Otom (Others’ Time and Others’ Money) causing a ruckus among investors

Updated: Saturday August 24, 2013 MYT 7:53:44 AM

Otoms causing a ruckus among investors

GOVERNANCE MATTERS: BY SHIREEN MUHIUDEEN

THE acronym Otom looks harmless enough, but actually describes a devious charlatan who uses Others’ Time and Others’ Money (hence Otom) for their own gains. Most individuals will invest in a particular company only if they believe in the people who run it. It is all about trust and should that trust be broken, the investment will not be forthcoming. With so many investment opportunities these days, many investors are looking to diversify their portfolios by putting their money in various asset classes, which include properties, equities and, very often, unlisted equities. Read more of this post

MICHAEL BLOOMBERG: If You Want To Be Successful, Stop Going To The Bathroom

MICHAEL BLOOMBERG: If You Want To Be Successful, Stop Going To The Bathroom

JULIA LA ROCHE AUG. 23, 2013, 11:26 AM 18,286 41

michael-bloomberg-9

NYC Mayor Michael Bloomberg, the billionaire founder of media giant Bloomberg LP, said on his radio show that people who want to be successful shouldn’t go the bathroom a lot. From Politicker: [via Daily Intelligencer] “Everybody’s got different opportunities in front of ‘em, different skill sets they bring and luck plays a part of it. But my experience is that you make your own luck. The harder you work, the luckier you get.” “I always tried to be the first one in in the morning and the last one to leave at night, take the fewest vacations and the least time away from the desk to go to the bathroom or have lunch. You gotta be there. I mean, everybody says, ‘Oh, that’s crazy!’ But if you want to succeed, … you can’t control how lucky you are, you can’t control how smart you are, but you can control how hard you work, so that’s the first thing.” Cross your legs, folks.

Beware the Sirens of Management Pseudo-Science

Beware the Sirens of Management Pseudo-Science

by Freek Vermeulen  |   9:00 AM August 23, 2013

Management is not an exact science, they say. And I guess most things that involve the study of human behavior cannot be. But I sometimes wonder if that is the reason — or the excuse — that the business sections at airport bookshops are so full of nonsense. Quite often these books are written with panache. And the authors — aspiring “management thinkers” and “gurus” (never scientists) — have an excellent sense of the pulse of the business public. They are neither crooks nor charlatans; they write what they believe. But that doesn’t make their beliefs right. People can believe vigorously in voodooism, homeopathy, and creationism. Read more of this post

Bankers turned novelists found starting a new chapter tough but rewarding; “The world I used to occupy was all about dirty money”; “If you thought you worked hard as a banker you will be begging for mercy by the time you reach the end of a novel”

August 22, 2013 5:57 pm

They plotted to escape the City

By Emma Jacobs

Elmore Leonard, the American crime writer who died this week, was once asked if he could write about the wrongdoers on Wall Stin the aftermath of the financial crisis. “No – where’s the action?” he said. “My people don’t have stock. It’s the most boring thing in the world to make your money that way – using money to make money.” Nonetheless, a number of former executives, bankers and traders have attempted to do just that by leaving the constraints of the corporate world to become novelists – with some of them drawing on experiences from their previous careers. Read more of this post

Bank of America reviews long-hours culture after intern’s death; “Looking back, the money was just an anaesthetic. Ultimately, the money and perks could never make up for the exhaustion or the lack of control we all had over our lives.”

Bank of America reviews long-hours culture after intern’s death

Moritz Erhardt, who was ‘tipped for greatness’ was found dead in shower after working solidly for 72 hours at Merrill Lynch

Shiv Malik

theguardian.com, Friday 23 August 2013 13.36 BST

Bank of America Merrill Lynch will review its working practices and culture of long hours following the death of a German intern last week, who colleagues said had pulled three all-nighters in a row before being discovered by emergency services. One of the world’s largest banks issued a statement on Friday afternoon expressing shock at the death of 21-year-old Moritz Erhardt, who was working in Merrill Lynch’s investment banking division, and announced a review of working practices with a special focus on junior members of staff. Erhardt, from south-west Germany, was found dead in a shower cubicle at his temporary accommodation in east London last Thursday evening. Read more of this post

Any society with a lot of “threshold earners” is likely to experience growing income inequality. A threshold earner is someone who seeks to earn a certain amount of money and no more. If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold

From the January/February 2011 issue

The Inequality That Matters

Tyler Cowen

Does growing wealth and income inequality in the United States presage the downfall of the American republic? Will we evolve into a new Gilded Age plutocracy, irrevocably split between the competing interests of rich and poor? Or is growing inequality a mere bump in the road, a statistical blip along the path to greater wealth for virtually every American? Or is income inequality partially desirable, reflecting the greater productivity of society’s stars? Read more of this post

A Brief History of Maps: A look at maps through time and what they did, and didn’t, show us.

August 23, 2013, 9:40 p.m. ET

What Lurks Beyond the Boundaries

AMANDA FOREMAN

For adults vacationing with children, the greatest test of endurance used to be putting up with the refrain “Are we there yet?” The invention of Google Maps along with similar Internet tools has mercifully spread peace and good times where guesswork and frayed nerves reigned before. Still, it is important to remember that the desire to know “where and when” is one of the noblest questions of humankind. The earliest efforts to ascribe boundaries to space and time were directed up instead of down. The ancients began with the lights in the night sky. The oldest star chart in existence depicts the Orion constellation, carved onto the tusk of a woolly mammoth during the Stone Age. Read more of this post

The Cadbury legacy

Updated: Saturday August 24, 2013 MYT 9:54:30 AM

The Cadbury legacy

OPTIMISTICALLY CAUTIOUS: BY ERROL OH

WHAT should you do if you’re hoping that a prestigious institution will one day honour your work by setting up an archive to preserve and organise your records? Here’s a suggestion: Get appointed the head of a committee that produces an influential and timely report on a hot-button topic, and from then on, become a widely recognised authority on that subject. That worked for Sir Adrian Cadbury, not that there’s any evidence that he had indeed nursed such an ambition. On Wednesday, Cambridge University’s Judge Business School issued a press release saying Cadbury had recently donated to the school copies of all his speeches on corporate governance. These go to the Cadbury Archive housed at the school. The rest of the archive’s papers are those accumulated by Cadbury when he was chairman of Britain’s Committee on the Financial Aspects of Corporate Governance. The committee was formed in May 1991 by the Financial Reporting Council, the London Stock Exchange and the accountancy profession. Read more of this post

Does investing in gold have a future?

Last updated: August 23, 2013 7:33 pm

Does investing in gold have a future?

By Jonathan Eley

Few asset classes polarise opinion quite like gold. For some, it is the ultimate store of value that has withstood every crisis for millennia and will still be standing when the world’s financial system finally collapses under the weight of its own debt. For others, it is the “barbarous relic” that John Maynard Keynes so disdained, a non-productive, non-yielding asset beloved of crackpots and conspiracy theorists. Read more of this post

Why IKEA Doesn’t Care If Its Delivery Service Is A Nightmare; “Amazon can disrupt anything that doesn’t have to be assembled or curated”

Why IKEA Doesn’t Care If Its Delivery Service Is A Nightmare

JESSICA WINTER, SLATE AUG. 23, 2013, 10:54 AM 1,659 3

It all started because I wanted the Nelson Swag Leg Desk. Not a new, licensed reproduction—I wanted the scuffed-up, 1960-vintage Nelson Swag Leg Desk I found on eBay. It seemed to me mostly irrelevant that I could not afford the Nelson Swag Leg Desk. But my husband suggested a budgetary adjustment: Instead of pairing the Nelson Swag Leg Desk with pricey custom-built bookshelves as planned, we could economize with a jumbo set of Ikea’s Billy bookcases, which fit the appointed space almost to the centimeter. At first, I resisted this financially expedient arranged marriage of a modern-design icon to a prosaic dorm-room staple that I associated with beer pong and Gustav Klimt’s The Kiss. Eventually, though, I started talking myself into the compromise. I tried to think of it as a chic high-low flourish, like Anna Wintour pairing couture with jeans on her first Vogue cover, or Mike D plonking a Target pouf smack in the middle of his otherwise ultra-customized Brooklyn townhouse. Or something.

Read more of this post

No excuse for Glencore Xstrata writedown; Argument claiming ‘accounting construct’ fails to convince

Last updated: August 23, 2013 1:52 pm

No excuse for Glencore Xstrata writedown

By Paul Murphy

Argument claiming ‘accounting construct’ fails to convince

When large companies announce big asset impairment charges after a controversial takeover, as Glencore Xstrata did this week, two things happen. First, the financial press bang the multibillion-dollar figure into a headline or two; then, almost immediately, ranks of investment banking analysts step up to explain, in condescending tones, that this is just an accounting exercise and really doesn’t matter since no cash was involved. If the acquisition under debate involved the predator paying solely or largely in shares, as Glencore did in acquiring Xstrata, then those ignorant newspaper headlines are treated with complete disdain. Read more of this post

In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports

Fast forward with film

Updated: 2013-08-23 23:54

By Raymond Zhou ( China Daily)

In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports.

It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local.When Hollywood sent scouts to recover the secret formula, many of them reported that theseChinese movies were not particularly funny. Of course not. When you translate every line intoEnglish, you have lost much of the fun, leaving only a few sight gags. You have to sit with a full-house local audience to gauge the effect of these movies. Read more of this post

Illegal rooftop temple prompts unholy ire in Chinese city

Illegal rooftop temple prompts unholy ire in Chinese city

A privately-built illegal temple-like structure is seen on the top of a 20-storey residential block in the southern Chinese city of Shenzhen

Thu, Aug 22 2013

By Alexandra Hoegberg

(Reuters) – An elaborate temple-like structure perched on an apartment block in southeastern China is an illegal hazard that should be torn down, residents say. But they may not be as lucky as opponents of a lavish rooftop villa in Beijing. The temple in Shenzhen is believed to have been on the roof for about seven years but the complaints have hit the spotlight only after a doctor in Beijing was given 15 days to demolish his 800-square-metre (8,600-square-foot) house and garden built illegally atop a 26-storey apartment block. Read more of this post

Chinese Airlines Lure Pilots With Double the Pay of U.S. Captains; Carriers Boost Salaries to Hire Seasoned Crews, Causing Shortage Across Asia

August 23, 2013, 6:54 p.m. ET

Chinese Airlines Lure Pilots With Double the Pay of U.S. Captains

Carriers Boost Salaries to Hire Seasoned Crews, Causing Shortage Across Asia

JEFFREY NG

HONG KONG—China is snapping up the world’s supply of senior pilots, contributing to a global shortage and creating headwinds for Asia’s fast-expanding airlines. China is among the world’s fastest-growing air-travel markets, with domestic passenger traffic second only to the U.S., with the market expanding 14.7% in June compared with a year earlier, according to the International Air Transport Association. The rising middle class in China means millions more people are taking to the skies. Beijing plans soon to allow even more growth in its tightly controlled sector by encouraging the development of budget airlines, which are already booming across Asia. Read more of this post

Picky Fund Flows May Shield Northeast Asia Currencies From Fed Storm

Picky Fund Flows May Shield Northeast Asia Currencies From Fed Storm

By Jonathan Vit on 10:36 am August 23, 2013.
Singapore. Faced with tumbling markets as the US Federal Reserve becomes more likely to ease its stimulus measures, investors dedicated to emerging Asian markets are betting that the South Korean won and Taiwan dollar will fare better than their Southeast Asian counterparts. Dedicated Asian investors have to invest in the region so they are putting their money into Taiwan and Korea. Read more of this post

“Asean countries were almost the darlings of Asia for some time because people were saying they had higher growth prospects”

nvestors on High Alert After Rupiah Dive

By Yudith Ho, Liau Y-Sing & Yumi Teso on 11:08 am August 24, 2013.
The Thai baht and Malaysian ringgit are under closer scrutiny from investors concerned that worsening economic data will put them in a similar predicament to the Indonesian rupiah, which plunged 11 percent this year. The baht dropped 2.1 percent this week and the ringgit declined 0.8 percent as money was pulled from emerging-market assets on speculation the US Federal Reserve will soon start tapering stimulus. The rupiah slid 4.2 percent during the week, the most since November 2008, after the country reported a record current-account deficit on Aug. 16. Read more of this post

Everything you need to know about the mobile market in Vietnam in 2013

Everything you need to know about the mobile market in Vietnam in 2013

August 23, 2013

by Anh-Minh Do

Some of you may already know Appota, one of Vietnam’s rising startup stars from Hanoi. It’s a mobile content platform that helps distribute apps, games, and general content to users while also doing the good work of getting developers paid. Well, every few months Appota compiles all the data it has on mobile in Vietnam. This time it’s got a comprehensive report of the latest figures and a nice slideshare you can check out at the bottom. The report frames the landscapes in three ways: the good, the bad, and the ugly. But before we get into the mobile insights, it’s worth noting some key stats on Vietnam. The majority of the population, about 70 percent, are under 35. That makes for a very young population, 30 percent of which live in the cities. More than 17 million people live in Hanoi and Ho Chi Minh city, Vietnam’s two biggest cities and places where more than 70 percent of the population have access to the internet.

Read more of this post

Thailand’s joining Japan and Korea as one of the “old men” of Asia

Thailand’s joining Japan and Korea as one of the “old men” of Asia

By Gwynn Guilford @sinoceros August 23, 2013

The latest news on Thailand’s economy has been grim. Not only did the country enter a recession (paywall) in the second quarter of this year, but it increasingly faces the twin specters of rising household debt and capital outflows. And now there’s news that makes the outlook even grayer—literally. As a new Bank of America/Merrill Lynch report puts it, Thailand is “emerging as the old man” of Southeast Asia. Due to a low fertility rate, its population is aging faster than previously assumed. The dangerous implication for its economy is that Thailand’s working-age population will peak in 2017, rather than 2020, according to recent recalculations by the United Nations. So the labor force will start shrinking sooner than planned, falling 1.2% between now and 2023, according to BofA/ML projections. More on why that’s bad in a moment, but first, here’s the chart. As you can see, by about 2060, Thailand’s working-age (the orange line) population shrinkage will have become the biggest in Asia:

screen-shot-2013-08-23-at-9-23-41-am

(Data indicate working-age population, not total population.) Read more of this post

How to cut the cable cord and watch TV now

How to cut the cable cord and watch TV now

Fri, Aug 23 2013

By Mitch Lipka

(Reuters) – The monthly cable and Internet bill for the Adrienne Capollupo’s Roanoke, Virginia, family had reached $150 when they decided to cut the cord – the one that runs to the television set. Now Capollupo, 37, estimates that she saves $100 a month, and misses little of what she and her family of three care to watch. She and her husband, Chris Pohlad-Thomas, still get their “Downton Abbey” fix, though they wait a day after new episodes air before they can watch them. Daughter Sophia, 2, gets all the Sesame Street she can handle. Read more of this post

Wonder Material Ignites Scientific Gold Rush; Atom-Thin Graphene Beats Steel, Silicon; A Patent “Land Rush”

Updated August 23, 2013, 10:31 p.m. ET

Wonder Material Ignites Scientific Gold Rush

Atom-Thin Graphene Beats Steel, Silicon; A Patent “Land Rush”

GAUTAM NAIK

P1-BM838_GRAPHE_NS_20130823154803 P1-BM833_GRAPHE_G_20130823222901

Graphene is an extremely thin, strong and flexible material derived from the graphite found in everyday pencils. Scientists are racing to exploit those attributes for an array of new applications. WSJ’s Gautam Naik reports. Photo: Daniella Zalcman. CAMBRIDGE, England—A substance 200 times stronger than steel yet as thin as an atom has ignited a global scientific gold rush, sending companies and universities racing to understand, patent and profit from the skinnier, more glamorous cousin of ordinary pencil lead. Read more of this post

Web-Based Apps Pose Tricky Problem for Saudi Monitors

Web-Based Apps Pose Tricky Problem for Saudi Monitors

By Matt Smith on 11:31 am August 23, 2013.
Dubai. Saudi Arabia is seeking to tighten control over web-based applications that offer a freedom to communicate that is impossible for most Saudis in the real world, and may even seek to ban such apps altogether. Saudi Arabia remains a relatively closed society; gender mixing is restricted to a tight circle of relatives and family friends, and direct criticism of the ruling family or powerful conservative clergy is frowned upon. Morality police patrol the kingdom’s few public spaces such as shopping malls to enforce rigid social rules. Cyberspace presents considerably more complicated challenges than a shopping center, however, and Saudi authorities are alarmed by the unfettered contact that the Internet allows, including for activists who spread news and information not covered by state media. Read more of this post

Pandora Should Watch the Throne; Company’s Spending Plans Betray Fears Over Apple

Updated August 23, 2013, 4:43 p.m. ET

Pandora Should Watch the Throne

Company’s Spending Plans Betray Fears Over Apple

MIRIAM GOTTFRIED

BF-AF628_PANDOR_NS_20130823173303

Pandora Media P -12.90% may be girding for a fight. Or at least investors seem to be reading it that way. The Internet-radio company reported quarterly earnings and revenue late Thursday that beat expectations. Mobile revenue almost doubled year over year. And content costs as a share of revenue fell. Even so, Pandora’s shares tumbled 13% Friday. A big reason: The company tightened the range of its third-quarter and full-year projections due to increasing investment. Pandora now expects full-year earnings to be between zero and five cents a share, compared with an earlier projection of a loss of two cents up to a profit of eight cents. Read more of this post

Is this what Tim Cook has reduced Apple to? A company run by fund managers? Breach of RegFD?

Is Tim Cook Certifiably Inane?

BY Rocco Pendola|08/23/13 – 10:59 AM EDT

NEW YORK (TheStreet) — Somebody please make some sense out of this for me.

Carl Icahn Tweets again:

icahn

In total and complete seriousness, what kind of crap is that? On several levels. First, is this what Tim Cook has reduced Apple (AAPL_) to? A company run by fund managers? First David Einhorn and now Carl Icahn. All Apple can do is satisfy fat cats with dividends and buybacks. Why would Tim Cook even give these people the time of day? Has it come to the point where he needs them, their perceived power, their support and their cash more than they and the rest of the world needs Apple? Read more of this post

How Google Makes Money: 97% ($32.2B) coming from online ads

revenue

Google’s investment arm and TPG have led a $258m investment in Uber, the taxi-hailing app that has both delighted customers andenraged regulators around the world

August 23, 2013 11:58 pm

Google investment helps fuel Uber

By Tim Bradshaw and Richard Waters in San Francisco

Google’s investment arm and TPG, the private equity group, have led a $258m investment in Uber, the taxi-hailing app that has both delighted customers andenraged regulators around the world. The move values the three-year-old company at around $3.5bn, according to one person familiar with the deal, vaulting Uber into the ranks of the most valuable private tech companies alongside the likes of Airbnb, the travel company, Square, the mobile payments firm, and Spotify, the digital music service. Read more of this post

Foreign workers in Singapore rush to cash in weak rupee, rupiah

Foreign workers in Singapore rush to cash in weak rupee, rupiah

Amelia Tan, The Straits Times/ANN, Singapore | Business | Fri, August 23 2013, 1:48 PM

India and Indonesia nationals working in Singapore are scrambling to change money as their currencies languish at multi-year lows. Others are rushing to send funds home after the rupee and rupiah declined sharply over the past week. Remittance shops and money changers in areas such as Serangoon Road said that they had been serving up to double the usual number of customers from both countries since Monday. Read more of this post

Currency sell-off: Tragedy in three acts; Emerging market darlings have lost their lustre as investors ponder life without US quantitative easing

August 23, 2013 5:52 pm

Currency sell-off: Tragedy in three acts

By Victor Mallet

Emerging market darlings have lost their lustre as investors ponder life without US quantitative easing

Droopy rupee: India’s currency plumbed record lows this week as investors withdrew money from emerging markets

India, 1991. Thailand and east Asia, 1997. Russia, 1998. Lehman Brothers, 2008. The eurozone from 2009. And now, perhaps, India and the emerging markets all over again. Each financial crisis manifests itself in new places and different forms. Back in 2010, José Sócrates, who was struggling as Portugal’s prime minister to avert a humiliating international bailout, ruefully explained how he had just learned to use his mobile telephone for instant updates on European sovereign bond yields. It did him no good. Six months later he was gone and Portugal was asking for help from the International Monetary Fund. This year it is the turn of Indian ministers and central bankers to stare glumly at the screens of their BlackBerrys and iPhones, although their preoccupation is the rate of the rupee against the dollar. Read more of this post

Malaysia’s second-largest bank CIMB May Miss Break-Even Target on 2012 Purchase of RBS Investment Banking Units

CIMB May Miss Break-Even Target on RBS Banking Units Buy

CIMB Group Holdings Bhd. (CIMB), Malaysia’s second-largest bank by assets, may not break even as planned by the end of this year on its 2012 purchase of most of Royal Bank of Scotland Group Plc (RBS)’s Asia-Pacific investment banking assets. As stocks and currencies slide, “I don’t know” if the businesses will cover costs associated with the acquisition, Chief Executive Officer Nazir Razak said in an interview with Bloomberg TV’s Haslinda Amin yesterday. Read more of this post

Newspapers and radio still on growth path in Malaysia

Updated: Saturday August 24, 2013 MYT 9:09:10 AM

Newspapers and radio still on growth path

BY M. HAFIDZ MAHPAR AND EUGENE MAHALINGAM
STARBIZ@THESTAR.COM.MY

adspendnielsen240813

TRADITIONAL media, namely newspapers and radio, are still the advertisers’ preferred choice. They are the only media monitored by Nielsen − other than pay TV − to register advertising expenditure (adex) growth last month. According to Nielsen, newspaper and radio adex in July grew 4.1% and 12.4% respectively compared with a year earlier, while ad spend for pay TV surged 74.2%. The increase in share of voice for pay TV in 2013 was partly due to additional channels being monitored, according to Nielsen. Read more of this post

Netflix’s New ‘My Profile’ Feature Means Fewer Outrageously Bad Recommendations

Netflix’s New ‘My Profile’ Feature Means Fewer Outrageously Bad Recommendations

By Aaron Pressman | The Exchange – 14 hours ago

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Netflix (NFLX) subscribers get annoyed when their kids flip on the TV and see a suggested list of raunchy comedies alongside rows of more-appropriate fare. Or when the suggestions mix PBS’s pre-school cartoon “Caillou” with AMC’s drug-dealer saga “Breaking Bad.” But don’t worry – it drives Todd Yellin, Netflix’s vice president of product innovation, crazy, too. The mix-ups happen when Netflix’s automated algorithms attempt to analyze the viewing patterns of a whole household of people watching different kinds of shows through one account. Mom and Dad’s late-night “Scandal” binge gets thrown in with a tween’s “Cheetah Girls” fixation. The online programming service’s new profiles feature should help end the confusion, Yellin says. Starting this month, U.S. subscribers can set up different profiles for each viewer. Remember to hit the icon for the proper person before selecting a show, and the suggestions algorithms will suddenly seem much smarter. Read more of this post