Politics, Fed could whip up new emerging markets storm

Politics, Fed could whip up new emerging markets storm

Fri, Feb 14 2014

By Natsuko Waki

LONDON (Reuters) – A stabilization in emerging marketsafter January’s rout may turn out be the calm before the storm if political flare-ups and Fed policies provide the spark for the next round of selling. Read more of this post

Rent-seeking culture dampens entrepreneurial spirit

Rent-seeking culture dampens entrepreneurial spirit

Saturday, Feb 15, 2014

The Straits Times

SINGAPORE – Property developers and agents should refrain from using words and phrases like “unnerving” and “not sustainable” when referring to the current state of the property market (“CDL chief calls for review of property cooling measures”; last Saturday). Read more of this post

Over-enthusiasm for emerging markets is just one fashion I have seen in the past 16 years, says Mohamed El-Erian

February 14, 2014 6:10 pm

Emerging-world fashions that change with the seasons

By Mohamed El-Erian

Over-enthusiasm for emerging markets is just one fashion I have seen in the past 16 years, says Mohamed El-Erian

As I prepare to step down from Pimco at the end of March, emerging markets are once again in the news for all the wrong reasons. In Argentina the currency has collapsed, Thailand and Ukraine are riven with political conflict, and Turkey is shaky. Read more of this post

Brazil housing bubble fears as economy teeters

February 14, 2014 4:48 pm

Brazil housing bubble fears as economy teeters

By Samantha Pearson in São Paulo

Thalita de Jesus Moreira had just given birth to her fifth child when she moved to New Palestine, a vast squatter settlement on the outskirts of São Paulo.

Her landlady had left her with little choice, she says – late last year the monthly rent for her family’s bedsit nearby was increased to R$500 ($207), almost as much as the minimum wage her husband was earning as a caretaker at a factory. Read more of this post

Crisis-hit European utilities square up to technological revolution

February 14, 2014 5:15 pm

Crisis-hit European utilities square up to technological revolution

By Guy Chazan

Faced with a grim present and an even grimmer future, Europe’s utilities are being forced to reinvent themselves – and adapt to a technological revolution in home energy services.

Once unassailable incumbents are under pressure as never before, squeezed by the explosive growth of renewables and low wholesale energy prices. Read more of this post

Corporate wealth divisions throw a mirror on society; Evidence growing of a ‘winner takes all’ economy

February 14, 2014 6:06 pm

Corporate wealth divisions throw a mirror on society

By Brooke Masters

Evidence growing of a ‘winner takes all’ economy

For months now, the improving economic indicators in both the UK and the US have not been mirrored in better results from many companies – particularly those that cater to consumers.

That split was heightened this week as the Bank of England unveiled surprisingly bullish economic forecasts in which it predicted UK growth would hit 3.4 per cent for 2014, instead of 2.8 per cent as forecast. Read more of this post

Does Australia have too many accountants

Does Australia have too many accountants?

February 12, 2014 – 4:00PM

Edmund Tadros and Agnes King

It used to be one of the safest career choices. But while Australians are deserting the accounting profession, an avalanche of foreign accounting students has hit our universities, prompting a fight between the government and big firms about how many accountants we actually need. Read more of this post

The real story behind the biggest collapse in modern Canadian legal history; Heenan Blaikie reveals the flaw of the partnership model

Ian Holloway: Heenan Blaikie reveals the flaw of the partnership model

Ian Holloway, Special to Financial Post | February 11, 2014 | Last Updated:Feb 11 2:05 PM ET
So a giant has fallen. Last week, the remaining partners of the law firm of Heenan Blaikie LLP voted to dissolve the partnership and to wind up the business

. Practice groups have decamped to firms that, until a short time ago, were rivals. A rump tried to become the Canadian bridgehead of global firm DLA Piper, but those talks appear to have failed. Read more of this post

The politics behind China’s banned banquets

The politics behind China’s banned banquets

Staff Reporter

2014-02-12

Extravagant banquets may now be frowned upon by China’s ruling Communist Party, but they were once considered one of the most important tools for climbing the political ladder in China, reports Duowei News, an outlet run by overseas Chinese. Read more of this post

Private lending crisis cripples coal city of Ordos

Private lending crisis cripples coal city of Ordos

Staff Reporter

2014-02-12

After the housing market bubble burst in the city of Ordos in Inner Mongolia, which led to the liquidation of many of the city’s residents’ financial assets, people who funded the construction of the city have begun demanding a refund for their money from fundraisers, the Chinese-language Securities Times reports. Read more of this post

Watch out Woolies: Aldi’s rapid growth could open the door for others; Aldi has almost doubled its share of the $82 billion Australian grocery market and now accounts for more than 10 per cent of grocery sales

Watch out Woolies: Aldi’s rapid growth could open the door for others

February 12, 2014 – 4:54PM

Sue Mitchell

The rapid growth of German-owned supermarket Aldi in Australia could open the door for more foreign grocery chains, analysts say.

Aldi has almost doubled its share of the $82 billion grocery market and now accounts for more than 10 per cent of grocery sales, knocking Metcash’s IGA supermarket network out of third place. Read more of this post

Canada Clamps Down on Rich Chinese Migrants; Canada closed a controversial immigration program popular among rich Chinese that allowed wealthy individuals to effectively buy permanent residency

Canada Clamps Down on Rich Chinese Migrants

Ottawa Ends Its Immigrant Investor Program Popular Among Wealthy Chinese

JASON CHOW in Hong Kong and

ALISTAIR MACDONALD in Toronto

Feb. 11, 2014 11:34 p.m. ET

Canada closed a controversial immigration program popular among rich Chinese that allowed wealthy individuals to effectively buy permanent residency.

The cancellation of the Immigrant Investor Program, announced Wednesday, is the latest in a series of moves by Ottawa that have been perceived in parts of China and even Canada as limiting the inflow of Chinese people and investment into the country. Read more of this post

The Korea Development Bank (KDB) may see more than 1 trillion won ($933 million) in losses for 2013, largely due to huge loan-loss reserves for financially troubled conglomerates, the chief of the bank said

Economists predict that geo-engineering, performance drugs and artificial intelligence will shape our future

February 14, 2014 8:24 pm

Forecast: The world in 2114

Economists predict that geo-engineering, performance drugs and artificial intelligence will shape our future

Martin Weitzman

If there is one natural bridge spanning the chasm between today and a century from now, it is climate change. We can envision only the foundation of this bridge. Even so, we can make out enough features to sense that something big and possibly ominous may be on the distant horizon. Read more of this post

(Isia) – Global investors are heading back to Indonesia and sending stocks, bonds and the currency soaring, in a sharp reversal of sentiment after months of turmoil as the economy shows signs of improvement.

Investors Head Back to Indonesian Assets

Recent Data Indicate Improving Fundamentals

ANJANI TRIVEDI

Feb. 14, 2014 8:17 a.m. ET

Global investors are heading back to Indonesia and sending stocks, bonds and the currency soaring, in a sharp reversal of sentiment after months of turmoil as the economy shows signs of improvement.

The rupiah gained 3.4% against the dollar on Friday, the biggest one-day gain in four months, according to data provider CQG. For the week, the rupiah advanced 5%, making it Asia’s top-performing currency this year. Read more of this post

First of NYSE-Delisted China Stocks Launches Asian Offering

China Firm Preps for Hong Kong IPO

First of NYSE-Delisted China Stocks Launches Asian Offering

PRUDENCE HO

Updated Feb. 14, 2014 6:47 a.m. ET

HONG KONG—Two years ago, as Chinese companies listed in the U.S. battled a perception for being weak, or were tainted with fraud, many Chinese companies were taken private by their owners. Now, 15 months after it was bought out by its founder, the former New York-listed Gushan Environmental Energy Ltd. is raising up to US$96 million in a Hong Kong initial public offering. Read more of this post

South Korea has an unexpected new hit movie: the story of factory workers who became ill working for a company that looks a lot like the Korean giant Samsung.

South Korea’s Surprise Hit Film

South Korea has an unexpected new hit movie: the story of factory workers who became ill working for a company that looks a lot like the Korean giant Samsung

JEYUP S. KWAAK

Feb. 14, 2014 7:33 p.m. ET

South Korea has an unexpected new hit movie: the story of factory workers who became ill working for a company that looks a lot like the Korean giant Samsung. The makers of “Another Family”—the second-highest-grossing film to debut in South Korea last week—say it is based on the true story of a working-class family whose daughter contracted leukemia while working at a Samsung semiconductor factory and died of the disease in 2007. Read more of this post

China Prices a ‘Smoothed Version of Reality’

China Prices a ‘Smoothed Version of Reality’

ALEX FRANGOS

Feb. 14, 2014 7:03 a.m. ET

China’s economy faces many challenges. Rising prices aren’t one of them, at least according to official data.

Consumer prices in January were up 2.5% from a year earlier, matching December’s pace and within Beijing’s comfort zone. While such low inflation might normally make authorities feel safe opening the credit spigots, that’s unlikely to happen given the concern about the economy’s mounting debt load. Read more of this post

Bill Gates’ Energy Co. Files For Bankruptcy

Bill Gates’ Energy Co. Files For Bankruptcy

Tyler Durden on 02/14/2014 13:00 -0500

Submitted by Charles Kennedy via OilPrice.com,

Bill Gates’ Texas energy company has filed for bankruptcy protection as the depressed power market results in untenable financial losses.

The company, Optim Energy (EnergyCo LLC), owned by a Gates investment fund, filed Chapter 11 Bankruptcy papers on Wednesday for its three power plants in eastern Texas, citing their inability to counter growing losses in the current market. Read more of this post

Chinese Capital Markets Frozen As Bad Loans Soar To Highest Since Crisis

Chinese Capital Markets Frozen As Bad Loans Soar To Highest Since Crisis

Tyler Durden on 02/14/2014 14:05 -0500

Chinese capital markets are quietly turmoiling as debt issues are delayed and demand for “Trust” products – the shadow-banking-system’s wealth management ‘investments’ – is tumbling. As Nikkei reports, since January, 9 companies have postponed or canceled issuance plans (around $1 billion) and is most pronounced in privately-owned companies (who lack an implicit government guarantee). This, of course, is exactly what the PBOC wanted (to instill some fear into these high-yield investors – demand – and thus slow the supply of credit to the riskiest over-capacity compenies) but as non-performing loans in China surge to post-crisis highs, fear remains prescient that they will be unable to “contain” the problem once real defaults begin (as opposed to ‘delays of payment’ that we have seen so far).

Via Bloomberg,

Chinese banks’ bad loans increased for the ninth straight quarter to the highest level since the 2008 financial crisis, highlighting pressures on asset quality and profit growth as the world’s second-largest economy slows. Read more of this post

Japan’s Rakuten buys chat app Viber for $900 million to expand digital empire

Japan’s Rakuten buys chat app Viber for $900 million to expand digital empire

5:10am EST

By Chang-Ran Kim

TOKYO (Reuters) – Japanese e-commerce giant Rakuten Inc, controlled by billionaire Hiroshi Mikitani, will buy call and messaging app provider Viber Media Inc for $900 million in a deal that would more than double the number of users in its digital empire. Read more of this post

Prem Watsa “China Reminds Me Of US Housing In Boom”

Prem Watsa “China Reminds Me Of US Housing In Boom”

by VW StaffFebruary 14, 2014, 12:49 pm

Prem Watsa – Fairfax Financial Holdings Ltd (TSE:FFH) – Chairman and CEO on FFH conference call this morning.  Watsa discusses the state of the company with a “year in review” flavor, and looks to the future with a particular emphasis on China.  See  Prem Watsa: China Has Biggest Housing Bubble in History

Prem watsa Fairfax financial’s year end conference call

Thank you, Rick. Good morning, ladies and gentlemen. Welcome to Fairfax Financial Holdings Ltd (TSE:FFH)’s year-end conference call. I plan to give you some of the highlights and then pass it on to Dave Bonham, our CFO, for additional financial details. Read more of this post

Delhi Chief Minister Kejriwal resigns to protest the blocking of an anti-corruption Bill, less than 50 days after taking office in the Indian capital.

Delhi Chief Minister Kejriwal resigns

POSTED: 14 Feb 2014 23:19
Delhi Chief Minister Arvind Kejriwal announced his resignation on Friday to protest the blocking of an anti-corruption Bill, less than 50 days after taking office in the Indian capital.

NEW DELHI – Delhi Chief Minister Arvind Kejriwal announced his resignation on Friday to protest the blocking of an anti-corruption Bill, less than 50 days after taking power in the Indian capital. Read more of this post

Singapore SMEs start to push back at rising rents; ASME head bemoans ‘cartel’ of institutional landlords using ‘draconian measures’

PUBLISHED FEBRUARY 14, 2014

BUDGET ROUNDTABLE ON VIDEO

SMEs start to push back at rising rents

ASME head bemoans ‘cartel’ of institutional landlords using ‘draconian measures’

TEH SHI NING TSHINING@SPH.COM.SG

[SINGAPORE] Singapore’s small and medium-sized enterprises (SMEs) are getting proactive about the mounting rent pressures they face.

The Association of Small and Medium Enterprises (ASME) is studying the feasibility of a database to track industrial and retail rents. This would record effective rents rather than contractual ones, providing greater transparency for SMEs and their landlords, ASME president Kurt Wee said at BT’s Budget Roundtable. Read more of this post

Jakarta: The Luxury Property Capital of the World

Jakarta: The Luxury Property Capital of the World

By Josua Gantan on 4:05 pm February 13, 2014.
Jakarta. Nowhere in the world offered a better return on high-end property investment in 2013 than Indonesia’s capital, a leading global real-estate consultancy based in London said.

“The growth of the economy and the property sector might get slower — it depends on the global outlook — however, we remain positive on the Indonesian market,” Hasan Pamudji, Knight Frank Indonesia’s associate director for consultancy and research, told Jakarta Globe. Read more of this post

Can Indonesia Educate Itself Out of Middle-Income Status?

Can Indonesia Educate Itself Out of Middle-Income Status?

By Daniel Suryadarma on 6:36 pm February 13, 2014.
After successfully expanding their economies from low- to middle-income levels, many developing countries now face the risk of falling into the “middle-income trap.” The IMF defines this as “the phenomenon of hitherto rapidly growing economies stagnating at middle-income levels and failing to graduate into the ranks of high-income countries.” Read more of this post

Jakarta’s Garbage Time Bomb

Jakarta’s Garbage Time Bomb

By Harriet Conron on 11:11 am February 13, 2014.
Carts of rubbish line the streets surrounding the Rawasari waste separation facility. Inside, men work quickly, hungrily dissecting piles of rotting garbage with pitchforks, separating recyclable waste from biodegradable matter, and trash destined for Bantar Gebang.

Snatches of upbeat banter and laughter mingle with the flying baskets of rubbish, and in the rush occasionally pieces of glass, plastic and green waste end up in the truck with the landfill. Read more of this post

The promoter problem in Indian banks

The promoter problem in Indian banks

David Keohane

| Feb 14 10:55 | Comment | Share

Or — watch the rate of stressed asset growth in the industry:

That’s from Goldman, they of the Modi-fied viewpoint. You can check out United Bank of India for more… Read more of this post