challenges

Nell Merlino: Expanding Into Foreign Markets: Advice, Caution and Building a Strategy

by on May 19, 2011

Huffington Post…

Did you know that the word “millionaire” in Hindi is masculine? What does that mean for women in India who wants to grow a multi-million dollar business? I learned about this conundrum from a colleague Nalini Mehta who attended our Make Mine a Million $ Business event in San Francisco last Fall. I often hear from small business owners who are looking for advice on how to break into and navigate international markets like China, India or even Vietnam. It’s a hot economic trend and with good reason. A report released this week by TD Economics revealed that from 2004-2009, exports by small U.S. firms to all countries grew 30%, while exports to China and India doubled. In addition, according to the U.S.-China Business Council, a private, nonpartisan, nonprofit organization of roughly 220 American companies, China has been our fastest growing export market since it joined the World Trade Organization. What’s more, it’s the only major market since 2000 to have averaged the 15 percent growth per year needed to meet President Barack Obama’s goal of doubling US exports by 2014. The Council also reports that America’s small- and medium-sized companies are succeeding in China, but those companies still need more help accessing China’s markets. So I asked my good friend Ned Cloonan, a former vice president at AIG and the current president of Ned Cloonan Associates, an advisory firm focused on international market access, strategic philanthropy and business intelligence, for some of his thoughts. Ned was one of the first in corporate America to seriously invest in gender equity issues around the world (including Count Me In). He’s also been at the forefront of just about every major market opening in the world over the last 15 to 20 years and he has great advice for women wanting to do business abroad. For example: 1. UNDERSTAND THAT THIS IS A LONG-TERM COMMITMENT. It’s going to take time and capital for you to get access and be able to establish a business in countries like China, India or Vietnam. It’ll be longer and cost you more than probably anything you’ve done to date. To be on the safe side, you might want to build the new markets into a long-term business and financing strategy. 2. YOUR BUSINESS, PRODUCT OR SERVICE STANDS THE BEST CHANCE OF BEING SUCCESSFUL IF IT IS RELEVANT TO THE CURRENT ECONOMIC PLANNING AND PRIORITIES OF THOSE COUNTRIES. For example, in China, they have great interest in product or service that can help in energy efficiency or alternative energy. They are also facing an aging population because of the country’s longstanding one child policy, so if you have a product or service that is related to healthcare or healthcare related services that could be of interest to them. You need to offer something that these countries need and want at that time. 3. SPEND TIME AND EFFORT TO UNDERSTAND SOME OF THE DIFFERENCES IN THE WAYS DECISIONS AND POLITICS ARE MANAGED. It’s important to know the difference between local, regional and federal or central government interests. It’s critical for you to know the decision makers in the process in the regional and local governments. To that end, see if you can participate in a trade mission with the governor’s office, state department of commerce, the Asia Society, or U.S./India business council. There’s a wealth of information and knowledge that may help you understand more fully not just the challenges but also the opportunities and maybe some potential partners. Participating in trade missions and reaching out to chambers — both here and abroad — can be a cost effective way for a small business owner to meet more senior decision makers and get better advice and information in these countries. You stand a better chance to “punch above your weight.” 4. POLITICS MATTERS. Your business can easily be affected by the ebbs and flows of the political relationships between the US and those countries. Even if you’re small or medium sized, you can feel the pressure if the relationship is strained or if there’s a desire for the relationship to expand or grow and prosper. M3 awardees receive a one-year legislative membership with Women Impacting Public Policy (WIPP), a non-profit, nonpartisan public policy advocacy organization with over half a million members (including 54 business organizations) educating and advocating on economic issues for women in business. It’s been a valuable resource to those interested in breaking into foreign markets. 5. FIND A PARTNER IN THAT COUNTRY. If you’re small or medium-sized, you’re going to have to find a compatible partner to assist you in navigating through all of the challenges each one of these countries presents to any business that wants to be successful there — particularly a foreign investor. Choosing a partner could include a reference to a model that has worked in the past is finding someone educated here but from there. 6. CONSIDER A “SECONDARY CITY” STRATEGY. In China, for example, the government is encouraging investment in smaller, interior cities, and not just Shanghai or Beijing. So, it’s important to be flexible.

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Nell Merlino: Expanding Into Foreign Markets: Advice, Caution and Building a Strategy

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Ilene H. Lang: Check the Chart

by on May 17, 2011

Huffington Post…

Commencement addresses are often peppered with inspiring quotes, stories of perseverance, and warm anecdotes intended to uplift and inspire the next generation. But in a recent piece for the Washington Post geared for college grads, I opted to get straight to the point about the challenges ahead. The fact is that a level playing field does not exist for women in the business world. Gender-based stereotypes have a real impact on the careers of young women today. But there is one way to ensure the first step from college is the right one. Companies with high percentages of women and minorities at the top indicate that women and minorities are valued and enmeshed in the corporate culture. Such companies have invested in women. They are where you’ll have a career, not merely a job. Below is my advice for the Class of 2011. If you know any graduates who are at this critical point in their lives, please share it: The  Mad Men days of open, unabashed sexism in the workplace are largely gone — at least in the United States. But just because you can’t see sexism doesn’t mean it’s not there. For all the future leaders in this audience, a word of caution: Unintentional biases — assumptions about how a business leader should look or act — still exist in the business world. Women, on average, earn 77 cents for every dollar earned by a man. Even today, Catalyst research shows that women often start at lower positions than equally skilled men. And very few women occupy top positions in our most powerful companies. In fact, only 12 Fortune 500 CEOs are women. How do you navigate this uneven playing field? Your first step can be critical. When considering where to work after graduation, look at the top of an organization. If you don’t see women included  and leading on the highest levels, keep on walking. And men, keep your eyes open too. Here’s why. Companies with more women leaders correlate with better financial performance and signal an environment where everyone is valued and rewarded, a place where advancement is not dictated by sexist stereotypes. Diversity on top also indicates a broader and deeper talent pool throughout the organization. This is crucial as these are the role models, women and men alike, who can mentor, sponsor and nurture your career. So when you look for your first job, check the org charts along with the job description — and do this throughout your professional life, too. Value the companies that value women. Ask yourself, what do the leaders look like? Are there some that look like you? And if you don’t see women as part of the organizational leadership, let your feet do the talking.

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Ilene H. Lang: Check the Chart

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Video: Devenport Says EU Is `Fertile Ground’ for New Companies

May 13, 2011

May 13 (Bloomberg) — Andrew Devenport, chief executive officer of Youth Business International, talks about the challenges facing entrepreneurs that want to start companies in Europe.¶ Rob Lewis, CEO of Omnifone, also speaks with Maryam Nemazee on Bloomberg Television’s “Last Word.”

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Lehman Mortgage and Structured Finance Veteran Appointed New CEO at Integrated Asset Services

May 3, 2011

Industry Leader Promises New Approach to Solving Ongoing Challenges

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Video: Attanasio Says Investment in Brewers `Good Asset Play’

April 29, 2011

April 29 (Bloomberg) — Milwaukee Brewers owner Mark Attanasio talks about the challenges of running a Major League Baseball franchise in a smaller media market. Attanasio talked with Bloomberg’s Erik Schatzker on April 27. (Source: Bloomberg)

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Edward R. Hamberger: Freight Rail Investments Helping America Meet the Challenges Ahead

March 17, 2011

When I witnessed President Obama address the U.S. Chamber of Commerce last month, he issued a call to American businesses to invest private capital reserves and begin hiring again in an effort to boost lagging employment rates. For the past 30 years, the nation’s freight railroads have been doing exactly that: investing record amounts of private capital in the national rail network and supporting jobs across the country. That is because, unlike any other mode of transportation, freight railroads operate across infrastructure they themselves build, maintain and grow with private dollars. Last week, we announced that freight railroads once again are projected to spend a record $12 billion on capital expenditures in 2011, up from $10.7 billion in 2010. On the whole, freight railroads invest five-times more than the average U.S. manufacturer, and since 1980 have invested $480 billion to build, maintain and grow the national rail network. So, freight rail has been and will continue to meet the President’s call in the critical years ahead. However, we must recognize the reality that these multi-billion dollar investments made by the freight railroads — which enable the movement of one third of the nation’s exports — are both dependent on and supported by sensible government regulation. Acknowledging the role business has to play in expediting our nation’s economic recovery, the President in January issued an Executive Order pledging to seek out and remove regulations that are needlessly stifling capital investment, job creation and subsequent economic growth. It is upon this critical point that freight rail’s continued success, and continued private capital investments, depend. Let me be specific. Recently, the Federal Railroad Administration (FRA) agreed to review its regulations for implementing positive train control, the most expensive federal safety mandate in railroad history. This is a regulation that Cass Sunstein, administrator of the White House Office of Information and Regulatory Affairs, when prompted to offer an example of any rules where the benefits don’t justify the costs, cited PTC as a stand-out example. By taking steps to review the PTC rule, FRA has an opportunity to revise a federal mandate that according to the Administration’s own estimates has a cost-benefit ratio of nearly 20 to one. While these steps by FRA are laudable, there remain other challenges from both legislation and regulations that threaten to undermine railroad infrastructure investments. Despite broad acknowledgment of the importance of continued private rail investments amidst federal, state and local budget cuts, there are those in the executive and legislative branches of government that continue to pursue fundamental changes to the very economic regulations that have spurred rail’s growth and have allowed it to serve as an economic engine for the country. Whether through legislation or regulation, these proposals are creating an air of uncertainty in the marketplace, potentially harming those businesses that rely on rail to get their goods to the global market, and ultimately consumers. Uncertainty has a chilling effect on investments, which could in turn reduce railroads’ ability to sustain record spending on rail infrastructure and equipment. That means existing track and equipment would deteriorate and plans for new capacity eliminated. Inevitably, rail service would become slower, less responsive, less affordable and less efficient. This could not come at a worse time. President Obama and Congress have great expectations for the freight rail industry — whether that’s to help American business double exports by 2015, or to provide the literal foundation for increased intercity and high-speed passenger rail. Now is the time to revisit what regulations stand in the way of reaching our goals, while preserving those that help ensure continued success and economic growth. This will allow freight rail to continue to meet the great expectations America has for meeting the needs of business and consumers and help keep propelling U.S. economic recovery.

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BOC Leaves Rates Unchanged, as Economic Activities Improving but Challenges Remain

March 1, 2011

BOC Leaves Rates Unchanged, as Economic Activities Improving but Challenges Remain

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Stephen M. Wing: Winning the Future Means Closing the Skills Gap

February 6, 2011

In his State of the Union address, President Obama outlined a plan for the United States to win the future through better education, smarter innovation and broader investment. He would have done well to invoke another favorite phrase–”the fierce urgency of now”, itself borrowed from Dr. Martin Luther King, Jr.–to bolster his case. That urgency was imprinted in black and white, quite literally, the next morning. As the day-after analysis of the speech occupied front pages of newspapers across the country, readers needed only flip to page 2 for a reality check. “National science test scores disappoint,” announced one headline. “Less than half of students proficient in science”, proclaimed another. The newest report from the National Assessment of Educational Progress, known as “the nation’s report card”, was but the latest in a litany of sobering findings suggesting today’s generation of young Americans is fully unprepared for the challenges of tomorrow. How, indeed, will we seize our future and out-compete the rest of the world in scientific and technological advances when just one-third of American 8th graders and barely one in five high school seniors are deemed “proficient” in science? How will we out-innovate our global peers in creative pursuits when today’s American 15-year-olds rank 17th internationally in reading comprehension and 31st in math? And–worse still–when a quarter of our students won’t finish high school on time, if at all? These are questions that vex many of the forward-thinking business executives we work with at Corporate Voices for Working Families, the leading national business membership organization shaping conversations and collaborations on policy issues involving working families. Employers are certainly not alone in the collective hand-wringing, but they possess a unique perspective on the skills and knowledge young people need to succeed in the labor market today and the workforce of tomorrow. Our work at Corporate Voices reflects this perspective, and the recognition that employers can and must be active partners in preparing the talent pool of skilled employees. One important way to do so is to invest in their continuing education and training through ” learn and earn ” initiatives–programs offering lower-skilled workers in particular the opportunity to pursue higher education and post-secondary credentials while earning a living at the same time. The need is critical: Of the 47 million jobs projected to be created in the U.S. by 2018, some 30 million will require at least some post-secondary education. Those jobs will simply be out of reach for too many young Americans unless they are able to negotiate the demands of school and work. In a new publication, ” From an ‘Ill-Prepared’ to a Well-Prepared Workforce: The Shared Imperatives for Employers and Community Colleges to Collaborate ,” we explore innovative partnerships between the business sector and community colleges. We highlight the most successful practices in these ‘learn and earn’ programs, and recommend a set of public and private policies to support their growth and replication. Such business-college partnerships are one tiny but promising strategy in support of the ambitious domestic agenda President Obama imagined once again last week. To win the future in a vastly different global landscape of tomorrow, we’ve got to start today–and investing in the best-educated workforce we’re capable of producing is a fine place to start.

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Government Liabilities Rose $2 Trillion In 2010

December 22, 2010

The U.S. government fell deeper into the red in fiscal 2010 with net liabilities swelling more than $2 trillion as commitments on government debt and federal benefits rose, a U.S. Treasury report showed on Tuesday. The Financial Report of the United States, which applies corporate-style accrual accounting methods to Washington, showed the government’s liabilities exceeded assets by $13.473 trillion. That compared with a $11.456 trillion gap a year earlier. Unlike the normal measurement of government intake of receipts against cash outlays, accrual accounting measures costs such as interest on the debt and federal benefits payable when they are incurred, not when funds are actually disbursed. The report was instituted under former Treasury Secretary Paul O’Neill, the first Treasury secretary in the George W. Bush administration, to illustrate the mounting liabilities of government entitlement programs like Medicare, Medicaid and Social Security. The government’s net operating cost, or deficit, in the report grew to $2.080 trillion for the year ended September 30 from $1.253 trillion the prior year as spending and liabilities increased for social programs. Actual and anticipated revenues were roughly unchanged. The cash budget deficit narrowed in fiscal 2010 to $1.294 trillion from $1.417 trillion in 2009. But the $858 billion tax cut extension package enacted last week is expected to keep the deficit well above the $1 trillion mark for another year. BUDGET CUT DEBATE The latest Treasury report should fuel debate in Congress over spending cuts next year as a new Republican majority in the House of Representatives takes office. The U.S. Senate on Tuesday approved a compromise bill to fund the government until March 4, 2011. After that, Republicans will have the chance to push through dramatic budget cuts. “Today, we must balance our efforts to accelerate economic recovery and job growth in the near term with continued efforts to address the challenges posed by the long-term deficit outlook,” Treasury Secretary Timothy Geithner said in a letter accompanying the report. “The administration’s top priority remains restoring good jobs to American workers and accelerating the pace of economic recovery.” Among key differences between the operating deficit and the cash deficit were sharp increases in costs accrued for veterans’ compensation, government and military employee benefits and anticipated losses at mortgage finance giants Fannie Mae and Freddie Mac. The biggest increase in net liabilities in fiscal 2010 stemmed from a $1.477 trillion increase in federal debt repayment and interest obligations, largely to finance programs to stabilize the economy and pull it out of recession. The federal balance sheet liabilities do not include long-term projections for social programs such as Medicare, Medicaid and Social Security, but these showed a positive improvement. The report said the present value of future net expenditures for those now eligible to participate in these programs over the next 75 years declined to $43.058 trillion from $52.145 trillion a year ago — a change attributed to the enactment of health-care reform legislation aimed at boosting coverage and limiting long-term cost growth. The overall projection, including for those under 15 years of age and not yet born, is much rosier, with the 75-year projected cost falling to $30.857 trillion from last year’s projection of $43.878 trillion. The report noted, however, that there was “uncertainty about whether the projected reductions in health care cost growth will be fully achieved.” Copyright 2010 Thomson Reuters. Click for Restrictions .

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Video: Morocco Completes Hotel Projects to Entice More Tourists

November 10, 2010

Nov. 10 (Bloomberg) — Bloomberg’s Francine Lacqua reports from Marrakech on the challenges facing the Moroccan tourism industry.

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Disney CEO Bob Iger Talks About The Entertainment Giant’s Digital Plan

October 4, 2010

i always enjoy talking digital with Iger–who is pictured above in an interview I did with him in 2006 at the fourth D: All Things Digital conference–since he has been one of the old media moguls who seems unafraid of the challenges of new media… We want to make Disney sites more of a community and entertainment center than a marketing hub,” said Iger. “Where is gets complicated is the levels of exclusivity and the other places we want to distribute our content.”

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Video: Lufkin Sees More Difficult Market for Financial Startups: Video

September 23, 2010

Sept. 23 (Bloomberg) — Dan Lufkin, co-founder of Donaldson Lufkin & Jenrette and chairman of Schwinn Holdings Corp., talks with Bloomberg’s Jon Erlichman about the challenges of starting a financial firm in today’s market and business opportunities in the technology field. (Source: Bloomberg)

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Why The Difference Between ‘Recession’ & ‘Depression’ Is Key To Recovery

September 7, 2010

There are, indeed, obvious differences between the current downturn and the Great Depression. The unemployment rate, for one thing, was much higher in the Great Depression. But for the purpose of deciding what to do next, the term “Great Recession” is deeply misleading, and has led to a continued underestimation of the challenges facing the United States and the world.

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Video: Simpfendorfer Sees Demand Side Details Lacking for China: Video

September 2, 2010

Sept. 2 (Bloomberg) — Ben Simpendorfer, chief China economist at Royal Bank of Scotland Group, talks about the challenges facing investors in trying to understand the economic growth of China. Simpendorfer speaks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: Governor Herbert Says Utah `Doing More With Less’: Video

August 31, 2010

Aug. 31 (Bloomberg) — Utah Governor Gary Herbert talks about the challenges facing his state’s economy. Herbert speaks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: BNP Paribas’s Yeung Discusses BYD Results, GM IPO: Video

August 19, 2010

Aug. 20 (Bloomberg) — Jack Yeung, an analyst at BNP Paribas Securities Asia Ltd., talks about the outlook for BYD Co.’s financial results, and General Motors Co.’s filing for an initial public offering. GM’s filing with the U.S. Securities and Exchange Commission yesterday laid out the challenges the Detroit-based company will face generating enough investor demand to complete an offering that people familiar with the plan have said may be as large as $16 billion. Yeung, who speaks with Bloomberg’s Rishaad Salamat in Hong Kong, also discusses China’s auto industry. (Source: Bloomberg)

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Fred Whelan and Gladys Stone: They Took My Ideas and Gave Somebody Else the Job

August 19, 2010

We met over coffee with a Director of Sales who told us of a recent experience he had interviewing at a company. He went through several rounds of interviews and by all accounts he was headed for an offer. The recruiter said, “Things are looking good” and told him he should keep selling. Every time this Director went back for another round, the company kept pumping him for more ideas, which he freely gave. After the fourth round in a protracted process, he was surprised to learn that they had implemented two of his ideas. When the CEO said to him, “You’re going to make me a lot of money”, the Director of Sales thought an offer was just around the corner. Unfortunately, the offer went to another candidate. This Director of Sales learned the painful lesson of giving away too much for free. We heard a similar story about an advertising agency which was approached by a potential client. The potential client was a small company and wanted the agency to develop some creative, free of charge, before they made an agency selection. The head of the agency told the company president that he was happy to provide broadcast and print samples from current clients, but wasn’t going to develop new creative and give away free what they sell. The agency got the account. We’re not saying that you should never give out ideas, especially when you’re interviewing. It’s normal in the course of an interview to be asked your ideas on how to solve a problem the company is facing. It gives a prospective employer a window into how you think and this is an important element in their hiring decision. However, it’s better to give them a “taste” rather than “serving up the whole meal.” You need to balance out the degree to which you give away your ideas. Otherwise, you’re in the role of an unpaid consultant. So what do you do when you’re faced with this dilemma? When you feel you’ve reached that level of discomfort where giving away more ideas without an offer just doesn’t feel right? A very powerful way to demonstrate your strategic thinking is to draw on your past successes. For example, you can relate the story of how you analyzed some research and came up with an epiphany that helped grow the business. Past performances are the best predictor of future results, which is why it’s important to highlight your accomplishments. Building the bridge between your past achievements and the challenges the prospective employer is facing is a great way to paint a picture of what kind of impact you could make at their company. The Director of Sales we mentioned above is scheduled to interview at another company. He is going to be very cautious and give ideas out on a more strategic basis. He learned from the previous experience. He no longer believes that, “They are using my ideas so they must love me.” He now realizes, “If they are using my ideas they may not need me.” This is not always the case, but it certainly can be. Use your best judgment when you’re asked for advice or recommendations during an interview. Give them just enough so they’ll want more – on a permanent basis. Fred & Gladys Whelan Stone Executive Search and Coaching Authors of GOAL! Your 30 Day Career Plan for Business & Career Success

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Video: China’s Film Industry Faces Domestic, Foreign Challenges: Video

August 9, 2010

Aug. 9 (Bloomberg) — Bloomberg’s Stephen Engle reports on the challenges facing China’s film industry. China is encouraging the development of its film industry to help local movie makers compete with overseas producers such as Time Warner Inc. China’s box office receipts are projected to rise 61 percent to 10 billion yuan this year, the State Administration of Radio, Film and Television projected in May. (Source: Bloomberg)

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Stupak: BP Won’t Let Congress Talk To Key Employees

June 25, 2010

ATLANTA — The chairman of a House panel investigating the Gulf oil spill said Friday that BP won’t let members talk to several employees who may have critical information about what led to the catastrophe. Rep. Bart Stupak, D-Mich., told The Associated Press that BP PLC has cited its own investigation as its reason for denying access to the employees. BP spokesman David Nicholas said in an e-mail that BP “has not objected to providing access to any of the specific BP employees that the committee has requested, and we continue to cooperate with the committee.” He would not elaborate. BP was leasing and operating the Deepwater Horizon rig when it exploded April 20, killing 11 workers and blowing out the well that has now gushed as much as 131.5 million gallons of oil into the Gulf. “They have been slow in bringing forth documents and witnesses we want to talk to,” Stupak said of BP. He also said information gathered so far shows it could be difficult for the government to prosecute anyone for the spill because of vague environmental laws and other challenges. “And remember, in a criminal case you have to prove intent,” he said. “That’s very, very difficult in a situation like this.” Stupak said there are a half-dozen people his committee wants to question, but hasn’t been able to. Stupak, chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations, did not say whether some of those people work for companies other than BP that were involved with the Deepwater Horizon. He also said he isn’t ready to issue subpoenas yet. Among the people Stupak’s committee wants to talk to is BP well site leader Donald Vidrine, one of the top two BP officials on the Deepwater Horizon at the time of the blast. Vidrine was scheduled to testify earlier this month at a hearing in Kenner, La., where government investigators were questioning rig workers. But Vidrine had a health problem and didn’t testify, a Coast Guard official said at the time. Vidrine told investigators three days after the explosion that at one point before the blast he had a call from the rig floor and that there was a problem “getting mud back” from the well. Some time later, there was an explosion, he said. Stupak described Vidrine as an “important piece” of the puzzle as investigators try to determine what happened. Vidrine has repeatedly declined to speak to the AP, and BP has ignored several requests for information on his status with the company.

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Apple’s Jobs Says Company Is Probing `Troubling’ Challenges Foxconn Faces

June 1, 2010

By Connie Guglielmo and Joseph Galante June 1 (Bloomberg) — Apple Inc. Chief Executive Officer Steve Jobs said his company is taking pains to understand the challenges facing Foxconn Technology Group, a maker of Apple products that has been plagued by suicides. “It’s very troubling,” Jobs said during an on-stage interview at a technology conference in Los Angeles. “We’re all over this.” At least 10 people have died this year at Foxconn’s Chinese operations. Apple said last week that it is investigating practices at the company, also known as Hon Hai Group, which makes iPhones and other electronics. Jobs also defended the manufacturer. Foxconn “is not a sweatshop,” Jobs said. Apple “does one of the best jobs” inspecting suppliers, he said. During the conference, Jobs took jabs at Adobe Systems Inc.’s Flash online video software, saying the technology is on the wane. Flash looks as though “it’s had its day,” Jobs said. “The way we’ve succeeded is by choosing which horses to ride, technically,” he said. Jobs added that “if you choose wisely, you can save yourself an enormous amount of work.” Jobs is in the midst of a public dispute with Adobe over which software is best for making video run smoothly on his company’s mobile devices. Apple has faulted Flash as slow, power hungry and unsuitable for some of Apple’s products. Apple recently overtook Microsoft Corp. to become the world’s most valuable technology company. The gain in Apple’s share price is “surreal,” Jobs said. To contact the reporters on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net ; Joseph Galante in San Francisco at jgalante3@bloomberg.net .

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Hu Tells U.S. China Will Move Gradually, Independently on Changes to Yuan

May 23, 2010

By Rebecca Christie and Nicole Gaouette May 24 (Bloomberg) — President Hu Jintao said that China will move gradually and independently in making changes to the nation’s exchange-rate mechanism as talks with the U.S. opened in Beijing today. “China will continue to steadily advance the reform of the formation mechanism of the exchange rate under the principles of independent decision-making, controllability and gradual progress,” said Hu, 67, echoing language in a May 10 central bank outlook for policy making. Yuan forwards strengthened for a second day on speculation Chinese officials will indicate their intention to let the currency strengthen during the two-day Strategic and Economic Dialogue. U.S. Treasury Secretary Timothy F. Geithner said the U.S. and China have a shared goal of a more balanced world economy and stronger economic ties. “Both the U.S. and China agree on something: that is that China will switch from a peg to the dollar to a peg to a basket” of currencies, Lu Ting , Hong Kong-based economist with Bank of America-Merrill Lynch, said on Bloomberg Television. “The timing of the initial move and whether or not there will be a one-off revaluation, those will be the questions.” Twelve-month non-deliverable forwards climbed 0.2 percent to 6.7290 per dollar as of 10:24 a.m. in Hong Kong, indicating investors expect the Chinese currency to gain about 1.5 percent against the dollar in the next year. The contracts slumped last week on speculation that China may defer appreciation as Europe’s debt crisis threatens to derail the global recovery. European Crisis Chinese Vice Premier Wang Qishan said at the opening of the dialogue that the European sovereign-debt crisis has “impacted market confidence.” “It has brought many uncertainties to the slowly recovering world economy, and added to the difficulties of countries concerned in implementing their macro policies,” Wang said. In contrast, Geithner, 48, said the U.S. and China are well placed to withstand the European crisis, with both countries experiencing stronger-than-expected economic recoveries. “Economic growth in the U.S. and China is broader and stronger than many had anticipated, even a few months ago,” Geithner said. “Even with the challenges of reform and growth facing some of the nations of Europe, we are together, the United States and China, along with India, Brazil and the emerging economies of Asia and other regions, in a much stronger position today to overcome the challenges ahead.” ‘Level-Playing Field’ Geithner said he welcomed China’s stance that exchange- rate reform is “important,” adding that a market-driven currency would allow it to sustain economic growth with low inflation. Countries need to compete on a “level playing field” and share in the “benefits and responsibilities” of global trade, he said. “As we reform the U.S. economy to promote savings and investment, China is reforming its growth model to promote domestic demand and consumption,” he said. “Our common interests lie in building a more stable global financial system less prone to crisis.” Secretary of State Hillary Clinton and Federal Reserve Chairman Ben S. Bernanke are also in China for the discussions. Geithner next visits London, Frankfurt and Berlin to reinforce his call for coordinated efforts to fight the region’s crisis and rein in government spending. Geithner also addressed China’s efforts to promote technology development, which have drawn concern from U.S. companies that they might discriminate against foreign-owned businesses. More Open “We welcome a more open China today,” Geithner said. “Innovation flourishes best when markets are open, competition is fair, and strong protections exist for ideas and inventions.” Heading into this week’s meetings, David Loevinger , the Treasury’s senior coordinator for China affairs, called for China to “do everything it can” to contribute to a broad- based global recovery. This includes allowing the yuan, which has been pegged at about 6.8 to the dollar for the past 22 months, to appreciate against the U.S. currency. The yuan’s peg has seen the currency gain along with the dollar against the euro this year as the European debt crisis deepened. The euro fell against the dollar, ending a three-day gain, on concern Greece’s fiscal crisis will spread to other nations. The currency dropped to $1.2505 as of 12:43 p.m. in Tokyo from $1.2570 in New York last week. — Kevin Hamlin , Peter Cook , Susan Li , Michael Forsythe , Yanping Li . Editors: Russell Ward , Paul Panckhurst To contact the reporters on this story: Rebecca Christie in Beijing at rchristie4@bloomberg.net ; Nicole Gaouette in Beijing at ngaouette@bloomberg.net

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Hu Tells U.S. China Will Move Gradually, Independently on Changes to Yuan

May 23, 2010

By Rebecca Christie and Nicole Gaouette May 24 (Bloomberg) — President Hu Jintao said that China will move gradually and independently in making changes to the nation’s exchange-rate mechanism as talks with the U.S. opened in Beijing today. “China will continue to steadily advance the reform of the formation mechanism of the exchange rate under the principles of independent decision-making, controllability and gradual progress,” said Hu, 67, echoing language in a May 10 central bank outlook for policy making. Yuan forwards strengthened for a second day on speculation Chinese officials will indicate their intention to let the currency strengthen during the two-day Strategic and Economic Dialogue. U.S. Treasury Secretary Timothy F. Geithner said the U.S. and China have a shared goal of a more balanced world economy and stronger economic ties. “Both the U.S. and China agree on something: that is that China will switch from a peg to the dollar to a peg to a basket” of currencies, Lu Ting , Hong Kong-based economist with Bank of America-Merrill Lynch, said on Bloomberg Television. “The timing of the initial move and whether or not there will be a one-off revaluation, those will be the questions.” Twelve-month non-deliverable forwards climbed 0.2 percent to 6.7290 per dollar as of 10:24 a.m. in Hong Kong, indicating investors expect the Chinese currency to gain about 1.5 percent against the dollar in the next year. The contracts slumped last week on speculation that China may defer appreciation as Europe’s debt crisis threatens to derail the global recovery. European Crisis Chinese Vice Premier Wang Qishan said at the opening of the dialogue that the European sovereign-debt crisis has “impacted market confidence.” “It has brought many uncertainties to the slowly recovering world economy, and added to the difficulties of countries concerned in implementing their macro policies,” Wang said. In contrast, Geithner, 48, said the U.S. and China are well placed to withstand the European crisis, with both countries experiencing stronger-than-expected economic recoveries. “Economic growth in the U.S. and China is broader and stronger than many had anticipated, even a few months ago,” Geithner said. “Even with the challenges of reform and growth facing some of the nations of Europe, we are together, the United States and China, along with India, Brazil and the emerging economies of Asia and other regions, in a much stronger position today to overcome the challenges ahead.” ‘Level-Playing Field’ Geithner said he welcomed China’s stance that exchange- rate reform is “important,” adding that a market-driven currency would allow it to sustain economic growth with low inflation. Countries need to compete on a “level playing field” and share in the “benefits and responsibilities” of global trade, he said. “As we reform the U.S. economy to promote savings and investment, China is reforming its growth model to promote domestic demand and consumption,” he said. “Our common interests lie in building a more stable global financial system less prone to crisis.” Secretary of State Hillary Clinton and Federal Reserve Chairman Ben S. Bernanke are also in China for the discussions. Geithner next visits London, Frankfurt and Berlin to reinforce his call for coordinated efforts to fight the region’s crisis and rein in government spending. Geithner also addressed China’s efforts to promote technology development, which have drawn concern from U.S. companies that they might discriminate against foreign-owned businesses. More Open “We welcome a more open China today,” Geithner said. “Innovation flourishes best when markets are open, competition is fair, and strong protections exist for ideas and inventions.” Heading into this week’s meetings, David Loevinger , the Treasury’s senior coordinator for China affairs, called for China to “do everything it can” to contribute to a broad- based global recovery. This includes allowing the yuan, which has been pegged at about 6.8 to the dollar for the past 22 months, to appreciate against the U.S. currency. The yuan’s peg has seen the currency gain along with the dollar against the euro this year as the European debt crisis deepened. The euro fell against the dollar, ending a three-day gain, on concern Greece’s fiscal crisis will spread to other nations. The currency dropped to $1.2505 as of 12:43 p.m. in Tokyo from $1.2570 in New York last week. — Kevin Hamlin , Peter Cook , Susan Li , Michael Forsythe , Yanping Li . Editors: Russell Ward , Paul Panckhurst To contact the reporters on this story: Rebecca Christie in Beijing at rchristie4@bloomberg.net ; Nicole Gaouette in Beijing at ngaouette@bloomberg.net

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Derivatives Convention-Goers Worry About Reform, Relax At Bondage Club

April 23, 2010

SAN FRANCISCO — By day, they dealt with risk. At night, it got risqué. Financiers, lawyers, traders and accountants gathered this week at the annual International Swaps and Derivatives Association conference here to discuss “Collateralization and Netting — the Impact” and “Systemic Risk: Advances and Challenges in the Wake of the Crisis.”

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Wellcare Director Herzlinger Resigns, Says Board Didn’t Do Job `Properly’

April 23, 2010

By Pat Wechsler April 23 (Bloomberg) — Harvard Business School professor Regina Herzlinger said she was forced off the board of WellCare Health Plans Inc. , an insurer specializing in Medicare and Medicaid benefits, by directors acting against shareholders’ interests. Herzlinger said the insurer faces “serious challenges” and has underperformed its competitors. Two board panels chose not to nominate her again in light of her “vigorous and uncompromising pursuit” of the shareholders’ interests, she said in a resignation letter filed today by WellCare. The insurer called Herzlinger’s charges a “mischaracterization of facts and motive” in its filing. WellCare settled federal and state charges last year that it had kept money owed to the government and used it to inflate earnings. Herzlinger said the board needs directors with extensive experience in health insurance accounting to ensure continued proper oversight. “I have been committed to remaining on WellCare’s board to help address these and other challenges,” she said in her letter. WellCare insured 2.32 million people as of Dec. 31, according to its Feb. 18 earnings statement. That included 1.35 million in Medicaid programs for the low-income and 972,000 more in Medicare plans for the elderly and disabled. To contact the reporter responsible for this story: Pat Wechsler in New York at pwechsler@bloomberg.net

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Video: Johnson Says Market Recovery May Slow New Regulations: Video

April 9, 2010

April 9 (Bloomberg) — Robert Johnson of the Institute for New Economic Thinking talks with Bloomberg’s Francine Lacqua about the impact the economic recovery may have on implementing new financial market regulations. Johnson also discusses the possible role the International Monetary Fund may have in aiding Greece and the challenges Europe has in handling financial crises. (Source: Bloomberg)

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Republicans Dealt Setback on Health Care by U.S. Senate Parliamentarian

March 22, 2010

By Laura Litvan March 23 (Bloomberg) — The Senate parliamentarian dealt Republicans a setback in their bid to derail the Democratic health-care overhaul package, a spokesman for Senate Minority Leader Mitch McConnell said. Parliamentarian Alan Frumin issued informal guidance to Republicans yesterday that he doesn’t agree with them that a proposed tax on high-end health insurance plans violates Senate budget rules, said Don Stewart , a spokesman for McConnell, a Kentucky Republican. Frumin couldn’t immediately be reached for comment. Republicans said the so-called Cadillac plan tax has an impact on Social Security trust fund that violates the 1974 Budget Act. Republicans plan other challenges under a Senate rule that bars use of the budget reconciliation process for provisions that have only an incidental impact on the budget, Stewart said. That includes a separate challenge to the tax on high-end health plans, he said. At issue are House changes to the most sweeping health-care legislation in four decades, which rewrites the rules governing medical industries and ensures that tens of millions of uninsured Americans will get medical coverage. The House passed the Senate’s version on March 21, which sent that measure to President Barack Obama for his signature into law. The House then approved the companion reconciliation measure of changes that must clear the Senate. Under the rules, the reconciliation measure can pass with a simple majority of 51 votes. Most legislation in the Senate is subjected to vote-delaying filibusters by opponents, which take 60 votes to overcome. To contact the reporters on this story: Laura Litvan in Washington at llitvan@bloomberg.net ;

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American Express, Capital One Shares Tumble As New Credit Card Rules Near

January 22, 2010

NEW YORK — Shares of American Express and Capital One Financial Corp. tumbled Friday after an analyst noted coming credit card regulations could strain profits for the companies in the year ahead. American Express shares dropped $3.57, or 8.5 percent, to close at $38.59. Capital One shares sank $5.17, or 12.1 percent, to close at $37.53. In a note to investors, FBR Capital Markets analyst Scott Valentin wrote that the card industry will shrink as issuers cope with elevated chargeoff levels, higher marketing costs and new regulations. He noted that Capital One could experience the biggest contraction, given its portfolio of subprime borrowers. American Express, which traditionally caters to more affluent customers, should be less affected, Valentin wrote. Valentin cut his 2010 earnings estimate for American Express to $3.24 per share, from $3.35 per share and for Capital One to $2.25 per share from $2.50 per share. Both companies were affirmed at “market perform.” The Credit CARD Act, which goes into effect Feb. 22, will dramatically limit card issuers’ ability to raise interest rates and impose penalty fees. For example, banks will not be able to raise rates on existing balances unless payments are more than 60 days late. During a conference call Thursday, American Express Chief Financial Officer Dan Henry noted that the regulations could lower AmEx’s yields on credit cards, which were at 9.7 percent in the latest quarter. Margins at Capital One are also expected to decline to about 15.5 percent, down from 16 percent, Valentin noted. The drop-off in AmEx and Capital One shares Friday came despite improved fourth-quarter results from both companies. However, the gains came largely as a result of steep drops in provisions for loan losses. At American Express, provisions for loan losses fell 47 percent to $748 million, from $1.4 billion a year ago. At Capital One, the figure sank to $843.7 million from $2.1 billion. Quarterly revenue at American Express, meanwhile, edged lower to $6.49 billion from $6.51 billion last year. While card members’ average balances rose, the gains were offset by higher costs elsewhere. Marketing costs rose 36 percent to $713 million in the quarter. AmEx Chairman Kenneth Chenault said in a statement that while the economic outlook is improving, the company still faces the challenges of high unemployment rates and weaker household finances. Fitch Ratings, meanwhile, issued a report Friday that said chargeoffs, or loans considered unrecoverable, could become more widespread in coming months as consumers continue to struggle with debt and unemployment. The ratings agency doesn’t expect the deterioration to be severe, however. Fitch predicts U.S. unemployment will peak at 10.4 percent in the second-quarter of 2010 and will remain above the 10 percent throughout the year.

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Video: WFP’s Hurford Says Haiti Aid Delays `Very Frustrating’

January 22, 2010

Jan. 22 (Bloomberg) — Caroline Hurford, a spokesman for the World Food Programme, talks with Bloomberg’s Andrea Catherwood about the challenges of distributing aid in Haiti.

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AMERICAN SYSTEMS Selects Brian Fitzpatrick to Lead Citizen Safety Strategic Business Area

January 19, 2010

Public Sector Business Development Leader to Target Agencies Tasked With Preventing and Responding to Public Safety Challenges

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Haiti Violence Hampering Earthquake Relief Effort, U.S. General Keen Says

January 17, 2010

By Justin Blum Jan. 17 (Bloomberg) — Violence in Haiti is hampering assistance to earthquake victims in the fifth day after the disaster struck the Western Hemisphere’s poorest nation, said the U.S. Army general overseeing relief efforts. “There are increasing incidents of violence,” said Lieutenant General Ken Keen of the U.S. Southern Command , on “Fox News Sunday.” Haitian police opened fire on looters today, killing at least one as hundreds of rioters grabbed produce in a Port-au-Prince market, Agence France-Presse reported. The violent disturbances “impede our ability to support the government of Haiti and answer the challenges that this country faces,” Keen said on ABC’s “ This Week ” program. “It is a concern and we are going to have to address it,” Keen said on CNN. United Nations forces are providing security, Keen said on Fox. He said the Haitian police force was “devastated” by the earthquake and their presence is “limited.” Aid workers face a shortage of the food and medical supplies required to help Haitians trapped in the city after the 7.0-magnitude earthquake five days ago. Damage to ports and roads have slowed efforts to deliver supplies, according to U.S. officials. Keen told ABC that Haitians are “suffering a tragedy of epic proportions” and that it’s too early to determine how many have died. There are about 1,000 U.S. troops in Haiti and another 3,000 are in the region working off ships, Keen said. More troops are being sent to the region. The U.S is “working aggressively” to find ways to transport supplies to those in need, said Rajiv Shah , head of the U.S. Agency for International Development, on ABC. “The challenge is we’re talking about 3.5 million people in need,” Shah said. “We’re talking about a significant degradation of what was already relatively weak infrastructure. No port access. Roads are difficult to get around.” Rescue workers are still trying to save those who may be trapped under damaged buildings, he said. To contact the reporter on this story: Justin Blum in Washington at jblum4@bloomberg.net

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Video: Friedman Says Clean Technology Is Next Global Industry: Video

December 18, 2009

Dec. 18 (Bloomberg) — New York Times columnist Thomas Friedman talks with Bloomberg’s Ryan Chilcote about the outlook for clean technology and the challenges of finding a global consensus on carbon emission policies. Friedman, speaking from the Copenhagen Climate Conference, also discusses the role the U.S. should play in setting clean emission standards and the reluctance of the U.S. and China to make concessions for fear of benefiting the other. (Source: Bloomberg)

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Duffys Rocks » Commercial and Residential Real Estate Investing …

December 13, 2009

Investors who are prepared to deal with the challenges of multi-family real estate investing can come to the rescue of multi-family property owners for whom commercial real estate investing has lost its luster, purchase the properties …

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Realtors See Real Estate Challenges, Opportunities on the Road Ahead

November 12, 2009

As real estate continues its tenuous recovery, Realtors stand ready to meet the challenges still ahead as they Chart a Winning Course during the 2009 REALTORS Conference & Expo this week. After

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Realtors(R) See Real Estate Challenges, Opportunities on the Road Ahead

November 12, 2009

By: Nov. 12, 2009 08:29 PM SAN DIEGO, — (Marketwire) — 11/12/09 — As real estate continues its tenuous recovery, Realtors stand ready to meet the challenges still ahead as they 'Chart a Winning Course' during the 2009 REALTORS Conference & Expo this

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Knowledge@Wharton Presents the Second Real Estate Forum on December 11 at the New York Stock Exchange

November 11, 2009

Real Estate Executives and Business School Professors Tackle the Challenges of Economic Recovery in the Global Real Estate Market PHILADELPHIA–(BUSINESS WIRE)–Knowledge@Wharton, the online research and business analysis journal of

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Sunrise Senior Living tries to cope with changed market

November 11, 2009

Living, operator of 403 senior-citizen facilities, continues its struggle to work its way out from under a heavy debt load while vacancy rates for its properties continue to rise. The company’s difficulties illustrate some of the challenges confronting

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As Rents Fall on Prime Streets, Retailers Seize ‘Shopportunities’

September 23, 2009

U.S. landlords are far from alone in their challenges to lease prime retail space in the midst of a tenant’s market. According to Cushman & Wakefield’s annual “Main Streets Across the World” retail report released earlier this week, 54% of the world’s…

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Leading experts discuss investment opportunities in India

August 14, 2009

brought together an exceptional panel of leading experts to share an in-depth analysis on ‘Opportunities and Challenges of Distressed Debt Investing in India’ recently. The members of the Chamber and an exciting line-up of distressed debt investors

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