a-will-probably

Canon Says China to Be Top Camera Market in 2015, Will Double Stores There

by on March 10, 2010

By Mariko Yasu and Maki Shiraki March 10 (Bloomberg) — Canon Inc. expects China’s camera market to become the world’s largest as early as 2015, overtaking the U.S., its head of the business said. Canon, the world’s biggest camera maker, is doubling the number of outlets and boosting its marketing workforce in the Asian nation to tap the company’s fastest-growing major market, Masaya Maeda , said in an interview yesterday in Tokyo. “The China market is very vibrant and will likely drive worldwide growth in the coming years,” he said. The maker of the EOS and PowerShot models forecasts sales volume will rise 10 percent in China this year, while growth in developed nations will likely remain small, Maeda said without elaborating. Canon’s global camera sales will increase 6.6 percent to 25.7 million units in the 12 months ending Dec. 31, the company projected in January. China accounted for about 15 percent of Canon’s camera sales in 2009, he said. “China is going to be a big opportunity for Canon as affluent people there favor Japanese products as status symbols,” said Tetsuya Wadaki , a Tokyo-based analyst at Nomura Holdings Inc. Suppliers including Nikon Corp. and Samsung Electronics Co. are also looking to expand there and competition will likely intensify, he said. The U.S. is projected to be the largest camera market this year with 34.6 million units estimated to ship, according to researcher IDC . That’s 27 percent higher than the 27.3 million sets forecast to be delivered to countries in the Asia Pacific region including China, India, Hong Kong and Australia, IDC said in September. Shipments in Western Europe will probably be 28.5 million units in 2010, according to the researcher. Asia Camera Shipments The value of digital camera exports in Asia excluding Japan more than doubled to 30.1 billion yen ($334 million) in January from a year earlier, overtaking Europe and North America to become the world’s biggest market, according to the Camera & Imaging Products Association , which tracks data for 14 camera makers. Worldwide shipments rose 59 percent, the Tokyo-based industry group said. Canon rose 0.9 percent to 4,000 yen as of 1:07 p.m. in Tokyo trading, extending its gain this year to 2.2 percent. The benchmark Nikkei 225 Stock Average declined 0.1 percent. Canon was the market leader in China with a 28 percent share in 2008, while Sony Corp. ranked second and Samsung Electronics third, Beijing-based researcher CCID Consulting Co. said March 19 last year. Camera shipments to China will probably increase to about 12 million units in 2011 from 9.2 million in 2008, CCID said at the time. Canon boosted the number of employees at its Beijing-based marketing unit by 10 percent to 1,421 last year, Maeda said. The company plans to almost double the number of its servicing outlets in the country to 25 by the end of this year, he said. “China will probably match the size of the U.S. and Europe in five to six years” after maintaining an annual growth rate of about 10 percent, Maeda said. The average selling price of cameras will likely drop further this year by “several percentage points,” Maeda said. “We still have room to cut our expenses” to cope with the declining prices, he said. The company, which posted its lowest profit in a decade last year, is forecasting net income will rise 52 percent to 200 billion yen in 2010 as the global economic recovery revives demand for cameras and office equipment. To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net .

See the article here:
Canon Says China to Be Top Camera Market in 2015, Will Double Stores There

Tagged as: , , , , , , , , ,

{ 0 comments }

Canada Keeps Benchmark Rate at 0.25%, Says Inflation Rate Above Forecast

by on March 2, 2010

By Greg Quinn March 2 (Bloomberg) — The Bank of Canada kept its benchmark interest rate at a record low today, and said that inflation and economic output have been higher than policy makers expected. The target rate for overnight loans between commercial banks remained at 0.25 percent, where it’s been since April, as predicted by all 22 economists surveyed by Bloomberg. The bank also repeated a pledge to leave it unchanged through June unless the “current” inflation outlook shifts. The economy grew at a 5 percent pace in the fourth quarter, Statistics Canada said yesterday, faster than the bank’s Jan. 21 prediction of 3.3 percent. Inflation has also accelerated close to the central bank’s 2 percent target. “Core inflation has been slightly firmer than projected, the result of both transitory factors and the higher level of economic activity,” the Ottawa-based bank said in a statement. Fourth quarter growth came from “vigorous domestic spending and further recovery in exports.” The bank said the expansion, which was the fastest in almost a decade, pushed Canada’s output to a level “slightly higher than the Bank had projected.” Governor Mark Carney has said there must be a transition towards private expenditures instead of government stimulus to create a sustained recovery. The bank’s statement dropped a reference made in January to inflation risks being “tilted slightly to the downside.” The statement also omitted a reference to the central bank having “flexibility” even with the key interest rate close to zero. Sending a Message “It doesn’t take huge changes in words to send a message,” said Doug Porter , deputy chief economist with BMO Capital Markets in Toronto before the announcement. “They have to slowly but surely set the landscape for rate hikes.” Canada’s annual inflation rate was 1.9 percent in January, the fastest pace in more than a year, Statistics Canada said Feb. 18. The so-called core inflation rate , which excludes gasoline and seven other volatile items, rose 2 percent, underscoring what Carney has called “stickiness” in that rate. Carney has also said Canada’s economy will operate with “slack” through the middle of 2011. Growth will be curbed by the Canadian dollar’s strength and a low volume of U.S. orders, the bank reiterated today. Canada’s dollar appreciated 25 percent against the U.S. dollar over the past 12 months to about 96.6 U.S. cents. “It’s better to move sooner than later but be less aggressive,” said Yanick Desnoyers , assistant chief economist at National Bank Financial in Montreal. He predicts an April rate increase. Spare Capacity Statistics Canada also revised its earlier growth figures to show the country’s first recession since 1992 was deeper than thought, with a 7 percent annualized contraction in the first quarter of last year. The capacity left in the economy means the bank can wait until after its June commitment ends to raise rates by a quarter point, Porter said. “It would take an awful lot to push the bank into an earlier move,” he said. The bank should raise its key lending rate in half-point moves after June, University of Western Ontario professor Michael Parkin said in a Feb. 23 paper. Taking the rate to 3.75 percent by mid-2011 is needed to keep inflation in check as an economic recovery is “taking hold,” Parkin wrote for the C.D. Howe Institute, a research group chaired by former Bank of Canada Governor David Dodge . The Bank of Canada will probably raise the key rate to 0.75 percent in the third quarter and to 1.25 percent by the end of the year, according to the median forecast of economists surveyed by Bloomberg News. A separate survey for the U.S. shows economists don’t expect the Federal Reserve to raise its benchmark rate to 0.75 percent until the fourth quarter. To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net .

Continued here:
Canada Keeps Benchmark Rate at 0.25%, Says Inflation Rate Above Forecast

Tagged as: , , , , , , , , , , , ,

{ 0 comments }

Miller Grabs First Olympic Gold; U.S. Beats Canada in Hockey

February 22, 2010

By Erik Matuszewski Feb. 22 (Bloomberg) — U.S. skier Bode Miller began the day at the Vancouver Winter Games by winning his first Olympic gold medal. The U.S. men’s ice hockey team finished it off by ending a 50-year winless drought against Canada. Miller, 32, claimed his third medal of the games yesterday in the men’s super-combined, less than a year after he considered retiring from the sport. “That’s what means a lot to me — to do it this way, at this point in my career, in the Olympics, in the super- combined in particular,” Miller said during a news conference in Whistler, British Columbia. “It was a challenge, and realizing that challenge is unbelievable.” The U.S. beat Canada 5-3 in a preliminary round game in the men’s hockey competition at Canada Hockey Place, where some tickets sold for as much as $5,000. The previous Olympic win for the U.S. over Canada came in 1960 in Squaw Valley, California, 38 years before the National Hockey League allowed its players to compete in the Games. “We know we can beat anybody now,” U.S. defenseman Brian Rafalski said after scoring two goals against the hosts and gold-medal favorites. “It’s a huge step for (our) confidence.” The U.S. finished the preliminary round undefeated in three games and Canada lost for the first time in Vancouver. The American team gets a bye into the quarterfinals of the medal round, while Canada will probably face Germany tomorrow. U.S. Tops Medals Miller’s gold was the eighth medal in Alpine events for the U.S., which tops the Winter Games standings with 23 overall, five better than Germany. The most successful Alpine skier in U.S. history with 32 World Cup victories, Miller won two silver medals at the 2002 Salt Lake City Games. He failed to win a medal in any of his five races at the 2006 Turin Games and took a hiatus from the sport while considering retirement last year. Miller decided to return to the U.S. ski team and won a silver medal and a bronze in his first two races of the Vancouver Games before yesterday’s gold in the super- combined, which features a downhill run and a slalom run. Miller had an overall time of 2 minutes, 44.92 seconds to beat Ivica Kostelic , 30, of Croatia and Silvan Zurbriggen, 28, of Switzerland. Miller had been seventh after the downhill portion of the event. “It’s a great feeling,” said Miller, whose five career Olympic medals are the most by a U.S. Alpine skier. “This is how I used to ski when I was little, the way I skied when I first came into the World Cup.” The U.S. has seven gold medals in Vancouver, one more than Germany, which won two events yesterday. Germany’s Gold Andre Lange captured his fourth Olympic gold medal by winning the two-man bobsled with brakeman Kevin Kuske , while Magdalena Neuner claimed her second gold of the Games in the women’s biathlon 12.5-kilometer mass sprint. Lange, 36, and Kuske, 31, gave Germany its third straight Olympic title in two-man bobsled. Ireen Wust, 23, of the Netherlands won the women’s 1,500-meter speedskating event, Russia’s Evgeny Ustyugov, 24, won the men’s 15-kilometer biathlon, and Switzerland’s Michael Schmid, 25, won the debut gold medal of the men’s ski cross. Four medal events are scheduled for today, including the conclusion of the ice dance competition. Gold medals also will be presented in team ski jumping and men’s and women’s cross-country skiing team sprints. Through nine days of competition at the Vancouver Games, Norway is third to the U.S. and Germany in total medals and gold medals, with 12 and five respectively. Canada has nine medals, including four golds. To contact the reporter on this story: Erik Matuszewski in Whistler, British Columbia, at matuszewski@bloomberg.net

Read the full article →

Miller Grabs First Olympic Gold; U.S. Beats Canada in Hockey

February 22, 2010

By Erik Matuszewski Feb. 22 (Bloomberg) — U.S. skier Bode Miller began the day at the Vancouver Winter Games by winning his first Olympic gold medal. The U.S. men’s ice hockey team finished it off by ending a 50-year winless drought against Canada. Miller, 32, claimed his third medal of the games yesterday in the men’s super-combined, less than a year after he considered retiring from the sport. “That’s what means a lot to me — to do it this way, at this point in my career, in the Olympics, in the super- combined in particular,” Miller said during a news conference in Whistler, British Columbia. “It was a challenge, and realizing that challenge is unbelievable.” The U.S. beat Canada 5-3 in a preliminary round game in the men’s hockey competition at Canada Hockey Place, where some tickets sold for as much as $5,000. The previous Olympic win for the U.S. over Canada came in 1960 in Squaw Valley, California, 38 years before the National Hockey League allowed its players to compete in the Games. “We know we can beat anybody now,” U.S. defenseman Brian Rafalski said after scoring two goals against the hosts and gold-medal favorites. “It’s a huge step for (our) confidence.” The U.S. finished the preliminary round undefeated in three games and Canada lost for the first time in Vancouver. The American team gets a bye into the quarterfinals of the medal round, while Canada will probably face Germany tomorrow. U.S. Tops Medals Miller’s gold was the eighth medal in Alpine events for the U.S., which tops the Winter Games standings with 23 overall, five better than Germany. The most successful Alpine skier in U.S. history with 32 World Cup victories, Miller won two silver medals at the 2002 Salt Lake City Games. He failed to win a medal in any of his five races at the 2006 Turin Games and took a hiatus from the sport while considering retirement last year. Miller decided to return to the U.S. ski team and won a silver medal and a bronze in his first two races of the Vancouver Games before yesterday’s gold in the super- combined, which features a downhill run and a slalom run. Miller had an overall time of 2 minutes, 44.92 seconds to beat Ivica Kostelic , 30, of Croatia and Silvan Zurbriggen, 28, of Switzerland. Miller had been seventh after the downhill portion of the event. “It’s a great feeling,” said Miller, whose five career Olympic medals are the most by a U.S. Alpine skier. “This is how I used to ski when I was little, the way I skied when I first came into the World Cup.” The U.S. has seven gold medals in Vancouver, one more than Germany, which won two events yesterday. Germany’s Gold Andre Lange captured his fourth Olympic gold medal by winning the two-man bobsled with brakeman Kevin Kuske , while Magdalena Neuner claimed her second gold of the Games in the women’s biathlon 12.5-kilometer mass sprint. Lange, 36, and Kuske, 31, gave Germany its third straight Olympic title in two-man bobsled. Ireen Wust, 23, of the Netherlands won the women’s 1,500-meter speedskating event, Russia’s Evgeny Ustyugov, 24, won the men’s 15-kilometer biathlon, and Switzerland’s Michael Schmid, 25, won the debut gold medal of the men’s ski cross. Four medal events are scheduled for today, including the conclusion of the ice dance competition. Gold medals also will be presented in team ski jumping and men’s and women’s cross-country skiing team sprints. Through nine days of competition at the Vancouver Games, Norway is third to the U.S. and Germany in total medals and gold medals, with 12 and five respectively. Canada has nine medals, including four golds. To contact the reporter on this story: Erik Matuszewski in Whistler, British Columbia, at matuszewski@bloomberg.net

Read the full article →

China May Raise Yuan Value by 5% to Cool Economy, Goldman’s O’Neill Says

January 24, 2010

By Zijing Wu Jan. 23 (Bloomberg) — China will probably let its currency appreciate a one-time 5 percent and hike interest rates to cool the economy and combat surging inflation pressures, Goldman Sachs Group Inc. Chief Economist Jim O’Neill said. The Chinese government may allow the yuan to have “a bigger one-off move than people talk about, at least 5 percent, maybe more,” O’Neill said in an interview today at the London School of Economics. “They may also consider having a wide band to let it move more frequently on the daily basis to stop speculative players.” China’s economy rebounded stronger than anticipated in the fourth quarter, and the inflation rate accelerated to a 13-month high of 1.9 percent in December, igniting speculation the government will abandon the yuan peg to avoid the economy from overheating. China has kept a lid on its currency since July 2008 after it strengthened 21 percent against the dollar over the previous three years. “Part of the idea of doing these things is to surprise people so we are not going to get any hints of it happening,” said O’Neill. “We’ll just wake up on an unpredictable day and see it happen.” Besides loosening controls on the exchange rate, Beijing will also hike interest rates soon, according to O’Neill. “It will definitely happen, and it could happen any day,” he said. China’s yuan traded at 6.8269 per dollar in the spot market as of 3 p.m. in London. To contact the reporters on this story: Zijing Wu in London zwu17@bloomberg.net ;

Read the full article →

China May Raise Value of Yuan 5% in One-Time Move, Goldman’s O’Neill Says

January 23, 2010

By Zijing Wu Jan. 23 (Bloomberg) — China will probably let its currency appreciate a one-time 5 percent and hike interest rates to cool the economy and combat surging inflation pressures, Goldman Sachs Group Inc. Chief Economist Jim O’Neill said. The Chinese government may allow the yuan to have “a bigger one-off move than people talk about, at least 5 percent, maybe more,” O’Neill said in an interview today at the London School of Economics. “They may also consider having a wide band to let it move more frequently on the daily basis to stop speculative players.” China’s economy rebounded stronger than anticipated in the fourth quarter, and the inflation rate accelerated to a 13-month high of 1.9 percent in December, igniting speculation the government will abandon the yuan peg to avoid the economy from overheating. China has kept a lid on its currency since July 2008 after it strengthened 21 percent against the dollar over the previous three years. “Part of the idea of doing these things is to surprise people so we are not going to get any hints of it happening,” said O’Neill. “We’ll just wake up on an unpredictable day and see it happen.” Besides loosening controls on the exchange rate, Beijing will also hike interest rates soon, according to O’Neill. “It will definitely happen, and it could happen any day,” he said. China’s yuan traded at 6.8269 per dollar in the spot market as of 3 p.m. in London. To contact the reporters on this story: Zijing Wu in London zwu17@bloomberg.net ;

Read the full article →

Democrats May Drop Government-Run Health Program to Get Legislation Passed

January 5, 2010

By Kristin Jensen and Terrence Dopp Jan. 5 (Bloomberg) — U.S. Democrats will likely drop the idea of setting up a new government-run insurance program as they try to quickly resolve differences between House and Senate health-care bills, party members in both chambers said. Democratic leaders may also bypass a House-Senate conference, the normal route for reconciling legislation, in favor of more informal talks to wrap up in a “few weeks,” said New Jersey Representative Frank Pallone , who heads the House Energy and Commerce panel’s health subcommittee . “I don’t think the public option survives,” Pallone told state lawmakers in Trenton yesterday. “There is nowhere near 60 votes on that.” Democrats control 60 votes in the Senate, exactly the number needed to pass major legislation. Not all the party’s lawmakers support the idea of a new insurance program, or public option, and Senate Majority Leader Harry Reid , a Nevada Democrat, had to jettison it from the measure his chamber passed Dec. 24. It’s “not likely” the public option will make the final bill, said Illinois Senator Dick Durbin , the No. 2 Senate Democrat. While leading Democrats including House Speaker Nancy Pelosi have championed the idea as a cost-saving measure, critics said it would unfairly tilt the market against private insurers such as Indianapolis-based WellPoint Inc. “The Senate has pushed this to the limit of 60 votes,” Durbin said yesterday. “We have to be careful that whatever we change doesn’t jeopardize that 60-vote margin.” Compromise Timing House and Senate negotiators are already discussing how to combine the bills and may reach an agreement “by the end of the month, if we’re fortunate, or the first part of next month,” Durbin told reporters in Chicago. One goal is to finish before President Barack Obama’s State of the Union address in late January or early February. After aiming for bipartisan votes in each chamber by August, Democrats managed to pass the House bill on Nov. 7 with one Republican’s backing. No Republicans supported the Senate plan. The overall legislation is designed to extend coverage to tens of millions of uninsured Americans while curbing rising medical costs . House and Senate Democrats also have to reach agreement on how to pay for the measure and how strictly to bar federal money for abortion. Tax Battle Both the House and Senate would require Americans to get insurance or pay a penalty, offer expanded government aid and online purchasing exchanges to help people buy policies, and impose new requirements that insurers accept customers regardless of pre-existing conditions. The House opted to use a surtax on the wealthiest Americans to pay for its 10-year, $1 trillion bill. Pallone said that idea will probably fail in talks with the Senate, which would partially fund its bill through a tax on high-end insurance plans. That plan that has drawn fire from labor unions. Lawmakers will also forge some compromise that satisfies both sides of the abortion debate and prohibits the use of federal funds for the procedure, Pallone said. “Everyone understands we can’t have federal dollars used in any way, or subsidies in any way, to pay for abortions,” said Pallone, an abortion-rights supporter. Pelosi, of California, is scheduled to confer today with the heads of the three committees with jurisdiction over health care to discuss strategy. Durbin said he’s not “assuming a thing,” and said leaders would work hard to keep the 60 votes controlled by Senate Democrats together. “We’ll never have another chance like this in my political lifetime,” Durbin said. “This is it.” To contact the reporters on this story: Kristin Jensen in Washington at kjensen@bloomberg.net ; Terrence Dopp in Trenton at tdopp@bloomberg.net

Read the full article →

Lawmakers See Quick Health-Care Deal Without Public Option, Formal Talks

January 4, 2010

By Kristin Jensen and Terrence Dopp Jan. 5 (Bloomberg) — U.S. Democrats will likely drop the idea of setting up a new government-run insurance program as they try to quickly resolve differences between House and Senate health-care bills, party members in both chambers said. Democratic leaders may also bypass a House-Senate conference, the normal route for reconciling legislation, in favor of more informal talks to wrap up in a “few weeks,” said New Jersey Representative Frank Pallone , who heads the House Energy and Commerce panel’s health subcommittee . “I don’t think the public option survives,” Pallone told state lawmakers in Trenton yesterday. “There is nowhere near 60 votes on that.” Democrats control 60 votes in the Senate, exactly the number needed to pass major legislation. Not all the party’s lawmakers support the idea of a new insurance program, or public option, and Senate Majority Leader Harry Reid , a Nevada Democrat, had to jettison it from the measure his chamber passed Dec. 24. It’s “not likely” the public option will make the final bill, said Illinois Senator Dick Durbin , the No. 2 Senate Democrat. While leading Democrats including House Speaker Nancy Pelosi have championed the idea as a cost-saving measure, critics said it would unfairly tilt the market against private insurers such as Indianapolis-based WellPoint Inc. “The Senate has pushed this to the limit of 60 votes,” Durbin said yesterday. “We have to be careful that whatever we change doesn’t jeopardize that 60-vote margin.” Compromise Timing House and Senate negotiators are already discussing how to combine the bills and may reach an agreement “by the end of the month, if we’re fortunate, or the first part of next month,” Durbin told reporters in Chicago. One goal is to finish before President Barack Obama’s State of the Union address in late January or early February. After aiming for bipartisan votes in each chamber by August, Democrats managed to pass the House bill on Nov. 7 with one Republican’s backing. No Republicans supported the Senate plan. The overall legislation is designed to extend coverage to tens of millions of uninsured Americans while curbing rising medical costs . House and Senate Democrats also have to reach agreement on how to pay for the measure and how strictly to bar federal money for abortion. Tax Battle Both the House and Senate would require Americans to get insurance or pay a penalty, offer expanded government aid and online purchasing exchanges to help people buy policies, and impose new requirements that insurers accept customers regardless of pre-existing conditions. The House opted to use a surtax on the wealthiest Americans to pay for its 10-year, $1 trillion bill. Pallone said that idea will probably fail in talks with the Senate, which would partially fund its bill through a tax on high-end insurance plans. That plan that has drawn fire from labor unions. Lawmakers will also forge some compromise that satisfies both sides of the abortion debate and prohibits the use of federal funds for the procedure, Pallone said. “Everyone understands we can’t have federal dollars used in any way, or subsidies in any way, to pay for abortions,” said Pallone, an abortion-rights supporter. Pelosi, of California, is scheduled to confer today with the heads of the three committees with jurisdiction over health care to discuss strategy. Durbin said he’s not “assuming a thing,” and said leaders would work hard to keep the 60 votes controlled by Senate Democrats together. “We’ll never have another chance like this in my political lifetime,” Durbin said. “This is it.” To contact the reporters on this story: Kristin Jensen in Washington at kjensen@bloomberg.net ; Terrence Dopp in Trenton at tdopp@bloomberg.net

Read the full article →

Health-Care Bill’s `Public Option’ Is Likely Dead, U.S. Party Leaders Say

January 4, 2010

By Kristin Jensen and Terrence Dopp Jan. 4 (Bloomberg) — Democrats are likely to abandon the idea of setting up a new government-run insurance program as part of final health-care legislation being crafted by the U.S. House and Senate, top party members in both chambers said. “I don’t think the public option survives,” New Jersey Representative Frank Pallone , the chairman of the House Energy and Commerce panel’s health subcommittee , told state lawmakers in Trenton today. “There is nowhere near 60 votes on that.” Democrats control 60 votes in the Senate, exactly the number needed to pass major legislation. Not all the party’s lawmakers support the idea of a new insurance program, or public option, and Senate Majority Leader Harry Reid had to jettison it from his chamber’s measure, which passed Dec. 24. It’s “not likely” the public option will make the final bill, said Illinois Senator Dick Durbin , the No. 2 Senate Democrat. While House Speaker Nancy Pelosi and other leading Democrats have championed the idea, critics said it would unfairly tilt the market against private insurers such as Indianapolis-based WellPoint Inc. “The Senate has pushed this to the limit of 60 votes,” Durbin told reporters in Chicago today. “We have to be careful that whatever we change doesn’t jeopardize that 60-vote margin.” Both Pallone and Durbin said Democrats are seeking a quick compromise. House and Senate negotiators already are discussing how to combine the bills and may reach an agreement “by the end of the month, if we’re fortunate, or the first part of next month,” Durbin said. Bypassing Conference Pallone said he expects Democratic leaders to bypass a formal House-Senate conference, the normal route for reconciling legislation, in favor of more informal talks. “I believe this will be wrapped up within the next few weeks,” he said. One goal is to finish before President Barack Obama’s State of the Union address in late January or early February. House and Senate leaders originally planned to pass bills by August. The House passed its measure on Nov. 7 with the backing of one Republican. No Republicans supported the Senate bill. The overall legislation is designed to extend coverage to tens of millions of uninsured Americans while curbing rising medical costs . House and Senate Democrats also have to reach agreement on how to pay for the measure and how strictly to bar federal money for abortion. No Surtax Both the House and Senate would require Americans to get insurance or pay a penalty, offer expanded government aid and online purchasing exchanges to help buy policies, and impose new requirements that insurers accept customers regardless of pre- existing conditions. The House opted to use a surtax on the wealthiest Americans to pay for its 10-year, $1 trillion bill. Pallone said that idea will probably fail in talks with the Senate, which intends to tax high-end insurance plans and raise money in other ways. Lawmakers will also find some compromise that satisfies both sides of the abortion debate and prohibits the use of federal funds for the procedure, Pallone said. “Everyone understands we can’t have federal dollars used in any way, or subsidies in any way, to pay for abortions,” said Pallone, an abortion-rights supporter. Pelosi is scheduled tomorrow to confer with the heads of the three committees with jurisdiction over health care to discuss strategy. Durbin said he’s not “assuming a thing” and said leaders would work hard to keep the 60 votes controlled by Senate Democrats together. “We’ll never have another chance like this in my political lifetime,” Durbin said. “This is it.” To contact the reporters on this story: Kristin Jensen in Washington at kjensen@bloomberg.net ; Terrence Dopp in Trenton at tdopp@bloomberg.net

Read the full article →

Asia’s Start-up Hedge Funds Beat Peers, Boosting Growth Prospects For 2010

December 21, 2009

By Tomoko Yamazaki and Komaki Ito Dec. 22 (Bloomberg) — Asian start-up hedge funds have returned an average 22 percent this year, beating global peers and boosting their chances of attracting investors in 2010. Galaxy China Deep Value Fund and Wisdom of Japan Fund are among new offerings measured by Singapore-based hedge-fund consultant GFIA Pte that helped start-ups outperform an 18 percent average gain through November for the Eurekahedge Hedge Fund Index of more than 2,000 funds globally. The outperformance may help the region’s start-ups overcome investor reticence that curbed growth in assets managed this year. “The continuing challenge throughout 2010 for start-up hedge funds will be raising capital, however, it is generally expected that it will be more accessible than in 2009,” said Skip Hashimoto , the Japan representative at Ogier Fiduciary Services in Tokyo, which provides corporate services to hedge funds. “Funds of funds based in this region are aggressively seeking out new Asia-based start-up opportunities.” Managers of Asia-focused new funds raised just $3.06 billion through November this year, compared with $20 billion attracted by global start-ups and $3.8 billion by Asian start- ups in 2008, according to Eurekahedge Pte . The year-to-October average return of 27 start-up hedge funds in Asia excluding Japan that commenced since September 2008 and have more than six months of track record totaled 29 percent, according to data provided by GFIA. For Japan, 12 new funds yielded an average return of 6.5 percent, the firm said. Asia Comeback Among the strategies likely to be favored by new hedge funds next year are event driven, which takes advantage of corporate events such as mergers and acquisitions, and trading related, with a focus on investing across Asia, according to GFIA. Geographically, Greater China-focused funds are likely to be prevalent, reflecting demand for wagers on China, the world’s fastest-growing major economy. Galaxy Asset Management (HK) Ltd. , which invests in Chinese equities, manages one of this year’s best-performing start-ups. Its $30 million Galaxy China Deep Value Fund has quadrupled since the September 2008 inception, investing in “deep value stocks that got killed in the financial crisis,” said Joe Chan , a former Morgan Stanley managing director and Galaxy founder. In Japan, Epic Partners Investments Co. ’s Wisdom of Japan Fund, which employs a so-called market-neutral strategy, has returned more than 10 percent through November since inception in March, according to the firm. The fund, which is run by Tadashi Mukai , grew in size to 2.5 billion yen ($27 million) from 400 million yen at the start, according to Mukai. Under the Radar The fund has raised money mainly through Japanese high-net- worth individuals and pension funds and expects assets to increase to 4 billion yen in January, said Mukai in a telephone interview on Dec. 9. Mukai was the top performer in 2007 among Japan-focused funds that employ the strategy that seeks to make money regardless of the market’s direction. Akito Fund, a Japan-focused hedge fund set up by former UBS AG bankers, has returned more than 26 percent since its July start and has managed to boost assets to 7.5 billion yen from 1.4 billion yen at inception by raising money mainly from foreign investors, according to Koichiro Yamaguchi and Tetsuya Hamano who run the fund. “Managers might not like the idea of launching with a smaller amount of money, but the advantage of that is that you find out all your mistakes when fewer people are looking,” said Peter Douglas , principal of GFIA. As existing funds take in less money to limit their trading capacity in the wake of global credit crisis, start-ups are set to benefit from investors seeking to take a slice of Asia’s economic growth, Douglas said. Lower Closes Brevan Howard Asset Management LLP, Europe’s largest hedge- fund firm, limited the flow of money into three funds as client assets approached last year’s high, according to people familiar with the matter. Paul Tudor Jones’s Tudor BVI and Lansdowne Partners LP’s $9.3 billion Lansdowne UK funds restricted inflows this year after replacing money pulled by investors in 2008. In Asia, Riley Paterson Investment Management Pte said it closed its Asian hedge fund to investors after assets under management swelled 15-fold to $300 million. Economic growth in Asia will probably accelerate to 5.8 percent next year from 2.8 percent this year, the International Monetary Fund said in October. That compares with forecast growth of 1.25 percent in 2010 in the Group of Seven economies. “You’ve got managers closing at much lower levels, you’ve got a lot more people coming back to the region, and a wave of money flowing back to the Asian hedge-fund industry, which is good news for start-ups,” Douglas said. “So long as they produce reasonable performance numbers, their life will get much easier through next year or by the end of next year and most of the funds will be pleased with themselves that they launched when they did.” To contact the reporters on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net ; Komaki Ito in Tokyo at kito@bloomberg.net

Read the full article →

Stevens’s `Timid’ Talk May Herald Largest Australian Rate Rise Since 2000

October 15, 2009

By Jacob Greber Oct. 16 (Bloomberg) — Australian central bank Governor Glenn Stevens’s view that he can’t be “too timid” in raising borrowing costs is stoking speculation the benchmark interest rate will be increased next month by the most in a decade. Experience “counsels against” an approach where policy makers who cut rates rapidly in response to a threat become “too timid to lessen that stimulus in a timely way when the threat has passed,” Stevens said in Perth yesterday. The comments pushed Australia’s currency to a 14-month high and prompted investors to triple bets policy makers will increase the overnight cash rate target on Nov. 3 by half a percentage point to 3.75 percent. Stevens became the first Group of 20 central banker to increase borrowing costs when he unexpectedly boosted the rate last week by a quarter point. “Stevens has put 50 basis-point moves on the table,” said Matthew Johnson , an interest-rate strategist at UBS AG in Sydney. “The safest time to raise rates quickly is when you know they are at the wrong level, and this is the first time a recession has ended with so little spare capacity. “It’s not going to be long before the economy is running at full pelt again.” Investors are certain Stevens will raise rates at least another quarter point next month as consumer confidence rises and unemployment falls, according to Bloomberg calculations based on interbank futures on the Sydney Futures Exchange. Chances of a half-point increase next month rose to 36 percent from 10 percent prior to Stevens’s speech and 2 percent on Oct. 14, the futures showed at 9:09 a.m. today. Currency Rises The Australian dollar rose to as high as 92.11 U.S. cents after yesterday’s speech, the strongest since August 2008, and traded at 92.09 cents at 9:20 a.m. in Sydney today. The two-year government bond yield jumped to 4.81 percent at 9:20 a.m. today from 4.63 percent before yesterday’s speech. “I’ve said it consistently, interest rates will go up because they’ve been brought to emergency lows,” Prime Minister Kevin Rudd told Melbourne radio station 3AW today. “I don’t see any point whatsoever in trying to be cute with people about that.” Stevens slashed borrowing costs by a record 4.25 percentage points between September 2008 and April to cushion the nation’s economy against the global financial crisis. His cuts included 1 percentage point reductions in October, December and February, the biggest moves since 1992. ‘Too Timid’ “If we were prepared to cut rates rapidly, to a very low level, in response to a threat but then were too timid to lessen that stimulus in a timely way when the threat had passed, we would have a bias in our monetary policy framework,” Stevens said. “Experience here and elsewhere counsels against that approach.” “The governor has made it clear he’s keen to get rates back to normal quickly,” said RBS Group Australia Ltd. Chief Economist Kieran Davies , who is tipping a half-point increase next month. The last time Australian policy makers raised borrowing costs by that much was in February 2000. Davies is the only one of 19 economists surveyed by Bloomberg after Stevens’s speech to tip a half point increase. Sixteen expect a quarter-point move and two predict no change. Australia is only the second country after Israel to raise borrowing costs since the height of the global financial crisis. Israel isn’t a member of the G-20. U.S. Federal Reserve Chairman Ben S. Bernanke said last week he and his colleagues at the Fed “believe that accommodative policies will likely be warranted for an extended period.” Other Asian central banks may follow Stevens in raising rates. ‘Tightening Wave’ “The region could be at the leading edge of the monetary tightening wave, though we believe the pace will be measured and modest,” Lee Heng Guie , chief economist at CIMB Investment Bank Bhd. in Kuala Lumpur, part of Malaysia’s second-largest banking group, said yesterday in a note to clients. “India and Korea will probably be the first among the Asian central banks to raise rates in the first half of 2010.” Evidence is mounting that Australia’s economy, which skirted the global recession, is strengthening. Recent reports show consumer confidence rose this month to the highest level in more than two years, the jobless rate unexpectedly fell to 5.7 percent in September from 5.8 percent in August, the first drop in five months, and retail sales gained. Gross domestic product rose 1 percent in the first half of this year as consumers increased spending after the government distributed more than A$20 billion ($18 billion) in cash to households. The government is spending another A$22 billion on roads, railways and schools. “The period of greatest weakness in the Australian economy is probably past,” Stevens said yesterday. “Barring another serious international setback, the economy is likely to continue on a path of gradual expansion during 2010.” To contact the reporter for this story: Jacob Greber in Perth at jgreber@bloomberg.net

Read the full article →

Typhoon Parma Hovers Over Philippines, Boosting Landslide, Flood Threat

October 4, 2009

By Francisco Alcuaz Jr. Oct. 5 (Bloomberg) — Tropical Storm Parma hovered over the South China Sea after crossing Luzon in the Philippines, leaving at least 15 people dead and bringing more rain to areas still recovering from Tropical Storm Ketsana, which hit a week earlier. Two people are missing in northern Luzon after Parma hit as a typhoon two days ago, according to the National Disaster Coordinating Council’s latest report . The storm knocked out power supplies, blew roofs off houses and buildings and ruined rice and other crops. The world’s biggest importer of rice will assess the damage to determine whether it has to increase imports, Agriculture Secretary Arthur Yap said. Parma came a week after Ketsana dropped the most rain on Manila and nearby provinces in more than 40 years, leaving 293 dead. Some areas remain flooded, while others are still cleaning up the mud and damage. Schools, many used as shelters and for relief operations, were shut for a week. Parma “wrought a lot of damage,” Chief Superintendent Roberto Damian, the police chief in northeastern Luzon, said in a phone interview. About 170,000 people were evacuated before Parma hit, according to the disaster council. About 880,000 were evacuated for Ketsana. The storm was about 220 kilometers west-northwest of Laoag city in northern Luzon at 4 a.m. local time, according to the Philippine weather bureau , which says it may “remain almost stationary.” Laoag is about 420 kilometers north of Manila. Landslides Reported Parma’s winds declined to 102 kilometers per hour from 185 kph before it hit land, according to the U.S. Navy Joint Typhoon Warning Center . Landslides were reported in northwestern Luzon, Senior Superintendent Virgilio Fabros, the police chief of Ilocos Sur said in a phone interview. “I see extensive damage especially to our rice and vegetable crops that were about to be harvested,” he said. Parma spared Manila on its approach by veering further north than forecast from the capital. Parma is forecast to be almost stationary for as many as 72 hours, the Philippine weather bureau said yesterday morning. Areas of Luzon including Manila will probably have more rain and thunderstorms, it said. East of the Philippines, Typhoon Melor strengthened to a supertyphoon with winds of 259 kph, according to the U.S. warning center. Melor was 853 kilometers south-southeast of the Japanese island of Iwo To, formerly called Iwo Jima, at 3 a.m. Tokyo time. The storm was moving west at 31 kilometers per hour and is forecast to turn to the north and approach Tokyo early on Oct. 8. To contact the reporter on this story: Francisco Alcuaz Jr . in Manila at falcuaz@bloomberg.net

Read the full article →

Ralph Lauren to Open Up to 15 China Stores Yearly as U.S. Sales `Flatten’

August 31, 2009

By Wing-Gar Cheng Aug. 31 (Bloomberg) — Polo Ralph Lauren Corp., designer of Chaps and Club Monaco clothing, plans to open as many as 15 stores annually in Hong Kong and China as U.S. sales slow. “We were going to come at this business aggressively anyway but now it’s even more of a reason as the businesses in the U.S. and Europe have flattened,” George Hrdina , president of Ralph Lauren’s Asian business, said in an interview in Hong Kong. “We do more Ralph Lauren business on the island of Manhattan, New York than we do in Hong Kong and China.” Demand for luxury goods in China , the world’s most populous nation, remains unabated, according to a survey published last month by consultants Ruder Finn Asia. New York-based Ralph Lauren , with 12 stores and 35 retailing counters in Hong Kong and China, is changing its strategy to move away from department-store sales to compete with brands such as LVMH Moet Hennessy Louis Vuitton SA and Gucci owner PPR SA . “The Chinese market for luxury products is still growing very well,” Shaun Rein , the Shanghai-based managing director of China Market Research Group, said in a phone interview today. “The consumers in China are still spending money, although some are hit by the financial crisis.” Ralph Lauren has gained 51 percent this year in New York trading. The stock fell 0.6 percent to $68.72 on Aug. 28. “We’re probably a little behind the other luxury retailers in entering this market,” Hrdina said. The company’s new stores in China will probably be in Beijing, Shanghai and surrounding regions, he added. Piracy “I don’t think they did a very good job at marketing positioning and store development for the China market, and they also probably were hit fairly hard by piracy,” Rein said. “The problem for Polo, people don’t know what’s real and what isn’t.” The clothier is taking back the Asian distribution rights for its Polo and Ralph Lauren brands from Dickson Concepts (International) Ltd. on Jan. 1. The move is part of the company’s efforts to retool its image in Asia, moving away from selling products in department stores to focusing on setting up its own retail outlets. “Our goal on a freestanding basis is to open 10 to 15 stores annually,” Hrdina said. “So we will now control the product, the quality, the branding” as the company seeks to change the perception of Polo and Ralph Lauren from casual sportswear labels to luxury brands, Hrdina added. The brand has also been hurt by piracy, he said. Ralph Lauren has 10 stores, a factory outlet and three shops in shops in Hong Kong, Hrdina said. It has one store and 32 shops in shops in mainland China. China Retail Sales Luxury brands, facing aging populations in Europe and North America are turning to Asia, Joe Wong , managing director for PPR SA’s Gucci Group in Hong Kong, China and Macau, told an industry meeting on Aug. 28. “Asia, particularly China, is possibly the solution,” Wong said. “China has a very big base of consumers and lots of up- and-coming young executives and middle class.” China’s retail sales gained 15 percent in the first half. While the growth in the sales of consumer goods slowed to 11.6 percent in February, it has since accelerated to 15.2 percent for July. The level of spending among U.S. consumers with an average income of $208,000 was “pretty weak” in the second quarter, according to a survey by luxury-market research firm Unity Marketing. Wealthy Americans curbed purchasing even as confidence rebounded as indicated by Unit’s Luxury Consumption Index, which jumped 18.6 points to 74.3 in the three-month period ended in June. ‘Better Value’ “ Ralph Lauren ought to be cautious about growing too fast because they don’t have the brand positioning,” Rein said. While Chinese consumers are still buying luxury goods, “they’re looking for better value, they’re starting to buy products like bags that can be used everyday rather than a shirt that can be worn once a month,” he added. Ralph Lauren on Aug. 5 posted first-quarter profit and sales that exceeded analysts’ projections, helped by overseas sales. Net income fell 19 percent to $76.8 million in the three months through June 27 and revenue fell 8.1 percent to $1.02 billion. “The sense is that there is a demand for the elevated brand that they’ve not seen in this market place,” Hrdina said. “Here, we definitely feel that we’re going to continue to invest aggressively.” To contact the reporter on this story: Wing-Gar Cheng in Hong Kong at wgcheng@bloomberg.net

Read the full article →

Hurricane Bill Strengthens in Atlantic as Tropical Depression Ana Weakens

August 17, 2009

By Brian K. Sullivan and Alex Morales Aug. 17 (Bloomberg) — Hurricane Bill is poised to grow into a major storm as it heads toward Bermuda later this week, while tropical depression Ana may dissipate today in the Caribbean, the National Hurricane Center said. As the remnants of Tropical Storm Claudette headed inland over Alabama, Bill’s maximum sustained winds increased to 75 miles (121 kilometers) an hour at 5 a.m. Miami time, the Center said on its Web site. The NHC projects that Bill’s winds will reach at least 111 mph, becoming a major hurricane, by the day after tomorrow, and that the storm will reach southwest of Bermuda this weekend. Ana will probably move over Hispaniola today and dissipate as it crosses the island, where it is expected to drop as much as 6 inches (15 centimeters) of rain in the mountains, according to a hurricane center bulletin. The system is moving northwest at 28 mph and is centered about 70 miles south of St. Croix, with maximum sustained winds of 35 mph. The storm still has a chance to regain strength and threaten oil production in the Gulf of Mexico, said Jim Rouiller , a senior energy meteorologist at Planalytics Inc. in Wayne, Pennsylvania. “Don’t write her off simply because if she does make it into the Gulf she could explode,” Rouiller said. “This one still bears watching.” The 2009 hurricane season got off to an active start over the weekend as three named storms developed in 48 hours. Ana, the first, developed on Aug. 15, and Bill formed later in the day. Tropical Storm Claudette formed yesterday and has since weakened to a tropical depression over Alabama. Gulf Waters Rouiller said Claudette’s rapid formation in the Gulf gave him pause because it blossomed out of the warm water there. The water in parts of the Gulf is about 90 degrees Fahrenheit (32 Celsius), according to Weather Underground, a private forecaster. Claudette intensified to a tropical storm in the Gulf at about mid-day yesterday, after forming as a tropical depression earlier in the day. “Claudette is a testament to how ripe the Gulf is” in terms of fueling storms, Rouiller said. “Any system there has to be watched closely.” The Gulf is home to about 26 percent of U.S. oil production. Florida, also susceptible to storms, is the second- largest orange producer in the world behind Brazil. Claudette’s winds weakened to 35 mph, from 50 mph overnight, and the system may drop as much as 10 inches of rain, the center said. The system was heading northwest at 12 mph. Bill was 1,160 miles east of the Lesser Antilles and moving west-northwest at 22 mph. A weather pattern moving east across the U.S. this week will probably shelter the U.S. East Coast from the storm, Rouiller said. Bill will probably threaten Bermuda and the Canadian maritime provinces, he said. To contact the reporters on this story: Brian K. Sullivan in Boston at bsullivan10@bloomberg.net ; Alex Morales in London at amorales2@bloomberg.net .

Read the full article →