Hard Questions Remain on BlackBerry’s Turnaround

Hard Questions Remain on BlackBerry’s Turnaround

DAN GALLAGHER

June 19, 2014 2:54 p.m. ET

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BlackBerry BB.T +9.33% may no longer be doomed, but what it will look like in a year remains up in the air.

BlackBerry wants to shed its dependence on selling smartphones in favor of software and services mainly for enterprises to manage their fleets of mobile devices. Thursday’s quarterly results offered several encouraging signs for this effort. Adjusting for one-time items, BlackBerry’s loss of 11 cents a share was less than half what analysts expected. And service revenue came in 9% above Wall Street’s estimates. The stock duly jumped on Thursday. Read more of this post

Foreign Investors Flock to Taiwan Tech; Surge of Overseas Cash Sends Stock Index to Highest Level Since 2007

Foreign Investors Flock to Taiwan Tech

Surge of Overseas Cash Sends Stock Index to Highest Level Since 2007

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ARIES POON and FANNY LIU

June 19, 2014 4:34 a.m. ET

TAIPEI—A surge of cash into Taiwan has sent stocks to their highest level since 2007, as enthusiasm grows over the island’s technology companies. Read more of this post

The tightrope China’s biggest business tycoon must walk; Can you be Maoist and ultra-capitalist at the same time? Yes, you can. The embodiment of this ultimate contradiction is Ren Zhengfei, the legendary founder of Huawei

The tightrope China’s biggest business tycoon must walk

Peter Cai

20 June 2014

Can you be Maoist and ultra-capitalist at the same time? Yes, you can. The embodiment of this ultimate contradiction is Ren Zhengfei, the legendary founder of the Chinese telecommunication giant, Huawei.

He is one of China’s most respected and powerful businessmen, an admirer of the Whiz Kids of Ford — who pioneered a data-driven decision-making process — and is a personal friend of American business tycoons such as Hank Greenberg of AIG and John Chambers of Cisco. Read more of this post

China denies trying to ban unapproved critical media coverage

China denies trying to ban unapproved critical media coverage

9:08am EDT

BEIJING (Reuters) – China is not trying to ban reporters from publishing critical reports without prior approval, an official told state media on Thursday, insisting an order had been misinterpreted and its real goal was to stop journalists abusing their jobs.

The State Administration of Press, Publication, Radio, Film and Television issued rules on Wednesday saying reporters could only publish critical stories if their employer had signed off on it, sparking accusations of censorship. Read more of this post

China Property Collapse Seen as $33 Billion in Trusts Due

China Property Collapse Seen as $33 Billion in Trusts Due

By Bloomberg News – Jun 19, 2014

Chinese property trusts face record repayments next year as the real-estate market cools, fueling speculation among bond funds that more developers will collapse.

The trusts, which channel money from wealthy individuals to smaller builders that have trouble obtaining financing elsewhere, must repay 203.5 billion yuan ($32.7 billion) in 2015, according to Use Trust, a Chinese research firm. That’s almost double the 109 billion yuan due this year. New issuance of the products slumped to 40.7 billion yuan this quarter, the least in more than two years, Use Trust data show. Read more of this post

Reforming China’s Monopolies

Reforming China’s Monopolies

Peijun Duan 

Central Party School

Anthony Saich 

Harvard University – Harvard Kennedy School (HKS)
May 7, 2014
HKS Working Paper No. RWP14-023

Abstract: 
This working paper focuses on an aspect of governance that is crucial to the next phase of China’s development: reducing state monopolies in order to enhance economic efficiency and promote more equitable growth. It is important to note that monopoly control in the Chinese political economy is not simply an economic phenomenon but also a phenomenon deeply embedded in a comprehensive system of power. Monopolies in the economic sphere (resources, prices, markets, and assets) are serious, but they are derived from the legacy of the centrally planned economy. They are also rooted in the traditional structure of Chinese society and its culture. In this paper, we will present a comprehensive examination of the phenomenon of monopoly control in the Chinese system.

On Value Traps

06 Jun

On Value Traps

David Merkel

One thing that floors me regarding my readers, is who reads me.  I have many professional readers who read me regularly, and I thank you for doing so.  Tonight’s piece stems from an e-mail from one of my professional readers:

Hi David,

Big compliments for your blog, it’s probably the best on the net and one of the very few I am reading these days. I really like your overall approach to investing and I am using some of your methods myself with success in my ZZZ Fund (ZZZ on Bloomberg) like having an even-weighted portfolio of 30-40 stocks with regular rebalancing or focusing on the strongest players in weak industries (southern European banks anyone?). Read more of this post

Value Traps: Look Past Surface To Identify True Value

Value Traps: Look Past Surface To Identify True Value

by Mark MelinJune 19, 2014, 11:40 am

Morningstar pannel advises to avoid Chinese banks and other companies that look like values but aren’t, rather look for strong management in battered down geographic regions or market sectors exposed to long term growth trends

In finding value in today’s market environment, three professional investors shared a common theme: don’t let where the company is domiciled taint your view. This was the view of a morning keynote speech at theMorningstar investment Conference held today in Chicago- the panelists were Harry Hartford, Causeway Capital Management, David Herro, Oakmark Funds, and Rob Lovelace, The Capital Group. Read more of this post

Just how widespread is insider trading here?

Just how widespread is insider trading here?

Friday, Jun 20, 2014

R. Sivanithy

The Business Times

When a stock rises or falls in unusual fashion prior to a major corporate announcement, there are invariably complaints that the information was somehow leaked.

And the talk is that insiders have benefited, by either buying or selling before the rest of the market. Because this is unfair and undermines confidence, calls are then made for regulators to investigate. Read more of this post

Caterpillar Asia Sales Crater By 30% – Company Reports Weakest Stretch Of Global Demand Since Lehman Collapse

Caterpillar Asia Sales Crater By 30% – Company Reports Weakest Stretch Of Global Demand Since Lehman Collapse

Tyler Durden on 06/19/2014 10:54 -0400

The chart below, showing CAT latest monthly retail sales for the month of May and broken down by region as well as consolidated for the entire world, paints a vastly different picture than that presented by the company’s stock price. Read more of this post

A Peek Inside The Secret World Of Currency Manipulation

A Peek Inside The Secret World Of Currency Manipulation

Tyler Durden on 06/19/2014 17:28 -0400

We already know that Wall Street manipulates everything (not conspiracy theory, but now open conspiracy fact), but Reuters’ Jamie McGeever exposes the ugly chatroom realities of just how FX traders shared orders, split trades, front-ran clients in million of electronic messages providing fresh evidence of collusion among top currency traders. Traders pooled order details and discussed the ‘spread’ they would offer, “I don’t like this guy…I’d show 6 to good guys but guys like that I’m going to show 7 in future,” the trader added. Unrigged?

To summarize just how, who and where this manipulation takes places is the following series of charts from Bloomberg demonstrating Wall Street at its best – breaking the rules and making a killing. Read more of this post

Taiwan’s Quanta to start mass production of Apple’s smartwatch in July: source

Taiwan’s Quanta to start mass production of Apple’s smartwatch in July: source

7:41pm EDT

By Michael Gold

TAIPEI (Reuters) – Taiwan’s Quanta Computer Inc 2382.TW will start mass production of Apple Inc’s AAPL.O first smartwatch in July, a source familiar with the matter said, as the U.S. tech giant tries to prove it can still innovate against rival Samsung Electronics Co Ltd. Read more of this post

Power of Microsoft’s Bing an open question in search industry

Power of Microsoft’s Bing an open question in search industry

3:50pm EDT

By Bill Rigby

SEATTLE (Reuters) – Microsoft Corp’s (MSFT.O: QuoteProfileResearchStock Buzz) new chief executive, Satya Nadella, likes to boast that Bing is growing and powers 30 percent of the Internet search market, making it a worthy competitor to Google Inc (GOOGL.O: QuoteProfileResearchStock Buzz).

But within the advertising and research industries that measure and manage search as a business, Microsoft’s strength is an open question. Read more of this post

Chinese tycoon invites 1000 impoverished Americans to have lunch with him in New York in an attempt to show fellow tycoons that there is more to life than “luxury goods, gambling and prostitution”

Chinese tycoon invites 1000 impoverished Americans to have lunch with him in New York

June 19, 2014

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Tom Phillips

Chinese billionaire philanthropist Chen Guangbiao, whose previous media stunts include bottling clean air and selling it to highlight China’s pollution problems. Photo: Yuan Jianmin

A Chinese billionaire has announced plans to invite 1000 impoverished Americans for a meal in New York’s Central Park in an attempt to show fellow tycoons that there is more to life than “luxury goods, gambling and prostitution”.

Chen Guangbiao, a recycling magnate from the eastern province of Jiangsu, issued the invitation to his “charity luncheon for 1000 poor and destitute Americans” through two prominent advertisements placed in The New York Times and The Wall Street Journal this week. Guests will be given $US300 ($319) to spend on “occupational training” as well as lunch at the Loeb Boathouse restaurant in Manhattan’s Central Park.

All they do is splurge on luxury goods, gambling and prostitution and very few of them sincerely live up to their social responsibility.  

The restaurant, which featured in the 1989 film When Harry Met Sally, describes itself as “the ultimate urban oasis” and “a haven for romantics and nature lovers”.

Mr Chen said he hoped that the lunch, which he expected to cost about $US1 million, would boost relations between China and the US and change perceptions of wealthy Chinese.

“I want to spread the message in the US that there are good philanthropists in China and not all are crazy spenders on luxury goods,” he told Hong Kong’s South China Morning Post on Wednesday.

The tycoon, whose past stunts include selling canned air to raise awareness of pollution and smashing a Mercedes Benz to draw attention to global warming, also hoped to serve as a role model for Chinese billionaires.

He said: “There are many wealthy Chinese billionaires but most of them gained their wealth from market speculation and colluding with government officials while destroying the environment.

“I can’t bear the sight of it, because all they do is splurge on luxury goods, gambling and prostitution and very few of them sincerely live up to their social responsibility.”

It was not immediately clear whether Mr Chen’s guests would be offered a set menu at the Central Park feast or be allowed to choose from the restaurant’s a la carte lunch menu, which features dishes such as Lemon-Oregano Crusted Salmon and Yellowfin Tuna Sashimi with Tobiko Caviar and Jalapeno Wasabi Vinaigrette.

In a 2010 interview with The Telegraph, Mr Chen said he hoped to build a “charity army” of wealthy Chinese business people who would pump large chunks of their profits back into society.

Leading in the 21st century: An interview with Shell’s Ann Pickard on Distributed Leadership

Leading in the 21st century: An interview with Shell’s Ann Pickard

After building a career in Africa, Australia, and now the Arctic, the Royal Dutch Shell executive vice president has developed core leadership principles to safeguard employees and the environment.

June 2014

Distributed leadership

Sprints and marathons

Knowing when to listen

Ann Pickard, the executive vice president, Arctic, at Royal Dutch Shell, built her career in the far-flung corners of the global oil-and-gas industry. In this interview with McKinsey’s Rik Kirkland, she discusses her leadership principles, the impact of listening, and the satisfaction of empowering all employees. An edited transcript of Pickard’s remarks follows. Read more of this post

China’s Collateral Rehypothecation Fraud Is Systemic

China’s Collateral Rehypothecation Fraud Is Systemic

Tyler Durden on 06/14/2014 14:57 -0400

It’s official – everyone’s involved! According to the 21st Century Business Herald, at least 17 financial institutions involved in copper, aluminum and other nonferrous metals financing business face losses of almost 15 billion Yuan (not including the contagious rehypothecated collateral chains involved) due to the over-invoicing of the Qingdao port. Crucially, it appears that the evaporation of collateral (i.e. multiple loans secured by the same collateral) has been confirmed officially and banks such as Standard Chartered have already ceased any new business via this supposedly secured channel. Read more of this post

How Smart Beta ETFs Affect Stock Volumes, Correlations

How Smart Beta ETFs Affect Stock Volumes, Correlations

by Michael IdeJune 13, 2014, 12:17 pm

Fundamental investors may have to consider how smart beta strategies can impact their own positions Read more of this post

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