Big Chinese Internet Companies Busy Building Online Education Platforms

Big Chinese Internet Companies Busy Building Online Education Platforms

By Tracey Xiang on August 29, 2013

Say it once again: China’s education market is huge and is moving online. While local startups are building online education services by modeling western ones or improving the must-criticized existing education system in China (they have raised so much money in the past half a year alone), local Internet giants are building platforms to accommodate all of them. Read more of this post

Baidu, AutoNavi Fighting for Navigation Market Share, Offering Apps for Free

Baidu, AutoNavi Fighting for Navigation Market Share, Offering Apps for Free

By Emma Lee on August 29, 2013

Baidu

Baidu (NASDAQ:BIDU) announced yesterday that it would offer Baidu Navigation for free ever after. The company promised today to refund the users who purchased their navigation services on both Android and iOS platforms. AutoNavi (NASDAQ:AMAP), a leading map service in China, followed suit shortly afterwards, declaring that its navigation software will also be offered for free. These moves will undoubtedly overhaul the navigation market. Compared with dedicated navigation machines usually priced at over 300 yuan ($48.67), Baidu and AutoNavi navigation apps once priced at 30 yuan and 50 yuan respectively are much cost-effective choices. Let alone the services are free now. AutoNavi Navigation has been pre-installed or downloaded for more than 70 million times, according to financial report of the company. Read more of this post

New WeChat Payment app to spur competition in China’s mobile payment market

New WeChat app to spur competition in mobile payment market

Staff Reporter

2013-09-01

The debut of the new version of edition 5.0 WeChat, a mobile messaging communication service developed by Chinese internet company Tencent, has sparked concerns among major e-commerce companies that the mobile payment segment will now be dominated by Tencent, the Guangzhou-based Southern Metropolis Daily reported. Last week, Tencent’s online service, Yixun, announced that its website will now support WeChat Payment, a new feature included in the latest version of WeChat. This has made it the first business to consumer website to be fully connected with the WeChat Payment interface. Read more of this post

Xbox Spinoff Seen More Likely With Ballmer Exit

Xbox Spinoff Seen More Likely With Ballmer Exit: Real M&A

After 13 years of declining value, some Microsoft Corp. (MSFT) investors want Steve Ballmer’s replacement to take bolder steps to reverse the slide at the world’s largest software maker. That could mean spinning off the Xbox video-game business. Ballmer’s retirement as chief executive officer may clear the way for a potential spinoff of the Xbox unit to unlock shareholder value. While a consumer success with $7 billion in annual sales, it’s one of Microsoft’s lower-margin divisions and doesn’t drive sales of the company’s core business services and software. Xbox may be worth at least $17 billion on its own, based on Nintendo Co. (7974)’s revenue multiple, according to data compiled by Bloomberg. Its value should be even higher given that Nintendo has operating losses, Wedbush Inc. said. Read more of this post

The Acxiom Corporation is to open a Web site that will allow individual consumers to see some of the information that the company has collected about them

August 31, 2013

A Data Broker Offers a Peek Behind the Curtain

By NATASHA SINGER

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“You have to make things visible,” says Scott Howe, who demonstrated a Web site that will let consumers see some of Acxiom’s data about them. IT can be disconcerting to learn what, not to mention how much, marketers know about us. Consider a consumer like Scott E. Howe. The Acxiom Corporation, a marketing technology company that has amassed details on the household makeup, financial means, shopping preferences and leisure pursuits of a majority of adults in the United States, knows that Mr. Howe is 45, married with children, the owner of a house in the 2,500-square-foot range, and is interested, among other things, in tennis, domestic travel, cooking, crafts, sweepstakes and contests. Those intimate details, Mr. Howe says, are entirely accurate. Read more of this post

Technology ‘Moat’ : Oil Patch Follows Smartphone Makers in Patent Defenses

Oil Patch Follows Smartphone Makers in Patent Defenses

Battles for supremacy in the $680 billion oil and gas industry are moving from the hardhats and steel-toed boots of the drilling rig to the Brooks Brothers suits of law firms representing the biggest patent holders. Schlumberger Ltd. (SLB), Halliburton Co. (HAL) and Baker Hughes Inc. (BHI), the world’s largest oil service providers, secured a total of 1,257 patents last year, more than twice the annual number of a decade earlier. In the past three years, Exxon Mobil Corp. (XOM) doubled its revenue from technology it licenses to others. Read more of this post

Pay-TV Dinosaurs Study Evolution; Web TV Is a Threat to Pay TV—but the Old School Can Adapt

Updated August 30, 2013, 7:23 p.m. ET

Pay-TV Dinosaurs Study Evolution

Web TV Is a Threat to Pay TV—but the Old School Can Adapt

MIRIAM GOTTFRIED

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Even if pay-TV providers are getting pushed around the living room, they can do more to keep a grip on the remote control. Cable and satellite companies find their margins attacked on one side by rising programming costs and on the other by more consumers dropping video subscriptions in favor of cheaper online options. Meanwhile, a new generation of consumers is being raised on services like Netflix NFLX -1.37% . And Big Tech companies angling to deliver TV over the Internet may be starting to make more serious inroads, as evidenced by recent news of Google‘s GOOG -1.00% talks with the National Football League and Sony‘s SNE -1.09% preliminary deal with ViacomVIA +0.03% to carry its channels. Read more of this post

How Google can avoid becoming the next Microsoft, as told by an insider with knowledge of both

How Google can avoid becoming the next Microsoft, as told by an insider with knowledge of both

By Christopher Mims @mims August 30, 2013

The deeper you dig into the causes of Microsoft’s decade of stagnation and the departure of CEO Steve Ballmer, the more apparent it is that the problems Microsoft faced affect all large companies, to one extent or another. Fortunately for the world (and unfortunately for Microsoft) the company’s dysfunction drove away so many talented engineers and managers that they are practically climbing over one another to recount what went wrong in Redmond. Quartz has already written about how Microsoft veterans who left the company see its problems, and what they think needs to be done to fix them. But the observations of one of the veterans we spoke with are worth writing about separately—because of their implications for Google, the company’s most visible competitor. This person, who requested to remain anonymous, has inside knowledge of the workings of Google as well. Here are some of our key takeaways from talking with them.

1. Too many cooks in the kitchen will kill innovation every time

As a rule, decision-making grows exponentially harder with the number of people involved. In Microsoft’s early days, it was, like most young organizations, fairly flat in structure. A general manager oversaw 50-300 people, and decisions only needed his or her blessing. But in part because graduating into management is the only route to a promotion at Microsoft, the company added more and more layers of management. Read more of this post

From Example to Excess in Silicon Valley

August 31, 2013

From Example to Excess in Silicon Valley

By JENNA WORTHAM

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I CAN remember a time when technology, and the people behind it, routinely filled me with a sense of wonderment — like the first time I logged into a chat room and, later, the first time I swiped open an iPhone. Another memorable moment for me happened roughly six years ago, when I tried Goog-411, an experimental phone service from Google. At a time when smartphones were far from ubiquitous, the service allowed people to call a toll-free number and obtain business listings by using voice commands. It was partly an effort to improve Google’s own internal software, but it left me marveling at its combination of technological brilliance and public service — completely in keeping with the company’s motto of “Don’t be evil.” Read more of this post

After Animal Crossing, Pokemon is Key for Nintendo

Aug 30, 2013

After Animal Crossing, Pokemon is Key for Nintendo

By Daisuke Wakabayashi

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A man sits by a huge poster of Pokemon characters in Tokyo, in this July file photo.

A lot is riding on Pikachu’s little yellow shoulders. With a growing number of consumers playing videogames on smartphones and tablet computers, Nintendo’s biggest weapon in enticing gamers to buy its hardware is to create appealing games that can’t be played anywhere else. Sequels of proven hit franchises like “Animal Crossing” are central to that strategy.  Perhaps no franchise is as important to the success of its portable game systems as the “Pokemon,” or Pocket Monsters, series, a long-running favorite among young children who collect and train cute-looking monsters for head-to-head battle. Read more of this post

Japan’s Public Pension Fund Suffers Biggest-Ever Bond Losses

Japan’s Public Pension Fund Suffers Biggest-Ever Bond Losses

Japan’s Government Pension Investment Fund, the world’s largest manager of retirement savings, posted its smallest gain in three quarters in the period ended June on record domestic bond losses. GPIF, which has 121 trillion yen ($1.24 trillion) in assets, earned a 1.9 percent return last quarter compared with a 6.9 percent gain in the prior three months, according to a statement on its website today. Market investments in Japanese bonds fell 1.5 percent while domestic stocks jumped 9.7 percent, the fund said. Losses on local bonds were wider than the previous record quarterly decline in 2008, said Tokihiko Shimizu, director general of the research department at GPIF. Read more of this post

AGS Transact Technologies: From Dispensing Paints to Money

AGS Transact Technologies: From Dispensing Paints to Money

by Pravin Palande | Aug 31, 2013

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The banks may be the face but AGSTT is the muscle behind at least 25,000 ATMs in India

AGS Transact Technologies (AGSTT), the brainchild of Ravi Goyal, is the leading provider of touch point technology solutions to the banking industry. It derives 70 percent of its turnover from the supply and maintenance of ATMs for banks. The remaining 30 percent is generated by providing similar dispensing technology solutions to the petroleum, retail and paints industries. It operates on an outsourced transaction-based model where the machines are built and maintained by the company instead of the bank. Or, simply put, AGSTT takes care of leasing, building and managing the cash lifecycle of the ATMs, and charges the bank based on the transactions that take place on the machines.  Read more of this post

Wal-Mart Prepares New India Venture

August 30, 2013, 11:23 a.m. ET

Wal-Mart Prepares New India Venture

Retailer Expected to Formally Request Approval to Operate Supermarkets

RAJESH ROY

NEW DELHI—U.S. retail giant Wal-Mart Stores Inc. WMT +0.76% is expected to submit soon a formal proposal to the Indian Trade Ministry to operate supermarkets in the country, a senior government official said on Friday. ‎ Scott Price, Wal-Mart’s Asia chief executive officer, met with officials at the Department of Industrial Policy and Promotion, said an official familiar with the matter. Read more of this post

S Chand: India’s Fastest-Growing Educational Publisher; A strategy to acquire and grow is set to elevate the 76-year-old educational publishing veteran to domestic market leader

S Chand: India’s Fastest-Growing Educational Publisher

by Udit Misra | Aug 29, 2013

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A strategy to acquire and grow is set to elevate the 76-year-old educational publishing veteran to domestic market leader

The beginnings of the S Chand Group were steeped in nationalism. Started by Shyam Lal Gupta in 1937, its mission was to publish Indian authors unable to find a voice in colonial times. S Chand has evolved into one of the biggest domestic publishers and exporters of textbooks. It publishes all types of educational books: Higher education, technical and management education, school books (they account for 60 percent of its revenues). Read more of this post

E-Cigarette Makers’ Ads Echo Tobacco’s Heyday

August 29, 2013

E-Cigarette Makers’ Ads Echo Tobacco’s Heyday

By STUART ELLIOTT

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Electronic cigarettes may be a creation of the early 21st century, but critics of the devices say manufacturers are increasingly borrowing marketing tactics that are more reminiscent of the heady days of tobacco in the mid-1900s. With American smokers buying e-cigarettes at a record pace — annual sales are expected to reach $1.7 billion by year’s end — e-cigarette makers are opening their wallets wide, spending growing sums on television commercials with celebrities, catchy slogans and sports sponsorships. Those tactics can no longer be used to sell tobacco cigarettes, but are readily available to the industry because it is not covered by the laws or regulations that affect the tobacco cigarette industry. The e-cigarette industry is also spending lavishly on marketing methods that are also still available to their tobacco brethren, including promotions, events, sample giveaways and print ads. Read more of this post

Aluminum Industry Seen by JPMorgan Unprofitable on LME Rule

Aluminum Industry Seen by JPMorgan Unprofitable on LME Rule

Two-thirds of aluminum producers would be losing money because of lower premiums paid on top of exchange benchmarks if the world’s biggest metals bourse approves rules to cut waiting times at its warehouses, according to JPMorgan Chase & Co. Premiums to obtain the metal will drop 60 percent to about $100 a metric ton as a result of the new rules the London Metal Exchange is expected to approve in October, Benjamin Defay, an analyst at the bank in London, wrote in a report e-mailed today. The LME proposed to oblige warehouses where waits extend for 100 days or more to let more metal out than they take in. Read more of this post

Jitters over high public debt in Malaysia

Jitters over high public debt in Malaysia

Saturday, Aug 31, 2013

Yong Yen Nie

The Straits Times

MALAYSIA – With the Indonesian rupiah and Indian rupee plunging and economies in turmoil as foreign funds flee, economists are wondering if Malaysia is next. Malaysia, whose bond market now has a record level of foreign holdings, has not been spared as foreign funds return to dollar-denominated assets. As it is, the ringgit has already depreciated 7 per cent against the US dollar this year, to RM3.33 to the greenback. Read more of this post

Quant pioneer Clifford Asness thinks bonds are expensive but don’t constitute a bubble, and stocks are a little pricey, too. So what’s the best course?

SATURDAY, AUGUST 31, 2013

The Big Danger: Overreliance on Stocks

By LAWRENCE C. STRAUSS | MORE ARTICLES BY AUTHOR

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Quant pioneer Clifford Asness thinks bonds are expensive but don’t constitute a bubble, and stocks are a little pricey, too. So what’s the best course?

Armed with an M.B.A. and a doctorate in finance from the University of Chicago, Clifford S. Asness can talk about the arcane workings of the markets with the best of them. One of his key points, however, is very simple: Many investors place too big a bet on stocks and lack sufficient diversification in their portfolios. Asness, who co-founded AQR Capital Management (the name stands for applied quantitative research) in 1998 after working at Goldman Sachs in quantitative research, is a big believer in variations of four of his firm’s key strategies: value, momentum, defensive, and “carry” (which includes shorting lower-yielding assets and investing in higher-yielding ones). He calls these the “big four” and argues that, because they have low or negative correlations with one another, they provide protection in all markets. Read more of this post

With Huge War Chests, Activist Investors Tackle Big Companies

AUGUST 30, 2013, 9:01 PM

With Huge War Chests, Activist Investors Tackle Big Companies

By MICHAEL J. DE LA MERCED and JULIE CRESWELL

Microsoft executives faced an unusual challenge in April when a $12 billion hedge fund, ValueAct, announced that it had bought a nearly $2 billion stake in the company with the intention of shaking things up. To many analysts, the possibility that ValueAct, with less than 1 percent of Microsoft’s stock, could succeed seemed improbable at best. The firm buys shares in companies, hoping to fight for board seats and change the targets’ corporate strategies. Read more of this post

The End of the Emerging-Market Party; in Atlas of Economic Complexity, when economies began producing more complex products, a harbinger of sustainable growth followed

The End of the Emerging-Market Party

Ricardo Hausmann, a former minister of planning of Venezuela and former Chief Economist of the Inter-American Development Bank, is a professor of economics at Harvard University, where he is also Director of the Center for International Development.

30 August 2013

CAMBRIDGE – Enthusiasm for emerging markets has been evaporating this year, and not just because of the US Federal Reserve’s planned cuts in its large-scale asset purchases. Emerging-market stocks and bonds are down for the year and their economic growth is slowing. To see why, it is useful to understand how we got here. Between 2003 and 2011, GDP in current prices grew by a cumulative 35% in the United States, and by 32%, 36%, and 49% in Great Britain, Japan, and Germany, respectively, all measured in US dollars. In the same period, nominal GDP soared by 348% in Brazil, 346% in China, 331% in Russia, and 203% in India, also in US dollars. Read more of this post

Losses Stalk Bond Investors in August as Europe’s Economy Grows

Losses Stalk Bond Investors in August as Europe’s Economy Grows

Corporate bondholders in Europe forfeited 0.2 percent in August, the fourth month of losses in a year that’s poised to generate the worst returns since 2008. Investment-grade debt in euros is returning 0.8 percent so far this year compared with 9 percent in the same period of 2012, Bank of America Merrill Lynch index data show. Average yields on the securities jumped nine basis points this month to 2.04 percent, near the highest in seven weeks, while yields on junk-rated bonds climbed 14 basis points to 4.9 percent, according to Bloomberg index data. Read more of this post

Goldman Sachs bought gold from clients after issuing a SELL call

Guess Which “Bearish” Bank Bought A Record Amount Of GLD In Q2

Tyler Durden on 08/30/2013 21:32 -0400

In early April, the status quo was exuberant when none other than Goldman Sachs issued a “sell” on the barbarous relic that has become so indicative of the exuberance of central planning. At the time, we were skeptical (to say the least) and, just for extra Muppetting, the bank also suggested its clients buy Treasuries. Well, now that the full details of holdings changes have been released for Q2, it is perhaps clearer than ever before that as the bank was telling its clients to “sell, sell, sell” it was itself “buy, buy, buy”-ing the Gold ETF (GLD) with both arms and feet. In Q2, Goldman Sachs added a stunning (and record) 3.7 million ‘shares’ of GLD. As Paulson dumped his GLD, Goldman lapped it up to become the ETF’s 7th largest holder. Goldman was the largest adding holder for GLD… buying what its clients were selling in size…

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Fed ‘taper’ is dicey game of dominoes

August 30, 2013 4:51 pm

Fed ‘taper’ is dicey game of dominoes

By Ralph Atkins in London

Lining up dominoes is a hazardous game, as any child knows. A small slip can result in the whole lot falling prematurely and chaotically. Investors may wonder whether Ben Bernanke, the US Federal Reserve chairman, is attempting a similar feat. Talk about Fed “tapering” – the central bank’s plans to scale back asset purchases, or “quantitative easing” – has driven US Treasury yields sharply higher since May. In response, investors have pulled out of riskier assets in emerging markets, sending share and bond prices spiralling downwards in countries such as India. Read more of this post

As a credit crisis hangover ebbs, company debt costs to rise

As a credit crisis hangover ebbs, company debt costs to rise

11:13am EDT

By Richard Leong

NEW YORK (Reuters) – It’s taken nearly five-years, but one of the most persistent bond market dislocations left behind by the financial crisis has finally dissipated, likely signaling that the days of super-cheap corporate borrowing costs are numbered. In the latest signal of the slow normalization process playing out in U.S. financial system, the 30-year swap spread closed above zero earlier this week for the first time since January 2009. Read more of this post

Innovation: Kite Mosquito Patch renders a person invisible to mosquitoes for up to 48 hours

Innovation: Kite Mosquito Patch

By Olga Kharif August 29, 2013

Innovators: Michelle Brown, Anandasankar Ray
Ages: 41, 39
Brown is chief scientist and Ray co-founder of Riverside (Calif.)-based Olfactor Laboratories.
Form and function: Kite Mosquito Patch, a nontoxic 1.5-inch-square sticker, renders a person invisible to mosquitoes for up to 48 hours.

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Michael Kors: How Did I Get Here?

Michael Kors: How Did I Get Here?

August 29, 2013

The fashion designer on his first trunk show, joining Project Runway, and other high points of his career.

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Ways to Fend Off The Wealth-Sapping Costs of a Disability

Ways to Fend Off The Wealth-Sapping Costs of a Disability

Lynn Francis was worried when her 81-year-old mother Joann started forgetting things a few years ago. Her fear turned to panic as her mother began inviting strangers into her house and giving away bank account information to just about anyone on the other end of the phone. Joann has become increasingly reclusive, afraid even to leave her house to go to the supermarket lest she forget how to find her way back. Lynn, who lives four hours away in Beaverton, Oregon, now takes turns with her sister buying her mother groceries. “Living alone has really become a safety issue for her,” says the 58-year-old yoga instructor. She’s trying to convince her mother to move into an assisted living facility. Read more of this post

Noonan: Work and the American Character; We need political leaders who can speak to the current national unease. Really good politicians don’t try to read the public, they are the public

August 29, 2013, 6:16 p.m. ET

Noonan: Work and the American Character

We need political leaders who can speak to the current national unease.

PEGGY NOONAN

Two small points on an end-of-summer weekend. One is connected to Labor Day and the meaning of work. It grows out of an observation Mike Huckabee made on his Fox show a few weeks ago. He said that we see joblessness as an economic fact, we talk about the financial implications of widespread high unemployment, and that isn’t wrong but it misses the central point. Joblessness is a personal crisis because work is a spiritual event. Read more of this post

“It is psychologically extremely difficult to attribute something to luck,” Michael Mauboussin

Michael Mauboussin, Interview No. 4

by SHANE PARRISH on AUGUST 28, 2013

Michael Mauboussin is the author of numerous books, including More Than You Know: Finding Financial Wisdom in Unconventional Places, Think Twice: Harnessing the Power of Counterintuition, and most recently The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing (a book that found its way to Warren Buffett’s desk.)

While Michael is well known in investment circles for his knowledge of biases and clarity of thinking, a lot of others are missing out on his insight. In his latest book he takes a look at how both skill and luck play a role — they are, on a continuum. For instance, he believes that basketball is 12% luck whereas hockey is 53% luck. Skill still plays a certain role but talent might mean more in certain places. I was fortunate to have an opportunity to interview Michael over email. In this wide-ranging interview we talk about what advice he’d offer his younger self today, the definition of luck, decision journals, and how organizations can improve their decisions and more. Let’s get started. Read more of this post

Did life on Earth start on Mars? A scientist lays out the evidence

Did life on Earth start on Mars? A scientist lays out the evidence

By Deborah Netburn

August 29, 2013, 7:09 p.m.

Did life as we know it start on Mars? Are we all Martians? These are the questions some serious scientists are considering. Speaking at an international conference of geochemists, chemist Steven Benner of the Westheimer Institute of Science and Technology argued Thursday that early Mars provided a more hospitable environment for life to spring up than early Earth. “The evidence seems to be building that we are actually Martians; that life started on Mars and came to Earth on a rock,” he said in a statement. Read more of this post