Black Market Radios Even Too Pricey for Portuguese Bemoaning Tax

Black Market Radios Even Too Pricey for Portuguese Bemoaning Tax

Portuguese construction worker Carlos Marques lost his job in 2010 and a year later his unemployment money ran out. So he began peddling everything from old car radios to shoes to scratch a living. “When I first started, business was booming,” Marques, 46, said as he hawked pans, radios and speakers at the Feira da Ladra, or “Thieves Market,” once a medley of sights and smells from Portugal’s colonial history and now the hub of Lisbon’s underground economy. “Now I’m struggling as most of my clients have lost their jobs or spent most of their income on taxes.” Read more of this post

Paris Luxury Property Lures Overseas Rich as French Flee Taxes

Paris Luxury Property Lures Overseas Rich as French Flee Taxes

When a 44 million-euro ($59 million) Parisian townhouse near the Champs-Elysees was snapped up just six weeks after it was put on the block, Charles-Marie Jottras knew the city’s luxury property market was turning around. The chairman of broker Daniel Feau, an affiliate of Christie’s International Real Estate, says the firm found a Qatari buyer for the 19th-century mansion that features a dozen bedrooms on three floors, a terrace with a panoramic view of Paris, a swimming pool and a 1,000 square meter garden. Read more of this post

Record Thai Rice Hoard Expanding Global Supply Glut: Commodities

Record Thai Rice Hoard Expanding Global Supply Glut: Commodities

Rice stockpiles in Thailand, once the world’s biggest exporter, are expanding to a record as a government program to buy production spurs farmers to plant the most crops ever and add to a global glut. Reserves in Thailand will increase 24 percent to 15.5 million metric tons in 2013-2014 as global output rises 1.7 percent to an all-time high of 476.8 million tons, the U.S. Department of Agriculture estimates. The price of 5-percent broken Thai white rice, an Asian benchmark, will drop 12 percent to $390 a ton by April, a five-year low, according to the median of eight trader and analyst estimates compiled by Bloomberg. Read more of this post

Central Banks Gaming Out U.S. Default as Deadline Nears

Central Banks Gaming Out U.S. Default as Deadline Nears

Central banks have begun making contingency plans on how they would keep financial markets working if the U.S. defaults on the world’s benchmark debt. Policy makers discussed possible responses when they met at the International Monetary Fund’s annual meetings in Washington over the weekend, said officials who spoke on condition of anonymity because the talks were confidential. The discussions continued as policy makers headed home. Read more of this post

De Beers Squeezes Diamond Buyers Who Flip Gems: Chart of the Day

De Beers Squeezes Diamond Buyers Who Flip Gems: Chart of the Day

De Beers is driving margins on its diamond output higher by squeezing out buyers who sell rough stones instead of polishing them, consulting firm Gemdax says. The CHART OF THE DAY shows how the biggest diamond company has offered buyers a narrower discount to secondary cash-market prices in the two years since Chief Executive Officer Philippe Mellier was appointed, according to data compiled by Gemdax. The difference shrank to an average 1.1 percent from 5.5 percent. De Beers traditionally sells stones at a discount to so-called sightholders, who cut and polish gems before selling them on. Read more of this post

Uneasy Investors Sell Billions in Treasurys; Nervousness Over U.S. Debt Has Investors Unloading U.S. Bonds

Uneasy Investors Sell Billions in Treasurys

Nervousness Over U.S. Debt Has Investors Unloading U.S. Bonds

MIN ZENG

Oct. 14, 2013 8:30 p.m. ET

While leaders in Washington have been chasing a deal to avert a U.S. default, investors and banks have dumped billions of dollars in government debt. In the past two weeks, investors have sold mountains of short-term debt issued by the government. Banks have also reduced their holdings, trimming such debt by more than 50% over that period, according to data from the Federal Reserve Bank of New York. Amid anxiety about near-term finances, yields on U.S. debt that comes due in one month have risen to levels higher than for similar securities that don’t mature for six months. Typically, issuers pay more to borrow for longer periods of time. Read more of this post

Japanese Stocks Lure More Long-Term Investors

Japanese Stocks Lure More Long-Term Investors

Buying by Mutual Funds Suggests Nikkei May Have More Upside

KANA INAGAKI

Updated Oct. 14, 2013 9:46 p.m. ET

TOKYO—At the start of the year, high-profile hedge funds were piling into Japan’s stock market in search of quick, profitable bets. Now, there are growing signs that mutual funds are jumping in for the long haul. Institutional money managers, which tend to trade less actively than hedge funds, started to ramp up purchases of Japanese stocks in midsummer, after a decisive parliamentary election in July bolstered hopes that Prime Minister Shinzo Abe would be able stay in power long enough to carry out difficult structural changes to the economy, many market experts say. Read more of this post

Treasury Bill Supply at Eisenhower-Era Low Seen Bolstering Bonds

Treasury Bill Supply at Eisenhower-Era Low Seen Bolstering Bonds

Lost amid concern that the U.S. is headed toward a default is a fact that bulls say may help underpin American debt prices: supply of the shortest-term securities is shrinking. Treasury bills make up 13.2 percent of the $11.6 trillion in marketable debt outstanding, the smallest share since Dwight Eisenhower was president in the 1950s and down from 34.4 percent in 2008, according to Barclays Plc. The drop reflects efforts by the government to take advantage of record-low interest rates by selling more longer-term debt after the financial crisis, pushing the average maturity of the Treasury’s debt to 5.4 years from 4.1 years in early 2009. Read more of this post

U.S. debt ceiling crisis would start quiet, go downhill fast

U.S. debt ceiling crisis would start quiet, go downhill fast

Mon, Oct 14 2013

By Jason Lange

WASHINGTON (Reuters) – If Washington doesn’t reach a deal soon to keep paying its bills, an economic crisis could start unfolding so quietly on Thursday it will give little hint of its potential to throw millions of Americans out of work. Many people would not notice right away if the government hits a $16.7 trillion cap on its debt, which could come on Thursday. Checks would likely go out on time that day for everyone from bondholders to workers who are owed unemployment benefits, according to analysts in government and the private sector. Read more of this post

Draghi Had to Expect Calls for New Long-Term Refinancing Operation; The crisis shows that no central bank can easily escape from its unconventional monetary policies

Updated October 14, 2013, 7:45 p.m. ET

Draghi Had to Expect Calls for New Long-Term Refinancing Operation

The crisis shows that no central bank can easily escape from its unconventional monetary policies.

SIMON NIXON

Until recently, the European Central Bank could be forgiven for feeling a little smug. All of the major central banks have massively expanded their balance sheets since the start of the crisis. But while the U.S. Federal Reserve continues to accumulate assets to the tune of $85 billion a month—too nervous about the market’s reaction even to scale down its money-printing—the ECB balance sheet has been steadily shrinking. Read more of this post

Nobel Prize U.S. winner warns of ‘bubbly’ global home prices

Nobel Prize U.S. winner warns of ‘bubbly’ global home prices

Mon, Oct 14 2013

By Alister Bull and Johan Ahlander

WASHINGTON/STOCKHOLM (Reuters) – One of three American economists who won the 2013 economics Nobel prize on Monday for research into market prices and asset bubbles expressed alarm at the rapid rise in global housing prices. Robert Shiller, who shared the 8 million Swedish crown ($1.25 million) prize with fellow laureates Eugene Fama and Lars Peter Hansen, said the U.S. Federal Reserve’s economic stimulus and growing market speculation were creating a “bubbly” property boom. Read more of this post

Philippines infrastructure: taking the slow train to nowhere

Philippines infrastructure: taking the slow train to nowhere

Mon, Oct 14 2013

By Rosemarie Francisco

MANILA (Reuters) – Images of a portion of the Philippines’ oldest light rail transit line ablaze in the middle of the night were exactly what private sector bidders for a $1.4 billion rehabilitation of the country’s rail system had feared. The fire last week, caused by a short circuit that ignited power cables lining the tracks, was the second on Manila’s elevated rail system in two months and one of many mishaps in its 29-year life – telltale signs that Southeast Asia’s first light rail transit (LRT) network is in dire need of an upgrade. Read more of this post

Malaysia’s Securities Commission (SC) rules on updated list of syariah-compliant stocks may impact property stocks due to their relatively higher leverage

Updated: Tuesday October 15, 2013 MYT 9:38:40 AM

New SC rules may hit property, benefit O&G

BY INTAN FARHANA ZAINUL

PETALING JAYA: Certain stocks are expected to face more price volatility than others when the Securities Commission (SC) releases on Nov 29 the updated list of syariah-compliant stocks. Analysts believed that property counters, due to their relatively higher leverage, might take a hit from the more stringent financial rules while others such as plantation as well as oil and gas stocks would have less impact and might even benefit from the move. Read more of this post

China-to-India Price Jump Risks Growth as World Outlook Dims

China-to-India Price Jump Threatens Growth as World Outlook Dims

Higher food costs from China to India are raising prices for a third of the world’s people, adding to the challenge of sustaining the global economic recovery as the growth outlook dims. Consumer prices in China rose 3.1 percent last month as food costs advanced the most since May 2012, statistics bureau figures showed today in Beijing, while India’s Commerce Ministry said inflation unexpectedly accelerated to a seven-month high. Both gauges increased more than economists had estimated. Read more of this post

Huawei Innovates With Rotating CEO System

Oct 14, 2013

Huawei Innovates With Rotating CEO System

JURO OSAWA

China’s Huawei Technologies Co. has a unique management structure that has sometimes raised questions about who makes decisions at the company. At Huawei, three senior executives — Guo Ping, Ken Hu and Eric Xu — take turns and rotate through the chief executive position, with each term for the acting CEO role six months long. The Shenzhen-based company, the world’s second-largest supplier of telecommunications network equipment, adopted the rotating CEO system in 2011. Read more of this post