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GOP Delaying Tactics On Financial Reform On Display

by on March 11, 2010

Senator Richard Shelby, ranking Republican on the Senate Banking Committee, today issued the following statement,

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GOP Delaying Tactics On Financial Reform On Display

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Consumer Groups Rip Chris Dodd Over Financial Protection Agency Compromise

by on February 28, 2010

Consumer advocates are reacting harshly to a compromise Consumer Financial Protection Agency being proposed by Banking Committee Chairman Chris Dodd (D-Conn.). HuffPost and other media outlets have obtained a copy of a memo outlining the proposal that Dodd sent to committee members this weekend. Read the memo here . Under Dodd’s plan, “[t]he agency proposal would be dropped.” Consumer groups and labor unions had been pushing for independence as key to the agency’s success. Bank regulators, they argued, should not have authority to veto consumer protection rules, because they have the interests of the banking sector as their central priority, rather than concern for abusive practices. Consumer groups also wanted a presidentially-appointed head of the agency and an independent funding stream. Dodd’s proposal includes both of those. But without independence, the agency loses its ability to write or enforce strong rules. “We appreciate Chairman Dodd’s extensive efforts to secure bipartisan support for this critical part of the financial reform bill, but effective reform is once again being blocked by opposition from the big banks that caused the current financial crisis. The revised proposal does not provide what is needed to protect American families or the financial system as a whole: a strong, independent Consumer Financial Protection Agency with the power to set and enforce fair rules for all types of credit,” said Heather Booth, Executive Director of Americans for Financial Reform, in a statement. If AFR, a powerful pro-reform lobby, abandons Dodd’s proposal, it’ll lose major momentum in the Senate. Dodd’s proposal puts a variety of obstacles in front of the proposed agency, which would be called the Bureau of Financial Protection and housed in the Treasury Department. Each time the agency wanted to write a rule, it would have to consult with bank regulators. The agency would then have to respond to each and every bank regulator objection in the Federal Register. If the bank regulator was still unsatisfied, it could appeal to the “systemic regulator,” whose mission is to protect the safety and soundness of the banking industry. Anytime a new rule is proposed, bank lobbyists argue that it will be burdensome and make the system less safe and sound. If the systemic regulator agreed with the banks — as they often do — then the consumer protection rule would be voided. Notably, the consumer protection agency has no veto power over any rules issued by bank regulators, which demonstrates which regulator will be superior. The first concern is the banks. Dodd’s proposal is much weaker than that called for by the House and by President Obama. “Abusive lending made possible by inadequate consumer protections was a major cause of the financial crisis, and we cannot allow the status quo to continue,” said Nancy Zirkin, Executive Vice President of the Leadership Conference on Civil and Human Rights, in a statement. “Big banks and abusive lenders fought responsible regulation before the crisis, and we are all paying the price. It is unacceptable for Congress to allow them to succeed again.” The new BFP would not be allowed to enforce rules on banks with less than $10 billion in holdings, according to the memo, unless the bank regulator’s Inspector General determines the regulator is failing at its duty — an extremely unlikely scenario. The proposal also makes it nearly impossible for the agency to enforce rules against non-bank financial operations, such as payday lenders. Sen. Tim Johnson (D-S.D.), next in line to become chairman of the Banking Committee when Dodd resigns, and Sen. Richard Shelby (R-Ala.), the top-ranking Republican, are both very close to the payday lending industry. A vote on comprehensive financial regulatory reform is expected this week in the committee. AFR released the following analysis Sunday in the wake of news of Dodd’s proposal: Consumer protection responsibility for financial products has been scattered across seven different agencies, and is a low priority for them. To remedy this problem the Administration proposed creating a new independent consumer regulator that would consolidate and streamline this authority, and focus on establishing and enforcing fair rules for banks and other lenders when they deal with American families. The agency they proposed would be independent, with authority and enforcement over all lenders. The proposal was weakened in the House, due to industry opposition, but the final House bill still created a new, consolidated and independent protector for consumers and is a major improvement over what we have today. This recent revised proposal would establish a much weaker consumer regulator that would not have the autonomy or the authority it needs to effectively protect consumers from abusive financial practices. We are particularly troubled by the following proposed changes: -Loss of Independence. Under the proposal, the agency would be reduced from an independent free-standing agency to a bureau within the Treasury Department. Moreover, the same regulators who failed to stop abuses for years would have veto power over the bureau’s protections. The regulators whose decisions need to be overseen are the banking regulators who have been protecting banks while consumers suffer and American taxpayers pick up the bill. -Loss of Enforcement. As we saw in this crisis, protections only work if they are enforced. The few protections that were on the books before this crisis were routinely ignored by the existing regulators who refused to enforce them. The revised proposal substantially cuts back the already reduced enforcement authority in the House bill over most banks as well as cutting back enforcement authority over other creditors such as payday lenders … . This creates loopholes for predatory lenders and also disadvantages responsible lenders who play by the rules. We urge the Senate to stand up to the special interests and pass a financial reform bill that has a strong, independent Consumer Financial Protection Agency with the authority to make and enforce protections for American Families.

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Walgreen to Acquire New York’s Duane Reade From Oak Hill for $1.08 Billion

February 17, 2010

By Chris Burritt Feb. 17 (Bloomberg) — Walgreen Co. , the U.S. operator of more than 7,100 drugstores, agreed to buy Duane Reade Holdings Inc. from affiliates of Oak Hill Capital Partners for $1.08 billion, including debt, to expand in metropolitan New York. The cash transaction will dilute profit in the first year after closing and add to earnings the following 12 months and thereafter, Deerfield, Illinois-based Walgreen said today in a statement. Duane Reade has 257 drugstores in the New York City area, where Walgreen operates 70 locations. Walgreen said it will decide over time how to “harmonize” the two chains. Duane Reade opened its first store on Broadway between Duane and Reade streets in lower Manhattan in 1960, and had $1.8 billion in revenue in the 12 months ended Dec. 26. Walgreen, which trails CVS Caremark Corp. by sales, will also get Duane Reade’s corporate offices and two distribution centers. The transaction should close by Aug. 31, Walgreen said. Walgreen fell 48 cents, or 1.4 percent, to $33.60 at 7:50 a.m., before the start of New York Stock Exchange composite trading . The shares rose 49 percent last year. To contact the reporter on this story: Chris Burritt in Greensboro, North Carolina, at cburritt@bloomberg.net

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The Bigger The Bank, The Less People Trust Them: Survey

February 14, 2010

It’s no revelation that big banks have an image problem these days. And to add proof to what we’d already suspected, a new report from Forrester Research shows that America’s biggest banks are the least trusted banks in the country. Forrester Research ranked almost 50 financial services firms in the United States, asking approximately 4,500 people if they agree with the following statement: “My financial provider does what’s best for me, not just its own bottom line.”

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Seaway Valley Capital Corporation Updates on Subsidiaries’ Progress in Recent Months

February 3, 2010

SACKETS HARBOR, N.Y., Feb. 3, 2010 (GLOBE NEWSWIRE) — Thomas Scozzafava, President and Chief Executive Officer of Seaway Valley Capital Corporation, (Pink Sheets:SEVA), which is the majority shareholder of Hackett’s Stores, Inc. (Pink Sheets:HCKI), Harbor Brewing Company, Inc. (Pink Sheets:HBWO), Alteri Bakery, Inc., and Seaway Realty Holdings, LLC issued the following update to its shareholders today:

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Bank of Japan Holds Interest Rate Steady to Fight Deflation as Yen Climbs

January 25, 2010

By Mayumi Otsuma Jan. 26 (Bloomberg) — The Bank of Japan held interest rates near zero and said it remains committed to fighting deflation as gains in the yen risk stunting the country’s economy recovery. Governor Masaaki Shirakawa and his colleagues kept the benchmark overnight lending rate at 0.1 percent by a unanimous vote, the central bank said in a statement today in Tokyo. All 17 economists surveyed by Bloomberg News predicted the decision. The central bank left policy unchanged even as a three- week rally in the yen added to challenges for the recovery from Japan’s worst postwar recession. The board’s policy options in coming months include expanding a 10 trillion yen ($112 billion) lending program unveiled in December and buying more government bonds. “It’s highly probable the central bank will come under pressure to ease policy further as the economy loses steam,” said Teizo Taya , a former central bank board member and now adviser to the Daiwa Institute of Research in Tokyo. “The bank will likely consider expanding the lending facility, while it will try to avoid increasing bond buying as much as possible.” The yen has risen more than 2 percent against the dollar this year, threatening to erode exporters’ repatriated earnings. It traded at 90.07 as of 12:32 p.m. in Tokyo from 90.10 before the announcement. Stronger Yen Japanese manufacturers said they expect the yen to average 92.93 per dollar in the year ending March 31, the central bank’s Tankan quarterly survey showed in December. The bank last month introduced the facility of providing three-month loans at 0.1 percent after the yen soared to a 14- year high of 84.83 against the dollar and Deputy Prime Minister Naoto Kan , who has since become finance chief, said he wanted the bank to do more to aid the economy. Kan said in parliament today that the Bank of Japan has more options available to fight price declines and he hopes the central bank and the government defeat deflation as soon as possible. Shirakawa reiterated last week that stamping out deflation is a “crucial challenge” and the bank will persist with its low-rate policy. The governor has said the bank would be able expand the lending program should demand for it rise. ‘Becoming Obvious’ “The factor that could prompt the central bank to take more action is the yen’s advance,” said Junko Nishioka , chief economist at RBS Securities Japan Ltd. in Tokyo. “It’s becoming obvious” that the bank has reacted to the currency’s gains, which have threatened to destabilize financial markets and exacerbate deflation, she said. While increased liquidity injections may help restrain the yen, other options, including an expansion of the monthly 1.8 trillion yen of government bond purchases, may spark investor concern the bank is financing fiscal deficit spending. The government said yesterday that the public debt will swell to 973 trillion yen next fiscal year, prompting National Strategy Minister Yoshito Sengoku to say the fiscal situation is “more than very severe — it’s bad beyond explanation.” Bank of Japan policy makers reviewed their forecasts for consumer prices and economic growth today. Gross domestic product will expand 1.3 percent in the year starting April 1, faster than the 1.2 percent forecast in the central bank’s twice-yearly outlook in October. The board left unchanged its forecast for 2.1 percent growth in the following 12 months. Declines to Ease Consumer prices excluding fresh food will decline 0.5 percent next fiscal year and 0.2 percent in the period to March 2012, the board members said. In October, they forecast a decline of 0.8 percent for next fiscal year and a 0.4 percent drop in the following 12 months. “The BOJ has already anticipated the economy will come to a standstill, and the arrival of such a situation alone probably won’t prompt action,” said Seiji Shiraishi , chief economist at HSBC Securities Japan Ltd. in Tokyo. “Even so, should the yen advance, the bank may extend the period of loans” for the fixed-rate facility, he said. The Bank of Japan may be unique in considering additional monetary stimulus among the Group of 20 major economies this year as price declines threaten the recovery. “Even as the global economy recovers and other central banks gradually move to exit from their accommodative stances, the BOJ is unlikely to follow them while Japan remains in deflation,” said Takuji Okubo , chief Japan economist at Societe Generale SA in Tokyo. “The market should be braced for the BOJ keeping its current rate unchanged for a very, very long time.” To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net

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Abe Silk: Networking: How to Accelerate Your Job Search

January 8, 2010

The U.S. Labor Department released it’s highly anticipated job report Friday, and their news was not as good as it had unexpectedly been just a month ago. The December 2009 report revealed that jobs were actually created in the month of November, marking the first increase in employment since the onset of the recession almost two years ago. Unfortunately, the Labor Department’s latest jobs report did not maintain the same positive indication. In the last month, employers cut 85,000 jobs, suggesting that optimism regarding economic recovery may be a bit premature. The unemployment rate remains at 10%. With the job market lagging and unemployment on the rise, competition is sure to be fierce for what few job openings do exist in an expansive market. In such a climate, networking is an absolute must, though it may make some people uncomfortable. Many opportunities are never announced to the public and employers are generally more likely to grant greater consideration to applicants who can be vouched for by reliable sources. According to Brad Karsh, president of JobBound , a Chicago-based a career consulting firm, “If you’re a passive job seeker, you’re likely to remain unemployed. You have to be an active networker to land your dream job.” With that in mind, there are successful ways to network and there are counterproductive ways to network. Networking effectively can land you a job, but going about it the wrong way can hurt your chances. Take a look at the following video which takes a lighthearted look at effective and ineffective ways to network:

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Dan Solin: Business Week or "Business Weak"?

December 22, 2009

Does selling magazines justify harming investors by writing irresponsible articles about the financial markets? Apparently, Business Week believes it does. At the end of each year, it shamelessly publishes its “Investment Outlook” for the following year. Unfortunately, this year is no exception. In its ” 2010 Investment Outlook, ” Business Week peers into its crystal ball and tells investors to “figure out where wealth is being produced and grab a piece of it.” It doesn’t believe the U.S will have a “robust economic recovery”, in contrast to China or Brazil. Its most irresponsible advice relates to stock picking. Here’s the data it uses to entice its readers to engage in this discredited practice: “An investor who miraculously managed to select the top 10 stocks in the world in each market sector each year for the eight years through December 2008 would have had a cumulative return of almost 7,000%.” Raise your hand if believe anyone did that. The article encourages stock pickers to “roam the world for candidates.” Before you rush out and start “roaming the world” for under priced stocks, let’s look at the track record of Business Week . On December 20, 2007, it advised investors ” Where to Put Your Cash in 2008 .” The article was based on interviews with seven stock market analysts. It was a stellar group, including the Chief Investment Officer of UMB Financial, the Chief U.S. Equity Strategist of Citigroup, the Chief Investment Strategist of Strategas Research Partners, the Chairman of Schaeffer’s Investment Research, the Chief Investment Officer of BNY Mellon Wealth Management ( “wealth management” is a term that usually means the transfer of wealth from your pocket to your advisors), the Chief Investment Strategist of Banc of America Securities and the Chief U.S. Equity Strategist of UBS Investment Research. Surely these leading investment experts were able to predict the worst market crash in fifty years, right? Their predictions of where the DJIA would end in 2008 ranged from a low of 14,400 to a high of 15,300. The DJIA closed at 8,776 on December 31, 2008. In retrospect, some of the predictions of these “experts” are amusing, in a perverse way. One expert predicted 2008 would bring “sustainability of robust earnings.” Citgroup’s Chief Strategist (a title which, in retrospect, seems like an oxymoron) advised investors to “buy beaten down financial and retailing stocks.” Financial stocks lost 58% of their value in 2008. Business Week extolled the virtues of one of its experts, noting that he was “rated as one of the best market strategists by Institutional Investor magazine” and that he had a “strong following among the sophisticated investors who run pensions and endowments.” How could you go wrong relying on a stock guru with those credentials? He noted the “odds of a recession are low” and believed “U.S. stocks are a good buy in comparison with bonds.” The recession of 2008 was the worst recession since the Great Depression. The S&P 500 fell 38.5% in 2008. I wonder how strong his following remains with those savvy managers of pensions and endowments. Business Week could add credibility and strength by interviewing real “financial experts”, like William Bernstein, John Bogle, Burton Malkiel, Jonathan Clements, Jason Zweig, Michael Edesess, Eugene Fama and many others who would caution investors against relying on those who believe they can pick stocks or time the markets. Failing that, it should voluntarily add the kind of warnings mandated on cigarettes like: “Relying on these predictions can be harmful to your financial health.” Otherwise, Business Week should change its name to ” Business Weak .” Dan Solin is the author of The Smartest Retirement Book You’ll Ever Read. The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein. Furthermore, the information on this blog should not be construed as an offer of advisory services. Please note that the author does not recommend specific securities nor is he responsible for comments made by persons posting on this blog.

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Crib Recall List: Cribs Affected By November 2009 Recall, Checklist And Complaints

November 24, 2009

For those curious if their crib is affected by the massive cribs recall today — the largest in U.S. history — here’s a checklist to find out. Directly from the U.S. Consumer Product Safety Commission (CPSC) Web site , the following cribs are affected: -Stork Craft drop-side cribs and Stork Craft drop-side cribs with the Fisher-Price logo -Cribs with plastic trigger and one-hand-system drop-side hardware -Stork Craft cribs with manufacturing and distribution dates between January 1993 and October 2009 -Stork Craft cribs with the Fisher-Price logo that have manufacturing dates between October 1997 and December 2004 Retailers in the U.S. and Canada selling the cribs include BJ’s Wholesale Club, J.C. Penney, Kmart, Meijer, Sears, USA Baby, and Wal-Mart stores and online at Amazon.com, Babiesrus.com, Costco.com, Target.com, and Walmart.com from January 1993 through October 2009. The cribs cost between $100 and $400. Complaints prompting the recall included: -67 incidents in the United States, 43 in Canada -20 falls -15 entrapments -10 incidents of drop-side detachment -4 suffocations (all fatalities in U.S.) Those who have cribs involved in the recall can find “[T]he manufacture date, model number, crib name, country of origin, and the firm’s name, address, and contact information located on the assembly instruction sheet attached to the mattress support board” for identification and can contact Stork Craft with this information via phone or its Web site. Customers are urged to be patient contacting Stork Craft due to capacity overload at the moment.

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Big Hunter Roosevelt Saved 230 Million Acres of Wild America: Lewis Lapham

November 13, 2009

Interview by Lewis Lapham Nov. 13 (Bloomberg) — The blizzard in Yosemite came thick and fast, yet the two outdoorsmen were glad to be at Sentinel Dome. Ignoring the five feet of snow already on the ground, they built a base camp with a bed of ferns and cedar boughs. One of the men grabbed a flaming branch from the bonfire to ignite a nearby dead pine, and merrily danced a Scottish jig when the tree went up with a roar. Unable to contain himself, the other ran around shouting “Hurrah! Hurrah!” over and over. The unlikely pair communing in the wilderness were President Theodore Roosevelt , in his trademark jodhpurs and Stetson, and wilderness visionary John Muir , resembling a hobo in his oversize coat and loose pants. It was May 1903 and Roosevelt was on his Grand Loop tour of the American West, but for three precious days he ducked official duties to explore Yosemite with Muir. The two were in agreement on the urgent need to preserve forever the country’s great natural places, clashing only because both wanted to do all the talking. I spoke with Douglas Brinkley , author of “ The Wilderness Warrior: Theodore Roosevelt and the Crusade for America ” (Harper), on the following topics: 1. The Ardent Audubonist 2. Restoring the Buffalo 3. Hunting Big Game 4. Preserving America’s Monuments 5. Creating National Parks To buy this book in North America, click here . ( Lewis Lapham is the founder of Lapham’s Quarterly and the former editor of Harper’s Magazine. He hosts “The World in Time” interview series for Bloomberg News.) To contact the writer on the story: Lewis Lapham in New York at lhl@laphamsquarterly.org .

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BNP Paribas Corporate and Investment Banking Hires for Fixed Income in New York

November 4, 2009

NEW YORK, NY–(Marketwire – November 4, 2009) – BNP Paribas is pleased to announce the following appointments to its Fixed Income business in New York. Sean Farrell joins as a Managing Director to head the newly formed US Short Term team that has been created to cover accounts for both Rates and Credit short duration products. Sean brings 22 years of experience to the role including positions held at Countrywide and UBS. He reports to Patrick McKee, head of North America credit sales and Mallory Brooks, head of US Interest Rate Sales.

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Qatar’s economic growth to accelerate next year

November 4, 2009

04 Nov 2009 Emir Sheikh Hamad bin Khalifa Al-Thani has claimed that the rate of economic growth in Qatar is likely to accelerate during the following fiscal year. He said the country is set to enjo…

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Australia Says Economy to Grow Faster Than Expected, Keeps Deficit Outlook

November 1, 2009

By Madelene Pearson and Jacob Greber Nov. 2 (Bloomberg) — Australia’s government said the nation’s economy will grow faster than previously expected and the budget deficit will be in line with a previous forecast. The nation will have a cash deficit in the 12 months ending June 30, 2010, of A$57.7 billion ($51.8 billion), compared with A$57.6 billion forecast in May, Treasurer Wayne Swan told reporters today in Canberra. The economy will grow 1.5 percent compared with a May forecast of a 0.5 percent contraction. Australia’s economy is growing faster and generating more jobs than the government forecast six months ago, after record interest-rate cuts and more than A$20 billion ($18 billion) in cash handouts to consumers spurred spending. Rising household confidence and China’s demand for natural resources were among reasons central bank Governor Glenn Stevens last month raised borrowing costs from a half-century low. “The improved economic outlook reflects the effectiveness of monetary and fiscal stimulus in Australia, and the stronger global recovery,” Swan, 55, said today. The central bank, which on Nov. 6 is also due to publish revised economic forecasts, in August scrapped a prediction the economy will fall into a recession. GDP will rise 1 percent in year through June 2010 and 3.25 percent the following year, it said. GDP growth unexpectedly accelerated in the second quarter at the fastest pace in more than a year, expanding 0.6 percent from the first quarter when it gained 0.4 percent. Growth was driven by consumer and government spending, including A$22 billion on roads, railways and schools. Third-quarter figures will be published next month. IMF Forecast The International Monetary Fund last week reiterated its prediction that Australia’s economy will expand 0.7 percent this calendar year and 2 percent in 2010. Mounting evidence of an economic rebound prompted Stevens to raise the benchmark interest rate last month by a quarter percentage point to 3.25 percent, making him the first Group of 20 policy maker to raise borrowing costs since the height of the global financial crisis. Eighteen of 22 analysts surveyed by Bloomberg News expect Stevens will raise the overnight cash rate target by another quarter-point tomorrow. The rest predict a half-point increase. The government today forecast a A$46.6 billion deficit in fiscal 2010-11 with 2.75% economic growth and a A$31.2 billion deficit the following fiscal year. Inflation Outlook Inflation will be 2.25 percent this fiscal year, in line with the central bank’s annual target of between 2 percent and 3 percent. It will be the same in 2010-11, Swan said. The consumer price index rose 1.3 percent in the third quarter from a year earlier. Australia’s jobless rate , which Swan predicted in May would reach 6 percent in this year’s second quarter and 8.25 percent 12 months later, fell in September for the first time in five months, declining to 5.7 percent from 5.8 percent. The unemployment rate will rise to 6.75 percent by the June quarter of 2010, decreasing to 6.5 percent the following year, Swan said. Swan is due to release the national budget for 2010-11 on May 11 in Canberra. To contact the reporters on this story: Madelene Pearson in Canberra on mpearson1@bloomberg.net Jacob Greber in Sydney at jgreber@bloomberg.net

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Australia Plans to Release `Better’ GDP, Unemployment Forecasts, Swan Says

October 31, 2009

By Jacob Greber Nov. 1 (Bloomberg) — Australia will revise forecasts for growth and unemployment with figures “better” than those published in May, Treasurer Wayne Swan said. The government’s so-called mid-year economic and fiscal outlook will be published in Canberra tomorrow, the treasurer said in a statement on his Web site today. Australia’s economy is growing faster and generating more jobs than the government forecast six months ago, as record interest rate cuts and more than A$20 billion ($18 billion) in cash handouts to consumers spur domestic demand. Rising household confidence and China’s demand for natural resources were among reasons central bank Governor Glenn Stevens last month raised borrowing costs from a half-century low. “Because of the efforts of Australians, combined with the actions taken by the government and the Reserve Bank, our forecasts for growth and unemployment will be better,” Swan said in an e-mailed statement today. The treasurer in May predicted Australia’s economy would shrink 0.5 percent in the 12 months through June 2010, before expanding 2.25 percent the following fiscal year. The central bank, which on Nov. 6 is also due to publish revised economic forecasts, in August scrapped a prediction the economy will fall into a recession. GDP will rise 1 percent in fiscal 2010 and 3.25 percent the following year, it said. Growth Accelerates GDP growth unexpectedly accelerated in the second quarter at the fastest pace in more than a year, expanding 0.6 percent from the first quarter when it gained 0.4 percent, the statistics bureau said Sept. 2. Third-quarter figures will be published next month. The International Monetary Fund last week reiterated its prediction that Australia’s GDP will gain 0.7 percent this calendar year and 2 percent in 2010. Mounting evidence of economic rebound prompted Stevens to raise borrowing costs last month by a quarter percentage point to 3.25 percent, from a half-century low of 3 percent. The move made Stevens the first Group of 20 policy maker to raise interest rates since the height of the global financial crisis. Eighteen of 22 analysts surveyed by Bloomberg News expect Stevens to raise the overnight cash rate target by another quarter-point on Nov. 3. The rest forecast a half-point increase. Emergency Lows “Stevens has previously indicated that rates cannot stay at 50-year emergency lows,” Swan said today. The treasurer also said while the economy is performing better than the government forecast in May, when it last published predictions, recessions among trade partners such as the U.S. will have an impact on Australia’s budget. “Unfortunately the budget has still taken a big hit from the global recession, and challenges remain in areas like business investment and the terms of trade,” a measure of income from exports, Swan said. The government said in May it faces record budget deficits until 2016 as it embarks on a stimulus program to boost investment in roads, railways, ports and schools. The budget shortfall will climb to A$57.6 billion in fiscal 2009-10 and A$57.1 billion the following year, Swan said May 12. Australia’s jobless rate , which Swan predicted would reach 6 percent in this year’s second quarter and 8.5 percent 12 months later, fell in September for the first time in five months, declining to 5.7 percent from 5.8 percent. Keeping borrowing costs at “very low levels” may be “imprudent” and threaten the central bank’s goal of keeping inflation between 2 percent and 3 percent on average, the Reserve Bank of Australia said in minutes of its October meeting published last month. The consumer price index rose 1 percent in the third quarter from the previous three months, when it gained 0.5 percent, a report showed last week. To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net

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Webcast Alert: Cavco Industries, Inc. Announces Second Quarter Fiscal Year 2010 Earnings Release and Conference Call Webcast

October 30, 2009

PHOENIX, Oct. 30, 2009 (GLOBE NEWSWIRE) — Cavco Industries, Inc. (Nasdaq:CVCO) will release earnings for the second quarter of fiscal year 2010 on Thursday, November 5, 2009 AFTER the close of market. Senior Management will discuss the second quarter results in a live webcast the following day, Friday, November 6, 2009 at 11:00 AM Eastern Time.

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Webcast Alert: Closed-End Fund Conference SeriesThe Asia Pacific Fund

October 25, 2009

NEW YORK, Oct. 25 /PRNewswire-FirstCall/ — The Asia Pacific Fund (NYSE: APB) announces the following Webcast: What: Closed-End Fund Conference Series When: October 28, 2009 @ 9:45 AM Eastern Where:

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Ryan Mack: Real Investing Vs. The "Pinky Ring"

October 22, 2009

If I gave you $100,000 today how would you spend it? Before you continue to read, I want you to take a moment and think hard about this question. How would you put that money to work? After you have thought about it, which of the following two scenarios describes the best use of the funds? Scenario A: Spend $50,000 on a “caddy”, $25,000 for your pinky, and the balance on a “pound of blow”. In twenty years you will have an old pinky ring and a lot less brain cells. Scenario B: Spend $20,000 on a Honda Accord, $5,000 on a nice vacation, and invest $75,000 in your own portfolio. In twenty years you could have as much as $350,000 (with a very modest 8% return). For those who chose Scenario A, you have agreed with famous rap star Lil’ Wayne as this scenario was taken from his lyrics in his song “Stuntin’ Like My Daddy”. I listen to rap music, but we must understand that many of the lyrics in this music were written because of their ability to make money … NOT because of their contribution to our intellectual capital. I personally agree with Scenario B and so do the majority of millionaires in this country. Half of the millionaires in America have never spent over $30,000 for a car in their ENTIRE life (The Millionaire Next Door, Thomas J. Stanley and William D. Danko). One reason is they are so busy making money that they do not have much time to worry about self image. If you were TRULY wealthy, and like 5% of America who controls 95% of the wealth in America, would you care about what others thought about you? Another more important reason is they understand that as long as they are spending money on items that lose value instead of things that gain value they are less able to maintain and increase their economic status. This is why you will hear stories about Jim Walton, heir to the fortune created by his father Sam Walton (founder of Wal-Mart). He still drives a 15-year-old Dodge Dakota pickup despite being number 23 on the 2007 billionaire’s list. You may have also heard about Ingvar Kamprad, founder of multi-billion dollar enterprise and also a billionaire. He still drives a Volvo which is also 15 years old. Before he attained his fortune, his father gave him a very modest reward for doing well in school and what did he spend his money on … a “modest” furniture company named Ikea which reported revenues of $17.7 billion dollars in 2005. The question that you should be asking if you do not know and have not asked already is, “What are they spending their money on if it is not consumption?” The opposite of consumption (putting your money into assets that lose value) is production (putting your money into assets that go up in value). Four of the most common vehicles that you can invest your money into are the following: 1. Stocks 2. Bonds 3. Real Estate 4. Entrepreneurship 1. Stocks a. The outstanding capital of a company or corporation. b. The shares of a particular company or corporation. c. The certificate of ownership of such stock: stock certificate. Simply put, stock is ownership of a company. You can go to Starbucks and purchase coffee to be a customer. However, you can purchase stock in Starbucks and become part owner of the company. As an owner, you have a stake in every coffee that is purchased. The more shares you purchase, the larger your stake becomes. 2. Bonds a. A certificate of ownership of a specified portion of debt due to be paid by a government of corporation to an individual holder and usually bearing a fixed rate of interest. Both governments and corporations need to raise capital to operate. Salaries, suppliers, facilities are all examples of expenses that an employer incurs on a consistent basis. Welfare, social security, Medicaid, public schools and the Iraq war are all examples of programs and events that require a significant amount of funding from the government. One of the ways to pay for expenses and programming is to borrow from individuals by issuing bonds. If you purchase a bond you are essentially lending that entity money with their promise to return the funds borrowed PLUS interest. 3. Real Estate a. Land plus anything permanently fixed to it, including buildings, sheds, and other items attached to the structure. Whether it is your first home or purchasing a piece of investment property on the side, home ownership has always been an American dream and one of premier ways of accumulating wealth. 4. Entrepreneurship a. The organization, management, and assumption of risks of a business or enterprise, usually implying an element of change and a new opportunity. Owning and operating your own business has proven to provide the highest return of all of the stated investment vehicles. However, this investment also has the highest risk. It is a risk that is worth it because you are investing in your own ideas. There are those who want to invest in other peoples’ ideas … these investors are called venture capitalists. Before you begin investing in these vehicles, there are a few things that you must do to prepare yourself to invest, such as the following: How to Prepare a Budget: It is a must that we begin to pay closer attention to our spending habits. There is an old saying that you can tell a lot about the values of a person by looking at their checkbook journal entries. I cannot tell you how many friends who I have put on a budget and they have said things like the following: • “I would have never thought that I spent that much money at the bar in a month.” • “I need to stop eating out so much!” • “My girl is just going to have to learn to be happy with pizza!” • “I didn’t know that my closet full of sneakers was costing that much over the past six months!” The budget is the most important piece of the financial plan. It is time consuming when you first start to organize your finances in this fashion. However, as with any other financial principle and habit, we must make a diligent effort to incorporate the language and actions of economic empowerment into our daily lives. Sixty percent of America is spending more money than they earn every month because they have not learned the habit of budgeting. Eliminate Credit Card Debt: Many people feel that it is not important to eliminate credit card debt before investing in the market. Credit card debt has variable interest rates that can go as high as 30%. The national average annual percentage yield being paid by the average person in the US at the time this is being written is approximately 15%. Average credit card balance in each household in the US is around $7,000 and steadily increasing. If you have $5,000 in cash, have a credit card balance of $7,000, it does not make sense to put that $5,000 at risk to HOPEFULLY get a 15% return in the stock market when you are CERTAIN that you have to pay 15% on your credit cards. Whatever extra cash you possess, use that money to pay down your credit card debt. Prepare an Emergency Fund: It is important to have 6-9 months of living expenses saved before you invest in the market. In October of 2006 when the Detroit teachers were on strike for 8 days, there were many teachers at the Credit Union applying for loans because they didn’t have enough savings to last for much more than a week. Additionally, these savings should be placed in a high yield savings account. “High yield” refers to the interest rate on the account. In a regular checking account known to have as low as a .35% interest rate or 0%, you are losing money when you factor in inflation. Inflation is the rise of the general level of prices in the nation related to the increase in amount of money in circulation. The result of inflation is the loss of value of currency. Inflation is why you could buy a candy bar in the 70s for nickel but have to pay as much as a dollar at many stores today. Inflation is the reason that gas prices continue to increase making it more expensive to drive. If you are keeping your money under the mattress, in a safe in the basement, or anywhere that is not earning interest then your money is loosing value as you read this. Putting your money into a high yield savings account will ensure that your money will earn interest that will outpace inflation thereby retain its value and even grow in real value. Good examples of high yield savings accounts are ING Direct, Emigrant Direct, and One United Bank. I was watching CNN and saw an older gentleman being interviewed who was worth over two million dollars. That might not sound amazing to you but it is very amazing when I learned that he had never in his life earned over $11/hour. He made a practice of investing his money and living beneath his means. He made sure to include another monthly bill to pay himself within a savings/investment account on a monthly basis. Investing is not just for the rich, but for all income and age levels. The less you earn, the more important it is to be mindful of your expenditures. Less income means less financial protection to provide a cushion during financial setbacks (job loss, salary reduction, rising gas prices, or medical emergencies). Regardless of your income of financial position, it is up to you to make the decision to begin saving towards financial independence today!

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Europe Commercial Real Estate Sees Increased Investor Activity

October 22, 2009

Posting its second consecutive quarterly increase in activity, the European commercial real estate sector is enjoying a resurgence of investor confidence. … Investors with an eye on long-term equity, hoping to capitalize on yield stability and distressed bargains, are finding banks and sellers often withholding properties in an effort to outlast depressed prices. See the following article from Property Wire for more on this. Germany real estate . Frankfurt, Germany …

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El Paso Corporation Announces Realignment of Executive Committee

October 19, 2009

HOUSTON, TX–(Marketwire – October 19, 2009) – El Paso Corporation ( NYSE : EP ) today announced the following changes to the executive committee of the company: — D. Mark Leland, currently Executive Vice President and Chief Financial Officer, will become Executive Vice President and President of the Midstream Group. Mark will be responsible for a newly created midstream business unit. He has 15 years of midstream experience and was the Chief Operating Officer of GulfTerra Energy Partners, L.P., which was El Paso’s former midstream master limited partnership. — John R. Sult, currently Senior Vice President & Chief Accounting Officer, will become Senior Vice President and Chief Financial Officer. J.R. will remain the Chief Financial Officer of the general partner for El Paso Pipeline Partners, L.P. He will also be a new member of the executive committee. — Dane E. Whit

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Mark Coker: Why Publishers are Like Venture Capitalists

October 19, 2009

My roots are in Silicon Valley. For most of the last three decades, Silicon Valley was the world’s hotbed for startup innovation. Our advantage over the rest of the world was our unique ecosystem of talent and funding, and a culture that encouraged creative risk taking, creative destruction, knowledge sharing and yes, even failure. In Silicon Valley, our heroes are the risk-takers. We celebrate those who put their skin on the line to pursue a dream of changing the world. For much of these last 30 years, venture capital provided the entrepreneurs with the money, counsel and connections to make their dreams a reality. Earlier this decade, the Silicon Valley gravy train fell off the tracks. Non-stop success can breed complacency and arrogance. Many in Silicon Valley thought we possessed the secret sauce to building great tech companies. Actually, we did help invent and improve the secret sauce, but like secrets that shouldn’t be kept, the recipe spread around the world and was improved upon, so that today, promising tech companies sprout in every corner of the globe without a VC’s assistance. Silicon Valley has eaten its share of humble pie lately, and that’s a good thing for the future of our industry. For many Silicon Valley entrepreneurs, venture capital was the oxygen that breathed life into what might have otherwise remained an idea scribbled on a napkin. After all, startup creation is expensive. In exchange for the capital, the entrepreneur usually gave the VC anywhere from 20 to 60 percent of their company, and with that ownership the entrepreneur gave up control. VCs are usually super-intelligent people, yet they’re fallible like the rest of us. They have a recurring habit of getting caught up in the greed and feeding frenzy that occurs when a startup in a hot new category hits pay dirt with an IPO. Like drunken lemmings waving fists of cash, they compete against one another to fund similar startups in the same category. The ensuing competition sparks bidding wars that inflate the valuations of the companies and lead to a glut of cookie-cutter startups in the same category. Other entrepreneurs, spellbound by the razzle dazzle of the big dollars, rush to modify their startups to fit the same mold so they too can get funded. Inevitably, consolidation comes because the market can’t support so many clones. Many entrepreneurs who’ve sold their souls to a VC view VCs with equal parts admiration and contempt. Key positives: VCs offer access to capital, advisors and connections that can maximize their odds of getting their company out there. Key negatives: The VCs make promises they often can’t keep (such as “spend our money quickly, we’ll be here to give you more when you need it”); their allegiance is fleeting (VCs are legend for losing interest at the first signs of hardship); and their interests aren’t necessarily aligned with those of the entrepreneur. The last two points are the most critical. A VC’s allegiance is to their investors first and foremost, not the entrepreneur or the entrepreneur’s company. At times these interests are aligned, but more often than not they diverge. VCs play a numbers game. They understand that out of every ten companies they fund, six or seven will be outright failures, maybe two will be “base hits” or “doubles,” and then maybe one will be a home run. The one home run, like the next Cisco, Netscape, Google or what have you, makes up for the other nine duds. This desire to hit a home run will often cause a VC to manage their portfolio contrary to the best interests of the entrepreneur or their company. In other words, if you are one of the three most promising companies in a batch of ten, the VC may encourage (or force) you to take big risks and swing for the home run, even when a base hit or double is a smarter move. By forcing companies to take inappropriate risks, they do create the occasional home run, but they create many more failures along the way. One of the reasons a thousand Silicon Valleys have sprouted up around the globe is that it no longer takes the same amount of funding to create a startup. The tools to build the company are essentially free now. With low cost or free open source software, and limitless free access to knowledge (Wikipedia and Google) and relationships (social networks) acting as equalizers, more and more entrepreneurs are turning their backs on the VCs. Some will utilize angels instead. Angels are service providers or fellow entrepreneurs who have experience in the same field, and who contribute much of the same value as a VC without exacting the same quantity of flesh. Some of these entrepreneurs grow their business to profitability and then have the option, but not the necessity, to partner with a VC. Once an entrepreneur has proven the success of their business (i.e. they’ve eliminated much of the risk), they have the freedom to either forego venture funding altogether, or they can bring on the VC under more favorable terms. Fun with Words So now, my dear HuffPo reader, if you haven’t already come to your own conclusions about why publishing is like venture capital, I invite you to play the word game below to explore the allegory. Enjoy! Instructions : Copy and paste this post into a word processor as plain text. Carefully perform the following search and replace (“CTRL-H” in Microsoft Word) in the following order, and then re-read your creation: replace “entrepreneurs” with “authors” replace “entrepreneur” with “author” replace “tech companies” and “companies” with “authors” replace “startups” with “books” replace “startup” and “company” with “book” replace “VC” with “publisher” replace “venture capital” with “publishing” replace “funded” with “published” replace “an IPO” with “a bestseller” replace “service providers” with “experienced publishing professionals” replace “business” with “writing career” replace “open source software” with publishing tools like Smashwords and Wordclay” replace “venture funding” with “a commercial publisher” replace “Cisco, Netscape, Google” with “Breaking Dawn, Eragon, DaVinci Code”

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Lotte Shopping Said to Hold Talks to Buy Chinese Supermarket Company Times

October 11, 2009

By Cathy Chan Oct. 12 (Bloomberg) — Lotte Shopping Co., South Korea’s biggest department store owner, is in talks to buy a controlling stake in Chinese supermarket operator Times Ltd., rivaling a bid from Wumart Stores Inc., two people familiar with the matter said. Seoul-based Lotte Shopping is in discussions to pay cash for a 72.3 percent stake in Times from Chairman Kenneth Fang , the people said, asking not to be identified because the talks are private. Times shares have more than doubled this year in Hong Kong, taking the company’s market value to $502 million. Lotte Shopping is attempting what could be the biggest acquisition in China by a Korean company, according to data compiled by Bloomberg. The retailer, which operates a department store in Beijing, would add 65 outlets in the world’s fastest- growing major economy with a purchase of Times. Wumart said Sept. 24 it has held talks with Times. “Lotte has a small presence in China and it needs the scalability to bolster sales from the current level of operation,” said Han Kook Hee , an analyst at Mirae Asset Securities Co. with a “buy” rating on Lotte shares. “The first step is to expand through acquiring a hypermarket brand as it takes very long to build a franchise in China.” A spokesperson for Lotte Shopping, who declined to be identified, had no comment. Officials at Wumart couldn’t be reached as China was closed for national holidays last week. Fang’s secretary, Kathy Chen, declined to make him available for an interview. Lotte is pushing into developing markets by expanding in China, Vietnam, Indonesia and Russia, seeking to tap rising affluence among consumers in those countries. Times Shares Surge Wumart, Beijing’s biggest supermarket chain, plans to offer cash and stock for Times, the people said. The company said last month it has had “preliminary discussions” with Times about an unspecified possible transaction. There have been no further developments after the initial talks and there’s no assurance a deal will be struck, Wumart said. Lotte Shopping operates a department store in Beijing with Intime Department Store (Group) Co. and has fewer than 10 hypermarkets in China, Han said. The company acquired 49 percent of CTA Makro, which operates supermarkets in Beijing and Tianjin, in 2007 and bought the remainder the following year. Times said on Sept. 24 it’s in talks with “a number of participants” as part of a “strategic review,” and that it “has not yet selected a preferred partner.” The company may pick a buyer as early as this month, the people said. Shares in Times have soared 117 percent this year, beating the benchmark Hang Seng Index’s 49 percent advance. The company’s profit fell 13 percent to 77.5 million yuan ($11.4 million) in the first half as costs increased. Hypermarket Expansion Times operates 53 hypermarkets and 12 supermarkets in eastern China with a total gross floor area of about 892,628 square meters (9.61 million square feet), according to the company’s Web site. The company said in September it plans to open 17 more hypermarkets in the country. Fang started out in the garment industry and joined his family’s textile business in 1965. He founded Fang Brothers Knitting Ltd, a manufacturer of sweaters, T-shirts and jeans. In August 2006, Wumart agreed to buy a 50 percent stake in Jiangsu Times Supermarket Co. from Times’s parent. The deal was scrapped in April the following year after Wumart shares were suspended from trading and the company canceled a stock sale the same month. Wumart said Aug. 12 it planned to raise HK$1.65 billion ($213 million) by selling shares to investors including a TPG- managed fund. The supermarket chain said it will use the money to open new stores and finance possible acquisitions. To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net

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Lotte Shopping Said to Hold Talks to Buy Chinese Supermarket Company Times

October 11, 2009

By Cathy Chan Oct. 12 (Bloomberg) — Lotte Shopping Co., South Korea’s biggest department store owner, is in talks to buy a controlling stake in Chinese supermarket operator Times Ltd., rivaling a bid from Wumart Stores Inc., two people familiar with the matter said. Seoul-based Lotte Shopping is in discussions to pay cash for a 72.3 percent stake in Times from Chairman Kenneth Fang , the people said, asking not to be identified because the talks are private. Times shares have more than doubled this year in Hong Kong, taking the company’s market value to $502 million. Lotte Shopping is attempting what could be the biggest acquisition in China by a Korean company, according to data compiled by Bloomberg. The retailer, which operates a department store in Beijing, would add 65 outlets in the world’s fastest- growing major economy with a purchase of Times. Wumart said Sept. 24 it has held talks with Times. “Lotte has a small presence in China and it needs the scalability to bolster sales from the current level of operation,” said Han Kook Hee , an analyst at Mirae Asset Securities Co. with a “buy” rating on Lotte shares. “The first step is to expand through acquiring a hypermarket brand as it takes very long to build a franchise in China.” A spokesperson for Lotte Shopping, who declined to be identified, had no comment. Officials at Wumart couldn’t be reached as China was closed for national holidays last week. Fang’s secretary, Kathy Chen, declined to make him available for an interview. Lotte is pushing into developing markets by expanding in China, Vietnam, Indonesia and Russia, seeking to tap rising affluence among consumers in those countries. Times Shares Surge Wumart, Beijing’s biggest supermarket chain, plans to offer cash and stock for Times, the people said. The company said last month it has had “preliminary discussions” with Times about an unspecified possible transaction. There have been no further developments after the initial talks and there’s no assurance a deal will be struck, Wumart said. Lotte Shopping operates a department store in Beijing with Intime Department Store (Group) Co. and has fewer than 10 hypermarkets in China, Han said. The company acquired 49 percent of CTA Makro, which operates supermarkets in Beijing and Tianjin, in 2007 and bought the remainder the following year. Times said on Sept. 24 it’s in talks with “a number of participants” as part of a “strategic review,” and that it “has not yet selected a preferred partner.” The company may pick a buyer as early as this month, the people said. Shares in Times have soared 117 percent this year, beating the benchmark Hang Seng Index’s 49 percent advance. The company’s profit fell 13 percent to 77.5 million yuan ($11.4 million) in the first half as costs increased. Hypermarket Expansion Times operates 53 hypermarkets and 12 supermarkets in eastern China with a total gross floor area of about 892,628 square meters (9.61 million square feet), according to the company’s Web site. The company said in September it plans to open 17 more hypermarkets in the country. Fang started out in the garment industry and joined his family’s textile business in 1965. He founded Fang Brothers Knitting Ltd, a manufacturer of sweaters, T-shirts and jeans. In August 2006, Wumart agreed to buy a 50 percent stake in Jiangsu Times Supermarket Co. from Times’s parent. The deal was scrapped in April the following year after Wumart shares were suspended from trading and the company canceled a stock sale the same month. Wumart said Aug. 12 it planned to raise HK$1.65 billion ($213 million) by selling shares to investors including a TPG- managed fund. The supermarket chain said it will use the money to open new stores and finance possible acquisitions. To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net

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Lotte Shopping Said to Hold Talks to Buy Chinese Supermarket Company Times

October 11, 2009

By Cathy Chan Oct. 12 (Bloomberg) — Lotte Shopping Co., South Korea’s biggest department store owner, is in talks to buy a controlling stake in Chinese supermarket operator Times Ltd., rivaling a bid from Wumart Stores Inc., two people familiar with the matter said. Seoul-based Lotte Shopping is in discussions to pay cash for a 72.3 percent stake in Times from Chairman Kenneth Fang , the people said, asking not to be identified because the talks are private. Times shares have more than doubled this year in Hong Kong, taking the company’s market value to $502 million. Lotte Shopping is attempting what could be the biggest acquisition in China by a Korean company, according to data compiled by Bloomberg. The retailer, which operates a department store in Beijing, would add 65 outlets in the world’s fastest- growing major economy with a purchase of Times. Wumart said Sept. 24 it has held talks with Times. “Lotte has a small presence in China and it needs the scalability to bolster sales from the current level of operation,” said Han Kook Hee , an analyst at Mirae Asset Securities Co. with a “buy” rating on Lotte shares. “The first step is to expand through acquiring a hypermarket brand as it takes very long to build a franchise in China.” A spokesperson for Lotte Shopping, who declined to be identified, had no comment. Officials at Wumart couldn’t be reached as China was closed for national holidays last week. Fang’s secretary, Kathy Chen, declined to make him available for an interview. Lotte is pushing into developing markets by expanding in China, Vietnam, Indonesia and Russia, seeking to tap rising affluence among consumers in those countries. Times Shares Surge Wumart, Beijing’s biggest supermarket chain, plans to offer cash and stock for Times, the people said. The company said last month it has had “preliminary discussions” with Times about an unspecified possible transaction. There have been no further developments after the initial talks and there’s no assurance a deal will be struck, Wumart said. Lotte Shopping operates a department store in Beijing with Intime Department Store (Group) Co. and has fewer than 10 hypermarkets in China, Han said. The company acquired 49 percent of CTA Makro, which operates supermarkets in Beijing and Tianjin, in 2007 and bought the remainder the following year. Times said on Sept. 24 it’s in talks with “a number of participants” as part of a “strategic review,” and that it “has not yet selected a preferred partner.” The company may pick a buyer as early as this month, the people said. Shares in Times have soared 117 percent this year, beating the benchmark Hang Seng Index’s 49 percent advance. The company’s profit fell 13 percent to 77.5 million yuan ($11.4 million) in the first half as costs increased. Hypermarket Expansion Times operates 53 hypermarkets and 12 supermarkets in eastern China with a total gross floor area of about 892,628 square meters (9.61 million square feet), according to the company’s Web site. The company said in September it plans to open 17 more hypermarkets in the country. Fang started out in the garment industry and joined his family’s textile business in 1965. He founded Fang Brothers Knitting Ltd, a manufacturer of sweaters, T-shirts and jeans. In August 2006, Wumart agreed to buy a 50 percent stake in Jiangsu Times Supermarket Co. from Times’s parent. The deal was scrapped in April the following year after Wumart shares were suspended from trading and the company canceled a stock sale the same month. Wumart said Aug. 12 it planned to raise HK$1.65 billion ($213 million) by selling shares to investors including a TPG- managed fund. The supermarket chain said it will use the money to open new stores and finance possible acquisitions. To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net

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Norb Vonnegut: Are You Serious, UBS?

October 7, 2009

Grove O’Rourke here. I’ve been on book tour since September 1 with Norb Vonnegut, the author of Top Producer and the guy who created me. Last Tuesday, the Financial Times printed the following commentary from Oswald Grubel, the CEO of UBS. Separately, Mr Grubel confirmed its US wealth management business, Paine Webber, was a non-core business. “We’ve had a lot of inquiries from potential buyers,” he said. “But it wouldn’t make sense to sell at current valuations.” Mr. Grubel, are you serious? I’m a stockbroker and a competitor. I live for comments like yours. A non-core business? Guess what I’m telling your US clients now. They’re non-core … Your strengths as an organization — balance sheet and focus on wealth management as opposed to investment banking — are no longer reliable in this country … You’ve been distracted by your organization’s struggles with the IRS. Lucky for you, I’m a work of fiction. Otherwise, I’d be taking market share from UBS left and right. But you get my point. I wonder what the stockbrokers at Morgan Stanley and Goldman Sachs are saying. And what about your financial advisers in the USA, Mr. Grubel? They total about 7,900 people. I presume they’re non-core, too, just numbers in one of your Excel spreadsheets. You can bet that my firm, Sachs, Kidder and Carnegie, would invite any of your top producers to join our team. We don’t have non-core employees. Lucky for you, Sachs, Kidder and Peabody is a work of fiction that exists only inside the pages of Top Producer. What were you thinking, Mr. Grubel?

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New Layout at How to Get a Hedge Fund Job

October 3, 2009

You can email me (hunter [at] distressed – debt -investing.com) or leave a comment below. If no one has too much concern, I will use a similar, more beefed up look here. Many posts scheduled for next week as I am on vacation the following …

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Hale "Bonddad" Stewart: An Analysis of Friday’s Jobs Report

September 5, 2009

Let’s take a look at the numbers from Friday’s jobs report. The chart reveals the following points. First at the end of last year and the beginning of this year the economy was bleeding jobs. Four months ago the rate of job losses decreased from roughly 610,000 on average to about 225,000 on average. In other words, the pace of job losses is still decreasing which is good. However, The unemployment rate increase .3% to 9.7%. The unemployment rate comes from the household survey which shows in increase in the civilian labor force of 73,000 and an increase in the number of unemployed of 466,000. In addition, The number of discouraged workers (persons not currently looking for work because they believe no jobs are available for them) appears to be topping out, as does The number of people working part-time for economic reasons. However, The number of marginally attached workers (individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months) is still increasing. Now let’s break down the length of time people are unemployed. The number of people who are unemployed for five weeks and less has been decreasing since the beginning of the year. But the number of people unemployed for 5-14 weeks increased. However, The number of people unemployed for 15-26 weeks decreased and The number of people unemployed for 27 weeks and longer increased but at a far slower rate. Putting all of this together, we get the following picture. 1.) The rate of job destruction has decreased since the beginning of the year. Remember that at the end of last year the beginning of this year, the economy was losing 600,000 jobs per month. To expect that figure to turn around and print a positive number within 6-9 months is highly unrealistic. In fact, it is most possible that we’ll see job losses through the next 3-6 months. But the pace of job losses is decreasing which is good news. 2.) The increase in the unemployment rate is bad news, plain and simple. 3.) The steady size of the number of people working part-time for economic reasons along with the possible topping out of discouraged workers is also good news as it indicates a possible topping of two categories of labor under-utilization. 4.) Two of the four time periods of unemployment showed improvement last month and the worst category (people unemployed for 27 weeks and longer) showed a far slower rate of acceleration. 5.) The increase in the marginally attached and the number of people unemployed for 5-14 weeks are bad developments. Overall, this report showed improvement. The rate of job destruction is increasing, the number of people working part-time for economic reasons and discouraged workers appears to be topping, and the number people unemployed for two time periods decreased while the worst category showed a far slower rate of decrease.

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EBay Will Sell Skype Stake to Silver Lake-Led Group for About $2 Billion

September 1, 2009

By Ville Heiskanen Sept. 1 (Bloomberg) — EBay Inc. agreed to sell 65 percent of its Skype Internet-calling unit to an investor group led by Silver Lake for about $2 billion to focus on reviving sales at its main e-commerce site. The buyers will pay $1.9 billion in cash and will also give EBay a $125 million note, the company said in a statement today. Ebay, which had planned an initial public offering for Skype, will retain 35 percent of the business. The sale lessens Chief Executive Officer John Donahoe ’s dependence on a unit that he has said doesn’t fit with the rest of EBay’s operations. The company is improving its Internet- retail operations to stem customer defections to Amazon.com Inc. Donahoe’s predecessor bought Skype for about $2.6 billion in 2005 and wrote down its value the following year. The buyers also include Andreessen Horowitz, a venture- capital firm headed by Internet pioneer Marc Andreessen , and Index Ventures, a firm that invested in Skype before EBay acquired it. EBay, based in San Jose, California, gained 64 cents, or 2.9 percent, to $22.78 at 9:52 a.m. New York time in Nasdaq Stock Market trading. The stock had climbed 59 percent this year before today. Skype, started in 2002, lets people make calls from their computers to land lines and mobile phones, as well as other computers. It makes money when users call regular phones, set up voice mail and use text-messaging services. Subscriber Growth Donahoe said in May Skype’s value in an IPO could be more than $2 billion. The IPO was scheduled for the first half of 2010, and EBay said in July it was continuing its efforts to split off Skype. Skype’s revenue grew 25 percent to $170 million in the second quarter, EBay reported in July. The service added 37.3 million users in the three-month period, for a total of 480.5 million. Even as the business grew, EBay never made good on its original promise for Skype: integrating the service into its e- commerce site, so buyers and sellers could use it to discuss large purchases. EBay wrote down Skype’s value to $1.2 billion in 2006. EBay is also entangled in a legal dispute with Skype’s founders, who still own a piece of software used by the calling service and have accused EBay of breaching a licensing deal. Skype told a London court in April that it may have to suspend the service if it can’t resolve the fight. To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net

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Raymond J. Learsy: Dennis Gartman The Dean Of Commodity Traders Doesn’t Understand the Recent Move in Oil Prices. Let Me Try To Explain

August 19, 2009

There he was on CNBC on today’s “Fast Money” segment on a day the price of oil jumped over four percent by more $3.00 a barrel to over $72 / bbl To paraphrase Mr. Gartman, founder of the Gartman Letter, “when I don’t understand what is happening I get out of the market.”. Yes, accordinig to the Energy Information Administration inventories of oil dropped by some 6 million barrels this past week.. What wasn’t generally discussed was that this was a programmed drawdown of bulging oil inventories which have reached levels this year not experienced since 1991. Perhaps Mr. Gartman could answer the following question. If you were an adviser to the finance ministries to three of the richest OPEC oil producers, say Saudi Arabia , Kuwait and the United Arab Emirates, what policies would you recommend to them to capitalize on their inherent strengths to maximize their earnings from the one commodity,oil, on which their economy is dependent? Given certain realities perhaps you would reccomend the following program to them: -Each of your economies are almost exclusively dependent on your production and sales of oil to buyers worldwide. -Combined you have access to one of the greatest pools of unencumbered financial resources, the trillions of dollar deposits in your ‘sovereign wealth funds’. -These riches are directly linked to oil and the price you are able to get for it. -The price of oil is no longer determined on a ‘wet barrel’ basis, that is by prices set by posted prices nor in contract negotiations between producer and consumer for delivery of oil (wet barrels) or the occasional spot market purchase for cargos of oil at prices determined by oil commodity traders, -The price of oil for your ‘wet barrels’ is now determined as a ‘virtual price’ or ‘paper barrel’ price on commodity exchanges worldwide ranging from New York, London, Dubai, Singapore, Tokyo and on. -These markets are lacking in transparency, they are opaque. That is to say no one really knows who is buying or selling oil futures contracts on the exchanges and to what end.. Hedging, speculation, even manipulation is all in the same pot and remains illusory. -The markets are large but with significant resources (please see” The Trade That Brought Us $100/bbl Oil Teaches Us To Be Afraid, Be Very Afraid:01.07.08) one can move the markets in a desired direction, initiating trends to be followed by hedge fund traders, or simply creating an ever higher platform price, -Given the lack of transparency, given your enormous resources, why not quietly manipulate the virtual price of oil on the Commodity Exchanges in order to maximize your return on the one commodity which is the backbone of your ecnomy and your social structure. What’s that you say, it’s a good idea? -Sorry didn’t quite get that,- Did you say that is what you have been doing all along??

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Jon Younger: The Human Element: Implement Stay Interviews Before It’s Too Late

August 14, 2009

Don’t wait until your best employees start leaving. As the economy recovers, companies of all stripes and sizes will need to build back their staffing levels to handle growth. But these same companies also need to keep the competent employees already working for them. Taking employee loyalty for granted is naïve. At least some of your best employees have already started looking around for opportunities to grow and prosper beyond (or faster than) what they believe is achievable with your company. And your most aggressive competitors are undoubtedly starting to look for good people, and targeting your best and brightest. Your secret weapon is knowing why your top employees stay. And your best tactic is taking the actions required now to attract and keep them. Do you know why your best people stay? Not guess or generalize from your last employee lunch. At a recent meeting of The RBL Institute, HR executives of leading companies such as IBM and Proctor & Gamble talked about using “stay interviews” to understand what top employees want from their organizations. (Full disclosure: I am a director of The RBL Institute which is led by The RBL Group co-founder Dave Ulrich and sponsored by the HR heads of 35 global corporations.) A stay interview is the inverse of an exit interview. Exit interviews tell you why good people are leaving, but rarely in time to prevent their departure. However, a stay interview implemented consistently and well is an early warning system that shows your appreciation, identifies ways to reinforce their good will, and helps you keep them on your payroll and not someone else’s. Stay interviews often consist of the following questions: • What do you like best about your job? About working here? • What do you want more of and less of in your work? What’s one thing you’d like to change in your current role? • What’s your dream job? (Someday you would like to _____?) • What can we do to support your career goals? • What might entice you away? What would it take to get you to consider leaving? As you implement stay interviews, keep in mind the following: • One at a time. Part of the power of a stay interview is to show your best performers that you care enough to talk about their interests, goals and hopes. This is “class” not “mass”. • Listen. Don’t guide the conversation into what you want to hear or do. Instead, pay attention to what gets the employee excited and engaged. • Be straight. If there are areas where you can’t act, be clear with the individual. • Be creative in finding the win/win. More money may be off the table, but how about increasing flexibility in work schedules so an employee can attend to his young child or elderly parent? • Do not negotiate. Remember, the purpose of the stay interview is to show appreciation and remind top people that they are important to the company. Don’t pollute it by turning it into a negotiation. Stay interviews are no panacea, but a tool to help managers gain insight into what needs must be met for employees remain with the company. For example, some years ago The RBL Group was engaged to help the IT department of UBS address significant attrition. Top performers were attracted by the promised opportunity to do groundbreaking work, but a new policy pushed the more innovative work to consultants. When top performers started to leave, IT management responded by offering them more money. Wrong answer. These employees wanted to be involved in cutting edge projects. A stay interview would have given UBS this insight and helped them respond accordingly. Smart companies take fuller advantage of the stay interview technique by applying it creatively. For example, IBM uses the stay interview concept to help it to create a more inclusive work environment. Executive task forces focused on diverse populations (e.g., Asians, Gay/Lesbian) now ask diversity group members: What is required for your group to feel welcomed and valued at IBM? What can IBM do to maximize your productivity? On a “one off” basis, stay interviews help a company keep its best people, but they can also be powerful strategy for attraction and retention. But, a more systematic approach increases its value. Have every manager conduct a stay interview at least monthly and have managers meet regularly to discuss the themes that come up. What are the consistent messages the company ought to address? If so, make the changes that will help the company retain great people … and attract others. What are your experiences with stay interviews and other creative retention strategies? Jon Younger is a Partner of The RBL Group , a strategic HR and leadership systems advisory firm. Jon leads the Strategic HR practice area and is also a Director of the RBL Institute. He is co-author, with Dave Ulrich and three other principals at The RBL Group, of ” HR Competencies ” (SHRM, 2007), ” HR Transformation ” (McGraw-Hill, July 2009) and many articles. Last year he logged client work in 35 countries.

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Woman Drags Child On Leash Through Verizon Store (VIDEO)

August 3, 2009

The headline doesn’t lie: the following video really does show a woman in Alabama dragging her child through a Verizon Wireless store on a leash, and at surprising speed.

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Fitch: Assignment of Ventras Capital Advisors Will Not Impact Various Capmark CRE & SF CDO Ratings

July 30, 2009

- Fitch Ratings has reviewed Ventras Capital Advisors LLC (Ventras) as a potential replacement collateralized debt obligation (CDO) asset manager for the following commercial real estate and diversified structured finance CDOs currently affiliated with

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The Altman Companies Offer Services for Distressed Multi-Family Properties

July 27, 2009

In today’s challenging real estate market, initiated by the collapse of the ‘housing bubble’ and the following worldwide economic recession, The Altman Companies (www.altmancos.com) today announced the formation of a Distressed Property

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Legg Mason’s Miller Says `Worst Has Passed,’ Technology, Banks to Rally

July 23, 2009

By Jeff Kearns and Sree Vidya Bhaktavatsalam July 22 (Bloomberg) — Legg Mason Inc. ’s Bill Miller said “the worst has passed” for the U.S stock market and that financial and technology companies will probably lead gains. “Bargains abound in the U.S. stock market,” Miller, 59, wrote in a letter to investors in his Legg Mason Value Trust fund.

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