Abenomics’ wobbly arrows

Updated: Tuesday February 18, 2014 MYT 2:37:46 PM

Abenomics’ wobbly arrows

BY JAMES SAFT

REUTERS: Japan’s bold Abenomics plan is producing spluttering results on key consumption and investment measures, potentially undermining its resolve.

Japan’s economy grew by just 0.3% in the fourth quarter, less than half estimates. That’s despite Japan and its central bank following through strongly on a massive campaign of asset purchases, which is on course to double the amount of money sloshing around the economy in the 20 months to the end of 2014. Read more of this post

Andy Kessler: Don’t Tread on Me-or Make Me Stand in Line; American exceptionalism includes hating to queue. Silicon Valley has been happy to help out.

Andy Kessler: Don’t Tread on Me—or Make Me Stand in Line

American exceptionalism includes hating to queue. Silicon Valley has been happy to help out.

ANDY KESSLER

Feb. 17, 2014 7:12 p.m. ET

What is the heart of American exceptionalism? Is it Alexis de Tocqueville’s “they would rather be equal in slavery than unequal in freedom”? How about Abraham Lincoln’s “conceived in liberty”? Or Ronald Reagan’s spirit of rugged individualism? Meh. Those are answers for a high-school civics exam. It’s actually much simpler: Americans will put up with just about anything—except for waiting in line. Read more of this post

Bitcoin is in a crisis. How the ecosystem responds could determine whether the currency goes the way of tulip bulbs in the 1600s or becomes a breakthrough like email

Feb 17, 2014

Bitcoin’s Crisis Is Turning Point for Currency

FRANCESCO GUERRERA

Many bitcoin

users are probably too young to remember the Notorious B.I.G.’s 1997 rap hit “Mo Money Mo Problems.” A YouTube trip down memory lane won’t be a waste of time: Mo virtual money, mo problems.

After weeks marked by technological breakdowns, regulatory issues and general questions over its viability, bitcoin is in the midst of the worst crisis since it was proposed in a white paper in 2008. Read more of this post

Comment: Now or never for Europe’s exchanges

February 17, 2014 11:29 am

Comment: Now or never for Europe’s exchanges

By Philippe Carré

European businesses are in a bit of a bind. The eurozone, with the exception of Germany, is depressed and the continent’s businesses need to invest to compete with their rivals in America and Asia.

However, money is an extremely scarce commodity, even in spite of the historically low interest rates. The usual route, borrowing from banks, is being obstructed by the need for these banks to fill the estimated €400bn hole in their balance sheets. Read more of this post

More and more Europeans are keen on destroying the EU from the inside

More and more Europeans are keen on destroying the EU from the inside

By Jason Karaian @jkaraian

February 17, 2014

We have just passed the 100-day mark until elections will be held for the European parliament. According to the latest polls, the self-hating parliament, as the head of a prominent think tank puts it, is about to do even more self-harm. Across the EU, voters are flocking to euroskeptic parties whose platforms emphasize taking back powers ceded to Brussels, if not dismantling the bloc entirely.

According to election-tracking site Electionista, which helpfully collects all of the latest poll data in an online spreadsheet, these mostly rightwing parties are poised to make big gains from their previous showings: Read more of this post

Spain’s underground economy is booming; Spain’s economic crisis, the government’s response to it, and pervasive corruption have inspired a flowering of the black market economy

Spain’s underground economy is booming

February 14, 2014: 12:13 PM ET

Spain’s economic crisis, the government’s response to it, and pervasive corruption have inspired a flowering of the black market economy.

By Ian Mount

FORTUNE — Outside the front door of an IKEA in the Barcelona suburb of L’Hospitalet de Llobregat, a group of men — mostly immigrants from Ecuador — offer shoppers informal delivery services. In Spain’s crisis economy, it’s a competitive business — to cut down on conflict, the drivers pick numbered balls to set a queue — and with some negotiating, a shopper can get immediate delivery for less than what IKEA’s official drivers charge. Read more of this post

Peugeot’s China-funded bailout will create an awkward ménage à trois

Peugeot’s China-funded bailout will create an awkward ménage à trois

By Lily Kuo @lilkuo

39 minutes ago

The imminent bailout of troubled carmaker PSA Peugeot Citroen will split control between a French auto dynasty giving up control after more than 200 years, a Chinese state-owned auto company on the rise, and the French government. What could possibly go wrong? Read more of this post

A Big Bet on Gluten-Free: The number of people who must avoid gluten for health reasons is relatively small, but other consumers have joined them to create a lucrative market the food industry covets

A Big Bet on Gluten-Free

By STEPHANIE STROMFEB. 17, 2014

The Girl Scouts recently introduced a gluten-free chocolate chip shortbread cookie to their annually anticipated line of sweet treats.

Vodka companies vie over which one of them was the “first” to introduce a gluten-free version of their products.

And Trader Joe’s recently joked in an advertising flier promoting gluten-free foods that it was selling “Gluten Free Greeting Cards 99 Cents Each! Every Day!” — even though it then went on to say the cards were not edible. Read more of this post

Campbell Soup’s thinks Goldfish crackers can save it from soup

Campbell’s thinks Goldfish can save it from soup

By Roberto A. Ferdman @robferdman

February 14, 2014

You’d think a soup company looking to branch out would be betting the farm on oyster crackers. But Campbell’s is convinced Goldfish are the next big thing.

The American soup giant reported strong earnings today, led by a 14% sales jump in the company’s global baking and snacking business. The company owns Pepperidge Farm, which makes, among other goodies, Goldfish. Sales of the popular, fish-shaped crackers grew by 5% this quarter, adding to a decade of solid growth. Read more of this post

Over half of South Korean listed companies’ shares retreated from late 2007.

55% of S. Korea listed firm shares fall from 7 years ago

2014.02.17 17:36:22

Over half of South Korean listed companies’ shares retreated from late 2007.
Shares of 55 percent, or 719 of 1,319 domestic listed firms closed lower on February 14, 2014 compared to their closing levels in late 2007, said FnGuide and E-Trade Securities Korea that conducted and released the comparison Monday commissioned by Maeil Business Newspaper. During the same period, 45 percent of them, or 600 listed firms, saw their shares advance.
Over the corresponding period, shares of 75 percent, or 338 of 500 US companies listed on the S&P 500, gained, and 57 percent, or 408 of 711 companies listed on the Taiwan Capitalization Weighted Stock Index (TAIEX) climbed as well. In comparison, the Korean stock market is badly bearish.  Read more of this post

Regional Korean gov’t heads to be stripped of budget compilation rights for mismanagement

Regional gov’t heads to be stripped of budget compilation rights for mismanagement

Park Man-won, Chang Won-joo

2014.02.16 13:40:00

The South Korean government will introduce ‘insolvency system’ for poorly-managed regional governments. The new system is an equivalent of corporate workout system. In addition, safety index, which calculates frequency of safety accidents, by region will be made public this year while one-room buildings which have frequent cases of crimes against women will be subject to anti-crime certification.  Read more of this post

S. Korea sees no progress in stem cell research for a decade

S. Korea sees no progress in stem cell research for a decade

Park Gi-hyo, Won Ho-sup

2014.02.18 17:40:23

South Korea has no place in the global competition for stem cell research. The US, Japan and China are running ahead, but Korea has stagnated for ten years after traumatized by the Hwang Woo-suk scandal.
The US, a top country in the field backed by the federal government’s support for embryonic stem cell research since 2009, successfully cloned human embryonic stem cells for the first time in the world last year. Japan became the world’s first country to create induced pluripotent stem cells (iPS cells) in 2006. Last month, a 30-year-old Japanese female researcher took one step further and developed a new technique to create stem cells, called Stimulus-Triggered Acquisition of Pluripotency (STAP).  Read more of this post

South Korean President Park Geun-hye warns against broadcasting market monopoly; “I urge broadcasting regulators to ensure that the industry will not fall into the hands of a handful of conglomerates.”

Park warns against broadcasting market monopoly

Lee Jae-cheol

2014.02.17 17:43:16

South Korean President Park Geun-hye noted Monday, “I urge broadcasting regulators to ensure that the industry will not fall into the hands of a handful of conglomerates.”
President Park said at the policy briefing by the Ministry of Science, ICT and Future Planning and Korea Communications Commission “conglomerates, which set their foot in the broadcasting market, are expanding their presence via vertical integration including increasing their broadcasting channel.”  Read more of this post

The Korean government plans to announce a set of comprehensive measures to curb mounting household debt, the main drag on the South Korean economy, next week

Gov’t to announce measures to curb mounting household debt

Chun Beom-joo, Lee Hyun-jung

2014.02.18 17:46:24

The government plans to announce a set of comprehensive measures to curb mounting household debt, the main drag on the South Korean economy, next week. The measures, to be drawn up by the Finance Ministry and Financial Services Commission, are expected to include limiting loans to those who are seeking to live in high-priced rental homes with debt and reducing the size of housing mortgage loans. The government is also likely to encourage banks to increase the ratio of fixed-rate lending, limit lending by secondary financial institutions and expand support for the financially disadvantaged brackets.  Read more of this post

The South Korean state-run companies markedly cut back on their spending after the government’s plan to normalize their operations

S. Korean state-run companies tighten belt

Shin Hyun-gyu

2014.02.17 14:59:40

The South Korean state-run companies markedly cut back on their spending after the government’s plan to normalize their operations. Their earnings also posted steep rises on the back of utility rate hikes including electricity bill.  Read more of this post

ATV executive director Louie King-bun hit back at disgruntled television audiences and told them to “use their brains” after social activist Lui Yuk-lin threw “hell money” outside the venue

ATV boss tells furious viewers to use brains
Kelly Ip
Tuesday, February 18, 2014
ATV executive director Louie King-bun hit back at disgruntled television audiences and told them to “use their brains.”

In the first public hearing on the license renewals of TVB and ATV at City Hall in Central, many participants urged the government not to renew ATV’s license as its programs are mostly reruns and lack quality. Read more of this post

For India’s railway children, a dangerous life by the tracks

For India’s railway children, a dangerous life by the tracks

Tuesday, February 18, 2014 – 14:11

Reuters

NEW DELHI – The young boys huddled over a fire between two tracks just beyond the platforms of New Delhi railway station, oblivious to the trains rolling past. They were trying to boil some water to make tea.

One, a grime-encrusted urchin wearing a filthy baseball cap at a jaunty angle, said this was their home. He had run away after his mother died and he could take no more beatings from his alcoholic father. Read more of this post

Gold smuggling in India to accelerate if import curbs stay

Updated: Tuesday February 18, 2014 MYT 2:56:44 PM

Gold smuggling in India to accelerate if import curbs stay

MUMBAI/SINGAPORE: Gold demand in India is expected to be robust in 2014, likely leading to a further jump in smuggling if curbs on bullion imports remain, the World Gold Council (WGC) said.

Indian gold consumption is expected to be 900-1,000 tonnes in 2014 on strong jewellery and investment purchases, according to the WGC, still slightly behind top buyer China, whose demand is expected to be 1,000-1,100 tonnes. Read more of this post

Housing cost of monthly tenants outstrips homeowners’ for first time in Seoul metro area

Housing cost of monthly tenants outstrips homeowners’ for first time in Seoul metro area

2014.02.18 16:28:00

South Korea’s housing cost of tenants paying monthly rents surpassed that of homeowners for apartments in Seoul and the surrounding areas for the first time, as monthly rents have risen while interest rates fell, according to a survey.
As the real estate market shows clearer signs of recovery, the increasing burden on tenants and reducing burden on purchasing houses are forecast to drive up the demand for buying home. Read more of this post

Justice never sleeps, literally; Judges’ grueling work hours ― key to how Korean courts handle heavy workload

2014-02-17 18:10

Justice never sleeps, literally

Judges’ grueling work hours ― key to how Korean courts handle heavy workload
By Kim Da-ye
More than 6 million lawsuits are filed every year across all courts in Korea, which together employ some 2,500 judges.
The Korean Supreme Court received 35,777 new cases and handled more than 36,200 in 2012. Although data for direct comparison isn’t available, over 7,700 cases were filed in the U.S. Supreme Court in the 2011 term ending in October 2012. Seventy-nine cases were argued and 73 were disposed. Read more of this post

TWG founder in tussle with major shareholder OSIM

TWG founder in tussle with major shareholder OSIM

POSTED: 17 Feb 2014 19:55
The founder of luxury tea company TWG has filed a lawsuit against majority shareholder OSIM International.

SINGAPORE : The founder of luxury tea company TWG has filed a lawsuit against majority shareholder OSIM International, alleging that the Singapore lifestyle firm and some of its directors had conspired to dilute his stake in the firm he had built up.
Manoj Murjani and his company The Wellness Group have asked the Singapore High Court  to reverse recent corporate developments at TWG Tea Company that had resulted in OSIM raising its stake in TWG Tea to 70 percent from 53.7 percent.
Besides OSIM, Murjani is also suing several individuals including OSIM founder Ron Sim and TWG Tea’s other founder Taha Bou Qdib.
OSIM acknowledged receipt of the lawsuit on Monday but said the allegations were “unmeritorious and groundless”. Read more of this post

432 Vietnamese SOEs set to conclude equitization by 2015

432 Vietnamese SOEs set to conclude equitization by 2015

HANOI, Feb. 18 (Xinhua) — Vietnam has set to conclude equitization of 432 state-owned enterprises (SOEs) by 2015, said a government official.

Pham Viet Muon, deputy head of the Permanent Steering Committee for Innovation and Enterprise Development of Vietnam, said at a conference on implementing tasks of SOEs restructuring during 2014- 2015 period in capital Hanoi on Tuesday that the country must speed up equitizing SOEs in the coming two years as the number of SOEs finishing equitization remained low after three years of implementation. Read more of this post

The Singapore Institute of Technology (SIT) will become the Republic’s fifth autonomous university after Parliament passed a Bill on Monday.

SIT to be Singapore’s fifth autonomous university

By Leong Wai Kit 
POSTED: 17 Feb 2014 23:35
The Singapore Institute of Technology (SIT) will become the Republic’s fifth autonomous university after Parliament passed a Bill on Monday.

SINGAPORE: The Singapore Institute of Technology (SIT) will become the Republic’s fifth autonomous university.

This comes after Parliament on Monday passed a Bill that Minister for Education Heng Swee Keat said gives more young Singaporeans a wider choice in pursuing a degree here. Read more of this post

Ruling May Curb Lawyers’ Mobility; Partners at struggling law firms may find it harder to jump ship after a new ruling increased the risk of lawsuits against firms that hire them.

Ruling May Curb Mobility of Lawyers at Struggling Firms

Judge’s Ruling Raises Risk of Suits Against New Employers

JENNIFER SMITH

Feb. 17, 2014 7:19 p.m. ET

Partners at struggling law firms may find it harder to jump ship in the future after a new ruling raised the risk of lawsuits against the firms that hire them.

Firms that hire lawyers from bankrupt law firms have long been subject to “unfinished business” claims, which seek to recover profits from ongoing legal work that partners take with them to their new homes. Such claims have typically been confined to firms that take on lawyers once a firm has shut down, under the theory that pending matters are assets that rightfully belong to the failed firm. Read more of this post

Big IPOs Don’t Mean Big Gains in China

February 17, 2014, 9:59 a.m. ET

Big IPOs Don’t Mean Big Gains in China

China’s newly reopened initial public offering market shows that large deals don’t necessarily lead to big gains for investors.

Although all 45 companies that have listed in China since its securities regulator ended a more than yearlong moratorium on IPOs in late December are trading above their listing prices, it is companies in the consumption and information-technology sectors championed by Beijing, or those that were priced cheaply, that are posting the sharpest gains. Read more of this post

Time to change the narrative about nation building in Singapore

Time to change the narrative about nation building in Singapore

Tuesday, February 18, 2014 – 09:00

Tham Yuen-c

Singapolitics

The tale of how modern, independent Singapore was built is one familiar to most Singaporeans.

It starts with the country being thrust into statehood in 1965, after a brief flirtation with the Federation of Malaysia ended in a painful split. And it continues with the young Republic’s transformation from rags to riches.

At the centre of the story is the first generation of leaders, including founding prime minister Lee Kuan Yew and his key lieutenants like Dr Goh Keng Swee, Mr S. Rajaratnam and others. Read more of this post

JB folk cash in with ‘illegal rooms’

JB folk cash in with ‘illegal rooms’

Monday, February 17, 2014 – 11:45

New Straits Times

JOHOR BAHRU – Some unscrupulous homeowners in Johor Bahru have been caught extending and renovating their houses illegally to build more rooms to be rented out.

There are cases where three-room single-storey semi-detached houses were transformed into double- storey units with 24 rooms in each unit. Read more of this post

Run on Thai Bank Linked to Rice Subsidy Points to Strain on Economy

Run on Thai Bank Linked to Rice Subsidy Points to Strain on Economy

Government Says Protests Will Cause Economy to Slow in Months to Come

WARANGKANA CHOMCHUEN and NOPPARAT CHAICHALEARMMONGKOL

Updated Feb. 17, 2014 12:03 p.m. ET

BANGKOK—Depositors have withdrawn nearly $1 billion from a bank linked to a foundering rice-subsidy program, the bank said Monday, in one of the first signs that Thailand’s months-old political stalemate is starting to affect the economy. Read more of this post

China Folds On Reforms – Bails Out 2nd Shadow-Banking Default After “Last Drop Of Blood” Threats

China Folds On Reforms – Bails Out 2nd Shadow-Banking Default After “Last Drop Of Blood” Threats

Tyler Durden on 02/17/2014 14:20 -0500

As we showed over the weekend, it is abundantly clear that for all the talk of reform, Chinese authorities have found the gap between words and deeds uncrossable. First, Chinese authorities bailed out the relatively small CEG#1 Trust (for fear of contagion); second, the PBOC injects CNY 375 bn into short-term repo to save banks from a liquidity crisis at year-end; third, total social financing rose by the largest amount on record in January (despite all the talk of deleveraging following the Plenum); and now, fourth, thanks to a CNY 2bn loan (to an entirely insolvent coal company), Chinese authorities have bailed out a 2nd wealth-management product – this time even smaller. Read more of this post

“Soros Put” Hits Record As Billionaire’s Downside Hedge Rises By 154% in Q4 To $1.3 Billion

“Soros Put” Hits Record As Billionaire’s Downside Hedge Rises By 154% in Q4 To $1.3 Billion

Tyler Durden on 02/17/2014 12:15 -0500

A curious finding emerged in the latest 13F by Soros Fund Management, the family office investment vehicle managing the personal wealth of George Soros.

Actually, two curious findings: the first was that the disclosed Assets Under Management as of December 31, 2013 rose to a record $11.8 billion (this excludes netting and margin, and whatever one-time positions Soros may have gotten an SEC exemption to not disclose: for a recent instance of this, see Greenlight Capital’s Micron fiasco, and the subsequent lawsuit of Seeking Alpha which led to the breach of David Einhorn’s holdings confidentiality). Read more of this post