India’s Millionaire Tribe Set to Soar

May 29, 2014

India’s Millionaire Tribe Set to Soar

SAPTARISHI DUTTA

While India is home to some of the poorest communities in the world it is also home to thousands of new dollar millionaires.

The number of people in the south Asian nation worth at least seven figures grew to 248,000 last year, according to a report this week by WealthInsight, a company which tracks the world’s rich. That is up from 193,000 millionaires in 2009, the report said. Read more of this post

Thailand’s Generals in a Corner; Rule by fear risks repeating the darkest hours of Thai history

Thailand’s Generals in a Corner

Rule by fear risks repeating the darkest hours of Thai history.

May 29, 2014 12:39 p.m. ET

The military coup in Bangkok is getting nastier by the day, as the army continues preemptively to lock up academics, journalists and opposition politicians. At least 250 people have been detained since last week, although perhaps half have since been released and spokesmen say the remainder are being treated well. Read more of this post

Bonjour, world: French technology, innovation set for global invasion

Bonjour, world: French technology, innovation set for global invasion

SINGAPORE — On the western suburban street of Vaucresson, around 20km from Champs-Elysees in Paris, a silver all-electric hatchback nips around quietly as it climbs smoothly to its top speed of 130kmh before finally coming to rest at a designated kerbside car-sharing kiosk, waiting to be taken for a spin by another driver.

BY WONG WEI HAN –

MAY 30

SINGAPORE — On the western suburban street of Vaucresson, around 20km from Champs-Elysees in Paris, a silver all-electric hatchback nips around quietly as it climbs smoothly to its top speed of 130kmh before finally coming to rest at a designated kerbside car-sharing kiosk, waiting to be taken for a spin by another driver. Read more of this post

America must always lead on world stage, because no one else will

America must always lead on world stage, because no one else will

President Barack Obama articulated his vision of America’s role in the world on Wednesday, telling graduating cadets at the United States Military Academy that the nation they were being called to serve would seek to avoid military misadventures abroad, while it confronts a new set of terrorist threats from the Middle East to Africa. Below is an excerpt of his commencement speech at West Point.

Read more of this post

Infosys Shock Spurs 9,400% Gain in Near-Worthless Options

Infosys Shock Spurs 9,400% Gain in Near-Worthless Options

To get a sense how surprised investors are by the departure of Infosys (INFO) Ltd. co-president B.G. Srinivas, take a look at the options market.

Yesterday’s most-widely held put options on Infosys, those that expire today and become profitable if shares fall below 3,100 rupees, surged 17-fold at the 3:30 p.m. close in Mumbai. Bearish contracts with a strike of 3,000, which tumbled 88 percent yesterday to just 0.8 rupee, rallied as much as 9,400 percent in Mumbai. The stock sank 6.5 percent to 2,924.5 rupees.

Read more of this post

500 Largest Hedge Fund Managers Control 90% Of AUM

500 Largest Hedge Fund Managers Control 90% Of AUM

by VW StaffMay 29, 2014, 10:18 am

Preqin Research highlights the 505 hedge fund managers with more than $1bn in AUM currently manage $2.39tn of the industry’s $2.66tn total assets, but account for just 11% of active firms.

The “$1bn Club” of the largest hedge fund managers represents just under 11% of the 4,621 active managers worldwide. New York is the undoubted home of this “$1bn Club”, with 174 of these firms headquartered there representing a total of $938bn in AUM. The May 2014 edition of Preqin’s Hedge Fund Spotlight also shows the importance of investors allocating at least $1bn to hedge funds. There are currently 203 institutional investors in this “$1bn Club”, an increase of 46 from a similar study in May 2013, and these firms represent approximately $650bn in terms of combined capital allocated to hedge funds. Read more of this post

The Perils of Silos in Risk Management; In extreme cases, silos can become miniature ecosystems, each with its own risk culture and practices

May 29, 2014

CFO.com | US

The Perils of Silos in Risk Management

In extreme cases, silos can become miniature ecosystems, each with its own risk culture and practices.

John Bugalla and Kristina Narvaez

Silos, or autonomous units, can exist in most organizations. It’s no surprise that risk management can be divided into “siloed” functions, and it’s commonly done. Among their advantages: Silos can enable risk management specialization by business unit. For example, in a siloed structure the finance department can manage credit, interest, market and liquidity risks, while the information technology department can handle security and privacy perils. Such specialization is an essential component of developing a rich variety of risk management expertise within the organization. Read more of this post

Alibaba Fun Facts: Rejection Turned Into Success

Alibaba Fun Facts: Rejection Turned Into Success

by Michelle JonesMay 29, 2014, 12:02 pm

A firm calling itself a “reverse Alibaba” shares some fun facts about Alibaba’s rough start

Alibaba’s initial public offering is one of the most highly anticipated ones this year, but sentiment surrounding the company wasn’t always so high. In fact, 40 different venture capital firms in Silicon Valley rejected the Chinese online retailer, according to Gloglou, a company which says it “provides ‘reverse Alibaba’ services” designed to help companies market their products and services to China. Read more of this post

New revenue guidance: Six things to consider

New revenue guidance: Six things to consider

BY KEN TYSIAC

MAY 28, 2014

The release Wednesday of a long-awaited new revenue recognition standard had financial statement preparers settling in to read hundreds of pages of text, as standard setters celebrated the achievement of producing that text. Read more of this post

The Disclose or Abstain Incentive to Issue Management Guidance

The Disclose or Abstain Incentive to Issue Management Guidance

Edward X. Li 

City University of New York (CUNY) – Stan Ross Department of Accountancy

Charles E. Wasley 

University of Rochester – Simon Business School

Jerold L. Zimmerman 

University of Rochester – Simon Business School
May 16, 2014
Simon School Working Paper No. FR 14-10

Abstract: 
Prior research generally argues that managers issue management earnings forecasts (MFs) to secure capital market benefits (i.e., reduce information asymmetry between managers and investors to lower a firm’s cost of capital), to reduce the firm’s litigation costs, or to allow managers to trade opportunistically in their firm’s stock. We discuss and test whether some MFs are issued because managers have an affirmative duty under Rule 10b-5 of the Securities Acts to disclose all material information or to abstain from trading in their firm’s securities. Four sets of tests support our conjecture that managers issue some MFs to comply with their duty under Rule 10b-5. Since prior MF studies have typically ignored the alternative explanation that managers issue some MFs to comply with disclose or abstain obligations the inferences drawn from such studies about managerial incentives to issue MFs likely overstate the economic significance of the variables used to capture capital market or opportunistic incentives for MF disclosure.

Looking for Risk in Words: A Narrative Approach to Measuring the Pricing Implications of Finance Constraints

Looking for Risk in Words: A Narrative Approach to Measuring the Pricing Implications of Finance Constraints

Matthias M. M. Buehlmaier 

The University of Hong Kong

Toni M. Whited 

University of Rochester – Simon Business School; National Bureau of Economic Research
March 15, 2014
Simon School Working Paper No. FR 14-11

Abstract: 
We construct a novel measure of financial constraints using textual analysis and investigate its impact on stock returns. Unlike other financial constraints measures, ours is consistent with firm characteristics of constrained firms. We find that constrained firms’ returns move together. The variation of a financial constraints factor cannot be explained by the Fama-French and momentum factors, earning an annualized risk-adjusted excess return of 7%. A stock trading strategy based on financial constraints is most profitable for large and liquid stocks, and when the financial constraints are measured by access to debt markets instead of equity markets.

 

Almost half EU firms in China say “golden age” is over

Almost half EU firms in China say “golden age” is over

Thursday, May 29, 2014 – 18:06

Reuters

BEIJING – Foreign firms in China face a “sobering” business climate, a European lobby said on Thursday, as concerns over weaker profits and government support for domestic competitors have almost half EU companies saying the”golden age” is over. Read more of this post

Infosys running out of time to name new CEO as president quits

Infosys running out of time to name new CEO as president quits

4:30am EDT

By Nivedita Bhattacharjee and Sumeet Chatterjee

MUMBAI (Reuters) – India’s second largest IT services exporter Infosys Ltd is under pressure to bring in a new chief executive soon to check an exodus of junior staff and reassure investors after a slew of departures at the top. Read more of this post

Cao Dewang, chairman of Fuyao Glass; Herding oxen as a boy gave the tycoon the drive to succeed

THE MONDAY INTERVIEW

May 25, 2014 2:05 pm

Cao Dewang, chairman of Fuyao Glass

By Demetri Sevastopulo in Hong Kong

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Reflective: Cao Dewang’s company supplies glass to carmakers from Toyota and VW to BMW and Bentley

Cao Dewang became the biggest Chinese investor in Ohio this year when Fuyao Glass, the car glass manufacturer that he founded in 1987, spent $200m buying an old General Motors factory in Dayton. Read more of this post

The Thais must stand up to an overmighty military; For 60 years army rule has been the rule not the exception, writes Benjamin Zawacki

May 25, 2014 4:59 pm

The Thais must stand up to an overmighty military

By Benjamin Zawacki

For 60 years army rule has been the rule not the exception, writes Benjamin Zawacki

In the years between Thailand’s last coup in 2006 and the one staged last week, conventional wisdom held that the army had learnt too much to repeat itself. The economy took a rare, appreciable hit; supporters of deposed prime minister Thaksin Shinawatra mobilised and resisted; the US invoked automatic military and economic sanctions; and Thai leaders were embarrassed at regional and international gatherings. Read more of this post

For China’s Communist Party, Stability As Usual Isn’t Enough

May 26, 2014

For China’s Communist Party, Stability As Usual Isn’t Enough

By Russell Leigh Moses

Recent public protests in Hangzhou over plans for a large waste incinerator there show once again that some Chinese citizens are raising questions about the quality of government they’re getting.

And according to a critical commentary on Thursday in the Communist Party’s mouthpiece People’s Daily, the present policy of maintaining social stability at all costs isn’t providing the right answers.  Instead, it’s another wake-up call to cadres to connect with the masses to make better policy. Read more of this post

Decades-Long Reign for Ambassador Comes to an End; Hindustan Motors’ Aging Sedan, A Symbol of India’s Ascent, Rides Into the Sunset

Decades-Long Reign for Ambassador Comes to an End

Hindustan Motors’ Aging Sedan, A Symbol of India’s Ascent, Rides Into the Sunset

SANTANU CHOUDHURY

May 25, 2014 2:50 p.m. ET

NEW DELHI—The Hindustan Motors 500500.BY +19.82% Ambassador—the frozen-in-time four-door that for more than a half-century defined India as sticking to its own automotive road map—has ceased production. Read more of this post

Can Confucianism save the world?

Can Confucianism save the world?

Sunday, May 25, 2014 – 03:00

Joseph Chan

The Straits Times

Confucianism needs saving because it is a very old tradition of thought that can no longer speak effectively to the modern world without systematic reconstruction.

Confucianism also needs saving because of the chronic gap between its political ideals and the reality of societal circumstances. But to save Confucianism and to let it save the world, we must first learn from its profound insights – and its profound failures. Read more of this post

Forget apps, old-school mobiles ring in a comeback

Forget apps, old-school mobiles ring in a comeback

Sunday, May 25, 2014 – 12:34

AFP

PARIS – They fit in a pocket, have batteries that last all week and are almost indestructible: old-school Nokias, Ericssons and Motorolas are making a comeback as consumers tired of fragile and overly-wired smartphones go retro.

Forget apps, video calls and smiley faces, handsets like the Nokia 3310 or the Motorola StarTec 130 allows just basic text messaging and phone calls. Read more of this post

The family that runs home- grown Singapore coffee manufacturer Boncafe International is selling the business to one of the world’s top coffee firms Massimo Zanetti/Segafredo for US$85 million (S$106 million)

Family selling Boncafe to Italian firm

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Sunday, May 25, 2014

Rachael Boon

The Straits Times

The family that runs home- grown coffee manufacturer Boncafe International is selling the business to one of the world’s top coffee firms for US$85 million (S$106 million). Read more of this post

A bitter pill as China crackdowns squeeze pharma margins

A bitter pill as China crackdowns squeeze pharma margins

Sat, May 24 2014

By Adam Jourdan

SHANGHAI (Reuters) – A crackdown on corruption and pricing in China’s fast-growing pharmaceutical market has squeezed profits and margins, raising a red flag to global Big Pharma that the days of easy growth in the country may be over. Read more of this post

Thai military tightens grip, focuses on economic woes

Thai military tightens grip, focuses on economic woes

12:53am EDT

By Khettiya Jittapong and Paul Mooney

BANGKOK (Reuters) – Thailand’s military tightened its grip on power on Sunday as it moved to douse smoldering protests fuelled by social media and rally commercial agencies and business to revitalize the country’s battered economy. Read more of this post

The Mysterious Origins Of The Swastika

The Mysterious Origins Of The Swastika

WENDY CHRISTENSEN PHD, THE SOCIETY PAGES SCIENCE  MAY. 24, 2014, 8:01 PM

I found this 1917 advertisement for swastika jewelry while browsing through the NY Public Library Digital Gallery. The text reads in part:

To the wearer of swastika will come from the four winds of heaven good luck, long life and prosperity. The swastika is the oldest cross, and the oldest symbol in the world. Of unknown origin, in frequent use in the prehistoric items, it historically first appeared on coins as early as the year 315 B.C.

As this suggests, while the symbol of the swastika is most frequently associated with Hitler and Nazis during World War II, and is still used by neo-Nazi groups, the symbol itself has a much longer history. From wikipedia:

Archaeological evidence of swastika-shaped ornaments dates from the Neolithic period. An ancient symbol, it occurs mainly in the cultures that are in modern day India and the surrounding area, sometimes as a geometrical motif and sometimes as a religious symbol. It was long widely used in major world religions such as Hinduism, Buddhism and Jainism.

Before it was co-opted by the Nazis, the swastika decorated all kinds of things. Uni Watch has tons of examples. Here it is on a Finnish military plane:

Boy Scout badge:

A women’s hockey team called the Swastikas from Edmonton (from 1916):

Another hockey team:In the comments, Felicity pointed to this example:

She writes:

My mom is a quilter and collects antique quilts (when she can afford them). She says that while in general, antique quilts and quilt-tops have gone up a great deal in price over the decades, there’s still one sort you can pick up for a song — swastika quilts. Read more of this post

As Publishers Fight Amazon, Books Vanish

As Publishers Fight Amazon, Books Vanish

By DAVID STREITFELD and MELISSA EDDY

MAY 23, 2014 7:24 AM 560 Comments

Amazon’s power over the publishing and bookselling industries is unrivaled in the modern era. Now it has started wielding its might in a more brazen way than ever before. Read more of this post

The Ripple Effects of Rising Student Debt

The Ripple Effects of Rising Student Debt

By PHYLLIS KORKKIMAY 24, 2014

image001-2 Read more of this post

Mapping Asian views of power, prosperity, institutions and identity

Mapping Asian views of power, prosperity, institutions and identity

Bonnie Glaser

2014-05-24

image001-1

Respondents in the United States and Japan felt strongest about the negative effects of a coercive cross-strait unification. (China Times) Read more of this post

Don’t Believe Anyone Who Tells You Learning To Code Is Easy

Don’t Believe Anyone Who Tells You Learning To Code Is Easy

Posted 35 minutes ago by Kate Ray (@kraykray)

Editor’s note: Kate Ray is the technical cofounder of scroll kit, a visual webpage creation tool that was recently acquired byWordPress.com

One of the most dangerous things I’ve seen happen to people who are just starting to code is being told that it’s easy.

Here’s what your brain does: Read more of this post

5 reasons managers trade too much

5 reasons managers trade too much

Peter Hodson | May 23, 2014 5:40 PM ET
We all know that management and other fees are some of the main reasons mutual funds constantly underperform, but another reason that gets far too little discussion is that managers trade way too much. Read more of this post

Why Canada’s whistleblower hotlines are staying silent; It doesn’t pay to be a whistleblower in Canada’s corporate world where there are no financial incentives for coming forward and even a risk of losing your job

Why Canada’s whistleblower hotlines are staying silent

Barbara Shecter | May 24, 2014 7:30 AM ET

It doesn’t pay to be a whistleblower in Canada’s corporate world. Not only are there absolutely no financial incentives in place to reward people for coming forward with incriminating information, but there is also a very real possibility those who shed light on wrongdoing will have to find another job. Read more of this post

Shopping China’s Beauty Aisle; The country’s Internet and gaming stocks have lost their momentum, but cosmetics remains a growth business. Some of the most popular beauty aids are from Korea.

Shopping China’s Beauty Aisle

The country’s Internet and gaming stocks have lost their momentum, but cosmetics remains a growth business. Some of the most popular beauty aids are from Korea.

SHULI REN

May 24, 2014 1:20 a.m. ET

China’s economy is in an undeniable slowdown, and last year’s highflying Internet and gaming stocks have lost momentum. So where can investors turn? Read more of this post