Terry Gou touts Hon Hai’s evolution as it has adopted an innovative business model that ranges from supplying key components to serving the end user

Terry Gou touts Hon Hai’s evolution at APEC summit

CNA 2013-10-08

Terry Gou at the APEC summit. (Photo/CNA)

Hon Hai Precision Industry, the world’s largest contract electronics manufacturer, has adopted an innovative business model that ranges from supplying key components to serving the end user, said Hon Hai chairman Terry Gou on Monday. He called the model “IIDM,” or Integration Innovation Design Manufacture, singling out integrated innovation as the capability that a company needs to stand out in the current age of technological revolution. Read more of this post

Young Chinese shunning factory jobs, says Foxconn founder; “The young generation don’t want to work in factories, they want to work in services or the internet or another more easy and relaxed job”

Last updated: October 7, 2013 11:13 pm

Young Chinese shunning factory jobs, says Foxconn founder

By Ben Bland in Nusa Dua, Bali and Sarah Mishkin in Taipei

Young people across China are increasingly shunning monotonous, low-paid assembly line jobs, leaving Foxconn, the maker of iPhones and iPads, struggling to attract enough workers, according to the electronics manufacturer’s chairman. Terry Gou, founder of the company which is China’s largest private employer, says he is upgrading Foxconn’s training programs and automating more of its assembly lines in the face of a labour shortage. “The young generation don’t want to work in factories, they want to work in services or the internet or another more easy and relaxed job,” he said on the sidelines of a meeting of Asian business and political leaders in Bali, Indonesia. Read more of this post

Huayi Bros’ Wang Zhongjun living his own fairytale

Huayi Bros’ Wang Zhongjun living his own fairytale

Staff Reporter

2013-10-08

Wang Zhongjun, founder of Huayi Brothers Media. (Photo/CNS)

In China’s entertainment and capital industry circles, few can compare with Wang Zhongjun, chairman of Shenzhen-listed film company Huayi Brothers Media, a media industry source once said. Wang, born in Beijing in 1960, has served in the military, studied overseas and worked as a magazine publisher and photographer; he founded Huayi Brothers Media with his younger brother Wang Zhonglei in 1994, marking the start of his journey to develop a media empire. Some of his fans like his extravagant lifestyle but others have criticized as a wily and arrogant businessman. He reportedly owns seven large mansions and two European-style villas in suburban Beijing, in addition to numerous limousines. Read more of this post

China’s National Day travel madness exposes paid leave taboo

China’s National Day travel madness exposes paid leave taboo

Staff Reporter

2013-10-08

While it seems a given that governments should should create practical and adequate conditions that allow employees to enjoy their vacation days, China faces unique cultural pressures that leave many in the office year-round. An important step to take would be staggering employee vacations, according to a report in Chinese-language news portal QQ.com. People who work in Western countries usually use their paid leave to take vacations, as they do not get several consecutive days off for national holidays. In China, however, people are used to taking vacations and making trips during national holidays such as the Golden Week National Day and the Spring festival Lunar New Year holiday since they are given several consecutive days off at the time, said the report. Read more of this post

Beijing’s anti-monopoly law finally begins to bite

Beijing’s anti-monopoly law finally begins to bite

Staff Reporter

2013-10-08

China’s anti-monopoly law has been in place for five years, but its full impact has not been felt until recently, according to Guangzhou’s Southern Weekly. The government increased the number of fines issued to companies violating the law this year, breaking new records with the total fines rising from 144 million yuan (US$23.4 million) in January to 247 million yuan (US$40.2 million) in February. As of August, the rise stood at 670 million yuan (US$108.9 million), the paper said. Read more of this post

The Pratt family appears set for a $500 million lift following reports that family member Raphael Geminder is considering a $2 billion float of his fully-owned packaging business, Pact Group

Andrew Heathcote Rich Lists editor

Proposed Pact Group float to give $500 million boost to Pratt family’s wealth

Published 07 October 2013 11:20, Updated 08 October 2013 07:12

The wider Pratt family’s Rich 200 valuation could be set for a boost if Pact’s IPO goes ahead.

The Pratt family appears set for a $500 million lift following reports that family member Raphael Geminder is considering a $2 billion float of his fully-owned packaging business, Pact Group. The Australian Financial Review has reported that Geminder has appointed Credit Suisse and Macquarie Capital to explore options for a float. The suggested $2 billion valuation is $500 million more than the value placed on it by BRW in its determination of this year’s Rich 200 rankings. Anthony Pratt & family ranked fourth on the Rich 200 with $5.95 billion, just $50 million behind third ranked James Packer. Read more of this post

Canada’s Saputo to take over Australian dairy producer Warrnambool for A$392.7m

Canada’s Saputo to take over Australian dairy producer Warrnambool

Mon, Oct 7 2013

SYDNEY (Reuters) – Saputo Inc (SAP.TO: Quote, Profile, Research, Stock Buzz), Canada’s largest dairy producer, will acquire Warrnambool Cheese and Butter Factory Company Holdings Ltd (WCB.AX: Quote,Profile, Research, Stock Buzz) in a deal valuing Australia’s oldest dairy processor at A$392.7 million ($370.10 million). Saputo, which operates in Canada, the United States and Argentina, has been looking at Australia as a platform to expand its global presence and tap growing demand in Asia’s emerging markets. Warrnambool, whose brands include the Sungold Milk range of fresh milk, supplies dairy products to both domestic and international customers. Read more of this post

Commodity hedge funds face bleak future

October 6, 2013 4:22 am

Commodity hedge funds face bleak future

By Madison Marriage

The commodity hedge fund industry is likely to come under greater pressure as weak performance and waning client interest forces major funds to close. The latest victim of this trend is Clive Capital, once one of the world’s largest commodity hedge funds, which last month announced it would wind down and return $1bn to investors. This follows the closure of a number of well-known commodity funds over the past two years, including Arbalet, Bluegold, Centaurus and Fortress. Read more of this post

The Netherworld of What Constitutes Insider Trading

OCTOBER 7, 2013, 11:01 AM

The Netherworld of What Constitutes Insider Trading

By PETER J. HENNING

Identifying insider trading sometimes seems like a game of three-card monte: first you see it, then you don’t. A recent settlement by Citigroup with a Massachusetts regulator over leaking internal research to clients raises question about when such disclosure crosses the line into insider trading. Citigroup agreed to a consent order entered by the Massachusetts Securities Division requiring it to pay a $30 million penalty after it failed to have proper procedures in place to protect against the early release of research by the firm’s analysts. Read more of this post

US default fears spark liquidity warning; America cannot live so carelessly forever; Playing Russian roulette is never advisable. Congress may find a bullet in the chamber this time

October 7, 2013 7:37 pm

US default fears spark liquidity warning

By Gina Chon and Stephanie Kirchgaessner in Washington and Michael MacKenzie in New York

Financial firms trading in US Treasury securities are preparing contingency plans in the event of a debt default, as experts warn that such a scenario could result in a catastrophic liquidity drain. “This would be an unprecedented event and the consequences for the market are dangerously unpredictable,” says Rob Toomey, associate general counsel at Sifma, a lobby group representing hundreds of securities firms, banks and asset managers that has drawn up plans for a coordinated strategy. “I think all the work in the world will not save us from uncertainty.” Read more of this post

No Way U.S. Would Allow Debt Default? Don’t Bet on It

OCTOBER 7, 2013, 9:01 PM

No Way U.S. Would Allow Debt Default? Don’t Bet on It

By ANDREW ROSS SORKIN

“The United States government is not going to default, ever.” That’s what Vincent Reinhart, former head of the Federal Reserve’s monetary division and now managing director and chief United States economist for Morgan Stanley, said late last week. “As political theater,” he said, “the debt ceiling is not a useful threat, because politicians are basically threatening to shoot themselves, as they will rightly shoulder the blame for the serious global economic consequences of a default.” Read more of this post

DE Shaw shuts doors to new investors; Traditional hedge fund strategies not as profitable as before

Last updated: October 7, 2013 5:42 pm

Hedge fund DE Shaw shuts doors to new investors

By Sam Jones, Hedge Fund Correspondent

One of the most profitable hedge funds has closed its doors to new clients, calling time on the industry’s ability to square vast inflows of money with the promise of market-beating returns. DE Shaw’s move means that of the largest six hedge funds, only two, the UK’s Man Group and the US firm Och-Ziff, are still accepting cash into their flagship funds. Many traditional hedge fund strategies have become far less profitable due to quantitative easing, bank deleveraging and a tail-off in corporate dealmaking. Read more of this post

Journalist Who Proposed US-Canada Merger Explains Why Her Plan Isn’t Crazy

Journalist Who Proposed US-Canada Merger Explains Why Her Plan Isn’t Crazy

ADAM TAYLOR OCT. 7, 2013, 5:40 PM 5,820 37

Since the publication of her book calling for a merger between the U.S. and Canada, Diane Francis has been showered on Twitter and elsewhere with some not-too-kind reactions. One person called it a “loony idea,” while another wrote that they had to check the calender to see if it was April Fool’s Day. “You, Madam, are a traitor!” another man wrote, before more succinctly explaining his position in a one word follow up tweet: “TREASON!” But her book, “Merger of the Century: Why Canada and America Should Become One Country,” is meant to generate serious debate. Read more of this post

Here’s The Real S&P 500 Chart That No One Ever Talks About

Here’s The Real S&P 500 Chart That No One Ever Talks About

J.C. PARETS, ALL STAR CHARTS OCT. 7, 2013, 1:42 PM 3,386 5

As market participants we look at charts every day for a variety of reasons. But whether we’re doing so for idea generation, risk management or entry/exit points, we’re charting to go out there and try to make money. Other times, however, looking at longer-term charts just helps to put things in perspective. With the day-to-day noise out there coming from the government, media and investing public, sometimes it’s important to bring in a longer-term view to supplement our short-term outlook. Here is a chart of the S&P500 adjusted for inflation using the Consumer Price Index, which is released monthly by the Bureau of Labor Statistics. What still stands out to me is the consistency of the lower lows and lower highs since the year 2000. Hardly the uptrend and bull market that we hear about so often. You rarely see a chart like this because the “all-time high” headlines are so much sexier. No one likes to add the,“But in real terms we’re still far from it”. Who wants to buy a newspaper that says that? I know I wouldn’t. But fortunately I’m not in that business and I can share with you guys any chart I want. And I think it’s important that when I speak with investors, they understand how in Real terms, not only is the S&P500 not at all-time highs, but actually down 20% over the last 13.5 years. It’s all about purchasing power isn’t it? Or in this case, the lack there of?

Asia’s Crisis of Leadership

Asia’s Crisis of Leadership

The day Asian leaders have long dreaded is here: The era of rapid growth is over.

It has taken five years, but the fallout from what Asians call the “Lehman shock” is finally hitting gross domestic product and living standards. These risks are the talk of Bali, where Asia-Pacific Economic Cooperation nations are mulling what to do about a world where “risks remain tilted to the downside.” There, Michael Taylor, chief credit officer for Asia at Moody’s Investors Service, said chaotic markets and a slow recovery in advanced nations is driving a “change in the economic cycle” that makes sustaining growth in the region “more challenging.” Read more of this post

Philippine billionaire Henry Sy plans to spend 54.5 billion pesos ($1.26 billion) to reclaim land in Manila Bay as large plots for development become scarce in the capital. “You can never escape Manila. You have to go where the consumers are.”

Billionaire Sy Sees Manila Reclaimed Land Growth: Southeast Asia

Philippine billionaire Henry Sy plans to spend 54.5 billion pesos ($1.26 billion) to reclaim land in Manila Bay as large plots for development become scarce in the capital. SM Land Inc., which Sy is shaping to become the nation’s largest builder, has offered to reclaim 300 hectares (741 acres) from the sea, parent SM Investments Corp. (SM) said. SM Investments is Sy’s publicly listed holding company that owns banks, malls and grocery stores. “You can never escape Manila,” SM Investments Vice Chairwoman Teresita Sy-Coson said in an Oct. 2 interview. “You have to go where the consumers are.” Read more of this post

Fifth & Pacific to sell its once-popular Juicy Couture business to Authentic Brands Group for $195 million to focus on its fast-growing, higher-end Kate Spade brand

Fifth & Pacific sells Juicy Couture brand for $195 million

10:12am EDT

By Phil Wahba

(Reuters) – Fifth & Pacific Cos Inc (FNP.N: Quote, Profile, Research, Stock Buzz) on Monday said it has agreed to sell its once-popular Juicy Couture business to Authentic Brands Group for $195 million to focus on its fast-growing, higher-end Kate Spade brand. Juicy, known for its velour track suits and urban feel, saw sales plummet in recent years as the brand fell out of favor. Attempts to turn around what was still Fifth & Pacific’s top selling brand last year failed. Read more of this post

Same old shameful story: Every year, we recoil in shock when we read the Auditor-General’s Report and yet we hear little about punishment being meted out to those responsible for the colossal loss of billions of ringgit

Updated: Sunday October 6, 2013 MYT 7:42:33 AM

Same old shameful story

BY WONG CHUN WAI

Every year, we recoil in shock when we read the Auditor-General’s Report and yet we hear little about punishment being meted out to those responsible for the colossal loss of billions of ringgit.

IT’S simply disgusting and shameful. Whether the colossal loss of billions of ringgit is due to negligence, slipshod decisions, incompetence, stupidity, criminal breach of trust or, worse, plain corruption, Malaysians are finding it too painful to bear. Every year, we read of such horrible accounts and yet we hear little about punishment being meted out to those responsible. Who can blame taxpayers if they have the perception that the Auditor-General’s reports are tabled in Parliament yearly only because it is mandated by law? Aside from the fiery debates, for a little while at least, there is really not much that can be done. Read more of this post

Foreign property buyers in Johor to pay 4%-5% processing fee

Foreign property buyers in Johor to pay 4%-5% processing fee

POSTED: 08 Oct 2013 07:44
The Johor state government will levy a processing fee on foreigners who buy properties in the Malaysian state from next year. PASIR GUDANG: The Johor state government will levy a processing fee on foreigners who buy properties in the Malaysian state from next year. Bernama news agency quoted State Executive Councillor for Housing and Local Government Abdul Latiff Bandi as saying that the fee will be based on the property value. Currently, foreign buyers pay only RM10,000 as processing fee. Mr Abdul Latiff said the new processing fee of between four and five per cent of the property value enables the state government to control the sale of properties to foreigners. “For instance, foreigners buying a property worth RM5 million, they have to pay only RM10,000 as processing fee currently. From next year, they have to pay based on the property value,” he told a media conference after opening a seminar on Green Industry 2013 on Monday. Mr Abdul Latiff said proceeds from the processing fee will be used for projects and programmes towards the people’s development.