Starbucks toilet coffee prompts anger in Hong Kong; It has been using the water from a tap in a toilet to make beverages since its opening in October 2011

Starbucks toilet coffee prompts anger in Hong Kong

It has been using the water from a tap in a toilet to make beverages since its opening in October 2011. -AFP
Thu, May 30, 2013

HONG KONG – A Starbucks cafe in Hong Kong’s posh financial district which used water from a tap near a urinal to brew coffee prompted a torrent of angry reactions from customers Thursday. The coffee shop, in the famous Bank of China Tower, has been using the water from a tap in a toilet to make beverages since its opening in October 2011. Images from local newspaper Apple Daily showed the tap with a sign that said “Starbucks only” a few feet away from a urinal in the dingy washroom, which the paper said was in the building’s carpark. “Totally disappointed! The initial decision by Starbucks to use water from toilet is a clear sign of your company’s vision and the level of (dis)respect your company has for the health and mind of your customers.” Kevin L wrote on the Starbucks Hong Kong Facebook wall. Read more of this post

“China Dream” rhetoric by President Xi: “There are some people in this country who become others’ punchbags and their biggest Chinese dream is simply to live with a bit more dignity”

China Officials Probed for ‘Parading’ Arrested Girl: Media

By Agence France-Presse on 2:37 pm May 29, 2013.
Beijing. Two Chinese officials allegedly paraded a 13-year-old girl through the streets in handcuffs for splashing a government vehicle, state media reported on Wednesday after images of the incident provoked outrage online. A party secretary in Kele, in the southern province of Guizhou, and a policeman were being investigated over the matter, the Global Times said. The girl was accused of deliberately splashing “dirty water” on a government car, drenching another local official, after a row about her family’s street stall, the Sichuan Daily reported. Party secretary Yuan Zehong ordered the girl arrested and told more than 30 policemen to “beat up” her aunt after she protested at the handcuffing, claimed a post on Sina Weibo, China’s Twitter-like social messaging service. It included photos of the incident and alleged that the girl had been made to walk for 20 minutes in public while wearing the handcuffs. Read more of this post

Fundamentals of Web for Non-Developer

While the link between profits and stock returns should be clear, historically investors have not fully appreciated the long-term persistence of profits.

Profitability Matters

While the link between profits and stock returns should be clear, historically investors have not fully appreciated the long-term persistence of profits.

By Alex Bryan | 05-29-13 | 06:00 AM | Email Article

It’s surprising that value stocks have done as well as they have. Value stocks tend to be less profitable than their growth counterparts, and yet they have historically traded at steep enough discounts to outperform growth stocks in nearly every market studied over long horizons. But price is only one aspect of value. Controlling for risk, a company’s future profitability drives its intrinsic value. While companies that consistently generate high profits command higher valuations than traditional value stocks, the market has also historically undervalued these companies. This anomaly is consistent with Warren Buffett and Charlie Munger’s philosophy that it is better to buy a great company at a fair price than a fair company at a great price.

Profitability measures how productively a company uses its investors’ capital and assets. Simply comparing net income or earnings per share across companies does not adequately capture this idea. It is often possible for a company to boost its net income by acquiring more assets, but that does not necessary improve its productivity–just the opposite. The marginal returns to capital tend to diminish with size. In other words, investors often get less “bang for the buck” for each additional dollar invested in the business. In order to control for differences in invested capital and assets, researchers define profitability using metrics, such as return on invested capital, gross profits/assets, and adjusted operating income/book value of equity. Read more of this post

‘Smart beta’, a new weapon in your armoury

May 24, 2013 5:55 pm

‘Smart beta’, a new weapon in your armoury

By David Stevenson

No longer a straight choice between active and passive investing, says David Stevenson

The term “smart beta” doesn’t exactly roll off the tongue. Nor is it likely to become a catchphrase, as in: “I’ve made an absolute killing on my smart beta funds.” But smart beta is something investors could be hearing a lot more about in the years ahead.

My colleague Merryn Somerset Webb outlined the structural limitations of the fund management industry last week.

Basically, most managers are doomed to hug the benchmark because the industry is focused on gathering assets. Better to fail conventionally than to succeed unconventionally, as Keynes said. Passive investing might reduce the costs, but invariably commits you to a momentum investing strategy because most indices are weighted by market capitalisation. The bigger a company gets, the more you have invested in it. Over time, the noise of the market will even out the rises and falls of individual shares and you’ll get the underlying market return, also known as the beta of the index. Read more of this post

If investing is poker, fund managers are a busted flush; The structure of the industry condemns many of them to underperform

May 17, 2013 3:36 pm

If investing is poker, fund managers are a busted flush

By Merryn Somerset Webb

The structure of the industry condemns many of them to underperform

Imeet a lot of fund managers. I tend to like them. Fund managers are mostly charming company. They are, on the whole, clever, interesting and full of sensible sounding ideas. And if you see them at a conference they often have something nice you can take home for your kids.

I’ve written here before about how all these nice men purport to be into value investing (buying cheap stuff) or at least quality value investing (buying good stuff at fair prices) at the moment. They tend to tell me they are running their fund just as Warren Buffett used to run his before it got way too big. They have strict valuation criteria they aren’t going to deviate from. They defy consensus, shut their ears to short-term noise and focus on the long term. Read more of this post

Courage under fire: Learning from a real Thai hero

Courage under fire: Learning from a real thai hero

Published: 30 May 2013 at 00.00


Many stories have been told of heroism during World War II. The bold and courageous action of Oskar Schindler, who saved 1,200 lives, was the basis of a novel and blockbuster movie, Schindler’s List, which won seven Oscars including Best Picture in 1994. Irena Sendler, a Polish nurse, is also praised as a heroine who smuggled 2,500 children to save them from the Holocaust.

In Thailand, there is a local hero who dared to risk his life and his family fortune to save the lives of numbers of Allied prisoners of war. It is estimated that at least 12,000 Allied PoWs died during almost three years, from late 1942 to August 1945, building the infamous Death Railway for the occupying Japanese. But many more would have perished had Boonpong Sirivejjabhandu not risen to the occasion.

Crises make heroes: Boonpong Sirivejjabhandu was a businessman who owned a Thai traditional medicine business and a general store in Kanchanaburi province, which had been passed to him by his father Mor Khein, a Thai traditional doctor. He was also a mayor of Kanchanaburi from 1942-45 during World War II. His public responsibilities brought him into contact with the Japanese troops, who were determined to build a bridge across the River Kwai to improve the logistics capability of the Japanese army. Read more of this post

C.E.O.’s Don’t Need to Earn Less. They Need to Sweat More.

May 29, 2013

C.E.O.’s Don’t Need to Earn Less. They Need to Sweat More.



One recent Thursday, G. Steven Farris, the chairman and C.E.O. of the poorly performing oil-and-gas company Apache, stood before a few hundred shareholders who were about to vote on his salary. Farris, who was hoping to earn well over $10 million for this year, listed a number of his accomplishments. “We’re the No. 1 driller in the Permian Basin,” he said, referring to the oil reserves in West Texas and New Mexico. But some shareholders, most likely mindful of the company’s falling stock price, noted that the proposed pay package seemed out of whack. Still, the tally was a nail-biter: 49.8 percent of the votes favored giving Farris the bump.

Most C.E.O.’s used to be able to handle their pay negotiations in private, but the Dodd-Frank reforms, which were passed in 2010, now give shareholders the right to vote on executive compensation. This has helped usher in a so-called “say on pay” revolution, which tries to stop executives from making more money when their companies don’t do that well. In Switzerland, a recent nationwide referendum, passed 2 to 1, gave shareholders the right to restrict the pay for the heads of Swiss companies. The European Union is likely to vote on a similar measure by the end of the year. Read more of this post

Sales straight from ‘the farm gate’; Some creative industry entrepreneurs are using direct-to-consumer business models

May 29, 2013 3:42 pm

Sales straight from ‘the farm gate’

By Ian Sanders

In a hot and sweaty basement in Brighton, on the English south coast, visitors to The Great Escape music festival are attending a keynote address about how to “do it yourself” in the music industry. “You’ve got to think like a small business because that’s what you are,” singer-songwriter Billy Bragg tells his audience. Mr Bragg, also famous for his political activism and his support for striking coalminers in the 1980s, might seem an unlikely entrepreneurial role model, but he recently started cutting out intermediaries in order to sell his music direct to the consumer. Now in his fourth decade touring and selling records, he has had to reinvent his business model to survive.

Content-creators, from musicians to authors, have the opportunity to sell their work themselves, with fast and effective digital tools for everything from ecommerce to promotion. Mr Bragg’s latest album Tooth&Nail , released in March, was launched in record stores and via Amazon, but he also encouraged fans to buy direct from his website by including a signed print of the album artwork. Read more of this post

Coursera partners with 10 new US universities not just for online courses, but to add MOOC to their classes too

Coursera partners with 10 new US universities not just for online courses, but to add MOOC to their classes too

Emil Protalinski 30 May 2013

Coursera today announced it has partnered with 10 US state university systems and public university flagships to bring their faculty and course content online, plus a little more. The massive open online course (MOOC) provider regularly expands the list of its schools, but this time, it’s a two-way street: the schools are going to be adding MOOC to their own courses, too, collaborating on existing content.

The startup says the goal with this latest round is to “explore the possibilities” of using MOOC technology and content to “improve completion, quality, and access to higher education,” both across the combined audiences of these schools (approximately 1.25 million enrolled students) as well as among Coursera’s global classroom of learners (over 3.6 million as of May 2013). The schools are already pushing pilot programs, which will be evaluated based on their effectiveness in enhancing student success. Read more of this post

The More You Think About Money, The Less People Like You

The More You Think About Money, The Less People Like You

Denise ChowLiveScience | May 29, 2013, 9:51 PM | 1,425 | 3

WASHINGTON — Subtle reminders of money can affect the way people behave in social settings, causing them to be less engaged with others, suggests new research.

A group of researchers discussed results from ongoing investigations into how money impacts social relationships here at the 25th annual meeting of the Association for Psychological Science (APS) on Sunday (May 26).

“Money holds lots of different associations for different people,” said Kathleen Vohs, an associate professor of marketing in the Carlson School of Management at the University of Minnesota in Minneapolis, who moderated an APS panel on the topic. “There can be social benefits and social costs to reminders of money.” Read more of this post

As Glaciers Melt, Alpine Mountains Lose Their Glue, Threatening Swiss Village

May 29, 2013

As Glaciers Melt, Alpine Mountains Lose Their Glue, Threatening Swiss Village



Tourists walking along a stream originating from the Lower Grindelwald Glacier in Switzerland. The glacier once extended  through the gorge.

GRINDELWALD, Switzerland — Marco Bomio recalls that bright Sunday morning in June 2006 as if it were yesterday. Mr. Bomio, 59, a school principal and mountain guide, attended a religious service on a high mountain meadow to mark the founding of a local guide group.

“Suddenly we saw this immense cloud,” he said over coffee in a wood chalet typical of this Alpine village. “Normally, it might have been snow. But in June?”

“Then we saw that it wasn’t snow,” he went on. “It was rock dust: part of the mountain had come down.”

Grindelwald, population 3,800, lies in the foothills of a wall of Alpine peaks, rising to more than 13,000 feet. It is also home to two of Switzerland’s largest glaciers, the Upper and Lower Grindelwald Glaciers, which for millenniums have snaked their way through Alpine gorges toward the town.

With global warming, the glaciers are melting. Once stretching to the edge of town, they now end high in the mountains. Moreover, their greenish glacial water is forming lakes. In summer, when the melting accelerates, floodwaters threaten the area. But the avalanche witnessed by Mr. Bomio shows that the shrinking of the glaciers removes a kind of buttress supporting parts of the mountains, menacing the region with rock slides. Read more of this post

Gene Therapy Shields Against Deadly Flu

Updated May 29, 2013, 6:53 p.m. ET

Gene Therapy Shields Against Deadly Flu


Researchers said Wednesday they have developed a gene-therapy technique that in animal studies provided broad protection against flu viruses linked to deadly human pandemics.

If verified in people, the approach could become an important tool in the effort to ward off viral infections such as H5N1 that originate in animals and aren’t affected by human vaccines.

Outbreaks of H5N1, a bird flu, have caused 374 deaths around the globe in the past decade, according to the World Health Organization, and provoked concern among public-health officials about the potential for far deadlier pandemics. Read more of this post

Intensive-Care Patients Need Treatment to Stop Deadly Bug

Intensive-Care Patients Need Treatment to Stop Deadly Bug

Disinfecting all intensive-care patients to remove potentially deadly bacteria can prevent infections better than testing for a superbug and targeting only those who carry it, researchers said.

Patients in hospital intensive-care units are particularly vulnerable, weakened so that normally harmless microbes can make them ill and sensitive to acquiring infections from others. Hospitals in the U.S. typically test for bacteria like methicillin-resistant Staphylococcus aureus when patients are admitted and isolate those who show signs of harboring it to stop the spread. Read more of this post

Disney gets into wearable tech with the MagicBand

Disney gets into wearable tech with the MagicBand

Matthew Panzarino

29 May 2013

Disney is introducing a new MagicBand device that ties into a new service that allows theme park visitors to make purchases and reserve experiences. Thomas Staggs, Chairman of Walt Disney Theme Parks and Resorts spoke about them at D11 today.

The new MagicBands will be enabled at Walt Disney World over the next few months after a roughly two-year pilot program, and those will be tied into the MyMagic+ service, which Disney has been working on for around six years. The bands are a colorful wrist device made of rubberized plastic that will allow visitors to the park to tap on check in points to enable various experiences. Read more of this post

“Twitter is the social soundtrack for TV”; Twitter CEO Costolo Says Investing ‘Heavily’ in TV

Twitter CEO Costolo Says Investing ‘Heavily’ in TV

Twitter Inc. Chief Executive Officer Dick Costolo said he sees television companies as valuable partners for its microblogging service and is investing accordingly.

“Twitter is the social soundtrack for TV,” Costolo said today in an onstage interview at the D: All Things Digital conference in Rancho Palos Verdes, California.

“We’ve decided to invest heavily in that,” said Costolo. “There’s a bunch of ways we can be complementary to broadcasters.”

Twitter is adding video content to bolster ad revenue in a bid to reach $1 billion in sales by 2014. Earlier this month, Twitter announced a partnership with the National Basketball Association to stream game highlights, as well as a deal with ESPN, a unit of Walt Disney Co., to show snippets from soccer matches, college football and other sports. Read more of this post

Oil and Gas Pose Challenge to Norway’s Tech Startups

May 29, 2013, 4:14 p.m. ET

Oil and Gas Pose Challenge to Norway’s Tech Startups


For those who follow Europe’s tech scene, naming startups from the Nordic/Baltic region wouldn’t be too hard.

There are any number from Sweden (music streaming site Spotify AB, payment service Klarna AB, games maker Mojang AB). Finland is host to Angry Birds maker Rovio. Even tiny Estonia has virtual fitting-room-provider But Norway? The browser company Opera Software OPERA.OS +0.23% ASA and…and, unless you are in the oil and gas business, chances are you are going to struggle. Read more of this post

Prosecutors begin raids as South Korea launches tax probe into powerful chaebols

May 29, 2013 3:25 pm

Prosecutors begin raids as South Korea launches tax probe

By Simon Mundy in Seoul

Prosecutors raided the home of one of South Korea’s most prominent businessmen on Wednesday, amid growing scrutiny of offshore financial arrangements made by the country’s corporate elite.

The search of the Seoul residence of Lee Jay-hyun, chairman of the conglomerate CJ Group, was part of an investigation into “allegations of tax evasion through overseas bank accounts”, the company said, while declining to comment further. Mr Lee was not available for comment.

Meanwhile, the authorities said they had launched a probe into 23 companies and individuals suspected of tax evasion through shell companies in tax havens. Read more of this post

Struggling Korean builders tell employees to show loyalty: buy apartments

Struggling Korean builders tell employees to show loyalty: buy apartments

5:35pm EDT

By Ju-min Park

GOYANG, South Korea (Reuters) – Five years after the global financial crisis, South Korean construction workers are feeling the pinch more than ever as they shoulder a mountain of debt from a real estate bust that has cast a long shadow on the country’s growth prospects. Facing the specter of bankruptcy, some construction firms persuaded their staff to take up loans to mop up unsold apartments. “There was pressure. There’s nowhere else in the world where there’s a parallel to these practices,” said a construction worker, who declined to be identified due to the sensitivity of the matter.

“Loyalty and hierarchy is still strong in South Korea and especially in the construction companies which are run like the armed forces,” he said, adding that his employer Poonglim Industrial Co Ltd had asked him to buy two apartments, which meant he had to borrow 800 million won ($712,800). Read more of this post

There’s No Accounting for China’s Accounting; A deal between Beijing and Washington to share audit information still leaves U.S. investors exposed

May 29, 2013, 11:31 a.m. ET

There’s No Accounting for China’s Accounting

A deal between Beijing and Washington to share audit information still leaves U.S. investors exposed.


For a brief moment last week it looked like there had been a break in a serious regulatory dispute between the U.S. and China. On Friday, Washington and Beijing announced a deal for some information sharing between them concerning audits of U.S.-listed Chinese companies embroiled in accounting scandals. But there’s a whole lot less to this compromise than meets the eye, and those listings may still be in jeopardy.

Under Friday’s agreement, Chinese regulators will allow the U.S. Public Company Accounting Oversight Board (PCAOB) to access audit documents from Chinese accounting firms for PCAOB’s investigations. Washington has bristled for a long time that whenever a U.S.-listed Chinese company implode in an accounting scandal, American authorities have little or no access to the auditing documents that would allow for a thorough investigation and perhaps sanctions. Read more of this post

Accelerators Start Revving Up Industries Well Beyond Tech

May 29, 2013, 3:40 p.m. ET

Accelerators Start Revving Up Industries Well Beyond Tech


Accelerators that provide seed funding and mentorship to technology startups produce some of the hottest companies in Silicon Valley. Now just about every industry is trying a “boot camp for business” model.

In Palo Alto, Local Food Lab Inc. started Food & Farm Startup Accelerator last year to boost chefs and farmers, more than engineers and MBAs. And in San Francisco, the nonprofit Code for America Accelerator, which started in July 2012, helps public-service providers score work with government agencies.

Meanwhile, the seed fund and accelerator Matter Ventures, which launched in December, enlists media entrepreneurs who want to make money while upholding the values of traditional journalism. Read more of this post

Reserve Bank of Australia Governor Glenn Stevens has gone an interest-rate cut too far for Mrs. Watanabe, as Japan’s households look closer to home for returns

Japanese Housewives Cooling on Aussie Uridashi

Reserve Bank of Australia Governor Glenn Stevens has gone an interest-rate cut too far for Mrs. Watanabe, as Japan’s households look closer to home for returns.

Aussie uridashi sales slumped 71 percent to A$1.8 billion ($1.7 billion) this year, even as A$9.4 billion in such debt matures in 2013, data compiled by Bloomberg show. The currency accounted for 10 percent of bonds offered to Japanese individuals this year, compared with 64 percent for yen-denominated offerings and a total of 28 percent since 2006. Japanese investors cut Aussie debt holdings by a record 1.7 trillion yen ($16.7 billion) in the five months through March, Ministry of Finance data show.

Japanese individual investors, a group often nicknamed Mrs. Watanabe because many are housewives, are piling into local assets as unprecedented Bank of Japan monetary easing drives the best equities gains in the developed world. Pacific Investment Management Co. said yesterday Stevens is likely to lower the RBA’s benchmark interest rate again after cutting it on May 7 to a record 2.75 percent. The yield premium benchmark Australian bonds offer over Japan’s touched a half-year low this month.

“What is becoming clear is that Japan is falling out of love with new buying of Australian dollar assets,” Martin Whetton, a Sydney-based interest-rate strategist at Nomura Holdings Inc., wrote in a May 25 e-mail. “If the RBA continues to cut rates, the investment is likely to remain light.” Read more of this post

Thailand cuts rates to undermine baht; what’s next – capital controls? Asia might find itself in the grip of a cycle where further cuts and controls are the only way to maintain competitiveness

Thailand cuts rates to undermine baht; what’s next – capital controls?

May 29, 2013 2:18pm by Jake Maxwell Watts

Thailand became the latest of several Asian countries to actively encourage the depreciation of its currency on Wednesday, continuing a trend that is likely to leave other regional economies with little choice but to follow.

Its central bank cut interest rates by 25 basis points from 2.75 per cent to 2.5 per cent a year, in an attempt to stem a rise in the baht, which hit a 16-year high last month. The Thai finance ministry is considering adding capital controls to the mix.

The rate cut is unlikely to do enough to resolve a long-standing dispute between the central bank’s governor, Prasarn Trairatvorakul, and Thailand’s finance minister Kittirat Na Ranong about whether a cut is the best way to discourage foreign capital inflows. Read more of this post

“Panic is building on panic”: Iron ore hit by Chinese steel doldrums amid widespread anxiety about the outlook for demand, and concerns about overcapacity in the industry

May 29, 2013 8:42 pm

Iron ore hit by Chinese steel doldrums

By Jack Farchy in London

Iron ore prices tumbled to a seven-month low on Wednesday as negativity spread through the Chinese steel industry.

Analysts said that both traders and steelmakers in China, which accounts for 60 per cent of global seaborne iron ore imports, had been selling down stocks amid widespread anxiety about the outlook for demand, and concerns about overcapacity in the industry.

“Panic is building on panic,” said Melinda Moore, bulk commodity strategist at Standard Bank in London. Read more of this post

Risk of Bank Failures Is Rising in Europe, E.C.B. Warns

May 29, 2013

Risk of Bank Failures Is Rising in Europe, E.C.B. Warns


FRANKFURT — The European Central Bank warned on Wednesday that the euro zone’s slumping economy and a surge in problem loans were raising the risk of a renewed banking crisis, even as overall stress in the region’s financial markets had receded.

In a sober assessment of the state of the zone’s financial system, the E.C.B. said that a prolonged recession had made it harder for many borrowers to repay their loans, burdening banks that had still not finished repairing the damage caused by the 2008 financial crisis. Read more of this post

China Failure to Grow With $1 Trillion Credit Seen as Li Warning

China Failure to Grow With $1 Trillion Credit Seen as Li Warning

By Bloomberg News  May 29, 2013

China’s economy is proving less responsive to credit, escalating pressure on Premier Li Keqiang to strengthen the role of private enterprise.

The government’s broadest measure of credit rose 58 percent to a record 6.16 trillion yuan ($1 trillion) in January-to-March, when gross domestic product gained 7.7 percent, compared with 8.1 percent a year earlier. Each $1 in credit firepower added the equivalent of 17 cents in GDP, down from 29 cents last year and 83 cents in 2007, when global money markets began to freeze, according to data compiled by Bloomberg.

The diminishing returns to lending heighten focus on the need for what the International Monetary Fund said yesterday are “decisive” policy changes in the world’s second-largest economy. Without a refocus away from state-approved projects, Li and President Xi Jinping risk overseeing both a further slowdown in growth and an increase in non-performing loans. Read more of this post

170,000 Living in Subdivided Flats in Hong Kong: Study

170,000 Living in Subdivided Flats in Hong Kong: Study

By Agence France-Presse on 2:45 pm May 28, 2013.
High rise buildings in Hong Kong on May 23. (AFP Photo/Philippe Lopez)

Hong Kong. More than 170,000 people in Hong Kong are living in cramped subdivided flats, a government-commissioned study has found, underlining the scale of the city’s housing crisis. Tens of thousands of low-income families and immigrants are forced to live in the tiny subdivided units, unable to afford sky-high rents in the crowded city of seven million. Hong Kong’s Beijing-backed leader Leung Chun-ying has promised to make tackling the housing problem a “top priority” by boosting the number of new homes for Hong Kong people. But the study showed the problem is even greater than previously thought, with an estimated 171,300 people living in 66,900 subdivided flats.

Read more of this post

Between cronyism and rebalancing in China

Between cronyism and rebalancing in China

Kate Mackenzie

| May 29 12:07 | 5 comments | Share

Chinese premier Li Keqiang on Monday:

China needs growth of about 7 percent to double per capita gross domestic product by 2020 from the level in 2010, Li said yesterday in Berlin after meeting with Chancellor Angela Merkel during his first trip abroad as premier.

Although China has a formal target of 7.5 per cent growth for this year, and that was still kind-of-maybe assumed to be the ongoing target figure for the next few years, no-one was hugely surprised at the declaration of a 7 per cent target. Read more of this post

Copper Users Squeezed as Glut Clogs Warehouse Lines: Commodities

Copper Users Squeezed as Glut Clogs Warehouse Lines: Commodities

At a time when copper stockpiles are rising to the highest in a decade, manufacturers are paying the biggest premiums for the metal in as much as seven years as financing deals lock up supply and extend lines at warehouses.

While inventories tracked by the London Metal Exchange more than doubled in the past year and supplies exceed demand for the first time since 2009, getting copper is becoming more expensive and taking longer. Buyers in Shanghai pay $135 a metric ton more than LME futures, up from $55 last year, Metal Bulletin data show. Luvata Malaysia Bhd., a circuit-board parts maker, stopped buying from local LME stockpiles after waiting times rose to three months from three days at the start of 2012. Read more of this post

Bond Default ‘Could Occur This Year’ in China; The founder of a domestic ratings agency says fears are mounting and the government may not be able to save the day

05.29.2013 17:27

Bond Default ‘Could Occur This Year’

The founder of a domestic ratings agency says fears are mounting and the government may not be able to save the day

By staff reporter Yang Na

(Beijing) – Calling for attention to the hidden risk in the country’s bond market, a credit rating expert has warned investors that a real bond default could happen this year.

The warning came from Mao Zhenhua, founder of China Cheng Xin International Credit Rating Co. Ltd. (CCXI), a domestic ratings agency. Debt problems are a main trigger of financial turmoil, he said at the company’s annual conference on May 28. Read more of this post

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