What to Do If You Can't Pay http://www.ethiopianreview.com/business/226 Sun, 13 Sep 2009 19:00:43 +0000 http://www.ethiopianreview.com/business/?p=226 AC ]]> 226 2009-09-13 12:00:43 2009-09-13 19:00:43 open open dont-default-on-student-loans-what-to-do-if-you-cant-pay publish 0 0 post _edit_lock 1252868444 _edit_last 2 How to Read the Latest Best Selling Books on a Budget http://www.ethiopianreview.com/business/228 Sun, 13 Sep 2009 19:02:31 +0000 http://www.ethiopianreview.com/business/?p=228 AC]]> 228 2009-09-13 12:02:31 2009-09-13 19:02:31 open open how-to-read-the-latest-best-selling-books-on-a-budget publish 0 0 post _edit_lock 1252868621 _edit_last 2 Tips to Get Funding for New Restaurants and Startups. http://www.ethiopianreview.com/business/231 Sun, 13 Sep 2009 19:03:33 +0000 http://www.ethiopianreview.com/business/?p=231 AC]]> 231 2009-09-13 12:03:33 2009-09-13 19:03:33 open open tips-to-get-funding-for-new-restaurants-and-startups publish 0 0 post _edit_lock 1252868614 _edit_last 2 Outrageous CEO Pay: Well Deserved? http://www.ethiopianreview.com/business/233 Sun, 13 Sep 2009 19:04:17 +0000 http://www.ethiopianreview.com/business/?p=233 AC]]> 233 2009-09-13 12:04:17 2009-09-13 19:04:17 open open outrageous-ceo-pay-well-deserved publish 0 0 post _edit_lock 1252868658 _edit_last 2 How Much is a Trillion Dollars? http://www.ethiopianreview.com/business/235 Sun, 13 Sep 2009 19:05:26 +0000 http://www.ethiopianreview.com/business/?p=235 ($1,000,000,000,000) A trillion dollars is just a thousand billion dollars which is also the same thing as one million million dollars. $1,000,000,000,000 is the same thing as 1,000,000 x 1,000,000 just as 10 times 10 = 100 and 100 x 100 = 10,000 by adding the two zeros as they multiply. That still does not make it a lot of money if there are 300 million people in a country and one trillion dollars is to be divided by them that comes to just $3333.33 each. If there are just 80 million tax payers in the country that comes to $12,500 per tax payer if split evenly which is a bit more than $1000 a month if that amount is due in one year. So When government says it is in need of ten trillion dollars to spend in one year that means having $120,500 per tax payer if there are just 80 million of them and that starts to seem like a lot of money and it actually is too much money for just 80 million tax payers to be paying. That is ten trillion dollars and not just a mare single trillion bucks. A million dollars buys just 2 $500,000 upper middle class homes in most US Cities today and a billion dollars then only buys just 2000 such half million dollars homes which does not seem to be quite a lot of money until you realize that few banks in the US have over one trillion dollars in total assets on deposit. A trillion dollars buy 1000 times as many half million dollar homes as a billion dollars does which nets a total of 2 million half million dollar houses. The USA is a country with more than 80 million separate homes. 2,000,000 separate half million dollar homes. If you prefer to buy cars averaging 30,000 for a trillion dollar program that comes to over 33 million of these cars. On the other hand it might buy NASA both a moon base and one or two separate manned one way trips to Mars. What happens when the government is running an 8 , 9 or 10 trillion dollar budget deficit per year is leaving it owing more money than it may ever be able to pay back. Even if the government makes us all into tax slaves paying 75 percent or more of income to cover trillions and trillions of dollars in deficit spending, the government risks cannibalizing the very taxpayers it depends on for future taxation. Make too many taxpayers broke and there is no one left to pay. Foreigners are fools at some point to loan the US government money at any interest rate hoping to be repaid or they might expect the US government to go out and confiscated indexable private property to settle future claims. Government really just intends to print future money that never exists to pay all of its debts to debt holders domestic and foreign. Tax payers have more say in the mater than realized because they can stop reinvesting their money in American production and find better safer places for investment overseas and across national boundaries. This can exacerbate government debt loads causing them to monetize inflation or rather just to totally debase the dollar. The American people will start to notice when they see world gasoline prices go from $12 a gallon to over $20 while they may also notice their wages don't quite keep up at the same rate as the inflation. Workers who ask for inflation based raises risk losing the very jobs they are trying to protect because they don't receive their job pay roll checks in anything but US dollars. A trillion dollars can thus cost a lot more than just $3333.33 for each of 80 million tax payers. The need to sell government bonds to rationalize the debt is pure nonsense but not something that cannot be done on a long term and temporary basis. Reasonable debt can be a cheap way to finance reasonable government spending but too much debt to finance junk government is not going to grow productive forces in the economy to eventually service and pay off the debt. Before Long government can have claims on all the property in the country till there is no incentive in owning it. One has to wonder why it is that people like George Soros seem to want the US to have excessive tax and spend democrats in office while he complains that the dollar is likely to expire as the international currency of choice. It leaves a strange multi trillion dollar taste in one's mouth that the same people can be the ones supporting what seem to be destructive government policies. Is it that people like Soros have some ulterior motive to destroy the personal freedom Americans enjoy because he feels guilty about his own success or because he resents the large American upper middle class and wants to reduce them to the level of serfdom for his own political patronage? If there are 6 billion people on earth a trillion dollars will buy each of them about 67 $2.50 fast food hamburgers. The cows don't want to know how many cows that is but there might be fast food restaurants that might not mind the government subsidy. The funny thing about a trillion dollars is how few American Corporations could spend it wisely. Most corporations in business to make money could not invest that much money and make money over the long run spending it. Some investment firms have that much or more under conservatorship but these firms do not usually make all the decisions to spend it. When companies were valued at as much as half a trillion dollars in market value including , AOL, Microsoft and General Electric , at one point in time those market prices proved to be quite unsustainable. It means that having vast sums of money in the trillions of dollars to spend does not make spending it an exercises in wisdom. Money like that can cause prices to rise almost the way lunar tides work. With Government it seems that for every trillion dollars they don't spend the more sensible their economic policy is. As the multi-trillion dollar deficits of a few years ago become ten , twenty and soon hundreds of trillions of dollars in spending as the years go by and the figures compound, Prices in the tax liable economy will have to rise to counteract productivity losses. None of the congressmen who voted for the inevitable unintended consequences plan to be taking any credit for them, but if there were to give me a trillion dollars today I will be willing to pay them hamburgers tomorrow or lets say anything else they want as John Maynard Keynes , the famous economist originally said, "in the long run we are all dead." - by Lex Loeb | AC ]]> 235 2009-09-13 12:05:26 2009-09-13 19:05:26 open open how-much-is-a-trillion-dollars publish 0 0 post _edit_lock 1252868852 _edit_last 2 Do You Want to Purchase a Car but Afraid of Your Bad Credit Rating? http://www.ethiopianreview.com/business/237 Sun, 13 Sep 2009 19:06:36 +0000 http://www.ethiopianreview.com/business/?p=237 How to Purchase a Car with Bad Credit Many of us have had a bad credit, either one time or another. It might have happened because some unexpected expenses showed up, or you had a friend who was in need of some money, or you had a house rent to pay. It just happens sometimes, and it could happen to anyone of us. This doesn't mean we should be denied of credit. So here are some things that can be done in this situation. However, this might not be a totally free option, so be prepared. Some dealers out there are willing to carry your credit all by themselves, which means that they will finance you themselves. If you are amongst the one's with bad credit just like most of the people in America, this might be a great option for you since you not only get help, but also build your credit ratings, both at the same time. It's a lot like purchasing a good credit rating. Since there are so many Americans that are suffering from a credit problem, its assured that a good number of them are in the need of a car. Well, at least they are wanting a car, if not needing. That's the reason a lot of "Buy Here - Pay Here" dealerships are coming up around the countryside. These dealerships are involved in money businesses. They aren't involved into any other business besides the money business. Firstly, in house financing paves the path for a sale that would never have been made anyway. Secondly, these people will charge you a higher rate of interest that they pay the banks for the same car. Its a great situation for the the car dealer ! With the in-house financing you might be able to get your new car and vanish with it, that very moment. They seldom have some long drawn out process like outside financiers that like to put a damper on things. So in other words, you probably can buy the new car you have been dreaming of, but you'll have to pay for it because either you were unlucky, or just absolutely careless. But doing this will make one thing sure that you will be able to get your credit back on track and purchase the four wheeler you are crazy about, that's if you don not mess things up. Or else the repo-man will be checking out your address and driving away with your car. I hope everything goes well. Best of luck on purchasing your new car. - by aaron smith | AC ]]> 237 2009-09-13 12:06:36 2009-09-13 19:06:36 open open do-you-want-to-purchase-a-car-but-afraid-of-your-bad-credit-rating publish 0 0 post _edit_lock 1252868862 _edit_last 2 Creating Positive Work Environment in Office? Learn How to Do It http://www.ethiopianreview.com/business/239 Sun, 13 Sep 2009 19:07:39 +0000 http://www.ethiopianreview.com/business/?p=239 AC]]> 239 2009-09-13 12:07:39 2009-09-13 19:07:39 open open creating-positive-work-environment-in-office-learn-how-to-do-it publish 0 0 post _edit_lock 1252868860 _edit_last 2 How to Compose a Professional Business Memo http://www.ethiopianreview.com/business/241 Sun, 13 Sep 2009 19:17:19 +0000 http://www.ethiopianreview.com/business/?p=241 AC]]> 241 2009-09-13 12:17:19 2009-09-13 19:17:19 open open how-to-compose-a-professional-business-memo publish 0 0 post _edit_lock 1252869580 _edit_last 2 Becoming Successful at Zazzle http://www.ethiopianreview.com/business/246 Sun, 13 Sep 2009 19:20:29 +0000 http://www.ethiopianreview.com/business/?p=246 AC]]> 246 2009-09-13 12:20:29 2009-09-13 19:20:29 open open becoming-successful-at-zazzle publish 0 0 post _edit_lock 1252869693 _edit_last 2 Job Security in the Midst of Unemployment http://www.ethiopianreview.com/business/248 Sun, 13 Sep 2009 19:21:17 +0000 http://www.ethiopianreview.com/business/?p=248 AC]]> 248 2009-09-13 12:21:17 2009-09-13 19:21:17 open open job-security-in-the-midst-of-unemployment publish 0 0 post _edit_lock 1252869678 _edit_last 2 The Art of Budgeting for Single Moms http://www.ethiopianreview.com/business/250 Sun, 13 Sep 2009 19:21:56 +0000 http://www.ethiopianreview.com/business/?p=250 AC]]> 250 2009-09-13 12:21:56 2009-09-13 19:21:56 open open the-art-of-budgeting-for-single-moms publish 0 0 post _edit_lock 1252869716 _edit_last 2 5 Traffic Exchange Features to Consider http://www.ethiopianreview.com/business/252 Sun, 13 Sep 2009 19:22:55 +0000 http://www.ethiopianreview.com/business/?p=252 AC]]> 252 2009-09-13 12:22:55 2009-09-13 19:22:55 open open 5-traffic-exchange-features-to-consider publish 0 0 post _edit_lock 1252869899 _edit_last 2 Let Your Referrals Bring You Credits http://www.ethiopianreview.com/business/254 Sun, 13 Sep 2009 19:24:20 +0000 http://www.ethiopianreview.com/business/?p=254 Generate Free Traffic - by Ruth Abigail Sebastian | AC]]> 254 2009-09-13 12:24:20 2009-09-13 19:24:20 open open let-your-referrals-bring-you-credits publish 0 0 post _edit_lock 1252869931 _edit_last 2 Starting Your Own Home Cake Decorating Business http://www.ethiopianreview.com/business/256 Sun, 13 Sep 2009 19:25:31 +0000 http://www.ethiopianreview.com/business/?p=256 AC]]> 256 2009-09-13 12:25:31 2009-09-13 19:25:31 open open starting-your-own-home-cake-decorating-business publish 0 0 post _edit_lock 1252869932 _edit_last 2 2367 http://cakedecoratingsecretstoday.com/latest-cake-decorating-supply-news-local-woman-to-appear-on-tlcs-ultimate-cake-off/ 67.18.54.147 2009-11-05 01:31:13 2009-11-05 08:31:13 0 pingback 0 0 How Should a Woman Dress for an Interview? http://www.ethiopianreview.com/business/258 Sun, 13 Sep 2009 19:26:25 +0000 http://www.ethiopianreview.com/business/?p=258 AC]]> 258 2009-09-13 12:26:25 2009-09-13 19:26:25 open open how-should-a-woman-dress-for-an-interview publish 0 0 post _edit_lock 1252870048 _edit_last 2 How to Take Advantage of This Economy: Investing During a Recession http://www.ethiopianreview.com/business/260 Sun, 13 Sep 2009 19:27:12 +0000 http://www.ethiopianreview.com/business/?p=260 AC]]> 260 2009-09-13 12:27:12 2009-09-13 19:27:12 open open how-to-take-advantage-of-this-economy-investing-during-a-recession publish 0 0 post _edit_lock 1252870033 _edit_last 2 Having Troubles with Your Business? Maybe You Need a Good Business Analyst http://www.ethiopianreview.com/business/262 Sun, 13 Sep 2009 19:27:58 +0000 http://www.ethiopianreview.com/business/?p=262 AC ]]> 262 2009-09-13 12:27:58 2009-09-13 19:27:58 open open having-troubles-with-your-business-maybe-you-need-a-good-business-analyst publish 0 0 post _edit_lock 1252870078 _edit_last 2 Avoiding Office Politics at a New Job http://www.ethiopianreview.com/business/264 Sun, 13 Sep 2009 19:28:46 +0000 http://www.ethiopianreview.com/business/?p=264 AC]]> 264 2009-09-13 12:28:46 2009-09-13 19:28:46 open open avoiding-office-politics-at-a-new-job publish 0 0 post _edit_lock 1252870190 _edit_last 2 Fitness Boot Camps: How to Make Money as a Fitness Trainer http://www.ethiopianreview.com/business/266 Sun, 13 Sep 2009 19:29:24 +0000 http://www.ethiopianreview.com/business/?p=266 AC]]> 266 2009-09-13 12:29:24 2009-09-13 19:29:24 open open fitness-boot-camps-how-to-make-money-as-a-fitness-trainer publish 0 0 post _edit_lock 1252870165 _edit_last 2 Setting Up a New Office on a Budget http://www.ethiopianreview.com/business/268 Sun, 13 Sep 2009 19:30:02 +0000 http://www.ethiopianreview.com/business/?p=268 AC]]> 268 2009-09-13 12:30:02 2009-09-13 19:30:02 open open setting-up-a-new-office-on-a-budget publish 0 0 post _edit_lock 1252870203 _edit_last 2 Venture Capital: Is it on a Diet Pill? http://www.ethiopianreview.com/business/270 Sun, 13 Sep 2009 19:30:39 +0000 http://www.ethiopianreview.com/business/?p=270 AC]]> 270 2009-09-13 12:30:39 2009-09-13 19:30:39 open open venture-capital-is-it-on-a-diet-pill publish 0 0 post _edit_lock 1252870423 _edit_last 2 Simple Knowledge of Advertising Program http://www.ethiopianreview.com/business/272 Sun, 13 Sep 2009 19:31:39 +0000 http://www.ethiopianreview.com/business/?p=272 AC ]]> 272 2009-09-13 12:31:39 2009-09-13 19:31:39 open open simple-knowledge-of-advertising-program publish 0 0 post _edit_lock 1252870423 _edit_last 2 Maternity Leave: The Global Comparison of a Work/Life Benefit http://www.ethiopianreview.com/business/274 Sun, 13 Sep 2009 19:33:54 +0000 http://www.ethiopianreview.com/business/?p=274 AC]]> 274 2009-09-13 12:33:54 2009-09-13 19:33:54 open open maternity-leave-the-global-comparison-of-a-worklife-benefit publish 0 0 post _edit_lock 1252870436 _edit_last 2 2366 124.120.182.33 2009-11-02 22:34:17 2009-11-03 05:34:17 0 0 0 937 125.164.12.63 2009-10-06 08:18:11 2009-10-06 15:18:11 0 0 0 Free Resources and Tools for Starting a Small Business http://www.ethiopianreview.com/business/276 Sun, 13 Sep 2009 19:35:04 +0000 http://www.ethiopianreview.com/business/?p=276 AC]]> 276 2009-09-13 12:35:04 2009-09-13 19:35:04 open open free-resources-and-tools-for-starting-a-small-business publish 0 0 post _edit_lock 1252870628 _edit_last 2 What is the Cody Principle? How Will the Cody Principle Benefit Me? http://www.ethiopianreview.com/business/278 Sun, 13 Sep 2009 19:36:17 +0000 http://www.ethiopianreview.com/business/?p=278 AC ]]> 278 2009-09-13 12:36:17 2009-09-13 19:36:17 open open what-is-the-cody-principle-how-will-the-cody-principle-benefit-me publish 0 0 post _edit_lock 1252870578 _edit_last 2 Unprofessional, Aggressive, Rude Debt Collectors of America: Stop Being Jerks! http://www.ethiopianreview.com/business/280 Sun, 13 Sep 2009 19:37:09 +0000 http://www.ethiopianreview.com/business/?p=280 Dave Ramsey My Total Money Makeover forums. - by Lazy Murphy | AC]]> 280 2009-09-13 12:37:09 2009-09-13 19:37:09 open open unprofessional-aggressive-rude-debt-collectors-of-america-stop-being-jerks publish 0 0 post _edit_lock 1252870630 _edit_last 2 Trim Your Appliance Costs http://www.ethiopianreview.com/business/282 Sun, 13 Sep 2009 19:37:56 +0000 http://www.ethiopianreview.com/business/?p=282 AC]]> 282 2009-09-13 12:37:56 2009-09-13 19:37:56 open open trim-your-appliance-costs publish 0 0 post _edit_lock 1252870741 _edit_last 2 How I Got a Job at Forbes.Com http://www.ethiopianreview.com/business/284 Sun, 13 Sep 2009 19:38:39 +0000 http://www.ethiopianreview.com/business/?p=284 AC]]> 284 2009-09-13 12:38:39 2009-09-13 19:38:39 open open how-i-got-a-job-at-forbes-com publish 0 0 post _edit_lock 1252870719 _edit_last 2 Debt Consolidation: Is it the Right Solution for Your Home Loan? http://www.ethiopianreview.com/business/286 Sun, 13 Sep 2009 19:39:21 +0000 http://www.ethiopianreview.com/business/?p=286 AC]]> 286 2009-09-13 12:39:21 2009-09-13 19:39:21 open open debt-consolidation-is-it-the-right-solution-for-your-home-loan publish 0 0 post _edit_lock 1252870762 _edit_last 2 Small Business Marketing: Web Site Branding and Online Branding http://www.ethiopianreview.com/business/288 Sun, 13 Sep 2009 19:40:07 +0000 http://www.ethiopianreview.com/business/?p=288 AC]]> 288 2009-09-13 12:40:07 2009-09-13 19:40:07 open open small-business-marketing-web-site-branding-and-online-branding publish 0 0 post _edit_lock 1252870931 _edit_last 2 2361 24.11.137.175 2009-10-28 05:34:28 2009-10-28 12:34:28 Las Vegas Marketing for help with your small business marketing and small business web design.]]> 0 0 0 2010 Ford Fusion Radically Redesigned http://www.ethiopianreview.com/business/290 Sun, 13 Sep 2009 19:41:40 +0000 http://www.ethiopianreview.com/business/?p=290 AC]]> 290 2009-09-13 12:41:40 2009-09-13 19:41:40 open open 2010-ford-fusion-radically-redesigned publish 0 0 post _edit_lock 1252870900 _edit_last 2 Sick of Your 9 to 5? Be Your Own Boss with a Home Based Business! http://www.ethiopianreview.com/business/292 Sun, 13 Sep 2009 19:42:31 +0000 http://www.ethiopianreview.com/business/?p=292 AC]]> 292 2009-09-13 12:42:31 2009-09-13 19:42:31 open open sick-of-your-9-to-5-be-your-own-boss-with-a-home-based-business publish 0 0 post _edit_lock 1252870952 _edit_last 2 Why Small Businesses Need Business Credit Card Offers http://www.ethiopianreview.com/business/294 Sun, 13 Sep 2009 19:43:07 +0000 http://www.ethiopianreview.com/business/?p=294 AC]]> 294 2009-09-13 12:43:07 2009-09-13 19:43:07 open open why-small-businesses-need-business-credit-card-offers publish 0 0 post _edit_lock 1252871050 _edit_last 2 Making Great Halloween Costumes on a Budget http://www.ethiopianreview.com/business/296 Sun, 13 Sep 2009 19:43:50 +0000 http://www.ethiopianreview.com/business/?p=296 AC]]> 296 2009-09-13 12:43:50 2009-09-13 19:43:50 open open making-great-halloween-costumes-on-a-budget publish 0 0 post _edit_lock 1252871031 _edit_last 2 Best Four Ptc Sites to Earn Money - My Own Experience http://www.ethiopianreview.com/business/298 Sun, 13 Sep 2009 19:44:31 +0000 http://www.ethiopianreview.com/business/?p=298 AC]]> 298 2009-09-13 12:44:31 2009-09-13 19:44:31 open open best-four-ptc-sites-to-earn-money-my-own-experience publish 0 0 post _edit_lock 1252871071 _edit_last 2 How to File Taxes Without W2 http://www.ethiopianreview.com/business/300 Sun, 13 Sep 2009 19:45:05 +0000 http://www.ethiopianreview.com/business/?p=300 AC]]> 300 2009-09-13 12:45:05 2009-09-13 19:45:05 open open how-to-file-taxes-without-w2 publish 0 0 post _edit_lock 1252871349 _edit_last 2 How to Travel on a Budget http://www.ethiopianreview.com/business/302 Sun, 13 Sep 2009 19:45:34 +0000 http://www.ethiopianreview.com/business/?p=302 AC]]> 302 2009-09-13 12:45:34 2009-09-13 19:45:34 open open how-to-travel-on-a-budget publish 0 0 post _edit_lock 1252871378 _edit_last 2 Budget Friendly Halloween Costumes for the Whole Family http://www.ethiopianreview.com/business/304 Sun, 13 Sep 2009 19:46:15 +0000 http://www.ethiopianreview.com/business/?p=304 AC]]> 304 2009-09-13 12:46:15 2009-09-13 19:46:15 open open budget-friendly-halloween-costumes-for-the-whole-family publish 0 0 post _edit_lock 1252871359 _edit_last 2 Commodity Market: What Lies in Store http://www.ethiopianreview.com/business/306 Sun, 13 Sep 2009 19:50:50 +0000 http://www.ethiopianreview.com/business/?p=306 AC]]> 306 2009-09-13 12:50:50 2009-09-13 19:50:50 open open commodity-market-what-lies-in-store publish 0 0 post _edit_lock 1252871575 _edit_last 2 Business Cards that Wow Them! http://www.ethiopianreview.com/business/308 Sun, 13 Sep 2009 19:51:56 +0000 http://www.ethiopianreview.com/business/?p=308 AC]]> 308 2009-09-13 12:51:56 2009-09-13 19:51:56 open open business-cards-that-wow-them publish 0 0 post _edit_lock 1252871517 _edit_last 2 How to Prevent Asset Foreclosure http://www.ethiopianreview.com/business/310 Sun, 13 Sep 2009 19:52:39 +0000 http://www.ethiopianreview.com/business/?p=310 AC]]> 310 2009-09-13 12:52:39 2009-09-13 19:52:39 open open how-to-prevent-asset-foreclosure publish 0 0 post _edit_lock 1252871560 _edit_last 2 Mortgage Foreclosure Law http://www.ethiopianreview.com/business/312 Sun, 13 Sep 2009 19:54:22 +0000 http://www.ethiopianreview.com/business/?p=312 AC]]> 312 2009-09-13 12:54:22 2009-09-13 19:54:22 open open mortgage-foreclosure-law publish 0 0 post _edit_lock 1252871849 _edit_last 2 FHA Foreclosure http://www.ethiopianreview.com/business/314 Sun, 13 Sep 2009 19:56:33 +0000 http://www.ethiopianreview.com/business/?p=314 AC]]> 314 2009-09-13 12:56:33 2009-09-13 19:56:33 open open fha-foreclosure publish 0 0 post _edit_lock 1252871861 _edit_last 2 Online Business Opportunities http://www.ethiopianreview.com/business/316 Sun, 13 Sep 2009 19:57:15 +0000 http://www.ethiopianreview.com/business/?p=316 AC]]> 316 2009-09-13 12:57:15 2009-09-13 19:57:15 open open online-business-opportunities publish 0 0 post _edit_lock 1252871903 _edit_last 2 How to Get Out of Debt and Stay Out http://www.ethiopianreview.com/business/318 Sun, 13 Sep 2009 19:59:20 +0000 http://www.ethiopianreview.com/business/?p=318 AC]]> 318 2009-09-13 12:59:20 2009-09-13 19:59:20 open open how-to-get-out-of-debt-and-stay-out publish 0 0 post _edit_lock 1252872026 _edit_last 2 How to Manage a Household Income http://www.ethiopianreview.com/business/320 Sun, 13 Sep 2009 19:59:58 +0000 http://www.ethiopianreview.com/business/?p=320 AC]]> 320 2009-09-13 12:59:58 2009-09-13 19:59:58 open open how-to-manage-a-household-income publish 0 0 post _edit_lock 1252871998 _edit_last 2 How to Shop Smart: Save Money One Store at a Time http://www.ethiopianreview.com/business/322 Sun, 13 Sep 2009 20:00:38 +0000 http://www.ethiopianreview.com/business/?p=322 AC]]> 322 2009-09-13 13:00:38 2009-09-13 20:00:38 open open how-to-shop-smart-save-money-one-store-at-a-time publish 0 0 post _edit_lock 1252872039 _edit_last 2 Healthy Eating for Business Travelers http://www.ethiopianreview.com/business/324 Sun, 13 Sep 2009 20:01:31 +0000 http://www.ethiopianreview.com/business/?p=324 AC]]> 324 2009-09-13 13:01:31 2009-09-13 20:01:31 open open healthy-eating-for-business-travelers publish 0 0 post _edit_lock 1252872155 _edit_last 2 DT Asia is Awarded Innovative Entrepreneur of the Year 2009 http://www.ethiopianreview.com/business/326 Sun, 13 Sep 2009 20:02:28 +0000 http://www.ethiopianreview.com/business/?p=326 AC]]> 326 2009-09-13 13:02:28 2009-09-13 20:02:28 open open dt-asia-is-awarded-innovative-entrepreneur-of-the-year-2009 publish 0 0 post _edit_lock 1252872150 _edit_last 2 The Award-Winning Zero Budget Campaign by DT Communications Asia Pacific http://www.ethiopianreview.com/business/328 Sun, 13 Sep 2009 20:03:12 +0000 http://www.ethiopianreview.com/business/?p=328 AC ]]> 328 2009-09-13 13:03:12 2009-09-13 20:03:12 open open the-award-winning-zero-budget-campaign-by-dt-communications-asia-pacific publish 0 0 post _edit_lock 1252872193 _edit_last 2 Top 10 Business Travel Tech Necessities for Working Moms http://www.ethiopianreview.com/business/330 Sun, 13 Sep 2009 20:07:45 +0000 http://www.ethiopianreview.com/business/?p=330 AC ]]> 330 2009-09-13 13:07:45 2009-09-13 20:07:45 open open top-10-business-travel-tech-necessities-for-working-moms publish 0 0 post _edit_lock 1252872591 _edit_last 2 Delegating, What and Why? http://www.ethiopianreview.com/business/332 Sun, 13 Sep 2009 20:09:11 +0000 http://www.ethiopianreview.com/business/?p=332 AC]]> 332 2009-09-13 13:09:11 2009-09-13 20:09:11 open open delegating-what-and-why publish 0 0 post _edit_lock 1252872551 _edit_last 2 Get the Top Individual Voluntary Agreement Provider http://www.ethiopianreview.com/business/334 Sun, 13 Sep 2009 20:09:52 +0000 http://www.ethiopianreview.com/business/?p=334 AC]]> 334 2009-09-13 13:09:52 2009-09-13 20:09:52 open open get-the-top-individual-voluntary-agreement-provider publish 0 0 post _edit_lock 1252872593 _edit_last 2 Eat Wisely and Enjoy Travel at the Same Time http://www.ethiopianreview.com/business/336 Sun, 13 Sep 2009 20:10:42 +0000 http://www.ethiopianreview.com/business/?p=336 AC]]> 336 2009-09-13 13:10:42 2009-09-13 20:10:42 open open eat-wisely-and-enjoy-travel-at-the-same-time publish 0 0 post _edit_lock 1252872706 _edit_last 2 Top 10 Gadgets for Business Travel http://www.ethiopianreview.com/business/338 Sun, 13 Sep 2009 20:11:21 +0000 http://www.ethiopianreview.com/business/?p=338 AC]]> 338 2009-09-13 13:11:21 2009-09-13 20:11:21 open open top-10-gadgets-for-business-travel publish 0 0 post _edit_lock 1252872682 _edit_last 2 Top 10 Tech Necessities Every Business Traveler Needs http://www.ethiopianreview.com/business/340 Sun, 13 Sep 2009 20:12:14 +0000 http://www.ethiopianreview.com/business/?p=340 AC]]> 340 2009-09-13 13:12:14 2009-09-13 20:12:14 open open top-10-tech-necessities-every-business-traveler-needs publish 0 0 post _edit_lock 1252872735 _edit_last 2 How an Afternoon Nap Increases Your Productivity http://www.ethiopianreview.com/business/342 Sun, 13 Sep 2009 20:13:19 +0000 http://www.ethiopianreview.com/business/?p=342 brain fitness. - by Andre Auerbach | AC]]> 342 2009-09-13 13:13:19 2009-09-13 20:13:19 open open how-an-afternoon-nap-increases-your-productivity publish 0 0 post _edit_lock 1252872923 _edit_last 2 Federal Deficits Keep Soaring and Prolong Recession http://www.ethiopianreview.com/business/344 Sun, 13 Sep 2009 20:13:58 +0000 http://www.ethiopianreview.com/business/?p=344 AC]]> 344 2009-09-13 13:13:58 2009-09-13 20:13:58 open open federal-deficits-keep-soaring-and-prolong-recession publish 0 0 post _edit_lock 1252872901 _edit_last 2 What is Strategic Web Presence Planning and How Does it Work? http://www.ethiopianreview.com/business/346 Sun, 13 Sep 2009 20:15:19 +0000 http://www.ethiopianreview.com/business/?p=346 AC]]> 346 2009-09-13 13:15:19 2009-09-13 20:15:19 open open what-is-strategic-web-presence-planning-and-how-does-it-work publish 0 0 post _edit_lock 1252872920 _edit_last 2 Directcameradeals.Com: Can I Get a Free Canon Camera? http://www.ethiopianreview.com/business/348 Sun, 13 Sep 2009 20:16:33 +0000 http://www.ethiopianreview.com/business/348 AC]]> 348 2009-09-13 13:16:33 2009-09-13 20:16:33 open open directcameradeals-com-can-i-get-a-free-canon-camera publish 0 0 post _edit_lock 1252873065 _edit_last 2 Venture Capital / Investor: Prepare Your Pitch! http://www.ethiopianreview.com/business/349 Sun, 13 Sep 2009 20:17:15 +0000 http://www.ethiopianreview.com/business/?p=349 AC]]> 349 2009-09-13 13:17:15 2009-09-13 20:17:15 open open venture-capital-investor-prepare-your-pitch publish 0 0 post _edit_lock 1252873100 _edit_last 2 Social Networking is Good for Your Business! http://www.ethiopianreview.com/business/351 Sun, 13 Sep 2009 20:18:29 +0000 http://www.ethiopianreview.com/business/?p=351 AC]]> 351 2009-09-13 13:18:29 2009-09-13 20:18:29 open open social-networking-is-good-for-your-business publish 0 0 post _edit_lock 1252873112 _edit_last 2 New Method: Real-Time Monitoring of Customer Waiting Time Performance http://www.ethiopianreview.com/business/353 Sun, 13 Sep 2009 20:19:33 +0000 http://www.ethiopianreview.com/business/?p=353 AC]]> 353 2009-09-13 13:19:33 2009-09-13 20:19:33 open open new-method-real-time-monitoring-of-customer-waiting-time-performance publish 0 0 post _edit_lock 1252873236 _edit_last 2 Boost Your Business With Blogging! http://www.ethiopianreview.com/business/355 Sun, 13 Sep 2009 20:20:21 +0000 http://www.ethiopianreview.com/business/?p=355 AC]]> 355 2009-09-13 13:20:21 2009-09-13 20:20:21 open open boost-your-business-with-blogging publish 0 0 post _edit_lock 1252873222 _edit_last 2 Should You Buy Bank of America Stock? http://www.ethiopianreview.com/business/357 Sun, 13 Sep 2009 20:20:59 +0000 http://www.ethiopianreview.com/business/?p=357 AC]]> 357 2009-09-13 13:20:59 2009-09-13 20:20:59 open open should-you-buy-bank-of-america-stock publish 0 0 post _edit_lock 1252873260 _edit_last 2 Exxon Mobil Stock: Should You Buy Exxon Mobil Stock? http://www.ethiopianreview.com/business/359 Sun, 13 Sep 2009 20:22:13 +0000 http://www.ethiopianreview.com/business/?p=359 AC]]> 359 2009-09-13 13:22:13 2009-09-13 20:22:13 open open exxon-mobil-stock-should-you-buy-exxon-mobil-stock publish 0 0 post _edit_lock 1252873396 _edit_last 2 218 64.253.68.226 2009-10-03 05:09:13 2009-10-03 12:09:13 0 0 0 Citigroup Stock: Should You Buy Citigroup Stock? http://www.ethiopianreview.com/business/361 Sun, 13 Sep 2009 20:22:54 +0000 http://www.ethiopianreview.com/business/?p=361 AC ]]> 361 2009-09-13 13:22:54 2009-09-13 20:22:54 open open citigroup-stock-should-you-buy-citigroup-stock publish 0 0 post _edit_lock 1252873375 _edit_last 2 2364 124.120.190.171 2009-11-01 22:27:10 2009-11-02 05:27:10 0 0 0 JP Morgan Stock: Should You Buy JP Morgan Stock? http://www.ethiopianreview.com/business/363 Sun, 13 Sep 2009 20:23:37 +0000 http://www.ethiopianreview.com/business/?p=363 AC]]> 363 2009-09-13 13:23:37 2009-09-13 20:23:37 open open jp-morgan-stock-should-you-buy-jp-morgan-stock publish 0 0 post _edit_lock 1252873417 _edit_last 2 How to Trade Stocks: Stocks to Trade and Stocks to Avoid http://www.ethiopianreview.com/business/365 Sun, 13 Sep 2009 20:24:32 +0000 http://www.ethiopianreview.com/business/?p=365 Stock Trading 101 - Part XII Stick with NYSE and Nasdaq stocks priced $5.00+ - Listing requirements vary, but NYSE and the Nasdaq have the highest - better protection against misrepresentation or fraud. Foreign stocks can also be listed on NYSE or the Nasdaq, provided they meet the listing/reporting requirements, in the form of ADR (American Depositary Receipts) or ADS (American Depositary Shares), offering direct access to some of the hottest foreign markets like China and India. The lower a stock's price, the faster it can move in either direction because any stock can move a buck a day, and a buck is a buck; but it's a 20% move for a $5.00 stock and only a 2% move for a $50.00 one. Stocks priced below $5.00 are more likely to be subject to manipulation and may not be marginable. Low priced stocks seem to have an irresistible allure for novices who look at the long-term chart of Microsoft and go: "Had I bought this stock 20 years ago when it was selling for pennies, I would be rich by now!" So they set out on a search for "the next Microsoft" they can load up on for pennies today. The problem is: Microsoft never traded for pennies. The price has been adjusted for stock splits. If anything, Microsoft seemed too expensive to most when it was hot. Reverse Mergers Another common way to bring small cap stocks to market is through a reverse merger when a privately held company (foreign or domestic) buys a US listed shell - a public company with no operations whose stock sells for pennies, and merges itself into it, assuming its identity and thus becoming a publicly traded company. The operations of the acquiring company now "fill" the shell. The principals can sell their shares to US investors and raise capital. This cheaper alternative explains how many hot Chinese stocks have appeared seemingly out of nowhere on traders' radar screens. Avoid Penny Stocks, BB (Bulletin Board), and PK (Pink Sheets) Stocks As the name suggests, penny stocks trade for under $1.00. If a stock does not meet the general NYSE/Nasdaq requirements, it can still be listed on the Nasdaq's Bulletin Board or in Pink Sheets (as indicated by the .OB or .PK upended to the symbol accordingly.) Don't go there. Due to limited reporting/disclosure requirements, these stocks are rife with fraud and manipulation. The most typical form of manipulation is pump and dump, where an operator buys a lot of low priced .OB/.PK shares in a low float stock and then pumps it up on message boards as the next big something: "about to get a huge Federal contract, discover cure for cancer, launch a new killer product," etc., causing the price to rise dramatically in a short period of time, thus attracting naive investors. Once the stock has been pumped up to an unsustainable high, the operator begins to dump - sell the marked up stock to enthusiastic simpletons. Most buyers end up bagholders - buying high (during the pump) and ending up with a sudden loss after the dump. - by Slav Fedorov | AC]]> 365 2009-09-13 13:24:32 2009-09-13 20:24:32 open open how-to-trade-stocks-stocks-to-trade-and-stocks-to-avoid publish 0 0 post _edit_lock 1252873535 _edit_last 2 More Tips on Making Money with Google http://www.ethiopianreview.com/business/367 Sun, 13 Sep 2009 20:25:32 +0000 http://www.ethiopianreview.com/business/?p=367 ig list of Free Press Release Hopefully this will provide some help to getting your blog up and visitors to your blog. - by Renee Brown | AC ]]> 367 2009-09-13 13:25:32 2009-09-13 20:25:32 open open more-tips-on-making-money-with-google publish 0 0 post _edit_lock 1252873533 _edit_last 2 How to Shop for a Great Web Hosting Provider? http://www.ethiopianreview.com/business/369 Sun, 13 Sep 2009 20:26:05 +0000 http://www.ethiopianreview.com/business/?p=369 AC]]> 369 2009-09-13 13:26:05 2009-09-13 20:26:05 open open how-to-shop-for-a-great-web-hosting-provider publish 0 0 post _edit_lock 1252873566 _edit_last 2 Do Your Customers Trust You? http://www.ethiopianreview.com/business/371 Sun, 13 Sep 2009 20:27:57 +0000 http://www.ethiopianreview.com/business/?p=371 AC ]]> 371 2009-09-13 13:27:57 2009-09-13 20:27:57 open open do-your-customers-trust-you publish 0 0 post _edit_lock 1252874404 _edit_last 2 Just Laid Off? 5 Tips for the Newly Unemployed http://www.ethiopianreview.com/business/373 Sun, 13 Sep 2009 20:28:44 +0000 http://www.ethiopianreview.com/business/?p=373 AC]]> 373 2009-09-13 13:28:44 2009-09-13 20:28:44 open open just-laid-off-5-tips-for-the-newly-unemployed publish 0 0 post _edit_lock 1252874391 _edit_last 2 California Tax Incentives to Help Corporations http://www.ethiopianreview.com/business/376 Sun, 13 Sep 2009 20:40:10 +0000 http://www.ethiopianreview.com/business/?p=376 AC]]> 376 2009-09-13 13:40:10 2009-09-13 20:40:10 open open california-tax-incentives-to-help-corporations publish 0 0 post _edit_lock 1252874411 _edit_last 2 N.C. Economic Survival Tips http://www.ethiopianreview.com/business/378 Sun, 13 Sep 2009 20:40:52 +0000 http://www.ethiopianreview.com/business/?p=378 AC]]> 378 2009-09-13 13:40:52 2009-09-13 20:40:52 open open n-c-economic-survival-tips publish 0 0 post _edit_lock 1252874576 _edit_last 2 What Do You Know About Venture Capital Funds http://www.ethiopianreview.com/business/380 Sun, 13 Sep 2009 20:42:09 +0000 http://www.ethiopianreview.com/business/?p=380 AC ]]> 380 2009-09-13 13:42:09 2009-09-13 20:42:09 open open what-do-you-know-about-venture-capital-funds publish 0 0 post _edit_lock 1252874529 _edit_last 2 4 Steps to Starting Your Own Online Business http://www.ethiopianreview.com/business/382 Sun, 13 Sep 2009 20:42:56 +0000 http://www.ethiopianreview.com/business/?p=382 AC]]> 382 2009-09-13 13:42:56 2009-09-13 20:42:56 open open 4-steps-to-starting-your-own-online-business publish 0 0 post _edit_lock 1252874578 _edit_last 2 Celebrating Halloween at the Office http://www.ethiopianreview.com/business/384 Sun, 13 Sep 2009 20:43:58 +0000 http://www.ethiopianreview.com/business/?p=384 AC ]]> 384 2009-09-13 13:43:58 2009-09-13 20:43:58 open open celebrating-halloween-at-the-office publish 0 0 post _edit_lock 1252874639 _edit_last 2 568 66.60.98.1 2009-10-05 16:07:42 2009-10-05 23:07:42 0 0 0 Importance of Cash Books in Accounting http://www.ethiopianreview.com/business/386 Sun, 13 Sep 2009 20:44:47 +0000 http://www.ethiopianreview.com/business/?p=386 AC]]> 386 2009-09-13 13:44:47 2009-09-13 20:44:47 open open importance-of-cash-books-in-accounting publish 0 0 post _edit_lock 1252874813 _edit_last 2 3 Major Pages in Traffic Exchange http://www.ethiopianreview.com/business/388 Sun, 13 Sep 2009 20:45:49 +0000 http://www.ethiopianreview.com/business/?p=388 Fast Traffic. - by Ruth Abigail Sebastian | AC]]> 388 2009-09-13 13:45:49 2009-09-13 20:45:49 open open 3-major-pages-in-traffic-exchange publish 0 0 post _edit_lock 1252874820 _edit_last 2 Twentysomethings: Should You Have a Credit Card? http://www.ethiopianreview.com/business/390 Sun, 13 Sep 2009 20:47:15 +0000 http://www.ethiopianreview.com/business/?p=390 AC]]> 390 2009-09-13 13:47:15 2009-09-13 20:47:15 open open twentysomethings-should-you-have-a-credit-card publish 0 0 post _edit_lock 1252874836 _edit_last 2 Owners Need to Protect Employees from H1N1 http://www.ethiopianreview.com/business/392 Sun, 13 Sep 2009 21:01:44 +0000 http://www.ethiopianreview.com/business/?p=392 AC]]> 392 2009-09-13 14:01:44 2009-09-13 21:01:44 open open owners-need-to-protect-employees-from-h1n1 publish 0 0 post _edit_lock 1252875794 _edit_last 2 Linux in the Corporate Environment on the Desktop http://www.ethiopianreview.com/business/397 Sun, 13 Sep 2009 21:03:56 +0000 http://www.ethiopianreview.com/business/?p=397 AC]]> 397 2009-09-13 14:03:56 2009-09-13 21:03:56 open open linux-in-the-corporate-environment-on-the-desktop publish 0 0 post _edit_lock 1252875900 _edit_last 2 Ray Kroc's Evil Empire - McDonald's http://www.ethiopianreview.com/business/399 Sun, 13 Sep 2009 21:04:52 +0000 http://www.ethiopianreview.com/business/?p=399 AC]]> 399 2009-09-13 14:04:52 2009-09-13 21:04:52 open open ray-krocs-evil-empire-mcdonalds publish 0 0 post _edit_lock 1252875892 _edit_last 2 Accounting and Some General Terms and Principals http://www.ethiopianreview.com/business/401 Sun, 13 Sep 2009 21:05:32 +0000 http://www.ethiopianreview.com/business/?p=401 AC]]> 401 2009-09-13 14:05:32 2009-09-13 21:05:32 open open accounting-and-some-general-terms-and-principals publish 0 0 post _edit_lock 1252875933 _edit_last 2 Lessons from Life: Basics of Business http://www.ethiopianreview.com/business/403 Sun, 13 Sep 2009 21:06:28 +0000 http://www.ethiopianreview.com/business/?p=403 AC]]> 403 2009-09-13 14:06:28 2009-09-13 21:06:28 open open lessons-from-life-basics-of-business publish 0 0 post _edit_lock 1252876052 _edit_last 2 Keys to Running a Restaurant Franchise http://www.ethiopianreview.com/business/405 Sun, 13 Sep 2009 21:07:06 +0000 http://www.ethiopianreview.com/business/?p=405 AC]]> 405 2009-09-13 14:07:06 2009-09-13 21:07:06 open open keys-to-running-a-restaurant-franchise publish 0 0 post _edit_lock 1252876027 _edit_last 2 Saving Money on College Visits http://www.ethiopianreview.com/business/407 Sun, 13 Sep 2009 21:07:52 +0000 http://www.ethiopianreview.com/business/?p=407 AC]]> 407 2009-09-13 14:07:52 2009-09-13 21:07:52 open open saving-money-on-college-visits publish 0 0 post _edit_lock 1252876072 _edit_last 2 Tips on Maximizing Student Financial Aid http://www.ethiopianreview.com/business/409 Sun, 13 Sep 2009 21:08:36 +0000 http://www.ethiopianreview.com/business/?p=409 AC]]> 409 2009-09-13 14:08:36 2009-09-13 21:08:36 open open tips-on-maximizing-student-financial-aid publish 0 0 post _edit_lock 1252876181 _edit_last 2 Can You Buy a Home when You Have Credit Problems? http://www.ethiopianreview.com/business/411 Sun, 13 Sep 2009 21:09:17 +0000 http://www.ethiopianreview.com/business/?p=411 AC]]> 411 2009-09-13 14:09:17 2009-09-13 21:09:17 open open can-you-buy-a-home-when-you-have-credit-problems publish 0 0 post _edit_lock 1252876158 _edit_last 2 Easing Our Lives by Paying Taxes Via Credit Cards http://www.ethiopianreview.com/business/413 Sun, 13 Sep 2009 21:09:46 +0000 http://www.ethiopianreview.com/business/?p=413 AC]]> 413 2009-09-13 14:09:46 2009-09-13 21:09:46 open open easing-our-lives-by-paying-taxes-via-credit-cards publish 0 0 post _edit_lock 1252876254 _edit_last 2 Tragedy Rakes in Big Money: Why You Need to Keep Your Wallet Closed http://www.ethiopianreview.com/business/415 Sun, 13 Sep 2009 21:10:33 +0000 http://www.ethiopianreview.com/business/?p=415 AC]]> 415 2009-09-13 14:10:33 2009-09-13 21:10:33 open open tragedy-rakes-in-big-money-why-you-need-to-keep-your-wallet-closed publish 0 0 post _edit_lock 1252876234 _edit_last 2 Beat the Recession with These Two Business Growing Technologies http://www.ethiopianreview.com/business/417 Sun, 13 Sep 2009 21:11:22 +0000 http://www.ethiopianreview.com/business/?p=417 AC]]> 417 2009-09-13 14:11:22 2009-09-13 21:11:22 open open beat-the-recession-with-these-two-business-growing-technologies publish 0 0 post _edit_lock 1252876283 _edit_last 2 Using the GREAT Process to Make a Sale! http://www.ethiopianreview.com/business/419 Sun, 13 Sep 2009 21:12:06 +0000 http://www.ethiopianreview.com/business/?p=419 AC]]> 419 2009-09-13 14:12:06 2009-09-13 21:12:06 open open using-the-great-process-to-make-a-sale publish 0 0 post _edit_lock 1252876326 _edit_last 2 7 Places to Find Money http://www.ethiopianreview.com/business/421 Sun, 13 Sep 2009 21:12:56 +0000 http://www.ethiopianreview.com/business/?p=421 AC]]> 421 2009-09-13 14:12:56 2009-09-13 21:12:56 open open 7-places-to-find-money publish 0 0 post _edit_lock 1252876378 _edit_last 2 Buying a Home? Experts Say Take Out a 15 Year Mortgage, Not a 30 Year Loan http://www.ethiopianreview.com/business/423 Sun, 13 Sep 2009 21:15:34 +0000 http://www.ethiopianreview.com/business/?p=423 AC]]> 423 2009-09-13 14:15:34 2009-09-13 21:15:34 open open buying-a-home-experts-say-take-out-a-15-year-mortgage-not-a-30-year-loan publish 0 0 post _edit_lock 1252876600 _edit_last 2 How to Teach Your Homeschooler About Currencies Around the World http://www.ethiopianreview.com/business/426 Sun, 13 Sep 2009 21:16:16 +0000 http://www.ethiopianreview.com/business/?p=426 AC]]> 426 2009-09-13 14:16:16 2009-09-13 21:16:16 open open how-to-teach-your-homeschooler-about-currencies-around-the-world publish 0 0 post _edit_lock 1252876578 _edit_last 2 How to Build a Successful Business Model http://www.ethiopianreview.com/business/429 Sun, 13 Sep 2009 21:16:57 +0000 http://www.ethiopianreview.com/business/?p=429 AC]]> 429 2009-09-13 14:16:57 2009-09-13 21:16:57 open open how-to-build-a-successful-business-model publish 0 0 post _edit_lock 1252876618 _edit_last 2 Accounting: The Bottom Line http://www.ethiopianreview.com/business/431 Sun, 13 Sep 2009 21:18:33 +0000 http://www.ethiopianreview.com/business/?p=431 AC]]> 431 2009-09-13 14:18:33 2009-09-13 21:18:33 open open accounting-the-bottom-line publish 0 0 post _edit_lock 1252876838 _edit_last 2 Ford Motor Company: Management and Leadership http://www.ethiopianreview.com/business/433 Sun, 13 Sep 2009 21:19:53 +0000 http://www.ethiopianreview.com/business/?p=433 AC]]> 433 2009-09-13 14:19:53 2009-09-13 21:19:53 open open ford-motor-company-management-and-leadership publish 0 0 post _edit_lock 1252876794 _edit_last 2 How to Write a Professional Complaint Letter http://www.ethiopianreview.com/business/435 Sun, 13 Sep 2009 21:20:38 +0000 http://www.ethiopianreview.com/business/?p=435 AC]]> 435 2009-09-13 14:20:38 2009-09-13 21:20:38 open open how-to-write-a-professional-complaint-letter publish 0 0 post _edit_lock 1252876839 _edit_last 2 Cheronda Guyton Vilified for Wells Fargo Bank Repossessed Home Use? http://www.ethiopianreview.com/business/437 Sun, 13 Sep 2009 21:22:27 +0000 http://www.ethiopianreview.com/business/?p=437 AC]]> 437 2009-09-13 14:22:27 2009-09-13 21:22:27 open open cheronda-guyton-vilified-for-wells-fargo-bank-repossessed-home-use publish 0 0 post _edit_lock 1252877013 _edit_last 2 How to Creatively Pay for College in Bad Financial Times http://www.ethiopianreview.com/business/439 Sun, 13 Sep 2009 21:23:09 +0000 http://www.ethiopianreview.com/business/?p=439 AC]]> 439 2009-09-13 14:23:09 2009-09-13 21:23:09 open open how-to-creatively-pay-for-college-in-bad-financial-times publish 0 0 post _edit_lock 1252876990 _edit_last 2 Excel in Today's Market: Choosing the Right Options Broker http://www.ethiopianreview.com/business/441 Sun, 13 Sep 2009 21:24:02 +0000 http://www.ethiopianreview.com/business/?p=441 AC]]> 441 2009-09-13 14:24:02 2009-09-13 21:24:02 open open excel-in-todays-market-choosing-the-right-options-broker publish 0 0 post _edit_lock 1252877043 _edit_last 2 An Economic Forecast for Christmas http://www.ethiopianreview.com/business/443 Sun, 13 Sep 2009 21:24:55 +0000 http://www.ethiopianreview.com/business/?p=443 AC]]> 443 2009-09-13 14:24:55 2009-09-13 21:24:55 open open an-economic-forecast-for-christmas publish 0 0 post _edit_lock 1252877279 _edit_last 2 Disney Buying Marvel: The Shot Heard Round the World http://www.ethiopianreview.com/business/445 Sun, 13 Sep 2009 21:25:56 +0000 http://www.ethiopianreview.com/business/?p=445 AC]]> 445 2009-09-13 14:25:56 2009-09-13 21:25:56 open open disney-buying-marvel-the-shot-heard-round-the-world publish 0 0 post _edit_lock 1252877281 _edit_last 2 204 74.194.134.248 2009-10-02 17:04:38 2009-10-03 00:04:38 0 0 0 Goodwill Gets $19 Million to Help Children http://www.ethiopianreview.com/business/447 Sun, 13 Sep 2009 21:29:14 +0000 http://www.ethiopianreview.com/business/?p=447 AC]]> 447 2009-09-13 14:29:14 2009-09-13 21:29:14 open open goodwill-gets-19-million-to-help-children publish 0 0 post _edit_lock 1252877419 _edit_last 2 How to Start a Guitar Lesson Business http://www.ethiopianreview.com/business/449 Sun, 13 Sep 2009 21:30:17 +0000 http://www.ethiopianreview.com/business/?p=449 AC]]> 449 2009-09-13 14:30:17 2009-09-13 21:30:17 open open how-to-start-a-guitar-lesson-business publish 0 0 post _edit_lock 1252877417 _edit_last 2 Click Internet Marketing: a Circular Maze http://www.ethiopianreview.com/business/451 Sun, 13 Sep 2009 21:31:07 +0000 http://www.ethiopianreview.com/business/?p=451 AC]]> 451 2009-09-13 14:31:07 2009-09-13 21:31:07 open open click-internet-marketing-a-circular-maze publish 0 0 post _edit_lock 1252877531 _edit_last 2 How to Build a Business Website Fast http://www.ethiopianreview.com/business/453 Sun, 13 Sep 2009 21:31:48 +0000 http://www.ethiopianreview.com/business/?p=453 AC]]> 453 2009-09-13 14:31:48 2009-09-13 21:31:48 open open how-to-build-a-business-website-fast publish 0 0 post _edit_lock 1252877571 _edit_last 2 Gift Baskets Are a Fun and Profitable Home-Based Business http://www.ethiopianreview.com/business/455 Sun, 13 Sep 2009 21:34:19 +0000 http://www.ethiopianreview.com/business/?p=455 AC]]> 455 2009-09-13 14:34:19 2009-09-13 21:34:19 open open gift-baskets-are-a-fun-and-profitable-home-based-business publish 0 0 post _edit_lock 1252877963 _edit_last 2 Learning to Be Frugal - 3 Web sites to Get You Started http://www.ethiopianreview.com/business/457 Sun, 13 Sep 2009 21:35:09 +0000 http://www.ethiopianreview.com/business/?p=457 AC]]> 457 2009-09-13 14:35:09 2009-09-13 21:35:09 open open learning-to-be-frugal-3-web-sites-to-get-you-started publish 0 0 post _edit_lock 1252877709 _edit_last 2 4 Reasons for a Business to Use an Online Fax Service http://www.ethiopianreview.com/business/459 Sun, 13 Sep 2009 21:40:31 +0000 http://www.ethiopianreview.com/business/?p=459 AC]]> 459 2009-09-13 14:40:31 2009-09-13 21:40:31 open open 4-reasons-for-a-business-to-use-an-online-fax-service publish 0 0 post _edit_lock 1252878095 _edit_last 2 Living Green on a Budget http://www.ethiopianreview.com/business/462 Sun, 13 Sep 2009 21:43:10 +0000 http://www.ethiopianreview.com/business/?p=462 AC]]> 462 2009-09-13 14:43:10 2009-09-13 21:43:10 open open living-green-on-a-budget publish 0 0 post _edit_lock 1252878254 _edit_last 2 Innovate Your Business by Taking Risks http://www.ethiopianreview.com/business/464 Sun, 13 Sep 2009 21:46:29 +0000 http://www.ethiopianreview.com/business/?p=464 AC]]> 464 2009-09-13 14:46:29 2009-09-13 21:46:29 open open innovate-your-business-by-taking-risks publish 0 0 post _edit_lock 1252878573 _edit_last 2 What Skills Are Needed to Start Home Inspection Business? http://www.ethiopianreview.com/business/466 Sun, 13 Sep 2009 21:47:29 +0000 http://www.ethiopianreview.com/business/?p=466 AC ]]> 466 2009-09-13 14:47:29 2009-09-13 21:47:29 open open what-skills-are-needed-to-start-home-inspection-business publish 0 0 post _edit_lock 1252878572 _edit_last 2 How to Start Home Inspection Business http://www.ethiopianreview.com/business/468 Sun, 13 Sep 2009 21:49:48 +0000 http://www.ethiopianreview.com/business/?p=468 AC]]> 468 2009-09-13 14:49:48 2009-09-13 21:49:48 open open how-to-start-home-inspection-business publish 0 0 post _edit_lock 1252878590 _edit_last 2 How to Boost Your Home Inspection Business http://www.ethiopianreview.com/business/470 Sun, 13 Sep 2009 21:50:38 +0000 http://www.ethiopianreview.com/business/?p=470 AC]]> 470 2009-09-13 14:50:38 2009-09-13 21:50:38 open open how-to-boost-your-home-inspection-business publish 0 0 post _edit_lock 1252878701 _edit_last 2 Where to Cash Economic Stimulus Check http://www.ethiopianreview.com/business/472 Sun, 13 Sep 2009 21:51:12 +0000 http://www.ethiopianreview.com/business/?p=472 AC]]> 472 2009-09-13 14:51:12 2009-09-13 21:51:12 open open where-to-cash-economic-stimulus-check publish 0 0 post _edit_lock 1252878672 _edit_last 2 Home Equity Credit: Converting from Adjustable to Fixed http://www.ethiopianreview.com/business/474 Sun, 13 Sep 2009 21:51:52 +0000 http://www.ethiopianreview.com/business/?p=474 AC]]> 474 2009-09-13 14:51:52 2009-09-13 21:51:52 open open home-equity-credit-converting-from-adjustable-to-fixed publish 0 0 post _edit_lock 1252878713 _edit_last 2 How to Get Lower Interest Rate on Existing Home Loans? http://www.ethiopianreview.com/business/476 Sun, 13 Sep 2009 21:52:40 +0000 http://www.ethiopianreview.com/business/?p=476 AC]]> 476 2009-09-13 14:52:40 2009-09-13 21:52:40 open open how-to-get-lower-interest-rate-on-existing-home-loans publish 0 0 post _edit_lock 1252878825 _edit_last 2 How to Qualify for FHA Home Improvement Loan http://www.ethiopianreview.com/business/478 Sun, 13 Sep 2009 21:53:24 +0000 http://www.ethiopianreview.com/business/?p=478 AC]]> 478 2009-09-13 14:53:24 2009-09-13 21:53:24 open open how-to-qualify-for-fha-home-improvement-loan publish 0 0 post _edit_lock 1252878804 _edit_last 2 Ebay and Craigslist Pros and Cons http://www.ethiopianreview.com/business/480 Sun, 13 Sep 2009 21:54:08 +0000 http://www.ethiopianreview.com/business/?p=480 AC]]> 480 2009-09-13 14:54:08 2009-09-13 21:54:08 open open ebay-and-craigslist-pros-and-cons publish 0 0 post _edit_lock 1252878849 _edit_last 2 Top Causes and Effects of Inflation http://www.ethiopianreview.com/business/482 Sun, 13 Sep 2009 21:54:54 +0000 http://www.ethiopianreview.com/business/?p=482 AC]]> 482 2009-09-13 14:54:54 2009-09-13 21:54:54 open open top-causes-and-effects-of-inflation publish 0 0 post _edit_lock 1252878959 _edit_last 2 Comparative Statement Analysis http://www.ethiopianreview.com/business/484 Sun, 13 Sep 2009 21:55:33 +0000 http://www.ethiopianreview.com/business/?p=484 AC]]> 484 2009-09-13 14:55:33 2009-09-13 21:55:33 open open comparative-statement-analysis publish 0 0 post _edit_lock 1252878934 _edit_last 2 Survive a Recession as a Freelancer http://www.ethiopianreview.com/business/486 Sun, 13 Sep 2009 21:56:13 +0000 http://www.ethiopianreview.com/business/?p=486 AC]]> 486 2009-09-13 14:56:13 2009-09-13 21:56:13 open open survive-a-recession-as-a-freelancer publish 0 0 post _edit_lock 1252878975 _edit_last 2 Promoting a New Small Retail Business, With Little Expense http://www.ethiopianreview.com/business/488 Sun, 13 Sep 2009 21:57:02 +0000 http://www.ethiopianreview.com/business/?p=488 AC]]> 488 2009-09-13 14:57:02 2009-09-13 21:57:02 open open promoting-a-new-small-retail-business-with-little-expense publish 0 0 post _edit_lock 1252879086 _edit_last 2 How to Capture the Best Professional Business Photo http://www.ethiopianreview.com/business/490 Sun, 13 Sep 2009 21:57:48 +0000 http://www.ethiopianreview.com/business/?p=490 AC]]> 490 2009-09-13 14:57:48 2009-09-13 21:57:48 open open how-to-capture-the-best-professional-business-photo publish 0 0 post _edit_lock 1252879068 _edit_last 2 Do Dollar Stores Provide the Best Value? http://www.ethiopianreview.com/business/492 Sun, 13 Sep 2009 21:58:24 +0000 http://www.ethiopianreview.com/business/?p=492 AC]]> 492 2009-09-13 14:58:24 2009-09-13 21:58:24 open open do-dollar-stores-provide-the-best-value publish 0 0 post _edit_lock 1252879105 _edit_last 2 Consider Buying Savings Bonds http://www.ethiopianreview.com/business/494 Sun, 13 Sep 2009 21:59:13 +0000 http://www.ethiopianreview.com/business/?p=494 AC]]> 494 2009-09-13 14:59:13 2009-09-13 21:59:13 open open consider-buying-savings-bonds publish 0 0 post _edit_lock 1252879217 _edit_last 2 How to Manage Your Money: Ten Tips for Regular People http://www.ethiopianreview.com/business/496 Sun, 13 Sep 2009 21:59:52 +0000 http://www.ethiopianreview.com/business/?p=496 AC]]> 496 2009-09-13 14:59:52 2009-09-13 21:59:52 open open how-to-manage-your-money-ten-tips-for-regular-people publish 0 0 post _edit_lock 1252879193 _edit_last 2 Reflection: Financial Freedom http://www.ethiopianreview.com/business/498 Sun, 13 Sep 2009 22:00:36 +0000 http://www.ethiopianreview.com/business/?p=498 AC]]> 498 2009-09-13 15:00:36 2009-09-13 22:00:36 open open reflection-financial-freedom publish 0 0 post _edit_lock 1252879237 _edit_last 2 How to Improve Your Powers of Concentration http://www.ethiopianreview.com/business/500 Sun, 13 Sep 2009 22:01:39 +0000 http://www.ethiopianreview.com/business/?p=500 AC]]> 500 2009-09-13 15:01:39 2009-09-13 22:01:39 open open how-to-improve-your-powers-of-concentration publish 0 0 post _edit_lock 1252879483 _edit_last 2 Micromanagement at Work http://www.ethiopianreview.com/business/502 Sun, 13 Sep 2009 22:02:17 +0000 http://www.ethiopianreview.com/business/?p=502 AC]]> 502 2009-09-13 15:02:17 2009-09-13 22:02:17 open open micromanagement-at-work publish 0 0 post _edit_lock 1252879461 _edit_last 2 Chinese Fortune Cookies from Bankers http://www.ethiopianreview.com/business/504 Sun, 13 Sep 2009 22:05:04 +0000 http://www.ethiopianreview.com/business/?p=504 AC]]> 504 2009-09-13 15:05:04 2009-09-13 22:05:04 open open chinese-fortune-cookies-from-bankers publish 0 0 post _edit_lock 1252879505 _edit_last 2 No Credit Check Loans http://www.ethiopianreview.com/business/506 Sun, 13 Sep 2009 22:07:06 +0000 http://www.ethiopianreview.com/business/?p=506 AC]]> 506 2009-09-13 15:07:06 2009-09-13 22:07:06 open open no-credit-check-loans publish 0 0 post _edit_lock 1252879690 _edit_last 2 Teaching Yourself About Money http://www.ethiopianreview.com/business/509 Sun, 13 Sep 2009 22:08:05 +0000 http://www.ethiopianreview.com/business/?p=509 AC]]> 509 2009-09-13 15:08:05 2009-09-13 22:08:05 open open teaching-yourself-about-money publish 0 0 post _edit_lock 1252879687 _edit_last 2 American Businesses: Failure to Apply Sensitivity Analysis? http://www.ethiopianreview.com/business/511 Sun, 13 Sep 2009 22:08:42 +0000 http://www.ethiopianreview.com/business/?p=511 AC]]> 511 2009-09-13 15:08:42 2009-09-13 22:08:42 open open american-businesses-failure-to-apply-sensitivity-analysis publish 0 0 post _edit_lock 1252879723 _edit_last 2 Making Home Affordable http://www.ethiopianreview.com/business/513 Sun, 13 Sep 2009 22:09:53 +0000 http://www.ethiopianreview.com/business/?p=513 AC]]> 513 2009-09-13 15:09:53 2009-09-13 22:09:53 open open making-home-affordable publish 0 0 post _edit_lock 1252879794 _edit_last 2 Made in America? Can We Say that Again in 2010? http://www.ethiopianreview.com/business/515 Sun, 13 Sep 2009 22:10:59 +0000 http://www.ethiopianreview.com/business/?p=515 AC]]> 515 2009-09-13 15:10:59 2009-09-13 22:10:59 open open made-in-america-can-we-say-that-again-in-2010 publish 0 0 post _edit_lock 1252879923 _edit_last 2 Debt Solutions: The Little Things http://www.ethiopianreview.com/business/517 Sun, 13 Sep 2009 22:11:31 +0000 http://www.ethiopianreview.com/business/?p=517 AC]]> 517 2009-09-13 15:11:31 2009-09-13 22:11:31 open open debt-solutions-the-little-things publish 0 0 post _edit_lock 1252879902 _edit_last 2 The Debt Solutions to Live a Debt-free Life http://www.ethiopianreview.com/business/519 Sun, 13 Sep 2009 22:12:15 +0000 http://www.ethiopianreview.com/business/?p=519 AC]]> 519 2009-09-13 15:12:15 2009-09-13 22:12:15 open open the-debt-solutions-to-live-a-debt-free-life publish 0 0 post _edit_lock 1252879937 _edit_last 2 Task Force 151 http://www.ethiopianreview.com/business/522 Sun, 13 Sep 2009 22:13:37 +0000 http://www.ethiopianreview.com/business/?p=522 AC]]> 522 2009-09-13 15:13:37 2009-09-13 22:13:37 open open task-force-151 publish 0 0 post _edit_lock 1252880019 _edit_last 2 Have an Emergency Fund http://www.ethiopianreview.com/business/524 Sun, 13 Sep 2009 22:14:10 +0000 http://www.ethiopianreview.com/business/?p=524 AC]]> 524 2009-09-13 15:14:10 2009-09-13 22:14:10 open open have-an-emergency-fund publish 0 0 post _edit_lock 1252880051 _edit_last 2 4 Keys to a Free Product that Grows Your Mailing List http://www.ethiopianreview.com/business/526 Sun, 13 Sep 2009 22:15:21 +0000 http://www.ethiopianreview.com/business/?p=526 AC]]> 526 2009-09-13 15:15:21 2009-09-13 22:15:21 open open 4-keys-to-a-free-product-that-grows-your-mailing-list publish 0 0 post _edit_lock 1252880121 _edit_last 2 Five Financial Planning Tips for Newbies http://www.ethiopianreview.com/business/528 Sun, 13 Sep 2009 22:15:58 +0000 http://www.ethiopianreview.com/business/?p=528 AC]]> 528 2009-09-13 15:15:58 2009-09-13 22:15:58 open open five-financial-planning-tips-for-newbies publish 0 0 post _edit_lock 1252880159 _edit_last 2 Answers to Some Frequently Asked Questions on Road Privatization http://www.ethiopianreview.com/business/530 Sun, 13 Sep 2009 22:16:53 +0000 http://www.ethiopianreview.com/business/?p=530 This article is part of Issue CCVII of The Rational Argumentator. Access the index of the issue by going to the Resources section. I recently received a series of questions pertaining to my articles, "The Necessity of Road Privatization" and "How to Privatize the Roads." I make my answers available to the public, as I have heard the same questions frequently posed to advocates of turning roads over to free-market competition. Issue: Unavailability of Electronic Technology Question: "You suggested that electronic tolling can be used for private roads, but what if this technology is not available for some countries? If the technology were not in place, would privatization still be desirable?" Answer: Road privatization is desirable no matter what the technological level of the society adopting it. There are several justifications for this: 1) In a private, competitive road market, the requisite technologies for providing easy, convenient access to roads for customers will develop quickly, as entrepreneurs will be motivated by profit to invest in them. After all, if customers must spend a lot of time waiting at toll booths to get on the road, they will take their business elsewhere. 2) At any level of initial technology, it is possible to have superior organizational and logistical methods that maximize user convenience. For instance, if we assume no electronic technology whatsoever and physical cash collection as the only feasible means of obtaining payment, we can still conceive of entrepreneurs having large numbers of toll booths at each checkpoint to ensure that customers can pay quickly and be on their way. Alternatively, entrepreneurs can always charge road users regular membership fees and issue members identification papers that would be checked anytime the user enters the road. It is not always possible, of course, to predict the specific form an organizational innovation will take. However, tens of competing producers, each working under the hard budget constraint of a private enterprise, are much more likely to come up with innovative, efficient solutions than a monopoly producer with a soft budget constraint. 3) Historically, some of the first major roads in the United States - the turnpikes of the late 18th and early 19th centuries - were privately built and operated, in an era long before today's advanced technology. The roads functioned quite well for their time, facilitating inter-state commerce and the westward migration of large numbers of settlers. Private roads have existed with much more primitive technology than is available anywhere today, and so there is no reason to suppose that a given technological level is required for them to be viable. Technology certainly improves quality in this area, as in virtually all others, but the laws of economics function in a society of any level of advancement. Issue: Different Ownership and Different Rules Question: "If every road is owned by different people and different rules are imposed, would it not be too confusing?" - by G. Stolyarov II | AC]]> 530 2009-09-13 15:16:53 2009-09-13 22:16:53 open open answers-to-some-frequently-asked-questions-on-road-privatization publish 0 0 post _edit_lock 1252880214 _edit_last 2 Wall Street Journal Subscription for Less http://www.ethiopianreview.com/business/532 Sun, 13 Sep 2009 22:17:45 +0000 http://www.ethiopianreview.com/business/?p=532 Wall Street Journal coupons - by brandi yates | AC]]> 532 2009-09-13 15:17:45 2009-09-13 22:17:45 open open wall-street-journal-subscription-for-less publish 0 0 post _edit_lock 1252880266 _edit_last 2 Running a Restaurant During the Recession http://www.ethiopianreview.com/business/534 Sun, 13 Sep 2009 22:18:24 +0000 http://www.ethiopianreview.com/business/?p=534 AC]]> 534 2009-09-13 15:18:24 2009-09-13 22:18:24 open open running-a-restaurant-during-the-recession publish 0 0 post _edit_lock 1252880305 _edit_last 2 How to Keep a Business Alive in the Market During Recession http://www.ethiopianreview.com/business/536 Sun, 13 Sep 2009 22:19:19 +0000 http://www.ethiopianreview.com/business/?p=536 AC]]> 536 2009-09-13 15:19:19 2009-09-13 22:19:19 open open how-to-keep-a-business-alive-in-the-market-during-recession publish 0 0 post _edit_lock 1252880360 _edit_last 2 Save Money on Your Cell Phone Bill http://www.ethiopianreview.com/business/538 Sun, 13 Sep 2009 22:20:04 +0000 http://www.ethiopianreview.com/business/?p=538 AC]]> 538 2009-09-13 15:20:04 2009-09-13 22:20:04 open open save-money-on-your-cell-phone-bill publish 0 0 post _edit_lock 1252880405 _edit_last 2 How to Save on Dental Costs http://www.ethiopianreview.com/business/540 Sun, 13 Sep 2009 22:20:44 +0000 http://www.ethiopianreview.com/business/?p=540 AC]]> 540 2009-09-13 15:20:44 2009-09-13 22:20:44 open open how-to-save-on-dental-costs publish 0 0 post _edit_lock 1252880445 _edit_last 2 How to Make Extra Money Online http://www.ethiopianreview.com/business/542 Sun, 13 Sep 2009 22:21:17 +0000 http://www.ethiopianreview.com/business/?p=542 AC]]> 542 2009-09-13 15:21:17 2009-09-13 22:21:17 open open how-to-make-extra-money-online publish 0 0 post _edit_lock 1252880478 _edit_last 2 Still in slump, Spain explores solutions to economic crisis http://www.ethiopianreview.com/business/544 Sun, 13 Sep 2009 22:22:55 +0000 http://www.ethiopianreview.com/business/?p=544 DW]]> 544 2009-09-13 15:22:55 2009-09-13 22:22:55 open open still-in-slump-spain-explores-solutions-to-economic-crisis publish 0 0 post _edit_lock 1252880641 _edit_last 2 AMD simplifies the PC-buying process, we compare Facebook and Facebook Lite, and more http://www.ethiopianreview.com/business/546 Sun, 13 Sep 2009 22:24:12 +0000 http://www.ethiopianreview.com/business/?p=546 Here’s a rundown of what happened in the last week of tech and business news. First up, the five most popular stories VentureBeat published in the last seven days. Despite all the speculation about Apple’s big event on Wednesday, it was our coverage of announcements from chip company AMD that interested the most readers: Chip company AMD aims to simplify arcane PC-buying business — “Chip makers love to give their products arcane numbers and incomprehensible names. But this makes computer buying way too confusing for average people. Now Advanced Micro Devices says it’s going to simplify the process.” Steve Jobs is going after the game market — “Apple chief executive Steve Jobs emphasized that Apple was going after the video game market, particularly with its iPod Touch gadget. That explains why there’s no camera in the iPod Touch.” New AMD graphics chip can power six monitors at once — “On board an old World War II aircraft carrier, Advanced Micro Devices executives introduced new graphics chips meant to give consumers a killer entertainment experience and deliver a big blow to rivals Nvidia and Intel. The chip maker introduced a new generation of ATI graphics chips that will be part of desktops this fall and laptops early next year.” Launching a start-up and having a family life: It’s possible! — “Raising our kids and being an entrepreneur wasn’t easy. Being in a startup and having a successful relationship and family was very hard work.” How many vendors does it take to Microsoft’s Project Natal game control system? — “Microsoft took the wraps off its Project Natal — the controllerless, gesture-based game play system for the Xbox 360 — at the E3 show in June. But it never explained exactly how it was pulling off the image-recognition technology behind it.” And here are five more stories that we thought were important, thought-provoking, or just fun: Facebook Lite versus Facebook - how do they differ? — “Facebook today rolled out a very spare version of itself in the United States called Facebook Lite. … Let’s compare.” Beatles or no Beatles? Apple rumor rundown for tomorrow’s event — “What else could Steve Jobs possibly be hiding just out of sight for tomorrow? Here’s the hot list of probable products, in decreasing order of believability.” [Oh, and here's a rundown of what Jobs actually announced at Apple's event.] Outspark snares former Electronic Arts executive as CEO — “The brain drain from the old guard to the new continues in the video game business. Online game publisher Outspark is announcing it has hired former Electronic Arts executive Owen Mahoney as its chief executive today.” WorkScore launches a professional network where recommendations actually mean something — “The web is littered with a ridiculous number of professional networking sites, yet none that I find particularly useful. … Now an Oakland, Calif., startup called Reputation Networks is launching a site called WorkScore that sounds pretty close to what I’m looking for.” Obama’s “green jobs” advisor Van Jones resigns under attack from right-wing — “Van Jones, an activist and ‘green jobs’ advisor to President Obama respected by many for his work in pushing for environmental justice in low-income neighborhoods, has resigned after controversy over statements and actions that enraged the Republican right-wing.” - By Anthony Ha | VentureBeat ]]> 546 2009-09-13 15:24:12 2009-09-13 22:24:12 open open amd-simplifies-the-pc-buying-process-we-compare-facebook-and-facebook-lite-and-more publish 0 0 post _edit_lock 1252880715 _edit_last 2 Photo site Shutterfly goes mobile http://www.ethiopianreview.com/business/548 Sun, 13 Sep 2009 22:25:31 +0000 http://www.ethiopianreview.com/business/?p=548 Shutterfly, a company that lets you create photo albums online, has acquired mobile photo-sharing company Tiny Pictures for $1.3 million. Shutterfly will expand its mobile offerings by using Tiny Pictures’ expertise in mobile, according to John Poisson, chief executive of Tiny Pictures, who confirmed the acquisition in an interview this morning. The deal is a loss for investors, who had pumped in a whopping $12.2 million into the company, and suggests Tiny Pictures was unable to gain any significant traction. It faced scores, if not hundreds, of other photo sharing sites that flooded the Web in recent years, and so the odds it would produce the returns expected by its investors were very low. Tiny Pictures runs a mobile site called Radar.net that lets users upload photos to pretty much any phone, and lets other users comment on them. Radar has an iPhone application that lets you do things like pull your Flickr photos into your Radar photo-stream. Radar enjoyed favorable reviews, but with Facebook emerging as a dominant photo sharing site online, its future looked rough as a stand alone site. Shutterfly apparently wants to apply some of these social media features to its own service. Poisson wouldn’t comment on whether the Radar site would keep running, or be shut down. He said to “expect a new product release from us,” suggesting it would be soon, but he provided no specifics on timing. He also wouldn’t comment on the number of users Radar has. The acquisition also includes a $1.3 million earnout for the nine-person team at Tiny Pictures, thus providing an incentive to the team to keep working at Shutterfly even if the deal is a complete wash for investors. Tiny Pictures had raised its money from Draper Fisher Jurvetson and Mohr Davidow Ventures. Still, Poisson said he and his team are excited about joining Shutterfly, which he called a visionary company, and great fit for Tiny Pictures. Tiny Pictures was founded four years ago, and was experimenting early with things like real-time browsing, commenting and social “whispers.” - By Matt Marshall | VentureBeat]]> 548 2009-09-13 15:25:31 2009-09-13 22:25:31 open open photo-site-shutterfly-goes-mobile publish 0 0 post _edit_lock 1252880732 _edit_last 2 Broadcasters lambaste FCC PRA play http://www.ethiopianreview.com/business/550 Sun, 13 Sep 2009 22:26:35 +0000 http://www.ethiopianreview.com/business/?p=550 Radio Business Report]]> 550 2009-09-13 15:26:35 2009-09-13 22:26:35 open open broadcasters-lambaste-fcc-pra-play publish 0 0 post _edit_lock 1252880796 _edit_last 2 A debt payoff plan that works http://www.ethiopianreview.com/business/552 Sun, 13 Sep 2009 22:28:36 +0000 http://www.ethiopianreview.com/business/?p=552 MSN Money]]> 552 2009-09-13 15:28:36 2009-09-13 22:28:36 open open a-debt-payoff-plan-that-works publish 0 0 post _edit_lock 1252880983 _edit_last 2 234 93.85.228.63 2009-10-03 13:36:31 2009-10-03 20:36:31 Debt settlement online]]> 0 0 0 2368 67.164.208.132 2009-11-06 00:24:53 2009-11-06 07:24:53 How Credit Works. It's so important to know all the choices one has to get out of debt! What you've listed above are essentially Accelerated Debt Relief plans. They work well, if there is no hardship involved. If there is, here are six steps to Get Out of Debt: Six-Steps to Make Your Best Choice for getting out of debt. They work!]]> 0 0 0 1370 93.85.100.243 2009-10-10 18:59:42 2009-10-11 01:59:42 0 0 0 1395 93.85.231.164 2009-10-13 08:16:53 2009-10-13 15:16:53 0 0 0 1649 82.209.255.244 2009-10-15 17:16:58 2009-10-16 00:16:58 0 0 0 Stocks enjoy best week since July http://www.ethiopianreview.com/business/554 Sun, 13 Sep 2009 22:29:32 +0000 http://www.ethiopianreview.com/business/?p=554 MSN]]> 554 2009-09-13 15:29:32 2009-09-13 22:29:32 open open stocks-enjoy-best-week-since-july publish 0 0 post _edit_lock 1252880972 _edit_last 2 Falling oil trips up stocks http://www.ethiopianreview.com/business/556 Sun, 13 Sep 2009 22:30:15 +0000 http://www.ethiopianreview.com/business/?p=556 MSN Money ]]> 556 2009-09-13 15:30:15 2009-09-13 22:30:15 open open falling-oil-trips-up-stocks publish 0 0 post _edit_lock 1252881139 _edit_last 2 Rich getting poorer as income gap shrinks http://www.ethiopianreview.com/business/558 Sun, 13 Sep 2009 22:32:53 +0000 http://www.ethiopianreview.com/business/?p=558 A Chinese laundry in Hoboken The leveling of incomes is no abstraction to people like Anthony Carmenate, a son of Cuban immigrants who worked his way from a boyhood job at a Chinese laundry in Hoboken, N.J., to the top ranks of Bank of America's asset-management business. After graduating from Montclair State University in New Jersey, where he paid his way by tending bar, Carmenate got a job at a call center for Alliance Capital, a predecessor of AllianceBernstein. He sold mutual funds to brokers and rose to become head of U.S. product management. In 2003, Bank of America (BAC, news, msgs) recruited him to help manage a new unit called Banc of America Capital Management. He bought a five-bedroom colonial home in the Boston suburb of Natick. His wife, Angela, managed the home and raised the couple's three children. The Carmenates didn't consider themselves big spenders, but, with an income of more than $500,000 a year, they began to splurge. She bought Coach handbags and designer shoes. He bought a BMW and Land Rover. When they took their kids to Disneyland or the Jersey shore, they sometimes paid to bring along a baby sitter. This spring, the 42-year-old Carmenate was laid off, and he has struggled to find a job at anywhere near his former pay. He meets with ex-colleagues, calls headhunters and taps his personal network, but, with banks wiping out layers of management, he says, "whenever I get a lead, I find that there is a sea of people like me applying for the same one." He has started to do some consulting work. "I'm an optimistic guy," he says. "But salaries like mine aren't likely to come back anytime soon. It's simple: Wall Street doesn't need as many people as it used to." Although nine large banks gave million-dollar bonuses to nearly 5,000 individuals last year, according to a July report by New York's attorney general, the report also showed that the banks' total pay and benefits declined nearly 11% from 2007. The country has seen large shifts in income distribution before. In the 1930s, top earners were battered by the bursting of the financial markets, and New Deal regulation and taxes helped narrow the gap further. The top 1% of U.S. families had 23.9% of pretax income the year before the crash of 1929. By the time World War II ended, that group's share was less than 13%, where it stayed for about 35 years, professors Saez and Piketty calculate. Starting around 1980, a mix of deregulation, technological change and globalization produced larger markets and fatter payouts at the top. Median CEO pay at large companies rose by a factor of six between 1980 and 2005, after accounting for inflation, say economists Carola Frydman of the Massachusetts Institute of Technology and Raven Saks of the Federal Reserve. By 2007, the top 1%'s share of income had swollen to about as high as it was before the 1929 crash. The gains at the top didn't necessarily come at the expense of others, because the economy expanded greatly after 1980, letting incomes grow across the spectrum. But those at the top end rose more rapidly. In 1980, for instance, the income of the top 5% of households was 2.86 times median incomes; by 2007, it was 3.52 times the median. In other words, the gap widened by 23%, census data show. At the same time, the amount of mobility up and down the American income ladder has remained largely unchanged over the years, according to most academics who have studied the issue. The rate has been relatively unchanged since 1969, says the Pew Charitable Trust. Among the factors putting pressure on incomes at the top now is a shift in the political winds in Washington. Tax changes pushed by President George W. Bush after the 2001 recession reduced income taxes disproportionately on wealthier Americans. President Barack Obama, by contrast, campaigned on a pledge to use the tax code to reduce inequality, and he hopes to limit the Wall Street risk taking that fed huge paydays. The White House and Congress are taking aim at executive compensation, with a federal pay czar scrutinizing compensation at some companies in which the government invested. White House economist Austan Goolsbee says that "this isn't Robin Hood. The president's policy is not about trying to prevent incomes from growing in the top 1%." The administration also argues that higher tax rates on wealthier Americans would pay for needed investments. Pressure on pay at the top extends well beyond finance. At law firms, billings ballooned earlier this decade, and law-firm salaries accounted for 1.5% of all U.S. salaries in 2007, twice the share in 1980, according to Economy.com. The firm expects this to fall to 1% in 2018. Darren Tucker, a 36-year-old antitrust attorney in Washington, was rising at O'Melveny & Myers, earning about $400,000 last year as a "counsel." That was one rung below partner, where annual payouts average about $1.5 million. But earlier this year, his boss told him he shouldn't expect to make partner anytime soon, in part because business was slowing. Having already seen a round of layoffs, he leapt at a chance for a job at the Federal Trade Commission paying $153,000. "What was keeping me at O'Melveny & Myers was the big salary to come," Tucker says. His former boss at the firm, Richard Parker, says he helped Tucker land the FTC job and praises his legal skills. Tucker and his wife have been spending $100,000 a year for treatment for their two children, who he says were diagnosed as autistic. With the job shift, says his wife, Anne, they have moved one child, who has greatly improved, into public school. For the first time in years, she is looking for a job, as a substitute teacher. The wealth boom of the past decade was also fueled by entrepreneurs and family companies -- beneficiaries of easy credit, economic growth and rising asset values. Many of them, too, are taking a hit. A world away from Wall Street A world away from Wall Street, McDaniel, whose family owns the Hilldrup moving-and-storage company in Stafford, Va., is used to luxuries. "I like to be well-treated," he says. He has hopscotched to high-priced vacations in five-star hotels: skiing in Colorado in winter, snorkeling in the Caribbean in the spring and fly-fishing in Wyoming or Montana in the summer. The burly McDaniel, a 45-year-old former University of Virginia linebacker, is also a regular, with his teenage son, at Super Bowls and sometimes charters planes for East Coast trips. He drives an Audi A8 L, a model that starts at about $75,000. When the economy is humming, "psychologically you're on a high, and the business supports that high," he says. This year, McDaniel worries that the family company's revenue of about $100 million may drop by 20%. To cut costs, he is turning salaried drivers and packers into independent contractors, paid by the move. For those still on salary, he is freezing pay and suspending 401k contributions. This summer he rented a house on a North Carolina beach rather than jetting to Jackson Hole, Wyo. Among those sharing in the income setback at the top will be the charities to which McDaniel gives. "If my business is off 20%, my salary may be off 20%, so my charitable giving should be off 20% too," he says. - by Bob Davis and Robert Frank | WSJ]]> 558 2009-09-13 15:32:53 2009-09-13 22:32:53 open open rich-getting-poorer-as-income-gap-shrinks publish 0 0 post _edit_lock 1252881242 _edit_last 2 A rare opportunity in mining stocks http://www.ethiopianreview.com/business/560 Sun, 13 Sep 2009 22:34:47 +0000 http://www.ethiopianreview.com/business/?p=560 A little goes a long way Adding a bit of one of the 17 rare-earth elements to a magnet in the engine of an electric or hybrid car increases the power and efficiency of the engine, because rare-earth magnets are the strongest type of permanent magnets now made. Rare earths -- Nos. 57 to 71 on the periodic table of elements -- improve the color in TV screens and in lasers. You'll also find rare-earth elements in tunable microwave resonators, and terbium, No. 65, is a key ingredient in low-energy light bulbs. And we're not talking about trace amounts of these elements either. The electric motor in a Toyota Prius uses about 2 pounds of neodymium in its permanent magnets. Each Prius battery also uses 20 to 30 pounds of another rare-earth element, lanthanum. Because the magnets in wind turbines are so huge -- you need big magnets to maximize the amount of electricity generated from each revolution of the relatively slow-moving blades -- these generators need large amounts of rare-earth elements. It takes about a ton of neodymium for every megawatt of generating capacity from wind turbines. Fortunately, despite their name, rare-earth elements aren't especially rare. They're found in relatively high concentrations in the Earth's crust. One, cerium, is the 25th-most-abundant element in the crust. Global production came to about 140,000 metric tons of refined rare earths in 2008. Compare that with projected lithium production of 11,000 metric tons by 2012. But supplies of the rare earths that can be profitably mined aren't distributed evenly across the globe. Partly, that's the luck of the geologic draw. But mostly, it's a function of the huge environmental costs of mining these rare earths. The traditional method has been to bore holes into promising rock formations, pump acid down the holes to dissolve some of the rare earths and then pump the slurry into holding ponds for extraction of the rare earths. That extraction leaves behind a lake of water mixed with acid and various and sundry dissolved minerals. Mom-and-pop mining It's much, much cheaper if a company can get away with spending just about nothing on controlling and treating the resulting sludge. The world's low-cost producers of rare-earth elements are not huge and efficient open-pit mines but small, completely unregulated mom-and-pop mining companies in China. The Chinese government is trying to force many of these companies out of business. The motive is a combination of desire to limit environmental damage in China and to exercise greater control over exports. I'd say the latter dominates. Over the past 20 years, the accidents of geology and the realities of unequal regulation gradually led to the closure of most of the rare-earth mines outside China. The world's richest proven reserve of rare earths, a mine in Mountain Pass, Calif., stopped production in 2002, for example. But rising demand is starting to change that picture. Companies such as Lynas (LYSCY, news, msgs) and Arafura Resources (ARAFF, news, msgs) in Australia, Avalon Rare Metals (AVARF, news, msgs), Great Western Minerals Group and Ucore Uranium in Canada, and Molycorp Minerals in the U.S. have crept back onto the stage with plans to start mines or resume production at old mines. It took the Chinese overplaying their hand, however, to turn that modest trend into a speculator's dream come true. The Chinese, remember, control about 95% of global production for all rare earths. They also control about 99% of the production for rare-earth metals, such as dysprosium and terbium, and 95% of neodymium. Recently, China started to reduce the amount of rare-earth metals that could be exported, and this year the plan is to reduce exports further. The Chinese Ministry of Industry and Information Technology has cut authorized production targets this year by an additional 8.1%. Companies outside China face the very real possibility not only of paying higher prices but of not being able to buy the raw materials they need at all. Forcing relocation This seems to be a key goal in China's strategy. By restricting exports, China would force high-technology companies that need these rare earths to relocate production to China -- accelerating the transfer of intellectual property to Chinese companies. It's no secret that China wants to create major wind, solar and hybrid-car industries. That's made it possible once again to raise money to start or restart a rare-earth mine outside China. For example, Chevron (CVX, news, msgs) sold Molycorp Minerals, which it had acquired when it bought Unocal, to a group of private investors that included Goldman Sachs (GS, news, msgs) in 2008. Molycorp will need Goldman's deep pockets, since it has to drain 95 million gallons of water out of the open-pit mine in Mountain Pass and then strip away tons of rock before it can begin mining in 2012. Initially, Molycorp will process 1,000 tons of ore a day -- enough, the company estimates, to produce 20,000 metric tons of rare-earth oxides annually. In Australia, Lynas and Arafura were relatively close to production until the global economic crisis pulled the financial rug out from under them. A planned bond offering by Lynas failed, and Arafura raised less money than it had hoped in its initial public offering. The Chinese stepped into the gap, buying 25% of Arafura and offering to buy 51.7% of Lynas. That second offer, which would give the Chinese majority control, has sent Australia into a frenzy, coming as it does on the heels of the detention in China of four staffers from miner Rio Tinto (RTP, news, msgs) on charges of stealing state secrets. The Australian government has until Sept. 17 to rule on the bid. Elsewhere, Ucore Uranium is at work on a project in Alaska, and Great Western Minerals is working to refurbish the Steenkampskraal mine in South Africa. Caution advised Be very careful when you evaluate any of these highly speculative stocks. Great Western Minerals submitted its application to update the mine's paperwork only in April, and it is still updating its feasibility study. The risk is very real that some of these projects will never get to actual production. Why bother? Because Chinese production is projected to reach 160,000 metric tons a year by 2015 or so. That would be up from 139,000 tons in 2008. But global demand is projected to rise even faster, resulting in an annual shortfall of 40,000 tons by 2015. The two companies that I'd be most interested in watching are Molycorp, should it ever go from a private to a public company, and Lynas. Molycorp's Mountain Pass mine is a huge proven reserve, and the group of private investors is solid. And I'll keep an eye on Lynas, provided the deal with China is for something less than majority control. - By Jim Jubak | MSN]]> 560 2009-09-13 15:34:47 2009-09-13 22:34:47 open open a-rare-opportunity-in-mining-stocks publish 0 0 post _edit_lock 1252881288 _edit_last 2 The best Vanguard funds for a 401k http://www.ethiopianreview.com/business/562 Sun, 13 Sep 2009 22:37:16 +0000 http://www.ethiopianreview.com/business/?p=562 You can't go wrong with Primecap I strongly believe you should have a substantial portion of your 401k money in growth funds, and my first choice is a trio of Vanguard funds run by the redoubtable team at Primecap Management: Primecap (VPMCX), Primecap Core (VPCCX) and Capital Opportunity (VHCOX). Though all three funds are now closed to new investors outside of established 401k plans, they may be available to you. If so, consider yourself lucky, and don't hesitate to give a big slug of money to this group of managers who take a value-oriented eye to buying growth stocks. Their funds are the largest single component of my retirement and nonretirement accounts, as well as those of my wife and kids. Vanguard Wellington If you don't have access to any of the Primecap funds, Vanguard Wellington (VWELX) is a terrific fund to have in your 401k as the core fund around which you build the rest of your 401k portfolio. Because Wellington is a balanced fund, approximately 60% of its assets are in high-quality blue-chip stocks, and 30% to 40% are in top-notch investment-grade government and corporate bonds. You can easily get the entire bond exposure you need in your 401k portfolio from this fund. What I like most about Wellington is its excellent management team. The fund also has the flexibility to invest as much as 20% of its equity assets in foreign securities, a good place to be right now. Plus, by investing in Wellington through your 401k, you can avoid the hefty $10,000 minimum initial investment required to get into Wellington on your own. If you decide to follow this strategy, I'd suggest putting about 40% of your money in Wellington, 40% in a good midcap stock fund and 20% in the international funds I recommend. See my picks on the next page. The best Vanguard midcap funds My favorite Vanguard midcap funds are the Vanguard Capital Opportunity fund and the Vanguard Selected Value (VASVX) fund, though I don't think many 401k plans hold them. You could ask for them or simply go with an index duo: Vanguard Mid-Cap Growth Index (VMGIX) and Vanguard Mid-Cap Value Index (VMVIX). Of course, holding an equal weighting in these two index funds would be the same as investing in the broader Vanguard Mid-Cap Index (VIMSX), but having the two funds allows you to adjust your midcap assets to lean more heavily toward the growth or value side, depending on what's happening in the market. Right now, for example, you'd want to overweight the growth side of the ledger. The financial stocks that are a heavy component in the value index fund have had a healthy run of late, as have the tech stocks in the growth fund. But there's a better chance that tech stocks will continue to gain momentum in the economic recovery, while the banks will tread water until economic skies are clearer. Best Vanguard international funds I recommend you have 10% to 15% of your 401k in international funds, and Vanguard has some stellar choices. Vanguard International Growth (VWIGX) is likely to be one of your 401k offerings, and it's a fine fund to own. With three managers, International Growth still holds just 170 stocks or so, and close to 20% of its assets are in the top 10 stocks. That's the kind of concentration I like. The managers also aren't afraid to invest in emerging markets, something you don't always find in more-plain-vanilla offerings. As I said before, you'll want to spice your foreign holdings with some of the Vanguard Emerging Markets Index fund, and it's worth your while to demand your 401k administrator give you access to this fund. Globally, emerging economies are showing increased economic firepower, hungry consumers and the ability to take advantage of newly aggressive importers, exporters, manufacturers and entrepreneurs. Emerging Markets Index will give you nice exposure to one of the most powerful investment markets out there -- China -- with about 20% of its assets in this economic powerhouse. In addition, Emerging Markets has investments in Brazil (15%), Korea (13%) and Taiwan (12%). I'd also like to see you have some exposure to foreign small caps. Vanguard FTSE All-World ex-US Small-Cap Index (VFSVX) is a new Vanguard fund that invests in small-cap non-U.S. stocks. This fund tracks an FTSE benchmark of more than 3,000 stocks, and it will give you excellent exposure to this sector of the market. Best Vanguard bond funds If you own Wellington in your 401k, you already have exposure to high-quality corporate and government bonds, so you don't need to diversify into another bond fund in your 401k. But if not, put about 10% of your 401k money in Vanguard Short-Term Investment-Grade Bond Fund (VFSTX). This fund invests at least 80% of its assets in "investment-grade" or better short- and intermediate-term bonds, and that has been a good place to be lately. As banks have pulled in their lending, corporate bond issuance worldwide has gone through the roof. This fund has performed well this year and should continue to do so down the road. Vanguard's Intermediate-Term Investment-Grade Bond Fund (VFICX) is also a good choice, but it will be a bit more volatile when interest rates begin to rise. Putting it all together If you are able to invest in any of the Vanguard Primecap-managed funds, put most of your equity money there. If not, start with Wellington. Round out your equity holdings with Vanguard Mid-Cap Growth and Vanguard Mid-Cap Value, overweighting in one or the other depending on what's happening in the market. You'll want 10% to 15% of your 401k money in international funds, including Vanguard International Growth, Vanguard Emerging Markets Index and Vanguard World ex-US Small-Cap Index. And if you don't have a balanced fund like Wellington, which already owns bonds, put 10% of your 401k money in Vanguard Short-Term Investment-Grade Bond Fund or Vanguard Intermediate-Term Investment-Grade Bond Fund. The chart below gives you the starting point I'd recommend, naming key funds and their focus areas. If you don't have all the choices (or, I suppose, Vanguard at all), the focus areas might still give you some guidance. Remember, it's your retirement. So make sure your 401k plan is designed to help you, not your benefits manager. - By Dan Wiener | InvestorPlace]]> 562 2009-09-13 15:37:16 2009-09-13 22:37:16 open open the-best-vanguard-funds-for-a-401k publish 0 0 post _edit_lock 1252882149 _edit_last 2 Lowest-paid workers get ripped off http://www.ethiopianreview.com/business/564 Sun, 13 Sep 2009 22:39:19 +0000 http://www.ethiopianreview.com/business/?p=564 Illegal immigrants have little leverage The study's authors argue that "the best inoculation against workplace violations is ensuring that workers know their rights, have full status under the law to assert them, have access to sufficient legal resources, and do not fear retaliation." This is, they point out, a near impossibility for unauthorized immigrant workers. "Any policy initiative to reduce workplace violations must prioritize equal protection and equal status in national immigration reform, and ensure status-blind enforcement of employment and labor laws," they wrote. In the existing labor market, employers who hire illegal immigrants benefit from an unnatural balance of power, since undocumented workers have little leverage with employers who violate the regulations of the formal labor market, says Will Wilkinson of the Cato Institute. He believes there needs to be much greater integration in the labor market in North America and policies that give undocumented immigrants the status to live and work here. Complain and you're fired According to The New York Times, Labor Secretary Hilda Solis said her department was hiring 250 additional wage-and-hour inspectors. But greater enforcement of the existing workplace standards could complicate the route to employment for many illegal immigrants because they often rely on jobs that are below minimum wage as entry points in the U.S. job market and use those jobs to gain the skills to reach higher pay levels, Wilkinson says. Milkman tells of interviewing a hotel worker whose supervisor would enter hotel rooms before her and take the tips that had been left for her. The worker also was required to work more hours than she was paid for. When she complained, she was essentially fired -- told her services were no longer needed. - by Liz Wolgemuth | USN]]> 564 2009-09-13 15:39:19 2009-09-13 22:39:19 open open lowest-paid-workers-get-ripped-off publish 0 0 post _edit_lock 1252881561 _edit_last 2 Pay with a wave of your hand? http://www.ethiopianreview.com/business/566 Sun, 13 Sep 2009 22:41:22 +0000 http://www.ethiopianreview.com/business/?p=566 How RFID devices work The RFID technology is un-yucky, however. The implanted tag -- a passive RFID device consisting of a miniature antenna and chip containing a 16-digit identification number -- is scanned by an RFID reader. Once verified, the number is used to unlock a database file, be it a medical record or payment information. Depending upon the application, a reader may verify tags at a distance of 4 inches up to about 30 feet. The RFID implant has been around for more than 20 years. In its earliest iteration, it provided a convenient way to keep track of dogs, cats and prized racehorses. Few took note or voiced much concern. Then, in 2002, Applied Digital Solutions (now Digital Angel) of Delray Beach, Fla., deployed to its foreign distributors a beta version of its patented VeriChip technology for human use. Two years later, the VeriChip became the first subcutaneous RFID chip to receive FDA approval as a Class 2 medical device. One VeriChip distributor in Spain sold the concept to the ultratrendy Baja Beach Club, which offered its patrons in Barcelona and Amsterdam the option of having an implant inserted in their upper arms to pay for their drinks without having to carry wallets in their swimsuits. Judging by the ensuing outrage, you would think VeriChip had given the pope a wedgie. 'Mark of the beast'? Web sites sprouted like mushrooms, accusing VeriChip of being the biblical "mark of the beast" predicted in the Book of Revelations as a foreshadowing of the end of the world. CEO Scott Silverman was equally vilified as being tied to Satan or, worse, Wall Street. Big Brother was surely coming, though he'd have to get pretty close to read your implant. Claims that the tags cause cancer based on lab rat tests upped the amps of outrage. Were people suddenly curious about RFID implants? "Curiosity is probably an understatement," Silverman concedes. "People have always taken interest in VeriChip. Part of the lore and part of the trouble of this company over the past five years has been just that." Though VeriChip played no part in using its implant as a payment device, the company quickly moved to calmer waters. Today, it markets its VeriMed Health Link patient identification system to help hospitals treat noncommunicative patients in an emergency. Its future may include more advanced medical applications, including a biosensor system to detect glucose levels. "A lot of the negative press that we received was a direct result of people having a misconception of what this technology is all about," says Silverman. "We believe that the medical application was and still is the best application for this technology. "That said, if and when it does become mainstream and more patients are utilizing it for their medical records or for diagnostic purposes, if they want to elect to use it for other applications, certainly they'll be able to do that. But it's going to take a company much larger than us to distribute the retail reader end of it into the Wal-Marts of the world." Versatile's Jette has watched contactless RFID battle for acceptance in the credit card arena. Just as Silverman suggests, the dynamics and scale of the payment industry tends to work against widespread deployment. "Mobil Speedpass tried to do it; they got some traction and decided to see if there was any mileage to take this to a Walgreens or McDonald's. You used to be able to use your Speedpass at McDonalds, but that ended because, at the end of the day, you still only have two gigantic payment processors out there, Visa and MasterCard," he says. "To me, the idea of any kind of payment device having ubiquity requires an awful lot of back-end cooperation, of people willing to say, 'I don't need my brand in the customer's wallet.'" Become a fan of MSN Money on Facebook Although the coolness factor is effective from a marketing standpoint -- American Express Blue with its smart (if largely unused) chip is a good example -- Jette says most cardholders would balk at the very thought of a needle. "With the implanting in the nightclubs, there is a cache of exclusivity there, especially among a certain demographic where people are piercing themselves and getting tattoos. But those are things that really only 20-somethings do a lot. I really doubt that there will be any market for injectable RFID tags or even any single point-of-sale payment device." "A lot of times, the technology is a solution looking for a problem. Sometimes people fall in love with the technology for its own sake and then try to evangelize a home for it. My business group is just smart cards, and I never forget that although we make money with smart cards, the bills are paid with mag stripe cards. As backwards and old-fashioned as they are, that is still the bulk of what the transactions are going to be in America for a very long time." - by Jay MacDonald | CreditCards.com]]> 566 2009-09-13 15:41:22 2009-09-13 22:41:22 open open pay-with-a-wave-of-your-hand publish 0 0 post _edit_lock 1252881683 _edit_last 2 11 ways to graduate with less debt http://www.ethiopianreview.com/business/568 Sun, 13 Sep 2009 22:44:16 +0000 http://www.ethiopianreview.com/business/?p=568 Control your costs 1. Stick to a four-year plan. According to UCLA's Higher Education Research Institute, only 28% of students at public universities graduate in four years. When college classes drag past the traditional eight semesters, debt piles up. The rates vary wildly: 71% of students at the University of North Carolina at Chapel Hill exit on time, but only 46% of undergrads at the University of Wisconsin-Madison do. At San Diego State University, less than 20% of students graduate in four years. College administrators tend to blame students for dawdling, but low graduation rates also can mean students can't register for the classes they need because of overcrowding. If you're interested in schools with pitiful grad rates, ask the school how some students manage to beat the odds. Avoiding universities with lousy graduation rates will be far more beneficial than working extra shifts at Baskin-Robbins. You can find schools with higher four-year grad rates at College Results Online. Also see "The 50 best values in public colleges" and "The best values in private colleges." 2. Get a campus job that really pays. At most colleges, it's still not too tough to find a campus job. If you want a job that can seriously boost your chances of graduating debt-free, however, consider applying to be a resident assistant. Many RAs get their room and board free, which at plenty of schools can outstrip tuition costs. At UCLA, for instance, the tuition and fees for 2009-10 are about $8,300, but room and board is the biggest-ticket item, about $13,300. With the recession hitting universities, ask about the availability of campus jobs when evaluating schools. 3. Get responsible now! Start showing some restraint on what you buy, and give budgeting a whirl. "Most teenagers today have been given a lot by their parents, and now is the time to get realistic about what it's like to manage their own money," says Gerri Detweiler, the credit adviser at Credit.com, a personal finance Web site. Use credit wisely If you're a college student, it's going to become a lot harder to party with plastic. Beginning on Feb. 22, 2010, credit card issuers won't be able to give consumers younger than 21 a card unless a parent, guardian or spouse co-signs the application. The only way that young college students can dodge this crackdown is if they provide proof that they have the financial means to repay their debt. And that's not the only restriction. Full-time college students will have access only to credit that doesn't exceed $500 or 20% of their income each year. (See "Under 21? No credit card for you.") While this may not seem fair, Congress is trying to protect students from making bad credit decisions on campus quadrangles across the country. For years, card issuers have paid universities millions of dollars for the right to ply their students with free gifts, says Daniel Ray, the editor-in-chief of CreditCards.com. One result: More than half of current college students have at least four credit cards, according to a recent study by student lender Sallie Mae. A typical student carries a balance of nearly $3,200; by graduation, one out of five card-carrying students owes more than $7,000. That's no way to start a career. 4. Cool your jets. You may feel all grown up, but credit experts say it's absolutely OK to wait until you're a college senior to obtain a credit card. You won't need a credit history until then, and you'll stay out of trouble longer. 5. Use a debit card. You'll get lots of practice acting financially responsible if you pay as you go. Relying on a debit card that's linked to a free or inexpensive student checking/savings account will provide excellent financial training wheels. (You won't be alone either: See "Will debit cards outstrip credit?") 6. Check credit unions. If you do apply for a card before Feb. 22, skip the master marketers and apply for a card through a staid credit union instead. "Credit unions rarely engage in the kind of pricing abuses that we've seen with major credit cards," Detweiler says. "They may raise interest rates, but they rarely increase rates for no reason." 7. Freeze your plastic. No, this isn't a joke, Ray insists. "Take your credit card and put it in a bowl of water and freeze it," he says. "That limits the access to the card for impulse buys." Don't worry; the card is indestructible -- mostly. Be a smart borrower 8. Be realistic about borrowing. This might seem harsh, but a dance major's earnings potential most likely won't be as high as that of a finance major. Mark Kantrowitz, the founder of FinAid, recommends that students limit their borrowing to no more than what they will typically earn during their initial year in the work force. This might not seem realistic, but keep in mind that the average tuition for a state university is less than $6,600 a year for someone who lives at home. Throw in room and board and the price rises to $14,333. 9. Research loans. Many students spend more time reading a Chinese takeout menu than they do perusing the terms of a student loan. Don't sign anything until you understand the basics of college loans. Get a head start by reading MSN Money's student loan primer. 10. Max out federal loans first. Federal student loans are superior because they offer fixed interest rates and better repayment options. Try to avoid private loans, which often charge interest rates that look like typos. "For private loans, rates of 18%, 19% and 20% are not unheard of," warns Alan Collinge, who is the author of "The Student Loan Scam" and the founder of StudentLoanJustice.org, which advocates for student borrowers. Here is something even scarier: Many students confuse federal loans with the private variety. "I get stories all day long," Collinge says, "from students who thought they got federal loans, but just prior to graduating they learn they have private loans and the interest has been accruing during the years that they were at school." Perhaps this confusion is why roughly one out of every four private loan borrowers never takes out a federal Stafford loan, which is the most popular federal college loan. 11. Investigate nontraditional lenders. After you've maxed out federal loans, check out credit unions, advises Tim Ranzetta, who writes about college loans at the Student Lending Analytics Blog. He also recommends checking state loan programs. Remember, the stakes are high Not taking your debt seriously can sabotage your financial life long after you've framed your diploma: * An increasing number of employers are pulling the credit reports on college graduates who are seeking jobs. If an employer spots too much debt or a history of late payments on credit card and/or student loans, you might lose out even if you aced the interview. (See "How bad credit can cost you a job.") * Lackluster credit scores also prevent you from getting the most favorable interest rates when buying a car or applying for a home loan. - By Lynn O'Shaughnessy | MSN]]> 568 2009-09-13 15:44:16 2009-09-13 22:44:16 open open 11-ways-to-graduate-with-less-debt publish 0 0 post _edit_lock 1252916114 _edit_last 1 Job Market Stabilizing According To Korn/Ferry http://www.ethiopianreview.com/business/570 Sun, 13 Sep 2009 22:46:00 +0000 http://www.ethiopianreview.com/business/?p=570 Struggling Revenue Total revenue fell a dramatic 43.3% to $123.3 million as bread-and-butter fee revenue, which Korn/Ferry garners from recruiting executive-level positions such as boards of directors, CEOs and related senior executives, fell 38.9% to account for 95% of total revenue. The remainder of the revenue consists of expenses that are reimbursed from client corporations and fell 44.8%, in sympathy with the decreased executive search activity. Archrival Heidrick & Struggles (Nasdaq:HSII) also reported a precipitous decline in its most recent quarter as revenues fell 45.1%. In grasping for a silver lining, Korn/Ferry management pointed out that fee revenue increased 9% consecutively or from the first quarter. It also spoke of market stabilization and green shoots appearing as the company looks to diversify into ancillary services, such as Futurestep that offers recruitment consultant and opportunities for corporations to outsource certain human resources functions. Yet despite these efforts, nearly every corner of the recruiting market is being adversely impacted. Temporary and full-time financial staff recruiter Robert Half (NYSE:RHI) reported a 38.8% decline in its second-quarter revenue while online recruiter Monster Worldwide (NYSE:MWW) posted a 37% decline in its second-quarter revenue. Cutting Expenses Compensation and benefit expenses fell significantly (down 36.4%) as Korn/Ferry was able to pare headcount and other variable costs. However, it was only able to reduce more fixed general and administrative costs by 17.4% and had to take a hefty restructuring charge related to the June acquisition of Whitehead Mann, an international executive search firm focused primarily in the European market. Whitehead Mann apparently also negatively impacted revenue as Korn/Ferry stated the top line improved 3.7% when stripping out Whitehead Mann revenue. The end result was negative earnings of 33 cents per diluted share compared to a profit of 36 cents per diluted share in last year's first quarter. Returning again to the competition, each player mentioned above reported a bottom-line loss during its most current quarter. Despite the loss, earnings from continuing operations beat analyst expectations. For the coming year, Korn/Ferry expects fee revenue between $110 million to $120 million but stated that "making a meaningful prediction about earnings remains impractical" given the continued uncertainty in the global job market. Analysts currently project a full-year loss of 9 cents per share. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.) The Bottom Line As with most firms reporting results during the current earnings season, Korn/Ferry alluded to a stabilization of market conditions as actual results demonstrate that fundamentals continue to deteriorate. In Korn/Ferry's case it can easily ride out the storm given it can cut headcount at a moment's notice, has shied away from any long-term debt on the balance sheet and actually ended the quarter with $265.9 million in cash, or more than $6 per share. Earnings visibility remains murky and while the shares currently trade at 1.6 times sales projections for the coming year, the top line will likely also remain depressed for the foreseeable future. Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free! - By Ryan C. Fuhrmann | Investopedia]]> 570 2009-09-13 15:46:00 2009-09-13 22:46:00 open open job-market-stabilizing-according-to-kornferry publish 0 0 post _edit_lock 1252882144 _edit_last 2 Time To Make An Appointment With Dr. Pepper Snapple? http://www.ethiopianreview.com/business/574 Mon, 14 Sep 2009 10:49:44 +0000 http://www.ethiopianreview.com/business/?p=574 Investopedia Stock Analysis]]> 574 2009-09-14 03:49:44 2009-09-14 10:49:44 open open time-to-make-an-appointment-with-dr-pepper-snapple publish 0 0 post _edit_lock 1252938943 _edit_last 3 Convertible Securities On The Right Track http://www.ethiopianreview.com/business/577 Mon, 14 Sep 2009 10:53:58 +0000 http://www.ethiopianreview.com/business/?p=577 Investopedia Stock Analysis]]> 577 2009-09-14 03:53:58 2009-09-14 10:53:58 open open convertible-securities-on-the-right-track publish 0 0 post _edit_lock 1252938959 _edit_last 3 From the TechCrunch50 DemoPit: Meaningo, Tucoola and more http://www.ethiopianreview.com/business/596 Mon, 14 Sep 2009 11:16:45 +0000 http://www.ethiopianreview.com/business/?p=596 VentureBeat ]]> 596 2009-09-14 04:16:45 2009-09-14 11:16:45 open open from-the-techcrunch50-demopit-meaningo-tucoola-and-more publish 0 0 post _edit_last 3 _edit_lock 1252938961 Tata Sons revokes 4.1 mn pledged shares of Tata Motors http://www.ethiopianreview.com/business/599 Mon, 14 Sep 2009 11:19:28 +0000 http://www.ethiopianreview.com/business/?p=599 Business Standard]]> 599 2009-09-14 04:19:28 2009-09-14 11:19:28 open open tata-sons-revokes-4-1-mn-pledged-shares-of-tata-motors publish 0 0 post _edit_lock 1252938989 _edit_last 3 Hinduja Grp to invest Rs 350 cr in capacity expansion http://www.ethiopianreview.com/business/602 Mon, 14 Sep 2009 11:20:59 +0000 http://www.ethiopianreview.com/business/?p=602 Business Standard]]> 602 2009-09-14 04:20:59 2009-09-14 11:20:59 open open hinduja-grp-to-invest-rs-350-cr-in-capacity-expansion publish 0 0 post _edit_lock 1252927260 _edit_last 3 IOC implementing Rs 60,000 cr worth projects, bets on petrochem http://www.ethiopianreview.com/business/605 Mon, 14 Sep 2009 11:23:09 +0000 http://www.ethiopianreview.com/business/?p=605 Press Trust of India ]]> 605 2009-09-14 04:23:09 2009-09-14 11:23:09 open open ioc-implementing-rs-60000-cr-worth-projects-bets-on-petrochem publish 0 0 post _edit_lock 1252939041 _edit_last 3 JM Financial MF's AUM crosses Rs 10,000-crore mark http://www.ethiopianreview.com/business/608 Mon, 14 Sep 2009 11:24:35 +0000 http://www.ethiopianreview.com/business/?p=608 Business Standard]]> 608 2009-09-14 04:24:35 2009-09-14 11:24:35 open open jm-financial-mfs-aum-crosses-rs-10000-crore-mark publish 0 0 post _edit_lock 1252927475 _edit_last 3 Europe's economy to contract 4% in 2009: EU http://www.ethiopianreview.com/business/611 Mon, 14 Sep 2009 11:54:41 +0000 http://www.ethiopianreview.com/business/?p=611 Business Standard]]> 611 2009-09-14 04:54:41 2009-09-14 11:54:41 open open europes-economy-to-contract-4-in-2009-eu publish 0 0 post _edit_lock 1252929282 _edit_last 3 Future Group to grow 2.5 times to Rs 25,000 cr in 4 yrs: Biyani http://www.ethiopianreview.com/business/614 Mon, 14 Sep 2009 11:56:21 +0000 http://www.ethiopianreview.com/business/?p=614 Business Standard]]> 614 2009-09-14 04:56:21 2009-09-14 11:56:21 open open future-group-to-grow-2-5-times-to-rs-25000-cr-in-4-yrs-biyani publish 0 0 post _edit_lock 1252929382 _edit_last 3 Nilekani likely to shift to Karnataka Bhavan from 5-star hotel http://www.ethiopianreview.com/business/617 Mon, 14 Sep 2009 11:57:14 +0000 http://www.ethiopianreview.com/business/?p=617 Business Standard]]> 617 2009-09-14 04:57:14 2009-09-14 11:57:14 open open nilekani-likely-to-shift-to-karnataka-bhavan-from-5-star-hotel publish 0 0 post _edit_lock 1252929435 _edit_last 3 Leaked email from Shell Projects & Technology Executive Matthias Bichsel http://www.ethiopianreview.com/business/620 Mon, 14 Sep 2009 11:59:54 +0000 http://www.ethiopianreview.com/business/?p=620 RoyalDutchShellplc.com]]> 620 2009-09-14 04:59:54 2009-09-14 11:59:54 open open leaked-email-from-shell-projects-technology-executive-matthias-bichsel publish 0 0 post _edit_lock 1252929596 _edit_last 3 Crisis fallout: nations will be more cautious, govt debt swells http://www.ethiopianreview.com/business/623 Mon, 14 Sep 2009 12:03:06 +0000 http://www.ethiopianreview.com/business/?p=623 Business Standard]]> 623 2009-09-14 05:03:06 2009-09-14 12:03:06 open open crisis-fallout-nations-will-be-more-cautious-govt-debt-swells publish 0 0 post _edit_lock 1252929788 _edit_last 3 NEWSALERT: ASCIL appoints Ravishankar Gopalan as new Chief Operating Officer http://www.ethiopianreview.com/business/626 Mon, 14 Sep 2009 12:04:28 +0000 http://www.ethiopianreview.com/business/?p=626 Business Standard]]> 626 2009-09-14 05:04:28 2009-09-14 12:04:28 open open newsalert-ascil-appoints-ravishankar-gopalan-as-new-chief-operating-officer publish 0 0 post _edit_lock 1252929869 _edit_last 3 IDC likely to come out with design certification 'I-Mark':Vyas http://www.ethiopianreview.com/business/629 Mon, 14 Sep 2009 12:05:22 +0000 http://www.ethiopianreview.com/business/?p=629 Business Standard]]> 629 2009-09-14 05:05:22 2009-09-14 12:05:22 open open idc-likely-to-come-out-with-design-certification-i-markvyas publish 0 0 post _edit_lock 1252929922 _edit_last 3 RIL gets HC approval for RPL merger http://www.ethiopianreview.com/business/632 Mon, 14 Sep 2009 12:06:12 +0000 http://www.ethiopianreview.com/business/?p=632 Business Standard]]> 632 2009-09-14 05:06:12 2009-09-14 12:06:12 open open ril-gets-hc-approval-for-rpl-merger publish 0 0 post _edit_lock 1252929973 _edit_last 3 Indian drivers not good enough for F1: Mallya http://www.ethiopianreview.com/business/635 Mon, 14 Sep 2009 12:07:08 +0000 http://www.ethiopianreview.com/business/?p=635 Business Standard]]> 635 2009-09-14 05:07:08 2009-09-14 12:07:08 open open indian-drivers-not-good-enough-for-f1-mallya publish 0 0 post _edit_last 3 _edit_lock 1252930029 BHEL Tiruchi unit employees go on strike over wage issue http://www.ethiopianreview.com/business/638 Mon, 14 Sep 2009 12:08:05 +0000 http://www.ethiopianreview.com/business/?p=638 Business Standard]]> 638 2009-09-14 05:08:05 2009-09-14 12:08:05 open open bhel-tiruchi-unit-employees-go-on-strike-over-wage-issue publish 0 0 post _edit_lock 1252930086 _edit_last 3 SREI Infra gets Sebi nod to launch mutual fund biz http://www.ethiopianreview.com/business/641 Mon, 14 Sep 2009 12:08:54 +0000 http://www.ethiopianreview.com/business/?p=641 Business Standard]]> 641 2009-09-14 05:08:54 2009-09-14 12:08:54 open open srei-infra-gets-sebi-nod-to-launch-mutual-fund-biz publish 0 0 post _edit_lock 1252930135 _edit_last 3 Sri Lanka wants to rope in RIL for oil exploration http://www.ethiopianreview.com/business/644 Mon, 14 Sep 2009 12:09:51 +0000 http://www.ethiopianreview.com/business/?p=644 Business Standard ]]> 644 2009-09-14 05:09:51 2009-09-14 12:09:51 open open sri-lanka-wants-to-rope-in-ril-for-oil-exploration publish 0 0 post _edit_lock 1252930191 _edit_last 3 Food security in SAARC possible by increased agri-trade http://www.ethiopianreview.com/business/647 Mon, 14 Sep 2009 12:10:43 +0000 http://www.ethiopianreview.com/business/?p=647 Business Standard]]> 647 2009-09-14 05:10:43 2009-09-14 12:10:43 open open food-security-in-saarc-possible-by-increased-agri-trade publish 0 0 post _edit_lock 1252930244 _edit_last 3 Deutsche Bank appointed as $ clearing bank for CCIL http://www.ethiopianreview.com/business/650 Mon, 14 Sep 2009 12:11:46 +0000 http://www.ethiopianreview.com/business/?p=650 Business Standard]]> 650 2009-09-14 05:11:46 2009-09-14 12:11:46 open open deutsche-bank-appointed-as-clearing-bank-for-ccil publish 0 0 post _edit_lock 1252930307 _edit_last 3 Steve Jobs is back on center stage http://www.ethiopianreview.com/business/653 Mon, 14 Sep 2009 12:13:38 +0000 http://www.ethiopianreview.com/business/?p=653 CNNMoney.com ]]> 653 2009-09-14 05:13:38 2009-09-14 12:13:38 open open steve-jobs-is-back-on-center-stage publish 0 0 post _edit_lock 1252930419 _edit_last 3 Delhi CM assures to complete CWG projects well in time http://www.ethiopianreview.com/business/656 Mon, 14 Sep 2009 12:15:00 +0000 http://www.ethiopianreview.com/business/?p=656 Business Standard]]> 656 2009-09-14 05:15:00 2009-09-14 12:15:00 open open delhi-cm-assures-to-complete-cwg-projects-well-in-time publish 0 0 post _edit_lock 1252930502 _edit_last 3 Thomson Reuters launches global indices range http://www.ethiopianreview.com/business/659 Mon, 14 Sep 2009 12:16:45 +0000 http://www.ethiopianreview.com/business/?p=659 Business Standard]]> 659 2009-09-14 05:16:45 2009-09-14 12:16:45 open open thomson-reuters-launches-global-indices-range publish 0 0 post _edit_lock 1252930606 _edit_last 3 Russia's largest bank to open branch in India http://www.ethiopianreview.com/business/662 Mon, 14 Sep 2009 12:17:33 +0000 http://www.ethiopianreview.com/business/?p=662 Business Standard]]> 662 2009-09-14 05:17:33 2009-09-14 12:17:33 open open russias-largest-bank-to-open-branch-in-india publish 0 0 post _edit_lock 1252930654 _edit_last 3 OMDC, Bisra Stone Lime to invest Rs 1,000 cr to set up plants http://www.ethiopianreview.com/business/665 Mon, 14 Sep 2009 12:18:19 +0000 http://www.ethiopianreview.com/business/?p=665 Business Standard]]> 665 2009-09-14 05:18:19 2009-09-14 12:18:19 open open omdc-bisra-stone-lime-to-invest-rs-1000-cr-to-set-up-plants publish 0 0 post _edit_lock 1252930699 _edit_last 3 Hughes to connect around 3,000 ATMs of SBI http://www.ethiopianreview.com/business/668 Mon, 14 Sep 2009 12:19:26 +0000 http://www.ethiopianreview.com/business/?p=668 Business Standard]]> 668 2009-09-14 05:19:26 2009-09-14 12:19:26 open open hughes-to-connect-around-3000-atms-of-sbi publish 0 0 post _edit_lock 1252930767 _edit_last 3 YES Bank to raise Rs 95 cr tier II capital from French finance agency http://www.ethiopianreview.com/business/671 Mon, 14 Sep 2009 12:20:14 +0000 http://www.ethiopianreview.com/business/?p=671 Business Standard]]> 671 2009-09-14 05:20:14 2009-09-14 12:20:14 open open yes-bank-to-raise-rs-95-cr-tier-ii-capital-from-french-finance-agency publish 0 0 post _edit_lock 1252930815 _edit_last 3 Uno Invsts sells Rs 215 cr worth shares of Shriram Transport Fin http://www.ethiopianreview.com/business/674 Mon, 14 Sep 2009 12:21:07 +0000 http://www.ethiopianreview.com/business/?p=674 Business Standard]]> 674 2009-09-14 05:21:07 2009-09-14 12:21:07 open open uno-invsts-sells-rs-215-cr-worth-shares-of-shriram-transport-fin publish 0 0 post _edit_lock 1252930868 _edit_last 3 Trade unions to stage nation-wide protests on October 28 http://www.ethiopianreview.com/business/677 Mon, 14 Sep 2009 12:22:02 +0000 http://www.ethiopianreview.com/business/?p=677 Business Standard]]> 677 2009-09-14 05:22:02 2009-09-14 12:22:02 open open trade-unions-to-stage-nation-wide-protests-on-october-28 publish 0 0 post _edit_lock 1252930923 _edit_last 3 GEECL completes laying gas pipeline from Asansole to Durgapur http://www.ethiopianreview.com/business/680 Mon, 14 Sep 2009 12:22:41 +0000 http://www.ethiopianreview.com/business/?p=680 Business Standard]]> 680 2009-09-14 05:22:41 2009-09-14 12:22:41 open open geecl-completes-laying-gas-pipeline-from-asansole-to-durgapur publish 0 0 post _edit_lock 1252930962 _edit_last 3 RIL shows interest in oil fields in Brazil, Gulf of Mexico http://www.ethiopianreview.com/business/683 Mon, 14 Sep 2009 12:23:25 +0000 http://www.ethiopianreview.com/business/?p=683 Business Standard]]> 683 2009-09-14 05:23:25 2009-09-14 12:23:25 open open ril-shows-interest-in-oil-fields-in-brazil-gulf-of-mexico publish 0 0 post _edit_lock 1252931006 _edit_last 3 Fortis Healthcare's Rs 1,000-cr rights issue likely by Oct http://www.ethiopianreview.com/business/686 Mon, 14 Sep 2009 12:24:08 +0000 http://www.ethiopianreview.com/business/?p=686 Business Standard]]> 686 2009-09-14 05:24:08 2009-09-14 12:24:08 open open fortis-healthcares-rs-1000-cr-rights-issue-likely-by-oct publish 0 0 post _edit_lock 1252931049 _edit_last 3 City Corp launches second-hand flats biz in Pune http://www.ethiopianreview.com/business/689 Mon, 14 Sep 2009 12:25:27 +0000 http://www.ethiopianreview.com/business/?p=689 Business Standard ]]> 689 2009-09-14 05:25:27 2009-09-14 12:25:27 open open city-corp-launches-second-hand-flats-biz-in-pune publish 0 0 post _edit_lock 1252931128 _edit_last 3 SBI Life Insurance launches Shubh Nivesh http://www.ethiopianreview.com/business/692 Mon, 14 Sep 2009 12:26:10 +0000 http://www.ethiopianreview.com/business/?p=692 Business Standard]]> 692 2009-09-14 05:26:10 2009-09-14 12:26:10 open open sbi-life-insurance-launches-shubh-nivesh publish 0 0 post _edit_lock 1252931171 _edit_last 3 Nielsen India appoints Ranade as Director, Consumer Research http://www.ethiopianreview.com/business/695 Mon, 14 Sep 2009 12:26:54 +0000 http://www.ethiopianreview.com/business/?p=695 Business Standard]]> 695 2009-09-14 05:26:54 2009-09-14 12:26:54 open open nielsen-india-appoints-ranade-as-director-consumer-research publish 0 0 post _edit_lock 1252931215 _edit_last 3 Availability of arms in SE Asia sustaining NE militancy: Govt http://www.ethiopianreview.com/business/698 Mon, 14 Sep 2009 12:27:43 +0000 http://www.ethiopianreview.com/business/?p=698 Business Standard ]]> 698 2009-09-14 05:27:43 2009-09-14 12:27:43 open open availability-of-arms-in-se-asia-sustaining-ne-militancy-govt publish 0 0 post _edit_lock 1252931264 _edit_last 3 SC directs EC to allot common symbol to MNS http://www.ethiopianreview.com/business/701 Mon, 14 Sep 2009 12:28:32 +0000 http://www.ethiopianreview.com/business/?p=701 Business Standard]]> 701 2009-09-14 05:28:32 2009-09-14 12:28:32 open open sc-directs-ec-to-allot-common-symbol-to-mns publish 0 0 post _edit_lock 1252931313 _edit_last 3 Obama: More uninsured than you think http://www.ethiopianreview.com/business/704 Mon, 14 Sep 2009 12:30:24 +0000 http://www.ethiopianreview.com/business/?p=704 CNN ]]> 704 2009-09-14 05:30:24 2009-09-14 12:30:24 open open obama-more-uninsured-than-you-think publish 0 0 post _edit_lock 1252931426 _edit_last 3 A hint of health-care compromise http://www.ethiopianreview.com/business/707 Mon, 14 Sep 2009 12:32:08 +0000 http://www.ethiopianreview.com/business/?p=707 CNNMoney.com ]]> 707 2009-09-14 05:32:08 2009-09-14 12:32:08 open open a-hint-of-health-care-compromise publish 0 0 post _edit_lock 1252931529 _edit_last 3 Health Insurer Stocks Rise Despite Obama's Call For Change http://www.ethiopianreview.com/business/710 Mon, 14 Sep 2009 12:33:26 +0000 http://www.ethiopianreview.com/business/?p=710 Dow Jones Newswires]]> 710 2009-09-14 05:33:26 2009-09-14 12:33:26 open open health-insurer-stocks-rise-despite-obamas-call-for-change publish 0 0 post _edit_lock 1252931607 _edit_last 3 Apple's Sept. 9 music event: What's Steve Jobs got up his sleeve? http://www.ethiopianreview.com/business/713 Mon, 14 Sep 2009 12:35:09 +0000 http://www.ethiopianreview.com/business/?p=713 CNNMoney.com]]> 713 2009-09-14 05:35:09 2009-09-14 12:35:09 open open apples-sept-9-music-event-whats-steve-jobs-got-up-his-sleeve publish 0 0 post _edit_lock 1252931710 _edit_last 3 Apple event roulette: Place your bets http://www.ethiopianreview.com/business/716 Mon, 14 Sep 2009 12:36:15 +0000 http://www.ethiopianreview.com/business/?p=716 CNNMoney.com]]> 716 2009-09-14 05:36:15 2009-09-14 12:36:15 open open apple-event-roulette-place-your-bets publish 0 0 post _edit_lock 1252931776 _edit_last 3 Apple slashes iPod prices up to $120 http://www.ethiopianreview.com/business/719 Mon, 14 Sep 2009 12:45:41 +0000 http://www.ethiopianreview.com/business/?p=719 CNNMoney.com]]> 719 2009-09-14 05:45:41 2009-09-14 12:45:41 open open apple-slashes-ipod-prices-up-to-120 publish 0 0 post _edit_lock 1252932343 _edit_last 3 No Beatles, just Steve Jobs and Norah Jones http://www.ethiopianreview.com/business/722 Mon, 14 Sep 2009 12:46:34 +0000 http://www.ethiopianreview.com/business/?p=722 CNNMoney.com]]> 722 2009-09-14 05:46:34 2009-09-14 12:46:34 open open no-beatles-just-steve-jobs-and-norah-jones publish 0 0 post _edit_lock 1252932395 _edit_last 3 CORRECT: 3rd UPDATE: Apple's Jobs Takes Stage At San Francisco Event http://www.ethiopianreview.com/business/725 Mon, 14 Sep 2009 12:47:54 +0000 http://www.ethiopianreview.com/business/?p=725 Dow Jones Newswires]]> 725 2009-09-14 05:47:54 2009-09-14 12:47:54 open open correct-3rd-update-apples-jobs-takes-stage-at-san-francisco-event publish 0 0 post _edit_lock 1252932475 _edit_last 3 Bulls vs. Bears: Re-analyzing Apple http://www.ethiopianreview.com/business/728 Mon, 14 Sep 2009 12:48:47 +0000 http://www.ethiopianreview.com/business/?p=728 CNNMoney.com]]> 728 2009-09-14 05:48:47 2009-09-14 12:48:47 open open bulls-vs-bears-re-analyzing-apple publish 0 0 post _edit_lock 1252932527 _edit_last 3 Sonia does a Pawar, to travel economy class http://www.ethiopianreview.com/business/731 Mon, 14 Sep 2009 12:49:40 +0000 http://www.ethiopianreview.com/business/?p=731 Business Standard]]> 731 2009-09-14 05:49:40 2009-09-14 12:49:40 open open sonia-does-a-pawar-to-travel-economy-class publish 0 0 post _edit_lock 1252932613 _edit_last 3 Anil group firm moves SC to become party to NTPC-RIL case http://www.ethiopianreview.com/business/734 Mon, 14 Sep 2009 12:51:18 +0000 http://www.ethiopianreview.com/business/?p=734 Business Standard]]> 734 2009-09-14 05:51:18 2009-09-14 12:51:18 open open anil-group-firm-moves-sc-to-become-party-to-ntpc-ril-case publish 0 0 post _edit_last 3 _edit_lock 1252932680 HDIL to pay tax on Rs 350 cr additional income http://www.ethiopianreview.com/business/737 Mon, 14 Sep 2009 12:52:02 +0000 http://www.ethiopianreview.com/business/?p=737 Business Standard]]> 737 2009-09-14 05:52:02 2009-09-14 12:52:02 open open hdil-to-pay-tax-on-rs-350-cr-additional-income publish 0 0 post _edit_lock 1252932723 _edit_last 3 IBM and ISB Partner to Create Research 'Collaboratory' for Service Science http://www.ethiopianreview.com/business/740 Mon, 14 Sep 2009 12:53:10 +0000 http://www.ethiopianreview.com/business/?p=740 Business Standard]]> 740 2009-09-14 05:53:10 2009-09-14 12:53:10 open open ibm-and-isb-partner-to-create-research-collaboratory-for-service-science publish 0 0 post _edit_lock 1252932791 _edit_last 3 UAE may allow 100% ownership of businesses http://www.ethiopianreview.com/business/743 Mon, 14 Sep 2009 12:53:59 +0000 http://www.ethiopianreview.com/business/?p=743 Business Standard]]> 743 2009-09-14 05:53:59 2009-09-14 12:53:59 open open uae-may-allow-100-ownership-of-businesses publish 0 0 post _edit_lock 1252932839 _edit_last 3 Suven Life gets two more US patents for NCEs http://www.ethiopianreview.com/business/746 Mon, 14 Sep 2009 12:55:17 +0000 http://www.ethiopianreview.com/business/?p=746 Business Standard]]> 746 2009-09-14 05:55:17 2009-09-14 12:55:17 open open suven-life-gets-two-more-us-patents-for-nces publish 0 0 post _edit_lock 1252932918 _edit_last 3 Energy giants agree to develop huge Australian LNG project http://www.ethiopianreview.com/business/749 Mon, 14 Sep 2009 12:58:25 +0000 http://www.ethiopianreview.com/business/?p=749 Business Standard]]> 749 2009-09-14 05:58:25 2009-09-14 12:58:25 open open energy-giants-agree-to-develop-huge-australian-lng-project publish 0 0 post _edit_lock 1252933107 _edit_last 3 Maoists seeking to forge alliance with NE secessionists http://www.ethiopianreview.com/business/753 Mon, 14 Sep 2009 12:59:51 +0000 http://www.ethiopianreview.com/business/?p=753 Business Standard ]]> 753 2009-09-14 05:59:51 2009-09-14 12:59:51 open open maoists-seeking-to-forge-alliance-with-ne-secessionists publish 0 0 post _edit_lock 1252933192 _edit_last 3 Shell Motiva US Gas Station Transition Continues http://www.ethiopianreview.com/business/756 Mon, 14 Sep 2009 13:03:05 +0000 http://www.ethiopianreview.com/business/?p=756 RoyalDutchShellplc.com]]> 756 2009-09-14 06:03:05 2009-09-14 13:03:05 open open shell-motiva-us-gas-station-transition-continues publish 0 0 post _edit_lock 1252933387 _edit_last 3 Royal Dutch Shell takes Final Investment Decision on Gorgon LNG project, Australia http://www.ethiopianreview.com/business/760 Mon, 14 Sep 2009 13:09:13 +0000 http://www.ethiopianreview.com/business/?p=760 RoyalDutchShellplc.com]]> 760 2009-09-14 06:09:13 2009-09-14 13:09:13 open open royal-dutch-shell-takes-final-investment-decision-on-gorgon-lng-project-australia publish 0 0 post _edit_lock 1252933754 _edit_last 3 Intuit to buy Mint for $170 million http://www.ethiopianreview.com/business/764 Mon, 14 Sep 2009 13:10:56 +0000 http://www.ethiopianreview.com/business/?p=764 VentureBeat]]> 764 2009-09-14 06:10:56 2009-09-14 13:10:56 open open intuit-to-buy-mint-for-170-million publish 0 0 post _edit_lock 1252933857 _edit_last 3 Cloudkick’s simple cloud management gets $750K http://www.ethiopianreview.com/business/767 Mon, 14 Sep 2009 13:12:53 +0000 http://www.ethiopianreview.com/business/?p=767 VentureBeat ]]> 767 2009-09-14 06:12:53 2009-09-14 13:12:53 open open cloudkick%e2%80%99s-simple-cloud-management-gets-750k publish 0 0 post _edit_lock 1252933975 _edit_last 3 TV opens market for Jacksonville seafood business http://www.ethiopianreview.com/business/770 Mon, 14 Sep 2009 13:16:41 +0000 http://www.ethiopianreview.com/business/?p=770 Bizjournals.com]]> 770 2009-09-14 06:16:41 2009-09-14 13:16:41 open open tv-opens-market-for-jacksonville-seafood-business publish 0 0 post _edit_lock 1252934202 _edit_last 3 The basics on biofuels http://www.ethiopianreview.com/business/773 Mon, 14 Sep 2009 13:25:43 +0000 http://www.ethiopianreview.com/business/?p=773 New Mexico Business Weekly ]]> 773 2009-09-14 06:25:43 2009-09-14 13:25:43 open open the-basics-on-biofuels publish 0 0 post _edit_lock 1252934745 _edit_last 3 The bold new face of GM http://www.ethiopianreview.com/business/776 Mon, 14 Sep 2009 13:30:00 +0000 http://www.ethiopianreview.com/business/?p=776 BusinessWeek]]> 776 2009-09-14 06:30:00 2009-09-14 13:30:00 open open the-bold-new-face-of-gm publish 0 0 post _edit_lock 1252935001 _edit_last 3 A golden opportunity for investors? http://www.ethiopianreview.com/business/779 Mon, 14 Sep 2009 13:32:05 +0000 http://www.ethiopianreview.com/business/?p=779 MSN Money]]> 779 2009-09-14 06:32:05 2009-09-14 13:32:05 open open a-golden-opportunity-for-investors publish 0 0 post _edit_lock 1252935146 _edit_last 3 Will Dow return to 14,000? Bet on it http://www.ethiopianreview.com/business/783 Mon, 14 Sep 2009 13:35:00 +0000 http://www.ethiopianreview.com/business/?p=783 MSN Money]]> 783 2009-09-14 06:35:00 2009-09-14 13:35:00 open open will-dow-return-to-14000-bet-on-it publish 0 0 post _edit_lock 1252935302 _edit_last 3 Symark Buys BeyondTrust, Changes Name http://www.ethiopianreview.com/business/786 Mon, 14 Sep 2009 13:55:15 +0000 http://www.ethiopianreview.com/business/?p=786 PE Hub News]]> 786 2009-09-14 06:55:15 2009-09-14 13:55:15 open open symark-buys-beyondtrust-changes-name publish 0 0 post _edit_lock 1252936517 _edit_last 3 Ozmo Raises $7.5 Million http://www.ethiopianreview.com/business/789 Mon, 14 Sep 2009 13:56:26 +0000 http://www.ethiopianreview.com/business/?p=789 PE Hub News]]> 789 2009-09-14 06:56:26 2009-09-14 13:56:26 open open ozmo-raises-7-5-million publish 0 0 post _edit_lock 1252936587 _edit_last 3 Tervela Raises $18 Million http://www.ethiopianreview.com/business/792 Mon, 14 Sep 2009 13:57:14 +0000 http://www.ethiopianreview.com/business/?p=792 PE Hub News]]> 792 2009-09-14 06:57:14 2009-09-14 13:57:14 open open tervela-raises-18-million publish 0 0 post _edit_lock 1252936635 _edit_last 3 40% of swine flu patients young and healthy: WHO http://www.ethiopianreview.com/business/795 Mon, 14 Sep 2009 13:58:48 +0000 http://www.ethiopianreview.com/business/?p=795 Business Standard]]> 795 2009-09-14 06:58:48 2009-09-14 13:58:48 open open 40-of-swine-flu-patients-young-and-healthy-who publish 0 0 post _edit_lock 1252936729 _edit_last 3 Plaza Centers India makes CBRE exclusive leasing partner http://www.ethiopianreview.com/business/798 Mon, 14 Sep 2009 14:00:09 +0000 http://www.ethiopianreview.com/business/?p=798 Business Standard]]> 798 2009-09-14 07:00:09 2009-09-14 14:00:09 open open plaza-centers-india-makes-cbre-exclusive-leasing-partner publish 0 0 post _edit_lock 1252936810 _edit_last 3 No govt approval to marketing margin on gas: PetroMin http://www.ethiopianreview.com/business/801 Mon, 14 Sep 2009 14:01:17 +0000 http://www.ethiopianreview.com/business/?p=801 Business Standard]]> 801 2009-09-14 07:01:17 2009-09-14 14:01:17 open open no-govt-approval-to-marketing-margin-on-gas-petromin publish 0 0 post _edit_lock 1252936878 _edit_last 3 All Commonwealth Games projects on course: Jaipal Reddy http://www.ethiopianreview.com/business/804 Mon, 14 Sep 2009 14:02:29 +0000 http://www.ethiopianreview.com/business/?p=804 Business Standard]]> 804 2009-09-14 07:02:29 2009-09-14 14:02:29 open open all-commonwealth-games-projects-on-course-jaipal-reddy publish 0 0 post _edit_lock 1252936950 _edit_last 3 Tide Water Oil to expand capacity http://www.ethiopianreview.com/business/807 Mon, 14 Sep 2009 14:03:05 +0000 http://www.ethiopianreview.com/business/?p=807 Business Standard ]]> 807 2009-09-14 07:03:05 2009-09-14 14:03:05 open open tide-water-oil-to-expand-capacity publish 0 0 post _edit_lock 1252936986 _edit_last 3 India keen to help Lanka set up industry in war ravaged areas http://www.ethiopianreview.com/business/810 Mon, 14 Sep 2009 14:03:56 +0000 http://www.ethiopianreview.com/business/?p=810 Press Trust of India]]> 810 2009-09-14 07:03:56 2009-09-14 14:03:56 open open india-keen-to-help-lanka-set-up-industry-in-war-ravaged-areas publish 0 0 post _edit_lock 1252937516 _edit_last 3 Sunteck Realty to raise Rs 500cr via QIP http://www.ethiopianreview.com/business/813 Mon, 14 Sep 2009 14:05:00 +0000 http://www.ethiopianreview.com/business/?p=813 Business Standard]]> 813 2009-09-14 07:05:00 2009-09-14 14:05:00 open open sunteck-realty-to-raise-rs-500cr-via-qip publish 0 0 post _edit_lock 1252937446 _edit_last 3 Sinha describes austerity measures as tokenism http://www.ethiopianreview.com/business/816 Mon, 14 Sep 2009 14:05:57 +0000 http://www.ethiopianreview.com/business/?p=816 Press Trust of India]]> 816 2009-09-14 07:05:57 2009-09-14 14:05:57 open open sinha-describes-austerity-measures-as-tokenism publish 0 0 post _edit_lock 1252937616 _edit_last 3 IOC expects oil bonds worth Rs 6,200-crore http://www.ethiopianreview.com/business/819 Mon, 14 Sep 2009 14:09:38 +0000 http://www.ethiopianreview.com/business/?p=819 Press Trust of India]]> 819 2009-09-14 07:09:38 2009-09-14 14:09:38 open open ioc-expects-oil-bonds-worth-rs-6200-crore publish 0 0 post _edit_lock 1252937433 _edit_last 3 CIL to commission 19 washeries entailing Rs 3K cr investment http://www.ethiopianreview.com/business/828 Mon, 14 Sep 2009 14:16:22 +0000 http://www.ethiopianreview.com/business/?p=828 Press Trust of India]]> 828 2009-09-14 07:16:22 2009-09-14 14:16:22 open open cil-to-commission-19-washeries-entailing-rs-3k-cr-investment publish 0 0 post _edit_lock 1252937787 _edit_last 3 Emerging stock mkts shrug off Lehman blues http://www.ethiopianreview.com/business/831 Mon, 14 Sep 2009 14:18:06 +0000 http://www.ethiopianreview.com/business/?p=831 Press Trust of India]]> 831 2009-09-14 07:18:06 2009-09-14 14:18:06 open open emerging-stock-mkts-shrug-off-lehman-blues publish 0 0 post _edit_lock 1252937887 _edit_last 3 Adult TV shows: I&B min mulls parental lock system http://www.ethiopianreview.com/business/834 Mon, 14 Sep 2009 14:19:33 +0000 http://www.ethiopianreview.com/business/?p=834 Press Trust of India]]> 834 2009-09-14 07:19:33 2009-09-14 14:19:33 open open adult-tv-shows-ib-min-mulls-parental-lock-system publish 0 0 post _edit_lock 1252937975 _edit_last 3 Domestic steel cos 'better placed' than global peers in India http://www.ethiopianreview.com/business/837 Mon, 14 Sep 2009 14:20:44 +0000 http://www.ethiopianreview.com/business/?p=837 Press Trust of India]]> 837 2009-09-14 07:20:44 2009-09-14 14:20:44 open open domestic-steel-cos-better-placed-than-global-peers-in-india publish 0 0 post _edit_lock 1252938045 _edit_last 3 Sarkozy wants happiness used as economic indicator http://www.ethiopianreview.com/business/840 Mon, 14 Sep 2009 14:22:40 +0000 http://www.ethiopianreview.com/business/?p=840 AP/ PTI / Paris]]> 840 2009-09-14 07:22:40 2009-09-14 14:22:40 open open sarkozy-wants-happiness-used-as-economic-indicator publish 0 0 post _edit_lock 1252938162 _edit_last 3 IAEA appoints Japan's Amano as new chief http://www.ethiopianreview.com/business/844 Mon, 14 Sep 2009 14:24:04 +0000 http://www.ethiopianreview.com/business/?p=844 AFP/ PTI / Vienna]]> 844 2009-09-14 07:24:04 2009-09-14 14:24:04 open open iaea-appoints-japans-amano-as-new-chief publish 0 0 post _edit_lock 1252938245 _edit_last 3 SC notice to Tata Teleservices on TRAI's plea http://www.ethiopianreview.com/business/847 Mon, 14 Sep 2009 14:25:05 +0000 http://www.ethiopianreview.com/business/?p=847 Press Trust of India ]]> 847 2009-09-14 07:25:05 2009-09-14 14:25:05 open open sc-notice-to-tata-teleservices-on-trais-plea publish 0 0 post _edit_lock 1252938306 _edit_last 3 Uttam Galva promoters revoke 10% of the pledged shares http://www.ethiopianreview.com/business/850 Mon, 14 Sep 2009 14:28:29 +0000 http://www.ethiopianreview.com/business/?p=850 Press Trust of India]]> 850 2009-09-14 07:28:29 2009-09-14 14:28:29 open open uttam-galva-promoters-revoke-10-of-the-pledged-shares publish 0 0 post _edit_lock 1252938511 _edit_last 3 StanChart to hire 2,000 staff; to open KPO in Bangalore http://www.ethiopianreview.com/business/853 Mon, 14 Sep 2009 14:30:20 +0000 http://www.ethiopianreview.com/business/?p=853 Press Trust of India]]> 853 2009-09-14 07:30:20 2009-09-14 14:30:20 open open stanchart-to-hire-2000-staff-to-open-kpo-in-bangalore publish 0 0 post _edit_lock 1252938621 _edit_last 3 India's 6th civil nuclear pact signed with Mongolia http://www.ethiopianreview.com/business/856 Mon, 14 Sep 2009 14:31:30 +0000 http://www.ethiopianreview.com/business/?p=856 Press Trust of India]]> 856 2009-09-14 07:31:30 2009-09-14 14:31:30 open open indias-6th-civil-nuclear-pact-signed-with-mongolia publish 0 0 post _edit_lock 1252938691 _edit_last 3 SOTC looks at online revenues http://www.ethiopianreview.com/business/859 Mon, 14 Sep 2009 14:33:06 +0000 http://www.ethiopianreview.com/business/?p=859 Business Standard]]> 859 2009-09-14 07:33:06 2009-09-14 14:33:06 open open sotc-looks-at-online-revenues publish 0 0 post _edit_lock 1252938787 _edit_last 3 Mixed bag for Kolkata Fashion Week II http://www.ethiopianreview.com/business/864 Mon, 14 Sep 2009 15:27:24 +0000 http://www.ethiopianreview.com/business/?p=864 Business Standard]]> 864 2009-09-14 08:27:24 2009-09-14 15:27:24 open open mixed-bag-for-kolkata-fashion-week-ii publish 0 0 post _edit_lock 1252942046 _edit_last 3 First Reserve Commits $500 Million to KrisEnergy http://www.ethiopianreview.com/business/867 Mon, 14 Sep 2009 15:30:10 +0000 http://www.ethiopianreview.com/business/?p=867 PE Hub News]]> 867 2009-09-14 08:30:10 2009-09-14 15:30:10 open open first-reserve-commits-500-million-to-krisenergy publish 0 0 post _edit_lock 1252942211 _edit_last 3 Scott Chou Named Managing Director at Gabriel Venture Partners http://www.ethiopianreview.com/business/870 Mon, 14 Sep 2009 15:31:41 +0000 http://www.ethiopianreview.com/business/?p=870 PE Hub News]]> 870 2009-09-14 08:31:41 2009-09-14 15:31:41 open open scott-chou-named-managing-director-at-gabriel-venture-partners publish 0 0 post _edit_lock 1252942301 _edit_last 3 Rob McCombie Joins CBPE Capital http://www.ethiopianreview.com/business/873 Mon, 14 Sep 2009 15:33:05 +0000 http://www.ethiopianreview.com/business/?p=873 PE Hub News]]> 873 2009-09-14 08:33:05 2009-09-14 15:33:05 open open rob-mccombie-joins-cbpe-capital publish 0 0 post _edit_lock 1252942386 _edit_last 3 Fertilizer Min seeks over 43 mmscmd of RIL gas http://www.ethiopianreview.com/business/876 Mon, 14 Sep 2009 15:38:56 +0000 http://www.ethiopianreview.com/business/?p=876 Press Trust of India]]> 876 2009-09-14 08:38:56 2009-09-14 15:38:56 open open fertilizer-min-seeks-over-43-mmscmd-of-ril-gas publish 0 0 post _edit_lock 1252942739 _edit_last 3 IOC mulls to source 1-mn tonnes of crude from RIL's KG field http://www.ethiopianreview.com/business/879 Mon, 14 Sep 2009 15:40:30 +0000 http://www.ethiopianreview.com/business/?p=879 Press Trust of India]]> 879 2009-09-14 08:40:30 2009-09-14 15:40:30 open open ioc-mulls-to-source-1-mn-tonnes-of-crude-from-rils-kg-field publish 0 0 post _edit_lock 1252942831 _edit_last 3 Yulong dials Reliance ADA Group for India foray http://www.ethiopianreview.com/business/882 Mon, 14 Sep 2009 15:41:42 +0000 http://www.ethiopianreview.com/business/?p=882 BS Reporter]]> 882 2009-09-14 08:41:42 2009-09-14 15:41:42 open open yulong-dials-reliance-ada-group-for-india-foray publish 0 0 post _edit_lock 1252942903 _edit_last 3 Toyota launches new Land Cruiser Prado http://www.ethiopianreview.com/business/885 Mon, 14 Sep 2009 15:42:55 +0000 http://www.ethiopianreview.com/business/?p=885 Business Standard]]> 885 2009-09-14 08:42:55 2009-09-14 15:42:55 open open toyota-launches-new-land-cruiser-prado publish 0 0 post _edit_lock 1252942977 _edit_last 3 Rajasthan cooperative banks to disburse Rs 1,000 cr crop loans http://www.ethiopianreview.com/business/888 Mon, 14 Sep 2009 15:43:48 +0000 http://www.ethiopianreview.com/business/?p=888 Press Trust of India]]> 888 2009-09-14 08:43:48 2009-09-14 15:43:48 open open rajasthan-cooperative-banks-to-disburse-rs-1000-cr-crop-loans publish 0 0 post _edit_lock 1252943029 _edit_last 3 Air India signs pact with Singapore Airlines http://www.ethiopianreview.com/business/895 Mon, 14 Sep 2009 15:46:40 +0000 http://www.ethiopianreview.com/business/?p=895 Press Trust of India]]> 895 2009-09-14 08:46:40 2009-09-14 15:46:40 open open air-india-signs-pact-with-singapore-airlines publish 0 0 post _edit_lock 1252943202 _edit_last 3 S&P's rating services revises outlook on Tata Power http://www.ethiopianreview.com/business/898 Mon, 14 Sep 2009 15:47:42 +0000 http://www.ethiopianreview.com/business/?p=898 BS Reporter]]> 898 2009-09-14 08:47:42 2009-09-14 15:47:42 open open sps-rating-services-revises-outlook-on-tata-power publish 0 0 post _edit_lock 1252943264 _edit_last 3 You Need an Auto Responder in Affiliate Marketing http://www.ethiopianreview.com/business/901 Mon, 14 Sep 2009 15:50:10 +0000 http://www.ethiopianreview.com/business/?p=901 Associated Content]]> 901 2009-09-14 08:50:10 2009-09-14 15:50:10 open open 901 publish 0 0 post _edit_lock 1252943433 _edit_last 3 Great Traffic Exchange Tips http://www.ethiopianreview.com/business/905 Mon, 14 Sep 2009 15:52:53 +0000 http://www.ethiopianreview.com/business/?p=905 Associated Content ]]> 905 2009-09-14 08:52:53 2009-09-14 15:52:53 open open great-traffic-exchange-tips publish 0 0 post _edit_lock 1252943575 _edit_last 3 2354 66.229.109.174 2009-10-19 19:19:26 2009-10-20 02:19:26 0 0 0 Avoiding the Credit Trap http://www.ethiopianreview.com/business/908 Mon, 14 Sep 2009 15:54:00 +0000 http://www.ethiopianreview.com/business/?p=908 Associated Content]]> 908 2009-09-14 08:54:00 2009-09-14 15:54:00 open open avoiding-the-credit-trap publish 0 0 post _edit_lock 1252943640 _edit_last 3 Disney Buys Marvel - but What Does it Mean? http://www.ethiopianreview.com/business/911 Mon, 14 Sep 2009 15:56:53 +0000 http://www.ethiopianreview.com/business/?p=911 Associated Content]]> 911 2009-09-14 08:56:53 2009-09-14 15:56:53 open open disney-buys-marvel-but-what-does-it-mean publish 0 0 post _edit_lock 1252943846 _edit_last 3 Avere Systems raises $15M to build cheaper, more powerful enterprise storage http://www.ethiopianreview.com/business/916 Mon, 14 Sep 2009 15:59:31 +0000 http://www.ethiopianreview.com/business/?p=916 VentureBeat]]> 916 2009-09-14 08:59:31 2009-09-14 15:59:31 open open avere-systems-raises-15m-to-build-cheaper-more-powerful-enterprise-storage publish 0 0 post _edit_lock 1252943973 _edit_last 3 Natus Medical Buying Alpine Biomed http://www.ethiopianreview.com/business/918 Mon, 14 Sep 2009 16:02:10 +0000 http://www.ethiopianreview.com/business/?p=918 PE Hub News]]> 918 2009-09-14 09:02:10 2009-09-14 16:02:10 open open natus-medical-buying-alpine-biomed publish 0 0 post _edit_lock 1252944131 _edit_last 3 Aquafil Raises €45 Million http://www.ethiopianreview.com/business/921 Mon, 14 Sep 2009 16:03:51 +0000 http://www.ethiopianreview.com/business/?p=921 PE Hub News]]> 921 2009-09-14 09:03:51 2009-09-14 16:03:51 open open aquafil-raises-e45-million publish 0 0 post _edit_lock 1252944232 _edit_last 3 Avaya Wins Nortel’s Enterprise Unit http://www.ethiopianreview.com/business/924 Mon, 14 Sep 2009 16:06:10 +0000 http://www.ethiopianreview.com/business/?p=924 PE Hub News]]> 924 2009-09-14 09:06:10 2009-09-14 16:06:10 open open avaya-wins-nortel%e2%80%99s-enterprise-unit publish 0 0 post _edit_lock 1252944371 _edit_last 3 Blackstone, CVC Team Up for Bellsystem24 Bid http://www.ethiopianreview.com/business/927 Mon, 14 Sep 2009 16:07:16 +0000 http://www.ethiopianreview.com/business/?p=927 PE Hub News ]]> 927 2009-09-14 09:07:16 2009-09-14 16:07:16 open open blackstone-cvc-team-up-for-bellsystem24-bid publish 0 0 post _edit_lock 1252944436 _edit_last 3 Is Intel poised for an executive overhaul? http://www.ethiopianreview.com/business/930 Mon, 14 Sep 2009 16:09:40 +0000 http://www.ethiopianreview.com/business/?p=930 VentureBeat ]]> 930 2009-09-14 09:09:40 2009-09-14 16:09:40 open open is-intel-poised-for-an-executive-overhaul publish 0 0 post _edit_lock 1252944582 _edit_last 3 T-Mobile on desperate rampage: Bids on Orange in UK, now Sprint in US? http://www.ethiopianreview.com/business/933 Mon, 14 Sep 2009 16:11:44 +0000 http://www.ethiopianreview.com/business/?p=933 VentureBeat ]]> 933 2009-09-14 09:11:44 2009-09-14 16:11:44 open open t-mobile-on-desperate-rampage-bids-on-orange-in-uk-now-sprint-in-us publish 0 0 post _edit_lock 1252944705 _edit_last 3 Game co. WebWars has players surf the web to rescue fairies http://www.ethiopianreview.com/business/936 Mon, 14 Sep 2009 16:13:14 +0000 http://www.ethiopianreview.com/business/?p=936 VentureBeat ]]> 936 2009-09-14 09:13:14 2009-09-14 16:13:14 open open game-co-webwars-has-players-surf-the-web-to-rescue-fairies publish 0 0 post _edit_lock 1252944794 _edit_last 3 Intel flexes its manufacturing muscle with shift to new generation http://www.ethiopianreview.com/business/939 Mon, 14 Sep 2009 16:21:45 +0000 http://www.ethiopianreview.com/business/?p=939 VentureBeat ]]> 939 2009-09-14 09:21:45 2009-09-14 16:21:45 open open click-here-to-find-out-more-intel-flexes-its-manufacturing-muscle-with-shift-to-new-generation publish 0 0 post _edit_lock 1252964679 _edit_last 3 American Airlines Arena has a sharper focus http://www.ethiopianreview.com/business/944 Mon, 14 Sep 2009 16:27:33 +0000 http://www.ethiopianreview.com/business/?p=944 South Florida Business Journal]]> 944 2009-09-14 09:27:33 2009-09-14 16:27:33 open open american-airlines-arena-has-a-sharper-focus publish 0 0 post _edit_lock 1252945655 _edit_last 3 Insurance Review: Progressive vs. Geico http://www.ethiopianreview.com/business/947 Mon, 14 Sep 2009 16:29:38 +0000 http://www.ethiopianreview.com/business/947 AC]]> 947 2009-09-14 09:29:38 2009-09-14 16:29:38 open open insurance-review-progressive-vs-geico publish 0 0 post _edit_lock 1252945780 _edit_last 2 No More Naked Shorting of Stocks http://www.ethiopianreview.com/business/948 Mon, 14 Sep 2009 16:30:21 +0000 http://www.ethiopianreview.com/business/?p=948 AC]]> 948 2009-09-14 09:30:21 2009-09-14 16:30:21 open open no-more-naked-shorting-of-stocks publish 0 0 post _edit_lock 1252945822 _edit_last 2 The Total Cost of Borrowing Money http://www.ethiopianreview.com/business/950 Mon, 14 Sep 2009 16:31:16 +0000 http://www.ethiopianreview.com/business/?p=950 AC]]> 950 2009-09-14 09:31:16 2009-09-14 16:31:16 open open the-total-cost-of-borrowing-money publish 0 0 post _edit_lock 1252945877 _edit_last 2 Economics Fundamentals: Understanding Oligopolies http://www.ethiopianreview.com/business/952 Mon, 14 Sep 2009 16:32:17 +0000 http://www.ethiopianreview.com/business/?p=952 AC]]> 952 2009-09-14 09:32:17 2009-09-14 16:32:17 open open economics-fundamentals-understanding-oligopolies publish 0 0 post _edit_lock 1252946001 _edit_last 2 Economics Fundamentals: The Law of Supply http://www.ethiopianreview.com/business/954 Mon, 14 Sep 2009 16:32:57 +0000 http://www.ethiopianreview.com/business/?p=954 AC]]> 954 2009-09-14 09:32:57 2009-09-14 16:32:57 open open economics-fundamentals-the-law-of-supply publish 0 0 post _edit_lock 1252945977 _edit_last 2 Economics Fundamentals: The Law of Demand http://www.ethiopianreview.com/business/956 Mon, 14 Sep 2009 16:33:42 +0000 http://www.ethiopianreview.com/business/?p=956 AC]]> 956 2009-09-14 09:33:42 2009-09-14 16:33:42 open open economics-fundamentals-the-law-of-demand publish 0 0 post _edit_lock 1252946022 _edit_last 2 Productive Management: How to Reward and Discipline Employees http://www.ethiopianreview.com/business/958 Mon, 14 Sep 2009 16:34:24 +0000 http://www.ethiopianreview.com/business/?p=958 AC]]> 958 2009-09-14 09:34:24 2009-09-14 16:34:24 open open productive-management-how-to-reward-and-discipline-employees publish 0 0 post _edit_lock 1252946065 _edit_last 2 Creating Extra Cash Flow: Seven Tips for Making Extra Money http://www.ethiopianreview.com/business/960 Mon, 14 Sep 2009 16:35:00 +0000 http://www.ethiopianreview.com/business/?p=960 AC]]> 960 2009-09-14 09:35:00 2009-09-14 16:35:00 open open creating-extra-cash-flow-seven-tips-for-making-extra-money publish 0 0 post _edit_lock 1252946101 _edit_last 2 The Consequences of Student Loan Default http://www.ethiopianreview.com/business/962 Mon, 14 Sep 2009 16:35:44 +0000 http://www.ethiopianreview.com/business/?p=962 AC]]> 962 2009-09-14 09:35:44 2009-09-14 16:35:44 open open the-consequences-of-student-loan-default publish 0 0 post _edit_lock 1252946146 _edit_last 2 International Manager's Three Keys to Success http://www.ethiopianreview.com/business/964 Mon, 14 Sep 2009 16:36:39 +0000 http://www.ethiopianreview.com/business/?p=964 AC]]> 964 2009-09-14 09:36:39 2009-09-14 16:36:39 open open international-managers-three-keys-to-success publish 0 0 post _edit_lock 1252946200 _edit_last 2 GI Partners Sells Its Final Data Center http://www.ethiopianreview.com/business/965 Mon, 14 Sep 2009 16:36:47 +0000 http://www.ethiopianreview.com/business/?p=965 PE Hub News]]> 965 2009-09-14 09:36:47 2009-09-14 16:36:47 open open gi-partners-sells-its-final-data-center publish 0 0 post _edit_lock 1252946208 _edit_last 3 A Case for Investing in Closed-end Funds http://www.ethiopianreview.com/business/969 Mon, 14 Sep 2009 16:37:22 +0000 http://www.ethiopianreview.com/business/?p=969 AC]]> 969 2009-09-14 09:37:22 2009-09-14 16:37:22 open open a-case-for-investing-in-closed-end-funds publish 0 0 post _edit_lock 1252946243 _edit_last 2 Soane Energy Raises First VC Round http://www.ethiopianreview.com/business/970 Mon, 14 Sep 2009 16:37:37 +0000 http://www.ethiopianreview.com/business/?p=970 PE Hub News]]> 970 2009-09-14 09:37:37 2009-09-14 16:37:37 open open soane-energy-raises-first-vc-round publish 0 0 post _edit_lock 1252946257 _edit_last 3 How to Invest in Gold http://www.ethiopianreview.com/business/972 Mon, 14 Sep 2009 16:38:04 +0000 http://www.ethiopianreview.com/business/?p=972 AC]]> 972 2009-09-14 09:38:04 2009-09-14 16:38:04 open open how-to-invest-in-gold publish 0 0 post _edit_lock 1252946285 _edit_last 2 Haynesville Expansion Project Gets Injection http://www.ethiopianreview.com/business/975 Mon, 14 Sep 2009 16:38:21 +0000 http://www.ethiopianreview.com/business/?p=975 PE Hub News]]> 975 2009-09-14 09:38:21 2009-09-14 16:38:21 open open haynesville-expansion-project-gets-injection publish 0 0 post _edit_lock 1252946302 _edit_last 3 Put Your Best People on Innovation http://www.ethiopianreview.com/business/977 Mon, 14 Sep 2009 16:38:53 +0000 http://www.ethiopianreview.com/business/?p=977 AC]]> 977 2009-09-14 09:38:53 2009-09-14 16:38:53 open open put-your-best-people-on-innovation publish 0 0 post _edit_lock 1252946334 _edit_last 2 Verafin Raises C$5.5 Million http://www.ethiopianreview.com/business/980 Mon, 14 Sep 2009 16:39:11 +0000 http://www.ethiopianreview.com/business/?p=980 PE Hub News]]> 980 2009-09-14 09:39:11 2009-09-14 16:39:11 open open verafin-raises-c5-5-million publish 0 0 post _edit_lock 1252946352 _edit_last 3 Hedging: How to Circumvent Life's Uncertainties http://www.ethiopianreview.com/business/982 Mon, 14 Sep 2009 16:39:36 +0000 http://www.ethiopianreview.com/business/?p=982 AC]]> 982 2009-09-14 09:39:36 2009-09-14 16:39:36 open open hedging-how-to-circumvent-lifes-uncertainties publish 0 0 post _edit_lock 1252946377 _edit_last 2 Avere Systems Raises $15 Million http://www.ethiopianreview.com/business/986 Mon, 14 Sep 2009 16:40:10 +0000 http://www.ethiopianreview.com/business/?p=986 PE Hub News]]> 986 2009-09-14 09:40:10 2009-09-14 16:40:10 open open avere-systems-raises-15-million publish 0 0 post _edit_lock 1252946411 _edit_last 3 A Banking Institution's Worst Nightmare: A Bank Run http://www.ethiopianreview.com/business/987 Mon, 14 Sep 2009 16:40:22 +0000 http://www.ethiopianreview.com/business/?p=987 AC]]> 987 2009-09-14 09:40:22 2009-09-14 16:40:22 open open a-banking-institutions-worst-nightmare-a-bank-run publish 0 0 post _edit_lock 1252946444 _edit_last 2 InXpo Raises $9 Million http://www.ethiopianreview.com/business/991 Mon, 14 Sep 2009 16:40:58 +0000 http://www.ethiopianreview.com/business/?p=991 PE Hub News]]> 991 2009-09-14 09:40:58 2009-09-14 16:40:58 open open inxpo-raises-9-million publish 0 0 post _edit_lock 1252946458 _edit_last 3 How to Research a Website Before Signing Up http://www.ethiopianreview.com/business/992 Mon, 14 Sep 2009 16:41:29 +0000 http://www.ethiopianreview.com/business/?p=992 AC ]]> 992 2009-09-14 09:41:29 2009-09-14 16:41:29 open open how-to-research-a-website-before-signing-up publish 0 0 post _edit_lock 1252946490 _edit_last 2 DFJ Esprit Raising Two New Funds http://www.ethiopianreview.com/business/996 Mon, 14 Sep 2009 16:41:32 +0000 http://www.ethiopianreview.com/business/?p=996 PE Hub News]]> 996 2009-09-14 09:41:32 2009-09-14 16:41:32 open open dfj-esprit-raising-two-new-funds publish 0 0 post _edit_last 3 _edit_lock 1252946493 GreenBytes Raises $8 Million from Battery Ventures http://www.ethiopianreview.com/business/1001 Mon, 14 Sep 2009 16:42:17 +0000 http://www.ethiopianreview.com/business/?p=1001 PE Hub News]]> 1001 2009-09-14 09:42:17 2009-09-14 16:42:17 open open greenbytes-raises-8-million-from-battery-ventures publish 0 0 post _edit_lock 1252946538 _edit_last 3 Entrepreneurs' Survival Kit for 2009: Capital Budgeting Decisions with Limited Budgets http://www.ethiopianreview.com/business/1000 Mon, 14 Sep 2009 16:42:24 +0000 http://www.ethiopianreview.com/business/?p=1000 AC ]]> 1000 2009-09-14 09:42:24 2009-09-14 16:42:24 open open entrepreneurs-survival-kit-for-2009-capital-budgeting-decisions-with-limited-budgets publish 0 0 post _edit_lock 1252946545 _edit_last 2 Muzak Files Reorganization Plan http://www.ethiopianreview.com/business/1006 Mon, 14 Sep 2009 16:43:10 +0000 http://www.ethiopianreview.com/business/?p=1006 PE Hub News]]> 1006 2009-09-14 09:43:10 2009-09-14 16:43:10 open open muzak-files-reorganization-plan publish 0 0 post _edit_lock 1252946591 _edit_last 3 Careers for History Majors http://www.ethiopianreview.com/business/1005 Mon, 14 Sep 2009 16:43:26 +0000 http://www.ethiopianreview.com/business/?p=1005 AC ]]> 1005 2009-09-14 09:43:26 2009-09-14 16:43:26 open open careers-for-history-majors publish 0 0 post _edit_lock 1252946608 _edit_last 2 Mitchell Stern Joins Morgan Joseph http://www.ethiopianreview.com/business/1010 Mon, 14 Sep 2009 16:43:51 +0000 http://www.ethiopianreview.com/business/?p=1010 PE Hub News]]> 1010 2009-09-14 09:43:51 2009-09-14 16:43:51 open open mitchell-stern-joins-morgan-joseph publish 0 0 post _edit_lock 1252946631 _edit_last 3 How to Make an Extra $500 in a Month http://www.ethiopianreview.com/business/1012 Mon, 14 Sep 2009 16:44:30 +0000 http://www.ethiopianreview.com/business/?p=1012 AC]]> 1012 2009-09-14 09:44:30 2009-09-14 16:44:30 open open how-to-make-an-extra-500-in-a-month publish 0 0 post _edit_lock 1252946733 _edit_last 2 Apache Design Buys Sequence Design http://www.ethiopianreview.com/business/1016 Mon, 14 Sep 2009 16:45:16 +0000 http://www.ethiopianreview.com/business/?p=1016 PE Hub News]]> 1016 2009-09-14 09:45:16 2009-09-14 16:45:16 open open apache-design-buys-sequence-design publish 0 0 post _edit_lock 1252946717 _edit_last 3 Mastering the Auction House in World of Warcraft http://www.ethiopianreview.com/business/1015 Mon, 14 Sep 2009 16:45:47 +0000 http://www.ethiopianreview.com/business/?p=1015 AC ]]> 1015 2009-09-14 09:45:47 2009-09-14 16:45:47 open open mastering-the-auction-house-in-world-of-warcraft publish 0 0 post _edit_lock 1252946811 _edit_last 2 IncentOne Sells Certain Assets to Augeo Affinity http://www.ethiopianreview.com/business/1019 Mon, 14 Sep 2009 16:45:52 +0000 http://www.ethiopianreview.com/business/?p=1019 PE Hub News]]> 1019 2009-09-14 09:45:52 2009-09-14 16:45:52 open open incentone-sells-certain-assets-to-augeo-affinity publish 0 0 post _edit_lock 1252946753 _edit_last 3 Hara Software Raises $14 Million http://www.ethiopianreview.com/business/1023 Mon, 14 Sep 2009 16:46:35 +0000 http://www.ethiopianreview.com/business/?p=1023 PE Hub News]]> 1023 2009-09-14 09:46:35 2009-09-14 16:46:35 open open hara-software-raises-14-million publish 0 0 post _edit_lock 1252946795 _edit_last 3 Jobvite Raises $8.25 Million http://www.ethiopianreview.com/business/1027 Mon, 14 Sep 2009 16:47:12 +0000 http://www.ethiopianreview.com/business/?p=1027 PE Hub News]]> 1027 2009-09-14 09:47:12 2009-09-14 16:47:12 open open jobvite-raises-8-25-million publish 0 0 post _edit_lock 1252946833 _edit_last 3 Want to Be a Video Game Tester? http://www.ethiopianreview.com/business/1024 Mon, 14 Sep 2009 16:47:13 +0000 http://www.ethiopianreview.com/business/?p=1024 AC]]> 1024 2009-09-14 09:47:13 2009-09-14 16:47:13 open open want-to-be-a-video-game-tester publish 0 0 post _edit_lock 1252947797 _edit_last 2 VeriVue Adds $20 Million http://www.ethiopianreview.com/business/1031 Mon, 14 Sep 2009 16:47:59 +0000 http://www.ethiopianreview.com/business/?p=1031 PE Hub News]]> 1031 2009-09-14 09:47:59 2009-09-14 16:47:59 open open verivue-adds-20-million publish 0 0 post _edit_last 3 _edit_lock 1252946879 Shweta Jalan Joins Advent International http://www.ethiopianreview.com/business/1034 Mon, 14 Sep 2009 16:48:44 +0000 http://www.ethiopianreview.com/business/?p=1034 PE Hub News]]> 1034 2009-09-14 09:48:44 2009-09-14 16:48:44 open open shweta-jalan-joins-advent-international publish 0 0 post _edit_lock 1252946925 _edit_last 3 DoCoMo Backs Evernote http://www.ethiopianreview.com/business/1037 Mon, 14 Sep 2009 16:49:24 +0000 http://www.ethiopianreview.com/business/?p=1037 PE Hub News ]]> 1037 2009-09-14 09:49:24 2009-09-14 16:49:24 open open docomo-backs-evernote publish 0 0 post _edit_lock 1252946965 _edit_last 3 Brazil’s Tivit May Raise $430 Million in IPO http://www.ethiopianreview.com/business/1040 Mon, 14 Sep 2009 16:50:06 +0000 http://www.ethiopianreview.com/business/?p=1040 PE Hub News]]> 1040 2009-09-14 09:50:06 2009-09-14 16:50:06 open open brazil%e2%80%99s-tivit-may-raise-430-million-in-ipo publish 0 0 post _edit_lock 1252947007 _edit_last 3 Superior Capital Buys National Archive Publishing http://www.ethiopianreview.com/business/1043 Mon, 14 Sep 2009 16:50:39 +0000 http://www.ethiopianreview.com/business/?p=1043 PE Hub News]]> 1043 2009-09-14 09:50:39 2009-09-14 16:50:39 open open superior-capital-buys-national-archive-publishing publish 0 0 post _edit_lock 1252947040 _edit_last 3 Quest Specialty Chemicals Adds On http://www.ethiopianreview.com/business/1046 Mon, 14 Sep 2009 16:51:28 +0000 http://www.ethiopianreview.com/business/?p=1046 PE Hub News]]> 1046 2009-09-14 09:51:28 2009-09-14 16:51:28 open open quest-specialty-chemicals-adds-on publish 0 0 post _edit_lock 1252947090 _edit_last 3 Sithe Global Power Sells Part of Goreway Station http://www.ethiopianreview.com/business/1049 Mon, 14 Sep 2009 16:52:13 +0000 http://www.ethiopianreview.com/business/?p=1049 PE Hub News]]> 1049 2009-09-14 09:52:13 2009-09-14 16:52:13 open open sithe-global-power-sells-part-of-goreway-station publish 0 0 post _edit_lock 1252947134 _edit_last 3 Sentinel Capital Backs Precision Pipeline Solutions http://www.ethiopianreview.com/business/1052 Mon, 14 Sep 2009 16:52:57 +0000 http://www.ethiopianreview.com/business/?p=1052 PE Hub News]]> 1052 2009-09-14 09:52:57 2009-09-14 16:52:57 open open sentinel-capital-backs-precision-pipeline-solutions publish 0 0 post _edit_lock 1252947178 _edit_last 3 230 117.94.226.64 2009-10-03 11:20:13 2009-10-03 18:20:13 0 0 0 New PE Firm Enters MSC Software Fray http://www.ethiopianreview.com/business/1055 Mon, 14 Sep 2009 16:53:34 +0000 http://www.ethiopianreview.com/business/?p=1055 PE Hub News]]> 1055 2009-09-14 09:53:34 2009-09-14 16:53:34 open open new-pe-firm-enters-msc-software-fray publish 0 0 post _edit_lock 1252947214 _edit_last 3 Lenovo Shares Fall After PE Firms Sell Shares http://www.ethiopianreview.com/business/1058 Mon, 14 Sep 2009 16:54:14 +0000 http://www.ethiopianreview.com/business/?p=1058 PE Hub News]]> 1058 2009-09-14 09:54:14 2009-09-14 16:54:14 open open lenovo-shares-fall-after-pe-firms-sell-shares publish 0 0 post _edit_lock 1252947262 _edit_last 3 JP Morgan Media Banker Joins Blackstone Group http://www.ethiopianreview.com/business/1062 Mon, 14 Sep 2009 16:55:01 +0000 http://www.ethiopianreview.com/business/?p=1062 PE Hub News]]> 1062 2009-09-14 09:55:01 2009-09-14 16:55:01 open open jp-morgan-media-banker-joins-blackstone-group publish 0 0 post _edit_lock 1252947304 _edit_last 3 Care Dynamix Raises $7 Million http://www.ethiopianreview.com/business/1065 Mon, 14 Sep 2009 16:55:39 +0000 http://www.ethiopianreview.com/business/?p=1065 PE Hub News]]> 1065 2009-09-14 09:55:39 2009-09-14 16:55:39 open open care-dynamix-raises-7-million publish 0 0 post _edit_lock 1252947340 _edit_last 3 Charlesbank Capital Closes Fund VII http://www.ethiopianreview.com/business/1068 Mon, 14 Sep 2009 16:56:50 +0000 http://www.ethiopianreview.com/business/?p=1068 PE Hub News]]> 1068 2009-09-14 09:56:50 2009-09-14 16:56:50 open open charlesbank-capital-closes-fund-vii publish 0 0 post _edit_lock 1252947411 _edit_last 3 Brookfield Launches $400m Columbian Infrastructure Fund http://www.ethiopianreview.com/business/1071 Mon, 14 Sep 2009 16:57:34 +0000 http://www.ethiopianreview.com/business/?p=1071 PE Hub News]]> 1071 2009-09-14 09:57:34 2009-09-14 16:57:34 open open brookfield-launches-400m-columbian-infrastructure-fund publish 0 0 post _edit_lock 1252947455 _edit_last 3 General Atlantic Cuts Xchanging Stake to 9.9% http://www.ethiopianreview.com/business/1074 Mon, 14 Sep 2009 16:58:16 +0000 http://www.ethiopianreview.com/business/?p=1074 PE Hub News]]> 1074 2009-09-14 09:58:16 2009-09-14 16:58:16 open open general-atlantic-cuts-xchanging-stake-to-9-9 publish 0 0 post _edit_lock 1252947497 _edit_last 3 CCB Raising $380 Million for First Yuan Fund http://www.ethiopianreview.com/business/1077 Mon, 14 Sep 2009 16:59:23 +0000 http://www.ethiopianreview.com/business/?p=1077 PE Hub News]]> 1077 2009-09-14 09:59:23 2009-09-14 16:59:23 open open ccb-raising-380-million-for-first-yuan-fund publish 0 0 post _edit_lock 1252947564 _edit_last 3 National Express Says In Talks with Consortium http://www.ethiopianreview.com/business/1080 Mon, 14 Sep 2009 17:00:11 +0000 http://www.ethiopianreview.com/business/?p=1080 PE Hub News]]> 1080 2009-09-14 10:00:11 2009-09-14 17:00:11 open open national-express-says-in-talks-with-consortium publish 0 0 post _edit_lock 1252947612 _edit_last 3 A123, Artio Among Six IPOs To Debut Week of Sept 21 http://www.ethiopianreview.com/business/1083 Mon, 14 Sep 2009 17:00:56 +0000 http://www.ethiopianreview.com/business/?p=1083 PE Hub News]]> 1083 2009-09-14 10:00:56 2009-09-14 17:00:56 open open a123-artio-among-six-ipos-to-debut-week-of-sept-21 publish 0 0 post _edit_lock 1252947657 _edit_last 3 Volcker: Banks Should Not Be Able To Own Hedge, Equity Funds http://www.ethiopianreview.com/business/1086 Mon, 14 Sep 2009 17:01:46 +0000 http://www.ethiopianreview.com/business/?p=1086 PE Hub News]]> 1086 2009-09-14 10:01:46 2009-09-14 17:01:46 open open volcker-banks-should-not-be-able-to-own-hedge-equity-funds publish 0 0 post _edit_lock 1252947707 _edit_last 3 Blackstone and Lion Cap In Talks To Sell Orangina Schweppes http://www.ethiopianreview.com/business/1089 Mon, 14 Sep 2009 17:02:31 +0000 http://www.ethiopianreview.com/business/?p=1089 PE Hub News]]> 1089 2009-09-14 10:02:31 2009-09-14 17:02:31 open open blackstone-and-lion-cap-in-talks-to-sell-orangina-schweppes publish 0 0 post _edit_lock 1252947752 _edit_last 3 arGEN-X Raises €9.5 Million http://www.ethiopianreview.com/business/1092 Mon, 14 Sep 2009 17:03:14 +0000 http://www.ethiopianreview.com/business/?p=1092 PE Hub News]]> 1092 2009-09-14 10:03:14 2009-09-14 17:03:14 open open argen-x-raises-e9-5-million publish 0 0 post _edit_lock 1252947795 _edit_last 3 Dan Google Leaves Easton Capital http://www.ethiopianreview.com/business/1096 Mon, 14 Sep 2009 17:04:11 +0000 http://www.ethiopianreview.com/business/?p=1096 PE Hub News]]> 1096 2009-09-14 10:04:11 2009-09-14 17:04:11 open open dan-google-leaves-easton-capital publish 0 0 post _edit_lock 1252947852 _edit_last 3 Ten Ways to Stretch Your Grocery Dollars http://www.ethiopianreview.com/business/1095 Mon, 14 Sep 2009 17:04:28 +0000 http://www.ethiopianreview.com/business/?p=1095 AC]]> 1095 2009-09-14 10:04:28 2009-09-14 17:04:28 open open ten-ways-to-stretch-your-grocery-dollars publish 0 0 post _edit_lock 1252947868 _edit_last 2 Victor Kats Joins Ascension Health Ventures http://www.ethiopianreview.com/business/1101 Mon, 14 Sep 2009 17:05:03 +0000 http://www.ethiopianreview.com/business/?p=1101 PE Hub News ]]> 1101 2009-09-14 10:05:03 2009-09-14 17:05:03 open open victor-kats-joins-ascension-health-ventures publish 0 0 post _edit_lock 1252947904 _edit_last 3 Social Security Facts You Should Know http://www.ethiopianreview.com/business/1100 Mon, 14 Sep 2009 17:05:16 +0000 http://www.ethiopianreview.com/business/?p=1100 AC ]]> 1100 2009-09-14 10:05:16 2009-09-14 17:05:16 open open social-security-facts-you-should-know publish 0 0 post _edit_lock 1252948544 _edit_last 2 VitaPath Genetics Raises $6 Million http://www.ethiopianreview.com/business/1106 Mon, 14 Sep 2009 17:05:52 +0000 http://www.ethiopianreview.com/business/?p=1106 PE Hub News]]> 1106 2009-09-14 10:05:52 2009-09-14 17:05:52 open open vitapath-genetics-raises-6-million publish 0 0 post _edit_last 3 _edit_lock 1252947953 Greg Metz Joins Ropes & Gray’s PE Practice http://www.ethiopianreview.com/business/1112 Mon, 14 Sep 2009 17:06:40 +0000 http://www.ethiopianreview.com/business/?p=1112 PE Hub News]]> 1112 2009-09-14 10:06:40 2009-09-14 17:06:40 open open greg-metz-joins-ropes-gray%e2%80%99s-pe-practice publish 0 0 post _edit_lock 1252948001 _edit_last 3 $20M audit garners $100M in savings at Santa Clara Valley Medical Center http://www.ethiopianreview.com/business/1107 Mon, 14 Sep 2009 17:07:10 +0000 http://www.ethiopianreview.com/business/?p=1107 Santa Clara Valley Medical Center officials say a $20 million contract is bringing them close to $100 million in returns. The lower figure is the amount Santa Clara County paid Deloitte Consulting LLP for a two-year, extensive review and overhaul of myriad processes at the largest public hospital in Northern California — including how insurance denials are handled, how patients are charged for treatment and how doctors and nurses spend their time. The higher figure is what hospital officials say they will have saved, in direct savings and avoided costs, by the end of fiscal year 2011. The process, called “Transformation 2010,” already has resulted in $59.4 million in savings, putting the hospital a year ahead of where officials thought it would be in implementing Deloitte’s recommendations, according to VMC CEO Kim Roberts. - by Mary Duan | Silicon Valley / San Jose Business Journal ]]> 1107 2009-09-14 10:07:10 2009-09-14 17:07:10 open open 20m-audit-garners-100m-in-savings-at-santa-clara-valley-medical-center publish 0 0 post _edit_lock 1252948531 _edit_last 2 Robert Goldbaum Joins Paul Weiss http://www.ethiopianreview.com/business/1115 Mon, 14 Sep 2009 17:07:19 +0000 http://www.ethiopianreview.com/business/?p=1115 PE Hub News]]> 1115 2009-09-14 10:07:19 2009-09-14 17:07:19 open open robert-goldbaum-joins-paul-weiss publish 0 0 post _edit_lock 1252948041 _edit_last 3 Select Medical Sets IPO Terms http://www.ethiopianreview.com/business/1120 Mon, 14 Sep 2009 17:08:08 +0000 http://www.ethiopianreview.com/business/?p=1120 PE Hub News]]> 1120 2009-09-14 10:08:08 2009-09-14 17:08:08 open open select-medical-sets-ipo-terms publish 0 0 post _edit_lock 1252948089 _edit_last 3 Leading local accountants offer views from the top http://www.ethiopianreview.com/business/1109 Mon, 14 Sep 2009 17:08:39 +0000 http://www.ethiopianreview.com/business/?p=1109 Washington Business Journal]]> 1109 2009-09-14 10:08:39 2009-09-14 17:08:39 open open leading-local-accountants-offer-views-from-the-top publish 0 0 post _edit_lock 1252948611 _edit_last 2 Neil Flanagan Joins Welsh Carson http://www.ethiopianreview.com/business/1123 Mon, 14 Sep 2009 17:08:47 +0000 http://www.ethiopianreview.com/business/?p=1123 PE Hub News]]> 1123 2009-09-14 10:08:47 2009-09-14 17:08:47 open open neil-flanagan-joins-welsh-carson publish 0 0 post _edit_lock 1252948127 _edit_last 3 Matthew Allard Joins Thomas Weisel http://www.ethiopianreview.com/business/1128 Mon, 14 Sep 2009 17:09:23 +0000 http://www.ethiopianreview.com/business/?p=1128 PE Hub News]]> 1128 2009-09-14 10:09:23 2009-09-14 17:09:23 open open matthew-allard-joins-thomas-weisel publish 0 0 post _edit_lock 1252948164 _edit_last 3 Accounting firms help clients weather tough financial times http://www.ethiopianreview.com/business/1111 Mon, 14 Sep 2009 17:09:27 +0000 http://www.ethiopianreview.com/business/?p=1111 Washington Business Journal ]]> 1111 2009-09-14 10:09:27 2009-09-14 17:09:27 open open accounting-firms-help-clients-weather-tough-financial-times publish 0 0 post _edit_lock 1252948595 _edit_last 2 Intervale-Backed Tejas Adds On http://www.ethiopianreview.com/business/1133 Mon, 14 Sep 2009 17:10:12 +0000 http://www.ethiopianreview.com/business/?p=1133 PE Hub News]]> 1133 2009-09-14 10:10:12 2009-09-14 17:10:12 open open intervale-backed-tejas-adds-on publish 0 0 post _edit_lock 1252948212 _edit_last 3 Spectrum Equity Backs Business Monitor http://www.ethiopianreview.com/business/1138 Mon, 14 Sep 2009 17:11:15 +0000 http://www.ethiopianreview.com/business/?p=1138 PE Hub News]]> 1138 2009-09-14 10:11:15 2009-09-14 17:11:15 open open spectrum-equity-backs-business-monitor publish 0 0 post _edit_last 3 _edit_lock 1252948276 New rules part of CPA license http://www.ethiopianreview.com/business/1132 Mon, 14 Sep 2009 17:11:42 +0000 http://www.ethiopianreview.com/business/?p=1132 Business First of Buffalo]]> 1132 2009-09-14 10:11:42 2009-09-14 17:11:42 open open new-rules-part-of-cpa-license publish 0 0 post _edit_lock 1252948561 _edit_last 2 Michael McShane Joins Advent International http://www.ethiopianreview.com/business/1142 Mon, 14 Sep 2009 17:12:09 +0000 http://www.ethiopianreview.com/business/?p=1142 PE Hub News]]> 1142 2009-09-14 10:12:09 2009-09-14 17:12:09 open open michael-mcshane-joins-advent-international publish 0 0 post _edit_lock 1252948329 _edit_last 3 CPAs head back to class http://www.ethiopianreview.com/business/1134 Mon, 14 Sep 2009 17:12:40 +0000 http://www.ethiopianreview.com/business/?p=1134 Business First of Buffalo]]> 1134 2009-09-14 10:12:40 2009-09-14 17:12:40 open open cpas-head-back-to-class publish 0 0 post _edit_lock 1252948609 _edit_last 2 Westley Group Raises More Than $100 Million for Second Fund http://www.ethiopianreview.com/business/1146 Mon, 14 Sep 2009 17:13:00 +0000 http://www.ethiopianreview.com/business/?p=1146 PE Hub News]]> 1146 2009-09-14 10:13:00 2009-09-14 17:13:00 open open westley-group-raises-more-than-100-million-for-second-fund publish 0 0 post _edit_lock 1252948381 _edit_last 3 Cotton Creek Capital Buys Waste Partners of Texas http://www.ethiopianreview.com/business/1150 Mon, 14 Sep 2009 17:13:38 +0000 http://www.ethiopianreview.com/business/?p=1150 PE Hub News]]> 1150 2009-09-14 10:13:38 2009-09-14 17:13:38 open open cotton-creek-capital-buys-waste-partners-of-texas publish 0 0 post _edit_lock 1252948419 _edit_last 3 Capital being held up, deals not flowing as they once did http://www.ethiopianreview.com/business/1135 Mon, 14 Sep 2009 17:13:40 +0000 http://www.ethiopianreview.com/business/?p=1135 Philadelphia Business Journal]]> 1135 2009-09-14 10:13:40 2009-09-14 17:13:40 open open capital-being-held-up-deals-not-flowing-as-they-once-did publish 0 0 post _edit_lock 1252948422 _edit_last 2 Extended Stay Agrees To Probe Into Buyout, Bankruptcy http://www.ethiopianreview.com/business/1154 Mon, 14 Sep 2009 17:14:16 +0000 http://www.ethiopianreview.com/business/?p=1154 PE Hub News]]> 1154 2009-09-14 10:14:16 2009-09-14 17:14:16 open open extended-stay-agrees-to-probe-into-buyout-bankruptcy publish 0 0 post _edit_lock 1252948457 _edit_last 3 Ausura and Contardi Join Navigation Capital http://www.ethiopianreview.com/business/1157 Mon, 14 Sep 2009 17:15:17 +0000 http://www.ethiopianreview.com/business/?p=1157 PE Hub News]]> 1157 2009-09-14 10:15:17 2009-09-14 17:15:17 open open ausura-and-contardi-join-navigation-capital publish 0 0 post _edit_last 3 _edit_lock 1252948518 CheckFree Founder Joins ComVest http://www.ethiopianreview.com/business/1162 Mon, 14 Sep 2009 17:16:25 +0000 http://www.ethiopianreview.com/business/?p=1162 PE Hub News]]> 1162 2009-09-14 10:16:25 2009-09-14 17:16:25 open open checkfree-founder-joins-comvest publish 0 0 post _edit_lock 1252948586 _edit_last 3 Womack names Talley as finance chief http://www.ethiopianreview.com/business/1167 Mon, 14 Sep 2009 17:18:08 +0000 http://www.ethiopianreview.com/business/?p=1167 Dallas Business Journal ]]> 1167 2009-09-14 10:18:08 2009-09-14 17:18:08 open open womack-names-talley-as-finance-chief publish 0 0 post _edit_lock 1252948752 _edit_last 2 Clothing Retailer rue21 Files for IPO http://www.ethiopianreview.com/business/1166 Mon, 14 Sep 2009 17:18:14 +0000 http://www.ethiopianreview.com/business/?p=1166 PE Hub News]]> 1166 2009-09-14 10:18:14 2009-09-14 17:18:14 open open clothing-retailer-rue21-files-for-ipo publish 0 0 post _edit_lock 1252948696 _edit_last 3 Survey: Slight bump in accounting, finance hiring on deck http://www.ethiopianreview.com/business/1168 Mon, 14 Sep 2009 17:19:19 +0000 http://www.ethiopianreview.com/business/?p=1168 Baltimore Business Journal ]]> 1168 2009-09-14 10:19:19 2009-09-14 17:19:19 open open survey-slight-bump-in-accounting-finance-hiring-on-deck publish 0 0 post _edit_lock 1252948760 _edit_last 2 Asahi Competing with Suntory for Orangina http://www.ethiopianreview.com/business/1171 Mon, 14 Sep 2009 17:19:39 +0000 http://www.ethiopianreview.com/business/?p=1171 PE Hub News]]> 1171 2009-09-14 10:19:39 2009-09-14 17:19:39 open open asahi-competing-with-suntory-for-orangina publish 0 0 post _edit_lock 1252948779 _edit_last 3 CSU gets $2.5M grant for study of chronic-wasting disease http://www.ethiopianreview.com/business/1174 Mon, 14 Sep 2009 17:20:00 +0000 http://www.ethiopianreview.com/business/?p=1174 Denver Business Journal]]> 1174 2009-09-14 10:20:00 2009-09-14 17:20:00 open open csu-gets-2-5m-grant-for-study-of-chronic-wasting-disease publish 0 0 post _edit_lock 1252948801 _edit_last 2 City council to take up reservoir plan http://www.ethiopianreview.com/business/1178 Mon, 14 Sep 2009 17:21:01 +0000 http://www.ethiopianreview.com/business/?p=1178 Atlanta Business Chronicle]]> 1178 2009-09-14 10:21:01 2009-09-14 17:21:01 open open city-council-to-take-up-reservoir-plan publish 0 0 post _edit_lock 1252948862 _edit_last 2 North bay vintner in talks to buy French winery http://www.ethiopianreview.com/business/1179 Mon, 14 Sep 2009 17:21:34 +0000 http://www.ethiopianreview.com/business/?p=1179 San Francisco Business Times]]> 1179 2009-09-14 10:21:34 2009-09-14 17:21:34 open open north-bay-vintner-in-talks-to-buy-french-winery publish 0 0 post _edit_lock 1252948894 _edit_last 2 Yale Endowment Slides 30% http://www.ethiopianreview.com/business/1176 Mon, 14 Sep 2009 17:21:44 +0000 http://www.ethiopianreview.com/business/?p=1176 PE Hub News]]> 1176 2009-09-14 10:21:44 2009-09-14 17:21:44 open open yale-endowment-slides-30 publish 0 0 post _edit_lock 1252948905 _edit_last 3 Monsanto cutting another 900 jobs http://www.ethiopianreview.com/business/1184 Mon, 14 Sep 2009 17:22:43 +0000 http://www.ethiopianreview.com/business/?p=1184 Monsanto Co. said it’s doubling its work force reductions and cutting another 900 jobs. In June, the seed maker said it was eliminating about 4 percent of its staff, or about 900 jobs, but announced a new target Thursday of 8 percent, or about 1,800 jobs. Of this total, about 600 jobs will be cut in the United States, including 300 in St. Louis. Most U.S. workers have been notified. The company expects the restructuring to reduce future costs by $220 million to $250 million a year, with one-third realized in fiscal 2010 and all of it realized in fiscal year 2011. Monsanto increased its restructuring reserve to $550 million to $600 million, up from a previously announced $350 million to $400 million, to support its cost-saving efforts this year and next year. Monsanto also warned Wednesday that the gross profit for its Roundup and other glyphosate-based herbicides will be lower than expected. For fiscal 2010, Monsanto expects earnings of $6.1 billion to $6.3 billion, or $3.10 to $3.30 a share. Analysts had expected $4.08 per share. Creve Coeur, Mo.-based Monsanto (NYSE: MON), led by Chairman and Chief Executive Hugh Grant, makes seeds and insect- and herbicide-resistant crops. It is one of the largest employers in St. Louis with 4,000 local employees. It has 21,700 workers worldwide. - by Kelsey Volkmann | St. Louis Business Journal]]> 1184 2009-09-14 10:22:43 2009-09-14 17:22:43 open open monsanto-cutting-another-900-jobs publish 0 0 post _edit_lock 1252948963 _edit_last 2 California's July exports lowest in six years http://www.ethiopianreview.com/business/1185 Mon, 14 Sep 2009 17:23:08 +0000 http://www.ethiopianreview.com/business/?p=1185 Sacramento Business Journal]]> 1185 2009-09-14 10:23:08 2009-09-14 17:23:08 open open californias-july-exports-lowest-in-six-years publish 0 0 post _edit_last 2 _edit_lock 1252948989 Colorado resources chief Sherman picked for USDA post http://www.ethiopianreview.com/business/1186 Mon, 14 Sep 2009 17:23:39 +0000 http://www.ethiopianreview.com/business/?p=1186 Denver Business Journal]]> 1186 2009-09-14 10:23:39 2009-09-14 17:23:39 open open colorado-resources-chief-sherman-picked-for-usda-post publish 0 0 post _edit_lock 1252949019 _edit_last 2 Bain-Backed Dollarama Files for IPO http://www.ethiopianreview.com/business/1187 Mon, 14 Sep 2009 17:23:39 +0000 http://www.ethiopianreview.com/business/?p=1187 PE Hub News ]]> 1187 2009-09-14 10:23:39 2009-09-14 17:23:39 open open bain-backed-dollarama-files-for-ipo publish 0 0 post _edit_lock 1252949020 _edit_last 3 Food info expo planned in Niagara http://www.ethiopianreview.com/business/1193 Mon, 14 Sep 2009 17:24:38 +0000 http://www.ethiopianreview.com/business/?p=1193 Business First of Buffalo]]> 1193 2009-09-14 10:24:38 2009-09-14 17:24:38 open open food-info-expo-planned-in-niagara publish 0 0 post _edit_lock 1252949079 _edit_last 2 VeraSun properties sell for $10.5M http://www.ethiopianreview.com/business/1194 Mon, 14 Sep 2009 17:25:06 +0000 http://www.ethiopianreview.com/business/?p=1194 St. Louis Business Journal]]> 1194 2009-09-14 10:25:06 2009-09-14 17:25:06 open open verasun-properties-sell-for-10-5m publish 0 0 post _edit_lock 1252949107 _edit_last 2 Carlyle Raising $3 Billion Asia Fund http://www.ethiopianreview.com/business/1199 Mon, 14 Sep 2009 17:25:28 +0000 http://www.ethiopianreview.com/business/?p=1199 PE Hub News]]> 1199 2009-09-14 10:25:28 2009-09-14 17:25:28 open open 1199 publish 0 0 post _edit_last 3 _edit_lock 1252949151 Protesters: Riverview Casino a ‘losing bet’ http://www.ethiopianreview.com/business/1195 Mon, 14 Sep 2009 17:25:33 +0000 http://www.ethiopianreview.com/business/?p=1195 St. Louis Business Journal ]]> 1195 2009-09-14 10:25:33 2009-09-14 17:25:33 open open protesters-riverview-casino-a-%e2%80%98losing-bet%e2%80%99 publish 0 0 post _edit_lock 1252949134 _edit_last 2 Condo lender Corus Bank fails http://www.ethiopianreview.com/business/1204 Mon, 14 Sep 2009 17:26:30 +0000 http://www.ethiopianreview.com/business/?p=1204 Tampa Bay Business Journal]]> 1204 2009-09-14 10:26:30 2009-09-14 17:26:30 open open condo-lender-corus-bank-fails publish 0 0 post _edit_lock 1252949254 _edit_last 2 Former Federal Reserve System Governor Randall Kroszner joins Patomak Partners http://www.ethiopianreview.com/business/1205 Mon, 14 Sep 2009 17:27:04 +0000 http://www.ethiopianreview.com/business/?p=1205 Washington Business Journal]]> 1205 2009-09-14 10:27:04 2009-09-14 17:27:04 open open former-federal-reserve-system-governor-randall-kroszner-joins-patomak-partners publish 0 0 post _edit_lock 1252949224 _edit_last 2 Asahi Says It Is Not Eyeing Orangina http://www.ethiopianreview.com/business/1207 Mon, 14 Sep 2009 17:27:18 +0000 http://www.ethiopianreview.com/business/?p=1207 PE Hub News]]> 1207 2009-09-14 10:27:18 2009-09-14 17:27:18 open open asahi-says-it-is-not-eyeing-orangina publish 0 0 post _edit_lock 1252949302 _edit_last 3 BNY Mellon enters software agreement with Microsoft http://www.ethiopianreview.com/business/1206 Mon, 14 Sep 2009 17:27:40 +0000 http://www.ethiopianreview.com/business/?p=1206 Pittsburgh Business Times ]]> 1206 2009-09-14 10:27:40 2009-09-14 17:27:40 open open bny-mellon-enters-software-agreement-with-microsoft publish 0 0 post _edit_last 2 _edit_lock 1252949261 ICF International to offer $200M in stock http://www.ethiopianreview.com/business/1215 Mon, 14 Sep 2009 17:29:48 +0000 http://www.ethiopianreview.com/business/?p=1215 - by Darlene Darcy | Washington Business Journal]]> 1215 2009-09-14 10:29:48 2009-09-14 17:29:48 open open icf-international-to-offer-200m-in-stock publish 0 0 post _edit_lock 1252949389 _edit_last 2 TPG-Backed Myer Plans $2.6 Billion IPO http://www.ethiopianreview.com/business/1213 Mon, 14 Sep 2009 17:30:16 +0000 http://www.ethiopianreview.com/business/?p=1213 PE Hub News]]> 1213 2009-09-14 10:30:16 2009-09-14 17:30:16 open open tpg-backed-myer-plans-2-6-billion-ipo publish 0 0 post _edit_last 3 _edit_lock 1252949417 LaSalle Hotel boss retires early http://www.ethiopianreview.com/business/1216 Mon, 14 Sep 2009 17:30:29 +0000 http://www.ethiopianreview.com/business/?p=1216 Washington Business Journal ]]> 1216 2009-09-14 10:30:29 2009-09-14 17:30:29 open open lasalle-hotel-boss-retires-early publish 0 0 post _edit_lock 1252949430 _edit_last 2 First Citizens buys failed Washington bank http://www.ethiopianreview.com/business/1223 Mon, 14 Sep 2009 17:31:37 +0000 http://www.ethiopianreview.com/business/?p=1223 First Citizens Bancshares Inc. has acquired the remains of a failed West Coast bank — its second such purchase in three months. The Raleigh-based bank reached a deal with Federal Deposit Insurance Corp. to assume all of the deposits and most of the assets of Lacey, Wash.-based Venture Bank. The Washington state Department of Financial Institutions closed Venture Bank at the close of business Friday because of “inadequate capital and severe loan losses,” the state agency says. State regulators put Venture Bank into the receivership of the FDIC, which arranged for First Citizens to assume Venture Bank’s deposits and buy $874 million of the bank’s assets. The FDIC said it will retain the remaining $96 million in assets for later disposition. Venture Bank’s 18 branches are reopening Monday as First Citizens branches, and all of the failed bank’s depositors will automatically become First Citizens depositors, according to the FDIC. The bank failure, the 92nd in the United States this year, will cost the Deposit Insurance Fund about $298 million. In July, First Citizens (NASDAQ:FCNCA) acquired failed California lender Temecula Valley Bank. A “loss-share” provision in that deal calls for the FDIC to cover most of the future losses on Temecula Valley’s problem loans. - By Charlotte Business Journal]]> 1223 2009-09-14 10:31:37 2009-09-14 17:31:37 open open first-citizens-buys-failed-washington-bank publish 0 0 post _edit_lock 1252949497 _edit_last 2 Virgin Mobile USA now meets NYSE listing standards http://www.ethiopianreview.com/business/1224 Mon, 14 Sep 2009 17:32:07 +0000 http://www.ethiopianreview.com/business/?p=1224 Kansas City Business Journal]]> 1224 2009-09-14 10:32:07 2009-09-14 17:32:07 open open virgin-mobile-usa-now-meets-nyse-listing-standards publish 0 0 post _edit_lock 1252949529 _edit_last 2 Report: IDFC Unit Buying BP India Wind Energy Assets http://www.ethiopianreview.com/business/1225 Mon, 14 Sep 2009 17:32:07 +0000 http://www.ethiopianreview.com/business/?p=1225 PE Hub News]]> 1225 2009-09-14 10:32:07 2009-09-14 17:32:07 open open report-idfc-unit-buying-bp-india-wind-energy-assets publish 0 0 post _edit_lock 1252949528 _edit_last 3 Avaya wins auction for Nortel's Enterprise Solutions Division http://www.ethiopianreview.com/business/1229 Mon, 14 Sep 2009 17:33:04 +0000 http://www.ethiopianreview.com/business/?p=1229 Triangle Business Journal]]> 1229 2009-09-14 10:33:04 2009-09-14 17:33:04 open open avaya-wins-auction-for-nortels-enterprise-solutions-division publish 0 0 post _edit_lock 1252949648 _edit_last 2 Canara Bank cuts home loan rates http://www.ethiopianreview.com/business/1232 Mon, 14 Sep 2009 17:34:02 +0000 http://www.ethiopianreview.com/business/?p=1232 Business Standard]]> 1232 2009-09-14 10:34:02 2009-09-14 17:34:02 open open canara-bank-cuts-home-loan-rates publish 0 0 post _edit_lock 1252949643 _edit_last 2 Introduction of repos in corp bonds in the works: RBI http://www.ethiopianreview.com/business/1233 Mon, 14 Sep 2009 17:34:44 +0000 http://www.ethiopianreview.com/business/?p=1233 May raise HTM cap RBI Deputy Governor Usha Thorat today said the central bank was looking into a proposal from some banks to increase the ceiling on bonds parked in the held-to-maturity (HTM) category to escape the mark-to-market (MTM) accounting norm. “There have been references made to us and we are examining them. When we are examining, we will definitely come out with something,” she said. At present, banks can hold government securities up to 25 per cent of net demand and time liabilities in the HTM segment. Owing to the large borrowing plan, budgeted at Rs 4,51,000 crore this year, banks are left with little room in the HTM segment, leaving them open to the risk of MTM losses on incremental purchases of securities. When banks buy government bonds, they classify them into three categories - trading, available for sale (AFS) and HTM. If a security in the trading portfolio is not traded for 90 days, it has to be shifted to AFS. But RBI expects banks to shift securities from AFS to HTM, or vice versa, at the start of the year with prior permission of the bank’s board or its investment or asset-liability committees. With HTM limit virtually exhausted, anymore buying of bonds has to be classified as AFS, for which MTM provisions would be required. Fearing MTM losses, banks have become reluctant to put securities in this category since yields are projected to rise. - By Business Standard]]> 1233 2009-09-14 10:34:44 2009-09-14 17:34:44 open open introduction-of-repos-in-corp-bonds-in-the-works-rbi publish 0 0 post _edit_lock 1252949684 _edit_last 2 Banking on parental anxiety http://www.ethiopianreview.com/business/1238 Mon, 14 Sep 2009 17:36:14 +0000 http://www.ethiopianreview.com/business/?p=1238 COSTS? Every Ulip today has four different kind of costs. Premium Allocation Charge (PAC) Product Administration Mortality Rate (Cost of Insurance cover) Fund Management Charge (FMC) There are some other minor charges as well, such as Switching, Auto rebalancing and so on. This policy must be held for a minimum of five years, as the surrender charges are high in the first five years. It is only after the fifth year that you may surrender the policy without any penalty. As you see in the table above, the premium allocation charge (PAC) in the first year is 30 per cent for premiums between Rs 12,000 and Rs24,999. The PAC from the second year onwards is 3 per cent. The PAC varies from 10-30 per cent in the first year. Above Rs 5 lakh, the PAC is 10 per cent, else it’s much higher. Only in the single premium option are there no PAC for premiums of Rs 12,000 to Rs 49,999, whereas it varies between 3-4 per cent for other amounts. FMC is quite consistent with other insurance companies, between 1-1.5 per cent. The Product Administration charge is quite low, at Rs 30 a month for higher premiums, but if you are paying a premium of Rs 12,000 per annum, then this amounts to 3 per cent of the premium paid. Overall, the policy does not offer anything unique when compared to most of the plans in the life insurance space. When it comes to life insurance, the first thing to ensure your child and family’s future is to have a substantially high cover that provides your family a safety net in the event of your untimely death. Buying a Pure Term Plan still remains the best option for your child’s future.You will do well to opt for it first, because it is cheaper and does what insurance products should do - ensure your child in case of any untimely death to you. - By Amar Pandit | Business Standard]]> 1238 2009-09-14 10:36:14 2009-09-14 17:36:14 open open banking-on-parental-anxiety publish 0 0 post _edit_lock 1252949838 _edit_last 2 Luca Destito Joins Investindustrial http://www.ethiopianreview.com/business/1237 Mon, 14 Sep 2009 17:36:53 +0000 http://www.ethiopianreview.com/business/?p=1237 PE Hub News]]> 1237 2009-09-14 10:36:53 2009-09-14 17:36:53 open open luca-destito-joins-investindustrial publish 0 0 post _edit_lock 1252949814 _edit_last 3 Surety for you, security for the bank http://www.ethiopianreview.com/business/1239 Mon, 14 Sep 2009 17:37:10 +0000 http://www.ethiopianreview.com/business/?p=1239 Business Standard]]> 1239 2009-09-14 10:37:10 2009-09-14 17:37:10 open open surety-for-you-security-for-the-bank publish 0 0 post _edit_lock 1252949831 _edit_last 2 FM assures continued support to banks http://www.ethiopianreview.com/business/1240 Mon, 14 Sep 2009 17:37:47 +0000 http://www.ethiopianreview.com/business/?p=1240 Business Standard]]> 1240 2009-09-14 10:37:47 2009-09-14 17:37:47 open open fm-assures-continued-support-to-banks publish 0 0 post _edit_lock 1252949868 _edit_last 2 Independent actuary must for insurers going public http://www.ethiopianreview.com/business/1247 Mon, 14 Sep 2009 17:38:56 +0000 http://www.ethiopianreview.com/business/?p=1247 Business Standard]]> 1247 2009-09-14 10:38:56 2009-09-14 17:38:56 open open independent-actuary-must-for-insurers-going-public publish 0 0 post _edit_lock 1252950002 _edit_last 2 ICICI Bank to seek probe into 'sabotage' acts by rivals http://www.ethiopianreview.com/business/1248 Mon, 14 Sep 2009 17:39:49 +0000 http://www.ethiopianreview.com/business/?p=1248 Press Trust Of India ]]> 1248 2009-09-14 10:39:49 2009-09-14 17:39:49 open open icici-bank-to-seek-probe-into-sabotage-acts-by-rivals publish 0 0 post _edit_lock 1252949990 _edit_last 2 PNB to sell NPAs worth over Rs 540 cr http://www.ethiopianreview.com/business/1249 Mon, 14 Sep 2009 17:40:35 +0000 http://www.ethiopianreview.com/business/?p=1249 Business Standard]]> 1249 2009-09-14 10:40:35 2009-09-14 17:40:35 open open pnb-to-sell-npas-worth-over-rs-540-cr publish 0 0 post _edit_lock 1252950035 _edit_last 2 Pressure on bond yields may ease http://www.ethiopianreview.com/business/1253 Mon, 14 Sep 2009 17:41:38 +0000 http://www.ethiopianreview.com/business/?p=1253 Call rates to remain soft The interest rates in inter-bank market are expected to remain soft on ample liquidity in the system. The systemic liquidity was comfortable and the money market rates were stable. The overnight call rate hovered in the range of 2.75-3.30 per cent.The companies and financial institutions would pay second tranche of advance tax by September 15 but this was unlikely to put any pressure on the liquidity, dealers said. The RBI absorbed Rs 1,38,760 crore under Liquidity Adjustment Facility Reverse Repo operation. Rupee may appreciate The rupee may appreciate against the dollar on surge in stock markets’ sentiments, portfolio inflows and some signs of economic recovery. Indian rupee appreciated by 0.81 per cent during this week to 48.48 against the greenback. The strongly positive data on factory output for India and China have buoyed the outlook for a global economic recovery, dealers said. Foreign Institutional Investors (FIIs) bought an average of $159.3 million of stocks daily this week compared to sale of $39.2 million per day last week. - By Business Standard]]> 1253 2009-09-14 10:41:38 2009-09-14 17:41:38 open open pressure-on-bond-yields-may-ease publish 0 0 post _edit_lock 1252950099 _edit_last 2 Abheek Barua: Preparing for recovery http://www.ethiopianreview.com/business/1254 Mon, 14 Sep 2009 17:42:18 +0000 http://www.ethiopianreview.com/business/?p=1254 Business Standard]]> 1254 2009-09-14 10:42:18 2009-09-14 17:42:18 open open abheek-barua-preparing-for-recovery publish 0 0 post _edit_lock 1252950139 _edit_last 2 Anil Ambani group lashes again on RIL gas pricing http://www.ethiopianreview.com/business/1257 Mon, 14 Sep 2009 17:43:20 +0000 http://www.ethiopianreview.com/business/?p=1257 Business Standard]]> 1257 2009-09-14 10:43:20 2009-09-14 17:43:20 open open anil-ambani-group-lashes-again-on-ril-gas-pricing publish 0 0 post _edit_lock 1252950275 _edit_last 2 Jet Airways to sell shares to institutions http://www.ethiopianreview.com/business/1258 Mon, 14 Sep 2009 17:44:05 +0000 http://www.ethiopianreview.com/business/?p=1258 Press Trust Of India ]]> 1258 2009-09-14 10:44:05 2009-09-14 17:44:05 open open jet-airways-to-sell-shares-to-institutions publish 0 0 post _edit_lock 1252950245 _edit_last 2 BPCL talks to PE investors for stake sale in Bina refinery http://www.ethiopianreview.com/business/1259 Mon, 14 Sep 2009 17:44:41 +0000 http://www.ethiopianreview.com/business/?p=1259 Business Standard]]> 1259 2009-09-14 10:44:41 2009-09-14 17:44:41 open open bpcl-talks-to-pe-investors-for-stake-sale-in-bina-refinery publish 0 0 post _edit_lock 1252950281 _edit_last 2 Airlines divided on impact of Jet deal http://www.ethiopianreview.com/business/1263 Mon, 14 Sep 2009 17:45:44 +0000 http://www.ethiopianreview.com/business/?p=1263 Business Standard]]> 1263 2009-09-14 10:45:44 2009-09-14 17:45:44 open open airlines-divided-on-impact-of-jet-deal publish 0 0 post _edit_lock 1252950408 _edit_last 2 Interface mulls $30-million carpet tiles plant in India http://www.ethiopianreview.com/business/1264 Mon, 14 Sep 2009 17:46:19 +0000 http://www.ethiopianreview.com/business/?p=1264 Business Standard]]> 1264 2009-09-14 10:46:19 2009-09-14 17:46:19 open open interface-mulls-30-million-carpet-tiles-plant-in-india publish 0 0 post _edit_lock 1252950380 _edit_last 2 Consumer durables' ad volumes dipped in Jan-July http://www.ethiopianreview.com/business/1265 Mon, 14 Sep 2009 17:46:49 +0000 http://www.ethiopianreview.com/business/?p=1265 Business Standard]]> 1265 2009-09-14 10:46:49 2009-09-14 17:46:49 open open consumer-durables-ad-volumes-dipped-in-jan-july publish 0 0 post _edit_lock 1252950410 _edit_last 2 ESPN signs Rs 500-crore mega-ad deal http://www.ethiopianreview.com/business/1270 Mon, 14 Sep 2009 17:47:51 +0000 http://www.ethiopianreview.com/business/?p=1270 Business Standard]]> 1270 2009-09-14 10:47:51 2009-09-14 17:47:51 open open espn-signs-rs-500-crore-mega-ad-deal publish 0 0 post _edit_lock 1252950594 _edit_last 2 Mineral traders seek issue of transit pass, renewal of license http://www.ethiopianreview.com/business/1271 Mon, 14 Sep 2009 17:48:20 +0000 http://www.ethiopianreview.com/business/?p=1271 Business Standard]]> 1271 2009-09-14 10:48:20 2009-09-14 17:48:20 open open mineral-traders-seek-issue-of-transit-pass-renewal-of-license publish 0 0 post _edit_lock 1252950624 _edit_last 2 OMFED to sell low fat skimmed milk http://www.ethiopianreview.com/business/1272 Mon, 14 Sep 2009 17:48:43 +0000 http://www.ethiopianreview.com/business/?p=1272 Business Standard]]> 1272 2009-09-14 10:48:43 2009-09-14 17:48:43 open open omfed-to-sell-low-fat-skimmed-milk publish 0 0 post _edit_lock 1252950586 _edit_last 2 Land acquisition hassles may delay TSIL mining project http://www.ethiopianreview.com/business/1276 Mon, 14 Sep 2009 17:52:03 +0000 http://www.ethiopianreview.com/business/?p=1276 Business Standard]]> 1276 2009-09-14 10:52:03 2009-09-14 17:52:03 open open land-acquisition-hassles-may-delay-tsil-mining-project publish 0 0 post _edit_lock 1252950788 _edit_last 2 Award of arbitrator upheld http://www.ethiopianreview.com/business/1277 Mon, 14 Sep 2009 17:52:42 +0000 http://www.ethiopianreview.com/business/?p=1277 Contractor’s appeal against Coal India dismissed In another appeal dealing with arbitration, Coal Linker vs Coal India Ltd, delivered last week, the SC dismissed the appeal of the contractor against the judgement of the Calcutta high court. The agreement was for transporting coal/coke by road to CIL’s stockyard in Kanpur and for operation of the yard. When disputes arose, an arbitrator was appointed and he gave an award in favour of the contractor. The dispute was over payment of interest from the date of award till the date of the decree. The award did not grant it, but the executing court asked CIL to pay up. Power supplier’s demand shot down The SC last week quashed the judgement of the Uttarakhand HC in the dispute between the state Power Corporation and ASP Sealing Products Ltd and allowed the former to encash the bank guarantee for the demand for minimum charges. The firm ran a PVC and rubber factory in Rudrapur and consumed power according to an agreement with the corporation. Later, the supply was discontinued at the request of the firm. However, the corporation demanded minimum charges for six months. The firm challenged it in the high court, which quashed the demand. On appeal, the SC ruled that the firm was liable to pay the minimum charges. Floor coverings’ manufacturers Manufacturers of floor coverings got excise relief last week when the SC dismissed the appeal of the Commissioner of Central Excise against a decision of the tribunal. In the case, Commissioner vs M/s UNI Products Ltd, the revenue authorities demanded 30 per cent in excise duty on the floor coverings. The manufacturers argued they were making non-woven coverings where the basic fabric is jute. The authorities maintained the exposed surface was made of synthetic textile material and hence the goods were not non-woven jute floor coverings. The tribunal accepted the manufacturers’ view, which was upheld by the SC. Carpet makers get reprieve The Commissioner of Central Excise lost another case against carpet manufacturers last week. The carpets were interlaced with yarns of three types: jute, cotton and polypropylene. The firms maintained jute was the predominant component and hence the duty demanded by the revenue authorities was not applicable. The authorities, on the other hand, argued the surface of the carpets was entirely of polypropylene and hence could not be classified as jute carpets. - By Business Standard]]> 1277 2009-09-14 10:52:42 2009-09-14 17:52:42 open open award-of-arbitrator-upheld publish 0 0 post _edit_lock 1252950763 _edit_last 2 State to announce new paddy procurement policy soon http://www.ethiopianreview.com/business/1278 Mon, 14 Sep 2009 17:53:09 +0000 http://www.ethiopianreview.com/business/?p=1278 Business Standard]]> 1278 2009-09-14 10:53:09 2009-09-14 17:53:09 open open state-to-announce-new-paddy-procurement-policy-soon publish 0 0 post _edit_lock 1252950789 _edit_last 2 Light Combat Helicopter struggles to slim down http://www.ethiopianreview.com/business/1282 Mon, 14 Sep 2009 17:54:23 +0000 http://www.ethiopianreview.com/business/?p=1282 Business Standard]]> 1282 2009-09-14 10:54:23 2009-09-14 17:54:23 open open light-combat-helicopter-struggles-to-slim-down publish 0 0 post _edit_lock 1252950928 _edit_last 2 China may approach WTO against Obama's tyre import tariffs http://www.ethiopianreview.com/business/1283 Mon, 14 Sep 2009 17:55:12 +0000 http://www.ethiopianreview.com/business/?p=1283 Tyre production “By taking this unprecedented action, the Obama administration is now at odds with its own public statements about refraining from increasing tariffs,” Vic DeIorio, executive vice president of GITI Tire in the US, said in a statement. “This decision will cost many more American jobs than it will create.” The US duties on Chinese tyres likely won’t spark a trade war, White House spokesman Robert Gibbs told reporters in Minneapolis today. Obama is in Minneapolis with Health and Human Services Secretary Kathleen Sebelius drumming up support for his health-care reform efforts. “For trade to work for everybody it has to be based on fairness and rules,” Gibbs said. “We’re simply enforcing those rules and would expect the Chinese to understand those rules.” Four US companies have operations in tyre production in China and they account for two-thirds of exports to the US, and the tariffs will have a direct impact on these companies, China’s commerce ministry said. Chinese tyre exports The US decision of tariff imposition “lacks of support from factual evidence,” according to the ministry. China’s tyre exports to the US fell by 16 per cent in the first half of 2009 from a year earlier, after a gain of 2.2 per cent in the whole of 2008, it said. The independent US International Trade Commission recommended that Obama impose duties for three years, starting at 55 per cent, to counter a tripling of tyre imports from China from 2004 to 2008. The steelworkers union, which represents 15,000 employees at 13 tyre plants in the US, said cheap imports were forcing factories to close, eliminating jobs. “These remedies are a necessary response to the harm done to U.S. workers and businesses,” US Trade Representative Ron Kirk said in a statement. “Enforcing trade laws is key to maintaining an open and free trading system.” Democratic Representative Louise Slaughter of New York said the decision was “the first big test of whether President Obama was going to side with the interest of big corporations and the US Chamber of Commerce or with workers.” - By Bloomberg]]> 1283 2009-09-14 10:55:12 2009-09-14 17:55:12 open open china-may-approach-wto-against-obamas-tyre-import-tariffs publish 0 0 post _edit_lock 1252950913 _edit_last 2 High alert along India-China border in Uttarakhand http://www.ethiopianreview.com/business/1284 Mon, 14 Sep 2009 17:55:48 +0000 http://www.ethiopianreview.com/business/?p=1284 Business Standard]]> 1284 2009-09-14 10:55:48 2009-09-14 17:55:48 open open high-alert-along-india-china-border-in-uttarakhand publish 0 0 post _edit_lock 1252950949 _edit_last 2 Sonia to visit Mumbai today http://www.ethiopianreview.com/business/1289 Mon, 14 Sep 2009 17:56:48 +0000 http://www.ethiopianreview.com/business/?p=1289 Business Standard]]> 1289 2009-09-14 10:56:48 2009-09-14 17:56:48 open open sonia-to-visit-mumbai-today publish 0 0 post _edit_lock 1252951072 _edit_last 2 India accused of 'violating' Chinese diplomatic rights http://www.ethiopianreview.com/business/1290 Mon, 14 Sep 2009 17:57:21 +0000 http://www.ethiopianreview.com/business/?p=1290 Press Trust Of India]]> 1290 2009-09-14 10:57:21 2009-09-14 17:57:21 open open india-accused-of-violating-chinese-diplomatic-rights publish 0 0 post _edit_lock 1252951042 _edit_last 2 'There is no dispute that we are going into uncharted territories ...but the benefits make it worth it' http://www.ethiopianreview.com/business/1291 Mon, 14 Sep 2009 17:58:03 +0000 http://www.ethiopianreview.com/business/?p=1291 Business Standard]]> 1291 2009-09-14 10:58:03 2009-09-14 17:58:03 open open there-is-no-dispute-that-we-are-going-into-uncharted-territories-but-the-benefits-make-it-worth-it publish 0 0 post _edit_lock 1252951085 _edit_last 2 FTP allows EoUs to procure finished goods for consolidation http://www.ethiopianreview.com/business/1296 Mon, 14 Sep 2009 17:59:26 +0000 http://www.ethiopianreview.com/business/?p=1296 Business Standard]]> 1296 2009-09-14 10:59:26 2009-09-14 17:59:26 open open ftp-allows-eous-to-procure-finished-goods-for-consolidation publish 0 0 post _edit_lock 1252951230 _edit_last 2 WTO talks resume in Geneva today http://www.ethiopianreview.com/business/1297 Mon, 14 Sep 2009 18:00:10 +0000 http://www.ethiopianreview.com/business/?p=1297 Press Trust Of India]]> 1297 2009-09-14 11:00:10 2009-09-14 18:00:10 open open wto-talks-resume-in-geneva-today publish 0 0 post _edit_lock 1252951211 _edit_last 2 Government employees to protest http://www.ethiopianreview.com/business/1298 Mon, 14 Sep 2009 18:00:33 +0000 http://www.ethiopianreview.com/business/?p=1298 Business Standard]]> 1298 2009-09-14 11:00:33 2009-09-14 18:00:33 open open government-employees-to-protest publish 0 0 post _edit_lock 1252951234 _edit_last 2 School connectivity project gets Centre's approval http://www.ethiopianreview.com/business/1302 Mon, 14 Sep 2009 18:01:26 +0000 http://www.ethiopianreview.com/business/?p=1302 Business Standard]]> 1302 2009-09-14 11:01:26 2009-09-14 18:01:26 open open school-connectivity-project-gets-centres-approval publish 0 0 post _edit_lock 1252951349 _edit_last 2 Device maker aims to soften your water http://www.ethiopianreview.com/business/1303 Mon, 14 Sep 2009 18:02:34 +0000 http://www.ethiopianreview.com/business/?p=1303 Business Standard]]> 1303 2009-09-14 11:02:34 2009-09-14 18:02:34 open open device-maker-aims-to-soften-your-water publish 0 0 post _edit_lock 1252951355 _edit_last 2 Indian firms prove reluctant to trade their carbon credits http://www.ethiopianreview.com/business/1304 Mon, 14 Sep 2009 18:03:25 +0000 http://www.ethiopianreview.com/business/?p=1304 Business Standard]]> 1304 2009-09-14 11:03:25 2009-09-14 18:03:25 open open indian-firms-prove-reluctant-to-trade-their-carbon-credits publish 0 0 post _edit_lock 1252951406 _edit_last 2 Cipla in pact with Swiss major to develop anti-allergy drug http://www.ethiopianreview.com/business/1308 Mon, 14 Sep 2009 18:04:22 +0000 http://www.ethiopianreview.com/business/?p=1308 Business Standard]]> 1308 2009-09-14 11:04:22 2009-09-14 18:04:22 open open cipla-in-pact-with-swiss-major-to-develop-anti-allergy-drug publish 0 0 post _edit_lock 1252951525 _edit_last 2 Sterlite tops Grupo's offer price in Asarco bid war http://www.ethiopianreview.com/business/1309 Mon, 14 Sep 2009 18:04:58 +0000 http://www.ethiopianreview.com/business/?p=1309 Business Standard]]> 1309 2009-09-14 11:04:58 2009-09-14 18:04:58 open open sterlite-tops-grupos-offer-price-in-asarco-bid-war publish 0 0 post _edit_lock 1252951499 _edit_last 2 Jet pilots, management hover in no-fly zone http://www.ethiopianreview.com/business/1310 Mon, 14 Sep 2009 18:05:37 +0000 http://www.ethiopianreview.com/business/?p=1310 Business Standard]]> 1310 2009-09-14 11:05:37 2009-09-14 18:05:37 open open jet-pilots-management-hover-in-no-fly-zone publish 0 0 post _edit_lock 1252951538 _edit_last 2 Jet pilots call off agitation http://www.ethiopianreview.com/business/1314 Mon, 14 Sep 2009 18:06:27 +0000 http://www.ethiopianreview.com/business/?p=1314 Business Standard]]> 1314 2009-09-14 11:06:27 2009-09-14 18:06:27 open open jet-pilots-call-off-agitation publish 0 0 post _edit_lock 1252951651 _edit_last 2 Housewives' budget deficit widens http://www.ethiopianreview.com/business/1315 Mon, 14 Sep 2009 18:07:16 +0000 http://www.ethiopianreview.com/business/?p=1315 Business Standard]]> 1315 2009-09-14 11:07:16 2009-09-14 18:07:16 open open housewives-budget-deficit-widens publish 0 0 post _edit_lock 1252951636 _edit_last 2 Vijender Singh's Percept deal runs into trouble http://www.ethiopianreview.com/business/1316 Mon, 14 Sep 2009 18:07:53 +0000 http://www.ethiopianreview.com/business/?p=1316 Business Standard]]> 1316 2009-09-14 11:07:53 2009-09-14 18:07:53 open open vijender-singhs-percept-deal-runs-into-trouble publish 0 0 post _edit_lock 1252951673 _edit_last 2 Economic downturn sees an upsurge in labour unrest http://www.ethiopianreview.com/business/1320 Mon, 14 Sep 2009 18:08:56 +0000 http://www.ethiopianreview.com/business/?p=1320 Business Standard]]> 1320 2009-09-14 11:08:56 2009-09-14 18:08:56 open open economic-downturn-sees-an-upsurge-in-labour-unrest publish 0 0 post _edit_lock 1252951801 _edit_last 2 Rlys PPP projects go off track http://www.ethiopianreview.com/business/1321 Mon, 14 Sep 2009 18:09:25 +0000 http://www.ethiopianreview.com/business/?p=1321 Business Standard]]> 1321 2009-09-14 11:09:25 2009-09-14 18:09:25 open open rlys-ppp-projects-go-off-track publish 0 0 post _edit_lock 1252951765 _edit_last 2 Fund valuations head south http://www.ethiopianreview.com/business/1322 Mon, 14 Sep 2009 18:10:07 +0000 http://www.ethiopianreview.com/business/?p=1322 Business Standard]]> 1322 2009-09-14 11:10:07 2009-09-14 18:10:07 open open fund-valuations-head-south publish 0 0 post _edit_lock 1252951809 _edit_last 2 Raj of many roles http://www.ethiopianreview.com/business/1327 Mon, 14 Sep 2009 18:11:14 +0000 http://www.ethiopianreview.com/business/?p=1327 Business Standard]]> 1327 2009-09-14 11:11:14 2009-09-14 18:11:14 open open raj-of-many-roles publish 0 0 post _edit_lock 1252951938 _edit_last 2 Win some, lose some http://www.ethiopianreview.com/business/1328 Mon, 14 Sep 2009 18:11:47 +0000 http://www.ethiopianreview.com/business/?p=1328 Business Standard]]> 1328 2009-09-14 11:11:47 2009-09-14 18:11:47 open open win-some-lose-some publish 0 0 post _edit_lock 1252951908 _edit_last 2 'I won't let success go to my head' http://www.ethiopianreview.com/business/1329 Mon, 14 Sep 2009 18:12:26 +0000 http://www.ethiopianreview.com/business/?p=1329 Business Standard]]> 1329 2009-09-14 11:12:26 2009-09-14 18:12:26 open open i-wont-let-success-go-to-my-head publish 0 0 post _edit_lock 1252951947 _edit_last 2 Jaipur's jewel http://www.ethiopianreview.com/business/1333 Mon, 14 Sep 2009 18:13:20 +0000 http://www.ethiopianreview.com/business/?p=1333 Business Standard]]> 1333 2009-09-14 11:13:20 2009-09-14 18:13:20 open open jaipurs-jewel publish 0 0 post _edit_lock 1252952063 _edit_last 2 Learning through play http://www.ethiopianreview.com/business/1334 Mon, 14 Sep 2009 18:13:55 +0000 http://www.ethiopianreview.com/business/?p=1334 Business Standard]]> 1334 2009-09-14 11:13:55 2009-09-14 18:13:55 open open learning-through-play publish 0 0 post _edit_lock 1252952036 _edit_last 2 Green designs http://www.ethiopianreview.com/business/1335 Mon, 14 Sep 2009 18:14:35 +0000 http://www.ethiopianreview.com/business/?p=1335 Business Standard]]> 1335 2009-09-14 11:14:35 2009-09-14 18:14:35 open open green-designs publish 0 0 post _edit_lock 1252952076 _edit_last 2 Cold feet http://www.ethiopianreview.com/business/1339 Mon, 14 Sep 2009 18:15:30 +0000 http://www.ethiopianreview.com/business/?p=1339 Business Standard]]> 1339 2009-09-14 11:15:30 2009-09-14 18:15:30 open open cold-feet publish 0 0 post _edit_lock 1252952195 _edit_last 2 Right on the cue http://www.ethiopianreview.com/business/1340 Mon, 14 Sep 2009 18:16:02 +0000 http://www.ethiopianreview.com/business/?p=1340 Business Standard]]> 1340 2009-09-14 11:16:02 2009-09-14 18:16:02 open open right-on-the-cue publish 0 0 post _edit_lock 1252952164 _edit_last 2 'Disneyland' for football fans http://www.ethiopianreview.com/business/1341 Mon, 14 Sep 2009 18:16:32 +0000 http://www.ethiopianreview.com/business/?p=1341 Business Standard]]> 1341 2009-09-14 11:16:32 2009-09-14 18:16:32 open open disneyland-for-football-fans publish 0 0 post _edit_lock 1252952192 _edit_last 2 The sweet truth about coconuts http://www.ethiopianreview.com/business/1345 Mon, 14 Sep 2009 18:26:11 +0000 http://www.ethiopianreview.com/business/?p=1345 Business Standard]]> 1345 2009-09-14 11:26:11 2009-09-14 18:26:11 open open the-sweet-truth-about-coconuts publish 0 0 post _edit_last 2 _edit_lock 1252952838 Bhupesh Bhandari: Are celebrities worth their price? http://www.ethiopianreview.com/business/1346 Mon, 14 Sep 2009 18:26:44 +0000 http://www.ethiopianreview.com/business/?p=1346 Business Standard]]> 1346 2009-09-14 11:26:44 2009-09-14 18:26:44 open open bhupesh-bhandari-are-celebrities-worth-their-price publish 0 0 post _edit_lock 1252952806 _edit_last 2 IIMs face many hurdles in mentoring newer ones http://www.ethiopianreview.com/business/1347 Mon, 14 Sep 2009 18:27:19 +0000 http://www.ethiopianreview.com/business/?p=1347 Business Standard]]> 1347 2009-09-14 11:27:19 2009-09-14 18:27:19 open open iims-face-many-hurdles-in-mentoring-newer-ones publish 0 0 post _edit_lock 1252952839 _edit_last 2 IIM-Shillong's sports prog from Oct http://www.ethiopianreview.com/business/1351 Mon, 14 Sep 2009 18:28:09 +0000 http://www.ethiopianreview.com/business/?p=1351 Business Standard]]> 1351 2009-09-14 11:28:09 2009-09-14 18:28:09 open open iim-shillongs-sports-prog-from-oct publish 0 0 post _edit_lock 1252952952 _edit_last 2 UK's Imperial College keen to set up campus in India http://www.ethiopianreview.com/business/1352 Mon, 14 Sep 2009 18:28:39 +0000 http://www.ethiopianreview.com/business/?p=1352 Business Standard]]> 1352 2009-09-14 11:28:39 2009-09-14 18:28:39 open open uks-imperial-college-keen-to-set-up-campus-in-india publish 0 0 post _edit_lock 1252952920 _edit_last 2 IIM-A guides schools, academia to fight swine flu http://www.ethiopianreview.com/business/1353 Mon, 14 Sep 2009 18:29:09 +0000 http://www.ethiopianreview.com/business/?p=1353 Business Standard]]> 1353 2009-09-14 11:29:09 2009-09-14 18:29:09 open open iim-a-guides-schools-academia-to-fight-swine-flu publish 0 0 post _edit_lock 1252952950 _edit_last 2 Two-day Nasscom meet on global economy http://www.ethiopianreview.com/business/1357 Mon, 14 Sep 2009 18:30:08 +0000 http://www.ethiopianreview.com/business/?p=1357 Business Standard]]> 1357 2009-09-14 11:30:08 2009-09-14 18:30:08 open open two-day-nasscom-meet-on-global-economy publish 0 0 post _edit_lock 1252953071 _edit_last 2 Lakme's makeover http://www.ethiopianreview.com/business/1358 Mon, 14 Sep 2009 18:30:46 +0000 http://www.ethiopianreview.com/business/?p=1358 Business Standard]]> 1358 2009-09-14 11:30:46 2009-09-14 18:30:46 open open lakmes-makeover publish 0 0 post _edit_lock 1252953047 _edit_last 2 Not creative if... http://www.ethiopianreview.com/business/1359 Mon, 14 Sep 2009 18:31:22 +0000 http://www.ethiopianreview.com/business/?p=1359 Business Standard]]> 1359 2009-09-14 11:31:22 2009-09-14 18:31:22 open open not-creative-if publish 0 0 post _edit_lock 1252953087 _edit_last 2 Touch, feel and go http://www.ethiopianreview.com/business/1364 Mon, 14 Sep 2009 18:32:10 +0000 http://www.ethiopianreview.com/business/?p=1364 Business Standard]]> 1364 2009-09-14 11:32:10 2009-09-14 18:32:10 open open touch-feel-and-go publish 0 0 post _edit_lock 1252953131 _edit_last 2 IIMs give 10 days to edit CAT applications http://www.ethiopianreview.com/business/1365 Mon, 14 Sep 2009 18:32:44 +0000 http://www.ethiopianreview.com/business/?p=1365 Business Standard]]> 1365 2009-09-14 11:32:44 2009-09-14 18:32:44 open open iims-give-10-days-to-edit-cat-applications publish 0 0 post _edit_lock 1252953166 _edit_last 2 Northrop keen to nurture Indian partnerships http://www.ethiopianreview.com/business/1368 Mon, 14 Sep 2009 18:33:25 +0000 http://www.ethiopianreview.com/business/?p=1368 Business Standard]]> 1368 2009-09-14 11:33:25 2009-09-14 18:33:25 open open northrop-keen-to-nurture-indian-partnerships publish 0 0 post _edit_lock 1252953206 _edit_last 2 Solar power subsidy enthusing investors http://www.ethiopianreview.com/business/1370 Mon, 14 Sep 2009 18:34:01 +0000 http://www.ethiopianreview.com/business/?p=1370 Business Standard]]> 1370 2009-09-14 11:34:01 2009-09-14 18:34:01 open open solar-power-subsidy-enthusing-investors publish 0 0 post _edit_lock 1252953242 _edit_last 2 Steely move http://www.ethiopianreview.com/business/1372 Mon, 14 Sep 2009 18:35:21 +0000 http://www.ethiopianreview.com/business/?p=1372 The company Uttam Galva Steels, a leading domestic producer of value-added steel, procures raw material like hot rolled coils (HRC) from primary steel producers and processes it to make value-added products such as cold rolled steel, galvanised products and colour-coated coils and sheets. These products are used in the auto industry, consumer durables and engineering products among others, and yield higher prices compared to the traditional steel products or crude steel. Synergies Uttam Galva Steels currently has a capacity to produce one million tonnes of value-added steel for which it depends on other players for its raw material requirements, mainly sourced from overseas, including from players like ArcelorMittal. According to estimates, over 50 per cent of Uttam Galva’s raw requirements are sourced from ArcelorMittal, which is the world’s largest steel making company. With this deal, Uttam Galva will stand to gain as it is not a fully integrated player. “Our company will benefit due to the access to secured and timely supply of raw material and higher technologies required for value-added products,” says Ankit Miglani, director, Uttam Galva Steels. The last few years have been critical for non-integrated steel players, given that the management of prices, raw material supplies and inventory has been difficult. Additionally, since large steel companies are getting inclined to manufacture and sell their own value-added products, it has resulted in increased competition for players like Uttam Galva. Thus, its association with ArcelorMittal should help in combating the emerging competition. Analysts believe this deal will also help ArcelorMittal in many ways. “For ArcelorMittal, it is a low cost acquisition which will provide ready access to existing clients in the value-added space in international and domestic markets,” says Deven Choksey, managing director, KR Choksey Shares and Securities. Uttam Galva generates about 60 per cent of its revenues from the export market by supplying its products to customers in more than 143 countries, including the US and European markets, where it is already an established player with its products approved by major international companies. While commenting on the domestic market strategy, Choksey adds, “As the demand for value-added steel is growing in India and expected to grow even higher in the years to come, the deal with Uttam Galva will provide ArcelorMittal a platform in India.” Here, analysts also believe, given that ArcelorMittal is finding difficult to establish its presence in the Indian markets due to the slow progress regarding the acquisition of mines and land, this deal could help in exploring the opportunities and in establishing a manufacturing base early in the Indian market. Beyond the deal Although the deal is considered to be favourable for both the companies, the market is also reading beyond the fine print. Questions like what purpose will this one million tonne capacity (Uttam Galva’s current capacity) and a small equity investment serve for a company like ArcelorMittal, which is very large in scale. “Obviously, ArcelorMittal is not looking for one million tonne of capacity. For them it is a low cost acquisition and now they can increase the capacity gradually to higher levels,” says Choksey. Such hopes if they materialise, could have a bearing on the company’s financials as well as justify current stock valuations, which look expensive. “For the long term it is too early to say. But, if tomorrow ArcelorMittal says that they we will acquire the entire stake in the company and take the current capacity to four million tonne then the things will definitely change" says investment advisor, SP Tulsian of sptulsian.com. Conclusion While it is too early to say what plans the company and its promoters have store, investors may be well off in keeping away from the stock. At Rs 133, the company’s market capitalisation works out to Rs 1,652 crore which along with the Rs 1,410 crore debt translates into an enterprise value of Rs 3,062.9 crore. The latter is almost 8.5 times the company’s reported EBIDTA for 2008-09. Even on the basis of PE multiple, the stock is currently trading at 15 times the estimated 2008-09 earnings. Further, even if the next year’s EPS is assumed to grow at 25 per cent on the back of higher capacity utilisation and better realisations, the PE still does not seem to be attractive at 12.5 times. “I think, at this price one should get out of the stock because there are better alternatives available in the market,” says Choksey. Overall, there could be many synergies and advantages for both companies. However, most of the positives are already factored in the prices. The triggers in the long-run could be further clarity on the future strategy and plans of both the companies. - By Jitendra Kumar Gupta | Business Standard]]> 1372 2009-09-14 11:35:21 2009-09-14 18:35:21 open open steely-move publish 0 0 post _edit_lock 1252953384 _edit_last 2 'You should always play the contrarian' http://www.ethiopianreview.com/business/1373 Mon, 14 Sep 2009 18:35:56 +0000 http://www.ethiopianreview.com/business/?p=1373 Business Standard]]> 1373 2009-09-14 11:35:56 2009-09-14 18:35:56 open open you-should-always-play-the-contrarian publish 0 0 post _edit_lock 1252953357 _edit_last 2 Yet to sail http://www.ethiopianreview.com/business/1374 Mon, 14 Sep 2009 18:36:38 +0000 http://www.ethiopianreview.com/business/?p=1374 Scaling up Since its shipbuilding facilities are under construction, it reported meagre revenues of Rs 6.17 crore and net profit of Rs 4.72 crore in 2008-09. But, its current order book of Rs 4,700 crore, with an average delivery period of about two years, provides an indication of things to come. To execute work of higher magnitude, the company is constructing a shipyard at Gujarat. The facility has become partly operational since April 2009 and the company is currently constructing four vessels. This facility is expected to be fully operational by end-October 2009. And, upon completion it will emerge as India’s largest facility with a capacity to build 2-3 ships of about 400,000 dead weight tonne (DWT) capacity at any given time, providing the company scale to build large vessels in future. Besides, the company will also have fabrication capacity of 1,44,000 tonne of steel, which are significantly large and complement its shipbuilding operations. For instance, the company is currently having orders for 22 Panamax vessels, wherein the average value works out to about Rs 200 crore each. Assuming that one Panamax vessel of 75,000 DWT requires 12,500 tonnes of steel, the current steel fabrication capacity is enough for constructing about 11-12 Panamax vessels. Sea of opportunities Large capacities also mean that the company requires more business to fully utilise its capacities. This is also a reason that the company is eying opportunities in the defence and offshore segments. It is getting inquiries from the defence sector and has already bid for orders worth Rs 7,000 crore. According to management, the opportunity in the defence sector is about $40 billion (about Rs 194,000 crore) over the next five years, given the indigenous programme of the Indian defence sector. The company can capitalise on this emerging opportunity as there are few domestic player in the country with such a large scale facility and expertise. Pipavav Shipyard also eyeing opportunities in the domestic offshore and oil & gas segments on the back of increased capex by companies like Reliance Industries in KG Basin and ONGC. The company has already got notification (acknowledgement of bid, but order not issued yet) for construction of 12 OSVs worth Rs 535.4 crore to be delivered in the year 2011. Pipavav is also looking to leverage its fabrication capability to undertake works relating to ship repairing of very large container carriers (VLCCs) and off-shore support vessels (OSVs) as well as naval, coast guard and others such as LNG carriers, which are largely sent for repairing outside India. The company will also explore opportunities for building equipment for thermal and nuclear power plants. Forging alliances To tap these opportunities, the company will leverage the experience and technical expertise of its co-promoters, Punj Lloyd, which would help it in pre-qualifying as a bidder for offshore related projects. Punj Lloyd already undertakes EPC work of the oil and gas sector, including construction of offshore platforms, and has agreed to conduct all its offshore business (excluding construction and fabrication of sub-sea pipelines) in India through Pipavav Shipyard. Besides, the company also has agreements with Korean ship design consulting firm, KOMAC, which will help in design, drawings, procurement support, machinery and equipment. Additionally, its agreement with PILS Company of South Korea, a procurement and logistics firm, and another technical assistance agreement with SembCorp (a Punj group company), which operates shipyards and offshore construction and fabrication facilities in Singapore, should prove helpful. - By Jitendra Kumar Gupta | Business Standard]]> 1374 2009-09-14 11:36:38 2009-09-14 18:36:38 open open yet-to-sail publish 0 0 post _edit_lock 1252953402 _edit_last 2 A game change for mutual funds http://www.ethiopianreview.com/business/1379 Mon, 14 Sep 2009 18:37:54 +0000 http://www.ethiopianreview.com/business/?p=1379 Business Standard]]> 1379 2009-09-14 11:37:54 2009-09-14 18:37:54 open open a-game-change-for-mutual-funds publish 0 0 post _edit_lock 1252955701 _edit_last 2 Head and shoulder http://www.ethiopianreview.com/business/1380 Mon, 14 Sep 2009 18:38:27 +0000 http://www.ethiopianreview.com/business/?p=1380 Business Standard]]> 1380 2009-09-14 11:38:27 2009-09-14 18:38:27 open open head-and-shoulder publish 0 0 post _edit_lock 1252955677 _edit_last 2 Domestic air traffic stabilises http://www.ethiopianreview.com/business/1381 Mon, 14 Sep 2009 19:41:43 +0000 http://www.ethiopianreview.com/business/?p=1381 Press Trust of India ]]> 1381 2009-09-14 12:41:43 2009-09-14 19:41:43 open open domestic-air-traffic-stabilises publish 0 0 post _edit_lock 1252957596 _edit_last 2 Low volatility, early expiry http://www.ethiopianreview.com/business/1385 Mon, 14 Sep 2009 19:43:32 +0000 http://www.ethiopianreview.com/business/?p=1385 Business Standard]]> 1385 2009-09-14 12:43:32 2009-09-14 19:43:32 open open low-volatility-early-expiry publish 0 0 post _edit_lock 1252957413 _edit_last 2 'Mindset differentiates the good fund manager' http://www.ethiopianreview.com/business/1389 Mon, 14 Sep 2009 19:45:35 +0000 http://www.ethiopianreview.com/business/?p=1389 Business Standard]]> 1389 2009-09-14 12:45:35 2009-09-14 19:45:35 open open mindset-differentiates-the-good-fund-manager publish 0 0 post _edit_lock 1252957536 _edit_last 2 Govt to relax norms for setting up medical colleges http://www.ethiopianreview.com/business/1386 Mon, 14 Sep 2009 19:46:05 +0000 http://www.ethiopianreview.com/business/?p=1386 Press Trust of India ]]> 1386 2009-09-14 12:46:05 2009-09-14 19:46:05 open open govt-to-relax-norms-for-setting-up-medical-colleges publish 0 0 post _edit_lock 1252957566 _edit_last 2 ZTE forays into Indian retail handset mkt; unveils 5 handset http://www.ethiopianreview.com/business/1393 Mon, 14 Sep 2009 19:47:25 +0000 http://www.ethiopianreview.com/business/?p=1393 Business Standard]]> 1393 2009-09-14 12:47:25 2009-09-14 19:47:25 open open zte-forays-into-indian-retail-handset-mkt-unveils-5-handset publish 0 0 post _edit_lock 1252957709 _edit_last 2 Plan panel sees strong growth in 2nd half;GDP may exceed 6.3% http://www.ethiopianreview.com/business/1394 Mon, 14 Sep 2009 19:47:55 +0000 http://www.ethiopianreview.com/business/?p=1394 Business Standard]]> 1394 2009-09-14 12:47:55 2009-09-14 19:47:55 open open plan-panel-sees-strong-growth-in-2nd-halfgdp-may-exceed-6-3 publish 0 0 post _edit_lock 1252957676 _edit_last 2 NMDC-SIIL merger likely by December http://www.ethiopianreview.com/business/1395 Mon, 14 Sep 2009 19:48:27 +0000 http://www.ethiopianreview.com/business/?p=1395 Press Trust of India ]]> 1395 2009-09-14 12:48:27 2009-09-14 19:48:27 open open nmdc-siil-merger-likely-by-december publish 0 0 post _edit_lock 1252957708 _edit_last 2 Companies can pay stamp duties online: MCA http://www.ethiopianreview.com/business/1399 Mon, 14 Sep 2009 19:49:21 +0000 http://www.ethiopianreview.com/business/?p=1399 Press Trust of India]]> 1399 2009-09-14 12:49:21 2009-09-14 19:49:21 open open companies-can-pay-stamp-duties-online-mca publish 0 0 post _edit_lock 1252957762 _edit_last 2 Listed firms CFO need not be a CA: Sebi committee http://www.ethiopianreview.com/business/1400 Mon, 14 Sep 2009 19:49:48 +0000 http://www.ethiopianreview.com/business/?p=1400 Press Trust of India]]> 1400 2009-09-14 12:49:48 2009-09-14 19:49:48 open open listed-firms-cfo-need-not-be-a-ca-sebi-committee publish 0 0 post _edit_lock 1252957789 _edit_last 2 Avaya agrees to buy Nortel's enterprise biz for $915 mn http://www.ethiopianreview.com/business/1401 Mon, 14 Sep 2009 19:50:08 +0000 http://www.ethiopianreview.com/business/?p=1401 Press Trust of India]]> 1401 2009-09-14 12:50:08 2009-09-14 19:50:08 open open avaya-agrees-to-buy-nortels-enterprise-biz-for-915-mn publish 0 0 post _edit_lock 1252957808 _edit_last 2 BBC mulls partly sale of commercial arm: report http://www.ethiopianreview.com/business/1405 Mon, 14 Sep 2009 19:53:06 +0000 http://www.ethiopianreview.com/business/?p=1405 Press Trust of India]]> 1405 2009-09-14 12:53:06 2009-09-14 19:53:06 open open bbc-mulls-partly-sale-of-commercial-arm-report publish 0 0 post _edit_lock 1252958052 _edit_last 2 Oil India IPO price fixed at Rs 1,050/share http://www.ethiopianreview.com/business/1406 Mon, 14 Sep 2009 19:53:39 +0000 http://www.ethiopianreview.com/business/?p=1406 Press Trust of India]]> 1406 2009-09-14 12:53:39 2009-09-14 19:53:39 open open oil-india-ipo-price-fixed-at-rs-1050share publish 0 0 post _edit_lock 1252958019 _edit_last 2 Doha trade talks resume in Geneva http://www.ethiopianreview.com/business/1407 Mon, 14 Sep 2009 19:53:56 +0000 http://www.ethiopianreview.com/business/?p=1407 Press Trust of India]]> 1407 2009-09-14 12:53:56 2009-09-14 19:53:56 open open doha-trade-talks-resume-in-geneva publish 0 0 post _edit_lock 1252958037 _edit_last 2 StanChart to hire 2,000 staff; to open KPO in B'lore http://www.ethiopianreview.com/business/1411 Mon, 14 Sep 2009 19:57:51 +0000 http://www.ethiopianreview.com/business/?p=1411 Press Trust of India]]> 1411 2009-09-14 12:57:51 2009-09-14 19:57:51 open open stanchart-to-hire-2000-staff-to-open-kpo-in-blore publish 0 0 post _edit_lock 1252958339 _edit_last 2 Govt decides to allow retail sale of Tamiflu http://www.ethiopianreview.com/business/1412 Mon, 14 Sep 2009 19:58:21 +0000 http://www.ethiopianreview.com/business/?p=1412 Press Trust of India]]> 1412 2009-09-14 12:58:21 2009-09-14 19:58:21 open open govt-decides-to-allow-retail-sale-of-tamiflu publish 0 0 post _edit_lock 1252958302 _edit_last 2 Eli Lilly to slash 5,500 jobs; aims $1 bn cost saving http://www.ethiopianreview.com/business/1413 Mon, 14 Sep 2009 19:58:58 +0000 http://www.ethiopianreview.com/business/?p=1413 Press Trust of India]]> 1413 2009-09-14 12:58:58 2009-09-14 19:58:58 open open eli-lilly-to-slash-5500-jobs-aims-1-bn-cost-saving publish 0 0 post _edit_lock 1252958545 _edit_last 2 Banks have repaid more than $70 billion: Obama http://www.ethiopianreview.com/business/1417 Mon, 14 Sep 2009 20:03:07 +0000 http://www.ethiopianreview.com/business/?p=1417 Press Trust of India ]]> 1417 2009-09-14 13:03:07 2009-09-14 20:03:07 open open banks-have-repaid-more-than-70-billion-obama publish 0 0 post _edit_lock 1252958609 _edit_last 2 Sun Pharma gets US anti-trust clearance for open offer http://www.ethiopianreview.com/business/1418 Mon, 14 Sep 2009 20:03:56 +0000 http://www.ethiopianreview.com/business/?p=1418 Press Trust of India ]]> 1418 2009-09-14 13:03:56 2009-09-14 20:03:56 open open sun-pharma-gets-us-anti-trust-clearance-for-open-offer publish 0 0 post _edit_lock 1252958638 _edit_last 2 Tata Motors raises Rs 236 cr via share sale in Tata Steel http://www.ethiopianreview.com/business/1423 Mon, 14 Sep 2009 20:05:14 +0000 http://www.ethiopianreview.com/business/?p=1423 Press Trust of India]]> 1423 2009-09-14 13:05:14 2009-09-14 20:05:14 open open tata-motors-raises-rs-236-cr-via-share-sale-in-tata-steel publish 0 0 post _edit_lock 1252958898 _edit_last 2 Obama warns Wall Street firms to mend their ways http://www.ethiopianreview.com/business/1424 Mon, 14 Sep 2009 20:05:50 +0000 http://www.ethiopianreview.com/business/?p=1424 Press Trust of India]]> 1424 2009-09-14 13:05:50 2009-09-14 20:05:50 open open obama-warns-wall-street-firms-to-mend-their-ways publish 0 0 post _edit_lock 1252958874 _edit_last 2 Dangerous bends ahead http://www.ethiopianreview.com/business/1425 Mon, 14 Sep 2009 20:08:21 +0000 http://www.ethiopianreview.com/business/?p=1425 Business Standard]]> 1425 2009-09-14 13:08:21 2009-09-14 20:08:21 open open dangerous-bends-ahead publish 0 0 post _edit_lock 1252958903 _edit_last 2 Managing exchange rates http://www.ethiopianreview.com/business/1429 Mon, 14 Sep 2009 20:09:53 +0000 http://www.ethiopianreview.com/business/?p=1429 Business Standard]]> 1429 2009-09-14 13:09:53 2009-09-14 20:09:53 open open managing-exchange-rates publish 0 0 post _edit_lock 1252959059 _edit_last 2 Chief strategist http://www.ethiopianreview.com/business/1431 Mon, 14 Sep 2009 20:11:22 +0000 http://www.ethiopianreview.com/business/?p=1431 Business Standard]]> 1431 2009-09-14 13:11:22 2009-09-14 20:11:22 open open chief-strategist publish 0 0 post _edit_lock 1252959083 _edit_last 2 Really connected http://www.ethiopianreview.com/business/1435 Mon, 14 Sep 2009 20:12:48 +0000 http://www.ethiopianreview.com/business/?p=1435 Business Standard]]> 1435 2009-09-14 13:12:48 2009-09-14 20:12:48 open open really-connected publish 0 0 post _edit_lock 1252959233 _edit_last 2 Use our gym http://www.ethiopianreview.com/business/1436 Mon, 14 Sep 2009 20:13:09 +0000 http://www.ethiopianreview.com/business/?p=1436 Business Standard]]> 1436 2009-09-14 13:13:09 2009-09-14 20:13:09 open open use-our-gym publish 0 0 post _edit_lock 1252959190 _edit_last 2 Cousins to take Q3 charge for Terminus 200 http://www.ethiopianreview.com/business/1441 Mon, 14 Sep 2009 20:15:06 +0000 http://www.ethiopianreview.com/business/?p=1441 Atlanta Business Chronicle]]> 1441 2009-09-14 13:15:06 2009-09-14 20:15:06 open open cousins-to-take-q3-charge-for-terminus-200 publish 0 0 post _edit_lock 1252959370 _edit_last 2 Cassidy & Pinkard Colliers hires Art Santry http://www.ethiopianreview.com/business/1442 Mon, 14 Sep 2009 20:15:48 +0000 http://www.ethiopianreview.com/business/?p=1442 Washington Business Journal]]> 1442 2009-09-14 13:15:48 2009-09-14 20:15:48 open open cassidy-pinkard-colliers-hires-art-santry publish 0 0 post _edit_lock 1252959349 _edit_last 2 OpenQ Raises $2.5 Million http://www.ethiopianreview.com/business/1245 Mon, 14 Sep 2009 20:16:12 +0000 http://www.ethiopianreview.com/business/?p=1245 PE Hub News]]> 1245 2009-09-14 13:16:12 2009-09-14 20:16:12 open open openq-raises-2-5-million publish 0 0 post _edit_lock 1252959373 _edit_last 3 Grunley Construction wins museum project in Middleburg http://www.ethiopianreview.com/business/1443 Mon, 14 Sep 2009 20:16:20 +0000 http://www.ethiopianreview.com/business/?p=1443 Washington Business Journal]]> 1443 2009-09-14 13:16:20 2009-09-14 20:16:20 open open grunley-construction-wins-museum-project-in-middleburg publish 0 0 post _edit_lock 1252959381 _edit_last 2 Georgetown buildings sell for $62M http://www.ethiopianreview.com/business/1451 Mon, 14 Sep 2009 20:17:40 +0000 http://www.ethiopianreview.com/business/?p=1451 Washington Business Journal ]]> 1451 2009-09-14 13:17:40 2009-09-14 20:17:40 open open georgetown-buildings-sell-for-62m publish 0 0 post _edit_lock 1252959523 _edit_last 2 SAK moving into CityArts Factory http://www.ethiopianreview.com/business/1449 Mon, 14 Sep 2009 20:18:23 +0000 http://www.ethiopianreview.com/business/?p=1449 Orlando Business Journal]]> 1449 2009-09-14 13:18:23 2009-09-14 20:18:23 open open sak-moving-into-cityarts-factory publish 0 0 post _edit_last 2 _edit_lock 1252959504 Point Commercial opens Overland Park office http://www.ethiopianreview.com/business/1450 Mon, 14 Sep 2009 20:18:48 +0000 http://www.ethiopianreview.com/business/?p=1450 Kansas City Business Journal]]> 1450 2009-09-14 13:18:48 2009-09-14 20:18:48 open open point-commercial-opens-overland-park-office publish 0 0 post _edit_lock 1252959529 _edit_last 2 Element Homes lots sold for $3.6M http://www.ethiopianreview.com/business/1455 Mon, 14 Sep 2009 20:19:49 +0000 http://www.ethiopianreview.com/business/?p=1455 Phoenix Business Journal]]> 1455 2009-09-14 13:19:49 2009-09-14 20:19:49 open open element-homes-lots-sold-for-3-6m publish 0 0 post _edit_lock 1252959590 _edit_last 2 National Institute of Standards and Technology plans campus updates http://www.ethiopianreview.com/business/1456 Mon, 14 Sep 2009 20:20:16 +0000 http://www.ethiopianreview.com/business/?p=1456 Washington Business Journal]]> 1456 2009-09-14 13:20:16 2009-09-14 20:20:16 open open national-institute-of-standards-and-technology-plans-campus-updates publish 0 0 post _edit_lock 1252959617 _edit_last 2 Annapolis hopes public art will yield a real estate flourish http://www.ethiopianreview.com/business/1457 Mon, 14 Sep 2009 20:20:43 +0000 http://www.ethiopianreview.com/business/?p=1457 Baltimore Business Journal]]> 1457 2009-09-14 13:20:43 2009-09-14 20:20:43 open open annapolis-hopes-public-art-will-yield-a-real-estate-flourish publish 0 0 post _edit_lock 1252959644 _edit_last 2 French government warns banks to start issuing loans http://www.ethiopianreview.com/business/1461 Mon, 14 Sep 2009 20:22:54 +0000 http://www.ethiopianreview.com/business/?p=1461 Banks accused of starving businesses Many other small firms face problems similar to those of Clair Service Hotellerie - especially in the restaurant industry where the banks stand accused of eschewing the whole sector. "I increasingly notice banks that are more and more hesitant and more and more cautious when it comes to taking risks," said Abdellah Mezziouane, general secretary of the CGPME in Paris, which represents small and medium-sized businesses. "We have concrete cases where small and medium-sized businesses can no longer find the means to finance their development and their investment, and no longer have access to funds." A mediator appointed by the government to investigate complaints is dealing with a surge in the number of claims from small and medium-sized businesses. Last year, the banks, which had received billions of euros in state aid, agreed to increase loans by 3 percent to 4 percent. But they have not reached that target. Who is to blame? The banks have defended themselves against charges that they are becoming too tight-fisted. Some analysts have agreed with the banks, saying reduced demand caused by the recession is to blame for failure to meet lending targets. "For one or two quarters neither households nor companies were willing to borrow any more," said Cyril Blesson, chief economist with Seeds Finance consultants. Banks have perceived small businesses in particular to be too high a risk during the crisis, and tightened their lending conditions late last year, Blesson added. However, with interest rates consistently low, he said he sees grounds for optimism. "According to the lending surveys from the central banks and especially the Banque de France, we have signs of a revival in demand for credit," Blesson said. "That is good, but now we also need banks to lend to households and companies that are willing to get indebted again." Adopt "small-business attitude" In the meantime, as many smaller companies continue to suffer, both the French government and business leaders have appealed to the banks to be more flexible. Finance Minister Christine Lagarde has written to 12 banks that have received state support, giving them until the end of the month to outline the measures they are taking to revitalize their credit policies. "I ask the French banking sector to adopt the attitude of small and medium sized companies," Laurence Parisot, head of the Medef employers' organization, said in a recent radio interview. "It is the most difficult time for them because for months they've had order books falling by 30, 40, 50 percent. A large company can get by; a small business can't." - By Alasdair Sandford | DW]]> 1461 2009-09-14 13:22:54 2009-09-14 20:22:54 open open french-government-warns-banks-to-start-issuing-loans publish 0 0 post _edit_last 2 _edit_lock 1252959840 Opel deal faces fresh challenge http://www.ethiopianreview.com/business/1462 Mon, 14 Sep 2009 20:23:41 +0000 http://www.ethiopianreview.com/business/?p=1462 Belgium demands special probe In Belgium, anger is mounting at the German decision and the Flemish government has taken its argument to Brussels. Kris Peeters, first minister of Flanders said he wants the EU's executive commission to investigate whether German aid is in conflict with EU anti-competitive practices. He held talks with EU Industry Commissioner Guenter Verheugen on the issue on Monday. Peeters said he and Verheugen agreed that commercial and economic, not political, factors were paramount in deciding which plants should survive. "We are convinced Antwerp has a fair chance. Antwerp has a better chance than certain German plants," he told reporters, adding Flanders would consider filing a complaint with the Commission. EU scrutiny adds uncertainty to Magna-deal The German government said it does not anticipate problems in connection with state aid being extended to Opel. A government spokesman said the support package is in line with existing EU guidelines and does not need to be presented to Brussels for special scrutiny. But the EU Commission takes a different view and has announced it will examine closely the conditions attached to German support for the carmaker. EU Competition Commissioner Neelie Kroes said that the rules of the European market do not tolerate protectionism. However, the required documentation is not expected to arrive from Berlin before the German general election at the end of September. The Magna deal, therefore, faces the prospect of a potential veto from Brussels for another few weeks. This adds further uncertainty to the whole project, which at present consists of little more than a declaration of intent by General Motors and Magna. GM in particular warned that "key issues" still need to be dealt with during the negotiations on the way to a final agreement over the sale of Opel. Germany hosts Opel meeting Given these challenges, the German government is trying to move swiftly and has announced a meeting will be held on Tuesday in Berlin, at which European states with Opel factories are invited to discuss and agree on the disbursement of state funds for restructuring measures. But agreement, it seems, does not even exist over who is invited. Belgian foreign minister Yves Leterme complained on Monday that his country had received no invitation. The German government's spokesman denied this. - rri/Reuters/dpa/AFP]]> 1462 2009-09-14 13:23:41 2009-09-14 20:23:41 open open opel-deal-faces-fresh-challenge publish 0 0 post _edit_lock 1252959822 _edit_last 2 EU economies could rebound, but unemployment worsens http://www.ethiopianreview.com/business/1463 Mon, 14 Sep 2009 20:24:08 +0000 http://www.ethiopianreview.com/business/?p=1463 Call for training schemes to help unemployed The commissioner said governments should provide training schemes and promote "active labor market policies" designed to ensure that the unemployed can find a job once the economy fully recovers. EU governments have pumped billions of euros into their economies to mitigate the impact of the bloc's worst recession in decades. According to Almunia, additional discretionary spending will have totalled 2.5 per cent of the EU's GDP over the 2009-10 period. If "automatic stabilizers" such as unemployment benefit payments are also taken into account, the size of the EU's stimulus package will have amounted to 5.5 per cent of GDP by next year. But with this additional spending leading to ballooning budget deficits across the EU, Almunia once again urged governments to start thinking about how to rein in public spending. "We need to define a clear, credible and coordinated 'exit strategy' to put public finances progressively back on a sustainable path and to find the necessary resources to increase Europe's growth and jobs potential," Almunia said. The governments of Ireland and Spain are among those that have already announced tax hikes in order to reduce public debt. Too early for real optimism Almunia insisted that Monday's figures should be treated with "a mix of optimism and prudence," noting that the speed of the recovery would depend on a number of factors, including the fragility of the financial sector and the impact of weak labor markets. Monday's interim forecasts were based on the outlook for Germany, Spain, France, Italy, the Netherlands, Poland and Britain, which together account for 80 per cent of the EU economy. Of these, only Spain was expected to remain in recession until at least 2010. Germany is expected to lead the recovery with the greatest third-quarter gain, with Italy showing "gradual improvement" and Britain making a "return to positive territory before the year's end," Almunia added. - mrm/dpa/Reuters/AFP]]> 1463 2009-09-14 13:24:08 2009-09-14 20:24:08 open open eu-economies-could-rebound-but-unemployment-worsens publish 0 0 post _edit_lock 1252959848 _edit_last 2 Cincinnati eyes Dayton’s Hub designation http://www.ethiopianreview.com/business/1467 Mon, 14 Sep 2009 20:25:28 +0000 http://www.ethiopianreview.com/business/?p=1467 Business Courier of Cincinnati]]> 1467 2009-09-14 13:25:28 2009-09-14 20:25:28 open open cincinnati-eyes-dayton%e2%80%99s-hub-designation publish 0 0 post _edit_lock 1252959992 _edit_last 2 Greater Cincinnati Foundation plants funding seeds http://www.ethiopianreview.com/business/1468 Mon, 14 Sep 2009 20:26:05 +0000 http://www.ethiopianreview.com/business/?p=1468 Business Courier of Cincinnati]]> 1468 2009-09-14 13:26:05 2009-09-14 20:26:05 open open greater-cincinnati-foundation-plants-funding-seeds publish 0 0 post _edit_lock 1252959965 _edit_last 2 Naval air station giving way to Georgia Guard http://www.ethiopianreview.com/business/1469 Mon, 14 Sep 2009 20:26:33 +0000 http://www.ethiopianreview.com/business/?p=1469 Atlanta Business Chronicle]]> 1469 2009-09-14 13:26:33 2009-09-14 20:26:33 open open naval-air-station-giving-way-to-georgia-guard publish 0 0 post _edit_lock 1252959994 _edit_last 2 Mill Creek Greenway project could forge path to jobs, growth http://www.ethiopianreview.com/business/1473 Mon, 14 Sep 2009 20:27:28 +0000 http://www.ethiopianreview.com/business/?p=1473 Business Courier of Cincinnati]]> 1473 2009-09-14 13:27:28 2009-09-14 20:27:28 open open mill-creek-greenway-project-could-forge-path-to-jobs-growth publish 0 0 post _edit_lock 1252960112 _edit_last 2 Economist: City’s recovery will start next year http://www.ethiopianreview.com/business/1474 Mon, 14 Sep 2009 20:27:58 +0000 http://www.ethiopianreview.com/business/?p=1474 Atlanta Business Chronicle ]]> 1474 2009-09-14 13:27:58 2009-09-14 20:27:58 open open economist-city%e2%80%99s-recovery-will-start-next-year publish 0 0 post _edit_lock 1252960082 _edit_last 2 When will the jobs come back? http://www.ethiopianreview.com/business/1475 Mon, 14 Sep 2009 20:28:45 +0000 http://www.ethiopianreview.com/business/?p=1475 Northeast Florida has lost 49,100 jobs since the recession began in December 2007. That works out to 7.7 percent of the total jobs in our area lost in the past 21 months. And jobs are still being lost, albeit at a slower rate. Now, as businesses look forward to an economic recovery from what is being called the Great Recession, the question arises, “When are those jobs coming back?” It’s a crucial question because economists and common sense tell us: No new jobs, no sustained recovery. We asked business leaders in our core industries if they can predict when those lost jobs will return. Very few had definite timelines. We also asked if they would be rehiring for the same jobs when the economy strengthened, or would they be looking for workers with some different skills? Their answers are sobering to anyone expecting a quick bounce back from the recession. Local businesses will 'wait and see' on decision to hire Here’s about the best thing that can be said about Northeast Florida’s economy: At least we’re not South Florida. And that’s reflected in the latest unemployment statistics, which puts our unemployment rate at 10.5 percent, compared with 10.8 percent in Miami/Dade, according to the July statistics, the latest available. Local business leaders asked about future hiring plans were generally in “wait-and-see” mode. They want to see their business increase before they start hiring more people. That follows the thoughts of Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness, who said the majority of businesses are expected to get as much out of their work force before they add to their ranks. - Jacksonville Business Journal ]]> 1475 2009-09-14 13:28:45 2009-09-14 20:28:45 open open when-will-the-jobs-come-back publish 0 0 post _edit_lock 1252960126 _edit_last 2 State to vet Miami 21, improving chance for city vote before election http://www.ethiopianreview.com/business/1479 Mon, 14 Sep 2009 20:29:38 +0000 http://www.ethiopianreview.com/business/?p=1479 South Florida Business Journal ]]> 1479 2009-09-14 13:29:38 2009-09-14 20:29:38 open open state-to-vet-miami-21-improving-chance-for-city-vote-before-election publish 0 0 post _edit_lock 1252960242 _edit_last 2 Visa may add 366 jobs in Miami http://www.ethiopianreview.com/business/1480 Mon, 14 Sep 2009 20:30:05 +0000 http://www.ethiopianreview.com/business/?p=1480 South Florida Business Journal ]]> 1480 2009-09-14 13:30:05 2009-09-14 20:30:05 open open visa-may-add-366-jobs-in-miami publish 0 0 post _edit_lock 1252960206 _edit_last 2 State pursues new business incentives as Empire Zones dwindle http://www.ethiopianreview.com/business/1481 Mon, 14 Sep 2009 20:30:42 +0000 http://www.ethiopianreview.com/business/?p=1481 The Business Review (Albany)]]> 1481 2009-09-14 13:30:42 2009-09-14 20:30:42 open open state-pursues-new-business-incentives-as-empire-zones-dwindle publish 0 0 post _edit_lock 1252960243 _edit_last 2 Defense firm snags $50M military deal http://www.ethiopianreview.com/business/1485 Mon, 14 Sep 2009 20:31:49 +0000 http://www.ethiopianreview.com/business/?p=1485 Dayton Business Journal]]> 1485 2009-09-14 13:31:49 2009-09-14 20:31:49 open open defense-firm-snags-50m-military-deal publish 0 0 post _edit_lock 1252960310 _edit_last 2 Gas prices continue to fall http://www.ethiopianreview.com/business/1486 Mon, 14 Sep 2009 20:32:20 +0000 http://www.ethiopianreview.com/business/?p=1486 South Florida Business Journal]]> 1486 2009-09-14 13:32:20 2009-09-14 20:32:20 open open gas-prices-continue-to-fall publish 0 0 post _edit_lock 1252960341 _edit_last 2 Gasoline prices down in Georgia http://www.ethiopianreview.com/business/1487 Mon, 14 Sep 2009 20:32:38 +0000 http://www.ethiopianreview.com/business/?p=1487 Atlanta Business Chronicle]]> 1487 2009-09-14 13:32:38 2009-09-14 20:32:38 open open gasoline-prices-down-in-georgia publish 0 0 post _edit_lock 1252960359 _edit_last 2 Pittsburgh Foundation revises grantmaking policy as part of new strategic plan http://www.ethiopianreview.com/business/1491 Mon, 14 Sep 2009 20:33:36 +0000 http://www.ethiopianreview.com/business/?p=1491 Pittsburgh Business Times]]> 1491 2009-09-14 13:33:36 2009-09-14 20:33:36 open open pittsburgh-foundation-revises-grantmaking-policy-as-part-of-new-strategic-plan publish 0 0 post _edit_lock 1252960417 _edit_last 2 Stimulus helped economy, but recovery lackluster http://www.ethiopianreview.com/business/1492 Mon, 14 Sep 2009 20:34:05 +0000 http://www.ethiopianreview.com/business/?p=1492 Atlanta Business Chronicle]]> 1492 2009-09-14 13:34:05 2009-09-14 20:34:05 open open stimulus-helped-economy-but-recovery-lackluster publish 0 0 post _edit_lock 1252960447 _edit_last 2 Indiana State Fair to have Japanese flair in 2010 http://www.ethiopianreview.com/business/1493 Mon, 14 Sep 2009 20:34:26 +0000 http://www.ethiopianreview.com/business/?p=1493 Business First of Louisville]]> 1493 2009-09-14 13:34:26 2009-09-14 20:34:26 open open indiana-state-fair-to-have-japanese-flair-in-2010 publish 0 0 post _edit_lock 1252960467 _edit_last 2 Comptroller request upsets ECIDA http://www.ethiopianreview.com/business/1497 Mon, 14 Sep 2009 20:35:26 +0000 http://www.ethiopianreview.com/business/?p=1497 Business First of Buffalo]]> 1497 2009-09-14 13:35:26 2009-09-14 20:35:26 open open comptroller-request-upsets-ecida publish 0 0 post _edit_lock 1252960527 _edit_last 2 GeoEye to refinance debt http://www.ethiopianreview.com/business/1498 Mon, 14 Sep 2009 20:35:56 +0000 http://www.ethiopianreview.com/business/?p=1498 Washington Business Journal]]> 1498 2009-09-14 13:35:56 2009-09-14 20:35:56 open open geoeye-to-refinance-debt publish 0 0 post _edit_lock 1252960556 _edit_last 2 Obama asks Wall Street to back financial reform http://www.ethiopianreview.com/business/1499 Mon, 14 Sep 2009 20:36:23 +0000 http://www.ethiopianreview.com/business/?p=1499 Washington Business Journal]]> 1499 2009-09-14 13:36:23 2009-09-14 20:36:23 open open obama-asks-wall-street-to-back-financial-reform publish 0 0 post _edit_lock 1252960585 _edit_last 2 Shaw Industries adding 200 GA jobs http://www.ethiopianreview.com/business/1503 Mon, 14 Sep 2009 20:37:32 +0000 http://www.ethiopianreview.com/business/?p=1503 Atlanta Business Chronicle]]> 1503 2009-09-14 13:37:32 2009-09-14 20:37:32 open open shaw-industries-adding-200-ga-jobs publish 0 0 post _edit_last 2 _edit_lock 1252960720 Budget axe hits Oregon universities http://www.ethiopianreview.com/business/1504 Mon, 14 Sep 2009 20:38:01 +0000 http://www.ethiopianreview.com/business/?p=1504 Portland Business Journal]]> 1504 2009-09-14 13:38:01 2009-09-14 20:38:01 open open budget-axe-hits-oregon-universities publish 0 0 post _edit_lock 1252960682 _edit_last 2 Kai-Fu Lee Forms Chinese Business Incubator http://www.ethiopianreview.com/business/1506 Mon, 14 Sep 2009 20:38:08 +0000 http://www.ethiopianreview.com/business/?p=1506 PE Hub News]]> 1506 2009-09-14 13:38:08 2009-09-14 20:38:08 open open kai-fu-lee-forms-chinese-business-incubator publish 0 0 post _edit_lock 1252960688 _edit_last 3 UTSA is searching for its first big football fundraising gift http://www.ethiopianreview.com/business/1505 Mon, 14 Sep 2009 20:38:30 +0000 http://www.ethiopianreview.com/business/?p=1505 San Antonio Business Journal]]> 1505 2009-09-14 13:38:30 2009-09-14 20:38:30 open open utsa-is-searching-for-its-first-big-football-fundraising-gift publish 0 0 post _edit_lock 1252960710 _edit_last 2 Vina Capital Sells Hilton Hanoi Stake http://www.ethiopianreview.com/business/1515 Mon, 14 Sep 2009 20:39:19 +0000 http://www.ethiopianreview.com/business/?p=1515 PE Hub News ]]> 1515 2009-09-14 13:39:19 2009-09-14 20:39:19 open open vina-capital-sells-hilton-hanoi-stake publish 0 0 post _edit_lock 1252960760 _edit_last 3 Student loan woes: First Marblehead’s wild year http://www.ethiopianreview.com/business/1513 Mon, 14 Sep 2009 20:39:27 +0000 http://www.ethiopianreview.com/business/?p=1513 Boston Business Journal ]]> 1513 2009-09-14 13:39:27 2009-09-14 20:39:27 open open student-loan-woes-first-marblehead%e2%80%99s-wild-year publish 0 0 post _edit_last 2 _edit_lock 1252960768 Business school building debuts at Georgetown University http://www.ethiopianreview.com/business/1514 Mon, 14 Sep 2009 20:39:57 +0000 http://www.ethiopianreview.com/business/?p=1514 Washington Business Journal]]> 1514 2009-09-14 13:39:57 2009-09-14 20:39:57 open open business-school-building-debuts-at-georgetown-university publish 0 0 post _edit_lock 1252960798 _edit_last 2 China Merchants Sets Up Private Equity Unit http://www.ethiopianreview.com/business/1520 Mon, 14 Sep 2009 20:39:59 +0000 http://www.ethiopianreview.com/business/?p=1520 PE Hub News]]> 1520 2009-09-14 13:39:59 2009-09-14 20:39:59 open open china-merchants-sets-up-private-equity-unit publish 0 0 post _edit_lock 1252960799 _edit_last 3 Triangle campuses in alert mode as swine flu worries grow http://www.ethiopianreview.com/business/1516 Mon, 14 Sep 2009 20:40:25 +0000 http://www.ethiopianreview.com/business/?p=1516 Triangle Business Journal]]> 1516 2009-09-14 13:40:25 2009-09-14 20:40:25 open open triangle-campuses-in-alert-mode-as-swine-flu-worries-grow publish 0 0 post _edit_lock 1252960826 _edit_last 2 TPG Buys Into Russian Supermarket Chain http://www.ethiopianreview.com/business/1524 Mon, 14 Sep 2009 20:40:37 +0000 http://www.ethiopianreview.com/business/?p=1524 PE Hub News]]> 1524 2009-09-14 13:40:37 2009-09-14 20:40:37 open open tpg-buys-into-russian-supermarket-chain publish 0 0 post _edit_lock 1252960838 _edit_last 3 WFU dominating Triad hunt for stimulus funds http://www.ethiopianreview.com/business/1528 Mon, 14 Sep 2009 20:41:20 +0000 http://www.ethiopianreview.com/business/?p=1528 The Business Journal of the Greater Triad Area]]> 1528 2009-09-14 13:41:20 2009-09-14 20:41:20 open open wfu-dominating-triad-hunt-for-stimulus-funds publish 0 0 post _edit_last 2 _edit_lock 1252960881 Bain, CVC, Permira Short-Listed for Bellsystem24 http://www.ethiopianreview.com/business/1531 Mon, 14 Sep 2009 20:41:32 +0000 http://www.ethiopianreview.com/business/?p=1531 PE Hub News]]> 1531 2009-09-14 13:41:32 2009-09-14 20:41:32 open open bain-cvc-permira-short-listed-for-bellsystem24 publish 0 0 post _edit_lock 1252960893 _edit_last 3 Physician shortage hits home http://www.ethiopianreview.com/business/1529 Mon, 14 Sep 2009 20:41:46 +0000 http://www.ethiopianreview.com/business/?p=1529 Philadelphia Business Journal]]> 1529 2009-09-14 13:41:46 2009-09-14 20:41:46 open open physician-shortage-hits-home publish 0 0 post _edit_lock 1252960909 _edit_last 2 Rosso Raises $2 Million from Austin Ventures http://www.ethiopianreview.com/business/1536 Mon, 14 Sep 2009 20:42:10 +0000 http://www.ethiopianreview.com/business/?p=1536 PE Hub News]]> 1536 2009-09-14 13:42:10 2009-09-14 20:42:10 open open rosso-raises-2-million-from-austin-ventures publish 0 0 post _edit_lock 1252960931 _edit_last 3 Community colleges add faculty to handle surge http://www.ethiopianreview.com/business/1530 Mon, 14 Sep 2009 20:42:18 +0000 http://www.ethiopianreview.com/business/?p=1530 Dayton Business Journal]]> 1530 2009-09-14 13:42:18 2009-09-14 20:42:18 open open community-colleges-add-faculty-to-handle-surge publish 0 0 post _edit_lock 1252960939 _edit_last 2 BNP Planning $300 Million Gulf PE Fund http://www.ethiopianreview.com/business/1541 Mon, 14 Sep 2009 20:42:53 +0000 http://www.ethiopianreview.com/business/?p=1541 PE Hub News]]> 1541 2009-09-14 13:42:53 2009-09-14 20:42:53 open open bnp-planning-300-million-gulf-pe-fund publish 0 0 post _edit_lock 1252960974 _edit_last 3 State colleges, universities watch enrollments rise http://www.ethiopianreview.com/business/1540 Mon, 14 Sep 2009 20:43:12 +0000 http://www.ethiopianreview.com/business/?p=1540 Business First of Buffalo]]> 1540 2009-09-14 13:43:12 2009-09-14 20:43:12 open open state-colleges-universities-watch-enrollments-rise publish 0 0 post _edit_lock 1252960993 _edit_last 2 Arx Equity Raises €102 Million http://www.ethiopianreview.com/business/1547 Mon, 14 Sep 2009 20:43:37 +0000 http://www.ethiopianreview.com/business/?p=1547 PE Hub News]]> 1547 2009-09-14 13:43:37 2009-09-14 20:43:37 open open arx-equity-raises-e102-million publish 0 0 post _edit_lock 1252961019 _edit_last 3 Memorial Hermann shifts radiology school http://www.ethiopianreview.com/business/1542 Mon, 14 Sep 2009 20:43:38 +0000 http://www.ethiopianreview.com/business/?p=1542 Houston Business Journal ]]> 1542 2009-09-14 13:43:38 2009-09-14 20:43:38 open open memorial-hermann-shifts-radiology-school publish 0 0 post _edit_lock 1252961020 _edit_last 2 IUS closed after water main break http://www.ethiopianreview.com/business/1543 Mon, 14 Sep 2009 20:43:56 +0000 http://www.ethiopianreview.com/business/?p=1543 Business First of Louisville]]> 1543 2009-09-14 13:43:56 2009-09-14 20:43:56 open open ius-closed-after-water-main-break publish 0 0 post _edit_last 2 _edit_lock 1252961037 RHEA Investments Buys Istanbul VC Trust http://www.ethiopianreview.com/business/1552 Mon, 14 Sep 2009 20:44:22 +0000 http://www.ethiopianreview.com/business/?p=1552 PE Hub News]]> 1552 2009-09-14 13:44:22 2009-09-14 20:44:22 open open rhea-investments-buys-istanbul-vc-trust publish 0 0 post _edit_lock 1252961063 _edit_last 3 St. Philip’s named a ‘Military-Friendly’ school http://www.ethiopianreview.com/business/1553 Mon, 14 Sep 2009 20:44:51 +0000 http://www.ethiopianreview.com/business/?p=1553 San Antonio Business Journal]]> 1553 2009-09-14 13:44:51 2009-09-14 20:44:51 open open st-philip%e2%80%99s-named-a-%e2%80%98military-friendly%e2%80%99-school publish 0 0 post _edit_lock 1252961093 _edit_last 2 HVCC, architecture+ among Rensselaer chamber award winners http://www.ethiopianreview.com/business/1554 Mon, 14 Sep 2009 20:45:14 +0000 http://www.ethiopianreview.com/business/?p=1554 The Business Review (Albany)]]> 1554 2009-09-14 13:45:14 2009-09-14 20:45:14 open open hvcc-architecture-among-rensselaer-chamber-award-winners publish 0 0 post _edit_lock 1252961115 _edit_last 2 Brad Garlinghouse Joins AOL http://www.ethiopianreview.com/business/1558 Mon, 14 Sep 2009 20:45:17 +0000 http://www.ethiopianreview.com/business/?p=1558 PE Hub News]]> 1558 2009-09-14 13:45:17 2009-09-14 20:45:17 open open brad-garlinghouse-joins-aol publish 0 0 post _edit_last 3 _edit_lock 1252961118 CCAD surges past fundraising goal http://www.ethiopianreview.com/business/1557 Mon, 14 Sep 2009 20:45:40 +0000 http://www.ethiopianreview.com/business/?p=1557 Business First of Columbus]]> 1557 2009-09-14 13:45:40 2009-09-14 20:45:40 open open ccad-surges-past-fundraising-goal publish 0 0 post _edit_lock 1252961141 _edit_last 2 Kofax Buys 170 Systems http://www.ethiopianreview.com/business/1563 Mon, 14 Sep 2009 20:45:50 +0000 http://www.ethiopianreview.com/business/?p=1563 PE Hub News]]> 1563 2009-09-14 13:45:50 2009-09-14 20:45:50 open open kofax-buys-170-systems publish 0 0 post _edit_lock 1252961227 _edit_last 3 Bona grad to fill SUNY post http://www.ethiopianreview.com/business/1567 Mon, 14 Sep 2009 20:46:31 +0000 http://www.ethiopianreview.com/business/?p=1567 Business First of Buffalo]]> 1567 2009-09-14 13:46:31 2009-09-14 20:46:31 open open bona-grad-to-fill-suny-post publish 0 0 post _edit_last 2 _edit_lock 1252961191 Manatee County seeks business partners for scholarship program http://www.ethiopianreview.com/business/1568 Mon, 14 Sep 2009 20:46:51 +0000 http://www.ethiopianreview.com/business/?p=1568 Tampa Bay Business Journal]]> 1568 2009-09-14 13:46:51 2009-09-14 20:46:51 open open manatee-county-seeks-business-partners-for-scholarship-program publish 0 0 post _edit_lock 1252961212 _edit_last 2 3 projects OK'd for ECIDA help http://www.ethiopianreview.com/business/1569 Mon, 14 Sep 2009 20:47:18 +0000 http://www.ethiopianreview.com/business/?p=1569 Business First of Buffalo]]> 1569 2009-09-14 13:47:18 2009-09-14 20:47:18 open open 3-projects-okd-for-ecida-help publish 0 0 post _edit_lock 1252961238 _edit_last 2 Emily Melton Leaves DFJ for Mayfield http://www.ethiopianreview.com/business/1576 Mon, 14 Sep 2009 20:47:51 +0000 http://www.ethiopianreview.com/business/?p=1576 PE Hub News]]> 1576 2009-09-14 13:47:51 2009-09-14 20:47:51 open open emily-melton-leaves-dfj-for-mayfield publish 0 0 post _edit_lock 1252961272 _edit_last 3 University City Science Center’s impact $9B, study says http://www.ethiopianreview.com/business/1575 Mon, 14 Sep 2009 20:48:05 +0000 http://www.ethiopianreview.com/business/?p=1575 Philadelphia Business Journal]]> 1575 2009-09-14 13:48:05 2009-09-14 20:48:05 open open university-city-science-center%e2%80%99s-impact-9b-study-says publish 0 0 post _edit_lock 1252961286 _edit_last 2 McCall named to head WFU med institute http://www.ethiopianreview.com/business/1577 Mon, 14 Sep 2009 20:48:34 +0000 http://www.ethiopianreview.com/business/?p=1577 The Business Journal of the Greater Triad Area]]> 1577 2009-09-14 13:48:34 2009-09-14 20:48:34 open open mccall-named-to-head-wfu-med-institute publish 0 0 post _edit_lock 1252961315 _edit_last 2 Frisco scores more MBA courses from UNT http://www.ethiopianreview.com/business/1578 Mon, 14 Sep 2009 20:49:02 +0000 http://www.ethiopianreview.com/business/?p=1578 Dallas Business Journal]]> 1578 2009-09-14 13:49:02 2009-09-14 20:49:02 open open frisco-scores-more-mba-courses-from-unt publish 0 0 post _edit_lock 1252961343 _edit_last 2 Waterland PE Buys Intertrust http://www.ethiopianreview.com/business/1582 Mon, 14 Sep 2009 20:49:17 +0000 http://www.ethiopianreview.com/business/?p=1582 PE Hub News]]> 1582 2009-09-14 13:49:17 2009-09-14 20:49:17 open open waterland-pe-buys-intertrust publish 0 0 post _edit_lock 1252961358 _edit_last 3 Maryland Zoo in Baltimore raises weekday adult admission price http://www.ethiopianreview.com/business/1586 Mon, 14 Sep 2009 20:50:08 +0000 http://www.ethiopianreview.com/business/?p=1586 Baltimore Business Journal]]> 1586 2009-09-14 13:50:08 2009-09-14 20:50:08 open open maryland-zoo-in-baltimore-raises-weekday-adult-admission-price publish 0 0 post _edit_lock 1252961410 _edit_last 2 Iroquois Healthcare receives $441K state grant http://www.ethiopianreview.com/business/1588 Mon, 14 Sep 2009 20:50:29 +0000 http://www.ethiopianreview.com/business/?p=1588 The Business Review (Albany)]]> 1588 2009-09-14 13:50:29 2009-09-14 20:50:29 open open iroquois-healthcare-receives-441k-state-grant publish 0 0 post _edit_lock 1252961429 _edit_last 2 Bluewater Broadcasting Files for Bankruptcy http://www.ethiopianreview.com/business/1592 Mon, 14 Sep 2009 20:50:33 +0000 http://www.ethiopianreview.com/business/?p=1592 PE Hub News]]> 1592 2009-09-14 13:50:33 2009-09-14 20:50:33 open open bluewater-broadcasting-files-for-bankruptcy publish 0 0 post _edit_lock 1252961433 _edit_last 3 Breakfast meetings led to collaboration on energy research center http://www.ethiopianreview.com/business/1589 Mon, 14 Sep 2009 20:50:58 +0000 http://www.ethiopianreview.com/business/?p=1589 The Business Journal of Milwaukee]]> 1589 2009-09-14 13:50:58 2009-09-14 20:50:58 open open breakfast-meetings-led-to-collaboration-on-energy-research-center publish 0 0 post _edit_lock 1252961459 _edit_last 2 ValenTx Raises $22 Million http://www.ethiopianreview.com/business/1597 Mon, 14 Sep 2009 20:51:22 +0000 http://www.ethiopianreview.com/business/?p=1597 PE Hub News]]> 1597 2009-09-14 13:51:22 2009-09-14 20:51:22 open open valentx-raises-22-million publish 0 0 post _edit_last 3 _edit_lock 1252961483 Lex Malas Joins Broadpoint http://www.ethiopianreview.com/business/1602 Mon, 14 Sep 2009 20:51:57 +0000 http://www.ethiopianreview.com/business/?p=1602 PE Hub News ]]> 1602 2009-09-14 13:51:57 2009-09-14 20:51:57 open open lex-malas-joins-broadpoint publish 0 0 post _edit_lock 1252961517 _edit_last 3 Gas prices fuel alternative energy boost http://www.ethiopianreview.com/business/1598 Mon, 14 Sep 2009 20:52:04 +0000 http://www.ethiopianreview.com/business/?p=1598 Tampa Bay Business Journal]]> 1598 2009-09-14 13:52:04 2009-09-14 20:52:04 open open gas-prices-fuel-alternative-energy-boost publish 0 0 post _edit_lock 1252961525 _edit_last 2 Solar manufacturer gets loan guarantee for plant http://www.ethiopianreview.com/business/1601 Mon, 14 Sep 2009 20:52:22 +0000 http://www.ethiopianreview.com/business/?p=1601 Business First of Louisville]]> 1601 2009-09-14 13:52:22 2009-09-14 20:52:22 open open solar-manufacturer-gets-loan-guarantee-for-plant publish 0 0 post _edit_lock 1252961542 _edit_last 2 Yantai Seeks Stake in Permira-Owned BorsodChem http://www.ethiopianreview.com/business/1607 Mon, 14 Sep 2009 20:52:36 +0000 http://www.ethiopianreview.com/business/?p=1607 PE Hub News]]> 1607 2009-09-14 13:52:36 2009-09-14 20:52:36 open open yantai-seeks-stake-in-permira-owned-borsodchem publish 0 0 post _edit_lock 1252961556 _edit_last 3 2072 86.57.235.116 2009-10-16 17:26:31 2009-10-17 00:26:31 0 0 0 Progress Energy remolds Balanced Billing program, but critics not satisfied http://www.ethiopianreview.com/business/1603 Mon, 14 Sep 2009 20:52:50 +0000 http://www.ethiopianreview.com/business/?p=1603 Triangle Business Journal]]> 1603 2009-09-14 13:52:50 2009-09-14 20:52:50 open open progress-energy-remolds-balanced-billing-program-but-critics-not-satisfied publish 0 0 post _edit_lock 1252961570 _edit_last 2 Blackstone, Others Back $780m Building Venture http://www.ethiopianreview.com/business/1612 Mon, 14 Sep 2009 20:53:14 +0000 http://www.ethiopianreview.com/business/?p=1612 PE Hub News ]]> 1612 2009-09-14 13:53:14 2009-09-14 20:53:14 open open blackstone-others-back-780m-building-venture publish 0 0 post _edit_lock 1252961595 _edit_last 3 Region warms up to efforts to help finance solar-panel systems http://www.ethiopianreview.com/business/1613 Mon, 14 Sep 2009 20:53:46 +0000 http://www.ethiopianreview.com/business/?p=1613 Sacramento Business Journal]]> 1613 2009-09-14 13:53:46 2009-09-14 20:53:46 open open region-warms-up-to-efforts-to-help-finance-solar-panel-systems publish 0 0 post _edit_last 2 _edit_lock 1252961627 St. Louis gas cheapest in nation http://www.ethiopianreview.com/business/1614 Mon, 14 Sep 2009 20:54:11 +0000 http://www.ethiopianreview.com/business/?p=1614 St. Louis Business Journal]]> 1614 2009-09-14 13:54:11 2009-09-14 20:54:11 open open st-louis-gas-cheapest-in-nation publish 0 0 post _edit_lock 1252961652 _edit_last 2 More Questions Than Answers on $14 Billion Zain Deal http://www.ethiopianreview.com/business/1618 Mon, 14 Sep 2009 20:54:15 +0000 http://www.ethiopianreview.com/business/?p=1618 PE Hub News]]> 1618 2009-09-14 13:54:15 2009-09-14 20:54:15 open open more-questions-than-answers-on-14-billion-zain-deal publish 0 0 post _edit_lock 1252961656 _edit_last 3 Sun-Times Has Stalking Horse Bidder http://www.ethiopianreview.com/business/1624 Mon, 14 Sep 2009 20:54:59 +0000 http://www.ethiopianreview.com/business/?p=1624 PE Hub News]]> 1624 2009-09-14 13:54:59 2009-09-14 20:54:59 open open sun-times-has-stalking-horse-bidder publish 0 0 post _edit_lock 1252961700 _edit_last 3 Orlando gas prices slip downward http://www.ethiopianreview.com/business/1625 Mon, 14 Sep 2009 20:55:21 +0000 http://www.ethiopianreview.com/business/?p=1625 Orlando Business Journal]]> 1625 2009-09-14 13:55:21 2009-09-14 20:55:21 open open orlando-gas-prices-slip-downward publish 0 0 post _edit_lock 1252961723 _edit_last 2 Regency Energy adds Haynesville project http://www.ethiopianreview.com/business/1626 Mon, 14 Sep 2009 20:55:40 +0000 http://www.ethiopianreview.com/business/?p=1626 Dallas Business Journal]]> 1626 2009-09-14 13:55:40 2009-09-14 20:55:40 open open regency-energy-adds-haynesville-project publish 0 0 post _edit_lock 1252961741 _edit_last 2 Lone Star’s Purchase of Japan REIT Is Blocked http://www.ethiopianreview.com/business/1631 Mon, 14 Sep 2009 20:55:49 +0000 http://www.ethiopianreview.com/business/?p=1631 PE Hub News]]> 1631 2009-09-14 13:55:49 2009-09-14 20:55:49 open open lone-star%e2%80%99s-purchase-of-japan-reit-is-blocked publish 0 0 post _edit_lock 1252961750 _edit_last 3 Denver gas prices still creeping down http://www.ethiopianreview.com/business/1629 Mon, 14 Sep 2009 20:56:07 +0000 http://www.ethiopianreview.com/business/?p=1629 Denver Business Journal]]> 1629 2009-09-14 13:56:07 2009-09-14 20:56:07 open open denver-gas-prices-still-creeping-down publish 0 0 post _edit_last 2 _edit_lock 1252961767 EU Clears KKR/Bertelsman Joint Venture http://www.ethiopianreview.com/business/1635 Mon, 14 Sep 2009 20:56:23 +0000 http://www.ethiopianreview.com/business/?p=1635 PE Hub News]]> 1635 2009-09-14 13:56:23 2009-09-14 20:56:23 open open eu-clears-kkrbertelsman-joint-venture publish 0 0 post _edit_lock 1252961784 _edit_last 3 Riot Games Raises $8 Million http://www.ethiopianreview.com/business/1640 Mon, 14 Sep 2009 20:56:59 +0000 http://www.ethiopianreview.com/business/?p=1640 PE Hub News]]> 1640 2009-09-14 13:56:59 2009-09-14 20:56:59 open open riot-games-raises-8-million publish 0 0 post _edit_lock 1252961820 _edit_last 3 Mueller Water Products sets offering http://www.ethiopianreview.com/business/1637 Mon, 14 Sep 2009 20:57:20 +0000 http://www.ethiopianreview.com/business/?p=1637 Atlanta Business Chronicle ]]> 1637 2009-09-14 13:57:20 2009-09-14 20:57:20 open open mueller-water-products-sets-offering publish 0 0 post _edit_last 2 _edit_lock 1252961840 GE Energy lands $1.3 billion deal http://www.ethiopianreview.com/business/1641 Mon, 14 Sep 2009 20:57:44 +0000 http://www.ethiopianreview.com/business/?p=1641 Atlanta Business Chronicle]]> 1641 2009-09-14 13:57:44 2009-09-14 20:57:44 open open ge-energy-lands-1-3-billion-deal publish 0 0 post _edit_lock 1252961864 _edit_last 2 Cell Biosciences Raises $19 Million, Agrees To Buy Alpha Innotech http://www.ethiopianreview.com/business/1646 Mon, 14 Sep 2009 20:58:01 +0000 http://www.ethiopianreview.com/business/?p=1646 PE Hub News]]> 1646 2009-09-14 13:58:01 2009-09-14 20:58:01 open open cell-biosciences-raises-19-million-agrees-to-buy-alpha-innotech publish 0 0 post _edit_lock 1252961882 _edit_last 3 A penny saved — gas prices down http://www.ethiopianreview.com/business/1643 Mon, 14 Sep 2009 20:58:12 +0000 http://www.ethiopianreview.com/business/?p=1643 Boston Business Journal]]> 1643 2009-09-14 13:58:12 2009-09-14 20:58:12 open open a-penny-saved-%e2%80%94-gas-prices-down publish 0 0 post _edit_lock 1252961893 _edit_last 2 KBR Australian unit wins $2.3 billion contract from Chevron http://www.ethiopianreview.com/business/1651 Mon, 14 Sep 2009 20:59:16 +0000 http://www.ethiopianreview.com/business/?p=1651 Houston Business Journal]]> 1651 2009-09-14 13:59:16 2009-09-14 20:59:16 open open kbr-australian-unit-wins-2-3-billion-contract-from-chevron publish 0 0 post _edit_last 2 _edit_lock 1252962020 RightNow To Acquire HiveLive for $6 Million http://www.ethiopianreview.com/business/1652 Mon, 14 Sep 2009 20:59:22 +0000 http://www.ethiopianreview.com/business/?p=1652 PE Hub News ]]> 1652 2009-09-14 13:59:22 2009-09-14 20:59:22 open open rightnow-to-acquire-hivelive-for-6-million publish 0 0 post _edit_lock 1252961963 _edit_last 3 NYISO seeks changes to energy bidding http://www.ethiopianreview.com/business/1653 Mon, 14 Sep 2009 21:00:08 +0000 http://www.ethiopianreview.com/business/?p=1653 here. - by Pam Allen | The Business Review (Albany) ]]> 1653 2009-09-14 14:00:08 2009-09-14 21:00:08 open open nyiso-seeks-changes-to-energy-bidding publish 0 0 post _edit_lock 1252962009 _edit_last 2 Blade Network Tech Raises $10 Million http://www.ethiopianreview.com/business/1658 Mon, 14 Sep 2009 21:00:17 +0000 http://www.ethiopianreview.com/business/?p=1658 PE Hub News]]> 1658 2009-09-14 14:00:17 2009-09-14 21:00:17 open open blade-network-tech-raises-10-million publish 0 0 post _edit_lock 1252962017 _edit_last 3 Denver executive to testify before Congress on energy leasing overhaul http://www.ethiopianreview.com/business/1654 Mon, 14 Sep 2009 21:00:30 +0000 http://www.ethiopianreview.com/business/?p=1654 Denver Business Journal]]> 1654 2009-09-14 14:00:30 2009-09-14 21:00:30 open open denver-executive-to-testify-before-congress-on-energy-leasing-overhaul publish 0 0 post _edit_lock 1252962031 _edit_last 2 HBS Names Four Entrepreneurs-in-Residence http://www.ethiopianreview.com/business/1663 Mon, 14 Sep 2009 21:01:12 +0000 http://www.ethiopianreview.com/business/?p=1663 PE Hub News]]> 1663 2009-09-14 14:01:12 2009-09-14 21:01:12 open open hbs-names-four-entrepreneurs-in-residence publish 0 0 post _edit_lock 1252962116 _edit_last 3 BLM to offer first-ever geothermal lease parcel in Colorado http://www.ethiopianreview.com/business/1666 Mon, 14 Sep 2009 21:01:51 +0000 http://www.ethiopianreview.com/business/?p=1666 Denver Business Journal]]> 1666 2009-09-14 14:01:51 2009-09-14 21:01:51 open open blm-to-offer-first-ever-geothermal-lease-parcel-in-colorado publish 0 0 post _edit_lock 1252962112 _edit_last 2 Kohl's to receive EPA 'green' award http://www.ethiopianreview.com/business/1667 Mon, 14 Sep 2009 21:02:22 +0000 http://www.ethiopianreview.com/business/?p=1667 The Business Journal of Milwaukee]]> 1667 2009-09-14 14:02:22 2009-09-14 21:02:22 open open kohls-to-receive-epa-green-award publish 0 0 post _edit_lock 1252962143 _edit_last 2 Roamware Buys Macalla http://www.ethiopianreview.com/business/1672 Mon, 14 Sep 2009 21:02:35 +0000 http://www.ethiopianreview.com/business/?p=1672 PE Hub News]]> 1672 2009-09-14 14:02:35 2009-09-14 21:02:35 open open roamware-buys-macalla publish 0 0 post _edit_lock 1252962155 _edit_last 3 Florida governor OKs Port Dolphin Energy deepwater port project http://www.ethiopianreview.com/business/1668 Mon, 14 Sep 2009 21:02:42 +0000 http://www.ethiopianreview.com/business/?p=1668 Tampa Bay Business Journal]]> 1668 2009-09-14 14:02:42 2009-09-14 21:02:42 open open florida-governor-oks-port-dolphin-energy-deepwater-port-project publish 0 0 post _edit_lock 1252962163 _edit_last 2 Smilebox Buys Preclick http://www.ethiopianreview.com/business/1677 Mon, 14 Sep 2009 21:03:10 +0000 http://www.ethiopianreview.com/business/?p=1677 PE Hub News]]> 1677 2009-09-14 14:03:10 2009-09-14 21:03:10 open open smilebox-buys-preclick publish 0 0 post _edit_lock 1252962191 _edit_last 3 Constellation/EDF hearings off to slow start http://www.ethiopianreview.com/business/1678 Mon, 14 Sep 2009 21:03:50 +0000 http://www.ethiopianreview.com/business/?p=1678 Baltimore Business Journal]]> 1678 2009-09-14 14:03:50 2009-09-14 21:03:50 open open constellationedf-hearings-off-to-slow-start publish 0 0 post _edit_lock 1252962294 _edit_last 2 TrustWave Buys Vericept http://www.ethiopianreview.com/business/1684 Mon, 14 Sep 2009 21:04:07 +0000 http://www.ethiopianreview.com/business/?p=1684 PE Hub News]]> 1684 2009-09-14 14:04:07 2009-09-14 21:04:07 open open trustwave-buys-vericept publish 0 0 post _edit_lock 1252962248 _edit_last 3 Fluor venture wins $638M in contracts http://www.ethiopianreview.com/business/1679 Mon, 14 Sep 2009 21:04:10 +0000 http://www.ethiopianreview.com/business/?p=1679 Dallas Business Journal]]> 1679 2009-09-14 14:04:10 2009-09-14 21:04:10 open open fluor-venture-wins-638m-in-contracts publish 0 0 post _edit_lock 1252962250 _edit_last 2 Kentucky gets $10.4 million in energy funds http://www.ethiopianreview.com/business/1682 Mon, 14 Sep 2009 21:04:33 +0000 http://www.ethiopianreview.com/business/?p=1682 Business First of Louisville]]> 1682 2009-09-14 14:04:33 2009-09-14 21:04:33 open open kentucky-gets-10-4-million-in-energy-funds publish 0 0 post _edit_lock 1252962275 _edit_last 2 Ferrellgas completes $300M debt placement http://www.ethiopianreview.com/business/1683 Mon, 14 Sep 2009 21:04:54 +0000 http://www.ethiopianreview.com/business/?p=1683 Kansas City Business Journal]]> 1683 2009-09-14 14:04:54 2009-09-14 21:04:54 open open ferrellgas-completes-300m-debt-placement publish 0 0 post _edit_last 2 _edit_lock 1252962295 Evolva Agreed To Reverse Merger with Arpida http://www.ethiopianreview.com/business/1689 Mon, 14 Sep 2009 21:04:56 +0000 http://www.ethiopianreview.com/business/?p=1689 PE Hub News]]> 1689 2009-09-14 14:04:56 2009-09-14 21:04:56 open open evolva-agreed-to-reverse-merger-with-arpida publish 0 0 post _edit_lock 1252962297 _edit_last 3 Abbott Buying Evalve for Up To $410 Million http://www.ethiopianreview.com/business/1695 Mon, 14 Sep 2009 21:05:38 +0000 http://www.ethiopianreview.com/business/?p=1695 PE Hub News]]> 1695 2009-09-14 14:05:38 2009-09-14 21:05:38 open open abbott-buying-evalve-for-up-to-410-million publish 0 0 post _edit_lock 1252962339 _edit_last 3 Columbia Gas rate dips heading into fall http://www.ethiopianreview.com/business/1694 Mon, 14 Sep 2009 21:06:13 +0000 http://www.ethiopianreview.com/business/?p=1694 Business First of Columbus]]> 1694 2009-09-14 14:06:13 2009-09-14 21:06:13 open open columbia-gas-rate-dips-heading-into-fall publish 0 0 post _edit_lock 1252962442 _edit_last 2 Outsource Group Adds On http://www.ethiopianreview.com/business/1700 Mon, 14 Sep 2009 21:06:20 +0000 http://www.ethiopianreview.com/business/?p=1700 PE Hub News]]> 1700 2009-09-14 14:06:20 2009-09-14 21:06:20 open open outsource-group-adds-on publish 0 0 post _edit_lock 1252962381 _edit_last 3 New project from former Utek exec signs sublicense agreement http://www.ethiopianreview.com/business/1697 Mon, 14 Sep 2009 21:06:34 +0000 http://www.ethiopianreview.com/business/?p=1697 Tampa Bay Business Journal]]> 1697 2009-09-14 14:06:34 2009-09-14 21:06:34 open open new-project-from-former-utek-exec-signs-sublicense-agreement publish 0 0 post _edit_last 2 _edit_lock 1252962458 Inflexion Closes Co-Investment Fund http://www.ethiopianreview.com/business/1706 Mon, 14 Sep 2009 21:06:58 +0000 http://www.ethiopianreview.com/business/?p=1706 PE Hub News ]]> 1706 2009-09-14 14:06:58 2009-09-14 21:06:58 open open inflexion-closes-co-investment-fund publish 0 0 post _edit_last 3 _edit_lock 1252962419 Saba Software names marketing chief http://www.ethiopianreview.com/business/1701 Mon, 14 Sep 2009 21:07:11 +0000 http://www.ethiopianreview.com/business/?p=1701 Silicon Valley / San Jose Business Journal]]> 1701 2009-09-14 14:07:11 2009-09-14 21:07:11 open open saba-software-names-marketing-chief publish 0 0 post _edit_lock 1252962431 _edit_last 2 Apollo-Backed California Products Adds On http://www.ethiopianreview.com/business/1710 Mon, 14 Sep 2009 21:07:38 +0000 http://www.ethiopianreview.com/business/?p=1710 PE Hub News]]> 1710 2009-09-14 14:07:38 2009-09-14 21:07:38 open open apollo-backed-california-products-adds-on publish 0 0 post _edit_lock 1252962956 _edit_last 3 Delta projects cash down, margin up http://www.ethiopianreview.com/business/1699 Mon, 14 Sep 2009 21:07:52 +0000 http://www.ethiopianreview.com/business/?p=1699 Business Courier of Cincinnati]]> 1699 2009-09-14 14:07:52 2009-09-14 21:07:52 open open delta-projects-cash-down-margin-up publish 0 0 post _edit_lock 1252962473 _edit_last 2 Pa. workplace fatalities up 9 percent in 2008 http://www.ethiopianreview.com/business/1714 Mon, 14 Sep 2009 21:09:38 +0000 http://www.ethiopianreview.com/business/?p=1714 Pittsburgh Business Times]]> 1714 2009-09-14 14:09:38 2009-09-14 21:09:38 open open pa-workplace-fatalities-up-9-percent-in-2008 publish 0 0 post _edit_lock 1252962644 _edit_last 2 Cincinnati exec panel: Time for risks, new strategies http://www.ethiopianreview.com/business/1716 Mon, 14 Sep 2009 21:10:11 +0000 http://www.ethiopianreview.com/business/?p=1716 Business Courier of Cincinnati]]> 1716 2009-09-14 14:10:11 2009-09-14 21:10:11 open open cincinnati-exec-panel-time-for-risks-new-strategies publish 0 0 post _edit_lock 1252962612 _edit_last 2 Holland & Knight expands its community service efforts http://www.ethiopianreview.com/business/1717 Mon, 14 Sep 2009 21:10:32 +0000 http://www.ethiopianreview.com/business/?p=1717 Tampa Bay Business Journal ]]> 1717 2009-09-14 14:10:32 2009-09-14 21:10:32 open open holland-knight-expands-its-community-service-efforts publish 0 0 post _edit_last 2 _edit_lock 1252962632 MedAssurant buys Catalyst Information Technologies http://www.ethiopianreview.com/business/1721 Mon, 14 Sep 2009 21:11:07 +0000 http://www.ethiopianreview.com/business/?p=1721 Washington Business Journal]]> 1721 2009-09-14 14:11:07 2009-09-14 21:11:07 open open medassurant-buys-catalyst-information-technologies publish 0 0 post _edit_lock 1252962669 _edit_last 2 Oregon’s unemployment rate hits 12.2% http://www.ethiopianreview.com/business/1723 Mon, 14 Sep 2009 21:12:32 +0000 http://www.ethiopianreview.com/business/?p=1723 Portland Business Journal]]> 1723 2009-09-14 14:12:32 2009-09-14 21:12:32 open open oregon%e2%80%99s-unemployment-rate-hits-12-2 publish 0 0 post _edit_lock 1252962815 _edit_last 2 Pharma jobs falling at rapid clip, study concludes http://www.ethiopianreview.com/business/1724 Mon, 14 Sep 2009 21:12:49 +0000 http://www.ethiopianreview.com/business/?p=1724 Triangle Business Journal]]> 1724 2009-09-14 14:12:49 2009-09-14 21:12:49 open open pharma-jobs-falling-at-rapid-clip-study-concludes publish 0 0 post _edit_lock 1252962770 _edit_last 2 OCLC to help libraries study services for unemployed http://www.ethiopianreview.com/business/1725 Mon, 14 Sep 2009 21:13:13 +0000 http://www.ethiopianreview.com/business/?p=1725 Business First of Columbus]]> 1725 2009-09-14 14:13:13 2009-09-14 21:13:13 open open oclc-to-help-libraries-study-services-for-unemployed publish 0 0 post _edit_lock 1252962794 _edit_last 2 Budget office backs NY workforce cuts http://www.ethiopianreview.com/business/1726 Mon, 14 Sep 2009 21:13:35 +0000 http://www.ethiopianreview.com/business/?p=1726 Business First of Buffalo]]> 1726 2009-09-14 14:13:35 2009-09-14 21:13:35 open open budget-office-backs-ny-workforce-cuts publish 0 0 post _edit_lock 1252962816 _edit_last 2 Bill proposed to aid Delphi retirees http://www.ethiopianreview.com/business/1731 Mon, 14 Sep 2009 21:15:10 +0000 http://www.ethiopianreview.com/business/?p=1731 Business First of Buffalo]]> 1731 2009-09-14 14:15:10 2009-09-14 21:15:10 open open bill-proposed-to-aid-delphi-retirees publish 0 0 post _edit_last 2 _edit_lock 1252962977 Official: Intellecor CEO died of natural causes http://www.ethiopianreview.com/business/1732 Mon, 14 Sep 2009 21:15:25 +0000 http://www.ethiopianreview.com/business/?p=1732 Business First of Columbus]]> 1732 2009-09-14 14:15:25 2009-09-14 21:15:25 open open official-intellecor-ceo-died-of-natural-causes publish 0 0 post _edit_lock 1252962988 _edit_last 2 $17M grant will insure low-income parents http://www.ethiopianreview.com/business/1733 Mon, 14 Sep 2009 21:16:02 +0000 http://www.ethiopianreview.com/business/?p=1733 The Business Journal of the Greater Triad Area]]> 1733 2009-09-14 14:16:02 2009-09-14 21:16:02 open open 17m-grant-will-insure-low-income-parents publish 0 0 post _edit_lock 1252962963 _edit_last 2 Health-care grant of $17M to help low-income parents http://www.ethiopianreview.com/business/1734 Mon, 14 Sep 2009 21:16:23 +0000 http://www.ethiopianreview.com/business/?p=1734 Triangle Business Journal]]> 1734 2009-09-14 14:16:23 2009-09-14 21:16:23 open open health-care-grant-of-17m-to-help-low-income-parents publish 0 0 post _edit_lock 1252962984 _edit_last 2 Venrock PIPEs Durect http://www.ethiopianreview.com/business/1739 Mon, 14 Sep 2009 21:16:49 +0000 http://www.ethiopianreview.com/business/?p=1739 PE Hub News]]> 1739 2009-09-14 14:16:49 2009-09-14 21:16:49 open open venrock-pipes-durect publish 0 0 post _edit_lock 1252963010 _edit_last 3 Chandler/May Makes Unmanned Aircraft Services Acquisition http://www.ethiopianreview.com/business/1746 Mon, 14 Sep 2009 21:17:23 +0000 http://www.ethiopianreview.com/business/?p=1746 PE Hub News]]> 1746 2009-09-14 14:17:23 2009-09-14 21:17:23 open open chandlermay-makes-unmanned-aircraft-services-acquisition publish 0 0 post _edit_lock 1252963044 _edit_last 3 National Express Lets CVC Examine Its Books http://www.ethiopianreview.com/business/1750 Mon, 14 Sep 2009 21:18:00 +0000 http://www.ethiopianreview.com/business/?p=1750 PE Hub News]]> 1750 2009-09-14 14:18:00 2009-09-14 21:18:00 open open national-express-lets-cvc-examine-its-books publish 0 0 post _edit_lock 1252963081 _edit_last 3 Feds investigate St. Louis License Collector McMillan http://www.ethiopianreview.com/business/1742 Mon, 14 Sep 2009 21:18:19 +0000 http://www.ethiopianreview.com/business/?p=1742 St. Louis Business Journal ]]> 1742 2009-09-14 14:18:19 2009-09-14 21:18:19 open open feds-investigate-st-louis-license-collector-mcmillan publish 0 0 post _edit_lock 1252963163 _edit_last 2 Swedish Orphan Auction Moves To 2nd Round http://www.ethiopianreview.com/business/1754 Mon, 14 Sep 2009 21:18:32 +0000 http://www.ethiopianreview.com/business/?p=1754 PE Hub News]]> 1754 2009-09-14 14:18:32 2009-09-14 21:18:32 open open swedish-orphan-auction-moves-to-2nd-round publish 0 0 post _edit_lock 1252963113 _edit_last 3 3i Sells Piece of European VC Portfolio http://www.ethiopianreview.com/business/1758 Mon, 14 Sep 2009 21:19:03 +0000 http://www.ethiopianreview.com/business/?p=1758 PE Hub News]]> 1758 2009-09-14 14:19:03 2009-09-14 21:19:03 open open 3i-sells-piece-of-european-vc-portfolio publish 0 0 post _edit_last 3 _edit_lock 1252963143 Financial Preferred Shares Still Got Game http://www.ethiopianreview.com/business/1747 Mon, 14 Sep 2009 21:19:22 +0000 http://www.ethiopianreview.com/business/?p=1747 Investopedia]]> 1747 2009-09-14 14:19:22 2009-09-14 21:19:22 open open financial-preferred-shares-still-got-game publish 0 0 post _edit_lock 1252963163 _edit_last 2 Joost Fires Chairman Mike Volpi http://www.ethiopianreview.com/business/1761 Mon, 14 Sep 2009 21:19:33 +0000 http://www.ethiopianreview.com/business/?p=1761 PE Hub News]]> 1761 2009-09-14 14:19:33 2009-09-14 21:19:33 open open joost-fires-chairman-mike-volpi publish 0 0 post _edit_lock 1252963174 _edit_last 3 Soft Drink Stocks: A Refreshing Alternative http://www.ethiopianreview.com/business/1751 Mon, 14 Sep 2009 21:19:58 +0000 http://www.ethiopianreview.com/business/?p=1751 Investopedia]]> 1751 2009-09-14 14:19:58 2009-09-14 21:19:58 open open soft-drink-stocks-a-refreshing-alternative publish 0 0 post _edit_lock 1252963198 _edit_last 2 Columbia Endowment Loses 16.1%, Beats Ivy Rivals http://www.ethiopianreview.com/business/1765 Mon, 14 Sep 2009 21:20:12 +0000 http://www.ethiopianreview.com/business/?p=1765 PE Hub News]]> 1765 2009-09-14 14:20:12 2009-09-14 21:20:12 open open columbia-endowment-loses-16-1-beats-ivy-rivals publish 0 0 post _edit_last 3 _edit_lock 1252963213 Quadrangle To Focus Less on Europe, More on Asia http://www.ethiopianreview.com/business/1770 Mon, 14 Sep 2009 21:20:46 +0000 http://www.ethiopianreview.com/business/?p=1770 PE Hub News]]> 1770 2009-09-14 14:20:46 2009-09-14 21:20:46 open open quadrangle-to-focus-less-on-europe-more-on-asia publish 0 0 post _edit_lock 1252963247 _edit_last 3 Will The Real Conn's Please Stand Up http://www.ethiopianreview.com/business/1769 Mon, 14 Sep 2009 21:22:00 +0000 http://www.ethiopianreview.com/business/?p=1769 Investopedia]]> 1769 2009-09-14 14:22:00 2009-09-14 21:22:00 open open will-the-real-conns-please-stand-up publish 0 0 post _edit_lock 1252963384 _edit_last 2 Obama Tax Policy May Increase Dependence On Imported Oil http://www.ethiopianreview.com/business/1745 Mon, 14 Sep 2009 21:22:33 +0000 http://www.ethiopianreview.com/business/?p=1745 Investopedia]]> 1745 2009-09-14 14:22:33 2009-09-14 21:22:33 open open obama-tax-policy-may-increase-dependence-on-imported-oil publish 0 0 post _edit_lock 1252963420 _edit_last 2 Is Geothermal Energy The Answer? http://www.ethiopianreview.com/business/1774 Mon, 14 Sep 2009 21:23:07 +0000 http://www.ethiopianreview.com/business/?p=1774 Investopedia]]> 1774 2009-09-14 14:23:07 2009-09-14 21:23:07 open open is-geothermal-energy-the-answer publish 0 0 post _edit_lock 1252963388 _edit_last 2 Alcon Buying EsbaTech for Up To $589 Million http://www.ethiopianreview.com/business/1773 Mon, 14 Sep 2009 21:23:22 +0000 http://www.ethiopianreview.com/business/?p=1773 PE Hub News ]]> 1773 2009-09-14 14:23:22 2009-09-14 21:23:22 open open alcon-buying-esbatech-for-up-to-589-million publish 0 0 post _edit_last 3 _edit_lock 1252963402 Kraft's Sweet Deal http://www.ethiopianreview.com/business/1775 Mon, 14 Sep 2009 21:23:40 +0000 http://www.ethiopianreview.com/business/?p=1775 Investopedia]]> 1775 2009-09-14 14:23:40 2009-09-14 21:23:40 open open krafts-sweet-deal publish 0 0 post _edit_lock 1252963421 _edit_last 2 Closet Holding Buys Space-Metrics USA http://www.ethiopianreview.com/business/1782 Mon, 14 Sep 2009 21:24:31 +0000 http://www.ethiopianreview.com/business/?p=1782 PE Hub News]]> 1782 2009-09-14 14:24:31 2009-09-14 21:24:31 open open closet-holding-buys-space-metrics-usa publish 0 0 post _edit_lock 1252963471 _edit_last 3 McJunkin Red Man Buys Transmark http://www.ethiopianreview.com/business/1788 Mon, 14 Sep 2009 21:25:21 +0000 http://www.ethiopianreview.com/business/?p=1788 PE Hub News]]> 1788 2009-09-14 14:25:21 2009-09-14 21:25:21 open open mcjunkin-red-man-buys-transmark publish 0 0 post _edit_lock 1252963522 _edit_last 3 Watch Out for Falling Knives http://www.ethiopianreview.com/business/1783 Mon, 14 Sep 2009 21:25:29 +0000 http://www.ethiopianreview.com/business/?p=1783 Investopedia]]> 1783 2009-09-14 14:25:29 2009-09-14 21:25:29 open open watch-out-for-falling-knives publish 0 0 post _edit_lock 1252963592 _edit_last 2 Talbots: Still A Stock To Avoid http://www.ethiopianreview.com/business/1784 Mon, 14 Sep 2009 21:26:04 +0000 http://www.ethiopianreview.com/business/?p=1784 Investopedia]]> 1784 2009-09-14 14:26:04 2009-09-14 21:26:04 open open talbots-still-a-stock-to-avoid publish 0 0 post _edit_lock 1252963628 _edit_last 2 Bridgepoint Education Cancels Public Offering http://www.ethiopianreview.com/business/1793 Mon, 14 Sep 2009 21:26:10 +0000 http://www.ethiopianreview.com/business/?p=1793 PE Hub News]]> 1793 2009-09-14 14:26:10 2009-09-14 21:26:10 open open bridgepoint-education-cancels-public-offering publish 0 0 post _edit_lock 1252963571 _edit_last 3 Time To Check Out Men's Wearhouse? http://www.ethiopianreview.com/business/1787 Mon, 14 Sep 2009 21:26:35 +0000 http://www.ethiopianreview.com/business/?p=1787 Investopedia]]> 1787 2009-09-14 14:26:35 2009-09-14 21:26:35 open open time-to-check-out-mens-wearhouse publish 0 0 post _edit_lock 1252963596 _edit_last 2 New Oil Discoveries You Should Know http://www.ethiopianreview.com/business/1789 Mon, 14 Sep 2009 21:27:16 +0000 http://www.ethiopianreview.com/business/?p=1789 Investopedia]]> 1789 2009-09-14 14:27:16 2009-09-14 21:27:16 open open new-oil-discoveries-you-should-know publish 0 0 post _edit_lock 1252963637 _edit_last 2 Crédit Agricole Buys Into Italian Green Energy Producer http://www.ethiopianreview.com/business/1797 Mon, 14 Sep 2009 21:27:48 +0000 http://www.ethiopianreview.com/business/?p=1797 PE Hub News]]> 1797 2009-09-14 14:27:48 2009-09-14 21:27:48 open open credit-agricole-buys-into-italian-green-energy-producer publish 0 0 post _edit_lock 1252963669 _edit_last 3 Mark Canha Joins Avaya http://www.ethiopianreview.com/business/1804 Mon, 14 Sep 2009 21:28:49 +0000 http://www.ethiopianreview.com/business/?p=1804 PE Hub News]]> 1804 2009-09-14 14:28:49 2009-09-14 21:28:49 open open mark-canha-joins-avaya publish 0 0 post _edit_last 3 _edit_lock 1252963729 Oak Hill Raises $1.13 Billion for Distressed Debt Fund http://www.ethiopianreview.com/business/1808 Mon, 14 Sep 2009 21:29:22 +0000 http://www.ethiopianreview.com/business/?p=1808 PE Hub News]]> 1808 2009-09-14 14:29:22 2009-09-14 21:29:22 open open oak-hill-raises-1-13-billion-for-distressed-debt-fund publish 0 0 post _edit_lock 1252963762 _edit_last 3 Natural Foods Shares Overvalued http://www.ethiopianreview.com/business/1800 Mon, 14 Sep 2009 21:29:51 +0000 http://www.ethiopianreview.com/business/?p=1800 Investopedia]]> 1800 2009-09-14 14:29:51 2009-09-14 21:29:51 open open natural-foods-shares-overvalued publish 0 0 post _edit_last 2 _edit_lock 1252963854 HIG Capital Says It Could Buy Molex France http://www.ethiopianreview.com/business/1812 Mon, 14 Sep 2009 21:29:55 +0000 http://www.ethiopianreview.com/business/?p=1812 PE Hub News]]> 1812 2009-09-14 14:29:55 2009-09-14 21:29:55 open open hig-capital-says-it-could-buy-molex-france publish 0 0 post _edit_lock 1252963796 _edit_last 3 Healthy Income From European Preferreds http://www.ethiopianreview.com/business/1803 Mon, 14 Sep 2009 21:30:27 +0000 http://www.ethiopianreview.com/business/?p=1803 Investopedia]]> 1803 2009-09-14 14:30:27 2009-09-14 21:30:27 open open healthy-income-from-european-preferreds publish 0 0 post _edit_last 2 _edit_lock 1252963891 Platinum Equity Buys Alcan Stake http://www.ethiopianreview.com/business/1816 Mon, 14 Sep 2009 21:30:34 +0000 http://www.ethiopianreview.com/business/?p=1816 PE Hub News]]> 1816 2009-09-14 14:30:34 2009-09-14 21:30:34 open open platinum-equity-buys-alcan-stake publish 0 0 post _edit_lock 1252963835 _edit_last 3 Four Stocks That'll Deliver http://www.ethiopianreview.com/business/1805 Mon, 14 Sep 2009 21:31:00 +0000 http://www.ethiopianreview.com/business/?p=1805 Investopedia]]> 1805 2009-09-14 14:31:00 2009-09-14 21:31:00 open open four-stocks-thatll-deliver publish 0 0 post _edit_lock 1252963861 _edit_last 2 Brown Rudnick poaches Cooley IP team http://www.ethiopianreview.com/business/1809 Mon, 14 Sep 2009 21:31:29 +0000 http://www.ethiopianreview.com/business/?p=1809 Boston Business Journal]]> 1809 2009-09-14 14:31:29 2009-09-14 21:31:29 open open brown-rudnick-poaches-cooley-ip-team publish 0 0 post _edit_lock 1252963890 _edit_last 2 Shell CEO Peter Voser Calgary Speech 11 September 2009 http://www.ethiopianreview.com/business/1821 Mon, 14 Sep 2009 21:32:27 +0000 http://www.ethiopianreview.com/business/?p=1821 RoyalDutchShellplc.com]]> 1821 2009-09-14 14:32:27 2009-09-14 21:32:27 open open shell-ceo-peter-voser-calgary-speech-11-september-2009 publish 0 0 post _edit_last 3 _edit_lock 1252963948 Planned Parenthood sues over new abortion restrictions http://www.ethiopianreview.com/business/1823 Mon, 14 Sep 2009 21:33:30 +0000 http://www.ethiopianreview.com/business/?p=1823 Phoenix Business Journal]]> 1823 2009-09-14 14:33:30 2009-09-14 21:33:30 open open planned-parenthood-sues-over-new-abortion-restrictions publish 0 0 post _edit_lock 1252964195 _edit_last 2 Former U.S. Attorney for Arizona Diane Humetewa joins Squire Sanders http://www.ethiopianreview.com/business/1826 Mon, 14 Sep 2009 21:33:50 +0000 http://www.ethiopianreview.com/business/?p=1826 Phoenix Business Journal]]> 1826 2009-09-14 14:33:50 2009-09-14 21:33:50 open open former-u-s-attorney-for-arizona-diane-humetewa-joins-squire-sanders publish 0 0 post _edit_lock 1252964030 _edit_last 2 Romanoff to kick off U.S. Senate bid Wednesday http://www.ethiopianreview.com/business/1827 Mon, 14 Sep 2009 21:34:11 +0000 http://www.ethiopianreview.com/business/?p=1827 Denver Business Journal]]> 1827 2009-09-14 14:34:11 2009-09-14 21:34:11 open open romanoff-to-kick-off-u-s-senate-bid-wednesday publish 0 0 post _edit_lock 1252964052 _edit_last 2 Factery raises $1.2M to find facts in real time http://www.ethiopianreview.com/business/1830 Mon, 14 Sep 2009 21:34:14 +0000 http://www.ethiopianreview.com/business/?p=1830 VentureBeat ]]> 1830 2009-09-14 14:34:14 2009-09-14 21:34:14 open open factery-raises-1-2m-to-find-facts-in-real-time publish 0 0 post _edit_lock 1252964054 _edit_last 3 Etheredge’s securities fraud case postponed http://www.ethiopianreview.com/business/1828 Mon, 14 Sep 2009 21:34:40 +0000 http://www.ethiopianreview.com/business/?p=1828 Wichita Business Journal]]> 1828 2009-09-14 14:34:40 2009-09-14 21:34:40 open open etheredge%e2%80%99s-securities-fraud-case-postponed publish 0 0 post _edit_lock 1252964082 _edit_last 2 Storytelling startup Massiverse set to launch its first cross-media tale http://www.ethiopianreview.com/business/1835 Mon, 14 Sep 2009 21:35:25 +0000 http://www.ethiopianreview.com/business/?p=1835 VentureBeat ]]> 1835 2009-09-14 14:35:25 2009-09-14 21:35:25 open open click-here-to-find-out-more-storytelling-startup-massiverse-set-to-launch-its-first-cross-media-tale publish 0 0 post _edit_lock 1252964602 _edit_last 3 Intel confirms management shake-up as EMC hires away executive http://www.ethiopianreview.com/business/1840 Mon, 14 Sep 2009 21:37:06 +0000 http://www.ethiopianreview.com/business/?p=1840 VentureBeat ]]> 1840 2009-09-14 14:37:06 2009-09-14 21:37:06 open open click-here-to-find-out-more-intel-confirms-management-shake-up-as-emc-hires-away-executive publish 0 0 post _edit_lock 1252964260 _edit_last 3 Trammell Crow facility in Houston is a late bloomer http://www.ethiopianreview.com/business/1843 Mon, 14 Sep 2009 21:37:39 +0000 http://www.ethiopianreview.com/business/?p=1843 Dallas Business Journal ]]> 1843 2009-09-14 14:37:39 2009-09-14 21:37:39 open open trammell-crow-facility-in-houston-is-a-late-bloomer publish 0 0 post _edit_lock 1252964384 _edit_last 2 Win when you lose - 10 guidelines for loss analysis http://www.ethiopianreview.com/business/1848 Mon, 14 Sep 2009 21:39:04 +0000 http://www.ethiopianreview.com/business/?p=1848 VentureBeat ]]> 1848 2009-09-14 14:39:04 2009-09-14 21:39:04 open open win-when-you-lose-10-guidelines-for-loss-analysis publish 0 0 post _edit_lock 1252964371 _edit_last 3 Franklin train terminal awaits $1.6M loan http://www.ethiopianreview.com/business/1846 Mon, 14 Sep 2009 21:39:28 +0000 http://www.ethiopianreview.com/business/?p=1846 Dayton Business Journal]]> 1846 2009-09-14 14:39:28 2009-09-14 21:39:28 open open franklin-train-terminal-awaits-1-6m-loan publish 0 0 post _edit_lock 1252964372 _edit_last 2 Estes Express buys YRC site http://www.ethiopianreview.com/business/1847 Mon, 14 Sep 2009 21:39:59 +0000 http://www.ethiopianreview.com/business/?p=1847 Memphis Business Journal]]> 1847 2009-09-14 14:39:59 2009-09-14 21:39:59 open open estes-express-buys-yrc-site publish 0 0 post _edit_lock 1252964400 _edit_last 2 Lingle: Politicians' role in Superferry 'pathetic' http://www.ethiopianreview.com/business/1849 Mon, 14 Sep 2009 21:40:26 +0000 http://www.ethiopianreview.com/business/?p=1849 Pacific Business News (Honolulu)]]> 1849 2009-09-14 14:40:26 2009-09-14 21:40:26 open open lingle-politicians-role-in-superferry-pathetic publish 0 0 post _edit_lock 1252964427 _edit_last 2 InXpo raises $9M for virtual events business expansion http://www.ethiopianreview.com/business/1855 Mon, 14 Sep 2009 21:40:48 +0000 http://www.ethiopianreview.com/business/?p=1855 VentureBeat ]]> 1855 2009-09-14 14:40:48 2009-09-14 21:40:48 open open inxpo-raises-9m-for-virtual-events-business-expansion publish 0 0 post _edit_last 3 _edit_lock 1252964450 Huge cost savings expected on Doyle Drive project http://www.ethiopianreview.com/business/1858 Mon, 14 Sep 2009 21:41:29 +0000 http://www.ethiopianreview.com/business/?p=1858 San Francisco Business Times]]> 1858 2009-09-14 14:41:29 2009-09-14 21:41:29 open open huge-cost-savings-expected-on-doyle-drive-project publish 0 0 post _edit_lock 1252964613 _edit_last 2 Metro approves work on Orange, Blue lines http://www.ethiopianreview.com/business/1862 Mon, 14 Sep 2009 21:42:50 +0000 http://www.ethiopianreview.com/business/?p=1862 Washington Business Journal ]]> 1862 2009-09-14 14:42:50 2009-09-14 21:42:50 open open metro-approves-work-on-orange-blue-lines publish 0 0 post _edit_lock 1252964637 _edit_last 2 Capitol Corridor adds bike racks to trains http://www.ethiopianreview.com/business/1861 Mon, 14 Sep 2009 21:42:51 +0000 http://www.ethiopianreview.com/business/?p=1861 - by Melanie Turner | Sacramento Business Journal]]> 1861 2009-09-14 14:42:51 2009-09-14 21:42:51 open open capitol-corridor-adds-bike-racks-to-trains publish 0 0 post _edit_lock 1252964638 _edit_last 2 Hawaii harbors group restructures http://www.ethiopianreview.com/business/1863 Mon, 14 Sep 2009 21:42:54 +0000 http://www.ethiopianreview.com/business/?p=1863 Pacific Business News (Honolulu)]]> 1863 2009-09-14 14:42:54 2009-09-14 21:42:54 open open hawaii-harbors-group-restructures publish 0 0 post _edit_lock 1252964639 _edit_last 2 DisplayLink raises $8M for network display chips http://www.ethiopianreview.com/business/1866 Mon, 14 Sep 2009 21:42:59 +0000 http://www.ethiopianreview.com/business/?p=1866 VentureBeat]]> 1866 2009-09-14 14:42:59 2009-09-14 21:42:59 open open displaylink-raises-8m-for-network-display-chips publish 0 0 post _edit_lock 1252964581 _edit_last 3 Ozmo takes $7.5M for wireless personal area networks http://www.ethiopianreview.com/business/1873 Mon, 14 Sep 2009 21:46:02 +0000 http://www.ethiopianreview.com/business/?p=1873 VentureBeat]]> 1873 2009-09-14 14:46:02 2009-09-14 21:46:02 open open ozmo-takes-7-5m-for-wireless-personal-area-networks publish 0 0 post _edit_last 3 _edit_lock 1252964764 With Penn & Teller, your iPhone does card tricks too http://www.ethiopianreview.com/business/1876 Mon, 14 Sep 2009 21:47:01 +0000 http://www.ethiopianreview.com/business/?p=1876 VentureBeat ]]> 1876 2009-09-14 14:47:01 2009-09-14 21:47:01 open open tc50-with-penn-teller-your-iphone-does-card-tricks-too publish 0 0 post _edit_last 3 _edit_lock 1252965095 Story Something creates personal stories for your children http://www.ethiopianreview.com/business/1879 Mon, 14 Sep 2009 21:48:38 +0000 http://www.ethiopianreview.com/business/?p=1879 VentureBeat ]]> 1879 2009-09-14 14:48:38 2009-09-14 21:48:38 open open tc50-story-something-creates-personal-stories-for-your-children publish 0 0 post _edit_lock 1252965073 _edit_last 3 Symark acquires BeyondTrust in run up to IPO http://www.ethiopianreview.com/business/1882 Mon, 14 Sep 2009 21:49:29 +0000 http://www.ethiopianreview.com/business/?p=1882 VentureBeat ]]> 1882 2009-09-14 14:49:29 2009-09-14 21:49:29 open open symark-acquires-beyondtrust-in-run-up-to-ipo publish 0 0 post _edit_lock 1252964969 _edit_last 3 Durect holds follow-on private sale to raise $10M http://www.ethiopianreview.com/business/1885 Mon, 14 Sep 2009 21:50:19 +0000 http://www.ethiopianreview.com/business/?p=1885 VentureBeat ]]> 1885 2009-09-14 14:50:19 2009-09-14 21:50:19 open open durect-holds-follow-on-private-sale-to-raise-10m publish 0 0 post _edit_lock 1252965020 _edit_last 3 ClaseMovil launches a virtual world for learning http://www.ethiopianreview.com/business/1888 Mon, 14 Sep 2009 21:52:39 +0000 http://www.ethiopianreview.com/business/?p=1888 VentureBeat ]]> 1888 2009-09-14 14:52:39 2009-09-14 21:52:39 open open clasemovil-launches-a-virtual-world-for-learning publish 0 0 post _edit_lock 1252965160 _edit_last 3 Gear Six takes $4M for caching technology http://www.ethiopianreview.com/business/1893 Mon, 14 Sep 2009 21:53:55 +0000 http://www.ethiopianreview.com/business/?p=1893 VentureBeat ]]> 1893 2009-09-14 14:53:55 2009-09-14 21:53:55 open open gear-six-takes-4m-for-caching-technology publish 0 0 post _edit_lock 1252965236 _edit_last 3 ToonsTunes is like GarageBand for kids http://www.ethiopianreview.com/business/1896 Mon, 14 Sep 2009 21:56:14 +0000 http://www.ethiopianreview.com/business/?p=1896 VentureBeat ]]> 1896 2009-09-14 14:56:14 2009-09-14 21:56:14 open open toonstunes-is-like-garageband-for-kids publish 0 0 post _edit_lock 1252965375 _edit_last 3 Battle of social networks: How long can Orkut keep Facebook at bay in Brazil? http://www.ethiopianreview.com/business/1899 Mon, 14 Sep 2009 21:57:35 +0000 http://www.ethiopianreview.com/business/?p=1899 VentureBeat ]]> 1899 2009-09-14 14:57:35 2009-09-14 21:57:35 open open battle-of-social-networks-how-long-can-orkut-keep-facebook-at-bay-in-brazil publish 0 0 post _edit_lock 1252965456 _edit_last 3 Sealtale offers a personalized way to declare brand loyalty http://www.ethiopianreview.com/business/1902 Mon, 14 Sep 2009 21:58:50 +0000 http://www.ethiopianreview.com/business/?p=1902 VentureBeat ]]> 1902 2009-09-14 14:58:50 2009-09-14 21:58:50 open open sealtale-offers-a-personalized-way-to-declare-brand-loyalty publish 0 0 post _edit_lock 1252965532 _edit_last 3 It’s TechCrunch50 all day on VentureBeat http://www.ethiopianreview.com/business/1905 Mon, 14 Sep 2009 22:03:19 +0000 http://www.ethiopianreview.com/business/?p=1905 VentureBeat ]]> 1905 2009-09-14 15:03:19 2009-09-14 22:03:19 open open it%e2%80%99s-techcrunch50-all-day-on-venturebeat publish 0 0 post _edit_lock 1252965858 _edit_last 3 oDesk Challenge gives startups a staffing kickstart http://www.ethiopianreview.com/business/1910 Mon, 14 Sep 2009 22:05:33 +0000 http://www.ethiopianreview.com/business/?p=1910 VentureBeat ]]> 1910 2009-09-14 15:05:33 2009-09-14 22:05:33 open open odesk-challenge-gives-startups-a-staffing-kickstart publish 0 0 post _edit_lock 1252965934 _edit_last 3 Microsoft’s next attack on Google: Bing gets visual search http://www.ethiopianreview.com/business/1913 Mon, 14 Sep 2009 22:06:24 +0000 http://www.ethiopianreview.com/business/?p=1913 VentureBeat ]]> 1913 2009-09-14 15:06:24 2009-09-14 22:06:24 open open microsoft%e2%80%99s-next-attack-on-google-bing-gets-visual-search publish 0 0 post _edit_lock 1252965984 _edit_last 3 iTwin allows encrypted, cableless file-sharing http://www.ethiopianreview.com/business/1916 Mon, 14 Sep 2009 22:07:25 +0000 http://www.ethiopianreview.com/business/?p=1916 VentureBeat ]]> 1916 2009-09-14 15:07:25 2009-09-14 22:07:25 open open itwin-allows-encrypted-cableless-file-sharing publish 0 0 post _edit_lock 1252966046 _edit_last 3 FluidHtml builds a more web-friendly version of Flash http://www.ethiopianreview.com/business/1919 Mon, 14 Sep 2009 22:08:24 +0000 http://www.ethiopianreview.com/business/?p=1919 VentureBeat ]]> 1919 2009-09-14 15:08:24 2009-09-14 22:08:24 open open fluidhtml-builds-a-more-web-friendly-version-of-flash publish 0 0 post _edit_lock 1252966104 _edit_last 3 Toybots helps toys come to life with Internet connectivity http://www.ethiopianreview.com/business/1922 Mon, 14 Sep 2009 22:09:39 +0000 http://www.ethiopianreview.com/business/?p=1922 VentureBeat ]]> 1922 2009-09-14 15:09:39 2009-09-14 22:09:39 open open toybots-helps-toys-come-to-life-with-internet-connectivity publish 0 0 post _edit_lock 1252966179 _edit_last 3 Spawn Labs lets you play your console games on your laptop http://www.ethiopianreview.com/business/1925 Mon, 14 Sep 2009 22:10:28 +0000 http://www.ethiopianreview.com/business/?p=1925 VentureBeat ]]> 1925 2009-09-14 15:10:28 2009-09-14 22:10:28 open open spawn-labs-lets-you-play-your-console-games-on-your-laptop publish 0 0 post _edit_lock 1252966228 _edit_last 3 Clicker is a TV guide for the Internet age http://www.ethiopianreview.com/business/1928 Mon, 14 Sep 2009 22:11:16 +0000 http://www.ethiopianreview.com/business/?p=1928 VentureBeat ]]> 1928 2009-09-14 15:11:16 2009-09-14 22:11:16 open open clicker-is-a-tv-guide-for-the-internet-age publish 0 0 post _edit_lock 1252966277 _edit_last 3 acebook adds support for Twitter-like @ symbol http://www.ethiopianreview.com/business/1931 Mon, 14 Sep 2009 22:12:08 +0000 http://www.ethiopianreview.com/business/?p=1931 VentureBeat ]]> 1931 2009-09-14 15:12:08 2009-09-14 22:12:08 open open acebook-adds-support-for-twitter-like-symbol publish 0 0 post _edit_lock 1252966329 _edit_last 3 Zoove dials up $5.2M for mobile marketing tricks http://www.ethiopianreview.com/business/1934 Mon, 14 Sep 2009 22:13:02 +0000 http://www.ethiopianreview.com/business/?p=1934 VentureBeat ]]> 1934 2009-09-14 15:13:02 2009-09-14 22:13:02 open open zoove-dials-up-5-2m-for-mobile-marketing-tricks publish 0 0 post _edit_lock 1252966382 _edit_last 3 Flickr Galleries let you curate public photos, videos http://www.ethiopianreview.com/business/1937 Mon, 14 Sep 2009 22:13:56 +0000 http://www.ethiopianreview.com/business/?p=1937 VentureBeat ]]> 1937 2009-09-14 15:13:56 2009-09-14 22:13:56 open open flickr-galleries-let-you-curate-public-photos-videos publish 0 0 post _edit_lock 1252966436 _edit_last 3 Brazilian Busk sorts your daily news digest by keyword http://www.ethiopianreview.com/business/1940 Mon, 14 Sep 2009 22:14:42 +0000 http://www.ethiopianreview.com/business/?p=1940 VentureBeat ]]> 1940 2009-09-14 15:14:42 2009-09-14 22:14:42 open open brazilian-busk-sorts-your-daily-news-digest-by-keyword publish 0 0 post _edit_lock 1252966503 _edit_last 3 Esterline names Lawrence as new CEO http://www.ethiopianreview.com/business/1944 Mon, 14 Sep 2009 22:17:20 +0000 http://www.ethiopianreview.com/business/?p=1944 Puget Sound Business Journal (Seattle)]]> 1944 2009-09-14 15:17:20 2009-09-14 22:17:20 open open esterline-names-lawrence-as-new-ceo publish 0 0 post _edit_lock 1252966641 _edit_last 3 Enterprise Growth Partners buys Hadley Pottery assets http://www.ethiopianreview.com/business/1947 Mon, 14 Sep 2009 22:18:10 +0000 http://www.ethiopianreview.com/business/?p=1947 Business First of Louisville]]> 1947 2009-09-14 15:18:10 2009-09-14 22:18:10 open open enterprise-growth-partners-buys-hadley-pottery-assets publish 0 0 post _edit_lock 1252966691 _edit_last 3 New joint venture will create 50 jobs in Hutchinson http://www.ethiopianreview.com/business/1950 Mon, 14 Sep 2009 22:19:51 +0000 http://www.ethiopianreview.com/business/?p=1950 Bizjournals.com ]]> 1950 2009-09-14 15:19:51 2009-09-14 22:19:51 open open new-joint-venture-will-create-50-jobs-in-hutchinson publish 0 0 post _edit_lock 1252966792 _edit_last 3 MN manufacturer Sick Inc. to close Ohio plant http://www.ethiopianreview.com/business/1953 Mon, 14 Sep 2009 22:21:39 +0000 http://www.ethiopianreview.com/business/?p=1953 Minneapolis / St. Paul Business Journal]]> 1953 2009-09-14 15:21:39 2009-09-14 22:21:39 open open mn-manufacturer-sick-inc-to-close-ohio-plant publish 0 0 post _edit_lock 1252966899 _edit_last 3 Xymox buys Monopanel in West Allis http://www.ethiopianreview.com/business/1956 Mon, 14 Sep 2009 22:22:57 +0000 http://www.ethiopianreview.com/business/?p=1956 The Business Journal of Milwaukee]]> 1956 2009-09-14 15:22:57 2009-09-14 22:22:57 open open xymox-buys-monopanel-in-west-allis publish 0 0 post _edit_lock 1252966979 _edit_last 3 GM unveils ads with Chairman Whitacre http://www.ethiopianreview.com/business/1959 Mon, 14 Sep 2009 22:23:57 +0000 http://www.ethiopianreview.com/business/?p=1959 St. Louis Business Journal ]]> 1959 2009-09-14 15:23:57 2009-09-14 22:23:57 open open gm-unveils-ads-with-chairman-whitacre publish 0 0 post _edit_lock 1252967039 _edit_last 3 General Motors CEO to speak at NSU http://www.ethiopianreview.com/business/1962 Tue, 15 Sep 2009 00:40:08 +0000 http://www.ethiopianreview.com/business/?p=1962 South Florida Business Journal]]> 1962 2009-09-14 17:40:08 2009-09-15 00:40:08 open open general-motors-ceo-to-speak-at-nsu publish 0 0 post _edit_lock 1252975209 _edit_last 3 Oshkosh gets third order for Army contract http://www.ethiopianreview.com/business/1965 Tue, 15 Sep 2009 00:41:14 +0000 http://www.ethiopianreview.com/business/?p=1965 The Business Journal of Milwaukee]]> 1965 2009-09-14 17:41:14 2009-09-15 00:41:14 open open oshkosh-gets-third-order-for-army-contract publish 0 0 post _edit_lock 1252975275 _edit_last 3 Valero, Darling jointly plan biodiesel plant http://www.ethiopianreview.com/business/1968 Tue, 15 Sep 2009 00:42:15 +0000 http://www.ethiopianreview.com/business/?p=1968 San Antonio Business Journal]]> 1968 2009-09-14 17:42:15 2009-09-15 00:42:15 open open valero-darling-jointly-plan-biodiesel-plant publish 0 0 post _edit_lock 1252975335 _edit_last 3 Natus Medical acquires Alpine Biomed http://www.ethiopianreview.com/business/1971 Tue, 15 Sep 2009 00:43:05 +0000 http://www.ethiopianreview.com/business/?p=1971 Silicon Valley / San Jose Business Journal]]> 1971 2009-09-14 17:43:05 2009-09-15 00:43:05 open open natus-medical-acquires-alpine-biomed publish 0 0 post _edit_lock 1252975386 _edit_last 3 Eulau named CFO for Sanmina-SCI http://www.ethiopianreview.com/business/1974 Tue, 15 Sep 2009 00:43:46 +0000 http://www.ethiopianreview.com/business/?p=1974 Silicon Valley / San Jose Business Journal]]> 1974 2009-09-14 17:43:46 2009-09-15 00:43:46 open open eulau-named-cfo-for-sanmina-sci publish 0 0 post _edit_lock 1252975427 _edit_last 3 Former Angio exec rejoins Hobbs at Delcath http://www.ethiopianreview.com/business/1977 Tue, 15 Sep 2009 00:45:03 +0000 http://www.ethiopianreview.com/business/?p=1977 The Business Review (Albany)]]> 1977 2009-09-14 17:45:03 2009-09-15 00:45:03 open open former-angio-exec-rejoins-hobbs-at-delcath publish 0 0 post _edit_lock 1252975504 _edit_last 3 Solutia raises guidance http://www.ethiopianreview.com/business/1987 Tue, 15 Sep 2009 00:52:00 +0000 http://www.ethiopianreview.com/business/?p=1987 St. Louis Business Journal]]> 1987 2009-09-14 17:52:00 2009-09-15 00:52:00 open open solutia-raises-guidance publish 0 0 post _edit_last 3 _edit_lock 1252975922 5to1 gives publishers more control over their ads http://www.ethiopianreview.com/business/1990 Tue, 15 Sep 2009 00:53:17 +0000 http://www.ethiopianreview.com/business/?p=1990 VentureBeat ]]> 1990 2009-09-14 17:53:17 2009-09-15 00:53:17 open open 5to1-gives-publishers-more-control-over-their-ads publish 0 0 post _edit_last 3 _edit_lock 1252975998 DataXu optimizes ad campaigns in real-time http://www.ethiopianreview.com/business/1993 Tue, 15 Sep 2009 00:54:29 +0000 http://www.ethiopianreview.com/business/?p=1993 VentureBeat ]]> 1993 2009-09-14 17:54:29 2009-09-15 00:54:29 open open dataxu-optimizes-ad-campaigns-in-real-time publish 0 0 post _edit_lock 1252976070 _edit_last 3 SeatGeek tells you when to buy tickets http://www.ethiopianreview.com/business/1996 Tue, 15 Sep 2009 00:55:29 +0000 http://www.ethiopianreview.com/business/?p=1996 VentureBeat ]]> 1996 2009-09-14 17:55:29 2009-09-15 00:55:29 open open seatgeek-tells-you-when-to-buy-tickets publish 0 0 post _edit_lock 1252976130 _edit_last 3 HealthyWage lets companies incentivize employees to stay fit http://www.ethiopianreview.com/business/1999 Tue, 15 Sep 2009 00:56:54 +0000 http://www.ethiopianreview.com/business/?p=1999 VentureBeat ]]> 1999 2009-09-14 17:56:54 2009-09-15 00:56:54 open open healthywage-lets-companies-incentivize-employees-to-stay-fit publish 0 0 post _edit_lock 1252976214 _edit_last 3 Itron teams with OpenPeak to bring smart meter data to touchscreens http://www.ethiopianreview.com/business/2002 Tue, 15 Sep 2009 00:58:09 +0000 http://www.ethiopianreview.com/business/?p=2002 VentureBeat ]]> 2002 2009-09-14 17:58:09 2009-09-15 00:58:09 open open click-here-to-find-out-more-itron-teams-with-openpeak-to-bring-smart-meter-data-to-touchscreens publish 0 0 post _edit_lock 1252976299 _edit_last 3 RackUp sells gift cards in fast online auctions http://www.ethiopianreview.com/business/2006 Tue, 15 Sep 2009 00:59:31 +0000 http://www.ethiopianreview.com/business/?p=2006 VentureBeat]]> 2006 2009-09-14 17:59:31 2009-09-15 00:59:31 open open rackup-sells-gift-cards-in-fast-online-auctions publish 0 0 post _edit_lock 1252976372 _edit_last 3 Udorse lets you tag your photos with product endorsements http://www.ethiopianreview.com/business/2009 Tue, 15 Sep 2009 01:00:45 +0000 http://www.ethiopianreview.com/business/?p=2009 VentureBeat ]]> 2009 2009-09-14 18:00:45 2009-09-15 01:00:45 open open udorse-lets-you-tag-your-photos-with-product-endorsements publish 0 0 post _edit_lock 1252976446 _edit_last 3 Google Fast Flip scrolls through the web like the pages of a magazine http://www.ethiopianreview.com/business/2012 Tue, 15 Sep 2009 01:02:07 +0000 http://www.ethiopianreview.com/business/?p=2012 VentureBeat ]]> 2012 2009-09-14 18:02:07 2009-09-15 01:02:07 open open google-fast-flip-scrolls-through-the-web-like-the-pages-of-a-magazine publish 0 0 post _edit_lock 1252976528 _edit_last 3 Three firms buy up 3i’s European portfolio http://www.ethiopianreview.com/business/2016 Tue, 15 Sep 2009 01:03:05 +0000 http://www.ethiopianreview.com/business/?p=2016 VentureBeat ]]> 2016 2009-09-14 18:03:05 2009-09-15 01:03:05 open open three-firms-buy-up-3i%e2%80%99s-european-portfolio publish 0 0 post _edit_lock 1252976586 _edit_last 3 iMo turns the iPhone into a joystick for your PC games http://www.ethiopianreview.com/business/2019 Tue, 15 Sep 2009 01:27:25 +0000 http://www.ethiopianreview.com/business/?p=2019 VentureBeat ]]> 2019 2009-09-14 18:27:25 2009-09-15 01:27:25 open open imo-turns-the-iphone-into-a-joystick-for-your-pc-games publish 0 0 post _edit_lock 1252978047 _edit_last 3 Need someone to mow your lawn? Redbeacon creates a market for local services http://www.ethiopianreview.com/business/2022 Tue, 15 Sep 2009 01:28:25 +0000 http://www.ethiopianreview.com/business/?p=2022 VentureBeat ]]> 2022 2009-09-14 18:28:25 2009-09-15 01:28:25 open open need-someone-to-mow-your-lawn-redbeacon-creates-a-market-for-local-services publish 0 0 post _edit_lock 1252978107 _edit_last 3 Yext transcribes, searches phone calls for local businesses http://www.ethiopianreview.com/business/2025 Tue, 15 Sep 2009 01:29:50 +0000 http://www.ethiopianreview.com/business/?p=2025 VentureBeat]]> 2025 2009-09-14 18:29:50 2009-09-15 01:29:50 open open yext-transcribes-searches-phone-calls-for-local-businesses publish 0 0 post _edit_lock 1252978191 _edit_last 3 Video-sharing site Veoh wins suit against Universal http://www.ethiopianreview.com/business/2028 Tue, 15 Sep 2009 01:30:44 +0000 http://www.ethiopianreview.com/business/?p=2028 VentureBeat]]> 2028 2009-09-14 18:30:44 2009-09-15 01:30:44 open open video-sharing-site-veoh-wins-suit-against-universal publish 0 0 post _edit_lock 1252978245 _edit_last 3 Refmob gives customers a slice of the referral market http://www.ethiopianreview.com/business/2031 Tue, 15 Sep 2009 01:32:55 +0000 http://www.ethiopianreview.com/business/?p=2031 VentureBeat ]]> 2031 2009-09-14 18:32:55 2009-09-15 01:32:55 open open refmob-gives-customers-a-slice-of-the-referral-market publish 0 0 post _edit_lock 1252978376 _edit_last 3 Localbacon wants to fix job sites by making job-seekers pay http://www.ethiopianreview.com/business/2034 Tue, 15 Sep 2009 01:36:24 +0000 http://www.ethiopianreview.com/business/?p=2034 VentureBeat ]]> 2034 2009-09-14 18:36:24 2009-09-15 01:36:24 open open localbacon-wants-to-fix-job-sites-by-making-job-seekers-pay publish 0 0 post _edit_lock 1252978586 _edit_last 3 5 O’Clock Roundup: China may get more iPhones, TypePad goes real-time, stuff not about TechCrunch http://www.ethiopianreview.com/business/2037 Tue, 15 Sep 2009 01:38:27 +0000 http://www.ethiopianreview.com/business/?p=2037 VentureBeat ]]> 2037 2009-09-14 18:38:27 2009-09-15 01:38:27 open open 5-o%e2%80%99clock-roundup-china-may-get-more-iphones-typepad-goes-real-time-stuff-not-about-techcrunch publish 0 0 post _edit_lock 1252978708 _edit_last 3 Mota wants to curb “lemons,” fix the used car market http://www.ethiopianreview.com/business/2040 Tue, 15 Sep 2009 01:40:19 +0000 http://www.ethiopianreview.com/business/?p=2040 VentureBeat]]> 2040 2009-09-14 18:40:19 2009-09-15 01:40:19 open open mota-wants-to-curb-%e2%80%9clemons%e2%80%9d-fix-the-used-car-market publish 0 0 post _edit_lock 1252978820 _edit_last 3 Startups can trade favors at TheSwop.com http://www.ethiopianreview.com/business/2043 Tue, 15 Sep 2009 01:41:31 +0000 http://www.ethiopianreview.com/business/?p=2043 VentureBeat ]]> 2043 2009-09-14 18:41:31 2009-09-15 01:41:31 open open startups-can-trade-favors-at-theswop-com publish 0 0 post _edit_lock 1252978892 _edit_last 3 Intuit buying Mint.com for $170M http://www.ethiopianreview.com/business/2046 Tue, 15 Sep 2009 01:57:11 +0000 http://www.ethiopianreview.com/business/?p=2046 San Jose Business Journal]]> 2046 2009-09-14 18:57:11 2009-09-15 01:57:11 open open intuit-buying-mint-com-for-170m publish 0 0 post _edit_lock 1252979851 _edit_last 3 SEC goes after SoBe condo-hotel developer http://www.ethiopianreview.com/business/2051 Tue, 15 Sep 2009 01:58:40 +0000 http://www.ethiopianreview.com/business/?p=2051 South Florida Business Journal]]> 2051 2009-09-14 18:58:40 2009-09-15 01:58:40 open open sec-goes-after-sobe-condo-hotel-developer publish 0 0 post _edit_lock 1252979921 _edit_last 3 Judge rejects BofA settlement with SEC http://www.ethiopianreview.com/business/2054 Tue, 15 Sep 2009 01:59:41 +0000 http://www.ethiopianreview.com/business/?p=2054 Charlotte Business Journal]]> 2054 2009-09-14 18:59:41 2009-09-15 01:59:41 open open judge-rejects-bofa-settlement-with-sec publish 0 0 post _edit_lock 1252979982 _edit_last 3 ControlScan lands $1.5 million http://www.ethiopianreview.com/business/2068 Tue, 15 Sep 2009 02:18:28 +0000 http://www.ethiopianreview.com/business/?p=2068 Atlanta Business Chronicle]]> 2068 2009-09-14 19:18:28 2009-09-15 02:18:28 open open controlscan-lands-1-5-million publish 0 0 post _edit_last 3 _edit_lock 1252981110 Tumri moving HQ to San Mateo http://www.ethiopianreview.com/business/2071 Tue, 15 Sep 2009 02:19:57 +0000 http://www.ethiopianreview.com/business/?p=2071 San Francisco Business Times ]]> 2071 2009-09-14 19:19:57 2009-09-15 02:19:57 open open tumri-moving-hq-to-san-mateo publish 0 0 post _edit_lock 1252981198 _edit_last 3 Judge overturns BofA settlement on Merrill bonuses http://www.ethiopianreview.com/business/2074 Tue, 15 Sep 2009 02:21:11 +0000 http://www.ethiopianreview.com/business/?p=2074 Charlotte Business Journal ]]> 2074 2009-09-14 19:21:11 2009-09-15 02:21:11 open open judge-overturns-bofa-settlement-on-merrill-bonuses publish 0 0 post _edit_lock 1252981271 _edit_last 3 Qwest sells $550M in senior notes http://www.ethiopianreview.com/business/2077 Tue, 15 Sep 2009 02:23:15 +0000 http://www.ethiopianreview.com/business/?p=2077 Denver Business Journal]]> 2077 2009-09-14 19:23:15 2009-09-15 02:23:15 open open qwest-sells-550m-in-senior-notes publish 0 0 post _edit_lock 1252981397 _edit_last 3 Markets push into positive territory by Monday close http://www.ethiopianreview.com/business/2080 Tue, 15 Sep 2009 02:24:24 +0000 http://www.ethiopianreview.com/business/?p=2080 Pittsburgh Business Times]]> 2080 2009-09-14 19:24:24 2009-09-15 02:24:24 open open markets-push-into-positive-territory-by-monday-close publish 0 0 post _edit_lock 1252981464 _edit_last 3 Morgan Keegan ordered to pay former Lakers star $1.4M http://www.ethiopianreview.com/business/2083 Tue, 15 Sep 2009 02:25:25 +0000 http://www.ethiopianreview.com/business/?p=2083 Birmingham Business Journal]]> 2083 2009-09-14 19:25:25 2009-09-15 02:25:25 open open morgan-keegan-ordered-to-pay-former-lakers-star-1-4m publish 0 0 post _edit_lock 1252981571 _edit_last 3 Yadkin Valley Financial names new CFO http://www.ethiopianreview.com/business/2087 Tue, 15 Sep 2009 02:27:37 +0000 http://www.ethiopianreview.com/business/?p=2087 Charlotte Business Journal]]> 2087 2009-09-14 19:27:37 2009-09-15 02:27:37 open open yadkin-valley-financial-names-new-cfo publish 0 0 post _edit_lock 1252981657 _edit_last 3 TD Bank opens Boston beachhead http://www.ethiopianreview.com/business/2090 Tue, 15 Sep 2009 02:28:34 +0000 http://www.ethiopianreview.com/business/?p=2090 Boston Business Journal]]> 2090 2009-09-14 19:28:34 2009-09-15 02:28:34 open open td-bank-opens-boston-beachhead publish 0 0 post _edit_lock 1252981714 _edit_last 3 Wells Fargo investigates Malibu house-party reports, fires employee http://www.ethiopianreview.com/business/2093 Tue, 15 Sep 2009 02:29:40 +0000 http://www.ethiopianreview.com/business/?p=2093 Minneapolis / St. Paul Business Journal]]> 2093 2009-09-14 19:29:40 2009-09-15 02:29:40 open open wells-fargo-investigates-malibu-house-party-reports-fires-employee publish 0 0 post _edit_lock 1252981794 _edit_last 3 SEC charges former Isilon CFO http://www.ethiopianreview.com/business/2097 Tue, 15 Sep 2009 02:32:11 +0000 http://www.ethiopianreview.com/business/?p=2097 Puget Sound Business Journal (Seattle)]]> 2097 2009-09-14 19:32:11 2009-09-15 02:32:11 open open sec-charges-former-isilon-cfo publish 0 0 post _edit_lock 1252981931 _edit_last 3 DiamondRock completes capital initiatives http://www.ethiopianreview.com/business/2100 Tue, 15 Sep 2009 02:34:51 +0000 http://www.ethiopianreview.com/business/?p=2100 Washington Business Journal]]> 2100 2009-09-14 19:34:51 2009-09-15 02:34:51 open open diamondrock-completes-capital-initiatives publish 0 0 post _edit_lock 1252982093 _edit_last 3 MDC Holdings lowers credit-line commitment http://www.ethiopianreview.com/business/2103 Tue, 15 Sep 2009 02:35:41 +0000 http://www.ethiopianreview.com/business/?p=2103 Denver Business Journal]]> 2103 2009-09-14 19:35:41 2009-09-15 02:35:41 open open mdc-holdings-lowers-credit-line-commitment publish 0 0 post _edit_lock 1252982142 _edit_last 3 New norms to ease vehicle repossession http://www.ethiopianreview.com/business/2106 Tue, 15 Sep 2009 02:37:06 +0000 http://www.ethiopianreview.com/business/?p=2106 Business Standard]]> 2106 2009-09-14 19:37:06 2009-09-15 02:37:06 open open new-norms-to-ease-vehicle-repossession publish 0 0 post _edit_lock 1252982227 _edit_last 3 RBI unlikely to raise key rates, says Bery http://www.ethiopianreview.com/business/2109 Tue, 15 Sep 2009 02:38:11 +0000 http://www.ethiopianreview.com/business/?p=2109 BS Reporter]]> 2109 2009-09-14 19:38:11 2009-09-15 02:38:11 open open rbi-unlikely-to-raise-key-rates-says-bery publish 0 0 post _edit_lock 1252982292 _edit_last 3 Outward remittances jump 158% in June http://www.ethiopianreview.com/business/2112 Tue, 15 Sep 2009 02:39:06 +0000 http://www.ethiopianreview.com/business/?p=2112 BS Reporter]]> 2112 2009-09-14 19:39:06 2009-09-15 02:39:06 open open outward-remittances-jump-158-in-june publish 0 0 post _edit_lock 1252982347 _edit_last 3 How the cookie crumbled http://www.ethiopianreview.com/business/2115 Tue, 15 Sep 2009 02:40:18 +0000 http://www.ethiopianreview.com/business/?p=2115 BS Reporter ]]> 2115 2009-09-14 19:40:18 2009-09-15 02:40:18 open open how-the-cookie-crumbled publish 0 0 post _edit_lock 1252982419 _edit_last 3 Green shoots evident, but worries remain http://www.ethiopianreview.com/business/2118 Tue, 15 Sep 2009 02:41:16 +0000 http://www.ethiopianreview.com/business/?p=2118 BS Reporter]]> 2118 2009-09-14 19:41:16 2009-09-15 02:41:16 open open green-shoots-evident-but-worries-remain publish 0 0 post _edit_lock 1252982477 _edit_last 3 Power traders: Tariff cap a dampener http://www.ethiopianreview.com/business/2121 Tue, 15 Sep 2009 02:42:34 +0000 http://www.ethiopianreview.com/business/?p=2121 Business Standard ]]> 2121 2009-09-14 19:42:34 2009-09-15 02:42:34 open open power-traders-tariff-cap-a-dampener publish 0 0 post _edit_lock 1252982556 _edit_last 3 Sobha to sell 2 land parcels in city http://www.ethiopianreview.com/business/2124 Tue, 15 Sep 2009 02:44:44 +0000 http://www.ethiopianreview.com/business/?p=2124 Business Standard ]]> 2124 2009-09-14 19:44:44 2009-09-15 02:44:44 open open sobha-to-sell-2-land-parcels-in-city publish 0 0 post _edit_lock 1252982687 _edit_last 3 High labour costs hit plantation sector http://www.ethiopianreview.com/business/2128 Tue, 15 Sep 2009 02:51:03 +0000 http://www.ethiopianreview.com/business/?p=2128 BS Reporter]]> 2128 2009-09-14 19:51:03 2009-09-15 02:51:03 open open high-labour-costs-hit-plantation-sector publish 0 0 post _edit_lock 1252983065 _edit_last 3 RNRL seeks to join NTPC-RIL gas row http://www.ethiopianreview.com/business/2131 Tue, 15 Sep 2009 02:52:14 +0000 http://www.ethiopianreview.com/business/?p=2131 BS Reporter]]> 2131 2009-09-14 19:52:14 2009-09-15 02:52:14 open open rnrl-seeks-to-join-ntpc-ril-gas-row publish 0 0 post _edit_lock 1252983135 _edit_last 3 Fertiliser ministry wants 43 mmscmd http://www.ethiopianreview.com/business/2134 Tue, 15 Sep 2009 02:55:19 +0000 http://www.ethiopianreview.com/business/?p=2134 BS Reporter]]> 2134 2009-09-14 19:55:19 2009-09-15 02:55:19 open open fertiliser-ministry-wants-43-mmscmd publish 0 0 post _edit_lock 1252983321 _edit_last 3 IOC implementing Rs 60,000-cr projects http://www.ethiopianreview.com/business/2138 Tue, 15 Sep 2009 02:56:49 +0000 http://www.ethiopianreview.com/business/?p=2138 BS Reporter ]]> 2138 2009-09-14 19:56:49 2009-09-15 02:56:49 open open ioc-implementing-rs-60000-cr-projects publish 0 0 post _edit_lock 1252983410 _edit_last 3 Lanka wants to rope in RIL for oil exploration http://www.ethiopianreview.com/business/2141 Tue, 15 Sep 2009 02:57:52 +0000 http://www.ethiopianreview.com/business/?p=2141 Press Trust of India]]> 2141 2009-09-14 19:57:52 2009-09-15 02:57:52 open open lanka-wants-to-rope-in-ril-for-oil-exploration publish 0 0 post _edit_lock 1252983472 _edit_last 3 Fortis plans Rs 1,000-cr rights issue by October http://www.ethiopianreview.com/business/2144 Tue, 15 Sep 2009 02:58:46 +0000 http://www.ethiopianreview.com/business/?p=2144 Press Trust of India ]]> 2144 2009-09-14 19:58:46 2009-09-15 02:58:46 open open fortis-plans-rs-1000-cr-rights-issue-by-october publish 0 0 post _edit_lock 1252983527 _edit_last 3 Sebi puts out proposals to prevent Satyam repeats http://www.ethiopianreview.com/business/2147 Tue, 15 Sep 2009 02:59:58 +0000 http://www.ethiopianreview.com/business/?p=2147 BS Reporter]]> 2147 2009-09-14 19:59:58 2009-09-15 02:59:58 open open sebi-puts-out-proposals-to-prevent-satyam-repeats publish 0 0 post _edit_lock 1252983599 _edit_last 3 Nippo to soon sell rechargeable batteries http://www.ethiopianreview.com/business/2150 Tue, 15 Sep 2009 03:01:02 +0000 http://www.ethiopianreview.com/business/?p=2150 BS Reporter]]> 2150 2009-09-14 20:01:02 2009-09-15 03:01:02 open open nippo-to-soon-sell-rechargeable-batteries publish 0 0 post _edit_lock 1252983663 _edit_last 3 Corus to restart another UK unit on rise in demand http://www.ethiopianreview.com/business/2153 Tue, 15 Sep 2009 03:03:02 +0000 http://www.ethiopianreview.com/business/?p=2153 Business Standard]]> 2153 2009-09-14 20:03:02 2009-09-15 03:03:02 open open corus-to-restart-another-uk-unit-on-rise-in-demand publish 0 0 post _edit_lock 1252983784 _edit_last 3 Non-power coal consumers hit out at CIL http://www.ethiopianreview.com/business/2156 Tue, 15 Sep 2009 03:04:23 +0000 http://www.ethiopianreview.com/business/?p=2156 Business Standard]]> 2156 2009-09-14 20:04:23 2009-09-15 03:04:23 open open non-power-coal-consumers-hit-out-at-cil publish 0 0 post _edit_lock 1252983864 _edit_last 3 Future starts third-party logistics with Hitachi, Nestle http://www.ethiopianreview.com/business/2159 Tue, 15 Sep 2009 03:06:10 +0000 http://www.ethiopianreview.com/business/?p=2159 Business Standard]]> 2159 2009-09-14 20:06:10 2009-09-15 03:06:10 open open future-starts-third-party-logistics-with-hitachi-nestle publish 0 0 post _edit_lock 1252983971 _edit_last 3 Orissa inks MoU with NSEL for electronic trading of agri-products http://www.ethiopianreview.com/business/2162 Tue, 15 Sep 2009 03:08:51 +0000 http://www.ethiopianreview.com/business/?p=2162 BS Reporter ]]> 2162 2009-09-14 20:08:51 2009-09-15 03:08:51 open open orissa-inks-mou-with-nsel-for-electronic-trading-of-agri-products publish 0 0 post _edit_lock 1252984133 _edit_last 3 We want NMDC to be a multi-faceted organisation http://www.ethiopianreview.com/business/2165 Tue, 15 Sep 2009 03:10:48 +0000 http://www.ethiopianreview.com/business/?p=2165 Business Standard]]> 2165 2009-09-14 20:10:48 2009-09-15 03:10:48 open open we-want-nmdc-to-be-a-multi-faceted-organisation publish 0 0 post _edit_lock 1252984249 _edit_last 3 Suryansh eyes hotel in Puri http://www.ethiopianreview.com/business/2168 Tue, 15 Sep 2009 03:20:59 +0000 http://www.ethiopianreview.com/business/?p=2168 BS Reporter]]> 2168 2009-09-14 20:20:59 2009-09-15 03:20:59 open open suryansh-eyes-hotel-in-puri publish 0 0 post _edit_lock 1252984861 _edit_last 3 Tata Motors sells half its holding in Tata Steel to Tata Sons http://www.ethiopianreview.com/business/2171 Tue, 15 Sep 2009 03:22:26 +0000 http://www.ethiopianreview.com/business/?p=2171 BS Reporter]]> 2171 2009-09-14 20:22:26 2009-09-15 03:22:26 open open tata-motors-sells-half-its-holding-in-tata-steel-to-tata-sons publish 0 0 post _edit_lock 1252984947 _edit_last 3 Kalinga Nagar local representatives back Tata Steel project http://www.ethiopianreview.com/business/2174 Tue, 15 Sep 2009 03:25:21 +0000 http://www.ethiopianreview.com/business/?p=2174 BS Reporter]]> 2174 2009-09-14 20:25:21 2009-09-15 03:25:21 open open kalinga-nagar-local-representatives-back-tata-steel-project publish 0 0 post _edit_lock 1252985122 _edit_last 3 China probes 'unfair trade' in US chicken and auto products http://www.ethiopianreview.com/business/2177 Tue, 15 Sep 2009 03:26:17 +0000 http://www.ethiopianreview.com/business/?p=2177 Bloomberg]]> 2177 2009-09-14 20:26:17 2009-09-15 03:26:17 open open china-probes-unfair-trade-in-us-chicken-and-auto-products publish 0 0 post _edit_lock 1252985177 _edit_last 3 UK keen on Bengal IT-SMEs despite negative political perception http://www.ethiopianreview.com/business/2180 Tue, 15 Sep 2009 03:27:20 +0000 http://www.ethiopianreview.com/business/?p=2180 BS Reporter]]> 2180 2009-09-14 20:27:20 2009-09-15 03:27:20 open open uk-keen-on-bengal-it-smes-despite-negative-political-perception publish 0 0 post _edit_lock 1252985242 _edit_last 3 Congress retains Tekkali seat in bypolls http://www.ethiopianreview.com/business/2183 Tue, 15 Sep 2009 03:28:37 +0000 http://www.ethiopianreview.com/business/?p=2183 BS Reporter]]> 2183 2009-09-14 20:28:37 2009-09-15 03:28:37 open open congress-retains-tekkali-seat-in-bypolls publish 0 0 post _edit_lock 1252985318 _edit_last 3 Jindal Power plans Rs 4,000-crore IPO http://www.ethiopianreview.com/business/2186 Tue, 15 Sep 2009 03:29:42 +0000 http://www.ethiopianreview.com/business/?p=2186 Business Standard]]> 2186 2009-09-14 20:29:42 2009-09-15 03:29:42 open open jindal-power-plans-rs-4000-crore-ipo publish 0 0 post _edit_lock 1252985382 _edit_last 3 'Flexible' tender norms lead to delays: Bhel http://www.ethiopianreview.com/business/2189 Tue, 15 Sep 2009 03:30:47 +0000 http://www.ethiopianreview.com/business/?p=2189 Business Standard ]]> 2189 2009-09-14 20:30:47 2009-09-15 03:30:47 open open flexible-tender-norms-lead-to-delays-bhel publish 0 0 post _edit_lock 1252985448 _edit_last 3 BHEL's Tiruchi unit hit by strike http://www.ethiopianreview.com/business/2192 Tue, 15 Sep 2009 03:31:48 +0000 http://www.ethiopianreview.com/business/?p=2192 Business Standard]]> 2192 2009-09-14 20:31:48 2009-09-15 03:31:48 open open bhels-tiruchi-unit-hit-by-strike publish 0 0 post _edit_lock 1252985509 _edit_last 3 Trai asks DoT to refer uniform licence fee to regulator http://www.ethiopianreview.com/business/2195 Tue, 15 Sep 2009 03:32:50 +0000 http://www.ethiopianreview.com/business/?p=2195 Press Trust of India]]> 2195 2009-09-14 20:32:50 2009-09-15 03:32:50 open open trai-asks-dot-to-refer-uniform-licence-fee-to-regulator publish 0 0 post _edit_lock 1252985571 _edit_last 3 DoT worried about fake IMEI numbers http://www.ethiopianreview.com/business/2198 Tue, 15 Sep 2009 03:33:46 +0000 http://www.ethiopianreview.com/business/?p=2198 Press Trust of India ]]> 2198 2009-09-14 20:33:46 2009-09-15 03:33:46 open open dot-worried-about-fake-imei-numbers publish 0 0 post _edit_lock 1252985626 _edit_last 3 Nasscom to collect 30,000 computers for its aid programme http://www.ethiopianreview.com/business/2201 Tue, 15 Sep 2009 03:34:57 +0000 http://www.ethiopianreview.com/business/?p=2201 Business Standard]]> 2201 2009-09-14 20:34:57 2009-09-15 03:34:57 open open nasscom-to-collect-30000-computers-for-its-aid-programme publish 0 0 post _edit_lock 1252985699 _edit_last 3 Karnataka seeks to encourage agriculture-based industry http://www.ethiopianreview.com/business/2207 Tue, 15 Sep 2009 03:36:43 +0000 http://www.ethiopianreview.com/business/?p=2207 Press Trust of India]]> 2207 2009-09-14 20:36:43 2009-09-15 03:36:43 open open karnataka-seeks-to-encourage-agriculture-based-industry publish 0 0 post _edit_lock 1252985804 _edit_last 3 State leads in Centre's efforts to create jobs http://www.ethiopianreview.com/business/2210 Tue, 15 Sep 2009 03:38:08 +0000 http://www.ethiopianreview.com/business/?p=2210 Business Standard]]> 2210 2009-09-14 20:38:08 2009-09-15 03:38:08 open open state-leads-in-centres-efforts-to-create-jobs publish 0 0 post _edit_lock 1252985890 _edit_last 3 Govt puts 4-week cap on bulk sugar http://www.ethiopianreview.com/business/2213 Tue, 15 Sep 2009 03:39:06 +0000 http://www.ethiopianreview.com/business/?p=2213 Business Standard]]> 2213 2009-09-14 20:39:06 2009-09-15 03:39:06 open open govt-puts-4-week-cap-on-bulk-sugar publish 0 0 post _edit_lock 1252985946 _edit_last 3 Foreign Education Bill may get Cabinet nod this week http://www.ethiopianreview.com/business/2216 Tue, 15 Sep 2009 03:40:00 +0000 http://www.ethiopianreview.com/business/?p=2216 Business Standard]]> 2216 2009-09-14 20:40:00 2009-09-15 03:40:00 open open foreign-education-bill-may-get-cabinet-nod-this-week publish 0 0 post _edit_lock 1252986001 _edit_last 3 State FMs to discuss GST roadmap on Sept 16 http://www.ethiopianreview.com/business/2219 Tue, 15 Sep 2009 03:40:46 +0000 http://www.ethiopianreview.com/business/?p=2219 BS Reporter]]> 2219 2009-09-14 20:40:46 2009-09-15 03:40:46 open open state-fms-to-discuss-gst-roadmap-on-sept-16 publish 0 0 post _edit_lock 1252986047 _edit_last 3 FDA Sends Warning Letter to Makers of Yaz – Yasmin http://www.ethiopianreview.com/business/2286 Thu, 17 Sep 2009 17:21:47 +0000 http://zikkir.com/business/?p=3905 As if the makers of Yasmin / Yaz didn’t have enough to worry about with pending lawsuits related to major side-effects, now they’ve been served a warning letter from the FDA for quality control problems at a plant in Germany that manufactures one of the ingredients in the drug. FDA inspectors discovered the problems during an inspection in March, 2009, and informed Bayer. Bayer claims that the quality of the drug was not affected.

Unacceptable Testing Method
According to the FDA warning letter, Bayer used a testing method that averaged the test results rather than reporting the test results for individual batches. The average was within specified parameters, but individual batches were out-of-specification (OOS), and according to the FDA letter should not have been released. At least eight batches that were tested with this method were shipped to the U.S.

After the March inspection, Bayer reviewed the batches it had shipped to the U.S. between 2007 and 2009. They responded to the FDA in April, 2009, claiming that there was no problem with the quality and an explanation of why it believes this. This recent letter from the FDA states that Bayer’s “response does not adequately address some of the deficiencies.”

Bayer is now required to give the FDA a list of all the batches shipped to the U.S. that may have been tested with the unacceptable method. The FDA may also delay imports from the plant.

Yasmin / Yaz Plagued with Problems
This is just the latest problem Bayer has faced with Yaz / Yasmin birth control medications. Life threatening side effects have already prompted multiple lawsuits against the drug maker. Yasmin is a birth control pill that uses a combination of the hormones drospirenone and ethinyl estradiol to prevent pregnancy. Drospirenone can cause elevated potassium levels leading to heart problems and other health problems.

Yaz/Yasmin side effects may include deep vein thrombosis (DVT), pulmonary embolism (PE), heart attack, stroke, cardiac arhythmias, gallbladder disease, and sudden death. The generic version of Yasmin is called Ocella, and carries the same risks.

One of the biggest reported risks of Yaz/Yasmin is the development of blood clots, leading to stroke or heart attack in women who were healthy before taking the drug and were not at risk for either life threatening event. DVT is blood clot in the legs. PE is blood clot in the lungs. In young, healthy women these blood clots are often overlooked or misdiagnosed, leaving them in grave danger.

Even when the clots are discovered and treated the effects can be long-term and can mean a lifetime of taking medications to prevent more clots from forming.

- US Recall News

]]> 2286 2009-09-17 10:21:47 2009-09-17 17:21:47 open open fda-sends-warning-letter-to-makers-of-yaz-%e2%80%93-yasmin publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3905#comments wfw:commentRSS http://zikkir.com/business/3905/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3905 syndication_item_hash f3584ec7e8d5ef002eac75df8e46b252 Heart Palpitations, Slow Heart Rate, Low Blood Pressure: Symptoms or Side Effects? http://www.ethiopianreview.com/business/2285 Thu, 17 Sep 2009 17:22:30 +0000 http://zikkir.com/business/?p=3908 Heart palpitations, slow heart rate, and low blood pressure are often symptoms of diseases or conditions like hormonal changes or Sleep apnea, but could also be side effects associated with certain medications. Below is a list of diseases and conditions associated with symptoms like heart palpitations, slow heart rate, and low blood pressure, as well as a list of medications related to similar side effects.

We are not medical professionals, and these may not be comprehensive lists. Please contact your doctor if you are experiencing any of the following symptoms or side effects, or similar health issues.
Heart Palpitations, Slow Heart Rate, and Low Blood Pressure Are Symptoms Of

Low Thyroid: Hypothyroidism, or low thyroid, slows down your entire metabolism. The symptoms can be subtle. When the metabolism slows down it can cause a slow heart rate, heart palpitations and low blood pressure, as well as weight gain, fatigue, and a tendency to become cold easily.

Pregnancy: During pregnancy the circulatory system expands rapidly causing low blood pressure. The significant blood volume changes during pregnancy can also cause heart palpitations. Blood pressure and heart rate should return to normal when pregnancy is over.

Damaged Heart Tissue: Damaged heart tissue can cause heart palpitations, slow heart rate, and low blood pressure because the heart is no longer able to function properly and efficiently. The most common cause of heart muscle damage is heart attack, but it can also be caused by carbon monoxide poisoning, certain medications such as cancer fighting drugs, diabetes, and electric shock.

Obstructive Sleep Apnea: Sleep apnea is a serious and potentially fatal condition in which you stop breathing in your sleep. When this happens you wake up just enough to adjust your position and start breathing again, but usually not enough to notice, and then fall back asleep. The cycle can happen 100 times an hour.
Heart Palpitations, Slow Heart Rate, and Low Blood Pressure Are Side Effects Associated With:

Digoxin: Digitek (digoxin) is used to treat congestive heart failure and atrial fibrillation. Digoxin is derived from the highly poisonous digitalis plant, commonly known as foxglove. Digitalis toxicity can cause heart palpitations, slow heart rate, low blood pressure, cardiac instability, nausea, vomiting, and death.

Atenolol: Atenolol, sold under the brand name Tenormin, is used to treat chest pains and high blood pressure, and is sometimes prescribed after a heart attack or to prevent heart attack. It belongs to a class of drugs called beta-blockers. Atenolol can cause slow heart rate, heart palpitations, faintness, cold hands and feet, and other side effects.

Wellbutrin: Wellbutrin (bupropion) is used to treat depression and seasonal affective disorder (SAD). Under the brand name Zyban, bupropion is used as a smoking cessation aid. Bupropion can have serious side effects including low blood pressure, irregular heart beat, and may also cause nausea, vomiting, excessive sweating, dizziness, and joint pain.

- US Recall News

]]> 2285 2009-09-17 10:22:30 2009-09-17 17:22:30 open open heart-palpitations-slow-heart-rate-low-blood-pressure-symptoms-or-side-effects publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3908#comments wfw:commentRSS http://zikkir.com/business/3908/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3908 syndication_item_hash b4816d9f048ac0841772cc86622261c4 Abdominal Pain, Vomiting, Constipation: Symptoms or Side Effects? http://www.ethiopianreview.com/business/2284 Thu, 17 Sep 2009 17:23:15 +0000 http://zikkir.com/business/?p=3911 Abdominal pain, vomiting, and constipation are often symptoms of conditions or illnesses such as food poisoning, but could also be side effects associated with certain medications.

Below is a list of illnesses and conditions associated with symptoms like abdominal pain, vomiting, and constipation, as well as a list of medications related to similar side effects.

We are not medical professionals, and these may not be comprehensive lists. Please contact your doctor if you are experiencing any of the following symptoms or side effects, or similar health issues.
Abdominal Pain, Vomiting, and Constipation Are Symptoms Of

Lead Poisoning: Lead poisoning usually results from a build up of lead in the body over time. It can have serious consequences for both children and adults. Lead poisoning is often mistaken for other problems or illnesses and may go undetected until the damage is severe. Symptoms include abdominal pain, vomiting, constipation, personality changes, fatigue, and more. Lead paint is found in older homes and in children’s toys imported from China.

Appendicitis: Appendicitis is common, but potentially life-threatening if left untreated. It usually occurs in older children and young adults. Abdominal pain may begin near the belly button, but moves to the lower, right side of the abdomen. Other symptoms include vomiting, constipation, diarrhea, and abdominal swelling.

Ulcer: A peptic ulcer is a sore inside your digestive system, on the upper small intestine, stomach, or esophagus. The symptoms can be intermittent and may or may not include vomiting blood or passing blood in the stool. Abdominal pain is the most common symptom. Vomiting may also occur.

Food Poisoning: Food poisoning comes in many forms. It can be the result of food that has spoiled, food that was undercooked, and foods that are poisonous in and of themselves. Food poisoning can also be caused by foods that are contaminated with a chemical, bacteria, or virus (foods that are contaminated with a chemical, bacteria, or virus http://www.usrecallnews.com/section/recalled-food).
Abdominal Pain, Vomiting, and Constipation Are Side Effects Associated With

Accutane: Accutane (isotretinoin) is used to treat severe nodular acne that does not respond to other treatments. Isotretinoin is no longer available under the brand name Accutane, but is still sold generically. It has very serious side effects including birth defects, miscarriage, depression, and suicide. It can also cause severe abdominal pain, vomiting, constipation, and may lead to irritable bowel syndrome (IBS).

Ibuprofen: Ibuprofen is a nonsteroidal anti-inflammatory drug (NSAID). It is sold over the counter as Advil, Motrin, and under other brand names, and in prescription form. It is used to treat menstrual cramps, mild to moderate pain, inflammation, and fever. It is a popular medication, but many people cannot tolerate it experiencing abdominal pain, nausea, constipation, and other digestive track side effects.

Erythromycin: Erythromycin is a commonly used antibiotic. It is used to treat bacterial infections including respiratory infections, strep throat, diphtheria, syphilis, and more. The most common side effects of erythromycin are gastrointestinal and include abdominal pain, vomiting, and diarrhea.

- US Recall News

]]> 2284 2009-09-17 10:23:15 2009-09-17 17:23:15 open open abdominal-pain-vomiting-constipation-symptoms-or-side-effects publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3911#comments wfw:commentRSS http://zikkir.com/business/3911/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3911 syndication_item_hash d1b16e86f8a05327c9d11590a8954c5d Houston named hot spot for tech jobs http://www.ethiopianreview.com/business/2283 Thu, 17 Sep 2009 17:24:24 +0000 http://zikkir.com/business/?p=3914 Houston has made the short list of best places to find technology jobs by U.S. News and World Report.

The report found that “compared with the rest of the country, Houston – like Texas overall – is doing pretty well. D’Ann Petersen, a business economist at the Federal Reserve Bank of Dallas, says Houston is full of service firms, many of them IT, that serve the energy industry, which has tended to insulate regional economies in this recession despite price volatility. Houston’s high-tech industry emerged at the end of World War II, when companies moved in to build geophysical instrumentation and automation systems, according to the Dallas Federal Reserve. In the last recession, when the dot-com burst dragged the economy down, Texas ‘felt the impact longer than many areas, partly because of its large number of high-tech jobs,’ the Fed reports. Today, Houston ranks high for total tech job postings and has above-average ratios for tech job postings to employment in multiple occupations.”

Also making the 10 best cities was Atlanta, Boston, Huntsville, Ala., New York, Phoenix, San Diego, San Francisco, Seattle and Washington D.C.

To find some of the best places for tech jobs, U.S. News started out with a database of 2,000 cities, and using data provided by New York-based Onboard Informatics, looked at metropolitan areas large enough to provide a range of opportunities in the field, then sorted for factors such as high rates of graduate degrees.

The publication next looked at the variety of job openings within the industry on a broad job search engine and on a tech-specific job site. Data was then compared with local supply-demand ratios from Canada-based Wanted Analytics. Then salary data provided by Glassdoor.com was factored in as well as the the area’s cost of living.

Technology employment overall across the country has suffered along with the rest of the economy, with high-tech manufacturing jobs slipping the most, according to the report. However, information technology service jobs — those in engineering and in software services — have had better luck.

Helping to supplement job losses in the sector, the federal government is expecting to make 11,500 new hires in information technology jobs over the next three years, according to a report by the Partnership for Public Service.

- Houston Business Journal

]]> 2283 2009-09-17 10:24:24 2009-09-17 17:24:24 open open houston-named-hot-spot-for-tech-jobs publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3914#comments wfw:commentRSS http://zikkir.com/business/3914/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3914 syndication_item_hash 1f5bc8e4809b7c771d86c2c4bc87665a 56-story Austonian tops out http://www.ethiopianreview.com/business/2282 Thu, 17 Sep 2009 17:25:24 +0000 http://zikkir.com/business/?p=3917 Dominating the Austin skyline at 56 stories, the Austonian officially “tops out” on Thursday.

Hundreds of workers with construction company Balfour Beatty who’ve been working on the 683-foot high-rise will celebrate with a party Thursday afternoon. A 32-foot structural steel beam signed by the construction team will be hoisted by crane across Congress Avenue to the top of the building at 4:30 p.m. The beam is one of six that will support the building’s ornamental glass crown.

Construction on the $250 million, 188-unit luxury condo tower began two years ago. Completion is scheduled for spring 2010.

Benchmark Development, the Austin-based subsidiary of Spain-based Grupo Villar Mir, is the developer of The Austonian. Ziegler Cooper Architects of Houston designed the project.

- Austin Business Journal

]]> 2282 2009-09-17 10:25:24 2009-09-17 17:25:24 open open 56-story-austonian-tops-out publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3917#comments wfw:commentRSS http://zikkir.com/business/3917/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3917 syndication_item_hash 2cd8aa5a507fe003d3fd9d551b8d12a1 BRA approves new housing developments http://www.ethiopianreview.com/business/2281 Thu, 17 Sep 2009 17:26:30 +0000 http://zikkir.com/business/?p=3920 The Boston Redevelopment Authority approved two projects at its Sept. 15 board meeting that are expected to bring 112 new housing units to the city’s South Boston and West Roxbury neighborhoods.

A project called The Distillery in South Boston will turn a former rum distillery into 65 residential units, including artist live-work units, according to a press release from the city. The Distillery is located at 516-524 East Second St. in South Boston and currently includes three existing buildings containing 65 units. The developer, Second Street Associates LLC, will build two new wings, totaling 179,384 square feet, that will hold another 64 units as well as a gallery, cafe, greenhouse and retail space.

The second project, called Gordon’s Wood in West Roxbury, was previously approved by the BRA and calls for a former nursing home to be redeveloped into 42 condos, including 5 affordable units. The project will now be condensed into two buildings instead of three. The $8 million project, located at 970-1100 VFW Parkway, is being developed by the Mayo Group of Boston. Construction and demolition of the nursing home will begin this winter, according to the city.

- by Michelle Hillman | Boston Business Journal

]]> 2281 2009-09-17 10:26:30 2009-09-17 17:26:30 open open bra-approves-new-housing-developments publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3920#comments wfw:commentRSS http://zikkir.com/business/3920/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3920 syndication_item_hash d76a190aa6dee2117d960d99af611d8d Blake Real Estate inks several new leases http://www.ethiopianreview.com/business/2280 Thu, 17 Sep 2009 17:27:40 +0000 http://zikkir.com/business/?p=3923 Blake Real Estate Inc., which has ten buildings concentrated in D.C.’s central business district, has signed 255,000 square feet of new leases, expansions and renewals since July.

The biggest deal of the group is the World Bank’s extension of its 140,000-square-foot lease at 1800 G St. NW for another five years with a five-year option.

“We have been here a long, long time and our buildings are very conservatively financed. Tenants are comfortable with that,” said Steve Lustgarten, executive vice president of D.C.-based Blake Real Estate.

He says tenants’ space needs are varying, with some needing to grow and others needing to slash square footage as a result of the economy.

“The advantage of having a density [of space] in the area is we can move people around inside buildings and give them flexibility to grow and shrink,” he said.

Stroz Friedberg, a technical consulting and services firm, leased 6,000 square feet at 1150 Connecticut Ave. and will relocate to a larger space on another floor that is being built out.

Architecture firm Ewing Cole downsized its space by leasing 15,317 square feet at 1025 Connecticut Ave. NW, and the National Association of Independent Colleges and Universities renewed its 8,185 square-foot lease in the same building. PR firm Crosby-Volmer was formerly a subtenant at the building and converted into a prime tenant, leasing 7,500 square feet.

Up the street at 1120 Connecticut Ave., Capital Construction Consultants Inc. (CCCI) leased 8,150 square feet and preleased another space in the building about 18 months out that will allow them to grow.

In terms of when tenants are signing their leases, he is seeing larger tenants inking deals further out and smaller tenants “cutting it tighter than we would like, even on renewals,” he said.

New tenants to 1025 Connecticut Ave. include Climate Focus, which leased 2,420 square feet, and Third Way, which leased 1,650 square feet. Inari Salon & Spa is also a new tenant at 1425 K St. NW, which leased 1,650 square feet there.

Blake says it has been able to attract and retain tenants because it is a long-term asset holder with modestly leveraged buildings.

“A lot of buildings have been trading hands every four years in D.C. Tenants are beginning to question whether the landlord can meet all of its obligations,” said Lustgarten. “Will the landlord continue to own the building or will the lender? Tenants are scared of the unknown.”

Blake also leased space in its buildings outside of D.C. over the past two months, including 5710-5714 Columbia Park Road in Cheverly, where Washington Winnelson Co. almost doubled its size by leasing 13,882 square feet.

- by Tierney Plumb | Washington Business Journal

]]> 2280 2009-09-17 10:27:40 2009-09-17 17:27:40 open open blake-real-estate-inks-several-new-leases publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3923#comments wfw:commentRSS http://zikkir.com/business/3923/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3923 syndication_item_hash 23b6ff71d5f0f61af7484222e0fc8859 Local minority-owned firm Formation Methods to lead dome project http://www.ethiopianreview.com/business/2279 Thu, 17 Sep 2009 17:29:58 +0000 http://zikkir.com/business/?p=3926 Birmingham’s Formation Methods has been chosen to serve a key role in the building of the new domed stadium at the Birmingham-Jefferson Convention Complex.

BJCC’s board Wednesday approved the local construction management firm as project liaison and project coordinator during the design and preconstruction phase of the proposed facility, said a news release.

This is the first phase of the $530 million project and is expected to last 16 months.

Ground was broken last month on the multipurpose facility, adjacent to the BJCC. Plans call for construction to begin in 2011 on the more than 57,000-seat arena. Construction should last three years, with a target opening date in 2015.

Formation Methods is minority-owned and provides master planning, progam management and construction management services.

- by Lauren B. Cooper | Birmingham Business Journal

]]> 2279 2009-09-17 10:29:58 2009-09-17 17:29:58 open open local-minority-owned-firm-formation-methods-to-lead-dome-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3926#comments wfw:commentRSS http://zikkir.com/business/3926/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3926 syndication_item_hash 164c0ec50baab46eda2f7324d063de27 Lake|Flato, Kell Muñoz named part of design team for U.S. Courthouse http://www.ethiopianreview.com/business/2278 Thu, 17 Sep 2009 17:30:47 +0000 http://zikkir.com/business/?p=3929 The General Services Administration has selected a joint venture team made up of Lake|Flato Architects, Kell Muñoz and Ellerbe Becket to provide architectural services for the development of a new U.S. Courthouse in downtown San Antonio.

Lake|Flato will serve as the project designer. Kell Muñoz will serve as the architect of record and Ellerbe Becket will provide project management and courts design services. The new federal courthouse will cost between $125 million and $150 million to develop and it will replace the John H. Wood Courthouse in HemisFair Park.

The new courthouse will be located at the site of the existing San Antonio Police Department headquarters at Nueva Street and Santa Rosa Boulevard, one block from City Hall.

The three companies previously collaborated on the design of the AT&T Center, a $180 million multipurpose facility that is home to the San Antonio Spurs.

Employees of the three firms will work out of Lake|Flato’s office in San Antonio. The design team beat out more than 80 bidders to win the contract. In August, the team was one of six firms named to a short list of bidders.

“The entire team is exuberant and honored by our selection,” says David Lake, a partner with Lake|Flato. “We look forward to crafting an enduring landmark for justice for all the citizens to enjoy. We are committed to strengthening our downtown with the federal courthouse being a catalyst for a new civic precinct.”

Lake co-founded Lake|Flato in 1984. In 2004, the American Institute of Architects named Lake|Flato as its national Firm of the Year.

Kell Muñoz has design services for a number of projects in San Antonio, including the Bexar County Justice Center.

Ellerbe Becket is an internationally recognized architecture, engineering and interior design firm. The company has an established track record of designing building projects for the federal government. Minneapolis-based Ellerbe Becket has offices worldwide.

- San Antonio Business Journal

]]> 2278 2009-09-17 10:30:47 2009-09-17 17:30:47 open open lakeflato-kell-munoz-named-part-of-design-team-for-u-s-courthouse publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3929#comments wfw:commentRSS http://zikkir.com/business/3929/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3929 syndication_item_hash 9ec4e92aa02733ae37f0581881419a39 Attorneys general meet on mortgage fraud http://www.ethiopianreview.com/business/2277 Thu, 17 Sep 2009 17:31:41 +0000 http://zikkir.com/business/?p=3932 Arizona Attorney General Terry Goddard is in Washington Thursday with 12 other state attorneys general, U.S. Treasury Secretary Timothy Geithner and U.S. Attorney General Eric Holder to discuss the mortgage fraud problem.

The housing crash in places such as Phoenix and Las Vegas has generated an increase in mortgage fraud, including modification and refinancing firms preying on distressed borrowers as well as unscrupulous borrowers and real estate investors.

Goddard said Arizona has plenty of mortgage fraud cases.

“Arizona is at the epicenter of the nation’s mortgage crisis. Homeowners unable to get clear answers from their lenders are falling victim to fraud artists who charge high fees for empty promises,” Goddard said in a statement. “I am aggressively prosecuting those who take advantage of struggling families, and I appreciate that the administration is listening to the recommendations of state attorneys general to streamline modification programs to provide real relief,” Goddard said.

The meeting also involves top officials from the U.S. Department of Housing and Urban Development and Federal Trade Commission.

- by Mike Sunnucks | Phoenix Business Journal

]]> 2277 2009-09-17 10:31:41 2009-09-17 17:31:41 open open attorneys-general-meet-on-mortgage-fraud publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3932#comments wfw:commentRSS http://zikkir.com/business/3932/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3932 syndication_item_hash 7a830fbddea994b0a4a02a3313cf4f4b El Chorro taking shape for reopening in late ‘09, early ‘10 http://www.ethiopianreview.com/business/2276 Thu, 17 Sep 2009 17:33:39 +0000 http://zikkir.com/business/?p=3935 Sticky buns. Sticky buns. While the new El Chorro Lodge won’t be open in time Thanksgiving feasts, the lodge’s newest owners are making sure Phoenicians will get their sugar fix.

As construction crews continue the months-long renovation of the iconic restaurant and the surrounding property, principal Jacquie Dorrance and operating partners Tim and Kristy Moore are developing plans for a debut late this year or early next.

“It seemed very clear to me that we all wanted to retain the warmth and the intimacy and the quirkiness of El Chorro. It’s very important to me to keep that integrity,” Dorrance said.

In a private deal, Dorrance purchased the historic restaurant earlier this summer from longtime owners Joe and Evie Miller for an undisclosed amount. Dorrance is the wife of Bennett Dorrance, managing director of Phoenix real estate company DMB Associates and a major shareholder in the Campbell Soup Co., which his family founded more than 100 years ago.

While the restaurant closed its doors in June, the trio is laying the groundwork for a new history with the help of Mark Candelaria, an architect and owner of Candelaria Design.

“I wasn’t really out there looking for a restaurant to buy, but when I heard that Joe and Evie were thinking about the future, I just thought that this would be an opportunity to preserve this landmark,” Dorrance said.

So far, work has revealed the original green-stained concrete floor in the classroom of the Judson School for Girls. The 11-acre property was home to the school, founded by John C. Lincoln in 1934, before it became the restaurant in 1937.

“We are going to preserve that floor and take it back to the original color, it’s gorgeous. We are also retaining the original bar that was in the classroom,” Dorrance said.

Candelaria said the goal is to create a better flow and floorplan, but reuse key items, such as beams and other pieces, to retain the architectural and historical flavor of the lodge.

“We will be using stucco, terra cotta pavers and terra cotta roof tiles. This will not be a pretentious atmosphere, but will have a classic, historic, comfortable feel,” Candelaria said.

Plans include a 3,000-square-foot expansion of the outdoor patio to take advantage of the views of Praying Monk and Camelback Mountain, with six outdoor fireplaces and two firepits. The property also will include an event garden for weddings or other gatherings.

A new bar will extend from the patio into the restaurant proper, providing a seamless indoor-outdoor experience. The new restaurant will have a dedicated dance floor, a state-of-the-art sound system and free wi-fi.

“We want it to feel historical and that you are in an old landmark, but we are also reaching out to a younger base,” Dorrance said.

While executive chef Charles Kassels still is developing the new menu, plans are to have a snappy Saturday and Sunday brunch fare, said Kristy Moore.

“We will do mimosas, we’ll make the best Bloody Mary’s in town. We are going to recreate the Tangerine Freeze, offer Date Shakes and have an espresso bar. And if you want a New York strip steak at 10 o’clock on a Saturday morning, we’ll make it for you,” Moore said.

The goal is to keep prices on par with the past and take advantage of the meat smoker and the mesquite broiler, offering lamb, steaks and other meats.

For now, patrons can visit the restaurant’s Web site and vote on which classic menu items to carry over to the new restaurant, or offer suggestions for new items. Soon, the site will offer online ordering for El Chorro’s famed sticky buns to get Phoenicians through the holidays.

It’s those kind of classic “only-in-the-Valley” offerings that are important to the group. With the recent closures of The Quilted Bear and The Pink Pony, two historic East Valley eateries, Dorrance said the project becomes even more important to her and others involved.

“This is why we are taking this so seriously. This is a business venture, but I feel like I am helping to preserve a landmark and giving back. The Pink Pony was the first place Bennett and I ate when we first arrived in Arizona,” Dorrance said.

And while the new venue may be a bit different, El Chorro will most certainly retains its personality.

“This is come as you are,” Moore said.

- by Lynn Ducey | Phoenix Business Journal

]]> 2276 2009-09-17 10:33:39 2009-09-17 17:33:39 open open el-chorro-taking-shape-for-reopening-in-late-%e2%80%9809-early-%e2%80%9810 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3935#comments wfw:commentRSS http://zikkir.com/business/3935/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3935 syndication_item_hash f345a69fd0a9510a431ff3f1086b90eb N.C. agricultural exports rise 51% to $3.1B http://www.ethiopianreview.com/business/2275 Thu, 17 Sep 2009 17:35:15 +0000 http://zikkir.com/business/?p=3938 The Tar Heel State exported $3.1 billion worth of agricultural products in 2008, a 51 percent increase over 2007, reports the North Carolina Department of Agriculture and Consumer Services.

The value of exports, which topped $3 billion for the first time, rose because of an increased value of farm products over the past several years and the emergence of China and other nations as importers of food from the U.S., said Peter Thornton, the department’s assistant director for international marketing.

“As developing countries get richer, the first thing they are going to do is eat better, which offers us more export opportunities,” he said.

North Carolina ranked 13th in the nation for agricultural export value during the fiscal year ending Sept. 30, 2008, according to the U.S. Department of Agriculture’s Economic Research Service.

The state remains the nation’s top tobacco exporter, selling $573.6 million worth of the crop. North Carolina also ranks third in poultry products and fifth in cotton and peanuts sold to other countries, most notably Japan, China, Canada, the Netherlands and Germany.

Animals and meat generated $553.5 million in sales. Cotton and linters produced $275.5 million, and peanuts brought in $23.5 million.

“Agricultural exports are important to North Carolina’s economy,” said state Commissioner of Agriculture Steve Troxler. “They help boost farm prices and income and support more than 24,000 jobs, both on the farm and in industries such as food processing, storage and transportation.”

- by James Gallagher | Triangle Business Journal

]]> 2275 2009-09-17 10:35:15 2009-09-17 17:35:15 open open n-c-agricultural-exports-rise-51-to-3-1b publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3938#comments wfw:commentRSS http://zikkir.com/business/3938/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3938 syndication_item_hash fc96c51ea645e44e41d27d220f98ca87 The difficulty of explaining Dharma http://www.ethiopianreview.com/business/2274 Thu, 17 Sep 2009 17:41:48 +0000 http://zikkir.com/business/?p=3941 If US President Barack Obama had listened to Yudhishthira, the eldest of the Pandavas in Mahabharata, he would not have behaved the way he did when he had to deal with the greed and indiscretion of America’s top investment bankers.

Obama had sought a legal way to claw back the bonuses these executives had showered themselves with even as the institutions they headed were going bust. But this is not what Obama should have asked for, argues Gurcharan Das in this book. “To want to punish someone in this crisis was understandable but it was a dangerous path. What the world needed instead was the calm and principled voice of a Yudhishthira. In Obama’s place he would have appealed for a ‘voluntary’ return of bonuses while explaining to the American people that Wall Street had been bailed out to save Main Street’s pain and honouring bonus contracts was necessary to the rule of law,” he explains.

If you conclude from this explanation that Dharma is to remain calm, follow principles and honour the rule of law, Das will accuse you of over-simplifying Dharma. Dharma, according to the author, is not an easily definable trait. He uses Mahabharata (an epic that claims “what is here is found elsewhere and what is not here is nowhere”), its protagonists and the various turns and twists in their lives to seek the meaning of Dharma. He quotes Bhishma, the man whose vow to remain a celibate and not to stake claim to the throne of Hastinapur could well have been the genesis of all that happened in Mahabharata, to say Dharma is “subtle”. At another point, he says Dharma is so subtle that “it is often difficult to tell right from wrong.”

In essence, the book is Gurcharan Das’ quest for the true meaning of Dharma, as expounded in Mahabharata. What started as an academic holiday became a full-fledged exercise at understanding the significance of the moves and counter-moves made by the different characters in this great epic, originally written in Sanskrit. There are occasions in this exercise where Das starts identifying his own journey in life with that of Yudhishthira.

If Das had limited his attempt at only narrating the great story of Mahabharata, with the help of the knowledge of Sanskrit that he acquired during his academic holiday, the outcome perhaps would have been more satisfying for readers, as the author is a competent story-teller. But confusion reigns when he gets into defining and redefining complex concepts and that too with the help of contemporary events.

As a result, Das wrestles with the idea of Nishkama Karma Yoga (roughly translated, it means action without any expectations from its outcome) by referring to Dhirubhai Ambani, who was described as a Nishkama Karma Yogi by his younger son while he was battling with his brother for a share in the business the father had left behind. Das also talks about Sonia Gandhi, who in a selfless act renounced the job of leading the government after the elections in 2004. Was Dhirubhai Ambani a Karmayogi? And Sonia Gandhi? You are left no wiser after the various arguments put forward by Das.

He opines that Krishna sought recourse to deceit in urging Bhima to attack Duryodhana’s legs, for which the latter was not prepared and in any case such attacks were forbidden. What he does not mention is that just before his fight began, Duryodhana had acquired special powers from his mother to protect himself against Bhima. Krishna used this information to great effect to help the Pandavas. In reality, all the “deceitful” acts of Krishna were essentially aimed at undoing the effects of special divine powers the Kauravas had acquired in their battle against the Pandavas.

So, Krishna, as Das has argued in a different context, was using “evil” to fight “evil”. The question is: Was that really evil and whether it was not Dharma? Debating the relevance or irrelevance of Dharma in such a battle indeed became a little meaningless. There is little doubt that Mahabharata as an epic raises intricate issues pertaining to the relevance of human action in a given role and in the context of pre-ordained fate. The debate over Dharma is also relevant. But Das would have done better if he had narrated the story of Mahabharata in all its details, instead of grappling with the ideas of Dharma or Nishkama Karma Yoga.

- By A K Bhattacharya | Business Standard

]]> 2274 2009-09-17 10:41:48 2009-09-17 17:41:48 open open the-difficulty-of-explaining-dharma publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3941#comments wfw:commentRSS http://zikkir.com/business/3941/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3941 syndication_item_hash 3ea31a165cb1d9c80502366c8e2cf5f4 AT&T speeds Cowboys Stadium connections http://www.ethiopianreview.com/business/2273 Thu, 17 Sep 2009 17:45:00 +0000 http://zikkir.com/business/?p=3945 Telecommunications giant AT&T said Thursday it has completed the installation of an antenna system that will increase the amount of calls customers at concerts and football games can make while inside the new Cowboys Stadium in Arlington.

Dallas-based AT&T (NYSE: T) said adding a new cell site near the stadium will improve the load of wireless voice and data traffic that can be handled when the stadium is packed with fans.

AT&T said the goal of the project was to create integrated cellular coverage indoors and outside the stadium. In the future, patrons outside the stadium, sitting and walking in parking lots, will also benefit from increased voice and data traffic support mechanisms.

- Dallas Business Journal

]]> 2273 2009-09-17 10:45:00 2009-09-17 17:45:00 open open att-speeds-cowboys-stadium-connections publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3945#comments wfw:commentRSS http://zikkir.com/business/3945/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3945 syndication_item_hash 98ff753760cfa591205b10221b13fda1 Live Nation offering $50 pass to 2009 concerts at Denver’s Fillmore http://www.ethiopianreview.com/business/2272 Thu, 17 Sep 2009 17:50:04 +0000 http://zikkir.com/business/?p=3948 Live Nation Inc., the concert promoter that operates Denver’s Fillmore Auditorium, is offering a $49.99 flat-rate pass to remaining 2009 shows at the venue that haven’t sold out.

Those who buy a “Live Nation Club Passport” for $49.99 at the promoter’s website, www.livenation.com, can “see every show at Live Nation clubs in their city for the rest of the year, subject to availability,” Live Nation said in a statement.

The Fillmore’s online schedule associated with the offer listed 12 eligible concerts Thursday, including shows by the B-52s, Insane Clown Posse, Dark Star Orchestra, Matisyahu and Regina Spektor.

More eligible shows will be added daily, Live Nation spokesman John Vlautin said Thursday; there are currently 29 concerts scheduled at the Fillmore through New Year’s Eve.

The average ticket price for a Live Nation club show is $36, including fees, Vlautin said.

The U.S. concert industry has weathered the recession better than most sectors of the economy, according to various reports. Nevertheless, Beverly Hills-based Live Nation (NYSE: LYV) has been particularly aggressive in offering ticket-discount deals this year to try to keep its venues full.

Michael Rapino, Live Nation’s president and CEO, said his company offered $14 million in ticket discounts over the summer, including weekly “no service fee” offers.

Under the Club Passport offer, passholders on Mondays can log on to LiveNation.com/Passport to see a list of available shows and reserve their ticket. “From here, Club Passport holders just bring their Live Nation Club Passport number and photo I.D. to the club’s box office and get right in, no extra charges, no hassles,” Live Nation said.

Live Nation operates 50 venues around the country that are covered by the pass offer, including the Fillmore ballrooms in Denver, Charlotte, Detroit, Miami Beach, New York and San Francisco and House of Blues theaters in 12 cities. The offer is not transferrable from one city to another, Vlautin said.

Live Nation was spun off in 2005 from radio giant Clear Channel Communications. It is the world’s largest concert promoter, staging 22,000 shows in 33 countries last year.

- by Mark Harden | Denver Business Journal

]]> 2272 2009-09-17 10:50:04 2009-09-17 17:50:04 open open live-nation-offering-50-pass-to-2009-concerts-at-denver%e2%80%99s-fillmore publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3948#comments wfw:commentRSS http://zikkir.com/business/3948/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3948 syndication_item_hash 48ccde4d46140086972fc3438c2ecae5 MobiTV sets up UFC app http://www.ethiopianreview.com/business/2271 Thu, 17 Sep 2009 17:51:15 +0000 http://zikkir.com/business/?p=3951 MobiTV Inc. has made an iPhone app that lets users pay to see mixed martial arts fights from the Ultimate Fighting Championship.

The 99 cent app lets people see pay-per-view bouts and other events on their iPhone or iPod touch.

The Ultimate Fighting Championship sells much of its programming via pay-per-view. It’s owned by Zuffa LLC and is based in Las Vegas.

Mixed martial arts is a popular sport based on techniques from different martial arts such as Muay Thai kickboxing, wrestling and jujitsu. UFC puts on a dozen live events that are pay-per-view each year.

- by Steven E.F. Brown | San Francisco Business Times

]]> 2271 2009-09-17 10:51:15 2009-09-17 17:51:15 open open mobitv-sets-up-ufc-app publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3951#comments wfw:commentRSS http://zikkir.com/business/3951/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3951 syndication_item_hash d99a6f3144b9492549fb0282fa0e3a14 IATA: More air travelers seeking premium seats http://www.ethiopianreview.com/business/2270 Thu, 17 Sep 2009 17:52:10 +0000 http://zikkir.com/business/?p=3954 More airline travelers were ditching the cheap seats in July in favor of premium seats, but the numbers were still well below last year, according to the International Air Transport Association.

The number of passengers traveling in premium seats in July fell 14 percent, better than the 21.3 percent decline in June.

“Consumer confidence has been rising in most of the major economies since the end of the first quarter, and the number of passengers travelling on economy tickets bottomed out at the same time,” the IATA noted in its report.

Among other findings:

* Premium travel correlated with world trade, which bottomed in May and started rising in June, but further rises are forecast to be relatively weak.
* Excess premium capacity and changed corporate travel buying kept yields down 23 percent and premium revenue down 35 percent to 40 percent in July.
* Consumer confidence has been rising since February, pulling economy travel up with it. Economy travel was down 1.2 percent in July.
* Passenger numbers are starting to turn up, but there is a long way to go before activity returns to levels seen in 2007 and early 2008.
* With economic growth forecast to be relatively weak and much excess capacity the problem of low yields remains.

“Economy travel is a little harder to interpret, since recent moves have been driven not just by those travelling for leisure and to visit friends and family, but also business travelers switching from the front to the back of the aircraft,” the report noted.

- South Florida Business Journal

]]> 2270 2009-09-17 10:52:10 2009-09-17 17:52:10 open open iata-more-air-travelers-seeking-premium-seats publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3954#comments wfw:commentRSS http://zikkir.com/business/3954/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3954 syndication_item_hash 49b979820682ac45486e415f55480cca Marcus Corp. 1Q income down http://www.ethiopianreview.com/business/2269 Thu, 17 Sep 2009 17:52:57 +0000 http://zikkir.com/business/?p=3957 The Marcus Corp. said its fiscal first-quarter revenue and net income declined as its movie theater division continued performing well but its lodging division struggled in the recession.

Milwaukee-based Marcus (NYSE: MCS) said Thursday revenue for the first quarter ending Aug. 27 were $110.2 million, down 8.5 percent compared with $120.4 million for the same quarter a year ago.

Net income was down 17.8 percent to $10.2 million, or 34 cents per share, compared with a net income of $12.4 million, or 42 cents per share, in the first quarter of the previous fiscal year. The per-share figure fell 4 cents short of analysts’ estimates from Thomson Financial Network.

“Our diversity continued to provide overall stability to our financial performance in the first quarter,” said president and CEO Gregory Marcus. “The solid results of Marcus Theatres again helped to compensate for the downturn in the lodging industry and its impact on the performance of Marcus Hotels and Resorts.”

Marcus Theatres ended the first quarter with the same revenue as last year’s first quarter, when the business was helped by the second-highest grossing movie of all time, “The Dark Knight,” said Marcus. He said the division’s operating income for the first quarter was only slightly lower than the prior year’s record results.

The top-performing pictures for the first quarter were “Transformers 2: Revenge of the Fallen,” “Harry Potter and the Half Blood Prince,” “Up” in digital 3D and “The Hangover.” The division’s first-quarter revenue also benefited from premium pricing for its digital 3D and UltraScreen.

September, which historically is a slower month for films, has started better than last year, due in part to the box office appeal of another digital 3D picture, “Final Destination: Death Trip,” Marcus said. A second September digital 3D film, “Cloudy with a Chance of Meatballs,” opens this Friday. Three more digital 3D pictures are in the pipeline for fall.

Results for Marcus Hotels and Resorts continued to be impacted by the industrywide decrease in travel, Marcus said. However, trends in revenue per available room — a key industry metric — improved slightly in the first quarter, he said. Revenue per available room for the first quarter was down 21.1 percent from last year’s first quarter, compared with a decrease of 23 percent in the previous quarter.

“Leisure travel contributed to the slight improvement in trends, albeit with lower average rates, while business travel, and especially group business, remains very soft,” Marcus said.

Bill Otto, who is president of Marcus Hotels and Resorts, said: “There appears to be some growing optimism in the marketplace that the industry will see some improvement as we head into calendar 2010, but it is very difficult to predict exactly when that may occur.”

Marcus Corp. stock was trading Thursday morning at $13.97, up 10 cents.

- The Business Journal of Milwaukee

]]> 2269 2009-09-17 10:52:57 2009-09-17 17:52:57 open open marcus-corp-1q-income-down publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3957#comments wfw:commentRSS http://zikkir.com/business/3957/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3957 syndication_item_hash eaca2193b9928c266349052588a0434e Spirit Airlines hit with record fine http://www.ethiopianreview.com/business/2268 Thu, 17 Sep 2009 17:53:55 +0000 http://zikkir.com/business/?p=3960 Spirit Airlines has been hit with a record civil fine for violating consumer protection regulations.

The U.S. Department of Transportation on Thursday fined the Miramar-based discount carrier $375,000 for failing to comply with rules governing denied boarding compensation, fare advertising, baggage liability and other consumer protection requirements. The civil penalty is a record for these kinds of violations, the DOT said in a news release.

Spirit bumped passengers from oversold flights, but did not provide compensation or a written notice of their rights to compensation as required. Spirit also failed to resolve baggage claims within a reasonable period, on one occasion taking 14 months to provide compensation.

In addition, the airline violated DOT rules by providing compensation for delayed baggage only for the outbound leg of round-trip flights and only for purchases made more than 24 hours after arrival. Spirit also violated baggage liability laws for international travel by refusing to accept responsibility for missing laptop computers and certain other items it accepted as baggage, the DOT said.

The airline violated DOT rules requiring airfare ads to state the full price by omitting carrier-imposed fees from the base fare. Spirit also violated DOT rules by failing to retain copies of consumer complaints and by failing to file required reports in a timely manner, the DOT added.

“Selling fares for $9 has made us very popular and, a few years ago when we adopted this model, we had some growing pains during the transition,” Spirit spokeswoman Misty Pinson said in an e-mail. “We have addressed all the core issues that caused customer experience challenges a few years ago, including upgrading our computer systems and utilizing a new reservations partner.”

Customer service has suffered at Spirit in favor of cutting costs, said Stuart Klaskin, an aviation analyst with Coral Gables-based Klaskin, Kushner & Co.

“I think, for a while, Spirit lost sight of the other factors in the travel experience outside just pricing,” he said. “In fairness, my impression is that they are taking steps to move the airline in a direction where the consumer experience is more positive from a travel perspective, and not just a price perspective.”

But, a reputation for poor service makes Spirit vulnerable to other low-cost carriers angling to compete with them, Klaskin noted. Carriers such as JetBlue and Southwest are expanding their footprints and, given the choice to fly with a carrier that charges a little more money but provides a better customer experience, consumers will do so, he said.

“The great fallacy with low-cost airlines has always been that price wins,” Klaskin said. “There is a service element, too.”

- by Bill Frogameni | South Florida Business Journal

]]> 2268 2009-09-17 10:53:55 2009-09-17 17:53:55 open open spirit-airlines-hit-with-record-fine publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3960#comments wfw:commentRSS http://zikkir.com/business/3960/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3960 syndication_item_hash c67d6ccd48fdc2722dd32d4214a901f9 American Airlines reaffirms Boeing 737 commitments http://www.ethiopianreview.com/business/2267 Thu, 17 Sep 2009 17:54:38 +0000 http://zikkir.com/business/?p=3963 AMR Corp., parent company of American Airlines, said Thursday that it has received a financial commitment to buy its previously ordered Boeing 737s, as well as selecting an engine provider for its order of 787 airplanes.

The Fort Worth company (NYSE: AMR) made the financing announcement when it detailed “significant steps to face near-term challenges,” which included scaling back operations at airports such as St. Louis and Raleigh/Durham, N.C.

AMR said it has obtained a total of $2.9 billion in additional liquidity and new aircraft financing. It’s received $1.6 billion in sale-leaseback financing from GECAS covering its previously ordered Boeing Co. (NYSE: BA) 737s, which are built in Renton. American said it will take delivery of 84 737s during 2009-2011, with 16 already having been delivered. The financing deal, AMR said, means it has the ability to finance all of its remaining 737 deliveries through 2011 with “traditional financing sources.”

American Airline said it’s selected GE Aviation as the provider of engines for its 787s. American previously announced plans to acquire 42 787-9 model planes, which are built in Everett, with the right to acquire another 58 787s. “In addition to supporting widebody replacement, the 787s are expected to support the growth American expects in the future from its planned joint business with British Airways and Iberia,” the company said in a statement.

- Puget Sound Business Journal (Seattle)

]]> 2267 2009-09-17 10:54:38 2009-09-17 17:54:38 open open american-airlines-reaffirms-boeing-737-commitments publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3963#comments wfw:commentRSS http://zikkir.com/business/3963/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3963 syndication_item_hash fade4273a5b7e8aef7543a5d5bc6fc36 American Eagle flights to connect Jacksonville and Chicago http://www.ethiopianreview.com/business/2266 Thu, 17 Sep 2009 17:55:24 +0000 http://zikkir.com/business/?p=3966 Jacksonville International Airport will have three new direct flights connecting it to Chicago starting next summer.

American Eagle’s parent company, American Airlines, is expanding its Chicago hub and raising or borrowing nearly $3 billion in new liquidity and aircraft financing. The only direct service currently available to Chicago is through United Airlines.

American Eagle operates more than 1,700 daily flights to more than 140 cities throughout the U.S., Canada, the Bahamas, Mexico and the Caribbean on behalf of American Airlines. Both airlines are units of AMR Corp. (NYSE: AMR).

- Jacksonville Business Journal

]]> 2266 2009-09-17 10:55:24 2009-09-17 17:55:24 open open american-eagle-flights-to-connect-jacksonville-and-chicago publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3966#comments wfw:commentRSS http://zikkir.com/business/3966/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3966 syndication_item_hash f35b22150ed5bc03c7110e9a9ac637e0 US Airways to offer lie-flat seats for Atlantic flights http://www.ethiopianreview.com/business/2265 Thu, 17 Sep 2009 17:56:13 +0000 http://zikkir.com/business/?p=3969 US Airways Group Inc. is redesigning planes for trans-Atlantic flights so business class seats can be reclined flat.

The new Envoy Suite service also will have a new on-demand in-flight entertainment systems.

“We’re excited about bringing this industry-leading concept to our customers,” said Andrew Nocella, senior vice president, marketing and planning, in a statement. “The innovative cabin layout and thoughtful design of the Envoy Suite allows for greater comfort and functionality for our international travelers.”

The Envoy Suite will debut in December with other all 15 planned aircraft installations complete by summer 2012, officials said for a total of 24 aircraft.

US Airways (NYSE:LCC) is based in Tempe.

- Phoenix Business Journal

]]> 2265 2009-09-17 10:56:13 2009-09-17 17:56:13 open open us-airways-to-offer-lie-flat-seats-for-atlantic-flights publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3969#comments wfw:commentRSS http://zikkir.com/business/3969/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3969 syndication_item_hash 9ea8b147551439b6e209047a39a5674f American to add O’Hare-Harrisburg flights http://www.ethiopianreview.com/business/2264 Thu, 17 Sep 2009 17:57:08 +0000 http://zikkir.com/business/?p=3972 As part of a restructuring aimed at eliminating “unprofitable flying,” American Airlines announced it is adding service to Pennsylvania destinations from Chicago-O’Hare International Airport, even as it slashes flights elseswhere.

The O’Hare additions include flights to Allentown, Scranton-Wilkes Barre and Harrisburg, as well as Charleston, W.Va., and Dayton, Ohio.

American made the announcement in St. Louis — where it plans to cut 46 daily flights — on Thursday, as part of a larger plan to raise and borrow $2.9 billion and add flights in American’s hubs in Chicago, Dallas, Miami and New York. American called those four cities, along with Los Angeles, the “cornerstones” of its network.

The $2.9 billion includes $1 billion in cash from the sale of the AAdvantage frequent flyer miles program to Citi; $280 million in cash under a loan facility from GE Capital Aviation Services secured by owned aircraft; and $1.6 billion in sale-leaseback financing commitments from GECAS for Boeing 737s previously ordered by American.

Pittsburgh International Airport appeared unaffected by Thursday’s announcement.

- Pittsburgh Business Times

]]> 2264 2009-09-17 10:57:08 2009-09-17 17:57:08 open open american-to-add-o%e2%80%99hare-harrisburg-flights publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3972#comments wfw:commentRSS http://zikkir.com/business/3972/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3972 syndication_item_hash 02247125148115117f4c85fd596db3c1 American to cut St. Louis flight next year http://www.ethiopianreview.com/business/2263 Thu, 17 Sep 2009 17:58:08 +0000 http://zikkir.com/business/?p=3975 American Airlines will be cutting its two daily flights from Wichita to St. Louis next year.

The cuts, to take place in April, are part of 46 flights the airline announced Thursday it would be cutting next year, along with ending service to 20 cities.

By next summer, American will also cut St. Louis service to 19 other cities, including Atlanta, Indianapolis, Minneapolis, San Francisco and Washington, D.C.

Valerie Wise, airport service and business development manager at Wichita Mid-Continent Airport, says American also has daily flights to Chicago and Dallas.

For now, she says, those flights are not in jeopardy.

American announced the reductions in St. Louis on Thursday as part of a larger plan to raise and borrow $2.9 billion and add flights in American’s hubs in Chicago, Dallas, Miami and New York. American called those four cities, along with Los Angeles, the cornerstones of its network.

The cuts come on the heels of report released Tuesday by the International Air Transport Association Airlines that said airlines worldwide will lose $11 billion in 2009.

“They’re cutting back because of the downturn in the travel industry,” Wise says of the American reductions.

Passenger traffic is expected to decline by 4 percent and cargo by 14 percent this year and the industry, according to IATA report.

The American flight out of Wichita to St. Louis is operated Chautauqua Airlines Inc.

Wise says after its cut next year, passengers will still be able to get from Wichita to St. Louis, but it won’t be on American and it won’t be nonstop.

- by Daniel McCoy | Wichita Business Journal

]]> 2263 2009-09-17 10:58:08 2009-09-17 17:58:08 open open american-to-cut-st-louis-flight-next-year publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3975#comments wfw:commentRSS http://zikkir.com/business/3975/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3975 syndication_item_hash 6fa41d3b93124af95d155c5b5924b9cc Frontier’s Lynx adds flights to Durango, Oklahoma City, Bozeman http://www.ethiopianreview.com/business/2262 Thu, 17 Sep 2009 17:59:18 +0000 http://zikkir.com/business/?p=3978 Frontier Airlines said Thursday it will increase daily service from Denver to Durango, Oklahoma City and Bozeman, Mont., through its Lynx Aviation subsidiary.

Lynx will add a daily flight to each destination in addition to existing service by the main Frontier line.

The short-hop airline recently took delivery of its 11th Bombardier Q400 aircraft, allowing it to step up service.

“This clearly signals we are now in a growth mode,” Daniel Shurz, Frontier VP of strategy and planning, said in a statement.

The frequency increase to Durango and Oklahoma City begins Nov. 1, with Bozeman to follow Nov. 5.

Lynx will fly daily to and from Durango-La Plata County Airport in addition to Frontier’s two daily nonstops from Denver.

Lynx also will fly daily to Oklahoma City’s Will Rogers Airport; Frontier has four nonstops there from Denver. And Lynx will fly four to seven times a week to Bozeman’s Gallatin Field Airport, depending on the season; Frontier has one daily nonstop there.

- Denver Business Journal

]]> 2262 2009-09-17 10:59:18 2009-09-17 17:59:18 open open frontier%e2%80%99s-lynx-adds-flights-to-durango-oklahoma-city-bozeman publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3978#comments wfw:commentRSS http://zikkir.com/business/3978/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3978 syndication_item_hash 83007012c0c399815dbda5f6836a7888 Thompson Hine adds three ATL lawyers http://www.ethiopianreview.com/business/2261 Thu, 17 Sep 2009 18:00:10 +0000 http://zikkir.com/business/?p=3981 Three lawyers from intellectual property law firm Kaplan Ward & Patel LLC are now with Thompson Hine LLP’s Intellectual Property practice group.

Robert M. Ward and Ash Patel joined Thompson Hine’s Atlanta office as partners and Justin Ward as an associate.

Robert Ward focuses his practice on litigation, patents, trademarks, copyrights, contracts, licensing, antitrust, trade secrets, unfair competition and related causes. Over the course of his legal career, which spans nearly 40 years, he has been involved in nearly 1,000 cases, has acted as lead counsel in more than 200 intellectual property cases and has more than 100 reported decisions.

Patel focuses on patent, trademark, unfair competition, antitrust, trade secret and copyright litigation, as well as trademark prosecution, patent prosecution principally in the biomedical/ biotechnology, pharmaceutical, chemical and mechanical arts, together with related portfolio management, complex licensing and strategic agreements.

Justin Ward works in litigation and also represents clients in the areas of copyrights, trademarks and licensing with a particular emphasis on biotechnology, pharmaceutical, chemical and technology.

“The decades of experience that Ash, Bob and Justin bring to Thompson Hine allow us to expand the breadth and depth of services we’re able to offer our clients throughout the firm, and are an excellent complement to our Life Sciences practice based here in Atlanta,” said Walt Linscott, partner-in-charge of Thompson Hine’s Atlanta office, in a statement.

- Atlanta Business Chronicle

]]> 2261 2009-09-17 11:00:10 2009-09-17 18:00:10 open open thompson-hine-adds-three-atl-lawyers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3981#comments wfw:commentRSS http://zikkir.com/business/3981/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3981 syndication_item_hash 5dae4aee7ecc8831f2333e7ca554d5ea Washington Post and online operations to merge in 2010 http://www.ethiopianreview.com/business/2260 Thu, 17 Sep 2009 18:01:06 +0000 http://zikkir.com/business/?p=3984 The Washington Post and washingtonpost.com have set a wedding date. The print and online operations of the newspaper will merge as of Jan. 1, 2010. Both are units of The Washington Post Co. (NYSE: WPO).

The Washington Business Journal obtained a copy of a memo detailing the change that Post publisher Katharine Weymouth sent out to employees Thursday morning.

Weymouth said that it was important to create one organization for print and online operations that would mirror the perception of readers, users and advertisers. As such, Weymouth said that The Washington Post and the Washington Post Digital organization responsible for the operations of washingtonpost.com would join together, integrating newspaper and digital operations into The Washington Post as of Jan. 1, 2010. Weymouth said Washington Post Digital employees responsible for washingtonpost.com would become employees of The Washington Post at that time.

Website leadership will remain in place. Weymouth said that current washingtonpost.com leader Goli Sheikholeslami, would become General Manager of Digital, and Vice President of Digital Product Development at The Washington Post.

Digital Advertising and Digital Marketing Departments will also be created at the Post to allow online sales to keep their focus while at the same time coordinating with the print sales force.

Weymouth said that The Post’s information technology department will become fully integrated under Roger Andelin as vice president of information technology, while the online unit’s accounting, human resources and legal functions will now come under Usha Chaudhary, vice president of finance and administration and CFO; Wayne Connell, vice president of human resources; and Eric Lieberman, vice president and counsel.

- by Tucker Echols | Washington Business Journal

]]> 2260 2009-09-17 11:01:06 2009-09-17 18:01:06 open open washington-post-and-online-operations-to-merge-in-2010 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3984#comments wfw:commentRSS http://zikkir.com/business/3984/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3984 syndication_item_hash 1e9e0c47732e216f0a7f99d34ea63edb Holland-Mark launches digital division http://www.ethiopianreview.com/business/2259 Thu, 17 Sep 2009 18:02:02 +0000 http://zikkir.com/business/?p=3987 Advertising agency Holland-Mark has formed a division that will oversee digital marketing efforts for the agency’s clients, the shop said Thursday.

Marketing veteran Mike Troiano has been tapped to head the new unit, which is dubbed Holland-Mark Digital. Troiano has worked at a variety of traditional ad agencies and interactive startups including McCann-Erickson, m-Qube and Crimson Hexagon, among others. Of late, Troiano has become a social media guru with a large following of nearly 10,000 on Twitter and a well-known blog, www.ScalableIntimacy.com.

“He is the real deal. He’s a businessman, a brand strategist and a social media expert. He understands how to produce a tangible return from the digital investment. And that’s what clients seek,” said Chris Colbert, Holland-Mark’s CEO, in a statement.

Holland-Mark’s clients include Grill 23, MassMutual and Virgin Money.

- by Lisa van der Pool | Boston Business Journal

]]> 2259 2009-09-17 11:02:02 2009-09-17 18:02:02 open open holland-mark-launches-digital-division publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3987#comments wfw:commentRSS http://zikkir.com/business/3987/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3987 syndication_item_hash acbf1e3a651dbdc280cdd547faf48247 More furloughs looming at Tampa Tribune parent http://www.ethiopianreview.com/business/2258 Thu, 17 Sep 2009 18:02:49 +0000 http://zikkir.com/business/?p=3990 Employees at The Tampa Tribune, WFLA-Channel 8 and TBO.com are being asked to take at least two additional furlough days in the fourth quarter while Media General Inc. tries to right itself in tougher economic times.

A local source with knowledge of the Richmond, Va.-based television and newspaper chain owner said employees were informed Wednesday they would need to take the unpaid leave on top of 10- and 13-day furloughs ordered by Media General earlier this year.

It’s not clear how widespread the furloughs are.

Richmond BizSense, an online news outlet in Virginia, along with a few of Media General’s publications Thursday morning reported that employees at the flagship Richmond Times-Dispatch were asked to take an additional five days, one in the third quarter and four more in the fourth quarter.

Jim Zimmerman, a vice president with the company, told employees in a memo that some Media General locations experienced “last-minute advertiser cancellation and deferrals of planned spending,” according to BizSense.

An after-hours call to John Schueler, president of Florida Publishing Group of Media General, Wednesday was pending return.

Media General has been reducing its work force since the end of 2008 and suspended the company’s match to the 401(k) plan and pension plans last May.

Media General (NYSE: MEG) reported a net gain of $20.6 million, or 90 cents a share, in the second quarter ended June 28, a significant improvement on the $532.2 million, or $24.12 a share, loss the year before, according to documents filed with the Securities and Exchange Commission.

The 2008 losses were mostly the result of a $778.3 million non-cash charge Media General shouldered that year.

Media General credited its move into the black from its continued cuts in operation expenses, including work force reductions.

Revenue, however, dropped from $204.9 million to $168.3 million.

Those numbers, however, were enough to boost Media General’s sagging stock a day after the release of financials, climbing immediately to $4.33, double what it closed prior to the financial release.

Shares Wednesday closed at $9.12, up nearly 5 percent from the day before. Media General has traded between $1.25 and $27.18 over the past year.

- by Michael Hinman | Tampa Bay Business Journal

]]> 2258 2009-09-17 11:02:49 2009-09-17 18:02:49 open open more-furloughs-looming-at-tampa-tribune-parent publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3990#comments wfw:commentRSS http://zikkir.com/business/3990/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3990 syndication_item_hash 4d8490982aeb57df9d3afed65d0a2330 ‘The Wash Allen Show’ heads to Los Angeles, Chicago http://www.ethiopianreview.com/business/2257 Thu, 17 Sep 2009 18:03:33 +0000 http://zikkir.com/business/?p=3993 Television show host Wash Allen is expanding his Houston-based show to Los Angeles and Chicago as part of an agreement with ABC’s Live Well HD Network.

“The Wash Allen Show” is independently owned, produced and syndicated by Allen and Judy Foston of public relations firm Foston International, also based in Houston.

Formatted as a reality show, Allen follows public service organizations as they stage their galas and special events.

“The Wash Allen Show” will debut on the ABC network on Oct. 3.

“The show has been well received and this expansion is what Judy and I have been discussing for a long time, and it is great to see this finally happen,” Allen said in a statement.

The show is already being broadcast in other Texas markets as well as in Louisiana and Mississippi.

Allen plans to roll out his show nationally in more markets.

- Houston Business Journal

]]> 2257 2009-09-17 11:03:33 2009-09-17 18:03:33 open open %e2%80%98the-wash-allen-show%e2%80%99-heads-to-los-angeles-chicago publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3993#comments wfw:commentRSS http://zikkir.com/business/3993/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3993 syndication_item_hash 1283555d87a63c579cbe1ae423ad5371 United Western Bancorp prices stock offer at $4 a share http://www.ethiopianreview.com/business/2256 Thu, 17 Sep 2009 18:04:33 +0000 http://zikkir.com/business/?p=3996 United Western Bancorp Inc. Thursday priced its unwritten offering of 20 million shares of common stock at $4 per share.

Denver-based United Western (NASDAQ: UWBK), the parent of United Western Bank, said it expects net proceeds from the offering to be $74.1 million after underwriting discounts, commissions and expenses.

The company plans to use the proceeds to support its capital requirements, pay down its debt and for general purposes.

Underwriters will have a 30-day option to buy up to an additional 3 million shares to cover any over-allotments.

Sandler O’Neill & Partners LP is the lead manager for the offering; FBR Capital Markets & Co. and Sterne, Agee and Leach Inc. are co-managers.

United Western said it expects to close the sale of shares about Sept. 22.

- Denver Business Journal

]]> 2256 2009-09-17 11:04:33 2009-09-17 18:04:33 open open united-western-bancorp-prices-stock-offer-at-4-a-share publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3996#comments wfw:commentRSS http://zikkir.com/business/3996/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3996 syndication_item_hash 3d789668a009ef9435ce91cd8360ff1f Colorado mortgage interest at 4.97%; low rates spurring refinancing http://www.ethiopianreview.com/business/2255 Thu, 17 Sep 2009 18:05:42 +0000 http://zikkir.com/business/?p=3999 The typical 30-year fixed mortgage in Colorado carried an average rate of 4.97 percent Thursday, Zillow Mortgage Marketplace reports.

Local mortgage rates have been trending downward since late August, when they topped 5.2 percent, according to Zillow data. They fell below 4.9 percent early last week and have edged up since then.

Nationwide, Zillow reports an average 4.99 percent rate for 30-year fixed mortgages.

Long-term mortgage rates a year ago averaged 5.78 percent, according to Freddie Mac data. Freddie Mac chief economist Frank Nothaft said rates may “reach a record annual low since the survey began in 1971.”

Those low rates are helping revive housing sales, but they are also bringing many existing homeowners back to the table. The Mortgage Bankers Association this week reported almost two out of three mortgage applications last week were for refinancing existing mortgages.

The Commerce Department Thursday reported housing starts rose to the highest level in nine months in August, the fourth consecutive monthly increase. Building permits also rose to the highest level since last November.

- by Mark Harden | Denver Business Journal

]]> 2255 2009-09-17 11:05:42 2009-09-17 18:05:42 open open colorado-mortgage-interest-at-4-97-low-rates-spurring-refinancing publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/3999#comments wfw:commentRSS http://zikkir.com/business/3999/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/3999 syndication_item_hash fa02011e8713b899a2fb2ef555fc08da Freddie Mac: Mortgage rates fall http://www.ethiopianreview.com/business/2254 Thu, 17 Sep 2009 18:06:45 +0000 http://zikkir.com/business/?p=4002 The 30-year, fixed-rate mortgage averaged 5.04 percent, with points averaging 0.7 for the week ended Sept. 17. That is down from previous week, when it averaged 5.07 percent, according to Freddie Mac (NYSE: FRE).

Last year at this time, the 30-year, fixed-rate mortgage averaged 5.78 percent.

The 15-year, fixed-rate mortgage this week averaged 4.47 percent, with points averaging 0.6, down from the previous week, when it averaged 4.5 percent. A year ago at this time, the 15-year, fixed-rate mortgage averaged 5.35 percent. This is the lowest it has been since the McLean, Va.-based lender started tracking it in 1991.

“Interest rates for fixed-rate mortgages eased for the third consecutive week and remained at three-month lows,” said Frank Nothaft, Freddie Mac VP and chief economist, in a news release.

On Wednesday, the Mortgage Bankers Association reported that loan applications fell by a seasonally adjusted 8.6 percent, the result of the Labor Day holiday.

- South Florida Business Journal

]]> 2254 2009-09-17 11:06:45 2009-09-17 18:06:45 open open freddie-mac-mortgage-rates-fall publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4002#comments wfw:commentRSS http://zikkir.com/business/4002/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4002 syndication_item_hash 8605bc305c4d9d87ab76386dc7411dca CMHA fight escalates as Barnett files defamation suit http://www.ethiopianreview.com/business/2253 Thu, 17 Sep 2009 18:08:35 +0000 http://zikkir.com/business/?p=4005 Cincinnati Metropolitan Housing Authority Chairman Arnold Barnett is seeking $500,0000 in damages from Robert Newman, the local attorney who filed a racism complaint against Barnett and the low-income housing agency last month.

A lawsuit filed in Hamilton County Common Pleas Court Thursday morning alleges Newman made false and defamatory statements about Barnett in newspaper stories about administrative complaints filed against CMHA. The complaint alleges the statements caused “permanent harm to (Barnett’s) reputation, shame, mortification and emotional distress.”

The complaint seeks $500,000 in general damages, unspecified punitive damages and an apology and retraction from Newman.

Newman filed a complaint with the U.S. Department of Housing and Urban Development accusing CHMA of racial discrimination in its award of Section 8 Housing vouchers. A second complaint accused Barnett of violating the Civil Rights Act by threatening to use “public housing resources” to retaliate against Newman for filing the Aug. 18 complaint.

The basis of the charge are comments Barnett made to local media outlets, including the Business Courier, in which he called for CMHA to purchase low-income housing units in Hyde Park, where Newman resides.

- by Dan Monk | Business Courier of Cincinnati

]]> 2253 2009-09-17 11:08:35 2009-09-17 18:08:35 open open cmha-fight-escalates-as-barnett-files-defamation-suit publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4005#comments wfw:commentRSS http://zikkir.com/business/4005/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4005 syndication_item_hash 8c7c32d21238adc4857ed020bee1835a Housing starts flat in West, up 1.5% in U.S. http://www.ethiopianreview.com/business/2252 Thu, 17 Sep 2009 18:09:39 +0000 http://zikkir.com/business/?p=4008 Housing construction in the Western states, including Colorado, was unchanged in August from the previous month, but was down 33.2 percent from a year earlier, the U.S. Department of Commerce reported Thursday.

The nation as a whole did slightly better, with housing starts up 1.5 percent in August from July, to the highest level since last November.

Still, housing starts nationwide were down 29.6 percent from a year earlier, according to the latest monthly report by the Commerce Department’s U.S. Census Bureau.

In the 13 Western states, there were 127,000 privately-owned housing units started in August, about the same as in July.

There were 126,000 housing starts in the West in June, 137,000 in May, 114,000 in April and 80,000 in March.

In August 2008, there were 190,000 housing starts in the West.

For single-family homes alone, Western states saw 111,000 starts in August — a 0.9 percent decrease from July’s 112,000 and an 18.4 percent drop from last August’s 136,000.

Housing permits in the West for homes not yet started were down 4.9 percent in August from the previous month.

Nationwide, there were 598,000 housing starts in August, up from 589,000 in July but down from 849,000 the previous August.

Numbers are seasonally adjusted, and numbers from previous months have been revised from earlier reports based on new data.

The West as defined by the Census Bureau encompasses Colorado as well as Alaska, Arizona, California, Hawaii, Idaho, Montana, New Mexico, Oregon, Montana, Utah, Nevada, Washington and Wyoming

- by Mark Harden | Denver Business Journal

]]> 2252 2009-09-17 11:09:39 2009-09-17 18:09:39 open open housing-starts-flat-in-west-up-1-5-in-u-s publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4008#comments wfw:commentRSS http://zikkir.com/business/4008/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4008 syndication_item_hash a8e48759b03f36a350a203b95bc50340 North Carolina Technology Association: IT recovery still on hold http://www.ethiopianreview.com/business/2251 Thu, 17 Sep 2009 18:11:08 +0000 http://zikkir.com/business/?p=4011 The number of North Carolina information technology job openings increased by less than 1 percent in August from July, signaling that recovery in the IT job market is still on hold, a report released Wednesday by the North Carolina Technology Association says.

North Carolina had 1,070 IT job openings in August compared to 1,060 in July. Compared to a year ago, the number of job openings is down by 65 percent.

The only industry showing growing demand is financial services, which has increased over the past four months, according to the report. All other industries remained flat or were cutting positions.

The NCTA report does point to promising job growth on a nationwide level. The national IT job market showed an increase of 3.3 percent, the first positive growth in more than two years.

- by Frank Vinluan | Triangle Business Journal

]]> 2251 2009-09-17 11:11:08 2009-09-17 18:11:08 open open north-carolina-technology-association-it-recovery-still-on-hold publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4011#comments wfw:commentRSS http://zikkir.com/business/4011/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4011 syndication_item_hash e3799180b15aba2856ad6dfe75dc72d7 Milton Jones to join distressed asset firm http://www.ethiopianreview.com/business/2250 Thu, 17 Sep 2009 18:12:24 +0000 http://zikkir.com/business/?p=4014 Milton Jones has found his new gig.

Jones, who Wednesday announced his retirement as market president of Atlanta and Georgia for Bank of America, is joining asset management and advisory firm Integrated Capital Strategies LLC as a managing partner, the company announced Thursday.

In his new role, Jones will split time in Atlanta and Charlotte, N.C. ICS specializes in distressed real estate asset management, including loans, securities and funds.

ICS was founded in July by retired BofA Global Capital Markets chief Charlie Williams, and former Wachovia Corp. retail credit and direct mortgage lending guru Walter Davis.

“I’ve had a really great 32 and a half years with the bank,” Jones said in an interview with Atlanta Business Chronicle. “But if I was ever going to be an entrepreneur, I knew it would be better to do so at 57 than 65. If not now, when?”

Jones served two stints as Atlanta and Georgia market president of BofA, serving 32 years with the banking juggernaut. In 2003, he left the bank’s top post in Atlanta to lead Bank of America’s supply-chain support operations and the North Carolina market.

He returned to Atlanta, his hometown and where he cut his teeth in banking, in 2007.

“We are pleased to have a senior executive of Milton’s caliber join our firm,” Williams and Davis said in a joint statement. “We both had the opportunity to work with Milton during our tenure at Bank of America. He is an accomplished executive who we know will be a great addition to Integrated Capital Strategies.”

ICS does not take ownership of property and other real estate interests, but manages and helps resolved distressed assets, Jones said.

Jones will be replaced at BofA by Geri Thomas, senior vice president of human resources and Global Diversity and Inclusion.

Jones held numerous leadership posts for Bank of America and its preceding companies in his three decades with the bank.

Jones graduated from the University of Notre Dame in 1974 with an accounting degree, and joined KPMG LLP in Atlanta.

In 1977, he joined what was then Citizens & Southern National Bank as a project analyst, and over the next three decades rose through the ranks despite repeated mergers and buyouts. C&S was ultimately one of the key banks that became NationsBank and eventually Bank of America.

Jones is a native Atlanta with deep roots in the Big Peach. He is a resident of Ansley Park, his father was a Lockheed Martin employee and his mother spent her career in the Atlanta Public Schools.

Jones is president and chairman of 100 Black Men of Atlanta, one of the largest chapters in the United States. He has served the group, which focuses on educational achievement for underprivileged youth, since 1997. During his time with Bank of America, the financial goliath became the title sponsor of the Atlanta Football Classic, the local chapter’s largest charitable event.

Jones said he would continue to serve as the top officer of 100 Black Men of Atlanta, though he will transition off the board of the Metro Atlanta Chamber.

- by J. Scott Trubey and Maria Saporta | Atlanta Business Chronicle

]]> 2250 2009-09-17 11:12:24 2009-09-17 18:12:24 open open milton-jones-to-join-distressed-asset-firm publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4014#comments wfw:commentRSS http://zikkir.com/business/4014/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4014 syndication_item_hash c0e105288f425b85dc80f1b30e5074e7 Minnesota reports mixed employment figures http://www.ethiopianreview.com/business/2249 Thu, 17 Sep 2009 18:13:53 +0000 http://zikkir.com/business/?p=4017 Minnesota’s unemployment rate fell a tenth of a percentage point last month, even as employers in the state shed 10,300 more jobs, according to numbers out Thursday from the Minnesota Department of Employment and Economic Development.

The state’s unemployment rate was 8 percent in August, down from 8.1 percent in July. The U.S. unemployment rate, meanwhile, climbed three-tenths of a point to 9.7 percent.

“The road to economic recovery will lead us through many twists and turns,” DEED Commissioner Dan McElroy said in a news release. “I am encouraged to see the gap between Minnesota’s and the nation’s unemployment rates widening, suggesting that the state may experience an earlier economic rebound.”

Despite the lower unemployment, there were still fewer people working in Minnesota in August than July — job totals stood at 2,644,100, down from 2,654,400. The nation lost 216,000 jobs nationwide. Unemployment can fall along with jobs if people stop looking for work, for example, or leave the state.

Minnesota has lost 4.3 percent of its jobs over the past 12 months; the nation as a whole has lost 4.4 percent.

Three of the state’s 11 industry sectors gained employment during the month. The strongest sector was professional and business services, which added 1,300 jobs. Other gains were seen in the “other services” sector, up 400, and the information sector, up 300.

There were job losses in leisure and hospitality, down 3,200 jobs; trade, transportation and utilities, down 3,000; education and health care, down 2,200; government, down 2,100; manufacturing, down 900; financial activities, down 500; construction, down 300; and logging and mining, down 100.

Job losses over the past year have been highest in the Duluth area, down 5.3 percent. The Minneapolis-St. Paul area is down 4 percent, St. Cloud, down 3.7 percent, and Rochester, down 2 percent.

The job situation may not improve for a while either, according to survey results also out Thursday.

DEED’s fourth annual business services survey, conducted in conjunction with the Federal Reserve Bank of Minneapolis, found mixed prospects among Minnesota professional business services firms.

The survey found 66 percent of business services firms expect employment levels to remain the same next year. More than half expect employee wages to remain the same or decrease. A minority of firms expected revenue or profit increases.

- by Chris Newmarker | Minneapolis / St. Paul Business Journal

]]> 2249 2009-09-17 11:13:53 2009-09-17 18:13:53 open open minnesota-reports-mixed-employment-figures publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4017#comments wfw:commentRSS http://zikkir.com/business/4017/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4017 syndication_item_hash 8b863dc3d94bcaa8bbd265b9188e495c NY State unemployment at 16-year high http://www.ethiopianreview.com/business/2248 Thu, 17 Sep 2009 18:14:50 +0000 http://zikkir.com/business/?p=4020 New York state’s unemployment rate rose to 9 percent in August while the Buffalo Niagara region came in below that figure at 8.4 percent, the Department of Labor reported Thursday.

The state’s jobless rate has not been that high since April of 1983.

For the Buffalo area, unemployment surged from a year ago as the August 2008 rate was 5.8 percent. In the year-over-year period, the region, consisting of Erie and Niagara counties, lost 12,400 private-sector jobs, or 2.7 percent. The non-farm job loss was 13,800, or 2.5 percent.

In Rochester, the unemployment rate was 8.1 percent in August, compared with 5.5 percent a year ago and 8.2 percent in July. In the past year that market has dropped 10,300 private-sector jobs, or 2.3 percent, while nonfarm jobs are down by 10,500, or 2.0 percent.

“Our latest labor market report indicates that employers in New York state cut jobs at a more modest pace than employers nationwide and our statewide unemployment rate remained below the nation’s rate. However, the number of unemployed New Yorkers in August reached its highest recorded level,” said a statement from Peter Neenan, Ph.D., Director of the Division of Research and Statistics.

Meanwhile, the monthly Spherion Employment Report, which measures worker confidence across New York state, reached a new high for 2009, increasing 8.9 points to 55.6 in August.

The New York Employee Confidence Index was buoyed by more workers feeling confident in the strength of the economy, as well as in their ability to find a new job.

The report noted:

28 percent of workers surveyed believe the economy is getting stronger, an increase of 12 percentage points from July.

52 percent are confident in their ability to find a new job, a 12-percentage-point increase from the previous month.

74 percent of workers are confident in the future of their current employer, an increase of seven percentage points from July.

The monthly survey of New York workers is conducted by Harris Interactive of Rochester on behalf of Spherion Corp.

- Business First of Buffalo

]]> 2248 2009-09-17 11:14:50 2009-09-17 18:14:50 open open ny-state-unemployment-at-16-year-high publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4020#comments wfw:commentRSS http://zikkir.com/business/4020/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4020 syndication_item_hash 391816d9f07068ab0a5b9762cab3a4fc Gophers stadium gets LEED certification http://www.ethiopianreview.com/business/2247 Thu, 17 Sep 2009 18:16:30 +0000 http://zikkir.com/business/?p=4023 TCF Bank Stadium, the University of Minnesota’s new on-campus football stadium, has been awarded LEED Silver Certification from the U.S. Green Building Council.

LEED, or Leadership in Energy and Environmental Design, is the nation’s leading program for the certification of green buildings.

Construction on TCF Bank Stadium began in July 2007 and was completed in July 2009. The Gophers football team played its first game at the 50,805-seat stadium on Sept. 12.

TCF Bank Stadium’s green features include:

* a storm water management system that allows rain water to be captured into a comprehensive underground filtering system outside the stadium, where it is harvested, filtered and drained into the Mississippi River;
* steel for the stadium is 90 percent recycled and was fabricated primarily in Minneapolis;
* a reflective roof to reduce heat island effect;
* paint, carpet, sealants and adhesives that are low in volatile organic compounds, which can aggravate health problems;
* 98 percent of the construction waste from the site was recycled;
* a 50 percent reduction in the use of potable water for landscape irrigation; and
* a 30 percent reduction in indoor potable water use.

“TCF Bank Stadium is an historic project for the university and it was important to us to do it right,” University of Minnesota President Robert Bruininks said in a statement. “This designation, in particular, underscores the commitment of the Board of Regents and the leadership of the university to principles of sustainability, energy conservation and responsible stewardship of our environment and our resources.”

The Minnesota Twins also plan to seek LEED certification for Target Field, their new ballpark that will open in 2010.

TCF Bank Stadium and Target Field were both designed by Kansas City, Mo.-based Populous (formerly HOK Sport Venue Event) and built by Golden Valley-based M.A. Mortenson Construction Co.

by John Vomhof Jr. | Minneapolis / St. Paul Business Journal

]]> 2247 2009-09-17 11:16:30 2009-09-17 18:16:30 open open gophers-stadium-gets-leed-certification publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4023#comments wfw:commentRSS http://zikkir.com/business/4023/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4023 syndication_item_hash 67ebb009926b2585853a10987f72594a ThunderCloud newest eatery at 360 tower http://www.ethiopianreview.com/business/2246 Thu, 17 Sep 2009 18:17:37 +0000 http://zikkir.com/business/?p=4026 The 360 condominiums downtown will soon see a new tenant, Austin-based ThunderCloud Subs. That location, as well as another ThunderCloud store planned at the Shops at Soco at 3600 South Congress Ave., will open later this year.

ThunderCloud will join other 360 condominium businesses that include Mulberry, Yummy Yo, Garridos and Royal Blue Grocery.

The 360 condominium location represents ThunderCloud’s 25th Austin-area store.

“It’s important for us to support local business as much as we can, and it’s clear that other people in Austin feel the same,” said ThunderCloud co-owner Patty Sughrue. “This kind of strong community attitude is truly part of our success.”

The Weitzman Group is handling the leasing of the retail space at 360.

- Austin Business Journal

]]> 2246 2009-09-17 11:17:37 2009-09-17 18:17:37 open open thundercloud-newest-eatery-at-360-tower publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4026#comments wfw:commentRSS http://zikkir.com/business/4026/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4026 syndication_item_hash 8bceb537686f0116a9a2673e7e6ec52e Inaugural food event to be held in Butler Township http://www.ethiopianreview.com/business/2245 Thu, 17 Sep 2009 18:18:21 +0000 http://zikkir.com/business/?p=4029 Corks and Forks, the region’s newest food, beer and wine tasting event, will be held in Butler Township this weekend.

On Sept. 20, from 1 p.m. to 4 p.m., tasters can grab a glass and a fork and sample more than 100 wines, Belgium beers and bite-size food from a number of local restaurants. The event will be held in York Commons, just west of Miller Lane.

Alex Kolodesh, owner of Cork and Vine Market & Lounge, said he’s hoping the event will raise money for charity, teach people a little about food and drink pairings, and be a good time. Corks and Forks will feature color-coded cards to show which wines and beers pair best with different food options.

All proceeds from the event will go to four different charities; Miami Valley Grown, the Blake LaForce Fund, Wahid Abdullah Memorial Fund and Reach Out of Montgomery County.

In addition to the drinks and grub, Corks and Forks will feature chef demonstrations, live music and a silent auction.

Some of the participating restaurants include The Buckhorn Tavern, The Caroline, Chin’s Ginger Grill, Dublin Pub and Thai 9.

Tickets for the event are $45 in advance and can be ordered online at corksandforks.org. Same-day admission is $55.

- Dayton Business Journal

]]> 2245 2009-09-17 11:18:21 2009-09-17 18:18:21 open open inaugural-food-event-to-be-held-in-butler-township publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4029#comments wfw:commentRSS http://zikkir.com/business/4029/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4029 syndication_item_hash e28bcfd5a62fc873066c6ee0c3a7ec64 A new high for Officer’s Choice http://www.ethiopianreview.com/business/2244 Thu, 17 Sep 2009 18:19:44 +0000 http://zikkir.com/business/?p=4032 Three years ago, Officer’s Choice was selling just five million cases a year and its market share was around 10 per cent in the regular whisky segment.

The growth since then has been phenomenal for the 20-year old brand of the Kishore Chhabria-owned Allied Blenders and Distillers (ABD). In July this year, Officer’s Choice became the 12th whisky brand in the world and the third in India to have sold 10-million cases a year. The two Indian brands are Bagpiper and McDowells No 1.

That’s not all. In the last three years, sales of the Officer’s Choice whisky have recorded a compounded annual growth rate (CAGR) of 33 per cent, which is almost double the 17 per cent growth achieved by the 120-million-cases whisky segment.

Its market share is now 19 per cent, much behind market leader Bagpiper, but Officer’s Choice has been able to widen the gap with other competitors. For instance, Radico Khaitan’s 8pm has lost market share from 10 per cent to 6.5 per cent and United Spirits’ Directors Special from 9 per cent to 8 per cent.

It’s also the No 1 brand in Rajasthan, Himachal Pradesh, Andhra Pradesh, West Bengal and Meghalaya. In Punjab and Jharkhand, it’s the second largest selling brand.

So what brought about this change? “Aggressive marketing, increased distribution, a new management team and a brand makeover,” says Deepak Roy who joined the company in October 2007 as its managing director, with five per cent equity stake.

The brand, which contributes close to 90 per cent of ABD’s overall volumes and close to 85 per cent of its Rs 850 crore revenues, went in for a makeover. It changed its positioning from “Challenge Yourself” to “Jagaiye apne andar ke officer” which targeted the growing aspirations of its new target market — the lower middle class consumer. “This positioning is different from the rest of the brands in the industry,” says Roopak Chaturvedi, an ex Pepsico and Marico professional who joined in October last year as head of marketing and sales.

The company increased the distribution reach by 50 per cent in the off-premise segment and doubled it in the on-premise (restaurants and hotel) segment.

The brand has also doubled its spends on sponsorships and associations. “Our marketing and promotion spends will be Rs 30 crore this year,” says Chaturvedi who also plans to launch a mass media campaign with its new Officer’s Choice water brand.

There is more. The company brought down the time of payments to suppliers from 90-150 days to the industry norm of 60-75 days. And despite the growing distribution reach, it brought down the customer service time from 10-30 days to within 48 hours.

- By Sapna Agarwal | Business Standard

]]> 2244 2009-09-17 11:19:44 2009-09-17 18:19:44 open open a-new-high-for-officer%e2%80%99s-choice publish 0 0 post wfw:commentRSS http://zikkir.com/business/4032/feed rss:comments http://zikkir.com/business/4032#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4032 syndication_item_hash 45edb94b4e13077950e15bff65c55c07 Tata Sky tunes in to the power of plus http://www.ethiopianreview.com/business/2243 Thu, 17 Sep 2009 18:20:48 +0000 http://zikkir.com/business/?p=4035 The second largest DTH player is way behind the market leader in subscriptions. But it is pushing value-added services to maintain its leadership in average revenue per user

Just a week back, Tata Sky did something which it has been avoiding so far – the company slashed prices of its value-added offering Tata Sky+ by almost 50 per cent to Rs 4,999.

Though a limited period Diwali offer till October 31, the move surprised many as the second largest Direct-To-Home (DTH) player by subscription has always been focused on the average revenue per user (ARPU) instead of just adding numbers.

That’s the reason why the 80:20 joint venture between the Tata group and Star TV has priced even its base service at a premium over its competitors. So while market leader Dish TV is way ahead with 5.7 million subscribers, Tata Sky and Sun Direct are tied in the second spot with 4 million subscribers each.

But analysts say Tata Sky’s ARPUs are 60 per cent higher than its competitors. So what explains the reasons for the Tata Sky+ price cut? Company executives say it’s a first anniversary gift (the personal video recorder service was launched a year ago) and is in keeping with the company’s strategy to shift as many existing base subscribers as possible to the value-added service so that ARPUs don’t suffer.

That focus is visible in its aggressive brand-building exercise for Tata Sky+. For example, the company has launched almost one creative a month in the last 10 months, all with actor Aamir Khan and Asin, the south Indian actress who is now a national ‘star’ following Gajni.

“The creatives were part of a campaign aimed at promoting the premium service. One of the major creatives was an Aamir Khan solo, where the benefits of the service were described, including the recording capabilities and interactive channels (like gaming, quizzing and kids’ programmes among others),” Tata Sky Chief Marketing Officer Vikram Mehra says.

Tata Sky+ offers a personal video recorder with over 45 hours of recording capabilities.

Prior to Asin, Tata Sky had signed up model Gul Panang who acted with Aamir Khan in a series of campaigns last year that highlighted the digital quality and technology of Tata Sky, with Aamir pausing a match to talk to his in-laws, while Gul Panang explained the technology. The campaigns made the jingle ‘isko laga dala toh life jinga la la’ almost like a national anthem. These creatives were made by Ogilvy & Mather (O&M).

Down south, the Asin magic worked. In one of the ads, she calls up a Tata Sky call centre seeking a replacement for her maid, ‘Kupamma’. The campaign drives home the point that the company replaces set-top boxes during the guarantee period.

Quoting a AC Nielson study, Mehra says that Tata Sky has a “loyal customer” base as users feel the company has met expectations. “We deliver what we promise, and we don’t promise what we cannot deliver,” Mehra adds.

Mehra says Tata Sky has 12 transponders (capacity on a satellite) that permits it to broadcast over 180 channels, compared with just 7-9 transponders of other players.

Industry analysts admit that Tata Sky campaigns have done wonders to boost its premium image, but are quick to add that the industry itself has been growing at a rapid pace and even new entrants like Big TV and Airtel have garnered over a million subscribers already.

Tata Sky also had its part of misses. Not partnering for the Indian Premier League (IPL) last year was a big miss, admits Mehra, adding the company launched ad campaigns 20 days before IPL to make good the loss.

There are other ways too for brand building. Bombay Scottish School, for example, is one among the 850 institutions that uses Tata Sky’s DTH services in classrooms. The company has offered its connection free of cost under what it calls a social responsibility exercise.

But social responsibility and brand promotion can often go well together.

- By Rajesh Kurup | Business Standard

]]> 2243 2009-09-17 11:20:48 2009-09-17 18:20:48 open open tata-sky-tunes-in-to-the-power-of-plus publish 0 0 post syndication_item_hash ef15f2b16fc333c2603f6c22490759cf syndication_permalink http://zikkir.com/business/4035 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4035/feed rss:comments http://zikkir.com/business/4035#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Biyani eyes new revenue streams http://www.ethiopianreview.com/business/2242 Thu, 17 Sep 2009 18:21:50 +0000 http://zikkir.com/business/?p=4038 Future Group to get into talk time sales, invest in food companies, launch commodity brand.

Future Group Founder & CEO Kishore Biyani wants to take his pet theme of “collaboration” to the next level for a greater share of the consumer’s wallet.

The group, which owns big retail chains such as Pantaloon and Big Bazaar, will tie up with telephone operators to sell talk time at its outlets, buy stakes in food processing units and mills for backward integration of its foods business. The group will also launch a new commodity brand called “Ekta”.

“Players in the industry need to understand that you can’t do everything yourself, so collaboration is critical,” Biyani said at the India Retail Forum here today. The new moves, said group officials, would go a long way in achieving the revenue target of Rs 25,000 crore in the next four years.

The group’s plans to buy talk time in bulk from telephone operators and sell SIM cards and recharge vouchers in its stores are expected to be in place by early next year and co-branding options with mobile phone operators were being explored, Biyani said.

The Future Group runs over 1,100 stores in the country. Sources familiar with the developments said Future was in talks with Tata Tele Services for a franchisee agreement and was set to sign a deal soon. Biyani, however, denied this.

Future already has a tie-up with UAE-based Axiom Telecom to sell mobile phones and accessories in the country, for which it plans to set up 1,500 outlets. The group expected business of Rs 80 crore a month after 24 months from selling talk time to shoppers, Biyani said.

Food processing: In a backward integration move in its foods business, the group will buy equity in food processing units and mills in areas such as Indore and Nagpur, Biyani said. Currently, 30 to 35 per cent of its food and grocery revenues come from its private labels and the group believes this share could rise to 50 per cent in the next couple of years.

“We are looking at building capacities in the entire value chain. We have entered the fashion value chain there and now we are looking at farm produce in a similar way,” Biyani said.

Nearly 80 per cent of apparel sold in Future group stores comes from units owned by the group in places such as Tarapore near Mumbai. The group was planning to replicate that in the food and grocery businesses, a group official said.

The group was leveraging the capacities of its rural retailing arm, Future Agrovet, to source fresh produce from farmers, he said.

New brand: The group’s new commodity brand, Ekta, will cover for popular items such as gram flour (besan) and beaten rice (poha), among others, Biyani said. Initially, the brand will cover 35 products, going up to 100 products in the next couple of months.

Future is also planning to set up print shops in the country that will offer services to print visiting cards, wedding invitations and so on. Future Group has a stake in design firm Idiom. The group was also setting up a BPO to take care of the back-end needs of this venture, Biyani said.

Fund raising plans: Future Group’s venture capital arm, Future Venture, plans a Rs 1,200 crore public issue by March 2010, Biyani said. The group is also looking at raising Rs 1,000 crore by selling its non-core retail assets in the country. Biyani, however, declined to name the assets that the group is planning to sell.

- BS Reporter

]]> 2242 2009-09-17 11:21:50 2009-09-17 18:21:50 open open biyani-eyes-new-revenue-streams publish 0 0 post syndication_item_hash ded51e7c8be4df6da3c6dec2163b9f70 syndication_permalink http://zikkir.com/business/4038 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4038/feed rss:comments http://zikkir.com/business/4038#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Kaushik Basu tipped for CEA’s post http://www.ethiopianreview.com/business/2241 Thu, 17 Sep 2009 18:24:05 +0000 http://zikkir.com/business/?p=4041 2241 2009-09-17 11:24:05 2009-09-17 18:24:05 open open kaushik-basu-tipped-for-cea%e2%80%99s-post publish 0 0 post syndication_item_hash 8ae85be9e26a4bfe900ca6fef86639ae syndication_permalink http://zikkir.com/business/4041 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4041/feed rss:comments http://zikkir.com/business/4041#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir India Inc settles for smaller M&A deals http://www.ethiopianreview.com/business/2240 Thu, 17 Sep 2009 18:25:08 +0000 http://zikkir.com/business/?p=4044 ICICI Bank’s Global Head (Investment Banking) Kalpesh Kikani says the time for multi-billion dollar deals is over. “India Inc’s appetite for large deals has gone down. In any case, financing such deals would be tough,” he says.

Kikani should know; his bank achieved the highest $434 million value of deals in the mid-size segment in the first half of 2009.

M&As are back on the radar for Indian companies, but with two vital changes. First, the average size of the deals are much smaller compared to the earlier years; and second, overseas acquisitions have taken a backseat.

In July and August this year, for example, Indian companies were involved in 34 domestic deals worth $543 million, with an average size of just $16 million. Outbound deals have shrunk to $90 million against $4.9 billion in the corresponding period of the previous year, according to data provided by Grant Thornton.

Consider the Tata Group, which set a scorching pace on acquisitions in 2007 and 2008 — the $12.2 billion Corus deal happened in 2007 and the $2.3 billion Jaguar Land Rover deal in 2008. In 2009, the group’s only acquisition is that of Sea Rock hotel in Mumbai by its group company, Indian Hotels, for Rs 680 crore ($142 million).

Experts see many reasons that deal sizes and overseas acquisitions have fallen drastically. The big boost to overseas acquisitions by Indian companies was access to easy credit from banks before the credit crisis.

“We are coming from an era of excesses when leveraging norms went for a six,” says Saurabh Agrawal, managing director and head of investment bank at DSP Merrill Lynch. Companies leveraged their balance sheet seven to eight times of the operating profit as there was excess liquidity available in the system at that point of time, explained Agrawal.

Now with banks getting cautious, leveraging levels have come down. This has led companies to using their internal accruals. So large-tickets deals such as the proposed $ 23 billion Bharti Airtel and MTN deal can only be an exception now.

“Risk management has become more important now,” says B R Jaju, who as chief financial officer was involved in many acquisitions by Crompton Greaves in the last couple of years. One of those included French company Sonomatra in 2008. He moved out of the company this month to join Welspun Gujarat as director and chief financial officer. “We can’t expect the earlier aggression for large-size deals at least for the next one year,” he says.

Experts say most of the acquisitions by Indian companies in the past were heavily leveraged and now a majority of these predators are struggling to service the loans for acquisitions. The big Indian companies now realise that it is not easy to integrate large facilities bought from outside owing to serious cultural and regulatory issues in moving production to India.

Instead, domestic companies are looking at lower-risk risk small acquisitions like the recent deals of Lupin and brand buy-outs to boost business.

Sujay Shetty, associate director of PricewaterhouseCoopers, says “Now, large loans for acquisitions have dried up for Indian companies. Thankfully, wisdom prevails in most boardrooms than simply jumping into acquisitions without proper homework.”

- By Abhineet Kumar | Business Standard

]]> 2240 2009-09-17 11:25:08 2009-09-17 18:25:08 open open india-inc-settles-for-smaller-ma-deals publish 0 0 post syndication_item_hash cb0232c92e328a988f5d341188824082 syndication_permalink http://zikkir.com/business/4044 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4044/feed rss:comments http://zikkir.com/business/4044#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir ABSA fails to find many takers http://www.ethiopianreview.com/business/2239 Thu, 17 Sep 2009 18:29:34 +0000 http://zikkir.com/business/?p=4048 Under the system, an investor’s money leaves his bank account only on allocation of shares.

The Securities and Exchange Board of India’s (Sebi’s) move to start a system for initial public offers (IPOs) under which an investor’s money leaves his bank account only on allocation of shares has failed to find many takers.

The application supported by blocked amount (ABSA) system was started as a retail investor-friendly move. However, if the number of applications under the new mechanism in the recent IPOs is any indication, it has failed to attract investor interest. In the recently-concluded Oil India IPO, only 8 per cent retail applications came through the new system, which was introduced after complaints of pile-up of IPO refunds.

The IPO market had become virtually dead after Sebi announced the new guidelines. In the global meltdown that started last year, there were only a few small companies that tapped the primary market. Hence, ASBA’s practicality could not be tested.

However, even after the primary market revived and a few issues tasted stellar subscription figures, the system has not become popular with retail investors. Mahindra Holidays was the first IPO to hit the market after a lull of four months. While the retail portion was subscribed 3.36 times, just 2.5 per cent of the total retail subscription was through the ASBA route.

“The response has not been good. A number of investors are still not aware of this mode of application. Brokers are also not pushing it because of lack of incentive. But it will pick up over time,” said an investment banker who did not wish to be named.

In the NHPC IPO, only 11 per cent retail investors applied through this route, even as the retail category was subscribed 3.9 times. In case of Adani Power, only 10 per cent applications come through this route.

“There are a lot of operational hassle involved in investing through the ASBA system. Since the average value of applications has gone down, it does not make sense for retail investors to incur an extra cost in terms of logistics to go for this method. Banks have not been pushing for it actively since they are not IPO distributors traditionally,” said Maju Nair, head of distribution at Sharekhan.

Recently, Sebi asked all merchant bankers to ensure that banks are paid a commission for the service rendered. However, there is a tussle going on between brokers and banks on sharing of the commission.

- By Vandana | Business Standard

]]> 2239 2009-09-17 11:29:34 2009-09-17 18:29:34 open open absa-fails-to-find-many-takers publish 0 0 post syndication_item_hash 3f2028e592f4d606897e4a43fe32505b syndication_permalink http://zikkir.com/business/4048 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4048/feed rss:comments http://zikkir.com/business/4048#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Nifty likely to trade at 4,800-4,900 in near term http://www.ethiopianreview.com/business/2238 Thu, 17 Sep 2009 18:30:55 +0000 http://zikkir.com/business/?p=4051 Both the benchmark indices, the Sensex and the Nifty, are now technically trading near their immediate resistance levels of 16,700 and 5,000, respectively. Though valuations at the current level are stretched, a steady rise in liquidity in the market is fuelling the rally.

According to Gautam Shah, technical analyst at JM Financial, the short-term top is still far away as the market has broken out of a consolidation phase only a few days ago. However, Siddhartha Bhamre, derivative and equity analyst, suggests that the long traders should book profits at the current levels as this is a liquidity-driven market.

Nevertheless, the Nifty October futures today witnessed fresh rollovers as it added an open interest (OI) of 779,000 shares out of the day’s trading volume of 1.62 million shares. The Nifty September futures witnessed profit-booking as it shed 146,250 shares in OI despite an intra-day build-up of 1.62 million shares.

Unwinding in the call options was seen at 4,700 and 4,800 calls, while change of hands was noticed at the 4,800 and 4,900 call options. This means call writers are buying in-the-money and at-the-money positions as they are expecting the Nifty to trade around 4,800-4,900 in the near future.

The Nifty today gained 60 points and is now only 42 points away from its upside target level of 5,000. The trading volume in the Nifty futures and options (F&O) remained subdued because of lack of speculative interest and the gap-up opening. The stock futures witnessed a 20 per cent jump in volumes mostly due to short-covering and profit-booking.

However, the thin volume in the derivatives segment means traders are wary of taking either side positions at the current levels. The Nifty today rose 1.36 per cent to its highest close in almost 16 months, backed by gains in Tata Steel, SAIL, Tata Motors, Hindalco, Punjab National Bank and State Bank of India. The FII and DII indices compiled by Instanex Capital underperformed the benchmark indices, indicating that both foreign and domestic investors booked profit in the stocks of index heavyweights such as Reliance Industries and HDFC.

- By B G Shirsat | Business Standard

]]> 2238 2009-09-17 11:30:55 2009-09-17 18:30:55 open open nifty-likely-to-trade-at-4800-4900-in-near-term publish 0 0 post syndication_item_hash 54788ea8269e6b685ace3ec13be45e32 syndication_permalink http://zikkir.com/business/4051 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4051/feed rss:comments http://zikkir.com/business/4051#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Star Tribune to emerge from bankruptcy, no new publisher named http://www.ethiopianreview.com/business/2324 Thu, 17 Sep 2009 18:46:04 +0000 http://zikkir.com/business/?p=4057 A federal bankruptcy judge on Thursday approved a plan for the Minneapolis Star Tribune to exit Chapter 11 bankruptcy later this month. But owners of the Minneapolis paper haven’t named a CEO or publisher yet.

The plan, approved in U.S. Bankruptcy Court for the Southern District of New York, has the Star Tribune emerging from bankruptcy on or around Sept. 28. The paper’s senior secured lenders will hold approximately 95 percent of the stock to be issued by the post-bankruptcy company. The company’s debt will be $100 million, down from $480 million at the time of its filing.

The newspaper’s current ownership group, led by New York-based Avista Capital Partners, will not have a stake in the company. Nor will the paper’s CEO and publisher Chris Harte remain.

Unsecured creditors sought to get the new owners to name a publisher before final approval of the bankruptcy plan, but U.S. Bankruptcy Judge Robert Drain turned down the request.

Angelo Gordon & Co., a New York-based private equity firm that seeks “alternative investing” opportunities among distressed companies, has been leading the group of new owners. Other new owners include Wayzata Investment Partners in Wayzata; investment bank Swiss financial-services company Credit Suisse; Salt Lake City-based CIT Bank; and an affiliate of GE Capital, General Electric Co.’s financing unit.

The Star Tribune filed for bankruptcy protection on Jan. 15, citing assets of $493.2 million and liabilities of $661.1 million. Its reorganization plan, filed in June, was approved by the bankruptcy court in July.

- by Chris Newmarker | Minneapolis / St. Paul Business Journal

]]> 2324 2009-09-17 11:46:04 2009-09-17 18:46:04 open open star-tribune-to-emerge-from-bankruptcy-no-new-publisher-named publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4057#comments wfw:commentRSS http://zikkir.com/business/4057/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4057 syndication_item_hash dcf5b3fa74490c4edec9fdec48dc98d4 GM helps American Axle restructure debt http://www.ethiopianreview.com/business/2323 Thu, 17 Sep 2009 18:47:16 +0000 http://zikkir.com/business/?p=4060 American Axle & Manufacturing Holdings Inc. said Thursday that a deal was reached with lenders to restructure its debt and that General Motors had agreed to provide substantial financial help.

The struggling Detroit-based auto supplier, which has a small machining operation in Cheektowaga, said the agreement likely enabled it to avoid having to file for Chapter 11 bankruptcy protection.

In connection with the agreement, American Axle received a $110 million payment from GM related to contracts predating GM’s own June 1 Chapter 11 filing. The company emerged from bankruptcy protection in July.

The Detroit-based automaker also will extend a loan to American Axle of up to $100 million.

- by Thomas Hartley | Business First of Buffalo

]]> 2323 2009-09-17 11:47:16 2009-09-17 18:47:16 open open gm-helps-american-axle-restructure-debt publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4060#comments wfw:commentRSS http://zikkir.com/business/4060/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4060 syndication_item_hash 5374efdf1759e58a92f9ab863df9f2dc Texas Comptroller begins school district fund evaluation http://www.ethiopianreview.com/business/2322 Thu, 17 Sep 2009 18:48:21 +0000 http://zikkir.com/business/?p=4063 Texas Comptroller Susan Combs is initiating a study of how school districts allocate their resources to help districts make the best use of their public education dollars.

“Public education spending will continue to grow as our population increases and as state policymakers recognize the important role our schools play in preparing the work force necessary for a strong economy,” Combs said. “This study will be a complete analysis of what schools are spending and their academic outcomes.”

The study will be conducted with input from the Education Research Center at the University of Texas–Dallas, the University of Texas at Austin and Texas A&M University’s Bush School of Government and Public Service. The Texas Education Agency, the Texas Higher Education Coordinating Board, school superintendents, outside experts and other education stakeholders will also contribute to the study.

Combs said school districts will have access to the study results via a free Web site.

The study is part of House Bill 3 passed by the Texas Legislature that calls for the comptroller’s office to evaluate existing academic accountability and financial data, rank the results of the evaluation to identify the relative performance of districts and campuses, and identify potential areas for district and campus improvement. The legislation also requires the comptroller to evaluate the operating cost for each student, the operating cost for each program and the staffing cost for each student.

The comptroller’s office expects the study to be completed by the end of 2010.

- Houston Business Journal

]]> 2322 2009-09-17 11:48:21 2009-09-17 18:48:21 open open texas-comptroller-begins-school-district-fund-evaluation publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4063#comments wfw:commentRSS http://zikkir.com/business/4063/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4063 syndication_item_hash 108911bf8eebc93ad7a66ff40e400991 Cincinnati State sets record for enrollment http://www.ethiopianreview.com/business/2321 Thu, 17 Sep 2009 18:49:23 +0000 http://zikkir.com/business/?p=4066 Cincinnati State Technical and Community College said Thursday that its enrollment has reached an all-time record – up 23.5 percent over last year.

The college said in a news release that enrollment for its 2009 early fall term is 10,056, compared to 8,145 in the same 2008 term.

Enrollment has been rising over the last several terms: it was up 32 percent year over year in the summer term, and up 9 percent in the spring term.

“It’s encouraging to see so many men and women pursuing the education and training they need to succeed in today’s economy,” said Robert Henderson, interim president, in the release.

Cincinnati State has hired more part-time instructors to handle the increased load and is scheduling more evening and day classes, he said.

But if enrollment continues to rise, that “will soon challenge the college’s physical and operational resources,” he said.

Broken down by age group, enrollment rose 33 percent among students ages 19-22, 18 percent among those ages 25-29, 17 percent for those ages 30-39, and 9 percent for those ages 40-49, the college said.

Cincinnati State offers more than 75 associate degree programs and 40 certificate programs, as well as an extensive co-op program.

- Business Courier of Cincinnati

]]> 2321 2009-09-17 11:49:23 2009-09-17 18:49:23 open open cincinnati-state-sets-record-for-enrollment publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4066#comments wfw:commentRSS http://zikkir.com/business/4066/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4066 syndication_item_hash fd8ea99f1d0b84c22a05c079def088be NTS to develop building at U of L’s ShelbyHurst park http://www.ethiopianreview.com/business/2320 Thu, 17 Sep 2009 18:50:37 +0000 http://zikkir.com/business/?p=4069 University of Louisville officials have tapped NTS Corp. to develop a new office building on the former Shelby Campus — an initial step in a long-range plan to transform part of the property into a business and research park.

NTS was selected for the project by the University of Louisville Foundation after a request for qualifications process. The Louisville company has developed and/or operated more than 7 million square feet of commercial and residential space across the Midwest and Southeast.

NTS was introduced as the initial developer in what has been renamed the ShelbyHurst Research and Office Park during a news conference at the campus on Thursday.

Seven companies responded to the RFQ, which was initiated in December, according to university officials. The firms that were not selected were not identified.

The U of L Foundation leases the campus from the university and created an affiliate, U of L Development Co. LLC, to be the master developer of the commercial part of ShelbyHurst.
Financial strength ‘guaranteed’

U of L president James Ramsey said in an interview that NTS was chosen “because of experience, because of their track record” and because the firm guaranteed it could provide financing for the project.

“We wanted to make sure that the financial strength of our partner was guaranteed,” he explained.

Under terms of its agreement with the U of L Foundation, NTS must build an office building of about 100,000 square feet on about half of an 8.3-acre tract at Hurstbourne Parkway and Porter Place, north of Shelbyville Road.

Work must begin by May 1, 2010, and the building’s shell must be finished by April 1, 2011, according to U of L officials. The entire building is expected to be completed by the third quarter of 2011.

- by John R. Karman | Business First of Louisville

]]> 2320 2009-09-17 11:50:37 2009-09-17 18:50:37 open open nts-to-develop-building-at-u-of-l%e2%80%99s-shelbyhurst-park publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4069#comments wfw:commentRSS http://zikkir.com/business/4069/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4069 syndication_item_hash 820885b6222aee42ca0387d00de9a91c Project to create 4,400 Menlo Park jobs http://www.ethiopianreview.com/business/2319 Thu, 17 Sep 2009 18:51:25 +0000 http://zikkir.com/business/?p=4072 The Bohannon Development Company and JobTrain on Thursday announced an agreement that will make about 4,400 jobs available in Menlo Park.

JobTrain, a Menlo Park-based educational and training institution, said some of the new jobs created by the Menlo Gateway project will be available to its clients first.

Menlo Gateway is expected to create approximately 1,900 construction jobs. It also will create more than 2,300 permanent jobs, with more than 200 hospitality jobs at the Renaissance ClubSport facility.

JobTrain said its computer service technician, culinary arts, office skills, project build and solar training programs will ready graduates to fill both temporary and permanent jobs created by the Menlo Gateway project in construction, hotel, fitness, restaurant and office positions.

Menlo Gateway is a proposed combined hotel, fitness club, office, and open space project on industrial land in Menlo Park east of Highway 101. The project will aim for achieving LEED certification and is expected to put more than $1.6 million annually to the city’s general fund and property tax rolls.

The project is slated for a Menlo Park City Council vote early in 2010.

- Silicon Valley / San Jose Business Journal

]]> 2319 2009-09-17 11:51:25 2009-09-17 18:51:25 open open project-to-create-4400-menlo-park-jobs publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4072#comments wfw:commentRSS http://zikkir.com/business/4072/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4072 syndication_item_hash 629515bf830cb17c21c275733d1791b6 Mass. AG Coakley sues Acton developers http://www.ethiopianreview.com/business/2318 Thu, 17 Sep 2009 18:52:30 +0000 http://zikkir.com/business/?p=4075 The Massachusetts attorney general’s office is suing a development company for allegedly fudging cost and profit statements related to an affordable housing development in Acton, Mass.

The developer, Crossroads Development LLC in Acton, built a 12-unit affordable housing complex on Main Street in Acton called Crossroads. The attorney general’s office filed a complaint in Middlesex Superior Court alleging that the defendents — Crossroads principals James Fenton and Michael Jeanson as well as the project’s contractor, James Fenton & Son Contracting Inc. — submitted a false cost certification to the town of Acton in connection with the development. As a result, Attorney General Martha Coakley alleges the developers concealed a large sum of money owed to the town’s affordable housing fund.

The state’s affordable housing law allows towns to waive zoning and other local ordinances if developers pledge to build affordable housing and make a limited profit. Crossroads and the town agreed to cap the developer’s profit at 20 percent of the development costs. Any profit the developer earned above 20 percent was to be given to the town for the affordable housing fund, according to the attorney general.

The AG’s office said Crossroads reported costs for services not actually incurred and inflated costs on the project in order to pocket profits and circumvent the 20 percent profit cap allowed under the state’s affordable housing law. The defendants claimed they earned less than a 20 percent development profit, when actual profit was much higher, the attorney general alleges.

The project’s cost was $2.7 million, with the developers’ profit capped at $530,400.

Jeanson and Fenton allegedly exceeded the 20 percent profit cap by adding an additional 10 percent surcharge through the contractor owned by Fenton. None of the excess charges were disclosed.

The attorney general also alleges the defendants sold one of the condominiums to an entity they owned at a price lower than market value and then promptly resold the unit at market rate, making $50,000 on the resale. The developers fraudulently concealed this profit, the AG’s office said.

Coakley’s office began investigating Crossroads last fall. The attorney general’s office is seeking to recover the extra profits the developer pocketed as well as damages and fines.

- by Michelle Hillman | Boston Business Journal

]]> 2318 2009-09-17 11:52:30 2009-09-17 18:52:30 open open mass-ag-coakley-sues-acton-developers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4075#comments wfw:commentRSS http://zikkir.com/business/4075/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4075 syndication_item_hash 759ee70bfaea2b807f0bbba876de28a1 N.Y. state coffers coming up short http://www.ethiopianreview.com/business/2317 Thu, 17 Sep 2009 18:53:28 +0000 http://zikkir.com/business/?p=4078 Total revenue collections for New York state continued to fall short of projections in August, said a report issued Thursday from Comptroller Thomas DiNapoli.

The comptroller’s office said that total General Fund tax revenue of $13.8 billion — $238 million below updated projections. Year-to-date General Fund personal income tax collections of $8.8 billion remain $113.8 million lower than anticipated through August. Also, though business tax collections of $1.4 billion were $204.9 million ahead of last year, those receipts are still $57.6 million below projections.

DiNapoli took aim at the state Legislature, saying tough choices on spending could have been made during the spring budget process.

“Avoiding those choices has made the state’s fiscal condition even more challenging. September’s collections are typically more indicative of economic conditions, but last month’s results clearly indicate that we are not out of the woods yet,” he said. “Current cash flow projections show very little room for additional revenue shortfalls and every month that ends with a greater than anticipated shortfall only makes things worse down the road.”

- Business First of Buffalo

]]> 2317 2009-09-17 11:53:28 2009-09-17 18:53:28 open open n-y-state-coffers-coming-up-short publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4078#comments wfw:commentRSS http://zikkir.com/business/4078/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4078 syndication_item_hash 6897cf969c19b50179415d392861773a Economist sees strong chance of ‘double-dip recession’ http://www.ethiopianreview.com/business/2316 Thu, 17 Sep 2009 18:54:44 +0000 http://zikkir.com/business/?p=4081 Although the global economy is showing signs of bouncing back, the recovery may be temporary, a senior economist for the Economist Intelligence Unit told members of the World Trade Center Denver on Thursday.

“There is a very strong chance of a double-dip recession” in the United States, said Leila Butt, senior editor and senior economist in the East European department of the Economist Intelligence Unit’s (EIU) Country Analysis and Forecasting division.

“Things could be much worse in 2011 than we currently expect, which is when all these stimulus measures run out,” Butt added.

EIU is a subsidiary of London-based The Economist Group, which publishes The Economist magazine. The EIU made its presentation at the World Trade Center Denver’s annual meeting, held at the offices of Holme Roberts & Owen LLP in downtown Denver.

U.S. growth is expected to decline 2.3 percent this year and rise 1.7 percent in 2010, Butt said. But growth will decelerate to 1.2 percent in 2011.

Most of the U.S. recovery in the second half of 2009 and first half of 2010 will be due to businesses’ need to restock following a freeze on capital investment over the past year. But that won’t last, Butt said.

“You are going to get a recovery in U.S. growth in the second half of this year and into 2010, simply because of this restocking … but that’s going to peter out, as is the fiscal stimulus package, and businesses are going to be under much more pressure than in the past as well, not just because of the financial sector but because U.S. consumer demand is going to be much lower than in the past. Businesses are going to be focusing more on cost-cutting rather than raising production,” Butt said.

Consumer spending accounts for 70 percent of U.S. gross domestic product, but high debt and job losses will keep consumers from spending as much in the next few years as they have in the past, Butt said.

Rising government budget deficits also create the possibility of what Butt characterized as an unlikely, but worrisome, possibility: that emerging countries will stop buying U.S. securities, causing the U.S. dollar’s value to collapse.

Last spring, U.S. credit rating agency Standard & Poor’s cut its outlook for Britain’s sovereign rating to negative, citing its high debt levels, raising the possibility that the country might lose its top-tier AAA rating.

It would have a big impact on the economy if the same thing were to happen to the United States’ credit rating, Butt said.

- by Renee McGaw | Denver Business Journal

]]> 2316 2009-09-17 11:54:44 2009-09-17 18:54:44 open open economist-sees-strong-chance-of-%e2%80%98double-dip-recession%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4081#comments wfw:commentRSS http://zikkir.com/business/4081/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4081 syndication_item_hash 65226635cc526d40ab47e8ff7e19ca94 General Assembly’s fiscal forecaster foresees ‘another jobless recovery’ http://www.ethiopianreview.com/business/2315 Thu, 17 Sep 2009 18:56:14 +0000 http://zikkir.com/business/?p=4084 Rays of sunshine might be peaking through the economic storm clouds, but General Assembly fiscal researcher Barry Boardman is forecasting only limited growth over the next four to six quarters.

“The latest expectations are that the recession is over, but it will continue to feel like we are still in a recession,” Boardman writes in a September 2009 forecast released this week.

As signs of recovery, Boardman points to various studies by the Federal Reserve Bank and others showing an improvement in manufacturing orders. Additionally, he adds, increased government spending has been having some short-term beneficial effects.

Yet, he says, “employment has yet to respond to the improvement, though layoff announcements are fewer and monthly job losses are smaller than they were a few months ago.”

Recovery, he adds, will depend in large part on the return of consumer demand, which has been battered by tight credit, the “destruction of household nest eggs,” unemployment and concerns over job security.

“Coming out of the 1981-82 recession, economic growth was at 6 percent, nearly twice the long-term rate. This time around, weak consumer demand will undercut the potential for a robust recovery,” Boardman writes, adding that the state’s unemployment picture “will remain bleak as yet another jobless recovery takes hold.”

Employment in the state’s traditional manufacturing sectors such as textiles and furniture will be very slow to recover, Boardman says. However, “new economy” industries like high-tech manufacturing and research-based industries “may help lead the state to a recovery,“ he concludes.

- by Lee Weisbecker | Triangle Business Journal

]]> 2315 2009-09-17 11:56:14 2009-09-17 18:56:14 open open general-assembly%e2%80%99s-fiscal-forecaster-foresees-%e2%80%98another-jobless-recovery%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4084#comments wfw:commentRSS http://zikkir.com/business/4084/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4084 syndication_item_hash 46edccce3be93c5a8f43b45552a12429 Albany unemployment, job losses still at record highs http://www.ethiopianreview.com/business/2314 Thu, 17 Sep 2009 18:57:44 +0000 http://zikkir.com/business/?p=4087 The rates of unemployment and private-sector job losses remain at record-highs in the Albany, N.Y., area, according to data published today.

The Albany-Schenectady-Troy metro area had a net loss of 9,500 private-sector jobs from August 2008 to August 2009, the state Department of Labor reported. That’s an over-year decline of 2.7 percent, just behind the pace of private-sector job losses statewide.

Unemployment is 7 percent—the highest on record for August, and more than 2 percent above a year ago.

Data are not adjusted for seasonal variances. Unemployment numbers do not account for people who have given up looking for work, or those who are underemployed as part-time workers.

Rapid over-the-year growth in local government employment—a leap of 2,000 jobs—masks deeper problems in the local economy, said James Ross. He analyzes the Capital Region for the state Labor Department.

“The local government numbers make the data look too good. It hides the continuing problems,” Ross said, noting that education supplies the bulk of local government jobs.

“We’ll see those numbers back down in September,” he added. “And the private sector continues to get worse.”

The good news: The Albany area’s unemployment remains far below statewide and national levels (8.8 percent and 9.6 percent, respectively). Also, the area is losing jobs at a slower rate than the entire state and the U.S.

When adjusted for seasonal variances, New York’s unemployment rate is the highest it has been since 1983. More than 874,000 New Yorkers were unemployed in August—a record high since data was first measured 33 years ago.

In the Albany area, health care remained the strongest part of the private sector. The area had a net gain of 1,100 health care jobs over the past 12 months, an increase of 1.9 percent.

Scientific and technical jobs rose by 100 positions, a gain of 0.3 percent.

Otherwise, a variety of sectors continued to decline:

• Manufacturing had a net loss of 1,400 jobs, a 6.2 percent drop

• The trade, transportation and utilities sector shed 2,300 jobs, a 3 percent decline

• Leisure and hospitality lost 1,800 jobs, a drop of 4.9 percent

• The area lost 400 management positions, a 5.6 percent decline

• State government shed 1,800 jobs, a 3.4 percent drop

“It’s not any one industry suddenly dropping. It’s across the board,” Ross said.

The gains and losses mirror what the Albany area has experienced in previous months. Ross said to expect more mixed reports the rest of this year, and into next year as well.

“It will probably be at least six more months before there will be improvements in the labor market,” he said. “We may not see as much deterioration, but we won’t see improvements. And there’s a real danger that in the beginning of next year, it may sink again.”

Ross emphasized that the local economy is still fairing better than the state and national ones. For instance, the rate of job losses from manufacturers in Albany is half the national rate.

Also, activity in the state Labor Department’s job bank is showing “slow gains” compared with a year ago, Ross said. Part of that rise can be attributed to the department’s stronger efforts to market the database to employers and workers alike.

“Still, they’re up enough that it’s indicative there may be some improvements coming down the road,” Ross said. “Whether it’s enough to soon change the direction of job trends, it’s hard to say.”

Here’s how other metro areas around the state are doing:

• Glens Falls had a net loss of 2,500 private-sector jobs, a 5.1 percent decline. Unemployment is 6.8 percent, the highest since August 1992

• Buffalo lost 12,400 private-sector jobs, a 2.7 percent drop. Unemployment is 8.4 percent, almost 3 percent higher than a year ago

• The five boroughs in New York City lost 96,600 private-sector jobs, a 3 percent decline. Unemployment is 10.3 percent, more than 4 percent above a year ago

• Rochester lost 10,300 private-sector jobs, a 2.3 percent drop. Unemployment is 8.1 percent.

• Syracuse lost 6,800 private-sector jobs, a 2.5 percent decline. Unemployment is 7.9 percent.

- by Adam Sichko | The Business Review (Albany)

]]> 2314 2009-09-17 11:57:44 2009-09-17 18:57:44 open open albany-unemployment-job-losses-still-at-record-highs publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4087#comments wfw:commentRSS http://zikkir.com/business/4087/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4087 syndication_item_hash cc2b81384ad1209ab82fa93901e82300 Ky. jobless rate unchanged in August http://www.ethiopianreview.com/business/2313 Thu, 17 Sep 2009 18:59:15 +0000 http://zikkir.com/business/?p=4090 Kentucky’s unemployment rate stayed stable, at 11.1 percent, from July to August, the state’s Office of Employment and Training said Thursday.

The rate is up from the 6.7 percent recorded in August 2008, the office said in a news release.

“The Kentucky economy showed some signs of stabilization in August 2009, with average weekly hours of production workers rising and the temporary help industry experiencing an uptick in employment,” said Justine Detzel, chief labor market analyst for the office. But the number of long-term unemployed indicates that “the recession is far from over,” she said.

Of the 11 business segments Kentucky records, five added jobs: professional and business services, 2,300; leisure and hospitality, 2,300; trade, transportation and utilities, 800; financial activities, 400; and mining and logging, 200.

Five segments lost jobs during August: manufacturing, 3,200; construction, 1,200; educational and health services, 1,100, other services, 800; and information, 100. The government sector was unchanged from July to August.

The U.S. unemployment rate was 9.7 percent in August, up from 9.4 percent in July, according to the news release.

- Business Courier of Cincinnati

]]> 2313 2009-09-17 11:59:15 2009-09-17 18:59:15 open open ky-jobless-rate-unchanged-in-august publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4090#comments wfw:commentRSS http://zikkir.com/business/4090/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4090 syndication_item_hash 25526ebd7b984d780173d426b6b9a22a Security Financial agrees to make operating improvements http://www.ethiopianreview.com/business/2312 Thu, 17 Sep 2009 19:00:33 +0000 http://zikkir.com/business/?p=4093 Security Financial Services Corp., the holding company for Security Financial Bank in Durand, must meet financial performance and reporting guidelines and maintain sufficient capital under an agreement reached with the Federal Reserve Board and the Wisconsin Department of Financial Institutions.

The Federal Reserve on Thursday announced that Security Financial, which has assets of $327.6 million, compared with $336.9 million a year ago, has agreed to take numerous steps to solidify its financial position and controls. The bank recorded a net income of $1.7 million for the quarter ending June 30, compared with a net income of $2.5 million a year earlier.

Among the requirements of the agreement are that Security Financial Services must submit a capital plan “that details the steps Security and the bank will take to increase the bank’s capital ratios to or above the approved plan’s minimums,” the Federal Reserve said. As of June 30, the bank listed Tier 1 risk-based capital of 13.12 percent, compared with 17.74 percent a year earlier.

Other requirements include the company submitting a plan to strengthen board oversight of the management and operations of the bank; submitting a plan to improve loan underwriting and credit administration; not extending or renewing any credit for any borrower that has been charged off by the bank or classified as a loss, and not extending credit to a borrower who has been classified “doubtful” or “substandard.”

The bank holding company has 60 days to submit a plan to improve management of the bank’s liquidity position and a revised investment policy and procedures. The company cannot not declare or pay any dividends without regulatory approval.

- The Business Journal of Milwaukee

]]> 2312 2009-09-17 12:00:33 2009-09-17 19:00:33 open open security-financial-agrees-to-make-operating-improvements publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4093#comments wfw:commentRSS http://zikkir.com/business/4093/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4093 syndication_item_hash 8b74608a6956563df484c7abd20dbbb8 Fund disposes portion of MGIC holdings http://www.ethiopianreview.com/business/2310 Thu, 17 Sep 2009 19:02:54 +0000 http://zikkir.com/business/?p=4099 Eastbourne Capital Management LLC, which is one of two investment funds connected with a San Francisco Bay-area investment firm that had bulked up on MGIC Investment Corp. stock earlier this year at less than $1 per share, has disposed of 44 percent of its stake.

Eastbourne Capital Management, of San Rafael, Calif., sold about 8.1 million shares of stock in Milwaukee-based MGIC (NYSE: MTG) in 28 transactions between Monday and Wednesday, according to a filing Thursday with the U.S. Securities and Exchange Commission. The transaction prices ranged from $8.71 per share to $9.41 per share.

The fund had purchased MGIC stock in March at prices ranging from 85 cents to 99 cents per share, as did another fund also run by Richard Jon “Rick” Barry, the Black Bear Offshore Master Fund LP of Grand Cayman.

The Black Bear Offshore Master Fund disposed of more than 3.6 million shares of MGIC stock on July 1 when MGIC’s closing price was $4.36, according to an earlier SEC filing. The Black Bear fund still holds nearly 9.4 million shares of MGIC stock and Eastbourne Capital Management still holds 10.3 million shares.

Eastbourne Capital is the general partner or manager and investment adviser of funds that hold the MGIC stock directly on behalf of the funds’ investors, according to SEC filings. Both funds have a connection to Barry, whose office is in San Rafael, north of San Francisco.

Eastbourne Capital was listed as MGIC’s second-largest shareholder in the company’s April 13 proxy statement, when MGIC had 125.1 million shares outstanding. The largest shareholder was Old Republic International Corp. of Chicago, which held 18.6 million shares.

MGIC stock was trading Thursday at $9.12 per share, up 18 cents. The stock hit its 52-week low on March 9 at 70 cents per share.

- by Rich Kirchen | The Business Journal of Milwaukee

]]> 2310 2009-09-17 12:02:54 2009-09-17 19:02:54 open open fund-disposes-portion-of-mgic-holdings publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4099#comments wfw:commentRSS http://zikkir.com/business/4099/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4099 syndication_item_hash 515bae24a03393b1d87d8a9ab15f926e Xiotech raises $10M in financing http://www.ethiopianreview.com/business/2308 Thu, 17 Sep 2009 19:05:44 +0000 http://zikkir.com/business/?p=4105 Xiotech Corp. has raised $10 million in financing through a private placement, money it will use for product development, the company announced Thursday.

Eden Prairie-based Xiotech, which makes data storage technology, also received a $10 million line of credit as part of the financing package.

Xiotech raised $40 million in capital in 2007 from a group of investors led by Stephen Luczo, CEO, president and chairman of Scotts Valley, Calif.-based Seagate. That deal was announced less than a month after Xiotech reached an agreement to license certain Seagate Technology.

Segate and Xiotech have a history. Seagate bought Xiotech in 2000 in a deal worth $360 million; it later sold the company to an investment firm.

Xiotech did not disclose the investors who participated in its most recent financing.

The company plans to use the capital to launch a new set of products in 2010. Those products will complement the technology the firm acquired from Seagate, Xiotech said in a press statement.

- by Katharine Grayson | Minneapolis / St. Paul Business Journal

]]> 2308 2009-09-17 12:05:44 2009-09-17 19:05:44 open open xiotech-raises-10m-in-financing publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4105#comments wfw:commentRSS http://zikkir.com/business/4105/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4105 syndication_item_hash 160a05f4302d5facb0a0d07d61ee5518 Washington Federal raises $330M, shares upgraded http://www.ethiopianreview.com/business/2307 Thu, 17 Sep 2009 19:06:49 +0000 http://zikkir.com/business/?p=4108 Washington Federal Inc. announced a public offering of common stock that could raise about $330 million in total net proceeds for the Seattle thrift; a move that impressed analysts.

On Thursday, FBR Capital upgraded shares in the company from “underperform” to “outperform.” At McAdams Wright Ragen in Seattle, analysts reaffirmed the company’s “buy” rating.

“The move bolsters the company’s already strong capital position and is a clear signal that management does not intend to sit on the sidelines during the next phase of consolidation in the Northwest,” wrote analyst Sara Hasan, who appears bullish on the company (NASDAQ: WFSL), in a note to investors.

“We believe WFSL now has the strongest capital position in the Northwest as a result of bolstering its already robust equity position … Management points out that, as a niche player, it has plenty of room to expand its market share, even without acquisitions,” Hasan continued, adding that she’s raising her target price on the company’s shares to $25 from $22.

- Puget Sound Business Journal (Seattle)

]]> 2307 2009-09-17 12:06:49 2009-09-17 19:06:49 open open washington-federal-raises-330m-shares-upgraded publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4108#comments wfw:commentRSS http://zikkir.com/business/4108/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4108 syndication_item_hash 166d241a220bf39267cf64c4400024b0 ADESA plans IPO to cut red ink http://www.ethiopianreview.com/business/2306 Thu, 17 Sep 2009 19:08:19 +0000 http://zikkir.com/business/?p=4111 The owner of used-car auction giant ADESA, which has a major operation in the Town of Newstead, plans a $400 million initial public stock offering.

Indiana-based KAR Holdings Inc. said it hopes to raise $400 million in the IPO with some of the proceeds going toward reducing its $2.52 billion in debt.

KAR operates 214 physical auction locations and from 2004 to 2008 sold 9.4 million to 9.7 million vehicles per year in the U.S.

- by Thomas Hartley | Business First of Buffalo

]]> 2306 2009-09-17 12:08:19 2009-09-17 19:08:19 open open adesa-plans-ipo-to-cut-red-ink publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4111#comments wfw:commentRSS http://zikkir.com/business/4111/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4111 syndication_item_hash 47592077e04252c75b964c2ab1971585 Regulators crack down on Tampa’s Century Bank of Florida http://www.ethiopianreview.com/business/2305 Thu, 17 Sep 2009 19:09:46 +0000 http://zikkir.com/business/?p=4114 The board of directors of Century Bank of Florida has until late October to develop a plan to improve the bank’s financial condition, under a written agreement with the Federal Reserve Bank of Atlanta and the Florida Office of Financial Regulation.

The agreement, published on the Federal Reserve’s Web site, requires the bank to strengthen credit risk management practices and improve loan underwriting and credit administration. Regulators want the bank to beef up capital and want the board of directors to strengthen its oversight of the management and operations of the bank.

The agreement restricts the bank from paying dividends and requires it submit reports updating its progress to regulators on a regular basis.

The written agreement, dated Aug. 25, was signed by Jose Vivero, chairman and chief executive officer of Century Bank of Florida. A call to Vivero for comment was pending return.

Century Bank of Florida, which has one office in Tampa, had $84.6 million in assets on June 30, down from $95.6 million in assets a year earlier, according to a report filed with the Federal Deposit Insurance Corp. The bank’s net income was $68,000 through the first half of 2009, compared to $217,000 through the first six months of 2008. Driving the decline was a decrease in net interest income and a bigger provision for loan and lease losses, $185,000 for the period ended June 30, compared to $90,000 in the year-ago period.

As of June 30, the bank’s total risk-based capital ratio was 12.21 percent. The FDIC considers a bank well capitalized if its total risk-based capital ratio is 10 percent or more.

Century Bank of Florida is the latest of several Tampa Bay area banks to enter a written agreement with regulators. A similar agreement with the Federal Reserve was announced last month between FCB Financial Inc., the parent company of First Commercial Bank of Tampa Bay.

Manatee River Community Bank and its parent company, MRCB Holdings Inc., signed supervisory agreements in late August with the Office of Thrift Supervision, as did Century Bank, a federal savings bank in Sarasota.

Century Bank of Florida and the Sarasota thrift are not connected to each other.

- by Margie Manning | Tampa Bay Business Journal

]]> 2305 2009-09-17 12:09:46 2009-09-17 19:09:46 open open regulators-crack-down-on-tampa%e2%80%99s-century-bank-of-florida publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4114#comments wfw:commentRSS http://zikkir.com/business/4114/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4114 syndication_item_hash 80c30dcf858bb2148dc441b5c75919cb FDIC sells off Franklin assets http://www.ethiopianreview.com/business/2304 Thu, 17 Sep 2009 19:11:03 +0000 http://zikkir.com/business/?p=4117 The Federal Deposit Insurance Corp. has sold off another chunk of the loan portfolio of a failed Houston bank.

Residential Credit Solutions, based in Fort Worth, emerged the winner to take over residential mortgage assets previously held by Franklin Bank, which was shut down by the FDIC in November 2008. The loans have a balance of $1.3 billion.

Twelve groups bid on the assets in a sale the FDIC is using to test its Legacy Loans Program, designed to assist banks to remove troubled loans from their balance sheets.

The FDIC has set up a limited liability company containing the Franklin assets, and Residential Credit will pay $64 million for a 50 percent equity stake in the company, which in turn will issue a note in the amount of $727.7 million to the FDIC as receiver. Residential Credit will manage the portfolio and service the loans.

Franklin Bank, the operating subsidiary of Franklin Bank Corp., had $5.1 billion in assets at the time it failed. About $3.7 billion of those assets were purchased by another Houston bank holding company, Prosperity Bancshares Inc.

- by Greg Barr | Houston Business Journal

]]> 2304 2009-09-17 12:11:03 2009-09-17 19:11:03 open open fdic-sells-off-franklin-assets publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4117#comments wfw:commentRSS http://zikkir.com/business/4117/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4117 syndication_item_hash 78cb41e6768c289c8a863ffab30e29ef California workers’ comp claim costs rising http://www.ethiopianreview.com/business/2302 Thu, 17 Sep 2009 19:13:45 +0000 http://zikkir.com/business/?p=4124 Workers’ compensation insurers in California are seeing an increase in average lost-work claim costs and a decrease in the number of lost-work claims, and they’re spending more of each premium dollar they collect to pay claims.

Those are some of the findings of a report released Wednesday on workers’ comp insurers’ experience through the first half of the year in the Golden State.

The Workers’ Compensation Insurance Rating Bureau of California, which advises the state’s insurance regulators and insurers on rates, estimates the average cost of a workers’ compensation claim for lost-work time for 2008 (once all the ultimate costs are settled) will be much higher than for each of the last several years and well above what it was right before the system was reformed early this decade.

The average cost of a 2008 indemnity claim will be at least $57,000, but could be $64,000. The Rating Bureau offered the two estimates, based on potential impacts from two controversial judicial board rulings involving permanent disability issues. The $64,000 was the Rating Bureau’s estimate for the amount if the Workers’ Compensation Appeals Board didn’t temper its February rulings on the Almaraz/Guzman and Ogilvie cases. The smaller amount was if the Appeals Board’s Sept. 3 revision to those rulings temper the impacts.

The Rating Bureau is still analyzing the Sept. 3 revised rulings.

Stakeholders in the workers’ comp system, however, told the Business Journal this week that the revisions only tweaked without really changing the original rulings.

At either $57,000 or $64,000, it would represent, the Rating Bureau said, “the third consecutive double-digit severity increase after sharp severity declines in 2003, 2004 and 2005.”

On the other hand, frequency, or the number of claims for lost work, is heading in the right direction. Frequency for the first six months of 2009 is estimated to be 10.4 percent less than the first half of last year, and less than 30 percent of the all-time high in 1991.

Workers’ comp insurers are paying out more of each buck they collect in premium. For the first half of 2009, they spent 71 cents of every premium dollar on claims. The ratio of 71 percent is “nine percentage points higher than the ratio for the first six months of 2008 and seven percentage points above the loss ratio for the full 2008 calendar year,” the Rating Bureau said in its report. Counting both claims and expenses, insurers in 2008 spent $1.01 for every buck of premium they collected. That 101 percent ratio is 16 percentage points higher than in 2007.

In other findings:

• California gross written premium reported for the first half of this year is estimated at $4.5 billion, which is about 18 percent below that of the first half of 2008.

• In the first half of this year, employers on average paid for workers’ comp coverage $2.33 for every $100 of payroll. That’s comparable to the average rate for all of 2008, and about 64 percent less than the average paid in the second half of 2003, which is the system’s high-water mark before reforms.

• Insurers’ ultimate losses on all injuries that occurred on or before Dec. 31, 2008 are estimated to be several billion dollars less than what insurers reported. The Rating Bureau once again gave two scenarios, based on tempered or unchanged rulings by the Appeals Board. Insurers’ losses are $5.4 billion less that the amount reported by insurers, if the revised rulings are considered to be tempered, or $2.6 billion less if the decisions are not tempered.

- by Kelly Johnson | Sacramento Business Journal

]]> 2302 2009-09-17 12:13:45 2009-09-17 19:13:45 open open california-workers%e2%80%99-comp-claim-costs-rising publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4124#comments wfw:commentRSS http://zikkir.com/business/4124/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4124 syndication_item_hash 5ff2cc186c22f36147c1ca80cd403845 Obama furthers health-care reform push at UMd. rally http://www.ethiopianreview.com/business/2301 Thu, 17 Sep 2009 19:14:54 +0000 http://zikkir.com/business/?p=4127 Greeted with marching bands and chants of “health care now,” President Barack Obama continued his push for health care reform Thursday in front of thousands at the University of Maryland’s flagship College Park campus.

Obama tailored his message toward young adults, stressing the need that they obtain health insurance so they are not burdened with staggering medical bills. One third of young adults do not have health insurance and have trouble paying medical bills, he said.

Obama touched on familiar themes in this address, including a call for the public option, or a government-run health insurance plan. The public option has been the most contentious point of the health care debate. Democrats say it the public option would force private insurers to lower costs and be more competitive while Republicans blast it as a government takeover of health care.

The president also pointed to the “unprecedented” coalition of doctors, nurses and hospitals that have backed the Democratic health care overhaul.

“It was good to have a campaign-like rally outside of a campaign,” said Howard County Executive Ken Ulman, who attended the event. Ulman said Obama struck a chord that had been echoed during the campaign trail — fixing health care won’t be easy, but it must get done.

Many in attendance arrived at the crack of dawn to hear the president’s speech. Gov. Martin O’Malley, Democratic Senators Benjamin Cardin and Barbara Mikulski and Congressman John Sarbanes were among the Maryland officials who turned out for the event.

Obama’s speech comes during a critical juncture of the national health care overhaul. On Wednesday, Sen. Max Baucus, D-Mont., unveiled a $856 billion bill that would create a new health insurance exchanges but does not include a government-run plan that was part of three U.S. House bills and one Senate bill. The proposal, however, lacks Republican support in spite of weeks of intense negotiation and attempts to reach out across the aisle.

– by Julekha Dash | Baltimore Business Journal

]]> 2301 2009-09-17 12:14:54 2009-09-17 19:14:54 open open obama-furthers-health-care-reform-push-at-umd-rally publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4127#comments wfw:commentRSS http://zikkir.com/business/4127/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4127 syndication_item_hash b29aef83fa8a39ba42c9aa7c19392b4c Wachovia files foreclosure on Forest View Estates http://www.ethiopianreview.com/business/2300 Thu, 17 Sep 2009 19:16:08 +0000 http://zikkir.com/business/?p=4130 Wachovia Bank is seeking to foreclose on the developer of the Forest View Estates in Dania Beach.

The bank filed the foreclosure lawsuit against Aventura-based Stirling LLC on Sept. 2, according to Broward County Circuit Court records. It concerns a mortgage last modified at $10.9 million in 2006 and targets 28 unsold homes and home sites.

Forest View Estates is on 4.9 acres along the north side of Stirling Road and the west side of Southwest 35th Avenue. Stirling LLC sold three homes for a total of $3.2 million in 2007 and 2008.

An online advertisement currently lists a home in Forest View Estates for sale at $650,000.

Fort Lauderdale attorney Marissa D. Kelley, who represents Wachovia in the foreclosure, did not immediately return a call seeking comment.

- by Brian Bandell | South Florida Business Journal

]]> 2300 2009-09-17 12:16:08 2009-09-17 19:16:08 open open wachovia-files-foreclosure-on-forest-view-estates publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4130#comments wfw:commentRSS http://zikkir.com/business/4130/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4130 syndication_item_hash e150c0847ad89b491455b34529793880 Bob McDonnell, Creigh Deeds face off in Fairfax County http://www.ethiopianreview.com/business/2299 Thu, 17 Sep 2009 19:17:30 +0000 http://zikkir.com/business/?p=4133 With less than 50 days until Election Day, the Virginia gubernatorial candidates faced each other Thursday in Northern Virginia’s premier political event.

Democratic state Sen. Creigh Deeds and Republican Bob McDonnell, a former state attorney general, exchanged fire in a debate moderated by David Gregory, host of “Meet the Press,” at Capital One Financial Corp.’s headquarters in McLean.

McDonnell won a coin toss that awarded him the opening statements. He outlined the state’s woes — a $5.5 billion budget deficit and 72 Virginia public schools that are not fully accredited — and called Deeds’ campaign “backwards looking” and only focused on the social issues.

Deeds pointed out that his opponent was the biggest spender in the General Assembly. Deeds said he wrote the legislation that established the governor’s opportunity fund — which has created and saved 78,000 jobs. He said McDonnell, who originally opposed the fund, is now calling it the “centerpiece” of his economic recovery plan.

The candidates were handed questions from three panelists: Bruce DePuyt of NewsChannel 8, Elizabeth Drachman of the Washington Business Journal and Bryan Nehman from radio station WMAL.

Businesses, Fairfax Chamber of Commerce board members and event sponsors packed the auditorium, with representatives from Volkswagen, Dominion Virginia Power and the Northern Virginia Technology Council present.

In the first debate of statewide political contests held after Labor Day, the candidates claimed to agree on several issues, including their opposition to a cap-and-trade bill. Deeds said McDonnell is spending money to tell people that Deeds is for it.

Agreements were reached when it came to controlling illegal immigration. Deeds agrees to work with the federal government but would not tap into Virginia resources to enforce federal law. Their dual opposition to Guantanamo Bay prisoners coming to Virginia was also clear.

Gregory’s first controversial question was about McDonnell’s thesis, which suggests working women are detrimental to family. Deeds has been milking statements in his opponent’s 20-year-old paper to say he still doesn’t believe in equal pay for women. Gregory asked McDonnell what has changed in his views.

“I believe in a strong family — it’s the bed rock of society,” he said, mentioning how half of his deputy staff were women in his attorney’s general office and talks about his daughter’s service overseas.

Key issues discussed included health reform, gun sales, energy and transportation.

Differences of opinion when it came to transportation funding were evident, with Deeds saying every funding mechanism is on the table. He accused McDonnell of wanting to take $540 million a year out of the general fund, to which McDonnell said his opponent has “no transportation plan.”

McDonnell said an area he agrees with President Barack Obama is on education reforms and said his kind of democrat is businesswoman Sheila Johnson, who he pointed to in the audience.

McDonnell’s opposition to the president was voiced when it came to discussing Virginia’s medical care system, which he called “greatest” in the world, and how turning it over to the federal government is wrong. Deeds pointed out that 1.1 million Virginians are without health insurance and said he wants to provide more medical professionals to underserved regions.

McDonnell praised such energy forms as coal, natural gas, nuclear, offshore drilling — items his candidate also endorses — but Deeds added that “we can’t get royalties under federal law even if drilling is allowed,” and said energy technology is the next economy.

Gregory point blank asked the candidates if they would raise taxes, to which Deeds said no and inserted that he is the only candidate that would ink a transportation plan that would include new revenue for transportation.

Both candidates have also confirmed that they will participate in the Radio One Candidate Forum on Sept. 22 and in the AARP and League of Women Voters’ People’s Debate, Oct. 12. Both debates will be in Richmond.

Each candidate slammed the other in their closing remarks. McDonnell said Deeds got an “F” from small businesses, and Deeds said his opponent is focused on a narrow social agenda.

- by Tierney Plumb | Washington Business Journal

]]> 2299 2009-09-17 12:17:30 2009-09-17 19:17:30 open open bob-mcdonnell-creigh-deeds-face-off-in-fairfax-county publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4133#comments wfw:commentRSS http://zikkir.com/business/4133/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4133 syndication_item_hash 5ff2d0a68cede840540b506ef89f680f No environmental impact study required for Beacon Power project http://www.ethiopianreview.com/business/2298 Thu, 17 Sep 2009 19:18:33 +0000 http://zikkir.com/business/?p=4136 Beacon Power Corp. is not required to perform an environmental impact study on a site in Stephentown, N.Y., proposed for a 20-megawatt flywheel power storage plant.

The state Public Service Commission said today that the facility planned for the rural Rensselaer County community would not adversely impact the environment.

It was the first step in the PSC regulatory process. Next, the agency will decide whether or not to approve construction and operation of the $69 million plant.

The news comes as Beacon (Nasdaq: BCON) initiates plans to build a similar plant in Glenville, Schenectady County.

The company has requested a $46.7 million grant from the Department of Energy to build two 20-megawatt flywheel plants. One the plants would be located in Glenville; the other would be located out of state, according to a statement issued by the company on Sept. 1.

Further details of the plans were not available Thursday.

The Tyngsboro, Mass. utility is awaiting approval of a $43 million guaranteed loan through the Department of Energy for the Stephentown project. DOE in July conditionally approved the loan request. The New York State Energy Research and Development Authority issued a $2 million grant for the project.

The Stephentown energy storage facility would be Beacon’s first 20-megawatt plant, proving enough power to supply 200 homes for a day.

The company operates a 2-megawatt plant near its Tyngsboro headquarters.

Beacon’s roughly $26 million equity contribution to the plant in Rensselaer County will be a combination of cash, in-kind assets and other eligible project costs. About $12 million of that already has been invested in the project, company officials said.

The PSC identified only temporary impacts during construction, and the permanent loss of two acres of woodlands that will be cleared at the seven-acre site on Grange Hill Road.

In addition to enhancing the grid’s reliability, the plant is expected to lower electricity costs for consumers, reduce greenhouse gas emissions and increase system capacity. “Finding ways to spur the development of renewable energy sources in New York is of prime importance,” said Commission Chairman Garry Brown.

Beacon CEO Bill Capp has said the company likes New York state because it’s receptive to new clean-energy technologies.

The plant is not expected to create any long-term local jobs because it will run unattended, he said. Between 15 and 20 people would be employed during the plant’s one-year construction period. It’s not clear if those workers would be local.

- by Pam Allen | The Business Review (Albany)

]]> 2298 2009-09-17 12:18:33 2009-09-17 19:18:33 open open no-environmental-impact-study-required-for-beacon-power-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4136#comments wfw:commentRSS http://zikkir.com/business/4136/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4136 syndication_item_hash 6c189312a77b54aa2c21035fc7cca29e Consumers’ confidence up, but may still curb spending http://www.ethiopianreview.com/business/2297 Thu, 17 Sep 2009 19:26:11 +0000 http://zikkir.com/business/?p=4139 A recent survey of Middle Tennessee adults shows an increase in consumer confidence, but cautions that retailers should not expect immediate increases in consumer spending.

The survey, released today by the Middle Tennessee State University’s Office of Consumer Research, reports the confidence index increased to 142, up from 113 in May.

“This gain was due almost entirely to consumers’ more upbeat expectations for the future economy,” Dr. Timothy Graeff, director of the consumer research office, wrote in a report summary.

The report, however, is not entirely good news for retailers.

“Perceptions of the current economy have become only slightly less negative, and consumers have actually become less likely to believe that now is a good time to make large purchases,” Graeff said in the report.

“Fears about further losses in the job market are having an excessive drag upon consumers’ optimism regarding the future of the economy,” Graeff said. “The significant positive shift in consumers’ optimism toward the future of the economy might be due less to changes in the fundamentals of the economy, and more to consumers thinking, ‘It cannot get much worse, so it has to get better.’

“As such,” Graeff concluded, “the recent increases in consumer confidence over the past few months do not necessarily mean that we will see sharp increases in consumer spending in the immediate future.”

The MTSU poll of 450 randomly selected adult residents of Davidson, Rutherford and Williamson counties was conducted Sept. 14 and 16.

- by Eric Snyder | Nashville Business Journal

]]> 2297 2009-09-17 12:26:11 2009-09-17 19:26:11 open open consumers%e2%80%99-confidence-up-but-may-still-curb-spending publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4139#comments wfw:commentRSS http://zikkir.com/business/4139/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4139 syndication_item_hash ff96c36e54175e2d83e7c85a4ca6f18e Perdue cuts ACORN contract http://www.ethiopianreview.com/business/2296 Thu, 17 Sep 2009 19:27:04 +0000 http://zikkir.com/business/?p=4142 Georgia Gov. Sonny Perdue said the state will not renew a contract with the controversial Association of Community Organizations for Reform Now (ACORN), after 70 ACORN employees were convicted of crimes committed in the course of their work.

ACORN has investigations, indictments and prosecutions currently pending against it and its staff throughout the nation. The U.S. Census Bureau ended its relationship with ACORN on Sept. 11 and the U.S. Senate voted 83-7 to cut off federal funding from ACORN on Sept. 14.

ACORN has a contract with the Georgia Department of Human Services that expires at the end of September.

Perdue also issued an order preventing executive branch offices from doing business with the group and puts under review any existing ACORN contracts.

“In July, I directed my office to review all consulting contracts the state has with outside vendors to look for budget savings; that review did not identify the ACORN contract, because it does not involve state funds,” Perdue said. “The state of Georgia will not renew the contract, which expires in 13 days. Further, I have issued an executive order that prevents executive branch agencies from doing business with ACORN in the future and calls for a review of any existing contracts with ACORN.”

- Atlanta Business Chronicle

]]> 2296 2009-09-17 12:27:04 2009-09-17 19:27:04 open open perdue-cuts-acorn-contract publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4142#comments wfw:commentRSS http://zikkir.com/business/4142/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4142 syndication_item_hash 9e43a56f97399376a025212d3758a70c Coffee at four-week high http://www.ethiopianreview.com/business/2237 Thu, 17 Sep 2009 19:27:24 +0000 http://zikkir.com/business/?p=4054 With global coffee output remaining at the lowest levels in the recent years, Indian coffee is fetching higher prices in the global markets. Output from major coffee-producing countries, including India and Brazil, has remained low this year, leading to a supply shortage globally. That has triggered price rise, and according to industry sources, prices will remain comfortable for the next 4-5 months.

Indian arabica coffee prices have hit a four-week high in the international markets. According to the Coffee Board data, ICE (New York) arabica coffee futures closed solidly higher, near the session’s high, and hit a four-week high on Monday. December coffee closed up 4.92 per cent up, at $1.33 per pound. Similarly, September coffee closed up 5 per cent, at $1.32 per pound. Liffe (London) robusta coffee futures followed the US market and closed higher on Monday. Liffe September and November prices settled up $17 each at $1,491 per tonne and $1,505 per tonne respectively.

According to a presentation made by the Coffee Board at the inaugural of the 116th annual conference of the United Planters’ Association of Southern India (Upasi) at Coonoor in Tamil Nadu on September 15, prices of Indian coffee will remain comfortable for the next 4-5 months till the new crop arrives at the market. This year, there was heavy crop losses in the biggest coffee-producing state of Karnataka due to untimely and excessive rains, and the berry-borer menace. Hence, the Coffee Board had to trim its output forecast. It is estimated that in the present year, the total output in the country will stand at 262,300 tonnes, which is 10 per cent lower than the initial (post-blossom) estimates of 293,000 tonnes.

A senior Coffee Board official said that a comfortable price situation will continue in the next few months, at least till June 2010, when Brazil’s new crop comes to the market. Brazil is expecting a bumper crop in 2010. And even India has pegged its output at a higher level at 306,300 tonnes — arabica 101,525 tonnes and robusta 204,755 tonnes, which will arrive in the market in January 2010. According to Ramesh Raja, president, Coffee Exporters Association of India, prices may remain high only for a short period. A high output in major coffee-producing countries would mean a glut in the market, resulting in a sharp fall in the international markets. “In India, prices may not fall much as there will be a sustained domestic demand.

However, exports will see sharp reduction in their price realisation. So, the next year will be characterised by high volumes and low prices,” Raja noted.

Coffee exports from India are still reeling from the impact of global recession. Coffee exports during the January 1 to September 14, 2009, period stood at 137,276 tonnes, which is 20 per cent lower compared to the corresponding period of the previous year.

- By Rashmi Shrikant | Business Standard

]]> 2237 2009-09-17 12:27:24 2009-09-17 19:27:24 open open coffee-at-four-week-high publish 0 0 post syndication_item_hash c11a522e2078a2b7661e51048cf5591e syndication_permalink http://zikkir.com/business/4054 syndication_feed http://zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/4054/feed rss:comments http://zikkir.com/business/4054#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir _edit_lock 1253215618 _edit_last 1 271 123.238.52.137 2009-10-04 20:08:30 2009-10-05 03:08:30 0 0 0 Economic development community forum scheduled http://www.ethiopianreview.com/business/2295 Thu, 17 Sep 2009 19:28:00 +0000 http://zikkir.com/business/?p=4145 State Rep. Diana Maldonado will host an economic development community forum on Sept. 22 to discuss current development practices and future business opportunities affecting her Williamson County district.

The forum is open to the public and will include a panel discussion involving experts from the Texas Comptroller Office, the city of Round Rock and the Round Rock Chamber of Commerce.

“Economic development is crucial to the growth of our communities and our region,” Maldonado said. “Creating an environment to attract new businesses and retains current ones directly contributes to the success and quality of our schools, health care system and community. Cities across Williamson County are facing similar concerns regarding growing pains and the economy, and I believe bringing experts together for a conversation on ways to deal with these difficult situations will prove beneficial to our leaders and the public.”

Maldonado’s offices said this is the first in a series of public forums the representative will host in coming months to discuss issues important to her constituents.

Maldonado is serving her first term in the Texas House. Her District 52 covers a portion of Williamson County, including Round Rock, Taylor, Hutto, Thrall, Coupland and part of Georgetown and Austin.

- Austin Business Journal

]]> 2295 2009-09-17 12:28:00 2009-09-17 19:28:00 open open economic-development-community-forum-scheduled publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4145#comments wfw:commentRSS http://zikkir.com/business/4145/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4145 syndication_item_hash 8d9c95b71b713ae9e784d056714d7926 Pa. jobless rate rises to 8.6 percent in August http://www.ethiopianreview.com/business/2294 Thu, 17 Sep 2009 19:29:36 +0000 http://zikkir.com/business/?p=4148 Pennsylvania’s seasonally adjusted unemployment rate rose one-tenth of a percentage point to 8.6 percent in August, the state Department of Labor & Industry said Thursday. The state is still lower than the national rate of 9.7 percent, which remained flat in July.

Since August 2008, the seasonally adjusted number of Pennsylvania jobs shrunk by 191,500, or 3.3 percent, while jobs nationally were down 4.3 percent over the same period.

The number of Pennsylvanians working or looking for work fell by 37,000 in August, to about 6.35 million, which is a 17-month low.

Hardest hit between August 2008 and last month were jobs in manufacturing, which declined 11.4 percent in Pennsylvania, and all goods-producing industries, which lost 10.6 percent of its jobs. Education and health care jobs continued to grow slightly, with an increase of 2.3 percent year-over-year. And jobs in mining and logging also were up in August, with a 6.8 percent increase from a year ago.

- Pittsburgh Business Times

]]> 2294 2009-09-17 12:29:36 2009-09-17 19:29:36 open open pa-jobless-rate-rises-to-8-6-percent-in-august publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4148#comments wfw:commentRSS http://zikkir.com/business/4148/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4148 syndication_item_hash 8fc5d09113dea2a9be3a4d7cfcf09d82 Kyle passes 2010 budget http://www.ethiopianreview.com/business/2293 Thu, 17 Sep 2009 19:30:40 +0000 http://zikkir.com/business/?p=4151 The Kyle City Council approved a $36 million budget for 2010 at its meeting on Sept. 15.

The new budget maintains existing service levels, but does not call for any increased services. The budget raises the property tax rate from 37 cents per $100 valuation to 42 cents, or just over 8 percent from the 2009-2010 fiscal year.

Highlights of the new budget include $3.6 million for capital improvements projects for the city’s sewer/wastewater system and an 18 percent increase in funding for additional police staffing. The budget also includes funds to complete site development of Kyle’s proposed new library, new information technology funding to improve the city’s permitting process, new equipment and staffing to enhance the city’s drainage and flood control, and major hardware and software improvements.

All full-time city employees will also receive a 2 percent cost of living wage increase.

This marks the second consecutive year the City has raised property taxes after a period of 10 years where the tax rate was continually lowered.

The city of Kyle has been one of Texas’s fastest growing cities during the last 10 years; the community’s population has increased from 5,000 in 2001 to approaching 30,000 in 2010.

- Austin Business Journal

]]> 2293 2009-09-17 12:30:40 2009-09-17 19:30:40 open open kyle-passes-2010-budget publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4151#comments wfw:commentRSS http://zikkir.com/business/4151/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4151 syndication_item_hash 08ea29b8a500c5a85e28244820e24212 NCAA president, RPI trustee Brand dies http://www.ethiopianreview.com/business/2292 Thu, 17 Sep 2009 19:46:14 +0000 http://zikkir.com/business/?p=4154 Myles Brand, president of the National Collegiate Athletic Association and a trustee at Rensselaer Polytechnic Institute, died Sept. 16.

Brand graduated from Rensselaer with a bachelor’s in philosophy in 1964. He received an honorary doctorate in 1991.

Brand had been one of 30 “active” trustees at the private school in Troy, N.Y., since 2004. The board also has adjunct and honorary trustees.

Brand is a member of the Rensselaer Alumni Hall of Fame. He chaired the fundraising effort behind the school’s new $92 million athletics complex, which will be officially unveiled next month.

Rensselaer President Shirley Ann Jackson called Brand “a loyal son and devoted friend of Rensselaer.”

“He was known nationally as a champion of academic reform, fiscal responsibility, and student athlete well-being,” Jackson said in a statement.

Earlier in his career, Brand was the president of Indiana University and the University of Oregon.

Brand died of pancreatic cancer. He was 67.

- The Business Review (Albany)

]]> 2292 2009-09-17 12:46:14 2009-09-17 19:46:14 open open ncaa-president-rpi-trustee-brand-dies publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4154#comments wfw:commentRSS http://zikkir.com/business/4154/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4154 syndication_item_hash 78ffb27e381df75a98b691be26702c26 Hale sells Merritt Athletic Club site in Canton http://www.ethiopianreview.com/business/2291 Thu, 17 Sep 2009 19:48:13 +0000 http://zikkir.com/business/?p=4160 Baltimore developer Edwin F. Hale Sr. sold the building that houses a Merritt Athletic Club in Canton Crossing to the club’s owner, Leroy Merritt, narrowly avoiding a bank foreclosure of the property.

Hale sold the building Sept. 10 for $6.2 million to a Merritt entity called Merritt Canton BP LLC, according to Baltimore City Circuit Court land records. That’s $3 million more than Hale bought the property at 3401 Boston St. for in 2001. First Mariner Bank (NASDAQ: FMAR), of which Hale is CEO, agreed to partially finance the deal with a $5.3 million acquisition loan to Merritt.

The sale price also is about $2.2 million more than Hale owed Carrollton Bank in mortgage payments on the property. As the Baltimore Business Journal first reported Aug. 21, Carrollton planned to auction the property Sept. 14 through A.J. Billig & Co. Auctioneers. Carrollton claimed Hale and his Canton Crossing LLC were in default of a nearly $4 million loan he took out in December 2007 to buy and develop the athletic club building.

Carrollton took the property off the market prior to its planned auction date, according to A.J. Billig principal Jack Billig.

The building was just one of dozens of distressed properties across Greater Baltimore threatened by foreclosure. Commercial real estate owners throughout Greater Baltimore are trying to unload millions of dollars of debt by selling off properties they built or bought in the past five years.

Merritt Properties LLC spokeswoman Beth Garner confirmed the sale and said Merritt plans to continue to operate the athletic club there.

Hale could not be reached for comment. Carrollton Bancorp CEO Robert A. Altieri said Hale has satisfied his debt to the bank.

The athletic club is just part of Hale’s 75-acre Canton Crossing waterfront development, a project that has been beset with a number of financial setbacks since it was launched in January 2002. Hale has built out part of the development, crowned by his 17-story First Mariner Tower at Boston and Clinton streets in Canton. But the balance of the project, slated to feature as much as 2.5 million square feet of office retail and commercial space, has been delayed due to financial and legal challenges.

- by Daniel J. Sernovitz | Baltimore Business Journal

]]> 2291 2009-09-17 12:48:13 2009-09-17 19:48:13 open open hale-sells-merritt-athletic-club-site-in-canton publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4160#comments wfw:commentRSS http://zikkir.com/business/4160/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4160 syndication_item_hash 36ab0d32b0e4bfd3efa9e738b0bbe2f3 Contrarian investor Eola Capital acquires ACP http://www.ethiopianreview.com/business/2290 Thu, 17 Sep 2009 19:49:08 +0000 http://zikkir.com/business/?p=4163 Tampa landlord Eola Capital continues to grow in leaps and bounds. The real estate investment company has acquired the general partnership interests in 7.6-million-square-feet of commercial office space valued at $1.1 billion from America’s Capital Partners of Miami, it said Thursday.

ACP’s Rivergate Tower, known in local real estate circles as “the Beer Can building,” in downtown Tampa is not included.

Through the acquisition, Eola Capital, based in Orlando, will nearly double its 16.1-million-square-feet of office space and add another $400 million of invested capital under management. Miami-based America’s Capital Partners co-founder Rudy Touzet will join Eola Capital as chief executive officer.

“In what are clearly challenging times for our industry, this transaction stands out as an example of just one of the opportunities that exists to create value for our partners, tenants and employees,” Jim Heistand, founder and Chairman of Eola Capital, said in a statement.

“The addition of ACP’s 22 buildings to Eola Capital’s existing footprint offers unparalleled economies of scale and leasing advantages on a local and regional level,” Touzet said in the release.

Eola Capital, one of the largest landlords in the Tampa Bay area, is also expected to buy Corporate Center Four at International Plaza from Crescent Resources LLC, which is reorganizing under Chapter 11 of the U.S. Bankruptcy Code.

- Tampa Bay Business Journal

]]> 2290 2009-09-17 12:49:08 2009-09-17 19:49:08 open open contrarian-investor-eola-capital-acquires-acp publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4163#comments wfw:commentRSS http://zikkir.com/business/4163/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4163 syndication_item_hash 675a35d34f1068683dd3ea22a33d605b Greensboro’s downtown YWCA for sale http://www.ethiopianreview.com/business/2289 Thu, 17 Sep 2009 19:50:07 +0000 http://zikkir.com/business/?p=4166 The downtown Greensboro YWCA has been listed for sale for $2.99 million.

The nonprofit organization has been operating at a deficit in recent years and has about $90,000 in debts. Proceeds from the sale will help retire the debt.

Officials with the YWCA have said the organization’s mission is evolving, with more focus on mentoring. They are seeking a new, smaller office but have not announced any decisions about relocating yet.

The listing from Hagan Properties says the 23,115-square-foot building on 1.74 acres fronting Davie Street near Summit Avenue would make a good location for another recreation or teen center, or a performance center. The site neighbors the public library, the Greensboro Cultural Center and the Historical Museum.

- The Business Journal of the Greater Triad Area

]]> 2289 2009-09-17 12:50:07 2009-09-17 19:50:07 open open greensboro%e2%80%99s-downtown-ywca-for-sale publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4166#comments wfw:commentRSS http://zikkir.com/business/4166/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4166 syndication_item_hash 3cd4ab14b95aea0d97eef5cb42075c79 New $2.3M jazz club to open in Dayton http://www.ethiopianreview.com/business/2288 Thu, 17 Sep 2009 19:50:59 +0000 http://zikkir.com/business/?p=4169 A new, $2.3 million jazz and supper club is scheduled to start construction this fall in the Wright-Dunbar area of Dayton.

Tootsie’s, a nearly 18,000-square-foot jazz club, will be built on West Third Street, across from the Charles Drew Health Center.

The owner of Tootsie’s, Gwendolin Dorsey, was not immediately available for comment.

The jazz club will be built by Ferguson Construction Co.

Jay Gearon, vice president of Sidney-based Ferguson, said by demolishing the buildings that currently sit vacant on West Third Street and adding this new jazz club, the area will see marked improvement.

“It will be landscaped, well-lit and a significant improvement for the area,” Gearon said. “It will be the western anchor of the Wright-Dunbar district.”

The building will feature a full, commercial kitchen, a “grand ballroom” that can hold up to 300 people, and a bar and lounge area.

Once construction gets underway, Gearon said he expects the project to take about 10 months.

“This is really going to be a sharp-looking building,” Gearon said.

The club also will feature a covered porch that faces West Third Street.

- Dayton Business Journal

]]> 2288 2009-09-17 12:50:59 2009-09-17 19:50:59 open open new-2-3m-jazz-club-to-open-in-dayton publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4169#comments wfw:commentRSS http://zikkir.com/business/4169/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4169 syndication_item_hash d091b98b1ff9102950b48432b2319f0a Boston Properties recasting Russia Wharf plan amid outcry http://www.ethiopianreview.com/business/2342 Thu, 17 Sep 2009 19:53:23 +0000 http://zikkir.com/business/?p=4175 Boston Properties, under fire for allegedly reneging on a promise to produce ample public space at its Russia Wharf development, is back at the drawing board after a state agency said it wants more public amenities on the project’s ground floor.

The Boston Harbor Association has accused Boston Properties of abandoning its pledge to provide free public-performance space on the first floor of its Russia Wharf development, a story first reported by the Boston Business Journal earlier this week.

According to the BHA, Boston Properties was granted the right to build a taller building in exchange for public space on the waterfront site’s ground floor.

The Department of Environmental Protection met in July with executives from Boston Properties, which is developing the 31-story Russia Wharf site along Boston’s waterfront, to discuss the project. DEP spokesman Ed Coletta said Boston Properties was encouraged to revert back to its original plan, which called for first-floor public space.

Earlier this year, after receiving approvals to build a much taller building in exchange for free, public amenities, Boston Properties filed a request with the DEP to instead locate a restaurant on the first floor. Critics said the developer is trying to cut off public access to the waterfront and save money.

Boston Properties will unveil the latest iteration of its plan next week during a meeting with the BHA and Boston Conservation Law Foundation. DEP will likely make a final decision by mid-October, Coletta said.

“We wanted to see more of the public space, the square footage, on the first floor,” he said. “More than what they showed us in the previous plans.”

Coletta declined to provide specific details about the changes DEP suggested because the project is ongoing.

Boston Properties did not respond to repeated requests for comment.

According to a letter sent to DEP by the Boston Harbor Association, Boston Properties asked to reduce the size of a ground floor “Town Square” by 200 square feet to 6,100 square feet, and has moved a “Multi-Media Presentation Area” of 3,800 square feet from the first floor to second floor. The BHA said the areas will not be visible from the street and therefore relatively hidden from the public.

Boston Properties added a 2,800-square-foot outdoor terrace as part of the Multi-Media Presentation Area, which the BHA said would make year-round lectures and screenings difficult.

DEP grants licenses to developers under Chapter 91 regulations which protect and promote public access to the waterfront.

Russia Wharf, which is under construction, was allowed to exceed height regulations that cap development along the waterfront at 155 feet.

- Boston Business Journal

]]> 2342 2009-09-17 12:53:23 2009-09-17 19:53:23 open open boston-properties-recasting-russia-wharf-plan-amid-outcry publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4175#comments wfw:commentRSS http://zikkir.com/business/4175/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4175 syndication_item_hash 73cdaead1b9194786788c05dc9daf093 OSU Medical Center expansion up for initial OK http://www.ethiopianreview.com/business/2341 Thu, 17 Sep 2009 19:55:20 +0000 http://zikkir.com/business/?p=4178 Ohio State University’s new medical center tower will reach as high as its skyscraper dormitories and stretch longer than its fabled football field.

Its footprint on the Central Ohio economy will be equally immense.

The $1 billion expansion of OSU Medical Center is up for a vote before a trustees committee on Thursday. The full board meets Friday morning.

The medical center is projected to add 6,000 jobs with the expansion, which is expected to open in 2014, and supportive businesses will likely add 4,000 jobs, OSU said. Including indirect jobs from increased economic activity, the university estimates the project will be responsible for a total of nearly 32,000 new jobs. Construction will require another 5,000 workers over the next five years.

The university estimates that the medical center will spend $2.3 billion yearly and generate $1.8 billion in ancillary business by 2015 – together a 71 percent increase from its $2.4 billion economic impact in 2008.

The project also will be a boon to recruiting top researchers and improving patient care, said Dr. Steven Gabbe, medical center CEO.

“This hospital has to be a place of hope,” he said. “This is where our sickest patients are going to be cared for.”
New tower for James

A few projects are complete, most notably a two-story addition to Ross Heart Hospital, but the board action clears the way for the bulk of the expansion – a 17-story hospital building. The design has changed significantly from concepts discussed last year, reducing a price tag that had ballooned to $1.4 billion from the $780 million project proposed in 2006.

A five-story core of outpatient and support services will connect to the existing University Hospital. Topping it will be five stories with room for 144 additional critical care beds and a seven-story, 276-bed replacement for James Cancer Hospital and Solove Research Institute.

The medical center keeps its existing 119 critical care beds at the main campus and University Hospital East, and the 160 beds in the existing James will be used for other purposes such as transplants.

Despite recent or planned hospital construction in every other Columbus hospital system, the challenge is waiting for the new beds to come online, Gabbe said. The James is more than 90 percent full on any given day.

OSU hospitals since 2000 have seen a 42 percent increase in admissions, to 55,000 in the year ended June 30, and 55 percent increase in outpatient visits, to 980,000. Revenue nearly tripled to $1.6 billion in that time, and last year’s surplus was $122 million, compared with a $41 million loss in 2000.

Several design changes slashed $400 million from the project without sacrificing, Gabbe said. The new design instead improves aesthetics, energy use and traffic flow, he said.

“We feel we’ve made a huge difference in having an easily accessible patient environment,” Gabbe said. “Especially when they’re coming to be treated for cancer, they have a lot on their minds.”

The promise of the new hospital has helped with several major faculty recruits, he said. “People are contacting us.”

Big savings came from scrapping a plan to build a separate complex for outpatient cancer care and research across Cannon Drive from the main hospital campus. Incorporating outpatient care in the new building and research on every floor of the hospital not only saves money but brings research, clinical care and education into closer proximity, Gabbe said. Bridges will connect the hospital to existing laboratory buildings as well.

Also gone is an early concept for twin curving glass towers, facing each other to create a football shape as seen from the air. Curved hallways have poor sight lines, the inner atrium wouldn’t have had enough sun and glass is more expensive than the brick and metal that will form part of the exterior in the new design, said Jay Kasey, project director.

Also, the new design ensures every patient in the new James will have an outside view, Gabbe said.
Clearing space, adding parking

The new hospital will sit on the site of the demolished Means Hall, and designers now call for tearing down Cramblett Hall, an office and outpatient building. That would enable shifting the whole building slightly south, eliminating the need to tear down and replace a parking garage. It also allows for green space and a more convenient drive for patient pickup and drop-off on the way to parking.

The 600-spot garage next to the new hospital will be designated for patients and visitors, while staff will park in a 1,000-spot garage on Ninth Avenue built in preparation for the expansion.

Designers are aiming for LEED certification, with sun shades and a green roof among other sustainability measures, Kasey said. All-electronic records and bedside computers will make for a paperless facility.

St. Louis-based HOK, which specializes in green design, is the architect. The New York City-based team of Turner Construction Co. and Bovis Lend Lease were selected last fall as co-construction managers for the main expansion.

Medical center officials have raised $13 million of the required $75 million in private fundraising for the project, with the rest to be financed by university bonds.

There are a handful of academic medical center projects of this size in the nation, Kasey said. “Before the economic downturn, there may have been 10.”

Atlanta’s Emory University in March delayed a $1.5 billion expansion of Emory Healthcare. That’s where Dr. Fred Sanfilippo, who first spearheaded OSU’s expansion, departed for in 2007.

- by Carrie Ghose | Business First of Columbus

]]> 2341 2009-09-17 12:55:20 2009-09-17 19:55:20 open open osu-medical-center-expansion-up-for-initial-ok publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4178#comments wfw:commentRSS http://zikkir.com/business/4178/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4178 syndication_item_hash cc38b4dd51b6d01848a4e1e23d6b3841 Human Capital: People on the Move, 09/17 http://www.ethiopianreview.com/business/2340 Thu, 17 Sep 2009 19:58:41 +0000 http://zikkir.com/business/?p=4183 A daily roundup of senior-level executive hires and board appointments: Thursday, Sept. 17

* Rampart Investment Management, a Boston-based asset management firm specializing in option strategies, appointed Richard Davis senior vice president of sales and consultant relations. Prior to joining Rampart Investment Management, Davis served as the head of consultant relations at Natixis in Boston.

* Berkeley Investments Inc., a Boston-based real estate investment and development company, added Joseph Laurano as director of operations of ResMark, Berkeley Investment’s residential development and marketing subsidiary. Laurano’s prior experience includes roles with Crescent Heights of America and, most recently, Otis & Ahearn.

* Boston-based map-lab Inc., a management, architecture and planning-design firm, added Stephen Moore as the director of design and sustainability initiatives. Moore’s prior experience includes work with such firms as Architerra, Elkus Manfredi and Miller Dyer Spears.

* The Boston office of global law firm K&L Gates LLP added Paul Shaw as a partner in the commercial disputes practice. Shaw, a health care fraud and abuse litigator, joins K&L Gates from Brown Rudnick LLP.

* The law firm of Edwards Angell Palmer & Dodge added Christopher Tauro to the firm’s Boston office as a partner in the insurance and reinsurance department. Previously, Tauro was a partner in private practice in Boston.

- Boston Business Journal

]]> 2340 2009-09-17 12:58:41 2009-09-17 19:58:41 open open human-capital-people-on-the-move-0917 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4183#comments wfw:commentRSS http://zikkir.com/business/4183/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4183 syndication_item_hash 2ae51ca2f7275a33296c09c556f7642c Miami firm sells 7.6M square feet of commercial space http://www.ethiopianreview.com/business/2339 Thu, 17 Sep 2009 20:00:46 +0000 http://zikkir.com/business/?p=4186 Miami-based America’s Capital Partners has sold its partnership interests in a 7.6 million-square-foot office portfolio, valued at $1.1 billion, to an Orlando buyer real estate investment firm.

The deal doubles the size of buyer Eola Capital’s portfolio and adds an additional $400 million of invested capital under management, the company said in a statement announcing the deal.

Details of the financial structure of the transaction were not immediately available.

As part of the deal, America’s Capital co-founder and former President Rudy Touzet will acquire an interest in Eola Capital and join the firm as chief executive officer. Touzet left America’s Capital in 2007 and co-founded Miami-based Banyan Street Partners, which manages a 13 million-square-foot office portfolio.

But, Touzet still owned a small stake in the America’s Capital portfolio, Eola spokeswoman Amanda Forbes said.

Eola has opened a new regional office in Coral Gables, where Touzet will be based.

Touzet was not immediately available for comment.

The deal includes commercial properties in Philadelphia and Washington, D.C., and one small shopping center in Doral.

“In what are clearly challenging times for our industry, this transaction stands out as an example of just one of the opportunities that exists to create value for our partners, tenants and employees,” said Jim Heistand, founder and chairman of Eola Capital, in a statement.

- by Darcie Lunsford and Oscar Pedro Musibay | South Florida Business Journal

]]> 2339 2009-09-17 13:00:46 2009-09-17 20:00:46 open open miami-firm-sells-7-6m-square-feet-of-commercial-space publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4186#comments wfw:commentRSS http://zikkir.com/business/4186/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4186 syndication_item_hash 982f26fc3de7f85fc789e39fc5ddf727 Real estate experts: Tenants in charge http://www.ethiopianreview.com/business/2338 Thu, 17 Sep 2009 20:02:23 +0000 http://zikkir.com/business/?p=4189 Office and industrial tenants are clearly in the driver’s seat across North Texas and will continue to be throughout 2010, a panel of commercial real estate experts said Thursday at an event hosted by Jones Lang LaSalle.

Effective office rental rates are down 12 percent in the past year and industrial lease rates have dropped 25 percent as a large supply of both product types and the economic turmoil take a toll on Dallas-Fort Worth, the commercial real estate firm’s top executives said.

“What that means for landlords is, don’t miss a deal,” said Jim Yoder, managing director of office leasing for JLL. “If you’re an owner of a building, you need to make your deal today.”

Yoder expects office vacancy rates across Dallas-Fort Worth, now at about 17 percent, to peak in mid 2010.

Steve Thelen, managing director of tenant representation, said more office tenants are renewing their leases instead of relocating their offices, and concessions by landlords have increased. It will be at least three years before new office development begins again, he said.

“We might not see office cranes until 2012 or 2013,” he said.

Jack Crews, JLL’s managing director of investment sales, projected it will be five to seven years before development starts again in North Texas. However, the now-stalled market for buying and selling office buildings will improve slightly next year, and trade velocity will continue to speed up in 2011 and beyond as the credit market improves, more foreclosures hit the market and buyers and sellers are able to agree on values, he said.

The impact of the $787 billion federal stimulus package is just starting to filter through the economy, said Roger Staubach, JLL’s executive chairman Americas.

The effect of the federal money will help the overall economy for the next 12 to 18 months, but then the economy will have to deal with the huge deficit the stimulus will create, Staubach said in an interview after the panel discussion.

“I worry about whether we’ll really be out of it in two years,” he said.

The D-FW area’s commercial real estate industry will fare better than it did during the collapse in the late 1980s because development has slowed to reasonable levels, reducing the severity of any oversupply, said Paul Whitman, president of JLL’s Dallas office.

North Texas has been grazed by the current national recession, but hasn’t felt its full force, and will bounce back more quickly than other areas, he said.

“We were hurt less than other parts of the United States, and we will come out quicker than other areas because of (corporate) relocations and other factors,” Whitman said.

Staubach urged the gathering of several hundred brokers and top commercial real estate executives to persevere.

“I’ve always believed that adversity reveals genius and prosperity conceals it,” the former Dallas Cowboys quarterback said. “We are in difficult times, but the challenges bring out the best in all of us.”

- by Bill Hethcock | Dallas Business Journal

]]> 2338 2009-09-17 13:02:23 2009-09-17 20:02:23 open open real-estate-experts-tenants-in-charge publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4189#comments wfw:commentRSS http://zikkir.com/business/4189/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4189 syndication_item_hash 9251475727a3df27dc07f7651f7453ac Eola Capital acquires ACP portfolio http://www.ethiopianreview.com/business/2337 Thu, 17 Sep 2009 20:03:28 +0000 http://zikkir.com/business/?p=4192 Eola Capital has acquired the general partnership interests in a portfolio of properties totaling 7.6 million square feet of commercial office space valued at $1.1 billion from America’s Capital Partners.

The acquisition will almost double the Orlando-based real estate investment company in size to 16.1 million square feet of office space and add another $400 million of invested capital under management.

The purchase also expands Eola Capital’s investment presence to include Philadelphia and Washington, D.C.

As part of the deal, America’s Capital Partners co-founder Rudy Touzet will acquire an interest in Eola Capital and join the firm as chief executive officer.

Eola Capital is one of the largest privately held real estate investment firms in the Eastern United States with more than 16.1-million-square-feet of commercial office space.

The company has regional offices in Atlanta, Charlotte, Jacksonville, Miami, New York City and Tampa.

- Orlando Business Journal

]]> 2337 2009-09-17 13:03:28 2009-09-17 20:03:28 open open eola-capital-acquires-acp-portfolio publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4192#comments wfw:commentRSS http://zikkir.com/business/4192/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4192 syndication_item_hash dc330fff24e44cf188cdc1b53be795a1 Southern Co. clean coal tech gets China test http://www.ethiopianreview.com/business/2336 Thu, 17 Sep 2009 20:05:21 +0000 http://zikkir.com/business/?p=4195 Southern Co. reported Thursday its new low-emission coal-based electricity production technology will gets its first commercial testing in China.

The technology is called Transport Integrated Gasification (TRIG) — an advanced integrated gasification combined cycle (IGCC) technology that produces electricity with lower emissions than traditional coal power plants. It also is compatible with lower rank coals that are abundant in China, Southern Co. said.

The technology was developed by Southern Co., KBR Inc., and other partners, including the U.S. Department of Energy, at the DOE’s research facility in Wilsonville, Ala.

The companies will provide Beijing Guoneng Yinghui Clean Energy Engineering Co. Ltd. with licensing, engineering services and proprietary equipment for the implementation of TRIG at a 120-megawatt power plant operated by Dongguan Tianming Electric Power Co. Ltd. in Guandong Province.

At the facility, TRIG technology will be added to an existing gas turbine combined cycle plant so that it can use clean synthetic gas from coal as its fuel for generating electricity, rather than fuel oil.

The plant is expected to begin operation in 2011.

Atlanta-based Southern Co.’s (NYSE: SO) Mississippi Power unit has asked for regulatory approval to build a 582-megawatt plant using TRIG technology in Kemper County, Miss.

- Atlanta Business Chronicle

]]> 2336 2009-09-17 13:05:21 2009-09-17 20:05:21 open open southern-co-clean-coal-tech-gets-china-test publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4195#comments wfw:commentRSS http://zikkir.com/business/4195/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4195 syndication_item_hash 3d31c3b48f037afc8e8b24dc4e672035 Kentucky firm to build Siemens plant in Hutch http://www.ethiopianreview.com/business/2335 Thu, 17 Sep 2009 20:06:46 +0000 http://zikkir.com/business/?p=4198 Lexington, Ky.-based Gray Construction has been named contractor of Siemens Wind Energy’s nacelle production facility in Hutchinson.

The company will build a 300,000-square-foot manufacturing plant that is expected to be complete next fall and a 90,000-square-foot service and repair facility nearby. The plant will be located in the Salt City Business Park.

The first nacelle, which houses the gearbox and other components atop a wind turbine tower, is expected to move out of the plant in December 2010. The plant, according to the company, will produce 650 nacelles per year.

Gray Construction won a competitive bid against other general contractors, nearly all of them from out of state, to build the facility. Construction is expected to start in October.

The company held a ceremonial ground-breaking today that featured Gov. Mark Parkinson.

- by Chris Moon | Wichita Business Journal

]]> 2335 2009-09-17 13:06:46 2009-09-17 20:06:46 open open kentucky-firm-to-build-siemens-plant-in-hutch publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4198#comments wfw:commentRSS http://zikkir.com/business/4198/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4198 syndication_item_hash e6e7087c35caa3a151561e562a563126 Union: S.F. Chronicle sheds 5 more jobs, for total of 11 in recent weeks http://www.ethiopianreview.com/business/2334 Thu, 17 Sep 2009 20:24:55 +0000 http://zikkir.com/business/?p=4201 The Northern California Media Workers Guild said late Wednesday that five members of the San Francisco Chronicle’s editorial department are being laid off, the latest in a series of staffing cuts at the troubled daily newspaper.

The Guild didn’t indicate which editorial staffers were losing their jobs.

Five staffers in the Chronicle’s classified advertising department, four of them Guild members, agreed to job buyouts last week, according to the union, and “at least one voluntary layoff has been accepted in editorial, the Guild said.

That would mean at least 11 jobs have been eliminated this month, after earlier rounds of cuts this year slashed roughly 150 Guild job between March and mid-May.

“Company managers told Guild officers that no additional ‘journalist’ positions are being cut for now, but did not rule out the possibility of additional layoffs in non-news departments,” the Sept. 16 Guild statement said.

The Chronicle’s marketing director and spokesman, Michael Keith, could not immediately be reached for comment. In the past, Keith has said the company doesn’t comment on personnel matters.

The union noted Thursday that Hearst Corp., owner of the Chronicle, threatened to close the paper earlier this year before reaching agreements with the Guild and Teamsters designed to help bring costs into line with shrinking revenues.

“One of the key agreements was an increase in severance to as much as a year’s pay, plus health benefits, for anyone involuntarily losing his or her job,” the statement said.

Earlier this month, the Guild said that further cuts were expected after Labor Day.

Hearst said in late February it would shut or sell the paper “within weeks” without significant concessions from the Guild and Local 853 of the Teamsters, which in April agreed to shed up to 100 jobs.

The Guild now represents about 310 remaining editorial and business-side workers at the Chronicle, Guild rep Carl Hall told the San Francisco Business Times.

The paper’s operating losses for the year are running at more than $1 million a week, including some costs related to the workforce reductions already implemented, the Guild said in late August. Hearst and the Chronicle have used the same $1 million per week number for at least a couple of years to describe continuing losses at the paper, which was once the dominant daily newspaper not only in San Francisco but in the Bay Area and much of Northern California.

Hall said there’s no sign that management has a specific plan to staunch the staff cuts or implement a forward-thinking strategy for the troubled daily. “It’s disheartening to see layoffs without a plan guiding them,” he said.

- by Chris Rauber | San Francisco Business Times

]]> 2334 2009-09-17 13:24:55 2009-09-17 20:24:55 open open union-s-f-chronicle-sheds-5-more-jobs-for-total-of-11-in-recent-weeks publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4201#comments wfw:commentRSS http://zikkir.com/business/4201/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4201 syndication_item_hash 97810e014a1736e5a33bbda0b2b1c407 Builder confidence edges up http://www.ethiopianreview.com/business/2333 Thu, 17 Sep 2009 20:33:35 +0000 http://zikkir.com/business/?p=4204 Builder confidence in newly built, single-family homes edged higher for the third consecutive month in September, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

The index rose one point to 19 this month, its highest level since May 2008.

“Builders are seeing some improvement in buyer demand as a result of the first-time home-buyer tax credit, and low mortgage rates and strong housing affordability have also helped to revive some optimism,” says Joe Robson, chairman of the National Association of Home Builders.

The NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.”

The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”

Two out of three of the HMI’s index components recorded gains in September. The index gauging current sales conditions rose two points to 18, while the index gauging traffic of prospective buyers rose one point to 17. Meanwhile, the index gauging sales expectations for the next six months declined one point to 29.

All four regions posted gains in their HMI readings for September. The biggest improvement was registered in the Midwest, where a three-point gain brought its HMI to 19, the highest level since July 2007. The Northeast posted a two-point gain to 24, the South had a two-point gain to 19 and the West recorded a one-point gain to 18.

Wells Fargo & Co. (NYSE:WFC) is based in San Francisco.

- Charlotte Business Journal

]]> 2333 2009-09-17 13:33:35 2009-09-17 20:33:35 open open builder-confidence-edges-up publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4204#comments wfw:commentRSS http://zikkir.com/business/4204/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4204 syndication_item_hash 50856df756dc3fff5bea26b989dc26b0 Cardin, U.S. senators push for homebuyer tax credit extension http://www.ethiopianreview.com/business/2332 Thu, 17 Sep 2009 20:38:28 +0000 http://zikkir.com/business/?p=4207 U.S. Sen. Benjamin L. Cardin is among a handful of lawmakers pushing for a six-month extension of the $8,000 first-time homebuyers tax credit.

The credit, set to expire Dec. 1., was introduced last year as a way to spark a rebound of the sluggish housing market. Cardin, a Maryland Democrat, along with Sen. John Ensign (R-Nev.), Sen. Harry Reid (D-Nev.), Sen. Johnny Isakson (R.-Ga.) and Sen. Debbie Stabenow (D-Mich.) introduced a bill Wednesday evening pushing the extension.

To date, nearly 530,000 Americans have applied for the tax credit to purchase their first home, according to data from the U.S. Treasury. Around 40 percent of all home buyers in 2009 are eligible for the credit.

“As we are fighting to get our economy back on track, we cannot afford to let lapse an important tool that has had a positive effect on the housing market,” Cardin said in a statement. The ripple effect has been profound, injecting tens of billions of dollars into our national, state and local economies to help stabilize communities and create jobs. But there is more to be done,”

- by Ryan Sharrow | Baltimore Business Journal

]]> 2332 2009-09-17 13:38:28 2009-09-17 20:38:28 open open cardin-u-s-senators-push-for-homebuyer-tax-credit-extension publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4207#comments wfw:commentRSS http://zikkir.com/business/4207/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4207 syndication_item_hash 026c7453f659e41172e89a60a0d32f34 Triangle MLS: Home sales down; prices mixed http://www.ethiopianreview.com/business/2331 Thu, 17 Sep 2009 20:40:01 +0000 http://zikkir.com/business/?p=4210 The number of home sales in the Triangle dipped again in August, with 11 percent fewer homes sold than in to the same month last year.

The 1,957 homes sold in August also represented a 16 percent drop from the number of homes sold in July, according to the latest data from Triangle Multiple Listing Service. The volume of homes sold was worth $450.9 million, which was down by 17 percent from the year prior.

But the median and average sales prices continued to show welcome trends. The average sale price in August was $230,415, up slightly from the average sale price in July of $229,532. However, the August average sale price was still down 7.2 percent from the year prior. The median sale price was around $187,000, a 5.3 percent decline from a year ago.

“This time last year, everything was negative, so now we’re seeing a mixture of stuff,” says residential real estate analyst Stacey Anfindsen. “Whether we’re at the bottom or not, nobody knows, but there are clues that we are searching for the bottom.”

Anfindsen adds that he noticed a spike in home tours in August for houses priced under $250,000, which could be attributed to the popularity of a $8,000 federal tax credit for first-time home buyers. The program is set to expire on Nov. 30. Homes showing at other price points continued to drop. “I’ll be curious to see what happens when that program expires,” he says.

The inventory of homes available for sale also continues to shrink. Triangle MLS listed 17,418 homes for sale in August, which is down 41 percent from the market’s peak in June 2008.

The MLS figures, which are supplied by Anfindsen, cover the Wake, Durham, Orange and Johnston County markets. The Wake numbers were not immediately available, but breakdowns for the other three counties were:

• In Durham County, the number of homes sold dipped by 9.7 percent, to 278 homes. The average home sale price was $206,006, a 5 percent increase from the year prior.

• In Orange County, the number of homes sold was steady with a 2.4 percent decline on the sale of 123 homes. The average sale price was $334,288, which was down by only 2.1 percent from the year prior.

• In Johnston County, the number of homes sold declined by 14.1 percent with the sale of 171 homes. The average sale price was $169,711, a 9.1 percent decline from the year prior.

- by Amanda Jones Hoyle | Triangle Business Journal

]]> 2331 2009-09-17 13:40:01 2009-09-17 20:40:01 open open triangle-mls-home-sales-down-prices-mixed publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4210#comments wfw:commentRSS http://zikkir.com/business/4210/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4210 syndication_item_hash 459cc5d16cd2a0287b41054da0238cb6 McKnight grants $1.8M to Twin Cities groups http://www.ethiopianreview.com/business/2330 Thu, 17 Sep 2009 20:41:58 +0000 http://zikkir.com/business/?p=4213 The McKnight Foundation has awarded $1.8 million in grants to organizations in the Twin Cities, the nonprofit announced Thursday.

The largest award, worth $1.24 million, went to the Local Initiatives Support Corp. The organization is based in New York, but will use the funds to provide training and support to Twin Cities nonprofits.

The Minneapolis-based foundation also awarded Nexus Community Partners, a St. Paul-based community organizing group, $350,000.

The funding awarded to organizations is spread across two years.

Other awards include:

• Minneapolis-based Hope Community, which develops affordable housing, received a grant worth $200,000;

• Harrison Neighborhood Association, Minneapolis, received $120,000 to support fair development of land in North Minneapolis;

• Elliot Park Neighborhood Inc., Minneapolis, received $70,000 for an urban planning and development initiative;

• Peace Foundation, Minneapolis, was awarded $80,000 for community-building efforts; and

• St. Paul-based Summit-University Planning Council received $10,000 to boost residents’ participation in planning for the University Avenue light rail line.

- by Katharine Grayson | Minneapolis / St. Paul Business Journal

]]> 2330 2009-09-17 13:41:58 2009-09-17 20:41:58 open open mcknight-grants-1-8m-to-twin-cities-groups publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4213#comments wfw:commentRSS http://zikkir.com/business/4213/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4213 syndication_item_hash f573899c2d091b51901969332445aa58 Parness leaves Fuller Sotheby’s for Perry & Co. http://www.ethiopianreview.com/business/2329 Thu, 17 Sep 2009 20:43:28 +0000 http://zikkir.com/business/?p=4216 Heather Parness has left Fuller Sotheby’s International Realty to be managing broker at Perry & Co., the Perry firm said Thursday. Both firms are based in Denver.

Harness was formerly Fuller Sotheby’s president and COO.

The managing broker position at Perry was previously held by the residential brokerage firm’s president, R. Don Larrance, who continues in his role as president.

“We look forward to having Heather help us craft our vision of the future of our company, Larrance said in a statement.

In the real estate business for 17 years, Parness started her career in 1992 at Sears and Co. in Greeley. The Colorado native joined Fuller Towne & Country Properties in 2002, and became president 2005. In the past year, she helped Fuller Town & Country transition to a Sotheby’s franchise.

Sotheby’s International Realty Affiliates LLC, started in 1976, is related to the 260-year-old Sotheby’s auction house of New York.

Parness belongs to the Colorado Chapter of the Young President’s Organization (YPO), and is area chair for YPO’s western region. She also sits on the board of Downtown Denver Inc., which is the Downtown Denver Partnership Inc.’s entity that develops and implements programs to enhance downtown’s business, cultural and residential areas.

Away from work, Parness likes to travel and go scuba diving.

Started in 1971, Perry & Co. is a privately held, boutique residential real estate firm that serves metro Denver. The company has a headquarters office in Denver’s Cherry Creek neighborhood at 101 S. Madison St., as well as satellite locations at 2902 E. Third Ave. in Cherry Creek North and at 8000 E. Belleview Ave. in Greenwood Village.

- Denver Business Journal

]]> 2329 2009-09-17 13:43:28 2009-09-17 20:43:28 open open parness-leaves-fuller-sotheby%e2%80%99s-for-perry-co publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4216#comments wfw:commentRSS http://zikkir.com/business/4216/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4216 syndication_item_hash f34f62afbc6c21a0fdf81369a18cfdb5 Kings preseason tickets on sale Saturday http://www.ethiopianreview.com/business/2328 Thu, 17 Sep 2009 20:47:17 +0000 http://zikkir.com/business/?p=4219 Individual game tickets go on sale Saturday for the Sacramento Kings’ three home preseason games.

The games are: Oct. 7 against the Portland Trail Blazers, Oct. 17 vs. the Golden State Warriors and Oct. 23 against the Utah Jazz. All three games start at 7 p.m. at Arco Arena.

The preseason games will give fans a first look at new rookies Tyreke Evans, Omri Casspi and Jon Brockman; new players Sean May and Sergio Rodriguez; and new head coach Paul Westphal.

Individual tickets for the preseason games go on sale Saturday at 10 a.m. Tickets are available online at kings.com, by calling Ticketmaster at 800-745-3000, and at Sacramento-area Ticketmaster outlets. Tickets also can be purchased at the Arco Arena Box Office from 10 a.m. to 6 p.m. Monday thru Friday from 10 a.m. to 6 p.m., and from 10 a.m. to 4 p.m. on Saturdays.

The Kings, which are marking their 25th year in Sacramento, open the 2009-10 season on the road Oct. 28 against the Oklahoma City Thunder. Sacramento’s season home opener is Nov. 2, when the Kings take on the Atlanta Hawks, led by former Kings’ guard Mike Bibby.

The Kings hired Westphal as head coach in June.

- by Kelly Johnson | Sacramento Business Journal

]]> 2328 2009-09-17 13:47:17 2009-09-17 20:47:17 open open kings-preseason-tickets-on-sale-saturday publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4219#comments wfw:commentRSS http://zikkir.com/business/4219/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4219 syndication_item_hash f5a83e11f450497f42bca376572ea44a Energy audit could mean more than $30 million in savings for U of L http://www.ethiopianreview.com/business/2327 Thu, 17 Sep 2009 20:50:02 +0000 http://zikkir.com/business/?p=4222 The University of Louisville expects to realize more than $30 million in savings on its Belknap Campus by 2024 as the result of a comprehensive energy conservation and sustainability project that will be launched there this fall.

The project, which aims to significantly reduce the university’s carbon footprint, grew out of an energy audit performed by the Louisville office of Buffalo Grove, Ill.-based Siemens Building Technologies Inc. The yearlong audit started in July 2008.

Siemens worked with university officials to conduct the audit, develop and design a package of facility improvements and calculate potential savings.

An audit of the U of L Health Sciences Campus is slated to begin later this year.
Company to be paid from energy savings

Siemens will begin work Oct. 1 on a $21.7 million “performance contract” with the university that will include heating, ventilation and air conditioning upgrades, lighting retrofits, building and facility improvements and water-conservation strategies on the Belknap Campus, according to Michael Azzara, business development manager for the company in Louisville.

The project will be completed over 14 months, he said.

The improvements will result in an annual savings to the university of $2.3 million in energy, maintenance and repair costs over the course of 13 1/2 years, beginning in December 2010, when the work is completed.

The project also will reduce Belknap Campus’ annual utility budget by 26 percent, according to the Siemens audit. That budget currently is $8.4 million per year, according to information from U of L and the company.

U of L will pay Siemens using the savings realized from the upgrades. The company has agreed to pay the difference if the energy savings don’t cover the costs of the improvements.
Ramsey cites importance to students

U of L president James Ramsey said the project is good news on two fronts.

It will allow the university to continue its “commitment to the environment and sustainability” and enable U of L to upgrade its facilities during a tough financial period.

Ramsey said he believes the project also is important to students, who increasingly press the university to pursue green initiatives.

“This is something that is very important to young people today,” he said. “We need to be a leader in this area. We need to be setting an example.”
Electricity use to be cut by 23 percent

Siemens has completed similar energy audits for Northern Kentucky University and Eastern Kentucky University, according to Azzara. He called the U of L audit “one of the largest” the company has undertaken in the region.

The energy-efficiency work on the Belknap Campus will cut electricity consumption by 23 percent and natural gas and coal consumption by 38 percent, according to Siemens.

The energy saved will result in an overall reduction of greenhouse gas emissions of 55.7 million pounds, the company said.

- by John R. Karman III | Business First of Louisville

]]> 2327 2009-09-17 13:50:02 2009-09-17 20:50:02 open open energy-audit-could-mean-more-than-30-million-in-savings-for-u-of-l publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4222#comments wfw:commentRSS http://zikkir.com/business/4222/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4222 syndication_item_hash 042be09d0c2ec1edc2ab8d0854119d5a Md. Board of Public Works awards $119M in stimulus-funded grants http://www.ethiopianreview.com/business/2326 Thu, 17 Sep 2009 20:52:41 +0000 http://zikkir.com/business/?p=4225 The Maryland Board of Public Works voted Thursday to award more than $119 million in federal stimulus money for clean-water grants and loans.

That includes more than $800,000 to aid Baltimore developer Patrick Turner’s $1.4 billion Westport development in South Baltimore.

The board, led by Gov. Martin O’Malley, spread the federal funds across all of Maryland’s 24 jurisdictions, selecting projects it believes will help create hundreds of jobs, protect public health and improve water quality and drinking water.

“Today’s recovery funding also allows us to provide additional grants for worthy ‘green infrastructure’ and water and energy efficiency projects,” O’Malley said in a statement.

The U.S. Environmental Protection Agency awarded the Maryland Department of the Environment $121.6 million in June to fund Maryland water quality and drinking water projects. State environmental officials received more than $3.7 billion in requests for that money and was forced to delay the selection of award recipients from a planned March 13 announcement because of the large number of hopeful recipients who applied.

Baltimore was tapped to receive $15.4 million in stimulus-backed grants and loans for various projects. Among them was a $6 million grant for improvements to the Patapsco Wastewater Treatment Plant; another $6 million grant for improvements to the Montebello Plat 2 Water Reservoir; and another $2.6 million to retrofit toilets, sinks and urinals in the city with low-flow water technology.

Turner’s Westport project was also a beneficiary of the city’s share of stimulus money. Westport, a mixed-use development along the Middle Branch of the Patpasco River, will receive $229,724 in grant money to create a dryswale at the project and another $576,380 in grants to create waterfront tidal wetlands.

Also in Greater Baltimore:

•Anne Arundel County was awarded $5.3 million in stimulus grants and loans for various projects including storm water restoration at Clements Creek and a living shoreline project benefitting the Dennis Point Home Owner’s Association.

• Baltimore County was awarded a $2.25 million grant to enhance its Pleasure Island Beach shoreline;

•Harford County was awarded a $1.6 million in loan money for various projects including improvements to its wastewater treatment plant;

• Howard County was awarded $3.1 million in grants and loans for various projects including sewer construction and stream restoration projects.

- by Daniel J. Sernovitz | Baltimore Business Journal

]]> 2326 2009-09-17 13:52:41 2009-09-17 20:52:41 open open md-board-of-public-works-awards-119m-in-stimulus-funded-grants publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4225#comments wfw:commentRSS http://zikkir.com/business/4225/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4225 syndication_item_hash 27c484bb2451753e1a8f92dc5e88e1dd Panel: Birmingham could be a green epicenter http://www.ethiopianreview.com/business/2325 Thu, 17 Sep 2009 20:56:39 +0000 http://zikkir.com/business/?p=4228 Birmingham should take advantage of its central location and become the epicenter of green for the South, which could produce a plethora of jobs and lure manufacturers, a panel of experts said Thursday morning.

But first the elected officials, business leaders and professionals need to change their mindset toward the environmental movement, said four panelists during the Birmingham Business Journal’s “Going Green: Sustainability in Tough Economic Times” at the Harbert Center.

The Southeast is the fastest-growing area for green construction, said panelist James Smith, CEO of Green Building Focus. That is mostly because it is so far behind. However, Birmingham could tap into that growth.

During the recession, interest in the green frenzy has slacked a little, but there are plenty of green initiatives businesses can take advantage of to help save money, panelists said.

“There’s still a lot of hunger out there for information,” said panelist Fred Keith, president of HKW Associates.

While a number of businesses are reprioritizing to cope with economic woes, “I think (going green) will come back strong and continue to grow as we come out of this recession,” Keith said.

The room was filled with business professionals listening in on hot button issues from panelists Chris Miller, co-founder of Piedmont Green Building Solutions LLC, Lawrence Davenport, professor of Biological & Environmental Sciences at Samford University, Smith and Keith.

Creating an energy-efficient work environment is a small effort businesses can implement to stay on top of going green.

Installing programmable thermostats, green-friendly light bulbs and banning Styrofoam cups from the breakroom can help companies keep more money in their pockets, the experts said.

“It’s very basic, very inexpensive and anybody can do it,” Smith said.

Also, simply turning out the lights when the last person leaves can help lower expenses, Miller said. Take a drive through downtown Birmingham any given night and it is evident that businesses aren’t taking advantage of lowering their light bill because many of them are “lit up like Christmas trees,” he said.

Birmingham-area business owners should focus on improving the city’s inner core instead of building in outlying areas, Miller said. It’s puzzling as to why a number of businesses build new facilities outside Birmingham on undeveloped land when there are plenty of opportunities to establish facilities in developed areas inside the city, he said.

“I wonder why people build outside of downtown when you already have this infrastructure in place,” he said. “It’s all about mindset and a culture change.”

Davenport pointed to Vestavia Hills’ use of forest land to build a new library when it could have been built in the place of empty storefronts nearby.

- by Crystal Jarvis | Birmingham Business Journal

]]> 2325 2009-09-17 13:56:39 2009-09-17 20:56:39 open open panel-birmingham-could-be-a-green-epicenter publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4228#comments wfw:commentRSS http://zikkir.com/business/4228/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4228 syndication_item_hash 40d448f71cc35ba6b0e27c3e8d225063 Commerce Department awards $1.7 million to West San Antonio office project http://www.ethiopianreview.com/business/2362 Thu, 17 Sep 2009 21:03:36 +0000 http://zikkir.com/business/?p=4231 U.S. Commerce Secretary Gary Locke said Thursday that the Avenida Guadalupe Association will receive a $1.75 million grant toward the construction of its Avenida Promesa office project.

The money will be used to help build Phase I of the commercial development project. The grant will be furnished through the Economic Development Administration, an agency within the U.S. Department of Commerce.

“This grant will help attract new jobs and businesses by increasing the availability of office space to boost revitalization efforts in the Guadalupe commercial corridor,” Locke says.

The Avenida Guadalupe Association is a nonprofit organization that is working to revitalize San Antonio’s West Side.

- San Antonio Business Journal

]]> 2362 2009-09-17 14:03:36 2009-09-17 21:03:36 open open commerce-department-awards-1-7-million-to-west-san-antonio-office-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4231#comments wfw:commentRSS http://zikkir.com/business/4231/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4231 syndication_item_hash bfa3997ea25ddeadf58fadc301dbcf0d Orbital Sciences opens new Chandler building http://www.ethiopianreview.com/business/2361 Thu, 17 Sep 2009 21:08:14 +0000 http://zikkir.com/business/?p=4234 Orbital Sciences Corp. opened a new building in Chandler, adding about 83,000 square feet of space at the campus.

Orbital (NYSE:ORB) will use the building for its launch vehicle design, engineering, manufacturing and program management. It brings the total amount of space for Orbital’s local operations to about 600,000 square feet.

Orbital leases the facility from W.P. Carey & Co., and recently signed an 11-year renewal while the new building was under construction.

“For over 20 years we have enjoyed a very business-friendly environment in Chandler,” said David W. Thompson, Orbital’s chairman and CEO. “We are most appreciative of the city’s responsiveness to our expansion plan. In turn, we are very pleased to continue to grow in the area, adding to the dynamic local business environment and generating significant economic benefits for the community.”

Dulles, Va.-based Orbital plans to add two more buildings at the campus with more than 150,000 square feet. When finished, the 48-acre campus is expected to house about 2,200 employees. The company currently has 1,450 full- and part-time employees at the site.

- Phoenix Business Journal

]]> 2361 2009-09-17 14:08:14 2009-09-17 21:08:14 open open orbital-sciences-opens-new-chandler-building publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4234#comments wfw:commentRSS http://zikkir.com/business/4234/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4234 syndication_item_hash c837bb98de2031c28e52d02deeb0ad5e FelCor hopes to raise $530M in notes sale http://www.ethiopianreview.com/business/2360 Thu, 17 Sep 2009 21:10:02 +0000 http://zikkir.com/business/?p=4237 Hospitality real estate investment trust FelCor Lodging Trust Inc. said Thursday its subsidiary FelCor Limited Partnership has plans to offer senior notes, subject to market conditions, that have the potential of bringing in $530 million in gross proceeds.

The Irving-based company said net proceeds from the sale will be used to fund the company’s previous offer in which it said it would acquire all of its $215 million aggregate principal amount in one set of senior secured notes due in 2011 and $300 million on another set of senior secured notes due the same year.

Any remaining cash will be used to cover general corporate purposes, the company said in a statement.

- Dallas Business Journal

]]> 2360 2009-09-17 14:10:02 2009-09-17 21:10:02 open open felcor-hopes-to-raise-530m-in-notes-sale publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4237#comments wfw:commentRSS http://zikkir.com/business/4237/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4237 syndication_item_hash d1a2cac1df9cf189c1f7d35b5782d83e Eola buys Peachtree Center and more http://www.ethiopianreview.com/business/2359 Thu, 17 Sep 2009 21:14:14 +0000 http://zikkir.com/business/?p=4240 Eola Capital Inc. reported Thursday it bought general partnership interests in a portfolio of 7.6-million-square-feet of commercial office space worth $1.1 billion from America’s Capital Partners.

Financial terms were not disclosed. The portfolio includes Peachtree Center (Marquis One and Two, Harris Tower, International Tower, North Tower, South Tower — a total of 2.4 million square feet); 10 Tenth Street, the Cornerstone at Peachtree and Two Ravinia Drive in Atlanta.

Orlando, Fla.-based Eola Capital said the deal will add another $400 million of invested capital it has under management. It also doubles the amount of office space in its portfolio to about 16.1 million square feet.

The deal grows Eola Capital’s principals’ investment presence in the Northeast to include Philadelphia, Pa., and the Washington, D.C. metro area.

“In what are clearly challenging times for our industry, this transaction stands out as an example of just one of the opportunities that exists to create value for our partners, tenants and employees,” said Jim Heistand, founder and chairman of Eola Capital, in a statement.

- Atlanta Business Chronicle

]]> 2359 2009-09-17 14:14:14 2009-09-17 21:14:14 open open eola-buys-peachtree-center-and-more publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4240#comments wfw:commentRSS http://zikkir.com/business/4240/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4240 syndication_item_hash 5665bf5c54947df4a3c77aa0ea4c0684 Foreclosure sale set for 55 West http://www.ethiopianreview.com/business/2358 Thu, 17 Sep 2009 21:15:14 +0000 http://zikkir.com/business/?p=4243 The 34-story 55 West on the Esplanade condominium tower in downtown Orlando is scheduled to be sold in a court-ordered foreclosure auction on Oct. 16.

SNSPF Interim Finance B.V., the Dutch lender that financed the project, completed foreclosure on the tower this week. SNSPF is claiming that the developer, 55 West on the Esplanade Joint Venture, owed $239 million in construction financing.

SNSPF took control of the project last year. It filed to foreclose in January on Euro Ameican Advisors, the general partner in 55 West on the Esplanade Joint Venture. The lender brought in another developer to complete work on the tower, which was orgininally designed to contain 405 condos.

Faced with a moribund condominium market, SNSPF said this summer it would lease units in the building.

Lenders are able to apply what they are owed as credit in foreclosure auctions, making them the likely high bidder in cases where a property is worth less than the debt. In the 55 West sale, SNSPF would be the likely buyer.

- Orlando Business Journal

]]> 2358 2009-09-17 14:15:14 2009-09-17 21:15:14 open open foreclosure-sale-set-for-55-west publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4243#comments wfw:commentRSS http://zikkir.com/business/4243/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4243 syndication_item_hash bc232e82057c407c70ca16b05580a6de Bay Area home sales stay on upward trend http://www.ethiopianreview.com/business/2357 Thu, 17 Sep 2009 21:16:00 +0000 http://zikkir.com/business/?p=4247 Bay Area home sales bucked the seasonal norm and fell last month from July though they remained higher than a year ago for the 12th consecutive month, a real estate information service reported Thursday

San Diego-based MDA DataQuick said the region’s overall median sale price also declined as a greater portion of sales occurred in more affordable areas.

In Santa Clara County 1,736 homes were sold, up 5.30 percent from August 2008. The median price was $451,000, down 18.80 percent from last August’s $555,500 median.

In San Mateo County 606 homes were sold, 8.20 percent up, while the median price was $559,00, 11.60 percent down.

In San Francisco 514 homes were sold, down 2.80 percent. The median price of $635,000 was down 12.40 percent.

A total of 7,518 new and resale houses and condos closed escrow in the nine-county Bay Area last month. That was down 14.3 percent from 8,771 in July and up 4.0 percent from 7,232 in August 2008, according to MDA DataQuick.

Last month’s sales were 24 percent below the average number of sales — 9,886 — for the month of August since 1988, when DataQuick’s stats begin. August sales have ranged from a low of 6,688 in 1992 to a high of 13,940 in 2004.

The median price paid for all new and resale houses and condos last month fell to $360,000, down 8.9 percent from $395,000 in July and down 19.5 percent from $447,000 in August 2008.

Despite the August median’s plunge from July, it was the second-highest for any month since last October, when it was $375,000. August’s median was 24.1 percent higher than the current cycle’s low of $290,000 in March this year, but it was 45.9 percent below the July 2007 peak median of $665,000.

Across the Bay Area, sales of existing single-family detached houses above $500,000 fell to 34 percent of all existing house sales in August, down from 36.2 percent in July and down from 44.7 percent in August 2008. Sales of existing houses above $800,000 fell to 12.2 percent of sales in August, down from 14.1 percent in July and 18.9 percent a year earlier.

- Silicon Valley / San Jose Business Journal

]]> 2357 2009-09-17 14:16:00 2009-09-17 21:16:00 open open bay-area-home-sales-stay-on-upward-trend publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4247#comments wfw:commentRSS http://zikkir.com/business/4247/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4247 syndication_item_hash 87de54400f7e3f856b39618cd733f284 Terracon Consultants buys Gallet & Associates http://www.ethiopianreview.com/business/2356 Thu, 17 Sep 2009 21:17:12 +0000 http://zikkir.com/business/?p=4250 Engineering consulting firm Terracon Consultants Inc. has bought Gallet & Associates Inc. of Birmingham, Ala., strengthening Terracon’s presence in the Southeast.

Financial terms weren’t disclosed.

Olathe-based Terracon is an employee-owned engineering consulting firm with more than 2,500 employees. It provides geotechnical, environmental, construction materials and facilities services from more than 100 offices in 36 states.

Gallet provides geotechnical, environmental, construction and materials engineering and testing and facilities services. The company was founded 20 years ago and has offices in Alabama, Mississippi, Georgia, Florida and Tennessee.

Terracon said in a release that it is keeping Gallet’s nearly 150 employees, including professional engineers, geologists, environmental scientists, field engineering and environmental technicians and administrative support staff. Gallet will keep its business name.

Terracon ranks No. 11 on the Kansas City Business Journal’s list of area engineering firms, based on number of area professional engineers, with 26.

- Kansas City Business Journal

]]> 2356 2009-09-17 14:17:12 2009-09-17 21:17:12 open open terracon-consultants-buys-gallet-associates publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4250#comments wfw:commentRSS http://zikkir.com/business/4250/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4250 syndication_item_hash 52c82d036e07490f5b070950c306e197 Wisconsin August unemployment at 8.4% http://www.ethiopianreview.com/business/2355 Thu, 17 Sep 2009 21:18:02 +0000 http://zikkir.com/business/?p=4253 Wisconsin’s seasonally unadjusted unemployment rate for August was 8.4 percent, down 0.4 percentage points from July’s 8.8 percent and continuing a downward trend from 9.2 percent in June.

The state, however, continued to lose jobs. The unemployment report showed 3,300 fewer jobs than in July and 112,000 fewer than a year ago.

“We continue to see signs elsewhere of an economic turnaround,” Wisconsin Department of Workforce Development Secretary Roberta Gassman said. “At the same time, we know many people are out of work. We are committed to doing all that we can to keep the economy moving forward and help job seekers and displaced workers gain employment.”

The national rate for August was 9.6 percent, down 0.1 percentage point from July’s 9.7 percent. The national rate for August is 3.5 percentage points higher than the 6.1 percent recorded in August 2008.

The state showed a month-over-month increase in manufacturing jobs, the numbers of which grew by 3,000. Construction jobs declined by 300, while service producers lost 6,000 jobs over the month.

- The Business Journal of Milwaukee

]]> 2355 2009-09-17 14:18:02 2009-09-17 21:18:02 open open wisconsin-august-unemployment-at-8-4 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4253#comments wfw:commentRSS http://zikkir.com/business/4253/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4253 syndication_item_hash 142127e166edc137c15ad69aeb817fde Illinois jobless rate drops slightly http://www.ethiopianreview.com/business/2354 Thu, 17 Sep 2009 21:19:12 +0000 http://zikkir.com/business/?p=4256 The unemployment rate in Illinois dropped 0.4 percent to 10 percent in August, according to seasonally adjusted figures released Thursday by the Illinois Department of Employment Security.

The three-month moving average remained at 10.2 percent, its highest level since 1983.

Illinois payroll employment declined by 19,200 jobs in August. Although the pace of job loss has slowed, the number of jobs has been in the 15,000 to 20,000 range for four consecutive months.

Manufacturing posted its first gain with 2,100 jobs in 19 months and its largest gain in 38 months, part of which could be attributed to the cash for clunkers program.

The construction sector added 500 jobs, and the information industry gained 900 jobs, following 11 straight months of losses. E

Employment in the trade and transportation sector dropped by 6,200 jobs in August, its biggest loss in eight months. Payroll jobs in professional and business services decreased 5,400.

Nationally, the August unemployment rate increased 0.3 to 9.7 percent, its highest level in 26 years.

- St. Louis Business Journal

]]> 2354 2009-09-17 14:19:12 2009-09-17 21:19:12 open open illinois-jobless-rate-drops-slightly publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4256#comments wfw:commentRSS http://zikkir.com/business/4256/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4256 syndication_item_hash 5d3be07e32fbe5509d3bc00ec70986c9 N.C. info-tech recovery on hold http://www.ethiopianreview.com/business/2353 Thu, 17 Sep 2009 21:20:10 +0000 http://zikkir.com/business/?p=4259 The number of information-technology job openings in North Carolina grew less than 1 percent in August from July, signaling that recovery in the IT job market is still on hold.

According to the North Carolina Technology Association, the state had 1,070 IT job openings in August, up slightly from 1,060 in July.

The number of job openings is down 65 percent from a year earlier.

The only industry showing growing demand for IT jobs is financial services, which has increased over the past four months. All other industries remained flat or have cut positions.

- by Frank Vinluan | Charlotte Business Journal

]]> 2353 2009-09-17 14:20:10 2009-09-17 21:20:10 open open n-c-info-tech-recovery-on-hold publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4259#comments wfw:commentRSS http://zikkir.com/business/4259/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4259 syndication_item_hash caa3afdb119a14088d45f938439c4357 Mattel trims more Fisher-Price jobs http://www.ethiopianreview.com/business/2352 Thu, 17 Sep 2009 21:20:57 +0000 http://zikkir.com/business/?p=4262 Mattel Inc. said Thursday that as part of a continuing restructuring the company is reducing its workforce, including about 20 positions at Fisher-Price in East Aurora.

The California-based toy company (NYSE: MAT) said the total number of job cuts at all of its operations will be less than 80. The reductions include a combination of layoffs, elimination of open positions, attrition and retirements.

In November 2008, Mattel cut some 70 jobs at Fisher-Price, which last year employed more than 800 workers.

- Business First of Buffalo

]]> 2352 2009-09-17 14:20:57 2009-09-17 21:20:57 open open mattel-trims-more-fisher-price-jobs publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4262#comments wfw:commentRSS http://zikkir.com/business/4262/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4262 syndication_item_hash 9d19a88750dd65cbb3ac4026016ed92b Kansas firm buys Birmingham’s Gallet & Associates http://www.ethiopianreview.com/business/2351 Thu, 17 Sep 2009 21:22:52 +0000 http://zikkir.com/business/?p=4265 Birmingham’s Gallet & Associates Inc. has been purchased by a Kansas-based engineering consulting firm.

Terracon, an employee-owned firm based in Olathe, Kan., has acquired the local engineering firm for an undisclosed sum, said a news release.

Terracon said it will retain Gallet’s 150 employees in Alabama, Mississippi, Georgia, Florida and Tennessee and continue to use the acquired company’s name.

“Our success is the result of efficient project management and personnel with a commitment of responsiveness to clients, high ethical values and quality services,” said Alain Gallet, CEO of Gallet. “Terracon is an outstanding firm and this is a tremendous opportunity for both of us.”

With the purchase of Gallet, Terracon will strengthen its presence in the Southeast, said the company. Terracon has more than 2,500 employees in more than 100 offices in 36 states around the country. It, too, provides geotechnical, environmental, construction materials and facilities services to a wide variety of clients.

- by Lauren B. Cooper | Birmingham Business Journal

]]> 2351 2009-09-17 14:22:52 2009-09-17 21:22:52 open open kansas-firm-buys-birmingham%e2%80%99s-gallet-associates publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4265#comments wfw:commentRSS http://zikkir.com/business/4265/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4265 syndication_item_hash b0c3f015a58aa297a30af48cb66ed0b1 US Airways boosts business-class service http://www.ethiopianreview.com/business/2350 Thu, 17 Sep 2009 21:24:20 +0000 http://zikkir.com/business/?p=4268 US Airways Group Inc., which operates its largest hub at Charlotte/Douglas International Airport, is upgrading its business-class services with seats that recline flat on trans-Atlantic flights.

The new Envoy Suite service also will offer new on-demand in-flight entertainment systems.

“We’re excited about bringing this industry-leading concept to our customers,” says Andrew Nocella, senior vice president of marketing and planning. “The innovative cabin layout and thoughtful design of the Envoy Suite allows for greater comfort and functionality for our international travelers.”

The Envoy Suite will debut in December, with 15 planned aircraft installations to be complete by the summer of 2012.

US Airways (NYSE:LCC) is based in Tempe, Ariz. The carrier operates 3,200 flights per day to more than 200 destinations in the Americas and Europe.

- Charlotte Business Journal

]]> 2350 2009-09-17 14:24:20 2009-09-17 21:24:20 open open us-airways-boosts-business-class-service publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4268#comments wfw:commentRSS http://zikkir.com/business/4268/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4268 syndication_item_hash f8279f2110f883ee7df3afbaf96e9a86 Ambassadors selling 230-foot paddleboat http://www.ethiopianreview.com/business/2349 Thu, 17 Sep 2009 21:25:01 +0000 http://zikkir.com/business/?p=4271 Ambassadors International Inc. said it’s selling its 230-foot-long paddleboat, Queen of the West, to an affiliate of American Cruise Lines for an undisclosed price.

Ambassadors International (NASDAQ: AMIE), which is moving its headquarters to Seattle from California to concentrate on its Windstar Cruises division, recently operated the 142-guest paddleboat on the Columbia and Snake rivers from Portland, Ore. Blue Spruce LLC, a subsidiary of Connecticut-based American Cruise Lines, is buying the boat.

The Queen of the West has 71 staterooms, four decks, a dining room, show room, lounge and bar and grill.

- Puget Sound Business Journal (Seattle)

]]> 2349 2009-09-17 14:25:01 2009-09-17 21:25:01 open open ambassadors-selling-230-foot-paddleboat publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4271#comments wfw:commentRSS http://zikkir.com/business/4271/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4271 syndication_item_hash ed2d6f510eb5fdf42da5035ce814c2cb American Airlines to cut nine RDU flights, 3 destinations http://www.ethiopianreview.com/business/2348 Thu, 17 Sep 2009 21:26:09 +0000 http://zikkir.com/business/?p=4274 American Airlines will cut nine daily flights at Raleigh-Durham International Airport and end service to three cities as part of a larger plan announced Thursday to “eliminate unprofitable flying.”

After the cutbacks, RDU will have 44 daily flights to seven U.S. airports and London’s Heathrow Airport, said American’s parent, Fort Worth, Texas-based AMR Corp.

American will no longer serve three cities from RDU: St. Louis; Hartford, Conn.; and Columbus, Ohio.

The flights will be eliminated by the summer of 2010. If no other airlines fill the void, RDU would be left with no nonstop flights to any of the three destinations.

Those three citis account for seven of the flights being dropped – three each to St. Louis and Hartford and one to Columbus. American also will cut two flights to Boston but will retain service to the city.

AMR Corp. (NYSE: AMR) is the parent company for American Airlines and its commuter carrier, American Eagle. American Eagle handles most of the flights being cut at RDU, though the St. Louis service was served by third party Chautaugua Airlines under the brand name AmericanConnection, according to American.

After the cuts, American will offer multiple flights each day to six U.S. cities, as follows:

• Eleven daily flights to New York, with six going to John F. Kennedy Airport and five going to LaGuardia;

• Eight to Washington, D.C.,

• Six to Boston;

• Five to Dallas/Fort Worth

• Five to Chicago;

• Three to Miami

The airline also will continue its one daily flight between RDU and London.

AMR announced the reductions as part of a larger plan to raise and borrow $2.9 billion, and add flights in its hubs in Chicago, Dallas, Miami and New York. American called those four cities, along with Los Angeles, the “cornerstones” of its network.

The $2.9 billion includes $1 billion in cash from the sale of AAdvantage frequent flyer miles to Citi; $280 million in cash under a loan facility from GE Capital Aviation Services secured by owned aircraft; and $1.6 billion in sale-leaseback financing commitments from GECAS for Boeing 737s previously ordered by American.

American said it would offer affected employees both buyouts and opportunities to relocate so it expects layoffs will be “minimal.” The company did not say how many people could lose their jobs at RDU, where AMR employs more than 350 people.

“We are still working to determine the exact impact to our employees,” said American spokeswoman Andrea Huguely, “but we anticipate that the impact will be minimal.”

One piece of good news for some of the RDU workers is that American Eagle is planning to do more maintenance work on its planes. Asked if American Eagle employs maintenance workers at RDU who could benefit from the extra time to be spent maintaining Eagle, Huguely said, “Yes, American Eagle does do maintenance in RDU. More work is always good. ”

- by Jeff Drew | Triangle Business Journal

]]> 2348 2009-09-17 14:26:09 2009-09-17 21:26:09 open open american-airlines-to-cut-nine-rdu-flights-3-destinations publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4274#comments wfw:commentRSS http://zikkir.com/business/4274/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4274 syndication_item_hash 2566827d9da76453dddfcf9494d8e4fa American to launch direct service between New York’s JFK and Austin-Bergstrom http://www.ethiopianreview.com/business/2347 Thu, 17 Sep 2009 21:27:08 +0000 http://zikkir.com/business/?p=4277 American Airlines parent company AMR Corp. (NYSE: AMR) is announcing plans Thursday to expand its service in some areas as a result of $2.9 billion in new financing it has recently secured.

One addition to the airline’s lineup is a new direct flight between Austin-Bergstrom International Airport and New York’s John F. Kennedy International Airport. That new flight is part of the airline’s move to increase its flights out of hubs such as Dallas-Fort Worth, Chicago, New York and Los Angeles.

The airline said the infusion will also help it make improvements to its fleet.

American did not give a start date for the new Austin-New York service. Currently, Jet Blue is the only airline that offers non-stop flights to the New York City area.

“Today’s announcement positions our company well to face today’s industry challenges and allows us to remain focused on the future and on returning to profitability,” said Gerard Arpey, American’s chairman and CEO.

- Austin Business Journal

]]> 2347 2009-09-17 14:27:08 2009-09-17 21:27:08 open open american-to-launch-direct-service-between-new-york%e2%80%99s-jfk-and-austin-bergstrom publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4277#comments wfw:commentRSS http://zikkir.com/business/4277/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4277 syndication_item_hash b6c32150ac48cf4e419e52e8e60f8914 Dayton Airport gets $5.6M for security systems http://www.ethiopianreview.com/business/2346 Thu, 17 Sep 2009 21:28:02 +0000 http://zikkir.com/business/?p=4280 The Dayton International Airport has landed $5.6 million in federal funds to upgrade security systems.

The money — from the Federal Aviation Administration — will be used to install an integrated system that includes new cameras and access controls, according to airport spokesperson Linda Hughes.

Airport officials have been evaluating bids for the project and expect to award the work within a few weeks.

In addition to the money for security upgrades, the airport received about $300,000 to buy land as part of a noise mitigation program.

Dayton was one of five airports across the state of Ohio that received FAA funding for various improvement projects, according to a news release U.S. Sen. George Voinovich. The others include Cleveland Hopkins International Airport ($3 million), Port Columbus International Airport ($473,000), Pike County Airport ($304,000) and Marion Municipal Airport ($190,000).

“It is critical that we continue to improve the safety and efficiency of our airports, as well as overall transportation infrastructure,” Voinovich said in the release.

Earlier this month, the airport announced it will receive $10 million in stimulus funds for a new baggage handling system. That project, with enhanced explosive detection technology, is expected to begin in early 2010 and be complete by April, 2011.

- Dayton Business Journal

]]> 2346 2009-09-17 14:28:02 2009-09-17 21:28:02 open open dayton-airport-gets-5-6m-for-security-systems publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4280#comments wfw:commentRSS http://zikkir.com/business/4280/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4280 syndication_item_hash 6b7c5240db29ff74f685cfae89340180 State awards ecotourism contract to EcoNewMexico http://www.ethiopianreview.com/business/2345 Thu, 17 Sep 2009 21:29:14 +0000 http://zikkir.com/business/?p=4283 The New Mexico Tourism Department has awarded a contract to administer the state’s new ecotourism program to EcoNewMexico LLC of Santa Fe.

Gov. Bill Richardson approved a special $250,000 appropriation to fund the initiative for fiscal year 2010.

The $242,500 contract runs through June 30, 2010. It may be extended for up to three additional one-year periods at the discretion of the Tourism Department, based on funding availability and other factors.

EcoNewMexico’s proposal was one of 11 received by the state through a request for proposals. The company will plan, coordinate, implement and administer the ecotourism program.

The work will include taking an inventory of ecotourism assets throughout the state and educating communities on ecotourism, including teaching marketing skills related to that sector. EcoNewMexico will work with state agencies and other public and private entities.

Michael Cerletti, secretary of the Tourism Department, said eco-tourists spend more money, visit longer and are seeking “authentic, hands-on experiences.”

Jennifer Hobson, deputy secretary of the Tourism Department, said EcoNewMexico will help the department create new partnerships that will lead to new economic opportunities in communities around the state.

EcoNewMexico is owned by Chip and Sandy Cunningham. They also own Uncharted Outposts, which manages a portfolio of tourism destinations and other eco- and community-driven projects around the world.

- New Mexico Business Weekly

]]> 2345 2009-09-17 14:29:14 2009-09-17 21:29:14 open open state-awards-ecotourism-contract-to-econewmexico publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4283#comments wfw:commentRSS http://zikkir.com/business/4283/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4283 syndication_item_hash e6d6d8349e3c0b95de32c80691b724b2 RDU traffic down 6% in August http://www.ethiopianreview.com/business/2344 Thu, 17 Sep 2009 21:30:25 +0000 http://zikkir.com/business/?p=4286 The number of enplaned passengers at Raleigh-Durham International Airport dropped 6 percent last month.

Just under 400,000 passengers boarded flights at RDU in August, compared to 425,911 in the same month a year ago. The airport’s governing authority released the preliminary statistics at its monthly meeting Sept. 17.

The number of enplaned passengers at the airport through the first eight months of the year clocked in at 2.98 million – an 11 percent decline from the same period of 2008.

Southwest Airlines was the top major carrier in August with 88,266 enplaned passengers, while American Eagle was the No. 1 commuter carrier with 37,637.

While the decline in passengers has slowed noticeably in the past couple months, the air cargo statistics continue to be brutal. The airport recorded nearly 6.8 million pounds of enplaned air cargo in August, a 24 percent drop from a year ago. Enplaned air cargo also is down 24 percent for the first eight months of the year.

Deplaned air cargo was down 19.6 percent in August and 23.4 percent so far this year.

- by Chris Baysden | Triangle Business Journal

]]> 2344 2009-09-17 14:30:25 2009-09-17 21:30:25 open open rdu-traffic-down-6-in-august publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/4286#comments wfw:commentRSS http://zikkir.com/business/4286/feed syndication_feed http://zikkir.com/business/feed syndication_permalink http://zikkir.com/business/4286 syndication_item_hash 7268474c9833af6838deb6e66106ea97 MBA: Mortgage bankers’ profits skyrocket 635% http://www.ethiopianreview.com/business/2363 Fri, 18 Sep 2009 02:36:40 +0000 http://www.ethiopianreview.com/business/?p=2363 South Florida Business Journal]]> 2363 2009-09-17 19:36:40 2009-09-18 02:36:40 open open mba-mortgage-bankers%e2%80%99-profits-skyrocket-635 publish 0 0 post _edit_lock 1253241401 _edit_last 3 CUNA Mutual selling Canadian affiliate http://www.ethiopianreview.com/business/2366 Fri, 18 Sep 2009 02:37:42 +0000 http://www.ethiopianreview.com/business/?p=2366 The Business Journal of Milwaukee]]> 2366 2009-09-17 19:37:42 2009-09-18 02:37:42 open open cuna-mutual-selling-canadian-affiliate publish 0 0 post _edit_lock 1253241463 _edit_last 3 DBJ Q&A with SBA Administrator Karen Mills http://www.ethiopianreview.com/business/2369 Fri, 18 Sep 2009 02:38:49 +0000 http://www.ethiopianreview.com/business/?p=2369 Denver Business Journal ]]> 2369 2009-09-17 19:38:49 2009-09-18 02:38:49 open open dbj-qa-with-sba-administrator-karen-mills publish 0 0 post _edit_lock 1253241530 _edit_last 3 Former Colorado bank execs get prison terms for tax evasion http://www.ethiopianreview.com/business/2372 Fri, 18 Sep 2009 02:39:57 +0000 http://www.ethiopianreview.com/business/?p=2372 Denver Business Journal]]> 2372 2009-09-17 19:39:57 2009-09-18 02:39:57 open open former-colorado-bank-execs-get-prison-terms-for-tax-evasion publish 0 0 post _edit_lock 1253241598 _edit_last 3 Albuquerque woman indicted on forgery, embezzlement http://www.ethiopianreview.com/business/2378 Fri, 18 Sep 2009 02:44:29 +0000 http://www.ethiopianreview.com/business/?p=2378 New Mexico Business Weekly]]> 2378 2009-09-17 19:44:29 2009-09-18 02:44:29 open open albuquerque-woman-indicted-on-forgery-embezzlement publish 0 0 post _edit_lock 1253241871 _edit_last 3 Larry King Live features Susan Jacobs of Wheels of Success http://www.ethiopianreview.com/business/2381 Fri, 18 Sep 2009 02:46:15 +0000 http://www.ethiopianreview.com/business/?p=2381 Tampa Bay Business Journal]]> 2381 2009-09-17 19:46:15 2009-09-18 02:46:15 open open larry-king-live-features-susan-jacobs-of-wheels-of-success publish 0 0 post _edit_lock 1253241976 _edit_last 3 Coral Gables group buys Gibraltar Private Bank for $93M http://www.ethiopianreview.com/business/2384 Fri, 18 Sep 2009 02:47:31 +0000 http://www.ethiopianreview.com/business/?p=2384 South Florida Business Journal ]]> 2384 2009-09-17 19:47:31 2009-09-18 02:47:31 open open coral-gables-group-buys-gibraltar-private-bank-for-93m publish 0 0 post _edit_lock 1253242052 _edit_last 3 Heritage Financial plans to raise $40M in stock offering http://www.ethiopianreview.com/business/2387 Fri, 18 Sep 2009 02:48:22 +0000 http://www.ethiopianreview.com/business/?p=2387 Puget Sound Business Journal (Seattle)]]> 2387 2009-09-17 19:48:22 2009-09-18 02:48:22 open open heritage-financial-plans-to-raise-40m-in-stock-offering publish 0 0 post _edit_lock 1253242103 _edit_last 3 Judge OKs W sale to Unity House http://www.ethiopianreview.com/business/2390 Fri, 18 Sep 2009 02:49:49 +0000 http://www.ethiopianreview.com/business/?p=2390 Pacific Business News (Honolulu)]]> 2390 2009-09-17 19:49:49 2009-09-18 02:49:49 open open judge-oks-w-sale-to-unity-house publish 0 0 post _edit_lock 1253242190 _edit_last 3 Hecker to face grand jury http://www.ethiopianreview.com/business/2393 Fri, 18 Sep 2009 02:51:41 +0000 http://www.ethiopianreview.com/business/?p=2393 Minneapolis / St. Paul Business Journal ]]> 2393 2009-09-17 19:51:41 2009-09-18 02:51:41 open open hecker-to-face-grand-jury publish 0 0 post _edit_lock 1253242302 _edit_last 3 Equipment firm files bankruptcy http://www.ethiopianreview.com/business/2396 Fri, 18 Sep 2009 02:53:35 +0000 http://www.ethiopianreview.com/business/?p=2396 Nashville Business Journal]]> 2396 2009-09-17 19:53:35 2009-09-18 02:53:35 open open equipment-firm-files-bankruptcy publish 0 0 post _edit_lock 1253242418 _edit_last 3 BBA CEO asks for input on master plan http://www.ethiopianreview.com/business/2402 Fri, 18 Sep 2009 03:04:52 +0000 http://www.ethiopianreview.com/business/?p=2402 Birmingham Business Journal]]> 2402 2009-09-17 20:04:52 2009-09-18 03:04:52 open open bba-ceo-asks-for-input-on-master-plan publish 0 0 post _edit_lock 1253243093 _edit_last 3 Nixon to visit Express Scripts Friday http://www.ethiopianreview.com/business/2408 Fri, 18 Sep 2009 03:06:19 +0000 http://www.ethiopianreview.com/business/?p=2408 St. Louis Business Journal]]> 2408 2009-09-17 20:06:19 2009-09-18 03:06:19 open open nixon-to-visit-express-scripts-friday publish 0 0 post _edit_lock 1253243180 _edit_last 3 Texas sees decrease in unemployment claims http://www.ethiopianreview.com/business/2411 Fri, 18 Sep 2009 03:07:26 +0000 http://www.ethiopianreview.com/business/?p=2411 Dallas Business Journal]]> 2411 2009-09-17 20:07:26 2009-09-18 03:07:26 open open texas-sees-decrease-in-unemployment-claims publish 0 0 post _edit_lock 1253243246 _edit_last 3 School year eases unemployment stats http://www.ethiopianreview.com/business/2414 Fri, 18 Sep 2009 03:08:26 +0000 http://www.ethiopianreview.com/business/?p=2414 Phoenix Business Journal]]> 2414 2009-09-17 20:08:26 2009-09-18 03:08:26 open open school-year-eases-unemployment-stats publish 0 0 post _edit_lock 1253243306 _edit_last 3 Office portion of Two Liberty Place sold http://www.ethiopianreview.com/business/2417 Fri, 18 Sep 2009 03:09:16 +0000 http://www.ethiopianreview.com/business/?p=2417 Philadelphia Business Journal ]]> 2417 2009-09-17 20:09:16 2009-09-18 03:09:16 open open office-portion-of-two-liberty-place-sold publish 0 0 post _edit_lock 1253243724 _edit_last 3 Immigration building to stay in the Pearl http://www.ethiopianreview.com/business/2423 Fri, 18 Sep 2009 03:16:30 +0000 http://www.ethiopianreview.com/business/?p=2423 Portland Business Journal]]> 2423 2009-09-17 20:16:30 2009-09-18 03:16:30 open open immigration-building-to-stay-in-the-pearl publish 0 0 post _edit_lock 1253243791 _edit_last 3 Home builders call for tax credit expansion http://www.ethiopianreview.com/business/2426 Fri, 18 Sep 2009 03:18:31 +0000 http://www.ethiopianreview.com/business/?p=2426 Business Courier of Cincinnati]]> 2426 2009-09-17 20:18:31 2009-09-18 03:18:31 open open home-builders-call-for-tax-credit-expansion publish 0 0 post _edit_lock 1253243912 _edit_last 3 UCSF names Sam Hawgood medical school dean http://www.ethiopianreview.com/business/2429 Fri, 18 Sep 2009 03:19:48 +0000 http://www.ethiopianreview.com/business/?p=2429 San Francisco Business Times]]> 2429 2009-09-17 20:19:48 2009-09-18 03:19:48 open open ucsf-names-sam-hawgood-medical-school-dean publish 0 0 post _edit_lock 1253243989 _edit_last 3 Columbus State wants to raise tuition – later http://www.ethiopianreview.com/business/2432 Fri, 18 Sep 2009 03:21:16 +0000 http://www.ethiopianreview.com/business/?p=2432 Business First of Columbus]]> 2432 2009-09-17 20:21:16 2009-09-18 03:21:16 open open columbus-state-wants-to-raise-tuition-%e2%80%93-later publish 0 0 post _edit_lock 1253244077 _edit_last 3 Google to turn digital books into print http://www.ethiopianreview.com/business/2435 Fri, 18 Sep 2009 03:22:42 +0000 http://www.ethiopianreview.com/business/?p=2435 Silicon Valley / San Jose Business Journal]]> 2435 2009-09-17 20:22:42 2009-09-18 03:22:42 open open google-to-turn-digital-books-into-print publish 0 0 post _edit_lock 1253244162 _edit_last 3 Bradbury will base run for governor on sustainability, higher ed http://www.ethiopianreview.com/business/2438 Fri, 18 Sep 2009 03:24:01 +0000 http://www.ethiopianreview.com/business/?p=2438 Portland Business Journal]]> 2438 2009-09-17 20:24:01 2009-09-18 03:24:01 open open bradbury-will-base-run-for-governor-on-sustainability-higher-ed publish 0 0 post _edit_lock 1253244242 _edit_last 3 Nardin ready to expand campus http://www.ethiopianreview.com/business/2441 Fri, 18 Sep 2009 03:24:53 +0000 http://www.ethiopianreview.com/business/?p=2441 Business First of Buffalo ]]> 2441 2009-09-17 20:24:53 2009-09-18 03:24:53 open open nardin-ready-to-expand-campus publish 0 0 post _edit_lock 1253244294 _edit_last 3 VA Pittsburgh in line for $11 million in stimulus http://www.ethiopianreview.com/business/2444 Fri, 18 Sep 2009 03:26:19 +0000 http://www.ethiopianreview.com/business/?p=2444 Pittsburgh Business Times]]> 2444 2009-09-17 20:26:19 2009-09-18 03:26:19 open open va-pittsburgh-in-line-for-11-million-in-stimulus publish 0 0 post _edit_lock 1253244380 _edit_last 3 Colorado-Utah team gets $3.8M stimulus grant for study on trapping CO2 underground http://www.ethiopianreview.com/business/2447 Fri, 18 Sep 2009 03:27:06 +0000 http://www.ethiopianreview.com/business/?p=2447 Denver Business Journal]]> 2447 2009-09-17 20:27:06 2009-09-18 03:27:06 open open colorado-utah-team-gets-3-8m-stimulus-grant-for-study-on-trapping-co2-underground publish 0 0 post _edit_lock 1253244427 _edit_last 3 Tetra Tech gets $25M EPA contract http://www.ethiopianreview.com/business/2450 Fri, 18 Sep 2009 03:27:49 +0000 http://www.ethiopianreview.com/business/?p=2450 Los Angeles Business]]> 2450 2009-09-17 20:27:49 2009-09-18 03:27:49 open open tetra-tech-gets-25m-epa-contract publish 0 0 post _edit_lock 1253244471 _edit_last 3 Gasoline prices continue to fall across Texas http://www.ethiopianreview.com/business/2453 Fri, 18 Sep 2009 03:28:36 +0000 http://www.ethiopianreview.com/business/?p=2453 San Antonio Business Journal ]]> 2453 2009-09-17 20:28:36 2009-09-18 03:28:36 open open gasoline-prices-continue-to-fall-across-texas publish 0 0 post _edit_lock 1253244516 _edit_last 3 State health office fines Chevron, city http://www.ethiopianreview.com/business/2456 Fri, 18 Sep 2009 03:29:11 +0000 http://www.ethiopianreview.com/business/?p=2456 Pacific Business News (Honolulu)]]> 2456 2009-09-17 20:29:11 2009-09-18 03:29:11 open open state-health-office-fines-chevron-city publish 0 0 post _edit_lock 1253244552 _edit_last 3 Former Macy’s executive named chairman of The Pantry http://www.ethiopianreview.com/business/2459 Fri, 18 Sep 2009 03:30:06 +0000 http://www.ethiopianreview.com/business/?p=2459 Triangle Business Journal]]> 2459 2009-09-17 20:30:06 2009-09-18 03:30:06 open open former-macy%e2%80%99s-executive-named-chairman-of-the-pantry publish 0 0 post _edit_lock 1253244643 _edit_last 3 West Chester lawyer Bozeman sentenced to 22 months http://www.ethiopianreview.com/business/2463 Fri, 18 Sep 2009 03:31:50 +0000 http://www.ethiopianreview.com/business/?p=2463 Philadelphia Business Journal ]]> 2463 2009-09-17 20:31:50 2009-09-18 03:31:50 open open west-chester-lawyer-bozeman-sentenced-to-22-months publish 0 0 post _edit_lock 1253244711 _edit_last 3 JPMorgan to lay off 43 in downtown Milwaukee http://www.ethiopianreview.com/business/2471 Fri, 18 Sep 2009 03:33:36 +0000 http://www.ethiopianreview.com/business/?p=2471 The Business Journal of Milwaukee ]]> 2471 2009-09-17 20:33:36 2009-09-18 03:33:36 open open jpmorgan-to-lay-off-43-in-downtown-milwaukee publish 0 0 post _edit_lock 1253244817 _edit_last 3 Benchmark Electronics to close plant, lay off 183 http://www.ethiopianreview.com/business/2474 Fri, 18 Sep 2009 03:34:26 +0000 http://www.ethiopianreview.com/business/?p=2474 Portland Business Journal]]> 2474 2009-09-17 20:34:26 2009-09-18 03:34:26 open open benchmark-electronics-to-close-plant-lay-off-183 publish 0 0 post _edit_lock 1253244867 _edit_last 3 Pa. Senate passes Phila. budget relief bill http://www.ethiopianreview.com/business/2480 Fri, 18 Sep 2009 03:50:13 +0000 http://www.ethiopianreview.com/business/?p=2480 Philadelphia Business Journal ]]> 2480 2009-09-17 20:50:13 2009-09-18 03:50:13 open open pa-senate-passes-phila-budget-relief-bill publish 0 0 post _edit_lock 1253247741 _edit_last 3 Harvard study: 45,000 deaths linked to lack of insurance http://www.ethiopianreview.com/business/2494 Fri, 18 Sep 2009 04:27:20 +0000 http://www.ethiopianreview.com/business/?p=2494 South Florida Business Journal]]> 2494 2009-09-17 21:27:20 2009-09-18 04:27:20 open open harvard-study-45000-deaths-linked-to-lack-of-insurance publish 0 0 post _edit_lock 1253248040 _edit_last 3 Democratic lawmakers to call for tighter rein on Pinnacol http://www.ethiopianreview.com/business/2497 Fri, 18 Sep 2009 04:28:26 +0000 http://www.ethiopianreview.com/business/?p=2497 Denver Business Journal ]]> 2497 2009-09-17 21:28:26 2009-09-18 04:28:26 open open democratic-lawmakers-to-call-for-tighter-rein-on-pinnacol publish 0 0 post _edit_lock 1253248107 _edit_last 3 Colorado real estate regulators, mortgage brokers battle over investigation http://www.ethiopianreview.com/business/2503 Fri, 18 Sep 2009 04:31:36 +0000 http://www.ethiopianreview.com/business/?p=2503 Denver Business Journal ]]> 2503 2009-09-17 21:31:36 2009-09-18 04:31:36 open open colorado-real-estate-regulators-mortgage-brokers-battle-over-investigation publish 0 0 post _edit_lock 1253248297 _edit_last 3 Tysons Corner proposals would cut densities by one-sixth http://www.ethiopianreview.com/business/2506 Fri, 18 Sep 2009 04:32:46 +0000 http://www.ethiopianreview.com/business/?p=2506 Washington Business Journal ]]> 2506 2009-09-17 21:32:46 2009-09-18 04:32:46 open open tysons-corner-proposals-would-cut-densities-by-one-sixth publish 0 0 post _edit_lock 1253248367 _edit_last 3 Report: SEC charges dismissed against former Mercury counsel http://www.ethiopianreview.com/business/2509 Fri, 18 Sep 2009 04:33:47 +0000 http://www.ethiopianreview.com/business/?p=2509 Silicon Valley / San Jose Business Journal]]> 2509 2009-09-17 21:33:47 2009-09-18 04:33:47 open open report-sec-charges-dismissed-against-former-mercury-counsel publish 0 0 post _edit_lock 1253248427 _edit_last 3 CST Industries buys Temcor http://www.ethiopianreview.com/business/2512 Fri, 18 Sep 2009 04:35:30 +0000 http://www.ethiopianreview.com/business/?p=2512 Kansas City Business Journal]]> 2512 2009-09-17 21:35:30 2009-09-18 04:35:30 open open cst-industries-buys-temcor publish 0 0 post _edit_lock 1253248531 _edit_last 3 Ceradyne receives $8M order http://www.ethiopianreview.com/business/2515 Fri, 18 Sep 2009 04:36:40 +0000 http://www.ethiopianreview.com/business/?p=2515 Los Angeles Business from bizjournals]]> 2515 2009-09-17 21:36:40 2009-09-18 04:36:40 open open ceradyne-receives-8m-order publish 0 0 post _edit_lock 1253248601 _edit_last 3 Hanesbrands to close Sanford plant, laying off 150 http://www.ethiopianreview.com/business/2518 Fri, 18 Sep 2009 04:37:36 +0000 http://www.ethiopianreview.com/business/?p=2518 Triangle Business Journal]]> 2518 2009-09-17 21:37:36 2009-09-18 04:37:36 open open hanesbrands-to-close-sanford-plant-laying-off-150 publish 0 0 post _edit_lock 1253248657 _edit_last 3 IRS says 26K Washington residents used first-time homebuying credits http://www.ethiopianreview.com/business/2524 Fri, 18 Sep 2009 04:39:24 +0000 http://www.ethiopianreview.com/business/?p=2524 Puget Sound Business Journal (Seattle) ]]> 2524 2009-09-17 21:39:24 2009-09-18 04:39:24 open open irs-says-26k-washington-residents-used-first-time-homebuying-credits publish 0 0 post _edit_lock 1253248765 _edit_last 3 Men’s Wearhouse to close Pennsylvania distribution center http://www.ethiopianreview.com/business/2530 Fri, 18 Sep 2009 04:41:24 +0000 http://www.ethiopianreview.com/business/?p=2530 Houston Business Journal]]> 2530 2009-09-17 21:41:24 2009-09-18 04:41:24 open open men%e2%80%99s-wearhouse-to-close-pennsylvania-distribution-center publish 0 0 post _edit_lock 1253248885 _edit_last 3 National retailer sought for abandoned Kmart; Target passes on site http://www.ethiopianreview.com/business/2533 Fri, 18 Sep 2009 04:42:24 +0000 http://www.ethiopianreview.com/business/?p=2533 The Business Review (Albany) ]]> 2533 2009-09-17 21:42:24 2009-09-18 04:42:24 open open national-retailer-sought-for-abandoned-kmart-target-passes-on-site publish 0 0 post _edit_lock 1253248944 _edit_last 3 Harry & David reports year-end loss of nearly $20 million as sales decline more than 10 percent http://www.ethiopianreview.com/business/2536 Fri, 18 Sep 2009 04:43:24 +0000 http://www.ethiopianreview.com/business/?p=2536 Portland Business Journal]]> 2536 2009-09-17 21:43:24 2009-09-18 04:43:24 open open harry-david-reports-year-end-loss-of-nearly-20-million-as-sales-decline-more-than-10-percent publish 0 0 post _edit_lock 1253249005 _edit_last 3 Hawaii stocks mostly up, Wall St. slips http://www.ethiopianreview.com/business/2539 Fri, 18 Sep 2009 04:45:54 +0000 http://www.ethiopianreview.com/business/?p=2539 Pacific Business News (Honolulu)]]> 2539 2009-09-17 21:45:54 2009-09-18 04:45:54 open open hawaii-stocks-mostly-up-wall-st-slips publish 0 0 post _edit_lock 1253249220 _edit_last 3 Hawaiian expands California summer service http://www.ethiopianreview.com/business/2542 Fri, 18 Sep 2009 04:50:35 +0000 http://www.ethiopianreview.com/business/?p=2542 Pacific Business News (Honolulu)]]> 2542 2009-09-17 21:50:35 2009-09-18 04:50:35 open open hawaiian-expands-california-summer-service publish 0 0 post _edit_lock 1253249436 _edit_last 3 American to restart Honolulu-Chicago flights http://www.ethiopianreview.com/business/2545 Fri, 18 Sep 2009 04:52:19 +0000 http://www.ethiopianreview.com/business/?p=2545 Pacific Business News (Honolulu)]]> 2545 2009-09-17 21:52:19 2009-09-18 04:52:19 open open american-to-restart-honolulu-chicago-flights publish 0 0 post _edit_lock 1253249540 _edit_last 3 Honolulu B&B bills revived http://www.ethiopianreview.com/business/2548 Fri, 18 Sep 2009 04:56:26 +0000 http://www.ethiopianreview.com/business/?p=2548 Pacific Business News (Honolulu) ]]> 2548 2009-09-17 21:56:26 2009-09-18 04:56:26 open open honolulu-bb-bills-revived publish 0 0 post _edit_lock 1253249788 _edit_last 3 RDU’s Terminal 1 renovation may shift Southwest Airlines http://www.ethiopianreview.com/business/2552 Fri, 18 Sep 2009 05:29:20 +0000 http://www.ethiopianreview.com/business/?p=2552 Triangle Business Journal]]> 2552 2009-09-17 22:29:20 2009-09-18 05:29:20 open open rdu%e2%80%99s-terminal-1-renovation-may-shift-southwest-airlines publish 0 0 post _edit_lock 1253251762 _edit_last 3 Citi hires BofA's Tsang for China banking http://www.ethiopianreview.com/business/2558 Fri, 18 Sep 2009 06:27:36 +0000 http://www.ethiopianreview.com/business/?p=2558 Press Trust of India]]> 2558 2009-09-17 23:27:36 2009-09-18 06:27:36 open open citi-hires-bofas-tsang-for-china-banking publish 0 0 post _edit_lock 1253255258 _edit_last 3 Unitech tops combined value, volume chart http://www.ethiopianreview.com/business/2561 Fri, 18 Sep 2009 06:28:43 +0000 http://www.ethiopianreview.com/business/?p=2561 BS Reporter]]> 2561 2009-09-17 23:28:43 2009-09-18 06:28:43 open open unitech-tops-combined-value-volume-chart publish 0 0 post _edit_lock 1253255324 _edit_last 3 ACC to invest Rs 1,400 cr for expansion next yr http://www.ethiopianreview.com/business/2564 Fri, 18 Sep 2009 06:30:18 +0000 http://www.ethiopianreview.com/business/?p=2564 Press Trust of India]]> 2564 2009-09-17 23:30:18 2009-09-18 06:30:18 open open acc-to-invest-rs-1400-cr-for-expansion-next-yr publish 0 0 post _edit_lock 1253255418 _edit_last 3 India unlikely to allow FDI in multibrand retail: official http://www.ethiopianreview.com/business/2567 Fri, 18 Sep 2009 06:31:45 +0000 http://www.ethiopianreview.com/business/?p=2567 PTI ]]> 2567 2009-09-17 23:31:45 2009-09-18 06:31:45 open open india-unlikely-to-allow-fdi-in-multibrand-retail-official publish 0 0 post _edit_lock 1253255506 _edit_last 3 NTPC mulls doubling power generation capacity http://www.ethiopianreview.com/business/2570 Fri, 18 Sep 2009 06:38:35 +0000 http://www.ethiopianreview.com/business/?p=2570 Press Trust of India]]> 2570 2009-09-17 23:38:35 2009-09-18 06:38:35 open open ntpc-mulls-doubling-power-generation-capacity publish 0 0 post _edit_lock 1253255917 _edit_last 3 French ship builder eyes Asia naval defense market http://www.ethiopianreview.com/business/2573 Fri, 18 Sep 2009 06:39:27 +0000 http://www.ethiopianreview.com/business/?p=2573 AFP/ PTI]]> 2573 2009-09-17 23:39:27 2009-09-18 06:39:27 open open french-ship-builder-eyes-asia-naval-defense-market publish 0 0 post _edit_lock 1253255968 _edit_last 3 CII seeks zero GST for processed fruit and vegetable industry http://www.ethiopianreview.com/business/2576 Fri, 18 Sep 2009 06:40:17 +0000 http://www.ethiopianreview.com/business/?p=2576 Press Trust of India]]> 2576 2009-09-17 23:40:17 2009-09-18 06:40:17 open open cii-seeks-zero-gst-for-processed-fruit-and-vegetable-industry publish 0 0 post _edit_lock 1253256018 _edit_last 3 FMCG cos new mantra for modern retail growth http://www.ethiopianreview.com/business/2579 Fri, 18 Sep 2009 06:41:05 +0000 http://www.ethiopianreview.com/business/?p=2579 BS Reporter ]]> 2579 2009-09-17 23:41:05 2009-09-18 06:41:05 open open fmcg-cos-new-mantra-for-modern-retail-growth publish 0 0 post _edit_lock 1253256065 _edit_last 3 Govt okays amendment to Air Agreement with Saudi Arabia http://www.ethiopianreview.com/business/2582 Fri, 18 Sep 2009 06:41:55 +0000 http://www.ethiopianreview.com/business/?p=2582 Press Trust of India]]> 2582 2009-09-17 23:41:55 2009-09-18 06:41:55 open open govt-okays-amendment-to-air-agreement-with-saudi-arabia publish 0 0 post _edit_lock 1253256116 _edit_last 3 ESPN Star to cash in on Champions Trophy, Champions League T20 http://www.ethiopianreview.com/business/2585 Fri, 18 Sep 2009 06:42:41 +0000 http://www.ethiopianreview.com/business/?p=2585 Press Trust of India]]> 2585 2009-09-17 23:42:41 2009-09-18 06:42:41 open open espn-star-to-cash-in-on-champions-trophy-champions-league-t20 publish 0 0 post _edit_lock 1253256161 _edit_last 3 Pak wants unconditional talks with India: Qureshi http://www.ethiopianreview.com/business/2588 Fri, 18 Sep 2009 06:44:06 +0000 http://www.ethiopianreview.com/business/?p=2588 PTI ]]> 2588 2009-09-17 23:44:06 2009-09-18 06:44:06 open open pak-wants-unconditional-talks-with-india-qureshi publish 0 0 post _edit_lock 1253256248 _edit_last 3 Haryana govt to sell securities worth Rs 1,200 cr http://www.ethiopianreview.com/business/2591 Fri, 18 Sep 2009 06:44:55 +0000 http://www.ethiopianreview.com/business/?p=2591 BS Reporter]]> 2591 2009-09-17 23:44:55 2009-09-18 06:44:55 open open haryana-govt-to-sell-securities-worth-rs-1200-cr publish 0 0 post _edit_lock 1253256295 _edit_last 3 7Seas Technologies bags 2009 Intl Stevie Business Award http://www.ethiopianreview.com/business/2594 Fri, 18 Sep 2009 06:45:46 +0000 http://www.ethiopianreview.com/business/?p=2594 Press Trust of India]]> 2594 2009-09-17 23:45:46 2009-09-18 06:45:46 open open 7seas-technologies-bags-2009-intl-stevie-business-award publish 0 0 post _edit_lock 1253256347 _edit_last 3 Cabinet okays availing Japanese loan for freight corridor http://www.ethiopianreview.com/business/2597 Fri, 18 Sep 2009 06:46:33 +0000 http://www.ethiopianreview.com/business/?p=2597 Press Trust of India]]> 2597 2009-09-17 23:46:33 2009-09-18 06:46:33 open open cabinet-okays-availing-japanese-loan-for-freight-corridor publish 0 0 post _edit_lock 1253256394 _edit_last 3 CMIE ups GDP growth to 5.9% for FY'10 http://www.ethiopianreview.com/business/2600 Fri, 18 Sep 2009 06:47:25 +0000 http://www.ethiopianreview.com/business/?p=2600 Press Trust of India]]> 2600 2009-09-17 23:47:25 2009-09-18 06:47:25 open open cmie-ups-gdp-growth-to-5-9-for-fy10 publish 0 0 post _edit_lock 1253256446 _edit_last 3 Pepe Jeans earmarks Rs 50 cr to open 50 stores by Sep'10 http://www.ethiopianreview.com/business/2603 Fri, 18 Sep 2009 06:48:13 +0000 http://www.ethiopianreview.com/business/?p=2603 Press Trust of India]]> 2603 2009-09-17 23:48:13 2009-09-18 06:48:13 open open pepe-jeans-earmarks-rs-50-cr-to-open-50-stores-by-sep10 publish 0 0 post _edit_lock 1253256494 _edit_last 3 Chinese car maker BYD aiming to zoom past Toyota http://www.ethiopianreview.com/business/2606 Fri, 18 Sep 2009 06:49:01 +0000 http://www.ethiopianreview.com/business/?p=2606 AFP/ PTI]]> 2606 2009-09-17 23:49:01 2009-09-18 06:49:01 open open chinese-car-maker-byd-aiming-to-zoom-past-toyota publish 0 0 post _edit_lock 1253256542 _edit_last 3 Lanka expecting $100-mn FDI from India by end-December http://www.ethiopianreview.com/business/2609 Fri, 18 Sep 2009 06:49:55 +0000 http://www.ethiopianreview.com/business/?p=2609 Press Trust of India]]> 2609 2009-09-17 23:49:55 2009-09-18 06:49:55 open open lanka-expecting-100-mn-fdi-from-india-by-end-december publish 0 0 post _edit_lock 1253256626 _edit_last 3 India Inc mops up Rs 40,000 cr via debt in Q1 http://www.ethiopianreview.com/business/2613 Fri, 18 Sep 2009 06:51:20 +0000 http://www.ethiopianreview.com/business/?p=2613 Press Trust of India]]> 2613 2009-09-17 23:51:20 2009-09-18 06:51:20 open open india-inc-mops-up-rs-40000-cr-via-debt-in-q1 publish 0 0 post _edit_lock 1253256681 _edit_last 3 Alstom led consortium bags Rs 563 cr contract from BMRCL http://www.ethiopianreview.com/business/2616 Fri, 18 Sep 2009 06:52:25 +0000 http://www.ethiopianreview.com/business/?p=2616 Press Trust of India]]> 2616 2009-09-17 23:52:25 2009-09-18 06:52:25 open open alstom-led-consortium-bags-rs-563-cr-contract-from-bmrcl publish 0 0 post _edit_lock 1253256746 _edit_last 3 Commerce Secy to head panel to redress exporters woes http://www.ethiopianreview.com/business/2619 Fri, 18 Sep 2009 06:53:23 +0000 http://www.ethiopianreview.com/business/?p=2619 Press Trust of India]]> 2619 2009-09-17 23:53:23 2009-09-18 06:53:23 open open commerce-secy-to-head-panel-to-redress-exporters-woes publish 0 0 post _edit_lock 1253256804 _edit_last 3 IOL Chemicals to launch Proton Pump Inhibitor in 2010 http://www.ethiopianreview.com/business/2622 Fri, 18 Sep 2009 06:54:21 +0000 http://www.ethiopianreview.com/business/?p=2622 Press Trust of India]]> 2622 2009-09-17 23:54:21 2009-09-18 06:54:21 open open iol-chemicals-to-launch-proton-pump-inhibitor-in-2010 publish 0 0 post _edit_lock 1253256862 _edit_last 3 Reliance Infra's order book may cross $7 bn-mark: Goldman http://www.ethiopianreview.com/business/2625 Fri, 18 Sep 2009 06:55:25 +0000 http://www.ethiopianreview.com/business/?p=2625 Press Trust of India]]> 2625 2009-09-17 23:55:25 2009-09-18 06:55:25 open open reliance-infras-order-book-may-cross-7-bn-mark-goldman publish 0 0 post _edit_lock 1253256926 _edit_last 3 Govt abolishes post of lecturer in IITs http://www.ethiopianreview.com/business/2628 Fri, 18 Sep 2009 06:56:24 +0000 http://www.ethiopianreview.com/business/?p=2628 Press Trust of India]]> 2628 2009-09-17 23:56:24 2009-09-18 06:56:24 open open govt-abolishes-post-of-lecturer-in-iits publish 0 0 post _edit_lock 1253256986 _edit_last 3 BHEL achieves all time high turnover of over Rs 28,000 cr http://www.ethiopianreview.com/business/2631 Fri, 18 Sep 2009 06:57:22 +0000 http://www.ethiopianreview.com/business/?p=2631 Press Trust of India]]> 2631 2009-09-17 23:57:22 2009-09-18 06:57:22 open open bhel-achieves-all-time-high-turnover-of-over-rs-28000-cr publish 0 0 post _edit_lock 1253257043 _edit_last 3 Indian co to be in top 6 global carmakers by 2020: Deloitte http://www.ethiopianreview.com/business/2634 Fri, 18 Sep 2009 06:58:30 +0000 http://www.ethiopianreview.com/business/?p=2634 Press Trust of India]]> 2634 2009-09-17 23:58:30 2009-09-18 06:58:30 open open indian-co-to-be-in-top-6-global-carmakers-by-2020-deloitte publish 0 0 post _edit_lock 1253257111 _edit_last 3 GE Appliances to focus on premium segment in India http://www.ethiopianreview.com/business/2637 Fri, 18 Sep 2009 06:59:22 +0000 http://www.ethiopianreview.com/business/?p=2637 BS Reporter ]]> 2637 2009-09-17 23:59:22 2009-09-18 06:59:22 open open ge-appliances-to-focus-on-premium-segment-in-india publish 0 0 post _edit_lock 1253257163 _edit_last 3 Aban Offshore to raise Rs 4,422 cr via share sale, QIB http://www.ethiopianreview.com/business/2640 Fri, 18 Sep 2009 07:00:30 +0000 http://www.ethiopianreview.com/business/?p=2640 Press Trust of India]]> 2640 2009-09-18 00:00:30 2009-09-18 07:00:30 open open aban-offshore-to-raise-rs-4422-cr-via-share-sale-qib publish 0 0 post _edit_lock 1253257232 _edit_last 3 Alok Retail in talks with PE firms to raise Rs 100 cr http://www.ethiopianreview.com/business/2643 Fri, 18 Sep 2009 07:01:39 +0000 http://www.ethiopianreview.com/business/?p=2643 Press Trust of India]]> 2643 2009-09-18 00:01:39 2009-09-18 07:01:39 open open alok-retail-in-talks-with-pe-firms-to-raise-rs-100-cr publish 0 0 post _edit_lock 1253257300 _edit_last 3 Beam Global launches its scotch whisky Teacher's Origin http://www.ethiopianreview.com/business/2646 Fri, 18 Sep 2009 07:02:28 +0000 http://www.ethiopianreview.com/business/?p=2646 Press Trust of India]]> 2646 2009-09-18 00:02:28 2009-09-18 07:02:28 open open beam-global-launches-its-scotch-whisky-teachers-origin publish 0 0 post _edit_lock 1253257348 _edit_last 3 WB govt offers 45 acre to Wipro, Infosys http://www.ethiopianreview.com/business/2649 Fri, 18 Sep 2009 07:03:23 +0000 http://www.ethiopianreview.com/business/?p=2649 Press Trust of India]]> 2649 2009-09-18 00:03:23 2009-09-18 07:03:23 open open wb-govt-offers-45-acre-to-wipro-infosys publish 0 0 post _edit_lock 1253257403 _edit_last 3 Cement industry to spend Rs 90,000 cr on expansion in 6-7 yrs http://www.ethiopianreview.com/business/2652 Fri, 18 Sep 2009 07:04:37 +0000 http://www.ethiopianreview.com/business/?p=2652 Press Trust of India]]> 2652 2009-09-18 00:04:37 2009-09-18 07:04:37 open open cement-industry-to-spend-rs-90000-cr-on-expansion-in-6-7-yrs publish 0 0 post _edit_lock 1253257478 _edit_last 3 Lack of IT infra a drag on India, China's competitive edge:EIU http://www.ethiopianreview.com/business/2655 Fri, 18 Sep 2009 07:05:34 +0000 http://www.ethiopianreview.com/business/?p=2655 Press Trust of India]]> 2655 2009-09-18 00:05:34 2009-09-18 07:05:34 open open lack-of-it-infra-a-drag-on-india-chinas-competitive-edgeeiu publish 0 0 post _edit_lock 1253257535 _edit_last 3 Global FDI to fall 30%; to remain subdued in 2010: UNCTAD http://www.ethiopianreview.com/business/2658 Fri, 18 Sep 2009 07:06:44 +0000 http://www.ethiopianreview.com/business/?p=2658 Press Trust of India]]> 2658 2009-09-18 00:06:44 2009-09-18 07:06:44 open open global-fdi-to-fall-30-to-remain-subdued-in-2010-unctad publish 0 0 post _edit_lock 1253257605 _edit_last 3 Stimulus packages will have to be withdrawn slowly: Rangarajan http://www.ethiopianreview.com/business/2661 Fri, 18 Sep 2009 07:07:47 +0000 http://www.ethiopianreview.com/business/?p=2661 Press Trust of India]]> 2661 2009-09-18 00:07:47 2009-09-18 07:07:47 open open stimulus-packages-will-have-to-be-withdrawn-slowly-rangarajan publish 0 0 post _edit_lock 1253257668 _edit_last 3 Gold buyers flocking to market despite high prices http://www.ethiopianreview.com/business/2664 Fri, 18 Sep 2009 07:08:35 +0000 http://www.ethiopianreview.com/business/?p=2664 Press Trust of India]]> 2664 2009-09-18 00:08:35 2009-09-18 07:08:35 open open gold-buyers-flocking-to-market-despite-high-prices publish 0 0 post _edit_lock 1253257716 _edit_last 3 Indiabulls-MMTC's bourse to commence trading from mid-Oct http://www.ethiopianreview.com/business/2667 Fri, 18 Sep 2009 07:09:45 +0000 http://www.ethiopianreview.com/business/?p=2667 Press Trust of India]]> 2667 2009-09-18 00:09:45 2009-09-18 07:09:45 open open indiabulls-mmtcs-bourse-to-commence-trading-from-mid-oct publish 0 0 post _edit_lock 1253257786 _edit_last 3 'Analyse options for creating more business opportunities' http://www.ethiopianreview.com/business/2670 Fri, 18 Sep 2009 07:10:46 +0000 http://www.ethiopianreview.com/business/?p=2670 Press Trust of India]]> 2670 2009-09-18 00:10:46 2009-09-18 07:10:46 open open analyse-options-for-creating-more-business-opportunities publish 0 0 post _edit_lock 1253257847 _edit_last 3 Cos can sustain in long term with focus on customer, staff: Deloitte http://www.ethiopianreview.com/business/2673 Fri, 18 Sep 2009 07:11:40 +0000 http://www.ethiopianreview.com/business/?p=2673 Press Trust of India]]> 2673 2009-09-18 00:11:40 2009-09-18 07:11:40 open open cos-can-sustain-in-long-term-with-focus-on-customer-staff-deloitte publish 0 0 post _edit_lock 1253257901 _edit_last 3 Govt doubles supply of RIL's KG gas to Dabhol plant http://www.ethiopianreview.com/business/2676 Fri, 18 Sep 2009 07:12:40 +0000 http://www.ethiopianreview.com/business/?p=2676 Press Trust of India]]> 2676 2009-09-18 00:12:40 2009-09-18 07:12:40 open open govt-doubles-supply-of-rils-kg-gas-to-dabhol-plant publish 0 0 post _edit_lock 1253257961 _edit_last 3 Mkt may rally after consolidation in nxt few days: analysts http://www.ethiopianreview.com/business/2679 Fri, 18 Sep 2009 07:13:24 +0000 http://www.ethiopianreview.com/business/?p=2679 Press Trust of India]]> 2679 2009-09-18 00:13:24 2009-09-18 07:13:24 open open mkt-may-rally-after-consolidation-in-nxt-few-days-analysts publish 0 0 post _edit_lock 1253258005 _edit_last 3 ONGC to start gas production from Mumbai field http://www.ethiopianreview.com/business/2682 Fri, 18 Sep 2009 07:14:42 +0000 http://www.ethiopianreview.com/business/?p=2682 Press Trust of India]]> 2682 2009-09-18 00:14:42 2009-09-18 07:14:42 open open ongc-to-start-gas-production-from-mumbai-field publish 0 0 post _edit_lock 1253258083 _edit_last 3 Thermax bags Rs 1,000cr power plant project http://www.ethiopianreview.com/business/2685 Fri, 18 Sep 2009 07:15:30 +0000 http://www.ethiopianreview.com/business/?p=2685 Press Trust of India]]> 2685 2009-09-18 00:15:30 2009-09-18 07:15:30 open open thermax-bags-rs-1000cr-power-plant-project publish 0 0 post _edit_lock 1253258131 _edit_last 3 Orissa govt pulls up ArcelorMittal for delay in proj http://www.ethiopianreview.com/business/2688 Fri, 18 Sep 2009 07:18:07 +0000 http://www.ethiopianreview.com/business/?p=2688 Press Trust of India]]> 2688 2009-09-18 00:18:07 2009-09-18 07:18:07 open open orissa-govt-pulls-up-arcelormittal-for-delay-in-proj publish 0 0 post _edit_lock 1253258489 _edit_last 3 Maruti ropes in Madhavan as brand face of WagonR http://www.ethiopianreview.com/business/2693 Fri, 18 Sep 2009 07:23:42 +0000 http://www.ethiopianreview.com/business/?p=2693 Press Trust of India]]> 2693 2009-09-18 00:23:42 2009-09-18 07:23:42 open open maruti-ropes-in-madhavan-as-brand-face-of-wagonr publish 0 0 post _edit_lock 1253258624 _edit_last 3 FIIs net buyers of Rs 2,759 cr in cash mkt today http://www.ethiopianreview.com/business/2696 Fri, 18 Sep 2009 07:25:22 +0000 http://www.ethiopianreview.com/business/?p=2696 BS Reporter]]> 2696 2009-09-18 00:25:22 2009-09-18 07:25:22 open open fiis-net-buyers-of-rs-2759-cr-in-cash-mkt-today publish 0 0 post _edit_lock 1253258723 _edit_last 3 Orissa asks Posco to focus on welfare of locals http://www.ethiopianreview.com/business/2699 Fri, 18 Sep 2009 07:26:43 +0000 http://www.ethiopianreview.com/business/?p=2699 Press Trust of India]]> 2699 2009-09-18 00:26:43 2009-09-18 07:26:43 open open orissa-asks-posco-to-focus-on-welfare-of-locals publish 0 0 post _edit_lock 1253258804 _edit_last 3 New centralised tax system by this year-end: D P Dash http://www.ethiopianreview.com/business/2702 Fri, 18 Sep 2009 07:27:29 +0000 http://www.ethiopianreview.com/business/?p=2702 Press Trust of India]]> 2702 2009-09-18 00:27:29 2009-09-18 07:27:29 open open new-centralised-tax-system-by-this-year-end-d-p-dash publish 0 0 post _edit_lock 1253258849 _edit_last 3 Inflationary pressure will be there, says FM http://www.ethiopianreview.com/business/2705 Fri, 18 Sep 2009 07:28:19 +0000 http://www.ethiopianreview.com/business/?p=2705 Press Trust of India]]> 2705 2009-09-18 00:28:19 2009-09-18 07:28:19 open open inflationary-pressure-will-be-there-says-fm publish 0 0 post _edit_lock 1253258899 _edit_last 3 FIPB defers proposal on giving telecom licence to Bycell http://www.ethiopianreview.com/business/2708 Fri, 18 Sep 2009 07:29:13 +0000 http://www.ethiopianreview.com/business/?p=2708 Press Trust of India]]> 2708 2009-09-18 00:29:13 2009-09-18 07:29:13 open open fipb-defers-proposal-on-giving-telecom-licence-to-bycell publish 0 0 post _edit_lock 1253258953 _edit_last 3 Gems and Jewellery exports shrink 24% in Aug http://www.ethiopianreview.com/business/2711 Fri, 18 Sep 2009 07:30:01 +0000 http://www.ethiopianreview.com/business/?p=2711 Press Trust of India]]> 2711 2009-09-18 00:30:01 2009-09-18 07:30:01 open open gems-and-jewellery-exports-shrink-24-in-aug publish 0 0 post _edit_lock 1253259002 _edit_last 3 Raymond to build housing projs on 20 acres of surplus land http://www.ethiopianreview.com/business/2714 Fri, 18 Sep 2009 07:30:50 +0000 http://www.ethiopianreview.com/business/?p=2714 Press Trust of India]]> 2714 2009-09-18 00:30:50 2009-09-18 07:30:50 open open raymond-to-build-housing-projs-on-20-acres-of-surplus-land publish 0 0 post _edit_lock 1253259051 _edit_last 3 ABG to respond to Bharati offer for Great Offshore in 10 days http://www.ethiopianreview.com/business/2717 Fri, 18 Sep 2009 07:31:39 +0000 http://www.ethiopianreview.com/business/?p=2717 Press Trust of India]]> 2717 2009-09-18 00:31:39 2009-09-18 07:31:39 open open abg-to-respond-to-bharati-offer-for-great-offshore-in-10-days publish 0 0 post _edit_lock 1253259100 _edit_last 3 Silk exporters target exports of $800 million in FY10 http://www.ethiopianreview.com/business/2720 Fri, 18 Sep 2009 07:32:36 +0000 http://www.ethiopianreview.com/business/?p=2720 Press Trust of India]]> 2720 2009-09-18 00:32:36 2009-09-18 07:32:36 open open silk-exporters-target-exports-of-800-million-in-fy10 publish 0 0 post _edit_lock 1253259157 _edit_last 3 Torrent Power to replace Reliance Petro on BSE-100 index http://www.ethiopianreview.com/business/2723 Fri, 18 Sep 2009 07:33:30 +0000 http://www.ethiopianreview.com/business/?p=2723 Press Trust of India]]> 2723 2009-09-18 00:33:30 2009-09-18 07:33:30 open open torrent-power-to-replace-reliance-petro-on-bse-100-index publish 0 0 post _edit_lock 1253259210 _edit_last 3 CLP India ties up Rs 3,900-cr loan for Jhajjar power project http://www.ethiopianreview.com/business/2726 Fri, 18 Sep 2009 07:34:31 +0000 http://www.ethiopianreview.com/business/?p=2726 Press Trust of India]]> 2726 2009-09-18 00:34:31 2009-09-18 07:34:31 open open clp-india-ties-up-rs-3900-cr-loan-for-jhajjar-power-project publish 0 0 post _edit_last 3 _edit_lock 1253259272 DGH debunks allegations of taking favours from RIL http://www.ethiopianreview.com/business/2729 Fri, 18 Sep 2009 07:35:27 +0000 http://www.ethiopianreview.com/business/?p=2729 Press Trust of India]]> 2729 2009-09-18 00:35:27 2009-09-18 07:35:27 open open dgh-debunks-allegations-of-taking-favours-from-ril publish 0 0 post _edit_lock 1253259328 _edit_last 3 'Tata will make Orissa's Jajpur another Jamshedpur' http://www.ethiopianreview.com/business/2732 Fri, 18 Sep 2009 07:36:18 +0000 http://www.ethiopianreview.com/business/?p=2732 Press Trust of India]]> 2732 2009-09-18 00:36:18 2009-09-18 07:36:18 open open tata-will-make-orissas-jajpur-another-jamshedpur publish 0 0 post _edit_lock 1253259378 _edit_last 3 Govt to source more sugar from mills for ration shops http://www.ethiopianreview.com/business/2735 Fri, 18 Sep 2009 07:39:10 +0000 http://www.ethiopianreview.com/business/?p=2735 Press Trust of India]]> 2735 2009-09-18 00:39:10 2009-09-18 07:39:10 open open govt-to-source-more-sugar-from-mills-for-ration-shops publish 0 0 post _edit_lock 1253259551 _edit_last 3 GE to launch international appliances in India http://www.ethiopianreview.com/business/2738 Fri, 18 Sep 2009 07:41:09 +0000 http://www.ethiopianreview.com/business/?p=2738 Press Trust of India]]> 2738 2009-09-18 00:41:09 2009-09-18 07:41:09 open open ge-to-launch-international-appliances-in-india publish 0 0 post _edit_lock 1253259670 _edit_last 3 Sebi for overhaul of takeover norms http://www.ethiopianreview.com/business/2741 Fri, 18 Sep 2009 07:42:05 +0000 http://www.ethiopianreview.com/business/?p=2741 Press Trust of India]]> 2741 2009-09-18 00:42:05 2009-09-18 07:42:05 open open sebi-for-overhaul-of-takeover-norms publish 0 0 post _edit_lock 1253259726 _edit_last 3 Axis Bank to raise over Rs 5,000 cr from QIP, GDR http://www.ethiopianreview.com/business/2744 Fri, 18 Sep 2009 07:42:59 +0000 http://www.ethiopianreview.com/business/?p=2744 Press Trust of India]]> 2744 2009-09-18 00:42:59 2009-09-18 07:42:59 open open axis-bank-to-raise-over-rs-5000-cr-from-qip-gdr publish 0 0 post _edit_lock 1253259780 _edit_last 3 Nasscom welcomes WB govt's move to offer land to Wipro, Infy http://www.ethiopianreview.com/business/2747 Fri, 18 Sep 2009 07:43:44 +0000 http://www.ethiopianreview.com/business/?p=2747 Press Trust of India]]> 2747 2009-09-18 00:43:44 2009-09-18 07:43:44 open open nasscom-welcomes-wb-govts-move-to-offer-land-to-wipro-infy publish 0 0 post _edit_lock 1253259835 _edit_last 3 FII-TO-FII: Pantaloon traded at 5% premium http://www.ethiopianreview.com/business/2751 Fri, 18 Sep 2009 07:46:37 +0000 http://www.ethiopianreview.com/business/?p=2751

Scrip

FII Close* FII shares# Spot Close@ Premium To spot price % BSE Pantaloon Retail 349.80 118150 332.05 5.35 Punjab Nat Bank 797.25 500 772.10 3.26 Bank of Baroda 495.95 61183 482.65 2.76 Grasim Ind 2838.70 16492 2769.65 2.49 Union Bank 255.55 117780 250.70 1.93 NSE Bank of Baroda 487.00 25020 482.85 0.86 * FII-Close is the closing price of the scrip under FII-to-FII trades
# FII-Shares is the total number of shares traded under the FII-to-FII trades
@ Spot close price is the closing price in the cash market Punjab National Bank was traded at second highest premium of 3.26% on BSE with 500 shares changing hands at Rs 797.25 as against the spot price of Rs 772.10. - BS Reporter]]> 2751 2009-09-18 00:46:37 2009-09-18 07:46:37 open open fii-to-fii-pantaloon-traded-at-5-premium publish 0 0 post _edit_lock 1253259999 _edit_last 3 US markets slip after three days http://www.ethiopianreview.com/business/2754 Fri, 18 Sep 2009 07:47:42 +0000 http://www.ethiopianreview.com/business/?p=2754 BS Reporter]]> 2754 2009-09-18 00:47:42 2009-09-18 07:47:42 open open us-markets-slip-after-three-days publish 0 0 post _edit_lock 1253260063 _edit_last 3 Asian markets slip in early trades http://www.ethiopianreview.com/business/2757 Fri, 18 Sep 2009 07:48:28 +0000 http://www.ethiopianreview.com/business/?p=2757 BS Reporter]]> 2757 2009-09-18 00:48:28 2009-09-18 07:48:28 open open asian-markets-slip-in-early-trades publish 0 0 post _edit_lock 1253260109 _edit_last 3 FIIs net sellers Rs 532cr in F&O on Thursday http://www.ethiopianreview.com/business/2760 Fri, 18 Sep 2009 07:49:08 +0000 http://www.ethiopianreview.com/business/?p=2760 BS Reporter]]> 2760 2009-09-18 00:49:08 2009-09-18 07:49:08 open open fiis-net-sellers-rs-532cr-in-fo-on-thursday publish 0 0 post _edit_lock 1253260149 _edit_last 3 F&O OUTLOOK: Nifty may see an upside of 5,100 http://www.ethiopianreview.com/business/2763 Fri, 18 Sep 2009 07:50:14 +0000 http://www.ethiopianreview.com/business/?p=2763 Business Standard ]]> 2763 2009-09-18 00:50:14 2009-09-18 07:50:14 open open fo-outlook-nifty-may-see-an-upside-of-5100 publish 0 0 post _edit_lock 1253260216 _edit_last 3 Obama announces plan to expand fight against swine flu http://www.ethiopianreview.com/business/2766 Fri, 18 Sep 2009 07:51:39 +0000 http://www.ethiopianreview.com/business/?p=2766 PTI ]]> 2766 2009-09-18 00:51:39 2009-09-18 07:51:39 open open obama-announces-plan-to-expand-fight-against-swine-flu publish 0 0 post _edit_lock 1253260300 _edit_last 3 UN chief urges world climate deal by year's end http://www.ethiopianreview.com/business/2769 Fri, 18 Sep 2009 07:52:25 +0000 http://www.ethiopianreview.com/business/?p=2769 AFP/ PTI]]> 2769 2009-09-18 00:52:25 2009-09-18 07:52:25 open open un-chief-urges-world-climate-deal-by-years-end publish 0 0 post _edit_lock 1253260345 _edit_last 3 Re down 8 paise at 48.23 / $ in early trade http://www.ethiopianreview.com/business/2772 Fri, 18 Sep 2009 07:53:12 +0000 http://www.ethiopianreview.com/business/?p=2772 Press Trust of India]]> 2772 2009-09-18 00:53:12 2009-09-18 07:53:12 open open re-down-8-paise-at-48-23-in-early-trade publish 0 0 post _edit_lock 1253260394 _edit_last 3 Markets flat in early trades http://www.ethiopianreview.com/business/2775 Fri, 18 Sep 2009 07:54:05 +0000 http://www.ethiopianreview.com/business/?p=2775 BS Reporter]]> 2775 2009-09-18 00:54:05 2009-09-18 07:54:05 open open markets-flat-in-early-trades publish 0 0 post _edit_lock 1253260446 _edit_last 3 Israel warns of imminent threat of terror attacks across India http://www.ethiopianreview.com/business/2778 Fri, 18 Sep 2009 07:55:12 +0000 http://www.ethiopianreview.com/business/?p=2778 PTI]]> 2778 2009-09-18 00:55:12 2009-09-18 07:55:12 open open israel-warns-of-imminent-threat-of-terror-attacks-across-india publish 0 0 post _edit_lock 1253260514 _edit_last 3 Inflation may rise to 6% by March next year: RBI http://www.ethiopianreview.com/business/2781 Fri, 18 Sep 2009 07:56:10 +0000 http://www.ethiopianreview.com/business/?p=2781 Press Trust of India]]> 2781 2009-09-18 00:56:10 2009-09-18 07:56:10 open open inflation-may-rise-to-6-by-march-next-year-rbi publish 0 0 post _edit_lock 1253260571 _edit_last 3 Markets lacklustre http://www.ethiopianreview.com/business/2784 Fri, 18 Sep 2009 07:57:00 +0000 http://www.ethiopianreview.com/business/?p=2784 BS Reporter]]> 2784 2009-09-18 00:57:00 2009-09-18 07:57:00 open open markets-lacklustre publish 0 0 post _edit_lock 1253260621 _edit_last 3 Greenhouse farming answer to rampage by global warming http://www.ethiopianreview.com/business/2787 Fri, 18 Sep 2009 07:58:03 +0000 http://www.ethiopianreview.com/business/?p=2787 Press Trust of India ]]> 2787 2009-09-18 00:58:03 2009-09-18 07:58:03 open open greenhouse-farming-answer-to-rampage-by-global-warming publish 0 0 post _edit_lock 1253260684 _edit_last 3 Jet Airways in limelight, up 20% post strike http://www.ethiopianreview.com/business/2790 Fri, 18 Sep 2009 07:58:53 +0000 http://www.ethiopianreview.com/business/?p=2790 BS Reporter]]> 2790 2009-09-18 00:58:53 2009-09-18 07:58:53 open open jet-airways-in-limelight-up-20-post-strike publish 0 0 post _edit_lock 1253260733 _edit_last 3 G-20 urged to increase transparency in global finance http://www.ethiopianreview.com/business/2793 Fri, 18 Sep 2009 07:59:41 +0000 http://www.ethiopianreview.com/business/?p=2793 Press Trust of India]]> 2793 2009-09-18 00:59:41 2009-09-18 07:59:41 open open g-20-urged-to-increase-transparency-in-global-finance publish 0 0 post _edit_lock 1253260782 _edit_last 3 3i Infotech starts QIP http://www.ethiopianreview.com/business/2796 Fri, 18 Sep 2009 08:00:51 +0000 http://www.ethiopianreview.com/business/?p=2796 BS Reporter]]> 2796 2009-09-18 01:00:51 2009-09-18 08:00:51 open open 3i-infotech-starts-qip publish 0 0 post _edit_lock 1253260852 _edit_last 3 Falcon Tyres fixes record date for stock split http://www.ethiopianreview.com/business/2799 Fri, 18 Sep 2009 08:01:30 +0000 http://www.ethiopianreview.com/business/?p=2799 BS Reporter]]> 2799 2009-09-18 01:01:30 2009-09-18 08:01:30 open open falcon-tyres-fixes-record-date-for-stock-split publish 0 0 post _edit_lock 1253260890 _edit_last 3 1394 124.30.20.132 2009-10-13 07:17:34 2009-10-13 14:17:34 0 0 0 Tharoor apologises for his 'cattle class' remark http://www.ethiopianreview.com/business/2802 Fri, 18 Sep 2009 08:02:43 +0000 http://www.ethiopianreview.com/business/?p=2802 Press Trust of India]]> 2802 2009-09-18 01:02:43 2009-09-18 08:02:43 open open tharoor-apologises-for-his-cattle-class-remark publish 0 0 post _edit_lock 1253260964 _edit_last 3 Responsibilities on Indian Navy increased after 26/11: Verma http://www.ethiopianreview.com/business/2805 Fri, 18 Sep 2009 08:03:30 +0000 http://www.ethiopianreview.com/business/?p=2805 Press Trust of India]]> 2805 2009-09-18 01:03:30 2009-09-18 08:03:30 open open responsibilities-on-indian-navy-increased-after-2611-verma publish 0 0 post _edit_lock 1253261011 _edit_last 3 Markets slip in noon trades http://www.ethiopianreview.com/business/2808 Fri, 18 Sep 2009 08:04:20 +0000 http://www.ethiopianreview.com/business/?p=2808 BS Reporter]]> 2808 2009-09-18 01:04:20 2009-09-18 08:04:20 open open markets-slip-in-noon-trades publish 0 0 post _edit_lock 1253261061 _edit_last 3 US Senator asks Clinton to broker peace between India, Pak http://www.ethiopianreview.com/business/2811 Fri, 18 Sep 2009 08:05:24 +0000 http://www.ethiopianreview.com/business/?p=2811 PTI ]]> 2811 2009-09-18 01:05:24 2009-09-18 08:05:24 open open us-senator-asks-clinton-to-broker-peace-between-india-pak publish 0 0 post _edit_lock 1253261125 _edit_last 3 Flawless Diamond bags order worth Rs 17 cr http://www.ethiopianreview.com/business/2814 Fri, 18 Sep 2009 08:06:10 +0000 http://www.ethiopianreview.com/business/?p=2814 Press Trust of India]]> 2814 2009-09-18 01:06:10 2009-09-18 08:06:10 open open flawless-diamond-bags-order-worth-rs-17-cr publish 0 0 post _edit_lock 1253261171 _edit_last 3 Pak should go after Saeed: US envoy http://www.ethiopianreview.com/business/2817 Fri, 18 Sep 2009 08:07:30 +0000 http://www.ethiopianreview.com/business/?p=2817 Press Trust of India]]> 2817 2009-09-18 01:07:30 2009-09-18 08:07:30 open open pak-should-go-after-saeed-us-envoy publish 0 0 post _edit_lock 1253261251 _edit_last 3 Don't expect sops next fiscal, Commerce Secy tells exporters http://www.ethiopianreview.com/business/2820 Fri, 18 Sep 2009 08:08:49 +0000 http://www.ethiopianreview.com/business/?p=2820 Press Trust of India ]]> 2820 2009-09-18 01:08:49 2009-09-18 08:08:49 open open dont-expect-sops-next-fiscal-commerce-secy-tells-exporters publish 0 0 post _edit_lock 1253261330 _edit_last 3 Rao wanted no-nuclear weapons pact with Pakistan: US Senator http://www.ethiopianreview.com/business/2823 Fri, 18 Sep 2009 08:09:55 +0000 http://www.ethiopianreview.com/business/?p=2823 PTI ]]> 2823 2009-09-18 01:09:55 2009-09-18 08:09:55 open open rao-wanted-no-nuclear-weapons-pact-with-pakistan-us-senator publish 0 0 post _edit_lock 1253261395 _edit_last 3 Patni Computer allots 1 lakh shares to employees http://www.ethiopianreview.com/business/2826 Fri, 18 Sep 2009 08:10:41 +0000 http://www.ethiopianreview.com/business/?p=2826 BS Reporter]]> 2826 2009-09-18 01:10:41 2009-09-18 08:10:41 open open patni-computer-allots-1-lakh-shares-to-employees publish 0 0 post _edit_lock 1253261442 _edit_last 3 Tata Motors to launch Freelander SUV on Sep 22 http://www.ethiopianreview.com/business/2829 Fri, 18 Sep 2009 08:11:30 +0000 http://www.ethiopianreview.com/business/?p=2829 BS Reporter]]> 2829 2009-09-18 01:11:30 2009-09-18 08:11:30 open open tata-motors-to-launch-freelander-suv-on-sep-22 publish 0 0 post _edit_lock 1253261491 _edit_last 3 Nuclear agency experts say Iran can make the bomb http://www.ethiopianreview.com/business/2832 Fri, 18 Sep 2009 08:12:19 +0000 http://www.ethiopianreview.com/business/?p=2832 AP/PTI ]]> 2832 2009-09-18 01:12:19 2009-09-18 08:12:19 open open nuclear-agency-experts-say-iran-can-make-the-bomb publish 0 0 post _edit_lock 1253261540 _edit_last 3 Axis Bank raises $720 mn via GDR, QIP http://www.ethiopianreview.com/business/2835 Fri, 18 Sep 2009 08:13:20 +0000 http://www.ethiopianreview.com/business/?p=2835 Press Trust of India]]> 2835 2009-09-18 01:13:20 2009-09-18 08:13:20 open open axis-bank-raises-720-mn-via-gdr-qip publish 0 0 post _edit_lock 1253261602 _edit_last 3 Orchid gets ANDA's final nod from USFDA for Zaleplon Capsules http://www.ethiopianreview.com/business/2838 Fri, 18 Sep 2009 08:14:08 +0000 http://www.ethiopianreview.com/business/?p=2838 Press Trust of India]]> 2838 2009-09-18 01:14:08 2009-09-18 08:14:08 open open orchid-gets-andas-final-nod-from-usfda-for-zaleplon-capsules publish 0 0 post _edit_lock 1253261649 _edit_last 3 Den Networks raises Rs 100 cr in pre-IPO placement http://www.ethiopianreview.com/business/2841 Fri, 18 Sep 2009 08:14:55 +0000 http://www.ethiopianreview.com/business/?p=2841 Press Trust of India]]> 2841 2009-09-18 01:14:55 2009-09-18 08:14:55 open open den-networks-raises-rs-100-cr-in-pre-ipo-placement publish 0 0 post _edit_lock 1253261696 _edit_last 3 RBI: Onus of fraud probe, management on banks http://www.ethiopianreview.com/business/2844 Fri, 18 Sep 2009 08:16:00 +0000 http://www.ethiopianreview.com/business/?p=2844 BS Reporter]]> 2844 2009-09-18 01:16:00 2009-09-18 08:16:00 open open rbi-onus-of-fraud-probe-management-on-banks publish 0 0 post _edit_lock 1253261761 _edit_last 3 Newsmaker: Captain Girish Kaushik http://www.ethiopianreview.com/business/2849 Fri, 18 Sep 2009 08:18:34 +0000 http://www.ethiopianreview.com/business/2849 Business Standard]]> 2849 2009-09-18 01:18:34 2009-09-18 08:18:34 open open newsmaker-captain-girish-kaushik publish 0 0 post _edit_lock 1253261968 _edit_last 3 Jamal Mecklai: Sufferin' art http://www.ethiopianreview.com/business/2854 Fri, 18 Sep 2009 08:37:15 +0000 http://www.ethiopianreview.com/business/?p=2854 Business Standard ]]> 2854 2009-09-18 01:37:15 2009-09-18 08:37:15 open open jamal-mecklai-sufferin-art publish 0 0 post _edit_lock 1253263037 _edit_last 3 Memoirs of a 'Nasty Brit' http://www.ethiopianreview.com/business/2857 Fri, 18 Sep 2009 08:41:45 +0000 http://www.ethiopianreview.com/business/?p=2857 Business Standard]]> 2857 2009-09-18 01:41:45 2009-09-18 08:41:45 open open memoirs-of-a-nasty-brit publish 0 0 post _edit_lock 1253263307 _edit_last 3 ABG to counter Bharati's bid for Great Offshore http://www.ethiopianreview.com/business/2860 Fri, 18 Sep 2009 08:43:20 +0000 http://www.ethiopianreview.com/business/?p=2860 BS Reporter ]]> 2860 2009-09-18 01:43:20 2009-09-18 08:43:20 open open abg-to-counter-bharatis-bid-for-great-offshore publish 0 0 post _edit_lock 1253263401 _edit_last 3 Buddha gives Infy, Wipro land in Rajarhat http://www.ethiopianreview.com/business/2863 Fri, 18 Sep 2009 08:44:20 +0000 http://www.ethiopianreview.com/business/?p=2863 BS Reporters ]]> 2863 2009-09-18 01:44:20 2009-09-18 08:44:20 open open buddha-gives-infy-wipro-land-in-rajarhat publish 0 0 post _edit_lock 1253263461 _edit_last 3 Ministry order kills pay rise hopes for IIT, IIM faculty http://www.ethiopianreview.com/business/2866 Fri, 18 Sep 2009 08:45:27 +0000 http://www.ethiopianreview.com/business/?p=2866 Business Standard]]> 2866 2009-09-18 01:45:27 2009-09-18 08:45:27 open open ministry-order-kills-pay-rise-hopes-for-iit-iim-faculty publish 0 0 post _edit_lock 1253263528 _edit_last 3 CIC warns IIM-A against withholding information http://www.ethiopianreview.com/business/2869 Fri, 18 Sep 2009 08:46:27 +0000 http://www.ethiopianreview.com/business/?p=2869 Press Trust of India]]> 2869 2009-09-18 01:46:27 2009-09-18 08:46:27 open open cic-warns-iim-a-against-withholding-information publish 0 0 post _edit_lock 1253263587 _edit_last 3 Rlys' ad earnings sagging, need better marketing http://www.ethiopianreview.com/business/2872 Fri, 18 Sep 2009 08:47:40 +0000 http://www.ethiopianreview.com/business/?p=2872 Business Standard]]> 2872 2009-09-18 01:47:40 2009-09-18 08:47:40 open open rlys-ad-earnings-sagging-need-better-marketing publish 0 0 post _edit_lock 1253263660 _edit_last 3 Dabur to launch OTC drugs http://www.ethiopianreview.com/business/2875 Fri, 18 Sep 2009 08:48:52 +0000 http://www.ethiopianreview.com/business/?p=2875 Business Standard ]]> 2875 2009-09-18 01:48:52 2009-09-18 08:48:52 open open dabur-to-launch-otc-drugs publish 0 0 post _edit_lock 1253263733 _edit_last 3 270 76.89.204.116 2009-10-04 19:58:37 2009-10-05 02:58:37 0 0 0 Clixtr launches an iPhone app for real-time photosharing http://www.ethiopianreview.com/business/2878 Fri, 18 Sep 2009 08:50:14 +0000 http://www.ethiopianreview.com/business/?p=2878 VentureBeat ]]> 2878 2009-09-18 01:50:14 2009-09-18 08:50:14 open open click-here-to-find-out-more-tc50-clixtr-launches-an-iphone-app-for-real-time-photosharing publish 0 0 post _edit_lock 1253263842 _edit_last 3 Whuffie Bank wants a new currency based on social reputation http://www.ethiopianreview.com/business/2882 Fri, 18 Sep 2009 08:55:01 +0000 http://www.ethiopianreview.com/business/?p=2882 VentureBeat ]]> 2882 2009-09-18 01:55:01 2009-09-18 08:55:01 open open whuffie-bank-wants-a-new-currency-based-on-social-reputation publish 0 0 post _edit_lock 1253264103 _edit_last 3 The five companies to watch http://www.ethiopianreview.com/business/2885 Fri, 18 Sep 2009 08:57:00 +0000 http://www.ethiopianreview.com/business/?p=2885 VentureBeat ]]> 2885 2009-09-18 01:57:00 2009-09-18 08:57:00 open open the-five-companies-to-watch publish 0 0 post _edit_lock 1253264221 _edit_last 3 RedBeacon, the market for local services, wins TechCrunch50 award http://www.ethiopianreview.com/business/2888 Fri, 18 Sep 2009 08:58:07 +0000 http://www.ethiopianreview.com/business/?p=2888 VentureBeat ]]> 2888 2009-09-18 01:58:07 2009-09-18 08:58:07 open open redbeacon-the-market-for-local-services-wins-techcrunch50-award publish 0 0 post _edit_lock 1253264288 _edit_last 3 Microsoft launches limited edition Xbox 360 Modern Warfare 2 console at $399 http://www.ethiopianreview.com/business/2891 Fri, 18 Sep 2009 08:59:11 +0000 http://www.ethiopianreview.com/business/?p=2891 VentureBeat ]]> 2891 2009-09-18 01:59:11 2009-09-18 08:59:11 open open click-here-to-find-out-more-microsoft-launches-limited-edition-xbox-360-modern-warfare-2-console-at-399 publish 0 0 post _edit_lock 1253264360 _edit_last 3 Is that a supercomputer on your desk? Chip maker AMD takes quad-core processor prices below $99 http://www.ethiopianreview.com/business/2895 Fri, 18 Sep 2009 09:00:24 +0000 http://www.ethiopianreview.com/business/?p=2895 VentureBeat ]]> 2895 2009-09-18 02:00:24 2009-09-18 09:00:24 open open is-that-a-supercomputer-on-your-desk-chip-maker-amd-takes-quad-core-processor-prices-below-99 publish 0 0 post _edit_lock 1253264425 _edit_last 3 Which augmented reality startups will dominate? We rank them. http://www.ethiopianreview.com/business/2898 Fri, 18 Sep 2009 09:03:24 +0000 http://www.ethiopianreview.com/business/?p=2898 Here are some important criteria to look at when assessing the viability of an AR startup: (i) Technology: AR in its primitive form requires markers (watch this demo for an example of printed markers) of some kind or a symbol to generate the graphic overlay on reality. Though necessary in some cases, this not only makes an app harder to use, it also limits the usage and mobility of the app. Also, some apps would require a user to download proprietary (or additional — in case of the demo above) software, which again is necessary for some powerful use cases, but limits the universality of an app. Some of the easier apps can be developed using Flash, which is readily available and free to download. In a nutshell, what makes an app very powerful also makes it less universally available. However, as technology advances and AR becomes more mainstream, I expect that more universal tools (such as Flash) will become powerful enough to embrace AR. (ii) Business Model Several AR apps, like web 2.0 startups and apps, do not have a solid business model behind them except advertising (but then who could have guessed that Google — most of whose revenue comes from online ads — would be vying with Apple for market cap?). This can, in the long term, hinder the ability of a company to invest in better technologies. The companies that scored higher in this category are generally business-to-business companies that sell marketing and other solutions to industries and therefore have strong revenue streams. (iii) Utility No matter how cool an app might look, it has to be useful (see a fairly useless app video here) in order for it to sustain and earn money. Again, from Robert’s blog, the future of AR is mobile (though current hardware limitations can make AR on mobile seriously flawed) and depends heavily on wearable displays. MIT’s Sixth Sense would be a pretty cool and productive application if executed well and done with wearable displays (such as contact lenses, glasses etc.) instead of a projector. So is TAT’s vision of face recognition. HP’s Roku’s Reward is pretty cool in terms of entertainment, and is very mobile but without wearable displays. How far World Builder is from reality is anybody’s guess (WSJ in 1967 predicted that man will land on Mars; cities will thrive under huge, climate controlled domes; man will fly from NYC to Tokyo in under two hours; and that there will be 200,000 computers in the US by year 2000! I’m just saying). Analysis of each company according to Technology, Business Model and Utility Here’s an individual analysis of each company and how it rated according to the above criteria. I rated each category on a scale of 1 to 4, with 1 being the strongest and 4 being the weakest. Then I added scores in each category, and ranked companies based on their total scores. As said earlier, I prefer to place them in tiers rather than giving them absolute ranks. (A) TIER 1 Metaio Metaio is at the forefront of AR technology. They started selling their services and technology to companies but are now moving on to several online apps (such as Focus Features’ online demo for the movie “9″ and Universal Home Entertainment’s online application), retail apps (Lego in store application), and mobile apps (iLiving for placing furniture, Virtual Santa, and Bunny&Me). Their superior technology sometimes requires additional plugins or software but also makes their products and services very useful to many industries, thus enabling them to make money from licensing and services that few other AR players can. However, they have limited reach in the mobile space, and this might prevent them from reaching the mass market. Score: Technology 1; Utility 2; Business Model 1 Total Immersion Total Immersion along with Metaio is one of the strongest AR players. They also have solutions in several verticals including amusement parks, consumer products, digital marketing, events/exhibitions, museums, and retail. Check out their Magical Mirror demo under their digital marketing portfolio. They, like Metaio (though Metaio is moving into mobile quickly), are noticeably largely absent from the mobile space. I categorize them closest to Metaio. Score: Technology 1; Utility 2; Business Model 1 (B) TIER 2 Zugara Zugara is a privately funded startup based in Southern California. They are basically a marketing company, but they do a lot of in house product development with a goal of selling it to agencies and other business partners. Their WebCam Social Shopper is a pretty neat concept and lets one “try” clothes from the comfort of one’s home. It does have some limitations as you’re required to print markers in order for it to work accurately, and that might hinder its widespread use, but nevertheless a very interesting and useful concept. They hope to license the technology to online retailers. Score: Technology 3; Utility 2; Business Model 3 Layar Layar, a Netherlands-based startup, is perhaps getting the most buzz these days. (That screenshot up top is from Layar). They have built up a number of partnerships to add “layars” on top of GPS. For example, you can see real estate listings, tourist guides, and Brightkite updates through your phone camera. Key to their PR success so far is not their technology but partnerships they have developed. Though there are many other startups (Mobilizy, Acrosshair, Tonchidot) with similar applications, Layar so far has taken lead on the partnership front. Their business model is primarily based on advertising, although if they can become a dominant “AR browser”, you can expect them to perhaps start charging rent to develop apps on their platform. They, like other mobile AR apps, are limited by hardware and GPS. Score: Technology 3; Utility 3; Business Model 3 Mobilizy Mobilizy is an Austrian-based privately funded startup best-known for their Wikitude World Browser and recently launched Augmented Navigation, which I find terribly dangerous to use and not very useful (for example, you are unable to see the map beyond your vision). They, along with Layar, are getting a lot of traction in the blogosphere. Their applications, although interesting, are simple mash ups of GPS and content and are not very differentiated from Layar. Their business model is primarily based on advertising, although in the future they can license their augmented navigation to GPS providers. Score: Technology 3; Utility 3; Business Model 3 Tonchidot Tonchidot, a Japan-based startup, has developed SeakiCamera — a social tagging application. They, too, are limited by the accuracy of GPS — for example, it’s one thing to tag a large building, and another to tag a small object. However, as technology improves, we will see more applications of such type. Score: Technology 3; Utility 3; Business Model 3 (C) TIER 3 Acrossair, int13, and Ogmento have developed some interesting apps as well. However I think their technology, like that in Tier 2, is relatively simple, and their portfolio is limited. This puts them in a slightly lower position than those in the second tier. I also interviewed Earthmine, although I think it would be incorrect to compare them with AR companies, as they position themselves as an AR enabler and collect 3D geospatial data for large cities. - By Saad Fazil | VentureBeat ]]> 2898 2009-09-18 02:03:24 2009-09-18 09:03:24 open open which-augmented-reality-startups-will-dominate-we-rank-them publish 0 0 post _edit_lock 1253264605 _edit_last 3 Will Apple be interested in ARM’s newest gadget processors? http://www.ethiopianreview.com/business/2902 Fri, 18 Sep 2009 09:04:04 +0000 http://www.ethiopianreview.com/business/?p=2902 VentureBeat ]]> 2902 2009-09-18 02:04:04 2009-09-18 09:04:04 open open will-apple-be-interested-in-arm%e2%80%99s-newest-gadget-processors publish 0 0 post _edit_lock 1253264645 _edit_last 3 Seagate launches a network drive that you can use to get your data, anytime, anywhere http://www.ethiopianreview.com/business/2905 Fri, 18 Sep 2009 09:04:59 +0000 http://www.ethiopianreview.com/business/?p=2905 VentureBeat ]]> 2905 2009-09-18 02:04:59 2009-09-18 09:04:59 open open click-here-to-find-out-more-seagate-launches-a-network-drive-that-you-can-use-to-get-your-data-anytime-anywhere publish 0 0 post _edit_lock 1253264709 _edit_last 3 TV network taps game startups to launch social game portal http://www.ethiopianreview.com/business/2909 Fri, 18 Sep 2009 09:05:59 +0000 http://www.ethiopianreview.com/business/?p=2909 VentureBeat ]]> 2909 2009-09-18 02:05:59 2009-09-18 09:05:59 open open click-here-to-find-out-more-tv-network-taps-game-startups-to-launch-social-game-portal publish 0 0 post _edit_lock 1253264766 _edit_last 3 With Uncharted 2, developers shoot for a movie-like blockbuster http://www.ethiopianreview.com/business/2913 Fri, 18 Sep 2009 09:08:25 +0000 http://www.ethiopianreview.com/business/?p=2913 VentureBeat ]]> 2913 2009-09-18 02:08:25 2009-09-18 09:08:25 open open with-uncharted-2-developers-shoot-for-a-movie-like-blockbuster publish 0 0 post _edit_lock 1253264907 _edit_last 3 Can you trust any VCs under 40? http://www.ethiopianreview.com/business/2916 Fri, 18 Sep 2009 09:10:28 +0000 http://www.ethiopianreview.com/business/?p=2916 VentureBeat ]]> 2916 2009-09-18 02:10:28 2009-09-18 09:10:28 open open can-you-trust-any-vcs-under-40 publish 0 0 post _edit_lock 1253265029 _edit_last 3 High investment return expectations may limit VC spending http://www.ethiopianreview.com/business/2919 Fri, 18 Sep 2009 09:11:40 +0000 http://www.ethiopianreview.com/business/?p=2919 VentureBeat ]]> 2919 2009-09-18 02:11:40 2009-09-18 09:11:40 open open click-here-to-find-out-more-high-investment-return-expectations-may-limit-vc-spending publish 0 0 post _edit_lock 1253265108 _edit_last 3 SBI upbeat on foreign growth, to scale up Singapore ops http://www.ethiopianreview.com/business/2923 Fri, 18 Sep 2009 09:12:52 +0000 http://www.ethiopianreview.com/business/?p=2923 Press Trust of India]]> 2923 2009-09-18 02:12:52 2009-09-18 09:12:52 open open sbi-upbeat-on-foreign-growth-to-scale-up-singapore-ops publish 0 0 post _edit_lock 1253265173 _edit_last 3 Bank stocks surge on hope of better profits http://www.ethiopianreview.com/business/2926 Fri, 18 Sep 2009 09:14:19 +0000 http://www.ethiopianreview.com/business/?p=2926 BRIGHT OUTLOOK   Price on BSE in Rs % chg Sep 14, '09 Sep 16, '09 Indian Bank 147.19 163.25 10.90 ING Vysya Bank 259.60 287.70 10.80 Allahabad Bank 106.30 115.55 8.70 Dena Bank 57.65 62.50 8.40 Union Bank 226.75 245.40 8.20 Lakshmi Vilas 108.25 117.05 8.10 IOB 99.90 107.55 7.70 IDBI Bank 105.65 113.30 7.20 Canara Bank 298.85 320.45 7.20 Yes Bank 177.85 190.35 7.00 The index has outperformed the Sensex by rising 151 per cent from its low of 3,728.22 on March 5, 2009. In comparison, the Sensex has risen 103 per cent from 8,197.92 to 16,677.04 during the period. Vaibhav Agarwal, a banking analyst with Angel Broking, said the indication that the Reserve Bank of India might increase the limit for held-to-maturity (HTM) category of bonds for banks was a short-term positive. Plus, the valuation gap for small public sector banks was getting corrected, he said. The increase in the HTM limit is expected to reduce the mark-to-market (MTM) risks related to long-term bond portfolio of banks. Many banks have already reached the HTM limit. Long-term securities picked up in excess of the HTM limit have to be put in the available-for-sale (AFS) category, where the portfolio is marked to market. If bonds yields start rising (meaning bond prices are declining), banks have to provide for erosion in value of bonds held in the AFS portfolio. Analysts said a sharp surge in advance tax payments in the second installment raised expectations of robust second-quarter (July-September 2009) results. The banking sector posted 63 per cent jump in net profit during the quarter ended June 2009. Increased spending on consumer durables and automobiles and improved demand for housing has spurred interest in bank stocks, say analysts. Retail lending has been a key profit driver for banks in recent times, they say. Indian Bank, ING Vysya Bank, Allahabad Bank, Dena Bank, Union Bank of India, Lakshmi Vilas Bank and Indian Overseas Bank have appreciated between 8 per cent and 11 per cent in the last two days. The SBI stock crossed the Rs 2,000 mark after a gap of 18 months. The stock has gained 7 per cent in last two days from Rs 1,956.15 to Rs 2,089.60 on reports that the lender has paid Rs 1,838 crore as the second installment of advance tax compared to Rs 1,500 crore during the same period of the previous year. ICICI Bank gained 5 per cent to Rs 867.55 (Rs 825.55) while Punjab National Bank rose 7 per cent to Rs 773.70 (Rs 723.65). - BS Reporter]]> 2926 2009-09-18 02:14:19 2009-09-18 09:14:19 open open bank-stocks-surge-on-hope-of-better-profits publish 0 0 post _edit_lock 1253265260 _edit_last 3 LIC Housing Finance raises $135 million in stock sale http://www.ethiopianreview.com/business/2929 Fri, 18 Sep 2009 09:16:12 +0000 http://www.ethiopianreview.com/business/?p=2929 THE SPREAD
Instrument-wise investment (Rs crore)   Stock exchange securities % change Loans % change Total % change 2004-05 355634.7 19.51 37529.5 18.02 393164.2 19.37 2005-06 450557.2 26.69 37135.3 -1.05 487692.5 24.04 2006-07 480426.4 6.63 41307.8 11.24 521734.2 6.98 2007-08 590466.6 22.90 45281.0 9.62 635747.6 21.85 2008-09 715710.4 21.21 47181.4 4.20 762891.8 20.00 Note: Percentage change over pervious year                                         Source: LIC - Bloomberg]]> 2929 2009-09-18 02:16:12 2009-09-18 09:16:12 open open lic-housing-finance-raises-135-million-in-stock-sale publish 0 0 post _edit_lock 1253265374 _edit_last 3 RBI, bankers to mull fund-raising on Friday http://www.ethiopianreview.com/business/2932 Fri, 18 Sep 2009 09:17:10 +0000 http://www.ethiopianreview.com/business/?p=2932 BS Reporter]]> 2932 2009-09-18 02:17:10 2009-09-18 09:17:10 open open rbi-bankers-to-mull-fund-raising-on-friday publish 0 0 post _edit_lock 1253265431 _edit_last 3 Bank fraud- Prove it! http://www.ethiopianreview.com/business/2935 Fri, 18 Sep 2009 09:18:32 +0000 http://www.ethiopianreview.com/business/?p=2935 Business Standard ]]> 2935 2009-09-18 02:18:32 2009-09-18 09:18:32 open open bank-fraud-prove-it publish 0 0 post _edit_lock 1253265513 _edit_last 3 GHC, Danieli sign accord for steel mill expansion http://www.ethiopianreview.com/business/2941 Fri, 18 Sep 2009 09:21:49 +0000 http://www.ethiopianreview.com/business/?p=2941 Gulfnews]]> 2941 2009-09-18 02:21:49 2009-09-18 09:21:49 open open ghc-danieli-sign-accord-for-steel-mill-expansion publish 0 0 post _edit_lock 1253265932 _edit_last 3 SBI launches services from DIFC http://www.ethiopianreview.com/business/2944 Fri, 18 Sep 2009 09:23:17 +0000 http://www.ethiopianreview.com/business/?p=2944 Gulfnews]]> 2944 2009-09-18 02:23:17 2009-09-18 09:23:17 open open sbi-launches-services-from-difc publish 0 0 post _edit_lock 1253265798 _edit_last 3 JRG International launches new trading solution module http://www.ethiopianreview.com/business/2947 Fri, 18 Sep 2009 09:24:31 +0000 http://www.ethiopianreview.com/business/?p=2947 Gulfnews]]> 2947 2009-09-18 02:24:31 2009-09-18 09:24:31 open open jrg-international-launches-new-trading-solution-module publish 0 0 post _edit_lock 1253265871 _edit_last 3 Japan awaits Buffett's approval http://www.ethiopianreview.com/business/2951 Fri, 18 Sep 2009 09:27:30 +0000 http://www.ethiopianreview.com/business/?p=2951 Bloomberg]]> 2951 2009-09-18 02:27:30 2009-09-18 09:27:30 open open japan-awaits-buffetts-approval publish 0 0 post _edit_lock 1253266051 _edit_last 3 Airline industry set to suffer $500m loss http://www.ethiopianreview.com/business/2953 Fri, 18 Sep 2009 09:29:14 +0000 http://www.ethiopianreview.com/business/?p=2953 Gulfnews]]> 2953 2009-09-18 02:29:14 2009-09-18 09:29:14 open open airline-industry-set-to-suffer-500m-loss publish 0 0 post _edit_lock 1253266155 _edit_last 3 US discusses strategy for sale of Citigroup stake http://www.ethiopianreview.com/business/2956 Fri, 18 Sep 2009 09:30:09 +0000 http://www.ethiopianreview.com/business/?p=2956 Bloomberg]]> 2956 2009-09-18 02:30:09 2009-09-18 09:30:09 open open us-discusses-strategy-for-sale-of-citigroup-stake publish 0 0 post _edit_lock 1253266210 _edit_last 3 Dubai World sues former employee in US court http://www.ethiopianreview.com/business/2959 Fri, 18 Sep 2009 09:31:07 +0000 http://www.ethiopianreview.com/business/?p=2959 Gulfnews]]> 2959 2009-09-18 02:31:07 2009-09-18 09:31:07 open open dubai-world-sues-former-employee-in-us-court publish 0 0 post _edit_lock 1253266268 _edit_last 3 DP World rules out talks over stake sales http://www.ethiopianreview.com/business/2962 Fri, 18 Sep 2009 09:31:59 +0000 http://www.ethiopianreview.com/business/?p=2962 Reuters]]> 2962 2009-09-18 02:31:59 2009-09-18 09:31:59 open open dp-world-rules-out-talks-over-stake-sales publish 0 0 post _edit_lock 1253266320 _edit_last 3 UAE shines on wealth index http://www.ethiopianreview.com/business/2965 Fri, 18 Sep 2009 09:32:55 +0000 http://www.ethiopianreview.com/business/?p=2965 Gulfnews]]> 2965 2009-09-18 02:32:55 2009-09-18 09:32:55 open open uae-shines-on-wealth-index publish 0 0 post _edit_lock 1253266377 _edit_last 3 Terror tracking network system by 2011-12: Home Minister http://www.ethiopianreview.com/business/2968 Fri, 18 Sep 2009 09:33:51 +0000 http://www.ethiopianreview.com/business/?p=2968 Press Trust of India ]]> 2968 2009-09-18 02:33:51 2009-09-18 09:33:51 open open terror-tracking-network-system-by-2011-12-home-minister publish 0 0 post _edit_lock 1253266432 _edit_last 3 IRDA to come out with disclosure norms for IPO : Narayan http://www.ethiopianreview.com/business/2971 Fri, 18 Sep 2009 09:34:41 +0000 http://www.ethiopianreview.com/business/?p=2971 Press Trust of India]]> 2971 2009-09-18 02:34:41 2009-09-18 09:34:41 open open irda-to-come-out-with-disclosure-norms-for-ipo-narayan publish 0 0 post _edit_lock 1253266482 _edit_last 3 JSW Energy to begin commercial ops at Rajasthan project http://www.ethiopianreview.com/business/2974 Fri, 18 Sep 2009 09:35:37 +0000 http://www.ethiopianreview.com/business/?p=2974 BS Reporter]]> 2974 2009-09-18 02:35:37 2009-09-18 09:35:37 open open jsw-energy-to-begin-commercial-ops-at-rajasthan-project publish 0 0 post _edit_lock 1253266538 _edit_last 3 Japan to say fiscal spending important at G-20 summit: Fujii http://www.ethiopianreview.com/business/2977 Fri, 18 Sep 2009 09:36:32 +0000 http://www.ethiopianreview.com/business/?p=2977 PTI]]> 2977 2009-09-18 02:36:32 2009-09-18 09:36:32 open open japan-to-say-fiscal-spending-important-at-g-20-summit-fujii publish 0 0 post _edit_lock 1253266593 _edit_last 3 Bombay HC restrains Sesa Goa's mining operations http://www.ethiopianreview.com/business/2980 Fri, 18 Sep 2009 09:37:35 +0000 http://www.ethiopianreview.com/business/?p=2980 Press Trust of India]]> 2980 2009-09-18 02:37:35 2009-09-18 09:37:35 open open bombay-hc-restrains-sesa-goas-mining-operations publish 0 0 post _edit_lock 1253266656 _edit_last 3 Jayshree Chemicals' promoter firm sells shares http://www.ethiopianreview.com/business/2983 Fri, 18 Sep 2009 09:38:38 +0000 http://www.ethiopianreview.com/business/?p=2983 BS Reporter]]> 2983 2009-09-18 02:38:38 2009-09-18 09:38:38 open open jayshree-chemicals-promoter-firm-sells-shares publish 0 0 post _edit_lock 1253266719 _edit_last 3 High-powered panel not in favour of NMDC-KIOCL merger http://www.ethiopianreview.com/business/2986 Fri, 18 Sep 2009 09:39:45 +0000 http://www.ethiopianreview.com/business/?p=2986 Press Trust of India]]> 2986 2009-09-18 02:39:45 2009-09-18 09:39:45 open open high-powered-panel-not-in-favour-of-nmdc-kiocl-merger publish 0 0 post _edit_lock 1253266786 _edit_last 3 Bank of Rajasthan releases pledged shares of Kirloskar Electric http://www.ethiopianreview.com/business/2989 Fri, 18 Sep 2009 09:40:35 +0000 http://www.ethiopianreview.com/business/?p=2989 BS Reporter]]> 2989 2009-09-18 02:40:35 2009-09-18 09:40:35 open open bank-of-rajasthan-releases-pledged-shares-of-kirloskar-electric publish 0 0 post _edit_lock 1253266836 _edit_last 3 Milkfed to raise rates of sweets by 14% from Oct 1 in Punjab http://www.ethiopianreview.com/business/2992 Fri, 18 Sep 2009 09:41:23 +0000 http://www.ethiopianreview.com/business/?p=2992 Press Trust of India]]> 2992 2009-09-18 02:41:23 2009-09-18 09:41:23 open open milkfed-to-raise-rates-of-sweets-by-14-from-oct-1-in-punjab publish 0 0 post _edit_lock 1253266884 _edit_last 3 KKR hikes stake in Aricent to 79% for $225 million http://www.ethiopianreview.com/business/2995 Fri, 18 Sep 2009 09:42:08 +0000 http://www.ethiopianreview.com/business/?p=2995 BS Reporter]]> 2995 2009-09-18 02:42:08 2009-09-18 09:42:08 open open kkr-hikes-stake-in-aricent-to-79-for-225-million publish 0 0 post _edit_lock 1253266929 _edit_last 3 IFCI remains committed to inducting strategic partner: CEO http://www.ethiopianreview.com/business/2998 Fri, 18 Sep 2009 09:43:03 +0000 http://www.ethiopianreview.com/business/?p=2998 Press Trust of India ]]> 2998 2009-09-18 02:43:03 2009-09-18 09:43:03 open open ifci-remains-committed-to-inducting-strategic-partner-ceo publish 0 0 post _edit_lock 1253266984 _edit_last 3 Glenmark gets US FDA nod for hypertension drug http://www.ethiopianreview.com/business/3001 Fri, 18 Sep 2009 09:44:12 +0000 http://www.ethiopianreview.com/business/?p=3001 Press Trust of India]]> 3001 2009-09-18 02:44:12 2009-09-18 09:44:12 open open glenmark-gets-us-fda-nod-for-hypertension-drug publish 0 0 post _edit_lock 1253267054 _edit_last 3 Sensex flat; ICICI Bank down 3% http://www.ethiopianreview.com/business/3004 Fri, 18 Sep 2009 09:45:12 +0000 http://www.ethiopianreview.com/business/?p=3004 BS Reporter]]> 3004 2009-09-18 02:45:12 2009-09-18 09:45:12 open open sensex-flat-icici-bank-down-3 publish 0 0 post _edit_lock 1253267114 _edit_last 3 Recession made IT majors rethink biz models: KPMG http://www.ethiopianreview.com/business/3007 Fri, 18 Sep 2009 09:46:09 +0000 http://www.ethiopianreview.com/business/?p=3007 Press Trust of India]]> 3007 2009-09-18 02:46:09 2009-09-18 09:46:09 open open recession-made-it-majors-rethink-biz-models-kpmg publish 0 0 post _edit_lock 1253267170 _edit_last 3 Mini Dairy project in Idukki, plans to start in TN http://www.ethiopianreview.com/business/3010 Fri, 18 Sep 2009 09:47:17 +0000 http://www.ethiopianreview.com/business/?p=3010 Press Trust of India]]> 3010 2009-09-18 02:47:17 2009-09-18 09:47:17 open open mini-dairy-project-in-idukki-plans-to-start-in-tn publish 0 0 post _edit_lock 1253267238 _edit_last 3 Lower price will hurt gas industry: Bernsstein Research http://www.ethiopianreview.com/business/3013 Fri, 18 Sep 2009 09:48:05 +0000 http://www.ethiopianreview.com/business/?p=3013 Press Trust of India]]> 3013 2009-09-18 02:48:05 2009-09-18 09:48:05 open open lower-price-will-hurt-gas-industry-bernsstein-research publish 0 0 post _edit_lock 1253267286 _edit_last 3 Production cut likely; 2 more difficult yrs ahead: Airbus CEO http://www.ethiopianreview.com/business/3016 Fri, 18 Sep 2009 09:48:55 +0000 http://www.ethiopianreview.com/business/?p=3016 Press Trust of India]]> 3016 2009-09-18 02:48:55 2009-09-18 09:48:55 open open production-cut-likely-2-more-difficult-yrs-ahead-airbus-ceo publish 0 0 post _edit_lock 1253267336 _edit_last 3 Indian company bags $250 mn building project in Colombo http://www.ethiopianreview.com/business/3019 Fri, 18 Sep 2009 09:50:45 +0000 http://www.ethiopianreview.com/business/?p=3019 PTI ]]> 3019 2009-09-18 02:50:45 2009-09-18 09:50:45 open open indian-company-bags-250-mn-building-project-in-colombo publish 0 0 post _edit_lock 1253267447 _edit_last 3 Colgate: Little to smile about http://www.ethiopianreview.com/business/3022 Fri, 18 Sep 2009 09:52:18 +0000 http://www.ethiopianreview.com/business/?p=3022 Business Standard ]]> 3022 2009-09-18 02:52:18 2009-09-18 09:52:18 open open colgate-little-to-smile-about publish 0 0 post _edit_lock 1253267539 _edit_last 3 PVR: Box office blues http://www.ethiopianreview.com/business/3025 Fri, 18 Sep 2009 09:53:49 +0000 http://www.ethiopianreview.com/business/?p=3025 Business Standard ]]> 3025 2009-09-18 02:53:49 2009-09-18 09:53:49 open open pvr-box-office-blues publish 0 0 post _edit_lock 1253267631 _edit_last 3 Sort of in the black http://www.ethiopianreview.com/business/3028 Fri, 18 Sep 2009 09:54:58 +0000 http://www.ethiopianreview.com/business/?p=3028 Business Standard ]]> 3028 2009-09-18 02:54:58 2009-09-18 09:54:58 open open sort-of-in-the-black publish 0 0 post _edit_lock 1253267699 _edit_last 3 Liquid markets http://www.ethiopianreview.com/business/3031 Fri, 18 Sep 2009 09:56:07 +0000 http://www.ethiopianreview.com/business/?p=3031 Business Standard ]]> 3031 2009-09-18 02:56:07 2009-09-18 09:56:07 open open liquid-markets publish 0 0 post _edit_lock 1253267768 _edit_last 3 Lessons from Jet http://www.ethiopianreview.com/business/3034 Fri, 18 Sep 2009 09:57:16 +0000 http://www.ethiopianreview.com/business/?p=3034 Business Standard]]> 3034 2009-09-18 02:57:16 2009-09-18 09:57:16 open open lessons-from-jet publish 0 0 post _edit_lock 1253267838 _edit_last 3 No price caps, please http://www.ethiopianreview.com/business/3037 Fri, 18 Sep 2009 09:58:27 +0000 http://www.ethiopianreview.com/business/?p=3037 Business Standard]]> 3037 2009-09-18 02:58:27 2009-09-18 09:58:27 open open no-price-caps-please publish 0 0 post _edit_lock 1253267908 _edit_last 3 Nitin Desai: A feudal capitalism http://www.ethiopianreview.com/business/3040 Fri, 18 Sep 2009 09:59:30 +0000 http://www.ethiopianreview.com/business/?p=3040 Business Standard]]> 3040 2009-09-18 02:59:30 2009-09-18 09:59:30 open open nitin-desai-a-feudal-capitalism publish 0 0 post _edit_lock 1253267971 _edit_last 3 Shyamal Majumdar: Calling the sick-out bluff http://www.ethiopianreview.com/business/3043 Fri, 18 Sep 2009 10:00:31 +0000 http://www.ethiopianreview.com/business/?p=3043 Business Standard ]]> 3043 2009-09-18 03:00:31 2009-09-18 10:00:31 open open shyamal-majumdar-calling-the-sick-out-bluff publish 0 0 post _edit_lock 1253268031 _edit_last 3 Kanika Datta: High standards for low cost http://www.ethiopianreview.com/business/3047 Fri, 18 Sep 2009 10:01:26 +0000 http://www.ethiopianreview.com/business/?p=3047 Business Standard]]> 3047 2009-09-18 03:01:26 2009-09-18 10:01:26 open open kanika-datta-high-standards-for-low-cost publish 0 0 post _edit_lock 1253268088 _edit_last 3 I tried ma'am http://www.ethiopianreview.com/business/3050 Fri, 18 Sep 2009 10:02:38 +0000 http://www.ethiopianreview.com/business/?p=3050 Business Standard]]> 3050 2009-09-18 03:02:38 2009-09-18 10:02:38 open open i-tried-maam publish 0 0 post _edit_lock 1253268159 _edit_last 3 Milking it http://www.ethiopianreview.com/business/3053 Fri, 18 Sep 2009 10:03:20 +0000 http://www.ethiopianreview.com/business/?p=3053 Business Standard]]> 3053 2009-09-18 03:03:20 2009-09-18 10:03:20 open open milking-it publish 0 0 post _edit_lock 1253268201 _edit_last 3 Missing budget table http://www.ethiopianreview.com/business/3056 Fri, 18 Sep 2009 10:04:06 +0000 http://www.ethiopianreview.com/business/?p=3056 Business Standard]]> 3056 2009-09-18 03:04:06 2009-09-18 10:04:06 open open missing-budget-table publish 0 0 post _edit_lock 1253268247 _edit_last 3 Letters: UID is worth it http://www.ethiopianreview.com/business/3059 Fri, 18 Sep 2009 10:04:54 +0000 http://www.ethiopianreview.com/business/?p=3059 Business Standard]]> 3059 2009-09-18 03:04:54 2009-09-18 10:04:54 open open letters-uid-is-worth-it publish 0 0 post _edit_lock 1253268295 _edit_last 3 Letters: Is it? http://www.ethiopianreview.com/business/3062 Fri, 18 Sep 2009 10:06:02 +0000 http://www.ethiopianreview.com/business/?p=3062 Business Standard]]> 3062 2009-09-18 03:06:02 2009-09-18 10:06:02 open open letters-is-it publish 0 0 post _edit_lock 1253268363 _edit_last 3 Shuchi Bansal: MyWay or the highway http://www.ethiopianreview.com/business/3065 Fri, 18 Sep 2009 10:07:29 +0000 http://www.ethiopianreview.com/business/?p=3065 Business Standard ]]> 3065 2009-09-18 03:07:29 2009-09-18 10:07:29 open open shuchi-bansal-myway-or-the-highway publish 0 0 post _edit_lock 1253268450 _edit_last 3 Sunil Jain: Bharat holds the key http://www.ethiopianreview.com/business/3068 Fri, 18 Sep 2009 10:09:58 +0000 http://www.ethiopianreview.com/business/?p=3068 Rural demand today accounts for 40 per cent of all scooter purchases, 48 per cent for motorcycles, 44 per cent for televisions, 63 per cent for edible oils and so on. So far, anecdotal evidence suggests demand in rural India is holding up. Watch this space.
The jury is still out on rural consumption
Rural share of Consumer Demand (%)
  FY96 FY02 FY10E
Scooters 33.1 39.4 39.9
Motorcycles 47.3 39.8 48.3
Mopeds 52.7 58.2 57.7
Cars/jeeps 2.1 8.0 10.9
Automotive 37.9 36.0 37.9
TVs 54.0 54.5 44.2
Other white goods 23.8 23.9 23.7
All fans 50.0 56.9 56.7
Other low-cost items 58.1 60.1 61.3
Shampoos 27.2 31.9 33.0
Edible oils 64.3 67.1 62.9
Washing cakes 68.7 71.4 75.6
Source: NCAER, Citibank
- By Sunil Jain | Business Standard]]> 3068 2009-09-18 03:09:58 2009-09-18 10:09:58 open open sunil-jain-bharat-holds-the-key publish 0 0 post _edit_lock 1253268600 _edit_last 3 Jonathan Weil: Putting the SEC in a spot http://www.ethiopianreview.com/business/3072 Fri, 18 Sep 2009 10:10:59 +0000 http://www.ethiopianreview.com/business/?p=3072 Business Standard]]> 3072 2009-09-18 03:10:59 2009-09-18 10:10:59 open open jonathan-weil-putting-the-sec-in-a-spot publish 0 0 post _edit_lock 1253268689 _edit_last 3 'The nature of the rally is not clear' http://www.ethiopianreview.com/business/3078 Fri, 18 Sep 2009 10:12:32 +0000 http://www.ethiopianreview.com/business/?p=3078 Business Standard ]]> 3078 2009-09-18 03:12:32 2009-09-18 10:12:32 open open the-nature-of-the-rally-is-not-clear publish 0 0 post _edit_lock 1253268753 _edit_last 3 Sadanand Menon: Of hunger and its eradication http://www.ethiopianreview.com/business/3081 Fri, 18 Sep 2009 10:13:54 +0000 http://www.ethiopianreview.com/business/?p=3081 Business Standard ]]> 3081 2009-09-18 03:13:54 2009-09-18 10:13:54 open open sadanand-menon-of-hunger-and-its-eradication publish 0 0 post _edit_lock 1253268835 _edit_last 3 The track is closed http://www.ethiopianreview.com/business/3084 Fri, 18 Sep 2009 10:14:35 +0000 http://www.ethiopianreview.com/business/?p=3084 Business Standard]]> 3084 2009-09-18 03:14:35 2009-09-18 10:14:35 open open the-track-is-closed publish 0 0 post _edit_lock 1253268876 _edit_last 3 That's diplomacy http://www.ethiopianreview.com/business/3087 Fri, 18 Sep 2009 10:15:21 +0000 http://www.ethiopianreview.com/business/?p=3087 Business Standard]]> 3087 2009-09-18 03:15:21 2009-09-18 10:15:21 open open thats-diplomacy publish 0 0 post _edit_lock 1253268921 _edit_last 3 Letters: Full of gas http://www.ethiopianreview.com/business/3090 Fri, 18 Sep 2009 10:16:08 +0000 http://www.ethiopianreview.com/business/?p=3090 Business Standard]]> 3090 2009-09-18 03:16:08 2009-09-18 10:16:08 open open letters-full-of-gas publish 0 0 post _edit_lock 1253268968 _edit_last 3 Automatic digging http://www.ethiopianreview.com/business/3093 Fri, 18 Sep 2009 10:17:09 +0000 http://www.ethiopianreview.com/business/?p=3093 Business Standard ]]> 3093 2009-09-18 03:17:09 2009-09-18 10:17:09 open open automatic-digging publish 0 0 post _edit_lock 1253269030 _edit_last 3 The Zuma show http://www.ethiopianreview.com/business/3096 Fri, 18 Sep 2009 10:18:39 +0000 http://www.ethiopianreview.com/business/?p=3096 Business Standard ]]> 3096 2009-09-18 03:18:39 2009-09-18 10:18:39 open open the-zuma-show publish 0 0 post _edit_lock 1253269120 _edit_last 3 Larsen & Toubro: Orders aplenty http://www.ethiopianreview.com/business/3099 Fri, 18 Sep 2009 10:19:42 +0000 http://www.ethiopianreview.com/business/?p=3099 Business Standard ]]> 3099 2009-09-18 03:19:42 2009-09-18 10:19:42 open open larsen-toubro-orders-aplenty publish 0 0 post _edit_lock 1253269183 _edit_last 3 Power Grid: Capex interrupted http://www.ethiopianreview.com/business/3102 Fri, 18 Sep 2009 10:21:09 +0000 http://www.ethiopianreview.com/business/?p=3102 Business Standard ]]> 3102 2009-09-18 03:21:09 2009-09-18 10:21:09 open open power-grid-capex-interrupted publish 0 0 post _edit_lock 1253269276 _edit_last 3 The best vs the good http://www.ethiopianreview.com/business/3106 Fri, 18 Sep 2009 10:22:25 +0000 http://www.ethiopianreview.com/business/?p=3106 Business Standard]]> 3106 2009-09-18 03:22:25 2009-09-18 10:22:25 open open the-best-vs-the-good publish 0 0 post _edit_lock 1253269346 _edit_last 3 The Fennell effect http://www.ethiopianreview.com/business/3109 Fri, 18 Sep 2009 10:23:24 +0000 http://www.ethiopianreview.com/business/?p=3109 Business Standard]]> 3109 2009-09-18 03:23:24 2009-09-18 10:23:24 open open the-fennell-effect publish 0 0 post _edit_lock 1253269405 _edit_last 3 Jaimini Bhagwati: G20 and business as usual? http://www.ethiopianreview.com/business/3112 Fri, 18 Sep 2009 10:27:25 +0000 http://www.ethiopianreview.com/business/?p=3112 Business Standard ]]> 3112 2009-09-18 03:27:25 2009-09-18 10:27:25 open open jaimini-bhagwati-g20-and-business-as-usual publish 0 0 post _edit_lock 1253269646 _edit_last 3 2357 86.57.133.101 2009-10-25 14:52:30 2009-10-25 21:52:30 0 0 0 One year on: lessons learnt from the global crisis http://www.ethiopianreview.com/business/3118 Fri, 18 Sep 2009 10:57:39 +0000 http://www.ethiopianreview.com/business/?p=3118 Gulfnews]]> 3118 2009-09-18 03:57:39 2009-09-18 10:57:39 open open one-year-on-lessons-learnt-from-the-global-crisis publish 0 0 post _edit_lock 1253271476 _edit_last 3 Bernanke Rex http://www.ethiopianreview.com/business/3123 Fri, 18 Sep 2009 11:02:01 +0000 http://www.ethiopianreview.com/business/?p=3123 Portfolio.com]]> 3123 2009-09-18 04:02:01 2009-09-18 11:02:01 open open bernanke-rex publish 0 0 post _edit_lock 1253271722 _edit_last 3 Racing the Clock to E-Verify http://www.ethiopianreview.com/business/3126 Fri, 18 Sep 2009 11:03:23 +0000 http://www.ethiopianreview.com/business/?p=3126 Portfolio.com]]> 3126 2009-09-18 04:03:23 2009-09-18 11:03:23 open open racing-the-clock-to-e-verify publish 0 0 post _edit_lock 1253271817 _edit_last 3 485 66.75.75.17 2009-10-05 10:16:36 2009-10-05 17:16:36 0 0 0 Hummer's Next Ride http://www.ethiopianreview.com/business/3130 Fri, 18 Sep 2009 11:05:24 +0000 http://www.ethiopianreview.com/business/?p=3130 Portfolio.com]]> 3130 2009-09-18 04:05:24 2009-09-18 11:05:24 open open hummers-next-ride publish 0 0 post _edit_lock 1253271925 _edit_last 3 Shot in the Arm http://www.ethiopianreview.com/business/3133 Fri, 18 Sep 2009 11:07:07 +0000 http://www.ethiopianreview.com/business/?p=3133 Portfolio.com]]> 3133 2009-09-18 04:07:07 2009-09-18 11:07:07 open open shot-in-the-arm publish 0 0 post _edit_lock 1253272027 _edit_last 3 Ownership Is Sweet http://www.ethiopianreview.com/business/3136 Fri, 18 Sep 2009 11:10:34 +0000 http://www.ethiopianreview.com/business/?p=3136 Portfolio.com]]> 3136 2009-09-18 04:10:34 2009-09-18 11:10:34 open open ownership-is-sweet publish 0 0 post _edit_lock 1253272236 _edit_last 3 Help! The IRS Is After My Offshore Account http://www.ethiopianreview.com/business/3139 Fri, 18 Sep 2009 11:13:00 +0000 http://www.ethiopianreview.com/business/?p=3139 Portfolio.com]]> 3139 2009-09-18 04:13:00 2009-09-18 11:13:00 open open help-the-irs-is-after-my-offshore-account publish 0 0 post _edit_lock 1253272381 _edit_last 3 FEMA moves in to aid flood victims http://www.ethiopianreview.com/business/3144 Fri, 18 Sep 2009 13:49:09 +0000 http://www.ethiopianreview.com/business/?p=3144 Business First of Buffalo]]> 3144 2009-09-18 06:49:09 2009-09-18 13:49:09 open open fema-moves-in-to-aid-flood-victims publish 0 0 post _edit_lock 1253281751 _edit_last 3 Limited growth forecast in N.C. http://www.ethiopianreview.com/business/3148 Fri, 18 Sep 2009 13:51:57 +0000 http://www.ethiopianreview.com/business/?p=3148 Charlotte Business Journal ]]> 3148 2009-09-18 06:51:57 2009-09-18 13:51:57 open open limited-growth-forecast-in-n-c publish 0 0 post _edit_lock 1253281919 _edit_last 3 Buffalo Ambassadors coming back http://www.ethiopianreview.com/business/3151 Fri, 18 Sep 2009 13:53:00 +0000 http://www.ethiopianreview.com/business/?p=3151 Business First of Buffalo ]]> 3151 2009-09-18 06:53:00 2009-09-18 13:53:00 open open buffalo-ambassadors-coming-back publish 0 0 post _edit_lock 1253281981 _edit_last 3 'Very Likely' Over http://www.ethiopianreview.com/business/3142 Fri, 18 Sep 2009 13:55:08 +0000 http://www.ethiopianreview.com/business/?p=3142 Reuters]]> 3142 2009-09-18 06:55:08 2009-09-18 13:55:08 open open very-likely-over publish 0 0 post _edit_lock 1253282109 _edit_last 3 Amherst Pepsi Center may get new name http://www.ethiopianreview.com/business/3154 Fri, 18 Sep 2009 13:55:12 +0000 http://www.ethiopianreview.com/business/?p=3154 Business First of Buffalo]]> 3154 2009-09-18 06:55:12 2009-09-18 13:55:12 open open amherst-pepsi-center-may-get-new-name publish 0 0 post _edit_lock 1253282113 _edit_last 3 India Inc mops up Rs 40,000 cr debt in Q1 http://www.ethiopianreview.com/business/3158 Fri, 18 Sep 2009 14:24:04 +0000 http://www.ethiopianreview.com/business/?p=3158 Press Trust of India]]> 3158 2009-09-18 07:24:04 2009-09-18 14:24:04 open open india-inc-mops-up-rs-40000-cr-debt-in-q1 publish 0 0 post _edit_last 3 _edit_lock 1253283846 Speed camera guru gets top Corporate Excellence award http://www.ethiopianreview.com/business/3161 Fri, 18 Sep 2009 14:25:46 +0000 http://www.ethiopianreview.com/business/?p=3161 Phoenix Business Journal ]]> 3161 2009-09-18 07:25:46 2009-09-18 14:25:46 open open speed-camera-guru-gets-top-corporate-excellence-award publish 0 0 post _edit_lock 1253283947 _edit_last 3 Specialization is key to success for ACE companies http://www.ethiopianreview.com/business/3164 Fri, 18 Sep 2009 14:27:08 +0000 http://www.ethiopianreview.com/business/?p=3164 Phoenix Business Journal]]> 3164 2009-09-18 07:27:08 2009-09-18 14:27:08 open open specialization-is-key-to-success-for-ace-companies publish 0 0 post _edit_lock 1253284030 _edit_last 3 Staley Farms Golf Club owner files bankruptcy http://www.ethiopianreview.com/business/3167 Fri, 18 Sep 2009 14:28:19 +0000 http://www.ethiopianreview.com/business/?p=3167 Kansas City Business Journal]]> 3167 2009-09-18 07:28:19 2009-09-18 14:28:19 open open staley-farms-golf-club-owner-files-bankruptcy publish 0 0 post _edit_lock 1253284100 _edit_last 3 Glenmark to raise $250 mn via various routes http://www.ethiopianreview.com/business/3170 Fri, 18 Sep 2009 14:29:26 +0000 http://www.ethiopianreview.com/business/?p=3170 Press Trust of India ]]> 3170 2009-09-18 07:29:26 2009-09-18 14:29:26 open open glenmark-to-raise-250-mn-via-various-routes publish 0 0 post _edit_lock 1253284167 _edit_last 3 Onida plans exclusive stores in India http://www.ethiopianreview.com/business/3173 Fri, 18 Sep 2009 14:30:23 +0000 http://www.ethiopianreview.com/business/?p=3173 Press Trust of India]]> 3173 2009-09-18 07:30:23 2009-09-18 14:30:23 open open onida-plans-exclusive-stores-in-india publish 0 0 post _edit_lock 1253284224 _edit_last 3 ABN Amro Bank NPAs shoot up near three times in FY'09 http://www.ethiopianreview.com/business/3176 Fri, 18 Sep 2009 14:31:15 +0000 http://www.ethiopianreview.com/business/?p=3176 Press Trust of India]]> 3176 2009-09-18 07:31:15 2009-09-18 14:31:15 open open abn-amro-bank-npas-shoot-up-near-three-times-in-fy09 publish 0 0 post _edit_lock 1253284275 _edit_last 3 CDC Global Services eyes BPO acquisitions in India http://www.ethiopianreview.com/business/3179 Fri, 18 Sep 2009 14:32:17 +0000 http://www.ethiopianreview.com/business/?p=3179 Press Trust of India]]> 3179 2009-09-18 07:32:17 2009-09-18 14:32:17 open open cdc-global-services-eyes-bpo-acquisitions-in-india publish 0 0 post _edit_lock 1253284337 _edit_last 3 Natco Pharma launches anti-swine flu drug, Natflu http://www.ethiopianreview.com/business/3182 Fri, 18 Sep 2009 14:33:38 +0000 http://www.ethiopianreview.com/business/?p=3182 Press Trust of India]]> 3182 2009-09-18 07:33:38 2009-09-18 14:33:38 open open natco-pharma-launches-anti-swine-flu-drug-natflu publish 0 0 post _edit_lock 1253284419 _edit_last 3 Types of work under NREGA may be expanded http://www.ethiopianreview.com/business/3185 Fri, 18 Sep 2009 14:34:32 +0000 http://www.ethiopianreview.com/business/?p=3185 Press Trust of India]]> 3185 2009-09-18 07:34:32 2009-09-18 14:34:32 open open types-of-work-under-nrega-may-be-expanded publish 0 0 post _edit_lock 1253284473 _edit_last 3 Engineering exports plunge 31% in August http://www.ethiopianreview.com/business/3188 Fri, 18 Sep 2009 14:35:20 +0000 http://www.ethiopianreview.com/business/?p=3188 Press Trust of India]]> 3188 2009-09-18 07:35:20 2009-09-18 14:35:20 open open engineering-exports-plunge-31-in-august publish 0 0 post _edit_lock 1253284521 _edit_last 3 Job market showing signs of recovery: Naukri.Com http://www.ethiopianreview.com/business/3191 Fri, 18 Sep 2009 14:36:41 +0000 http://www.ethiopianreview.com/business/?p=3191 Press Trust of India]]> 3191 2009-09-18 07:36:41 2009-09-18 14:36:41 open open job-market-showing-signs-of-recovery-naukri-com publish 0 0 post _edit_lock 1253284622 _edit_last 3 Pipavav Shipyard IPO subscribed 6.64 times http://www.ethiopianreview.com/business/3195 Fri, 18 Sep 2009 14:39:49 +0000 http://www.ethiopianreview.com/business/?p=3195 Press Trust of India]]> 3195 2009-09-18 07:39:49 2009-09-18 14:39:49 open open pipavav-shipyard-ipo-subscribed-6-64-times publish 0 0 post _edit_lock 1253284791 _edit_last 3 Auto, IT stocks rally past Jan 08 peaks ahead of Sensex http://www.ethiopianreview.com/business/3198 Fri, 18 Sep 2009 14:43:07 +0000 http://www.ethiopianreview.com/business/?p=3198 TOP GAINERS FROM MARCH LOWS Company Name 18-Sep-09 9-Mar-09 % Chg Tata Motors 598.95 136.69 338.18 Jaiprakash Associates 256.85 65.84 290.11 Hindalco 137.70 37.90 263.32 Tata Steel 518.05 152.30 240.15 ICICI Bank 843.35 262.95 220.73 (Data: BS Research Bureau) Metal and realty stocks are among the other top outperformers. Jaiprakash Associates has soared 290%. DLF, L&T and Reliance Infrastructure have zoomed around 200% each. Among metal companies, Hindalco has rallied 263%, while Tata Steel and Sterlite have surged over 200% each. ICICI Bank and SBI have added 100-200% each. However, depsite the recent surge, the Sensex still is down 20% compared to its all-time closing high of 20,874 on January 8, 2008. Again among the index stocks - DLF, Reliance Communications, Reliance Infrastructure, Jaiprakash Associates and Tata Steel are down 42-63%, respectively. Yet, there are always some exceptions. Hero Honda has gone against the general trend of the broader market and has in fact soared 143% from Januray' 08 levels. Maruti Suzuki has rallied 74% in the same period. I
TOP GAINERS SINCE JAN PEAK'S
Company Name 18-Sep-09 8-Jan-08 % Chg
Hero Honda 1678.50 690.10 143.23
Maruti Suzuki 1640.85 939.65 74.62
Infosys Technologies 2363.80 1662.15 42.21
TCS 583.80 495.27 17.88
Wipro 568.20 487.90 16.46
(Data: BS Research Bureau)
IT stocks too have recouped their losses. Infosys has gained 42% as compared to its 2008-high. TCS and Wipro have added 16-18% each. - by Sohini Sen | Business Standard]]> 3198 2009-09-18 07:43:07 2009-09-18 14:43:07 open open auto-it-stocks-rally-past-jan-08-peaks-ahead-of-sensex publish 0 0 post _edit_lock 1253284989 _edit_last 3 PNB looking to pick up stake in Kazak bank http://www.ethiopianreview.com/business/3202 Fri, 18 Sep 2009 14:44:11 +0000 http://www.ethiopianreview.com/business/?p=3202 Press Trust of India ]]> 3202 2009-09-18 07:44:11 2009-09-18 14:44:11 open open pnb-looking-to-pick-up-stake-in-kazak-bank publish 0 0 post _edit_lock 1253285052 _edit_last 3 HPCL to supply LPG to US-based co Plug Power for 5 yrs http://www.ethiopianreview.com/business/3205 Fri, 18 Sep 2009 14:53:05 +0000 http://www.ethiopianreview.com/business/?p=3205 Press Trust of India]]> 3205 2009-09-18 07:53:05 2009-09-18 14:53:05 open open hpcl-to-supply-lpg-to-us-based-co-plug-power-for-5-yrs publish 0 0 post _edit_lock 1253285586 _edit_last 3 WNS says no to bidders; not to pursue further discussions http://www.ethiopianreview.com/business/3208 Fri, 18 Sep 2009 14:54:01 +0000 http://www.ethiopianreview.com/business/?p=3208 Press Trust of India]]> 3208 2009-09-18 07:54:01 2009-09-18 14:54:01 open open wns-says-no-to-bidders-not-to-pursue-further-discussions publish 0 0 post _edit_lock 1253285642 _edit_last 3 Google launches new DoubleClick Ad Exchange http://www.ethiopianreview.com/business/3211 Fri, 18 Sep 2009 14:55:17 +0000 http://www.ethiopianreview.com/business/?p=3211 Press Trust of India]]> 3211 2009-09-18 07:55:17 2009-09-18 14:55:17 open open google-launches-new-doubleclick-ad-exchange publish 0 0 post _edit_lock 1253285717 _edit_last 3 Tata Motors gets Rs 78 cr loan from UK govt for electric car http://www.ethiopianreview.com/business/3214 Fri, 18 Sep 2009 14:56:27 +0000 http://www.ethiopianreview.com/business/?p=3214 Press Trust of India]]> 3214 2009-09-18 07:56:27 2009-09-18 14:56:27 open open tata-motors-gets-rs-78-cr-loan-from-uk-govt-for-electric-car publish 0 0 post _edit_lock 1253285788 _edit_last 3 BSNL to give 1.5 lakh new mobile connections this yr http://www.ethiopianreview.com/business/3217 Fri, 18 Sep 2009 16:48:22 +0000 http://www.ethiopianreview.com/business/?p=3217 Press Trust of India]]> 3217 2009-09-18 09:48:22 2009-09-18 16:48:22 open open bsnl-to-give-1-5-lakh-new-mobile-connections-this-yr publish 0 0 post _edit_lock 1253292504 _edit_last 3 Commerce Bank reissues cards after breach http://www.ethiopianreview.com/business/3220 Fri, 18 Sep 2009 16:49:28 +0000 http://www.ethiopianreview.com/business/?p=3220 St. Louis Business Journal]]> 3220 2009-09-18 09:49:28 2009-09-18 16:49:28 open open commerce-bank-reissues-cards-after-breach publish 0 0 post _edit_lock 1253292569 _edit_last 3 Gunn Allen buys Pointe Capital http://www.ethiopianreview.com/business/3223 Fri, 18 Sep 2009 16:50:35 +0000 http://www.ethiopianreview.com/business/?p=3223 Tampa Bay Business Journal]]> 3223 2009-09-18 09:50:35 2009-09-18 16:50:35 open open gunn-allen-buys-pointe-capital publish 0 0 post _edit_lock 1253292637 _edit_last 3 PBSJ to expand board, adds stock valuation http://www.ethiopianreview.com/business/3226 Fri, 18 Sep 2009 16:51:20 +0000 http://www.ethiopianreview.com/business/?p=3226 Tampa Bay Business Journal]]> 3226 2009-09-18 09:51:20 2009-09-18 16:51:20 open open pbsj-to-expand-board-adds-stock-valuation publish 0 0 post _edit_lock 1253292682 _edit_last 3 Orange County HFA bonds rated A-/F1 http://www.ethiopianreview.com/business/3229 Fri, 18 Sep 2009 16:51:59 +0000 http://www.ethiopianreview.com/business/?p=3229 Orlando Business Journal]]> 3229 2009-09-18 09:51:59 2009-09-18 16:51:59 open open orange-county-hfa-bonds-rated-a-f1 publish 0 0 post _edit_lock 1253292720 _edit_last 3 PhotoMedex to raise $4M in stock sale http://www.ethiopianreview.com/business/3232 Fri, 18 Sep 2009 16:52:53 +0000 http://www.ethiopianreview.com/business/?p=3232 Philadelphia Business Journal ]]> 3232 2009-09-18 09:52:53 2009-09-18 16:52:53 open open photomedex-to-raise-4m-in-stock-sale publish 0 0 post _edit_lock 1253292774 _edit_last 3 NewCardio closes $2.9M private placement http://www.ethiopianreview.com/business/3235 Fri, 18 Sep 2009 16:53:38 +0000 http://www.ethiopianreview.com/business/?p=3235 Silicon Valley / San Jose Business Journal ]]> 3235 2009-09-18 09:53:38 2009-09-18 16:53:38 open open newcardio-closes-2-9m-private-placement publish 0 0 post _edit_lock 1253292819 _edit_last 3 Huntington upping ante with new stock offering http://www.ethiopianreview.com/business/3238 Fri, 18 Sep 2009 16:54:25 +0000 http://www.ethiopianreview.com/business/?p=3238 Business First of Columbus]]> 3238 2009-09-18 09:54:25 2009-09-18 16:54:25 open open huntington-upping-ante-with-new-stock-offering publish 0 0 post _edit_lock 1253292866 _edit_last 3 Report: Fed may oversee bank pay practices http://www.ethiopianreview.com/business/3241 Fri, 18 Sep 2009 16:55:13 +0000 http://www.ethiopianreview.com/business/?p=3241 Atlanta Business Chronicle]]> 3241 2009-09-18 09:55:13 2009-09-18 16:55:13 open open report-fed-may-oversee-bank-pay-practices publish 0 0 post _edit_lock 1253292914 _edit_last 3 Atlantic Southern Bank under regulatory order http://www.ethiopianreview.com/business/3244 Fri, 18 Sep 2009 16:56:03 +0000 http://www.ethiopianreview.com/business/?p=3244 Atlanta Business Chronicle]]> 3244 2009-09-18 09:56:03 2009-09-18 16:56:03 open open atlantic-southern-bank-under-regulatory-order publish 0 0 post _edit_lock 1253292963 _edit_last 3 Coke still has 'it,' remains world's top brand http://www.ethiopianreview.com/business/3247 Fri, 18 Sep 2009 16:57:06 +0000 http://www.ethiopianreview.com/business/?p=3247 Atlanta Business Chronicle ]]> 3247 2009-09-18 09:57:06 2009-09-18 16:57:06 open open coke-still-has-it-remains-worlds-top-brand publish 0 0 post _edit_lock 1253293027 _edit_last 3 Wichita unemployment takes dramatic drop http://www.ethiopianreview.com/business/3250 Fri, 18 Sep 2009 16:57:57 +0000 http://www.ethiopianreview.com/business/?p=3250 Wichita Business Journal]]> 3250 2009-09-18 09:57:57 2009-09-18 16:57:57 open open wichita-unemployment-takes-dramatic-drop publish 0 0 post _edit_lock 1253293078 _edit_last 3 Basketball tourney returning to Dayton http://www.ethiopianreview.com/business/3256 Fri, 18 Sep 2009 16:59:31 +0000 http://www.ethiopianreview.com/business/?p=3256 Dayton Business Journal]]> 3256 2009-09-18 09:59:31 2009-09-18 16:59:31 open open basketball-tourney-returning-to-dayton publish 0 0 post _edit_lock 1253293171 _edit_last 3 State’s jobless rate falls to 10.8% http://www.ethiopianreview.com/business/3259 Fri, 18 Sep 2009 17:00:26 +0000 http://www.ethiopianreview.com/business/?p=3259 Business First of Columbus]]> 3259 2009-09-18 10:00:26 2009-09-18 17:00:26 open open state%e2%80%99s-jobless-rate-falls-to-10-8 publish 0 0 post _edit_lock 1253293228 _edit_last 3 Spherion: Ohio workers optimistic about economy, but not jobs http://www.ethiopianreview.com/business/3262 Fri, 18 Sep 2009 17:01:05 +0000 http://www.ethiopianreview.com/business/?p=3262 Business Courier of Cincinnati]]> 3262 2009-09-18 10:01:05 2009-09-18 17:01:05 open open spherion-ohio-workers-optimistic-about-economy-but-not-jobs publish 0 0 post _edit_lock 1253293266 _edit_last 3 Florida’s August unemployment at 10.7% http://www.ethiopianreview.com/business/3265 Fri, 18 Sep 2009 17:01:47 +0000 http://www.ethiopianreview.com/business/?p=3265 Orlando Business Journal]]> 3265 2009-09-18 10:01:47 2009-09-18 17:01:47 open open florida%e2%80%99s-august-unemployment-at-10-7 publish 0 0 post _edit_lock 1253293308 _edit_last 3 Miami-Dade County Commission approves $7.4B budget http://www.ethiopianreview.com/business/3268 Fri, 18 Sep 2009 17:03:02 +0000 http://www.ethiopianreview.com/business/?p=3268 South Florida Business Journal ]]> 3268 2009-09-18 10:03:02 2009-09-18 17:03:02 open open miami-dade-county-commission-approves-7-4b-budget publish 0 0 post _edit_lock 1253293384 _edit_last 3 Denver Hispanic Chamber honored at convention http://www.ethiopianreview.com/business/3271 Fri, 18 Sep 2009 17:03:40 +0000 http://www.ethiopianreview.com/business/?p=3271 Denver Business Journal]]> 3271 2009-09-18 10:03:40 2009-09-18 17:03:40 open open denver-hispanic-chamber-honored-at-convention publish 0 0 post _edit_lock 1253293420 _edit_last 3 Florida unemployment rate holds steady in August http://www.ethiopianreview.com/business/3274 Fri, 18 Sep 2009 17:04:18 +0000 http://www.ethiopianreview.com/business/?p=3274 South Florida Business Journal]]> 3274 2009-09-18 10:04:18 2009-09-18 17:04:18 open open florida-unemployment-rate-holds-steady-in-august publish 0 0 post _edit_lock 1253293461 _edit_last 3 North Carolina sheds more jobs, but unemployment dips http://www.ethiopianreview.com/business/3277 Fri, 18 Sep 2009 17:05:05 +0000 http://www.ethiopianreview.com/business/?p=3277 Triangle Business Journal ]]> 3277 2009-09-18 10:05:05 2009-09-18 17:05:05 open open north-carolina-sheds-more-jobs-but-unemployment-dips publish 0 0 post _edit_lock 1253293505 _edit_last 3 Austin unemployment rate at 7.2% in August http://www.ethiopianreview.com/business/3280 Fri, 18 Sep 2009 17:05:48 +0000 http://www.ethiopianreview.com/business/?p=3280 Austin Business Journal]]> 3280 2009-09-18 10:05:48 2009-09-18 17:05:48 open open austin-unemployment-rate-at-7-2-in-august publish 0 0 post _edit_lock 1253293549 _edit_last 3 State’s jobless rate inches down http://www.ethiopianreview.com/business/3283 Fri, 18 Sep 2009 17:06:42 +0000 http://www.ethiopianreview.com/business/?p=3283 The Business Journal of the Greater Triad Area]]> 3283 2009-09-18 10:06:42 2009-09-18 17:06:42 open open state%e2%80%99s-jobless-rate-inches-down publish 0 0 post _edit_lock 1253293603 _edit_last 3 N.C. unemployment dips to 10.8% http://www.ethiopianreview.com/business/3286 Fri, 18 Sep 2009 17:07:26 +0000 http://www.ethiopianreview.com/business/?p=3286 Charlotte Business Journal]]> 3286 2009-09-18 10:07:26 2009-09-18 17:07:26 open open n-c-unemployment-dips-to-10-8 publish 0 0 post _edit_lock 1253293647 _edit_last 3 U.S. House votes to end bank-based student lending http://www.ethiopianreview.com/business/3289 Fri, 18 Sep 2009 17:08:09 +0000 http://www.ethiopianreview.com/business/?p=3289 Tampa Bay Business Journal]]> 3289 2009-09-18 10:08:09 2009-09-18 17:08:09 open open u-s-house-votes-to-end-bank-based-student-lending publish 0 0 post _edit_lock 1253293689 _edit_last 3 Enrollment peaks at ECC http://www.ethiopianreview.com/business/3292 Fri, 18 Sep 2009 17:08:53 +0000 http://www.ethiopianreview.com/business/?p=3292 Business First of Buffalo ]]> 3292 2009-09-18 10:08:53 2009-09-18 17:08:53 open open enrollment-peaks-at-ecc publish 0 0 post _edit_lock 1253293734 _edit_last 3 UB signs on for climate change http://www.ethiopianreview.com/business/3295 Fri, 18 Sep 2009 17:09:39 +0000 http://www.ethiopianreview.com/business/?p=3295 Business First of Buffalo ]]> 3295 2009-09-18 10:09:39 2009-09-18 17:09:39 open open ub-signs-on-for-climate-change publish 0 0 post _edit_lock 1253293799 _edit_last 3 Rice University jumps on Futurity bandwagon http://www.ethiopianreview.com/business/3299 Fri, 18 Sep 2009 17:10:45 +0000 http://www.ethiopianreview.com/business/?p=3299 Houston Business Journal]]> 3299 2009-09-18 10:10:45 2009-09-18 17:10:45 open open rice-university-jumps-on-futurity-bandwagon publish 0 0 post _edit_lock 1253293845 _edit_last 3 Regents freeze salaries of three university presidents http://www.ethiopianreview.com/business/3302 Fri, 18 Sep 2009 17:11:37 +0000 http://www.ethiopianreview.com/business/?p=3302 Wichita Business Journal ]]> 3302 2009-09-18 10:11:37 2009-09-18 17:11:37 open open regents-freeze-salaries-of-three-university-presidents publish 0 0 post _edit_lock 1253293898 _edit_last 3 EverPower to open Pittsburgh office http://www.ethiopianreview.com/business/3305 Fri, 18 Sep 2009 17:12:25 +0000 http://www.ethiopianreview.com/business/?p=3305 Pittsburgh Business Times]]> 3305 2009-09-18 10:12:25 2009-09-18 17:12:25 open open everpower-to-open-pittsburgh-office publish 0 0 post _edit_lock 1253293946 _edit_last 3 Houston continues gas price hot streak http://www.ethiopianreview.com/business/3308 Fri, 18 Sep 2009 17:13:01 +0000 http://www.ethiopianreview.com/business/?p=3308 Houston Business Journal]]> 3308 2009-09-18 10:13:01 2009-09-18 17:13:01 open open houston-continues-gas-price-hot-streak publish 0 0 post _edit_lock 1253293981 _edit_last 3 Xcel: Colorado natural-gas bills 7% to 9% less in fall than a year ago http://www.ethiopianreview.com/business/3311 Fri, 18 Sep 2009 17:13:38 +0000 http://www.ethiopianreview.com/business/?p=3311 Denver Business Journal]]> 3311 2009-09-18 10:13:38 2009-09-18 17:13:38 open open xcel-colorado-natural-gas-bills-7-to-9-less-in-fall-than-a-year-ago publish 0 0 post _edit_lock 1253294018 _edit_last 3 Gov. signs 60 bills into law, creates state energy planning board http://www.ethiopianreview.com/business/3314 Fri, 18 Sep 2009 17:14:16 +0000 http://www.ethiopianreview.com/business/?p=3314 The Business Review (Albany)]]> 3314 2009-09-18 10:14:16 2009-09-18 17:14:16 open open gov-signs-60-bills-into-law-creates-state-energy-planning-board publish 0 0 post _edit_lock 1253294057 _edit_last 3 Houston green radio program to debut Sept. 19 http://www.ethiopianreview.com/business/3317 Fri, 18 Sep 2009 17:14:52 +0000 http://www.ethiopianreview.com/business/?p=3317 Houston Business Journal]]> 3317 2009-09-18 10:14:52 2009-09-18 17:14:52 open open houston-green-radio-program-to-debut-sept-19 publish 0 0 post _edit_lock 1253294093 _edit_last 3 Florida unemployment remains steady for August http://www.ethiopianreview.com/business/3320 Fri, 18 Sep 2009 17:15:39 +0000 http://www.ethiopianreview.com/business/?p=3320 Tampa Bay Business Journal]]> 3320 2009-09-18 10:15:39 2009-09-18 17:15:39 open open florida-unemployment-remains-steady-for-august publish 0 0 post _edit_lock 1253294139 _edit_last 3 Nicholson Construction gets $28M contract with Army Corps. http://www.ethiopianreview.com/business/3323 Fri, 18 Sep 2009 17:16:21 +0000 http://www.ethiopianreview.com/business/?p=3323 Pittsburgh Business Times]]> 3323 2009-09-18 10:16:21 2009-09-18 17:16:21 open open nicholson-construction-gets-28m-contract-with-army-corps publish 0 0 post _edit_lock 1253294182 _edit_last 3 Momentive to hire 55 http://www.ethiopianreview.com/business/3326 Fri, 18 Sep 2009 17:17:02 +0000 http://www.ethiopianreview.com/business/?p=3326 The Business Review (Albany)]]> 3326 2009-09-18 10:17:02 2009-09-18 17:17:02 open open momentive-to-hire-55 publish 0 0 post _edit_lock 1253294223 _edit_last 3 Study: Confidence in business leaders highest in North America http://www.ethiopianreview.com/business/3329 Fri, 18 Sep 2009 17:17:55 +0000 http://www.ethiopianreview.com/business/?p=3329 Houston Business Journal]]> 3329 2009-09-18 10:17:55 2009-09-18 17:17:55 open open study-confidence-in-business-leaders-highest-in-north-america publish 0 0 post _edit_lock 1253294275 _edit_last 3 Unemployment down slightly in Northeast Florida http://www.ethiopianreview.com/business/3332 Fri, 18 Sep 2009 17:18:35 +0000 http://www.ethiopianreview.com/business/?p=3332 Jacksonville Business Journal]]> 3332 2009-09-18 10:18:35 2009-09-18 17:18:35 open open unemployment-down-slightly-in-northeast-florida publish 0 0 post _edit_lock 1253294315 _edit_last 3 Balfour Beatty to buy Parsons Brinckerhoff http://www.ethiopianreview.com/business/3335 Fri, 18 Sep 2009 17:19:43 +0000 http://www.ethiopianreview.com/business/?p=3335 St. Louis Business Journal]]> 3335 2009-09-18 10:19:43 2009-09-18 17:19:43 open open balfour-beatty-to-buy-parsons-brinckerhoff publish 0 0 post _edit_lock 1253294384 _edit_last 3 Spherion: Florida workers more confident http://www.ethiopianreview.com/business/3341 Fri, 18 Sep 2009 17:21:01 +0000 http://www.ethiopianreview.com/business/?p=3341 South Florida Business Journal]]> 3341 2009-09-18 10:21:01 2009-09-18 17:21:01 open open spherion-florida-workers-more-confident publish 0 0 post _edit_lock 1253294461 _edit_last 3 Employee Confidence Index up in August http://www.ethiopianreview.com/business/3344 Fri, 18 Sep 2009 17:23:57 +0000 http://www.ethiopianreview.com/business/?p=3344 Orlando Business Journal]]> 3344 2009-09-18 10:23:57 2009-09-18 17:23:57 open open employee-confidence-index-up-in-august publish 0 0 post _edit_lock 1253294639 _edit_last 3 Joost alleges former CEO stole trade serets http://www.ethiopianreview.com/business/3347 Fri, 18 Sep 2009 17:25:03 +0000 http://www.ethiopianreview.com/business/?p=3347 Silicon Valley / San Jose Business Journal]]> 3347 2009-09-18 10:25:03 2009-09-18 17:25:03 open open joost-alleges-former-ceo-stole-trade-serets publish 0 0 post _edit_lock 1253294704 _edit_last 3 Ford Claycomo plant will benefit from $5.9B federal loan http://www.ethiopianreview.com/business/3350 Fri, 18 Sep 2009 17:25:48 +0000 http://www.ethiopianreview.com/business/?p=3350 Kansas City Business Journal]]> 3350 2009-09-18 10:25:48 2009-09-18 17:25:48 open open ford-claycomo-plant-will-benefit-from-5-9b-federal-loan publish 0 0 post _edit_lock 1253294749 _edit_last 3 Ford gets $5.9 billion loan from Department of Energy http://www.ethiopianreview.com/business/3353 Fri, 18 Sep 2009 17:27:15 +0000 http://www.ethiopianreview.com/business/?p=3353 Business First of Louisville]]> 3353 2009-09-18 10:27:15 2009-09-18 17:27:15 open open ford-gets-5-9-billion-loan-from-department-of-energy publish 0 0 post _edit_lock 1253294837 _edit_last 3 Google rolls out new display ad market http://www.ethiopianreview.com/business/3356 Fri, 18 Sep 2009 17:28:21 +0000 http://www.ethiopianreview.com/business/?p=3356 Silicon Valley / San Jose Business Journal]]> 3356 2009-09-18 10:28:21 2009-09-18 17:28:21 open open google-rolls-out-new-display-ad-market publish 0 0 post _edit_lock 1253294901 _edit_last 3 Citigroup upgrades Procter & Gamble http://www.ethiopianreview.com/business/3359 Fri, 18 Sep 2009 17:29:09 +0000 http://www.ethiopianreview.com/business/?p=3359 Business Courier of Cincinnati]]> 3359 2009-09-18 10:29:09 2009-09-18 17:29:09 open open citigroup-upgrades-procter-gamble publish 0 0 post _edit_lock 1253294950 _edit_last 3 Bank of Miami takes over apartment complex http://www.ethiopianreview.com/business/3365 Fri, 18 Sep 2009 17:30:54 +0000 http://www.ethiopianreview.com/business/?p=3365 South Florida Business Journal ]]> 3365 2009-09-18 10:30:54 2009-09-18 17:30:54 open open bank-of-miami-takes-over-apartment-complex publish 0 0 post _edit_lock 1253295055 _edit_last 3 FHA reserves feeling the squeeze http://www.ethiopianreview.com/business/3368 Fri, 18 Sep 2009 17:31:50 +0000 http://www.ethiopianreview.com/business/?p=3368 Atlanta Business Chronicle]]> 3368 2009-09-18 10:31:50 2009-09-18 17:31:50 open open fha-reserves-feeling-the-squeeze publish 0 0 post _edit_lock 1253295111 _edit_last 3 Home builders continue to gain confidence http://www.ethiopianreview.com/business/3371 Fri, 18 Sep 2009 17:32:42 +0000 http://www.ethiopianreview.com/business/?p=3371 Dallas Business Journal]]> 3371 2009-09-18 10:32:42 2009-09-18 17:32:42 open open home-builders-continue-to-gain-confidence publish 0 0 post _edit_lock 1253295163 _edit_last 3 Twitter co-founder Dorsey visits St. Louis http://www.ethiopianreview.com/business/3374 Fri, 18 Sep 2009 17:34:10 +0000 http://www.ethiopianreview.com/business/?p=3374 St. Louis Business Journal]]> 3374 2009-09-18 10:34:10 2009-09-18 17:34:10 open open twitter-co-founder-dorsey-visits-st-louis publish 0 0 post _edit_lock 1253295251 _edit_last 3 Tennis star Oudin to endorse AirTran http://www.ethiopianreview.com/business/3377 Fri, 18 Sep 2009 17:35:02 +0000 http://www.ethiopianreview.com/business/?p=3377 Atlanta Business Chronicle ]]> 3377 2009-09-18 10:35:02 2009-09-18 17:35:02 open open tennis-star-oudin-to-endorse-airtran publish 0 0 post _edit_lock 1253295302 _edit_last 3 McDonald's handing out light-rail tickets, burger coupons to Broncos fans http://www.ethiopianreview.com/business/3380 Fri, 18 Sep 2009 17:35:52 +0000 http://www.ethiopianreview.com/business/?p=3380 Denver Business Journal ]]> 3380 2009-09-18 10:35:52 2009-09-18 17:35:52 open open mcdonalds-handing-out-light-rail-tickets-burger-coupons-to-broncos-fans publish 0 0 post _edit_lock 1253295353 _edit_last 3 DIA runway repaired with stimulus funds reopens http://www.ethiopianreview.com/business/3383 Fri, 18 Sep 2009 17:36:34 +0000 http://www.ethiopianreview.com/business/?p=3383 Denver Business Journal]]> 3383 2009-09-18 10:36:34 2009-09-18 17:36:34 open open dia-runway-repaired-with-stimulus-funds-reopens publish 0 0 post _edit_lock 1253295395 _edit_last 3 Phipps to close, City Council reschedules meeting http://www.ethiopianreview.com/business/3386 Fri, 18 Sep 2009 17:37:14 +0000 http://www.ethiopianreview.com/business/?p=3386 Pittsburgh Business Times]]> 3386 2009-09-18 10:37:14 2009-09-18 17:37:14 open open phipps-to-close-city-council-reschedules-meeting publish 0 0 post _edit_lock 1253295435 _edit_last 3 City gets airport stimulus money http://www.ethiopianreview.com/business/3389 Fri, 18 Sep 2009 17:38:06 +0000 http://www.ethiopianreview.com/business/?p=3389 San Antonio Business Journal ]]> 3389 2009-09-18 10:38:06 2009-09-18 17:38:06 open open city-gets-airport-stimulus-money publish 0 0 post _edit_lock 1253295487 _edit_last 3 Play it out http://www.ethiopianreview.com/business/3396 Fri, 18 Sep 2009 17:41:07 +0000 http://www.ethiopianreview.com/business/?p=3396 Gulfnews]]> 3396 2009-09-18 10:41:07 2009-09-18 17:41:07 open open play-it-out publish 0 0 post _edit_lock 1253295669 _edit_last 3 Eid gift bonanza http://www.ethiopianreview.com/business/3399 Fri, 18 Sep 2009 17:42:30 +0000 http://www.ethiopianreview.com/business/?p=3399 Gulfnews]]> 3399 2009-09-18 10:42:30 2009-09-18 17:42:30 open open eid-gift-bonanza publish 0 0 post _edit_lock 1253295751 _edit_last 3 Siteseeing http://www.ethiopianreview.com/business/3402 Fri, 18 Sep 2009 17:43:27 +0000 http://www.ethiopianreview.com/business/?p=3402 Gulfnews ]]> 3402 2009-09-18 10:43:27 2009-09-18 17:43:27 open open siteseeing publish 0 0 post _edit_lock 1253295808 _edit_last 3 Storm clouds gather over Microsoft http://www.ethiopianreview.com/business/3405 Fri, 18 Sep 2009 17:44:30 +0000 http://www.ethiopianreview.com/business/?p=3405 Los Angeles Times-Washington Post News Service ]]> 3405 2009-09-18 10:44:30 2009-09-18 17:44:30 open open storm-clouds-gather-over-microsoft publish 0 0 post _edit_lock 1253295871 _edit_last 3 Facebook Lite available to Middle East users http://www.ethiopianreview.com/business/3408 Fri, 18 Sep 2009 17:45:36 +0000 http://www.ethiopianreview.com/business/?p=3408 Gulfnews]]> 3408 2009-09-18 10:45:36 2009-09-18 17:45:36 open open facebook-lite-available-to-middle-east-users publish 0 0 post _edit_lock 1253295937 _edit_last 3 New IPod Nano is an engineering triumph http://www.ethiopianreview.com/business/3411 Fri, 18 Sep 2009 17:46:43 +0000 http://www.ethiopianreview.com/business/?p=3411 Los Angeles Times-Washington Post News Service]]> 3411 2009-09-18 10:46:43 2009-09-18 17:46:43 open open new-ipod-nano-is-an-engineering-triumph publish 0 0 post _edit_lock 1253296018 _edit_last 3 Verizon's service for Motorola's Android-based phone http://www.ethiopianreview.com/business/3415 Fri, 18 Sep 2009 17:48:00 +0000 http://www.ethiopianreview.com/business/?p=3415 Bloomberg]]> 3415 2009-09-18 10:48:00 2009-09-18 17:48:00 open open verizons-service-for-motorolas-android-based-phone publish 0 0 post _edit_lock 1253296081 _edit_last 3 Jobs plays his role but Apple fails to surprise http://www.ethiopianreview.com/business/3418 Fri, 18 Sep 2009 17:49:07 +0000 http://www.ethiopianreview.com/business/?p=3418 Gulfnews]]> 3418 2009-09-18 10:49:07 2009-09-18 17:49:07 open open jobs-plays-his-role-but-apple-fails-to-surprise publish 0 0 post _edit_lock 1253296148 _edit_last 3 Acer and HP expected to be early winners in PC recovery http://www.ethiopianreview.com/business/3421 Fri, 18 Sep 2009 17:49:53 +0000 http://www.ethiopianreview.com/business/?p=3421 Reuters]]> 3421 2009-09-18 10:49:53 2009-09-18 17:49:53 open open acer-and-hp-expected-to-be-early-winners-in-pc-recovery publish 0 0 post _edit_lock 1253296195 _edit_last 3 New site brings classical performances to computers http://www.ethiopianreview.com/business/3424 Fri, 18 Sep 2009 17:51:00 +0000 http://www.ethiopianreview.com/business/?p=3424 Los Angeles Times-Washington Post News Service]]> 3424 2009-09-18 10:51:00 2009-09-18 17:51:00 open open new-site-brings-classical-performances-to-computers publish 0 0 post _edit_lock 1253296261 _edit_last 3 Apple investors focus more on new iPods http://www.ethiopianreview.com/business/3427 Fri, 18 Sep 2009 17:51:51 +0000 http://www.ethiopianreview.com/business/?p=3427 Bloomberg]]> 3427 2009-09-18 10:51:51 2009-09-18 17:51:51 open open apple-investors-focus-more-on-new-ipods publish 0 0 post _edit_lock 1253296312 _edit_last 3 Arabic speakers have the answers on Google http://www.ethiopianreview.com/business/3430 Fri, 18 Sep 2009 17:52:58 +0000 http://www.ethiopianreview.com/business/?p=3430 Gulfnews ]]> 3430 2009-09-18 10:52:58 2009-09-18 17:52:58 open open arabic-speakers-have-the-answers-on-google publish 0 0 post _edit_lock 1253296379 _edit_last 3 Pilgrim's Pride files reorganization plans http://www.ethiopianreview.com/business/3433 Fri, 18 Sep 2009 17:53:46 +0000 http://www.ethiopianreview.com/business/?p=3433 Dallas Business Journal]]> 3433 2009-09-18 10:53:46 2009-09-18 17:53:46 open open pilgrims-pride-files-reorganization-plans publish 0 0 post _edit_lock 1253296426 _edit_last 3 Boscov’s out of bankruptcy http://www.ethiopianreview.com/business/3436 Fri, 18 Sep 2009 17:54:40 +0000 http://www.ethiopianreview.com/business/?p=3436 Philadelphia Business Journal ]]> 3436 2009-09-18 10:54:40 2009-09-18 17:54:40 open open boscov%e2%80%99s-out-of-bankruptcy publish 0 0 post _edit_lock 1253296480 _edit_last 3 Eola Capital invests in Rockville buildings http://www.ethiopianreview.com/business/3439 Fri, 18 Sep 2009 17:55:57 +0000 http://www.ethiopianreview.com/business/?p=3439 Washington Business Journal]]> 3439 2009-09-18 10:55:57 2009-09-18 17:55:57 open open eola-capital-invests-in-rockville-buildings publish 0 0 post _edit_lock 1253296558 _edit_last 3 Phoenix Taekwondo opens martial arts studio http://www.ethiopianreview.com/business/3442 Fri, 18 Sep 2009 17:57:05 +0000 http://www.ethiopianreview.com/business/?p=3442 Washington Business Journal ]]> 3442 2009-09-18 10:57:05 2009-09-18 17:57:05 open open phoenix-taekwondo-opens-martial-arts-studio publish 0 0 post _edit_lock 1253296626 _edit_last 3 Developing West African Oil Plays http://www.ethiopianreview.com/business/3445 Fri, 18 Sep 2009 17:59:11 +0000 http://www.ethiopianreview.com/business/?p=3445 Investopedia Stock Analysis ]]> 3445 2009-09-18 10:59:11 2009-09-18 17:59:11 open open developing-west-african-oil-plays publish 0 0 post _edit_lock 1253296752 _edit_last 3 TPG Exits Springer Auction http://www.ethiopianreview.com/business/3448 Fri, 18 Sep 2009 18:00:08 +0000 http://www.ethiopianreview.com/business/?p=3448 PE Hub News]]> 3448 2009-09-18 11:00:08 2009-09-18 18:00:08 open open tpg-exits-springer-auction publish 0 0 post _edit_lock 1253296809 _edit_last 3 PAI Prepared To Cut Buyout Fund In Half http://www.ethiopianreview.com/business/3451 Fri, 18 Sep 2009 18:01:11 +0000 http://www.ethiopianreview.com/business/?p=3451 PE Hub News]]> 3451 2009-09-18 11:01:11 2009-09-18 18:01:11 open open pai-prepared-to-cut-buyout-fund-in-half publish 0 0 post _edit_lock 1253296872 _edit_last 3 Montagu Narrows Field of Survitec Bidders http://www.ethiopianreview.com/business/3454 Fri, 18 Sep 2009 18:02:04 +0000 http://www.ethiopianreview.com/business/?p=3454 PE Hub News]]> 3454 2009-09-18 11:02:04 2009-09-18 18:02:04 open open montagu-narrows-field-of-survitec-bidders publish 0 0 post _edit_lock 1253296925 _edit_last 3 Blackstone Sells Half Its Stake in Cineworld http://www.ethiopianreview.com/business/3457 Fri, 18 Sep 2009 18:02:52 +0000 http://www.ethiopianreview.com/business/?p=3457 PE Hub News]]> 3457 2009-09-18 11:02:52 2009-09-18 18:02:52 open open blackstone-sells-half-its-stake-in-cineworld publish 0 0 post _edit_lock 1253296972 _edit_last 3 TA Buying Vatterott Educational from Wellspring http://www.ethiopianreview.com/business/3460 Fri, 18 Sep 2009 18:04:02 +0000 http://www.ethiopianreview.com/business/?p=3460 PE Hub News]]> 3460 2009-09-18 11:04:02 2009-09-18 18:04:02 open open ta-buying-vatterott-educational-from-wellspring publish 0 0 post _edit_lock 1253297042 _edit_last 3 CST Industries Adds On http://www.ethiopianreview.com/business/3463 Fri, 18 Sep 2009 18:04:55 +0000 http://www.ethiopianreview.com/business/?p=3463 PE Hub News]]> 3463 2009-09-18 11:04:55 2009-09-18 18:04:55 open open cst-industries-adds-on publish 0 0 post _edit_lock 1253297095 _edit_last 3 Ruth Horowitz Joins IFC Asset Management http://www.ethiopianreview.com/business/3466 Fri, 18 Sep 2009 18:05:53 +0000 http://www.ethiopianreview.com/business/?p=3466 PE Hub News]]> 3466 2009-09-18 11:05:53 2009-09-18 18:05:53 open open ruth-horowitz-joins-ifc-asset-management publish 0 0 post _edit_lock 1253297153 _edit_last 3 Michael Rubel Joins RFE Investment Partners http://www.ethiopianreview.com/business/3469 Fri, 18 Sep 2009 18:06:53 +0000 http://www.ethiopianreview.com/business/?p=3469 PE Hub News]]> 3469 2009-09-18 11:06:53 2009-09-18 18:06:53 open open michael-rubel-joins-rfe-investment-partners publish 0 0 post _edit_lock 1253297214 _edit_last 3 Mark Andreessen Joins HP Board http://www.ethiopianreview.com/business/3472 Fri, 18 Sep 2009 18:07:47 +0000 http://www.ethiopianreview.com/business/?p=3472 PE Hub News]]> 3472 2009-09-18 11:07:47 2009-09-18 18:07:47 open open mark-andreessen-joins-hp-board publish 0 0 post _edit_lock 1253297271 _edit_last 3 IHS Buys Environmental Support Solutions http://www.ethiopianreview.com/business/3475 Fri, 18 Sep 2009 18:08:41 +0000 http://www.ethiopianreview.com/business/?p=3475 PE Hub News]]> 3475 2009-09-18 11:08:41 2009-09-18 18:08:41 open open ihs-buys-environmental-support-solutions publish 0 0 post _edit_lock 1253297321 _edit_last 3 BonitaSoft Raises $3 Million http://www.ethiopianreview.com/business/3478 Fri, 18 Sep 2009 18:09:43 +0000 http://www.ethiopianreview.com/business/?p=3478 PE Hub News]]> 3478 2009-09-18 11:09:43 2009-09-18 18:09:43 open open bonitasoft-raises-3-million publish 0 0 post _edit_lock 1253297384 _edit_last 3 RuggedCom Buys WiNetworks http://www.ethiopianreview.com/business/3481 Fri, 18 Sep 2009 18:10:30 +0000 http://www.ethiopianreview.com/business/?p=3481 PE Hub News]]> 3481 2009-09-18 11:10:30 2009-09-18 18:10:30 open open ruggedcom-buys-winetworks publish 0 0 post _edit_lock 1253297431 _edit_last 3 Former Adobe Chief Joins Voyager Capital http://www.ethiopianreview.com/business/3484 Fri, 18 Sep 2009 18:11:35 +0000 http://www.ethiopianreview.com/business/?p=3484 PE Hub News]]> 3484 2009-09-18 11:11:35 2009-09-18 18:11:35 open open former-adobe-chief-joins-voyager-capital publish 0 0 post _edit_lock 1253297496 _edit_last 3 Frank Castelluccio Joins Broadpoint Gleacher http://www.ethiopianreview.com/business/3487 Fri, 18 Sep 2009 18:12:32 +0000 http://www.ethiopianreview.com/business/?p=3487 PE Hub News]]> 3487 2009-09-18 11:12:32 2009-09-18 18:12:32 open open frank-castelluccio-joins-broadpoint-gleacher publish 0 0 post _edit_lock 1253297553 _edit_last 3 Rutland Partners Buys CeDo http://www.ethiopianreview.com/business/3490 Fri, 18 Sep 2009 18:13:49 +0000 http://www.ethiopianreview.com/business/?p=3490 PE Hub News ]]> 3490 2009-09-18 11:13:49 2009-09-18 18:13:49 open open rutland-partners-buys-cedo publish 0 0 post _edit_lock 1253297630 _edit_last 3 Bonderman: TPG Has $30 Billion To Invest http://www.ethiopianreview.com/business/3493 Fri, 18 Sep 2009 18:14:28 +0000 http://www.ethiopianreview.com/business/?p=3493 PE Hub News]]> 3493 2009-09-18 11:14:28 2009-09-18 18:14:28 open open bonderman-tpg-has-30-billion-to-invest publish 0 0 post _edit_lock 1253297668 _edit_last 3 Oaktree Open To South Korea Deals http://www.ethiopianreview.com/business/3496 Fri, 18 Sep 2009 18:15:17 +0000 http://www.ethiopianreview.com/business/?p=3496 PE Hub News]]> 3496 2009-09-18 11:15:17 2009-09-18 18:15:17 open open oaktree-open-to-south-korea-deals publish 0 0 post _edit_lock 1253297718 _edit_last 3 KKR Completes Aricent Acquisition http://www.ethiopianreview.com/business/3499 Fri, 18 Sep 2009 18:16:02 +0000 http://www.ethiopianreview.com/business/?p=3499 PE Hub News]]> 3499 2009-09-18 11:16:02 2009-09-18 18:16:02 open open kkr-completes-aricent-acquisition publish 0 0 post _edit_lock 1253297763 _edit_last 3 SAGGAS Buyout Bid Withdrawn http://www.ethiopianreview.com/business/3502 Fri, 18 Sep 2009 18:16:47 +0000 http://www.ethiopianreview.com/business/?p=3502 PE Hub News]]> 3502 2009-09-18 11:16:47 2009-09-18 18:16:47 open open saggas-buyout-bid-withdrawn publish 0 0 post _edit_lock 1253297808 _edit_last 3 Nycomed Bids on Solvay http://www.ethiopianreview.com/business/3505 Fri, 18 Sep 2009 18:17:37 +0000 http://www.ethiopianreview.com/business/?p=3505 PE Hub News ]]> 3505 2009-09-18 11:17:37 2009-09-18 18:17:37 open open nycomed-bids-on-solvay publish 0 0 post _edit_lock 1253297858 _edit_last 3 Amadeus Hires Rothschild for Possible IPO http://www.ethiopianreview.com/business/3508 Fri, 18 Sep 2009 18:18:30 +0000 http://www.ethiopianreview.com/business/?p=3508 PE Hub News]]> 3508 2009-09-18 11:18:30 2009-09-18 18:18:30 open open amadeus-hires-rothschild-for-possible-ipo publish 0 0 post _edit_lock 1253297912 _edit_last 3 Harley names Olin permanent CFO http://www.ethiopianreview.com/business/3511 Fri, 18 Sep 2009 22:19:35 +0000 http://www.ethiopianreview.com/business/?p=3511 The Business Journal of Milwaukee]]> 3511 2009-09-18 15:19:35 2009-09-18 22:19:35 open open harley-names-olin-permanent-cfo publish 0 0 post _edit_lock 1253312377 _edit_last 3 San Antonio area unemployment rate falls to 7 percent in August http://www.ethiopianreview.com/business/3514 Fri, 18 Sep 2009 22:20:37 +0000 http://www.ethiopianreview.com/business/?p=3514 San Antonio Business Journal]]> 3514 2009-09-18 15:20:37 2009-09-18 22:20:37 open open san-antonio-area-unemployment-rate-falls-to-7-percent-in-august publish 0 0 post _edit_lock 1253312438 _edit_last 3 By the Letter: FingerPaint Marketing http://www.ethiopianreview.com/business/3517 Fri, 18 Sep 2009 22:21:42 +0000 http://www.ethiopianreview.com/business/?p=3517 The Business Review (Albany) ]]> 3517 2009-09-18 15:21:42 2009-09-18 22:21:42 open open by-the-letter-fingerpaint-marketing publish 0 0 post _edit_lock 1253312503 _edit_last 3 MindComet awards $25,000 to nonprofit http://www.ethiopianreview.com/business/3520 Sat, 19 Sep 2009 00:24:18 +0000 http://www.ethiopianreview.com/business/?p=3520 Orlando Business Journal]]> 3520 2009-09-18 17:24:18 2009-09-19 00:24:18 open open mindcomet-awards-25000-to-nonprofit publish 0 0 post _edit_lock 1253319860 _edit_last 3 Phony accountant, lawyer gets prison for defrauding clients http://www.ethiopianreview.com/business/3523 Sat, 19 Sep 2009 00:25:07 +0000 http://www.ethiopianreview.com/business/?p=3523 Denver Business Journal]]> 3523 2009-09-18 17:25:07 2009-09-19 00:25:07 open open phony-accountant-lawyer-gets-prison-for-defrauding-clients publish 0 0 post _edit_lock 1253319908 _edit_last 3 Report: Feds in criminal probe of BofA’s Merrill purchase http://www.ethiopianreview.com/business/3526 Sat, 19 Sep 2009 00:27:04 +0000 http://www.ethiopianreview.com/business/?p=3526 San Francisco Business Times ]]> 3526 2009-09-18 17:27:04 2009-09-19 00:27:04 open open report-feds-in-criminal-probe-of-bofa%e2%80%99s-merrill-purchase publish 0 0 post _edit_lock 1253320025 _edit_last 3 Regulators force closure of Irwin Union http://www.ethiopianreview.com/business/3529 Sat, 19 Sep 2009 00:28:06 +0000 http://www.ethiopianreview.com/business/?p=3529 Business First of Louisville]]> 3529 2009-09-18 17:28:06 2009-09-19 00:28:06 open open regulators-force-closure-of-irwin-union publish 0 0 post _edit_lock 1253320086 _edit_last 3 Nasdaq warns Analysts International of de-listing http://www.ethiopianreview.com/business/3532 Sat, 19 Sep 2009 00:29:03 +0000 http://www.ethiopianreview.com/business/?p=3532 Minneapolis / St. Paul Business Journal]]> 3532 2009-09-18 17:29:03 2009-09-19 00:29:03 open open nasdaq-warns-analysts-international-of-de-listing publish 0 0 post _edit_lock 1253320144 _edit_last 3 First National Bank to buy First State Bank http://www.ethiopianreview.com/business/3535 Sat, 19 Sep 2009 00:30:05 +0000 http://www.ethiopianreview.com/business/?p=3535 St. Louis Business Journal]]> 3535 2009-09-18 17:30:05 2009-09-19 00:30:05 open open first-national-bank-to-buy-first-state-bank publish 0 0 post _edit_lock 1253320206 _edit_last 3 Nasdaq may delist Atlanta companies http://www.ethiopianreview.com/business/3538 Sat, 19 Sep 2009 00:45:36 +0000 http://www.ethiopianreview.com/business/?p=3538 Atlanta Business Chronicle]]> 3538 2009-09-18 17:45:36 2009-09-19 00:45:36 open open nasdaq-may-delist-atlanta-companies publish 0 0 post _edit_lock 1253321137 _edit_last 3 Stifel broker gets jail time for scam http://www.ethiopianreview.com/business/3541 Sat, 19 Sep 2009 00:46:38 +0000 http://www.ethiopianreview.com/business/?p=3541 St. Louis Business Journal]]> 3541 2009-09-18 17:46:38 2009-09-19 00:46:38 open open stifel-broker-gets-jail-time-for-scam publish 0 0 post _edit_lock 1253321199 _edit_last 3 Boston Private takes hit in Gibraltar sale http://www.ethiopianreview.com/business/3544 Sat, 19 Sep 2009 00:47:33 +0000 http://www.ethiopianreview.com/business/?p=3544 Boston Business Journal ]]> 3544 2009-09-18 17:47:33 2009-09-19 00:47:33 open open boston-private-takes-hit-in-gibraltar-sale publish 0 0 post _edit_lock 1253321254 _edit_last 3 Local bank stocks don't join Friday rally http://www.ethiopianreview.com/business/3547 Sat, 19 Sep 2009 00:48:29 +0000 http://www.ethiopianreview.com/business/?p=3547 Birmingham Business Journal ]]> 3547 2009-09-18 17:48:29 2009-09-19 00:48:29 open open local-bank-stocks-dont-join-friday-rally publish 0 0 post _edit_lock 1253321310 _edit_last 3 Frost CEO: Recovery will be slow http://www.ethiopianreview.com/business/3550 Sat, 19 Sep 2009 00:49:36 +0000 http://www.ethiopianreview.com/business/?p=3550 Houston Business Journal ]]> 3550 2009-09-18 17:49:36 2009-09-19 00:49:36 open open frost-ceo-recovery-will-be-slow publish 0 0 post _edit_lock 1253321377 _edit_last 3 Restitution plan in Strong case approved http://www.ethiopianreview.com/business/3553 Sat, 19 Sep 2009 00:50:44 +0000 http://www.ethiopianreview.com/business/?p=3553 The Business Journal of Milwaukee]]> 3553 2009-09-18 17:50:44 2009-09-19 00:50:44 open open restitution-plan-in-strong-case-approved publish 0 0 post _edit_lock 1253321445 _edit_last 3 Colorado Bankers Association, SBA come to terms on ARC loan program http://www.ethiopianreview.com/business/3556 Sat, 19 Sep 2009 00:51:46 +0000 http://www.ethiopianreview.com/business/?p=3556 Denver Business Journal ]]> 3556 2009-09-18 17:51:46 2009-09-19 00:51:46 open open colorado-bankers-association-sba-come-to-terms-on-arc-loan-program publish 0 0 post _edit_lock 1253321507 _edit_last 3 Irwin Union Bank could be shut down http://www.ethiopianreview.com/business/3559 Sat, 19 Sep 2009 00:54:41 +0000 http://www.ethiopianreview.com/business/?p=3559 Phoenix Business Journal]]> 3559 2009-09-18 17:54:41 2009-09-19 00:54:41 open open irwin-union-bank-could-be-shut-down publish 0 0 post _edit_lock 1253321683 _edit_last 3 Gordon Smith to lead national broadcasters http://www.ethiopianreview.com/business/3562 Sat, 19 Sep 2009 00:58:47 +0000 http://www.ethiopianreview.com/business/?p=3562 Portland Business Journal]]> 3562 2009-09-18 17:58:47 2009-09-19 00:58:47 open open gordon-smith-to-lead-national-broadcasters publish 0 0 post _edit_lock 1253321929 _edit_last 3 Abigail to delist stock after acquisition http://www.ethiopianreview.com/business/3565 Sat, 19 Sep 2009 01:00:10 +0000 http://www.ethiopianreview.com/business/?p=3565 Washington Business Journal ]]> 3565 2009-09-18 18:00:10 2009-09-19 01:00:10 open open abigail-to-delist-stock-after-acquisition publish 0 0 post _edit_lock 1253322011 _edit_last 3 Broker gets 2.5 years for Ponzi http://www.ethiopianreview.com/business/3568 Sat, 19 Sep 2009 01:01:10 +0000 http://www.ethiopianreview.com/business/?p=3568 St. Louis Business Journal]]> 3568 2009-09-18 18:01:10 2009-09-19 01:01:10 open open broker-gets-2-5-years-for-ponzi publish 0 0 post _edit_lock 1253322071 _edit_last 3 Sonic expects $241M from debt offering http://www.ethiopianreview.com/business/3571 Sat, 19 Sep 2009 01:01:53 +0000 http://www.ethiopianreview.com/business/?p=3571 Charlotte Business Journal]]> 3571 2009-09-18 18:01:53 2009-09-19 01:01:53 open open sonic-expects-241m-from-debt-offering publish 0 0 post _edit_lock 1253322114 _edit_last 3 NTS to develop building at U of L's ShelbyHurst park http://www.ethiopianreview.com/business/3574 Sat, 19 Sep 2009 01:03:32 +0000 http://www.ethiopianreview.com/business/?p=3574 Business First of Louisville ]]> 3574 2009-09-18 18:03:32 2009-09-19 01:03:32 open open nts-to-develop-building-at-u-of-ls-shelbyhurst-park publish 0 0 post _edit_lock 1253322214 _edit_last 3 Bill Mauer says he's buying former Hecker site http://www.ethiopianreview.com/business/3577 Sat, 19 Sep 2009 01:12:37 +0000 http://www.ethiopianreview.com/business/?p=3577 Minneapolis / St. Paul Business Journal ]]> 3577 2009-09-18 18:12:37 2009-09-19 01:12:37 open open bill-mauer-says-hes-buying-former-hecker-site publish 0 0 post _edit_lock 1253322757 _edit_last 3 Post: Allen could lose control of Charter http://www.ethiopianreview.com/business/3580 Sat, 19 Sep 2009 01:13:25 +0000 http://www.ethiopianreview.com/business/?p=3580 St. Louis Business Journal]]> 3580 2009-09-18 18:13:25 2009-09-19 01:13:25 open open post-allen-could-lose-control-of-charter publish 0 0 post _edit_lock 1253322806 _edit_last 3 Bakers kicked off Nasdaq Global Market http://www.ethiopianreview.com/business/3583 Sat, 19 Sep 2009 01:14:22 +0000 http://www.ethiopianreview.com/business/?p=3583 St. Louis Business Journal ]]> 3583 2009-09-18 18:14:22 2009-09-19 01:14:22 open open bakers-kicked-off-nasdaq-global-market publish 0 0 post _edit_lock 1253322863 _edit_last 3 EF Johnson receives notice from NASDAQ http://www.ethiopianreview.com/business/3586 Sat, 19 Sep 2009 01:22:13 +0000 http://www.ethiopianreview.com/business/?p=3586 Dallas Business Journal]]> 3586 2009-09-18 18:22:13 2009-09-19 01:22:13 open open ef-johnson-receives-notice-from-nasdaq publish 0 0 post _edit_lock 1253323334 _edit_last 3 70 Jack in the Box restaurants close, re-open http://www.ethiopianreview.com/business/3589 Sat, 19 Sep 2009 01:23:33 +0000 http://www.ethiopianreview.com/business/?p=3589 Sacramento Business Journal ]]> 3589 2009-09-18 18:23:33 2009-09-19 01:23:33 open open 70-jack-in-the-box-restaurants-close-re-open publish 0 0 post _edit_lock 1253323413 _edit_last 3 ‘East Valley Tribune’ could be put up for sale http://www.ethiopianreview.com/business/3592 Sat, 19 Sep 2009 01:24:32 +0000 http://www.ethiopianreview.com/business/?p=3592 Phoenix Business Journal]]> 3592 2009-09-18 18:24:32 2009-09-19 01:24:32 open open %e2%80%98east-valley-tribune%e2%80%99-could-be-put-up-for-sale publish 0 0 post _edit_lock 1253323479 _edit_last 3 Landmark developers’ finances detailed in bankruptcy-court filings http://www.ethiopianreview.com/business/3596 Sat, 19 Sep 2009 01:25:25 +0000 http://www.ethiopianreview.com/business/?p=3596 Denver Business Journal ]]> 3596 2009-09-18 18:25:25 2009-09-19 01:25:25 open open landmark-developers%e2%80%99-finances-detailed-in-bankruptcy-court-filings publish 0 0 post _edit_lock 1253323526 _edit_last 3 UH cancer center advisory group formed http://www.ethiopianreview.com/business/3599 Sat, 19 Sep 2009 01:26:29 +0000 http://www.ethiopianreview.com/business/?p=3599 Pacific Business News (Honolulu)]]> 3599 2009-09-18 18:26:29 2009-09-19 01:26:29 open open uh-cancer-center-advisory-group-formed publish 0 0 post _edit_last 3 _edit_lock 1253323953 Santa Clara panel backs 49ers rule change http://www.ethiopianreview.com/business/3602 Sat, 19 Sep 2009 01:34:11 +0000 http://www.ethiopianreview.com/business/?p=3602 Silicon Valley / San Jose Business Journal ]]> 3602 2009-09-18 18:34:11 2009-09-19 01:34:11 open open santa-clara-panel-backs-49ers-rule-change publish 0 0 post _edit_lock 1253324053 _edit_last 3 Kell Muñoz, Bartlett Cocke picked to design/build first A&M campus building http://www.ethiopianreview.com/business/3605 Sat, 19 Sep 2009 01:35:27 +0000 http://www.ethiopianreview.com/business/?p=3605 San Antonio Business Journal]]> 3605 2009-09-18 18:35:27 2009-09-19 01:35:27 open open kell-munoz-bartlett-cocke-picked-to-designbuild-first-am-campus-building publish 0 0 post _edit_lock 1253324128 _edit_last 3 Denver gets $10M from stimulus for 'green' public-housing redevelopment http://www.ethiopianreview.com/business/3611 Sat, 19 Sep 2009 23:52:10 +0000 http://www.ethiopianreview.com/business/?p=3611 Denver Business Journal]]> 3611 2009-09-19 16:52:10 2009-09-19 23:52:10 open open denver-gets-10m-from-stimulus-for-green-public-housing-redevelopment publish 0 0 post _edit_last 3 _edit_lock 1253404331 347 119.92.108.137 2009-10-05 07:09:42 2009-10-05 14:09:42 0 0 0 Hedge funds' ATM moves from Tokyo to Washington http://www.ethiopianreview.com/business/3614 Sat, 19 Sep 2009 23:54:15 +0000 http://www.ethiopianreview.com/business/?p=3614 Business Standard]]> 3614 2009-09-19 16:54:15 2009-09-19 23:54:15 open open hedge-funds-atm-moves-from-tokyo-to-washington publish 0 0 post _edit_last 3 _edit_lock 1253404457 Trends in agriculture http://www.ethiopianreview.com/business/3617 Sat, 19 Sep 2009 23:55:50 +0000 http://www.ethiopianreview.com/business/?p=3617 Business Standard]]> 3617 2009-09-19 16:55:50 2009-09-19 23:55:50 open open trends-in-agriculture publish 0 0 post _edit_last 3 _edit_lock 1253404550 'We are an audacious nation, and should be proud we are so' http://www.ethiopianreview.com/business/3620 Sat, 19 Sep 2009 23:59:31 +0000 http://www.ethiopianreview.com/business/?p=3620 Business Standard]]> 3620 2009-09-19 16:59:31 2009-09-19 23:59:31 open open we-are-an-audacious-nation-and-should-be-proud-we-are-so publish 0 0 post _edit_last 3 _edit_lock 1253404773 Prez appoints Indian American to key post http://www.ethiopianreview.com/business/3623 Sun, 20 Sep 2009 00:03:03 +0000 http://www.ethiopianreview.com/business/?p=3623 Press Trust of India]]> 3623 2009-09-19 17:03:03 2009-09-20 00:03:03 open open prez-appoints-indian-american-to-key-post publish 0 0 post _edit_last 3 _edit_lock 1253404985 Raamdeo Agrawal: A trillion-dollar opportunity http://www.ethiopianreview.com/business/3626 Sun, 20 Sep 2009 00:05:13 +0000 http://www.ethiopianreview.com/business/?p=3626 Business Standard]]> 3626 2009-09-19 17:05:13 2009-09-20 00:05:13 open open raamdeo-agrawal-a-trillion-dollar-opportunity publish 0 0 post _edit_last 3 _edit_lock 1253405114 Near-record wheat output expected http://www.ethiopianreview.com/business/3629 Sun, 20 Sep 2009 00:06:34 +0000 http://www.ethiopianreview.com/business/?p=3629 Bloomberg]]> 3629 2009-09-19 17:06:34 2009-09-20 00:06:34 open open near-record-wheat-output-expected publish 0 0 post _edit_last 3 _edit_lock 1253405195 Decoding debt funds http://www.ethiopianreview.com/business/3632 Sun, 20 Sep 2009 00:13:25 +0000 http://www.ethiopianreview.com/business/?p=3632 BS Reporter]]> 3632 2009-09-19 17:13:25 2009-09-20 00:13:25 open open decoding-debt-funds publish 0 0 post _edit_last 3 _edit_lock 1253405607 FinMin not opposing new FDI norms http://www.ethiopianreview.com/business/3635 Sun, 20 Sep 2009 14:15:46 +0000 http://www.ethiopianreview.com/business/?p=3635 Press Trust of India]]> 3635 2009-09-20 07:15:46 2009-09-20 14:15:46 open open finmin-not-opposing-new-fdi-norms publish 0 0 post _edit_last 3 _edit_lock 1253456148 Airlines dole out attractive schemes to woo biz travellers http://www.ethiopianreview.com/business/3638 Sun, 20 Sep 2009 14:18:26 +0000 http://www.ethiopianreview.com/business/?p=3638 Press Trust of India ]]> 3638 2009-09-20 07:18:26 2009-09-20 14:18:26 open open airlines-dole-out-attractive-schemes-to-woo-biz-travellers publish 0 0 post _edit_last 3 _edit_lock 1253456308 'Indian biz behind global cos in contingency preparedness' http://www.ethiopianreview.com/business/3641 Sun, 20 Sep 2009 14:20:36 +0000 http://www.ethiopianreview.com/business/?p=3641 Press Trust of India]]> 3641 2009-09-20 07:20:36 2009-09-20 14:20:36 open open indian-biz-behind-global-cos-in-contingency-preparedness publish 0 0 post _edit_last 3 _edit_lock 1253456437 Delta Farce: Nigeria’s Oil Mess http://www.ethiopianreview.com/business/3644 Sun, 20 Sep 2009 14:25:44 +0000 http://www.ethiopianreview.com/business/?p=3644 RoyalDutchShellplc.com]]> 3644 2009-09-20 07:25:44 2009-09-20 14:25:44 open open delta-farce-nigeria%e2%80%99s-oil-mess publish 0 0 post _edit_last 3 _edit_lock 1253456746 2358 121.241.66.250 2009-10-25 20:45:28 2009-10-26 03:45:28 0 0 0 Carlyle Buys Stake in Chinese Dairy http://www.ethiopianreview.com/business/3647 Sun, 20 Sep 2009 17:03:42 +0000 http://www.ethiopianreview.com/business/?p=3647 PE Hub News]]> 3647 2009-09-20 10:03:42 2009-09-20 17:03:42 open open carlyle-buys-stake-in-chinese-dairy publish 0 0 post _edit_last 3 _edit_lock 1253466223 Nine Indian-origin people work in White House http://www.ethiopianreview.com/business/3650 Sun, 20 Sep 2009 17:04:56 +0000 http://www.ethiopianreview.com/business/?p=3650 Press Trust of India]]> 3650 2009-09-20 10:04:56 2009-09-20 17:04:56 open open nine-indian-origin-people-work-in-white-house publish 0 0 post _edit_last 3 _edit_lock 1253466297 'Harishchandrachi factory' India's entry for Oscars http://www.ethiopianreview.com/business/3653 Sun, 20 Sep 2009 17:06:12 +0000 http://www.ethiopianreview.com/business/?p=3653 Press Trust of India]]> 3653 2009-09-20 10:06:12 2009-09-20 17:06:12 open open harishchandrachi-factory-indias-entry-for-oscars publish 0 0 post _edit_last 3 _edit_lock 1253466373 New York regulator suggests limiting Moody's as rater http://www.ethiopianreview.com/business/3656 Mon, 21 Sep 2009 03:27:16 +0000 http://www.ethiopianreview.com/business/?p=3656 Bloomberg]]> 3656 2009-09-20 20:27:16 2009-09-21 03:27:16 open open new-york-regulator-suggests-limiting-moodys-as-rater publish 0 0 post _edit_last 3 _edit_lock 1253503638 Pharma market in global top 10 by 2015: Report http://www.ethiopianreview.com/business/3659 Mon, 21 Sep 2009 03:29:16 +0000 http://www.ethiopianreview.com/business/?p=3659 BS Reporter]]> 3659 2009-09-20 20:29:16 2009-09-21 03:29:16 open open pharma-market-in-global-top-10-by-2015-report publish 0 0 post _edit_last 3 _edit_lock 1253503757 Pharma industry steps up recruitment 5 times http://www.ethiopianreview.com/business/3662 Mon, 21 Sep 2009 03:30:22 +0000 http://www.ethiopianreview.com/business/?p=3662 Business Standard]]> 3662 2009-09-20 20:30:22 2009-09-21 03:30:22 open open pharma-industry-steps-up-recruitment-5-times publish 0 0 post _edit_last 3 _edit_lock 1253503823 Nissan adds 'beautiful' noise to make silent electric cars safe http://www.ethiopianreview.com/business/3665 Mon, 21 Sep 2009 03:32:07 +0000 http://www.ethiopianreview.com/business/?p=3665 Bloomberg]]> 3665 2009-09-20 20:32:07 2009-09-21 03:32:07 open open nissan-adds-beautiful-noise-to-make-silent-electric-cars-safe publish 0 0 post _edit_last 3 _edit_lock 1253503927 Regional companies bullish on M&A deals http://www.ethiopianreview.com/business/3668 Mon, 21 Sep 2009 03:33:34 +0000 http://www.ethiopianreview.com/business/?p=3668 Business Standard]]> 3668 2009-09-20 20:33:34 2009-09-21 03:33:34 open open regional-companies-bullish-on-ma-deals publish 0 0 post _edit_last 3 _edit_lock 1253504015 200 213.178.224.165 2009-10-02 15:32:11 2009-10-02 22:32:11 0 0 0 Upgraded airports to make Punjab key biz and tourist hub http://www.ethiopianreview.com/business/3671 Mon, 21 Sep 2009 03:34:48 +0000 http://www.ethiopianreview.com/business/?p=3671 Press Trust of India]]> 3671 2009-09-20 20:34:48 2009-09-21 03:34:48 open open upgraded-airports-to-make-punjab-key-biz-and-tourist-hub publish 0 0 post _edit_last 3 _edit_lock 1253504089 Euro Multivision plans to make polysilicon http://www.ethiopianreview.com/business/3674 Mon, 21 Sep 2009 03:38:52 +0000 http://www.ethiopianreview.com/business/?p=3674 BS Reporter]]> 3674 2009-09-20 20:38:52 2009-09-21 03:38:52 open open euro-multivision-plans-to-make-polysilicon publish 0 0 post _edit_last 3 _edit_lock 1253504334 Doha talks stalled in Geneva despite Delhi meeting http://www.ethiopianreview.com/business/3677 Mon, 21 Sep 2009 03:40:07 +0000 http://www.ethiopianreview.com/business/?p=3677 Business Standard]]> 3677 2009-09-20 20:40:07 2009-09-21 03:40:07 open open doha-talks-stalled-in-geneva-despite-delhi-meeting publish 0 0 post _edit_last 3 _edit_lock 1253504408 Bennet to Hispanic Chamber: Opportunity 'a precious gift' http://www.ethiopianreview.com/business/3680 Mon, 21 Sep 2009 03:44:39 +0000 http://www.ethiopianreview.com/business/?p=3680 Denver Business Journal]]> 3680 2009-09-20 20:44:39 2009-09-21 03:44:39 open open bennet-to-hispanic-chamber-opportunity-a-precious-gift publish 0 0 post _edit_last 3 _edit_lock 1253504680 Carpenter's union media campaign takes aim at Phoenix construction firm http://www.ethiopianreview.com/business/3683 Mon, 21 Sep 2009 03:45:34 +0000 http://www.ethiopianreview.com/business/?p=3683 Phoenix Business Journal ]]> 3683 2009-09-20 20:45:34 2009-09-21 03:45:34 open open carpenters-union-media-campaign-takes-aim-at-phoenix-construction-firm publish 0 0 post _edit_last 3 _edit_lock 1253504734 Trading time triads http://www.ethiopianreview.com/business/3686 Mon, 21 Sep 2009 03:48:00 +0000 http://www.ethiopianreview.com/business/?p=3686 FAIRLY VALUED in Rs crore Net
sales

Net
profit

 TTM  PE (x)
 FY10E  FY11E  CMP
 (Rs) Shree Renuka Sugar 1,927.0 107.0 59.20 8.30 9.80 201 Bajaj Hindusthan 1,632.0 -2.0  NA 7.60 10.20 181 Balrampur Chini 1,733.0 198.0 16.20 9.30 9.60 125 Dhampur Sugar 881.0 62.0 8.30 4.90  NA 97 EID Parry 757.0 140.0 19.60 50.60 35.40 319 Net sales & Net profit is based on trailing 12 mths       E: Estimates  Source: Capitaline, analyst estimates The idea is not to shoot till all the ducks are in place. This aspect of time triads takes care of the trending part. The some triad structure can also assist in anticipatory model and in subsequent selection and classification of a trade. The major drawback is that time triads could be hard test of patience for someone who is used to aggressive trading and is not used to vacationing. Traders reading this should know that I am divulging an entry trick not an exit strategy. Getting out has always been more important than getting in and not to mention risk management and leverage. Even the best trading system played with disproportionate leverage, poor risk management and large exposure can be suicidal. The Kelly bet, is a formula used to determine the optimal size of a series of bets. In most gambling scenarios, and some investing scenarios under some simplifying assumptions, the Kelly strategy will do better than any essentially different strategy in the long run. It was described by J. L. Kelly, Jr, in a 1956 issue of the Bell System Technical Journal. In recent years, Kelly has become a part of mainstream investment theory and the claim has been made that well-known successful investors including Warren Buffett and Bill Gross use Kelly’s methods. Simply put, the optimal fraction of a bet depends on the probability of win and the ratio of average win to average loss. Technical analysis guru, John Magee said, “We can never hope to know why the market behaves as it does, we can only aspire to understand how. History obviously has repetitive tendencies and that’s good enough.” Magee, as we know was talking about time cycles. Just like a human, smart or dumbness of a trading system is linked with time. An exit and entry signal in time is what matters, the rest is noise. - by Mukul Pal | Business Standard]]> 3686 2009-09-20 20:48:00 2009-09-21 03:48:00 open open trading-time-triads publish 0 0 post _edit_last 3 _edit_lock 1253504882 Sweet sugar? http://www.ethiopianreview.com/business/3689 Mon, 21 Sep 2009 03:49:41 +0000 http://www.ethiopianreview.com/business/?p=3689 Business Standard]]> 3689 2009-09-20 20:49:41 2009-09-21 03:49:41 open open sweet-sugar publish 0 0 post _edit_last 3 _edit_lock 1253504982 Crude oil weakens on strong dollar http://www.ethiopianreview.com/business/3692 Mon, 21 Sep 2009 03:50:38 +0000 http://www.ethiopianreview.com/business/?p=3692 Business Standard]]> 3692 2009-09-20 20:50:38 2009-09-21 03:50:38 open open crude-oil-weakens-on-strong-dollar publish 0 0 post _edit_last 3 _edit_lock 1253505039 'Survival of new and smaller players is under threat' http://www.ethiopianreview.com/business/3695 Mon, 21 Sep 2009 03:52:59 +0000 http://www.ethiopianreview.com/business/?p=3695 Business Standard]]> 3695 2009-09-20 20:52:59 2009-09-21 03:52:59 open open survival-of-new-and-smaller-players-is-under-threat publish 0 0 post _edit_last 3 _edit_lock 1253505181 Deflation party's end game http://www.ethiopianreview.com/business/3698 Mon, 21 Sep 2009 03:54:10 +0000 http://www.ethiopianreview.com/business/?p=3698 Business Standard]]> 3698 2009-09-20 20:54:10 2009-09-21 03:54:10 open open deflation-partys-end-game publish 0 0 post _edit_last 3 _edit_lock 1253505251 Stomp on comp http://www.ethiopianreview.com/business/3701 Mon, 21 Sep 2009 03:55:18 +0000 http://www.ethiopianreview.com/business/?p=3701 Business Standard]]> 3701 2009-09-20 20:55:18 2009-09-21 03:55:18 open open stomp-on-comp publish 0 0 post _edit_last 3 _edit_lock 1253505319 Subir Gokarn: The search for global confluence http://www.ethiopianreview.com/business/3704 Mon, 21 Sep 2009 03:57:44 +0000 http://www.ethiopianreview.com/business/?p=3704 Business Standard]]> 3704 2009-09-20 20:57:44 2009-09-21 03:57:44 open open subir-gokarn-the-search-for-global-confluence publish 0 0 post _edit_last 3 _edit_lock 1253505466 Not quiet on the border http://www.ethiopianreview.com/business/3707 Mon, 21 Sep 2009 03:58:50 +0000 http://www.ethiopianreview.com/business/?p=3707 Business Standard]]> 3707 2009-09-20 20:58:50 2009-09-21 03:58:50 open open not-quiet-on-the-border publish 0 0 post _edit_last 3 _edit_lock 1253505531 Alarm bells ring over British Columbia treaty override http://www.ethiopianreview.com/business/3710 Mon, 21 Sep 2009 04:00:07 +0000 http://www.ethiopianreview.com/business/?p=3710 Business Standard]]> 3710 2009-09-20 21:00:07 2009-09-21 04:00:07 open open alarm-bells-ring-over-british-columbia-treaty-override publish 0 0 post _edit_last 3 _edit_lock 1253505608 Measurement in Financial Accounting http://www.ethiopianreview.com/business/3713 Mon, 21 Sep 2009 04:01:10 +0000 http://www.ethiopianreview.com/business/?p=3713 Business Standard]]> 3713 2009-09-20 21:01:10 2009-09-21 04:01:10 open open measurement-in-financial-accounting publish 0 0 post _edit_last 3 _edit_lock 1253505671 Financial city likely to come up in Chennai http://www.ethiopianreview.com/business/3716 Mon, 21 Sep 2009 04:02:18 +0000 http://www.ethiopianreview.com/business/?p=3716 BS Reporter]]> 3716 2009-09-20 21:02:18 2009-09-21 04:02:18 open open financial-city-likely-to-come-up-in-chennai publish 0 0 post _edit_last 3 _edit_lock 1253505738 India to push for more space in IMF, WB at G-20 http://www.ethiopianreview.com/business/3719 Mon, 21 Sep 2009 04:03:25 +0000 http://www.ethiopianreview.com/business/?p=3719 Press Trust of India]]> 3719 2009-09-20 21:03:25 2009-09-21 04:03:25 open open india-to-push-for-more-space-in-imf-wb-at-g-20 publish 0 0 post _edit_last 3 _edit_lock 1253505806 Big chunk of US visas go to Indians http://www.ethiopianreview.com/business/3722 Mon, 21 Sep 2009 04:04:25 +0000 http://www.ethiopianreview.com/business/?p=3722 BS Reporter]]> 3722 2009-09-20 21:04:25 2009-09-21 04:04:25 open open big-chunk-of-us-visas-go-to-indians publish 0 0 post _edit_last 3 _edit_lock 1253505866 'India can sustain 6-8% growth rates up to 2025' http://www.ethiopianreview.com/business/3725 Mon, 21 Sep 2009 04:06:22 +0000 http://www.ethiopianreview.com/business/?p=3725 Business Standard]]> 3725 2009-09-20 21:06:22 2009-09-21 04:06:22 open open india-can-sustain-6-8-growth-rates-up-to-2025 publish 0 0 post _edit_last 3 _edit_lock 1253505983 Talks may trigger larger M&A policy debate http://www.ethiopianreview.com/business/3728 Mon, 21 Sep 2009 04:07:49 +0000 http://www.ethiopianreview.com/business/?p=3728 Business Standard]]> 3728 2009-09-20 21:07:49 2009-09-21 04:07:49 open open talks-may-trigger-larger-ma-policy-debate publish 0 0 post _edit_last 3 _edit_lock 1253506071 The 'L' word http://www.ethiopianreview.com/business/3731 Mon, 21 Sep 2009 04:08:54 +0000 http://www.ethiopianreview.com/business/?p=3731 Business Standard]]> 3731 2009-09-20 21:08:54 2009-09-21 04:08:54 open open the-l-word publish 0 0 post _edit_last 3 _edit_lock 1253506135 Renewable energy devices to be installed at important sites http://www.ethiopianreview.com/business/3734 Mon, 21 Sep 2009 04:10:39 +0000 http://www.ethiopianreview.com/business/?p=3734 Press Trust of India]]> 3734 2009-09-20 21:10:39 2009-09-21 04:10:39 open open renewable-energy-devices-to-be-installed-at-important-sites publish 0 0 post _edit_last 3 _edit_lock 1253506240 Black Widow surrender to give peace a chance in Assam http://www.ethiopianreview.com/business/3737 Mon, 21 Sep 2009 04:12:02 +0000 http://www.ethiopianreview.com/business/?p=3737 Business Standard]]> 3737 2009-09-20 21:12:02 2009-09-21 04:12:02 open open black-widow-surrender-to-give-peace-a-chance-in-assam publish 0 0 post _edit_last 3 _edit_lock 1253506323 Five bodies of Cobra jawans found http://www.ethiopianreview.com/business/3740 Mon, 21 Sep 2009 04:13:28 +0000 http://www.ethiopianreview.com/business/?p=3740 BS Reporter]]> 3740 2009-09-20 21:13:28 2009-09-21 04:13:28 open open five-bodies-of-cobra-jawans-found publish 0 0 post _edit_last 3 _edit_lock 1253506409 'We are careful in dealing with China, but there is no sense of appeasement or fear' http://www.ethiopianreview.com/business/3743 Mon, 21 Sep 2009 04:15:54 +0000 http://www.ethiopianreview.com/business/?p=3743 Business Standard]]> 3743 2009-09-20 21:15:54 2009-09-21 04:15:54 open open we-are-careful-in-dealing-with-china-but-there-is-no-sense-of-appeasement-or-fear publish 0 0 post _edit_last 3 _edit_lock 1253506556 Lebanese currency reserves hit record as money floods in http://www.ethiopianreview.com/business/3746 Mon, 21 Sep 2009 04:17:49 +0000 http://www.ethiopianreview.com/business/?p=3746 Bloomberg]]> 3746 2009-09-20 21:17:49 2009-09-21 04:17:49 open open lebanese-currency-reserves-hit-record-as-money-floods-in publish 0 0 post _edit_last 3 _edit_lock 1253506670 Algosaibi 'sues Saad for alleged fraud' http://www.ethiopianreview.com/business/3749 Mon, 21 Sep 2009 04:18:49 +0000 http://www.ethiopianreview.com/business/?p=3749 Reuters]]> 3749 2009-09-20 21:18:49 2009-09-21 04:18:49 open open algosaibi-sues-saad-for-alleged-fraud publish 0 0 post _edit_last 3 _edit_lock 1253506730 Fairmont to run new luxury hotel in Abu Dhabi http://www.ethiopianreview.com/business/3752 Mon, 21 Sep 2009 04:20:00 +0000 http://www.ethiopianreview.com/business/?p=3752 Gulfnews]]> 3752 2009-09-20 21:20:00 2009-09-21 04:20:00 open open fairmont-to-run-new-luxury-hotel-in-abu-dhabi publish 0 0 post _edit_last 3 _edit_lock 1253506801 Recovery initiatives in Gulf http://www.ethiopianreview.com/business/3756 Mon, 21 Sep 2009 04:21:31 +0000 http://www.ethiopianreview.com/business/?p=3756 Gulfnews]]> 3756 2009-09-20 21:21:31 2009-09-21 04:21:31 open open recovery-initiatives-in-gulf publish 0 0 post _edit_last 3 _edit_lock 1253506892 Japan to push support for green technologies http://www.ethiopianreview.com/business/3759 Mon, 21 Sep 2009 04:23:08 +0000 http://www.ethiopianreview.com/business/?p=3759 Reuters]]> 3759 2009-09-20 21:23:08 2009-09-21 04:23:08 open open japan-to-push-support-for-green-technologies publish 0 0 post _edit_last 3 _edit_lock 1253506990 Milk strikes, shortages hit Europe http://www.ethiopianreview.com/business/3762 Mon, 21 Sep 2009 04:24:11 +0000 http://www.ethiopianreview.com/business/?p=3762 Guardian News & Media Limited ]]> 3762 2009-09-20 21:24:11 2009-09-21 04:24:11 open open milk-strikes-shortages-hit-europe publish 0 0 post _edit_last 3 _edit_lock 1253507052 British firm eyes more investment in Indian ports as traffic exceeds capacity http://www.ethiopianreview.com/business/3765 Mon, 21 Sep 2009 04:30:32 +0000 http://www.ethiopianreview.com/business/?p=3765 Bloomberg]]> 3765 2009-09-20 21:30:32 2009-09-21 04:30:32 open open british-firm-eyes-more-investment-in-indian-ports-as-traffic-exceeds-capacity publish 0 0 post _edit_last 3 _edit_lock 1253507433 Merger to create Louisville area’s largest accounting firm http://www.ethiopianreview.com/business/3888 Tue, 22 Sep 2009 09:46:02 +0000 http://zikkir.com/business/?p=5285 To create what principals describe as a regional powerhouse, two Louisville accounting firms are merging into what promises to be the city’s largest accounting firm, ranked by number of accountants.

Principals with Chilton & Medley LLP and Mountjoy & Bressler LLP have signed a memorandum of agreement to merge the two firms, with the deal scheduled to close Nov. 1.

The new firm — Mountjoy Chilton Medley LLP — would have a total of 88 accountants in Louisville, 22 total in four other Kentucky markets, and about 214 total employees.

The managing partners of their respective firms — Diane Medley and Mike Mountjoy — will become co-managing partners of the new firm.

- bizjournals.com

]]> 3888 2009-09-22 02:46:02 2009-09-22 09:46:02 open open merger-to-create-louisville-area%e2%80%99s-largest-accounting-firm publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5285#comments wfw:commentRSS http://zikkir.com/business/5285/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5285 syndication_item_hash e4ed50398aadab142e400dbc6e104498 Brown Smith Wallace builds niche services http://www.ethiopianreview.com/business/3887 Tue, 22 Sep 2009 09:46:41 +0000 http://zikkir.com/business/?p=5287 Five months ago, Marty Doerr joined Brown Smith Wallace as member-in-charge of tax services and said his mission was to expand the accounting firm’s tax services.

So far, mission accomplished. The St. Louis-based firm recently added a four-person property tax group formerly of PricewaterhouseCoopers.

Jenna Kerwood joined Brown Smith Wallace on Sept. 1 as principal and head of the new group. She will be joined by Managers Debby Hood, Tracy Adams and Cindy Rust.

“The firm was doing property tax work but it wasn’t organized into a group,” Doerr said. “I saw the addition of Jenna and the group as a service that we should have here.”

- bizjournals.com

]]> 3887 2009-09-22 02:46:41 2009-09-22 09:46:41 open open brown-smith-wallace-builds-niche-services publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5287#comments wfw:commentRSS http://zikkir.com/business/5287/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5287 syndication_item_hash 602c4dbdabf08fb1a844fc110e06fdb9 New accounting rule makes questionable items liabilities http://www.ethiopianreview.com/business/3886 Tue, 22 Sep 2009 09:47:19 +0000 http://zikkir.com/business/?p=5289 Privately owned businesses face a new accounting rule requiring that questionable items listed on tax returns immediately be recorded as liabilities.

The rule, known as FIN 48, was handed down by the Financial Accounting Standards Board. Auditors won’t sign a private company’s annual report without compliance, a potential roadblock to getting financing.

Public companies have been subject to the rule since 2006. After several delays, the Financial Accounting Standards Board released guidance on Sept. 3 for adding the rule to private companies, making another delay highly unlikely.

A study by Segal and Associates found that of 601 public companies with at least $2 billion in revenue, 431 had to adjust their tax reserves by a total of $14.9 billion after adopting FIN 48. Local accountants said they expect an equally large effect on private companies.

- bizjournals.com

]]> 3886 2009-09-22 02:47:19 2009-09-22 09:47:19 open open new-accounting-rule-makes-questionable-items-liabilities publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5289#comments wfw:commentRSS http://zikkir.com/business/5289/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5289 syndication_item_hash 2221e190f84a27bd4c345145ae41dbce Mainland-Hawaii salary gap grows http://www.ethiopianreview.com/business/3885 Tue, 22 Sep 2009 09:48:25 +0000 http://zikkir.com/business/?p=5291 After obtaining three academic degrees, working in two careers and spending 20 years in Washington, D.C., Chicago, Philadelphia and New York City, Kaneohe native Brian Ancheta moved back to Hawaii last spring.

In Chicago, he routinely pored over Hawaii job advertisements to see if he could find an equally high-paying information technology job back home.

“I had this obsession with getting back to Hawaii and I thought, ‘Hey, science and engineering? Jobs are going to be abundant,’ but it never really came to fruition,” he said. “The pay differential would have been a 75 percent pay cut.”

It’s a fact of business that white-collar jobs in Hawaii pay less than the Mainland, particularly in management, law, computer sciences and sales.

- bizjournals.com

]]> 3885 2009-09-22 02:48:25 2009-09-22 09:48:25 open open mainland-hawaii-salary-gap-grows publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5291#comments wfw:commentRSS http://zikkir.com/business/5291/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5291 syndication_item_hash 6a577527839cfdb4ccf3084c657773a2 Time Warner still hiring for new telemarketing center http://www.ethiopianreview.com/business/3884 Tue, 22 Sep 2009 09:49:20 +0000 http://zikkir.com/business/?p=5293 The high unemployment rate and tight job market has provided Time Warner Cable with highly-qualified employees for its new telemarketing center that opened in downtown Milwaukee last month.

The company started hiring in June for the 125 positions and still has about 25 to fill. Time Warner has sent representatives to job fairs — including those targeting minority applicants — and advertised online.

“We’re still looking for employees — we want them,” said Bev Greenberg, vice president of communications for Time Warner Cable Wisconsin.

Greenberg declined to disclose the wages for the telemarketing positions other than to say they are competitive. About half the positions are full time.

- bizjournals.com

]]> 3884 2009-09-22 02:49:20 2009-09-22 09:49:20 open open time-warner-still-hiring-for-new-telemarketing-center publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5293#comments wfw:commentRSS http://zikkir.com/business/5293/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5293 syndication_item_hash 44c85ed9704a3643f1509f0bd8112435 Nationwide caught up in Alabama imbroglio over pension plan fees http://www.ethiopianreview.com/business/3883 Tue, 22 Sep 2009 09:50:02 +0000 http://zikkir.com/business/?p=5295 A scandal in Alabama involving allegations of kickbacks, secret agreements, conflicts of interest and cover-ups has ensnared Nationwide Mutual Insurance Co., resulting in a decision to dismiss the company as a retirement plan provider for employees of the state.

The brouhaha has been unfolding for nearly two years but recently grew in scope. Alabama officials have accused the main state employees union of inappropriately demanding millions of dollars in payments and political contributions from Columbus-based Nationwide in exchange for the company’s selection as provider of the defined contribution retirement plan for the union’s members.

The board of the Alabama State Personnel Department, which oversees pension plan decisions made by the Alabama State Employees Association, sought details on the arrangement as part of an investigation into allegedly undisclosed and inappropriate dealings between the union and Nationwide, said Alice Ann Byrne, the department’s general counsel. She said Nationwide didn’t answer questions or attend any meetings. “To say we were rebuffed was an understatement,” she said.

The State Personnel Department reacted in June by voting to give Nationwide six months’ notice that it would be terminating the company’s contract to offer state employees the 457 retirement plan, the equivalent to 401(k) plans. Nationwide had managed the plan since 1976.

- bizjournals.com

]]> 3883 2009-09-22 02:50:02 2009-09-22 09:50:02 open open nationwide-caught-up-in-alabama-imbroglio-over-pension-plan-fees publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5295#comments wfw:commentRSS http://zikkir.com/business/5295/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5295 syndication_item_hash 3a1763f1fc9f61aa37bde1e90e1ae473 Fired broker Gil Kuta takes on RBC Wealth Management http://www.ethiopianreview.com/business/3882 Tue, 22 Sep 2009 09:51:05 +0000 http://zikkir.com/business/?p=5297 Gil Kuta, one of the Baltimore area’s more high-profile stockbrokers, was dumped by his former employer last month and now he is fighting back.

Kuta, a former senior vice president at RBC Wealth Management’s Hunt Valley office, has hit the firm with a complaint to a securities industry regulatory group after his employer let him go.

The host of the “On the Money” show on Baltimore radio station 105.7 FM says that after he was shown the door by two RBC executives, the firm then sent a letter to all of Kuta’s clients telling them he no longer worked at the firm and notifying them another RBC financial adviser would contact them about their accounts.

“My concern is for my clients,” Kuta said. “They’re very upset over this. The firm made it seem like I abandoned them. It was beyond my control. They escorted me from the building.”

- bizjournals.com

]]> 3882 2009-09-22 02:51:05 2009-09-22 09:51:05 open open fired-broker-gil-kuta-takes-on-rbc-wealth-management publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5297#comments wfw:commentRSS http://zikkir.com/business/5297/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5297 syndication_item_hash 11369a498872ae6dd91d577ae9030155 Backers say sick-leave plan should go hand in hand with health-care reform http://www.ethiopianreview.com/business/3881 Tue, 22 Sep 2009 09:51:55 +0000 http://zikkir.com/business/?p=5299 National health-care reform is at center stage in Congress, but a bill that would mandate paid sick leave for workers is waiting in the wings.

Pro-worker groups, including a labor union with a high profile in Ohio, are hoping that paid sick-leave bills in the U.S. House and Senate gain momentum once the health-care battle ends. They are hoping for a “two-fer” – universal health care and mandatory paid sick leave – from the Democrat-controlled Congress and White House.

“They do go hand in hand,” said Mark McCullough, spokesman for the Service Employees International Union, which headed an effort to place a paid sick leave proposal on the Ohio ballot last November. “Having health care is great, but what’s the point if you don’t have time off to access it.”

Paid sick leave is clearly a key part of organized labor’s agenda and will have plenty of support from union-friendly Democrats in Congress, said Brad Close, vice president of federal public policy for the National Federation of Independent Business, a trade group representing small businesses.

- bizjournals.com

]]> 3881 2009-09-22 02:51:55 2009-09-22 09:51:55 open open backers-say-sick-leave-plan-should-go-hand-in-hand-with-health-care-reform publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5299#comments wfw:commentRSS http://zikkir.com/business/5299/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5299 syndication_item_hash 3967191d06e55a971929dea16f1d7062 Rethinking benefits http://www.ethiopianreview.com/business/3880 Tue, 22 Sep 2009 09:53:07 +0000 http://zikkir.com/business/?p=5301 When the global recession hit last year, employee benefits took a hit also.

Companies laid off workers, froze hiring and annual salary increases, and suspended bonuses, 401(k) contributions and travel expenses.

Fewer organizations are providing housing and relocation expenses, business travel, and other common benefits. Sixty percent of U.S. human resources workers have said the recession prompted their businesses to scale back or hold steady on benefit offerings, according to the Society for Human Resource Management.

Such changes eliminate tools that some companies use to motivate employees, forcing companies to consider creative measures to get the job done without spending more money.

- bizjournals.com

]]> 3880 2009-09-22 02:53:07 2009-09-22 09:53:07 open open rethinking-benefits publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5301#comments wfw:commentRSS http://zikkir.com/business/5301/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5301 syndication_item_hash 5a471e2284852bad6edbd465193ad178 Employment-related bills await governor’s review http://www.ethiopianreview.com/business/3879 Tue, 22 Sep 2009 09:53:55 +0000 http://zikkir.com/business/?p=5303 Legislation to regulate excessive indoor heat in the workplace and to establish new limits on employer use of an electronic program to weed out illegal workers await action by Gov. Arnold Schwarzenegger.

But the two most controversial labor bills of the year are already dead, for now.

Guaranteed paid sick days for many California workers died in committee in May. An attempt to allow farm workers to organize by card check rather than secret ballot election was vetoed Sept. 2 (see related story, page 1).

There was little debate about other efforts to expand job protection for workers or ease regulatory burdens on businesses in a year dominated by a $24 billion budget deficit.

- bizjournals.com

]]> 3879 2009-09-22 02:53:55 2009-09-22 09:53:55 open open employment-related-bills-await-governor%e2%80%99s-review publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5303#comments wfw:commentRSS http://zikkir.com/business/5303/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5303 syndication_item_hash 7c2cd5ed6645d7e51b8e0b975f670ada Job market for Triad bankers holding its own http://www.ethiopianreview.com/business/3878 Tue, 22 Sep 2009 09:54:39 +0000 http://zikkir.com/business/?p=5305 News last week of the addition of 150 banking jobs in the Triad at Wachovia is welcome in a troubled economy, and another sign the local job market for bankers is holding its own already despite the industry’s problems.

Some banks have beefed up their staffs to help deal with the increasing amounts of bad loans on their books. Others are hiring because they see deals to be done in the market and are willing to work for the business.

“Any well-managed and successful bank, if it’s going to be able to take advantage of the market dislocation going on, is going to be forced to increase staffing just to keep providing the level of service it wants,” said Bob Braswell, CEO of Greensboro-based Carolina Bank, which has had the highest percentage job growth among the Triad community banks over the past two years. “You can only stretch your staff so far.”

Wachovia officials were in Winston-Salem last week to announce that they planned to add about 150 jobs during the next two years in their trust division and area branches as the integration with merger partner Wells Fargo proceeds. Wachovia employs about 3,400 people in the Triad now.

- bizjournals.com

]]> 3878 2009-09-22 02:54:39 2009-09-22 09:54:39 open open job-market-for-triad-bankers-holding-its-own publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5305#comments wfw:commentRSS http://zikkir.com/business/5305/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5305 syndication_item_hash b53b06ed938d350e4b37a27663f56079 Labor, business square off on organizing bill http://www.ethiopianreview.com/business/3877 Tue, 22 Sep 2009 09:57:29 +0000 http://zikkir.com/business/?p=5307 The Citizen Hotel in Sacramento became a union shop when a majority of the hotel’s 120 workers signed cards in April saying they wanted to be represented by Unite Here Local 49 — and hotel management agreed to honor the vote.

Millions of other workers could go this route, many without the blessing of management, if the Employee Free Choice Act is approved by Congress and signed by President Obama.

Labor leaders launched an offensive around Labor Day to generate support for the legislation, sidelined so far by the debate over national health care reform. Obama told an AFL-CIO audience in Pittsburgh on Tuesday he supports the act, which would make it easier for workers to organize.

An emotional and high-stakes issue for workers and employers, the law is touted by organized labor as a route to rebuilding the economy and blasted by business interests as the most sweeping and inequitable change to labor policy in more than 70 years.

- bizjournals.com

]]> 3877 2009-09-22 02:57:29 2009-09-22 09:57:29 open open labor-business-square-off-on-organizing-bill publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5307#comments wfw:commentRSS http://zikkir.com/business/5307/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5307 syndication_item_hash 441c56f855d4063de624a5bee02cd754 NM CareerMatch connects college grads to employers http://www.ethiopianreview.com/business/3876 Tue, 22 Sep 2009 09:58:49 +0000 http://zikkir.com/business/?p=5309 It just got a little easier for University of New Mexico and Central New Mexico Community College graduates to find jobs in the state, and for New Mexico employers to discover qualified workers.

A new Web site, NMCareerMatch.com, is hoping to match college graduates with employers in the state.

The concept is simple: Graduates register on the Web site. Their schools confirm that they have indeed graduated. Then, the grads can post resumes and search job listings posted by local employers. Employers can list jobs at no charge and can search resumes.

The site is a collaborative effort between UNM, CNM, Albuquerque Economic Development and the New Mexico Department of Workforce Solutions. It is being underwritten with a $400,000 grant from the U.S. Department of Labor’s Workforce Innovation in Regional Economic Development (WIRED) program. French Mortuary Inc., also has contributed $50,000 to the effort.

- bizjournals.com

]]> 3876 2009-09-22 02:58:49 2009-09-22 09:58:49 open open nm-careermatch-connects-college-grads-to-employers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5309#comments wfw:commentRSS http://zikkir.com/business/5309/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5309 syndication_item_hash ca34b8ed95020780c24f4de221aa6597 Most firms would rehire downsized workers http://www.ethiopianreview.com/business/3777 Wed, 23 Sep 2009 01:27:25 +0000 http://www.ethiopianreview.com/business/?p=3777 Phoenix Business Journal ]]> 3777 2009-09-22 18:27:25 2009-09-23 01:27:25 open open most-firms-would-rehire-downsized-workers publish 0 0 post _edit_last 4 _edit_lock 1253670089 Employees working longer give companies time to plan http://www.ethiopianreview.com/business/3781 Wed, 23 Sep 2009 01:46:33 +0000 http://www.ethiopianreview.com/business/?p=3781 Jacksonville Business Journal ]]> 3781 2009-09-22 18:46:33 2009-09-23 01:46:33 open open employees-working-longer-give-companies-time-to-plan publish 0 0 post _edit_last 4 _edit_lock 1253670395 Attempt to block E-Verify rule for federal contractors fails http://www.ethiopianreview.com/business/3784 Wed, 23 Sep 2009 01:56:23 +0000 http://www.ethiopianreview.com/business/?p=3784 Houston Business Journal ]]> 3784 2009-09-22 18:56:23 2009-09-23 01:56:23 open open attempt-to-block-e-verify-rule-for-federal-contractors-fails publish 0 0 post _edit_last 4 _edit_lock 1253670984 Economic woes leading to increase in EEOC complaints http://www.ethiopianreview.com/business/3787 Wed, 23 Sep 2009 01:57:08 +0000 http://www.ethiopianreview.com/business/?p=3787 Nashville Business Journal ]]> 3787 2009-09-22 18:57:08 2009-09-23 01:57:08 open open economic-woes-leading-to-increase-in-eeoc-complaints publish 0 0 post _edit_last 4 _edit_lock 1253671028 Attorneys suggest severance plans to help prevent discrimination lawsuits http://www.ethiopianreview.com/business/3790 Wed, 23 Sep 2009 01:58:07 +0000 http://www.ethiopianreview.com/business/?p=3790 Wichita Business Journal ]]> 3790 2009-09-22 18:58:07 2009-09-23 01:58:07 open open attorneys-suggest-severance-plans-to-help-prevent-discrimination-lawsuits publish 0 0 post _edit_last 4 _edit_lock 1253671088 Law firms rethink retirement rules in the recession http://www.ethiopianreview.com/business/3793 Wed, 23 Sep 2009 01:59:42 +0000 http://www.ethiopianreview.com/business/?p=3793 Philadelphia Business Journal ]]> 3793 2009-09-22 18:59:42 2009-09-23 01:59:42 open open law-firms-rethink-retirement-rules-in-the-recession publish 0 0 post _edit_last 4 _edit_lock 1253671184 State buyouts, job cuts, take toll on local economy http://www.ethiopianreview.com/business/3796 Wed, 23 Sep 2009 02:00:16 +0000 http://www.ethiopianreview.com/business/?p=3796 The Business Review (Albany) ]]> 3796 2009-09-22 19:00:16 2009-09-23 02:00:16 open open state-buyouts-job-cuts-take-toll-on-local-economy publish 0 0 post _edit_last 4 _edit_lock 1253671217 Kansas City-area hiring begins showing signs of life http://www.ethiopianreview.com/business/3799 Wed, 23 Sep 2009 02:01:00 +0000 http://www.ethiopianreview.com/business/?p=3799 Kansas City Business Journal ]]> 3799 2009-09-22 19:01:00 2009-09-23 02:01:00 open open kansas-city-area-hiring-begins-showing-signs-of-life publish 0 0 post _edit_last 4 _edit_lock 1253671261 Companies offer severance pay in exchange for nondisclosure http://www.ethiopianreview.com/business/3802 Wed, 23 Sep 2009 02:01:48 +0000 http://www.ethiopianreview.com/business/?p=3802 Phoenix Business Journal ]]> 3802 2009-09-22 19:01:48 2009-09-23 02:01:48 open open companies-offer-severance-pay-in-exchange-for-nondisclosure publish 0 0 post _edit_last 4 _edit_lock 1253671310 Matrixx Partners revs up tech recruiting http://www.ethiopianreview.com/business/3805 Wed, 23 Sep 2009 02:02:28 +0000 http://www.ethiopianreview.com/business/?p=3805 Washington Business Journal ]]> 3805 2009-09-22 19:02:28 2009-09-23 02:02:28 open open matrixx-partners-revs-up-tech-recruiting publish 0 0 post _edit_last 4 _edit_lock 1253672071 Sonny’s to add up to 100 jobs at new location http://www.ethiopianreview.com/business/3808 Wed, 23 Sep 2009 02:16:03 +0000 http://www.ethiopianreview.com/business/?p=3808 Orlando Business Journal ]]> 3808 2009-09-22 19:16:03 2009-09-23 02:16:03 open open sonny%e2%80%99s-to-add-up-to-100-jobs-at-new-location publish 0 0 post _edit_lock 1253672165 _edit_last 4 Auto parts retailer sees e-commerce future in Silicon Valley http://www.ethiopianreview.com/business/3811 Wed, 23 Sep 2009 02:16:41 +0000 http://www.ethiopianreview.com/business/?p=3811 Silicon Valley / San Jose Business Journal ]]> 3811 2009-09-22 19:16:41 2009-09-23 02:16:41 open open auto-parts-retailer-sees-e-commerce-future-in-silicon-valley publish 0 0 post _edit_lock 1253672201 _edit_last 4 Supper Club owners go causal with pizza venture http://www.ethiopianreview.com/business/3814 Wed, 23 Sep 2009 02:18:18 +0000 http://www.ethiopianreview.com/business/?p=3814 Sacramento Business Journal ]]> 3814 2009-09-22 19:18:18 2009-09-23 02:18:18 open open supper-club-owners-go-causal-with-pizza-venture publish 0 0 post _edit_lock 1253672299 _edit_last 4 Stimulus failed to end the recession http://www.ethiopianreview.com/business/3817 Wed, 23 Sep 2009 02:19:12 +0000 http://www.ethiopianreview.com/business/?p=3817 Charlotte Business Journal ]]> 3817 2009-09-22 19:19:12 2009-09-23 02:19:12 open open stimulus-failed-to-end-the-recession publish 0 0 post _edit_lock 1253672352 _edit_last 4 Cap mix shrinks as dining expands http://www.ethiopianreview.com/business/3820 Wed, 23 Sep 2009 02:19:44 +0000 http://www.ethiopianreview.com/business/?p=3820 Business First of Columbus ]]> 3820 2009-09-22 19:19:44 2009-09-23 02:19:44 open open cap-mix-shrinks-as-dining-expands publish 0 0 post _edit_lock 1253672385 _edit_last 4 Bazo’s Fresh Mexican Grill expands with second restaurant http://www.ethiopianreview.com/business/3823 Wed, 23 Sep 2009 02:20:51 +0000 http://www.ethiopianreview.com/business/?p=3823 Business First of Louisville ]]> 3823 2009-09-22 19:20:51 2009-09-23 02:20:51 open open bazo%e2%80%99s-fresh-mexican-grill-expands-with-second-restaurant publish 0 0 post _edit_lock 1253674376 _edit_last 4 $5 million retail center begins to take shape in Clarksville http://www.ethiopianreview.com/business/3826 Wed, 23 Sep 2009 02:53:35 +0000 http://www.ethiopianreview.com/business/?p=3826 Business First of Louisville ]]> 3826 2009-09-22 19:53:35 2009-09-23 02:53:35 open open 5-million-retail-center-begins-to-take-shape-in-clarksville publish 0 0 post _edit_lock 1253674416 _edit_last 4 Retail industry’s performance is provoking mixed reactions http://www.ethiopianreview.com/business/3829 Wed, 23 Sep 2009 02:54:07 +0000 http://www.ethiopianreview.com/business/?p=3829 San Antonio Business Journal ]]> 3829 2009-09-22 19:54:07 2009-09-23 02:54:07 open open retail-industry%e2%80%99s-performance-is-provoking-mixed-reactions publish 0 0 post _edit_lock 1253674447 _edit_last 4 The Cutting Board heads to Reidsville mixed-use project http://www.ethiopianreview.com/business/3832 Wed, 23 Sep 2009 02:54:49 +0000 http://www.ethiopianreview.com/business/?p=3832 The Business Journal of the Greater Triad Area ]]> 3832 2009-09-22 19:54:49 2009-09-23 02:54:49 open open the-cutting-board-heads-to-reidsville-mixed-use-project publish 0 0 post _edit_lock 1253674489 _edit_last 4 BevMo toasts $500M in sales http://www.ethiopianreview.com/business/3835 Wed, 23 Sep 2009 02:55:36 +0000 http://www.ethiopianreview.com/business/?p=3835 San Francisco Business Times ]]> 3835 2009-09-22 19:55:36 2009-09-23 02:55:36 open open bevmo-toasts-500m-in-sales publish 0 0 post _edit_lock 1253674536 _edit_last 4 Oakland scores at Coliseum http://www.ethiopianreview.com/business/3838 Wed, 23 Sep 2009 02:56:06 +0000 http://www.ethiopianreview.com/business/?p=3838 San Francisco Business Times ]]> 3838 2009-09-22 19:56:06 2009-09-23 02:56:06 open open oakland-scores-at-coliseum publish 0 0 post _edit_lock 1253677512 _edit_last 4 Asian markets in red; Hang Seng dips 151pts http://www.ethiopianreview.com/business/3875 Wed, 23 Sep 2009 03:09:54 +0000 http://zikkir.com/business/?p=5311 Asian markets ended in the red today.

The Nikkei dropped 73 points to 10,371. The Hang Seng slipped 151 points, erasing earlier gains, to end at 21,472.

The Taiwan Weighted dropped 24 points to 7,502.

The Seoul Composite and the Shanghai Composite ended flat at 1,695 and 2,967, respectively.
_______________________________________________________
(Updated at 0916 hrs)

Asian markets are mostly in red this morning.

The Nikkei has slipped 73 points to 10,371. The Hang Seng, however, has added 95 points to 21,719.

The Shanghai Composite has dropped 45 points (1.5%) to 2,917.

The Seoul Composite is down four points at 1,696. The Taiwan Weighted has moved down 19 points to 7,508.

- Business Standard

]]> 3875 2009-09-22 20:09:54 2009-09-23 03:09:54 open open asian-markets-in-red-hang-seng-dips-151pts publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5311#comments wfw:commentRSS http://zikkir.com/business/5311/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5311 syndication_item_hash 22995f2c39af880cd4c9b9aa7416b190 FIIs net sellers Rs 297cr in F&O on Friday http://www.ethiopianreview.com/business/3874 Wed, 23 Sep 2009 03:10:54 +0000 http://zikkir.com/business/?p=5313 The Foreign Institutional Investors (FIIs) were net sellers of Rs 296.77 crore in futures and options segments on Friday.

According to the data released by the NSE, FIIs were net sellers of index futures to the tune of Rs 802.64 crore while bought index options worth Rs 1,050.45 crore. However, they were net sellers of stock futures to the tune of Rs 592.08 crore while bought stock options worth Rs 47.51 crore.

- Business Standard

]]> 3874 2009-09-22 20:10:54 2009-09-23 03:10:54 open open fiis-net-sellers-rs-297cr-in-fo-on-friday publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5313#comments wfw:commentRSS http://zikkir.com/business/5313/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5313 syndication_item_hash ed17abed21039e57f1e2078b622c24c2 F&O OUTLOOK: Next resistance may be at 5,100 http://www.ethiopianreview.com/business/3873 Wed, 23 Sep 2009 03:12:28 +0000 http://zikkir.com/business/?p=5315 The Nifty is finding resistance around the 5,000 level and has not been able to close above this level in the last two days of trading. According to an analyst at Sharekhan Research, the next resistance level would be around 5,100.

The trading pattern in the futures & options segment suggests that a correction is not expected soon. A significant build-up in the 5,000 put option was visible during the week ended September 18 and it is likely that the September series will expire around this level.

According to technical analyst Kamalesh Langote, a rising wedge is being formed by the Sensex, similar to the January 2008 pattern. In both instances, the wedge was formed over several weeks and followed by a market collapse.

The rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to regular triangles which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.

In the current situation, markets have broken out upwards from the wedge, but the momentum has stalled. The rising wedge contention is still valid if the breakout proves to be a false one. The confirmation would be a break of 16,000. For the Nifty, the level will be roughly at 4,700-4,750.

The rising wedge can be one of the most difficult chart patterns to accurately recognise. While it is a consolidation formation, the loss of upside momentum on each successive high gives the pattern its bearish bias.

However, the series of higher highs and lows keeps the trend inherently bullish. The final break of support indicates that the forces of supply have finally ended and lower prices are likely ahead. There are no measuring techniques to estimate the decline.

Normally, the implication of rising wedge is a sharp correction, or a 50 per cent retracement of the current pullback. The Sensex has moved up from 8,047 on March 9 to 16,750 on September 17 and, hence, a possible correction in the Sensex could be up to 13,000. The Nifty rose from 2,539 to 5,103 and, hence, a 50 per cent retracement will be around the 3,800 level.

- Business Standard

]]> 3873 2009-09-22 20:12:28 2009-09-23 03:12:28 open open fo-outlook-next-resistance-may-be-at-5100 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5315#comments wfw:commentRSS http://zikkir.com/business/5315/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5315 syndication_item_hash 36dbbd0fa7996ba138f7fe742923fc02 Obama seeks to bridge gaps in West Asian peace talks http://www.ethiopianreview.com/business/3872 Wed, 23 Sep 2009 03:13:37 +0000 http://zikkir.com/business/?p=5317 President Barack Obama hopes to rekindle the faltering West Asia peace process this week in three-way talks with Israeli Prime Minister Benjamin Netanyahu and Palestinian leader Mahmud Abbas.

The US leader will meet separately with the two men tomorrow on the sidelines of the United Nations general assembly, before hosting a trilateral summit, the White House announced in a surprise move late Saturday.

The talks will seek “to lay the groundwork for the relaunch of negotiations, and to create a positive context for those negotiations so that they can succeed,” White House spokesman Robert Gibbs said in a statement.

Ahead of the talks, Israeli Defense Minister Ehud Barak is to meet US Defense Secretary Robert Gates in Washington on Monday, an Israeli defense ministry statement said, without providing further details.

The three-way meeting marks the first trilateral summit between the leaders since Obama came to the White House in January, vowing to make the search for an elusive peace in West Asia a priority of his new Democratic Party administration.

And it comes just after the new US envoy to the region, George Mitchell, returned empty-handed from a mission in West Asia having failed to persuade Israeli leaders to freeze new settlement construction.

- Business Standard

]]> 3872 2009-09-22 20:13:37 2009-09-23 03:13:37 open open obama-seeks-to-bridge-gaps-in-west-asian-peace-talks publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5317#comments wfw:commentRSS http://zikkir.com/business/5317/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5317 syndication_item_hash ccfb5c91d13f85bdf0019ff0f2e63236 Coachmen Travel Trailers with Maytag Refrigerators http://www.ethiopianreview.com/business/3871 Wed, 23 Sep 2009 03:35:56 +0000 http://zikkir.com/business/?p=5319 Vehicle Make / Model: Model Year(s):
COACHMEN / CASCADE 2004-2006
COACHMEN / CATALINA 2002-2005
COACHMEN / OASIS 2004
Manufacturer: COACHMEN INDUSTRIES, INC. Mfr’s Report Date: SEP 11, 2009
NHTSA CAMPAIGN ID Number: 09V353000 N/A NHTSA Action Number: N/A
Component: EQUIPMENT

Potential Number of Units Affected: 199

Summary: COACHMEN INDUSTRIES IS RECALLING CERTAIN MODEL YEAR 2002 THROUGH 2006 TRAVEL TRAILERS MANUFACTURED BETWEEN MARCH 2002 AND JUNE 2005 EQUIPPED WITH CERTAIN MODEL MAYTAG REFRIGERATORS. THE RELAY THAT TURNS ON THE REFRIGERATOR CAN OVERHEAT.

Consequence: OVERHEATING CAN RESULT IN A FIRE.

Remedy: COACHMEN WILL NOTIFY OWNERS AND REPAIRS WILL BE MADE BY MAYTAG FREE OF CHARGE. THE SAFETY RECALL IS EXPECTED TO BEGIN DURING SEPTEMBER OR OCTOBER 2009. OWNERS MAY CONTACT MAYTAG TOLL-FREE AT 1-866-533-9817 OR COACHMEN CUSTOMER SERVICE AT 1-574-266-4030 OPTION #5.

Notes: OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION’S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

- US Recall News

]]> 3871 2009-09-22 20:35:56 2009-09-23 03:35:56 open open coachmen-travel-trailers-with-maytag-refrigerators publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5319#comments wfw:commentRSS http://zikkir.com/business/5319/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5319 syndication_item_hash d9857782ca05ac424971b4e6f5129933 2009 and 2010 Nissan Altima and Maxima Cars Recalled http://www.ethiopianreview.com/business/3870 Wed, 23 Sep 2009 03:37:53 +0000 http://zikkir.com/business/?p=5321 Vehicle Make / Model: Model Year(s):
NISSAN / ALTIMA 2009-2010
NISSAN / MAXIMA 2009-2010
Manufacturer: NISSAN NORTH AMERICA, INC. Mfr’s Report Date: SEP 10, 2009
NHTSA CAMPAIGN ID Number: 09V358000 N/A NHTSA Action Number: N/A
Component: SUSPENSION

Potential Number of Units Affected: 26398

Summary: NISSAN IS RECALLING CERTAIN MODEL YEAR 2009 AND 2010 ALTIMA AND MAXIMA PASSENGER CARS. THE UPPER FRONT STRUT INSULATORS MAY HAVE BEEN MANUFACTURED OUT OF SPECIFICATION RESULTING IN A POTENTIAL FOR THE STRUT INSULATOR TO CRACK.

Consequence: IF THE STRUT INSULATOR IS CRACKED, THERE IS A POTENTIAL FOR THE STRUT ROD TO COME OUT OF ITS MOUNTING POSITION, WHICH COULD AFFECT VEHICLE STABILITY AND INCREASE THE RISK OF A CRASH.

Remedy: NISSAN WILL NOTIFY OWNERS AND DEALERS WILL REPLACE BOTH LEFT AND RIGHT SIDE FRONT STRUT INSULATORS FREE OF CHARGE. THE SAFETY RECALL IS EXPECTED TO BEGIN ON OR ABOUT OCTOBER 5, 2009. OWNERS MAY CONTACT NISSAN AT 1-615-725-1000.

Notes: OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION’S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

- US Recall News

]]> 3870 2009-09-22 20:37:53 2009-09-23 03:37:53 open open 2009-and-2010-nissan-altima-and-maxima-cars-recalled publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5321#comments wfw:commentRSS http://zikkir.com/business/5321/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5321 syndication_item_hash 3771cfafc579296e0ba06e2311233daf Concentrics Restaurants pulls plug on TROIS http://www.ethiopianreview.com/business/3841 Wed, 23 Sep 2009 03:48:36 +0000 http://www.ethiopianreview.com/business/?p=3841 Atlanta Business Chronicle ]]> 3841 2009-09-22 20:48:36 2009-09-23 03:48:36 open open concentrics-restaurants-pulls-plug-on-trois publish 0 0 post _edit_lock 1253677717 _edit_last 4 Known for its gourmet food, Tastefully Simple helps feed the hungry http://www.ethiopianreview.com/business/3844 Wed, 23 Sep 2009 03:49:15 +0000 http://www.ethiopianreview.com/business/?p=3844 Minneapolis / St. Paul Business Journal ]]> 3844 2009-09-22 20:49:15 2009-09-23 03:49:15 open open known-for-its-gourmet-food-tastefully-simple-helps-feed-the-hungry publish 0 0 post _edit_lock 1253677818 _edit_last 4 Stella’s Fish Cafe owner takes new concept to Lakeville site http://www.ethiopianreview.com/business/3847 Wed, 23 Sep 2009 03:51:09 +0000 http://www.ethiopianreview.com/business/?p=3847 Minneapolis / St. Paul Business Journal ]]> 3847 2009-09-22 20:51:09 2009-09-23 03:51:09 open open stella%e2%80%99s-fish-cafe-owner-takes-new-concept-to-lakeville-site publish 0 0 post _edit_lock 1253677870 _edit_last 4 Miller serves up Sammy Scott’s eatery http://www.ethiopianreview.com/business/3850 Wed, 23 Sep 2009 03:51:55 +0000 http://www.ethiopianreview.com/business/?p=3850 St. Louis Business Journal ]]> 3850 2009-09-22 20:51:55 2009-09-23 03:51:55 open open miller-serves-up-sammy-scott%e2%80%99s-eatery publish 0 0 post _edit_lock 1253677916 _edit_last 4 Yurtopia targets $5 million in revenue http://www.ethiopianreview.com/business/3853 Wed, 23 Sep 2009 03:53:12 +0000 http://www.ethiopianreview.com/business/?p=3853 St. Louis Business Journal ]]> 3853 2009-09-22 20:53:12 2009-09-23 03:53:12 open open yurtopia-targets-5-million-in-revenue publish 0 0 post _edit_lock 1253679257 _edit_last 4 Economy changes style of malls http://www.ethiopianreview.com/business/3856 Wed, 23 Sep 2009 04:17:02 +0000 http://www.ethiopianreview.com/business/?p=3856 Philadelphia Business Journal ]]> 3856 2009-09-22 21:17:02 2009-09-23 04:17:02 open open economy-changes-style-of-malls publish 0 0 post _edit_lock 1253679423 _edit_last 4 Bahama Breeze http://www.ethiopianreview.com/business/3859 Wed, 23 Sep 2009 04:20:30 +0000 http://www.ethiopianreview.com/business/?p=3859 Jacksonville Business Journal]]> 3859 2009-09-22 21:20:30 2009-09-23 04:20:30 open open bahama-breeze publish 0 0 post _edit_lock 1253679631 _edit_last 4 Jacksonville restaurateur serves his cookbook to national chains http://www.ethiopianreview.com/business/3862 Wed, 23 Sep 2009 04:31:15 +0000 http://www.ethiopianreview.com/business/?p=3862 Jacksonville Business Journal ]]> 3862 2009-09-22 21:31:15 2009-09-23 04:31:15 open open jacksonville-restaurateur-serves-his-cookbook-to-national-chains publish 0 0 post _edit_lock 1253681119 _edit_last 4 Wake Forest University’s back on top to the annual North Carolina Bar Exam http://www.ethiopianreview.com/business/3865 Wed, 23 Sep 2009 04:34:14 +0000 http://www.ethiopianreview.com/business/?p=3865 Triangle Business Journal ]]> 3865 2009-09-22 21:34:14 2009-09-23 04:34:14 open open wake-forest-university%e2%80%99s-back-on-top-to-the-annual-north-carolina-bar-exam publish 0 0 post _edit_lock 1253680456 _edit_last 4 Vodafone 360 replaces Vodafone Live suit http://www.ethiopianreview.com/business/3908 Thu, 24 Sep 2009 01:39:03 +0000 http://zikkir.com/business/?p=5555 London: Vodafone will this week unveil its answer to the threat posed by the iPhone and its recent touchscreen imitators with a new service – called Vodafone 360 – that integrates a host of social networks, such as Facebook and Twitter, and includes a store of applications that will eventually be available to the company’s more than 315 million global customers.

It will replace the Vodafone Live suite of mobile internet services, which was heralded as the company’s most important launch ever when it was unveiled seven years ago but has been made to look “tired” by the recent proliferation of mobile applications and the success of devices such as the iPhone, Palm Pre and handsets using Google’s Android software.

Vodafone 360 is an attempt by the world’s largest network to retain the direct connection between mobile phone operators and consumers which these new devices have undermined by allowing users to download their own applications from third-party “app stores”.

The explosion in touchscreen devices and the success of the iTunes apps store has made downloadable mobile widgets the hottest thing in mobile technology and has given handset manufacturers a way of making revenues from users above and beyond the initial sale of a handset. Nokia, with its Ovi store, RIM, with its BlackBerry App World, and Samsung have all leapt into the applications market. But all these services risk turning the mobile phone operators into little more than providers carrying traffic for other people’s services.

Vodafone stocks the iPhone in 11 countries and sells the HTC Magic, which uses Google’s Android platform, in the UK; but it has long maintained that the most important relationship for a mobile phone customer should be with their network, not with the maker of their handset.

The company gave software developers the information they need to design applications for phones supporting the new Vodafone store.

Unlike Apple’s iTunes and Google’s Android Marketplace, however, users will be able to buy applications by adding the cost to their phone bills, instead of having to register a credit card with a third party. – Guardian News and Media Ltd

]]> 3908 2009-09-23 18:39:03 2009-09-24 01:39:03 open open vodafone-360-replaces-vodafone-live-suit publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5555#comments wfw:commentRSS http://zikkir.com/business/5555/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5555 syndication_item_hash dd51d76aa6682e15cb5cebc3f6f24083 US moves to extend unemployment benefits http://www.ethiopianreview.com/business/3907 Thu, 24 Sep 2009 01:40:16 +0000 http://zikkir.com/business/?p=5558 Washington: Predictions that the Great Recession is running out of steam aside, the House of Representatives is taking up emergency legislation this week to help the millions of Americans who see no immediate end to their economic miseries.

A Bill offered by Democratic Representative Jim McDermott and expected to pass easily would provide 13 weeks of extended unemployment benefits for more than 300,000 jobless people who live in states with unemployment rates of at least 8.5 per cent and who are scheduled to run out of benefits by the end of September.

The 13-week extension would supplement the 26 weeks of benefits most states offer and the federally funded extensions of up to 53 weeks that Congress approved in legislation last year and in the stimulus Bill enacted last February.

People across the United States “have been calling my office to tell me they still cannot find work a year or more after becoming unemployed, and they need some additional help to keep their heads above water,” McDermott said.

Critics of unemployment insurance argue that it can be a disincentive to looking for work, and that extending benefits at a time the economy is showing signs of recovery could be counterproductive.

But this recession has been particularly pernicious to the job market, others say.

Some 5 million people, about one-third of those on the unemployment list, have been without a job for six months or more, a record since data started being recorded in 1948, according to the research and advocacy group National Employment Law Project (NELP).

“It smashes any other figure we have ever seen. It is an unthinkable number,” said Andrew Stettner, NELP’s deputy director. He said there are currently about six jobless people for every job opening, so it’s unlikely people are purposefully living off unemployment insurance while waiting for something better to come along.

The current state unemployment cheque is about $300 (Dh1,101) a month, supplemented by $25 included in the Stimulus Act.

That doesn’t go very far when a loaf of bread can cost $2.79, Democratic Senate Finance Committee Chairman Max Baucus said at a hearing last week on the unemployment insurance issue.

“We need to keep our unemployed neighbours from falling into poverty. We need to figure out how best to make our safety net work,” Baucus said.

The jobless rate stands at 9.7 per cent and is likely to hover above 10 per cent for much of 2010. Gary Burtless, a senior fellow at the Brookings Institution, said at the Finance Committee hearing that, according to Labour Department figures, 51 per cent of unemployment insurance claimants exhausted their regular benefits in July, the highest rate ever.

“It is likely the exhaustion rate will continue to increase in coming months” as the unemployment rate continues to rise, he said.

Stettner predicted that Congress will likely have to continue extending jobless benefits through 2011.

McDermott in July introduced a more ambitious Bill that would have extended through 2010 the compensation programmes included in the Stimulus Act. Those benefits are now scheduled to expire at the end of this year.

But with a price tag of up to $70 billion, that Bill would have been far more difficult to pass. McDermott instead decided to offer the scaled-down 13-week extension to meet the urgent needs of those seeing their benefits disappear this year.

McDermott said his Bill would not add to the deficit because it would extend for a year a federal unemployment tax of $14 per employee per year that employers have been paying for more than 30 years. It would also require better reporting on newly hired employees to reduce unemployment insurance overpayments.

Three-fourths of the 400,000 workers projected to exhaust their benefits this month live in high unemployment states that would qualify for the additional 13 weeks of benefits under his Bill, McDermott said. – AP

]]> 3907 2009-09-23 18:40:16 2009-09-24 01:40:16 open open us-moves-to-extend-unemployment-benefits publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5558#comments wfw:commentRSS http://zikkir.com/business/5558/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5558 syndication_item_hash 2919e9dcf43dcc1753e0312a8de8f43f The G-20’s war on bankers’ pay http://www.ethiopianreview.com/business/3906 Thu, 24 Sep 2009 01:41:12 +0000 http://zikkir.com/business/?p=5561 When leaders of the Group of 20 industrialised nations gather in Pittsburgh later this week for a summit, one item on the agenda will be compensation.

Yours, assuming you are a banker, not theirs.

Our elected and appointed representatives appear to be capitalising on public anger toward bankers and bailouts as an excuse for mission creep.

At a meeting earlier this month in London – a pre-summit summit, without the heads of state, to set the agenda for the summit – the G-20 finance ministers and central bank governors laid out a set of principles to prevent “excessive short-term risk taking and mitigate system risk.”

In addition to the imposition of higher capital requirements and stronger prudential oversight, the officials want to introduce “global standards on pay structure” to better align compensation with performance and ensure financial stability.

Is there a connection? Or are governments using this as an opportunity to apply the Emanuel Doctrine – never let a serious crisis go to waste – enunciated by White House chief of staff Rahm Emanuel? It’s an opportunity to do things you couldn’t do before.

There is something unseemly about government setting private-sector pay. The fact that French President Nicolas Sarkozy and German Chancellor Angela Merkel are behind the initiative suggests an ulterior motive.

“It’s the culmination of a 50-year campaign to reverse the results of Second World War, which saw the Anglo-Saxon system triumph over the European system,” says Bernard Connolly, founder of Connolly Global, a London research firm.

“They are very close to reversing it,” increasing the power of bureaucrats over markets.

There are two related strands underlying the drive to realign banker pay, according to Philip Whyte, senior research fellow at the Centre for European Reform, a London think tank. The first is the belief that financial sector pay is too high. The second is that the compensation structure contributed to the crisis, with incentives encouraging excessive risk-taking in pursuit of short-term profits.

My guess is most people think multi-million-dollar pay packages in the financial sector are outrageous, especially relative to recent performance. I’d also guess that most Americans, aspiring to wealth themselves, don’t want bureaucrats involved.

It’s one thing when the government is a stakeholder in a company, as it is with Citigroup, Bank of America and American International Group. We, the taxpayers, are involuntary owners of these companies and have no interest in rewarding failure.

It’s quite another when government has no ownership stake, where compensation is a matter for shareholders and boards of directors.

This level of government involvement may be business as usual for the European Union. In the United States, where the Federal Reserve is cooking up a plan of its own to insert regulators into the compensation process, it reads like fake news from the Daily Show.

The good news is, the Obama administration isn’t wild about setting individual compensation. The bad news is, UK Prime Minister Gordon Brown is. He wants to set bonuses and sanction banks that don’t comply.

Can a one-world pay scale be far behind? That way, no financial institution would be tempted to depart the homogeneous European Union for what used to be the more capitalist-friendly, entrepreneur-oriented climes of the United States. and the United Kingdom.

OK, bankers screwed up. What should we do about it? The answer isn’t putting government bureaucrats on the compensation committee.

“Public companies should pay bonuses out of pretax profits,” says Michael Aronstein, president of Marketfield Capital in New York.

No profits, no bonuses.

Another option is to “replicate the type of liability that existed with private partnerships,” he says.

The firm loses money, the officers, directors and top earners lose money.

If history is any guide, regulation – or, in this case, regulators – will prove to be unworthy of the competition. Bankers will find a way to evade the rules and exploit the loopholes to their own advantage.

It seems like a lot of wasted energy when, with proper incentives, these clever rascals would put their considerable talents to better use: working on behalf of shareholders. – Gulfnews

]]> 3906 2009-09-23 18:41:12 2009-09-24 01:41:12 open open the-g-20%e2%80%99s-war-on-bankers%e2%80%99-pay publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5561#comments wfw:commentRSS http://zikkir.com/business/5561/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5561 syndication_item_hash c0a3cbfc2de7bb7662e53b134111b07c ‘Extraordinary crisis’ has finally hit bottom http://www.ethiopianreview.com/business/3905 Thu, 24 Sep 2009 01:41:58 +0000 http://zikkir.com/business/?p=5564 Helsinki: The global economic downturn has probably hit bottom and the US may have emerged from recession at the end of July or in August, said Paul Krugman, the Nobel Prize winning economist.

“The end of the world appears to have been postponed,” Krugman, a professor at Princeton University, said at a seminar in Helsinki on Tuesday. “We’ve had an extraordinarily terrible crisis” though “we’ve probably hit bottom” as “world output has turned positive.”

The US economy shrank 1 per cent in the second quarter compared with the prior three months. The drop in GDP was the fourth in a row, the longest contraction since quarterly records began in 1947. The world’s largest economy has shrunk 3.9 per cent since last year’s second quarter, making this the deepest recession since the Great Depression.

Krugman, who won the Nobel Prize in economics last year for his theories on world trade, said the US has $1.1 trillion in annual capacity “staying idle.”

The Nobel Laureate said the world has become “highly subject” to financial bubbles and its willingness to fail to recognise the bubbles was “remarkable.”

A worldwide and simultaneous push to deleverage is “catastrophic,” Krugman said. The result is a “very severe recession,” he added.

US unemployment may rise until early in 2011, Krugman said. The recovery is likely to be “slow and painful,” he added.

The global nature of the economic crisis makes an export-led recovery difficult to achieve, Krugman said. “The problem is that this is a global financial crisis. How can we have an export-led recovery? Unless we find another planet to export to… can’t really do that,” he said. – Bloomberg

]]> 3905 2009-09-23 18:41:58 2009-09-24 01:41:58 open open %e2%80%98extraordinary-crisis%e2%80%99-has-finally-hit-bottom publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5564#comments wfw:commentRSS http://zikkir.com/business/5564/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5564 syndication_item_hash 2dc16c74c063b54710fd51eae8144643 Housing may suffer a relapse as Obama mulls end to state aid http://www.ethiopianreview.com/business/3904 Thu, 24 Sep 2009 01:43:02 +0000 http://zikkir.com/business/?p=5567 Boston: The recovering housing market may be heading for a relapse as President Barack Obama and Federal Reserve Chairman Ben Bernanke consider ending support for the source of the global financial crisis.

The Obama administration is studying whether to let a first-time home buyers’ tax credit expire as scheduled at the end of November. Bernanke and his Fed colleagues may continue talking this week about how to wind down purchases of mortgage- backed securities, according to Peter Hooper, Chief Economist at Deutsche Bank Securities.

The two programmes have helped stabilise real-estate demand, with new-house sales rising 9.6 per cent in July from the prior month, the most since 2005.

Ending these efforts may stifle the housing rebound by depressing sales and pushing up both mortgage-backed bond yields and interest rates on home loans, even in the face of the record-low zero to 0.25 per cent short-term rates the Fed has engineered, said economist Thomas Lawler.

A weaker housing market would likely dampen the economic recovery and undercut shares of builders including Fort Worth, Texas-based DR Horton Inc and Miami-based Lennar Corp, that have risen 40 per cent this year, based on the Standard and Poor’s Supercomposite Homebuilding Index of 12 companies.

“Things could get ugly,” said Lawler, an independent consultant in Leesburg, Virginia, who spent 22 years at Fannie Mae, a Washington, DC-based government-controlled mortgage-finance company. “We could be facing a triple whammy at the end of the year: the expiration of the tax credit, the end of the Fed mortgage-buying programme and rising foreclosures.”

This is the first major test of policymakers’ ability to coordinate exit strategies as they seek to wean the economy off government support, said Brian Bethune, Chief Financial Economist of IHS Global Insight, a forecasting company in Lexington, Massachusetts. They have already acted separately, with the administration ending its $3 billion (Dh11 billion) “cash-for-clunkers” automobile trade-in programme on August 24 and the Fed starting to wind down its purchases of Treasury debt, which totalled $285.2 billion between March 25, when the initiative began, and September 16.

Bernanke and his colleagues, who meet today and on Wednesday to map monetary strategy, discussed “tapering” off the Fed’s purchases of mortgage-backed securities and housing-agency debt at their last gathering in August, according to the minutes of that meeting. No decision was made by the central bank’s policy-making Federal Open Market Committee.

Under the current programme, the Fed is scheduled to buy up to $1.25 trillion of mortgage-backed securities and $200 billion of agency debt by the end of the year. So far, it has purchased $862 billion of the former and $125 billion of the latter.

A trio of Fed presidents – Jeffrey Lacker of Richmond, James Bullard of St. Louis and Dennis Lockhart of Atlanta – has publicly raised the possibility the central bank might not spend all the money authorised for the mortgage-backed securities. Lacker questioned whether the economy needs the additional stimulus in an August 27 speech.

New York Fed President William Dudley, who is vice chairman of the FOMC, has sounded more cautious.

“The market expects us to complete these programmes,” he said. “To contradict that market expectation is a pretty high hurdle.”

An abrupt stop might push up mortgage rates by a half to one percentage point, said Hooper, a former Fed official. Tapering off – by reducing weekly purchases and stretching them beyond the end of the year – would have a more muted effect, pushing rates up by at least a quarter percentage point, he said.- Gulfnews

]]> 3904 2009-09-23 18:43:02 2009-09-24 01:43:02 open open housing-may-suffer-a-relapse-as-obama-mulls-end-to-state-aid publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5567#comments wfw:commentRSS http://zikkir.com/business/5567/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5567 syndication_item_hash 57faabab0789e7c044053c24623733ca G20’s financial revamp will take toll on banks http://www.ethiopianreview.com/business/3903 Thu, 24 Sep 2009 01:43:44 +0000 http://zikkir.com/business/?p=5570 New York: Global leaders meet this week seeking to deliver the broadest financial regulation overhaul since the 1930s, potentially threatening profits and stock prices of banks from Goldman Sachs Group Inc to Barclays Plc.

US President Barack Obama and his Group of 20 counterparts convene on September 24-25 to cement a plan to force banks to curb leverage, hold more equity capital and keep a greater pool of assets that can be easily traded. Restraining bankers’ pay and narrowing imbalances in trade and savings will also feature on the agenda as officials try to hammer out an accord to prevent a repeat of the worst crisis since the Great Depression.

By limiting the scope of banks to invest and trade, governments may check this year’s 22 per cent gain in the Standard & Poor’s 500 Financial Index. That may be a price they’re willing to pay to prevent a repeat of the risk-taking that sparked the collapse of Lehman Brothers Holdings Inc a year ago, a worldwide recession and bank rescues.

“Regulation will make banks less profitable by increasing the cost of doing business,” said Andrew Clare, a professor at Cass Business School and a former Bank of England official. “If banks are going to benefit from taxpayer largesse then they need to act in a way that doesn’t hurt taxpayers or the economy.”

The summit, which will also be attended by UK Prime Minister Gordon Brown, French President Nicolas Sarkozy and Chin-ese President Hu Jintao, will also debate how to drive the economic recovery, avoid protectionism, improve accountancy and revamp governance of the International Monetary Fund. The officials will also try to devise a framework to generate a more balanced world economy through greater US savings, European investment and Chinese domestic-demand.

Leaders travel to Pittsburgh amid voter disquiet after governments used public money to bail out banks only to see many of them quickly return to profit and resume setting aside billions for bonuses.

Under consideration: forcing banks to augment their capital buffers to better account for risk, retain more earnings and satisfy a leverage ratio, which measures equity as a proportion of total holdings. They may also consider a proposal to tie pay to capital levels.

“There has been a culture that rewards short-term thinking, that used leverage to take exorbitant risks that were unsustainable for the system as a whole,” Obama said in a September 14 interview. “That’s the culture I think that we’ve got to reverse.” The crackdown could lower profitability by a third at Goldman, Barclays and Deutsche Bank AG’s investment bank, JPMorgan Chase & Co analysts said. – Gulfnews

]]> 3903 2009-09-23 18:43:44 2009-09-24 01:43:44 open open g20%e2%80%99s-financial-revamp-will-take-toll-on-banks publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5570#comments wfw:commentRSS http://zikkir.com/business/5570/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5570 syndication_item_hash abe973e97abc873297c8449fd62d9577 Libya buys Canada oil company after talks with China collapse http://www.ethiopianreview.com/business/3902 Thu, 24 Sep 2009 01:44:43 +0000 http://zikkir.com/business/?p=5573 New York: Canada-based oil producer Verenex Energy Inc said it has agreed to be sold to the Libyan Investment Authority for about C$314.1 million (Dh1.07 billion) in cash, after a better deal with a Chinese firm fell through.

In a memorandum of understanding announced Friday, the sovereign wealth fund agreed to pay C$7.09 per share for Verenex’s outstanding shares, a steep discount to its original commitment of C$10 per share in March, when it promised to match an offer by China’s CNPC International Ltd.

Based on Verenex’s 44.3 million shares outstanding at June 30, the deal is valued at about C$314.1 million.

Verenex’s deal with CNPC had been troubled for months.

In March, Libya’s state-run National Oil Corp said it would exercise its right of first refusal, which gave it the right to block CNPC’s bid to buy the Can-adian oil and gas firm. Verenex has operations in Libya’s Area-47, a region estimated to hold roughly 2.15 billion barrels of crude oil reserves. Then in June, Libya’s NOC claimed that Verenex had acquired Area 47 through an improper bidding process.

CNPC remained interested after an August 24 deadline for the deal passed without a decision from Libyan authorities, but in early September, Verenex announced that the Chinese company had withdrawn. – AP

]]> 3902 2009-09-23 18:44:43 2009-09-24 01:44:43 open open libya-buys-canada-oil-company-after-talks-with-china-collapse publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5573#comments wfw:commentRSS http://zikkir.com/business/5573/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5573 syndication_item_hash 7edf8e25cbe11cc2b0b9fbb26765189f Dollar strengthens on talk of stimulus exit http://www.ethiopianreview.com/business/3901 Thu, 24 Sep 2009 01:46:12 +0000 http://zikkir.com/business/?p=5576 London: The dollar rose to a one-week high against the yen and climbed versus the euro on speculation US policymakers will signal they may withdraw economic stimulus measures, boosting the appeal of the nation’s assets.

The dollar advanced to a two-week high against the pound and strengthened versus 13 of the 16 major currencies before a report that economists said will show an index of US leading indicators gained for a fifth month, backing the case for the Federal Reserve to wean the economy off support.

The difference in yield between 10-year Treasuries and comparable Japanese government bonds, known as JGBs, widened to 212 basis points from 207 basis points at the start of the month.

“Investors are keen to see to what extent the Fed will acknowledge the improvement in the recent economic data and the market might be positioning for that,” said Henrik Gullberg, a currency strategist in London at Deutsche Bank. “The yield spread between the Treasuries and JGBs has widened, and that tends to be supportive of the US currency as well.”

The dollar rose to 92.05 yen as of 9.30am in London, from 91.29 yen in New York on Friday, after earlier reaching 92.19 yen, the highest level since September 10. It strengthened to $1.4662 per euro, from $1.4712. The US currency advanced to $1.6186 versus the pound, from $1.6271, after earlier touching $1.6135, the most since September 2. The yen fell to as low as 135.18 per euro, the weakest level since August 25, before trading at 134.90, from 134.33 last week. Japan’s currency declined 0.3 per cent to 79.38 versus Australia’s dollar.

The Dollar Index, which the ICE uses to track the dollar against the currencies of six major US trading partners, rose 0.5 per cent to 76.839. It’s fallen 5.5 per cent this year. The Fed will keep its target rate for overnight loans in a range of zero to 0.25 per cent at its two-day policy meeting starting today, according to all 91 economists surveyed by Bloomberg News. – Bloomberg

]]> 3901 2009-09-23 18:46:12 2009-09-24 01:46:12 open open dollar-strengthens-on-talk-of-stimulus-exit publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5576#comments wfw:commentRSS http://zikkir.com/business/5576/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5576 syndication_item_hash c33628bc92d7efb5d5020e3783266f1e India data expected to show more price rises http://www.ethiopianreview.com/business/3900 Thu, 24 Sep 2009 01:46:52 +0000 http://zikkir.com/business/?p=5579 New Delhi/Mumbai: India will release inflation data on Thursday that may show the wholesale price index accelerated for the second week as insufficient rains reduced harvests and stoked food prices.

The benchmark wholesale-price index climbed 0.12 per cent in the week to September 5 from a year earlier, after retreating 0.12 per cent in the previous week. The weakest monsoon rains in at least seven years have caused drought in 278 of India’s 626 districts, damaging crops including sugar cane, rice and oilseeds.

Finance Minister Pranab Mukherjee on Saturday said Indian policymakers need to keep borrowing costs at a record low to aid a nascent economic recovery even as inflation quickens in Asia’s third-biggest economy.

“At this point of time I cannot accept dear money policy or credit curbs as it will have an adverse impact on growth,” Mukherjee said.

The driest monsoon since 2002 may slow India’s growth in the three months to September 30 and the next quarter after posting 6.1 per cent growth in the April-June period, Mukherjee said.

India, where more than half the arable land isn’t irrigated, relies on the monsoon to produce food for its 1.2 billion people. The nation uses the wholesale-price index as the benchmark because the four consumer-price gauges in the nation don’t capture the aggregate price picture.

India’s central bank will allow the rupee to strengthen in order to reduce the cost of imports and curb inflation without raising borrowing costs, Goldman Sachs Group and HDFC Bank said.

The rupee will advance 1.8 per cent to a seven-month high of 47.3 per dollar by year-end, helping Asia’s third-largest economy to save on costs of buying crude oil and sugar, Goldman Sachs economist Tushar Poddar said.

Curbing inflation is crucial for policymakers as higher prices reduce purchasing power in a nation where about 75 per cent of the 1.2 billion people survive on less than $2 a day.

“The exchange rate is a tool available and will go some way in taming inflationary expectations,” Poddar said.

“A stronger rupee may give the central bank headroom in using other monetary policy tools more effectively.”

India has been intervening to prevent gains in its currency from hurting exporters, even as the benchmark Sensex share index has climbed 76 per cent this year on signs the economy is recovering. – Bloomberg

]]> 3900 2009-09-23 18:46:52 2009-09-24 01:46:52 open open india-data-expected-to-show-more-price-rises publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5579#comments wfw:commentRSS http://zikkir.com/business/5579/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5579 syndication_item_hash bc20185a71124213a259f7c2a9721150 Time for mergers and acquisitions http://www.ethiopianreview.com/business/3899 Thu, 24 Sep 2009 01:47:44 +0000 http://zikkir.com/business/?p=5582 New York: Never before have US companies piled up cash faster compared with interest costs than they are now, setting the stage for a surge in mergers and acquisitions.

As the economy emerges from the worst recession in 70 years, cash flow may rise from the $1.5 trillion (Dh5.5 trillion) reported by the Commerce Department for the year ended in June, according to data compiled by Credit Suisse Group AG and Bloomberg. The amount reached a record in the past 12 months amid the biggest wave of firings and central bank interest rates near zero per cent.

Cash relative to share prices will climb to the highest in at least two decades next year compared with yields on corporate bonds, the data show. The previous high in 2005 preceded the two busiest years ever for takeovers.

Business

Commodities
Time for mergers and acquisitions

Bloomberg
Published: September 21, 2009, 22:34

New York: Never before have US companies piled up cash faster compared with interest costs than they are now, setting the stage for a surge in mergers and acquisitions.

As the economy emerges from the worst recession in 70 years, cash flow may rise from the $1.5 trillion (Dh5.5 trillion) reported by the Commerce Department for the year ended in June, according to data compiled by Credit Suisse Group AG and Bloomberg. The amount reached a record in the past 12 months amid the biggest wave of firings and central bank interest rates near zero per cent.

Cash relative to share prices will climb to the highest in at least two decades next year compared with yields on corporate bonds, the data show. The previous high in 2005 preceded the two busiest years ever for takeovers.

“You’ll see a steady return to growth in the M&A market,” said Michael Boublik, the chairman of mergers and acquisitions for the Americas at New York-based Morgan Stanley. “Investors are wanting and demanding that companies start thinking about M&A to fuel growth, so therefore deals are being well accepted.”

Takeover bids by companies from Walt Disney Co. to Kraft Foods Inc. signal increasing confidence among executives that may extend the 58 per cent rally in the Standard & Poor’s 500 Index from a 12-year low on March 9. A record amount of mergers helped send the benchmark gauge to its October 2007 high.

US companies posted annualised cash flow of more than $1.5 trillion in each of the last three quarters, the most on record, Commerce Department data starting in 1947 show. With expenses shrinking, the money makes US corporations more attractive to buyers who plan to sell bonds to pay for takeovers, Credit Suisse strategists led by London-based Andrew Garthwaite wrote in a report. Pay to non-government workers has fallen for three straight quarters, dropping 6.6 per cent to $5 trillion in the April-to-June period from a year earlier, Commerce Department data show.

Yields on corporate bonds are 0.8 percentage point more than the estimated free-cash-flow yield, or income left over after capital expenses, divided by stock-market value, for US companies in MSCI indexes, data compiled by Zurich-based Credit Suisse and Bloomberg show.

Mergers climbed at least 13 per cent in the four years from 1990 until the credit crisis when the gap between rates on corporate bonds and free cash flow was less than 2 percentage points.

Rising cash levels in 2005 preceded the two biggest years in US deals, Bloomberg data show. Takeovers jumped 32 per cent in 2006 to $1.74 trillion and 13 percent in 2007 to $1.97 trillion, the data show.

“People are going to realise how resilient cash flows have been in a bad recession,” said Russell Napier, Edinburgh-based strategist at CLSA.

“Buyers usually have to finance some kind of debt and cash flow is king. We are not going back to the silly days where anyone could raise billion-dollar deals but we are going to see M&A. For businesses with strong balance sheets, this is a great time to buy.”

The cash levels also provide a margin of safety for companies should the highest unemployment rate in 26 years and lower consumer spending drag the economy back into a recession, said Richard Weiss, who oversees about $50 billion as chief investment officer at City National Bank in Beverly Hills, California. – Bloomberg

]]> 3899 2009-09-23 18:47:44 2009-09-24 01:47:44 open open time-for-mergers-and-acquisitions publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5582#comments wfw:commentRSS http://zikkir.com/business/5582/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5582 syndication_item_hash 56e1fb74156aab8dbf3a4d2b939683d1 Emerging market index slides from decade’s high as oil price weakens http://www.ethiopianreview.com/business/3898 Thu, 24 Sep 2009 01:48:32 +0000 http://zikkir.com/business/?p=5585 London: Developing-nation stocks dropped from the highest level relative to profits since 2000, while currencies slid against the dollar on falling commodities and speculation the Federal Reserve will signal a withdrawal of economic stimulus.

The MSCI Emerging Markets Index declined 0.6 per cent to 913.32 as of 8.55am in London. The 22-country benchmark traded last week at 20.6 times its companies’ reported earnings the past 12 months, the highest level since June 2000, according to data compiled by Bloomberg. South Africa’s rand dropped 1.2 per cent against the dollar for the steepest decline among developing-nation currencies, while the Russian rouble weakened 0.5 per cent.

Emerging-market stocks, bonds and currencies have surged this year as central banks including the Fed cut interest rates to record levels to revive the global economy from its worst slump.

“The economy seems to be bouncing back, there’s more and more evidence of that, but it does need to filter through to earnings”, Lothar Mentel, chief investment officer at Octopus Investments Ltd, said in an interview with Bloomberg Television in London.

“Otherwise, this rally could run out of fuel.”

Energy companies including Lukoil and Rosneft led yesterday’s retreat in equities, sending the Micex Index to the steepest slide worldwide, as oil sank below $72 a barrel. Developing-nation bonds were little changed, with the extra yield investors demand to own the debt over US Treasuries declining 1 basis point to 3.16 percentage points, according to JPMorgan Chase & Co.’s EMBI+ Index. – Bloomberg

]]> 3898 2009-09-23 18:48:32 2009-09-24 01:48:32 open open emerging-market-index-slides-from-decade%e2%80%99s-high-as-oil-price-weakens publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5585#comments wfw:commentRSS http://zikkir.com/business/5585/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5585 syndication_item_hash 3b8d96f36b292073c4bb1a422b517a1a Indications point to further upside for the markets http://www.ethiopianreview.com/business/3897 Thu, 24 Sep 2009 01:49:20 +0000 http://zikkir.com/business/?p=5588 The debate continues between those investors who see the near-term upside from markets and those who fear the longer-term problems will ultimately drag the markets lower. I see further good upside for markets. I continue to advise investors to remain fully committed to equity markets where valuations are comfortable given the very low level of global interest rates.

So far, most of the cash that has gone into financial markets has gone into bond markets. As investors catch up with the good global economic news we expect to see more interest in equity markets. Latest US mutual fund flow data shows that there has been a net redemption of $300 billion (Dh1.1 trillion) of money from US cash funds since the end of March. Nearly $270 billion of that cash has gone into bond funds and only $30 billion into equity funds. As investors start to allocate more emphatically to equities we could see a significant rise in equity market indices.

US economic data was much stronger than expected last week, adding weight to the near-term view that global financial markets will make further good progress. The US Empire State index of industrial confidence rose to 18.9 in September, much better than expected. The US Philly Fed index surged to 14.1 in September after climbing almost 12 points to 4.2 in August. The index was at 3.8 a year ago. US retail sales surged 2.7 per cent in August, well ahead of expectations. US industrial production rose 0.8 per cent month-on-month in August from an upwardly revised 1.0 per cent gain in July.

I believe the better economic news will help drive the global equity markets to new 12-month highs over the balance of the year. In the Mena region the potential upside is even greater due to the poor relative performance of markets over the last 12 months. The re-establishment of an oil price above $70 can only add further support to local sentiment.

Sterling was under pressure last week and we expect that pressure to continue with a near-term target of $1.50. The negative view on the outlook for the UK is a mixture of poor short-term factors and significant structural problems. The UK currency remains under considerable pressure, most notably against the euro (back above 0.90), but its failure to capitalise on the recent dollar weakness is also noticeable. This is a theme I have warned about frequently in recent weeks, and last week’s data went to the heart of some of sterling’s problems with M4 money supply remaining weak (+0.1 per cent m/m in August despite considerable quantitative easing by the Bank of England in recent months) on top of net public sector borrowing of £16.1 billion (Dh95.6 billion) in August, a bit better than expected but still £6.2 billion higher than the same time a year earlier. Cumulative borrowing over the 2009-10 fiscal year, stands at £65.3 billion, compared to a £26.1 billion in 2008-09. The implication of all of this is that monetary policy – and perhaps fiscal policy as well – may need to remain accommodative for much longer. I expect sterling to remain vulnerable on the crosses and it may even falter further against the dollar if its losses start to run out of steam as we expect they might.

Latest data for money flows had both good and bad news for the dollar. US Treasury capital flows data showed foreigners dumped another $97.5 billion in US assets in July, after selling a revised $56.8 billion in June (was -$31.2 billion).

However, contrary to the rumours, China was the biggest purchaser, grabbing $24.1 billion, after selling $25.1 billion in June. Further support for the dollar came from the trade data that showed the US current account deficit narrowed to $98.8 billion in the second quarter, from -$104.5 billion in in the first quarter (revised from -$101.5 billion).

Bonds remain very well behaved and corporate bond spreads continue to narrow. Retail and institutional investors have remained buyers in recent months, easily soaking up any new supply. – Special to Gulf News

]]> 3897 2009-09-23 18:49:20 2009-09-24 01:49:20 open open indications-point-to-further-upside-for-the-markets publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5588#comments wfw:commentRSS http://zikkir.com/business/5588/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5588 syndication_item_hash 3e663174d9483b537bfd0646f39bd659 Department stores help UK designers http://www.ethiopianreview.com/business/3896 Thu, 24 Sep 2009 01:50:11 +0000 http://zikkir.com/business/?p=5591 London: London fashion designers say mass retailers do not necessarily undermine their business and can actually be of help, but acknowledge that they have awakened a desire among shoppers for a more frequent refreshing of stock.

In the past luxury labels would come up with designs that months later retailers interpreted for the general public.

But with photos available online within minutes of a fashion show ending, stores such as H&M and Topshop, have cut the timespan between designs appearing on the catwalk and in stores.

“It’s not competitive, it’s complementary,” said David Cohen, managing director for the label Betty Jackson, which produces a line for department store Debenhams.

“If we were only a [high fashion] label we would be dying because we have not got the backers, we have not got the big support financially,” he said, though he acknowledged that he was sometimes frustrated by chains whom he suspected of pilfering Jackson’s ideas.

Traditionally designers created two collections a year and shipped new wares for spring and fall. But mass retailers broke with this practice, attracting shoppers by varying their stock, analysts said.

This in turn put pressure on designers to come up with more collections to satisfy orders from department stores, they said.

Richard Hyman of the consultancy Deloitte said that stores catering to people with smaller budgets were the fastest-growing segment of British retailing in the past decade and that the amount of clothing an average woman bought rose nearly tenfold.

“The need for newness is increasing. Not so many years ago, it was the luxury end that was influencing. The point of view of the designers percolated down progressively,” Hyman said.

“Not only have [high street stores] closed the gap, but they’ve set a new pace of their own.”

At Nicole Farhi Managing Director Niki Scordi said mass retail posed a challenge.

“You do have to keep refreshing. It’s forcing designers to deliver earlier and earlier, she said, explaining that deliveries of spring/summer 2010 stock would begin in November. “But it keeps it fresh as well for the customer.”

Up-and-coming Italian-born designer Maria Francesca Pepe, whose clothes are sold by Henri Bendel in New York, agreed. “I don’t think they clash,” she said.

“It doesn’t affect the person who comes to buy my product.” – Reuters

]]> 3896 2009-09-23 18:50:11 2009-09-24 01:50:11 open open department-stores-help-uk-designers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5591#comments wfw:commentRSS http://zikkir.com/business/5591/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5591 syndication_item_hash 10b1afd963bc976f156695dd9a511d05 EU builds case by detailing Intel’s strong-arm tactics http://www.ethiopianreview.com/business/3895 Thu, 24 Sep 2009 01:50:56 +0000 http://zikkir.com/business/?p=5594 Brussels: The European Union yesterday published e-mail excerpts from computer makers and Intel Corporation to show that Intel pressured chip buyers into choosing Intel over rival Advanced Micro Devices Incorporated.

Intel was hit by a record EU antitrust fine of $1.06 billion (Dh3.89 billion) last May for what the EU said was using strong-arm sales tactics such as threatening to withdraw price rebates to squeeze out AMD. The company rejects the charges and is appealing to the EU courts.

EU spokesman Jonathan Todd said the publication of the EU’s decision “gives full details of the hard facts on which the Commission’s decision was based.”

“You can see for yourselves the way in which Intel broke the law and deprived millions of European consumers of choice of the type of computer chip they wanted to have in their computers,” he told reporters.

Intel had no immediate reaction. The Santa Clara, California, company has previously defended its sales practices – which include rebates to big Intel customers – as legitimate and good for customers because it can lead to lower prices.

The company claimed in court documents published early this month that EU regulators made serious mistakes with their case.

They said regulators should check if the rebates actually shut AMD out of the market or affected sales to European customers – or if AMD’s “own shortcomings” were the cause of poor sales.

EU regulators said Dell executives were warning each other by e-mail in 2003 that buying more AMD chips could trigger retaliation from Intel that would be “severe and prolonged with impact to all lines of business.” Joining the “AMD exodus” would see Dell’s rebate stripped to zero “for at least one quarter while Intel investigates the details.”

Dell also complained to Intel in a 2004 e-mail that sticking to Intel chips “results in Dell being uncompetitive … we have slower, hotter products that cost more across the board in the enterprise with no hope of closing the performance gap for one to two years.” – AP

]]> 3895 2009-09-23 18:50:56 2009-09-24 01:50:56 open open eu-builds-case-by-detailing-intel%e2%80%99s-strong-arm-tactics publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5594#comments wfw:commentRSS http://zikkir.com/business/5594/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5594 syndication_item_hash 988f89e7daa84b590bd99823b526ddb5 Goldman seeks to buy Geely bonds http://www.ethiopianreview.com/business/3894 Thu, 24 Sep 2009 01:51:39 +0000 http://zikkir.com/business/?p=5597 Shanghai/Hong Kong: An investment arm of Goldman Sachs is in talks with Chinese carmaker Geely Automotive, which has been linked with both Volvo and Opel, to buy about $250 million (Dh917 million) of the company’s convertible bonds and warrants, two sources said.

“The two sides have basically agreed on the investment in Geely already, but have yet to work out some technical details,” one source with direct knowledge of the deal told Reuters.

Geely, China’s 10th largest vehicle maker, said this month its parent was considering a bid for Ford’s Swedish car brand Volvo with a local government-backed investment firm.

A successful deal would boost Geely’s profile and give it access to Volvo technologies which it needs to upgrade its cars.

A source told Reuters last week that Geely’s parent also had approached Canadian auto parts maker Magna International about a potential production partnership on Opel. General Motors agreed earlier this month to sell a 55 per cent stake in carmaker Opel to a group led by Magna.

Trade in Geely shares was suspended last week as the company said it was considering a convertible bond and warrants issue, though Geely Executive Director Lawrence Ang told Reuters the issue was not related to Volvo.

Geely would use the proceeds from the Goldman deal to boost its production capacity – including adding 150,000 units a year in the central province of Hunan, which can now produce 50,000 units, one of the sources said.

The sources declined to be named as the talks were not yet public. Geely and Goldman officials declined to comment.

Geely had said previously it would buy three new plants from its parent, with a combined annual capacity of 165,000 units, once construction was completed.

Car sales in China, the world’s largest auto market, have grown sharply, boosted by Beijing’s policy initiatives, including sales tax cuts on small cars and subsidies for rural buyers.

Automakers from GM to Volkswagen are building new plant or setting up new China joint ventures.

Geely, which competes against Chery Automobile and other local brands, has current annual production capacity for 370,000 cars, according to data provided by a Geely representative.

The carmaker had said previously it aimed to add capacity of 315,000 in phases, including taking over its parent’s three facilities. – Reuters

]]> 3894 2009-09-23 18:51:39 2009-09-24 01:51:39 open open goldman-seeks-to-buy-geely-bonds publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5597#comments wfw:commentRSS http://zikkir.com/business/5597/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5597 syndication_item_hash 2696db167c34a0e25cf378ffc109fa3a Stretching out reduced salaries http://www.ethiopianreview.com/business/3893 Thu, 24 Sep 2009 01:53:23 +0000 http://zikkir.com/business/?p=5600 When you hear about redundancies in the media, you hear about numbers. When it starts to happen in your own workplace, those numbers take on human faces.

Just how do you hold on to valued team members when a reduced salary budget needs to be spread more thinly? Logically, there are only two ways, neither of them being immediately appealing.

One of them is the obvious switch to a shortened week on reduced pay. Most organisations, with a choice, will not go for this one, though some staff may welcome the extra days off, and others may settle for it purely through inertia.

The alternative is to continue staff-levels on the existing basis, but agree to defer part of the salary until the business has recovered. This will appeal to the more supportive employees, as it reflects a stake in the company. By agreeing to it, they are effectively confirming their faith in the product and management.

In the UK, we would call this the ‘least worst’ option. It avoids both the psychological trauma of unemployment and the humiliation of the outright pay-cut. And they enable the team to stay together, perhaps more conscious of their shared goals than they would be otherwise.

When I first worked in Dubai, long before there was any recession, I had to counsel the MD of a small workshop that made ornamental gilt buckles for shoes and handbags.

For years, sales had gone so smoothly for the firm that Khalil could not imagine having to make redundancies. But then all the bad luck arrived at once – two leatherware groups relocating overseas and his newest client suffering a near-fatal stroke at only thirty-three years of age.

Individually, he suggested to his staff that they could avoid redundancy by settling for reduced earnings. But he was dreading the reactions of two of the women benchworkers who always looked like trouble – Myisha, an aggressively negative type, and the shy, meek Tehani, who was firmly under her influence.

Sure enough, Myisha sullenly declared that she would settle for a four-day week, rather than be paid for the fifth day in ‘company stock’, as she put it. But Tehani unexpectedly voted the other way, for possible deferred earnings, though she could not calculate exactly what that would mean.

Working without Myisha for just one day a week changed Tehani decisively. She was no longer under pressure to deliver only the minimum, in line with Myisha’s obstructionist attitude. Or perhaps the very act of exercising her individuality had emancipated her. For the first time, she actually felt that her efforts might impact on the success of the team, and up on her own earnings. She began to treat each job as a mission to be rendered to the highest possible standard. Before long, she found herself working on their special orders, a most unexpected outcome of a redundancy crisis.
The facts: Averting the axe

- Managers must try to redistribute the reduced salary budget
- Short-time work will tend to attract only the least employable
- Agreeing to accept deferred pay is a more positive sign of commitment Your comments

I totally disagree with the second option. I have seen situations similar to this and employees may be the ultimate losers in the worst situations. In cases of liquidation, employees may suffer a lot to recover their outstandings from companies who could not revive back to normal. – Special to Gulf News

]]> 3893 2009-09-23 18:53:23 2009-09-24 01:53:23 open open stretching-out-reduced-salaries publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5600#comments wfw:commentRSS http://zikkir.com/business/5600/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5600 syndication_item_hash 730f581c47294b034b6f1c876fac4901 JATA travel fair has strong UAE presence http://www.ethiopianreview.com/business/3892 Thu, 24 Sep 2009 01:54:14 +0000 http://zikkir.com/business/?p=5603 Tokyo: The JATA World Travel Fair has seen strong participation from the UAE which was represented at the largest international travel fairs in Asia by the Abu Dhabi Tourism Authority (ADTA), Dubai Department of Tourism and Commerce Marketing (DTCM), Abu Dhabi’s Etihad Airways and Dubai’s Emirates airline.

JATA World Travel Fair was organised by the World Tourism Congress between September 17-20.

A large turnout of over 110,000 people visited the UAE stands which highlighted the country as a world-class leisure and business and tourism destination.

“Now is the time to travel to Dubai” was the theme of DTCM which also organised debates and meetings with industry experts as part of an extensive campaign to promote the emirate as a top leisure destination with encouraging prices.

UAE Ambassador to Japan Saeed Ali Al Nuwais hailed the UAE’s participation in the event and its efforts to further bolster relations with Japan.

He also said the routes from Abu Dhabi and Dubai to Narita, Japan, which will be inaugurated early next year, are set to have a positive economic, social and cultural effect on the relations between the two countries.

JATA World Travel Fair showcased other Arab countries such as Syria, Qatar, Tunisia and Egypt and served to stimulate Japanese travel demand and launch new travel trends. – WAM

]]> 3892 2009-09-23 18:54:14 2009-09-24 01:54:14 open open jata-travel-fair-has-strong-uae-presence publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5603#comments wfw:commentRSS http://zikkir.com/business/5603/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5603 syndication_item_hash 2fb83f167e91334d3826f0ac0326d22f World stocks dip on policy fears http://www.ethiopianreview.com/business/3891 Thu, 24 Sep 2009 01:56:10 +0000 http://zikkir.com/business/?p=5606 London: World stocks on Monday retreated further from last week’s 11-month high as lower commodity prices and caution ahead of a Federal Reserve meeting and G20 summit prompted investors to trim risky trades.

Leaders of the Group of 20 meet on Thursday and Friday in Pittsburgh and US President Barack Obama said on Sunday he would push world leaders for a reshaping of the global economy in response to the crisis.

World stocks have risen over 26 per cent this year, recouping more than half of last year’s losses, underpinned by repeated pledges by G20 leaders and finance chiefs to keep emergency support for the economy in place.

“We are still quite bullish,” said Nick Nelson, European equity strategist at UBS.

“The market might look slightly overbought near term, but the economy is definitely improving, corporate profits are definitely improving, interest rates are staying low, valuations aren’t expensive.”

MSCI world equity index fell 0.5 per cent, while the FTSEurofirst 300 index lost 0.6 per cent.

Emerging stocks dropped more than 0.5 per cent.

Tomorrow the Fed is expected to keep its benchmark Fed Funds rate unchanged at 0.25 per cent, and investors are looking for signs of how quickly it might remove its extraordinary programmes to revive lending and hiring. While any signal that the Fed might start unwinding its loose monetary policy shows it is acknowledging the recovery, it could be negative for risky assets as it could fan speculation of an interest rate hike.

The Fed has pledged to buy up to $1.45 trillion (Dh5.32 trillion) of mortgage-backed securities and debt issued by government sponsored Fannie Mae and Freddie Mac by end-2009.

Sterling fell to a five-month low of 90.79 pence per euro after the Bank of England said the currency’s long-run sustainable exchange rate may have fallen due to an increased focus on Britain’s economic imbalances following the global credit crisis. – Reuters

]]> 3891 2009-09-23 18:56:10 2009-09-24 01:56:10 open open world-stocks-dip-on-policy-fears publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5606#comments wfw:commentRSS http://zikkir.com/business/5606/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5606 syndication_item_hash 1abdeae6be8fc5499705df6b6a89594b Gold falls as IMF approves bullion sales http://www.ethiopianreview.com/business/3890 Thu, 24 Sep 2009 01:57:37 +0000 http://zikkir.com/business/?p=5609 London: Gold fell below $1,000 (Dh3,670) an ounce in London on Monday on a rebound by the dollar that cut demand for precious metals as an alternative investment and on the International Monetary Fund’s (IMF) approval of bullion sales.

The IMF’s executive board on September 18 approved sales of 403.3 metric tons valued at about $13 billion, pledging to avoid disrupting the market with disposals and saying it would “stand ready to sell gold directly to central banks.” The US Dollar Index gained for a second day on speculation US policy makers will this week signal they may withdraw economic stimulus measures.

“There is a little bit of stabilisation in the dollar,” Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said by phone. While “the IMF news is also negative for gold,” he said, “it’s not a new discussion and should not prevent gold rising to new highs.”

Immediate-delivery bullion lost as much as $11.63, or 1.2 per cent, to $995.97 an ounce and traded at $1,000.20 by 9.58am local time. The metal, which fell below $1,000 for the first time since September 15, added 0.2 per cent last week, a fifth gain. December gold futures were 0.9 per cent lower at $1,001.50 an ounce on the New York Mercantile Exchange’s Comex division.

The IMF board last year endorsed selling the amount, about one-eighth of its total gold stockpile, as part of a plan to shore up its finances. The sales can occur any time and will be spread over a number of years and come in small amounts, it said.

Selling to central banks, which have yet to express an interest, would be faster, the IMF said.

Gold has climbed 13 per cent in London this year, while the dollar index, a six-currency gauge of the currency’s strength, has slid 5.6 per cent. The measure slipped as much as 0.7 per cent yesterday.
Market value: China considers buying gold

China is considering buying gold being offered for sale by the International Monetary Fund, Market News International said on Monday, citing two unnamed government sources, but the report could not immediately be confirmed.

“China will consider buying if the price is right and the return is relatively high,” MNI quoted one of the government sources as saying. Gold rebounded to $1,003.45 after the report.

That would put the market value of the 403.3 tonnes on offer from the IMF at close to $13 billion. – Reuters

]]> 3890 2009-09-23 18:57:37 2009-09-24 01:57:37 open open gold-falls-as-imf-approves-bullion-sales publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5609#comments wfw:commentRSS http://zikkir.com/business/5609/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5609 syndication_item_hash e55e6cead681e587ca60808443b8cffe Kuwait, Vietnam expand oil links http://www.ethiopianreview.com/business/3889 Thu, 24 Sep 2009 01:59:47 +0000 http://zikkir.com/business/?p=5612 Hanoi: Kuwait Petroleum International and Vietnam Oil & Gas Group, which are building Vietnam’s second oil refinery, plan to expand cooperation in exploring for crude and trading fuel, the Vietnamese state-owned company said on Monday.

Kuwait Oil Minister Shaikh Ahmad Al Abdullah Al Sabah was to meet Vietnamese Prime Minister Nguyen Tan Dung and President Nguyen Minh Triet in Hanoi on Monday.

Earlier, he held talks with Vietnam Oil & Gas, known as PetroVietnam, “to discuss possibilities to boost cooperation”, PetroVietnam said in a statement.

Vietnam last year started building its second oil refinery at Nghi Son in the northern Thanh Hoa province. Kuwait Petroleum, which has a 35.1 per cent stake in the $6 billion (Dh22 billion) refinery, is expected to provide crude for the plant, according to PetroVietnam, which holds 25.1 per cent. The remaining stakes are held by two Japanese companies.

“PetroVietnam is willing to work with Kuwaiti partners in areas including oil exploration, processing and trading in petroleum products, as well as power generation,” PetroVietnam Chairman Dinh La Thang said.

Kuwait’s Al Sabah will also meet with local governments in Thanh Hoa province “to accelerate the Nghi Son project”, according to the statement.

Kuwait Petroleum and PetroVietnam also plan to sign an agreement to work at oil block 51 offshore Vietnam, the statement said. – Bloomberg

]]> 3889 2009-09-23 18:59:47 2009-09-24 01:59:47 open open kuwait-vietnam-expand-oil-links publish 0 0 post syndication_permalink http://zikkir.com/business/5612 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/5612/feed rss:comments http://zikkir.com/business/5612#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash eb5d3b10378503bdaf7968e324ca0aa7 Citigroup’s Tom King steps down from post http://www.ethiopianreview.com/business/3915 Thu, 24 Sep 2009 03:32:26 +0000 http://zikkir.com/business/5615 Tom King, Citigroup’s head of banking for Europe, the Middle East and Africa, stepped down after 20 years at the company, according to an internal memo.

King, 48, left the bank “to pursue other interests,” New York-based Citigroup said in the memo yesterday. He will be replaced on an interim basis by David Wormsley, currently the chairman of UK banking and broking.

King, who was based in London, may be examining offers, including one from the mergers and advisory unit of Barclays, said two people familiar with the matter who declined to be identified. A spokesman for Barclays Capital, the London-based company’s investment-banking arm, declined to comment yesterday.

Barclays Capital has hired senior M&A bankers who worked at Citigroup and Morgan Stanley in London to expand its European advisory business. The firm named Mark Warham, a former Morgan Stanley banker, and Citigroup’s Matthew Ponsonby co-heads of European M&A in May. This year, former Citigroup executives Antonio Cacorino and Fredrick Chapey formed a fixed-income finance firm in New York and London.

As head of banking for Europe, the Middle East and Africa, King ran the investment banking and corporate banking activities for Citigroup. In previous roles, King oversaw global mergers and acquisitions and investment banking in Europe.

Citigroup, the US bank that has taken more taxpayer money than any other, is currently the top-ranked adviser on mergers and acquisitions in Europe this year, working on about $100 billion (Dh367 billion) of deals, according to data compiled by Bloomberg. Barclays Capital ranks 13th, the data show.

Citigroup is a lead financial adviser to BlackRock on its plan to buy Barclays’s investment unit for about $13.5 billion, announced in June.

On European equity and equity-linked underwriting, Citigroup ranks 10th this year, the data show.

Citigroup said last November it would cut more than 50,000 jobs and lower expenses by 20 per cent from its peak.

The bank is also among seven bailed-out companies that submitted compensation plans for its top executives to the Obama administration’s special master on pay, Kenneth Feinberg. He will have authority to regulate pay for 175 executives at seven companies that received “exceptional” government help.

- Gulf News

]]> 3915 2009-09-23 20:32:26 2009-09-24 03:32:26 open open citigroup%e2%80%99s-tom-king-steps-down-from-post publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5615#comments wfw:commentRSS http://zikkir.com/business/5615/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5615 syndication_item_hash 96d26fe0511ce9138e7091ef8e9d485a Aresco finishes $140m Sinai clinker project http://www.ethiopianreview.com/business/3914 Thu, 24 Sep 2009 03:57:34 +0000 http://zikkir.com/business/?p=5617 ASEC for Manufacturing and Industrial Projects (Aresco), a turnkey contractor serving the cement, energy, petrochemical, petroleum and general industrial sectors, announced that it has completed construction of a second production line at Sinai Grey Cement’s production facility in Al Arish, Sinai.

Aresco, in conjunction with nominated supplier FLSmidth, completed the $140 million (Dh513.8 million) fast-tracked project on budget in just 25 months, well below the industry average of 32 months for projects of this kind.

The production line is now running at full capacity.

Aresco’s optimised equipment design allows Sinai Grey’s second production line to surpass the facility’s expected output of 4,200 tonnes per day of clinker with heavy fuel oil.

“Aresco’s work on Sinai Grey’s second production line is an achievement. It was a fast-track, turnkey contract that stayed on budget and today produces above the anticipated daily clinker output,” said Paul Donohue, Aresco’s Chief Executive Officer.

“At Aresco, we have invested a great deal in building a team capable of executing projects at this level. From engineers to project managers, we now have a team that allows us to expand our service offerings into new industries and new regional markets.”

Aresco, a subsidiary of ASEC Holding, Citadel Capital’s platform company in the industrial services and contracting sector, announced last March a comprehensive restructuring plan as the company moves to improve its operating efficiency, build additional capabilities and grow its market share in Egypt and the region.

The company’s project management team has placed particular focus on achieving project schedules and delivery of high-quality output.

Aresco is currently working on cement and non-cement construction and steel fabrication projects spanning from Algeria to Egypt and Sudan.

- Gulf News

]]> 3914 2009-09-23 20:57:34 2009-09-24 03:57:34 open open aresco-finishes-140m-sinai-clinker-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5617#comments wfw:commentRSS http://zikkir.com/business/5617/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5617 syndication_item_hash 54fa09e246af629fa9c5207541674f92 Dell to buy Perot Systems for $3.9b http://www.ethiopianreview.com/business/3913 Thu, 24 Sep 2009 03:58:45 +0000 http://zikkir.com/business/?p=5619 Dell agreed to buy Perot Systems Corp for $3.9 billion (Dh14.3 billion), undertaking its biggest purchase ever to compete with International Business Machines Corp and Hewlett-Packard Co in computer services.

Dell, the second-biggest maker of personal computers, offered $30 a share in cash, about 68 per cent more than Perot’s closing price September 18. The acquisition probably will boost profit in fiscal 2012, Round Rock, Texas-based Dell said in a statement yesterday.

Chief Executive Officer Michael Dell is pushing into computer services as consumers and companies curb PC purchases to cope with the economic slump. Larger services units helped IBM and Hewlett-Packard withstand the recession better than Dell, whose sales slumped 22 per cent last quarter. The new services business would have annual sales of about $8 billion.

“This significantly expands Dell’s enterprise-solutions capabilities,” CEO Dell said in the statement. “The acquisition makes such great sense because of the obvious ways our businesses complement each other.”

Once the transaction is complete, Perot Systems, based in Plano, Texas, will become Dell’s services unit. The purchase price is more than twice what Dell paid last year for EqualLogic Inc, which was the computer maker’s biggest acquisition until now.

Perot Systems jumped as much as $11.89, or 66 per cent, to $29.80 in trading before US exchanges opened.

- Gulf News

]]> 3913 2009-09-23 20:58:45 2009-09-24 03:58:45 open open dell-to-buy-perot-systems-for-3-9b publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5619#comments wfw:commentRSS http://zikkir.com/business/5619/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5619 syndication_item_hash 3547c9ae82f711182cee661e5f8edaf4 Ahmadinejad orders forex reserves shift to euro http://www.ethiopianreview.com/business/3912 Thu, 24 Sep 2009 03:59:37 +0000 http://zikkir.com/business/5621 Iranian President Mahmoud Ahmadinejad has ordered Iran’s foreign currency reserves, currently in US dollars, to be held in euros, Press TV reported.

The order was issued on September 12 following a decision by the trustees of the country’s foreign reserves, the state-run news channel said on its website.

The Central Bank’s Vice Governor for Foreign Exchange Affairs, Hamid Borhani, could not immediately be reached to comment on the report in Tehran.

The US dollar has declined against the euro in recent months amid the global financial crisis and the drop in assets from homes to equities.

Political tension between Iran, which has the second-largest oil reserves after Saudi Arabia, and western countries has increased due to suspicions Tehran is trying to develop nuclear weapons and after it quashed street protests following June’s presidential election.

Iran’s economy is suffering from the decline in oil prices to about $71.58 a barrel from a peak of $147 in July of last year. The world’s fourth-largest oil producer needs oil prices of $85 to $90 to stop running budget deficits, the International Monetary Fund says.

Iran’s inflation dropped to 14 per cent in the Iranian month of Tir ending July 22, the Central Bank said last month. Inflation slowed from 14.5 per cent in the previous months.

In the last two years Syria and Kuwait de-pegged their currencies from dollar to curb rising import costs and inflation.

- Gulf News

]]> 3912 2009-09-23 20:59:37 2009-09-24 03:59:37 open open ahmadinejad-orders-forex-reserves-shift-to-euro publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5621#comments wfw:commentRSS http://zikkir.com/business/5621/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5621 syndication_item_hash 3b3cd3a6264049600a8084e1040edc2e RBS studying 3b pounds rights issue http://www.ethiopianreview.com/business/3911 Thu, 24 Sep 2009 04:00:36 +0000 http://zikkir.com/business/?p=5622 Royal Bank of Scotland Group, Britain’s biggest government-controlled bank, is in talks with shareholders to gauge the appetite for a potential rights offering, two people familiar with the talks said.

The bank held the discussions last week, said the sources, who declined to be identified because the negotiations are still at an early stage. RBS may raise between £3 billion (Dh17.9 billion) and £5 billion, one of the people said.

“I’d be surprised if they can achieve it. It’s ambitious,” said Julian Chillingworth, chief investment officer at London-based Rathbone Brothers. “There is concern that investors may be faced with quite a lot of cash calls in the sector. I’m not sure RBS shareholders will be that keen to subscribe.”

The government’s stake in the Edinburgh-based lender is set to increase to more than 80 per cent under the terms of the Asset Protection Scheme, the UK’s toxic asset insurance programme. RBS chief executive officer Stephen Hester is seeking to limit that increase by raising cash from investors, one of the two sources said.

RBS raised £12.3 billion in a rights offer in June 2008 following its purchase of ABN Amro Holding NV by former CEO Fred Goodwin. That acquisition led the bank to report a £24.1 billion loss for 2008, the biggest by a UK company, after writedowns surged. Goodwin was ousted last year as the government provided a £20 billion bailout for RBS.

A spokeswoman for the bank declined to comment on the discussions.

RBS has climbed 9.9 per cent in London trading over the past month, valuing the lender at about £30 billion. The stock fell 5.4 per cent to 53.25 pence at 11.30 am on Monday. The government paid an average of 50.5 pence a share for its stake.

RBS said in February it would sell as much as £19 billion of non-voting B shares to the government in return for placing £316 billion of toxic assets into the UK insurance plan. That sale would boost the government’s stake from its current 70 per cent.

“It’s not surprising that RBS want to raise capital, as they don’t want to become more and more beholden to the government,” said Colin Morton, an asset manager at Rensburg Fund Management in Leeds. “RBS remains a very high-risk investment, as I’m very concerned about the economy over the next six to 18 months.”

- Gulf News

]]> 3911 2009-09-23 21:00:36 2009-09-24 04:00:36 open open rbs-studying-3b-pounds-rights-issue publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5622#comments wfw:commentRSS http://zikkir.com/business/5622/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5622 syndication_item_hash abb858c2d76337de9a8092f96d6eaf3c Bank of America must divulge Merrill details http://www.ethiopianreview.com/business/3910 Thu, 24 Sep 2009 04:02:00 +0000 http://zikkir.com/business/5624 A House of Representatives panel has told Bank of America Corp that it cannot use attorney-client privilege to withhold from Congress details on its purchase of Merrill Lynch, The New York Times reported on Monday.

The chairman of the House Committee on Oversight and Government Reform, Representative Edolphus Towns, gave the bank a deadline of noon yesterday to provide answers and relevant legal documents about the merger, the Times said.

The bank late on Saturday asked Towns for a delay until after today. But a spokesman for Towns said on Sunday that he was sticking to the deadline, the newspaper reported.

Compliance with the panel’s request would force Bank of America to reveal information that would affect a range of other investigations into the merger, according to the paper.

In a sternly worded letter on Friday, Towns, a Democrat, said the bank must divulge when it became aware of the enormous losses at Merrill last year, when it received a commitment from the federal government for a second round of bailout money and what legal advice its management received about whether it had to disclose those developments to the bank’s shareholders, the Times reported.

Bank of America has been subject to a wave of civil litigation since it purchased Merrill Lynch on January 1.

The Securities and Exchange Commission and the attorneys general of New York and North Carolina are investigating whether Bank of America failed to disclose to shareholders Merrill Lynch’s operating losses and bonus payments before the merger was approved.

The Charlotte Observer reported on Friday that the US Department of Justice and Federal Bureau of Investigation were conducting a criminal probe into Bank of America’s purchase of Merrill Lynch.

Scott Silvestri, a Bank of America spokesman, declined to confirm the newspaper report. A spokeswoman for the Justice Department declined to comment. An FBI spokeswoman declined comment and would neither confirm nor deny that an investigation was underway.

- Gulf News

]]> 3910 2009-09-23 21:02:00 2009-09-24 04:02:00 open open bank-of-america-must-divulge-merrill-details publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5624#comments wfw:commentRSS http://zikkir.com/business/5624/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5624 syndication_item_hash 6463f9ed45e8a758145fe47da607df11 Citi explores sale of government stake http://www.ethiopianreview.com/business/3941 Thu, 24 Sep 2009 09:43:25 +0000 http://zikkir.com/business/?p=5628 Citigroup has asked its investment bankers to study options to facilitate a sale of the government’s 34 per cent stake in the troubled financial giant.

People close to the situation said Citi’s bankers were looking at ways the company could raise capital through a stock offering as well as enabling the government to sell part of its stake, which was acquired as part of a capital injection to support the bank.

Citi declined to comment and people familiar with the matter said the plans were at an early stage. According to bankers, the US Treasury, which has the final say on when and how the stake is sold, has not yet been contacted.

The US authorities received more than 7bn shares in the troubled financial group at $3.25 each, after converting $25bn of preferred stock into common equity at the end of July. The share exchange boosted Citi’s ratio of tangible common equity to assets, providing it with a greater buffer of loss-absorbing capital.

The stock closed on Monday at $4.52, giving the government a paper profit of about $10bn. Some Wall Street analysts have begun agitating for a sale. “Each penny increase in the stock price produces a $76m unrealised gain,” wrote Glenn Schorr of UBS last month.

Tim Geithner, US Treasury secretary, announced last week that it was time to plan winding down the government’s intervention in the financial sector. A successful stock offering would open the door for private investors to come in and give the government a profitable exit.

But as with the Treasury’s stakes in companies such as General Motors, he is keen to balance the benefit of ceasing intervention with a desire to secure a good return for taxpayers.

Dick Parsons, chairman of Citigroup, and Mr Geithner were both in New York on Monday to watch President Barack Obama use the anniversary of Lehman Brothers’ collapse to press lawmakers to reform regulation and bankers to rein in bonuses and offer shareholders a “say on pay”. – FT

]]> 3941 2009-09-24 02:43:25 2009-09-24 09:43:25 open open citi-explores-sale-of-government-stake publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5628#comments wfw:commentRSS http://zikkir.com/business/5628/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5628 syndication_item_hash c45c27b39c5431c70789d50e12b05f37 Wells Fargo urges US to boost mortgage market http://www.ethiopianreview.com/business/3940 Thu, 24 Sep 2009 09:44:21 +0000 http://zikkir.com/business/?p=5630 The US government should help revive the moribund market for big mortgages by getting Fannie Mae and Freddie Mac to buy large home loans from banks, the chief executive of the lender Wells Fargo urged on Tuesday.

In an interview with the Financial Times, John Stumpf, whose bank originates a quarter of all US mortgages, called for an increase in the size of loans purchased by Fannie and Freddie, the troubled finance groups controlled by the authorities.

Mr Stumpf said such a move would help reduce the interest rates charged by banks on so-called “jumbo” mortgages and revive a market for higher-end housing that has been devastated by the credit crunch.

Fannie and Freddie can currently buy or guarantee mortgages worth up to $417,000. The stimulus plan approved last year set the companies higher limits of up to $729,750 in certain high-cost areas such as California until the end of 2009. Congress has to approve any extension of those higher limits.

“I would like to see Fannie and Freddie increase the size of mortgages [they buy],” Mr Stumpf said. “It would be good for housing and good for the economy”.

Mr Stumpf’s proposal underlines banks’ desire to re-enter lucrative markets that have nearly disappeared during the crisis. But the idea drew criticism from some in Congress, including Darrell Issa, the lead Republican on the House oversight committee, and Scott Garrett, a representative on the House financial services committee. “This would be potentially disastrous since it would further prop up the housing market with taxpayer support,” said Mr Issa.

During the credit boom, jumbo loans were typically funded via the securitisation markets, where individual mortgages were packaged into securities. But demand for such securities has all but dried up.

Jumbo lending dropped to $98bn in 2008 – less than a third of the $348bn of jumbo loans made in 2007, according to Inside Mortgage Finance – as mortgage companies tightened standards and investors retreated. The market has seen little recovery this year, as banks have been cautious since they have to keep new jumbo loans on their balance sheets.

The drop in financing has pushed jumbo mortgage rates as much as 2 per cent higher than rates for mortgages that conform to Fannie and Freddie’s limits, according to Bankrate.com. This has made them attractive for banks, but the availability of loans has remained limited by the banks’ balance sheet capacity.

The Mortgage Bankers Association is lobbying to make the temporary conforming jumbo loan limits permanent, to allow Fannie and Freddie to continue to buy or guarantee mortgages up to $729,750 in high cost areas.

San Francisco-based Wells has made about $500bn in loans to consumers and companies over the past nine months, Mr Stumpf said, but added that only a small portion of those had been “jumbo” mortgages.

Freddie declined to comment. Fannie could not be reached.

In the interview, Mr Stumpf sounded a note of caution on the speed of the economic recovery in the US, saying that the rebound on Main Street might lag the revival of capital markets and Wall Street.

“We still have too many unemployed people and I don’t believe in a jobless recovery, he said noting that losses on credit card and other consumer loans are closely related to unemployment.

He said the integration of Wachovia, the troubled lender acquired by Wells at the height of the crisis last year, was proceeding as planned.

Mr Stumpf stressed that takeover would give the combined group an unrivalled national footprint by marrying Wells’ West Coast strength with Wachovia’s strongholds in the east and southeast of the US.

Mr Stumpf said the complete integration of the two banks’ systems and branches would take more than two years. The deal will enable Wells to apply its strategy of cross-selling products such as mortgages, credit cards and auto loans to Wachovia customers, he added.

Mr Stumpf indicated once again that Wells intended to repay the $25bn in bail-out funds it received from the government during the crisis without having to issue new capital, despite recent market rumours to the contrary.

Wells’ stance contrasts with that of Citigroup, which is believed to be in early talks with the US Treasury over a capital raise that would enable the authorities to sell part of their 34 per cent stake in the bank. The government does not own a stake in Wells. – FT

]]> 3940 2009-09-24 02:44:21 2009-09-24 09:44:21 open open wells-fargo-urges-us-to-boost-mortgage-market publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5630#comments wfw:commentRSS http://zikkir.com/business/5630/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5630 syndication_item_hash d527fceb46214d7bdce865124daf3a80 The very model of a modern central banker http://www.ethiopianreview.com/business/3939 Thu, 24 Sep 2009 09:47:44 +0000 http://zikkir.com/business/?p=5633 An academic background stood the chairman of the Federal Reserve in good stead during his first term. Political skills may be more important in his second

hands

AS THE financial crisis gathered force in August 2007, Jim Cramer, a hyperbolic market commentator on cable television, hurled the worst epithet he could muster at the chairman of the Federal Reserve: “Bernanke is being an academic. It is no time to be an academic!” By August 25th this year, when Barack Obama nominated Ben Bernanke to a second, four-year term, what had once been an epithet had become a source of strength. “As an expert on the causes of the Great Depression, I’m sure Ben never imagined that he would be part of a team responsible for preventing another,” Mr Obama said. “But because of his background, his temperament, his courage, and his creativity, that’s exactly what he has helped to achieve.”

It is too soon to declare that the threat of depression has passed, but not to conclude that Mr Bernanke’s academic background, which seemed a liability at the start of his tenure, has proved his greatest asset. His so far successful handling of the crisis reflects not just what he learned about the Depression, but what other economists have learned from studying crises—as demonstrated by the similar strategies other central banks have taken. A political neophyte compared with his predecessor, Alan Greenspan, Mr Bernanke made that a strength when he pleaded with politicians to bail out the system. “I’m a college professor,” he told Congress as it debated the $700 billion Troubled Asset Relief Programme. “I never worked on Wall Street… My interest is solely for the strength and the recovery of the US economy.”

Difficult as Mr Bernanke’s first term was, his next will be more politically treacherous. The recovery now under way will be feeble: deflation will remain a bigger threat than inflation for at least a year. Yet early signs of growth will generate pressure to tighten monetary policy which Mr Bernanke must beat back without seeming soft on inflation.

Once the recovery is entrenched and unemployment is falling, he will have to raise interest rates and shrink the Fed’s balance-sheet, inviting attack from Congress and perhaps Mr Obama. He will also have to create a new monetary regime to replace the single-minded focus on low inflation, says David Blanchflower, who recently quit the Bank of England’s monetary policy committee. The Fed may have to intervene in markets more to prevent new bubbles. But that, like tightening monetary policy, is unpopular and the Fed is already in bad odour with the public (see chart).

chart

Still, Mr Bernanke is probably up to these challenges. Mr Obama has strengthened him immensely, by nominating the 55-year-old Republican long before his term expires rather than leaving him dangling or replacing him with a Democrat. More important, Mr Bernanke has shown he can adapt academic theory to the political reality in which the Fed operates.

This was not a foregone conclusion. Mr Bernanke was appointed to the Fed in 2006 largely on his academic credentials. As a professor at Princeton University, then a Fed governor under Mr Greenspan and briefly an adviser to George Bush, he helped build the edifice of macroeconomic orthodoxy that has proven so badly flawed. He argued that central banks performed best by concentrating solely on inflation, preferably with a target. To an even greater degree than Mr Greenspan, he was sure that using monetary policy to try to stop asset-price bubbles would do more harm than good.

To a great extent this reflected his and most macroeconomists’ assumption that markets were, most of the time, rational and efficient. In September 2005, he declared: “Recent house price increases are attributable mainly to economic fundamentals.” Jeremy Grantham, a fund manager, has said Mr Bernanke’s faith in efficient markets was so strong that he could not see a once-in-a-century bubble in home prices because such a bubble wasn’t supposed to be possible. Mr Greenspan is blamed for planting the seeds of the crisis by holding interest rates low after the 2001 recession, but Mr Bernanke provided ample intellectual cover for the strategy. As late as August 7th 2007, days before the crisis erupted, the Fed said it was more worried about inflation than about a weakening economy.

But once the gravity of the crisis became clear, Mr Bernanke knew what he had to do. Financial institutions, unsure who was fatally exposed to toxic securities, began to hoard liquidity (cash and super-safe government debt) and withhold credit from each other. As liquidity dried up, some institutions failed and others reduced their lending to businesses and households, starving the broader economy. When everyone wants liquidity, only the central bank can supply more. Over the next 20 months, Mr Bernanke employed ever more creative means to inject liquidity into the financial markets. He also used conventional monetary policy, eventually cutting short-term interest rates close to zero and attempting to lower long-term interest rates by purchasing bonds. But the Fed needed a functioning financial system to transmit the benefits of such actions to the broader economy.

He was not the only central banker to come to this realisation, or even the first. When the crisis first broke in August 2007, the European Central Bank (ECB) was more aggressive in its initial response, providing at first unlimited cash to euro-zone banks. Similarly, the Fed’s decision to throw its weight behind Bear Stearns, American International Group and Citigroup, had its analogues abroad: the Bank of England provided a lifeline for Northern Rock and the Swiss National Bank later backstopped UBS. All central bankers, not just those who are authorities on the Depression, know that in a crisis, the failure of a single financial firm can trigger contagion and the collapse of its counterparties, endangering the entire financial system and economy.

But Mr Bernanke not only acted more quickly and forcefully, he faced unique constraints. Almost by accident the ECB ended up with a modern toolkit: it can lend to far more counterparties against far more types of collateral than the Fed. Europe’s economy remains bank-dominated. America’s once was, too, and the Fed’s tools reflect that: it can ordinarily lend only to banks from its discount window. But America’s economy is now dominated by a shadow banking system of investment banks, financial firms and investment funds. Mr Bernanke’s staff devoted much of their creativity to overcoming the legal and technical barriers of the Fed’s 20th-century charter and, when they hit the limit, convincing Congress and the administration to pick up the baton.

Professional economists have applauded Mr Bernanke’s actions, but the public has not. The Fed’s approval rating stands at just 30%, lower than any other federal agency and down from 53% in 2003, according to Gallup. Partly this is because the economy has faced a devastating recession that the Fed was meant to prevent. But it also reflects discomfort with the Fed’s meddling in private markets.

Central bankers expect to be unpopular, but the Fed is uniquely vulnerable now. A bill in Congress would subject its most sensitive decisions to legislators’ scrutiny, while the administration has proposed expanding its regulatory oversight to contain future crises. This has thrust Mr Bernanke into the political arena: he appears to be at odds with Tim Geithner, the treasury secretary and a former colleague at the Fed, over his proposal to strip the central bank of its consumer-protection duties. Just one senator voted against his confirmation in 2006; between 10 and 25 from both parties may this time, though that will not deny him confirmation.

Mr Obama could have succumbed to partisan priorities as well. The Fed chairman wields enormous influence over all economic policy, not just monetary policy, and a Democrat has not held the job since 1987. Mr Obama had many qualified candidates, from Larry Summers, his adviser and a former treasury secretary, to Janet Yellen, president of the San Francisco Fed. The president went with Mr Bernanke to keep together two principal architects of the response to the crisis—the other is Mr Geithner—and to eliminate market suspicions that he wanted a pliable loyalist in the job. In doing so, he has helped assure Mr Bernanke’s legacy of making the chairmanship less political and more technical. You might even say academic. – The Economist

]]> 3939 2009-09-24 02:47:44 2009-09-24 09:47:44 open open the-very-model-of-a-modern-central-banker publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5633#comments wfw:commentRSS http://zikkir.com/business/5633/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5633 syndication_item_hash 50a60a79cc96a2e78781d96855a5ef04 Jackson’s Holes http://www.ethiopianreview.com/business/3938 Thu, 24 Sep 2009 09:49:40 +0000 http://zikkir.com/business/?p=5635 The financial crisis will change central banking more than many central bankers care to admit

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COMPARED with the past two crisis-dominated gatherings, the atmosphere at this year’s central bankers’ meeting in Jackson Hole, Wyoming, was relaxed. Ben Bernanke, the Federal Reserve chairman, whom Barack Obama nominated for a second term on August 25th, found time to go hiking and horse-riding. The mood was one of quiet relief at the signs of economic recovery and not-so-quiet pride at central bankers’ role in saving global finance. But below the surface lurked concern and confusion. Many central bankers worried that the recovery would be feeble and fragile. Few have come to terms with how fundamentally the crisis has changed both their tasks and their toolkit.

For the past decade central banking has been dominated by what could be called the “Jackson Hole consensus”, since many of its elements were developed during the annual summer shindig organised by the Kansas City Fed. This consensus holds that central bankers’ prime task is to keep inflation low and stable. It favours an inflation target as a way to anchor people’s expectations of future policy, and puts a lot of weight on the transparency and predictability of central banks’ interest-rate decisions.

The consensus was not absolute. The Fed, for instance, has never adopted an explicit inflation target (though it has an implicit one). Some central bankers in Europe and Japan argued that monetary policy should “lean against” asset bubbles, whereas Fed officials thought bubbles were hard to spot, and that it was less costly to clean up by cutting rates after they burst. No one, however, focused much on central bankers’ responsibility for broader financial stability, or thought much about the financial plumbing through which changes in short-term interest rates affect the broader economy.

Now, in the wake of the financial crisis, it is commonplace to demand that central banks must worry about the health of the financial system, not just price stability. In many countries there are plans to give them responsibility for “macro-prudential supervision”, an ugly term for fretting about financial excesses. Less well understood, though, is how much these new tasks will change the central bankers’ world. The main tenet of the Jackson Hole consensus—that central banks earn their credibility by having a simple target which the public understands and to which they are held accountable—will be much harder to maintain.

Unlike price stability (which can be measured by a price index), financial stability is hard to define, let alone measure. Nor is it clear what tools to use. Most central bankers reckon regulation should be the first line of defence, though it is now more widely accepted that rates might also need to rise to stem an asset bubble. Just what regulations, though, is less clear. Many countries plan tighter rules on liquidity and capital for systemically important firms. But, as Stanley Fischer, governor of the Bank of Israel, pointed out to the Jackson Hole attendees, older tools such as margin requirements or maximum loan-to-value ratios could also be used. Jean-Charles Rochet of the University of Toulouse argued that the whole focus on systemically-important institutions was misguided. Instead, central bankers should guarantee the stability of vital markets (such as the money market).

The difficulty of defining financial stability and the plethora of potential tools means central bankers will, in future, have much more discretion. Their new mandate will also affect the old focus on inflation in ways that are, as yet, ill understood. Mark Carney, the governor of the Bank of Canada, pointed out that rules to promote financial stability, such as higher capital charges for big banks, will affect the process through which monetary policy decisions are transmitted to the broader economy. And using interest rates to promote financial stability means that inflation-targeting central banks may well deviate from their inflation targets for longer periods (for instance, if asset prices are soaring but consumer prices are stable). That is a sensible trade-off, but could compromise the central banks’ public credibility.

Another threat to this credibility comes from uncertainty over just how monetary policy works in a world of near-zero interest rates. In the conference’s main paper on monetary policy, Carl Walsh, an economist at the University of California at Santa Cruz, was sceptical about the efficacy of quantitative easing and other unconventional measures. But he argued that central bankers could boost output today by promising higher inflation in the future, which they would achieve by pledging to keep interest rates low even after the economy had begun to recover.

One way to do this would be to target a price level, rather than an inflation rate. With a price-level target, central banks would have to follow a period of excessively low inflation with higher inflation in order to get back to the target. But, he argued, central banks could not simultaneously promise to keep interest rates low for an “extended” period of time and promise to keep inflation stable (which is exactly what the Fed is now doing).

Not surprisingly, Fed officials denied there was an inconsistency between keeping inflation stable and rates low for a long time. The point, they argued, was to stop inflation expectations falling, not to push them up. Nonetheless, some central bankers were intrigued by the idea of price-level targeting. Mr Carney, especially, argued that it might prove a good way for central banks to retain their credibility while targeting both price and financial stability. But many, including Mr Walsh, worried that price-level targeting would be harder to explain to the public. Worse, a change in monetary-policy rules in the aftermath of a crisis would itself damage central bankers’ hard won credibility.

Unfortunately, this credibility will in any case be under attack. Over the next few years achieving vaguely defined financial stability as well as avoiding both inflation and deflation will only get harder thanks to a nasty backdrop of lower trend growth and high public debt. The Jackson Hole consensus evolved in calmer times. Central banking is now a lot harder. – The Economist

]]> 3938 2009-09-24 02:49:40 2009-09-24 09:49:40 open open jackson%e2%80%99s-holes publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5635#comments wfw:commentRSS http://zikkir.com/business/5635/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5635 syndication_item_hash f088ea101d82963583a948c89ef273dd Hovering Kraft http://www.ethiopianreview.com/business/3937 Thu, 24 Sep 2009 09:50:56 +0000 http://zikkir.com/business/?p=5637 America’s Kraft Foods will have to sweeten its offer to acquire Cadbury, a British confectioner

2

EATING comfort food at home and, if all else fails, gorging on chocolate seem to be the simplest ways for consumers to lighten the mood in the dark days of recession. Revenues grew in 2008 at both Kraft Foods, an American giant, and the latest morsel that it wants to gobble up, Cadbury, a British confectioner. The slump-defying strength of Kraft convinced it to make a £10.2 billion ($16.7 billion) cash-and-shares bid for Cadbury, which it made public on Monday September 7th in the hope that Cadbury’s shareholders might see sense in the proposal. The board of the British maker of chocolate and gum quickly rebuffed the bid as “fundamentally undervaluing” the company.

Kraft has its sights on the world’s second-largest confectionery-maker to form a “global powerhouse in snacks, confectionery and quick meals” with combined revenues of some $50 billion. Analysts agree that the firms would make an excellent fit. Kraft has little presence in Britain’s confectionery market, where Cadbury is strong, but it has thriving businesses in Scandinavia and Brazil, where Cadbury has made few inroads. Particularly attractive to Kraft is Cadbury’s strong showing in chewing gum, an area where Kraft has little expertise, particularly in Europe and Latin America.

Getting its hands on Cadbury would also allow Kraft to compete more closely with Mars. The American confectionery giant has plenty of clout with retailers since it controls 14% of the global confectionery market after its purchase in 2008 of Wrigley, a gum-maker, for $23 billion. A combination of Kraft and Cadbury would result in a firm with a similar portion of the world market. In the wake of the Mars/Wrigley deal many industry-watchers expected that Cadbury might make acquisitions of its own to take on the new market leader.

Cadbury was even touted as a possible buyer of Kraft’s confectionery arm. The British firm had bulked up by buying Adams, a big gum-maker, in 2003 to recover the number-one spot among confectioners that it held until the Mars/Wrigley tie-up. But attempts to streamline its business by selling the Dr Pepper Snapple Group, its American soft-drinks arm, coincided with the credit crunch. Cadbury was unable to make a lucrative sale to a private-equity firm, instead spinning off the business and raising rather less than it had once hoped for to fill its coffers for acquisitions. Cadbury is rumoured to have eyed Hershey, America’s dominant chocolate-maker. But any potential deal would probably have failed to win the support of the trust which controls Hershey and which is fiercely independent.

Cadbury’s success in realigning its business makes it a tasty target. Kraft estimates that it can wring out annual savings of $625m by the third year and has cannily promised to keep open a factory in Britain that was destined for the chop. But that is probably not enough. Cadbury’s shares leaped by over 40% on Monday morning after investors digested the news of the potential takeover, somewhat in excess of the 31% premium offered by Kraft over Friday’s closing price.

It seems likely that Kraft will return with a better offer. Cadbury’s mainly British investors are likely to want to see more cash in the takeover offer rather than shares in Kraft. But opinion is divided over how much more it can afford given its debt pile of $20 billion, a hangover from its purchase in 2007 of the biscuit business of Danone, a French food firm. Another possibility is that Hershey may team up with Nestlé for a joint bid that would split Cadbury between the two with the American firm swallowing the chocolate business and the Swiss one walking away with the gum side. What seems certain is that, amid the consolidation among confectionery businesses, Cadbury’s days as an independent company are drawing to a close. – The Economist

]]> 3937 2009-09-24 02:50:56 2009-09-24 09:50:56 open open hovering-kraft publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5637#comments wfw:commentRSS http://zikkir.com/business/5637/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5637 syndication_item_hash a9c463685358b8444316f57a16eb725a Cuomo subpoenas BofA board members http://www.ethiopianreview.com/business/3936 Thu, 24 Sep 2009 09:52:04 +0000 http://zikkir.com/business/?p=5639 Andrew Cuomo, New York attorney-general, has issued subpoenas to one current and four former board members of Bank of America, calling for them to give testimony under oath about what they knew in the months leading to BofA’s acquisition of Merrill Lynch, according to a source familiar with the matter.

Mr Cuomo will eventually call all 15 outside members of last year’s BofA board, nine of whom have since left, the source said, in an attempt to determine whether Ken Lewis, BofA chief executive, kept them apprised of mounting losses at Merrill and Merrill’s plans to pay out $3.6bn in bonuses on an accelerated basis. Mr Lewis has already given sworn testimony. – FT

]]> 3936 2009-09-24 02:52:04 2009-09-24 09:52:04 open open cuomo-subpoenas-bofa-board-members publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5639#comments wfw:commentRSS http://zikkir.com/business/5639/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5639 syndication_item_hash 9c22d9fee78c89e740ace88e2a18c879 Business this week http://www.ethiopianreview.com/business/3935 Thu, 24 Sep 2009 09:53:36 +0000 http://zikkir.com/business/?p=5641 21

Barack Obama went to Wall Street on the first anniversary of the collapse of Lehman Brothers to tout his blueprint for overhauling America’s financial regulatory system. The president recognised that the financial industry is “beginning to return to normalcy” after the worst panic since the 1930s, but warned that there are some “who are misreading this moment”. He reiterated his administration’s plans to create a Consumer Financial Protection Agency, close regulatory loopholes and hand more oversight powers to the Federal Reserve. Critics responded that the proposals would only hinder banks.

Ben Bernanke said for the first time that America’s recession is probably over, “from a technical perspective”. The chairman of the Federal Reserve cautioned that the economy’s recovery would be weak initially, and job creation would be slow. In its annual report on employment, the OECD described the short-term outlook for jobs in the rich world as “grim”.
Taking away the crutches

The IMF presented its guidelines for easing public aid to banks. The fund said that although it was “still too early” to withdraw substantial support, governments should be thinking hard about exit strategies and that the “recovery rates on assets acquired should be maximised”. See article

It emerged that Citigroup has begun discussions on how to reduce the American government’s 34% stake in the bank, which the Treasury bought through a preferred-stock conversion. Using Citi’s current share price, the government is thought to be sitting on a paper profit of around $10 billion. Citi’s share price fell sharply, however, when it sold $5 billion in government-backed bonds under emergency legislation that will expire soon, raising fears that it is still far from healthy.

A federal judge took an unusual step and set aside a proposed settlement between the Securities and Exchange Commission and Bank of America for allegedly misleading shareholders on executive bonuses paid to Merrill Lynch staff after the two banks merged. The judge said the settlement was a “cynical” agreement that did not identify precisely who was at fault, and ordered a trial. Meanwhile, New York state’s attorney-general issued subpoenas to five former and current BofA directors in his investigation into the bonuses.

Morgan Stanley said that John Mack would step down in January as chief executive, a job he has held since 2005 (he will stay on as chairman). The bank’s new boss will be James Gorman, who is currently in charge of asset management. See article

Robert Gates, America’s defence secretary, declared that the air force would regain control of the process for awarding a $35 billion contract for new refuelling tankers. The air force’s decision to go with an aircraft made jointly by Europe’s EADS and Northrop Grumman was overturned by Mr Gates in July 2008 after auditors broadly agreed with Boeing’s complaint about the procedures used to assess the project.
Circling

Japan Airlines shed 14% of its workforce, or 6,800 jobs, and reduced its schedule of international flights. It is also negotiating with other airlines keen to take a stake in JAL and gain access to its Asian routes.

The European Union’s competition regulator said she would study the terms of General Motors’ plan to spin off Opel, its European arm. After months of talks, GM accepted a bid from a Canadian-Russian consortium led by Magna, a car-parts supplier, which will invest €500m ($725m). The bid depends on loan guarantees from the German government, which some say will lead to the protection of German jobs and the closure of more efficient plants elsewhere. See article

Adobe Systems, which is best known for its Acrobat PDF reader and Photoshop software, agreed to pay $1.8 billion for Omniture. With revenues falling from its graphic-design products, Adobe wanted to gain access to Omniture’s technology for monitoring the performance of internet sites and web advertising.

Facebook reported that 50m people have signed up to its service since July, taking the total number of users to 300m. The social-networking website has also become cashflow positive, with enough revenue to cover its operations and capital spending. See article

Savoir vivre
Nicolas Sarkozy unveiled a report into the usefulness of gross domestic product as an economic indicator. The study, from a panel chaired by Joseph Stiglitz, a Nobel-prize-winning economist, was commissioned by the French president last year. It suggests that GDP could be improved by including factors that contribute towards individual well-being, such as holidays, and relying less on pure measures of market output. See article – The Economist

]]> 3935 2009-09-24 02:53:36 2009-09-24 09:53:36 open open business-this-week publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5641#comments wfw:commentRSS http://zikkir.com/business/5641/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5641 syndication_item_hash 547cd7483eeea599732f1160236dbedb Small isn’t beautiful http://www.ethiopianreview.com/business/3934 Thu, 24 Sep 2009 09:55:31 +0000 http://zikkir.com/business/?p=5643 Carmakers have escaped calamity. Now they face a big, long-term problem: people are moving to smaller vehicles

car

BIG motor shows are good barometers of the car industry’s mood. Twelve months ago in Paris, in the wake of the collapse of Lehman Brothers, the mood was dread—the knowledge that something terrible was about to happen. At the beginning of this year, at the show in devastated Detroit, and a few months later in Geneva as Chrysler and General Motors prepared for bankruptcy, it was all about the struggle to survive. This week in Frankfurt the industry gave a sigh of relief, confident that the worst was over but painfully aware there would be no return to business as usual any time soon, if ever.

The sense of relief is understandable. After the collapse in sales and savage production cutbacks that took place in nearly every big market nine months ago—with the huge exception of China—volumes have started to rise as inventories are cautiously rebuilt. Balance-sheets appear to have been stabilised if not repaired. There is even a good chance that in the final quarter of this year some of the big carmakers will return to (very modest) profit, while others will do so next year. Credit, the lifeblood of the industry, is flowing again, albeit somewhat anaemically. Particularly in Europe, government-sponsored scrappage schemes have brought buyers back into the market. And manufacturers are now enjoying reduced costs, partly from lower raw-material prices and partly because they have laid off workers.

What has not happened is any substantial reduction in capacity, particularly in Europe where factories are capable of churning out 4m more cars than the market can take even in a good year like 2007 (see chart). Not long ago it was widely assumed that the downturn would be sharp enough to take out more than one big carmaker. For better or worse, governments have done their utmost to stop that happening. Like the bailed-out banks, GM was probably always too big to be allowed to fail. But few expected sickly Chrysler to survive in anything like its present form. The removal of Opel/Vauxhall, one of the weakest big producers in Europe, would have done the industry a power of good.

Yet, thanks to President Obama’s auto task-force and a shotgun marriage with Fiat, Chrysler motors wearily on. German government largesse paved the way for Magna, an auto-parts firm, and Russia’s Sberbank to buy a majority stake in Opel/Vauxhall from GM on the condition that no plants will be closed in Germany. GM even found buyers for tiny Saab in Koenigsegg, a boutique Swedish sports-car firm, and China’s Beijing Automotive. Volvo, which is bigger and healthier than its Swedish rival, may be sold to Geely, China’s biggest privately owned carmaker. Far from consolidating, the European industry has instead gone in the opposite direction.

2

Although cuts at GM and Chrysler have removed some (though not enough) excess capacity in America, not a single car factory in Europe has closed so far. That is one reason why the carmakers assembled in Frankfurt believe that the normal strong, cyclical rebound may not happen this time. There are plenty of others.

One worry is the effect of withdrawing scrappage incentives. These have propped up demand this year, especially in Germany where they drove volumes to record levels. Optimists say that at least 70% of the scrappage purchases were incremental sales made to people who would not normally have bought a new car. But car-company bosses fear that volumes in Europe could slide next year unless “normal” new car buyers—well-off people and companies—return to the market. Even if scrappage schemes are continued or tapered, there may not be many buyers left who meet the qualifications.

Although the scrappage schemes have kept factories going, most of the action has been geared towards cheap, small vehicles which are less profitable for carmakers. They have thus weakened the “mix”—the balance of small and large vehicles sold—and reduced margins. The balance may swing back slightly next year, but the mix is threatened on a number of fronts in the longer term, raising doubts as to whether margins will return to their previous levels over the next few years.

To understand the importance of the mix, says Max Warburton of Bernstein Research, compare the cost of producing a small car such as the popular Fiat 500 with that of making a hulking sport-utility vehicle such as the Audi Q7. Mr Warburton calculates that the fixed costs are nearly identical, whereas the variable costs of making the Q7 (labour, raw materials and so on) are only about €10,000 ($14,700) higher for the Audi. Yet the Fiat sells for as little as €10,000, compared with a sticker price of at least €40,000 for the Audi. So a permanent shift toward smaller cars would devastate industry profits.

One big reason to expect such a shift is that the very cheap lease finance that manufacturers have relied on to stoke demand for their more costly cars, especially in America, Germany and Britain, is probably a thing of the past. Credit is unlikely to be so easily available again. Also, one of the ways leasing made more expensive cars seem affordable was by attributing to them high second-hand values after the lease was over. But higher volumes have dimmed the aura of exclusivity on which high residual values depend. BMW in particular has been badly hit by losses on returned cars and has cut the number of lease contracts it writes by a third.

A second threat to the mix, especially for the German premium makers, is demographic change. Arndt Ellinghorst of Credit Suisse says that by 2020 40% of new car buyers in developed markets will be over 60, compared with less than 30% today. Although the affluent old like premium brands, particularly Mercedes, they tend to want smaller, cheaper cars. Being mostly retired, they are generally buying a car with their own, rather than with a company’s, money. Empty-nesters do not need much carrying capacity. Over-65s also drive 45% fewer miles than the average, which means their cars last longer. Together with the growing durability of modern cars, Mr Ellinghorst reckons that underlying sales in developed markets could fall by as much as 30%. For growth in the sales of big, powerful prestige cars, manufacturers will have to rely on emerging markets.

A third threat to the mix is the ratcheting up of emissions legislation in almost every important car market as governments struggle to meet ambitious carbon-reduction targets. That seems certain to reverse the trend in recent years toward ever heavier and more bloated vehicles. It is also forcing manufacturers to invest abnormal amounts to develop clean technologies in the hope that their bigger vehicles can be made socially acceptable and escape penal taxation.

The executives gathered in Frankfurt this week were aware that threats to the mix, and therefore profits, are long-term and structural rather than short-term and cyclical. They also acknowledge that the industry will have to wean itself from the habit of using profits from bigger cars to subsidise smaller ones, and find a way to start building downsized vehicles that make money. Nick Reilly, who heads GM’s international operations, says that part of the answer is to adopt low-cost manufacturing techniques and not to load cheap cars with unnecessary technology. By contrast, Lewis Booth, Ford’s chief financial officer, reckons that the solution is to make small cars that are as good to drive as bigger ones and charge accordingly. Half of the Fiestas sold by Ford in Europe come with the top-of-the-range Titanium specification and are decently profitable, he says.

The problem confronts everyone (with the possible exception of Fiat, which has problems of its own), but it is most acute for the German premium makers, which dominated the Frankfurt show with their huge displays. Mercedes and BMW have enjoyed the best margins in the business, but they have lost lots of money on their small cars. BMW struggled to make a profit until recently even on its very successful Mini. Their rival Audi, being part of the massive Volkswagen Group, already has access to the technology and platforms it needs to make profitable small cars. To compete, Mercedes and BMW may have to do the unthinkable and join forces—either that, or risk their brands by forming partnerships with high-volume producers.

At the same time, the industry must tackle the problem of overcapacity in mature markets. Paradoxically, that may be easier once economies have emerged from recession and unemployment is no longer quite so high on the political agenda. More than anything, overcapacity undermines pricing power. The industry may feel it has come through a near-death experience in better shape than it could have hoped at the beginning of the year. But a return to health will take a lot longer. – The Economist

]]> 3934 2009-09-24 02:55:31 2009-09-24 09:55:31 open open small-isn%e2%80%99t-beautiful publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5643#comments wfw:commentRSS http://zikkir.com/business/5643/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5643 syndication_item_hash 22c6f876282c64d1be1545cf5453aade Green backing http://www.ethiopianreview.com/business/3933 Thu, 24 Sep 2009 09:56:34 +0000 http://zikkir.com/business/?p=5645 How can private capital be unlocked for green projects in poor countries?

NEITHER rich countries nor poor ones can tackle climate change alone. The rich bear most of the responsibility for the greenhouse gases in the atmosphere. But if they make cuts while the poor go on a carbon-heavy growth binge, the climate will suffer anyway. Rich-to-poor aid has thus been a big part of the discussions ahead of December’s climate conference in Copenhagen, which is meant to hammer out a successor to the Kyoto protocol.

Public money will only go so far. The cash on the table for the rich world to help the poor world amounts to tens of billions—nowhere near enough to meet the needs of surging economies like those of China and India, which are both adding heavily polluting coal-fired power-stations at an alarming rate. Hundreds of billions will be needed for greener growth in this part of the world. How then to turn tens of billions of public dollars into hundreds of billions in private finance? Pension funds have a duty to guarantee their members’ retirement benefits, after all, not cut carbon.

New thinking on this problem is emerging. In a forthcoming paper the World Economic Forum (WEF) suggests how public money can be used to guarantee, at least partially, rich-world investment in developing countries’ greenery. Currency and political risk are among the factors currently keeping European pension funds, say, from investing in Indian renewables. The WEF calls for negotiations in which development banks—the World Bank or regional ones like the Asian Development Bank—would use public funds from the rich world to guarantee investors against these sorts of country risks.

Investors are also putting forward ideas of their own. On September 16th a group of 181 institutional investors, together representing $13 trillion in assets under management and including national, state and private pension funds, called on world leaders to agree stringent carbon-cutting targets at the Copenhagen meeting. Emissions must fall by 50-85% by 2050, said the group, and cap-and-trade systems like the one Europe has (and America’s Congress is considering) must be a big part of the plan. Predictability of future policy is vital for these large, would-be green investors.

To turn private capital into green projects in the poor world, the group floated the idea of government-guaranteed bonds for climate-related investment, as well as more direct public support for specific green funds, in the form of loss-sharing agreements and debt guarantees. Some investors, like CalPERS, a huge Californian public pension fund, have already experimented with government-hedged green bets at a local level. Now to convince leaders to do it globally. – The Economist

]]> 3933 2009-09-24 02:56:34 2009-09-24 09:56:34 open open green-backing publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5645#comments wfw:commentRSS http://zikkir.com/business/5645/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5645 syndication_item_hash ed883f18da5d98e5cb0eb1f957d1539f Fed clampdown on US bank pay rules http://www.ethiopianreview.com/business/3932 Thu, 24 Sep 2009 09:57:31 +0000 http://zikkir.com/business/?p=5647 The Federal Reserve, seeking to clamp down on the excessive risk-taking that fuelled the financial crisis, is to promote broad new guidelines on pay and bonuses at banks as part of a major reform of compensation practices.

The Fed will promote new risk-adjusted bonus schemes, along with plans that would defer compensation, establish multiyear periods for assessing performance and encourage less payment for short-term results. – FT

]]> 3932 2009-09-24 02:57:31 2009-09-24 09:57:31 open open fed-clampdown-on-us-bank-pay-rules publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5647#comments wfw:commentRSS http://zikkir.com/business/5647/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5647 syndication_item_hash 77f47373b7ed7292d8a1eee8a6027a53 Walt Disney buys Marvel Entertainment Of mouse and X-Men http://www.ethiopianreview.com/business/3931 Thu, 24 Sep 2009 09:59:13 +0000 http://zikkir.com/business/?p=5649 Will Disney’s latest acquisition prove as Marvellous as it appears?

1

NOT even the combined powers of Spiderman, Iron Man, the Incredible Hulk, Captain America and the X-Men could keep The Mouse at bay. On August 31st Walt Disney announced it was buying Marvel Entertainment for $4 billion, just days after the comic-book publisher had celebrated 70 glorious years of independence, during which it had created many of the most famous cartoon characters not invented by Disney itself.

In fact, Marvel did not put up much of a fight, accepting what most analysts think was a generous price. Disney will get access both to Marvel’s creative minds and—potentially far more valuable in an age when familiar stories rule the box office—an archive containing around 5,000 established characters, only a fraction of which have yet made the move from paper to the silver screen.

Marrying Marvel’s characters with Disney’s talent for making money from successful franchises is a good idea. In recent years Disney has proved the undisputed master at exploiting the same basic content through multiple channels, including films, websites, video games, merchandising, live shows and theme parks.

The edgier, darker Marvel characters should fill a hole in Disney’s much cuddlier portfolio. This currently covers most people from newborn babies, through the addictive “Baby Einstein” DVDs (popularly known as “baby crack”), to adults, through its Touchstone label. Disney’s own cartoons, and the newer ones created by Pixar, an animation studio it bought in 2006 for $7 billion, appeal to children. “Hannah Montana”, a hit television show, caters to pre-teen girls. The Marvel characters should be just the thing for boys of the same age, whom Disney has found especially hard to attract of late.

However, many of Marvel’s best-known characters already have contractual obligations to various rival media conglomerates that will not be easily or quickly undone. Sony has an indefinite hold on Spider-Man; News Corporation exerts similar control over the X-Men. Universal owns distribution rights to the Hulk and long-term theme-park rights in Florida to several characters. This is a pity, because Disney’s theme parks are a part of its business where teenage boys would particularly welcome the contrast that Marvel’s superheroes would provide to the Magic Kingdom’s oppressive wholesomeness.

Another risk is one that often presents itself in mergers, especially those involving creative types: a clash of cultures. Happily for Marvel, Disney is no longer the corporate control-freak it was under its former boss, Michael Eisner. His successor, Bob Iger, has turned out to be a relatively hands-off boss, with the Pixar acquisition a model of the sort of treatment Marvel can expect. Indeed, John Lasseter, the chief creative force behind Pixar, reportedly played an important role in reassuring Marvel’s talent that their culture would be safe in Disney’s hands.

Also fully behind the deal is Stan “the Man” Lee, a living legend of the cartoon world who helped create many of Marvel’s best-known characters during the 1960s. Mr Lee, who recently launched his first digital comic as part of a partnership between his new firm and Disney, has predicted that the Disney-Marvel merger will prove “a terrific deal which will be extremely beneficial to both companies. The synergy between them is perfect.”

Ironically, in the 1960s, Mr Lee tried, without success, to convince his bosses to turn Marvel into a multimedia company like Disney. Now, albeit in a roundabout way, one of his outlandish fantasies is about to become a reality. – The Economist

]]> 3931 2009-09-24 02:59:13 2009-09-24 09:59:13 open open walt-disney-buys-marvel-entertainment-of-mouse-and-x-men publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5649#comments wfw:commentRSS http://zikkir.com/business/5649/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5649 syndication_item_hash 8e8b163af36e45c47d44a126e10d6d1b Value Is En Vogue Again http://www.ethiopianreview.com/business/3930 Thu, 24 Sep 2009 10:01:55 +0000 http://zikkir.com/business/?p=5651 I’ll confess it – though I’m mostly a value investor, I’ve been intrigued by some of the more compelling growth stocks all those green shoots have been pushing to the head of the class since March. With the first real test of the bull market upon us though, I’m getting back to my value roots and starting to look for the next batch of value ideas worth transplanting into growth-heavy portfolios.

IN PICTURES: World’s Greatest Investors

The irony is that these value names may have more collective growth potential than growth stocks do. In any case, here are some of the better value stocks you may have put on the backburner over the last six months, but might want to dust off soon.

1. Humana Inc. (NYSE:HUM)
It seems as if health care plan providers are able to breathe a new sigh of relief on a daily basis. The latest worry taken off the table was this week’s introduction of a healthcare reform bill that not only won’t kill the health insurers, but may actually help them.

The so-called ‘Baucus Plan’ effectively forces all citizens to purchase some kind of health insurance, but the plan also provides a co-op type of option as a low-cost alternative for those that can’t afford conventional insurance. The co-op is not expected to be a fiscal threat to insurers though.

In fact, the plan may actually be a bit of a boost for Humana, not to mention UnitedHealth Group Inc. (NYSE:UNH) and Aetna Inc. (NYSE:AET), both of which could be interchangeable with Humana as one of my value picks. See, all three offer what are called high deductible, health plans (or HDHPs), which may become the minimum insurance plan standard if the current bill passes.

That’s not a reason alone to view Humana or its peers as a value play – it simply removes a major impediment. Humana tops my value list just because it has single-digit price multiples on a trailing and forward-looking basis.

2. Tidewater Inc. (NYSE:TDW)
Tidewater is something of an indirect economic recovery play. Its core business is oil shipping, and as long as even a tepid recovery continues to grow roots, the company should be able to move forward.

Despite a somewhat anemic second calendar quarter for this year (Q1 of the fiscal quarter) in terms of revenue, Tidewater has maintained 20% or higher margins over the last twelve months. Between strong margins and consistent top lines in good and bad environments, a P/E of 6.4 seems more than fair.

3. Lockheed-Martin Corp. (NYSE:LMT)
As with the Humana pick, it wouldn’t be hard to equally justify choosing competitors Raytheon Inc. (NYSE:RTN) or L-3 Communications Inc. (NYSE:LLL) instead of Lockheed-Martin. However, of the three, Lockheed’s stock appears to have run away the least so far. It is as much of a defense/sector call as it is a stock pick though, rooted in a bigger-picture idea.

The U.S. military recently awarded L-3 a $500 million contract, and then followed that up with what could be a contract worth up to $250 million. Raytheon picked up some new military business as well. And all three companies are apt to benefit from the U.S. government’s recent decision to overhaul its missile defense program in the Middle East.

The pace and size of contracts is something we haven’t seen in months; it could be a sign that the military spending spigots are on.

However, the Navy’s recent request of Lockheed to accelerate delivery of its F-35 fighter pushes this particular stock to the forefront. If whispers that F-18s (built by Boeing) are being rapidly depleted are true, or that Boeing is desperate enough to start discounting them, then LMT isn’t just a cheap stock, but a cheap stock of a company that could put up better-than-expected numbers over the next three to five years.

4. Malaysia Fund Inc. (NYSE:MAY)
Though still a value play, the Malaysia Fund is a value idea in a different vein. The closed-end fund is undervalued relative to its NAV. The most recent net asset value is listed at $8.55 per share, while the actual fund is trading at $7.33 – a 14% discount.

That’s not the only reason an investor would want a fund of any ilk. You buy funds based on management’s performance and the underlying opportunity. It just so happens that with the FTSE Bursa Malaysia KLCI Index is up 38% year to date, telling us that this emerging market is indeed a strong performer even if it’s a tad off the beaten path. (For more, check out The Value Investor’s Handbook.)

The Bottom Line
While growth stocks are an intriguing prospect, especially now, value plays are also out there to be had. And these four are definitely worth a second look.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free! – Investopedia

]]> 3930 2009-09-24 03:01:55 2009-09-24 10:01:55 open open value-is-en-vogue-again publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5651#comments wfw:commentRSS http://zikkir.com/business/5651/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5651 syndication_item_hash 95a7d826305045f70483fb0d794fe5e9 Adobe Remains Profitable http://www.ethiopianreview.com/business/3929 Thu, 24 Sep 2009 10:06:10 +0000 http://zikkir.com/business/?p=5653 Software provider Adobe Systems (Nasdaq:ADBE) reported third-quarter earnings earlier this week that saw sales and earnings growth suffer in sympathy with a global slowdown in business and advertising activity. This clearly affected Adobe’s customer base of creative professionals, but not its overall profit levels. The key question is whether these current tepid trends are fully built into Adobe’s share price.

Recent Results
Reported revenue fell 21.4% to $697.5 million as sales fell in each segment. Creative solutions, which helps creative professionals with graphic design and similar tasks, posted an 18.9% decline to account for just over 57% of total revenue. Business productivity constitutes the other major segment and includes the flagship Adobe Acrobat franchise. Sales in this segment fell nearly 26% to account for just over 30% of the total. Management cited stable yet tepid top-line trends in its Americas geographic segment (51% of sales) with continued weakness in Europe (28%) and better-than-expected in Asia (21%). (Learn more about how analyzing segment data can be more useful to the investor in The Importance of Segment Data.)

Cost-cutting moves helped reduce product, service and support costs by 41.3%, while other operating expenses fell 16.5%. This held the 23.6% fall in operating income to $167.6 million. Share buybacks also helped the reduction in the bottom line, but reported earnings still fell 25.7% to 26 cents per diluted share.

Acquisition Announced
Adobe also announced it will be acquiring Omniture (Nasdaq:OMTR) for $1.8 billion. Omniture is involved in web analytics that help clients monitor web usage and use the stats to drive traffic and advertising trends. Adobe doesn’t expect much for synergies, but likes the ability to diversify revenue and add a fast-growing – though low-profit – business with plenty of potential.

Adobe’s Advantages
The Omniture purchase isn’t a game changer but it is significant as it accounts for about 10% of Adobe’s total market capitalization. And while total revenue trends are coming in negative and analysts project an 18.9% fall in full-year sales, Adobe remains a profit machine and posted third-quarter net margins of about 20%, which is impressive as many of its services are also offered by rivals including IBM (NYSE:IBM), Google (Nasdaq:GOOG), and even Apple (Nasdaq:AAPL). A number of these competing services are even free but many fail to offer the multitude of services that Adobe’s installed user base has come to count on.

Bottom Line
The stock is a bit too rich for my tastes at a 21 times forward P/E multiple. But debt levels remain minimal and the firm continues to throw off prodigious amounts of free cash flow. I would be much more interested in the shares in the low $20s, though current bullish market sentiment suggest that a move back to 52-week lows is unlikely.

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By Ryan C. Fuhrmann

Ryan C. Fuhrmann, CFA, has a background in portfolio management, overseeing assets for high-net-worth individuals and covering a broad array of industries from a generalist perspective. An active student of investing, he focuses on communicating his ideas as an investment writer and learning from the financial community. Ryan is also actively involved with the CFA Institute. Feel free to visit his website at www.rationalanalyst.com. – Investopedia

]]> 3929 2009-09-24 03:06:10 2009-09-24 10:06:10 open open adobe-remains-profitable publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5653#comments wfw:commentRSS http://zikkir.com/business/5653/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5653 syndication_item_hash 76da94c09473319fda5820495bc3aca1 A Grocer For Hungry Investors http://www.ethiopianreview.com/business/3928 Thu, 24 Sep 2009 10:07:07 +0000 http://zikkir.com/business/?p=5655 Generally speaking, the grocery industry is a risky business in which to invest. The low-margin business models don’t allow much pricing flexibility and ultra-competitive nature among rivals requires lean cost structures. Overall, grocers in the past haven’t made very appealing investments.

However, the nature of the industry is changing. Consumers are transitioning from eating out at restaurants to eating at home to save money, and big consumer product giants like Proctor & Gamble (NYSE: PG) and Kraft (NYSE: KFT) are losing their pricing power as grocers are creating their own private-label products to rival higher priced brand names. Both trends are quite favorable to grocery stores and are improving my outlook on the industry in general.

Grocers’ Moat
From a cosmetic perspective, it’s difficult for grocers to distinguish their store from their rival down the street, except in pricing. Sure, cleanliness, layout and service can go a long way, but those attributes can be easily copied by any competitor. The real advantage that builds a competitor’s moat is internal logistics. It’s key for grocers to creatively and strategically structure their operations in order to gain a competitive advantage, because those with lower costs ultimately offer lower prices without killing margins.

Based on this notion, Kroger (NYSE: KR) stands out as my top pick among the most prominent public grocers, including Whole Foods (Nasdaq: WFMI), Safeway (NYSE: SFY) and SuperValu (NYSE: SVU).

Kroger operates an impressively efficient distribution system that has resulted in noticeable expense control. The company’s automated supply chain process is revolutionary in the industry. This is key, because it allows Kroger to leverage its lean business model to offer very competitive prices to its customers in these tough times.

A Distasteful Quarter
Of course, even a superior operational structure can’t fully shield a retailer from the impact of sluggish sales and heavy promotional activity. For the second quarter, total sales slipped 1.98% – though excluding fuel, revenue rose 3.5%. Margins also contracted from price cutting, which ultimately led to profits dropping 8%.

Operational performance may have been less than desirable, but that’s to be expected in poor economic times. I’m more focused on the company’s ability to gain market share and grow its customer base. During the quarter, Kroger increased both the number of households it serves and the number of items people are buying. This is key, because it means that Kroger is increasing its market share; a feat not easy in such a competitive space.

Evolving Consumers
As management addressed in the conference call, consumers are continuing to evolve their shopping habits as the recession drags on. The major change is the continuous trading down to lower-priced private label brands. And while alteration in pricing mix surely impacted margins, it is favorable for Kroger because the company offers one of the most extensive and well established private label product lines. By lining its shelves with cheaper alternatives stamped with a Kroger label, the retailer is essentially branding itself. In the long run, this can build strong loyalty among customers.

Bottom Line
Missing earnings estimates can provide great buying opportunities, and I think investors’ reaction to Kroger’s earnings presents this opportunity for a company that is emerging as a leading competitor in the industry. (Read Analyzing Retail Stocks to learn about the most important metrics to look at when analyzing retail stocks.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

By Kristin Graham

Kristin Graham is an equity analyst with experience in covering retail and consumer stocks. She obtained a unique global perspective by sailing around the world on the Semester at Sea study abroad program. She also specializes in global equities and international investing. Graham is a Level III CFA candidate. – Investopedia

]]> 3928 2009-09-24 03:07:07 2009-09-24 10:07:07 open open a-grocer-for-hungry-investors publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5655#comments wfw:commentRSS http://zikkir.com/business/5655/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5655 syndication_item_hash 194aaf6fddde7fc350f93605e4fe9a42 Vantage Drilling A Ground Floor Opportunity http://www.ethiopianreview.com/business/3927 Thu, 24 Sep 2009 10:08:39 +0000 http://zikkir.com/business/?p=5658 Investors with an appetite for risk may want to take a chance on Vantage Drilling Company (NYSE:VTG), a fairly unknown micro cap driller that is down more than 70% from its initial public offering (IPO) two years ago.

Vantage Drilling Company was born two and a half years ago through an IPO in May 2007. The company raised $240 million through the sale of units consisting of common stock and warrants. The company was a Special Purpose Acquisition Corporation (SPAC) that raised capital to purchase an oil service business.

All Grown-Up
The company now owns four jackup rigs. Two are contracted and working in Southeast Asia and West Africa, while the other two will be delivered to the company from the shipyard in October and December 2009. The company also owns 45% of an entity that owns the Platinum Destroyer, a drillship that can operate in up to 12,000 feet of water. This drillship is under construction as well.

Vantage Drilling Company also manages the construction and will operate two other drillships and two semi-submersibles. The company has contracts for three of its five owned rigs.

A Youthful Glow
The company’s main advantage over more established rivals like Rowan (NYSE:RDC) or Ensco International (NYSE:ESV) is the average age of its rig fleet. Rowan Drilling has a 19-year average age while Ensco International’s fleet is 23. Deepwater driller Transocean (NYSE:RIG) has an even older fleet at an average age of 26 years. The average age of the worldwide jackup fleet is 23 years.

Vantage Drilling Company will have the lowest average fleet age once the rigs are completed. This will lead to less maintenance cost over the long term. Newer rigs also have better technology, which make them more attractive to operators.

The Downside
One problem is that VTG may be on a perpetual schedule of raising capital, as the company must pay for the construction of its new rig fleet in stages while it is being built. The market usually does not like this type of dilution, leading to extra volatility in the stock.

This month the company raised $70.1 million in net proceeds, in an offering of 48.4 million shares at a price of $1.55 per share. The company also has warrants trading under the symbol VTG.WS. The warrants entitle the holder to purchase one share of stock at a price of $6.00. The warrants expire May 24, 2011.

Another risk for the company is its leverage. Vantage Drilling Company had to make the final payments in late 2009 to its builder for two of its jackup rigs. The company borrowed $100 million on a credit line at 15% and secured a loan from the builder at 12% interest rate to meet its payment schedule. The recent equity capital raise was a requirement of this financing.

The Bottom Line
Vantage Drilling Company is certainly a riskier play than the more established offshore and jackup rig companies, but this company just might be a chance to get in on the ground floor of the next big thing in the oil patch. (For a primer on the oil industry, refer to our Oil and Gas Industry Primer.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
By Eric Fox

Eric J. Fox, is the founder of Brittain Capital Management, LLC., which manages the Alesia Fund, LP., a Value oriented long/short investment partnership. You can read more of his views on investments at his blog – Stock Market Prognosticator. Mr. Fox also publishes a paid investment newsletter. Please visit The Unknown Stock Report for more details. – Investopedia

]]> 3927 2009-09-24 03:08:39 2009-09-24 10:08:39 open open vantage-drilling-a-ground-floor-opportunity publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5658#comments wfw:commentRSS http://zikkir.com/business/5658/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5658 syndication_item_hash 554d2121a352c807414e38f81ec9896e Hard Road Still Ahead For Automakers http://www.ethiopianreview.com/business/3926 Thu, 24 Sep 2009 10:10:16 +0000 http://zikkir.com/business/?p=5660 Auto sales around the world picked up in recent months largely due to generous government incentives. Now that many of those incentives are winding down, is there enough natural sales growth in the market to move the industry back into the black?

While the recessionary sales slump may have bottomed out, the sluggish demand expected over the next few years is unlikely to turn things around for an industry that still hasn’t tackled the issue of excess capacity in a meaningful way.

Cash For Clunkers “Sugar High” Now Over
In the U.S., the “Cash For Clunkers” program, which offered consumers incentives of between $3,500 and $4,500 to trade up to a brand new car helped push sales up to an annualized rate of about 14 million a year with the primary beneficiaries being Ford (NYSE:F), Toyota (NYSE:TM), Honda (NYSE:HMC) and Hyundai. Both GM and Chrysler saw their sales decline.

More recent industry sales data now reveals that the incentives may have brought forward sales that would have otherwise happened in the fall. Early September sales have decelerated sharply to a roughly 8 million a year pace.

Competition Heats Up In The Face of Weaker Sales
This post-incentive slump now looks like it has triggered a major competitive battle between GM and rival Toyota. GM’s recent launch of an unprecedented 60-day money back guarantee promotion has been quickly followed by a reported $1 billion ad blitz by Toyota later this year targeting the U.S. market. With analysts projecting a fairly anemic sales rate of 10.5 million units in the fourth quarter, this “Clash of the Titans” could go over like a damp squib as most dealers now have limited inventories in the post-incentive period and average unit prices are up by $500 to $1000.

These higher prices are likely to produce negative comparisons in the minds of many consumers whose expectations on price were likely shifted downward during the incentive period. The net result of all of this could be higher expenses, disappointing sales and weaker profits for the combatants. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)

Full Recovery Still Years Away
Visibility regarding the sales outlook beyond the next six months has recently emerged from European auto industry execs pitching their products at the Frankfurt Auto Show. While European car sales were up 3% in August, also in part due to incentives, many execs were quoted as seeing little chance that sales would return to 2007 levels until at least the 2014 to 2015 time period.

In the meantime, the industry must try to figure a way out of the massive glut in excess capacity now plaguing the European car makers. Forecasters now expect them to build only 17.7 million cars this year; 10.4 million units less than their factories are capable of turning out. Moreover, analysts now see the recent deal wherein GM sold a majority stake in its European Opel unit to a consortium led by Canadian parts-maker Magna (NYSE:MGA), financed in part by massive German government subsidies, as doing little to correct the overcapacity problem.

China On The March
So while U.S. and European auto makers look like they’ll continue struggling for years to come, the industrial power-base of the industry appears to be shifting eastward to China. Over the last few years, they appear to have been quietly gearing up for this moment, gaining market share by buying brands like the U.K.’s MG-Rover and now being reportedly on the prowl for GM’s Hummer and Saab.

In their domestic car market, which is now the largest in the world, they acquired key technological expertise through partnerships with big names like VW, Ford, Daimler (NYSE:DAI) and Hyundai. With their production now in excess of their domestic demand, China’s car and auto parts makers have been aggressively pushing into foreign markets. The recent move by the U.S. to slap a prohibitive tariff on the import of Chinese tires, thus risking the ire of its major creditor, reveals the seriousness with which the U.S. views the Chinese competitive threat to the U.S. manufacturing base.

The Bottom Line
It’s not your father’s auto industry anymore. While massive government intervention may have saved the industry from sliding into the abyss, the real problems of excess capacity, below trend sales and rising third-world competition are likely to hobble industry profitability for years to come. (Learn what else to consider before investing in this industry in our article Analyzing Auto Stocks.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
By Eugene Bukoveczky

Eugene Bukoveczky is a freelance writer and investment researcher. He holds a CFA designation and has spent several decades working in the investment business in places like Toronto, New York, London and Dubai. He currently resides in Nova Scotia, where, when not writing, he devotes his time to chopping wood, growing his own vegetables, riding his bike to the store, and thinking about other ways to reduce his carbon footprint. – Investopedia

]]> 3926 2009-09-24 03:10:16 2009-09-24 10:10:16 open open hard-road-still-ahead-for-automakers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5660#comments wfw:commentRSS http://zikkir.com/business/5660/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5660 syndication_item_hash fec4bb595523b3ebf8dbf10d8a163415 Are Investors Too Concerned With Dilution? http://www.ethiopianreview.com/business/3925 Thu, 24 Sep 2009 10:12:13 +0000 http://zikkir.com/business/?p=5663 Investors tend to have a knee-jerk sell reaction to a secondary offering that dilutes the shareholder base. Although this dilution is a mathematical fact, the additional capital may allow the company to get over whatever business cycle trough it finds itself stuck in.

Two recent offerings highlight the risk that investors incur when a company raises capital and dilutes existing shareholders.

The Dilution Solution
Eastman Kodak (NYSE:EK) announced that it was raising as much as $700 million in capital through a complex deal involving Kohlberg Kravis Roberts & Co. L.P. Kohlberg agreed to buy up to $400 million in senior secured notes due in 2017 at an interest rate of 10-10.5%. Kohlberg will also get 53 million warrants to buy Kodak stock. (Read about KKR’s historic leveraged buyout of RJR Nabisco in our article Corporate Kleptocracy At RJR Nabisco.)

Kodak placed another $400 million with institutional investors in a convertible note due in 2017. This note pays interest at 7%. Kodak will use the proceeds to buy back an existing convertible issue that was due in 2033. Under the terms of that convertible, holders could have put the issue back to Kodak in October 2010.

This financing eases concern the market had regarding whether Kodak would have the funds to meet this put.

The bottom line is dilution of as much as 35-40% to existing shareholders once the new capital structure is in place. Investors’ reaction was predictable: shares sold down about 15%.

Kodak had little choice in agreeing to the deal, as the company’s losses have been mounting the last few years. Kohlberg extracted as much as it could from the company to the benefit of its investors. The drop in the stock’s price sounds scary, but this just might be what Kodak needs to get over the recession and survive until the economy starts to grow and consumers and businesses start buying its products again.

Watering Down Palm
Palm Computer (Nasdaq:PALM) also raised capital and did a straight equity offering, just as its stock price was nearing its highest point in years. The company issued 16 million shares, an 11% dilution of the existing shareholder base. Palm Computer is not in distress and was simply taking advantage of an overbought stock and investor enthusiasm. The stock sold off on the day the deal was announced.

Earlier in the year, several small and micro cap exploration and production companies had to raise capital to meet debt maturities or to fund ambitious capital plans.

In May 2009, Kodiak Oil and Gas (Nasdaq:KOG) raised $7.15 million in an equity offering, priced at only 75 cents per share. Brigham Exploration Company (Nasdaq:BEXP) offered 32 million shares to the public that same month at $2.75 per share.

Although these deals were dilutive, since then the stocks have outperformed the market by a wide margin. Kodiak Oil and Gas and Brigham Exploration closed at $2.52 and $9.43 per share, respectively, on September 18, 2009.

Conclusion
Investors tend to exhibit the typical short-term reaction to a dilutive offering, ignoring the positive macro effect the additional capital can have for a company. However, secondary offerings are not always a bad thing, despite the dilution of shares. Maybe more forward-thinking investors can take advantage of the market’s short-sightedness.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

By Eric Fox

Eric J. Fox, is the founder of Brittain Capital Management, LLC., which manages the Alesia Fund, LP., a Value oriented long/short investment partnership. You can read more of his views on investments at his blog – Stock Market Prognosticator. Mr. Fox also publishes a paid investment newsletter. Please visit The Unknown Stock Report for more details. – Investopedia

]]> 3925 2009-09-24 03:12:13 2009-09-24 10:12:13 open open are-investors-too-concerned-with-dilution publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5663#comments wfw:commentRSS http://zikkir.com/business/5663/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5663 syndication_item_hash 4bbc539eebe2e1d9af2237bba016d59d Profit From The Return Of The Day Traders http://www.ethiopianreview.com/business/3924 Thu, 24 Sep 2009 10:14:10 +0000 http://zikkir.com/business/?p=5665 It was only a matter of time. Every new bull market seems to entice a new generation of day traders. Despite the significant hurdles faced by retail traders in terms of competing with investment banks and hedge funds, sustained market rallies have a way of making scores of retail investors think they’re ready to be full-time traders.

This rally has proved to be no different. Recent media reports show that trading volume at discount brokers such as Charles Schwab (Nasdaq:SCHW) and TD Ameritrade (Nasdaq:AMTD), a unit of Canada’s Toronto-Dominion Bank (NYSE:TD), soared 14% in August over July’s numbers. What makes this increase all the more impressive is that August is usually one of the lightest volume months of the year.

Now we’re not saying that day-trading is for everyone – it’s not and frankly, day-trading is one of the riskiest endeavors in all of investing. That said, no matter what your style of investing, there is one constant: Brokers make money on every trade and the higher the trading volume the higher the profits for the brokers. This means that more day trading provides opportunity for investors – and you don’t need to be a day trader to take advantage of it. Let’s take a look at a few brokers that may benefit from higher trading volume.

* Knight Capital Group (Nasdaq:NITE)
3-Month Performance: 31%
52-Week High: $22.75

* Charles Schwab (Nasdaq:SCHW)
3-Month Performance: 2%
52-Week High: $26.20

* E*TRADE Financial (Nasdaq:ETFC)
3-Month Performance: 20%
52-Week High: $3.91

Not a Quiet Knight
Knight Capital is one of the largest processors of electronic trades. In August, the company saw its average daily volume rocket higher, processing nearly four million U.S. equity orders per day compared with 2 million a day in August 2008. August volume was also up 5.4% from July. In dollar terms, Knight processed $24.2 billion in trades per day in August, up from $22.5 billion in July.

What’s noteworthy is the fact that Knight Capital just got quite the bullish mention from a popular television analyst. Even more noteworthy is the fact that Knight is stealing market share from the New York Stock Exchange and has benefited from the collapse of firms like Bear Stearns.

Knight is resting just under a dollar below its 52-week high and has caught the eye of some institutional investors. And, although the stock is up nearly 41% in the past 52 weeks making it one of the best financials, it looks like there may be more to come.

More Than Just a Trade Processor
Charles Schwab does a lot more than just process trades for retail investors. The company provides asset management services, sells mutual funds and offers traditional banking services, including checking and money market accounts, among other things. Charles Schwab has over $1 trillion in assets, so the company isn’t too dependent on trading volume, but Schwab’s daily trading volume rose 15% in August from July.

Unfortunately, this doesn’t mean all is well at the largest U.S. discount broker. Schwab is facing some hurdles in the form lower fees from managed accounts and declining interest rates. This means the company will have to waive about $80 million in money market fees. Schwab said in July it could waive as much as $200 million in fees this year and that’s not good news for a fee-based company like Schwab.

With $1.56 billion in debt and trading at nearly 19 times forward earnings, there might be better opportunities among the brokers than Schwab at this point.

A Speculative Play
E-Trade has fallen on tough times over the past year, losing nearly 50% of its value due to its exposure to risky mortgage loans. Two years ago, E-Trade was a $25 stock, now it sells for less than $2. While E-Trade’s daily average revenue trades were up 37.4% in August, the company was directed by the Office of Thrift Supervision to put another $100 million of capital into its bank to bolster its capital position.

At this point, E-Trade is a play on a possible acquisition by a larger rival. Toronto Dominion, Schwab and Wells Fargo (NYSE: WFC) have all been mentioned as possible suitors for E-Trade, but it appears an acquisition won’t happen until 2010, at the earliest. Even then, a buyer would have to offer at least $4 a share to make it worth holding E-Trade’s shares until a buyout materializes.

The Choice Is Clear
The stocks we’ve highlighted here are a mixed bag. E-Trade is a speculative play at best. Schwab has long-term potential, but is facing short-term headwinds. That leaves us with Knight Capital, which is the best of the stocks mentioned here and probably the best way to play a new day-trading boom. (For more, see Full Service Brokerage Or DIY?) – Investopedia

]]> 3924 2009-09-24 03:14:10 2009-09-24 10:14:10 open open profit-from-the-return-of-the-day-traders publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5665#comments wfw:commentRSS http://zikkir.com/business/5665/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5665 syndication_item_hash e9209f6936dd981215fb779bc91bb3a5 ArcelorMittal may shift Rs 50k-crore project within Jharkhand http://www.ethiopianreview.com/business/3922 Thu, 24 Sep 2009 10:18:09 +0000 http://zikkir.com/business/?p=5669 Facing resistance from villagers to acquire land in Khunti for its proposed Rs 50,000-crore steel plant, ArcelorMittal group is considering an option to shift the project to another location within the state of Jharkhand, a state government official said here.

“We came to know that one of the options they (Mittals) are considering is to shift to some other location within the state for their proposed greenfield integrated steel plant project,” N N Sinha, secretary (industries), Government of Jharkhand, said today.

The world’s biggest steel maker is working on modalities to set up Rs 50,000-crore steel mill in the state with a capacity of 12-million tonne per annum and is awaiting various regulatory approvals from the state for the project.

NRI billionaire L N Mittal’s ArcelorMittal in Khunti district is facing resistance by villagers at their proposed site at Torpa, Sinha said talking to reporters on the sidelines of ground breaking ceremony for Rs 65.63 crore Adityapur Auto Cluster project.

In view of this, the steel major may shift to Gumla district, he said.

He did not provide further details on whether the steel maker, which is acquiring land at Khunti and Gumla districts, will shift entirely to Gumla or to some other location. ArcelorMittal needs about 6,000 acres for the proposed project, he said, adding, the allotment of iron-ore mines to the steel major was well under consideration.

“We are trying to sort out their problems one by one,” Sinha added.

When contacted, an ArcelorMittal official who did not like to be quoted said, “We don’t have any comments on the issue.”

The company needs about 6,000 acres for the proposed project, he said adding, allotment of iron-ore to the steel major was well under consideration. – Business Standard

]]> 3922 2009-09-24 03:18:09 2009-09-24 10:18:09 open open arcelormittal-may-shift-rs-50k-crore-project-within-jharkhand publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5669#comments wfw:commentRSS http://zikkir.com/business/5669/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5669 syndication_item_hash ead1170323b7fe39ad3e083ff54897f2 Govt not in favour of dual listing http://www.ethiopianreview.com/business/3921 Thu, 24 Sep 2009 10:19:21 +0000 http://zikkir.com/business/?p=5671 Will convey the view to visiting South African officials.

The finance ministry is expected to tell officials from the South African government who are coming to India this week to discuss concerns on the proposed $23 billion Bharti-MTN combination to not insist on a dual listed company (DLC) as a pre-condition for clearing the deal.

“Dual listing is not a requirement for the deal. It is the South African government that is insisting on it due to some past experience. We will try to align their fears,” said a senior finance ministry official.

The official said the deal did not require any approval from the government, except from the Foreign Investment Promotion Board, since there is a cap of 74 per cent on foreign direct investment for the telecom sector. The finance ministry has already made it clear that the proposal would not face any hurdles with all the changes in foreign investment policy rules via the introduction of Press Notes 2 and 4 early this year.

The official noted that permission for dual listing would require full capital account convertibility and therefore changes in regulations under the Foreign Exchange Management Act. However, said the official, no change is needed in company law. “There may not be an enabling provision in the Companies Act but it does not prevent dual listing,” he said.

Senior officials from the South African government are expected to meet officials in the finance ministry, as well as members in the Reserve Bank of India and the Securities and Exchange Board of India. The team will be going to both Delhi and Mumbai.

Top sources say the deal between the two telcos has been agreed on and is ready to be signed. However, this will happen only after the South African government gives clearance, after which it would go for shareholders’ approval.

Under the original plan, Sunil Mittal-promoted Bharti Airtel, India’s largest telecom company with over 107 million subscribers, is to acquire a 49 per cent economic interest in MTN. In return, MTN will acquire a 25 per cent economic interest in Bharti Airtel for $2.9 billion and MTN shareholders will acquire another 11 per cent.

MTN will issue new shares to Bharti. The Indian company will also acquire around 36 per cent of MTN’s current paid-up capital from its shareholders at $10.2 per share, entailing a cash outgo of $6.8 billion. The fresh share issue will eventually take Bharti’s shareholding in MTN to 49 per cent. In return, Bharti will issue 0.5 GDRs for every MTN share it acquires. The Indian promoters will eventually see a dilution of their 45.3 per cent stake in the country’s largest mobile service provider.

The two had agreed to work towards a merger “as soon as it is practicable”. The control over both companies will not change hands, though Bharti will become the single largest shareholder in MTN.

The deal which was announced in May has already gone through two extensions, with the new deadline ending on September 30.

The South African government had said it would not compromise on maintaining the ‘South African character’ of MTN. As a compromise, it is agreeable to a dual listing of the companies, which would ensure that the company does not get delisted from the Johannesburg Securities Exchange. A DLC involves two listed companies, which have different sets of shareholders but who share ownership of a single business operation. Allowing DLCs would entail substantial changes in India’s foreign exchange and stock market laws, as well as full capital account convertibility, and require full Cabinet approval. – Business Standard

]]> 3921 2009-09-24 03:19:21 2009-09-24 10:19:21 open open govt-not-in-favour-of-dual-listing publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5671#comments wfw:commentRSS http://zikkir.com/business/5671/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5671 syndication_item_hash 1fd3ea65e36a35a0d9bf7797157defec Mixed response to Sebi’s proposed audit rules http://www.ethiopianreview.com/business/3920 Thu, 24 Sep 2009 10:20:39 +0000 http://zikkir.com/business/?p=5673 The proposed tightening of audit and disclosure norms, as mooted by a panel of the stock market regulator, Securities and Exchange Board of India (Sebi), has evoked a mixed response from companies and auditors.

In an attempt to avoid Satyam-like frauds, a Sebi panel has suggested rotation of audit partners signing the accounts and giving more teeth to the company’s audit committee (in clearing the selection of a CFO and ensuring the independence of the auditors), among other measures.

While some auditors say it provides a good framework to take governance seriously; others feel it is incremental and reactionary in nature, much like the US responded with the Sarbanes-Oxley Act after the collapse of Enron and Worldcom.

That’s fine, as a good legislation is about responding to a situation in a time-sensitive manner, feels Jamil Khatri, head of accounting services, KPMG. ‘‘It will bring much higher levels of vigilance, conscience around governance on how the audit committee or audit partners take their jobs. It provides a good framework for people to start behaving in a needed manner, to bring governance into focus,’’ said Khatri.

Take the proposal to make the audit committee responsible for the independence of the auditors. ‘‘If the audit committee is a rubber stamp, no amount of empowerment will help. But if you put more responsibility on the audit committee, they will become more vigilant,’’ said an auditor, who didn’t wish to be quoted on this aspect.

Typically, the big audit firms offer a range of services like tax audit and consultancy. An empowered audit committee may not allow non-audit services, both in terms of nature and volume of work. ‘‘It’s a good check to ensure that auditors remain independent and conflict-free, both in form and substance,’’ explained an auditor.

The proposal to rotate audit partners every five years will be a good check on auditors who may otherwise become complacent if they remain auditor for a company for life. In today’s environment, this will make the auditors more diligent. As companies have more complex operations, rotating partners is a better option than rotating audit firms.

But this could also restrict the growth of small audit firms, who have just two or three partners. They will be left with no option but to merge with other firms to acquire scale. Unless the proposal is implemented with prospective effect, which will give these firms time to organise, it could hurt their business. Many listed companies are still audited by small audit firms, though many bigger companies have moved to the big four.

But auditors feel it’s impractical to give the audit committee a say in the selection of the CFO. They feel this is not a constructive step, as the audit committee may end up being a rubber stamp. ‘‘They don’t have the competence to judge a CFO. It’s very judgemental, and they may not have the basis to doubt the competence of a CFO,’’ said a CFO.

Experts say nowhere else, not even in the US, does the audit committee appoint a CFO. ‘‘The CFO has to work with the CEO and others in the management. There’s no point in having a dysfunctional team. The audit committee cannot be the panacea for all ills. Then in the world nothing would have gone wrong,’’ said a Delhi-based auditor.

Rahul Roy, partner, Batliboi & Co, the audit arm of Ernst & Young, says that in many good companies the audit committee interacts with CFOs when he’s appointed. The audit committee has been made powerful, and vested with authority. “It’s like carrot-and-stick. If they don’t function, you can hold them responsible,’’ said Roy.

But auditors have welcomed the proposal whereby companies could early-adopt the IFRS, the new international accounting standards, before April 2011. KPMG’s Jamil Khatri believes this will provide momentum to the convergence, as many companies are likely to adopt it as early as by March 2010 or June 2010. The experience of the early-adopters could help others make the transition.

But many think the proposed changes in legislation are incremental and in response to the Satyam scandal. ‘‘It’s just a waste of time. Every time you have a scandal, the regulators jump in, and formulate laws. This is not the way to amend laws,’’ said a Delhi-based auditor, who didn’t wish to be quoted.

Auditors point out that some of the changes proposed by Sebi are already embodied in the Companies Act or other regulations. The Institute of Chartered Accountants in India, for instance, mandates rotation of audit partners every seven years. The Sebi panel has also suggested that listed firms must present audited balance sheets every six months against the current practice of doing it once a year.

‘‘A more frequent disclosure of the asset-liability position of companies would assist shareholders in assessing the financial health of the companies, thereby helping them in making informed investment decisions,’’ the panel said in a discussion paper on the Sebi website. ‘‘You have six-monthly audits, quarterly reviews, full-year audits and tax audits. We are getting into the situation of too many audits,’’ said an auditor.

The panel is also in favour of reducing the time available for companies to file their audited financial results from 60 days to 45 days for each of the first three quarters of a fiscal year. Auditors say a majority of the companies declare their quarterly results within a month and pushing the deadline by another 15 days won’t make a difference.

Seshagiri Rao, Joint MD & Group CFO, JSW Steel, feels the changes mooted won’t make a big difference to companies. ‘‘Some of them are compliance issues which you need to fulfil as per the listing agreement with the stock exchanges.’’ The scope of the audit committee is (already) very wide, and covers a wide range of area,” he said. “Even today, the appointment of the internal auditor is done by the audit committee.” – Business Standard

]]> 3920 2009-09-24 03:20:39 2009-09-24 10:20:39 open open mixed-response-to-sebi%e2%80%99s-proposed-audit-rules publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5673#comments wfw:commentRSS http://zikkir.com/business/5673/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5673 syndication_item_hash beaf67dc6280f541db88f040e4e9d2c1 ‘Pledging of shares allowed us to save Maytas Infra’ http://www.ethiopianreview.com/business/3919 Thu, 24 Sep 2009 10:23:37 +0000 http://zikkir.com/business/?p=5675 The Satyam scam will not deter the corporate affairs ministry from going ahead with its plans to de-regulate the corporate sector. The proposed Companies Bill, 2009, which is under the consideration of a parliamentary committee, will not have any major Satyam-triggered changes, according to Corporate Affairs Minister SALMAN KHURSHID. In an interview with Joe C Mathew, the minister gives an overview of his plans for the ministry and various autonomous institutions attached to it. Excerpts:

What is the state of the Satyam investigations?
We have finished our work. There are several agencies involved and we are just waiting for the prosecution to proceed. The CBI has almost completed the investigations related to the IPC (Indian Penal Code) violations and has filed a chargesheet. We are waiting for the Enforcement Directorate to say if they have to follow any trails of money siphoning or any other violations of the law. Instead of going in different directions, all these investigations must come and converge in one place with the CBI at the forefront. There is a co-ordination team, and now it’s just a matter of taking the next step. Investigations are more or less over. It’s just the question of getting it into court.

The ministry had asked the Institute of Chartered Accountants of India to file a report on the role of auditors in the Satyam scam. Is it ready?
They have a report on what has happened as far as their members are concerned and the disciplinary action that they are taking. There are other aspects, such as tightening the audit system which we still have to consider. They agree with what we think should be done to make these people turn accountable, to ensure something similar does not happen again, as that’s the larger issue. We are preparing for that in the Companies Bill 2009.

Does that mean you need to make more amendments to the Bill?
The Bill is with the (Parliamentary) committee and I cannot anticipate what ideas will come up before the committee. We have given it our best. We do want the committee to examine certain things. The lessons which we have learned (from Satyam) have confirmed our anticipation of what can go wrong, which we have already put in the paper (Companies Bill). It has confirmed our views on what necessary steps need to be taken for better corporate governance and we have put those steps into the bill. Some minor things may arise once it is before the committee.

The Bill was aimed at moving towards more de-regulation. So how can you say that the checks for Satyam-type frauds were anticipated?
That’s largely because that’s the basic shift from regulation to self-regulation, in terms of the democratic right of shareholders to choose what type of a company they want. The thematic structure we have worked upon allows that, but with complete disclosure and with information being made available. I don’t think that will change, though there may be some minor fine-tuning in response to what has happened due to the meltdown in the US and what happened at Satyam and so on. But I think that is best left to the observations of the committee.

What is your view on dual-listing of companies?
That has nothing to do with us (corporate ministry), but with the finance ministry and Sebi (Securities and Exchange Board of India).

But the finance minister had said the Companies Bill would have to be amended to make this happen?
It’s the other way round. They (finance ministry) have to make changes in their laws and then come to the corporate affairs ministry to change company laws. We won’t make any amendments to introduce dual-listing. If they find it is acceptable, or that we have reached a stage where it is possible, we will do it. But it is not on our table — nobody has made a request to us and we don’t come into the picture.

Do you think SFIO needs to be empowered? Should an SFIO report remain an internal document, or be disclosed?
The powers we think the SFIO (Serious Fraud Investigation Office) needs to investigate a case similar to Satyam’s have already been included in the Companies Bill 2009. The SFIO’s report is an internal document, because — let’s face it — the potential for damaging somebody’s reputation is very much there. So, before something becomes a public document through a court filing, no leakage of information should come from SFIO on the basis of its investigation. I think this is true in the case of any investigation procedure. We shouldn’t be seeking information before it (an investigation) comes to a final conclusion. Once concluded, it becomes a matter of public record and then, obviously, the court takes a view.

Do you really think we need a regulator to monitor our professional bodies, such as ICAI, ICSI and ICWAI?
The question is whether we need to take a fresh look at the structure of these institutions. Standards in education, regulating the profession — these are important aspects. Should all these be in one place or in two different places? What kind of distinctions should there be between these two? I think we have experiences from elsewhere in the world. And I would imagine that this is something on which there should be a discussion. We should examine every area and see how we can improve the system as it exists today. It would be unfair to take a suo motu decision unless we have a discussion on this.

Do we really have a roadmap for switching over to the international accounting standard, IFRS? Are only foreign companies to be included in the first phase?
The IFRS (International Financial Reporting Standards) convergence will take place in 2011. Accounts will have to be kept in that format from 2010, and we have a very clear deadline of November. But any talk about foreign companies having to follow the rules first is pure speculation. I don’t think we should seriously view the opinion of different members unless the three groups that are looking at it converge and give us a roadmap.

Post-Satyam, you had talked about the introduction of an early warning system… Is it independent auditing?
It’s not independent auditing. We are working with Sebi. You look at different sectors and companies of different size at random to see if you can get a format for feedback on various functions and various attributes of those companies. Can we intelligently read that to find some way in which we can draw some kind of measure of how to respond? When can we say a company is in a normal situation or under stress? Or if a company is doing well, is it in a state of buoyancy for the right reasons or for the wrong reasons? These are the things which have to be put together in a model, and for a model, you need to experiment on something.

So, it’s like trials for developing a medicine. Unless you have done some laboratory experiments, you can’t come up with a model. At this stage, when we say it’s a pilot project, we are trying to understand companies of different sizes and of different success rates and in different sectors. We need to get a model that can apply to everybody. When we start with a model, it has to be skeletal and we have to fill it in. We have a model with Sebi — let us see what we can develop.

Any timeline for this?
We are working every day, there is no timeline. We won’t take an incompetent model, saying: “We need to take it”. Internationally, we haven’t seen anything similar.

Do you think there is a need to have more checks and regulations on promoters’ stake and pledging of shares?
Well, pledging of shares is not a problem. Pledging of shares is what allowed us to save Maytas Infra. If they were not pledged, there wouldn’t have been a majority shareholder willing to acquire the company. Because they had shares and they were also a lender, they became the ideal person to protect the company and that’s a new model of saving a crisis-ridden company.

Is there any move to discourage registrations of multiple subsidiaries by companies?
In the provisions of the Companies Bill, 2009, you will see disclosure and consolidation of accounts and consolidation of financial statements. These are basically to give a fair and transparent picture of the structure of the company and its subsidiaries. It is all being provided very carefully. We can’t discourage people from forming companies — we need to encourage them. We have given them the option to form one-person companies, the LLP companies. So there is no question of discouraging them from forming companies. But there should be disclosure and there should be transparency, which is being assured — I hope — through the new legislation. – Business Standard

]]> 3919 2009-09-24 03:23:37 2009-09-24 10:23:37 open open %e2%80%98pledging-of-shares-allowed-us-to-save-maytas-infra%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5675#comments wfw:commentRSS http://zikkir.com/business/5675/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5675 syndication_item_hash d998bee880438549cbc127c06b80e73a Hindalco: A little more sheen http://www.ethiopianreview.com/business/3918 Thu, 24 Sep 2009 10:25:22 +0000 http://zikkir.com/business/?p=5677 1

The outlook for both aluminium and copper has improved but the company remains highly leveraged

Although aluminium prices are not expected to firm up as much as copper’s, the Hindalco stock has been a big gainer over the past weeks, rising 31 per cent compared with a 7 per cent move for the Sensex. Industry watchers say there is still some amount of over-capacity, resulting in a slower recovery for aluminium prices than that of copper.

Of course, Hindalco earns realisations that are way better than what the prices on the LME suggest and that’s because it sells more than half its domestic volumes in the form of value-added products.

Analysts point out that in 2008-09, the company’s average realisations fell by less than $100 a tonne compared with a fall of $396 a tonne on the LME. The Hindalco stock has also been moving up because Novelis, an unlisted subsidiary, has recovered over the past few months with profitability per tonne in the June 2009 quarter improving significantly.

According to Macquarie Securities, Novelis returned to normalised adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) per tonne of $179 in the June 2009 quarter from the low of $83 per tonne in the March 2009 quarter, driven by cost-cutting and an improved product mix.

With the company likely to sell better volumes, the brokerage believes the Ebitda per tonne could increase to $230 per tonne. What’s worrying about Hindalco is the fairly large quantum of debt of close to $4.5 billion at the consolidated level, indicating a debt-equity ratio of 1.4 times. The company is looking to remedy the situation through an infusion of equity — it reportedly plans to raise around $500 million through a combination of qualified institutional placement and GDR. But then, it also has some fairly large expansion plans.

According to the management, Hindalco plans to invest close to Rs 5,600 crore this year, and around Rs 11,000 crore in 2010-11 in both greenfield and other projects. It’s therefore possible that the fresh equity being raised would result in more borrowings. Therefore, the gearing may not improve in the near term.

Moreover, the equity base will see a dilution and it is possible the earnings too could get diluted both in the current year and the next year. At the current price of Rs 138, the stock trades at 13.5 times estimated 2010-11 earnings and is expensive. – Business Standard

]]> 3918 2009-09-24 03:25:22 2009-09-24 10:25:22 open open hindalco-a-little-more-sheen publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5677#comments wfw:commentRSS http://zikkir.com/business/5677/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5677 syndication_item_hash 4d23ff165314709cdb073eb652cab110 AI to convert 5 Airbuses into low-cost carriers http://www.ethiopianreview.com/business/3917 Thu, 24 Sep 2009 10:27:43 +0000 http://zikkir.com/business/?p=5679 Launch on 10 sectors in the winter schedule.

The National Aviation Company Ltd (Nacil), which runs state-owned Air India, is planning to convert five of its Airbus 320 planes into low-cost carriers under the Air India Express brand. The launches would be in the winter schedule and on 10 sectors.

A normal A320 has 124 economy class seats and 20 J-class seats. After the conversion, making it a full economy class plane, the number of seats increases to 168.

These converted aircraft, say sources, would fly on 10 sectors. These include flights to Sharjah from Hyderabad, Cochin, Trivandrum, Amritsar and Lucknow, Calicut-Dubai, Chennai-Kuala Lumpur, and Chennai-Colombo. An Air India spokesperson said the routes would be decided next week.

However, industry sources say Calicut-Dubai and Chennai-Colombo are routes where there is a demand for business class. Business class flyers account for 12 per cent of the revenue and many say the strategy to move more and more aircraft into a single configuration could have an adverse impact on the company’s total revenues from these flights.

A-I Express operates 193 weekly flights to 14 international destinations – Dubai, Sharjah, Abu Dhabi, Al Ain, Muscat, Salalah, Singapore, Kuala Lumpur, Bangkok, Bahrain, Doha, Kuwait, Colombo and Dhaka from 17 Indian cities.

Nacil had losses of Rs 5,000 crore on its books by the end of March 2009. It had also announced that it would launch A-I Express flights on the domestic routes. The launch was to happen in September, which has been deferred to October. The airline has debt of Rs 16,000 crore — Rs 10,000 crore high-cost debt and Rs 6,000 crore low-cost debt — and has requested the government to provide a letter of comfort to convert the high-cost debt to low-cost. The government has asked the airline to aggressively reduce costs and it may receive an equity infusion of Rs 2,000 crore by this year-end.

The airline had also ordered 111 aircraft (68 from Boeing and 43 from Airbus) to augment its fleet. The orders include eight B777-200LRs, 15 B777-300ERs, 27 B787 Dreamliners, 18 B737-800s, 19 A319s, 20 A321s and four A320s. Out of which the airline has received deliveries of 24 Boeing (five B777-200LRs, five B777-300ERs and 15 B737-800s) and 21 Airbus (12 A321s and nine A319s). – Business Standard

]]> 3917 2009-09-24 03:27:43 2009-09-24 10:27:43 open open ai-to-convert-5-airbuses-into-low-cost-carriers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5679#comments wfw:commentRSS http://zikkir.com/business/5679/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5679 syndication_item_hash 1d7f4c432a8657ad08088cd766b9a7fa Dell to get bigger footprint in India with Perot buy http://www.ethiopianreview.com/business/3966 Thu, 24 Sep 2009 10:32:15 +0000 http://zikkir.com/business/?p=5685 Dell’s acquisition of Perot Systems for $3.9 billion, say analysts, will give the former an enlarged footprint in India, as well as give both the companies a chance to diversify, while making Dell a services’ powerhouse, globally and in the country, too.

Perot Systems is relatively small — $2.7 billion in sales, whereas Dell is a much bigger, $54 billion company. Dell, in a statement, said this would mean a better positioning of the company. For, it can provide a broader range of IT services and solutions, extend the reach of Perot Systems’ capabilities and supply Dell computer systems to even more Perot Systems customers.

Dell’s service globally is largely centred on its (dwindling) hardware/infrastructure sales, while Perot Systems is a leader in infrastructure services and outsourcing. Dell needs to shore up its sagging revenues, while Perot acquires an enviable international client base.

Perot is not new to the Indian market. It first entered India in 1996 through a joint venture with HCL Technologies— HCL Perot Systems (HPS). The joint venture (JV) was formed with a combined capital investment of $4.5 million. For the first nine months of 2003, HPS reported $78.7 million revenue and $9.3 million net income. In 2003, due to some differences, the JV came to an end when Perot Systems bought HCL’s stake for $105 million.

Perot Systems, today, has close to 8,300 employees across six centres in India. The Bangalore, Noida and Pune centres cater to the application development and infrastructure services. Hyderabad, with around 80-100 people, offers engineering services. The company’s BPO operations are run from Chennai and Coimbatore and consists of over 4,000 people.

Dell has close to 12,000 people in India, spread across four segments, R&D, marketing, domestic sales and BPO. The company’s BPO centres are in four cities—Chandigarh, Hyderabad, Bangalore and Gurgaon.

“There will not be an immediate impact on India, as such deals take a lot of time to integrate. HP is a example. But from an India perspective, Perot was trying to get into the healthcare segment. It was trying to get into a much more niche segment than global players like IBM and Accenture that cater to all the verticals. Perot still does not have a huge footprint in India,” said Alok Shende, principal analyst, Ascentius Consulting.

Perot recently signed a Rs 90 crore, 10-year outsourcing deal with Max Healthcare. This agreement marked Perot Systems’ first full IT outsourcing contract in the Indian healthcare industry, as well as the company’s first India-based healthcare client. – Business Standard

]]> 3966 2009-09-24 03:32:15 2009-09-24 10:32:15 open open dell-to-get-bigger-footprint-in-india-with-perot-buy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5685#comments wfw:commentRSS http://zikkir.com/business/5685/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5685 syndication_item_hash ad24ecbcad074cd9bc239d623f3712aa Jamnagar SEZ exports to cross Rs 50,000 crore http://www.ethiopianreview.com/business/3965 Thu, 24 Sep 2009 10:33:50 +0000 http://zikkir.com/business/?p=5687 Coming out of the shadows after facing a slump in the global petrochemicals market, Reliance Industries’ (RIL) special economic zone (SEZ) in Jamnagar is likely to emerge as one of the largest SEZs in the country.

“Reliance SEZ is expected to export goods worth at least Rs 50,000 crore by March 2010. This will be the largest in terms of exports compared with any other SEZ in the country,” Reliance Jamnagar SEZ Development Commissioner Upendra Vasishth Business Standard.

In 2008-09, exports from all SEZs in India had been pegged at Rs 99,500 crore, of which exports from SEZs in Gujarat stood at Rs 26,000 crore. This financial year, exports from all the SEZs are poised to touch Rs 1,70,000 crore, according to Vasishth. The Rs 25,000-crore Jamnagar Export Refinery Project (JERP) located in the SEZ became functional on December 25, 2008. But it became fully operational only in July this year. Exports from the refinery have already touched Rs 18,000 crore till August 31.

JERP has added nearly 20 per cent to the country’s refinery capacity and has made RIL the largest crude oil refining company in India. The refining capacity of JERP is 29 million tonnes per annum and its exports are primarily aimed at the US and European markets. The refinery produces about 31 kilo tonnes a day (ktpd) of diesel, 25 ktpd of petrol, along with sulphur, pet coke, fuel oil and naphtha.

The polypropylene plant in the SEZ also has a capacity of about a million tonnes per annum and the plant is working full throttle to cater to heavy export orders, according to company sources.

Reliance is also in the process of setting up a C2/C3 cracker unit in JERP to produce downstream products like methyl ethyl glycol (MEG), low-density polyethylene (LDPE) and low-low density polyethylene (LLDP), sources said.

The global economic slowdown had hit RIL’s petrochemical business last year, forcing the company to cut 50 per cent of the production at its polypropylene plant located outside the SEZ in an export-oriented unit (EOU) facility. – Business Standard

]]> 3965 2009-09-24 03:33:50 2009-09-24 10:33:50 open open jamnagar-sez-exports-to-cross-rs-50000-crore publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5687#comments wfw:commentRSS http://zikkir.com/business/5687/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5687 syndication_item_hash c14591170e51446cc520ec88385c46de Finance co said to dupe 30,000 in TN http://www.ethiopianreview.com/business/3964 Thu, 24 Sep 2009 10:34:46 +0000 http://zikkir.com/business/?p=5689 People in Tamil Nadu have once again become the victim of a finance scam. It is alleged that up to 30,000 people from different parts of the state have lost Rs 420 crore to a Mumbai-based company, City Limouzines India Ltd.

Over the past two-three days, the Chennai City Police Commissioner’s office has been flooded with complaints from the angry people who got cheated.

“Over 1,000 complaints have been received and our initial investigation reveals that up to 30,000 people got cheated. A case against the company has been booked under Section 420 (cheating) of the Indian Penal Code and we are searching for Abdul Massod, who was running the business,” a senior police official said.

One of the victims, retired government employee Ramachandran S, claimed the company had issued preference shares in the name of City Realcom Limited and lured investors by asking them to invest a minimum of Rs 1.40 lakh with the promise that each one of them would get a monthly return of Rs 7,775 per Rs 1.40 lakh.

At the end of the 60-month scheme, the customer would get Rs 50,000 over and above the principal amount. The company paid interest every month for a year, but its cheques started bouncing since August.

“When we complained to the company, they cited different reasons and, for the last three days, the office of the company was closed in Chennai,” stated another customer.

Business Standard also made several attempts to meet the company’s representatives at its Kodambakkam office in Chennai, but it was found closed on all the visits.

The police official said the exent of the financial fraud was yet to be ascertained. “We are yet to verify the transaction books,” he said.

“The Economic Offences Wing of the Chennai City Police will investigate the case. They will raid the company’s office on Tuesday,” he added.

According to the police official, the Mumbai-based company, which was operating in the city for the past one year, had established its offices across the state.

“We are tracking the people who were working with the company across the state. We are also getting details about the number of branches and their customers,” the official said.

It was also learnt that the company was operating with a fake RBI licence since 2006. Its registered office is said to be located in Mumbai.

This is not the first time that such a case has come to light in Tamil Nadu. There have several complaints earlier too regarding alleged cheating by nidhi, chit and finance companies. Over 140 cases are pending with the Economic Offences Wing, Tamil Nadu police.

While the quantum of the total financial fraud committed in the state could not be ascertained, the size of the fraud in the top six cases (excluding City Limouzines) was Rs 1,168 crore (see table), with over 676,000 victims. – Business Standard

]]> 3964 2009-09-24 03:34:46 2009-09-24 10:34:46 open open finance-co-said-to-dupe-30000-in-tn publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5689#comments wfw:commentRSS http://zikkir.com/business/5689/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5689 syndication_item_hash acb21c616c21c1ae745c2d4b5e58e14e DC Design, Carnation tie up for mass segment http://www.ethiopianreview.com/business/3963 Thu, 24 Sep 2009 10:35:52 +0000 http://zikkir.com/business/?p=5691 Jagdish Khattar-promoted Carnation, a multi-brand car sales and servicing network, and the Dilip Chhabria-owned car design boutique DC Design have entered into a joint venture that will help the design studio offer its services to the mass segment at lower price points. Before this, DC’s services were restricted to high networth clients.

“This is a red letter day for us at DC Design. Our partnership with Carnation would broaden our design services to more customers in Carnation’s 11 outlets, which is expected to touch 30 soon,” DC Design founder Dilip Chhabria said.

According to the business model that was inked today, DC Design would provide the design for cars and luxury bus coaches, while the sales and servicing part for the designs will be taken care of by Carnation. However, this partnership does not mean DC Design will route all its businesses through Carnation.

“We will continue to offer B2B and B2C services outside this agreement,” Chhabria said. The joint venture would offer services for Toyota’s Innova, Tata Motors’ Nano, Honda’s City and Maruti’s Swift. Prices range between Rs 45,000 and Rs 4.95 lakh. Three more models — Toyota’s Fortuner, Force Motors’ Tempo Traveller and one from Skoda — would also be covered soon. Carnation CMD Jagish Khattar said future plans of the company to open multi-brand new car outlets would have to relooked in the aftermath of today’s agreement.

“With our partnership with DC Design, I think there’s more profit margins in selling new cars that bear DC’s design rather than just brand new cars,” he said. Carnation operates multi-brand car servicing centres, used car outlets, and offers car accessories.

DC Design said it would tap Carnation’s facilities once its tooling and fitting facility in Pune reaches full capacity. “We would train the multi-brand car service stations’ technicians on design aspects,” Chhabria said.

Mumbai-based DC Design is the only car design boutique in the country. The unorganised sector currently comprises car mechanics offering car fitments. No reliable figures are available pertaining to this market. “In the US and Europe, the customised car market is pegged between 2 and 5 per cent of the overall passenger vehicle segment. We expect India to assume this size. Last year, we posted a 40 per cent growth compared with the previous year,” Chhabria, who retrofits around 100 luxury cars every year, said.

The average cost of retrofitting a high-end luxury car with top-of-the-class features like LCD TV and leather seats is Rs 25 lakh. DC Design also retrofits Volvo buses, which costs about Rs 2 crore. Chhabria said over 90 per cent of his business comes from the coach business and very little from cars. The car design boutique is majority owned by Chhabria and a clutch of private investors.

“Financially, we would be self sufficient at this rate of business orders for the next five years. I have no plans to either raise funds or induct fresh investors,” Chhabria said. – Business Standard

]]> 3963 2009-09-24 03:35:52 2009-09-24 10:35:52 open open dc-design-carnation-tie-up-for-mass-segment publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5691#comments wfw:commentRSS http://zikkir.com/business/5691/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5691 syndication_item_hash fec94e74aa705701dd0377b27b4b0de3 Polaris may expand in Europe http://www.ethiopianreview.com/business/3962 Thu, 24 Sep 2009 10:37:04 +0000 http://zikkir.com/business/?p=5693 India’s financial technology firm Polaris Software Lab is planning to expand its footprint in the European markets beyond continental Europe and Sweden could be the base to cater to the large untapped region.

“We are interested in expanding our European market base and we see Sweden as a potential hub to cater to the northern, central and eastern Europe,” Polaris EMEA Chief Operating Officer Chander Singh said.

Polaris is considering joint venture alliances with local service providers, system integrators and others to be able to serve large customers in Sweden and other Baltic and Nordic countries. “In the next three years, revenue from Sweden and nearby Baltic countries and other Nordic nations should increase four-fold to be in the range of $10 million to $15 million,” Singh said.

The company, which earned $300 million revenue last fiscal, gets 85 per cent of its revenue from the banking, financial services and insurance (BFSI) vertical.

Polaris earns one-third of its revenue from the Europe-Middle-East-Africa (EMEA) region and expects to add up to 20 per cent of its revenue from Europe through the expansion planned.

“In 2 to 3 years’ time, if we set up our operations very strongly in this region we should be able to add 15-20 per cent of our total BFSI revenue from this particular part of the world,” he said.

Sources inform that the company already has Swedish bank SEB as its client and is in talks with several other banks in the north European country including some non-BFSI companies.

Polaris, which recently acquired US-based insurance product and component services company SEEC Inc, said it is considering further expansion in the insurance sector possibly through acquisition.

“We are interested in expanding our horizon into the insurance sector and if there are companies which are working in that segment we will be interested in acquiring them,” Singh said. – Business Standard

]]> 3962 2009-09-24 03:37:04 2009-09-24 10:37:04 open open polaris-may-expand-in-europe publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5693#comments wfw:commentRSS http://zikkir.com/business/5693/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5693 syndication_item_hash 02425871041665ae6c51d4e6b0d52c14 SPG Infrastructure applies brakes on SEZ for tyres, tubes http://www.ethiopianreview.com/business/3961 Thu, 24 Sep 2009 10:38:02 +0000 http://zikkir.com/business/?p=5695 Company may take up the project after six months to one year

SEZ developers in India seems to have turned cautious in implementing their projects after global economic crisis. SPG Infrastructure Pvt Ltd, a Siyaram Poddar Group company, has decided to defer its SEZ project in Kutch by six months to one year.

SPG Infrastructure had planned to set up a sector specific SEZ for transport engineering goods including manufacture of tyres and tubes at Bhuj of Kutch district in Gujarat. As per the memorandum of understanding (MoU) signed with the state government during Vibrant Gujarat Global Investor Summit in 2009, the company was to invest Rs. 865 crore for the project. The SEZ was expected to draw investments to the tune of Rs 5,000 crore, said state government sources privy to the development.

Last month, the company approached Board of Approval for SEZ asking the government body to withdraw in-principal approval granted to it for developing this SEZ. The BOA for SEZ approved company’s proposal.

When contacted, Rajiv Poddar, director, SPG Infrastructure, said, “The project has been deferred by six months to one year’s time. The export market has slowed down due to financial meltdown and the auto industry is also facing pressures.Considering this, the company chose to put the project on hold for some time”.

“There was no point in keeping in-principal approval for the SEZ. We will approach BOA for SEZ again with fresh proposal when we are ready to implement the project”, he added.

Essar Steel may also scrap its proposed steel SEZ at Hazira in the wake of decline in demand of steel in overseas market. Another steel giant Welspun Gujarat Stahl Rohren is considering shifting its existing unit outside the engineering SEZ at Anjar in Gujarat.Gujarat Growth Centre Development Corporation is also not going ahead with its SEZ for handicraft and artisan.

The in-principal approval granted to the company has been withdrawn by the government. Now the company is looking at modifying the SEZ project to make it commercial viable.

Gujarat Industrial Development Corporation (GIDC) has sought extension of the validity of formal approval for apparel sector SEZ at Ahmedabad and IT/ITES SEZ at Gandhinagar. Jubilant Infrastructure has also sought the same extension for its chemical SEZ in Bharuch. – Business Standard

]]> 3961 2009-09-24 03:38:02 2009-09-24 10:38:02 open open spg-infrastructure-applies-brakes-on-sez-for-tyres-tubes publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5695#comments wfw:commentRSS http://zikkir.com/business/5695/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5695 syndication_item_hash ec045743621e1eb107bd62a41e3f5963 Cochlear to launch technologies for hearing impaired http://www.ethiopianreview.com/business/3960 Thu, 24 Sep 2009 10:39:00 +0000 http://zikkir.com/business/?p=5697 A higher generation of implantable hearing technology is slated to be soon released in India by Cochlear Limited, engaged in cochlear and bone conduction implant technology.

The company is releasing three new technologies – Cochlear Hybrid, Cochlear Nucleus 5, and Cochlear Baha BP100 – designed for hearing impaired people across a wide spectrum.

“For more than 25 years now, Cochlear has focused on developing technologies which addressess different types of hearing loss. The three new offerings have been designed for unique needs of people suffering from partial deafness, moderate to profound deafness, and single-sided deafness. Each one is, more sophisticated and more feature rich than ever before, and that means a world of sound can be opened up to millions of people,” says Mark Salmon, president, Asia Pacific, Cochlear Limited.

Cochlear Nucleus 5 is thin, strong, stylish and an easy-to-use for both adults and children experiencing moderate to profound hearing loss. Cochlear Hybrid addresses distinctive needs of people with steeply sloping hearing losses in the high frequency region.

On the other hand, Cochlear Baha BP100 is supposed to be world’s first hi-tech direct bone conduction sound processor that can automatically process sound. Also, this device delivers more than 25 per cent improvement in speech understanding in noisy situations. It comes in a range of colours and also has a Europin audio connector for lifestyle accessories such as FM systems, MP3 players and Bluetooth adaptors. – Business Standard

]]> 3960 2009-09-24 03:39:00 2009-09-24 10:39:00 open open cochlear-to-launch-technologies-for-hearing-impaired publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5697#comments wfw:commentRSS http://zikkir.com/business/5697/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5697 syndication_item_hash 359881894d543153c2d13fb6145d2c43 Sterling plans Rs 150 crore expansion http://www.ethiopianreview.com/business/3959 Thu, 24 Sep 2009 10:40:01 +0000 http://zikkir.com/business/?p=5699 In sync with its aim of achieving a 1000-bed hospital status by the end of 2010, Sterling Hospitals, owned and managed by Sterling AddLife India Ltd, is planning to invest Rs 150 crore to expand its presence in Gujarat. The chain of corporate hospitals is planning to open centres in Surat, Rajkot, Bhavnagar and Vadodara, in various stages of completion, according to Rajiv Sharma, chief executive officer, Sterling Addlife India Limited.

Currently, Sterling has multi-specialty tertiary care hospitals in Ahmedabad, Vadodara and Mundra, two satellite centers in Kalol and Mehsana. Sterling has entered into an ‘owned & managed’ (O&M) agreement with a city-based renowned builder to develop a facility adjacent to its existing set up at Vadodara. This 100 bed facility, once ready, will help Sterling Hospital, Vadodara boost its capacity to 210 beds, making it one of the largest super specialty hospitals in Vadodara.

“The o&m agreement based expansion, which will help expand capacity and grow top line without significantly increasing its asset base. We are already running a hospital at Mundra under O&M agreement and would be actively looking at expanding through this model in future. We are planning to have more hospitals in Surat and two other important cities in the near future. While our Rajkot hospital is ready to start soon, the Bhavnagar hospital is under construction. The new facility at Vadodara will be completed by the end of 2010 and should be fully operational by 2011. Overall, we have made an investment of Rs 150 crore for the upcoming projects,” Sharma said. – Business Standard

]]> 3959 2009-09-24 03:40:01 2009-09-24 10:40:01 open open sterling-plans-rs-150-crore-expansion publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5699#comments wfw:commentRSS http://zikkir.com/business/5699/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5699 syndication_item_hash b05ec4a270d7ceb094387518299f70ff Core Wellness to set up 20 spas across India http://www.ethiopianreview.com/business/3958 Thu, 24 Sep 2009 10:41:04 +0000 http://zikkir.com/business/?p=5701 To set up 12 units in five-star hotels

Core Wellness Ltd plans to set up 20 spa facilities across the country over next 18 months, mostly through franchisee models.

Operated under the brand Sohum Spa and Wellness Sanctury, the company would set up atleast 12 units at five-star hotels while the rest would come up as stand-alone facilities, according to company officials.

Sohum Spa and Wellness Sanctury launched its stand-alone unit in Pune recently. It already operates spas at three hotels and one stand-alone facility is operational in Mumbai. “As the spa industry is catching roots in India, we are looking at launching 20 facilities in prominent Indian cities over next 18 months. apart from the first two facilities, rest would necessarily operate on franchisee model,” said Sohum Spas president Rajesh Srinivas.

A recent study by FICCI has suggested, the Indian wellness industry is growing at a rate of approximately 20 per cent annually and currently stands at Rs 1,500 crore. “We are looking at investing anything around Rs 2 crore to set up a unit of 3,000 squarefoot. The costs would remain same even if done through a franchisee,” Srinivas stated.

Apart from five-star hotels, the company is looking at hi-profile clubs in cities like Ahmedabad, Indore and Gwalior to have a setup each. “The first franchisee agreement should be signed soon and the unit would be operational in six months. The required workforce would be generated through a training academy set up by the company in Juhu in Mumbai,” added Core Wellness global operations director Beheram Mehta.

The spa business generated Rs 6 crore revenues during the 2008-09 financial year for the company while its other activities posted Rs 3.5 crore revenues over the same period.

“We expect to generate Rs 2.5 crore revenues from Pune unit annually. The facility should, hence break-even over 36 months,” Srinivas stated. – Business Standard

]]> 3958 2009-09-24 03:41:04 2009-09-24 10:41:04 open open core-wellness-to-set-up-20-spas-across-india publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5701#comments wfw:commentRSS http://zikkir.com/business/5701/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5701 syndication_item_hash 56fa33b820c9105383a5d591b8277d00 Dedicated container train to connect Haryana, JNPT http://www.ethiopianreview.com/business/3957 Thu, 24 Sep 2009 10:42:56 +0000 http://zikkir.com/business/?p=5703 Indian Infrastructure & Logistics Pvt Ltd (IILPL), a 76: 24 joint venture between Singapore-based APL Shipping Line and Rajiv Chandrasekhar-promoted Hindustan Projects & Engineers Pvt Ltd, is likely to start a dedicated container train from Samalkha in Haryana to Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai harbour and Mundra port by September 2010.

The company has already acquired 50 acres for the purpose and in the first phase, it is likely to invest Rs 270 crore.

IILPL provides customers a choice of integrated rail-road solutions by providing connectivity between ports and their hinterland through a portfolio of service products, including transport options by rail and a combination of rail-road.

It currently operates nine train services per week from various Inland Container Depots (ICDs) in Delhi-NCR region to the ports of Mundra and Nhava Sheva.

This include two reefer services per week from ICD Loni to Nhava Sheva. Already, the company has received permission from the Ministry of Railways for starting up a cargo train from Samalkha to JNPT and Mundra (Near Kandla) on the lines of CONCOR (container corporation). Speaking to Business Standard, IILPL Managing Director Amitabh Chaudhary said, “We have plans to start a dedicated container train from Samalkha (Haryana).

With this facility, we are going to cater to the areas of Samalkha, Panipat, Kaithal, Jind, Hissar, Rohtak, Bhiwani, Yamunanager, etc. Besides, we also have plans to set up inland container depot (ICD) facilities at Samalkha.

The total project cost would be to the tune of Rs. 270 crore.”

“The land has already been acquired for the project and if everything goes well, we would be able to commence operations from mid of next fiscal year,” he added.

The ICD project is expected to benefit the exporting community of Panipat and its surrounding areas. The company’s General Manager (Sales and Marketing) Animesh Kumar said, “We see a potential of 4,000 containers per month after one year of the commencement of our operations,” he said.

Also, the commencement of the operations from the area will help the exporters in to save input cost as well as help in reducing the time.

Currently, the quantum of exports from Panipat alone is over Rs 2,500 crore.

Besides this project, the company also expects that it would be able to commence operations on routes like Ludhiana to JNPT and Mundra (for exports) and also on domestic routes like Delhi-Mumbai and Delhi-Mundra by fiscal year 2009-10. – Business Standard

]]> 3957 2009-09-24 03:42:56 2009-09-24 10:42:56 open open dedicated-container-train-to-connect-haryana-jnpt publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5703#comments wfw:commentRSS http://zikkir.com/business/5703/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5703 syndication_item_hash 72993b40cfa7d4b26e2f4752525a19b6 Uttarakhand builders buoyant on festival season http://www.ethiopianreview.com/business/3956 Thu, 24 Sep 2009 10:43:59 +0000 http://zikkir.com/business/?p=5705 The heavy slump in the construction business since early 2008 may have failed to recover fully. But builders in Uttarakhand said the market sentiments were likely to improve and spur demand in the festival season.

They are now focusing more on residential business since there is hardly any improvement in the commercial space.

With interest rate cuts by leading banks failing to boost real estate business in the hill state, which has taken a beating in the wake of the global recession and severe liquidity crunch, top banks like State Bank of India (SBI) and ICICI have already launched campaigns to cash in on the festival season.

“We are absolutely positive on the festival season,” said Maheep Kumar, DGM, SBI Dehra Dun, after launching the festival scheme ‘your dream home with SBI loan’.

Experts in the business said that new investments were not pouring in the hill state as far as the real estate business was concerned.

Only selected players have mustered courage to start new residential ventures in Dehra Dun. Commercial activities like five-star hotels continue to languish as a series of such projects are still hanging fire.

Prior to the recession, new amendments in land laws, high stamp duty and circle rates brought by the former B C Khanduri government had virtually put a dampener on the property business in the hill state.

According to official estimates, there has been 27-30 per cent fall in the revenue from stamp duty and registries.

In 2006-07, the revenue had jumped to Rs 342 crore but last year it fell to Rs 231 crore. This year also, there is hardly any recovery.

Due to the slowdown, property rates fell by 5-10 per cent. Despite this, there are no buyers in the market.

Virtually, people are keeping their fingers crossed with the hope that there would be a sharp fall in the property rates.

The slump began last year when the Bharatiya Janata Party (BJP) government brought amendment in land laws that restricted outsiders from buying more than 250 sq mt of land. The move brought the thriving real estate business to a near halt.

Besides the tough land laws, the government also sharply increased stamp duty and circle rates that adversely affected the property business.

But last year, the government implemented the master plan of Dehra Dun and had cut 1 per cent in stamp duty rates in its bid to boost real estate business in the state.

But the move failed to improve the situation. Again this year, new Chief Minister Ramesh Pokhriyal Nishank reduced the stamp duty on agreement to 4 per cent in order to spur growth and announced other sops that would boost the real estate business. – Business Standard

]]> 3956 2009-09-24 03:43:59 2009-09-24 10:43:59 open open uttarakhand-builders-buoyant-on-festival-season publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5705#comments wfw:commentRSS http://zikkir.com/business/5705/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5705 syndication_item_hash 4305c52a2c35b65a04a02cb2e1a5b2a3 RBI or Competition Comm? http://www.ethiopianreview.com/business/3954 Thu, 24 Sep 2009 10:46:14 +0000 http://zikkir.com/business/?p=5709 The Reserve Bank contention that mergers and acquisitions among banks should to left to it, and not the newly functional Competition Commission, is valid and the necessary changes in the law or rules should be made. Banks are different from other businesses. After last year’s financial crisis, it has become even clearer than before that once financial institutions get too big, they cannot be allowed to fail. In India, the practical reality that has emerged over the post-Independence period is that no commercial bank is allowed to fail and, when a bank has been seen to be in difficulty, the RBI has organised a forced marriage with a stronger bank. There can be no question that the RBI must retain this power to act in this fashion, with the necessary speed, when it perceives systemic turbulence emerging from the weakness of a particular bank. The most that can be said in favour of a role for the Competition Commission is a post facto reference to examine the issue from the competition angle, but once the deed has been done there is no practical way in which it can be undone. So, even a post facto review would serve little purpose. In theory, the Competition Commission could have the power to undo a bank merger if it finds that it has produced anti-competitive results. But this is simply not a realistic proposition.

There might however be a case for viewing crisis action as being different from strategic mergers and acquisitions. If banks are not allowed to fail, they come close to being utilities which need much greater supervision than ordinary companies, and such supervision is already a fact of life. But if an entire industry is populated by such semi-utilities, the matter of ensuring competition for the greater good of the customer becomes relevant. In this context, it is necessary to look at the issue of consolidation among public sector banks, supported by the finance ministry for long but held in abeyance mainly because of the opposition of the trade unions. If such mergers are not crisis-driven, should they be referred to the Competition Commission first? The Commission can be guided by the fact that in mature sectors in developed countries there is intense competition even if the space is dominated by fewer than half a dozen players. So any targeting of absolute numbers in terms of players and market share should be avoided.

Since the 1990s, a strong dose of competition has been introduced by the new private banks. Many customer-centric improvements plus the large scale introduction of information technology by public sector banks have come in response to the rapid growth of private banks with their superior customer service and product offerings. So the view can be taken that mergers to promote consolidation, as different from those mandated in order to ward off a crisis, can be referred to the Competition Commission for prior approval, and the latter would be expected not to adopt a mechanistic approach. – Business Standard

]]> 3954 2009-09-24 03:46:14 2009-09-24 10:46:14 open open rbi-or-competition-comm publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5709#comments wfw:commentRSS http://zikkir.com/business/5709/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5709 syndication_item_hash 84329d37123a7f8efa5ac01ad77c519d Too few good men http://www.ethiopianreview.com/business/3953 Thu, 24 Sep 2009 10:48:30 +0000 http://zikkir.com/business/?p=5711 If Kaushik Basu of Cornell University is chosen as the next chief economic advisor in the finance ministry, and Subir Gokarn of Standard and Poor’s as deputy governor in the Reserve Bank of India, the government would have made a significant departure from the convention of filling such top-level positions with economists who have prior experience of working within the government system. The last time the government chose a chief economic advisor from outside its band of economists was four decades ago, when Ashok Mitra was appointed to the job. Since then, all chief economic advisors have had prior experience within the government system in different departments, ministries and organisations. In the case of the Reserve Bank, there are more recent precedents for inducting economists from outside the government system, one example being C Rangarajan who was brought in from the Indian Institute of Management at Ahmedabad.

The lack of prior government experience need not be a handicap. It may even be an asset, because it might bring in new thinking. Economists like Ashok Desai, Parthasarathi Shome and Subhashis Gangopadhyay have been lateral entrants in the finance ministry at different points over the last couple of decades, and they did make a difference. They may have found the going tough (as Nandan Nilekani, who has just taken charge of the Unique Identity Authority of India with similar lack of government experience, might testify), for the system does not easily adapt to “outsiders”. But there is no doubt that such lateral entrants bring a whiff of fresh air into a hide-bound system.

The other way to look at this is that the government system is no longer throwing up competent economists who can fill posts like that of chief economic advisor. There was a time when all the key economic ministries could boast of well-known economists on their staff. In the 1990s, Shankar Acharya in finance, Vijay Kelkar in petroleum, Rakesh Mohan in the industry ministry and Jayanto Roy in commerce, would in their different ways contribute to a formidable line-up of economists who could function as the government’s economic think tank. Today, following the superannuation of Arvind Virmani as chief economic advisor and the departure of Rakesh Mohan as deputy governor, the cupboard is pretty bare.

It is likely that the market for economists has widened and become more attractive outside the government. This may not have been so even a decade or two ago. Economic reforms and a vibrant corporate sector have also had a role to play in the government’s inability to attract and retain qualified and high-quality economists. What may have made a difficult situation worse is the government’s decision to reserve more posts for a cadre like the Indian Economic Service, which has become a poor cousin for smart young economists who would aspire above all to get into the Indian Administrative Service, and failing that a variety of other civil services. This has made lateral induction at the economic advisor level next to impossible, and the cadre economists are simply not good enough for the top jobs. – Business Standard

]]> 3953 2009-09-24 03:48:30 2009-09-24 10:48:30 open open too-few-good-men publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5711#comments wfw:commentRSS http://zikkir.com/business/5711/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5711 syndication_item_hash 87eff74cf12bd1c7b5b0a85304a09010 Martin Feldstein: The G-20’s empty promises http://www.ethiopianreview.com/business/3952 Thu, 24 Sep 2009 10:50:27 +0000 http://zikkir.com/business/?p=5713 It would be futile to believe G-20’s promises to rein in monetary and fiscal policies

Talk about “exit strategies” will be high on the agenda when the heads of the G-20 countries gather in Pittsburgh a few days from now. They will promise to reverse the explosive monetary and fiscal expansion of the past two years, to do it neither too soon nor too late, and to do it in a coordinated way.

These are the right things to promise. But what will such promises mean?

Consider first the goal of reversing the monetary expansion, which is necessary to avoid a surge of inflation when aggregate demand begins to pick up. But it is also important not to do it too soon, which might stifle today’s nascent and very fragile recovery.

But promises by heads of government mean little, given that central banks are explicitly independent of government control in every important country. The US Federal Reserve’s Ben Bernanke, the Bank of England’s Mervyn King, and the European Central Bank’s Jean-Claude Trichet will each decide when and how to reverse their expansionary monetary policies. Bernanke doesn’t take orders from the US president, and King doesn’t take orders from the British prime minister (and it’s not even clear who would claim to tell Trichet what to do).

So the political promises in Pittsburgh about monetary policy are really just statements of governments’ confidence that their countries’ respective monetary authorities will act in appropriate ways.

That will be particularly challenging for Bernanke. Although the Federal Reserve is technically independent and not accountable to the President, it is a creation of the US Congress and accountable to it. Because of the lagged effects of monetary policy and the need to manage expectations, early tightening by the Fed would be appropriate. But the unemployment rate could be over 9 per cent — and possibly even more than 10 — when it begins to act. If so, can we really expect Congress not to object?

In fact, Congress might tell the Fed that it should wait until there are clear signs of inflation and a much lower unemployment rate. Because Congress determines the Fed’s regulatory powers and approves the appointments of its seven governors, Bernanke will have to listen to it carefully — heightening the risk of delayed tightening and rising inflation.

Reversing the upsurge in fiscal deficits is also critical to the global economy’s health. While the fiscal stimulus packages enacted in the past two years have been helpful in achieving the current rise in economic activity, the path of future deficits can do substantial damage to long-run growth.

In the US, the Congressional Budget Office has estimated that President Barack Obama’s proposed policies would cause the federal government’s fiscal deficit to exceed 5 per cent of GDP in 2019, even after a decade of continuous economic growth. And the deficits run up during the intervening decade would cause the national debt to double, rising to more than 80 per cent of GDP.

Such large fiscal deficits would mean that the government must borrow funds that would otherwise be available for private businesses to finance investment in productivity-enhancing plant and equipment. Without that investment, economic growth will be slower and the standard of living lower than it would otherwise be. Moreover, the deficits would mean higher interest rates and continued international imbalances.

In contrast to monetary policy, the US president does have a powerful and direct impact on future fiscal deficits. If the presidential promise to reduce the fiscal deficit was really a commitment to cut spending and raise taxes, we could see today’s dangerous deficit trajectory be reversed.

Unfortunately, Obama shows no real interest in reducing deficits. The centrepiece of his domestic agenda is a healthcare plan that will cost more than a trillion dollars over the next decade, and that he proposes to finance by reducing waste in the existing government health programmes (Medicare and Medicaid) without reducing the quantity and quality of services.

A second major policy thrust is a cap-and-trade system to reduce carbon emissions. But, instead of raising revenue by auctioning the emission permits, Obama has agreed to distribute them without charge to favoured industries in order to attract enough congressional votes. Add to this the pledge not to raise taxes on anyone earning less than $250,000 and you have a recipe for large fiscal deficits as long as this president can serve. I hope that the other G-20 leaders do a better job of reining in their budgets.

Finally, there is the G-20’s promise to reduce monetary and fiscal excesses in an internationally coordinated way. While the meaning of “coordinated” has not been spelled out, it presumably implies that the national exit strategies should not lead to significant changes in exchange rates that would upset existing patterns of trade.

In fact, however, exchange rates will change — and need to change in order to shrink the existing trade imbalances. The dollar, in particular, is likely to continue falling on a trade-weighted basis if investors around the world continue to set aside the extreme risk-aversion that caused the dollar’s rise after 2007. Once the Chinese are confident about their domestic growth rate, they can allow the real value of the renminbi to rise. Other exchange rates will respond to these shifts.

In short, it would be wrong for investors or ordinary citizens around the world to have too much faith in G-20’s promises to rein in monetary and fiscal policies, much less to do so in a coordinated way. – Business Standard

]]> 3952 2009-09-24 03:50:27 2009-09-24 10:50:27 open open martin-feldstein-the-g-20%e2%80%99s-empty-promises publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5713#comments wfw:commentRSS http://zikkir.com/business/5713/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5713 syndication_item_hash 2b5dca27b6fe637d15863816a7faab6f Surinder Sud: Cornucopia http://www.ethiopianreview.com/business/3951 Thu, 24 Sep 2009 10:51:41 +0000 http://zikkir.com/business/?p=5715 Baby corn, a specialty maize, has huge potential to emerge as a money spinner for farmers. There are several reasons for that, apart from the obvious ones like the high prices and rapidly growing demand for baby corn in the domestic and export markets. For one, the baby corn crop takes very little time to grow, making it possible to raise three to four crops in a year on the same land.

Besides, the crop’s stalks and leaves, being nutritious animal feed, can provide fodder for cattle throughout the year. Moreover, several vegetable and pulse crops, as well as flowers can be grown in between the rows of baby corn as intercrops for additional income. There is also scope for value addition of baby corn through processing and preservation.

Indian maize scientists have identified plant varieties and hybrids that are suitable for baby corn production and have drawn up a package of agronomic practices for growing them.

Baby corns are essentially young, small and slender unfertilised cobs of maize that are tender enough to be eaten raw as well as in cooked form, or can be preserved for deferred consumption. These cobs are usually plucked from the plants within one to three days of the emergence of cob silk when this hair-like growth is just 2 to 3 cms long. The baby corn crop normally completes its life cycle in 50 to 55 days.

The head of the New Delhi-based Directorate of Maize Research, Dr Sain Das, maintains that India can not only be a major producer of baby corn but also an exporter because of the low cost of production and strategic location of the country to cater to the export markets in the European and Gulf nations. At present, Thailand is the world’s top producer and exporter of baby corn. India has the potential to compete with it.

In 2008, India exported over 267 tonnes of baby corn worth $1 million. These exports are expected to grow to over 750 tonnes, worth $3 million, in 2009.

A booklet on the production technology and value addition of baby corn, brought out by the Maize Research Directorate, points out that a single crop of baby corn, involving an expenditure of Rs 15,420 a hectare, can yield a gross return of over Rs 67,500 per hectare, including the value of fodder.

This estimation is based on the assumption that one hectare’s produce of around 12 quintals of baby corn can be sold for around Rs 60,000 at the rate of Rs 5,000 per quintal (Rs 50 per kg), and about 150 quintals of fodder for Rs 7,500 at Rs 50 per quintal. A farmer growing three to four crops of baby corn can, thus, easily earn annually between Rs 1,00,000 and Rs 2,00,000 per hectare.

Though baby corn so far have only a small, albeit niche, market in the country, confined largely to big cities, their demand is set to grow fast in future due to changing tastes and realisation of the better food value of this culinary delicacy. Their nutritional quality is deemed superior to many seasonal vegetables because of their rich content of vitamins, iron and notably, phosphorus.

Besides, they are a good source of dietary fibrous protein and are easy to digest. Apart from this, even if pesticides are sprayed on the crop, they cannot penetrate the natural vegetative wrapping of the cobs, making baby corn safe to eat.

Maize hybrid HM4, developed by the Haryana agricultural university at its Karnal research centre, has been found to be a very good variety for producing baby corn in the northern region, especially in and around the National Capital Region.

It has a desirable cob length, an attractive cob colour and a sweet taste besides a high yield of 12,015 quintals of baby corn a hectare. Suitable high-yielding baby corn varieties are available for growing in other regions of the country as well.

However, marketing is still a problem for baby corn especially in the areas away from big cities. A baby corn-based industry to produce value-added products is also yet to come up in a big way. At present, only one or two units at Panipat in Haryana are producing baby corn pickle for export.

Once more industrial units come up for canning, dehydration, freezing and processing of baby corn, the cultivation of this highly lucrative crop is bound to get a big boost. – Business Standard

]]> 3951 2009-09-24 03:51:41 2009-09-24 10:51:41 open open surinder-sud-cornucopia publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5715#comments wfw:commentRSS http://zikkir.com/business/5715/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5715 syndication_item_hash c248d8c4185f992977c443597030ca25 Boom-time echoes http://www.ethiopianreview.com/business/3950 Thu, 24 Sep 2009 10:53:03 +0000 http://zikkir.com/business/?p=5717 Yet more M&A, rallying stocks markets and booming demand for superyachts and luxury property. Against that backdrop, it should be little surprise that Breakingviews’ index of economic newsflow revisited its series high last week. The bounce to 2.7 from the previous week’s 2.3 sees the Breakingviews.com Economic Spot-check (formerly the Green Shoots Spotter) pointing firmly towards “Stability”.

The tone of discussion among central bankers, policy makers, investors and corporate chieftains has shifted from questioning whether a recovery is underway to debating the pace and durability of the upturn. But this is still a troubled world and there remains plenty of bad news around. More items qualified as evidence of “Recession Blues” than any other category. It just happens to be the case that the quantity of middling and mildly encouraging news is also abundant.

The mood is reinforced by buoyant financial markets. It is hard to know how much of the positive sentiment in the world is simply the product of a self-reinforcing feedback loop. October will be a crucial test. Investors expect it to be a tricky month — because it so often is. For now, the party in the markets continues. – Business Standard

]]> 3950 2009-09-24 03:53:03 2009-09-24 10:53:03 open open boom-time-echoes publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5717#comments wfw:commentRSS http://zikkir.com/business/5717/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5717 syndication_item_hash a66e8541c28db37948a92002d44418fb Tea with BS: Jairam Ramesh http://www.ethiopianreview.com/business/3949 Thu, 24 Sep 2009 10:54:27 +0000 http://zikkir.com/business/?p=5719 While trying to revamp the environment ministry, he has ruffled more feathers with his non-stop flow of irreverent one-liners than Shashi Tharoor did with his ‘holy cows’ tweet.

When we meet him, Jairam Ramesh is reading the first of the 100 or so letters he gets every day. A Ms Melanie Syms from Wales has written to ‘Mr Paryavaran Bhawan, Environment and Forest Ministry’, a laboriously handwritten epistle on a piece of notepaper. This, and a sudden increase in the volume of email (they have gone up from 300 every day to around 400), is the result of a BBC documentary on India’s environment, he says. Ramesh replies to every letter and his signature colour (no pun intended) is pink, says Saubhadro Chatterji.

One of the most accessible and tech-friendly ministers on Team Manmohan (he’s a B Tech, MS and educated at IIT Bombay, Carnegie Mellon University and MIT), this Kannadiga

Rajya Sabha MP elected from Andhra Pradesh has acquired a reputation of having the ‘foot-in-the-mouth’ disease (he vies with colleague Shashi Tharoor for that honour). While the junior minister of trade (and later power) in UPA-I, on the eve of an important visit by the prime minister to Brazil, Ramesh put the foreign ministry in a spot of bother when he wondered about the utility of a trade pact with a country so far away with India. This time, it is his remarks on Bhopal. He held a handful of soil on the site of the Union Carbide plant and said: “Look, I’m holding this and I’m still alive”. “That backfired,” he concedes sheepishly, “you can’t imagine how many email I received after that, slamming me for the insensitivity of my remarks. I’ve learnt my lesson and will be more careful next time.”

He joined as the minister of state (independent charge) in the Environment and Forest Ministry with the mandate of making it accountable and transparent. Ramesh’s first step towards transparency has been removing the wooden doors and replacing them with glass. “This ministry was known as ATM. You pressed the right buttons and you got the clearance for your project. I want to make this an Accountable and Transparent Ministry.”

Ramesh doesn’t have a 100-day agenda. “But during the first 100 days, I tried to create systems that will live on even when I am not there: An institutional set up. This is a Herculean job. And in India, everyone thinks he is an environmentalist,” he says while managing calls on his two Nokia phones.

If an activity is under-funded, it’s under-managed. If an activity doesn’t get national funding, it won’t enter the national consciousness. If you can’t bring public funding to a critical level, you are not going to get managerial talent. This is what Ramesh decided to tell Finance Minister Pranab Mukherjee when he met him before the general budget (Ramesh also loves to mimic Mukherjee and does it to perfection). He told the FM, “Dada, I need some money for Zoological Survey of India (ZSI) and Botanical Survey of India (BSI).” “How much do you need?” Mukherjee asked “I need at least Rs 15-20 crore for each of these institutes,” Ramesh replied. “Joyraam, this is the problem. Where is the money?” Mukherjee asked.

Ramesh, who had worked with Mukherjee as his Officer on Special Duty in the Planning Commission earlier, played his trump card: “Dada, both these institutes have their headquarters in Kolkata”. All that the FM said, beaming, was: “Oh, very good, very good.”

“In this budget I got Rs 15 crore each for the ZSI and BSI. I got another Rs 15 crore for Geological Survey of India. Incidentally, its headquarters too, is in Kolkata,” Ramesh grins. The prime minister was instrumental in allocating Rs 8,400 crore for the Environment and Forest Ministry in this year’s budget, up from Rs 3,600 crore in the 2008-09 budget, he adds.

His tea — jasmine tea — lay cooling. He is too engrossed explaining the key debate in the environment ministry — growth versus environment protection. Balancing the two is Ramesh’s trickiest task. Both need delicate negotiation and are extremely important milestones for India’s rise as a global power.

“As the environment minister, my main job is to ensure that two pieces of central legislation, the Forest Conservation Act and the Environment Protection Act are implemented properly. I know many people don’t like these laws. They see them as impediments and try to bypass them. But I have to strike a balance, transparently. There are some projects where I’ve put my foot down. But last week I had to clear a road project in Arunachal Pradesh, for strategic reasons. I know it will destroy a large forest area in Arunachal Pradesh but I had to settle on some safeguards,” Ramesh says.

He meets green activists regularly and even takes tips from them on critical issues: “My doors are always open to people like Sunita Narain, Ashish Kothari and Medha Patkar. I want to engage them. Pink papers like Business Standard will only think about growth. But I need to take others into confidence”.

Unlike in the case of other UPA ministers who have a picture of the prime minister and/or Sonia Gandhi, the most prominent picture in Ramesh’s room — apart from Tanjore paintings of south Indian gods and a Buddhist thangka — is one of Mahatma Gandhi and Jawaharlal Nehru involved in an intense discussion. But for Ramesh, the idol is Indira Gandhi. “Just look at what she did. Had she not been the prime minister, India’s forests would not have survived, yaar!” The key strategist of the Congress party during elections lists Indira Gandhi’s achievements: She saved Silent Valley and protected the rain forests of Kerala, ensured legislation like the Water Pollution Act, the Air Pollution Act and the Forest Conservation Act. “Even Project Tiger was her brainchild. If we have tigers left today, it is because of her,” Ramesh says.

In his quest to make the ministry more effective and transparent, Ramesh has found some inherent structural problems. “There is a fundamental dichotomy. We have laws that are made by the Centre but the implementing agencies are the states and the local administration. This makes our job more difficult. Still I’ve managed to take some steps: I’ve de-notified mining in forest areas.” This has had several state governments rushing to Delhi to intercede because important interests are involved but Ramesh is not budging.

Jairam was Shashi Tharoor’s debating partner at St Stephens College and, along with Nandan Nilekani, debated on topic as outlandish as “Why there should be a Friday”. Now, as minister, there are things he finds even more absurd: “When I raise matters with my officers, they say half of them are sub-judice; and the other half, the officers want make sub- judice as soon as possible!”

Ramesh realises the importance of reliable back-room office staff: He has a team of three young men, fresh from college. They worked with him in the party’s ‘war room’ before the 2009 Lok Sabha elections to implement electoral strategies. And now they handle a part of his load.

The minister has set the next target: To revamp the ministry’s website. But this ‘techno-love’ often lands him in trouble as well, as happened when the prime minister was wondering how the details of a volatile cabinet discussion over austerity measures were leaked to the newspapers.

“M K Narayanan (National Security Advisor) went and told the PM that I had leaked the news. I asked Narayanan how he reached that conclusion. He said he saw me fiddling with my mobile in the cabinet meeting. I was actually switching off my mobile at that time,” Jairam laughs before turning to another letter. – Business Standard

]]> 3949 2009-09-24 03:54:27 2009-09-24 10:54:27 open open tea-with-bs-jairam-ramesh publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5719#comments wfw:commentRSS http://zikkir.com/business/5719/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5719 syndication_item_hash 196670f9d107f92788e0ce09b4c8018c Ajai Shukla: Worried dragon; outraged elephant http://www.ethiopianreview.com/business/3948 Thu, 24 Sep 2009 10:55:18 +0000 http://zikkir.com/business/?p=5721 The recent focus on the Line of Actual Control (LAC) between India and China has shed little light on what is actually going on there, although something certainly is. Clearly, though, little has changed since 1962 in the way we react as a people to any perceived threat: with neither information, analysis, nor military resources, we clamour for action, stern and immediate!

Neither the fulminating television newscasters, nor the millions who tune in to watch them, nor the thousands who send in outraged SMSs, letters and emails, have asked an important question: is Beijing raising the temperature on the LAC, howsoever slightly, because it worries about something that India is doing? Does our obsessive insecurity prevent us from seeing that China might have insecurities of its own? What might those concerns be?

If our government has thought over the matter, it is not telling. Pooh-poohing suggestions of heightened tension on the border, India’s foreign minister has inelegantly described the LAC as “one of the most peaceful boundaries that we have had” (sic). New Delhi is deflecting attention from the border and nobody is wondering why.

What is generating those wisps of smoke, admittedly faint, emanating from the dragon’s nostrils?

To put things in context, it must be remembered that the 16 years since the “Peace and Tranquillity Agreement” of 1993 have not been entirely tranquil. Patrols from both sides have routinely muscled through to what they respectively claim as the LAC. This, however, evokes only pro forma complaints during border meetings. In places like the disputed “Finger Area” in Sikkim, Chinese patrols have actually pointed (but not fired) weapons at Indian jawans. Indian patrols, bound by tighter guidelines, wave banners at the Chinese on which requests to vacate Indian territory are emblazoned in Chinese characters. The restraints irritate our hot-blooded junior officers, but that’s life on the LAC.

Today Chinese patrols are bullying Indian graziers, and sending Tibetan graziers into pastures that they have ignored for 15 years. But it is hardly time to press panic buttons, or declare a media war on China.

Assuming that the world’s China watchers are right, and that Beijing’s economic stakes in the rubric of “The Peaceful Rise of China” hold back its historical expansionism, the LAC foot-stamping can hardly be a precursor to hostilities with India. But the shift in China’s behaviour must certainly be examined.

Recent years have seen two major changes along the LAC. The first, on the Tibetan side, is China’s development drive to transform local economies. Most Tibet-watchers believe that China’s frenetic infrastructure building is aimed primarily at winning over recalcitrant Tibetans; a secondary aim is to be able to move troops around Tibet swiftly to quash outbreaks of rebellion; and a side benefit is the ability to move forces quickly to defend Chinese territory.

But, viewed from the Indian side, China’s infrastructure drive is a serious threat, each road and railway line a dagger thrust forward into India’s heart. China’s five highways running to the border, soon to be supplemented with railway lines, allow the People’s Liberation Army (PLA) to build up forces quickly at a chosen point on the LAC to overwhelm local Indian posts well before reinforcements can be brought in along India’s creaky border roads.

India’s failure to build matching infrastructure has two causes: the difficult terrain on the Indian side, and the government’s slothfulness in planning and executing projects. But New Delhi makes up by its willingness to deploy an increasing number of jawans on the Himalayan watershed. India is raising two more divisions in the northeast, some 40,000 jawans more along the LAC, a provocative act in China’s eyes. Originally planned as a low-key reinforcement, the cat was let out of the bag by Arunachal Pradesh governor General JJ Singh, who announced to the people of his state that India was raising two new divisions to protect them from the Chinese.

India’s force build-up is the second big change on the LAC. In the lexicon of geo-strategy, Beijing alleges that New Delhi is unilaterally altering the status quo in a disputed border region. “We’re only building roads for the benefit of our border people,” the Chinese strategists argue, “but India is building up forces.”

A third change is India’s new boldness in allowing the Dalai Lama to go ahead with a visit this November to the monastery town of Tawang. China worries that India’s influence over the Dalai Lama, the Tibetan Government-in-Exile, and the ability to wield the symbols of Buddhism, give New Delhi potent leverage in Tibet. For decades, New Delhi has danced to Beijing’s tune, restraining the Dalai Lama, cracking down on Tibetan protests, and even deploying hordes of police and paramilitary forces to ensure that the Beijing Olympic torch relay through Delhi is not marred by protests.

It is hard to see how New Delhi can stop the Dalai Lama’s visit to Tawang, without apparently kowtowing to Beijing. But Beijing’s dominance is such that it views the visit as a “provocation”.

With the Beijing-New Delhi relationship changing, China is struggling to accept the new reality. Complicating Beijing’s strategic calculus further is the realisation that pushing India beyond a point could push it overtly into Washington’s orbit.

Back on the LAC, China is signalling displeasure over all these issues. But the mildness of the signals reflects the constraints in China’s options. At this point, there is little more that the Dragon can do. – Business Standard

]]> 3948 2009-09-24 03:55:18 2009-09-24 10:55:18 open open ajai-shukla-worried-dragon-outraged-elephant publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5721#comments wfw:commentRSS http://zikkir.com/business/5721/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5721 syndication_item_hash 617008c45af209580b9c071253cc0410 Every little helps http://www.ethiopianreview.com/business/3947 Thu, 24 Sep 2009 10:56:44 +0000 http://zikkir.com/business/?p=5723 When you’re trapped in a bear-hug, any extra air is welcome. The UK government’s suffocating 70 per cent stake in Royal Bank of Scotland would rise to 82 per cent if the lender signed up for state insurance on £294 billion of its riskiest assets.

Now the bank is mulling a rights issue to keep that unwelcome holding below 80 per cent. This may seem of marginal benefit. But a cash call would be about much more than fine-tuning the bank’s answerability to taxpayers.

RBS has been told by its advisors that institutions would fund a capital-raising of between £3 billion and £5 billion, according to a person familiar with the situation. That would substantially deal with the £6.5 billion fee that the bank has agreed to pay for the cover, in the form of new B-shares issued to the government.

But it would still leave RBS issuing £13 billion of these special shares to the state in a side-deal agreed in February alongside the loan-loss insurance. At £5 billion, a rights issue would leave the government at 77 per cent if the state sold all its rights. Institutional investors would hardly be punching the air.

The UK’s other state-dominated bank, Lloyds Banking Group, is seeking to go much further in shaking off the government, by reducing the £260 billion of assets earmarked for insurance by between a half and three-quarters. It has yet to fall under state control —and is keen to keep it that way.

RBS is similarly keen to renegotiate the terms of its participation in the loan-loss insurance scheme — in particular a clause requiring it to surrender up to £11 billion of deferred tax assets. But its bargaining power is more constrained given its smaller base of private shareholders. Limiting the increase in the government’s stake may be the best outcome it can hope for.

That said, a successful rights issue would have other substantial benefits. It would signal investor confidence in chief executive Stephen Hester’s strategy to de-lever the lender and refocus it on the less racy parts of the banking business. It would also be the first time in ages that RBS shareholders have stumped up something other than extinction-avoidance money.

This would be a big boost to sentiment. And that would lay a firm foundation for future sales of new shares by the company — or of existing shares by the government. – Business Standard

]]> 3947 2009-09-24 03:56:44 2009-09-24 10:56:44 open open every-little-helps publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5723#comments wfw:commentRSS http://zikkir.com/business/5723/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5723 syndication_item_hash 5ea1fdd55c178ed238b137beb1fa939c Another India: The death of a critic http://www.ethiopianreview.com/business/3946 Thu, 24 Sep 2009 10:58:30 +0000 http://zikkir.com/business/?p=5725 The Prospectus of the 19th-century Mookerjee’s Magazine declared that, “Our Magazine will be a receptacle of all descriptions of knowledge and literature, Poetry, the Drama, vers de société, Criticism, Prose Fiction, Sketches, Philosophy, Politics and Sociology…” and so forth for another two ambitiously inclusive lines.

Professor Meenakshi Mukherjee, scholar, critic and writer, who died last week at the age of 72 of a sudden heart attack at Hyderabad airport, enjoyed quoting the Prospectus; in some ways, it reflected the contents and broad scope of her own formidable mind. (She gave vers de société a wide berth, but was open to the rest.)

Criticism of Indian writing in English suffers from two major problems. Much of it is unintelligible, especially criticism as practised by followers of Gayatri Spivak and Homi Bhabha, and requires the skills of an expert in linguistic forensics to decode. Much of it is invisible, relegated to obscure academic journals or to the thriving but insular seminar circuit. Very little of it is actually influential, or lasting, but Meenakshi Mukherjee’s contributions are likely to fall into this category.

There was no sense, in her presence, of reading literature as dead texts from a distant past. Her years in research, and her long partnership with her equally distinguished husband, the late translator and academic Sujit Mukherjee, gave her a holistic view of Indian writing in English that few other practitioners possessed. Meenakshi Mukherjee could trace the lineage of IWE much further back than Bankimchandra’s Rajmohan’s Wife—considered the first true novel written by an Indian in English. Through her scholarship, she offered a much more interesting history than the accepted one of a novel, imitative of its Western counterparts, that sprang out of nowhere from Bankim’s mind.

In her excavation of history, the Indian novel had been emerging in unusual form well before the 19th century. The first two books that snagged Meenakshi Mukherjee’s attention dated back to 1835 and 1845 respectively—both were works of alternate history, imagining an uprising against the British, and a future without English rule.

Years later, when she translated Lokenath Bhattacharya’s The Virgin Fish of Babughat, she was fascinated by the question of imagination. The Indian expression of it may have been influenced by magic realism, or by the European novel, but it had a different fountainhead, in her opinion. Bhattacharya’s novel, for instance, is set in an imaginary prison where the inmates have the “freedom” to explore sexuality. But it’s the guards who decide on the pairings of prisoners, and erotic exploration soon becomes just another fatigue-inducing prison ritual. The narrator of The Virgin Fish of Babughat is bound by different rules—he must commit his thoughts to paper, by order, and he is rendered frantic by the fear of losing language, the necessity of facing blank page after blank page every day.

In one of the last conversations we had, just before Meenakshi Mukherjee was supposed to come to Delhi for the launch of her biography of R C Dutt, we discussed the Indian writer’s love for fantasy, for the picaresque and for alternate histories—all these exerted a powerful fascination for the early pioneers, before the conventions of the middle-class novel took over.

It’s sad that one set of writers will remember only the skirmish between the professor and the writer Vikram Chandra, which he documented, memorably, in an essay called “The Cult of Authenticity”. Meenakshi Mukherjee had noted the tendency of some Indian writers in English to exoticise India unnecessarily, to produce the modern equivalent of sadhus and maharajas in an attempt to establish their authenticity.

Mukherjee picked on Chandra’s collection of short stories, Love and Longing in Bombay, as an example of this trend, for his use of words like Dharma, Artha, Kama and Moksha in the titles. In retrospect, she was right about the anxiety of writing India that infected a certain group of writers—and perhaps still does. But she was dead wrong in her selection of offenders—Chandra couldn’t be accused of this particular crime. When some of us taxed her with evidence to the contrary, years ago, she was delighted. “A proper argument!” she said, and settled to it with her trademark relish and acumen. Neither side succeeded in convincing the other, but we, at least, retired with a far broader sense of our literary history once she was done with her examples.

This isn’t my favourite Meenakshi Mukherjee memory, though. That would be one shared by generations of students at JNU and the many other universities where she taught: the memory of engaging with “MM” as she opened up our forgotten literature and unexplored past to us via Raja Rao’s Kanthapura, inviting us to claim Indian English, in all its richness and complexity, for ourselves. To borrow from the title of one of the many anthologies edited by her, there was another India out there, and she wanted every reader to make their own explorations of that familiar and unknown country. – Business Standard

]]> 3946 2009-09-24 03:58:30 2009-09-24 10:58:30 open open another-india-the-death-of-a-critic publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5725#comments wfw:commentRSS http://zikkir.com/business/5725/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5725 syndication_item_hash db9394ba17ee48e5bb9f46a1c681dc62 Vanita Kohli-Khandekar: Making media child-friendly http://www.ethiopianreview.com/business/3945 Thu, 24 Sep 2009 10:59:36 +0000 http://zikkir.com/business/?p=5727 Though I have been an avid consumer of all sorts of media, I never seriously looked at them from a child’s perspective. Now, with a five- month baby who is fascinated by any screen or newspaper, I have started wondering about his media choices as he grows up. Currently all he thinks of is eating the newspaper or the screen. But eventually these will form the fodder for his mind, as all media does. So what is the appropriate age for him to watch TV? What should he watch? When can he watch films, what kind of films, what books should one allow him to read?

The dilemmas of a parent have hit me. So has the realisation that the media market for children is underserved. Take the three largest segments of the media business in India — print, television and films. Of these, print is by far the most adult- dominated category. If you look at newspapers and magazines, it is about information, entertainment or news for you and I. Most children’s magazines come and go. And the kids’ section in newspapers usually has puzzles or pieces on education. There is little on the issues that kids could face — bullying, study -related problems, or even parents themselves.

The book publishing business is the only one that takes kids seriously. There is lots of variety in games, fiction and non-fiction. What is missing? Languages. Where are the good children’s books in Marathi or Hindi (the languages I speak) or in any other Indian language? In an English-dominated global economy, my big fear as a parent is that my kid will never know an Indian language.

While there are no estimates, let us assume that book publishing brings a decent slice of revenues from books targeted at kids. But we are in 2009, so books may not have the same hold over children that they had for, say, for my generation. Television and films have a bigger hold over children now. (You could argue that much depends on the quality of parenting, but that is another debate.)

On TV, the inevitable Cartoon Network, Pogo, Disney et al comprise the lion’s share of kid’s viewership. The kids’genre, as defined by TAM, has doubled its share of TV viewership across India from 2.7 per cent in 2004 to 5.4 per cent in 2008. This refers only to channels that define themselves as those for kids, not the kids’ shows on, say, Star Plus or Zee. Nor are there any estimates on how much of adult TV kids consume. In a market dominated by single-TV homes, chances are your toddler is watching the same news or soaps that you are watching.

When it comes to films, the scene is particularly pathetic. The last full-length feature films made for kids were Makdee and The Blue Umbrella, both by Vishal ‘Kaminey’ Bhardwaj. In case you want to point to Taare Zameen Par, it was meant more for parents who keep pushing their children.

Animation flicks, such as My friend Ganesha or Hanuman come up once in a while. In a market where parents go to any lengths to indulge their child, it is odd that multiplexes aren’t full of films for children during Diwali or summer holidays.

For a country with legendary procreative abilities — we are the world’s second most populous country with a birth rate that is that is three times that of most developed countries — why aren’t the options wider or the market bigger?

One reason could be that kids by themselves may be the consumers of media but the decision very often, at least till they are 12-13 years old, rests with parents. Not only because parents pay the bills, but also because they are supposed to be the best judges of what is suitable for kids. Do parents’ tastes then restrict the choices that the market offers?

Maybe they do. If so, then we need to start looking at the world through a kid’s eyes. That is when we will demand more from the media targeted at them. – Business Standard

]]> 3945 2009-09-24 03:59:36 2009-09-24 10:59:36 open open vanita-kohli-khandekar-making-media-child-friendly publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5727#comments wfw:commentRSS http://zikkir.com/business/5727/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5727 syndication_item_hash 245bda4c0a79f3f7c6353c116de50f6e IOB to go for business process re-engineering soon http://www.ethiopianreview.com/business/3944 Thu, 24 Sep 2009 11:00:37 +0000 http://zikkir.com/business/?p=5729 The Chennai-based Indian Overseas Bank (IOB) intends to go for Business Process Re-engineering (BPR) of its operations as a performance boosting measure.

Initially, the bank would launch a pilot project in this regard before scaling it up later. This initiative of the bank comes after it became hundred percent Core Banking Solution (CBS) compliant.

“Since we have achieved 100 percent CBS, we intend to go for BPR. We are in the initial stages and working out an appropriate model. It will be launched on a pilot basis and then will replicated after the process stabilises”, S A Bhat, chairman and managing director (CMD), IOB, told Business Standard. Bhat was here in connection with the inauguration of a food processing plant.

“We can’t replicate other banks model, so we have to work out a model suitable for our bank”, he said. However, he declined to give any time frame saying that it will take some time to start the BPR initiatives.

He said, the bank will focus on infrastructure finance, agricultural loan and loans to small and medium enterprises (SMEs). Between April 2008 and June 2009, the bank has restructured loans amounting to Rs 8200 crore availed by large, medium and small industries. IOB along with Andhra Bank and Bank of Boroda (BoB) is planning to set up a joint sector bank at Malaysia. The approval of the Reserve Bank of India (RBI) has been obtained and the formal approval of Malaysian authorities is awaited. The joint sector bank is expected to be commissioned before the end of the current fiscal. Similarly, the bank has obtained permission to open a representative office at Dubai and the land is being identified for setting up of this office.

As part of its plan to be a core investor venture capital fund (VCF), similar to private equity (PE) fund, the bank has finalised a joint venture partner to foray into venture capital business. However, Bhat declined to name the partner.

The bank had a capital adequacy ratio (CAR) of 13.24 percent by June 2009 and expects it to be about 14 percent after raising about Rs 1000 crore by way of upper Tier-II and Tier-II bonds couple of weeks ago.

On recruitment, Bhat said, to bridge the gap in manpower, 1250 probationary officers and 1000 clerks were appointed by the bank recently. While there is no plan to add more people this fiscal, the bank will have a relook at recruitment only after March 2010.

IOB targeted to open 78 branches across the country during 2009-10 and has so far opened 18 branches. It also plans to add 50,000 additional micro-finance institutions (MFIs) accounts during the current fiscal taking the total to 3 lakh by the end of the current fiscal. – Business Standard

]]> 3944 2009-09-24 04:00:37 2009-09-24 11:00:37 open open iob-to-go-for-business-process-re-engineering-soon publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5729#comments wfw:commentRSS http://zikkir.com/business/5729/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5729 syndication_item_hash 7e1f1a2919eeb816270347b534b1c47f SBI plans ‘Business Correspondent’ model for all GPs http://www.ethiopianreview.com/business/3943 Thu, 24 Sep 2009 11:01:32 +0000 http://zikkir.com/business/?p=5731 To reach out to the people in the unbanked rural areas, the State Bank of India (SBI), the largest public sector bank, plans to cover all the Gram Panchayats (Gps) of Orissa under ‘Business Correspondence Model’. This is being done in line with the Reserve Bank of India (RBI) guidelines on financial inclusion.

Under the plan, open ‘Banking Outposts’ will be opened in 6234 Gram Panchayats (GPs) of the state in joint initiative of SBI and the Orissa government. SBI has roped in the Mumbai based Zero Mass Foundation (ZMF) as Business Correspondent for the scheme.

The Zero Mass Foundation (ZMF) will work as a BC to deliver financial services, including National Rural Employment Guarantee Scheme (NREGS) wage payments, in the rural areas. ZMF will recruit and train people at the customer service points to enrol customers and provide banking services in the villages. Orissa will be the first state in the country where all the GPs will be connected by one bank through Business Correspondent model.

The financial inclusion dream of providing all households with bank accounts is expected to be realised by this initiative.

“Orissa will be the first state in the country where all the Gram Panchayats will be connected by the State Bank of India through banking outposts”, Shiva Kumar, chief general manager (CGM), SBI, Orissa circle, told Business Standard. The bank will enter into a memorandum of understanding (MoU) with the state Panchayatiraj department on Tuesday in this regard. SBI, which has 616 branches in Orissa, wants to reach out to the people in the rural areas. While the BC model will initially be used for making payments to the beneficiaries under NREGS, the state government will use this set up for implem\entation of other social benefit schemes like old age pension.

Since opening up of branches in all locations is not possible, the bank will vigourously peruse this model for reaching out to all villages in the state. It will expand the system even to cover the poor people who are working outside the state to make payments to their families residing in the state, Kumar added. – Business Standard

]]> 3943 2009-09-24 04:01:32 2009-09-24 11:01:32 open open sbi-plans-%e2%80%98business-correspondent%e2%80%99-model-for-all-gps publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5731#comments wfw:commentRSS http://zikkir.com/business/5731/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5731 syndication_item_hash 051bbd036950ad2ab7b3d6478f1342f1 LVB to raise Rs 265 cr via rights issue http://www.ethiopianreview.com/business/3942 Thu, 24 Sep 2009 11:02:26 +0000 http://zikkir.com/business/?p=5733 Karur-based Lakshmi Vilas Bank (LVB) is planning to raise Rs 265 crore through rights issue.

The proposed money will help the bank augment its capital base, said managing director VS Reddy.

The bank would raise the money via rights issue of 1:1 to the existing shareholders.

He said the bank’s current capital adequacy ratio was at 10.1 per cent, which was expected to go up to 12.5-13 per cent by March 2010. There will be no further equity issuance in this year.

LVB was also looking to meet its business target of Rs 17,000 crore for the current fiscal.

“We are also looking at raising another Rs 100 crore through tier II bonds, during the current fiscal,” said Reddy.

The bank currently has 253 branches, which will be increased to 276, he added. – Business Standard

]]> 3942 2009-09-24 04:02:26 2009-09-24 11:02:26 open open lvb-to-raise-rs-265-cr-via-rights-issue publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5733#comments wfw:commentRSS http://zikkir.com/business/5733/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5733 syndication_item_hash 9fd0b2420a5c128f4086420f8f6df45a Pvt placement debuts in public sector banks http://www.ethiopianreview.com/business/3970 Thu, 24 Sep 2009 11:52:44 +0000 http://zikkir.com/business/?p=5735 Punjab & Sind Bank plans to offer 5% each to top institutions

Public sector player Punjab & Sind Bank (PSB) is drawing up plans to privately place equity shares with institutional investors ahead of an initial public offer next year.

The Delhi-headquartered bank intends to offer around 5 per cent each to institutional players such as the Life Insurance Corporation of India, General Insurance Corporation, Small Industries Development Bank of India (Sidbi) and UTI Asset Management Company, a bank executive familiar with the plans told Business Standard.

This follows the Reserve Bank of India’s rejection of the bank’s proposal to sell a 30 per cent stake to Sidbi. Sources close to the development said RBI was not comfortable with the idea of an entity other than the government holding more than 10 per cent in a commercial bank.

(Rs crore) Financial performance
2007-08 2008-09 % chg
Deposits 24,831 34,676 39.64
Advances 18,343 24,615 34.19
Interest income 2,219 3,247 46.32
Total income 2,537 3,655 44.07
Net profit 382 437 14.34
Net NPA to net advances (%) 0.37 0.32 -
Capital Adequacy Ratio (%) 11.57 11.88 -
Source: Balance sheet

PSB, which has turned around over recent years by restructuring and recovering bad debt, was aiming to raise Rs 600 crore to Rs 700 crore by selling the stake to Sidbi.

This is a first private placement of its kind in the public sector banking space. At the start of the decade, LIC had acquired a 26 per cent stake in Corporation Bank. But by then the bank was already listed.

The executive said the bank’s IPO, planned for 2010-11, could provide an exit route for investors who will participate in the private placement. As a move towards an IPO, the government had also restructured the bank’s capital by converting Rs 560 crore of equity capital into perpetual debt instrument and preference shares.

Asked about the development, PSB Chairman and Managing Director G S Vedi told Business Standard: “We can place the equity with a number of players who can see value in the bank. The IPO will also provide an exit route for that. In that process, I will be able to divest 20 to 25 per cent.”

Vedi also said the price at which institutional investors acquire stake could serve as the benchmark for the IPO.

PSB is one of the two unlisted banks of the country. The other player – Kolkata-based United Bank of India – is planning an initial public offer in the fourth quarter of the next financial year.

At the end of March 2009, Punjab & Sind Bank’s capital adequacy ratio was estimated at 11.88 per cent, much above the regulatory requirement of 9 per cent. It intends to raise resources to fund its growth plans.

The bank sees 30 per cent year-on-year growth for at least two years and aims to reach a business figure (advances plus deposits) of Rs 100,000 crore by the end of 2010-11 against Rs 65,000 crore at present. – Business Standard

]]> 3970 2009-09-24 04:52:44 2009-09-24 11:52:44 open open pvt-placement-debuts-in-public-sector-banks publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5735#comments wfw:commentRSS http://zikkir.com/business/5735/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5735 syndication_item_hash f82859ff44e34a040c949820db4eb4e1 Rally eases redemption pressure on FCCB issuers http://www.ethiopianreview.com/business/3969 Thu, 24 Sep 2009 11:57:19 +0000 http://zikkir.com/business/?p=5739 Convertible bonds from large-cap companies being sought by foreign investors.

Considering the flop show in premature buyback of foreign currency convertible bonds (FCCBs), the V-shape recovery in equity markets since the March 9 low is being seen as a blessing for FCCB issuers. The current surge would see bonds worth $7.57 billion converted at pre-determined prices. Of this, FCCBs worth $2.32 billion (Rs 11,305 crore at the current conversion rate) are fully ripe for conversion as share prices of the issuer companies are above or marginally lower than the conversion prices.

Moreover, continuation of the V-shape recovery from the current levels till markets get back to all-time highs will see FCCBs worth $5.25 billion receive conversion advice from bond-holders. (Click here for FCCB data table)

Though shares of these companies are trading 30-50 per cent below the proposed conversion prices, considering the 25-30 per cent premium taken over the market prices prevailing on issue dates, the current prices are near or 25 per cent below the issue prices. It is anticipated that these bonds could start trading at a premium if the Sensex hits the 21,200 level again.

FCCBs worth $3.59 billion could be converted before the yield-to-maturity period as most of these bonds will get redeemed only in 2012 and 2013. The current market prices of companies which issued these bonds are at a 50-65 per cent discount over the conversion prices.

If the market value of the issuer companies moves with the benchmark indices, the share prices of these companies could go up by 30-35 per cent. Also, if these companies reset prices before the redemption dates, we may see $3.59 billion of FCCBs converted into equity shares.

However, FCCBs worth $1.44 billion may face redemption blues and issuers will have no option but to redeem these at the yield-to-maturity premium. On an aggregate basis, FCCBs worth $12.59 billion were outstanding on September 18.

If these bonds are not converted into equity, they will be redeemed on maturity for $16.37 billion, considering an average yield-to-maturity premium of around 30 per cent. FCCBs worth $83 million are lined up for redemption in 2009-10, $2.93 billion in 2010-11, $4.40 billion in 2011-12 and $5.18 billion in 2012-13.

The buyback scheme of the Reserve Bank of India (RBI) was a flop, with 17 companies buying back $472 million FCCBs at an average discount of 39 per cent. Though the buyback scheme was

intended to provide a lucrative exit opportunity for companies stuck with FCCBs, very few could exercise it.

Under RBI guidelines, the issuers are required to buy back FCCB-utilising foreign currency funds held in India or abroad, fresh external commercial borrowing (ECB) and internal accruals at stipulated minimum discounts to book value ranging from 15 per cent to 50 per cent.

Nevertheless, 17 companies made a profit of $182 million in the buyback scheme. Tata Motors repurchased ¥300 million at an average discount of 54.27 per cent and made a profit of ¥137 million.

First Source Solutions and JSW Steel repurchased FCCBs worth $50 million each at a discount of around 50 per cent. Jubilant Organosys repurchased FCCBs worth $59.7 million at an average discount of 17.8 per cent on the face value and around 42 per cent on the yield-to-maturity value. In other words, Jubilant gained $19.2 million on this cancellation.

The other companies that have repurchased FCCBs at a discount are 3i Infotech, Jaiprakash Associates, Orchid Chemicals, Reliance Communication, Tulip IT Services and Era Construction.

Unavailability of surplus cash and difficulties in raising fresh ECBs kept corporates away from the buyback. However, some corporates preferred to hold cash in hand while others continued with their ongoing capex plans rather than opting for a buyback.

Suzlon Energy recently came out with an innovative non-cash buyback proposal, whereby the company swapped the earlier issued bonds with new FCCBs at a discount. In this, the conversion price has been close to the current market price, thereby replacing the cash outflow with chances of future equity dilution.

Wockhardt came out with two options for its FCCBs worth $110 million to be redeemed in October.

The bond-holders have been offered a cash buyback option or exchange of existing bonds for preference shares of the company equivalent to the redemption value. In the first option, Wockhardt would buy back the bonds only if the bond-holders offer average discounts in excess of 65 per cent of the redemption value.

In the second option, half the preference shares will be optionally convertible to equity after October 25, 2015, at the then applicable Sebi formula. The balance half will get a cumulative dividend and be redeemed at a premium of 38 per cent on December 31, 2018.

The current rally has had a positive impact on FCCB investors as they have started converting bonds into equity shares.

In the past three months. as many as 12 companies have converted FCCBs valued at Rs 455 crore. An even more encouraging development in the current rally has been a rise in unofficial premium for FCCBs on the over-the-counter (OTC) segment of the Singapore Stock Exchange.

Data from Bloomberg indicate that prices of 30 of the 55 listed FCCBs are at a premium to their issue prices, compared to only four on March 9. Of the remaining 25 FCCBs, eight are currently trading at a 1-20 per cent discount and another 10 are trading at a 20-50 per cent discount.

The data suggest that outstanding FCCBs worth $532 million of Lupin Pharmaceuticals, Tata Power, HDFC, Adani Enterprises, Aurobindo Pharma and Educomp Solutions will be converted into equity shares as these bonds are trading at a premium on OTC exchanges and the current market value of local shares are above the conversion prices.

The FCCBs of companies such as Jaiprakash Associates, Uttam Galva, Nava Bharat Venture, Jain Irrigation, Reliance Natural, Core Projects, Welspun Gujarat, Bartronics India, IVRCL, Dishman Pharma, Dolphin Offshore, Tata Chemicals, Monnet Ispat and Deccan Chronicle will also be converted into equity as their shares are trading at a premium.

REPURCHASE DEALS
Name Maturity
period Issuing
currency Issue
size FCCB
repurchased Estimated
profit
3i Infotech Jul-12 USD 100 27.1 13.4
3i Infotech Apr-12 EUR 30 4.0 2.0
Financial Techno Dec-11 USD 100 9.5 3.6
First Source Dec-12 USD 275 49.7 25.7
Geodesic Info Jan-13 USD 125 11.5 4.6
Hotel Leela Apr-12 USD 100 33.4 0.1
Hotel Leela Sep-10 EUR 60 12.2 NA
JP Assoc Sep-12 USD 400 50.0 18.8
JSW Steel Jun-12 USD 325 49.8 24.1
Jubilant Organ May-10 USD 75 3.0 0.5
Jubilant Organ May-11 USD 200 57.9 11.8
M&M Apr-11 USD 200 10.5 0.6
Orchid Chem Feb-12 USD 175 37.8 21.4
Orchid Chem Nov-10 USD 42.5 2.3 0.4
Pidilite Ind Dec-12 USD 40 2.8 NA
Reliance Comm Feb-12 USD 1000 40.0 17.8
Tata Motors Mar-11 JPY 11760 300.0 137.2
Tata Motors Jun-12 USD 490 17.0 8.4
Tulip IT Services Aug-12 USD 150 30.5 14.5
Era Const Jan-12 USD 75 20.1 7.3
HCC Apr-11 USD 100 3.4 0.5
Radico Khaitan Jul-11 USD 50 14.0 4.8
Source:- Companies’ annual reports, BSE, Bloomberg, Edelweiss Research (in million)

According to Prashant Sawant, an analyst at KNG Securities LLP, the sentiment towards India is improving and investors are looking for quality FCCB issues from large-cap companies.

Foreign investors are sitting on cash but are cautious over mid-cap and small-cap companies and are willing to buy FCCBs of companies that are fundamentally strong.

The investors are willing to buy quality FCCBs that are trading at a discount, but holders are not selling, says Sawant.

According to a report, financial advisors in London are getting a flood of requests from investors to buy FCCBs from existing investors, but there are no sellers.

INTERPRETING FCCBS
Yield to Maturity: This indicates the annualised return possible on FCCBs if these bonds are held till maturity and redeemed by the issuer.
Conversion price: The holders have a right to convert their FCCBs into equity shares at this defined price.
Redemption premiums: Most FCCBs are either zero coupon bonds or carry very nominal interest. A typical duration is five years.
Maturity date: The date of expiry of bonds. The unconverted portion of bonds has to be redeemed on the date of expiry. – Business Standard

]]> 3969 2009-09-24 04:57:19 2009-09-24 11:57:19 open open rally-eases-redemption-pressure-on-fccb-issuers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5739#comments wfw:commentRSS http://zikkir.com/business/5739/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5739 syndication_item_hash 590c5a8c8c008e64441d9a2017d70777 Need to build up forex reserves as buffer against crises: Thorat http://www.ethiopianreview.com/business/3968 Thu, 24 Sep 2009 11:58:10 +0000 http://zikkir.com/business/?p=5741 RBI deputy governor expects the economy to grow around 6% in 2009-10.

Reserve Bank of India (RBI) Deputy Governor Usha Thorat on Monday said India needed to build foreign exchange reserves when the going was good, so that it could use them as a buffer during crises.

“We have all learnt to build reserves when the going is good. The cost of sterilisation, indirect or direct, does not matter. But it will come in handy when really needed,” Thorat said addressing the 20th Annual Forex Assembly here.

India’s foreign exchange reserves, which had topped $316 billion in May 2008, have come down to about $281 billion.

Thorat said countries such as India would have to manage and deal with volatile forex flows.

RBI’s policy is to encourage genuine inflows and discourage flows aimed at reaping arbitrage opportunities.

She said foreign flows supplemented domestic savings and helped boost growth.

Thorat also said the Indian economy was likely to grow around 6 per cent in 2009-10 (April-March).

In 2008-09, India had grown 6.7 per cent, lower than around 9 per cent in the three previous years.

Thorat said portfolio inflows and short-term trade credit shot up in April-June.

However, she said, according to international credit agencies, trade flows and remittances, which had declined sharply following the global financial crisis, would take time to get back to normal.

She said reversal of capital flows could be destabilising for economies.

She declined to comment on increasing banks’ held-to-maturity cap for government securities.

At present, banks can keep a maximum of 25 per cent of their net demand and time liabilities in the segment. They have requested the central bank to increase this limit by 2-3 per cent. – Business Standard

]]> 3968 2009-09-24 04:58:10 2009-09-24 11:58:10 open open need-to-build-up-forex-reserves-as-buffer-against-crises-thorat publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5741#comments wfw:commentRSS http://zikkir.com/business/5741/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5741 syndication_item_hash 6f7cec74b19f49d495b712b884e5fe74 2365 124.120.190.171 2009-11-01 23:50:10 2009-11-02 06:50:10 0 0 0 ‘The commission-free structure will kill the insurance industry’ http://www.ethiopianreview.com/business/3967 Thu, 24 Sep 2009 12:00:29 +0000 http://zikkir.com/business/?p=5743 Q&A: J Hari Narayan, Irda Chairman

The insurance industry is undergoing a makeover. While the commission structure for unit-linked insurance plans (Ulips) has been revamped, an expert committee has suggested that agency commission be done away with in three years. Similarly, the general insurance industry is coming to terms with the post-tariff era. Insurance Regulatory and Development Authority (Irda) Chairman J Hari Narayan, who is overseeing the new architecture, talks to Shilpy Sinha about the issues that the insurers are facing. Excerpts:

What are your views on the consultation paper floated by the Swarup Committee?
It is just a consultation paper. The committee’s concern is mis-selling which takes place because agents recommend products that offer more commission, though they may not be the best for customers. The logic is derived mainly from the experience with mutual fund companies. In case of mutual funds, the churn is very high as an agent will suggest one product now and another after two months as he earns a commission each time (there is a switchover). But Ulips that insurance companies sell have a lock-in period and so there is not much churn. Also, in mutual funds, 80 per cent of the investment comes from institutions whereas Ulips are bought by retail customers.

This particular model (suggested by the committee headed by pension regulator D Swarup) is largely influenced by the experience in England. But you cannot compare the two societies. There is no reason to believe that it might work here. I don’t think the consultation paper makes much practical sense.

Should commission be embedded in the product?
Fundamentally, the idea that the commission cannot be embedded in the premium is not a very well considered one and it will kill this (insurance) industry.

Non-life insurance companies are reporting underwriting losses. Is it only because of detariffication or is it also due to improper pricing?
In a competitive environment, companies have sold policies at lower prices. They may have done it deliberately or their initial assumption in terms of the number of claims must have gone wrong. Or, it may be a mix of both. We have not got enough depth and width in our statistical base to make more predictable assumptions.

By when should we expect a shift to a risk-based capital approach?
In principal, the risk-based method of calculating the capital requirement and solvency of any company is a more accurate and scientific way of doing things. It will lead to better management and better appreciation of risk. But it is important to see whether we have the necessary back-up for a risk-based approach. There are various types of risks. In India, those databases are not profound and so the ability to assess risks of various kinds is limited. Before we move to a risk-based capital approach, the regulator will have to be equipped, the insurance companies have to prepare themselves and we have to do this in stages.

Are you seeking more disclosures from insurance companies?
At present, insurers only disclose new business premium. We would like them to also disclose the renewal premium, the persistence ratio, the number of policies dying out, claims, the claims ratio, the percentage of claims rejected, the management expense ratio and the solvency margin. Some of these disclosures would be half-yearly, some quarterly, some annual and some monthly. Unless all these are available on a regular basis, it will be difficult to figure out how a company is doing. Companies will have to put internal audits in place to be sure that the figures are correct.

It has been nine months since you allowed companies to decide on policy wording but you have not approved any add-on. Why is that so?
Over the past years, we have been approving 160-220 products a year. But now, with de-tariffing coming into effect, 300-320 products are coming up for approval. So, there is a mismatch between internal capacity and new proposals. We have less than 100 people at the moment. We are looking to increase it to 200 over the next two-three years.

There is a cap on management expenses. How many companies have violated the norms?
We implement it only when a company completes five years of operation. Out of the 20 companies that have completed five years, six are not compliant with this norm. We have asked them to explain the steps they are taking to bring down such expenses.

Global reinsurance companies are allowed to set up a company in India but none has shown interest so far. The insurance Bill talks of allowing reinsurance companies to set up branches here. Will the reforms result in reinsurers opening branches in India?
Reinsurers are allowed to set up a company but the business requires huge capital as they underwrite mega risks. No one is willing to put in so much capital. At present, reinsurance companies are not allowed to operate through branches. The difference between a branch and a company is that the former can operate using the strength of its parent’s balance sheet while the latter will have to have its own balance sheet. We will have to come up with guidelines when we allow them to open branches. These would include norms on reporting, the reinsurance premium they collect in India and the investment guidelines. We will be concerned whether this money is going to the parent and whether the company is adequately capitalised. We are going to set up a committee to look at the norms.

Life insurance companies are not profitable even after eight-nine years of operation. Is that a concern?
No, the losses are not a concern. Life insurance companies make losses for the first eight-nine years. The break-even has been pushed back by two-three years, may be because the companies sold more than they planned in order to record a higher rate of growth.

Will you allow insurance companies to invest in derivatives?
We have not allowed insurance companies to invest in derivatives so far. There are arguments that insurance companies should be allowed to invest in certain simple derivatives such as interest rate futures and index futures. We are still examining it but have not made up our mind.

Is there a discussion going on with the government on relaxing the listing tenure?
There is one insurance company which has had discussions with Irda on whether we will permit it to disinvest now. We had said that it was only the government that could reduce the tenure. Then, they approached the government. The government is thinking of reducing it (the lock-in) to five years. Therefore, they have sought our suggestions. We have no particular issue. We are only concerned with disclosures and the measures that will have to be in place to ensure that the initial public offering, when it comes, is fair to the investing public in terms of disclosures. – Business Standard

]]> 3967 2009-09-24 05:00:29 2009-09-24 12:00:29 open open %e2%80%98the-commission-free-structure-will-kill-the-insurance-industry%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5743#comments wfw:commentRSS http://zikkir.com/business/5743/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5743 syndication_item_hash 97ba6d0689517641a8153920972b87f5 620 123.125.156.132 2009-10-06 02:36:56 2009-10-06 09:36:56 0 0 0 Research In Motion (RIMM) shares down sharply http://www.ethiopianreview.com/business/3973 Thu, 24 Sep 2009 22:17:43 +0000 http://zikkir.com/business/?p=5745 rim-blackberryResearch In Motion Ltd. (RIM-T) reported today a weaker forecast for its current quarter, missing analyst expectations.

Shares are down sharply in late trading on investor disappointment with the company’s results for the fiscal second quarter ended August 28 – and in particular, weaker-than-anticipated guidance for the November quarter.

For Q2, RIMM posted revenue of $3.53 billion, up 3% from a year ago, but below the Street consensus at $3.62 billion. Adjusted EPS was $1.03 a share, a bit ahead of the Street at $1. The company said it shipped 8.3 million devices in the quarter, and signed 3.8 million net new subscriber accounts. Gross margin was 44.1%, up from 43.6% in the May quarter, but down from 50.7% a year ago.

For Q3, the company sees revenue of $3.6 billion to $3.85 billion, with EPS of $1 to $1.08 a share; the Street consensus has been $3.92 billion and $1.05 a share. RIMM sees net adds of 4 million to 4.3 million in the quarter. And not least, the company sees gross margin slipping back to 43%., thus reigniting a debate about what long-term margin the company can sustain in an increasingly competitive environment.

Analysts expected RIM’s revenue for the period to jump 40 per cent to $3.62-billion, and net income to come in at $1 per share, compared to 86 cents per share for the same period last year, according to Thomson Reuters.

RIMM in late trading is down $7.94, or 9.6%, to $75.12.

* Net subscriber account additions in the quarter were at the lower end of the company’s guidance range.
* The company expects to ship 9.2 million to 9.9 million BlackBerry phones in the third quarter.
* RIMM sees Q3 ASP of $320.
* The company expects to launch a new integrated marketing campaign.

GAAP (generally accepted accounting principles) profit for the quarter was $475.6-million, or 83 cents per diluted share, compared with $643-million, or $1.12, in the prior quarter, and profit of $495.5-million, or 86 cents, in the same quarter last year, RIM said. Adjusted to exclude the impact of a patent litigation settlement, RIM’s profit for the second quarter was $588.4-million, or $1.03 per diluted share.

During the quarter, RIM shipped about 8.3 million devices and added 3.8-million new BlackBerry accounts, the company said.

RIM shares dropped sharply during after-hours trading, following announcement of the results.

Despite the economic downturn, many analysts predict consumers will continue to migrate from traditional cell phones to more powerful smartphones – a trend that benefits Apple Inc. (AAPL-Q183.82-1.68-0.91%) , RIM and other major players in the sector.

According to research by Gartner Inc., worldwide mobile phone sales dropped 6.1 per cent during the second quarter of 2009, compared to the same period last year. Smartphone sales, however, jumped 27 per cent from the same period last year, representing the fastest-growing segment of the mobile device market.

In North America, RIM is still the smartphone market share leader, with Apple running second. However RIM’s customer base has traditionally leaned much more to government and corporate users, rather than consumers.

As many companies and agencies slowed down their spending during the economic downturn, RIM has fought to catch up with Apple’s iPhone, the biggest success story in the consumer space. Earlier this year, RIM launched a BlackBerry application store to compete with Apple’s own wildly popular offering. However RIM’s store, which started out with just 1000 applications, lags far behind Apple’s, which offers about 75,000 applications and has recorded almost two billion downloads.

(Sources: Barrons, Global Investor)

]]> Research In Motion Ltd. (RIM-T) reported today a weaker forecast for its current quarter, missing analyst expectations. Shares are down sharply in late trading on investor disappointment with the company’s results for the fiscal second quarter ended August 28 - and in particular, weaker-than-anticipated guidance for the November quarter. [...] ]]> 3973 2009-09-24 15:17:43 2009-09-24 22:17:43 open open research-in-motion-rimm-shares-down-sharply publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5745#comments wfw:commentRSS http://zikkir.com/business/5745/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5745 syndication_item_hash 2cd476b5175c110e3db3dc4eafe6e471 RIMM: Research In Motion Reports Second Quarter Results http://www.ethiopianreview.com/business/3972 Thu, 24 Sep 2009 22:21:37 +0000 http://zikkir.com/business/?p=5748 home_infoarea_smartphonesWaterloo, ONTARIO – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported second quarter results for the three months ended August 29, 2009 (all figures in U.S. dollars and U.S. GAAP, except where indicated).

Revenue for the second quarter of fiscal 2010 was $3.53 billion, up 3% from $3.42 billion in the previous quarter and up 37% from $2.58 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 81% for devices, 14% for service, 2% for software and 3% for other revenue.   During the quarter, RIM shipped approximately 8.3 million devices.

Approximately 3.8 million net new BlackBerry® subscriber accounts were added in the quarter.  At the end of the quarter, the total BlackBerry subscriber account base was approximately 32 million.

“We are pleased to report a strong second quarter with excellent financial performance, successful product launches and accelerating growth in international markets and new market segments,” said Jim Balsillie, Co-CEO at Research In Motion. “RIM is entering the second half of the fiscal year and approaching the holiday buying season with an impressive product portfolio, continuing business momentum and strong marketing support from our partners around the world.”

GAAP net income for the quarter was $475.6 million, or $0.83 per share diluted, compared with GAAP net income of $643.0 million, or $1.12 per share diluted, in the prior quarter and net income of $495.5 million, or $0.86 per share diluted, in the same quarter last year.  Adjusted net income for the second quarter was $588.4 million, or $1.03 per share diluted, reflecting a tax rate of 28.5%.  Adjusted net income and adjusted diluted earnings per share exclude the impact of a charge of $112.8 million for the payment of the settlement of all outstanding worldwide patent litigation with Visto Corporation, the details of which were disclosed in a press release dated July 16, 2009.  This charge and its related impacts on net income and diluted EPS are summarized in the table below.

Reconciliation of GAAP net income to adjusted net income

(United States dollars, in thousands except per share data)

For the quarter ended August 29, 2009
Net Income
Diluted EPS
As reported
$ 475,621
$ 0.83
Adjustment:
Litigation, net of income tax1
112,809
0.20
Adjusted
$ 588,430
$ 1.03

Note: Adjusted net income and adjusted diluted earnings per share do not have any standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The company believes that the presentation of adjusted net income and adjusted diluted earnings per share enables the Company and its shareholders to better assess RIM’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP financial measures in the context of RIM’s GAAP results.

1 In the second quarter of fiscal 2010, the Company settled all outstanding worldwide litigation with Visto Corporation for a total payment of $267.5 million of which $163.8 million ($112.8 million net of tax) was expensed as a litigation charge in the second quarter of fiscal 2010.  The remainder of the payment was recorded as intangible assets.  Further details of the settlement were disclosed in a press release dated July 16, 2009.

Revenue for the third quarter of fiscal 2010 ending November 28, 2009 is expected to be in the range of $3.60-$3.85 billion.  Gross margin for Q3 is expected to be approximately 43%.  Net subscriber account additions in the third quarter are expected to be in the range of 4.0-4.3 million.  Earnings per share for the third quarter are expected to be in the range of $1.00-$1.08 per share diluted.

The total of cash, cash equivalents, short-term and long-term investments was $2.50 billion as at August 29, 2009, compared to $2.42 billion at the end of the previous quarter, an increase of $78.5 million over the prior quarter. Cash flow from operations in Q2 was approximately $564 million which was offset primarily by capital expenditures of approximately $307 million and intangible asset purchases of approximately $179 million.

A conference call and live webcast will be held beginning at 5 pm ET, September 24, 2009, which can be accessed by dialing 800-733-7571 (North America), 416-915-5761 (outside North America). The replay of the company’s Q2 conference call can be accessed after 7 pm ET, September 24, 2009 until midnight ET, October 8, 2009.  It can be accessed by dialing 416-640-1917 and entering passcode 21289982#.   The conference call will also appear on the RIM website live at 5 pm ET and will be archived at http://www.rim.com/investors/events/index.shtml.

About Research In Motion (RIM)
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM’s portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld™ product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (NASDAQ: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visit www.rim.com or www.blackberry.com.

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to RIM’s revenue, gross margin, earnings, net subscriber account additions and operating expense expectations for the third quarter of fiscal 2010, customer demand, penetration of new markets, product initiatives and anticipated growth.  The terms and phrases “accelerating”, “approaching”, “continuing business momentum”, “strong marketing support”, “expected”, and similar terms and phrases are intended to identify these forward-looking statements.  Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, supply constraints and new product introductions.  Many factors could cause RIM’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: reduced spending by customers and other risks relating to the uncertainty of economic and geopolitical conditions; risks relating to RIM’s intellectual property rights; RIM’s ability to enhance current products and develop new products and services; RIM’s reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers; risks relating to the efficient and uninterrupted operation of RIM’s network operations centre; risks related to RIM’s international operations; and intense competition.  These risk factors and others relating to RIM are discussed in greater detail in the “Risk Factors” section of RIM’s Annual Information Form, which is included in its Annual Report on Form 40-F and RIM’s MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov).  These factors should be considered carefully, and readers should not place undue reliance on RIM’s forward-looking statements.  RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.  RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries.  All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands except per share data) (unaudited)

Consolidated Statements of Operations

For the three months ended For the six months ended
August 29, 2009
May 30, 2009
August 30, 2008
August 29, 2009
August 30, 2008
Revenue
$ 3,525,692
$ 3,423,510
$ 2,577,330
$ 6,949,202
$ 4,819,895
Cost of sales
1,971,296
1,931,985
1,270,473
3,903,281
2,375,681
Gross margin
1,554,396
1,491,525
1,306,857
3,045,921
2,444,214
Gross Margin %
44.1%
43.6%
50.7%
43.8%
50.7%
Expenses
Research and development
235,571
219,777
181,347
455,348
309,123
Selling, marketing and administration
429,748
514,291
379,644
944,039
706,236
Amortization
73,292
67,396
43,633
140,688
80,185
Litigation
163,800
-
-
163,800
-
902,411
801,464
604,624
1,703,875
1,095,544
Income from operations
651,985
690,061
702,233
1,342,046
1,348,670
Investment income
7,625
9,136
17,168
16,761
36,145
Income before income taxes
659,610
699,197
719,401
1,358,807
1,384,815
Provision for income taxes
183,989
56,167
223,855
240,156
406,754
Net Income
$ 475,621
$ 643,030
$ 495,546
$ 1,118,651
$ 978,061
Earnings per share
Basic
$ 0.84
$ 1.13
$ 0.88
$ 1.97
$ 1.73
Diluted
$ 0.83
$ 1.12
$ 0.86
$ 1.95
$ 1.70
Weighted average number of common shares outstanding (000’s)
Basic
567,789
566,787
564,899
567,288
564,222
Diluted
573,565
573,259
574,831
573,441
574,738
Total common shares outstanding (000’s)
568,219
567,368
565,370
568,219
565,370

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands except per share data) (unaudited)

Consolidated Balance Sheets

As at
August 29, 2009
February 28, 2009
Assets
Current
Cash and cash equivalents
$ 1,083,251
$ 835,546
Short-term investments
580,921
682,666
Trade receivables
2,365,106
2,112,117
Other receivables
248,162
157,728
Inventory
572,761
682,400
Other current assets
189,676
187,257
Deferred income tax asset
175,568
183,872
5,215,445
4,841,586
Long-term Investments
833,575
720,635
Capital assets
1,737,403
1,334,648
Intangible assets
1,291,454
1,066,527
Goodwill
146,557
137,572
Deferred income tax asset
-
404
$ 9,224,434
$ 8,101,372
Liabilities
Current
Accounts payable
$ 496,005
$ 448,339
Accrued liabilities
1,603,842
1,238,602
Income taxes payable
-
361,460
Deferred revenue
66,912
53,834
Deferred income tax liability
-
13,116
2,166,759
2,115,351
Deferred income tax liability
43,265
87,917
Income Taxes Payable
27,790
23,976
2,237,814
2,227,244
Shareholders’ Equity
Capital stock
2,236,190
2,208,235
Treasury shares
(45,081)
-
Retained earnings
4,664,361
3,545,710
Additional paid-in capital
139,113
119,726
Accumulated other comprehensive income (loss)
(7,963)
457
6,986,620
5,874,128
$ 9,224,434
$ 8,101,372

Research In Motion Limited
Incorporated under the Laws of Ontario
(United States dollars, in thousands) (unaudited)

Consolidated Statements of Cash Flows

For the three
months ended
August 29, 2009
For the six
months ended
August 30, 2008
Cash flows from operating activities
Net income
$ 1,118,651
$ 978,061
Items not requiring an outlay of cash:
Amortization
269,164
125,995
Deferred income taxes
(19,621)
(18,678)
Income taxes payable
3,814
(2,204)
Share-based compensation
25,747
19,600
Other
(7,915)
12,080
Net changes in working capital items
(194,001)
(515,775)
Net cash provided by operating activities
1,195,839
599,079
Cash flows from investing activities
Acquisition of long-term investments
(369,111)
(173,642)
Proceeds on sale or maturity of long-term investments
183,847
143,674
Acquisition of capital assets
(554,558)
(386,039)
Acquisition of intangible assets
(242,379)
(331,027)
Business Acquisitions
(131,541)
-
Acquisition of short-term investments
(279,226)
(335,768)
Proceeds on sale or maturity of short-term investments
473,655
408,171
Net cash used in investing activities
(919,313)
(674,631)
Cash flows from financing activities
Issuance of common shares
18,890
21,927
Excess tax benefits from stock-based compensation
2,705
12,146
Purchase of treasury shares
(45,081)
-
Repayment of long-term debt
(6,099)
(166)
Net cash (used in) provided by financing activities
(29,585)
33,907
Effect of foreign exchange gain on cash and cash equivalents
764
(11,679)
Net increase (decrease) in cash and cash equivalents for the period
247,705
(53,324)
Cash and cash equivalents, beginning of period
835,546
1,184,398
Cash and cash equivalents, end of period
$ 1,083,251
$ 1,131,074
As at
August 29, 2009
May 30, 2009
Cash and cash equivalents
$ 1,083,251
$ 1,135,325
Short-term investments
580,921
619,914
Long-term investments
833,575
663,990
$ 2,497,747
$ 2,419,229
]]> home_infoarea_smartphonesWaterloo, ONTARIO - Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the mobile communications market, today reported second quarter results for the three months ended August 29, 2009 (all figures in U.S. dollars and U.S. GAAP, except where indicated). Revenue for the second quarter of fiscal 2010 was $3.53 billion, up 3% from $3.42 billion in the previous quarter and up 37% from $2.58 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 81% for devices, 14% for service, 2% for software and 3% for other revenue. During the quarter, RIM shipped approximately 8.3 million devices. Approximately 3.8 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 32 million. [...] ]]> 3972 2009-09-24 15:21:37 2009-09-24 22:21:37 open open rimm-research-in-motion-reports-second-quarter-results publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5748#comments wfw:commentRSS http://zikkir.com/business/5748/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5748 syndication_item_hash d752ee907417d9f9ad8d503b651aa711 Giants awarded Aaron Rouse off waivers from Green Bay http://www.ethiopianreview.com/business/3971 Thu, 24 Sep 2009 22:40:47 +0000 http://zikkir.com/business/?p=5754 Aaron-Rouse-0236549New York Giants announced they are awarded safety Aaron Rouse off waivers from Green Bay. Meanwhile, knee injury ends season for Giants safety Kenny Phillips.

Phillips season ended just days after the best game of his career. Phillips, who had two interceptions in Sunday night’s win over Dallas, was placed on injured reserve by the Giants (2-0) on Thursday because of an unhealthy left knee. The team also announced it was awarded safety Aaron Rouse off waivers from Green Bay. “I really feel for Kenny because he had worked so hard during the offseason to prepare himself for the ‘09 season,” general manager Jerry Reese said.

The Giants acted quickly in replacing the injured Kenny Phillips on the roster by signing former Packers S Aaron Rouse, who was waived by Green Bay only yesterday.

Rouse is a 6″4″, 227 lb third-year man out of Virginia Tech who played the first two games for Green Bay this season. Rouse had nine tackles in the Packers’ loss to the Bengals last week.

Rouse entered the 2007 NFL Draft as one of the top prospects at safety due to his unmatched combination of size, strength and speed. At 6′4, 223 pounds, he ran 4.59 40-yard dash at the NFL Combine. While his physical attributes impressed scouts, his lack-luster senior season drastically reduced his draft stock; Rouse was projected by many as a late first-round to second-round draft pick.

Rouse was drafted in the third round (89th overall) of the 2007 NFL Draft by the Green Bay Packers. On June 8, he signed a 4-year, $2.3 million contract with the Packers. Rouse was cut by the Green Bay Packers on September 23, 2009.

]]> New York Giants announced they are awarded safety Aaron Rouse off waivers from Green Bay. Meanwhile, knee injury ends season for Giants safety Kenny Phillips. Phillips season ended just days after the best game of his career. Phillips, who had two interceptions in Sunday night’s win over Dallas, was placed on injured reserve by the Giants (2-0) on Thursday because of an unhealthy left knee. The team also announced it was awarded safety Aaron Rouse off waivers from Green Bay. “I really feel for Kenny because he had worked so hard during the offseason to prepare himself for the ‘09 season,” general manager Jerry Reese said. [...] ]]> 3971 2009-09-24 15:40:47 2009-09-24 22:40:47 open open giants-awarded-aaron-rouse-off-waivers-from-green-bay publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5754#comments wfw:commentRSS http://zikkir.com/business/5754/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5754 syndication_item_hash 3b8b33a6f04b0912731f134ccdb728ac RBS may raise $8.1 bn in share sale http://www.ethiopianreview.com/business/3979 Fri, 25 Sep 2009 10:33:47 +0000 http://zikkir.com/business/5760 Royal Bank of Scotland Group Plc, Britain’s biggest government-controlled bank, is in talks with shareholders to gauge the appetite for a potential rights offering, two people familiar with the talks said.

The bank held the discussions last week, said the people, who declined to be identified because the negotiations are still at an early stage. RBS may raise between £3 billion and £5 billion ($8.1 billion), one of the people said.

“I’d be surprised if they can achieve it. It’s ambitious,” said Julian Chillingworth, chief investment officer at London-based Rathbone Brothers Plc which manages $21 billion, including RBS stock. “There is concern that investors may be faced with quite a lot of cash calls in the sector. I’m not sure RBS shareholders will be that keen to subscribe.”

The government’s stake in the Edinburgh-based lender is set to increase to more than 80 per cent under the terms of the Asset Protection Scheme, the UK’s toxic asset insurance programme. RBS Chief Executive Officer Stephen Hester is seeking to limit that increase by raising cash from investors, one of the people said.

RBS raised £12.3 billion in a rights offer in June 2008 following its purchase of ABN Amro Holding NV by former CEO Fred Goodwin. That acquisition led the bank to report a £24.1 billion loss for 2008, the biggest by a UK company, after writedowns surged. Goodwin was ousted last year as the government provided a £20 billion bailout for RBS.

A spokeswoman for the bank declined to comment on the discussions. RBS has climbed 9.9 per cent in London trading over the past month, valuing the lender at about £30 billion. The stock fell 5.4 per cent to 53.25 pence at 11:30 a.m. today. The government paid an average of 50.5 pence a share for its stake.

RBS said in February it would sell as much as £19 billion of non-voting B shares to the government for placing £316 billion of toxic assets into the UK insurance plan. That sale would boost the government’s stake from its current 70 per cent.

Lloyds Banking Group Plc, 43 per cent owned by the taxpayer, is also considering a share sale to reduce its reliance on the government.

The bank agreed to insure £260 billion of risky assets with the government six months ago in return for a £15.6 billion fee.

RBS and Lloyds may both be forced by the European Union to sell assets and branches as a consequence of gaining state aid.

‘High Risk’
U.K. banks have raised £120 billion of capital to plug losses on loans and securities since the beginning of the credit crisis, Moody’s Investors Service Ltd said last week. British lenders are likely to record further losses of at least £130 billion, it said.

“It’s not surprising that RBS want to raise capital, as they don’t want to become more and more beholden to the government,” said Colin Morton, an asset manager at Rensburg Fund Management in Leeds, England which manages $2 billion. “RBS remains a very high-risk investment, as I’m very concerned about the economy over the next six to 18 months.” – Business Standard

]]> 3979 2009-09-25 03:33:47 2009-09-25 10:33:47 open open rbs-may-raise-8-1-bn-in-share-sale publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5760#comments wfw:commentRSS http://zikkir.com/business/5760/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5760 syndication_item_hash aa89c99cba67102d60d6e1e91fc17711 SocGen looks to India for growth http://www.ethiopianreview.com/business/3978 Fri, 25 Sep 2009 10:34:36 +0000 http://zikkir.com/business/?p=5761 After having a minor presence in India for more than three decades, French banking group Societe Generale (SocGen) is now counting on India along with China to offer major growth opportunities in the next three to five years.

SocGen’s Deputy Chief Executive Officer Severin Cabannes said that group was gradually focusing its presence in India, China and Brazil. He said though the group would not be expanding simultaneously in all three countries, it would increase its investments in these markets based on local responses over the next three to five years. “We are learning from these countries…for our expansion over the next three to five years,” he said.

The French group’s private banking arm’s senior executives said that it had secured a non-banking finance company (NBFC) licence from the Reserve Bank of India and would start lending money to local customers. The group has also applied for a licence to offer portfolio management services here.

At a media briefing in London hosted by senior management, SG Private Banking’s global CEO Daniel Truchi said the initial plans would be to expand its geographic presence in India by adding Pune to its existing locations at Mumbai, Delhi and Bangalore. Through its offices in Hong Kong, Singapore, Dubai and the United Kingdom, the private banking arm proposed to offer services to non-resident Indians who wished to invest in India, said Truchi.

SocGen also has a joint venture agreement with Indiabulls for undertaking life insurance business here. Cabannes said that it was awaiting a licence for this new business for over a year now. In 2004, Societe Generale Asset Management entered into a partnership with State Bank of India, the country’s largest bank, taking a 37 per cent stake in SBI Funds Management, its asset management subsidiary. SBI Funds Management is one of the top players in the fast growing asset management market. SocGen, is a minority shareholder (around 37 per cent) in a company that will provide custody and fund administration services from the end of 2009. – Business Standard

]]> 3978 2009-09-25 03:34:36 2009-09-25 10:34:36 open open socgen-looks-to-india-for-growth publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5761#comments wfw:commentRSS http://zikkir.com/business/5761/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5761 syndication_item_hash 5686f24532b77977e30529e4c9768972 Insurers cut rates as film makers rush for cover http://www.ethiopianreview.com/business/3977 Fri, 25 Sep 2009 10:35:31 +0000 http://zikkir.com/business/?p=5763 As producers rush to insure their films from delays in launch due to unforeseen circumstances such as a strike or a natural calamity, insurers are offering covers at lower rates.

The premium for film insurance has fallen from 0.8 per cent of the sum assured to 0.4 per cent in the last two months.

United India Insurance has been into the film insurance business for long. Of late, the other three public sector players, Oriental India, National India and New India Assurance, have jumped into the fray to have a share of this business. A few large private sector insurers such as Bajaj Allianz are also present in this segment.

“After the two-month-long strike by multiplexes and delay in releases due to swine flu, the awareness about covering losses has gone up. With more players coming into the market, the rates have fallen. We are moving away from most of the recent movies as the rates are unviable,” said a senior executive at United India Insurance.

Movies such as Life Partner and Kaminey, which had a delayed launch as multiplexes and theatres closed due to the swine flu scare, didn’t incur losses as they were insured. Though the insurer is yet to estimate the loss, the film makers will not suffer much, say industry sources.

While the policy covering production is the most popular, the cover against loss of profit in distribution is increasingly becoming popular.

The distribution loss for What’s your Rasheee?, which is releasing on October 2, has been insured by Oriental Insurance for Rs 20 crore.

The source added that there was a huge demand for annual cover by big production houses such as UTV, Sony and Yash Raj. This would insure any number of films made in a particular year.

The production policy insures lead actors, crew and film sets, while a distribution insurance covers losses suffered by the producer when the release of the film is stalled due to any reason.

The third most popular is the errors-and-omission insurance. Under this policy, legal matters are taken care of and the insurance company pays the court fee of the producer. – Business Standard

]]> 3977 2009-09-25 03:35:31 2009-09-25 10:35:31 open open insurers-cut-rates-as-film-makers-rush-for-cover publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5763#comments wfw:commentRSS http://zikkir.com/business/5763/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5763 syndication_item_hash dd4bd3788fdc821fc881ffa3c417df1c Mercedes-Benz: Merc’s trucks roll out http://www.ethiopianreview.com/business/3975 Fri, 25 Sep 2009 10:37:33 +0000 http://zikkir.com/business/?p=5767 For Mercedes-Benz, there is more to the Indian automobile market than just luxury cars. Along with Daimler India Commercial Vehicles, it is now looking to grow its share in the premium commercial vehicle market, which Volvo has ruled unchallenged for a while. Mercedes is not a newcomer to the Indian commercial vehicle market, having launched its Actros trucks and Mercedes-Benz buses in September 2008. The company has sold 580 trucks and 25 buses so far.

Analysts say Mercedes has got the timing right. The economy is emerging out of the slowdown and demand for trucks from the infrastructure sector is projected to be robust in the days to come. Sale of heavy commercial vehicles has rebounded after several months.

Mercedes-Benz’s head of sales and marketing (trucks), Dinesh Jain, plans to focus on specialised segments such as mining (the bulk of Actros trucks have been sold to operators in this sector), irrigation (where the company supplies to contractors in Andhra Pradesh) and special applications such as fire browsing. Jain also has on his target hydro-power projects and project carriers which haul heavy machinery such as nuclear reactors. These sectors require high power and torque and Mercedes claims it has the highest horsepower trucks in the industry.

PricewaterhouseCoopers Partner Abdul Majeed believes the market for heavy commercial vehicles holds great potential. “Earlier, 7- to 12-tonne trucks would do well in the market. But with increasing infrastructure needs, the demand for higher tonnage vehicles will only rise,” says he.

The Mercedes trucks are priced at around Rs 67 lakh on an average. The final price, of course, is fixed after consultations with customers. Jain says the premium helps the company get better profit margins. The commercial vehicles business of Mercedes-Benz, he adds, has been profitable from day one.

For buses, the company can take heart from the huge orders being placed by cities under the Jawaharlal Nehru National Urban Renewal Mission as well as road transport corporations of various states. Already, the company has sold buses to Maharashtra, Karnataka and Greater Mumbai.

It wants to raise the contribution of commercial vehicles to its sale revenue from the current 15 per cent. To make that happen, Mercedes-Benz will introduce a range of new vehicles such as long-haul trucks, city buses, triple-axle intercity coaches and over-dimensional-cargo vehicles. – Business Standard

]]> 3975 2009-09-25 03:37:33 2009-09-25 10:37:33 open open mercedes-benz-merc%e2%80%99s-trucks-roll-out publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5767#comments wfw:commentRSS http://zikkir.com/business/5767/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5767 syndication_item_hash e49c8e237b598e750ba272564b968f2a Mitsubishi plant to bring 500 jobs to GA http://www.ethiopianreview.com/business/3974 Fri, 25 Sep 2009 10:40:11 +0000 http://zikkir.com/business/?p=5769 Mitsubishi Power Systems (MPSA) will spend $325 million to put a new, state-of-the-art manufacturing plant near Savannah, Ga., creating 500 jobs in the process.

Atlanta Business Chronicle first broke the story in August.

Gov. Sonny Perdue and MPSA Senior Vice President Dave Walsh made the announcement at the plant’s ground-breaking today on a 119-acre site in Pooler, Ga.

Mitsubishi will produce advanced steam and gas turbines on the site, and will also service turbines and related components for power generation. The Pooler plant, which will be constructed in three phases, will serve the company’s customers in North and South America.

Construction will begin in 2009 on the first phase of the plant, which will make gas turbine combustor components to support operating units in the Western Hemisphere and new turbines worldwide. The company will begin hiring in early 2010.

In Phase Two, Mitsubishi will build service capabilities to support turbine rotor, rotor balancing, valve and other large component repairs and upgrades for gas and steam turbines.

During the third and final phase, the company will manufacture and assemble the next generation of high-efficiency, low-emission gas turbines. – Bizjournals.com

]]> 3974 2009-09-25 03:40:11 2009-09-25 10:40:11 open open mitsubishi-plant-to-bring-500-jobs-to-ga publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5769#comments wfw:commentRSS http://zikkir.com/business/5769/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5769 syndication_item_hash 9940ed080c623ea8815c535d8ce146a0 Met Council gets $1.1M in stimulus funds for Metro Mobility buses http://www.ethiopianreview.com/business/3980 Fri, 25 Sep 2009 11:19:41 +0000 http://zikkir.com/business/?p=5771 The Metropolitan Council has received $1.1 million in stimulus funds to replace diesel buses with gas-electric hybrid vehicles.

The funding will go toward small buses used by Metro Mobility, which provides transportation services to people with disabilities.

The U.S. Department of Transportation on Monday announced more than $100 million in stimulus awards.

Another grant went to Fergus Falls, which received $845,000 for hybrid vehical upgrades and other energy-reduction projects. Part of the funding will be used to buy equipment that converts cooking oil into a type of fuel. – Bizjournals.com

]]> 3980 2009-09-25 04:19:41 2009-09-25 11:19:41 open open met-council-gets-1-1m-in-stimulus-funds-for-metro-mobility-buses publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5771#comments wfw:commentRSS http://zikkir.com/business/5771/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5771 syndication_item_hash 5b77411fdfec3ebfd5480e52edfa1f00 Triveni Engg: Rural retail slowdown http://www.ethiopianreview.com/business/4005 Sun, 27 Sep 2009 03:43:20 +0000 http://zikkir.com/business/?p=5777 So far the rural markets were supposed to be safe from the economic downturn. Though urban retailers were facing inclement weather, rural retailers were safe and sound. The National Rural Employment Guarantee Scheme and high support prices for key crops had improved purchasing power. The expansion in the network of rural roads had begun to fetch better prices for farm produce. Rural income, of course, is not taxed.

Signals have come that all is not well in that market. Triveni Khushali Bazaar, the rural retail arm of Triveni Engineering and Industries, one of the country’s leading sugar producers, has hit a rough patch. A media report even suggested that the company has decided to shut the business after finding no buyers for it, and has begun to hand out pink slips to its 300-odd employees.

Triveni Engineering and Industries Executive Director Tarun Sawhney admits all is not well but says there is no plan to down shutters. But he does say that a strategic rethink is urgently called for. “Retail has seen adverse business conditions both in rural and semi-urban areas. We are looking at various ways to restructure Triveni Khushali Bazaar to make it viable in the best interests of the shareholders,” says he. A decision on the future course for the retail chain is expected soon. Rural retail, Sawhney adds, contributes an insignificant part of the company’s turnover.

Sector experts say that the rural retail business has taken a turn for the worse after the sub-optimal monsoon rains in large parts of the country. Customers had begun to down-trade almost two months ago in anticipation of less than normal rainfall. “Income in rural households comes twice a year when the crops are harvested but the expenditure is spread across the year. So, there is the tendency amongst farmers to hold back expenditure at the first sign of sub-optimal rains,” says a Delhi-based industrialist who also has interests in rural retail.

The late revival in the monsoons is expected to improve the situation to some extent as the festival season approaches. The recent spell of rains is likely to leave sufficient moisture in the soil for the next crop. Rural retailers have drawn some comfort from it. The consumer electronics industry too had seen a slowdown in the rural markets in June and July, though there are signs that buying has picked up once again now.

Triveni Engineering and Industries had ambitious growth plans in rural retail. With large sugar mills in Uttar Pradesh, it planned to leverage its presence amongst farmers to get into the sector. It had parked its retail business in a fully-owned subsidiary called Triveni Retail Ventures. Businessmen usually float subsidiaries for a new business to induct a partner or raise money in the future. It runs 42 stores in Uttar Pradesh and Uttarkhand. These sell farm consumables (seed, fertiliser and so on), fast-moving consumer goods and financial services.

The portents are ominous. Triveni Engineering and Industries is not the only one to invest in rural retail. ITC, the Goderj Group and DCM Shriram Consolidated have also put in substantial money and effort in the sector. Will they come out of the current slowdown unscathed? – Business Standard

]]> 4005 2009-09-26 20:43:20 2009-09-27 03:43:20 open open triveni-engg-rural-retail-slowdown publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5777#comments wfw:commentRSS http://zikkir.com/business/5777/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5777 syndication_item_hash 76054eb1075a35783f2297a3970f47e1 BofA to pay $425m over toxic assets http://www.ethiopianreview.com/business/4003 Sun, 27 Sep 2009 03:46:23 +0000 http://zikkir.com/business/?p=5781 Bank of America agreed late on Monday to pay $425m to federal regulators to extricate itself from an agreement struck last December to protect the bank against $118bn worth of toxic assets, most of which came from Merrill Lynch.

The decision to pay the money to the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation brings an end to one of BofA’s financial entanglements with its overseers at a time when the bank is also trying to pay back $45bn in funds to the troubled asset relief programme.

The loss-protection agreement was part of a deal struck in December after Ken Lewis, BofA chief executive, told Hank Paulson, the then Treasury secretary, that he wanted to invoke a “material adverse change” clause to abort his planned acquisition of Merrill Lynch.

Mr Paulson, along with Ben Bernanke, the Federal Reserve chairman, encouraged Mr Lewis to proceed with the deal, and provided $20bn in funds, on top of the $25bn already earmarked for BofA and Merrill, to make sure the transaction was consummated. On top of the money, the regulators gave BofA a guarantee on $118bn worth of troubled assets.

BofA did not formally sign a contract for the ringfence protection and in May decided against entering into the insurance programme. For the past three months, the bank has been in negotiations with federal officials to determine the fair value of the perceived insurance provided by the guarantee.

Meanwhile, the US Securities and Exchange Commission said it would consider adding charges to its lawsuit against BofA for allegedly failing to give investors details on executive bonuses.

The SEC’s statement that it would “vigorously” pursue the charges against BofA came after a federal judge refused to agree to a proposed settlement between the regulator and the bank.

In a scathing ruling last week, the judge said the settlement made no sense unless the SEC identified the individuals who allegedly made false or misleading statements.

Separately, BofA on Monday named Charles Holliday, the former chief executive of DuPont, as a director, furthering its effort to overhaul its board.

The arrival of Mr Holliday means that six new outside directors have joined BofA’s board since the April 29 annual meeting, when shareholders voted to strip Mr Lewis of the additional title of chairman. – The Financial Times

]]> 4003 2009-09-26 20:46:23 2009-09-27 03:46:23 open open bofa-to-pay-425m-over-toxic-assets publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5781#comments wfw:commentRSS http://zikkir.com/business/5781/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5781 syndication_item_hash 801b068f7dff19e2579ad8cf2caed74e China to further improve supervision system of capital flow http://www.ethiopianreview.com/business/4002 Sun, 27 Sep 2009 03:47:23 +0000 http://zikkir.com/business/?p=5783 China’s foreign exchange regulator said Monday at an internal meeting that it will strengthen the management of capital flows, preventing massive capital outflow and influx in a bid to safeguard the country’s financial security amid a global economic downturn.

State Administration of Foreign Exchange (SAFE) said it will place priority on facilitating a balance of international payments as there are still uncertainties in international capital flows and international payments.

The SAFE vowed to enhance the statistical and supervisory system for cross-border funds, and to continue to optimize the emergency mechanism of international payments.

It pledged to promote product innovation in the foreign exchange market, offering more risk-avoiding tools to enterprises.

It will also provide more convenience to legal foreign exchange business activities of all kinds of market players, stepping up to improve the cancel-after-verification mechanism in receiving and payments in the country’s import and export business. – China.org.cn

]]> 4002 2009-09-26 20:47:23 2009-09-27 03:47:23 open open china-to-further-improve-supervision-system-of-capital-flow publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5783#comments wfw:commentRSS http://zikkir.com/business/5783/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5783 syndication_item_hash 8fc9cd143be1764f72b0ed56b41eec21 ADB says China GDP to grow 8.2% this year http://www.ethiopianreview.com/business/4001 Sun, 27 Sep 2009 03:48:11 +0000 http://zikkir.com/business/?p=5785 The Asian Development Bank said Tuesday it had revised its forecast on China’s year-on-year economic growth to 8.2 percent for 2009.

The new projection for this year is higher than the bank’s previous forecast of 7 percent on March 31 and above the goal of 8 percent set by the central government.

The lift in the GDP growth forecast was because of “a surge in bank lending and vigorous fixed-assets investment”.

The government rolled out a 4-trillion-yuan (585 billion U.S. dollars) stimulus package in November last year, aiming to boost economic growth slowed by a slump in exports amid the global economic downturn. It also implemented a moderately relaxed, proactive policy to help revive the economy.

“The policy has softened the blow from the global slump,” the bank said.

China’s economic expansion will surge to 8.9 percent in 2010, the ADB said, contributing the lift to the maintenance of the fiscal stimulus and a likely moderate recovery in the global economy in 2010.

The bank estimated China’s consumer price index (CPI) would fall 0.5 percent from a year earlier this year and rise 3.0 percent in 2010.

“Such a scenario might trigger a round of severe monetary belt-tightening in the medium term,” the ADB warned, “if the monetary stimulus were to be withdrawn too quickly, there would be a risk of slowing down in growth”.

“Authorities face the challenge of balancing the need to maintain aggressive monetary stimulus until growth is sustainable against the risk the flood of bank lending will be diverted into speculation and excess industry capacity,” the bank said.

“The predicted 3-percent inflation rate in 2010 is mild and would not trigger big problems, which mean that China will not necessarily need to tighten its monetary and fiscal policy prematurely, gearing down economic growth, said Zhuang Jian, a senior economist with the ADB.

According to the bank, the Chinese economy is currently facing risks brought by the possible fragile overseas demand resulted from the uncertainty in the recovery of the global economy, the unsure future of the government’s expansive fiscal policy, possible asset bubbles and non-performing loans caused by the slack monetary policy.

China should work harder in economic restructuring , and in the promotion of domestic demand and employment, the bank said

The Manila-based multilateral bank updated its forecast of average growth in developing Asian economies to 3.9 percent in 2009 from a previous estimate of 3.4 percent made in March.

It also raised its 2010 forecast to 6.4 percent from 6.0 percent.

Firm actions by many governments and central banks, relatively healthy financial systems and a rapid turnaround in less export-dependent economies have pushed forward the region’s recovery from the financial crisis, according to the bank. – China.org.cn

]]> 4001 2009-09-26 20:48:11 2009-09-27 03:48:11 open open adb-says-china-gdp-to-grow-8-2-this-year publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5785#comments wfw:commentRSS http://zikkir.com/business/5785/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5785 syndication_item_hash de2b5f298ed7582ef815bddae8caf975 Geely may tap PE fund http://www.ethiopianreview.com/business/4000 Sun, 27 Sep 2009 03:48:55 +0000 http://zikkir.com/business/?p=5787 Geely Automobile Holdings Ltd, China’s biggest privately owned carmaker’s Hong Kong-listed arm, is in talks to sell $250-million worth convertible bonds and call warrants to a private equity fund of the Goldman Sachs Group Inc, according to media reports.

“The two sides have basically agreed on the investment in Geely already, but have yet to work out some technical details,” Reuters reported yesterday citing a source with direct knowledge of the deal.

According to research firm FactSet Research Systems Inc, the investment is expected to give Goldman Sachs’ PE fund 15 percent stake in Geely Auto.

Geely’s listed arm plans to boost its production capacity through the investment, including tripling the annual output at its flagship car plant in Hunan to 150,000 units, and also to buy auto-related assets from its parent company, reported Financial Times.

A spokesman for Goldman Sachs in Hong Kong refused to comment. When contacted, Wang Ziliang, Geely Holding Group Co’s vice-president, said: “If something happens, we will issue a statement.”

Last Wednesday, Geely Auto shares were suspended at the Hong Kong Stock Exchange pending an announcement regarding the investment.

Its shares closed at HK$1.79 the day before its suspension, a decline of 3.24 percent.

On Sept 6, Gui Shengyue, executive president of Geely Auto, disclosed that its parent company, which has been eyeing Ford’s Volvo, might probably acquire the Swedish luxury brand in alliance with financial institutions.

However, a Goldman Sachs insider told China Daily that even if that deal was done, the current investment would “do nothing for the Volvo bid, as the fund is little more than a drop in the acquisition ocean”.

Hangzhou-based Geely Group has been involved in possible acquisition talks for Volvo since December last year. However, most industry analysts have doubted whether Geely, a small Chinese company, would be capable of paying huge money for Volvo.

Geely’s total assets were at just over 14 billion yuan last year. It earned a profit of 1 billion yuan. Geely’s Chairman Li Shufu admitted earlier this year that the company had about 10 billion yuan in debt.

Another leading Chinese carmaker Chery Automobile Co said in June that it had raised 2.9 billion yuan from local private equity investors to boost its development and expansion plans. – China.org.cn

]]> 4000 2009-09-26 20:48:55 2009-09-27 03:48:55 open open geely-may-tap-pe-fund publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5787#comments wfw:commentRSS http://zikkir.com/business/5787/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5787 syndication_item_hash e06c3ca2e627eb663d398e3508a39f2b Huaneng Power gets local bank funding for buy http://www.ethiopianreview.com/business/3999 Sun, 27 Sep 2009 03:49:42 +0000 http://zikkir.com/business/?p=5789 Huaneng Power International Inc, China’s largest listed power producer, yesterday got a S$3.2 billion ($2.3 billion) bank loan to fund its acquisition of Tuas Power in Singapore.

Under an agreement signed yesterday, Huaneng will get S$2.8 billion ($2 billion) loan from Bank of China and S$400 million ($300 million) loan from China Construction Bank. The company will mainly use the money to pay for the loan it had borrowed from overseas banks for the deal last year.

Huaneng paid S$4.24 billion ($3 billion) to buy Singapore’s Tuas Power Ltd in March 2008. It was Huaneng’s first 100 percent stake purchase in an overseas company.

Huaneng bought the company from Singapore’s Temasek. It made the deal from its wholly owned subsidiary in Singapore.

“Acquiring Tuas is an important step in Huaneng’s overseas strategy,” said Cao Peixi, chairman of the company, adding that with the help of domestic banks the company could better achieve its overseas development targets.

Tuas Power is one of the three main power producers in Singapore. At present, the company’s operating capacity is 2,670 mW, accounting for 26 percent of Singapore’s total power capacity.

Tuas power produced 9.84 billion kWh of electricity last year, accounting for 24.27 percent of Singapore’s total power output.

The sale of Tuas Power was the first step by Singapore to privatize its utilities sector. Temasek, Singapore’s state-owned investment firm, also plans to sell the city-state’s other two major power generators – PowerSeraya Ltd and Senoko Power Ltd.

In recent years, Huaneng has been paying increasing attention on overseas development, said Cao. By the end of last year, company’s overseas business revenue accounted for over 6 percent of its total revenue.

In 2003, the company bought a 50 percent stake in OzGen Australia, which was also the company’s first overseas deal.

Huaneng last month signed a memorandum of understanding with Duke Energy Corp, the third-largest US electricity utility to explore a variety of renewable and other clean-energy technologies.

Duke Chief Executive Jim Rogers said last Friday that the company had signed agreements with several Chinese companies to develop energy technology, including solar energy. Details of at least one of the agreements will be announced at the Clinton Global Initiative annual meeting in New York, Reuters reported.

Power output of Huaneng fell 5.84 percent in the first half of 2009 from a year earlier, on the back of weakening power demand amid the global economic downturn.

Huaneng Power produced 86.107 billion kWh of electricity in the first half, it said in its interim report. – China.org.cn

]]> 3999 2009-09-26 20:49:42 2009-09-27 03:49:42 open open huaneng-power-gets-local-bank-funding-for-buy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5789#comments wfw:commentRSS http://zikkir.com/business/5789/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5789 syndication_item_hash 13f24862afa9e8dc0999db986a954c9a 2356 91.214.45.89 2009-10-23 13:05:08 2009-10-23 20:05:08 quqvptitymeq, [url=http://ouqnzewvyphq.com/]ouqnzewvyphq[/url], [link=http://dfgayidiofvx.com/]dfgayidiofvx[/link], http://krswfysywfkr.com/]]> spam 0 0 CSRC approves Hebei Steel merger plan http://www.ethiopianreview.com/business/3998 Sun, 27 Sep 2009 03:50:53 +0000 http://zikkir.com/business/?p=5791 The China Securities Regulatory Commission (CSRC) yesterday approved the merger of Tangshan Iron & Steel Co with Handan Iron & Steel and Chengde Xinxin Vanadium & Titanium Co, paving the way for Hebei Iron and Steel Group (Hebei Steel), their parent, to become the country’s second largest steelmaker.

The three arms, Handan Iron & Steel Ltd, Tangshan Iron & Steel Co, and Chengde Xinxin Vanadium & Titanium Co, all announced that their shares have been suspended from trading starting Sept 17 and that it would resume only after the regulatory review result is publicized.

As early as December 2008, Hebei Steel unveiled its overall listing scheme, under which Tangshan Iron & Steel would become its only listed arm engaged in the pillar iron and steel business, after absorbing the other two listed arms through a share swap.

After the consolidation, the crude steel production of Tangshan Iron & Steel would touch 21.2 million tons, up 86.4 percent from the current 11.4 million tons, while Hebei Steel will have a total capacity of 330 million tons annually, ranking second in China and the fourth in the world.

Hebei Steel also said it would inject the assets of Xuansteel and Wuyang Steel into the listed Tangshan Iron & Steel one year after the three arms’ consolidation.

Xuansteel and Wuyang Steel are two high-quality subsidiaries of Hebei Steel, mainly producing steel plates and long steel products.

In the share swap, each Handan Iron & Steel share, price at 4.10 yuan, can be exchanged for 0.775 Tangshan Iron & Steel share, and each Chengde Xinxin Vanadium & Titanium share, priced at 5.76 yuan, for 1.089 Tangshan Iron & Steel shares, priced at 5.29 yuan.

The new firm will have an aggregate market value of about $4 billion.

The consolidation could bulk up China’s bargaining power in negotiations with the three global mining giants, Vale, BHP Billiton and Rio Tinto.

China is the world’s largest producer and consumer of steel driven by its manufacturing sector, construction and automobile industries.

But despite the size of the industry, China’s steel firms are disadvantaged in annual international iron ore negotiations due its low industry concentration.

The central government has long wanted to consolidate the fragmented sector into a few big players, hoping the top five steel groups will likely account for 45 percent of the country’s total capacity next year from 28.6 percent at present.

It had already started the initial moves last year itself with 17 mergers and acquisitions.

“As the consolidation is oriented by provincial governments, rather than led by the market, the merger will create a big steel player but not a strong one,” said Fan Haibo, a steel analyst at Xinda Securities. “To some extent, it is hard to evaluate the future performance of Tangshan Iron & Steel.”

How the companies will be integrated and run, and whether the new group has the capacity to manage such a large company was still the key question, he said. – China.org.cn

]]> 3998 2009-09-26 20:50:53 2009-09-27 03:50:53 open open csrc-approves-hebei-steel-merger-plan publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5791#comments wfw:commentRSS http://zikkir.com/business/5791/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5791 syndication_item_hash a0e8c9ecabd9bc20719bd55e8618d7ef SPDB stock dips on fund raising moves http://www.ethiopianreview.com/business/3997 Sun, 27 Sep 2009 03:51:41 +0000 http://zikkir.com/business/?p=5793 Share prices of Shanghai Pudong Development Bank declined yesterday after concerns that the share sale plan announced by the lender could drain money from the market.

The Shanghai-based lender, which is now 3.8 percent owned by Citigroup, said it plans to augment its capital base through diversified fund raising channels, including shares and hybrid bonds sales as well as overseas listing.

The lenders’ shares fell by 4.8 percent on Friday after it announced the plan. Yesterday it said the regulator has approved its plan to sell 1.14 billion new shares through a private placement this year, sending its stocks down another 2.98 percent before closing at 19.85 yuan per share.

The bank said it plans to raise 15 billion yuan through the private placement and would price its shares at about 13.2 yuan, well below the current market price of 19.85 yuan.

“As the market is quite sensitive to liquidity, any move to divert funds may hurt investor sentiment,” said Fu Lichun, analyst, Southwest Securities.

“Though the fund-raising plan is a positive trigger for the bank in the medium term, many investors still prefer to lock in profits first when the market trend is still uncertain,” he said, noting such corrections might last for a few days.

According to the bank’s medium-term capital replenishment plan, it aims to boost its capital to at least 115 billion yuan by 2010 and to 134 billion yuan in 2011, up from the 78.8 billion yuan at the end of June this year, and raise its core capital ratio and capital adequacy ratio to above 7 percent and 10 percent respectively by 2010.

Due to the rapid credit expansion in the first half, the bank has seen its capital adequacy ratio dip to 8.11 percent as of June 30, well below the industry requirement of at least 10 percent, prompting the lender to look for more capital replenishment.

The nation’s top banking watchdog has warned some domestic mid-sized lenders whose capital adequacy level was nearing the industry bottom line earlier this month against the potential risks of galloping lending and blocked their access to certain businesses.

The bank, which currently has 518 outlets nationwide also plans to expand its presence to about 800 outlets in 2010 after the private placement. It will also get 15 billion yuan to boost capital adequacy ratio to 9.65 percent and core capital ratio to 6.22 percent.

Huang Wei, banking analyst at Zheshang Securities, said that to achieve a 10-percent capital adequacy ratio in 2010, the bank’s loan growth should not exceed 25 percent, failing which it would need to access more funds from the market. – China.org.cn

]]> 3997 2009-09-26 20:51:41 2009-09-27 03:51:41 open open spdb-stock-dips-on-fund-raising-moves publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5793#comments wfw:commentRSS http://zikkir.com/business/5793/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5793 syndication_item_hash 3502adc965012d2726b2cd19be9323fe China issues 30 bln yuan bond to finance railway expansion http://www.ethiopianreview.com/business/3996 Sun, 27 Sep 2009 03:52:25 +0000 http://zikkir.com/business/?p=5795 China’s Ministry of Railways (MOR) has begun to raise 30 billion yuan (4.41 billion U.S. dollars) to support railway construction through floating the first batch of bonds this year on the inter-bank bond market.

The bond issue comprised 20 billion yuan of 10-year bonds and 10 billion yuan of 15-year bonds, with a bidding yield rate range of 4.8 percent to 5 percent, said the MOR Tuesday.

Proceeds would be used to construct 32 new rail lines including a passenger line linking the two northeastern cities of Dalian and Harbin, which will boast a speed of 350 kilometers an hour, said the MOR.

Six securities brokerages, including Citics Securities, will underwrite the bonds sale.

Last year, state planner National Development and Reform Commission gave the green light to the MOR to issue 100 billion yuan of bonds, mainly to facilitate construction of 43 railway construction projects and locomotive purchases.

China plans to extend its rail network to 100,000 km by 2020 from 76,600 km in 2006, at an estimated 2 trillion yuan cost. – China.org.cn

]]> 3996 2009-09-26 20:52:25 2009-09-27 03:52:25 open open china-issues-30-bln-yuan-bond-to-finance-railway-expansion publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5795#comments wfw:commentRSS http://zikkir.com/business/5795/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5795 syndication_item_hash 17b2a59d940478b6c69499e95bb464c7 Rudong to set up more clean power projects http://www.ethiopianreview.com/business/3995 Sun, 27 Sep 2009 03:53:13 +0000 http://zikkir.com/business/?p=5797 Domestic and overseas investors yesterday decided to invest 60 billion yuan for over 40 projects in Rudong county, Jiangsu province.

Most of the new projects are in power, energy and for manufacture of generating units, and are part of the nation’s efforts to build clean energy bases.

“It is a key part of the province’s blueprint to generate electricity using wind power,” said Gu Shuying, deputy chief of Rudong county.

Jiangsu has got approval from the central government to build seven wind power farms with a combined capacity of 1,250-mW generating units by 2010, which may cost 10 billion yuan.

Rudong has established the largest wind power farm in Asia on an area of 200 hectares with a capacity to generate 1,000 mW of electricity, Gu said.

The county is also setting up a new 420-million-yuan wind power project as part of the new deals signed, she said.

With abundant wind resources along its 106-km coastline, Rudong plans to install 4,120-mW wind power generating units including 620 mW for land farms, 2,500 mW for sea farms and 1,000 mW for tide generation.

The county has injected 14 billion yuan into the projects to build wind power farms with a capacity of 970-mW generating units, said county chief Zhan Lifeng.

He said a 250-mW wind power farm that commenced operations recently has been able to save nearly 330,000 tons of standard coal annually used for thermal power plants.

A total of 264 generating units with a combined 420-mW generating capacity will be installed by the end of this year, said Zhou Hua, deputy director of the Rudong new energy bureau. – China.org.cn

]]> 3995 2009-09-26 20:53:13 2009-09-27 03:53:13 open open rudong-to-set-up-more-clean-power-projects publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5797#comments wfw:commentRSS http://zikkir.com/business/5797/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5797 syndication_item_hash 40005e119dfcffec38318f8b7d516f11 Expats snap up property deals http://www.ethiopianreview.com/business/3994 Sun, 27 Sep 2009 03:54:01 +0000 http://zikkir.com/business/?p=5799 Some expats are cashing in on Beijing’s property boom and believe there are bargains to be had despite price rises.

Statistics from the Beijing Real Estate Transaction website showed that sales for future delivery apartments in August stood at 12,117 units, down 5.6 percent from the previous month.

But the figure is still 204.5 percent higher than the same period last year. The average property price in Beijing stood at 14,825 yuan ($2,200) per sq m, up 42 percent from January.

Eric Leung, a Hong Kong resident working in Beijing, bought his third apartment last week, despite property sales falling in China’s major cities since August.

“Compared with Hong Kong, the property price in Beijing is still within a reasonable range,” he said. “And I will take it as a long-term investment rather than a short-term speculation.”

Leung, who is also a professional manager in the real estate sector, said property in a sought-after location in Hong Kong now stood at around 300,000 yuan per sq m, but his new purchase, a decorated apartment 3,000 m from the International Trade Center, the landmark of Beijing’s CBD, cost him just 21,000 yuan per sq m.

“Lots of my foreign friends are also seeking properties in Beijing,” he said.

“Though the transaction volumes fell a bit recently, I don’t think the price will also follow suit.

“The strong rebound in the first half of the year brought property developers ample cash, so they are not likely to cut the price even if the transactions decrease.

“Compared with Shanghai, I believe property purchase in Beijing is a safer choice now. But I do find that banks are more cautious in offering mortgages.”

According to China Index Research Institute, the largest real estate research organization, the property sales and supply ratio in Beijing dropped to 0.8 in August, the first time for the capital’s property market to see supply exceeding demand in the past few months.

Meanwhile, though the sales of apartments with floor space lower than 90 sq m still increased by 10.4 percent in August, deals of bigger apartment fell obviously.

That means quite a number of buyers for investment and improving living conditions choose to take a wait-and-see attitude, the report said.

Some industry insiders said property prices in Beijing might have peaked in August, and that the continuous rise in property prices will lead to another market adjustment soon.

“The property price might rise further in coming months, but a lower rate could occur largely due to the law of inertia,” said Huang Xiqing, general manager of Beijing Wanion Investment Co.

For David Ng, Head of Regional Property Research, Asian Equities, ABN AMRO, said investors should pay attention to the growing risks from the policy adjustment. – China.org.cn

]]> 3994 2009-09-26 20:54:01 2009-09-27 03:54:01 open open expats-snap-up-property-deals publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5799#comments wfw:commentRSS http://zikkir.com/business/5799/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5799 syndication_item_hash 511afb701262f07e34fe28e972e56f8c China OKs 4 more firms for GEM, vetoes 1 http://www.ethiopianreview.com/business/3993 Sun, 27 Sep 2009 03:54:39 +0000 http://zikkir.com/business/?p=5801 China’s securities regulator approved Monday applications by another four firms for listing on its Growth Enterprise Market (GEM) designed to fund start-ups.

Nanjing PANENG Technology Development Co., a Nanjing-based electricity firm, was vetoed, but no specific reasons were given.

The China Securities Regulatory Commission (CSRC) announced the results in three separate statements on its website.

It was the third batch of applicants obtaining rights for initial public offering (IPO) on the Nasdaq-style market.

The regulator approved 13 companies in two batches last week.

Ten companies, out of the approved 13, began IPO procedures Monday for listing on GEM at the end of October, according to the prospectus posted on the website of the Shenzhen Stock Exchange. – China.org.cn

]]> 3993 2009-09-26 20:54:39 2009-09-27 03:54:39 open open china-oks-4-more-firms-for-gem-vetoes-1 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5801#comments wfw:commentRSS http://zikkir.com/business/5801/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5801 syndication_item_hash d8f0ef9aa2e84c22dc03d8235ff9d870 HK’s GDP falls 3.8% http://www.ethiopianreview.com/business/3992 Sun, 27 Sep 2009 03:57:40 +0000 http://zikkir.com/business/?p=5803 Hong Kong’s gross domestic product (GDP) fell 3.8 percent in real terms in the second quarter this year compared to the same period last year, the Census and Statistics Department said Monday.

According to the department, the fall in GDP showed a smaller decrease after the 7.8-percent fall in the first quarter. The second quarter also saw net output in all the service activities taken together drop 3.8 percent in real terms, down on the 7.2 percent decline in the first quarter.

Net output in the wholesale, retail and import and export trade, restaurant and hotel sector decreased by 11.2 percent in real terms, moderating from the fall of 15.7 percent in the first quarter.

The department said the smaller year-on-year rate of decline was attributable to stabilization of the global environment, which has led to a smaller fall in external trade.

Net output in the transport, storage and communications sector fell 8.8 percent in real terms, same as the first quarter’s, as the sector was still under pressure from the slackened external trading environment.

Net output in the financing, insurance, real estate and business services sector decreased marginally by 0.3 percent in real terms, which is significantly smaller than the 6.7 percent decrease in the first quarter. The improvement was attributable to the rebounds in stock trading and more fund-raising activities.

As for the local manufacturing sector, net output dropped by 10. 7 percent in real terms while that for the construction sector fell by 1 percent, after the 7 percent decrease in the first quarter. – China.org.cn

]]> 3992 2009-09-26 20:57:40 2009-09-27 03:57:40 open open hk%e2%80%99s-gdp-falls-3-8 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5803#comments wfw:commentRSS http://zikkir.com/business/5803/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5803 syndication_item_hash 1a58278ee455acb1ae38c30a0915d69d National center to back up hydropower development http://www.ethiopianreview.com/business/3991 Sun, 27 Sep 2009 03:58:24 +0000 http://zikkir.com/business/?p=5805 The National Research Center for Sustainable Hydropower Development was established on September 19 in Beijing at the China institute of Water Resources and Hydropower Research (IWHR).

The Center was launched with the permission of the National Energy Administration to back up China’s research on theories, technologies, and management in the hydropower field.

The center will seek solutions to key issues and risks with the help of IWHR’s expertise, and challenge the sector’s further development and their impact on society, the economy and ecosystems.

Chen Lei, minister of water resources, said at the center’s inaugural ceremony he hopes the center can focus its research on the most controversial issues the sector has faced in environmental protection and provide the authorities with environmentally-friendly ways of promoting the sector’s further development in China.

As an important energy, hydropower accounts for about 20 percent of the world’s total power supply.

China’s total exploitable hydropower potential is estimated to be 542 million kilowatts, ranking first in the world and next only to coal.

It is the largest renewable clean energy source available for large-scale development. However, only 31 percent of the country’s total hydropower resources have been exploited, far less than in some developed countries and the world’s average level, according to Chen.

This shows that China has great potential to push forward hydropower supply in the years to come, Chen added.

By the end of 2008, the country had built 54,000 small hydropower plants with annual power generation accounting for one-third of the total hydropower. To date, more than 300 million rural residents in half of the country and one-third of its total counties have benefited from hydropower from such small stations. – China.org.cn

]]> 3991 2009-09-26 20:58:24 2009-09-27 03:58:24 open open national-center-to-back-up-hydropower-development publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5805#comments wfw:commentRSS http://zikkir.com/business/5805/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5805 syndication_item_hash dc4c083fdd8b52f37bd6201ba1f7c469 US raises two-thirds of participation cost for Shanghai Expo http://www.ethiopianreview.com/business/3990 Sun, 27 Sep 2009 03:59:31 +0000 http://zikkir.com/business/?p=5807 The United States has raised about two-thirds of its participation cost for the World Expo 2010, said Jose H. Villarreal, U.S. Commissioner General of Section of the U.S. Exhibition to World Expo Shanghai 2010 on Monday.

“The budget has not changed. It’s still about 61 million U.S dollars,” said Villarreal.

When asked the exact amount of the funds raised, Villarreal said 40 million U.S dollars is a “general number”.

“We are in various stages of negotiation with funders, so the target is actually greater than that (40 million) at the moment,” he said.

“The funding will not be an impediment to completing the pavilion and opening it on May 1 next year,” said Villarreal.

About 70 days ago, when the United States signed a contract to take part in the Expo 2010, almost half of the funds needed had been raised.

The United States wants funds through sponsorships rather than from taxpayers, according to the its laws. Against the backdrop of the financial crisis, the United States did not confirm its participation until July 1, one day later than the deadline of June 30.

“A dozen companies” including 3M, Dell, GE and Pepsi “have made firm financial commitments” and “we are negotiating with another group of companies,” said Villarreal.

Although the funds come from sponsorships, Villarreal said the United States pavilion will not be “a big corporate advertisement”.

“We want to make sure that the participation that companies are involved in is related to the theme of the pavilion and Shanghai Expo,” said Villarreal. – China.org.cn

]]> 3990 2009-09-26 20:59:31 2009-09-27 03:59:31 open open us-raises-two-thirds-of-participation-cost-for-shanghai-expo publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5807#comments wfw:commentRSS http://zikkir.com/business/5807/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5807 syndication_item_hash da389dbd8c348fb00aea1d4d2d2c28ec Households plan to increase spending http://www.ethiopianreview.com/business/3989 Sun, 27 Sep 2009 04:00:42 +0000 http://zikkir.com/business/?p=5809 China’s massive economic stimulus package has triggered higher household spending plans, led by rural areas, an industry survey found.

About 41 percent of urban households and 59 percent of rural households said they intend to increase their spending in the next 12 months, MasterCard said yesterday, detailing the findings of a survey of 6,300 respondents in China from July to August.

“China’s households, both urban and rural, are clearly responding to the government’s policy initiatives aimed at reviving growth,” said Yuwa Wong, an economic adviser with MasterCard Asia Pacific. “The massive increase in bank lending appears to have had the desired effect on employment and income creation, especially in rural areas.”

Rural households appear more bullish than their urban ones, driven by expectations of an increase in income.

About 81 percent of rural respondents said they expect household income to rise. Other drivers of spending include optimism about the rural economy, and government policies implemented to encourage spending.

China is trying to stimulate consumer consumption to counter a slump in exports, the traditional growth engine.

To revive rural demand, the central government has offered subsidies on the purchases of home appliances and autos.

For urban households, consumer spending is driven by expectations of stable employment and anticipated increases in income.

China’s economy grew 7.1 percent in the first half. Economists said they expect China to achieve its growth target of 8 percent for 2009.

MasterCard conducted the survey in the cities of Shanghai, Beijing and Guangzhou and in the provinces of Jiangsu, Shandong and Shaanxi. – China.org.cn

]]> 3989 2009-09-26 21:00:42 2009-09-27 04:00:42 open open households-plan-to-increase-spending publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5809#comments wfw:commentRSS http://zikkir.com/business/5809/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5809 syndication_item_hash acdbf9fce38971eaf1cd15412240a69f Yanlord pays US$380m for 4 adjacent city plots http://www.ethiopianreview.com/business/3988 Sun, 27 Sep 2009 04:01:25 +0000 http://zikkir.com/business/?p=5811 Singapore-based property developer Yanlord Group yesterday won a heated bid when it agreed to pay more than 2.6 billion yuan (US$380 million) for four adjacent plots in Shanghai’s Waigaoqiao area.

Yanlord, which specializes in developing high-end residential projects, beat out six rivals from both the mainland and overseas with a final bid of 16,115 yuan a square meter.

The company is paying more than double the price it paid in July 2008, when it acquired two nearby plots for 7,400 yuan a square meter.

The combined area that can be developed in the four latest plots is about 160,000 square meters, about equal to the two plots bought last year.

“The size of both seems suitable for the development of a high-end residential community,” said Yao Weishi, deputy general manager with Shanghai Yanlord.

“We plan to develop the area into another renowned community in Shanghai, similar to Lianyang and Biyun.”

The starting price for the four plots, offered in one package at the auction, was 1.22 billion yuan.

According to Yanlord, construction on plots acquired last year is scheduled to begin at the end of this year.

The city’s property market has rebounded dramatically this year, with robust sales in both the new and secondary markets helping boost sentiment.

Earlier this month, China Overseas Land & Investment Ltd, a Hong Kong-listed real estate developer, acquired a site in the city’s Changfeng area for a record price in China of 7 billion yuan. – China.org.cn

]]> 3988 2009-09-26 21:01:25 2009-09-27 04:01:25 open open yanlord-pays-us380m-for-4-adjacent-city-plots publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5811#comments wfw:commentRSS http://zikkir.com/business/5811/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5811 syndication_item_hash 249cbf35c6134c876882f9e0761ee42d Make small business work to stimulate economy http://www.ethiopianreview.com/business/3987 Sun, 27 Sep 2009 04:02:36 +0000 http://zikkir.com/business/?p=5813 In most developed economies, small businesses play an essential role in overall economic growth. In the United States, for example, small business contributes about 50 percent of the private, nonfarm gross domestic product (GDP), according to research conducted by the US Small Business Administration (SBA).

Small businesses make a huge contribution to the Chinese economy as well. My research on Small and Medium Enterprises (SME) in Shandong Province during 2001-2006, showed that SMEs play a major role in the growth of GDP, fiscal revenue, job creation and exports. But the study also shows that SMEs make only limited contributions to technical innovation, signaling what is an important gap in SME performance in developing, as compared to developed nations.

If China is to maintain its leading role as a world economic power, the government must promote vigorous entrepreneurship by making it easy for people to start businesses with maximum administrative simplicity and minimum administrative cost. Employment has become a particularly critical issue in China since the outbreak of the world recession. There has been a huge increase in the number of unemployed college graduates, as well as other workers. Small businesses can help new graduates, laid-off workers, retired employees and others start new careers. The government should design policies to help small businesses and provide timely financial and technical assistance.

For entrepreneurship to flourish, government must provide efficient public services so as to build individual confidence and boost start-ups. China has amended its company law, reducing the minimum capital requirement by 70 percent and eliminating many of the reviews and checks previously required to register a company. But it still takes 35 days to start up a business in China compared to less than 10 days in many developed countries.

Some provinces in China have abolished the registered capital requirement or cut it to RMB￥1, but this has not boosted business start-ups as much as hoped. The major bottleneck is not registration, but unpredictable operating expenses, which are the biggest concern of most small business owners. Local governments need to take into account financial and other factors to effectively assist small businesses through all stages of development rather than just cutting registration costs.

Small business is increasingly going to drive the Chinese economy. China has a huge potential market, and its highly diversified rural market, in particular, has a critical role to play in the economy. Faced with the world financial crisis, domestic demand will inevitably become the key to economic growth. But this will require a capable small business sector able to meet the demand. The lack of a supportive policy regime could stifle business incentives and hamper economic stimulus plans.

In the U.S., most college students are familiar with the process of business start-up. Some college students are already small business owners. But in China, most students are busy taking exams and chasing certificates. Business start-up procedures are a remote issue for most graduates. Even if they fail to find a job on graduation, few think about starting a business. Although it goes against the grain of traditional Chinese educational culture, the government and universities need to launch special training programs to educate students about the procedures and principles of small business operation.

Most American small business owners are familiar with SCORE (http://www.score.org/index.html ), known as “Counselors to America’s Small Business.” Founded in 1964 as the “Service Corps of Retired Executives”, SCORE has 11,200 volunteers nationwide in the U.S., and more than 8.4 million entrepreneurs have been counseled by SCORE or attended SCORE workshops. Working and retired executives and business owners donate their time and expertise as business counselors. This is a model that China could follow by promoting a volunteer culture and involving retired executives helping educate those who are willing to set up a business and start out as entrepreneurs.

Small business should be encouraged to participate in research and development (R&D) projects. The Intuit Future of Small Business Report, written by Emergent Research, concludes that innovation will be essential for small businesses over the next decade. Small business owners are natural innovators. Compared to large corporations small businesses have advantages that enable them to identify opportunities, react quickly to changing conditions and remain competitive. Chinese small-business owners, with their well-known intelligence and capability, are well positioned to innovate. Chinese government agencies should encourage small businesses to innovate.

Small businesses account for a large and growing percentage of new jobs created in China. If China’s small businesses grow at a healthy pace, unemployment will be significantly reduced, and sustainable economic growth will become more achievable. If small businesses make a greater contribution to technological innovation, then China’s competitiveness will be put on solid foundations, and if small businesses support the stability of large corporations, job creation will become less of an issue for the government. We understand that this is a tough time for small businesses, but we also believe that making small business strong is more important now than ever. If there was ever a time to develop a national strategy to help small business flourish in China, it is 2009. The time is now. – China.org.cn

]]> 3987 2009-09-26 21:02:36 2009-09-27 04:02:36 open open make-small-business-work-to-stimulate-economy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5813#comments wfw:commentRSS http://zikkir.com/business/5813/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5813 syndication_item_hash e9098af55011179cf10e44e7f37bca54 Who in the world is middle class? http://www.ethiopianreview.com/business/3986 Sun, 27 Sep 2009 04:07:36 +0000 http://zikkir.com/business/?p=5815 Almost all of us think we are, but the incomes and comforts of that lifestyle vary widely. Still, discretionary income is a middle-class hallmark, which has marketers everywhere salivating.

In India, a scooter company aims ads at a schoolteacher who earns $2,500 a year and lives in a tiny brick house with no running water. Why? Because that teacher, according to marketers, is middle class.

In the United States, meanwhile, a family that earns $200,000 a year and has a 2,000-square-foot home, two cars, three computers and an Xbox game console so the kids don’t have to play outside barely blinks before labeling itself middle class.

And yet, experts say, neither is incorrect:

* The Indian teacher, despite his relative poverty, earns an extra sliver of income that will allow him to buy something he doesn’t absolutely need. He has escaped poverty.

* The American family, although extremely wealthy by world standards, lives with some degree of financial stress. Both parents work hard but worry about retirement, education and health care costs, and are acutely aware of the fact that they share a country with some who have far more. They feel middle class.

“Everybody sort of defines themselves as middle class” in America, says Steven R. Pressman, a professor of economics and finance at Monmouth University in West Long Branch, N.J. “Self-perception is a funny thing.”

The edges of middle-class status may be hard to pin down, but the importance of those who perceive themselves to be middle class is impossible to deny. Unlike the poor, they can buy extras. Unlike the rich, they have to spend much of their income on essentials. They’re motivated to move up and to protect what they have.

“If we value democracy and we don’t value people at war in the streets, the middle class is important,” Pressman says. “Small business, general innovation . . . things that are going to improve our standard of living — those are going to come from the middle class.”

What is middle class?
The only universally accepted definition of middle class is the oldest: neither rich nor poor. And the middle class has always been considered vital to a country’s stability and growth.

As far back as 350 B.C., Aristotle said no democracy could last without middle-class rule; the rich and the poor simply distrust each other too intensely to let the other have the reins.

Americans may not know exactly where they fall on the U.S. income scale ($200,000 is actually in the top 5%) or where government statisticians have chosen to draw the line (above $100,000 is sometimes considered “upper class”), but they do understand the idea of the middle class, and that’s as accepted a definition as any other.

More than income, the middle class is an expression of where one’s occupation, education, wealth and even attitude fit in relation to those of others. Most prefer to identify as at least somewhat typical — or near the norm — in all circumstances, and “middle class” has the added benefit of suggesting both opportunity and self-reliance. It’s very American.

Yet the concept knows no borders.

Middle class, defined as “the resources to cover all of your needs and some of your wants, plus the ability to save for the future, works for every nation and culture,” MSN Money personal-finance columnist Liz Pulliam Weston says.

Indeed, the business world salivates over a rapidly expanding global middle class that is beginning to indulge its wants and wield its political power in both India and China. At the same time, economists worry about a shrinking middle class in Western nations, including the United States.

That’s because membership in the middle class isn’t solely about income and spending. Health, education, political freedom, security — the things that allow a poor college graduate in this country to continue to identify as middle class while living in his parents’ garage — are directly linked to the strength of the middle class.

The U.N. Human Development Report uses these same indicators to rank nearly 200 countries every year. In the 2008 report, the ranking was led by Iceland, Norway and Canada — countries, not coincidentally, with large middle-class populations. The U.S. ranked 15th.

An emerging global middle class: $6 to $10 a day
In 2008, the median household income in the U.S. was $50,303, an amount that might put a family of four in debt in Denver but eight times a middle-class income in China, where people are suddenly buying things.

Multinational companies are champing at the bit to reach this rush of new consumers in the developing world. That cheap labor the companies had hired is now rising out of poverty with a few dollars — or cents — that are burning holes in their pockets.

This is the emerging global middle class, expected to more than double to a billion-plus by 2020. The chief executive of Coca-Cola has said it’s like a city the size of New York City springing up every three months.

But there’s not a lot of jangling in those pockets, at least not yet. The World Bank defines the global middle class as those earning between $10 and $20 a day. Food and rent may cost little, but the cheapest new car still requires $2,500. Coca-Cola has even developed a special ultracheap version of soft drink for the rural consumer: It comes in a small glass bottle, and the bottle is returned on the spot.

“It’s a very kind of nebulous concept, at best, the idea of middle class in a developing country,” says Abhijit Banerjee, the Ford Foundation international professor of economics at the Massachusetts Institute of Technology. “Sometimes people want to think about it to a U.S. or Western scale, but by those norms very few people are middle class.”

Banerjee defines middle-class people as those living on $6 to $10 a day.

“These are people who are in the market. They’re not just buying food and the cheapest clothes they can get. They have some choice,” Banerjee says. “You could get them to buy something, a nice TV maybe . . . some cheap cosmetics.

“In India, Pakistan, Nepal, Uganda, Ghana, Vietnam . . . these are rich people; they’re like way over the 90th percentile. In Latin America, they’re not that rich. In the States, they’re (below) the poverty line.”

Rich is relative
Surveys have found that Americans will identify as middle class all the way up to the top 3% of earners. It’s all relative, and they don’t feel rich. Probably they feel a little insecure, maybe even unhappy if they can see a neighbor’s bigger mansion from their porch.

Even if their perspective is a bit skewed, their insecurity is spot on.

In fact, what researchers will tag as middle class is actually about the middle 60%, from roughly $20,000 to $100,000 a household these days. Worldwide, the U.S. median income (half earn more, half earn less) ranked fourth behind Luxembourg, the Netherlands and Switzerland, according to data from the middle of this decade. In 2008, the U.S. median household income was $50,303.

“Everybody in the U.S. is richer than . . . rich people in most of the rest of the world,” notes Banerjee, the MIT professor.

Yet, in a study by the Organisation for Economic Co-operation and Development, or OECD, the U.S. had the third-highest percentage of people living in poverty among the world’s 28 leading nations, after Mexico and Turkey.

Translation: If you’re middle class in America, you’re at greater risk of dropping out of the middle class. In no other developed country does the poverty threshold (currently $22,025 for a family of four) brush so close to the very center of the middle class, even if American poverty looks like extravagance elsewhere.

This is the “shrinking middle class” that has economists so concerned. The number of people whose income is within spitting distance of the median has dropped in most Western nations, according to the OECD.

From 1979 to 2000, Pressman found, this middle class — those making 75% to 125% of the median income — had shrunk in all but two Western countries, Canada and Norway. In the U.S., twice as many of the missing had slipped down as had climbed up.

The reasons under debate: technology, outsourcing, de-unionization and lower wages. But Pressman isolated for these and pinpointed one that could explain the changes: government. Countries with thriving middle classes helped everyone get access to health care, education and child care, he says.

They’re moves right out of America’s own stimulus playbook.

“The big benefits to the U.S. came when the government decided it was going to provide a good public education to everybody,” Pressman says. “Had we not done that, the U.S. would not have grown, and we would not have the middle class we have now.”

Middle-class life in many other Western countries looks much like that in the U.S. In the 2005 book “Hungry Planet,” which featured dozens of families around the world with their food purchases for the week, only the language on the packages seemed to change in many Western countries. The contrast with those from the developing world is stark.

We’ve selected 10 of the families featured in that book and gathered statistics to offer a picture of life in their homes. – MSN Money

]]> 3986 2009-09-26 21:07:36 2009-09-27 04:07:36 open open who-in-the-world-is-middle-class publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5815#comments wfw:commentRSS http://zikkir.com/business/5815/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5815 syndication_item_hash ef8ce1f94a546e2692ec5627723c1185 Will US repeat mistakes of 1937? http://www.ethiopianreview.com/business/3985 Sun, 27 Sep 2009 04:11:20 +0000 http://zikkir.com/business/?p=5817 Seven decades ago, efforts to balance the federal budget thrust a recovering economy into a giant tailspin. Are policymakers headed in the wrong direction again?

The specter of 1937 hangs over the economy and the stock market.

That’s the year when overconfidence that the Roosevelt administration had whipped the Great Depression and that it was time to balance the federal budget led to another deep recession that wiped out three years of growth and sent the economy reeling back to the Depression depths of 1934.

The Dow Jones Industrial Average ($INDU), which had climbed 127% from a low of 85.51 in July 1934 to a high of 194.40 in March 1937, fell 49% to 98.95 by the end of March 1938 — not far above its ‘34 low. (Remember, it takes only a 50% loss to wipe out a 100% gain.)

After that collapse and another one in 1942, stocks didn’t match that 1937 peak until 1945.

I wrote on my blog a few days ago that “most of the time,” after big rallies like the one going on now, the stock market has remained higher a year later.

Almost always. The one big exception, the one that delivered a loss big enough to wipe out portfolios, came in 1937.

A self-inflicted swoon
It’s that “almost” that gives me pause as I look not so much at the stock market but at the economy and at what passes for our national discussion of economic policy these days.

The comforting thing about looking back at that economic and investment disaster of 1937 is that we did it to ourselves. Bad policy decisions, not accident or fate, led us over the cliff. So all we have to do to avoid a repeat of the results is to avoid the policy mistakes, right?

Disturbingly, there are plenty of signs that we might well be prepared to do it to ourselves all over again. Let’s look at what happened in 1937 and why we could repeat that year’s mistakes on our way out of the Great Recession.

1937 was the year, students of the Great Depression know, that everyone from the president on down got so confident that the bad times were over that they tipped the country back from recovery to depression.

Unemployment, which had marched down from its Depression high of 25% to a low of 14.3% in 1937, climbed again, hitting 19% in 1938. Personal income dropped 15% from its 1937 peak. And manufacturing output fell 40% from its 1937 peak, all the way back to the levels of 1934.

In other words, 1937 was the year that the V-shaped recovery from the depths of the Depression turned into a W-shaped one. The economic growth of 1934 (17%), 1935 (11%), 1936 (14%) and 1937 (10%) that had succeeded the economic collapse of 1930-33 came to a grinding halt. In 1938, the U.S. economy actually returned to negative growth, shrinking 6.2%.

What happened? Buoyed by the economic numbers and a landslide in the 1936 election — Franklin D. Roosevelt had defeated Republican Alf Landon of Kansas by an Electoral College vote of 523 to 8 — the Roosevelt administration declared victory over the Great Depression.

The declaration was a bit premature. Yes, unemployment was down from the horrifying 25% levels of the worst of the Depression, but it was still horrendous at more than 14%. The economy had begun to grow again, but 1937’s gross domestic product of $88 billion was still lower than it had been in 1930 ($97 billion).

The emergency seemed to be over, however, and many in the New Deal, including Roosevelt’s Treasury secretary, Henry Morgenthau, were deeply uncomfortable with the idea of running what looked very much like a permanent budget deficit. The annual deficit had peaked at $5.9 billion (yes, I know how quaint these numbers are in the days of trillion-dollar deficits), but it was still a shockingly high $5.5 billion in 1936.

You have to do a bit of number crunching to realize exactly how high a $5.5 billion annual deficit seemed then. It represented 7.7% of GDP and a huge 110% of the federal government’s total annual revenue.

Erasing the deficit — and the recovery
In 1937, the Roosevelt administration and the Federal Reserve moved to reverse many of the extraordinary measures they’d taken to fight the Depression. In 1937, the federal deficit was cut to $2.5 billion from the previous year’s $5.5 billion as Roosevelt and Congress slashed spending by 18%. In 1938, spending dropped still further, 10% down from the level of 1937.

And the annual deficit just about vanished. The government ran an almost-balanced budget that year with a deficit of a mere $100 million.

The Federal Reserve moved in the same direction. After pursuing policies that had resulted in an average 11% annual increase in the money supply in the previous four years, the Fed reversed course at the beginning of 1937 and began to contract the money supply, raising reserve requirements twice, the second time in the spring.

he result was the disaster I’ve described above. The economy, which had been growing strongly, stalled. GDP, which was $89 billion in 1938, grew to just $89.1 billion in 1939.

And the damage wasn’t worse only because Roosevelt forced a change in course so quickly. By April 1938, he had pushed new large-scale spending programs, totaling $3.75 billion, through Congress. Legislators later added $1.5 billion to the pot. The Fed, under Chairman Marriner Eccles, reversed course again and started to expand the money supply.

The annual deficit soared to $3.2 billion in 1939. That represented 45% of the government’s revenue that year.

Couldn’t possibly happen again, though, could it? In 1936, Roosevelt and his team didn’t even have an economic theory to justify deficit spending in an economic emergency. John Maynard Keynes’ “The General Theory of Employment, Interest and Money” wasn’t published until that year. We’ve now got a Fed chairman who has written and lectured extensively on the mistakes made by his predecessors. And unemployment is still rising. We certainly wouldn’t try to cut the deficit or balance the budget while the ship is still taking on water, right? Right?

I wish I were more certain.

Not your average recession
A July CBS News/New York Times poll found that 58% of those Americans surveyed said the government should focus on reducing the budget deficit rather than on spending to stimulate the economy. Granted, that number is probably inaccurate to the high side because of the way the question was phrased (How about this instead: Do you think the government should focus on reducing the budget deficit or making sure that you have a job tomorrow?) — but it is still remarkably consistent with earlier polling. In May, the same poll found that a majority of Americans thought that the Obama administration should shift from fighting the Great Recession to reducing the government deficit.

Listen to all the voices — not just here but even more stridently in Europe — calling for a need to restore fiscal discipline. Listen to congressional speeches calling for the Federal Reserve and the Treasury to exit the “free market” before it’s too late to save even the bones of U.S.-style capitalism and before the Obama administration sells us into, gasp, socialism.

(I just wish someone, sometime making this charge would be specific about what kind of socialism he or she is talking about. Are we afraid that this administration wants this country to be Sweden or that it has a hankering for Stalin-era gulags and collective farms, where we all start the day singing to the glory of our tractors? There’s a big difference. Maybe the speakers could wear hats or talk in funny accents to make their definitions clear.)

The economists and policy wonks and wonkettes at the New America Foundation symposium I wrote about on Friday actually believe there’s a chance we could do it again. Not by Congress cutting off the funding for the first stimulus package still flowing through the pipes, but by the House and Senate refusing to even consider a second stimulus if the economy looks like it needs one in 2011.

The year of the Big Test will be 2011. By that year, the money from the first stimulus will have been spent, and the economy will either be in the midst of a sustainable recovery or not.

I think anybody who tells you they can predict now whether we’ll have a sustainable recovery under way in 2011 is either out to fool you or is fooling himself.

This isn’t your average recession. This is a great big global recession coupled with a great big global financial crisis.

This Great Recession is therefore much more subject to fits and starts and reversals than the average recession, because every time the economy starts to run smoothly, the banking system stands ready to throw another wrench into the works.

I’m not predicting the return of 1937 in 2011. I don’t think I’ve got the kind of super-X-ray economic vision to call that one right either. But I would like us not to get carried away by the 57% rally in the stock market (as of the close Sept. 18) and become convinced that everything is fixed.

I’d like to keep all the available tools on the table until, well, until we see unemployment halved to 5% or so (or whatever passes for normal these days), until we see truly functioning financial markets, until we see mortgage foreclosures going down, until we see credit card defaults back to pre-crisis levels and until we see some significant inflation in the economy.

Until then, I’m hopeful, but I’ll be damned if I’m going to get overconfident.

I’d like the 1937 recession to stay buried in the history books where it belongs. – MSN Money and MoneyShow.com

]]> 3985 2009-09-26 21:11:20 2009-09-27 04:11:20 open open will-us-repeat-mistakes-of-1937 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5817#comments wfw:commentRSS http://zikkir.com/business/5817/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5817 syndication_item_hash e020986ca045736332c5374495822756 8 top funds for dividend hunters http://www.ethiopianreview.com/business/3984 Sun, 27 Sep 2009 04:13:10 +0000 http://zikkir.com/business/?p=5819 Many dividend funds have struggled in the last year as companies have shredded their payouts. But these 8 are all up 10% or more.

In tough times, dividends have provided stock investors with a bit of a cushion against a falling market. The payments companies hand back to their shareholders each year can often mean the difference between falling into the red and hovering in the black.

But during this downturn, companies have been trimming or suspending their dividend payments at record levels, according to data compiled by Standard & Poor’s.

The cuts and suspensions were particularly evident in the ailing financial sector, known for its long history of reliable, healthy dividends. A similar situation is playing out across the investing landscape. In February, The New York Times (NYT, news, msgs) announced it would suspend its dividend. Other companies including General Electric (GE, news, msgs), Lincoln National (LNC, news, msgs), Motorola (MOT, news, msgs) and Dow Chemical (DOW, news, msgs) have resorted to similar tactics.

The dividend cuts have made stock picking difficult for one group of mutual funds in Lipper’s equity income category. These funds typically hunt for dividend-paying stocks trading on the cheap. There are 296 of them in SmartMoney’s fund screener tool. We narrowed that universe by disqualifying those that charged a sales load and focused on the ones that levied cheap annual fees and sported top-tier performance records over the trailing three- and five-year time periods. We were left with eight funds.

Why dividends are so lovable
There are a few powerful arguments for favoring dividends. Studies have shown that dividends provide the bulk of stock market returns over the long haul. Rob Arnott, the founder of Research Affiliates, a research-intensive investment company in Newport Beach, Calif., found that high dividend yields also tend to signal higher earnings. Finally, a Bush administration law gives dividends favorable tax treatment.

All of those factors play into the hands of so-called equity income funds. These offerings typically try to build portfolios that have a dividend yield — a measure that compares dividend payouts and stock price — greater than that of the Standard & Poor’s 500 Index ($INX). (The S&P 500’s current yield is around 2.5%.)

The strategy is designed to generate returns in two ways. First, a fund’s total value increases when the stocks it owns increase in value. At the same time, the dividends contribute a few additional percentage points to the total return. These funds are often favored by retirees because they can appreciate while still providing an income stream.

As always, there’s a catch
Investors should remember, though, that dividends aren’t guaranteed.

Many financial companies that took bailout money from the government were forced to cut or suspend their dividend payments. Because financial companies were a big part of the S&P 500, their demise hurt even conservative index fund investors. It is still unclear when those payments will return. That’s why Scott Schluederberg, a portfolio manager with Hardesty Capital Management in Baltimore, prefers to pick and choose his dividend-paying stocks instead of owning a static mutual fund.

“We saw something unusual with the government bailout,” Schluederberg says. However, even before Washington stepped in, the Bush-era law had given a tax advantage to dividends, and “a lot of companies hadn’t foreseen a recession and increased their dividends higher than what was sustainable through a downturn,” he says.

One equity income fund that consistently makes our table is Wasatch-1st Source Income Equity (FMIEX). This fund has strong management and low fees, and its return over the last decade is an average annual 6.9%, good enough for the top spot in Morningstar’s large value category.

For the screen below, we looked at Lipper’s equity income category for funds that were open to new money, required a minimum investment of less than $5,000 and charged an annual expense ratio below 1.5%. In addition, the funds had to have track records during the trailing three- and five-year time periods that put them in the top 40% of the category. As usual, we did not include load funds.

Dividend hunters
Fund Net assets 2009 return Annualized 3-year return Annualized 5-year return Expense ratio

Amana Trust Income (AMANX)

$808 million

14.8%

3.4%

9.2%

1.3%
Columbia Dividend Income (GSFTX)

$983 million

10.0%

-2.5%

3.4%

0.8%
Gabelli Equity Income (GABEX)

$972 million

21.7%

-2.1%

3.6%

1.4%

Nicholas Equity Income (NSEIX)

$46 million

21.7%

2.4%

5.1%

0.9%
Parnassus Equity Income (PRBLX)

$1.7 billion

15.5%

2.7%

4.7%

1.0%
Royce Dividend Income (RYDVX)

$8.9 million

29.0%

-0.8%

4.7%

1.5%
Vanguard Dividend Growth (VDIGX)

$2.1 billion

12.0%

-0.7%

3.6%

0.3%
Wasatch-1st Source Income Equity (FMIEX)

$1.3 billion

16.2%

-0.3%

5.9%

1.0%

Source: Lipper; data as of Sept. 10.
- MSN Money and SmartMoney

]]> 3984 2009-09-26 21:13:10 2009-09-27 04:13:10 open open 8-top-funds-for-dividend-hunters publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5819#comments wfw:commentRSS http://zikkir.com/business/5819/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5819 syndication_item_hash dbeab12444972a07c8640f56378f03ae China’s auto exports decline for 12 consecutive months http://www.ethiopianreview.com/business/3983 Sun, 27 Sep 2009 04:15:59 +0000 http://zikkir.com/business/?p=5823 China’s auto exports have declined for 12 consecutive months since August last year because of a big contraction in the international auto market due to the financial crisis.

Starting from the second half of last year, China’s foreign trade experienced a sharp decline, with auto exports from January to July plunging 56.9 percent to 191,000 units, compared to the same period last year, said Commerce Ministry official Zhou Ruojun Tuesday.

China’s January-August exports this year were also down 22.2 percent to 730.74 billion U.S. dollars.

Zhou said China’s auto exports were facing an increasingly tougher situation as there was an apparent rise of protectionism in international trade during the period.

But there were also quality and after-sale service problems frequently found in China-made autos in overseas markets, said Zhao Hang, President of China Automotive Technology and Research Center (CATRC).

He said one important reason was domestic auto exporters lacked knowledge about overseas demand, government policies, regulations, and certification.

To help auto makers gain correct information about major overseas auto markets, the CATRC launched a training session in Beijing Tuesday attended by 12 domestic auto and parts makers. – China.org.cn

]]> 3983 2009-09-26 21:15:59 2009-09-27 04:15:59 open open china%e2%80%99s-auto-exports-decline-for-12-consecutive-months publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5823#comments wfw:commentRSS http://zikkir.com/business/5823/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5823 syndication_item_hash f65440166314006cfceabb39d5c4e140 Energy Parametrics begins construction of management data center http://www.ethiopianreview.com/business/3982 Sun, 27 Sep 2009 04:22:40 +0000 http://zikkir.com/business/?p=5825 Energy Parametrics & Communications Inc. has broken ground on a 51,400-square-foot Sacramento power management data center in the Del Paso Heights area at 2040 Railroad Drive.

The center is expected to serve as a “smart energy command center” for the company focused on environmentally friendly power generation and smart-grid technology. The company did not give an estimated date for completion or the start of operations there.

The new center is the first of several the Texas-based company wants to build throughout the U.S.

“Our new Sacramento data management center will showcase our company’s proven products and services to create safe and reliable green energy generation and power systems management. The site will also serve to train industry professionals and host future green energy conferences,” said Gary Rayward, chief operation officer.

Energy Parametrics last month announced its intent to build a new headquarters in Dallas. – Bizjournals.com

]]> 3982 2009-09-26 21:22:40 2009-09-27 04:22:40 open open energy-parametrics-begins-construction-of-management-data-center publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5825#comments wfw:commentRSS http://zikkir.com/business/5825/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5825 syndication_item_hash ca2591b08aea1c5842eab4365beae7aa Semiconductors Poised To Pop http://www.ethiopianreview.com/business/3981 Sun, 27 Sep 2009 04:26:49 +0000 http://zikkir.com/business/?p=5827 Semiconductors were one of the hottest groups in July off the heels of a multi-month breakout by Intel Corporation (Nasdaq:INTC). At the time, this group, along with the technology sector overall, claimed a leadership role and helped steer the general markets higher as they threatened to begin a much deeper correction. The group as a whole managed to rally to new recovery highs and has held above the July breakout over the subsequent months. The group also remains poised for a follow through, and could be an important tell for the markets moving forward.

Microchip Technology Incorporated (Nasdaq:MCHP) is a nice example of a semiconductor stock that remains poised for more upside. MCHP cleared a nice base in July, and has held the gains nicely. It dipped for a brief moment in September, but quickly found support at a rising 50-day moving average. MCHP remains well above its prior base and near recent highs. A break below the September lows would hint at a test of the breakout near $23.

chart
Source: StockCharts.com

Applied Materials (Nasdaq:AMAT) is another semiconductor stock that has held above the base it cleared in July. However, AMAT has been in the process of testing this breakout as it trades in a tight range between $13 and $14. A breakdown below $12.75 would signify a breakout failure and a continuation of the consolidation, but if AMAT can clear $14, it could mean a resumption of the uptrend. (For more, check out Trading Failed Breaks and The Anatomy Of Trading Breakouts.)
chart1
Source: StockCharts.com

Linear Technology Corporation (Nasdaq:LLTC) gapped above resistance in July, and managed to defend the gap on a pullback in early September. It has been consolidating the breakout for a couple months, and is in the process of testing its rising 50-day moving average as possible support. Overall, the price action remains constructive, and $28 is the level to watch for a continuation on the breakout.
Source: StockCharts.com
Source: StockCharts.com

Applied Micro Circuits Corporation (Nasdaq:AMCC) is an interesting example of a semiconductor stock in that it didn’t rally with the group in July, but remains in a favorable position. AMCC has been in a consolidation for several months, and the trading range is taking on the shape of an ascending triangle. This is often a continuation pattern, and it appears that AMCC is attempting to break out from the triangle. AMCC had been respecting the high $8 range as resistance, until a powerful move higher in early September cleared the base. AMCC is now in the process of pulling back to test the breakout area, and should respect the prior resistance level as support. AMCC has strong buying support near $8 and that remains a key area to watch in the case of a breakout failure.
Source: StockCharts.com
Source: StockCharts.com

Bottom Line
The semiconductors have fallen out of the limelight recently, but remain an important group to monitor. Currently, many of the semiconductors remain poised above bases that were cleared earlier this summer as they continue to consolidate. A move above recent highs could signal a continuation of the breakouts that began a few months ago, and could provide the markets with another shot in the arm.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free! – Investopedia

]]> 3981 2009-09-26 21:26:49 2009-09-27 04:26:49 open open semiconductors-poised-to-pop publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5827#comments wfw:commentRSS http://zikkir.com/business/5827/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5827 syndication_item_hash 00c2381f6a382d14ce563fd33fa0246a Can the EU and the US bridge the gap over banker bonuses? http://www.ethiopianreview.com/business/4016 Sun, 27 Sep 2009 04:30:59 +0000 http://zikkir.com/business/?p=5829 What does Washington make of European proposals for regulating executive remuneration ahead of the G-20 summit in Pittsburgh?
Obama has told US bankers that current remuneration systems are not sustainable
Obama has told US bankers that current remuneration systems are not sustainable

As EU leaders push for the international regulation of bankers’ pay ahead of the G-20 summit in Pittsburgh, Deutsche Welle asked Adam Cohen, a reporter at Dow Jones Newswires, just how much support Brussels is likely to receive from the Washington.

Is US President Barack Obama likely to agree with the European Union and support this plan?

“Well I’m not sure if he’s going to support some of the exact ideas the European leaders discussed, but the general consensus about the need to do something to reign in banker pay – I think there is an international consensus emerging. I mean, Barack Obama made a speech on Wall Street on Tuesday, basically serving notice to bankers that the old compensation practices of the past can’t continue.

If Obama doesn’t endorse elements of the plan when the G-20 meets next week – are the European nations likely to soften their stance yet again?

I think that you’ll see some fractures in the European stance if Obama doesn’t come on board. The UK is particularly worried that without an international agreement, any curbs on bankers’ pay in Europe will lead to a kind of jurisdiction shopping from bankers – that they’ll pay executives in certain regions, and that this could adversely affect London, which is Europe’s main financial center. So there is a UK concern about this, but I think we’re probably not going to see a breakdown on this at this point. I mean, there is a pretty widespread popular outrage about this, and I think governments both in Europe and the US realize that there has to be something done, that you can’t just use vast sums of public money to support banks when they fail without any consequences.

Essentially why is it so important to have America on board in this? Is it because Europe is afraid it’ll lose its competitive edge, that top notch bankers won’t be looking for positions in Europe?

I think that’s the main concern. The idea that if you can’t get a big payday in London but you can in New York, the barrier to moving is not that great, and people will do so, they’ll follow the cash.

In the end, how effective would it really be to cap executive pay as per the European plan?

I’m not sure how effective it would be. The idea that you link pay to performance is not foreign to banks themselves. And the idea that bankers driven by the promise or the lure of great paydays caused this crisis is at best an oversimplification – at worst it’s completely wrong. But it does serve a useful purpose: You can’t use taxpayers’ money to support banks and basically say that bank losses are a public problem, while bank profits are for private distribution.

But the United States’ administration – they’re in consensus with Europe over the argument that public money used to finance banks should not be used to pay bonuses to directors?

I think there is consensus about that. The US, prior to this recent spate of discussions about bankers’ pay, has established a ‘pay czar’ to monitor compensation for banks that receive public money. I think the talk now is about a broader system that will limit compensation in order to prevent single executives or single traders in banks from taking excessive risks with the promise of getting a big bonus at the end of the year.

Interview: Carl Holm for European Business Week on Deutsche Welle Radio – DW-WORLD.DE

]]> 4016 2009-09-26 21:30:59 2009-09-27 04:30:59 open open can-the-eu-and-the-us-bridge-the-gap-over-banker-bonuses publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5829#comments wfw:commentRSS http://zikkir.com/business/5829/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5829 syndication_item_hash a6d11bab289e70166061c3502e689689 Oil hangs near $70 in Asia after big tumble http://www.ethiopianreview.com/business/4015 Sun, 27 Sep 2009 04:32:12 +0000 http://zikkir.com/business/?p=5831 Oil prices were hanging near US$70 a barrel in Asia after falling steeply overnight amid news that China’s crude consumption fell in August.

Benchmark crude for October delivery was up 59 cents at US$70.30 a barrel by late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.

The contract fell $2.33 to settle at $69.71 on Monday.

In other Nymex trading, gasoline for October delivery rose 1.61 cents to $1.7675 a gallon, and heating oil rose 2.12 cents to $1.7729 a gallon.

Natural gas, after tumbling more than 5 per cent, was up 10.5 cents to $3.681 per 1,000 cubic feet.

In London, Brent crude rose 62 cents to $69.33 on the ICE Futures exchange. – Gulf News

]]> 4015 2009-09-26 21:32:12 2009-09-27 04:32:12 open open oil-hangs-near-70-in-asia-after-big-tumble publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5831#comments wfw:commentRSS http://zikkir.com/business/5831/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5831 syndication_item_hash 43e4b1b24fa1570a2d9ebb31857adb36 Hopes Ride on IPO http://www.ethiopianreview.com/business/4014 Sun, 27 Sep 2009 04:34:32 +0000 http://zikkir.com/business/?p=5833 The cleantech sector hasn’t had much in the way of things to cheer about lately. But a battery company’s IPO could change all that.

Clean energy companies are paying close attention to how A123 System's IPO fares in the marketplace, looking at the venture as a bellwether for industry stock.
Clean energy companies are paying close attention to how A123 System’s IPO fares in the marketplace, looking at the venture as a bellwether for industry stock.

The hopes and aspirations of an entire industry are riding on the back of A123 Systems, Inc. as it takes its first step into the public markets this week.

After a year of waiting as the economy and equity markets collapsed, the Watertown, Massachusetts-based lithium-ion battery maker hopes to raise some $225 million through an IPO the week of September 21. The event, the first venture-backed cleantech company to go public this year, will be closely watched by peer companies and industry insiders, many of whom consider the stock sale a bellwether for cleantech investments.

The news comes just a month after A123 secured $249 million in U.S. Department of Energy funding to build an electric-vehicle battery plant in Michigan and five months after Chrysler Group LLC chose it to power the automaker’s line of hybrid electric cars.

“As a CEO of a company that one day hopes to IPO, I think it’s a great sign that the IPO market is back. Ten months or so ago, people thought there would be no IPOs,” said Mitch Tyson, CEO of Wilmington, Massachusetts-based industrial-efficiency product company Advanced Electron Beams. “It revalidates the market. If there’s a great technology with a great story investors might be interested.”

While the market has generally been kind to IPOs this year—the average 2009 IPO stock is up 27 percent year to date, compared with an S&P 500 return of 16.5 percent—analysts consider A123 a real test as to whether investors are ready for the risks associated with earlier-stage companies.

The company does bring significant losses to the table. While A123’s revenue grew to $68.5 million in 2008, from $34.3 million in 2006, its net loss widened to $80.4 million in 2008 from $15.8 million in 2006.

A123 continued on that track during the first half of this year, with revenue more than doubling to $42.9 million over the same period last year and losses growing to $41.2 million, compared with $32.9 million.

“All eyes are on A123 because it’s not in the mold of the ones that have gone before—more developed companies with strong revenues and earnings. Rather, it is a company that is being helped by government spending,” said Kathy Smith, principal at Renaissance Capital in Greenwich, Connecticut.

Private investors rushed to back renewable-energy technology companies over the past decade but have shown few exits to date. Some see A123’s emergence as evidence that, at least in some industries and some technologies, strong returns are there for the taking.

“There’s been a perceptible shift that’s happening in the investor community­—a year ago, six months ago, valuations were terrible. Now, while the metrics are different for different segments, at least a certain segment of the investment community is ready to invest in a certain type of company,” said Thomas Burton, chairman of the cleantech practice at Mintz Levin Cohn Ferris Glovsky and Popeo.

If A123 performs well after its IPO, it may entice others to dip their toes in the public waters, or at least use that as a bargaining chip to draw higher valuations from investors or acquirers, Burton said. Furthermore, if the company’s investors—which include Braemar Energy Ventures in Boston—do well, the proceeds could be used to invest in new companies, unclogging what many cleantech players say is a backed-up startup pipeline. – Portfolio.com

]]> 4014 2009-09-26 21:34:32 2009-09-27 04:34:32 open open hopes-ride-on-ipo publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5833#comments wfw:commentRSS http://zikkir.com/business/5833/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5833 syndication_item_hash d3f2ee5161a89bacfdaa32c00f67b417 Off Balance http://www.ethiopianreview.com/business/4013 Sun, 27 Sep 2009 04:37:01 +0000 http://zikkir.com/business/?p=5835 President Obama says that it’s time to balance the global economy and boost stability by getting China to spend more and compelling the U.S. to spend less.

Scenes like this container port in export-heavy Hong Kong will have to change to bring the world economy into balance.
Scenes like this container port in export-heavy Hong Kong will have to change to bring the world economy into balance.

Americans spend too much money on consumer goodies and save too little for the future. Chinese consumers save a lot for retirement but don’t spend enough along the way.

There is a growing international consensus that something needs to be done about these global economic imbalances. Despite the recession, the U.S. continues to run a trade deficit, and Asian nations such as China have a hefty trade surplus.

President Obama spoke out about the problem over the weekend. “We can’t go back to the era where the Chinese or the Germans or other countries just are selling everything to us, we’re taking out a bunch of credit card debt or home equity loans, but we’re not selling anything to them,” Obama told CNN.

Some economists believe the growing trade and financial imbalances—what’s known as the current account—were a contributing factor to the worldwide recession that began in the U.S. and then spread globally.

“If you have a chronic account surplus or a chronic account deficit, you need to adjust your policies so that your savings and investment rates are in better balance,” says Barry Eichengreen, a professor of economics at the University of California at Berkeley. “We failed to do that in the first half of the decade, when our savings rate was 6 percent below our investment rate. The Chinese failed to do that and had the opposite problem.”

How did imbalances help cause the recession? Many analysts believe that cheap credit helped fuel the subprime crisis in real estate. Paul Blustein, a trade expert at the Brookings Institution, notes that China was recycling its huge dollar surplus into American securities—estimated at $1.5 trillion by some experts—keeping U.S. interest rates low despite efforts by the Federal Reserve to cool the economy. “It helped keep mortgage rates low and keep capital cheap,” Blustein said. The U.S. was able to keep rates low because it always had a ready buyer—China—at auctions for government securities.

The global trade imbalance is going to be a major topic on Thursday at a summit meeting of leaders from the G-20 countries hosted by Obama in Pittsburgh. “We hope to reach agreement on a framework for balanced growth, for agreeing on how to address the imbalances that led to the crisis, and on some process for holding each other accountable,” Michael Froman, deputy national security adviser for international economics, told a press briefing last week.

While the causes of the recession are now well known, the solution is not so simple. One of the possible solutions being sounded out in advance of the G-20 meeting was to give the International Monetary Fund the role of monitoring the world economy for imbalances and then offering advice to fix the problem, though the IMF’s decisions would not be binding.

“We need to have rebalancing of growth and increase in consumption in the emerging markets to have enough growth in the short term,” Dominique Strauss-Kahn, the head of the IMF told the Financial Times. “We also need to define what the long-term growth model will be.”

The problem has already been partially solved: The worst recession since the Great Depression has caused American consumers to cut back sharply on spending. With the economy recovering, will Americans and Europeans load up on Chinese exports again?

Berkeley’s Eichengreen says that by using tax policy and revenue enhancement, the United States can limit the deficit and help encourage Americans to save more and spend less. But he says that for any system to succeed, it will have to be internationally agreed upon and focus on both high-savings nations like China and big spenders like the U.S.

Can Beijing stimulate domestic demand enough to take up the slack left by curtailed spending from the U.S.? It has already tried to do so with a $586 billion stimulus plan that focuses heavily on infrastructure spending, but it also includes subsidies for appliances such as washing machines and refrigerators.

Blustein believes the transition in China could be a lengthy process because Beijing doesn’t have a social security system in place and, consequently, Chinese consumers have to save a lot for retirement and health care. “It takes a heck of a lot of time to build the kind of safety net that they’re going to need to get their economy switched from a high-savings, high-export, low-import type of system,” he said. “It will require a very long time to phase it in and cost a lot of tax dollars.”

In addition, there is also the issue of getting China to allow the value of its currency to rise against the dollar, which would have the effect of slowing exports and raising imports. But China has so far resisted international pressure to float its currency.

This kind of rebalancing requires such a large measure of global cooperation that it may be impossible to achieve a solution in just a few days of meetings. For example, Obama can’t speak for Congress, which sets tax policy. Would the Congress pass tax bills that take China trade policy into account, and would Beijing do the same? In the current climate of tense trade relations, that does not seem very likely. – Portfolio.com

]]> 4013 2009-09-26 21:37:01 2009-09-27 04:37:01 open open off-balance publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5835#comments wfw:commentRSS http://zikkir.com/business/5835/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5835 syndication_item_hash c1c7f2f5a235091f51e5dbeaa1e4cc2f Daqing Oilfield vows to maintain prominence for 50 more years http://www.ethiopianreview.com/business/4012 Sun, 27 Sep 2009 04:38:06 +0000 http://zikkir.com/business/?p=5837 Daqing Oilfield, China’s largest oil producer, wants to retain its prominence in the country’s petroleum industry for another 50 years.

Wang Yongchun, general manager of Daqing Oilfield Co. Ltd, said Tuesday the oilfield would remain an important energy base and continue to contribute a large proportion of China’s energy supplies up to 2060.

Wang said factors such as adequate underground fossil resources, scientific progress and well-trained personnel would help achieve this end.

In accordance with the overall sustainable development plan for the oilfield, it will be capable of producing crude and gas equivalent to between 20 million tonnes and 25 million tonnes from its wells annually by 2060.

This future output will be supplemented by extra crude and gas equivalent totaling between 15 million tonnes and 20 million tonnes from international trade and cooperative development.

Discovered in 1959, development of the Daqing Oilfield began in the next year. It has so far produced more than 2 billion tonnes of crude, accounting for 40 percent of the national total for the same period.

The oilfield produced 40.2 million tonnes of crude oil and 2.76 billion cubic meters of gas (equivalent to 2.76 million tonnes of oil) last year. The oilfied’s accumulated proven oil reserves total 6.36 billion tonnes. – China.org.cn

]]> 4012 2009-09-26 21:38:06 2009-09-27 04:38:06 open open daqing-oilfield-vows-to-maintain-prominence-for-50-more-years publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5837#comments wfw:commentRSS http://zikkir.com/business/5837/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5837 syndication_item_hash effe7b714a4c28fdbc766a81f6066c87 Chinese shares dip more than 2% on weak heavyweights http://www.ethiopianreview.com/business/4011 Sun, 27 Sep 2009 04:38:57 +0000 http://zikkir.com/business/?p=5839 Chinese equities ended 2.34 percent lower Tuesday on weakened heavyweights led by oil producers, following the global crude oil prices plunge a day earlier.

The benchmark Shanghai Composite Index lost 69.46 points to finish at 2,897.55.

The Shenzhen Component Index retreated 1.92 percent, or 231.75 points, to finish at 11,813.46.

Combined turnover fell slightly to 222.77 billion yuan (32.76 billion U.S. dollars) from 231.99 billion yuan on the previous trading day.

Losers outnumbered gainers by 747 to 114 in Shanghai and 637 to 125 in Shenzhen.

Sinopec, Asia’s largest refiner, dropped 3.16 percent to close at 11.33 yuan, and PetroChina, the nation’s biggest oil producer, fell 2.18 percent to 12.99 yuan.

Coal producers also fell, as crude prices may dampen demand for coal as an alternative to oil products. China Shenhua, the country’s largest coal producer, plummeted 3.97 percent to 31.94 yuan.

Steel makers also led losses, with the whole sector down 3.73 percent.

Handan Iron and Steel Ltd., Tangshan Iron and Steel Co., and Chengde Xinxin Vanadium and Titanium Co. each plunged more than five percent, after they resumed trading Tuesday following the approval of the merger of these three makers. Their stocks were suspended from trading starting Sept. 17.

Stocks of the consumer spending sector, such as food producers and home appliance makers, however, rose on expectation of holiday sales during the forthcoming eight-day National Day holidays from Oct. 1 to Oct. 8.

Guangdong Midea Electric Appliances, one of the country’s leading home appliance makers, advanced 1.59 percent to 17.94 yuan.

China Kweichow Moutai Distillery Co., the country’s leading liquor maker, added 2.52 percent to finish at 169.59, after the firm said Monday it would invest 20 billion yuan to nearly double annual output within five to 10 years.

Analysts with Everbright Securities said market sentiment would remain cautious before the National Day holiday, and the market may continue to see corrections as investors wait for new stimulus. – China.org.cn

]]> 4011 2009-09-26 21:38:57 2009-09-27 04:38:57 open open chinese-shares-dip-more-than-2-on-weak-heavyweights publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5839#comments wfw:commentRSS http://zikkir.com/business/5839/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5839 syndication_item_hash 7e952c85de10a7842b94b1200fc7d2e3 China appeals WTO ruling on books, audio-visual products http://www.ethiopianreview.com/business/4010 Sun, 27 Sep 2009 04:39:38 +0000 http://zikkir.com/business/5841 China lodged an appeal on Tuesday over a World Trade Organization (WTO) panel ruling which said its regulations on the import and distribution of books and audio-visual products are not in compliance with world trade rules.

The WTO’s seven-member Appellate Body will now have two to three months to reinvestigate the U.S.-China dispute, and it can uphold, modify or reverse the panel ruling, which was issued last month, the Chinese mission to the world trade body said.

The United States brought the case to the global trade watchdog in April, 2007, saying that China was not providing enough access for imports of publications and audio-visual products. The case involves publications such as books and newspapers, audio and video products including CDs, DVDs and games, and music downloading services.

A WTO expert panel issued its ruling on Aug. 12, largely upholding the U.S. allegations, and it called on China to revise its import regulations so as to bring them in line with WTO rules and China’s obligations in the organization.

The Chinese Commerce Ministry had expressed regret over the panel ruling, saying that “China has always fulfilled its obligations on market access for publications and the channels for foreign publications, films and audio-visual products entering Chinese market are extremely open.”

China has imported approximately 500,000 titles of publications of all kinds every year since joining the WTO in 2001, as promised in its entry agreement, the ministry said. – China.org.cn

]]> 4010 2009-09-26 21:39:38 2009-09-27 04:39:38 open open china-appeals-wto-ruling-on-books-audio-visual-products publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5841#comments wfw:commentRSS http://zikkir.com/business/5841/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5841 syndication_item_hash 1476787f440e8f232782d8e7eeef60ac China sovereign fund to take stake in commodities firm http://www.ethiopianreview.com/business/4009 Sun, 27 Sep 2009 04:40:22 +0000 http://zikkir.com/business/?p=5842 China Investment Corporation (CIC), China’s sovereign wealth fund, is in negotiation with Noble Group, a Hong Kong-based commodities trader, to acquire shares of the latter, said sources with CIC on Tuesday.

“The deal is still waiting for permission from the boards of directors of Noble Group,” said a person with CIC who refused to be identified.

According to a statement released by the Noble Group, the company has reached an agreement with CIC for the Chinese firm to buy 573 million shares for approximately 850 million U.S. dollars, at 2.1137 Singapore dollars per share.

The placement comprised of 438 million newly issued shares by the Noble Group and 135 million shares from trust companies associated with the interests of Noble founder and CEO Richard Elman, according to the statement.

The placement is subject to approvals of the respective boards of directors of CIC and the Noble Group, said the statement.

According to the Noble Group, both companies have agreed to jointly invest in infrastructure assets and supply chain management related to agricultural commodities.

Merrill Lynch (Singapore) Pte. Limited acted as the sole placement agent for Noble Group. J.P. Morgan Securities (Asia Pacific) Limited acted as financial advisor to CIC.

Listed in Singapore, Noble Group is a market leader in managing the global supply chain of agricultural, industrial and energy products.

The CIC was launched in September 2007 with registered capital of 200 billion U.S. dollars from China’s huge foreign exchange reserves. – China.org.cn

]]> 4009 2009-09-26 21:40:22 2009-09-27 04:40:22 open open china-sovereign-fund-to-take-stake-in-commodities-firm publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5842#comments wfw:commentRSS http://zikkir.com/business/5842/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5842 syndication_item_hash 4ac8e90918d93d3bbca8fba8a0197b25 China, Singapore firms sign MOU to enhance rubber trading http://www.ethiopianreview.com/business/4008 Sun, 27 Sep 2009 04:41:10 +0000 http://zikkir.com/business/?p=5844 Singapore Commodity Exchange Limited (SICOM) and Sino Rubber Electronic Trading Market Co., Ltd (Sino Rubber) of China signed in Singapore on Tuesday a Memorandum of Understanding (MOU) to grow their natural rubber markets.

According to a joint press release by the two companies, the MOU aims to establish the strategic partnership, which includes information sharing and joint development of the settlement process for rubber contracts, subject to relevant regulatory approvals.

Li Ming Quan, chairman of Sino Rubber Trading Market Co., Ltd said, “China and Singapore has a long standing relationship. With Asia, particularly China, becoming more prominent in the international arena, this collaboration with SICOM will further support our strategic goal of expanding our reach to international players.”

“We are pleased to co-operate with Sino Rubber, the largest professional market for natural rubber trading in China. We look forward to jointly develop and grow our markets for the benefits of our members. This partnership will reinforce SICOM’s status as the exchange which sets the pricing benchmark for physical rubber, ” said Jeremy Ang, chief executive officer of SICOM. – China.org.cn

]]> 4008 2009-09-26 21:41:10 2009-09-27 04:41:10 open open china-singapore-firms-sign-mou-to-enhance-rubber-trading publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5844#comments wfw:commentRSS http://zikkir.com/business/5844/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5844 syndication_item_hash 08c2a6d770fde319cdeb1fde03779d71 Rolls-Royce boosting Ohio presence http://www.ethiopianreview.com/business/4007 Sun, 27 Sep 2009 05:02:20 +0000 http://zikkir.com/business/?p=5846 Correction at bottom of article

Rolls-Royce Plc has committed to expand fuel cell research and development at its North Canton operations, a move the state says will triple the company’s work force at the northeast Ohio site.

Gov. Ted Strickland said in a release Monday that the company’s Rolls-Royce Fuel Cell Systems subsidiary plans to invest $3 million in equipment at its North American headquarters, which has been housed at Stark State College’s Fuel Cell Prototyping Center since 2006. Robert Grevey, a spokesman for the Ohio Department of Development, said the expansion is aimed at testing fuel cells to eliminate technical risks along the road to the commercial market. Equipment installation is set to begin before the end of the year.

Stark State created that center with the help of Ohio’s Third Frontier initiative in 2003. The Development Department said the Third Frontier program has invested more than $11 million at Stark State since then.

The investment from Rolls-Royce, which employs about 5,700 in the U.S., is expected to lead to the creation of 60 full-time jobs with average wages of about $30 an hour, excluding benefits, by the end of 2012. The company has a payroll of 32 employees at the site. Some of those jobs are coming from the United Kingdom and Singapore, Grevey said.

Rolls-Royce Fuel Cell CEO Mark Fleiner said in a release that the company’s plans come amid a competitive world market for attracting and retaining high-tech industry jobs.

“The commitment of Ohio to support the development of a fuel cell industry, the strong partnership with Stark State College and the close proximity with development partners were key factors in our decision to grow operations in North Canton,” Fleiner said.

Correction:
This story has been corrected to note Rolls-Royce Plc no longer makes luxury automobiles. It sold that business to BMW. – Bizjournals.com

]]> 4007 2009-09-26 22:02:20 2009-09-27 05:02:20 open open rolls-royce-boosting-ohio-presence publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5846#comments wfw:commentRSS http://zikkir.com/business/5846/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5846 syndication_item_hash bea74fd2446e67d2a248c08654f6b4cb Serious Materials raises $60M http://www.ethiopianreview.com/business/4006 Sun, 27 Sep 2009 05:03:24 +0000 http://zikkir.com/business/?p=5848 Serious Materials Inc. said Tuesday it has raised another $60 million in its third round of funding, bringing the total amount of capital it has raised to $120 million.

The round was led by Chicago-based Mesirow Financial. Other new investors included Philadelphia-based Enertech Capital, Silicon Valley-based Cheyenne Partners, and San Francisco-based Saints Capital.

Previous investors including Menlo Park firms New Enterprise Associates (NEA) and Foundation Capital, Redwood City-based Rustic Canyon Partners, Berkeley-based Navitas Capital and Seattle-based Staenberg Ventures also participated in this funding round.

Sunnyvale-based Serious Materials said the funds will be used to accelerate the rapid growth of the company and complete development of energy-saving building products.

Tom Galuhn of Mesirow Financial has joined the company’s board of directors.

Serious Materials develops and manufactures sustainable green building materials including windows and drywall. The company won the Wall Street Journal’s technology innovation award earlier this month in the environmental category and was a runner up for the Silicon Valley/San Jose Business Journal’s Emerging Technology award in a similar category last year. – Bizjournals.com

]]> 4006 2009-09-26 22:03:24 2009-09-27 05:03:24 open open serious-materials-raises-60m publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5848#comments wfw:commentRSS http://zikkir.com/business/5848/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5848 syndication_item_hash dee8f4430bd0426e6b0c5d6de811aa42 Western Pennsylvania gas prices down 2 cents http://www.ethiopianreview.com/business/4041 Sun, 27 Sep 2009 05:59:53 +0000 http://zikkir.com/business/?p=5884 Gas prices in western Pennsylvania dropped more than 2 cents per gallon, continuing a slow but steady decline at the pump, according to the AAA Fuel Gauge Report.

The price for a gallon of regular, unleaded gasoline this week was nearly $2.57 per gallon, down from last week’s average price of $2.59. The national average was $2.54, also down 2 cents from the previous week.

On Monday, crude oil prices were down $2.50 to $69.54 per barrel.

Brookville had the lowest gas prices at $2.46 per gallon, flat with last week. Sharon had the highest at $2.63, though that was 8 cents less than a week ago.

The average price in Pittsburgh was $2.59, AAA said.

The western Pennsylvania region included in the report stretches north to Erie and east to Altoona. – Bizjournals.com

]]> 4041 2009-09-26 22:59:53 2009-09-27 05:59:53 open open western-pennsylvania-gas-prices-down-2-cents publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5884#comments wfw:commentRSS http://zikkir.com/business/5884/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5884 syndication_item_hash f5585a25f5f8be5ae3d83ce2993975a8 Lakeland Electric reduces fuel charges, ups environmental charge http://www.ethiopianreview.com/business/4040 Sun, 27 Sep 2009 06:01:01 +0000 http://zikkir.com/business/?p=5886 Lakeland Electric customers will see their fuel charges decrease.

Effective Oct. 1, fuel charges for residential customers will drop from $54.75 per 1,000 kilowatt-hours to $54.25 per 1,000 kWh. The fuel charge represents the actual costs for fuel used to generate the amount of electricity used by a given residence.

The Lakeland Electric Utility Committee recommended the current change after a utility committee meeting on Monday. The Lakeland City Commission then reconvened and voted in favor of the decrease.

In addition, the commission voted to increase the environmental charge from $1.67 to $2.71 based on the cost of federal and state clean air compliance mandates.

The charge includes all plans made by the utility to meet environmental compliance, such as environmental permitting and lower emission initiatives, and is included in all base charges.

Following these changes, Lakeland Electric rates will be ranked third lowest of the 37 utilities serving Florida residents and the lowest ranked statewide for large commercial customers, a release said.

Lakeland Electric had previously reduced its fuel and energy costs in March. – Bizjournals.com

]]> 4040 2009-09-26 23:01:01 2009-09-27 06:01:01 open open lakeland-electric-reduces-fuel-charges-ups-environmental-charge publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5886#comments wfw:commentRSS http://zikkir.com/business/5886/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5886 syndication_item_hash d9c0973440e68117cfd19243a2b5b6fb Hoku moves forward with construction of plant http://www.ethiopianreview.com/business/4039 Sun, 27 Sep 2009 06:02:23 +0000 http://zikkir.com/business/?p=5888 Hoku Materials has given general contractor JH Kelly the go ahead to complete construction of the polysilicon production plant in Pocatello, Idaho.

The company, a subsidiary of Hoku Scientific (Nasdaq: HOKU) said Tuesday it entered into a change order agreement to confirm the plan for JH Kelly to complete construction.

In July, Honolulu-based Hoku Scientific said its financial troubles forced it to temporarily “slow down” construction of the $390 million plant as it looks for financial investors and ways to consolidate its debt. It still needs to come up with more than $100 million to finish the plant, which it began building in 2007.

JH Kelly then filed a lien against Hoku for $12 million.

Under the terms of the change order, JH Kelly agreed to resume construction once it receives Hoku’s payment of $5 million of the past due amount. JH Kelly agreed not to foreclose on its $12 million lien until after Dec. 1, 2009, and if Hoku makes the $5 million payment by then, Hoku will have until Jan. 14, 2010, to pay the balance of the $12 million that is past due.

JH Kelly also agreed to waive certain interest and other fees, Hoku said.

JH Kelly also reaffirmed its construction schedule. If work is resumed in October, the reactor demonstration will be completed in December 2009; the construction of 2,500 metric tons of polysilicon production capacity will be complete in March 2010; and the entire facility will be complete in December 2010.

“We appreciate JH Kelly’s commitment to seeing this through to completion; they are a one-of-a-kind company, and have more than earned our trust and loyalty,” said Dustin Shindo, chairman and CEO of Hoku Scientific, in a statement.

Hoku had warned back in June that it was running out of financing to cover the plant. The construction has been financed mainly by customers who are paying money up front for future shipments of the material, which is used in making solar panels.

Shares of Hoku stock closed up 2.6 percent at $2.33. – Bizjournals.com

]]> 4039 2009-09-26 23:02:23 2009-09-27 06:02:23 open open hoku-moves-forward-with-construction-of-plant publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5888#comments wfw:commentRSS http://zikkir.com/business/5888/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5888 syndication_item_hash d20d6880a2a19b6d9d2a74b6805659a6 Earnings, sales dip at Versar http://www.ethiopianreview.com/business/4038 Sun, 27 Sep 2009 06:04:36 +0000 http://zikkir.com/business/?p=5890 Versar Inc. posted a slight drop in earnings and sales for fiscal 2009, attributing the dip to the weak economy and a loss on its securities investment earlier in the year, despite increased earnings in the fourth quarter.

Springfield-based Versar, which sells defense, environmental health and safety, and infrastructure revitalization services to the government and private companies, posted net income of $954,000, or 10 cents per share, in the fourth quarter of fiscal 2009, compared to $716,000, or 8 cents per share, in the fourth quarter of fiscal 2008.

Versar earned about $3.17 million in net income, or 35 cents per share, for fiscal year 2009, compared to $3.39 million, or 36 cents per share, in fiscal 2008.

Net income was reduced by $328,000 because of a loss on Versar’s investment in marketable securities, company officials said.

The company generated $112 million in sales for the fiscal year, a 3 percent drop from the $115.6 million in sales for fiscal 2008.

Versar’s (NYSE Amex: VSR) program management, professional services and national security segments experienced upticks in sales, while its compliance and environmental business declined.

Versar increased its operating income by two percent to $5.6 million, boosted by a 60 percent increase in operating income during the fourth quarter of fiscal 2009, compared to the fourth quarter of fiscal 2008.

“I’m very proud of our improved margins and operating income despite relatively flat year on year revenue,” said Ted Prociv, Versar president and CEO.

“This past year we experienced business pressures on many fronts, yet Versar was able to deliver bottom line results comparable with last year’s record performance.” – Bizjournals.com

]]> 4038 2009-09-26 23:04:36 2009-09-27 06:04:36 open open earnings-sales-dip-at-versar publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5890#comments wfw:commentRSS http://zikkir.com/business/5890/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5890 syndication_item_hash e0a887b4e08aa6e7d253d90ea0311154 BrightSource expands land deal http://www.ethiopianreview.com/business/4037 Sun, 27 Sep 2009 06:06:11 +0000 http://zikkir.com/business/?p=5892 BrightSource Energy Inc. has reached an agreement with Nevada’s Coyote Springs Land Company, to expand the acreage of land on which it will build solar thermal power plants. Under the new agreement, BrightSource now can build 960 megawatts of solar power plants on 12 square miles – producing enough power for just less than 500,000 homes.

The site is on private property and is permitted by the Bureau of Land Management, U.S. Fish and Wildlife and other agencies. Key to the economics of utility-scale solar power in the desert, the site also has transmission lines in close proximity to transport the power produced to cities where it will be used.

Oakland-based BrightSource is pursuing sites for 4 gigawatts of solar power plants in the Southwestern United States.

“We recognize that some of these sites will move forward and some may not for various reasons that are a natural part of the development business,” said Keely Wachs, a spokesman for the company.

BrightSource has applied to build power plants on at least 18 sites managed by the Federal Bureau of Land Management. It recently said it had stopped pursuing one site in an area that environmentalists and Senator Dianne Feinstein want to see converted into a National Monument. – Bizjournals.com

]]> 4037 2009-09-26 23:06:11 2009-09-27 06:06:11 open open brightsource-expands-land-deal publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5892#comments wfw:commentRSS http://zikkir.com/business/5892/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5892 syndication_item_hash 9923a733bce9293e280c73c8f90b76f9 LIC Housing Finance: Nicely timed QIP http://www.ethiopianreview.com/business/4035 Sun, 27 Sep 2009 06:09:38 +0000 http://zikkir.com/business/?p=5895 Loan growth would have suffered had the company not mopped up the money.
1

The Rs 658 crore that LIC Housing Finance has picked up should come in handy for its loan disbursements this year, and it doesn’t matter that the equity base will be diluted by about 12 per cent.

The company recently raised 10 million shares, at a price of Rs 658 per share, through a qualified institutional placement (QIP). The home loan firm plans to grow its loan book by about 40 per cent in the current year, a target that appears to be somewhat ambitious even though the economy is now clearly on the mend.

However, Chief Executive R R Nair says, loan disbursements are growing at 70 per cent year-on-year currently and is fairly confident that the target should be achieved as demand is strong. Analysts are looking at a slightly more conservative loan growth of about 28-30 per cent .

However, real estate developers are reporting good demand for smaller homes and LIC Housing’s average loan size, Nair points out, is Rs 13 lakh plus. Under the circumstances, it’s just as well that LIC Housing mopped up the money because it might have lost out on lending opportunities; analysts believe the cash flows generated by it internally may not have been sufficient to fund the loans.

They point out that since the money should be put to use fairly, quickly and not lie around, the return on equity(RoE) should not be depressed for too long, even if it slips somewhat for a couple of quarters. Also, since interest rates are unlikely to fall from these levels, the net interest margin (NIM) should improve gradually.

In the June 2009 quarter, the NIM was hurt as the cost of funds was relatively high when compared with the lending rates, which have been coming off in a decreasing interest rate environment. In the current year, the company is expected to post a net profit of around Rs 625 crore, over the Rs 530 crore reported in 2008-09. The stock has seen a very sharp run up gaining 16 per cent in the past week and at the current price of Rs 817, the stock trades at a somewhat expensive 2 times estimated book value for 2010-11. – Business Standard

]]> 4035 2009-09-26 23:09:38 2009-09-27 06:09:38 open open lic-housing-finance-nicely-timed-qip publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5895#comments wfw:commentRSS http://zikkir.com/business/5895/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5895 syndication_item_hash 405935cdd868af86dd30df30e96d3819 2360 124.217.82.225 2009-10-27 06:02:10 2009-10-27 13:02:10 spam 0 0 Yamaha to enter automatic scooter market http://www.ethiopianreview.com/business/4033 Sun, 27 Sep 2009 06:13:03 +0000 http://zikkir.com/business/?p=5899 Japanese two-wheeler maker Yamaha plans to enter the automatic scooter market in India, in the next three years.

“India has a 1.2-million units a year scooter market, so it has a huge potential. We have plans to enter the scooter segment in another three years or so,” Yukimine Tsuji, CEO of India Yamaha Motors, said. The company also intends to increase its exports targets to touch 1,40,000 units in 2010, and 70,000 units in 2009, up from 30,000 units in 2008.

The company is also targeting around 500 dealers in India by 2009, up from 400 dealers right now. More dealers for the company is expected to increase its presence and penetration especially in rural areas. Tsuji said, “We now have a motorcycle for every segment including the recently launched 153cc Limited Editions Fazer and FZ series models, 150cc R15, 125cc Gladiator, 106cc G5, Alba and Crux models. Our 150cc+ bikes – R15, FZ series and Fazer – have been successful in major metros including Kolkata. Now we want to replicate the same success story in smaller towns as well.”

In a bid to re-establish the global Yamaha image in India, Yamaha has recently announced ‘Yes! Yamaha’ campaign, through which the company aims to provide value to customer.

Yamaha is also running ‘Win Win Win’ campaign for its entire product range to increase showroom traffic and give cash rewards up to Rs 3,001 to consumers purchasing Yamaha bikes. Lucky customers can also win a trip to Thailand. – Business Standard

]]> 4033 2009-09-26 23:13:03 2009-09-27 06:13:03 open open yamaha-to-enter-automatic-scooter-market publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5899#comments wfw:commentRSS http://zikkir.com/business/5899/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5899 syndication_item_hash 0618230ff0a607b26cdebc2c814aea0b ‘Is dual listing of shares a good idea?’ http://www.ethiopianreview.com/business/4032 Sun, 27 Sep 2009 06:15:50 +0000 http://zikkir.com/business/?p=5901 Cross-border M&As get cheaper and easier, but this requires one set of laws – on takeover codes, for instance – for local firms and another for the dual-listed ones.

Sandeep Parekh2
Visiting Associate Faculty, IIM, Ahmedabad

‘The key issue is that a company listed overseas has a major impact on the fortunes of the Indian company, but it has no obligation to make the same level of disclosure that the Indian firm does’

The government of South Africa has been quoted as seeking dual listing of Bharti Airtel and South Africa’s MTN. According to the deal which was negotiated several months ago, Bharti would acquire 49 per cent of MTN which would then acquire 36 per cent of Bharti in an ambitious international merger of sorts. Dual listing implies segregation of the two legal entities which are based and listed in different countries, while maintaining a single economic structure. This structure is in place in very few countries and requires that both companies are managed by a single set of managers, that the Board of Directors is appointed by the two sets of shareholders jointly, and that shareholders of both companies receive identical economic benefit including dividend and capital distribution on liquidation.

While many people have pointed out problems of foreign exchange control regulations and the problem of buying shares in one country and selling them in another, this is in fact the least of the problems. While there are some issues relating to foreign exchange regulation, they can easily be sorted out by changing some of the regulations. Even today, Foreign Institutional Investors (FIIs) can buy and sell as many Indian equity securities as they want with caps only on holdings of an individual company and that too with a single easy-to-get one-time registration. Conversely, an Indian family of four can invest up to $1 million (Rs 4.8 crore) each year abroad. Thus even today’s exchange control laws are not a big constraint. In any case, since the two companies’ shareholders have identical dividend, voting and liquidation rights, there would be no reason for a material price difference between the two companies — this will make buying in one country and selling in another unnecessary.

The much more substantial problem relates to fundamental issues of corporate, tax, securities and even bankruptcy law. Key amongst them is how shareholders of another company — a wholly different legal entity, connected only by a contract and not even listed in India — can influence the voting rights in terms of appointment of directors of the Indian listed company without a re-writing of the Companies Act and a wholesale re-writing of the listing agreement with the Indian stock exchanges. Financial disclosures are required only of the Indian listed company, so another company, which is not obliged to make the disclosures and whose performance is key to the performance of the Indian company, is not legally obliged to have disclosure of financial details of the same standard as those of Indian company. There would also be extensive problems with various tax laws particularly income tax, as different laws would apply to, say, the dividend distribution and to remittance of income instead of dividend. The bankruptcy laws of the country which applies to Indian companies too would not allow transfer of capital distribution on liquidation. To give another instance from securities law, what would be the implication of acquiring over 15 per cent in the Indian company? Would the law require a compulsory tender offer only of the Indian company? Clearly, that would be an outcome that is not consistent with the contract of dual listing or its economics. These are only some of the handful of dozens of issues which will crop up.

Even if there is an aggressive political will to change so many laws, such a transaction would more likely be permissible in 2019 instead of in 2009 — roughly the timeframe in which Delhi has to ready itself for the Commonwealth Games.

(Sandeep Parekh is a World Economic Forum young global leader)

Kartik Ganapathy1
Partner, Nishith Desai Associates

‘Greater flexibility in structuring cross-border M&As, avoiding the takeover-triggered open offers as well as using stock for acquisition are all potential benefits of a dual listing’

Companies and financial investors constantly seek to reduce risk and increase returns. Dramatic changes in markets and regulations are often prompted by these concerns. However, going by news reports, it appears that the Bharti-MTN deal which was expected to have significant consequences seems to have hit a roadblock. It was reported that the South African government requested the Indian government to allow dual listing of the South Africa-listed MTN shares on the Indian bourses.

Dual listing is achieved when a company’s securities are listed on more than one stock exchange (in this case the South African exchange and in India), or by creating an ownership structure of two holding companies, each of which is listed in a different market.

The Indian legal system is yet to recognise the concept of dual listing. Dual listing commonly involves a series of contractual arrangements between two entities, listed in different jurisdictions, so as to achieve economic synergies of a traditional merger along with retaining their separate identities, shareholders and stock exchange listings. Other models of dual listing include the combined entity structure where a jointly held separate entity with pooled assets contributed by its constituent owners is listed, and the ‘stapled stock structure’ where the shares of both entities involved are paired together to inhibit separate trading of each stock.

Theoretically, dual listing contributes to the liquidity of the shares listed. This enables investors to have a greater choice as to where and when they can trade their shares. A significant apparent advantage of a dual-listed structure for companies is the benefit of scale and access to foreign capital.

From a cross-border transaction perspective where various regulatory approvals are required, preserving the existence of both entities by using dual listing company concepts may make these approvals easier to obtain. Enhanced options in structuring cross-border transactions, avoiding takeover-triggered public offerings as well as using stock for acquisition currency are other potential benefits of a dual listing. With the need to synergise two separate legal systems, opportunities abound for dual listing rules to adopt best-of-breed audit and corporate governance standards.

Indian law will require changes to effectively implement dual listing. Company law would require significant changes to facilitate accounting disclosures, prospectus disclosures, financial formats, common board and common shareholder meetings as well as defining the implications of dissolution of one of the dual listed companies. Securities laws would require changes to listing requirements and prospectus disclosures. Exchange control regulations may need to be amended vis-à-vis trading of dual listed stock.

In a dual listed companies structure, the equalisation agreement between the entities and the need for multi-jurisdictional shareholder and board approvals add complexity to both decision-making as well as company function. Audit and compliance cost could be significant as well.

Other countries, such as Australia (BHP-Billiton), have favoured the creation of dual listed companies as a way of ensuring their economies benefit from big business combinations. Dual listing may certainly present challenges in terms of change in law and mindset, and requiring more disclosure and compliance. However, the dual listing benefits of tax-efficient structures, enhanced access to multiple capital markets, better governance, and a higher regulatory standard are hard to ignore.

(Views expressed are personal) – Business Standard

]]> 4032 2009-09-26 23:15:50 2009-09-27 06:15:50 open open %e2%80%98is-dual-listing-of-shares-a-good-idea%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5901#comments wfw:commentRSS http://zikkir.com/business/5901/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5901 syndication_item_hash 24e9b1cde21dddc8e535a191410012d6 RCom capex to decline from this year: Ambani http://www.ethiopianreview.com/business/4031 Sun, 27 Sep 2009 06:17:29 +0000 http://zikkir.com/business/?p=5903 AGM approves Reliance Infratel IPO, filing soon.
1

Reliance Communication’s capital expenditure will decline from this year, mainly due to completion of the GSM network rollout, even as the company is planning to offload a 10 per cent stake in its telecom subsidiary, Reliance Infratel.

“We expect our capex to decline significantly starting this year and continue on a downward trend in the future, particularly in relation to the scale of our expanding operations,” RCom Chairman Anil Ambani told shareholders at its annual general meeting here.

The company’s capital expenditure was over Rs 40,000 crore during the past two years, a substantial portion of which was used for GSM rollout.

“Today, with the peak of our capex cycle behind us, we are expecting to reap the substantial benefits of these investments in the form of strong cash flows and superior customer experience,” he added.

According to Ambani, the company’s balance sheet continues to be strong, with a conservative net debt-equity ratio of 0.53.

RCom is close to filing a Red Herring Prospectus with the Securities and Exchange Board of India “soon” for the proposed Initial Public Offering (IPO) of Reliance Infratel, its tower subsidiary. The IPO was approved at today’s meeting.

The issue would constitute 10 per cent of the post-issue paid-up equity capital of Reliance Infratel, while RCom shareholders would hold 85 per cent stake in Reliance Infratel post the IPO, he added.

“Our decision to demerge was guided by the need to keep ourselves asset-light, improve our return on equity and create value for our shareholders,” he added.

In July 2007, RCom divested 5 per cent of its Reliance Infratel stake for about Rs 1,400 crore ($337.5 million). This deal attributed an equity value of about Rs 27,000 crore ($6.75 billion) to Reliance Infratel.

At present, Reliance Infratel has over 48,000 towers and multiple tenants, including Etisalat DB, S Tel, Aircel, Tata Teleservices and MTS.

RCom is aiming to acquire a total of around 100 million subscribers by the end of this financial year, making it the second operator to cross the mark in a single country. GSM major Bharti Airtel had crossed the mark earlier this year.

Meanwhile, RCom said on Tuesday it had appointed S P Talwar as Director and BSR & Co Chartered Accountants, an Indian associate of KPMG, as auditor of the company. The shareholders have also approved the appointment ofChaturvedi & Shah Chartered Accountants as auditor, Reliance Comm said in a filing to the Bombay Stock Exchange.

Anil forgoes salary for 2008-09

Anil Ambani has not taken his salary and commission totalling around Rs 30 crore from Reliance Communications for 2008-09. Answering a shareholder’s question, he said this was due to recession. – Business Standard

]]> 4031 2009-09-26 23:17:29 2009-09-27 06:17:29 open open rcom-capex-to-decline-from-this-year-ambani publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5903#comments wfw:commentRSS http://zikkir.com/business/5903/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5903 syndication_item_hash 272a4e3ebe1b6ee2598e4df668d833da No Shaadi on BharatMatrimony for now, court orders Google http://www.ethiopianreview.com/business/4030 Sun, 27 Sep 2009 06:18:42 +0000 http://zikkir.com/business/?p=5905 The High Court here granted the owner of bharatmatrimony.com an interim order, restraining Google India from using its ads on the former’s platform to sell space to the petitioner’s competitors.

The order also aplies to three other matrimonial sites, shaadi.com, jeevansathi.com and simplymarry.com.

The complaint of Consim India, which owns the Bharat Matrimony website and four others of a similar nature, all of which names it has trademarked, is that Google is “infringing” its property rights. One of its websites, for instance, is tamilmatrimony.com. And, it says, if a user types ‘Tamil matrimony’, in the Google search field, the advertisements or websites shown include shaadi.com and simplymarry.com, who are its competitors.

In other words, says Consim’s petition, Google is allowing the former’s competition to bid on the trademarks of Bharat Matrimony. It says Google should not be allowed to permit its competition to be linked to the trademarks of Bharat Matrimony, for this is driving the latter’s customers to the competition.

After hearing the case, judge G Rajasuria passed an order restraining Google India and the three other matrimonial sites from infringing or enabling others to infringe on Bharatmatrimony’s registered trademark. This is applicable till the next hearing.

The court also asked Google India not to include the trademark names of Bharatmatrimony in their Adwords or Key word suggestion tool. – Business Standard

]]> 4030 2009-09-26 23:18:42 2009-09-27 06:18:42 open open no-shaadi-on-bharatmatrimony-for-now-court-orders-google publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5905#comments wfw:commentRSS http://zikkir.com/business/5905/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5905 syndication_item_hash b3f30e4f9282c03ce08ea48c5e6e3177 GAIL to source gas from Cauvery basin http://www.ethiopianreview.com/business/4028 Sun, 27 Sep 2009 06:22:57 +0000 http://zikkir.com/business/?p=5909 State-run GAIL India Ltd has signed contracts for sourcing of natural gas from the PY-1 fields in the Cauvery basin.

GAIL signed a long term Gas Sales Contract (GSC) with Hindustan Oil Exploration Company (HOEC) for the PY-1 gas, a company press statement said here today.

The state-run gas utility also entered into a back-to-back agreement to supply the gas from PY-1 to PPN Power Generating Company Pvt Ltd for its power plant at Nagapattinam in Tamil Nadu.

“GAIL supplies are expected to commence shortly,” GAIL said, but did not give the price at which it is buying the fuel. The GSC is for 15 years.

For the first six years, GAIL will buy 51,000 million British thermal unit of gas from PY-1 per day. The duration can be extended on mutually agreed terms.

“GAIL is also entitled to receive additional gas, if any, from the field as per the terms of the contract,” the release said.

PY-1 is a pre-Nelp (New Exploration Licensing Policy) field, the production sharing contract (PSC) for which was signed in October 1995. The field covers an area of about 75 sq km and is situated in the offshore Cauvery basin. HOEC has 100 per cent stake in the field.

HOEC settles gas dispute HOEC today said its ongoing dispute with GAIL in relation to sale of natural gas from the PY-1 Field has been settled.

In a filing to the Bombay Stock Exchange, HOEC said as the operator of PY-1 Field, it had executed a tripartite settlement agreement with GAIL India and PPN Power Generating Company in this regard.

The tripartite settlement agreement entails termination of natural gas sale and purchase agreement with PPN and settlement of the ongoing dispute with GAIL in relation to sale of natural gas from PY-1 field.

HOEC, which has a 100 per cent operated participating interest in PY-1 Field, expects it to generate an annual revenue of more than $65 million upon reaching first plateau production.

The PY-1 is an offshore field of Cauvery Basin.

Shares of the company reacted to this news in a positive manner and surged over 4 per cent in early morning trade to witness an intra-day high of Rs 366.70. – Business Standard

]]> 4028 2009-09-26 23:22:57 2009-09-27 06:22:57 open open gail-to-source-gas-from-cauvery-basin publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5909#comments wfw:commentRSS http://zikkir.com/business/5909/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5909 syndication_item_hash c2c85f4b963d27b33250be5124781dba Planning Commission study says ONGC, OIL gas prices too low http://www.ethiopianreview.com/business/4023 Sun, 27 Sep 2009 06:28:55 +0000 http://zikkir.com/business/?p=5919 A Planning Commission study has said prices of natural gas sold by the public sector companies Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) should be aligned to the price of $4.2 per million British thermal units (mBtu) decided by the empowered group of ministers (EGoM) for Reliance Industries Ltd (RIL).

The study, meant as a supplementary to the Integrated Energy Policy, has said that natural gas prices of these companies have been artificially kept at low levels.

ONGC and OIL produce gas sold under an administered price mechanism (APM). The petroleum ministry has proposed a 44 per cent increase in prices of natural gas sold under the APM. It wants $2.6 per mBtu against a current price of $1.8 per mBtu. However, even after this hike, the price will be significantly lower compared to the price of $4.2 decided by EGoM for the gas produced by RIL from its KG Basin.

“We want to progressively increase the price of APM gas to match the market price,” V L V S S Subba Rao, joint adviser (finance) in the petroleum ministry said earlier this month. At 45 million metric standard cubic metres a day (mmscmd), APM gas currently accounts for over 34 per cent of the country’s 130 mmscmd availability (including the latest production from Reliance’s KG basin). However, the share of APM gas in total availability has been coming down gradually. – Business Standard

]]> 4023 2009-09-26 23:28:55 2009-09-27 06:28:55 open open planning-commission-study-says-ongc-oil-gas-prices-too-low publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5919#comments wfw:commentRSS http://zikkir.com/business/5919/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5919 syndication_item_hash d1e358a70a9120f815c5f716398b9006 Adani group eyeing 100 MT port in Orissa http://www.ethiopianreview.com/business/4022 Sun, 27 Sep 2009 06:29:42 +0000 http://zikkir.com/business/?p=5921 Ahmedabad-based Adani group has evinced interest to set up a large port in Orissa, which will eventually have a capacity to handle 100 million tonne (MT) cargo.

The scope of the project also includes port-based industries like ship building and repairing unit.

The proposed venture will be an all-weather and multi-user port and the company’s preferred location for this is Barunei Muhan in Kendarapara district, official sources said.

Rajesh S Adani, managing director, Adani group, met Chief Minister Naveen Patnaik in the state secretariat on Tuesday and discussed with him the company’s investment proposals.

During the discussion, Adani informed the chief minister that the group had been selected as the Miner Developer Operator (MDO) for the coal blocks allotted to the government of Maharashtra and Gujarat in Talcher Coalfields area.

Both the state governments proposed to set up 2,500-Mw (250×10) power plant at Angul and are in the process of setting up a coal washery. – Business Standard

]]> 4022 2009-09-26 23:29:42 2009-09-27 06:29:42 open open adani-group-eyeing-100-mt-port-in-orissa publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5921#comments wfw:commentRSS http://zikkir.com/business/5921/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5921 syndication_item_hash c4f2aec791e9aada711bf59b0fc39e4a ‘Outlook for end-use industries is showing improvement’ http://www.ethiopianreview.com/business/4021 Sun, 27 Sep 2009 06:30:41 +0000 http://zikkir.com/business/?p=5923 Germany-based BASF, the world’s largest chemical manufacturer, acquired Swiss chemical maker Ciba last year in a $3.27 billion transaction. As part of this, BASF India has started the process to merge with Ciba India, both being stock exchange-listed entities here. PRASAD CHANDRAN, chairman and managing director of the Rs 4,000 crore BASF Group in India and also Head of South Asia, talks to PB Jayakumar on the merger and growth plans here. Excerpts:

How does Ciba’s acquisition help BASF in India? What is the status of the merger process here?
The acquisition of Ciba’s product portfolio and assets offer synergistic benefits and is a perfect strategic fit for us. As a result, BASF will open new routes to market and increase our presence in the plastics and coatings’ chemicals business. By combining the paper businesses, we will create a strong broad technology and service-oriented supplier of choice for customers. Our businesses complement each other in performance products, which includes paper, chemicals, coating effects and care chemicals.

We are in the process of finalising the organisational structures to better serve our customers in all the segments. Any overlap in the functional areas such as back-office service, warehousing, etc is also addressed and we expect to derive some synergy benefits. The integration process is expected to be completed by April 2010. The appointed date for the merger is February 1, subject to approval of shareholders and the Bombay high court. After the requisite approvals, Ciba India Ltd, its cent percent subsidiary, Diamond Dye-Chem, and Ciba Research (India) Pvt Ltd will merge with BASF India Ltd.

What are the growth drivers for BASF in India and what are your plans?
At the moment, BASF is concentrating on consolidating our market position in existing business through local supplies and expansion of customer network in rapidly growing industries, integrating Ciba into BASF and ramping up our current production sites in Mangalore and Thane. Depending on the market demand situation in India, the sites could be expanded very easily. We have identified India and China among our key focus geographies, and in the future we expect these two countries to contribute 20 per cent of our global turnover.

Where does India stand in the global business of BASF? How much of investment will come to India over the next two-three years?
BASF is in India for the past 63 years. BASF has grown both organically and through acquisitions in this market. The acquisition of Pushpa Polymers, the global acquisition of Ciba Holdings AG, acquiring the crop protection business of American Cynamid, divestment of the dyes business to Dystar and sale of the printing ink business, and the acquisition of Engelhard and the construction business from Degusa reflects our approach to the changing business environment in this market.

We are setting up a compounding plant at the Thane site for engineering plastics with a capacity of 9,000 tonnes per annum, with an investment of Rs 17.2 crore. Mechanical work has been completed and we are now running product qualification trials. We are also exploring the possibility of de-bottlenecking of the facility in Mangalore for certain products. In the current environment, we are working towards cost containment. We will remain flexible depending on new ideas or projects coming up.

Has the chemical industry come out of the recent economic slowdown?
In the first half of 2008, most chemical companies were bullish about market demand and the prices for raw materials witnessed historic highs. Orders were booming across the US, Europe and Asia. However, since September 2008, prices for most commodity chemicals started declining sharply on a week-on-week basis. Customers were incurring significant losses on imported raw materials and resorted to cutting production and reducing their inventory.

Since January 2009, there have been some positive signs in the India market, with orders picking up. We’re hopeful that demand will pick up in coming months, as the outlook for end-use industries is showing improvement. In the past, the chemical industry has been growing at a compounded annual 8-9 per cent. This is primarily because of the low per capita chemical consumption in India, as compared to developed countries. We expect the chemical industry to keep growing at the same rate in the mid-term. Polymers and speciality chemicals are expected to grow faster than the others during this period.

Despite a presence in India for over six decades, don’t you think the growth for BASF ($68 billion worldwide) was on a slow track?
If you look at our business, we are manufacturers for manufacturers, offering customised chemistry solutions. Our growth in India is dependent on growth of manufacturing industries. We started (our own) manufacturing units in the country only in the past decade. Many of BASF’s innovations have a direct cost benefit for manufacturers in helping them reduce the number of manufacturing steps. Others are targeted at saving costs for the consumer over the life-cycle of the product.

For instance, BASF is supplying Tata Motors with products and engineering solutions for the Nano car that reduce emissions, enhance fuel efficiency and improve the car’s overall aesthetic look. For this, project experts from BASF’s network worldwide, from Engineering Plastics, Coatings and Catalysts’ divisions worked together for years to make catalytic converters for emission reduction. Tata Motors is using BASF’s material for its plastic air intake manifold in the Nano. The component is produced by Tata Visteon and uses BASF’s Ultramid glass-fibre-reinforced engineering plastic. BASF also provided development support ranging from computer simulation studies in the design phase to component tests in the trial phase, carried out at BASF’s engineering plastics’ technical centres. BASF Coatings has been approved to supply some colours for the Nano and, BASF Polyurethanes’ PU system material fulfilled the technical specification of the seating foam for the Nano. – Business Standard

]]> 4021 2009-09-26 23:30:41 2009-09-27 06:30:41 open open %e2%80%98outlook-for-end-use-industries-is-showing-improvement%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5923#comments wfw:commentRSS http://zikkir.com/business/5923/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5923 syndication_item_hash 1f2976c26b2204c467b010459e2cd30b Tata Steel shifts ‘zero date’ for Kalinganagar plant to Dec http://www.ethiopianreview.com/business/4020 Sun, 27 Sep 2009 06:32:18 +0000 http://zikkir.com/business/?p=5925 After jumping several targeted timelines for resuming construction work for its 6 million tonne per annum greenfield steel project at Kalinganagar in Orissa’s Jajpur district, Tata Steel has finally exuded confidence to start the work on the plant by December this year.

“There is a group of 100-odd anti-displacement people who have held up construction work on our steel plant. However, of late, the district administration has shown resolve in persuading these people and we are going to commence construction work on our steel project positively by December this year”, BK Singh, vice-president (Orissa project) of Tata Steel told reporters here.

Singh admitted that Tata Steel had not been able to resume construction work on the proposed steel plant according to its targeted timelines owing to resistance from the anti-displacement people belonging to the affected villages.

“Tata Steel has already shifted 740 out of the 1,195 families and we are in talks with the rest. The company can kick off construction work on its steel plant even without shifting all the families but displacement being a sensitive issue, we don’t want to thrust anything on the affected people,” Singh said here, on the sidelines of a CII meet on Rehabilitation & Resettlement

Stating that the gory incident on January 2, 2006, which resulted in the killing of 14 tribals,. is still fresh in the mind of Tata Steel, Singh said company preferred to move forward through building bridges of trust and understanding rather than coercion.

Asked if Tata Steel was contemplating to offer shares to the displaced people, Singh said, “We don’t think that offering shares is a good option as the locals in Kalinganagar hardly understand the intricacies of shares and the stock market.”

It may be recalled that during his last visit to Orissa, HM Nerurkar, executive director (India and South-East Asia), Tata Steel Ltd, had announced that the company expected to start construction work on the Kalinganagar plant by middle of August this year.

Tata Steel’s Kalinganagar steel project has been marred by delay of over four years that has scaled up its project cost. The original project cost, which was Rs 15,400 crore, has now gone up to Rs 21,000 crore.

The steelmaker had signed a memorandum of understanding (MoU) with the Orissa government in November 2004 for setting up the integrated steel plant at Kalinganagar.

The protest against Tata Steel’s project is spearheaded by Visthapan Virodhi Jana Manch (VVJM).

VVJM was formed after the death of 14 people in a police firing on January 2, 2006 when the tribals clashed with the police while opposing the construction of the steel plant’s boundary wall.

Meanwhile, Tata Steel had placed orders for construction equipment worth Rs 6,000 crore for the steel plant.

The company had also started offsite steel fabrication for hot strip mills in an area leased out from the state government-owned Industrial Development Corporation (IDC) near Jajpur Road to reduce the construction time for the project. – Business Standard

]]> 4020 2009-09-26 23:32:18 2009-09-27 06:32:18 open open tata-steel-shifts-%e2%80%98zero-date%e2%80%99-for-kalinganagar-plant-to-dec publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5925#comments wfw:commentRSS http://zikkir.com/business/5925/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5925 syndication_item_hash 01524ec57aae32afa9947056bd8b187a Crystal Phosphates plans to set up manufacturing unit in Dahej SEZ http://www.ethiopianreview.com/business/4019 Sun, 27 Sep 2009 06:33:07 +0000 http://zikkir.com/business/?p=5927 Company to invest Rs 25 crore for the project

Crystal Phosphates, an agrochemical company of Rs. 525 crore Crystal Group, based in Haryana, has firmed up its plans to put up active ingredients manufacturing facility in Dahej SEZ at Bharuch. The company will infuse Rs. 25 crore for the project.

The company currently imports active ingredients mainly from China to produce pesticides.

“At present, we have three production units— one in Haryana and two in Jammu and Kashmir. The Gujarat unit will be our fourth facility. Unlike existing three units, which manufacture formulations, Dahej SEZ unit will focus on active ingredients, a key raw material for making pesticides and herbicides”, Ankur Aggarwal, managing director, Crystal Phosphates Ltd today said while launching its product ‘Missile’ in Gujarat. on Tuesday.

The unit is likely to be operational in two to three years time. The company sees Gujarat as a strategic location for its new plant.

“Dahej falls under the chemical zone of Gujarat, where raw material is easily available. Proximity to port is another advantage that the state offers. We plan to export 20 to 25 per cent of active ingredients produced in Gujarat”, he added.

Africa, Egypt and Turkey and other non-European Union countries are on company’s radar for exports. In order to educate farmers about usage of its newly launched product, the company plans to open 200 farmer training centers in Gujarat.

“We will adopt 200 farms across the state, for which we have already started hiring science graduates and post graduates. The farmers will be imparted training with regard to 150 varieties of Kharif and 50 varieties of Rabi crops”, Aggarwal said.

When asked about the impact of scanty rainfall on sales of agrochemicals, he said that the sales might go down by 10 per cent. – Business Standard

]]> 4019 2009-09-26 23:33:07 2009-09-27 06:33:07 open open crystal-phosphates-plans-to-set-up-manufacturing-unit-in-dahej-sez publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5927#comments wfw:commentRSS http://zikkir.com/business/5927/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5927 syndication_item_hash 2913d9759a96c4a53c98ff272df672c3 Rebounding commodity prices power European share rally http://www.ethiopianreview.com/business/4018 Sun, 27 Sep 2009 06:33:59 +0000 http://zikkir.com/business/5929 European shares rose by midday on Tuesday as rebounding commodity prices driven by a weaker dollar reversed a two-day losing run.

By 1055 GMT, the FTSEurofirst 300 index of top European shares was up 1.1 per cent at 1,010.04, regaining the 1,000 mark after falling 0.7 per cent the previous session ahead of this week’s US Federal Reserve meeting and Group of Twenty (G20) summit.

“We are in a bull mode but having seen such a large move in recent months, upside is clearly limited with an awful lot of good news priced in. Being cautious would be the most prudent [strategy] in the days ahead,” said Jawaid Afsar, a dealer at Securequity.

Oil producers were among the top gainers as crude rose in a technical rebound after a 3.2 per cent fall in the previous session and on a weaker dollar.

BP, Royal Dutch Shell, Total and StatoilHydro added 1.2-2.5 per cent.

Also in the resources sector, metal prices bounced, aiding mining shares. BHP Billiton, Rio Tinto, Eurasian Natural Resources, Fresnillo and Anglo American put on 2.5-5.8 per cent.

The VDAX-NEW volatility index fell 3.8 per cent yesterday. The lower the index, which is based on sell and buy options on Frankfurt’s top-30 stocks, the higher investors’ appetite for risky assets such as stocks.

Banks were in favour, with risk appetite improving from the previous session. The banking sector has rallied nearly 172 per cent since early March.

Credit Suisse, Credit Agricole, Deutsche Bank, KBC Groep, UBS and Banco Santander advanced 1.3-3.3 per cent. The European index has rallied more than 56 per cent since hitting a low in March and is up nearly 19 per cent this quarter, on track to post its best quarterly rise in almost a decade.

“After a 55-60 per cent run[-up] in equity markets since early March, investors have come to the view that share prices are somewhat overvalued,” said Jeremy Batstone-Carr, head of private client research at Charles Stanley in London. “We are not convinced by the capacity of the economy to grow strongly… Indeed, there remains a strong risk of a double dip recession either in 2010 or 2011 once the policy stimulus – fiscal and monetary – wears off.”
Interest rates: Fed in no hurry

The policy-setting US Federal Open Market Committee’s decision on interest rates is expected today. Economists expect the FOMC to hold the target range for overnight interest rates steady at zero to 0.25 per cent.

Markets will be looking for any comment indicating the Fed might wind back its stimulus measures given improving macroeconomic data. – Gulf News

]]> 4018 2009-09-26 23:33:59 2009-09-27 06:33:59 open open rebounding-commodity-prices-power-european-share-rally publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5929#comments wfw:commentRSS http://zikkir.com/business/5929/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5929 syndication_item_hash 5074239bf0f9f8fb62194d310d85d1ea European, Asian shares up; US index futures rise http://www.ethiopianreview.com/business/4017 Sun, 27 Sep 2009 06:35:09 +0000 http://zikkir.com/business/?p=5930 European and Asian stocks rose, resuming a six-month rally for the MSCI World Index, amid signs government stimulus measures are helping the global economy to recover US futures advanced.

Samsung Electronics Co and STMicroelectronics NV surged more than 3 per cent as chip prices climbed to the highest level in more than a year. Carnival Corp gained 2.7 per cent in London after Bank of America Corp recommended shares of the world’s biggest cruise-line operator. BHP Billiton led mining companies higher as commodities advanced.

The MSCI World added 0.9 per cent at 11.09 am in London. The index has advanced 66 per cent since March 9 as results at companies from HSBC Holdings to GlaxoSmithKline surpassed projections and the German and French economies unexpectedly exited recessions. The gauge is valued at more than 27 times the reported earnings of its companies, the highest level since 2003.

The rally “can run a bit further,” Georgina Taylor, an equity strategist at Legal & General Group in London, which oversees $456 billion worldwide, said in an interview. “We’re positive on equities. There’s evidence of real economic activity starting to increase.”

The Dow Jones Stoxx 600 Index of European equities gained 0.9 per cent today as all 19 industry groups advanced. Standard & Poor’s 500 Index futures added 0.7 per cent and the MSCI Asia Pacific excluding Japan Index increased 0.9 per cent. Markets in Japan, Malaysia, Indonesia and Pakistan are shut for holidays.

Asian growth
The Asian Development Bank raised its economic growth forecast for the region on strengthening expansion in China, India and Indonesia, and said it’s too early for governments to withdraw stimulus policies. Asia, excluding Japan, will grow 3.9 per cent in 2009, faster than a March estimate of 3.4 per cent, the Manila-based institution said today. Growth may accelerate in 2010 to 6.4 per cent, the bank said.

The Italian government increased its forecast for next year’s economic growth to 0.7 per cent from 0.5 per cent. The economy will shrink 4.8 per cent in 2009, compared with a previous prediction for a contraction of 5.2 per cent, a finance ministry official said today.

The global economy has yet to feel the biggest impact of government-led spending programmes to stimulate demand, according to UK Prime Minister Gordon Brown, who yesterday reiterated concerns about removing them too early.

‘Safeguard a recovery’
“The stimulus that we have still got to give the world economy is greater than the stimulus we have already had,” Brown told reporters in London before his departure today for the Group of 20 (G-20) meeting in Pittsburgh. “What we want to do is safeguard a recovery from a recession we feared would develop into a depression.”

Global leaders meet this week seeking to deliver the broadest financial regulation overhaul since the 1930s, potentially threatening profits and stock prices of banks.

The G-20 convenes in Pittsburgh on September 24-25 to discuss forcing banks to curb leverage, hold more equity capital and keep a greater pool of assets that can be easily traded.

Stocks have rallied since March as the G-20 committed about $12 trillion to revive growth and the Federal Reserve kept overnight borrowing costs near zero to unlock credit markets. The collapse of sub-prime mortgages spurred $1.6 trillion in writedowns and losses at the world’s biggest financial firms.

Fed Chairman Ben S Bernanke’s efforts to stoke a US economic recovery may be undermined by the central bank’s other goal of restoring the banking system to health.

Fed meeting
The Federal Open Market Committee, at the conclusion tomorrow of a two-day meeting, will probably maintain its assessment that “tight” bank credit is impeding growth. Samsung Electronics, the world’s largest computer-memory chip maker, gained 3.4 per cent to 825,000 won in Seoul. The price of the benchmark computer-memory chip climbed 1.1 per cent Monday to the highest level since August 2008, according to Dramexchange Technology.

Separately, Citigroup Inc. raised its price estimate to 1,030,000 won from 900,000 won on expectations earnings will benefit from growing demand for computer-memory chips.

STMicroelectronics, Europe’s biggest semiconductor maker, added 3 per cent to €6.74 and Infineon Technologies, the region’s second-largest, gained 1.3 per cent to €3.64. – Business Standard

]]> 4017 2009-09-26 23:35:09 2009-09-27 06:35:09 open open european-asian-shares-up-us-index-futures-rise publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5930#comments wfw:commentRSS http://zikkir.com/business/5930/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5930 syndication_item_hash ac54c29483557faf33091d457549edab Groundnut exports to EU decline 94% on strict quality norms http://www.ethiopianreview.com/business/4043 Sun, 27 Sep 2009 06:42:19 +0000 http://zikkir.com/business/?p=5932 Groundnut shipments nosedived 94 per cent to the European Union (EU) in the first five months of the current financial year on strict quality norms adhered by exporters to uplift Indian commodity to global standards.

During the five-month period ending August, total shipments of groundnut to the EU fell to 758 tonnes as compared with 12,051 tonnes in the corresponding period last year. India exports 250,000-275,000 tonnes of groundnut of which 12 per cent are exported to EU. The Indian exporters lowered their overseas supplies amid apprehension that the consignments might be rejected if the commodity does not meet the global standards.

On repeated complaints over aflatoxins, a type of fungus, found in several consignments from India, Agricultural & Processed Food Products Export Development Authority (Apeda), in July this year, had issued stringent norms for groundnut exporters.

Since early this year, Indian Oilseeds and Produce Export Promotion Council (IOPEPC) had been asking local exporters to maintain global quality norms to atleast maintain the four per cent contribution of India to the total groundnut consumption of the European Union.

Apeda has framed stringent quality norms in line with GrapeNet and AnarNet for improving the quality of nuts and tracing their origin in case of complaints from buyers. The processed groundnuts exported to EU from the country had received 45 alerts for the presence of aflatoxin in the product. GrapeNet and AnarNet are procedures initiated by Apeda to trace the origin of the exported fruit in case of any fungus presence.

“The primary task for us to maintain 4 per cent market share. Therefore, IOPEPC alongwith Apeda decided to certify export-oriented units where groundnut for overseas shipment is processed,” said IOPEPC chairman, Sajnay Shah.

Normally, India exports about 30,000 tonnes of groundnut to European Union which is estimated to decline significantly because of strict quality norms introduced by Apeda, the authority to which the government has appointed the final certification agency.

As there had been rapid alerts issued against groundnuts and it’s products exported from India, the Indian government has made mandatory registration of contracts with Apeda or IOPEPC. All processing units, grading and selling units and warehouses / godowns connected with exports of groundnuts to EU countries will have to get their units certified. IOPEPC will be the certifying authority for shelling / grading units and warehouses.

Groundnut exports to the European Union may decline this year on strict quality norms issued by Apeda and IOPEPC.

The quality of Indian groundnut for human and bird consumptions has been upgraded to the global standard now from specific customer’s specification standard earlier.

Aflatoxins are a potent group of mycotoxins produced by certain species of bacteria. It has been proved to be the most potent carcinogens. Since, aflatoxin levels cannot be changed to acceptable limits through various processing techniques, therefore, it is essential to control it at initial levels of processing, shelling, grading and warehousing.

Initially, groundnut exports to the EU will decline but, will recover after 2-3 years once overseas importers know the best quality practices adopted by us, Shah added.

About 90 per cent of the groundnut shipped to the EU is used for direct human consumption while 10 per cent is consumed as a mix for bird food. – Business Standard

]]> 4043 2009-09-26 23:42:19 2009-09-27 06:42:19 open open groundnut-exports-to-eu-decline-94-on-strict-quality-norms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5932#comments wfw:commentRSS http://zikkir.com/business/5932/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5932 syndication_item_hash 17b8a49ded7db03cc558fbd2509420b1 Higher prices force pepper importers to buy from Brazil http://www.ethiopianreview.com/business/4042 Sun, 27 Sep 2009 06:43:57 +0000 http://zikkir.com/business/?p=5935 The black pepper prices in India are poised for a weaker phase globally due to poor offtake by major buying countries such as the US and EU, though the supply of the spice is weak.

Major buyers are shifting to Indonesia and Brazil which at present are supplying the ASTA grade variety at $2,900 and $3,000 a tonne respectively. The ASTA grade prices in India are around $3,075-$3,100 a tonne. So, major demand is fulfilled by Indonesia and Brazil.

Confusing reports over the stock in Indonesia makes it difficult to judge the market positions. Most of the exporters said that Indonesia, at present, has a valid stock of around 5,000-7,000 tonnes. This is sufficient for supply in the next three months. So, only India and Vietnam will face a shortage as the next season is still 90 days away. It is reported that Vietnam is not in a hurry to clear the available stock, hence it may not reduce the price substantially. But the pricing strategy of Brazil and Indonesia will decide the movement of global pepper market.

At present, India has no demand from the domestic as well as the global markets. Demand for the winter season is also weak due to higher prices.

A depreciation of $50-$100 a tonne is expected as the overseas demand is rather weak. Major buying nations are also not in a hurry, but the demand by re-sellers will be a crucial factor in the market.

Meanwhile, pepper imports by the US from India have dropped heavily in July. US imported 366 tonnes from India against 760 tonnes in the same month last year. The main reason for this is India’s price tag, which is the highest across the world. – Business Standard

]]> 4042 2009-09-26 23:43:57 2009-09-27 06:43:57 open open higher-prices-force-pepper-importers-to-buy-from-brazil publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5935#comments wfw:commentRSS http://zikkir.com/business/5935/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5935 syndication_item_hash e2e9c1da7af2daa00e747b05963e4866 Drought to keep India’s cooking oil imports at record http://www.ethiopianreview.com/business/4092 Mon, 28 Sep 2009 08:11:28 +0000 http://zikkir.com/business/?p=5937 India, the biggest vegetable oils buyer after China, may import record volumes for a second year after a drought in almost half the country damaged oilseed crops, a processors’ group said.

Purchases in the year starting November 1 may rise as much as 6 per cent to 8.5 million tonnes, Ashok Sethia, president of the Solvent Extractors’ Association of India, said on Tuesday. Palm oil will account for more than 80 per cent of the total purchase, he said.

Production of India’s monsoon-sown oilseeds, mainly peanuts, may drop as much as 1.5 million tonnes after the weakest rainfall in at least seven years forced farmers to plant fewer acres, the association said. Record imports by the nation may sustain a 29 per cent rally in palm oil prices in Malaysia this year.

“The import taps are open, and shortages will be met through imports,” Sethia said in Kolkata.

December-delivery palm oil increased 0.4 per cent to 2,190 ringgit ($631) a tonne on the Malaysia Derivatives Exchange September 18. Markets in Malaysia and Indonesia, the top producers, are shut on Tuesday for holidays.

Prices may remain in a 2,000-2,500 ringgit a tonne band until November and gain about 10 per cent by the year end, Sethia said.

India’s vegetable oil imports in the 10 months ended August jumped 49 per cent to 7.07 million tonnes, the association said on September 14. Purchases of crude palm oil gained 29 per cent to 4.2 million tonnes, and soybean oil gained 63 per cent to 823,190 tonnes.

Crop area
Farmers sowed oilseeds to 16.74 million hectares, compared with 17.98 a year earlier, because of drought, Sethia said. A revival in rains in the past month has increased soil moisture, likely helping early sowing of winter rapeseed crop, he said.

The government must restore taxes on edible oil imports during the harvest of monsoon crop and planting of the winter crop to ensure farmers get remunerative prices, Sethia said. “You need farmers to boost cultivation to cut dependency on imports,” he said.

India abolished import duty on crude palm oil in April last year, and in March lifted a 20 per cent tax on crude soybean oil purchases. The two commodities are substitutes. Refined edible oils are taxed at 7.5 per cent.

The country relies on imports to meet half its cooking oil needs and buys palm oil from Indonesia and Malaysia, and soybean oil from Argentina and Brazil. – Business Standard

]]> 4092 2009-09-28 01:11:28 2009-09-28 08:11:28 open open drought-to-keep-india%e2%80%99s-cooking-oil-imports-at-record publish 0 0 post syndication_item_hash 504156ac7cb7a6a7f327e8183dabb887 syndication_permalink http://zikkir.com/business/5937 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/5937/feed rss:comments http://zikkir.com/business/5937#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Make Or Break Time For Palm http://www.ethiopianreview.com/business/4087 Mon, 28 Sep 2009 08:17:25 +0000 http://zikkir.com/business/?p=5947 Palm (Nasdaq:PALM) has dazzled the marketplace with new smart phones in 2009, but the company is up against the clock to translate its impressive technological innovation into profits for shareholders. Its fiscal Q1 results reported yesterday had some bright spots, but also left the company with room for improvement.

A Second Wind
The launch of its Pre smart phone has certainly given Palm new signs of life and reinvigorated the long-term prospects for a company that has been up against the ropes. Palm did not specify how many units of the Pre it sold during its Q1, but overall the company shipped 823,000 smart phones during the quarter which marked a 134% increase over Palm’s preceding quarter. Analyst estimates have put sales of the Pre at around 500,000 units for the device’s first quarter on the market. (Learn how to gather all the pieces before you start to put together your puzzle The Flow Of Company Information.)

The Pre now gives Palm a fighting chance against the iPhone from Apple (Nasdaq:AAPL) and Blackberrys made by Research In Motion (Nasdaq:RIMM). At the present, Sprint Nextel (NYSE:S) is the exclusive U.S. carrier of the Pre, but Palm will look to expand the distribution of this smart phone in 2009 when Verizon (NYSE:VZ) will added as a carrier. Palm has also cut the price of the Pre by $50 and has unveiled its Pixi smart phone which is positioned to be a more economical alternative to the Pre and is set to debut before the holiday season.

More Dilution
Palm finished its Q1 well ahead of analyst estimates, but still finds itself in the red. The company reported a non-GAAP loss of $0.10 per share compared to Wall Street’s expectation of a non-GAAP loss of 25 cents per share. Analysts are expecting Palm to remain in a net loss position for the better part of the company’s 2010 fiscal year, but swing to a profit in 2011.

In addition to announcing its Q1 results yesterday, Palm also said that it would be doing a secondary equity offering of approximately 16 million shares of common stock. Given the firm’s negative cash flow situation, this was a financially prudent decision. Unfortunately, it is a better deal for Goldman Sachs (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM), who underwrote the deal, than it is for Palm shareholders who will face additional dilution. Palm already did a sizable secondary offering earlier this year. (These investments can add a new level of diversification to your portfolio, read Alternative Assets For Average Investors.)

The Bottom Line
The company is churning out some intriguing new smart phones which the Palm hopes can set it back on the road to profitability. It is running out of time though. If the Pre and the Pixi are unable to reverse the company’s financial difficulties in the upcoming quarters, I am not sure that investors will continue to wait on hold all that much longer. – Investopedia

]]> 4087 2009-09-28 01:17:25 2009-09-28 08:17:25 open open make-or-break-time-for-palm publish 0 0 post syndication_item_hash a536338c13a199058e36602df61bebf1 syndication_permalink http://zikkir.com/business/5947 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/5947/feed rss:comments http://zikkir.com/business/5947#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir The wisdom of restraint http://www.ethiopianreview.com/business/4116 Mon, 28 Sep 2009 08:22:55 +0000 http://zikkir.com/business/?p=5959 The third G-20 summit begins on Thursday amidst a general sense of relief about the state of the global economy. The group will take credit for having appreciated the severity of the crisis last November and evoking very strong policy responses from its member countries, which have clearly proved to be effective. Having notched up this success, the agenda for the Pittsburgh summit will reflect the group’s rising ambitions to address significant long-term global issues like trade and climate change. It is tempting to see the G-20 as a forum that will help to break through the deadlocks that plague these issues in the more technically driven forums whey they are being discussed. Twenty world leaders may well find, in a couple of days of conversations, enough common ground to provide strong direction to negotiators from member-countries as they engage in subsequent rounds of talks on both issues. From this perspective, the global benefits accruing from an active and effective dialogue among leaders in the G-20 can be significant, even if the G-7/G-8 achieved precious little over the last three decades.

But it is important, particularly from the viewpoint of India and the other emerging economies in the group, not to get swept away by the moment. As compact a group as the G-20 is, its membership reflects the extremes of the spectrum of views on both trade and climate change issues. The complexity of the issues and the need to analyse the consequences of a range of negotiating positions on various domestic stakeholders make it imperative that the process of dialogue between technically proficient representatives of various countries provide the foundation for any agreement. These could certainly be helped by direction and signals emanating from G-20 summits. But they could also be pushed in directions that are not exactly in the best interests of at least some member countries. The compulsion to be seen as having arrived at a consensus is very strong in such relatively small groups. Leaders from countries such as India, which are battling against the imposition of a US and European agenda on both trade and climate change, run the risk of weakening their positions in these negotiations by appearing to be part of a broad consensus in the G-20. The fact remains that the US and Europe carry significant clout in the forum and will not hesitate to combine forces, notwithstanding their visible differences on issues relating to financial regulation. Especially after the fiasco of Sharm el-Sheikh, where he seems to have got carried away by the moment, Manmohan Singh needs to go to Pittsburgh with a clear sense of the pressures, both overt and subtle, that he and others will face to align their positions with an apparent G-20 consensus. It must also be recognised that the government needs to buttress its negotiating positions in other, larger forums in which any agreements will actually be worked out. This involves both technical capability and co-ordination with other countries in similar positions. In such a high-stakes game, you can never have too many experts or too many friends. – Business Standard

]]> 4116 2009-09-28 01:22:55 2009-09-28 08:22:55 open open the-wisdom-of-restraint publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5959#comments wfw:commentRSS http://zikkir.com/business/5959/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5959 syndication_item_hash 6b6c20b5b0b702ff36e8734a55bcaa3c Crompton Greaves: The outlook improves http://www.ethiopianreview.com/business/4115 Mon, 28 Sep 2009 08:23:51 +0000 http://zikkir.com/business/?p=5961 1

The Crompton Greaves management says the outlook for business is better, both at home and overseas, and that it will not lower its guidance.

Some time ago, it had toned down the guidance indicating that revenues in the home market would grow between 12 and 14 per cent, but that it seems will not be revised further. The company’s order book doesn’t seem to have grown too much over the past year — the consolidated order book stands at Rs 6,300 crore of which two-thirds belong to the power division and the rest to the industrial products division.

The management, however, says orders are coming in though the benefits will be felt only in 2010-11. Analysts believe revenues from the company’s international subsidiaries are likely to grow only in single digits this year.

Crompton’s June 2009 quarter numbers were not too bad — the stand-alone operating margins expanded 210 basis points to 14.8 per cent, driven by the deflation in the prices of raw materials. However, stand-alone revenues were up just 8.4 per cent while the rise in consolidated revenues of Rs 2,200 crore, was even lower at 7.6 per cent.

Crompton plans to list Avantha Power over the next 12-18 months. The Street had been somewhat upset when Crompton announced plans to pick up 41 per cent stake in Avantha Power for Rs 225 crore and the stock lost nearly 10 per cent on a single day.

Avantha, a promoter group company, was valued at Rs 550 crore and analysts had observed that while there was no doubt a good long term story in power, the cash on the company’s books — around Rs 300 crore — could have been put to use in the core business.

At Rs 312, the Crompton stock trades at close to 15 times estimated 2010-11 earnings. Since, earnings are expected to grow at a compounded 17 per cent between 2009-11, the stock isn’t particularly cheap. – Business Standard

]]> 4115 2009-09-28 01:23:51 2009-09-28 08:23:51 open open crompton-greaves-the-outlook-improves publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5961#comments wfw:commentRSS http://zikkir.com/business/5961/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5961 syndication_item_hash e37a6f0450cc55d67b40709596905f18 Newsprint rates may rise 11% http://www.ethiopianreview.com/business/4105 Mon, 28 Sep 2009 08:52:23 +0000 http://zikkir.com/business/?p=5981 This may fail to help producers as they are losing out to cheaper imports.

Newsprint prices, which have remained depressed for the last three quarters, are set to move up by about 11 per cent in the next quarter. With international suppliers announcing a price hike of $50-60 a tonne from next quarter, domestic producers are contemplating a similar increase.

However, the hike might not help the domestic producers who have been losing out to cheaper newsprint imports (at nil duty). Industry officials said that nearly half of the domestic capacity has either shut down or shifted to the writing and printing paper.

Industry players expect this year’s domestic output falling to 600,000 tonnes from 850,000 tonnes in the previous year. This indicates imports to be in the region of over 1.2 million tonnes which is an all-time high. In 2008-09, imports stood at one million tonnes. Annual domestic newsprint consumption is estimated at 1.8 million tonnes.

“The producers are losing heavily at current price of $450 a tonne (for the 45 gm per square metre or GSM variety). In our case, we are losing $100 on every tonne. The cost of waste paper, which is the main input, has moved up from about $110 a tonne in November last year to $190 a tonne and we require 1.4 tonnes of waste paper for producing every tonne of newsprint. Even energy cost has jumped due to rise in coal prices,” said P S Patwari, executive director, Emami Paper Mills. The company has a newsprint capacity of 130,000 tonnes.

“Mills have been bleeding due to lower realisation. While the price increase for the next quarter is almost certain, another hike in the quarter beginning January looks inevitable,” said V D Bajaj, executive director, Rama Newsprint and Papers.

However, he added that an encouraging factor for the Indian producers was that newsprint consumption was still positive as compared to the US and even some European nations.

The government had brought down the import duty to nil in February last year when newsprint prices were at a high of $800-850 a tonne. “With a crash in prices to $500, the five per cent duty should be restored,” Patwari said. Industry sources also said that the continuous surge in imports would cripple the domestic industry.

“The foreign suppliers are selling newsprint to India at a price which is much lower to their domestic realisation. However, since only small quantities are supplied to India, it does not affect their overall realisation,” said another newsprint producer. – Business Standard

]]> 4105 2009-09-28 01:52:23 2009-09-28 08:52:23 open open newsprint-rates-may-rise-11 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5981#comments wfw:commentRSS http://zikkir.com/business/5981/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5981 syndication_item_hash be80b75ca46f2eba5b4db5fff7e18523 Cement may weaken in second half, says CMIE http://www.ethiopianreview.com/business/4104 Mon, 28 Sep 2009 08:53:08 +0000 http://zikkir.com/business/?p=5983 Cement prices are expected to weaken across cities in the second half of 2009-10, Centre for Monitoring Indian Economy (CMIE) said in its monthly report.

“Cement prices are expected to weaken in second half of 2009-10 as 35 million tonnes of fresh cement capacity will come onstream, which will put pressure on the realisations of companies,” CMIE said.

The southern region, which would add around 19 million tonnes of new capacity, would witness the maximum pricing pressure. In the north, infrastructure development activity for the Commonwealth Games in 2010 would keep the demand strong and restrict price fall, it said. In fact, the cement prices softened in August after being on an uptrend for six consecutive months.

In the Mumbai market, average wholesale prices were ruling at Rs 257 per 50 kg bag, Rs 3 lower than the high of Rs 260 per bag. The cement prices was ruling at Rs 253 per 50 kg bag in August 2008. It went up to Rs 260 per bag in May and June 2009. In the south, prices fell in the range of Rs 4-12 per bag. However, prices continued to rise in the north and the east due to a strong demand.

CMIE said the leading cement producer ACC’s production is expected to grow by nine per cent in FY 10 driven by a strong demand from the infrastructure projects and housing construction. – Business Standard

]]> 4104 2009-09-28 01:53:08 2009-09-28 08:53:08 open open cement-may-weaken-in-second-half-says-cmie publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5983#comments wfw:commentRSS http://zikkir.com/business/5983/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5983 syndication_item_hash 30f06d73cf6f3941a559e5428f421ab4 Nifty crosses 5,000, Sensex near 17,000 http://www.ethiopianreview.com/business/4102 Mon, 28 Sep 2009 08:54:42 +0000 http://zikkir.com/business/?p=5987 The National Stock Exchange Nifty closed above the 5,000 mark for the first time in 16 months on Thursday after second-quarter advance corporation and personal income tax collections registered positive growth.

Advance corporation tax and personal income tax collections grew 14.7 per cent and 1.7 per cent, respectively, in the quarter ended September 15, as against the fall of 3.7 per cent and 44 per cent, respectively, in the first quarter.

The Securities and Exchange Board of India’s (Sebi’s) plan to simplify norms for foreign portfolio investments improved the sentiment.

The Bombay Stock Exchange (BSE) Sensitive Index, or Sensex, touched an intra-day high of 16,943.49, up 202.19 points. It closed at 16,886.43, up 145.13 points.

The Nifty closed above the psychological mark of 5,000 for the first time since May 22, 2008. The index rose 44.15 points on Thursday and closed at 5,020.20.

Financial sector stocks gained after Finance Minister Pranab Mukherjee hinted that the Reserve Bank of India would keep policy rates low. Mukherjee had said in Bangalore on Saturday that India’s equity index was moving “steadily” and the authorities would avoid disturbing the pattern. The country’s biggest housing loan provider, HDFC, surged 5.30 per cent, SBI (1.41 per cent), HDFC Bank (1.50 per cent) and ICICI Bank (0.96 per cent).

Among sectoral indices, the IT index led the rally with a rise of 1.91 per cent. The FMCG index rose 1.63 per cent on hope of increase in sales in the festival season. Hindustan Unilever gained 1.28 per cent. The automobile index rose nearly 1 per cent on the back of improving demand for vehicles. Maruti Suzuki climbed to its all-time high of Rs 1,685.90, a gain of 1.27 per cent. Bajaj Auto touched its life-time high of Rs 1,535. Tata Motors advanced 2.60 per per cent.

All sectoral indices, barring the oil & gas index, ended in the positive zone on the BSE.

Bharti Airtel declined 3.28 per cent while Reliance Industries was down marginally.

Jitendra Panda, senior vice-president, Motilal Oswal Financial Services, said, “IT and banking sectors played a major role in on Thursday upmove. However, oil & gas stocks are seen to be losing ground. Markets are expected to be volatile due to the derivatives expiry this week with resistance at higher levels.”

Alex Mathews, head, research centre, Geojit BNP Paribas Financial Services, said, “The market moved up in the morning due to support from the Asian markets. On the domestic front, FMCG, IT and auto sectors gave strong support. The market looks strong with a target of 5,100 before the September futures expiry.”

Hong Kong’s Hang Seng index was up 228.29 points, while the Shanghai Composite declined 69.45 points. The Japan Stock Exchange was closed on Thursday. – Business Standard

]]> 4102 2009-09-28 01:54:42 2009-09-28 08:54:42 open open nifty-crosses-5000-sensex-near-17000 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5987#comments wfw:commentRSS http://zikkir.com/business/5987/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5987 syndication_item_hash 3106e50ffc51297c17919a56876c4d44 _edit_lock 1254242419 _edit_last 1 Nifty likely to revisit 4,750 http://www.ethiopianreview.com/business/4101 Mon, 28 Sep 2009 08:55:24 +0000 http://zikkir.com/business/?p=5989 The Nifty finally did it. The index on Thursday zoomed past the 5,000-mark and closed at 5,020 on fresh buying in technology, FMCG, realty and auto stocks. The current level, in fact, shows a lot of investor optimism about the Indian markets.

The surge in US index futures and firm European markets suggest that the market will open on a positive note tomorrow.

On the short-term charts, the indices are technically highly overbought, and hence a pullback can be seen after the Nifty entered the 5,100-5,150 zone, says Gautam Shah, technical analyst at JM Financial. He expects the index to revisit the 4,700-4,750 zone anytime in the next two-four weeks before the uptrend takes it to the medium-term target of 5,550. Month October has a bad track record and hence volatility can be expected, says Shah.

The trading volume in the Nifty options suggests that the index is likely to remain range-bound in the next two trading sessions, and may even target 5,100 during intraday trade. The 5,000 put options of the September series hold the second-highest open interest (OI), and hence the current series is expected to close around this level. The Nifty October futures witnessed rollovers of 5.40 million shares. These futures were at a premium of 24 points to the spot on Thursday.

The Bloomberg data suggest that the increase in OI was mostly through buy-side trade, indicating long rollovers. However, the rollovers in the October series were considerably lower at 11.98 million shares, compared to 23.04 million shares same time last month. This means bears are expecting the index to move up further from the current level, and hence only bulls are rolling over their positions. Among the index heavyweights, good rollovers were seen in HDFC, HDFC Bank, ICICI Bank, Infosys Technologies, Larsen & Toubro, Reliance Industries and State Bank of India. This means extension of the current rally into the next month. – Business Standard

]]> 4101 2009-09-28 01:55:24 2009-09-28 08:55:24 open open nifty-likely-to-revisit-4750 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5989#comments wfw:commentRSS http://zikkir.com/business/5989/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5989 syndication_item_hash 7da39915a01bd866336e092da0da42a7 Daily turnover will double to Rs 3,200 cr by fiscal-end: NMCE http://www.ethiopianreview.com/business/4100 Mon, 28 Sep 2009 08:56:13 +0000 http://zikkir.com/business/?p=5991 The National Multi Commodity Exchange (NMCE) was confident of doubling its daily turnover in the next six months, Anil Mishra, chief executive officer of the bourse, said.

“Currently, the daily turnover of the exchange is more than Rs 1,600 crore both sides, up 566.66 per cent from around Rs 240 crore last year during the same period. We are confident that our daily turnover will almost double by the end of the current financial year (April-March),” Mishra said.

Mishra said the bourse’s daily turnover had risen sharply due to introduction of a trading session in the evening in September last year.

“The evening session has improved our bullion and metals trade, which were negligible earlier. We have started focusing on various stakeholders in these sectors. The results of our past efforts will further reflect in our turnover figures,” he said.

Mishra said the bourse’s turnover had already surpassed the previous year’s total of Rs 1.23 lakh crore by over 24 per cent in the April-August period.

Similarly, NMCE’s total volume in the April-August period stood at over 80.15 trillion lots, up 9 per cent from the previous year’s total turnover of 73.50 trillion lots, Mishra said.

“The bourse’s membership has increased due to the evening session. Currently, we have 350 members as against 200 last year. We are aiming to further add 150 members by the end of this financial year,” said the CEO of the city-based exchange.

Focused commodities
Mishra said though the bourse was seeing a good improvement in other commodities, its prime focus would remain rubber, coffee and sacking futures.

“We have the highest penetration in rubber, coffee, and sacking futures in India, and we are number one in these commodities. Our strategy will be strengthening our performance in other commodities and maintaining the growth in these three futures,” he said.

NMCE’s rubber futures volume in the April-August period stood at over 3.77 trillion lots, up 70.58 per cent from the total volume of 2.21 trillion lots in 2008-09, data provided by the exchange showed.

The exchange’s coffee volumes during April-August stood at 2.84 trillion lots as against the total turnover of 4.38 trillion lots in 2008-09.

NMCE’s sacking futures volume in the period under review stood at 5.41 trillion lots, as against the total volume of 7.99 trillion lots in the previous year.

Disaster recovery
The official said the bourse was planning to set up another server to replicate the exchange’s data to ensure smooth trade.

“The next step after bringing the ODIN technology is setting up another server for disaster recovery. The new server will have all the data that our main server has. In case the main server stops working due to some disaster, we will be able to just switch to the replica server and trade will not be disrupted even for a second,” Mishra said.

On July 15, NMCE signed a pact with Financial Technologies to bring ODIN platform. Mishra said the bourse was in talks with some technology providers within and outside the country. However, he refused to divulge any names at this stage.

He said the exchange would require around Rs 40 crore to upgrade its technology infrastructure.

More branches
Mishra said NMCE was also planning to open more branches within the next two-three years.

“We are planning to open two more branch offices, one each in Jaipur and Indore, which will increase our performance in mustard, guar, and soyoil futures,” he said.

Mishra also said NMCE was planning to hire experts for marketing the exchange into the interior parts of the country.

He said with other programmes such as branding, and training, the cost of these efforts will come to around Rs 40 crore.

Fund raising
Mishra said the exchange required about Rs 80 crore to fund expansion and the management planned to raise these funds by diluting 20 per cent stake through fresh equity.

“Many investors have shown interest. The exchange is evaluating. We are looking at the valuation depending on their role in the exchange. If they are pure investors, the valuation will be higher, but if they bring strategic value to the exchange, (a) little discount will be considered,” he said.

He added the exchange was in talks with some financial institutions within and outside the country and stakes would be sold according to the guidelines of the Forward Market Commission. – Business Standard

]]> 4100 2009-09-28 01:56:13 2009-09-28 08:56:13 open open daily-turnover-will-double-to-rs-3200-cr-by-fiscal-end-nmce publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5991#comments wfw:commentRSS http://zikkir.com/business/5991/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5991 syndication_item_hash 6785b002d020807d4dcd356907b1bc9e NSE, BSE volumes show y-o-y decline in August http://www.ethiopianreview.com/business/4099 Mon, 28 Sep 2009 08:57:14 +0000 http://zikkir.com/business/?p=5993 While the key benchmark equity indices, Sensex and Nifty, have regained momentum and are trading at their yearly highs, the volumes have declined. Volumes in cash and derivatives segments declined 14 per cent and 6.3 per cent, respectively, on a month-on-month basis in August 2009, according to a study by domestic research house IDFC-SSKI.

The trading volume in the cash segment stood at $100 billion while in the futures and option (F&O) segment, the volume was $304 billion. On a month-on-month basis, the overall volumes (cash & derivatives combined) declined 8 per cent in August.

“Trading volumes had gone down last month as markets were indecisive. However, it has been noticed that volumes in September have stabilised and there will not be any significant decline,” said Nikhil Vora, senior analyst at IDFC-SSKI.

On a year-on-year basis, the volumes have risen 52 per cent to $404 billion compared with the August 2008 levels. Last year in August, the Sensex was hovering between 14,000 and 14,700 levels while in August 2009, it was trading around 16,000.

The market share of two top equity exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), stood at 25 per cent and 75 per cent, respectively.

However, the average daily turnover on NSE rose 1 per cent to around $18 billion.

The domestic markets will see increased participation from next month as the Delhi Stock Exchange, in which the Financial Technologies group holds 5 per cent, will commence trading on its platform. The exchange has 2,800 listed companies and around 150 registered brokers.

Apart from this, the Madras Stock Exchange (MSE) signed a memorandum of association with NSE last month that would allow its members to trade on NSE. MSE has 1,350 members. – Business Standard

]]> 4099 2009-09-28 01:57:14 2009-09-28 08:57:14 open open nse-bse-volumes-show-y-o-y-decline-in-august publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5993#comments wfw:commentRSS http://zikkir.com/business/5993/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5993 syndication_item_hash 166a1c165ffd32e9dc114b40a706d485 India ‘waking up’ to extended period of high growth: UBS http://www.ethiopianreview.com/business/4098 Mon, 28 Sep 2009 08:58:04 +0000 http://zikkir.com/business/?p=5995 India may be “waking up” to an extended period of high-trend economic expansion that will cause incomes to triple over the next decade, according to UBS.

“India is about to resume an extended period of high economic growth,” Philip Wyatt, a senior economist at UBS in Hong Kong, said in a report today. The pace of expansion may average about 8.6 per cent annually over the next 10 to 15 years.

Faster growth is crucial to Prime Minister Manmohan Singh’s goal of cutting poverty in a nation where three quarters of the population of 1.2 billion live on less than $2 a day. Singh, who won a second five-year term in May, has said that India needs a sustained expansion rate of 9 per cent to improve the livelihoods of the poor and create more jobs.

A higher savings rate, helped by a younger population and export-led industrialisation are among the main factors that will drive a sustainable step-up in economic growth, UBS said.

“We think the stage is set for rising manufactured exports and industrialisation, possibly explosively, over the next 10 to 15 years as India takes some export share away from China’s over-arching dominance,” Wyatt said.

Companies including Volkswagen, Toyota Motor Corp and other car manufacturers have announced plans to spend more than $6 billion through 2012 to build factories in India.

Suzuki Motor Corp, Hyundai Motor Co and Nissan Motor Co are making India a hub for overseas sales, helped by cheaper labour and a surging domestic market.

Exports double
Maruti Suzuki India’s exports more than doubled to 79,860 units this year. The company aims to ship 130,000 vehicles in the year to March, 86 per cent more than last year, according to Chairman RC Bhargava.

A younger population will also drive growth, Wyatt said. “The dependency ratio continues to drop and has at least another 10 years worth of distance to go before flattening out like Japan in the 1960s or Korea in the 1970s,” he said.

India’s per capita income may triple in the next ten years and rise by about 5 times by 2025 to well over $10,000 from the present $3,000, Wyatt wrote. Higher incomes will result in higher consumption for items like steel, cement and oil, he said.

“If we take individual commodities like steel, cement and oil we can observe that India is entering the zone of accelerating consumption per capita,” according to UBS.

India’s $1.2 trillion economy expanded 6.7 per cent in the year to March 2009. That compares with an average growth rate of about 8.8 per cent in the previous five years. – Business Standard

]]> 4098 2009-09-28 01:58:04 2009-09-28 08:58:04 open open india-%e2%80%98waking-up%e2%80%99-to-extended-period-of-high-growth-ubs publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/5995#comments wfw:commentRSS http://zikkir.com/business/5995/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5995 syndication_item_hash 490d6448bece39d42aebc8060357d965 Takeover Code change to impact Bharti-MTN deal http://www.ethiopianreview.com/business/4097 Mon, 28 Sep 2009 08:58:52 +0000 http://zikkir.com/business/?p=5997 Open offer must for all future GDR/ADR issues with voting rights.

In a move that could have implications for the talks between Bharti and South Africa’s MTN for a cash-and-share-swap deal, the Securities and Exchange Board of India (Sebi) today decided to amend the Takeover Code to mandate an open offer if American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) with voting rights cross the prescribed threshold.

Under the Takeover Code, a stake acquisition of more than 15 per cent triggers the open offer requirement. Depository receipts, however, were not considered part of this requirement until they were converted into Indian shares.

But with overseas investors increasingly seeking voting rights, the market regulator decided to amend the norms even as the Takeover Code drafted over a decade ago was being reviewed by an expert committee, Sebi Chairman C B Bhave told reporters at a press conference in Mumbai today. At present, the depository exercises voting rights on behalf of holders of ADRs and GDRs.

Today’s decision by Sebi, taken at a board meeting in Mumbai, reversed an “informal guidance” in July that had exempted MTN from making an open offer to Bharti shareholders. At that time, Sebi had said an open offer would be triggered only once the GDRs issued to MTN and its shareholders by Bharti Airtel were converted into local shares with voting rights.

But Bhave today said any informal guidance from a department was always subject to review by the board.

In May, Bharti said it would acquire 49 per cent in MTN and, in turn, the South African company and its shareholders would acquire an approximate 36 per cent economic interest in Bharti, of which 25 per cent would be held by MTN with the remainder held directly by MTN shareholders. MTN’s shareholding would be in the form of GDRs. This arrangement fell just short of outright merger that would have raised myriad complex regulatory hurdles in both countries.

With a holding of 25 per cent, MTN could have exercised voting rights even without converting the underlying shares into Indian securities. With the latest amendment, the South African firm would have to make an open offer.

In a media statement, a Bharti spokesperson said, “We can confirm that the structure, under discussion with MTN will be fully compliant with the laws in both countries. All relevant approvals, including exemption from open offer from Sebi (if required), would be sought at the appropriate time.”

Earlier in the day, Mittal met Prime Minister Manmohan Singh and is understood to have discussed a few contentious issues like dual listing and exemption from open offer to be availed by MTN, according to a PTI report.

Legal experts said Sebi’s decision would have a major impact on the $23-billion deal and both companies would have to go back to the drawing board to change the details of the merger agreement, leading to further delays.

Talks on a deal, potentially the largest in the global telecom business, started in May this year and a second deadline is due to lapse on September 30.

“You can’t be issuing GDRs without voting rights since the underlying nature of a GDR is that it gives the holder control over the equity of a company with voting rights. Sebi has done the right thing by removing the differentiation between GDRs that are converted into equity and GDRs with voting rights,” said one company law expert.

The company law expert, however, added that “it makes no sense for MTN to put in money in Bharti and have no voting rights. That is why they have to look for a different structure, which is dual listed companies, and that will take time.”

Dual listing allows for the two telecom companies to stay as separate entities but listed in each others’ stock exchanges and run by a common board. This model is intended to address the sensitivities of the South African government which has reservations about one of its largest companies delisting from the Johannesburg stock exchange in the event of a merger.

A team from South Africa is currently holding talks with Indian authorities on this issue. Bhave said the company had not discussed the issue with Sebi. Sources said that the issue of dual-listed entities had to be first cleared by the Reserve Bank of India since it involved full capital account convertibility.

In separate decisions, the regulator also approved other amendments to the Takeover Code that mandated the disclosure of acquisition or sale of 2 per cent or more in a company. Under the new norms, shareholders with a 15 to 75 per cent stake in a company would be required to make the disclosure, against the earlier threshold of 15 to 55 per cent. – Business Standard

]]> 4097 2009-09-28 01:58:52 2009-09-28 08:58:52 open open takeover-code-change-to-impact-bharti-mtn-deal publish 0 0 post syndication_source_uri http://zikkir.com/business syndication_source zikkir rss:comments http://zikkir.com/business/5997#comments wfw:commentRSS http://zikkir.com/business/5997/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/5997 syndication_item_hash f22686ecff8ed7e13afab3319656fd02 PF regulator mulls handling corporate pension funds http://www.ethiopianreview.com/business/4096 Mon, 28 Sep 2009 08:59:47 +0000 http://zikkir.com/business/?p=5999 The Pension Fund Regulatory and Development Authority (PFRDA) will consider a proposal to manage the pension funds of companies at its board meeting tomorrow, extending its role from being manager of individual pension plans.

The issue has been raised after PFRDA received proposals from the State Bank of India (SBI), the country’s largest lender, and the Himachal Road Transport Corporation (HRTC) to manage their employees’ pension funds.

These companies and the PFRDA will, however, have to sort out certain issues before the idea takes off. Currently, for instance, records for individual retirement plans under the new pension system (NPS) are maintained by the central record-keeping agency, National Securities Depository Ltd (NSDL). To keep costs low, SBI and HRTC want to avail of the facilities of the fund manager only and not of the record-keeping agency.

“They want to keep record-keeping with themselves because they have been doing so for sometime. We are saying you must take the full architecture and not only one aspect of it. We are going before the PFRDA board tomorrow to take a view on it,” PFRDA chairman D Swarup told Business Standard on Tuesday.

The fund management charge comes to 0.0009 per cent of the assets under accumulation, which is less than one paisa per Rs 100 against the Rs 350 annual fee that NSDL charges for individual subscribers. The companies also want flexibility to negotiate charges with the fund manager.

In August 2008, the government had decided to offer the NPS to all citizens on a voluntary basis. The fund managers appointed by the PFRDA are SBI, UTI Asset Management, ICICI Prudential Life Insurance, Reliance Mutual Fund, IDFC Mutual Fund and Kotak Mahindra Mutual Fund.

Wednesday’s board meeting will also decide on the framework for the withdrawable Tier-II account of the NPS that is slated for launch on December 1. For Tier-II accounts, investors must have an active Tier-I account. The same investment pattern that is applicable to Tier-I will also be applicable to Tier-II account holders. Tier I accounts, which were launched in May, do not permit withdrawal while Tier- II works like a savings account with flexibility to withdraw at any time.

“We have decided all the features of Tier-II accounts. There is total flexibility in terms of how much you want to invest and when you want to invest and withdraw. We do not want to put any cap on the amount deposited or withdrawn. There will be no additional administration cost. But there is a transaction cost to be paid to the point of presence and the record-keeping agency,” Swarup said.

The meeting to finalise the recommendations of the Swarup committee on investor awareness and protection is also scheduled for Wednesday.

“We are going to place before the committee the views from the consultation paper. The committee will take a view on whether we need to moderate the draft recommendations. Final recommendations should hopefully be ready before the end of the month,” Swarup added. – Business Standard

]]> 4096 2009-09-28 01:59:47 2009-09-28 08:59:47 open open pf-regulator-mulls-handling-corporate-pension-funds publish 0 0 post syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/5999/feed rss:comments http://zikkir.com/business/5999#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash a43e90a279693fdc526b84771af2542e syndication_permalink http://zikkir.com/business/5999 Primary markets set for fireworks after Diwali http://www.ethiopianreview.com/business/4095 Mon, 28 Sep 2009 09:03:34 +0000 http://zikkir.com/business/?p=6001 Pricing worries remain, but bankers expect IPOs to raise over Rs 40,000 crore in the next few months.

For the primary markets, the fireworks are expected to begin after Diwali with merchant bankers expecting initial public offerings (IPOs) to raise at least Rs 40,000 crore in the second half of the year.

Add to that the qualified institutional placements (QIPs), another favourite route to raise money, and the final figure could be much higher.

Sanjay Sharma, MD, Equity Capital Markets at Deutsche Equities India, said with the economy showing signs of revival, India Inc will need money for growth and to strengthen their balance sheets. So they will tap the primary market through IPOs, follow-on offerings and QIPs.

IPOS SINCE JUNE ‘09
Date Company Issue amt
Jun 4, ‘09 Rishabhdev Technocable 29.70
Jun 23, ‘09 Mahindra Holidays & Resorts India 277.96
Jul 14, ‘09 Excel Infoways 48.17
Jul 20, ‘09 Raj Oil Mills 114.00
Jul 28, ‘09 Adani Power 3016.52
Aug 7, ‘09 NHPC 6038.55
Aug 27, ‘09 Jindal Cotex 93.40
Aug 31, ‘09 Globus Spirits 75.00
Sep 7, ‘09 Oil India 2777.25
Total 12470.55
Source: BS Research Bureau (in Rs cr)

Power companies such as GMR Energy, Indiabulls Power and JSW Energy are expected to lead the charge along with public sector companies such as Bharat Heavy Electricals and NTPC. Today, Reliance Infratel also announced its intention to raise Rs 5,000 crore from the primary markets.

Ravi Kapoor, MD of South Asia Capital Markets at Citi, says he expects many more IPOs and QIPs in the coming months.

A Prime Database study found that public sector companies benefit a great deal when they get listed on the stock markets. In fact, four of them — Power Finance Corporation, Power Grid Corporation, Rural Electrification Corporation and NTPC — made valuation gains of up to 200 per cent after they were listed.

Many say the rush of companies tapping foreign institutional investors for QIPs will also increase, with several big-ticket deals expected shortly. While Axis raised a sizeable amount this week, Aditya Birla Group company Hindalco has also joined the queue with a $500-million issue.

There are about 60 others waiting for an opportune moment to tap this relatively easy way of accessing FII money.

Although the future looks bright on the primary markets front, there are some worry signals as well. For example, most of the IPOs so far received enthusiastic response but the stocks’ performance has been lacklustre after listing. Several of them are trading at a discount to the issue price, raising concerns over whether the issues were priced right.

After NHPC’s subdued listing and subsequent performance on the market, many said the issue could well have been overpriced — a reason retail investors were not so enthusiastic about the Oil India offer. High net worth individuals also burnt their fingers in the previous IPOs, being unable to meet IPO financing requirements.

The OIL issue was subscribed 54 times, but retail investors bid just 1.14 times – a concern that has led many bankers to say careful pricing is important for companies to avoid a sell-off, especially as the economic climate remains uncertain. Prithvi Haldea, chairman and managing director of Prime Database, says there are apprehensions and caution in the IPO market because some of them did not generate large scale retail subscriptions.

“But this may change in the future because there is a strong IPO pipeline of good companies that are expected to hit the markets during this year or early next year,” he says.

Citi’s Kapoor added that issuers should expect reasonable valuations, but investors should understand the risk associated with the equity investment and look at medium to long-term only for returns.

However, Pramod Menon, JSW Energy’s CFO, says the company isn’t concerned about pricing its issue, because the earlier power IPOs received excellent response from FIIs and long-term investors. “Companies like us have a good portfolio of existing generating projects and a good pipeline of power projects that will be commissioned in near future. So we hope that our IPO will generate good response and there is no apprehension at this point of time on our plans.”

On QIPs, the rush seen a couple of months ago had lost steam mainly because of Sebi’s decision to fix a floor price for such issues. When prices are stable, it is likely that the average price may be higher than the floor, creating a mismatch: investors won’t put in money if the prevailing market price is lower than the price according to the Sebi formula.

An investment banker says he knows at least 10 companies that were unable to complete QIPs due to unfavourable pricing. There are also many examples of companies expressing the intention to raise Rs 500 crore, but ending up with just Rs 200 crore. But companies now have come to terms with the new formula and are finding ways around it, he says.

Many players are also expecting more structured products given the fact that the market is maturing. One of them could be non-convertible debentures with warrants. HDFC, for example, raised Rs 4,000 crore through this product recently and its warrants are traded at a premium on the stock markets. – Business Standard

]]> 4095 2009-09-28 02:03:34 2009-09-28 09:03:34 open open primary-markets-set-for-fireworks-after-diwali publish 0 0 post syndication_item_hash fc8cbef935194e1f94608c98825888cb syndication_permalink http://zikkir.com/business/6001 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6001/feed rss:comments http://zikkir.com/business/6001#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Banks in the deep South Sweaty days http://www.ethiopianreview.com/business/4094 Mon, 28 Sep 2009 09:05:05 +0000 http://zikkir.com/business/?p=6003 There’s peanuts left in GeorgiaThere’s peanuts left in Georgia

SUMMER in America’s deep South is usually a mixture of backyard barbecues, baseball games and sweet tea. This year, however, there has been no respite for regulators trying to contain the banking crisis. On August 21st BBVA, a Spanish lender, agreed to rescue, with government support, Guaranty Bank, a failing Texan firm with $12 billion of deposits. Across the Gulf of Mexico, in sweltering Georgia, things look worse. The state accounts for a fifth of the 100 or so bank failures in America since the start of 2008.

There may be more to come. Each week the Federal Deposit Insurance Corporation (FDIC) announces more failures in America. It has a secret list of more than 300 “problem banks” that are at risk of going broke, most of them small-town lenders. To identify bad banks, analysts are again using the “Texas ratio”, which compares non-performing loans to core capital and was popularised in the savings-and-loan crisis two decades ago. An alternative is to track where the FDIC sets up temporary offices. One is in Irvine, California, close to IndyMac Bank, which failed last year. There is a 500-man operation in Jacksonville, Florida, that has been placed deliberately close to Georgia.

What explains the FDIC’s modern-day siege of Atlanta? There were “too many banks to begin with,” says Dan Blanton, the head of Georgia Bank and Trust, a local community bank. Until the late 1990s most banks were run with county charters which restricted them from branching outside their own small patches of turf. Even today each of Georgia’s 159 counties has multiple banks to provide locals with southern hospitality, mortgages and current accounts. According to Joe Brannen of the Georgia Bankers Association, Georgians have “more affection for community banking” than people elsewhere.

Many of these community banks became overextended during the state’s economic boom. Over the past decade Georgia’s population has grown by 1.5m; thousands are still thought to be moving in each month. Property development surged in tandem. Georgia’s small banks were unable to meet the increasing demand for construction loans with slow-growing local deposits, so they began to offer high-yield certificates of deposit to out-of-state customers. As a proportion of funding, Georgia’s banks were twice as reliant on these as the average American bank. When the financial crisis struck, this “hot money” quickly left the state.

Although small, community banks were not isolated from systemic problems. They banded together in “participations”, a kind of multi-bank loan particularly common in Georgia, thanks to Silverton Bank, a prominent broker of syndicated deals. Known as the “banker’s bank”, Silverton was founded by a consortium that included about 200 Georgia lenders. When it was forced to liquidate in May, with more than 500 such group loans on its books, it caused a systemic problem for other banks in the state. Some of the defaulted loans were obscure and fiddly. One involved more than 60 Georgian banks funding land acquisitions on the outskirts of Phoenix, Arizona.

Yet whatever the structure of Georgia’s industry, the root cause is that bankers just got too optimistic. Banks fail, Mr Blanton says, when they “let the bucket fill up too much.” With few healthy banks left locally the most likely buyers of struggling lenders are outsiders, including foreign banks keen to expand their presence or private-equity firms. That latter prospect improved on August 26th when the FDIC agreed to lower restrictions that had been proposed for non-bank investors. Even then, however, for Georgia’s banks things are pretty far from being peachy. – The Economist

]]> 4094 2009-09-28 02:05:05 2009-09-28 09:05:05 open open banks-in-the-deep-south-sweaty-days publish 0 0 post syndication_item_hash 1e76b6e2f573d4aaeffa0544820517ee syndication_permalink http://zikkir.com/business/6003 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6003/feed rss:comments http://zikkir.com/business/6003#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Coming stimulus to exceed that already seen – Brown http://www.ethiopianreview.com/business/4093 Mon, 28 Sep 2009 09:06:29 +0000 http://zikkir.com/business/?p=6005 UK Prime Minister Gordon Brown said the global economy has yet to feel the biggest impact of government-led spending programmes to stimulate demand and reiterated concerns about removing them too early.

“The stimulus that we have still got to give the world economy is greater than the stimulus we have already had,” Brown said yesterday before his departure today for the Group of 20 meeting in Pittsburgh.

“What we want to do is safeguard a recovery from a recession we feared would develop into a depression.”

Politicians in Britain are calling for the government to put the brakes on spending and to focus on curbing the budget deficit that next year will exceed 12 per cent of gross domestic product, the most in the G20.

The International Monetary Fund in April estimated that fiscal stimulus packages between 2008 and 2010 amounted to 3 per cent of GDP for the UK, 3.2 per cent for the US and 2.9 per cent for Japan.

Brown is seeking support for a formal series of meetings between world leaders to coordinate economic policies and tackle problems ranging from trade imbalances to bonus pay earned by bankers.

Brown said economic recovery was not yet guaranteed, adding to comments from US President Barack Obama who last week said the unemployment rate “could even get a little bit worse, over the next couple of months”.

French Finance Minister Christine Lagarde, who will also be in Pittsburgh along with President Nicolas Sarkozy, echoed those sentiments.

The G20 needs to “give a very strong signal that they will continue the stimulus plans,” Lagarde said on France Inter radio. “We’ve stopped the freefall, but we must continue to underpin the economy.”

Britain and the US are proposing similar measures to get national governments to steer economic policy so that future imbalances can be unwound before they damage the system.

“By meeting at Pittsburgh, we are looking at how we can put in place for the future the mechanism or path that can lead us to either making decisions about better ways of creating growth that is sustainable in the future, a better early warning system for the world economy about potential crises, a better way of resolving difficulties or imbalances around the world,” Brown said.

He suggested that China, India and South Korea, which have had surpluses in recent years, favour his measures as much as the US, which joined Britain in maintaining deficits.

“I have been talking to many countries in Asia as well as in Europe, and I have been talking to President Obama and others, and I believe that there is support for that framework,” Brown said.

The G20 accounts for about 85 per cent of the world economy. The Pittsburgh talks will be the third summit of its leaders in the past year. Its members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the US, the UK and the European Union. – Gulf News

]]> 4093 2009-09-28 02:06:29 2009-09-28 09:06:29 open open coming-stimulus-to-exceed-that-already-seen-%e2%80%93-brown publish 0 0 post syndication_item_hash 32fe8f45bf1b9d0d9b8652d3cea468de syndication_permalink http://zikkir.com/business/6005 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6005/feed rss:comments http://zikkir.com/business/6005#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Share placing aims to raise UK Coal £100m http://www.ethiopianreview.com/business/4162 Tue, 29 Sep 2009 00:32:46 +0000 http://zikkir.com/business/?p=2475 UK Coal aims to dig itself out of a cash flow hole by raising £100 million from investors.

The Midlands and Yorkshire miner said it is raising the money through a firm placing and open offer backed by 28% shareholder John Whittaker, the northern property baron.

UK Coal, which last month reported an £81 million half-year loss, needs the money to plug the gap between now and the end of a major investment programme in its mines early next year and the kick-in from later in 2010 of new coal supply contracts on vastly improved prices.

Chief executive Jon Lloyd said that the group’s cash flows had been constrained by its £110 million investment in new richer seams at its Thorseby and Kellingley mines, as well as legacy contracts with coal-burning power stations at much lower prices than are available today.

As a result, the group’s debts have risen to £147 million and are expected to peak next year at £250 million.

The share offer has been priced at 75p, a 38% discount to last night’s close.

Advisor Gleacher Shacklock and underwriters Evolution and Numis are sharing fees of £6.5 million to get the UK Coal stock away.

- By Robert Lea | Evening Standard

]]> 4162 2009-09-28 17:32:46 2009-09-29 00:32:46 open open share-placing-aims-to-raise-uk-coal-100m publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2475#comments wfw:commentRSS http://zikkir.com/business/2475/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2475 syndication_item_hash 29a1a7a308e1016df0a2fb7eeb1f37f7 £6.7m makes it bright for Climate Exchange http://www.ethiopianreview.com/business/4163 Tue, 29 Sep 2009 00:32:46 +0000 http://zikkir.com/business/?p=2472 Carbon, the big new tradeable commodity of the 21st century, is sending profits soaring at The Climate Exchange.

The company, which runs the European Climate Exchange on Bishopsgate in the City and the Chicago Climate Exchange, reported half-year profits of £6.7 million, double where they were a year ago with trading volumes up 250% on the 12 months.

The Climate Exchange is taking advantage of European Union emission trading schemes and their US equivalent. These schemes mean large polluters such as coal-fired power stations have to buy carbon permits to continue to operate.

They can do this through the Climate Exchange, where carbon permits are sold by renewable energy firms such as wind-farm operators or efficient industrial companies that have reduced their carbon output and have a surplus of permits to trade.

“We have not only grown our business at a tremendous pace but more importantly continued to consolidate our number one position in terms of market share both in Europe and the US,” said chief executive Neil Eckert.

- Evening Standard

]]> 4163 2009-09-28 17:32:46 2009-09-29 00:32:46 open open 6-7m-makes-it-bright-for-climate-exchange publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2472#comments wfw:commentRSS http://zikkir.com/business/2472/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2472 syndication_item_hash 1f0fa649a07ac7936ed8358e548bca11 Chemring boom time with an £80m US buy http://www.ethiopianreview.com/business/4161 Tue, 29 Sep 2009 00:32:46 +0000 http://zikkir.com/business/?p=2485 Defence group Chemring today spent £80 million buying a US engineer specialising in the controlled explosions used during space missions.

Hi-Shear’s pyrotechnics are used for functions such as creating the small blast that separates spent fuel tanks from rockets and blowing off the canopy of a fighter plane before firing an ejector seat.

The business will be put into Chemring’s energetics division – most easily described by insiders as “anything that goes fizz, bang or whoosh”.

Chemring said Hi-Shear would position the company to benefit from the development of the next generation of Patriot-3 anti-ballistic missiles.

Chief executive David Price said at the start of the year that takeover deals were unlikely because sellers were still pricing their companies too highly but revised his view in May when he predicted deals in the pipeline. Today’s is the first such deal.

Last year the group spent about £100 million on four takeovers, and the Hi-Shear deal is not likely to be the last of 2009.

Price used a new banking facility from Lloyds to fund the takeover.

- By Jim Armitage | Evening Standard

]]> 4161 2009-09-28 17:32:46 2009-09-29 00:32:46 open open chemring-boom-time-with-an-80m-us-buy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2485#comments wfw:commentRSS http://zikkir.com/business/2485/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2485 syndication_item_hash 22eb6f263d4a1d14e1c77c49b1f72c45 Music business presents united front on filesharing http://www.ethiopianreview.com/business/4160 Tue, 29 Sep 2009 00:32:46 +0000 http://zikkir.com/business/?p=2494 But the industry remains divided on whether it wants filesharers to have their web access suspended

The music industry claims to have reached a unified position on illegal filesharing but it remains unclear whether it will maintain its demands for persistent filesharers to be suspended from the internet.

In a statement ahead of a 29 September deadline for comments in the government’s illegal filesharing consultation, umbrella group UK Music says “government intervention is extremely welcome”.

The position statement follows the emergence of opposing views within the music industry over the last fortnight. Artists including Blur drummer Dave Rowntree have attacked government proposals to suspend the internet connections of persistent filesharers.

But the record labels and industry lobby groups have welcomed the prospect of such laws.

UK Music head Feargal Sharkey said last night the group had joined with the Entertainment Retailers’ Association and the Music Producers’ Guild to compile a common response to the government’s consultation.

The Music Producers Guild and UK Music member Basca (British Academy of Songwriters, Composers & Authors) had been part of a group condemning proposed laws. That camp also included the Featured Artists Coalition (FAC), including Annie Lennox, Rowntree and Pink Floyd’s Nick Mason. FAC were not part of last night’s joint position statement.

Asked about bringing together all strands of the industry, Sharkey said:

“Conversations will progress over coming weeks and days to ensure the industry can go out there with a clear vision on how we want government to help us going forward.”

A clear view of the future

The UK Music statement stopped short of providing details on whether the coalition of groups supports the proposals to suspend the broadband connections as a last resort.

“We are very much settled now on what we think will be our common response on September 29,” said Sharkey.

Asked about the broadband suspension issue, he said: “UK Music have agreed a position on it and will reveal it on the 29th.”

“We are affirming to the industry and to the outside world that we do have a clear view of our future and how we achieve that.”

Some industry groups have openly criticised the big-name artists for their very public comments that filesharing can be beneficial to musicians. But Sharkey rebuffed suggestions of a growing rift in the UK music industry.

He said the debate around what measures were needed to curb filesharing had been a “very productive exercise” and claimed it had in fact brought various parties closer together.

“It’s important that we all know we have a future and it can be very successful, should we as an industry decide to make it so,” he said.

The position statement says tackling the issue of unlicensed peer-to-peer file-sharing is critical to the future of the music industry and to “enabling a commercial environment where sustainable, licensed digital services can prosper.”

“UK Music would like to clarify that all our members remain committed to supporting proposals that will benefit the future growth and sustainability of our commercial music industry,” it says.

“In context of an evolving licensed digital music market, we believe that government intervention is extremely welcome and that, subject to assessment, Ofcom should be granted appropriate and proportionate powers as directed by the secretary of state.”

“The purpose of these powers is to encourage users of unlicensed P2P networks towards existing and future digital music services.”

The statement follows a motion yesterday from the National Union of Journalists and broadcasting union Bectu, fully backed at the TUC conference, condemning filesharing and demanding more action from internet service providers (ISPs).

Many ISPs have expressed concerns over how proposed laws will be enforced and how this will be funded. They say they are also worried that the wrong people could be penalised, while consumer groups warn the planned laws could infringe the rights of internet users.

- By Katie Allen | Guardian.co.uk

]]> 4160 2009-09-28 17:32:46 2009-09-29 00:32:46 open open music-business-presents-united-front-on-filesharing publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2494#comments wfw:commentRSS http://zikkir.com/business/2494/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2494 syndication_item_hash f033b186a83c7c63df165346bae39b45 Market forces breaking news: Next racks up £185m profits despite the downturn http://www.ethiopianreview.com/business/4158 Tue, 29 Sep 2009 00:32:46 +0000 http://zikkir.com/business/?p=2518 It’s a recession not Armageddon, points out CEO Simon Wolfson

This morning’s half-year results from Next have provided more evidence that the downturn hasn’t been quite as severe as some have feared.

The high street, online and catalogue chain posted pre-tax profits of £185.5m for the six months to the end of July, up nearly 7% on last year and ahead of City forecasts.

Next said the increase was partly thanks to good weather, which it doesn’t expect to see over the next six months.

Chief executive Simon Wolfson also warned that 2010 will be tough – the prospect of public spending cuts and tax rises means like-for-like sales will probably fall next year. But he still struck an upbeat tone:

The consumer recession has been less extreme than many forecasters were predicting. Some assumed that a cataclysm in the financial markets would lead to a similar crisis in consumer markets – this has not been the case. It’s been a recession not Armageddon.

In other City news this morning, banknote maker De La Rue said that trading remains in line with expectations, but has taken a £2.5m hit to cover a “legacy overseas tax issue”.

And Weir, the engineering firm, has appointed a new chief executive as Mark Selway has taken a new job in Australia. Congratulations to Keith Cochrane, who has been promoted from his current role as finance director.

- Guardian.co.uk

]]> 4158 2009-09-28 17:32:46 2009-09-29 00:32:46 open open market-forces-breaking-news-next-racks-up-185m-profits-despite-the-downturn publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2518#comments wfw:commentRSS http://zikkir.com/business/2518/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2518 syndication_item_hash 40a272c53beb889b737db1ec997079de Japan Airlines faces multiple job losses and suspended routes http://www.ethiopianreview.com/business/4159 Tue, 29 Sep 2009 00:32:46 +0000 http://zikkir.com/business/?p=2507 • Airline announces £665m loss and 6,800 redundancies
• Tie-up talks include Delta and American Airlines

Japan Airlines (JAL) is to cut thousands of jobs and suspend dozens of domestic and international routes as the carrier battles mounting losses that have made it a target for rival tie-up bids from overseas carriers.

Asia’s biggest airline said it would suspend 29 domestic routes and 21 routes by March 2011 in a rescue plan submitted this week to the transport ministry.

JAL is expected to withdraw from several international airports, including those in Mexico and China, and to suspend routes from Tokyo and Osaka to nine overseas destinations, including Rome, São Paolo in Brazil and Dalian in China, reports said.

The 6,800 redundancies – 14% of JAL’s workforce – will be implemented through to March 2012 as the company strives to cut operating costs by 30% over the next three years.

“The personnel reduction cannot wait,” JAL’s president, Haruka Nishimatsu, told reporters. “The world is changing, and we have to adjust our size. It’s easy to expand, but it’s extremely difficult to downsize.”

The firm is seeking a tie-up by mid-October with either Delta Airlines or American Airlines after suffering its biggest-ever quarterly loss of ¥99bn (£665m) in the three months to June. JAL has forecast losses of ¥63bn through to the end of March 2010.

The Japanese airline, which is facing tough competition on domestic routes from All Nippon Airways, is also in talks with Air France-KLM and Korean Air over additional investments worth several hundred million dollars.

JAL is under mounting pressure to carry out radical restructuring measures after securing a ¥100bn in government funds, and hopes to cut costs by ¥53bn this year and another ¥100bn next year.

A capital tie-up with Delta or American could herald a dramatic reshaping of the global aviation industry, as it would give either one access to JAL’s Chinese and other Asian routes through code-sharing agreements.

Delta, the world’s biggest airline, is keen to add to its trans-Pacific and Asian routes. The Nikkei business paper reported that Delta had offered to invest up to ¥50bn, giving it an 11.2% stake in JAL. Japanese law permits foreign firms to own up to a third of a Japanese airline.

But a Delta victory in the bidding war would be a serious setback to American’s attempts to establish a hub in Asia because it would mean losing code-sharing agreements as part of its Oneworld alliance agreement with JAL.

JAL’s exit from the Oneworld alliance would also deal a blow other group members, including British Airways, analysts said.

JAL executives are thought to favour a tie-up with American, while the Japanese government is said to prefer the more financially robust Delta or Air France-KLM. Nishimatsu would only say his firm was likely to opt for one of the US bidders “if an open skies agreement looks likely”.

A flexible arrangement would give the successful bidder access to Haneda, the world’s third-busiest airport by passenger numbers. Haneda and Narita, Tokyo’s international hub, are both expanding.

“If you just look at what the companies can offer, then Delta would make more sense as an ally because they have more services between Japan and North America,” Osuke Itazaki, an analyst at Credit Suisse, told Reuters.

News of the talks comes amid more bad news for the global airline industry. Rising oil prices, faltering demand and intense competition will see it post a loss $27.8bn (£16.9bn) for 2008 and 2009, the International Air Transport Association said yesterday.

- By Justin McCurry | Guardian.co.uk

]]> 4159 2009-09-28 17:32:46 2009-09-29 00:32:46 open open japan-airlines-faces-multiple-job-losses-and-suspended-routes publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2507#comments wfw:commentRSS http://zikkir.com/business/2507/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2507 syndication_item_hash 875f6c5bfb562d89108a6ea3df09563a Next tells City to raise forecasts after smart first half http://www.ethiopianreview.com/business/4157 Tue, 29 Sep 2009 00:33:38 +0000 http://zikkir.com/business/?p=2463 Next told the City to go back and upgrade its profit forecasts for 2009 today after a “better-than-expected first half” — even though it predicts no improvement in High Street sales in the second half.

Chief executive Simon Wolfson said that there had been a “slight improvement in the consumer environment, and favourable weather” in the six months to the end of July.

Next had also beaten its competitors, he said, by switching to a riskier but more profitable strategy in terms of the scale to which it translates catwalk fashion trends — like this year’s cowl neck — quickly into cheaper versions in its stores.

Wolfson said that he had been right at the start of the year to predict that the consumer recession would not be as bad as some doomsters had warned.

He said: “Some assumed that a ­cataclysm in the financial markets would lead to a similar crisis in ­consumer markets. That was not the case.”

But similarly he is not following some commentators in predicting a swift recovery.

He said: “Most people, who kept their jobs, were relatively ­insulated from the financial crisis.
“But it is sensible to plan for 2010 on a more conservative basis. We are now looking at a longer period of recovery with grey skies ahead.”

First-half sales, on a same store basis, fell by 1.2% on the High Street, but rose by 1.7% over the internet and through catalogues.

Adding in new shops and ­international sales, Group sales were little changed at £1.51 billion. Pre-tax ­profits came in at the top end of City forecasts, up by 6.9% at £185.5 million.
The first-half dividend goes up 1p, to 19p a share.

Analysts had been forecasting profits of around £400 million for the full-year, but Next said this would now be closer to last year’s total of £429 million. Next shares rose 38p to 1736p.

Wolfson said that despite the general view of a lousy summer, the weather in the last two weeks of May, the whole of June and the start of July — which is when most people replenish their ­summer wardrobe — had actually been better than usual, which added between 2% and 3% to first-half sales.

Similarly, the seasonal sale had been better than the previous year, with 19% less stock having to be marked down. But the coming New Year sale will be tougher, because Christmas Day falls on a Friday. Next traditionally opens its stores at 5am on 27 December for the sales, but this year it will shift that opening to Boxing Day.

Wolfson said: “We could not possibly cope with the kind of crowds that turn out for our sale if we began it on a ­Sunday, when you cannot open until 11am and can only stay open for six hours.”

That means Next will have to pay its staff more, and risks seeing lower ­overall clearance during the sale, if fewer punters turn out.

Assuming no great weather boost in the second half, Next expects second-half like-for-like High Street sales down between 3.5% and 6% and Directory sales between flat and up 2%.

- By Nick Goodway | Evening Standard

]]> 4157 2009-09-28 17:33:38 2009-09-29 00:33:38 open open next-tells-city-to-raise-forecasts-after-smart-first-half publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2463#comments wfw:commentRSS http://zikkir.com/business/2463/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2463 syndication_item_hash b7071660227710bb406972d1b253d876 Toyota promises cleaner, cheaper ‘plug-in’ Prius hybrid http://www.ethiopianreview.com/business/4155 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2398 Frankfurt motor show 2009: price, battery-life and ‘range anxiety’ all fuel uncertainty in the electric car sector

Toyota today promised to slash carbon emissions from its new Prius hybrid model by more than a third, laying down the gauntlet to its rivals to make a greener – and more affordable – car.Speaking at the Frankfurt motor show, executives from the Japanese car maker also dismissed new “pure electric” models being developed by European competitors Peugeot and Renault/ Nissan as too expensive and impractical.

This year’s motor show – the largest industry event in the world – has been dominated by the electric car as executives are forced by environmental pressures to find an alternative to the traditional combustion engine model.

Toyota is launching a new “plug-in” version for its hugely successful hybrid Prius model, which combines a combustion engine with an electric motor to reduce its emissions. The plug-in version – due to be trialled in the UK next year – will reduce emissions from the Prius’s current 89g of carbon dioxide per kilometre to 60g or less. This version allows owners to charge up the car’s battery at home and to run the car on electric battery alone for short distances.

Like its Japanese rival Honda, Toyota is sceptical about the appeal of “pure electric vehicles (EVs)”, which are powered solely by electric batteries. These are potentially much more expensive than hybrid models and have a shorter range.

Graham Smith, senior vice president for Toyota Motor Europe, said: “We see a fairly challenging road ahead for the electric vehicle. Up to now, motorists have had only one task all their lives – find a station and fill up with gas. For EVs, people have to get their heads round charging their car for several hours a night – do they even have a plug outside their house?”

Peugeot is developing its own hybrid model but admits it faces a big challenge in taking on Toyota, which dominates the market. Chief executive Philippe Varin argues that all the technologies being developed, including EVs, have their own risks. “There are a lot of uncertainties. We don’t want to put all our eggs in one basket. It depends on a lot of things – how the battery technology develops, how consumers react, and price.”

Opel/Vauxhall has seized on what it believes to be a gap in the market. It believes motorists have “range anxiety” about electric cars, fearing that the juice will run out and leave them stranded on a dark country lane. Its Ampera is charged in the normal way but has a petrol engine that kicks in when its maximum range of 40 miles on its electric battery is exceeded.

- By Tim Webb | Guardian.co.uk

]]> 4155 2009-09-28 17:33:39 2009-09-29 00:33:39 open open toyota-promises-cleaner-cheaper-%e2%80%98plug-in%e2%80%99-prius-hybrid publish 0 0 post syndication_item_hash 2ca3879544609e2f28a299d429006b2d syndication_permalink http://zikkir.com/business/2398 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2398/feed rss:comments http://zikkir.com/business/2398#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Barclays accused of securing ’secret’ windfall in Lehman deal http://www.ethiopianreview.com/business/4156 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2350 The rump of the defunct Wall Street bank Lehman Brothers has accused Barclays of milking its collapse to the tune of $8.2bn by securing a “secret” windfall on the purchase of its US operations from bankruptcy.

On the first anniversary of Lehman Brothers’ demise, lawyers for the bank’s estate filed an application at a Manhattan bankruptcy court seeking a refund of billions of dollars from Barclays.

The legal filing alleges that Barclays’ purchase of Lehman’s investment banking business was based on an “undisclosed distortion” of the Wall Street firm’s securities and that some of those who negotiated the deal had an interest in securing jobs at Barclays.

“The deal was actually structured to give Barclays an immediate and enormous profit windfall,” says Lehman. “Certain Lehman executives agreed to give Barclays an undisclosed $5bn discount off the book value of securities transferred to Barclays, and later agreed to give billions more in so-called ‘added value’ that Barclays demanded.”

The dispute reopens a long-running battle over the fairness of a deal agreed just days after Lehman’s spectacular collapse last year.

Many of the details of Lehman’s claim have been redacted by the court. But in a particularly pointed passage, the document suggests that executives who struck the deal may have been influenced by job security: “Many of the Lehman decision-makers who ‘negotiated’ the transaction with Barclays had at the same time been offered lucrative Barclays employment contracts conditioned on the closing of the sale transaction.”

The involvement of Barclays in the final days of Lehman has been a subject of deep controversy. Lehman had hoped that a takeover by the London-based bank might save it from bankruptcy. But in the event, British regulators were reluctant to allow Barclays to buy Lehman without a US government backstop on losses, which was not forthcoming.

So Lehman was allowed to collapse and Barclays then picked up certain assets for about $1.75bn – a deal which the bank’s executives have admitted was a good one. Barclays’ 2008 financial results show an exceptional gain of £2.26bn from the purchase of Lehman’s US business.

A Barclays spokesman rejected Lehman’s complaint: “Now that the economy has begun to stabilise, the Lehman estate is trying to re-trade the deal on the basis of a meritless argument.”

A judge is due to hear arguments from the two sides in October.

Barclays Bank and Lloyds are the most complained-about financial services companies in Britain according to figures from the Financial Ombudsman Service for the first six months of the year.

- By Andrew Clark | Guardian.co.uk

]]> 4156 2009-09-28 17:33:39 2009-09-29 00:33:39 open open barclays-accused-of-securing-%e2%80%99secret%e2%80%99-windfall-in-lehman-deal publish 0 0 post syndication_source_uri http://zikkir.com/business syndication_source zikkir rss:comments http://zikkir.com/business/2350#comments wfw:commentRSS http://zikkir.com/business/2350/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2350 syndication_item_hash 6fb4d25fdb5caf78445d00e8cd3bbcdb How I helped rescue Britain from brink of bank disaster http://www.ethiopianreview.com/business/4149 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2421 The minister who brokered the rescue packages that saved Britain’s financial system from collapse last autumn today spoke of the “unimaginable” chaos that would have followed if they had failed.

On the first anniversary of the fall of Lehman Brothers – triggering the world’s gravest financial crisis since the 1929 Crash – former City banker Shriti Vadera, who works with Lord Mandelson and the Cabinet office, has described for the first time how the Government wrestled to keep the banks afloat.

In an exclusive interview with the Standard she said one of the major high street banks was “very close to collapse” in the days after Lehman went down.

In the weeks that followed Baroness Vadera and senior officials helped put together a series of unprecedented rescue packages, including the £37billion partial nationalisation of Lloyds Banking Group.

The minister, one of Gordon Brown’s closest confidantes, said that if the deals had not been agreed Britons faced waking up to a world where they could not get money from cashpoints and thousands of businesses would have been forced to shut their doors.

This is the full interview:

When were you first aware of the seriousness of Lehman’s position and of the catastrophic consequences of the bank’s collapse?

The market, especially in New York, had been speculating about problems at Lehman for a few months but the situation really became critical during that last week and it was clearly the weekend that was decisive.

When talks with the US government failed and we heard of the collapse, the scale was clear but it was hard to imagine all the consequences and how they would play out — it was just so unprecedented. We had to operate on the basis of expecting the worst. But even then the interconnectedness of Lehman positions all over the world was unclear. I remember there were protests somewhere in the Far East when the implications became clear to some savers.

How close do you feel that the entire British financial system came to collapse?

It wasn’t the UK banks but the world’s banking system that was threatened. We’d been thinking the UK banks needed equity to declare their losses and had been working through how that could happen. But after Lehman, the situation became unpredictable — it felt like anything could happen quite suddenly.

A couple of the banks in particular were finding it hard to fund themselves even for very short terms. Thankfully we’d already started thinking about bank recapitalisation, because when it came to it, I think it was in time. One of the banks was close to collapse and in that environment, if one goes the contagion can spread rapidly.

What would have been the short and longer term consequences of that collapse — if for example a major British bank had gone under?

Dire. Unimaginable. At worst: people’s savings at risk, we wouldn’t have been able to use cash points, businesses wouldn’t have been able to get credit and stay open. Banks oil the machinery of the economy.

In 1933 the US had to close everything down and tell people to stay at home over a few days while they tried to sort it out. But I think it’s the long-term consequences that would have been even more dangerous.

To restructure the banks after that, and rebuild confidence in them and in the economy, would have taken years and years and cost multiples more. The impact on jobs would have been catastrophic. So we weren’t saving the banks as much as saving the economy from the banks. And it seems hard to imagine now, just 12 months ago it felt like we were staring into the abyss.

Was there a pivotal moment when you felt that “armageddon” had been averted?

No, there wasn’t, really. When your muscles have tensed up for a long time they aren’t going to relax immediately. We couldn’t really let up and I remember still watching those indicators constantly for months afterward and I still look at them every day. In retrospect I think the announcement of the recapitalisation and funding plan and the details a few days later for RBS, Lloyds and HBOS were a turning point, and the Europeans and US taking action following us was another turning point.

But the Treasury still had people working weekend after weekend. We have to remain constantly vigilant.

Were there times when you felt that events were running out of the Government’s control? When was the most dangerous time?

Lehman was the shock that set off events that it seemed no one could control. But we knew what the right thing to do was. And we got there in time. But it felt isolated that no one else was prepared to do it and at that time it was a real worry.

The morning of 8 October, when the Prime Minister and Chancellor announced we would underwrite £50 billion and take shares in the banks, I wasn’t sure how the banks, the markets, depositors, other governments were going to react.

It now seems so obvious and right to do what we did but it was really not obvious then. If it had been that obvious why had no one done it?

Those were extraordinary times without recent historical precedent. What was the mood of the meetings in which these key decisions had to be taken under the most intense pressure?

Focus, focus, focus. Driven to deliver the results the Prime Minister was demanding. The team spirit was great, you find camaraderie when it’s 2am and everyone is giving it their all. And occasional black humour to ease the tension. And when it came to making the decisions with the Prime Minister and Chancellor, it was calm, focused, they questioned us to ensure we had covered all the angles. There wasn’t really the time to be distracted.

Could it happen again?

The job we are now doing, the next phase, is to make sure it can never happen again. The Treasury has already implemented changes like the Banking Act and, with the FSA and Bank of England, is reforming our regulatory system totally.

We are proposing higher capital requirements for riskier activities and riskier banks, liquidity requirements, leverage ratios, changes to bonuses and remuneration and frankly we need bankers and boards who actually understand the risks they are taking.

The lessons have to be learned. People need to feel their banks are safe without government guarantees. There is no going back to business the way it was.”

- By Jonathan Prynn | Evening Standard

]]> 4149 2009-09-28 17:33:39 2009-09-29 00:33:39 open open how-i-helped-rescue-britain-from-brink-of-bank-disaster publish 0 0 post syndication_item_hash 9b1cae7c4f71c65cc4912fff96d1c547 syndication_permalink http://zikkir.com/business/2421 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2421#comments wfw:commentRSS http://zikkir.com/business/2421/feed syndication_feed http://www.zikkir.com/business/feed LSE takes IT in-house http://www.ethiopianreview.com/business/4143 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2460 Xavier Rolet today stamped his authority as new chief executive of the London Stock Exchange with an £18 million deal to bring the market’s key trading technology back in-house.

The deal to buy MillenniumIT of Sri Lanka for $30 million reverses a long-running trend by the Exchange and his predecessor Dame Clara Furse of cutting costs by outsourcing IT needs. It will come as a blow to Accenture, which handled much of that outsourcing for years, although Cisco and Microsoft have also done big projects for the Exchange.

The deal also sounds the death knell for current LSE trading system TradElect, which got a £40 million upgrade two years ago and will now be replaced by the Sri Lankans’ system from the end of next year.

But in a period where the LSE is facing increasing competition from rival trading systems such as Chi-X and Turquoise, Rolet decided it had to have in-house technology that it owned. He said it would not only make the LSE more agile and innovative but also provide it with a faster, bigger share-trading platform.

MillenniumIT was set up by Sri Lankan entrepreneur Tony Weerasinghe in 1996 and counts the London Metal Exchange and Michael Spencer’s interdealer broker Icap among its clients. Rolet wants MillenniumIT to continue acting as outsourcing consultants to other financial firms and markets. He said: “It is a proven business, already serving multiple clients in multiple geographies, including some of the best-known in their fields. The potential from this transaction is considerable for both parties.”

The LSE expects the deal to save it at least £10 million a year in IT development and operational costs from 2011-12.

- Evening Standard

]]> 4143 2009-09-28 17:33:39 2009-09-29 00:33:39 open open lse-takes-it-in-house publish 0 0 post syndication_item_hash b99ea8b83f2a3fd36429d5c1e0395282 syndication_permalink http://zikkir.com/business/2460 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2460/feed rss:comments http://zikkir.com/business/2460#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Zara owner feels pain of recession http://www.ethiopianreview.com/business/4144 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2457 The owner of fashion chain Zara today reported sliding sales and falling profits as it felt the pain of the recession in the retail market.

Inditex – Europe’s largest clothing retailer, which also owns fashion chain Massimo Dutti – also said Zara will go online during the Autumn-Winter 2010 season for the first time.

It said reported same-store sales fell 2% in the six months to the end of July this year.

Profits were down 3% from €822 million (£723 million) in the first half of last year to €799 million for the same period this year – although this was better than the €780 million expected by analysts. Shares in the company rose 3% on the figures.

“Tight cost control is key to these better-than-forecast figures,” said Credit Suisse analyst Tony Shiret. “The second quarter is the first in two years where costs have grown slower than sales. This is a major turnaround.”

The Spanish retailer has been hit hard in its home country where the recession has sent unemployment soaring more than in the UK.

It said total sales at its 4430 stores, which it has in 73 countries, were up 9% since the start of August.

- Evening Standard

]]> 4144 2009-09-28 17:33:39 2009-09-29 00:33:39 open open zara-owner-feels-pain-of-recession publish 0 0 post syndication_item_hash e785c26681273c2f9a545e612fa60d52 syndication_permalink http://zikkir.com/business/2457 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2457/feed rss:comments http://zikkir.com/business/2457#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Europe warns Lloyds on Halifax http://www.ethiopianreview.com/business/4145 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2454 Pressure was mounting on Lloyds Banking Group chief executive Eric Daniels today, as regulators in Brussels consider forcing the part-nationalised bank to offload mortgage lender Halifax.

The European Commission has warned Lloyds, 43%-owned by the taxpayer, that it may have to get rid of Halifax in return for receiving billions of pounds of state aid.

Such a move would be a disaster for Daniels and could trigger his departure from the bank.

It would also be an embarrassment for Gordon Brown who helped stitch together the Lloyds rescue of stricken rival HBOS, the owner of Halifax and Bank of Scotland.

The deal, which gave the combined bank a third of the mortgage and current account markets in the UK, has already cost Lloyds chairman Sir Victor Blank his job. Sir Win Bischoff took over yesterday

Competition Commissioner Neelie Kroes has yet to make a final decision but it is understood this will include draconian penalties on Lloyds.

A source close to the negotiations said: “The Commission has not made a final decision but what they are talking about sounds a lot like Lloyds giving up Halifax.”

The Commission is looking at the £17 billion Lloyds received from the Government when it rescued HBOS last year. It is also considering Lloyds’ decision to insure £260 billion of toxic assets in the Government Asset Protection Scheme (APS).

If Brussels rules that state aid gives Lloyds an unfair advantage over its rivals, it can force the bank to sell assets.

Lloyds is now pondering whether to scale down its involvement in the APS and raise money in a rights issue instead to reduce its dependency on the state.

Analysts also point out that Lloyds was the first bank in Europe to pay back any state aid.

Lloyds hoped it could satisfy the Commission by selling Cheltenham & Gloucester and making disposals in Scotland, but Kroes is understood to have rejected such a deal.

Lloyds declined to comment but is known to be desperate to save Halifax, the “good bank” inherited from HBOS to Bank of Scotland’s “bad bank”.

Brussels forced German bank Commerzbank to shed 45% of its balance sheet in return for �18 billion (£16 billion) in state aid, and yesterday warned warned that the Dutch deal to bail out ING may have been too generous.

- By Hugo Duncan | Evening Standard

]]> 4145 2009-09-28 17:33:39 2009-09-29 00:33:39 open open europe-warns-lloyds-on-halifax publish 0 0 post syndication_item_hash 2d8185289c35461c90e75647b9fc3f2d syndication_permalink http://zikkir.com/business/2454 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2454/feed rss:comments http://zikkir.com/business/2454#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Investors seeks curbs on executive pay advisers http://www.ethiopianreview.com/business/4146 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2451 Five remuneration consultancies dominate structuring of FTSE 100 boardroom pay deals, Guardian survey finds

Leading City investors are calling for consultants who advise big firms on their pay deals to disclose their fees, in an effort to shed more light on this little-understood industry. A handful of pay consultants are influential in setting rewards for directors with their advice to remuneration committees and investors fear they are partly responsible for runaway pay inflation.

Major investors are lobbying for changes to the combined code of corporate governance – with which companies must comply – to require publication of charges levied by the consultancies that dominate the arena of executive pay.

The Guardian’s survey of executive pay shows that five firms influence how top executives’ remuneration is structured. Hewitt New Bridge Street advises more than 30 firms in the FTSE 100; Towers Perrin is named more than 25 times. Deloitte receives almost 25 mentions, while Kepler Associates and PricewaterhouseCoopers are cited about 15 times each.

These advisers are hired by the remuneration committee – a sub-committee of the main board – to advise on pay, pensions and other benefits. Fund managers believe firms should make it clear that the consultants are working for the committee that sets executive pay, rather than the directors themselves, to head off concerns about conflicts of interest.

Pay consultants are often blamed for forcing up executives’ rewards by providing benchmarks against which rivals’ pay can be measured. Peter Montagnon, head of investments at the Association of British Insurers, said: “There is a lot of frustration with the role of remuneration consultants. They have made a very important contribution to the upward ratchet in executive remuneration.”

The Guardian’s pay survey showed that board directors enjoyed a 10% rise in their basic salaries in 2008 despite the worst year on record for the FTSE 100.

David Tankel, principal of Hewitt New Bridge Street Consultants, was adamant that pay experts could not be blamed for higher rewards. “In nearly every case, we were appointed by the remuneration committee. And why would it be in our financial interests to shove up [pay]?”

Pay consultants insist that this year 70% of FTSE 100 firms froze pay for top directors and that this would be reflected in next year’s Guardian survey. Nicki Demby, of Towers Perrin’s executive compensation practice, said: “In 2009, there has been a completely different picture.”

The consultants have agreed a code of conduct to head off concerns about conflicts of interest where they provide additional expertise as well as advising on pay. Their code was attached to Sir David Walker’s review of banking ethics, although some fund managers do not think it goes far enough. Walker is thought to be ready to heed calls from the ABI for a tougher code as well as to adopt its demand that advisers’ fees are published.

The ABI argues that remuneration committees should be treated in the same way as audit committees, which are required to publish their relationship with auditors and disclose the fees paid for auditing.

The ABI is also urging a tougher stance on consultants to be included in the combined code, which is being reviewed by the Financial Reporting Council.

Institutional investors also want to make the heads of remuneration committees more accountable and believe they should stand for election to the board each year. Some have already felt the heat this year: last week, Peter Job resigned as chairman of the remuneration committee of the oil company Shell after a shareholder revolt over pay and Louise Pattern was replaced as head of the remuneration committee at Marks & Spencer, where pay deals have also annoyed shareholders.

- By Jill Treanor | Guardian.co.uk

]]> 4146 2009-09-28 17:33:39 2009-09-29 00:33:39 open open investors-seeks-curbs-on-executive-pay-advisers publish 0 0 post syndication_item_hash 24a2357611508912b1a75f60a45716d8 syndication_permalink http://zikkir.com/business/2451 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2451/feed rss:comments http://zikkir.com/business/2451#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Rail firms ‘picking pockets’ with 50% rise in car park charges http://www.ethiopianreview.com/business/4147 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2440 Rail bosses were condemned today for raising station car parking charges by up to 50 per cent to offset January’s small cut in rail fares.

They were accused of “picking the pockets” of captive passengers who have nowhere else to park.

Virgin Trains was highlighted by the TSSA, the rail industry’s second largest union, as leading the way with increases of between 25 per cent and 50 per cent at stations along the West Coast Main Line between Euston and Glasgow.

Annual parking charges have shot up from £655 to £980, a 50 per cent increase.

Virgin said the rises were justified and that tens of millions of pounds have been spent increasing the number of spaces with better lighting and CCTV to improve security.

First Great Western, which runs services from the west into Paddington, is increasing station parking charges by up to 30 per cent. An annual parking ticket at Reading is going up from £1,265 to £1,644.

Other train operators are also planning increases.

Gerry Doherty, TSSA general secretary, launched the attack on the rail companies the day before the transport debate at the TUC in Liverpool. He said: “It is outrageous that passengers have to pay huge increases in car parking fees just so the rail companies can offset the tiny 0.4 per cent cut in regulated fares that they will be forced to make in January.

“Passengers are paying now for the tiny benefit they will get in the new year. This is in effect a back door fares increase which is not covered by the regulated fares formula.

“The rail companies are picking the pockets of millions of passengers.”

A TSSA survey in May revealed that the private rail companies make more than £100 million a year from car parking charges.

- By Dick Murray | Evening Standard

]]> 4147 2009-09-28 17:33:39 2009-09-29 00:33:39 open open rail-firms-%e2%80%98picking-pockets%e2%80%99-with-50-rise-in-car-park-charges publish 0 0 post syndication_permalink http://zikkir.com/business/2440 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2440/feed rss:comments http://zikkir.com/business/2440#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash 6d08cfe9bd8a67c29bfb39f2f84b5b32 Big banks account for half of complaints http://www.ethiopianreview.com/business/4148 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2431 Five banks accounted for more than half of all the complaints the Financial Ombudsman Service received during the first half of the year, figures showed today.

Lloyds Banking Group, Barclays Group, The Royal Bank of Scotland Group, Abbey National and HSBC Group all received more than 3,000 complaints each during the six months to the end of June, accounting for a total of 38,286 cases, the ombudsman said.

The high level of complaints against banks is likely to have been driven by people complaining about controversial payment protection insurance, which is sold alongside credit agreements, and which accounts for around one in every four complaints made to the service.

The ombudsman has also previously reported receiving a high level of complaints about credit cards and current accounts.

Overall, the Financial Ombudsman Service, which handles disputes between consumers and financial services firms, received a total of 69,841 new complaints during the six months to the end of June.

Preferred Mortgages Ltd received the fewest at just 31, while Barclays Bank Plc had the most at 8,283.

Around 87% of complaints related to 142 financial services firms, out of a total of more than 100,000 businesses covered by the service.

The figures also showed that while the ombudsman upheld 59% of all complaints it dealt with in favour of consumers, the rate ranged from 11% for Zurich Advice Network Ltd to 95% for Black Horse Ltd.

Across the 142 firms which accounted for the bulk of the complaints, the ombudsman upheld 70% of complaints about general insurance products, 61% relating to banking and 41% about mortgages.

Today is the first time that the ombudsman has published details on how many complaints have been made against specific companies.

It is part of a move to increase transparency about the way individual firms handle complaints, while it is also hoped that the publication of the data will encourage the worst firms to improve their complaints handling procedures.

The number of complaints made against individual firms is likely to be affected by the amount of business they do.

But the ombudsman said the experts it had consulted had so far failed to agree on how this should be taken into account, so the size of individual firms is not taken into account in the figures.

Sir Christopher Kelly, chairman of the Financial Ombudsman Service, said: “The board of the Financial Ombudsman Service welcomes the publication of this detailed information, as part of our work to help financial businesses improve their complaints handling – and to reduce the number of unresolved disputes that have to be referred to the ombudsman service.

“I will now be writing to the chairmen of the financial businesses that generate the largest proportion of our complaints workload, to ask them to consider very carefully both their own complaints performance – as reflected in the data we are publishing today – and the complaints performance of their competitors.”

- By Evening Standard

]]> 4148 2009-09-28 17:33:39 2009-09-29 00:33:39 open open big-banks-account-for-half-of-complaints publish 0 0 post syndication_permalink http://zikkir.com/business/2431 syndication_item_hash 7ada089297bd93d38f3dcb854466ad42 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2431/feed syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2431#comments syndication_source zikkir UK recession is over, says Bank as FTSE edges upward http://www.ethiopianreview.com/business/4154 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2407 The Bank of England today declared the UK recession over a year to the day after the collapse of Lehman Brothers sent the global economy into freefall.

Governor Mervyn King said: “Following a precipitate fall in economic activity at the end of last year and the start of this, there are now signs that growth has resumed in the third quarter.”

But he warned the “strength and sustainability of the recovery is highly uncertain”.

The FTSE 100 was 38.82 points higher at 5057.67, having having rallied from a post-Lehman low of 3512 which it slumped to in March.

It is still below the 5416 it closed at the session before Lehman went under.

King told MPs on the Treasury Select Committee: “The consequences of the financial crisis, sparked by the failure of Lehman Brothers exactly a year ago today, will be pervasive and long-lasting. That is not to say that growth cannot resume. In some countries it already has, and in others it will. But there is a long, hard road ahead.”

The UK was already in recession when Lehman went bankrupt on 15 September 2008, but the pace of decline accelerated dramatically as the world was gripped by the worst financial crisis since the 1920s.

France, Germany and Japan have since emerged from recession but the UK is languishing behind.
King warned any recovery will be “slow and protracted”.

He said: “Most financial institutions around the world are focused on recuperation, giving them a powerful incentive to be cautious about extending new credit to households and businesses. That is acting as a direct drag on demand. But the crisis has also caused households and companies around the world to want to strengthen their own financial positions and that has acted as a further brake on spending. Those factors will be important influences on the UK economy for the foreseeable future. Nevertheless, the decline in activity has moderated and growth seems set to resume.”

His comments came amid warnings that the lessons of Lehman have not been learned — as illustrated by the return of big bonuses — and serious reform of the financial system is needed.

Tony Dolphin, senior economist at the Institute for Public Policy Research, said: “Alarm bells should be ringing with the early signs of a back-to-business attitude in the City and little evidence that policy makers are taking measures to ensure the next economic recovery is better balanced than the last one.”

The mood in London and New York today was in stark contrast to a year ago when the FTSE 100 1index crashed more than 200 points or nearly 4% on the day of Lehman’s downfall.

Volatility warning from Mervyn King

Mervyn King today warned the path of inflation will be “volatile” after it fell less than expected again last month.

The Consumer Prices Index fell from 1.8% in July to 1.6% in August – its lowest since January 2005 but above the 1.4% forecast in the City.

King, Governor of the Bank of England, predicted six months of volatility with inflation initially falling further below the 2% target before rising temporarily when last year’s emergency VAT cut is reversed.

Further out, he forecast inflation to drop back below 2%, suggesting yet more money will be printed by the Bank under its quantitative easing programme.

Vicky Redwood of Capital Economics said: “The big picture is still that inflation is set to fall to very low levels next year and beyond.”

- By Hugo Duncan | Evening Standard

]]> 4154 2009-09-28 17:33:39 2009-09-29 00:33:39 open open uk-recession-is-over-says-bank-as-ftse-edges-upward publish 0 0 post syndication_item_hash 3b65179c53e0b61f2b5bbce2a8ba5796 syndication_permalink http://zikkir.com/business/2407 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2407/feed rss:comments http://zikkir.com/business/2407#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Soggy summer puts a shine on Dunelm sales http://www.ethiopianreview.com/business/4153 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2410 Dunelm proved there was life on Planet Retail this summer as the discount haberdasher and homewares group reported a stunning 16% rise in like-for-like sales over the summer.

The group, which sells cut-price furnishings and kitchenware from 85 out-of-town stores and 12 High Street shops, said cash-strapped Brits have been flocking through its doors.

“Like-for-like sales growth have been up in double digits since the spring and have risen 16% in the 10 weeks to last weekend,” said chief executive Will Adderley.

“We have been helped by the change in the competitive landscape with the loss of Rosebys and Woolworths and several independents.

“We are also weather dependent and a miserable summer works in our favour.”

Dunelm’s average transaction come in at less than £30. In its financial year to the end of July, it reported pre-tax profits of £53 million against £49 million last time with a 9% lift in the dividend to 6p.

While its shares today soared 39¼p to a new high of 317p, Adderley warned: “We have been up against very weak comparatives, we are very nervous about the economic and political uncertainty going into next year and next year’s World Cup will not do us any favours.”

- Evening Standard

]]> 4153 2009-09-28 17:33:39 2009-09-29 00:33:39 open open soggy-summer-puts-a-shine-on-dunelm-sales publish 0 0 post syndication_permalink http://zikkir.com/business/2410 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2410/feed rss:comments http://zikkir.com/business/2410#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash 4d46b3369b55c5a380b5fe3e3b2e4a7d BAE cuts jobs and turns to US as aircraft business slows http://www.ethiopianreview.com/business/4152 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2413 Arms giant BAE Systems is to slash 1116 British workers, just five months after it axed 500 UK defence jobs.

The former British Aerospace, which has made no secret of refocusing its business on the US arms industry, said it is closing the factory that makes the ageing Nimrod maritime patrol plane with the loss of 630 jobs in Cheshire.

A further 486 jobs are going around the UK as BAE admitted work on other aircraft such as the Harrier, the Tornado and the Hawk is slowing.

The cuts come after BAE’s announcement in May – on the day of the Government’s decision to pull out of Basra, southern Iraq – that it was cutting 500 jobs supporting and supplying armaments and trucks to the British Army.

A spokesman for the company said today: “Despite strenuous efforts to achieve further Nimrod production work there has been none forthcoming. It is intended that there will be a phased run-down of the site in line with the production programme.”

BAE said workers have been aware that the Nimrod – in RAF service since the 1960s – was being wound down ahead of a proposed programme closure in 2012.

The other job losses – mainly in the north but including 111 at Farnborough – are related to slowing demand for upgrade work and maintenance on the Tornado fighter, the Harrier Jump Jet and the Hawk aircraft as well as on a contract with Airbus, the European manufacturer in which BAE used to have a stake.

“We have to ensure we are the right size and shape to remain competitive and meet our customers’ requirements in the future,” said Kevin Taylor, BAE’s military air chief.

Lancashire Tory MP Nigel Evans said the Airbus-linked jobs are being lost to overseas locations. “This should send a warning signal to the Government that more work needs to be done to keep manufacturing in the UK,” he said.

- By Robert Lea | Evening Standard

]]> 4152 2009-09-28 17:33:39 2009-09-29 00:33:39 open open bae-cuts-jobs-and-turns-to-us-as-aircraft-business-slows publish 0 0 post wfw:commentRSS http://zikkir.com/business/2413/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2413 syndication_item_hash a680caae6f997a444bab88a9d536cf3c rss:comments http://zikkir.com/business/2413#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir City has the taste for a Cadbury sweetener http://www.ethiopianreview.com/business/4150 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2419 Hopes for a sweeter takeover offer for Cadbury were being chewed over in the City today as the rebuffed shock bid from Kraft fell further behind what investors think the chocolate giant is worth.

Takeover tittle-tattle continued to buoy Cadbury shares as the chief executive of its American stalker vowed to be back with proposals for Cadbury directors.

Kraft chief executive Irene Rosenfeld said at a speaking engagement in Toronto overnight: “In the weeks ahead, we look forward to engaging in constructive dialogue with the board and management of Cadbury.”

There was speculation in New York that Kraft could afford to sweeten its bid, tabled last week, by raising money through the sale of assets including its coffee brand Maxwell House.

What is certain is that Kraft’s original £10 billion cash-and-shares offer has increasingly turned sour.

A fall in Kraft’s own stock price values its offer for Cadbury – about a quarter of one of its shares for one Cadbury share plus 300p in cash – at 716p a share.

A 2½p rise in Cadbury’s stock today to 789p means that the value of Kraft’s offer languishing at a discount of almost 10%.

- By Robert Lea | Evening Standard

]]> 4150 2009-09-28 17:33:39 2009-09-29 00:33:39 open open city-has-the-taste-for-a-cadbury-sweetener publish 0 0 post wfw:commentRSS http://zikkir.com/business/2419/feed syndication_feed http://www.zikkir.com/business/feed rss:comments http://zikkir.com/business/2419#comments syndication_source zikkir syndication_source_uri http://zikkir.com/business syndication_item_hash a49c5998049f41fdb722bbc90bc97117 syndication_permalink http://zikkir.com/business/2419 Ofcom clears BT to offer discount package deals http://www.ethiopianreview.com/business/4151 Tue, 29 Sep 2009 00:33:39 +0000 http://zikkir.com/business/?p=2416 The last major rules controlling how much BT can charge for domestic phone calls were scrapped today – 25 years after the company was privatised.

Regulator Ofcom said BT now faces such effective competition from the likes of Virgin Media, BSkyB and TalkTalk that it will remove the chains which stopped BT offering bundled packages.

This means that shortly, like its rivals, BT will offer discounted packages for people who take more than one of its services such as landline, broadband and digital TV.

Ofcom said the trigger to deregulate BT came as more than 13 million households and small business have now moved to rival providers for phone lines. BT has 20 million such customers.

That competition has forced prices down said Ofcom, with the average monthly landline bill reduced from £25.04 in 2003 to £21.57 last year.

BT chief executive of retail Gavin Patterson said: “This is good news for consumers and businesses as it will allow us to offer more targeted discounts on products and services and more attractive bundles at better prices, something we have been unable to offer widely to date.”

- By Nick Goodway | Evening Standard

]]> 4151 2009-09-28 17:33:39 2009-09-29 00:33:39 open open ofcom-clears-bt-to-offer-discount-package-deals publish 0 0 post syndication_source zikkir syndication_item_hash 02d0e1cb19fa702007b3bcc876d82ae9 syndication_permalink http://zikkir.com/business/2416 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2416/feed rss:comments http://zikkir.com/business/2416#comments syndication_source_uri http://zikkir.com/business Shoppers tire of cutting corners on food http://www.ethiopianreview.com/business/4141 Tue, 29 Sep 2009 00:34:02 +0000 http://zikkir.com/business/?p=2395 Waitrose wins back customers as grocery sector sees less sign of ‘recession panic’

Recession panic is “ebbing away” and shoppers are returning to their old spending patterns, according to market research.

A year ago, shoppers were defecting to Lidl and Aldi, forcing rivals such as Asda and Tesco to move to more aggressive pricing. Analysts expected Waitrose to suffer as customers reined in their spending. But a TNS Worldpanel market update, regarded as gold standard research within the food retailing industry, says there are signs of a return to normality.

TNS says it is not predicting a “return to pre-recession growth” but says shoppers may have acted too hastily to save money last year: “The grocery sector suffered from an over-reaction at the end of 2008 when Aldi posted year-on-year sales growth of 26% and Waitrose saw a sales decline.” Now the tables have turned. In the last three months Waitrose’s sales rose by 11.2%. Aldi had growth of 8% – one third its rate last autumn – while Lidl managed only 5.2% growth.

Waitrose, which is part of the John Lewis Group, has been boosted by new stores acquired from Somerfield and its new Essentials range of basic products, launched in the spring, which has beaten all sales targets.

Asda, Sainsbury’s and Morrisons are all gaining market share – but Tesco is sliding with 4.6% growth. It now controls 30.9% of the market, down from a peak of 31.8% in October 2007.

TNS said the grocers’ sales growth, which has been boosted by inflation over the past 18 months, will now come under a new pressure as price rises fall back. The researchers calculate that food inflation is now running at 4.3%.

- By Julia Finch | Guardian.co.uk

]]> 4141 2009-09-28 17:34:02 2009-09-29 00:34:02 open open shoppers-tire-of-cutting-corners-on-food publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2395#comments wfw:commentRSS http://zikkir.com/business/2395/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2395 syndication_item_hash 42b5c7a39a00f143228b4c34181d1ef5 Airlines crisis likely to keep fares low http://www.ethiopianreview.com/business/4142 Tue, 29 Sep 2009 00:34:02 +0000 http://zikkir.com/business/?p=2392 Recession, high oil prices and fierce competition will keep fares low for years, says Iata

Millions of airline passengers will benefit from depressed ticket prices well into the next decade, according to a leading industry body, as carriers continue to lose billions of dollars in the recession.

Rising oil prices, faltering demand and intense competition will see the global airline industry post a loss $27.8bn (£16.9bn) for 2008 and 2009, the International Air Transport Association said today.

Iata, which represents hundreds of major carriers including British Airways and American Airlines, said it expected fares to remain low until 2013. This year Iata expects yields, or the average revenue per passenger, to fall by 12%. Ryanair, Europe’s largest short-haul carrier, has forecast a 20% decline in fares as it slashes prices in order to fill an expanding fleet.

Giovanni Bisignani, Iata chief executive, said the industry would lose $80bn in revenues this year due to falling passenger numbers and weak fare growth. “The situation that we see with the yields going down could be a long-term disaster. After every crisis we see that the yields never return to the starting point.

“This could be a lasting structural change. We don’t see industry revenues returning to 2008 levels until 2012 or 2013 at the earliest.”

Iata said it expected the industry to lose $11bn this year, up from a previous estimate of $9bn, and revised upwards last year’s combined losses from $10.4bn to $16.8bn creating a combined two-year loss of $27.8bn. Worldwide passenger numbers this year are expected to fall by 4% and the European market is expected to post the biggest loss in 2009, at $3.8bn. Traffic is expected to improve next year, with passenger numbers up by 3.2%.

However, the industry is expected to lose $3.8bn in 2010 because rising fuel costs, which account for up to a third of an airline’s overheads, are forecast to combine with weak fare growth in holding down industry revenues.

- By Dan Milmo | Guardian.co.uk

]]> 4142 2009-09-28 17:34:02 2009-09-29 00:34:02 open open airlines-crisis-likely-to-keep-fares-low publish 0 0 post syndication_source_uri http://zikkir.com/business syndication_item_hash 305f0c126cbe95995379695b0357bb2f syndication_permalink http://zikkir.com/business/2392 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/2392/feed rss:comments http://zikkir.com/business/2392#comments syndication_source zikkir BAE in talks with unions over cutting 1,100 jobs http://www.ethiopianreview.com/business/4139 Tue, 29 Sep 2009 00:34:03 +0000 http://zikkir.com/business/?p=2388 Defence contractor BAE to close Cheshire factory in 2012 as MoD contract to make Nimrod ends

Defence contractor BAE Systems said today that it is in talks with unions about cutting more than 1,100 jobs as aircraft orders dry up.

BAE will close its factory at Woodford in Cheshire at the end of 2012 as the £3.6bn contract from the MoD to make Nimrod surveillance aircraft comes to a close. The factory, which made 4,000 Lancaster bombers during the second world war, employs 630 people. A further 205 jobs will be lost at Samlesbury in Lancashire, 170 jobs at Warton in Lancashire and 111 jobs at Farnborough in Hampshire as demand falls for maintenance and upgradeson Harrier and Tornado jets.

Andy Jackson, 47, a logistics operator from Macclesfield, Cheshire, has worked at Woodford for nearly 30 years. “My father worked here before me and I have been here for 29 years, so it is a sad day,” he said.

The announcement came as shadow chancellor George Osborne hinted that there could be cuts in the defence budget under a Tory government. A strategic defence review is due to be held after the general election.

A BAE spokesperson said the job cuts were part of the “life cycle” of demand. The contracts ran their course, and the company would look to focus on fresh contracts, with the MoD having committed to ordering two aircraft carriers and more military submarines, she said. “We have to be flexible in terms of our resources, and this is part of how we manage our business – matching our workforce with the work,” she said, adding that some of the workers would be redeployed in other parts of the company.

The Confederation of Shipbuilding and Engineering Unions said the news was “bitterly disappointing”, adding that it believed it was possible to continue production at Woodford.

Industry bodies expressed concern that spending cuts in the defence budget could be imminent. Matthew Knowles from the Defence Industries Council trade body said the government needed to review the requirement based on deployments in Afghanistan and future needs rather than allocate a certain budget and then see what can be done within that framework. “Defence has seen its allocation fall from 4.4% of GDP in 1989 to 2.3% in 2009 – it has already made its contribution to reducing government spending,” he said.BAE Systems has 106,400 employees worldwide. Its share price went up 3.6p – over 1% – to 343.1p today.

- By Abhinav Ramnarayan | Guardian.co.uk

]]> 4139 2009-09-28 17:34:03 2009-09-29 00:34:03 open open bae-in-talks-with-unions-over-cutting-1100-jobs publish 0 0 post syndication_item_hash d0a70359ec6e4b0c17fa2fab719aa322 syndication_permalink http://zikkir.com/business/2388 syndication_feed http://www.zikkir.com/business/feed syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/2388#comments wfw:commentRSS http://zikkir.com/business/2388/feed Wells Fargo fires executive who partied at repossessed Malibu mansion http://www.ethiopianreview.com/business/4140 Tue, 29 Sep 2009 00:34:03 +0000 http://zikkir.com/business/?p=2385 US bank sacks vice president for misuse of $12m California beach house lost by victims of the Bernard Madoff fraud

For an executive at the US bank Wells Fargo, a repossessed $12m beach house in southern California proved just too tempting. The financial institution has fired a top loans officer for using a luxurious Malibu property for a series of family getaways, culminating in a summer party at which guests arrived by yacht.

The beach house, in an exclusive gated development where neighbours include the Hollywood actor Tom Hanks, fell into the hands of Wells Fargo when its owners lost their savings to the Wall Street fraudster Bernard Madoff, leaving them unable to service loans on the property. But after the bank took ownership, nearby residents became suspicious about activity there, saying a family appeared to be using the house for long weekends.

Concern came to a head in late August, when neighbours say an elaborate party took place at the property, with about 20 people ferried by dinghy from an offshore yacht to join in with the revelry. Meanwhile, a local estate agent told the Los Angeles Times that Wells Fargo was spurning offers to show the house to potential buyers.

Enquiries by fellow residents of the Malibu Colony development established that Cheronda Guyton, a senior vice president of Wells Fargo, had been issued with a homeowner’s parking pass for the property. After an investigation, Wells Fargo announced that it had fired an employee, identified by a spokeswoman as Guyton, who was responsible for overseeing commercial foreclosed properties.

In a statement, the San Francisco-based bank said “a single team member” had been responsible for violating company policies and “as a result, employment of this individual has been terminated”. The bank continued: “We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members.”

The US property market has been engulfed by a wave of foreclosures over the last two years, as falling prices have left homeowners unable to refinance unsustainable mortgages. Foreclosure filings on properties are running at a rate of more than 300,000 per month and the property data firm RealtyTrac recently forecast that 3.4m homes will be subject to proceedings during 2009. California, previously a hotspot with soaring prices, is among the worst affected US states, as home values have fallen with a bump.

- By Andrew Clark | Guardian.co.uk

]]> 4140 2009-09-28 17:34:03 2009-09-29 00:34:03 open open wells-fargo-fires-executive-who-partied-at-repossessed-malibu-mansion publish 0 0 post rss:comments http://zikkir.com/business/2385#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir wfw:commentRSS http://zikkir.com/business/2385/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/2385 syndication_item_hash bb0b6585e9a57d3d019277b7aff9c7e4 Alibaba to buy controlling stake in HiChina http://www.ethiopianreview.com/business/4169 Tue, 29 Sep 2009 02:22:22 +0000 http://zikkir.com/business/?p=6041 China’s Alibaba.com Limited is to pay 540 million yuan (79.06 million U.S. dollars) for a controlling stake in China Civilink (Cayman), which operates in China as HiChina Web Solutions, Alibaba announced on Monday.

According to the purchase agreement, Alibaba will acquire HiChina for cash in two phases, said a statement on the Alibaba.com website. The first phase will see Alibaba acquire 85 percent of HiChina for a cash consideration of 435.42 million yuan (63.75 million U.S. dollars).

The additional 14.67 percent retained by the founders of HiChina could be sold to Alibaba for an additional 104.56 million yuan (15.31 million U.S. dollars) dependent upon HiChina reaching certain performance targets, according to the agreement terms.

HiChina, founded in 1996, is devoted to providing comprehensive Internet infrastructure services to enterprises, covering domain and hosting services, enterprise e-mail systems, website building and e-commerce consultation.

The deal is the largest-yet investment by Alibaba, a global leader in business-to-business e-commerce. It was founded in 1999 in east China’s Hangzhou City.

Alibaba will get the large customer base, new applications, automated “do it yourself” website construction technology and management and operating team of HiChina, according to the terms of the agreement.

The investment is expected to be completed by the end of 2009. HiChina will keep its brand and independent operation. HiChina’s products and services will be part of Alibaba.com’s Information Technology Business Unit, which is focused on small businesses.

“HiChina is an Internet company that has great profitability and healthy financial conditions,” said Wu Wei, Alibaba’s chief financial officer. “Both sides thought the price of the deal was within a rational range.”

The investment will make the most of the advantages of Alibaba and HiChina in their own fields and provide more comprehensive and better products and services to China’s small businesses, he said.

The takeover would not involve lay offs of HiChina employees because it did not involve a merger or restructuring, said Zhang Xiangdong, founder and president of HiChina. – China.org.cn

]]> 4169 2009-09-28 19:22:22 2009-09-29 02:22:22 open open alibaba-to-buy-controlling-stake-in-hichina publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6041#comments wfw:commentRSS http://zikkir.com/business/6041/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6041 syndication_item_hash bf7f4733498d8574ebbd14c872e7ff38 China continues anti-dumping measures on some imported PVC http://www.ethiopianreview.com/business/4168 Tue, 29 Sep 2009 02:23:02 +0000 http://zikkir.com/business/?p=6043 China’s Ministry of Commerce (MOC) announced Monday that it will maintain anti-dumping measures on some imported polyvinylchloride (PVC) from Sept. 29.

The anti-dumping measures target PVC, one of the most widely used materials in the chemical industry, imported from the United States, the Republic of Korea, Japan and Russia.

According to the ministry, the period will be five years.

China launched anti-dumping measures on PVC from those countries in 2003 for a period of five years, and launched an investigation into ending of the measures in September 2008.

The MOC said that if China suspended anti-dumping measures on the material, the domestic industry would continue to be harmed.

The country’s importers should pay anti-dumping taxes to customs departments when importing such products, said the MOC.

The product from Taiwan is also among the mainland’s anti-dumping list. – China.org.cn

]]> 4168 2009-09-28 19:23:02 2009-09-29 02:23:02 open open china-continues-anti-dumping-measures-on-some-imported-pvc publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6043#comments wfw:commentRSS http://zikkir.com/business/6043/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6043 syndication_item_hash 2f7bb8c1c4713750210772e0dc233ad3 Vice Premier asks SOEs to promote reform, innovation http://www.ethiopianreview.com/business/4167 Tue, 29 Sep 2009 02:23:46 +0000 http://zikkir.com/business/?p=6045 China’s state-owned enterprises (SOE) should deepen reform, promote innovation, and enhance restructuring and management to contribute to a sound and stable economic development, said Vice Premier Zhang Dejiang on Monday.

Zhang made the remarks at a meeting in Beijing, urging the SOEs to make stable and relatively fast development a priority, and fulfill production targets.

Efforts should also go to industrial restructuring and encouragement of core-technology innovation to strengthen competitiveness.

Before the meeting, Zhang visited staff and workers in the China Aerospace Science and Technology Corporation and China Shipbuilding Industry Corporation, among other companies. – China.org.cn

]]> 4167 2009-09-28 19:23:46 2009-09-29 02:23:46 open open vice-premier-asks-soes-to-promote-reform-innovation publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6045#comments wfw:commentRSS http://zikkir.com/business/6045/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6045 syndication_item_hash 8b705befef9ca654b7b73870a9448cc9 Non-tradable shares to flood markets in October http://www.ethiopianreview.com/business/4166 Tue, 29 Sep 2009 02:24:41 +0000 http://zikkir.com/business/?p=6047 A large number of non-tradable shares will pour into the stock market a week after the National Day holiday, potentially leading to turbulence in the financial markets, according to a report from the Shanghai Securities News Saturday.

Analysts are concerned that the selling pressure from major corporations, unlocking shares acquired at a low cost a few years ago would possibly overwhelm the market, and therefore counteract the rising share prices.

Statistics from Southwest Securities show that a total of 1.92 trillion yuan (281.2 billion U.S. dollars) unlocked non-tradable shares from 27 companies could be publicly traded beginning the second week of October, which is almost 12 times more than those traded a month ago.

Industrial and Commercial Bank of China (ICBC), Sinopec, and Shanghai International Port Group (SIPG) are the top three companies among all of those who are allowed to unlock shares. The non-tradable shares of the three companies will amount to 236 billion, 57 billion and 13 billion respectively.

In addition, the non-tradable shares to be unlocked next month will account for over 40 percent of the total number unlocked this year.

The newspaper said the number of non-tradable shares, which is estimated at 319.2 billion, will be the largest amount since the Chinese non-tradable share reform plan was carried out in 2005.

Stock analysts believe that the impact of the flood can be mitigated if State-owned enterprises can hold onto their tradable shares.

Zhang Gang, an analyst from Southwest Securities, told the Global Times that the unlocked non-tradable shares would not result in a similarly large reduction of shareholders’ holdings, because most of the shares are held by State-owned companies, which have no need to divest in a hurry.

But Zhang also warned that the large number of the unlocked non-tradable shares would cause concern in the market.

He further stated that the unstable economic climate may lead shareholders with unlocked non-tradable shares to decide to get rid of their holdings. – China.org.cn

]]> 4166 2009-09-28 19:24:41 2009-09-29 02:24:41 open open non-tradable-shares-to-flood-markets-in-october publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6047#comments wfw:commentRSS http://zikkir.com/business/6047/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6047 syndication_item_hash 1a7dd85658de8f6fbc22a20a5eebdba1 Hotel industry eager to expand http://www.ethiopianreview.com/business/4165 Tue, 29 Sep 2009 02:25:43 +0000 http://zikkir.com/business/?p=6049 While the hospitality industry has suffered along with the rest of the economy in most countries, China remains one of the few places that are ripe for hotel expansion.

“The economic environment, the increasing middle-income population in China, the increase in disposable incomes and the fast development of infrastructure: All indicate the growth of China’s travel and tourism development in the years to come,” said Zhao Jinlin, a professor of hospitality and tourism management at Florida International University.

It was with this in mind that several foreign hotel chains have decided to expand in China by way of rebranding.

Holiday Inn, a subsidiary of the InterContinental Hotel Group (IHG), started a $1 billion relaunch campaign last year in China.

The number of visitors to the Chinese mainland fell this year for the first time since 2003, an expected result following the 2008 Beijing Olympics. But the numbers are expected to rebound in coming years.

“China has (surpassing the United Kingdom) become IHG’s largest market outside of the United States,” said Keith Barr, regional managing director of IHG for China.

With more than 90 percent of its customers coming from within China, the importance of the country’s emerging middle class makes Holiday Inn confident about its continuing investments in the country,” Barr said.

The group operates 48 Holiday Inn hotels and 22 Holiday Inn Express hotels in China, with many concentrated in cities such as Beijing and Shanghai.

There are also another 60 Holiday Inn and Holiday Inn Express hotels under development.

In addition to Holiday Inn, Hilton also plans to add another 33 hotels in China.

And earlier this year, Ramada Worldwide, part of the Wyndham Hotel Group, announced its continued expansion with two new hotels in China.

One of its two new hotels will be the world’s largest Ramada, with 1,000 rooms, and be located in Hainan province.

“Rebranding is often not only economically rewarding, but also economically required,” said Robert J. Kwortnik, a professor at Cornell University’s School of Hotel Administration.

“The lodging industry is incredibly dynamic. Consumers need to be reminded why – and how – certain brands offer value, and also how brands have evolved with new design and service features,” Kwortnik said.

As part of their rebranding efforts, foreign-owned hotel chains in particular are trying for a more localized appeal.

IHG, for example, has become the first international hotel group to enter the Beijing suburbs with the rebranded Holiday Inn Beijing Moon River earlier this year.

This kind of idea might make some difference to local customers, but Kwortnik said the challenge is how to convince the Chinese market that the hotel brands are not essentially interchangeable.

“The challenges they are facing are the competition among themselves and competition from Chinese local brands,” Zhao said.

“Whoever provides the best products and services will win Chinese and world travelers,” Zhao said. – China.org.cn

]]> 4165 2009-09-28 19:25:43 2009-09-29 02:25:43 open open hotel-industry-eager-to-expand publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6049#comments wfw:commentRSS http://zikkir.com/business/6049/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6049 syndication_item_hash 959f52f018bc729a9581a5b4068f646e Freight index is up for country’s ports http://www.ethiopianreview.com/business/4164 Tue, 29 Sep 2009 02:26:23 +0000 http://zikkir.com/business/?p=6051 The Chinese container freight business, partly buoyed by Christmas orders, is enjoying its best numbers since the start of the global financial crisis.

But negative factors are helping keep optimism at bay among the country’s ports and shipping companies.

Through Sept 11, the Chinese Container Freight Index rose to 941.9 points after continuous increases during the previous two weeks – a 23.39 percent hike compared with the lowest point in June. Early this month, the index rose 2.1 percent week-on-week.

Ren Minqiang, head of Qingdao Qianwan Container Terminal Co Ltd, said he estimated a “shining” September, based on freight going up nearly 9 percent in the first two weeks of the month, compared with the same period last year.

Ren said autumn is traditionally a strong time for Chinese shipping because of Christmas holiday business.

In the first quarter of 2009, when business was at its worst, Ren said he suggested his staff go home to enjoy their annual leave.

The situation is different now, he said.

According to data released by the Shanghai Shipping Exchange, the average shipping space utilization ratio has reached 95 percent since July – up from 60 percent to 70 percent in February.

“Space is full again, as if we are back to prosperous times,” said Wu Wei, general manager of Sinotrans Fujian Corp.

Wei Jiafu, chairman of China Ocean Shipping (Group) Co, China’s largest global shipping group, said European and US markets are going to demand more Chinese exports as the financial situation improves in those countries.

Shipping companies and ports have already lifted prices for their services.

Luo Xiong, an analyst with Merchants Securities, said freight prices have passed the break-even point at shipping companies. By comparison, during the worst of the slump, some companies lost $500 to $600 per delivered container.

Still, there are concerns the boom in business won’t last long. Demand and prices will decline again after this fall’s peak season, analysts said.

“For the entire container industry, it is still quite thorny to realize a profit within one to two years,” said Wu Yunying, an analyst with Changjiang Securities.

During the first half of this year, the container freight division of China Ocean Shipping (Group) Co reported a 3.4 billion yuan loss, versus a 2.2 billion yuan profit during the same period last year. – China.org.cn

]]> 4164 2009-09-28 19:26:23 2009-09-29 02:26:23 open open freight-index-is-up-for-country%e2%80%99s-ports publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6051#comments wfw:commentRSS http://zikkir.com/business/6051/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6051 syndication_item_hash 65f39c07823eb1b31026e01ef10c3265 Int’l engine giants bid for C919’s turbine http://www.ethiopianreview.com/business/4225 Wed, 30 Sep 2009 02:23:10 +0000 http://zikkir.com/business/?p=6091 At the grand opening ceremony of the Shanghai Pratt & Whitney Aircraft Engine Maintenance Company on September 24, Todd J. Kallman, president of the Commercial Engines and Global Services Unit, used the opportunity to deliver a message to the Commercial Aircraft Corporation of China (COMAC): Pratt & Whitney is actively participating in China’s C919 aircraft project and attempting to supply its cutting-edge PW100G jet engine.

Like Pratt & Whitney, other major international engine makers like CFM and Goodrich have also shown interest in supplying engines to COMAC’s C919 aircraft.

Compared with existing engines on the world market of comparable thrust, the Pratt & Whitney engine will raise fuel efficiency by 12-15 percent while reducing noise and exhaust emissions by half each, according to Kallman, who declined to reveal the results of the negotiation with COMAC.

For more information, please consult the original coverage in Chinese at:

http://intl.ce.cn/zgysj/200909/25/t20090925_20090936.shtml
- China.org.cn

]]> 4225 2009-09-29 19:23:10 2009-09-30 02:23:10 open open int%e2%80%99l-engine-giants-bid-for-c919%e2%80%99s-turbine publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6091#comments wfw:commentRSS http://zikkir.com/business/6091/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6091 syndication_item_hash 6866b5cd5018393b7436537dbf17e401 G20 shifts more IMF voting power to developing countries http://www.ethiopianreview.com/business/4224 Wed, 30 Sep 2009 02:23:52 +0000 http://zikkir.com/business/?p=6093 The Group of 20 (G20) countries agreed in Pittsburgh yesterday to increase developing countries’ voting power at the International Monetary Fund (IMF) by at least five percent, a major move to improve the international organization’s legitimacy and effectiveness.

“We are committed to a shift in IMF quota share to dynamic emerging markets and developing countries of at least 5 percent from over-represented countries to under-represented countries using the current quota formula as the basis to work from,” said a Leaders’ Statement issued after a two-day summit meeting of the world’s major economies in Pittsburgh, the US state of Pennsylvania.

“Today we have delivered on our promise to contribute over US$500 billion to a renewed and expanded IMF New Arrangements to Borrow (NAB),” the statement said.

The G20 also committed to protecting the voting share of the poorest in the IMF. On this basis and as part of the IMF’s quota review, to be completed by January 2011, the G20 urged to accelerate the work “toward bringing the review to a successful conclusion.”

Analysts believe this move will help improve the IMF’s credibility, legitimacy and effectiveness as many developing countries have complained that they were underrepresented in the international organization.

The commitment by the G20 to a shift in IMF representation is “a groundbreaking step” to improve the IMF’s legitimacy and effectiveness, said IMF Managing Director Dominique Strauss-Kahn.

“I am very encouraged by the outcome of the G20 summit, including the new role given to the IMF,” he said, praising the reform as “a decisive move.”

The reform was also hailed by many countries. He Yafei, China’s vice foreign minister, said earlier yesterday that a shift in voting rights at the IMF was a key success of the Group of 20 summit.

“The most important thing is to send a message, that is to say the governance structure and decision-making procedures of the [international financial institution] should reflect the reality of the world economy today,” He said.

“I don’t think there’s anybody who does not believe this is a necessary shift,” said US Treasury Secretary Timothy Geithner, acknowledging that there have been differences with European countries on the shift at the IMF.

The loss in power would come from European nations, whose global economic clout has shrunk over the past two decades.

However, some analysts believe the reform failed to fully redress IMF imbalances as the poorest countries do not have enough voices, while some main emerging countries are still underrepresented in the organization.

“We welcome the G20’s recognition that the IMF needs to change. Unfortunately, this updating of the IMF quota share is not real reform, it is tinkering at the edges,” said Max Lawson, Oxfam senior policy adviser. “Without change to the IMF voting rules to give poor countries a real say, the IMF will remain the world’s rich country club.”

“The IMF must deliver on the promise of wider reform if it is to have a chance of being the ‘legitimate and effective’ institution the G20 envisages,” he said.

The IMF will play a critical role in promoting global financial stability and rebalancing growth, said the statement released by the G20 leaders.

“The IMF should continue to strengthen its capacity to help its members cope with financial volatility, reducing the economic disruption from sudden swings in capital flows and the perceived need for excessive reserve accumulation,” the statement said.

“As recovery takes hold, we will work together to strengthen the Fund’s ability to provide even-handed, candid and independent surveillance of the risks facing the global economy and the international financial system,” it added.

Moreover, the IMF will be given more power to monitor member countries’ policy frameworks and their collective implications for financial stability and the level and pattern of global growth.

“This historic decision, and emergence of the G20 as a key forum for international economic cooperation, will lay the foundation for a deeper partnership in global economic policy between emerging and developing countries and the advanced economies,” said Strauss-Kahn. – China.org.cn

]]> 4224 2009-09-29 19:23:52 2009-09-30 02:23:52 open open g20-shifts-more-imf-voting-power-to-developing-countries publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6093#comments wfw:commentRSS http://zikkir.com/business/6093/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6093 syndication_item_hash 43dbbf73e61ccebb2d22af998a50e5dd Union seeks duties on imports of Chinese paper http://www.ethiopianreview.com/business/4223 Wed, 30 Sep 2009 02:24:35 +0000 http://zikkir.com/business/?p=6095 The United Steelworkers in the United States has filed a petition asking for anti-dumping and anti-subsidy duties on Chinese and Indonesian paper products.

This follows the union’s success in persuading President Barack Obama to impose tariffs on Chinese tire imports.

But the accusation has little footing, according to analysts, because the Chinese government does not provide subsidies for domestic paper makers.

Leo Gerard, international president of the organization which represents 850,000 workers in metals, mining, paper, rubber and chemicals, confirmed that the union, together with three American companies, had submitted the complaint against Chinese and Indonesian exports of coated paper.

The three companies involved are NewPage Corp, Appleton Coated LLC and Sappi Fine Paper North America.

Gerard estimated that US imports of coated paper had jumped 40 percent from a year earlier in the first half of 2009, and products from China and Indonesia accounted for nearly 30 percent of the US market.

However, according to China’s General Administration of Customs, China’s exports of coated paper to the US totaled 278,000 tons last year, less than 3 percent of US coated-paper consumption.

“China does not provide subsidies for paper producers,” said Li Shixin, an analyst at Guosen Securities Co. “China is not dumping either. The low price is the result of China’s cheaper labor costs, as well as the falling price of pulp on the global market since last year.”

Li said that if the US government imposed tariffs on Chinese and Indonesian exports of coated paper, it would raise the costs for US producers and make products such as leaflets, magazines and books more expensive for US consumers.

The union said the case is expected to take about a year to complete after the petition is filed with the US Department of Commerce and the US International Commission. – China.org.cn

]]> 4223 2009-09-29 19:24:35 2009-09-30 02:24:35 open open union-seeks-duties-on-imports-of-chinese-paper publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6095#comments wfw:commentRSS http://zikkir.com/business/6095/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6095 syndication_item_hash 185f3c2c042b1fa3498331aef146db47 MCCC welcomes China’s tyre makers to move to Malaysia http://www.ethiopianreview.com/business/4222 Wed, 30 Sep 2009 02:25:20 +0000 http://zikkir.com/business/?p=6097 China-based tyre manufacturers are advised to set up operations in Malaysia to avoid the extra duty imposed on their products when exporting to the United States.

Malaysian-China Chamber of Commerce (MCCC) Liew Choon Kong made this remark here on Saturday in the interview with Bernama, the country’s national news agency.

The United States recently imposed a punitive tariff of 35 percent on Chinese-made tyres imported by the U.S.

The practise of trade protectionism by the U.S. has led to strong objection by the China-based tyre manufacturers.

According to Liew, tyres produced in Malaysia would not be classified as Chinese made, allowing the tyre makers to save on taxes if their products were made in and exported from Malaysia.

Moreover, China bought a lot of rubber from Malaysia for tyre production, elaborated Liew.

Liew noted that amidst the current economic situation, the move would create more opportunities for business communities from both countries to collaborate.

He also said local food and beverage producers could tap the large market in China, especially the exports of coffee, a product China found difficult to obtain. – China.org.cn

]]> 4222 2009-09-29 19:25:20 2009-09-30 02:25:20 open open mccc-welcomes-china%e2%80%99s-tyre-makers-to-move-to-malaysia publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6097#comments wfw:commentRSS http://zikkir.com/business/6097/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6097 syndication_item_hash 8e904719373264383bd5f1245c513c70 Airbus to work closer with China’s aviation industry http://www.ethiopianreview.com/business/4221 Wed, 30 Sep 2009 02:25:59 +0000 http://zikkir.com/business/?p=6099 Airbus will expand and deepen its cooperation with the Chinese aviation industry, said Laurence Barron, president of Airbus China, on Saturday.

Laurence made the remarks at the Beijing International Aviation Expo that concludes on Saturday. He said, “Airbus is carrying out further cooperation with Chinese aircraft enterprises in many aspects, including R&D, installation and purchase of raw materials and spare parts.”

Airbus expects the value of its joint-venture projects in China to reach 200 million U.S. dollars in 2010 and 450 million U.S. dollars in 2015, Laurence said.

In 2008, Airbus purchased 105 million U.S. dollars worth of products in China and the trend is growing. More than half of the 5,800 Airbus planes serving in the world are installed with parts made by Chinese manufacturers, Laurence said.

He added that Airbus has been optimizing its A320 series to cope with the intensifying competition, especially the challenges to be brought up by China’s self-developed passenger plane.

Commercial Aircraft Corp. of China plans to put its 168-seat C919 passenger plane into market in 2016.

As a pioneer in the cooperation between Sino-EU aircraft industries, Airbus is in partnership with AVIC Harbin Aircraft Industry Co. Ltd. and AVIC Xi’an Aircraft Industry Co. Ltd. and has a general assembly plant in north China’s Tianjin City. – China.org.cn

]]> 4221 2009-09-29 19:25:59 2009-09-30 02:25:59 open open airbus-to-work-closer-with-china%e2%80%99s-aviation-industry publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6099#comments wfw:commentRSS http://zikkir.com/business/6099/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6099 syndication_item_hash b62fefe86aa9de1292f28c0dc2c794d5 Standard Chartered: China to register CPI growth http://www.ethiopianreview.com/business/4220 Wed, 30 Sep 2009 02:26:37 +0000 http://zikkir.com/business/?p=6101 China’s consumer price index (CPI), a major inflation gauge, might begin to see growth since November, said Stephen Green, head of research for Standard Chartered Bank in Shanghai on Saturday.

China’s CPI halted its enlarging declining pace since March due to the government’s stimulus measures and the CPI might rise around 4 to 5 percent in 2010, said the bank in its recent research report.

The CPI of the world’s third largest economy dipped 1.2 percent in August from a year earlier, China’s National Bureau of Statistics figures revealed. The rate of decline was 0.6 percentage points lower than that in July.

The Asian Development Bank earlier this week estimated China’s CPI would fall 0.5 percent from a year earlier in 2009 and rise 3 percent in 2010.

China can accept an inflation rate slightly higher than 2 percent, Zhou Xiaochuan, governor of the People’s Bank of China, the central bank, said earlier this week. – China.org.cn

]]> 4220 2009-09-29 19:26:37 2009-09-30 02:26:37 open open standard-chartered-china-to-register-cpi-growth publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6101#comments wfw:commentRSS http://zikkir.com/business/6101/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6101 syndication_item_hash ab1f6e0d4d194537c57346555df80d1a China taps into ‘flammable ice’ http://www.ethiopianreview.com/business/4219 Wed, 30 Sep 2009 02:38:56 +0000 http://zikkir.com/business/?p=6103 CCTV

China has successfully excavated combustible ice, a kind of natural gas hydrate, in permanent tundra in the south margin of the country’s northwestern Qilian Mountains, the Ministry of Land and Resources said Friday.

Samples of combustible ice were collected in the area in November 2008, making China the first country to collect the gas hydrate in tundra in the medium and low latitudes, according to the ministry.

It also shows that China has become the third country successfully excavating gas hydrate from a land-based area in the world after Canada and the United States, the ministry said.

Preliminary research shows that the prospective volume of natural gas hydrate in the country’s frozen earth regions is estimated to reach 35 billion tonnes of oil equivalent.

China successfully excavated combustible ice from below the floor of the South China Sea in May 2007. – China.org.cn

]]> 4219 2009-09-29 19:38:56 2009-09-30 02:38:56 open open china-taps-into-%e2%80%98flammable-ice%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6103#comments wfw:commentRSS http://zikkir.com/business/6103/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6103 syndication_item_hash 3cfcac33f3512cc44f2e2fa8b938fa26 Key power plant starts operation in SW China http://www.ethiopianreview.com/business/4218 Wed, 30 Sep 2009 02:45:24 +0000 http://zikkir.com/business/?p=6108 Xiaowan hydro station, a keystone power generation project in southwest China’s Yunnan Province, became operational Friday, according to a statement from the China Huaneng Group.

Built on the Lancang River since 1999, the first generating unit of the power station is now pumping out 700,000 kilowatts of electricity an hour while five other units of the same capacity are under construction.

The overall investment in the power station is 40 billion yuan (5.86 billion U.S. dollars). Its six generating units will have an annual capacity of 19 billion Kwh.

Another unit will be put into production by the end of 2009 and the remaining four will become operational in 2010.

The reservoir is designed to provide balance between rain and drought seasons, ensuring a stable output, the group said.

In addition to generating power, the station, whose reservoir will throughput a total of 14.9 billion cubic meters of water a year, will help improve flood control, irrigation and water transportation.

The group said the station’s arch dam was the world’s tallest and many technical obstacles were tackled during its construction in a quake-prone area but gave no further information. – China.org.cn

]]> 4218 2009-09-29 19:45:24 2009-09-30 02:45:24 open open key-power-plant-starts-operation-in-sw-china publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6108#comments wfw:commentRSS http://zikkir.com/business/6108/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6108 syndication_item_hash d6245a78354586f88f09db15ef7126af Hu calls for efforts to promote growth, balanced development http://www.ethiopianreview.com/business/4217 Wed, 30 Sep 2009 02:47:28 +0000 http://zikkir.com/business/?p=6110 Chinese President Hu Jintao on Friday called on world leaders to make every effort to promote global economic growth and a comprehensive, balanced and sustainable socioeconomic development.

HU

Chinese President Hu Jintao attends the Group of 20 (G20) Financial Summit in Pittsburgh of the U.S., Sept. 25.

In a speech at the Group of 20 (G-20) economic summit in Pittsburgh, Hu said the world economy has seen positive signs since the two G-20 summits held in Washington in November and in London in April.

“The international community’s confidence has strengthened, financial markets have moved toward stability and the world economy has seen positive signs,” the Chinese president said.

Hu warned that the foundation of an economic recovery is not yet solid, and that many uncertainties remain.

“A primary task at present,” he said, “is to counter the international financial crisis and promote a healthy world economic recovery.”

Hu called for more efforts be made in the following three areas:

– First, to stand firm in commitment to stimulating economic growth:

“All countries should keep up the intensity of their economic stimulus plans,” he said.

Both developed and developing countries should take more solid and effective measures and make a greater effort to boost consumption and expand domestic demand, he said.

“Major reserve currency issuing countries should take into account and balance the implications of their monetary policies for both their own economies and the world,” Hu said.

– Second, to stand firm in commitment to advancing reform of the international financial system:

“We should follow through on the timetable and the roadmap agreed upon at the London summit, increase the representation and voice of developing countries and push for substantive progress in the reform,” the Chinese president said.

He urged world leaders to improve the existing decision-making process and mechanism in international financial institutions, and encourage more extensive and effective participation of all parties.

“We should move forward the reform of the international financial supervisory and regulatory regime,” Hu said.

2

Chinese President Hu Jintao (R Front) talks with Canadian Prime Minister Stephen Harper (L Front) during the Group of 20 (G20) Financial Summit in Pittsburgh of the U.S., Sept. 25.

– Third, to stand firm in commitment to promoting balanced growth of the global economy:

The global economic imbalances include gaps between savings and consumption, and imports and exports in some countries. But more importantly, he said, it manifests itself in the imbalances in global wealth distribution, resource availability and consumption and the international monetary system.

“The root cause, however, is the yawning development gap between the North and the South,” Hu said.

He called on world leaders to build up international institutions that promote balanced development.

“We should scale up input in development in diverse forms … We should value the important role of technological cooperation in promoting balanced development, reduce man-made barriers to technology transfer, and create an enabling environment for developing countries to narrow the development gap,” Hu said.

The Chinese leader said his country has attached great importance to comprehensive, balanced and sustainable socioeconomic growth, and has mainly relied on expanding domestic demand, in mitigating the impact of the international financial crisis.

“In the first half of this year, despite the drastic contraction in overseas demand, China’s GDP managed to grow by 7 percent year-on-year,” he said.

Hu said that China has taken an active role in international development cooperation, and has been actively engaged in international cooperation to tackle the crisis since it broke out.

He said China will follow through on its assistance pledges and measures in a responsible manner, and within its capabilities offer more help to developing countries, particularly the least developed nations in Africa.

“I am confident that with the concerted efforts of the entire international community, we will prevail over this international financial crisis and usher in a more prosperous future for the world economy,” he said.

Leaders from the Group of 20 gathered in Pittsburgh on Thursday and Friday to discuss ways to promote a recovery from the world economic and financial crisis.

3

Chinese President Hu Jintao (R5 Front) poses for photos with other participants during the Group of 20 (G20) Financial Summit in Pittsburgh of the U.S., Sept. 25.
- China.org.cn

]]> 4217 2009-09-29 19:47:28 2009-09-30 02:47:28 open open hu-calls-for-efforts-to-promote-growth-balanced-development publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6110#comments wfw:commentRSS http://zikkir.com/business/6110/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6110 syndication_item_hash 06cf8591feddd3c80da9b6d7b6d43495 HSBC moves Group CEO to HK http://www.ethiopianreview.com/business/4216 Wed, 30 Sep 2009 02:49:30 +0000 http://zikkir.com/business/?p=6113 HSBC Group announced Friday that it would relocate its Group Chief Executive from London to Hong Kong in February, a move in line with its strategy to focus on emerging markets.

“The move further positions the group for the shift in the world’s center of economic gravity from West to East,” said the HSBC in a statement.

Stephen Green, Group Chairman of HSBC, told a Xinhua reporter in a phone interview that the decision came from the expectation that China mainland as well as Hong Kong and Taiwan in particular and Asia in general, are set to be the best source of growth over the next decade or more for HSBC.

According to Green, HSBC’s business in Hong Kong and the mainland accounted for one third of the bank’s world business.

“But we do expect the percentage to increase over time because we expect the economy, particular of the mainland, to continue to be, probably, the fastest growing economy in the world,” he said.

The Group Chief Executive Michael Geoghegan will move to Hong Kong from Feb. 1, 2010, but will also maintain an office and a regular presence in London, according to the statement.

The relocation is aimed to fully realize growth potential of “the group’s strategically most important region” for the Group Chief Executive to operate from Hong Kong, the hub for HSBC’s Asia-Pacific business, said the bank.

HSBC Holdings PLC, the holding company of the HSBC Group, however, would remain domiciled in the United Kingdom and has no plans to move, according to the statement.

Founded in Hong Kong and Shanghai in 1865, the London-based HSBC Group is the largest international bank in the Asia-Pacific region, with total assets worth 2.4 trillion U.S. dollars at the end of June.

“The additional management presence in Hong Kong and focus on HSBC’s faster-growing markets is absolutely right for HSBC and entirely consistent with the strategy set out in 2006,” said Green.

“The move of HSBC does not mean the bank is pulling away from London, but operating from the two equally strategically important centers, i.e. Hong Kong and London,” he said.

According to Green, there will be a very close-working relationship between London and Hong Kong, which, he said, “is essential to the successful development of the HSBC group over the long term”.

The HSBC will focus primarily on the emerging markets, particularly Asia, the Middle East and Latin America, and also look at growing its business in Africa which is at the moment very small, he said.

Green said that the move is not linked to HSBC’s possible listing in China’s security market. But he said that HSBC would be very interested in listing in Shanghai if and when the Chinese authorities permit foreign companies to list there.

The bank said Michael Geoghegan will also become Chairman of the Hong Kong and Shanghai Banking Corporation Limited, the bank’s Asian unit, to succeed Vincent Cheng on 1 February 2010.

Cheng, who has chaired HSBC’s Asia business since 2005, will continue to report to the Group Chairman, and he remains an executive director and will continue to help the bank develop its businesses in the Chinese mainland, Hong Kong and Taiwan, according to the statement. – China.org.cn

]]> 4216 2009-09-29 19:49:30 2009-09-30 02:49:30 open open hsbc-moves-group-ceo-to-hk publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6113#comments wfw:commentRSS http://zikkir.com/business/6113/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6113 syndication_item_hash 1eefdb9b0c62e5da0d217ce28bb67bee Ford begins construction of new plant in China http://www.ethiopianreview.com/business/4215 Wed, 30 Sep 2009 02:50:13 +0000 http://zikkir.com/business/?p=6115 .S-based Ford Motor Co. began building a new plant in China’s southwest Chongqing city Friday, mainly to produce the next generation Focus car.

Covering about 100 hectares with a total investment of 3.34 billion yuan (490 million U.S. dollars), the plant is being jointly built by the Changan Ford Mazda Automobile Co. Ltd., a joint venture of Ford; Chongqing-based Chana Auto Co. Ltd. and Japan’s Mazda Motor Corp..

The plant, the second in Chongqing and third in China, will have an annual output of 150,000 cars after completion in 2012.

“China is one of Ford’s most important markets in the world and also the fastest growing market,” said Ford’s CEO Allan Mulally at the foundation stone laying ceremony of the new Ford plant.

“The new plant in Chongqing is an important step for Ford to expand its business in China,” he said.

Ford will introduce four new models to China in the next three years. Ford’s new engines and new energy aotomobiles will also be introduced to the Chinese market gradually, he said.

“I believe that with concerted efforts from all sides, Changan Ford Mazda cars will win consumers’ favor with excellent products and services, and the joint venture will become a model for China’s auto market,” said Xu Liuping, board chairman of Changan.

Changan Ford Mazda Automobile Co. Ltd has sold 144,601 cars under the Ford brand in the first eight months of 2009, up 30 percent on the previous year.

Ford is recovering rapidly from the global financial crisis. It is speeding up the restructuring and integration of its global resources in order to turn losses into gains in 2010, said Mulally. – China.org.cn

]]> 4215 2009-09-29 19:50:13 2009-09-30 02:50:13 open open ford-begins-construction-of-new-plant-in-china publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6115#comments wfw:commentRSS http://zikkir.com/business/6115/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6115 syndication_item_hash 3d1ca506bbeaf6b23a76252b81be0f05 Oil keep falling on oversupply http://www.ethiopianreview.com/business/4214 Wed, 30 Sep 2009 02:50:53 +0000 http://zikkir.com/business/?p=6117 Oil prices continued a week-long slump Friday after government reports showed the US continues to sit on a huge petroleum surplus as the driving season comes to a close.

Benchmark crude for November delivery gave up 19 cents to $65.70 a barrel on the New York Mercantile Exchange. In London, Brent crude fell 25 cents to $64.57 on the ICE Futures exchange.

Prices rebounded early Friday when President Barack Obama and the leaders of France and Britain issued a stern warning to Iran, demanding the country come clean on its nuclear program.

“Iran is breaking rules that all nations must follows,” Obama said at the opening of the G-20 economic summit in Pittsburgh.

Iran is OPEC’s second-largest oil producer after Saudi Arabia, and its southern border lies along the crucial Strait of Hormuz, where supertankers carry crude from the Persian Gulf to the rest of the world.

Any saber rattling toward Iran tends to boost oil prices. Still, the effect on Friday was relatively mild with oil producers exporting much less because of a drop in world demand.

“There’s a lot of countries that would be more than happy to go over their quotas and make up for Iran’s production,” said Phil Flynn, an analyst with PFGBest.

Oil prices also got a boost from Bernanke, who said he continues to support the expensive Term Asset-Backed Securities Loan Facility. The program, which gives loans to investors and is meant to spark bank lending, is seen as inflationary and has driven investors to commodities like oil.

Meanwhile, a Tesoro refinery in Los Angeles caught fire early Friday. The 300-acre (121-hectare) facility in Wilmington refines 97,000 barrels of oil per day. That may have had a larger impact on oil prices if demand for gasoline was not so weak.

In other Nymex trading, gasoline for October delivery lost 2 cents to $1.6171 a gallon, and heating oil for October delivery lost a penny to $1.6711 gallon. Natural gas gave up 4.7 cents to $3.91 per 1,000 cubic feet. – China.org.cn

]]> 4214 2009-09-29 19:50:53 2009-09-30 02:50:53 open open oil-keep-falling-on-oversupply publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6117#comments wfw:commentRSS http://zikkir.com/business/6117/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6117 syndication_item_hash dd67ec42251ae2a91680fede291da612 Industrial output up 8.1% in 1st eight months http://www.ethiopianreview.com/business/4213 Wed, 30 Sep 2009 02:51:51 +0000 http://zikkir.com/business/?p=6119 China’s industrial output rose 8.1 percent in the first eight months from the same period last year, said the Ministry of Industry and Information Technology (MIIT) Friday.

The growth rate was 7.6 percentage points lower than that in the same period last year, but 1.1 percentage points higher than that in the first half year.

In August alone, China’s industrial output expanded 12.3 percent year on year. The growth rate was the largest since September last year when the global economic slowdown hit China.

China’s exports in August dropped 23.4 percent year on year, indicating the country faced a tough exports situation, said a report on the MIIT website.

China finished 662.4 billion yuan (96.98 billion U.S. dollars) of industrial investment in August, up 23.1 percent year on year. Total industrial investment was 4.73 trillion yuan in the first eight months, up 26.6 percent year on year. – China.org.cn

]]> 4213 2009-09-29 19:51:51 2009-09-30 02:51:51 open open industrial-output-up-8-1-in-1st-eight-months publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6119#comments wfw:commentRSS http://zikkir.com/business/6119/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6119 syndication_item_hash 14a9d58dee3fdbb0032e07d750b9f930 How long will volatility in the Chinese stock market last? http://www.ethiopianreview.com/business/4212 Wed, 30 Sep 2009 02:52:39 +0000 http://zikkir.com/business/?p=6121 The Shanghai Composite Index, China’s stock market benchmark, began a steady climb from 1,820 points at the start of the year to reach a high of 3,478 in August, a growth of 91 percent. Major volatility closely followed, though, pulling the index down to 2,639 before sending it up again recently, to 3,068. Before long, the index tumbled once again, down to 2,900.

The indexes suggested an upward trend in the national stock market during the first seven months of the year. Why, then, would a major downturn suddenly hit in August, especially when, at the same time, the US Dow Jones Index saw a fresh high, beating its performance just before the market crashed in September 2008.

In other words, while extreme challenges lay ahead for the international financial situation, the Chinese stock market had already begun its recovery, as evidenced by the soaring index. But, as the international markets became more stable and stock prices began rising, the Chinese stock market oddly started plummeting. The subsequent pessimism felt as a result of the volatility in turn affected some international markets, though not quite as seriously, and indexes like the Dow Jones began to climb after a temporary dip.

Another question we have is how long this volatility will last. The plunge at the beginning of August, according to market analysts, was a natural adjustment to the preceding upward frenzy. The present adjustment brought the index down from 3,478 to 2,639, a loss of more than 800 points, or more than 25 percent, a decline that is by all means too acute to go unnoticed.

In my opinion, two key factors contributed to the recent instability. First, the Chinese stock market has never freed itself from being capital driven – every large influx of capital would give the market an instant surge. From January to August this year, credit funds in China increased by 8.15 trillion yuan (US$1.193 trillion). Since the economy was in a healing process, a large amount of the funds that were originally aimed at financing large-scale national projects, went into the stock markets instead. When the capital was forecast to drain out in the second half of the year, the market almost immediately started to tumble.

In fact, the increase of credit funds during H2 so far isn’t any different from that of previous years, and market liquidity is not expected to stagnate. With rumors of both, however, many investors have chosen to bail out of the wavering market, scared off by last year’s turbulence. On the flipside, the financial hurricane has also instilled a sense of caution into numerous Chinese investors, who otherwise would have continued with a starry-eyed view of the stock market and eventually burst the market bubble. That’s why last year’s economic turmoil was still a positive thing for the stock market’s long-term prosperity, despite the losses incurred.

The second factor is the government’s excessive eagerness for instant success. Once there’s a boom in the stock market, like during the first half this year, the authorities think it’s time to have numerous state-owned companies go public.

Although basic improvements have been made to the Chinese stock market over recent years, the focus of “going public” has never shifted from “the enclosure movement” – getting fast funds, or as the tool to becoming rich overnight. Therefore, among the swarm of companies wishing to be listed, companies like the Chinese State Construction Engineering Corporation and Metallurgical Corporation of China, accompanied by the so-called Growth Enterprise Market, have been able to solicit as many as 10 companies to raise capital by floating shares in a single trading day. Not only are acts like this never a reflection of the market’s prosperity, but they also cause panic, as market investors will inevitably perceive that domestic enterprises are once again rounding up their money, resulting in their subsequent escape. Financing giants like Vanke is just a case in point.

The current economy, both at home and abroad, are in the healing process. The US stock market has already seen steady climbing, while the Chinese economy is recovering at a better-than-expected rate. Meanwhile, listed companies report improved performance, and the domestic financial market has regained liquidity – all pointing to mounting momentum in the Chinese stock market during the second half of this year.

In light of the current state of the stock market, the authorities should pay close attention to drastic trends and institute the appropriate policies to guard the market against excessive risks, rather than purposefully upsetting the fragile market with harsh policies. And only by these means can the stock market resume its development, safeguarded by a well-meaning authority. – China.org.cn

]]> 4212 2009-09-29 19:52:39 2009-09-30 02:52:39 open open how-long-will-volatility-in-the-chinese-stock-market-last publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6121#comments wfw:commentRSS http://zikkir.com/business/6121/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6121 syndication_item_hash 209e1efbeffcddad8b43d4a207a6889c China to continue economic, financial restructuring http://www.ethiopianreview.com/business/4211 Wed, 30 Sep 2009 02:53:19 +0000 http://zikkir.com/business/?p=6123 China would continue to carry out its policies for economic and financial restructuring, Chinese officials said Thursday.

“All countries have their own problems, and we have been making utmost efforts to get our problems solved,” Ma Zhaoxu, director-general of the Information Department at the Chinese Foreign Ministry, told a news briefing on the sidelines of the ongoing Group of 20 (G20) Summit held in Pittsburgh, Pennsylvania.

“China has realized that its economic development mode has some flaws …and China has been effective in resolving these structural problems,” Ma Xin, director-general of the International Cooperation Department at the National Development and Reform Commission of China, told the same briefing.

Six high-ranking Chinese officials provided the briefing with their opinions on the economic, financial and monetary policies that China has implemented to deal with the international economic meltdown.

China has emphasized the efforts to boost international financial supervision and cooperation and strengthen supervision over important financial institutions and rating agencies, they said.

They also called on advanced economies to contribute to stabilizing their own economies and global financial markets.

Commenting on the trade imbalance between the developed countries and their developing counterparts, Ma Xin said the root cause was the imbalance in development.

“Narrowing the wide gap between the South and the North is a gradual process which requires efforts from both sides,” he said.

“Developed countries should take a greater responsibility and step up support to the developing nations,” he suggested.

China has also appealed that an open, fair and orderly international financial system should be established and efforts should be made to hasten the pace of reforming the administration of international financial institutions.

On some countries’ trade protectionist actions toward China in recent months, Yu Jianhua, director-general of the Department of International Trade and Economic Affairs at the Chinese Ministry of Commerce, said China firmly rejected such approaches.

“China is the single biggest victim of trade protectionism,” he said, noting that China had suffered 10 billion U.S. dollars in losses due to trade protectionism in the first eight months of 2009.

“Among 79 trade protectionism cases, 90 percent were from G20 member states, (and) China hopes that the wealthy countries will refrain from using protectionist measures again.”

At the height of the global economic meltdown, China sent trade promotion missions to other countries, the only country that took such measures to curb the spread of the crisis, Chinese officials pointed out.

China had made significant efforts to create favorable conditions for strengthening and consolidating the international monetary system, and had contributed to the maintenance of stability in global economic activities, they said.

As one of the regions with vigorous economic activities, Asia stood as one of the most important components of the international financial market and had made great efforts to improve their monetary system, they noted.

China’s currency swap with six Asian countries had contributed to regional financial stability, said Xie Duo, director-general of the International Department at the People’s Bank of China, China’s central bank.

The Chinese officials hoped the ongoing G20 Summit should be, among other things, institutionalized, and the representation of developing members should be promoted.

“Political commitments made at the previous two G20 Summits should be matched with concrete action,” said Yu from the Chinese Ministry of Commerce. – China.org.cn

]]> 4211 2009-09-29 19:53:19 2009-09-30 02:53:19 open open china-to-continue-economic-financial-restructuring publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6123#comments wfw:commentRSS http://zikkir.com/business/6123/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6123 syndication_item_hash 5d389131b1e97b32be31baad7d6e4501 Ford building new plant in China http://www.ethiopianreview.com/business/4210 Wed, 30 Sep 2009 02:54:10 +0000 http://zikkir.com/business/?p=6125 US-based Ford Motor Co. began building a new plant in China’s southwest Chongqing city Friday, mainly to manufacture the next-generation Focus car.

Covering about 100 hectares with a total investment of 3.34 billion yuan (490 million U.S. dollars), the plant is being jointly built by the Changan Ford Mazda Automobile Co. Ltd., a joint venture of Ford; Chongqing-based Chana Auto Co. Ltd. and Japan’s Mazda Motor Corp..

The plant, the second in Chongqing and third in China, will have an annual output of 150,000 cars after completion in 2012.

“I believe that with concerted efforts from all sides, Changan Ford Mazda cars will win consumers’ favor with excellent products and services, and the joint venture will become a model for China’s auto market,” said Xu Liuping, board chairman of Chana, at the foundation stone laying ceremony. – China.org.cn

]]> 4210 2009-09-29 19:54:10 2009-09-30 02:54:10 open open ford-building-new-plant-in-china publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6125#comments wfw:commentRSS http://zikkir.com/business/6125/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6125 syndication_item_hash e9403b8a3615c926fed5b65124dc18db Societe Generale to launch 50 outlets http://www.ethiopianreview.com/business/4209 Wed, 30 Sep 2009 02:54:54 +0000 http://zikkir.com/business/?p=6127 Societe Generale aims to create a network of 50 outlets in China as part of an expansion strategy aimed at enlarging its market share in the country, a senior banker said yesterday.

“We are strongly committed to the Chinese market,” Pierre Bonzom, head of commercial and personal banking of Societe Generale (China) Ltd, said yesterday in Shanghai. “We’re investing in people, IT systems and a network to expand our China business.”

France’s second-largest bank is expecting to move close to profitability in two to three years, backed by its strong corporate banking business, Bonzom said.

The French bank set up its locally incorporated subsidiary, Societe Generale (China), in Beijing in September 2008, with registered capital of 4 billion yuan (US$586 million).

Societe Generale isn’t the only foreign bank seeking to flex more muscle in the China market. HSBC, Citicorp and other big-name lenders are moving ahead with expansion plans.

The China Banking Regulatory Commission last month approved Societe Generale’s application to be allowed to offer retail yuan services. – China.org.cn

]]> 4209 2009-09-29 19:54:54 2009-09-30 02:54:54 open open societe-generale-to-launch-50-outlets publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6127#comments wfw:commentRSS http://zikkir.com/business/6127/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6127 syndication_item_hash dce76b07e56642a92a6264bbd4f22560 EU imposes anti-dumping tariffs on Chinese aluminum foil http://www.ethiopianreview.com/business/4208 Wed, 30 Sep 2009 02:55:37 +0000 http://zikkir.com/business/?p=6129 The European Union decided Thursday to impose five-year duties on aluminum foil imported from China, Brazil and Armenia over alleged dumping charges.

The EU said in its decision that the duties were up to 30 percent as a punishment to Chinese exporters for selling the product at below cost, or dumping. Reports say that Shanghai-based Alcoa Aluminum Products Co. was affected by the punishment.

The tariffs on Brazilian products are 17.6 percent, Armenia’s are 13.4 percent.

The EU accepted an offer by Brazil’s Companhia Brasileira de Aluminio to sell at a minimum price in return for an exemption from the anti-dumping duty. It rejected a similar proposal by Armenia’s Rusal-Armenal company.

The five-year duties came after six-month provisional duties expired and will go into effect once being published in the EU’s Official Journal by Oct. 8. The six-month levies were up to 42.9 percent.

The EU staged a probe into the products from the three countries began in July 2008 after receiving a dumping complaint by the European Association of Metals.

The measure covers aluminum foil in rolls as wide as 650 millimeters and a weight exceeding 10 kilograms, with a thickness between 0.008 millimeter and 0.018 millimeter.

On the same day, the EU decided to slap tariffs as high as 39.2 percent on Chinese steel seamless pipes and tubes. – China.org.cn

]]> 4208 2009-09-29 19:55:37 2009-09-30 02:55:37 open open eu-imposes-anti-dumping-tariffs-on-chinese-aluminum-foil publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6129#comments wfw:commentRSS http://zikkir.com/business/6129/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6129 syndication_item_hash 1e26006ded2ab5286e79c34c7cc2bb10 GM expects more moves to stabilize auto sales http://www.ethiopianreview.com/business/4207 Wed, 30 Sep 2009 02:56:27 +0000 http://zikkir.com/business/?p=6131 General Motors says it expects further government stimulus measures to ensure stable auto sales in China after the tax cut on new cars expires at the end of the year.

“We expect there will be modifications in policies that are designed to ensure there is no sharp decline in car sales in January,” Kevin Wale, president and managing director of GM China, said at a media briefing in Shanghai yesterday.

China halved the tax on new cars with engine capacities of 1.6 liters or less to 5 percent last January as part of efforts to stimulate the lagging auto industry. The incentive will end on December 31.

“The Chinese government is fully aware of the danger of a sharp reduction in the market if policies are changed unilaterally,” Wale said.

Auto sales in China in the first half climbed almost 19 percent from a year earlier to 6.09 million vehicles, according to the China Association of Automobile Manufacturers.

Wale was attending the opening of GM’s China Science Lab in Shanghai, its eighth research facility in the world. The company said it hopes to tap into the growing Chinese market by working on breakthrough technology in propulsion systems and battery fabrication.

John Du, former general manager of Intel Corp’s China Research Center, will be director of the new research facility.

China’s auto sales may jump 28 percent to 12 million vehicles this year, overtaking the United States as the biggest car market in the world, an official at the National Development and Reform Commission said earlier this month.

Shanghai General Motors, GM’s joint venture with the SAIC Motor Corp, said sales in August almost doubled from a year earlier to more than 63,000 units. – China.org.cn

]]> 4207 2009-09-29 19:56:27 2009-09-30 02:56:27 open open gm-expects-more-moves-to-stabilize-auto-sales publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6131#comments wfw:commentRSS http://zikkir.com/business/6131/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6131 syndication_item_hash da2dfae348c817b27c6c4f7ae63ece38 Mainland debut for Apple’s iPhones http://www.ethiopianreview.com/business/4206 Wed, 30 Sep 2009 02:57:08 +0000 http://zikkir.com/business/?p=6133 Apple’s iPhone is scheduled to debut in China’s mainland, the world’s biggest mobile phone market, in three weeks in a partnership with China Unicom, the telecommunications carrier said yesterday.

The iPhone’s official entry has been keenly anticipated and expected to increase competition in the smart phone market with rivals such as Nokia and Dopod, said Wu Wenzhao, a telecommunications analyst at Beijing-based IT research firm Analysys International.

China Unicom and Apple initially will kick off with two models: the iPhone 3G and the latest iPhone 3GS. The price will be lower than models bought on the black market, which cost 3,000 yuan (US$441) or more, according to a China Unicom source.

“The cooperation will open the door for Apple to enter the huge China market,” said Sherrie Huang, an analyst at Ovum. “It also gives China Unicom a competitive weapon in the high-value subscriber segment.”

An estimated 10 million mainland users already have iPhones, according to Ovum, a UK-based consultant.

China Unicom will start commercial use of 3G phones next month, its Shanghai branch said. Users will be able to buy iPhones through various packages from a starting price of about 100 yuan, Shanghai Unicom said. – China.org.cn

]]> 4206 2009-09-29 19:57:08 2009-09-30 02:57:08 open open mainland-debut-for-apple%e2%80%99s-iphones publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6133#comments wfw:commentRSS http://zikkir.com/business/6133/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6133 syndication_item_hash d964490311437a7b9a7af7dd271d388e GEM companies now hoping to double initial expectations http://www.ethiopianreview.com/business/4205 Wed, 30 Sep 2009 02:57:52 +0000 http://zikkir.com/business/?p=6135 The first 10 companies approved to trade on China’s Nasdaq-style market plan to raise 6.7 billion yuan (US$977 million) in their share sales today, more than double the amount of money they initially said they would seek.

The average share price of the companies will be 55 times their 2008 earnings, compared with an average price-earnings ratio of 36 for initial public offerings on China’s main boards so far this year.

The pricey valuations aren’t expected to dent enthusiasm for the first shares to be floated on the new Growth Enterprise Market in Shenzhen, which opens trading next month as a conduit for innovative start-up companies to seek capital.

“Investors will rush to subscribe to the shares of these companies, so it’s not surprising that their offer prices may exceed reasonable ranges,” said Zeng Lingbo, an analyst at China International Capital Co Ltd.

Zeng suggested investors be cautious. If a company’s valuation isn’t backed up by strong growth potential, the return-on-investment risk may be high, Zeng warned.

Concern that the market might invite some wild speculation has spurred regulators to tighten trading rules.

The Shenzhen Stock Exchange, which will host the new market, said yesterday that any share moving more than 80 percent either up or down on its first day of trading would be suspended until three minutes before the market’s close.

That tightened existing rules suspending trading for 30 minutes after price movements of 20 percent and 50 percent.

The 10 companies’ prospectuses showed that they planned to raise a combined 2.8 billion yuan, but that figure has since swelled after the companies gauged investor demand to be strong and reckoned they could cash in on the intense interest.

“We estimate each account will require 1.5 million yuan to succeed in subscribing to 500 new shares in the online tranche for both retail and institutional investors,” said Lin Jin, an analyst at Shenyin & Wanguo Securities Co.

Some brokerages said a flood of investors had opened accounts this week to prepare for the GEM company share sales.

Some investors are obviously banking on so-called “stag profits,” the strategy of betting that new shares will surge on their debut and selling the stock on the first day for a quick gain.

“I opened an account for the new board this week in anticipation that the share prices will surge because new stocks are always favored by investors in China,” said an individual investor surnamed Yan. She said she had been investing in the stock market for more than a decade.

Among the 10 companies, Beijing Ultrapower Software Co is hoping to raise the most money. It is selling shares at 58 yuan each, which would raise 1.83 billion yuan. The company earlier said it planned to raise 503 million yuan.

The China Securities Regulatory Commission has ruled that firms must use excess funds from IPOs only in their main businesses.

Shanghai Bestway Marine Engineering Design Co Ltd is the only local company among the first 10. The Shanghai ship designer lifted its fundraising target to 350 million yuan from 120.56 million yuan. It sought the IPO to raise funds to finance two marine engineering design projects. Additional money raised will be applied to the second phase of one of the projects.

The Growth Enterprise Market has been in the planning stages for a decade. It was delayed several times because of a variety of concerns, ranging from the after-effects of the dotcom bubble collapse to last year’s market nosedive.

China is launching the new market to help small firms with big ideas to raise money. Smaller firms account for 99 percent of all companies in China and 75 percent of employment.

Still, banks have been reluctant to provide them financing because they don’t have solid track records. – China.org.cn

]]> 4205 2009-09-29 19:57:52 2009-09-30 02:57:52 open open gem-companies-now-hoping-to-double-initial-expectations publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6135#comments wfw:commentRSS http://zikkir.com/business/6135/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6135 syndication_item_hash ab1d10276e06f04b9e69d5723ee29528 Nobel laureate says not to make RMB convertible too rapidly http://www.ethiopianreview.com/business/4204 Wed, 30 Sep 2009 02:58:48 +0000 http://zikkir.com/business/?p=6137 Nobel laureate in economics Robert Mundell said Thursday that China should not make the Renminbi convertible too rapidly.

“I tend to be … conservative. Don’t do it too rapidly,” the “Father of Euro” told the audience of a lecture on the campus of the Chinese University of Hong Kong, saying that the gains from making the RMB convertible should be weighed against the losses.

The peg of the RMB has brought a lot of gains to China, he said.

China was once pushed on the convertibility issue some nine years ago. Had China made its currency convertible at that time, the gains would have been much less, he said.

Mundell became the fifth distinguished professor-at-large at the Chinese University of Hong Kong after the university created the post to attract renowned scholars to teach and provide leadership for the benefit of general academic advancement.

Mundell said one of the major implications of the recent economic crisis had been the harm done by the big swings in the exchange rates between the world’s major currencies, and thereby, the need for a global monetary system.

Mundell said an Asian currency area that include China, Japan and other economies might still be possible by 2015 as the world moves toward larger currency areas.

He also said the United States might be repeating its mistakes of late 1960s and early 1970s in the policy pursuit of monetary expansion and tax increases. Instead, it should cut taxes to get as much production as possible out of the monetary expansion, which should be limited to a lesser extent, he insisted. – China.org.cn

]]> 4204 2009-09-29 19:58:48 2009-09-30 02:58:48 open open nobel-laureate-says-not-to-make-rmb-convertible-too-rapidly publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6137#comments wfw:commentRSS http://zikkir.com/business/6137/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6137 syndication_item_hash d53c7e63e5de4adbe1033b6efcbcf4df Mundell says not to make RMB convertible too rapidly http://www.ethiopianreview.com/business/4203 Wed, 30 Sep 2009 02:59:31 +0000 http://zikkir.com/business/?p=6139 Nobel laureate in economics Robert Mundell said Thursday that China should not make the Renminbi convertible too rapidly.

“I tend to be … conservative. Don’t do it too rapidly,” the “Father of Euro” told the audience of a lecture on the campus of the Chinese University of Hong Kong, saying that the gains from making the RMB convertible should be weighed against the losses.

The peg of the RMB has brought a lot of gains to China, he said.

China was once pushed on the convertibility issue some nine years ago. Had China made its currency convertible at that time, the gains would have been much less, he said.

Mundell became the fifth distinguished professor-at-large at the Chinese University of Hong Kong after the university created the post to attract renowned scholars to teach and provide leadership for the benefit of general academic advancement.

Mundell said one of the major implications of the recent economic crisis had been the harm done by the big swings in the exchange rates between the world’s major currencies, and thereby, the need for a global monetary system.

Mundell said an Asian currency area that include China, Japan and other economies might still be possible by 2015 as the world moves toward larger currency areas.

He also said the United States might be repeating its mistakes of late 1960s and early 1970s in the policy pursuit of monetary expansion and tax increases. Instead, it should cut taxes to get as much production as possible out of the monetary expansion, which should be limited to a lesser extent, he insisted. – China.org.cn

]]> 4203 2009-09-29 19:59:31 2009-09-30 02:59:31 open open mundell-says-not-to-make-rmb-convertible-too-rapidly publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6139#comments wfw:commentRSS http://zikkir.com/business/6139/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6139 syndication_item_hash 8db9a061d250452f0202a90d3ebc1116 Duke Energy, ENN in clean energy venture http://www.ethiopianreview.com/business/4202 Wed, 30 Sep 2009 03:00:18 +0000 http://zikkir.com/business/?p=6141 Duke Energy, the third largest power utility in the US, yesterday signed an agreement with privately-owned ENN Group of China to accelerate the development of low-carbon and clean energy technologies.

The agreement includes potential development of commercial solar projects, such as solar power plants and solar component manufacturing facilities, Duke said in a statement.

The agreement also encompasses joint technology development in coal-based clean energy, biofuels, natural gas, smart grid, energy efficiency and carbon-capturing algae.

China is leading the world in investing in clean energy and greater progress can be made by joining forces and working together, said Duke Energy CEO Jim Rogers. “We must move at ‘China speed’ to combat global warming.”

Wang Yusuo, chairman of ENN Group said the company’s mission is to find ways to produce energy that pollutes less, conserves more and protects the environment.

At present the company supplies natural gas to approximately 20 million homes and businesses in China. ENN also has growing subsidiaries operating around the world working on an array of renewable energy technologies and zero emission coal-based power, carbon capture technologies and bio-energy, said Wang.

Under the memorandum of understanding (MOU) signed yesterday by senior executives from both companies, Duke Energy and ENN are launching a series of meetings to share information, view technology demonstrations and develop “best practice” models.

The companies are also evaluating a partnership to pursue the commercial development of “utility-scale” solar photovoltaic projects in the US.

The announcement follows a similar MOU signed in August in Beijing between Duke Energy and China Huaneng Group, China’s largest electric utility, encompassing high-level discussions and information-sharing on a number of renewable and clean-energy fronts.

According to China Greentech Report 2009, jointly issued by the PricewaterhouseCoopers and American Chamber of Commerce, China’s green technology market would attract more investment and estimated a market with a potential value up to $1 trillion annually. – China.org.cn

]]> 4202 2009-09-29 20:00:18 2009-09-30 03:00:18 open open duke-energy-enn-in-clean-energy-venture publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6141#comments wfw:commentRSS http://zikkir.com/business/6141/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6141 syndication_item_hash 47e2d252bf7c140278a712056941ed07 China’s forex reserves rank 1st in world http://www.ethiopianreview.com/business/4201 Wed, 30 Sep 2009 03:04:04 +0000 http://zikkir.com/business/?p=6143 China’s foreign exchange reserves rose from $1,577 billion in 1978 to $1,950 billion in 2008 to rank first in the world, said Yu Wenzhe, Chinese Ambassador in Ghana, on Tuesday.

To the same token, China’s per-capital annual income of $62.5 in 1978 reached $9,863 in the urban areas, showing an increase of over 100 percent.

Ambassador Yu Wenzhe announced this during a press briefing which was aimed at highlighting China’s significant socio-economic development for the past 60 years.

The People’s Republic of China would be 60 years on October 1, 2009 and the Chinese people and its allies are expected to celebrate the country’s 60th anniversary with pomp and pride.

The stated achievement, he noted, was due to China’s vigorous pursuance of a strategy or model that featured high speed socio-economic development.

He was happy that China has metamorphosed from agricultural country to an industrial nation with the result that the country is now ranked the third largest manufacturing country in the world.

On the strength of China’s development, Yu urged African leaders to translate the continent’s advantage in natural resources into socio-economic development.

The ambassador disclosed that in 2006, the output of 172 categories of Chinese products ranked first on the world market, adding that about 70 percent of DVDs and toys; 50 percent of telephone sets and shoes; one-third of color TVs, bags and suit cases were made in China.

To be part of Ghana’s future success, he said, China had invested more in Ghana in the fields of economic and technical assistance, which included grant and cash, human resource training among others.

Touching on China’s investment in Ghana, he said, China topped the list of countries with the highest number of registered projects in Ghana.

“Up to June 30, 2009, China had registered 387 projects in Ghana valued at $235.18 million,” he added.

“To achieve a sustainable and steady development of China-Ghana bilateral trade, both sides should adopt effective measures to balance the trade,” he stressed.

Yu said this against the backdrop that China’s export to Ghana had increased rapidly between 2002 and 2007 as against Chinese imports from Ghana, which he noted, had decreased for two consecutive years since 2005. – China.org.cn

]]> 4201 2009-09-29 20:04:04 2009-09-30 03:04:04 open open china%e2%80%99s-forex-reserves-rank-1st-in-world publish 0 0 post syndication_item_hash dcf04f8e64c192d4fb1e61aff45e046b syndication_permalink http://zikkir.com/business/6143 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6143/feed rss:comments http://zikkir.com/business/6143#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir China plans zero-tariff policy for least developed countries http://www.ethiopianreview.com/business/4250 Wed, 30 Sep 2009 03:11:00 +0000 http://zikkir.com/business/?p=6162 China plans to progressively carry out next year a zero-tariff policy on 95 percent of imports from least developed countries, the Ministry of Commerce said Wednesday.

The ministry said this move aimed to increase exports to China from these countries. But it did not elaborate which imports would enjoy the favorable policy.

The ministry also presented an outline summary of the efforts China has made or is making to assist developing countries in fields such as agriculture, food donations, education, training, clean energy, and loan reductions or exemptions for impoverished nations. – China.org.cn

]]> 4250 2009-09-29 20:11:00 2009-09-30 03:11:00 open open china-plans-zero-tariff-policy-for-least-developed-countries publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6162#comments wfw:commentRSS http://zikkir.com/business/6162/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6162 syndication_item_hash c32115c17454dddc51610ddf2ca13eef Coordination crucial to international financial reform http://www.ethiopianreview.com/business/4249 Wed, 30 Sep 2009 03:11:44 +0000 http://zikkir.com/business/?p=6164 As the worst financial crisis since the 1930s continues, a call for international financial reform has been dominating headlines for more than a year.

More obstacles, including the coordination of reforms, have begun to emerge despite the resumption of economic growth.

Charles Dallara, managing director of the Institute of International Finance (IIF), says coordination was crucial to successful international financial reforms, one of the key issues to be discussed by the Group of 20 (G20) leaders here later this week.

“It is very difficult to coordinate, and yet it is central,” Dallara told Xinhua in an interview.

ECONOMIC SITUATION CHANGES

When the G20 leaders met in Washington last November, the world financial system was on the brink of a meltdown. Five months later in London, the leaders faced an ever-deepening global recession and the real risk of its worldwide spread.

Now, another five months have passed, and the leaders are gathering in Pittsburgh for their third meeting within a year. This at a time when the world economy has resumed growth, and global financial markets remain stable.

U.S. Federal Reserve Chairman Ben Bernanke announced last week that the recession was “very likely over.”

Now, the focus of the G20 meeting is how to get out of the financial mess and return the world’s economy to sustainable growth.

OPTION: EXIT STRATEGY

As the economy recovers, G20 leaders will pay more attention to the option of an “exit strategy,” former Undersecretary of the U.S. Treasury Department Tim Adams said.

Since the outbreak of the financial crisis, the world’s major economies have carried out a series of measures to save the market, including low interest rates, nationalization of banks and the implementation of easing policies.

Emerging signs of recovery are pulling central banks and governments out of market intervention. Analysts have pointed out that governments need to make sure their exits were well-timed because the basis of the recovery was not firm, and the credit situation had not shown obvious improvement.

In a report released on Monday, the International Monetary Fund (IMF) acknowledged various exit models for public sectors. The IMF stressed that restored confidence in financial institutions and market health should be a common goal.

AGENDA FOR FINANCIAL REFORM

There is no doubt that international financial reform will be on top of the agenda at the G20 summit.

Firstly, regulatory reform is a key issue. A lack of regulation is one of the causes behind the global financial crisis. The G20 summit that started here Thursday aims to tighten regulations in order to ensure that a similar crisis does not happen again.

Higher liquidity standards, capital ratio, leverage ratios and consumer financial protection are key regulatory issues among others.

However, as some experts proposed expanded regulation to cover the entire financial system, instead of single banks, others worried that such expansion may lead to higher costs, lower creativity and systematic fragility.

Secondly, restrictions on bankers’ bonuses also draw wide attention.

From the Europeans’ perspective, the G20 should restrict bankers’ bonuses, believed to be an effective way to reduce risk. In their view, bankers’ bonuses should be linked to the long-term performance of the financial institutions they manage.

Part of bankers’ bonuses, the Europeans argue, must be deferred over an appropriate period of time and can be canceled in case of a negative development in the bank’s performance. Stock options should also be prevented from being exercised for an appropriate period of time.

On the U.S. side, the Federal Reserve and the government propose to limit bankers’ income. However, the standards of both sides are different.

Thirdly, reform of the administration of international financial institutions, such as the quota reform of the IMF, is driven mainly by the emerging economies. Developing countries believe that the IMF’s quota-based governance was mismatched with that of the world economic powers because the developing world’s proportion has been increasing dramatically.

In an interview with Xinhua, He Jianxiong, executive director representing China at the IMF, said that major irrationality in the global financial system was reflected by the lack of clout of developing countries and rising market economies. This gave too much power to the developed world.

Developing countries and rising economies’ proportion of decision-making rights rose only five percent in the past 30 years, and the imbalance had been detrimental to the IMF’s judgment, He said.

Fourthly, the dollar’s status as the world’s key reserve currency is questionable. Many economists believe that the dollar is one of the major reasons behind the unstable world financial market.

Since the U.S. government is still implementing a quantitative easing monetary policy to pull the economy out of recession, many economists are more concerned about a plunge in the value of the dollar after the crisis.Some emerging economies such as China have called for an alternative reserve currency for the dollar.

Despite the focus on international financial reform, there are voices of caution.

Jaime Caruana, general manager of the Bank for International Settlements (BIS), warned Monday that the financial sector could not afford to slip into complacency because of market rebounds after the worst global downturn in decades.

The BIS chief said that banking reform should be an evolution, not a revolution.

GLOBAL COORDINATION ESSENTIAL

As the U.S. and world economies begin to recover, some experts say the political awareness of international financial reform was reduced, and that even the G20 was no longer needed. At this moment, global coordination was essential.

True, it is hard to reform the financial system on a global basis. However, the necessity remains.

“It is challenging to get 20 different countries to agree on very complex issues. However, I think it is good to continue this discussion at this level. Maybe they don’t need to meet three times a year. But I think we should keep the political leadership in a political class,” Tim Adams told Xinhua.

Adams, now managing director of the Lindsey Group, noted that it was challenging to get different participants with different experiences and different regimes to come to the table and agree on very complex issues.

As for the IMF, any reform aimed at giving more influence to developing nations would be regarded by developed countries as a threat to their acquired interests, He believed.

Higher and broader participation of developing countries was a major point in the international financial reform, and was also undoubtedly a sticky point, He said.

The IIF said that international coordination of reforms would be essential, given the global nature of financial markets. National authorities, the IIF added, should roll back uncoordinated emergency measures that had contributed to fragmentation of the global financial system.

Despite the G20’s commitment to global coordination at the London Summit, the strengthening of the international financial system is being put at risk because governments have been introducing regulatory measures with a decidedly national orientation and without close international coordination.

“Only the G20 has the authority to mobilize coordinated action to address this challenge to the global financial system,” the IIF said. “We would urge G20 leadership in commissioning a major effort to carry this forward, and the private sector stands ready to assist in such a crucial project.”

The G20 leaders may applaud the end of the recession, but they know that hard work to reshape the financial system still lies ahead.

Undoubtedly, there are uncertainties. But one thing is certain: Political awareness of coordination will determine the future of international financial reforms. – China.org.cn

]]> 4249 2009-09-29 20:11:44 2009-09-30 03:11:44 open open coordination-crucial-to-international-financial-reform publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6164#comments wfw:commentRSS http://zikkir.com/business/6164/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6164 syndication_item_hash c749b5fa25085bb834fac522b30dc823 Innovation, key for ‘Made in China’ to out of crisis http://www.ethiopianreview.com/business/4248 Wed, 30 Sep 2009 03:12:34 +0000 http://zikkir.com/business/?p=6166 China’s foreign trade and export enterprises have encountered unprecedented pressure during the global financial crisis — but analysts say they believe innovation is the way out for the “Made in China” brand.

The Quanzhou Baofeng Shoes Company, one of China’s leading producer of slippers, is precisely the type of exporter that should be on its knees. Headquartered in Quanzhou, a coastal city in southeastern Fujian Province, Baofeng used to export 90 percent of its annual output to the United States.

The company’s exports fell about 20 percent from a year earlier in 2008 but the situation improved after the company put efforts into developing its domestic market, moving up the value chain and building its own brand, the company’s general manager, Zheng Guozhang, said.

“Innovation is the key to a company’s success,” Zheng said. In this company of 1,000 employees, more than 100 are working on research and development.

Zheng expects exports to start picking up no later than the second half of 2010.

It is a similar story in southern Guangdong Province, the world’s largest base of toy production and exports. Customs figures show products of self-owned, independent brands have achieved better and faster growth than those without independent brands.

Guangdong’s toy exports from self-owned brands expanded from January’s 48 million U.S. dollars to 100 million U.S. dollars in July, up 41.4 percent compared with June.

While Baofeng might be surviving rather than thriving, its performance is encouraging, considering wider pain across China’s export sector.

Exports, one of the three engines that have fueled China’s fast growth in recent times, fell 22.2 percent year on year in the first eight months this year. The other two engines are investment and consumption.

Some export companies had to close or shut down production because of falling orders, which caused millions of job losses.

Analysts believe the global financial crisis and its aftermath have revealed long-existing problems in China’s export sector — lack of independent brands and technology innovation. However, the crisis also offered an opportunity for transformation.

The opportunity is costs for innovation are low, said Lin Jiang, head of the Public Finance and Taxation Department of Lingnan College of the Sun Yat-sen University.

China’s export companies are facing stern challenges both at home and abroad and these would persist into the post-crisis period, said Zhang Yansheng, director of the Institute of Foreign Trade of the National Development and Reform Commission, China’s top economic planner.

Exporters had to suffer falling orders and increasing protectionism from outside while internally they had to go through painful transformation, Zhang said.

To survive the challenges, domestic enterprises must transform from the traditional labor-intensive and capital-intensive production methods to technology-intensive, and move from imitation to innovation, he said.

“By using today’s difficult economic environment as an opportunity to upgrade research and development organizations, focus, practices, and management will help companies not only to cut costs but also to raise productivity and speed up marketing — while positioning themselves for even greater success in the future,” according to a report from McKinsey and Company.

However, entrepreneurs and economists are not the only people to have realized the importance of innovation,. Chinese officialdom has repeatedly hailed innovation.

“To overcome the severe international financial crisis, we must rely more on science and technology to make breakthroughs and boost development,” Premier Wen Jiabao said when delivering an opening speech at the Summer Davos on Sept. 10 in northeastern China’s Dalian.

“We should see scientific and technological innovation as an important pillar and make greater efforts to develop new industries of strategic importance,” he said. “We will make China a country of innovation.” – China.org.cn

]]> 4248 2009-09-29 20:12:34 2009-09-30 03:12:34 open open innovation-key-for-%e2%80%98made-in-china%e2%80%99-to-out-of-crisis publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6166#comments wfw:commentRSS http://zikkir.com/business/6166/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6166 syndication_item_hash 221db2ad80787f4f88c4cf6175025f92 Wuliangye suspended from trading for rule violation http://www.ethiopianreview.com/business/4247 Wed, 30 Sep 2009 03:17:15 +0000 http://zikkir.com/business/?p=6168 Wuliangye Yibin Co., one of China’s top liquor makers, was temporarily suspended from trading Thursday because it had violated disclosure rules, says a statement on the web site of the Shenzhen Stock Exchange Thursday.

The liquor maker did not properly disclose securities investment losses and was found to have discrepancies in its reported core business revenue, the China Securities Regulatory Commission (CSRC) said Wednesday.

The company lost 55 million yuan (8.05 million U.S. dollars) in investment in 2007 and failed to report it.

In 2000, the company used 130 million yuan for securities investment. By the end of 2005, it had shrank to about 87.62 million yuan. The securities firm went bankrupt in 2007 and Wuliangye received 4.59 million yuan as compensation. However, the company did not accrue the impairment provision in its reports between 2006 and 2008.

The company reported a core business revenue of 8.25 billion yuan in its annual performance report for 2007, compared with the actual 7.25 billion yuan, the CSRC said.

The CSRC said the investigation into the case started since July 28 and was still proceeding. The company’s shares would resume trading after the company issued a “relevant” announcement, the Shenzhen Stock Exchange said.

The share price of the company fell 4 percent on Wednesday to close at 21.60 yuan. – China.org.cn

]]> 4247 2009-09-29 20:17:15 2009-09-30 03:17:15 open open wuliangye-suspended-from-trading-for-rule-violation publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6168#comments wfw:commentRSS http://zikkir.com/business/6168/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6168 syndication_item_hash 7f863837762904f4aff0951d02adf8ae Biz hub set to break ground in 2010 http://www.ethiopianreview.com/business/4246 Wed, 30 Sep 2009 03:18:00 +0000 http://zikkir.com/business/?p=6170 Shanghai will start construction of its Hongqiao Business Park next year in an effort to create a major new engine for economic growth.

“Building the business park is a strategic move for Shanghai to become a global trade center by 2020 and a gateway to the Yangtze River Delta region for traders and investors,” Xue Quanrong, deputy director of the Shanghai Hongqiao Business Park Administrative Commission, told a news conference yesterday. “The park has strengths in its location, convenient transportation and urban planning.”

The local government has decided the park will have a 26.3-square-kilometer central zone bounded by the A20 Highway on the east, Huaxiang Road on the west and the A9 Highway and Beidi Road Highway on the southern and northern edges. The central area will be anchored by the nearly completed Hongqiao transport hub complex that’s connected to the Hongqiao Airport. Changning and Minhang districts will share the future business center, Xue said.

The distance between the park and major cities in the Yangtze River Delta region is no more than 300 kilometers, while modern air, road and rail links at the transportation hub put the park within easy reach.

Xue said the new zone will become a magnet for modern service industries, including logistics and exhibitions. It will also become home to the headquarters of many domestic and overseas businesses.

Xue said the commission will roll out favorable policies to attract companies. The incentives are still under study.

The new zone will also benefit from urban planning best practices and avoid becoming a void on nights and weekends.

“We will allocate a 2.1-square-kilometer area for building residential properties, along with other cultural and entertainment facilities, making the park a bustling area integrating work and life,” said Xue.

Initial construction will start next year on a 1.4-square-kilometer core commercial area adjacent to the transport hub and the airport. It will feature offices, hotels, entertainment facilities, shopping malls and exhibition sites and should be finished in two years.

Xue said the output of the core business area may exceed 10 billion yuan (US$1.46 billion) by 2015 and 15 billion yuan by 2020.

Media reports said earlier that the total output of the business park may eventually catch up with the Pudong New Area, which totaled 310 billion yuan last year.

A government administrative regulation is currently being drafted to guide future development of the business park. Its administrative commission will eventually comprise 30 government officials. – China.org.cn

]]> 4246 2009-09-29 20:18:00 2009-09-30 03:18:00 open open biz-hub-set-to-break-ground-in-2010 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6170#comments wfw:commentRSS http://zikkir.com/business/6170/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6170 syndication_item_hash 9485e0982d89fc826dc2c99bff8ac91d Big surge in air traffic forecast in next two decades http://www.ethiopianreview.com/business/4245 Wed, 30 Sep 2009 03:18:36 +0000 http://zikkir.com/business/?p=6172 Despite the global downturn, the H1N1 flu epidemic and a fast-developing high-speed rail network, China’s domestic airline traffic is expected to expand fast, with an annual growth rate of 8.2 percent in the next 20 years, the Aviation Industry Corporation of China (AVIC) said.

The latest annual forecast released yesterday showed that China would need 3,796 new airplanes over the next two decades, including 2,922 jumbo jets and 874 regional jets.

The country’s passenger fleet will nearly quadruple to 4,233 by 2028, said Liao Quanwang, researcher and executive vice-president of AVIC Development Research Center.

The single-aisle planes with 150 seats, such as the B737, A320 and the future homemade C919, will still be the largest category, but its percentage in the whole fleet will decline from the current 67 percent to some 39 percent by 2028, he said.

“As some air routes already run flights every 30 minutes to handle the huge passenger traffic, we expect more 200-seat planes will be used on these routes to expand transport capacity,” he said.

But still, Wu Guanghui, chief designer of the C919 program and deputy general manager of the Shanghai-based Commercial Aviation Corporation , estimated that some 2,000 C919 planes would be needed in a period of 20 years after its take-off in 2016.

The estimation is based on a forecast that China will need 2,600 single-aisle jetliners in next 20 years, he said.

AVIC also forecast that China’s cargo fleet will expand to 583 freighters by 2028, up from the current fleet of 68 freighters. – China.org.cn

]]> 4245 2009-09-29 20:18:36 2009-09-30 03:18:36 open open big-surge-in-air-traffic-forecast-in-next-two-decades publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6172#comments wfw:commentRSS http://zikkir.com/business/6172/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6172 syndication_item_hash 6b6d4602a70479323de9218ff0c5ac76 Shanghai copper prices fall http://www.ethiopianreview.com/business/4244 Wed, 30 Sep 2009 03:19:21 +0000 http://zikkir.com/business/?p=6174 Copper drifted lower yesterday as investors looked past a weaker US dollar, worried that scant demand outside China would stall a run-up that has more than doubled the metal’s price this year.

The greenback’s slump to one-year lows against the euro, which makes commodities cheaper for holders of other currencies, helped copper post modest gains earlier in the session, before demand concerns weighed on sentiment.

“We are seeing early signs of demand picking up in the world outside China, but I won’t say that there is conclusive evidence that this is happening at a pace that is significant,” said Yingxi Yu, analyst at Barclays Capital.

“Our view is copper is well supported, but to drive the next leg of the rally, it’s going to take much more than China and the dollar.”

The dollar slid to a one-year low against a basket of currencies while Asian stocks touched a 13-month top ahead of the US Federal Reserve’s policy decision later in the day, with its post-meeting statement likely to take note of an improving economy.

Three-month copper on the London Metal Exchange MCU3 fell $78 to $6,192 a ton in early trade. LME copper rose as much as 3 percent on Tuesday before cutting gains to close at $6,270 a ton, up 1.3 percent.

Shanghai’s benchmark third month copper SCFc3 dropped 430 yuan to end at 48,220 yuan a ton.

China’s apparent copper demand fell 13.9 percent in August from July, following a slide in imports by the world’s top consumer of many base metals.

Analysts expected the drop in Chinese copper imports after record purchases in the first half, but had anticipated demand elsewhere would pick up fast enough to offset the slack.

LME copper stocks have climbed around 30 percent from early July to 331,775 tons on Tuesday, while inventories of the industrial metal surged to more than five-year highs at 104,248 tons in Shanghai last week.

Yu said Chinese copper imports were likely to fall further from August’s levels. “That’s potentially a downside risk to prices,” she said. – China.org.cn

]]> 4244 2009-09-29 20:19:21 2009-09-30 03:19:21 open open shanghai-copper-prices-fall publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6174#comments wfw:commentRSS http://zikkir.com/business/6174/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6174 syndication_item_hash b8d443bc52415f50301c50b2e62d57d2 AVIC in partnership with Safran, GE http://www.ethiopianreview.com/business/4243 Wed, 30 Sep 2009 03:20:44 +0000 http://zikkir.com/business/?p=6176 1
Visitors at the AVIC booth during the Aviation Expo/China 2009 in Beijing.

Aviation Industry Corporation of China (AVIC), China’s top aircraft manufacturer, announced cooperation plans with Safran and GE yesterday, aimed chiefly at boosting the country’s homemade jumbo jet program.

The C919, China’s largest domestically manufactured jetliner that is expected to take off in 2016, will source parts and components globally, but foreign suppliers are encouraged to enter into partnerships with Chinese manufacturers, Wu Guanghui, chief designer and deputy general manager of the Shanghai-based Commercial Aviation Corporation (COMAC), which is producing the jet, said yesterday.

“Priority will go to products designed and manufactured by foreign suppliers and their partners in China,” he said.

AVIC and France-based Safran Group yesterday signed a framework agreement during the ongoing Aviation Expo China 2009 in Beijing to extend their partnership. The expo started yesterday and ends Saturday.

The agreement includes establishing new facilities in China based on both sides’ existing assets, and cooperating on all aspects of a production line, from design, production, assembly, to support.

The short-term targets focus on producing landing and braking systems and nacelles (engine compartment) for the C919, according to a news release by Safran.

The subsidiaries of Safran and AVIC will together submit a joint proposal to COMAC for landing and braking systems on the C919, it said.

Meanwhile, AVIC, GE and Safran signed a memorandum of understanding (MOU) yesterday on setting up a joint venture that designs and manufactures engine nacelles and components for a full range of aircraft applications including the home-made jumbo jet C919.

The new joint venture is between AVIC Aircraft Corporation and Nexcelle – a nacelle joint venture company created by GE’s Middle River Aircraft Systems and Aircelle, a Safran group company.

AVIC Aircraft and Nexcelle will have equal stakes in the venture.

Both the dollar value and the location of the undertaking have not been disclosed.

Lorraine Bolsinger, president and CEO of GE Aviation Systems, told China Daily that the first target of the new joint venture would be the C919 project.

In the long run, “we plan to have the joint venture as a worldwide supplier to pursue new platforms to go beyond C919,” she said.

The engine nacelle technology is one of the fundamental elements in an aircraft’s performance, efficiency and environmental footprint.

Foreign aviation suppliers are competing for business opportunities arising from China’s plans to build a jumbo jet.

According to the COMAC website reports, a number of major global aviation suppliers have paid intensive visits to COMAC, after the latter issued the invitation for tender on July 10 for engines and airborne equipment to be used on the C919.

Last month, Goodrich Corporation and Xi’an Aircraft International Corporation (XAIC) under AVIC also signed agreements to form two joint-venture companies that will be involved in the manufacture of landing gear and nacelle components, in order to participate in the C919 project. – China.org.cn

]]> 4243 2009-09-29 20:20:44 2009-09-30 03:20:44 open open avic-in-partnership-with-safran-ge publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6176#comments wfw:commentRSS http://zikkir.com/business/6176/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6176 syndication_item_hash 9f9b3e584793a629b802ee7117913c9f Gome sells bonds to raise funds http://www.ethiopianreview.com/business/4242 Wed, 30 Sep 2009 03:21:56 +0000 http://zikkir.com/business/?p=6178 Gome Electrical Appliances Holdings Ltd, China’s second-biggest electronics retailer by market value, sold 2.05 billion yuan of convertible bonds to help refinance debt and boost capital.

The five-year, 3-percent notes were priced to yield 4.14 percent and can be converted into shares at HK$2.838, a 29-percent premium to Tuesday’s closing price, according to a term sheet e-mailed by sale manager JPMorgan Chase & Co yesterday.

Gome has 4.6 billion yuan of zero-coupon convertible bonds due May 2014 that bondholders can ask the company to redeem in May next year, according to data compiled by Bloomberg. The company raised 1.59 billion yuan in June from a sale of 5-percent convertible notes.

“This may give them spare cash on hand which they can use and take the chance to expand next year,” Ashley Cheung, an analyst at BOCI Research Ltd in Hong Kong, said yesterday. “I think they don’t even need it, so now they’re financially in an even better position.”

The retailer had 779 stores as of June 30, 9 percent less than a year ago. The network has 1,212 outlets including those owned by the closely held Gome Group, controlled by the family of billionaire founder Huang Guangyu.

Gome fell 3.6 percent, the most in a week, to close at HK$2.12 in Hong Kong trading. The company’s market value has more than doubled since it ended a seven-month trading halt on June 23, compared with a 20 percent gain for the Hang Seng Index. – China.org.cn

]]> 4242 2009-09-29 20:21:56 2009-09-30 03:21:56 open open gome-sells-bonds-to-raise-funds publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6178#comments wfw:commentRSS http://zikkir.com/business/6178/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6178 syndication_item_hash 172e116974e859e5049b35f327415212 Ford to beef up China presence with third plant http://www.ethiopianreview.com/business/4241 Wed, 30 Sep 2009 03:22:58 +0000 http://zikkir.com/business/?p=6180 1
The new factory will produce high-end sedans and sport-utility vehicles.

Ford Motor Co is boosting its bet on China with a new factory and models as it tries to catch General Motors Co.

Chief Executive Officer Alan Mulally is traveling to China on Sept 25 to break ground on Ford’s third plant in the country, two people familiar with the plans said. He was expected to announce “news about Ford’s continued expansion” of its small-car lineup in India yesterday, spokesman Ray Day said in an e-mail.

“China had been an afterthought for previous management at Ford, but Mulally realizes how important it is,” said Brian Johnson, a Chicago-based Barclays Capital analyst who has a “neutral” rating on Ford. “This is more of a five-year move than something that will move the dial this year or next.”

Ford, the second-largest US automaker, ranks 12th in China with 2.8 percent of sales, according to auto researcher JD Power & Associates. GM, which emerged from a US government-sponsored bankruptcy July 10, outsells Dearborn, Michigan-based Ford by 3-to-1 in the country, building twice as many vehicles.

The new factory in Chongqing, southwest China, will produce high-end sedans and sport-utility vehicles, Xinhua news service reported. It will have annual capacity of as much as 300,000 units.

Ford already has a plant in Chongqing with Chinese partner Chongqing Changan Automobile Co, and had a 30-percent rise in sales in the first eight months of this year, helped by new models and the government’s stimulus spending, JD Power said. The country’s overall vehicle sales may rise 28 percent this year, according to the government, likely passing the US as the world’s largest auto market.

The high-end sedan will give Ford a car to compete against GM’s Buick models, while the sport-utility vehicle will capitalize on demand for that category in China, said Johnson. Ford spokeswoman Whitney Small declined to confirm the new models or the new plant.

“It might seem counterintuitive that as the rest of the global auto market is downsizing Ford is upsizing in China,” Johnson said. “But it makes sense because there is more room to grow in the high-end of the Chinese market.”

The worst recession following World War II helped drive GM and Auburn Hills, Michigan-based Chrysler LLC into government-sponsored bankruptcies this year as auto demand fell. China has been a bright spot for GM, with its sales in the country rising 24 percent this year through July, according to JD Power.

Chrysler started producing Jeeps in China in the 1980s, and GM began selling Buicks in 1998 and Chevrolets in 2004. Ford didn’t sell passenger vehicles in China until this decade, JD Power said. – China.org.cn

]]> 4241 2009-09-29 20:22:58 2009-09-30 03:22:58 open open ford-to-beef-up-china-presence-with-third-plant publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6180#comments wfw:commentRSS http://zikkir.com/business/6180/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6180 syndication_item_hash 69e59d6e7d849a39c35a346b0ba68a8d Geely rallies post Goldman investment http://www.ethiopianreview.com/business/4240 Wed, 30 Sep 2009 03:23:37 +0000 http://zikkir.com/business/?p=6182 Goldman Sachs’ HK$2.59 billion investment in Geely Automobile Holdings, the Hong Kong-listed arm of China’s biggest privately owned carmaker Geely Holding Group Co, boosted the latter’s shares by 18.99 percent yesterday on the Hong Kong Stock Exchange, its highest since 2000.

Geely Auto said in a statement released yesterday that it would issue HK$1.897 billion worth of 3 percent convertible bonds due 2014, and 299.53 million call warrants valued at HK$2.3 per share to GS Capital Partners VI Fund under Goldman Sachs Group Inc.

Once the deal is done, Goldman Sachs would hold 17.8 percent stake in Geely, while its Chairman Li Shufu would hold 43.75 percent of the company, dropping from the earlier 51.54 percent.

Geely’s shares closed at HK$2.13 in Hong Kong yesterday, after being suspended from trading for the past week.

Geely Auto, whose parent is eyeing Ford’s Swedish brand Volvo, also said in the statement that it would use the fund for capital expenditure, working capital and potential acquisitions.

Earlier this month, Gui Shengyue, executive president of Geely Auto, had confirmed that its parent company Geely Group might acquire Volvo in alliance with financial institutions.

However, the investment is far lower than Volvo’s price of over $2 billion.

This is the Hangzhou-based carmaker’s second money-raising move for acquisitions this year.

In May, Geely’s parent raised about HK$750 million through the sale of 800 million existing Geely Auto shares at HK$1.35 apiece to more than six investors and then buying 570 million new ones at the same price.

The company said it would use part of money from the share sale to fund its successful acquisition to Australian automatic transmission supplier Drivetrain Systems International. – China.org.cn

]]> 4240 2009-09-29 20:23:37 2009-09-30 03:23:37 open open geely-rallies-post-goldman-investment publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6182#comments wfw:commentRSS http://zikkir.com/business/6182/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6182 syndication_item_hash f82059e3c6e93ce249bc53e8267d2fd4 Bumpy road ahead for delivery firms http://www.ethiopianreview.com/business/4239 Wed, 30 Sep 2009 03:24:44 +0000 http://zikkir.com/business/?p=6184 1
The regulations will affect small delivery companies as they would find it difficult to meet the requirements.

Over 80 percent of the express delivery companies in China are likely to be affected by the impending licensing system that aims to regulate service approach, with some even indicating that they may quit the business altogether.

The new regulation, issued by the State Post Bureau, will come into effect on October 1. It compels businesses that operate within a province or municipality to have 500,000 yuan as registered capital. If they offer a nationwide delivery service the sum required will be 1 million yuan. Firms that offer international deliveries will need 2 million yuan.

According to data released by industrial and commercial bureaus nationwide, the number of registered Chinese private delivery enterprises totaled more than 5,000, occupying 80 percent of the express market, and employing more than 500,000 people.

“We allow those not qualified a buffer period of one year to raise the money and improve other conditions necessary before their operation can be approved,” said An Ding, head of market supervision at the State Post Bureau of China.

Apart from the registered capital, companies have to supply details of their operation’s network, delivery capability, facilities, information network and staff qualification.

An said small companies that deliver within a province or municipality would be hardest hit, while for those operating further afield it would be “a piece of cake”.

Officials say they want to ensure the safety of deliveries and improve the quality of service by edging the weakest companies out of the market.

“The rope should have been tightened earlier,” said Cheng Xianlin, 27, a delivery worker in Beijing with three years of experience.

“The industry is very messy now and price wars initiated by some small scale companies have been damaging the whole industry as well as the service to consumers.”

Shao Zhonglin, deputy secretary-general of the China Express Association, welcomed the licensing system. “It is like opening hospitals because the mail and packages matter a lot to ordinary consumers,” he said “The government should set up reasonable entry criteria to guarantee players in the industry have enough capability to provide sound services to the public.”

In 2008, www.315ts.net, an official website specializing in addressing consumer issues, received 10,261 complaints about delivery companies. The number has risen 47.5 percent year-on-year. Almost 90 percent of the problems concerned private firms. Poor service, delayed deliveries, missing and destroyed package made up almost 81 percent of the complaints.

Li Cheng, a researcher at a state-owned academic institution, witnessed the “miserable” experience of his colleague just a few days ago. The delivery company badly packed a jar of honey with clothes and books. The jar broke, spoiling the other items.

Li said he didn’t think imposing minimum requirements would solve the problem effectively. “The industry needs detailed operating standards, as well as strong supervision from the government,” he said. “Raising the bar for private enterprises is not helpful for the development of the industry in the long run. Don’t forget it is customers who have to pay for the bill finally.”

Gong Chao, general manager of a Beijing-based express delivery company, is one of those worried about the impact of the regulations. His company doesn’t have enough money to register. That in turn has put his job and that of 100 others in peril. “Maybe I could raise the money by whatever means, but that depends on whether the regulation will be implemented in a strong and tough way. I will wait and see,” he said.

Zhou Jiyuan, general manager of Jiexianfeng Express, said he was hoping to dodge the regulation by registering the company as a logistics firm rather than as an express delivery service to avoid the additional costs. He said he was unsure if he would succeed. – China.org.cn

]]> 4239 2009-09-29 20:24:44 2009-09-30 03:24:44 open open bumpy-road-ahead-for-delivery-firms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6184#comments wfw:commentRSS http://zikkir.com/business/6184/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6184 syndication_item_hash e2103f0722327599303666efe64bca05 TNT sees little impact from postal law changes http://www.ethiopianreview.com/business/4238 Wed, 30 Sep 2009 03:25:33 +0000 http://zikkir.com/business/?p=6186 China’s new postal law, which comes into effect from Oct 1, will have a negligible impact on TNT’s mail and express delivery business in China, a company spokesman said, adding that the express delivery service supplier will continue its commitment to investing and growing in the country.

The company has launched a new dedicated B747-400 extended range freight service between Hong Kong and Liege in Belgium, TNT’s European air hub.

TNT said the non-stop cargo flights, three times a week from Hong Kong and probably four times a week in the foreseeable future, will enable the company to offer faster transit times, greater control and visibility over shipments to Asia, the Pearl River Delta region in South China, and Europe.

“I don’t think the new postal law will influence much of our business in China, as our business primarily focuses on international mail and express delivery service,” said Michael Drake, regional managing director for TNT North Asia.

China’s new postal law gives exclusivity to State-owned post offices for intra-city express delivery of items under 50 g and intercity delivery of items under 100 g, which means that private mail services may lose 80 percent of the express delivery market.

“The new freighter service will definitely improve TNT’s business network in China,” said Drake.

According to Drake, the east and south of China are the nation’s two key regions that have the most freight that relies on express delivery by air. The new service supplements a similar service between Shanghai and Liege, which was launched in early 2007, while further enhancing the connectivity between TNT’s leading express networks in the two regions.

“With its geographical and economic proximity to the Pearl River Delta, Hong Kong is a natural choice as a hub for serving customers in the south of China. It will add to TNT’s other Asian international hubs: Singapore, Shanghai and Beijing,” he said. “And with our integrated air and road delivery capabilities in China and Europe, we are well-placed to capitalize on the strong trading links between the two regions,” he said.

“International express delivery is recovering amid the challenging economic situation globally. The investment in the new freighter service is well justified.”

Drake said TNT would continue to invest in China but has not set any investment plan. The acquisition of Hoau in 2007 has also helped TNT.

“In fact, we are already seeing encouraging results from our investments in Asia. TNT is the leader in Sino-Europe express services in China and we are excited about creating a leadership position in the Chinese domestic road arena through our wholly-owned subsidiary TNT-Hoau,” added James McCormac, regional managing director of TNT Asia Pacific.

According to McCormac, the initial flights on the Hong Kong-Liege service will fly at full capacity. – China.org.cn

]]> 4238 2009-09-29 20:25:33 2009-09-30 03:25:33 open open tnt-sees-little-impact-from-postal-law-changes publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6186#comments wfw:commentRSS http://zikkir.com/business/6186/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6186 syndication_item_hash b8e90c3a412548f262d9aefeb3ae5de4 China denies placing restrictions on EU pork imports http://www.ethiopianreview.com/business/4237 Wed, 30 Sep 2009 03:26:15 +0000 http://zikkir.com/business/?p=6188 China has never placed any restriction on pork imports from the European Union (EU), and its demand for health certificate from the EU imported pork was needed to prevent the spread of A/H1N1 flu, said Yu Taiwei, head of China’s quality watchdog’s food safety export and import bureau, on Wednesday.

General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) launched on Sept. 18 a measure requiring an additional testing on all pork meat from five countries including Denmark, France, Italy and Spain.

The EU’s health Commissioner Androulla Vassiliou was reported Wednesday as having interpreted China’s requirement for strengthening inspection on A/H1N1 virus as “being protectionism”.

“We still allow these countries to export pork to China, but only ask for a more intensified inspection,” said Yu.

Every country should guarantee the quality securities of its export products, which is its responsibility, according to Yu.

China is a major consumer of meat products. It imported 1.84 million tonnes last year. The country has also become the world’s leading meat producer, whose pork output stood at 44.59 million tonnes in 2008. – China.org.cn

]]> 4237 2009-09-29 20:26:15 2009-09-30 03:26:15 open open china-denies-placing-restrictions-on-eu-pork-imports publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6188#comments wfw:commentRSS http://zikkir.com/business/6188/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6188 syndication_item_hash 1ff68a473af760c38a1e1e738f100190 Dream HK debut for Sinopharm http://www.ethiopianreview.com/business/4236 Wed, 30 Sep 2009 03:33:45 +0000 http://zikkir.com/business/?p=6190 Sinopharm Group Co, China’s biggest drug distributor, jumped 16 percent on its first day of trading in Hong Kong.

The benchmark Hang Seng Index fell by 0.5 percent. The company raised the maximum HK$8.73 billion in an initial public offering after investors in the city applied for almost 600 times the stock available to them.

The shares outperformed the median 11.8 percent first-day advance of 22 other IPOs in Hong Kong this year, after selling stock at 25 times forecast earnings, according to data compiled by Bloomberg. Mainland companies listing in Hong Kong raised HK$55.2 billion in IPOs this year.

“It is a high quality company with a very large base and high growth,” said Vicky Chen, a fund manager in Hong Kong at Martin Currie Investment Management Ltd, which bought stock in the IPO. “That’s why everybody wants to participate in this IPO,” Chen said in an interview yesterday.

Managing director Fu Mingzhong expects to benefit from China’s 850-billion-yuan health reform plan to make drugs and services available to more people. The push is part of an effort to spur domestic consumption in the world’s third-biggest economy and reduce its reliance on exports.

“We think in general the recent Chinese healthcare reforms are a positive to the whole sector,” Chen said. “We are interested in companies that are consolidators rather than acquisition targets.”

Sinopharm was founded in 1998 and has been owned by China National Pharmaceutical Group Corp. Government-owned China National will retain a controlling stake in Sinopharm after the IPO, according to the company’s global offering.

Sinopharm forecast in the offering that net income would climb 43 percent to at least 840 million yuan this year. Profit surged 54 percent to 585.7 million yuan in 2008, while revenue gained 23 percent to 38.2 billion yuan.

The IPO valued Sinopharm at 25 times estimated 2010 profit, almost double the price-to-earnings ratio for McKesson Corp, the largest US drug seller. That’s too high for Clive Zhang, director of Hong Kong-based Vision Finance Asset Management Ltd, the best-performing long-short equity fund in the past 12 months, who said he hasn’t bought the stock.

“We don’t like this rich valuation, but we like the fundamentals,” Zhang said, adding he’ll consider buying the stock if the price falls below 20 times earnings.

Sinopharm distributes more than 22,000 pharmaceutical and health-care products in China, including 46 of the world’s 50 bestsellers, it said, citing data from IMS Health Inc. Its products include cough syrups, anti-cancer drugs and herbal medications, according to its website.

More than 9,500 companies compete in the Chinese pharmaceutical distribution market, Sinopharm said. The biggest 10 accounted for about 35 percent of the market in 2008, including 10.8 percent for Sinopharm, the company said, citing the China Association of Pharmaceutical Commerce.

Its largest competitors are Shanghai Pharmaceutical Co, with a 4.8-percent market share, and JoinTown Group Co, with 4 percent, the company said, citing the association. – China.org.cn

]]> 4236 2009-09-29 20:33:45 2009-09-30 03:33:45 open open dream-hk-debut-for-sinopharm publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6190#comments wfw:commentRSS http://zikkir.com/business/6190/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6190 syndication_item_hash 050104b709f8fd4ac2c9635248886207 Equities decline on recovery concerns http://www.ethiopianreview.com/business/4235 Wed, 30 Sep 2009 03:34:34 +0000 http://zikkir.com/business/?p=6192 Chinese stocks dropped for a second day, dragging the Shanghai Composite Index to a three-week low, as falling steel prices and transport rates spurred concerns about the country’s economic recovery.

Tangshan Iron & Steel Co retreated 3.9 percent after its parent cut prices of reinforcing bars used in buildings for a second month. China Cosco Holdings Co fell 3 percent as a measure of shipping costs for commodities declined. PetroChina Co, the nation’s biggest oil company, lost 1.7 percent after crude slipped.

“Judging from falling product prices, the recovery doesn’t seem to be very solid and the outlook is still clouded by uncertainty,” said Yan Ji, who helps oversee about $1.2 billion at HSBC Jintrust Fund Management Co in Shanghai.

The benchmark index fell 54.83 points, or 1.9 percent, to 2,842.72 at close, adding to Tuesday’s 2.3-percent drop and its lowest close since Sept 2. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, slid 2.3 percent to 3,060.07.

The Shanghai gauge has lost 18 percent since this year’s peak on Aug 4 on concerns a plunge in new lending will derail the economic rebound and a flood of share sales will draw funds away from existing equities.

The decline ended a 91-percent rally this year that was driven by optimism the government’s $586-billion stimulus package and more than 1 trillion of new loans would guarantee the economy reached the government’s 8 percent annual growth target. Stocks on the index trade at 31.44 times reported earnings, compared with last year’s low of 12.87 times, Bloomberg data shows.

The Baltic Dry Index, which tracks transport costs on international trade routes, fell on Tuesday to its lowest level in more than four months after data showed Chinese demand for coal and iron ore to make steel is tumbling.

China Cosco retreated 3 percent to 12.62 yuan. China Shipping Development Co, a unit of China’s second-biggest sea-cargo group, fell 2.6 percent to 12.10 yuan. Cosco Shipping Co, a unit of the largest, slid 4.2 percent to 9.74 yuan.

The country’s iron-ore imports declined 14 percent in August from July and coal imports slid 15 percent, a second consecutive monthly decline, according to customs data.

An 11-percent rebound on the Shanghai Composite this month through Sept 18 lured investors to open more accounts to trade stocks for the first time in seven weeks. Individual investors opened 345,844 accounts last week, data from the nation’s clearing house showed yesterday.

The figure is less than half the 700,000 registered in the last week of July, when investors were rushing to buy equities following the end of a nine-month ban on initial public offerings and a rebound in economic growth. – China.org.cn

]]> 4235 2009-09-29 20:34:34 2009-09-30 03:34:34 open open equities-decline-on-recovery-concerns publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6192#comments wfw:commentRSS http://zikkir.com/business/6192/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6192 syndication_item_hash c9115ae2b638f6ff0c231b7bc134fa98 China fleshes out support policy for SMEs http://www.ethiopianreview.com/business/4234 Wed, 30 Sep 2009 03:35:53 +0000 http://zikkir.com/business/?p=6194 China’s State Council, the Cabinet, issued Tuesday a document to strengthen support for the development of the country’s small-and medium-sized enterprises (SMEs).

The government will deepen reforms in the country’s monopoly industries,lowering the market access threshold for the SMEs and creating a more open and fair competition environment for SMEs, said the document.

According to the document, the government will optimize its procurement mechanism, raising the purchase proportion of commodities, engineering and services from the SMEs.

The government will grant a one-year reprieve on social security fund to the SMEs in operational difficulty amid the global financial crisis, in a bid to reduce financial burdens and protect the interests of the SMEs.

It will expand channels for the SMEs to raise capital through encouraging banks to lend more to the SMEs, stepping up making policies to guide private capital to tap into the country’s financial system.

The government will increase tax breaks to the small firms with an annual taxable income below 30,000 yuan (4392.4 U.S. dollars) from Jan. 1 to Dec. 31 of 2010.

According to the document, the government will also encourage the SMEs to improve their technological innovation capacities, enhance the product quality, and promote development in energy conservation and clean production.

In China, SMEs refer to enterprises where staff numbers are less than 2,000, annual revenues are under 300 million yuan, or with total assets under 400 million yuan.

The move followed a framework announced by the government in August to shore up the SMEs hit by the global economic downturn.

The SMEs have long had difficulty in fund raising and are seeing declining profits due to weak market demand, Industry and Information Technology Minister Li Yizhong said at the opening ceremony of the 6th China International Small and Medium Enterprises Fair on Tuesday.

“We should take more positive and effective measures to help the SMEs ride out the crisis,” he said in Guangzhou, capital of south China’s Guangdong Province.

Shen Cai, a small trader, welcomed the new policy.

“In 2010, our firm may only have to pay half of the tax as before,” Shen said in excitement in Guangzhou. “This is a real support to the small businesses struggling in the financial crisis.”

Li said the central government will earmark 9.5 billion yuan (1.4 billion U.S. dollars) in 2009, nearly doubling the 4.9 billion yuan last year, to help the SMEs innovate technology and explore market. – China.org.cn

]]> 4234 2009-09-29 20:35:53 2009-09-30 03:35:53 open open china-fleshes-out-support-policy-for-smes publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6194#comments wfw:commentRSS http://zikkir.com/business/6194/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6194 syndication_item_hash 45da29343823398191cb55885186e454 CLP Power nuclear electricity supply contract to extend 20 years http://www.ethiopianreview.com/business/4233 Wed, 30 Sep 2009 03:36:30 +0000 http://zikkir.com/business/?p=6196 Hong Kong’s Executive Council on Tuesday approved CLP Power Hong Kong Limited extending the contract for supply of nuclear electricity from Daya Bay Nuclear Power Station for another term of 20 years from May 7, 2014, to May 6, 2034, according to the local government website.

CLP Power has currently contracted for 70 percent of the electricity output of Daya Bay for supply to Hong Kong which accounts for about one-third of its local demand. The term of the supply contract will expire on May 6, 2014.

Hong Kong’s Secretary for the Environment Edward Yau said a reliable, safe and efficient electricity supply that can adequately cater for the demand for electricity is essential for the overall economic development of the city.

CLP Power’s extension of the contract for electricity supply from Daya Bay provides an assurance of electricity supply at reasonable and affordable prices for Hong Kong consumers, and also a continued supply of cleaner electricity to Hong Kong, which will help alleviate air pollution and greenhouse gas emission locally, he added.

By a Memorandum of Understanding on Energy Co-operation (MOU) signed between the National Energy Administration of the Central People’s Government and the Hong Kong Special Administrative Region Government on Aug. 28 last year, the two sides indicated support for the current supply of nuclear electricity to be extended for a further term of 20 years upon expiry in May 2014.

The MOU envisages that the supply quantity will not be less than the current level in principle while pricing will be agreed on commercial principles among the relevant enterprises. – China.org.cn

]]> 4233 2009-09-29 20:36:30 2009-09-30 03:36:30 open open clp-power-nuclear-electricity-supply-contract-to-extend-20-years publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6196#comments wfw:commentRSS http://zikkir.com/business/6196/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6196 syndication_item_hash b14cbe4dfbe508f48d2075e68cc4cb10 Bank bullish on growing recovery http://www.ethiopianreview.com/business/4232 Wed, 30 Sep 2009 03:37:09 +0000 http://zikkir.com/business/?p=6198 A surge in bank lending and fixed asset investment has strengthened economists’ faith in China’s recovery and brought the target of 8 percent growth within reach for the world’s third-largest economy.

In its Asian Development Outlook 2009 Update report yesterday, the Asian Development Bank (ADB) raised its forecast for China’s economic growth this year to 8.2 percent from the 7 percent it forecast in March.

The Manila-based multilateral finance organization added that China’s economy will likely grow by 8.9 percent next year if Beijing maintains its stimulus spending.

“The massive fiscal stimulus announced last year and the aggressive monetary easing in 2009 have softened the blow of the global slump on the economy,” said Lee Jong-wha, chief economist with the ADB.

The relatively high growth rate of 7.1 percent during the first half of 2009 was driven largely by investment, which contributed 6.2 percentage points, said the report. The document maintained that consumption contributed 3.8 percentage points, but said that number was largely offset by a 2.9 percentage point decline in net exports.

But the bullish report was too conservative for one senior economist.

“I think the ADB’s estimation is a bit modest,” said Wang Yuanhong, senior economist and head of the Economic Forecasting Department of the State Information Center.

Wang said China’s annual GDP growth rate, both this year and next, may exceed the ADB’s prediction.

The bank said China’s stimulus spending and record bank lending could interrupt efforts to restructure the economy away from investment-heavy and export-led growth toward private consumption.

And Robert Wihtol, ADB’s China director, warned that the country probably will not see double-digit growth in the next few years because of weak external demand, possible asset bubbles, bad loans and the failure to restructure the economy.

He said China’s stimulus policy could pose a risk to domestic growth if it is not sustained and added that China should focus on boosting employment for long-term economic growth.

He also called on China to set up a solid social safety net so people spend more of their earnings, instead of saving for a rainy day.

Wang, from the State Information Center, pointed out that the Chinese government has invested heavily in recent years on public health care and improving incomes.

The ADB report said Asia is the region most likely to lead the world out of the global economic recession. Asia, excluding Japan, is expected to grow by 3.9 percent in 2009 and the ADB expects it to grow by 6.4 percent next year. – China.org.cn

]]> 4232 2009-09-29 20:37:09 2009-09-30 03:37:09 open open bank-bullish-on-growing-recovery publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6198#comments wfw:commentRSS http://zikkir.com/business/6198/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6198 syndication_item_hash 3ebc35ae5d30f61646614a2ff61b7d21 PetroChina’s Dushanzi refinery starts operations http://www.ethiopianreview.com/business/4231 Wed, 30 Sep 2009 03:37:46 +0000 http://zikkir.com/business/?p=6200 PetroChina, the nation’s largest oil producer, started formal operations at its Dushanzi refinery and chemical plant in far western Xinjiang region Monday to ensure energy security, the refinery said Tuesday.

The plant, which includes a 10 million-tonne-a-year refinery and a 1 million tonne-a year ethylene production facility, is an important part of the China-Kazakhstan energy cooperation strategy.

The facility mainly processes Kazakhstan high sulfur crude pumped via a Kazakhstan-China pipeline.

It covers an area of 455 hectares and has an investment of 30 billion yuan (4.4 billion U.S. dollars).

The plant is expected to have an annual sales revenue of more than 60 billion yuan. – China.org.cn

]]> 4231 2009-09-29 20:37:46 2009-09-30 03:37:46 open open petrochina%e2%80%99s-dushanzi-refinery-starts-operations publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6200#comments wfw:commentRSS http://zikkir.com/business/6200/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6200 syndication_item_hash 22e11ecd2c0eb2ab4bdfbb419b830b17 Jumbo jet finds many takers http://www.ethiopianreview.com/business/4230 Wed, 30 Sep 2009 03:38:36 +0000 http://zikkir.com/business/?p=6202 Airlines and aircraft lessors from China and abroad are approaching China’s jumbo jet producer, eager to become the first user of this more economic and environment-friendly home-made passenger plane, a senior executive said yesterday.

The list of primary users of the C919, China’s largest domestically produced jumbo jet, will be announced in the first half of next year, said Chen Jin, sales and marketing chief, Commercial Aircraft Corporation of China Ltd (COMAC), at the Beijing International Aviation Summit.

Chen said airlines and aircraft leasing companies from both home and abroad had evinced interest in the jumbo jet. He, however, declined to reveal the company names.

“A plane satisfying market needs will surely get orders. The C919 jumbo jet is more advanced compared to the current operating aircraft of the same size,” he said.

Compared to similar jets made by the two global aviation giants, Boeing and Airbus, the C919 will be cheaper for airlines to operate.

“It will use between 12 and 15 percent less fuel, and help reduce carbon emissions,” he said.

Parts of the jumbo jet will use composite materials to reduce weight, said Wu Guanghui, chief designer of the C919.

So far, COMAC has nailed down its domestic manufacturers. The wings will be produced in Xi’an, the nose will be manufactured in Chengdu, the fuselage in Shenyang and Nanchang, and the parts will be finally assembled in Shanghai, he said.

“These manufacturers also supply parts for Airbus and Boeing, so their production capacity should not be doubted,” he said.

As the first home-made jumbo jet, the letter C represents China as well as COMAC, the first 9 implies forever in Chinese culture, and 19 means the jet will have 190 seats.

The single-aisle jetliner is designed for short- to medium-range hauls up to 5,555 km.

Its scheduled maiden voyage is slated for 2014 and the aircraft will be up for deliveries after 2016. – China.org.cn

]]> 4230 2009-09-29 20:38:36 2009-09-30 03:38:36 open open jumbo-jet-finds-many-takers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6202#comments wfw:commentRSS http://zikkir.com/business/6202/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6202 syndication_item_hash 308f953e73ffd1f39b6e70a058640c0a AVIC General Aviation scouts for stakes in foreign firms http://www.ethiopianreview.com/business/4229 Wed, 30 Sep 2009 03:39:23 +0000 http://zikkir.com/business/?p=6204 AVIC General Aviation Co Ltd is seeking equity participation in a foreign general aviation aircraft manufacturer to strengthen its development capabilities and to explore the overseas market, a senior company executive said yesterday.

“We are now talking to several foreign companies. We might completely acquire (a company) or take a controlling stake. We hope to reach an agreement by the end of this year,” said Tan Weidong, president of AVIC General Aviation Co Ltd, without revealing the names of the firms.

AVIC General Aviation also plans to list within the next three years, Tan said.

The company was set up last year to lead the development of general aviation airplanes. AVIC manages the Shanghai-listed Guizhou Aviation Industry Group Co Ltd, which produces trainers and unmanned aerial vehicles, and Shijiazhuang Aircraft Industry Co Ltd that manufactures light aircraft.

“We plan to form strategic partnerships with world leading manufacturers to develop more advanced general aviation aircraft, upgrade existing products and explore the overseas market,” Tan said on the eve of the Aviation Expo/China 2009. The four-day expo will start today in Beijing.

Zhuhai in Guangdong province will become the company’s base for research and development, marketing, final assembly, test flights and customer service, Tan said.

The company will focus on developing light multi-purpose turboprop aircraft and business jets, Tan said.

General aviation refers to all flights other than military and scheduled airline flights. China had about 900 general aircraft by the end of last year, according to figures from the Civil Aviation Administration of China.

A major constraint on the industry is airspace inconvenience and a lack of air and ground services. – China.org.cn

]]> 4229 2009-09-29 20:39:23 2009-09-30 03:39:23 open open avic-general-aviation-scouts-for-stakes-in-foreign-firms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6204#comments wfw:commentRSS http://zikkir.com/business/6204/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6204 syndication_item_hash 77a12d3c952c889cbe098d69d5add643 CIC purchases 15% stake in Noble Group http://www.ethiopianreview.com/business/4228 Wed, 30 Sep 2009 03:39:58 +0000 http://zikkir.com/business/?p=6206 China Investment Corp (CIC), the nation’s sovereign wealth fund, has bought a 15-percent stake in Noble Group Ltd as the commodity supplier benefits from the country’s demand for coal, iron ore and soybeans.

Noble will sell $850 million worth of new and existing shares to CIC at 8.1 percent less than the last traded price. The sale includes 135 million shares owned by Chief Executive Officer Richard Elman and 438 million new shares, the Hong Kong-based company said in a statement.

CIC is increasing investments in commodities. Noble’s second-quarter profit doubled as China boosted raw material imports to fuel $586 billion of stimulus spending needs.

“CIC started accelerating its overseas investment pace in the most recent three to six months, they are showing a clear direction, that is from paper assets to commodities,” said Zhang Zhiming, director of asset allocation research at HSBC Holdings Plc in Hong Kong. “If they hold long-term positions in commodity assets, they need a trading house.”

Noble has more than doubled, making it the fourth-best performer on the Straits Times Index. The company’s shares traded at S$2.3 before they were suspended on Sept 15 when it said it was in talks with an unspecified investor. The shares remain suspended until yesterday.

CIC, which will pay S$2.1137 for each Noble stock, has been buying shares in the property and resources sectors in recent months. The fund had 87.4 percent of its assets of $297.5 billion invested in cash or equivalents last year, it reported last month.

A CIC spokeswoman confirmed the deal, adding it still needs approval from Noble’s board. Noble, founded in 1987 by Elman, owns mines, farms, ports, processing facilities and ports, according to its website. It trades commodities from aluminum to zinc and operates in more than 40 countries.

Noble will use S$926 million cash from the new shares to expand investment in global agricultural commodities, where it already supplies materials including soybeans, cocoa, coffee and sugar. Sales from its agricultural business dropped 30 percent to $3.38 billion in the first half of this year, accounting for a quarter of its total revenue of $13.3 billion.

China is the world’s biggest buyer of commodities including soybeans, soybean oil, cotton, iron ore, aluminum, copper and zinc. The country’s demand for commodities “is back on track in a very big way”, CLSA Research Ltd said last week. – China.org.cn

]]> 4228 2009-09-29 20:39:58 2009-09-30 03:39:58 open open cic-purchases-15-stake-in-noble-group publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6206#comments wfw:commentRSS http://zikkir.com/business/6206/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6206 syndication_item_hash 2c1696e6a8f010499c2a04ce9420baff A320 to get local wings next year http://www.ethiopianreview.com/business/4227 Wed, 30 Sep 2009 03:41:09 +0000 http://zikkir.com/business/?p=6208 1
Over half of the Airbus worldwide fleet has components produced in China.

Xi’an Aircraft Industry (XAC) will deliver the first set of fully equipped wings to Airbus’ A320 aircraft final assembly line in Tianjin in the first quarter of next year, an Airbus executive said yesterday.

The wing equipping work will start next month in Tianjin at a site close to the final assembly line, said Laurence Barron, president of Airbus China.

The A320 wing is the largest and most complicated Airbus aircraft component a Chinese company has ever made. China is Airbus’ only wing manufacturer outside Europe. Currently, XAC manufactures the A320 wing box structures in Xi’an, Shaanxi province, and ships them to the UK for installation of moving parts and systems.

Airbus will also create a logistics center in Tianjin to harmonize the transport systems for all aircraft components flowing in and out of China, Barron said.

“We will define a logistics system so that everything made in China will be shipped through one system. The main port for shipping will be Tianjin,” Barron said during the Beijing International Aviation Summit.

Over half of the Airbus worldwide fleet has components produced in China. The Chinese suppliers are located across the country and handle their own logistics. The total annual value of Airbus’ procurement in China reached over $100 million last year and is expected to touch $200 million in 2010 and $450 million in 2015.

“It will take several years to persuade every supplier to join this system. But we think we can achieve cost savings and improve reliability and reduce damage rate if we have a dedicated logistics system,” Barron said, adding that Airbus started such a system in the US a few years ago.

Airbus said earlier that it would outsource 5 percent of its latest A350 airframe work to China. The wide body aircraft is due to enter service in 2013.

“If Chinese suppliers can offer competitive prices, it might even exceed 5 percent,” Barron said.

So far, it has signed two A350 work packages, one for rudders and the other for maintenance doors, with its composite materials manufacturing joint venture in Harbin and a third contract for elevators to be signed by the end of this year, Barron said.

The joint venture, located in Harbin, is 80 percent controlled by subsidiaries of AVIC (China Aviation Industry Corporation) with Airbus holding the rest of the stake.

Airbus is also negotiating with Chengdu Aircraft Corporation for allocating the manufacturing of spoilers for the A350, Barron said.

The rest of the dedicated 5 percent work share will come from Airbus’ Tier-1 suppliers’ subcontracting work to China, Barron added. – China.org.cn

]]> 4227 2009-09-29 20:41:09 2009-09-30 03:41:09 open open a320-to-get-local-wings-next-year publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6208#comments wfw:commentRSS http://zikkir.com/business/6208/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6208 syndication_item_hash 576e7bfcf745f2b53e041654317c09ba Fresh liquidity concerns pull down equities http://www.ethiopianreview.com/business/4226 Wed, 30 Sep 2009 03:41:45 +0000 http://zikkir.com/business/?p=6210 Chinese stocks fell, dragging the Shanghai Composite Index to a two-week low, on concerns that share sales will lure funds away from existing equities.

PetroChina Co, the world’s most valuable company, slid 2.2 percent to 12.99 yuan and Shanghai Pudong Development Bank Co, the Chinese partner of Citigroup Inc, retreated 4 percent to 19.06 yuan.

Guoyuan Securities Co slumped 6.7 percent to 19.30 yuan after regulators approved its plan to sell additional equity. Tangshan Iron & Steel Co lost 7.5 percent to 6.9 yuan as it resumed trading after getting consent to combine with associate companies.

The benchmark index fell 69.46, or 2.3 percent, to 2,897.55 at close, the lowest since Sept 7. The gauge swung between gains and losses at least 10 times yesterday. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 77.58, or 2.4 percent, to 3,131.03.

“When the market outlook isn’t that clear, some investors withdraw funds from their portfolios to invest in IPOs, which guarantee returns on the first day of trading,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co.

Chinese companies raised at least 96.1 billion yuan in local initial public offerings since a nine-month moratorium on sales ended in June.

Hang Seng up

Hong Kong stocks rose, snapping a two-day decline, after an index of US leading economic indicators climbed for a fifth month. The Hang Seng Index advanced 1.1 percent to 21,701.14 at close, snapping its 1.4-percent decline in the previous two days.

The Hang Seng China Enterprises Index, which tracks H shares of mainland companies, gained 0.8 percent to 12,511.55. – China.org.cn

]]> 4226 2009-09-29 20:41:45 2009-09-30 03:41:45 open open fresh-liquidity-concerns-pull-down-equities publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6210#comments wfw:commentRSS http://zikkir.com/business/6210/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6210 syndication_item_hash 33351b494e806e94763841c0bf14cf4a Tourism agency sets price range for IPO http://www.ethiopianreview.com/business/4272 Wed, 30 Sep 2009 04:18:00 +0000 http://zikkir.com/business/?p=6212 China International Travel Service Corp is seeking to raise as much as 2.6 billion yuan (US$380.7 million) in a Shanghai initial share sale after setting a price range for the offer that most analysts said was in line with expectations.

The company priced the 220 million A shares, or 25 percent of its enlarged capital after the issuance, at between 10.80 yuan and 11.78 yuan, according to a filing with the Shanghai Stock Exchange yesterday.

The range would allow the Beijing-based company, China’s biggest tourist agency, to raise 2.4 billion yuan to 2.6 billion yuan. The company earlier said it aimed to raise 1.7 billion yuan to fund a travel network, duty-free shops and other projects.

“China International’s IPO comes at the right time because tourism-related stocks are in favor in the run-up to the National Day holiday,” said Guolian Securities analyst Wei Chanjuan.

“Still,” she added, “other recent new listings have not been very strong.”

Leading position

Although some analysts said the price range was a bit on the high side and might damp demand for the shares, others said it appropriately reflects the company’s value given its leading position in the domestic market.

Shanghai Securities analysts wrote in a note that it would be reasonable for China International Travel to trade at 30 to 35 times estimated 2009 earnings, and that was in line with the offer price range.

Major tourism stocks in the A-share market trade at an average PE ratio of 40, according to the securities house.

Wei said China International Travel’s subscriptions could be affected by many investors shifting funds in advance of the launch of the new Growth Enterprise Market set to open next month in Shenzhen.

She forecast China International Travel could rise 30 percent in its trading debut, while Shanghai Securities is predicting a gain of up to 40 percent.

Twenty-three other IPOs averaged 66 percent gains in first-day trading since China lifted a ban on new share sales in June. Sichuan Express Co tripled its price in its July debut, and Metallurgical Corp of China traded at a premium of 28 percent in its debut on Monday.

China International Travel shares will begin trading after the National Day holiday. – China.org.cn

]]> 4272 2009-09-29 21:18:00 2009-09-30 04:18:00 open open tourism-agency-sets-price-range-for-ipo publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6212#comments wfw:commentRSS http://zikkir.com/business/6212/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6212 syndication_item_hash 9057e0df31299c4c7e4afc9893a7bbbf China Telecom cancels roaming fees http://www.ethiopianreview.com/business/4271 Wed, 30 Sep 2009 04:18:35 +0000 http://zikkir.com/business/?p=6214 China Telecom customers who join one of its three promotional packages will not be charged when answering phones in 31 provinces and municipalities nationwide from October 1, the company announced on September 22, Chinanews.com reported.

Analysts pointed out the new rules mean that China Telecom, one of the three telecom carriers in China, has effectively cancelled mobile roaming service fees.

Before the new policy was released, China Telecom did not charge for accepting calls within the city where a customer buys the services package, but when the customer travels to other cities and provinces, extra fees will be added to the bill, the report said.

An anonymous China Telecom official said the company has spent half a year upgrading and integrating the China Telecom network. They will also soon launch more than 70 different 1,000-yuan ($146.48) 3G mobile phones to complement the promotional packages, according to Chinanews.com.

A source said China Unicom, another telecom carrier, will adopt similar policies, canceling roaming services fees and call acceptance charges within their network. – China.org.cn

]]> 4271 2009-09-29 21:18:35 2009-09-30 04:18:35 open open china-telecom-cancels-roaming-fees publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6214#comments wfw:commentRSS http://zikkir.com/business/6214/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6214 syndication_item_hash 79087ac3583eba5480d7f9aba2821331 ADB extends funds to develop China’s small cities, towns http://www.ethiopianreview.com/business/4270 Wed, 30 Sep 2009 04:19:14 +0000 http://zikkir.com/business/?p=6216 The People’s Republic of China’s drive to develop smaller towns and cities in a balanced, environmentally sustainable way is getting support from a 100-million-US-dollars Asian Development Bank loan, the Manila-based bank announced on Tuesday.

The funds, approved by ADB’s Board of Directors, will be used for infrastructure projects in several areas of China’s northeast Liaoning Province. The province, with a population of nearly 43 million, is looking to revive its economy and provide new jobs in the wake of the closure of many state-owned heavy industries in recent years and a surge of migrants from the countryside as farm work declines, ADB said in news release.

It said China’s economy has grown rapidly over the past two decades, but the benefits have not been shared evenly with the average disposable income of urban residents about 3.3 times the average net income of farmers in 2006. At the same time, rapid and heavy urbanization strained resources and infrastructure leading to pollution problems.

As part of its current five-year national economic plan, the Government has earmarked the development of small cities and towns to generate jobs for rural migrants and to reduce the urban-rural income gap, while helping relieve the pressure on water, sanitation and other key services in the major cities, the bank said.

The demonstration project will support Liaoning Province’s own five-year development plan by funding infrastructure development in about seven cities and towns, including roads, bridges, drainage, water and sanitation services.

It will also help build up the project and environmental management capacities of provincial, municipal and county agencies, and provide an example for sustainable development that can be replicated. The Liaoning Project is one of three small cities and towns development projects that ADB is financing (the others are in the north-eastern provinces of Hebei and Shanxi).

“This project will demonstrate to similar cities and towns in Liaoning, and other provinces, how they can achieve economically, socially and environmentally sustainable urban development,” said Barry Reid, Senior Financial Analysis Specialist, in ADB’s East Asia Department.

ADB’s loan has a 26-year term with a six-year grace period with pricing based on ADB’s LIBOR-based lending facility. It will cover 42.3 percent of the total project cost of $236.5 million.

City and county governments in Liaoning will provide the remainder, along with a 250,000-US-dollars grant from the ADB-administered Water Financing Partnership Facility, which has contributions from the governments of Australia, Austria and Norway. – China.org.cn

]]> 4270 2009-09-29 21:19:14 2009-09-30 04:19:14 open open adb-extends-funds-to-develop-china%e2%80%99s-small-cities-towns publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6216#comments wfw:commentRSS http://zikkir.com/business/6216/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6216 syndication_item_hash b44391b54e9b422f3c52d44ea175e2f1 Airbus to deliver 80 jets to China http://www.ethiopianreview.com/business/4269 Wed, 30 Sep 2009 04:19:57 +0000 http://zikkir.com/business/?p=6218 Airbus will deliver 80 airplanes to China this year, underscoring the resilience of China’s aviation market despite its taking a heavy punch during the global financial downturn.

Although the global economy is retreating, Airbus was confident of Chinese market as its major airlines generated profits during the first half of the year and a 20 percent market expansion, Airbus China President Laurence Barron said Wednesday at the 13th Beijing International Aviation Exposition.

Besides jet manufacture, Airbus was willing to widen cooperation with China in the fields of logistics, on-board communications system, air traffic control and air financial services, he said.

China has 514 Airbus planes in service, or 41 percent of its total fleet of large commercial jets, of which 82 percent are A320, according to Airbus.

Last year, Airbus handed over 73 jets to China, or 15 percent of its global delivery.

China received 53 Airbus aircraft in the year ending Aug. 31.

In August, China’s total air traffic turnover grew 7.4 percent from the previous month and 30.6 percent from a year ago, according to data released by the Civil Aviation Administration of China (CAAC).

As of Sept. 12, the country’s civil aviation industry had realized a profit of 8 billion yuan (1.17 billion U.S. dollars) for 2009, said the CAAC. – China.org.cn

]]> 4269 2009-09-29 21:19:57 2009-09-30 04:19:57 open open airbus-to-deliver-80-jets-to-china publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6218#comments wfw:commentRSS http://zikkir.com/business/6218/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6218 syndication_item_hash 19354db7200be5911dc36a159035d5ca Stock market sluggish for second day, down almost 2 pct http://www.ethiopianreview.com/business/4268 Wed, 30 Sep 2009 04:20:35 +0000 http://zikkir.com/business/?p=6220 Chinese equities went down by almost 2 percent Wednesday, continuing the downward trend for the second day this week as investors remained cautious and chose to ride the fence.

The benchmark Shanghai Composite Index lost 54.83 points, or 1.89 percent, to finish at 2,842.72.

The Shenzhen Component Index fell 2.97 percent, or 351.13 points, to close at 11,462.33.

Combined turnover also shrank, from Tuesday’s 222.77 billion yuan to 191.61 billion yuan (28.18 billion U.S. dollars).

Losers outnumbered gainers by 760 to 107 in Shanghai and 662 to 110 in Shenzhen. – China.org.cn

]]> 4268 2009-09-29 21:20:35 2009-09-30 04:20:35 open open stock-market-sluggish-for-second-day-down-almost-2-pct publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6220#comments wfw:commentRSS http://zikkir.com/business/6220/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6220 syndication_item_hash 3eca96f38c618619ddd6c4d268a961e9 Goldman Sachs invests 2.59 bln HKD in China’s Geely http://www.ethiopianreview.com/business/4267 Wed, 30 Sep 2009 04:21:14 +0000 http://zikkir.com/business/?p=6222 China’s largest private carmaker Geely Automobile Holdings Ltd announced Wednesday it will raise 2.59 billion Hong Kong dollars (334 million U.S. dollars) selling convertible bonds and warrants to a fund managed by Goldman Sachs Group Inc.

Geely’s stock rose nearly 26 percent in Hong Kong trading at 2.25 Hong Kong dollars Wednesday morning, the highest in more than nine years. GS Capital Partners VI Fund LP (GSCP) will have 15.1 percent of Geely if it converts the bonds and exercises the warrants, says a statement from Geely.

Geely will use part of the fund for acquisitions.

The carmaker will work with GSCP to further strengthen financial management, operational efficiency and corporate governance practices, said Li Shufu, Geely’s chairman.

Geely suspended transactions on Sept. 16 and restored them on Wednesday. – China.org.cn

]]> 4267 2009-09-29 21:21:14 2009-09-30 04:21:14 open open goldman-sachs-invests-2-59-bln-hkd-in-china%e2%80%99s-geely publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6222#comments wfw:commentRSS http://zikkir.com/business/6222/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6222 syndication_item_hash 4b3e960e12cce85647c1a2bcdb499e84 China encourages foreign firms to participate in its large jet program http://www.ethiopianreview.com/business/4266 Wed, 30 Sep 2009 04:21:47 +0000 http://zikkir.com/business/?p=6224 China encourages and welcomes foreign companies to participate in its large jet program, said Vice Premier Zhang Dejiang Wednesday.

Zhang made the remarks while meeting with Jean-Paul Herteman, Chief Executive Officer of Safran group, a French high-tech company with a leading position in aerospace, defense and security.

Safran is one of the competitive bidders for the large jet program which China approved in February 2007.

“To develop the large jet is a strategic decision of the Chinese government and one of the major programs for building up an innovation-oriented country,” said Zhang.

The Chinese government encourages and welcomes foreign companies, including Safran, to participate in China’s large jet and other civilian aircraft programs to achieve mutual-beneficial and win-win results, Zhang said.

The Commercial Aircraft Corporation of China (COMAC), a major entity of the large jet program, was inaugurated in 2008 in China’s financial hub Shanghai to independently produce the country’s jumbo passenger aircraft.

COMAC displayed a scale model of its jetliner C919, the country’s first home-grown large commercial airliner, at an international air show which opened on Wednesday in Beijing.

Reports said that the maiden flight of C919 was planned for late 2014, with delivery expected by 2016.

COMAC has sent requests for proposal to over 100 potential suppliers, both domestic and international, and has been in touch with several engine suppliers.

Only the United States, Europe, and Russia are able to produce large passenger aircraft with more than 150 seats. Airbus and Boeing are in the dominant position in the world market. – China.org.cn

]]> 4266 2009-09-29 21:21:47 2009-09-30 04:21:47 open open china-encourages-foreign-firms-to-participate-in-its-large-jet-program publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6224#comments wfw:commentRSS http://zikkir.com/business/6224/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6224 syndication_item_hash 0c0de63fd618780b11f9d9e62d3f947e Wuliangye comes under regulator’s glare http://www.ethiopianreview.com/business/4265 Wed, 30 Sep 2009 04:22:48 +0000 http://zikkir.com/business/?p=6226 1
The regulator said it began to probe the company on July 28 after receiving complaints.

The China Securities Regulatory Commission (CSRC) yesterday said it was conducting a full investigation of liquor maker Wuliangye Yibin Co for incomplete and inaccurate information disclosure.

According to the CSRC, Wuliangye made the revenue of one subsidiary 1 billion yuan higher than actual figures in 2007 and did not correct the material mistake in its financial statement.

The company had about 55 million yuan of investment losses in 2007 and failed to report it. In addition, in 2000, the company borrowed 20 million yuan from a subsidiary for securities investment and lost about 5.2 million yuan. None of these details were incorporated in the financial statements, it said.

In 2000, the company used about 130 million yuan for securities investment. By the end of 2005, it had lost about 42 million yuan. The securities firm went bankrupt in 2007 and Wuliangye got about 4.58 million yuan as compensation.

Yet, the company didn’t accrue the impairment provision in the financial reports between 2006 and 2008, the CSRC said.

The CSRC said it began to probe the company on July 28 after receiving complaints. The regulator said it has discovered that the company had undisclosed material investment losses and also inaccurately disclosed revenue for 2007.

“Wuliangye violated the Security Law on accurate and complete information disclosure. The regulator will try to hunt out all the relevant facts and decide the administrative penalty,” an official with the CSRC said.

On Sept 9, the company said the CSRC was investigating it for suspected violations of the Security Law. On that day, its shares dived 6.22 percent to 22.60 yuan.

The company’s shares has since then been declining steadily. Its shares dropped about 4 percent yesterday to close at 21.60 yuan.

“Publicity, fairness and equality are the footstone of the securities market. Information disclosure is important for increasing the market transparency and protecting shareholders’ rights,” the official said.

The securities watchdog has been increasingly watching the information disclosure of listed companies. Since 2007, it has investigated about 49 cases of suspected violations on information disclosure and 16 cases have been handed over to the police, the CSRC said. – China.org.cn

]]> 4265 2009-09-29 21:22:48 2009-09-30 04:22:48 open open wuliangye-comes-under-regulator%e2%80%99s-glare publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6226#comments wfw:commentRSS http://zikkir.com/business/6226/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6226 syndication_item_hash 0a91f33a8a28eb766c0bf7d24e337452 Bofors: Centre decides to withdraw case against Quattrocchi http://www.ethiopianreview.com/business/4264 Wed, 30 Sep 2009 04:25:00 +0000 http://zikkir.com/business/?p=6228 The two-decade old Bofors pay-off case may finally be buried with the Centre today telling the Supreme Court that it has decided to withdraw case against Italian Businessmen Ottavio Quattrocchi.

Solicitor General Gopal Subramanium told a bench, headed by Chief Justice K G Balakrishanan, that all efforts to extradite Quattrocchi, an accused in the case relating to payment of Rs 64 crore as commission in the Howitzer deal, have failed.

He said the CBI has taken the decision to close the case by also taking into account Delhi High Court judgement of 2004 which had held that no case of corruption was made out in the Bofors deal.

Subramanium said the Government came to the decision after taking into account all the facts of the case.

The Solicitor General’s statement in the court came under immediate attack from the BJP and the lawyer who is pursuing the Bofors case in the Supreme Court while the Congress Party said that after all the case has to come to a closure. – Business Standard

]]> 4264 2009-09-29 21:25:00 2009-09-30 04:25:00 open open bofors-centre-decides-to-withdraw-case-against-quattrocchi publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6228#comments wfw:commentRSS http://zikkir.com/business/6228/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6228 syndication_item_hash cbb0ad016d1b718918defbd690dc4d05 Procter & Gamble Mines Web http://www.ethiopianreview.com/business/4263 Wed, 30 Sep 2009 04:28:25 +0000 http://zikkir.com/business/?p=6230 1
Procter & Gamble officials think they can sell anything, even Pampers, over the Web.

Procter & Gamble Co., one of the nation’s most enterprising digital marketers, is now probing ways to translate the millions of hits that its websites attract monthly into hundreds of millions in added sales.

The maker of Olay, Pampers, and Tide generates about $500 million in e-commerce now, less than 1 percent of its total sales of $79 billion. But the number has been quietly growing, and with the total e-commerce industry itself advancing in the double digits, P&G is forging ahead on several fronts, both through its own product websites and those of retailers.

It can be as basic as including a “shop now” option on a Pampers website that links to retailers from Wal-Mart to Drugstore.com. And it can be as dogged as tracking all emerging “e-tailers,” while being well installed in those that offer the most promise for packaged goods. Either way, all efforts need to be spot on, since packaged goods is a relatively young area in e-commerce, a venue long trafficked for electronics, airline tickets, and books. But diapers?

Apparently, yes.

“I would say there are opportunities across virtually all of our categories to be successful in e-commerce because consumers are increasingly online and willing to add new categories of products to their online shopping list,” said Joe Quinn, P&G’s global e-commerce leader, in an email.

Room to Grow

P&G certainly has room to grow in the virtual store and the sway to help design the shelf space being created. Of the more than $4.8 billion P&G spent on U.S. advertising in 2008, an estimated $47 million, about 1 percent, went to Internet marketing, according to Advertising Age. P&G has declined to be specific on its e-commerce goals, but Quinn said its online sales have been growing in the double digits for the last several years.

That tracks with total e-commerce, which is expected to grow by 11 percent in 2009, to $156.1 billion, according to Forrester Research. By 2013, it is expected to advance an additional 47 percent, to $229 billion, accounting for 8 percent of all U.S. sales.

Comparatively, with just $500 million generated from e-commerce this year, P&G can afford a bigger presence, said Brian Walker, a senior analyst of e-commerce at Forrester.

“At under a percent of sales, it is underpenetrated,” he said. “I would say there’s a lot of potential for companies like Procter & Gamble to expand their online business.”

There are hindrances, since Cover Girl, Gillette, and other packaged goods—unlike books, running shoes, and furniture—are just establishing a foothold online. And for a reason. These are items readily available in most nearby stores and can be easily picked up with the groceries. Furthermore, some of the key selling points of P&G products—such as smell—can’t be translated to a website.

Keep It Simple

But as people increase their frequency of shopping, they are expanding the categories they browse to beauty and household goods, P&G said. The trick is to make the shopping disarmingly simple.

P&G 18 months ago introduced its “where to buy” options on its sites throughout North America. Such links take the consumer to an online retailer, or a menu of retailers, that have the product available. An added bonus: Shoppers can cost-compare right there.

This effort is now being expanded into Western Europe and other global regions.

Significantly for P&G, people who shop online are prone to doing research, and P&G provides a wealth of it through blogs, online communities, and literally hundreds of product websites. If the consumer is already on the Pampers Village website, what more would it take to get her to buy some Cruisers? The more seamless the link from review to purchase, the more heightened its chances for a sale.

Such seemingly simple additions as a “buy now” link require the partnership of retailers, and that’s where P&G’s size and influence are imperative. A recent example is the launch of Olay ProX. P&G introduced the product through a website that connected directly to participating retailers; it was concluded a success. But the effort required the coordination of those retailers.

Which is where all growth begins. In an August conference call, CEO Bob McDonald said P&G could boost sales “substantially” over the next few years.

“We see e-commerce as part of a broader effort to establish online connections with consumers that build our brands and our business with retail partners,” he said.

As for the retail options, the number is growing. Amazon.com, which sells P&G products, remains the largest online store, and eBay ranks high as well, according to Forrester’s Walker.

But, he said, the industry is seeing significant growth among multichannel retailers such as Target and Wal-Mart, P&G’s single-largest customer.

“They’re going to have a lot of retail partners who are expanding their online business,” Walker said. “P&G will look to take advantage of that.” – Portfolio

]]> 4263 2009-09-29 21:28:25 2009-09-30 04:28:25 open open procter-gamble-mines-web publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6230#comments wfw:commentRSS http://zikkir.com/business/6230/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6230 syndication_item_hash 7005c4d2a335839826ee50f082bd20d2 Green Oil http://www.ethiopianreview.com/business/4262 Wed, 30 Sep 2009 04:29:55 +0000 http://zikkir.com/business/?p=6232 1
Oil companies’ investments in alternative energy are a fraction of a fraction of what they spend looking for oil. Is Exxon Mobil’s recent investment in Synthetic Genomics merely a token gesture?

It seems at first like an odd couple—the world’s biggest oil company jumping into a deal with a California inventor whose latest project is finding a way to replace petroleum with algae.

But that’s just what happened in July when Exxon Mobil announced a deal with Craig Venter’s Synthetic Genomics to develop a new biofuel. And while it may be the biggest such deal, at up to $600 million, between an oil company and an alternative fuel company, it’s far from the first.

Oil companies have long been at play in the alternative-energy field. They’re covering their bets, they say, preparing for a world that needs all sources of energy—including alternatives to oil. Virtually every major oil company has invested in biofuels, or solar, or using hydrogen as a fuel, or geothermal energy, or wind. Their critics, though—and there are many—point out that the oil majors’ investments in alternatives are dwarfed by their continuing spending on the quest to find more crude. They should, in short, act less like oil companies and more like energy companies.

Exxon’s initial investment in its joint venture with Venter’s company is $300 million for Synthetic Genomics and another $300 million within Exxon on the joint venture. The oil company will work with Venter’s company on growing an algae that can produce biofuel that could be substituted for petroleum—the holy grail of biofuel research. If the research pans out, the company could spend billions getting it into mainstream use.

“This is not going to be easy, and there are no guarantees of success, but we’re combining Exxon Mobil’s technical and financial strength with a leader in biosciences and genomics to take on this challenge, and we’re very excited about it,” Emil Jacobs, Exxon’s vice president of research and development, said at the July press conference announcing the joint venture.

Exxon made its move into green energy at a fortuitous time. Everywhere, it seems, are signs that public opinion and governmental attitudes about energy sources and their impact on the environment are changing. This week, the United Nations is hosting the highest-level conference yet on the topic of climate change, and President Obama was one of many to vow support for a global climate pact.

Among major oil companies, Chevron is already the world’s biggest producer of geothermal energy, has investments in biofuel research at universities, and has a division that works on finding energy efficiencies in buildings like schools.

“The big picture really is that longer term—where we see global energy demand—we’re pretty much going to need every energy molecule,” said Chevron spokesman Alex Yelland. “Given the growth in the developing world, we’re looking across all energy sources to where we can meet that demand. What we’re trying to do on the renewable side is build businesses that can scale up.” The company’s venture capital arm has invested $240 million since 2000, about a third of it in alternative energy.

BP, which for years marketed itself as Beyond Petroleum, has investments in solar, wind energy, and biofuel projects.

“We’ve taken a significant step into the alternative-energy business and are working hard on trying to grow that into a profitable business,” spokesman Tom Mueller said. “We see lots of potential for future income from energy projects. Otherwise we wouldn’t be investing in them, but it is a long road to profitability in the alternative-energy sphere.”

For all that, though, the oil companies are still, after all, oil companies. Critics say their investments in alternative energy are paltry compared to the amount they could be spending—and a fraction of a fraction of what they actually do spend looking for oil.

“They’re token at best, and they’re getting worse,” said Steve Kretzman of Oil Change International, a Washington, D.C.-based nonprofit advocacy organization. He estimated that Exxon spent $10 million last year on alternatives, Conoco Phillips spent $165 million, Shell spent $500 million, Chevron spent $1.25 billion, and BP spent $1.5 billion.

He called it a fraction of the money the companies spent on stock buybacks and dividend payments, much less on oil exploration.

“They were making unprecedented profits last year and the year before,” said Kert Davies, research director for Greenpeace. “That should have made them think more broadly. Instead, they doubled down on oil.”

Kretzman said that while the public may want the oil companies to be more broad-based energy companies, there are sound business reasons for them to stick to their core business: oil. The oil companies are judged by Wall Street on their profits, and they’re analyzed based on how much oil analysts think they can pull out of the ground—and at what price.

“For them, they don’t see anything in their core business” in the alternative-energy game, said Kretzman.

Jacobs acknowledged as much in the press conference announcing Exxon’s algae investment.

“If you compare this program to our capital investments in exploring for oil, then it’s small,” he said. “If you compare it to other research and development programs that we’ve got within Exxon Mobil—looking at our refining industry, our chemical industry, our other businesses—this is a large R&D investment. It depends on what you’re comparing it to.”

Fadel Gheit, an analyst with Oppenheimer, when asked about Exxon’s investment in Synthetic Genomics, was blunt about the amount. “That’s a rounding error in their budget,” he said. “Remember, this is business in which they really have no experience.” The oil companies, he said, aren’t really interested in creating new ideas or new sources of energy. But they might someday be interested in companies like Venter’s that do create new sources of energy—as acquisition targets.

“They have the wallet,” he said. “You come with the original recipe, and they take it from there.” – Portfolio

]]> 4262 2009-09-29 21:29:55 2009-09-30 04:29:55 open open green-oil publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6232#comments wfw:commentRSS http://zikkir.com/business/6232/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6232 syndication_item_hash e4caa3b1259076f274d517152e90d125 Hell to Pay http://www.ethiopianreview.com/business/4261 Wed, 30 Sep 2009 04:31:42 +0000 http://zikkir.com/business/?p=6234 1
Some CEOs enjoyed huge paydays in 2008, despite the recession and lousy performance, the Corporate Library says.

While 2008 was a bad year for just about everybody, it wasn’t so bad for CEOs. Their pay only dropped .08 percent while the S&P 500 was plunging 37.58 percent, according to a preliminary report released Tuesday.

The median total realized compensation–pay that includes stock-based pay like options or awards–for the top dogs declined just 6.38 percent, according to the study, titled Big Pay for Poor Performance, from The Corporate Library, a corporate governance advocacy based in Portland, Maine. Average total realized compensation rose by 7.76 percent, while average total annual compensation rose by 120.71 percent. But researchers pointed out that those rises were due to outliers; in other words, some CEOs had a very good 2008.

“There were many more cuts in the workforce than there were in CEO pay over this period,” said Paul Hodgson, senior research associate at the Corporate Library and an author of the report.

Of the 2,000 CEOs who were in the job for the entire year, only six saw their pay actually cut, Hodgson said. “We were expecting to see some decline,” Hodgson said of CEO pay. “The decline is incredibly minimal. It wouldn’t have had to shift much for it to have been an increase.”

Still, he pointed out, 2008 was a bad enough year that it produced the first decline in median CEO pay since 2002. And, he added, some of the stock-based pay for CEOs could have been exercised before the market crashed in September, with the bankruptcy of Lehman Brothers and the freeze in credit markets.

Some 650 CEOs exercised stock options in 2008.

The study comes out at a time when executive pay is under a magnifying glass. The Conference Board came out with a plan earlier this week to limit executive pay and percs. Pay in the financial services sector is certain to be a topic of conversation at the G-20 meeting starting Thursday, and the Federal Reserve is even looking at limiting pay for bankers.

But it wasn’t bankers who made the big bucks in 2008, as their industry crashed. In 2007, three of the top ten highest-paid CEOs came from the ranks of the financial services industry, and they included Countrywide Financial CEO Anthony Mozilo, who was at the heart of the subprime mortgage industry. In 2008, none of the top ten were in the industry. In 2007, the CEOS of Goldman Sachs, JPMorgan Chase, Ameriprise Financial and The Bank of New York Mellon Corporation each earned more than $10 million. In 2008, that group averaged $1.6 million.

“The disappearance of them from the top 10 is pretty self-explanatory,” Hodgson said. But when it comes to next year’s list, the survivors may well make a comeback. Countrywide and Lehman Brothers obviously won’t make the list, since they’re no longer with us, but, “Goldman Sachs, well, who knows. It’s possible.”

No, instead of financial services, it was oil and coal company executives who dominated the list, with seven of the 10 top earners coming from the energy industry.

“The run up in commodities over the last four years has probably had a significant effect,” Hodgson said. Much of their compensation was stock-based, and oil stocks were doing very well indeed as the price of oil soared. “In 2008 they were still riding high and that has had a significant effect on the companies’ share price.”

The top-ten earners among CEOs were:

n Stephen A. Schwartzman of Blackstone Group L.P., who brought in a cool $702,440,573. Researchers, though, pointed out that a portion of what was counted as Schwartzman’s compensation was actually the return on the investment he had in Blackstone before it went public.

n Lawrence Ellison of Oracle Corporation, the software magnate who’s perpetually on highest-paid lists came in at number two with $556,976,600.

n Ray R. Irani of Occidental Petroleum Corporation pulled in $222,639,705.

n John B. Hess of Hess Corporation made $159,566,940.

n Michael D. Watford of Ultra Petroleum Corp. made $116,929,392.

n Aubrey K. McClendon of Chesapeake Energy Corporation made $114,286,867.

n Bob R. Simpson of XTO Energy Inc. made $103,485,972.

n Mark G. Papa of EOG Resources Inc. pulled in $90,471,784.

n Eugene M. Isenberg of Nabors Industries Inc. landed $79,333,079.

n Michael S. Jeffries of Abercrombie & Fitch Co. hauled in $71,795,744.

But that wasn’t the only list the Corporate Library put together. Researchers at the independent corporate governance research and analysis firm also put together a list of five, “highest paid worst performers.”

Those CEO’s had to have made more than $30 million, have had their stock’s price and dividend performance underperform peers and the S&P 500 over five years and had to have been in place as CEOs for longer than five years.

They were:

n Michael S. Jeffries of Abercrombie & Fitch, who made $71,795,744.

n J.W. Stewart of BJ Services Company, whose total realized compensation was $34,589,671

n Brian L. Roberts of Comcast, whose total realized compensation was $40,818,563.

n John V. Faraci of International Paper, whose total realized compensation was $38,245,413.

n Eugene M. Isenberg of Nabors Industries, who made $79,333,079.
- Portfolio

]]> 4261 2009-09-29 21:31:42 2009-09-30 04:31:42 open open hell-to-pay publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6234#comments wfw:commentRSS http://zikkir.com/business/6234/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6234 syndication_item_hash 7bd9a4294911aa4edabc8e54e7be7630 Capital Offense http://www.ethiopianreview.com/business/4260 Wed, 30 Sep 2009 04:34:11 +0000 http://zikkir.com/business/?p=6236 1
Insufficient bank capital was one of the factors in the global financial crisis.

Raising bank capital is an issue near the top of the agenda at Thursday’s summit meeting of G-20 leaders that President Obama is hosting in Pittsburgh. It’s too bad that few of the leaders fully understand it.

Bank capital, simply defined, is the cushion banks set aside to absorb losses. But calculating a bank’s risks and how much it should keep as a reserve is a technical issue usually intricately negotiated by bank supervisors who meet regularly in Basel, Switzerland.

“It’s very clear that capital levels were far too low before the crisis started,” says Harald Benink, a banking professor at Tilbury University in the Netherlands. “There was a confidence crisis in the markets—banks didn’t want to lend money to each other, and the reason for that was there was concern about each other’s solvency.”

Just how bad is the bank capital problem? The International Monetary Fund estimated in April that it would take banks in the U.S. and Europe $875 billion in new capital just to raise their leverage—equity divided by total assets—to the level prevailing before the crisis began. It would take $1.7 trillion to get banks back to the leverage ratios prevailing in the 1990s. And that’s not even counting the new capital that some governments want to establish as an international standard.

The move to boost capital is being pushed by Treasury Secretary Timothy Geithner, who wrote in the Financial Times that “strengthening capital requirements is an essential part of a broader effort to modernize our regulatory framework so that the financial system is strong enough to withstand the failure of large, complex institutions.”

Geithner is pressing the other members of the G-20 to accept not only that capital requirements for all banks should be increased, but also that firms that could pose a threat to overall financial stability—companies such as Citigroup in the recent crisis—should have to set aside more capital than other financial firms. Geithner wants an international agreement because otherwise U.S. banks that raise capital would be at a competitive disadvantage.

The problem is that not all countries want to raise their banks’ capital. European banks, for example, hold less capital than American banks. According to the IMF, the leverage ratio at European banks at the end of 2008 was at 2.5 percent, compared with 3.7 percent in the U.S.

“Many European banks would have to raise enormously more bank capital in conditions where it is still far from clear that markets will provide it,” Jeremy Warne wrote in London’s Daily Telegraph. “As in Britain, already overstretched governments might need to plug the gap.”

Bankers, of course, hate the idea of holding higher capital. “Talking capital ratios with banks is like waving a red flag in front of a bull,” says George Kaufman, a professor of finance and economics at Loyola University in Chicago. “They aren’t rational about it. They think that by leveraging more they can increase their earnings per share, and that’s not totally true.”

Bankers are also complaining that they can’t lend more, as many governments are urging them to do, at a time when they are forced to set aside more capital. “If you demand of them more capital than they need to ensure their security, then you are going to put a break on economic growth because the capital base defines the volume of financing available to the economy,” Michel Pébereau, chairman of France’s PNB Paribas, told the FT.

One new proposal being considered by the G-20 leaders is a plan to adopt a prudential system known as countercyclical capital requirements. This means essentially that when times are good, banks put away more capital, which can then be used in lean times. Also known as dynamic provisioning, it has been used successfully by Spanish banks, which have weathered the crisis far better than their European competitors. But the question is: Who would determine that an upturn has begun?

“The problem with dynamic provisioning is that it is very hard to distinguish whether you have a bubble or that prices have merely been increasing because economic growth is increasing,” says Benink. “It’s very good to talk about countercyclical capital requirements, but it will be very difficult to implement in an adequate way.”

All of this won’t be decided in Pittsburgh. Geithner says he would like an international agreement on bank capital to be reached by the end of 2010 and that it should be implemented by the end of 2012.

For some, that’s too late. “I’m strongly in favor of a capital increase; it should have been done long ago,” says Kaufman. “Most U.S. banks have capital well above the minimum, but it turned out that was still not enough and banks failed.”

Since the U.S. also wants the G-20 leaders to agree on international limits on bankers’ pay and efforts to reduce global imbalances such as the U.S. trade deficit, it could be hard for Obama to win an agreement on such a difficult issue as bank regulation. But it would be a pity if leaders take a pass because the topic is just too complicated. – Portfolio

]]> 4260 2009-09-29 21:34:11 2009-09-30 04:34:11 open open capital-offense publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6236#comments wfw:commentRSS http://zikkir.com/business/6236/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6236 syndication_item_hash bc62b550515fd9420557ea8786ac89b3 Ponzi USA http://www.ethiopianreview.com/business/4259 Wed, 30 Sep 2009 04:36:32 +0000 http://zikkir.com/business/?p=6238 1
As the financial crisis hit, Ponzi schemes that couldn’t find another victim to pay off earlier rounds of victims came crashing down.

If you think Bernie Madoff or Allen Stanford were the only Ponzi operators hard at work fleecing investors in the past few years, think again.

The Securities and Exchange Commission and FBI have seen Ponzi-scheme cases soar this year, even if many of those cases don’t get the kind of attention that the multibillion-dollar con jobs have received.

The amounts of money involved in the Madoff and Stanford schemes are, of course, truly monumental. Madoff swindled an estimated $65 billion from thousands of investors over the course of two decades before the whole house of cards came tumbling down last year as the economy crashed and the money to pay off old investors with new money dried up. Now Madoff is serving a monumental prison sentence—150 years. Stanford is accused of running a $7 billion scheme involving fraudulent certificates of deposit.

But in a more quiet way, the number of other Ponzi schemes—some of them involving some pretty big numbers themselves—that have come to light this year is just as staggering. In fact, you could call 2009 the year the Ponzi bubble burst. The contracting economy hasn’t just hurt legitimate businesses. It’s made it tough on Ponzi fraudsters as well. They rely on new investors to pay old investors, and new investors have made themselves scarce as a result of the contraction.

The FBI has 632 open cases of Ponzi schemes or high-yield investment fraud so far this year, said David Nanz, chief of the Economic Crimes unit at the FBI.

“It’s a dramatic increase,” he said. In all of 2008, the FBI handled 429 such cases, and in 2007, it handled 389.

Ponzi schemes are pyramid schemes named after Charles Ponzi, who in the 1920s duped thousands of New England residents with the promise that he could bring in big returns by investing in foreign stamps. He used money from later investors to pay off some early investors.

“The Ponzi schemes have always been with us,” Nanz said. “We have seen a dramatic increase in identifying them as they collapse.”

He attributes the increase to the economy. As the economy worsened, Ponzi operators had a harder time drawing new investors, and their schemes collapsed.

“When the tide goes out, you see who’s not wearing their bathing suits,” Nanz said.

The SEC filed more than 40 cases involving Ponzi-like activity from January through August 5, Robert Khuzami, the director of the SEC Division of Enforcement, said in a speech to the New York Bar Association. The division brought about 70 enforcement actions in 2007 and 2008 combined.

“In recent months, Ponzi schemes have become an even higher priority,” Khuzami said. “This is both because of the Madoff fraud and because the financial crisis has exposed so many Ponzi schemes. Ponzi schemes rely on a steady stream of cash from new investors to pay returns to old investors, but in a financial crisis, new investors cannot be found. So the scheme collapses.”

Enforcement officials say the dollar amounts involved in some of those cases would be eye-popping if they hadn’t been overshadowed by Madoff’s record-setting $65 billion scheme. “Years ago, a $20 million case was huge, now a $20 million case doesn’t even make the news,” Nanz said.

Here’s just a taste of some of the cases the SEC has acted upon this year:

In February, the SEC obtained an asset freeze against Paul Greenwood and Stephen Walsh of New York. The agency said the two ran a brazen investment fraud amounting to misappropriation of as much as $554 million in investor assets. The two told investors their money would be put into a stock-index arbitrage strategy. Instead, the two used investor money on homes, a horse farm and horses, luxury cars, and “rare collectibles such as Stieff teddy bears.”

In April, the SEC obtained an asset freeze to halt a scheme targeting members of the Chinese-American community, mainly around the Dallas area. The agency charged Weizhen Tang, who described himself as the Chinese Warren Buffett, with raising between $50 and $70 million for a Canadian hedge fund he controlled, and then operating a Ponzi scheme with the hedge fund since 2006.

In June, the SEC charged Peter C. Son and Jin K. Chung, both of Los Angeles, with luring approximately 500 investors in the U.S., South Korea, and Taiwan into investing in foreign currency trading. Except no trading took place with the approximately $80 million the two raised. They then used new money that came in to pay off old investors.

“There have been so many schemes in so many towns…they’re all over the place,” said Christopher Geczy, adjunct associate professor of finance and academic director of the Wharton Wealth Management Initiative at the University of Pennsylvania’s Wharton School of Business.

Geczy said it was natural that a time of economic upheaval would bring Ponzi schemes crashing down, just as other businesses have crashed down.

“It’s in some sense a natural thing that Ponzi schemes become discovered,” he said. “They happen to coincide with periods of economic distress.”

But in the case of this year of the Ponzi bubble bursting, some other factors have been at play, he said. Investors are more wary because of all the publicity the Madoff case drew. And that made it harder for the con artists to draw them into their schemes.

“In fact, they were questioning a lot of things,” Geczy said.

It may well be the case that investors have gotten smarter, at least for the time being. But Nanz is under no illusions about Ponzi schemes, even if the current Ponzi bubble has burst. “I’m not expecting it to go away anytime soon,” said the FBI man. – Portfolio

]]> 4259 2009-09-29 21:36:32 2009-09-30 04:36:32 open open ponzi-usa publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6238#comments wfw:commentRSS http://zikkir.com/business/6238/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6238 syndication_item_hash 774b579cbb835e939901e74345eaf797 Notes From the G-20 Hosts http://www.ethiopianreview.com/business/4258 Wed, 30 Sep 2009 04:37:46 +0000 http://zikkir.com/business/?p=6240 1
A contingent of Burmese monks paraded down Liberty Avenue Thursday to demonstrate their concerns over what they see as a repressive regime in their home country. The monks call for the releae of 2,000 political prisoners that include 20 monks and nuns along with other actions.

World leaders arrived in Pittsburgh Thursday for a G-20 summit meeting. While the official events began with a dinner at the city’s Phipps Conservatory and Botanical Gardens, several dignitaries—including Russian President Dmitry Medvedev, Australian Prime Minister Kevin Rudd and EU Commission President Jose Manuel Barroso—gave speeches in town earlier in the day.

Medvedev’s presentation was the most interactive. He took a few minutes to share some opening remarks with a group of journalists, students and invited Russian nationals from the University of Pittsburgh and Carnegie Mellon University and then took questions for about an hour.

When Medvedev was asked where he sees U.S.-Russian relations in five years, he responded: “I want them to be better than today,” and added that “today they are better than yesterday.”

The Russian president said that just one year ago, he thought the relationship between the two countries had cooled so much that it approached Cold War levels.

But, speaking highly of President Barack Obama’s habit of considering other views and his non-preachy manner, Medvedev said: “I am, on the whole, very comfortable communicating with the current president of the U.S.”

The police presence is massive throughout the city. Many businesses, particularly those in the central business district surrounding the convention center that will house delegate’s meetings Friday, have closed and few business professionals are venturing out as security measures make travel in and out of downtown challenging. That has created an unusual atmosphere in which most pedestrians are either law enforcement, journalists or protesters.

But by Friday morning, many local leaders were already celebrating the positive impact of the international media attention on the city.

Suzi Pegg, vice president of global marketing for the Pittsburgh Regional Alliance, said she¹s already received a call about a Danish company who saw the G-20 press coverage and is interested in doing business with Pittsburgh.

“I’ve got a good feeling that this is just a start,” she said.

So far, most demonstrations have been peaceful. However, Thursday afternoon police used the chemical agent OC to disperse a large crowd attempting a march from one of Pittsburgh’s eastern neighborhoods to the convention center. Few, if any, businesses sustained damage during that protest. Late Thursday night, another demonstration became more violent, as participants broke windows at a number of storefronts. Police made 42 arrests, plus 24 at various locations earlier in the day.

The owners of Pamela’s Diner, a locally owned establishment famous for its pancakes, was among those to sustain damage. When they heard the news, owners Michele Mazzella and Tim Blosat arrived at the restaurant at 10:30 p.m., stayed on site to clean up until 2 a.m., returned home briefly and were back to open for breakfast Friday morning. They have not slept.

“We’re here for the community regardless, seven days a week,” Blosat said. “The Pitt students have been really great this morning. Everyone who has come in couldn’t believe someone would attack us.”

In fact, one man, who identified himself only as a peaceful protester, stopped by the restaurant this morning and gave Blosat $20 to help pay for repairs.

On a near-term basis, however, the G-20 has proven to be a mixed bag for local businesses. Prior to the summit, many retailers and restaurant owners had hoped the influx of international visitors would be a welcome sales boost in what has been a difficult year.

The exceptions include taxi driver Jim Marosz, who says he¹s had several good shifts this week. On Thursday, he picked up two Kremlin Press reporters at the city’s baseball stadium, took them on a beer run and dropped them off at an area hotel. At his suggestion, the reporters bought a case of Yuengling Lager and another of Budweiser, to chase it down. They took a long time to decide, Marosz said, but the tip, “$35 for a $8.35 trip ” was worth it.

“Driving a cab is like playing the slot machines,” he said. “Keep playing and you¹re eventually gonna hit.” – Portfolio

]]> 4258 2009-09-29 21:37:46 2009-09-30 04:37:46 open open notes-from-the-g-20-hosts publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6240#comments wfw:commentRSS http://zikkir.com/business/6240/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6240 syndication_item_hash 95cf0577627c6d24d99839613d40c592 World Leader http://www.ethiopianreview.com/business/4257 Wed, 30 Sep 2009 04:39:06 +0000 http://zikkir.com/business/?p=6242 1
The U.S. steered the G-20 away from stricter executive pay caps backed by European leaders.

President Obama won a clear victory over European opposition on several fronts Friday at the meeting of G-20 leaders in Pittsburgh.

While he may still be wrangling with Congress over contentious issues such as health care and cap-and-trade energy policy, Obama and Treasury Secretary Timothy Geithner prevailed on such controversial issues as executive bonuses, raising bank capital, and reform of the voting structure of the International Monetary Fund.

Now the hard work of fleshing out general agreements into detailed policy initiatives will be sent back to teams of experts in national capitals and Basel, Switzerland, where the Bank for International Settlements helps draft bank regulations.

For example, the G-20 endorsed national regulatory oversight of executive bonuses at key financial firms, with pay tied to a bank’s capital and liquidity. France and Germany had been in favor of imposing strict pay caps on executives with international regulatory oversight to keep bankers from moving from one country to another to collect bigger pay packages. Although the European demands were papered over, Obama and Geithner manage to convince them that local limits on pay was still a significant accomplishment.

The G-20 backed Geithner’s less radical proposals for banks to avoid multiyear pay packages to executives. It also agreed that bonuses should be paid out over several years to avoid short-term risk taking and include clawbacks of incentive compensation when financial firms fail to produce positive results. The idea was to avoid large pay bonuses, as occurred at Merrill Lynch last year, when the company lost $27.6 billion

In another victory for the Obama team—it was the first time Obama has hosted an international summit—Geithner’s plan to force banks to increase capital was adopted, with a draft accord to be approved by the end of 2010 and full implementation achieved in 2012, which will meet industry demands for sufficient time to phase in the changes.

Some European nations opposed higher bank-capital requirements because their banks tend to have less reserves than U.S. banks and would have to raise more new capital. A new leverage measure of risk will be implemented by the Basel Committee on Banking Supervision, which will work out the precise details of the new international rules on capital. But it will be left up to individual national regulators to implement the changes, which gives countries like France a chance to water it down. The United States already uses a measure of leverage to determine the health of banks.

Perhaps the biggest victory for Obama was the acceptance of his plan to make the G-20, which includes developing countries like China, India, and Brazil, the center of economic discussions from here on out. “The old system of international economic cooperation is over,’ British Prime Minister Gordon Brown said. Henceforth, the G-20 would become “the premier economic organization for dealing with economic management around the world.”

The G-20 was started in 1999 at the finance-minister level, but until this year the G-8 group of industrial nations—the U.S., Britain, France, Germany, Italy, Canada, and Japan, plus Russia—had been the primary venue for economic summits. Now, the G-8 will continue to meet, but will focus on international security issues while the G-20 deals with economics matters.

Toward that end, Obama proposed making the IMF more representative of the new global economic order. Currently, industrial nations control 57 percent of the votes at the IMF, while developing countries control 43 percent. That will now be changed to an even 50-50 split. The Europeans will give up some of their votes.

Obama also managed to get the G-20 to consider naming the IMF to monitor global trade imbalances and to provide “peer review” to correct them. Obama’s main target is China, which had a $280 billion trade surplus with the U.S. last year. According to this agreement, exporting countries will be encouraged to stimulate domestic demand and reduce exports, while trade-deficit countries like the U.S. will take steps to increase savings. The savings rate in the U.S. has already increased because of the recession. – Portfolio

]]> 4257 2009-09-29 21:39:06 2009-09-30 04:39:06 open open world-leader publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6242#comments wfw:commentRSS http://zikkir.com/business/6242/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6242 syndication_item_hash ff1cd2b2fa0e8d8ad05e9f49b2a3f9e8 Open Kitchen http://www.ethiopianreview.com/business/4256 Wed, 30 Sep 2009 04:43:59 +0000 http://zikkir.com/business/?p=6244 1
Amanda Hesser and Merrill Stubbs of food52.

Amanda Hesser and Merrill Stubbs are looking for a few good recipes. More than a few, actually: 156, to be exact.

Even though they’re each experts in the kitchen—Hesser has been a food columnist for the New York Times for over a decade; Stubbs has worked for Cook’s Illustrated, the Times, and many others—they need your help. You see, they have a cookbook due out from HarperStudio next year, and they’ve built a website called food52 to gather and curate recipes for the book. Whatever Web 2.0 buzzwords you choose to describe it—Crowd-sourced cuisine? Aggregated appetizers? Choose-Your-Own-Cooking-Adventure?—the creators are aiming to use the tools of the Web to change the way cookbooks are created.

“We wanted to present this very simple idea,” Hesser said recently at a homey cafe in Boerum Hill, Brooklyn, which serves as her and Stubbs’ unofficial office. “Let’s build this cookbook together.”

At the same time, they aim to make a new kind of food site, one she describes as “more than a vast database of recipes.” “A food site that felt curated, that felt like there are people behind it,” she explained.

“When we started thinking about this, I think probably a lot of people would’ve thought we were crazy to start a business with the economic climate the way it was,” Stubbs said. “But actually we thought it was a great time to start a business online.”

In that impulse they’re not alone. Other journalists have chosen to start their own Web businesses in the teeth of the recession, going without the safety nets of the large (though suddenly shaken) media companies that have tended to support them. Take Sharon Waxman, the former Hollywood correspondent for the New York Times who launched her own entertainment-business news site earlier this year. Just last week, her site, The Wrap, inked a content-sharing partnership deal with Microsoft.

A food- and cooking-oriented site may also prove to be a good idea for a very bad moment in time. According to a recent Washington Post report, U.S. consumers bought 7.5 million cooking and entertaining books in the first nine months of 2009. Despite this year’s economic downturn, an editorial in the most recent issue of Gourmet Retailer, a trade publication, foresees the quality food market “poised for a renaissance” since “if one is to forgo a European vacation or a new car, then artisan cheeses, extra-virgin olive oil, and high-end cookware don’t seem so extravagant.” (Taking that triumphalism just one step too far, the editorial also proclaims, “Copper and stainless steel are the new black…”)

“There are many excellent food sites online—and an increasing number of them,” Stubbs adds. “But interestingly, there isn’t really a space that studies the talent and knowledge of home chefs.”

Food52—Hesser says the name came partly out desperation searching for a domain name not yet taken and because she and Stubbs like names like Area 51 and Matchbox 20—has been in development for nine months. After a dozen weeks of closed membership, it’s now in beta with just over 3,000 registered members who can submit recipes, discuss others’ work, and vote on the weekly finalists chosen by the site’s founders to narrow down the 156 recipes needed for the book. Two recipes will be chosen by users each week along with one wild card picked by Hesser and Stubbs.

The site, which has no advertising, is funded with the advance the two creators got from HarperStudio for two cookbooks. With just enough bells and whistles—video, community, most-popular chart, a blog—to be both stickier and more complicated than most book sites, Hesser and Stubbs needed to hire a small staff to keep it running. They’ve already attracted some partners, like kitchenwares maker OXO, which awards prize packages to winners and finalists in the weekly recipe contests, and Chambers Street Wines, a New York-based wine shop that offers users discounted wine pairings for some recipes. (A planned online store, which would’ve sold tools selected by Hesser and Stubbs, was put on hold before launch.) Paid subscriptions—the suddenly pressing concern for all online-content creators—have been considered, but there are no plans at the moment since Hesser and Stubbs are hoping to build an audience that’s heavily invested in the site.

There are also plans for a Tournament of Cookbooks to crown this year’s best titles, with input from celebrity judges like Gwyneth Paltrow and live panels in which food issues will be discussed. “It seems like people are yearning for more of a forum where they can discuss more of these topics,” Stubbs says.

Both insist that these events—like the site—are less about the traditional approach of experts telling readers how to do something and more about creating an open exchange. “A lot of old food media was top-down,” Hesser says. “And that’s what we’re trying to do, acknowledge the shift. Let’s all share ideas.”

The two women have worked closely with one another for the last five years compiling a 1,200-recipe New York Times cookbook for W.W. Norton, so they tend to finish one another’s sentences and feed off each other with ease.

“Yes, we know a lot,” Stubbs said. “But we’re not here to teach so much as spread other people’s ideas.

“As cooks, we acknowledge we have a lot to learn.” – Portfolio.com

]]> 4256 2009-09-29 21:43:59 2009-09-30 04:43:59 open open open-kitchen publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6244#comments wfw:commentRSS http://zikkir.com/business/6244/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6244 syndication_item_hash e320fa9884448fbc57c403b67bf6f12c Companies Go Shopping http://www.ethiopianreview.com/business/4255 Wed, 30 Sep 2009 04:46:03 +0000 http://zikkir.com/business/?p=6246 1
Xerox CEO Ursula Burnsand ACS President and CEO Lynn Blodgett, come together as one of two multi-billion mergers announced Monday.

It’s only natural.

After a long year of gloomy news and falling markets, companies are getting out and shopping.

The days of multibillion-dollar Mondays appear to be back, with new mergers announced just about every week this month. Today’s big deals added up to $13 billion worth of activity, as drug company Abbott Laboratories announced its purchase of Belgian firm Solvay SA’s drug business, and Xerox announced its purchase of Affiliated Computer Services Inc.

“History just repeats itself over and over and over,” said Bob Profusek, an attorney with Wall Street law firm Jones Day. After a major market correction, as we’ve seen in the last year, “They’re followed eventually by very substantial upticks in M&A activity. It’s really a function of the capital markets.”

With stocks moving higher, acquisition targets don’t feel they’re selling out at fire-sale prices, and buyers are eager to strike before the prices rise even higher.

Profusek said after an eerily quiet July, the increased activity of the past month has been of a certain sort—either companies with large balance sheets able to fund their own purchases or private equity firms picking up distressed assets.

“I wouldn’t say it’s rocking and rolling yet, but it’s getting close,” Profusek said. “We’re enthusiastic. But until the banks get more willing to lend, it’s going to be dominated by the giant deals or distressed.”

The value of U.S. deals announced so far in September is $48.6 billion, compared to $28.14 billion in August, according to Dealogic.

Where you’re not seeing as much activity, yet, is in the midsize deal that would need financing from banks—the $300 million to $1 billion deal with heavy bank backing.

The big mergers have ranged across sectors. But they have something in common. Most have been meant to strengthen companies in some key strategic areas, and at least some have ranked among the biggest deals ever done by the companies in question.

“It’s a strategic market,” Profusek said.

Take Abbott Laboratories’ $6.6 billion deal to buy Solvay’s drug business. The cash deal makes Abbott, which has been trying to diversify away from the pharmaceutical business by getting into medical devices, even more dependent upon drugs. But it broadens the range of drugs Abbott can count on to contribute to its bottom line. Investors have been concerned about how Abbott can follow up on the success of Humera, a rheumatoid arthritis drug that has accounted for $4.5 billion in sales last year, about 15 percent of Abbott’s total revenue.

The Solvay deal brings Abbott new drugs for hypertension and Parkinson’s disease, and sole ownership over two other pharmaceuticals—the cholesterol treatments Tricor and TriLipix—Abbott has been selling with Solvay. “If consummated, this deal would lower Abbott’s dependence on its lead drug Humira,” Wells Fargo analyst Larry Biegelsen told the Reuters last week. All of that apparently made it worth it to Abbott to do the second-biggest deal in its history; its first was a $6.9 billion deal in 2000 to buy Knoll Pharmaceuticals.

Or consider the other deal announced Monday, the $6.4 billion cash-and-stock acquisition by Xerox of Affiliated Computer Services Inc. The deal—a 33.6 percent premium over ACS’s Friday closing price and Xerox’s largest-ever acquisition—expands Xerox from a copier company into outsourcing and data-center management. That positions the company to take on rival Hewlett-Packard in the active tech-services market.

HP boosted its presence in that market with last year’s purchase of Electronic Data Systems Corp. Xerox and ACS executives on a conference call said they expect revenue to grow as a result of the deal. They expect ACS to take over at least some of the services Xerox now performs for clients, Dow Jones Newswires reports. “The lines between business process and document management are blurring,” Xerox CEO Ursula Burns said.

Dell has also made its own strategic move in the area of data-center management and services in the past few weeks, as it positions itself to take on such players as HP and Computer Sciences Corp. On September 21, Dell agreed to pay a 68 percent premium to Perot Systems shareholders in a $3.9 billion deal to get hold of that company’s expertise in the services business. The deal was Dell’s biggest ever, but was seen as a move by the hardware maker to catch up with competitors like HP that have been using the recession and big piles of cash to move beyond their core businesses.

While HP was moving into the services business with its purchase of EDS, Oracle was moving into the hardware business with its agreement earlier this year to buy Sun Microsystems for $7.4 billion. With competitors expanding, Dell had to do the same. “What they have today is just not enough,” Kaijun Zhan, an information-technology executive at software maker Cadence Design Systems Inc., told the Wall Street Journal.

Another tech deal, Adobe’s September 15 announcement that it was buying Omniture for $1.8 billion—a 45 percent premium over that company’s stock—can also be seen in the light of a strategic move. Adobe’s core business is helping people create, share, and read digital material. Omniture’s software helps companies track how their websites are viewed. Sales have lagged for Adobe’s latest version of its Creative Suite, so the purchase of Omniture is seen as a play to bring in additional revenue.

Then there are the deals that kicked off this month’s wave of merger announcements, the August 31 announcements that the Walt Disney Company is buying Marvel Entertainment and oilfield-services player Baker Hughes is buying B.J. Services Co. Together, those deals were worth all the other deals in August put together.

On that one Monday, Disney announced it was buying Marvel for $4 billion, a 30 percent premium, in a deal that gives Disney access to Marvel’s rich trove of movie-friendly characters. Those 5,000 characters could be the basis for more movies, games, and theme-park rides.

In the grittier world of oilfield services, Baker Hughes, looking to strengthen its ability to draw oil and natural gas from shale and offer one-stop shopping for oil and gas companies, announced it was buying B.J. Services Co. for $4.9 billion in cash and stock. The deal allows Baker Hughes, the nation’s No. 4 oilfield-services company, to better compete with Halliburton Co. and Schlumberger Ltd. on projects that require multiple services.

Profusek sees this month as just the beginning. As banks loosen the reins, there will likely be more middle-market deals. It won’t be like merger-crazy 2006, but it will be a healthier market. And, he said, a weak dollar is drawing plenty of interest from foreign firms in buying U.S. companies. That may well be the next wave.

“There is a lot of interest among Europeans and Asians in American assets,” he said. “We’re working with a lot of non-U.S. clients now. I think you’re going to see a ton of that in the fourth (quarter).” – Portfolio.com

]]> 4255 2009-09-29 21:46:03 2009-09-30 04:46:03 open open companies-go-shopping publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6246#comments wfw:commentRSS http://zikkir.com/business/6246/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6246 syndication_item_hash 836f5a852d738ce226e0644d0db72aa4 Ten on Top http://www.ethiopianreview.com/business/4254 Wed, 30 Sep 2009 04:48:15 +0000 http://zikkir.com/business/?p=6249 1
After getting battered by killer hurricanes, residents of New Orleans have something to smile about: being in a city with the highest per-capita income in the nation.

The following is a list of the top-10 cities ranked by income growth. (To see the full list of the top 100 metro areas, click here.)

1. New Orleans

Hurricanes Katrina and Rita dealt New Orleans a double whammy in 2005, but the city is on the rebound. Income levels have soared, in part because the post-hurricane exodus of poor people has artificially inflated the area’s PCI. No market has posted a bigger increase since 2003. Growth score: 76.7 points.

Per-capita income (PCI):

• 2008: $44,136

• 2003: $29,244

• 1993: $19,762

• 1983: $12,404

Income growth:

• 2003 to 2008 (5 years): 50.9 percent

• 1993 to 2008 (15 years): 123.3 percent

• 1983 to 2008 (25 years): 255.8 percent

Other stats

Metro population (2008): 1,134,029

Private-sector employment (June 2009): 440,200

Employment growth (2008 to 2009): -2.0 percent

2. Oklahoma City

Oklahoma City has been an oasis of stability during the recession. Its midyear unemployment rate of 6.0 percent was vastly better than the nation’s 9.5 percent. And its income growth rate has been solid. Oklahoma City is one of just 12 markets that have doubled their PCIs since 1993. Growth score: 51.7 points.

Per-capita income (PCI):

• 2008: $40,942

• 2003: $28,909

• 1993: $18,996

• 1983: $13,254

Income growth:

• 2003 to 2008 (5 years): 41.6 percent

• 1993 to 2008 (15 years): 115.5 percent

• 1983 to 2008 (25 years): 208.9 percent

Other stats

Metro population (2008): 1,206,142

Private-sector employment (June 2009): 454,000

Employment growth (2008 to 2009): -1.6 percent

3. Bridgeport-Stamford, Connecticut

The nation’s most affluent market keeps getting wealthier. Bridgeport-Stamford’s PCI of $82,266 is $20,500 larger than that of the runner-up, San Francisco-Oakland. And its income growth rate during the past five years has been the fourth-best in the nation. Growth score: 48.9 points.

Per-capita income (PCI):

• 2008: $82,266

• 2003: $59,691

• 1993: $38,407

• 1983: $19,390

Income growth:

• 2003 to 2008 (5 years): 37.8 percent

• 1993 to 2008 (15 years): 114.2 percent

• 1983 to 2008 (25 years): 324.3 percent

Other stats

Metro population (2008): 895,030

Private-sector employment (June 2009): 363,500

Employment growth (2008 to 2009): -3.6 percent

4. Tulsa, Oklahoma

Economic conditions aren’t as upbeat in Tulsa as in nearby Oklahoma City, but they’re close. Tulsa’s midyear unemployment rate was a tad higher at 6.8 percent, and its 15-year income growth rate is a touch lower at 109.7 percent. But the latter is still seventh-best in America. Growth score: 45.1 points.

Per-capita income (PCI):

• 2008: $43,330

• 2003: $30,494

• 1993: $20,667

• 1983: $13,184

Income growth:

• 2003 to 2008 (5 years): 42.1 percent

• 1993 to 2008 (15 years): 109.7 percent

• 1983 to 2008 (25 years): 228.7 percent

Other stats

Metro population (2008): 916,079

Private-sector employment (June 2009): 374,700

Employment growth (2008 to 2009): -2.7 percent

5. Houston

No U.S. market has boosted employment more effectively during the past half-decade than Houston, which has added 224,100 jobs since 2004. The consequent impact on PCI has been obvious. Houston is one of only five markets with a five-year income growth rate above 35 percent. Growth score: 44.2 points.

Per-capita income (PCI):

• 2008: $48,259

• 2003: $35,140

• 1993: $22,625

• 1983: $14,327

Income growth:

• 2003 to 2008 (5 years): 37.3 percent

• 1993 to 2008 (15 years): 113.3 percent

• 1983 to 2008 (25 years): 236.8 percent

Other stats

Metro population (2008): 5,728,143

Private-sector employment (June 2009): 2,184,900

Employment growth (2008 to 2009): -3.5 percent

6. El Paso, Texas

Income levels are sadly depressed in Texas’ western outpost. Only three of the nation’s 100 biggest markets are below El Paso’s anemic PCI of $27,944. But the good news is that things are changing. The five-year income growth rate in El Paso is the 10th-best in America. Growth score: 36.2 points.

Per-capita income (PCI):

• 2008: $27,944

• 2003: $21,099

• 1993: $13,748

• 1983: $8,546

Income growth:

• 2003 to 2008 (5 years): 32.4 percent

• 1993 to 2008 (15 years): 103.3 percent

• 1983 to 2008 (25 years): 227.0 percent

Other stats

Metro population (2008): 742,062

Private-sector employment (June 2009): 208,500

Employment growth (2008 to 2009): -2.1 percent

7. San Francisco-Oakland

San Francisco-Oakland’s PCI of $61,747 ranks second nationally. The only other place topping $59,000 is leader Bridgeport-Stamford, Connecticut. Long-range growth has also been impressive. San Francisco-Oakland’s PCI has soared 246.4 percent in 25 years, a rate exceeded by just six markets. Growth score: 27.4 points.

Per-capita income (PCI):

• 2008: $61,747

• 2003: $46,732

• 1993: $29,324

• 1983: $17,823

Income growth:

• 2003 to 2008 (5 years): 32.1 percent

• 1993 to 2008 (15 years): 110.6 percent

• 1983 to 2008 (25 years): 246.4 percent

Other stats

Metro population (2008): 4,274,531

Private-sector employment (June 2009): 1,631,100

Employment growth (2008 to 2009): -5.3 percent

8. Baton Rouge, Louisiana

Baton Rouge was not hurt as badly as New Orleans by 2005’s monster storms. Its comeback consequently has not been quite as strong, yet still impressive enough. PCI has risen 34.9 percent in Baton Rouge in the past half-decade. Only five markets, including New Orleans, have done better. Growth score: 27.2 points.

Per-capita income (PCI):

• 2008: $35,649

• 2003: $26,418

• 1993: $18,465

• 1983: $11,333

Income growth:

• 2003 to 2008 (5 years): 34.9 percent

• 1993 to 2008 (15 years): 93.1 percent

• 1983 to 2008 (25 years): 214.6 percent

Other stats

Metro population (2008): 774,327

Private-sector employment (June 2009): 298,900

Employment growth (2008 to 2009): -0.2 percent

9. Birmingham, Alabama

Birmingham has been a quiet success story. Its income growth rates haven’t been exceptional, yet still have surpassed most markets. It ranks 14th for the 1993 to 2008 span, and 19th during the most recent half-decade. The end res—ninth place in the overall standings. Growth score: 26.8 points.

Per-capita income (PCI):

• 2008: $40,379

• 2003: $31,362

• 1993: $20,272

• 1983: $11,140

Income growth:

• 2003 to 2008 (5 years): 28.8 percent

• 1993 to 2008 (15 years): 99.2 percent

• 1983 to 2008 (25 years): 262.5 percent

Other stats

Metro population (2008): 1,117,608

Private-sector employment (June 2009): 429,500

Employment growth (2008 to 2009): -4.0 percent

10. Boston

Boston has lost 68,500 jobs since mid-2008, but the news isn’t all bad. The midyear jobless rate of 8.3 percent was better than the nation’s 9.5 percent. And Boston’s 25-year PCI growth of 273.1 percent is virtually unsurpassed. Only Bridgeport-Stamford, Connecticut, has done better in that span. Growth score: 25.9 points.

Per-capita income (PCI):

• 2008: $55,023

• 2003: $42,794

• 1993: $27,138

• 1983: $14,747

Income growth:

• 2003 to 2008 (5 years): 28.6 percent

• 1993 to 2008 (15 years): 102.8 percent

• 1983 to 2008 (25 years): 273.1 percent

Other stats

Metro population (2008): 4,522,858

Private-sector employment (June 2009): 2,148,400

Employment growth (2008 to 2009): -3.1 percent
- Portfolio

]]> 4254 2009-09-29 21:48:15 2009-09-30 04:48:15 open open ten-on-top publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6249#comments wfw:commentRSS http://zikkir.com/business/6249/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6249 syndication_item_hash 880eb620254a2ca5bb61b8d56d98bfd7 Bottom Dwellers http://www.ethiopianreview.com/business/4253 Wed, 30 Sep 2009 04:49:28 +0000 http://zikkir.com/business/?p=6251 1
Provo, Utah, brings up the rear as the U.S. city with the slowest long-term per-capita income growth.

The following is a list of the bottom-10 cities ranked by income growth. (To see the full list of the top 100 metro areas, click here.)

1. Provo, Utah

Gloomy economic news abounds in Provo, which has lost 6 percent of its jobs since mid-2008. Only one of America’s 100 biggest markets is below Provo’s PCI of $21,758: McAllen-Edinburg, Texas ($19,377). And none has seen slower income growth than Provo’s five-year rate of 9.6 percent. Growth score: -44.0 points.

Per-capita income:

• 2008: $21,758

• 2003: $19,846

• 1993: $13,807

• 1983: $7,979

Income growth:

• 2003 to 2008 (5 years): 9.6 percent

• 1993 to 2008 (15 years): 57.6 percent

• 1983 to 2008 (25 years): 172.7 percent

Other stats

Metro population (2008): 540,820

Private-sector employment (June 2009): 151,400

Employment growth (2008 to 2009): -6.0 percent

2. Riverside-San Bernardino, California

Riverside-San Bernardino is still paying the price for Southern California’s now-deflated real-estate bubble. Recent numbers are dismal, such as midyear unemployment of 13.7 percent and 15-year income growth of 61.9 percent. The latter is the sixth-worst rate in America. Growth score: -39.5 points.

Per-capita income:

• 2008: $29,016

• 2003: $24,737

• 1993: $17,918

• 1983: $12,485

Income growth:

• 2003 to 2008 (5 years): 17.3 percent

• 1993 to 2008 (15 years): 61.9 percent

• 1983 to 2008 (25 years): 132.4 percent

Other stats

Metro population (2008): 4,115,871

Private-sector employment (June 2009): 924,600

Employment growth (2008 to 2009): -7.5 percent

3. Stockton, California

Four of the bottom-10 markets are in the interior portion of California, including Stockton. Its PCI ($29,178) is the seventh-worst among the nation’s 100 biggest metros. And its 25-year income growth rate is the third-worst, beating only Bakersfield and Riverside-San Bernardino, California. Growth score: -36.0 points.

Per-capita income:

• 2008: $29,178

• 2003: $24,883

• 1993: $18,365

• 1983: $11,786

Income growth:

• 2003 to 2008 (5 years): 17.3 percent

• 1993 to 2008 (15 years): 58.9 percent

• 1983 to 2008 (25 years): 147.6 percent

Other stats

Metro population (2008): 672,388

Private-sector employment (June 2009): 159,600

Employment growth (2008 to 2009): -4.0 percent

4. Atlanta

Atlanta was flying high until the recession gave it a hard smack. Its unemployment rate has climbed perilously into double digits, and income growth has slowed dramatically. Atlanta’s PCI has expanded just 15.1 percent since 2003. Only four markets have done worse. Growth score: -35.0 points.

Per-capita income:

• 2008: $37,655

• 2003: $32,724

• 1993: $22,887

• 1983: $12,850

Income growth:

• 2003 to 2008 (5 years): 15.1 percent

• 1993 to 2008 (15 years): 64.5 percent

• 1983 to 2008 (25 years): 193.0 percent

Other stats

Metro population (2008): 5,376,285

Private-sector employment (June 2009): 1,968,900

Employment growth (2008 to 2009): -6.4 percent

5. Toledo, Ohio

Toledo is in the heart of the Midwest’s automotive belt, once the ticket to prosperity. No longer. Toledo has lost 31,900 jobs in the past five years, and income levels are stagnant. Only Provo, Utah, and Detroit have posted five-year PCI growth rates slower than Toledo’s 13.7 percent. Growth score: -33.5 points.

Per-capita income:

• 2008: $33,856

• 2003: $29,785

• 1993: $21,257

• 1983: $12,631

Income growth:

• 2003 to 2008 (5 years): 13.7 percent

• 1993 to 2008 (15 years): 59.3 percent

• 1983 to 2008 (25 years): 168.0 percent

Other stats

Metro population (2008): 649,104

Private-sector employment (June 2009): 252,000

Employment growth (2008 to 2009): -8.5 percent

6. Bakersfield, California

Here’s another interior California metro struggling with a recessionary economy. Only eight of the nation’s 100 largest markets have PCIs below $30,000. Bakersfield is in that unhappy group, and it’s also among the 17 markets with five-year income growth rates below 19 percent. Growth score: -31.7 points.

Per-capita income:

• 2008: $27,713

• 2003: $23,309

• 1993: $17,386

• 1983: $12,082

Income growth:

• 2003 to 2008 (5 years): 18.9 percent

• 1993 to 2008 (15 years): 59.4 percent

• 1983 to 2008 (25 years): 129.4 percent

Other stats

Metro population (2008): 800,458

Private-sector employment (June 2009): 172,800

Employment growth (2008 to 2009): -3.2 percent

7. Dayton, Ohio

Dayton is just 150 miles from Toledo, and its story is remarkably similar. The downturn in heavy manufacturing has harmed both markets. Dayton’s midyear unemployment rate was a steep 12.1 percent. Its income growth rate, on the other hand, has been a sluggish 15.0 percent since 2003. Growth score: -30.6 points.

Per-capita income:

• 2008: $34,724

• 2003: $30,196

• 1993: $21,048

• 1983: $12,549

Income growth:

• 2003 to 2008 (5 years): 15.0 percent

• 1993 to 2008 (15 years): 65.0 percent

• 1983 to 2008 (25 years): 176.7 percent

Other stats

Metro population (2008): 836,544

Private-sector employment (June 2009): 319,300

Employment growth (2008 to 2009): -4.4 percent

8. Fresno, California

Back to California. Fresno is yet another victim of the state’s economic dive. It has lost 10,200 jobs since mid-2008, pushing unemployment to 15.2 percent. Raises are scarce for those workers lucky enough to still have jobs. PCI has grown just 17 percent in Fresno in five years. Growth score: -30.6 points.

Per-capita income:

• 2008: $28,614

• 2003: $24,450

• 1993: $17,942

• 1983: $11,551

Income growth:

• 2003 to 2008 (5 years): 17.0 percent

• 1993 to 2008 (15 years): 59.5 percent

• 1983 to 2008 (25 years): 147.7 percent

Other stats

Metro population (2008): 909,153

Private-sector employment (June 2009): 223,900

Employment growth (2008 to 2009): -4.4 percent

9. Greensboro, North Carolina

The recession has hit Greensboro with unexpected force, slamming the brakes on income growth. Its PCI of $34,263 is only 62.1 percent larger now than in 1993. Only six U.S. markets have experienced slower expansion during that span, including Provo, Toledo, and four metros in California. Growth score: -29.5 points.

Per-capita income:

• 2008: $34,263

• 2003: $28,756

• 1993: $21,136

• 1983: $11,942

Income growth:

• 2003 to 2008 (5 years): 19.2 percent

• 1993 to 2008 (15 years): 62.1 percent

• 1983 to 2008 (25 years): 186.9 percent

Other stats

Metro population (2008): 705,684

Private-sector employment (June 2009): 303,500

Employment growth (2008 to 2009): -6.3 percent

10. Phoenix

Phoenix seemed golden until real estate prices hit the skids. Jobs began disappearing—135,100 in the past year—and incomes started shrinking. Phoenix’s PCI slipped 1.4 percent from 2007 to 2008, the nation’s worst one-year loss. The only other place to drop more than 1 percent was Boise. Growth score: -29.0 points.

Per-capita income:

• 2008: $34,675

• 2003: $29,343

• 1993: $19,724

• 1983: $12,810

Income growth:

• 2003 to 2008 (5 years): 18.2 percent

• 1993 to 2008 (15 years): 75.8 percent

• 1983 to 2008 (25 years): 170.7 percent

Other stats

Metro population (2008): 4,281,899

Private-sector employment (June 2009): 1,492,900

Employment growth (2008 to 2009): -8.3 percent
- Portfolio

]]> 4253 2009-09-29 21:49:28 2009-09-30 04:49:28 open open bottom-dwellers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6251#comments wfw:commentRSS http://zikkir.com/business/6251/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6251 syndication_item_hash eeb1ab3d756cce673b66f6780599dc53 The Payday Economy http://www.ethiopianreview.com/business/4252 Wed, 30 Sep 2009 04:50:24 +0000 http://zikkir.com/business/?p=6253 1
After two devastating hurricanes, New Orleans now finds itself with the nation’s best record of long-term per-capita income growth.

New Orleans has gyrated like an economic yo-yo in recent years, swinging wildly from one extreme to the next.

It reached a high point in June 2005. A Bizjournals study released that month indicated that per-capita income was growing at a faster pace in New Orleans than in any other U.S. metropolitan area.

But Hurricanes Katrina and Rita slammed into the city in August and September 2005, devastating the local economy. A subsequent Bizjournals report in June 2007 found a total reversal. Per-capita income was shrinking more rapidly in New Orleans than anywhere else.

Another two years have now passed—and another dramatic change has occurred.

New Orleans again is on top, enjoying the nation’s best record of long-term income growth, according to a new Bizjournals analysis.

Bizjournals combed through 25 years of federal income data for the nation’s 100 biggest metropolitan areas, covering the span from 1983 through 2008. The study focused on per-capita income (PCI), a key indicator of earning power and economic vitality, based on figures compiled by the U.S. Bureau of Economic Analysis.

The turnaround in New Orleans is illuminated by a comparison of income levels at the beginning and end of the 25-year study period.

Personal income averaged $12,404 in New Orleans in 1983, falling 2 percent below the $12,618 U.S. norm for that year. But the local figure soared to $44,136 by 2008, putting it 11.5 percent above the national per-capita income of $39,582.

PCI is defined as the average amount of money received by each resident of a given area in a given year. It encompasses such diverse sources of income as salaries, interest payments, dividends, rental income, and government checks.

The runners-up in Bizjournals’ rankings are four markets that have managed to elevate their income levels during the past quarter-century without as much drama as New Orleans, or as much fanfare—Oklahoma City; Bridgeport-Stamford, Connecticut; Tulsa; and Houston.

At the opposite end of the standings is Provo, Utah, the U.S. market with the worst record of long-term income growth.

Provo’s PCI, for example, has increased just 57.6 percent during the past 15 years, the slowest rate for any of the 100 markets in the study. The comparable growth rate in New Orleans has been more than twice as fast: 123.3 percent.

The sharp upswing in New Orleans is partly attributable to the return of its economic momentum—the same momentum responsible for its No. 1 ranking in income growth prior to the monster storms of 2005.

But Katrina and Rita have also played a statistical role, albeit unexpectedly. A disproportionate number of people displaced by the two hurricanes were poor. Their departure from New Orleans—whether permanent or temporary—has helped to boost the area’s average income.

The bottom of the income rankings is dominated by Western markets, including four from California, as well as Provo and Phoenix. All have been hurt by declines in real estate prices the past couple of years.

California’s laggards—Riverside-San Bernardino, Stockton, Bakersfield, and Fresno—are all located in the state’s interior, which historically has grown more slowly than the metros along the Pacific Coast.

Two other members of the bottom 10—Toledo and Dayton—are located in Ohio, which continues to be plagued by slumps in its automaking and heavy-manufacturing sectors. – Portfolio

]]> 4252 2009-09-29 21:50:24 2009-09-30 04:50:24 open open the-payday-economy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6253#comments wfw:commentRSS http://zikkir.com/business/6253/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6253 syndication_item_hash c03158fe7af0f67d97da138687be2edc A Cautious Kansas City Christmas http://www.ethiopianreview.com/business/4251 Wed, 30 Sep 2009 04:51:26 +0000 http://zikkir.com/business/?p=6255 1
Carol Keplinger remains hopeful about her Gold Crown store’s holiday sales season.

Santa probably won’t deliver recordbreaking sales growth this year, but Carol Keplinger talks about the coming holiday season with the enthusiasm of a kid on Christmas morning.

She’s been getting wrapping paper, cards, and other holiday products from Hallmark Cards Inc. and is in the process of displaying them in her Gold Crown store, Timeless Traditions Inc. in Overland Park, Kansas.

But an early forecast—portending a so-so shopping season—may dampen retailers’ holiday spirits. November through January retail sales, excluding auto and gasoline sales, will be about $809 billion, flat compared with the same period a year ago, Deloitte LLP predicted on September 21.

Last year, holiday sales fell 2.4 percent, the first drop since Deloitte began analyzing the U.S. Commerce Department data in 1967.

So Keplinger has joined many retailers who, sensing caution among consumers, are keeping inventories lean so they aren’t forced into deep postseason discounts that cut into profits.

In preparation for her crucial season—Keplinger’s store does about 40 percent of its annual sales in the fourth quarter— she has narrowed her vendor list to the best ones, and she sends customers more emails about sales.

But what has her excited is that customers, some of whom have been starting holiday shopping earlier than usual, seem drawn to more thoughtful, though perhaps less expensive, gifts—maybe a candle in someone’s favorite scent, or a whimsical WillowTree figurine whose description matches a relationship.

“We feel like the trend has changed some over the last year in that people are buying gifts that are more meaningful to the relationship,” Keplinger said. “They don’t just go out and buy something to cross that person off their list.”

Whatever shoppers do, the overall results will hold interest for more than just retailers and vendors. Any growth in holiday sales would show confidence that the economy was bottoming out; flat results would signal perhaps a more drawn-out recovery; and a drop would be concerning, said Julius Madas, executive vice president of Intrust Bank.

“The consumer certainly represents the largest component of our economy, and right now their willingness to spend money and perhaps feel a little more confident about the outlook is going to be a real key indicator for us,” he said.

Deloitte said tighter credit, high unemployment, and housing foreclosures still weigh on consumers, who are saving more and paying down debt. Spending could get a boost if gas prices stay steady, home values keep getting stronger, and the stock market continues to improve, Deloitte said.

Next year’s holiday season has a much better chance of being a good one than this year’s, said John Wagner Jr., president of Wagner Industries Inc.

His third-party logistics business is down for this time of year, when freight traditionally picks up ahead of the holidays. Nationwide, the industry’s revenue is expected to fall 7 percent this year, to $118 billion, according to Armstrong & Associates Inc.

But Wagner said that if during the next 60 days “consumer confidence starts to soar and retailers start seeing some sales, it’s likely (retailers will) start placing some reorders with their vendors.”

The Conference Board said September 21 that its Leading Economic Index rose 0.6 percent in August, building on rises of 0.9 percent in July and 0.8 percent in June. The index had fallen for 20 months since July 2007, the most extended decline since the mid-1970s, the Conference Board said, adding that the recession appears to be bottoming out, though the form recovery may take isn’t clear.

That uncertainty seems to have made many retailers hesitant to make buying decisions, said Scott King, CEO of retail marketing services firm Kendal King Group Inc. Last year, the recession escalated after many holiday plans already had been set, leaving retailers holding the bag.

“This year, the trend we’re seeing with retailers in general is that they’re erring on the side of caution,” he said.

As usual, the holiday season will create winners and losers, with discount stores likely to win, electronics remaining hot, and trendy toys and games probably doing well, King predicted.

A flat sales year would be a victory, he said, and 1 percent or 2 percent growth would be “a screaming victory.”

Retailers’ tactic of paring inventories could help some consumer-products makers because retailers will have to replenish their stores somewhat to meet holiday demand.

That observation prompted Deutsche Bank analyst Jonathan Goldberg to upgrade Garmin Ltd. stock in mid-September. He noted that retailers seemed to be trying to make up for keeping inventories too slim earlier in the year and raised his 2009 earnings estimate to $2.74 a share, up from $2.47 a share.

A different kind of company also may get a boost this holiday season—from frugal, crafty consumers.

Karen Roark, owner of Urban Arts and Crafts, said she’s seen a trend of more people making gifts. She’s arranged her store at Briarcliff Village with examples of attainable crafts—key chains or hand warmers—instead of more time-consuming projects.

“They’re finding smaller projects that don’t take as much time but are still memorable,” she said. – Portfolio

]]> 4251 2009-09-29 21:51:26 2009-09-30 04:51:26 open open a-cautious-kansas-city-christmas publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6255#comments wfw:commentRSS http://zikkir.com/business/6255/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6255 syndication_item_hash 0ae9120507b4c6470ee7af93dff2f3fa Business Brawl http://www.ethiopianreview.com/business/4278 Wed, 30 Sep 2009 06:48:37 +0000 http://zikkir.com/business/?p=6257 1
Greenhouse gas emitted by coal plants like this one could be regulated. And that has businesses getting ready for a fight—with each other.

If you think the fight over health care legislation has been something to behold, just wait until debate over climate-change legislation gets under way in earnest.

Businesses are already dividing, and some of the biggest are taking some pretty large steps to stake out positions on legislation or regulations that would cap emissions of greenhouse gasses and set up a market to trade among corporations the rights to pollute.

“Energy, at this early stage—it’s an area where there’s just sharper cleavages among companies,” said Matthew J. Slaughter, associate dean of the Tuck School of Business at Dartmouth College. “And that’s different from many business issues.”

So far, it’s the utilities that are making the most noise. And they’re not on the side you may think they would be. These utilities favor legislation that has passed the House of Representatives and is sitting in the Senate awaiting the end of the health care debate. They’re voicing their concern by walking away from big business lobbies that don’t support climate-change action.

John Rowe, CEO of Exelon Corporation, one of the nation’s largest electric utilities, became the latest in a string of CEOs to say his company would quit the U.S. Chamber of Commerce—one of the biggest business lobbying groups with, over 3 million members—over positions the Chamber has taken toward climate change.

The Chamber has said it doesn’t oppose the principle of tackling global warming, but is concerned about the cost of such a change. And it has been particularly vocal in opposing an Environmental Protection Agency finding that, if Congress doesn’t act on climate change, the agency has the authority to regulate greenhouse-gas emissions. That finding arose from a Supreme Court ruling giving the EPA the order to treat greenhouse gasses as a pollutant under the Clean Air Act. The Supreme Court ruling was made during the Bush era, but the EPA didn’t make its finding until the beginning of the Obama administration.

What set off the latest wave of anger was a Chamber official’s call for a “Scopes Monkey Trial” about the science of climate change, a statement that Chamber officials have since repudiated.

Exelon’s CEO begged to differ with the Chamber’s position. “The carbon-based free lunch is over,” Rowe said. “Breakthroughs on climate change and improving our society’s energy efficiency are within reach.”

Rowe’s Chicago-based company is the nation’s largest provider of nuclear power, and a large portion of its electricity also comes from natural-gas plants. Natural gas is the cleanest burning of the fossil fuels, and nuclear power doesn’t emit any greenhouse gasses. So it’s not as much of a stretch as it may seem for Exelon to support a lower-carbon society. It could conceivably be a winner in such a society—able to trade emissions permits for a profit with heavier greenhouse-gas emitters.

But Exelon wasn’t the first of the big utilities to depart the Chamber.

PG&E Corp. CEO Peter Darbee last week launched a letter to Chamber CEO Thomas Donahue criticizing the Chamber’s recent positions on climate change and announcing that his company was leaving the organization. “Extreme rhetoric and obstructionist tactics seem increasingly to mark the Chamber’s public stance on this issue,” Darbee wrote. “PG&E considers climate change to be among the most serious issues ever for our company, our country, and the world. With this in mind, after careful consideration, we have come to the difficult conclusion that our differences over this issue have grown so significant that we will not renew PG&E’s Chamber membership next year.”

“Over time as we’ve watched the Chamber take its positions, it was just increasingly clear that we were on different paths,” said Brian Hertzog, spokesman for the Northern California utility.

PNM Resources, the electric utility company for New Mexico, has also pulled out of the Chamber.

“At PNM Resources, we see climate change as the most pressing environmental and economic issue of our time. Given that view, and a natural limit on both company time and resources, we have decided that we can be most productive by working with organizations that share our view on the need for thoughtful, reasonable climate-change legislation and want to push that agenda forward in Congress,” the company said in a statement.

It’s not just the utilities, though. Nike came out with a statement last week blasting the Chamber’s position on climate change. “Nike fundamentally disagrees with the U.S. Chamber of Commerce’s position on climate change,” the company said in a release. But the company stopped short of quitting the Chamber.

Hertzog of PG&E said his company respects other organizations’ rights to continue to work within the Chamber.

“It’s really just a reflection of each company having to take a look at all of the issues that are in front of it,” he said. “For us, climate change is certainly one of, if not the, most important issues that we’re looking at the federal level. This is an issue that’s significant enough that a difference of opinion is enough for us to go in a different direction.”

President Obama has said he wants to cut greenhouse-gas emissions and return the United States to a position of world leadership in the fight against global warming. He is supporting legislation to that end and so are a number of businesses. Some 25 large companies—including DuPont, BP America, Ford Motor Company, and General Motors—have joined the United States Climate Action Partnership, a group focused on supporting cap-and-trade legislation.

Duke Energy, the nation’s second-largest burner of coal, and therefore one of the country’s biggest greenhouse-gas polluters, is a member of that coalition. The utility, which provides electricity in parts of the Southeast and the Midwest, isn’t going to quit the Chamber anytime soon. But it has left other organizations opposed to climate-change legislation.

In April, Duke CEO Jim Rogers said his company wouldn’t renew its membership in the National Association of Manufacturers after that group published a study saying the climate-change bill would cost 2.4 million jobs and add 50 percent to the cost of electricity.

“We want to invest in associations that are pulling in the same direction we are,” Rogers told Bloomberg at the time.

This summer, Duke abandoned its position as a member of the Clean Coal Coalition after learning that organization was going to be a dedicated opponent of capping greenhouse gasses.

“It became clear that there were certain members of the group that weren’t going to support climate legislation no matter how it was worded,” said Tom Williams, director of external relations for Duke Energy. That isn’t where his company is at, he said. “It’s not a perfect bill, but it came a long way,” he said of the pending legislation. – Portfolio.com

]]> 4278 2009-09-29 23:48:37 2009-09-30 06:48:37 open open business-brawl publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6257#comments wfw:commentRSS http://zikkir.com/business/6257/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6257 syndication_item_hash eb95340267ef265340672a1b435a516f Out of Sight http://www.ethiopianreview.com/business/4277 Wed, 30 Sep 2009 06:50:24 +0000 http://zikkir.com/business/?p=6259 1
Half of all drug trials are now conducted outside of the U.S.

How dangerous are pharmaceutical clinical trials that are conducted overseas?

The question was in the news repeatedly this year as Pfizer, the world’s biggest drugmaker, tussled with the Nigerian state of Kano over a 1996 clinical trial of its Trovan antibiotic. The testing took place during a meningitis epidemic, and Pfizer was held responsible for 11 deaths and dozens of injuries.

For months, Pfizer executives were on the defensive, especially after a federal appeals panel ruled that dozens of Nigerians could sue the drugmaker in a U.S. court. So this past July, a $79 million settlement was reached, with most of the fund to be used to establish health care initiatives there and to settle claims. Bad publicity aside, the payout was a far cry from the $2 billion that Kano officials had sought.

But the damage was done—the long-running dispute highlighted sobering questions about whether the pharmaceutical industry follows international law and properly offers informed consent to patients, which has become a flash point in a growing debate over the ethics of running clinical trials in other countries.

“This whole topic is a big concern,” says Vera Sharav, an industry critic who heads the nonprofit Alliance for Human Research Protection. “There may be exploitation of enrolled patients. You may also get drugs that are based on data that was obtained improperly and then approved here by the FDA. And that’s because there’s insufficient FDA oversight of these trials.”

The issue is gaining attention because more trials are run in foreign countries. Nearly one-third—or 157 out of 509—clinical trials registered on a federally run website are being conducted overseas, according to an article earlier this year in the New England Journal of Medicine. Meanwhile, more than half of all trial sites—13,521 out of 24,206—are outside the U.S., with many located in Eastern Europe and Russia, where oversight standards are evolving.

Why are drugmakers racing overseas? There are several reasons. For one, running clinical trials in many other countries can be cheaper than in the U.S. Finding the necessary number of enrollees can also be easier in countries where health care is inadequate, which makes trials an attractive alternative. There’s also the opportunity to gain a toehold in expanding markets, where regulatory barriers may be fewer.

With all this activity, problems can occur. Last year, Wyeth briefly halted a vaccine trial in India while authorities probed the death of an infant with a preexisting condition, which should have disqualified the child. Ultimately, the drugmaker was exonerated. And GlaxoSmithKline was criticized for allegedly using children from poor families in Argentina who may not have fully understood consent forms for a vaccine trial. Glaxo denied the charges and insisted it complied with international standards.

Nonetheless, drugmakers and the companies they hire to run clinical trials—which are known as clinical research organizations—insist they go to great lengths to establish proper protocols, carefully oversee trial sites, and work with local authorities to ensure patients receive proper treatment. In fact, the Association of Clinical Research Organizations, an industry trade group, has been so concerned about the issue that it commissioned a white paper, which was released over the summer.

In the paper, ACRO maintained that most early-stage trials, which involve safety testing in humans, continue to be run in just three well-developed countries, including the U.S. And most industry research and development spending—96 percent —took place in developed countries during 2007. They also argue that there are benefits to overseas trials, namely speeding drug development and improving foreign health care systems.

“On a flattened earth, with waning U.S. participation in clinical trials, global trials are helping speed important drugs to market,” says Doug Peddicord, ACRO’s executive director, in a statement. The group goes on to say that the advantages of going overseas sometimes bring “rare but well-publicized lapses in standards.”

So how should the problem be addressed? There seems to be agreement among critics and industry players on this much—find the best ways to ensure all clinical-trial participants adhere to international standards and make it possible for the Food and Drug Administration to conduct inspections around the world. Says Sharav: “There has to got to be more oversight.” – Portfolio

]]> 4277 2009-09-29 23:50:24 2009-09-30 06:50:24 open open out-of-sight publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6259#comments wfw:commentRSS http://zikkir.com/business/6259/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6259 syndication_item_hash 0139ed3af55fe7cea36d39aec48d2646 Business in Japan under the DPJ New bosses http://www.ethiopianreview.com/business/4276 Wed, 30 Sep 2009 06:53:14 +0000 http://zikkir.com/business/?p=6261 The effect on business of the change of government in Japan is likely to be subtle but profound
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AMONG Japan’s many inventions in the 20th century was the “developmental state”, an alliance between government and business to direct industry and set economic priorities. For most of the post-war period it was phenomenally successful, transforming the country into the world’s second largest economy. So was the Liberal Democratic Party (LDP), which embraced this approach during over 50 years of almost uninterrupted sway. But in elections on August 30th the Democratic Party of Japan (DPJ) trounced the LDP. Given the active role that the state still plays in the economy, the change may be as sweeping for business as it is for politics.

The relations that big business nurtured with the LDP for decades now count for little. The 1,400 firms of Keidanren, a powerful business lobby, for example, donated around $30m to the LDP in 2007 compared with less than $1m to the DPJ (though Keidanren itself declined to endorse a party in the election).

The DPJ is eclectic, comprised of former LDP politicians, ex-bureaucrats, socialists, right-wingers and reformers. Although its leadership includes the scions of rich industrial families, unions constitute its political base. Yukio Hatoyama, who is poised to be named prime minister, has railed against “unrestrained market fundamentalism and financial capitalism”.

The party campaigned against the economic reforms of Junichiro Koizumi, who as prime minister in 2001-06 revitalised Japanese business but is today blamed for a growing sense of economic insecurity. On the whole the party, like Japan itself, is conservative and averse to change. Yet it has pledged to overhaul economic policy in three areas that will have a big impact on the private sector: government spending, social safety nets and Japan’s reliance on exports. These changes, it is hoped, will restore growth to the economy, which has stagnated since a stockmarket and property bubble burst in the early 1990s.

Start with spending. The new government plans to curtail big government construction projects, a hallmark of the LDP. Some of the money saved will go to subsidies for green technologies, such as a proposal to pay half the cost of installing solar-power systems in homes. The DPJ wants Japan to reduce its carbon emissions by 25% below 1990 levels by 2020 (the LDP had called for a 15% cut; Keidanren wants 4%). As a result heavy industry, and construction and cement firms in particular, are bracing for tough times, while green-tech firms like Sharp, Sanyo and Toshiba are preparing for a boom.

The DPJ wants to boost consumer spending by reducing taxes and fees. It plans to halve the petrol tax of ¥54 ($0.58) a litre and gradually eliminate highway tolls, for example, in blatant contradiction of its green goals. This should boost carmakers and related firms, to the detriment of Japan’s famed railways.

The DPJ is also determined to increase social spending. It says it will improve health care, expand payments for the unemployed and provide a minimum monthly pension of ¥70,000. To support families, it says it will give parents ¥26,000 a month for every child aged 15 and under, and remove the tuition fees for public high schools of around ¥120,000 a year.

These measures are all designed to give people more financial security, in the hope that this will induce them to spend more and thus boost the economy. If they succeed, firms that cater to domestic consumers, from clothing retailers to restaurants, are expected to prosper.

Some measures aim to boost business directly. The DPJ wants to reduce the tax rate for small firms from 18% to 11% (even though only one-third of them actually pay tax). But other policies are likely to hurt. It wants to increase the minimum wage to ¥1,000 per hour eventually from as little as ¥629 today. It also wants to reverse one of Mr Koizumi’s reforms, allowing manufacturing firms to hire temporary employees, which it says adds to the sense of economic vulnerability, but which businesses say injects some flexibility into otherwise hopelessly rigid labour laws.

Businesses are worried, too, that the new government might tax them to pay for all this, given that the public debt is already nearly 200% of GDP. The DPJ says it will find the money by eliminating waste, but Keidanren, at least, thinks that will not be enough. It wants the government to raise the consumption tax from 5% to 10%—something the DPJ has pledged not to do for four years.

The traditional bias towards exporters is also in question. Carmakers and electronics firms in particular benefit from a weak yen, which keeps prices low for overseas customers. But it also hurts domestic producers and consumers. Financial types expect the yen to appreciate under the DPJ.

Of course, the DPJ may struggle to implement all of these plans, given its own ideological fissures and the entrenched power of Japan’s bureaucracy. And it has no intention of undoing the protectionist red tape, particularly in services, that does the most to hold back Japan’s economy. Yet the new government may nonetheless be paving the way for future reforms. Past Japanese governments were reluctant to embrace deregulation and the economic upheaval it would bring, in part because big companies provided all-important social safeguards (lifetime employment, generous pensions and the like). The DPJ, however, intends to create a state-funded safety net. That would remove one of the biggest obstacles to change.

This year the Japanese economy is forecast to contract by 3-6%. China will surpass it as the world’s second-largest economy this year or next. That is expected to cause widespread hand-wringing, akin to America’s “Sputnik moment,” when the Soviet Union beat it to become the first country to launch a satellite. The DPJ has no grand strategy for restoring Japan to growth—and greatness—beyond funnelling money to consumers, and leaving them to do the hard work. That may be wise. Only developing countries need a developmental state, after all. – The Economist

]]> 4276 2009-09-29 23:53:14 2009-09-30 06:53:14 open open business-in-japan-under-the-dpj-new-bosses publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6261#comments wfw:commentRSS http://zikkir.com/business/6261/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6261 syndication_item_hash 6b3ab03297670144b001f6648e4dffc2 America, China and protectionism Wearing thin http://www.ethiopianreview.com/business/4275 Wed, 30 Sep 2009 06:54:16 +0000 http://zikkir.com/business/?p=6263 How strong is Barack Obama’s belief in free trade?

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ALTHOUGH Barack Obama alarmed free traders last year with protectionist-sounding pronouncements on the campaign trail, such as one about the need to renegotiate NAFTA, optimists among them dismissed this as mere posturing designed to placate restive trade unions. Yet a decision by the White House to impose punitive tariffs (35% for the first year, falling by five percentage points a year, to 25% in the third year) on Chinese-made pneumatic tyres now raises serious doubts about Mr Obama’s commitment to free trade.

The duties are to be imposed on September 26th under a part of American trade law known as “Section 421”. The American government argues that these tyres are being imported into America from China in “such increased quantities and under such conditions as to cause or threaten to cause market disruption to domestic producers” of competing tyres.

America imported tyres worth $1.3 billion from China between January and the end of July this year. Under the terms of China’s accession to the WTO in 2001, countries have the right to impose tariffs in response to a “surge in imports” from China. But there is always scope for dispute about what constitutes enough of an export surge to justify the use of tariffs, and China has already notified the WTO of its intention to file a case against America. It has also said that it is considering the imposition of retaliatory tariffs on American exports of car parts and chicken meat.

Poultry and tyres sound like small change in the context of the economic relationship between the two big economies. But Eswar Prasad, a professor of trade policy at Cornell University and a former head of the IMF’s China desk, argues that the American action and Chinese retaliation may presage “more protectionist measures to come from both sides”. He notes that China could retaliate much more broadly than by raising a few tariffs: it could, for example, supplement its implicit export subsidies, including an undervalued exchange rate, with more explicit measures to support its export industries and block imports. This could “easily ratchet up into a broader trade war and inflict economic damage on both countries”.

The decision to use Section 421 is a disturbing one. John Veroneau, a lawyer and a former deputy trade representative, points out that this particular rule “doesn’t require any finding of unfair trade practice by China…Chinese tyre exporters were not found to be doing anything wrong or illegal.” This means that it is hard for the administration to pass off the decision as being about tougher enforcement of existing trade agreements, which has been the focus of Ron Kirk, the new American trade representative, since his appointment.

Mr Obama’s decision also marks a clear break with recent American policy. His predecessor, George Bush, had four opportunities to take such a step against China, but in each case chose not to do so. Mr Veroneau, who worked on those cases, argues that “based on their negotiations with the Clinton Administration on Section 421, China expected this tool to be used, if ever, only in the rarest and most exceptional of cases”. So China’s pique is understandable, as are worries that this could lead to a slew of other American industries demanding protection against competition from Chinese imports.

Simon Evenett, a trade economist at the University of St Gallen in Switzerland, argues that Mr Obama’s decision is a clear affirmation of the power of American labour unions in shaping its trade policy. It appears that Mr Obama is desperate to shore-up support from unions and the left of the Democratic Party for health-care reform—his most pressing domestic concern—and is prepared to risk repercussions on trade.

If so, heightened economic tensions between America and China are a heavy price to pay. Mr Prasad says that “an escalating trade war between these two large economies has the potential to disrupt the world trading system”. The China-America spat also comes soon before the leaders of the G20, the group of big rich and emerging economies, meet in Pittsburgh on September 24th. Global co-operation has been crucial amid efforts to encourage economic recovery. It would be a tragedy if it that were derailed by posturing over tyres and chicken. – The Economist

]]> 4275 2009-09-29 23:54:16 2009-09-30 06:54:16 open open america-china-and-protectionism-wearing-thin publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6263#comments wfw:commentRSS http://zikkir.com/business/6263/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6263 syndication_item_hash 7d4519dd0922f524a07b702036e199d5 G-20 agrees on time table for reforms http://www.ethiopianreview.com/business/4274 Wed, 30 Sep 2009 06:55:50 +0000 http://zikkir.com/business/?p=6265 Nations vow to work together on rules aimed at reducing financial risk through global bank compensation standards, reserve levels and other steps.

Leaders of G-20 nations committed Friday to a timeline to establish and enforce new rules aimed at spurring financial firms around the globe to improve capital cushions and avoid taking risk.

They agreed to keep working to stimulate economies and stabilize financial systems following the worst financial crisis in decades.

“We brought the global economy back from the brink, we laid the groundwork today for longtime prosperity as well,” President Obama said at a press conference after the summit concluded. “Still we know there is much further to go.”

The Pittsburgh summit was the third G-20 summit in less than a year, and leaders agreed to work together more closely toward sustained growth and strengthen banking regulations.

By the end of 2010, the nations would agree on rules aimed at improving “quantity and quality” of bank capital and discouraging excessive risk-taking. They also set a goal to start enforcing those rules by the end of 2012.

The G-20 leaders’ statement did not detail how the nations would enforce those rules.

In a related measure, the leaders also agreed to set new executive compensation standards that would avoid risky-taking, like “avoiding” multi-year guaranteed bonuses and requiring stronger disclosure for compensation policies.

The leaders asked firms to start putting into place such compensation suggestions, but didn’t lay out a method for enforcing them. They also asked a G-20 advisory board to suggest more executive pay measures by next March.

One of the bigger announcements was that the G-20 will now eclipse the G-8 as the group tasked to work out global economic efforts. The G-8 will continue to meet on security issues but will carry much influence, according to Obama administration officials.

“This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest,” according to a White House press release.

The G-20 also made some progress on the idea of rebalancing how major countries’ economies interact with one another, but leaders stopped short of declaring anything more than unenforceable goals.

Nations with a lot of debt, like the United States, agreed to adopt policies that would “support private savings,” and nations with big surpluses, like China, agreed to spur their own domestic demand.

The G-20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United States, the United Kingdom and the European Union. – CNNMoney.com

]]> 4274 2009-09-29 23:55:50 2009-09-30 06:55:50 open open g-20-agrees-on-time-table-for-reforms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6265#comments wfw:commentRSS http://zikkir.com/business/6265/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6265 syndication_item_hash b2ac27be90951d91fcd1e9ebb147cdaf Understanding the G20 http://www.ethiopianreview.com/business/4273 Wed, 30 Sep 2009 06:57:42 +0000 http://zikkir.com/business/?p=6267 Will the economic summit restore global confidence? And will there be an open bar?

As you read this, the economic leaders of the world are gathering in Pittsburgh for the G20 economic summit.

While interest in this event is high, knowledge about its participants, organization, goals, and menu are little known to Americans, many of whom are still busy following the fallout from the Taylor Swift-Kanye West imbroglio. Here are answers to key questions.

Q: What is the G20?

A: It’s a group of 20 finance ministers and central bank governors who come together from around the world. This year they’ve already been in London and Copenhagen. Now they’re meeting in Pittsburgh.

Q: What does the G stand for?

A: It stands for “gonzo.”

Q: Why 20? Why not 21 or 19?

A: That’s complicated. Several people who were invited had prior commitments, including the finance minister from Burkina Faso. This is unfortunate, because he was supposed to bring the beer.

Q: Is this anything like the G8?

A: Yes, but less exclusive. The G8 started as the G5 in the 1970s, but then expanded when Italy felt snubbed. That made six. Then Canada sent a case of Labatt’s and was accepted into the party, followed by Russia, which simply showed up at the Four Seasons Hotel in Naples, Fla., and wouldn’t leave the lobby.

After that, nobody could even get in the door. Hence the G20, which is far more inclusive and, according to some, a lot more fun, with an enhanced schedule of off-campus day trips and occasional events where spouses are invited.

Q: Why are they meeting in Pittsburgh?

A: Parking is very inexpensive in Pittsburgh. A perfectly clean and well-maintained garage will cost you 10% of what it would in New York or Los Angeles.

Q: Why is President Obama going to be there?

A: President Obama’s strategy now is to be everywhere at once. The guy would go to the opening of an envelope.

Q: Who’s on what side? Are there sides?

A: Of course, with 20 participants there are going to be cadres, cliques, and splinter groups. Nobody really likes Gordon Brown of the U.K. very much, and several practical jokes are now being planned at his expense. Many attendees are cozying up to French President Nicolas Sarkozy, whose wife, Carla Bruni, is entertaining at the clambake Saturday night.

Q: Are the meals sit down or buffet?

A: A combination. Hors d’oeuvres followed by a buffet with formal table tent seating is the norm at dinner. There is a box lunch after the morning session on Sunday so that people can head out to the golf course for early tee times.

Q: Is dress “business casual” or more formal?

A: Suits with no ties for the men except at the opening session, where participants are encouraged to wear the festive garb of their native lands.

Q: Open bar?

A: Sure, although it may set you back a couple of bucks to get them to bring out the top-shelf stuff.

Q: Does the G20 issue some sort of statement after the conference?

A: Of course.

Q: Who is writing that?

A: No one knows. Rumors are that Bruce Vilanch was seen boarding a private jet to Pittsburgh.

Q: Are the recommendations made by the G20 enforceable?

A: Not at all.

Q: What if nobody pays attention?

A: Life will go on.

Q: What about the future of the G20?

A: They’re considering expanding the vegetarian selections at the first 2010 conference, which will be in Australia.

Q: Why Australia?

A: Beer, mate! Beer!

Stanley Bing has recast his book “Executricks” for the paperback edition due out in November; it is now entitled “How to Relax Without Getting the Axe.” For more Bing, unrelated to the Microsoft search engine, go to stanleybing.com. – Fortune Magazine

]]> 4273 2009-09-29 23:57:42 2009-09-30 06:57:42 open open understanding-the-g20 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6267#comments wfw:commentRSS http://zikkir.com/business/6267/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6267 syndication_item_hash 6022af7225a1828d77ad9514d996233a US banks could pay $45bn to FDIC http://www.ethiopianreview.com/business/4281 Wed, 30 Sep 2009 09:16:24 +0000 http://zikkir.com/business/?p=6269 US banks will have to pay $45bn in up front fees to the depleted deposit insurance fund under a plan presented on Tuesday aimed at avoiding the use of taxpayers’ cash to plug the hole.

The Federal Deposit Insurance Corporation proposed the plan to top up its liquid assets, which it says will otherwise run out early next year as banks continue to fail.

FDIC staff said the cost of bank failures between 2009 and 2013 would be about $100bn, compared with an estimate of $70bn made in May. Most of the failures are expected this year and next.

Sheila Bair, FDIC chairman, stressed that the fund was in no danger of running out of money because it had a contingency credit line with the Treasury of up to $500bn. But she would rather not use it.

“I think there’s some recognition that . . . everyone’s got bail-out fatigue and should be extricating themselves from government support, not getting in deeper,” she said. “I think this is a good balance [because] it asks industry to step up.”

FDIC levied an emergency charge of $5.6bn on banks this year but the industry has lobbied hard against any more, arguing that they deplete capital at banks already hobbled by the recession.

Tuesday’s plan would avoid another one-off hit because banks would not have to recognise the charges on their balance sheets until the quarter when the fees were due. Exceptions would also be made for banks that would be jeopardised by the pre-payment.

John Dugan, an FDIC board member and the comptroller of the currency, said he supported the “thoughtful” proposal.

The only downside, he said, was that the cash provided to the FDIC would not then be used by the banking industry to provide loans. “This may not be likely to have a material effect on credit availability . . . but I think this is an important question,” he said.

The plan is open to consultation for 30 days.

The banking industry welcomed the plan. “It is a lot of money, but it is far better than the shock of another . . . special assessment,” said James Chessen, chief economist at the American Bankers Association.

The fund, which insures up to $250,000 (£157,000) per depositor in each bank, now stands at about $10.4bn, the lowest since the peak of the savings and loan crisis in 1993. So far this year, 95 lenders have failed. – FT.com

]]> 4281 2009-09-30 02:16:24 2009-09-30 09:16:24 open open us-banks-could-pay-45bn-to-fdic publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6269#comments wfw:commentRSS http://zikkir.com/business/6269/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6269 syndication_item_hash 83c6b943097709d84b8486cd59c6d22a ThyssenKrupp announces pull-out from merchant ship building in northern Germany http://www.ethiopianreview.com/business/4280 Wed, 30 Sep 2009 09:19:44 +0000 http://zikkir.com/business/?p=6271 ThyssenKrupp Marine Systems (TKMS) has decided to sell its Nordseewerke shipyard in Emden to wind power plant manufacturer SIAG Schaaf Industrie.

The company announced Emden would now become a high technology site for offshore wind power plants. SIAG would take on about 700 of the roughly 1,200 Nordseewerke employees; about 375 would remain at TKMS. The decision does not affect TKMS warship and submarine-building operations, including construction in Hamburg of frigates for the German Navy.

ThyssenKrupp, Germany’s biggest steel-maker, also operates the HDW-Gaarden container shipyard in Kiel.

The announcement has angered labor groups. Hundreds of protesters showed up at the SIAG’s gates, which were closed on Tuesday following the decision to acquire the Nordseewerke shipyard.

Merchant shipbuilding in Germany in decline

The sale spells the end to ship building in the northern German port city, said Wilfried Alberts, head of the Emden branch of the IG Metall engineering union. “More than 100 years of tradition have come to an end.”

Employment at German shipyards has reached a historic low, according to the Bremen-based Institute for Work and Economy (IAW) and the IG Metall.

The industry suffers from structural overcapacity, exacerbated by a slump in demand and cancellations particularly in container and cruise ship building as a result of the economic crisis. Several German shipyards have already been forced to declare insolvency. – DW-WORLD.DE

]]> 4280 2009-09-30 02:19:44 2009-09-30 09:19:44 open open thyssenkrupp-announces-pull-out-from-merchant-ship-building-in-northern-germany publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6271#comments wfw:commentRSS http://zikkir.com/business/6271/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6271 syndication_item_hash c16210b711b88e33ffef34d563ce97db Spain calls on Brussels to review Opel sale conditions http://www.ethiopianreview.com/business/4279 Wed, 30 Sep 2009 09:21:41 +0000 http://zikkir.com/business/?p=6273 Spain is calling on Brussels to intervene in the restructuring of General Motors’ European unit Opel amid fears that a politicized carve-up may lead to mass layoffs in car plants across the continent.
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The Financial Times newspaper reports that Spanish Industry Minister Miguel Sebastian wrote to European commissioners asking them to guarantee Opel’s rescue is based on “financial and commercial” criteria.

Sebastian insisted that any reorganization by Opel’s planned new owners, Canadian auto parts group Magna International, must “make best possible use of the company’s assets.”

The newspaper suggests that is a veiled reference to Opel’s factory in the northern Spanish city of Zaragoza, which, according to leaked GM documents, is listed as one of the most efficient in Europe.

Belgium, Spain, Britain and Poland have all expressed concern that Opel’s sale to Magna would see them at a disadvantage compared to Germany, which is backing the deal with 4.5 billion euros (US$ 6.6 billion) in state aid.

Officials in Berlin have defended the controversial funding after a series of complaints of possible political interference, saying Germany would bear the brunt of European job losses.

According to details leaked to German media, Magna is poised to slash around 11,000 jobs from Opel’s 45,000-strong European workforce, including roughly 4,000 from some 25,000 in Germany. – DW-WORLD.DE

]]> 4279 2009-09-30 02:21:41 2009-09-30 09:21:41 open open spain-calls-on-brussels-to-review-opel-sale-conditions publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6273#comments wfw:commentRSS http://zikkir.com/business/6273/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6273 syndication_item_hash 295a752d67136e938b4a025ef0f6eb22 New coalition’s ambitious tax cuts unlikely before 2011, experts say http://www.ethiopianreview.com/business/4299 Wed, 30 Sep 2009 09:55:43 +0000 http://zikkir.com/business/?p=6275 Germany’s new coalition government swept to victory in Sunday’s general election on the back of bold promises to cut taxes. But economists are skeptical that will happen soon due to a bulging budget deficit.
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Experts say the new coalition has no quick solutions to revive the German economy

In the wake of the resounding election triumph, Guido Westerwelle’s pro-business Free Democrat (FDP) party are poised to exert pressure on Chancellor Angel Merkel’s conservatives to agree to deep tax cuts to kickstart Europe’s largest economy.

But that may be easier said than done. The two centre-right parties will need to bridge differences on a range of policies including unemployment, education and energy. But tax cuts might prove to be the most tricky negotiation.

On Monday, Merkel made clear she would not shift far to the right to accomodate the FDP.

“You know me. I have been like this for some time. I do a bit for everyone but I do not change with the colours of a coalition,” she told reporters, adding the conservatives wanted to be the main party of the center ground.

FDP aims for ambitious tax overhaul

The FDP has campaigned for a simplified German tax system and a total reduction of 35 billion euros. Germany has just emerged from its deepest recession in 60 years but the recovery has been fragile and with public debt soaring, the partners will find it hard to meet their tax-cut promises.

“We will see tax cuts because that was the main topic of the liberal FDP party in the campaign so they now have to deliver,” Carsten Brzeski, senior economist with ING bank in Brussels, told Deutsche Welle.

“There will be some quick relief for households, families and businesses but it won’t be as substantial as the FDP wish for and the soonest we could expect it to happen would be the second half of 2010, early 2011,” he said.

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Experts warn Merkel and Westerwelle won’t have much leeway on tax cuts

Brzeski warned that the ballooning budget deficit would sharply curb the government’s ability to take on tax reform. “The room for manoeuvre with public finance is not so big and Merkel burned her fingers during the last election with this topic. So we will not get this tax reform,” he said.

That view was echoed by Ullrich Heilemann, director of the Institute of Empirical Economic Research at the University of Leipzig.

“I don’t think there will be dramatic changes for the simple reason that the leeway to do something is rather small and the main task is to get the German economy on track one way or another,” Heilemann said.

“Budget constraints will prevent any changes that will fall onto deficit. You can make structural changes but you cannot do much to decrease the deficit,” he said.

Germany urged to rethink economic policy

Germany was the world’s biggest exporter of goods last year but stagnant consumer spending at home and a slump in world trade has battered the economy. There has been pressure at home and abroad for Germany to cut back its reliance on exports and implement tax cuts to boost consumer spending.

Despite being the junior partner in the coalition, the FDP will take confidence from its best ever result in a general election, winning 14.6 percent of the vote and push for quick tax cuts to revive the economy.

But Heilemann said Chancellor Merkel’s trademark caution in financial affairs will scupper Westerwelle’s hopes for swift reform.

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The coalition will have to roll up its sleeves and work on lowering the deficit first

“Merkel’s general principle has been let’s wait and see and hope the rest of the world is expanding and will lift Germany’s economy again and I don’t think there will be a shift in this paradigm,” he concluded.

With the budget deficit in Germany expected to reach six percent of gross domestic product (GDP) in 2010 – twice the European limit – and federal borrowing set to hit a new high next year, the new partnership will find it difficult to strike a balance between reducing state debt and consolidating the budget, at the same time as stimulating growth.

Not to mention dealing with unemployment figures which are set to hit 4 million by 2010.

Heilemann said neither the conservatives nor the FDP had any clear-cut solutions to revive the economy.

“If you go through the German press and look at the election campaign nobody really bothered how to improve the performance of the Germany economy,” he said. – DW-WORLD.DE

]]> 4299 2009-09-30 02:55:43 2009-09-30 09:55:43 open open new-coalition%e2%80%99s-ambitious-tax-cuts-unlikely-before-2011-experts-say publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6275#comments wfw:commentRSS http://zikkir.com/business/6275/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6275 syndication_item_hash ea862ca64b15551b57e1c8288735615a Business leaders urge new government to push economic reforms http://www.ethiopianreview.com/business/4298 Wed, 30 Sep 2009 09:59:06 +0000 http://zikkir.com/business/?p=6277 Germans voters on Sunday elected a new center-right alliance between Chancellor Merkel’s conservatives and the pro-business FDP. Business leaders hope the new government will steer the country towards economic recovery.

Germany’s business world on Sunday reacted positively to the new center-right government as the right alliance to nurse Europe’s largest economy back to health.

“Angela Merkel and Guido Westerwelle are the dream couple for German mid-sized companies,” Mario Ohoven, head of Germany’s federal association of medium-sized companies, told news agency Reuters.

Chancellor Angela Merkel’s conservatives won 33.5 percent of the vote while their preferred coalition partners, the FDP, led by Guido Westerwelle, captured a record 14.5 percent.

The result gives Merkel a second term in office and allows her to form the center-right coalition she has argued is best placed to lift Europe’s largest economy out of its worst post-war recession.

“We can really celebrate tonight, but afterwards we have a hard job ahead of us,” Merkel told cheering supporters on Sunday night.

Major economic challenges

Even though Germany emerged from a deep recession in the second quarter of this year thanks to a slew of economic stimulus measures, economists warn that a sustained recovery is far from assured.

The country faces a ballooning budget deficit, rising unemployment, soaring social security contributions, stagnant consumer spending and a deep credit crunch.

The business-friendly FDP, a party which saw its support rise in the wake of the financial crisis, is committed to promoting free markets and small government.

The party, which is expected to take over either the finance or economics ministry, has campaigned for lower taxes, health reforms and labor market reforms that will make it easier for companies to hire and fire workers.

FDP leader Guido Westerwelle said on Sunday that he planned to make good on his campaign pledges. “Be assured that we want to push through, step by step, everything that we promised voters.”

Both the FDP and Merkel’s conservatives are in favor of reversing a planned phase-out of nuclear powering Germany by 2020.


How reform-friendly will the coalition be?

All that prompted Germany’s business world on Sunday to welcome the new center-right coalition.

“I’m sure that the financial markets will react positively to this result,” said Folker Hellmeyer, chief strategist at the Bremer Landesbank. “A conservative-liberal government will improve the confidence of companies and the entire sector of medium-sized firms.”

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Can Westerwelle keep his promises to cut taxes?

But others have called for far-reaching economic reforms that include sweeping corporate tax relief and labor market reforms.

“We will judge the new government according to its reform policies, not according to its political colors,” said Hans Heinrich Driftmann, president of the German Chambers of Industry and Commerce.

Pessimism about government’s reform drive

But some experts warn that the next government will have little maneuvering power in the face of tight budget constraints and spiraling debt.

Germany’s federal deficit is projected to rise to six percent of gross domestic product (GDP) next year. New federal borrowing is expected to reach a record 86 billion euros ($126.5 billion).

“In terms of policies for the new government, I think everything will be overshadowed by the fact that the budget is in crisis,” said Jan Techau of the German Council of Foreign Relations. “When you look at the amount of debt Germany has, there is very little that government can do.” – DW-WORLD.DE

]]> 4298 2009-09-30 02:59:06 2009-09-30 09:59:06 open open business-leaders-urge-new-government-to-push-economic-reforms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6277#comments wfw:commentRSS http://zikkir.com/business/6277/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6277 syndication_item_hash d99c67e286afba341e32044d1826519b G-20 leaders agree to share more power with emerging economies http://www.ethiopianreview.com/business/4297 Wed, 30 Sep 2009 10:05:17 +0000 http://zikkir.com/business/?p=6279 After agreeing to allow the G-20 to take over the global role once played by the G-8, international political leaders struck a preliminary deal to provide emerging nations with more influence in the IMF, too.

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Lula and the BRIC countries take a seat at the head table

China and other major emerging economies like India and Brazil leave the Group of 20 summit in Pittsburgh with a bigger stake in rebuilding and guiding the global economy.

European Union and Chinese officials at the G-20 summit in Pittsburgh said that a tentative deal was in place to give rising powers greater voting power in the International Monetary Fund

“As things stand now, we believe that all parties have the strong will to accelerate reform of the international financial institutions,” Chinese Vice Foreign Minister He Yafei said.

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Reform is coming to the IMF

Brazil, Russia, India and China, known as the BRIC countries, had requested earlier this month that the most developed countries reduce their voting share in the IMF to 50 percent, down from 57 percent.

They argued that a number of European nations wielded inordinate influence on the fund, especially inappropriate in light of the fact that their economies had been surpassed in size by BRIC countries in recent decades. The United States, too, has occasionally grumbled that Europe has too much say in IMF policy decisions.

Statement of principles

It appears that, in Pittsburgh, Europe has relented, in part, to putting its stamp on the G-20’s draft agreement on economic policy.

China, along with other countries that have been criticized for running large, unhealthy surpluses and relying on exports for growth, are being urged to boost domestic consumption.

At the same time, countries with outsized public debt, such as the United States, are called on to promote private savings.

“We recognize that the process to ensure more balanced global growth must be undertaken in an orderly manner. All G-20 members agree to address the respective weaknesses of their economies,” the draft agreement declares.

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G-20 leaders agreed on a new direction for the financial sector

Tougher finance rules

World leaders also pledged to reform the financial sector in an effort to stop risky banking practices seen as a cause of the global economic crisis. In a joint statement issued at the end of the summit, G-20 leaders were clear on the new direction of financial regulation.

“Major failures of regulation and supervision, plus reckless and irresponsible risk taking by banks and other financial institutions, created dangerous financial fragilities that contributed significantly to the current crisis,” the statement said. “A return to the excessive risk taking prevalent in some countries before the crisis is not an option.”

Tougher controls on compensation and bonus payments for banking executives were also endorsed.

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Nicolas Sarkozy was satisfied with the G-20 summit

Many European leaders, including German Chancellor Angela Merkel and French President Nicolas Sarkozy, had hoped tackling problems in the financial sector would be at the top of the agenda in Pittsburgh.

“There was unanimity around the table that the errors of the past won’t happen again,” Sarkozy said after the meeting. “I am very satisfied by what we decided.”

The leaders also agreed to keep emergency stimulus funding in place for the time being, with plans to scale them back when sustainable recovery is reached.

While the world’s largest economies agreed to phase out fossil fuel subsidies to combat global warming, climate change was a largely overlooked topic in Pittsburgh. No consensus was reached regarding the amount wealthy nations should pay to support the efforts of developing nations to curb global warming, which is seen as an essential step towards a new global treaty proposed for the Copenhagen climate summit in December. – DW-WORLD.DE

]]> 4297 2009-09-30 03:05:17 2009-09-30 10:05:17 open open g-20-leaders-agree-to-share-more-power-with-emerging-economies publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6279#comments wfw:commentRSS http://zikkir.com/business/6279/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6279 syndication_item_hash ed7aa19499bda19e9387c71e48928626 Sberbank could sell Opel stake http://www.ethiopianreview.com/business/4296 Wed, 30 Sep 2009 10:06:41 +0000 http://zikkir.com/business/?p=6281 Though the sale of a controlling stake in Opel to parts-maker Magna and the Russian Sberbank is not yet final, Sberbank’s head said Friday his company may sell its share of Opel to a Russian industrial concern.

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Russian automaker GAZ could become a 35 percent owner of Opel

The Russian bank Sberbank, which will hold a 35 percent stake in the new Opel, could sell its holdings to the Russian carmaker GAZ or the Russian state bank VEB, Sberbank head German Gref said in an interview published Friday by Reuters.

“We’re very interested in passing our share along to an industrial partner,” Gref said. The Austrian-Canadian auto parts maker Magna will hold a further 20 percent in the new Opel.

Gref’s comments will add fuel to a debate about the involvement of Russian partners in the sale of Opel. The German government has served as midwife for the new Opel, providing a 4.5 billion euro line of credit to fund the Magna and Sberbank takeover.

Last week, Gref said he hoped the deal would lead to the transfer of technology to Russian auto firms, which are hopelessly outdated. Opel will begin producing Astra model cars in Russia under an agreement with GAZ.

“The point of our participation in the deal is for the import of technology. If this doesn’t happen, then we wasted our time,” Gref was quoted by news agency RIA Novosti.

Russian car maker Avtovaz announced Thursday that it plans to lay off 27,600 workers because of plunging sales of its outdated Lada model. The company also announced losses of $1.2 billion (800 million euros).

Opel’s workers in Western Europe are concerned that their jobs may be moving eastward. On Wednesday, thousands of workers from across Europe converged on the Opel factory in Antwerp, Belgium to protest the plant’s planned closure, as well as plans to cut up to 11,000 jobs in Germany, Belgium, Spain and Britain.

The governments of Belgium, Spain and the United Kingdom, all nations with Opel factories, are appealing the terms of the Opel deal to the European Commission, arguing that Berlin in effect bribed Magna with government loans in order to prevent the closure of any Opel facilities in Germany. – DW-WORLD.DE

]]> 4296 2009-09-30 03:06:41 2009-09-30 10:06:41 open open sberbank-could-sell-opel-stake publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6281#comments wfw:commentRSS http://zikkir.com/business/6281/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6281 syndication_item_hash b6fda56d20b2d26b59759893c1078dc6 Fraud, corruption and espionage on the rise at German firms http://www.ethiopianreview.com/business/4295 Wed, 30 Sep 2009 10:08:36 +0000 http://zikkir.com/business/?p=6283 1
Two-thirds of corporate crime is committed by top and middle managers

Damages from white-collar crime at large German companies have almost tripled in recent years, according to a new study released this week. More and more of the criminals are coming from the ranks of management.

White-collar crime in Germany has exploded in severity, the consulting firm PricewaterhouseCoopers (PwC) said Thursday, with over 60 percent of German companies reporting cases of industrial espionage, corruption and other offenses. Firms expect crime to worsen as a weak economy makes competition tougher and workers unhappier.

The average cost to a firm per incident has risen from 1.47 million euros four years ago to nearly 4.3 million euros today.

“The direct costs of crime are only the tip of the iceberg,” said PwC partner and former prosecutor Steffem Salvenmoser. “Above all, the reputational damage to a firm in cases of corruption, data theft or price-fixing is often greater than the measurable financial losses.”

The study’s results are based on a survey of 500 large German companies conducted by PwC in spring of 2009, after the German economy sank into its deepest recession in over 60 years, propelled in part by the worldwide financial crisis.

Over 40 percent of the surveyed firms expect competitors to use espionage or anti-competitive practices such as cartels to gain an advantage in a tough economic climate. Over a third of the companies expected workers to steal from their employers as concerns about holding onto jobs mounts.

Crime from the corner office

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Only 50 percent of managers accused of criminal deeds are prosecuted

Over 70 percent of the perpetrators were caught thanks to tipsters, the study said, despite increased investment in internal control measures designed to detect theft and fraud. Those results suggest that preventive measures have little effect according to Professor Kai Bussmann from the Martin Luther University in Halle, who worked on the study.

Further tainting a company’s reputation is the finding that the perpetrators often come from the ranks of management. The study said 29 percent were executives from the very top of the company’s leadership and 38 percent were middle managers. Many perpetrators were long time employees, 45 percent with more than ten years of tenure with the company and over 90 percent were men.

Strikingly, despite the size and nature of the crimes, firms pressed charges against malfeasant managers just 50 percent of the time, compared to 61 percent in the PwC’s last survey in 2007. One fifth of the top managers who took part in crimes against their employers received no punishment whatsoever.

“Although the relative leniency against perpetrators from the leadership level can be explained by the particular legal and factual difficulties of individual cases this practice is extremely problematic from vantage point of the credibility and leadership of management,” Salvenmoser said. – DW-WORLD.DE

]]> 4295 2009-09-30 03:08:36 2009-09-30 10:08:36 open open fraud-corruption-and-espionage-on-the-rise-at-german-firms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6283#comments wfw:commentRSS http://zikkir.com/business/6283/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6283 syndication_item_hash 5897d0b71b54665e1d617a18d9ec360e German consumer mood continues to improve http://www.ethiopianreview.com/business/4294 Wed, 30 Sep 2009 10:11:11 +0000 http://zikkir.com/business/?p=6286 1
Consumers have so far sustained the economy in the face of recession

A survey by market research institute GfK published Friday suggests that Germans are confident they have the worst of the economic crisis behind them, with consumer spending at its highest since June 2008.

GfK’s September report, which surveyed 2,000 consumers, recorded the sixth consecutive monthly rise in consumer spending, and its “consumer climate index” predicts an increase of 4.3 points for October, compared to a 3.8-point rise in the previous month.

“Private consumption has remained the main crutch of the German economy this year,” commented GfK expert Rolf Buerkl. But he warned that a sustainable recovery is dependent on a healthy job market.

“If unemployment rises significantly in the coming months, it will put an extra burden on consumers and depress spending,” Buerkl said.

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Unemployment is expected to rise in the fall

Consumers think the crisis is over

According to the GfK, consumers have been encouraged in recent months because prices have remained stable and the economic crisis has not made itself felt in the job market yet. On top of this, the GfK institute believes that news that the German economy recovered from its one-year recession in the second quarter of this year has led consumers to believe that the economic crisis is all but over.

“Many consumers see more cash in their pockets because prices have been stable and have even sunk,” Buerkl commented. “This extra spending power has allayed fears about losing jobs and the threat of rising unemployment in the country.”

An increase in credit purchases also shows that expectations about personal income are now at the highest they have been for two years, and that there is more confidence in future income.

Most economists however predict higher unemployment in the fall, and many warn that the expected collapse in the job market has been delayed by massive government bailouts in the past months. “Many companies are currently facing the decision on whether to increase part-time work,” Buerkl said. – DW-WORLD.DE

]]> 4294 2009-09-30 03:11:11 2009-09-30 10:11:11 open open german-consumer-mood-continues-to-improve publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6286#comments wfw:commentRSS http://zikkir.com/business/6286/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6286 syndication_item_hash 3121a84b39f9e86d3f8a43e9ed07acf7 Financial regulation tops agenda at G-20 summit http://www.ethiopianreview.com/business/4293 Wed, 30 Sep 2009 10:14:37 +0000 http://zikkir.com/business/?p=6288 1
Geithner says he’s optimistic about reaching an agreement

In spite of concerns that financial reforms would take a back-seat in Pittsburgh, US Treasury Secretary Timothy Geithner has said world leaders are close to an agreement on regulation and limiting bankers’ compensation.

Despite misgivings from German Chancellor Angela Merkel that talks at the Group of 20 economic summit in Pittsburgh would stray off of main topics, comments from US Treasury Secretary Timothy Geithner suggest the G-20 nations may be close to an agreement limiting bankers’ compensation.

Before leaving Berlin for the summit, which brings together the twenty biggest developed and emerging economies, Merkel expressed concern that the United States would let its goal of rebalancing the global economy cloud the issue of market regulation.

Regulations and bonuses top the agenda

However, as the conference got underway with a ‘working dinner’, Geithner said that market regulation was at the top of the United States’ list of topics for the summit, adding that the G-20 nations were close to an agreement on a proposal to limit bankers’ compensation.

“We are not going to walk away from the greatest economic crisis since the Great Depression and leave unchanged, and leave in place, the tragic vulnerabilities that caused this crisis,” he said.

Many European leaders, including Angela Merkel and French President Nicolas Sarkozy, have called for increased accountability in the banking sector and caps to be placed on banking executive bonuses.

“Pittsburgh will be a decisive milestone in determining whether the issue of financial market regulation remains a central issue,” Merkel said before departing from Berlin.

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Police and protesters clashed on sidelines of the summit

The G-20 economic summit is the third of its kind in response to the global economic crisis. The first two meetings, in Washington D.C. and London, dealt with government stimulus spending and the causes of the crisis, while Pittsburgh focuses on the next steps and how to prevent another crisis on this level from happening again.

G-20 becomes main economic forum

World leaders have also announced that the Group of 20 would supplant the G-8 as the main economic governing council. The larger G-20 includes the biggest industrial countries, plus emerging economies such as China, Brazil and India.

“Today, leaders endorsed the G-20 as the premier forum for their international economic cooperation,” the White House said in a statement after the summit dinner on Thursday. “This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest.”

Senior EU officials also revealed on Thursday that an agreement had been reached on shifting voting power in the International Monetary Fund to emerging economies, such as China, India, and Brazil.

“We’ve arrived at an agreement tonight on reform of the IMF to give underrepresented countries more of a say in its governance,” European Commission President Jose Manuel Barroso told the Reuters newsagency.

Police use pepper spray against protesters

As the world leaders arrived in Pittsburgh ahead of the meeting, police and protesters clashed on the streets around the conference venue. Police blocked off some of the main streets leading downtown, forcing protesters onto side streets. Some small clashes ensued, and police used pepper spray canisters and non-lethal rounds to disperse the crowds.

Store windows were broken near the protests, and officials have confirmed that as many as 19 arrests have been made.

On Wednesday, 14 members of Greenpeace were arrested after hanging from a large banner they had suspended from a Pittsburgh bridge with a message against global warming for the world leaders attending the summit. – DW-WORLD.DE

]]> 4293 2009-09-30 03:14:37 2009-09-30 10:14:37 open open financial-regulation-tops-agenda-at-g-20-summit publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6288#comments wfw:commentRSS http://zikkir.com/business/6288/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6288 syndication_item_hash 2e3cc1e62e4bca3459d124eff4c470f8 Group of 20 Summit kicks off in Pittsburgh amid tight security http://www.ethiopianreview.com/business/4292 Wed, 30 Sep 2009 10:17:35 +0000 http://zikkir.com/business/?p=6290 Leaders of the world’s richest economies arrive in Pittsburgh for two-day talks, as thousands of police prepare for potentially violent protests.

Leaders of the world’s largest economies are gearing up for two days of meetings in the US city of Pittsburgh, with an exhaustive agenda – from addressing trade imbalances to preventing future financial meltdowns to debating bankers’ bonuses – as thousands of police hit the pavement.

The Group of 20 summit is the first to be hosted by President Barack Obama, who chose Pittsburgh as the venue. And it seems a fitting backdrop for an event that aims to find a new way forward for the global economy. Once a smog-covered, “Steel City”, Pittsburgh has transformed itself into a model for sustainable growth. The David L. Lawrence Convention Center where leaders will meet has been certified “green.”

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The venue for the summit is the first and largest certified “green” convention center in the world

Security at the summit

With protest groups pledging to march on summit grounds, Pittsburgh has cranked up security, calling in the National Guard to monitor a ring of concrete road blocks around the site, and shutting down some downtown schools and businesses as a safety precaution.

Protest organizers told the AFP news agency they feared a violent showdown with the police.

“The city has bought a thousand canisters of tear gas. That’s something people are concerned about, like what to do if they’re gassed,” said Noah Williams, a spokesman for the Pittsburgh G-20 Resistance Project.

However, Tim Huschak, a bicycle-riding police officer who was recruited from another town, said their goal was to protect everyone, “including the civil protesters”.

“We’re planning for the worst and hoping for the best. If you go on YouTube you can see what they did in London and Seattle at events like this,” he said.

G-20 summit agenda

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Angela Merkel called ahead of the summit for more financial market regulation

How to move forward with an economic recovery will be at the top of the Group of 20 leaders’ agenda.

The US is proposing to rebalance the global economy by boosting domestic consumption in emerging economies, such as China and India – which would lower their trade surpluses – and by urging debt-ridden nations like the US and some of the members of the EU to save more.

Before boarding the plane to Pittsburgh on Thursday, Chancellor Angela Merkel called for tighter regulation of financial markets.

“We have to make sure we learn the lessons of the crisis and make sure it is not repeated,” Merkel told reporters in Berlin before her departure. “Politicians must have the courage to do things which are not immediately popular,” she added.

Also expected to be debated are the issues of bankers’ bonuses, unemployment, climate change, and economic stimulus packages.

On Thursday, British Prime Minister Gordon Brown said the world leaders will institutionalize the G-20 as the world’s main economic governing council. – DW-WORLD.DE

]]> 4292 2009-09-30 03:17:35 2009-09-30 10:17:35 open open group-of-20-summit-kicks-off-in-pittsburgh-amid-tight-security publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6290#comments wfw:commentRSS http://zikkir.com/business/6290/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6290 syndication_item_hash 417d0b7a60dd3eafca6c537e2271fda0 French, German publishers step up campaign against Google Books http://www.ethiopianreview.com/business/4291 Wed, 30 Sep 2009 10:20:30 +0000 http://zikkir.com/business/?p=6292 1
Changing how we access books – for the better?

The internet giant’s project to digitize millions of books is up and running, but some in Europe’s book industry are still hoping to cut a better deal.

Google’s French unit was in court on Thursday, answering to charges of copyright infringement in a suit filed by French publishers and authors.

The claimants – publishing house La Martiniere, The French Publishers’ Association and the authors’ group SGDL – charge that Google’s Books project, which has scanned and digitized more than 10 million books worldwide thus far, is illegally reproducing and distributing copyrighted material.

They seek a 15 million euro judgment for Google’s work over the past three years, and an additional 100,000 euros a day for each day the firm continues to infringe on their copyrights.

“It’s an anarchic way of brutally stockpiling French heritage,” said Yann Colin, the plaintiffs’ lawyer, arguing in court.

He said that digitizing a book was, in itself, reproduction, adding that “once it is digitized, you can’t undo it.”

Google, however, claims that it is not amassing a library, but creating a new research tool and repository for information that would otherwise be unavailable to most readers.

Meanwhile, German publishers called a news conference on Thursday to decry the European Commission’s lack of action in forcing Google to track down copyright holders before digitizing their work.

Battle lines blurred

The German Publishers and Booksellers Association did not call its press conference for Thursday merely to coincide with their French counterparts’ lawsuit. It was also a plea to the European Commission’s legal experts to look as skeptically on deals reached between Google and the book industry as the US Justice Department has recently.

US publishers, who had once taken as antagonistic a stance toward Google Books as those in France and Germany, reached a settlement with Google last year to give the company unfettered access to published material in return for monetary considerations and Google’s creation of a “Book Rights Registry” wherein copyright holders could make money from digitized versions of their work.

Two weeks ago, however, the Justice Department recommended that a court throw it out, saying the deal broke “fundamental copyright principles,” and could create “diplomatic stress” with countries like France and Germany.

At the same time, however, the stance of publishers, booksellers, and librarians, even within Europe, is far from uniform.

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Scanning books is labor-intensive

While French publishers are suing, the French national library said last month that it was in talks with Google over the possibility of allowing the California-based Internet giant to scan a portion of its 30 million books and documents, making them available free of charge on the Internet.

And EU Commissioner for Information, Society and Media, Vivane Reding, told German daily Handelsblatt that 90 percent of all archived books worldwide were no longer in print and therefore not accessible to the public.

“It’s good that new business models are developed to bring this content to the consumers,” said Reding, adding that digitization was an expensive undertaking that couldn’t be borne by governments alone.

Still, others say the issue is not digitization per se, but by whom and to what purpose – and that it’s therefore a task which should be carried out by government.

The Director of the German Publishers and Booksellers Association Alexander Skipis said he welcomes the digitization of copyright-free material. However, he criticized the European Commission and the major participating EU states for supporting the Google project.

“States are being negligent with their cultural heritage when they turn it over to a monopolist and thereby run tax-funded projects like the European digital library Europeana into the ground,” said Skipis.

Launched in November 2008, the Europeana digital library offers users access to some two million digital objects including film material, photos, maps, books, newspapers and other documents. – DW-WORLD.DE

]]> 4291 2009-09-30 03:20:30 2009-09-30 10:20:30 open open french-german-publishers-step-up-campaign-against-google-books publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6292#comments wfw:commentRSS http://zikkir.com/business/6292/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6292 syndication_item_hash c5918bd82eb2ce23a521e05e498ea46b Germany defends Opel rescue plan at EU ministers’ meeting http://www.ethiopianreview.com/business/4290 Wed, 30 Sep 2009 10:24:04 +0000 http://zikkir.com/business/?p=6294 1
11,000 European jobs are at risk as part of Magna’s restructuring plan

Germany has come under fire over its state aid to Opel at an EU meeting in Brussels. However, Germany’s Economics Minister Karl-Theodor zu Guttenberg insists Berlin will seek a “good European solution” to the deal.

European Union industry ministers met in Brussels on Thursday to discuss Germany’s controversial rescue of Opel, amid fears the plan will hurt jobs in other European countries.

Germany defended its state-backed takeover of Opel by Austrian-Canadian automotive group Magna, saying Berlin would shoulder the majority of European job losses.

“What we have done for Opel is good for all Europe (and) is good for Britain and Spain,” said German Economy State Minister Peter Hintze at the meeting.

“In absolute terms, Germany is absorbing the greatest number of job losses…more than Britain and Spain combined,” he added.

2
Workers protest at a plant in Antwerp, Belgium, which is on the list to be shut-down

However, British Business Minister Peter Mandelson is not convinced, and expressed his concerns over Magna’s purchase of Opel in a letter to EU competition watchdogs.

“We do not believe the case has been demonstrated that the current Magna proposal is commercially the most viable plan,” Mandelson wrote in the letter, extracts of which appeared in the Financial Times on Thursday.

In addition, Mandelson called on the EU Commission in Brussels to guarantee “a commercially based outcome rather than one determined by political intervention and subsidies.”

Earlier this month General Motors agreed to sell a 55 percent stake in its European subsidiary Opel to Magna and its Russian partner Sberbank – an outcome which the German government had supported.

Berlin has promised up to 4.5 billion euros ($6.6 billion) in loans and credit guarantees to help keep Opel afloat, but many EU ministers are now fearful that the rescue will unfairly protect jobs in Germany at the expense of those in other European countries.

The company employs around 45,000 staff in Europe, with more than 25,000 in Germany. The other Opel plants are in Belgium, Poland, Spain, and Austria. Its sister company Vauxhall is in Britain. Magna has previously said it may slash up to 11,000 jobs in Europe as part of its restructuring plan.

On Wednesday, the EU Commission said it would review Germany’s rescue plan to ensure it complies with EU rules.

Despite EU skepticism, German Economy Minister Karl-Theodor zu Guttenberg said he expects the EU to sign-off on the plan.

“We are not expecting a veto from the European Commission,” zu Guttenberg said while attending the Frankfurt car show. “I’m hoping for a good European solution.” – DW-WORLD.DE

]]> 4290 2009-09-30 03:24:04 2009-09-30 10:24:04 open open germany-defends-opel-rescue-plan-at-eu-ministers%e2%80%99-meeting publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6294#comments wfw:commentRSS http://zikkir.com/business/6294/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6294 syndication_item_hash a5e63cc12e0212ce6a79d08a3676da2b Merkel urges reform at G-20 summit http://www.ethiopianreview.com/business/4289 Wed, 30 Sep 2009 10:27:57 +0000 http://zikkir.com/business/?p=6296 1
Chancellor Merkel urges the international community to stay on track to reform

While the US city of Pittsburgh gets ready to welcome world leaders for high-level monetary talks, German Chancellor Angela Merkel says the summit is an important step towards closer control of financial markets.

Speaking in Berlin ahead of her departure on Thursday, Merkel said it was crucial for the international community to learn from the mistakes that led to the global economic crisis. She worried that leaders could lose their momentum in pushing for financial reforms.

“That cannot be allowed to happen,” she said, and warned delegates at the Pittsburgh summit not to sidetrack away from the main issue of finding ways to stabilize financial markets.

Leaders from the world’s 20 major economies are expected to arrive in the US city on Thursday evening, where they will be invited to join US President Barack Obama for a reception and a working dinner.

Business proper will not get underway until Friday morning, when the heads of state and government will discuss what measures they can put in place in order to avoid a repeat of the financial downturn that took hold of the world last year.

Capping bankers’ bonuses

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Bankers and their bonuses is a big issue

Obama, for whom the G-20 summit is his first as host, is under pressure to show that his administration is serious about making reforms to its financial system. The EU, and France and Germany in particular, want to see a lid put on bankers’ pay packets.

Merkel said politicians should be brave enough to take steps that the big banks wouldn’t welcome.

French President Nicolas Sarkozy has threatened to walk out of the Pittsburgh talks if no agreement is reached on curbing bank executives’ bonuses.

“We have waited too long to remedy excesses in finance,” he said. “And we now know what disasters these excesses can cause.”

The executive arm of the European Union, the Commission, has set out plans for the creation of a network of finacial watchdogs to be presented during the two days of talks.

The cost of reducing emissions

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The far reaching effects of climate change will be discussed

Leaders are also expected to turn their attention to the financial aspect of slowing down global warming. Western nations want emerging economies to commit to a reduction plan, but they are pressing richer countries for cash handouts in exchange.

The UN annual meeting in New York addressed the issue of climate on Tuesday, but Merkel said she was not happy with the outcome.

“There has been progress, in particular from the Chinese and the Japanese side,” she told reporters in the German capital. “But I have to say that when I consider what still has to be achieved before Copenhagen, we cannot be happy.”

The aim of the UN summit is to thrash out a new global climate agreement to replace the Kyoto protocol which expires in 2012. – DW-WORLD.DE

]]> 4289 2009-09-30 03:27:57 2009-09-30 10:27:57 open open merkel-urges-reform-at-g-20-summit publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6296#comments wfw:commentRSS http://zikkir.com/business/6296/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6296 syndication_item_hash 92962a159b739e67bcef3360b2cbf8e2 German business sentiment improves ahead of polls http://www.ethiopianreview.com/business/4288 Wed, 30 Sep 2009 10:32:36 +0000 http://zikkir.com/business/?p=6298 1
Manufacturing firms say the business climate has improved since August

German business confidence edged higher for the sixth straight month to its highest level in a year, according to a key index published just days before national elections. Will the economic mood favor Chancellor Merkel?

The Munich-based Ifo research institute reported that its business climate index gained 0.8 points from August, climbing to 91.3.

Based on a survey of 7,000 executives, business sentiment was measured at its highest level since September 2008, when the collapse of American investment bank Lehman Brothers plunged the global financial system into crisis.

“Appraisals of the business situation and outlook have improved,” Ifo president Hans-Werner Sinn said in a statement on Thursday.

“However, by far the greater number of firms still assesses the business situation as poor,” he added.

Mixed sentiment across sectors

A statement on Ifo’s website said the mood in Germany’s manufacturing sector had recovered somewhat.

“Manufacturing firms no longer regard their present business conditions quite so negatively as in the previous month. They also anticipate a somewhat more favourable course of business in the coming half year,” the institute said.

“With regard to exports, their scepticism has subsided,” it said, adding, however, that more firms were planning job cuts.

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The retail sector has given a favorable appraisal of business prospects

Ifo data also pointed to an improvement in the wholesale and retail sectors. “In both distribution sectors, the survey participants are less critical regarding business developments in the coming half-year.”

The outlook for the construction sector, however, has clouded over somewhat. Survey respondents assessed their business prospects for the next six months with more scepticism than they did in August.

Slow pace of recovery

Carsten Brzeski, senior economist at ING bank, welcomed the latest Ifo data, saying that “although the speed of the improvement is slowing, for the time being, the only way is up.”

“Multiple tailwinds should have brought a warm ‘Indian Summer’ to Germany, with another growth surprise in the third quarter,” he added.

Last week, the September survey of German finanical desision-makers by the Mannheim-based Center for European Economic Research (ZEW) recorded a slight increase in market confidence, putting confidence at its highest level since April 2006.

“The economic expectations for Germany are consistent with the picture that the German economy is recovering but at a slow pace,” ZEW president Wolfgang Franz said.

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The positive outlook may steer Merkel to victory in the September 27 polls

Economic mood favors Merkel

Observers say that with German elections scheduled on Sunday, the increasingly positive economic mood is likely to work in favor of Chancellor Angela Merkel, whose Christian Democrats are leading in opinion polls.

Merkel has said that the worst is probably over for Germany but that the road to recovery will be a bumpy one.

Official data shows the German economy climbed out of a historic recession in the second quarter of 2009, registering growth of 0.3 percent from the first three months of the year.

The optimism in Germany has been reflected across the eurozone in September, as private sector activity gained momentum in the 16 nations that use the euro. The bulk of the growth can be traced to the services sector’s return to positive territory, according to data published on Wednesday by the Mirket research group. – DW-WORLD.DE

]]> 4288 2009-09-30 03:32:36 2009-09-30 10:32:36 open open german-business-sentiment-improves-ahead-of-polls publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6298#comments wfw:commentRSS http://zikkir.com/business/6298/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6298 syndication_item_hash b1aa6362f13cb18ea1e2c0ba1e391eb5 EU proposes tougher financial supervision http://www.ethiopianreview.com/business/4287 Wed, 30 Sep 2009 10:35:43 +0000 http://zikkir.com/business/?p=6300 1
EU chief Barroso says the move should inspire the G-20 in Pittsburgh

The European Union has presented a draft European law for tougher supervision of banks and financial markets across Europe. The move is a bid to seize the initiative ahead of the G-20 summit in Pittsburgh.

The blueprint presented on Wednesday in Brussels calls for an overhaul of the way financial markets across the EU are governed and for a new pan-European system of financial supervision.

“This European system can also inspire a global one and we will argue for that in Pittsburgh,” European Commission President Jose Manuel Barroso said.

“Our aim is to protect European taxpayers from a repeat of the dark days of autumn 2008, when governments had to pour billions of euros into the banks,” he added.

Better supervision across national borders

The draft laws proposed by the EU commission call for the creation of a banking super-watchdog. The European System of Financial Supervisors (ESFS) would be composed of national supervisors from each member state.

Separately, the proposal suggests the creation of a European Systemic Risk Board (ESRB) to identify risks for the European financial system and to make recommendations to individual countries about what to do.

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There are doubts whether member states are willing hand over power to the EU

The board is to review economic and business trends across the EU spotting dangerous developments, from unsustainable levels of government and private borrowing to rapid exchange-rate shifts.

“This package represents rapid and robust action by the Commission to remedy shortcomings in European financial supervision and will help prevent future financial crises,” the EU’s Internal Market Commissioner Charlie McCreevy said.

Berlin welcomes the new proposals

The German government has welcomed the proposal as a “good basis for future discussion.” A statement by the German finance ministry said that financial supervision across national borders was a central element of better control of financial markets and increased transparency.

Critics of the EU’s proposal warn that the new institutions would lack the power to force national governments to actually change their policies. The supervisors “should be more than a mere club of regulators. They should have real power,” Martin Schulz of the Party of European Socialists (PES) said.

Before the new rules can come into effect, they will need the approval of the European Parliament and the 27 member states.

Backing from Britain will be crucial if the new legislation is to be up and running as planned by the end of the 2010. With London being Europe’s biggest financial hub, the UK has so far been reluctant to give more say to European institutions. – DW-WORLD.DE

]]> 4287 2009-09-30 03:35:43 2009-09-30 10:35:43 open open eu-proposes-tougher-financial-supervision publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6300#comments wfw:commentRSS http://zikkir.com/business/6300/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6300 syndication_item_hash bccbbe3072bac3214d79d6f097804d3a Tax plans dominate German election campaign http://www.ethiopianreview.com/business/4286 Wed, 30 Sep 2009 10:39:54 +0000 http://zikkir.com/business/?p=6302 1
The top tax rate in Germany is 45 percent, but many politicians want that to change

Just days before national elections, tax reform has become one of the central economic battleground issues between Germany’s political parties. So what are the parties’ tax plans and how realistic are their proposals?

Germans pay more of their income in taxes and social contributions than almost anywhere else in the world, according to data from the Organization for Economic Cooperation and Development. Top tax rates reach 45 percent and mandatory pension and health contributions raise the total even higher.

The right: how low can we go?

Political parties on the right have seized upon the tax system’s complexity and high rates as a campaign issue. Chancellor Angela Merkel’s Christian Democrats (CDU) have argued if voters re-elect them and add the pro-business Free Democratic Party (FDP) to their coalition, then they will cut taxes and simplify the system, boosting future growth.

But all three parties on the right are divided on how best to move forward with their tax cutting plans if elected. The CDU has generally expressed more caution, supporting a modest drop in the bottom income tax rates from 14 to 12 percent with no set timetable. But with the CDU’s poll numbers falling in recent weeks, the party has come under pressure from its conservative Bavarian sister, the Christian Social Union (CSU), which wants to make a stronger tax-cutting gesture.

“I won’t sign a coalition agreement that doesn’t include tax cuts in 2011 and 2012,” declared CSU head Horst Seehofer in an interview with the Muenchner Merkur newspaper published Wednesday. His party also wants to reduce the value-added tax, currently 19 percent, for some services, such as those provided by the hospitality industry.

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FDP head Guido Westerwelle wants to drastically overhaul Germany’s tax system

The liberal FDP, on the other hand, wants to do away with the current tax system entirely. Nicknamed the “beer-coaster system” for the size of the tax return forms Germans would have to fill out, the new tax code proposed by FDP head Guido Westerwelle would replace the current graduated system with three rates of 10, 25 and 35 percent based on income.

The party argues that the lower tax rates could actually increase tax revenues by pulling some work from the black market back into the legal economy and by spurring greater investment. But some outside estimates suggest such a tax system would actually reduce government revenue by 35 billion euros annually.

“I think it’s very unrealistic that such tax rates will be implemented,” said Michael Braeuning, an economist at the Hamburg Institute of International Economics (HWWI). Braeuning told Deutsche Welle that having enacted expensive stimulus measures in the past year, no future government can afford to forsake that much revenue.

The left: how much higher should we go?

On the other side of tax debate are the three parties of the left, which differ on details but generally favor tax increases. Merkel’s current coalition partner, the center-left Social Democratic Party (SPD) has said it also plans to cut the bottom income tax rate, though it wants the rate reduced to 10 percent compared to the CDU/CSU’s proposal of a 12 percent rate.

To pay for that cut and to fund more education programs, the SPD says it would bump the top rate up to 47 percent. By doing so, the Social Democrats have positioned themselves as the party of fiscal responsibility.

“There is no room for the tax cuts that others are promising,” the SPD candidate for chancellor, Frank-Walter Steinmeier, said in an interview this week with public broadcaster NDR.

By raising rates on higher-income earners, economist Victor Steiner at the German Institute for Economic Research (DIW) says the SPD’s plans could wind up raising more than enough revenue to pay for tax cuts for workers earning modest wages.

“In the lower income brackets, hardly any tax is paid; income tax payments are heavily concentrated on the upper income areas,” Steiner told Deutsche Welle.

The environmental Green Party and the post-communist Left Party also reject tax cuts. Renate Kuenast, one of the Greens’ top leaders, said Wednesday that the FDP’s tax plans were a “declaration of war on future generations and all people who rely on the support of the state.”

Borrowing from the United States, the Greens want to tax the income of all German citizens living abroad. Currently, only those living in Germany pay German taxes. But with both the Greens and the Left Party highly unlikely to enter government, their tax proposals are “an academic and theoretical exercise,” said the DIW’s Steiner.

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The Left Party wants to “tax the rich” and raise top income tax rates to 53 percent

Both the Greens and the Left party have proposed taxes on stock market transactions as a source of new revenue and as a means of curbing what they say were some of the excesses that led to the market crash and recession.

The Left party has capitalized on the anti-market sentiments of the day with campaign placards that declare “Tax the Rich.” The party also proposes raising the top income tax rate to 53 percent for people who earn over 65,000 euros a year.

Much ado about nothing?

Compounding the philosophical differences between the left and the right of German politics is the cold reality of a large budget deficit and a newly-enacted constitutional amendment known as the “debt brake” which will limit the ability of future federal and state governments to accumulate new debt.

Major tax cuts would be “difficult, if not ambitious,” given the government’s large budget deficit – which is expected to reach 86 billion euros next year – and uncertainty surrounding the robustness of the economic recovery, said Thiess Buettner, the head of public finance research for Munich’s Ifo Economic Research Institute.

“The budget situation is difficult, and given the desire by most Germans to reduce the deficit, the margin for tax cuts is small,” Buettner said in an interview with Deutsche Welle.

HWWI’s Braeuning said that while tax cuts were unlikely, he imagined that a new government could still tackle the tax code.

“More possible is that we’ll see a renovation of the tax system,” Braeuning told Deutsche Welle. He envisioned changes that could flatten the tax rate and increase consumption and energy taxes in order to broaden the tax base and reduce the burden on some taxpayers.

d
With the national debt growing rapidly, some economists say tax cuts aren’t feasible

Although many Germans gripe about high taxes and ingeniously find ways to use every loophole in the system, they’re not expecting politicians to deliver on promises of a tax cut. A survey by Wirtschaftswoche magazine in July revealed that 52 percent of voters thought the government couldn’t afford to cut taxes , while 64 percent of those polled thought their taxes would rise next year. – DW-WORLD.DE

]]> 4286 2009-09-30 03:39:54 2009-09-30 10:39:54 open open tax-plans-dominate-german-election-campaign publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6302#comments wfw:commentRSS http://zikkir.com/business/6302/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6302 syndication_item_hash 2f71b66b3c7e77722d89dcd13b117da8 Watchdog says corruption partly to blame for global financial crisis http://www.ethiopianreview.com/business/4285 Wed, 30 Sep 2009 10:43:19 +0000 http://zikkir.com/business/?p=6304 1
Transparency International is the world’s most important corruption watchdog

A new report by corruption watchdog Transparency International (TI) concludes that corrupt business practices cost society billions and preventing sustainable economic growth.

In its 2009 Global Corruption Report the Berlin-based organization Transparency International said corruption undermines fair competition, stifles economic growth and ultimately undercuts a business’s own existence.

“Fostering a culture of corporate integrity is essential to protect investment, increase commercial success and ensure the stability sought by poor and rich countries alike, particularly as we climb out of an historical crisis,” said Transparency International Chair Huguette Labelle.

The Global Corruption Report documents that in developing and emerging countries, companies paid $40 billion (27.2 billion euros) annually in bribes to polticians and government officials. Ultimately it is consumers around the globe who foot the bill. Project costs increase by at least 10 percent, according to a poll of business executives conducted by Transparency International.

d
Bribery and corruption are problems in the Eurozone

Corporate integrity

“It is not just a question of tackling corruption in business — it is also important for financial and economic stability and the ongoing reforms of the global financial architecture”, the TI report said.

Another concern is the sheer economic power of some companies and business sectors, which translates into disproportionate influence on political decision-making.

The report called on companies to publish regular reports on how they are fighting corruption and to disclose information on financial support for political parties, lobbyists and governments. Transparency International also recommended that governments apply anti-corruption regulations with more vigor.

“It is time that corporations face up to the risk of paying millions in fines and the long-term loss of trust from their customers and shareholders”, said Labelle.

Report discusses Siemens, Volkswagen scandals

3
Siemens has now forbidden corrupt practices

One of the biggest corruption scandals in recent years in Germany involves the electronics giant, Siemens.

The TI report reviews the case and lists the heavy fines imposed. It notes, “with more prosecutions expected, Germany’s largest post-war economic scandal is likely to dominate the news for the next few years.”

However, it criticizes Germany for not learning from the scandal, noting that one of the former Siemens CEOs, who was accused of bribery and corruption, was allowed to continue as head of a major government think tank until the institution was dissolved in 2008.

The report also discusses the more recent VW corruption scandal in which an entire works council accepted large bribes as well as luxury hotel accommodation and, more embarrassingly, visits to brothels to encourage them to accept employer-friendly practices.

Indeed, further examples in the report imply that this is one of the major forms of corruption in German society – big business offering inducements to workers’ representatives to push through management decisions, leading to unfair competitive practices to the detriment of the individual employee.

Concern remains over tax havens

The section of the report concentrating on Germany concludes by turning its attention away from big business to wealthy individuals and the widespread use of tax havens such as Liechtenstein.

It cites the case of former Deutsche Post CEO, Klaus Zumwinkel, who was arrested on charges of evading one million euros in taxes. As a result, Zumwinkel resigned from his post and was later convicted of tax evasion.

That investigation led to the revelation that German officials had spent over four million euros ($6 million) to obtain information about large sums deposited by wealthy Germans in secret bank accounts in Liechtenstein. It’s been argued that the expense was well worthwhile because it’s expected to lead to the recovery of hundreds of millions of euros in back taxes.

Transparency International complains of German inaction

Germany has been sharply criticized by TI for failing to ratify the UN Convention against Corruption during the last legislative period, failing to introduce a corruption register and for not fulfilling transparency requirements when awarding public sector contracts.

Last year Germany was listed 14th out of 180 countries in TI’s annual corruption and bribery rankings. – DW-WORLD.DE

]]> 4285 2009-09-30 03:43:19 2009-09-30 10:43:19 open open watchdog-says-corruption-partly-to-blame-for-global-financial-crisis publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6304#comments wfw:commentRSS http://zikkir.com/business/6304/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6304 syndication_item_hash b76c7b72cebcc47d53a473df262d4ea7 Siemens threatens to sue former executives over bribery settlement http://www.ethiopianreview.com/business/4284 Wed, 30 Sep 2009 10:45:58 +0000 http://zikkir.com/business/?p=6306 1
Three years on, the clouds have not yet lifted

After spending nearly 2.5 billion euros to cover legal bills and fines stemming from an international bribery scandal, the engineering giant wants its former heads to help pay.

Munich-based Siemens AG told a group of former directors that it would initiate legal action against them unless they agreed to pay the company by mid-November.

“As long as we have reached no agreement by that time, the company will file suit,” read a company statement on Wednesday.

The managers being put under pressure include former Siemens CEOs Heinrich von Pierer and Klaus Kleinfeld, as well as onetime board members Heinz-Joachim Neubuerger, Juergen Radomski, Johannes Feldmayer, Uriel Sharef, and Thomas Ganswindt.

All were caught up in the bribery scandal that has crippled the company since 2006.

Siemens was investigated for paying 1.3 billion euros in kickbacks between 2003 and 2006 to potential buyers in 12 countries, including Italy, Greece, Russia and Nigeria. In Germany and in the United States, the company was found guilty of corruption and ordered to pay combined fines of just over a billion euros.

Others back down

Another three former Siemens managers, Klaus Wucherer, Edward Krubasik, and Rudi Lamprecht, agreed last month to pay 500,000 euros each as a settlement for their roles in failing to stop the “unclear payments.”

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Von Pierer still maintains his innocence

Siemens hopes to receive a much larger sum from von Pierer, its CEO from 1992 until 2005. The company has asked him to pay 6 million euros in damages.

Von Pierer has consistently denied any wrongdoing, and refused to comment on whether he would consider settling with Siemens, citing pending negotiations, as well as an ongoing investigation into his alleged administrative offenses by Munich prosecutors.

Siemens hopes to settle the matter of payments by mid-November so as to meet a deadline for printing and mailing annual reports ahead of the company’s annual meeting on January 26. – DW-WORLD.DE

]]> 4284 2009-09-30 03:45:58 2009-09-30 10:45:58 open open siemens-threatens-to-sue-former-executives-over-bribery-settlement publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6306#comments wfw:commentRSS http://zikkir.com/business/6306/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6306 syndication_item_hash 9ddebac6f1e718c3d9a501661e542310 Belgian and German Opel workers come together in solidarity http://www.ethiopianreview.com/business/4283 Wed, 30 Sep 2009 10:48:36 +0000 http://zikkir.com/business/?p=6308 1
Employees and union members in Antwerp demanded that no plants be closed

Opel workers from Bochum have joined their counterparts in Antwerp to protest against the threatened closure of the carmaker’s plant in Belgium.

Thousands of Opel workers demonstrated at the automaker’s only Belgian factory on Wednesday against possible job cuts at General Motors’ European plants. Opel’s designated buyer, Canadian company Magna, has said that its restructuring plan foresees up to 11,000 job cuts on the continent.

Fritz Henderson, chief executive of General Motors, told the latest issue of German magazine Auto Motor und Sport that the new company – called “New Opel” – will need to close at least one factory.

“Antwerp is an option, but no final decision has been made,” Henderson said. The Belgian plant employs about 2,600 people. Opel employs some 49,000 workers across Europe.

German solidarity

The workers in Antwerp were joined by their colleagues from the German factory in Bochum – also a potential candidate for closure. Spanish and British union officials were also present.

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German auto workers held signs reading “one for all and all for one”

“We are here to show our solidarity with our Antwerp colleagues,” Peter Scherrer, general secretary of the European Metalworkers’ Federation, told the crowd. “If we do not fight it could be Bochum, Luton or Zaragoza tomorrow.”

Klaus Franz, chairman of the European Employee Forum of General Motors, said employees of Opel plants across Europe will fight plans by Magna to close any of Opel’s plants in Germany, Spain, Britain, Poland or Antwerp.

No conditions for financial assistance

Germany is backing the Magna deal with 4.5 billion euros ($6.6 billion) in loans and credit guarantees. But the European Commission warned on Wednesday that such guarantees may not be tied to job-saving conditions.

“State funding under the Temporary Framework is meant to tackle the financing problems due to the credit crunch, and cannot be used to impose political constraints concerning the location of production activities within the internal market,” said Jonathan Todd, spokesman for the EU Competition Commissioner Neelie Kroes, in Brussels.

Todd said the Commission would “carefully examine whether the German authorities have attached – de jure or de facto – additional non-commercial conditions to their aid for New Opel concerning the location of investments and/or the geographic distribution of restructuring measures.”

This also applied to any negotiations with other European countries.

EU Industry Commissioner Guenter Verheugen said a lasting solution for Opel could only be found if the state’s financial assistance came without conditions.

“The employees in Antwerp have the same rights to their jobs as the employees in every other location,” Verheugen told German television ZDF on Wednesday. “It can’t be that one country finances a solution at the expense of others.” – DW-WORLD.DE

]]> 4283 2009-09-30 03:48:36 2009-09-30 10:48:36 open open belgian-and-german-opel-workers-come-together-in-solidarity publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6308#comments wfw:commentRSS http://zikkir.com/business/6308/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6308 syndication_item_hash b2e17370e6ad45ec07a025a7916cee0a Opinion: The G-20 summit in Pittsburgh – a new chapter in world politics? http://www.ethiopianreview.com/business/4282 Wed, 30 Sep 2009 10:50:39 +0000 http://zikkir.com/business/?p=6310 1
The Group of 20 leading economies meets in Pittsburg on Thursday and Friday. The summit will yield few concrete results but will show that the days of the G-8 are over, says DW’s economics editor Henrik Boehme.

There won’t be a shortage of grand words when the G-20 summit wraps up on Friday in Pittsburgh. At the press conference at the end of the finance summit, world leaders are likely to present themselves as the saviors of the world. For US President Barack Obama it will be a chance to grab some positive headlines to counter-act the recent dive he’s taken in recent opinion polls.

For German Chancellor Angela Merkel it will be the grand finale of her election campaign. Two days ahead of Sunday’s general election in Germany, it’ll be a welcome opportunity to appear on the international stage.

It’s easy to guess that the overall tone of Pittsburgh will be one of content and optimism.

But what is it that the world’s 20 leading economies have actually achieved since their first meeting in Washington in November 2008? The goal was an overhaul of the world’s financial architecture to prevent a similar crisis from ever happening again.

Taming the greed

The idea was that no financial product and no financial market should be able to escape regulation in the future. Special focus was placed on speculative hedge funds, rating agencies, bankers’ bonuses and tax havens. In short: the aim was to tame the greed that many experts consider the heart of the global crisis.

Today there’s often a sense of resignation – a sense that no one has really learned from the crisis. Once again the headlines are filled with news about fat bonus payments. Banks are once more making billions in profits, and the party on Wall Street and other financial hubs around the world seems to be continuing as if nothing happened.

While this perception may be true in some cases, there have been changes for the better. Several financial institutions have indeed undergone reforms and begun questioning the excessive payouts handed out on their top floors. Likewise, first steps have been taken against tax havens across the world. And indeed, banks today have to have more equity capital to protect them against risky speculation based on borrowed capital.

And yet, all of this is not enough. Far too much the debate in recent weeks has focused on bonus payments. It’s a debate playing into the hands of election campaigns: by curbing bankers’ bonuses, politicians can be sold as battling gross social injustice.

But reforming the banking system will take more than merely putting a cap on bonus payments. Banks should be limited in their size to prevent financial institutions from growing into giants so large that their failure could cause the entire financial system to collapse. Similarly, banks mustn’t be allowed to blackmail governments into bailing them out only to prevent further havoc on the markets.

EU and US no longer in the front row

The agenda that the EU will bring to Pittsburgh clearly leans in this direction. But European leaders won’t be able to push it through. The world’s two biggest banks these days are not from Europe or from the US – they are from China. And it’s hard to imagine that the Chinese president will agree to any measures that may interfere with the balance sheets of Chinese banks.

There is yet another problem: The good news about a budding economic recovery in Europe and the US has taken some of the pressure off institutions and decision-makers charged with implementing reforms. Germany, for example, has already climbed out of recession.

So the challenge of Pittsburgh will be to once more build on the momentum gained at previous summits in Washington and London. The danger is that in the end there will be little more than declarations of good intent.

One thing that is sure to emerge at the Pittsburgh summit – as in the cases of Washington and London – is the sketchy outline of a new world order.

The G-8, as the self-declared rulers of the world, is a thing of the past. It cannot solve the problems that its own members have brought upon the world.

The G-20 is much more suitable forum for representing the world, which is why the upcoming G-8 summit in Canada next year will most likely simply be changed into a G-20 meeting. – DW-WORLD.DE

]]> 4282 2009-09-30 03:50:39 2009-09-30 10:50:39 open open opinion-the-g-20-summit-in-pittsburgh-%e2%80%93-a-new-chapter-in-world-politics publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6310#comments wfw:commentRSS http://zikkir.com/business/6310/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6310 syndication_item_hash 927db61bbc444682fea31e18343d1a88 Flying colours http://www.ethiopianreview.com/business/4324 Wed, 30 Sep 2009 11:17:44 +0000 http://zikkir.com/business/?p=6334 How Asian Paints outperformed rivals in the slowdown.

Indian soldiers take great pride in the crease of their trousers, the twirl of their moustache and the shine on the metal and leather they wear. Arms, medals, epaulettes are all brought to the perfect shine before a parade. One key item of inspection is the glint on the ammunition boots. One enterprising regiment, the story goes, instead of using polish bought a box of Asian Paints paint and used it to good effect on the boots. Asian Paints Managing Director & CEO PM Murty doesn’t know if it’s a true story, though he joined the company way back in 1971. What he does know is that such small purchases can make the distinction between profit and loss, survival and extinction.

Asian Paints has for long sold very small cans of paint which are used to colour the horns of bulls during the Pola festival in Maharashtra and the auspicious small red and yellow stripes at the bottom of the front door of Tamil Nadu homes. This might not always be remunerative, but it has given a tremendous boost to the company’s brand recall. When the market is up, everybody makes money. But when the chips are down, only resilient brands stay afloat.

Small efforts like this have made Asian Paints the leader in the Rs 7,500-crore per annum market for decorative paints with a market share of 50 per cent. (Companies make industrial and automotive paints also but those account for not more than a quarter of the overall market for paints in the country. These segments too have seen some improvement in sale of late.) In the last one year, Asian Paints has improved its share by about 400 basis points. Rivals include Kansai Nerolac, Berger and ICI (Dulux and Velvet Touch).

A dominating market share helps in many ways. A top executive of a North-based paints company says that Asian Paints has a competitive ratio of two (its market share, in other words, is more than twice its nearest rival), which gives it a huge advantage over others in purchase of raw material as well as distribution. “It can afford to participate in segments where the profit margins are not so good,” says he. “It also uses it to leverage its position with the dealers.”

Not just did it grab a larger chunk of the market, Asian Paints also outperformed the industry by a sizeable margin in the quarter ended June 2009. Taking away share from rivals, Asian Paints’ grew its sales 18 per cent, while industry revenues were up 12 per cent.

That has happened in spite of the severe bind that the real estate sector finds itself in. Developers have decided to go slow on new projects as real estate buyers — individuals as well as companies — have turned cautious. Individuals too are not building homes at the same pace as before. Most paint companies have an eye on the current festival season. If people paint their homes in large numbers, there is still a slim chance that they could reach last year’s 18 per cent growth in sale revenue. Or else, they will have to settle for lesser growth. “The real test for us will be in the next two months,” says ICI India Director MR Rajaram. But Asian Paints looks on course for 20 per cent growth. What does it have that rivals don’t?

Small towns, big profits
The trick, according to Murty, is to discover the right catchments, keep track of them and stay in close touch with the customer. What helped Asian Paints weather the slowdown, which was more pronounced in cities such as Mumbai, Bangalore but less so in Delhi, was the brisk business that it did in the more resilient economies of smaller cities and towns. Tapping its strong dealer network, the company was able to cash in the relative prosperity in these markets and take away share from competing brands.

Most paint companies, mind you, are still dependent on urban markets for up to two-thirds of their sales. The economic slowdown has impacted towns and cities worse than villages. And this has dealt them a severe blow. For instance, ICI, now a part of Akzonobel of the Netherlands, grew just 7 per cent in the quarter ended June 2009. Others have fared little better.

Asian Paints has turned conventional industry wisdom on its head. Its volume growth has been driven largely by Tier II and Tier III cities, which today fetch approximately 65 per cent of its revenues. Says The Boston Consulting Group Partner Abheek Singhi: “Even though the company has to deal with customers, dealers and painters in hundreds of cities and towns, it has done a good job of building relationships with all of them.”

The company was perhaps the first to realise that aspirations have risen in such markets because of the media over-reach and rising disposable incomes, and that consumers are no longer overawed by brands. With this in mind, Asian Paints positioned its Royale brand in such markets. Result? Royale sells as many cans in smaller towns as it does in metros, the premium image of the brand notwithstanding.

PricewaterhouseCoopers Leader (retail practice) N V Sivakumar says that Asian Paints has gained in the slowdown by offering good brands at competitive prices and across price points. Agrees Murty: “There are smaller construction firms which tend to look for less expensive brands at times like this. So even if the cost of distribution increases as you move down the value chain, we offer the products, though maybe in a limited range.”

The Asian Paints range has always retailed at a premium to the competition — even today it commands an average premium of 5 to 10 per cent. But it is careful to see that volumes don’t suffer. Judicious price increases have been taken when it needed to pass on the higher cost of inputs. For instance, when costs went up last year in the wake of soaring crude oil prices, the company raised prices 16.7 per cent, but spread it over six takes! And when the government cut excise duty to stimulate the economy, it dropped prices by about 12 per cent in five cuts. The planned phase-out of lead by 2012-13 is expected to raise the industry’s costs by 3 to 4 per cent. Its sheer size, rivals feel, will give Asian Paints an edge over them.

“We have never been reluctant to pass on the benefits of lower input costs and we don’t believe in special rebates or promotions; we feel that everyday low prices work best,” says Murty. Asian Paints President (Decoratives) KBS Anand says it doesn’t make sense to cut prices too much because the competition inevitably follows suit.

Also, the success of Royale in the smaller markets and the fact that that emulsions now sell more than distempers indicate that more customers are upgrading. In this scenario, a price war is hardly advisable. Asian Paints wants to make the most of the upgrade. And for this it is important that the customer interface with the brand improves. “The idea is to bring in more customers into the shops; old-style cramped hardware stores are no longer acceptable,” says Murty.

Direct to consumer
In a recent initiative, Asian Paints has opened a 6,000-sq feet signature store in Bandra, an up-market Mumbai suburb, to show customers how a home can be done up. Incidentally, the place doesn’t sell a single can of paint — it is merely a meeting ground for customers and interior designers. Anand says the idea is to expose customers to new ideas and concepts that aren’t always possible in a small store, most of which are packed with tins of paint and don’t even have a wall free.

That apart, a brand new chain of smaller premium retail stores called “Colour Ideas” has been rolled out. At least a dozen stores should be open by the end of the year; these are what Murty calls “a slice of our signature store.” Again, the idea is to provide the consumer with the right ambience in which to check out all the options and get some advice, especially since not all dealers have the resources or time to educate customers.

Of late, Asian Paints has made quite a splash of its samplers. “They cost just Rs 60 for 200 ml but help buyers visualise much better what the wall would really look like so that they’re not disappointed later,” explains Murty. With all this, the business has become far less seasonal in the metros. Then there are initiatives on the company’s website — from chatting with interior decorators to checking out options for colours and buying books. Asian Paints also connects with customers through the Home Solutions initiative — a home-painting service which was started in 2000. The service is used by almost 20,000 homes every year.

Emotional connect
Asian Paints has several decorative paint brands. For exteriors, there are Apex, Ultima and Duracast. For interior distempers, there are Tractor and Utsav. In emulsions and enamels, its flagship is Royale. Given that consumers are moving up the value chain, Royale is Asian Paints’ passport to success.

In the early part of the decade, Asian Paints was not the leader in the premium space — the spot belonged to ICI’s Velvet Touch. The company felt it needed to create a campaign that positioned Royale as a lifestyle brand and if that meant spending more and using a star, it should be done. That is when it signed on film star Saif Ali Khan. “We felt a star would lend aspirational quality to the brand and it seems to have worked well because we are now the leader in the premium space,” says Anand. In the process, Royale, which started out as a sub-brand, is now a full-fledged brand in itself. The benefits of aspirational positioning are paying off because spending power has increased; top-end products that fetch higher margins sell more than the products in the value-for-money range. Emulsions, for instance, are outselling distempers.

In fact, Royale campaigns now don’t even mention Asian Paints in the narrative. Asian Paints has never held back when it comes to promoting its brands and Murty says ad spends, as a share of sales, may even increase partly to deal with competition from new entrants such as Sherwin William and also because new launches require to be pushed. “We need to constantly remind the consumer of the brand,” he says. Earlier in the decade, Asian Paints decided it needed a twin branding strategy and so it launched the umbrella brand through the “Har ghar kuch kehta hai” (Every home says something) campaign to build an emotional connect with consumers. The pull that the brands have created has made life that much easier for the company’s 26,000 distributors, especially in the downturn.

Game changer
In 1998, the tinting machine made its advent in the paint market, which allowed customers to mix colours to get the particular shade they wanted. This changed forever the way business was done. BCG’s Singhi points out that the tinting machine was a game changer because it made the supply chain so much more efficient. “Typically, fewer SKUs (stock-keeping units) mean less choice for the customer but tinting machines allow the dealers to hold far less inventory than they would otherwise need to offer customers a choice of 1,300 colours,” he explains. Adds Anand: “The machines brought more customers into the shops, the dealers became more involved in the product and that increased the awareness about the brand.”

Today, more than half the dealer network of Asian Paints comprises Colour Worlds, as the shops with tinting machines are known. The company’s plan is to convert the other half also over the next five years. PwCs Sivakumar says where Asian Paints scores over others is its ability to partner and hand-hold dealers: “It’s not enough just to have dealers in place, it’s as important to train them about new technologies and get them more involved.” Anand says so much time is spent these days teaching dealers that when a new product is launched, there can be a six-month gap between the time it hits the market in Madurai and Jalandhar.

Dealers are a key stakeholder in the company’s business model. It, therefore, tries to ensure that dealers always make enough money — they are eligible for price discounts, especially on cash purchases and during some seasons. The strategy is obviously working because otherwise the volumes wouldn’t have come through. IDFC SSKI Managing Director Nikhil Vora says: “Asian Paints is not a lethargic leader. It has grown the market, innovated with delivery mechanisms and products, and virtually managed to insulate the business from downturns.” This company clearly won’t allow itself to be painted into a corner. – Business Standard

]]> 4324 2009-09-30 04:17:44 2009-09-30 11:17:44 open open flying-colours publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6334#comments wfw:commentRSS http://zikkir.com/business/6334/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6334 syndication_item_hash f2f368c781c1de95ad19559e1ea67766 Compaq’s new innings http://www.ethiopianreview.com/business/4323 Wed, 30 Sep 2009 11:19:09 +0000 http://zikkir.com/business/?p=6336 The tri-nation cricket tournament in Colombo, involving India, Sri Lanka and New Zealand, ended a few days back. But for brand Compaq, it’s the start of a new innings – something it wants to repeat every year.

The trophy itself was an innovation – the theme of Compaq. It was the world’s first digital Cup with a Q (Compaq’s logo)-shaped LCD screen. The screen will flash match-winning moments, key statistics, photographs and fan messages.

It’s the first time that Hewlett Packard (HP) has sponsored a cricket tournament in India to increase the brand awareness of Compaq. It was an “expensive affair”, says the company, but the return on investments has been fabulous.

Shubhodip Pal, Head of Consumer Marketing, Personal Systems Group, HP India, says the buzz that the 360-degree campaign created has been amazing.

The print advertisements led to 18,721 queries through SMS and 46,249 phone calls and the TV ads generated 67,329 SMSs and 32,712 calls. The other advantage of being the title sponsor was the exposure that the brand got. The total electronic media coverage was all of 18 hours and the company conducted regular online and on-ground activities. HP also created a dedicated portal called compaqcup.com that had 121,327 unique visitors within 12 days. It registered 512,954 page views and received 22,741 messages for the Cup.

The SMSs, calls and page views just went through the roof minutes after the Men in Blue lifted the Compaq Cup.

Pal says the Compaq Cup helped it connect better with the youth. “Cricket made sense as we are focusing on the youth in a country where cricket is a religion”, he says.The strategy was also in tune with HP’s global model. HP, for example, is in a sponsoring tieup with the NBA in the US.

When it comes to marketing and branding, HP has many firsts to its credit. It was probably the first IT company to have started celebrity endorsements. “When we started with Shahrukh Khan almost three years ago, it was clearly to create an awareness of branded products in a market where white-box (assembled PCs) had close to 50 per cent market share. Our market share since the association with Shahrukh has gone up significantly,” says Pal. Compaq has also been associated with the mega star’s team, the Knight Riders.

So though the association with Khan continues, the title sponsorship of an international cricket tournament will also become an annual feature. Twice every year, the company conducts a survey to understand the pulse of the country. A year back, the company saw a shift from desktop to mobility. “During that time, we decided to move away from our family focus to individuals and from desktop to mobility,” Pal says.

For HP, branding is also about product launches. The company has a six-month cycle in terms of product road-map. So its campaign generally coincides with the launch of a new product. So, a new line of HP Pavillion was launched during the Will’s Fashion Week in October 2008, and HP launched Compaq 610 series of laptops during the Compaq Cup.

The campaign, however, has had its share of detractors, too. Many IT analysts say while there is a need for branding initiatives in view of the growing personal computer market in India, others feel such mass-market campaigns may not be necessary. “The Indian PC market is maturing and we are seeing an exponential growth of consumers. But unlike mobile phones, PCs have not been that relevant to the masses,” says Diptarup Chakraborti, principal research analyst, Gartner India.

Chakraborti also says though HP is number one in the PC and laptop segment, its sales growth on a quarter-on-quarter basis has been marginal (2.9 per cent). Competitors, however, have been able to grow the market by a few percentage points more.

But that’s precisely the reason why Compaq Cup became that much more relevant for HP. – Business Standard

]]> 4323 2009-09-30 04:19:09 2009-09-30 11:19:09 open open compaq%e2%80%99s-new-innings publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6336#comments wfw:commentRSS http://zikkir.com/business/6336/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6336 syndication_item_hash 2f2f46f40f96c5c5d1209b4bd0dbc7dd Has the devil got his due? http://www.ethiopianreview.com/business/4322 Wed, 30 Sep 2009 11:20:22 +0000 http://zikkir.com/business/?p=6338 While the jury is out on this, Onida says its products are the real heroes of the new campaign.

The jury is out on Onida’s decision to put the devil to pasture after 26 years. While some say the mascot had lost its relevance, there are many who feel that the devil and the brand were so integrated that Onida might face an identity crisis.

It is not the first time that Mirc Electronics (Onida’s brand owners) has withdrawn the mascot. It was earlier scrapped in 1998 for the same reasons that have been cited now. The explanation then was that Indian consumers no longer find the devil and the famous tagline – Neighbour’s Envy, Owner’s Pride – relevant.

But Onida brought back the devil, albeit in a modern avatar, after six years of drifting around.

This time, however, Mirc seems determined to bury the devil. A new-age couple setting up their home with Onida products has taken the devil’s place with a new tagline “Designed with you in mind” (Tumko Dekha Toh Yeh Design Aaya).

KPMG Advisory Manager (Consumer Markets) Anand Ramanathan says, “Onida needed to bring down the average age of its audience to remain relevant.” Add to that the fact that Onida is now a multi-category player, and not just a TV company, which the devil represented. Also, Indians have gone much beyond envying a neighbour’s TV.

“Most people still think of us as a TV brand. This campaign will make the audience see Onida in its entirety,” says Onida Vice-President (marketing, sales and service) Sriram Krishnamurthy. Onida expects the campaign to increase its national share in the non-LCD television market from 11 to 13 per cent, and in DVD players from 10 to 15 per cent by the end of the year. For the more recent product lines, Onida will have to bide its time. “For a category like durables, market shares don’t change overnight,” says Ramanathan.

But no one can accuse Onida of not trying hard. The TV and print ads categorise the products under different sections such as ‘Cook’, ‘Theatre’ and ‘Wash’ to highlight the features of its microwaves, TV and DVDs and washing machines respectively. Come February, Onida Chill on how friendly Onida air-conditioners are, would also get aired.

But Onida’s detractors say the company has been facing a marketing problem and not a branding problem. People recognised the brand and loved the devil, so there was no point in trying to reinvent the wheel again and replace it with a generic icon such as a couple. “Even the devil succeeded because it was backed by products that really created envy in others,” an analyst says.

But Krishnamurthy says that’s precisely the reason why product features are the heroes of the new campaign – something that will set Onida apart from other players. Onida’s DVDs, for example, come equipped with SD/ micro-SD card readers, apart from the usual media readers such as a USB port and CD-drive, to allow users to plug and play content recorded on phones directly into the player.

“An Onida TV I had bought 20 years back came with a slot for the remote control that wasn’t there in any other product. But the company never talked about these things,” Krishnamurthy says.

Now, Krishnamurthy and his team are not only talking about it but are also trying to walk the talk by aligning Onida’s points of purchase. Historically, Onida has relied on pulling the consumer to stores rather than pushing it through trade. But it realised that a brand can’t ignore pushing its products with dealers anymore.

So, Onida is opening 10-12 exclusive stores this year. The company is also streamlining its servicing by installing a national hotline (next month) and is gearing up for quicker turnaround time by striking deals with new logistics partners. Even though it would be doubling its spending – Rs 100-120 crore from Rs 60 crore now – on the new media campaign, the brand would also focus on word of mouth. “The seasoned media consumer is often cynical. So, for certain categories such as ACs, we would depend on referrals and word of mouth,” explains Krishnamurthy.

Onida is also reaching out to markets like the north and the east where it has been traditionally weak. This is where the new brand campaign with a Hindi tagline and a new factory in Rourkee would help. The company hopes that its share of the washing machines market in the north would go up from sub-6 per cent to double digits.

But the strategy hasn’t found favour with many. Ramanathan says “it could be a strategic mistake. Onida should play to its strength and focus on markets where it is strong”.

Most, however, agree that Onida’s aim to take its turnover to Rs 2000 crore this fiscal, up from Rs 1,600 crore last year, is achievable. “There is a lot of scope for growth in certain product segments in consumer durables,” says Ramanathan. He, however, warns against mere cosmetic changes and advocates greater customisation of products.

Others like Ernst and Young Partner and National Leader (retail and consumer practice) Pinakiranjan Mishra says Onida should now fall back on intelligent design and get its pricing right.

The Onida couple, it seems, has their hands full. – Business Standard

]]> 4322 2009-09-30 04:20:22 2009-09-30 11:20:22 open open has-the-devil-got-his-due publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6338#comments wfw:commentRSS http://zikkir.com/business/6338/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6338 syndication_item_hash af4a98f27662f15e4323ec96ae9007d0 IITs, IIMs may camp on foreign shores, indicates HRD http://www.ethiopianreview.com/business/4321 Wed, 30 Sep 2009 11:21:27 +0000 http://zikkir.com/business/?p=6340 The Union Ministry of Human Resource Development (MHRD) has indicated that it may allow the premier Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) to set up campuses in foreign countries once they improve their faculty positions.

The ministry had said it may not be immediately feasible for the IITs and IIMs to open campuses abroad as they are facing faculty shortages and have to undertake 54 per cent expansion in their intake to implement the other backward class (OBC) quota.

“Setting up of campuses abroad may further strain the IITs’ limited manpower and other resources. Also, various memoranda of association of the IIMs will need to be amended because they do not empower them to open campuses abroad,” Minister of State for education D Purandeswari recently told Rajya Sabha members.

The government, one may recall, had turned down a proposal of IIM Bangalore to open a campus in Singapore. The HRD Ministry did not agree to the proposal on grounds that the Memorandum of Association (MOA) of IIM, Bangalore, does not empower the institute to open campuses abroad.

IIMs, however, remain optimistic. “We would like to go abroad with the intention of spreading our name if the government permits us. IIMs are the leaders of education in the country and should be allowed to set campuses in developing countries. I think it was a missed opportunity for the IIMs as there is a huge potential out there,” says IIM-Ahmedabad Director Samir Barua.

Among developing countries, the IIMs favour the Middle East, Malaysia and Africa as these are the growing economies. Barua explained that IIM alumni and visiting faculty can be of help in manning the courses and that will also ensure the quality of delivery. “Faculty is a problem but they should not be paid what they are paid here and the students also should not be charged the same fee as here,” added Singh.

Some directors of these premier institutes, however, say caution must be exercised when going about this issue. “All IIMs look at this as a possibility as international presence will add to the brand. But I don’t think that it’s a lost opportunity as so much is there to be done here. Moreover, the IIMs are not in the business of generating revenue,” reasons Devi Singh, Director of IIM Lucknow.

IIT-Delhi’s director Surendra Prasad concurs that such proposals need be thought about as there are many people in the country whose education is not being catered to. “If we set up a campus abroad then we should know the reason for doing it. What do we expect after such a decision? So, we should not jump to the conclusion of opening a campus before thinking seriously about it,” he adds.

Incidentally, prominent B-schools like the Xaviers Labour Relations Institute (XLRI), Institute of Management Technology (IMT) and S P Jain Institute of Management and Research already have a presence on foreign shores.

One of the early birds, XLRI had established its first campus in Dubai in 2001 where it began offering an executive education programme in collaboration with the Al Abbas Institute of Technology.

IMT, on its part, established its first foreign campus in Dubai in September 2006 and received a license from the Ministry of Higher Education and Scientific Research to offer higher educational degrees. It offers an accredited MBA programme and Executive education to companies operating in the UAE.

At S P Jain’s foreign campuses in Dubai, Toronto and Singapore, students choosing finance or IT do their core curriculum in Dubai and then ‘cross over’ to Singapore to study their specialisations. Those who choose marketing, global logistics and human resources management first go to Singapore for their core curriculum and then move to Dubai for their specialisations. – Business Standard

]]> 4321 2009-09-30 04:21:27 2009-09-30 11:21:27 open open iits-iims-may-camp-on-foreign-shores-indicates-hrd publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6340#comments wfw:commentRSS http://zikkir.com/business/6340/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6340 syndication_item_hash 71a6520b3721a55d0974a7ade383669c Tough law in offing to check capitation fee http://www.ethiopianreview.com/business/4320 Wed, 30 Sep 2009 11:22:29 +0000 http://zikkir.com/business/?p=6342 If an educational institute indulges in malpractices like failure to deliver on its promises and charges capitation fee, it will face the prospect of closure, according to a law being prepared by the Human Resource Development Ministry. Seeking to bring an end to the illegal practice in technical professional colleges, the ministry has prepared a draft legislation, which prescribes cancellation of registration of annstitute for charging capitation fee.

“Capitation fee will be covered under the legislation prepared by the ministry to curb educational malpractices. Institutions wil lose recognition if they resort to such malpractices,” HRD Minister Kapil Sibal told PTI.

The anti-malpractice law is being prepared in view of large number complaints against institutes indulging in malpractices like not providing the kind of education and other facilities as promised in their prospectus. A government-appointed committee recently said these institutes had a free run as regulatory bodies had failed to check the illegal practice, partly due to reluctance to sort out the problem.

The committee on Renovation and Rejuvenation of Higher Education, headed by Prof Yashpal, also said that private professional institutes were charging up to Rs 40 lakh from students as capitation fee.

“If an institute promises something and delivers something else, that will amount to malpractice and the institute will face cancellation of recognition.”

Sibal said the major reason for capitation fee was the a mismatch between demand and supply in professional education. The government is opening new institutes and expanding education system to sort out the problem.

“If there is a balance between demand and supply, there will not be any capitation fee. When there are more colleges, people will not go to the colleges charging capitation fee. Capitation fee is given when the children have no merit and parents have money,” he said.

The government will make accreditation mandatory for institutes to ensure quality. The IITs, which were reluctant to the idea, are now willing for accreditation, he said.

When pointed out that poor students were unable to afford the high fee in professional colleges, he said government will help with loans. “Professional education has to be costly. The cost is high because you need high quality equipment. Being a poor country, in principle we do not accept that the child whose parents cannot afford full fee is denied admission to a professional course,” he said.

The state has to devise a system that no child should be denied admission for lack of paternal resource. So there will a funding scheme under which the institute gets fee to maintain quality and the child gets the money to pay to the institute without having to worry his parents, Sibal said. He added the cost of higher education in the country was less than that in any other country.

“The fee in St Stephens today is Rs 18 per month… Children have to pay Rs 5,000 a month in a school. Paying Rs 18 in colleges is not right. If you want to go to higher education, you have to pay some amount of money,” he said. He said the government wants to conduct an all India exam after class 12 for admission into universities.

“It will apply to medical, engineering colleges and also commerce stream as there is no diversity in these subjects. This will happen in two to three years time,” he said. – Business Standard

]]> 4320 2009-09-30 04:22:29 2009-09-30 11:22:29 open open tough-law-in-offing-to-check-capitation-fee publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6342#comments wfw:commentRSS http://zikkir.com/business/6342/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6342 syndication_item_hash 2df93bb42548c89b51578dd810d71aa3 B-schools on experimental mode for smoother placements http://www.ethiopianreview.com/business/4319 Wed, 30 Sep 2009 11:23:34 +0000 http://zikkir.com/business/?p=6344 On the back of the global economic slowdown most management institutes last year, had to take steps like extending their final placement week by a few days and inviting more companies to campus to ensure better work opportunities to their students. This year, while the apprehension remains over how the summer and final placements could pan out, B-schools simultaneously see rays of hope.

Placement officials say institutes have started polls with students to know who their preferred recruiters are so that placement slots could be alloted. Slot zero is the most coveted of the slots usually with the best companies from the finance, banking and consulting sectors making offers. However, with the financial meltdown, a number of finance companies have frozen hiring giving way to sectors like retail and FMCG at the top slots along with traditional favourites like consulting and private equity.

Institutes have started communicating with potential recruiters for the upcoming summer placements in October-November and are looking to invite companies from diverse sectors for the process.

“Unlike earlier times where companies hired in large numbers, recent trends have shown that it is better to invite more companies as the number of people hired by each company is fewer than before,” says Sapna Agarwal, head of career development services at the Indian Institute of Management, Bangalore (IIM-B). The institute will be placing 260 students from the post graduate programme and 70 from the first batch of the executive post graduate programme. At XLRI, the institute plans to invite around 70-80 companies for the 240 students it will place for summer placements.

Most institutes had extended their placement process by a few days with some of them even extending to a month to ensure all their students got placed with good offers. However, this seems to be developing into a norm for B-schools gradually.

“If last year, management institutes had to extend the placement process by few days out of compulsion due to the economic scenario, this year they are planning to do it voluntarily. Also, students, who were earlier arrogant and sought big pay packages have learnt a lesson and are now seeking better roles and profiles in jobs than salaries. Which is why instead of inviting all the top companies for slot zero, we are planning to create a level playing field by extending the placement process. This way the focus on slot zero would lessen and both companies and students can spend more time with each other,” says Nilanjan Chatopadhyay, faculty member at SP Jain Institute of Management & Research (SPJIMR).

Both top and mid-rung companies as well as students, according to Chatopadhyay, have been demanding more time for interviews.

“Companies want to be sure they choose the right candidate. Similarly, students want to be sure about the roles and job profiles and not merely pay packages. So from an average of 36 hours when all students used to get recruited, we are now looking at placement process of over 200 hours,” he added.

Similar views were echoed by Sapna Agarwal, head of placement at IIM-B. “We see an increasing trend of recruiters wanting more in-depth conversations with students. Generally recruiters spend more time with students during the PGP lateral process as packages are customised for them as compared to entry-level recruitment where there are fixed packages,” she said.

“There is definitely more optimism shown by the industry this year. We expect banks and PSUs to hire from our campus. Last year was an unusual placement season for us as we had to extend placement by a few days. We will have a better idea after summer placements this year,” said NR Bhusnurmath, placement dean at Management Development Institute (MDI) Gurgaon.

Agarwal said that recruitment for the executive programme students would start from November and go for three-four months in a lateral process considering the average work experience of 7-10 years. Even from the PGP course, around 60-65 per cent of the batch have work experience before joining the programme and stand a chance of choosing lateral placements over the one week final placement. – Business Standard

]]> 4319 2009-09-30 04:23:34 2009-09-30 11:23:34 open open b-schools-on-experimental-mode-for-smoother-placements publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6344#comments wfw:commentRSS http://zikkir.com/business/6344/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6344 syndication_item_hash 9f64aad4388f8e2a1b49a4e7b2b0c8f3 What’s your EQ? http://www.ethiopianreview.com/business/4318 Wed, 30 Sep 2009 11:24:38 +0000 http://zikkir.com/business/?p=6346 Let’s face it. Do you think people sprint home from work, switch on their TV sets and then wait with bated breath for ads to come on? Or, rise and shine at dawn to feverishly scan newspapers so they can enjoy the latest puns churned out by copywriters? Could it just, just be possible that listeners rabidly switch between FM channels so they can catch the latest jingle for Beige And Handsome Skin Whitener?

You know it’s quite the contrary. The fact of the matter is that besides the people who create the advertising and the clients who run it, nobody’s life is earth-shatteringly altered by an ad. People have reasonably more important things to do. Like getting their kids ready for school each morning. Or, concentrate on multiple pizza toppings in front of their TV sets. Or look at their mobile phone for the 979th time in the day. But ads? You’d find it a trifle hard to discover somebody risking his life so he can reach home in time to catch the new Paan Parbat ad on TV.

Now let’s examine how ads are usually encountered. Most newspapers are quickly skimmed through on toilet seats. And it’s safe to assume that newspapers are read for news, not some smart-alec advertising headline. Your TV ad will probably hit a viewer while he’s just watched Sachin’s stumps go cart wheeling and is cursing every commercial break in sight. And that internet banner is quickly minimized into oblivion, the second it tries to pompously intrude on to the main stories on the home-page.

Quite a bit of competition for our little piece of advertising, don’t you think? The truth of the matter is that advertising is viewed mostly as a rude intrusion. After all the money that has been spent producing an ad and the even greater sums spent running it, the poor thing is not really welcome at first sight.

What then is the solution? How do you prevent that viewer from playing Fastest Finger First as soon as your ad begins? Well, you have to remember that you are part of the entertainment business.

Pretty much in the way the role-reversal ad for Amul Macho entertains. The whole portrayal of men being treated in the same manner as the Bollywood women of yesteryear films is quite hilarious. Spoofs on Bollywood are nothing new. What sets this apart is spoofing the spoof. Getting men to bear the brunt of what is usually reserved for women, amidst the background of kitsch, melodrama and exaggeration. The part where the domineering girl on the motorbike brakes hard forcing the guy gingerly perched behind to fall all over her is worth switching many channels to see. We’ve had enough of boring ads showing beefed-up forty something heroes, stretching their booze and steroid infested biceps in various banians. The Amul Macho ad is a refreshing change. The genuinely high Entertainment Quotient ensures you won’t tire of repeat viewings.

Advertising is a very serious business where tons of serious money and serious effort is expended. It better be entertaining for it to work. – Business Standard

]]> 4318 2009-09-30 04:24:38 2009-09-30 11:24:38 open open what%e2%80%99s-your-eq publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6346#comments wfw:commentRSS http://zikkir.com/business/6346/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6346 syndication_item_hash b305508fa52d3104426ca999bc1218ad Bailing out recession-hit overseas aspirants http://www.ethiopianreview.com/business/4317 Wed, 30 Sep 2009 11:25:42 +0000 http://zikkir.com/business/?p=6348 Many international institutions and governments are keen on offering scholarships to Indian students this year.

Aparna Dutta had applied for a loan to fund her plans of studying in Melbourne last season. However, the amount sanctioned from the bank was not enough to cover her fees and expenses. She then applied for a scholarship for 2010 and now plans to use both the loan and scholarship money along with a part-time job of 20 hours to pay for her tution fees and living expenses.

The global meltdown and weakening rupee had compelled many students to postpone their plans of going abroad for higher studies and many ended up taking admissions in Indian institutes.

The numbers tell the story. In 2007-08 the number of Indian students going to universities in the US rose 12.8 per cent to 94,563, making India the largest source of foreign students in the United States. But due to tightening credit markets and a global financial slowdown, Indian students are still finding it tough to secure loans to study abroad, and many are less willing to take on huge amounts of debt.

With the economy on its way to recovery, however, students like Aparna who had previously put their plans of studying overseas on hold, now have a ray of hope. Amid aniticipation on whether Indian students will plan for higher studies in recession-hit countries, many international institutions and governments are keen to offer scholarships to Indian students this year.

Experts advise Indian students seeking financial aid to study abroad, to avail of scholarships or fellowship programmes that are offered by Indian and international universities, governments, corporates and charitable trusts. Students can also blend procured loans with on-campus jobs and apply for scholarships.

Following the racial ‘curry’ attacks in Australia, the Australian government is all set to announce scholarships for students specifically from India, in a bid to promote Australia as a safe education destination. The Victoria government has a $14 million international education strategy out of which it plans to spend $400,000 on international student exchange scholarship programme. The programme is expected to support 20 Victorian and 20 international students to undertake study overseas.

Besides, there are various governments including Japanese, Chinese, Mexican, Italian, Turkish and Korean, to name a few, which have been offering scholarships to Indian students. Some of the courses under the programmes are conducted entirely in English and do not require the knowledge of the respective national/local language in order to be eligible for the scholarships.

The Inlaks Shivdasani Foundation, for instance, has introduced scholarships for PhD students, besides its existing scholarship programmes on fine arts, music, sports and theatre for Indian students aspiring to study in top US, European and UK institutions.

Similarly, New Jersey-based ETS, the creator of TOEFL has come up with the ‘TOEFL India Scholar programme’, which offers seven scholarships up to $10,000 for students planning to pursue studies in the UK, US and Canada in 2010. Under the programme, three $10,000 scholarships and four $5,000 scholarships will be awarded.

“We are pleased to host the programme this year, especially during these hard economic times. Our efforts in recognising academic excellence in India is a part of ETS’ global mission of advancing quality and equity in education. We hope that our scholarship programme will assist students in pursuing their academic dreams regardless of financial status,” says Gena Netten, ETS Manager of English Language Learning.

Other well-known Indian and international organisations offering scholarship programmes include the Tata group’s J N Tata Endowment Scholarships, the Gates scholarship offering scholarships for post graduate studies at Cambridge University, Sir Ratan Tata Fellowship for London School of Economics & Political Science (LSE) and Felix Scholarships.

Felix will offer up to six scholarships at each of the three universities: University of Oxford, University of Reading, School of Oriental and African Studies (University of London), for Indian graduates securing admissions in September-October 2009. – Business Standard

]]> 4317 2009-09-30 04:25:42 2009-09-30 11:25:42 open open bailing-out-recession-hit-overseas-aspirants publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6348#comments wfw:commentRSS http://zikkir.com/business/6348/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6348 syndication_item_hash ce23a3712261b3eb30f6b936f6276dcf SVIM hosts summer project competition http://www.ethiopianreview.com/business/4316 Wed, 30 Sep 2009 11:27:30 +0000 http://zikkir.com/business/6350 In order to create an environment of interaction between MBA students and industries, SV Institute of Management at Kadi had organised a national summer project competition recently.

Titled ‘The Unassailable- National Summer Project Competition’, the platform enabled the students to rectify their own mistakes with canvass of management fundamentals. The institute had invited more than 600 business schools from states like Gujarat, Maharastra, Rajasthan, Madhya Pradesh, Uttar Pradesh and Delhi to send best two projects of their colleges to participate in the competition.

The projects were evaluated by experts from academics and corporate. The event was organised in association with Genie Corporation Ltd., Somany Ceramics, Sushma Namkeen, Aava Natural Mineral water, Business Standard and Young Leader. – Business Standard

]]> 4316 2009-09-30 04:27:30 2009-09-30 11:27:30 open open svim-hosts-summer-project-competition publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6350#comments wfw:commentRSS http://zikkir.com/business/6350/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6350 syndication_item_hash 25c6b5b9606470ef7c1bf0d8465be922 Insurers bank on celebrity appeal http://www.ethiopianreview.com/business/4315 Wed, 30 Sep 2009 11:29:34 +0000 http://zikkir.com/business/?p=6351 Vijay is the name of the character that Amitabh Bachhan has played in many of his movies. In most cases, Vijay belonged to the underprivileged class.

It’s a curious coincidence that the megastar has just become brand ambassador for an insurance product called Max Vijay, a product targeting the poor.

“We want to sell Max Vijay as an FMCG product,” says Anisha Motwani, chief marketing officer of Max New York Life.

Max Vijay is a low premium policy with a premium of Rs 10 to Rs 2,500. The product has so far covered 70,000 households and the insurer aims to take it to over three million in the next three years. The campaign, first launched in Agra, will target the Hindi heartland and then see a nationwide release.

“Max Vijay will help the common man to achieve his dream, as every rupee saved helps him to rise up the hierarchy,” says Piyush Pandey, Executive Chairman and Creative Director- South Asia, Ogilvy & Mather, the agency behind the new Max Vijay campaign.

Max isn’t the only insurer that has started leveraging celebrity appeal. Cricketers Sachin Tendulkar, Virendra Sehwag, Yuvraj Singh, and the winner of Femina Miss India 2009 Ekta Chaudhary have also jumped on the insurance “brand wagon”.

But will celebrity endorsement help in raising insurance awareness? No one is quite sure. Madhukar Sabnavis of Ogilvy and Mather says “since insurance is sold and not purchased, it’s not easy to push up sales. We do not know how successful the endorsements will be, but Bachhan did very well for ICICI Bank.”

The wait-and-watch mode to see the impact is understandable. Except for a couple of examples, celebrities have not been very successful in endorsing financial products.

Insurers, however, believe advertisements will help in attracting eyeballs at a time when higher penetration is on top of the agenda. The life insurance industry has a mere 4 per cent penetration, while it’s just 0.6 per cent for the non-life industry.

Recently, Birla Sun Life appointed cricketers as brand ambassadors. “They are actually philosophy ambassador and not brand ambassadors. We have tried to capture their aspirations and fears,” says Ajay Kakar ,chief marketing Officer of the Aditya Birla Financial services group.

Bajaj Allianz appointed the winners of Pantaloons Femina Miss India 2009 pageant, including Ekta Chaudhary, as its ambassadors.

“Celebrity endorsement creates instant recall and it becomes easier to reach the masses,” says Bajaj Allianz life insurance head marketing Akshay Mehrotra .

TapRoot India CEO Agnello Dias sums it up, saying “celebrities have nothing to do with the products they are endorsing, except a few.

The recent engagement of celebrities in the insurance space will only help them break the clutter.” – Business Standard

]]> 4315 2009-09-30 04:29:34 2009-09-30 11:29:34 open open insurers-bank-on-celebrity-appeal publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6351#comments wfw:commentRSS http://zikkir.com/business/6351/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6351 syndication_item_hash 4b4bcb00c8b0572c0e9909b2128e3802 Nokia: Devices to services http://www.ethiopianreview.com/business/4314 Wed, 30 Sep 2009 11:31:02 +0000 http://zikkir.com/business/?p=6353 The world’s largest handset brand is going all out to prove that there is more to a call than just hardware.

If you are planning to go to a ‘Nokia Priority’ store today to buy a mobile handset, you could be in for a pleasant surprise. There’s a lot more to these stores now than mere hardware.

More than a third of the 700-odd retail shops across the country are now Wi-Fi enabled, allowing you to surf the internet. These stores, which earlier used to have only one counter for sales of handsets and accessories, now have four zones — one each for music, gaming, email and navigation applications. The salespersons at each counter will not only help you choose a suitable handset, but will also assist you in choosing songs from the Nokia music store, check email services, choose from different games, and even download songs onto your handset, if you wish.

These Nokia ‘experience’ outlets are, in fact, sending out a clear signal — that the $75 billion handset maker is now positioning itself as a services player too. There are many reasons for this key shift in the strategy of the world’s largest handset maker with a 40 per cent market share globally (and over 60 per cent in India).

Listen to Nokia India’s Marketing Director Vineet Taneja. “We have a very large installed base, which is a must for launching a successful services model. We started out by connecting people with calls and SMSs. Now the internet, mobile and personal computer (desktop and notebook) talk to each other as devices converge. This prompted us to redefine our vision to keep in touch with consumers. Since the services and devices are integrated, we want our consumers to buy a Nokia solution,” Taneja says.

Analysts, of course, have another take. The move into services, they say, comes as Nokia is struggling with falling handset prices and increased competition in the high-end mobile phone market — particularly from the likes of Apple’s iPhone and Research In Motion (RIM’s) Blackberry.

But Taneja insists “this is an evolution and not a change of vision”. He adds that the journey towards services began around two-three years back with the launch of the N- and E-series phones where consumers were allowed to “do new things with our devices”.

For instance, in December 2007, Nokia started offering its global positioning system (GPS) and navigation services with the Nokia 6110 Navigator bundled with pre-installed maps of eight cities.

In April this year, Nokia announced the availability of its gaming service, ‘N-Gage’ in India with additional games and an expanded online offering. Around this time, Nokia also unveiled the new addition to its E-series range, Nokia E75, with the Nokia Messaging Service which mobilises email solutions on its devices. Nokia has a subscription-driven model where the payment is made through operators. “We will soon (by December) introduce a per day and per month billing mechanism too,” says Taneja.

This June, after a successful pilot in Maharashtra, Nokia announced the commercial launch of Nokia Life Tools service. It has a range of three primary services -– agriculture, education and entertainment.

The Nokia Life Tools Agriculture service, for instance, is available for Rs 1-2 a day. The Nokia Life Tools Education service, available throughout India, offers three components: Learn English, with basic, intermediate and advanced levels. The Nokia Life Tools Entertainment service includes astrology, news, jokes, cricket and ringtones, offered at existing market prices.

All these services are delivered by SMS to ensure that the service works wherever a mobile phone works, without the hassles of additional settings or the need for general packet radio service (GPRS) coverage. “Having received a good response, we will launch full-fledged Nokia Life Tools services from October,” says Taneja.

Towards the end of last month, Nokia announced the launch of its Music Store service in India. It offers music lovers access to over three million soundtracks across all genres. Nokia has tied up with leading international music labels such as Universal Music Group, Sony Music, EMI and Warner and major independent Indian record labels including Tseries, Yashraj Music, Saregama, BIG Music and Venus. The company has partnered with India’s leading music body, Indian Music Industry (IMI), a consortium of over 150 music companies.

Given the low internet and credit-card penetration in the country, Nokia decided to introduce vouchers in their ‘priority’ outlets for music. Besides this, explains Taneja, Nokia also bundles music with handsets — branded as ‘Comes with Music’ one-year offering.

Nokia also has free downloads with nearly 320,000 applications downloaded globally each month, and India is the most active market for downloads from its ‘Try for Free’ service, says Taneja.

Most of Nokia’s services, except for the Nokia music store, are currently branded under the ‘OVI’ (sub-brand) umbrella. “All services will gradually be brought under the OVI fold,” says Taneja. OVI, in Finnish, means ‘Door’. “It’s the door to your digital world,” he adds.

Taneja adds that the “advertising-based” business model for Nokia will take some time to pick up since it needs more active users (those who have used at least one Nokia service in the last six months).

Globally, Nokia is launching a financial management and payment service — Nokia Money — which will be rolled out in early 2010. It is promoting these services through its recent acquisition, Obopay, which has a presence in India and the US.

And having sold over 20 million 3G-enabled handsets in India, Taneja is optimistic that “once 3G services are rolled out, data connectivity will only get faster and our services only better”. – Business Standard

]]> 4314 2009-09-30 04:31:02 2009-09-30 11:31:02 open open nokia-devices-to-services publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6353#comments wfw:commentRSS http://zikkir.com/business/6353/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6353 syndication_item_hash 36d4c8dc03ce5d5b1d735347e062d11a German unemployment posts surprise fall for second month http://www.ethiopianreview.com/business/4313 Wed, 30 Sep 2009 11:34:36 +0000 http://zikkir.com/business/?p=6355 1
Job seekers had an easier time finding work in September

Unemployment fell for a second month in a row, surprising economists who expected the rate to rise as Germany recovers from its worst recession in over 60 years. But officials warn joblessness could rise again soon.

Official figures from the Federal Labor Office show Germany’s unemployment rate was 8 percent in September, down from 8.3 percent one month earlier. The improvement has been attributed largely to a traditional autumn upturn in the labor market rather than fundamental improvements in the economy.

The numbers out of work in Europe’s biggest economy dropped by 125,000 to 3.346 million this month, the Nuremberg-based labor office said Wednesday. Analysts had predicted a rise of 20,000.

However, labor office head Frank-Juergen Weise warned that the latest data did not represent a turning point in the nation’s job market.

“The effects of the economic crisis on the labor market remains noticeable,” he said.

Future policy

The release of the latest unemployment data comes as Chancellor Angela Merkel’s conservative Christian Democratic Union (CDU) prepares for talks with the pro-business Free Democratic Party (FDP) to forge a new coalition government after Sunday’s national election.

w
Laws on hiring and firing in Germany may stress Merkel’s partnership with Westerwelle

Goldman Sachs economist Dirk Schumacher told AFP news agency he believed “dismissal protection” policy would be a sore point in the upcoming policy talks between the new CDU and FDP coalition partners.

He said: “The FDP election platform demands meaningful changes to the current regime while Chancellor Merkel apparently made a promise to unions not to touch the current framework.”

Blue skies?

The drop in seasonally adjusted unemployment in September followed a surprise 1,000-fall in in August.

Government subsidies which allow firms to cut working hours has thus far prevented a flood of jobless claims, though experts have warned the number of people out of work could swell in coming months.

Germany has nonetheless rebounded from its worst recession in more than six decades more quickly than expected , edging back to growth in the second quarter of this year with expansion of 0.3 percent.

That could help companies avoid outright redundancies, although a report in the daily newspaper Die Welt said Wednesday that Germany’s biggest bank, Deutsche Bank, wants to eliminate or farm out 1,300 German jobs. – DE-WORLD.DE

]]> 4313 2009-09-30 04:34:36 2009-09-30 11:34:36 open open german-unemployment-posts-surprise-fall-for-second-month publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6355#comments wfw:commentRSS http://zikkir.com/business/6355/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6355 syndication_item_hash 7382c0de3fb849869df9a7dde5c81435 Jet to sell land in Mumbai to raise Rs 1,000 cr http://www.ethiopianreview.com/business/4312 Wed, 30 Sep 2009 11:38:34 +0000 http://zikkir.com/business/?p=6359 Jet Airways expects to raise over Rs 1,000 crore by selling 2.5 acres of premium land it owns in the Bandra Kurla area in Mumbai. The move will partly help the company to raise about $400 million (roughly Rs 2,000 crore) to cut its debt burden of Rs 15,885 crore.

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“We have pieces of land in Bandra Kurla and the ground-breaking ceremony for one of them has been done recently. We can raise over Rs 1,000 crore from this property alone,” said an official. The land could be handed over to a developer for a combination of cash and office space.

The airline, which made a Rs 225-crore loss in the quarter ending June 2009, also plans to cut debt by leasing aircraft and raising equity through a qualified institutional placement (QIP) of about $200 million in the first tranche and depending on market conditions. A two-year-old plan to raise Rs 4,000 crore through a rights issue has been on the backburner, owing to poor market conditions.

In a detailed application to the Foreign Investment Promotion Board for the QIP issue, the airline, which recently suffered a pilots’ strike over pay and allowances, detailed various measures it has taken to tackle the downturn. For instance, the company said it has suspended operations on loss-making international routes like Amritsar-London and Mumbai-Shanghai-San Francisco. It has also replaced high-capacity Boeing 777-300ERs with the lower capacity Airbus 330-200 on long-haul flights to New York and Newark. – Business Standard

]]> 4312 2009-09-30 04:38:34 2009-09-30 11:38:34 open open jet-to-sell-land-in-mumbai-to-raise-rs-1000-cr publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6359#comments wfw:commentRSS http://zikkir.com/business/6359/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6359 syndication_item_hash be233e28147c2d6a8ab8ab530b7e8b05 It’s raining orders for India Inc http://www.ethiopianreview.com/business/4311 Wed, 30 Sep 2009 11:39:49 +0000 http://zikkir.com/business/?p=6361 The trickle has turned into a deluge. India Inc’s order book has more than doubled to an all-time high of Rs 73,320 crore in the second quarter of the current financial year, compared to the first quarter. On a year-on-year basis, the increase is 21 per cent.

An analysis of order book announcements by 63 companies shows that capital goods, engineering and infrastructure have led the way, cornering 86 per cent (Rs 63,439 crore) of the total orders. The remaining Rs 9,881 crore went to gems & jewellery, pharmaceuticals and telecom. Larsen & Toubro (L&T) topped the list with new orders worth Rs 14,253 crore.

The order backlog is equally impressive and suggests strong revenue streams for the next few years. Electrical equipment giant Bharat Heavy Electricals Ltd has an order backlog of over Rs 117,000 crore, which could see the company through for the next four years. Engineering major L&T has a total order book of Rs 70,000 crore, which is almost 1.75 times its annual turnover.

It’s not the big boys alone who are comfortably placed. For example, BGR Energy, which has won contracts worth Rs 1,633 crore each for two power projects, has an overall order position of Rs 12,500 crore, providing a revenue stream for more than three years.

The bulk of orders has come from public sector undertakings and central and state governments. Foreign companies accounted for a quarter and the private sector for the rest.

India Inc’s bosses are predictably upbeat. Pervez Umrigar, managing director of Gammon Infrastructure Projects, said the infrastructure sector has a huge long-term potential.

“The financial position was grim last year, but now it is recovering. I hope complete recovery will take place by this year-end.”

Bankers said the order book would continue to be impressive. The banking sector’s exposure to the infrastructure sector went up 35 per cent year-on-year and is expected to improve further.

ICICI Bank’s Managing Director & CEO Chanda Kochhar said she expected the next level of credit growth to come from project finance apart from home and auto loans. For example, the government’s $20 billion roads programme is well on track and a lot of orders are expected to flow into the books of Indian companies. – Business Standard

]]> 4311 2009-09-30 04:39:49 2009-09-30 11:39:49 open open it%e2%80%99s-raining-orders-for-india-inc publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6361#comments wfw:commentRSS http://zikkir.com/business/6361/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6361 syndication_item_hash 524b8c040dae28bba8c9faccb2362b03 Resume work or face action: Patel to AI pilots http://www.ethiopianreview.com/business/4310 Wed, 30 Sep 2009 11:41:37 +0000 http://zikkir.com/business/?p=6363 ‘Mr Jadhav is a confused man and that is the problem,’ says pilots’ representative.

In a veiled threat to the executive pilots of Air India, Civil Aviation Minister Praful Patel today urged them to report for duty by midnight or face whatever action the management thought fit to take against them.

The pilots, however, said they will not rejoin duty till their demands — to roll back the cuts in productivity pay and release their dues — are met.

The airline has, meanwhile, opened two facilitation counters at the Delhi airport and has asked travellers to check the status of their flight beforehand.

As many as 188 of Air India’s 319 executive pilots, who account for about a quarter of the state-owned airline’s total pilot strength, have stayed away from duty since Friday midnight, protesting against the management’s decision to slash productivity pay as a cost-cutting exercise. The airline is facing losses of Rs 7,200 crore this year as a result of the fall in air travel.

Patel’s statement followed his meeting with Manmohan Singh and a separate meeting that Air India Chairman Arvind Jadhav and Aviation Secretary M M Nambiar held with the prime minister.

The airline was forced to cancel over 150 flights (out of over 400 flights) today, impacting over 8,000 passengers across the country.

The crisis has grown acute, with 50 executive engineers joining their pilot colleagues. As a result, 11 international long-haul flights were also cancelled today.

Air India has a domestic market share of 16.6 per cent and a 36 per cent share of international flights from India.

Speaking to reporters, Patel also said the proposed cuts have not been implemented and productivity linked incentives (PLI) for July were paid in August, so only the August payments are pending.

On Sunday the Air India management issued an order saying that the PLI cut for executive pilots will only be finalised after discussions with a committee of pilots.

V K Bhalla, who is leading the exeuctive pilots’ protest, declined to say whether the pilots would heed Patel’s warning but accused Jhadav of misguiding the minister. “The minister said PLI for July has been paid. We can display our bank records to show that we have not received any PLI at all. Mr Jadhav is a confused man and that is the problem” he added.

Unlike the chaos during the Jet Airways pilots’ sick-out, fares did not rise sharply, especially after the government met private airlines today and extracted an assurance to this effect.

But Bhawana Aggarwal, co-founder of on-line portal Yatra, warned, “Fares of private airlines haven’t risen yet. But if the protest continues, fares may be impacted substantially with demand exceeding supply.”

On his part Jadhav categorically ruled out plans for a lock-out but said the airline was losing Rs 30 crore of revenue a day as a result of the pilots’ protest.

The option of a lock-out was, however, discussed in government, said sources close to the development. Those supporting the move said it would offer the airline’s management an opportunity to re-negotiate wage and creditor agreements.

Those who opposed the move were conscious of the political fall-out given that Assembly elections are due soon in Maharashtra, Patel’s home state. – Business Standard

]]> 4310 2009-09-30 04:41:37 2009-09-30 11:41:37 open open resume-work-or-face-action-patel-to-ai-pilots publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6363#comments wfw:commentRSS http://zikkir.com/business/6363/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6363 syndication_item_hash c2c0540c6c71b6b60eda7e80f28b7d8f Retailers back in expansion mode as consumers return http://www.ethiopianreview.com/business/4309 Wed, 30 Sep 2009 11:43:07 +0000 http://zikkir.com/business/?p=6365 The retail king is back to what he does best: Expand. Future Group Chairman Kishore Biyani is planning to add two Big Bazaar stores every month and open 15 hypermarkets over the next six months.

‘‘The stress is no longer there,’’ Biyani says. This, coming from someone whose flagship company, Pantaloon Retail, reported a 54 per cent drop in net profits for the full year ended June 2009.

And, he’s not alone. B S Nagesh, vice-chairman, Shoppers Stop, says this is the best stage for retail in India because companies that have a good balance-sheet, low debt and a strong franchise will do well. This means the downturn has separated the men from the boys.

Nagesh says retailers are seeing genuine customers returning to the stores. So, conversions have gone up — a very positive trend for retail. As a result, retailers who were busy shutting stores and correcting their cost structures for much of last year are planning to add new stores as sales pick up.

This doesn’t mean everyone is doing well. Although weaker players are falling by the wayside — Piramyd was sold to Indiabulls; Subhiksha ran out of cash; Vishal Retail and Kuotons, which grew too fast, are in distress — it is the stronger players that are quietly consolidating their position after bringing down costs. This includes the Future Group, Aditya Birla Retail, Reliance Retail, Trent and Spencer’s Retail.

The focus this time, say analysts, is on bigger formats where it is easier to make money than on smaller formats where there is strong competition from traditional mom-and-pop shops.

Aditya Birla Retail, which has 642 supermarkets and five hypermarkets, plans to take the tally to 700 stores and seven hyper markets by March-end. Industry experts estimate that both of them are clocking sales of around Rs 200 crore a month, which is significant.

It’s not just about big players like Reliance and Birla. Lifestyle, owned by Dubai-based Landmark Group, which clocked a turnover of Rs 800 crore in 2008-09 with 15 stores, now plans to invest Rs 450 crore to set up 44 new stores in tier-II cities of the country.

Bharti Retail, which has set up 28 stores, plans to add 40 more by December 2009. Metro, which has set up five stores in six years, is planning to set up six to seven stores in Punjab; Carrefour’s is likely to open its first wholesale store in the next 12 months.

“Some of the biggest names — Marks & Spencer, Carrefour or Metro, etc — are expanding in partnership or on their own. Just because one or two retailers have closed doesn’t mean the sector is doing badly,’’ says Arvind Singhal, chairman, Technopak Advisors. In fact, many of the specialist retailers like Tanishq, Geetanjali, Mobile Store, Guardian Pharmacy, Reebok and Nike have also done well and are expanding.

Damodar Mall, group customer director, Future Group, says optimism is back. ‘‘In the last year, unchecked optimism went out of fashion. Now, companies have done the maths, cut costs, and had the courage to close stores that were unviable,’’ he said.

Mall says retail chains have gone through “sanity checks”. Those models that are viable and have traction with the customer will grow. – Business Standard

]]> 4309 2009-09-30 04:43:07 2009-09-30 11:43:07 open open retailers-back-in-expansion-mode-as-consumers-return publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6365#comments wfw:commentRSS http://zikkir.com/business/6365/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6365 syndication_item_hash 6fa6b6d07974133d5f9c4377031449ed BSE should set its house in order before listing, says Sebi http://www.ethiopianreview.com/business/4308 Wed, 30 Sep 2009 11:44:09 +0000 http://zikkir.com/business/?p=6367 The Securities and Exchange Board of India (Sebi) has asked the 134-year-old Bombay Stock Exchange (BSE) to set its house in order before planning a listing.

BSE had been planning to list on the exchange for a while and had approached Sebi for permission to list without an initial public offer. Sebi also has to formalise norms for regulating self-listed companies. Some BSE members were keen on the listing of the exchange so that they could sell their shares.

Sources close to the discussions said that the market regulator has communicated its position to the stock exchange informally and BSE has already initiated steps to improve its technology platform, a key element of the makeover plan that Sebi found wanting.

To this end, BSE had acquired Marketplace Technology (MT), set up by Ashish Chauhan, to offer back-office solutions for brokers. The deal was estimated at Rs 43 crore.

Chauhan, who joined BSE, as Deputy CEO last week, was part of the original team that set up the National Stock Exchange (NSE). Before joining BSE, he was the CEO of Mumbai Indians, the team that plays in the Indian Premier League cricket tournament.

Over the years, BSE had constantly lost out to NSE on the technology front and new players such as Financial Technologies are trying to ride the technology path while setting up exchanges such as Multi-Commodity Exchange (MCX) and MCX Stock Exchange. The sources said this was the first big move by BSE in dealing with the handicap.

Although BSE has more companies listed on it, the exchange has lost the top slot in terms of turnover (see table). BSE will also be re-launching its derivatives trading and a new marketing campaign is expected to help it popularise the product.

The move comes at a time when others such as MCX-SX are trying to enter the space.

On its part, BSE has appointed James E Shapiro as the head of market development recently and has also acquired 15 per cent in United Stock Exchange of India (USE), one of the upcoming exchanges. – Business Standard

]]> 4308 2009-09-30 04:44:09 2009-09-30 11:44:09 open open bse-should-set-its-house-in-order-before-listing-says-sebi publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6367#comments wfw:commentRSS http://zikkir.com/business/6367/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6367 syndication_item_hash 7d8d60dd69a526ef00e8225278fe1c89 MCA to scrutinise accounts of registered firms http://www.ethiopianreview.com/business/4307 Wed, 30 Sep 2009 11:46:32 +0000 http://zikkir.com/business/?p=6369 To outsource work; priority on actively-traded, listed companies.

In a bid to avoid accounting frauds of the type that hit Satyam Computers, now called Mahindra Satyam, in January this year, the Ministry of Corporate Affairs (MCA) has decided to scrutinise the account books of all registered companies — listed as well as unlisted — in the country.

The mammoth exercise will be outsourced to chartered accountants, companies and cost and work accountants.

A pilot project will shortly be launched — circulars have been sent to all offices of the Registrar of Companies — and expanded on the basis of the results.

“The priority will be to see that we scrutinise the balance sheets of all listed companies. Though there are around 5,000 listed firms, the actively traded ones will be less than 2,000. So, those companies are going to be the first,” a senior ministry official said.

The official clarified, however, that, “This does not mean unlisted companies will not come under scrutiny if irregularities are found, or complaints are registered against them.”

He added that the eventual goal was to have the balance sheets of all registered companies audited. “It will be an ongoing process,” he said. India has about 900,000 registered companies.

Currently, over 200 officials who are associated with the 20 field offices of the Registrar of Companies conduct a random scrutiny of registered companies.

The ministry officials did not specify the number of professionals that will be empanelled, saying individual field offices have been given the powers to outsource the jobs.

The size of the outsourcing will also depend on the number of fresh annual reports in each regional centre. “Registrations are not evenly spread across the country. Offices in Gujarat, Maharashtra, Kolkata, Delhi and so on are expected to handle heavy loads,” officials said.

Although the exercise will be outsourced, it will be monitored by the government. “The hired professionals will be made accountable for the observations they make,” the ministry official said.

Welcoming the move, Institute of Chartered Accountants of India (ICAI) has asked its members to empanel themselves. Institutions like Institute of Company Secretaries of India and Institute of Cost and Works Accountants of India are also preparing a list of professionals who are willing to be part of the exercise.

The professionals will also help the officials draft or scrutinise official responses to possible irregularities in the account books. Payments will be linked to the size of the company and the complexities of the accounts one handles. – Business Standard

]]> 4307 2009-09-30 04:46:32 2009-09-30 11:46:32 open open mca-to-scrutinise-accounts-of-registered-firms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6369#comments wfw:commentRSS http://zikkir.com/business/6369/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6369 syndication_item_hash 5a1cea43c92d8aa9451893d91dab900d AI mgmt backs down from lockout http://www.ethiopianreview.com/business/4306 Wed, 30 Sep 2009 11:47:46 +0000 http://zikkir.com/business/?p=6371 Says it will cut flights only on routes on which it lacks resources.

With more and more pilots reporting sick, Air India has decided to suspend flights on routes on which it lacks resources.

“We are suspending operations only on routes on which we do not have resources. We have formed a committee and that will submit its report in 10 days,” said a senior airline official.

Earlier in the evening, sources in the airline had said the airline was planning a lockout and the national carrier’s site also stopped providing tickets for any route.

Sources in the know said the airline had planned to declare a lockout from midnight but changed the decision after the prime minister’s office intervened.

Earlier during the day, Air India Chairman and Managing Director Arvind Jadhav held two meetings with the agitating executive pilots, which ended inconclusively, with the management declining to agree to their demands to reverse a decision to cut productivity-linked incentives (PLI).

The pilots’ protest, however, appears to have strengthened, with more and more pilots joining the strike.

“The erstwhile Air India pilots, who had so far been operating the flights as per normal schedule began reporting sick from late evening, affecting operation of flights to west-bound destinations later tonight,” said a release from Air India.

The third day of the agitation saw the cancellation of over 20 flights out of 400 flights.

The agitating executive pilots, however, say they will talk to the management only if their allowances due for the last three months are paid and the “talibani” order of an up to 50 per cent reduction in PLI and flying allowances is withdrawn.

The airline says Air India in its merged form has only 319 executive pilots, of which 157 are from domestic carrier Indian Airlines.

Last week, Air India announced a cut in PLI and flying allowances ranging from 25 to 50 per cent for over 7,000 of its 31,000 employees. The executive pilots, however, alleged that their salaries have been cut 70 per cent — 50 per cent announced and the remaining 20 per cent hidden.

On Sunday, the management said it would form a seven-member committee comprising the executive director (finance), executive director (industrial relations), general manager (operations) and representatives of the executive pilots to examine all concerns on the PLI cut. The airline also put on hold the PLI cuts for pilots till the committee’s report is out. – Business Standard

]]> 4306 2009-09-30 04:47:46 2009-09-30 11:47:46 open open ai-mgmt-backs-down-from-lockout publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6371#comments wfw:commentRSS http://zikkir.com/business/6371/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6371 syndication_item_hash 71ec4afe538c26e462027e38abf8472f Govt mulls leasing sick units under PPP http://www.ethiopianreview.com/business/4305 Wed, 30 Sep 2009 11:49:02 +0000 http://zikkir.com/business/?p=6373 Eyes 90-year, revenue-sharing contract for eight fertiliser units.

The government may lease six sick units on a public private partnership (PPP) basis instead of disposing of these units through an outright sale. The department of fertiliser plans to invite bids for the revival of these plants in November and is seeking Cabinet clearance to start the process.

The department had earlier also examined the option of a direct equity sale but opted for a PPP model because it offered revenue sharing opportunities, fertiliser secretary Atul Chaturvedi said.

Chaturvedi explained that whereas the outright sale of equity will mean the government will have to wait for the plants to make profits to get a share of revenue, the PPP mode will help it do so in the first year.

In April 2007, the Cabinet decided to revive eight plants owned by the Fertiliser Corporation of India and Hindustan Fertiliser Corporation. These plants include Barauni, Talcher, Ramagundam, Durgapur, Haldia, Gorakhpur, Korba and Sindri. Each of these has the capacity to produce about 1.15 million tonne of urea a year and their revival is estimated to require investment of Rs 4,500 crore each.

The department will initially invite bids for six plants. Chaturvedi said there was a land dispute with the Kolkata Port Trust over the Haldia unit, so it will be taken up for bidding later and the revival of the Talcher unit was handed over to Rashtriya Chemicals and Fertiliser.

The PPP mode will involve an upfront payment by private bidders, along with a revenue share to be paid to the government over the lease. The concession period has not yet been finalised but the department is looking at the possibility of 90 years.

Besides, land will also be leased out to the private companies for commercial use, said Chaturvedi.

The plan to long-lease sick units is the outcome of discussions by an empowered panel of secretaries that the Cabinet approved in October 2008. Chaired by the fertiliser secretary, its objective was to suggest financial models for the revival of eight units.

An earlier suggestion by the Board of Reconstruction of Public Sector Enterprises to revive these units through disinvestment proceeds from other public sector units was rejected by the ministry of finance. – Business Standard

]]> 4305 2009-09-30 04:49:02 2009-09-30 11:49:02 open open govt-mulls-leasing-sick-units-under-ppp publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6373#comments wfw:commentRSS http://zikkir.com/business/6373/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6373 syndication_item_hash e27356016f545125a6384dd0151adc3f One day internationals: Caught and bowled T20 http://www.ethiopianreview.com/business/4304 Wed, 30 Sep 2009 11:50:16 +0000 http://zikkir.com/business/?p=6375 Advertisers seek safeguards as low viewership of Indo-Pak tie shows the game’s showpiece is losing sheen.

Time was when a one day international (ODI) cricket match between India and Pakistan on a Saturday evening during the festival season would be the pride and joy of the broadcaster and mean a day of losses for other channels. That was before the 20-overs-a-side game, or T20, took guard and began to hit ODIs, 50 overs a side, out of the ground.

As India capitulated to Pakistan in the ICC Champions Trophy in South Africa on Saturday, just about enough television viewers tuned in to give the match an average rating of 2.8 on STAR Cricket, according to overnight television ratings agency aMap. That is a sharp fall from the 4-4.5 garnered by any ODI involving India in the recent past.

Sports broadcaster ESPN STAR Sports, the broadcaster for the ICC Champions Trophy, is targeting Rs 200-220 crore in advertising revenue from this tournament.

The future of ODIs look to be under a cloud if you compare the ratings with T20’s. Even a non-India match like the final of the T20 World Cup between Pakistan and Sri Lanka in May generated an average rating of 3.7. But it was the final of a tournament, one might argue. But then the group match between India and West Indies got 5.2, making it the most watched match of the tournament.

Even when one looks beyond international events and on to the Indian Premier League, ODIs still seem to be losing out. The 59 matches of IPL-II during April-May garnered an average rating of more than 4 on SET Max, according to aMap data.

The four Champions Trophy matches before the India-Pakistan tie generated average ratings that were 0.6-0.8 lower than those of any major cricket tournament in the recent past, including IPL-II and the T20 World Cup.

Expectedly, advertisers are all aflutter. The 40-50 of them that together put more than Rs 1,000 crore every year in buying time on cricket broadcasts on private sports channels, are looking at putting more in Twenty20. “While IPL-II generated over Rs 400 crore in ad revenue for SET Max, the forthcoming Airtel T20 Champions League may generate over Rs 250 crore for ESPN, much more than what it expects from the ongoing Champions Trophy,” says an IPL executive.

Sensing a lower rating for the Champions Trophy, some advertisers on STAR Cricket have already inserted safeguards in their contracts with the sports channel. “A lower rating of ODI matches in the ICC Champions Trophy is alarming for advertisers. However, most of the big spenders on cricket have done their deals on the basis of cost-per-rating points. If the ratings are lower, the advertisers pay less,” says a senior media planner who did not wish to be identified.

There is, however some hope for ODIs if you look at public broadcaster Doordarshan, which gets to show so-called events of national importance — for some reason, these include cricket matches — regardless of which channel holds the rights. As India lost to Pakistan on Saturday night, Doordarshan emerged the winner with an average viewership rating of 3.7, says aMap data. – Business Standard

]]> 4304 2009-09-30 04:50:16 2009-09-30 11:50:16 open open one-day-internationals-caught-and-bowled-t20 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6375#comments wfw:commentRSS http://zikkir.com/business/6375/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6375 syndication_item_hash 2616c34276dd0ca88eb5c63767cea2c0 Air India climbs down to set up panel on pay cut http://www.ethiopianreview.com/business/4303 Wed, 30 Sep 2009 11:51:45 +0000 http://zikkir.com/business/?p=6377 The National Aviation Company Ltd, or Nacil, which runs state-owned Air India, today agreed to form a committee to look into the productivity-linked incentive (PLI), or flying allowance, paid to executive pilots. The executive pilots will get full salary until the committee comes out with its report.

This is a softening of stand by the Nacil management, which had on Wednesday announced a cut in PLI ranging from 25 per cent to 50 per cent. This was a trigger for pilots to go on a not-so-successful strike.

Some executive pilots have not reported for work since Friday night, disrupting 34 out of 400 flights on Saturday.

Today’s announcement came after a three-hour meeting between the management and 20 executive pilots in Mumbai.

However, V K Bhalla, the representative of the agitating executive pilots, said the pilots in Mumbai were never a part of the agitation, so they could not negotiate. “Pilots in Delhi, Kolkata and Chennai will continue their agitation and will report sick,” he said.

The committee will consist of executive director (finance), executive director (industrial relations), general manager (operations) and representatives of the agitating executive pilots.

“The airline will set up a committee to look into all concerns on the PLI cut raised by the agitating pilots. The committee will discuss all the modalities,” said Jetendra Bhargava, executive director, corporate communication, Air India.

The pilots said they would try to bring the operations back to normal.

“The committee will look into the PLI modalities and we have been assured that till it comes out with a decision our salary structure will remain the same as it was earlier,” said an executive pilot who attended the meeting.

The airline said it had cancelled flights on sectors with low passenger load and with alternative flights, either by itself or by other airlines. – Business Standard

]]> 4303 2009-09-30 04:51:45 2009-09-30 11:51:45 open open air-india-climbs-down-to-set-up-panel-on-pay-cut publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6377#comments wfw:commentRSS http://zikkir.com/business/6377/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6377 syndication_item_hash 7fdd6f5e7696b2a2a288c3a553566899 US puts Lockheed off Tejas flight path http://www.ethiopianreview.com/business/4302 Wed, 30 Sep 2009 11:53:02 +0000 http://zikkir.com/business/?p=6379 Déjà vu for the US giant, as queries land at the eleventh hour.

The US government is, for the second time, squeezing American aerospace giant Lockheed Martin out of an important contract related to India’s Tejas Light Combat Aircraft (LCA).

Business Standard learns that Lockheed Martin, selected in June as a consultant for developing the Naval version of the Tejas, was given 90 days to obtain the clearances it needed from the US government. But now, with time running out, Washington has sent Lockheed Martin a list of questions about what assistance the company will provide.

Senior officials from Bangalore-based Aeronautical Development Agency (ADA), which manages the Tejas programme, say they will not delay the naval version any longer. ADA has recommended to the Ministry of Defence that another consultant be chosen. It has put forward the names of France’s Dassault Aviation, and European consortium EADS.

For Lockheed Martin, this is déjà vu. In 1993, it was selected to partner ADA in developing the Tejas’ high-tech flight control system (FCS). But after India’s nuclear tests in 1998, Washington ordered the company to terminate the partnership. India eventually went it alone, developing the world class FCS that is on the Tejas today.

Lockheed Martin is still fighting to salvage the situation. The company told Business Standard, “We are continuing our dialogue with the Aeronautical Development Agency and the US Department of Defense and are hopeful we will be able provide the consultancy desired by ADA on the Naval LCA.”

But the decision now lies in the hands of V K Saraswat, scientific advisor to the defence minister.

Lockheed Martin’s current situation replicates that of Boeing, which was front-runner for the air force Tejas consultancy. But earlier this year, after the US government failed to grant Boeing a clearance (called Technical Assistance Agreement) in time, the defence ministry awarded EADS the contract. The European consortium obtained the sanctions in time and is now working with ADA.

Foreign consultancy has been sought by ADA to introduce the Tejas into service without further delay. The air force Tejas, a single-seat, single-engine fighter, is at an advanced stage of testing. The naval Tejas, being developed around the twin-seater air force trainer, will take to the skies by mid-2010. But it will fly off an aircraft only in 2014, after getting a new, more powerful, engine. That is about when the Indigenous Aircraft Carrier, being built in Kochi, will join the Indian Navy.

The immediate challenges before the naval Tejas — which the consultant will help to resolve — include strengthening the undercarriage to absorb the high impact of landing on aircraft carrier decks, fitting an arrestor hook at the tail of the aircraft to bring it to a quick halt after landing, and adding a flap on the front edge of the wings to slow the landing speed by almost 150 kmph.

In addition, the naval Tejas needs a fuel dump system, in case of an emergency just after take-off. The take-off weight of a Tejas, with full weapons load and fuel, is 12.5 tonnes. But for landing back on an aircraft carrier, it must be less than 9.5 tonnes. In an emergency, 2 tonnes of weapons and external fuel tanks will be instantly shed, but a system must be built in for jettisoning another tonne of fuel from the fighter’s wing tanks.

None of the US Navy’s most successful carrier-borne aircraft — the F-4 Phantom, the F-14 Tomcat and the F/A-18 Hornet — was built by Lockheed Martin. Despite that, ADA believes Lockheed Martin’s experience in designing the futuristic F-35 Lightning Joint Strike Fighter qualifies it as a consultant.

“All the earlier US navy aircraft had two engines, giving them the weight and strength to support a tail hook,” explained P S Subramaniam, the director of ADA. “But Lockheed Martin has designed the F-35 Lightning, which is a single-engine fighter with a tail hook.”

Dassault’s Rafale fighter and EADS’s Eurofighter Typhoon are both twin-engine aircraft. – Business Standard

]]> 4302 2009-09-30 04:53:02 2009-09-30 11:53:02 open open us-puts-lockheed-off-tejas-flight-path publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6379#comments wfw:commentRSS http://zikkir.com/business/6379/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6379 syndication_item_hash 1f17ad84768beec9f12575a01fbe97e7 Digital ants to the rescue http://www.ethiopianreview.com/business/4301 Wed, 30 Sep 2009 11:54:17 +0000 http://zikkir.com/business/?p=6381 Swarms of digital ants may soon crawl all over the internet, scouting not for food, but computer worms and self-replicating programs designed to steal information or facilitate unauthorised use of machines. Security experts have successfully deployed a new type of network security software which mimics the habits of real-world ants.

Ants on earth, for instance, wander randomly but return to their colonies when they find food. But on the way back, they leave behind pheromone trails. If other ants find the trail, they follow it and reinforce it. The idea of the ant colony algorithm follows this pattern. The digital ants wander through computer networks. When an ant detects a threat, other ants converge on the scene, drawing the attention of human operators who step in to investigate.

“In nature, we know that ants defend themselves against threats very successfully,” Wake Forest Professor of Computer Science Errin Fulp, an expert in security and computer networks, said in a press statement, adding: “They can ramp up their defence rapidly, and then resume routine behaviour quickly after an intruder has been stopped. We were trying to achieve that same framework in a computer system.”

Digital ants are an application of Swarm Intelligence or SI. Examples of this concept abound in nature, and include ant colonies, bird flocking, animal herding, bacterial growth, and fish schooling. SI, which refers to a general set of algorithms, was made popular in works of fiction like ‘Prey’ from Michael Crichton, where a swarm of nano-robots attacks humans as experiments go wrong, and robotic sentinels in movies like The Matrix.

Using SI, these digital ants adapt to the variations of viruses that hackers routinely introduce. This is critical since security programs gobble up more resources, and antivirus scans take longer and machines run slower when anti-virus packages discover new threats and issue updates.

Glenn Fink, a research scientist at Pacific Northwest National Laboratory (PNNL) in Richland, Washington, came up with the idea of copying ant behaviour. PNNL, one of ten Department of Energy laboratories, conducts cutting-edge research in cyber security. Fink was familiar with Fulp’s expertise developing faster scans using parallel processing – dividing computer data into batches like lines of shoppers going through grocery store checkouts, where each lane is focused on certain threats.

He invited Fulp and Wake Forest graduate students Wes Featherstun and Brian Williams to join a project there this summer that tested digital ants on a network of 64 computers. SI, the approach developed by PNNL and Wake Forest, divides the process of searching for specific threats.

“Our idea is to deploy 3,000 different types of digital ants, each looking for evidence of a threat,” Fulp said. “As they move about the network, they leave digital trails modelled after the scent trails ants in nature use to guide other ants. Each time a digital ant identifies some evidence, it is programmed to leave behind a stronger scent. Stronger scent trails attract more ants, producing the swarm that marks a potential computer infection.”

Fulp says the new security approach is best suited for large networks that share many identical machines, such as those found in governments, large corporations and universities.

And computer users need not worry that a swarm of digital ants will decide to take up residence in their machine by mistake. Digital ants cannot survive without software “sentinels” located at each machine, which in turn report to network “sergeants” monitored by humans, who supervise the colony and maintain ultimate control. – Business Standard

]]> 4301 2009-09-30 04:54:17 2009-09-30 11:54:17 open open digital-ants-to-the-rescue publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6381#comments wfw:commentRSS http://zikkir.com/business/6381/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6381 syndication_item_hash 4cd412fd0e03b179c5f3419b4835c133 AI pilots fail to do a Jet http://www.ethiopianreview.com/business/4300 Wed, 30 Sep 2009 11:55:30 +0000 http://zikkir.com/business/?p=6383 The threat of Air India pilots to disrupt operations today because of a proposed salary cut failed to have any significant impact. Agitating executive pilots claimed 400 pilots remained off duty. But a spokesperson for National Aviation Company of India, which runs the airline, claimed only 20 pilots reported sick.

As a result, only 11 domestic flights were cancelled, including flights from Delhi to Lucknow and Srinagar. Air India operates around 400 flights in a day and has a market share of 16.6 per cent. “All the 58 international flights operated normally,” said the spokesperson.

The pilots of Jet Airways had recently gone on sick leave demanding reinstatement of two colleagues and had brought the operations of the airline to a standstill. But the agitation of the Air India pilots has not resulted in anything like that so far. The management of the airline will meet the pilots tomorrow to discuss the issue.

The pilots are protesting the reduction in their productivity-linked incentives (PLI) and flying allowance, which they say has brought down their salary by 70 per cent. “We also have the support of line pilots (pilots who are a part of the two unions, India Commercial Pilots’ Association and Indian Pilots’ Guild). Talks are on and line pilots will soon join us,” said RK Bhalla, leader of the agitating pilots.

However, ICPA, which is the larger of the two pilot unions of Air India, will not go on strike as salaries of its members have not been cut, said an ICPA representative.

Bhalla had claimed yesterday that he had the support of 400 executive pilots of Air India. But Air India refuted it saying the airline has only 319 executive pilots on its rolls, out of which 157 are of the erstwhile Indian Airlines. “They have cut both our variable pay by 50 per cent and 20 per cent by cutting other emoluments, which has brought our salary down by 70 per cent,” said Bhalla.

The NACIL board had on Wednesday approved a cut ranging from 25 per cent for those getting PLI of Rs 10,000 or less to 50 per cent for those receiving PLI or flying related allowances of Rs 2 lakh or more per month. – Business Standard

]]> 4300 2009-09-30 04:55:30 2009-09-30 11:55:30 open open ai-pilots-fail-to-do-a-jet publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6383#comments wfw:commentRSS http://zikkir.com/business/6383/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6383 syndication_item_hash 29e1aa674d43672a10443c00dac80f58 Emerging markets wrest bigger role in new world order http://www.ethiopianreview.com/business/4336 Wed, 30 Sep 2009 14:39:24 +0000 http://zikkir.com/business/?p=6385 India returns from G-20 meet with major gains on fuel subsidy, climate change.

Leaders of Group of 20 countries, who concluded their Summit here on Friday, have agreed to a major overhaul of the global financial architecture that they believe will help lay the foundation for strong, sustainable and balanced growth.

In their final declaration, the leaders have designated G-20 to be the premier forum for international economic co-operation. This will effectively dilute the role other such forums like G-8 have enjoyed so far and at the same time assign a greater role to the Financial Stability Board (FSB) that was set up by them early this year to co-ordinate and monitor progress in strengthening financial regulation.

They also agreed to launch a Framework for Strong, Sustainable and Balanced Growth by November. The Framework will commit G-20 countries to work with the International Monetary Fund (IMF) and World Bank to ensure that their fiscal, monetary, trade and structural policies are collectively consistent with more sustainable and balanced trajectories of growth. There is also a provision for peer review, which would envisage economic strategies of member countries to be jointly evaluated by IMF and multilateral funding bodies.

More significantly, they have agreed to shift five per cent quota share of developed countries in IMF to dynamic emerging markets and developing countries. The exercise, to be completed by January 2011, will mean an increased quota for countries like India and China at the expense of developed countries of Europe, in particular those which are at present over-represented in IMF. The modalities for the quota adjustments will be worked out at the finance ministers’ meeting in November.

This is seen as a victory for the developing world which had lobbied hard for a seven per cent shift in the IMF quota. However, after negotiations prior to the Summit, they settled for a compromise formula of five per cent additional quota. Earlier at the Summit, the G-20 countries delivered on their promise to contribute over $500 billion to IMF for its renewed and expanded new arrangement to borrow.

The World Bank too, according to the declaration, will allocate three per cent more voting power to developing and transition countries, while ensuring that over-represented countries increase their contribution to the multilateral institution and the smallest poor countries can protect their voting power.

For India, the final declaration has five major implications. One, the G-20 leaders agreed to phase out and rationalise over the medium term inefficient fossil fuel subsidies. India and other developing countries appear to have got a reprieve with an important condition in the declaration that such rationalisation of subsidies will not be at the expense of any dilution to the countries’ commitment to provide targeted support for the poorest through cash transfers and other appropriate mechanisms.

However, subsidies on fuels that are at present benefiting the affluent sections of society will come under the G-20 scrutiny and may force a review of India’s current energy pricing policy, which subsidises many petroleum products consumed not always by the poor.

Two, the declaration partially addresses the concerns of developing countries like India, which were opposed to negotiating or discussing any issues related to climate change and had argued that the forum for such negotiations was the United Nations Framework Convention on Climate Change (UNFCCC). The declaration restricts the leaders’ commitment only to doing their best to reach an agreement in Copenhagen through UNFCCC, talks about member countries’ differentiated responsibilities and makes no mention of any absolute cut in emission levels.

However, it includes several provisions that bind developing countries like India to promote green energy and increase efficiency in energy use. For instance, the idea of phasing out and rationalising subsidies on fossil fuels has been linked to the need for dealing with the threat to climate change. The G-20 leaders have also promised to stimulate investment in clean energy, renewable energy sources and energy efficiency, in addition to providing financial and technical support for such projects.

Three, the G-20 leaders agreed to India’s proposal that the time was not ripe for any withdrawal of stimulus measures. The declaration asked the G-20 finance ministers to use inputs from IMF and FSB and deliberate at their meeting in November on how they could sequence the process of withdrawing stimulus measures in different countries or regions and then work out credible exit strategies to “anchor expectations and reinforce confidence.”

Four, the declaration is conscious of the need to increase access to food, fuel and finance among the world’s poorest people. The G-20 leaders, therefore, called on the World Bank to develop a new trust fund to support the new food security initiative for low-income countries announced last year. The funds for programmes to bring clean affordable energy to the poorest will be increased. There is also a commitment to create labour markets that are more inclusive, active labour market policies and quality education and training programmes. The labour market and food security issues will have a special bearing for the India’s labour and food policies.

Five, the G-20 leaders acknowledged the Indian government’s initiative in expediting the resumption of the Doha round of trade talks and renewed their commitment to fight protectionism and to bring the Doha round to a successful conclusion in 2010.

The G-20 leaders drew satisfaction over their efforts so far in arresting the global downturn, but issued a warning against complacency. They agreed to hold their next meeting in Canada in June 2010 and in South Korea in November 2010. – Business Standard

]]> 4336 2009-09-30 07:39:24 2009-09-30 14:39:24 open open emerging-markets-wrest-bigger-role-in-new-world-order publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6385#comments wfw:commentRSS http://zikkir.com/business/6385/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6385 syndication_item_hash 2b9add83e15970f9b93e45b58d9db78f Balco mishap: Chinese staff evacuated, fearing local ire http://www.ethiopianreview.com/business/4335 Wed, 30 Sep 2009 14:40:17 +0000 http://zikkir.com/business/?p=6387 Chinese nationals are fleeing the industrial township of Korba to escape local wrath after a chimney collapse at a plant run by Bharat Aluminium Company Limited (Balco) claimed 25 lives on Wednesday.

The Chinese are employees of Shandong Electric Power Construction Corporation (Sepco) — a China-based power construction company— which won the contract to build a 1,200-Mw power plant for Vedanta-controlled Balco in Korba. The work for constructing a 275-metre tall chimney was awarded to Indian civil engineers Gannon Dunkerley.

In all, 76 Sepco officials and employees have left Korba over Wednesday and Thursday. Sources said they had not left the country, but were camping in Mumbai and Kolkata till the situation returns to normal.

About half-a-dozen Chinese nationals working for another company also fled the town, sources said.

Sources said the police escorted the Chinese nationals in different groups to Bilaspur railway station and Raipur airport. The first group comprising senior officials was evacuated under cover of darkness on Wednesday night and the last group reached Raipur late yesterday night under heavy security escort.

“The district administration did not want the Chinese officials and employees to stay because they would become the target of an angry mob and create a major law and order problem,” a senior police official told Business Standard.

Rescue work on the Balco plant has seen the body count rising steadily. Official sources said 34 bodies had been retrieved and it would take another 24 hours to clear the debris and rescue the people trapped inside.

Balco’s chief of corporate communications B K Sriwastava confirmed that the Chinese officials and employees had been shifted from Korba because the situation was tense. The move was aimed to avert any untoward incident, he explained, adding that this was a temporary arrangement and they would be back once normalcy was restored. – Business Standard

]]> 4335 2009-09-30 07:40:17 2009-09-30 14:40:17 open open balco-mishap-chinese-staff-evacuated-fearing-local-ire publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6387#comments wfw:commentRSS http://zikkir.com/business/6387/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6387 syndication_item_hash 5c4222fae908af32e31605ee9effe909 400 Air India executive pilots go on strike http://www.ethiopianreview.com/business/4334 Wed, 30 Sep 2009 14:41:24 +0000 http://zikkir.com/business/?p=6389 Protest against sharp cuts in productivity bonuses; management says contingency plan ready.

Around 400 executive pilots of Air India’s total pilot strength of 1,200 did not report for duty this evening, marking the start of an indefinite strike to protest against the airline management’s decision to cut incentive pay as a means of cutting costs.

The airline, however, said flights operations would be normal because a contingency plan is in place.

“We are protesting against the 70 per cent cut in our incentives, which is unfair,” said V K Bhalla, leader of executive pilots association of the airline.

Bhalla claims that he has the support of Indian Commercial Pilots Association (ICPA), one of the airline’s two pilot unions, the other being the Indian Pilots Guild. An ICPA representative, however, said the union was not going on strike but was extending moral support to the executive pilots.

On the management’s part, Air India Chairman and Managing Director Arvind Jadhav said he was meeting the pilots on Wednesday and Thursday next week to sort out any grievances they have against the proposed cut.

“We have a contingency plan in place if the pilots do not report for duty and we will make sure that the flights operate normally,” he told Business Standard.

The aviation ministry said it did not have any information on the strike by executive pilots. “Let them go on strike first, we will do what all needs to be done to normalise things,” said a senior ministry official.

The pilots are protesting against a decision by the Air India board on Wednesday to cut productivity-linked incentive (PLI) and flying allowance by 25 per cent for those getting PLI of Rs 10,000 or less to 50 per cent for those receiving PLI or flying-related allowances of Rs 2 lakh or more per month for all officers, including top management and executive pilots. – Business Standard

]]> 4334 2009-09-30 07:41:24 2009-09-30 14:41:24 open open 400-air-india-executive-pilots-go-on-strike publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6389#comments wfw:commentRSS http://zikkir.com/business/6389/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6389 syndication_item_hash deff6e49512197580e8855d0279259c2 FCCBs regain currency; 4 firms raise $702 mn in four days http://www.ethiopianreview.com/business/4333 Wed, 30 Sep 2009 14:42:53 +0000 http://zikkir.com/business/?p=6391 After a year’s lull, foreign currency convertible bonds (FCCBs) are regaining currency. In the past four days, four companies have announced plans to raise $702 million (around Rs 3,370 crore) through FCCBs.

If Amtek Auto’s $65 million FCCB issue on September 11 is taken into account, the amount for September would be much higher. Before Amtek Auto, the last FCCB issue took place in August 2008 when Temptation Foods raised $200 million. But the global credit crisis and the liquidity crunch spoilt the party.

CURRENT ACCOUNT
Name Date* Amt ($ mn)
Amtek Auto 11-Sep 65
Guj NRE Coke 22-Sep 60
Sujana Towers 22-Sep 12
Sesa Goa 24-Sep 500
Welspun Gujarat 25-Sep 130
*Date of announcements

FCCB is a hybrid instrument that enables a buyer to convert bonds into equity before maturity at a pre-determined price. With share prices crashing, Indian companies were forced to buy back the bonds even if some of them had to raise fresh funds or dip into reserves. In all, 17 Indian companies bought back bonds worth $472 million using the special window opened by the Reserve Bank of India in December last year.

According to CLSA estimates, around 185 companies had issued FCCBs worth $20 billion (over Rs 95,000 crore) between 2004-05 and 2007-08. Of this, around $15 billion (around 72,000 crore) was outstanding, while the balance has been converted into equity. Most of the FCCBs are due for maturity over the next three years.

There were fears that the fall in equity markets would make the FCCB-issuing companies repay the debt. But with abundant liquidity in the global financial system and share prices rising in the domestic market, Indian issuers are back in the market.

“Investors expect the Indian stock markets to move up from current levels. So, they are looking at the incentive to convert the bonds into equity as prices rise,” said an executive at Welspun Gujarat. The company placed its $130 million issue with European and Asian investors.

Over the last three months, Indian companies have raised around $5 billion (Rs 24,000 crore) through external commercial borrowings, but most of these have been credit lines from parents, export credit agencies or Indian bank branches overseas. By offering conversion into equity as a sweetener, Indian companies are now trying to get overseas investors to shed their reluctance following last year’s credit crisis.

Although investment bankers expect FCCB activity to pick up in the coming months, they warned companies to be careful. “Issuers of such bonds have to learn to manage liabilities; they need to provide for such bonds for risk management purpose and consider the outstanding bonds for calculating debt-equity ratio,” said Ravi Kapoor, managing director, capital markets for Citigroup Global Markets India.

The FCCB markets have, however, changed in terms of buyers and the coupon and premium available. Hedge funds, which were the largest subscribers earlier, have limited their participation. The largest participants are outright convert buyers who predominantly trade in FCCBs.

“Credit spreads have fallen dramatically in the last three to four months which is helping companies place FCCBs at much lower coupons,” said Vedika Bhandarkar, managing director, at J P Morgan India, the investment bank that was the sole book runner for the transaction of Welspun Gujarat.

Some FCCBs by overseas companies were placed at a coupon of 7 to 8 per cent early this year. Now the companies are able to place FCCBs at a coupon of 4 to 4.5 per cent. “The premium has also been rationalised and the days of 50 per cent premium are over,” she added. The bank was able to place the issue of Welspun Gujarat at premium of 20 per cent. – Business Standard

]]> 4333 2009-09-30 07:42:53 2009-09-30 14:42:53 open open fccbs-regain-currency-4-firms-raise-702-mn-in-four-days publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6391#comments wfw:commentRSS http://zikkir.com/business/6391/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6391 syndication_item_hash 5a18f462472e3ac2cda4cde8fc1009c2 G-20 drops joint ‘exit strategy’ for stimulus phase-out http://www.ethiopianreview.com/business/4332 Wed, 30 Sep 2009 14:44:10 +0000 http://zikkir.com/business/?p=6393 Acknowledges developing countries’ concerns over early coordinated withdrawal.

Leaders of the Group of 20 countries, who met here today, have reached a broad agreement on the need to let individual countries decide on the schedule for phasing out the fiscal stimulus measures their governments had introduced in the wake of the economic downturn that engulfed the global economy last year.

In the process, the G-20 Summit has acknowledged the concerns expressed by developing countries, including India, over an early and co-ordinated phase-out of stimulus measures. A few developed countries have been suggesting an “exit strategy” for the stimulus measures now that “green shoots of recovery” can be seen.

India’s view on this issue has been that even though signs of economy recovery are visible, the global economy still needs these stimulus measures.

At the same time, however, the draft declaration of the summit is understood to have endorsed the US recommendation for the adoption of a new framework for balanced and sustainable growth. This is being seen as a reflection of the G-20 leaders commitment to take significant and concrete steps towards controlling and reducing emission of greenhouse gases at the next meeting of the United Nations Framework Convention on Climate Change, to be held in Copenhagen in December.

Indeed, the draft declaration is believed to have favoured a general political consensus towards successful conclusion of the climate change talks at Copenhagen.

The draft declaration is also understood to have endorsed a plan of action on the reform of the financial system and an increase in the representation of developing countries in the multilateral financial institutions like the International Monetary Fund and the World Bank.

Endorsing this further, a White House statement said : “The G-20 leaders reached a historic agreement to put the G-20 at the centre of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis.”

The statement referred to US President Barack Obama’s reference to G-20 as a premier global economic forum and his call to the world leaders to reform global economic institutions to meet the needs of an interconnected world economy.

“Today, leaders endorsed the G-20 as the premier forum for their international economic cooperation. This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest,” the White House said.

The draft declaration is also understood to have called for an end to protectionism in trade, investment, services and capital flows. This is significant in light of the intensifying trade wars among major trading partners like the US and China, and the failure of the World Trade Organisation to resume the Doha round of trade talks.

On Thursday, US President Barack Obama had hosted a dinner for the heads of governments that included Prime Minister Manmohan Singh. Planning Commission Deputy Chairman, Montek Singh Ahluwalia, was India’s Sherpa at the negotiations that preceded the plenary session of the Summit today. – Business Standard

]]> 4332 2009-09-30 07:44:10 2009-09-30 14:44:10 open open g-20-drops-joint-%e2%80%98exit-strategy%e2%80%99-for-stimulus-phase-out publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6393#comments wfw:commentRSS http://zikkir.com/business/6393/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6393 syndication_item_hash 5ac7fa42a39f8cddb9e18bfe947b9b6e Unilever to buy Sara Lee soaps for $1.88 billion http://www.ethiopianreview.com/business/4331 Wed, 30 Sep 2009 14:45:15 +0000 http://zikkir.com/business/?p=6395 All-cash deal marks biggest purchase since 2000.

Unilever, the global consumer goods conglomerate, agreed to buy Sara Lee Corp’s personal-care and European detergent unit for ¤1.28 billion ($1.88 billion), in its biggest purchase in nine years.

Unilever, based in London and Rotterdam, will pay cash for the business, which makes Dove soap and had sales of more than ¤750 million for the year ending June 2009, according to a statement today. Sara Lee, which has been shedding units to focus on coffee and food, said the proceeds would help it buy back up to $1 billion in stock.

The purchase is the largest by Chief Executive Officer Paul Polman since he took the reins at Unilever at the start of the year. He focused the company on winning back cash-strapped shoppers and boosting sales volumes by cutting prices, and was rewarded as the company unexpectedly posted volume growth in western Europe in the second quarter.

“We’re not convinced that this is the greatest collection of assets, but another acquisition shows Unilever is still moving from the back foot — cost cutting, disposals — to the front foot — volume growth, acquisitions,” Credit Suisse analysts said in an e-mailed note.

The deal is Unilever’s biggest acquisition since buying SlimFast Foods Co and Ben & Jerry’s Homemade Inc for a combined $2.6 billion in April 2000. Unilever’s brands besides food include Vaseline and Axe deodorants. “This transaction builds on our portfolio in Western Europe and also in Asia,” Polman said in the statement. “The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever’s existing business.”

Unilever’s offer price values Sara Lee’s body-care operations, which also include Zwitsal baby shampoo and Zendium toothpaste, at 1.7 times annual revenue. In 2006, L’Oreal SA bought Body Shop International Plc for 1.5 times its sales.

The transaction needs regulatory approval and the companies will consult with European employee works councils, Unilever said today.

To entice cash-strapped European consumers, Polman has also increased ad spending, boosted promotions and accelerated new product introductions since he took over as CEO. – Business Standard

]]> 4331 2009-09-30 07:45:15 2009-09-30 14:45:15 open open unilever-to-buy-sara-lee-soaps-for-1-88-billion publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6395#comments wfw:commentRSS http://zikkir.com/business/6395/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6395 syndication_item_hash bab6251331886e0d22121ceef3cf3f70 Surviving, just about, in the commune gone sour http://www.ethiopianreview.com/business/4330 Wed, 30 Sep 2009 14:46:21 +0000 http://zikkir.com/business/?p=6397 The sorry tale of how the Operating Managing Committees (OMC), the state-supported worker committees who were to manage tea estates in West Bengal after their exhausted owners gave up and instead ran these into the ground, while pocketing the money, has been reported in some detail. But, what of the body of workers themselves? How do they get on under this regime?

Just about, in these closed tea gardens, it would seem. They fight all odds to live. They have a roof over their heads — their ramshackle quarters — but no electricity or drinking water is available for them. At the Kathalguri Estate with which we began, after much agitation the district administration did arrange for 11 hand pumps in the garden, but only two of these are working now. “Every day we have to walk two km to fetch water,” said members of a self-help group of the women in the garden.

In the plucking season, the OMC provides the employees with three days of work a week at the rate of Rs 50. The government provides the workers seven kg of foodgrain per head, at the same rate it provides to Below Poverty Line (BPL) cardholders. A panchayat has also started functioning in the tea garden areas.

But, admits Anima Munda, a worker at Kathalguri and member of the Camacho gram panchayat, very little could be offered under the National Rural Employment Guarantee Scheme (NREGS). For example, in August, those at Kathalguri got work for all of seven days. And, the wages have been left unpaid for months, defeating the very purpose of NREGS.

Kathalguri’s hospital death register tells the real story. More than 500 people have died from the garden over the past seven years. While malnutrition, anaemia, blood dysentery, fever, etc were mentioned in some cases as the cause, in most cases no specific reason for death has been recorded. Subrata Sarkar, a social worker who took upon himself the task of monitoring the conditions of life in closed tea gardens, claims there were at least 150 hunger-related deaths in Kathalguri.

The Paschim Banga Yuba Kalyan Manch (PBYKM), an NGO working with the hapless garden families, points to the lack of potable water as a major factor, coupled with the inadequate food intake, to make the workers and their kin disease-prone. After much persuasion by the PBYKM, the state public health engineering department had agreed to sink a deep tubewell in the garden. But, it didn’t happen, since the OMC did not like the ‘interference’ by the NGO. – Business Standard

]]> 4330 2009-09-30 07:46:21 2009-09-30 14:46:21 open open surviving-just-about-in-the-commune-gone-sour publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6397#comments wfw:commentRSS http://zikkir.com/business/6397/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6397 syndication_item_hash c9fc4ede0f1dab42d7e8447927574cbb IIT faculty fasts for a day to protest low pay, ‘micro-management’ http://www.ethiopianreview.com/business/4329 Wed, 30 Sep 2009 14:47:11 +0000 http://zikkir.com/business/?p=6399 Most of the 1,500-odd faculty members of the Indian Institutes of Technology (IITs), who observed a day-long fast to express their dissatisfaction with the modified notification of the Union Ministry of Human Resource and Development (MHRD), reiterated that their protests were not just over pay increases but the ministry’s attempt “to micro-manage the IITs”.

The IIT-Bombay faculty forum said all faculty members performed their normal teaching and other academic duties while on fast. Besides, a day-long panel discussion on “IITs and the IIT System: Vision for 2030” was also held.

“Under the new pay scales, a bright fresh PhD cannot enter the IIT system as a teacher in a permanent position. Also, 60 per cent of professors necessarily have to languish in a lower salary than their remaining 40 per cent peers, not because they are not bright enough to meet the criteria, but because the government has done away with the “Flexible Cadre Structure”, which has been at the core of excellence of the IIT system.

“In the fixation of existing faculty to appropriate scales, a ratio of 9:1, 4:1 and 5:1 (for assistant professor, associate professor and professor respectively) is being used up to a limit by MHRD for IIT scales, while it is 2:1 in the case of Sixth Pay Commission fixation for the central government employees. The pay fixation rules have been changed for IITs and as a consequence the benefit of the initial higher basic pay has not percolated down. The same rules/principles as used in the case of 6th CPC fixation for the central government employees should be applied to IITs,” a media release from IIT-Bombay said.

“Our strike is no more only about pay scale. It is now about the overall autonomy of IITs. Earlier, choosing a certain number of faculty members was left to the IIT systems but that’s not the case anymore. At IITs, we are fighting against these extraneous restrictions, which will affect our productivity,” said U A Yagnik, dean, academic programme and student affairs, IIT-Gandhinagar.

Unlike the larger and older IITs, where the mandated faculty strength is 500 to 600, the newer ones have been sanctioned a strength of 60 members.

At-IIT Roorkee, for instance, most of the 400 faculty members observed the hunger strike that the All India IIT Faculty Federation (AIIITFF) called. The faculty members are of the view that salary is a narrow way of looking at the agitation. The institute’s student strength will increase from 4,000 to 8,000 in three years and it will have to make a lot of effort to get adequate faculty, they asserted.

“The issues that we are raising are very important because they will affect the quality of the institutes in the long run. The 40 per cent cap on promotion of professors to senior grade is a major one. We are also concerned that with the number of students set to increase by 54 per cent in the next three years owing to the other backward classes (OBCs) and general intake, we will find it difficult to hire the required faculty members,” said D K Paul, Dean of faculty affairs, IIT-Roorkee.

On the IIT Kharagpur campus, of 540 faculty members, around 120 went on fast. “Despite observing the hunger strike, our professors conducted classes as usual. There were certain issues with the government for which faculty members have chosen to protest in a silent way,” said an official at the institute.

He added that after the ministry’s modified order allowing for a pay increase to assistant professors after they complete three years of service, there was a feeling in the campus that dialogue with the government would prove beneficial. “Our (faculty) federation is in dialogue with the ministry and other than a few differences, we are well taken care of,” the official added.

“No doubt, hiring faculty for the newer IITs and IIMs will be difficult because we ourselves face challenges in hiring quality faculty members. But we have taken the responsibility of mentoring IIM Trichy, so we will do our best” noted Pankaj Chandra, director of IIM-Bangalore.

But there are some faculty members who believe that protest is unbecoming for a big brand like IIT. An IIT faculty member, on condition of anonymity, said: “The MHRD is not insensitive. The current faculty protest is not good for IITs’ image. They should have face-to-face discussions and solve the issue.”

The AIIITFF, according to another senior faculty member who did not wish to be named, is now planning to call for a working meeting with all the stakeholders of the IITs — the MHRD, IIT directors and board of governors — to look into the issue of making teaching an attractive profession. – Business Standard

]]> 4329 2009-09-30 07:47:11 2009-09-30 14:47:11 open open iit-faculty-fasts-for-a-day-to-protest-low-pay-%e2%80%98micro-management%e2%80%99 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6399#comments wfw:commentRSS http://zikkir.com/business/6399/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6399 syndication_item_hash abe2e00722eaadc9bcf64138e0b77e41 Ambani brothers in fresh gas dispute http://www.ethiopianreview.com/business/4328 Wed, 30 Sep 2009 14:48:27 +0000 http://zikkir.com/business/6401 RIL issues notice to Reliance Infra to pay dues for supplies to its Andhra power plant.

BSE | NSE
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The Ambani brothers have opened yet another front in their dispute over gas supplies from the Krishna-Godavari basin, with Mukesh Ambani-owned Reliance Industries Ltd (RIL) issuing a notice to a power plant run by Anil Ambani-owned Reliance Infrastructure, threatening to stop gas supplies for non-payment of dues for the first fortnight of September.

Reliance Infrastructure (RelInfra) Ltd operates the 220 Mw Samalkot power plant in the East Godavari region . The plant requires 1.1 million standard cubic metre a day (mscmd) of gas of which RIL was supplying 0.52 mscmd on a fall-back basis in August though the agreement was for 0.19 mscmd at a price of $4.2 per million British thermal unit.

The two companies had signed a Gas Sale and Purchase Agreement (GSPA) on April 27 after an empowered group of ministers allocated the Andhra plant gas supplies.

Earlier this month, RelInfra wrote to RIL stating that it would not pay any marketing margins on the gas since the charge was illegal and unwarranted because it was not a result of any marketing undertaken by RIL or any other agency. RIL had claimed $0.135 per million British thermal unit as marketing margin from RelInfra over and above the base price of $4.2 a unit.

RelInfra had so far been paying RIL the marketing margins but now says the margin is illegal since it does not have government approval.

The two groups are already locked in an intense legal dispute over supply of gas from RIL’s D6 field in the Krishna Godavari basin at a price of $2.34 per mBtu for Anil Ambani’s impending plant at Dadri in Uttar Pradesh.

An RIL spokesman said the company’s notice, issued on September 22, “has been issued in accordance with the terms of the Gas Sale and Purchase Agreement executed between RIL and RelInfra”.

In response to RIL’s notice, RelInfra said the marketing margin was in contempt of a Bombay High Court order of January 31, 2009, and was also in violation of a production sharing contract and a government executive order that approved the price. It said the court had permitted RIL to sell gas as an interim measure at a price of $4.2 a unit. “We are making due payment of the sale consideration ie $4.2 per million Btu for supply of gas under the GSPA. We are not liable to make payment of any illegal and unauthorised charge,” said the RelInfra letter sent to RIL today.

The government has so far maintained that it has not fixed or approved the amount of marketing margin on natural gas sales by any contractor and the issue should be discussed by the buyer and the seller as part of GSPA. – Business Standard

]]> 4328 2009-09-30 07:48:27 2009-09-30 14:48:27 open open ambani-brothers-in-fresh-gas-dispute publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6401#comments wfw:commentRSS http://zikkir.com/business/6401/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6401 syndication_item_hash 3f86c367bf5e57c6d838dcfbcc728417 Kathalguri Tea Estate labours under a Marxian delusion http://www.ethiopianreview.com/business/4327 Wed, 30 Sep 2009 14:49:26 +0000 http://zikkir.com/business/?p=6402 The Kathalguri Tea Estate in the Dooars, is now closed. Situated 40 km from Jalpaiguri, on the India-Bhutan border, it was a big garden with more than 1,200 acres of plantation and 1,479 workers. The annual output of the garden used to be 12 million kg of processed tea and sources in the Dooars Branch of the Indian Tea Association say it could have yielded up to 16 million kg of tea if it had been run properly.

Today, seven years after it was abandoned by its exhausted owners in 2002, the tea bushes are unkempt, the statutory pruning and cropping hasn’t been done for years and all the shade trees are gone. Shade trees are imperative for the growth of tea bushes. Asked what happened to these, the workers admitted that they had cut down all the trees themselves and sold the wood to contractors. In a plantation that is more than 100 years old, most of the shade trees were over 80 years old. According to Bhado Lohar, secretary of the local union, more than 10,000 shade trees have been felled that way. The contractor paid Rs 500 for each of the trees, many more than 50 years old.

The same was the fate of the machinery in the nearby Kathalguri Tea Leaf Processing factory. The factory was stripped down and the parts sold to feed starving mouths. “We all knew what was happening at the factory shed. But how we could we prevent it ? The men were so desperate!” reminisced Dayamanti Patel, who used to work in Kathalguri.

How did this happen? Dayamanti was candid. “Enough of the OMC, we need a proper owner for the garden,” she said. OMC or Operating Managing Committees were the state government-supported organisations of workers that oversaw the sale of tea leaves to contractors in the absence of the owner/management. This system was put in place after a hue and cry in the media about hunger-related serial deaths in closed tea gardens.

But the story is not just about how these estates were closed but how they were ground into the dust by a nexus of some workers and contractors. Kalpana Kamin and many other workers in Kathalguri were of the same opinion: that the OMC had turned into another tool of oppression and what workers — who are living a life at subsistence levels — needed was proper management of the garden.

Unlike other industries that close, even a closed tea plantation continues to generate some revenue by selling its seasonal crop, the green leaf. In the first two months of this year, tea leaf from Kathalguri fetched up to Rs 17 a kilo.

The rate has come down to Rs 10 today. The average yield from the garden is 9,000 kg a day. Most workers are of the opinion that the OMC has become a prisoner of the contractors and the members of the OMC are more concerned about lining their own pockets.

The sale proceeds are supposed to be kept in bank under the close supervision of the district administration. But a cursory examination of the annual income and expenditure statements prepared by the OMC of the various closed gardens shows that lakhs of rupees remain unrealised. In Kathalguri the amount is Rs 21 lakh, which according to the present OMC spokesman Sushil Oraon, was not paid by S Bagchi, a contractor. Bagchi, however, denies the charge saying he made purchases only against cash payment.

This pattern is common to almost all the closed gardens. The Shikarpur Tea Estate, which according to the district administration is the best managed garden by any OMC, has in its statement of account a large sum of money listed under the head “unrealised” from contractors for which no explanation was forthcoming.

Several allegations are made by the workers against the OMC members. Each of the 1,479 workers was forced to make a one-time payment of Rs 300 each to the OMC for the restoration of the electricity in the garden. There is no trace of that fund.

Although vehemently rejecting the charges, Sushil Oraon, the convener of the present OMC of Kathalguri, was unable to explain how the funds went missing. He also admitted that the OMC had neither initiated any move to recover the “dues” nor lodged any complaint with the Block Development Officers (BDO). However, he maintained that now the contractors were selected through a tendering process to eliminate corruption. – Business Standard

]]> 4327 2009-09-30 07:49:26 2009-09-30 14:49:26 open open kathalguri-tea-estate-labours-under-a-marxian-delusion publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6402#comments wfw:commentRSS http://zikkir.com/business/6402/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6402 syndication_item_hash 9d78d4c3e2520ff7095491d7626ed928 AI board okays pay cut affecting nearly a fourth of all staffers http://www.ethiopianreview.com/business/4326 Wed, 30 Sep 2009 14:50:30 +0000 http://zikkir.com/business/?p=6404 Compromise on earlier, stiffer proposal; more cost savings to follow.

The board of directors of National Aviation Company Ltd, which runs Air India, today approved a productivity-linked incentive (PLI) cut of up to 50 per cent for all officers, including top management.

The cut, approved at its meeting in Mumbai, will be effective from PLI payable for August onwards and over 7,000 of the 31,000 employees will be affected.

The decision is a compromise on the earlier proposal from the management for a 50 per cent cut in PLI across the board, something opposed by the employee unions.

AI’s annual wage bill is Rs 3,100 crore, of which 40 per cent is the PLI component. The earlier 50 per cent cut would have saved the airline over Rs 600 crore annually. Its spokesperson declined to comment on the amount they will now be able to save.

However, sources in the industry say the amount would be much lower now and could also impact the airline’s plan to save Rs 1,000 crore annually.

“The cut, applicable to all officers, including top management personnel, in various management disciplines, will range from 25 per cent for those getting PLI of Rs 10,000 or less per month and 50 per cent for those receiving PLI or flying related allowances of Rs 2 lakh or more per month,” said a release from the airline.

The cut for those receiving PLI of Rs 10,001 to Rs 25,000, Rs 25,001 to Rs 50,000 and Rs 50,001 to Rs 2 lakh will be 35 per cent, 40 per cent and 45 per cent, respectively, the release added.

However, the unions fear this could be just the begining of more severe cuts. “As of now, the management has left the unions. But we fear they might come to us with a similar offer,” said Dinakar Shetty, a representative of the ACEU.

After the unions’ opposition to the 50 per cent cut proposal, the management named a committee headed by Anup Srivastava, Director-Personnel, to review the PLI norms and give a report by September 30. The panel gave its report today.

AI is seeking a bailout package in the form of equity infusion and soft loan from the Union government. The latter formed a Committee of Secretaries (CoS) headed by Cabinet Secretary K M Chandrasekhar and also comprising aviation secretary M M Nambiar, finance secretary Ashok Chawla and the Prime Minister’s principal secretary, T K A Nair, to monitor the recovery of the airline on a monthly basis.

The CoS, in its last meeting, asked the beleaguered airline to cut costs aggressively. The airline is also planning to monetise assets by shifting out of the iconic Nariman Point headquarters in Mumbai and Airlines House in Delhi. – Business Standard

]]> 4326 2009-09-30 07:50:30 2009-09-30 14:50:30 open open ai-board-okays-pay-cut-affecting-nearly-a-fourth-of-all-staffers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6404#comments wfw:commentRSS http://zikkir.com/business/6404/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6404 syndication_item_hash 593366a23ec9c18114951ed30d7c111e Desertec lines up partners for massive solar project http://www.ethiopianreview.com/business/4325 Wed, 30 Sep 2009 14:53:55 +0000 http://zikkir.com/business/?p=6406 1
Desertec is looking for investors to pay for its 400-billion-euro project

A project to build giant solar power plants in North Africa has captured to the interest of “dozens” of firms who want to join the initiative, according to a newspaper report published Wednesday.

When the Desertec solar power initiative was first unveiled in July, a dozen German companies – including industrial giant Siemens and reinsurer Munich Re – agreed to cooperate and build a series of solar-thermal power plants in the deserts of North Africa and transmit the energy to Europe via underwater cables, providing up to 15 percent of the continent’s electricity needs.

That list could soon swell, with “dozens” of companies from outside Germany vying to join the initiative, and with a negotiation round scheduled for Thursday, according to a report published Wednesday in the Handelsblatt daily newspaper

“The list of those who have expressed interest is long,” Ernst Rauch, the Desertec project leader for Munich Re, was quoted by the newspaper as saying.

The Desertec Foundation did not respond to a request by Deutsche Welle to comment on the Handesblatt report.

The newspaper reports that the number of partners in the project will rise to about 20 by October and may include Italian utility Enel, Spanish company Red Electrica Espana, French utility EdF and a number of other companies in Morocco, Tunisia and Egypt.

Handelsblatt also reported that the initiative, currently organized as a non-profit venture, is in the process of transforming itself into a limited liability company and plans to begin recruiting both a chief executive officer for the company and a president who can serve as the public face of Desertec.

Energy security

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Desertec wants to build thousands of solar power plants across North Africa

Although the initiative was dreamt up by German industry, Desertec will need all the partners it can get to become reality. The project’s backers estimate the construction of the hundreds of solar power plants and transmission facilities will cost approximately 400 billion euros between now and 2050.

Since the project’s announcement, the Desertec plan has captured the imagination of business and policy leaders in Europe and North Africa.

“This is a holistic concept, it’s not only secure energy, it’s not only climate change, it’s also about migration, it’s also about water, it’s also about poverty,” Desertec board member Max Schoen said in an interview with Deutsche Welle shortly before the project was unveiled.

Schoen and other Desertec founders envision the project helping to create jobs and economic growth on Europe’s poverty-stricken periphery while also providing Europe with a secure source of carbon-free renewable energy. – DW-WORLD.DE

]]> 4325 2009-09-30 07:53:55 2009-09-30 14:53:55 open open desertec-lines-up-partners-for-massive-solar-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6406#comments wfw:commentRSS http://zikkir.com/business/6406/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6406 syndication_item_hash 15c134796dbd98ba74832c8216087fee Gift tax turns more draconian http://www.ethiopianreview.com/business/4374 Thu, 01 Oct 2009 03:40:26 +0000 http://zikkir.com/business/?p=6408 From October 1, taxpayers will have to pay a tax for accepting any gift worth Rs 50,000 or above. This means any gift-in-kind, the value of which exceeds Rs 50,000, will become taxable in the hands of the person who gets it. So far, only gifts in cash of the same value were taxable.

Certain categories of gifts, however, will be exempt. Gifts from a relative on the occasion of a marriage, under a will or by way of inheritance, in contemplation of the death of the donor, from any local authority or fund or trust will not be subjected to tax.

A relative will include a spouse, brother or sister, brother or sister of the spouse, brother or sister of either of the parents, any lineal ascendant or descendant and spouse of any of the relatives.

“Any such person who receives a gift of any such property on or after October 1, 2009 must pay the income tax due on the value of the gift and disclose the taxable value of such property in the return of income for assessment year 2010-11 and subsequent years,” the finance ministry said in a statement on Wednesday.

For example, for a Rs 4,00,000 car received from a friend, the receiver would have to pay up to Rs 1,20,000, if his or her income falls in the highest tax bracket of 30 per cent.

The gift, which could include immovable property or any other property, will be taxed as income from other sources under clause (vii) of sub-section 2 of section 56 of the Income Tax Act. – Business Standard

]]> 4374 2009-09-30 20:40:26 2009-10-01 03:40:26 open open gift-tax-turns-more-draconian publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6408#comments wfw:commentRSS http://zikkir.com/business/6408/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6408 syndication_item_hash 46dd45aa9be6562d8f8c4673f7e04196 AI pilots call off stir http://www.ethiopianreview.com/business/4373 Thu, 01 Oct 2009 03:41:40 +0000 http://zikkir.com/business/?p=6410 Management agrees to defer pay cuts, sets up committee to discuss issue.

The 188 executive pilots of Air India today called off their protest and returned to work late this afternoon after the management agreed to put cuts in performance-linked incentive (PLI) payments “in abeyance”.

The airline’s management also agreed to set up a committee with representation from both executive pilots and the management to discuss the issue of pay and allowance cuts.

There was some initial confusion over when the protest was called off. V K Bhalla, who represented the executive pilots announced to the press that the protest had been called off in the morning. Later, he had to concede to the demands of colleagues who declined to join work until the management issued a re-drafted office order that categorically put the PLI cut in abeyance.

Pilots also rejected an initial draft that suggested that the committee would comprise members from the civil aviation and finance ministries and the management led by Air India Chairman and Managing Director Arvind Jadhav.

The letter accommodating their demands was issued only late in the afternoon.

An Air India spokesperson said flights will return to normal by tomorrow morning. Bookings on all sectors of Air India’s network have also re-started. Today about 50 per cent of the flights were cancelled.

“We will immediately get back to work, and the protest is over.The government has agreed in writing to keep the ‘talibani’ order in abeyance and hold discussions with us,” said V K Bhalla, who represents the protesting pilots.

The new office order indicates a softening of the management’s stance of 27 September, a day after executive pilots disrupted flight operations, in which only a “modification” of the PLI cut was specified after mutual discussion.

Pilots say the compromise offered on the 27th was unacceptable because it assumed that some cuts would be inevitable. “Our position was clear: even the question of whether a cut is required or not and if so, how much should be discussed by a committee. That is why we rejected this order and continued the strike,” said a senior executive pilot.

Last night, after Civil Aviation Minister Praful Patel urged pilots to get back to work by midnight or face action, Bhalla received an assurance that the cuts would be put in abeyance.

The Air India management also agreed to disburse all flying allowances that have been pending for three months to the executive pilots by 7 October.

Sources, however, said the airline management had also prepared a contingency plan to be followed from October 1 if the executive pilots did not call off the protest. According to the plan, services of a large number of flights would be suspended and pilots sacked.

According to the official, Air India can terminate the services of employees who form a part of the management (starting from deputy general manager level) on the ground that any act by them is against the interests of the airline. – Business Standard

]]> 4373 2009-09-30 20:41:40 2009-10-01 03:41:40 open open ai-pilots-call-off-stir publish 0 0 post wfw:commentRSS http://zikkir.com/business/6410/feed rss:comments http://zikkir.com/business/6410#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6410 syndication_item_hash 51e3014a5d44d2ee2c06ff2352a525cb Results hopes push Sensex past 17,000 points http://www.ethiopianreview.com/business/4396 Thu, 01 Oct 2009 03:46:00 +0000 http://zikkir.com/business/?p=6412 The Bombay Stock Exchange Sensitive Index surged past 17,000 points after 16 months on hopes that quarterly earnings due from next week would be better than the Street’s initial expectations as advance tax payments indicated robust profits.

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Sentiment was also boosted by firm trends in Asian and European markets. The relatively strong debut of the Oil India Ltd (OIL) scrip added to the overall feel-good mood. The stock listed at a 4.38 per cent premium on the National Stock Exchange (NSE) at Rs 1,096 against the issue price of Rs 1,050. The stock gained during the day and closed 8.09 per cent higher to the listing price.

The Sensex started on a sedate note, but climbed 1.63 per cent or 273.93 points, to 17,126.84. It touched an intra-day high of 17,142.52 and an intra-day low of 16,868.46.

The Nifty closed up 77.10 points or 1.54 per cent at 5083.95.

Helped by soaring foreign portfolio inflows, the Sensex logged its third consecutive quarterly gain, rising 18.2 per cent in the September quarter — the longest run of quarterly gains since end-2007 and following a 49 per cent jump in the June quarter. It rose 9.3 per cent in the month.

Most market players were bullish in their outlook. They said the direction for the market, at least in the short term, was clearly up and there was visibility in terms of earnings which was adding to confidence. Vaibhav Sanghavi, a director at Ambit Capital, said the risk appetite of investors has increased and they were more confident now. “The markets are in a bull run for a long period,” he said.

Some others however weren’t that upbeat. D D Sharma, Senior Vice President – Research, Anand Rathi Financial Services, said though the Nifty crossed the major resistance level of 5,045, the uncomfortable part was that volumes were not heavy and the Nifty futures were at a discount.

FAST TRACK RECOVERY
No trading days
Session I Session II
8k to 9k 63 7
9k to 10k 40 5
10k to 11k 32 10
11k to 12k 15 11
12k to 13k 135 10*
13k to 14k 45
14k to 15k 126 13
15k to 16k 51 67
16k to 17k 5 15
Total 512 138
Session i ( Sep 2005-Oct 2007)
Session ii (Mar 2009-Sep 2009)
* The Sensex jumped from 12k to 14k without touching 13k

Ravi Kapoor, Managing Director, Head of South Asia Capital Markets Origination, Citi, said although there were no negative triggers on the horizon, valuations were “looking a bit toppish” and the outlook was that of cautious optimism. Most foreign institutional investors (FIIs) were overweight on India and the flow of liquidity might further drive valuations upwards.

In the broader market today, 1,611 gainers were ahead of 1,215 losers on above- average volume of 480.2 million shares. Today, most sectoral indices were in the green with the bankex (3.69 per cent) and auto (2.13 per cent) leading the pack. The FMCG index was the only loser, slipping 0.42 per cent.

The market breadth was positive. Out of 2,858 shares traded, 1,598 advanced and 1,183 declined on the BSE.

State Bank of India surged 5 per cent to Rs 2,195.70 after the finance ministry said India had finally begun to recover from the recession, as can be seen from higher corporate tax revenues. ICICI Bank, Sterlite and Wipro rose 4.63 per cent, 3.46 per cent and 3.30 per cent, respectively. Auto stocks, Maruti Suzuki and Mahindra & Mahindra added 3.70 per cent and 3.46 per cent respectively.

“Oil India remains a favourite for long term, say, two-year investments. But for short-term trades, it is fully priced”, said Manish Sonthalia, Portfolio Manager, Motilal Oswal Financial Services. However, ONGC slipped 1.25 per cent to Rs 1,165. Bharti

Airtel dropped 0.07 per cent ahead of its decisive meeting with MTN.

OIL may fuel primary market
OIL’s strong debut removed fears that investor appetite for initial public offers would dry up after the lacklustre listing of a couple of companies such as Adani Power and NHPC in the recent past. NHPC rose 1.9 per cent on the listing day and is now trading at Rs 34.55, below its IPO price of Rs. 36. Adani Power is trading at Rs 101 against its issue price of Rs 100.

“The OIL listing is likely to bring in high retail participation in some of the other public sector IPOs,” said Amitabh Chakraborty, equity vice president at Religare Securities.

While pricing worries remain, bankers expect IPOs to raise over Rs 50,000 crore in the next few months. Power companies such as GMR Energy, Indiabulls Power and JSW Energy are expected to lead the charge along with public sector companies such as Bharat Heavy Electricals and NTPC and NMDC, which would launch follow-on offers.

The government is likely to divest 10 per cent of its holding in NTPC, which also plans to offer 10 per cent fresh equity and hopes to raise Rs 6,000 crore through its follow-on offer.

Satluj Jal Vidyut Nigam and National Mineral Development Corporation (NMDC) will also hit the capital markets with their initial public offer in this financial year.

While Anil Ambani-led Reliance Infratel announced its intention to raise Rs 5,000 crore (Rs 50 billion) from the primary markets, three real-estate firms Lodha Group, Emmar MGF and Sahara Prime City announced their IPO plans on Tuesday.

Some analysts think pricing remains a worry. “Even though the market seems to be flooded with new issue announcements, not all the shares may witness good listing unless companies shed their greed and leave something for investors on the table,” said Deven Choksey, managing director of Mumbai-based K R Choksey Shares and Securities. – Business Standard

]]> 4396 2009-09-30 20:46:00 2009-10-01 03:46:00 open open results-hopes-push-sensex-past-17000-points publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6412#comments wfw:commentRSS http://zikkir.com/business/6412/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6412 syndication_item_hash f3d88836f2def9ed4b3f417c710e6c3f Bharti, MTN disconnect a second time http://www.ethiopianreview.com/business/4395 Thu, 01 Oct 2009 03:47:39 +0000 http://zikkir.com/business/?p=6414 South African government could not ‘accept the deal in current form’.

After over four months of negotiation and two deadline extensions, the proposed $23-billion cash-and-share-swap deal between Bharti Airtel and South Africa’s MTN has been called off.

A press release issued by Bharti this evening said the two companies had decided to “disengage from discussion”, owing to the inability of the South African government to “accept the deal in the current form”.

South Africa’s national Treasury said MTN informed it was not able to conclude the outstanding matters that would have enabled the transaction to proceed.

This is the second time in two years that talks between the two have failed (see table). The deal would have created the world’s third-largest telecom company. The press release added that Bharti would continue to “explore international expansion opportunities”.

Under the deal, the Sunil Mittal-promoted company was to acquire a 49 per cent “economic interest” in MTN. In return, MTN would have acquired 25 per cent “economic interest” in Bharti Airtel for $2.9 billion and MTN shareholders were to acquire another 11 per cent.

CALL LOG
2008
May 6: Bharti Airtel begin talks with MTN to buy stake in the South African company
May 25: Bharti and MTN call off talks
May 27: Reliance Communications (RCom) and MTN sign a 45-day exclusivity agreement to negotiate a deal
Jul 19: RCom and MTN call off talks

2009
May 25: Bharti-MTN announce talks for a $23-billion share-swap-and-cash deal. Deadline set for July 31
Aug 3: Bharti-MTN extend deadline from July 31 to August 31
Aug 20: Bharti-MTN extend deadline again to September 30
Sep 14: South African government says
MTN’s ‘South African character’ must be maintained
Sep 15: Indian government says open to dual listing in India
Sep 24: Officials from the South African government meet Sebi, RBI and finance ministry mandarins

In total, MTN and its shareholders would have acquired 36 per cent in Bharti Airtel, India’s largest telecom company, in the form of global depository receipts (GDRs) that would have listed on the Johannesburg stock exchange. MTN is also listed in Johannesburg and is South Africa’s largest telecom company.

“It would have been a good deal for both. But the problems were at the South African end since MTN is considered a crown jewel, so issues of control of the company are key for them,” said Mahesh Uppal Delhi based telecom analyst.

The South African government has a major say in MTN in which it owns 21 per cent through Public Investment Corporation. Statements by leading South African officials last month suggested that the government wanted to maintain MTN’s “South African character” and was looking for a different structure for the deal. This has been interpreted to mean that it had reservations about ownership and management participation by a non-South African entity.

A post-deal management structure also faced the challenge of complying with South Africa’s stringent affirmative action policies that mandate that the majority of the board and the management of the company needed to be Black.

In mid-August, the South African government approached India’s finance ministry to explore the possibility of allowing for dual listing for Bharti and MTN as a solution.

Dual listing would have enabled MTN and Bharti to have a separate legal existence and separate shareholders, but share the risks and rewards of ownership of all operating businesses in a fixed proportion. The two companies would have had the same board of directors and an integrated management team.

Finance Minister Pranab Mukherjee told the South African Finance Minister Pravin J Gordhan on the sidelines of the G20 summit that the Indian government would be open to allowing dual-listed companies but did not offer firm assurances. On September 10, he wrote a letter to Gordhan saying the issue of dual-listed companies was “receiving due attention from the government”.

Prime Minister Manmohan Singh who met South African president Jacob Zuma recently in the G20 summit last week in Pittsburgh also discussed the deal on the sidelines of the meeting.

Last week, however, hectic discussions between Indian regulatory authorities and South African officials suggested that though the Indian government was open to the idea, the policy would take a long time to be operational owing to the need for major changes, not least in terms of foreign exchange legislation and capital account convertibility.

On September 22, the Securities and Exchanges Board of India (Sebi) added to the complications by announcing that global depository receipts (GDRs) will now be treated on a par with equity and cannot be exempted from an open offer. Earlier in response to a query from Bharti, Sebi had ruled that foreign firms buying GDRs with voting rights in an Indian company are not required to make an open offer until those instruments are converted into equity.

With this change either MTN would have had to make an open offer, which it was unwilling to do since it would have raised acquisition costs, or Bharti would have to seek a special exemption on the ground that the two would merge, which could have been tough to obtain.

Agencies report that MTN Group requested that trading in its securities on the Johannesburg Stock Exchange be suspended on Wednesday. The rand, which depreciated 2.5 per cent to a dollar, fell the most since August 6, 2009. – Business Standard

]]> 4395 2009-09-30 20:47:39 2009-10-01 03:47:39 open open bharti-mtn-disconnect-a-second-time publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6414#comments wfw:commentRSS http://zikkir.com/business/6414/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6414 syndication_item_hash 4d84da5b29843ad241679d8aa5e79e4c Credit freeze melts slightly as ECB continues lending http://www.ethiopianreview.com/business/4394 Thu, 01 Oct 2009 03:51:56 +0000 http://zikkir.com/business/?p=6416 1
The ECB continues to pump cash into the economy, lending 75 billion euros on Wednesday

Does the fact that fewer lenders lined up for the European Central Bank’s latest round of credit injections mean the markets are on track to recovery?

The ECB said Wednesday it had lent eurozone banks a little more than 75 billion euros ($110 billion) for one year in an exceptional move aimed at boosting the economy. This was the second time the ECB has offered an unlimited amount of funds for 12 months at its benchmark rate of 1.0 percent.

The amount taken up was nearly one sixth of the record 442 billion euros pumped out in late June and far less than the 135 billion euros a Reuters poll predicted banks would demand.

This suggests that conditions on interbank money markets have improved significantly in the past three months as economies worldwide rebound from the worst global slump since the Great Depression.

The one-year loans are the most spectacular of the ECB’s raft of so-called enhanced credit measures designed to fuel the economy and promote the flow of credit between commercial banks and the wider economy.

This time around, a total of 589 commercial banks requested a total of 75.241 billion euros, an ECB statement said.

Businesses, consumers still suffering from credit freeze

2
ECB head Jean-Claude Trichet wants banks to lend more to the private sector

Despite the surge of funds into the market, new private sector lending within the eurozone has almost dried up, according to an ECB report released Friday.

ECB president Jean-Claude Trichet insisted on Monday that the central bank expected banks to fulfil their role in lending to businesses and households.

Analysts have warned that companies might have difficulty in obtaining financing during the economic recovery phase, and some say lending to the private sector could begin to contract despite the flood of central bank cash.

The latest ECB loan operation was modest in size, Capital Economics economist Jennifer McKeown told AFP news agency it “is unlikely to do a great deal to stimulate bank lending.”

She was encouraged however by signs “that banks feel more able to borrow from each other,” renewing the normal state of affairs that was disrupted with the collapse of US investment bank Lehman Brothers one year ago.

Credit window ‘closing’

The latest operation is expected to be followed by one more 12-month loan in December, at which the interest rate might be higher, a separate statement said Tuesday, signaling that end of the central bank’s exceptional intervention in the lending markets was drawing to a close.

“That window is gradually closing,” Kenneth Broux, financial markets economist at Lloyds bank in London, told the Reuters newswire.

“The economy has turned a corner and the bottom line is that central banks are making the first tentative steps towards unwinding the emergency liquidity programs, and maybe the ECB will do so in the next few months as well.” – DW-WORLD.DE

]]> 4394 2009-09-30 20:51:56 2009-10-01 03:51:56 open open credit-freeze-melts-slightly-as-ecb-continues-lending publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6416#comments wfw:commentRSS http://zikkir.com/business/6416/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6416 syndication_item_hash 8868b455cb99cbff3def7f6d2087631e IMF: No silver bullet for financial markets http://www.ethiopianreview.com/business/4393 Thu, 01 Oct 2009 03:54:28 +0000 http://zikkir.com/business/?p=6418 1
Officials from the IMF and the World Bank are in Istanbul for high-level talks

One year after the collapse of Lehman Brothers investment bank, the International Monetary Fund paints a rosier picture of the world economy. But risks are still lurking in the balance sheets of banks around the globe.

Just a year ago the global financial system was on the brink of a meltdown. Since Wall Street giant Lehman Brothers declared bankruptcy last year in September, trillions of dollars have been pumped into markets by an unprecedented series of government stimulus packages. The US alone provided a US$700 billion (478 billion euros) to rescue the country’s ailing banks.

Today the biggest bailout in history appears to have paid off: risks to the global financial system have subsided and the global economy is beginning to show signs of recovery. That’s the bottom line of the International Monetary Fund’s latest Global Financial Stability Report, which was presented at a key conference of the IMF and the World Bank Group in Istanbul on Wednesday.

“The world economy is on the road to recovery, but this does not mean that risks have disappeared,” Jose Vinals, Director of the IMF’s Monetary and Capital Markets Department, pointed out.

For both banks and other financial institutions, the IMF study calculates that actual and potential write-downs from bad assets such as loans and securities have fallen by some $600 billion over the past six months – from about $4 trillion to a still staggering $3.4 trillion. But the report also warns that so far only about half of all toxic and impaired assets have been written off by banks in Europe and the United States.

Tight credit threatens rebound

1
Vinals says the road to economic recovery is paved with risks

The IMF says the biggest threat to a sustainable recovery of the global financial system is that wary banks with tougher lending rules will hamper economic expansion.

Jose Vinals puts it this way: “If we fail to meet the challenges still being faced by the financial system in the present crisis, we risk reigniting systemic risks and even derailing the economic recovery.”

At their meeting in London last April the leaders of the Group of 20 nations, the G-20, pledged to contribute an extra $500 billion to the IMF’s ‘New Arrangements to Borrow’ (NAB) program. This money will be used in particular for emerging market economies, which are increasingly feeling the pain of a credit crunch.

Another key challenge, the IMF indicates, is to find the right balance between policy intervention and the withdrawal of support by governments. Experts say the markets seem to be counting on the steady supply of cheap money provided by central banks with record-low interest rates, and therefore warn that a new market bubble is already in the making.

So the IMF is sending mixed signals from Istanbul: “The good news is that bank’s capital positions and earnings have substantially improved since the last Global Financial Stability Report, and significant capital has been raised.”

If the question were whether banks have enough capital to supply sufficient credit to support the recovery, the IMF believes that the answer is “no”.

IMF director Jose Vinals admits that policymakers and financial institutions around the globe are exploring new territory as they fight the biggest financial crisis in 80 years.

Or as Vinals himself puts it: “There is no silver bullet to save financial markets.” – DW-WORLD.DE

]]> 4393 2009-09-30 20:54:28 2009-10-01 03:54:28 open open imf-no-silver-bullet-for-financial-markets publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6418#comments wfw:commentRSS http://zikkir.com/business/6418/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6418 syndication_item_hash 58e68fc9003c7128c14de7b40268f2de Speculators and the oil price Data drilling http://www.ethiopianreview.com/business/4392 Thu, 01 Oct 2009 03:59:12 +0000 http://zikkir.com/business/?p=6420 The CFTC shines a little light on oil markets

BASHING “speculators” is a popular pastime for American politicians trying to explain high and volatile oil prices. But whether speculation has really been responsible for prices spiking is a controversial issue. In 2008 the Commodity Futures Trading Commission (CFTC) issued a report dismissing the role of speculators in last year’s startling run-up in prices. But banks, hedge funds and others who bet on oil (without a use for the stuff itself) still face limits on the positions they can take, if Gary Gensler, the new CFTC head, can show that their influence in markets does harm.

1
On September 4th the CFTC added more evidence to the debate by releasing what it said were more transparent data on market positions. Before this month, the CFTC simply classified traders as “commercial” or “non-commercial” in its weekly report on the overall long and short positions in the market. Now it has started to disaggregate them further, into producers and users, swap dealers and “managed money”. The third category includes hedge funds.

What do the new data show? Swap dealers and managed-money investors on NYMEX, the New York commodities exchange, were both long on oil as of September 1st—the latter by more than a 2-to-1 ratio (see chart). Producers and users, by contrast, were net short on oil. Swap dealers and managed-money players outnumber physical traders.

But analysts at Barclays Capital note that swap dealers still accounted for just 6.4% of total options and futures contracts, not enough to drive prices up on their own. Physical traders held more of the outstanding long positions (10.3%), and held even more short positions. This one set of numbers, in other words, does little to prove that speculators are overriding market fundamentals to influence prices. New quarterly data also released by the CFTC this month show that money flows to exchange-traded funds (ETFs) for commodities failed to correlate strongly with last year’s price surge.

There are more disclosures to come. The CFTC says it will soon release disaggregated data going back three years. If those numbers, like the quarterly ETF data, are equally unconvincing on the role of speculation, the case for limiting positions will be weakened. And a strong counter-argument remains: that speculators provide crucial liquidity. Even if they also have some effect on prices, taking them out of the game could well do more harm than good. It is tempting to look for scapegoats when high prices hurt consumers. But the real culprits for oil-price volatility may be much more familiar: supply, demand and global instability. – The Economist

]]> 4392 2009-09-30 20:59:12 2009-10-01 03:59:12 open open speculators-and-the-oil-price-data-drilling publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6420#comments wfw:commentRSS http://zikkir.com/business/6420/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6420 syndication_item_hash 979e82c001b74e0cdf0fdf82d2458191 The MBA curriculum Steering a new course http://www.ethiopianreview.com/business/4391 Thu, 01 Oct 2009 04:02:51 +0000 http://zikkir.com/business/?p=6422 A year after the collapse of Lehman Brothers, a new intake of students begin their first week at business school. Will they be taught to do things differently?

Alamy
1
Back to school

As a new academic year begins, it is not just the students who have that first-day-at-school feeling. Business schools themselves have spent the past 12 months wondering whether they need to re-invent themselves in response to a global financial crisis to which many believe they lent a helping hand. For them, too, there is the trepidation of a new beginning.

Few business schools would disagree that the credit crunch has become their defining moment. The arguments—that failed firms such as Lehman Brothers were chock full of the alumni of prestigious schools, who were complacent and greedy, too focussed on the short term and unwilling to question financial instruments of which they had little understanding—are well rehearsed. But regardless of whether such criticisms are valid, it is certainly true that the crisis has fundamentally changed attitudes towards both business schools and the art of management itself.

As a result, schools have agonised over how to save their flagging reputations. MBA programme directors have spent their summer holidays pondering what constitutes a proportionate response: totally overhaul their curricula and they may appear hasty and ill-considered; change nothing and they would be seen to be in a state of denial.

Most have settled for modest adjustments. Columbia Business School in New York, for example, set up a faculty committee that delved into every aspect of the MBA programme. But it is introducing just two new modules—on the future of finance and the collapse of the auto industry. At Thunderbird School of Global Management in Arizona, too, there is to be no ripping up and starting afresh. Instead, students on the Global MBA course are to be brought together at the end of the programme for a final module on global citizenship.

The lazy pace of change is proving a frustration for some. Angel Cabrera, president of Thunderbird, worries that schools are missing an opportunity to transform themselves from followers to leaders. “As late as last year, business schools were still debating whether it was irresponsible to use the resources of a corporation to do anything that wasn’t directly related to maximising shareholder value,” he laments. “But the biggest corporations in the world all had social strategies in place—the business world had already resolved this, but we were still debating it.”

However, the speed of transformation is being hampered by a fundamental tension within business schools. They may like the idea of being leaders, but academia, by its nature, takes a long time to implement changes. When professors want to introduce new modules, in response to fast-moving events, they have to go through a lengthy approval process: other faculty have to be won over, academic competency has to be proved, and it has to be demonstrated that the course design meets the quality threshold of the programme, the school and accrediting bodies.

And, in any case, Dr Cabrera’s annoyance is not universally shared. Others argue that it should be seen as a flaw if a school’s curriculum is seen to change too radically—even in such radically changing times. Terry Ilott, course director at City University’s Cass Business School in London, rejects the idea that a school which can’t rush through transformation lacks nimbleness. “It’s not cumbersome, just rigorous,” he explains. “I would be very suspicious of a school that could chop-and-change its curriculum at short notice. In any case, the idea that all business schools have been caught on the hop is a bit of a journalistic myth. A business school that found itself responding to events without anticipating those events would be a pretty poor business school.”

Back the basics

Furthermore, schools must be wary of change just for the sake of it. Thomas Cooley, dean of New York University’s Stern School of Business, believes that the basic tools of business haven’t changed just because of the crisis. But even if the fundamentals of marketing, economics or finance remain valid, teaching them in the context of corporate failures will become a leitmotif. “It is one of the great historical events,” he explains. “It has changed the tone of everything.”

Randall Kroszner, a former governor of the Federal Reserve and an economics lecturer at Chicago University’s Booth school, agrees that his MBA students will notice a change of emphasis, if not a radical new curriculum. “If I just taught my money class as I did four years ago I wouldn’t have the same emphasis on the housing market or the inter-connections between the banking and non-banking financial systems. I touched on it, but one would be foolhardy not to put a new emphasis on it.”

Monetary policy is another example. Five years ago, the theoretical possibility of a zero lower bound on interest rates may have been mentioned in passing, but most students saw it as such a low-probability event for most developed countries that they didn’t pay it much attention. Now it is a real issue that affects business decisions.

Corbis
2
Lessons in depression

One area in which the crisis seems to be having a more fundamental effect on curricula is a renewed interest in economic history. Both Stern and Chicago expect brisk interest in new courses examining the lessons from America’s Great Depression in the 1930s. At Cass, Professor Ilot’s MBA students will study the formation of 18th and 19th century companies, such as Cadbury’s or old Quaker firms, which, he says, “started with a view that the long-term sustainability of the enterprise depended on responsible behaviour in all aspects of the organisation.”

And it is not just the academic curriculum that is changing. MBA programmes have for many years been a strange hybrid of academic degree and vocational course. Equally as important as teaching theory is imparting the “soft skills” needed to brave a difficult job market after the programme. One area in which this is becoming more noticeable is a greater emphasis on personal development. At Cass, the new intake is, for the first time, being psychometrically tested during the first week of the programme. The idea is that students will go through their MBAs more aware of their strengths and having addressed their weaknesses, making them more employable when they leave. With a sceptical world awaiting them, they may need all the help they can get. – The Economist

]]> 4391 2009-09-30 21:02:51 2009-10-01 04:02:51 open open the-mba-curriculum-steering-a-new-course publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6422#comments wfw:commentRSS http://zikkir.com/business/6422/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6422 syndication_item_hash 623b775df93a580f01a496bcacf14c05 Global house prices It’s life, Jim http://www.ethiopianreview.com/business/4390 Thu, 01 Oct 2009 04:06:36 +0000 http://zikkir.com/business/?p=6424 House prices are creeping up again. That may not last

1

THE latest survey of global house prices conducted by The Economist still makes for gloomy reading. Among the 19 countries we survey each quarter only Switzerland and China had housing markets that registered any increases in the 12 months to June. But the figures mask a modest recovery. In eight of the 16 surveyed countries for which quarterly data are available, house prices rose in the three months to June. Hong Kong and Australia led the charge, with prices rising by more than 4%.

In America the picture is murkier. The Case/Shiller national index of house prices rose by 2.9% in the second quarter, which was the first quarterly increase in three years. But other figures from the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae and Freddie Mac, two mortgage-financing agencies, showed a price decline of 2.4%.

Why the divergence? The FHFA index does not cover properties that have been financed by subprime loans or deals above the price cap for regulated mortgages. That excludes the bottom end of the market, where price falls have been much steeper and bottom-fishers have been lured back into the property game.

The FHFA numbers also strip out the top end of the market, where there are reasons to think that prices will stabilise more quickly. Banks are insisting on higher deposits from would-be homeowners, for instance, but such hurdles are less of an impediment for those with lots of cash on hand. Foreign buyers provide an extra source of demand for swanky properties. Stockmarkets roared back to life in the second quarter, too, which may have increased investors’ risk appetite. Rising prices in higher-value properties, coupled with higher volumes in lower-priced ones, may be disguising stodginess in the middle of the market.

There are other caveats about the strength of a recovery. Governments are offering some short-term props to the market: first-time buyers in America are eligible for tax credits on deals that close before the end of November, for example. There are also fears of a new supply glut as owners are tempted by stabilising prices to put their homes back on to the market.

Mortgage rates are at historically low levels, which is helping buoy transactions, but if central banks begin to withdraw unconventional programmes to support the housing market, such as the Federal Reserve’s purchases of mortgage-backed securities, the recovery may slow. That is in part because houses are still badly out of historical kilter with incomes, despite the price falls of the past two years. In Britain house prices remain 170% higher than they were in 1997, but average earnings have risen by only 55% in the same period. Steep declines in affordability have also taken place in Ireland, Spain and Australia. – The Economist

]]> 4390 2009-09-30 21:06:36 2009-10-01 04:06:36 open open global-house-prices-it%e2%80%99s-life-jim publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6424#comments wfw:commentRSS http://zikkir.com/business/6424/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6424 syndication_item_hash bf8d02c0617f5fda150bdffde05c6fc0 Shyamal Majumdar: India Inc’s labour pains http://www.ethiopianreview.com/business/4389 Thu, 01 Oct 2009 04:08:27 +0000 http://zikkir.com/business/?p=6426 The Pricol and Graziono cases are extreme ones, but there has been a steady rise in the number of worker disputes

A week ago, Roy George, the 46-year old HR head at automotive components firm Pricol, was beaten to death in his office by iron bar-wielding workers. While the company claimed that the violence was instigated by left-wing trade union leaders linked to the Naxals, the unions blamed the attitude of the management over the past two years that led to the violence.

The trigger for the murder was the dismissal of 42 workers at the company’s Coimbatore unit and the investigating officers have already pointed out that it was a specifically planned and systematically executed attack. The finger of suspicion was pointed at a new union (Pricol already had five recognised unions) that preferred a confrontationist stand with the management from day one.

Some reports even said that a few of the new union members had been openly praising workers in a Chinese steel mill who threw their boss down some stairs — he died as a result — as he was managing the sale of the state-owned plant to a private company.

By some strange coincidence, the Pricol incident happened exactly a year after the CEO of Graziono Transmissioni, an Italian auto parts firm, was bludgeoned to death by scores of sacked employees in his office in Greater Noida. That incident followed a long-running dispute between the factory’s management and workers demanding better pay and permanent contracts.

Though these are extreme examples of mob violence and do not signal a broader trend, the past few months have indeed seen a steady increase in the number of labour disputes and flash strikes, the most recent examples being the pilots’ strike at Air-India and Jet Airways.

According to the government data, the number of strikes in 2008 was almost double that recorded in the previous year. The extent of the problem is obviously understated as the data do not capture the labour unrest in the unorganised sector, which employs over 94 per cent of the total workforce. By all available indications, 2009 would be much worse.

The list of labour disputes has been getting longer: The three-week strike at the Pantnagar plant of Nestle after the management removed a few employees for unsatisfactory performance; the 15-day strike at the Mahindra & Mahindra utility vehicles plant at Nashik over suspension of the trade union president; the one-month strike at MRF’s Tamil Nadu unit over rival unions demanding recognition; and the 20-day strike at Hyundai’s plant in Tamil Nadu over recognition of the trade union, are a few high-profile examples.

There was also huge tension when Tata Motors discontinued the services of 4,000 temporary workers and Hyundai did the same for 2,000 workers — decisions which have subsequently been revoked with the automobile market showing signs of improvement. Pricol workers had been agitating for over two years against the hiring of contract workers — a stand that was inexplicably endorsed by the Tamil Nadu government which prohibited the company from employing temporary workers in core operations and ordered it to hike wages, implicitly validating the demands of workers.

So is labour militancy back in India? That may be too strong a term to use, but the fact is that there is some kind of a fear psychosis — something that prompted Ratan Tata to shift the Nano plant out of Singur on grounds that the employees’ safety was at stake. The Nano crisis also led Mukesh Ambani to say that violent protestors were creating a “fear psychosis to slow down certain projects”.

Union leaders say more than the management, it’s the workers who are suffering from a fear psychosis — fear of losing their jobs. There is no doubt that the fear is real. Though things have improved a bit, factory workers have been hit hard by the current slowdown which has meant huge job losses and uncertainty. According to the government’s own estimates, export-oriented companies have laid off over 70,000 employees in the face of a serious downturn, leading the Federation of Indian Exports Organisation (FIEO) to say that at least one million people will be out of jobs, of which half would be from the textiles industry alone.

The Pimpri-Chinchwad industrial area outside Pune has also been severely affected. Over 4,500 small-scale industries in the area have reached zero output and more than 35,000 people lost their jobs. The forgings industry has lost over 50,000 jobs. Or, look at the leather industry, which employs 2.5 million people. The industry had warned of 500,000 job cuts if things didn’t improve and the gems & jewellery industry was talking about laying off over 130,000 workers. Over 30,000 people working in special economic zones are already out of jobs as several such projects have either been scrapped or whittled down. Some of these numbers may be exaggerated, but it does indicate why workers panic the moment managements mention the term ‘restructuring’.

HR experts, however, are hoping that India Inc’s labour pains would reduce as the economic environment has been turning for the better over the last couple of months. – Business Standard

]]> 4389 2009-09-30 21:08:27 2009-10-01 04:08:27 open open shyamal-majumdar-india-inc%e2%80%99s-labour-pains publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6426#comments wfw:commentRSS http://zikkir.com/business/6426/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6426 syndication_item_hash f3c61026ff0fd412e16ea9f10d3c3e9f Kanika Datta: Handling management grievances http://www.ethiopianreview.com/business/4388 Thu, 01 Oct 2009 04:11:23 +0000 http://zikkir.com/business/?p=6428 Associations with board-level representation may sound radical but they aren’t such a bad idea.

Workers and clerical staff have unions, the C-suite has the decision-making powers, but how should the general cadres of white-collar managerial employees express their grievances?

This issue has been starkly highlighted over the last two months when some pilots of, first, Jet Airways and, this week, of Air India struck work over pay and allowances, holding air travellers to ransom country-wide. Much opprobrium has been heaped on them, the conventional view being that pilots, who would broadly correspond to mid-level managers in airlines, are obscenely overpaid and have no right to protest besides displaying a gross sense of irresponsibility.

In Jet Airways’ case, the point was made with all the maudlin histrionics that Chairman Naresh Goyal had perfected during an earlier strike by cabin crew last year. This time, it was cabin and ground crew who held a press conference to beseech their pilot colleagues to abandon the sick-out and return to work. Otherwise, they said, innocent employees, caught in the middle, would be in trouble if the airline lost revenue. The implication: the fat cats of the airline were ruining the livelihood of the toiling lesser mortals.

State-owned Air India played out the drama differently but characteristically with Civil Aviation Minister Praful Patel, with an anxious eye to impending Assembly elections, telling the pilots to return or else — even as compromises were feverishly being worked out backstage.

The jury is still out on whether the pilots of India’s largest private and state-owned airlines have a legitimate case — the fact that both managements backed down doesn’t necessarily suggest the pilots were right. The bigger question, though, is this: if such a category of employees do think they have a valid grievance and if negotiations with senior management fail, how should they react? Is taking mass sick leave or simply not reporting to work — a strike by any other name as the Mumbai high court ruled in Jet’s case — a justified form of protest by people in positions of managerial responsibility, especially when their organisations are bleeding profusely?

The short answer from senior managers is that managerial staff who don’t agree with corporate policy are always free to leave or look elsewhere, a privilege blue-collar labour doesn’t enjoy. This is a fair argument in the kind of open labour market that India has become. Indeed, pilots have done just this in the past, exiting with alacrity from state-owned airlines to private competitors when the industry was booming; their protests now are an indicator of the dire straits in which the airline business finds itself.

It is telling that in the late eighties, union-style protests for higher pay by mid-level managers in the public sector proved signal failures precisely because of the lack of job mobility in those pre-liberalisation days. Around the same time, a strike by Indian Airlines pilots on pay and perks failed for precisely the same reason.

One of the issues in the pilot-management clash in Jet Airways was over whether pilots had a right to form a union. They didn’t, according to the airline’s management, which provided it an excuse not to negotiate — initially, that is; the stance changed later following the widespread havoc the strike created. Apparently, it was okay for the pilots to have a “welfare organisation” but not a grievances forum.

In an economy in which quality of talent counts for rather more than just manpower numbers, viewing the marketplace as an automatic grievance-correcting mechanism could boomerang on managements. Even if we assume that it is unseemly and undignified for managerial cadres to go on strike or haggle via employee unions, the truth is that middle managers remain uniquely disenfranchised.

This is hardly a healthy situation. Forget about the dire predictions about robots replacing middle managers on the shopfloor. In most organisations, despite successive bouts of “de-layering” and “right-sizing”, middle management forms a critical element of the employee base — if not always in numbers, certainly in the nature of the work it performs.

In other words, it makes sense for CEOs to put in place more enlightened “protest management” mechanisms beyond the standard HR structures — to act as (a) early warning systems and (b) create a dignified, non-combative negotiation forum for its managerial cadres. Associations with board-level representation may sound radical but they aren’t such a bad idea — after all, labour union leaders in the West are represented on corporate board, so why not middle managers. Some Scandinavian countries have experimented with such structures.

Management gurus, of course, will tell you that transparent decision-making is the ideal — but experience has shown that most corporations pay lip service to the concept. IT companies, heavily dependent on talent as they move up the value chain, have cracked the system better than most. For an emerging economy like India, such mechanisms could bridge the management deficit that is inevitable in family- and government-owned corporations that currently make up the vanguard of India’s competitive advantage. – Business Standard

]]> 4388 2009-09-30 21:11:23 2009-10-01 04:11:23 open open kanika-datta-handling-management-grievances publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6428#comments wfw:commentRSS http://zikkir.com/business/6428/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6428 syndication_item_hash 2c7f5238f2c423c7d5ceb9bae389b527 Puma on a new track in India: Kidswear http://www.ethiopianreview.com/business/4387 Thu, 01 Oct 2009 04:13:28 +0000 http://zikkir.com/business/?p=6430 It’s proving third time lucky for Puma, the German sports and lifestyle brand, in India. Despite being one of the first international players to have entered the country in the early 90s, Puma came into its own only in 2006 when it took charge of its manufacturing and also stepped up efforts to come up with its exclusive stores.

It is now ready with its line of kidswear as well, which it launched on Wednesday. “Kidswear, which has been there internationally, would complete the range for us in India. It would be a take-off on our adult range of apparel, footwear and accessories,” says Puma India Managing Director Rajiv Mehta.

But Puma’s presence in India did require course corrections since the time it entered the market. While its tie-up with Carona fell through in 1998, its second foray in 2002 could not be sustained either. It had licensed Planet Sports to manufacture its apparel and accessories and distribute its footwear and eyewear. Observers say that in both the instances, quality became the bone of contention.

In 2006, the brand finally took the plunge and set up a subsidiary, Puma Sports India which wielded more control over local manufacturing and imports. “Despite spending less time in the market, we have been able to clock as much revenues as some older players. On a percentage basis, we are more profitable than many others,” asserts Mehta. Puma has already managed to increase the number of its exclusive stores from 45 in April to 64 by September.

Its latest diversification in a Rs 5,000 crore market that is growing at 15 per cent will be with a partner which knows the Indian kids market well. While Puma will keep production and imports under its control, the distribution will be through Giny and Jony. Mehta says Gini and Jony understands the kidswear business in India better than us.

But the biggest lesson that Puma will bank on is its partner’s pricing strategy. Says Mehta, “Kids outgrow their clothes and shoes fast. This is where pricing it right matters the most. With the right prices, parents would come back to your brand to replenish their child’s wardrobe, rather than be discouraged by prohibitive pricing such as Rs 2,000 for a T-shirt.” Puma’s range will feature mid- to premium products, priced from Rs 399 upwards.

Rajiv’s confidence in Puma’s partner is equally reciprocated. Giny and Jony Executive Director Anil Lakhani is looking forward to the variety that Puma’s range will bring in its retail outlets, which he claims already brings in 30 per cent of the Rs 1,100 crore market for premium branded apparel.

But having been bitten twice, Puma is being shy. The brand would watch the performance of its kidswear for the next six months to one year before planning for the future. Lakhani, however, is more positive: “The target for us is Rs 40 crore in the first year following this tie-up.” Gini and Jony has set itself a turnover target of Rs 350 crore, up from Rs 280 crore last fiscal.

Puma has also kept a tight hold on how consumers experience the brand. Puma’s exclusive stores might be run by franchisees, but it has put down guidelines for store executives who are Puma employees. “They are told that they are the CEOs of their stores,” says Mehta. – Business Standard

]]> 4387 2009-09-30 21:13:28 2009-10-01 04:13:28 open open puma-on-a-new-track-in-india-kidswear publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6430#comments wfw:commentRSS http://zikkir.com/business/6430/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6430 syndication_item_hash 579dd07c25449acef8b71b96b09ae031 Liril woos the family http://www.ethiopianreview.com/business/4386 Thu, 01 Oct 2009 04:14:35 +0000 http://zikkir.com/business/?p=6432 Stung by the sharp fall in the premium brand’s market share, Hindustan Unilever has dropped the girls to pitch for family intimacy. Will the new campaign wash?

Before she stopped bathing under a waterfall, Karen Lunel made sure that the Liril ad caught the nation’s imagination. The ad with its famous jingle “la-i-ra-li-ra” ran for 12 years since 1975 and single-handedly catapulted Liril to one of the top-selling soaps with a 14 per cent market share.

The waterfall, the bikini and the jingle continued, though Lunel, who had by then become an icon for the brand, was replaced by an assortment of stars such as Preity Zinta and Deepika Padukone. But the new ads were seen to be merely an echo of the original film. So the ‘Liril girls’ finally bowed out in July this year as the freshness soap’s market share plummeted to just 1.3 per cent.

Since rebranding was the desperate need of the hour to revive the old magic, Liril became Liril 2000 and Hindustan Unilever (HUL) launched a new campaign that stresses family intimacy and speaks about 2000 sensitive points in the human body that teh soap refreshes and rejuvenates.

An HUL spokesperson says the “emotional space” being addressed by the Liril of the seventies was no longer relevant to the Liril consumers (urban women in the higher socio-economic class) of today.

The soap now has a different packaging – the earlier tight-wrapped cover has been replaced by a box-type packing and the light green colour has given way to a darker shade and gloss finish. HUL says it represents “a fundamental re-engineering with an improved product in a contemporary shape and has the signature Liril perfume”.

Ad gurus say it was high time that Liril did something different to survive. The waterfall and the bikini served their purpose at a time when women’s liberation was taking wings. The Liril girls had then broken new grounds in the sense that they took bathing out of the bathroom and turned it into a fantasy. But that became irrelevant in today’s Facebook and FTV era.

In the interim, HUL tried its luck by launching a few variants like Liril Orange, Icy mint, etc, which didn’t quite pick up. Harish Bijoor, CEO, Harish Bijoor Consults Inc, says “variants are essentially bells and whistles products. Most of the time they just add to the advertising zing but very little to top-line sales volume. Though they are necessary, they just come and go.”

The company also briefly moved the account to McCann in 2007. It came back to Lowe Lintas early this year. Lowe offered the ‘relaunch’ cure.

Joseph George, executive director, Lowe Lintas, says, “In the last decade, freshness has become generic to the personal wash category and lime and lemony fragrance is being used by any and all brands. The task therefore was to leverage Liril’s premium heritage and find a new consumer benefit in skin cleansing to make the brand relevant to its audience once again.”

“Today, the premium end of the skin cleansing market is moving to skincare benefits. So, we looked at how we could re-interpret Liril’s core equity of freshness in the context of skincare. The added new benefit of soft skin (due to Aloe Vera) allowed us to offer a unique combination of fresh, clean and soft skin. In communication, this translated into ‘Every part of the body becoming clean, fresh and touchably soft’,” George adds.

The advertising has thus gone off from celebrating “individualistic pleasure” to “family intimacy”. But George denies any brand confusion: “If the new proposition is relevant and compelling, people will accept it. Having said that, it is true that “freshness” is still at the core of the new proposition,” George says.

The agency says the target audience remains same. “Liril was never targeted at the youth; it was a brand that had a youthful imagery. In order to broadbase our appeal, we are now talking to the entire family. However, we have retained the youthful imagery of the brand and have broadbased the appeal to the entire family.”

The rebranding is being seen to address the loss of market share. Anand Ramanathan, Manager, Business Performance Services, KPMG, says, “With time, the choices available to customers have increased. Liril had started losing market share, whereas other soaps like Lux and Lifebuoy have increased/maintained their shares consistently. HUL has taken the Liril girls out of its brand image in order to improve the worsening scenario.”

Besides refreshing the brand, the repositioning makes sense from the portfolio management perspective, too.

Naimish Dave, Director, OC&C Strategy Consultants, says, “It will ensure an efficient deployment of HUL’s brand portfolio in the personal wash segment. With Dove at the super-premium end, Lifebuoy at mass-plus and Lux at mass price points, it is obviously a conscious decision to reposition Liril to target the premium soaps segment.”

However, experts like Bijoor think Liril has now taken the safe route of building an intimate bond within marriages.

But the new strategy of positioning the brand as being clean, fresh and intimate with the family can also be perceived by the market as boring routine.

Watch this space. – Business Standard

]]> 4386 2009-09-30 21:14:35 2009-10-01 04:14:35 open open liril-woos-the-family publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6432#comments wfw:commentRSS http://zikkir.com/business/6432/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6432 syndication_item_hash 980808e4500544be061dc07e94282835 HBS picks Shrachi project as case study http://www.ethiopianreview.com/business/4385 Thu, 01 Oct 2009 04:15:58 +0000 http://zikkir.com/business/?p=6434 After picking up the largest slum in Asia, Dharavi, as a case study, Harvard Business School (HBS) will now take up four more real estate development stories from India, including the public-private partnership model in which Kolkata-based Shrachi has collaborated with the Burdwan Development Authority (BDA) to develop a township, as case studies for the class of 2010 and henceforth.

John D Macomber, lecturer, HBS, who was in Kolkata on Wednesday to interact with leading city-based real estate developers, said HBS intended to nearly double the number of real estate case studies from India, out the total 200 odd-case studies on real estate from across the world, at its library. “We are currently looking at four case studies from India, which includes Dharavi slum and Sharchi. We are also looking at business strategy for real estate companies, like whether there should be one product strategy for all studies or all whether it should be city-specific,” said Macomber. Shrachi Burdwan Developers Pvt Ltd, a joint venture company between BDA and Shrachi, is developing a satellite township, namely Renaissance, spread over 256 acres, on the outskirts of Bardwan town.

Formed in 2002, the BDA is a statutory authority under the Government of West Bengal, with the vision of developing Bardwan as an ideal destination for industry. It was instrumental in acquiring land for the Renaissance project, and Shrachi had emerged as the highest bidder for it. The project is a part of emerging markets case studies by HBS highlighting the success of urban-rural settlement model, and the challenges faced by developers in rural areas.

Macomber said, it was interesting to note the Bengal government’s participation with private developers for mass-housing project, as the model was not in vogue in many developed countries or in other parts of India. – Business Standard

]]> 4385 2009-09-30 21:15:58 2009-10-01 04:15:58 open open hbs-picks-shrachi-project-as-case-study publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6434#comments wfw:commentRSS http://zikkir.com/business/6434/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6434 syndication_item_hash 2b44e73497c6cc8e14d3bca1f7da5ac2 Lewis departure catches BofA board off guard http://www.ethiopianreview.com/business/4384 Thu, 01 Oct 2009 04:18:07 +0000 http://zikkir.com/business/?p=6436 Ken Lewis said that the acquisition of Merrill Lynch would be the last major purchase he ever made as chief executive of Bank of America. He was right.

Last September, as the financial world reeled from the prospect of bankruptcy at Lehman Brothers, he swooped in to buy Merrill in an all-stock deal for $17bn. At a press conference the next day, he rejoiced over the potential of the combined power of his extensive banking operation and Merrill’s unparalleled network of financial advisors.

Mr Lewis announced on Wednesday that he would step down from his position as chief executive of Bank of America at the end of the year. His decision follows a contentious nine months in which he battled regulators and lawmakers over the controversial takeover of Merrill, his lack of communication with shareholders and his secret December deal with the government in which he agreed to complete the Merrill purchase in return for $20bn in taxpayer funds.

Mr Lewis’s announcement, at a hastily called board meeting in New York, took the directors by surprise, says Tom Ryan, chief executive of CVS, who will serve on the search committee to find Mr Lewis’s successor. For Mr Lewis, the announcement brings him full circle from the time last October when he was celebrated on the TV programme 60 Minutes as a folk hero for agreeing to buy Merrill Lynch to a political punch bag for his role in the complicated deal whereby Mr Lewis agreed to complete the Merrill acquisition only after his job was threatened by federal regulators.

For Mr Lewis, it was death by a thousand cuts, as the earnings generated by BofA’s Merrill Lynch subsidiary were overwhelmed by regulatory setbacks and squabbles.

The latest setback, and the one which might have been the decisive blow against his continued leadership of the bank, grew out of a case brought by the Securities and Exchange Commission in August alleging that BofA made misleading statements to shareholders last year.

In August, BofA and the SEC agreed to settle the matter, with the bank admitting no liability, for $33m. But the federal judge overseeing the matter, Jed Rakoff, blew up the deal, criticising the SEC for failing to identify which individuals were responsible for the allegedly misleading statements, and forcing the commission to prepare for a trial in the matter.

In addition to the SEC inquiry, BofA has been at war with New York attorney-general Andrew Cuomo since January, after the Financial Times reported that Merrill had paid out $3.6bn in bonuses on an accelerated schedule, even as BofA was negotiating a $20bn rescue package with its regulators.

In April, just before BofA’s annual shareholder meeting, Mr Cuomo issued a report suggesting that Mr Lewis and his board agreed to complete the Merrill acquisition only after former treasury secretary Hank Paulson threatened to remove him and the board if BofA tried to invoke a “material adverse change” clause to renegotiate the deal. The report and shareholder discontent were enough to cause Mr Lewis to lose a vote on whether he should be allowed to remain as chairman of BofA. – FT.com

]]> 4384 2009-09-30 21:18:07 2009-10-01 04:18:07 open open lewis-departure-catches-bofa-board-off-guard publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6436#comments wfw:commentRSS http://zikkir.com/business/6436/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6436 syndication_item_hash d457acbc970d9a12d74acaa2055309b9 Treasury misses deadlines to present reforms http://www.ethiopianreview.com/business/4383 Thu, 01 Oct 2009 04:19:09 +0000 http://zikkir.com/business/?p=6438 The US Treasury, which is pressing Congress to move quickly with financial regulatory reform, has missed some of its own deadlines to develop policy on regulation.

“A New Foundation”, the framework for regulatory overhaul published in June, contains a timetable for the delivery of five reports on proposed policy changes affecting money market funds, the Federal Reserve, bank supervision, the harmonisation of the Commodity Futures Trading Commission and Securities and Exchange Commission, and new capital requirements for systemically significant companies.

By Thursday, four of the five dates will have been missed, leaving intact only the year-end target for the report on changes to capital requirements. The delays raise questions about the Treasury’s resources and whether there is sufficient co-ordination between agencies.

Not all the reports are the direct responsibility of the Treasury but it has a role in most. The Fed, SEC and CFTC are supposed to collaborate on different reports.

The CFTC and SEC said they “anticipate in two weeks” delivering to Congress a report – due on Wednesday – on how to harmonise their roles.

Thursday should see reports on the future role of the Fed and on changes to bank supervision. But the Treasury has agreed that the Fed can delay its report on aligning its structure with its responsibilities.

”We are having extensive discussions with supervisors and outside experts and hope to have a comprehensive report within weeks,” said the Treasury on Wednesday of the bank supervision report.

It said the capital report, due on December 31, was on schedule.

Tim Geithner, Treasury secretary, has long warned of the danger posed by an economic recovery to the impetus for reform and exhorted Congress not to falter in the drive for change.

Scott Garrett, a Republican representative from New Jersey and member of the House of Representatives financial services committee, said: “It may be ironic that [the Treasury] don’t have their own house in order but of course Congress doesn’t have its house in order either.”

He said: “Congress has repeatedly missed its timeline as well under the same party’s leadership so I guess they are both singing from the same song sheet.”

The House financial services committee, led by Barney Frank, the chairman, is racing to complete a packed schedule of hearings and legislation drafting by the end of the year. But other Democrats participating in the reform, particularly in the Senate, have said the passage of legislation could spill over into next year. – FT.com

]]> 4383 2009-09-30 21:19:09 2009-10-01 04:19:09 open open treasury-misses-deadlines-to-present-reforms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6438#comments wfw:commentRSS http://zikkir.com/business/6438/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6438 syndication_item_hash edbb4fcd2990dc2ac9030059d7aad4e1 Avoid the insurance illustration trap http://www.ethiopianreview.com/business/4382 Thu, 01 Oct 2009 04:24:37 +0000 http://zikkir.com/business/?p=6440 When an insurance agent provides a projection of your life insurance payout, there’s a lot of data to wade through. Here’s what to look for — and look out for.

A life-insurance-policy illustration is a set of projections, prepared by the actuarial department of an insurance company, that shows how your policy will perform over your lifetime.

It includes financial projections for each year. If it’s a term policy, the projections extend to the date the policy ends. If you chose permanent life insurance, the projections stretch beyond your 100th birthday.

For term insurance, a policy illustration usually shows at least three things: current and maximum premiums for each year; total premiums paid up to that year; and each year’s death benefits. If your policy has “re-entry” provisions for certain years — requiring you to qualify for the benefits through a physical exam, for example — there are columns telling you the premiums if you passed (”re-entered”) or failed the company’s medical requirements.

Sounds easy, doesn’t it? If you are stopping at term insurance, you are in luck. If not, be prepared for a shocker when you take a look at your first policy illustration for permanent life insurance.

An illustrative nightmare
Permanent insurance illustrations are complicated enough to make you want to give up the buying process altogether. The typical term insurance illustration runs two or three pages and contains perhaps 100 numbers. For permanent life insurance, the illustration can run 10 pages with 1,000 numbers. Further complicating this numerical morass: Except for the numbers listed in the “guaranteed” columns, the actual payout for virtually every number you see is bound to be higher or lower than projected.

Why are permanent life insurance illustrations so unreliable? Obviously, the company has to project dozens of years into the future, estimating how well it will invest its portfolio and what its expenses and mortality costs will be. So, except for guaranteed premiums, cash value and death benefits, the future payouts you see in the illustration are pie-in-the-sky figures.

Many reputable agents tell their clients to forget the nonguaranteed numbers altogether and to consider them as icing on the cake (the cake being the guaranteed part). But some agents don’t, and they brandish the illustration as their primary sales weapon in the battle to get your business.

The interest rate ’sting’
Life insurance agents often sell particular products by touting the company’s “current interest rates” and “current dividend rates.” It is tempting to just buy the policy with the highest current rate.

The problem is that current rates are usually guaranteed for only three to 12 months, and some of the life insurance companies with the highest current rates have the most expensive policies in the long run.

Making illustrations work for you
If you keep all of these factors in mind, there are ways to make illustrations work for you.

First, agents are required to give you all of the pages of the life insurance illustration, including the one with the Interest Adjusted Net Cost (IANC) indexes. These “box scores” for each policy take into account the premiums paid as well as the time value of money. They give you the cost per $1,000 for both guaranteed and projected death benefits (for term and permanent policies) and for the policy’s cash value (for permanent policies).

You can use these indexes to compare different policy illustrations in an apples-to-apples way.

Ask for the payoff projections
When comparing illustrations, you should always ask for projections that show the payoff if current interest rates continue into the future. Then you should ask for a second illustration that shows the payment if the rates drop by 2 percentage points. It is surprising how much the numbers differ when the scenarios change. This is especially important when comparing policies from different companies. Go for the policy that looks best at the lower rate. That is probably the most conservative company, and therefore it has a better chance of meeting its projections.

Ask your agent for an illustration questionnaire from The American College for all companies you are considering, and then ask the agent to explain the information to you.

If your agent doesn’t know what the IQ is or can’t explain what’s on it, you should buy from someone else. If an agent talks to you about variable life insurance, he or she must have a National Association of Securities Dealers license, because that’s considered an investment product. Sometimes unlicensed agents discuss the product with prospective clients and then have a licensed agent actually sign the application and submit it.

Finally, remember that clothes may make the man, but illustrations don’t make the company. Illustrations offer only a glimpse into how well a company thinks (or wants you to think) its policy will perform for decades to come. By knowing what illustrations to ask for, how to compare them and what your agent should do, you will maximize your chances of picking the right one. – MSN Money

]]> 4382 2009-09-30 21:24:37 2009-10-01 04:24:37 open open avoid-the-insurance-illustration-trap publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6440#comments wfw:commentRSS http://zikkir.com/business/6440/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6440 syndication_item_hash 35df68852085bd2026778311f9202416 10 kinds of insurance you (probably) don’t need http://www.ethiopianreview.com/business/4381 Thu, 01 Oct 2009 04:29:09 +0000 http://zikkir.com/business/?p=6442 It can be tempting to try to plan for every possibility, but chasing security can often mean losing money. These policies are usually worth avoiding.

1. Private mortgage insurance. When you buy a house, the mortgage company wants to make sure it won’t be hurt too badly if you skip town without paying off the loan. Unless you can put down at least 20% of the home’s value, you’re usually required to get PMI. The policy’s purpose is mainly to secure the lender’s investment, but in recent years it’s become a means for people to buy a home with a much smaller down payment.

But homeowners pay for it in the long run. Premiums can amount to as much as a 13th mortgage payment each year.

Once the outstanding balance on your mortgage drops below 80% of the original value of the home, federal law says your lender must notify you that you can cancel the insurance. As unlikely as it may be in the current housing market, if your home has appreciated rapidly, you can also apply to cancel PMI. But be prepared to pay for an appraisal ($300 to $400) to prove your point.

2. Service contracts. These “extended warranties” are usually worth skipping. A service contract is simply a promise to perform or pay for certain repairs or services. Service contracts often duplicate what’s provided in the standard warranty you get with a car or an appliance. Read your regular warranty carefully. Then compare it to the service contract. Sometimes, you can purchase service contracts later, when the original warranty expires.

Also keep in mind that if you purchase such items with a credit card, the card issuer often provides its own warranty on the purchase. (See “4 hidden ways credit cards help you.”)

3. Separate policies vs. riders. Buying separate policies to cover things like boats or RVs may not be your best choice. Check out whether supplemental coverage is already available through your existing homeowners policy.

A major reason is cost. Think of it as buying in bulk. When you add a rider to an existing policy, it usually costs less than buying a whole new policy. Also, many of these “things that move” are already covered by your home insurance, albeit at less-than-ideal levels.

4. Flight insurance. According to some statisticians, you could fly on a major airline every day for 26,000 years before you’d be involved in a plane crash. Even then, the odds are that you’d survive the crash. Besides, you may already have flight insurance, if you purchased your plane ticket with a credit card. Some credit card companies give you up to $100,000 in coverage just for charging your ticket on their card.

5. Credit insurance. This insurance is often pushed on consumers. The most important thing to remember about credit insurance is that a lender cannot make you buy it.

There are several variations (including credit life insurance, credit health or disability insurance, and credit unemployment insurance), and they all do the same thing: They pay the lender if you can’t. So why would you want to pass on credit insurance?

Well, for one reason, you might have enough life insurance, disability insurance or assets to cover your debts. Or, you might be able to buy a term life insurance policy for less, and the payout would be higher.

6. Short-term, cash-value life insurance. If you don’t hold onto them long enough, cash-value life insurance policies are a waste of money. Cash-value life insurance theoretically offers both a death benefit (the money paid to your heirs when you die) and a return on investment. Your equity in the policy — the cash value — builds up over the years, and you can borrow against it or simply stop paying on a policy and let the annual dividends keep the policy in force. While your survivors will still get the death benefit, these policies cost you big chunks of money in the first few years.

According to a study by the Consumer Federation of America, it takes five years before one of these policies shows a positive return. And even then, that return is extremely small. Even after 10 years, the average return is only about 2%. All of this is due to brokers’ commissions and other fees paid in the beginning of the policy’s life.

If you’re looking for life insurance coverage for a short period, term life is your best bet. The premiums are much lower, and your heirs will still get the death benefit.

7. Life insurance for children. This insurance offers a big death benefit, but kids don’t have debts or dependents. If you’re thinking that a cash-value kid’s life insurance policy would be a good way to save for his or her college education, you could do better putting that money elsewhere. See “How Uncle Sam wants you to save for college.”

8. Mortgage insurance. It’s more expensive than it’s worth. Besides, you could do better with another policy — one that you might already have. These policies are designed to make your mortgage payments if you die or become disabled. If you’re worried about burdening your heirs with mortgage payments, you’d be better off buying straight life insurance. Adding on to your existing life insurance policy is less expensive than mortgage life.

9. Cancer insurance. If you look closely at what you get, you’ll realize there’s a better way to protect yourself in the event you get sick: health insurance. Some cancer-insurance policies promise to refund your premiums every 10 years if you’ve had no cancer. Not a bad deal — if you’re the insurance company.

A study done by the federal General Accounting Office in 1994 found that the largest companies selling plans — covering only hospital stays or diseases like cancer — paid out as little as 35% of the premiums they took in. Some states set payout targets of 75% or more for other policies. While $400 a year may not seem like too much to spend for peace of mind, it’s the narrow coverage provided by cancer insurance that makes it a bad deal. They’ll cover you if you get cancer, but some policies won’t pay for cancer treatments until several years after you’ve bought the policy. And skin cancer, probably the most common form of cancer, often is excluded.

10. Short-term medical coverage. There will be arguments a-plenty here. Often, this coverage is offered to those who leave one job for another. Under the federal COBRA law, your old insurance policy can “follow” you for about 18 months after you leave, but you have to pay the whole premium. (Here’s where you find out just how much your employer’s been kicking in for your insurance coverage.) You don’t have to pay the premiums until 100 days after your last day on the payroll.

But let’s say you’re single, run three miles a day, don’t smoke and are terrifically healthy. You may decide that the cost of COBRA coverage is too high for the low risk of developing a medical problem before you take your next job. If so, don’t take the coverage. But, if you have a family, you may conclude that the risk of not having any coverage is too great. – MSN Money

]]> 4381 2009-09-30 21:29:09 2009-10-01 04:29:09 open open 10-kinds-of-insurance-you-probably-don%e2%80%99t-need publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6442#comments wfw:commentRSS http://zikkir.com/business/6442/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6442 syndication_item_hash 8822be4136039a122722f6735a54c15d Avoid scams by friendly insurance agents http://www.ethiopianreview.com/business/4380 Thu, 01 Oct 2009 04:34:13 +0000 http://zikkir.com/business/?p=6445 Most agents are professional, honest people. But watch out for those who will sell you coverage you wouldn’t wish on anyone.

Many years of covering the insurance industry have convinced me of two things:

A smart, conscientious insurance agent can be a valuable addition to many people’s financial team of advisers. And a bad agent can deplete your wealth quicker than the most efficient cat burglar.

Unfortunately, it’s the bad agents who have been in the news a lot in the past few years. Among the misdeeds:

* Promissory-note scams. Hundreds of agents were caught up in enforcement actions by 28 states, the Securities and Exchange Commission and the North American Securities Administrators Association for selling so-called promissory notes to investors. Typically touted as low-risk and conservative, the investments were actually high risk and often fraudulent. Regulators estimate that investors lost hundreds of millions of dollars.

* Illegal investment sales. Arizona regulators accused nine insurance agents of selling unregistered securities, including promissory notes, viatical settlement policies and interests in ATM machines. Investor losses were estimated at more than $12 million. The Arizona Corporation Commission’s Securities Division said the sweep was prompted by “growing concerns about cross-over abuses in the insurance and securities industries.” In another action, Florida regulators levied similar charges against eight insurance agents who sold “certificates of grantor” contracts issued by a company that promised returns of 9.25% to 15% for one- to 10-year investments. A related SEC filing charged that money from new investors was used to pay bogus returns to earlier investors in a classic Ponzi scheme. Investors lost an estimated $17 million.

* Affinity fraud. In Kansas, an insurance agent pleaded guilty to fraud charges after persuading at least 10 investors, including members of his church, to invest nearly $200,000 with him. The agent used the money to pay personal expenses, including payments in a bankruptcy plan. Targeting members of one’s own religion or ethnic group is known as affinity fraud.

These examples don’t include more routine insurance frauds, such as selling phony policies or pocketing policyholders’ premiums. And they don’t even touch on sales of legal but unsuitable investments — such as saddling elderly investors with high-risk, high-cost annuities. (See “Beware of the annuity salesman’s scare tactics” for more.)

But these cases do point up why it’s smart to be careful when an investment-touting insurance agent heads your way. Even if you’re not susceptible, you might want to keep an eye on the people in your life who are, such as elderly relatives who have close, personal relationships with their agents.

Why the focus on insurance agents?

* Agents have a built-in customer base. Scam artists have figured out, regulators say, that many agents have large, loyal customer bases — and that these agents can be lured to tap these customers when the commissions being offered are high enough. Insurance agents typically know details about their customers’ financial lives that allow them to tailor their sales pitches, and they may have built up trust and rapport with these clients over many years.

* Many investors are looking for yield and safety. At the same time, the incomes and wealth of the most vulnerable people — senior citizens — have climbed in recent years. Because of the huge drop in interest rates since 2000, lower yields on legitimate investments have left many seniors vulnerable to pitches for “safe, high-return” alternatives, said fraud expert Marty Nevrla. “There’s an increasing senior-citizen base who has the cash,” said Nevrla, director of insurance fraud for the Arkansas Insurance Department and a member of the anti-fraud task force run by the National Association of Insurance Commissioners. “The promoters . . . know the money is out there even more than it ever has been in the past.”

* Many agents lack financial sophistication. The promoters typically tout their schemes, including high commission rates, to agents who then push the “investments” on their clients. Unfortunately, the vast majority of insurance agents lack training in evaluating investments. That is apparently why so many couldn’t figure out that “safe” and “high return” are mutually exclusive. Regulators and insurance insiders say such a lack of financial sophistication means the agent is sometimes a victim along with the client. Many of the agents involved in the promissory-notes scams, regulators say, thought the investments were legitimate and lost their own money as well as that of their customers.

“If you don’t know what you’re doing, it’s easy to get taken in,” said Dave Evans, a certified financial planner and vice president of retirement for the Independent Insurance Agents & Brokers of America, a trade group that represents 300,000 property and casualty agents and their employees.

Add to that the fact that more than half of the nation’s 3.2 million agents are independent, Nevrla said. That means they are not regularly audited or reviewed by the companies whose products they sell. And state regulators don’t have the resources to chase after any more than the most outrageous agents.

“They’re floating around out there basically unsupervised,” Nevrla said.

So how can you avoid getting scammed? The easiest course is not to buy investments from an insurance agent, but that may be tarnishing the whole for the actions of a few.

If approached about an investment, keep these things in mind:

* Don’t buy investments from someone who isn’t licensed to sell them. Fraudsters often claim their investments aren’t really securities. That’s baloney. At the very least, your agent should have securities licenses if he or she is selling anything but insurance, Nevrla said, and the investment itself should be registered with the SEC or your state’s securities regulator.

* Call your state insurance and securities regulators. Describe the investment to them and ask if they’ve heard of it, says Gary Sanders, associate general counsel for the National Association of Insurance and Financial Advisors, a trade group that represents 200,000 agents and planners. Regulators won’t have heard of every new scam, of course, but you might avoid getting bitten by one that’s been around awhile.

* Ask what the agent will get paid, and how that compensation compares to the other products she sells. A reputable agent will talk to you about her commissions, Sanders says, and give you some idea of how much she’ll earn on a sale. Evasiveness on this issue should be a warning sign.

* Make sure your agent has some credentials. If your agent is offering financial-planning advice, and you’re not getting a second opinion from an independent adviser, then make sure your agent has some designations to show he’s done more than study a sales brochure. A ChFC (chartered financial consultant) is good, and so is a CFP (certified financial planner) designation. Both require extensive study and rigorous testing in all facets of financial planning, not just insurance.

* Gray hair is good. Avoid anyone who hasn’t been in the business at least two years, Evans said. I like to deal with agents who have been around 10 years or more. Building up a good reputation in a community takes time, and an established agent usually thinks twice before risking her good name. This doesn’t guarantee integrity — most of the agents in the Arizona sweep were in their 50s and 60s, for example — but your chances of harm are usually greater with an upstart who has little to lose.

* Demand to know the downside. There’s an old tune that advises listeners to “Ac-cent-uate the positive, e-lim-inate the negative.” That’s basically the insurance agent’s siren song. Agents know that dwelling on an investment’s drawbacks can kill a sale, so they might not even bring up negatives — even when they’re supposed to. So you have to ask, and keep asking until you get answers that make sense. Every investment has its risks and its drawbacks. Know those specifics before you invest.

* Look for the deep-pocketed third party. Any investment your agent is pitching should be backed by a big-name third party, such as a well-known bank, brokerage or insurance company, Evans advises. Again, this won’t eliminate all possibility of fraud — well-known banks and brokerages can be scammed, too. But at least you’ll have somebody with deep pockets to sue.

By the way, don’t just take the word of the agent or promoter that a big name is involved. Call up the institution independently and ask.

The last word
Finally, and most importantly: Give the investment the sniff test. A high commission might interfere with your agent’s nasal functions, but it shouldn’t affect yours.

“If it looks better than anything you can get anywhere else, and it’s being touted as safe, the red flags should go up,” Sanders said. “The rules of the market are like the rules of physics. They don’t change.”

In other words, if it sounds too good to be true . . . well, you know the rest. Or, at least, you should.

Liz Pulliam Weston is the Web’s most-read personal-finance writer. She is the author of several books, most recently “Your Credit Score: Your Money & What’s at Stake.” Weston’s award-winning columns appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board. – MSN Money

]]> 4380 2009-09-30 21:34:13 2009-10-01 04:34:13 open open avoid-scams-by-friendly-insurance-agents publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6445#comments wfw:commentRSS http://zikkir.com/business/6445/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6445 syndication_item_hash 67f20365a5bae69b71c5a070594c39de Beware of the annuity salesman’s scare tactics http://www.ethiopianreview.com/business/4379 Thu, 01 Oct 2009 04:37:26 +0000 http://zikkir.com/business/?p=6447 High fees, more risk? Here’s why you should be skeptical of pressures to buy a variable annuity.

Regulators have been cracking down on the sale of variable annuities in recent years, charging some insurers and brokerages with questionable sales practices. For example, the Financial Industry Regulatory Authority (then the National Association of Securities Dealers) accused several companies of frightening elderly customers into buying high-cost, high-risk annuities to protect their assets.

The annuity sellers were exaggerating the risks that the elderly could lose their assets because of lawsuits or seizures by creditors, said officials, and downplaying or concealing the disadvantages of annuities that make them inappropriate investments for elderly investors.

(Money in retirement accounts, including annuities, can be safe from seizure in bankruptcy or as damages in a lawsuit, depending on state law.)

Insurers say they’ve beefed up their supervision of annuity sales, but dozens of complaints against companies are still filed each year. Many end with steep fines and suspension of business.

If you’re not familiar with annuities, they come in two basic flavors, deferred and immediate:

* Immediate annuities begin paying out income as soon as you buy them, typically for life.

* Deferred annuities are designed as retirement-savings vehicles. You put the money in now, watch it grow (one hopes) over time, and then take the money out to spend in retirement.

Annuities also can be fixed or variable. Fixed annuities earn a set return. With a variable annuity, your returns depend on the performance of stock, bond or cash investments you choose.

Most regulatory attention is focused on deferred variable annuities. Think of these as a combination of an insurance contract and an investment in which your gains can grow tax-deferred. The insurance part guarantees that, if you die, your heirs will receive at least as much as you originally invested. Annuities also can protect your assets from lawsuits and creditors.

Sounds good, yes? Unfortunately, there are no free lunches in investing.

* Tax deferral has a downside. Your gains aren’t taxed until you withdraw the money, but then you pay at regular income tax rates, which currently range up to 35%. If you held comparable investments in mutual funds or stocks for at least a year, you would pay capital gains tax rates of 5% to 15%. The higher your tax bracket, the less attractive a variable annuity should be.

* The insurance feature means that variable annuities cost more than comparable mutual-fund investments. It takes a while — 10 years or longer — for the benefits of the tax deferral to overcome the extra costs.

* In addition, variable annuities typically come with surrender charges and penalties designed to give you an incentive to leave your money alone. And, because they’re considered retirement investments, any withdrawal you make before age 59 1/2 is subject to a 10% federal penalty on top of any income tax you owe.

All of this makes variable annuities inappropriate for short-term investors, people who won’t live long enough for the benefits to outweigh the costs and those who need immediate income. Because annuities can offer juicy commissions, though, some salespeople push them regardless of whether they’re good for their clients, as illustrated by these enforcement actions:

* A Banc of America Investment Services employee was charged with selling an unsuitable annuity to an 18-year-old. The teenager had received a small inheritance and planned to use the money after college as a home down payment. She was in too low a tax bracket to benefit from any tax deferral and had no need for the death benefit, as she was single and had no dependents. To make matters worse, the NASD says, the broker put all the client’s money in a single equity investment subaccount, exposing her to much higher risk than was suitable.

* An Edward Jones employee was charged with an unsuitable sales transaction for selling a deferred variable annuity to a client who needed current income and who didn’t need tax deferral or the death benefit. The NASD says the client was persuaded to liquidate $60,000 of a $250,000 portfolio to buy the annuity, only to find that her investments no longer generated enough income for her to live on. She wound up having to make $360-a-month withdrawals from the annuity just to make ends meet.

* A Raymond James and Associates representative allegedly persuaded a client to exchange an annuity she’d owned for six years for another. He reaped a higher commission, but the annuity cost her a $1,600 surrender penalty — and left her with an investment with much higher expenses. Had she kept her original annuity for just eight more months, she could have accessed her money with no penalty. The new annuity had a surrender-penalty period of nine years.

If you think you or someone you love has been sold an unsuitable annuity, you can contact the SEC or the FINRA for help. These regulators also offer advice for those considering an annuity, such as the online booklet “Variable Annuities: Beyond the Hard Sell.” If you’re still interested in a variable annuity for retirement savings, here’s how to make sure it’s the right option:

* Don’t buy an annuity that will be held in an IRA or 401k. An annuity’s main benefit is tax deferral, and you’ve already got that in an IRA or 401k. If you’re attracted by the death benefit, buy life insurance instead to ensure that your family will have enough money if you die.

* Don’t buy an annuity until you’ve exhausted other retirement savings vehicles. You shouldn’t consider a variable annuity until you’ve contributed the maximum to your 401k and have fully funded your traditional or Roth IRA for the year.

* Make sure this isn’t money that will be inherited. Annuities, unlike most other investments, don’t get a special tax treatment known as a “step-up in basis” when you die. That can eliminate taxes on stocks, bonds, mutual funds and real estate that are inherited. Your heirs will owe income taxes if they inherit an annuity.

If you’re worried about lawsuits, consider alternatives. There are usually other, cheaper ways to protect your assets, such as buying an umbrella liability-insurance policy.

* Be confident you’re in it for the long haul. Analysts at T. Rowe Price figure you need to own a low-cost annuity for at least 10 years for the higher expenses to be outweighed by the tax benefits. The higher the annuity’s cost, the longer you’ll need to own it. Which leads to . . .

* Shop around. Vanguard, TIAA-CREF, T. Rowe Price and Fidelity are among the companies that offer lower-cost annuities. – MSN Money

]]> 4379 2009-09-30 21:37:26 2009-10-01 04:37:26 open open beware-of-the-annuity-salesman%e2%80%99s-scare-tactics publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6447#comments wfw:commentRSS http://zikkir.com/business/6447/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6447 syndication_item_hash 19b4ef67fd359559e2769c682b58e9d0 Good news: The splurge is back http://www.ethiopianreview.com/business/4378 Thu, 01 Oct 2009 04:42:03 +0000 http://zikkir.com/business/?p=6450 The US economy relies on consumer spending, making forecasts of an age of austerity quite dire. But it looks like our ’spendy culture’ will ride in to the rescue.

With unemployment still rising, home prices still down and credit card lenders tightening the reins, consumers should still be living close to the bone, right?

Not so much. Despite predictions of a long-term age of austerity, the latest economic and retail data show that shoppers have begun to open their wallets again.

Yes, ostentatious consumption is still passé; cheaper choices are the best-sellers at stores such as Tiffany (TIF, news, msgs) and Coach (COH, news, msgs), for example. But consumers are splurging again on little luxuries: trendy clothing, pricey jewelry, big-screen TVs, even visits to strip clubs.

Retail tea leaves
Retailers in August and September revealed these tidbits:

* Little blue boxes at Tiffany containing pieces from a new “Tiffany Keys Collection” of diamond studded pendants — priced from $150 to $15,000 — are going out the doors in big numbers.
* New Poppy handbags at Coach — average price, $260 — are moving briskly.
* Stylish denim-wedge boots, thong sandals, wedge shoes and handbags by Steve Madden (SHOO, news, msgs) are flying off the shelves. So are denim vests and chunky jewelry at Chico’s FAS (CHS, news, msgs).
* Men are spending more on drinks and lap dances at strip clubs.
* Consumers continue to snap up big-screen TVs, and netbooks, the little cousins of laptop computers, are hot.

If you don’t believe these splurges spell a trend, consider the big-picture evidence:

* In a deepening recession we should see spending on discretionary purchases decline. That’s not what we see at all. Using the Zacks Investment Research database, I recently looked at Wall Street analysts’ sales estimates for all companies as of last week, compared with their estimates from 12 weeks ago. Sales estimates for the retail category, which includes Amazon.com (AMZN, news, msgs), Abercrombie & Fitch (ANF, news, msgs), Chico’s FAS and Tiffany, were up 2% to 4% for this year and next. Estimates for the cosmetics and soaps group, which includes Avon Products (AVP, news, msgs), Bare Escentuals (BARE, news, msgs) and Elizabeth Arden (RDEN, news, msgs), were up 2.5% to 3.6%.
* By the end of August, which was when most retailers reported earnings, retailers were beating analysts’ earnings expectations by 5.1%, on average. That’s well above the 10-year quarterly average of 2.6%, notes Ken Perkins of Retail Metrics, which tracks retail sales trends. About 77% of retailers beat expectations, compared with a long-term average of 59%.
* Government data for August showed that consumer spending at bars and restaurants was up 0.65 percentage point as a share of total consumer spending. That’s not huge, but in an age of austerity, this spending would be going down.
* Historically in downturns, changes in consumer spending track about 2 to 3 percentage points above jobs growth, says James Paulsen, an economist and markets strategist with Wells Fargo. Yet in the past six months consumer spending has risen slightly, while jobs have declined by 5%.
* Consumer confidence rose significantly during the summer, says James Russo, the vice president of consumer insights at Nielsen. The percentage of consumers expecting a recovery rose to 26% in July from 19% in April. Plus consumers expressed an interest in spending more on clothing, vacations, consumer electronics and takeout meals.

So while we’re supposed to be feeling hard times and “shopping in our closets,” we see the opposite. Analysts cite three reasons:

1. The ranks of the employed. Despite rising unemployment, most Americans still have jobs and regular incomes. “As bad as the news about the economy is, the majority of Americans are still employed full time, so there is money to be spent,” says Charles Rotblut, an analyst at Zacks.

2. We still love a bargain. Even in hard times, we’re willing to open up our wallets for deals and pay extra for quality. “It’s more about value than anything else,” says Jeffrey Van Sinderen, an analyst at securities research firm B. Riley. “If the price of an item is higher but consumers perceive value, they are willing to pay a little more.” We see this over and over right now. A $3,000 Gucci bag may be out of reach, but the Poppy bag has similar allure. So go for it. Sales improved at Lululemon Athletica (LULU, news, msgs) during the summer even without price cuts because customers respect the quality and design of its sports apparel. Analysts have upped Lululemon sales estimates for this year and next by 10% to 13% in the past 12 weeks. These two reasons explain why discretionary spending hasn’t stopped. The third explains why it’s picking up.

3. The rebound effect. Many people simply feel a little richer after a 50% rebound in the stock market and with all the talk about a possible recovery. Citigroup strategist Tobias M. Levkovich estimates households have regained $5.4 trillion in wealth because of the market rebound. Consider the typical Chico’s FAS shopper — as described by the company. The retailer caters to “mature” women in their 50s and up. During the market slump “she recoiled in terms of her spending when she was seeing her 401k evaporate before her eyes,” says Robert Atkinson, who handles investor relations for Chico’s. “A year ago she just made a beeline to whatever was on clearance.” But today this customer “feels that she has probably recovered some of her personal wealth,” Atkinson says. “Now she is coming in to buy what is fresh, what is new.”

Simply put, we survived. We’re starting to rebound. We’re ready to celebrate a little. So wrap up that little splurge and put a green shoot in that cocktail.

This trend could be critical for an economy still heavily dependent on consumers. From its peak in November 2007, consumer spending has fallen 1.7%, but it still accounts for a little more than 70% of the nation’s gross domestic product — because other spending has fallen with it during the recession, says Mark Zandi of Economy.com.

Here’s a look at some of the hot spots in retail for investors looking to follow this recovery.

Expensive and chic
Sales declined by 14% at Tiffany last quarter, adjusted for currency changes. That’s sounds bad, but it was an improvement over the 18% decline in the quarter before — and in investing, it’s the trend that counts. Analysts have upped sales estimates by 3% to 5% over the past 12 weeks.

At Coach, sales declines have leveled off, thanks in part to those Poppy bags bringing in younger shoppers. The company says the new line contributed to a key reversal in negative sales trends. Coach plans to roll out more lower-priced goods to keep the reversal alive.

Likewise, Movado (MOV, news, msgs), which sells pricey watches, says it’s getting a good response from lower-priced items. Analysts recently have upped estimates by 20% for this year and 29% for the next.

Bargains galore
Sales of moderately priced shoes and handbags at Steve Madden were up 6.5% in the most recent quarter, driven by a 21% gain in products for women like shoes and handbags.

Sales of men’s shoes were flat for the quarter. But the company and analysts upped guidance by 3% to 4% for this year and next.

Consumers have been shopping for bargains at Jos. A. Bank Clothiers (JOSB, news, msgs), driving up same-store sales — sales at stores open more than a year — by 6.2%. But sales of the company’s more expensive suits have risen recently as a percentage of overall sales — confirming that consumers are on the hunt for better quality.

“You see the retailers that offer the best values holding up a lot better than people have expected,” says Eric Marshall, the director of research at Hodges Capital Management, which owns Jos. A. Bank shares in its Hodges Small Cap Fund (HDPSX).

Strip clubs
Business at strip club chain Rick’s Cabaret International (RICK, news, msgs) improved by 14% last quarter, compared with the quarter before. The company is drawing in more customers by offering more drink specials and extending happy hours.

“We’re getting more customers, but they are spending a little bit less,” says Allan Priaulx, who handles investor relations for Rick’s. “Guys who previously would go into a private room for several hundred dollars an hour are now getting several lap dances.”

The chain also converted an upscale Rick’s Cabaret in Dallas to a more moderately priced XTC club, and the response has been huge. “We’ve been able to raise cover charges there recently on the weekends,” Rick’s chief Eric Langan recently told investors.

Consumer electronics
Best Buy (BBY, news, msgs) saw same-store sales decline only 3.9% in the most recent quarter, year over year, compared with 6.2% in the prior quarter, and the company has raised sales forecasts going forward. Likewise, sales at PC Connection (PCCC, news, msgs) advanced by 16% in the most recent quarter, compared with the prior quarter.

That was due partly to higher government spending, but the two companies cited increased consumer interest in notebook computers, mobile phones and flat-panel TVs. “People are still spending — they are just spending on lower-priced products,” says David Rudow, an analyst at Thrivent Financial For Lutherans who follows consumer-electronics trends. Much of the demand is also coming from consumers in Asia, he says.

Strong demand for consumer electronics has led to huge increases in annual sales estimates — 10% to 30% in the past 12 weeks — at companies making components for electronics. They include LG Display (LPL, news, msgs), which makes displays used in TVs and computers, and component makers Western Digital (WDC, news, msgs), Nvidia (NVDA, news, msgs), Volterra Semiconductor (VLTR, news, msgs) and NetLogic Microsystems (NETL, news, msgs).

Are these stocks a buy?
Investors have noticed the retailers that are doing better, and they’ve driven up the stocks accordingly. We’ll need to see more economic growth and hiring to drive retail stocks — and those of their suppliers — higher. They could fall hard if they don’t live up to raised expectations.

But there’s still a lot of pent-up demand for goods, says Bill Patterson, an analyst at Mintel International Group, which tracks consumer behavior. As confidence returns, that pent-up demand will be unleashed.

To feel more confident (and keep spending), consumers will need to see unemployment come down. But consumer demand feeds itself: Because companies have cut jobs to the bone, they’ll need to start hiring and producing more as demand rises because inventories are so low.

“As it becomes clear a depression will not result and, indeed, an economic recovery is forming, most businesses find themselves understaffed without any goods on the shelf,” says Paulsen, at Wells Fargo. “We suspect after a couple quarters of renewed real GDP growth, most will be surprised by a revival in the old ’spendy culture’ of the U.S. consumer.”

Levkovich recently upped his ratings on consumer services stocks to overweight because of signs of improvement in the group.

And here’s another sign that the consumer is coming back. Both Sears (SHLD, news, msgs) and Target (TGT, news, msgs) say that sales of men’s underwear are picking up. And as I’ve written before (in “How your undies track the recession”), as goes men’s underwear, so goes the economy. – MSN Money

]]> 4378 2009-09-30 21:42:03 2009-10-01 04:42:03 open open good-news-the-splurge-is-back publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6450#comments wfw:commentRSS http://zikkir.com/business/6450/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6450 syndication_item_hash 1d6ef905db5281639e10e0cca10dfeda Let Uncle Sam help you buy a fridge http://www.ethiopianreview.com/business/4377 Thu, 01 Oct 2009 04:46:13 +0000 http://zikkir.com/business/?p=6452 A rebate program for energy-efficient appliances is on the way. Also: Surprises from clearing out clutter and a survey on who clips coupons the most.

Some of you may remember when our appliances died — and our brave decision to replace them only when we were able to pay cash.

Last fall we bought a “pre-owned” stove and fridge, and we’ve been doing dishes by hand for a year. Oh, how slowly those sudsy days go by. So we’ve decided it’s time to shell out the cash for a dishwasher.

Well, that, and . . .

After almost three years as chief household officer, my husband is back at work. That means domestic duties have been reassessed. And guess who is getting her hands wet? Right. Suddenly, we needed to buy a dishwasher yesterday.

Just as I was about to hurl myself at the Lowe’s appliance section, I learned that a $300 million Cash for Clunkers-type rebate program is gearing up this fall. It’s to encourage consumers to replace older appliances for new, energy-efficient ones.

Some details:

* It’s a rebate program, not a trade-in. You purchase a new appliance — e.g., a furnace, water heater or washing machine — and as long as it has an Energy Star rating, you can apply for a rebate.
* States have until Oct. 15 to set up their programs, including which Energy Star appliances are covered, how big the rebates will be and how to apply.

I’m hoping it won’t be a giant headache and that funds won’t be wiped out by a wave of early rebaters, but it’s hard to know.

When I called the Department of Energy to find out when I could buy my dishwasher, it said funds wouldn’t be available until later this year or early 2010. But some states may apply the rebate retroactively. (Yay!)

To find out if your state has any information yet, check with your state energy office.

Thought: When are they going to do this for makeup?
De-cluttering for dollars
Does clearing clutter create cash? A small band of Women in Red members has taken to cleaning house and creating order out of crowded closets and hazmat paper piles in the belief that a harmonious space adds up to financial prosperity.

Sound kooky?

Actually, the ancient Chinese art of feng shui — arranging one’s space to increase health, wealth and happiness — is a venerable one. Feng shui (pronounced fung shway) loosely translates to “wind-water,” which refers to the need to balance the elements in your physical environment in order to harness positive energy, or qi (chee).

Does better qi fatten your wallet? Some readers swear it does.

One Women in Red member who goes by “debtheaven2007″ described how she and her husband fixed a long-standing plumbing problem in their basement last year. (Some feng shui practitioners believe leaking water equals lost cash.)

A few days later, the couple returned from a weekend trip to find $3,500 in payments waiting for them, including money for a legal settlement they had waited six years to get. “I told my husband it was because he finally sorted most of the basement,” she wrote. “He said nonsense, but I know better.”

Other readers who made similar changes to their homes — repairs, upgrades or simply dumping old junk — reported getting bigger tax refunds, new jobs, unexpected insurance payouts, etc.

Confession: I believe that when your home is a mess, when clutter threatens your peace of mind, your finances suffer. Call it feng shui or Admitting Your Mom Was Right, but keeping your personal space clean, cheerful and organized so that you don’t lose the phone bill is just smart.

Lisa Zaslow, a professional organizer in New York, agrees. Many of her clients have discovered a financial upside to de-cluttering. Although it’s typically just “found money” — a wad of bills forgotten in a coat pocket or suitcase — sometimes it’s a genuine windfall.

“I was going through some papers for a client once and found a $15,000 tax refund check she thought she’d lost,” Zaslow says.

Feng shui is a lot more complex than just getting organized, of course, but incorporating some feng shui basics as you clean and organize can’t hurt, Zaslow says. She recommends this blog for starters.

Weaving light, water, plants, color and meaningful objects into your decor “can serve as powerful reminders of what it is you’re trying to change in your life,” she says. “It adds a level of intentionality to organizing what might otherwise just seem like ’stuff.’”

If you’re feeling the need to shape up your space, for profit or not, Zaslow suggests three easy ways to start:

* Follow the 15-minute rule. Set aside 15 minutes a day to sort mail, put away clothes, clear surfaces. Just as clutter builds up, so does cleanliness. (Women in Red members who follow the Flylady method swear by this rule.)
* Eliminate piles. Whether it’s papers, magazines or clothes, Zaslow says, tackle the stacks one by one. “Get rid of the no-brainer stuff — old, expired, out of date. Then put away the rest — file it, put it on a shelf, hang it up, find it a home.”
* Make a place for everything and everything in its place. You can’t put something away until it has a home. Buy a hook for potholders, a basket for nighttime reading, bins for out-of-season clothes and folders for bills and receipts.

Don’t worry about the extra expense. You might find a nice fat tax refund in your sock drawer.
Coupon crazy

Who uses coupons the most?
1. Desperate parents with five kids.
2. Widows.
3. Compulsive savers who hoard shaving cream and cake mixes under their beds.
4. Rich people.

Ding, ding, ding! You’re right! It’s . . . rich people, according to a recently published survey by Nielsen, just in time for September, aka National Coupon Month.

I know. I didn’t believe it either. But according to a survey of 10,000 people, coupon usage is up 23% in the first half of this year compared to the same period in 2008 — not exactly a surprise with 10% unemployment. Yet the people who use coupons the most tend to be affluent, with incomes of $70,000 and up. What can explain this puzzling trend?

1. Rich folks have time on their hands and can clip and organize all those pesky pieces of paper.
2. Unbeknownst to any of us, the upper crust is addicted to reading the Women in Red, particularly one of our hottest topics: the famous Grocery Challenge.

What do you mean you’ve never heard of the Grocery Challenge? Dude! JLo reads it, OK?

OK, maybe not. The Grocery Challenge started as a discussion led primarily by reader “SuziQ,” who can bring a cartload of groceries to the register and pay next to nothing.

She quickly amassed a devoted following of discount-savvy shoppers, many of whom say they have cut hundreds from their monthly grocery bills. Some tips:

* Don’t fear the sale fliers. Search for coupons online at CouponMom.com for products you really use, and print them out at home.
* Get that key-ring thingie. Snag those random store discounts and bonus points. (At our local Price Chopper, our points get us discounts on gas at a nearby station.)
* Keep a notebook of prices and sales cycles. That way you’ll know what the rock-bottom sale price for certain items really is.
* Stock up when you see a BOGO (buy-one-get-one-free) item or a 10-for-$10 deal on a staple. Use coupons for further discounts.
* Learn to store. You can freeze a surprising number of items, including milk, butter, coffee, cheese, bread, rolls, tortillas and, if they’re prepared correctly, some fruits and vegetables.

For more ideas from superstar coupon clippers, see “Take a big bite out of grocery bills.” – MSN Money

]]> 4377 2009-09-30 21:46:13 2009-10-01 04:46:13 open open let-uncle-sam-help-you-buy-a-fridge publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6452#comments wfw:commentRSS http://zikkir.com/business/6452/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6452 syndication_item_hash adc0334be308a9c831ab0a7c4e42ab4d ‘Safe’ bonds may be hiding risk http://www.ethiopianreview.com/business/4376 Thu, 01 Oct 2009 04:48:12 +0000 http://zikkir.com/business/?p=6454 The Fed is keeping interest rates near zero to help the economy, but that’s really hurting savers. Many are flooding into bonds for better returns — without taking note of the risks.

The Federal Reserve’s policy of driving interest rates down toward zero may have kept the financial system alive. But it is killing savers and driving them to do desperate things.

Nearly 78% of taxable money market funds, the traditional parking place for savings, are offering 0.1% or less in annualized yield, according to Crane Data, a research company. On a $10,000 balance, that will earn you a maximum of 83 cents — yes, $0.83 — in monthly interest income. All told, these funds hold $1.3 trillion that will generate a return of just about zilch for the people who worked so hard to save it.

Is it any wonder that investors are barging into bonds? At Vanguard Group, more than $51 billion has cascaded into bond funds this year. “It’s been like Niagara Falls,” said Robert Auwaerter, Vanguard’s head of fixed-income investing. Industrywide, investors sank more than $40 billion into bond funds in August, an all-time high for a single month, and are on pace to break that record in September.

That might not be troubling if investors were merely taking baby steps out of money market funds, whose three-month average maturities minimize the danger of losses if interest rates rise. Remember, rising rates mean falling bond prices.

Last month, investors put twice as much money into intermediate-term and junk-bond funds as into short-term bond portfolios. As a result, they have exposed themselves to much greater risk from rising rates or falling credit quality. When interest rates go up, as in 1994, investors in longer-term bonds can get slaughtered.

“People feel they have to choose between the frying pan of zero yields and the fire of risk,” said Crane Data’s president, Peter G. Crane. “And they’re sick of the frying pan, so they’re jumping into the fire.”

Safer than stocks but riskier than before
Bonds are safer than stocks. But at today’s high prices and low yields, bonds are riskier than they were a few months ago.

The easiest way to tell is by looking at duration: the change in a bond’s market value when interest rates go up or down by 1 percentage point. If, for example, you own a bond with a duration of four, then its value will go up about 4% if interest rates fall by a percentage point; the bond will lose about 4% if rates rise by a point. For Treasury bonds, rising interest rates are the main form of risk; for corporate, municipal and other bonds, the financial soundness of the underlying assets raises another kind of risk.

Duration generally rises in tandem with bond prices, meaning that bonds are now primed to lose even more money if interest rates go up. This is, in short, a dangerous time to chase yield.

A year ago, according to Barclays Capital, the duration of seven- to 10-year Treasury securities was 7.0; now, it is 7.5. Similarly, the duration on municipal bonds has risen to 8.3 from 8.1. Assuming a $10,000 investment, you will lose roughly $750 on an intermediate-term Treasury note and about $830 on the average tax-free bond if rates rise by a percentage point, up from roughly $700 and $810, respectively, a year ago.

The rising durations reflect the huge gains in the bond market this year. Municipal bonds have returned 15%, corporate issues almost 17% and junk bonds at least 25%. “The easy money’s been made,” warns Vanguard’s Auwaerter. Treasury bonds, unlike corporates or municipals, can’t gain from an improving economy; if interest rates rise, Treasurys will get hammered.
Treasurys riskiest of all
The riskiest bonds of all right now are Treasurys. If the economy improves and rates rise, they will get hit hard. The longer the bond, the harder the hit.

Corporate bonds also will get hurt by rising rates. But an improving economy should narrow the spread between corporate bonds and Treasurys, which will lessen your losses.

Thus, if you can’t stand the pain of a money market fund that offers no gain, your best bet is a short-term fund that has significant holdings of corporate bonds. A sensible choice: Vanguard Short-Term Investment-Grade Fund (VFSTX), which yields 2.8% and has a duration of 1.9. Whatever you do, do not chase yield. – MSN Money and The Wall Street Journal

]]> 4376 2009-09-30 21:48:12 2009-10-01 04:48:12 open open %e2%80%98safe%e2%80%99-bonds-may-be-hiding-risk publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6454#comments wfw:commentRSS http://zikkir.com/business/6454/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6454 syndication_item_hash 89b43924404483c6acd98d383ce93060 The machine that’s ruining health care http://www.ethiopianreview.com/business/4375 Thu, 01 Oct 2009 04:53:10 +0000 http://zikkir.com/business/?p=6456 The US has more and better medical equipment than any other country. But reliance on technology like MRI scanners is a big reason why costs are so much higher here.

The main question of the national debate on health care has been who should pay for it, but lurking behind it is another one: Why does American health care cost so much in the first place? If you want an answer to that question, there’s no better place to start than the proliferation of the gleaming new magnetic resonance imaging machines filling U.S. hospitals.

According to the latest data, the United States has just over one MRI scanner for every 40,000 people. That number that may not sound high, but it means that we have more than three times as many devices per person as you will find in the United Kingdom or France, and almost four times as many as in Canada. Only Japan, an MRI-happy outlier, has more.

Obviously, the MRI is an extremely useful tool, giving doctors an ability to see inside the body and diagnose conditions that would otherwise require them to probe and cut into their patients’ bodies. It is also expensive to buy — at about $2 million — and expensive to operate. Worse, the machine is used aggressively for tests such as breast-cancer screening and yields a high rate of false positives that lead, in turn, to unnecessary surgeries.

Although MRI scanning has obvious advantages over invasive procedures, its use on the very sick is also not cost-free. When my own father was dying of cancer last year in one of New York’s best hospitals, he was subjected over a period of weeks to a battery of scans. While the healthy may think of MRIs as an almost entirely benign procedure, it is not at all the same for a patient whose spine is fractured in several places from bone marrow cancer, who cannot easily lie flat, and who is hallucinating from morphine. My father came down with pneumonia from complications involving sedation for what should have been a harmless scan. In these situations, even noninvasive, seemingly harmless procedures come with risks and difficulties.

The physician and writer Atul Gawande, in an extraordinary article in The New Yorker, detailed how doctors with a financial interest in expensive cardiac procedures have driven skyrocketing medical costs in McAllen, Texas.

Gawande demonstrates how the financial interests of doctors push patients into expensive operations of questionable usefulness. As Gawande shows, even for doctors who do not consciously seek to profit from pricy procedures, the emphasis on expensive treatments changes the norms of medical practice. And we can almost certainly add to this that it changes the expectations of patients, who come to believe that more treatment equates with better treatment.

The MRI data are a good proxy for the much more general tendency of U.S. physicians and patients to count on expensive technologies and operations.

In case after case, however, the confidence in this approach to medicine turns out to be misplaced. Whether it is the latest artificial hip, which then needs replacement itself, or an elective full body CT scan that exposes patients to radiation and leads to treatments of uncertain benefit, the reliance on technology leads to medicine that is more expensive without being better.

A keystone conflict in the current health care debate centers around the idea of “rationing.” Opponents of a government-run insurance program talk darkly of rationing health care, with the government refusing procedures because of their cost. Supporters answer that health care is already effectively rationed by a market that ensures that many people will not be able to afford the care they need. The assumption on both sides, though, is that however we choose to “ration” it, we want all the care we can afford. Yet we shouldn’t.

In the United States, we spend roughly 16% of our national income on health care; almost every other industrialized country gets by with less than 11%, for equally good (and usually better) care. What’s really striking about this gap is that most of the obvious explanations simply do not begin to account for it. U.S. health care workers get paid a lot, but as New York Times economics writer Catherine Rampell shows, we’re in the same ballpark, when it comes to medical pay, as Australia or the Netherlands. We rely more on specialists than, say, Canada or France, but no more so than many other countries.

Notably, while we pay more for health care than countries with national health insurance, the situation is really no different in countries with private insurance systems. The Netherlands also relies mainly on private health insurers, and its health care spending still comes in at 9.8% of national income. It’s not how you pay for health care that matters most here; it’s what you pay for.

One of the main reasons we now have a crisis in health insurance is that we have a crisis in health care costs that has been (as The Times’ Rampell beautifully charts) 30-plus years in the making. The proliferation of MRI scanners is an easy-to-quantify and telling example of the bigger trend.

Doctors and hospitals turn ever more readily to the latest equipment and technology, performing more procedures at greater cost without a corresponding improvement in care. Patients come to expect to be subjected to a growing battery of tests and operations. And instead of welcoming ideas about how to reverse this cycle, Americans worry about rationing.

Supporters of every variation of health care reform hope that their preferred solution — an unregulated market for health insurance, a government-run program along the lines of Medicare and everything in between — will not only make care more equitably available, but will rein in the cost. All the proposals focus on how to get folks insured without ever really grappling with the basic question of why the United States spends 60% more on health care then everyone else.

So it is that both patients and policymakers remain locked in the thinking that more expensive care is better, when our experience often shows the opposite to be the case. We pride ourselves on having more and better equipment than anyone else in the world, while we carefully avoid asking whether it is worth what we pay for it — or even if it is doing us any good in the first place. – MSN Money and The Big Money

]]> 4375 2009-09-30 21:53:10 2009-10-01 04:53:10 open open the-machine-that%e2%80%99s-ruining-health-care publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6456#comments wfw:commentRSS http://zikkir.com/business/6456/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6456 syndication_item_hash cf4cd075e916f81134557d4b1b2f4bee Tax-friendly places to retire http://www.ethiopianreview.com/business/4413 Thu, 01 Oct 2009 04:57:31 +0000 http://zikkir.com/business/?p=6458 Warmer weather and a lower cost of living may beckon in other parts of the country, but take a look at what your state and local taxes would be before pulling up stakes.

Maybe you’re thinking about relocating in retirement, in hopes of enjoying milder weather and lower expenses. Before you make a move, it pays to assess the overall tax burden of your future home.

No matter where you live, your federal taxes will be about the same. But you’d be amazed at how much your state and local tax burden may vary from one location to another. And if you itemize deductions, how much you pay — and deduct — in local property taxes could affect the bottom line of your federal return, too.

People searching for a retirement destination often just look at whether a state has an income tax. But higher sales and property taxes can “more than offset” the lack of a state income tax, says Tom Wetzel, president of the Retirement Living Information Center.

Seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming — have no state income tax. New Hampshire and Tennessee tax only dividend and interest income that exceeds certain limits.

But many of the remaining 41 states (and the District of Columbia) offer generous income tax breaks to retirees. If you qualify, moving to one of these retiree-friendly areas could be cheaper than relocating to a state with no income tax.

Plus, in tough economic times, states without a personal income tax have fewer sources of revenue and are more likely to raise property or sales taxes and other fees to shore up their budgets. State tax revenues plunged nearly 12% during the first three months of 2009, the sharpest decline on record, reports the Nelson A. Rockefeller Institute of Government. And it may take states years to make up the shortfalls.

Despite the dismal economy, there is one bright spot for retirees on the move: falling home prices.

“We see exceptional opportunities in some sought-after retirement destinations,” says Mary Lu Abbott, editor of Where to Retire magazine. If you thought locations such as Naples, Fla., Scottsdale, Ariz., and Hilton Head, S.C., were out of your price range, take a second look. Property taxes, however, have not been moving down as quickly.

Here’s a look at the other taxes you need to consider:
Pensions
Although most states that impose an income tax exempt at least a portion of pension income from taxation, they often treat public and private pensions differently.

No tax on pension income: Ten states — Alabama, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania — exclude all federal, military and in-state government pensions from taxation. But Kansas taxes public pensions from all other states.

No tax on retirement income: Pennsylvania and Mississippi, by contrast, exempt all retirement income — including distributions from IRAs and 401k plans.

Special breaks based on age or income:

* New Jersey allows residents 62 and older with incomes of $100,000 or less to exclude up to $20,000 of private-pension income from taxes.
* New York allows residents 59 1/2 and older to exclude up to $20,000 of private or out-of-state public pensions from taxes, regardless of their total income.
* In Michigan, individuals can exclude up to $43,440 of private-pension income ($86,880 for married couples) from state taxes in 2009.

Steer clear: Three states are particularly tough on retirees. Not only do they fully tax most pensions and other retirement income, they also have high top tax brackets: California (9.55% on income less than $1 million), Rhode Island (9.9%) and Vermont (9.5%).

Connecticut and Nebraska also fully tax retirement income, with top rates of 5% and 6.84%, respectively.
Social Security benefits
Depending on your income, you may be required to include up to 85% of your Social Security benefits in your taxable income when filing your federal return. But in recent years, many states have been moving away from taxing Social Security benefits.

In addition to the nine states that lack a broad-based individual income tax, 27 states and the District of Columbia do not tax Social Security.

No Social Security tax: Alabama, Arizona, Arkansas, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia and Wisconsin.

Some Social Security tax: Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.

But Missouri will phase out its Social Security tax by 2012, and Iowa will gradually phase out its Social Security tax by 2014. Kansas residents can now exclude Social Security income from their taxes if their adjusted gross income is less than $75,000, regardless of whether they are single or married.

Seniors living in Colorado, New Mexico and Utah must add back the portion of Social Security benefits not taxed by the federal government to calculate their eligibility for certain state tax breaks.
Sales taxes
Don’t forget to include state and local sales taxes in your personal budget analysis. Some states exempt food and medicine; others tax every dime you spend.

No state sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon (although Oregon is considering adding one).

High state sales tax: California’s newly increased sales tax of 8.25% is the highest statewide sales tax in the nation. Five other states — Indiana, Mississippi, New Jersey, Rhode Island and Tennessee — each have a state sales tax of 7%.

But the retail-tax pain doesn’t always stop at the state level. Most states allow cities and counties to assess their own sales tax (including Alaska, which has no state sales tax). For example, Chicago imposes a 10.25% combined sales tax, the highest of any major U.S. city. Combined rates can reach 10% in cities in Alabama, Arizona and California.

In 2008, more than 500 U.S. cities either increased their sales-tax rate or initiated a new sales tax, according to the annual sales-tax-rate study by tax-services company Vertex, in Berwyn, Pa. “We’re already hearing discussions about changes in state taxes to come this year, and we expect the average state sales-tax rate to continue to trend modestly upward for a fourth consecutive year,” says Vertex’s John Minassian.

No local sales tax: Only Connecticut, Kentucky and Maine do not allow municipalities to impose their own sales tax on top of state levies.

* Map: Compare sales, ’sin’ and gas taxes around the US

Property taxes
Property taxes are a major cost factor, particularly for retirees living on fixed incomes. But many local jurisdictions offer property-tax breaks to full-time residents, some based on age alone and others linked to income. Tax rates vary significantly from state to state and among cities in the same state.

For example, a retired couple with an annual income of $90,000 and a home worth $525,000 would pay about $11,800 in total state taxes if they lived in the upscale community of Boca Raton on the east coast of Florida. But if they lived in the ritzy enclave of Naples on the state’s Gulf Coast, they’d pay about $4,000 less, according to “America’s Best Low-Tax Retirement Towns.”

Lowest median real-estate taxes (from lowest to highest), based on data from a 2007 Census Bureau survey and Tax Foundation calculations: Louisiana, Alabama, West Virginia, Mississippi and Arkansas.

Highest median real-estate taxes (from highest to lowest): New Jersey, New Hampshire, Connecticut, New York and Rhode Island.

“America’s Best Low-Tax Retirement Towns” is a good starting point if you’re trying to determine the financial implications of moving or staying put. It rates the total tax burden for more than 200 cities, broken down by different income levels and home values. – MSN Money and Kiplinger

]]> 4413 2009-09-30 21:57:31 2009-10-01 04:57:31 open open tax-friendly-places-to-retire publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6458#comments wfw:commentRSS http://zikkir.com/business/6458/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6458 syndication_item_hash bd28ce839a518f11dd82a5ca24ad3070 Don’t invest in asset protection insurance http://www.ethiopianreview.com/business/4412 Thu, 01 Oct 2009 04:59:55 +0000 http://zikkir.com/business/?p=6460 It’s meant to ensure that your heirs aren’t left with a busted investment portfolio. But there are better ways to reduce your risk.

Some things are better in theory than in reality. Asset protection insurance, which supposedly protects your investments if you die at a time when your investment portfolio has declined in value, falls into this category.

You know you have to take risks if you want long-term investment returns that exceed those of money market funds or bonds. In other words, you have to put your money in nonguaranteed investments such as individual stocks and mutual funds.

The problem is that many people get queasy watching the value of their portfolios expand and contract like an accordion. And in the recent downturn, that queasiness has turned to abject fear for many investors.
Playing off fears
Such a climate creates fertile ground for questionable products as salespeople play off that fear. When there is a perceived need for insurance, products to meet that need aren’t far behind.

Enter asset protection insurance, which is nice in theory. It guarantees that if your investment account doesn’t do well, your beneficiaries get will at least the amount of money you originally invested. The insurance company will even kick in funds equal to a small annual interest rate on your account, usually 5% a year.

Here’s the reality:

* It’s too expensive. The cost works out to about $30 to $50 per $10,000 insured in your portfolio. So if you want a policy to insure a $100,000 investment portfolio, you’ll fork over $300 a year in insurance payments. That takes a serious bite out of your return.

* It’s a low-risk game for the insurer. If you think about it, the chances of your losing your entire portfolio to bad investments are pretty small. If you had a $100,000 portfolio and it dropped 20% over the last two years, it’s now worth $80,000. If you died tomorrow, your asset protection insurance would pay the $20,000 difference, plus a few extra thousand for interest. But despite market volatility, investments tend to increase in value over the long term. If you’re planning to keep your investments for 10 years and you aren’t a day trader or investing in options, you should be fine.

* It pays only the amount of money that you lost. Asset protection insurance pays only for the difference between your initial investment (or cost basis) and how much it has fallen in value.

* You can get a better deal purchasing term life insurance. Term insurance can accomplish essentially the same thing as asset protection insurance at a much lower premium rate. Let’s go back to that imaginary $100,000 portfolio. You’ve determined that for your family to survive financially in case of your death, you need a $500,000 term policy for the next 20 years. (Use MSN Money’s Life Insurance Needs Estimator for your own situation). If you increase the term policy to $600,000 to include your portfolio, you’ll probably increase your yearly premium by $100 to $150. That’s less than half of what it would cost to purchase the asset protection insurance.

Adjust your portfolio instead
Only a few insurers offer this type of coverage. That may be because asset protection insurance seems designed for the benefit of the salesperson, not the customer.

It not only offers a quick commission, but may help entice an otherwise reluctant person to invest in stocks. Can’t you just hear it now? “I have some terrific stocks and mutual funds that are just right for you, and I can really pick winners, but just in case they go down, I can get you an insurance policy against the loss to your heirs. It’s a win-win situation.”

Richard Babson, chairman and president of Babson United, a money-management firm in Watertown, Mass., calls asset protection insurance a “very interesting marketing technique.” He says if people are nervous about investing in higher-risk stocks, “they need to readjust their portfolio, not buy insurance.” – MSN Money

]]> 4412 2009-09-30 21:59:55 2009-10-01 04:59:55 open open don%e2%80%99t-invest-in-asset-protection-insurance publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6460#comments wfw:commentRSS http://zikkir.com/business/6460/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6460 syndication_item_hash 9f6fea2d67abc91778eff105e664823b Spot unethical sales practices http://www.ethiopianreview.com/business/4411 Thu, 01 Oct 2009 05:03:12 +0000 http://zikkir.com/business/?p=6462 The era of rampant abuse in the life insurance industry may be over, but policyholders still need to be on guard against fraud and other shady tactics.

As the old saying goes, people don’t buy life insurance, it’s sold. That’s not completely true, since most people really do need life insurance to protect the security of their loved ones. But it’s in the type of life insurance and how much you buy that the adage rings true. Below are some of the things to watch out for when working with insurance agents. Keep in mind that most insurance agents are helpful and professional and that those who engage unethical practices are very much in the minority.

Consumers had very good reason to fear some agents and some companies in the 1980s and early ’90s because of rampant fraud and abuse. But now the tables have turned and the insurance companies are the ones running scared.

Life insurance as an investment
In the late 1970s, insurance regulatory changes and high interest rates drove companies to develop new “investment-related” products such as universal life insurance. Agents started to sell life insurance as an investment. Policyholders began to consider permanent life insurance products as part of their investment portfolios.

Additionally, the advent of computer software led some companies to aggressively distribute insurance illustration software based on questionable assumptions, such as interest rates of up to 13% or 14% throughout the policy’s life. Other companies figured out a way to override the maximum assumed interest rate and plug in their own numbers of as much as 19%. If the software would not allow this override, an agent sometimes would pay to have a simple spreadsheet program of his own developed for use in marketing permanent life insurance policies.

The ‘vanishing’ premium
With these assumed high interest rates, the projections showed that the premiums would “vanish” in as little as four or five years. Normally premiums vanish because the dividends (if it’s a whole life policy) or interest (in the case of universal life) are enough to keep the policy in force by paying the premiums from the cash buildup.

This is especially true for universal life insurance, because unlike whole life insurance (which has a fixed premium), a person could pay less than the recommended premium — sometimes even skipping a year.

Many agents aggressively marketed this vanishing premium (or “premium offset”) method of paying for insurance.

There is nothing wrong with the vanishing premium concept, provided that a reasonable interest rate of 5% to 6% is used in the illustration as the assumed dividend rate. Under this analysis, the premium might vanish after 15 years or so.

But because the interest rate assumptions were unreasonable, what happened was disastrous: As actual interest rates dropped, premiums did not vanish. Instead, they continued to increase for a decade or longer.

Even worse, some policyholders found that their vanishing premiums had suddenly “reappeared,” and, in some cases, those premiums were more than the policyholders could afford.

‘Churned’ policies
Additionally, some agents “churned” policies. This means they persuaded policyholders with old life insurance policies containing large cash values to buy replacement policies, thereby earning the agent hefty commissions on the new sales. These new policies usually had a much higher death benefit, and the sales illustrations (using unrealistically high interest-rate assumptions) usually showed little or no additional premium payments required, because the cash values from the old policies were supposed to be enough to fully fund the new ones.

It looked like a great deal to the policyholders — higher death benefits with little or no out-of-pocket expense — but those new commissions and other new policy expenses took a big bite out of the built-up cash values. And, of course, interest rates dropped. The result? Many policyholders were faced with unexpected premium payments just to keep the policies in force. They had to pay up — and keep on paying — or let the policies lapse and lose the death benefit altogether.

The churning system has since taken on a new tack. Consumers complain of agents who convinced them to buy whole life insurance policies, which rewarded the agents with fat commissions. But after a few years, the commissions dwindled. So what did these agents do? They convinced their customers to borrow money from their policies in order to purchase variable life annuities.

Now, annuities do offer a guaranteed income stream in your later years, but borrowing money from another policy is horrible money management. You will not come out ahead financially. (See “Beware of the annuity salesman’s scare tactics.”)

Lessons learned
The good news that comes out of issues like these is that the exposure reinvigorates the rest of the industry to sell in a more ethical manner and forces life insurance companies to supervise and train their agents better.

Supervision is the key, as companies must take responsibility for what their agents show to prospective policyholders. Many companies now require that the sales illustrations be attached to policy applications.

Most of us do need life insurance of some kind, and a good life insurance agent can be as important as a good financial planner. Some of the older life insurance companies have been around for more than a hundred years, and most sell insurance for what it is –protection for your survivors against the financial hardship of your death. And if you buy permanent insurance with cash values building up, there’s the added benefit of a built-in savings account. – MSN Money

]]> 4411 2009-09-30 22:03:12 2009-10-01 05:03:12 open open spot-unethical-sales-practices publish 0 0 post wfw:commentRSS http://zikkir.com/business/6462/feed rss:comments http://zikkir.com/business/6462#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6462 syndication_item_hash 0ab6f6220ef01da33bbe30dbf0b0201c Be wary of offers to ‘replace’ your current policy http://www.ethiopianreview.com/business/4416 Thu, 01 Oct 2009 06:55:14 +0000 http://zikkir.com/business/?p=6464 Here’s when to get a new life insurance policy and when you’re better off with what you’ve got.

When it comes to “replacement” life insurance policies, the best advice is: Don’t do it.

The concept sounds simple enough, but there’s a kicker. Every time a life insurance policy is replaced (or sold by an agent or financial planner who gets a commission on that sale), there’s a cost. And that cost comes out of the policyholder’s pocket.
A sorry history
Replacement became a huge problem, and a source of embarrassment, in the insurance industry in the 1970s and ’80s.

Several relatively new and aggressive life insurance companies produced payout projections beating anything the traditional stalwarts were offering. But it was all a mirage. Many of those companies were later found to be insolvent and taken over by state insurance commissions, leaving policyholders without insurance or a payout.

Partly in reaction to this debacle, most life insurance applications now include a question asking if the new policy is replacing an old one. If so, the agent must provide a detailed explanation for the switch.

Additionally, most states now require life insurance agents to file “notifications of replacement” with the relevant state insurance commission and comply with various additional regulations.

The cost of replacing your life insurance
You replace other investments all the time, so why not life insurance? Because those other investments don’t have the upfront costs insurance charges.

There are underwriting expenses, marketing and administrative fees, sales commissions — the list goes on. Those upfront fees often exceed the premium you’ve got to pay as well.

Replacing term insurance doesn’t matter as much, because you’re generally just buying the cheapest policy for the time period needed. The bigger problem is with permanent insurance, because the agent has the most to gain (the commissions are usually much higher than for term insurance) and the consumer has the most to lose (paying those commissions).

Here’s how it works: You meet with your life insurance agent or financial planner. He tells you the policy you bought three years ago just isn’t right for you anymore, and there’s a new version that’s just perfect. You buy the new policy because it looks great on paper. It’s like going back to the starting line, though, because you have to pay the start-up costs all over again.

That means it will be that much longer before your cash value equals the premiums you’ve paid. Unless you’re buying a new no-load (commission-free) policy, you’re essentially paying double on the commissions.

Higher commissions for your agent
You may wonder why it matters, if the same agent who sold you the first policy is the one selling you the second. The agent’s already getting a commission off the first policy, right?

The difference is in the amount. The commission is much higher during the first few years of a policy. A permanent insurance policy might pay 50% of the first year’s premium as commission, 20% in the second year and 5% annually for the next six years. The total paid in commissions often exceeds the cost of the first year of your premium.

If you balk at paying these commissions and instead go to a fee-only financial planner, compare the cost. The planner’s fee is still money you’re paying to get the insurance advice.
When it makes sense to replace a policy
“Replacing an existing life insurance policy with a new one generally is not in the policyholder’s best interest,” advises The Society of Financial Service Professionals. But there are circumstances where it makes sense to replace an old policy with a new one.

Here are some examples for term life insurance:

* Term insurance rates are lower now than they were several years ago, so your new premium may be lower. (See “Now’ s time to buy term life insurance.”)

* Companies vary widely in price for the same amount of insurance for one person, and you may not have gotten the best deal the first time around.

* A new term life insurance policy may allow you to lock in a longer guaranteed premium.

* Your needs may have changed. Perhaps when you purchased the old policy, you thought you needed it for five years, but now you need it for 15 years. The new 15-year guaranteed premium may be cheaper than that of your old policy. Even within the same company, rates may have dropped, and new annually renewable term policies may be less expensive than older equivalent policies.

The benefits of replacing a permanent life insurance policy are less obvious:

* Your needs have changed (or maybe you were sold the wrong policy in the first place), and you need term instead of permanent insurance because you need the death benefit for only 10 years.

* You purchased a permanent insurance policy that you did not understand, and you find that you have a variable life policy, when what you really wanted was a whole life policy where there are guaranteed cash values and you don’t have to make any investment decisions.

* You want to wipe out a large loan on the old policy by using its cash value.

* You purchased a permanent life insurance policy from a company that’s not financially sound.

* You purchased a policy in the 1970s or before, and the guaranteed returns of 2% to 3% are so low that replacing them with new ones actually does make sense.

* You’re in the first three years of a permanent insurance policy for which you paid commissions and determine you’d be better off starting over with a new low-load, no-commission policy.

Comparing old and new
When comparing an existing permanent insurance policy with a new one, your agent must get an “in-force ledger” (detailing how your existing policy is expected to perform from now on) and compare the cash values and death benefits, year for year, with the new policy.

You need to compare calendar years, not years of the policy. If you have owned a policy for five years, do not compare the fifth-year values of the old policy with the fifth-year values of the new policy. Unfortunately, this is a sales technique that has often been used to persuade life insurance owners to switch policies.
Replacement analysis
Replacement is a complex issue, and it may seem impossible to tell when it’s right for you. The Society of Financial Service Professionals developed a replacement questionnaire to help life insurance agents and financial planners determine whether replacement is a good idea.

This is a guide for the salesperson, but it’s also useful for fee-only planners. The replacement questionnaire is a comprehensive analysis of the existing and proposed policies. Unless it’s obvious why a replacement is needed, ask your agent or planner to complete the questionnaire based on new illustrations for the current and proposed policies, and then to show all three documents to you.

Showing their true colors
The analysis can take several hours, so if someone is just trying to make a quick buck, that should end the conversation fast. Also, you may not want to pay hourly fees to a fee-only financial planner to do the analysis. And if a salesperson says, “You don’t need to go through all of that,” you should leave immediately.

The final issue to consider is whether your old policy has important tax-savings provisions that have been grandfathered in from any tax changes in subsequent years. The replacement questionnaire lists nine such grandfathered provisions. The changes could be worth thousands of dollars to you.

The insurance industry has come a long way from turning a blind eye to the replacement excesses of the 1960s, ’70s and ’80s. Most say it’s probably not in the best interest of the client to replace an existing policy. Your best bet is to heed the words of the Society of Financial Service Professionals — unless there is clear proof that a replacement policy is a better deal, stick with what you’ve got. – MSN Money

]]> 4416 2009-09-30 23:55:14 2009-10-01 06:55:14 open open be-wary-of-offers-to-%e2%80%98replace%e2%80%99-your-current-policy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6464#comments wfw:commentRSS http://zikkir.com/business/6464/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6464 syndication_item_hash 6db123ca3fd979101bfe64b3278d6adf Top boating dangers? Fraud and theft http://www.ethiopianreview.com/business/4415 Thu, 01 Oct 2009 06:59:26 +0000 http://zikkir.com/business/?p=6466 Here’s how to avoid buying a boat that’s been ripped off, and how to guard against thieves.

A pleasure boat often is glibly described as “a hole in the water you pour money into” — a basic truth regarding maintenance and repair that can become much worse if you don’t keep your investment safe. Boats are vulnerable to a number of hazards, such as fire, natural disaster and accidents.

But those dangers are minor compared with theft.

According to the National Insurance Crime Bureau, around 1,000 watercraft are stolen each month in the United States. Florida and California are the leaders in boat thefts.

And it’s usually not big, high-ticket boats that thieves set their sights on. In fact, says Frank Scafidi, spokesman for the crime bureau, most stolen craft are less than 20 feet in length.

“People should look after their watercraft as they would their car,” says Scafidi. But often that’s easier said than done. Many people spend a boatload of money on a boat and then park it where they don’t see it for days, weeks or months on end.

It may be impossible to keep your boat totally free of danger, but you can minimize the risks by taking precautions when buying and maintaining a boat.
You get what you pay for
First, make sure you’re not buying a stolen boat. States have their own boating agencies and keep track of their own boat data, so it can be difficult to track a stolen boat that has crossed state lines. However, there are some red flags you can watch for.

Any boat that was manufactured in the U.S. or imported into the U.S. since 1972 must have a unique hull identification number, or HIN, permanently affixed to it. Similar to a vehicle identification number, this 12-digit number serves to identify the craft by its manufacturer’s identification code, the boat’s serial number, the date the boat was certified and its model year. Even if you build your own boat, you’ll have to get a HIN from your state boating agency.

Unfortunately, there’s no national database of HINs, making it nearly impossible to track previous owners through the number alone. You should, however, make sure the boat’s number matches the number on the registration. And if the HIN on the boat looks like it has been altered, or if any digits are obscured even partially, stay away.

You can use the pay service Boatfax, the watercraft equivalent of Carfax, to check a craft’s history for theft or damage reports.

Before buying a boat, ask to see as much paperwork as possible from the current owner, including registration certificates and repair invoices. You want to see a history of ownership. If a seller has had a boat for only a couple of months, there’s cause for concern. Also give the state titling agency a call to see if the HIN and registration number match the seller’s name and address. If the seller doesn’t have the title or ownership papers, don’t buy the boat.

Even though all states require boats to be registered before being operated, some states, such as Alabama, don’t require titling before registration, which makes it easier for thieves to get around the title issue.
Protect your investment
Once you get your boat, consider insuring it. Although few, if any, states require boats to be insured, unlike automobiles, it’s a good idea if you have anything more than a minimal investment in it. However, if you have a loan with the boat as collateral, the lender usually will require you to keep the boat insured.

If you have a small sailboat, you might be able to get limited coverage for property damage under your homeowners policy, but the protection likely extends only to the boat itself and does not cover fishing or diving gear, or services such as towing and fuel-spill cleanups. If you want liability coverage, or if you have a powerboat that is worth a great deal of money, you’ll need a separate boat insurance policy.

The cost of insuring your boat can run the gamut, as it takes into account such factors as the boat owner’s experience, the type of boat being insured, its value, where it’s stored, where it’s used and how it’s used. For example, insurance will be higher if you live in Florida than if you live on the Great Lakes, because the boating season is longer in Florida and the risk of hurricanes and theft is greater.

You can get boat insurance from most general insurance companies, but it’s a good idea to talk to a marine insurance agent, says Bill Glass, director of marketing for the National Boat Owners Association. You should also consider dealing with an independent agent who can offer you insurance options, rather than someone who sells insurance for just one company.

One of the most important decisions is choosing “agreed value” or “cash value.” If your boat is destroyed and you have an agreed-value policy, the insurance company will pay you that amount. However, if you have cash value, the insurance company will pay the boat’s current estimated value, so the amount of money you’re entitled to will decrease as the boat depreciates. An agreed-value policy costs more, but the extra money is worth it, should you want to replace your boat.

Similar in many ways to auto insurance, boat policies usually include:

* Medical payments coverage if you or a passenger is injured.

* Liability protection if you’re at fault and injure yourself or someone else in a boating accident, or if you accidentally collide with someone else’s boat.

* Physical damage or loss, regardless of who is at fault, in such instances as a collision with another boat or object, a damaging storm or a theft. This type of protection might also cover you for emergency repair services, towing, and damage to boating equipment, radios or sports equipment. Other physical-damage provisions can cover damage while your boat is on the road, stored or parked in your yard.

To protect yourself if you’re in an accident caused by someone who does not have boat insurance, you can also purchase uninsured-boater coverage, which will pick up whatever that person’s insurance coverage would have paid for. Fuel-spill liability coverage will pay costs associated with fuel spills that unintentionally lead to bodily injury or property damage.

As with other types of insurance, boat insurance makes use of deductibles. The higher the deductible you take, the lower your insurance premium will be. Typical boat-policy deductibles, according to the Insurance Information Institute, are $250 for property damage, $500 for theft and $1,000 for medical payments. Discounts often are available for taking a boat-safety course, upgrading safety items on board or insuring a new boat.
Keeping it safe
Once it’s insured, safeguard your boat by following these theft-prevention tips:

* Be careful where you store the boat. “Check out the storage place, talk to the other owners that are there and look at the facilities compared to other facilities in the area,” says Glass. Your best bet is a locked garage, secured boat storage yard or a well-lighted, fenced area. Most stolen boats are on trailers and are swiped from driveways, streets and motel parking lots.

* Use a trailer-hitch lock if your boat is stored on a trailer.

* Chain and lock outboard motors to the boat.

* Disable the ignition system with a kill switch or by removing the plug wires or distributor cap on an inboard.

* Use a specially designed boat alarm system.

* Lock it up and remove the keys when not in use.

Other things you can do to protect your boat: Secure it with a locked, steel cable, and always lock its cabins, doors and windows when you’re not using it. Also, get an alarm system and use it when you’re not on board. And when you know you’re not going to use the boat for a long period of time, you can also shut off fuel lines or remove the battery to deter thieves.

A boat can provide hours of pleasure and can be one of the most enjoyable investments you can make. By taking a few precautions, you can enjoy that investment with as little long-term impact on your wallet as possible. – MSN Money and Bankrate.com

]]> 4415 2009-09-30 23:59:26 2009-10-01 06:59:26 open open top-boating-dangers-fraud-and-theft publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6466#comments wfw:commentRSS http://zikkir.com/business/6466/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6466 syndication_item_hash 5f0a47e2514cae4f68776d046c7edf9c When those vanishing premiums don’t vanish http://www.ethiopianreview.com/business/4414 Thu, 01 Oct 2009 07:03:13 +0000 http://zikkir.com/business/?p=6468 It’s time to take action if you bought permanent life insurance and expected the premium would disappear.

Permanent life insurance is a lot tougher to sell than the much cheaper term life. Agents often use the “vanishing premium” concept as a way to make permanent insurance more palatable to potential clients.

“These premiums may look high today,” an agent might say, “but they’ll disappear after a few years and the policy will pay for itself.”

Such sales pitches sold permanent life insurance policies like hotcakes in the 1980s and ’90s, but in many cases the vanishing premiums failed to disappear. As a result, insurers were besieged by class-action lawsuits.

Yet agents continue to sell products based on very unrealistic rates of return.
Vanishing premiums aren’t dishonest
Technically, there’s nothing wrong or dishonest about the vanishing premium technique. It’s a simple concept: The cash surplus from premiums paid in the early years earns enough in later years to pay the premiums. The policy becomes “self-supporting” at that point.

There’s only a problem if the assumed rate of return is unrealistically high. That’s when your vanishing life insurance premium doesn’t vanish as expected.

For example, suppose you had purchased a permanent life insurance policy in 1994 with the understanding that you would not owe premiums after the tenth year. You might have received an illustration showing a 10% rate of interest and your premiums vanishing in 2004.

But interest rates have dropped substantially since 1994, meaning that the dividend rate (for whole life) and interest rate (for universal life) have dropped substantially, as well. Instead of 10%, your policy may be earning as little as 6% or even less, depending upon the company and type of policy you purchased. So instead of paying premiums for 10 years, you may be 15 years into the policy and still paying — and you could keep on paying for years to come.

Take action now
If you bought a policy assuming your premiums would vanish at a certain point, chances are you will have to pay longer than you expected. What should you do?

First, contact your insurance company to find out if there is a class-action lawsuit pending or that has been settled. You should have been notified of the suit and your options, but it doesn’t hurt to check. You can also call your state insurance department to get a list of the companies targeted in class-action suits.

Second, call your agent or insurance company and ask them to provide “in-force illustrations” that assume you do one of the following four actions, with the first option clearly your best:
1. Continue to pay premiums until the premium vanishes.
When you receive the illustrations, look at what year the premium vanishes under current rates and 2 percentage points lower. Could you afford to keep paying for those additional years?

If not, consider the one of these three additional options.
2. Borrow from cash value to pay the premiums.
You can always borrow the premium from the cash value, if there is enough, at an interest rate that is usually well below 10%. This way, you keep the death benefit (although your policy loan is subtracted from it) and the cash value continues to increase each year.

* Advantage: You can keep the policy in force with little or no out-of-pocket cost.

* Disadvantage: If you continue borrowing to pay the premiums, all of your cash value eventually will be used up in paying premiums. Your policy will lapse and you will end up with no life insurance coverage at all.

* Questions to ask: How long will the insurance stay in force, assuming current rates and 2 percentage points less? Will you need insurance coverage beyond that point? Would you prefer to keep paying for this policy or try to buy a new one? (Consider your health before you assume you can get a new policy.)

3. Change the policy to extended term.
With this technique, your permanent life insurance policy becomes a term insurance policy, and the cash value is slowly used up over time to pay the term insurance premiums. The more cash value you have, the longer you can keep the policy in force. Another factor is your age; the younger you are, the lower your term insurance premiums will be.

* Advantage: You’ll have insurance for more years than if you use up the cash value to keep the permanent policy in force because the term life premiums probably are lower than those for the permanent insurance.

* Disadvantage: At some point, the extended term coverage will lapse and you will end up with no death benefit. Any premiums you paid on the permanent policy are essentially wasted.

* Questions to ask: What year does the coverage lapse under current rates and 2 percentage points lower? Will you need insurance beyond that point, keeping your health and age in mind?

4. Rewrite the policy with a lower death benefit.
The insurance company takes your existing permanent life insurance policy and uses the cash value in it to buy a “paid-up” policy instead. A paid-up policy is one that is guaranteed to remain in force for your lifetime, and it guarantees that you will never owe premiums on it. It differs from a “self-supporting” policy in that self-supporting policies don’t guarantee that premiums will never be due on them.

* Advantage: You have life insurance coverage without any out-of-pocket cost.

* Disadvantage: You’re going to end up with a substantially lower death benefit than you currently have.

* Questions to ask: What is the death benefit under current rates and 2 percentage points lower? Is the amount of insurance under the paid-up policy enough for your needs, and if not, how expensive would it be to buy additional term insurance? – MSN Money

]]> 4414 2009-10-01 00:03:13 2009-10-01 07:03:13 open open when-those-vanishing-premiums-don%e2%80%99t-vanish publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6468#comments wfw:commentRSS http://zikkir.com/business/6468/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6468 syndication_item_hash 950addb7bed6d4d8fcdddcd5f5405273 Your teen’s credit is your problem http://www.ethiopianreview.com/business/4429 Thu, 01 Oct 2009 07:09:00 +0000 http://zikkir.com/business/?p=6470 Credit card reform means that many people under 21 will have trouble qualifying for credit on their own. You could co-sign, but make sure you know the risks.

As if parents of teenagers didn’t have enough tough decisions to make, another one is coming: Should you get your kid a credit card?

Starting in February, people under age 21 likely will have a much harder time getting approved for plastic as reforms enacted by the Credit Card Accountability, Responsibility and Disclosure Act of 2009 go into effect. Applicants under 21 will have to prove they have “independent means” to repay their debts — that is, jobs — or they’ll have to get adults to co-sign for their cards.

I’m a fan of this change, which I think was long overdue, as I argued in “Teens need debt driver’s licenses.” People under 21 are often abominably bad at managing their credit and frequently take on potentially life-altering amounts of debt without understanding the consequences.

Need proof? Just check out a recent Sallie Mae study that reports on undergraduates’ use of credit. Of the 84% of college students who have at least one credit card:

* A whopping 82% carry balances.
* The median debt owed has grown 74% since 2004.
* Eighty-four percent of the students said they needed more education on financial-management topics.

Clearly, college students aren’t getting the message that carrying credit card debt is stupid. Maybe that’s because too many of their parents haven’t learned that lesson or at least have failed to communicate it.
How parents can help
“What a horrible job we as parents have done teaching financial management,” said Bill Hardekopf, the CEO of credit card comparison site LowCards.com, after reviewing the Sallie Mae statistics. “(Students) share some of the blame, but to me it’s an indictment of us as parents.”

I’d say credit card companies get some blame, too, for making it so easy for college kids without jobs to get card after card after card. (Half of college students have four or more credit card accounts.)

Reform puts the ball squarely back in the parents’ court. But do you co-sign and put your own credit at risk? Or do you refuse, perhaps leaving your child at a disadvantage in the post-college world when he or she will need good credit to get an apartment or a car loan?

The answer depends both you and your child. As with so much else in parenting, what works for one family might be a disaster for another.

Here’s what both you and your teenager need to know:

* Good credit is essential these days. A solid credit history and good credit scores will do more than help someone get a decent rate on a car loan or mortgage. Landlords, employers and insurance companies all use credit histories to evaluate applicants.
* Mistakes will haunt you. A single skipped credit card payment can knock up to 100 points off your scores and can stay on your credit reports for seven years (although the impact of the delinquency will fade over time if you get your financial act together). The more times you’re late, the greater the accumulated damage.
* Credit cards should be paid off in full. Credit cards require you to pay only a fraction of what you owe every month, but only suckers play that game. Carrying a balance means you incur unnecessary finance charges and leaves you at the mercy of credit card issuers who can change the rules with little notice.
* You shouldn’t use more than a fraction of your limit. Even if you’re paying in full, you should be careful not to use much of your available credit at any point during the month, because coming anywhere close to your limit can hurt your scores. Using half or less of a credit limit is good; 30% or less is better; 10% or less is best.
* Co-signing puts both parties’ credit on the line. Creditors hold both parties accountable for the debt, which means a skipped payment will trash both parties’ credit scores.

Co-signing might help student learn
Hardekopf wanted his kids to learn these lessons before they went to college. So he and his wife co-signed for credit cards for their three children while they were still in high school. (Two are now college graduates, and the third is an undergraduate.)

The kids were responsible for keeping track of their balances and paying off the bills in full and on time, under their parents’ watchful eyes.

“We talked them through what a credit limit is, what is a balance, what an APR is and if you miss a payment how expensive it is,” Hardekopf said. “They were under our roof so we could train them and make sure they didn’t make mistakes.”

Actually, the kids did make mistakes — and learned from them. Hardekopf said the older two each sent in payments a few days past the due dates and were shocked by the late fees and finance charges they had to pay. That motivated them to get future payments in on time, and he said both graduated with good credit scores.

Hardekopf said the arrangement has worked out well for his family, but another credit card expert wasn’t comfortable co-signing for a card when his son went off to college this fall.
The case for debit cards
Curtis Arnold, the founder of CardRatings.com and author of “How You Can Profit From Credit Cards,” started his son out with a checking account and debit card, which worked all right — for a while.

“He used a debit card his whole senior year, but this summer he got lax to the point where he got hit with a few overdrafts,” Arnold said. “So he’s gone one step back. We’ve got him on an old-fashioned ATM card, and he can only get cash.”

Arnold believes strongly that teenagers need experience using plastic but that they need to work their way up to credit cards after responsibly using debit cards. He’s not sure any college freshman, new to handling expenses on his or her own, is quite ready for a credit card.

And he’s certainly not willing to put his good credit in a teenager’s hands.

“I just don’t think I’d be comfortable co-signing,” Curtis said. “And I don’t know if most parents would take the time to (monitor) the account to make sure it’s being used responsibly.”

Curtis did, however, give his son one leg up in establishing a credit history: He added the boy as an authorized user on one of his credit cards. Adding someone as an authorized user can help them build a credit history without giving them full access to the account.

Another option for the under-21 set is a secured credit card. These cards require a deposit to open — one that’s typically equal to the credit limit — and may not require a co-signature even after the new rules kick in. (The deposit may be proof enough the borrower can pay the debt.) Borrowers need to choose a card carefully, however, because some charge egregious fees; look for cards with set-up and other initial fees under $100.

If you co-sign (or if you don’t)
If you do decide to co-sign:

* Sign up for online access and alerts. You should be checking in on the account at least monthly and signing up for e-mail or text alerts that tell you when your progeny is getting close to the limit or to missing a payment.
* Educate your kid on the basics. Explain how credit limits, due dates and late fees work and how important it is to pay on time and in full each month.
* Discuss your expectations. Talk about what expenses can go on the card (books, yes; midnight pizza runs, no) and show your student how every charge is posted to the account within hours, so there’s no question of hiding spending.
* Be prepared to close the account. If your kid maxes out the card or pays late more than once, he or she isn’t ready for a card. Shut it down before real damage is done.

If you decide not to co-sign:

* Have the credit talk anyway. College students need to understand the importance of good credit and how to responsibly use a credit card just in case they manage to qualify for plastic on their own.
* Consider adding your student as an authorized user. If you have good credit, you can share some of it by making your son or daughter an authorized user on one or more of your credit cards. Your history with the account is typically exported to the authorized user’s credit reports, but you don’t have to give him or her a card or permission to use the account.

Finally, if your child already has a credit card:

* Discuss the importance of paying off the balance in full. Explain how high interest rates can double the cost of items purchased with a credit card.
* Explain why he or she should use cards lightly. Maxing out cards will hurt your student’s credit, even if he or she pays the balance in full the day the statement arrives.

* Help your child make a plan to pay off the debt. Don’t let him or her fall into the delusion that the debt can wait until after graduation; by then the balances could be crushingly high. It would be far better for your student to take a semester off to work than to let the debt continue to accumulate interest.
* Don’t set yourself up for future bailouts. If you decide to pay off your child’s accumulated debt, make it clear it’s a one-time deal. Read “Should parents bail out their kids?” for more. – MSN Money

]]> 4429 2009-10-01 00:09:00 2009-10-01 07:09:00 open open your-teen%e2%80%99s-credit-is-your-problem publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6470#comments wfw:commentRSS http://zikkir.com/business/6470/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6470 syndication_item_hash ca299f81165a1b08eda5a4c7e6ab5aef When should you lock in a mortgage? http://www.ethiopianreview.com/business/4428 Thu, 01 Oct 2009 07:13:32 +0000 http://zikkir.com/business/?p=6472 With interest rates near their historic lows, it’s tempting to try to secure a rate as quickly as possible, but homebuyers can sometimes pay more by locking in early.

Timing the market to land a mortgage with the lowest rate possible is like trying to hit a moving target. It’s not impossible, but it takes patience and a keen eye, particularly in today’s volatile market.

Mortgage rates can fluctuate over a few days or several weeks. The leading indicators that influence rates vary depending on the type of loan for which you’re approved and whether it’s a fixed-rate or adjustable rate mortgage, or ARM.

Before the downturn, some mortgage rates could be tracked and predicted relatively easily because a few leading indicators were more closely bound to rates, says Keith Gumbinger, a vice president for mortgage-data tracking firm HSH. For example, fixed-rate mortgages moved in closer step with 10-year Treasury note yields than they do now. Now those rates are also influenced significantly by other factors, including the unemployment rate, consumer spending and fear of inflation, he says.

According to the most recent data from Bankrate.com, the weekly average rate for a 30-year conforming mortgage was 5.38% as of Sept. 16, compared with 5.52% four weeks earlier. The average rate on a 15-year mortgage for the week of Sept. 16 was 4.72%, and the average rate on a 5/1 ARM (the most common ARM, whose interest is fixed for the first five years and then becomes variable) was 4.89%.

These rates approach the near-historic lows they touched earlier this year, but they may not stay that way for long.

“Trying to time the bottom of the marketplace is like trying to time the stock market,” Gumbinger says. “Even insiders don’t know when interest rates may change quickly.”

Borrowers can lock in a mortgage rate any time from a few weeks before closing up to the end of the process. Locking in is particularly useful if the borrower believes rates will soon increase. But navigating the mortgage labyrinth can be tricky and costly.

Here’s what borrowers should know about locking in mortgage rates.
When is the right time to lock in?
In most cases, buyers must first find the home they want to buy and sign a purchase agreement on it. That often requires a deposit of around 5% of the home’s price, says Gibran Nicholas, the chairman of CMPS Institute, an Ann Arbor, Mich., organization that trains and certifies mortgage lenders and brokers.

Once a lender has shown the potential homebuyers the mortgage for which they have qualified, they can then ask to lock in the rate through the closing process, which usually lasts around 30 to 45 days.
How much does it cost to lock in?
Lenders who allow borrowers to lock in a rate for around 30 days often don’t charge a fee, says Chip Cummings, the president of Northwind Financial, a mortgage and real-estate consulting company in Grand Rapids, Mich.

Borrowers who anticipate that closing will take longer can request to lock in a rate typically for up to 60 days, which most lenders will let them do for free or for a fee of up to 0.5% of the total loan, Nicholas says. Some lenders permit lock-ins for up to 90 or 120 days for some borrowers, including those who haven’t found the home they plan to purchase, but those homebuyers have to pay a fee of 0.5% to 2% of the total loan amount.

Buyers who have about a week left until their lock-in expires should contact their mortgage company to confirm that their closing will wrap up within the allotted time and, if not, to inquire about extending their lock, Cummings says.
What are the pros of locking in?
Locking in a mortgage rate eliminates uncertainty for the buyer, says Buz Livingston, a fee-only certified financial planner in Santa Rosa Beach, Fla. You’ll know whether you can afford your mortgage and in most cases what your monthly mortgage payments will be.

When shoppers find a mortgage at a price level they can afford, they should lock it in, Gumbinger says. Otherwise, they run the risk of ending up with a higher rate, which could result in a smaller mortgage that may not cover the cost of the home.

What are the cons of locking in?
Homebuyers who pay a fee to lock in a rate could end up losing out on the savings they’re after, Cummings says. Even if the lock-in rate is lower than rates four months from now, the fee borrowers pay could wipe out the savings they hoped to reap from the lower rate.

Those who walk away from a mortgage after they lock in a rate stand to lose the money they gave the lender, including application or appraisal fees, as well as any fee they paid to lock in the rate or extend the lock, Cummings says. Fees vary, depending on the lender.

Also, by locking in a rate now, borrowers stand to lose out should mortgage rates drop. Few lenders offer a float-down option, which allows borrowers to qualify for a lower rate should it kick in between lock-in and closing, even if the homebuyers locked in a higher rate. This option could cost an additional 0.25% to 0.5% of the total loan amount, Nicholas says. On a $200,000 mortgage, that translates to $500 to $1,000. Homebuyers should also ask how long closing is likely to take; in July, new regulations in the mortgage industry (including changes in the appraisal process) that could delay loan processing went into effect, says Nicholas.

What should borrowers ask their lender?
Home shoppers should find out how long they can lock in a rate and at what cost. They should also find out if they can sign on for a float-down option and what money they would be able to recoup if they back out of the mortgage.

And they should make sure that all of this information is included in a written rate-lock agreement.
What determines rates?
Interest rates on fixed mortgages are determined by mortgage-backed securities or mortgage bonds that trade on the bond market, Nicholas says. When there’s demand for mortgage bonds, mortgage rates drop, and when that demand declines, rates increase. A Federal Reserve plan to purchase more than $1 trillion in mortgage-backed securities by the end of the year has helped lower rates, Nicholas says. (Reliable mortgage lenders keep track of when the Fed buys mortgages to handicap a rate drop, he says.) Also, as economic indicators — including unemployment figures, consumer spending and concerns about inflation — worsen, rates on fixed mortgages drop, Gumbinger says.

Interest rates on ARMs are typically tied to either short-term Treasurys or the LIBOR, which is the interest rate that banks charge each other for short-term loans.

Fixed-rate mortgage or ARM?
Buyers who plan to stay in a home for the long term or who can’t stomach the risk of a variable mortgage rate are better off with fixed-rate mortgages, Livingston says. Long-term homeowners often include families with young children who move into a neighborhood for the schools.

ARMs make sense for borrowers who plan to stay in a home for the number of years that the mortgage’s rate is fixed, especially if that initial rate is significantly lower than what’s offered in a fixed-rate mortgage, Cummings says. Newlyweds who plan to upgrade or individuals who are transferred to new locations for work every few years often can benefit from ARMs.

What about refinancing?
The benefits of locking in a rate when you’re refinancing become apparent more quickly than when you’re buying a home. That’s because once you’re quoted a new mortgage rate, you can compare it to the rate you’ve been paying so far. Assuming the new rate is lower, you should consider locking it in, Nicholas says.

Before you can lock in a rate, you’ll typically have to pay for a home appraisal (costs vary, but they are often around $500) and around $30 to $50 for your credit report. – MSN Money and SmartMoney

]]> 4428 2009-10-01 00:13:32 2009-10-01 07:13:32 open open when-should-you-lock-in-a-mortgage publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6472#comments wfw:commentRSS http://zikkir.com/business/6472/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6472 syndication_item_hash 31364a008cf0ed8407687e742dbce769 7 lessons from investors’ lost decade http://www.ethiopianreview.com/business/4427 Thu, 01 Oct 2009 07:16:57 +0000 http://zikkir.com/business/?p=6474 Ten years ago, Dow 36,000 was a prediction that many took seriously. After going through 2 crashes, here’s what we can learn about hubris — and about keeping the lifeboats handy.

Much of the financial news this month has revolved around the first anniversary of the Panic of 2008 — the collapse of Lehman Brothers (LEHMQ, news, msgs), the takeover of Merrill Lynch, the government’s bailout of Wall Street.

But there was another important anniversary for investors last weekend. It’s been 10 years since the publication of “Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market,” a popular seller that became the poster child of 1990s stock market hubris.

Authors James K. Glassman and Kevin A. Hassett weren’t quite the Dan Browns of their day, but in their book they nonetheless claimed to have discovered a virtual secret code buried within the stock market.

In a nutshell, they argued that, even in that period of wildly “irrational exuberance,” shares were massively undervalued. Their reading of history revealed that shares were far less risky over time than was widely assumed. As a result, they concluded that the Dow Jones Industrial Average ($INDU), which at the time stood at 10,300 or so, was really worth more than three times as much.
2 crashes? That’s crazy talk
It’s easy to mock that brash forecast now. But few were laughing at the time. On the contrary, although only some on Wall Street were willing to take the arguments to these ridiculous extremes, many shared their underlying assumptions.

Back then, the only people subject to sustained derision on Wall Street were those who dissented. Anyone who warned that shares might disappoint was ignored. The few predicting a crash — let alone two — were considered cranks. (For the record: The Dow, which continues to enjoy a remarkable post-crash rally, rose 2.2% last week; it’s up 50% since March. But it’s still below where it stood in September 1999.)

Beyond a sorry contemplation of the past 10 years, what does this anniversary offer investors? What have we learned from the last decade? And where do we go from here?
Lesson from the losses
Here are seven lessons of a lost decade:

1. Don’t forget dividends. In the 1990s bubble, investors figured they were going to make all their money on capital gains. That’s a reason they were willing to buy shares paying out little or nothing.

Reality: Dividends have been investors’ life raft since. The Dow has fallen about 7% since the book came out. But when you include reinvested dividends, investors in the market are about even over that period.

2. Watch out for inflation. Price increases have been modest in the past decade, but during that period the dollar has still lost about 23% of its purchasing power.

So investors in the market have really gone backward. Ignoring inflation is a mistake too many are making again now as they keep all their money in bank accounts paying little or nothing. What matters isn’t just your nominal or headline return. It’s your return — after inflation.

3. Don’t overestimate long-term stock market returns. It’s remarkable to replay all those foolish, overoptimistic assumptions you used to hear everywhere about the stock market: “Wall Street goes up by around 8% to 10% a year,” “Shares will earn 7% above inflation over the long term” and so on.

What’s the truth? A global study conducted a few years ago by the London Business School suggested the average long-term return may have only been about 5% over inflation, rather than 7% or more.

That may not sound like a big difference, but over time it’s huge. It cuts your likely profits by a third over a single decade. And it means you run a much bigger risk that you will lose money over long periods.

4. Volatility matters. Be honest: Did you scale back your investments in March, when the Dow was below 7,000? How about in 2002, when markets were in free fall? Many people did. And no, it wasn’t just folly. On both occasions, share prices were roughly halved from their peak. Many people simply couldn’t afford the risk that prices could fall another 50%. Investors felt they were playing Russian roulette.

5. Price matters. The biggest problem in 1999 was simply that over the previous 17 years the stock market had already gone up tenfold — from around Dow 1,000 in 1982 to 10,000 in 1999. Shares on average were heavily overvalued. No wonder they have been a poor investment since.

6. Don’t hurry. Too many investors rushed to “get on board” 10 years ago, and paid the price. Wall Street encourages the habit: Fund managers and brokers like to use the grossly misleading phrase “let’s put your money to work” for this reason, even though anyone who “put their money to work” in 1999 lost money. Memo to potential investors: There is never a hurry, never a reason to rush.

7. Don’t forget your lifeboats! The biggest problem with the Titanic wasn’t that the captain was expecting a safe journey when he set sail. It was that the management was expecting a safe journey when it ordered so few lifeboats. Hope for the best — but plan for the worst. This is the reason for including nonequities in a portfolio, including inflation-protected government bonds and other assets.

Where are we now? What can we expect for the future?

The good news is that markets are no longer anywhere near as overvalued as they were 10 (or two) years ago. Global markets, which hit a peak of about 25 times forecast earnings in early 2000, are now a more reasonable 16 times. The global dividend yield has doubled to 2.5%.

The bad news is shares aren’t cheap either. Skeptical value managers — a rare but valuable breed — argue shares may be 10% or 20% above fair value.

That’s an argument for holding a good amount of shares — and plenty of dry powder. – MSN Money and The Wall Street Journal

]]> 4427 2009-10-01 00:16:57 2009-10-01 07:16:57 open open 7-lessons-from-investors%e2%80%99-lost-decade publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6474#comments wfw:commentRSS http://zikkir.com/business/6474/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6474 syndication_item_hash 51acde09dc9875af87991634b37ac8b2 Deadline looms for homebuyer credit http://www.ethiopianreview.com/business/4426 Thu, 01 Oct 2009 07:20:23 +0000 http://zikkir.com/business/?p=6476 Tired of paying rent and enticed by a first-time-homebuyer tax credit, 25-year-old Garrett Rebel began his search for a home in August, scouring the suburbs of Dallas for a house to meet his current and future needs. Yet he’s already running out of time.

The federal tax credit for first-time buyers is “a huge motivator” for Rebel, and he may end his search if the credit’s Nov. 30 deadline arrives and he still hasn’t closed on a deal.

Timing is everything for many first-time buyers today. For those who purchase a home this year, the tax credit is for 10% of the purchase price, up to $8,000. Those who have owned a home in the past three years aren’t eligible. Buyers also have to meet eligibility requirements regarding income; the current credit begins to phase out for singles who make more than $75,000 and couples who make more than $150,000.

Unless Congress extends it, the credit will expire Nov. 30.

“We are seeing an increase in buyers wanting to get closed prior to the tax credit closing deadline,” said real-estate agent Amy Downs, who represents Rebel. “We are seeing an increase in sellers wanting to get their homes on the market and closed by this deadline. I feel that if we can get the homes priced accordingly and a strong offer by mid-October, we can beat this deadline with a reputable lender working the buy side.”

* Compare mortgage rates

Beat the clock: Close before Nov. 20
Some real-estate agents and mortgage brokers are recommending that first-time buyers close no later than the week before Thanksgiving to ensure that no holiday-related office closings or abbreviated schedules interfere with the process. That means finalizing a purchase on or before Nov. 20.

In fact, to make sure you can take advantage of the credit, it’s probably best to go under contract no later than the second week of October, said Jim Sahnger, a mortgage planner with Palm Beach Financial Network in Florida.

The National Association of Realtors reports that it’s taking about two months to complete a home sale in the current market, as lenders scrutinize borrowers’ paperwork and appraisal issues pop up. In short, first-time buyers probably need to select a property and make an offer in the next few days if they want to ensure that any snags are resolved by the credit deadline.

But rushing to meet that deadline is a double-edged sword. The purchase of a home — let alone your first one — isn’t a decision that should be taken lightly.

“For anyone, the decision to buy a house has to be a right one,” Sahnger said. “While the $8,000 can be great to have, I wouldn’t let that force you into a decision. But if there is something that works and you want to take advantage of the credit, you can’t afford to delay the decision.”
Gambling on a credit extension
For buyers who don’t make the deadline, there is a chance the credit will be extended. At least 20 bills have been drafted in Congress regarding the credit; one-third of them have been introduced recently, said Lucien Salvant, the managing director of public affairs for the Realtors group.

Some proposals not only would extend the first-time-buyer credit into next year but also would expand it to include all homebuyers, remove income restrictions and raise the maximum amount of the credit, up to $15,000.

Including all buyers could create a bigger ripple effect as more Americans spend money on the many items and services associated with making a move, said Jerry Howard, the president and CEO of the National Association of Home Builders. The homebuilders and Realtors groups have been lobbying heavily for the extension.

“The first priority is going to be to renew the $8,000 credit, but we have some good arguments for expanding it,” said Jerry Giovaniello, the senior vice president and chief lobbyist for the Realtors group. He argues that the credit doesn’t cost much but has a huge impact.

If you’re a first-time buyer, however, waiting is a gamble.

“What you have in front of you now is a tax credit. After that, you don’t know what you have,” Salvant said. “This thing can go all different kinds of ways.”
How to find a home quickly
According to Realtor.com, first-time buyers search 12 weeks, on average, before they find a home. But there are ways for buyers to expedite their journey to closing:

* Sign up for automatic alerts for properties that fit your criteria. Many buyers start their searches online, and e-mail services exist that alert you when properties that meet your criteria are added, Realtor.com points out. If you’re working with a real-estate agent, he or she also may be able to register you for automatic alerts when homes are listed. But make sure the information you receive is fresh; you don’t have time to look at unavailable homes.
* Do all you can to ensure a smooth mortgage process. Collect pay stubs, bank statements and tax returns to prove income. Get prequalified. And while your loan is in process, don’t make major purchases on credit cards — that could delay closing, said Julie Reynolds, a spokeswoman for Realtor.com.
* Prepare for closing costs early. Get your insurance company and, if applicable, your homeowners association, to forward a cost estimate to the escrow company early, Realtor.com recommends. In many states, closing costs must be paid — in cash — at closing.

There are only so many buyers
NAR estimates that about 1.8 million to 2 million first-time buyers will take advantage of the tax credit this year and says that roughly 350,000 sales wouldn’t have taken place without the credit.

But the effectiveness of the credit will eventually peter out because there are only so many potential first-time buyers, said Richard Green, the director of the Lusk Center for Real Estate at the University of Southern California. He said that the credit is likely getting many first-time buyers to make their purchases six months to a year earlier than they would have otherwise.

“In terms of how effective it is, I don’t think it does any harm at this point. It’s pushing sales forward that would have happened anyway,” he said. “You’re giving money to people who were going to buy anyway.”

Increasing the credit amount to $15,000 and expanding it to everyone, however, could end up translating to higher home prices, Green said.

Still, there is growing support on Capitol Hill for a credit extension. Washington Research Group, a unit of securities firm Concept Capital, recently put the chance of extension at 60%.

Yet with Congress currently focusing on other issues and concerns about the country’s rising deficit, some wonder how difficult it will be for housing to garner attention anytime soon. “All eyes are on health care,” said Bruce Hahn, the president of the American Homeowners Grassroots Alliance. – MSN Money and MarketWatch

]]> 4426 2009-10-01 00:20:23 2009-10-01 07:20:23 open open deadline-looms-for-homebuyer-credit publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6476#comments wfw:commentRSS http://zikkir.com/business/6476/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6476 syndication_item_hash 875ab992013c9a2f83fad8a5ac06e976 Wall Street’s biggest casino: AIG http://www.ethiopianreview.com/business/4425 Thu, 01 Oct 2009 07:25:47 +0000 http://zikkir.com/business/?p=6478 Most investors left the stock for dead in the wake of last year’s US bailout. But speculative traders are swooping over the insurance giant’s remains in search of a quick payoff.

American International Group (AIG, news, msgs), a symbol of the financial crisis, has morphed into a playground for speculators.

At a traders meeting before the market opened on Monday, Scott Redler, chief strategist at hedge fund T3 Capital Management, noted that AIG’s stock hadn’t moved much for days and was ripe for a breakout. Whether it headed up or down, he said, the traders should be ready.

AIG shares, trading below $40 at the opening bell, climbed within 15 minutes to $41, then above $42. “This thing’s going to $45,” T3 President Marc Sperling said, watching his six computer monitors. “It’s on every trader’s radar screen across the country.”

AIG shares rose 21% for the day, and T3’s traders did “great,” said Redler. Since Aug. 5, the shares — deemed highly risky by most analysts — have more than tripled. “The stock paid the traders’ bills all summer,” Redler said.

A year after the government sought to avert a market meltdown by rescuing some of the country’s biggest financial firms, speculative traders are feasting on these companies’ remains. Shares of two government wards, mortgage giants Fannie Mae (FNM, news, msgs) and Freddie Mac (FRE, news, msgs), bounced between about 60 cents and $2 in August. Shares of Lehman Brothers (LEHMQ, news, msgs), left to fail by the government and currently in bankruptcy proceedings, rose from 5 cents to 20 cents in recent weeks.

AIG, arguably, has been the biggest casino of all. In the past seven weeks, its common shares have careened between $13 and $55, surging past $54 on Tuesday before closing at $45.80.

The extraordinary price action is a dramatic display of an unintended consequence of the U.S. bailout of AIG. On Sept. 16, 2008, the government propped up the faltering company by trading $85 billion in loans for an 80% stake in AIG in the form of preferred shares, which don’t trade on the market. It allowed the other 20% of the company’s equity — its millions of common shares — to continue to trade publicly.

Some analysts declared the deeply indebted company’s common shares basically dead money. Many buy-and-hold investors bailed out. That has left AIG’s common shares — $6.2 billion worth, as of Tuesday — trading most actively among short-term traders, who buy and sell based on market momentum and bet against each other in risky options trades. Often they use borrowed funds, amplifying their gains and losses.

Dominating the recent move in AIG stock were professional day traders like those at T3. But Goldman Sachs Group (GS, news, msgs) and JPMorgan Chase (JPM, news, msgs) also owned AIG shares during the run-up, according to people familiar with the matter. Fund managers including AllianceBernstein (AB, news, msgs) and Davis Selected Advisers also held the shares during a portion of the run-up, according to fund documents.

Taxpayers aren’t profiting, or taking a hit, from the movement in AIG’s common stock. That’s because the securities the government owns, preferred shares, aren’t traded. The government will recoup most of its investment if AIG can repay its debts through asset sales or profits. While a run-up in common shares would typically reflect an increase in expectations of a company’s overall value, in this case, AIG has to repay roughly $80 billion before holders of common stock can expect to see their share of profits.

Alex Herrera, head of Soldier Capital, a 26-member day-trading firm in Ramsey, N.J., has been among those buying and selling AIG. A former floor trader on the New York Stock Exchange, Herrera says he often trades blocks of 100,000 shares, using funds he borrows through the firm to make bets of as much as 15 times the size of his portfolio.

On some days during the past month, AIG trading volume topped 130 million shares — nearly equaling the total number of existing common shares — up from less than 10 million a day in early August. Trading by firms such as Soldier Capital is “one of the reasons you’re seeing all this volume,” says the 40-year-old Herrera.

The U.S. bailout of AIG on Sept. 16, 2008, followed by two additional rounds of government assistance, had most investors leaving the stock for dead. Trading volume dried up. Common shares, which surpassed $100 before the AIG meltdown, changed hands below $2 apiece.

The seeds of the recent run were sown on July 1. AIG did a “reverse stock split” in which 20 shares became one. Such a split typically attracts investors. It would also potentially guard against having the stock delisted from the New York Stock Exchange if its price went too low for too long.

The conversion changed the share price from $1.16 to roughly $20 a share. It didn’t, however, change AIG’s prospects for quickly repaying the government.

In the days after the split, traders like Kenneth Glick started betting the shares would fall. Glick, 37, works for Bear Capital Partners, a tiny day-trading outfit that operates from windowless offices in lower Manhattan in a building where employees often hike up four flights of stairs when the elevator is broken.

Staring at his computer, flanked by a wall-size print of reggae singer Bob Marley, Glick shorted roughly 2,000 shares of AIG, selling borrowed shares with the intention of replacing them with cheaper shares if the stock declined. Like most day traders, he didn’t hold onto his short positions overnight. He says he made about $1,000 from AIG trades in the week following the split.

On July 9, he posted a video on YouTube. “AIG shouldn’t even be a stock,” he said, calling the company “finished.” In the video, Glick disclosed that he was shorting the stock.

But the bulls prevailed. The next day, AIG closed at $11.74, up more than $2. On a Yahoo message board devoted to AIG, anonymous posters said the shares were heading up — with one predicting a $300 share price in three years.

By mid-July, AIG’s stock had become a tinderbox. Professional traders watch message boards as a barometer of investor sentiment, and monitor stocks for changes in buying patterns. Should the share price begin to rise, they believed, the many speculators who shorted the stock would have to buy the shares they had pledged, sending prices even higher. One more surge in AIG shares would ignite a fierce rally, traders say.

That spark came on Aug. 5, the day after AIG named a new chief executive, Robert Benmosche, a retired banker and insurance executive with a solid reputation in the insurance industry.

Within the first two hours of trading, shares surged 25% to $17. On message boards, posters speculated that former American Express (AXP, news, msgs) CEO Harvey Golub would join AIG. (He later did, as the board’s nonexecutive chairman.) There was talk on trading floors that AIG and the U.S. would strike a deal to cut down the debt the company owes the government.

The latter hasn’t materialized. But AIG’s shares closed up 60% on the day, at $22.

The jump in share prices spilled over into the market for AIG options, which had been moribund. Most of the trading was in call options, which allow the buyer to pay a small premium in exchange for the right to buy a stock on a particular date at a specified strike price.

Trading volume in AIG options exploded on Aug. 5 to 380,000 contracts, up from 10,000 or 20,000 in prior weeks. Trading was especially heavy in out-of-the-money call options, where the strike prices — ranging from $25 to $35 — were far above AIG’s current share price. In other words, buyers of such contracts were betting on big price jumps.

The strategy promised big profits. Traders who bought the August $30 calls on Aug. 5 could have more than doubled their money by the time the contracts expired.

The activity magnified price gains in AIG shares. That’s because options dealers whose contracts required them to deliver AIG shares at a higher price bought more AIG shares to hedge their bets.

Some day traders and brokers took bigger risks. They sold such options naked — without buying the stock they might be required to provide should AIG shares hit the strike price. It was a risky bet that the shares would fall.

Among those who made these wagers was William Lefkowitz, an options strategist at vFinance Investments in New York. On Aug. 5, he says his phone lines were jammed with calls from clients.

“I’d put someone on hold to finish a conversation with a client who wanted to buy (options on) AIG. By the time I got back to the first client the stock would have jumped three points,” he says. “It was amazing — a dream for a person who wanted to trade.”

Lefkowitz says he believed the stock would decline, so he proposed a bearish play: His clients would sell call options with the hope that they would pocket the buyer’s premium if the underlying stock failed to reach the strike price. He made the same bet personally. Like many of his clients, he sold the options naked.

“You want to do this when the stock is going up and things are exciting,” says Lefkowitz. In this case, the risky play worked: The options expired before AIG shares hit $50, letting Lefkowitz pocket a fast $500 without having to deliver the stock.

More traders chafed to get in. At Nine Points Management & Research, a hedge fund whose investing style involves jumping in after a stock catches fire or breaks sharply lower, manager Damon Vickers rued sitting on the sidelines. “It was ridiculous we missed the first move,” Vickers recalls saying in an August huddle with his partners. “This is what we watch for.”

On Aug. 20, AIG shares surged anew amid bullish comments from Benmosche.

The rally created a panic for traders who had sold naked call options on AIG shares with a $30 strike price, believing the stock never would hit that level. Now these players scrambled to buy AIG shares so they could meet their obligations. This drove shares still higher.

The rising price attracted more people who bet the stock would fall. On Aug. 20, 12.5 million shares were sold short through the Nasdaq — 47% of the exchange’s AIG volume. But shares kept rising, closing above $32.

Vickers, meanwhile, got his second chance. The fund manager grabbed the stock on Aug. 26, when AIG shares rose to nearly $38 from $34. The next day, in a moment that hearkened back to the fervor of the technology-stock boom, the fund manager appeared on television, predicting that AIG shares could hit $300.

Stock Chart (Year)
AIG
1

The chat rooms were jammed with investors trying to decipher what was happening. “Did CNBC say $300 per share?” read one comment.

As the stock moved toward $50 on Aug. 28, messages grew frantic. “Buy, BUY, BUYYYYYYY!!!! AIGGGGGGG,” read one. “Shoot for the $77 today with (impending) News,” read the next message on the same board.

That day, trading volume in AIG shares soared and the stock hit a closing high of $50.23.

On the options market, traders began betting that the stock would fall in coming months, possibly even back to single digits.

By Sept. 1, AIG shares had sunk to $36. Vickers at Nine Points says he got out at a small profit.

Manhattan day trader Glick, once bearish, began buying, darting in and out of AIG over the course of the day. By mid-September, he had lost most of the $1,000 he made earlier shorting the stock. “AIG has caused me nothing but heartache and pain,” Glick says now.

Others have kept churning. On Monday, the day a government report raised doubts about AIG’s ability to repay its debts, shares nonetheless surged 22%.

The run continued Tuesday, with shares reaching $54.40, near its August high. But after noon, commentator Jim Cramer wrote on TheStreet.com that AIG should do a secondary stock offering to help repay the government. Rumors swirled that the company could use its higher share price to raise cash at the expense of current shareholders. Shares plummeted, closing at $46.50. – MSN Money and The Wall Street Journal

]]> 4425 2009-10-01 00:25:47 2009-10-01 07:25:47 open open wall-street%e2%80%99s-biggest-casino-aig publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6478#comments wfw:commentRSS http://zikkir.com/business/6478/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6478 syndication_item_hash 4c92449621d056a7c60a269e699eb97e The next game-changing trend http://www.ethiopianreview.com/business/4424 Thu, 01 Oct 2009 07:31:29 +0000 http://zikkir.com/business/?p=6481 What’s it going to be? Economic recovery is by no means ensured, but there are intriguing investment possibilities out there — if they’re able to emerge.

Sometimes the shortest distance to portfolio disaster is a straight line between two points.

This, I believe, is one of those times. If I’ve been clear about nothing else in the past few weeks, I hope I’ve been clear on how impossible it is to find a reliable, investible trend in the current market if you’re looking more than a few months out.

Most investors, even if they’re being very, very careful, are radically underestimating the difficulty of finding an investible trend right now. According to the conventional wisdom, there are two possible trends: Either the trend line points up from here into a sustained recovery that looks a whole lot like the economy and market before the financial crisis, or it points down into a second bottom that looks a whole lot like the recent financial crisis.

But it’s not even that simple. There’s another alternative: that we’re still passing through a period of confusion without a trend. On the other side, and yet to emerge, is a new trend that won’t look like either the pre-crisis or crisis economies.

I have a strong suspicion that a year from now things will look very different from both where we are now and where we once were. I can’t give you all the details of the still-to-emerge trend, but I can block in some of this third alternative.

Does that sound like I’m about to make your investing life even more confusing? You bet. But the likelihood, history shows us, is that the way to make money after a crisis like this won’t strongly resemble the way to make money before the crisis. Investors need to consider that now it really is time for something completely different.

No trend to befriend
We all like to draw trends. Give us two data points and we’ll connect them with a straight line — and extrapolate that line until we run out of graph paper. I suspect it’s imbedded in our DNA from the days when the shortest distance to a meal was the straight throw of a rock. (These days, individuals with a strong genetic predisposition toward connecting data points become journalists or stock analysts or train men on the subway shuttle that runs between New York’s Times Square and Grand Central Station.)

And much of the time, drawing a trend line and following it puts money in our pockets. I’m a big believer in the old investing saw “The trend is your friend.” In fact, my book “The Jubak Picks” and the Jubak Picks 50 portfolio are built on the idea that most of the time it’s easier to make money in the stock market with the trend at your back than with the wind blowing in your face.

If you’re paying attention, though, I bet you’ve noticed my careful caveats, “much of the time” and “most of the time.” (For why “most of the time” investing even after a huge rally like this works, see this blog post. For what happens when it does not work, see this column.)

Right now, connecting the dots into a trend stands a good chance of getting an investor into trouble. The data are just too contradictory, too subject to divergent interpretations and too volatile from day to day. I can make a strong case for this rally to continue as the economy takes off in 2010 and for a double-dip recession as the economy sputters in 2010 and fails produce a sustainable recovery.

If the first trend is correct, you ought to be loading up on the kind of stocks I mentioned in my post “Time to start planning for the next rally.”

If the second is correct, you ought to be selling into this rally to raise cash and be loading your portfolio with things such as gold that do well when everything hits the fan.

And if the third alternative I’ve mentioned is correct? Then both of those portfolios will be left in the dust and you’ll be left playing catch-up to a group of stocks that aren’t even on most investors’ radar screens at the moment.

A not-so-straight line: The IPO pipeline
Like all exercises in trend drawing, my third alternative connects a few dots and then extrapolates them into a trend.

The dots for my third trend begin with the IPO of battery maker A123 Systems (AONE, news, msgs) that I wrote about recently. And they include the rest of what amounts to a huge backlog of venture-capital-funded startups with the potential to transform the current economy or at least create entirely new subindustries.

Ever hear of any of these companies? SilverSpring Networks. NanoH2O. Juvaris BioTherapeutics. AnoxKaldnes.

Unless you work at one of these companies or the venture-capital funds that have invested in them, the odds are that these are completely unfamiliar. And why should we have heard of them? They’re still private. We can’t put a nickel into any of them. And until this week, it looked like companies such as these were going to stay private for quite some time yet.

After averaging 70 initial public offerings a year from 2004 to 2007, according to Renaissance Capital, venture-capital-funded companies almost vanished from the market. If they were private, they stayed private. Raising money in the public markets has been that hard (next to impossible) and that expensive in 2008 and 2009.

The successful offering from A123 Systems on Thursday was a clear sign that the market has changed. (”Successful” is an understatement. The offering was red-hot. It priced at $13.50 a share, massively above the original projections for a range of $8 to $9.50, and when trading began, the stock opened at $17.)

We won’t see a lot of new companies with game-changing products come charging out of the gates immediately. Renaissance Capital calculates that most of the candidates for IPOs now in the pipeline come from private-equity investors looking to unload stuff they bought in the boom. No more than 10% of the pipeline consists of class technology or health sciences companies.
But if they’re not in the pipeline, they’re circling the entrance. And some of these — who can tell which ones? — are game-changers that represent whole new industries.

There are smart-grid companies such as SilverSpring Networks that will revolutionize the way power is delivered, stored, distributed and priced.

There are cellulosic ethanol companies, such as Range Fuels and Iogen, that will turn ethanol from a cruel joke — where the world has to choose between eating or creating energy — into one where just about any kind of plant can be turned into ethanol.

There are lighting companies such as Lumenz that will push energy-conserving LED lighting down until it’s actually affordable rather than a novelty for Christmas trees.

There are chemical companies such as AnoxKaldnes that have figured out how to turn sewage sludge into plastics.

And water companies such as NanoH2O that use nanotechnology to engineer vastly more efficient systems for purifying water.
A bet on pent-up creativity
These aren’t small companies. Because they’ve been locked out of the IPO market for so long and because much of this technology is hard to grow from the lab to the market, many of them have required $100 million or more in venture capital. Private investors that include Goldman Sachs (GS, news, msgs) and Royal Dutch Shell (RDS, news, msgs) have invested $130 million in Iogen. SilverSpring Networks has required $170 million in private capital.

And these aren’t small opportunities. Cisco Systems (CSCO, news, msgs) CEO John Chambers recently told investors and analysts that his company has identified at least 30 opportunities for new billion-dollar businesses that it will look to invest in (for Cisco, that means buying promising smaller companies) to fuel Cisco’s growth. Chambers didn’t give away the names of all the businesses that made Cisco salivate, but he did name smart grids.

One of the reasons that the future looks so dour even to the optimists in the United States is that, if you look around, you can’t see the exciting new companies that have in past decades created whole industries and hundreds of thousands of jobs. That’s understandable. The companies that might have generated that excitement have been bubbling away in private.

If you look for the next Google (GOOG, news, msgs) or the next Amazon.com (AMZN, news, msgs), the horizon is empty.

If you connect the dots into my third alternative trend, I think the landscape will look very different in, say, two years, and it will begin to look different as early as 2010. Suddenly, as if out of nowhere, it will be possible to talk about the creativity of U.S. business without getting laughed out of the room. It will be possible to talk about job creation and see where the jobs might come from. It will be possible to see the U.S. not as a country in decline but as a country that has come out of one of those periods of destruction that capitalism in our system regularly delivers and that has begun the creative part of the cycle.

Is this trend guaranteed? Does it have to happen? No way. If the economy goes back into a deep recession, in which fears that there is no bottom again run wild in investors’ minds, these companies won’t be able to go public and they won’t be able to reach the scale that’s required if they’re going to have a meaningful impact on our economy.

If the financial markets tank or freeze or become terribly expensive, that will stunt these companies, and this trend won’t gather significant force for years.

Which one of these three trends will go from a few data points on paper to a real force defining our economy? I can’t tell you. The uncertainties of the moment are real.

As an investor, I’m trying to spread my bets, hedging with this investment and that investment on this trend or that trend. That’s not a satisfying strategy. And the returns from that kind of hedged bet on the future will certainly lag the returns that an investor would get from backing the one right trend with an entire portfolio. But at the moment, the odds of picking the wrong trend with that kind of all-or-nothing bet makes me go with a hedged compromise.

So how do you add a bet on this third alternative trend to your portfolio? Take advantage of Cisco Systems’ interest in potential billion-dollar businesses. For more details on why you should own Cisco shares, check my blog after 2 p.m. ET today. – MSN Money and MoneyShow.com

]]> 4424 2009-10-01 00:31:29 2009-10-01 07:31:29 open open the-next-game-changing-trend publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6481#comments wfw:commentRSS http://zikkir.com/business/6481/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6481 syndication_item_hash 1f10cf059ad348b261b754f1c64e79fa Public health plan? 29% have one now http://www.ethiopianreview.com/business/4423 Thu, 01 Oct 2009 07:36:09 +0000 http://zikkir.com/business/?p=6483 Health coverage is shifting: Public health coverage is growing, and fewer Americans are covered by employer-sponsored plans, new census figures show.

The slice of the U.S. health insurance pie consumed by people in government programs grew last year as more Americans received coverage from Medicare and Medicaid and fewer were covered by private insurance, according to a new report.

The number of people with public health coverage of all types, including the State Children’s Health Insurance Program, or S-Chip, ballooned to 87.4 million from 83 million in 2007, according to the U.S. Census Bureau. Twenty-nine percent of people were covered by government programs.

“There’s been an increase in the number with government health insurance every year since 1999,” said Matt Brault, a statistician with the Census Bureau, noting that part of the rise may be attributable to population growth.

“In all of our debate over whether the government does things well or not, this shows the value of the government safety-net programs,” said Dr. Georges Benjamin, executive director of the American Public Health Association. “They’re there when you need them.”

At the same time, there was continued erosion in employer- and union-sponsored health insurance, which saw their share of the pie decline to 58.5% in 2008 from 59.3%. About 1 million people lost job-based coverage, leaving the number at 176 million. In 2000, employer-sponsored insurance covered 64.2% of people, or 179.4 million Americans.

The number of people buying private insurance for themselves remained steady at 26.8 million last year, the same as it’s been since 2000. (See “How to buy your own health insurance.”)

The number of people who lack health coverage ticked up to 46.3 million in 2008 from 45.7 million the previous year. (See “A survival guide for the uninsured.”)

But fewer children went without coverage last year due largely to expansions in Medicaid and S-Chip. In 2008, nearly 10% of children under age 18 were without health insurance, down from 11% in 2007. There were 7.3 million uninsured kids last year, the lowest number and rate since 1987.

The findings come at a pivotal time for national health-reform efforts. President Barack Obama described the perils of maintaining health insurance when he recast his bid for sweeping legislation in a prime-time address to Congress on Sept. 9. (Read more on the Obama speech.)

“We are the only advanced democracy on Earth — the only wealthy nation — that allows such hardships for millions of its people,” Obama said. “There are now more than 30 million American citizens who cannot get coverage. In just a two-year period, one in every three Americans goes without health care coverage at some point. And every day, 14,000 Americans lose their coverage. In other words, it can happen to anyone.”
Connection to employment
People who don’t have health insurance are among the most talked about and least visible groups in the push to overhaul the nation’s health care system, and their ranks grew last year. Because of the patchwork way coverage is structured until a person ages into Medicare eligibility, the prospect of being uninsured is a problem confined to the early and middle parts of life. Last year, 20% of adults under age 65 were uninsured compared with less than 2% of people over 65.

“Without the public safety net, the number for 2008 would’ve been considerably higher than what (the report) portrayed,” said Ron Pollack, executive director of Families USA, a health-care advocacy group in Washington.

The present uninsured rate is likely significantly higher as a result of the recession’s escalating job-loss toll this year, Pollack said. Most working-age Americans get health insurance through their jobs. As the unemployment rate ratchets up, more people lose coverage they can afford.

In 2008, the unemployment rate ranged from a low of 4.8% to a high of 7.2%, according to the Labor Department. In January of this year, the jobless rate was 7.6%. It continued to rise over the next seven months, hitting 9.7% in August, the highest level in 26 years.

“Our assumption is the number of people who are uninsured at this moment probably comes close to 50 million,” Pollack said. “Past studies show that for each 1% increase in the unemployment rate, approximately 1.1 million people are added to the ranks of the uninsured.”

The overall percentage of uninsured Americans was statistically unchanged at 15.4% last year.

Some analysts say the census numbers understate the problem because survey participants are asked whether they had coverage during any part of the calendar year. If someone had health insurance for the first quarter but then was without it for the next nine months, for example, they wouldn’t be counted as uninsured.

What does it mean to have all those uninsured?

Contrary to popular belief, emergency-room crowding isn’t caused by a disproportionate number of uninsured patients seeking care in the ER. Insured patients comprise the bulk of ER visits, with uninsured or “self-pay” patients accounting for 17% of visits, only slightly higher than their representation in the general population.

While ERs are required by federal law to treat and stabilize patients without regard for their ability to pay, the bill will come due whether the patient is insured or not.

Hospitals vary widely on whether they’ll consider charity care, work out a payment plan or move quickly to involve collections agencies to recover their costs, said Renee Hsia, an assistant professor of emergency medicine at the University of California, San Francisco, and an emergency physician at San Francisco General Hospital.

That’s why the uninsured tend to stay away when they can help it, she said.

“People without insurance are apprehensive about coming to the emergency department or receiving health care in general because they’re not able to even have an idea of the possible (cost) of that care,” Hsia said.

A relative of hers recently spent two days in a hospital’s intensive care unit after suffering a small stroke. Hsia’s family member had good employer-based health insurance, she said, so the $50,000 hospital charge for room and board was reduced.

The result was an insurance payment of $4,250 and “patient savings” of a whopping $46,280.

“An uninsured patient would receive the $50,000 bill,” Hsia said. “That doesn’t include physician services yet.”

People who lack coverage aren’t a homogenous group, she said. They include some low-income people who may earn too much to qualify for public programs but not enough to afford coverage on their own, and those who are affluent and often self-employed but choose not to buy coverage, and many scenarios in between.

The health-reform bills circulating on Capitol Hill seek to extend coverage to more Americans in part by expanding Medicaid, the joint state-federal government program for the poor. But many governors have balked at the cost of covering more people as state budgets falter in the recession.

“If they’re forced to pay the same percentage or some significant portion of that increase, they’re saying they can’t afford it,” Pollack said. “That hopefully will be dealt with as the legislation moves through.”

The uninsured aren’t the only Americans who worry about costs and coverage. In 2007, 25 million Americans were underinsured, meaning their coverage didn’t adequately protect them from high health costs, a 60% jump from 2003, according to the Commonwealth Fund. Other studies show medical bills contribute to half of personal bankruptcies. – MSN Money and MarketWatch

]]> 4423 2009-10-01 00:36:09 2009-10-01 07:36:09 open open public-health-plan-29-have-one-now publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6483#comments wfw:commentRSS http://zikkir.com/business/6483/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6483 syndication_item_hash 24c93006a6e6d5a193a99c35a39a9fa9 Build credit without credit cards http://www.ethiopianreview.com/business/4422 Thu, 01 Oct 2009 07:43:39 +0000 http://zikkir.com/business/?p=6485 You don’t need plastic to establish credit, but you do need a good credit history even if you don’t intend to borrow. Here are 7 tips — plus 4 traps to avoid.

The fastest way to build or rebuild your credit scores is by using both of the two main types of credit:

* Revolving accounts (credit cards, which allow you to build up and pay down debt).
* Installment loans (mortgages, auto loans and other debt that’s repaid in periodic installments).

But some people can’t get credit cards in today’s tight environment. Others don’t want to use them, often because they don’t trust themselves not to overspend or because they don’t trust credit card companies.

Fortunately, these folks don’t have to give up on having great credit scores, which is a good thing. These days, getting a good rate on a mortgage or most other loans — or even getting approved at all — depends on having decent scores.

Even if you don’t plan to borrow, having good credit is important, because credit information is also used by cell phone companies, landlords and employers to evaluate applicants and by insurance companies to set rates.

There are several ways to build or improve a credit history without using credit cards. Among them:
1. Get a secured loan from a credit union
Often called a share-secured loan, this type of borrowing is backed by money you place in a credit union savings account or certificate of deposit. The interest rate you pay is typically a few percentage points above the rate you earn on your money.

These loans may be easier to get than bank loans, since credit unions are often willing to look at more than just your credit scores, said Susan Tiffany, the director of consumer publications for the Credit Union National Association. (Find a credit union near you.)

“(Credit unions) don’t treat credit scores as the only source of information about you,” Tiffany said. “They’re looking for ways to say yes. Are you responsible with your checking account? Are you demonstrating that you’re trying to be a regular saver? Those behaviors can help.”

But you need to know something important about these and other installment loans: After they’re paid off, creditors may stop building your scores.

The leading FICO credit-scoring formula is designed to predict people’s risk of default, and it responds best when people actively and responsibly use credit. A history of responsible credit use will get you only so far.

“All things being equal, it’s better to have at least one open account as opposed to having them all closed,” said Barry Paperno, the manager of consumer operations for Fair Isaac, which designs the leading credit-scoring formula.

Eventually, your old loans may not help you at all, because they’ll be dropped from your credit reports. How long that takes depends on the lender and its policies; some report closed accounts indefinitely or for 10 years, while others stop reporting them within months. Once a loan disappears from your credit reports it stops helping your scores.

And yes, there is irony here:

* You don’t have to pay a dime in interest if you use credit cards to build your scores. If you use them and pay them off on time and in full, you can improve your credit without paying finance charges.
* If you refuse to use credit cards, however, you may have to stay in debt to build your scores.

You’ll also want to make sure your loan is reported to all three major credit bureaus: Equifax, Experian and TransUnion. Some credit unions and smaller banks save money by reporting to only one. You want all three of your credit bureau reports to reflect the loan so that you get the benefit no matter which bureau is used by future lenders, insurance companies, landlords or employers.
2. Consider peer-to-peer loans
Peer-to-peer, or social, lending sites such as Lending Club and Prosper aim to connect borrowers with individual investors. The rates borrowers can get on three-year fixed-rate loans depend on their credit and their applications, with a loan at Prosper running anywhere from 7.8% to 26%, said spokeswoman Tiffany Fox. Investors “bid” on the borrowers’ applications, with the investor willing to provide the lowest interest rate winning the contract.

Lending Club reports all payments to the three credit bureaus, while Prosper reports to just Experian and TransUnion. Prosper requires borrowers to have credit scores of at least 640, while Lending Club’s minimum is 660.
3. Student? Get a federal student loan
Federal student loans don’t require credit checks, but you do need to be at least a half-time college student and to have submitted a Free Application for Federal Student Aid, said Mark Kantrowitz of FinAid. You don’t have to show financial need, and rates for unsubsidized federal Stafford loans are fixed at 6.8%.

Your loans may not show up on your credit reports until you’re in repayment mode, but once they appear, your on-time payments will help boost your scores.

4. Become an authorized user on someone else’s card
When you’re added as an authorized user to someone’s credit card, his or her history with that card is typically imported to your credit reports. If the person is responsible with the card — charging lightly and paying on time — that could enhance your scores. Conversely, if the other person messes up, that could hurt you, although you just need to be removed as authorized user for the bad stuff to disappear from your files.

The other person doesn’t need to give you access to the card to add you as an authorized user, but you should make sure the credit card will export the information to your credit reports. Some issuers report authorized-user information only for spouses or family members.

Also, don’t go overboard. The newest version of the leading FICO formula limits the number of authorized-user accounts that are counted, a step that was taken to discourage credit repair firms that were adding people to strangers’ accounts.
5. Get (or be) a co-signer
Getting a co-signer can help you land a loan you might not otherwise get, and the loan can help build your credit scores. Or you can ask to be added as a co-signer to a responsible person’s loan, and his or her payment history will be included in your files.

Co-signing is risky for each party because it makes you equally responsible for the debt. If a payment is missed, it can trash both parties’ credit scores, and the effects can last for up to seven years. Unlike authorized-user status, which can easily be changed, you can’t be removed from a co-signed debt — it must be paid off or refinanced before you’re released from the obligation.

If you’re being added as a co-signer, you should be able to pay off the loan yourself and get online access to the account to make sure payments are made on time.
6. Put up your own money with a secured credit card
If you really don’t like credit cards, you’ll want to skip this option. If you want a card but can’t get a regular account, however, this may be the way to go.

Secured cards require that you make a deposit with the issuing bank, typically of $200 to $1,000. You usually get a credit limit equal to your deposit.

There are fewer secured cards available these days, and many have higher credit standards than in the past. Index Credit Cards offers the most complete look at what’s available, but you can look for secured cards among the offerings aimed at people with limited or poor credit histories at CardRatings.com, LowCards.com and CreditCards.com.

Look for cards that report to all three major credit bureaus. Check the fees; avoid cards that charge more than $100 in setup and other initial fees.
7. Charge it — but not on a credit card
If your credit history is already good and you want to keep it that way without using credit cards, consider a charge card.

These cards, provided by American Express and Diner’s Club, don’t normally allow you to carry a balance. You’re supposed to pay off your bill in full every month, and you typically have no preset spending limit.

There’s a hidden benefit to using charge cards: You don’t have to worry about credit utilization.

For credit-scoring newbies: Credit utilization measures how much of your available credit you’re using. This ratio makes up 30% of your FICO score, so it’s pretty important. The more of a credit card limit you use, the bigger the potential dent on your score, which is why you typically want to keep charges to 30% or less of your limit, even when you pay in full.

But charge cards don’t have traditional credit limits. So the latest versions of the FICO formula treat them differently from credit cards. Charge card balances aren’t included at all in credit utilization formulas, so you can run up big bills without fear — as long as you can pay them off when the bill arrives.

“The newer models of the FICO separate out (charge cards) from credit cards,” Paperno said. Balances on charge cards “aren’t included in the revolving utilization calculations.”
And 4 to avoid
You may be tempted by other ways to build your credit, but many have hidden traps or won’t work. Methods you don’t want to use include:

* Prepaid cards. Some prepaid cards promise to help you build your credit, but the fees charged are often high, and your activity may be reported to an “alternative” credit agency, rather than to the three bureaus that most lenders use. For example, the fee for Eufora’s prepaid card Credit Builder is $139.75 to $219.95, and the card reports to just two of the three bureaus, according to Michelle Jun, a staff attorney for Consumers Union, who recently researched prepaid cards. AccountNow doesn’t even do that; this prepaid card reports to the Payment Reporting Builds Credit, an alternative credit-reporting agency that consumers can sign up with to self-report their bill payments.
# Bad-credit credit cards. These unsecured cards tend to come with tiny credit limits and high upfront fees. A secured card is typically a better option if you’re going to use plastic.
# Rent to own. You’ll pay two to three times over for stuff you buy from one of these outfits, and your payments typically aren’t reported to the three major credit bureaus.
# Other loans that aren’t reported to the credit bureaus. Loans from your retirement plan or life insurance policies won’t help boost your scores because your payments aren’t reported to the bureaus. – MSN Money

]]> 4422 2009-10-01 00:43:39 2009-10-01 07:43:39 open open build-credit-without-credit-cards publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6485#comments wfw:commentRSS http://zikkir.com/business/6485/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6485 syndication_item_hash bc65ce8887da9386850e71f0afceafe0 1401 93.84.244.246 2009-10-14 09:53:46 2009-10-14 16:53:46 0 0 0 The case for inflation — and gold http://www.ethiopianreview.com/business/4421 Thu, 01 Oct 2009 07:47:04 +0000 http://zikkir.com/business/?p=6487 Top investors in precious metals are waiting for a pullback to buy, but they say gold looks like a promising inflation hedge well into the future. China is hungry for it, too.

On a recent trip to New York, I had the opportunity to meet with my (very successful) metal trader friends and some other smart investors, as well as listen to a star-studded cast of brilliant thinkers/investors who shared their world views at the Grant’s Interest Rate Observer fall conference.

My metal trader friends all want to see a big flush in gold — a fairly quick 5% to 8% price drop — before piling in. But they say if the drop doesn’t happen in the next week or so, it probably won’t.

I don’t want to go into too much detail about what the speakers said at the conference. That would be unfair to those who paid good money to hear their views, and to Jim Grant. But I would like to share a couple of thoughts I came away with and a couple of points made by hedge fund luminary John Paulson, famed for making billions by anticipating the subprime mortgage meltdown.

In the for-what-it’s-worth department, when I attended the Grant’s conference in the fall of 2007, I noted that there was no outright bearishness and that it seemed folks were pretty sanguine. This was six months after the first payment defaults had begun, which was the start of the vaporization of the subprime industry.

I wrote at the time that I had expected to see much more bearishness at the conference. I didn’t know what that meant investment-wise, but I thought it was worth noting.

However, at last week’s conference in New York, bearishness was quite profound. That does not mean the participants don’t have the right view this time around. And there are certainly many, many good reasons to be bearish. I myself have certainly spilled enough ink listing them.

But other than Grant’s view that the size of the collapse means we’re about to see a decent-sized bounce in the economy (however sustainable) — eloquently expressed in his Wall Street Journal article “From bear to bull” — and, from Paulson, some expression of confidence in investors’ animal spirits, there was virtually no optimism.

Paulson holds court
I don’t think I would shock anyone if I said that the day’s headliner at the conference was Paulson (though the other speakers were equally fascinating to me). Everyone wants to know what he thinks because he made so much money on the subprime collapse. But it should be noted that he puts his pants on one leg at a time, too, and thus can be wrong like the rest of us.

After all, he wasn’t that much more right about what was liable to happen than a handful of others, such as Grant and my friend I often refer to here as the Lord of the Dark Matter (who’s quoted, for example, in “The trouble with techs right now” and “Will economy’s green shoots wither?”).

However, what Paulson did was to take his views and express them brilliantly,which may also have been a function of just how well he understood the situation. Thus, given Paulson’s recent track record, those who have a bullish viewpoint on gold naturally want to know what he thinks.

In short, he believes that money printing by the government will ultimately lead to a good deal of inflation.

Parenthetically, while deflationary chatter certainly has the headlines and the upper hand regarding folks’ opinions in the short run, I see quite a body of sharp investment minds coming to the conclusion that in a social democracy with a fiat currency, essentially all roads lead to inflation.

In any case, Paulson is convinced that gold will be a very good way to protect himself from the eventuality of currency debasement (i.e., inflation). He observed that if one thinks about gold in a three- or five-year time horizon (instead of hour to hour, day to day or week to week), the probability increases of gold being higher over time — and, most likely, much higher.

I had not thought about gold from that point of view, but that is exactly right. Consequently, if folks have positions that are reasonably sized, it makes volatility — especially when it’s downward, as was the case last week — much easier to accept.
China’s stomach growls for gold
I also had a chance to chat with the Lord of the Dark Matter at the conference. He has information, on pretty good authority, corroborating the viewpoint expressed on several blogs that Chinese authorities would like to purchase the International Monetary Fund’s gold.

Whether that transaction comes to pass, we’ll have to wait and see. But when it comes to China’s interest in gold or other hard assets, it does seem that where there is smoke, there is fire, and China is making its interest known by its actions.

Just because the Chinese don’t come out and say, “Gee, we want to buy all the gold we can,” doesn’t mean that they don’t want to. Obviously, if they did say something like that, they’d be shooting themselves in the foot, and they’re way too smart for that.

Another point I found interesting: Annaly Capital Management CEO Mike Farrell, who’s in the thick of debt restructuring in the mortgage arena, says repair is taking place slowly but surely, though it will take many years. The $64 trillion question is whether the dollar or the Treasury market will hold up long enough to give the financial system half a decade or more to repair itself. My suspicions are that those problems won’t wait that long, but we shall see.

The conference did have a couple of speakers who feel that a 1930s-style deflation is in store for us, although the folks in that camp somehow seem to think the Federal Reserve will act responsibly and actually be ready to remove liquidity as soon as possible.

I expect the Fed to talk tough from time to time — after all, what choice does it have? But it will be meek as a kitten and terrified of withdrawing much liquidity until the unemployment rate has dropped radically from where it is today.

If my long-held view is correct, we can’t have any prolonged deflation in this country until after the printing press is taken away from the Fed via the currency market, the bond market or both.
Housekeeping
I was recently interviewed once again by Eric King. He does a terrific job when conducting these interviews, and here’s the latest one. – MSN Money

]]> 4421 2009-10-01 00:47:04 2009-10-01 07:47:04 open open the-case-for-inflation-%e2%80%94-and-gold publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6487#comments wfw:commentRSS http://zikkir.com/business/6487/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6487 syndication_item_hash bd50631dc304ef983d7053a64bb4b62f 401k’s bounce back from wreckage http://www.ethiopianreview.com/business/4420 Thu, 01 Oct 2009 07:49:51 +0000 http://zikkir.com/business/?p=6489 For younger savers, balances are now above what they were to start 2008. But pain remains, particularly for those with the most saved and those who stopped contributing.

Many working Americans have clawed their way back from bear market losses to rebuild their retirement savings.

That news, released in a report earlier this month, is impressive; the stock market still isn’t close to retracing its recession losses. Despite a strong rally since March, the Standard & Poor’s 500 Index ($INX) remains about 32% below its pre-recession high.

Millions of Americans with 401k plans are still struggling, but their position is much better than it was just a few months ago. That’s the message from numbers released by the Employee Benefit Research Institute, which tracks employer-based 401k retirement plans.

The EBRI survey (.pdf file) doesn’t boil down its results into a single average for all 401k plans, but consider one important midcareer group: people who have been saving for 10 to 19 years with the same employer. Within this group, younger workers (below age 45) have average account balances that are 3% higher now than at the start of 2008, when the stock market was still near its peak. Workers over 45 tend to have account balances that are down since 2008, but by less than 4% on average.
Substantial gains
That’s a huge improvement since a similar EBRI study just before the stock market’s recovery this spring. Back in late January, these same people had account balances that had declined more than 20% (.pdf file) in a year, on average. That was true whether the account holders were below or above 45 years old.

The EBRI study broke 401k plans into 13 categories, and found that people in nine of those categories have average balances above the early-2008 levels, while four are still below. The worst-off group, people over 55 who have been saving for more than 20 years, have average losses of 8%.

A couple of factors explain the rebound for younger workers.

The stock market’s rise since March has helped a lot, boosting everyone invested in equity funds.

But other reasons have more to do with the virtues of the “tortoise” than with people picking investments that have raced ahead like the fabled hare. Many 401k accounts are ahead of their early-2008 levels simply because people have kept contributing new money from their paychecks month by month.

In the EBRI report, people who are younger or who have been in their jobs fewer years are far more likely to have balances that are up since 2008. That’s because new contributions are generally a higher share of the account value for them than for people who have been saving for more than a decade.
Danger of bailing out
The report doesn’t endorse a particular approach to investing, but the evidence appears to confirm the virtues of sticking with a plan. Investors who held lots of stocks before the recession, then bailed out, would have suffered the losses without reaping the recent gains as equities recovered.

One standard approach to retirement saving, by contrast, is the “life cycle” fund. These blend stocks and bonds, and adjust the stock percentage downward as the account holder nears retirement. Some of the hardest-hit account holders have been people who haven’t followed such a pattern — those who were nearing retirement in 2008 but had more than 90% of assets in stocks.

Finally, after mentioning the tortoise and hare, let’s not forget another fable: the ant and the grasshopper. The ant saved for the future. The challenge for America is that millions of workers are more like the grasshopper — without any retirement plan. As of 2004, more than half of all households had zero savings in an employer-based 401k-type plan or tax-preferred savings account, according to the Retirement Security Project. – MSN Money

]]> 4420 2009-10-01 00:49:51 2009-10-01 07:49:51 open open 401k%e2%80%99s-bounce-back-from-wreckage publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6489#comments wfw:commentRSS http://zikkir.com/business/6489/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6489 syndication_item_hash 79790665b4fbf00b431399bb04a5fd4d Why can’t I get a credit card? http://www.ethiopianreview.com/business/4419 Thu, 01 Oct 2009 07:54:02 +0000 http://zikkir.com/business/?p=6491 A steady income and zero debt are no guarantees. If you have no credit history, banks and stores aren’t likely to take a chance on you.

While picking up a new shirt at J.Crew a few months ago, I asked about opening one of those store credit cards — you know, the ones that give you a discount on the first purchase. I filled out the paperwork, and the cashier phoned the lending bank and gave them my information. “You’ll hear if you’ve been approved by mail in a few days,” he said. A few weeks later, I got a letter from World Financial Network National Bank (how dubious does that sound?) saying it would not be able to extend me a line of credit.

The J.Crew card was the fourth one I’d applied for over the past year, and it was my third rejection. I am a 27-year-old professional with a full-time job, no mortgage, no children and no student loans. With the exception of one outstanding dental bill, I have absolutely no debt. I pay my bills on time; I never miss rent. I should be an ideal candidate for a credit card, right? Not so.

With the economy in the dumps, it’s harder than ever to get a card. The amount of credit card offers mailed to U.S. households has dropped precipitously in 2009, from an estimated 1.13 billion in the first fiscal quarter of 2008 to 372.4 million in the same period this year. Why the decline in junk mail? Last month, credit card default rates reached their highest point since the recession began. Bank of America claimed its rate hit 14.54%, while Citigroup (which issues MasterCard) saw its default rate go from 10.03% to 12.14%. American Express, however, reported a slight decrease — from 8.9% to 8.4% — in default rates. Perhaps that decline is related to AmEx offering certain customers a $300 bribe to close their accounts.

Well, that explains why my American Express application got rejected. But why, despite my decent financial record, am I a particularly bad candidate for a credit card? I’ve got no credit history. Typically, the best time to get your first credit card is in college, when banks litter campuses with offers. One study estimated that students receive 25 to 50 applications per semester. (For more, read “College students carrying more credit card debt.”)

I was always wary of getting a credit card as an undergrad. I was living hand to mouth, and it was always easy enough to pick up a bar tab with a debit card. What I didn’t realize was that I’d very soon need a credit card to live. If I’m doomed to a life without plastic, what am I going to do if I want to buy a house or lease a car? There are certain things you can’t put on a debit card.

My quest for credit is a paradoxical one: How can I establish a credit history when banks won’t let me create one in the first place?

When my American Express, MasterCard and Continental Chase Rewards applications were denied, I did what friends and relatives advised — try to take out a card with a department store, hence the J.Crew card. It turns out they gave me bad advice. J.Crew, just like everybody else I had tried before, requires applicants to have credit histories.

Gail Cunningham, the spokeswoman for the National Foundation for Credit Counseling, told me that, historically, gas cards and department store cards have been relatively easy to get because the companies’ “risk is pretty small — how much can you charge at the filling station?” But in this time of economic decline, even those once-freewheeling retailers are cutting back on the number of applications they approve. Standard & Poor’s recently reported that U.S. retail outlets that extend credit claimed losses of 12.2% in May, the highest since S&P started tracking such data in January 2000.

So what should I do to get a credit card? I could just keep filling out applications — and I’d probably have a better chance with smaller community banks, as they didn’t suffer the financial blows that the larger institutions did. But sending in loads of applications will probably hurt me in the end. When lenders review applicants, they look at five factors: identification, account history, public records (bankruptcy filings, court records of tax liens), consumer statements (challenges to the status of an account with a lender) and inquiries.

That last item is the most crucial for those of us with no credit: It shows how many times lenders have requested to review an applicant’s credit history. The more times that information has been reviewed (and rejected), the more suspicious you look as an applicant.

Since I have no credit history, I basically don’t exist to these lenders — and since I’ve only started applying for credit in earnest since the start of the credit crunch, I pose more of a gamble to these banks, which aren’t willing to take risks on applicants who can’t prove their fiscal prudence.

As a last resort, I went to a branch of Chase Bank, the place that happily accepts my twice-monthly direct deposits. “You don’t have credit?” the customer-service rep asked. “Well, it’s going to be very hard to get (a card).” I had heard about secured credit cards, which require you to put up cash as collateral — think of it as a credit card with training wheels. When I asked the financial adviser about that option, she laughed — laughed! — and said Chase didn’t offer those. It was like that scene in “Pee-wee’s Big Adventure,” when Pee-wee asks to see the basement of the Alamo and gets heckled off the grounds by the tour guide.

My quest for credit does have a happy ending, however. Bank of America actually does offer one of those secured credit cards, the BankAmericard Visa Secured Card. Mine just arrived three weeks ago. First purchase? A hotel stay for a friend’s wedding out of town. (My balance is almost maxed out for the month, alas.) It will take about a year before I’ve proved my worth and can get those ridiculous credit card training wheels removed. My account will be evaluated periodically and, provided I’m in good standing, my credit score will increase. And you know what? If my mailbox suddenly becomes flooded with offers, I promise I won’t complain. – MSN Money and Slate.com

]]> 4419 2009-10-01 00:54:02 2009-10-01 07:54:02 open open why-can%e2%80%99t-i-get-a-credit-card publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6491#comments wfw:commentRSS http://zikkir.com/business/6491/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6491 syndication_item_hash 2737de25eab4de39f54c4d25746da219 Another revolution coming in China http://www.ethiopianreview.com/business/4418 Thu, 01 Oct 2009 07:59:20 +0000 http://zikkir.com/business/?p=6493 The Beijing government plans a massive investment in social services, particularly health care. For investors, this will have a major impact on how to make money in China.

Health care spending doubled from 2002 to 2007.

Tens of millions of people aren’t covered by any health insurance, and millions who had insurance have lost it as a result of the global economic crisis.

Despite the rise in health care spending, the population isn’t getting any healthier. Infant mortality rates have stopped declining. Diseases once under control have re-emerged.

Too many people live in fear that they’re only one illness away from poverty.

Yep, things sure are bad . . . in China. So bad that, in January, the Beijing government announced a plan to spend $124 billion by 2011 to provide some form of health insurance to 90% of the population.

That’s a huge amount of money. Yes, the dollars being thrown around in our own health care debate are larger: The draft bill being debated in the Senate Finance Committee carried a price tag of $856 billion when introduced. But that would be the cost for 10 years.

The Chinese price tag of $124 billion for two years is impressively large when you consider that China is still a relatively poor country. U.S. gross domestic product hit $14.3 trillion in 2008, estimates the CIA World Factbook. The factbook puts the size of China’s economy at $4.4 trillion, using the official exchange rate, or $7 trillion at what’s called purchasing power parity. (Purchasing power parity attempts to adjust official figures to take into account what people in different countries actually pay for the same goods and services.)
A radical and profitable change
Either way you look at it, spending more than $60 billion a year to improve health care in China has the potential to be revolutionary.

And I think it will be exactly that. Especially if it is, as I think likely, just the first wave of government spending in areas such as health care, education and retirement pensions. We are looking at the beginning of revolutionary change in the Chinese economy.

For investors, that revolution will totally change how to make money in China.

Let me explain what’s so revolutionary about spending $124 billion over two years.

The goals of the plan seem modest enough. The government wants to extend some form of health insurance to 90% of the Chinese population. “Some form” is the key. Each person covered would get an annual subsidy worth about $17 beginning in 2010. Medicines would be covered by the insurance. Some of the money would go to improving health centers in rural areas, and efforts would be made to reform the operation of public hospitals.

Now, $17 a year per person doesn’t seem like much, and indeed it’s not in the developed economies of the world. It’s a much bigger deal in rural China, which is much poorer than the urban areas.

In the first quarter of 2009, according to a nationwide government survey, the average household in rural China showed an annual income of $237 at official exchange rates. Rural households average 4.5 people (or at least they did in 1995, which is the most recent data I could find). In a household of four people, the new plan would provide an annual budget of $68 a year. That’s a big percentage on a household income of $237.
Cash and apothecary
The effect, though, is even greater if you look at the way China’s health care system works now. Everything requires a cash payment from the minute you walk through the door.

I’m going to take a few details from a description of a hospital visit by Bill Siggins, who had surgery in a Chinese hospital to remove his appendix. (You can read the complete account here.)

The first charge was 10 yuan, about $1.40, to register. After a preliminary diagnosis, there were tests to confirm the diagnosis. Test costs totaled $100. Fortunately for Siggins, an operating room was available, but it required a $730 deposit. In recovery, a thermometer cost $1.40. Patients and their families are supposed to provide things like a bowl, a spoon, towel and soap. Food tickets for meals cost about $2.20. (The system reminds me a bit of the last flight I took on a low-cost airline in Europe.)

This account doesn’t take us down into the pharmacy, which in many ways is a much more wrenching economic experience than the hospital itself. With the end of much government support for the hospitals, the pharmacies attached to hospitals have become major profit centers. Pharmacies are allowed to charge a 15% markup over the wholesale prices of drugs.

That doesn’t seem like much. But pharmaceutical sales provided 43% of revenue at China’s general hospitals in 2005, according to a 2009 paper by Meredith Wen, “Averting Crisis: A Path Forward for China’s Healthcare System.” In that same year, government funding provided almost 7.4% of general hospital revenue. That figure had been 10.2% in 2002.

Siggins is very positive about the care he received — and frankly it sounds remarkably good in comparison with much of the developing world and to many places in the developed world, including some in the United States. But that’s not my point.

Think about living on a household income of $237 a year and knowing that a thing like an infected appendix could bankrupt you. And that without ready money — $100 or so — you can’t get a diagnosis or tests.
Save or die
What would you do? If you live in China, you save like your life depends upon it. Because it does.

Do you really wonder why China’s savings rate is something like 40%? In comparison, the Great Recession, which has caused U.S. consumers to save more, has driven the U.S. savings rate up to 4.2% in July, according to the St. Louis Federal Reserve.

But it’s not just the health care system that works this way. Most Chinese workers now don’t have meaningful retirement plans through their jobs or the government. Many Chinese — certainly the 200 million or so migrant workers who staff China’s export industries but who never get to be official residents of the cities where they work — have to pay out of pocket to educate their kids.

It’s actually remarkable that the savings rate in China is as low as 40%. The government has known about this problem of social insecurity for years. It is a completely predictable result of breaking the iron rice bowl, the government-provided social services that formed the basis of Chinese society until the introduction of “it’s all right to get rich” economics by Deng Xiaoping.

But the decision to devote tens of billions a year to improving health care and providing a minimal level of health insurance is a remarkable sign that the government actually intends to do something about social insecurity in China.

And the leaders in Beijing are also moving to put money into education and pensions.

If there’s one thing we should have learned by now in the United States, it’s that once you create an entitlement, such as Social Security or the Medicare drug benefit, it’s very, very hard to end it. The Beijing leadership can indeed reverse course more easily than the U.S. Congress or president can (there are some advantages in not running for re-election), but it looks like the entitlement genie is out of the bottle in China for a number of years to come.

Waiting to buy the revolution
What does that mean for those of us who constantly search for ways to invest in China?

It argues strongly that we should stop concentrating on the infrastructure and heavy industry and export-company stock plays that have had such a high profile in China’s recent development.
And that we should start looking, first, at the companies such as Ping An Insurance (PNGAY, news, msgs) or China Medical Technologies (CMED, news, msgs) that will be direct beneficiaries of more government spending on social services.

And, second, at companies that will be the future beneficiaries of a Chinese consumer who isn’t scared silly into saving 40% a year. Companies such as Ctrip.com (CTRP, news, msgs), an Internet travel company.

I wouldn’t rush out and buy these companies or any other name you can think of today. The Chinese stock market is ludicrously expensive at the moment. That will fix itself. Chinese stocks are incredibly volatile, and lower prices will come to he or she who waits.

And you’re not in any hurry. This revolution in China’s economy is just getting started, and it has a long way to run. – MSN Money and MoneyShow.com

]]> 4418 2009-10-01 00:59:20 2009-10-01 07:59:20 open open another-revolution-coming-in-china publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6493#comments wfw:commentRSS http://zikkir.com/business/6493/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6493 syndication_item_hash 1b3320a202ae3d1882d372f9b7137494 30 fabulous freebies http://www.ethiopianreview.com/business/4417 Thu, 01 Oct 2009 08:08:23 +0000 http://zikkir.com/business/?p=6495 Close your wallet — your money’s no good here. Check out these 30 valuable goods and services that won’t cost you a penny.

It’s been said that the best things in life are free — and we couldn’t agree more. That’s why we’re back with our third annual list of our favorite freebies.

We looked for primo goods and services (no useless junk allowed). And boy, did we find ‘em, from financial management and planning help to entertainment and vacation freebies.

We’ve laid out our list in text format below for easy printing or e-mailing.

Go ahead. Embrace your inner tightwad. And share your own fabulous freebies with others in the comment area below.

1. Free video games

If you’re looking for games for the kids — or an excuse to act like a kid yourself — head to Kongregate, PopCap Games, Pogo.com and OnlineFlashGames for thousands of free online and downloadable games of all types.

For educational or just-for-fun games suited to young kids, check out PBS Kids, Discovery Kids, NickJr.com and Scholastic.com.

2. Free birthday goodies

A slew of businesses will give you prime freebies on your birthday that almost make getting older worth it. For instance, anyone can get free admission to Disneyland or Disney World in 2009. Join the birthday club at Toys R Us and your child (younger than 10) will get a free toy or gift card every year.

If you sign up in advance to join the club at your favorite eatery, you could score free food on your birthday. For example, you can get a free meal at Famous Dave’s BBQ and free ice cream at Cold Stone Creamery and Baskin Robbins. Search the Web for “birthday freebies,” then call your local restaurants to ask whether they participate in the deal. For more, see “20 freebies for your birthday.”

3. Free shipping

Special delivery! Some retailers still offer free shipping on every order, including Alyssa Basket Designs (special-occasion gifts), Blue Nile (jewelry), Piperlime (shoes), Shopbop.com (clothes) and Zappos.com (shoes).

Many online merchants offer free shipping if you can pick up the item at your local store, including Wal-Mart, Payless and REI. This comes in handy for online-only items, oversize purchases or goods that have sold out at your local store. Or, look for free shipping deals when you spend a certain amount, such as orders over $25 at Amazon.com. See FreeShipping.org for more deals.

4. Free software

For most of your computing needs, you can get free software. For word processing and spreadsheets, go to OpenOffice.org. For anti-virus protection, head to AVG. For free basic photo editing, check out Picasa, or for more advanced touch-ups, try Gimp. And to manage your finances, use the free programs at Mint.com or Wesabe.

5. Free stock trades

At Wells Fargo, you get 100 commission-free online trades per year if your cumulative account balance is $25,000 or more (including your Wells Fargo checking and savings accounts, certificates of deposit, IRAs and brokerage accounts).

Also, Zecco offers 10 free trades per month if you have $25,000 in your brokerage account.

6. Free credit report

By law, you’re entitled to one free report once a year from each of the three main credit bureaus. Go to AnnualCreditReport.com to find out what lenders can see about your credit history. See “Raise your credit score to 740″ for advice on what to do next.

7. Free TV and movies

Head online to watch free episodes from hundreds of TV shows — old and current — as well as free movies. And it’s perfectly legal.

At OVGuide you’ll find a list of TV and movie sites including Hulu, Veoh and Fancast, as well as individual network Web sites, such as ABC and CBS. (See “R.I.P., cable TV?” for more info on free and cheap home entertainment.)

8. Free ATMs

A buck or two here and there may not seem like a big deal, but if you’re frequenting ATMs outside your bank’s network, the surcharges can add up quickly.

Get money from an ATM that belongs to a surcharge-free network. Allpoint has about 200 participating institutions and 32,000 ATMs. MoneyPass has 600 members and 8,000 ATMs.

9. Free (and risk-free) interest

Many banks offer free savings accounts, but they won’t help your money grow. Instead, use a high-yield online savings account for your short-term savings, such as ING Direct, HSBC Direct or Emigrant Direct. They’re FDIC-insured and were recently paying around 1.3%. They have no minimum-balance requirement, so you earn that rate whether you have $1 or $100,000 saved.

And consider the free interest-bearing checking accounts from ING Direct and EverBank. They’re also FDIC-insured and were recently paying between 0.25% and 1.96%, depending on the balance in the account. (Most traditional banks’ free checking accounts pay you nil.)

10. Airline freebies

Airlines may be scaling back their perks, but some still have freebies for fliers. For instance, Southwest lets you check two bags for free, while most others charge for luggage. JetBlue lets you check one bag free, plus gives you access to free TV, satellite radio and all-you-can-eat snacks. Continental still serves free meals on several routes. And all kids under age 2 can fly free on your lap on any airline.

Don’t forget about the free flights you can score by signing up for an airline’s frequent-flier program (enrollment is also free). See the program guide at WebFlyer for the lowdown on each airline’s rules.

11. Free money for grad school

On average, a year of graduate school costs $28,375 for a master’s degree at a public school and $38,665 at a private school. But free money abounds, from grants and scholarships to assistantships and fellowships.

See “How to find free money for college” to learn more.

12. Free rewards

You have to buy groceries and gas anyway, so why not use those purchases to get a little more green in your wallet? Sign up for a rewards credit card and get free money, gift certificates, airline miles or other perks. (Of course, it’s free only if you pay the balance in full each month without incurring interest charges.)

When you have to make a purchase online, start at BondRewards to earn another cool freebie: You click on an affiliated online retailer (there are hundreds) to do your shopping as usual, and a percentage of your purchase is given back to you in your BondRewards account. You then redeem your rewards for U.S. savings bonds or cash.

13. Free financial advice

Not to toot our own horns (OK, maybe just a little), but Kiplinger.com and MSN Money are treasure-troves of free financial advice. Use tools and calculators to get on the right financial track.

14. Free mobile apps

You spent all that money on a new iPhone. Now download some free apps to help you save money and recoup the cost. For instance, the free Mint.com or Quicken apps help you track your spending and manage your money and investments on the go. ATM Hunter can help you find a surcharge-free machine near wherever you are. And iShop can help you search for the lowest price on an item before you buy.

There are plenty of other useful applications at the iTunes App Store, with free recipes, weather updates, diet help, music, games and more.

15. Free books, movies and music

If you haven’t been to the public library lately, dust off your card. It’s your ticket to mounds of free books, magazines, CDs and movies.

Many libraries also offer free lectures, book readings and community clubs to residents.

16. Free online bill-paying

Stop paying your bills by check and put those payments on autopilot. At many banks, you get free bill paying with every online checking account. (Be sure you read the fine print — some banks may require you to maintain a certain balance in your checking account to get the freebie.)

But even if your bank doesn’t give you this freebie, you can probably arrange for automatic bill paying directly with the parties sending the bills, such as your utility, credit card, phone and mortgage companies.

17. Free kids’ meals

Yes, there is such a thing as a free lunch — or dinner. Kids eat free at Denny’s, Lone Star Steakhouse and Roadhouse Grill every Tuesday night (and some Saturdays) with a paying adult. IHOP, Golden Corral, Marie Callender’s and Chevys restaurants offer kids-eat-free deals at select locations.

You can search for eateries in your area at KidsMealDeals.com.

18. Free digital storage space

With free online backup storage, you can protect your important files and photos from computer crashes, theft or natural disaster.

For instance, SpiderOak and MyOtherDrive each give you 2 gigabytes of free and secure digital storage space. You can also store your cherished photos and videos at sites such as Photobucket and Flickr. Print-ordering sites such as Snapfish, Shutterfly or Wal-Mart also allow you to store photos as long as your account is active.

19. Free tech recycling — with benefits

Not only is it getting easier to keep your old electronics out of the landfill, but you may even get some free cash in exchange. Services such as BuyMyTronics.com, Gazelle, MyBoneyard and GreenPhone.com recycle or refurbish your old tech and send you a check in return. They take cameras, cell phones, MP3 players, game consoles and more.

If you can’t find anyone willing to pay for your dinosaur, look for other free places to recycle. For instance, Best Buy will take many of your tech castoffs at no charge. And keep your eyes open for free e-recycling days in your city.

20. Free capital gains

Who wouldn’t love to let their investments grow 100% tax-free? Take a pass on paying capital-gains taxes by investing in a Roth IRA. Any money you put into your Roth grows tax-free, and you won’t owe Uncle Sam a dime when you cash out in retirement. It’s all yours.

21. Free tour guides

To get a real feel for a city when you’re traveling, team up with a local. The Global Greeter Network organizes volunteers in several cities worldwide to show you around, give you the inside scoop and answer your questions. Tours can last a couple hours or longer, the service is free, and there’s a strict no-tipping policy.

Cities include New York, Houston, Chicago, Paris, Buenos Aires, Melbourne and Toronto. (See the full list.)

22. Free culture

You can visit many museums, galleries and other attractions nationwide for free on special discount days or during certain hours. The Metropolitan Museum of Art in New York, for example, offers free admission every Friday from 4 p.m. to 8 p.m.

Some top-notch attractions are free every day of the year, such as Chicago’s Lincoln Park Zoo, the Baltimore Museum of Art, the St. Louis Science Center and the Getty Center in Los Angeles. And many college campuses host free concerts and student art exhibits.

23. Free financial planning

At Voyant, you can get a free personalized picture of your finances without shelling out thousands of dollars for a session with an adviser. You can map your financial goals, such as buying a home or saving for your kids’ college, along an interactive timeline, and test what-if scenarios quickly.

It may not replace the service of a financial planner, but it’s a helpful way to get a general idea of your finances and benchmark your progress. And did we mention it’s free?

24. Free recipes

Not sure what’s for dinner? The Web is your oyster. Allrecipes.com and Epicurious are perennial cook favorites. Together, they boast more than 100,000 recipes.

You can search by ingredients, meal or occasion, read user reviews, watch cooking-demonstration videos and even save your favorite meals in virtual recipe boxes. Who needs to spend money on cookbooks?

25. Free charitable giving

You don’t have to give money to help those less fortunate. Volunteering your time won’t cost a dime. Search for opportunities in your neighborhood through VolunteerMatch, Idealist.org or Network for Good. Donating blood is another great way to give for free.

Or click your support. At The Hunger Site, you click a button and advertisers donate a penny or two to charity. At FreeRice, you answer quiz questions, and for each one you get right, sponsors donate rice through the United Nations World Food Program. These seemingly small donations can really add up.

Also see “How to tell good charities from bad.”

26. Free place to stay

Traveling? Consider trading spaces. Hospitality exchange Web sites are growing in popularity. You can network to trade homes with someone who wants to visit your town, or even take turns hosting each other.

Some popular sites that specialize in connecting members with free places to stay include CouchSurfing International, International Home Exchange Network and Intervac. See “Free Getaways Around the World” to learn more.

27. Free workouts

You don’t need to shell out for a gym membership to stay fit. Walking or jogging in your neighborhood doesn’t cost anything. You can also hit your local library to check out free fitness DVDs, from aerobics to yoga.

To encourage public health, some cities have free outdoor gyms for teens and adults at local parks. For instance, at several “fitness zones” around the Los Angeles area, residents can use free equipment for strength training, flexibility and cardio workouts.

28. Free music

For a free way to get your groove on, try Pandora. Type in a favorite song or artist and this online music-streaming service will play similar tunes it thinks you’ll like. It’s a fun way to discover new music. You will have to listen to the occasional ad — but they’re super-short and infrequent. Pandora gives you 40 free hours of listening per month.

Slacker is another good (and free) music-streaming site. You’ll also have to listen to a brief ad here or there, but there’s no time limit on your free listening.

29. Free directory assistance

Save a buck or two and dial 1-800-GOOG-411 next time you need directory assistance. Google’s free phone service will connect you with the business you’re looking for, and there are no ads to listen to. However, it doesn’t offer residential listings yet.

You could also dial 1-800-FREE-411 for business and residential directory assistance, but you may have to listen to a short ad.

30. Free e-books and sheet music

When copyrights expire on books and music, the masterpieces become public domain. That means you can get your hands on classic texts and sheet music for free — and it’s completely legal.

For instance, at Project Gutenberg, you can download more than 30,000 e-books, including works by Jane Austen, Charles Dickens and James Joyce. At Google, you can search the text of 7 million books (even those that are still under copyright). And at the Mutopia Project, musicians can print sheet music by more than 250 composers, including Mozart, Bach, Tchaikovsky and Joplin. – MSN Money and Kiplinger

]]> 4417 2009-10-01 01:08:23 2009-10-01 08:08:23 open open 30-fabulous-freebies publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6495#comments wfw:commentRSS http://zikkir.com/business/6495/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6495 syndication_item_hash 37138f0243092e942ac7b3bbfb2a9e2c When you’re too broke for the basics http://www.ethiopianreview.com/business/4438 Thu, 01 Oct 2009 08:14:25 +0000 http://zikkir.com/business/?p=6497 Your tax dollars and donations have helped underwrite a vast network of aid, including food, shelter and health care. Now that you need it, how do you find it?

Remember free government cheese? These days, we have free government cell phones.

You read that right. A group funded by phone companies’ universal service fees helps low-income Americans get phone service. This sometimes includes a prepaid cell.

This is just one of many public and private organizations that can help you meet basic needs — from groceries to lifesaving medications — for free.

These are programs that, as a taxpayer, you’ve helped underwrite. Just about everyone knows about food stamps and federal housing vouchers. But not everyone knows about those free cell phones or programs that provide:

* Eye exams and glasses.
* Rent assistance.
* Birth control, Pap smears and mammograms.
* Free shoes.
* Business attire for job seekers, both female and male.

Where do you find this kind of help? Read on.

Hungry for help

The Supplemental Nutrition Assistance Program, colloquially known as food stamps, is serving more Americans than ever: One in nine of us were using the program in March. To learn about SNAP and other federal food programs, including Women, Infants and Children, or WIC, and school lunches, click here.

Incidentally, that infamous Reagan-era government cheese was part of the Commodity Supplemental Food Program. The current food list doesn’t include dairy products.

Feeding America, formerly known as America’s Second Harvest, maintains a state-by-state list of food banks and soup kitchens. If more than one is available and you’re broke, visit them all; every dollar you don’t spend on grub can help pay rent or utilities.

Additional strategies:

* A food bank may give “first pick” to clients who volunteer.
* Check for edibles on The Freecycle Network. I’ve seen garden produce, tree fruit, infant formula, canned goods, cereal and even pet food offered.
* Some social-service organizations provide coffee and/or donated pastries or bagels to clients while they wait. If times are really tight, there’s your breakfast or lunch.

A place to lay your head

Waiting lists are long for the federal government’s rental assistance program. Some cities aren’t taking new applicants for Section 8 housing vouchers. Be prepared to wait.

If you’re out of work and eviction is imminent, call United Way’s 211 referral line or a nonprofit such as the Salvation Army and be specific, such as: “Starting the first of the month I have nowhere to live.” Because so many others are in the same predicament, you may not be able to get immediate help.

Get a list of all regional shelters. Check whether any churches let homeless people spend the night. If you have a disease or chronic condition, ask allied agencies about special housing.

Note: Any cash assistance you receive probably won’t cover more than a room in a boardinghouse or a down-at-the-heels motel. But that still beats sleeping in a culvert.

Additional strategies:

* Work it off. Ask your landlord for a rent reduction in exchange for landscape work, cleaning the building, etc. Use this experience to apply for a resident manager job somewhere else. For more tips on free flops, see “How you can live rent-free.”
* Put the word out among friends, asking for just one night per couch. Sing for your supper while you’re there — baby-sit, clean the tub, change the litter box. If you’re useful, you might get asked to stay longer.

Staying warm, staying connected

Candles are not a safe substitute for electric lights. Ask your local utility about special rates for low-income residents. Your state’s public utility commission can give information on policies such as a moratorium on shut-offs during winter.

The Low Income Home Energy Assistance Plan provides utility funding. Social-service agencies and nonprofits such as the Society of St. Vincent de Paul may also offer help with water, electricity or furnace fuels.

Your phone company likely offers a bare-bones plan for low-income customers. Some states offer additional assistance with phone funds; click here to find out more.

That Lifeline Across America program provides either a free cell phone or monthly savings on a land line, depending on where you live. You may also be able to borrow up to $200 worth of installation fees, interest-free. To find out how to apply, click here.

The Internet is no longer a frill. It’s terrifically useful to job seekers who can post résumés, scan want ads nationwide and network with other unemployed folks. Web sites such as Freecycle and Craigslist can help you score freebies ranging from baby clothes to gleaned fruit. E-mail keeps you connected with family and friends.

Cheap Internet services are out there, but be sure to read the fine print. Say so long to the bells and whistles, though, and get used to dial-up. (You’ll live.) The public library may have public computers, but access is often limited; at my library you get 30 minutes a day.

Have a laptop computer? Seek out free Wi-Fi, also available at many public libraries. Coffee shops, casual restaurants and bars offer the service, but this is awkward if you can’t afford to buy anything. Some places are kicking out Wi-Fi users who don’t pay the freight. If you were a loyal customer before your finances went south, a friendly manager may give you a break.

Or seek out other hot spots with Web sites such as the Wi-Fi FreeSpot Directory. A few searches turned up free Internet access in a pedestrian mall in Montana, a coin laundry in New Jersey and a supermarket in Alaska. You might be able to surf for hours.

Additional strategies:

* Some colleges and universities offer Wi-Fi in common areas.
* Because you can’t afford cable, take your laptop (and your headphones!) to a free Wi-Fi spot and watch TV online.
* If you’re threatened with phone disconnection because of late payments, ask for “toll blocking,” or local service only, until you catch up.

For the health of it

Public health and community health centers offer care on a sliding scale. That may mean “free” if you’re in sad financial shape. Sometimes the medications are free, too. To find a community health center or public health clinic in your area, click here.

Your kids may be eligible for free health insurance, including dental care, through the Insure Kids Now initiative. Some service organizations sponsor health giveaways. For example, Rotary clubs underwrite weekly health clinics in some cities, and many Lions Club chapters pay for hearing aids, eye exams and glasses. Contact local chapters to find out what’s available.

More than three-fifths of Planned Parenthood clients use the family planning center as their primary health care provider. This includes women who are past childbearing age but still need annual exams plus blood-pressure checks, cholesterol screenings and other tests. Care is on a sliding scale, which could mean free. You can usually get free condoms there, too. To find a clinic, click here.

Sight for Students provides eye exams and glasses for uninsured youngsters. The Vision USA program offers free exams to low-income people with no insurance. EyeCare America incorporates several free-care projects, including help for people with diabetes and glaucoma.

Most pharmaceutical companies offer patient assistance programs for low-income people. Organizations such as NeedyMeds, the Partnership for Prescription Assistance, the Chronic Disease Fund and the Bureau of Prescription Help can get you started.

The HealthWell Foundation helps with co-pays and insurance premiums for people with certain chronic or life-threatening illnesses. The Patient Access Network Foundation offers the underinsured co-pay assistance.

Additional strategies:

* Doctors often get free prescription samples. Ask if samples of your medication are available.
* Walgreens and CVS drugstores offer free flu shots, free basic health screenings and free treatment for minor ailments. Certain conditions apply; click here for more information.
* Your city or county health department may offer well-baby checkups, immunizations and other basic preventive care, including screenings for sexually transmitted diseases.
* The National Breast and Cervical Cancer Early Detection Program offers screenings that may be free. Click here to see whether you qualify.

As I noted in “Swallow your pride — and seek aid,” these programs are set up to help those in need. If you’re having trouble keeping yourself housed, fed and healthy, accept a little aid for the short term. You can give back later — but first you have to get through today.
In search of services

To learn about more than 1,000 federal programs — everything from child care to tax prep — go to GovBenefits.gov.

Then check the “community services” pages in the front of the phone book. You’ll see local, state and federal agencies, plus programs run by nonprofits such as the American Red Cross, Catholic Charities and the Salvation Army.

Your city may also have a 211 phone number, a clearinghouse whose employees can direct you toward many types of assistance. About 80% of the country has 211 service, according to United Way spokeswoman Sal Fabens.

Last year there was a “marked increase” nationwide in the number of calls for basic necessities, Fabens said:

* In 2007, there were 1,942,193 calls for help with housing and/or utilities. In 2008, the number was 3,163,744.
* In 2007, there were 1,252,050 calls for help with food. In 2008: 1,716,650.

If there’s no 211 service in your community, or even if there is, keep looking. Do an online search for social services both regional and national. You’ll likely find that some programs are swamped. Yet even if an organization can’t help it may refer you to others. Ask and keep asking.

Food banks often become de facto social-service clearinghouses. Francis Aviani of the St. Anthony Foundation in San Francisco says these pantries “have a very good (grasp) of other agencies in the community.”

The St. Anthony Foundation offers numerous resources: hot meals, medical care, social workers, a food bank, clothing giveaways, Internet access and drug/alcohol rehab. You may be lucky enough to have a place like this near you. If not, you may need to contact more than one agency.

Additional strategies:

* Ask what documents are required, so you don’t have to make a second trip.
* Don’t just ask, “What time do you open?” Find out what time people start lining up, whether there’s a sign-up sheet, how many days a week a program is offered, etc.
* Talk to other people waiting in line. They may know of other agencies that can help you.
* Religious organizations often provide help — some with proselytizing, some without.

Save money today
Blue-collar paté: “Who’s got a good meatloaf recipe?” was the question posed by a Smart Spending message board reader. Caution: Reading this thread may make you hungry.

What’s a label worth? “Slash your grocery bill with store brands,” suggests Smart Spending partner blogger J.D. Roth of Get Rich Slowly. Good idea.

Dig yourself out: The Dough Roller, another Smart Spending partner blogger, offers us “23 tips and tools to eliminate debt.” – MSN Money

]]> 4438 2009-10-01 01:14:25 2009-10-01 08:14:25 open open when-you%e2%80%99re-too-broke-for-the-basics publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6497#comments wfw:commentRSS http://zikkir.com/business/6497/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6497 syndication_item_hash 3860ea713e4234229d31885b260d158a Is lavish CEO pay on the way out? http://www.ethiopianreview.com/business/4437 Thu, 01 Oct 2009 08:24:12 +0000 http://zikkir.com/business/?p=6499 Shareholder advocates are gaining ground in the battle against exorbitant salaries and perks, with some big companies endorsing change. But will they follow through?

In boardrooms across the country, paymasters are sitting down to the annual autumn ritual of deciding how many goodies the top brass will enjoy in 2010 — in the form of pay, options, stock and often-extravagant benefits.

The good news for shareholders: They’re doling out the billions a little more slowly this year.

Pay experts privy to the negotiations say compensation committees are shying away from the huge raises that were par for the course during the go-go years of the credit bubble. They’re also trimming the perks.

And most importantly for shareholders, they’re trying harder to link executive rewards to long-term company results, as opposed to letting options and stock grants kick in merely because execs keep their seats warm.

One important sign: The Conference Board, an influential watchdog group, released executive-pay guidelines last week that reflected much of what advocates have wanted for years — and a number of major companies endorsed them.

“I am very optimistic,” says Hye-Won Choi, the head of corporate governance at TIAA-Cref, a privately held pension fund that has been using its clout as a huge shareholder to gun for more-rational executive pay for years.

Still, the question is how many companies will not just endorse guidelines but follow through.
The outcry is heard
You can chalk up the change to a vast public outcry against outrageous executive pay over the past few years, which has more recently had the politicians in Washington hopping on the bandwagon. Critics are driven partly by the widespread belief that pay packages helped cause the financial meltdown by encouraging CEOs to take excessive risks so that they could pocket billions in a hurry, never mind the consequences.

Indeed, the image of executives such as Countrywide Financial’s Angelo Mozilo and Lehman Brothers’ (LEHMQ, news, msgs) Richard Fuld millions right up until their institutions collapsed, may have been the last straw. (Read “As banks broke down, CEOs cashed in.”)

“We have seen a number of directors step up and say, ‘We have to reconsider our past practices, and it’s time for a change,’” agrees Rich Ferlauto, who manages pay-reform efforts and other shareholder activism for the American Federation of State, County and Municipal Employees. “The message is getting through.”

Of course, lasting change is no sure bet. Executives have come to expect rich pay — astonishingly, even when they’re demonstrably not good at their jobs. They also feel entitled to a steady parade of perks and payouts, even absurd ones such as the big payments upon death known as “golden coffins.”

So the pay committees on corporate boards face some tough choices, stuck as they are between a public drumbeat for change and their buddies in the corner offices whose pay they set.

“It’s not easy being on the compensation committee these days. It ranks up there with the cable guy,” quipped Doug Friske, a compensation consultant with Towers Perrin, at an Equilar conference on executive comp in New York last week.

Some experts even predict CEO pay reform will get swept under the rug if the economy recovers enough so that the public is distracted from reform. “If the economy comes back, it will wash away the issues,” predicts Ira Kay, a compensation consultant with Watson Wyatt.
3 signs of real change
Still, I’d cite the following signs that change on pay is afoot in the boardroom:

* Shareholder activists in the trenches are noticing a difference. “Companies are paying much greater attention to how they incentivize executives,” Choi says. As the head of corporate governance at TIAA-Cref, Choi is in on the conversation between companies and shareholder activists — like her pension fund. She says boards this year are listening a lot more closely to activists and not just responding to the wishes of management. “That’s the trend. We are seeing it in our conversations with the companies we own,” Choi says. She predicts that one outcome will be pay packages that create better links between pay and long-term results — a plus for shareholders.
* Pay consultants, who are in on the conversation as well, tell me the same thing. “Compensation committees are more conservative than a year ago,” says Irving Becker of the Hay Group. “They are less willing to do things that in the past would have been considered aggressive.”
* Companies are signaling they’re in the mood to reform, probably because it’s better to make changes on their own than let Washington do it for them. The Conference Board’s proposed executive-pay guidelines include things such as better links between pay and performance, and cutbacks in overly generous golden parachutes, perks and death benefits.

It’s encouraging that many companies have agreed to the guidelines. They include AT&T (T, news, msgs), Cisco Systems (CSCO, news, msgs), Hewlett-Packard (HPQ, news, msgs) and Tyco International (TYC, news, msgs), and you can expect more to come. “A number of very large companies will be signing on shortly,” says Paul DeNicola, the director of The Conference Board’s Governance Center.

Of course, agreeing to principles is not a binding obligation. But companies don’t do this lightly because it will be a “potential source of embarrassment” if critics can later point out they’re ignoring the guidelines, says Robert Denham, a partner with law firm Munger, Tolles & Olson. Denham was among the Conference Board advisers who wrote the guidelines.

The California State Teachers’ Retirement System says several companies, including AFLAC (AFL, news, msgs), H&R Block (HRB, news, msgs), Verizon (VZ, news, msgs), Hewlett-Packard, Apple (AAPL, news, msgs) and utility PG&E (PCG, news, msgs) have signed off on its pay guidelines (read the news release here). And a group of more than 100 independent members of corporate boards called the Independent Directors’ Executive Compensation Project recently signed off on a similar set of pay guidelines.

“All of this seems to suggest that corporations have woken up to the fact that if they don’t clean up their own house, someone is going to clean up for them,” says Paul Hodgson, a pay expert with The Corporate Library.
The changes to watch for
If these signs of change are real, companies will have to follow through on promised changes like these:

Fewer perks. Compensation consultants call them “the irritants.” They’re the perks like private use of the corporate jet, exclusive club memberships and even handouts to cover the taxes on these things that pay critics and the media point to as absurd examples of excess. “A lot of these are going to be going away because they’re too embarrassing,” predicts Kay, of Watson Wyatt.

The problem is, companies will be tempted to simply raise pay to executives by an equivalent amount and let them buy these things on their own.

Smaller golden parachutes. Juicy golden parachutes, which guarantee big severance payments if things go bad, make some sense because they’re needed to attract execs away from other jobs.

“You need to offer that protection, but do you need it forever?” asks Becker, of the Hay Group. “Maybe it should only last for two or three years.”

Widespread change here could take years, as it will have to be worked into the contracts of new hires. Execs in place now aren’t going to give up these perks easily.

More pay linked to long-term performance. Companies are promising to link more pay to a company’s long-term performance. But you have to watch carefully, says pay consultant Mark Van Clieaf of MVC Associates International.

He thinks it’s astonishing that most public companies still use a three-year time frame, at most, for gauging performance pay.

“You can’t do anything of a material nature in terms of new products or new ideas in that amount of time,” says Van Clieaf. Instead, he says, companies need to link performance to a four- to seven-year time horizon and specify that performance pay must be linked to new products and new business.

He cites General Electric (GE, news, msgs), DuPont (DD, news, msgs), Texas Instruments (TXN, news, msgs) and American Express (AXP, news, msgs) as companies that are getting this right.

Here’s another approach to look for: At least one bank, UBS (UBS, news, msgs), is keeping a portion of performance pay in house in a “bonus bank” for a while so it can withhold the money if it turns out the reward was based on short-lived results.

More modest pay increases. All told, executive pay in 2009 will probably contract 10% to 30% at larger companies because bonuses will be smaller and stock grants lower, Becker says. For 2010, he predicts pay will head back up but at a lower rate than before the meltdown because of a “more conservative approach to executive pay.”

Don’t get your hopes up too high, though. In 2008, one of the worst years on record for corporate performance and the stock market, salary and bonuses alone for CEOs at 2,700 companies tracked by The Corporate Library declined by less than a 10th of a percentage point, says Hodgson. One reason: Even though bonuses were lower, boards “came up with ways to justify awarding cash incentives,” he says.

Given that companies pulled off this trick, we still have to wait to see whether any of the reforms promised for 2010 come to pass.

One troubling sign: At least a few pay consultants who work in a profession that helped create this egregious pay system over the past few years — and who are advising the paymasters on reform efforts now — don’t really seem to have their hearts in dismantling it now.

Friske, of Towers Perrin, told me last week that he doesn’t really see the system as being broken, “so why does it need to be fixed?”

And at the Equilar pay conference last week, Watson Wyatt’s Kay had an even more cynical take: “We’re never going to satisfy the public,” he told other pay advisers attending the meeting. “So we shouldn’t even try.” – MSN Money

]]> 4437 2009-10-01 01:24:12 2009-10-01 08:24:12 open open is-lavish-ceo-pay-on-the-way-out publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6499#comments wfw:commentRSS http://zikkir.com/business/6499/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6499 syndication_item_hash b0113b79cf78333460555aadd4e88e31 7 tips for a preapproved mortgage http://www.ethiopianreview.com/business/4436 Thu, 01 Oct 2009 08:27:08 +0000 http://zikkir.com/business/?p=6501 Having a letter of preapproval can remove a lot of obstacles to homebuying, but the process isn’t as simple as it used to be. Preparation and caution are advised.

During the height of the real estate boom, getting a mortgage was as easy as picking out a new coffee table for the living room. Now, homebuyers have to jump through rings of fire before they can sign on the dotted line.

Today, the first step in landing a home loan is obtaining a letter of preapproval. This means a mortgage lender has verified that you’re approved for a mortgage of a certain amount over a fixed time frame.

Preapproval letters are prepared even before you’ve picked out your home. They remove some of the uncertainty in the homebuying process. In the current housing market, real estate agents and sellers won’t want to work with buyers unless they have one.

“Before you even get in my car, you want to get preapproved,” says Gerry Bourgeois, a real estate broker and president of Towne & Country Realtors in Leominster, Mass.

With a letter in hand, buyers know exactly how much they can borrow — and therefore how much house they can afford. A preapproval letter shows the seller and the seller’s agent that the buyer is capable of buying their house. “For most sellers, the issue is not whether they can get an offer, but whether they can close the deal,” says Tara-Nicholle Nelson, a real estate broker in Oakland, Calif.

Agents see preapproved buyers as more serious (and more valuable) because they’ve taken proactive steps to secure a preapproval. When it’s time to make an offer, a preapproved buyer will be in a better position to negotiate.

Here’s what homebuyers need to know about the new rules of mortgage preapproval.

Shop around, and shop early: When seeking preapproval, talk to a few mortgage lenders to find the best mortgage package that suits your needs. Two or three lenders is customary, says Brad Blackwell, a national sales manager at Wells Fargo Home Mortgage in Danville, Calif. More aren’t necessary to get a good deal because loan packages are generally very similar and pricing tends to be comparable, he says.

And consult with lenders before you start house-hunting. This way, you’ll know how much you can borrow — and which houses are in your price range, says Ann Stickel, vice president of affiliated services at Michael Saunders and Co., a real estate brokerage in Sarasota, Fla.

Prepare your financial biography: Getting preapproved means a lender must review and verify your income, credit and assets to ensure you could make the necessary monthly payments on a house. In the wake of the housing bust, borrowers must be more forthcoming when it comes to their finances, Stickel says. Your lender should tell you precisely what you need, but be prepared to include:

* W2 statements (or 1099 income statements) for the last two years.
* Federal tax returns for the last two years.
* Bank statements for the last few months.
* Recent pay stubs and proof of other income.
* Proof of investment income.

Know you’re not obligated to one lender: Preapproval doesn’t bind you to a particular lender; it’s just a promise — albeit, a conditional one — that the lender is willing to make the loan. The buyer isn’t obligated to borrow from that lender.

Don’t expect a rate quote: A preapproval will stipulate the loan amount or monthly payment but not necessarily the loan type or rate. When you apply, lenders use that day’s mortgage rates to estimate costs and payments. “Just don’t expect them to keep the same rate they preapproved you with as the actual rate that will be available when you find a property and sign a purchase contract,” says Danny Valentini, a senior vice president and regional manager at Homeservices Lending, a mortgage lender in San Diego.

Keep an eye on your credit score: Usually, a loan inquiry can ding your credit score. If you applied for a bunch of credit cards within a short period of time, for example, your FICO score might fall. (Most lenders use some version of the FICO score to determine your eligibility for credit and what interest rates and other terms they should extend to you.)

But the credit-scoring models are designed to allow for mortgage loans. The score ignores mortgage, auto and student loan inquiries made during the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping, according to MyFico.com. Also, the score looks at your credit report for mortgage, auto and student loan inquiries more than 30 days old. If it finds some, it counts those inquiries that fall in a typical shopping period as just one inquiry when determining your score.

Deal only with a reputable lender: Sellers now are looking much more closely at who the buyer’s lender is. To avoid instances in which the lender might not be able to deliver on the loan, they want to see that any prospective buyer is working with a financially sound and reputable lender, says Blackwell. Most national brokerages and banks have local branches, so buyers should ask a local real estate agent (and the buyer’s agent who is representing them) for recommendations.

To satisfy any doubts you might have about a particular lender, visit the Better Business Bureau’s Web site to find out what kind of reputation they have.

Watch the clock: Preapproval letters — and the documents they verify — have expiration dates. Those dates vary by lender, but the letters are typically valid for 90 days, Blackwell says. If you’re still house-hunting after, say, 60 days, and you’re concerned, ask your lender to revalidate the preapproval letter. Sellers want to be sure the buyer’s financial situation hasn’t changed since the time the lender initially checked them out.

If any part of your financial picture has changed — your credit, job status, income or assets, for example — you should notify the lender so your preapproval can be adjusted. – MSN and SmartMoney

]]> 4436 2009-10-01 01:27:08 2009-10-01 08:27:08 open open 7-tips-for-a-preapproved-mortgage publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6501#comments wfw:commentRSS http://zikkir.com/business/6501/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6501 syndication_item_hash ba561bf62a803fc3d2841c5a7d164df2 2362 87.68.81.152 2009-10-28 08:21:59 2009-10-28 15:21:59 mortgage rates]]> spam 0 0 Retirement? Good luck with that http://www.ethiopianreview.com/business/4435 Thu, 01 Oct 2009 08:31:10 +0000 http://zikkir.com/business/?p=6503 The stock market’s crash has revealed the US retirement system’s holes with painful clarity — and middle-class Americans may be forced to make some big adjustments.

The destructive effects of the financial crisis may be waning, but your retirement account won’t soon forget. Savers lost 40% or more in the downturn — a collective $2.1 trillion disappeared from 401k and IRA assets in 2008 alone — and while the recent stock market recovery may feel good, it’s done little to stem a mounting crisis in the retirement system in the United States.

It’s not just investments that are the problem: Social Security needs financial resuscitation, and the bursting of the housing bubble that helped spark the financial crisis vaporized the home equity many people were counting on to fund their golden years. Corporations are curtailing traditional pensions, and older Americans are being forced to work longer to make up the difference.

Where does this leave our retirement plans? Ask a middle-class American when he plans to retire, and more often than not you’ll get a wry chuckle and “I’ll be working until I die.” The attempt at humor masks what may be close to reality for some people.

The retirement-savings system in the U.S. is “a failed experiment,” said Teresa Ghilarducci, the Bernard Schwartz professor of economic policy at the New School for Social Research in New York.

The U.S. system is “headed for a serious train wreck,” said John Bogle, the founder and former chief executive of the Vanguard Group, in testimony to a House committee hearing on retirement security in February.

Separately, Ghilarducci and Bogle have called for substantial changes to the current system, but even those who like what we’ve got now say it needs improving — and certainly demands better financial education be offered to savers.

“Many people are very overwhelmed with the notion of retirement,” said Gregg S. Fisher, the president and chief investment officer of Gerstein Fisher, a financial advisory firm. “How much do we need to put away? Where should it go? How should I invest?”

Living-standard shock
Of course, people’s retirement outlooks vary widely. Some 20 million workers still participate in traditional pension plans and employers pay pension benefits to millions more retirees (that doesn’t even count government-sponsored public plans), according to Boston College’s Center for Retirement Research.

Those workers are sitting a lot prettier than the more than half of U.S. families that aren’t covered by any kind of pension at their current jobs, according to the Employee Benefit Research Institute, a nonprofit, nonpartisan group. Still, even a well-prepared person may get thrown off by a job loss or unexpected health care costs. (Average medical costs in retirement can run into the six figures even for those covered by Medicare, according to EBRI.)

And those lucky people with traditional pensions likely are wondering how long the money will last as the financial crisis shreds employers’ ability to fund such plans for the long haul. (Read “Companies’ pension problems could hit taxpayers.”)

Defined-contribution plans such as 401k’s have largely taken the place of traditional pensions: 67% of workers say they have a DC plan, up from 26% in 1988, while 31% of workers participate in traditional pensions, down from 57% in 1988, according to EBRI.

But while lower-income workers face a worrisome retirement reality all their own, middle- and upper-middle class workers likely face the biggest living-standard shock. That’s because lower-income people can replace a good chunk of their pre-retirement income with Social Security, and high-income people generally have enough personal savings. But middle-class workers may see their relatively comfortable life change drastically come retirement.

“People in the middle and upper-middle have highly variable rates of savings,” said Eric Toder, a fellow at the Urban Institute, a nonprofit, nonpartisan research center in Washington.

Social Security will take up some of the slack, but the program was never intended to provide full wages. It replaces about 57% of lower-income workers’ pre-retirement wages, about 43% of medium-income earnings and 35% of higher-income earnings. A replacement rate of 70% to 75% usually allows retirees to maintain their standard of living, according to a report by the Center for Retirement Research.

And Social Security’s and Medicare’s financial outlook means that future retirees likely will find the programs pay even less. Without changes, the Social Security trust fund is expected to run out in 2037, and Medicare will be broke by 2017. The financial outlook for both programs has worsened as the recession and 6 million job losses have shrunk tax revenues.

You could argue that whatever system we have now is better than nothing, and before the creation of Social Security in 1935, few people other than government workers had retirement-savings plans. Of course, back then, shorter life spans made retirement savings less crucial.

Combine the growth in private pension plans during World War II with Social Security and you get a veritable golden age of retirement savings, at least for those — never more than about half the work force — who participate in workplace plans.

Now, thanks to the slow death of the traditional pension and the rise of 401k-type plans, one thing is clear: Workers are increasingly responsible for managing their retirement investments. Some say that’s a major problem.

“For 30 years we thought that if we gave people financial advice that over time they would learn something,” Ghilarducci said. “But just as we can’t expect people to excise their own molars or do their own surgery, we can’t expect them to professionally manage their money over a long period of time.”

Others agree risk is an issue. “People are being exposed to risk that they’re not even aware of, and they’re being told don’t worry about it, as long as it’s far in the future everything will be all right,” said Zvi Bodie, a professor of finance at Boston University’s School of Management and co-author of the book “Worry-Free Investing.”

“That’s complete nonsense,” he said. What matters, he said, is the risk that on the day you need the money your investments have tanked.

Change in the air?
The recent market crash is a sharp reminder of what can go wrong. Sure, the S&P 500’s ($INX) almost 35% rebound since March is good news, but it’s not enough to make savers whole. From its peak in October 2007 through last March, the S&P 500 lost almost 49%.

Shave 49% off a $100,000 investment and you’ll need a 96% gain just to get back to even. Younger savers can overcome that hit with time, but it’s a lot tougher for people close to retirement and nigh impossible for retirees forced to pull money out to live on just as the market swoons.

As for tapping into home equity in retirement? While homeowners’ equity did rise in the second quarter, U.S. households lost real-estate wealth for nine consecutive quarters before this second-quarter gain, according to the Federal Reserve. Moody’s Investors Service said recently that it’ll take 10 years before housing prices regain their peak.

U.S. household net worth is down $12.2 trillion from the high in 2007, thanks to the stock market crash and the housing market meltdown.

The retirement-savings crisis is not going unnoticed. The Obama administration, the AARP and many academic researchers, see automatic workplace-plan enrollment as the first step to pumping up retirement savings. Forcing workers to opt out of their 401k’s rather than waiting for them to opt in dramatically raises participation rates (inertia leads most people to stick with the plan).

The president has proposed at least two retirement-savings laws (Congress has yet to act on either). With “automatic IRAs,” employers who don’t offer a workplace plan now would enroll workers in an IRA to which workers could contribute via their paycheck. Obama also wants to expand the savers’ credit, which rewards people who put money aside for retirement. (Read “A call to savings” for more.)

Some are calling for more-extreme changes.

In February, Bogle, the Vanguard founder, spoke in favor of defined-contribution plans, but decried the inadequate savings rates and steep costs, among other problems. He called for a Federal Retirement Board to oversee the system and look out for participants’ best interests.

Ghilarducci, the economist, proposes reducing the tax break for 401k’s by lowering the maximum annual contribution to $5,000, then using the tax revenues to create mandatory guaranteed accounts for all. The government would contribute $600 annually to every account; people would contribute 5% of income annually. The government-managed account would belong to the individual and would be in addition to Social Security. Ghilarducci said capping 401k contributions would pay for the plan.

One of Ghilarducci’s gripes with the current system is that retirement-plan tax breaks go largely to higher-income earners; she’d like to see the government’s largesse spread more equitably. Looking at all types of tax-advantaged retirement plans, people with incomes above $104,000 enjoy 80% of the tax breaks, according to research co-authored by Toder, of the Urban Institute.

It’s not hard to find people who disagree with Ghilarducci’s approach.

“The idea of centrally planning peoples’ investment strategies is not appropriate and is going to take away from the beauty of the system, which is really one of self-determination,” said Mike Francis, the president of Francis Investment Counsel in Pewaukee, Wis.

A seismic shift
Currently, he said, people can choose a low-risk, low-return plan (which may require a higher savings rate) or they can take on more risk to get more return.

Plus, in surveys, employees usually say they like their 401k plans. Also, workers can take their 401k to new jobs, unlike traditional pensions. That’s important in economic times like this, Francis said.

“You could argue,” he said, that the millions of people who’ve lost a job in the recession “are meaningfully better off having participated in a defined-contribution program than they would have been in a defined-benefit plan.”

But there’s still that nagging problem: A huge amount of risk is being put on individuals’ shoulders. Bodie says 401k’s are fine as long as savers invest the right way — for Bodie that means not putting essential assets at risk in the stock market.

His choice for retirement plans: Treasury inflation-protected securities. “What anybody wants,” Bodie said, “is a supplement to their Social Security benefits — something that is protected against inflation, is guaranteed for life, and doesn’t have the same political risk as Social Security.”

In the end, it may be that baby boomers simply pay a steep cost for living at a time when defined-benefit plans started disappearing. As the retirement-savings system goes through a seismic shift, young adults today are seeing the mistakes their parents made — most notably, failing to save early and often.

Younger people will “learn a lot of lessons about the stock market. They won’t expect a job for life. They’ll probably be more self-reliant,” said Frank Haines, the chief investment officer with Christian Brothers Investment Services in New York.

“If you can do it at a young enough age, the power of compounding is very, very powerful,” he said. “Unfortunately, it’s the generations in their 30s to 60s who probably weren’t instructed to do that as much as they should have been.” – MSN Money and MarketWatch

]]> 4435 2009-10-01 01:31:10 2009-10-01 08:31:10 open open retirement-good-luck-with-that publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6503#comments wfw:commentRSS http://zikkir.com/business/6503/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6503 syndication_item_hash c28ea4b735792d601d6027de24f3154f Forbes 400: Poor, poor billionaires http://www.ethiopianreview.com/business/4434 Thu, 01 Oct 2009 08:35:23 +0000 http://zikkir.com/business/?p=6505 Because of the recession, almost all of America’s richest citizens are less wealthy this year, Forbes’ annual report finds.

America’s superrich are getting poorer. For only the fifth time since 1982, the collective net worth of The Forbes 400, our annual tally of the nation’s richest people, has declined, falling $300 billion in the past 12 months, from $1.57 trillion to $1.27 trillion.

Faltering capital markets and real-estate prices, along with divorce and fraud, pushed down the fortunes of 314 members and drove 32 plutocrats off the rankings.

Hurt the most: Warren Buffett, America’s second-richest citizen. The Oracle of Omaha dropped $10 billion from his personal balance sheet as shares of Berkshire Hathaway (BRK.A, news, msgs) fell 20% in 12 months. He is now worth $40 billion.

Beating out Buffett for the 16th straight year as America’s richest man is Microsoft (MSFT, news, msgs) co-founder Bill Gates. Sluggish Microsoft shares and declining outside investments pushed the software visionary’s net worth down $7 billion in 12 months. (Microsoft is the publisher of MSN Money.)

Rounding out the top 10 on The Forbes 400: Oracle (ORCL, news, msgs) founder Larry Ellison ($27 billion); Wal-Mart Stores (WMT, news, msgs) heirs Christy Walton ($21.5 billion), Jim C. Walton ($19.6 billion), Alice Walton ($19.3 billion) and S. Robson Walton ($19 billion); media maven Michael Bloomberg ($17.5 billion); and energy titans Charles and David Koch ($16 billion each).
Price of entry falls below $1 billion
The 10 richest Americans lost a combined $39.2 billion in the past 12 months, a 14% decline.

Other big losers include casino mogul Kirk Kerkorian, whose nest egg shed $8.2 billion in the past year. Shares of his gambling giant, MGM Mirage (MGM, news, msgs), have fallen 90% from their October 2007 high.

Also hitting the brakes: Enterprise Rent-A-Car founder Jack C. Taylor. His fortune is down $7 billion in a year as the travel industry has slowed and private-company valuations have fallen.

The biggest gainer is banker Andrew Beal, who tripled his net worth to $4.5 billion by buying up cheap loans and assets as the markets crumbled last fall.

Membership on the list was made easier as the price of admission dropped $350 million, from $1.3 billion last year to $950 million this year, paving the way for 19 newcomers and 19 returnees.

Newcomers to the list include Marvel Entertainment (MVL, news, msgs) chief Isaac Perlmutter, whose net worth soared to $1.55 billion after Walt Disney (DIS, news, msgs) agreed to buy the superhero outfit in August for $4 billion in cash and stock.

Other new members include Bloomberg co-founder Charles Zegar ($1 billion), mapping-software magnate Jack Dangermond ($2 billion) and trading titan Steven Schonfeld ($1 billion).

New member with Madoff ties
Former New York lawyer and accountant Jeffry Picower makes his debut on The Forbes 400 with a net worth of $1 billion. A longtime investor with Bernard Madoff, Picower is likely worth billions more. (He is alleged to have extracted billions of dollars from Madoff’s fund before it collapsed.)

Picower and his foundation are identified in a lawsuit by the liquidator for Madoff’s investment business, who is seeking to recover funds allegedly obtained through “fraudulent activity.” Picower says that if he’d known Madoff was a fraud he would not have transferred money into Madoff accounts.

In December, the Picower Foundation shut down after losing its $1 billion endowment in Madoff’s Ponzi scheme. The charity had given millions to the Massachusetts Institute of Technology, Human Rights First and the New York Public Library. Picower made his first fortune selling medical-device maker Alaris in 2004.
Comebacks, comedowns and deaths
Among those returning is venture capitalist Michael Moritz, who rode Amazon.com’s (AMZN, news, msgs) purchase of online shoe retailer Zappos and surging Google (GOOG, news, msgs) stock back onto the list.

Divorce forced Google exec Omid Kordestani from the rankings, while R. Allen Stanford lost his billionaire status when the feds froze his assets after charging him with allegedly running an $8 billion Ponzi scheme.

Several Forbes 400 mainstays also fell off the list, including former Citigroup (C, news, msgs) czar Sanford Weill, mall developer Matthew Bucksbaum and condo kingpin Jorge Perez.

Six members died, including glass giant William Davidson and newspaper maven Frank Batten Sr.

The Forbes 400 is a snapshot of wealth on Sept. 10, 2009. Gap co-founder Donald Fisher, who ranks No. 296 on the list, died Sept. 27 at his home in San Francisco at age 81.

The 5 richest:
Rank Name Net worth Age Residence Source Bing and learn more about

1

Bill Gates

$50 billion

53

Medina, Wash.

Microsoft (MSFT, news, msgs)

The founding of Microsoft

2

Warren Buffett

$40 billion

79

Omaha, Neb.

Berkshire Hathaway (BRK.A, news, msgs)

Warren Buffett’s modest lifestyle

3

Larry Ellison

$27 billion

65

Redwood City, Calif.

Oracle (ORCL, news, msgs)

Larry Ellison’s America’s Cup obsession

4

Christy Walton

$21.5 billion

54

Jackson, Wyo.

Wal-Mart Stores (WMT, news, msgs)

How Sam Walton got his start

5

Jim Walton

$19.6 billion

61

Bentonville, Ark.

Wal-Mart Stores (WMT, news, msgs)

How big is Wal-Mart?

See the full list

5 energy titans:
Rank Name Net worth Age Residence Source Bing and learn more about

9

Charles Koch

$16 billion

73

Wichita, Kan.

Manufacturing, energy

The Koch family foundations

9

David Koch

$16 billion

69

New York

Manufacturing, energy

David Koch’s conservative activism

24

George B. Kaiser

$9.5 billion

67

Tulsa, Okla.

Oil and gas, banking

Kaiser’s efforts to fight child poverty

30

Dan Duncan

$8 billion

76

Houston

Energy

Dan Duncan’s big-game trophies

39

Harold Hamm

$5.8 billion

63

Oklahoma City

Continental Resources (CLR, news, msgs)

Harold Hamm’s wildcatter roots

See the full list

No longer billionaires:

Name Age Source Bing and learn more about

Sanford Weill

76

New York

Citigroup

Weill’s big-dollar severance package

Frank and Lorenzo Fertitta

47 and 40

Las Vegas

Casinos, Ultimate Fighting Championship

Brothers’ bet on Ultimate Fighting

Jorge Perez

60

Miami

Real estate

Developer’s fund-raising for Democrats

Peter Thiel

41

New York

Clarium Capital

PayPal founder’s Libertarian beliefs

R. Allen Stanford

59

Houston

Banking

The Ponzi-scheme charges against him

See the full list

- MSN Money and Forbes.com

]]> 4434 2009-10-01 01:35:23 2009-10-01 08:35:23 open open forbes-400-poor-poor-billionaires publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6505#comments wfw:commentRSS http://zikkir.com/business/6505/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6505 syndication_item_hash a03b732f4f5bd31dab1df8face263b09 2010: The best year to die? http://www.ethiopianreview.com/business/4433 Thu, 01 Oct 2009 08:38:15 +0000 http://zikkir.com/business/?p=6507 Next year, for one year only, the federal estate tax is to drop to zero, thanks to a GOP bill passed in 2001. But will today’s Democrat-controlled Congress let that happen?

My kids had just sat me down and given me the bad news: I was going to die. They couldn’t tell me what was going to do me in. But I was clearly a goner.

The only thing they could guarantee was the year: 2010. Anytime during the year was OK with them. And they would be financially, if not emotionally, devastated if I was still around Jan. 1, 2011.

Not that they don’t care for me. “It’s not personal, Dad,” my son Josh said. “It’s just business — good tax planning.”

It’s the first time in 30 years they’ve paid attention, and now I’m scheduled for a nondeductible chariot ride into the sky.

They must have read my chapter on the Economic Growth and Tax Relief Reconciliation Act of 2001. That’s the bill in which then-President George W. Bush and Congress slashed income and estate tax rates.

The amount of assets that escaped federal estate taxation increased from $675,000 in 2001 to $3.5 million in 2009. That’s in addition to anything left to a spouse. Rates dropped from a maximum of 55% in 2001 to a maximum of 45% this year.

The best part was scheduled for 2010. The then-Republican-controlled Congress decided that the heirs of anybody who died during 2010 would pay zero in estate tax!

But on Jan. 1, 2011, the estate tax exclusion reverts back to $1 million, and the maximum rate climbs back to 55%.

I agree this is crazy. Especially because what the Republicans wanted to do back then was to kill the estate tax.

But they couldn’t eliminate the tax because that would have required disclosing that the law would have cut government revenue by far more than the $1.4 trillion the law’s supporters claimed.

To get around that inconvenient problem and not have to win a larger majority to comply with the provisions of the Congressional Budget Act of 1974, the tax writers had to say that all provisions of the tax law would expire and revert to old tax law — assuming they’d be extended somehow. (And it was stated that way at the time.)

But lawmakers haven’t extended the 2001 law yet, and the Republicans no longer control Congress.
Good tax planning
No wonder my kids want me to exit in 2010. It’s a tax freedom year for them.

So, crank up the heart and lung machines. Keeping those with huge taxable estates alive until Jan. 1, 2010, could be worth big bucks to their beneficiaries. A zero tax on a $10 million estate would save those heirs about $5 million.

But if you’re still hanging on after Christmas 2010, watch out. You’re probably not going to make it into 2011, when we’re scheduled to go back to the rules under the pre-2001 tax law.

The first breath you take on New Year’s Day 2011 could cost your beneficiaries many millions in increased federal estate taxes.

I gave my wife, Barbara, a living will and health care proxy in case I can’t make appropriate care decisions for myself. She now informs me that the 2001 law requires (at least in 2010) the invocation of “do not resuscitate” provisions for anything more than a hangnail. I must have missed that page.

I’m not being at all facetious that these sorts of calculations, as morbid as they may sound, will be made by a great many people.

In fact, in the 2001 paper “Dying to Save Taxes” (.pdf file), economists Joel Slemrod of the University of Michigan and Wojciech Kopczuk of the University of British Columbia studied 13 changes in the U.S. tax code from 1917 forward. They concluded that taxpayers died in greater numbers just before tax increases and just after tax cuts.

A 2006 study in Australia reached the same conclusion. More than half of those who ordinarily died in the week before the abolishment of the Australian inheritance tax survived into the next month and escaped with their estates untaxed.

Where there’s a will, there’s a beneficiary with a lawyer trying to trim the potential hurt.
What Congress will do
Sorry, but much of the above is little more than me having fun.

It may feel good, but none of it is likely to happen.

There’s no way Congress wants an unlimited estate tax exclusion to go into effect. I expect to see changes come out before the end of 2009 that President Barack Obama will sign.

Although Republicans want to kill the estate tax, what they call the “death tax,” their fallback position is to create a $5 million exclusion and a 35% top rate.

That would eliminate the federal estate tax for married couples with estates worth up to $10 million, if their wills were drafted with the appropriate special credit shelter/exclusion trusts.

Democrats are willing to continue the $3.5 million exclusion after this year. They also want an automatic credit for the estate of the surviving spouse for any exclusion not used by the first to die. Under current law, each spouse has a $3.5 million exclusion. But if 100% of the estate is left to a surviving spouse, the decedent’s $3.5 million exclusion is lost. Allowing the surviving spouse to exclude any amount not used by the first to die would end the need for trusts and exclude a minimum of $7 million from the combined marital estate.

In case anybody missed the last election, Democrats have a majority in both chambers of Congress. At a minimum, the unlimited exclusion for 2010 probably will be replaced by an extension of this year’s $3.5 million exclusion, with a 45% maximum rate. Those figures are expected to be extended into 2011 as well — at least until Congress changes the law once again.

So Josh, any chance of my staying around a bit longer? I promise not to spend too much . . . – MSN Money

]]> 4433 2009-10-01 01:38:15 2009-10-01 08:38:15 open open 2010-the-best-year-to-die publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6507#comments wfw:commentRSS http://zikkir.com/business/6507/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6507 syndication_item_hash 22fc90a074c6d72bd3f7c2ef088ab645 Inflation: Who wins, who loses and how to cope http://www.ethiopianreview.com/business/4432 Thu, 01 Oct 2009 08:42:21 +0000 http://zikkir.com/business/?p=6509 Fears of the inflation monster are beginning to creep in even as wages are largely stagnant and some prices are dropping. It’s time for an inflation game plan.

Right now, there are more home sellers than buyers, more jobless than job openings and more factories making goods than buyers for those goods. It’s easy to see why prices, if not falling, have all but stopped rising.

Who doesn’t like lower prices? Economists, for one.

Deflation is what took hold in the Great Depression, leading to lower wages, higher unemployment and more loan defaults. (It gets tougher to pay your loans when you have fewer dollars to do so.) Deflation tends to feed on itself; once it takes hold, it’s hard to stop.

The good news is that many economists think the biggest deflation risk has passed. The government has poured more than $1 trillion into the mix to prop up jobs, home prices and consumer spending. But once the economy starts to pick up, the worry is that there will be lots of dollars chasing after goods and services plus more willingness to spend them, which will bid prices up.

So far, there doesn’t seem to be much cause for concern. The core Consumer Price Index has risen just 1.4% in the past 12 months, and most economists don’t see inflation accelerating anytime soon.
When waiting to buy meant paying more
If the Fed gets it wrong and doesn’t pull back fast enough when the economy takes off, we could see inflation like we haven’t seen in years. Even the Fed’s efforts to ward off inflation might bring the kind of rising interest rates and prices we last experienced in the late 1970s and early 1980s.

Here’s just a sample of what life was like back then:

* Prices increased 40% in just three years, from 1979 through 1981. Every trip to the grocery store, it seemed, resulted in a bigger bill.

* The prime interest rate, now 6.75%, peaked at 21.5% in December 1980. Borrowing became prohibitively expensive as the Fed tried to break inflation’s back by raising rates sky-high to choke off demand.

* Fixed-rate mortgages, currently hovering around 5.5%, averaged 17.5% in 1982. That means the payment on a $200,000 mortgage back then was $2,933, compared with less than $1,133 at today’s rates.

What real inflation looks likeYear Inflation Year Inflation

1973

6.2%

1979

11.2%

1974

11.0%

1980

13.6%

1975

9.2%

1981

10.4%

1976

5.8%

1982

6.2%

1977

6.5%

1983

3.2%

1978

7.6%

1984

4.3%

Source: Bureau of Labor Statistics

Who hurts, who prospers

If you don’t remember those days, you have plenty of company. More than half of the U.S. population is under 40, so many people either weren’t born or were just kids when inflation took big bites out of their parents’ budgets.

Because so many of us have never dealt with serious inflation and the rest of us are out of practice, it’s time to review the basics: who wins, who loses and how best to cope.

When inflation starts eroding the purchasing power of the dollar, the folks most at risk include:

* People on fixed incomes. Social Security and disability checks may have cost-of-living increases built in, but those typically lag the actual inflation rate, which can spell some tight times. People living on income from certificates of deposit and other cash savings may see their yields climb but, again, at less than the inflation rate.

* The poor. The less money you make, the more of your budget is spent on basics such as food, shelter, clothing and transportation, and the less flexibility you have to deal with rising prices.

* Holders of long-term bonds. Rising rates drive down the value of older, lower-paying bonds. The longer the term of the bond, the bigger the hit it can take.

* People with variable-rate debt. Interest rates aren’t fixed on most credit cards and home equity borrowing; many mortgages have adjustable rates as well. That means rising payments.

The winners? Folks with fixed-rate debt, which gets easier to repay with ever-cheaper dollars, and those who have investments that can beat the rate of inflation.
Your inflation game plan
So here are the lessons to be learned when dealing with inflation:

* Don’t rush to pay off your fixed-rate debt. Even at modest inflation rates, the payments on fixed-rate mortgages, auto loans and other debt get cheaper every year. If prices continue to accelerate, the mortgage payment that seems so monumental today will quickly start to feel like a bargain.

* Beware of locking in low rates on savings. If inflation does return, you’ll be sorry you bought long-term bonds or certificates of deposit at lower rates. Consider laddering your fixed-income investments, which means buying bonds or CDs with staggered maturities. If you have CDs maturing every few months, you’ll be able to take advantage of higher rates should they come.

* Get ready to substitute. Prices for different goods and services rise at different rates, which means savvy shoppers have opportunities to substitute relatively cheaper items for more-expensive ones. Eggs, for example, rose nearly 50% after Hurricane Katrina devastated many of the nation’s poultry producers; price-conscious consumers ate more oatmeal for breakfast. All the ways frugal folks have traditionally found to save money become even more helpful as prices soar.

* Weigh the cost of procrastination. Today’s consumers are used to being rewarded for waiting. Delay buying that computer, for example, and you’ll get a better, more powerful one for less next year.

In an inflationary environment, though, rising prices reward those who don’t procrastinate.

Obviously, you’ll want to keep living within your means, and you don’t want to finance these purchases with variable-rate debt, like credit cards. But should inflation reignite, the scales will start to tip in favor of buying sooner rather than later.

* Get real. Investments in so-called “real assets” — real estate, natural resources and commodities — can help you hedge against inflation. Just don’t go overboard, because these assets are notoriously volatile. For all the hubbub about gold, for example, prices for that precious metal still haven’t come anywhere close to regaining the peak hit in January 1980, when the per-ounce price was $850 — or about $2,225 in today’s dollars. (Check today’s gold prices here; they’ve soared about 40% since the meltdown began last year.)

* Stay invested in stocks. The slightest hint of accelerating inflation often sends the stock market into a tizzy, which has given some investors the mistaken notion that equities are a bad place to be in an inflationary environment.

In reality, stocks did pretty well during the country’s last bout with significant inflation, posting double-digit returns in six out of the 10 years during the inflationary decade starting in 1974. Over the long haul, most investors need the inflation-beating returns stocks provide if they want to reach their retirement and other goals.

Stocks versus bonds during the inflation yearsYear S&P 500 Long-term bonds Year S&P 500 Long-term bonds
1974 -26.47% 4.35% 1979 18.44% -1.23%
1975 37.20% 9.20% 1980 32.42% -3.95%
1976 23.84% 16.75% 1981 -4.91% 1.86%
1977 -7.18% -0.69% 1982 21.41% 40.36%
1978 6.56% -1.18% 1983 22.51% 0.65%

Source: Ibbotson Associates

Don’t eschew bonds. Even though bonds tend to suffer when rates rise, they’re important to most people’s portfolios. They can provide a cushion against stock market volatility. And when they fall in value, they tend to fall far less than stocks.

Finally, remember that nothing is certain. The Fed may get it right and siphon money out of the system without creating havoc. If not, though, at least you’ll know what to do. – MSN Money

]]> 4432 2009-10-01 01:42:21 2009-10-01 08:42:21 open open inflation-who-wins-who-loses-and-how-to-cope publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6509#comments wfw:commentRSS http://zikkir.com/business/6509/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6509 syndication_item_hash f47472c95802d1d2429f328e8ca0d651 2363 m_daniel_588@hotmail.com http://www.adsenseboy.com/ 74.86.148.194 2009-10-29 21:04:28 2009-10-30 04:04:28 spam 0 0 Up next: The illusion of prosperity http://www.ethiopianreview.com/business/4431 Thu, 01 Oct 2009 08:44:39 +0000 http://zikkir.com/business/?p=6511 Comparing corporate income and consumer sales to last year’s data is like looking in a fun-house mirror. All the data will really reflect is how bad things were last year.

Economic commentators get excited these days if the typical indicator rises by 1% or 2%. What about 132%?

That’s one credible projection for the increase in total net income for the S&P 500 Index ($INX) in the fourth quarter of 2009.

In any normal year, income growth of 5% or 6% would get analysts excited. But 2009 is not a normal year; it’s the year after the Year Wall Street Wrecked the Economy. So compared with the fourth quarter of 2008 — when the stock market crashed and the economy flirted with a full-blown depression — results in 2009 are going to look remarkable.

“We’re going to see some mind-boggling growth rates,” says Dirk van Dijk, the chief equity strategist for Zacks Investment Research, which is forecasting the 132% blastoff.

For the next several months, in fact, there will be a deluge of economic and financial indicators that are so inflated as to be meaningless.
Better by comparison
To measure changes in the economy, we often compare the situation today to the way it was a year ago, to filter out seasonal factors like weather and holidays that can lead to big month-to-month fluctuations. Growth in corporate earnings, department store sales and some measures of home sales are typically calculated based on year-to-year, apple-to-apple comparisons, for example. (Other indicators, such as gross domestic product, unemployment and inflation, are less seasonal and easier to measure on a month-by-month or quarterly basis.)

The recession developed gradually through most of 2008 until the cataclysms of September, when Lehman Brothers (LEHMQ, news, msgs) declared bankruptcy, AIG (AIG, news, msgs) collapsed, Wall Street quaked and lending virtually stopped. The stock market plunged, housing froze up, and shocked consumers, wondering what kind of catastrophe was happening, basically stopped shopping.

For the next six months the economy got dramatically worse, with GDP suffering its biggest contraction since 1958.

Compared with that wipeout, sales of cars, homes and retail products for the next six months will make it look like America won the lottery.
Financials win big, sort of
In terms of earnings, the most startling gains will probably come in the financial sector, which lost an astounding $63 billion in the last three months of 2008. Van Dijk estimates that the profit swing in financials from 2008 to 2009 will account for most of the huge gain in S&P 500 earnings, with the consumer goods sector also showing a big increase. “It’s more a statement about how depressed earnings were in the fourth quarter of 2008 than a statement about robust profits in 2009,” he says.

Overall fourth-quarter earnings will still probably be below the levels of 2007, which included the last couple of months before the recession began.

Overall growth in the economy is likely to be a bit inflated, too, when those numbers are released at the end of October (third-quarter GDP) and next January (fourth quarter of 2009). “Remember, it is the rate of change that is the driving force behind GDP, and the rate of change in a number of GDP components will improve simply because things fell so far,” writes analyst Patrick O’Hare of Briefing.com. “In effect, the U.S. economy is destined to improve in the near term on technical factors alone.”

The real economy remains in rough shape, with unemployment likely to stay close to 10% for months. Like other economists, Federal Reserve Chairman Ben Bernanke said recently that, in technical terms, the recession is probably over. But he cautioned that “it is still going to feel like a very weak economy for some time.”

So enjoy those blowout numbers. The occasional mirage of prosperity might be a welcome escape from reality. – MSN Money and U.S. News & World Report

]]> 4431 2009-10-01 01:44:39 2009-10-01 08:44:39 open open up-next-the-illusion-of-prosperity publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6511#comments wfw:commentRSS http://zikkir.com/business/6511/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6511 syndication_item_hash 718e0d7c280b07fd3afc67f73c1cd585 EU court says exclamation point is not a trademark! http://www.ethiopianreview.com/business/4430 Thu, 01 Oct 2009 08:46:12 +0000 http://zikkir.com/business/?p=6513 q
The brand may be familiar, but an exclamation point is too common

The German fashion design company Joop! has lost an appeal to an EU court to register the exclamation point in its logo as a trademark.

The European Union Court of First Instance said on Wednesday the exclamation point lacks “distinctive character” that would warrant granting a trademark.

In 2006, Joop! filed two applications for trademarks at the EU’s trademark office, OHIM. The first was for a simple exclamation point, the second was an exclamation point inside a rectangle. OHIM rejected the applications, which led Joop! to take the case to court.

While Joop! maintains that the exclamation point with or without the rectangular box is distinct enough for consumers to know it referred to products from the company, the European court disagreed.

“The consumer, including a consumer having a high degree of attention, will not be in a position to infer the origin of the goods designated by relying on a mere exclamation mark,” said the court.

The rectangular frame around the exclamation point was not sufficient either, as “placing the mark inside a label-like rectangle is a very common practice in the relevant commercial sector,” the court added.

Joop! has the right to appeal the court’s decision, but it appears that it may have run out of arguments for the exclamation point – period. – DW-WORLD.DE

]]> 4430 2009-10-01 01:46:12 2009-10-01 08:46:12 open open eu-court-says-exclamation-point-is-not-a-trademark publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6513#comments wfw:commentRSS http://zikkir.com/business/6513/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6513 syndication_item_hash 5a66a9458ebaa12de8168adcd0bab6c2 German retail figures slip in August http://www.ethiopianreview.com/business/4440 Thu, 01 Oct 2009 11:54:34 +0000 http://zikkir.com/business/?p=6515 1
The drop in sales came as a surprise

German retail sales figures dipped an unexpected 1.5 percent for the month of August, surprising analysts who had forecast a slight increase, following a rise of 0.7 percent in July.

Preliminary data released by the Federal Statistics Office in Wiesbaden on Thursday showed that August 2009 retail sales were down 2.6 percent over the same period a year ago.

The figures are based on data collated from seven German states, representing roughly 76 percent of all German retail sales for that period.

Separated by sector, the retail food industry was down 1.0 percent over August of last year, while non-foods overall slipped 3.5 percent. However, here, cosmetics, pharmaceuticals and medical supplies actually expanded 2.5 percent.

The steepest declines hit the Internet and mail-order sectors with a precipitous drop in sales of 8.3 percent. Jewelry and books slipped 4.8 percent, while department store sales were down 4.0 percent, the same as textiles, clothing and shoes.

For the period January through August 2009, German retail sales were down 2.0 percent on the year. – DW-WORLD.DE

]]> 4440 2009-10-01 04:54:34 2009-10-01 11:54:34 open open german-retail-figures-slip-in-august publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6515#comments wfw:commentRSS http://zikkir.com/business/6515/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6515 syndication_item_hash af57fa10e66613561239867d41cb0046 China cuts gasoline, diesel prices http://www.ethiopianreview.com/business/4439 Thu, 01 Oct 2009 11:56:24 +0000 http://zikkir.com/business/?p=6518 China will lower gasoline and diesel prices by 190 yuan (27.8 U.S. dollars) per tonne from Wednesday, the National Development and Reform Commission (NDRC) announced Tuesday.

The benchmark price of gasoline will be 6,620 yuan a tonne, and for diesel 5,880 yuan a tonne, according to the NDRC.

The retail price of gasoline will drop by 0.14 yuan per liter and that of diesel will decrease by 0.16 yuan per liter.

It is the eighth fuel price adjustment since the country adopted a new fuel pricing mechanism, which took effect on Jan. 1 and the first reduction of fuel prices in two months.

Under the pricing mechanism, the NDRC will consider changing the benchmark retail prices of oil products when the international crude price changes more than 4 percent over 22 straight working days.

The price cut was in accordance with the international price changes, the NDRC said.

The average crude price of Brent, Dubai and Cinta has declined to 71.52 U.S. dollars a barrel, down 5.02 percent since the previous fuel price adjustment, according to the Shanghai-based CBI (China) Co., Ltd., a leading service provider in Chinese commodity markets. – China.org.cn

]]> 4439 2009-10-01 04:56:24 2009-10-01 11:56:24 open open china-cuts-gasoline-diesel-prices publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6518#comments wfw:commentRSS http://zikkir.com/business/6518/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6518 syndication_item_hash 8c92deb1f4750af4aac6865a74c4d98b China market believed to have huge potential for foreign insurers http://www.ethiopianreview.com/business/4512 Fri, 02 Oct 2009 02:10:20 +0000 http://zikkir.com/business/?p=6520 With rapid development, China’s insurance market has huge potential for foreign insurers, says Gerry Grimstone, chairman of Standard Life, the largest savings and pensions company in Britain.

“China is a very exciting market. I am a great enthusiast for China and a great supporter of China. I love the fact that we are part of the growth in China and try and sell products which are good for Chinese families,” he said in a recent interview with Xinhua.

Standard Life currently runs businesses in nearly 50 cities in China and is one of the top five international companies in the market. The joint venture between Standard Life and Tianjin Taida is the largest of such kind in China.

“China will become an important part of our business, so I encourage my people to take an interest in China. I would like to have more of our people working in China,” he said.

Speaking of China’s efforts to boost its economy under the challenging economic conditions, he complimented the Chinese government’s quick and sensible reaction to the global financial crisis, saying it has benefited the rest of the world.

“They will be grateful to the Chinese government for what it has done to stimulate the Chinese economy,” he added.

While praising China as a very self-confident country at present, Grimstone also said China should welcome equal competition from international companies since it has strong and effective regulations.

At present, the total market share for the international insurance companies in China is about 5 percent, which is “very low” according to Grimstone. He suggested a more open market would help Chinese customers eventually.

But he also expressed his understanding of China’s moderate pace of opening up the capital market as all governments and financial services are cautious about the speed at which foreign companies enter the market.

“The good thing about China is that the Chinese domestic insurance companies are also very strong,” he said, “so we have good competition with them and we enjoy competing with them. It gives the customer good choice.”

Asked about his development strategy in China, Grimstone said that he would open more offices in China and recruit more staff.

“We have an ambition to have offices in about 100 cities eventually in the next three or four years,” he added.

He also said that more work has to be done in China in deciding what is best for the customer to sustain a long-term future for the business.

“The insurance industry relies upon long-term savings. The essence of insurance is trying to produce long-term value for your shareholders and your customers,” he said.

According to his knowledge, China now has a very low percentage of people who have insurance.

“I am sure that the percentage will grow in the future,” he said. The way to improve insurance in China is through better education of the customer and better training of the staff, he added.

When asked about the overseas expansion of Chinese companies, he said he hoped to see Chinese insurance companies, and eventually Chinese lawyers, Chinese accountants, in Britain.

“That’s what world trade is all about,” he said.

Grimstone told Xinhua he had traveled to China many times and had spent time traveling in the western part of China. He believes it is possible for his company to explore the market there. – China.org.cn

]]> 4512 2009-10-01 19:10:20 2009-10-02 02:10:20 open open china-market-believed-to-have-huge-potential-for-foreign-insurers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6520#comments wfw:commentRSS http://zikkir.com/business/6520/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6520 syndication_item_hash 12e931a87ac612ef86515391f2cd1d61 IMF upgrades world’s economy growth http://www.ethiopianreview.com/business/4511 Fri, 02 Oct 2009 02:11:07 +0000 http://zikkir.com/business/?p=6522 The International Monetary Fund ( IMF) upgraded the economic growth estimation in 2009 and 2010 in several countries with the highest growth estimation set for China and five ASEAN countries, the Detik.com news portal reported here on Thursday.

China’s economic growth this year was upgraded to 8.5 percent, or 1 percent higher from the initial estimation.

Meanwhile the economic growth estimation in five ASEAN countries that consisted of Indonesia, Malaysia, the Philippines, Thailand and Vietnam is upgraded by 1 percent from minus 0.3 to 0. 7 percent this year.

The IMF predicted that the global economic growth in 2009 would reach minus 1.1 percent, or higher than its initial estimation of 1.4 percent.

In 2010, the IMF predicted that global economic growth may reach 3.1 percent, or 0.6 percent high from its initial estimation.

The growth revision was referred to the economic recovery that seemed to be faster than its initial prediction. The IMF, however, said that the revision does not imply that the crisis has already ended.

“The economic recovery is underway in many countries at the moment. The economic growth would be positive this year until 2010. But it should not make governments think that the crisis already ended,” IMG economist Olivier Blanchard said in a statement distributed to the media.

IMF said countries that would enjoy positive economic growth this year are African countries (1.7 percent), China (8.5 percent), India (5.4 percent), five ASEAN countries (0.7 percent), Middle East countries (2 percent).

The IMF estimated that countries like the United States, France, Italy, Russia, the United Kingdom, Canada, Brazil and Mexico would still be in negative growth territory this year.

But the IMF’s revised estimation on those countries showed positive trends compared to its previous estimation.

China and India are still regarded to be the countries that spurred the world’s economy.

In 2010, China’s economic growth is predicted to reach 9 percent, while India at 6.4 percent. Meanwhile the economic growth in the ASEAN five is predicted to reach 4 percent in 2010. – China.org.cn

]]> 4511 2009-10-01 19:11:07 2009-10-02 02:11:07 open open imf-upgrades-world%e2%80%99s-economy-growth publish 0 0 post syndication_item_hash e6f5fcaa6a9b2c57f6d727e878f54c02 syndication_permalink http://zikkir.com/business/6522 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6522/feed rss:comments http://zikkir.com/business/6522#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir Saturn’s Orbit Comes to a Stop http://www.ethiopianreview.com/business/4574 Fri, 02 Oct 2009 02:33:17 +0000 http://zikkir.com/business/?p=6545 Penske Automotive’s plans to buy Saturn have fallen through, and GM will close the company it once called “a different kind of car company.”

1
GM created Saturn Corp. in 1985. Twenty-four years later, the company decided to shut it down.

It was 1985 and Detroit was full of optimism, breathless with anticipation.

General Motors, at the time the world’s biggest carmaker, was going to create a whole new kind of car company, one that stressed customer service, one that focused on building the kind of cars that the Japanese were beginning to sell with such success. “A different kind of car company,” GM marketers called it. There was optimism, there were leaks to the newspapers about just where this new company, Saturn, would make its home.

There was hope that home would be Detroit, and there was disappointment when the headline appeared on the front page of the Detroit Free Press, above the smiling face of a Tennessean. GM was building its new company in Spring Hill, Tennessee. Detroit had lost again.

And today, Detroit loses one more time. The deal for Bloomfield Hills, Michigan-based Penske Automotive to buy Saturn from the new GM—the chastened, smaller, just-out-of-bankruptcy GM—has fallen through. And Saturn, that brand that started with all those hopes in 1985, will close, GM announced today.

Penske couldn’t come up with a manufacturer to continue building the Saturn-branded vehicles after GM stopped building the cars. GM had agreed to keep the cars coming until 2011, after which Penske had hoped to attract another manufacturer.

If anybody could pull off such a plan, it was thought, Roger Penske, the former racecar driver at the helm of Penske Automotive could do it. As the New York Times reported September 19, he was the guy who turned around truck leasing for Hertz, revived General Motors’ diesel operations, gave life to Daimler’s micro-car franchise, and built one of the nation’s leading networks of auto dealerships.

Surely he could end the cloud of uncertainty that had hung over Saturn dealerships and loyal Saturn customers as GM announced it would be one of the brands on the chopping block as America’s largest carmaker retrenched. That, at least, was the hope in June. GM then said the deal would preserve 13,000 Saturn jobs and the company’s dealerships, nearly all of which had been built to sell only Saturn vehicles.

Penske had hoped to close the deal on Saturn as early as this week.

But, this time, Penske couldn’t work the magic.

“Penske Automotive Group negotiated the terms and conditions of an agreement with another manufacturer, however, that agreement was rejected by that manufacturer’s board of directors,” Penske stated in a release Wednesday. “Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction.”

GM CEO Fritz Henderson announced that meant the end of the road for Saturn.

“Today’s disappointing news comes at a time when we’d hoped for a successful launch of the Saturn brand into a new chapter,” Henderson said in a statement. “We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other GM dealers in the months ahead. I’d also like to thank every GM employee and Saturn retailer who worked so hard to try to make this new beginning happen for Saturn.”

Saturn is one of four brands the new GM is shedding or has shed as it went through bankruptcy and emerged a shadow of that company that launched Saturn back in 1985.

The company is shutting down Pontiac, with its tradition of muscle cars, by the end of the year. It recently sold Saab to Swedish sports-car manufacturer Koenigsegg Group AB. Hummer, the builder of road behemoths that symbolized American excess in the 1990s, is being sold to obscure Chinese construction-equipment manufacturer Sichuan Tengzhong Industrial Machinery for $100 million, assuming the Chinese government approves the deal. And GM is on track to sell its German Opel division to a coalition led by Canadian parts manufacturer Magna, with reports that the papers on that deal could be signed next week.

That leaves the once-proud automaker with four brands, Chevrolet, Cadillac, Buick, and GMC. And no grand plans to launch any new car companies like it did in 1985 anytime soon. – Portfolio.com

]]> 4574 2009-10-01 19:33:17 2009-10-02 02:33:17 open open saturn%e2%80%99s-orbit-comes-to-a-stop publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6545#comments wfw:commentRSS http://zikkir.com/business/6545/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6545 syndication_item_hash 00f3f3d1696d690e60a79f0592224759 Business for Sale http://www.ethiopianreview.com/business/4573 Fri, 02 Oct 2009 02:35:14 +0000 http://zikkir.com/business/?p=6547 Craigslist has become the site for those interested in selling everything from spare furniture to their entire business.

1

Craigslist has seen a dramatic upswing in traffic, thanks to cash-strapped bargain hunters looking to save some dough in the down economy.

Tony La Bella has a proposition for Craigslist users.

La Bella has owned La Bella’s Fine Foods, a catering and café business in Medford, Massachusetts, that the owner says needs a capital investment to get profitable again. So he’s put the whole business up for sale on Craigslist.

“Things are really slow. From where I am, it’s probably best to let somebody take it and see what they can do with it.”

He’s posted his business for sale at $30,000, a price that has garnered plenty of interest, but no real offers.

“I’ve already sold it 18 times,” he quipped, “but nobody has any money.”

La Bella’s is an extreme case of a trend across the country. Listings on the business category of Craigslist—which include everything from office supplies to entire businesses—have quadrupled nationwide in the last two years.

In the Boston area, where La Bella is located, such listings have doubled.

Craigslist’s overall traffic has grown steadily through the recession. In August 2009, the San Francisco-based online-classified marketplace saw 11.6 million more visitors than it saw in August 2008. The site’s 25.6 percent growth, compared with its traffic a year ago, vastly outstripped the Internet at large, where the number of monthly users grew by 4 percent in the same time frame.

For those without an insight into folkloric economic indicators such as men’s underwear sales or construction cranes on the Manhattan skyline, continued upswings in activity on Craigslist, where items go for fire-sale prices, may be a window into property owners’ distress—and buyers’ continued reluctance to pay full price.

On the other side of the Craigslist equation from La Bella, graphic designer Jessica Sutton has furnished most of her Fort Point studio with midcentury modern furniture bought on Craigslist. It’s a habit she picked up last year, when she was starting out in a smaller office in the Back Bay.

“I was just starting out, and I didn’t want to spend a lot of money,” she said. Now, bargain hunting has become her MO.

Craigslist doesn’t reveal the number of posts it sees daily, but the flood of offers could easily overwhelm any shopper. Sutton said she doesn’t have time to dig through the site itself—and she doesn’t have to. Boston blogger Keyse Angelo puts up her favorite picks on a Google-hosted blog she calls Crocodile Tears, at crocodiletears-keyse.blogspot.com.

Angelo, who on a typical day posts between 10 and 20 new furniture items, links to “sponsors” on her blog—but hasn’t gained any revenue. Most of the sponsors are friends who run their own businesses, she said.

Angelo, 29, said she and many people she knows won’t pay full price for nice things, with Boston’s second-hand market burgeoning and accessible through the Web.

“There’s so much stuff in the city, and there’s so much transition,” she said. “Students are coming and going; professionals are coming and going. There’s an abundance of furniture and clothes. There’s no need to go and buy new things.” – Portfolio.com

]]> 4573 2009-10-01 19:35:14 2009-10-02 02:35:14 open open business-for-sale publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6547#comments wfw:commentRSS http://zikkir.com/business/6547/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6547 syndication_item_hash a4e5d37bd9e1aea76e1cb9840ce1555c Realtors see sharp rise in loans to subsidiaries http://www.ethiopianreview.com/business/4572 Fri, 02 Oct 2009 02:37:27 +0000 http://zikkir.com/business/?p=6549 Loans by real estate companies to their subsidiaries have gone up sharply — a fact that prompted the Reserve Bank of India to sound a note of caution on bank exposure to the sector.

Last week, banks were asked to factor in the loans extended to a group — comprising subsidiaries, special purpose vehicles and related parties of a real estate company — “as a matter of prudence”.

The RBI’s warning is timely because the exposure of these companies to their subsidiaries had gone up 13 to 54 per cent between 2008 and 2009. In the case of Mumbai-based Orbit, the exposure went up by as much as 257 per cent and Kolte Patil Developers saw its exposure to its subsidiaries go up by 1,400 per cent.

In the case of DLF, the country’s largest developer that has 308 subsidiaries and 41 companies, including partnership firms, joint ventures and associates, loans to subsidiaries moved up by 14 per cent between FY 2008 and 09.

Analysts attribute the increase in lending to subsidiaries to tightening bank credit towards the end of 2008.

“Buying and selling land requires a lot of transaction costs, so developers buy land through various special purpose vehicles (SPVs). There was an issue of bank debt with developers at the end of 2008 and the increase in loans to subsidiaries could be a result of that,’’ said Ambar Maheshwari, director of investments at DTZ, an international property consultant.

A Mumbai-based analyst who did not want to be identified added: “Developers cannot get loans from banks for buying land. So, some take loans for general corporate purposes and later transfer them to subsidiaries to acquire land. Though they are required to buy land through equity, not many could have done so, given the poor market conditions,’’ he said.

After the sharp rise in property prices between 2004 and 2006, the central bank has taken a slew of measures such as increasing the risk weights and standard provisioning for the real estate sector to prevent an asset bubble. Banks also went slow on lending to the sector and stopped lending for land buying.

INBUILT LIABILITIES
Loans to subsidiaries Investment in subsidiaries
2007-08 2008-09 % Chg 2007-08 2008-09 % Chg
Kolte Patil Dev 3.36 52.55 1463.99 187.21 163.97 -12.41
Orbit Corpn 35.61 127.58 258.27 1.01 1.02 0.99
Peninsula Land 271.08 417.96 54.18 86.28 86.3 0.02
Ackruti City 89.36 133.94 49.89 63.36 16.51 -73.94
H D I L 421.66 559.16 32.61 21.34 54.06 153.33
Ansal Properties 5.24 6.94 32.44 58.17 157.66 171.03
Parsvnath Devl 107.46 140.03 30.31 37.37 38.44 2.86
Anant Raj Inds 372.37 484.32 30.06 147.74 157.34 6.5
Omaxe 481.99 585.2 21.41 255.96 259 1.19
DLF 6992.84 7945.85 13.63 1617.06 2210.02 36.67
Unitech 5222.46 3956.69 -24.24 180.5 862.64 377.92
Phoenix Mills 348.26 209.03 -39.98 90.79 212.56 134.12
Figures in Rs crore

Developers, however, say the increase in loans to subsidiaries is part of their routine business and not a matter of concern. Ramashraya Yadav, head of finance at Orbit Corporation, said, “We float subsidiaries to acquire different projects and ensure that we can get strategic investors. We have not taken any loan in the name of subsidiaries.’’

Hari Pande, deputy general manager with Mumbai-based realty firm HDIL, added, “It is an internal transfer from the company to subsidiaries. All the land in our projects is held by the parent and not by the subsidiaries.’ – Business Standard

]]> 4572 2009-10-01 19:37:27 2009-10-02 02:37:27 open open realtors-see-sharp-rise-in-loans-to-subsidiaries publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6549#comments wfw:commentRSS http://zikkir.com/business/6549/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6549 syndication_item_hash 27b952dc9a0f3b06140bed5f7352f674 Premium hotels check out 10-20% tariff rise in October http://www.ethiopianreview.com/business/4571 Fri, 02 Oct 2009 02:40:51 +0000 http://zikkir.com/business/?p=6551 Two- and three-star properties won’t be so lucky.

Several premium segment hotels will keep their date with the annual practice of revising rates in October, though the industry is still facing weak demand.

Most of these hotels are talking about a 10 to 20 per cent tariff revision. At the upper end if the Trident hotel in Gurgaon, whichis considering a nearly 25 per cent increase because occupancy is running to 85 per cent against the 50 to 60 per cent industry average.

Increases will, however, be city-specific. A two-night stay at the Trident in Mumbai could cost you around Rs 21,600 against the present Rs 18,000. A stay of the same duration in Trident Gurgaon will set you back around Rs 30,000 against the present Rs 24,000.

“The global economy is showing signs of recovery. Recession has bottomed out and things are looking up. We see good times for the industry in the next few months and a revision of rates is only obvious,” said a senior Trident executive.

Carlson Hotels will revise rates across its mid-scale Country Inns and Suites in the metros. The company says it would also consider revising rates for its other properties in November. “We are in the wait-and-watch mode for our leisure destinations, where room rates could go up from the present Rs 12,000 to Rs 16,000 for a two-night stay,” Sanjeev Pahwa, Vice President, Carlson Group, said.

Hotel Leelaventure has similar plans, though on a more conservative scale — just 5 to 7 per cent.

“Our rate revision would be market-dependent. The Delhi market could see a higher revision,” a Hotel Leela executive said.

The mood is clearly upbeat in the premium segment. Nearly 75 per cent of the respondents to a Ficci survey last week said the hotel industry’s performance would improve substantially in the next six months and nearly 40 per cent said the current performance was moderately to substantially better than the last six months.

The optimism among five-star hotels stems from the improvement in corporate travel, which suffered badly last year, and the improvement in foreign tourist arrivals for business and leisure.

The degree of optimism, however, evaporates in the two-star and three-star category of hotels. Manav Thadani, managing director of HVS International, a hospitality consulting firm that tracks the 300-odd branded hotels in the country, said room rates would not see a revision across the board.

“This fiscal, the room rates across segments will see a decrease of 15-35 per cent against 1.9 per cent last fiscal,” HVS International said in its 2009 report.

Analysts also said there could be a few exceptions that can afford to revise rates, owing to their premium locations. But the party wouldn’t last long even in the upscale markets, as new capacity would come in, along with new domestic and international brands.

According to data from Crisil Research, Bangalore could see the number of premium rooms go up to 3,150 in this fiscal from 2,558 rooms in 2008-09. North and south Mumbai together could see the number of rooms going up from 6,829 to 7,529 in the same period. – Business Standard

]]> 4571 2009-10-01 19:40:51 2009-10-02 02:40:51 open open premium-hotels-check-out-10-20-tariff-rise-in-october publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6551#comments wfw:commentRSS http://zikkir.com/business/6551/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6551 syndication_item_hash ac4251e2d86fb684a28bc888d8df95ac ICAI to limit multiple entities by audit firms http://www.ethiopianreview.com/business/4570 Fri, 02 Oct 2009 02:42:07 +0000 http://zikkir.com/business/?p=6553 Proposal awaits approval, to apply prospectively.

The Institute of Chartered Accountants of India (ICAI) is likely to restrict to two the number of entities an audit firm can register. The move follows denials by PricewaterHouse of any connection with the tainted entity that conducted the audit on Satyam Computers, whose promoter confessed to fraud in January this year.

The proposal to restrict multiple registrations by audit firms, made by ICAI’s committee that looked into the Satyam fiasco, is expected to be approved by ICAI’s apex governing council soon.

“Sometimes you find four or five firms registered in identical or almost similar names – Pricewater House and Pricewater House & Co for instance – in various parts of the country. We have taken a decision in the committee not to permit the registration of more than two such firms that are promoted by the same entity,” ICAI President Uttam Prakash Agarwal told Business Standard.

There are three Price Waterhouse firms and four Price Waterhouse & Co firms in PriceWaterhousCoopers’ network of firms in India. Each firm is a separate partnership firm, with a maximum of 20 partners each, with head offices in the cities in which they are registered. Each of these is registered with ICAI. The Pricewater House registered in Bangalore had audited Satyam.

The institute’s decision, however, will not have any impact on existing arrangements since the decision will be effective prospectively. “We cannot undo the past. But for the future, we are not going to allow such registrations,” Agarwal said.

PricewaterHouse said that its Kolkata and Delhi firms had nothing to do with the Satyam audit. “Nor have they received till date any notice from ICAI alleging misconduct,” the auditing firm said in a e-mail response to a query.

ICAI has also decided to prevent all audit firms, whose partners are under scrutiny for unethical practices, from taking up government audits. The move has come at a time the government is planning to make such a ban legal by introducing an enabling clause in the new Companies Bill.

Although the enactment of the law will take time, ICAI’s decision can have an immediate effect through an existing referral mechanism under which the Controller and Audit General (CAG) and Reserve Bank of India (RBI) check with ICAI before awarding auditing assignments.

“All audit work is given by CAG or RBI and they generally ask ICAI if any disciplinary cases are going against them or not. Since the letter comes to us, we have taken a decision to write to them, saying these firms should not be given the opportunity,” Agarwal explained. – Business Standard

]]> 4570 2009-10-01 19:42:07 2009-10-02 02:42:07 open open icai-to-limit-multiple-entities-by-audit-firms publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6553#comments wfw:commentRSS http://zikkir.com/business/6553/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6553 syndication_item_hash 3cc96f97425955a12cf8ef7defdad4a2 Govt backtracks, to make CAS voluntary http://www.ethiopianreview.com/business/4569 Fri, 02 Oct 2009 02:43:16 +0000 http://zikkir.com/business/?p=6555 After being operational for nearly three years in select parts of Delhi, Mumbai and Kolkata and over six years in Chennai, the Conditional Access System (CAS) for television is being given a quiet burial, at least for the rest of the country.

After deliberations with various stakeholders, including broadcasters and cable operators, the information and broadcasting (I&B) ministry has decided to make the roll-out of CAS voluntary across the country, instead of being mandatory as originally planned.

“CAS is not an essential commodity that it has to be made mandatory just because a section of the industry wants it,” a senior I&B official said on condition of anonymity.

“It is also a political decision,” the source added. “The government can’t be seen to be forcing people towards a particular system of consuming television when there are viable choices available in the market like DTH, cable via HITS or digital cable. So, we are planning to make it voluntary and will be looking at legal requirements to do so,” he said.

CAS is a digital cable delivery system for broadcasting services via set top boxes (STBs). It was enforced in parts of the three major cities on January 1, 2007. In 2003, it was implemented in Chennai selectively, after which it covered the entire city.

CAS was implemented through a notification in 2007 after a Delhi High Court order — in response to a petition from multi-system operators (MSOs) — directed them to implement the service in parts of Delhi, Mumbai and Kolkata.

The government, however, did not extend CAS to other cities, even though the Telecom Regulatory Authority of India (TRAI) had recommended that it should be rolled out country-wide. The government contended that it had not taken a final view and was consulting various stakeholders.

The government’s move may impact the business plans of several large cable companies, especially MSOs like InCable, Hathway and WWIL that have invested over Rs 2,000 crore in servicing existing CAS areas.

“We do not understand voluntary CAS. Unless consumers or the cable operators are asked to move to a digital cable provided under mandatory CAS, no one will switch off their poor-quality analogue cable service,” said A Mohan, executive vice president and head of regulatory affairs, Essel Group, which operates cable firms (WWIL), a DTH venture (Dish TV) and the Zee bouquet of channels.

“This move will also scuttle the government’s plans to convert analogue cable infrastructure into digital by 2014,” he added.

MSO operators say they may explore legal options if the government opts for a voluntary roll out. “If the government does not give a time-frame for the voluntary roll-out of CAS, legal recourse is still available to us,” said a senior executive of (MSO) Alliance, the industry body on whose petition CAS was enforced in 2007.

Broadcasters like STAR, Zee, ESPN and so on will, however, be happy, since they consistently supported a voluntary system.

“We have supported a voluntary roll out of CAS all through because the pricing of channels is determined by market forces. In CAS, prices were fixed at ridiculously low rates. The fact is investments in different channels like sports is much higher, so they command a higher price, which we are not getting in CAS,” said a senior executive of a well-known sports channel.

Experts, however, say apart from bringing in other benefits like curbing piracy and stopping under-reporting of cable homes by the cable operators, a move that impacts subscription revenues, CAS was enforced to provide consumers access to cable services at an extremely affordable monthly outgo as opposed to the highly fluctuating cable charges (ranging from Rs 50 to Rs 450 in the cities).

Trai had set the price of all genres of cable channels at Rs 5 in the CAS areas. Consumers could watch cable service for less than Rs 80 per month, as opposed to Rs 300 to Rs 350 before CAS was enforced. Despite this, CAS notched up sales of only about 600,000 STBs, whereas the three cities have around 8 million cable homes between them. Overall, there are 80-85 million cable homes in the country, of which nearly 15 million homes are now connected by the DTH.

“The ‘stickiness’ of a mandatory CAS customer is obviously much more so than in voluntary CAS. Also the digitisation drive across the country would slow down dramatically, which is not good,” said Timy Kandhari, head of the media and entertainment practice of PricewaterhouseCoopers.
– Business Standard

]]> 4569 2009-10-01 19:43:16 2009-10-02 02:43:16 open open govt-backtracks-to-make-cas-voluntary publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6555#comments wfw:commentRSS http://zikkir.com/business/6555/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6555 syndication_item_hash b0c3fa01026f79cac830099e6cb402a5 Will anyone mourn Saturn? http://www.ethiopianreview.com/business/4568 Fri, 02 Oct 2009 02:49:27 +0000 http://zikkir.com/business/?p=6557 The brand achieved early success in drawing American motorists away from imports. But the smaller vehicles never were a comfortable fit within GM.

The long, sad saga of Saturn is finally over.

The once-hot General Motors division that began with a bang 19 years ago is now headed into oblivion after a deal to sell it to retailer Penske Automotive Group (PAG, news, msgs) fell apart on Wednesday. The chain of auto dealerships released a statement saying it couldn’t find a source to manufacture new car models after 2011, when GM was scheduled to cease production of the existing Saturn models.

“It’s not a big surprise,” says James N. Hall, principal of Detroit-area consulting firm 2953 Analytics. “If you can’t get product, you can’t do the deal.”

Penske had talked to more than one automaker about producing cars to sell in Saturn’s 350 retail stores. The Renault-Nissan alliance was one potential supplier, say sources familiar with Penske’s efforts. The two companies talked about selling some vehicles from Nissan Motor (NSANY, news, msgs), such as the Rogue compact SUV, at Saturn stores. But a deal was never struck.

There were also talks on bringing in cars built by Korean automaker Renault Samsung, which is 80% owned by Nissan partner Renault (RNSDF, news, msgs). But selling Samsung cars in the United States would have created a low-cost competitor for Nissan, so that idea was shot down, say sources close to Penske.

In its news release, Penske said only that the board of directors for a potential auto supplier killed the plan to buy Saturn.

While GM wanted to sell Saturn, the automaker may have dodged a bullet. Saturn’s retail network consists of some of GM’s best dealers. A sale would have created a strong network of dealers run by Penske Automotive, which is run by racing mogul Roger Penske, who is also one of the best auto retailers in the world. The retail powerhouse would have then sold someone else’s cars once GM stopped supplying Saturns in 2011.

“GM is very lucky because Saturn would have become a competitor,” said Maryann N. Keller, an independent auto analyst who is on the board of retail chain Lithia Motors (LAD, news, msgs). “It made no sense to make it available as a brand and a distribution system.”

In an interview in early August, GM CEO Frederick A. “Fritz” Henderson said the decision to sell Saturn was aimed at taking care of longtime dealers. It wasn’t about a business strategy for GM. When asked if he was handing a rival carmaker a strong retail chain that could take market share from GM, Henderson replied, “We’re not going to make it easy for them.”

Now that the deal is dead, Saturn will join Oldsmobile and Pontiac as brands that perished as part of GM’s bankruptcy reorganization. GM says it will give Saturn retailers cash to help wind down their businesses. But dealers say the money doesn’t even offset their costs. Saturn dealer Leo Bunnin says he isn’t sure what to do. Roger Penske and Saturn General Manager Jill Lajdziak were supposed to start a tour of the brand’s retailers in the coming weeks. So they thought a deal was all but done.

“Retailers are shocked,” says Bunnin, who has a Saturn store in Ventura, Calif. “My first thought is to turn it into a used-car store.”

The announcement brings to a close one of the more depressing chapters in GM’s long slide. Saturn customers loved the experience of buying the small cars, and for a while the brand — launched in 1991 as “A Different Kind of Car Company” — succeeded in luring away some import buyers.

Indeed, Saturn started out as a stroke of marketing brilliance. From scratch, GM created a standalone company with its own factory and dealer network, and won buyers by selling the original S-Series compact at one fixed price. That was a revelation for buyers who hated haggling with salespeople. The debut car sold for less than $11,000 and was a bona fide hit.

But through the ’90s, Saturn ran up against jealous siblings inside GM. In 1990, just a year before launching its first car, Saturn lost its patron when then-CEO Roger B. Smith retired. Soon it was battling for money and attention with GM’s other brands, especially Oldsmobile. That partly explains why it took GM eight years to come up with a larger car, the doomed L-Series sedan, and almost a decade to replace the S-Series.

By the time GM started giving Saturn decent cars earlier this decade, the brand had been lurching from one marketing slogan to the next. In 2001 it became a “forward-thinking company.” Before long it was all about the customer again. When that didn’t work, Saturn emphasized its cars — hawking new models with the slogan “Like Always, Like Never Before.” “Rethink American” was another idea that didn’t hit.

Saturn hit a high-water mark with sales of 240,000 cars in 2007. But the brand was historically a big money loser and early this year GM, gushing cash, realized it could no longer support it.

Penske has reached the same conclusion. – MSN and BusinessWeek

]]> 4568 2009-10-01 19:49:27 2009-10-02 02:49:27 open open will-anyone-mourn-saturn publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6557#comments wfw:commentRSS http://zikkir.com/business/6557/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6557 syndication_item_hash 3c1e826710aa131c0eb69df274e261fd The IMF assessed A good war http://www.ethiopianreview.com/business/4567 Fri, 02 Oct 2009 02:50:32 +0000 http://zikkir.com/business/?p=6559 The IMF has done well under Dominique Strauss-Kahn, but its future is unclear

1

DOMINIQUE STRAUSS-KAHN, the ebullient managing director of the International Monetary Fund, likens its role to that of a doctor. As the crisis has spread, the IMF has been called in to cure ailing economies from Ukraine to Pakistan. It is still too early to judge the success of the fund’s prescriptions for troubled countries. But the IMF itself is certainly in far ruder health than it was at the start of the financial crisis.

Just a year ago the fund’s finances were in tatters and its relevance was in doubt. During the early stages of an economic crisis that should have been its natural terrain, Barry Eichengreen, an economic historian at the University of California, Berkeley, wrote: “Global crises used to remind us why we have the IMF. If the fund doesn’t come up with some new ideas for how to handle this one, the crisis may only remind us why we can forget it.”

Part of the IMF’s problem was that its reputation had been severely dented by the experience of rescue operations during the 1997-99 emerging-market crises, when it prescribed notoriously bitter fiscal and monetary pills. As a result its advice lacked legitimacy, particularly in emerging Asia, which saw the fund’s views as geared to its rich-country backers in Europe and America. Many emerging economies subsequently concentrated on building up enormous foreign-exchange reserves to ensure that they would not have to turn to the fund again (these reserves are held by many to have been an underlying cause of today’s crisis). That in turn meant that the fund had so little income from loans that it could not cover its costs.

Mr Strauss-Kahn himself had a difficult start when he took over as managing director in November 2007. His first big task was a contentious cull of around 15% of the staff. And just as the first group of crisis-hit emerging economies was turning to the IMF, an investigation into an affair between him and a member of staff proved an embarrassing (albeit brief) distraction. Few would have predicted at that point just how adroitly Mr Strauss-Kahn would move the fund back to centre stage.

The biggest sign of his success is a trebling of the IMF’s kitty to $750 billion. Some of the new money has come from familiar sources such as America and Europe. But in a boost to the fund’s legitimacy, the BRIC economies—Brazil, Russia, India and China—have all agreed to contribute to its coffers by subscribing to its first-ever bond issue, to the tune of $80 billion.

Equally important, the fund has been on the cutting edge of the global policy response. As Mr Strauss-Kahn puts it, the fund’s experience of 122 earlier banking crises gives it “unparalleled expertise at the intersection of Main Street and Wall Street”. He was an early, vocal and consistent advocate of co-ordinated global fiscal stimulus, advice that in hindsight seems remarkably prescient. And the IMF’s analytical work—whether in identifying the scale of the losses from the financial meltdown or in predicting the effect of the crisis on public finances—has helped reinforce its intellectual credentials.

The extra cash has allowed the IMF to go into crisis-hit countries with packages that can make a difference. It has also allowed the fund to offer “crisis insurance” in the form of a new pre-emptive lending tool, the Flexible Credit Line (FCL). Mexico, Colombia and Poland have so far used this facility. And it still has more money available to lend than it did before the crisis.

The fund’s standard crisis-mitigation loan packages have become more responsive to conditions in client countries. Mr Strauss-Kahn says that its use of conditions attached to loans has become more focused on “fixing the crisis, not fixing the world”. He points to the removal of conditions related to land reform from the IMF package in Ukraine because, though useful, they were not essential for macroeconomic stabilisation. Insiders also credit Mr Strauss-Kahn with emphasising the need to protect spending on the very poor. His background in politics has made him keenly aware of the need to ensure that economic adjustment can work politically.

Despite having had a good run so far, the IMF’s relevance once the crisis is over is far from assured. For his part, Mr Strauss-Kahn is nothing if not ambitious. He argues that the success of the FCL paves the way for the fund to become a true global lender of last resort, much as John Maynard Keynes originally proposed. For this to work, he believes that the IMF needs more money—perhaps as much as $2 trillion in all—and the trust of its poorer members, so that they rely on the fund’s resources, rather than their own reserves, to insure against crises.

Gaining this trust will require reforms to the fund’s “quotas” to give emerging economies more voting power. One round of changes has already been agreed, though not yet implemented. The G20 countries have asked the IMF to complete its next set of quota reviews by January 2011. But to satisfy developing countries, rich ones would have to give up more power than they may be prepared to. The finance ministers of the BRIC countries want a shift in voting power toward emerging countries that is considerably bigger than anything proposed so far.

To be useful, the IMF must also be ready to take unpopular positions. Mr Strauss-Kahn quotes Keynes when he promises that the fund’s “ruthless truth-telling” will convince countries of the soundness of its advice. But more representative governance may make such candour more difficult. Some argue that the IMF has retreated from criticism of China’s exchange-rate regime as China has become a bigger backer.

Keynes also envisaged the existence of sanctions for both surplus and deficit countries. But Mr Strauss-Kahn is wary of seeing the IMF as a sort of “policy police with legal instruments to make countries change their policies”. Yet without some power to enforce its writ, the IMF is likely to be ignored, much as its advice on global imbalances was before the crisis. Like any good medic, the fund must find a way to strike a balance between being firm and being friendly. – The Economist

]]> 4567 2009-10-01 19:50:32 2009-10-02 02:50:32 open open the-imf-assessed-a-good-war publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6559#comments wfw:commentRSS http://zikkir.com/business/6559/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6559 syndication_item_hash 7be9bd767e8325b7bf525673feaed251 Business.view The age of hostility http://www.ethiopianreview.com/business/4566 Fri, 02 Oct 2009 02:52:41 +0000 http://zikkir.com/business/?p=6561 The new merger wave may bring more hostile takeovers than ever

THE battle for Cadbury is already turning nasty. One week after Kraft, an American food conglomerate, made an unsolicited bid for it, the British confectioner hit back on September 12th. Roger Carr, Cadbury’s chairman, wrote an open letter in which he described the bid as an “unappealing prospect” that would serve only to lock the chocolate-maker into Kraft’s “low growth, conglomerate business”. Kraft says it is pressing on regardless. It is expected to have to improve its terms to win over Cadbury’s shareholders. Officially, Kraft’s offer is friendly. Irene Rosenfeld, its chief executive, says she looks forward to “constructive dialogue” with Cadbury. But in reality the moment Kraft made public its rejected offer, the bid became hostile. In this respect, it may mark the start of a trend.

Kraft’s offer for Cadbury is one of several recent signs that life is returning to the mergers and acquisitions (M&A) business. Executives and investment bankers have returned from their summer holidays in better spirits, confident that even if recovery may be slow the worst is over for the economy and that credit is becoming available. Share prices, though off their lows, look cheap by historic standards. These are ideal conditions for a new merger wave to form.
1
A tempting target

Yet compared with previous waves, the conditions are also far more favourable for hostile bids—perhaps on a scale not seen since, or even surpassing, the 1980s. That was when such deals, often accompanied by predictions of cutting jobs to boost profits, earned themselves such a bad name that a concerted attempt was made to abolish them even in free-market America.

It came close to succeeding, and hostile takeovers became as rare in the 1990s as an underpaid chief executive. Indeed, as recently as 2002, worldwide there were only 15 hostile bids of $500m or more. That number increased from the middle of this decade to a high of 81 in 2006, before plunging along with all other M&A activity (except shotgun marriages of troubled banks) during the economic crisis. This year, as of the end of July, there had been 21 hostile bids.

There are two main reasons why, in the words of a new report by the financial-strategy team at Citigroup, “hostile M&A is poised to surge”. The report, “M&A: Hostility on the Horizon”, by Carsten Stendevad, Anil Shivdasani and Gavriel Kimyagarov, notes that there has been a sharp reduction in the protections that managers can use to resist a hostile bid. In the 1990s there had been a dramatic increase in the adoption by firms of so-called “poison pills” that could take effect in the event of a hostile bid, such as the ability of the firm to issue vast amounts of shares to friendly investors, thereby greatly reducing the value of shares already bought by the bidder and making the price of buying a controlling stake prohibitively high. Likewise, many firms adopted “staggered boards” in which only some directors (say, one-third of the board) were up for re-election in any given year, making it a long and expensive process for shareholders to vote in a board favourably inclined to a bidder.

However, shareholder activists have in recent years had great success in getting poison pills and other defences against hostile takeovers removed. Proposals to scrap poison pills became a regular feature on annual proxy votes, often garnering the support of enough shareholders to make a difference. According to the Citigroup report, in 2002 some 300 of the companies in the S&P 500 index—in other words, 60% of them—had a poison pill, and 302 had a staggered board. As of July 31st 2009 this had fallen to 94 poison pills (19%) and 164 staggered boards (33%).

In the aftermath of the economic crisis, low share prices make lots of firms look more attractive as targets than they have been for many years, while the removal of defences makes it increasingly hard to resist a hostile offer. That is why the Citigroup report argues that firms should try harder to make themselves less attractive as targets by, say, doing the sort of restructuring that an acquirer might do, or even reintroducing shareholder defences.

Various academic studies have found that anti-takeover defences seem to pay. The premium of the purchase price over the share price before the bid is higher on average when the target has a poison pill or staggered board than when it does not. Having an anti-takeover defence can allow managers to extract a higher price from a bidder.

This data is likely to be mentioned at every opportunity by company bosses as they now try to restore their defences. However, it will be surprising if they convince many shareholders, as they were mostly already aware of the data when they voted to remove poison pills and staggered boards. Rather than placing their faith in controversial statistical analysis, they preferred a system that made sense to them as owners, by allowing them to sell their firm to a bidder without fear of the sale being sabotaged by the bosses they employ. That is why most companies are likely to remain relatively defenceless, and Kraft’s bid for Cadbury will be but one of many in this coming era of hostility.

It remains to be seen whether this wave of hostile bids will turn out any better than those in the 1980s. Many of them ended up in bankruptcy, although their overall effect was to make the economy more efficient, as relatively unproductive firms were taken over and reorganised.

One big positive difference this time, though, is that hostile bids are more likely to be driven by a clear business strategy (such as Kraft’s attempt to buy Cadbury to plug its products into the Kraft distribution system) than by the ready availability of debt to “financial” buyers. Although credit markets are reopening, they are not yet ready to lend heavily to private-equity firms. This should mean that there is no immediate repeat of the leveraged buy-out hostile bids of the 1980s, many of which were disastrous and gave the whole business of takeovers and mergers a bad name. – The Economist

]]> 4566 2009-10-01 19:52:41 2009-10-02 02:52:41 open open business-view-the-age-of-hostility publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6561#comments wfw:commentRSS http://zikkir.com/business/6561/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6561 syndication_item_hash 9472e034fec0b062d7a04a12fb9e07da BofA lines up candidates to replace chief http://www.ethiopianreview.com/business/4565 Fri, 02 Oct 2009 02:54:33 +0000 http://zikkir.com/business/?p=6563 Bank of America’s board of directors will meet on Friday to begin the process of selecting a successor to Ken Lewis as chief executive, with potential candidates including several outside executives with previous experience at the lender.

Among those candidates are Al de Molina, chief executive of GMAC and former chief financial officer of BofA; Jim Hance, another former CFO at BofA who is now with the Carlyle Group; and Michael O’Neill, who had been CFO of the old San Francisco-based Bank of America in the 1990s, before its merger with NationsBank to create the current company.

Internal candidates include Brian Moynihan, BofA’s head of consumer banking, and Barbara Desoer, president of home loans and insurance.

While the board was surprised by Mr Lewis’ announcement on Wednesday, some directors have been thinking about succession since late April, when shareholders voted to strip Mr Lewis of his title as chairman and the board named longstanding director Walter Massey to the post.

According to a source familiar with the matter, a sub-group within the board – including Mr Massey and Chad Gifford, former chief executive of Fleet Financial, acquired by BofA in 2004 – have discussed Mr de Molina, Mr Hance and Mr O’Neill as potential successors to Mr Lewis.

GMAC said on Thursday: “Al de Molina continues to focus on the turnround at GMAC. . . that began when he was named CEO in April of 2008.

“During the past 20 months under de Molina’s leadership GMAC has achieved many important milestones.”

Neither Mr O’Neill nor Mr Hance could be reached for comment.

Mr Lewis, who will remain on the board until he steps down as chief executive at the end of the year, is expected to take part in choosing a successor. Among the internal candidates he would be expected to support are Greg Curl, BofA’s chief risk officer, and Joe Price, BofA’s current chief financial officer.

“I think they’ve got a great opportunity to hire someone who is going to take a great franchise and finally achieve its potential, but they have to go outside the company,” said Tom Brown, a hedge fund manager and co-owner of Bankstocks.com.

“Based on my discussions, I don’t think they’re going to name an insider,” he added. – FT.com

]]> 4565 2009-10-01 19:54:33 2009-10-02 02:54:33 open open bofa-lines-up-candidates-to-replace-chief publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6563#comments wfw:commentRSS http://zikkir.com/business/6563/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6563 syndication_item_hash 4217aa2b9d890bedd15d42a49ecec20c Russia Sakhalin-2 project gets extra $1.4 bln http://www.ethiopianreview.com/business/4564 Fri, 02 Oct 2009 02:57:19 +0000 http://zikkir.com/business/?p=6565 Sakhalin Energy, a group led by Russia’s Gazprom (GAZP.MM: Quote, Profile, Research) and involving Royal Dutch Shell (RDSa.L: Quote, Profile, Research), has secured $1.4 billion of new funding for its Sakhalin-2 liquefied natural gas project, a news agency reported.

The money comes on top of $5.3 billion provided by the Japan Bank for International Cooperation and a consortium of international commercial banks, Interfax quoted Ian Craig, the head of the project, as saying on Thursday.

The new funds will be paid in soon, Craig told the agency.

The LNG project, sited on the Russian Pacific island of the same name, is one of the world’s largest. The Sakhalin consortium also includes Japan’s Mitsui (8031.T: Quote, Profile, Research) and Mitsubishi (8058.T: Quote, Profile, Research).

Gazprom bought control of the $22 billion venture in 2007 after a lengthy dispute, forcing Royal Dutch Shell — the project’s former leader — and its partners to reduce their holdings.

Sakhalin Energy plans to produce 9.6 million tonnes of LNG per year by 2011.

According to the head of Gazprom’s export unit Alexander Medvedev, the energy giant aims to produce up to 17 million tonnes of LNG at Sakhalin-2 and its Shtokman project in the Arctic by 2020, Interfax reported.

Gazprom has also pencilled in the Yamal Peninsula as a region for LNG production under a long-term development programme that aims to increase Russia’s share of the global market to more than 20 percent from just a few percent currently. – Royal Dutch Shell plc .com

]]> 4564 2009-10-01 19:57:19 2009-10-02 02:57:19 open open russia-sakhalin-2-project-gets-extra-1-4-bln publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6565#comments wfw:commentRSS http://zikkir.com/business/6565/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6565 syndication_item_hash daa09635631c47f443e117f393c3fd0c An insiders view of Shell Exec Tom Botts http://www.ethiopianreview.com/business/4563 Fri, 02 Oct 2009 03:00:50 +0000 http://zikkir.com/business/?p=6567 From our archives 2 February 2006…
FROM A SHELL INSIDER

Hello Alfred

Below is the crap we receive from our ‘leader’. It continues to baffle me that these politicians keep finding hollow words for their messages that never change. This cowboy from Wyoming expects a few things to be different this year (see bullet points at the bottom). This means in his eyes:

- We are NOT honest to each other.

- We do NOT learn quickly from mistakes

- There are gaps in the Operating Model (actually his personal invention)

- We do not simplify things and try to make shortcuts

All these statements are actually correct!!

Good to hear this from the ‘leader’ who is very good at scaring the hell out of his underlings and who simply will quench any opinion (and the bringer of that opinion) which does not lead to more bonus for himself. He is the prime example of how NOT to make a learning organisation.

A true learning organisation must be especially honest to itself. Bad news must travel fast without killing the messenger. And people must have fun. The rest will then follow automatically.

But surrounding oneself with sycophants, being very angry when bad news surfaces, destroying the messengers of the bad news and then publishing crap like the stuff below, is like in the old Kremlin days. They said something and did something else. We all know what happened to them.

I am so glad your website is open for sharing this with others.

A disgruntled shell employee.

LEAKED SHELL INTERNAL DOCUMENT DATED 30 JANUARY 2006

Message from Tom on 2005 Performance and Looking Ahead
30-Jan-2006
Tom Botts, Executive Vice President – Europe

Colleagues,

First, let me wish each of you a happy and safe New Year. I hope most of you were able to take some time off, relax, and spend time with family and friends. EP Europe is now in its third year—it’s hard to believe. I want to tell you I am very proud of the progress we have made on many fronts. At the same time, I also fully recognise the many challenges we still have in front of us to really make EPE Europe ‘be all it can be’. The key point for me is we are delivering very strong financial returns to the Group and our plateau production forecasts for the future extend further in time than ever before. In short, we are a cash engine for the Group and there is still a long future ahead of us.

Clearly the lowlights of 2005 are the four fatalities. We are making every effort possible to gain and embed all the learnings from these tragedies. Performance against our business targets was mixed. We generally did well on gas production, project delivery, providing growth opportunities, environmental performance, and recruiting new graduate and experienced people. We missed our targets on liquids production, opex, and of course have struggled getting the Corrib project back on track. Details of Group and EPE performance and the Business Performance Factor will be outlined in early February with the Q4 Business Results.

Looking ahead, we must shoot to meet or beat our EP Roadmap targets as outlined in the 2005 EPE Business Plan. Given the critical role we play in the Group, we must focus – month on month – on delivering our part. Our first priority remains safety. Thereafter the Roadmap targets of reserves, production, growth, project delivery, operational excellence and cost. All this is underpinned by using our professional skills and talents to their best effect. Those skills are our strength in EPE and they have really impressed me over the past 3 years. But we need to continue to help our people develop and contribute more effectively.

I know that last part is most important. If we don’t get that right, we can’t achieve what we’ve set out to do. Along those lines, I have sent a letter to your home address outlining the upcoming EPE Connecting Days which builds on the enhanced engagement we started at the ELN conference in Groningen in November. The EPE Connecting Days aim to bring together the entire EPE community to collectively review where we have come from, where we are going, and how we can make EPE better. My ELT colleagues and I look forward to seeing you all there!

Lastly, a word on what I expect to be different this year. Starting with myself and my Leadership Team, we will:

Have more honest talk and listening – bring issues into the room
Highlight successes, learn quickly from mistakes, and move on
Address the gaps in the operating model so we can maximise business value
Make the most of the EPE Connecting days to reengage the organization.
Find ways to simplify things, one step at a time

We are making progress and putting in place a sustainable foundation and legacy. As Jeroen said in his year end message, none of us joined Shell to be second best. If we stay on course, I know we will be a winning team!

Tom

Message from Tom on 2005 Performance and Looking Ahead
30-Jan-2006
Tom Botts, Executive Vice President – Europe – Royal Dutch Shell plc .com

]]> 4563 2009-10-01 20:00:50 2009-10-02 03:00:50 open open an-insiders-view-of-shell-exec-tom-botts publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6567#comments wfw:commentRSS http://zikkir.com/business/6567/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6567 syndication_item_hash 60b43e946dce95adf5404b0e55d2e1e1 BofA settlement frees McCann for UBS http://www.ethiopianreview.com/business/4562 Fri, 02 Oct 2009 03:01:58 +0000 http://zikkir.com/business/?p=6569 Robert McCann, former head of Merrill Lynch’s “thundering herd” of financial advisers, has settled his lawsuit against Bank of America over the duration of his non-compete agreement, clearing the path for him to become the head of UBS’ wealth management operations in the Americas later this month.

Mr McCann, 51, left as head of Merrill’s army of 16,000 financial advisers in early January, following BofA’s acquisition of Merrill, when his responsibilities had been greatly reduced. In a lawsuit filed against BofA in August, Mr McCann claimed that the bank had accepted his resignation, placing him on paid “garden leave”, then reversed itself, terminating him and cutting off his salary.

Mr McCann’s suit also claimed that BofA would not let him take another position in the financial services sector until next January, and that the former Merrill Lynch wealth management chief was owed tens of millions of dollars as part of his severance.

The terms of the deal were not disclosed, but it is believed that Mr McCann and BofA also reached a financial settlement along with a compromise on when he could return to work.

The settlement, and Mr McCann’s expected re-emergence back to the financial services industry as head of UBS Paine Webber’s network of thousands of brokers, raises the stakes in the battle for advisory clients in the US, and could continue the year-long realignment of power that has taken place among the top players in the industry.

In January, BofA acquired Merrill largely to graft the power of Merrill’s “thundering herd” onto its own base of “mass affluent” clients.

Morgan Stanley entered into a joint venture with Citigroup early this year, acquiring a majority stake in Smith Barney to form Morgan Stanley Smith Barney.

Along with the corporate realignment, a high-stakes game of “musical chairs” has played out among top executives at the biggest networks.

Following his resignation, Mr McCann was replaced by a deputy, Dan Sontag, who had grown up in the Merrill system.

In August, BofA hired Sallie Krawcheck as president of global wealth management, a position that was greater in scope than the one held by Mr McCann. Ms Krawcheck had left Citigroup a year earlier, where she had been head of the Smith Barney unit. Her arrival at BofA sparked the resignation of Mr Sontag.

Mr McCann had been put in charge of Merrill’s brokers in 2005, replacing James Gorman, a McKinsey-trained executive who headed the unit since 2001. Mr Gorman eventually moved to Morgan Stanley, where he was put in charge of that bank’s wealth management business.

Mr Gorman orchestrated the joint venture deal involving Smith Barney early this year and headed up the combined operation. Earlier this month, Morgan Stanley announced that Mr Gorman would succeed John Mack as the bank’s chief executive, effective in January. – FT.com

]]> 4562 2009-10-01 20:01:58 2009-10-02 03:01:58 open open bofa-settlement-frees-mccann-for-ubs publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6569#comments wfw:commentRSS http://zikkir.com/business/6569/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6569 syndication_item_hash 32c098330b1a800eea1abe6d4185aa34 JPMorgan to build investment business overseas http://www.ethiopianreview.com/business/4561 Fri, 02 Oct 2009 03:03:28 +0000 http://zikkir.com/business/?p=6571 JPMorgan Chase’s investment bank is planning a push to win more business outside the US by building on the group’s financial ties with companies around the world, its new head said.

Jes Staley, who was picked to lead JPMorgan’s securities unit in a surprise reshuffle on Tuesday, said he did not plan big changes to the business’s trading and risk-taking strategies.

“We are not planning any dramatic changes but we want to further harness the power of the international franchise,” Mr Staley, who was head of JPMorgan’s asset management business, told the Financial Times.

His comments will help quash talk that JPMorgan’s top managers, led by its chief executive, Jamie Dimon, were unhappy with the strategies and risk approach taken by the previous management team.

Mr Staley has told associates he is reluctant to revolutionise the tactics that helped the bank avoid the worst of the crisis and emerge as one of Wall Street’s strongest players.

But he said he wanted to deepen the securities’ business relationship with overseas companies by using JPMorgan’s global network of banking clients.

“JPMorgan’s reach in inter­national markets is unparalleled and this is going to be a key strength in an increasingly globalised world,” he said.

International banks such as Citigroup, HSBC and Deutsche Bank have tried to use their lending relationship to overseas companies to help their investment banks win business. They typically argue that banking contacts with business leaders give them an edge over “pure” investment banks such as Goldman Sachs and Morgan Stanley.

Under Bill Winters and Steve Black, Mr Staley’s predecessors, JPMorgan’s investment bank has made significant inroads outside the US. Nearly half of its revenues last year came from overseas.

Mr Winters was ousted in the overhaul after Mr Dimon ruled he would not be a candidate to succeed him as head of JPMorgan. That left Mr Staley, 52, as the heir apparent. – FT.com

]]> 4561 2009-10-01 20:03:28 2009-10-02 03:03:28 open open jpmorgan-to-build-investment-business-overseas publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6571#comments wfw:commentRSS http://zikkir.com/business/6571/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6571 syndication_item_hash 68b3c13d8f2245b60b2bd9df26672a2c Spotlight on JPMorgan’s Europe vision http://www.ethiopianreview.com/business/4560 Fri, 02 Oct 2009 03:04:30 +0000 http://zikkir.com/business/?p=6573 If anyone needed a reminder of how ruthless the world of investment banking is, this week’s unceremonious ousting of Bill Winters from JPMorgan Chase should have done the trick.

Public furore over bankers on Wall Street and in the City of London scooping hefty bonuses a year after the financial crisis hit, has in recent weeks partly obscured the fact that at the top of the executive pyramid at JPMorgan and at those of its rivals, there are still some very sharp elbows.

Mr Winters, an American who had worked at JPMorgan for 26 years and held the post of co-head of the invesment banking unit until his ousting, has long been one of the most senior bankers in London.

The 48-year-old enjoys enviably close ties to the City’s leading figures in business, politics and finance.

His surprise departure, after apparently losing out to Jes Staley, another veteran JPMorgan banker, in the still nascent battle to succeed Jamie Dimon, the current chief executive, has triggered fevered speculation not only about his own future, but about the bank’s future shape in Europe.

About 40 per cent of JPMorgan’s investment banking revenues come from Europe, the Middle East and Africa.

In a sign of the the unit’s importance, Mr Staley flew over from New York and was already meeting with senior executives in London on Wednesday, just 24 hours after being appointed head of the investment bank as part of a wider shake-up of top management.

Insiders said Mr Staley was likely to take some time to determine how the European business should be managed, and that appointing a successor to Mr Winters in London was some ways off.

They also emphasised Mr Staley’s international pedigree as the former head of corporate finance in Brazil and general manager of the bank’s Brazilian brokerage arm. “We’re going to put one foot in front of another and get through the fourth quarter,” said one insider. “The idea is not to rupture a ship that’s going strongly.”

One key issue for the company in the coming months will be whether it decides to exercise its option to take full control of JPMorgan Cazenove, its joint venture partner in the UK since 2004.

Mr Winters was instrumental to that deal and also sat on the venture’s board. With the option coming due in February, his departure leaves an empty chair at the negotiation table.

As for Mr Winters’ own future, friends close to the publicity-shy banker said that he was too stunned by Mr Dimon’s decision to oust him to consider his next move yet.

He had already hit the headlines once before this week after it was reported he told an investment conference in London that “greedy bankers” were in part to blame for the financial crisis during a debate on whether retail and wholesale banks should be separated. Mr Winters, friends note, won that debate by some way.

He has been offered senior positions before, and was reportedly close to taking a top job at Royal Bank of Scotland after Sir Fred Goodwin’s spectacular fall from grace.

While taking the chief executive role at another bank in the UK is a possibility, those positions are relatively thin on the ground. Tom King, Citigroup’s former head of investment banking in London, is already considering a senior job at Barclays Capital, Barclays investment banking arm, after resigning from Citigroup earlier this month.

Wherever Mr Winters ends up, he is likely to earn more than he did in his final full year at JPMorgan. He agreed to forgo cash and stock bonuses for 2008 and was awarded 700,000 so-called stock appreciation rights, similar to employee stock options.

Mr Staley, the new heir apparent, received 500,000. – FT.com

]]> 4560 2009-10-01 20:04:30 2009-10-02 03:04:30 open open spotlight-on-jpmorgan%e2%80%99s-europe-vision publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6573#comments wfw:commentRSS http://zikkir.com/business/6573/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6573 syndication_item_hash 9081a946a37c3896b95bcf7eb957f9d7 BofA agrees $1bn part sale of asset manager http://www.ethiopianreview.com/business/4559 Fri, 02 Oct 2009 03:05:29 +0000 http://zikkir.com/business/?p=6575 Bank of America agreed to sell part of its Columbia Management business to Ameriprise Financial for about $1bn, raising cash towards the eventual repayment of taxpayer funds.

The deal concerns Columbia’s long-term asset management business, which had approximately $165bn under management as of June 30.

This rids BofA of an operation that became redundant following its acquisition of Merrill Lynch.

BofA put the entire business on the block this year, but after fielding disappointing offers, decided to sell the short-term and long-term businesses separately.

“The acquisition of Merrill Lynch provided an opportunity to look at our entire portfolio of businesses with an eye toward strengthening our capital position while ensuring that we continue to offer the broadest possible solutions to our customers and clients,” said Joe Price, BofA’s chief financial officer.

The bank, based in Charlotte, North Carolina, said it “continues to consider alternatives” for the cash-based, short-term part of the business, which is currently managed by Columbia.

BofA, which has received $45bn in funds from the government’s troubled asset relief programme in the past year, hopes to pay back a portion of that money by the end of this year.

In May, the Treasury Department’s “stress test” called for BofA to raise $33.9bn to shore up its capital position.

BofA raised $4.5bn from the sale of a stake in the China Construction Bank, and $13.5bn from selling common stock. BofA converted $9bn worth of preferred shares into common stock, and accumulated several billion dollars in deferred tax assets and the elimination of dividends related to preferred stock.

According to BofA, Columbia Management became “redundant” after the acquisition of Merrill Lynch because Merrill owned a 49 per cent stake in BlackRock.

But Richard Bove, an analyst with Rochdale Securities, said BofA had been looking to sell Columbia for several years. The unit, originally launched in Oregon in 1967, is an amalgam of several asset management businesses acquired by Fleet Financial Group in 1997. – FT.com

]]> 4559 2009-10-01 20:05:29 2009-10-02 03:05:29 open open bofa-agrees-1bn-part-sale-of-asset-manager publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6575#comments wfw:commentRSS http://zikkir.com/business/6575/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6575 syndication_item_hash ea1160a227b4436151148fa31d7dae50 Jes Staley takes top role http://www.ethiopianreview.com/business/4558 Fri, 02 Oct 2009 03:06:23 +0000 http://zikkir.com/business/?p=6577 Jes Staley, 52, on Tuesday named chief executive of JPMorgan’s investment banking division, has spent three decades with the bank, two of them in the investment bank.

After joining the original JPMorgan in 1979, he worked in the Latin America division from 1980-1989. Based in São Paulo, he was head of corporate finance for Brazil and general manager of the bank’s Brazilian brokerage arm.

Mr Staley went on to become one of the founding members of JPMorgan’s equities business, as JPMorgan expanded its investment banking operations in the early 1980s.

He became head of the bank’s equity capital markets business before he was appointed chief executive of JPMorgan’s private bank, catering to wealthy individuals, in 1999. In the two years under his watch, the private bank tripled its profits, JPMorgan said.

In 2001, after JPMorgan was bought by Chase Manhattan, Mr Staley took over the combined banks’ asset management division, later helping to expand the bank’s reach into hedge funds and other alternative assets. In 2004, Mr Staley was instrumental in the bank’s acquisition of a 55 per cent stake in Highbridge Capital Management for about $1.3bn.

Earlier this year, the bank opted to buy the rest of the fund.

The unit had a profit of $352m in the second quarter, down 11 per cent over the second quarter of 2008, while the unit’s assets under management slipped 1 per cent to $1,200bn. – FT.com

]]> 4558 2009-10-01 20:06:23 2009-10-02 03:06:23 open open jes-staley-takes-top-role publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6577#comments wfw:commentRSS http://zikkir.com/business/6577/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6577 syndication_item_hash 101810375defada83ce761d9422ae11e Bold JPMorgan shake-up blows Winters away http://www.ethiopianreview.com/business/4557 Fri, 02 Oct 2009 03:07:08 +0000 http://zikkir.com/business/?p=6579 Bill Winters will remember his latest birthday for a long time.

It was while preparing to celebrate his 48th year this past weekend that Mr Winters, the co-head of JPMorgan Chase’s investment banking unit, heard he had been ousted from the company he had worked for most of his professional life.

Mr Winters could not be reached but people close to the situation said the news, which was part of a wider shake-up of JPMorgan’s senior management, was not delivered by Jamie Dimon, the company’s all-powerful chief executive.

“Bill did not see it coming at all. It was a complete bolt from the blue,” a person close to Mr Winters said.

Mr Dimon’s surprise decision to oust Mr Winters and elevate Jes Staley, a 30-year employee of JPMorgan, to the role of the investment banking chief and de facto heir apparent is a bold one. It also involved moving Steve Black from co-head of investment banking to executive chairman of that unit.

In one sudden move, Mr Dimon had reshuffled the only management team among the six biggest US banks not to suffer a quarterly loss during the crisis and broken up the “Bill and Steve” axis that had transformed JPMorgan’s investment bank into a significant Wall Street force.

Mr Winters began his career with the old JPMorgan in 1983, before it was bought by Chase Manhattan, and became known for building the bank’s pioneering European credit derivatives business in the late 1990s.

His experience as a risk manager helped the bank avoid many of the derivatives pitfalls that other banks stumbled into during the financial crisis.

Mr Dimon said he wanted to remove uncertainty over the group’s top hierarchy at a time when the business was doing well, as well as finding a successor for Mr Black, who has signalled his intention to scale down his workload.

“When you know you are going to make a decision that is good for the company, you should make it,” Mr Dimon told the Financial Times. “And it’s best to do it from a position of strength.”

Mr Black, a long-time associate of Mr Dimon from his Citigroup days, and Mr Winters ran a tight partnership of the investment bank after they were named co-chief executives of the unit in March 2004. The two were instrumental in persuading Mr Dimon of the merits of acquiring Bear Stearns, the failed investment bank, in March 2008.

Mr Black, who is based in New York, and Mr Winters, who is based in London, often described their relationship as a “marriage” noting that they had confrontations but were always able to patch things up. People close to the situation said the two had a row over a trading position in mid-June but stressed it had nothing to do with Mr Winters’ departure.

Partly thanks to the Bear takeover, JPMorgan’s investment bank now sits at the top of industry league tables for global equity capital markets, debt and syndicated loan deals as the bank has exploited its position of strength to build existing client relationships and win new business.

In global equity markets, it has worked on 14.6 per cent of deals in the year to date, up from a little more than 10 per cent at the same time last year, according to data from Thomson Reuters.

Mr Dimon’s lieutenants explained that the timing of Mr Staley’s appointment was driven by the fact that the company is about to start its 2010 planning process. The fourth quarter is also a period of low staff turnover for the investment bank, as most employees await to receive their bonuses – a factor that will give Mr Staley time to assess the unit’s talent and senior management without worrying about defections.

“It was my decision but the board has consistently asked us to put people in positions of responsibility so that they can gain experience to run the whole company,” Mr Dimon said.

Mr Staley’s ascension is not in itself a complete surprise – JPMorgan insiders had identified him as the most likely heir to Mr Dimon in the near term – but it leaves some questions over long-term succession.

At 52, Mr Staley is a year younger than Mr Dimon, who on Tuesday said he hoped to remain at the helm for “five years or more”.

If that is the case, Mr Staley could turn out to be a transitional chief executive until the next generation of leaders is groomed to succeed him.

Insiders point to a band of 40 to 45-year-old senior employees as the next batch of leaders.

They include Charles Scharf, head of the retail bank, Michael Cavanagh, chief financial officer, Mary Callahan Erdoes, who replaced Mr Staley as head of asset management, and Matt Zames, a high-flying investment banker. – FT.com

]]> 4557 2009-10-01 20:07:08 2009-10-02 03:07:08 open open bold-jpmorgan-shake-up-blows-winters-away publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6579#comments wfw:commentRSS http://zikkir.com/business/6579/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6579 syndication_item_hash fadfb73fc1cfdeb7c8dc403f357efaae FDIC considers calling for bank advances http://www.ethiopianreview.com/business/4556 Fri, 02 Oct 2009 03:08:11 +0000 http://zikkir.com/business/?p=6581 US banks will have to advance tens of billions of dollars to the cash-strapped fund protecting depositors at the Federal Deposit Insurance Corporation under a proposal to be to be put forward by regulators on Tuesday.

The fund, which insures up to $250,000 per depositor in each bank, has been depleted this year after the failure of 95 lenders. It now stands at about $10.4bn, the lowest since the peak of the savings and loan crisis in 1993.

Sheila Bair, FDIC chairman, has said the agency is considering “all options’’ to restore the fund, including tapping its credit line with the US Treasury of up to $500bn, imposing emergency fees on banks and asking banks to pre-pay industry fees.

The FDIC’s board, which meets on Tuesday to discuss options, is currently leaning towards asking banks to pay three years’ worth of its fees in advance, say people briefed on the discussions. For 2009, banks are set to pay an annual fee of about $12bn and a one-off emergency charge of $5.6bn.

The plan would allow the agency to get the cash it needs now while allowing the banks to avoid another big one-off charge. The banks would not have to recognise the charges on their balance sheets until the quarter when the fees were due. The proposal, which would be presented for public comment, is still under discussion.

But it comes amid growing resistance by the industry as well as some regulators against one-off fees.

US banks have steered clear of public comments on this issue. In private, many executives have complained that the FDIC’s drive to replenish the fund would drain much-needed resources from banks just as they are trying to rebound from the financial crisis. – FT.com

]]> 4556 2009-10-01 20:08:11 2009-10-02 03:08:11 open open fdic-considers-calling-for-bank-advances publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6581#comments wfw:commentRSS http://zikkir.com/business/6581/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6581 syndication_item_hash bf4fffd4ff6a2e05263aa0c0df79313d Greenpeace ends protest at Shell oil sands mine http://www.ethiopianreview.com/business/4555 Fri, 02 Oct 2009 03:10:30 +0000 http://zikkir.com/business/?p=6583 * Activists leave Alberta mine, face no charges

* Oil sands mine operating at normal production

* Greenpeace disappointed by Harper-Obama meeting (Recasts, with Greenpeace ending demonstration)

Greenpeace activists who occupied mining equipment at Royal Dutch Shell Plc’s (RDSa.L) Canadian oil sands project ended their protest on Wednesday after 1-1/2 days and were escorted away without facing charges, the environmental group said.

Shell said production at the Muskeg River mine, one of four oil sands projects in northern Alberta, operated at normal rates throughout the day as the demonstrators worked to spread their message that developing the oil sands hampers the fight against global warming.

The protest, which began with 25 activists and ended with 15, coincided with Canadian Prime Minister Stephen Harper’s visit with U.S. President Barack Obama in Washington on Wednesday.

Greenpeace spokesman Mike Hudema said the group was allowed to leave the mine after leaders spoke with company officials and the Royal Canadian Mounted Police.

The Harper-Obama meeting did not produce the results that climate change activists hoped for.

“We haven’t seen nearly enough concrete commitments from the Harper-Obama meeting that they will move quickly to help the world avert catastrophic climate change,” Hudema said.

The activists entered the mine, located north of Fort McMurray, Alberta, on Tuesday and locked down a massive dump truck and mining shovel. The company temporarily suspended production at the 155,000 barrel a day site, but resumed operations late in the day.

Hudema said there was a “cordial atmosphere” between demonstrators and Shell staff at the mine, and both sides stressed they had taken care to ensure the safety of everyone.

Shell said it is working hard to improve its environmental performance by developing a carbon capture and storage project for its oil sands operations, and by advocating a Canadian and international carbon cap and trade policy.

The Muskeg River mine’s other owners are Chevron Corp (CVX.N) and Marathon Oil Corp (MRO.N), with 20 percent each. It is one of four major oil sands mining operations near Fort McMurray, Alberta. – Royal Dutch Shell plc .com

]]> 4555 2009-10-01 20:10:30 2009-10-02 03:10:30 open open greenpeace-ends-protest-at-shell-oil-sands-mine publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6583#comments wfw:commentRSS http://zikkir.com/business/6583/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6583 syndication_item_hash b3655e0f2ce55f36001c94d067048264 SFO prepares to charge BAE Systems http://www.ethiopianreview.com/business/4554 Fri, 02 Oct 2009 03:13:28 +0000 http://zikkir.com/business/?p=6585 EXTRACTS

Corruption investigators were on Wednesday poised to press criminal charges over BAE Systems’ arms deals as the long-running probe into one of the country’s most-politically charged cases finally comes to a head, the Financial Times has learned.

A prosecution would provide a final showdown in a bitter case in which BAE has fiercely contested allegations that it paid hundreds of millions of pounds of bribes to win business in Saudi Arabia, Tanzania, South Africa, Romania, the Czech Republic and other countries.

The company is also under investigation by the US Department of Justice…

UK Serious Fraud Office Says Talks With BAE Systems

The U.K.’s Serious Fraud Office, or SFO, said Wednesday that it was still in discussions with defense giant BAE Systems PLC (BA.LN) over an inquiry into allegations of bribery and corruption.

The SFO, a government department that investigate allegations of serious and complex fraud, had never said there was a deadline in talks with the company, according to an SFO spokesman.

“There are still ongoing discussion between us and the company,” he said, adding that there would be no announcement Wednesday.

BAE Systems previously has faced accusations of bribery and corruption in its dealings abroad. In December, 2006, the SFO called off a two-year long probe of weapons sales to Saudi Arabia after the U.K. government raised concerns that it might jeopardize national security and antiterrorism cooperation with Riyadh.

A spokeswoman for BAE Systems couldn’t be reached immediately for comment. The company previously has denied all allegations of bribery. – ROYAL DUTCH SHELL PLC .COM

]]> 4554 2009-10-01 20:13:28 2009-10-02 03:13:28 open open sfo-prepares-to-charge-bae-systems publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6585#comments wfw:commentRSS http://zikkir.com/business/6585/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6585 syndication_item_hash 0aee79626c2ff23436ff0b11ff24d5f6 Bloomberg retracts claim that Shell will overtake BP in Production http://www.ethiopianreview.com/business/4553 Fri, 02 Oct 2009 03:15:29 +0000 http://zikkir.com/business/?p=6587 Bloomberg has published a revised version of its article “Shell Output Set to Pass BP With $40 Billion Spent on Projects“.
In response to the outcry in articles published on royaldutchshellplc.com accusing Bloomberg of publishing false information about Shell oil and gas output, claiming that it would “overtake BP”, Bloomberg has issued a corrected article printed below.
What was the involvement of Shell in the extraordinary false claim? The retraction of a market changing statement has been slipped out as a correction to the original article rather than a new article. This means that it is not getting the same news exposure as the false claim.

Shell May Increase Output at a Faster Rate Than BP (Correct)

(Corrects headline and first and second paragraphs to show that Shell may increase output at a faster rate but won’t overtake BP in overall production, in story originally published on Sept. 25.)

Royal Dutch Shell Plc, held back by almost seven years of falling production, may increase output at a faster rate than BP Plc after investing about $40 billion from Qatar to Brazil.

Shell will add 1 million barrels a day to capacity by the end of 2012, representing an average annual growth rate for oil and gas output of 2 percent to 3 percent between 2009 and 2012. That compares with growth of 1 percent to 2 percent at BP. Both estimates take into account the impact of natural field depletion.

Record investment in 2009 let Shell Chief Executive Officer Peter Voser expand programs including an oil-sands venture in Canada and the Sakhalin II project in Russia’s Far East. The outlook may help revive Shell’s London-listed shares, which have fallen this year even as competitors like BP gained.

“Shell will have so many startups in the coming five years that it will be impossible for European peers like BP to keep up,” said Peter Heijen, an Amsterdam-based analyst at Theodoor Gilissen Bankiers NV. He recommends buying Shell and predicts the stock will climb by 14 percent during the next year. “Shell has the biggest spending program and that is paying off.”

Shell, which reiterated the targets in a presentation yesterday, is Europe’s biggest oil company by market value, yet trails BP in production after militant attacks hurt operations in Nigeria. The exploration and production division is the top earner for oil companies. Its output growth estimates include an annual decline rate of 5 percent.

The Hague-based Shell’s output averaged 3.25 million barrels of oil equivalent a day last year, while BP pumped 3.84 million. BP, which reversed two years of falling production in 2008, pushed output above 4 million in the second quarter. BP anticipates output of 4.1 million barrels a day in 2012, including an unspecified decline rate.

Stock Performance

Shell is down 0.7 percent this year, underperforming a 3.9 percent gain for BP. Crude oil futures in New York have rebounded 49 percent since January.

Following a reserves scandal in 2004 when the company was forced to slash its proven reserve estimates, Shell accelerated investments into so-called unconventional projects such as a gas-to-liquids venture in Qatar.

Total, Exxon

Total SA, Europe’s third-biggest oil producer, predicts output will fall this year and expects projects in Africa to help boost production an average of 2 percent through 2014. Exxon Mobil Corp., the largest U.S. oil company, warned it may not meet a 2 percent production growth target this year. It still plans to boost output an average of 2 percent to 3 percent annually during the next half decade, Senior Vice President Mark Albers said Sept. 9.

Shell’s share of the Sakhalin II project in Russia will total 108,000 barrels a day of crude at peak production, while Athabasca will add another 60,000 barrels of oil equivalent a day from 2010. Liquefied natural gas projects in Qatar, Russia and Australia will boost output capacity to almost 26 million tons a year from 18.5 million tons in the second quarter once the Gorgon project starts in 2014.

“The projects are enormous and it remains to be seen whether they can deliver on the growth target,” said William Andrews, who holds Shell and BP stock among the $7 billion in assets he helps manage at C.S. McKee & Co. in Pittsburgh.

Debt Concerns

Increased output at Shell will come at the price of higher debt, which is estimated by Standard & Poor’s to exceed $35 billion by the end of 2010.

Expenses doubled between 2004 and 2008. The company estimates that Sakhalin II will cost $20 billion, while the Pearl GTL venture in Qatar required investment of as much as $18 billion. The expansion of the Athabasca oil sands development may cost as much as $11.6 billion.

“Though Shell has some material projects starting up in the next few years, it also has a chunk of its production in high-cost resources,” said Ivor Pether, a senior fund manager who helps manage the equivalent of about $9.9 billion at Royal London Asset Management. “The market naturally has some concerns about the high capex and rise in debt.”

Gearing, or the ratio of debt to equity, is set to triple by year-end as the company invests a record $32 billion. Voser pledged to cut capital expenditure in 2010 by about 10 percent and implement “substantial” job cuts after oil prices fell from last year’s record and the recession eroded demand.

S&P cited the prospect of “very sizeable debt increases” this year and next when it cut Shell’s long-term credit rating one step to AA, the third-highest investment grade, this month.

No Impact

The downgrade will have “no material impact” on Shell’s funding needs, said David Williams, a company spokesman, adding that the “balance sheet is a tool we’re using to underpin the investment program through the cycle.”

At the same time, S&P recognized that Shell’s cash flow is set to improve by 2011 to 2012 because of “forecast major contributions from various large projects.”

Shell has a 30 percent stake in the QatarGas4 project, which will have peak production of 280,000 barrels of oil equivalent a day. The Perdido deepwater project in the Gulf of Mexico and the floating oil production unit at the BC-10 field in Brazil will add another 96,000 barrels of oil equivalent a day to output. Shell, the operator of both projects, has a 35 percent stake in Perdido and a 50 percent interest in BC-10.

Shell owns Pearl GTL, which will process 320,000 barrels of oil equivalent a day into 140,000 barrels of gas-to-liquids products and 120,000 barrels a day of ethane.

“Shell is clearly a must own stock by mid 2010,” Alexandre Weinberg, a Brussels-based analyst at Petercam SA, said in a note to investors in August. “These assets should generate massive cash flow, while their plateau production characteristics should lower the decline rate from the current 5 percent to 4 percent.” – Royal Dutch Shell plc .com

]]> 4553 2009-10-01 20:15:29 2009-10-02 03:15:29 open open bloomberg-retracts-claim-that-shell-will-overtake-bp-in-production publish 0 0 post syndication_item_hash b8bb2764a48c0c4c37fba412b9f976cd syndication_permalink http://zikkir.com/business/6587 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6587/feed rss:comments http://zikkir.com/business/6587#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir BAE brinkmanship after bribery deal ultimatum leaves SFO guessing http://www.ethiopianreview.com/business/4581 Fri, 02 Oct 2009 08:55:00 +0000 http://zikkir.com/business/?p=6589 New SFO director gives arms giant until midnight on Wednesday to come to a settlement over bribery allegations

1
BAE Systems construction hall in Barrow-in-Furness. Photograph: Paul Ellis/AFP/Getty Images

The arms giant BAE tonight appeared to be ready to defy an ultimatum from the Serious Fraud Office to accept a plea deal over corruption allegations, or face prosecution.

The SFO, under its new director, Richard Alderman, gave BAE until midnight tomorrow to come to a settlement over bribery allegations that surfaced during six years of investigations in more than nine countries. But in a display of brinkmanship, BAE, Britain’s biggest weapons firm, refused to say whether it intended to come to terms. A spokesman, John Neilson, repeated a recent statement that BAE wanted to “allow the ongoing investigations to run their course”.

The standoff between the head of the SFO and Dick Olver, BAE’s chairman, is unusually public. Having allowed his 30 September “ultimatum” to be widely reported, Alderman must now act, if BAE does not settle by the deadline.

He will have to seek formal consent from the attorney general to prosecute. If not, BAE and the outside world will conclude that his threats are hollow.

Last week, senior SFO staff were in a bullish mood, after securing a ground-breaking bribery conviction against Mabey & Johnson, which makes bridges. The deal, in which the company replaced several directors, paid penalties of more than £6m and vowed to turn over a new leaf, was a legal first for the SFO and marked the start of what is hoped to be a series of anti-corruption breakthroughs.

BAE has already seen off one SFO director. Robert Wardle stepped down after he was pressured in 2006 to drop investigations into allegations that hundreds of millions pounds were secretly paid by BAE through Swiss banks to prominent Saudis. The then prime minister, Tony Blair, caused international uproar when he admitted interfering with the investigation, claiming it threatened “national security” as well as British aerospace jobs. Wardle too, wanted BAE to agree a deal under which they pleaded guilty to relatively minor charges, but he was refused permission by Blair to make the offer.

Alderman inherited four other “live” BAe cases, which continued to be investigated. These concern a secret 30% commission on sales of a military radar to Tanzania; alleged bribes behind a Czech deal to lease Anglo-Swedish Gripen warplanes; commissions paid on a sale of two obsolete frigates to Romania; and £100m in secret commissions in a £1.5bn weapons deal with South Africa.

A BAE lobbyist, Count Alfons Mensdorff-Pouilly, was temporarily arrested by Austrian authorities, and continues to be under investigation there.

The US justice department is carrying out a parallel investigation of BAE. – ROYAL DUTCH SHELL PLC .COM

]]> 4581 2009-10-02 01:55:00 2009-10-02 08:55:00 open open bae-brinkmanship-after-bribery-deal-ultimatum-leaves-sfo-guessing publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6589#comments wfw:commentRSS http://zikkir.com/business/6589/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6589 syndication_item_hash 5bc39b7a1a8f9bb7f8ad3363e0db0a17 Shell Deer Park Plant Work to Draw 1,100 Contractors http://www.ethiopianreview.com/business/4580 Fri, 02 Oct 2009 09:00:00 +0000 http://zikkir.com/business/?p=6591 Royal Dutch Shell Plc will employ about 1,100 contractors at its Deer Park, Texas, plant, as it begins a planned shutdown of an olefins unit at its chemical plant.

“The number of contract workers at Shell will peak at approximately 1,100 workers in late September and will decline as the projects are completed in mid-November,” the company said in a statement, explaining that the activity at Deer Park will snarl local traffic.

Shell announced the shutdown of a light/heavy olefins unit in a filing with the Texas Commission on Environmental Quality.

In a separate filing on Sept. 27, the company said it would shut an alkylation unit for work.

The Deer Park refinery can process 340,000 barrels a day, according to the company’s Web site. – ROYAL DUTCH SHELL PLC .COM

]]> 4580 2009-10-02 02:00:00 2009-10-02 09:00:00 open open shell-deer-park-plant-work-to-draw-1100-contractors publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6591#comments wfw:commentRSS http://zikkir.com/business/6591/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6591 syndication_item_hash 84b5ace82bcbdbd7df41c8fd94fc1413 Royal Dutch Shell Rumors Updated Tuesday 29 Sept 2009 http://www.ethiopianreview.com/business/4579 Fri, 02 Oct 2009 09:02:48 +0000 http://zikkir.com/business/?p=6593 1
Tuesday 29 Sept: Important Shell internal telecast today…?
Monday 28 Sept: Whisper from a worried engineer:

We hear that the 3 musketeers Marvin, Matthias and Malcolm are unable to reach agreement on whether everyone in jobgroup 2 and above has to re-apply for a job in Shell.

Matthias as a good Swiss with a Teutonic streak wants to go for the ‘Endlösung’ and have it all over with soon by forcing a date for re-application to all jobs by end October.

But now for once the big brain of Malcolm, the mother of all micro managers, starts to feel nervous since he realises that HR cannot cope with the enormous load. Even HR can do overpromise-underdelivery!!!

So, the target of reaching 3.25 million boe/day in 2012 is becoming more unlikely by the day. Nobody is working on maintaining production, completing the projects or filling the funnel with new projects, everyone is fighting for survival and will spend all his/her time on looking good to whomever may decide whether he/she stays or goes. Time is almost ripe for Exxon or a Chinese or Russian company to pounce and shred Shell to pieces.

Thank you Watts. Thank you Hofmeister. Thank you Brinded. Thank you van de Veer. Thank you Voser. Thank you all who have sold out Shell and are now speeding up the process of destroying it further.

More on Job Cuts

Royal Dutch Shell CEO Pete Voser first warned of job cuts months ago but has not been forthcoming on details.

The long delay has led to numerous press articles on the subject. The Times has reported that up to 10,000 jobs are expected to go.

This has all naturally led to speculation and rumor.

Here are some other rumors currently in circulation…

Some people apparently are whispering about cullings of 20-30% in Rijswijk and head office in The Hague…

EVERYONE in EP, with just a few exceptions, will have to reapply for their jobs…

OTHER RUMORS…
Motiva inside news, Motiva norco GM Ann-Marie has quit the company and going to work for another company outside of Shell. Maintenance Manager Tony Pastor going to convent.

Investigation said to have started at Shell Deer Park Refinery & Chemical Plant into people taking kickbacks from a contractor. We have the contractors name…
Received 25 Sept from a worker at Stanlow Refinery. “I attended a meeting this week organised by the operators union and decided I would join them to be protected at work. However I go into work today and all of us are told to go to meetings to be told by our supervision we should not join a union. I thought this was a illegal practice in the uk to be so anti union. I will still join the union but I will not let my boss know as I am scared it will go against me. There are many problems at Stanlow due to lack of investment and today we are told not to use the showers or drink the water or use safety showers as there is an employee in hospital seriously ill with legionaires disease.”
WARNING: These are rumors…
Attention Royal Dutch Shell Plc: If you confirm by email that any information printed under this headline is categorically untrue, it will be removed immediately. – ROYAL DUTCH SHELL PLC .COM

]]> 4579 2009-10-02 02:02:48 2009-10-02 09:02:48 open open royal-dutch-shell-rumors-updated-tuesday-29-sept-2009 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6593#comments wfw:commentRSS http://zikkir.com/business/6593/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6593 syndication_item_hash 26e4cb06b8c2ffa07c5e240a490eea17 UBS Bd Members Marchionne, Voser To Leave Bank http://www.ethiopianreview.com/business/4578 Fri, 02 Oct 2009 09:06:57 +0000 http://zikkir.com/business/?p=6597 UBS AG (UBS) Tuesday said that board members Sergio Marchionne and Peter Voser will leave the bank next year, citing the two managers’ busy schedules at their own companies.

UBS said that Marchionne, who is CEO of Fiat SpA (F.MI) and Chrysler Group LLC, and Royal Dutch Shell PLC (RDSB) CEO Voser both want to focus on their current demanding management positions.

UBS’ next annual general meeting is scheduled April 14, 2010. No replacement has been announced. Neither man was available for comment.

Analysts said the two managers’ resignations were partly expected as UBS’ most pressing problems have been solved during the past few months.

In addition, analysts said both executives face difficult challenges at their own companies as the global recession has hit both the car and oil industry.

Marchionne, who took over the CEO post at Chrysler in June after Fiat bought a 20% stake in the firm, is struggling to turn around the ailing U.S. car producer.

Voser, meanwhile, who took over the CEO post at Shell in July, is orchestrating a major revamp at the Anglo-Dutch oil giant that includes job and cost cuts.

Marchionne, a 57-year-old Canadian and Italian citizen, was elected to UBS’ board in 2007 and was long expected to become chairman after the bank was hit by massive write-downs during the financial crisis, due to his turnaround knowledge.

UBS had to write down around $50 billion in assets during the subprime crisis and needed to tap capital four times, including assistance from the government.

Although the bank has put most of its troubles behind, UBS is expected to suffer a net loss in 2009 because of write-downs but may turn around next year, according to analyst.

UBS itself hasn’t made specific earnings forecast. However, CEO Oswald Gruebel recently said that the bank is on track to turn around.

Voser, a 51-year-old Swiss national, who helped turn around Switzerland-based electrical engineer ABB Ltd (ABB), was also regarded as a potential candidate for UBS’ top job, which was recently filled by former Swiss cabinet member Kaspar Villiger.

“I would like to thank the outgoing board members Sergio Marchionne and Peter Voser for their strong contributions to the management of our firm,” Villiger said.

“With their comprehensive economic and entrepreneurial competence they supported UBS in difficult times and provided significant input to the stabilization and the successful initiation of the turnaround of our company,” Villiger added.

UBS said it will provide information at a later stage regarding candidates to succeed the outgoing board members.

UBS has long been criticized for its relatively weak board that under the reign of ousted chairman Marcel Ospel lacked banking and financial expertise.

Since Ospel’s ouster in 2008, UBS has appointed several high-ranking and experienced financial experts such as former Swiss National Bank member Bruno Gehrig, former Swiss Reinsurance Co (RUKN.VX) Chief Financial Officer Ann Godbehere and David Sidwell, former CFO of Morgan Stanley (MS).

Bank Sarasin analysts Rainer Skierka said the departure of the two managers “will give UBS an opportunity to further boost sector-specific competence and quality of its board composition.”

Bank Vontobel analyst Teresa Nielson, meanwhile, said that the bank is well on track to turn around under the stewardship of Villiger and CEO Gruebel, who was appointed in April.

Company Web site: http://www.ubs.com
- ROYAL DUTCH SHELL PLC .COM

]]> 4578 2009-10-02 02:06:57 2009-10-02 09:06:57 open open ubs-bd-members-marchionne-voser-to-leave-bank publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6597#comments wfw:commentRSS http://zikkir.com/business/6597/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6597 syndication_item_hash 1955019c1016d54729ee98c26b4b030f _encloseme 1 Leaked Shell Email Announces Senior Staff Changes at Motiva US Refineries http://www.ethiopianreview.com/business/4606 Fri, 02 Oct 2009 09:22:48 +0000 http://zikkir.com/business/?p=6617 Rumors posted earlier today confirmed

A leaked email dated 25 September 2009 sent on behalf of Tom Purves (Royal Dutch Shell Vice President Manufacturing US Gulf Coast and Motiva Vice President of Manufacturing), announces senior staff changes involving the Motiva Norco Refinery, the Shell Norco Chemicals Plant and the Motiva Convent Refinery.

Certain information has been removed to protect our insider source.

THE LEAKED SHELL/MOTIVA INTERNAL EMAIL

From: Deroche, Liz O MOTIVA-DMM/60
Sent: Friday, September 25, 2009 8:33 AM
Subject: Senior staff changes involving the Motiva Norco Refinery, the Shell Norco Chemicals Plant and the Motiva Convent Refinery

The following announcement is being forwarded on behalf of Tom Purves
***********************************************************************************

The following are senior staff changes involving the Motiva Norco Refinery, the Shell Norco Chemicals Plant and the Motiva Convent Refinery

Anne-Marie Ainsworth, General Manager Norco Refinery has decided to leave Motiva for other opportunities. I want to thank Anne-Marie for the important contributions she has made to both Motiva and Shell.

Recently completed agreements by the owners, allow us to take the next steps in consolidating Motiva Norco Refinery and Shell Chemicals Plant under a single General Manager and leadership team structure. Consequently I’ve asked, Hermie Bundick, currently serving as General Manager of the Norco Chemicals Plant to serve as the Interim General Manager of the Norco site – covering both refining and chemicals effective immediately. A GM Norco Site job will be posted on Open Resourcing soon and announced once resourcing activities have been completed.

Please join me in thanking Hermie for his willingness to help Norco during this leadership and governance transition.

Additionally, Tony Pastor, Engineering and Maintenance Manager Norco Refinery will move to Motiva Convent as Production Manager replacing Roxan Kraft whose new appointment was announced earlier. Given the leadership changes at Norco, the exact timing of Tony and Roxan’s transition will be taken under review and determined in the near future.

Given Tony’s move and agreements by the owners, we will also take steps to consolidate all of the engineering and projects and the maintenance and turnaround activities into two site leadership team roles. In the near future a Manager Engineering and Projects role and a Manager Maintenance and Turnarounds role will be posted on Open Resourcing. Engineering and Projects will have all hard side engineering and the project management function. Maintenance and Turnarounds will have all routine and special plant maintenance and the turnaround organization.

Please join me in thanking Tony for his many contributions to Norco and congratulating him on his new appointment.

Tom Purves
Vice President Manufacturing US Gulf Coast and Motiva Vice President of Manufacturing – ROYAL DUTCH SHELL PLC .COM

]]> 4606 2009-10-02 02:22:48 2009-10-02 09:22:48 open open leaked-shell-email-announces-senior-staff-changes-at-motiva-us-refineries publish 0 0 post _encloseme 1 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6617#comments wfw:commentRSS http://zikkir.com/business/6617/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6617 syndication_item_hash d3b1876b4ba8515d35736c818c14cf9a Updated: Rumors Circulating Inside Royal Dutch Shell… http://www.ethiopianreview.com/business/4605 Fri, 02 Oct 2009 09:23:53 +0000 http://zikkir.com/business/?p=6619 It is no secret that Shell is planning major job cuts.

Royal Dutch Shell CEO Pete Voser first warned of job cuts months ago but has not been forthcoming on details.

The long delay has led to numerous press articles on the subject. Just days ago the Times reported that up to 10,000 jobs are expected to go.

This has all naturally led to speculation and rumor.

Here are some currently in circulation…

Some people apparently are whispering about cullings of 20-30% in Rijswijk and head office in The Hague…

EVERYONE in EP, with just a few exceptions, will have to reapply for their jobs…

OTHER RUMORS…
Motiva inside news, Motiva norco GM Ann-Marie has quit the company and going to work for another company outside of Shell. Maintenance Manager Tony Pastor going to convent.

Investigation said to have started at Shell Deer Park Refinery & Chemical Plant into people taking kickbacks from a contractor. We have the contractors name…
Received 25 Sept from a worker at Stanlow Refinery. “I attended a meeting this week organised by the operators union and decided I would join them to be protected at work. However I go into work today and all of us are told to go to meetings to be told by our supervision we should not join a union. I thought this was a illegal practice in the uk to be so anti union. I will still join the union but I will not let my boss know as I am scared it will go against me. There are many problems at Stanlow due to lack of investment and today we are told not to use the showers or drink the water or use safety showers as there is an employee in hospital seriously ill with legionaires disease.”
WARNING: These are rumors…
Attention Royal Dutch Shell Plc: If you confirm by email that any information printed under this headline is categorically untrue, it will be removed immediately. – ROYAL DUTCH SHELL PLC .COM

]]> 4605 2009-10-02 02:23:53 2009-10-02 09:23:53 open open updated-rumors-circulating-inside-royal-dutch-shell%e2%80%a6 publish 0 0 post _encloseme 1 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6619#comments wfw:commentRSS http://zikkir.com/business/6619/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6619 syndication_item_hash 16236d2505150b14fa2d780766242ce4 Shell Output Set to Pass BP With $40 Billion Spent on Projects http://www.ethiopianreview.com/business/4604 Fri, 02 Oct 2009 09:25:00 +0000 http://zikkir.com/business/?p=6621 Royal Dutch Shell Plc, held back by almost seven years of falling production, is set to overtake BP Plc after about $40 billion of investment from Qatar to Brazil.

Shell will boost its oil and gas output by a third, adding 1 million barrels a day to capacity by the end of 2012, according to company estimates. That would push Shell to 4.25 million, more than the 4.1 million BP anticipates for 2012.

Record investment in 2009 let Shell Chief Executive Officer Peter Voser expand programs including an oil-sands venture in Canada and the Sakhalin II project in Russia’s Far East. The outlook may help revive Shell’s London-listed shares, which have fallen this year even as competitors like BP gained.

“Shell will have so many startups in the coming five years that it will be impossible for European peers like BP to keep up,” said Peter Heijen, an Amsterdam-based analyst at Theodoor Gilissen Bankiers NV. He recommends buying Shell and predicts the stock will climb by 14 percent during the next year. “Shell has the biggest spending program and that is paying off.”

Shell, which reiterated the targets in a presentation yesterday, is Europe’s biggest oil company by market value, yet trails BP in production after militant attacks hurt operations in Nigeria. The exploration and production division is the top earner for oil companies.

The Hague-based Shell’s output averaged 3.25 million barrels of oil equivalent a day last year, while BP pumped 3.84 million. BP, which reversed two years of falling production in 2008, pushed output above 4 million in the second quarter. Shell takes into account an annual decline rate of 5 percent as fields mature.

Stock Performance

Shell is down 0.7 percent this year, underperforming a 3.9 percent gain for BP. Crude oil futures in New York have rebounded 49 percent since January.

Following a reserves scandal in 2004 when the company was forced to slash its proven reserve estimates, Shell accelerated investments into so-called unconventional projects such as a gas-to-liquids venture in Qatar.

Shell predicts annual production growth of 2 to 3 percent going into 2011 and 2012 after output was held back in recent years by OPEC cutbacks and the attacks in Nigeria, where it’s the largest producer.

BP forecasts average annual output growth of 1 percent to 2 percent up until 2013, said David Nicholas, a company spokesman.

Total, Exxon

Total SA, Europe’s third-biggest oil producer, predicts output will fall this year and expects projects in Africa to help boost production an average of 2 percent through 2014. Exxon Mobil Corp., the largest U.S. oil company, warned it may not meet a 2 percent production growth target this year. It still plans to boost output an average of 2 percent to 3 percent annually during the next half decade, Senior Vice President Mark Albers said Sept. 9.

Shell’s share of the Sakhalin II project in Russia will total 108,000 barrels a day of crude at peak production, while Athabasca will add another 60,000 barrels of oil equivalent a day from 2010. Liquefied natural gas projects in Qatar, Russia and Australia will boost output capacity to almost 26 million tons a year from 18.5 million tons in the second quarter once the Gorgon project starts in 2014.

“The projects are enormous and it remains to be seen whether they can deliver on the growth target,” said William Andrews, who holds Shell and BP stock among the $7 billion in assets he helps manage at C.S. McKee & Co. in Pittsburgh.

Debt Concerns

Increased output at Shell will come at the price of higher debt, which is estimated by Standard & Poor’s to exceed $35 billion by the end of 2010.

Expenses doubled between 2004 and 2008. The company estimates that Sakhalin II will cost $20 billion, while the Pearl GTL venture in Qatar required investment of as much as $18 billion. The expansion of the Athabasca oil sands development may cost as much as $11.6 billion.

“Though Shell has some material projects starting up in the next few years, it also has a chunk of its production in high-cost resources,” said Ivor Pether, a senior fund manager who helps manage the equivalent of about $9.9 billion at Royal London Asset Management. “The market naturally has some concerns about the high capex and rise in debt.”

Gearing, or the ratio of debt to equity, is set to triple by year-end as the company invests a record $32 billion. Voser pledged to cut capital expenditure in 2010 by about 10 percent and implement “substantial” job cuts after oil prices fell from last year’s record and the recession eroded demand.

S&P cited the prospect of “very sizeable debt increases” this year and next when it cut Shell’s long-term credit rating one step to AA, the third-highest investment grade, this month.

No Impact

The downgrade will have “no material impact” on Shell’s funding needs, said David Williams, a company spokesman, adding that the “balance sheet is a tool we’re using to underpin the investment program through the cycle.”

At the same time, S&P recognized that Shell’s cash flow is set to improve by 2011 to 2012 because of “forecast major contributions from various large projects.”

Shell has a 30 percent stake in the QatarGas4 project, which will have peak production of 280,000 barrels of oil equivalent a day. The Perdido deepwater project in the Gulf of Mexico and the floating oil production unit at the BC-10 field in Brazil will add another 96,000 barrels of oil equivalent a day to output. Shell, the operator of both projects, has a 35 percent stake in Perdido and a 50 percent interest in BC-10.

Shell owns Pearl GTL, which will process 320,000 barrels of oil equivalent a day into 140,000 barrels of gas-to-liquids products and 120,000 barrels a day of ethane.

“Shell is clearly a must own stock by mid 2010,” Alexandre Weinberg, a Brussels-based analyst at Petercam SA, said in a note to investors in August. “These assets should generate massive cash flow, while their plateau production characteristics should lower the decline rate from the current 5 percent to 4 percent.” – ROYAL DUTCH SHELL PLC .COM

]]> 4604 2009-10-02 02:25:00 2009-10-02 09:25:00 open open shell-output-set-to-pass-bp-with-40-billion-spent-on-projects publish 0 0 post _encloseme 1 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6621#comments wfw:commentRSS http://zikkir.com/business/6621/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6621 syndication_item_hash 2ea22a30ce71abe7aa04de3fe592291c A battle waiting to happen http://www.ethiopianreview.com/business/4603 Fri, 02 Oct 2009 09:26:07 +0000 http://zikkir.com/business/?p=6623 It’s not quite Colonel Gaddafi’s big tent, but Prime Minister Putin appears to have built a very exciting snow house in Salekhard, the remote oil and gas outpost on the Yamal Peninsula.

A dozen top energy companies went to have a look and, as with visitors to the Libyan leader’s tent, there was a warm welcome.

But some of those who ducked into the igloo had reason to be a little nervous.

Mr Putin is asking for help in developing an enormous gas resource, and Peter Voser, Shell’s chief, is offering expertise in liquefied natural gas — a technology the Kremlin covets. LNG is key to the country’s efforts to keep pace with rival gas exporters, such as Qatar. It would give Russia new markets and make it less reliant on pipelines to Europe.

Shell is friends again with Mr Putin, but only three years ago it was given an almighty kicking for its arrogance. Shell had assumed that a one-sided contract to build an LNG plant, agreed years before when Russia was weak and run by a drunkard, would be regarded as law. Mr Putin told them where to put it.

Shell has learnt its lesson as have Mitsui and Mitsubishi, its Japanese partners. ExxonMobil, another visitor to the snow house, has digested a similar lesson about old contracts and soon there will be new deals on offer described by Mr Putin as “stable, long-term partnerships”. Those at the top of the industry understand the long term — big gas projects can last 30 years and more — but they also know that a long-term relationship is really nothing more than a series of short-term infatuations and bust-ups, marriages and divorces.

Forget long-term or short-term, there is a lot of gas and everyone needs it badly. Let the squabbles begin. – ROYAL DUTCH SHELL PLC .COM

]]> 4603 2009-10-02 02:26:07 2009-10-02 09:26:07 open open a-battle-waiting-to-happen publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6623#comments wfw:commentRSS http://zikkir.com/business/6623/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6623 syndication_item_hash 14ef1206cba093dfd8e3448476bbe1e1 _encloseme 1 Putin thaws on foreign firms as gasfield proves too big too handle http://www.ethiopianreview.com/business/4602 Fri, 02 Oct 2009 09:27:09 +0000 http://zikkir.com/business/?p=6625 Vladimir Putin played host to a dozen energy giants in a remote Siberian oil town yesterday, hoping to secure their help with developing the colossal gas reserves of the Yamal Peninsula.

Promising friendship and tax breaks, the Russian Prime Minister and former President told chief executives of some of the world’s biggest energy companies, including Royal Dutch Shell, Total, of France, and E.ON, of Germany, that he was inviting them to be long-term partners in developing Yamal.

The remote Yamalo-Nenets region contains one of the world’s biggest gas reserves, estimated by Gazprom at 16 trillion cubic metres — ten times the size of the UK’s remaining gas reserves.

Mr Putin’s warm welcome to the foreign oil companies was in marked contrast to the Kremlin’s concern only a year ago about conserving Russia’s strategic resources for Russians. Last year, in his final act as President, Mr Putin signed a law restricting foreign investment in 42 sectors, including energy. However, the recession is believed to have focused attention in the Kremlin on the huge cost of keeping the gas flowing.

Hosting yesterday’s meeting with the foreign energy companies in Salekhard, the capital of Yamal, Mr Putin said: “We would like you to consider yourselves participants in our undertaking. The main condition from our side is that partnerships should be stable and long-term.”

Also attending the Arctic meeting were ExxonMobil and ConocoPhillips, Mitsui and Mitsubishi, of Japan, Statoil, of Norway, ENI, of Italy, GDF-Suez, of France, Petronas, of Malaysia, and KOGAS, of Korea.

Mr Putin indicated that favourable fiscal treatment might be on offer.

Russia’s attitude towards foreign oil and gas investors has in the past been less welcoming. In 2006 Shell was forced to give up control of Sakhalin, a big liquefied natural gas project in Eastern Siberia, ceding half of its interest to Gazprom after a dispute over costs and alleged environmental violations.

TNK-BP, the joint venture that holds BP’s Russian interests, was also forced to hand over Kovykta, another giant gasfield, to Gazprom.

However, in June, Shell appeared to have found its way back into the Kremlin’s favour. The Dutch oil company was invited by Mr Putin to take part in a further development of Sakhalin while in the same month Total was given the chance to join Novatek, a Russian gas company, to develop a gas prospect in Yamal costing $1 billion.

Christopher Granville, a Russia analyst at Trusted Sources, the consultancy, said that project management as well as cash was behind the Kremlin’s change of heart. “There is a growing understanding that the ability to carry out major projects is something that these [foreign] companies can provide,” he said.

Gazprom is already investing huge resources developing Bovanenkovskoye, a huge gasfield in Yamal, and an 1,100-kilometre pipeline linking it to Gazprom’s network of pipelines bringing gas into Europe.

Gazprom is stretched financially with heavy borrowings and diminished cash flow because of the fall in gas prices in Europe. Last week Yuri Trutnev, the Russian Natural Resources Minister, complained that foreign investment rules were impeding Russia’s resource development. He accused Gazprom and Rosneft, the only two Russian companies engaged in offshore exploration, of underinvestment.

Meanwhile, foreign investors have complained that the resource threshold above which foreigners must relinquish control is a meagre 70 million tonnes of oil and 50 billion cubic metres of gas. Too low, they say, to be worth the effort. – ROYAL DUTCH SHELL PLC .COM

]]> 4602 2009-10-02 02:27:09 2009-10-02 09:27:09 open open putin-thaws-on-foreign-firms-as-gasfield-proves-too-big-too-handle publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6625#comments wfw:commentRSS http://zikkir.com/business/6625/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6625 syndication_item_hash 796b1af0dbae79fe4661a4d8e0400b35 _encloseme 1 Shell to sell Greek retail assets to Motor Oil http://www.ethiopianreview.com/business/4600 Fri, 02 Oct 2009 09:29:40 +0000 http://zikkir.com/business/?p=6629 Royal Dutch Shell (RDSa.L: Quote, Profile, Research) said on Thursday it will sell its Greek service stations network to local refiner Motor Oil (MORr.AT: Quote, Profile, Research) as it seeks more profitable upstream operations.

Motor Oil will buy about 700 Shell gas stations, 49 percent of Shell’s aviation fuel trading company and storage facilities of about 137,000 cubic metres for a total 219.1 million euros ($322.7 million), the Greek company said in a bourse filing.

In a separate deal, Motor Oil will buy Shell’s liquid gas operation for 26.5 million euros.

Shell is divesting refinery capacity assets and service stations to focus on large, sophisticated facilities in high growth markets.

Motor Oil bought Shell’s service stations to lessen its dependence on refining operations, which provide the bulk of its profits.

“Motor Oil bought the asset at a good price, especially considering that Shell’s gas stations have the highest throughput in the Greek market,” said George Katsanos, an analyst at HSBC.

Shell is the second oil major to sell its Greek fuel retail operations this year. In June, BP Plc (BP.L: Quote, Profile, Research) sold about 1,200 gas stations and oil storage facilities of 170,000 cubic metres for 359 million euros to Hellenic Petroleum (HEPr.AT: Quote, Profile, Research), Greece’s biggest refiner.

The Motor Oil-Shell deal consolidates Greece’s fragmented fuel retail market. Shell and Motor Oil’s service station unit Avin Oil have a combined market share of 22 percent, compared with about 30 percent for Hellenic.

The service stations sold will keep the Shell brand. (Reporting by Harry Papachristou; editing by Elaine Hardcastle) – ROYAL DUTCH SHELL PLC .COM

]]> 4600 2009-10-02 02:29:40 2009-10-02 09:29:40 open open shell-to-sell-greek-retail-assets-to-motor-oil publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6629#comments wfw:commentRSS http://zikkir.com/business/6629/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6629 syndication_item_hash 5c0a7937250aa4ff4be843fd1ad49f9f _encloseme 1 Russia Invites Foreign Cos To Join Arctic Gas Project http://www.ethiopianreview.com/business/4599 Fri, 02 Oct 2009 09:30:56 +0000 http://zikkir.com/business/?p=6631 Russia Thursday said it would welcome foreign energy firms lining up alongside local companies to develop a giant Arctic gas project, in the latest sign Moscow is seeking to bolster investment from overseas as it pulls out of recession.

Prime Minister Vladimir Putin said Russia is ready to widen cooperation with international oil and gas firms on the energy-rich Arctic peninsula of Yamal.

“The partnership on Yamal should be stable and long-term,” state television showed Putin telling the a group of foreign executives in the remote Arctic town of Salekhard, around 2,000 kilometers (1,240 miles) northeast of Moscow.

The project could be a boon for international producers like Royal Dutch Shell PLC (RDSA) and Exxon Mobil Corp. (XOM), which were both present in Salekhard and expressed an interest in developing the project along with state gas monopoly OAO Gazprom (GAZP.RS).

Russia is interested in attracting foreign partners to work on offshore developments under the condition that they provide Russian companies with access to their technologies and assets.

Thursday, Putin suggested Russian and foreign companies could swap assets as a way of cooperation on Yamal, and expressed hope that Russian firms would take advantage of French oil major Total S.A.’s (TOT) offer to sell some of its refineries in Europe.

Last week, Total’s Chief Executive Christophe de Margerie said the company may sell its least profitable refineries.

Tax incentives may be offered to companies willing to invest in Yamal, Putin said without going into detail.

Russia is seeking to beef up its presence in the global market for liquefied natural gas to a 20% share with the help of Yamal and the bigger Arctic Shtokman project. Gazprom’s Chief Executive Alexei Miller said he expects the global market for liquefied natural gas will double by 2020.

Miller announced that Gazprom had signed a memorandum of understanding with Korea Gas Corp. (036460.SE) on the construction of a liquefied natural gas plant in Russia’s Far East.

Gazprom operates Russia’s only LNG project, the Sakhalin-2, located on the Pacific island of Sakhalin. Shell was forced by Russian authorities to cede control of the project in 2007 – a move that scared off many investors, who saw it as a sign of the Kremlin’s attempt to renationalize its energy resources.

Thursday, however, Shell’s CEO Peter Voser said the company is ready to undertake a feasibility study for construction of a liquefied natural gas plant in Yamal.

Until recently, Russia had said it would develop its Arctic offshore reserves on its own. But earlier this month, Russian officials acknowledged that the technical and financial backing of foreign firms is needed for the challenging task of Arctic exploration, albeit under consortiums controlled by state companies.

Putin’s comments Thursday follow a speech to an investment conference in the Black Sea resort of Sochi last week, when the popular former president derided Russia’s inability to attract foreign direct investment, particularly compared with other developing nations like China.

Gazprom has trimmed its investment plans this year, with many analysts doubting its ability to bring online its flagship Arctic developments without foreign investment and expertise.

Web site: www.gazprom.ru
- ROYAL DUTCH SHELL PLC .COM

]]> 4599 2009-10-02 02:30:56 2009-10-02 09:30:56 open open russia-invites-foreign-cos-to-join-arctic-gas-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6631#comments wfw:commentRSS http://zikkir.com/business/6631/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6631 syndication_item_hash ad36922f984842171e925cbcb3a40903 _encloseme 1 Shell: Murder and cover-up on the high seas (updated) http://www.ethiopianreview.com/business/4598 Fri, 02 Oct 2009 09:32:35 +0000 http://zikkir.com/business/?p=6633 In 1974 it was reported that a Shell employee, Leo Rapmund (36), a crewmember on the Shell tanker, ‘Capulonix’, had gone missing, presumed lost overboard.

Over two decades later Rapmund’s family was contacted by a fellow crewmember at the time of the tragedy who wanted to clear his conscience about his knowledge of what really happened. Basically he revealed that Leo Rapmund had been murdered and there were many eyewitnesses to the crime.

The family claim that when they contacted Shell in 1995 with this alarming news, Shell and its lawyers (the most prestigious and expensive law firm in the Netherlands, De Braauw, Blackstone & Westbroek) denied any knowledge or responsibility and treated them in a disgusting and arrogant manner. All responsibility and accountability were rejected. The family was fobbed-off like a bunch of nagging children.

In 2008, the family contacted the acclaimed Dutch investigative crime reporter Peter R. de Vries who has his own Emmy Award winning TV programme. De Vries has been involved in a number of high profile cases including that of Natalee Holloway, the American student who mysteriously disappeared in 2005 while on a high school graduation trip to the Caribbean Island of Aruba.

De Vries approached Shell HQ in The Hague on 23 February 2009 and spoke with a senior Shell Public Relations official, Herman Kievits. His response was described as arrogant, at arms length and mainly on the lines that ‘we know nothing’. The same holds true for the lawyers.

On 26 April 2009 Peter R. de Vries presented the case in his TV programme. Afterwards a number of viewers contacted Shell and expressed disgust at these cover-ups by the oil company.

The viewers who reacted towards Shell, all received a rather clumsy standard reaction with many half-truths. The facts however are totally different and in his unique manner Peter R. de Vries dissects all the nonsense by Shell and provides substantial evidence on what really happened. He tracked down a dozen witnesses of the murder. They all confirmed that Leo Rapmund had been in a fight on board and was shoved overboard. He managed to just hang on to the railing but his assailant had kicked his hands so long that he had to let go and disappeared forever in the waves. This act was unanimously described as ‘murder’. The witnesses were greatly surprised that they never have been formally heard nor summoned in a court case.

De Vries also makes mincemeat of all the statements by Shell and detailed evidence is provided on his website. He exposes Shell as a bunch of liars. In the end Shell even had to admit in a letter to him that they ‘did not know’ what happened to the assailant and why he had not been charged. Shell even did not know whether the man had been fired or not. That in itself is strange: on a tanker of Shell a Shell employee is literally kicked overboard by another Shell employee, but Shell subsequently never informs how all this has been handled in a legal matter.

Therefore it was nice that in the meantime aging offender is still alive. He told de Vries that the handling of the case also amazed him. After the incident he was taken from Singapore to the head office in Rotterdam. There he had to hand-over his passport and was sent home on extended leave. After half a year he was summoned again, received his passport back as well as six months of pay, was in a proper manner shown the door by Shell and subsequently signed on immediately with another company as a sailor. Done. Never heard anything anymore.

In his summary de Vries states:
It is simply embarrassing that Shell tried to blame the relatives of Leo that they all that time have not understood and that they more or less tried to misuse the situation for their own benefit.

De Vries points out that a multinational faced with such unfortunate circumstances can apologise and compensate the victims family or deny all allegations and NEVER admit to anything. He concludes Shell is in the latter category behaving in a vicious and shameful manner.

After Leo Rapmund was killed, this is another form of character murder on the next of kin, which also remains unpunished. In that sense de Vries claims to have more respect for the aging assailant, who after so many years admits his act and honestly says he deserved prison. That Shell kicks the family and refrains from any form of an apology is a scandal. And it shows very clearly how the next biggest oil company of the world can be very small…..

The information comes from an article publish by Peter R. De Vries in Dutch. It includes reference to a long email to Shell setting out facts and evidence, which Shell ultimately agreed was basically correct.

http://www.peterrdevries.nl/

ARTICLE ENDS

The above article was sent in advance of publication to Mr Michiel Brandjes, Company Secretary and General Counsel, Royal Dutch Shell Plc. The relevant email is printed below. Since Shell chose not to reply on this occasion, we assume this is one of the times when Shell decided the safest thing to do is to say nothing.

From: Alfred Donovan
Date: Thu, 21 May 2009 10:36:37 +0100
To: “michiel.brandjes@shell.com”
Conversation: SHELL, DE HALVE WAARHEID EN DE DOOFPOT
Subject: SHELL, DE HALVE WAARHEID EN DE DOOFPOT

Dear Mr Brandjes

The draft article below is based on the article in Dutch recently published by Peter R. de Vries…

SHELL, DE HALVE WAARHEID EN DE DOOFPOT…. Shell, half the truth and the cover-up….

http://www.peterrdevries.nl/

The gist of the content was kindly provided by a Dutch Shell insider. Although not having time to provide a full translation, the draft does contain some translated passages.

Could you kindly point out any significant error of fact before I publish it? If Shell does not take issue with the facts as stated, then there is no need to reply. If I receive no response by 12 noon tomorrow UK time, I will assume that the information is true. If you need more time to check out matters, then kindly let me know when we can expect a response and we will take no further action until then.

If Shell is taking legal action challenging the facts, then please advise accordingly and we will await the outcome of any such litigation.

If you want to supply for publication with the article any related comment by Shell, we will happily publish it on an unedited basis.

This is an important story which deserves publication in the English language.

Regards
Alfred Donovan
UPDATE

We have been contacted by a close relative of the murder victim. Extracts from the relevant self-explanatory email correspondence, which contains an appeal for information, is printed below.

Hello,

My name is Cynthia Erne’. Leo Rapmund was my Uncle. When he was killed I was 12 years old. My Mother is Louise (Rapmund) VanDenEikhof, and was Leo’s sister. I had only recently found out all this information about his murder; I like the rest of the family never really understood what happened. I believe my Mother just feels too powerless to pursue anything with Shell, much to my dismay; but I wanted to thank you for your article and will continue to thank everyone who worked to bring this to light. I had been with my Uncle only a few times since we lived in the United States, but his visits were such fun, I could never forget him.

It has bothered me that nothing was done on behalf of our family, but my Grandmother has passed away, and my Aunt Emmeke passed away last year. I would certainly like the contact information for the attorney in the US that handled the Shell case with Wiwa. I personally am not one to let things rest, so I decided that if there is something that can be done, I would like to pursue it.

Consequently, if anyone has information on this matter kindly send it to me direct at: cfritzen2000@yahoo.com

Thank you again Alfred.

EMAIL ENDS

Some of the Capulonix crew in 1974…

* Ben Retrae (Scheepsgezel, 1974-1974)
*
* C.j. Bier (4th wtk, 1974-1975)
* Dick Van Eenige (Matroos, 1973-1974)
* Dirk Bakker (Hoofd bediende, 1974-1974)
* Frans Van Den Berg (Dekjongen, 1974-1974)
* Gerrit Jonkman (Scheepsvakman 2, 1974-1975)
* Jan R. Alsma (Hwtk., 1974-1975)
* Jan Smid (2e wtk, 1973-1974)
* Luuk Feunekes (3e wtk, 1973-1974)
* Pim Brandwagt (Scheepsgezel, 1973-1974)
* S. Harders (Master, 1974-1974)
* Toine Janssen (LL WTK, 1972-1973)
* Tom Scholte (2nd engineer, 1974-1974)
- ROYAL DUTCH SHELL PLC .COM

]]> 4598 2009-10-02 02:32:35 2009-10-02 09:32:35 open open shell-murder-and-cover-up-on-the-high-seas-updated publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6633#comments wfw:commentRSS http://zikkir.com/business/6633/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6633 syndication_item_hash de16bc5293e0e2c9f9b09b5c66d2ad0a _encloseme 1 Shell Partner Arrow Targets 10-Fold Gain in Gas Output by 2015 http://www.ethiopianreview.com/business/4597 Fri, 02 Oct 2009 09:36:10 +0000 http://zikkir.com/business/?p=6635 Arrow Energy Ltd., Royal Dutch Shell Plc’s Australian coal-seam gas partner, will start drilling in Indonesia and may expand in Europe and Southern Africa as it pursues a 10-fold jump in production by 2015.

Arrow’s strategy “is to get as much quality acreage as quickly as we can, before it becomes of interest to everyone else,” Chief Executive Officer Nick Davies said in an interview. Arrow targets annual production of more than 200 petajoules, with about 25 percent of that from outside Australia, he said. Output now is about 20 petajoules, said spokesman Andrew Barber.

Brisbane-based Arrow has surged 65 percent in six months in Sydney trading, partly on optimism about increased demand for gas as a cleaner-burning fuel than coal. Arrow plans to supply two Queensland liquefied natural gas ventures targeting export markets in North Asia and wants to replicate its Australian business in China, India, Vietnam and Indonesia, Davies said by telephone from Singapore yesterday.

“The gas business is unpredictable, but they’ve got proven ability to deliver what they promise,” Hai Pham, an analyst at Bakers Investment Group in Brisbane, said by phone today. “I think they can progress well in Asian countries.”

Gas output of 200 petajoules is equivalent to about 34 million barrels of oil, according to conversions provided by Geoscience Australia.

Arrow has started projects in China, India and Vietnam and is set to begin drilling in Indonesia within a month, Davies said. The company estimates Australia may hold up to 350 trillion cubic feet of coal-seam gas resources, and Indonesia an estimated 450 trillion cubic feet of gas in Indonesia, he said.

‘Never Say Never’

Arrow’s gas is set to be used at two LNG ventures in Gladstone, central Queensland — the Fisherman’s Landing project of Golar LNG Ltd. and Liquefied Natural Gas Ltd., and Shell’s Curtis Island venture. They are among five LNG plants proposed for Queensland targeting sales to Asia.

Arrow, Australia’s largest owner of coal-seam gas field acreage, would examine supplying gas to more of the Queensland LNG projects, Davies said. “Never say never. It depends on how much gas we’ve got and how quickly it comes forward.”

Coal-seam gas is mostly methane found on the surface of coal. The gas can be extracted when pressure on the seams is reduced, usually by removing water. LNG is gas chilled to liquid form for transportation by tanker to destinations not connected by pipeline.

Arrow traded 1.6 percent lower at A$4.31 at 2:28 p.m., valuing the company at about A$3.2 billion ($2.8 billion). Speculation of a takeover bid has helped fuel the stock’s advance this year. Shell, which owns a 30 percent stake in Arrow’s coal seam gas acreage in Queensland and a 10 percent interest in its international unit, made a A$3 billion offer for Arrow, with talks ending in stalemate, London’s Sunday Telegraph reported in August.

Arrow has held discussions with parties about a change of control, but hadn’t received an offer, the company said Aug. 13.

Davies declined to elaborate on a potential takeover bid.

“We’re very focused on delivering gas to the two LNG projects,” he said. “That’s 100 percent of what we’re focused on as a company. But we’re always checking for alternative value.” – ROYAL DUTCH SHELL PLC .COM

]]> 4597 2009-10-02 02:36:10 2009-10-02 09:36:10 open open shell-partner-arrow-targets-10-fold-gain-in-gas-output-by-2015 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6635#comments wfw:commentRSS http://zikkir.com/business/6635/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6635 syndication_item_hash 4f433e48e0a38681b36965906d5b4afe _encloseme 1 Pectina Devastatis – Shell Decay by Cor Houtenboer http://www.ethiopianreview.com/business/4596 Fri, 02 Oct 2009 09:37:27 +0000 http://zikkir.com/business/?p=6637 1

The laugh is on us this time…
The information in the article below is an elaborate hoax supplied from a Dutch Shell source…
(no such author or book actually exists)

Content of the email received:
Subject: Anyone out there taking bets on how long Shell will exist?

In 2004 the Dutch author Cor Houtenboer published exclusively in Dutch in a only very limited edition his book ”Pectina Devastatis” (”Shell decay”).

Unfortunately I only have the summary page of an online bookshop and a newspaper article on this book.

Houtenboer analyzed the decay of Shell up to the spring of 2004 and predicted the total dismantling of Shell somewhere in 2008.

In my view, the credit crunch retarded this process, but with the upcoming reorganization the downfall will resume critical momentum.

Summary page of ”Pectina Devastatis”

Related newspaper article “Poison Cup”

Book Review by The Economist

“A superbly written corporate analysis in which Houtenboer amalgamates his extensive knowledge of anthropology and human behaviour with a sound analysis of corporate processes. His insights suggest either that he is (or was) part of the Shell organization or alternately can rely on important sources on a very senior level within Shell, which is indeed in itself a worrying sign of the profound crisis. This book deserves a Pulitzer nomination.
(All part, as indicated, of an elaborate hoax, but as has been pointed out by an insider source who tipped us off that it was set up as an April fools stunt, all good jokes have a dark reality attached, which in this case, gave it even more impact. We are told that the hoax by a group of Shell managers worked like a dream because all of the information about Shell was factually correct. Perhaps one of the hoaxers will kindly provide an English translation of the spoof book summary and spoof newspaper article so that we can all fully appreciate the joke) – ROYAL DUTCH SHELL PLC .COM

]]> 4596 2009-10-02 02:37:27 2009-10-02 09:37:27 open open pectina-devastatis-%e2%80%93-shell-decay-by-cor-houtenboer publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6637#comments wfw:commentRSS http://zikkir.com/business/6637/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6637 syndication_item_hash 67772db5c4d8feb6837d4dad2dd9cfe7 _encloseme 1 Questions raised over Gardia policing of the controversial Shell Corrib Gas Project http://www.ethiopianreview.com/business/4595 Fri, 02 Oct 2009 09:39:07 +0000 http://zikkir.com/business/?p=6639 “Gardai said Mr Corduff had complained of head and chest pains necessitating an ambulance and two paramedics to travel out from Castlebar…no assault is being investigated by gardai” (Jim Cusack, Security Correspondent, Sunday Independent, 26/4/09)

News reports which focus on the community campaign to bring gas safely ashore in Erris, Co Mayo rely heavily on statements and speculation which, once generated by gardai, are accepted unquestioningly by reporters. Willie Corduff’s hospital records offer another version of events, one which relies on forensic detail rather than partisan speculation; “He had been kicked all over the body and had LOC (Loss Of Consciousness). He had headaches, nausea and vomiting.” (Discharge report for Willie Corduff, Castlebar Hospital, 24/4/09) Corduff took up residence underneath a Shell truck at Glengad compound only after gardai refused to reveal the legal basis on which work was restarting at the site. When Mary Corduff visited Belmullet garda station that afternoon, requesting the same, she was met with derision; ‘tell your husband to have a bit of sense’ said Supt McNamara.

For the past nine years the legal, social and environmental issues raised by the community have been dismissed in similar fashion. When Pat O’Donnell’s boat was sunk by persons unknown in June, garda sources insinuated that O’Donnell sank his own vessel; ‘Individual gardai and Shell allege, privately, that both cases (O’Donnell and Corduff) were concocted by “the movement” in a desperate attempt to garner support for the cause”. (Mark Tighe, Sunday Times, 5/07/09) Within 48 hours of the O’Donnell incident gardai announced unequivocally that “they have found no evidence to support claims by a prominent Shell to Sea protester that armed commandos sank his shellfish boat off the coast of Mayo last week.”

How did Gardai investigators arrive at such a speedy conclusion? The headline on that story, “Gardai: sinking story is fishy” is typical of the official attitude toward the concerns of the Erris people. On the night of the boat episode, Garda failed to send officers to secure nearby ports where O’Donnell’s attackers might have fled.

The role of the gardai as primary media source in the Corrib gas controversy has distracted attention from what human rights organizations are beginning to view as a systematic campaign of harassment against peaceful protestors.

Meanwhile public statements by gardai have been accompanied by petty harassment of less well known campaigners. Seanie McDonnell, a local school bus driver in his mid 60s, was arrested in June by plainclothes police in an unmarked car as he finished off his daily run. McDonnell was taken to Ballina, an hour away, and instructed to watch film footage of protests in which detectives accused him of property damage. “I’ve never done anything like that in my life” McDonnell told Village. The gardai have yet to follow up this arrest with any formal charge. McDonnell’s wife, who asked not to be named, out of fear, suffers from a long term illness. “I’m nervous to say anything, I have to be careful” said McDonnell. “It’s not for my own sake, it’s for my wife, it took a lot out of her.. I wouldn’t like any hassle around the house again.” On another occasion, a member of the Solidarity camp was surprised to hear that his parents, back home in Ballinskelligs, Co Kerry, had received a ‘friendly’ call from a local garda who expressed concern that their son’s safety might be at risk in County Mayo.

“Gardai sources say the protest has been infiltrated at times by very hard-line republican elements….the same sources said at least two leading members of the Real IRA in Derry have been seen at the protest.” (“Policing costs mount…” Conor Lally, Irish Times 20/09/08)
Garda spokespeople have also led the way in linking activists to subversion. The Sunday Times, (5/7/09) in its ‘Mayo Landing’ feature, relied on garda sources to portray the campaign as a destructive force; “Well known people are in and out of that solidarity camp stirring things up and inciting theses people, which they are naive enough to allow”, added Larkin. “If we didn’t have some of the outside agitators coming in there wouldn’t be a problem with the handful of locals that oppose this.”
Larkin offers no evidence to back up his ‘handful of locals’ theory and the Sunday Times clearly felt that no proof other than his word was required. Larkin then added that a better measure of local support for the project were ‘the many offers of accommodation’ received from people keen to house the 300 extra gardai drafted in to protect the project. This strange belief by Supt Larkin that cash for beds implies a measure of support for a corporate project goes unchallenged by the reporter. If Mark Tighe had consulted accommodation outlets in villages closer to Glengad, he would have discovered that a number of requests for garda beds were politely rejected by locals.
“We have to deploy huge numbers of gardai” explained Supt Larkin, “They are needed to deal with some of the protesters whose stated aim is to cause criminal damage and wreck property.”

Rossport resident Monica Muller has written an open letter to Garda Commissioner Fachtna Murphy, claiming that gardai have violated several articles of their own operating code (The Garda Siochana Act (2005) in adopting a partisan role in the Corrib gas project. Muller cites Superintendent Larkin’s “serious allegations against members of the public, accusation of intent to cause criminal damage..he has demeaned members of the public who oppose the Corrib Gas Project, as is their Constitutionally guaranteed right to do….He has made unfounded statements about matters outside the remit of the Garda Siochana and expressed his opinion of a commercial development by a private company.”
Monica Muller signed off her complaint to the Garda Commissioner; “While I am not a ‘protester’ I have most certainly taken up my legal rights to take part in the planning process for this commercial development in opposing it until such time as proper procedures, legislation and the rule of law are followed by Shell E & P Ireland”.
There is growing concern that the gardai have overstepped their duties in Mayo and taken on the role of auxiliary spokespeople/PR for a private developer. In the coming months Shell is expected to begin work on the onshore pipeline, bringing the issue right back to june 2005 when five men were jailed for refusing to allow the company access to their lands. The jailing of the Rossport Five triggered a nationwide campaign which left Shell isolated and unpopular. The company responded with a major PR campaign which shifted attention away from the substantive health and safety concerns and onto issues of alleged subversion and criminal behavior.
In the weeks and months ahead a number of legal challenges to Shell’s planned route will be aired while trained human rights monitors will keep a close eye on garda behaviour. Who will keep an eye on the media?
Ends. – ROYAL DUTCH SHELL PLC .COM

]]> 4595 2009-10-02 02:39:07 2009-10-02 09:39:07 open open questions-raised-over-gardia-policing-of-the-controversial-shell-corrib-gas-project publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6639#comments wfw:commentRSS http://zikkir.com/business/6639/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6639 syndication_item_hash 0c20f7b29c9f0e5169d08de83b4f063f _encloseme 1 Anyone out there taking bets on how long Shell will exist? http://www.ethiopianreview.com/business/4594 Fri, 02 Oct 2009 09:40:13 +0000 http://zikkir.com/business/?p=6641 Having seen all the EC-1 and -2 appointments and from many discussions I have with colleagues, it has become clear to me that Voser and Brinded et all want to get rid of critical thinking people in general and Petroleum Engineers in particular, i.e. just the people who have know-how on essential matters such as reserves and production forecasting.

The reserves reporting is now solidly in the hands of lawyers so easy to manipulate for Brinded (above). The overoptimistic production forecasting, a great hobby of our beloved and surpreme leader in Upstream, will now go unchallenged by people with genuine know-how.

Mr Percival wrote a while ago he had full confidence in the technical capability of Petroleum Engineering in Shell. I am curious if he is about to change his mind.

And as Shell goes deeper in dept and the gearing goes up, the rating can only go down. It is very obvious that Voser is trying to sell off Shell in bits and pieces to prop up his cashflow.

Anyone out there taking bets on how long Shell will exist? – ROYAL DUTCH SHELL PLC .COM

]]> 4594 2009-10-02 02:40:13 2009-10-02 09:40:13 open open anyone-out-there-taking-bets-on-how-long-shell-will-exist publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6641#comments wfw:commentRSS http://zikkir.com/business/6641/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6641 syndication_item_hash a88fd78ea228096b3104b794d4511a38 _encloseme 1 Selection of Royal Dutch Shell articles from our archives http://www.ethiopianreview.com/business/4593 Fri, 02 Oct 2009 09:41:25 +0000 http://zikkir.com/business/?p=6643 Royal Dutch Shell Fat Cat Malcolm Brinded: Big Brain but no scruples, 28 May 2009

Shell bans employee access to Internet porn, gambling and nudity, 25 Feb 2009

Toxic ethical ranking of Royal Dutch Shell, 17 Feb 2009

Royal Dutch Shell Pension Fund Meltdown, 21 Dec 2008

Royal Dutch Shell in U.S. Courts accused of more IP theft, 12 Aug 2008

Shell’s Shocking Track Record of Unethical Trading in USA, 12 Apr 2008

Shell Oil Under Investigation By U.S. Department of Justice For Potential Violations of U.S. Foreign Corrupt Practices Act, 17 Mar 2008

Shell boss Jeroen van der Veer cuts a deal with U.S. Attorneys, 13 Feb 2008

THE SADISTIC SACKING OF SHELL CHIEF EXECUTIVE WALTER VAN DE VIJVER, 16 Nov 2007

Shell Executives hoodwinked New York financial analysts, 01 Nov 2007

Royal Dutch Shell top secret documents revealed daily on ‘anti-Shell’ website, 30 Oct 2007

Royal Dutch Shell playing with fire in Iran, 27 Oct 2007

ROYAL DUTCH SHELL DEFIES USA ON IRAN, 15 Aug 2007

Offshore workers died as a result of a “Touch F*** All” safety regime at Shell, 25 Jul 2007 – ROYAL DUTCH SHELL PLC .COM

]]> 4593 2009-10-02 02:41:25 2009-10-02 09:41:25 open open selection-of-royal-dutch-shell-articles-from-our-archives publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6643#comments wfw:commentRSS http://zikkir.com/business/6643/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6643 syndication_item_hash 06ebdfe8875c7dd9f19115b37aab5ce5 _encloseme 1 Erin Brockovich goes after Shell Oil in Carson http://www.ethiopianreview.com/business/4592 Fri, 02 Oct 2009 09:43:16 +0000 http://zikkir.com/business/?p=6645 Environmental activist Erin Brockovich (right) has agreed to pursue litigation against Shell Oil Co. for contaminating a Carson housing tract.

Shell recently discovered elevated levels of methane and benzene underneath the Carousel neighborhood. The contamination has been traced to underground oil tanks the company operated on the site until the 1960s.

Girardi and Keese, the law firm that works with Brockovich, held a meeting with about 300 residents Saturday in Carson to recruit clients for a lawsuit against Shell, which could be filed as soon as November.

Residents were informed that, in some spots, benzene has been detected at 100,000 times the state standard. In some soil gas samples, methane has been found to exceed the explosive threshold.

“You’ve been exposed to a very high level,” said Robert Bowcock, an environmental consultant retained by the firm. “I’m incensed and angry that Shell let this happen.”

Brockovich, who lives in Southern California, did not attend, but has pledged to be at a future meeting. Brockovich was the heroine of the movie starring Julia Roberts, which told the story of chromium-6 contamination in Hinkley, Calif. In that case, Pacific Gas & Electric Co. was forced to pay a historic $333 million in damages.

Since the movie came out in 2000, Brockovich has been involved in numerous environmental contamination cases across the country, including several involving Shell.

At the meeting, Bowcock said that the contamination is “magnitudes greater” than levels found almost two years ago near the ExxonMobil refinery in Torrance. In that case, ExxonMobil agreed to buy 10 homes and offered price protections for the owners of 10 more.

The testing at the Carousel tract is still in its early stages, and Bowcock said it was premature to predict the outcome. But residents said they were growing increasingly alarmed.

“I’ve been worried about this, but I’m scared to death now,” said Barbara Post, president of the Carousel Homeowners’ Association. “Shell can’t replace my house, and they can’t replace that neighborhood.”

The Carousel development is north of Lomita Boulevard, between Marbella and Panama avenues. It includes about 275 homes.

The testing began more than two years ago, when the Department of Toxic Substances Control launched an investigation of the old Turco Products plant. Those tests turned up elevated levels of benzene, a carcinogen, which was traced to the Shell oil tanks.

Shell has been drilling samples in the streets all summer, and recently began asking homeowners for permission to do further drilling on private property. About 100 residents have signed access agreements with Shell, and the oil giant has taken soil samples from about a dozen homes.

“We take the levels that were detected very seriously,” said Alison Chassin, a Shell spokeswoman. “We believe the next step is to do these tests on residential properties as quickly as possible.”

Bowcock advised residents against signing the access agreements, saying they were likely designed to protect Shell. He said he would ask for a moratorium on the testing until the law firm could have input on the process.

“Shell is not interested in being your friend,” he told the homeowners. “They will do absolutely the minimum they are required to do. We know the games they can play and we’re going to hold their feet to the fire.”

Many residents signed retainer agreements with Girardi and Keese at the meeting on Saturday.

“I am very concerned,” said Cecilia Miramontes, who noted that her husband died of cancer in 2002. “I don’t know for sure if it’s caused by something like that. But my baby is living with me, and I’m really concerned about the value of my house.”

Others said they were going to take some time to think about it before signing up as a plaintiff.

“The lawyers are making it very scary,” Mary Weil said. “We want to wait, and ask what we’re getting involved in.”

The firm intends to pursue property damage claims and personal injury claims related to health effects from the contamination.

Under the attorney-client agreement, the law firm assumes all the litigation costs, which could run into millions of dollars. The firm would take one third of any settlement amount, or 40 percent of any judgment awarded at trial.

Residents were warned that the process could take years.

“It’s going to be an ugly, long road,” Bowcock said. “We will be fighting and fighting and fighting.” – ROYAL DUTCH SHELL PLC .COM

]]> 4592 2009-10-02 02:43:16 2009-10-02 09:43:16 open open erin-brockovich-goes-after-shell-oil-in-carson publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6645#comments wfw:commentRSS http://zikkir.com/business/6645/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6645 syndication_item_hash bde10510cc3c5889a387a1bc95e191ac _encloseme 1 Need a big loan? Ask Dad, not Mom http://www.ethiopianreview.com/business/4591 Fri, 02 Oct 2009 09:50:07 +0000 http://zikkir.com/business/?p=6647 Men are likelier to open their wallets to help their children in deep debt (as long as they don’t mention it’s for gambling), a survey finds.

Need to call home and ask for a big loan?

Pray that Dad answers.

That’s a key finding of a new CreditCards.com poll that, in these credit-crunched times, looked at the generosity and attitudes of many young folks’ lenders of last resort: their parents.

The survey found that fathers tend to be considerably softer touches than mothers when it comes to bailing out kids from big financial trouble.

Not that anyone — fathers, mothers, whomever — was particularly eager to be placed in that situation. It’s just not a good time for that sort of thing.

“These tough, frightening, challenging economic times have forced most people into becoming more cautious and discriminating concerning any spending,” said Barbara Udell, a family and individual therapist. “And most parents had hoped that they taught their children the value of money and how to handle it.”

Still, 21% of fathers said they would give their kids more than $20,000 to pay off credit card bills and other debts, even if the parents had no expectation of ever getting paid back — though many said they would accompany their checks with objections and reprimands. (”For crying out loud, Junior, are you out of your mind?”)

Only 12% of mothers said they would write those kinds of checks for their chicks.

The gap broadened when parents expected to be repaid eventually. In that case, 30% of fathers would give their debt-laden children $20,000 or more, but only 15% of mothers would do the same.

Why the disparity?

“Dads identify with the burden of debt if they are the main breadwinners,” said Dotty Sasmor, a psychologist and family therapist in the Miami area. “Also, dads may identify with their own youthful debt behavior, especially if their dads bailed them out.”
Let-down moms or softy dads?
The mothers’ reticence may not be easy to explain, but psychologists were not surprised.

“Some factors, like the ages of parents, the ages of children and the parents’ own financial situation may play a role,” Sasmor said. “Given that, I think most women have very strong values about money — money representing safety, security, freedom, love, etc.”

Udell put it more bluntly.

“Experience,” she said. “In these cases, they have been disappointed too many times by their children, who did not follow through on taking responsibility for their actions through the years.”

But there could be another explanation, Sasmor said. “Possibly dads are just pushovers.”

The scientific poll was conducted for CreditCards.com by GfK Roper. Pollsters interviewed 1,004 women and men from various parts of the country through random-digit dialing.

Most of the poll respondents had children, but some did not, and — as one might expect — that sometimes influenced their responses.

Interestingly, a sizable number of adults of both genders volunteered without prompting that they wouldn’t help at all if their children — real or theoretical — racked up debts. Nada, period.

Absolutely not. No matter how much or how little was owed.

Women who do not have children were most likely to feel that way. Among these women, 20% said, in essence, “no way, no how,” compared with 13% of men in the same category.
Medical debts? Sure. Gambling? Not so much
Most parents, of course, did not adopt such an absolutist view.

And other results of the poll strongly suggested that, in these difficult economic times, most American adults have a balanced and nuanced set of standards when it comes to their children and their children’s debts.

They are likely to help in some situations but not in others. So here is the bottom line for the younger generation:

If you run into trouble with student loans, medical bills, your rent or mortgage payment or even your auto loan, give Mom, or better, Dad a call. Your parents are probably willing to help if you’re willing to endure an earful.

But listen here, Buster or Darling: If you get over your head with gambling bills and maybe even your credit cards, you are on your own.

The CreditCards.com poll found that nearly 66% of mothers and 61% of fathers would never help their kids with gambling debts. An additional 23% of mothers and 30% of fathers would “somewhat object” to helping kids come out from under gambling liabilities.

When it comes to credit card bills, 29% of mothers and nearly 26% of fathers would never help, and more than 42% of mothers and 51% of fathers would object somewhat to doing so.
‘A question of values’
It’s an entirely different story when it comes to debts that seem more productive and socially acceptable, though.

Among respondents, 70% of fathers and nearly 59% of mothers said they would have little objection to helping their children pay off student loans, a majority of both genders feels the same way about mortgage payments or rent, and a plurality of men and women would have little objection to helping with auto loans.

Obviously, parents are aware of the legitimate financial pressures confronting their children during this economic downturn.

“This seems clearer to me as a question of values,” Sasmor said. “Gambling and credit card debt are seen as irresponsible, while student loans, owning a home and a car are much more socially valued.”

At the same time, another survey released last week concludes that many parents are worried about the money management skills of their children as they leave home.

Parents believe they are responsible for their children’s financial education, but they don’t feel confident that they are qualified to assist in that regard, according to a survey conducted for the Consumer Federation of America. “There is a capability gap,” said Stephen Brobeck, the executive director of the federation, which represents 280 consumer groups with a combined membership of 50 million people.

“Nearly all parents feel responsible for the financial education of their children, but little more than half are very confident their kids will leave home knowing how to manage money, credit and debt,” Brobeck said.

The problem is particularly acute when it comes to credit cards, some experts said.

“When we look at credit cards and young people, we see particular problems,” said Will deHoo, the president of FoolProof Financial Education Systems, which provides financial literacy tools for young people. “Most credit card operations project cards as a way toward freedom. We project them as a way to destruction, if you’re not careful.”
Less sympathy among the middle class
Digging deeper into the CreditCards.com poll, the findings also suggested a measure of class distinction when it came to the issue of parents, children and debt.

The rich, who can most afford generosity, and the poor, who have the most familiarity with the weight of extreme indebtedness, are most likely to pony up $20,000 or more for their cash-challenged kids.

People with middle-class incomes of $30,000 to $50,000 are the least likely to do so — perhaps because these parents, engaged in the daily effort to keep their own financial heads above water, are especially interested in teaching their kids to sink or swim on their own.

“They know what it takes to have been successful in their lives, through hard work, saving and keeping an ever-vigilant eye on spending,” Udell said. “When they have deviated from that and spent unwisely, they remember well the consequences.”

Other highlights of the CreditCards.com poll include:

* Though men are far more willing to help shoulder their kids’ debts of $20,000 or more, women are somewhat more forgiving than men when the debts come in at lower thresholds (below $1,000 for those who don’t expect to be repaid and $5,000 for those who do).
* It is the sheer weight of that $20,000-plus burden that seems to be the determining factor in fathers’ greater willingness to help. “Their experiences in this regard may be similar to their own when growing up and maturing financially,” Udell said of fathers. “So they have better understanding of the situation.”
* Adults who do not have children scored higher on virtually every measure of willingness to help, when seen from the perspective of a debtor child. One of many examples: One in five childless women and nearly one in four childless men said they would pay off a $20,000-or-higher debt of a theoretical child.

The ‘just say no’ crowd
In addition, the percentage of adults who said they would not help their children repay any debts under any circumstances remained relatively stable regardless of whether they expected to be repaid.

This suggests that many adult Americans stand on a rather firm principle when it comes to such things.

That principle?

“Actions have consequences,” Sasmor said, “so be responsible.”

“I would hope that parents have been teaching their children about money from the start — allowances, chores, responsibilities — and that, by college, they hope their children have similar values,” she said. “When their young adult child first gets into financial trouble, parents can be supportive, perhaps decide if and how much they want to help and use the crisis as a teachable moment,” Sasmor said.

“But, the second time, the child should have to bear the consequences of his or her actions.” – MSN Money and CreditCards.com

]]> 4591 2009-10-02 02:50:07 2009-10-02 09:50:07 open open need-a-big-loan-ask-dad-not-mom publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6647#comments wfw:commentRSS http://zikkir.com/business/6647/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6647 syndication_item_hash 4a6e3a94f3e8c3235d6ba0164fc382be _encloseme 1 Will banks help kill the recovery? http://www.ethiopianreview.com/business/4590 Fri, 02 Oct 2009 09:53:03 +0000 http://zikkir.com/business/?p=6649 Despite the Fed’s efforts to flood the economy with cash, the broadest measure of the money supply is declining because most of the new money is just sitting in vaults.

We’ve got a little problem in the economy. Tiny really. Nothing to worry about.

The government and the Federal Reserve are pumping money into the economy as fast as they can, yet the supply of money in the economy has started to fall — and that, in turn, could endanger the entire economic recovery.

The Fed is buying mortgage-backed securities ($1.25 trillion) and debt from Fannie Mae (FNM, news, msgs) and Freddie Mac (FRE, news, msgs) ($200 billion), expanding its lending to banks by keeping interest rates close to zero and buying up U.S. Treasurys.

All that, according to the textbooks, should be flooding the economy with money. And that’s exactly what you’re supposed to do to get the economy running again and to avoid turning the Great Recession into a rerun of the Great Depression. (And if you need a reminder about a recovery going into reverse, try my soothing story on the recession of 1937.)
That’s a lot of money running around
During the early stages of the financial crisis, those policy actions did exactly what they do in the textbooks. M2, the broadest measure of the money supply that the Fed still tracks, climbed from $7.36 trillion in October 2007 to $7.88 trillion a year later and to $8.39 trillion last June 22, according to the St. Louis Federal Reserve Bank.

That’s an additional $1 trillion to fund loans and credit card bills and plant expansions and state borrowing and . . . well, just about anything the economy needs.

And because each dollar of that extra trillion gets used over and over by the economy, the effect is even larger than that huge sum itself. What economists call the M2 multiplier has ranged between 8 and 12 for most of the period from 1959 to 2009. So that $1 trillion has the effect of an extra $8 trillion to $12 trillion in money racing around the economy.

Even in the huge $14 trillion-plus U.S. economy, that should be enough to jump-start economic activity and raise justifiable fears of runaway inflation.

In normal times, anyway. But the numbers coming out of the Federal Reserve say these aren’t normal times.

Multiplier takes a nose dive
Despite everything the Federal Reserve has done to pump money into the economy (and don’t forget the $787 billion stimulus package passed by Congress), money supply as measured by M2 actually declined in the four weeks ending Sept. 14.

And that’s because what’s called the velocity of money, the speed with which a dollar moves through the economy, has fallen.
That’s not unexpected. During the Great Depression, the velocity of money fell 22%. In tough times, people from consumers to bankers sit on more money longer.
But this isn’t good, folks. It’s a problem big enough to jeopardize the recovery that the economy seems to be building.

Look at what’s happened to M2 since it hit $8.39 trillion on June 22:

* By July 20, M2 had dropped to $8.34 trillion, down $50 billion.
* By Aug. 24, it was down to $8.28 trillion, down $110 billion.
* By Sept. 14, the latest data point from the St. Louis Fed, M2 recovered slightly to $8.30 trillion, still down $90 billion from June 22.

Economists who study this data use a four-week moving average to eliminate some of the week-to-week noise. At the worst point in the decline, the four weeks ending Aug. 24, M2 was dropping at an annualized rate of 12%. That’s the kind of contraction you get in a financial panic. Not the kind of growth you want to see as you’re trying to guide an economy to recovery.

And if you factor in the drop in the velocity of money and in the M2 multiplier, the situation is even worse. Remember, I told you that the normal multiplier from 1959 to 2009 was in the range of 8 to 12. But in the financial crisis, the M2 multiplier, according to the Federal Reserve, dropped close to 4. And it hasn’t bounced back.

So in the past few weeks, money supply has dropped at a rate fast enough to derail the recovery, and the velocity of money has remained stuck at the slow speed of a financial crisis.

The good news is that it’s pretty clear what the problem is. The bad news is that it’s not at all clear how to fix it.

The problem is that the banks still aren’t lending. They’re sitting on a huge proportion of all the money that the Fed is pumping into the economy, and because the money they’re sitting on isn’t moving, that’s putting the brakes on the velocity of money.

Look at what M2 actually measures. It’s the sum of all the currency in circulation, plus all the money in demand deposits (checking accounts and other funds that can be withdrawn without notice), plus savings accounts, plus time deposits (CDs and the like) under $100,000, plus money market funds, plus overnight repurchase agreements and Eurodollars at banks. (Those are all the big components, anyway.)

It doesn’t include the reserves that banks keep in their own vaults or at the Fed.
Not much good in the vaults
In other words, if the banks don’t lend it out, the money that the Federal Reserve has pumped into the banking system won’t reach the money supply that drives the economy. If a bank makes a loan to buy a house or to build a factory, that loan turns into paychecks, orders from and payments to suppliers and profits for builders. Some of that money gets spent again and again, producing the multiplier effect of any increase in the money supply.

All of the money banks lend, perhaps only fleetingly, winds up in checking accounts, savings accounts, business accounts and other instruments that are measured as part of M2.

If the money sits in a vault, it doesn’t count.

How do we know that’s what’s happening? By looking at another data series from the St. Louis Fed that tracks how much money commercial banks have lent. (If you want to check any of this data yourself, start here with the St. Louis Fed’s series on M2.)

As you’d expect, banks cut back lending in the financial crisis and then ever so gradually increased lending when it became clear the sky wasn’t falling. Total lending at commercial banks climbed from $8.7 trillion in the week of Oct. 17, 2007, to $9.3 trillion in the week of Dec. 24, 2008. That’s a very healthy $600 billion increase in just about 14 months.
Lending beset by inertia
But then things stopped getting better. They didn’t get worse, except for the weeks around the March 9 stock market low, when bank credit fell below $9.3 trillion. But bank credit stayed stuck at that level.

Until July. That’s when it started to slide back. In July, bank credit dropped below the $9.3 trillion level. In the week ending Aug. 19, it dropped below $9.2 trillion. And it stayed there for the first half of September. In the week ending Sept. 16, total bank credit came to $9.12 trillion.

That’s not a huge decline from $9.3 trillion, but it is definitely a move in the wrong direction at a time when the economy needs to see bank lending growing, not shrinking or standing still.

Why are banks cutting back on their lending? (I don’t mean to pick on banks here. I think other types of financial institutions are doing much the same thing. It’s just that the data on banks are so much better than in other parts of the financial industry.)

Part of it is that they don’t trust the recovery. With unemployment still rising and consumers still not spending as before, being cautious about extending new credit doesn’t seem particularly outrageous.

Cleaning up their books
But that’s not the major part of the problem. Banks aren’t lending because they still haven’t cleaned up their balance sheets. Many of them are still in the process of writing down credit card debt or mortgages or commercial loans — not to mention the complex derivatives they’ve still got in their portfolios. They know that regulators have suddenly turned strict about capital ratios. There are only two ways to raise your capital-to-asset ratio (and remember that, for a bank, a loan is an asset): You can either go out into the still very hostile public financial markets and pay the pound of flesh that investors want before they buy into an equity offering. Or you can improve the ratio by working on the denominator. Cut the amount you’ve got out in loans, and your capital ratio goes up without the need to raise more capital.

Banks know, too, that tougher capital requirements are coming not too far down the road. At the recent Group of 20 economic meeting in Pittsburgh, it was agreed that the various national regulators would go back home and increase the amount of capital that the banks must have.

For 2010 and 2011, banks face a steady ratcheting up of capital-to-asset ratios. They don’t want to make the challenge of meeting those new rules any tougher by expanding their loan books now.

None of this really comes as a surprise to the Federal Reserve and the world’s other central banks.

Video: Banks working through their problems

They knew that they potentially faced exactly this problem. But they hoped that by unleashing a campaign of financial shock and awe that involved heavy fire from all monetary and fiscal weapons, they’d be able to convince banks that it was only sensible to lend more rather than to sit on their money.

It’s not clear that this policy has failed. The worrying trends really include just four weeks or so of data. But the short-term trend is worth worrying about because, having fired all their guns, the world’s central banks really don’t have much left in their arsenals to roll out in a new assault.

Watch the data. We’re not out of the woods yet. – MSN Money and MoneyShow.com

]]> 4590 2009-10-02 02:53:03 2009-10-02 09:53:03 open open will-banks-help-kill-the-recovery publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6649#comments wfw:commentRSS http://zikkir.com/business/6649/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6649 syndication_item_hash db8c50f5f13e9c38c289162125fc47ef _encloseme 1 Global money thaw becomes a torrent http://www.ethiopianreview.com/business/4589 Fri, 02 Oct 2009 09:57:26 +0000 http://zikkir.com/business/?p=6652 The evidence is there, in big deals and IPOs, in debt sales and stimulus spending: Money has started flowing again. And that could drive a fourth-quarter stock surge.

Money is on the march — and money in motion makes everything better.

I know it’s hard to imagine this after last year’s calamities. But just keep an open mind. Just read the international news wires for a few minutes, then close your eyes and use your imagination. Can you not see dollars, yen and euros flooding the global financial arteries in the greatest acceleration of deal making, corporate expansion and infrastructure construction in a decade?

Money is on the march — and money in motion makes everything better.

From Tokyo to Sydney, from New York to Shanghai, consumers may not be swarming retailers quite yet, but international trade data show that manufacturers are begging for product from suppliers and that suppliers are begging for raw materials from their commodity sales agents. As demand for inventory escalates amid gently rising demand from consumers, the global economy is ever so slowly healing from last year’s devastating wipeout.

And most of all, credit — the sweet-smelling lubricant of modern markets that makes transactions friction-free — is seeping in. It may not be reaching the consumer in great quantities yet, but it will, throwing all the naysayers, muddle-throughers, skeptics and complainers for a loop.

First though, as I’ve reported previously, credit is going to companies as the great global debt machine whirs back to life amid a renewed appetite for risk taking. And once corporate executives smack their foreheads and remember they need employees to run the factories they’ve bought, employment will begin to arch higher again, as it always has. In fact, it already is.

Pay attention: The U.S. economy alone lost 538,000 jobs in May, 467,000 jobs in June, 247,000 in July and 216,000 in August. Do you see a sequence developing?

My fifth-grade math — and data extrapolated from temporary-employment agency surveys, the Kansas City Fed’s manufacturing survey, the Richmond Federal Reserve’s services employment survey and hiring announcements at companies as diverse as Goldman Sachs (GS, news, msgs) and General Motors (MTLQQ, news, msgs) — says that if the trend continues, job losses in September may have been as low as 150,000. By November we could be down to minus-20,000, and in December we could see a gain.

That would be a shocker, even for bulls, and could be the improvement in the economy that the sharp rise in stock values has been forecasting. The contrarian in me says that since the idea of employment posting gains this winter is way out of consensus, it is a real possibility.

Companies are perking up; they really are. Just peel off the news for a single day in the past week — say, Monday. That morning, we learned that Xerox (XRX, news, msgs) will pay $6.4 billion for outsourcer Affiliated Computer Services (ACS, news, msgs), Abbott Laboratories (ABT, news, msgs) will buy the drug business of Belgian conglomerate Solvay for $6.6 billion and Chinese state-owned chemical firm Sinochem has offered $2.5 billion for an Australian company.

Nary a deal was done at this time last year, and now they’re being announced like train arrivals at Penn Station. Freakin’ Xerox, are you kidding me? If that zombie can come back from the dead to persuade banks to lend it the money to do a deal, anyone can. I’m serious. Xerox?

Just imagine what good companies can accomplish. Let’s see: Last week, Dell (DELL, news, msgs) offered $3.9 billion for Perot Systems (PER, news, msgs). Shanda Games’ (GAME, news, msgs) initial public offering raised $1 billion. Battery maker A123 Systems (AONE, news, msgs) saw its shares soar 50% after its IPO. Unilever bought parts of Sara Lee (SLE, news, msgs) for $1.9 billion. Spain’s Banco Santander (STD, news, msgs) is raising $7.2 billion.Wells Fargo (WFC, news, msgs) sold a huge stack of short-term bonds for just 50 basis points (half a percentage point) over Treasurys.

Even beleaguered, bewildered California is completing an $8.8 billion debt sale, and here’s the kicker on the State of Arnold: Closed-end funds that buy only its municipal bonds are now trading at the highest level ever. Not just where they were before the credit crisis hit. Ever. As in all-time highs. Example: Nuveen California Investment Quality Municipal Fund (NQC, news, msgs), which people normally buy just for its dividend yield, traded between $9 and $13 a share from 1994 to 2007. At this time last year, it fell to $6. And on Thursday, I’m not kidding, it closed at $13.42, a record high.

This is what a bull market looks like. Bond deals, IPO deals, buyouts, the whole Schmear. Money is on the march — and money in motion makes everything better.
Dragging the bears back in
Not that everyone agrees. In a Wall Street Journal article Monday, unrepentant bears in the hedge fund community said they think only “low-quality” stocks have been rising and that the advance isn’t supported by fundamentals. These were not little guys. They were the overseers of multibillion-dollar funds — the ones who have been called the “smart money.”

But are they really so smart, or do they just sound that way because journalists prefer a negative story? It occurred to me that the term “quality” is just the latest buzz word that bears are trying to use as a shield to protect themselves from being run over by history. I am not going to cast aspersions. I wish them the best of luck. Maybe in the fullness of time they will be proved right. But all I can say is that quality is in the eye of the beholder.

For years, Amazon.com (AMZN, news, msgs) was considered a junk stock with no future. Now it’s a retail bellwether. All the way through the 1990s, I heard professional fund managers say they couldn’t get comfortable with the business model of computer maker Dell. The stock went up about 30,000% in 10 years. I used to hear that Apple (AAPL, news, msgs) would never manufacture a product properly and thus wasn’t suitable for “quality” portfolios. Steve Jobs proved them wrong.

The point is that “quality” is a point of view; it’s not an investment thesis. If the market shakes off its poor fourth-quarter start to keep advancing and there’s more good earnings and economic news, as I suspect there will be, these fund managers will be forced in. And that event — forgetting anything about fundamentals or the economy — could launch a fourth-quarter performance chase of a kind we haven’t seen since 1999 as investors try to keep up with a runaway market. It could be built on nothing more than stardust, rainbows and unicorn tails, and still be amazing. Imagine a replay of last winter, except in reverse.

Where’s the money coming from? Remember the U.S. stimulus act that made $787 billion available to boost the economy? An estimated $400 billion to $600 billion of that hasn’t been spent yet. So far, only $48 billion has been used for infrastructure, according to reports. That will increase to about $110 billion next year. Then the Federal Reserve has an additional $1 trillion to spend still on defaulting residential mortgages, commercial mortgage-backed securities and Treasurys. Then there’s the somewhat forgotten Public-Private Investment Program, which hasn’t quite gotten off the ground yet but eventually will allow private-equity firms to buy toxic assets from banks and let taxpayers worry about the risk of future defaults, with the profits going to the likes of private firms BlackRock (BLK, news, msgs), Blackstone (BX, news, msgs) and Goldman.

Yes, it’s a recovery that you paid for in tax receipts. Since you bought it, you might as well enjoy it.

A couple of supposedly low-quality, low-priced stocks to consider right now would be Sourcefire (FIRE, news, msgs) and BofI (BOFI, news, msgs).

The first does cybersecurity; the second is the oldest Internet bank. They are both growing rapidly without much help from the credit markets, as they simply have low-cost business plans that have printed profits even amid the downturn.

Money is on the march — and money in motion makes everything better. That’s the theory. In the next three months, we’ll see if it’s true. – MSN Money

]]> 4589 2009-10-02 02:57:26 2009-10-02 09:57:26 open open global-money-thaw-becomes-a-torrent publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6652#comments wfw:commentRSS http://zikkir.com/business/6652/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6652 syndication_item_hash 84e86d055fafa542768647d6ebb66922 _encloseme 1 Save big with a winter wedding http://www.ethiopianreview.com/business/4588 Fri, 02 Oct 2009 10:00:45 +0000 http://zikkir.com/business/?p=6654 Maybe sunshine and warmth are overrated: When temperatures drop, so do prices. And when business is slow for vendors and venues, you may be able to cut a deal.

The promise of warm weather, blossoming flowers and robust attendance makes summer the peak season for weddings. But there are different perks for couples who marry in the winter — namely huge savings.

Peak wedding season falls between May and October in most of the U.S., says Richard Markel, the president of the Association for Wedding Professionals International. During that time, most wedding vendors — including caterers, photographers and limousine companies — charge the most because their services are in demand. But in the winter, business comes to a standstill, especially in the northern regions hit with particularly harsh weather, and engaged couples have more room to negotiate for lower prices.

During the winter, the number of weddings throughout the country declines by 40% to 50% below that of peak season, Markel says. And of the roughly 2.2 million weddings that take place in the U.S. each year, only 5% occur in January, he says. That winter dip in demand means that couples marrying during the cooler months compete with fewer weddings for vendors.

Couples who are considering a January, February or March wedding still have time to book vendors, Markel says. “Couples have a major opportunity because the number of weddings that occurred in 2009 has been down by about 5%, and bookings for early 2010 are down as well,” he says.

(December weddings aren’t as cheap because banquet facilities give priority to recurring customers: conventions and companies planning holiday parties.)

Here are the four types of wedding vendors with whom you’ll see some of the biggest winter savings.
Banquet facilities
The largest wedding-related expense is the banquet reception, which can cost more than $10,000, depending on the number of guests, location and menu, Markel says.

Typically, banquet facilities charge a fixed price per person. But between January and March, the total cost often drops between 20% and 50%, Markel says. (The savings will be lower in states that have warm weather throughout the year, like parts of Florida and California.)

Couples who get married in the Meeting House Grand Ballroom, a banquet facility in Plymouth, Mich., will see big price differences. For weddings between January and March, couples will pay Friday prices for a Saturday wedding, says Randy Lorenz, the owner and general manager. For a party of 200 adults, that’s a discount of $2,000; the banquet facility also waives its $300 ceremony fee.

However, not all wedding venues are cheaper during the winter than during the spring, summer or fall. Weddings at ski resorts are priciest in the winter, the venues’ peak season, says Elise Enloe, the director of education for the Association of Bridal Consultants, a trade group.

Also, facilities that are popular with corporate holiday parties or conventions tend to be busiest during the winter, says LeLani Mandac, a senior catering manager at the Hilton Anaheim in California.

To save with a winter wedding at the Hilton Anaheim, couples will have to reserve the space no more than six months in advance, she says. Couples who choose an available weekend between conventions could receive an upgraded package at no extra cost, like a $70-per-person plated dinner (the facility’s priciest package) at a cost of $65 per person, or an additional hour for their wedding celebration, which usually costs $250, for free.

In New York, winter is typically slow for caterers and other wedding vendors, says Andrea Correale, the president of Elegant Affairs, an off-premise catering and event-design company. As a result, couples marrying there have more room to negotiate meal prices during the cooler months. A caterer’s price difference between a winter and summer wedding in New York is, on average, $50 per person, Correale says.

Another option, of course, is to skip dinner. Lunch or brunch can save you 50%.

Flowers
Couples set on a particular color or type of flower should keep an open mind or prepare to drop a lot of cash.

The average cost of wedding flowers ranges from $2,000 to $3,000 in the U.S., says Baxter Phillip, the executive vice president at Phillip’s Flowers & Gifts in Chicago. To save with a winter wedding, choose flowers that are in season, like irises, orchids, lilies and most roses, he says. Hydrangeas and peonies are the most expensive in January, and red and white roses are the priciest in the two weeks leading up to Valentine’s Day and during the holiday season.

Also, find out where the flowers are coming from. Their starting point and shipping costs factor into the price. Seventy-five percent of wedding flowers (primarily roses) come from South America, whose summer season is our winter, Phillip says. Those flowers often are more affordable for winter weddings in the U.S. than, say, flowers imported from Holland, which shares our winter. Distance is also a factor.

Flowers that ship from South America to Florida will be cheaper than those shipped to California, says Angie Zimmerman, the owner of Heavenly Flowers & Events in El Dorado Hills, Calif.

Sticking to locally grown flowers that are in season is the least-expensive option.

For example, tulips are less expensive in California during the winter than they are in most of the rest of the U.S. because the state has many local tulip growers, Zimmerman says.
Photography and video
Fewer weddings mean fewer requests for photographers and videographers.

For weddings between December and March, Bill Louis, the owner of Stella View Studios in Union, N.J., says he discounts his custom photography packages, which start at $1,099, by 10% to 20%.

Jeff Sharpe, a co-owner of Sharpe Photographers in Roseville, Calif., where the starting price for photos is $2,200, says the company offers 10% to 25% discounts for weddings between January and March. During the same months, Eli Allen, the owner of Majestic Images in Philadelphia, who charges a starting price of $7,000 for photography and video combined, offers a 20% discount.
Transportation
Limos are at their most expensive during prom season and peak wedding season — periods that winter weddings avoid. So expect to pay 10% to 20% less during the winter than you would in May or June, Markel says.

Santos Limousines in Avenel, N.J., lowers the price on its fleet of limos and luxury cars for most weekend weddings between the first Saturday after Thanksgiving and the end of March. For three and a half hours of use, a 2009 Rolls-Royce Phantom rented during the winter will cost a couple $1,000, down from its peak price of $1,200; a Chrysler 300 stretch limo will go for $400, down from a high of $475; and a Cadillac Escalade ESV Series will cost $825, down from as much as $925.

From Sundays through Thursdays during the winter, Reston Limousine, based in Washington, D.C., offers a fourth hour free on any vehicle rental at least three hours. – MSN Money and SmartMoney

]]> 4588 2009-10-02 03:00:45 2009-10-02 10:00:45 open open save-big-with-a-winter-wedding publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6654#comments wfw:commentRSS http://zikkir.com/business/6654/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6654 syndication_item_hash 64ee75ae906c209fada11790604a5e65 _encloseme 1 US stocks slide most in three months on recovery concern http://www.ethiopianreview.com/business/4587 Fri, 02 Oct 2009 10:01:44 +0000 http://zikkir.com/business/?p=6656 U.S. stocks was hit with the steepest slide in three months on Thursday, the first day of the fourth quarter, after disappointing unemployment and manufacturing reports left investors worried about economic recovery.

Dow Jones Industrial Average shed 203 points, the biggest point and percent drop since July 2, and all 30 stocks closed lower on Thursday. Dow was down for three straight days and six of last seven.

The Standard & Poor’s 500 Index slid 2.58 percent to 1,029.85 a day after capping its biggest back-to-back quarterly rally since 1975. About 18 stocks fell for each that rose on the New York Stock Exchange, the broadest sell-off since April.

The stocks were pushed lower after the Institute for Supply Management said its index of manufacturing activity in September slipped to 52.6 from 52.9 in August, missing analysts’ expectations of 54. Figures above 50 indicate the sector is expanding.

More pressure came with the weekly jobless application report. The U.S. Labor Department said new claims for unemployment benefits rose last week to 551,000. Economists polled by Thomson Reuters had predicted a total of 535,000 claims.

The increase broke a string of three straight weekly drops and exacerbated the concerns about the monthly employment report, which is due on Friday.

Currently, U.S. unemployment rate stands at 9.7 percent, highest level in 26 years. But economists predicted the rate will rise to 9.8 percent in September. Most analysts expect the rate to top 10 percent by early next year. Economists are hoping the pace of job cuts will slow, however. Employers are expected to have cut 180,000 jobs in September compared with 216,000 in August.

The disappointing economic reports have cast shadow on investors’ prospect on the strength of the recovery and the sustainability of the equity market rally. Even the news about U.S. consumer spending’s surge failed to lift the market.

The U.S. Commerce Department reported on Thursday that consumer spending rose 1.3 percent in August, the largest rally in nearly eight years. But analysts remained conservative about the rebound as rising unemployment and tight credit conditions would curb the upward trend.

Falling auto sales report on Thursday added to investors’ concern on a sustainable recovery. Major automakers posted big drops in September sales following the government’s Cash for Clunkers incentive program.

General Motors Co. and Chrysler Group LLC reported the biggest slowdowns during the month. GM’s sales plunged 45 percent to 155, 679 vehicles in September, compared with a year earlier. Chrysler sold only 62,197 vehicles last month, down 42 percent.

Ford Motor Co. had the smallest decline among major manufacturers, falling 5.1 percent to 114,241. Japan’s Toyota Motor Corp. said sales fell 13 percent while Nissan Motor Co. said its sales fell 7 percent. Honda’s sales fell 23.3 percent to 77, 229.

Meanwhile, technology sector met a heavy sell-off on Thursday after Microsoft fell 3.3 percent to 24.88 U.S. dollars. Goldman Sachs lowered the world’s largest software company from ” conviction buy” to “buy,” citing “some degree of risk to” first- quarter earnings.

The Dow Jones lost 203.00, or 2.09 percent, to 9,509.28. Broader indexes also fell sharply. The Standard & Poor’s 500 index dropped 27.23, 2.58 percent, to 1,029.85 and the Nasdaq declined 64.94, or 3.06 percent, to 2,057.48. – China.org.cn

]]> 4587 2009-10-02 03:01:44 2009-10-02 10:01:44 open open us-stocks-slide-most-in-three-months-on-recovery-concern publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6656#comments wfw:commentRSS http://zikkir.com/business/6656/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6656 syndication_item_hash 06023aff2f487f8ca906653cddffdfcb _encloseme 1 Labor Unrest http://www.ethiopianreview.com/business/4586 Fri, 02 Oct 2009 10:04:38 +0000 http://zikkir.com/business/?p=6658 The U.S. labor market stinks, although job prospects in Texas are better than most places. The forecast? Unemployment will remain high even as the economy picks up.

1
The unemployment rate may hover at 9 percent through the end of 2010 even if the economy picks up, Fed Chairman Ben Bernanke says.

The U.S. economy has unraveled at a breathtaking pace since the middle of last year.

Nearly 6 million private-sector jobs have vanished since June 2008, equaling a loss of 485,000 jobs per month. The national unemployment rate has skyrocketed nearly four points over the same span—from 5.6 percent at last year’s midpoint to 9.5 percent this year.

And there’s no immediate relief in store. Federal Reserve Chairman Ben Bernanke said at a House Financial Services Committee hearing on Thursday that the jobless rate could be above 9 percent through the end of 2010, even if the economy resumes growth at a modest pace. And the Labor Department reported Thursday that first-time jobless claims for the week ended September 26 rose more than economists expected, a sign that companies are still cutting jobs. Economists will learn a bit more about the jobs market on Friday, when the government reports on the unemployment rate and jobless numbers for the third quarter of the year.

No section of the country has been immune to the recession’s ravages. But a few areas are still doing reasonably well, notably Texas, which includes four of America’s five hottest labor markets, according to a new bizjournals study.

Austin leads bizjournals’ latest employment ratings of the nation’s 100 biggest metropolitan areas. San Antonio ranks second, Houston fourth, and Dallas-Fort Worth fifth. (The non-Texas exception in the top five is No. 3, Baton Rouge, Louisiana.)

Each of the four Texas markets has fewer private-sector jobs than a year ago. All 100 metros in the study group, in fact, have suffered employment declines since mid-2008. But the Texas numbers are surprisingly good when stacked against the rest of the country:

– Five percent of the nation’s private-sector jobs have melted away since June 2008, but the collective decline for the Texas Four has been only half as bad, 2.6 percent. San Antonio has fared the best, losing just 0.9 percent of its jobs in the past year.

– The long-range numbers remain impressive. The Texas markets, despite their recent losses, still have 589,500 more jobs than they did a half-decade ago. That works out to a five-year growth rate of 10.8 percent, compared to the national decline of 0.7 percent over the same period.

– Dallas-Fort Worth has the worst unemployment rate among the Texas Four, 8.2 percent as of mid-2009. That’s still nearly a point and a half better than the U.S. jobless rate of 9.5 percent.

Bizjournals created a nine-part formula to analyze employment trends in the nation’s 100 largest labor markets. The formula used midyear U.S. Bureau of Labor Statistics data for the 2004 to 2009 period, including unemployment rates and trends and raw and percentage changes in private-sector employment.

The 100 metros, taken as a group, had 76.31 million private-sector jobs as of June 2009. That’s 69 percent of the nation’s 110.13 million positions.

Rounding out bizjournals’ list of America’s 10 strongest labor market—in order from sixth through 10th place—are Des Moines, Oklahoma City, Tulsa, Omaha, and Little Rock.

It’s no surprise that the 10 leaders on this year’s list all come from the nation’s midsection.

The recent bursting of the real estate bubble has dramatically hurt states at the opposite ends of the country, especially Florida, Arizona, Nevada, and California. But the extreme aspects of the recession have been tempered in regions with more affordable housing, such as Texas and its Southwestern neighbors, the Midwest, and the mid-South.

The result has been a dramatic upheaval in bizjournals’ labor-market rankings. Riverside-San Bernardino, California, which was No. 4 in the 2007 midyear standings, is now 96th, an astonishing drop of 92 places in two years. Nearly as bad are the 83 place declines by Phoenix (from first in 2007 to 84th now) and Boise, Idaho (from third to 86th).

Unassuming, historically low-growth markets have headed in the other direction. Rochester, New York, which was 89th two years ago, now ranks 21st. Rochester has lost 1.7 percent of its jobs during the past year, leading to an unemployment rate of 8.4 percent. (Both figures seem positively sunny when compared to Riverside-San Bernardino’s 7.5 percent loss and 13.7 percent unemployment.)

Other sharp upswings are 67 places by New Haven, Connecticut (from 92nd in 2007 to 25th now), 64 places by Columbus (from 90th to 26th) and 57 places by Syracuse, New York (from 85th to 28th).

The bottom of the list is anchored by Detroit, just as it was in 2008 and 2007. Detroit’s economic reliance on domestic automakers has been especially unfortunate in recent months, given the catastrophic financial losses suffered by Chrysler, Ford, and General Motors.

A total of 171,200 private-sector jobs have disappeared from the Detroit market since mid-2008, a one-year loss of 10.0 percent. Its five-year drop, dating back to 2004, is even worse, 15.6 percent. Both rates of decline are bleaker than those in any other market, as is Detroit’s unemployment rate of 17.1 percent.

The rest of the bottom 10 is a blend of markets from California, the South, and the industrial Midwest. Toledo, in 99th place, is just a step ahead of Detroit. Then in ascending order: Reno, Nevada; Bradenton-Sarasota, Florida; Riverside-San Bernardino; Youngstown, Ohio; Sacramento; Los Angeles; Lansing, Michigan; and Greensboro, North Carolina. – Portfolio

]]> 4586 2009-10-02 03:04:38 2009-10-02 10:04:38 open open labor-unrest publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6658#comments wfw:commentRSS http://zikkir.com/business/6658/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6658 syndication_item_hash 4b4f6c28fab03c1e83bb5f2b7bd78fa1 _encloseme 1 Rapid Succession http://www.ethiopianreview.com/business/4585 Fri, 02 Oct 2009 10:06:14 +0000 http://zikkir.com/business/?p=6660 Bank of America says it will name a successor to CEO Ken Lewis by year-end. The Charlotte Business Journal examines the prospects of leading candidates to run the largest U.S. bank.

1
Bank of America prefers to develop top leaders from within its own ranks.

Kenneth Lewis’ planned retirement from Bank of America Corp. at the end of the year, announced late Wednesday afternoon by the bank, set off broad speculation about potential successors.

Brian Moynihan, the recently appointed head of consumer banking, is believed to be a leading candidate. Thomas K. Montag, a former Goldman Sachs and Merrill Lynch executive and BofA’s chief of investment banking, is another likely contender. CFO Joe Price, Barbara Desoer, president of Bank of America Home Loans, and Sallie Krawcheck, head of wealth management, are also potential candidates.

Another intriguing name suggested as a candidate is former BofA CFO Al de Molina, the CEO at GMAC Financial Corp.

Moynihan, a lawyer by trade, joined BofA when the bank acquired FleetBoston Corp. in 2004. Lewis appointed him to lead the integration of Merrill Lynch and then moved him to lead consumer banking this summer. Analysts say he has the experience in several areas of the bank to be a top candidate.

Montag may also be a leading candidate. He built his career at Goldman Sachs before joining Merrill in 2008. After the merger, he was appointed to lead investment banking for BofA. UNC Charlotte banking professor Tony Plath says the bank’s increased focus on investment banking and a global presence make Montag a possibility because of his expertise in those areas.

Price is often mentioned as a successor to Lewis because of his ties to Charlotte and lengthy tenure at the bank. But he is not considered the best operations manager of the other candidates.

Rochdale Securities analyst Dick Bove says Desoer is a dark horse candidate because of her successful work improving the bank’s customer service scores and the integration of Countrywide Financial Corp. She joined the bank in its 1998 acquisition of San Francisco-based BankAmerica Corp.

Krawcheck, a Charleston, South Carolina, native, joined the bank this summer after a tenure at Citigroup where she served as both CFO and head of the SmithBarney brokerage. She’s well-respected on Wall Street but doesn’t have enough experience inside BofA—a company that likes to promote from within—to be a leading candidate, Plath says.

De Molina’s name hasn’t been discussed as often as other candidates. But he has a home in Charlotte and experience with the company.

“I think the more important thing for Charlotte is that the board considers the best-qualified candidate, and in my mind that’s Al de Molina, hands down,” says a former BofA executive who asked to remain anonymous. “He’s got real hands on turnaround experience now with GMAC and he’s doing an unbelievable job there. It would be a shame for Charlotte if that one got away.”

De Molina was reportedly a candidate to succeed Ken Thompson at Wachovia before that bank’s board chose Bob Steel. De Molina was named CEO of GMAC Financial Corp. last year. – Portfolio

]]> 4585 2009-10-02 03:06:14 2009-10-02 10:06:14 open open rapid-succession publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6660#comments wfw:commentRSS http://zikkir.com/business/6660/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6660 syndication_item_hash 2d1073e8ad1f1e07ea04f57ddacafdca _encloseme 1 Marking a watershed http://www.ethiopianreview.com/business/4584 Fri, 02 Oct 2009 10:08:18 +0000 http://zikkir.com/business/?p=6662 Water is a tasteless, shapeless, colourless odourless liquid that exists on earth and gives us life. This is what we know of water. What we don’t know about water is how to manage it. All we are able to do is capture it in various “vessels” ranging from a glass or a cup to rivers, tanks, lakes, reservoirs etc. This book is a bold and comprehensive attempt to capture all that we know about how to manage and regulate the various “vessels” that hold water for different uses. These management practices are formalised through legislation or tradition at different levels of governance and by different social actors. These are captured by the various contributors succinctly. Unlike a typical law book that would either argue from a normative understanding of a basic principal, eg the human rights approach towards legislation, or generalise from case laws towards legal framework, this book combines both the approaches through contributed articles.

It is a tricky topic to deal with and hence there was a gap. This book focuses on the law that pervades in all the 20 different aspects on water, cutting across disciplines and end usages, as listed by the editor for which he deserves special appreciation.

The book was three years in the making. The proposal, initiated in 2005, started with a framework for a cluster of themes and questions and was circulated to potential contributors. Almost all agreed to contribute and the number of aspects to be covered increased from an initial 12 to 20. There was a workshop in 2007 to ensure coordination and coherence in the papers, while retaining the individual disciplinary perspectives. Writing the manuscripts took up the period upto December 2008. The editor contributed the introduction and wrap-up chapter that facilitate understanding and context.

Given the complexity of water resources, arising from the diversity of sources and history, such a long gestation was inevitable. Historically, the English law evolved through precedence, based on specific cases that led to judgments applicable to local disputes related to water allocation for land. The colonial law related to irrigation water disputes in India at the national level and, finally, the river water disputes that cut across different states evolved on international laws like the American one.

When end use of water gets linked up with agricultural land or industrial usage or commerce or domestic use by urban settlements, the basic question is who owns, possesses and consumes water? The question becomes especially relevant when it gives rise to the associated alienation from water and its rights, to people and communities that do not own land or fall in the above categories in towns and cities. Hence water ownership is not easy to define. It changes with the context, so the answer to the question varies as the context shifts. It also shifts with the sources it comes from. While the well water is owned by the owner of the well, the tank is a communal property for farming owned by the village, and the river water is owned by the state it flows from. Rivers, like sea and air, are nobody’s property, while in the context of ground water, the law that applies to ownership of the land applies to the water below it. For access and approach to the water flowing near land, like a river or lakes, access is determined by the land ownership patterns. River water, though not owned by anybody in principle, is claimed by states, and held as public trust. In principle an equal division of available water is agreed upon for river water disputes. However, it is very difficult to implement this equity, especially in the case of severe shortages. Kaveri and Krishna river disputes are examples. While the state’s sovereign rights over bound water and not flowing water are recognised, they are limited by consideration of social welfare: the greatest good for greatest number of people.

The book has 20 contributions by 19 contributors. No author hesitates to take a stand, strongly believes in what the future course of action should be and suggests it boldly. The book covers three theses: ecology and forest sustainability; equity and social justice; and harmony between man and man, and man and nature. The amplification of these themes and what governs these aspects get covered in the book. The editor makes a strong case for a national act, to be included in the Directive Principles as a duty to be specified to the citizens.

This is the most comprehensive book so far in providing broad brush strokes to fill the canvas on water legislation. The book marks a “watershed” in water legislation documentation. – Business Standard

]]> 4584 2009-10-02 03:08:18 2009-10-02 10:08:18 open open marking-a-watershed publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6662#comments wfw:commentRSS http://zikkir.com/business/6662/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6662 syndication_item_hash 6e9e208da67c4948f28869c5f39b3450 _encloseme 1 Setting the convention http://www.ethiopianreview.com/business/4583 Fri, 02 Oct 2009 10:09:15 +0000 http://zikkir.com/business/?p=6664 Hyderabad’s new convention complex is all set to host the 2010 ICCA Congress

While New Delhi is huffing and puffing to gear up for the 2010 Commonwealth Games, the very same year, Hyderabad will put itself on the world map for hosting a series of “mini Olympics”. The “mini Olympics” are massive conventions on everything from healthcare to power tools, explains Martin Sirk, CEO, International Congress and Convention Association (ICCA). According to him Hyderabad with its new convention complex, could become a major hotspot for such events in the world.

Sirk is on a trip to India to see first hand the preparations for the 2010 ICCA Congress in Hyderabad and he feels that this event will market Hyderabad as a world-class convention centre to the world. “Our congress is an enormous platform to showcase India among the about 1,000 delegates participating, one third will be CEOs and presidents and another third directors and vice-presidents from a variety of organisations and companies,” says Sirk.

ICCA focuses exclusively on organising, which includes taking care of the transport and accommodation, international meetings and events. These meetings are not corporate or government but are those that are held by a multitude of organisations from around the world. An example would be a convention of cardiologists from around the world. ICCA keeps a database of such regular events that happen across the world and its members can access data on these events so that they can either participate in or host them. The ICCA Congress is an annual gathering of its 850 members.

These conventions by organisations, according to Sirk are lucrative money spinners for host countries or cities. He says statistics compiled by ICCA has shown that on an average, spend by delegates who attend these conventions is three to eight times that of a regular visitor. A convention usually has between 700 to 1,000 delegates. He says these conventions, numbering about 7,500 annually as of 2008, are “not just how many bed nights”. Thus as a consequence a number of countries and cities across the world fight for a piece of the pie estimated at about US$ 12 billion.

Europe, Sirk says, leads the way with around 4,100 events annually and that is simply due to the sheer density of organisations in the continent. Following second is Asia and West Asia, which hold about 1,400 events. Sirk says this number is bound to grow as Asia’s influence on the global economy grows. Among the countries leading the way in hosting events in the Asia-Pacific region are Japan, China, Australia, Republic of Korea and Singapore. But the data gets interesting if one looks purely only at cities. Singapore is the undisputed leader followed by Seoul and Beijing, with New Delhi coming a distant 13th.

“In Korea every city has a convention centre and they aggressively chase this business. China has the infrastructure but doesn’t chase. Singapore is unique because the city-state government actively backs chasing and the city continuously wins even though it is among the most expensive destinations,” says Sirk.

The trick to attract such events, according to Sirk is for a “bid to be focussed on the business case”. He believes the host should bring people together and also show them what they can offer, thus benefiting in the long term. Sirk says he is impressed by both the Hyderabad International Airport and the convention centre, signing up as ICCA members. He adds that it is a departure from what he has seen in India. “The states here are more leisure-tourism focussed. And there is no one here doing city-level stuff. Also in India the capital development in hotels has been lagging behind. But they will soon catch up.”

Sirk says the hospitality industry in India is gearing up for this new business and the evidence of that is free broadband at major hotels. He says that is the first requirement for a modern meeting. “You can say this is the middle business for the hotel industry. The international associations meetings market is quite recession proof as bookings are usually done three to four years in advance,” adds Sirk. – Business Standard

]]> 4583 2009-10-02 03:09:15 2009-10-02 10:09:15 open open setting-the-convention publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6664#comments wfw:commentRSS http://zikkir.com/business/6664/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6664 syndication_item_hash a14893fca2d50c0174863235d1044e12 _encloseme 1 Newsmaker: V K Bhalla http://www.ethiopianreview.com/business/4582 Fri, 02 Oct 2009 10:10:20 +0000 http://zikkir.com/business/?p=6666 The former Indian Airlines pilot won a good deal for colleagues protesting a pay cut; but others question whether the victory was good for the airline.

No one in the National Aviation Company Ltd (Nacil), which runs Air India, would have ever thought that a protest by executive pilots would bring the state-owned airline to a halt. In that sense, Captain V K Bhalla, the representative of the executive pilots who went on a five-day strike, can claim a victory.

Fifty-year-old Bhalla is something of a controversial personality, even according to the colleagues whose cause he argued all week. For a start, his credentials to represent the protesting executive pilots, who account for about a quarter of the airline’s 319 executive pilots, are unclear.

The executive pilots have no union — they are barred from forming one once they reach the managerial cadres — but Bhalla claims he was elected, a fact his colleagues confirm. All the same, he is not uniformly popular. Some senior colleagues suggest he is not a good pilot (a worrying thought since he is now an instructor) and others use the term “loud mouth” and “lacking vision” to describe him.

Asked about these descriptions, Bhalla, who did his initial flying training from Patiala and later went to France for Airbus training, said they could only have come from a rival faction. “If I am not a good pilot how could I reach this level?” he points out.

Bhalla, however, likes to project himself as a simple man. Even though his job requires him to deal with computers for hours on end, he declined to e-mail Business Standard a photograph of himself saying, “Main to gawar aadmi hu, mujhe internet kaha aata hai.”(I am a bumpkin man, I do not know internet and all).

Whatever his skills as a pilot, it is Bhalla’s experience as a successful negotiator against the management that convinced the protestors — mostly pilots of the erstwhile domestic carrier Indian Airlines that merged with flag carrier Air-India in 2006 under the Air India tag — to accept his leadership.

Bhalla’s first stand-off with the management was in 1995, when he was president of Indian Commercial Pilots Association, which is the largest pilots’ union in the current merged airline and was then the only pilots’ union in Indian Airlines. (Bhalla remained the president for around a decade till the late nineties. He was later promoted to the executive cadre, which meant he could no longer be a union member.)

This was a time when many Indian Airlines pilots were leaving the airline for lucrative offers from emerging private competitors. Bhalla led a three-day strike to demand that Indian Airlines pilots’ salaries be put on a par with private airlines.

This prompted the management to form a committee under Vijay Kelkar, then petroleum secretary, to examine the issue. Since the pay rise did not coincide with any public sector-wide salary review, the solution was found in productivity-linked incentives (PLI) to bridge the gap with the private sector airlines. Although this system appeased the pilots at the time, it skewed salary structures in the sense that PLI came to represent almost five times a pilot’s base salary and most of it was not linked to productivity benchmarks.

This is what has caused the problem when it came to cost cuts for the pilots who were now part of the merged airline. The downturn in the airline business globally has forced Air India’s management to cut salaries and, as with any organisation, it’s the variable pay that usually faces the axe first. Only, for the Air India pilots, the variable pay forms a significant portion of their salaries.

Last Wednesday, the management mandated PLI cuts ranging from 25 per cent for those getting PLI of Rs 10,000 or less per month and 50 per cent for those receiving PLI or flying-related allowances of Rs 2 lakh or more a month.

The management justified the cutbacks on grounds that the airline had made losses of Rs 7,200 crore and, in any case, the move was temporary.

But pilots alleged that the airline management was focusing on staff costs to the exclusion of other areas of expenditure — such as fuel, overseas offices and so on — a contention the management contests.

Frantic efforts on Saturday night to allay the pilots’ fears by offering to set up a committee to re-examine the issue (a standard public sector panacea) proved unsuccessful. Bhalla argued that the basic premise of a PLI cut was faulty, plus the committee lacked representation from the pilots.

His leadership was tested and proved when the Mumbai-based pilots of the erstwhile Air-India, who had agreed to rejoin duty last Sunday, backed down on Monday evening after Bhalla refused to relent and the talks between him and Air India Chairman and Managing Director Arvind Jhadav failed.

Whatever the allegations and justifications, the four-day protest cost the airline Rs 80 crore in revenues at the height of the festive season. From carrying 33,000 passengers a day just before the strike hit, the airline only managed to ferry 10,000 a day, thanks to widespread flight cancellations.

With eyes on the crucial Maharashtra Assembly polls — Civil Aviation Minister Praful Patel comes from the state — the Prime Minister’s Office joined the dispute.

Finally, the agitation was called off on Wednesday morning after the management, under government pressure, agreed to keep the cuts in abeyance pending examination by a committee that would now have a pilots’ representative on board.

The past week has certainly ended in a victory for the pilots, but Bhalla’s detractors — and this includes other pilots — think the protest proved his lack of strategic vision. Pay cuts, they argue, were inevitable given the global downturn in the aviation business. Bhalla, however, says that he is satisfied with the outcome. So now, it’s probably a case of who’s the bigger loser. – Business Standard

]]> 4582 2009-10-02 03:10:20 2009-10-02 10:10:20 open open newsmaker-v-k-bhalla publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6666#comments wfw:commentRSS http://zikkir.com/business/6666/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6666 syndication_item_hash 288701b41a6b685543adcfe33d662bd2 _encloseme 1 A prisoner of conscience http://www.ethiopianreview.com/business/4626 Fri, 02 Oct 2009 10:12:14 +0000 http://zikkir.com/business/?p=6668 One of the most enduring images of Zhao Ziyang, flashed many times over worldwide, is of a pensive Zhao, with a young Wen Jiabao (later China’s Premier since 2003) in tow, addressing the pro-student demonstrators in the early hours of May 19, 1989, the day martial law was announced in China. The rest, as they say, is history.

Zhao Ziyang came, conquered in a hurry and then disappeared equally fast from the top echelons of China. He vanished from the public eye in 1989 after the Tiananmen massacre and his existence became a misty blur in China’s memory. The annals of history may remember Zhao Ziyang differently — this book would play an important role in that regard. The book should also be disconcerting to China’s present political dispensation, as it advocates parliamentary democracy as the way forward for the country.

Zhao was the liberal, pro-student face of China, willing to wager his position to side publicly with the students — so much so detractors said that he had the gall to set up the “second headquarters” under Deng Xiaoping’s living presence. But this stance led to his purge and eventual downfall. He spent the remaining years of his life under house arrest, and died in 2005.

In the interim years, there was very little on or about him that streamed out of China. But Zhao secretly recorded a personal account of the Tiananmen years — the complex power games, the intense factionalism and cliques — on old tapes lying around in the house which eventually found their way out of China, and have now been published in this excellent volume. The prime importance of this book lies in the fact that it provides an alternate reading of China’s political and economic history leading up to the Tiananmen explosion. It provides an insider’s sharp insight on China politics as well crucial markers to assess the historical contributions of Deng Xiaoping who, despite his outstanding economic legacy, scarred and obliterated a generation of youthful optimism.

For those not well-versed with China politics, Zhao’s rise as General Secretary of the Communist Party was meteoric. As Zhao himself admits, he had few guanxi (networks) in the centre. Zhao was somewhat of a household name in the early reform years because of successful agrarian reforms in Guangdong and Sichuan (Deng Xiaoping’s home province). It was this reputation which prompted Deng to bring him to the centre as Premier in 1980 and subsequently his success led to his elevation as the General Secretary of the Party.

Emboldened under Deng’s tutelage, Zhao pushed for a shift to contractual household farming. He was also the brainchild behind the famous line used so often by Deng: “One focus, two basic points,” which meant economic construction, with reform and open door as the two kegs of development. He was also the architect of the Special Economic Zones (SEZ) policy.

Zhao notes that rival cliques fought to influence Deng. He portrays Deng as a conflicted patriarch who had to manoeuvre and arbitrate between opposing camps of conservatives and reformists. Interestingly he points out that Deng could not, despite his supremacy, neutralise several of his comrades, the revolutionary veterans who continued to have an exacting presence within the Party. Zhao indicates that though Deng was the only “mother-in-law” (as Chinese say to imply the only one powerful enough) of the Politburo Standing Commitee, he had to consult with the old guard on all major issues.

Conflicted Deng might have been, but clearly, as Zhao points out, the Party verdict to characterise the 1989 Tiananmen student movement as counter-revolutionary was Deng’s decision, a decision he did not reverse despite pressure. Zhao seems to suggest Deng might have been motivated to do so under the influence of the hardliner Li Peng who, it seems, led Deng to believe that the students targeted Deng personally. Students had, in fact, raised questions as to why the Politburo needed to report to Deng at all (who held no office).

Zhao also sheds light on Deng’s views on political reform which, according to him, indicated administrative reforms geared to accentuate “the vitality and efficiency of the Communist Party.” Deng thought that China had an edge in having a system without restrictions or checks and balances (on the Party), and saw absolute concentration of power as “overall advantageous”.

As the Chinese Communist Party celebrates 60 years in power, Zhao’s book is an important chronicle of contemporary China politics and a look at how things work within the Party from an insider’s perspective. Amidst unprecedented challenges from the economic recession (which has put about 15-20 mn people out of work), and the Tibetan and Uighur ethnic explosions, the Party needs to introspect and learn lessons if it is to avoid another Tiananmen. As China modernises, the Party will need to figure out how to accommodate the aspirations of its populace. This year public opinion forced the government to backtrack on the plan to control the web which is a portent of things to come.

PRISONER OF THE STATE
THE SECRET JOURNAL OF ZHAO ZIYANG

Tr and Ed Bao Pu, Renee Chiang & Adi Ignatius
Simon & Schuster; 306pp; $40
- Business Standard

]]> 4626 2009-10-02 03:12:14 2009-10-02 10:12:14 open open a-prisoner-of-conscience publish 0 0 post _encloseme 1 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6668#comments wfw:commentRSS http://zikkir.com/business/6668/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6668 syndication_item_hash d0f17c721284a7dde0b235a38465bdd3 Nilanjana S Roy: A Nobel for Mr Dylan http://www.ethiopianreview.com/business/4625 Fri, 02 Oct 2009 10:13:41 +0000 http://zikkir.com/business/?p=6670 How many roads must a poet walk down before he is awarded a Nobel? The odds on the Swedish Academy announcing in a week’s time that Robert Zimmerman is the 2009 Nobel Literature laureate are low—25/1, according to Ladbroke’s.

That gives the tambourine man little leverage over this year’s best bets. Amos Oz, Philip Roth, the poet Adonis, Haruki Murakami and Thomas Pynchon make it to the top of the betting lists each year, with many saying Oz might get the nod. Given the Academy’s penchant for awarding the Nobel in literature to the obscurely erudite, Ladbroke’s and other Nobel-watchers always add in a handful of sternly literary contenders, just so that the rest of us can say “Le Clezio (or Jelinek) who?” when Nobel hour rolls around.

But Dylan’s stock, Nobel-wise, has been rising over the last decade—the current odds place him ahead of Salman Rushdie (80/1, and if they give him the wreath, can we please unban the Satanic Verses in celebration?), on par with Alice Munro (who’s already picked up the Man International Booker), and a hair ahead of Chinua Achebe, Carlos Fuentes and Mahasweta Devi (all at 50/1).

Dylan’s Nobel chances are often treated as a joke; it’s assumed that the austere guardians of the universal literary fame would never unbend far enough to award the Prize to a song-writer. Especially a successful one. And there’s the question of how Dylan, with his twin aversion to formal dress and formal speeches, would react to receiving the Nobel.

The reason why Dylan deserves the Nobel has nothing to do with his popularity, or the fact that his works are actually still quoted, discussed and in wide circulation today. Doris Lessing and Dario Fo, for instance, are classic examples of writers who earned their Nobels in terms of literary merit, but received the accolade perhaps a decade late, at a time when their best works no longer have the same impact as they once did.

The argument for Dylan would rest squarely on the quality and influence of his work over the years, and the fact that they have now become classics of modern poetry, decades after they were first composed. It’s not just that Dylan wrote great songs—he wrote songs that were deeply rooted in the history of his times, and in a musical and verbal folk tradition that goes back for decades.

The only reason he’s been kept out of contemporary compilations of world poetry is because of a kind of cultural blindness, a refusal to see that a song, however popular, however well-known, however frequently hummed, can be poetry as well. This is in many ways a bizarre barrier: poets like Mahmoud Darwish and Dylan’s fellow versifier, Adonis, have, like him, recited their verses in front of massive gatherings of fans, and have heard their lyrics chanted by thousands of voices.

Not convinced? Consider these two examples:

“Through the mad mystic hammering of the wild ripping hail
The sky cracked its poems in naked wonder
That the clinging of the church bells blew far into the breeze
Leaving only bells of lightning and its thunder
Striking for the gentle, striking for the kind
Striking for the guardians and protectors of the mind…”

And: “Now in the final act,/ disaster tows our history/ toward us on its face./ What is our past/ but memories pierced like deserts/ barricaded by what we see,/ marching under clouds that move/ like mules and cannon.”

The first is written by Dylan (from ‘Chimes of Freedom’), the second by Adonis. Both are poems that ask, in different ways, for justice and revolution—and you could argue, on the basis of metre and imagery, that both are equally powerful.

Try two more examples:

“I went out to the hazel wood,/Because a fire was in my head,/ And cut and peeled a hazel wand,/ And hooked a berry to a thread…”

And:

“I dreamed I saw St. Augustine,/ Alive with fiery breath,/ And I dreamed I was amongst the ones/ That put him out to death./ Oh, I awoke in anger,/ So alone and terrified,/ I put my fingers against the glass/ And bowed my head and cried.”

The first is W B Yeats, the second Bob Dylan—but the Irish poet and the American troubadour reach for a similar rhythm, a similar rhyme scheme and achieve the same effect of intimacy. Both are excellent poems; currently, only one of them is written by a Nobel laureate.

I know, it’s knocking on heaven’s door to ask that the Swedish Academy take Bob Dylan seriously, but you could make the case that he remains one of the most brilliant and enduring chroniclers of our times. It could happen. All it would take is a simple twist of fate. – Business Standard

]]> 4625 2009-10-02 03:13:41 2009-10-02 10:13:41 open open nilanjana-s-roy-a-nobel-for-mr-dylan publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6670#comments wfw:commentRSS http://zikkir.com/business/6670/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6670 syndication_item_hash fd14a9c154ecaa4054d3a7c6a5232a62 _encloseme 1 Lunch with BS: Anand Burman http://www.ethiopianreview.com/business/4624 Fri, 02 Oct 2009 10:14:39 +0000 http://zikkir.com/business/?p=6672 With Dabur insulated from the founding family’s ups and downs, its scientist-chief is free to pursue his interests – an oncology firm, a healthcare fund, even a new sax.

The facade has been done in sandstone. There’s a fleet of silver Ambassadors next to the porch. The staff all wear white muslin kurtas that reach the knee. Everywhere you meet the almost forgotten Indian greeting of pranam. Mosquito coils, circular like the chakra of life and death, are at the bottom of the tall glass windows. And the drinks have names that make them sound herbal, pure and life-giving: Gulab-jal (rose water), Banaras, Moksha, Prana, Surya, Satvic et al.

The names could also have been straight from the brand portfolio of Dabur, the homespun fast-moving consumer goods company. It is present across categories like health care, dental care, skin care, hair care and ayurveda. Some brands that can be exchanged with the drinks menu of Amanresorts are Gulabari, Pudin Hara and Uveda. Dabur Chairman Anand Burman agrees. He reads the details carefully. “Prana (life) is to add to it or take it out?” Banaras it shall be for both of us, a gin concoction laced with betel nut and paan, writes Bhupesh Bhandari.

Amanresorts is not crowded, though it is lunch hour. But I can see that a kitty party has begun to assemble at an adjacent table. Women dressed for the occasion are floating in. Restaurants love them because they eat well. But women at such parties have the habit of talking at the top of their voice and all at once. This strikes the other guests with terror. All conversation in the rest of the restaurant is pulverised to silence. Knives and forks begin to work at a brisk pace. Fortunately, the women here are quiet.

Burman is media-shy. He lets Dabur executives do all the talking. The subtle message here is that professionals run the company and not the Burmans. No Burman has an executive role. There are four of them on the board of 11. Technically, they could be outvoted by the other directors. Senior Dabur executives say the Burmans don’t ram their ideas down their throat. The story goes that the company had come up with a new candy and took it to the chairman before the launch. Burman found it horrible and spat it out. Still, the company launched it with great success! “Thank God that I am not in product development,” Burman remarks when I check the story with him.

Dabur and its promoters were the best kept secrets of India Inc till about 15 years ago when the Burmans decided to list the company on the stock markets. That is when they came out of the shell. Contrary to popular perception, the Burmans are not Bengali but Punjabi Khatris. The business was started by

S K Burman about 125 years ago in Kolkata. One of the first trained doctors in the country, he came out with an ayurvedic range to counter imported medicine (there was no penicillin around at that time, though quinine sold in large quantities).

As much as 85 per cent of Dabur’s business still comes from natural, herbal and ayurvedic products. Burman, 57, is a scientist (his father and the grand old man of Dabur, A C Burman, never got to finish college) with over 40 patents against his name. Even now, he admits, the days he rolls up his sleeves and enters the company laboratory are the best. How does he reconcile with a business that, some say, is not on a firm scientific foundation?

“You want to know the science,” says Burman, “I will give it you.” Our starters have arrived — Thai papaya salad for Burman and Ceasar’s salad for me. His father calls to check whether he will join him for lunch. Research has shown, Burman elaborates, that herbal and ayurvedic products have elements that can cure. The best-selling oncology drugs, he says, have roots in herbal products. So, where is the reason to doubt the efficacy of such products? “Our products are not just feel-good but do-good also,” says he.

He talks further of the properties of Pudin Hara to cure stomachaches. The brand, I inform him, was at one time extremely popular in my part of the country. To curb drink abuse, the government had declared the whole district ‘dry’. People sought refuge in Pudin Hara. It gave some sort of a ‘high’. “But the alcohol content is very low, just around 7 per cent,” Burman remonstrates. “Better than nothing,” I tell him. We agree another round of Banaras will make us stronger to take on the rest of the long day ahead.

There are several Burmans in Delhi. There are two trees, one has two families and the other three. Yet, they have stuck together. While families like Modi, Birla, Shriram, Bajaj and Ambani have split, the Burmans haven’t. How? Holding his Banaras by the stem, Burman spills the beans. Each generation has sorted out the shares amongst its progeny. So, says Burman, there is no issue over ownership. The Burmans have no executive role, so that removes any possibility of a conflict over who runs the company. Each tree gets two seats on the board. There is a family council of all Burmans which decides by consensus who joins the board. All Burmans are free to get into any business so long as it does not conflict with Dabur’s business, though they are free to compete with each other. The brand Dabur is owned by the company.

Burman, in fact, with one of his uncles, has floated a health care fund and has on his target a corpus of $200 million. Big Pharma, it is well known, has designs over homespun drug makers because of their expertise in making cheap generic products. This gives an excellent arbitrage opportunity to financial investors. “This hasn’t escaped our attention,” Burman admits. He had, to be sure, set up a pharmaceutical business with focus on oncology from scratch for Dabur. Some time ago, Dabur Pharma was sold to Fresenius Kabi of Germany. Did it hurt? Burman thinks for a while and then replies with an emphatic no. A partnership like this, says he, was essential if the company had to grow, especially in Europe. But Burman has grown a new chord with oncology. His private company, Onquest, has got into cancer diagnosis. Burman’s son, Aditya, looks after that venture.

What this means is that Burman has oodles of time at his disposal. “This helps me do some badmashi (naughty things) now and then,” says Burman. He plans to buy a new saxophone, go to the Singapore Grand Prix and watch it from the Force India pit. The main course arrives — a fish salad for Burman and Kerala fish curry for me. The portions are good.

Two salads in a day — Burman has to be a health freak. He also has for long had a fetish for the digit two. “What interests you in the number two,” I ask. “It’s not for number two money, I can assure you,” says he. But the number has been lucky, he admits. His cousin, Amit Burman, has a similar fixation for the digit one.

Dabur had, in the not-so-distant past, drawn up plans to spread its wings in the neighbourhood. It had set up a processing plant in Nepal along with the Rana family to take advantage of low-import duties there and the Himalayan kingdom’s open borders with India. The Maoist insurgency ensured it didn’t work half the time. Burman says the investment has already yielded enough returns for the company. But what about Pakistan where Dabur had announced a joint venture and even a factory? The company had made advertisements for that market? Those plans, Burman says, are as good as shelved, thanks to the uncertain regime of taxes there.

As we make our way out of the hotel (Amanresortschain is owned 50 per cent by DLF), I offer him two Dabur Hajmola digestive candies, one green and the other purple. He pops the green one. His wine red Mercedes rolls in. What’s the number on the plate? What else but 0022. – Business Standard

]]> 4624 2009-10-02 03:14:39 2009-10-02 10:14:39 open open lunch-with-bs-anand-burman publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6672#comments wfw:commentRSS http://zikkir.com/business/6672/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6672 syndication_item_hash ee292bbe371c9c9ad107f24a09f352a6 _encloseme 1 In memoriam? http://www.ethiopianreview.com/business/4623 Fri, 02 Oct 2009 10:15:38 +0000 http://zikkir.com/business/?p=6674 We are in danger of losing an entire generation of artists.

This column had previously made the case that among the casualties of global recession was the plummeting price of contemporary Indian art that fell 60 to 70 per cent. It is now being pointed out by industry analysts that even that estimate might have been too generous, and that values might have fallen by as much as 80 per cent. But an even greater toll might be the possible disappearance of an entire generation of contemporary artists.

The pointers are certainly in place for some of the biggest names in that space, and the cause is not a lack of talent — far from it — but an unexplained rise in their prices.

It seems like only yesterday that prices of contemporary artists had begun shooting past those of the masters, but without their much more solid foundation. Analysts had warned that these castles-in-the-air values were unsustainable and would in all likelihood have crashed. That this coincided with the global economic meltdown seems to have veiled what was clearly a weakness in India’s art distribution and retail system as a result of which prices were artificially pushed up and fell resoundingly in the process. After all, prices for contemporary Chinese or European, artists have not fallen anywhere close to these levels — they have suffered a 30 per cent dip at most, commensurate with what happened to art as an overall phenomenon.

In India, crashing prices has taken a toll that is only now beginning to play out. Among the greatest talents we saw in the recent past were artists such as Anju Dodiya or Bharti Kher, Atul Dodiya or Subodh Gupta, Manish Pushkale or Jagannath Panda. And yet, these artists seem to have fallen off the map. Once wooed and shown by every gallery in town, their works are being consigned to the basements as galleries try to revive the magic with older artists or their younger peers.

The reasons are understandable. In the last few years, the prices of, say, Subodh Gupta — his oeuvre of painted steel vessels had become almost a tired cliché — had rapidly escalated till the artist was commanding several crores for his canvases and installations. Those who represented the artist and were criticised for creating an artificial scarcity around his work to manipulate prices reacted by calling it a case of sour grapes, that contemporary art was a more confident representation of India, and that the fuddy-duddy masters had had their day.

When prices crashed by, say, 70 per cent, it created anger and resentment among collectors who wanted to offload what had become white elephants quickly. But at what price could they hope to sell? Gallerists, too, found themselves encumbered with works for which they had paid a premium, but were unlikely to realise that value for a long while to come — if ever.

But the biggest conundrum by far is that of the artist. At what price can the same artist now hope to sell his or her work when the market is suddenly flooded with their previous works that no one wants? You can’t price the works high because, of course, they won’t sell at all. You can’t price them low because then both collectors and gallerists who own works from previously much higher priced sales, will feel cheated, and this will create ill-will in the market. Newer collectors will reject these works on the basis of their history of crashed values.

It means these artists must lie low for a while and ride out the worst phase of the slowdown — though it will be a long while before they can hope to see a logical revival in their prices. By then they could be in danger of having become irrelevant to the market as younger artists move into the slots they previously occupied. And no, there’s not very much they can do about it: Already, galleries that would deal primarily with contemporary artists have moved swiftly into the sacred ground of their seniors, to deal in masters, a telling blow to and indictment of the contemporaries.

Is all lost? Well, the situation is bleak, certainly. All eyes remain on how auction houses, previously also blamed for artificially manipulating prices (they have always denied this), will return prices on contemporary works. It is interesting, though, that they are either not accepting consignments from sellers for some of the most scarred artists, or are promoting works by lesser celebrated peers whose prices at least will not cause major upsets among collectors.

That the trade has been scorched by the artists they once promoted is a lesson learned the hard way. So, stocks or not, they will find it very hard to justify the lower prices to their collectors, and as these artists grapple with what is a Catch-22 situation, the price trap might become the noose that will strangle them from the market — and from memory. – Business Standard

]]> 4623 2009-10-02 03:15:38 2009-10-02 10:15:38 open open in-memoriam publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6674#comments wfw:commentRSS http://zikkir.com/business/6674/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6674 syndication_item_hash cdc03c79d59b2c31ce43a26c1942fd7c _encloseme 1 A dated report card http://www.ethiopianreview.com/business/4622 Fri, 02 Oct 2009 10:16:44 +0000 http://zikkir.com/business/?p=6676 The world has significantly changed since India’s government-owned, premier think tank, the Institute for Defence Studies & Analyses (IDSA) held a conference in February 2008 to discuss the strategic transition in Asia, from which a collection of papers were collated to bring out this book. Unfortunately for IDSA, the world has moved on since February 2008 — and it doesn’t really matter if IDSA noticed or not — as a result of which positions argued by some of the writers are stale, while some facts have irrevocably changed.

Arguably, IDSA is a think tank, not a newspaper that withers away after 24 hours, so several authors and their arguments remain enormously interesting. Among them Xu Xin, who in the paper titled “The Chinese Concept of ‘Twenty Years’ Strategic Opportunities” points out that the Mandarin equivalent of the English word “crisis” is weiji, which is actually made up of two Chinese words, weixian, meaning “danger”, and jihui, meaning “opportunity”. Clearly, with Beijing having inherited the “mandate of heaven” that is as old as the Qing dynasty, every crisis is a worthwhile risk because it allows the ruler to push the national interest in ways that were not possible before.

Xu Xin, an associate professor at Cornell University’s Department of Government, contextualises China’s rise to the top with statements from Deng Xiaoping and Jiang Zemin that have large doses of weiji. As the Soviet Union’s destruction seemed imminent, Deng worried what would happen to his beloved China. “The problem now is not whether the banner of the Soviet Union will fall — there is bound to be unrest there — but whether the banner of China will fall.” Even the mighty Deng wasn’t sure, a whole decade after he instituted his economic reform, whether the end of the Cold War wouldn’t also strike a wayward blow against the all-powerful Communist Party of China.

Deng’s prescription was to reinforce the Party and “open wider to the outside” (Left parties in India, please note). Jiang followed in 1991 with his 28-character directive, whose simplicity of thought continues to surprise: “Keep cool-headed to observe, be composed to make reactions, stand firmly, hide our capabilities and bide our time, be good at keeping the low profile, never try to take the lead, and be able to accomplish something.” It’s like the Arthashastra and the Panchatantra all rolled into one.

Jiang went on, in 2002, to talk about the first two decades of the 21st century as an “important period of strategic opportunities” or IPSO. When combined with China’s determination to undertake a “peaceful rise” (heping jueqi), it’s easy to see how “facto” follows. Ipso facto, then, China has leveraged both ideology and globalisation to become the world’s No 2 power today, arguing that multi-polarity is actually a good thing because it will put a brake on the major powers.

The evidence is there for all to see. As Barack Obama prepares to undertake a major visit to Beijing in November and focuses his mind on the trillion dollar bonds that the Chinese own in the US Treasury, Beijing lifted internal travel restrictions to Macau, the world’s biggest gambling hot-spot. As casino stocks soared, the recession was, at least temporarily, forgotten.

Most of the rest of the book is typical conference talk, with little to lift it. Several Indian authors, save for Sujit Dutta, C Raja Mohan and Abanti Bhattacharya, write as if they’re talking to students in a mofussil town college, droning on and on in the heat with mosquitoes for company. There is little attempt to analyse facts from an Indian or any other perspective. This is a major problem that commonly afflicts Indian so-called knowledge centres and think tanks, and IDSA, despite the several crore rupees it gets from the government to spend, seems unable to rise above this mediocrity.

Dutta, a well-known China hand, is kind about India’s emerging strategic vision, arguing that although India’s rise is not as strident as that of China, it is nevertheless crucial because it is a “balancer and a stabilizer” in this age of uncertainties. C Raja Mohan, who has already moved on from his Singapore habitat to Washington DC (another small fact that ages the book) is much more brutal, arguing that India today is the “least consequential” for Asian security, the “weakest of the major powers” in Asia — then, expelling a sigh of relief, points out that India, “the once anaemic nation,” could actually be getting its act together, one which could have the potential of reordering the continent’s security architecture if it keeps with the 8-9 per cent economic growth.

Raja Mohan’s extremist language makes you pay attention, and one suspects that some of it is there to grab attention. He gets it, then goes on to profusely commend Curzon’s world view in which India ruled the roost and the seas from Aden to Malacca. It’s a bit unsettling, this approval of a man who divided Bengal in 1905 because he felt like it, but Mohan’s thesis is really about the need for weak powers (India) to tie up with strong powers (the US), in the hope that some of the great power’s ability to think big is passed on. He was, of course, vindicated by the passage of the Indo-US nuclear deal which made the world sit up last year and look at India anew. But he concludes, somewhat ruefully, that the guiding principle in India’s foreign policy remains non-alignment, because it continues to be understood as independent foreign policy.

Buy the book? Sure, although the IDSA library must have several copies to borrow.

GLOBAL POWER SHIFTS AND STRATEGIC TRANSITION IN ASIA

Ed NS Sisodia and V Krishnappa
Academic Foundation, with IDSA; 390pp
- Business Standard

]]> 4622 2009-10-02 03:16:44 2009-10-02 10:16:44 open open a-dated-report-card publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6676#comments wfw:commentRSS http://zikkir.com/business/6676/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6676 syndication_item_hash b5a8dd3c2b1070b553f1330c65ee4a5d _encloseme 1 Birds, bees and cricket http://www.ethiopianreview.com/business/4621 Fri, 02 Oct 2009 10:17:51 +0000 http://zikkir.com/business/?p=6678 It’s not about entomology, merely an advisory on a taboo subject.

Sex,” began a speaker at a conference on an insipid subject years ago. The large hall froze, the hum of networking suddenly silent. “And now that I have your attention,” the speaker continued, “we can talk about how to address the logistical gaps in the supply chain of retreaded condoms”.

All right, Umpire’s Post made up that last bit. It is impossible to remember the subject. It was so boring it could chill your spine, but everyone present heard it for at least the next two minutes.

And so it is that Gary Kirsten, who as a player amassed runs in an earnest and unobtrusive manner, has the world’s attention as the coach of the Indian cricket team. Not because of the team’s results, which, to be fair, have been unusually impressive in the last two years. Kirsten has always been steadfast in shunning limelight, emerging into a press conference only when necessary, and speaking very much like he batted.

But now, in a country where pregnant wives are still described in many parts as being under the weather, Kirsten appears to have extolled the virtues of sex before matches. Such activity ostensibly raises testosterone levels and improves performance — on the field. The four-page dossier was meant only for the team. So, quite naturally, it was leaked to the media.

It is a full-frontal challenge to one of sport’s oldest theories, that abstinence boosts performance. Robert de Niro, playing boxer Jake LaMotta in Raging Bull, swore off sex before combat and in one scene poured a jug of ice water down his shorts to cool his desire. Muhammad Ali is said to have believed that abstention turns boxers into warriors by making them mean and angry.

Both would have been happier in Indian cricket’s dressing room, now that it is embellished by the vision document. The section on sex asks: “Does sex increase performance?” And the answer begins: “Yes, it does, so go ahead and indulge.” India’s players were told: “From a physiological perspective having sex increases testosterone levels, which causes an increase in strength, energy, aggression and competitiveness.”

As Kirsten’s effigies were set alight in Indore by supposed BJP supporters for being an affront to Indian culture (now you know what we mean by wives under the weather!), and BCCI privately demanded an explanation, Kirsten made the ‘unique’ statement that he had been quoted out of context. He suggested that the dossier was only to provide players with information and was not an advisory. He also said that the article was not compiled by him but by his fellow South African Paddy Upton, the team’s mental conditioning expert. But no one is listening anymore, certainly not your columnist, who is wondering how this team full of young bachelors would cope with the advisory. Man-woman relationships in this country still rely on social sanction, which one can obtain only by publicly confessing one’s private intentions. There would be rampant speculations about the Bollywood dalliances of Mahendra Singh Dhoni, Yuvraj Singh, Zaheer Khan and others, but we still like to keep them inside large cars with tinted windows. So, will good performance on the field raise eyebrows at home?

But there is no worry. Kirsten, or Upton, or whoever wrote the ‘vision document’, is also believed to be high on self help. “If you want sex but do not have someone to share it with, one option is to go solo whilst imagining you have a partner, or a few partners, who are as beautiful as you wish to imagine.”

Mahendra Singh Dhoni, India’s captain, was asked whether the advice had been taken on board. “No comment,” he said, smiling. “You knew when you asked that I wouldn’t be able to say anything about that.”

See, we told you so! – Business Standard

]]> 4621 2009-10-02 03:17:51 2009-10-02 10:17:51 open open birds-bees-and-cricket publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6678#comments wfw:commentRSS http://zikkir.com/business/6678/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6678 syndication_item_hash 5e719a7a9aebd5fab48929d5b9054e0b _encloseme 1 The Lankan boys http://www.ethiopianreview.com/business/4620 Fri, 02 Oct 2009 10:19:06 +0000 http://zikkir.com/business/?p=6680 The youth in Sri Lanka have much to say about the politics of war and censorship in their country and they are saying it through music.

They have lived through a long-standing civil war and now they are singing about it. Paranoid Earthling, one of Sri Lanka’s popular rock bands, are almost rebel-like in their musical avatar, if you would care to listen. On a sultry Delhi afternoon, the band of four, twenty-something boys, and their charming lady manager are sipping beer at Hard Rock Cafe, ostensibly recovering from an early morning flight to the city from Colombo. This Nirvana-inspired group makes its rockstar presence felt right away, and with the long, curly locks in place, trademark black Ts and swinging guitars, they are eager to please the Indian ear. Brash and grungy their music might be but this band is — surprisingly — a mellow lot in conversation, curious about Indian music and quite bowled over by the music of popular Indian rock band Parikrama.

And if the quartet is excited about their maiden performance in India at Hard Rock Cafe, they are equally sceptical. “Do you think Thursday is a good day to have a concert in this city? Will people come out to hear us play on a weekday?” they worriedly inquire. The following week they are scheduled to travel to Bangalore for a gig, and are hoping to land a few more concerts in the country. Their music — a mix of punk, funk, 70s retro-blues and psychedelic sounds — may not be new to the Indian music scene but the difference, they insist, lies in where they come from.

It was in the quiet hills of Kandy, their native city, where the boys met at school and decided to start a band. Mirshad took on guitar and vocals, while Asela, the bass. Brothers Dhanushka and Shanka began with the guitar and drums. “We were like outcasts in school because — in those days — most of our classmates were listening to “Barbie doll” and “Vengaboys,” smirks Mirshad. Paranoid Earthling found themselves taking cues from several Western musicians: Marilyn Manson, Rammstein, Alice In Chains, NIN, Smashing Pumpkins, Pearl Jam, The Mars Volta, Jimi Hendrix,

The Doors, Led Zeppelin, Pink Floyd …. “The list is endless,” says Dhanushka. Like most pubescent bands, the group started performing by playing covers before graduated to composing their own music. Ten years on, their original debut album is on its way, slated for recording early next year.

The band finds it encouraging that their audience is growing, if gradually. But there is a sense of hostility in the air, they say, especially amongst those who disapprove of such Western influences. “The years 2003-06 were great for rock music in Sri Lanka. The rock movement pioneered by an independent organisation, Rock Company, gave many upcoming musicians a platform. Since then, things have slowed down. Now most of the new-age music such as grunge rock, punk and techno and electro is still underground. There’s almost no trace of it on radio or television either,” explains Asela, a self-confessed web geek who maintains the group’s database of songs on MySpace and YouTube. Ironically, despite Western music gaining ground in Sri Lanka, live concerts are dwindling in number. One of the primary reasons was a bill passed by the Sri Lankan government in 2006 to ban any endorsement and advertisement of alcohol and tobacco-related brands. Major sponsors, such as Carlsberg, could not support gigs any longer.

A decade into the music business, Paranoid Earthling feels closest to compositions that speak of the politics of the war, society, and censorship in Lanka. “In the current scenario, youngsters are able to relate to our rebellious songs,” says Asela. “There are many bands like us in Sri Lanka who also feel strongly about democracy, violence, conflict, religion and social hierarchies. Through our music, we call for social change and transformation,” he explains. There is a good chance their songs can be considered repetitive, or even controversial. “We can’t escape it,” reasons the band’s manager, Ruwanthi Jayasundara. “We grew up amidst everyday bombings and hearing about people around us being killed everyday,” she says. Not surprisingly, their grunge looks gets them regular stares on the streets. They’re “troublemakers” as far as the cops are concerned and “viewed with suspicion”.

Music may be their first love but members of Paranoid Earthling are wise to keep stable jobs. While Dhanushka is a banker, Mirshad is a graphic designer. Asela sticks to what he does second best, freelancing as a web designer. Shanka — the other members of the band wave their hands enthusiastically to declare — is a brilliant artist. Financial stability has enabled them to produce their own work. Additionally, the power of the Internet has offered them a freedom in the music world they haven’t experienced before.

If Paranoid Earthling is experimental in what they play, they are conservative when it comes to the dynamics of the group. “Our line up has remained the same right from the start. It’s now impossible to work without each other or with outsiders,” says Mirshad. Some brotherhood, this!
- Business Standard

]]> 4620 2009-10-02 03:19:06 2009-10-02 10:19:06 open open the-lankan-boys publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6680#comments wfw:commentRSS http://zikkir.com/business/6680/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6680 syndication_item_hash e534d1122fdb235353b5e13ac826e7c4 _encloseme 1 Youth in power http://www.ethiopianreview.com/business/4619 Fri, 02 Oct 2009 10:19:56 +0000 http://zikkir.com/business/?p=6682 Various awards in performing arts categories felicitate young minds.

Recently, in Delhi, the Central Sangeet Natak Akademi gave away the Ustad Bismillah Khan Yuva Puraskar to young people in the field of performing arts. Around 30 young practitioners received these awards in recognition of their potential and the promise that their work continues to show in the field of dance, music and theatre. The award ceremony was followed by a six-day festival that showcased the work and talent of these young practitioners. It was very heartening to see that some of the youngsters who were awarded had tremendous maturity, one that was showcased in the complexity of their respective works. In theatre, some are definitely in the forefront of producing cutting edge work and towards the creation of a new theatre language. Overall, the confidence of the young and their courage to take risks did come across at the festival. One hopes that these young artistes will get a boost from this significant recognition and go on to achieve greater heights in their respective fields.

These awards have been instituted quite recently by the Akademi and are separate from their other awards where senior artistes are awarded. In fact, a majority of artistes in the performing arts category get rewarded after they are well past their creative period. In fact, receiving awards after artistes have put in a number of years into the profession does not — apart from giving satisfaction — play any major role in giving them any inspiration or a foothold — which they already have — in their respective field of creative arts.

That’s why, it is heartening to see that several awards are instituted for the young by both private and government run organisations. Sanskriti awards, for example, are given to people in the age group 25-35, in the field of journalism, arts and literature by the Sanskriti Foundation. National School of Drama also has two awards for its outstanding alumni — BV Karanth Award for those above 50 years and Manohar Singh Award for those who are below 50 years. There are several awards in literature that are instituted through private initiatives. The recently held Bharat Bhushan Agrawal Puraskar is for young poets below the age of 40, Devi Shankar Awasthi Award is given to young literary critics and there’s also a Raza Foundation Award for young artistes.

But I wonder if there is an effort to keep track of the growth trajectory of the young people awarded? It would be important to know whether such early recognition gives youngsters renewed energy and opportunities to take their art forward. Or, does it tend to make them complacent and hinder their growth? Several private initiatives do try to follow up the career growth of their awardees. One is, however, unaware if the same is true of official organisations. It may be a good idea to do so and then, if required, alter the criterion periodically for selection of awards.

In a society and culture like ours that puts great premium on seniority in every field, one is glad that there is a gradual tilt towards instituting awards for the young. Is it because — in a fast globalising world — it is the young that are dictating the world trends in every field and hence, it is necessary to take note of them? After all, the media, the films and the politicians have definitely taken this reality on board! Or, is it because artistes are recognised in numerous other fields rather early and not recognising work in creative fields will disillusion young minds? Is it because awards have gradually become an arena for control and power and hence want to take the young into their fold of control? – Business Standard

]]> 4619 2009-10-02 03:19:56 2009-10-02 10:19:56 open open youth-in-power publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6682#comments wfw:commentRSS http://zikkir.com/business/6682/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6682 syndication_item_hash 54bbae8ddeab901c31fc918dd17665a5 _encloseme 1 Into cricket’s twilight zone http://www.ethiopianreview.com/business/4618 Fri, 02 Oct 2009 10:21:48 +0000 http://zikkir.com/business/?p=6684 With the rise of T20 in cricket, the 50-over format faces an uncertain future.

It’s difficult to pin point the exact moment at which the downfall of one day international (ODI) cricket began. The initial seeds were sown when the concept of T20 was floated, though doubts were laid to rest as the 50-over format continued to enjoy popularity amongst fans. Then along came Indian Premier League (IPL). Fans, broadcasters and even players had found something new and exciting, and, suddenly, the ODI seemed like a thing of the past. Nevertheless, after the first season of the IPL, the dwindling interest in ODIs wasn’t generating much worry.

All of a sudden, now everyone is concerned about the issue. The recent ICC meeting even had this “problem” on its agenda. Meanwhile, the England and Wales Cricket Board (ECB) dropped the format from its annual cricketing calendar and replaced it with the 40-over format.

Players — in the past and present — have aired their opinions on what could be done to save or rather revive the interest in the format which till last year seemed to be a favourite amongst many. Sachin Tendulkar wants to see a game of four quarters to reduce the impact of the toss and advantages bestowed by conditions. Sourav Ganguly and Brett Lee agreed with him. Dean Jones has proposed a 40-over game instead, essentially two Twenty20 games with sixes becoming eights to encourage even greater hitting. It was a radical idea and unlikely to be implemented. Many others, including former Australian great Shane Warne, want to put an end to the 50-over format.

Former England captain Michael Atherton, in one of his columns for The Times newspaper, hit the nail on its head. Atherton wrote: “The 50-over game is suffering from more than administrative myopia; it is suffering an existential crisis that was probably inevitable in the wake of Twenty20. Sandwiched between the longest and shortest forms of the game, it neither appeases the traditionalists nor does what it was originally designed to do — to entertain and titillate — now that Twenty20 can do those things much better. Its sole purpose is financial.”

Former Indian wicket keeper Saba Karim agrees with that thought. “The ODIs were always exciting to play and they provided the administrators a lot of revenue,” he says. Now we have T20 doing that and in a much better way. While the general belief was that Test cricket rather than ODIs would face the wrath of T20, Karim says the former will survive come what may. “It’s still the ultimate aim of all youngsters to earn the Indian cap.”

It’s an opinion which Harsha Bhogle echoed on a television show. “I think you don’t need to worry about Test cricket as long as you produce sporting pitches because the history of the game will tell you that good pitches produce good cricket and bad pitches produce bad cricket.” However, Bhogle says that the ongoing Champions Trophy would be the litmus test for the format.

Karim’s view about the revenue bit is, however, contested by many. “More cricket means more money, doesn’t it?” asks a confused former coach, Anshuman Gaekwad, who feels it needs to made more exciting. “The ICC should take this issue seriously or the ODIs will be extinct pretty soon,” he adds.

The suggestions made by players have not received a thumbs up from the ICC so far apart from a slight indication that they may ponder over Tendulkar’s idea of having four quarters of 25 overs each. Problem is, these ideas sound too vague, says Pravin Amre, coach of the Mumbai Ranji team. “Does cricket need so many formats?” asks Amre. The problem, according to Amre, lies in the 15th-40th over period of an ODI. “We know T20 is here to stay for good and test cricket will survive, so the casualty has to be the 50-over game.” What is the possiblity of a revival of this format if the suggestions of amendments are put into action? It’s worth giving them a shot, says Karim. “You never know, it might just do wonders for the game,” he adds. World Cup winning captain Kapil Dev was recently asked about it and disagreed with the idea. He was quoted as saying: “I don’t think you can have so many combinations and so many things. Every cricket — 20 overs, 50 overs and Test matches — has its own value so let us not muck around. The more you muck around the more you are going to spoil cricket.” Now “muck around” is an interesting phrase and the ECB has been the biggest name to start the mucking around. It did come as surprise — though not a shock — that the ECB decided to drop the format and said they want to “review the future of the format”. Former cricket captain Zaheer Abbas was vocal about how certain powerful boards might just push ODIs further and further away. Players so far have been optimistic about the format staying afloat, though amendments are necessary, they say.

Broadcasters and advertisers, meanwhile, find it viable to have a range of formats at the same time. “The more the merrier,” says a senior executive of a sports channel. Television ratings, however, in the last few ODI series have fallen, and now advertisers prefer to pump in money for T20 instead. “The eyeballs a T20 game guarantees cannot be matched by ODIs but there’s enough scope for ODIs as well,” says the executive.

The BCCI, on its part, has kept mum on the issue so far, though Lalit Modi mentioned making the format more attractive for the “consumer” who does not have the patient to sit through an eight-hour match and is looking for instant gratification instead.

So who takes the blame for this dwindling interest? “I don’t think anyone is to be blamed,” says Karim. With new and exciting formats, it’s time for a change, he says matter-of-factly. On his part, Gaekwad believes it’s upto the administrators to look into the issue. “There are still fans who are willing to sit for eight hours in the heat to enjoy the game and the authorities have to think about them,” he says.

The 2011 World Cup scheduled to be held in the subcontinent could very well be the last major ODI event. The ODIs seem to be in a twilight zone. All said and done, the ODI format will need to undergo some changes in order to restore its proud place on the ICC calendar. Will there be any turning back for the ODIs? We’ll wait and watch. – Business Standard

]]> 4618 2009-10-02 03:21:48 2009-10-02 10:21:48 open open into-cricket%e2%80%99s-twilight-zone publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6684#comments wfw:commentRSS http://zikkir.com/business/6684/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6684 syndication_item_hash 0dbfb25d1b31670eb19cccf3fc186f14 _encloseme 1 Palaces, lights and action http://www.ethiopianreview.com/business/4617 Fri, 02 Oct 2009 10:22:33 +0000 http://zikkir.com/business/6686 The city of Mysore continues to attract visitors with its Dusherra festivities.

If there’s one place where you should be tomorrow evening, it is Mysore. The city has had a longstanding tradition of celebrating Vijaydashami. The Dusherra festivities were first started by the Vijayanagar kings in the 15th century. Later, Raja Wodeyar I continued the celebrations and made sure that the entire Mysore Palace was lit up for 10 days leading up to the day of Vijaydashami.

That tradition continues even today and, in fact, makes the city of Mysore one of the major attractions for tourists who come from all over the world to witness the lighting spectacle of the palace.

There’s a special procession of decorated elephants, camels and horses which is carried out on the streets of Mysore even today. The royal family worships goddess Chamundeshwari on this day. If you happen to be in Mysore for the festive season, the Chamundi temple, located atop the Chamundi hill in Mysore, is definitely worth visiting. The procession to the temple is what makes the event even more fascinating and includes colourful tableaux, lots of traditional music and dances performed by local groups of dancers and musicians. Speaking of traditions, wrestling matches were introduced as part of Dusherra celebrations in the 16th century. It continues even today and if you’re in Mysore for Dusherra, you’ll be there to witness many such matches.

Another attraction in Mysore at Dusherra time is the exhibition which is held in the exhibition grounds near the main palace. You’ll find a lot of rural crafts here, including Mysore style of paintings, traditional Mysore silk sarees and products in various other categories. In fact, typical to Mysore is the inlay work done in rosewood. Our suggestion: Pick up little boxes in rosewood- and sandalwood-inlay work for your relatives and friends.

A tour to the City of Palaces is incomplete without visiting Amba Vilas (the main palace), Jaganmohan Palace (now converted into an art gallery) Rajendra Vilas (the royal family’s summer palace), Lalitha Mahal (now a heritage hotel property) and Jayalakshmi Vilas. The art gallery at Jaganmohan Palace includes, besides works of other artists, paintings by Raja Ravi Varma. Other exhibits here include weapons of war, musical instruments, sculptures, brassware, antiques coins and currencies. – Business Standard

]]> 4617 2009-10-02 03:22:33 2009-10-02 10:22:33 open open palaces-lights-and-action publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6686#comments wfw:commentRSS http://zikkir.com/business/6686/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6686 syndication_item_hash 735dbfdb765f2fdd150f5b69fcbb9f29 _encloseme 1 On a long, rocky ride http://www.ethiopianreview.com/business/4616 Fri, 02 Oct 2009 10:23:39 +0000 http://zikkir.com/business/?p=6687 A group of adventure cyclists in Gurgaon insist: tougher, the better.

It’s 4 am on a Sunday morning and a bunch of cyclists from Gurgaon are on the road, on their way out of the city. Their mountain bikes slide easily on the highway, as they race towards the Aravallis, looking for the tough dirt trails that will put their bikes to real test. Meet the Pedalyatris — a group of serious adventure cyclists, perhaps the only such organised one in the country. The members, from different walks of life, have but one similarity: they are here to “bike seriously, and not to network”.

It’s a motto that one of the founder members of the group, journalist Rajesh Kalra, is fiercely stringent about. The energy for the road is palpable, the enthusiasm for adventure, infectious. “Cycling is addictive,” says Kalra. The group is still reeling under the success of last week’s race they organised, the MTB Aravalli Challenge, which saw over 150 participants. “Who knew there were so many people who ride a bike in the city?” says Jasbir Singh, one of the early members of Pedalyatri. A brand consultant, Singh lends his expertise to the group, whether it is in designing logos, or corporate communication.

The yatris have even tried to cycle to work. “It’s feasible only for those of us who live and work in Gurgaon. But we figured one will have to be more organised about bike rides. We have identified two stretches in Gurgaon which are relatively all right to ride on when we head out on weekdays. We make sure by 4:00 am everyone’s on the road, and we get back by 6:00 or 7:00 am by the time everyone is waking up,” says Kalra. When the members have more time, on weekends or holidays, they head out to the hills, where they can play with gears, and challenge themselves. The members point out that the mountains are far safer for cyclists, because people are a lot more careful on the road, and much more sensitive. Recently, a few of them, including Kalra, went as far as to cycle a 170 km-distance from Leh to Pangong Lake, the third-highest motorable road in the world. Another interesting experience was discovering indiscriminate mining in a part of the Aravallis. “We were astounded to see such destruction of nature,” says Kalra.

Environmental concerns are important for Pedalyatri. Of the 85 permanent members of the group, many of them women, 18-20 get together and plan a ride. “We rely heavily on technology for our planning. We look up Google Earth, find an interesting trail, and go do a recce,” explains Kalra. The trails are chosen on the basis of its levelling, whether it is too puncture prone, and the surroundings. “Though we would ordinarily avoid a road which will give us too many punctures, it’s actually exciting to be on a trail like that,” laughs Kalra. It’s a challenge they take to easily, for all of them can repair a flat tyre in a matter of minutes.

Come Saturday, sometimes Sunday — depending on who’s free which day —these cycling enthusiasts hit the road early so they have it entirely to themselves. Some of them cycle for a little while everyday. A doctor, Atamjot Grewal, who heads administration at Artemis Hospital, is on call at her job 24 hours a day, 365 days a year. But she won’t miss her daily 5:00 am bike ride. “Being a woman, I need to be more careful about being out by myself.

I choose roads closer to my house. Earlier, I used to cycle by myself, cycling in villages, just riding around and exploring the area. Riding is like second family to me,” she says. Three months ago, Grewal joined Pedalyatri and she’s thrilled that she’s ridden 600 km with them already. “It’s not only about cycling. We, in the group, are also extremely concious of our environment and community,” she adds.

Recently, Pedalyatri has adopted Critical Mass cycling, a concept which comes from San Fransisco. The idea is to point out in public that cities are unfriendly towards cyclists. The group hopes to draw the attention of the government in this matter, and push for cyclists’ lanes and better urban planning. “The traffic rules and roads aren’t designed to keep in mind the cyclist. Though the Bus Road Transit (BRT) has a cycling lane, you would have seen how motor vehicles barge in there,” points out Kalra.

Next on their calendar: A river rafting-cum-biking trip to Rishikesh. Till then, the 50-km rides around the NCR will have to do. “It takes a lot of our personal space, and we sacrifice our time with family. But that is one of the trade-offs. It’s our passion, after all,” says Singh. All for that adrenaline rush. – Business Standard

]]> 4616 2009-10-02 03:23:39 2009-10-02 10:23:39 open open on-a-long-rocky-ride publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6687#comments wfw:commentRSS http://zikkir.com/business/6687/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6687 syndication_item_hash dbdbcb723a465a1e6a7d5a7b5a01e34e _encloseme 1 Heinz and a can of beer http://www.ethiopianreview.com/business/4615 Fri, 02 Oct 2009 10:24:35 +0000 http://zikkir.com/business/?p=6689 He may not be playing head chef anymore but Heinz Egli continues to delight us with his unusual recipes.

For the chef-turned-general manager, Heinz Egli of Novotel Mumbai, the kitchen continues to be a sacrosanct place even though he barely gets to play the head chef now. “Once a chef, always a chef,” Egli beams happily. He’s busy with endless meetings and most of them involve issues of hotel administration, even the choice of music that has to be played while people enjoy their food at the hotel.

Food, of course, occupies a very central role at Egli’s hotel. The Chilli Chocolate Mousse, for example, is a favourite with patrons and Egli continues to surprise guests with his creations like pumpkin seed oil in ice-cream or, better still, his latest signature dish which he has christened Kingfisher Chicken. “Beer is perfect for marinating chicken and it does not dry the chicken,” reasons Egli. He defends his unconventional style of cooking and maintains that though his ingredients sound unusual, sometimes the pairing of two completely different ingredients can work wonders for creating dishes. “Chilli, for example, compliments cocoa beans really well and together they can be a perfect combination.”

An avid musician, 38-year-old Egli plays the guitar and is now learning to play the sitar. “Don’t take me to be just an old chef. I have my own rock band in Mumbai,” he chuckles. When he is not overlooking the younger kitchen hands, Egli jogs along the beach. He even nurtures the hope to inspire his Novotel Mumbai team to run the Mumbai marathon next year.

After one-and-a-half years of being in India and running as many as five restaurants at Novotel, Egli says that he refuses to serve pasta with curry or, for that matter, combine spaghetti with Indian spices. “I won’t cook to please others and I certainly can’t alter my style of cooking,” he says.

Being a perfectionist, Egli — not surprisingly — has personally created and tested every single dish that is listed on Novotel’s carte du jour. If you come away impressed with the presentation and dressing of any dish on the menu, remember to credit Egli for it.

Spread across 2.5 acres of scenic Juhu beach-front, Novotel is Egli’s baby. “I came to India as a consultant for Novotel, and stayed back as the GM. I have set up the entire hotel, including the menus, staff uniforms, eco-friendly measures adopted in the hotel and even the wine selection,” he says with an unmistakable sense of satisfaction in his voice.

From being chef for nearly 28 years, his graduation to an administrative role as general manager has taken a lot of restraint, confesses Egli. “The younger chefs on the kitchen floor have so many ideas that I felt it was time to step aside and make way for them.” So Egli now heads a team of 300 people at Novotel but he still begins his day by the doing rounds of the kitchen and monitoring the chef at work. “I will always be a chef first,” he smiles.
Touche.

FAVOURITE RECIPE

KINGFISHER CHICKEN
1 whole chicken

For the marination
Paprika powder 10 gm
Crushed black peppercorn 5 gm
Barbeque sauce 50 ml
Fresh rosemary 2 gm
Salt to taste
Oil 15 ml
1 Kingfisher can (500 ml)

Take the whole chicken and drain off excess water and pat dry it with towel. Prepare a marination of all the ingredients, check for seasoning and marinate the chicken for a minimum of six hours. Set the oven at 180° C. Take the marinated chicken and place a rosemary sprig in the cavity.

Open a Kingfisher can and seat the whole chicken on the can (as shown in picture). Place the can and the chicken in the oven and roast for 30 minutes. You should, however, keep checking the temperature and colour of the chicken (it should be golden).

When cooked, serve the kingfisher beer flavoured chicken with the can. – Business Standard

]]> 4615 2009-10-02 03:24:35 2009-10-02 10:24:35 open open heinz-and-a-can-of-beer publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6689#comments wfw:commentRSS http://zikkir.com/business/6689/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6689 syndication_item_hash b31d0356d4d402af53a9e00903842494 _encloseme 1 Not just football, this http://www.ethiopianreview.com/business/4614 Fri, 02 Oct 2009 10:25:53 +0000 http://zikkir.com/business/?p=6691 The Damned United is more than just a sports film. It captures human emotions.

It’s a bit of surprise that football — or soccer, if you prefer the American term for the sport — has not been given its due as far as mainstream cinema is concerned. There have been movies on American football, basketball, baseball… Football, however, has been largely overlooked. And this is despite a strong British presence in Hollywood over the years. Thankfully, Tom Hooper’s The Damned United fills that void to a great extent.

Based on Brian Clough’s ill fated 44-day tenure as manager of Leeds United, The Damned United shows what goes behind the scenes of a football club. Now, Clough might not be a known name to those who are unfamiliar with football but the man was arguably one of the greatest managers in English football. But you don’t have to be a football lover to get into the groove as far as The Damned United is concerned.

Martin Sheen, who plays Clough, does a great job in bringing one of the most complex characters in the world of football to life. Clough, for those who know their football well, was an eccentric and egotistical person. And Sheen succeeds in stepping into the role of this real-life character. The actor takes the centre-stage in style and quite clearly The Damned United will add sheen to his resume.

The movie is an adaptation of David Peace’s 2006 novel by the same name and travels back and forth between Clough’s hiring as the new Leeds coach, following the departure of the English national team’s legendary manager Don Revie (Colm Meaney).

Under Revie’s reign, Leeds United was the best team in the country and when he departs, chaos — obviously — reigns supreme. Once young Clough takes over the job, he is hell bent on changing everything — the players, their practice routine — and leaving his indelible mark on the team. Having shared bitter rivalry with the team’s former coach, Clough’s aim is to take the club out of Revie’s shadow.

The players don’t take too well to the changes and rebel against Clough. However, the movie doesn’t focus on the club but on Clough and that’s precisely the reason why it works. Clough is a fascinating character and it has to be credited to Sheen for portraying the role — in shades of grey — so convincingly. Sheen, for the record, is known for playing public figures in his movies and has, in the past, played former British PM Tony Blair in The Queen and David Frost in Frost/Nixon.

The movie revolves around Clough’s relationship with two men who played a massive role in his career. His right-hand man Peter Taylor, the calming voice of reason and football talent-spotter, who refuses to go with him to mighty Leeds and secondly, his bitter rival in football, Don Revie, his predecessor as Leeds manager, whose ghosts he can’t exorcise from the team.

While Taylor stays back, Clough takes the Leeds job and the film brilliantly captures how the two men (Clough and Taylor) need each other and how their respective decisions of separating affects their professional as well as personal lives.

Interestingly, despite it being a football film, there are very few sequences on the field. That, however, is not the disappointing part. Having read the book, I must confess that there are quite a few things which have been left out. And that’s what is a bit disappointing. One wonders why one of the most powerful scenes of the book, when Clough burns down Revie’s office at Leeds, has been left out in the film?

The movie, enjoyable on the whole, tells a story of a man who has not been given his due credit. You might not have heard of Brian Clough and you may be unfamiliar with football. But watch the film for Clough, the eccentric genius that football produced. – Business Standard

]]> 4614 2009-10-02 03:25:53 2009-10-02 10:25:53 open open not-just-football-this publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6691#comments wfw:commentRSS http://zikkir.com/business/6691/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6691 syndication_item_hash 77c3f240bcc87b651b22629096c3834e _encloseme 1 Don’t worry, be happy http://www.ethiopianreview.com/business/4613 Fri, 02 Oct 2009 10:26:40 +0000 http://zikkir.com/business/?p=6693 There are many things I have striven to do in my life but never managed. One is to write these columns in advance so that I can travel without my laptop. Another is to visit Bhutan, that beautiful, sensible little country snuggled into the north-eastern border of India. One of the main reasons I want to visit is that they are best known for being less concerned with GDP than with what they call GNH, or Gross National Happiness. The king of Bhutan became the first head of state to make happiness an official yardstick of his country’s well-being.

Economists, who run the world thanks to their expertise in keeping their heads mainly up their behinds, think this is laughable at best and disgraceful at worst. But their bluff is increasingly being called as the world asks itself if income, production and consumption are really the best way to measure the health of a society, and begins to consider the possibility of evaluating progress on the basis of a more holistic human experience instead. They call it happiness economics, and while it’s not likely to replace traditional economics entirely, it may well end up being seen as a legitimate and necessary supplement to traditional measures of a country’s well-being.

We are finally asking, for instance, how much happiness we actually get out of money, and whether health care and education might have a role to play in addition to money. The answers (“not incrementally much beyond a certain point”, and “what do you think, genius?” respectively) are surprising only if you happen to be an economist. Even French President Sarkozy is introducing a Happiness Index for his country and eschewing what he calls the “cult of figures”.

The idea that happiness may be an important component of quality of life is slowly gaining traction among academics and social scientists, which means that we should soon have reams of dull literature on the subject. There is already a vast such body — a Happy Planet Index, for instance, and a Journal of Happiness Studies. We can finally sleep at night secure in the knowledge that professors at Harvard are diligently ruining happiness by studying the hell out of it.

According to a University of Leicester survey called the World Map of Happiness, Bhutan is the happiest country in Asia, and the eighth-happiest in the world, and frankly, that’s good enough for me. Wikipedia also says that in the 2005 survey “45 percent of Bhutanese reported being very happy, 52 percent reported being happy and only three percent reported not being happy…the Happy Planet Index estimates that the average level of life satisfaction in Bhutan is within the top 10 percent of nations worldwide, and certainly higher than other nations with similar levels of GDP per capita.”

In his delightful book The Geography of Bliss, Eric Weiner finds himself beguiled by the Bhutanese mindset, though he can’t quite wrap his American head around it. “In a wealthy, industrialised society… we are discouraged from doing anything that isn’t productive — either monetarily or in terms of immediate pleasure,” he writes. “The Bhutanese, on the other hand, will gladly spend a day playing darts or just doing nothing.”

This is obviously the place for me. By the time you read this I will just have driven into Bhutan on a three- to four-week road trip. Weiner writes: “Driving in Bhutan is not for the meek. Hairpin turns, precipitous drop-offs (no guardrails), and a driver who firmly believes in reincarnation makes for a nerve-wracking experience. There are no atheists on Bhutan’s roads.” But I don’t care; I expect to be suffused with an ineffable bliss from the moment I cross the border. I’ll let you know when it wears off; watch this space. – Business Standard

]]> 4613 2009-10-02 03:26:40 2009-10-02 10:26:40 open open don%e2%80%99t-worry-be-happy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6693#comments wfw:commentRSS http://zikkir.com/business/6693/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6693 syndication_item_hash e8e01f5b801a1ce94e7216d7257a41ac _encloseme 1 Brandishing brands http://www.ethiopianreview.com/business/4612 Fri, 02 Oct 2009 10:27:48 +0000 http://zikkir.com/business/?p=6695 Though she has plenty of options to choose from, Anjali Chawla firmly swears by one premium brand. “Chanel,” she says without pausing for a breath, “is a brand you can pass on to your children, grandchildren, great-grandchildren.” She finds it “understated and very, very chic”. Resting in Chawla’s wardrobe, then, is an envious collection of Chanel bags, belts, jackets, accessories, even pearls and umpteen dresses that the pretty lady has collected over the years.

While she admits to having more Chanel than any other brand, Chawla’s wardrobe doesn’t give any of the premium luxury brands a miss. She rarely dresses up in Indian attire (“unless one is going for weddings and other occasions where ethnic becomes the buzzword”) and that’s a reason why her wardrobe stocks a variety of dresses, especially formal evening wear. These include long, flowing gowns from brands like Roberto Cavalli and Alexander McQueen.

“His style is so different,” Chawla comments on McQueen’s designs. The designer, by the way, having just launched his fall winter collection for season 2009-10, displays an incredible 100 per cent silk jacquard trapeze dress with funnel neck in bright red on his website (Rs 2,98,750). While most of his dresses include stripes in bold colours, there are also flowing gowns in velvet which have a snug fit. His “red ombre scarf dress,” for instance, is another hot number in red. It’s a floor-length velvet gown (Rs 1,69,750) which Chawla, we’re sure, could carry with a string of Chanel pearls (Rs 50,000).

Chawla’s style statement gives prominence to premium luxury brands. That’s a reason why it’s not unusual to find a selection of scarves, shoes (“I’m guilty of owing innumerable pairs,” she confesses), bags and belts by a host of other brands including Berkins, Hermes, Gucci to name just a few. “I can’t do without my Gucci trousers for sure,” she confesses. Though she’s sporting a complete Chanel look — she wears a belt by McQueen though — when we meet her (including trousers by Chanel), Gucci trousers, Chawla suggests, offer a myriad of options as far as cuts and styles are concerned.

Our recommendation for Chawla — if she doesn’t already have them, of course — is Gucci’s “darted garcon pants” in black/white diagonal bouclé wool and welt pockets. At Rs 48,000, Chawla could pair it well with a long sleeve jacket in the same fabric (Rs 99,250) and a long sleeve shirt in crepe-de-chene with mother-of-pearl buttons (Rs 39,250). The look, however, is incomplete without Gucci’s “pixie” platforms in black suede with 4.1-inch heels which cost Rs 57,500.

Considering Chawla, like most women, is guilty of having ample pairs of shoes, her “brand” pick — besides other well-known brands — include Giuseppe Zanotti and Christian Loubteen. Zanotti’s open-toe ankle boot in black with a bright red heel is available for Rs 38,000. – Business Standard

]]> 4612 2009-10-02 03:27:48 2009-10-02 10:27:48 open open brandishing-brands publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6695#comments wfw:commentRSS http://zikkir.com/business/6695/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6695 syndication_item_hash b8c903245a5473354747cc0d7e3955f4 _encloseme 1 V V: Getting rid of fat http://www.ethiopianreview.com/business/4611 Fri, 02 Oct 2009 10:28:40 +0000 http://zikkir.com/business/?p=6697 With the rise of creative writing schools that include the hugely popular mass communication courses, there is no end to the making of books, but of making them any better there is almost no means. Book publishing, editing and writing remain cottage industries in India in which apprenticeship in a publishing house is the only approximation to specialised training. But apprenticeships are few and editing, which is the key to all good publishing, gets passed over in the rush to produce more and more books. This goes for the print media also.

So, editing that is at least a craft and at best an art gets reduced to a simple fact-checking exercise instead of re-shaping, revising and/or re-writing, that is, purging sentences of useless words and paragraphs of useless sentences. Put another way, as Gorky advised a young writer, editing means not what you need to put in but what you can no longer take out: cut it to the bone, make it spare, frugal, hard-boiled and do it again and again as if it hasn’t been done ever before. Scott Norton’s Developmental Editing: A Handbook for Freelancers, Authors, and Publishers (Chicago University Press, $35) is yet another addition to the Chicago list that has specialised in publishing texts, beginning with the Bible of all publishing books, The Chicago Manual of Style.

Developmental Editing is a typical American DIY (Do-It-Yourself) publication, practical and down-to-earth. But before getting into its main guidelines on how to get published it is important to bear in mind that “in this postmodern age, the Author is dead, television and cinema and the Internet are the dominant media…. The Editor too is dead having been replaced by a cadre of agents, acquisitions editors, freelance copyeditors, and marketing and sales directors.” To a large extent, this scenario is pretty accurate for us too even in medium-sized firms in India where advances in print and communications technology are still a step or two behind the West.

But does this mean that the function of the editor is over and he or she has been reduced to a conduit or “connective tissue”, as Norton puts it, between the author and the publisher/accountant? Not quite. The traditional functions of editors have changed to an extent but they have not become redundant—in fact, taking on the responsibilities of acquisitions and market research has considerably enlarged them.

Here is how the system works. More than half of all books published are acquired or commissioned by editors. Developmental editors who work in professional, textbook or reference books spend much of their time doing market research, working with educational authorities, keeping abreast of curriculum changes and who’s doing what in what field. This is also true of mass-market fiction where trends are closely followed and authors commissioned to write novels according to a formula. Of course some of the top-end writers create their own stuff but almost all successful writers blow with the wind whether it is Dan Brown, or anyone else. Commissioning is the first step; go wrong here and no packaging or marketing gimmicks will bring a book to life.

Developmental editors, then, are those who are responsible for a complete turn-key job: commissioning, planning marketing strategies, packaging the product or dressing up the text and jacket, and generally keeping a tab on the progress of the book and its after-life. How this is done Norton spells out over 10 chapters, some of which are: Assessing Potential; Thesis: Finding the Hook; Exposition: Deploying the Argument; Drafting a Blueprint; Transition; Filling in the Blanks; Style: Training the Voice; and, Display: Dressing up the Text. In each of these chapters there are detailed case studies that feature a variety of nonfiction books—popular science, memoir, travel guide—and authors range from first timers to veterans, journalists and scholars. It’s all there with tentative answers to the central question that is the key to all good publishing: identify the potential reader if you have to succeed.

Therein lies the rub: the potential reader is never easy to identify. To an extent this is relatively easy for nonfiction/educational books because the market can be quantified but just about impossible for general category books where potential readers are scattered and there are few trade outlets. This is particularly true for us where the market is huge (even for the English market), is thinly spread out, and therefore, the costs of sales are high. Whether it is still worth it depends on what the publisher is left with at the end of the day.

Norton still doesn’t answer the question: What is editing? (except indirectly). It is nothing more than what Gorky advised his young writer and what Shakespeare said long before: “Simplicity, Clarity, Purity of Line.” Nothing more is required. – Business Standard

]]> 4611 2009-10-02 03:28:40 2009-10-02 10:28:40 open open v-v-getting-rid-of-fat publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6697#comments wfw:commentRSS http://zikkir.com/business/6697/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6697 syndication_item_hash cb9301335710d0d1eb7fe26d7217189a _encloseme 1 Chess #606 http://www.ethiopianreview.com/business/4610 Fri, 02 Oct 2009 10:29:45 +0000 http://zikkir.com/business/?p=6699 q

THE BILBAO GRAND SLAM turned into yet another triumph for Levon Aronyan. The Armenian GM has been on a hot streak winning the Grand Prix, the Amber, and now Bilbao. Bilbao is played to a scoring system of 3 points for a win, 1 for a draw but that would not have made a difference. Aronyan played to +4, -1, =1 while Karjakin went +1,-1, =4 and Grischuk was +2,-2,=2. Under the Bilbao system, Grischuk edged out Karjakin. Alexei Shirov was last with a dreadful -3, =3.

Spain is the epicentre of world chess — it hosts many top events and it’s not an accident that Topalov, Anand, Ivanchuk, Shirov, etc, are domiciled there. Bilbao was followed by a match in Valencia that evoked much nostalgia.

Kasparov plays Anatoly Karpov, renewing the greatest rivalry ever. In their five title matches, Kasparov eked out a 21-19 lead with 104 draws. GK won three of those matches, one was tied and the first was aborted when Karpov led 5-3.

Valencia consists of 4 rapid games followed by 8 blitz (all with increments). Kasparov started in great style, leading 2-0 after the first two rapid games. Karpov looked rusty. GK has apparently kept himself match-fit, through writing a series of high-quality books, in between spending time on the political campaign trail against Vladimir Putin.

Game 2 was consummated by a sharp sacrificial attack. In game 1, AK flagged out in an unclear position where GK had pressure. On day two, Karpov broke back with a nice win in Game 3 but Kasparov sealed another win, on time, in Game 4 The final position appeared superior for GK but much work would have had to be done.

Karpov follows through with another exhibition where he faces Anand. Kasparov has decided to step up his active involvement by training Norwegian prodigy, Magnus Carlsen. The contours of the arrangement are not clear but this is obviously a coup for Team Carlsen.

Valencia has generated so much publicity, it has drowned out another match. Zahar Efimenko plays Nigel Short in Mukachevo, Ukraine in an eight gamer at normal controls. That is tied 1-1, after three games.

The DIAGRAM, WHITE TO PLAY, (Kasparov Vs Karpov, Game 2, Valencia 2009) is one of those situations where lightning strikes out of a clear sky. Apparently this is a balanced position. Black has simplified but Nc5, Ra7, Qb8 are out of touch with the kingside.

Kasparov rattled off 22.Nf6+! gxf6 23.Qxh6 f5 24.Qg5+ Kh8 25.Qf6+ Kg8 26.Rxf5 Ne4 27.Qh4 Re8 28.Rh5 f5 (1-0). Now 29.Rh8+ Kf7 30.Qh7+ Ke6 31.Qg6+ Nf6 32.Re1+ is the most efficient. The variations are not so tough – it is more a question of realising the Q+R can break in if the pawn cover is disturbed. – Business Standard

]]> 4610 2009-10-02 03:29:45 2009-10-02 10:29:45 open open chess-606 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6699#comments wfw:commentRSS http://zikkir.com/business/6699/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6699 syndication_item_hash 287b825058640da45af9ddb3aa12b4cd _encloseme 1 Pray, we’re feasting http://www.ethiopianreview.com/business/4609 Fri, 02 Oct 2009 10:30:34 +0000 http://zikkir.com/business/?p=6701 Despite opinions to the contrary, Durga Puja isn’t an occasion for senseless gorging. The true gourmand’s responsibility is to pack in as much good eating as s/he can in this week — and that’s harder than it seems. For many, the most insistent taste memories of Puja come from the legendary pandal “bhogs” served for lunch and dinner at these places, some of which can boast of third- and fourth-generation master chefs. For others, Puja food is snack food, as Bijoli Grill, Benfish, Nizam’s and a dozen redoubtable biryani joints put up stalls that sell everything from fried fish to Mughlai paratha.

And for the last decade, restaurants have joined the Puja feeding frenzy, offering special menus for each day of the festivities. This is, even for the intrepid Bengali armed with a cast-iron, bottomless pit for a stomach, not an easy labyrinth to negotiate. Here’s a day-to-day guide to navigation.

Sasthi: Most puja pandals kick off the first public day of Durga Puja with a local Ananda Mela tradition. In Delhi’s Chittaranjan Park and Calcutta’s larger pandals, the Ananda Mela is a near-corporate affair with some of the city’s biggest Bengali sweet-and-savoury makers participating. The smaller pandals offer a far more home-style experience, with the local Mashimas bringing in home-cooked delicacies for sale. Look for the great Mughlai-style specialties and the old coffee-house/adda classics.

Aside from the jhalmuri and bhelpuri sellers and the omnipresent biryani and kabab rolls, fried fish and fried chicken chops are big on the menu. So is fish orly and kabiraji cutlets with their frills of egg. If you’re in luck, there’ll be home-made ghugni — a chickpea-and-mutton concoction in a thick sauce (with vegetarian versions) — or dimer devil (devilled eggs) and mochar chop (banana flower chops) besides an array of sweets.

Saptami: This is a good day to stick to vegetarian delights, and sample the overlooked labra. This is a classic vegetable curry, the Bengali equivalent of the Gujarati undhiyo (I say this at the risk of setting both communities at each other’s throats) and requires the skill of a master chef in terms of combining the different kinds of pumpkin, spinach and other leaves in just the right proportion. Timing is everything: a mediocre cook could end up with a messy pulp, but a great cook will stun your palate with a complexity of flavours.

Ashtami: This is a great day to take advantage of the restaurant specials. In Calcutta, Kewpie’s Kitchen runs classic and delectable menus during each day of the pujas. Tero Parban, Bhojohori Manna and 6, Ballygunge Place in Calcutta have their own set of faithful followers. In Delhi and Bombay, Oh! Calcutta chains have been running Puja buffet lunches —good value for money. I associate Ashtami with khichudi, which bears the same relationship to everyday khichdi that a Tagore poem does to doggerel. This is a day of sumptuousness — gorge on the more sinful Bengali sweetmeats — but also a day to celebrate the simple goodness of begun bhaja, perfect quarters or rounds of aubergine fried just as you sit down to eat.

Nabami: Fish rules Nabami, no question. Chital maacher muthai is a dish venerated for its taste as much as for the difficulty involved in scraping the flesh off the very bony frame of the chital fish. Unabashed fish lovers prefer the classic — and hard to get in most restaurants — fish-head curry with moong dal. If you’re wimping out, do it in some style with a smoked hilsa paturi or a prawn malai curry.

Dashami: Cauliflower curry sounds like the most boring vegetable dish on earth, but only the Sikh langars and the Bengali pandals make it as it should be —masses of cauliflower, introduced to quantities of oil and spices, and allowed to get their sizzle on. But Dashami, the final day of the pujas, is also luchi-mangsho day — puri with meat curry for north Indians. The meat curry should be kasha mangsho — only very young goats need apply to be the key ingredient for this dish — and the supply of luchis should be inexhaustible, with one cooling luchi held in reserve as a scoop for your post-meal kheer.

For those of delicate stomachs, following this five-day plan might bring other things than satiety in its wake. The hardcore Bengali would have two words for you: Isabgol, and Gelusil. Trust to this combination (and a few prayers in between meals) and all should be well. – Business Standard

]]> 4609 2009-10-02 03:30:34 2009-10-02 10:30:34 open open pray-we%e2%80%99re-feasting publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6701#comments wfw:commentRSS http://zikkir.com/business/6701/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6701 syndication_item_hash 3c451a804dd240dfe72738384560a37a _encloseme 1 Fashionable in bed http://www.ethiopianreview.com/business/4608 Fri, 02 Oct 2009 10:32:17 +0000 http://zikkir.com/business/?p=6703 Abhilasha Ojha goes shopping for bed linen and finds that the branded market is flooded with incredible options, including limited edition collections, zany motifs and quality that redefines comfort.

In an episode of Sach Ka Saamna, the desi version of Moment of Truth, anchor Rajeev Khandelwal asked his guest if he was guilty of stealing bed sheets from hotels? The guest replied in the affirmative. In fact, Yusuf Hussain, the show’s participant, also a theatre personality, from Lucknow, argued why he sneakily packed bed sheets from different hotels in his suitcase. “The bedsheets [in hotels] were so soft, so comfortable, not at all like the ones which were available in the market,” 60-year-old Hussain had said.

One can’t blame Hussain alone. Like him, many of us would steal to sink into the luxury of ultra-soft and luxurious bed linen.

My personal favourite is a bed sheet I recently purchased from Shoppers Stop. It’s a brand called Spaces and with its very pretty motif, it’s also a splendid combination of colours in dull blue and white. What makes it a complete winner, however, is how soft the cotton fabric feels every time I lie on it. And though one doesn’t know the exact thread count, I’m quite sure that it could do well in a hotel room.

If you are a bed linen junkie too, craving to stuff your wardrobe with colourful and comfortable bed linen, this festive season has a lot in store for you. Most bed linen labels are introducing their autumn-winter collection for season 2009-10. In fact, United Colors of Benetton has stepped into the segment of bed linen for the first time this season for the Indian market. Starting from Rs 1,499, the bed linen collection from UCB has some incredibly zany designs. While the shades of the linen use pale colours (almost like a blank canvas, you might say), the overall design puts emphasis on big and bold prints. So, you’ll have meadows of huge daisies, huge prints of road atlas’ as bed linen design (yes, that’s right), alphabets in cubic characters, huge ocean waves and sand dunes that are printed in rich colours. If you’re thinking it’s perfectly suited to your kid’s bedroom, you’re wrong. It can find a place in the master bedroom too.

If United Colors of Benetton promises a completely wacky look in bed linen, Maspar (another personal favourite, by the way) has come up with its Enchanting Nature collection. It’s also impossible to ignore the rich yet warm tones that the brand has introduced in its new Pot Pourri collection for Diwali 2009-10. What’s more, instead of labelling them simply as blue, brown or red, the colours have some fascinating names including red ginger, wood brown, river blue and Thai green. If the colours are sure to leave you feeling fresh, the fine embellishments of flowing designs that one finds in the range are even better. The collection, 100 per cent cotton, offers a fully coordinated bed linen collection, complete with bed sheets, pillows and cushions, bolsters, bed covers and duvet covers too. In fact, it also offers coordinated throws and rugs. The price: Rs 4,500.

Similar to Maspar’s rich colours but very different and unique in its design is the new Marigold collection from Portico. The range is fabulous, a riot of colours in reds, oranges and yellows packed in interesting gift box options. A duvet cover gift box, complete with a 108”x108” bedsheet, four pillows covers, one duvet cover (88”x96”) is available at a price of Rs 4,999. The set also includes spa products, including scented candles, a handmade soap and loofah. With 30 designs to choose from (each one offers options in blankets, duvets, bed sheets, bed covers and pillow covers and more), Portico’s new range is impressive.

We suggest, you also give brand Maishaa’s bed linen range a good look. For season 2009-10, this home furnishings brand introduces 12 different collections including Sufi, Mandarin, Riviera and Arabic, to name a few.

A new name to emerge in this segment is Rosebys, a London-based brand now available in India. For the festive season, fashion designer Varun Bahl, in fact, has been especially roped in to create designs for bedspreads, duvets, bedsheets and cushion and pillow covers. What emerges, according to Nikhil Sen, CEO, Rosebys, is contemporary design from classical motifs. Rosebys’ USP is premium quality offered at very reasonable prices. Having picked up sets of bedsheets and pillow covers from Rosebys personally — thankfully, the colour hasn’t changed after numerous washes — the quality, I can add, is excellent. It’s also very attractively priced. Bahl’s limited edition designer bed linen ensemble is available from Rs 799 (cushions with intricate embroidery) and Rs 2,999 (king-sized bedsheets with four pillowcovers).

Desi designers have been associated with bed linen for quite some time actually. If Raghavendra Rathore has partnered with Carmichael House, Sabyasachi has been associated with Bombay Dyeing to create bed linen. JJ Valaya, of course, has been bringing out home décor designs (bed linen included) under his own label. But if you were the sort of person for whom only international designer brands would do, well, you could just be lying on high-end branded names like Donna Karen, Calvin Klein and Versace who offer some incredible designs — in bed linen too.

This Diwali, invest in colour, comfort and the ultimate luxury in bed linen. – Business Standard

]]> 4608 2009-10-02 03:32:17 2009-10-02 10:32:17 open open fashionable-in-bed publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6703#comments wfw:commentRSS http://zikkir.com/business/6703/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6703 syndication_item_hash c91603e54345a551dd00e9667ae98027 _encloseme 1 Just kidding http://www.ethiopianreview.com/business/4607 Fri, 02 Oct 2009 10:33:12 +0000 http://zikkir.com/business/?p=6705 When designers Jiten & Sumir morphed into the artists T&T, many considered it a dilettante moment. But they are Indian contemporary art’s new poster boys in the West, acknowledges Kishore Singh.

A t eleven o’ clock, Jiten Thakral is still asleep though Sumir Tagra, freshly showered and clad in orange jeans, has managed to surface for our appointment. “We were working till four in the morning,” he grins away Thakral’s absence. Outside a house not dissimilar from the Punjabi baroque aesthetic they have been recreating in paintings and installations for some years now lie packing crates waiting to be shipped to different parts of the world. A sculpture of metal portraits of Punjabi migrants bleeds water as the refrigeration intended to coat them in a layer of ice fails to combat the unseasonal September heat outside.

Inside, Sellotaped on a wall, is a printout of an email: “The following works have to be packed & crated at T&T studios next week. 1. Two paintings going to Sao Paulo (one crate). 2. Two paintings going to Max Wigram, London for Frieze Art Fair (one crate). 3. Cabinet sculptures going to Mumbai (multiple).” Tagra, who most people who worked or had work at Ogilvy’s creative shop David thought — wrongly — was a colleague of Thukral’s and an employee of the agency, is insisting that the two artists, who work as the collective T&T, are this year broke because they have been working only on museum projects for Tokyo, Singapore, Brisbane and, coming up next, Sao Paolo.

At David, where they, or at least Thukral, as the legitimate employee, and Tagra, who some believed worked there despite his often long absences — he was actually doing his post-graduation from the National Institute of Design in Ahmedabad — rarely did the conventional grind of most advertising sweatshops. Instead, they did mad, maverick things like creating their own portfolios in a 1”x1” inch book, 428-pages thick, that they got the agency to sponsor, or designing its office, even an award-winning website, creating visiting cards and postcards and T-shirts, undertaking freelance assignments, were retained less for their lack of client application than their creativity which was intended to showcase the agency’s powerhouse of talent and won it hundreds of awards.

Even now, a few years after their exit from the advertising space and experimentation with design commissions, public service messaging, products, art and sculpture, it’s difficult to confine them into any one silo. Thukral, long-haired and bearded and, despite a hasty shower, still sleepy-eyed, Tagra with his spiked Peewee mohawk and goatee and smartass one-liners, could be anything: systems nerds, call centre types (they’ll hate this), illustrators — Thukral remembers being interviewed by this newspaper for a job that he got but did not take — but artists? And who ever heard of artists painting together anyway? And then under a corporate branding like T&T?

But T&T they are, making inroads around the global world of art as they address issues of migration, consumerism and an evolving Indian aesthetic, the latter based on the aspiration to flee from the land of their ancestors — Punjab, specifically — for America or Canada. T&T are both Punjabi lads though they hardly fit the stereotype with their almost unusual scrawniness and Big City sophistication, lapsing only occasionally into a giveaway accent or the “neighbourer” phrase. Their paths sometimes crossed, but it was over email that they stayed in touch, curiously enough posting their work to each other, making allowances not just for feedback but also to touch up each other’s projects. And that’s how their first assignment happened, with a Mumbai-based photographer and a Delhi-based writer, and a show at Hype Gallery in London.

“We bullshit each other a lot,” Tagra says.

“Critique,” adds Thukral.

“Sit together,” Tagra interjects.

“Bounce ideas,” agrees Thukral.

They’re like Tweedledum and Tweedledee, taking up for the other, completing each other’s sentences, picking up a thought and running with it, more spouse, or siblings, than colleagues, drinking buddies challenging themselves over absurdities, creating, after one such binge, the unlikely label Bosedk which, in a responsible newspaper such as this, can best be explained as a particularly potent, if anglicised, north Indian abuse. Having coined it for their T-shirts, they then used it as a label for their installations, alongside portraits of wannabe migrants complete with American-style bandanas pasted on Hershey’s bottles, and the logo on assembly-line merchandise, a reflection of their concern over growing consumerism, though they might have failed to convince many of the gallery footfalls to their point of view, if the question, often repeated, was any indication: “Very nice, beta, when are you going to launch these products in India?”

While their content has changed frequently, Tagra agrees that they have “an obvious language” that at least has remained constant ever since, in 2001, Wallpaper magazine picked them among 101 emerging artists from around the world to watch out for. Vector motifs, floral kitsch, obvious clues — all of it makes up the hierarchy of their paintings, a process they say they have learnt from their advertising past, and as before, they work on the imagery on computers, still altering each other’s work before agreeing on the final image, then blowing it up on a canvas to prepare it for the painting.

In a sense the transition from advertising’s Jiten & Sumir to artists T&T occurred when New Delhi gallery Nature Morte gave them space for a show of T-shirts, which they turned into an art event, and then followed it up with their first show of art. This was in 2005, and since then Thukral and Tagra, whose first painting, Skin 1, sold for Rs 80,000, have consistently moved on, despite the meltdown, to occupy a slot in the Rs 25-30 lakh bracket for a work 5’x5’ in size. It has included projects they have undertaken in the area of HIV/AIDS, creating art, installations, underwear and even flip-flops that endorse their message of safe sex, but blurs the distance between art and design. They have shown at Art Basel in Switzerland, turned regular at New York’s Bose Pacia (which has an arrangement with Nature Morte), and participated at exhibitions from Berlin, Sydney, Durban, Seoul and Milan to Vienna, Taipei, Vancouver and Shanghai.

Why this absorption with museums, I wonder.

“It’s good because museums believe in the art you have created,” says Thukral.

“And it’s good because galleries then value the work you have done,” laughs Tagra.

Response, nostalgia, escape, memories — T&T’s growing body of work reflects this. For their 2007 show at Art Basel, Adolescere Domus — Tagra says they like to use Latin names for their exhibitions; another, tellingly, was labelled Effugio — they returned to their familiar playground of Punjabi baroque, setting it in an obviously fake mis-en-scene which curator Peter Nagy describes evocatively. “Visitors,” he notes, “entered an environment where the garments on the characters in the paintings were available for sale, patterns of images traversed from canvas to printed page to tabletop, and the artists themselves adorned their audience with stickers and buttons, effectively walking their images out of the booth and into the world. To present such a plurality of aesthetics at an art fair is to comment on the increasing tendency to see art as part of the entertainment industry, the artist as manipulator of his own image as a product, and the collapse of all disciplines into a cult of celebrity.”

If it is difficult to slot T&T, it is even more so to make out if their concerns are the serious or the ludicrous. Are they laughing at or with their audience? Or is their potent wit intended to drive home a more pertinent point? Are they in it for the long term or as mere dilettantes? Is their work a monumental joke on society?

“But we are part of the society we reflect,” explains Thukral.

“We celebrate that,” agrees Tagra, “we don’t make it into a joke.”

“We are concerned about the mushrooming of new products,” chips in Thukral.

“… and decadence,”

“Corruption.”

In India, galleries are unsure about how to respond to their eclecticism, in part because T&T have shown as yet little in the country, but more because they refuse to entertain commissions for clients based on their interior requirements. “Curators come here,” Tagra gestures around the room where they work, “to select the projects they want for their curatorial works” — which, given their short life in the medium, is commendable. Within this period, their work has moved from the grammar of migration through the dilemmas of consumption to a documentation of the lack of context in the homes they build “whether in Punjab or in Gurgaon”. Back in the Punjab, the concern with migration is so strong, Thukral — a Jalandhar lad himself — says its residents often design their water tanks like airplanes, and offer toy aeroplanes to gurdwaras in the belief it will help them go abroad. And though Thukral and Tagra might mock the sloping roofs, curving balconies and ice-cream colours of their neighbourhood houses in suburban Gurgaon, but then line a cabinet installation with cloth taken from an emigree’s mother’s Punjabi suit, bringing a sentiment that, despite being mawkish, is uniquely Indian.

“It is a new aesthetic for Western eyes,” says Thukral.

“It’s rural,” agrees Tagra, “and it’s urban.”

“But it’s fresh.”

“Kitschy…”

“…sophisticated.”

And it comes with their portraits — each painting, or product, signed by their presence, looking like goblins, or appearing as silhouettes. “It’s a reason,” laughs Thukral, “that the briefs with the safe sex message did not sell” — though the slippers, signed by them, sold as “art multiples” in New York — to which Tagra pipes up to add, “Who’d want someone else’s face on their underwear?” It might not sell their lingerie but it’s created a rush for their art. Now to see whether they live up to that hype — or succumb to it. – Business Standard

]]> 4607 2009-10-02 03:33:12 2009-10-02 10:33:12 open open just-kidding publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6705#comments wfw:commentRSS http://zikkir.com/business/6705/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6705 syndication_item_hash 3964e2a938cd2ac2c38446a08fceb3c5 _encloseme 1 Chicago’s Olympic bid: An expensive proposition http://www.ethiopianreview.com/business/4683 Sat, 03 Oct 2009 04:33:22 +0000 http://zikkir.com/business/?p=6707 The Windy City would face a tough financial challenge in hosting the Olympics, experts say, but it’s well prepared with stadiums, infrastructure.

1
Chicago is spending about $100 million on its bid to host the Olympics in 2016.

With help from hometown heroes like the Obamas, Chicago is aggressively lobbying to host the 2016 Summer Olympics. But making the games profitable would not be an easy win.

Chicago is competing with Tokyo, Madrid, Spain and Rio de Janeiro in wooing the International Olympic Committee in Copenhagen. A decision is expected Friday.

Chicago 2016, the organization leading the effort to host the games, expects a cost of $3.8 billion, including a “rainy day” fund of $450 million in case of unforeseen increases.

But there’s good reason to be skeptical of that projection, said Robert Livingstone, producer of GamesBids.com and a leading expert in the Olympic selection process. Host cities routinely overrun their Olympic budgets, he said.

“It’s going to be more expensive than we think it’s going to be, because it typically is,” Livingstone said. “I think every [host] city is going to lose money. It’s not an efficient event.”

The bidding process alone is costing Chicago about $100 million, even if it doesn’t win, Livingstone noted.

An argument often made by host city advocates is that presenting the international spectacle is good for a local economy. But such “trickle-down effects,” like benefits to local businesses, are “almost impossible to measure,” Livingstone said.

“I think a lot of people look at the Olympics, and they try to justify it by how much money it adds to the economy,” said Livingstone. “[But] if you’re in this to make money and improve your economy, you’re in it for the wrong reasons.”

A Chicago 2016 spokesman, who asked not be named, stood by the $3.8 billion projection. “Our numbers are completely feasible thanks to the infrastructure already in place, the number of venues already built and the temporary nature of the majority of those we’re planning to build,” he wrote, in an e-mail.
Planes, trains and stadiums

Olympic budgets and preparation differ widely from city to city.

Athens, host of the 2004 summer games, budgeted $8.3 billion, including $5.8 billion to overhaul its infrastructure, with a new subway network, airport, roads, railway and tram system.

“It depends upon what you have to do to host the Olympics,” said Andrew Zimbalist, an economics professor at Smith College in Northhampton, Mass., who has written on the subject of sports economics. “Some cities are more equipped at day one [in terms of arenas and other facilities.] “Some cities need to build infrastructure, others don’t. Some cities need to build hotels, others don’t. Some cities have security they need to build up, others don’t.”

It also depends on what the cities want to do. While Athens focused on badly-needed infrastructure to accommodate the Olympics, Beijing spent more heavily to turn the 2008 summer games into a lavish spectacle. Beijing spent an estimated $40 billion on infrastructure and on such eye-popping venues such as the Bird’s Nest stadium, Zimbalist said.

The stadium isn’t even used for sports events anymore; it’s being converted into a shopping mall and hotel. Zimbalist said the building of such extravagances is the risk they turn into under-used “white elephants.” But he added that Beijing got what it wanted: to present itself to the world as a major player.

“What you’re trying to shoot for, realistically, is some kind of psychological benefit,” he said. “It’s the social-economic benefit of the cost, not pecuniary.”
No Bird’s Nest for Chicago

Don’t expect a Beijing-style spectacle in Chicago, said Mark Rosentraub, professor of sports management at the University of Michigan and an expert in stadium finance and construction. In Chicago, the pressure is to save money, not pull out the stops for a jaw-dropping show.

“The Chinese made facilities that they’re never going to use again, but that’s what they wanted to do,” he said. “They wanted to market [themselves]. Chicago doesn’t need to market. It’s a world-class city. It has a phenomenal reputation already. Making a profit off the Olympics would only enhance that.”

Chicago bears a closer resemblance to Atlanta, the Olympic host in 1996, and Los Angeles, the 1984 host, Rosentraub said. The three cities already have existing infrastructure and sports stadiums, he pointed out, alleviating some of the financial pressure of hosting the summer games.

“The great thing about Chicago is that it needs very little infrastructure to pull off the Olympics,” he said.

Chicago could also learn from Atlanta, which wisely re-used the housing that it built for Olympic athletes by turning it over to the Georgia Institute of Technology and Georgia State University for use as dorm housing, as well as below-market housing.

Atlanta and Los Angeles each turned a profit as Olympic hosts, and Chicago has the potential to do the same, so long as it acts wisely by using existing facilities, such as Soldier Field, so it doesn’t have to build more than one or two stadiums, according to Rosentraub.

“The key to doing the Olympics is: don’t build a lot of infrastructure that you don’t need,” Rosentraub said. “If you don’t go crazy building facilities, you can make money on the Olympics. If you don’t go crazy, it’s impossible to lose. But if you go crazy, you lose your shirt.” – CNNMoney.com

]]> 4683 2009-10-02 21:33:22 2009-10-03 04:33:22 open open chicago%e2%80%99s-olympic-bid-an-expensive-proposition publish 0 0 post syndication_item_hash 90f9abe6b6451ea1795fd806bb0882e2 syndication_permalink http://zikkir.com/business/6707 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6707/feed rss:comments http://zikkir.com/business/6707#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir _encloseme 1 Benchmark downgrades Royal Dutch Shell (RDS.A) shares from Hold to Sell http://www.ethiopianreview.com/business/4693 Sat, 03 Oct 2009 09:23:27 +0000 http://zikkir.com/business/?p=6709 This morning, Benchmark downgraded shares of Royal Dutch Shell (RDS.A) from Hold to Sell as the firm believes Wall Street EPS estimates for 2010 are too high. The firm has set a price target of $42 per share, almost twenty five percent below Thursday’s closing price.

Investors were unmoved by the downgrade, as shares of Royal Dutch Shell remained close to even this morning. – ROYAL DUTCH SHELL PLC .COM

]]> 4693 2009-10-03 02:23:27 2009-10-03 09:23:27 open open benchmark-downgrades-royal-dutch-shell-rds-a-shares-from-hold-to-sell publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6709#comments wfw:commentRSS http://zikkir.com/business/6709/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6709 syndication_item_hash 55ab3323751ea5bc01ee23e9d0083971 _encloseme 1 Oct 09 email correspondence with Shell Ethics Chief Richard Wiseman http://www.ethiopianreview.com/business/4692 Sat, 03 Oct 2009 09:26:21 +0000 http://zikkir.com/business/?p=6711 1
RICHARD WISEMAN, CHIEF ETHICS & COMPLIANCE OFFICER, ROYAL DUTCH SHELL PLC

—–Original Message—–
From: John Donovan [mailto:john@shellnews.net]
Sent: 01 October 2009 18:49
To: Wiseman, Richard RM SI-RDS-CCO
Cc: Brandjes, Michiel CM SI-LC
Subject: Leaflet Distribution at Shell Centre

Dear Mr Wiseman

I promised to let you know when we intend to recommence the distribution of leaflets at Shell Centre.

This will happen at 11am on Monday. A team of three people will hand out the leaflets. They have been instructed to do so in a friendly manner and not to cause any obstruction. There will be no shouting or disorder. No protest banners. Just leaflets. They will obey instructions from your security staff on where they can stand to hand out the leaflets on public property to people entering Shell Centre.

Initially the leaflets will be distributed for four hours per day on Monday, Thursday and Friday.

In subsequent weeks and months, distribution arrangements will be varied.

Regards
John Donovan

RESPONSE FROM RICHARD WISEMAN

From: richard.wiseman@shell.com
Date: 2 October 2009 08:47:29 BST
To: john@shellnews.net
Cc: michiel.brandjes@shell.com
Subject: RE: Leaflet Distribution at Shell Centre

Dear Mr Donovan,

Thank you for letting me know. It might be helpful if I had a copy of the leaflets you propose to distribute in the same way that you usually let us have drafts of the texts of your website postings and I’d be grateful if you would consider this.

Regards

Richard Wiseman

Chief Ethics and Compliance Officer
Royal Dutch Shell plc
Shell Centre, London SE1 7NA

REPLY FROM JOHN DONOVAN

—–Original Message—–
From: John Donovan [mailto:john@shellnews.net]
Sent: 02 October 2009 09:16
To: Wiseman, Richard RM SI-RDS-CCO
Subject: Re: Leaflet Distribution at Shell Centre

Dear Mr Wiseman

The two leaflets being distributed next week are attached. I will in future send copies in advance as requested. Shell will then have the opportunity to seek injunctions to prevent circulation if you take issue with the facts set out in the leaflets.

Regards
John Donovan

RESPONSE FROM RICHARD WISEMAN

Dear Mr Donovan

Many thanks for your swift response.

Regards
Richard Wiseman

Chief Ethics and Compliance Officer
Royal Dutch Shell plc
Shell Centre, London SE1 7NA
FIRST LEAFLET
10 YEARS ON AND NOTHINGS CHANGED

By John Donovan of royaldutchshellplc.com

A decade ago we had a team outside Shell HQ handing out leaflets every week on a regular basis.

At the time, thousands of loyal experienced Shell employees were being ruthlessly culled. Shell later paid a high price for hiring contractors to replace lost skills. Is the same short-termism being repeated now?

“Transformation” under Moody-Stuart, “Transition 2009” under Peter Voser; different buzzwords, same outcome. Staff working at the coalface treated like disposable non-entities, while greedy and ruthless executive directors pump up their obscene, bonus and stock option packed, fat cat “compensation”.

Even if caught deceiving financial regulators and Shell investors, as the reserves fraudster Sir Philip Watts was, they are assured of a huge payoff ($18.5 million in his case) and are indemnified against all potential legal costs.

Interesting to note that the Form 20F declarations to the SEC highlighted Shell’s claimed General Business Principles… honesty, integrity, transparency, respect for people – all the PR crap designed to fool investors and Shell suppliers. What we have described as a confidence tricksters charter. The declared proven oil and gas reserves were, like Shell’s ethical code, illusionary.

Returning to the subject of self-aggrandisement, this is what former Shell exec Paddy Briggs said in May:

“What characterises Shell head honchos in recent times is that it is all about self. Power, position, perks and obscenely inflated bonuses and rewards – and to hell with the business or the tradition or the history of this once great company and once respected brand. And to hell with the stakeholders as well. Suppliers, Partners, local communities, employees, pensioners and society at large are the disposable small fry in the selfish and self-centered world of Van Der Veer, Cook, Brinded and the rest.”

The latest “head honcho” has added to the anxiety of some Shell employees by requiring them to reapply for their jobs. Not as bad as water boarding, but still a form of torture to those of a nervous disposition. Voser describes the insult as “an interesting exercise because we could really select those we are keen on.”

It seems a cruel undeserved imposition by the nice Mr Voser, bearing in mind that the overwhelming majority of Shell people are loyal, decent, and hard working.

Our beef is still with the hypocrites at the very top, such as Malcolm Brinded, who pay lip service to the SGBP while supporting and encouraging IP theft, a corrupted tender for a major contract, and the notorious “TFA” safety culture on North Sea Platforms which cost the lives of offshore workers.

In future leaflets, we will provide information about these and other, even more sinister Shell misdeeds.

Published by John Donovan of royaldutchshellplc.com
Email address for leaked Shell docs: john@shellnews.net
SECOND LEAFLET
RIGGED SHELL CONTRACT TENDER

By John Donovan of royaldutchshellplc.com

Although this story relates to events that occurred years ago, it reveals the hypocrisy of two people at the top of Shell, Malcolm Brinded and Richard Wiseman.

Both have made speeches proclaiming the importance of Shell’s General Business Principles pledging honesty, integrity and transparency in all of Shell’s dealings.

Wiseman stated in an anti-corruption speech:

“A reputation for integrity is a priceless asset which can vanish or be severely tarnished by a single error of judgment. Shell Core Values: Honesty, Integrity and Respect for People underpin everything we do and are the foundation of our Shell General Business Principles.”

Our dealings with Brinded and Wiseman arose from a series of High Court actions we brought against Shell UK. They resulted from the activities of a dishonest Shell manager, AJL, intent on setting up his own business inside Shell to exploit his position as National Promotions manager.

AJL cheated many companies who trusted Shell, perhaps lulled by the claimed code of business ethics. He ruthlessly drew them into a Machiavellian “SMART” contract tender plot masterminded by him, involving a conspiracy of Shell managers. Deception was used to steal intellectual property from companies and delay disclosure to Shell’s rivals.

AJL set out his unscrupulous plans in documents, some in his own handwriting. He funnelled confidential information gained from unsuspecting companies under false pretences, to an agency with whom he had a special relationship.

His mind set was evident from an incriminating email relating to the same project that he circulated to Shell colleagues.

Extract: “NB: To answer your last point: My note of 25/10 is the official position, my note of 9/9 expressed a personal and pragmatic view of how to handle the problem – it is in fact illegal and is certainly unofficial, and if we were discovered then we will enforce the official legal position – which is that all volume must currently be rewarded with promotional points”.

The SMART contract was miraculously awarded to the agency AJL had a special relationship with. They had not even run in the contract race. AJL had a close private relationship with its senior directors. His diaries show that he also had an offshore bank account in the Channel Islands (Jersey) into which undisclosed payments were made.

As far as we could tell, all confidential ideas disclosed to AJL and subsequently adopted by Shell were channelled to this same favoured agency. This included a series of proposals we disclosed to AJL in strictest confidence.

Never guessing that his hand-written diary entries would be exposed to scrutiny in a High Court case, AJL made entries which revealed that he was a disgruntled employee and was intent to “Set up personal business while @ Shell 35 yrs = exit date.” It was his apparent objective to exploit his position to create enough personal wealth to exit Shell at the age of 35.

Despite being aware of the extraordinary background evidence, Shell’s most senior management, including Malcolm Brinded and Wiseman, gave their unstinting support to AJL even after his treacherous behaviour was exposed.

Both of these senior Shell people gave higher priority to a thoroughly dishonest Shell manager who masterminded a corrupted tender process, than to the Shell code of business ethics, the Statement of General Business Principles.

Published by John Donovan of royaldutchshellplc.com
Email address for leaked Shell docs: john@shellnews.net

]]> 4692 2009-10-03 02:26:21 2009-10-03 09:26:21 open open oct-09-email-correspondence-with-shell-ethics-chief-richard-wiseman publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6711#comments wfw:commentRSS http://zikkir.com/business/6711/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6711 syndication_item_hash c4805c0ff83c6114f7112c6f504b0844 _encloseme 1 Tom Botts: one of the men bringing Shell to its knees http://www.ethiopianreview.com/business/4691 Sat, 03 Oct 2009 09:27:35 +0000 http://zikkir.com/business/?p=6713 ….. and so the good news (for other IOCs) continues. BP announces the 19th deep water hit in deep water Angola. Where is the Shell name associated with adding reserves from real exploration and appreciating material volumes from real petroleum engineering? It would make such a refreshing change from the association with scandal – real or imagined.

The core issue is touched on by ex-insider in his observations on Botts. He is typical of the men in charge now. It’s all talk (US inspired “MBA B/S” which is bringing Shell to its knees. He is the one who announced the 25 mln pound global centre to be built at Tullos, Aberdeen. He was the one who talked up the mythical “yet to be produced” 25 bln barrels from the North Sea at Offshore Europe in 2007.

The first vanished as quickly as it came, the second lives on as a silly pipe dream of those (like Botts) who confuse hydrocarbon molecules in the subsurface with “reserves”. In addition, he has bequeathed a legacy of over promoted yesmen to Shell whilst causing competent staff to resign in disgust. He was one of the worst “my way or the high way” types (and there is a lot of competition for the title “worst”) ever to have been visited on the company. – ROYAL DUTCH SHELL PLC .COM

]]> 4691 2009-10-03 02:27:35 2009-10-03 09:27:35 open open tom-botts-one-of-the-men-bringing-shell-to-its-knees publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6713#comments wfw:commentRSS http://zikkir.com/business/6713/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6713 syndication_item_hash f2de6792de170105ab2252506a2e1901 _encloseme 1 East German brands thrive 20 years after end of Communism http://www.ethiopianreview.com/business/4690 Sat, 03 Oct 2009 09:31:12 +0000 http://zikkir.com/business/?p=6715 1
True or not, East German goods had a bad reputation for quality and styling

East German goods had a reputation for shoddy quality and gruesome styling, even if that wasn’t always the case. Twenty years after the collapse of the Communist regime, East German brands are once again thriving.

To see what life was like as a consumer in the former East Germany, the best place to start is at a museum. At the DDR Museum in the center of Berlin, Stefan Wolle points to a cabinet filled with packages of coffee and sugar covered with simple labeling.

“We didn’t have marketing,” Wolle, who serves as chief historian for the museum, said. “But the quality was generally better than people said later [after reunification].”

In the years immediately following German reunification in 1990, over 14,000 East German companies were privatized and as many as four million East German workers lost their jobs. Even companies that made well-respected products were swallowed up by the tide of Western goods that soon flooded into what are now known as the “new federal states” in eastern Germany.

“The good items from quality East German brands sat on the shelves and weren’t sold,” Nils Busch-Petersen, the head of Berlin’s retail association said. “People’s consumer preferences changed literally overnight.”

Polyester and Trabants

1
The Trabant came to symbolize life for consumers in East Germany: scarce and small

East Germans, who had long had access to West German television and could see, but not sample, western consumer goods, associated those products with a standard of living that had been denied to them behind the Berlin Wall.

There were plenty of products that consumers had good reason to shun, from the cramped, exhaust-spewing Trabant cars East Germans had to wait a dozen or more years to buy or the polyester clothes that were a staple of East German fashion due to a shortage of cotton.

“I wouldn’t really want to have any of the old East German chocolate again,” laughed Busch-Petersen, a lifelong East Berliner.

But at some point in the mid-1990s, things began to change and East Germans rediscovered their love of the products they had grown up with. Although some critics called the trend “Ostalgie” and accused East Germans of wanting to turn back the clock and return to Communism, Busch-Petersen said the charges were unfounded.

“First, they recognized, that emperor has no clothes, that we also cook with water and that many products really were comparable,” Busch-Petersen told Deutsche Welle.

“Second, people realized there was a relationship between the quality of their lives and their consumer preferences,” he continued. “They’d go buy a different washing powder and suddenly the wash powder factory around the corner was about to close because no one would buy the old East German stuff anymore.”

An East German care package

Indeed, East German washing powder is still available and can be found in an entire store full of other goods with East German origins in a store just a few meters from Berlin’s Alexanderplatz.

1
Although East German goods weren’t flashy, many East Germans say they lasted forever

Known as Ostpaket, the store’s name is a play on words and recalls the days when Germany was divided. Families living in the West could send their eastern relatives so-called Westpaket, care packages filled with clothes, western foods and other items – with the East German government collecting a share of the sale of each box.

The store is one of dozens across the former East Germany that caters to East Germans who are looking for the goods they grew up with. Inside Ostpaket, owner Bianca Schaeler said the East German goods were competitive with western rivals on both price and quality.

Pointing to a shelf full of various flavors of the East German coffee brand Rondo, she said product development hasn’t stopped since the Wall fell and the company has been busy tweaking its offerings to find new consumers.

Many Germans from the “new federal states” as East Germany is now known, make Rondo and fellow East German coffee brand Mocha Fix Gold their brew of choice, Schaeler said the brands have become popular in western Germany, too, thanks to discount chains which aggressively push the labels as a cheap quality substitute for Jacobs and other big German coffees.

A sparkling success

Perhaps the most successful brand to have survived Communism and thrive since then is Germany’s biggest sparkling wine brand, Rotkaeppchen, which means Red Riding Hood. The winery, based in the state of Saxony-Anhalt, is over 150 years old and was expropriated by the East German regime after World War Two.

3
One of the most successful East German brands is Rottkaeppchen sparkling wine

After reunification, the company was privatized and has thrived since then, selling nearly 140 million bottles of bubbly last year and bringing in revenues of over 700 million euros. In 2002, Rotkaeppchen even managed to buy one of its biggest rivals, the West German Mumm winery, which has given Rotkaeppchen a lock on about 40 percent of the German sparkling wine market.

That’s given Rotkaeppchen access to more premium markets for its wares, a strategy other East German brands have tried as well, running in the face of long-held stereotypes of poor quality.

Communist footwear goes high-end

Another company that successfully tried that tactic is Zeha, a shoe company that was once the Adidas of East Germany. Founded in 1897 in Thuringia, it become the only sport shoe maker in East Germany after World War Two and supplied most of the country’s sports teams and also the Soviet national soccer team but after reunification, Zeha foundered.

s
Due to a shortage of cotton, many East German fashions were made with polyester

“All the people were keen to wear Western brands, Adidas and Nike, and on the other hand they lost their sport market as well, so all of a sudden they lost everything they had and needed to close down,” said Torsten Heine, who, along with a friend, bought the rights to the name and re-founded the brand a few years ago.

The shoes are modeled on old Zeha models, including soccer boots and track shoes and combine retro design with high quality materials, such as hand-stitched Italian leather. Prices start around 100 euros and climb much higher.

Although Zehas are no longer a shoe for the masses – or for athletes – Heine says that’s beside the point, the brand captures the mystique of the era.

“I always had a pair, and it was forbidden to wear them in your spare time because it was difficult to get a pair, but we did anyway because it was cool,” Heine told Deutsche Welle.

The brand has taken off in fashion circles and hip shoe stores worldwide stock Zehas, including boutiques in New York and Tokyo. But perhaps Zeha’s biggest coup came at the end of July when it opened its newest store in Berlin.

The store sits on the Ku’damm, West Berlin’s most famous shopping street and throughout the Cold War and the division of the city and the country it served as a showcase for unbridled consumption. Twenty years after the fall of the Berlin Wall, an East German brand is being treated as a luxury item. – DW-WORLD.DE

]]> 4690 2009-10-03 02:31:12 2009-10-03 09:31:12 open open east-german-brands-thrive-20-years-after-end-of-communism publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6715#comments wfw:commentRSS http://zikkir.com/business/6715/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6715 syndication_item_hash dae40cf3c2637b2cf948f3a75e3b5438 _encloseme 1 IMF and World Bank: Crisis not over yet http://www.ethiopianreview.com/business/4689 Sat, 03 Oct 2009 09:33:01 +0000 http://zikkir.com/business/?p=6717 1
IMF head Dominique Strauss-Kahn warned about rising unemployment

The heads of the IMF and the World Bank are warning that the global financial crisis is far from over. Rising unemployment remains a major threat to a full recovery of the world economy.

Although the global economy appears to recovering from its deepest recession in over 60 years, the heads of the world’s two most important international financial institutions warned politicians and financial markets Friday against complacency.

“The fact that growth is coming back is the first good news, but we still will contemplate rising unemployment for months and months. And of course it casts a long shadow over the recovery,” said International Monetary Fund president Dominique Strauss-Kahn at an annual meeting of the IMF and the World Bank in Istanbul.

The IMF said the world economy had pulled out of recession, according the Fund’s semi-annual World Economic Outlook released on Thursday. But it projected unemployment would reach more than 10 per cent in the United States in 2010 and climb to nearly 12 per cent in the Euro area by 2011.

One of the IMF’s nightmare scenarios is that governments and central banks could put an early end to their joint efforts fighting the crisis, hampering a recovery before it can become self-sustaining.

But Straus-Kahn also stressed that the recent recession had provided the international community with an historic opportunity to reshape the global economic and financial framework under the umbrella of the G-20 group of nations.

A new global economic order

3
World Bank President Robert Zoellick said poor nations need relief

World Bank President Robert Zoellick also predicted a rough ride for the global economy in the years to come – especially for poorer countries and said it was too early to declare success in the world’s struggle to contain the economic crisis.

“2009 will continue to be a difficult year. And 2010, when much of the stimulus action will run out, remains a highly uncertain year,” Zoellick said.

He remained extremely worried about the aftermath of the crisis, which began last September with the collapse of US investment bank Lehman Brothers. Without financial assistance by the international community Africa, an innocent victim of the crisis, will not be able to recover.

Zoellick also warned that his institution could run out of resources by the end of 2011 and he is lobbying for more support from wealthier nations to help developing countries boost domestic demand in coming years. The World Bank has nearly tripled its lending to $33 billion (47.9 billion euros) in 2009 as the world plunged into the deepest recession in seven decades.

By contrast the IMF, which traditionally caters to the financial needs of emerging market countries and industrialized nations, has seen its lending resources tripled to $750 billion by the leaders of the G-20 group of industrial and developing states.

Many emerging market countries, which are already leading the recovery, are poised to become major drivers of world growth in the future. According to Zoellick the reweighting of the world economy is a positive development.

“A multipolar economy, less reliant on the US consumer, will be a more stable global economy,” Zoellick said. – DW-WORLD.DE

]]> 4689 2009-10-03 02:33:01 2009-10-03 09:33:01 open open imf-and-world-bank-crisis-not-over-yet publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6717#comments wfw:commentRSS http://zikkir.com/business/6717/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6717 syndication_item_hash 00e343e73654940927ad13d29424ca57 _encloseme 1 Three Fleet veterans in BofA search panel http://www.ethiopianreview.com/business/4688 Sat, 03 Oct 2009 09:37:19 +0000 http://zikkir.com/business/?p=6719 Bank of America on Friday set up a six-person committee, with a distinctly New England flavour, to identify a new chief executive. Three members come from Fleet Financial Group, the Boston bank acquired by BofA in 2004.

Their heavy representation on the special committee to select a replacement for Ken Lewis – who said on Wednesday that he would retire at year’s end – could prove to be an advantage for one internal candidate, Brian Moynihan, a former Fleet executive who heads up BofA’s consumer banking business.

The board of the Charlotte, North Carolina, bank has been almost entirely reconstituted since shareholders voted last April to strip the title of chairman from Mr Lewis. The bulk of the board is made up of new arrivals with experience in the banking industry but little familiarity with any of the internal candidates.

At a teleconference on Friday, BofA’s board elected five directors, along with chairman Walter Massey, to manage the chief executive selection process. Those directors include Chad Gifford, Thomas Ryan and Thomas May, all of whom moved from Fleet’s board to the BofA board in 2004.

The two other members of the committee are Charles Holliday, former chief executive of DuPont, and Donald Powell, former chairman of the Federal Deposit Insurance Corporation.

Mr Massey and the former Fleet directors are among the few holdovers from the old BofA board, which was seen by federal regulators as being too beholden to the bank’s North Carolina management. Because of that, the question of regional cliques at the bank will attract scrutiny.

In August, Mr Lewis shuffled BofA’s top management team, replacing Liam McGee, who had headed up consumer banking, with Mr Moynihan. As part of that shake-up, Mr Lewis hired Sallie Krawcheck, a former Citigroup executive, to run the bank’s global investment and wealth management business, which includes Merrill Lynch’s “thundering herd” of 15,000 financial advisers.

At the time, Mr Lewis told the board that he planned to stay on until the end of 2010, which would allow Ms Krawcheck, Mr Moynihan and other internal candidates to demonstrate their abilities to the new board.

That plan was thrown out on Wednesday, when Mr Lewis surprised the board by announcing his intention of stepping down at year end, before the internal horse-race had run its course. – FT.com

]]> 4688 2009-10-03 02:37:19 2009-10-03 09:37:19 open open three-fleet-veterans-in-bofa-search-panel publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6719#comments wfw:commentRSS http://zikkir.com/business/6719/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6719 syndication_item_hash 9652e4e9774428315a3ed596bda27f85 _encloseme 1 Shell Executives Accuse Oil-Covered Otter Of Playing It Up http://www.ethiopianreview.com/business/4687 Sat, 03 Oct 2009 09:42:08 +0000 http://zikkir.com/business/?p=6722 q
The otter, milking it for every last ounce of sympathy.

Executives from the Shell Oil Company blasted a floundering, oil-covered sea otter Monday, accusing the small aquatic mammal of grossly exaggerating the effects of last week’s hazardous petroleum spill.

According to Shell president Marvin Odum, the otter has been putting on “quite a show” in front of rescue workers and clean-up crews, and is making the 860,000-gallon, three-mile-wide toxic slick seem like a much bigger deal than it actually is.

“He’s fine,” said Odum, referring to the 40-pound sea creature, who was found washed ashore and appeared to be suffering from anaphylactic shock. “Trust me, before all of the cameras and reporters showed up, our little buddy here was having no problem at all cleaning himself off. Now, all of a sudden, it’s severe spastic convulsions this and complete kidney failure that.”

“Seriously, come on,” the Shell executive continued. “Talk about laying it on thick.”

Odum, who was alerted to the massive petroleum spill early Monday morning, claimed that the attention-seeking otter was not only overdoing it with his frantic and anguished squealing, but that his habit of gasping desperately for oxygen was “melodramatic.”

In addition, Odum claimed that the otter’s rapidly fluctuating body temperature and growing heart palpitations were nothing more than a sad attempt to curry favor with Coast Guard officials, Greenpeace volunteers, and anybody else not smart enough to see right through his “little ploy.”

1
Shell executives were disgusted by the flamboyant, over-the-top act put on by contaminated wildlife Monday.

“Give me a break,” Odum said as rescue crews tried to remove hazardous waste from the mammal’s pelt. “Clearly, this otter has some weird, personal vendetta against Shell and large corporations in general, and wants everyone to cry at his pathetic sob story.”

“Just look at him out there,” Odum added while volunteers tried to keep the sea creature from losing consciousness. “The sick bastard’s loving every minute of this.”

Odum also downplayed claims by rescue workers that the otter may not be able to handle the stress of the clean-off process, saying that the animal is “acting ridiculous” and is just doing an impression of what he thinks an otter affected by a massive oil spill is supposed to act like.

“The extreme shivering, the wheezing, the prolonged dehydration, it’s all part of the same gaudy burlesque,” Shell CEO Peter Voser said. “It’s simple: The otter gets some oil on his body, and he thinks that gives him carte blanche to play the victim. Don’t you people get it? This is exactly what he wants. You’re all playing right into his twisted little game.”

Voser even called into question the otter’s mental stability, citing the sea pup’s early attempts to drink the highly contaminated water around him as an example of just how far the publicity-hungry mammal was willing to go to make the Shell Oil Company look like “the bad guy.”

On Saturday, Shell chairman Jorma J. Ollila issued a statement accusing the sea mammal of being a master manipulator, and said that what the otter really needs to do is grow up.

Ollila went on to praise a number of petroleum-soaked seals, pelicans, and sea turtles in the contaminated area, commending them for remaining completely still and silent, and not “making a big production” out of the environmental disaster when rescue and camera crews arrived at the scene.

The one-page document, however, focused largely on the single otter, who as of press time was in critical condition.

“Rescue crews have to stop coddling him and giving him everything he wants,” Ollila said. “Because if they don’t, other otters are just going to pull the exact same crap the next time one of our tankers ruptures and we spill crude oil everywhere.” – ROYAL DUTCH SHELL PLC .COM

]]> 4687 2009-10-03 02:42:08 2009-10-03 09:42:08 open open shell-executives-accuse-oil-covered-otter-of-playing-it-up publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6722#comments wfw:commentRSS http://zikkir.com/business/6722/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6722 syndication_item_hash aa8fd996541c6f0ad0e1590fb136ae11 _encloseme 1 Rally in ‘toxic’ securities set to boost banks http://www.ethiopianreview.com/business/4686 Sat, 03 Oct 2009 09:42:59 +0000 http://zikkir.com/business/?p=6721 The recent rally in the markets for “toxic” securities could deliver a significant boost to US banks’ third-quarter earnings if financial groups decide to book accounting gains on assets that caused them billions of dollars in losses during the crisis.

Wall Street executives and analysts say the significant rise in the price of mortgage-backed securities and other once-battered debt offers banks the first meaningful chance to “write up” some of the value of these distressed assets.

In the last three months, the Markit ABX index, which tracks securities backed by home loans such as subprime mortgages issued to borrowers with weak credit, has gained more than 30 per cent, as investors rediscovered their risk appetite and the US government flooded the debt markets with liquidity.

The extent of the write-ups is difficult to predict because of banks’ complex balance sheets and uneven use of accounting rules, but some experts believe the rallying credit markets could pave the way for billions of dollars in accounting gains.

A partial reversal of the $1,000bn-plus in writedowns of securities suffered by the financial system during the crisis would strengthen bankers’ arguments that the industry is recovering its health as the global economy and capital markets improve. In addition to the writedowns, banks around the world have had to absorb $600bn of actual losses on soured loans.

Senior US bankers say the size of the write-ups to be revealed in the third quarter, which ends on Wednesday, will depend on how aggressively financial institutions take advantage of the rallying credit markets.

Some executives believe that auditors and boards will advise banks to take a cautious stance. They point out the market for toxic assets has been fairly thin, suggesting that the price increases could be short-lived – a reversal that would force banks to take further write-downs.

“From an accounting point of view the firms have no choice but to mark up positions if an active market develops. The question is: ‘what is an active market?’” a banking analyst said. “Chief financial officers will be very reluctant to mark up the assets based on simply a few trades.”

Bankers say many institutions, especially weaker ones, have sold their bad assets as prices have risen, reducing the scope for write-ups, or have hedges on those positions, making it more difficult and expensive to book a gain.

Even the riskiest kinds of bonds have rallied strongly in recent months, as investors have scrambled to find higher-yielding assets to boost returns on their portfolios.

In addition, the imminent launch of US government-backed investment funds targeting assets hit most by the financial crisis such as securities backed by residential and commercial mortgages have also pumped up the rally in these distressed securities. – FT.com

]]> 4686 2009-10-03 02:42:59 2009-10-03 09:42:59 open open rally-in-%e2%80%98toxic%e2%80%99-securities-set-to-boost-banks publish 0 0 post syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6721/feed rss:comments http://zikkir.com/business/6721#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash a4eced467adc2b53724ba99a7d549eb6 syndication_permalink http://zikkir.com/business/6721 _encloseme 1 Amravati faces the mother of all battles http://www.ethiopianreview.com/business/4685 Sat, 03 Oct 2009 09:43:59 +0000 http://zikkir.com/business/?p=6725 President Pratibha Patil’s son is fighting on a Congress ticket against the powerful two-term sitting MLA and Maharashtra finance minister Sunil Deshmukh, who has quit the party to contest as an independent.

A R Rahman made it a part of his Oscar awards acceptance speech. But not many imagined that the politics of Amravati would revolve around Salim-Javed’s immortal dialogue in the Hindi blockbuster Deewar: “Mere paas maa hai!”

Certainly not Sunil Deshmukh, the sitting Congress MLA who has represented the constituency for two consecutive terms, who was minister of state for finance in the Ashok Chavan cabinet, was the guardian minister of the city and the man who wrested Amravati from the BJP in 1999 after Pratibha Patil’s husband Devisingh Patil forfeited his deposit in the previous election.

At a well-attended street corner meeting on Thursday night at ITI Colony park here, Deshmukh used all his ammunition against one man — Rajendra Shekhawat, President Pratibha Patil’s son and the official Congress candidate for Amravati. Deshmukh is now an independent, with the television as his election symbol and it is Congress versus Congress in this epic electoral battle in the Maharashtra Assembly elections.

And if Deshmukh is the constituency’s beloved “Sunilbhau”, his opponent is the voters’ charming “Raosaheb”. Both talk about the need for new industry in the region. Both commit themselves to creating job opportunities and the “all-round development” of the city. Their common target is youth and each candidate claims that if Amravati has seen any development in recent times, it is only because of him.

“I have brought new trains to Amravati. I am actively pursuing the proposal for an airport for this region. I’ll ensure the development so far is doubled. I’ll wipe out all problems of the Muslims and the poor people,” the President’s son says to his audience at a joint rally of the Congress and Nationalist Congress Party at Badnera.

“A bunch of lies,” Deshmukh shouts, “Pratibha Patil and none of her family members have ever done anything for Amravati. It was I who fought for the local railway station. I built the flyovers. If anyone can prove that Pratibhatai has done a single piece of work for this place, I’ll quit the race.”

Local Congressmen say, the Deshmukh versus Patil turf war turned ugly in 2004 when Rajendra Shekhawat was first denied a ticket. In 2007, during the Amravati municipal corporation elections Deshmukh pushed hard to deny Patil’s camp even a single ticket. Out of 83 seats from the region in the 288-member Assembly, Patil had sought 17 for her followers. Deshmukh didn’t agree. Patil finally came down to just three seats. Deshmukh shot down even that. Then Maharashtra chief minister Vilasrao Deshmukh (now Union Minister) famously said then: “Satte pude shahanpan chalat nahi” (nothing works in front of power).”

That was before Pratibha Patil moved from Jaipur (where she was Rajasthan Governor) to Rashtrapati Bhavan . All the Congress and NCP big guns are now batting for the President’s son. Traders’ delegations are meeting Shekhawat to offer support. The rebel, on the other hand, is banking on loyal municipal councillors.

Although the BJP has fielded its candidate, the local Shiv Sena councilor Pradip Bajjal attends Deshmukh’s meeting to say, “This is a battle between justice and injustice.”

NCP’s district president Vilas Ingole (a Maratha) is also seen rallying in the rebel camp. “The Marathas are entirely with him, while the Hindi-speaking population is likely to support Raosaheb,” says Baburao Belsare, another NCP activist. Both camps are eyeing the crucial 70,000 plus Muslim votes in this mega-prestige fight.

Meanwhile, Deshmukh has coined a counter slogan to combat the “mere paas maa hai card: “Mere pass maai baap janta hai!” – Business Standard

]]> 4685 2009-10-03 02:43:59 2009-10-03 09:43:59 open open amravati-faces-the-mother-of-all-battles publish 0 0 post syndication_item_hash fa57ab8b0b219b136bbe999693e92e6c syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_permalink http://zikkir.com/business/6725 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6725/feed rss:comments http://zikkir.com/business/6725#comments _encloseme 1 Stanchart, RBS talks collapse on valuation http://www.ethiopianreview.com/business/4684 Sat, 03 Oct 2009 09:44:53 +0000 http://zikkir.com/business/?p=6727 Negotiations between Standard Chartered Bank and the Edinburgh-based Royal Bank of Scotland (RBS) over a proposed sale of the latter’s assets in India, China and Malaysia to the former have collapsed.

Standard Chartered pulled out of the negotiations over valuation issues, according to sources. They say it was willing to pay up to $250 million, a figure that apparently fell far short of RBS’ s expectations.

Standard Chartered and RBS had entered into an exclusivity agreement on the negotiations for sale of assets in the three countries. RBS has 30 branches in India and over 10,000 employees.

While the RBS spokesperson could not be contacted, a StanChart spokesperson in London said the bank would not want to in comment on any specific case. A spokesperson here said, “We do not comment on market speculation.”

The sources said RBS might now split the asset sale further and sell Indian operations separately, instead of clubbing these with China and Malaysia. RBS had earlier sold its retail and commercial banking operations in Taiwan and Indonesia to ANZ.

The divestments are part of RBS Chief Executive Stephen Hester’s efforts to shed what the bank calls its non-core assets. Hester had in February laid out plans to shrink the bank and focus on core strengths.

Without the non-core assets, RBS would be an attractive turnaround story and return to a sustainable return on equity due to its market leading businesses in large markets, Hester had said. – Business Standard

]]> 4684 2009-10-03 02:44:53 2009-10-03 09:44:53 open open stanchart-rbs-talks-collapse-on-valuation publish 0 0 post syndication_item_hash f6c3b592ba62178d7031b3c087b7a73c syndication_permalink http://zikkir.com/business/6727 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6727/feed rss:comments http://zikkir.com/business/6727#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir _encloseme 1 A for effort, Z for intent http://www.ethiopianreview.com/business/4718 Sat, 03 Oct 2009 09:56:26 +0000 http://zikkir.com/business/?p=6739 A ncient Indians discovered the Zero, but modern, cyber-savvy Indians everywhere are discovering the Zed. That’s Rajan Zed, a Nevada-based Indo-American statesman who modestly refers to himself as an “acclaimed Hindu spokesperson” in an endless series of press releases that are slowing down the Internet, or at least my home connection.

Email may have lost some of its urgency in the age of Facebook and Twitter, but there’s nothing I look forward to more these days than the newest pearls of wisdom from Mr Zed’s public-relations department. A Gmail search reveals the presence of no fewer than 82 such mails in my Inbox, with such headlines as “Hindus laud Hollywood star Thomas Jane for seeing the light in India’s value system”, “Tantra is not just sex, upset Hindus tell Hollywood” and “German diva Claudia Ciesla carries Lord Ganesha for good luck”.

Sanskrit tattoos are catching on in the West? Disney is bringing heroes from Indian mythology to the big screen? Naked yoga is turning into a fashion statement? Zed has something to say about all of this. He seems particularly interested in pretty women: Julia Roberts’ recent arrival in India for the shooting of Eat, Pray, Love has inspired a barrage of statements. In his latest, Zed urges Roberts to take up a “deeper study of Hinduism”.

You get the picture. The pattern here is that Mr Zed keeps a very close watch on the doings of Western celebrities and then finds that he is either deeply upset or deeply gratified by actions that in some way touch on “Hindu culture”. When an international filmmaker decides to portray something out of Indian mythology, he jumps in with the warning that “the final product should be the true depiction of the scripture and not a fantasized version”. I’m unsure what exactly he means by “true depiction”, but I suspect he may be thinking of the cardboard soap-opera TV versions featuring actors with Colgate smiles and arrows that assail each other in the style of Diwali firecrackers.

Now, being offended in itself is not a problem. The issue is that Mr Zed seems to believe that he speaks for Hindus of all colours and stripes, everywhere. Nearly each of his press releases includes dramatic sentences like “Hindus are worried”. Amusingly, some copy-editors take everything he says at face value and print the stuff verbatim. As Prem Panicker acerbically puts it on his blog (http://tinyurl.com/l9au2n), “A request to headline writers: ‘Rajan Zed asks for Best Bollywood Movie Oscar’ is correct. NOT ‘Hindus ask for Best Bollywood Movie Oscar’. There is a difference. Rajan Zed is a Hindu. Singular. He is not vast; he does not, to channel John Donne, contain multitudes.”

The stronger responses include one by the US website Film School Rejects (http://tinyurl.com/o92zyq), which refers to

Mr Zed as “the Indian version of Jerry Falwell”. You can’t get much more insulting than that.

Or can you? “It looks like there is a self-proclaimed pope-in-the-making for Hindus in America,” says the Just Jo blog (http://tinyurl.com/4eofkc), which is a scary thought indeed when you consider the vast number of fanatical NRIs lurking on websites like Rediff — all probably ready to sign up as Zed’s acolytes. It’s ironic too, for the last thing a religion like Hinduism needs is a Pope. As one commenter puts it, “Hindu dharma is all-inclusive. It is a way of life. This charlatan is defiling the name of Hindus and Indians!”

“Thankfully,” says a Sepia Mutiny (http://tinyurl.com/mjgsl7) poster, “Rajan Zed doesn’t get to issue fatwas. Anyway, I have washed my sins in the Ganges last week, and can satiate my tamasik (non-vegetarian) wanderlust free of guilt for another year.” – Business Standard

]]> 4718 2009-10-03 02:56:26 2009-10-03 09:56:26 open open a-for-effort-z-for-intent publish 0 0 post _encloseme 1 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6739#comments wfw:commentRSS http://zikkir.com/business/6739/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6739 syndication_item_hash 08dde715def8ad1dee424678f50c6219 No more poor boy http://www.ethiopianreview.com/business/4717 Sat, 03 Oct 2009 09:57:29 +0000 http://zikkir.com/business/?p=6741 Olympian Vijender Kumar has his eyes set on a gold in London, but is basking in the limelight till then.

I am just a poor boy, though my story’s seldom told/ I’ve squandered my resistance for a pocket full of mumbles/ Such are promises, all lies and jest/ Till the man hears what he wants to hear and disregards the rest

Perhaps it is just a coincidence that the cult classic The Boxer by Simon & Garfunkel is playing on the iPod as I drive across town to Gurgaon to meet Vijender Kumar, Olympic bronze medallist and toast of the town not for his latest win at the World Boxing Championships in Rome alone, but because everyone and everything from celebrities to endorsements are wooing the 23-year-old, formerly from Bhiwani and now part of a national celebrity consciousness. That he’s easy on the eye and has an easygoing charm doesn’t hurt his image either, nor is he easily disconcerted by what the accolades and fame are throwing his way. “I am enjoying these moments,” he dimples shyly, “I’ve had to work really hard to climb the ladder of success.”

Which is why he’s happy to appear on the same chat show as Priyanka Chopra — who wouldn’t? — or walk the ramp for fashion designers, shake hands with politicians, model for brands, appear for meetings of sports federations, and now, here, in Gurgaon, take possession of a new house that signals the end of two decades of struggle. The small town boy who knew what he wanted but rarely spoke in public, and then hesitantly, is now a picture of confidence following global recognition and big-ticket deals that should ensure that, wisely invested, he doesn’t need to seek out his fortune any more.

Not that the champ is going anywhere yet. His boxing career has just taken off and is at its peak. It wasn’t always so, though. Born into a family of limited means, Vijender Kumar lived through a particularly penurious existence. Few know his father worked as a bus driver, often putting in extra hours to raise funds for his son’s passion. Vijender himself undertook odd jobs for the same reason. His elder brother Manoj, who is a soldier with the Indian Army, was his biggest inspiration, egging him on to do better.

Growing up in a village near Bhiwani, it was never clear to Vijender that he would take up boxing, or any other sport for that matter, indulgences of the rich or upper middle classes really. The Bhiwani Boxing Club is known to be a nursery for boxers, and when Vijender enrolled here, it was soon evident that he had potential. “Everything is of international standard,” he says, “all of us boxers trained there,” the others including Jitender Kumar, Akhil Kumar and Dinesh Singh, fellow pugilists with whom he shares both excellent camaraderie as well as “healthy rivalry”.

According to him, Bhiwani Boxing Club is not just the best training academy in the country but, perhaps, the continent as well. It was from here he got off to an early start, participating in national, state, even district level competitions on a regular basis. In 2003, when he first won his national level championship, Vijender had arrived — at least in the eyes of his coach. “It was then I knew that I could fight, and fight well,” he recalls.

With little media attention on boxing, his exploits remained largely unsung till his selection in the 2004 Olympic Games in Athens, where his performance hardly covered him in glory. But what it did do was open his eyes to the international platform of boxing and raise his confidence about competing with the best. “That experience proved excellent for me,” there’s a change in his tone at the mere mention of Beijing.

Already, he divides his life into BB and AB — Before Beijing and After Beijing. While he recognised the enormity of his achievement, he says, he was caught by surprise at the nature of the reception the nation laid out for him. “I was always confident of doing well at the Olympics,” he says, “I wasn’t surprised [by my win].” But the bronze he held in his palm was something the country believed belonged to them collectively, and suddenly everyone wanted a piece of Vijender, a frenzy he is happy to enjoy, including the brand endorsements that are becoming part and parcel of any sports celebrity. Nor is he easily distracted by either the wealth or the adulation.“My focus always has been on boxing and will continue to remain so,” he says simply.

But isn’t he making far too many appearances in the glamour industry? While it’s not unusual to see him walk the ramp, he’s also been appearing on a lot of TV shows. In fact, he’s all set to host the desi version of The Contenders too. While Indian cricketers face a lot of flak for gaining unnecessary mileage by endorsements and appearances on the small — and big — screens, doesn’t Vijender fear a backlash of sorts? “No,” he retorts, “why should I be afraid? I don’t let anything hamper my performance.”

He might be revelling in the attention, but his proudest moment, he says, was when he went to Rashtrapati Bhawan to collect the Rajiv Gandhi Khel Ratna Award — the highest honour for an Indian athlete — from the President. As for the rest, Vijender grins and says it gives him the opportunity to connect with his fans. He is probably the only Indian boxer to have a legion of fans — both male and female. Nor is he uncomfortable talking about his past, though he insists on not making too much of it either. When it was brought up at a chat show on which he was a guest along with actor Priyanka Chopra, that he was once part of a security posse at a rally in which she had participated, he refused to make too much of it. “I grew up the hard way,” he acknowledges, “that’s all there is to it.” He says that he doesn’t have much of a life apart from boxing. True, he makes appearances on ramps and chat shows, but at home he likes to spend time with his family, especially when his brother is in town. Talking about his family, he says that he now wants to give them a comfortable life — something they deserve — he says.

What about his spends? Designer clothes or fancy cars, for example? Vijender says that he loves the simple life. “I’d rather spend my money for the future of my family,” he adds.

Just back from Rome, Vijender has mixed feelings about his performance there. Though he bagged a bronze, he confesses that he could have done much better. Because expectations from him now run high, people keep a close tab on how he performs in each bout. He admits that his fans in India were disappointed when he returned without a gold. But it’s this pressure that eggs him to fight harder, he says. “Earlier, when there were zero expectations, I did my best. Now, I know that the entire nation is watching me. I have to work even harder.”

For now, he is extremely kicked about the multi-million dollar World Series of Boxing planned on the lines of cricket’s Indian Premier League, with city-based franchisees. “It shows that boxing has come a long way,” he says with a hint of pride in his voice. But it’s the London Olympics which is his ultimate target, where he hopes to leave his indelible imprint on not just Indian but international level sport. With two years to go, he might be having fun chatting up celebrities or mingling with the stars, but that hasn’t put any distance between his hands and his gloves.

In the clearing stands a boxer, and a fighter by his trade/ And he carries the reminders/ Of every glove that laid him down or cut him till he cried out in his anger and his shame/ ‘I’m leaving, I’m leaving’/ But the fighter still remains. – Business Standard

]]> 4717 2009-10-03 02:57:29 2009-10-03 09:57:29 open open no-more-poor-boy publish 0 0 post _encloseme 1 syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6741#comments wfw:commentRSS http://zikkir.com/business/6741/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6741 syndication_item_hash 1c6458bd818325cf4d21ff836e42158e Robert Langdon, RIP. Please! http://www.ethiopianreview.com/business/4716 Sat, 03 Oct 2009 09:58:40 +0000 http://zikkir.com/business/?p=6743 Dan Brown’s book will still be read by millions, so what if they’re disappointed, asks Kishore Singh

Like most people, I read Angels and Demons after Dan Brown found fame and fortune with The Da Vinci Code — and no, I didn’t like the movie either — even going through Digital Fortress as a sworn-into-the-secret-pact Brown loyalist. And waited for the return of Harvard symbologist Robert Langdon with his bag of hidden codes and mysteries and refreshingly novel way of exploring the medieval world that wraps itself around our here and now.

Alas, some things are better anticipated than fulfilled. The Lost Symbol is everything that the Code was not — it is formulaic, repetitive, suffers from a weak plot, Langdon is written up as a wimp, the villain makes Mogambo look more evil than comic, and the unlayering is as exciting as peeling an onion while your eyes tear up. Brown, it seems, used up his whole bag of tricks in Angels and Demons, repeating a chunk of it in the Code when the former didn’t register on the publishing richter scale, and seems to have had nothing more left over for any new book that flogs the same subject to its certain death. That he took 509 pages to do it is a remarkable ode of faith on the part of his editors, and an act of faith for his readers who might well wonder whether the original Brown has been replaced with a Noetic clone, but still the hysteria remains. No one believes a Brown can be so bad, it’s unreadable. They’re wrong.

Somewhat predictably, the book begins with Langdon being summoned — this time to Washington — where a mentor’s hand, cut at the elbow and placed at the heart of the Capitol Building, has been tattooed to provide the secret code to the Ancient Mysteries that he must discover if the owner of the hand, Peter Solomon, is to survive. Goading him on is the evil Mal’akh, a member of the secret Masonic society’s rare 33rd level, who must find a hidden portal before the night is out, setting Langdon off on a reluctant chase beneath the Capitol Building, through a maze of chambers and tunnels and staircases, uniting with Peter’s sister and Noetic scientist Katherine Solomon, whose laboratory Mal’akh wants to destroy for its attempt to reconcile mankind’s future with its ancient past.

Unfortunately, the suspense fails to build up, leave alone hold, partly because the Masonic order does not excite the same degree of voyeuristic curiosity as organised religion and the “lies” of papal Rome, Joseph, Jesus or Mary Magdalene’s purported sex lives that Langdon “nails” in the previous bestsellers, but largely because the “secrets” he uncovers in Washington, including Freemason George Washinton’s apotheosis to godhood, are neither revealing, nor extraordinary, and certainly not scandalous. (The BJP, the VHP and the RSS, on the other hand, may want to recommend it as a school text for its references to the Vedas, the Bhagvad Gita, Krishna, Buddha et cetera being repositories of mankind’s ancient and future knowledge.) As Langdon and Katherine move from one clue to the next, one can’t help wondering why they don’t have a more holistic outlook considering they’re both familiar with the capital’s history and architecture — pyramids, satanic pentacles, Masonic compasses and all.

If the plot is on life-support, Brown unfortunately gives up the ghost of the storyteller, interspersing the jagged “action” with wholly unwanted diatribes on a variety of subjects that slow down the already meandering plot. Since the story is limited to just one night, it could have been written as a taut thriller, instead it ends up resembling a dowager’s patchwork quilt with hardly any link between one patch and the next.

Which is why this spoiler: Pump up the steroids and wear makeup, and your own dad won’t recognise you! Don’t test our faith any more, Mr Brown, we’re outside the code.

THE LOST SYMBOL
Author: Dan Brown
Publisher: Random House
Pages: 509
Price: Rs 699
- Business Standard

]]> 4716 2009-10-03 02:58:40 2009-10-03 09:58:40 open open robert-langdon-rip-please publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6743#comments wfw:commentRSS http://zikkir.com/business/6743/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6743 syndication_item_hash 3b6c26e84f0c16ea25a978bd9b54e56e _encloseme 1 Kabir says http://www.ethiopianreview.com/business/4715 Sat, 03 Oct 2009 09:59:54 +0000 http://zikkir.com/business/?p=6745 So the SMSes have started again: 2/3/4 bedroom apartments 10 minutes from here or there, from this or that reputed builder, booking amount 10 per cent, call this number. Last chance, don’t miss, book now. Also the full-page ads: nondescript apartment towers rooted in a positively Middle Eastern abundance of palm trees, paths and waterways, all surrounded by improbable oceans of virgin green. And on the TV: ads for the flat-screen TV that will turn your house into a home.

Clearly the economic downturn is fading and sunny aspiration is breaking out again from behind the clouds of uncertainty. Speaking of heat, most heinous of all: the TV ad in which a mint-chewing hipster breathes icy air over penguins and polar bears in a hot subcontinental zoo, cruelly offering them the brief illusion that they are home and free in their cold native lands (bizarrely, the ad just won an award from People for the Ethical Treatment of Animals for showing that zoos are bad). Those animals were reminded of their captivity; we human animals keep forgetting ours.

It’s all maya, after all, and never more so than when the good times loom. What better time, then, to seek out Kabir, the foremost poet of maya — indeed, one of the foremost poets of all time. I read a selection of his verse in the fine English translation of Vinay Dharwadker, in Kabir: The Weaver’s Songs (Penguin, 2003). In childhood I memorised a few Kabir refrains and dohas because we sang them in school; then they were just mellifluous in the half-understood antique Hindi. Now, as an adult, I am stunned at the power of Kabir’s words. He’s so hard-hitting that one almost dares not read his words, let alone read them aloud. Even holding the book raises my sense of responsibility.

We know
what Maya is
—a great robber and thief,
a con-woman in cahoots with con-men.

Ouch! And if one thinks oneself safe as, at worst, a minor accomplice in this cycle of subterfuge, Kabir will not hesitate to make a personal attack:

Brother, why do you strut about,
so full of yourself?
How come you’ve forgotten
those ten months
when you were suspended
upside down
inside the womb?

Which is a striking and yet subtle way to remind one of one’s unimportance and unfreedom. One is captive to one’s appetites no less than to one’s mind — both are complexities that get in the way of the simple truth that Kabir, the uneducated weaver, tells us we keep turning away from. Organised anything, including religion, is misleading, and Kabir is contemptuous of its claims:

The brahmin fasts
once a fortnight,
the qazi fasts for Ramadan.
Each devotes
eleven months to himself,
then looks for rewards
in a month of fasts.

Eid is just over, Diwali and Christmas are on their way. It’s only natural, Kabir might say, that this holy season is also the season of shopping, because this is when maya is at its height. In his life, although we know precious little about it, Kabir may have been hounded out of his beloved Banaras for his business-unfriendly ideas. In the modern world, it seems to me, the illusion is so pervasive that it’s getting harder and harder to see around the edges. It’s more true than ever, what Kabir says:

When I tell the truth,
people run
to beat me up
— when I tell lies,
they believe me.
- Business Standard

]]> 4715 2009-10-03 02:59:54 2009-10-03 09:59:54 open open kabir-says publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6745#comments wfw:commentRSS http://zikkir.com/business/6745/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6745 syndication_item_hash a3126cfd7982bbf282c5a977169047ad _encloseme 1 Retail snobbery http://www.ethiopianreview.com/business/4714 Sat, 03 Oct 2009 10:00:41 +0000 http://zikkir.com/business/?p=6747 With the launch of Palladium in Mumbai’s Phoenix Mills, luxury retail and hospitality find a new expression.

It’s a teaser of what the Shangri-La might be like when it opens a few months later, a foretaste of the 45-storey high world of luxury that the hotel promises, its façade dramatically black and gold, a sky lobby — Mumbai’s first –—located at a height of 500 ft with spectacular views of the Arabian Sea and the race course. Part of the redevelopment of Phoenix Mills, Palladium, its luxury mall — the equivalent of Bangalore’s UB City and Delhi’s DLF Emporio — straddles the first three levels of the Shangri-La in a striking Art-Deco ambience spread across 200,000 sq ft of restaurants, upmarket brand stores, salons and lounges, and it is this that was introduced last week to the city by promoter Atul Ruia.

“It looks like the shopping malls in Dubai,” cooed 19-year-old Pratyusha Shah, having already alerted her friends to its existence in downtown Mumbai. “Palladium,” she said, “is closest to Deira City Centre in Dubai,” tucking her Gucci shades into her Polo backpack — symbols of her frequent trips to the desert outpost. Pointing to the glass-domed atrium clad in smoked mirrors and surrounded by hand-laid Italian marble, onyx and wood paneling, she added, “This matches any international design.”

Shah may not know Atul Ruia, managing director of The Phoenix Mills group, but she’s accepted Palladium as the most significant shopping landmark in Mumbai’s Lower Parel area. It is Ruia who is responsible for transforming this run-of-the-mill shopping area into Mumbai’s latest luxe destination. With Palladium, he will have completed the development of the first phase of Phoenix Mills, the Shangri-La launch forming part of its second phase and to be ready by the summer of 2010.

Developed with an investment of Rs 100 crore, Palladium spreads over a total built-up area of 450,000 sq feet and an additional 300,000 sq feet of car parking over five levels. Along with P G Patki and Associates, the architects for the project, the Ruias have seen to it that the luxury mall area, assisted by the ambient lighting, set off the architectural landscape. An elegant canopy at the entrance, what some some might consider an unnecessary frill in a highly populated city such as Mumbai, adds to its value. “We are catering to the well-travelled consumer,” Ruia explains, one reason why no expense or design detail has been spared in providing the ultimate luxury experience for the shopper.

Comprising of 55 retail outlets — 22 of which will open to the public today — and a clutch of food and beverage outlets, a lot of strategic planning has gone into the design of the mall. “Achieving that effect has taken meticulous planning and scientific designing, something very few will realise on the mall floor,” explains Ruia. “For instance, the atrium is the focal point and the manner in which the line of sight is handled is an integral part of the design.”

Gayatri Ruia, as business development director for Palladium, adds, “We have placed antique Art-Deco furniture and objets d’art to underline the luxe appeal.”

A trained interior designer herself, Gayatri Ruia spent long days mulling over the colours, shades and floorings for Palladium. “Anyone who knows me and has been to my house will recognise that the Art-Deco floors at Palladium are my idea,” she smiles at the admission. Overall, Palladium’s retail space exploits Neo-Classical elements within a contemporary idiom.

Internationally, such malls are part of five-star hotel experiences, since the profile of the guest and the shopper usually match, and because the experience being provided is similar in both cases, and therefore complements the other. Atul Ruia ticks off some of these unique value additions that have been incorporated into the design of Palladium, such as “personal shopping assistance, ample parking area, forex counters and banking, VIP lounges, luxury salons, upscale eateries and even baby care facilities”, services that will be made available from early next year.

Besides PG Patki Architects, Callison Architecture Inc and 505 Designs have worked on the design, constructed by Shapoorji & Pallonji, and Ahluwalia Contracts. The Ruias have an interest in malls and hotels around the country, though the Shangri-La, in which the Palladium is situated, will be the Asian hospitality giant’s flagship hotel in India (it operates another hotel in New Delhi). As a result, Gayatri Ruia points out, international luxury brands that until now had been limited to the heritage wing of the Taj Mahal Hotel or the Grand Hyatt Plaza at Santa Cruz, will now be able to come together under the same umbrella, to offer their customers the kind of high street experience that has otherwise been missing in Mumbai.

Already on board at Palladium are Zara, Burberry, The Comedy Store, Tommy Hilfiger, The Collective, Ted Lapidus, Bo Concept, Top Shop, Estee Lauder and designers Rohit Bal, JJ Vallaya, Shantanu & Nikhil and Anita Dongre. “Brands cannot afford not to be here,” she points out, “which is why by February next year we will have full retail occupancy.”

Style, as we might suggest, has its own snob value. – Business Standard

]]> 4714 2009-10-03 03:00:41 2009-10-03 10:00:41 open open retail-snobbery publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6747#comments wfw:commentRSS http://zikkir.com/business/6747/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6747 syndication_item_hash 6867431801f7a8f2fe97717cf890da9b _encloseme 1 Behind the commonness http://www.ethiopianreview.com/business/4713 Sat, 03 Oct 2009 10:01:36 +0000 http://zikkir.com/business/?p=6749 Painter Gieve Patel is a masterly observer of the nuances of life.

Gieve Patel is not yet seventy, but an age when he can look back to a body of works stretching all the way back to the late ’60s, and which, collectively, allow for a retrospective, though the almost-timid and soft-spoken artist (among other things, including playwright, poet and doctor) prefers “select works” from the period spanning from 1971 to 2006. At an opening at Gallery Threshold in New Delhi (the same show will open in May 2010 at Gallery Chemould in Mumbai), surrounded by his “friends, people…”, he confesses to being overwhelmed.

Patel, who has managed to keep a low profile despite an impressive repertoire of work, could be a representation himself for cartoonist R K Laxman’s common man, a trait he cherishes as he moves around, absorbing the transient migrant to the city, the pavement dweller, the ship builder, bicyclists and strollers, the people who make up his paintings with the city background, its overwhelming presence captured in the emotions of the people who, he says, “are the point of entry into any of my activities”. The city or other landscapes may recede into a suggestion, “but the two things have to come together” in his art, he says, a reflection of “the presence of man on earth”.

He has had occasional periods when he painted without human figures, such as railway station architecture — this was in the ’70s — and “for over 12 years now, a series of looking into wells and capturing reflections”, something he hopes to continue working on, even though, recently, he’s added a new element to his oeuvre: sculpture. “The general approach to my work through the decades has remained fairly consistent,” he says, “with sculpture the only departure. Though my friends tell me that the way I handle clay is the way I paint, so I suppose that is consistent too.”

An occasional poet — “I find I have to wait for a poem, and to be completely passive” — his painting is a constant activity, if not the actual act of the painting then at least the preparation for it. “It is in many ways a physical activity, something I find reassuring: cleaning the palette, setting the brushes, putting up an easel. I like to listen to music” — mostly Western though occasionally Hindustani classical — “though I don’t paint while the music is on. When listening to music, I like to look a little at the painting I’m working on, it helps to clarify what I’m going to do next, but when I paint” — he also admits to being a “slow” even “temperamental” painter — “I prefer silence.” And though he isn’t obsessively disciplined, he does paint regularly even if not daily, “for just a half-hour, or maybe three hours, though lots of time goes looking at the canvas”.

Unlike several of his peers, Patel says he has never been tempted to try his hand at abstraction — “though abstracting the essence of what you are painting is a universal phenomenon” — because to him the subject is more important than the act of painting. “I always start with the subject matter in my mind,” he confides, and writes in his catalogue that each work “represents an aspect of my thinking that will surface unpredictably from time to time”. Notes curator Kamala Kapoor, “Patel has long drawn and painted the ordinary, in terms of the everyday, and also the extraordinary, in terms of deprivation and dispossession in a way that draws these features out”, something, she adds, that might not have been noticed “before they came to be on this artist’s canvas and paper”. And yet, she reflects, “one can always recognise Patel’s complete commitment that remains free of trend or compromise, where the work has no middle ground”, but which forms for him “a means for probing reality, nature and human experience”. – Business Standard

]]> 4713 2009-10-03 03:01:36 2009-10-03 10:01:36 open open behind-the-commonness publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6749#comments wfw:commentRSS http://zikkir.com/business/6749/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6749 syndication_item_hash 720ee5a309bb4671a32cd886905a4753 _encloseme 1 Fair city http://www.ethiopianreview.com/business/4712 Sat, 03 Oct 2009 10:03:19 +0000 http://zikkir.com/business/?p=6751 Checking out Mumbai’s Art Expo this weekend.

It’s a truism that a city of new, young, emerging collectors such as Mumbai needs its own art fair, something that now exists in the form of the Art Expo, the second edition of which opened yesterday at the Nehru Centre in Worli, and which will stretch over this weekend as a showing of 28 galleries and a few talks. The more interesting of these was scheduled on Friday and had international collector and trend spotter, Kay Saatchi, pointing out how to identify emerging talent and build a collection, while other speakers today will include Judith Greer, Anjolie Ela Menon and Jittish Kallat, and tomorrow Rajshree Pathy, Bose Krishnamachari, Kirsty Ogg and a panel discussion by experts on buying art in these difficult times.

It is buying art in these times that promoter and organiser Vickram Sethi says is the raison d’être for the Art Expo, which follows in the wake of a hugely successful Indian Art Summit in New Delhi. “Bombay and Delhi are two different continents,” says Sethi — and he isn’t talking of only the distance, though that figures too — “a lot of the new breed of buyers from Bombay can’t go to Delhi to see art,” or at least a lot of art when multiple galleries from around the country, and some from around the world, come together on the same platform. He does insist though that the Mumbai collector is more likely to be a serious connoisseur, and that it’s easier to find buyers for high-value art in Mumbai than in Delhi. (A lot of people in both Mumbai and Delhi might disagree.)

Sethi, who has over two decades of interest in promoting art, is also associated with the annual Giftex trade fair, and given his “domain knowledge”, put it together in the form of the Art Expo, a meeting point, he says as he walks around Nehru Centre, for young artists (“they’re investor-friendly”) as well as for interesting works of F N Souza (“to die for”, from Dhoomimal Gallery), a “superb” bull by P Shinde at Sakshi, Patrick Hughes’ retrospective work at Marigold, a different body of Chittrovanu Mazumdar’s work from the Summit at Dubai’s 1×1 gallery, and a host of the “usual suspects”, he laughs — minus, presumably, M F Husain.

The talkathons might be the magnets for a few, but “the bottomline for any fair is commerce,” says Sethi, and with “Indian art values being so right, this really is the time to buy, or invest in art”. Those footfalls will tell. – Business Standard

]]> 4712 2009-10-03 03:03:19 2009-10-03 10:03:19 open open fair-city publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6751#comments wfw:commentRSS http://zikkir.com/business/6751/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6751 syndication_item_hash e9e4c6080a96ec2ad035c2c94906d9da _encloseme 1 Back to square ones http://www.ethiopianreview.com/business/4711 Sat, 03 Oct 2009 10:04:57 +0000 http://zikkir.com/business/?p=6753 Mercedes-Benz looks into its past for inspiration and finds that it is not that well-rounded! We drive the W212 E350
1

There was a time not so long ago when a bunch of guys bored of drinking factory-made coffee decided to cash in on the 100-year old pedigree of Mercedes-Benz. The only way, they decided, to do that was to stop engineering cars three times better than that was required. The resulting cars had more plastic, cheaper wiring and lots of electronics that could go wrong. Occasionally, they did go wrong. And when they went wrong, they were prohibitively expensive to fix. Sure enough, the reputation of Mercedes-Benz as a maker of cars ‘built-like tanks’, ‘carved out of billet’ and with doors that ‘shut like vaults’ started on a downward tumble.

Honestly, that is what the history lessons would want you to believe. Not necessarily me. Sure, evolution meant cars that looked newer and car-making processes that were newer. But I thought — and still think — the W210 and W211 are cars that are maligned for no real reasons. The W210s were robustly built cars and I don’t remember them failing me or anyone whom I knew. Just a month back, I spent a week in a W211 Special Edition and thought it had better ride quality and comfort than most contemporary Audis and BMWs. Yes, a few cars in Europe suffered electrical problems and had some issues with brakes, but hey, they still looked classy and they were pretty well-built.

And this was also the decade when the alphabets A, M and G started to mean ‘run for cover’, as some stupendously fast E-Class cars came out wearing them. In short, I am prejudiced walking into this first drive. But those who know me will tell you that the W124 cast a massive spell on my formative years as a motoring scribe — it became the benchmark for almost everything cars were meant to be. At least for me. And guess what, I think the W212 that you see in these pages looks as if it’ ahem, ‘sculpted out of a rock’. Oh God, am I discovering 1990’s jargon again!

The twin-trapezoidal headlamps and the upright grille are certainly inspired from the past and so are the squared-out bumpers, flanks and rear view mirrors.

The new E-Class is a very large car from the outside — enormous enough to give you hints of how the next generation S-Class will look, while the prominent wheel arches at the rear are inspired by the current S-Class.
3
Inside, the squared-out theme continues, with the instrument console leading the way. The wood inserts look and feel classy again (the last generation interior wasn’t bad at all), though space is at a premium for a car that looks oh-so-big. The electric seat adjustments are now on the door so that healthy people like me do not have to bend unnecessarily. As usual, the E-Class lives up to brilliant ergonomics, but comfort more than sportiness seems to have become the focus. Still, the attention is more on the front seats than where most owners are going to spend time in — at least in India. It is high time Mercedes-Benz delivered a ‘mini-limo’ version, stretched at the B-pillar so that more legroom can be liberated.

A host of engines are available for the new E-Class. What will come to India first is the E350 petrol (and not the CGI version) that is good for 268 bhp at 6000 rpm and 35.7 kgm of peak torque. This will be followed by the 231 bhp, 54.8 kgm E350 diesel a few months down the line. There are even smaller (read economical) diesels in the form of the E220 and E250, and we would expect one of these engines to make its debut sooner rather than later since they make for brilliant fleet cars.

Our drive was restricted to the streets of Lutyen’s Delhi and that meant not enough opportunities to check out the performance. So you will have to wait till we subject the car to a proper road test for numbers.

The W212 does not ride as well as the Mercedes-Benzes from the 1990s however — especially on slightly broken roads. But one has to understand that modern E-Class cars with powerful engines are meant to handle way better than the ‘tanks’ of yore and need stiffer suspension setups. The steering, while more precise than in the older cars, still feels more fluid (and hence more luxurious) than the sportier German competition.

To sum up, the first impression is that Mercedes-Benz has begun the journey to their hallowed past with this new E-Class. But a whole lot has changed since the days of the W124 — cars need to have performance, they need to be agile and they need to be economical. That also means that Mercedes-Benz needs to set new benchmarks rather than chase old ones. It will be interesting to drive a more powerful car (an E63 perhaps?) in its natural surroundings to find out how the new chassis copes. Watch this space.

E MAJOR

The new E-Class is dripping with features and technology. One of them is the Attention Assist, that detects if a driver is feeling drowsy —using up to 70 different parameters. Highly sensitive sensors continuously monitor a driver and driving behaviour on these parameters, and in case minor steering errors are detected with a sharp over-correction, the car sounds an alarm. The adaptive high beam assist for instance, uses a camera to recognize head lamp beams of oncoming cars and automatically adjusts the beam to ensure they aren’t blinded. The new E350 also features a clever parking sensor system that uses not just a distance detection system, but also the ideal parking maneouvre to prevent unnecessary turns and the possibility of a parking incident. – Business Standard

]]> 4711 2009-10-03 03:04:57 2009-10-03 10:04:57 open open back-to-square-ones publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6753#comments wfw:commentRSS http://zikkir.com/business/6753/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6753 syndication_item_hash b29a99534cc5bd54c29d04c10d0a7a43 _encloseme 1 Launch break http://www.ethiopianreview.com/business/4710 Sat, 03 Oct 2009 10:06:48 +0000 http://zikkir.com/business/?p=6755 IN MY MIND
r
The festival season is well and truly upon us. First it was Nissan with a twin launch — the all-new X-Trail and the face-lifted Teana. If the last generation car is anything to go by, the X-Trail is one seriously capable car that is equally at home inside the city as well as the rough. Powered by a 150 bhp diesel and retailing at around Rs 21-25 lakh, this Nissan should give the likes of the Honda CR-V (petrol) and the Chevrolet Captiva (diesel) a good run for their money. If you are in the five-month long queue for a Toyota Fortuner, you should certainly look at the X-Trail option. Then it was the Land Rover’s turn to launch the all-new Freelander, the affordable (if a Rs 33.8 to 45 lakh price tag can be called that) SUV that is meant to take on the soft-roaders such as the Audi Q5 and the BMW X3. It may not be ‘the’ chic brand, but the Freelander comes with genuine go-anywhere genes. Ensuring that your friendly motoring scribe was putting on more weight was Ford with a surprise unveiling ceremony for the brand new Figo.

The American press picked up the Indian launch story and quickly hailed it as Ford’s answer to the Tata Nano — trust the media to create a story when there isn’t one, right? I was whisked away from the Ford venue to the new Mercedes-Benz E-Class launch the same day. That was five cars in the matter of barely a week — who’s complaining. Met, shook hands and even managed to ask some silly questions to Boeing legend Alan Mulally, now president and CEO of Ford. It was the achievement of the week indeed, considering the PR arrangements that stood out for the lack of any.

IN MY GARAGE
After a long day constituting a 4 am shudder of a wake-up call, a cheap flight to New Delhi at an unearthly hour, two press conferences, one Ford CEO, heavy lunch, mad rush to the airport to catch a not-so cheap flight back to Mumbai should be rewarded with a nice car to drive home, right?
Enter the Skoda Superb. As mentioned here before, I have been enjoying the ample legroom of this car by employing a driver. But this day, the pleasure of coaxing the diesel motor through the paddles was mine and, oh boy, is this car talented or what. M.I.A on the stereo and pedal-to-metal with no regard to the pouring rain… I really like this machine. So what if the day-long parking ticket at Mumbai airport (Rs 750!) threatens to cost more than two-way taxi rides!

CAR OF THE WEEK
It’s got to be the Ford Figo. The car, which means cool in Italian, is not really path-breaking in design. Actually, it looks like a small car conceived by fusing together many small European Fords — a little bit of the last-gen Fiesta, tail-lamps that ape the Fusion and so on. But what makes the car important is the fact that it is ready to be rolled out of the Chennai plant that is receiving a $500 million upgrade. And the fact that Ford has beaten both Toyota and Volkswagen to the lucrative Indian B-segment. Way to go.

BIKE OF THE WEEK
October 5, according to the grapevine, is the launch date for the Kawasaki Ninja 250 — a motorcycle I grew old lusting after. I hear it will be “assembled” in India and may cost upward of Rs 2 lakh. Can’t wait for a ride!1

QUESTION OF THE WEEK
How many car plants still fly the Ford flag?
Ninety plants worldwide, with an employee base of 201,000. – Business Standard

]]> 4710 2009-10-03 03:06:48 2009-10-03 10:06:48 open open launch-break publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6755#comments wfw:commentRSS http://zikkir.com/business/6755/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6755 syndication_item_hash ac0770248958e8b7cf49ac5d3c6b0ac4 _encloseme 1 Crossed up http://www.ethiopianreview.com/business/4709 Sat, 03 Oct 2009 10:09:51 +0000 http://zikkir.com/business/?p=6757 I have been considering buying a crossover SUV for some time but cannot make up my mind. I live in Mumbai and my weekday commute is about 10 km. On an average, my monthly driving would be 400-500 km. The car will be self-driven. I currently drive a seven-year old Skoda Octavia which needs to go as it has now started giving me a lot of problems. The reason why I was looking for an SUV: my dad has recently bought a weekend home in Khandala and I plan to drive down there on weekends at least twice a month. The approach to this house is a semi-gravel path and a bit rough. What I’m looking for in my new vehicle is that it should be fun to drive, well built, have comfortable rear seats and reasonably easy to get in and get out for my folks. I’ve shortlisted some cars

1) Toyota Fortuner — Till last month this was what I wanted. Now I find out that the deliveries won’t take place for at least six months. During the test drive I loved it, but the middle row was not that comfortable

2) Mitsubishi Outlander — This car seemed the perfect package when I drove it. Loved the paddle-shifts, the handling was good but pickup was average. The rear seat was comfortable and it was quite easy to get in and get out

3) Nissan X-Trail — I haven’t driven the new model but the old model was a good drive

4) Honda CR-V — I liked the handling and the rear seat was quite comfortable as well. The current price for a new car just doesn’t seem right! I also have a concern that it might be too late in the lifecycle to buy this car since a new model is expected in 2010. I even hear a diesel CR-V is expected in some months.

What’s the downside of going in for an Outlander? I know the resale value is going to be poor, but what’s the feedback on after sales service? I would appreciate any comments or suggestions that you can provide me

Anurag Gupta, Mumbai
e

Since you genuinely don’t need a diesel for your kind of driving, we suggest that you look at the Outlander and the CR-V. The Outlander is an immensely satisfying car to drive, it is well-built and has decent comfort levels. However, our recommendation for you would be the CR-V. It’s a comfortable car that’s not only fun to drive, but also is extremely refined. What’s more, it also enjoys a much better service setup across the country, unlike the Outlander. While it might not be the most efficient around or the cheapest, it makes up for its overall ownership experience as well as strong residuals in the used car market. The new CR-V is nothing more than a cosmetic facelift, while the diesel is not expected until 2011. It still is the betterbuy for you.

Our desire

We are looking for a car in the range of Rs 6-6.5 lakh. This is our second car after the Maruti 800, which we’ve now used for five years. We have zeroed in on the Hyundai Accent and the Chevrolet Aveo. Of these two, we find GM’s baby to be best. However, will like your views on this and please consider the Maruti Suzuki Swift Dzire (we dislike it mainly for its shape) and Tata Indigo (Tata’s sedan does not have pride of ownership) in your views. The normal running will be 200 km per month (maximum). We are fine with 12-13 kpl mileage.

P Sharma, via email
1

We still think that the Swift Dzire is the best buy in that segment, and you can go in for the top-end ZXi with all the bells and whistles. However, if looks do matter, then the Chevrolet Aveo makes for a compelling buy. Its 1.4-litre engine is decently peppy and there’s a lot of space on the inside and ride quality is quite decent too. Chevrolet has also loaded it with features and at that price it does come across as a decent chauffeur driven sedan. – Business Standard

]]> 4709 2009-10-03 03:09:51 2009-10-03 10:09:51 open open crossed-up publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6757#comments wfw:commentRSS http://zikkir.com/business/6757/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6757 syndication_item_hash b08d399e6ca539a1ff600baa9e6af90f _encloseme 1 Geetanjali Krishna: Yours, mine … or ours? http://www.ethiopianreview.com/business/4708 Sat, 03 Oct 2009 10:12:39 +0000 http://zikkir.com/business/?p=6759 My son was quite intrigued by his grade-six lesson on stereotypes and discrimination. “Women,” said he, quite “my book tells me, are gentle creatures who stay at home and rear children while fathers go out to earn…” Times, said I to him, were a-changing and gender roles had obviously been re-written long after his text book had been written. However, days later, I realised that just like his social studies textbook, Indian courts have a similar approach to issues of custody and divorce. Theoretically, the law is impartial towards both parents and is supposed to concern itself primarily with the child’s welfare. In practice, however, the old stereotype of the mother being the best person to bring up and nurture a child, invariably surfaces.

Evidently, what Indian courts and school textbooks need to realise is the fact that nobody likes being straitjacketed into a stereotype. Just as there are many mothers who exercise their freedom to work and establish careers, there are fathers who’d dearly like to take on greater parental responsibilities. Recently, I chatted with Mehul Mehta, a Mumbai-based father and founder-member of Children in the Centre (CITC) about this. The urge to contribute more to their children’s well-being has brought all sorts of non-custodial parents under the umbrella of CITC — it has stock brokers, admen, IT professionals, call centre executives and many more. “We even have woman members who have lost custody of their children because the Muslim personal law favours men,” said he.

CITC members, said Mehta, would like to challenge the gender-based roles they’ve been slotted in, and are chafing under the arbitrary custodial directives issued to them by the court. “Many of us are willing to work from home, and indeed, for professionals like stockbrokers, writers and IT people, this is no great sacrifice. We’re seeing gender roles changing in front of our eyes — why should our child custody laws not recognise this fact?” said Mehta. This is obviously a ripe subject, for since its inception, CITC has received countless emails and letters of support. “Many are tales of personal tragedy — fathers who need a court order to talk to their children on the phone, mothers who’ve not seen their children for years … and at the centre of it all, children suffering because they’ve been deprived of the nurturing from a natural parent,” said he.

What, I asked Mehta, were the changes CITC would like to see in the legal system’s understanding of these delicate issues? “We have collated data and case histories from 13 countries, and have seen that the world over, courts grant joint custody to divorcing parents, unless there’s any abuse involved. Currently in India, however, the law clearly states that in ordinary circumstances, the custody of a child younger than five will be given to the mother,” said he. Joint custody will serve, CITC believes, the child’s best interests, ensuring s/he receives attention from both natural parents. Second, CITC is advocating that children of divorcing parents should go through mandatory, extensive counseling. “Presently, there’s no dedicated facility where affected children can receive the counselling and guidance they desperately need,” said he. Third, the divorcing parents must undergo compulsory workshops to sensitise them towards handling their children and their questions. “Our aim is to make process of divorce as easy for the children as possible,” said Mehta.

I thought about divorce and its unintended collateral damage long after talking to Mehta. His parting words lingered even longer: He told me that whenever he said goodbye to his child, there was one thing he made sure he said: “Papa may not live with you, but he’s always there…” – Business Standard

]]> 4708 2009-10-03 03:12:39 2009-10-03 10:12:39 open open geetanjali-krishna-yours-mine-%e2%80%a6-or-ours publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6759#comments wfw:commentRSS http://zikkir.com/business/6759/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6759 syndication_item_hash efbb769a0a1d604b867cb029ab310c01 _encloseme 1 Kishore Singh: Inviting trouble http://www.ethiopianreview.com/business/4707 Sat, 03 Oct 2009 10:14:04 +0000 http://zikkir.com/business/?p=6763 We’ve been wanting to have a party, a formal affair — not the kind where friends come and dump on you with their problems and drink up all your whisky and puke over the carpet — for some time now, but with little luck. And no, not because we don’t have formal acquaintances, or because the cook is not up to a spiffy menu, or the intention doesn’t exist, but because it’s proving difficult to put together a list of guests that will not cause them, or us, embarrassment.

Take for instance our diplomatic acquaintances who, for reasons of peace between our two countries, I cannot name, but who have been kind with their offer of friendship, inviting us not to their embassy parties but for their salon tete-a-tetes at home. Unfortunately, the first time they invited us for a soiree my wife was travelling, on the next occasion I was occupied, and the third time round we were in the process of getting ready when uninvited neighbours arrived to help themselves to our bar, and just to make sure they didn’t pour the remaining alcohol down the sink in their drunken revels as they had once previously done, and finding that they were not open to the possibility of eviction, we had to abandon the idea of going out, though my wife was not in good humour.

No more invitations have since been received from them, and while the intention of thawing relations might seem a good idea, achieving it appears quite a task. “They couldn’t possibly accept our invitation when we’ve rejected theirs three times round,” explained my wife, who appears more aware of the complication of social rituals then I could ever hope to be. It make as much sense as the conundrum of socialising with our once dear, but now distant, friends, who some while ago celebrated the arrival of a grandchild into their family. For one reason or another, we could not then do the expected, of poking the baby in the stomach and chucking it under the chin, and as time passed, it seemed foolish to zip over to congratulate them on the arrival of the newborn when it was in danger of soon starting to walk and talk, or recite nursery rhymes. But ignoring the baby was just as despicable. Understanding our plight, our friends haven’t been able to ask us over for a drink, nor we call them for dinner, and while it’s entende cordiale for now, it’s beginning to resemble a cold war that oughtn’t.

“Nor can we invite your silly celebrity friends who’ve come home twice,” reminded my wife, “because then they’ll think they do not need to reciprocate our hospitality, that we’re seeking them out because we’re such losers,” she lapsed into adolescence-speak. “I know we must not invite the designer who is your friend,” I responded spitefully, “because she and her husband refused to come the last time you asked them.” “What about your idiot friends who forgot that they had been invited?” screeched my wife. “What about the time the hotelier ignored your invitation altogether?” I retaliated. “Fine,” shouted my wife, “I’m having a formal party, and you’ll see that everyone comes.”

Having set her mind to it, she chose a date and posted the invitations for the party, but as I’d predicted, the diplomats couldn’t come, nor the grandparents, nor anyone else who was on the list, for reasons unexplained. “Cheer up, it’s alright,” I said when I saw her moping at home. “But I’ve already paid the caterers an advance,” she said, “we have to have a party now.” “Let’s just call our gang for an informal get-together,” I agreed. “Right,” she said happily, “At worst, you’ll have to clean the vomit after everyone’s gone.” – Business Standard

]]> 4707 2009-10-03 03:14:04 2009-10-03 10:14:04 open open kishore-singh-inviting-trouble publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6763#comments wfw:commentRSS http://zikkir.com/business/6763/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6763 syndication_item_hash 3e2fb1cd8a4230a61db12b1b58dc2ddc _encloseme 1 Heaven’s choicest blessings http://www.ethiopianreview.com/business/4706 Sat, 03 Oct 2009 10:16:44 +0000 http://zikkir.com/business/?p=6765 Weddings are emotional events, and the days and months leading up to them typically times of very special family togetherness. The process of conceptualising, organising and implementing the ceremony, the fact that a son or daughter is going off to start a whole new family, the enthusiastic opinions of pretty much anyone with a mouth and tongue — all of it guarantees a precious kind of bonding and a good deal of blood on the flower arrangements.

I can’t think of many downsides to being in Bhutan this October 3, but there is at least one big one: that I could not be at the wedding of a college friend, one of the most extraordinary and incandescently bright women I’ve ever known. I’m not exaggerating. She majored in some rarefied form of biology; put on dramatic solo recitations of Longfellow to entertain us; composed and sang music; is an outstanding artist; and to this day is a superb athlete who completed a triathlon a couple of months ago.

This totally amazing woman, who is now a reverend, is getting married in upstate New York today. I’ve never met the man who will become her husband later today, but I wish I could take him out for a cup of coffee, sit him down and talk to him about what an amazing person she is, and what an honour he should think it to have her in his life. He knows, of course — everyone who knows her knows — but I’d still like to make sure he understands this well.

The closest I ever get to feeling like a parent is when my friends and relatives get married, at which time I also congratulate myself on having opted out of parenthood, because I’d be terrible at it. For one thing, whenever I stand over a newborn I feel like the Wicked Witch of the East, because right after cooing and feeling pleased about baby’s peerless cuteness, I think, Oh god, poor benighted little soul, it’s going to have to learn so many things, and wake up early to go to school for years and years, and then work all its life, and put up with lots of little cruelties, and suffer various heartbreaks, and then get old and croak. And that’s if all goes well.

Similarly, while everyone is busy beaming at the bride and groom and being thrilled about wedding food and love and other perishable items, I sit there worrying about whether they’ve examined their decision, whether they know what they’re doing, whether they’ve seen the dark side of their beloved, whether they will be treated right, and whether they understand how much sleep children deprive you of.

That makes me well up with worry, and then people misunderstand.

I remember bawling years ago because my friend the groom was all grown up and embarking on the wonderful but difficult journey of his own life; but his other friends thought I was lamenting the fact that I wasn’t his bride.

It goes without saying that the urge to protect people from their (often perfectly pleasant) lives is an idiotic, fruitless project, no matter how well intentioned. The whole idea is to let go, and cheer them on from the sidelines even if the race they’re running seems perilous. That’s why the reactions we institutionalise tend to hug the safe shores of platitude. In India, that’s usually the safe shores of incredibly ungrammatical platitude.

So congratulations, Kiri and Marcus, and be happy. I may be stuck on this Bhutanese mountainside when I should have been at your wedding, but let me just say: May Heaven’s Choicest Blessing Fall Upon Happy Couple. – Business Standard

]]> 4706 2009-10-03 03:16:44 2009-10-03 10:16:44 open open heaven%e2%80%99s-choicest-blessings publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6765#comments wfw:commentRSS http://zikkir.com/business/6765/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6765 syndication_item_hash 5f8d65ed9a72fefc5f90d9d8beb4b995 _encloseme 1 First among the culturati http://www.ethiopianreview.com/business/4705 Sat, 03 Oct 2009 10:18:58 +0000 http://zikkir.com/business/?p=6767 Sanjeev Bhargava produced hit films and ran successful businesses. Now he aims to make high culture popular again, he tells Kishore Singh

Sanjeev Bhargava orders a Carlsberg to my fresh-lime soda, an unlikely choice for someone who’s vying for the mantle of the country’s cultural czar, but he’s an unlikely contender anyway. Two decades ago, he might have had trouble casting himself in that role in the blockbusters he produced with not a little regularity, but when the film production company wound up in favour of a Maruti distribution agency, Bhargava turned corporate, vying for the big bucks and earning himself a neat little profit in the bargain.

“I want to see more mid-career professionals leaving their companies to work in culture,” he says now, decades after the making of alternate cinema and popular blockbusters — Aakrosh, Masoom, Jaane Bhi Do Yaaro — is fading from memory. But that was when he’d inherited too much from his father: a career in distributing and producing Bollywood films, but also blood pressure, and heavy drinking and smoking “that killed him when he was just 46”. It might have “killed me before I was 30”, he says now, the blood pressure a chronic presence, enough for him to complain about the salt in his soup to the waiter, but his mid-career course correction has him more at peace with himself.

ANANYA: THE PROGRAMME

At Purana Qila, from 7:00pm to 8:15pm

October 3
Odissi: Madhavi Mudgal and group (Delhi)

October 4
Mohiniattam: Gopika Varma and group (Chennai)

October 5
Kathak: Moumala & Monisa Nayak and group (Delhi)

October 6
Contemporary dance: Astad Deboo (Mumbai) with Manipuri drummers

October 7
Bharatanatyam: Rema Shrikant and group (Vadodara)

The younger of two sons, he took on his father’s mantle not because his brother was already at Oxford, but more because he was the more creatively inclined. “I was doing plays with Amal [Allana] and Faisal Elkazi, acting alongside Neena Gupta,” as a consequence of which he went on to complete and release 17 films his father had left unreleased, among them the hugely popular Khel Khel Mein and Jawani Diwani. But having gone through the highs of cinematic experience, Bhargava renounced it in favour of making smaller films “with my theatre contacts”: Shabana Azmi, Smita Patil, Raj Babbar, Naseeruddin Shah and Co. The way he set it up, Guru Dutt’s brother Devi Dutt would make the films, Bhargava would retain the international rights, and a new cinematic offering would become available.

The hugely successful Aakrosh came about as a result, and Bhargava discovered that the overseas market was very lucrative for his kind of films. This alumni of Modern School and St Stephen’s College would arrive at film festivals in Milan, Berlin, Cannes, Los Angeles, London or New York “with beta tapes in my backpack”, to “sell my films whether for £25,000 to one country, $3,000 to another”, even roping in the Australian Broadcasting Corporation to show its first Indian film. Marketing of rights for regional films followed. “I was young, enthusiastic, good at marketing,” he says, the finances going into producing, first, Masoom with Shekhar Kapur, his senior from Modern School, as director, and later the cult Jaane Bhi Do Yaaro.

That stint ended with the arrival of the video cassette, which destroyed film viewing in cinema halls, and Bhargava packed his bags to head for Jaipur, to handle the distribution of Maruti cars, a business he built with as much rigour. “By 1991, I realised that peace, meditation, theatre, music, everything had gone from my life, that the tensions were back, I was competing with others for money, and that was overtaking my personality” — scars from which time have accumulated like the marks of dissipation about his face — and so he left the business to the family and walked away. At some stage, he built himself a little home as a Himalayan escape, outside Ranikhet, but Seher, his company for the promotion and marketing of classical culture, was born.

Plays followed at the India Habitat Centre, he ran the Basant Utsav at India International Centre, did theatre productions and book readings, and began a network to suss out lesser-known but brilliant talent. “That’s when Mrs [Sheila] Dikshit asked me if I wanted to do something on a bigger wicket,” he recalls, “something associated with the care and protection of monuments”, and a partnership with Delhi Government was launched. Seher now does five branded events in five Delhi locations: Ananya, a festival of dance and choreography which begins its 2009 season this evening at Purana Qila, the hugely popular devotional Bhakti Utsav at Nehru Park, a Gurbani festival at Talkatora Gardens, the annual Qutab Festival, and in Central Park, a Saarc music festival. “The Chief Minister’s mandate was to make Delhi a good place to live in, to promote harmony and a democratisation of culture,” something he’s achieved with entry being free to performances, so “a maali might be seated next to the British high commissioner”, he points out.

While Seher manages the due diligence for sourcing the best talent, and never repeats artistes, Bhargava says his challenge is to promote “good quality, classical culture for newer, younger audiences, for travellers”, with one objective, “to create a brand out of Indian culture”, something educated, elite audiences might want to watch as much as the hoi polloi, instead of the Bollywood rubbish and mindless entertainment that television offers. “Culture is an intangible heritage,” he says, and requires quality marketing and packaging, something he insists on, diverting funds to “first class communication” instead of hiving it off to his own bottomline.

However unlikely, does he see himself as a successor to Pupul Jayakar or Rajeev Sethi? “We need more events to create more Pupul Jayakars,” he says, programmes that are not one-offs, and which happen when a city decides to dedicate itself to that effort, wooing audiences in the thousands, something that will sustain itself irrespective of governments or their heads, which at the moment is not a given despite their popularity — Bhakti Utsav will happen now in Kolkata and Chennai, while the Saarc music festival will travel to the Saarc countries. “We’ve been criticised for running free programmes,” he cribs, “but we’re not in the business to make money, we’re in it to change people’s tastes.”

Bhargava says the response to Ananya, for instance, has been “overwhelming, I get so much adulation from the city” only because “I do what I love”, and “think big, such as presenting the India@60 event at London’s Trafalgar Square. Yet, it’s the small things he misses, such as “acting — that power of directly communicating with audiences”, which he’s had to give up in lieu of organising instead. As a member of the Censor Board, he’s kept on his toes and in touch with the Hindi film industry, but for now he must exercise his team for preparing the capital for the Commonwealth Games next year.

Seher will not handle the opening or closing ceremonies, he says, but “20 locations will come alive with different flavours”. These might include his repertoire of festivals such as Ananya and Bhakti Utsav, but also a rock festival, a jazz festival, a raga programme, another of musical instruments, a photography show, an art event, these taking place at historic city locations as well as, perhaps, at Metro stations. “We have been asked to make Delhi a better destination,” he says, and then, “Culture makes everyone a better human being.” You’d better believe it.
- Business Standard

]]> 4705 2009-10-03 03:18:58 2009-10-03 10:18:58 open open first-among-the-culturati publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6767#comments wfw:commentRSS http://zikkir.com/business/6767/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6767 syndication_item_hash ba541664d04e6a731b74eab3f598c0eb _encloseme 1 Reading Pushkar http://www.ethiopianreview.com/business/4704 Sat, 03 Oct 2009 10:20:49 +0000 http://zikkir.com/business/?p=6770 The Pushkar Camel Fair is one of the most colourful annual festivals in India. Starting this year, a one-day literary event is being added to its busy calendar. On October 31, the Pushkar Literature Festival will bring together such writers as Namita Gokhale, Prasoon Joshi, Pavan Varma and the Urdu poet Sheen Kaaf Nizam over seven sessions that will explore the meeting points between contemporary literature and folklore, oral traditions, myths and legends. Mita Kapur, CEO of the literary consultancy Siyahi, helped initiate the event. Jai Arjun Singh speaks to her.

How did the idea for this literature festival come about? Why Pushkar?
Like most of Siyahi’s plans, the Pushkar Literature Festival was a spontaneous idea, its genesis being a friendly conversation with Manjit Singh, director, Rajasthan Tourism Development Corporation. He wants Pushkar to be the cynosure of international attention and asked me whether we would like to organise a one-day literary event. I said yes.

You played a big role in starting the Jaipur Literature Festival a few years ago. Will there be a different focus at the Pushkar festival?
It’s a special challenge to initiate a festival against a backdrop as colourful and spiritual as Pushkar. In planning our sessions, we have focused on the Indian voice, the Indian identity. There are questions about the great epic Mahabharata, there is a talk on what contemporary India means to a traveller, there is passion reflected in our poetry in Hindi as well as the delicate nuances of Urdu shayari. There is also a debate on how fiction and reportage work together, or how they clash with each other. We’ve tried to make the content well-rounded; of course, there is only so much one can do in a day!

Do you see this fest becoming as big as the Jaipur festival has become? Will it be possible to get a large crowd of book-lovers to this setting?
Pushkar has a pulse and rhythm of its own, it’s a riot of colour and chaos, it already pulls in a lot of people from all over. It’s a microcosm of so much that India as a country is. There will always be challenges, of course… starting with the finances.

What sessions are you particularly enthusiastic about?
Sheen Kaaf Nizam’s session with Prasoon Joshi will combine the lucidity and passion of Prasoon’s poetry with Nizam sahib’s shayari. Then, Veddan Sudhir from Udaipur is doing a Katha Kahani session, orally narrating folk tales and legends, fusing them with the current cultural, political, social scenario.

It will really be a matter of getting words and voices heard over all the cacophony that marks this week-long fair — there will be camel cart races, folk dances, impromptu bands of villagers breaking into songs in their dialects. There is a strange mixture of spiritual, emotional and commercial frenzy here, and there is one common thread that unites all those who come to Pushkar: it’s the most apt place to congregate to narrate stories and to engage in debates, because this place excites all sorts of sentiments.

In that sense, it’s a very good setting for a literary festival.

For more details on the festival, see the programme at www.siyahi.in/pushkar-literature-festival-2009-program.html – Business Standard

]]> 4704 2009-10-03 03:20:49 2009-10-03 10:20:49 open open reading-pushkar publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6770#comments wfw:commentRSS http://zikkir.com/business/6770/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6770 syndication_item_hash 53d1abc4b5de9276178eb61e7286eea2 _encloseme 1 Trials and tribulations http://www.ethiopianreview.com/business/4703 Sat, 03 Oct 2009 10:21:56 +0000 http://zikkir.com/business/?p=6772 In a well-researched book, Shoma Munshi argues that the bahu-soaps, far from being regressive, had strong women protagonists.

Two years ago, when I met Sakshi Tanwar, the lead “heroine” of Kahani Ghar Ghar Kii, on a “mandir” set in Film City, Mumbai, she was draped in a saree designed by Manish Malhotra. Sporting designer bangles and jewellery, she demurely held a pooja ki thali in her hands, ready to apply vermilion to her on-screen husband’s forehead — the same husband who was, unbeknownst to her, marrying her friend — the same friend whom Tanwar, as the on-screen Parvati, had befriended.

Confusing? Well, this was just one of the twists in the story that would, in subsequent episodes, ensure high TRPs for Star Plus, the channel on which this soap opera aired five nights a week (Monday-Friday, 10.00 pm).

If Indian television became an “industry” of sorts because of these soaps — a major contributor was Ekta Kapoor’s Balaji Telefilms, which first stepped in to create TV serials with mammoth budgets — what was fascinating was the level of employment that the industry suddenly facilitated. For the record, when I met Tanwar, her body double was busy enacting some of the scenes!

Like them or hate them, you could hardly ignore the impact these soaps had on Indian audiences. Which is why one must thank Kuwait-based Shoma Munshi for taking note of their role in her book, Prime Time Soap Operas on Indian Television, for which she spent time in Mumbai and Delhi, researching the producers, writers and cast of the soaps as they played out night after night in living rooms around the country.

That these were dramas that merit study to gain an understanding into why — and how — TV soap operas became so well integrated with society, is to state the obvious. It is a case that these shows weren’t flippant, as many people would like to believe. On the contrary, they borrowed episodes from our lives and relationships, from our very own kitchen politics, and packaged them in a way that gave them a glamorous, though undoubtedly exaggerated, hue.

Although the book claims to be a study of Indian soaps in general, it concentrates largely on three production houses which changed the way Indian audiences watched television. These are Balaji Telefilms, Sphere Origins and Director’s Kut, which have produced channel-driver serials like Kahani Ghar Ghar Kii, Kyunki Saas Bhi Kabhi Bahu Thi, Kasautii Zindagi Kay, Saat Phere: Saloni Ka Safar and Sapna Baabul Ka…Bidaai.

The author deftly manages to weave in interesting anecdotes from her own experiences on the sets of these serials — in Balaji’s office, for instance, where “most of the people working… were all young women. The men were mainly security staff… and serving tea and coffee to visitors”, and where “pictures of the god Balaji are at the entrance, and a flick of a switch allows shlokas to be sung as one touches the feet of the god”. The author writes, “If prime time soap operas are women-centric, then there’s no better proof than… Balaji.”

It is also her claim through the stories that these soaps unravel, that the women protagonists in them are hardly regressive, as most critics and audiences believe, but should be viewed as strong, or progressive. That tag might actually have suited the on-screen characters of the likes of Shanti (aired on Doordarshan, about a young girl who fights for her rights and those of her mother when she discovers that she’s an illegitimate child) and Tara (Zee TV’s moneyspinner that showcased a contemporary woman’s trials and tribulations). These women weren’t mangalsutra-clad queens — far from it. Munshi makes a case for the traditional women in the soaps upholding dharma, but at best the case is argumentative and hardly convincing.

It must be remembered that though these women are central to these shows, and while Munshi argues that “the chief women protagonists are represented not only as strong [but even] superhuman”, it remains that in numerous episodes, in the subplots, these women characters — particularly the “good” ones — suffer, cry and face the consequences of what others (the “evil” bahus and mothers-in-law, for instance) are doing to them. The scriptwriters make use of exactly these clichéd situations, the protagonists suffering somewhat intolerably till they rise to defend the honour of the family, whatever that sacrifice — a wayward husband, a son for whom justice must be meted in the hands of the mother — before her beliefs and, sometimes, her independence will be respected. Sandiip Sikcand, creative head, Balaji Telefilms, in an interview with Munshi, admits, while talking about the issue of “multiple wives” in these soap operas, that this is done “purely for drama. If TRPs are falling, we bring in another woman.”

It might be an original argument, but Munshi defends her position well, extracting details from those whose lives have been touched — and thus impacted — by these stories. From production heads to channel honchos to the authorities that rate these soaps, from advertisers to actors and writers, Munshi makes it clear that they have all benefitted as the soaps ruled prime time TRPs before, mysteriously, dying out in the face of changing audience interest.

There’s no gainsaying that the book is well researched book, nor that it provides insights into the psyche and vision of the soap makers. Ironically, the book comes at a time when DD completes 50 years, when reality television rules the roost, when soap queen Ekta Kapoor has moved beyond the letter “K” to get embroiled in a casting controversy (she got youngsters to lock lips at auditions), and when child stars and poverty have replaced the bahus as the subject for soaps and serials. There are many more “women of substance” on the new shows (though they continue to suffer in a patriarchal setup). Just like these soaps, who knows, maybe Munshi, too, will return with a sequel.

PRIME TIME SOAP OPERAS ON INDIAN TELEVISION
Author: Shoma Munshi
Publisher: Routledge
Pages: xv + 312
Price: Rs 595
- Business Standard

]]> 4703 2009-10-03 03:21:56 2009-10-03 10:21:56 open open trials-and-tribulations publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6772#comments wfw:commentRSS http://zikkir.com/business/6772/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6772 syndication_item_hash bb8f98c8b0f828988b25445b216677f4 _encloseme 1 Hello, China http://www.ethiopianreview.com/business/4702 Sat, 03 Oct 2009 10:22:58 +0000 http://zikkir.com/business/?p=6774 The People’s Republic of China marked its 60th birthday with a show of manpower. It was as spectacular and heartless as the opening ceremony of the last Olympics. These extravaganzas may be doing the nation a disservice abroad, by reinforcing stereotypes of the Chinese as obedient, mass-produced, and invisible as individuals; collectively, able to achieve feats of engineering and display; separately, merely well trained. What an appalling public relations burden to carry! At least India and Indians are defined in the foreign imagination by chaos, layers and infinite variety, which seems somehow more human and forgivable.

Both pictures are obviously more or less mistaken. But either because one is reading as an outsider or because Chinese writers themselves wish to represent their collective struggle for existence and agency through the microcosm of the lone protagonist’s life story, even in writings on China the individual appears to stand as an example, a representative of his species.

In travel writing the observer is, unlike the observed, forever in motion. What seems to work best with a vast and challenging subject like China is a sequence of snapshots — brief encounters with a place or person. Possibly the best travel book on China is Colin Thubron’s Behind the Wall (Heinemann, 1987), an account of the British writer’s journey through China in the mid-1980s, soon after the economic revolution began and China opened its doors to foreign visitors.

Because Thubron is so skillful, he allows the reader not only to look through his eyes but also to observe the observer learning and adapting. Thubron arrived with a smattering of language-school Mandarin and a broad knowledge of Chinese history and literature. Which is to say, he arrived with a set of questions — particularly relating to the Cultural Revolution, that Mao-led puritanical madness which engulfed the country for a decade from the 1960s to the 1970s. “[T]hat is the foreigner’s obsession in China,” he writes, just before his plane lands in Beijing. “At every moment, round every corner, the question Who are they? erupts and nags. How could they be so led? How could they do what they had done? And had they ever changed — this people of exquisite poetry and refined brush-strokes, and pitilessness?”

Desperately seeking a path to understanding, a key to unlock the door of history (and also perhaps because he is in an alien environment), Thubron’s early conversations with the Chinese he meets are oddly bloodless. Each question asked and answer obtained adds to his store of knowledge, but he insight he gains nowhere offers a simple affirmation of the facts he possesses about China’s then-recent history. So it is as if each individual he introduces us to is there not in his or her own capacity but as an exemplar, a representative — the woman on the plane, the man who wants to sell him old coins on Tiananmen Square, the man sharing his cable-chair, the man he meets in a public bath, the junior party official… Through these windows Thubron looks into China.

Only later, once Thubron has spent some time there, does the perspective invert: now, the people he writes about begin to stand out as individuals, their separate identity almost raw, as he writes it, where it has torn away from the Chinese norm. A woman he meets in Nanjing, for instance, the wife of an acquaintance from Beijing, who plays the piano and sings arias — signs of privilege, and reminders of her isolation. What she cannot do helps define what China is. Thubron’s unhappy detachment is never quite erased. Such a traveller must remain lonely: unmoored in the contemporary, he sees the weight of history in every encounter — even the most innocent and fleeting.

One might say that things have changed in China since the 1980s, but Behind the Wall offers a hard-won reminder that, even if the young have little memory of the past, history always has the last word. Read Thubron to begin to understand China today. – Business Standard

]]> 4702 2009-10-03 03:22:58 2009-10-03 10:22:58 open open hello-china publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6774#comments wfw:commentRSS http://zikkir.com/business/6774/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6774 syndication_item_hash 58d9eeb602c73c0e8a07ad032077890e _encloseme 1 CHESS #607 http://www.ethiopianreview.com/business/4701 Sat, 03 Oct 2009 10:24:04 +0000 http://zikkir.com/business/?p=6776 1

The Super K rematch in Valencia had the oddest result. Kasparov won the rapid+blitz match 9-3, which is exactly the margin predicted by their ratings. An exact “fit” of result-to-prediction is as rare as a coin coming up heads exactly 50 times in 100 tosses. In this instance, it seems even more unlikely, since GK’s last rating dates back to Q1, 2005 and both ratings are from long time-controls.

The 13th world champion has maintained form and sight despite being in his fourth year of retirement while the 12th champion has slumped a lot in the last two years. Karpov’s clock hassles are unbelievable for those who recall his awesome blitz ability in his prime. At 58, it seems Anatoly Evgenyvich no longer trusts his instincts, which is crippling when there’s no time to calculate.

At the same time, Nigel Short was grinding out a 3.5-2.5 victory against Zahar Efimenko in Mukachevo. This was a decidedly less glamorous encounter but it saw hard fighting chess of very decent quality. The Englishman justified his higher rating but he had to work for it.

The Second Pearl Classic in Nanjing started just as K-K, Short-Efimenko, ended. The former Chinese capital on the Pearl River is hosting its second super-strong double round-robin alongside a Women’s Grand Prix. The hall is festooned with unforgettable slogans like “Harmonious Win-Win Embrace the World”, “We Are Family Civilised Nanjing”, “Intelligent Life Nanjing we Gather”, and “Masters we Admire, Do not move around freely or make a noise”.

Kasparov’s protege Magnus Carlsen started with a bang, blasting Peter Leko and defending champion Veselin Topalov off the board in the first two rounds. After round three, Carlsen leads with 2.5, ahead of Wang Yue, Radjabov, Jakovenko, (all 1.5) and Topalov and Leko. Incidentally nobody else has won a game yet in the DRR. In the 12-player Women’s GP, Nana Dzagnidze leads with 3/3.

The Diagram, WHITE TO PLAY, (Carlsen Vs Topalov, Nanjing 2009) is the launch pad for a mating attack. White has a healthy extra pawn but rather than rely on endgame technique, he goes for the throat with 30.h5! Rxf2 31.hxg6 h6. One idea is 31…hxg6 32.Rxg6+! Kxg6 33.Qg3+ Bg5 34.Qxf2 stripping the king naked.

After 32.Nd1 Rxc2 33.Nxf2 Rc8 34.Ng4 Bg5 35.Nf3! White threatens 36.Nxg5 hxg5 37.Qe3 and 35…Rc1+ 36.Rxc1 Bxc1 37.Ngxe5 dxe5 38.Kxc1 leaves a two-pawn edge. So, 35…Nc4 36.Nxg5 hxg5. Here Carlsen missed the instant 37.Qh3! Nd2+ 38.Ka2 Rh8 39.Qxh8+! Kxh8 40.Rh1+ Kg7 41.Rh7+ Kxg6 42.Rxd7 and instead played 37.Ne3 Nxe3 38.Qxe3 Qa4 39.Qxg5 Qxe4+ 40.Ka1 Re8 41.Rc1 (1-0). There is no perpetual and no resources to stem a mating attack with Rc7, Qh5/h6, etc. – Business Standard

]]> 4701 2009-10-03 03:24:04 2009-10-03 10:24:04 open open chess-607 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6776#comments wfw:commentRSS http://zikkir.com/business/6776/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6776 syndication_item_hash 0c06f31daa54c07ec223772c33458bae _encloseme 1 Nostalgia house http://www.ethiopianreview.com/business/4700 Sat, 03 Oct 2009 10:25:24 +0000 http://zikkir.com/business/?p=6778 When building a home in Gurgaon, Amrit Kiran Singh chose to recreate a place of childhood memories and happiness, writes Kishore Singh

For all the marketing push and pizzazz he brings to his job, as head of Brown-Forman in India, promoting Jack Daniel’s bourbon in a nation of Johnnie Walker scotch drinkers, Amrit Kiran Singh, like his house, is probably less wunderkid and more a relic of an age when leisure and grace were part of an inherited lifestyle. If he hasn’t outgrown those kinks, blame it on nostalgia, or a childhood well lived and fondly remembered.

Gurgaon, India’s millennium city if ever there was one, is an unlikely place to imagine a customised house, yet, in pockets amidst the highrise and the commercial glasshouses of international giants, a few bungalows bravely attempt the vanguard — none more so than Dharfari House, Singh’s ode to the fading tradition of zamindari and a village by that name in eastern Uttar Pradesh, where once his grandfather and then his father and now he commands orchards of litchi and fields of ripening sugarcane, wheat and corn.

That echo of Dharfari, which lives in his heart, has now found roots in the National Capital Region, where lamps and beds, a dressing armoire and even a writing bureau from that original homestead, have found a new home — but that is to get ahead of our story. Singh, who lived in a larger house, also in Gurgaon, before he began to work on his current, new home into which he moved last year, knew that the house he built for himself and his wife — their two girls having moved away — would need to fulfill a rekindled interest in the Dharfari of his childhood.

He did that by employing not an architect who would simply “build a house that looked like any other house” but a structural engineer who built bridges for a living. “I travel a lot,” says Singh, relaxing in his formal living room, with its deep sofas, “I would come back with lots of pictures” — visual references of the kind of house he wanted, a place with large bedrooms that got a lot of light, but a home “that shouldn’t ever get dated”.

Easier said than done, but not all that difficult either. The old furniture — both that which he had resuscitated from Dharfari, but including some he had designed earlier — helped. “Nothing in this house is modern, apart from the television, or the refrigerator,” Singh says, “even the tap fittings have porcelain levers, not some fancy ones.” To that end, parts of the ceiling are two storeys high, creating an illusion of space, and the doors are nine feet in height, while the frontage of (bullet-proof) glass that overlooks the garden makes no allowance even for drapes or blinds — something his wife must have objected to? “Fortunately, no,” smiles Singh, “because once she’s decided on something, she can be quite obstinate about it.”

Obstinate or not, she enjoys a facet of the house that Singh insisted on, and which till even a few decades ago was a part of Indian homes — the verandah, a space where you can soak in the sun in winter months, enjoy the monsoon rain, or sip a cup of morning tea. “From that level,” says Farah of their bedroom verandah, “we see only the greenery”, not the skyscrapers that dwarf them; a place where her husband goes through the papers, or sits in repose, a book on faraway Lucknow in hand.

That he likes reading is evident from the first floor library with its Chesterfield sofa, huge armchairs, and shelves full of leather bound classics — everything from William Dalrymple to Arvind Adiga, including bestsellers, though what he enjoys most are historical sagas and biographies and autobiographies, proof of which are the lithographs of Lucknow which are grouped together on one wall. Below the library is the family lounge with its family pictures, but it is in the library that Singh does the paperwork that is such a part of modern life, before entering his bedroom with its charming four-poster bed, its only oddity the en suite bathroom that is modern and capacious enough to be part of a presidential suite in a luxury hotel.

At some stage during our conversation, Singh’s Hungarian hunting hound comes into the room — till recently it was the only one of its kind in India, brought from Budapest, but an expat banker has since brought two with him — a lonely dog ever since two other family dogs, attacked by cobras soon after they had moved into Dharfari House, died. “The hound stayed with me at the office for eight months,” laughs Singh, because his wife would not allow the family more than two dogs at a time, though she finally relented and the ceiling was relaxed to make room for three dogs. He met with resistance, however, when he wanted to replicate the huge glass walls of the drawing room in the kitchen, intending to overlook the courtyard garden and lily pool. A fond cook, she laid her foot down, telling him it was a working place, and he was not to be allowed his whims.

The dining room, even though small, is not claustrophobic because of its double-height ceiling, a first floor lobby opening over it, and a shaft to one side that has been converted into a cellar. Though his more delicate wines are stored in a closet-like space next to it, the “cellar” consists of racks for the wines, and though there is an air-conditioner built into it, the attempt is more aesthetic than functional — something he reluctantly accedes. The cellar ceiling is glass, flooding the dining room with light; even part of the bathroom ceilings on the first floor are of glass “so the quality of light in the bathrooms is amazing”, he gloats.

A recent addition to the house is Singh’s Mercedes-Benz two-seater SLK, since it’s just the two of them at home now, though he says, “We like having people in the house.” A bar to one side of the room attests to that, even though “it’s not the swish kind” Singh almost apologises, but in keeping with his temperament, meant for intimate, casual, friend-filled evenings; a vat to one side, functioning as a table, attests to a time when one of the whiskies he was associated with, came in these wooden barrels.

The couple’s collection of art is eclectic — black and white graphic zebra portraits along the staircase, some modern kitsch, but also happy watercolours by Goa-based artist Subodh Kerkar, a Shuvaprasana, an interesting

M F Husain, and a Thota Vaikuntam that needs a clean-up since the artist executed the charcoal drawing on canvas.

Singh says he would like to do something in Dharfari, to give back to the people there, once he retires — perhaps showcase a slice of rural life for urban dwellers, complete with the peace there, and the litchi orchards. As a nod to that, he’s just planted a litchi sapling near the gate, while at the entrance to the road on which Dharfari House has been built, he has placed a Buddha statue from his ancestral village — its location is close to the region’s Buddhist heartland — with words intended to soothe those who live in the colony: “May you find peace in your chaos.”

In Dharfari House, the Singhs, at least, have found their peace. – Business Standard

]]> 4700 2009-10-03 03:25:24 2009-10-03 10:25:24 open open nostalgia-house publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6778#comments wfw:commentRSS http://zikkir.com/business/6778/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6778 syndication_item_hash eaf6b7707d1d867e3aaeecc51d04379f _encloseme 1 Civic duty http://www.ethiopianreview.com/business/4699 Sat, 03 Oct 2009 10:27:00 +0000 http://zikkir.com/business/?p=6780 In my mind

Last week, I actually met someone who runs a Honda Civic Hybrid on a regular basis. He bought it by paying the discounted price (roughly Rs 15 lakh, still) when Honda decided to clear out the stock of 200-odd Hybrids that was not moving at the Rs 21 lakh list price. The man in question was looking for a suitable second car and stumbled upon the idea of owning something “truly modern.” So how was the experience? Fuel consumption figures are not what Honda claims, according to the owner. But what really gives him the kick is the fact that he is operating a technological marvel that does not pollute much. “The running costs are really low — especially when I take it on inter-city runs,” he added. According to him, the fit and finish and the paint job is much better than anything locally produced — other Civics included. At the end of the day, I can’t help but say that he did the right thing — the revamped Civic with all options retails at Rs 15 lakh today and is not half as economical as the “fully imported” Hybrid.

In my garage

Twin-test contenders for an upcoming story in Business Standard Motoring filled up my parking slots this week. The new Nissan X-Trail came first and stunned me with its energetic 150 bhp diesel motor. This is a small engine compared to the older model (2.2-litre) but features the brilliant six-speed gearbox. How good these specs are can be understood only when you compare it to its (slightly less expensive) competition. The Ford Endeavour that I drove home the very next day displaced all of 3000cc to develop 155 horses. That is 1000cc more for a 5 bhp increment! It is another matter that the Endeavour with three rows of seating was loved by most of my friends over the X-Trail, which is a strict five-seater. Read more about how these cars fare in off-road conditions in the November 2009 issue of Business Standard Motoring .

Car of the week

All set to reward yourself with a brand new Mercedes S-Class, Audi A8 or a BMW 7 Series? Well, your choice just got widened. Rs 1.4 to 2.2 crore can get you the brand new Panamera and the four-door Porsche comes in three trims for India. The Panamera S and the 4S feature the 4.8-litre direct injection petrol good for 400 bhp while the top-of-the-line Turbo develops 500 bhp thanks to two turbochargers. Now start learning how to pronounce “Porsche”!

Bike of the week

My very own Enfield Thunderclap is back. To those in the dark, this is a one-off modification of a Royal Enfield Thunderbird — made to look and run like a racing British single from the fifties. Kyle, the official BSM spanner-head, tuned the machine, gave it a new carb, new indicators, mirrors and added black racing stripes on the tank. And she is running like a dream — complete with characteristic waste-gate explosions. Cost for the work? “Belated happy birthday,” said Kyle! Well, thank you!

Question of the week

How much extra money can you spend on a Porsche Panamera by ticking all the options boxes?

Well, the figure is over Rs 40 lakh. – Business Standard

]]> 4699 2009-10-03 03:27:00 2009-10-03 10:27:00 open open civic-duty publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6780#comments wfw:commentRSS http://zikkir.com/business/6780/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6780 syndication_item_hash 1dd3a2dc1e43cab4d8dd09b6eda67b24 _encloseme 1 Electric shockers http://www.ethiopianreview.com/business/4698 Sat, 03 Oct 2009 10:29:18 +0000 http://zikkir.com/business/?p=6782 If electric cars are the future, here are the key ones from the Frankfurt Motor Show

What are they?

Reva NXR and Reva NXG

What can they do?

The NXR is available with two battery options — Lead acid and Li-ion. The lead acid model, called the City, is powered by a 17 bhp (13 kW), 5 kgm electric motor while the Li-ion NXR, called the Intercity, gets its motion from a more grunty 25 bhp (25 kW) motor that puts out 9 kgm of torque. A full charge takes eight hours for both battery types. Range for the City is 80 km and top whack is 80 kph while the Intercity’s range is 160 km and is slightly faster with a pinnacle speed of 104 kph. The Reva NXG is a hotted-up and stylish model, slated for production in 2011. The NXG will have a range of 200 km on a single charge and a top speed of 130 kph. The motor’s thirst will be quenched by a Li-ion phosphate battery pack.

Looker or cooker?

The NXR is quite appealing but the NXG is the more attractive of the two.

Any tech stuff to boast about?

Both the NXR and the NXG get an integrated communication console, rear camera, dual airbags, impact sensing door unlock and keyless entry and operation. Dual charging ports will cater to either regular or fast charging requirements but the regenerative braking system will make sure these are used less often.

What is it?

Volkswagen E-UP

What can it do?

For starters, it can be charged in your warm garage into the same 230v outlet that powers the weed-wacker. It would take about five hours to get to full charge and this is good enough for around 100 km. The electric motor produces a maximum of 80 horses (60 kW) and torque of 21.4 kgm — good enough for a claimed top speed of 135 kph.

Looker or cooker?

It certainly wasn’t the best looking electric car at the show, but it’s quite dinky and cute-like.

Any tech stuff to boast about?

Quite a lot, actually. The batteries are housed in the underbody of the E-Up in a crash-protected tray such that the weight of the entire system is distributed efficiently and the cooling systems are placed in at the front of the arrangement. Called the ‘Integral Drive’, the powertrain comprising the electric motor, transmission and differential are combined together and this allows a unit that is both compact and has a relatively lower weight of about 140 kg. The E-Up is also fitted with solar panels on the roof. These panels convert solar energy into electricity which is used to recharge the batteries and when the car is parked, they provide the juice to power the ventilation system to keep the passenger compartment cool. And to complete the techno blitzkrieg, the E-Up has something called the Human Machine Interface (HMI). This HMI is basically a touch screen that provides assistance and monitors various parameters of the car such as charge status of the batteries, prompting you about the closest recharge centres and the like.

What is it?

Renault Fluence Z.E. Concept

What can it do?

The motor is a 95 bhp (70 kW) electric unit with 23 kgm of torque. Renault claims the Z.E. is good for a range of 160 km on a single charge.

Looker or cooker?

Looker, definitely.

Any tech stuff to boast about?

The Fluence’s Li-ion batteries can be charged in three distinct manners. The first is a standard charge that would take between four and eight hours. The second is a lightning quick charge of about 20 minutes and the quickest is the 3-minute ‘Quickdrop’. This is basically a rapid battery exchange system where in the user drives up to the station and the drained battery is swapped for a charged one in just three minutes. Although not confirmed, the Z.E. might also feature regenerative braking and solar panels for additional input of energy into the batteries. And you can bet on it that some Nissans will share motive power with the Fluence when it gets into production. This is a full sized family car that’s designed to be practical. What is it?

Audi e-tron

What can it do?

The question ought to be: what can it not do! Two motors each on the front and rear axles combine to produce 313 bhp (230 kW) and nearly 459 kgm of torque. So it’s no surprise that this electric missile shoots off from 0 to 100 kph in 4.8 seconds and 60-120 kph in just 4.1 seconds. Top speed, thankfully, is limited at 200 kph. The range is approximately 248 km.

Looker or cooker?

Looker, looker, looker!

Any tech stuff to boast about?

Let’s start from the way the e-tron puts all that power to the ground. The torque from the four electric motors is distributed as and where required which provides excellent driving dynamics and precision and nimble handling, especially while cornering. A first for any automobile, the interior is heated with a heat pump — something that’s used almost exclusively in buildings as of today. What it does is that, instead of using the heat generated by the powerplant, it converts mechanical drive into heat energy. Then, the ‘Car-to-x communication’ completes this Audi and is an information processing system which will reduce energy consumption, increase safety and efficiently regulate traffic flow. Highly efficient LED technology is used in all the lighting systems which brings down power consumption quite significantly. The headlamps automatically adapt their illumination according to the weather conditions, all thanks to a camera linked to a computer that measures the visibility condition. Liquid cooling of thebatteries ensure optimal performance at all times. Regenerative braking technology also makes the e-tron its home. Phew! – Business Standard

]]> 4698 2009-10-03 03:29:18 2009-10-03 10:29:18 open open electric-shockers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6782#comments wfw:commentRSS http://zikkir.com/business/6782/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6782 syndication_item_hash 678390f80be2a1ab336445e97a8687fd _encloseme 1 The modern day Mahatma http://www.ethiopianreview.com/business/4697 Sat, 03 Oct 2009 10:30:12 +0000 http://zikkir.com/business/?p=6784 They say there are more photographs than there are bricks in the world. Such vast exposure to images seems to have trained us to read images in formulaic ways. Thus, in a single glance, we crown what we see into “types”. Debanjan Roy plays on this shortcut to seeing, creating work that we are able to effortlessly classify as working in the space of binaries.

His new series exemplifies this well. In each one, Gandhi, the maestro of frugality and peace, is recast as living the urban middle class Indian life in the 21st century. Thus, a bust of Gandhi shows him with earphones and a mike, as if he were skyping. Another shows him, dhoti draped around him like a beautiful shield, lying on a recliner. Or this one, where Gandhi focuses his concentration on his laptop. All these works are a glossy red, and small enough to function as teasingly ticklish sculpture on the tables of our living rooms, seducing us with their visual beauty. By subverting given notions of Gandhi, Roy makes it easy for us to read into these works as mocking the idea of (a finally) Shining India.

It’s hard not to, and there is some sense in such simplistic reading. Both history and our current reading of Gandhi — 60 years after his death — compel us to make this binary, self-flagellating reading — frugality versus consumption — a mandatory stop in the viewing trajectory.

Yet, the restlessness of Roy’s work goads us to take a second look. When we do, it starts becoming increasingly clear that Roy also uses these devices as complex conceptual tools to identify drivers of new social norms. Gandhi becomes the social scientist’s baseline study, the axis along which it is possible to plot the shifts. In this reading, Gandhi is not the wise voice from the past chastising us for being self-delusionary about “progress”. Instead, he is the body, the living creature that contains the shifts while simultaneously marking them. He stays willingly robed in the stereotypes of himself, as part of this exercise. The iPods, laptops, the Internet — all these are new means of connecting with others, while also carving out a me-space.

The ideas we link with Gandhi have taken recognisable new avatars, Roy suggests. Our everyday reality seconds that. Non-violent mass protests have shifted online, on sites like Facebook, where several thousand people protest, as it were, with the click of a mouse. On this same site, it is possible to report any violence to political correctness. Fighting for freedom — not for countries but individuals incarcerated in them — is now an entirely different community effort — recall the relentless online petitions to free activist Binayak Sen in India, or Aung San Suu Kyi in Burma. And this year, one of Time magazine’s environmental heroes is a blogger on climate change.

Roy’s Gandhi series, therefore, doesn’t gaze at the gap between our home-grown global icon and our own daily lives, but marks the distance we have covered to morph into the contemporary society we are. – Business Standard

]]> 4697 2009-10-03 03:30:12 2009-10-03 10:30:12 open open the-modern-day-mahatma publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6784#comments wfw:commentRSS http://zikkir.com/business/6784/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6784 syndication_item_hash 6bee763abc59ced20e58c397c30eb294 _encloseme 1 Short and sweet http://www.ethiopianreview.com/business/4696 Sat, 03 Oct 2009 10:32:07 +0000 http://zikkir.com/business/?p=6786 I intend to buy a petrol driven premium hatch and I have shortlisted the Maruti Suzuki Ritz VXi, Hyundai i20 Magna and the Fiat Grande Punto 1.2 Dynamic. Please advise which one of these I should go for considering among other things driving comfort, after-sales service and resale potential.

Sandhya Sathe, via e-mail

The Suzuki Ritz is a modern car with a modern powerplant, the Hyundai i20 is a talented B-segment car in the traditional mould while the Fiat Grade Punto is a good looking car with a slightly underpowered engine. If you have to have the best all rounder, the Hyundai i20 should win. It looks good, is spacious, has thoughtful features, while it is easy to drive. Hyundai’s after-sales service apart, it will offer you a good resale value too.

Comfort quotient

I wish to buy a luxury car and have narrowed down my choices to the Honda Accord and the Mercedes-Benz C 200K. I want a manual transmission car that is good for city driving and the occasional highway ride. It should be comfortable and easy to drive too. Please suggest which of the two is best suited for my needs.

Anil Singh, via e-mail

If your car will be primarily chauffeur-driven, we suggest the Accord should fit your requirements to the T. It’s large, comfortable and easy to drive and maintain. However, if you will do more personal driving, then the C200K is the better option. It’s more involving to drive, has more compact dimensions suitable for city driving and is comfortable too at the same time, thanks to a very good suspension setup.

Segment-ation

Which of the following cars do you think make for a good all-round D-segmenter. The cars include: Volkswagen Jetta and Passat, Skoda Superb, Mercedes-Benz C200K and the BMW 320d. I want a car that’s less of a hassle to maintain as well as has a comfortable rear seat. Kindly advise.

Aniruddh, Mumbai

While the Skoda Superb does tick all the right boxes, Skoda have still some way to go before their after-sales setup ranks among the best. The next best option for you is the Passat. It’s comfortable both at the front at the rear, has a good diesel engine that is powerful, yet frugal and Volkswagen’s after-sales service is improving. The C-Class Mercedes is a comfortable car across all aspects while the BMW is cumbersome in the city to drive, but is a brilliant driver’s car. Among these, if you want an all-rounder, check out the Passat. – Business Standard

]]> 4696 2009-10-03 03:32:07 2009-10-03 10:32:07 open open short-and-sweet publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6786#comments wfw:commentRSS http://zikkir.com/business/6786/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6786 syndication_item_hash caeb443d03b92d02dfca629245902ccd _encloseme 1 Rio de Janeiro wins bid to host 2016 Olympic Games http://www.ethiopianreview.com/business/4695 Sat, 03 Oct 2009 10:32:50 +0000 http://zikkir.com/business/?p=6788 4695 2009-10-03 03:32:50 2009-10-03 10:32:50 open open rio-de-janeiro-wins-bid-to-host-2016-olympics publish 0 0 post _edit_last 1 _edit_lock 1254623228 Sunil Sethi: Marketing the gifts of gods http://www.ethiopianreview.com/business/4737 Sat, 03 Oct 2009 10:53:05 +0000 http://zikkir.com/business/?p=6790 Happy Daughter’s Day. This landmark event, in case you hadn’t noticed, has just gone by on September 27 and was being tom-tommed in shops crammed with advance cargoes of festival goodies. Coming up are a host of other happys—Happy Friendship Day, Happy Mother’s Day and the famous lovers’ tryst in February, under the patronage of St Valentine, that continues to raise the hackles of ultra-conservative Indians.

If you live in America, the Valhalla of capitalism where corporate retail feeds on mawkish emotion, there is also Teacher’s Day, Daddy’s Day, Secretary’s Day and even a Take-Your-Daughter-to-Work Day. This last event, American friends say, is when working moms drag their babes, from toddlers to teenagers, and lure them with gifts, to demonstrate what the postmodern female workforce is capable of. The Indian market is just learning the tricks of the trade. A family culture like ours will soon be celebrating Nana-Nani and Dada-Dadi days.

And why not, social analysts may argue, when the pace and pressures of urban life are a strain on family ties and other relationships. The odd part, though, is that these celebrations did not exist a generation ago. My parents would have bridled at the thoughtless expenditure that now comes coated in the spiritual saccharine of kinship. But then they were the kind of people who disliked any form of outward display, even at birthdays, in the firm belief that all anniversaries were purely family events. (“Holiday from what?” my father would ask quizzically if one of said how badly we needed one.)

New research, however, shows that Indians are not only taking to new-fangled western celebrations like ducks to water but also enthusiastically reinventing and propagating traditional rituals. In her recent book The God Market: How Globalization is Making India More Hindu, Meera Nanda, a philosopher of science based in the US, offers a gamut of argument and example to show how urbanisation, economic liberation and prosperity are making middle-class Indians more devout. Educated Indians in cities and small towns are becoming more religious than the less educated in villages; according to the 2001 census the number of places of religious worship in the country (2.5 million) far outstrips schools (1.5 million) and hospitals (75,000). In Delhi alone, the number of registered religious buildings has shot up from 560 in 1980 to 2,000 in 1987.

The rising religiosity is reflected in the growing number of pilgrimages. A recent NCAER study showed that “religious trips account for more than 50 per cent of all package tours, much higher than leisure tour packages at 28 per cent.” In 2004 more than 23 million people visited Tirupati and 17.25 million trekked to the mountain shrine of Vaishno Devi.

Yagnas, mahurats and pujas, new gods and goddesses, vaastu masters, healers, religious cults and rituals dominate urban landscape, with the “service providers” of the spirit bringing succour to the alienation, insecurity and frustrations of a prosperous middle class. In some ways the everyday manifestations are visible around us, from examples of blatant land grab in the setting up of wayside shrines, all-night jagrans set to Bollywood item numbers and the fashionably hip faces of global gurudom (Sri Sri Ravi Shankar, Deepak Chopra etc) and their gentrified empires of godliness.

More intriguing is what Meera Nanda describes as a state-political-corporate nexus in promoting the surge of religiosity. National and regional parties have been unabashed in employing religion as a vote-catching mechanism but, increasingly, state subsidies and corporate management support is channelled into temple-building and running religious institutions. The Delhi and UP government gave away 100 acres at throwaway prices to build Akshardham temple. The Art of Living ashram in Bangalore is built on 99 acres of government land, and Gujarat and Rajasthan have spent fortunes of taxpayers’ money in land gifts, temple renovations and training of priests. Just think of the gifts, new and old, that God has in store for you in a season of conspicuous spending. – Business Standard

]]> 4737 2009-10-03 03:53:05 2009-10-03 10:53:05 open open sunil-sethi-marketing-the-gifts-of-gods publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6790#comments wfw:commentRSS http://zikkir.com/business/6790/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6790 syndication_item_hash c919466e4c97723adc91ad4e193eeb33 _encloseme 1 V V: Keynes – The Master returns http://www.ethiopianreview.com/business/4736 Sat, 03 Oct 2009 10:54:15 +0000 http://zikkir.com/business/?p=6792 Unlike the Chicago economists under Milton Friedman who argued that the unrestricted operation of private enterprise—seen as the most efficient form of economic organisation—was essential for economic development and that prices should be determined purely by market forces and inflation controlled by means of controlling money supply, Keynes, the most influential macroeconomist of the 20th century, had argued in his classic work, The General Theory of Employment, Interest and Money, that there is uncertainty in the world—uncertainty that cannot be reduced to statistical probabilities and has come to be described as “unknown unknowns.” This irreducible uncertainty, he said, lay behind panics and bouts and the instability of market economics that we see around us today. Robert Skidelsky, in his three-volume study of Keynes (1994), reminded us that the master had warned us against relying on econometric models of his own theories:

“One has to be constantly on guard against treating the model as constant and homogeneous. It is as though the fall of the apple to the ground depended on the apple’s motives, on whether it is worthwhile falling to the ground, and whether the ground wanted the apple to fall, on the mistaken calculations on the part of the apple as to how far it was from the center of the earth.”

To make the three-volume study more accessible to a wider audience because Keynesianism is experiencing a revival at this time of financial crisis, Skidelsky has provided a condensed version, Keynes: The Return of the Master (Penguin India distributor; Special Price: Rs 550) that should interest anyone who has been affected by the global crisis—and that includes a great many even here.

First things first: Who’s to blame for the current crisis? As usually happens after a crash, the search for scapegoats has been intense, and many contenders have emerged. Wall Street swindlers; predatory lenders who sold loans to people who didn’t have the capacity to pay back; the Securities and Exchange Commission (which is supposed to be a watchdog); Alan Greenspan, the Treasury Secretary who kept interest rates too low; speculators who spread negative rumours; “experts” who gave wrong advice in the sense they lost all ideas of common sense. How could you take huge loans when you didn’t have the capacity to return them within a reasonable time? Or were they thinking of Keynes who famously said you needn’t think of the long term because in the long term we will all be dead?

All these explanations have some truth in them. But of all these, it seems it was Greenspan’s very low interest rates for far too long that was the single biggest cause of the housing bubble: people borrowed at ridiculously low rates, hung on to the properties which appreciated 15-fold and then hoped to make a killing by selling it off. The current buzz was that property always appreciates; its value never drops. But it did and buyers didn’t come because they couldn’t raise the money; they could only do so by selling their properties but which had few buyers because it was a tight money market now. More introspective buyers would add that there were other explanations: people got greedy, they heard what they wanted to hear instead of keeping their ears and eyes open on all the foreclosures around them.

But most bubbles are more than a product of bad faith, or incompetence or being made a sucker of by the broker; the interaction of human psychology with a market economy practically ensures that bubbles will form. To that extent bubbles are perfectly rational. After all, a capitalist society operates under the presumption that adults are rational, self-determining individuals who can make sensible choices between competing goods and maximise their chances of happiness. But this is a bizarre assumption because in reality we are desperately open to being swayed in unhelpful directions by a mere glimpse of a picture. In real life it is extremely hard to hold on to a sense of our own needs when our desires (to make a quick buck) are continually inflamed.

All this still doesn’t answer the question: how the world got into this mess? Probably because the answer will be different in every case and we may need to delve into history to make sense of the financial chaos. But Keynes’ core insight that Skidelsky brings out in a clear and simple language without the paraphernalia of heavy-duty scholarship is that the world is a complicated place that cannot be reduced to a set of equations. The only certainty is a total uncertainty as the Jewish proverb puts it, “If you wish God to smile, tell him your plans.” – Business Standard

]]> 4736 2009-10-03 03:54:15 2009-10-03 10:54:15 open open v-v-keynes-%e2%80%93-the-master-returns publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6792#comments wfw:commentRSS http://zikkir.com/business/6792/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6792 syndication_item_hash 2e78f207d0a144234e0f42ed1647ab81 _encloseme 1 A little give and take http://www.ethiopianreview.com/business/4735 Sat, 03 Oct 2009 10:59:35 +0000 http://zikkir.com/business/?p=6794 When the market spoils you for choice, our advisory on tips and gifts goes a long way in helping you select what’s most extraordinary.

This is one time of the year when Uncle Scrooge isn’t invited to the party, especially since this festive season has swooped down to catch us (almost) unaware of the change in the weather but conscious that the gloom of economic recession is fast fading. Last Diwali was a downer, but this time round, thankfully, things are looking up.

Which is why, when we went window shopping, we couldn’t control our excitement. The goods are spilling out of the stores, silver is gleaming on tables, the tea-lights are incandescent, and the footpaths are brimming with eager shoppers. It’s Diwali, it’s wedding season, it’s the time of year when we swipe away our fortunes looking for that elusive gift that means more than just the value of money. No wonder the joy is in tracking the most perfect present: Will it be as ephemeral as a cruise or a holiday, as enduring as a work of art, or something as tangible (and heart-stopping) as a car or bike? Or perhaps a little more conventional: Jewellery, maybe, or home accessories, a case of your favourite tipple, or the watch you’ve set your heart on? It may be the thought that counts, but plan your budget anyway: It counts for a little more!

Sail lavishly, please
BESPOKE YACHT HOLIDAYS Rs 35 lakh

1
Gift a tailor-made, week-long exotic holiday on a chartered yacht. Pick one of the five-star yachts from OceanStyle, the international yacht charter service provider, available from Mumbai. You could head to Alaska, Australia or the Mediterranean. Italian beauty Ability can carry nine guests in four cabins and has a crew of five. OceanBay, a Pune-based company does customised holidays too.

On the drive
PORSCHE’S PANAMERA Rs 1 crore onwards
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The sedan club of motown has just got its snazziest and luxurious member: Porsche’s Panamera. The super luxury car is available in three variants, (S, 4S and the Turbo) and while the price range begins at Rs 1.44 crore, the Turbo costs Rs 2 crore. If you wish to be more indulgent and invest in accessories, be prepared to shell out Rs 50 lakh over and above the basic price.

RS 10 LAKH TO RS 1 CRORE

The ultimate bull run
RAJESH KUMAR SHARMA’S TWENTYTWENTY SCULPTURE Rrs 18 LAKH

A 550-kilo gift isn’t exactly lightweight, but if you’re on the lookout for something beyond the ordinary, this bronze sculpture that epitomises the spirit of a young nation, could be perfect. It’s available at New Delhi’s Gallerie Nvya — but order the truck first!

No ordinary vroom
HARLEY-DAVIDSON Rs 35 lakh
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Now that Harley-Davidson has an official presence in India, we would recommend its Electra Glide version. This comes with an awesome 110 cubic inch V-twin engine and what’s built into the bike is a radio, passenger backrest, heated handgrips, custom paintjob and ample storage space.

Luxury in writing
MONTBLANC’S GANDHI EDITION Rs 11.39 lakh

Montblanc’s new range of limited edition pens are an ode to Mahatma Gandhi. These have 18k gold, rhodium-plated nibs that display intricate, hand-engraved depictions of Gandhi. Only 3,000 such pens are available and boast of mother-of-pearl finish, white gold and fine embellishing.

Worth watching
JAQUET DROZ’S LE HEURE CELESTE Rs 15.30 lakh

This timepiece is handcrafted in white gold and a generous sprinkling of diamonds and comes with a gold watchcase . It’s haute couture in jewellery watches, but for the women in yur life, don’t forget Burberry, Armani, Breguet, Omega and Longines too.

RS 1 LAKH TO RS 10 LAKH

Staying in luxury
SUITES AT AMAN, NEW DELHI Rs 1 LAKH
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Aman celebrates luxury like no other hotel does. The limited suites (each have a private pool) have terraces which open onto small private gardens featuring a daybed and a 32 sq m private pool. The three bedroom Lodhi pool suites offer double-height terrace, private pools, guest bedroom, master bedroom and a third guest bedroom too.

Timeless treasures
JAY STRONGWATER Rs 4.75 LAKH
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This treasure box is handcrafted out of pewter and studded with crystals and precious stones. The limited edition of 200 pieces makes use of oxidised brass, hand polishing, hand-applied enamel and is set with 1,850 Swarovski crystals and cut stones including emerald and pear cuts in amethyst, topaz, and sapphire.

Tea in silver
FRAZER AND HAWS TEA SETS Rs 1.69 lakh
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Masters of sterling silver, Frazer & Haws have introduced, for season 2009-10, tea sets, bowls, platters and traditional Ganesha pieces and more. This year’s highlight has been an emphasis on oblong shapes and the “rooster tea set” is just that. With a gold-gilded rooster perched on top, the uniquely styled handles add a quirky touch to the set.

Splurging on notes
ELECTRIC GUITAR BY GIBSON Rs 3.96 lakh

Jeff Beck, according to Rolling Stone magazine, is one of the greatest guitarists of all time. This is a “recreation” modelled exactly on Beck’s own Les Paul. The first 50 guitars come aged, signed, numbered and actually played by Beck. Only 150 will be made in all, and each comes with a case and certificate of authenticity.

RS 10,000 TO RS 1 LAKH

Book it now
KAMASUTRA: THE INDIAN TREATISE ON LOVE AND LIVING Rs 12,500

This collectors edition from Roli Books boasts of detailed illustrations, rare miniatures, gouache and tantric paintings. The gold edged book comes in a handmade box made of pure silk. With lavish packaging, it’s a keepsake for the bedside.

Go for Ganesha
LLADRO’S GANESHA Rs 98,000

A series of “musical” Ganeshas have been introduced by Lladro, Spain’s contribution to premier collectibles in porcelain. Lladro’s previous outings with its limited edition series have proved great hits, and have proved to be viable investments. This flute playing Ganesha could well join their ranks.

Kilim meets Paris
VARYA’S PARIS TRUNK Rs 83,800

The trunk collection at home store Varya captures the charm and enduring beauty of a period of romance and grace. This Paris trunk in kilim is an example of amazing craftsmanship. Each piece has 400 finishing studs that are hand applied. The traditional sprung locks are of the finest quality. An average trunk typically requires 72 hours of labour to manufacture. And if kilim isn’t your thing, they also do them in leather.

Ring master
ALPANA GUJRAL’S COLLECTION Rs 50,000 onwards

Jeweller Alpana Gujral’s Dhoop Chaun collection is signified with emeralds, rubies and precious stones. Heirloom polkis shimmer in tones of champagne and cocoa. The collection showcases handcrafted earrings, necklaces, cuffs and cocktail rings. This year’s trend? Luminous pearls with yellow gold.

Glass design’s big break
VASES BY AME DE VERRE Rs 52,000

These vases in green crystal with intricate leaf pattern and a gold-plated base, are from Ame De Verre, an exquisite boutique of art decoratives at New Delhi’s DLF Emporio , which also houses luxury items in glass art and crystalware designed by Meenakshi Salve. The boutique has introduced collections from China, Germany and Hungary.

RS 1,000 TO RS 10,000

Smells so right
BRANDED PERFUMES Rs 2,200 onwards

Renowned brands like Ralph Lauren, Estee Lauder, Lancome, Armani, Oriflame, The Body Shop, have launched their new range of fragrances for the festive season. Select from fruity, spicy, subtle and minty cool flavours for that immensely fragrant and breezy feeling. Many brands have interesting offers too. On a Raplh Laurel fragrance, you get a duffel bag free.

Our Marilyn keeps ticking
CLOCK BY FCML Rs 4,500

A Marilyn Monroe clock — this one’s from the house of FCML, which also has other interesting gift options in bar accessories for those whose tastes remain young.

Seasonal dressing
ABRAHAM&THAKORE COLLECTION Rs 6,000 onwards

The Abraham &Thakore Autumn Winter ’09 collection has dresses in wild silk as the festive high point for this year. Delicately embroidered coats in charcoal merino wools or drapes in coffee georgette are among the style statements for the year. Another highlight is the merging of colours. So, crimson, pink and scarlet slowly darken into tones of coffee, nutmeg and chocolate and greens dissolve into shades of ink.

Tool mission with a cause
VICTORINOX’S NEW TOOL Rs 3,100

Victorinox unique rescue tool is primarily designed for emergency workers and car users. It features a knife-cum-screwdriver combination tool which helps trapped passengers in cars to break the toughened glass.

Spa splendor
SAMUDRA RITUAL Rs 9,000

Gift someone you love Park Hyatt Goa’s special offer for the festive season. A three-hour long luxurious rejuvenating spa ritual with uplifting properties of natural sea-based ingredients, it starts with micronised marine algae body wrap, a “marma” massage and a detox facial. A mineral bath salt soak, saffron-infused milk bath soak and, finally, a cup of organic tea in a private plunge pool. Stay at the resort is extra!

RS 100 TO RS 1,000

Getting the right look
COSMETIC SET BY COLORBAR Rs 1,000

This season’s cosmetic colours are bold and beautiful but our pick is an amazing “5-minute makeup kit” by Colorbar. We also recommend Estee Lauder for their range where you can have anyone’s name especially engraved with a special machine that is kept in their select stores . How’s that for personalisation?

For chocoholics only
HANDCRAFTED CHOCOLATES Rs 650 onwards

Cocoa World, The Chocolate World, Bagels&Brownies and many other brands of chocolates are gearing up for the festive season. Brand Amedei, in fact, is introducing chocolates from Tuscany. One of the world’s top chocolate brands, there are a lot of flavours to choose from. Made from the finest cocoa beans that have been imported from Africa, this festive season ditch the mithai for yummy chocolates instead.

On my writing table
DESK ACCESSORIES BY INDIAN BRANDS Rs 500 onwards

A great gifting option, especially if you’re looking at a limited budget, is desk and storage accessories. Homegrown brands like Anand’z Creation, Maspar, Fab India, Soma, to name just a few, have some incredible lineups for the festive season. Choose from a riot of colours and watch your loved ones smile at your choice.

C’mon, be a sport
PRODUCTS BY PLAY CLAN Rs 260 onwards

We simply love what Play Clan has to offer this festive season. While the whole world is busy getting traditional, this cult store is adding a fun twist to festivities and doing it in style. Our pick: those cute illustrations of Indian gods and goddesses that will be printed on notebooks, wall art, clipboards and bags. Coming up: Tees, too. – Business Standard

]]> 4735 2009-10-03 03:59:35 2009-10-03 10:59:35 open open a-little-give-and-take publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6794#comments wfw:commentRSS http://zikkir.com/business/6794/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6794 syndication_item_hash d18ea9b4b45d09178b9d7f391bc38e15 _encloseme 1 Geetanjali Krishna: The spirit of the hills http://www.ethiopianreview.com/business/4734 Sat, 03 Oct 2009 11:00:28 +0000 http://zikkir.com/business/?p=6796 I was in Pelling, Sikkim last week, wondering why the North East is not a different time zone from the rest of India. At 5.30 in the evening, the sun had dipped low, and the silvery peak of Kanchnejunga was beginning to blend with the horizon. “Seeing how long evenings stretch here, I can quite understand why Sikkim is reputed to have the third-highest per capita alcoholism rate among Indian states, behind only Punjab and Haryana!” said my husband. For although it was barely tea time, we were on our way to drink Chaang, Sikkim’s brew of choice with Dinesh Pradhan, principal of a local village school. “Chaang is part of the Sikkimese way of life,” said Pradhan, “we don’t look at our watches before sitting down with friends and kinsmen for a convivial drink!”

So we sat in his warm kitchen where large wood tumblers covered with tight lids and bamboo straws stuck through their middle were brought to us. Locally known as tombas, these contained what looked like a small mountain of moist chestnut-coloured grains on a sieve. “Pour hot water into your tombas,” instructed Pradhan. We obeyed, wondering how on earth this could yield a drink strong enough to keep the locals in high spirits. “The potency of Chaang depends upon how long it has been fermented for,” explained Pradhan, “the one you’re drinking, is quite mild…” It took about five minutes for the fermented millets to infuse into the water: “In fact the longer you keep it, the tastier and more potent the Chaang gets,” said he. Waiting for our beer to brew, we admired the simple lines of the tomba, well oiled so that the wood did not warp with the pouring of hot water in it.

Our first sip was a revelation — the drink was pleasant to taste and left a comforting sort of warmth as it went down our gullets. Before we knew it, we were down a tomba each. Then came the second revelation — all we needed to do was pour more hot water and in five minutes the second round of Chaang was ready again! “One handful of fermented millets may be used to make as many as seven tombas of Chaang,” said Pradhan.

As we got pleasantly woozy (yes, even though it tastes deceptively mild, it is rather potent) Pradhan told us more about the drink that is apparently the Yeti’s favourite tipple. In the villages nestled deep in the mountains, people talk in hushed whispers about Chaang being carried off by the mythical creature. Closer home, few aspects of the everyday life of Sikkimese villagers are considered complete without Chaang. Village friendships brew over a convivial tomba, and disputes settle over it as well. Rural swains woo their beloveds with it, and raise a toast with Chaang when they finally marry. Elders swear by its efficacy as a remedy for common cold, fever, allergic rhinitis, insomnia and of course, as a perfect accompaniment to the long and cold evenings of the small hilly state. After consumption, the millets that remain in the tomba are used as fodder for pigs and cattle.

“The best thing about this drink is that it is completely homemade,” said Pradhan, “ladies of the house ferment the millets with yeast, then grind the mixture with special roots and spices.” Unlike country liquor, Chaang rarely causes any ill effects or hangovers. Chaang, thought I, lying in bed the morning after, rejuvenated after a deep sleep, was a study in contrasts — heady and strong, yet benevolent and warm … not quite unlike the spirit of Sikkimese culture itself! – Business Standard

]]> 4734 2009-10-03 04:00:28 2009-10-03 11:00:28 open open geetanjali-krishna-the-spirit-of-the-hills publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6796#comments wfw:commentRSS http://zikkir.com/business/6796/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6796 syndication_item_hash a83ddbc5df96aaaf524d24d66cf93eb4 _encloseme 1 Kishore Singh: Experiments with Bapu http://www.ethiopianreview.com/business/4733 Sat, 03 Oct 2009 11:01:15 +0000 http://zikkir.com/business/?p=6798 Last week, I had every reason to believe that Gandhi would have been proud of my daughter. Out of the blue, one day, she began to practice the kind of austerities that Bapu embodied in his lifestyle. “Be the change you want to see,” she echoed him, and though she didn’t go so far as to start spinning khadi, or even eschew violence if shouting at the presswali who had ironed the pleats on a dress all wrong was any indication, she did turn frugal in her diet. Shakes were rejected, she wanted no part of animal flesh on her dinner plate, a few leaves of salad, some nuts and clear soup would do her just fine instead.

So, this week, from Goa, when she called to say the seafood was awesome, and she was piling on weight, I couldn’t help but wonder at her renunciation of a few days ago. “Honey,” explained my wife, “she was on a diet so she could wear a bikini on the beach, and you don’t do that unless you have a washboard stomach,” she looked down ruefully at her own rotund form.

That explained a lot. Some days before they left for Goa, my daughter had invited her sorority group over for lunch, a meal noticeable more for what they didn’t eat than what they consumed, leaving us with leftovers that lasted several days. They pinched absent waists, pulled in stomachs that couldn’t be sucked in any more as they pirouetted before a mirror, and feigned nonchalance while peeping at their profiles from under bangs and fringes. “How many boys will there be on the trip?” I asked my wife, who had been responsible for their bookings and had the roster of names and flights at her fingertips. “There aren’t any boys,” she replied, “they’re just a bunch of girls on their own.” “Then why are they preening so much?” I couldn’t help wonder. “You’ll never understand,” said my wife, “girls are so much more competitive among themselves.”

Having starved, exercised, plucked and primped, off they went, out of cellular range since they tended to abandon their mobiles rather than carry them to the beach. When we managed to catch up with them as they dressed up to head for a casino, or party shack, it was clear that Bapu wouldn’t approve of these goings on. When they weren’t having squid or shrimp or mussel, they were out gambling, and if the squeals behind were any indication, the use of intemperate language was not infrequent. Gandhi’s three monkeys would have had their hands full blocking off sight, sound or speech that was intended to offend.

Since I tend to observe most anniversaries for what they represent — a trait I hoped my children would inherit — I was a little surprised when my daughter called last evening to ask if, along with her girl gang, she might have a beer. Perhaps it had skipped her mind — easy enough in Goa — that it was Gandhiji’s birth anniversary, a fact I reminded her of. “Would you like us to cut a cake for him?” she asked a little dubiously.

I reminded her that it was a dry day. “I am not one to judge,” I added, “but Bapu would not have approved of your bingeing, leave alone drinking.” My daughter hung up soon after, though I noticed that she had made no reassuring noises about observing prohibition, a fact I pointed out to her mother, who ignored it to remind me that we were scheduled to go out for a birthday dinner in the neighbourhood. “Seeing that he was foolish enough to be born on the same day as Gandhi,” I observed drily of my neighbour, “I hope he’ll at least have the sense to serve decent booze.” – Business Standard

]]> 4733 2009-10-03 04:01:15 2009-10-03 11:01:15 open open kishore-singh-experiments-with-bapu publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6798#comments wfw:commentRSS http://zikkir.com/business/6798/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6798 syndication_item_hash ab7b8bf668c6facdf57c5d63d7b7e94b _encloseme 1 Time for a game change http://www.ethiopianreview.com/business/4732 Sun, 04 Oct 2009 01:24:37 +0000 http://zikkir.com/business/?p=6800 In the past, state-owned Doordarshan used to co-opt broadcasts of cricket tournaments expensively acquired by private channels by claiming that such events were of “national importance”. That argument, commercially questionable as it was, will cease to hold if the recent TV ratings for the ICC Champions Trophy are anything to go by. This is not a new trend. Five years ago, an India-Pakistan one-day international (ODI) match used to get ratings of 12-plus. In comparison, the last dozen ODIs involving India received an average match rating of under 3.0, while the recent India-Pakistan ODI in the ICC Champions Trophy generated an average match rating of no more than 2.8. Compared to this, a Twenty20 format cricket match generates average match ratings of over 5.0. Still, the fact is that ratings for matches in the second edition of the Indian Premier League (IPL) Twenty20 tournament—the format that was supposed to have revived interest in the sport—were significantly lower than the first, and suggest that cricket is losing its audience faster than might have been expected.

Few should mourn this decline, especially if the space vacated by this sport is replaced by support (from fans, commercial sponsors and the government) to other sports. Cricket is way too time-consuming to suit the demands of a 21st century economy. The growing productivity demands of a globalising India, the biggest audience for the sport, have already ensured the decline of the five-day game. The 50-over one-day matches were seen for a while as a solution, but they too have lost their appeal as spectators find less and less time to spare for the glut of tournaments. Twenty20, a six-hour version, has emerged as a novelty and only slowed the decline. Most other sports—barring baseball, which the T20 format resembles, and golf—consume a third of that time. A game of soccer, the world’s largest sport in terms of viewership (a staggering cumulative total of 26 billion for the last World Cup), is about two hours long. Only epic tennis matches run into six hours, most conclude in two or three. Hockey, the sport in which India neglectfully ceded its supremacy, takes about 80 minutes. Even a Formula 1 race takes no more than an hour-and-a-half. Track and field, badminton, swimming and even chess are all activities that have more to say for themselves.

Nothing probably represents the wasteful nature of cricket than the soaring food prices even as India’s agriculture minister takes time out to fulfil his duties as chief of India’s cricket board. But the most compelling reason to celebrate the decline of cricket is economic. It is, by its nature, an elitist game. The cost of the basic equipment alone precludes poorer people from participating, unlike soccer where Brazilian handymen and British dockworkers can legitimately dream of becoming billionaires by their thirties if they have a talent for kicking a leather ball. Cricket’s elitism does little to foster the kind of healthy eco-system that soccer and basketball can create. Successful soccer clubs operating on free-market principles are the equivalents of mid-size companies with direct and indirect job-creating potential—from footballers and managers to coaching staff, club staff and outsourcing opportunities for merchandise that trickle down to Tirupur in India and Shenzhen in China. Sports commentators celebrate the emergence of small town boys like Mahendra Singh Dhoni on the cricket scene, but their number is tiny and hardly transformative. In soccer, the potential runs into thousands. For a country that is worried about its aam admi, it is worth wondering whether the semi-official importance accorded to cricket makes sense anymore. – Business Standard

]]> 4732 2009-10-03 18:24:37 2009-10-04 01:24:37 open open time-for-a-game-change publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6800#comments wfw:commentRSS http://zikkir.com/business/6800/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6800 syndication_item_hash 2b44e59224b9195feceae5c7c393666d _encloseme 1 Eyeing Uncle Oscar http://www.ethiopianreview.com/business/4731 Sun, 04 Oct 2009 02:14:52 +0000 http://zikkir.com/business/?p=6802 India’s oscar entry this year is a marathi film. The director, Paresh Mokashi talks about the film.

The Oscar nomination season is upon us again. Marathi film Harishchandrachi Factory — based on the making of Dadasaheb Phalke’s first feature film — has been picked as India’s entry in the foreign film category for the Academy Awards 2010. It is possibly one of the few occasions when a regional language movie has been showered with as much attention and appreciation, but debutante filmmaker Paresh Mokashi tells us that he doesn’t think local language cinema is marginalised in India.

Why did you choose to film a part of Dadasaheb Phalke’s life and work?
It was not a conscious decision to make a film on him. I just needed a good story. While reading his biography, I was drawn to the period when he made his debut film. Therefore, the idea of focusing on the years between 1911 to 1913 — that covers the making of Raja Harishchandra, and its success — appealed to me. I don’t want to use the word “struggle” here, because it indicates a sorrowful, larger-than-life journey.

I have, instead, treated the events in Phalke’s life as an adventure, layered with light humour, because he was like that. He was eccentric, sharp and a passionate character. It’s a happy, inspiring tale. Technically, I decided to stay away from making it into a larger-than-life biopic because I don’t like that kind of storytelling. It restricts you. You end up trying to cover all the important events in the life of your subject, and are not able to delve deep into the psychology of one event, or the person.

How difficult was it to access information on him?
Most of us know only two things about Phalke: that he made India’s first feature film, and that there is an award instituted in his name. So in that sense, it was difficult to access information because there isn’t much available. But since my focus was very clear, I went through a couple of biographies and met some people who have known him through their fathers or uncles who lived in that era. The National Film Archives of India, in Pune, was helpful in accessing his films.

Harishchandrachi Factory is the second Marathi film to be selected for the Oscars, after Shwaas in 2004. Do you believe that the Oscar tag has helped sell regional cinema in India?
I don’t think regional cinema is marginalised in the country. For example, look at Telugu and Tamil cinema. They are stronger than mainstream cinema in many ways. It’s true that some of the other regional film industries remain economically weaker, but then again, I believe that regional cinema works in waves. There are ups and downs, just like in Bollywood.

You mortgaged your house to produce your film, since nobody in Bollywood would back it unless you made the film in Hindi. Doesn’t that kind of pressure make it doubly hard for regional filmmakers to survive?
Not really. Even if you want to make a film in Hindi, you may face the same hurdles. It’s not so much about the language. If I go to a producer with big names like the Khans or Roshans, I will get the money fairly easily. But if you knock at their door with a different kind of a story, they won’t entertain you. I’m all right with that attitude because it really tests my passion. It makes me question myself, “To what extent will I go to make this film?” So why not face these obstacles? It’s essential to struggle on your own for a while and prove to the world that you have the brains and brawn. Support will then automatically come your way. Look at my film now, and the kind of support it is receiving. Sometimes it’s difficult to handle the overwhelming compliments. It’s great to see the film cross language barriers, and emerge as part of national cinema.

Do you think the government is doing enough to promote regional cinema?
One cannot fully depend on the central and state governments because I’m sure they have their own restrictions and limitations. I have no complaints, though. You just need to do your own work well. The rest will fall into place.

What do you think worked in your film’s favour, as opposed to the other films that were in the race for the selection?
Oh my god, I have no idea. It was a pleasant surprise. There is a lot of subjectivity in such a competition.

I believe if you change the jury, you may get a completely different choice. What has worked in our favour is that the film has been consistently appreciated at all the film festivals it was screened at, and we have picked up quite a few national awards. So, yes, we did have hope there.

With the kind of media and mainstream film-industry attention your film has received, you should find it much easier to finance your next project. What are your future plans? Would you consider making a Hindi film now?
All I know is that it will be a film. I don’t know about the language. Whatever comes most naturally at that time. I have a couple of subjects which I have been thinking about but it’s too early to talk about them right now. – Business Standard

]]> 4731 2009-10-03 19:14:52 2009-10-04 02:14:52 open open eyeing-uncle-oscar publish 0 0 post syndication_item_hash 550fcea4bdb6a5d7a550d70a32e25204 syndication_permalink http://zikkir.com/business/6802 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6802/feed rss:comments http://zikkir.com/business/6802#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir _encloseme 1 Of men and monkeys http://www.ethiopianreview.com/business/4730 Sun, 04 Oct 2009 02:18:29 +0000 http://zikkir.com/business/?p=6804 1Stanley Kramer’s Inherit the Wind is the perfect ode to Darwin.

I did a double-take when I read the Telegraph headline “Charles Darwin film too controversial for religious America”. The film in question is the British-made Creation, with Paul Bettany as the legendary naturalist whose theory of evolution gave us the first scientifically rooted explanation for the history of life on our planet. Darwin’s 200th birth anniversary has rightly been celebrated far and wide this year. Yet this biographical film has had trouble finding a US distributor — an astonishing thing to contemplate, even if you’re aware of the extent of Christian fundamentalism in non-metropolitan America. (Polls indicate that fewer than 40 per cent of the US people believe in evolution.)

cA friend and I were talking recently about religious intolerance/sensitivity in India probably being greater today than it was 50 years ago, when the country’s most popular Prime Minister was known to be an agnostic. Today, it would be almost unthinkable for a PM to criticise organised religion or the idea of a personal god as sharply as Nehru did in his widely read book Discovery of India.Perhaps the US is seeing a similar “devolution”. Some days ago I re-watched a favourite old film, Stanley Kramer’s Inherit the Wind, about the trial of a schoolteacher arrested for teaching Darwin’s Theory of Evolution. The movie, based on the real-life Scopes Trial of 1925, stars one of Hollywood’s best-loved actors, Spencer Tracy, as a rationalist lawyer who defends the schoolteacher and fiercely challenges literalist interpretations of the Bible. It was made 50 years ago, but in light of recent developments it seems more topical and bolder than ever.

Kramer’s film opens with a dark, visually striking scene, as a group of men silently move across a deserted town square and the soundtrack plays the gospel song “Give Me That Old-Time Religion”, its lyrics a paean to unquestioning belief: That old-time religion / If it was good enough for Joshua, / It’s good enough for me… There’s something menacing about the group — they’re like a sheriff’s posse heading in single file to haul in a notorious criminal. It turns out that this isn’t far from the truth, except that the “criminal” in question is the mild-mannered teacher Bertram Cates, and his crime is explaining Darwin’s theory of the origin of man to his students and encouraging them to think for themselves.

For townsfolk living in America’s “Bible Belt”, such an act is intolerable. It’s also against the law that states that nothing that contradicts the Biblical version of Creation can be taught in a school. The incident draws countrywide attention; the veteran conservative politician Matthew Harrison Brady (Fredric March) is called in to prosecute Cates, while Henry Drummond (Tracy) leads the defence. For the duration of the trial, the town turns into a carnival, with barkers sitting about displaying chained monkeys and handing out placards that say “I’m not descended from no ape!” and “Don’t monkey with us”. (Ironically, this behaviour makes them seem more simian than human.)

Meanwhile, inside the courthouse, the two men go hammer and tongs at each other, and the result is an unbroken stream of powerful dialogue. “Is nothing holy to you?” asks the exasperated Brady at one point. “Yes. The individual human mind,” replies Drummond. “In a child’s power to master the multiplication table, there is more sanctity than in all your shouted ‘amens’ and ‘hosannas’.”

“An idea,” he continues, “is a greater monument than a cathedral.” This perfectly sums up what Darwin was all about. In the bicentenary year of his birth, if you want a quiet way of paying tribute to the man who taught us about the power of original thought, you can do worse than to watch Inherit the Wind. – Business Standard

]]> 4730 2009-10-03 19:18:29 2009-10-04 02:18:29 open open of-men-and-monkeys publish 0 0 post syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6804/feed rss:comments http://zikkir.com/business/6804#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash 45eecd7cb24552e5551f2b0568bb1ad7 syndication_permalink http://zikkir.com/business/6804 _encloseme 1 Simply glourious http://www.ethiopianreview.com/business/4729 Sun, 04 Oct 2009 02:21:28 +0000 http://zikkir.com/business/?p=6806 Inglourious Basterds is typical Tarantino: audacious and brilliant.

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It’s not very often that you watch a movie with great expectations and those expectations are met. And when the movie in question is directed by Quentin Tarantino, the anticipation is even greater. Inglourious Basterds is one such movie. And like most Tarantino movies, this too will polarise opinion. It’s amusing at times, shocking at others, while simply brilliant for the most part.

Tarantino takes us back to the 1940s, to Nazi-occupied France, where Hitler and his men are hell-bent on killing all the surviving Jews in the country. A few soldiers form a group, and call themselves the Basterds. Their aim? “To kill every f**ing Nazi”, as the leader of the pack, Aldo Raine (Brad Pitt) puts it. The movie is set during World War II but it isn’t a war movie.

Inglourious Basterds is divided into five “chapters”. In the first chapter, titled,“Once upon a time in Nazi-occupied France”, Colonel Hans Landa (played brilliantly by Christopher Waltz) visits a French home to smoke out a Jewish family. He kills them all except for a young girl, Shoshanna, who we later see as a French woman running a cinema hall in Paris. A series of unexpected events leads her to Landa, who massacred her family. What follows is how she plots to kill several Nazis, while the Basterds, on the other hand, are planning to do the same. All the sub-plots merge perfectly in a well executed climax.

Two things always stand out in a Tarantino movie — the powerful dialogues and the music. The dialogues in the movie are brilliant as well as audacious. Like when Waltz says, “I love rumours. Facts could be misleading. Rumours, true or false, could be revealing.” Tarantino makes conversations between two people so intriguing that you often forget the surroundings. He did this very well in Pulp Fiction, and he manages to do the same in Basterds as well.

The music, compared to his other movies like Kill Bill or Pulp Fiction, is not that eclectic, except for the wonderfully executed climax scene where you understand why Tarantino lays so much emphasis on music.

Pitt as Raine has some clever lines and does a good job. Diane Kruger, who plays a German actress but is really a British spy, has a short yet powerful role. But the man who steals the scene from under everyone’s nose is Waltz. His portrayal of a Nazi colonel is phenomenal. He is witty, polite, charming and menacing, all at the same time. No wonder that of all the actors he gets maximum screen time. He has already won the best actor award at Cannes earlier this year, and many more awards should follow.

People familiar with Tarantino’s work will know that, although some of the characters have limited screen time, they leave an inedible mark on your mind. Most of the characters in Basterds fit that mould. Watch out for the scene where Waltz compares himself to other German soldiers. And note “The Bear Jew”, who is known to smash people’s heads with a baseball bat. He is played by Eli Roth. The actor directed Hostel, one of the goriest movies of all time, and has just three scenes in this film. But one remembers his character long after the movie ends.

Like other Tarantino movies, this one too has its share of violence and gore, yet that doesn’t repel as one doesn’t expect a movie revolving around the Nazis not to have violence in it.

Yet, it’s not a flawless movie. It could easily have been shorter than its current length of 152 minutes. You also wonder about the dairy farmer from the first chapter. Or what Mike Myers’ exact role is in the movie. Still, you overlook these minor flaws.

Watch the last scene, and I am sure you will find yourself agreeing with what Pitt’s character has to say. – Business Standard

]]> 4729 2009-10-03 19:21:28 2009-10-04 02:21:28 open open simply-glourious publish 0 0 post syndication_item_hash 5f9d056c8f239dad9912bbc46450c525 syndication_permalink http://zikkir.com/business/6806 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6806/feed rss:comments http://zikkir.com/business/6806#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir _encloseme 1 Fruitless quest http://www.ethiopianreview.com/business/4728 Sun, 04 Oct 2009 02:50:09 +0000 http://zikkir.com/business/?p=6808 Reliance Fresh’s service needs a fresh look.

Organised retail was supposed to make life easier and better for the consumer. But just a few years since the creation of this segment, that dream is increasingly looking like a pipe dream. I decide to visit the Punjabi Bagh outlet of Reliance Fresh in New Delhi at about 10.30 on a Thursday morning. The first obstacle to entering the store are the nine steep steps that one needs to negotiate. The steps seem to be a test of fitness and anyone with even the slightest handicap would struggle to reach the doors to this temple of modern consumerism.

When I enter, three employees crowd the door chatting in a near-empty store. I start browsing, only to find that the trolleys are placed inconveniently behind the check-out counter. I have to ask one of the sales staff to retrieve one for me.

If you have ever been to a sabzi mandi or bought vegetables from a handcart, you will not be able to shop at Reliance Fresh. The vegetables look less than fresh. A stack of cauliflowers are in a dismal state. And, obviously, Reliance Fresh doesn’t believe in offering its customers the full range of fruits and vegetables that are available.

Nonetheless, I stack up some vegetables on my cart and quickly reach the check-out counter. The speed with which I finish has nothing to do with my reluctance to shop, and everything to do with the size of this outlet. It’s tiny.

The check-out counter is where I finally realise the futility of shopping at Reliance Fresh. I tell the clerk that I don’t have a carry bag. He says that neither do they, and that the staff normally helps load the shopping into your car. I point out to this smiling gent that even small kirana stores now offer some environmentally friendly shopping bags. He agrees, and says he is aware of this because he himself shops elsewhere.

I stand my ground, he stands his, until he offers a solution in the shape of a paper bag, which he says I will be billed Rs 7 for. But no store charges for providing shopping bags, I say. He again agrees with me, but says that this is the policy of the store.

What could be the revenue generated from charging Rs 7 from customers for a carry bag? Will organised retail now start charging entry ticket for entering an outlet? Creative revenue streams rather than flawless service, fair trade practices and a good choice of products seems to be the mantra. I leave without buying anything. The check-out clerk shrugs as I flounce out empty-handed.

Score: 3/10. Everything is a deal- breaker at Reliance Fresh

Note: Mystery Guest is a reality consumer survey in which reporters analyse a service anonymously. We welcome company responses as feedback and will be happy to carry rejoinders to any piece featured here. – Business Standard

]]> 4728 2009-10-03 19:50:09 2009-10-04 02:50:09 open open fruitless-quest publish 0 0 post syndication_item_hash 3edfff116207033f571887a1f0e9afac syndication_permalink http://zikkir.com/business/6808 syndication_feed http://www.zikkir.com/business/feed wfw:commentRSS http://zikkir.com/business/6808/feed rss:comments http://zikkir.com/business/6808#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir _encloseme 1 Rotten buys http://www.ethiopianreview.com/business/4727 Sun, 04 Oct 2009 02:50:56 +0000 http://zikkir.com/business/?p=6810 To our grocery shopper go Reliance’s spoils.

A minor kerfuffle has broken out at the Reliance hypermart in Mayur Vihar, where my wife and I are grocery shopping. My wife has plastic-bagged brinjals (Rs 9.99 a kilo) and okra (Rs 11.99), cabbage (Rs 16), cauliflower (Rs 24.99) and capsicum (Rs 50), remarking that the prices are lower and the quality better than that of comparable vegetables at vendor carts in the market. She adds Kullu apples (Rs 59.99) and corn (Rs 14) to her list, I help out with a tray of sliced pineapple rings (Rs 25 for 200 gm) and another of miscellaneous cut vegetables (Rs 20 for 250 gm).

But you also gets what you pays — I spot a tray of spoilt guavas for Rs 30 and pick some in a bag, to which I add, from the marked down section, sponge gourd or tori (reduced from Rs 28 to Rs 5 per kg), golden apple (Rs 10 from Rs 60), chikoo (Rs 6 a kg), and onions for Rs 13.99 a kilo.

Problem is, the gentleman at the counter who weighs our vegetables refuses to bill us for the samples, not because they aren’t for sale, but because he suspects the intent of a well-dressed, English-speaking couple wanting to purchase what are rotten vegetables and fruit. These are for poor people, he says. I’d like to buy them, I say. Mumbai hasn’t sent the day’s price for them, he counters. I tell him the prices are labelled. He removes the labels, and says fresh prices will take a half-hour.

I carry my bag of rotten vegetables to the check-out counter and ask for a bill. The man at the counter who takes them to the grocery section returns without the bag. I ask for the store manager; an assistant comes forward to help. I tell her I need my bag of vegetables and bill; she examines the spoils from the counter, asks me to wait. The manager comes over, asks me if there is a problem. No, I say, I just need my vegetables and my bill. These are for vendors, he points to the shelves of priced-down vegetables. If they’re for sale, I want them, I insist.

They confabulate some more, looking uneasy, but I’m finally billed for my rotten produce, the prices now knocked down to Rs 2.97 a kg for the onions, Rs 3.03 for the gourd, Rs 3.03 for the apples, Rs 3 for the guavas, and Rs 3.06 for the chikoo.

Score: 0/10. Despite their excellent prices, for the contempt in which they hold the poor, Reliance deserves our contempt too.

Note: Mystery Guest is a reality consumer survey in which reporters analyse a service anonymously. We welcome company responses as feedback and will be happy to carry rejoinders to any piece featured here. – Business Standard

]]> 4727 2009-10-03 19:50:56 2009-10-04 02:50:56 open open rotten-buys publish 0 0 post rss:comments http://zikkir.com/business/6810#comments syndication_source_uri http://zikkir.com/business syndication_source zikkir syndication_item_hash daf92310987326cfec87ff128ec8fdd7 syndication_permalink http://zikkir.com/business/6810 wfw:commentRSS http://zikkir.com/business/6810/feed syndication_feed http://www.zikkir.com/business/feed Animal instinct http://www.ethiopianreview.com/business/4726 Sun, 04 Oct 2009 02:53:38 +0000 http://zikkir.com/business/?p=6812 Lawyer and entrepreneur Nandan Kamath talks about his passion for wildlife.w

Having pets and showering them with love and affection is one thing. But it’s an entirely different thing to actually feel the same towards all animals. Nandan Kamath, director, Go Sports, a Bangalore-based sports foundation which works with upcoming athletes, has belonged to the latter category for as long as he can remember.

Kamath’s love for animals is evident. He talks passionately about them. “We need to have better policies for animal rights, and they deserve a much better life,” he says.

gThat’s why Kamath intends to do something for them at the policy level — not just for stray animals — but also for those in the wild. “Project Tiger is one of the few causes which everyone knows about, but there are many others working for animals and yet people are unaware of them,” he says.

Kamath grew up in a family which always had pets. His late mother worked as a cartoonist but also ran an organisation called Compassion Unlimited Plus Action (CUPA) in Bangalore, which worked to ensure that stray animals got a better deal. Early in his life, Kamath learnt firsthand that working with animals can be an immensely fulfilling experience. Though he admits that he never actively worked with CUPA, he says it gave him a sense of understanding. His maternal grandfather was a civil servant and always had pets. Even his sister, who works as a journalist with a TV channel, is an animal lover. “It runs in the family,” he says.

Being a wildlife enthusiast, Kamath often makes trips to the various national parks and sanctuaries in southern India, and always comes back fascinated. He has quite a large collection of wildlife photographs as well.

Going into the jungle, setting up camps and taking photographs in the wild is something he loves to do.

Kamath studied at Harvard Law School as well as the University of Oxford before he founded his own law firm in Bangalore. His other passion being sports, he soon started Go Sports with two other sports freaks. There’s little time for him these days to make regular trips to the jungle, but he tries his best to head off into the wild once or twice a year, at least. It used to be as a tourist earlier, he says, but now it’s become a part of his life.

He absolutely adores dogs and even has a Facebook profile for his dog Tuffy. It’s the most adorable thing you will come across — both the profile and Tuffy. Don’t believe us? Check out his profile here: www.facebook.com/profile.php?id=553462251.

Quiz him about Tuffy’s profile and Kamath laughs off the questions without revealing whether it’s him who updates it or someone else in his family. “It’s a secret,” he smiles. Tuffy doesn’t stay with him, as its difficult to keep a Golden Retriever in an apartment like the one Kamath occupies. The dog lives with his father, and Kamath is a regular visitor. He would like to be more than a visitor, though, and aims to change this in the future, when he plans to keep pets himself.

Kamath is quite unhappy that there are no proper animal rights and only a handful of people working towards giving them a better life. Quoting Mahatma Gandhi, he says, “You can gauge a nation’s character by the way it treats its animals.” But he says that with his hectic work schedule, he doesn’t get to devote much time towards working for them. With Go Sports a two-year-old venture which is still finding its feet, that is understandable. Kamath is adamant that his love for animals and his concern for their rights are a passion which he wants to cultivate down the line.

However, he does have a plan which he wants to put in action. Using his expertise as a lawyer, he wants to work at the policy level as well as intervene to make a difference to the lives of thousands of animals. And he doesn’t want to restrict himself only to the animals on the streets. And, unlike others, he doesn’t blame the government too much and says that it’s the responsibility of citizens to be aware of our rich wildlife. “It’s more a question of when rather than how it will happen,” he says.

There’s so much you can learn from animals, says Kamath. His idea of a perfect life involves lots of happy animals around him. “They deserve to be treated well,” he says. And he is determined to make sure that happens.

He does feel guilty for not doing enough, but wants to make up for lost time. Judging by his determination, Kamath will make sure he takes more time out in the future for something he is really passionate about. – Business Standard

]]> 4726 2009-10-03 19:53:38 2009-10-04 02:53:38 open open animal-instinct publish 0 0 post syndication_item_hash 6b69be8dba0ee3c5735c4159a7884d06 syndication_permalink http://zikkir.com/business/6812 syndication_feed http://www.zikkir.com/business/feed syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6812#comments wfw:commentRSS http://zikkir.com/business/6812/feed Raising the bar http://www.ethiopianreview.com/business/4755 Sun, 04 Oct 2009 03:10:12 +0000 http://zikkir.com/business/?p=6814 Nicholas Hawkins at the Blue Bar, Taj Palace, Delhi, makes cocktails that are unique and trendy.

Many believe that Delhi is no longer the butter chicken capital of the world. Its residents are now confirmed foodies, eager to give other cuisines a try. And now, it may soon be said that Delhi is no longer the scotch-consuming capital of the world — if Nicholas Hawkins has anything to say about it. Hawkins, who prefers to be called Nick, is at the helm of the just-opened Blue Bar at the Taj Palace Hotel in New Delhi.

Cocktails are Hawkins’ metier, and the menu at the Blue Bar casts its net far and wide to bring new and forgotten drinks to its discerning clients. Says Hawkins, “The trick is to talk to your clients all the time. Even though we have a large number of cocktails on the menu, we are willing to make a cocktail the way the customer wants it.”

If his the-customer-is-always-right practice is a step in the right direction, so is the effort to ensure that premium alcohol and the freshest, most exotic ingredients are used. Hawkins, sounding like a master chef, says that it is the ingredients which make a cocktail what it is. Says Hawkins, “In every drink you make, you can take the easy route — and then there is the harder and more fulfilling route of making it with the very best and taking time and effort.”

Hawkins, who makes and shares some of his recipes with us is, however, shy of spilling all his trade secrets. When we taste (all in the line of duty) his bourbon infused with cigar, he outlines the experience, “When you take the first sip, you feel that it’s regular bourbon, but 15 seconds later the taste of cigar kicks in, and then another 15 seconds later it intensifies.” With first-hand experience, I can say that it’s all true. But Hawkins will not tell us how he infused cigar in the bourbon.

Hawkins’s effort to create new cocktails is his “way of expressing his creativity.” True to his word, each of the four drinks (plus the bourbon) that he serves are all superlative and unique.

Cocktails, which fell into some disrepute in the 1970s and 1980s, are once again considered fashionable. And Hawkins is using his considerable knowledge to offer not just a very extensive menu but also one that will change four times a year, corresponding to the four seasons that the city experiences.

FAVOURITE RECIPES

MATAHARI
45 ml plum-infused Sake
1 tbsp plum Compote
30 ml Hendricks Gin
5 ml lime juice
½ a Japanese plum dropped
into a glass

Place the plum Compote and Sake into a Boston glass. Stir until the Compote dissolves. Add the rest of the ingredients and shake with cubed ice. Then double strain into a frozen martini glass. Finally, drop the half Japanese plum into the glass and serve.

FIG JAGGER
60 ml Morgan spiced rum
60 ml fig and date puree’
20 ml caramel
½ bar spoon jaggery
¼ de-seeded red chilli
¼ fig, for garnish

Place the fig and date puree, red chilli and caramel syrup into a Boston glass. Muddle until all the ingredients are mixed together. Add the remaining ingredients and shake with cubed ice. Double strain into a frozen martini glass and garnish with the quarter of a fig.

LEMON AND BASIL MARTINI
30 ml Grey Goose Citron
30 ml Limoncello, shaken
5 leaves of Thai sweet basil
15 ml fresh lime juice
5 ml sugar syrup
1 basil leaf, for garnish

Slap the basil leaves to release the oils and place in a Boston glass. Add the rest of the ingredients and shake with cubed ice. Double strain into a frozen martini glass and garnish with a slapped basil leaf. – Business Standard

]]> 4755 2009-10-03 20:10:12 2009-10-04 03:10:12 open open raising-the-bar publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6814#comments wfw:commentRSS http://zikkir.com/business/6814/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6814 syndication_item_hash 4ed63df72c5e1d04452faf7adc77cc93 Yoga on the rocks http://www.ethiopianreview.com/business/4754 Sun, 04 Oct 2009 03:11:19 +0000 http://zikkir.com/business/?p=6816 Baba Ramdev’s disciples have founded a health retreat on a Scottish island.

Yoga is reaching new heights globally, and how. This time around, controversial yoga expert and “healer” Baba Ramdev is set to part with his teachings on a Scottish island. The location of interest, off the west coast of Scotland, will soon be turned into a five-star yoga retreat. This uninhabited 700 acres of rocky land, known as Little Cumbrae to outsiders and Wee Cumbrae to locals, was acquired in July for £2 million by an Indian couple who run a successful Glasgow-based care home business.

At the outset, given the long-standing craze for yoga seen in the West, a business model such as this is likely to create curious interest among many. The buzz around the project was evident at its official opening last week, where, reportedly, hundreds of people, many from India, flocked to the little island to get a glimpse of the planned retreat, and the man at the centre of it all — Baba Ramdev.

Nobody cares now that his controversial remarks have been potentially harmful to society in general — he called homosexuals “sick people who need to be admitted to hospitals” and, a few years ago, advised school children to drink milk because it would make them “fair” and avoid colas because it would make them “dark”. Instead, Ramdev was featured as a picture of “peace”, seen meditating on a rock at the island.

This new yoga destination, incidentally, has been renamed Shanti Dwipam, meaning Peace Island in Sanskrit. Reports said that the owner couple, Sam and Sunita Poddar, claimed to have been healed of various health complications and obesity by Ramdev. They are keen to bring in yoga specialists and doctors who will treat patients with ayurvedic medicines, yoga and massage. Speaking to news agencies, Sunita Poddar emphasised “the rejuvenating and healing powers of Yog Pranayam and Ayurveda” that would make this an attractive destination. Another reason to come, she said, was to explore “the magnificent history of the island”.

Yoga retreats are popular across the world, with some of the most exotic yoga destinations in the Bahamas, the Caribbean, Mexico, Thailand, Turkey and many other countries. This little treeless island in Scotland, however, is riding high on its distinction — a visibility lent to it by the fame and notoriety of Ramdev. – Business Standard

]]> 4754 2009-10-03 20:11:19 2009-10-04 03:11:19 open open yoga-on-the-rocks publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6816#comments wfw:commentRSS http://zikkir.com/business/6816/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6816 syndication_item_hash cacbe53aa9009ce4cded945b4cc02670 Twelve elevens http://www.ethiopianreview.com/business/4753 Sun, 04 Oct 2009 03:13:12 +0000 http://zikkir.com/business/?p=6818 IPL’s poor cousin, the Champions League T20 gets underway on October 8. We give you the lowdown.

After being introduced to the world of Challengers, Chargers and Daredevils, now meet the Cobras, Bushrangers, Eagles and Sharks of the T20 cricketing world. ICC’s Champions League T20, which gets underway on October 8, sees 12 teams contesting to become the ultimate champion of the T20 format.

We know that the format has a huge fan following and that the city-centric franchisees have built a commendable fan base. However, it remains to be seen whether fans will show the same kind of affinity with teams from Sussex, Victoria and Cape Town. We tell you a little bit more about the teams which are set to dominate cricketing headlines for the next fortnight or so.

Deccan Chargers
Led by the brilliant Adam Gilchrist, the Deccan Chargers surprised everyone by winning the second edition of IPL. They will face stiff opposition in the Champions League and will look to people like Andrew Symonds, Rohit Sharma and Fidel Edwards to lead the charge for them. They have a well-balanced team and will be the front runners for the trophy.

Delhi Daredevils
Any team which boasts of Virender Sehwag and Gautam Gambhir at the top of its batting order can destroy the opposition, specially in the T20 format. The Delhi team will be hoping Sehwag has shrugged off his injury worries. Daniel Vettori’s finger spin will come in handy in Indian conditions, as well. The bowling, however looks a bit weak — but the batting department makes up for it.

Royal Challengers
The best thing that could have happened to this team was Anil Kumble becoming skipper. Leading by example, Kumble instilled grit and determination, and the team now looks totally different. With Rahul Dravid, Jacques Kallis and Robin Uthappa within the ranks, the Challengers are a formidable unit who will mount a serious challenge for the trophy.

Victorian Bushrangers
This Melbourne-based team is clearly a favourite for the title. Having won the domestic T20 competition in Australia thrice, it comes to this tournament with a fearsome reputation. Indian fans will be familiar with names like Peter Siddle, David Hussey, Cameron White and Brad Hodge. Watch out for 35-year-old fast bowler Shane Harwood, and young spinner Bryce Mcgain.

New South Wales
This is Australia’s biggest name on their domestic circuit, and has produced great cricketers over the years, including the likes of Sir Don Bradman and Steve Waugh. However, in the CLT20 the team will be led by Simon Katich, with Brett Lee, Stuart Clark and David Warner in the ranks. Lee and Warner are NSW’s star operators in the bowling and batting departments, respectively.

Cape Cobras
Meet the T20 champions of South Africa. They have South African internationals like Graeme Smith, Herschelle Gibbs, J P Duminy and Charl Langeveldt in their ranks, and some former international cricketers like Justin Ontong. Not a team to be underestimated, they will be tough to beat.

Diamond Eagles
A team which doesn’t boast of any big names, unless you consider former South African batsman Boeta Dippenaar a big name! But the Eagles come with pedigree: they are the only South African domestic team to have won all three domestic trophies in the course of the past four seasons, and have had five trophy successes altogether.

Otago Volts
This team is from New Zealand and is captained by Brendon McCullum, who led the Kolkata Knight Riders disastrously in the IPL. Apart from McCullum, the Volts have English all-rounder Dimitri Mascarenhas in the lineup and will be looking to these two men to provide some spark. Not much is expected from them.

Trinidad and Tobago
The boys from the Caribbean will be looking to have a Calypso of their own in the Champions League. With a mix of past, present as well as local cricketers, they have a well-balanced team. The Bravo Brothers — Dwayne and Darren — are its main players, with the former being their biggest name. They could turn out to be the surprise package of the tournament.

Wayamba Elevens
They have almost half the Sri Lanka international team in their ranks and will pose a strong threat. Mahela Jayawardene and Jehan Mubarak will be the two main batsmen for them, while Ajantha Mendis will be more than a handful on the turning tracks of India. They also have a few youngsters who will be looking to showcase their talent on a bigger stage.

Somerset
Led by Aussie veteran Justin Langer, this too is a team of unknown quantities, barring former England opener Marcus Trescothick. The English are not known to excel in the shortest format of the game, and Somerset will have to play their hearts out to upset the applecart in the Champions League.

Sussex Sharks
The T20 champions from England have a player from India, Pakistan and the West Indies , as well as an Irishman. Spinner Piyush Chawla knows Indian conditions well and will be a tricky customer to face. The Sharks may not have big names, but could be the dark horse. – Business Standard

]]> 4753 2009-10-03 20:13:12 2009-10-04 03:13:12 open open twelve-elevens publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6818#comments wfw:commentRSS http://zikkir.com/business/6818/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6818 syndication_item_hash d741469ff4c7363b45ff4d3ace0af289 All that glitters is bronze http://www.ethiopianreview.com/business/4752 Sun, 04 Oct 2009 03:13:56 +0000 http://zikkir.com/business/?p=6820 It’s not all about talent always. Sometimes being cool helps.

About 14 months after India’s best Olympic showing in Beijing, Vijender Singh’s bronze medal is proving to have more glitter than Abhinav Bindra’s gold. Singh has signed a deal with Percept that will make him rich, very rich. He is doing a reality show, and appears ready to act in a film. In contrast, Bindra is not making much headway in the endorsement sweepstakes despite some promising starts soon after the medal.

Singh’s case has been bolstered by the bronze he won last month at the World Boxing Championship in Milan — the first Indian to do so — and the world number one ranking in his weight category. But, more than that, he is evidence that all sports, though they exist to extend man’s physical limitations, leave room for other considerations.

It always helps to be a good sportsperson or athlete, but no amount of training can make up for natural good looks. If you don’t have that, the way to go is to cultivate an image that is cool and fires the imagination of the youth and advertisers.

That is why Tiger Woods is such a success. He has married sporting excellence with a clean-cut, good-boy image. His rise coincided with the ascendancy of political correctness. He was lapped up by all those who wanted to be seen as promoting men of colour and who, in Woods, found a man of colour who largely met the White criteria of good looks.

This picture is even more stark back home. Zaheer and Yuvraj were quick off the endorsement block. Yuvraj, especially, has retained currency despite his failure to establish himself in the Test team. In contrast, Anil Kumble, who has won more matches for India than any other player, did not win many endorsement deals.

Someone, maybe someone from a sports management firm, needs to tell Bindra that cultivating a shy image, and calling yourself a loser who has done nothing in life other than to shoot at targets, is worse than shooting yourself in the foot. As it is, his is not a sport that will enthrall spectators. It isn’t much fun watching a man shoot at inanimate targets, where the most dramatic movement is the finger pulling the trigger. Boxing has spawned five Rocky movies, a Raging Bull, a Cinderella Man and sundry others. How many has shooting done?

Singh has done a glamorous photo shoot for Maxim magazine. He walks ramps and makes frequent appearances on television. He shows poise before the camera and comes up with one-liners which, though not witty, would still be ahead of Bindra’s smile.

Singh also has looks that may appeal to many women. And to some men too. But Bindra can take heart. Deft management can surmount natural limitations. The biggest deal by an Indian sportsperson remains Sachin Tendulkar’s Rs 100 crore handshake with WorldTel. – Business Standard

]]> 4752 2009-10-03 20:13:56 2009-10-04 03:13:56 open open all-that-glitters-is-bronze publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6820#comments wfw:commentRSS http://zikkir.com/business/6820/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6820 syndication_item_hash af6e8d1d7b18b32d104290b984a1eb8f Walgreen Serves Up Some Good Medicine http://www.ethiopianreview.com/business/4751 Sun, 04 Oct 2009 03:18:53 +0000 http://zikkir.com/business/?p=6822 Although retail isn’t in the best shape it’s ever been, it does seem like it’s on the road to recovery. The space has an enormous amount of potential in the long run, thanks to our inclination to spend. In addition, the demand for pharmaceuticals is likely to increase over time – both for demographic reasons and because many illnesses can now be treated with pharmaceutical and over-the-counter products. In short, these are some of the primary reasons why I am so upbeat on Walgreen (NYSE:WAG). But does it make sense to get in on these shares now? Let’s take a look.

Time to Fill the Prescription for WAG?
The first thing that stands out to me is the drugstore chain’s fourth-quarter results, which were announced last week. In spite of a difficult environment, it managed to earn 44 cents a share. This represented drop from the 45 cents per share it put up last year, but it was a nickel better than the 39 cents that analysts had been expecting.

This is big because better-than-expected results can draw a lot of attention. In fact, I think that institutions looking to dress up their portfolios may pay particular attention to this. Plus, Walgreen’s stock has been performing as well. It’s trading right near its 52-week highs.

From a price-to-expected earnings perspective, Walgreen is, for lack of a better word, reasonable. WAG currently trades at about 16.7 times the 2010 estimate, and the company is expected to grow in excess of 14% per annum in the next five years. The stock isn’t exactly cheap, but 14% growth is pretty big for a company of this size. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)

Incidentally, I think the company’s size is a plus that should be addressed, too. With more than 7,000 stores around the country, I think the company has an opportunity to build some solid brand loyalty. Competitor CVS is similar in size in terms of store count, while Rite Aid (NYSE:RAD) sports just over 4,800 stores.

The Big Threats
If the economy were to reverse course or to stall, that would clearly have a negative impact on the company. I also think that well-known discount firm Wal-Mart (NYSE:WMT) should be viewed as a big threat in the future.

Bottom Line
I like Walgreen and think the stock makes sense right now. A new high, if it happens, could attract attention, as could the company’s recent earnings beat. I see the stock trading to the mid-$40s within the next six to 12 months. (Read Analyzing Retail Stocks to learn about the most important metrics to look at when analyzing retail stocks) – Investopedia

]]> 4751 2009-10-03 20:18:53 2009-10-04 03:18:53 open open walgreen-serves-up-some-good-medicine publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6822#comments wfw:commentRSS http://zikkir.com/business/6822/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6822 syndication_item_hash b51f34723f100943740c6ffdc5079e3e Quality Stocks Under $10 http://www.ethiopianreview.com/business/4750 Sun, 04 Oct 2009 03:23:09 +0000 http://zikkir.com/business/?p=6824 The only reason to fixate on a stock price is in relation to the value you are getting. For example a quality company like Nucor Steel (NYSE:NUE), with its efficient flexible steel operations, is likely a better bet going forward than MBIA (NYSE:MBI) even though Nucor trades for around $50 versus $8 for MBIA. In the short run, MBIA’s stock could experience a stronger surge, but dollar for dollar I prefer the earnings power of Nucor any day.

An Interesting Note on Price
But there is a reason as to why finding quality gems under $10 may be a rewarding bet. Mutual funds and pension funds, whose buying and selling activity account for the bulk of the market’s moves, are often prohibited from touching stocks under $10 because they are deemed “too risky.”

As a result, a good business that sees its stock go below $10 may simply be sold off for no other reason than the rules governing the mutual funds. As a result, some excellent ideas can be found looking at the under $10 list. Also, if the share price rebounds to attract the attention of the mutual funds again, that’s another reason to propel the stock higher.

Good Old Businesses
Focus on businesses with quality, boring, hard assets that can earn money for the business over the long run. Travel Centers of America (NYSE:TA) is a company that could be worth a look. The company owns and operates the major highway gas stations that you see when traveling. And by major I mean the gas stations that can serve dozens of major trucks at a time. Often these stations will include a couple of restaurants, a large convenience store, and sometimes a motel for tired truck drivers.

These stations aren’t going anywhere and when the economy picks up, so will the business. The shares are now at near $6, off a low of $1 but nowhere near the high of $22 a couple of years ago. (For related reading, check out Five Mid Caps The Pros Own)

Mueller Water (NYSE: MWA) is a manufacturer of water infrastructure products for the residential and municipal markets. The residential business is terrible today, but it’s not permanently doomed. Shares are $5.50 and you are getting a company with many products that command the number #1 or #2 market share.

Crosstex Energy (NYSE:XTXI) is a business that gathers and transmits natural gas from producers to sellers. In other words, the company owns the pipelines needed to move natural gas around. Pipelines are like monopolies; once you own them, it makes no sense for a competitor to build a pipeline to compete in your area. At $4.40 Crosstex is both asset rich and debt laden. Fortunately, the transmission of natural gas is a relatively stable cash flow business which should enable Crosstex to meet its debt payments even during these tough times.

Boring is Good
The above businesses operate in boring businesses. To me, boring translates into lack of competitive threats, a very good problem to have in a tough economy. As the market has rallied so have these shares. But in the long run, as the business environment improves, so should these companies’ fortunes. (For further reading, check out Invest In Companies That Make Things.) – Investopedia Stock

]]> 4750 2009-10-03 20:23:09 2009-10-04 03:23:09 open open quality-stocks-under-10 publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6824#comments wfw:commentRSS http://zikkir.com/business/6824/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6824 syndication_item_hash 4a9f16a658f47dfb23dd399b554733b6 Is Intel Worth A Look Ahead Of Earnings? http://www.ethiopianreview.com/business/4749 Sun, 04 Oct 2009 03:24:38 +0000 http://zikkir.com/business/?p=6826 In three, five or ten years do you think that people throughout America and the world will be more or less dependent on computers and other communication gadgets than they are right now? If you think the answer is more dependent, the semiconductor space deserves a major top to bottom look. My favorite player right now is, by far, California-based giant Intel (Nasdaq:INTC).

Why Intel?
In spite of an incredibly long and ongoing battle with Advanced Micro (NYSE:AMD) coupled with an incredibly slow economy Intel has, and is expected to show, strong earnings. Looking back the data shows that it’s been profitable in three of the last four quarters on an EPS basis and that it has beaten expectations in two of the last four.

Intel is actually expected to release its third-quarter earnings in mid October. The estimate is 27 cents. My feel is that it will at least meet that number, but probably beat it. Interestingly, the estimate for the period has gone up a nickel over the last 30 days, a fairly good sign. One thing that would make the situation even more convincing would be some open insider buying at the current price.

About Its Number One Rival
Advanced Micro is not a company that I like from an investment perspective. The AMD optimists will argue that the company will continue to be a pain in Intel’s side thanks to its technology, popularity among the masses and the good people it has working for it. Some might argue that if the company can return to profitability that interest in the stock may rise.

That’s a reasonable argument but at the end of the day I’d rather play the top banana in this space, and the one that is the most profitable and this leads me to Intel. Moreover, while AMD may indeed return to profitability on an EPS basis at some point, if and when that might happen remains to be seen. I prefer to get the feeling that full year profits were on the nearer-term landscape.

Another Chip Worth Dipping?
Texas Instruments (NYSE:TXN) makes chips that are used in things like cell phones. The firm recently drew headlines for raising its third-quarter earnings guidance. The company is also coming off a better-than-expected second quarter, and in time I think it could grow a great deal as demand for that end product increases.

I also like Dell (Nasdaq:DELL), which obviously uses semiconductors in its computers. Dell made headlines earlier this week with its intention to buy Perot Systems (NYSE:PER). As of this writing, Dell trades at 15 times this year’s estimate.

The Bottom Line
Semiconductors are the wave of the future, and I think that demand will perk up materially in the years ahead. With that in mind, I feel that Intel is the best way to play this space. Its size, vast pockets, technology, recent ability to beat earnings and profitability are too good to simply ignore. (To learn more, check out The Industry Handbook: The Semiconductor Industry.) – Investopedia Stock

]]> 4749 2009-10-03 20:24:38 2009-10-04 03:24:38 open open is-intel-worth-a-look-ahead-of-earnings publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6826#comments wfw:commentRSS http://zikkir.com/business/6826/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6826 syndication_item_hash 3dfc943dd5cadd967afaaddb9d2c743a Top 5 Companies In Danger Of Bankruptcy http://www.ethiopianreview.com/business/4748 Sun, 04 Oct 2009 03:26:17 +0000 http://zikkir.com/business/?p=6828 Investors who feel that the economy has moved past the danger point of the financial crisis and that good times are right around the corner might want to consider the lagged effects of the downturn, which still might claim some victims.

Audit Integrity, an independent research firm focused on corporate accounting and governance, just released its annual list of the companies most likely to enter bankruptcy over the next year. Audit Integrity has a quantitative proprietary model that incorporates a company’s liquidity, debt levels, profitability, market price and also subjective inputs like governance and fraud risk measures.

1. Rite Aid Corp (NYSE:RAD) has the highest risk of bankruptcy according to the study, at 10.5%. The company has nearly 5000 drug store locations nationwide and received a $1 billion credit line in July 2009 from a collection of lenders, including $290 million from the financing arm of General Electric (NYSE:GE).

Rite Aid reports earnings on September 24, and that report should illuminate the financial situation at the company.

2. Sirius XM Radio (Nasdaq:SIRI) is second on the list with a 9% chance. The company received an investment back in March 2009 from Liberty Media Corp (Nasdaq:LCAPA) of $530 million to help it with its liquidity problems. Sirius XM radio has other problems as well. The company just received a delisting notice from the Nasdaq exchange because the price of the stock fell below $1 for more than 30 days.

3. Some of the names on the list might come as a surprise. Like American Airlines (NYSE:AMR), which is third on the list, with an 8.7% chance of bankruptcy. American Airlines just announced that it raised $2.9 billion in capital to help it through the recession, and this funding may significantly lower its bankruptcy chances.

4. Federal Mogul Corp (Nasadq:FDML) is number four on the list with a 8.6% chance. This auto parts supplier has been caught up in the troubles in the automotive industry the last year. The company did manage to eke out a slight profit in its most recent quarter.

5. Textron (NYSE:TXT) is another interesting name on the list wih a 7% chance. The company just came to market and sold $600 million in 5 and 10-year debt. Textron used some of the funds to repurchase several outstanding issues of debt with earlier maturities. The tender apparently pleased the market as credit default swaps on Textron tightened and closed at a 263 basis points spread.

The Bottom Line
The economy will arguably start growing over the next year causing a huge psychological lift for investors, and higher cash flows for many companies. However, many sustained so much damage that they may not make it out with the rest of the market, thus disproving the old stock market cliché that a rising tide lifts all boats. (To learn more, see What You Need To Know About Bankruptcy.) –
Investopedia Stock

]]> 4748 2009-10-03 20:26:17 2009-10-04 03:26:17 open open top-5-companies-in-danger-of-bankruptcy publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6828#comments wfw:commentRSS http://zikkir.com/business/6828/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6828 syndication_item_hash 719e042c19c366ae8ad4b7c2077bef0a China Still Has Investing Opportunities http://www.ethiopianreview.com/business/4747 Sun, 04 Oct 2009 03:28:46 +0000 http://zikkir.com/business/?p=6830 There’s been a lot of talk about the Chinese economy quickly overheating. The Chinese stock market, as measured by the Shanghai Composite Index, is the best performing stock market in the world among the developing nations. Furthermore, the Chinese government’s aggressive stimulus policy has flooded the economy with money, a lot of which is finding its way into Chinese stocks.

Separate the Business from the Stock Market
Generally I agree that one must be careful in China. Chinese companies that I wrote about earlier, like fertilizer company China Green Agriculture (NYSE: CGA), pork feed and meat supplier AgFeed Industries (Nasdaq:FEED) and poultry producer Yuhe International (Nasdaq:YUII), are all up significantly since then and are not as attractive as they once were. Yet notice the theme in my picks: food and fertilizer, two essentials in human societies. Over the long run, people, especially China’s 1.3 billion, will want to eat more and more meat. (For related reading, check out Investing In China.)

Taking Care of the Animals
Similar to the three names above, you should consider taking a close look at Skystar Bio-Pharmaceutical (Nasdaq:SKBI), a provider of veterinary medicines, vaccines and feed additives for poultry, livestock and pets. In other words, Skystar ensures that chickens, cows and pigs stay remain healthy until consumption. The company’s products also heal sick pets, a growing area in China.

Skystar has over 170 current products and over 40 in the developmental stage. It’s also the only U.S.-listed veterinary supply company in China. At $15.80 a share, the company’s market cap is $55 million. Reported net income for the first six months of the year was 50 cents per share. Normalized to $1 for the year, Skystar does not look cheap at 16 times earnings.

Skystar Issues
However, Skystar is currently having to book “losses” for the change in the fair value of warrants it issued earlier. Without getting into the details of accounting, while these charges are currently being charged against earnings, they will actually be recovered because they are not true liabilities.

So Skystar’s real earnings for the first half of 2009 were $1.28. The second half is expected to be stronger, but at an EPS of $2.50, Skystar’s P/E is a notch above six. From 2003-2008, Skystar’s revenues grew at over 84% a year, while net income rose by over 130% a year. The veterinary medicine industry in China was a $7 billion industry in 2005, and has been growing at over 15% a year.

Bottom Line
When investing in Chinese companies, it always pays to invest with a healthy dose of skepticism. However, Skystar is a company that makes products that are going to be needed for a long time to come. Once the clouds regarding the warrants clear up, shares could do quite well in response to the bargain valuation. (For more, see Top 6 Factors That Drive Investment In China.) – Investopedia Stock

]]> 4747 2009-10-03 20:28:46 2009-10-04 03:28:46 open open china-still-has-investing-opportunities publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6830#comments wfw:commentRSS http://zikkir.com/business/6830/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6830 syndication_item_hash 7b58a8b2bc6c0d727b1851dca12ee898 The Wide World Of Real Estate http://www.ethiopianreview.com/business/4746 Sun, 04 Oct 2009 03:30:20 +0000 http://zikkir.com/business/?p=6832 We are currently in the midst of one of the most prolonged economic slowdowns in decades. While signs of life have been returning to the equity and credit markets, the short-term outlook still remains one of uncertainty, compounded in the sector of real estate. This is a shame. Property as an investment offers diversification benefits coinciding with high dividend yields. This is added to its benefit of low correlation to equities and bonds. However, as the main destroyer and cause of the current crisis, the asset class has fared pretty poorly in recent months. The broad U.S. real estate portfolio measured by the iShares Dow Jones U.S. Real Estate (NYSE:IYR) is still well off its $90-plus highs. With experts and various analysts still spelling doom and gloom for the sector, especially in commercial real estate, investors in the sector are making speculative bets at best. However, for investors willing to pack their passports, the story is very different one.

Think Globally
While the market for real estate in the United States is still experiencing some rocky footing, globally the asset class is once again booming. Since the mid-nineties, nearly 30 varied countries, from Singapore to France, have adopted the Real Estate Investment Trust (REIT) tax structure. Prior to 1990 only four nations had REITs. The global real estate sector’s market capitalization has expanded several fold, from $165-742 billion from January, 1990 to today. Despite this explosive growth, the global securitized real estate market is relatively small, compared to the broad international equity and fixed income markets. This gives the sector more for growth over the long term. In addition, by focusing our real estate dollars outside of the United States borders, we gain access inefficiencies in pricing. Globalization, while giving areas access to capital investment, has not changed supply and demand dynamics or other local operating characteristics intrinsic to local real estate markets.

Adding International Real Estate via ETFs
With the recent exchange traded fund boom, adding international real estate to a portfolio has never been easier. Several different funds exist, following different global property indexes.

The iShares S&P Developed ex-U.S. Property Fund (AMEX:WPS) measures the investable market for real estate companies domiciled in the developed world, outside of the United States. Currently, the fund holds 228 different real estate stocks, across 20 different country allocations. With Japan and Hong Kong, the two largest international REIT markets at nearly 50% weighting. The fund yields 3.14% and charges 0.48% in expenses.

Also launched from the successful line of iShares ETFs comes the FTSE EPRA/NAREIT Dev RE ex-U.S. (Nasdaq:IFGL). This fund focuses its attention on Canadian, European and Asian real estate markets. This includes a small 6% weighting to China, as well as other emerging nations. The index fund is up over 36% year to date.

The first ETF to enter the space is also one of the best. The SPDR Dow Jones International Real Estate (NYSE:RWX) was first launched 2006 and holds 132 different REITs and property managers from around the world, excluding the United States. The fund is also the most heavily traded at a three-month average of 182,000 shares each day. The iShares funds only average 30,000 a day. The SPDR charges 0.59% in expenses and yields 4.14%. For investors wanting one trade for their real estate dollars, State Street (NYSE:STT) offers the SPDR Dow Jones Global Real Estate (NYSE:RWO), which adds U.S. REITs to the mix.

The Bottom Line
While the health of the United States real estate market is still in question, the global market for property is beginning to return to its former glory. As a low correlated asset that is often missing from investors’ portfolios, gaining exposure to the segment is easy through exchange traded funds. The aforementioned ETFs offer an easy way to access this market. (For related reading, check out ETFs Vs Index Funds: Quantifying The Differences.) – Investopedia Stock

]]> 4746 2009-10-03 20:30:20 2009-10-04 03:30:20 open open the-wide-world-of-real-estate publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6832#comments wfw:commentRSS http://zikkir.com/business/6832/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6832 syndication_item_hash d9fcbba35472be712cd70706a2ed0bdb Are Full Service Restaurants Worth Chewing On? http://www.ethiopianreview.com/business/4745 Sun, 04 Oct 2009 03:31:50 +0000 http://zikkir.com/business/?p=6834 Fast food chains will be in favor over the next year or two, but what about the full-service dining chains we love so much?

Casual Dining is Half-Baked
As the economy makes its way back, consumers will spend a greater portion of their income on themselves, but not on extravagant high priced services or goods. A brand new Lexus or a home at the beach may not be in the cards, but a night out on the town could be. Therefore, casual dining chains could actually turn in some good revenue and earnings results in the months to come. (Though these two jobs are perceived as being opposites, the compensation can be quite comparable. Read more in Compensation Myths: Burger Flipper Vs. Investment Banker.)

But are better times to come already factored into some share prices?

Darden (NYSE:DRI) (Olive Garden/LongHorn) is a company that has potential. There is a reasonable chance it could hit a new high, which could attract new investors. It is also interesting that the company has exceeded estimates in three straight quarters.

It also has a reasonable chance of exceeding estimates when it releases its first-quarter results later his month. At present, the estimate is 66 cents, and it could beat that by two or three cents. It trades at 13-times this year’s estimate, which is $2.81. With all of that said, it’s unlikely that the shares have room to run from current levels.

Brinker International (NYSE:EAT) is a company that has a bright future too, as its Chili’s concept is simply fabulous. It’s also pulled back from just over $18, where it was trading in the earlier part of August. To its credit, it beat expectations in its second quarter and it trades at an alluring 12-times this year’s estimate. Like Darden there is some upside potential here, as well.

DineEquity (NYSE:DIN): Applebees and IHOP are two appealing names, and these concepts give the company an excellent breakfast/lunch punch. It’s also been beating earnings estimates by a fairly large margin. However, it is slightly more expensive, trading at about 14-times this year’s estimate of $2.09.

Is Fast Food Still Viable?
It makes sense to get involved in the larger fast food plays. And among those, McDonalds (NYSE:MCD) continues to garner attention. It is expected to grow its EPS almost 9.8% from this year to the next, and continues to gain attention because of its $1 menu,. The company trades at an acceptable 14.5-times the 2009 estimate.

The Bottom Line
The casual dining space has upside in the next few years. And in spite of the run up in the major indexes, these stocks haven’t gotten ahead of themselves. Actually, Darden is one to keep your eyes on. It’s due out with its first-quarter numbers toward the end of the month. (For more, read Sinking Your Teeth Into Restaurant Stocks.) – Investopedia Stock

]]> 4745 2009-10-03 20:31:50 2009-10-04 03:31:50 open open are-full-service-restaurants-worth-chewing-on publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6834#comments wfw:commentRSS http://zikkir.com/business/6834/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6834 syndication_item_hash 023de90715233ace0740edcc1dbf8eb6 5 Homebuilder Stocks To Watch http://www.ethiopianreview.com/business/4744 Sun, 04 Oct 2009 03:36:14 +0000 http://zikkir.com/business/?p=6836 The homebuilders’ group is currently at a critical juncture, and is an important sector to watch for signs of a real bottom in the markets. The stock market moves in cycles that are correlated, yet not in sync with cycles in the economy. Typically, the stock market will peak ahead of the economy and bottom before a recession has ended. The reason the stock market tends to lead, is that investors will always attempt to position themselves based on what they perceive will happen in the subsequent months.

The homebuilders are usually one of the first groups to lead in a new bull market, as investors attempt to get ahead of an economic recovery, causing an increase in demand for new construction. Of course, we are experiencing a unique bear market, which is intimately tied to real estate, and there is no guarantee this market will follow a similar pattern. The fundamental picture for housing stocks and real estate in general remains bleak at best. However, in looking at the stocks for the homebuilders, it’s interesting to note that they have been recovering some of their recent losses, and while the true reason remains unknown, it bears watching.

The SPDR S&P Homebuilders ETF (NYSE:XHB) attempts to replicate the S&P Homebuilders Select Industry Index. In looking at a chart of the last four years’ worth of trading, it is clear that XHB has been in a persistent downtrend. XHB has been setting lower highs and lower lows while dropping from the $40s to under $10 in early 2009. However, an interesting thing happened in August. XHB was able to set a higher high as it cleared a peak set in May. It has been consolidating since then, while holding over the breakout area. Currently, XHB is inching toward a test of a long-term declining trendline, which has rejected earlier attempts at a breakout. It will be interesting to see how this ETF handles the test. (For more, check out Introduction To Exchange-Traded Funds.)

d
Source: StockCharts.com

In drilling down to some of the individual names, many are also at critical junctures. Toll Brothers (NYSE:TOL), for instance, is in the process of testing an important level. TOL cleared a wide base in August, but quickly fell into a consolidation that has been taking place just above the breakout area. TOL is currently near the lower end of this range and would need to turn higher from here soon, or risk a failed breakout attempt. (For related reading, check out Trading Failed Breaks.)

t
Source: StockCharts.com

Hovnanian Enterprises (NYSE:HOV) is yet another example of a home builder testing an important level. Much like TOL, HOV cleared a base in August and has been consolidating the breakout. HOV has respected the breakout level and is attempting to bounce back to test the upper range of the consolidation. A move above $5.75 would signal a probable resumption of the breakout.

g
Source: StockCharts.com


Lennar Corporation, (NYSE:LEN), on the other hand, clearly broke out from a base, and has been on a strong trend higher. LEN has been respecting the 20-day moving average on pullbacks, and appears to have formed an important bottom in the $8-$10 area. While LEN could easily consolidate some of its recent gains, it’s still looking strong, and is a likely candidate to find support on pullbacks. The September low is a level to watch as a possible signal of a deeper correction if breached.

g
Source: StockCharts.com

Beazer Homes USA (NYSE:BZH) is also in the process of a strong breakout. BZH was hit pretty hard during last year’s run on the homebuilders, and was close to worthless for a while, trading down to 24 cents amid speculation of a bankruptcy. BZH was able to make adjustments, and has been one of the stronger home builders from a stock price performance perspective over the past year. BZH is currently a little extended, but appears to have strong support near the $4 area.

y
Source: StockCharts.com

Bottom Line
The homebuilders remain an interesting group to watch, because much like the financials, it is unknown how much of the current rally is due to overpricing failure on the way down, or due to expected improvement in the fundamentals in the future. As traders, the reason is not as important as watching the price action. The charts have been showing an improvement in these stocks, and with XHB beginning to set higher highs and lows, it’s possible that a bottom has been put in. It will be interesting to see if XHB can survive the upcoming test of resistance, and hold above the lows it set in July. If it does, it would be a very strong signal for the group as a whole. – Investopedia Stock

]]> 4744 2009-10-03 20:36:14 2009-10-04 03:36:14 open open 5-homebuilder-stocks-to-watch publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6836#comments wfw:commentRSS http://zikkir.com/business/6836/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6836 syndication_item_hash 8122dadaaa8a0de1ac0251b0cb3fb639 Banks Turn To Investors For Handout http://www.ethiopianreview.com/business/4743 Sun, 04 Oct 2009 03:37:51 +0000 http://zikkir.com/business/?p=6838 Everyone has heard of the government bailout of the U.S. banking system, but it looks like the investing public may provide round two of the bailout, as the number of banks raising capital in secondary offerings continues to grow. This capital will come in handy during the balance of the credit cycle.

Late in 2008, the federal government created the Troubled Asset Relief Plan (TARP) to assist the U.S. banking system. One part of the TARP was the Capital Purchase Program (CPP), which consisted of preferred stock investments by the government into hundreds of banks. Some companies even reorganized to be eligible for these investments. Both Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) restructured to become bank holding companies.

Dealing with TARP
Almost one year later, some banks have redeemed the preferred stock held by the U.S. Treasury, while others still labor under the restrictions imposed in return for the investment. These include limitations on pay for top executives and dividend policy.

Many banks are raising additional capital to reinforce balance sheets through equity offerings to the public. The capital is needed due to credit losses that are still continuing despite the prospect of economic growth restarting in 2010.

Raising Capital
Huntington Bancshares (Nasdaq:HBAN) recently announced a $350 million offering of stock. The bank actually raised $400 million in the offering after pricing the deal. The capital raise had the desired impact, and after accounting for this deal and a previous one, the bank now has a pro forma tangible common equity to tangible asset ratio of 6.57%, up from 5.69% at the end of the second quarter of 2009.

Synovus Financial Corp. (NYSE:SNV) raised $600 million in equity, up from the original amount of $350 million. The market didn’t like it, however, as the offering will boost the share count by more than 50%, diluting the current stockholders.

Zions Bancorp (Nasdaq:ZION) announced a double offering of $250 million in stock and $450 million of five-year notes at a 7.75% coupon. The size of the note offering was increased above the original amount.

Investor Interest
The common denominator of all these offerings is strong investor interest, as two of the deals increased in size. Zions Bancorp is not doing a traditional offering of stock at one time, but is commencing an equity distribution, where its has an open-end commitment to sell stock up to the $250 million level. It might be some time before the offering’s success can be determined, but if the pattern holds, the bank will have abundant interest from investors.

The Bottom Line
The rash of bank equity offerings has stirred the interest of investors, and means another large capital injection into the U.S. banking system. This will be needed to absorb the continuing credit losses that are sure to come. (To learn more, see The Industry Handbook: The Banking Industry.) – Investopedia Stock

]]> 4743 2009-10-03 20:37:51 2009-10-04 03:37:51 open open banks-turn-to-investors-for-handout publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6838#comments wfw:commentRSS http://zikkir.com/business/6838/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6838 syndication_item_hash 3c78f5a5d332de8c88d91b317ebf5cc0 Profit Using High And Low Turnover Funds http://www.ethiopianreview.com/business/4742 Sun, 04 Oct 2009 03:40:12 +0000 http://zikkir.com/business/?p=6840 The average annual turnover rate for stock funds is not as high as you might think. According to the 2008 Investment Company Institute fact book, the average annual turnover was 59%, right on the 35-year average and much lower than turnovers experienced in the mid-1980s when they were in the 80% range. Now I don’t spend a great deal of time studying mutual funds but that number seems awfully low. As it turns out, it’s irrelevant. Mutual fund turnover ratios have little correlation with fund quality. There are top performing funds with both high and low turnover ratios. At the end of the day, it matters only that they perform. (Learn about mutual fund turnover in our article Turnover Ratios Weak Indicator Of Fund Quality.)

Diverging Styles
In the last few years there have been two star funds that sit at opposite ends of the spectrum. Ken Heebner’s CGM Focus (CGMFX) fund has a current turnover rate of 504% and a five-year annualized rate of return of 8.89%, putting it in the top 2% of its large growth category. Also in the large growth category and in the top 2% is the Amana Trust Growth (AMAGX) fund with a current turnover rate of 7% and a five-year annualized rate of return of 9.45%. Both handily beat the S&P500 and the average large growth fund by 7-8% annually. How they got that performance are two entirely different stories. I won’t get into that today. Instead, I’ll concentrate on each fund’s top five holdings and whether any in the group are worthy of your investment consideration.

CGM Focus Top Five Holdings

Company

Market Cap

Ford (NYSE:F)

$22.0B

Goldman Sachs (NYSE:GS)

$93.24B

Amazon.com (Nasdaq:AMZN)

$39.10B

Baidu (Nasdaq:BIDU)

$13.85B

J.C. Penney (NYSE:JCP)

$7.87B


Blink and You’ll Miss It
CGM Focus’ top holdings are from its latest June 30 quarterly holdings report. Given Mr. Heebner’s penchant for turning the stocks in his portfolio, it’s doubtful his current top five are the same. Nonetheless, I’ll have a look at the fundamentals for each, assessing their chances for long-term success.

Get Free Stock Analysis By Email
Ford has had the most success in the past year, gaining market share in 10 out of the last 11 months. As well, the cash-for-clunkers program put some additional wind in its sales. Having said that, the competition for consumers is intense and its $133 billion in debt is staggering. I’d avoid it.

Goldman Sachs is flying. Second-quarter earnings were a record $4.93 a share, and Q3 earnings will probably be almost as stellar. FBR Capital Markets analyst Steve Selmach raised 2009 EPS to $16.21 from $14.68 and 2010 EPS from $16 to $18. Even though the company’s stock is up 116% year-to-date, Selmach believes it has room to move, and in the long term, so do I.

What can I say about Amazon.com that hasn’t already been said? Later this year the company’s revenue from merchandise other than books, music and movies will overtake the product categories that made it an internet star. I’d never bet against Jeff Bezos. This one’s a no-brainer.

Some consider Baidu the Chinese version of Google. Personally, with all the trouble it’s currently facing over illegal MP3 downloads from its search engine, I’d stay away.

Lastly, J.C. Penney’s back-to-school sales were disappointing, dropping 7.9% in August. Mike Ullman’s a good CEO, but his stores have been too inconsistent. I’d pass. (Read Analyzing Retail Stocks to learn about the most important metrics to look at when analyzing retail stocks.)

Amana Trust Growth Top Five Holdings

Company

Market Cap

Apple (Nasdaq:AAPL)

$163.95B

Humana (NYSE:HUM)

$6.64B

Hewlett Packard (NYSE:HPQ)

$111.00B

Intel (Nasdaq:INTC)

$109.89B

Novartis (NYSE:NVS)

$111.82B

An Islamic Point Of View
The Amana Trust Growth fund is a different breed. In existence since 1994, it invests based on Islamic principles, which prohibit it from buying companies involved in liquor, gambling, insurance and all interest-based financial institutions including banks. Managed by Nicholas Kaiser since inception, you can bet the top stocks in his fund won’t be changing that often with such a low turnover rate. Kaiser’s top five are far safer than Heebner’s. With the exception of Humana, these stocks are all giant caps whose profits in the latest twelve months totaled $22.6 billion. As for Humana, it hasn’t done much year-to-date due to uncertainties created by the ongoing health care reform debate. Up 4.4% compared to 18.6% for the S&P 500, it’s a cash cow with almost as much cash per share as its $39.75 stock price. Fear is keeping this one down. I’d dive in.

Bottom Line
Out of 10 stocks, I like two of Heebner’s (Amazon and Goldman Sachs) and all five of Kaiser’s. Those alone would make a strong portfolio. – Investopedia Stock

]]> 4742 2009-10-03 20:40:12 2009-10-04 03:40:12 open open profit-using-high-and-low-turnover-funds publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6840#comments wfw:commentRSS http://zikkir.com/business/6840/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6840 syndication_item_hash 729160a96391e5601ebd26fb5b9bfc34 Preferred Shares, Yes – But Not Financials http://www.ethiopianreview.com/business/4741 Sun, 04 Oct 2009 03:41:36 +0000 http://zikkir.com/business/?p=6842 Since government intervention in the markets last fall, many investors have shied away from financials in general, not to mention their preferred shares. And many still are concerned that a second shoe is set to drop in the banking sector, with the result that the preferred share market is for many investors the persona non grata of the investment world.

Even a cursory glance through a list of available preferreds reveals that most are issued by large financial institutions. For reasons specific to that industry, it simply makes more sense to raise capital through preferred issuance. But despite this, there still exists a number of exceptions to the rule: non-financials with at least a mid-cap stature, strong cash flows and robust yields.

For income investors who want to partake in the yield boost offered by preferreds, but fear a repeat of the carnage in the financials last fall, the following three stocks may be worth considering.

They’re So Into Labels
Avery Dennison (NYSE:AVY) is a world leader in pressure sensitive labeling materials for the office, retail, automotive and other industrial sectors. The company currently has a preferred share with a 7.87% coupon that yields 10.5% per annum, (NYSE:AVY-A), and which is rated Baa1 by Moody’s rating agency and BB+ by Standard & Poor’s.

Avery Dennison has a market cap of $4 billion, and trades for a mere 0.65-times trailing sales. Just one week ago, financial firm Robert W. Baird upgraded the Avery’s stock for its efforts toward cutting costs, reducing debt and improving cash flow.

A Slicker Preferred Share
Repsol YPF S.A. (NYSE:REP) has a market cap in excess of $31 billion and a preferred share that trades with a current yield of 7.4% (NYSE:REP-A). Moody’s rates the issue Baa3, while S&P gives it a BB+.

Repsol is Spain’s largest diversified oil and gas company, with global drilling operations and large European and Latin American market share. In less than a year, Repsol’s preferred shares have increased in value by over 65%.

Yield on Storage Space
Public Storage Inc.’s (NYSE:PSA) 7.25% Preferred “I” Series stock (NYSE:PSA-I) currently yields nearly 7.50% and is rated Baa1 by Moody’s and BBB by S&P.

PSA is a REIT that specializes in the operation of self-storage facilities in the U.S. and Western Europe.

The Bottom Line
One needn’t fear all preferred shares just because the majority are issued by financials. There’s plenty of yield available for those who dare to dig into the pile and examine a few with solid ratings and healthy dividend yields. (For more, read A Primer On Preferred Stocks.) – Investopedia Stock

]]> 4741 2009-10-03 20:41:36 2009-10-04 03:41:36 open open preferred-shares-yes-%e2%80%93-but-not-financials publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6842#comments wfw:commentRSS http://zikkir.com/business/6842/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6842 syndication_item_hash 71e4e1f62a48cba29639d25e3829286a Kohl’s Strong Among Weak Retailers http://www.ethiopianreview.com/business/4740 Sun, 04 Oct 2009 03:43:36 +0000 http://zikkir.com/business/?p=6844 Kohl’s Corp. (NYSE:KSS), the value-oriented specialty department store chain that has been quietly forging ahead in sales through the latter part of this recession, is poised to continue to do well as this recession ends and the economy eventually gets into recovery. While the chain has seen some earnings falloff in the last year due to the unfavorable economy, it continues to show more resiliency than some of its competitors.

Positive Sales in a Negative Environment
In the notes for the recent year-over-year August sales figures for retailers, Kohl’s was one of the few notable positives, as its sales were up 0.2%. Others, such as Macy’s (NYSE:M), were down 8.1%, while JC Penney (NYSE:JCP) was off 7.9%. For the bigger picture of the year-to-date, Kohl’s was up 1.8%, although its comps were off 2.7%. Still, in the relative economics of the recession, these are encouraging numbers and hint at a healthy trend. Also, Kohl’s earnings estimates for the upcoming quarters are along these mildly positive lines.

Kohl’s Competitive Edge
Kohl’s is regarded as a leading value-price apparel retailer, which is no small feat, given that there are so many specialty apparel retailers focused on that alone. Also, Kohl’s has always had a clear sense of its mid-line place and identification within the department store universe, unlike, for example, JC Penney, which has often been undecided as to whether to be a value-store or a mid-line store. Recently, JC Penney added a value element with its new “She Said” line of clothing for working women. Kohl’s, which had stellar earnings numbers and strong growth prior to the recession, looks set to pick up steam when the economy will eventually shift from recession to recovery.

Permanent Change?
This is not to say that Kohl’s will resume the rapid growth it experienced before the recession, as commentators have prominently mentioned that the consumer’s shift in spending habits may be, if not permanently downward, at least different. A note by Moody’s indicated that even in the near term, department store sales in the second half of this year are likely still to come in with poor numbers, and while economists have suggested we may be looking at a very flat recovery when it happens, Kohl’s still seems positioned relatively better than some of its rivals.

Department stores are addressing the shifting sands of the economy and their business in different ways. Sears Holding Co. (Nasdaq:SHLD), which has been troublesome for years, is trying out the third-party marketplace concept for its internet sales, in an attempt to broaden its reach there. Macy’s, on the other hand, is not going in that direction, but will stick with its traditional retailing approach. Though both Macy’s sales and earnings have been off to a greater degree than Kohl’s, Macy’s idea seems to be that staying the course will work when the economy does, too. And although discounters have done better than the traditional department stores throughout the recession, luxury department stores such as Nordstrom (NYSE:JWN) which has been hit, obviously, is defined by its high-end approach, and pins its hopes on a resurgence of its traditional customers.

Business Down; Stocks Up
Many of the retail stocks have already been highly bid up. Nordstrom is an example of a stock with an already fairly high price, as are most of the others, including Kohl’s, which was trading near its 52-week high at $55.40. The PEs are correspondingly rich, too. Macy’s trades at over 40-times earnings, while Kohl’s is at a more reasonable, but still high, 20. So if you are a value investor, it’s easy to see why these stocks are considered ahead of themselves. Watch for Kohl’s to gradually increase its earnings in the next several quarters, but wait for a pull back in the stock price so you have a better buying opportunity. Even with a tighter retail marketplace, Kohl’s should still outshine many of its competitors, long term. (For more, check out Analyzing Retail Stocks.) – Investopedia Stock

]]> 4740 2009-10-03 20:43:36 2009-10-04 03:43:36 open open kohl%e2%80%99s-strong-among-weak-retailers publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6844#comments wfw:commentRSS http://zikkir.com/business/6844/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6844 syndication_item_hash 7f0688212f23344ac95d8deba1485460 Hyatt’s IPO: Don’t Even Go There http://www.ethiopianreview.com/business/4739 Sun, 04 Oct 2009 03:45:40 +0000 http://zikkir.com/business/?p=6846 According to a September 8 report by Renaissance Capital, a whopping 67 companies have filed S-1 registration statements with the SEC and are looking to go public, up from 29 in March. Renaissance, which specializes in IPO research, suggests most of the current wave is private equity firms looking for some liquidity from their investment portfolio, or mature businesses looking to take advantage of the current aversion to risk. One such company is Chicago-based Hyatt Hotels, filing a registration statement August 5. It appears that the Pritzker family, which owns 85% of the luxury hotel chain, wants to shake loose some cash for its feuding family members. While this may be a great exit strategy for Pritzker progeny, it shouldn’t be at the investor’s expense. In my opinion, if you buy shares in this IPO, you’re just plain nuts. (For an overview of the IPO process, see our IPO Basics Tutorial.)

Return on Cash – Top Hotel Chains

Company

Cash From Operations

Adjusted Revenues

CFO as a % of Revenue

Hyatt

$287M

$2.5B

11.5%

Marriott (NYSE:MAR)

$641M

$4.0B

16.0%

Starwood (NYSE:HOT)

$646M

$3.9B

16.6%

Wyndham Worldwide (NYSE:WYN)

$109M

$4.3B

2.5%

Choice Hotels (NYSE:CHH)

$104M

$305M

34.1%
*Adjusted Revenues excludes revenue from expense reimbursements

Hotel Industry Slumping
Let’s forget for a minute that the travel industry isn’t hemorrhaging cash and that business is just fine. Looking at the table above, you’ll see that several of Hyatt’s competitors are doing a much better job of generating cash from revenues. Sure, Hyatt owns some nice properties, like the Park Hyatt’s in both Chicago and Toronto, but so too does Marriott and Starwood, operating the Ritz-Carlton and St. Regis respectively. It’s a competitive business that the Pritzkers have been a part of since 1957. Nostalgia’s great for the collectibles market but it means little in the hotel business. The Hyatt IPO might seem like an interesting investment but if you can get a better return elsewhere – which you can – then you should do that.

Affordable Is the New Trend
Americans have become more frugal because of this recession. Examples abound where consumers are trading down, whether its toilet paper or hotel rooms. Conspicuous consumption has gone away and probably won’t come back for some time. This means lower-priced hotel brands like those offered by Choice Hotels will become a real alternative to Hyatt and other luxury chains. For instance, in the second quarter, Choice’s average daily rate across its various brands was $70.53. This compares to $116 for a night’s stay at a Hyatt. It might not seem like a lot to the rich, but for the average working stiff, paying 60% more for a place to sleep while visiting relatives makes little economic sense. Despite this obvious advantage, Choice’s profits are down, though not nearly as much as Hyatt, which lost $36 million in the first six months of the year compared to a $41.8 million profit for Choice. Perhaps that’s why Citi Investment Research analyst Michael Bilerman initiated a “buy” rating September 16 for the economy chain. Bilerman believes hotel chains should go through a sustained period of earnings growth once a rising demand meets a slowing supply and that, in turn, should help stock prices. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)

Bottom Line
While it’s very tempting to take what the Citi analyst has said about hotel industry revitalization and apply that rationale to Hyatt. Don’t. There are three alternatives (Choice, Marriott and Starwood) available without the hype of an IPO obscuring the true value of its stock price. You’d be nuts to choose Hyatt over any of them. However, if you must get your Pritzker hit, buy Berkshire-Hathaway (NYSE:BRK.B) stock. It owns 60% of Marmon Group, the Pritzker’s industrial conglomerate. – Investopedia Stock

]]> 4739 2009-10-03 20:45:40 2009-10-04 03:45:40 open open hyatt%e2%80%99s-ipo-don%e2%80%99t-even-go-there publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6846#comments wfw:commentRSS http://zikkir.com/business/6846/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6846 syndication_item_hash 13b9caa4696e2ac9f8b78935fec1c1f3 Payment Processors: Cash Checks For Your Portfolio http://www.ethiopianreview.com/business/4738 Sun, 04 Oct 2009 03:47:21 +0000 http://zikkir.com/business/?p=6848 One thing is as certain as death and taxes: People like to get paid. People like to cash checks and receive electronic wire transfers that deliver cash to them. The business of paying people and sending money is big business. That means there are opportunities for investors among companies that provide payroll services and payment processing.

Of course, the companies involved in these businesses are considered financials and as such, 2008 was not kind to payment processors. That being said, payment processors face their own headwinds, especially in an environment marked by rising unemployment, dwindling sales and low interest rates.

Those factors were the reason Goldman Sachs recently downgraded the payment processing group to “neutral” from “attractive.”

Don’t be discouraged. One downgrade doesn’t mean selective stock pickers can’t find profitable plays among payment processors. Let’s take a look at a few here.

Potential With Paychex?
Paychex (Nasdaq: PAYX) 52-Week Change: (-5.11%) Dividend Yield: 4.2%
Paychex provides payroll processing services, which sounds like it would be a recession-proof business, but Goldman Sachs noted that Paychex is struggling with limited growth prospects due to slack demand for its services from small and medium-sized businesses. Still, in the past three months Paychex is up 15%, but that lags the 20% performance delivered by its home index, the Nasdaq.

Paychex reports fiscal first-quarter results on September 24 and the average analyst estimate calls for earnings of 34 cents a share on sales of $503 million. Paychex has consistently grown its earnings over the past decade, averaging an annual increase of 12.6% from 1999 to 2008. Analysts expect the company to earn $1.33 a share this year and $1.44 next year.

Though the stock is rated “sell” by Goldman, Paychex might be an inviting play for income investors with a 4.2% yield. The company has raised its dividend for 19 straight years and the five-year dividend growth rate is nearly 25%. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)

Tough Times For Total System Services
Total System Services (NYSE: TSS) 52-Week Change: (-8.6%) Dividend Yield: 1.7%
Total System Services provides payment processing services and debit cards, and the Goldman Sachs analysts that slapped Paychex with a “sell” rating did the same to Total System. The analyst said the company is hampered by its exposure to the contracting credit issuance market.

There are some positive things to consider about Total Systems. Morningstar gives the stock four out of five stars and a $20 price target. Value Line says the company’s earnings predictability ranks in the 90th percentile and Zack’s assumes earnings of $1.12 a share in 2009 and $1.21 a share in 2010 and that gives the Total System a P/E ratio of just under 14, low by historical standards.

The bottom line with Total System is that once the economy gets going again and consumers are swiping their debit cards more often, the company will benefit.

The King Of Wire Transfers
Western Union (NYSE: WU) 52-Week Change: (-22.4%) Dividend Yield: 0.2%
If there was a ubiquitous brand name among payment processors, Western Union would be it. The stock escaped actually found favor with the Goldman Sachs analyst that hit Western Union’s rivals. He rates Western Union a “buy,” citing the company’s direct consumer exposure and long-term growth prospects.

Western Union is implementing new rules that will allow customers to send more money to family and friends in Cuba and that could prove lucrative for the company going forward. Western Union also recently expanded its cross-border business-to-business offerings by acquiring Custom House Ltd. for $370 million.

Western Union has gained over 60% in the past six months and if it can find a way to get to $25, still a long way off, it could stretch past its 52-week high of $26.23. With the most long-term growth potential of the stocks mentioned here, Western Union may be cheap at less than 15 times forward earnings.

One For Dividends, One For Growth
Paychex is worth embracing on the basis of its dividend and at a fair valuation, investors might be able to get some decent growth on the cheap with Western Union. Total System Services is the riskiest play of the group, at least until consumers decide they want to start spending again. – Investopedia Stock

]]> 4738 2009-10-03 20:47:21 2009-10-04 03:47:21 open open payment-processors-cash-checks-for-your-portfolio publish 0 0 post syndication_source zikkir syndication_source_uri http://zikkir.com/business rss:comments http://zikkir.com/business/6848#comments wfw:commentRSS http://zikkir.com/business/6848/feed syndication_feed http://www.zikkir.com/business/feed syndication_permalink http://zikkir.com/business/6848 syndication_item_hash cfec2c4979b4bd4aadcd10ff2033c8e5