Indian Regulator Recommends State-Run Firms Raise Public Shareholding; SEBI Says the Government Should Cap its Stake in Listed Companies at 75%

Indian Regulator Recommends State-Run Firms Raise Public Shareholding

SEBI Says the Government Should Cap its Stake in Listed Companies at 75%

MUKESH JAGOTA And KENAN MACHADO

June 19, 2014 9:56 a.m. ET

NEW DELHI—India’s stock market regulator recommended Thursday that state-controlled companies be required to sell at least 25% stakes to the public.

The Securities and Exchange Board of India said it wants to close the loophole that allows state-run firms to remain listed even if only 10% of their shares are held by the public. Read more of this post

Cancer Doctors Ring Up Big Medicare Bills for Tarnished Drug Procrit; Florida Oncology Group Stands Out Among Its Peers for Use of Pricey Drug

Cancer Doctors Ring Up Big Medicare Bills for Tarnished Drug Procrit

Florida Oncology Group Stands Out Among Its Peers for Use of Pricey Drug

CHRISTOPHER WEAVER, ANNA WILDE MATHEWS and TOM MCGINTY

Updated June 19, 2014 2:55 p.m. ET

Many cancer doctors now use a drug called Procrit sparingly.

It was approved in 1989 for anemia and became a popular treatment for that side effect of chemotherapy. But regulators later learned Procrit can speed tumor growth and hasten death in cancer patients. Today, use of this class of drug—best known as EPO, a substance Lance Armstrong took illicitly to pedal faster and longer—is sharply restricted.

image001-3  Read more of this post

Want to Be a Millionaire? Move to Hong Kong; Hong Kong mints millionaires faster than any of the world’s other top 25 economic powerhouses, according to a new survey on the rich by Capgemini and RBC Wealth Management

Jun 19, 2014

Want to Be a Millionaire? Move to Hong Kong

Hong Kong mints millionaires faster than any of the world’s other top 25 economic powerhouses, according to a new survey on the rich by Capgemini and RBC Wealth Management.

Tis the season of wealth reports – the new 2014 World Wealth Report is the second global survey of the world’s rich in as many weeks (Boston Consulting Group released its wealth tome last week). And again, the latest survey confirmed an obvious outcome of Asia’s economic boom: The region is home to more millionaires than ever. Read more of this post

Amazon’s Bezos on How the Fire Phone Is Like Chocolate Ice Cream; Amazon’s Fire Phone Is Too Much, Too Late

Jun 19, 2014

Amazon’s Bezos on How the Fire Phone Is Like Chocolate Ice Cream

GREG BENSINGER

Amazon.com AMZN -2.21% Wednesday introduced the Fire smartphone, a device the company hopes will stand out from a crowded field with face-tracking cameras and gesture-based navigation. It’s a big bet that Amazon can take market share in a cutthroat business dominated today by Apple AAPL -0.35% and Samsung.

The Wall Street Journal sat down with Amazon CEO Jeff Bezos to talk about how the Fire phone came to be, why it’s an important next step for the company and how it’s like chocolate ice cream. Read more of this post

Investors Lose Appetite for Darden; Activist Investors Are Furious Over Decision to Sell Red Lobster for $2.1 Billion

Investors Lose Appetite for Darden

Activist Investors Are Furious Over Decision to Sell Red Lobster for $2.1 Billion

SPENCER JAKAB

June 19, 2014 3:35 p.m. ET

Darden Restaurants Inc. DRI -0.40% has had a lot on its plate lately, but it may regret skipping the seafood course.

Activist investors are furious with Darden for agreeing last month to sell Red Lobster, its second-largest chain, for $2.1 billion. Some are calling for the entire board to be replaced. Fiscal fourth-quarter results, due on Friday, almost seem like an afterthought given the larger debate on strategy. Read more of this post

Regulation Could Weigh on Buoyant Markit

Regulation Could Weigh on Buoyant Markit

PAUL J. DAVIES

June 19, 2014 3:15 p.m. ET

When a group of well-informed insiders decide to sell, it pays to be careful about what is on offer. This is doubly true when those insiders are running the sale process.

So it is with Markit Group, the financial data and services firm whose stock debuted in New York Thursday. Most of the shares sold came from investment banks that not only owned almost half the company, but are among its key customers and suppliers.

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Markit was a smart idea in a different time. It was set up to provide much-needed transparency to a world of over-the-counter derivatives and securities trading. Since the financial crisis, though, much of that world is being forced into the light of centralized clearing, trade reporting and even futures exchanges. About 44% of all over-the-counter derivatives, or swaps, were being centrally cleared by the end of 2012, up from just over one-tenth in 2007, according to Aite, an independent group. Read more of this post

Nikon Lost in Hall of Mirrors

Nikon Lost in Hall of Mirrors

AARON BACK

June 19, 2014 6:26 a.m. ET

Nikon is a laggard in mirrorless cameras like this Panasonic model Bloomberg News

image001

To turn its luck around, Nikon 7731.TO 0.00% needs to start breaking some mirrors.

That’s not normally thought of as a way to good fortune, but mirrors—specifically, the ones that add bulk to its high-end single-lens-reflex cameras—are one of Nikon’s biggest problems right now. Read more of this post

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

image001-6

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

The Science Behind Hangovers Is Terrible

The Science Behind Hangovers Is Terrible

DINA SPECTOR SCIENCE  JUN. 14, 2014, 1:36 AM

Everyone has their own hacks for relieving the symptoms of a hangover, but there’s still no single hangover cure that’s proven to work.

Sure, people have asked tons of questions about what causes morning hangovers and how we can alleviate that pounding head, I-want-to-puke feeling, but apparently we just don’t have very good answers. Read more of this post

http://www.youtube.com/watch?v=AzWK-x5WlXk

http://www.youtube.com/watch?v=AzWK-x5WlXk

This Is The Biggest Ad In India Right Now And It’s Absolutely Terrifying

KATIE RICHARDS ADVERTISING  JUN. 14, 2014, 8:50 AM

In a world where younger generations are becoming more tech-savvy and social media crazy, kids are using cell phones and Facebook almost from the time they are born. At least that’s what MTS Telecom’s latest ad for its 3GPlus Network is saying. Read more of this post

Thai leaders employ ancient hero to boost their cause

June 13, 2014 1:49 pm

Thai leaders employ ancient hero to boost their cause

By Michael Peel in Bangkok

Thailand famously banned the Hollywood movie The King and I for its allegedly offensive and distorted picture of the country’s monarchy. Now the new military junta in Bangkok is delivering its riposte: 35,000 free seats to see the sword-wielding biopic of an earlier royal ruler promoted as a nationalist hero for these troubled post-coup times. Read more of this post

A guide to (mis)communication: In the UK, it is important to finish meetings by summing up key points; but in France they can end with an ambiguous ‘Et voilà!’

June 13, 2014 1:09 pm

A guide to (mis)communication

By Gillian Tett

In the UK, it is important to finish meetings by summing up key points; but in France they can end with an ambiguous ‘Et voilà!’

In recent months, a wry little document called the “Anglo-Dutch translation guide” has been tossed between the email boxes of bankers, diplomats, business people and journalists. This lists phrases that are commonly – and completely – misunderstood when English and Dutch people talk to each other. Read more of this post

Over pumpkin soup, the Nobel Prize-winning economist Edmund Phelps talks to the FT’s Martin Wolf about creativity and innovation

June 13, 2014 1:16 pm

Edmund Phelps

By Martin Wolf

Over pumpkin soup, the Nobel Prize-winning economist talks to the FT’s Martin Wolf about creativity and innovation

Ihave arranged to meet Edmund (Ned) Phelps, director of the Center on Capitalism and Society at Columbia University, at the Kongress Hotel in Davos during the World Economic Forum. It is old-fashioned and very Swiss. Read more of this post

Boom or hype? The truth about menswear; The fashion industry says menswear sales are soaring but the real picture is more complicated

June 13, 2014 7:17 pm

Boom or hype? The truth about menswear

By Charlie Porter

The fashion industry loves to talk about a menswear boom but how much do the big brands actually sell?

It’s a simple question: how important is menswear to the main fashion labels? It seems timely, too, since this weekend sees the beginning of the menswear collections for spring/summer 2015. Ideally, the show experience is supposed to be intoxicating, creating a happy stupor that luxury conglomerates hope will make male consumers buy yet more stuff. But how much menswear are the brands actually selling? Read more of this post