April 2010

Triple Point Names Chief Customer Officers

April 28, 2010

Supports Exponential Growth of Customer Base Across All Regions

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Privia Health Names Dave Rothenberg President

April 28, 2010

Industry Veteran Joins Next Generation “Membership Medicine” Company

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Commerce National Bank Announces the Appointment of Nancy Russell, Vice President, SBA Business Development Officer

April 28, 2010

NEWPORT BEACH, CA–(Marketwire – April 28, 2010) –  Commerce National Bank ( OTCBB : CNBF ), a community business bank now in its seventh year of operation, is pleased to announce that Nancy Russell has joined Commerce National Bank as Vice President, SBA Business Development Officer.

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dataguise Hires Venkat Subramanian as Vice President of Engineering

April 28, 2010

With More Than 25 Years of Experience in the Software and Database Technology Industry, Subramanian to Manage Product Development Efforts for Leading Database Security Provider

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New England Clean Energy Council Appoints Peter Rothstein to President

April 28, 2010

Venture Capitalist and Entrepreneur Succeeds Nick d’Arbeloff as Council Begins Next Chapter in the Region’s Clean Energy Development

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Ambrilia Biopharma Provides Bi-Weekly Update on its Status

April 28, 2010

ATTENTION BUSINESS/FINANCIAL/HEALTH EDITORS

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Ambrilia Biopharma dépose son rapport bi-hebdomadaire sur la situation

April 28, 2010

ATTENTION DIRECTEURS DES RUBRIQUES AFFAIRES/FINANCE/SANTE

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Republicans Block Finance Bill Debate Again, Cite Benefits of Saying `No’

April 28, 2010

By Lisa Lerer April 28 (Bloomberg) — Senate Republicans unanimously voted again to block debate over legislation rewriting the rules of U.S. finance, embracing a strategy that party lawmakers argue will yield political and policy gains. Democrats say yesterday’s vote, coming as Goldman Sachs Group Inc. executives were being questioned by a Senate panel, is a dangerous gamble for Republicans, given public anger over Wall Street and support for new regulations. “This is political dynamite, and I think Republicans have lit the fuse,” Senator Robert Menendez , a New Jersey Democrat who heads the Democratic Senatorial Campaign Committee, told reporters. Senate Republican leaders are pressing their 41 party members to stay united against the Democratic plan, saying that will give them maximum leverage to change key provisions in a bill calling for the biggest overhaul of financial rules since the 1930s. “With 41 sticking together saying we need to continue the bipartisan negotiations, that is the leverage we have,” Senator John Cornyn , a Texas Republican, told reporters. “When we lose that we lose leverage.” That argument worked yesterday for the second time in two days, as no Republican broke ranks to join Democrats in the 57- 41 vote preventing the floor debate from beginning. Sixty votes are needed to begin consideration of the bill. Senate Majority Leader Harry Reid , who is pressing on with the test ballots in a bid to show that Republicans are standing in the way of an overhaul, vowed “there will be more votes this week.” A third vote may take place today. No Amendments The bill would strengthen rules governing the financial services industry to try to prevent a repeat of the $700 billion in taxpayer-funded aid Congress approved in 2008 to firms including Citigroup Inc. and Bank of America Corp. Republican leaders say it isn’t likely they’ll be allowed to offer amendments on the floor, though Reid promised they could. That makes blocking the bill to continue the talks their best opportunity to modify the legislation, they say. Senate Banking Committee Chairman Christopher Dodd , the Connecticut Democrat who wrote the bill, is negotiating toward a compromise with Alabama Senator Richard Shelby , the panel’s top Republican. After yesterday’s vote, Dodd said he and Shelby made progress on one sticking point — how to create a mechanism for unwinding failing financial firms. He and Shelby were down to “workable issues” on the provision, Dodd told reporters after meeting with Shelby. Goldman Hearing Among other changes, Republicans want to limit the regulation of derivatives and curtail the scope of a new consumer protection bureau. Opposing the bill has become more troublesome in the wake of the Securities and Exchange Commission’s suit against Goldman Sachs alleging the firm defrauded investors when selling a debt instrument tied to mortgages. Goldman Sachs denied wrongdoing. Members of both parties yesterday questioned Lloyd Blankfein , chairman and chief executive officer of the New York- based firm, and other executives in a Senate hearing that underlined the pressure lawmakers face from voters to rein in Wall Street. “It’s hard to find a group who does take a positive view of banks and financial institutions at this point,” said Carroll Doherty , associate director of the Washington-based Pew Research Center for the People & the Press. “Even the Tea Party is just as negative about these institutions as everyone else.” No More Bailouts Republicans may have gained ground on one of their main objections to the bill, which they charge would set up a permanent bailout of Wall Street banks. Dodd said he plans to support an amendment by Senator Barbara Boxer , a California Democrat, which would ban the government from using any taxpayer money for bailouts. Negotiators remain farthest apart on the consumer financial protection bureau, the financial watchdog that would be housed in the Federal Reserve, Shelby said yesterday. Republicans would like to limit the scope of the agency, arguing that it could hurt small businesses. Senate Republican Leader Mitch McConnell called the legislation a “dramatic overreach” into “every nook and cranny of American business.” Republican strategists say that characterization feeds into a major campaign narrative for party candidates — that Democrats are spending too much money on sweeping legislative proposals. ‘Wasteful Spending’ Ninety percent of voters said they were concerned with government spending, in a bipartisan Battleground poll conducted earlier this month by Lake Research Partners , a Democratic polling firm, and the Tarrance Group , a Republican firm. Almost half those surveyed said they thought Republicans would do a better job controlling the “wasteful spending” than congressional Democrats or the Obama administration. “Anytime we have a focus on high spending you see an issue that Republicans have a two-to-one lead,” said Ed Goeas, the CEO of Tarrance Group . Republican lawmakers also say Democrats risk a political backlash by forcing Republicans to block the legislation. “The American people are fed up with dysfunction,” Senator George Voinovich , of Ohio, told reporters yesterday. The tactic, he said, “adds to people’s skepticism and lack of respect for what we are doing here.” Pollsters say voters are likely to place blame on Congress — rather than either party — if the legislation fails, Doherty said. “What’s striking is how there’s no shortage of negative views of the government in a variety of different dimensions,” said Doherty. To contact the reporter on this story: Lisa Lerer in Washington at llerer@bloomberg.net

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Stocks Fall, Asia Default Swaps Climb on Greece, Portugal Debt

April 28, 2010

By Patrick Chu and Shani Raja April 28 (Bloomberg) — Stocks slid for a second day and the cost to insure against bond losses rose after credit-rating downgrades of Greece and Portugal fueled concern about sovereign defaults. Greek two-year note yields soared to 21.4 percent. The euro strengthened from a one-year low against the dollar. The MSCI Asia Pacific Index declined 1.6 percent to 125.20 at 4 p.m. in Tokyo after the Standard & Poor’s 500 Index lost 2.3 percent, the most since February. The Stoxx Euro 600 fell 0.5 percent. The cost of protecting Asian bonds from default jumped to almost a two-month high. The euro traded at $1.3187 from $1.3145 yesterday. S&P 500 futures were little changed. Stocks, commodities and the euro tumbled, while Treasuries rallied yesterday when S&P lowered Greece’s debt rating to junk and Portugal by two steps. European Central Bank President Jean- Claude Trichet and International Monetary Fund Director Dominique Strauss-Kahn will meet German politicians in Berlin today to promote a financial rescue plan. The euro rebounded on speculation that the IMF will provide more aid to Greece. “People are panicking about the contagion effect,” said Simon Bonouvrie , who helps manage $1.7 billion at Sydney-based Platypus Asset Management. “It’s an overreaction but the risk aversion will remain until these problems are resolved.” The IMF may increase its share of financial aid to Greece by 10 billion euros ($13.2 billion) from the current 15 billion euros, the Financial Times reported today, citing unidentified bankers and officials in Washington. Greece, Portugal Credit-default swaps on European sovereign debt surged to records. Contracts tied to Greek government bonds climbed 111 basis points to 821 and Portugal rose 54 basis points to 365, according to CMA DataVision. Yields on 10-year Treasuries tumbled 12 basis points to 3.68 percent, the biggest decline since Dec. 17, as investors sought the relative safety of U.S. government debt. All 10 industry groups fell in the MSCI Asia Pacific Index, while the MSCI World Index lost 0.6 percent, extending yesterday’s 2.1 percent decline. Japan’s Nikkei 225 Stock Average slumped 2.6 percent and Hong Kong’s Hang Seng Index sank 1.4 percent. Finance companies were the biggest drag on the Asia index, with bank stocks falling as Goldman Sachs Group Inc. executives were grilled by a U.S. Senate panel. HSBC Holdings Plc lost 2.3 percent to HK$79.55 in Hong Kong. Mitsubishi UFJ Financial Group Inc. dropped 2 percent to 499 yen. Exporters Lose Japanese exporters fell as a stronger yen threatened overseas income. The yen appreciated to 122.94 against the euro today from 125.62 at the 3 p.m. close of stock trading in Tokyo yesterday. The yen gained to 93.29 against the dollar from 93.94. Canon Inc. , the camera maker that counts Europe as its largest market, slumped 2.4 percent to 4,280 yen. Toyota Motor Corp. , which gets 10 percent of its revenue in Europe, fell 1.6 percent to 3,635 yen. Billabong International Ltd. , an Australian surfwear maker that makes 23 percent of its revenue in Europe, sank 3.4 percent to A$11.40. Material producers in the MSCI Asia Pacific Index sank 1.6 percent after the London Metal Exchange Index of six industrial metals tumbled 4.6 percent, the most since June 22. Crude oil dropped to $82.44 a barrel yesterday, the lowest settlement price since April 19. Commodity Producers BHP Billiton Ltd. , the world’s No. 1 mining company, fell 2.2 percent to A$41.08, while Rio Tinto Group, the world’s third-largest mining company, declined 2.7 percent to A$74.32. Commodities trader Mitsubishi Corp. 1.7 percent to 2,262 yen. The Markit iTraxx Asia index of credit-default swaps on 50 investment-grade borrowers outside Japan jumped 9 basis points to 109.5 basis points in Singapore, its highest since March 1, according to Deutsche Bank AG and CMA DataVision. The Markit iTraxx Australia index rose 9 basis points to 97, the highest since Feb. 25, according to Nomura Holdings Inc. and CMA. The Markit iTraxx Japan index jumped 8.5 basis points to 106.5, according to CMA. The jump was the biggest since Feb. 5 and puts the index on track for its highest close since April 1, according to CMA. The euro fell to the lowest against the dollar since April 29, 2009 in New York yesterday, and traded at 123.01 yen from 122.88 yen and touched 122.37 yen, the weakest since March 25. German policy makers said Greece must outline further steps to cut its budget deficit before they will endorse the release of funds from a 45 billion euro ($60 billion) rescue package. ‘Signs of Contagion’ “With sovereign problems showing signs of contagion, the euro is losing its allure as an alternative currency to the dollar,” said Akio Yoshino , chief economist in Tokyo at Societe Generale Asset Management (Japan) Inc. “The currency may test the $1.30 mark sooner rather than later.” Yields on 10-year Portuguese bonds jumped 48 basis points to 5.69 percent and Irish 10-year yields surged 19 basis points to 5.10 percent. Japan’s bonds advanced, pushing 10-year yields to the lowest level in four months. The yield fell 2.5 basis points to 1.28 percent. S&P lowered Greece’s credit rating to BB+ from BBB+ and warned that bondholders could recover as little as 30 percent of their initial investment if the country restructures its debt. The downgrade marked the first time a euro member has lost its investment grade rating since the currency’s 1999 debut. S&P also reduced Portugal by two steps to A- from A+. To contact the reporters for this story: Patrick Chu in Tokyo at pachu@bloomberg.net ; Shani Raja in Sydney at Sraja4Wbloomberg.net.

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Goldman Armed Salespeople to Dump Bonds, E-mails Show

April 28, 2010

By Joshua Gallu and Jesse Westbrook April 28 (Bloomberg) — Goldman Sachs Group Inc. , seeking to reduce assets tied to the declining U.S. housing market, urged its sales force in 2006 and 2007 to sell those products to clients, newly disclosed internal e-mails show. The e-mails, including communications from Chief Executive Officer Lloyd Blankfein , show that employees discussed how to “arm” salespeople to shed bonds the firm found too risky to hold. The e-mails were released yesterday by Senator Carl Levin in connection with a hearing where current and former managers testified about the firm’s role in the financial crisis. Levin, the Michigan Democrat who heads the Senate’s Permanent Subcommittee on Investigations , grilled the executives about the firm’s bets against the housing market and its disclosure to clients. In one of the e-mails, Blankfein asked whether employees were doing enough to sell bonds backed by home loans including subprime mortgages. “Could/should we have cleaned up these books before and are we doing enough right now to sell off cats and dogs in other books throughout the division,” Blankfein, 55, wrote in an e- mail dated Feb. 11, 2007. Questioned about the e-mail at yesterday’s hearing, Blankfein told senators that his comment didn’t represent an opinion of the bonds. “When I use the expression ‘cats and dogs’ I mean miscellaneous stuff,” he said. “This is part of my normal point about aged inventory. Part of the discipline of our business is to manage risk and sell inventory.” Clients’ Questions The e-mails show that as early as the fall of 2006 clients were questioning products tied to the mortgage market. On Oct. 19, 2006, Mitchell Resnick sent an e-mail to two colleagues asking whether the firm had material about “how great” BBB bonds tied to home loans were. BBB is a credit rating from Moody’s Investors Service and Fitch Ratings that indicates an asset is two levels above junk. “A common response I am hearing” from potential investors is “a concern about the housing market and BBB in particular,” Resnick wrote. “We need to arm sales with a bit more. Do we have anything?” Goldman Sachs Chief Financial Officer David Viniar convened a meeting of mortgage traders and risk managers on Dec. 14, 2006, according to a document prepared by the firm that the Senate panel released yesterday. ‘Net Long’ At the time, Goldman Sachs had a “net long exposure” to the subprime-mortgage market, meaning the bank was betting the market would continue to rise. At the meeting, executives agreed that the firm should “reduce its overall exposure to the subprime mortgage market,” the document said. Goldman Sachs’s Stacey Bash-Polley sent an e-mail to colleagues six days later with the subject line “Mezz Risk,” a reference to lower tranches of collateralized debt obligations linked to mortgages. Investors in mezzanine tranches are among the first to lose money when the asset starts souring. “We have been thinking collectively about how to help people move some of the risk,” wrote Bash-Polley, an executive in the Goldman Sachs division that sold bonds. “We need to make sure we arm” salespeople “with our pricing and have them focus on the more difficult positions.” Targeting Clients In targeting clients, Bash-Polley wrote that Goldman Sachs should focus on those that “can possibly do larger size at a level that would be attractive when you take into consideration the size of risk we could move.” “Makes sense to me,” responded Kevin Gasvoda , a Goldman Sachs colleague. Goldman Sachs spokesman Samuel Robinson declined to comment on the e-mails. The Senate hearing comes less than two weeks after the U.S. Securities and Exchange Commission sued the firm and employee Fabrice Tourre , 31, on claims they withheld material information from investors in a CDO. Goldman Sachs said it will vigorously contest the case, and Tourre told the senators yesterday, “I deny categorically the SEC’s allegations.” Levin said at the hearing that Goldman Sachs “profited by taking advantage of its clients’ reasonable expectation that it would not sell products that it didn’t want to succeed, and that there was no conflict of economic interest between the firm and the customers it had pledged to serve.” Making Money In a Sept. 26, 2007, e-mail released by the committee, Peter Kraus , Goldman Sachs’s then co-head of investment management, told Blankfein that some clients were expressing concern that the firm was making money for itself but not its customers. Goldman Sachs had reported six days earlier that third- quarter net income rose 79 percent to $2.85 billion after the bank bet against mortgage bonds. Kraus told Blankfein he had met with more than 10 clients and “individual prospects” since the earnings announcement. “The institutions don’t and I wouldn’t expect them to, make any comments like ur good at making money for urself but not us,” wrote Kraus, who left Goldman Sachs in September 2008 after working at the company for 22 years. “The individuals do sometimes, but while it requires the utmost humility from us in response, I feel very strongly it binds clients even closer to the firm. The alternative of take ur money to a firm who is an under performer and not the best, just isn’t reasonable. Clients ultimately believe association with the best is good for them in the long run,” he wrote. To contact the reporters on this story: Joshua Gallu in Washington at jgallu@bloomberg.net ; Jesse Westbrook in Washington at jwestbrook1@bloomberg.net

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Greek Junk Contagion Presses EU to Broaden Bailout

April 28, 2010

By Simon Kennedy and Emma Ross-Thomas April 28 (Bloomberg) — Europe’s worsening debt crisis is intensifying pressure on policy makers to widen a bailout package beyond Greece after a cut in the nation’s rating to junk drove up borrowing costs from Italy to Portugal and Ireland. As German Chancellor Angela Merkel delays approval of a 45 billion-euro ($59 billion) Greek rescue, the crisis is spreading. Portugal’s benchmark stock index yesterday fell the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse, while the extra yield that investors demand to hold Italian and Irish debt over bunds remained near yesterday’s 10-month high. The danger for European officials is that the fiscal turmoil which started six months ago with fudged Greek budget data will spin out of their control. As Greece waits for its euro-region partners to disperse funds, the European Union has announced no concrete plans to help other nations should aid be needed. The euro yesterday weakened to the lowest in a year. “Policy makers need to get ahead of the curve,” Eric Fine , who manages Van’s Eck’s G-175 Strategies emerging-market hedge fund. “This is no longer a problem about Greece or Portugal, but about the euro system.” Governments will hold a summit by around May 10 to discuss Greece, EU President Herman Van Rompuy said today in Tokyo. ‘Well on Track’ “Negotiations are going on and they are well on track and there is no question about the restructuring of the debt,” he said at a press conference. The spread on Italy’s debt fell 1.3 basis points to 114.4 from 115.7 yesterday after the ratings cut, the highest since July. Portugal’s PSI-20 stock index dropped 5.6 percent, the most since October 2008. The yield on two-year Greek notes surged to more than 23 percent today, and the nation’s securities regulator imposed a two-month ban on short sales on the Athens stock exchange. The euro gained today after the Financial Times reported the International Monetary Fund may increase its financial assistance in the first year to Greece by 10 billion euros from the current 15 billion euros, citing unidentified bankers and officials in Washington. The currency was trading at $1.3195 at 12:45 p.m. in Tokyo, having earlier traded at $1.3145, the lowest since April 29, 2009. Haggling Erik Nielsen , chief European economist at Goldman Sachs Group Inc., said the Athens talks were likely focused on assistance in the first year of between 55 billion euro and 75 billion euros. “I suspect that some haggling is now going on between the IMF and the Europeans on the burden sharing of a bigger program,” he said in a note to clients from Washington yesterday. “Investors should focus on the conditionality attached because that’s what will determine the sustainability of the program.” Bonds plunged as Standard & Poor’s lowered its rating on Greece by three steps to BB+ from BBB+ and warned that investors could recover as little as 30 percent of their initial outlay if the country restructures its debt. The shift came minutes after the rating company reduced Portugal by two steps to A- from A+. Sovereign ‘Crisis’ The moves exacerbated concern that Portugal and other nations trying to cut budgets will be left to fend for themselves by an EU that took two months to agree on a plan for Greece. “The biggest risk now is that the market speculates against every single indebted peripheral country, and that could lead to a sovereign debt crisis,” said Axel Botte , a fixed- income strategist at AXA Investment Managers in Paris. “The contagion risk is real.” Portuguese Finance Minister Fernando Teixeira dos Santos said yesterday his country must react to “attacks by markets.” The crisis is deepening as German lawmakers debate whether to put taxpayers’ money at risk in the face of public opposition and an election in the state of North Rhine-Westphalia on May 9. Bild Zeitung , Germany’s biggest-selling tabloid, yesterday ran a front-page headline asking: “Why do we have to pay Greece’s luxury pensions?” European Central Bank President Jean-Claude Trichet, who declined to comment to reporters on yesterday’s downgrades, is in Berlin today to brief lawmakers on Greece’s deficit-cutting plans. The country is struggling to convince investors it can push its shortfall below the EU’s limit of 3 percent of gross domestic product from 13.6 percent last year. Surge in Yields The yield on the Greek two-year note rose 492 basis points to 23.9 percent today, more than 20 times the comparable German bond and 10 percentage points more than similar-maturity notes from Pakistan. Greece, which faces 8.5 billion euros in bonds coming due on May 19, must still agree on terms for its rescue package, which will be co-financed by the euro region and the IMF. Greek Prime Minister George Papandreou last week activated the aid package and is facing fire from investors who say his budget steps need to go further and from voters who are staging strikes to protest further austerity measures. As the turbulence exposes the weakness of having a currency area without a single fiscal authority, some economists said policy makers need to create a lending mechanism that will help other euro areas members through fiscal crises. Authority Needed “What is missing in Europe is an authority that can back sovereigns through a crisis,” James Nixon , co-chief European economist at Societe Generale SA in London. “We desperately need this.” The ECB should consider the “nuclear option” of buying government bonds to fight the crisis, said Jacques Cailloux , chief European economist at Royal Bank of Scotland Group Plc. While the central bank is prohibited from buying assets directly from governments, it can do so on the secondary market. “It sends a signal to investors that the ECB is confident member states won’t default,” said Cailloux. “It’s a powerful confidence shock.” ECB officials including Trichet have down played the risk of contagion from Greece, arguing other economies are in better shape even if they need to cut deficits. Still, Ireland’s deficit was 14.3 percent of GDP last year, the highest in the EU. Spain’s was 11.2 percent and Portugal’s 9.4 percent. Marc Faber , the publisher of the Gloom, Boom & Doom report, said the time had come to eject euro members that repeatedly violated the region’s budget rules, even though no mechanism for such steps yet exists. “The best would be to kick out Greece and the countries that abuse the system,” Faber said in an interview. “They didn’t have the fiscal discipline that was essentially imposed by EU.” To contact the reporters on this story: Simon Kennedy in Paris at skennedy4@bloomberg.net Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net ;

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`Pac-Man’ Forecasts Victory in Philippine Election Before Mayweather Fight

April 28, 2010

By Clarissa Batino and Francisco Alcuaz Jr. April 28 (Bloomberg) — Manny Pacquiao , the boxing champion vying to become a Philippine congressman, said he’s confident of winning his first election victory after switching his candidacy to one of the nation’s poorest provinces. “Pac-Man,” a national icon who escaped childhood poverty to win world titles and earn more than $10 million a fight, is promising to improve schools, hospitals and welfare in Sarangani in the southern Philippines. He lost a 2007 bid for a seat in the neighboring province of South Cotabato, where he grew up. “We have a bigger chance this time because we’re more prepared,” Pacquiao said in an interview in Manila on April 26. “So many people need assistance from government, but they’re being neglected.” Pacquiao’s failed 2007 campaign underscores the difficulty of dislodging incumbent political dynasties, even for a wealthy champion of the poor, in a country where one in four people live on less than $1.25 a day. Pacquiao is running against Roy Chiongbian, brother of the retiring congressman, who describes his parents as “the father and mother” of the province. “He has to prove himself,” said Segundo Romero, a visiting political science professor at De La Salle University in Manila. “He has not done anything. The people know you can’t translate competencies in one area to another in skills as different as politics and boxing.” ‘Sincere Politician’ Sarangani was rated in the bottom quarter of Philippine provinces with 45 percent of families classified as living in poverty as of 2006, according to the National Statistical Coordination Board . “What the province needs is a sincere politician who wants to help and will help,” the 31-year-old Pacquiao said. “There are too many poor.” Sarangani was established as a province independent from South Cotabato in 1992 under legislation authored by James Chiongbian, according to the local government’s Web site. Pacquiao grew up in the South Cotabato city of General Santos. “My father created the province,” Roy Chiongbian, whose brother is prevented by term limits from standing for re- election, said by phone from Sarangani. “We’re from here.” Chiongbian is chief executive officer of his family’s plastics business and helps run a shipping line that transports cars and heavy equipment from Japan to Manila. “We all have our limitations,” he said of Pacquiao. “Me being a businessman, I can’t be a good boxer. Tiger Woods can’t be a good tennis player. If voters look at him as a good boxer, a champion, I’m okay. If they look at him as a politician, I will have a fight.” Boxing Hero As a child, Pacquiao slept on cardboard in the street and sold cigarettes to help his mother, a vendor of fish crackers, feed the family. He often subsisted on one bowl of rice a day. He said the shared experience of poverty has spurred him to back Senator Manuel Villar in the presidential election, also held on May 10. Villar also rose from humble beginnings to amass a fortune estimated by Forbes magazine at $530 million. “The past presidents all came from wealthy families,” Pacquiao said. “None of them experienced poverty. Manny Villar came from a poor family, knew how it was to be poor and what their needs are. I think he’s in the best position to help the poor.” Villar trails presidential frontrunner Benigno Aquino , the son of a former president, by 12 percentage points, according to a survey in the BusinessWorld newspaper this week. Villar was ousted as Senate leader in 2008 amid allegations he diverted a road to benefit one of his property projects, and has been accused of corruption by Aquino. He denies any impropriety and the Villar camp has condemned “black propaganda” tactics. Mayweather Fight Pacquiao said he will accept the election result. “Whoever wins, we will support” them, he said. “We will respect the results, the choice of the people.” Win or lose in Sarangani, he may not be done with boxing yet. Pacquiao, rated the world’s best pound-for-pound fighter by The Ring magazine, said there’s a “big possibility” he’ll fight No. 2 Floyd Mayweather Jr . in his last bout before retiring. The public’s desire to see Pacquiao prolong his boxing career may be holding back his political prospects, according to De La Salle’s Romero. “They are preventing him from destroying himself,” he said. “They know if he becomes a politician, they’ll lose him as a boxing hero.” To contact the reporters on this story: Clarissa Batino at cbatino@bloomberg.net ; Francisco Alcuaz Jr . in Manila at falcuaz@bloomberg.net

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Georgia Plans $280 Million Sewer-Loan Sale to Preserve 6,000 Teacher Jobs

April 28, 2010

By Terrence Dopp April 28 (Bloomberg) — Governor Sonny Perdue of Georgia , where state revenue has declined for three years in a row, is counting on getting as much as $288 million by selling loans made to cities and counties for water and sewer projects. The sale may bring in the equivalent of 6,000 teachers’ salaries, according to Bert Brantley, a Perdue spokesman. Republican Perdue, 63, plans to offer investors some of $676 million in Environmental Facilities Authority loans. The sale of the tax-free loans, passed by lawmakers this month, would be the first in Georgia’s history, said Thomas Hills , the state’s chief financial officer. Selling assets including student loans to raise operating revenue has been at least debated in states from Illinois to Colorado and California . States are following banks, which often sell loans such as mortgages they originate, to bring in cash. “Most of the prominent U.S. investment banks” have responded to a request for qualifications for potential underwriters on a sale, the 65-year-old finance chief said. Georgia doesn’t disclose bidders for state business until the process closes, which may be in a “couple of weeks,” he said. The AAA rated state authority lends to local governments to help pay for projects that improve water supplies and sewer systems. In a 2009 research study , the Georgia Public Policy Foundation suggested that the state could reap as much as $500 million by “monetizing” the agency’s local-project loans. Authority as Banker The group says the agency surpassed its initial mission of assisting local governments that may not have access to credit or are unable to obtain favorable terms. The agency has taken on the role of a bank and competes with commercial lenders, according to the foundation’s August report. “These are transactions that happen all the time in the private sector,” said Kelly McCutchen , 43, the president of the Atlanta-based group and the author of the 2009 study. “The quality of these loans was very good and there’s no reason why we shouldn’t get a high price.” Loans that may be sold have an average maturity of about 18 years and an average interest rate of 4.05 percent, according to state documents. The average yield on top-rated 18-year municipal general-obligation bonds was 3.93 percent yesterday. The state is counting on low risk and higher interest rates to draw investor bids, Hills said. He said municipal-bond funds and institutional investors are the most likely buyers. Higher Rates “Some of those loans were made in previous years, when interest rates were higher than they are now,” Hills said in an interview. “I wouldn’t suspect that we’ll have to substantially discount them. These loans are very attractive in this environment.” The amount raised by the sale may change, based on market conditions and the response from investors, Hills said. The receipts will go into the general fund, to help bring the state’s spending plan into balance, Hills said. Unemployment in Georgia, which has AAA credit, rose to a rate of 10.6 percent last month, or more than double the 5.1 percent logged in December 2007, when the recession began, and up from 10.5 percent in February. Revenue for the first three months of the year slid almost 12 percent from a year earlier, the state’s Department of Revenue said April 6. Perdue’s $17.7 billion state budget for the year that begins July 1 is 16 percent less than his 2009 spending plan, as the state copes with lingering effects of the recession. While state revenue has fallen $3.4 billion in the past three fiscal years, net tax collections increased in March, the first monthly gain since November 2008, according to state figures. Timing Undecided The state will decide when to move ahead with the sale based on assessments of market conditions. Debt to be sold may be bundled into portions or offered as individual loans, based on suggestions from underwriters, Hills said. A bill authorizing the transaction has received final approval from the state Legislature and the deal could move forward in the next few months, the governor’s office said. “Things got so bad we felt like rather than doing an additional $288 million in cuts to education and public safety this would be a better option,” Brantley, Perdue’s spokesman, said in an interview. “Had we not had an additional $288 million in the budget, who knows what we would have to do.” To contact the reporter on this story: Terrence Dopp in Trenton, New Jersey, at tdopp@bloomberg.net .

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Yuan’s Gain Against Dollar May Be Delayed as Greek Crisis Drives Down Euro

April 28, 2010

By Bob Chen and Shamim Adam April 28 (Bloomberg) — The yuan’s climb to a one-year high against the euro will erode China’s competitiveness in its largest export market and delay an end to its currency’s peg against the dollar, said UniCredit SpA and Societe Generale SA. Forward contracts on the currency fell after debt-rating downgrades of Greece and Portugal yesterday deepened concern that a sovereign-credit crisis will hamper a global economic recovery. The European turmoil may buttress Premier Wen Jiabao ’s reticence to abandon the yuan’s peg to the dollar, adopted in July 2008 to shield exporters from the world recession. “Chinese authorities have said all along that they are concerned about the stability of the global recovery,” said Joe Craven , Asia-Pacific head of currencies and fixed income at UniCredit in Hong Kong. “Given what’s happening presently in Europe, the likelihood of them doing anything in the short term is smaller.” The yuan strengthened 1 percent today to 8.9955 per euro, the biggest gain since March 24, bringing its advance over the past six months to 12 percent. Twelve-month non-deliverable forwards fell 0.1 percent to 6.6211 per dollar, 3.1 percent stronger than the spot rate of 6.8258. China’s policy makers have indicated they are waiting for clearer signs of a sustained global rebound before deciding to let the yuan gain. Evidence of a “very certain” recovery is needed before China can roll back stimulus measures adopted during the crisis, central bank Governor Zhou Xiaochuan said in an interview last month in San Jose, Costa Rica. Spreading Crisis Europe’s worsening debt crisis is intensifying pressure on policy makers to widen a bailout package beyond Greece after a cut in the nation’s rating to junk drove up borrowing costs across the euro zone. As German Chancellor Angela Merkel delays approval of a 45 billion-euro ($59 billion) Greek rescue package, the debt crisis is spreading. Portugal’s benchmark stock index yesterday fell the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse, while the extra yield that investors demand to hold Italian and Irish debt over bunds rose to a 10-month high. “I don’t see how China would strengthen their currency amid the meltdown of European sovereigns,” said Robert Reilly , co-head of Asian fixed income and currencies flow business at SocGen in Hong Kong. “From a trading point of view, I think appreciation will be delayed.” Global Effort U.S. officials have led an increasingly global effort to press China’s government to let the yuan appreciate against the dollar. The central bank chiefs of India and Brazil joined the call this month, while the issue wasn’t mentioned in a Group of 20 communique last week. Treasury Secretary Timothy Geithner , who has been pushed by American lawmakers to declare China a manipulator of its currency, said in Washington April 23 that “it’s in their interest” to shift to a more flexible currency. The International Monetary Fund said last week slowing credit growth and a stronger yuan would help cool “excess demand pressures.” The yuan should be allowed to appreciate “slowly and gradually” with a wider trading band and more flexibility “over the medium and long term,” Li Daokui , an adviser to China’s central bank, said this month. “It’s events like these in Greece that will make the Chinese cautious,” said Bill Belchere , global chief economist at Mirae Asset Securities in Hong Kong. “It raises the possibility that perhaps things are not as good as we would like to believe.” Exports to Europe China’s exports to Europe had been surging with the recovery in global trade prior to the flaring of sovereign- credit concerns. China exported $21.45 billion of merchandise to the European Union in March, a 24.6 percent increase from a year earlier, Chinese customs bureau data shows. The EU accounts for the biggest share of China’s $112.11 billion of exports last month. Shipments to the EU compared with $19.33 billion of exports to the U.S. “The turmoil in Greece shows that China is justified in wanting the global economic recovery to be entrenched before it makes any adjustments to its currency,” said Lu Ting , a Hong Kong-based economist at Bank of America-Merrill Lynch. “Officials in Beijing know very well there is still a lot of volatility in global markets.” To contact the reporters on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net Shamim Adam in Singapore at sadam2@bloomberg.net

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Levin Grilling Blankfein Over Ethics Means Clash of Harvard Law Standouts

April 28, 2010

By James Sterngold April 28 (Bloomberg) — Lloyd C. Blankfein and Carl Levin both have degrees from Harvard Law School. Judging from their confrontation on Capitol Hill yesterday, they hardly speak the same language. Levin, chairman of the Senate’s Permanent Subcommittee on Investigations , pummeled Blankfein, chairman and chief executive officer of Goldman Sachs Group Inc. , with a barrage of questions about why the Wall Street firm sold securities it was betting against. Blankfein struggled to complete sentences as he tried to describe what it means to be a market-maker. “Levin had a simple narrative to tell: Goldman bet against their clients,” said Jonathan Taplin , a professor of communication at the University of Southern California’s Annenberg School in Los Angeles. “Blankfein had these long complicated explanations, but I’m not sure the average person listens or cares about that.” The clash of the two chairmen came toward the end of more than 10 hours of public hearings looking into Goldman Sachs’s role in the financial crisis. At times, it seemed like a mismatch. Levin, 75, a Michigan Democrat, frequently interrupted Blankfein, 55, who runs Wall Street’s most profitable bank. “Your people think it’s a piece of crap and go out and sell it,” said Levin, his reading glasses pushed to the tip of his nose, referring to Goldman Sachs e-mails in which traders spoke of selling securities to customers. “We’re talking about betting against the very thing that you’re selling, without disclosing that to your client.” Detroit, Brooklyn Blankfein, often squinting, talked about providing “liquidity” and using “instruments” that give customers “the risk they want.” Levin just returned to his theme. “What do you think about your own people selling securities they think are crap?” the senator asked. Both Levin, who grew up in Detroit, and Blankfein, the son of a postal worker raised in Brooklyn, went to public schools before attending elite colleges. Levin graduated from Swarthmore College in Pennsylvania, and Blankfein from Harvard College in Cambridge, Massachusetts. Both attended Harvard Law School, Levin graduating in 1959 and Blankfein in 1978. Blankfein practiced tax law before joining the commodities firm J. Aron & Co., later acquired by Goldman Sachs. He became CEO in 2006. Last year he received a salary of $600,000 and a bonus in stock of $9 million. ‘Rorschach Test’ Levin worked as an assistant attorney general in Michigan and general counsel for the Michigan Civil Rights Commission before being elected to the Detroit City Council and then winning a seat in the Senate in 1978. He is chairman of the Armed Services Committee as well as the investigations subcommittee and has led probes into unfair credit card practices, money laundering and the collapse of Enron Corp. Last year he made $174,000. The two men have risen to the heights of professions that are held in low regard. Viewers tended to see what they wanted to in the hearing because of cynicism both about Wall Street and Washington, said Victor Hwang, managing director of T2 Venture Capital in Los Altos Hills, California. “It’s a Rorschach test for people,” Hwang said. “Was the financial crisis caused by a failure of the markets or by the failure of government? I am of the belief that the markets utterly failed and that government failed to exercise good oversight. Levin is more credible, but only because Goldman Sachs is near zero right now.” ‘Selling Junk’ Donna Grimme, president of H & N Plumbing and Heating in Prairie du Chien, Wisconsin, saw the confrontation another way. “I blame the politicians more than Goldman Sachs or Blankfein,” said Grimme. “Goldman and Blankfein have more credibility than a senator. The politicians want to get more involved. If the government would stay out of financial markets and let things fall where they may, we’d be better off.” Robert Collet, a real estate broker in Downey, California, said he lost an investment in a condominium that was foreclosed and that his home equity of about $180,000 had been wiped out. He said he believed many politicians were being hypocritical because they had accepted contributions from Goldman Sachs and other financial firms. Still, he said people needed to be protected against aggressive bankers. “I’ll take Levin over Blankfein any day,” said Collet. “I just feel they want it all. If they have 90 percent of something, they’re thinking about how to get the other 10 percent. We need government to protect us from that.” As Levin’s questioning of Blankfein dragged on into the evening, he lectured Blankfein about the ethics of his business. “You shouldn’t be selling junk,” Levin said. “You shouldn’t be selling crap. You shouldn’t be betting against your own customers.” To contact the reporter on this story: James Sterngold in New York at jsterngold2@bloomberg.net

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Thai Army Fires Rubber Bullets as Protesters Try to Rally Outside Bangkok

April 28, 2010

By Daniel Ten Kate and Suttinee Yuvejwattana April 28 (Bloomberg) — Thai security forces fired rubber bullets at a procession of about 5,000 anti-government protesters, thwarting their attempt to rally support outside the capital. Authorities opened fire at a checkpoint to prevent demonstrators from traveling to a fresh-food market north of Bangkok, police spokesman Prawut Thavornsiri said by phone. The army is also attempting to arrest convoy members, army spokesman Sansern Kaewkamnerd said by phone. The protester plan to send “task forces” out from their Bangkok base threatens to provoke clashes after the government yesterday threatened a stern response. A grenade attack on the elevated train line killed one person last week and a failed attempt to disperse the group April 10 left 25 people dead. “We want to show the people at the market that we stand with them,” protest spokesman Sean Boonpracong said by phone. “We will see if the army cracks a whip on us.” The demonstrators, who mostly support fugitive ex-leader Thaksin Shinawatra , have occupied an area roughly the size of New York’s Central Park for the past 25 days. Yesterday they blocked a commuter train line during morning rush hour, prompting the government to warn of a crackdown. “We have been patient for two months,” Deputy Prime Minister Suthep Thaugsuban said yesterday. “But we will use decisive measures under the law from now.” Carrying Rifles Soldiers carrying rifles this morning were stationed on Silom and Sukhumvit roads, Bangkok business arteries that connect with the cordoned-off protest site. Water cannon trucks and riot police are also positioned in the area. The SET index fell 0.6 percent as of the mid-day break, and is Asia’s second-worst performer this month after the benchmark in Shanghai. Thai stocks have risen 3 percent for the year compared with a 4 percent gain for the MSCI Asia Pacific Index . Prime Minister Abhisit Vejjajiva , who last weekend rejected direct talks with the demonstrators, said yesterday the government would provide assistance for businesses affected by the protests. Measures would include rescheduling of tax payments, assistance with wages and help in making rent payments, he said. To contact the reporters on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

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Gulf of Mexico Oil Slick May Be Burned by U.S. to Prevent Damage to Coast

April 28, 2010

By Jim Polson and Mark Chediak April 28 (Bloomberg) — The U.S. Coast Guard is considering burning off parts of an oil slick in the Gulf of Mexico as soon as today as the spill drifts closer to Louisiana. The slick, the result of the sinking of a deep-water oil rig in the Gulf, has drifted 21 miles (34 kilometers) from the coast, U.S. Coast Guard Rear Admiral Mary Landry , the federal coordinator of the response, said at a press conference yesterday. Crews have begun placing floating barriers to try to protect coastal areas, she said. BP Plc , owner of the well, is spending $6 million a day trying to clean up the spill and stop the underwater flow, which continues at rate of about 1,000 barrels a day. “We are possibly 90 days out from securing the source permanently,” Landry said. “Burns can be very effective in providing a marked and significant decrease in the amount of oil contained in a spill area.” The spill may be one of the most significant in U.S. history and the deepest spill of oil on record, Landry said. BP is using floating barriers to try to keep the oil away from the Delta National Wildlife Refuge in Louisiana, Landry said. Barriers will be also be placed in Mississippi, Alabama and Florida as needed to protect birds and areas sensitive to pollution, she said. The Deepwater Horizon, owned by Geneva-based Transocean Ltd., exploded and sunk last week, leaving 11 of the 126-member crew dead. The U.S. Interior Department ’s Minerals Management Service and the Coast Guard are investigating the cause as they guide the cleanup. Valve Shutoff Unsuccessful A three-day effort to shut valves on the seafloor, using remote-operated vehicles, failed but will continue as engineers devise new techniques that may succeed, Doug Suttles , BP’s chief operating officer for exploration and production, said at the press conference. BP’s biggest expense from the rig explosion and sinking will be $100 million to drill another well that will plug the damaged well permanently, Chief Executive Officer Tony Hayward told reporters yesterday. Suttles has said several wells may need to be drilled, taking as long as three months. The company hopes to lower a dome-shaped apparatus toward the seafloor to capture the leak and pump it into tanks on the surface. That may take a month to put in place, Lars Herbst , a Minerals Management Service official, said at the press conference. Burning the Oil The controlled burn of the oil wouldn’t be visible from the shore, Landry said. The most recent controlled burn at a spill, off Newfoundland in 1993, consumed as much as 99 percent of the oil that crews managed to trap inside a special fire-resistant boom, Landry said. “It is useful as far as limiting potential environmental damage to marine life and limiting the amount of oil that makes landfall,” said Ken Medlock , a fellow in energy studies at Rice University’s James A. Baker III Institute for Public Policy in Houston. “Even if they do this, they still have to cap it. You can’t just burn and let it continue to leak.” Hayward and other senior BP executives met at the White House yesterday with Obama senior adviser Valerie Jarrett , energy and climate change policy adviser Carol Browner , Interior Secretary Ken Salazar , Homeland Security Secretary Janet Napolitano and Admiral Thad Allen , the U.S. Coast Guard commandant, according to an administration official. Discussion focused on BP’s understanding of the situation and actions the company is taking in response, including surface and subsurface activities, the official said. Napolitano and Salazar announced they’d signed an order outlining responsibility for a joint investigation of the cause of the disaster by the Coast Guard, a Homeland Security branch and the Minerals Management Service, which regulates offshore drilling in federal waters and is part of Salazar’s agency. To contact the reporters on this story: Jim Polson in New York at jpolson@bloomberg.net ; Mark Chediak in San Francisco at mchediak@bloomberg.net .

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GlaxoSmithKline Profit Tops Estimates on Sales of Vaccine for Flu Pandemic

April 28, 2010

By Trista Kelley April 28 (Bloomberg) — GlaxoSmithKline Plc reported first- quarter profit that beat analysts’ estimates, boosted by sales of a vaccine for pandemic influenza. Net income rose 19 percent to 1.34 billion pounds ($2.04 billion), from 1.13 billion pounds a year earlier, Europe’s second- largest drugmaker said today. Earnings excluding some items was 30.7 pence per share, compared with 26.3 pence, beating the 30.2 pence average estimate of 14 analysts surveyed by Bloomberg. Chief Executive Officer Andrew Witty has said the London- based company has endured the worst of the patent expirations on its medicines. Witty in February slashed research projects in depression and pain to focus on more promising therapies for Alzheimer’s and Parkinson’s diseases and multiple sclerosis. “The booming fundamentals override any shorter-term concerns,” Gbola Amusa, an analyst at UBS AG in London, wrote in an April 14 note to investors. “We look forward to 2011/12, where GSK has the most promising pipeline catalysts in all of EU large-cap pharma.” Glaxo said first-quarter swine flu vaccine sales reached 698 million pounds. The vaccine’s sales this year will be about equal to the 883 million pounds the shot generated in 2009, Glaxo said in February. Glaxo shares rose 3 pence to 1,217 pence at 12:09 p.m. in London trading. Costs resulting from U.S. President Barack Obama’s health- care overhaul have prompted Eli Lilly & Co., Johnson & Johnson and Abbott Laboratories to cut 2010 sales forecasts. Glaxo said it was able to absorb the cost of increased discounts to the Medicaid program that was part of the law and that it expects to offset any further impact through operational performance. Glaxo’s earnings per share exclude restructuring charges related to what it calls “significant” acquisitions and costs from a restructuring program, which Witty expanded in February. To contact the reporter on this story: Trista Kelley in London at tkelley2@bloomberg.net

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Greece Bondholders May Lose $265 Billion in Default as S&P Sees 70% Loss

April 28, 2010

By John Glover April 28 (Bloomberg) — Holders of Greek bonds may lose as much as 200 billion euros ($265 billion) should the government default, according to Standard & Poor’s. The ratings firm yesterday cut Greece three steps to BB+, or below investment grade, and said bondholders may recover only 30 percent to 50 percent of their investments if the nation fails to make debt payments. Europe’s most-indebted country relative to the size of its economy has about 296 billion euros of bonds outstanding, according to data compiled by Bloomberg. The downgrade to junk status led investors to dump Greece’s bonds, driving yields on two-year notes above 25 percent today from 4.6 percent a month ago as concern deepened the nation will delay or reduce debt payments. Prime Minister George Papandreou is grappling with a budget deficit of almost 14 percent of gross domestic product. “It’s now not just market sentiment, but a top rating agency sees Greek paper as junk,” said Padhraic Garvey , head of investment-grade strategy at ING Groep NV in Amsterdam. The yield on Greece’s 4.3 percent security due March 2012 surged 531 basis points, or 5.31 percentage points, to 24.3 percent as of 10:50 a.m. in London, after earlier climbing to a record 25.38 percent. Before yesterday, Greece’s bonds had lost about 17 percent this year, according to Bloomberg/EFFAS indexes . Yields move inversely to bond prices. Relative Ratings S&P’s reduction of Greece puts the nation’s debt on par with bonds issued by Azerbaijan and Egypt. Moody’s Investors Service rates Greece A3, while Fitch Ratings puts it at BBB-. The turmoil comes as European Union policy makers struggle to agree on measures to ease the panic over swelling budget deficits. Leaders of the 16 euro nations may hold a summit after the Greek government’s decision last week to tap a 45 billion- euro emergency aid package failed to reassure investors, a European diplomat and Spanish official said. German Chancellor Angela Merkel said she won’t release funds for the indebted nation until its government has a “sustainable” plan to reduce the deficit. The reduction may force investors who are prevented from owning anything but investment-grade rated bonds to sell. S&P indicated the downgrades may not be over, assigning Greece a “negative” outlook. “The downgrade results from our updated assessment of the political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory,” S&P London-based credit analyst Marko Mrsnik said in a statement. Credit-Default Swaps Traders of derivatives are adding to bets that Greece will fail to meet its debt payments. Credit-default swaps on Greek government bonds climbed 77 basis points to a record 901, according to CMA DataVision. The level implies the highest probability of default of any country tracked by CMA, surpassing Venezuela and Argentina for the first time. Default swaps on Portugal and Spain also advanced to all- time highs, with Portugal jumping 20 basis points to 406 and Spain rising 2 basis points to 211, according to CMA. The swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. A basis point on a contract protecting $10 million of debt from default for five years is equivalent to $1,000 a year. Yields Jump Minutes before lowering Greece’s ratings, S&P cut Portugal to A- from A+. Yields on Portugal’s two-year notes climbed 96 basis points to 5.75 percent. The yield on Italy’s two-year bonds rose 10 basis points to 1.83 percent and Spanish two-year yields increased 27 basis points to 2.31 percent. The downgrades may force banks to boost the amount of capital they’re required to hold against bets on sovereign debt, said Brian Yelvington , head of fixed-income strategy at broker- dealer Knight Libertas LLC in Greenwich, Connecticut. While bank capital rules give a risk weighting of zero percent for government debt rated AA- or higher, it jumps to 50 percent for debt graded BBB+ to BBB- on the S&P scale and 100 percent for BB+ to B-. “These downgrades are going to cause people to increase their risk weightings,” Yelvington said. To contact the reporter on this story: John Glover in London at johnglover@bloomberg.net

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Global Stocks $1 Trillion Loss on Greece No Reason to Sell for U.S. Funds

April 28, 2010

By Rita Nazareth and Whitney Kisling April 28 (Bloomberg) — The largest equity-market decline since February is failing to spur selling by the biggest U.S. money managers, who say losses will prove temporary as gains in earnings make stocks too cheap to pass up. Greece and Portugal’s credit downgrades yesterday are no reason to doubt forecasts for profit growth exceeding 50 percent at Standard & Poor’s 500 Index companies through 2011, said Kenneth Fisher , who oversees about $39 billion as chairman of Fisher Investments. Almost $1 trillion of global equity value was erased on concern rising public debt will spur defaults, derailing the global economy, data compiled by Bloomberg show. “It’s a little bit like yelling fire in a movie theater — it doesn’t mean the place is going to burn down ,” said Fisher, who favors mining companies, computer makers and retailers, in an interview from Woodside, California. “The quality of earnings is exceptional. Earnings are coming in overwhelmingly above expectations. I don’t see any signs that will stop.” While the global rally restored more than $21 trillion to equity markets since March 2009, investors are growing more skittish about the Euro region, which combined makes up the world’s second-largest economy behind the U.S. The Euro Stoxx 50 Index has fallen 4.3 percent this year on concern about growing deficits across the region. The MSCI Asia-Pacific Index gained 4 percent in 2010 and the S&P 500 increased 6.2 percent, according to data compiled by Bloomberg. Debt Downgrades The U.S. gauge lost 2.3 percent to 1,183.71 yesterday after S&P lowered Greek debt to junk status and Portugal was cut two steps. The Euro Stoxx 50 slid 3.7 percent and the euro dropped below $1.32 for the first time since April 2009. Greek two-year note yields surged to a record of almost 19 percent and Portugal’s jumped to 5.7 percent as credit-default swaps on Europe debt reached the highest ever. Companies in the S&P 500 may increase profits 29 percent this year and 19 percent in 2011, the biggest two-year advance since 1998, estimates from more than 1,500 analyst compiled by Bloomberg show. The index is priced at 14.8 times the average prediction for 2010 income. Should the forecasts prove accurate, the S&P 500 would be trading at its lowest multiple since the 1990s, excluding the six months after New York-based Lehman Brothers Holdings Inc. declared bankruptcy in September 2008. Yesterday’s plunge, which came during congressional testimony by executives of Goldman Sachs Group Inc. over the marketing of subprime mortgage securities, follows eight weeks of gains for the Dow Jones Industrial Average, the longest streak since 2004. Rising Caution “I have been cautious since the third week of April, thinking that we were setting up for a correction of somewhere between 5 and 10 percent,” said Jeff Saut , the chief investment strategist at Raymond James & Associates, which manages $230 billion in St. Petersburg, Florida. “Greece, Goldman don’t change my long-term view at all. We’re in a profit cycle recovery. Profits are exploding at the biggest ramp rate in decades and we’re playing to that tune.” The cost of options to insure against losses in the S&P 500 as measured by the Chicago Board Options Exchange Volatility Index climbed 31 percent yesterday, to 22.8 from 17.5, the biggest increase since October 2008. DuPont Co., the Wilmington, Delaware-based chemical maker, Atlanta-based United Parcel Service Inc. , the largest package- delivery company, and Dearborn, Michigan-based automaker Ford Motor Co. reported profits or sales yesterday that topped analyst estimates, and their shares fell 4.4 percent on average. The declines show Europe is investors’ focus, said David Rosenberg , chief economist for Gluskin Sheff & Associates. Earnings Reports “On the Greece file, the big concern now is contagion risks,” Rosenberg said from Toronto. “The headlines were all about Greece, but the real action was in Portugal — and it’s not pretty. So what we are talking about is heightened risk premiums at a time when a 17 VIX index was underscoring a very high level of confidence over the outlook for the economy.” Almost 80 percent of S&P 500 companies reporting results this earnings season have topped analysts’ forecasts, data compiled by Bloomberg show. While profits may be outstripping projections, sales are matching analysts’ predictions when bank and brokerage results are excluded, according to Rosenberg’s data. The International Monetary Fund last week raised its forecast for worldwide growth this year while cautioning that a failure to contain public debt may have “severe” consequences. Global economic expansion may reach 4.2 percent in 2010, the fastest rate since 2007, the Washington-based fund estimated. “Fiscal fragilities” pose the biggest threat to reaching the forecast, the IMF said April 22. “I’m not saying we’re out of the woods,” said John Lynch , who helps oversee $155.5 billion as chief market strategist at Evergreen Investments. “The recovery is real and profits are strong. The cyclical strength is still very powerful. We’ve just got to make sure that the long-term challenges don’t derail it.” To contact the reporters on this story: Whitney Kisling in New York at wkisling@bloomberg.net ; Rita Nazareth in New York at rnazareth@bloomberg.net

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Goldman Sachs Pilloried in Senate Showdown, Walks Away $549 Million Ahead

April 28, 2010

By Christine Harper and Michael J. Moore April 28 (Bloomberg) — Goldman Sachs Group Inc. executives endured more than 10 hours of congressional grilling in one of the most public, and most hostile, political lashings in the firm’s 141-year history. By day’s end, the investment bank’s market value had risen by $549 million. Senator Carl Levin and members of his Permanent Subcommittee on Investigations said evidence they presented made the case for Congress to pass legislation tightening financial regulation. Goldman Sachs, the world’s most profitable securities firm, was alone among 79 stocks of the Standard & Poor’s 500 Financial Index in posting a gain yesterday. “Both sides got what they wanted,” said Robert Hillman , a securities law professor at the University of California, Davis. “The Senate probably did what it felt it had to do, which was bring Goldman people up and embarrass them. For Goldman, the goal was to demonstrate that they had not engaged in fraud or illegal conduct. They probably succeeded in that.” The senators, capping a probe of Goldman Sachs that has lasted more than a year, peppered Chief Executive Officer Lloyd Blankfein and six current and former executives with questions about their duty to clients and the ethics of betting against the housing market as the bank sold mortgage-linked securities to customers. The hearing came 12 days after the Securities and Exchange Commission sued the New York-based firm for fraud, saying the bank misled investors in a mortgage-linked investment, claims the company denies. ‘Jarring’ Realities “The cultural realities of what you all do is jarring to most Americans,” Sen. Claire McCaskill , a Democrat from Missouri and former prosecutor, told Blankfein during the hearing. “This notion of selling a product that you’re betting against is hard for people to understand.” Blankfein, who repeatedly insisted the company had done nothing wrong, said after the hearing that he had “no illusions” about how hard Wall Street must work to win back the trust of the American people. “Wall Street has a lot of work to do to regain the confidence of Main Street,” Blankfein told Bloomberg Television. “We have a lot to improve in our communication with Main Street and we’re committed to do it.” Some senators used the hearing to advertise their position on a financial regulatory bill that’s been blocked by Republicans so far this week. Levin concluded the hearing by calling for tougher regulation than the bill contains, while Republicans including Tom Coburn said they felt the measure fails to address issues such as how to handle companies that are “too big to fail.” Russian, Japanese TV As the day began, a line to enter the hearing stretched down the corridor on the first floor of the Dirksen Senate office building, the equivalent of half a city block. At the head of the queue were four protesters dressed in black-and- white convict stripes and holding “wanted” posters for Blankfein and Fabrice Tourre , the 31-year-old Frenchman who was the only Goldman Sachs employee named in the SEC suit. Television crews from Russia and Japan were among journalists who filled the packed room. Disagreements between the senators and the executives started with how much money the bank earned. Levin said Goldman Sachs made $3.7 billion in 2007 by placing “huge shorts” against mortgage-linked securities. Taking into account losses on securities it held, the firm’s residential mortgage securities had net revenue of less than $500 million, Chief Financial Officer David Viniar said. “How about the fact that you sold hundreds of millions of that deal after your people knew it was a shitty deal?” Levin asked Daniel Sparks , who ran the bank’s mortgage unit at the time. “Does that bother you at all?” ‘One Shitty Deal’ Levin was referring to a June 2007 e-mail from Thomas Montag , the former head of sales and trading in the Americas at Goldman Sachs, to Sparks. The message described a set of mortgage -linked investments that his bank had been trying to sell as part of “one shitty deal.” “I don’t recall selling hundreds of millions of that deal after that,” Sparks replied, adding that he believed the e-mail referred to his performance, not the security itself. “If you can’t give a clear answer to that one, Mr. Sparks, I don’t think we’re going to get too many clear answers from you,” Levin said. Goldman as ‘Own Client’ Blankfein, responding to questions from Levin, said the nature of the principal business often puts the firm on the opposite side of customers and market-makers have no obligation to tell clients about their own position in a security. “What clients or customers are buying is they are buying an exposure,” Blankfein said. “The thing we are selling to them is supposed to give them the risk they want. They are not coming to us to represent what our views are. They probably, the institutional clients we have, wouldn’t care what our views are. They shouldn’t care.” Levin, a Michigan Democrat, told Blankfein he’s “troubled” by his view that the company doesn’t seem to understand conflicts of interest. “You can make sure that someone you sell an investment to knows that you believe it’s a bad investment,” Levin said. “You obviously don’t see that. It troubles me that you don’t see that.” Levin added, “It troubles me that you don’t see that your client is yourself. Goldman Sachs has turned itself into its own client.” The U.S. claims Goldman Sachs misled investors by failing to disclose that hedge fund Paulson & Co., which was betting against the U.S. mortgage market, helped the Abacus CDO manager select securities to include in the portfolio. Goldman Sachs has called the SEC’s lawsuit “completely unfounded.” Paulson wasn’t accused of any wrongdoing. Tourre Speaks Tourre , wearing a charcoal-gray suit, white shirt and red- and-navy striped tie, testified that he “categorically” denied the allegations. “I will defend myself in court against this false claim,” Tourre told the standing-room-only hearing. “The securities weren’t meant to fail; they succeeded by conveying the risks that people wanted,” Blankfein told Senator Jon Tester about the Abacus deal. “I’m sorry, it’s like we’re speaking a different language here,” replied Tester, a Democrat from Montana who was a farmer before he entered politics. Tester said “it seemed to me more than just a little bit odd” that Paulson helped pick securities even as he was betting against a CDO that later collapsed in value. The politicians expressed frustration over a lack of direct answers during the first panel, which lasted more than five hours and featured testimony from Tourre; Sparks; Michael Swenson , a managing director in the structured-products group; and Joshua Birnbaum , a former managing director in the group. Don’t Sell ‘Crap’ Levin and Viniar, the chief financial officer, agreed on at least one thing during his testimony: Investment bankers shouldn’t call the securities they sell “crap.” “I think that’s very unfortunate to have on e-mail,” Viniar said, drawing laughter from the audience and the press, after Levin asked how he felt when he read e-mails in which Goldman Sachs employees described mortgage-linked securities as “crap” or “shitty.” “Please don’t take that the wrong way,” Viniar said when pressed by Levin. “I think that’s very unfortunate for anyone to have said that in any form.” Levin then asked, “How about to believe that and sell it?” and Viniar agreed that was also unfortunate. “Well, that’s what you should have started with,” Levin said. To contact the reporters on this story: Christine Harper in New York at charper@bloomberg.net ; Michael J. Moore in New York at mmoore55@bloomberg.net .

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Stocks Plummet, Metals Slide, Greek Yields Soar as Default Concern Widens

April 28, 2010

By David Merritt April 28 (Bloomberg) — Stocks extended a global slide and commodities dropped, while yields on Greek two-year notes jumped to a record 24 percent and the euro traded near a one-year low against the dollar as sovereign-debt concern spread. The MSCI World Index of 23 developed nations’ stocks fell 1.3 percent at 10:34 a.m. in London. Greece’s ASE Index declined 0.8 percent even as the securities regulator banned short- selling on the Athens bourse. Portugal’s PSI-20 Index dropped the most since October 2008. Futures on the Standard & Poor’s 500 Index retreated 0.3 percent. The extra yield investors demand to hold Greek 10-year bonds instead of benchmark German bunds surpassed 8 percentage points. Nickel and copper fell. Stocks, commodities and the euro tumbled, while Treasuries rallied yesterday when S&P lowered Greece’s debt rating to junk and Portugal by two steps. European Central Bank President Jean- Claude Trichet and International Monetary Fund Director Dominique Strauss-Kahn will meet German politicians in Berlin today to promote a financial rescue plan. The euro rebounded amid speculation that the IMF will provide more aid to Greece. “The danger is that the authorities lose control of the situation and that sovereign yields rise to levels that make a bailout for Greece even more difficult,” Gary Jenkins , a strategist at Evolution Securities in London, wrote in a note. “Unless we see some stabilization soon, a number of governments may find it very difficult to access the markets at a yield that makes any financial sense for them or, in some cases, at all.” Two-Year Note The yield on Greece’s two-year note has risen almost fivefold this month on concern euro-region support for the country will come too late to prevent a default. The yield soared almost 600 basis points today. Ireland’s jumped 97 basis points to 4.72 percent, Portugal’s increased 42 basis points to 5.73 percent and Spain’s rose 26 basis points to 2.33 percent. Credit-default swaps on Greece, Portugal and Spain advanced to records, according to CMA DataVision. Contracts on Greece climbed 42 basis points to 865.5, Portugal jumped 20 to 406 and Spain increased 2 basis points to 211, CMA prices show. “It’s not a question of the danger of contagion. Contagion has already happened,” Angel Gurria , secretary general for the Organization for Economic Cooperation and Development, said in a Bloomberg television interview today in Berlin. “This is like Ebola. When you realize you have it you have to cut your leg off in order to survive.” Stocks Slump The Stoxx Europe 600 Index slumped 1.4 percent, extending yesterday’s 3.1 percent slide. Spain’s IBEX 35 tumbled 2.9 percent while Italy’s FTSE MIB Index lost 2.3 percent. Banco Comercial Portugues SA, whose rating was also cut yesterday by S&P, plunged 9.8 percent in Lisbon. Banco Santander SA , Spain’s largest bank, fell 4.5 percent in Madrid. Nobel Biocare Holding AG plummeted 14 percent in Zurich after saying first-quarter revenue fell. Royal Dutch Shell Plc gained 1 percent in London after reporting a surge in profit. In Athens, National Bank of Greece SA , the nation’s largest lender, rose 1 percent, paring some of yesterday’s 10 percent plunge. The Hellenic Capital Market Commission banned short- selling of stocks on the Athens stock exchange effective today through June 28, citing “the extraordinary conditions prevailing on the Greek market.” The ASE Index is down 23 percent so far this year. The VStoxx Index , which gauges the cost of using options to protect against declines in the Euro Stoxx 50 Index, rallied 17 percent to the highest level since July 8. The MSCI Asia Pacific Index fell 1.8 percent as financial stocks declined. Mitsubishi UFJ Financial Group Inc sank 1.6 percent in Tokyo. Canon Inc. , a camera maker that counts Europe as its largest market, slumped 2.7 percent. Billabong International Ltd., an Australian surfwear maker that gets 23 percent of its revenue in Europe, sank 2.8 percent in Sydney. U.S. Futures The decline in U.S. futures indicated the S&P 500 may continue yesterday’s 2.3 slide, the biggest since February. Even so, companies in the S&P 500 may increase profits 29 percent this year and 19 percent in 2011, the biggest two-year advance since 1998, estimates from more than 1,500 analyst compiled by Bloomberg show. Wellpoint Inc. and Dow Chemical Co. are among 48 companies on the benchmark gauge that report earnings today. The MSCI Emerging Markets Index dropped 1.7 percent. Russia’s Micex Index lost 2.3 percent and Hungary’s Budapest Stock Exchange Index fell 2.5 percent while the country’s currency, the forint, slid 0.6 percent to a two-month low against the euro. Euro Weakens The euro slid less than 0.1 percent to $1.3171. It dropped 1.6 percent yesterday, the biggest one-day decline since April 27, 2009. The pound weakened 0.7 percent versus the dollar and 0.6 percent against the euro after former Bank of England policy maker Timothy Besley said the U.K. economy remains in a “fragile state.” Treasuries were little changed, with the 10-year yield at 3.68 percent, before the government sells $42 billion of five- year notes today. The yield on the 10-year German bunds rose 3 basis points to 2.97 percent, according to Bloomberg generic data. The Federal Open Market Committee’s two-day meeting concludes today in Washington. It is expected to keep interest rates at zero to 0.25 percent in a statement at about 2:15 p.m. Nickel for delivery in three months slumped as much as 4.5 percent to $24,750 a metric ton on the London Metal Exchange. Copper and aluminum also declined. Europe will account for about a fifth of global demand for copper this year and about a quarter of nickel consumption, Barclays Capital estimates. Crude oil fell 0.9 percent to $81.68 a barrel, after U.S. stockpiles rose to their highest since May 2009. To contact the reporter on this story: David Merritt in London on dmerritt1@bloomberg.net

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Ram Power Announces Resignation and Appointment at Its Board of Directors

April 28, 2010

RENO, NV–(Marketwire – April 28, 2010) –  Ram Power, Corp. ( TSX : RPG ) (“Ram Power” or the “Company”), today announced that Mr. Robert R. Gilmore is stepping down from Ram Power’s Board of Directors, effective immediately. He is replaced by Dr. Mario Arana who previously served as Honorary Member of the Board for Ram Power. 

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KANA Announces Appointment of Chip Greer as Senior Vice President of Sales

April 28, 2010

Company Consolidates Sales Operations Under Industry Veteran

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Ikanos Appoints Diosdado Banatao as Executive Chairman

April 28, 2010

Michael Gulett Resigns as President and CEO; Company Updates First Quarter Guidance

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AUD/USD Classical 04.28

April 28, 2010

AUD/USD Classical 04.28

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EUR/CHF Classical 04.28

April 28, 2010

EUR/CHF Classical 04.28

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EUR/JPY Classical 04.28

April 28, 2010

EUR/JPY Classical 04.28

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EUR/USD Classical 04.28

April 28, 2010

EUR/USD Classical 04.28

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GBP/JPY Classical 04.28

April 28, 2010

GBP/JPY Classical 04.28

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GBP/USD Classical 04.28

April 28, 2010

GBP/USD Classical 04.28

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Australian inflation rises to 2.9% in Q1

April 28, 2010

Australian inflation rises to 2.9% in Q1

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NZD/USD Classical 04.28

April 28, 2010

NZD/USD Classical 04.28

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Adelaide: Otway Petroleum Project weekly drilling report

April 28, 2010

Adelaide: Otway Petroleum Project weekly drilling report

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Mexican economy grows 3.4% in February

April 28, 2010

Mexican economy grows 3.4% in February

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Major currencies trying to offset yesterday’s drop

April 28, 2010

Major currencies trying to offset yesterday’s drop

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Scandi Daily 04.28

April 28, 2010

Scandi Daily 04.28

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USD Graphic Rewind 04.28

April 28, 2010

USD Graphic Rewind 04.28

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India arrests diplomat for spying

April 28, 2010

India arrests diplomat for spying

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Opening Comment 04.28

April 28, 2010

Opening Comment 04.28

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Western Australia seeks to diversify trade basket with GCC

April 28, 2010

Western Australia seeks to diversify trade basket with GCC

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GEMS Education receives ISO certification for IT infrastructure

April 28, 2010

GEMS Education receives ISO certification for IT infrastructure

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ACCA results show rise in demand for accountants

April 28, 2010

ACCA results show rise in demand for accountants

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Australian consumer prices incline in Q1

April 28, 2010

Australian consumer prices incline in Q1

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Dollar Catches Flight-to-Quality Flows on European Downgrades for Biggest Gain in 5 Weeks

April 28, 2010

Dollar Catches Flight-to-Quality Flows on European Downgrades for Biggest Gain in 5 Weeks

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Prime Asset Management Completes Quarterly Review of the 324 Stocks Traded on the Egyptian Stock Exchange

April 28, 2010

Prime Asset Management Completes Quarterly Review of the 324 Stocks Traded on the Egyptian Stock Exchange

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Lease Up/Lease Down (Apr. 25 – May 1): SEC Expands, Fuddruckers Cuts Calories

April 28, 2010

CoStar compiles news of corporate expansions, relocations, extensions, closures, layoffs, lease cancellations and mergers in the weekly Lease Up/Lease Down news report, a concise read keeping you updated on major corporate moves affecting commercial…

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BOJ Board Said to Increase Resistance to More Stimulus as Economy Recovers

April 28, 2010
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Trichet Travels to Berlin on Diplomatic Mission as Merkel Nears Greek Vote

April 28, 2010
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Blackstone Hires Former Client Huang From AIG for Corporate Advisory Unit

April 28, 2010
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