Chateau d’Yquem ’90 Extends Decline to Lowest Level Since 2009

Chateau d’Yquem ’90 Extends Decline to Lowest Level Since 2009

A case of 1990 Chateau d’Yquem, Bordeaux’s top-ranked Sauternes dessert wine, sold for 2,700 pounds ($4,050) on the Liv-ex market yesterday, extending a 15-month drop and taking it to its lowest level since October 2009.

The wine sold for 20 percent less than the 3,380 pounds at which it traded in March last year, having peaked at 3,400 pounds in September 2011, according to data on London-based Liv-ex’s Cellar Watch website. Read more of this post

Fittings maker Grohe attracts bid interest from rivals; Grohe, which has a 8% global market share, posted sales of 1.4bn euros, EBITDA 273m euros

Fittings maker Grohe attracts bid interest from rivals – sources

1:10pm EDT

FRANKFURT (Reuters) – German bathroom fixtures maker Grohe GROH.UL has attracted bidding interest from several rivals, which have been asked to submit tentative offers by the end of next week, three people familiar with the process told Reuters.

Grohe’s owners, investor TPG Capital TPG.UL and the private equity arm of Credit Suisse (CSGN.VX: Quote,ProfileResearchStock Buzz), are running a so-called dual track process that may alternatively result in a stock market listing of Europe’s biggest bathroom equipment maker in the autumn. Read more of this post

Brazil Signals World’s Biggest Key Rate Increase Far From Over; Brazil Raises Rate to 8.5% as Inflation Undermines Growth

Brazil Signals World’s Biggest Key Rate Increase Far From Over

Brazil’s central bank raised the benchmark interest rate a third consecutive time and said it was giving continuity to the world’s biggest tightening cycle, signaling increases may be extended through year-end as policy makers battle inflation.

The bank’s board, led by President Alexandre Tombini, yesterday raised the benchmark Selic (BZSTSETA) rate by 50 basis points to 8.50 percent, as forecast by all 51 analysts surveyed by Bloomberg. The move led Itau Unibanco to reiterate its call for a rate increase in each of the three meetings left this year. Read more of this post

Indonesia Raises Rate More Than Forecast to 6.5% on Inflation

Indonesia Raises Rate More Than Forecast to 6.5% on Inflation

Bank Indonesia raised its key interest rate more than forecast to bolster a weakening currency and ease inflation pressures after the government increased fuel prices last month.

The central bank boosted the reference rate by 50 basis points to 6.5 percent, Governor Agus Martowardojo said in Jakarta today. The outcome was predicted by three of 19 economists surveyed by Bloomberg News, with the majority expecting a 25 basis-point increase. It also boosted the deposit facility rate to 4.75 percent from 4.25 percent. Read more of this post

How Did Dropbox Scale To 175M Users? A Former Engineer Details The Early Days

How Did Dropbox Scale To 175M Users? A Former Engineer Details The Early Days

MIKE BUTCHER

posted 6 hours ago

Ladies and Gentlemen, we interrupt our normal programming about crazy entrepreneurs and even crazier VCs to bring you a little learning from the world of Engineering. Remember that? Recently Dropbox was in the news for revealingthey’d hit 175 million users, and daring to say they could replace the hard drive. Big words. But what’s the engineering back-story of how they got there? How do successful startups scale, in technical terms, to hundreds of millions of users? It turns it one of the ways it became successful was by creating a very simple and flexible platform early on. Read more of this post

IPhones Stuck to Windshields Threaten Dashboard Maps

IPhones Stuck to Windshields Threaten Dashboard Maps

Tim Nixon, chief technology officer of General Motors Co. (GM)’s OnStar service, knew something was amiss when he saw his two sons taking the “suction-cup approach” to in-car navigation. They would turn their iPhones sideways, stick them to the windshield and use a free map app to find their way.

That represented a rejection of their father’s life’s work: Convincing car buyers to pay $1,500 or more for a dashboard navigation system with an 8-inch screen and elaborate graphics. Rather than scold his young-adult sons, Nixon came up with an answer: GM (GM) now offers a $50 map application for iPhones that can play on the dashboard touchscreen of a $12,170 Chevrolet Spark. Read more of this post

Chinese chipmakers in ‘bloody’ price war

Last updated: July 10, 2013 11:41 am

Chinese chipmakers in ‘bloody’ price war

By Sarah Mishkin in Taipei

Chinese chipmakers are engaging in “bloody” competition that could accelerate production of cheap tablets, already one of the fastest-growing areas in the consumer electronics industry. Designers of the chips used in many of the inexpensive Chinese-made tablets popular in emerging markets have in recent months slashed prices by around 50 per cent, according to analysts. Read more of this post

Why isn’t LinkedIn Blocked in China? If LinkedIn remains unblocked, it should do very well in China

Why isn’t LinkedIn Blocked in China?

July 11, 2013

by Willis Wee

Among major social media sites, China blocks Twitter and Facebook (among others); heck, it even blocks Slideshare! But not LinkedIn. I might be jumping to conclusions too soon (I mean, things get blocked in China pretty rapidly) but it seems safe to assume that China knows LinkedIn has much to offer to the middle kingdom. Enough, apparently, to keep it from getting blocked. Read more of this post

In The Philippines, SMS Textbooks Are The Future Of Education

In The Philippines, SMS Textbooks Are The Future Of Education

July 10, 2013

by Phoebe Magdirila

SIM-card-and-SMS-Textbooks-in-the-Philippines-720x391

Smartphone adoption in Asia is increasing, but feature phones still dominate some areas. For example, 89 percent of the Metro Manila population are still using feature phones. Advertising agency DM9JaymeSyfu (DM9) saw that feature phones can help the education sector in the country, so it spearheaded the idea of condensing textbooks into SIM cards and executed it with the help of telco Smart Communications. The result is a campaign called Smart Txtbks. Read more of this post

Google Chromebook Under $300 Defies PC Market With Growth

Google Chromebook Under $300 Defies PC Market With Growth

Google Inc. (GOOG)’s Chromebook was dismissed as a bare-bones laptop with limited appeal when it debuted two years ago. Now it’s defying skeptics and gaining share as the rest of the personal-computer market shrinks.

Chromebooks have in just the past eight months snagged 20 percent to 25 percent of the U.S. market for laptops that cost less than $300, according to NPD Group Inc. The devices, which have a full keyboard and get regular software updates from Google, are the fastest-growing part of the PC industry based on price, NPD said. Read more of this post

Rolls-Royce Revives Age of Sail to Beat Fuel-Cost Surge

Rolls-Royce Revives Age of Sail to Beat Fuel-Cost Surge: Freight

Rolls-Royce Holdings Plc (RR/), best known for powering planes from Concorde to the Airbus superjumbo, is working on a modern-day clipper ship as it bets on emissions curbs to jack up bunker-fuel costs and herald a new age of sail.

Cargo vessels are set for a design change embracing sleeker hulls and hybrid propulsion systems, according to London-based Rolls, which is helping to develop a ship featuring a 180-foot sail augmented by bio-methane engines and carrying 4,500 tons. Read more of this post

Emerging Markets Are Stuck on Fed’s Elevator Ride

Emerging Markets Are Stuck on Fed’s Elevator Ride

Back in the 1960s, a French finance minister called the U.S.’s ability to borrow in its own currency — thanks to the dollar’s pre-eminence and reserve-currency status — an “exorbitant privilege.” It’s an advantage that the rest of the world has to pay for, one way or another. This has lately given many emerging-market governments cause for complaint. If they had the will, one or two of them could do something about it. Maybe it’s time they did.

The issue has been highlighted in recent weeks as the Federal Reserve (FDTR) unsettled global markets by signaling its intent to start tightening monetary policy — at least, that’s what investors thought it said. There was a sell-off in global fixed-income markets, and many emerging economies saw the value of their bonds, equities and currencies drop. Read more of this post

Can 3D printing change face of Singapore’s public housing?

Can 3D printing change face of Singapore’s public housing?

As with the term “robot”, which was coined by Czech writer Karel Capek long before its first technical implementation, 3D printing entered our collective imagery by the backdoor of fiction. In the late 1960s, cult television series Star Trek presented us with two chimerical devices: The transporter and the replicator, both of which involved dematerialising matter and reconstituting it in another form elsewhere.

4 HOURS 47 MIN AGO

As with the term “robot”, which was coined by Czech writer Karel Capek long before its first technical implementation, 3D printing entered our collective imagery by the backdoor of fiction. In the late 1960s, cult television series Star Trek presented us with two chimerical devices: The transporter and the replicator, both of which involved dematerialising matter and reconstituting it in another form elsewhere. Read more of this post

Insight Private Equity on the black box of restructuring tools private equity investors use to improve the operational performance of their portfolio companies

Insight Private Equity

Andrej Gill Goethe University Frankfurt – Faculty of Economics and Business Administration

Nikolai Visnjic Goethe University Frankfurt

June 18, 2013
SAFE Working Paper No. 23

Abstract: 
We are able to shed light on the black box of restructuring tools private equity investors use to improve the operational performance of their portfolio companies. By building on previous work considering performance evaluation of PE backed companies, we analyze whether private equity improves operating efficiency and which of the typical restructuring tools are the main performance drivers. Using a set of over 300 international leveraged buyout transactions of the last thirty years, we find that while there is vast improvement in operational efficiency, these gains vary considerably. Our top performing transactions are subject to strong equity incentives, frequent asset restructuring and tight control by the investor. Furthermore, investors’ experience has a positive influence while financial leverage has no influence on operational performance.

Unethical Culture, Suspect CEOS, and Corporate Misbehavior

Unethical Culture, Suspect CEOS, and Corporate Misbehavior

Lee Biggerstaff  University of Tennessee, Knoxville – Department of Finance

David C. Cicero University of Alabama – Culverhouse College of Commerce & Business Administration

Andy Puckett University of Tennessee, Knoxville

June 2013

Abstract: 
We show that firms with CEOs who personally benefited from options backdating were more likely to engage in other forms of corporate misbehavior, suggestive of an unethical corporate culture. These firms were more likely to overstate firm profitability and to engage in less profitable acquisition strategies. The increased level of corporate misbehavior is concentrated in firms with suspect CEOs who were outside hires, consistent with adverse selection in the market for chief executives. Difference-in-differences tests confirm that the propensity to engage in these activities is significantly increased following the arrival of an outside-hire ‘suspect’ CEO, suggesting that causation flows from the top executives to the firm. Finally, while these suspect CEOs appear to have avoided market discipline when the market was optimistic, they were more likely to lose their jobs, and their firms were more likely to experience dramatic declines in value during the ensuing market correction.

Z-Score Models’ Application to Italian Companies Subject to Extraordinary Administration

Z-Score Models’ Application to Italian Companies Subject to Extraordinary Administration

Edward I. Altman New York University (NYU) – Salomon Center; New York University (NYU) – Department of Finance

Alberto Falini University of Brescia – Department of Economics

Alessandro Danovi University of Bergamo (Italy)

May 1, 2013
Bancaria No. 04-2013

Abstract: 
It is normal for companies, during their life cycle, to alternate between positive and negative phases, periods of success and failure. When a negative period shifts from temporary to structural and chronic (and thus continues over time), the company is often destined to go bankrupt. The uncertainty regarding the exact moment when this takes place has brought about a plethora of quantitative and qualitative models aimed at predicting bankruptcy. This study applies the most well-known of these models, the Z-Score, through an application to Italian companies subject to extraordinary administration between 2000 and 2010. The results confirm a good predictive effectiveness, though Italian peculiarities could require the development of ad hoc parameters.

Is the CEO’s In-House Experience Informative About Audit Risk?

Is the CEO’s In-House Experience Informative About Audit Risk?

Paul Brockman Lehigh University

Gopal V. Krishnan American University; American University – Kogod School of Business

HyeSeung Lee Lehigh University – Department of Accounting

Jesus M. Salas Lehigh University

June 19, 2013

Abstract: 
Very little is known about whether personal characteristics of senior managers convey information about audit risk. We focus on one characteristic of the CEO, the number of years the CEO has worked in the firm before becoming the CEO (CEO in-house experience). We posit that the CEO’s in-house experience mitigates audit risk due to less uncertainty and more familiarity with the auditor. Using audit fees to proxy for audit risk, we find that audit fees are decreasing in CEO’s in-house experience. On average, audit fees are lower by 10% when CEO in-house experience changes from 2 to 6 years. Further, the relation between audit fees and the CEO’s in-house experience is conditional on the overall quality of corporate governance. While the CEO’s in-house experience is insignificant in firms with good governance, it is strongly significant in firms with weak governance.

When Blockholders Leave Feet First: Do Ownership and Control Affect Firm Value?

When Blockholders Leave Feet First: Do Ownership and Control Affect Firm Value?

Bang Dang Nguyen University of Cambridge – Judge Business School

Kasper Meisner Nielsen Hong Kong University of Science & Technology – Department of Finance

June 26, 2013

Abstract: 
This study investigates the effect of ownership and control on firm value using exogenous variation resulting from stock price reactions to the sudden death of individual blockholders. Stock market reactions range from -5% to 4% for inside blockholders as ownership increases and from 0% to -2% for outside blockholders. The difference in market reactions identifies the value of ownership and control while effectively controlling for confounding effects on firm value due to liquidity or anticipated takeover activity. Overall, our results suggest that as ownership increases the beneficial effect of inside blockholders disappears while the beneficial effect of outside blockholders increases.

Departing and Incoming Auditor Incentives, and Auditor-Client Misalignment under Mandatory Auditor Rotation: Evidence from Korea

Departing and Incoming Auditor Incentives, and Auditor-Client Misalignment under Mandatory Auditor Rotation: Evidence from Korea

Gil S. Bae Korea University – Department of Accounting

Sanjay Kallapur Indian School of Business

Joon Hwa Rho Chungnam National University – College of Business

June 18, 2013

Abstract: 
In this paper we provide evidence on specific factors that could affect audit quality under mandatory rotation, using data from Korea where mandatory auditor rotation was put into effect in 2006. We find no evidence supporting the “Brillo pad effect” (the argument that departing auditors have incentives to clean up the balance sheet) or the “new broom effect” (the argument that new auditors can find problems that long-standing auditors tend to overlook). On the contrary, departing auditors spend fewer hours just before rotation, consistent with a lack of incentives to maintain quality given the impending rotation. Compared to clients in other mandatory rotations, the clients rotating away from industry specialist auditors have higher audit hours and higher absolute discretionary accruals post-rotation, suggesting there are adverse effects from breaking such auditor-client pairings. Finally we find that Big 4 auditors’ market share continues to increase after mandatory rotation is imposed. Our findings therefore fail to support mandatory rotation.

Supply- and Demand-side Moat Economics in Europe and Asia. Bamboo Innovator is featured in BeyondProxy.com, where value investing lives

Bamboo Innovator is featured in BeyondProxy.com, where value investing lives:

  • Supply- and Demand-side Moat Economics in Europe and Asia, July 10, 2013 (BeyondProxy)

Moat Economics

Worthless, Impossible and Stupid: How Contrarian Entrepreneurs Create and Capture Extraordinary Value

Worthless, Impossible and Stupid: How Contrarian Entrepreneurs Create and Capture Extraordinary Value

by Daniel Isenberg  (Author)

Isenberg

Introducing the global mind-set changing the way we do business.
In this fascinating book, global entrepreneurship expert Daniel Isenberg presents a completely novel way to approach business building—with the insights and lessons learned from a worldwide cast of entrepreneurial characters. Not bound by a western, Silicon Valley stereotype, this group of courageous and energeticdoers has created a global and diverse mix of companies destined to become tomorrow’s leading organizations. Worthless, Impossible, and Stupid is about how enterprising individuals from around the world see hidden value in situations where others do not, use that perception to develop products and services that people initially don’t think they want, and ultimately go on to realize extraordinary value for themselves, their customers, and society as a whole. What these business builders have in common is a contrarian mind-set that allows them to create opportunities and succeed where others see nothing. Amazingly, this process repeats itself in one form or another countless times a day all over the world. From Albuquerque to Islamabad, you will travel with Isenberg to discover unusual yet practical insights that you can use in your own business. Meet the founders of Grameenphone in Bangladesh, PACIV in Puerto Rico, Sea to Table in New York, Actavis in Iceland, Studio Moderna in Slovenia, Hartwell Metals in Hong Kong and Southeast Asia, Given Imaging in Israel, WildChina in China, and many others. You’ll be moved by the stories of these plucky start-ups—many of them fueled by adversity and, more often than not, by necessity. Great stories, stunning successes, crushing failures—they’re all here. What can we, in the East and West, learn from them? What can you learn—and what will these entrepreneurial stories, so compellingly told, inspire you to do? Let this book open doors for you where you once saw only walls. If you’ve ever felt the urge to turn a glimmer of an idea into something extraordinary, these stories are for you. Read more of this post

The Inner Game Of Everything: Why Is A Four-Decade-Old Tennis Book Still A Self-Help Sensation?

The Inner Game Of Everything: Why Is A Four-Decade-Old Tennis Book Still A Self-Help Sensation?

A Harvard English major wrote The Inner Game of Tennis in 1972. A million copies later, its ideas are still some of the most influential in sports — and beyond, taken seriously by actors, politicians, and even sex researchers. What’s its secret? Maybe that there is no secret.posted on July 5, 2013 at 2:36pm EDT

Reeves WiedemanBuzzFeed Contributor

The fall of 2006 was not a good one for Lawrence Jackson. Earlier that year, he had ended his sophomore season as a defensive end at the University of Southern California with 16 career sacks and his name high on a number of NFL draft boards. “People were asking me if I was gonna leave after that year,” Jackson recalled recently. “I decided to go back, and part of that was to improve my numbers.” But eight games into his junior year, Jackson’s sack total remained stuck at 16. Against Oregon State, in October, the Trojans gave up 33 points, and USC was knocked from the national title race. Jackson hadn’t managed a solo tackle, much less a sack. Fans changed his nickname from “LoJack” to “NoSack.” The following week, immediately after another sack-less game against Stanford, he learned that a close relative had been killed in a car accident. “It was just a lot of pressure, and a lot anger and frustration,” he said. “Nothing was going right.” Read more of this post

The Inner Game of Tennis: The Classic Guide to the Mental Side of Peak Performance

The Inner Game of Tennis: The Classic Guide to the Mental Side of Peak Performance

by W. Timothy Gallwey  (Author) , Zach Kleiman (Preface) , Pete Carroll (Foreword)

images (19)

Amazon.com Review

A phenomenon when first published in 1972, the Inner Game was a real revelation. Instead of serving up technique, it concentrated on the fact that, as Gallwey wrote, “Every game is composed of two parts, an outer game and an inner game.” The former is played against opponents, and is filled with lots of contradictory advice; the latter is played not against, but within the mind of the player, and its principal obstacles are self-doubt and anxiety. Gallwey’s revolutionary thinking, built on a foundation of Zen thinking and humanistic psychology, was really a primer on how to get out of your own way to let your best game emerge. It was sports psychology before the two words were pressed against each other and codified into an accepted discipline. The new edition of this remarkable work–Billie Jean King called the original her tennis bible–refines Gallwey’s theories on concentration, gamesmanship, breaking bad habits, learning to trust yourself on the court, and awareness. “No matter what a person’s complaint when he has a lesson with me, I have found the most beneficial first step,” he stressed, “is to encourage him to see and feel what he is doing–that is, to increase his awareness of what actually is.” There are aspects of psychobabble and mysticism to be found here, sure, but Gallwey instructs as much by anecdote as anything else, and time has ultimately proved him a guru. What seemed radical in the early ’70s is now accepted ammunition for the canon; the right mental approach is every bit as important as a good backhand. The Inner Game of Tennis still does much to keep that idea in play. –Jeff Silverman

From the Inside Flap

The Inner Game of Tennis is a revolutionary program for overcoming the self-doubt, nervousness, and lapses of concentration that can keep a player from winning. Now available in a revised paperback edition, this classic bestseller can change the way the game of tennis is played.

The Innovation Mindset in Action: Jerry Buss (1933-2013), the longtime LA Lakers owner who rose from an impoverished Depression-era childhood to the Basketball Hall of Fame and ultimately transformed the sport of basketball

The Innovation Mindset in Action: Jerry Buss

by Vijay Govindarajan and Srikanth Srinivas  |  11:00 AM July 9, 2013

Innovators think and do things differently in order to achieve extraordinary success. They are found not just in the world of business, although they do have strong leadership qualities and excellent business sense as a common core. Our research indicates that whether they are CEOs, senior executives, sports team owners, or film directors, game changers who stand head and shoulders above the rest share a common set of qualities that we call the innovation mindset. In a series of blog posts, we’ll introduce a few game changers and explore the common qualities that make them such effective innovators: they see and act on opportunities, use “and” thinking andresourcefulness, focus on outcomes, and act to “expand the pie.” Regardless of where they start, innovators persist till they successfully change the game. Take, for example, Jerry Buss (1933-2013), the longtime LA Lakers owner who rose from an impoverished Depression-era childhood to the Basketball Hall of Fame and ultimately transformed the sport of basketball. Innovators connect the dots differently and see opportunities that others don’t. They seize opportunities that others don’t dare to. Read more of this post

Why Fights Erupt in Family Businesses

Why Fights Erupt in Family Businesses

by Josh Baron and Rob Lachenauer  |  12:00 PM July 9, 2013

Two brothers sharing ownership in a fourth-generation concrete business had a bitter falling out over an unlikely issue: a sailboat. The older sibling accused the younger of dipping into the till to support his racing habit. The younger brother struck back by issuing an ultimatum: buy out my share of the company, or sell me yours. An ugly fight ensued, affecting the business, the family, the employees, and the customers.

The rift between these two men — the father and uncle of a colleague of ours — never healed. Both men went to their graves without speaking another word to one another; their children grew up as strangers instead of cousins. Read more of this post

Why So Many Leadership Programs Ultimately Fail

Why So Many Leadership Programs Ultimately Fail

by Peter Bregman  |  10:00 AM July 10, 2013

The topic in the Executive Committee meeting turned to Europe. The technology company, Alentix*, was doing well and growing annually at the rate of about 15%. But its European division was struggling. It had been five years since the region turned a profit.

Yet no one had addressed that issue. Jean, the head of the Europe office, had been with the company longer than anyone else around the table — he had strong ties with the board — and the topic seemed untouchable. Read more of this post

Wide Moat Investing Summit 2013 (July 9-10): Bamboo Innovator presents “Wouldn’t it be nice if we can invest BEFORE the economic moat is obvious?”

REITs Deepening Bond Losses as Leverage Forces Sales

REITs Deepening Bond Losses as Leverage Forces Sales

Annaly Capital Management Inc. (NLY)’s Wellington Denahan, head of the largest mortgage real-estate investment trust, told investors less than three months ago that reports REITs could threaten U.S. financial stability were as misleading as the media frenzy over shark attacks in 2001.

Since the May 2 comments, shares of the companies, which use borrowed money to make $400 billion in credit market bets, have dropped about 19 percent and the value of their assets has plunged after the Federal Reserve triggered a flight from bond funds by signaling plans to slow its debt-buying program.

REITs may have needed to sell about $30 billion of government-backed mortgage securities in just one week last month to maintain the amount of borrowing relative to their net worth, according to JPMorgan Chase & Co. Those types of sales deepened losses in the mortgage-bond market, which had the worst quarter since 1994, accelerated the exit from fixed-income funds and fueled a jump in home-loan rates to a two-year high. Read more of this post

World Cup Billionaire Mata Pires Stirs Brazil Protests Over Stadiums

World Cup Billionaire Stirs Brazil Protests Over Stadiums

Cesar Mata Pires represents everything protesters in Brazil detest.

When demonstrators across the country swarmed new World Cup soccer stadiums last month amid a haze of tear gas and rubber bullets, one placard punctuated their anger over the government’s decision to finance the arenas at the expense of taxpayers, which enriched a handful of well-connected tycoons while neglecting public services.

The sign, which said “The $ for Education Went to OAS,” took aim at the construction company owned by Mata Pires, which has emerged as one of the biggest winners in the building boom leading up to the World Cup and the 2016 Olympics. It also has made its 63-year-old chief executive a billionaire. Read more of this post

Worst Dim Sum Baosteel Shows Smokestack Troubles

Worst Dim Sum Baosteel Shows Smokestack Troubles

Baosteel Group Corp. was the worst-performing high-grade corporate Dim Sum bond in the past month as Premier Li Keqiang sacrifices economic growth during a shakeup of smokestack industries.

The yield on March 2017 debt of Baosteel, China’s third-largest steelmaker, rose 102 basis points and touched a record 4.87 percent on July 5, data compiled by Bloomberg show. That was the most among non-financial issuers on HSBC Holdings Plc’s investment-grade Dim Sum index, as average yields on the yuan debt sold offshore climbed 79 basis points to 4.01 percent. U.S. industrial companies pay 2.43 percent for three- to five-year debt, according to Bank of America Merrill Lynch indexes. Read more of this post