Shipping Alliance Set to Make Waves; Maersk and Two Other Container Shippers Aim to Cuts Costs Amid Overcapacity

Shipping Alliance Set to Make Waves

Maersk and Two Other Container Shippers Aim to Cuts Costs Amid Overcapacity

COSTAS PARIS

March 21, 2014 3:40 p.m. ET

LONDON—After sailing past U.S. regulators, a major shipping alliance is on course to roil the global container business, by reducing costs for the world’s biggest operators, while squeezing smaller shippers. Read more of this post

IMF’s Property Tax Hike Proposal Comes True With UK Imposing “Mansion Tax” As Soon As This Year

IMF’s Property Tax Hike Proposal Comes True With UK Imposing “Mansion Tax” As Soon As This Year
Tyler Durden on 03/22/2014 09:50 -0400
One could see this one coming from a mile away.
It was a week ago that we highlighted the latest implied IMF proposal on how to reduce income inequality, quietly highlighted in its paper titled “Fiscal Policy and Income Inequality”. The key fragment in the paper said the following: Read more of this post

Shiller: The Global Economy’s Tale Risks; Fluctuations in the world’s economies are largely due to the stories we hear and tell about them

ROBERT J. SHILLER
MAR 20, 2014
The Global Economy’s Tale Risks
TOKYO – Fluctuations in the world’s economies are largely due to the stories we hear and tell about them. These popular, emotionally relevant narratives sometimes inspire us to go out and spend, start businesses, build new factories and office buildings, and hire employees; at other times, they put fear in our hearts and impel us to sit tight, save our resources, curtail spending, and reduce risk. They either stimulate our “animal spirits” or muffle them. Read more of this post

South Korea’s public debt surpassed $841.7 billion in 2013, the highest level in history

Public debt hits all-time high last year
2014.03.19 16:43:37
South Korea’s public debt surpassed $841.7 billion in 2013, the highest level in history.
But the increase in public debt halved from a year ago.
The central and local governments owed 496.6 trillion won as of last year, and 45 non-financial state-owned companies either financed by the government or led by chiefs appointed by the government had to repay 412.1 trillion won, excluding shareholdings and investments, according to the Bank of Korea’s economic data system Wednesday. Read more of this post

Korean President Park to visit Germany; After Park’s father visited Germany, Korea’s per capita GDP soared from $80 to $24,000 and the aggregate GDP reached $1.1 trillion

President to visit Germany
Kim Seon-gul, Lee Sang-duk
2014.03.21 15:26:05
South Korean President Park Geun-hye is scheduled to make a four-day state visit to Germany from March 25.
Germany provided a textbook example for the incumbent President and her father, former President Park Chung-hee. After Park’s father visited Germany, Korea’s per capita gross domestic product (GDP) soared from $80 to $24,000 and the aggregate GDP reached $1.1 trillion as of last year, coming in at 15th in the world. Read more of this post

New standards for bottled water may affect Tingyi, Coca-Cola

New standards for bottled water may affect Tingyi, Coca-Cola
Staff Reporter
2014-03-22
China’s National Health and Family Planning Commission is soliciting opinion regarding new standards for bottled drinking water, which may not be good news for companies that market their products under the guise of “mineral water,” Shanghai’s National Business Daily reports. Read more of this post

Wesley Gray: Is Smart Beta Bullsh!+?

Is Smart Beta Bullsh!+?
Posted MAR 21 2014 by DAVID FOULKE in TURNKEY BRAINWAVE
John Bogle did a tremendous service to humanity when he launched the first index fund in 1975. By providing people with a passive, low-cost way to invest in the entire stock market, Bogle enabled generations of investors to get cheap beta exposure, and avoid the high fees, commissions, taxes, and other costs associated with active management approaches. Clearly, consumers thought this was a good idea. The firm he founded, the Vanguard Group, now manages approximately $2.75 trillion. Read more of this post

Are China’s ‘ghost’ cities building towards economic ruin?

Are China’s ‘ghost’ cities building towards economic ruin?
March 22, 2014
Philip Wen
Demons are lurking behind China’s unprecedented housing projects.
Fears of property oversupply in China’s poorest province
Massive urban redevelopment projects in Guizhou are prompting fears of massive oversupply and fears that its capital, Guiyang will be left a ghost city. Read more of this post

Energy debate challenges facade of wa

Energy debate challenges facade of wa
BY STEPHEN HESSE
MAR 22, 2014
Torn between his nationalistic instinct to resurrect what he seems to regard as Japan’s great bygone days of empire-building and the mundane demands of caring for the pressing needs of his nation, a remarkably caring soul might almost feel sorry for Prime Minister Shinzo Abe during his first months in office. Almost. Read more of this post

The road ahead looks much smoother for restructured auto supplier Visteon, as a simplified strategy promises to end years of disappointing results

SATURDAY, MARCH 22, 2014
Visteon: In the Driver’s Seat
By CHRISTOPHER C. WILLIAMS | MORE ARTICLES BY AUTHOR
The road ahead looks much smoother for restructured auto supplier Visteon, as a simplified strategy promises to end years of disappointing results.
When Tim Leuliette emerged from the boardroom to lead Visteon in August 2012, the auto supplier had swerved into a ditch. Two years out of bankruptcy, it had run through a chief executive, and its stock was languishing in the $30s, after trading as high as $75 the year before. Hedge funds and “special situation” investors were agitating for management to sell assets or even the whole company to boost the share price.
Soon after Leuliette became CEO, one such investor, anxious to cash out, asked him, “Can you get the stock to $50?” Leuliette’s reply: “It’s not important that I sell assets to get to $50. I can get you to $50, $60, or $70. There is a strategy here. Give us time.”
Read more of this post

Why the Dollar Endures: The U.S. currency’s wide appeal owes much to the weaknesses of the global monetary system

Why the Dollar Endures
By ESWAR S. PRASADMARCH 21, 2014

ITHACA, N.Y. — Why hasn’t the dollar plunged?
Since the 2007-8 global financial crisis, the public debt of the United States government has soared to $17.4 trillion, roughly equivalent to America’s annual gross domestic product. The Federal Reserve has pumped more than $1 trillion into the economy in an attempt to spur lending — and, in effect, weaken the dollar. Uncle Sam’s credit rating was downgraded, for the first time ever, in 2011. Round after round of fighting over the debt ceiling led to a government shutdown last October. Bitter gridlock has made it difficult for America to get its fiscal house in order. Read more of this post

Art & Architecture: The Treasures of Marwariland; The Marwaris trace their descent to a small pocket of Rajasthan, a state with an opulent tradition of art and architecture

Art & Architecture: The Treasures of Marwariland
by Kishore Singh | Mar 22, 2014

The Marwaris trace their descent to a small pocket of Rajasthan, a state with an opulent tradition of art and architecture
The Marwaris have little to do with Marwar (or Jodhpur, as most people know the capital) in spite of the moniker they bear with such pride; they were originally from the Shekhawati region: Small towns in a triangle that lay between Delhi, Jaipur and Bikaner. (Ironically, there they weren’t known as Shekhawats, that nomenclature being claimed by the Rajputs.) They flourished as businessmen with an acute sense of enterprise, making money from the satta markets and stock exchanges of cities and countries far from their own.

Read more of this post

Brave new world of electronic bond markets; Single-dealer bond trading venues are falling out of favour

March 21, 2014 1:04 pm
Brave new world of electronic bond markets
By Michael Chuang
Single-dealer bond trading venues are falling out of favour
As bond markets continue the march towards greater electronic execution, there are increasing signs that bond trading venues owned by single dealers will not have much of a role in the new world. Read more of this post

China bears face investment challenge; Hurdles make it difficult to place bets on corporate downturn

March 21, 2014 6:31 am
China bears face investment challenge
By Josh Noble in Hong Kong, Ralph Atkins and Delphine Strauss in London
Like their furry namesakes, China bears often go into hibernation – whether due to improving economic data, government stimulus measures, a rising currency, or bulging foreign exchange reserves.
But as spring arrives, the bears are back out in force. China has recently witnessed its first bond default of modern times, its biggest currency sell-off in years, a fresh slide in its equity markets, and multiple downgrades to growth forecasts. Investors have rarely been so universally negative on the world’s second-largest economy.

Read more of this post

The Problem With Selling Plain Vanilla in Our Information-Rich Digital Economy

March 21, 2014, 1:12 PM ET
The Problem With Selling Plain Vanilla in Our Information-Rich Digital Economy
IRVING WLADAWSKY-BERGER
I recently read an intriguing column, The End of Mass Production, by technology author and columnist Kevin Maney. I first met Mr. Maney several years ago when he was at USA Today, and have always enjoyed his columns and books. Read more of this post

Currency Risks Could Grow in Emerging Markets

March 20, 2014, 5:24 PM ET
Currency Risks Could Grow in Emerging Markets
EMILY CHASAN
Corporations could be entering a new phase of currency volatility. Emerging-market currencies in countries such as Argentina, India and China could have a bigger impact on earnings in the coming years.
“In the very long term there’s a good reason to invest in emerging markets, however in the next few years I think we’ll see a lot of volatility,” said Bilal Hafeez, Deutsche Bank AG’s global head of foreign exchange strategy. Read more of this post

NetApp CFO: The Finance Chief’s Role Is Growing

March 21, 2014, 5:43 AM ET
NetApp CFO: The Finance Chief’s Role Is Growing
In so many industries, chief financial officers have to think more about technology, data and security. Nick Noviello is the chief financial officer of NetApp Inc., a provider of storage and data management solutions based in Sunnyvale, Calif. He spoke with CFO Journal Editor Noelle Knox about the decisions many CFOs are facing. Read more of this post

The World’s Riskiest Stock Market? Russia’s Stock Market Is Now Among the World’s Cheapest. It Could Also Be a Screaming Risk

The World’s Riskiest Stock Market?
Russia’s Stock Market Is Now Among the World’s Cheapest. It Could Also Be a Screaming Risk.
JOE LIGHT
March 21, 2014 3:04 p.m. ET
Rarely does a nation’s stock market get this cheap. But investors who want a taste better have a strong stomach.
Russia’s RTS Index is down 21% this year on fears that an escalating crisis in Ukraine could lead to damaging sanctions from Western countries or armed conflict. Read more of this post

Why Cash Is King Again; Worried About Data Breaches? There’s a Simpler Solution Than Turning to Bitcoin. Sally Beauty became the latest company to admit that hackers had broken into its computer systems.

Why Cash Is King Again
Worried About Data Breaches? There’s a Simpler Solution Than Turning to Bitcoin.
BRETT ARENDS
March 21, 2014 3:49 p.m. ET
Paper or plastic?
Until recently the idea of using actual cash when you went shopping, instead of a credit or debit card, seemed to be becoming hopelessly old-fashioned. My local coffee shop has installed a new gadget on the counter so people can buy a coffee with their smartphones. Read more of this post

Astra Isn’t Immune to Competition; Company’s Revival Rests on Flimsy Foundations

Astra Isn’t Immune to Competition
Company’s Revival Rests on Flimsy Foundations
HELEN THOMAS
March 21, 2014 1:21 p.m. ET
AstraZeneca, AZN.LN -0.33% laggard of the pharmaceutical sector, has put on a burst of speed.
The U.K. drug maker, trading at nearly 16 times forecast 2015 earnings, is now among the highest-valued of the large European pharma companies, closing in on Swiss rival Roche.RHHBY +0.92% That is quite a turnaround: Six months ago, Astra traded at a 20% discount to U.S. and European peers; a year ago, it trailed by 30%. Read more of this post

India has already raised more than $500 million from investors for a new fund that will invest in the stocks of state-controlled companies

India Raises $513 Million for State Company Stock Fund
Foreign Institutional Investors Accounted for About $120 Million
KENAN MACHADO
March 21, 2014 8:50 a.m. ET
MUMBAI—India has already raised more than $500 million from investors for a new fund that will invest in the stocks of state-controlled companies, a person familiar with the deal said Friday.
The exchange-traded fund—which was created to buy shares of state companies directly from the Indian government—has raised close to $513 million, out of which foreign institutional investors accounted for around $120 million, the person said.
The fund accepted investments from retail investors until 6 p.m. India time Friday. It is likely to buy the government shares and list before April 4, the person said. It will be managed by Goldman Sachs Asset Management (India) Pvt. Read more of this post

M&A pickup among U.S. conglomerates may be undercut by prices

M&A pickup among U.S. conglomerates may be undercut by prices
Fri, Mar 21 2014
By Lewis Krauskopf
NEW YORK (Reuters) – When United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz) paid more than $16 billion to buy plane parts-maker Goodrich Corp about two years ago, the U.S. conglomerate’s biggest-ever takeover raised some eyebrows for its rich valuation. Read more of this post

China unveils pilot rules, paves way for firms to issue preferred shares for first time

China unveils pilot rules, paves way for firms to issue preferred shares for first time
Fri, Mar 21 2014
By Lu Jianxin and Kevin Yao
SHANGHAI/BEIJING (Reuters) – China’s securities regulator on Friday issued rules for a pilot programme allowing listed companies to issue preferred shares, paving the way for the long-awaited scheme to be launched soon in what the regulator called a major capital market reform. Read more of this post

James Montier: “The Market Is Overvalued By 50%-70%” And “Nothing At All” Is Attractively Valued

James Montier: “The Market Is Overvalued By 50%-70%” And “Nothing At All” Is Attractively Valued
Tyler Durden on 03/21/2014 15:15 -0400
A month ago we presented a must read interview by Swiss Finanz und Wirtschaft with respected value investor Howard Marks, in which, when explaining the motives driving rational investing he summarized simply, “in the end, the devil always wins.” Today, we are happy to bring our readers the following interview with one of our favorite strategists, GMO’s James Montier, in which true to form, Montier packs no punches, and says that the market is now overvalued by 50% to 70%, adding that there is “nothing at all” that has an attractive valuation, and that he sees a “hideous opportunity set.” Read more of this post

Fighting the flab: Corporate headquarters have put on weight, and need to slim down again

Fighting the flab: Corporate headquarters have put on weight, and need to slim down again
Mar 22nd 2014 | From the print edition

“ONE of the most extraordinary corporate centres in America.” This is how Trian Partners, a disgruntled shareholder of PepsiCo, described the headquarters of the snacks-to-soft-drinks company in a recent letter to its board. Set amid lakes and fountains in 100 acres of wealthy Westchester County, New York, PepsiCo’s HQ features seven interconnected three-storey office buildings designed in the 1960s by Edward Durell Stone, a pioneering American modernist architect. Its crown jewel is the Donald M. Kendall Sculpture Gardens, named after a former chief executive, which has works by artists such as Alexander Calder, Henry Moore and Auguste Rodin. Mr Kendall reportedly intended the garden to reflect his vision for the company by creating an atmosphere of “stability, creativity and experimentation”. Read more of this post

Chinese internet firms: Migrating finches; China’s online firms are flying to American stockmarkets

Chinese internet firms: Migrating finches; China’s online firms are flying to American stockmarkets
Mar 22nd 2014 | SHANGHAI | From the print edition

DICK COSTOLO, the boss of Twitter, was in Shanghai this week to see first-hand what the Galapagos islands of the internet look like. He follows in the footsteps of Mark Zuckerberg, Facebook’s founder, who also came for a study tour. Thanks to censorship and hostility to foreign internet firms, otherwise global giants such as Facebook, Twitter, Google and eBay are banned or irrelevant. Weird and wonderful local variations have, like Darwin’s finches, evolved in this isolated market instead. Read more of this post

South Africa: Why they booed him; A watchdog says an improperly lavish sum was spent on the president’s home

South Africa: Why they booed him; A watchdog says an improperly lavish sum was spent on the president’s home
Mar 22nd 2014 | JOHANNESBURG | From the print edition

MANY a homebuyer is tempted by a down-at-heel residence that might be profitably resold after redecorating. Often they misjudge the scale of the work needed and end up out of pocket. The president of South Africa, Jacob Zuma, made a different sort of error. His is proving costly not because he overpaid for rebuilding but because the taxpayer did. Read more of this post

Germany’s Kion Group aims to become world leader of industrial trucks

Germany’s Kion Group aims to become world leader of industrial trucks
FRANKFURT, March 20 (Xinhua) — Kion Group, one of the world leading truck firms, on Thursday released financial results for the year 2013 and announced it aimed to become world leader of industrial trucks.
The Kion Group based in the city of Wiesbaden in Germany, reported consolidated revenue of 4.495 billion euros (6.193 billion U.S. dollars), slightly down from 4.56 billion euros in 2012. Read more of this post