Bamboo Innovator

China’s Economy Under Mounting Stress

China’s Economy Under Mounting Stress

WAYNE ARNOLD

March 26, 2014 12:16 p.m. ET

HONG KONG—Bad news is piling up for China’s economy, raising fears Beijing’s financial power may not be sufficient this time around to keep the economic engine ticking over and stave off market instability. Read more of this post

OSIM’s Brookstone, Specialty Retailer, Preparing For Bankruptcy Filing

Brookstone, Specialty Retailer, Preparing For Bankruptcy Filing

EMILY GLAZER

March 26, 2014 11:00 p.m. ET

Brookstone Inc., which sells consumer gadgets ranging from travel electronics to massage chairs, is preparing to file for bankruptcy protection as early as Sunday, with a plan in place to be bought by another specialty retailer, people familiar with the matter said. Read more of this post

The Anatomy Of Panic: How A Rumor Mutated Into A Three-Day Chinese Bank Run

The Anatomy Of Panic: How A Rumor Mutated Into A Three-Day Chinese Bank Run

Tyler Durden on 03/26/2014 11:57 -0400

Yesterday we showed the end result of what happens in a China, in which bankruptcy and default are suddenly all too real outcomes for the country’s hundreds of millions of depositors, when the risk of losing all of one’s money held in an insolvent bank becomes a tangible possibility in “What A Bank Run In China Looks Like: Hundreds Rush To Banks Following Solvency Rumors.” Today, we look in detail at all the discrete elements that culminated with hundreds of Chinese residents lining up in front of a bank in Yancheng and rushing to withdraw their money only to find their money not available (at least until the regional government was forced to step in with a bail out to avoid an even greater panic).Why is this a useful exercise? Because since we will certainly see many more example of it in the near future, it pays to be prepared. Or least it certainly prevents one from losing all of their money… Read more of this post

Debt crisis nears tipping point: “Creditors have their foot on the throat of the global economy”

WEDNESDAY, MAR 19, 2014 08:33 PM MPST

Debt crisis nears tipping point: “Creditors have their foot on the throat of the global economy”

An entire generation of students is sinking under the weight of debt, while banks and schools make off like bandit

HANNAH GOLD, ALTERNET

This article originally appeared on AlterNet.

Back in September, the U.S. Department Education announced its two-year and three-year federal student loan default rates. The rates were 10 percent and 14.7 percent respectively, both record highs. At the time the report was released, Secretary of Education Arne Duncan called these numbers “troubling.” Read more of this post

Citi Tumbles Below $5/Share On A Split-Adjusted Basis After Failing Another Fed Stress Test

Citi Tumbles Below $5/Share On A Split-Adjusted Basis After Failing Another Fed Stress Test

Tyler Durden on 03/26/2014 16:17 -0400

Another year, another failure by Citigroup to i) pass the Fed’s stress test and ii) be able to stop investing cash in such idiotic fundamental concepts as CapEx, and instead reward activist shareholders with increased dividends and buybacks. As the WSJ reports, Citigroup “failed to get Federal Reserve approval to reward investors with dividends and stock buybacks, a significant blow to Chief Executive Michael Corbat’s effort to bolster the bank’s reputation following a 2008 government rescue.” Hardly surprising for a bank which effectively was wiped out in the crisis and which only survived thanks to the Fed-backed crammed-up, spinoff of billions of toxic assets into a bank bank, however certainly surprising for a bank that is supposed to be “fixed” five years into a “recovery.” What’s worse, the stock is now trading below the infamous $5 level on a pre-split adjustment level – the same split that was supposed to at least optically, give the impression that things at Citi are ok. Turns out optics is only half the answer. Read more of this post

China’s Credit Pipeline Slams Shut: Companies Scramble For The Last Drops Of Liquidity

China’s Credit Pipeline Slams Shut: Companies Scramble For The Last Drops Of Liquidity

Tyler Durden on 03/26/2014 21:26 -0400

One of our favorite charts summarizing perfectly the Chinese credit bubble, better than any other, is the following which compares bank asset (i.e., loan) creation in China vs the US.

Read more of this post

Can China Turn Garbage Into Gold? Why did Beijing Capital pay almost $1 billion for New Zealand’s largest waste-management company?

Can China Turn Garbage Into Gold?

March 17, 2014

Gordon Orr

Chairman, Asia at McKinsey & Company

Beijing Capital, one of the largest diversified conglomerates owned by the Beijing city government, bought New Zealand’s largest waste management company this month for almost US$1 billion. This follows on Hong Kong-based Cheung Kong buying New Zealand’s second largest waste management company for US$400 million. Read more of this post

Mind the Non-GAAP: Nontraditional financial metrics can shed valuable light on a company’s operations – or obscure its true condition

March 26, 2014

CFO Magazine

Mind the Non-GAAP

Nontraditional financial metrics can shed valuable light on a company’s operations – or obscure its true condition.

Marielle Segarra

Normalized adjusted EBITDA less capex. Adjusted consolidated segment operating income. Adjusted EBITDA (as adjusted). Even enthusiasts of non-GAAP metrics have to admit that such measures often sound just a wee bit ridiculous. Read more of this post

Why Companies Suffer Large, Unexpected Credit Losses; The risk of businesses defaulting on their obligations may rise in the coming years

March 25, 2014

CFO.com | US

Why Companies Suffer Large, Unexpected Credit Losses

The risk of businesses defaulting on their obligations may rise in the coming years.

Marc Wagman

For companies that sell business-to-business products and services, many things can contribute to a company incurring a loss from a bad debt. The most important factor is probably the quality of the organization’s finance and credit management process. But even the best-managed corporate finance and credit departments experience large, unexpected and painful credit losses. The effect of such a loss on the company’s stakeholders can be devastating. Lenders, vendors, customers and even employees can also be affected, especially when a large, key customer defaults on its obligations. Read more of this post

Why Employee Turnover Hits the Bottom Line; Employees leaving an organization can influence financial performance, and some of the reasons may not be obvious

March 26, 2014

CFO.com | US

Why Employee Turnover Hits the Bottom Line

Employees leaving an organization can influence financial performance, and some of the reasons may not be obvious. Read more of this post

A cautionary tale of using red flags?

A cautionary tale of using red flags

Wednesday, Mar 26, 2014

Goh Eng Yeow

The Straits Times

SINGAPORE – First, the Singapore Exchange (SGX) was accused of doing too little. Now, it is accused of doing too much. Read more of this post

Myanmar army role to be ‘gradually’ decreased: President

Myanmar army role to be ‘gradually’ decreased: President

Wednesday, March 26, 2014 – 19:01

AFP

NAYPYIDAW, Myanmar, March 26, 2014 (AFP) – Myanmar’s leader on Wednesday said the role of the powerful military should be reduced slowly in the transition to democracy amid opposition campaigns to ease the army’s grip on political power. Read more of this post

Is Olam price spike due to market misconduct?

Is Olam price spike due to market misconduct?

First Published in Business Times on March 19, 2014

Letter to the Editor

Mak Yuen Teen

THE commentary, “Why no SGX query on Olam price surge? (BT, March 15), mentions the perception that SGX may be less willing to query government-linked companies (GLCs). Read more of this post

SGX should be more proactive against potential insider trading

SGX should be more proactive against potential insider trading

First Published in Business Times on March 26, 2014

Mak Yuen Teen

LAST week was not a good week for the regulatory side of SGX. On the one hand, it was criticised for not querying Olam, while on the other, it was told that it was too easy on the trigger for “Trade with Caution” (TWC) alerts. Read more of this post

South Korean prosecutors Wednesday overturned a controversial landmark ruling allowing a convicted property mogul to pay off a multi-million dollar fine with 49 days of prison labour

S. Korean tycoon to pay fine after jail work overruled

Wednesday, March 26, 2014 – 20:32

AFP

SEOUL – South Korean prosecutors Wednesday overturned a controversial landmark ruling allowing a convicted property mogul to pay off a multi-million dollar fine with 49 days of prison labour, a report said. Read more of this post

Indonesia Election 2014: Technocrat Gita Wirjawan says he’s seeking change; Politics is a different ball game altogether for Mr Gita, who only joined the Cabinet in late 2011, and whose rise on the national stage has been meteoric

Indonesia Election 2014: Technocrat says he’s seeking change

Thursday, March 27, 2014 – 03:25

Wahyudi Soeriaatmadja

The Straits Times

JAKARTA – At a time when many thought striking a global trade deal was impossible last December, Bali meeting chairman and then trade minister Gita Wirjawan showed sceptics it could be done by sealing an agreement for the World Trade Organisation. Read more of this post