global

Video: FM Global’s Subramaniam Discusses History of Insurer

April 19, 2011

April 19 (Bloomberg) — Shivan Subramaniam, chairman and chief executive officer of FM Global, talks about the history of the commercial property insurer. He speaks with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: CGES’s Drollas Says Oil Price May Rise to $135 This Year

April 18, 2011

April 18 (Bloomberg) — Leo Drollas, deputy executive director of the Centre for Global Energy Studies, discusses the outlook for oil production by members of the Organization of Petroleum Exporting Countries. He talks with Maryam Nemazee on Bloomberg Television’s “The Pulse.”

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G20 Backs Early-Warning Plan Against Future Crises

April 17, 2011

WASHINGTON (Daniel Flynn and Wanfeng Zhou) – Leading world economies agreed on Friday to put the policies of seven major nations under a microscope as part of a plan to prevent a repeat of the global financial crisis. The pact was agreed by the Group of 20 nations after months of wrangling highlighted by China’s fears that its policy of limiting its currency’s rise was being targeted. Under the deal, the International Monetary Fund will look at national levels of debt, budget deficits and trade balances to determine if a nation’s policies are putting the global economy at risk and should be changed. One potential shortcoming is that countries will not be bound to follow any recommendations that emerge. French Finance Minister Christine Lagarde said the agreement marked “huge progress” on the path to more balanced world growth and said seven major economies would automatically be subject to review. Others could face scrutiny as well if their policies are found to be stoking global risks. “The net is a little bit tighter for those countries that are considered of systemic importance,” Lagarde said. France is president of the G20 this year. Countries representing more than 5 percent of the combined output of the G20 will be examined by the IMF under the deal. The list would include the debt-burdened United States and export-rich China — the two main economies at the heart of the debate over global imbalances. France, Britain, Germany, Japan and India would round out the list, officials said. “Our aim is to promote external sustainability and ensure that G20 members pursue the full range of policies required to reduce excessive imbalances,” G20 finance officials said in a communique issued at the close of a full-day meeting. Many economists say global imbalances — notably the gaping and persistent U.S. trade gap and correspondingly large surplus in China — laid ground for the 2007-2009 crisis, which ended with the worst global recession since World War II. The G20 has become the main forum to prevent similar boom-bust cycles. Agreeing on how best to do that has grown difficult now that the darkest days of crisis have passed. Eswar Prasad, a senior fellow at the Brookings Institution and former IMF official, said the real test of the latest plan from the G20 rich and emerging economies will come once all the numbers are filled in and countries have to answer for policies that are deemed a danger to the world. “Once the numbers are put on the table, that’s when you’ll start to see the pushback,” he said. The G20 appeared to offer room for countries to sidestep criticism. “National circumstances will … be taken into account,” it said without elaboration. It said the global recovery was strengthening but warned of continued risks, including the political unrest in the Middle East and North Africa and the disasters in Japan. PROGRESS ON CAPITAL CONTROLS Officials also agreed to keep working on a framework for determining when countries can use controls over capital inflows — a sensitive topic for emerging market nations that are fighting inflation stoked by “hot money” from countries with low interest rates, such as the United States. Brazil has resisted efforts to restrict the use of capital controls. “We don’t want high levels of global liquidity to turn into problems for the Brazilian economy,” the country’s central bank chief, Alexandre Tombini, said on Friday. European Central Bank Governing Council member Christian Noyer said officials “made enormous progress” on the issue. “We do not any more have two fronts, one saying there should be total freedom and never any measure taken, and the other saying each country should have total faculty to do whatever it feels necessary,” he said. Policymakers from advanced economies, led by the United States, have argued that emerging nations can combat inflows and price pressures by allowing their currencies to strengthen against the dollar. They say if countries such as China were to do so it would help balance world trade. Emerging nations, in contrast, blame near zero interest rates in the United States for sending investors elsewhere in the search for returns. Despite efforts by Brazil to weaken its real currency, it hit a near two-year high this week. While China had been especially wary about the effort to set up a monitoring process, it welcomed the G20 accord. Chinese Vice Finance Minister Zhu Guangyao said the agreement “fully reflects each country’s demands,” including “reforming the international financial system and strengthening financial regulation.” “We’re satisfied with the results,” he said. Lena Komileva, an economist at Brown Brothers Harriman, said officials were still a long way from securing the future of the world economy. “The global recovery has been achieved at the price of a record U.S. budget deficit and overheating in emerging markets such as China,” she said. “This is not a sustainable platform for global economic stability.” (Reporting by Reuters IMF/G20 team; Writing by Steven C. Johnson and Glenn Somerville; Editing by William Schomberg, Leslie Adler and Tim Ahmann) Copyright 2011 Thomson Reuters. Click for Restrictions .

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IMF Nations Discuss ‘Significant Risks’ Of Rising Global Food Prices

April 17, 2011

WASHINGTON (Lesley Wroughton and Isabel Versiani) – International Monetary Fund member countries sought to bridge sharp differences over the global economy, acknowledging that rising inflation in emerging markets poses a risk to rich countries too. Addressing one of their biggest challenges, the 187 IMF nations on Saturday recognized the alarm among developing countries about huge inflows of speculative cash that are stoking their growth but also their inflation rates. “When inflation goes up in emerging markets, it’s not just an emerging market problem, it’s a global inflation and possibly interest rate problem,” said Singapore Finance Minister Tharman Shanmugaratnam, who chairs the IMF’s steering committee. Top finance officials, in Washington for a twice-yearly meeting of the IMF, argued over the dangers posed by high government debt and super-low interest rates in sluggish, rich countries and the risk of overheating in developing economies. “It’s one of the most difficult policy moments, one of the most complex challenges I’ve ever seen, certainly in my lifetime,” Angel Gurria, head of the Organization for Economic Cooperation and Development, told Reuters. The increased focus on the pitfalls in the policies of wealthy nations is part of a shift at the IMF to be more attentive to increasingly influential emerging powers. Countries such as Brazil have struggled to cope with waves of yield-chasing “hot money” which pushes up inflation. World Bank President Robert Zoellick called rising food prices “the biggest threat to the world’s poor.” The World Bank estimates another 10 percent rise in the food price index could add 10 million more people to the 44 million already thrust into poverty over the last year. “We risk losing a generation,” Zoellick said. Aware of stiff opposition in some emerging countries to any limits on how they manage the inflows that drive up prices, IMF members said the policies that lead investors to chase higher returns in other emerging economies also need oversight. Tharman said inflation in the developing world, if unchecked, could spread to rich economies already shouldering large deficits. That would push up borrowing costs and threaten the recovery from the worst global recession in decades. “We have learned from painful experience in the last few years that nothing is isolated and that risk in one region…. rapidly gets transmitted to the rest of the world,” he said. The IMF committee said the global economy was strengthening but that policy action was needed given “significant risks.” It also sought proposals to strengthen IMF surveillance of “countries that pose the largest systemic risks.” The Group of 20 developed and emerging economies on Friday delayed a decision on contentious guidelines for when countries may use capital controls. French Finance Minister Christine Lagarde said “it seems vital to have a common set of rules.” France chairs the G20 this year and is seeking a deal on capital controls in time for a G20 leaders summit in November. The G20 did agree on Friday to a plan that could put more pressure on the United States to fix its deficits as well as push other leading economies, including China, to address their own shortcomings. Gurria said “sometime in the fall or this time next year, maybe inflation will have a higher profile” in G20 talks. IMF SHIFT ON CAPITAL CONTROLS The IMF this month endorsed use of capital controls, once considered anathema to its free-market philosophy. Advanced countries want to establish a framework to monitor their use, an approach emerging markets oppose. “Ironically, some of the countries that are responsible for the deepest crisis since the Great Depression and have yet to solve their own problems are eager to prescribe codes of conduct to the rest of the world,” Brazilian Finance Minister Guido Mantega said. Brazil, with one of world’s highest official interest rates at 11.75 percent, is among the countries that have used taxes and other measures to curb inflows. But rate hikes designed to cool growth end up attracting still more money from abroad. U.S. and other rich countries have long argued that emerging countries can combat inflows and price pressures by allowing their currencies to strengthen against the dollar. China, the world’s biggest exporter, has rebuffed acute U.S. pressure to let the yuan rise more rapidly, though Premier Wen Jiabao this week said the country should resort to more exchange rate flexibility to combat rapidly rising prices. Consumer price increases accelerated in both China and India in the year to March. GETTING FISCAL HOUSES IN ORDER Some finance officials said ultra-loose monetary policies and rising budget deficits in the United States and other advanced countries posed the main threat to global recovery. “The fiscal situation in the advanced economies gives us great concern, and it is in this area that we see the major risks to the global economy,” said Russian Finance Minister Alexei Kudrin. The IMF this week noted that the U.S. budget gap was on course to hit 10.8 percent of economic output this year, tying Ireland for the highest ratio of deficit to total output among advanced economies. It urged Washington to tighten its belt. At Saturday’s meeting, U.S. Treasury Secretary Timothy Geithner said the United States was “committed to fiscal reforms that will restrain spending and reduce deficits while not threatening the economic recovery.” Leaders also fretted about fiscally strapped euro zone countries and their ability to refinance their massive debts. (Reporting by Reuters IMF/G20 team; Writing by Steven C. Johnson; Editing by William Schomberg and Leslie Adler) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Democracy Now!: Offshore Banking and Tax Havens Have Become the Heart of Global Economy

April 16, 2011

As millions of Americans prepare to file their income taxes ahead of Monday’s deadline, Democracy Now! interviews British journalist Nicholas Shaxson about how corporations and the wealthy use offshore banks and tax havens to avoid paying taxes and other governmental regulations. “Tax havens have grown so fast in the era of globalization, since the 1970s, that they are now right at the heart of the global economy and are absolutely huge,” Shaxson says. “There are anywhere between $10 and $20 trillion sitting offshore at the moment. Half of world trade is processed in one way or another through tax havens.” Shaxson is the author of the new book, Treasure Islands: Uncovering the Damage of Offshore Banking and Tax Havens . Read the entire interview transcript Join us on Facebook and share with a friend!

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José Viñals: Avoiding Another Year of Living Dangerously: Time to Secure Financial Stability

April 13, 2011

In various guises, the “Year of Living Dangerously” has been used to describe the global financial crisis, the policy response to the crisis, and its aftermath. But, we’ve slipped well beyond a year and the financial system is still flirting with danger. Durable financial stability has, so far, proven elusive. Financial stability risks may have eased, reflecting improvements in the economic outlook and continuing accommodative policies. But those supportive policies–while necessary to restart the economy–have also masked serious, underlying financial vulnerabilities that need to be addressed as quickly as possible. Many advanced economies are “living dangerously” because the legacy of high debt burdens is weighing on economic activity and balance sheets, keeping risks to financial stability elevated. At the same time, many emerging market countries risk overheating and the build-up of financial imbalances–in the context of rapid credit growth, increasing asset prices, and strong and volatile capital inflows. Here is our suggested roadmap for policymakers to address these vulnerabilities and risks, and achieve durable financial stability. Heeding the warning signs Challenges in four key areas put financial stability at risk. Confidence in the banking system has yet to be fully restored, nearly four years since the start of the global financial crisis. Progress in strengthening capital positions and reducing leverage has been uneven. There is considerable uncertainty about the quality of some bank assets, particularly exposures to higher-risk sovereigns and real estate in some countries. And a weak tail of undercapitalized banks remains. We have analyzed the sample of banks that European authorities used in last year’s stress tests. This snapshot of end-2010 data revealed that 30 per cent of these banks–representing a fifth of their total assets–have Core Tier 1 capital ratios of less than 8 percent. This makes them less able to withstand shocks and secure cost-effective funding. To solve these problems, we need comprehensive policies to increase bank transparency, raise capital buffers, and restructure and resolve weak banks. The forthcoming stress tests by the European Banking Authority are an important opportunity to assess the health of the EU banking system. But the tests need to be credible, stringent, and part of a broader crisis management strategy that includes backstops against capital shortfalls. Sovereign balance sheets remain under strain in several advanced economies. Certain countries in the euro area are especially at risk, because market concerns about the sustainability of public debt have prompted a sharp increase in funding costs and restricted credit supply, creating an adverse feedback loop with the real economy. These financial stability risks need to be addressed through strategies that combine medium-term budget deficit reduction with adequate multilateral backstops for crisis countries. Sovereign funding challenges could extend beyond the euro area. Both the United States and Japan are sensitive to higher funding burdens if interest rates increase substantially from current levels. Consequently, these countries need to take decisive action to ensure the sustainability of their public finances over the medium term. Household indebtedness in the United States remains elevated. This could negatively affect bank balance sheets, credit availability, and house prices. And, this could be a drag on the global economic recovery. More structural policies may be needed to address high household debt, including principal write-downs on mortgages. Our analysis shows that US banks are strong enough to withstand sizeable reductions in the principal of risky mortgages. Policymakers in emerging markets need to guard against overheating and a buildup of financial imbalances. A number of factors point to the incubation of financial imbalances, including: Exceptionally strong bank credit growth in some countries. Experience shows that there is a close connection between high credit growth and future increases in non-performing loans. Strong, and more volatile, capital inflows. Capital inflows are not yet excessive, but recent volatility has already tested the absorptive capacity of some emerging markets. Putting danger behind us So what can policymakers do to achieve durable financial stability? Advanced economies need to deal with the legacy of the crisis–effectively and immediately. They must reduce their reliance on policies that mainly responded to the symptoms of the crisis, and increase their focus on measures that address the underlying causes. In particular, they need to fully repair their banking systems, strengthen sovereign balance sheets, and reduce household debt burdens. By contrast, emerging economies need to act–before it’s too late–to avoid future crises. Given the risk of overheating and financial imbalances, policymakers need to make more, and better, use of macroeconomic measures, such as official rate hikes, more flexible exchange rates, and fiscal tightening. Macroprudential policies and, in some cases, capital controls can play a supportive role. Of course, internationally consistent regulation is the cornerstone on which a safer global financial system can be built. Advanced economies and emerging markets, therefore, have a shared responsibility to press ahead with regulatory reforms. No one said it was going to be easy The task ahead is not easy. There are very real risks: risks of complacency; of fatigue; or reluctance to make hard policy choices. Action is needed now to ensure that the outstanding threats to global financial stability are dealt with once and for all. And only through international cooperation can those actions prove fully effective. The global economic recovery will be on firmer ground only if we achieve durable financial stability. From iMFdirect blog

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CoStar Q&A: Cushman & Wakefield/Americas CEO Jim Underhill Lays Out Firm’s U.S. Growth Strategy

April 13, 2011

In October, Cushman & Wakefield named Washington, D.C.-based James M. Underhill chief executive officer of the Americas, the company’s largest operating region. The move is a significant shift for the company as the first time that any executive outside of Cushman’s New York City power base has led the global real estate services firm’s North and South America operations, which bring in some 70% of its annual revenues. Underhill oversees the company…

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CoStar Q&A: Cushman & Wakefield/Americas CEO Jim Underhill Lays Out Firm’s U.S. Growth Strategy

April 13, 2011

In October, Cushman & Wakefield named Washington, D.C.-based James M. Underhill chief executive officer of the Americas, the company’s largest operating region. The move is a significant shift for the company as the first time that any executive outside of Cushman’s New York City power base has led the global real estate services firm’s North and South America operations, which bring in some 70% of its annual revenues. Underhill oversees the company…

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Level 3 Communication’s buys Global Crossing

April 11, 2011

Level 3 Communication’s buys Global Crossing

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Video: Maughan Says ECB Rate Rise May Help Banks Build Capital

April 7, 2011

April 7 (Bloomberg) — Simon Maughan, co-head of European equities at MF Global, talks about the effect of a possible increase in euro-zone interest rates on banks’ balance sheets. He speaks with Mark Barton on Bloomberg Television’s “On The Move.”

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Dominique Strauss-Kahn: Nanjing and the New International Monetary System

March 31, 2011

I am delighted to be back in China this week for a high-level seminar in Nanjing on the international monetary system . Every time I come to this part of the world, I am impressed by the dynamism of the economies and the optimism of the people. The future is here. The region’s economic performance over the past few decades has been nothing short of remarkable. Asia now accounts for about a third of the global economy, up from under just a fifth in 1980. This trend has been reinforced by the crisis, with the emerging market powerhouses leading the global recovery. Asia has also made tremendous progress with poverty reduction. China alone has pulled hundreds of millions of people out of poverty over the past few decades. Such a feat has never before been accomplished in the history of human civilization. But to sustain this progress, Asia needs to grapple with numerous challenges today, among them the need to deal with overheating pressures and volatile capital inflows. And this relates directly to our discussion at Nanjing . The current international monetary system has certainly delivered a lot. But it also has flaws that need to be fixed, especially if the next phase of globalization is to succeed in bringing a strong and broad-based rise in living standards. I see four pressing issues: Imbalances across and within countries. We need stronger cooperation to promote effective global adjustment and discourage countries from running policies that lead to global imbalances. The G20 Mutual Assessment Process and the IMF’s “spillover reports” for the five most important systemic economies–which look at the effects of country policies across their borders–are steps in the right direction. More ambitious ideas, including a strengthening of countries’ multilateral obligations and of accountability mechanisms for these, are also worth discussing. No framework to oversee capital flows. Everybody knows that capital flows can sometimes be destabilizing. This is something many countries worry about. But we do not have globally agreed “rules of the road” on what they should do. Sometimes we need to look at old ideas with a fresh perspective, and we are developing more of a consensus view. In the past, capital controls were not in our toolkit. Today, we see them more as part of the toolkit, although only in specific circumstances and not, of course, as a substitute for good macroeconomic policies. Inadequate global liquidity. We need to strengthen the global financial safety net, to reduce the need to “self-insure” by building up costly reserves buffers. There are a number of options here. One possibility is to strengthen partnerships with regional financing arrangements. Another is to improve the predictability of the provision of systemic liquidity more generally. Too few options for safe global assets to meet the demand. The question here is how to diversify reserve assets. One option is to encourage greater international use of currencies other than the four currently in the SDR basket, including those of large dynamic emerging markets. Over the longer term, the SDR itself could play a greater role. These issues go right to the heart of the IMF’s mandate, and their resolution will require further engagement and discussion among our global membership. Certainly, they are challenges in which all global citizens have a stake–to support an ongoing recovery and avoid future crises, ensuring better outcomes for all. The Nanjing meeting was a useful step toward the international monetary system of the future. And speaking as the head of the IMF, it was also a useful step in advancing the partnership between Asia and the Fund. A partnership that I firmly believe will continue to strengthen in the future. From iMFdirect blog

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Certain Software Expands Senior Leadership Team

March 31, 2011

Industry Veteran, John Correia, Joins Company as Vice President, Global Services

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Dominique Strauss-Kahn: Latin America’s Twin Challenges — Increasing Rate of Growth and Managing Volatility

March 28, 2011

Earlier this month, I had the opportunity to discuss Latin America’s regional outlook with government leaders, parliamentarians, and university students in Brazil, Panama, and Uruguay. The key conclusion that I took away from these meetings is that Latin America faces two principal economic challenges: to increase the sustainable rate of economic growth and to reduce the volatility of growth. In my meeting in Calgary on March 26 with Finance Ministers of the region, I focused on the second challenge so that favorable conditions today do not come at the expense of a bust tomorrow. It’s a nice coincidence that this meeting of Finance Ministers of the Americas and the Caribbean was held here in Calgary. Canada is a good example of “managing the good times,” but as in many countries across the globe, some challenges remain. Managing the good times Turning to Latin America, here are three ways in which the region can reduce its vulnerability to wide economic fluctuations. First, sound economic policies. One of the reasons the region weathered the global financial crisis relatively well is that it had made significant gains in improving economic fundamentals in the years leading up the crisis. This included reducing inflation and public debt, improving the composition of debt, strengthening fiscal institutions, introducing greater exchange rate flexibility and credible monetary regimes, and building up foreign reserves. This progress should continue. Second, financial stability. As the region becomes increasingly integrated in the global economy, it will also become more exposed to the volatility of capital flows. At the same time, financial deepening, though welcome, can bring its own challenges, for example, the risk of credit bubbles. This calls for continued efforts to strengthen the financial system. In particular, regulators and supervisors should be empowered to take early preventive action–including using macroprudential tools. Third, a more diversified economy. There is no simple recipe for achieving the diversification needed to reduce vulnerability to specific external shocks. But countries should continue efforts to foster new sources of growth. More public funding for infrastructure and human capital development can help. Improvements in the business climate–which in some countries includes security–and overall governance are also essential to attract private investment. What does all this mean now? Growth in most Latin American economies is now back at potential, or above–and in many of them there are worrisome signs of overheating. Clearly, the earlier economic stimulus needs to be reversed. Furthermore, a range of policies could be used to prevent overheating and dampen the credit cycle, including upward exchange rate flexibility, a more appropriate mix of monetary and fiscal policies, and adequate financial regulations–including a macroprudential approach. In some cases, capital controls might also be useful. But they should not substitute for fundamental policy adjustments. Finally, I also talked about sharing the benefits of growth more broadly. While the region has enjoyed tremendous social gains, poverty and income inequality remain high in Latin America compared with other regions. To have more equitable growth, efforts should center on strengthening the provision and quality of education, health, and public infrastructure. This includes better targeting of government spending and strengthening social safety nets. From Diálogo a Fondo , the IMF’s blog for Latin America.

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IRS Drastically Increases Its Audits Of America’s Richest Taxpayers

March 27, 2011

In 2009, the Internal Revenue Service announced plans to unleash a new enforcement unit called the Global High Wealth Industry, the goal being to better investigate the complex finances of America’s wealthiest taxpayers. They weren’t kidding. Recently released IRS statistics indicate that the federal government increased their audits of America’s richest taxpayers — those with incomes above $10 million — by 75 percent last year. Nearly one in five — 18.5 percent — of America’s richest households dealt with an audit. In 2009, the Global High Wealth Industry’s first year of operation, the IRS audited only one in ten of America’s richest taxpayers. Complex tax evasion has become an increasing problem in recent years, with popular strategies including conversion of income into capital gains and stashing cash in Swiss banks . Audit rates also increased among some lower income brackets, but none so much. The second highest audit increase was among the second highest income bracket: those reporting incomes of $5M-$10M. They saw a 55 percent increase in their audit rate, totaling 11.6 percent. High, but much smaller than the increase experienced by the $10M-plus bracket. Audits rate for those with incomes between $1-$75K remained largely the same. Overall, the IRS increased the percentage of audits by about 11 percent from the year prior. That means 1.58 million tax returns — about 1.11 percent of all returns filed — were audited, costing the IRS about 53 cents per $100 collected — a 3 cent increase from 2009. Criminal investigations by the IRS also increased by 14.2 percent this year, according to Businessweek . Demographic breakdowns of the alleged criminals are unavailable.

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Video: Saluzzi Doubtful U.S. Firms Can Pass Along Higher Costs

March 24, 2011

March 24 (Bloomberg) — Joseph Saluzzi, co-head of equity trading at Themis Trading LLC, and John Brady, senior vice president at MF Global Inc., talk about the outlook for stocks, corporate earnings and the U.S. economy. They speak with Carol Massar, Matt Miller and Julie Hyman on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Bausch + Lomb Appoints David Mordaunt, Ph.D. as Vice President, Development and Research, Surgical

March 24, 2011

ROCHESTER, NY–(Marketwire – March 24, 2011) – Bausch + Lomb, the global eye health company, announces the appointment of David Mordaunt, Ph.D. as vice president, Development and Research, Bausch + Lomb Surgical.

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Japanese Automakers Further Delay Restarting Factories

March 22, 2011

TOKYO (Reuters) – Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) cut output at five more plants and Toyota Motor (7203.T: Quote, Profile, Research, Stock Buzz) further delayed restarting its Japanese assembly lines, as the country’s catastrophic earthquake plays havoc with the global supply of parts and products. Global electronics and autos companies have been hardest hit by the turmoil, but in an illustration of how the ripples are spreading, global miner Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) (RIO.AX: Quote, Profile, Research, Stock Buzz) warned the disruptions posed a threat to its expansion plans. More than 10 days after a 9.0 magnitude earthquake and 10-meter tsunami struck the northeast of Japan, manufacturers are struggling to get back up to speed as factories grapple with power cuts, crippled infrastructure and a shortage of parts. Such is Japan’s position in the global supply chain that companies from Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz) to General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) and Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) are feeling the impact. Toyota, the world’s largest automaker, said all 12 Japanese assembly plants would remain closed until at least Saturday and it was not sure when they would reopen. Production lost between March 14-26 would be about 140,000 units. Toyota had hoped to have resumed assembly on Tuesday. Electronics giant Sony said five more of its plants, mostly in central and southern Japan, were hit by parts shortages stemming from the disaster and would close or reduce output until the end of the month. “If the shortage of parts and materials supplied to these plants continues, we will consider necessary measures, including a temporary shift of production overseas,” the maker of PlayStation games consoles said in a statement on Tuesday. The plants make products such as digital and video cameras, televisions and microphones, Sony said. A sixth plant in Chiba, north of Tokyo, was set to resume production on Tuesday, but it could be interrupted by rolling blackouts that are affecting some areas supplied by Tokyo Electric Power (TEPCO) (9501.T: Quote, Profile, Research, Stock Buzz), the operator of the stricken Fukushima nuclear plant. Including two factories only partially restarted last week, 15 of Sony’s 25 Japanese plants are currently affected. It has a total of 54 plants worldwide. TECH CHAIN VULNERABLE Japan’s grip on the global electronics supply chain is causing particular concern. It produces around a fifth of the world’s computer chips and exported 7.2 trillion yen ($91.3 billion) worth of electronic parts last year, research from Mirae Asset Securities shows. “There are a huge number of little bits of the high-tech food chain which are done nowhere but in Japan,” said Sam Perry, senior investment manager of Pictet Japanese Equity Selection Fund. “Nobody else has the quality or the consistency, and in some cases the technology, to do it.” Japan dominates with the supply of LCD film and sealants for semiconductors, among other areas, Perry added. “You simply can’t do high-tech without Japan.” Fujifilm Holdings (4901.T: Quote, Profile, Research, Stock Buzz), the largest producer of triacetyl cellulose film used in making LCD panels, said its main factories are all west of Tokyo and were not directly affected. It has other facilities in northeast Japan, but said any disruptions were unlikely to damage its earnings. Konica Minolta (4902.T: Quote, Profile, Research, Stock Buzz), the second-largest maker of the LCD film, said its three factories in the Tokyo region had been affected by the rolling power cuts. Company officials declined to specify what these factories produce. Camera and copier maker Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz), which has suspended all its domestic camera production until at least Thursday, said a lack of gasoline was affecting distribution and stopping staff getting to work in areas such as the island of Kyushu, where train services are minimal. Nikon (7731.T: Quote, Profile, Research, Stock Buzz), which makes cameras and precision equipment, said it expects to resume production at all its north Japan plants by the end of March, but warned power cuts and shortages of parts could make a return to full production difficult. Renesas Electronics Corp (6723.T: Quote, Profile, Research, Stock Buzz), the world’s No.5 chipmaker, restarted operations on Saturday at a semiconductor plant in Yamagata prefecture, in northwest Japan, a company spokeswoman said on Tuesday — leaving output suspended at six of the firm’s 22 factories in Japan. RIPPLES SPREAD Rio Tinto, the world’s No.2 iron ore miner behind Brazil’s Vale (VALE5.SA: Quote, Profile, Research, Stock Buzz), is worried the disaster will disrupt supplies of mining equipment, tires and parts, which could set back some of its expansion plans. “The impact of the Japanese earthquake and tsunami have been many and diverse, and they affect us,” Rio’s head of iron ore Sam Walsh told an industry conference in Perth. “Some steel mills have suspended operations and suppliers of heavy equipment, such as Hitachi, have been impacted,” he said. Hitachi Construction (6305.T: Quote, Profile, Research, Stock Buzz), Japan’s No.2 maker of earthmoving equipment, said five plants in Ibaraki prefecture, north of Tokyo, closed after the quake. Three have partially reopened, but there is no timetable for re-opening the others. Tsunami damage to the nearest port means Hitachi is shipping some products from Yokohama, near Tokyo. Car makers are also struggling to get production lines restarted. On top of Toyota’s delays, Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) (HMC.N: Quote, Profile, Research, Stock Buzz) was also extending its production suspension until Sunday from Thursday. A fifth of Honda’s leading Japan-based suppliers affected by the earthquake have said it will take “more than a week” to recover, Honda said late on Monday. In a sign of some return to normality, Japan’s top three steelmakers reported some progress in restoring production. Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) said output at the three blast furnaces at its mainstay plant in eastern Japan had recovered to pre-quake levels, while JFE Steel Corp (5411.T: Quote, Profile, Research, Stock Buzz) said two blast furnaces at its 10 million tonnes-a-year plant near Tokyo were now operating normally. (Additional reporting by Junko Fujita and Nathan Layne in TOKYO and James Regan in PERTH; Writing by Lincoln Feast, Editing by Ian Geoghegan) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Mindjet Targets 50% Revenue Increase and Announces Growth Plans for Latin American Market

March 22, 2011

Taps Global Sales Veteran, Rudy Arguello, to Head Region Operations

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Robert Lenzner: The Double Whammy Of Libya And Japan Mean Higher Oil Prices

March 22, 2011

Further escalation of the Libyan conflict is “a much greater threat to the global financial markets than the radiation leaks in Japan,” writes CLSA’s Christopher Wood this morning. Add in further interest rate tightening in China and the World Bank prediction that it will take 5 years to rebuild Japanese infrastructure and you’ve got the recipe for a slower global economy. Wall Street is just waking up to the aftershock of the Japanese earthquake and tsunami — the global supply chain of just-in-time delivery of electronic and auto parts from Japan. The basis of much productivity and profit gains in recent years has been severely interrupted. Industrial production of batteries, circuit boards and parts for Toyota and Nissan autos will cause a slowdown in global commerce. No doubt about it. The only trade Streettalk sees good as gold is crude oil, which is already up 17.62% in a month. I’d be long crude oil futures and global producers away from the Middle East. And for good measure I’d own a coal producer like Peabody Energy, which is bound to profit from the blow to nuclear power, and the rising cost of oil. You’re looking at unrest rolling across the region; demonstrations in Syria, a state of emergency in Yemen, a Day of Rage Protest in Saudi Arabia and he little understood prospect of continuing risks in the oil producing areas of Kuwait and Saudi Arabia where Shiite population present a threat to stability. What’s more: crude oil demand in the US rose 4.4% last month, further indication of a recovering economy. Add in the very real blow to nuclear power prospects by the the existence of iodine and cesia in the Tokyo tap water and the uncertainty of getting the reactors in northern Japan completely under control and in repair. This Japanese meltdown has reduced electric power in Japan. It has caused the Chinese to review plans for their building of 37 additional nuclear plants and caused the Germans to review the safety provisions of 7 nuclear facilities. Face it: the conflagration in Libya will be over soon. But the entire Middle East will never be the same. The new $67 billion Saudi royal family bribe for popular support is a bloody sign of weakness. The only timetable you can count on is an uneven, long lasting period of political volatility that will thrust oil prices up in fits and starts. Be long oil. Probably be long gold and silver as well, as the charts for both precious metals are in remarkable tandem. You must protect yourself against the unleashing of political and social unrest through oil producing regions: Libya, Iran, Kuwait, Saudi Arabia, the Emirates.

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Video: Keller Expects Japan Supply Issues to Hurt Automakers

March 18, 2011

March 18 (Bloomberg) — Maryann Keller, principal of a self-titled consulting firm, and Karl Bauer, senior analyst at Edmunds.com, talk about the impact of last week’s earthquake and tsunami on Japanese automobile parts manufacturers and the global auto industry. They speak with Matt Miller and Carol Massar on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: Pehlivanova Sees LNG Demand Rising 3% After Japan Quake

March 18, 2011

March 18 (Bloomberg) — Biliana Pehlivanova, an analyst at Barclays Capital, talks about the global demand outlook for liquified natural gas following the earthquake in Japan. She speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Levkovich Says Japan Quake Unlikely to Hurt Global GDP

March 18, 2011

March 18 (Bloomberg) — Tobias Levkovich, chief U.S. equity strategist at Citigroup Inc., discusses the impact of Japan’s earthquake and tsunami on the global economy and financial markets. Levkovich talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Japan Grabbed More U.S. Debt Prior To Earthquake

March 15, 2011

WASHINGTON — Japan increased its holdings of U.S. government debt for an eighth straight month in January. But the second-largest holder of U.S. Treasury bonds will likely scale back its purchases of foreign holdings, and even sell off some, in coming months to divert money toward rebuilding a nation devastated by a powerful earthquake and an ensuing nuclear crisis. The Treasury Department said Tuesday that Japan boosted its holdings 0.4 percent to $885.9 billion in January. Economists said a reduction in Japan’s foreign holdings would put some upward pressure on U.S. interest rates. But they cautioned the change would have a limited impact. The Federal Reserve, which has been buying Treasury securities as part of its efforts to keep interest rates low, would move to counteract any significant increase in rates, they said. “Any impact from the sales would be short-term and relatively small,” said Nariman Behravesh, chief economist at IHS Global Insight. The Treasury report showed that China, the second-largest holder of U.S. debt, reduced its holdings for a third straight month, trimming them 0.5 percent to $1.15 trillion. Overall, foreign holdings of Treasury securities rose 0.3 percent to $4.45 trillion in January. This data is carefully followed to determine whether foreign countries still have an appetite for Treasury debt at a time of record federal deficits. Interest rates could rise if the biggest buyers of U.S. debt began trimming their holdings significantly. That would slow America’s economic recovery and increase Washington’s costs for financing the $14.3 trillion national debt. But Gregory Daco, another economist at IHS Global Insight, said the crisis in Japan makes Treasury securities more attractive, as does unrest Middle East and other problems facing the global economy. That’s because U.S. Treasurys are considered to be among the safest investments. Analysts at Bank of America-Merrill Lynch noted that the Bank of Japan announced a major asset-purchase program on Monday aimed at supporting the Japanese economy. They said part of that program will likely include further purchases of U.S. Treasury securities. That would ensure the Japanese yen does not strengthen against the dollar and hurt Japanese exports. “We believe this buying program will be the dominant story (affecting U.S. Treasury demand) over the near-term,” Ethan Harris, chief economist at Bank of America-Merrill Lynch, said in a note to clients.

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Japanese Crisis Filters into Global Macro Economy; Risk Currencies Exposed

March 15, 2011

Japanese Crisis Filters into Global Macro Economy; Risk Currencies Exposed

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New Zealand Dollar At Risk As Outlook For Global Trade Falters

March 12, 2011

New Zealand Dollar At Risk As Outlook For Global Trade Falters

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Stijn Claessens: Root Causes of Financial Crisis Remain Unaddressed

March 9, 2011

Crises are like stories; they have a beginning, middle and an end, and on occasion, we learn something along the way. In times of crisis, choices must be made. In the most recent global economic crisis policymakers moved quickly to stabilize the system, providing massive financial support, which is the right response in the beginning of any crisis. But that only treated the symptoms of the global financial meltdown, and now a rare opportunity is being thrown away to tackle the underlying causes. Without restructuring financial institutions’ balance sheets and their operations, as well as their assets -‒ loans to over-indebted households and enterprises -‒ the economic recovery will suffer, and the seeds will be sown for the next crisis. In our new paper we analyze the policy choices made during the crisis and compare them to a number of past ones. It turns out the phases of this crisis followed the same pattern as previous ones, but policymakers made different choices this time around. This has a lot to do with the distinct nature of this crisis; unlike those in the last 20 years, it was truly global and more complex to handle because financial institutions and markets are larger and more interconnected than ever before. Lesson # 1 – All choices have a cost, some with long term effects The complexity and severity of the recent crisis justified a rapid response to contain risks and restore confidence. While less deep restructuring early on lowered the costs in the short term, there may be higher costs in the years ahead. In particular, the policy mix chosen precluded thorough due diligence, and may reduce incentives to restructure assets. The risk is that, instead of a policy of triage, diagnosis-based resolution, and early asset restructuring, a muddling-through approach prevails. This approach, including accounting and regulatory forbearance, guarantees, and implicit public support stalls addressing nonviable banks and nonperforming assets. Many of the structural characteristics that contributed to the build-up of systemic risks are still in place today, and moral hazard has increased. In most countries, the structure of the financial system has changed little. In fact, concentration often has increased–on average for the 12 crisis countries we examined, the assets of the five largest banks have gone from 307 to 335 percent of GDP–as large banks acquired failing institutions. This complicates resolution efforts. The large-scale public support provided to institutions and markets–a contingent liability equivalent to one-fourth of GDP at the peak of the crisis–has exacerbated perceptions of too-important-to-fail. Lesson #2 – Find out what you don’t know and fix what you can Diagnose the problem to learn about the viability of financial institutions and support only those that are viable, and close or restructure the nonviable ones. Stress tests were conducted and the results published in the U.S. and in Europe in May 2009, and July 2010 respectively, but only after initial government recapitalization. While these stress tests restored short term investor confidence, their long term impact has been uneven, especially in Europe, in part due to different financial market perceptions about the credibility of assumptions used and remedial actions announced in conjunction, and subsequent events. As a result, European authorities have been compelled to engage in a new round of stress tests. Lesson #3 – Create a global playbook Restructuring the global financial system requires tools and policies that, just like banks, reach across country borders. It will also require policymakers to cooperate globally, just as they did at the peak of the crisis. Since the crisis, several countries have adopted more effective resolution schemes for large financial institutions, which should allow future losses to be borne by uninsured creditors. But many countries still lag in this respect, including in how to allocate losses. The new resolution schemes remain untested to deal with failures of large cross-border institutions, and much more needs to be done to enhance the supervision of cross-border exposures and related risks. The end of this story hasn’t been written yet, and we shouldn’t throw away the opportunity to change the way the global financial system operates for years to come. Via iMFdirect .

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Stacie Nevadomski Berdan: Women Move Up by Moving Overseas

March 8, 2011

As we celebrate International Women’s Day today, let’s celebrate the international women who work abroad. Women who made the leap, beaten the odds, and have been richly rewarded with a fast-tracked career: Higher pay raises, faster promotions and increased responsibility are the reasons to hop the on the next plane to Santiago, Stockholm or Shanghai. Plus it’s whole lot of fun. According to a recent study by ANZ recruitment agency Hydrogen Group, women who want to further their career should work overseas. ALL of the 2.637 professional women surveyed in Global Professionals on the Move 2011 said they would recommend working abroad. Wow — and the research that my co-author, Perry Yeatman, and I conducted in 2007 for our book, Get Ahead By Going Abroad , found similarly strong results: The trend is alive and well. The vast majority of the globetrotting women surveyed agreed saying that going overseas accelerated their career (85%), had a significant impact on compensation (78%) and made them better leaders and managers (95%). They also said they would advise other women to go abroad to advance their careers (83%). When I speak to professional women at all levels across various industries, however, I still hear many reasons why women think they, in particular, “can’t” go abroad. I would like to dispel these myths among my female friends because the evidence continues to mount that working internationally is probably the single greatest opportunity for women to fast-track their careers. Going global deserves a serious look. And so in honor of all the women who have done the unthinkable against so many odds over the last 100 years, I’ve listed — and dispelled — 10 common myths associated with why women can’t go abroad – because so many have and continue to do with significant success! Myth #1: Women don’t do as well as men overseas. Fact: On the contrary, studies indicate that women possess traits deemed critical in cross-cultural situations, such as style flexing, skill at building teams and relationships, communication skills, patience and persistence, and an open-minded approach to diverse and different circumstances. Myth #2: Women aren’t accepted as equals in international business circles. Fact: The international marketplace appreciates top-notch skills; gender doesn’t usually come into play. Some countries, of course, do not treat women as equals; each country must be assessed individually, however, and doing your homework is another critical component to success. The vast majority of women who work abroad agree that if you are good at what you do, you will be accepted in international business circles as a professional first. Myth #3: It’s only for young/junior professionals. Fact: Going abroad works at any stage or age in a woman’s professional’s career — it just does so in different ways. If you are junior, you may have less ties and therefore more flexibility. If you are middle management, you can jumpstart a stalled career or accelerate an already brilliant one. If you are senior, you may have the opportunity to manage a large-scale P&L or regional team, responsibility you may need to make the last leap to executive management — or simply round out your career with an international assignment. Myth #4: I can’t go; I’m married. Fact: While taking a spouse overseas with you undoubtedly complicates matters , it can be done. Of the 200 professionals surveyed, a full 40% were married. Souses find jobs upon arrival, reinvent their careers (as my husband did in Hong Kong), do not work and, a trend we’re seeing on the rise, ask to be transferred by their company as a fellow expat. However, there is no doubt that living abroad can put stress on a marriage. For both men and women, an unhappy spouse is cited as the most common reason why international assignments fail. Myth #5: I can’t go; I have children. Fact: If having children hasn’t stopped your career so far, an international move shouldn’t prove to be any more challenging. In fact, many women who lived overseas with children found maternity leave to be more generous and child care better and more affordable, thus enabling them to focus more on their jobs. In general, the younger the children the less complicated and disruptive the move will be. Raising global children in a cross-cultural environment may be one of the most beneficial things you can do for them in these increasingly global times. Myth #6: I don’t speak a second language. Fact: While language skills significantly enhance the overall overseas experience, they’re not mandatory in all markets (the exception is English in the United States and UK). If you don’t speak a second language, what cross-cultural skills do you have, and what value do you bring to the business? Your technical skills, management experience or in-depth knowledge of your company or industry should outweigh the need for language skills. With that said, whether you have a working knowledge of the local language or not, plan to study once you get there. Myth #7: My market is the most important, fastest-growing place for business. Fact: Whether you are in a sophisticated market like the U.S. or U.K., or in an explosive market like China, India or Brazil, multi-market experience is essential to understanding the global marketplace. Some professionals mistakenly think their market is “it”, but then a few years pass, currencies devalue and a new sleeping giant begins to wake up. The bottom line: Multi-market experience is critical to global growth. Myth #8: It’s not necessary in my field or industry. Fact: The breadth and depth of the global economy is astounding. Previously professionals thought only certain industries or professions needed to go global. Not true. Businesses compete at every level and across various markets. Constant technological advancements coupled with the booming growth in developing markets demand that almost every professional understands how to tap the global economy for sustained growth – possibly even survival 20 years from now. Myth #9: Out of site, out of mind. Fact: Perhaps the most compelling of the commonly givens reasons for staying home is that leaving the center of the action — headquarters — creates a fear of being forgotten. However, the opportunities abound to distinguish yourself for greater recognition and increased responsibilities. Your accomplishments will differentiate you, but you must network and find a mentor to help you leverage this success to greater gains back home. Myth #10: Such transfers are few and far between. Fact: While international assignments are competitive and tough to land, there are plenty out there and the numbers are on the rise — just don’t expect the expat packages of the past. Companies recognize the importance of international experience and realize the best way to get it is creating a global workforce. Do you have any more to add? Stacie Nevadomski Berdan’s next book GO GLOBAL! A Student’s Guide to Launching and International Career is due out this spring and Raising Global Children this fall.

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SPYRUS(R) Announces William H. White to Join Board of Directors

March 8, 2011

SAN JOSE, CA–(Marketwire – March 8, 2011) – SPYRUS, a leading provider of trusted mobility solutions, today announced the appointment of William H. White to its board of directors. William White has 23 years of banking experience in senior positions at Morgan Stanley, CSFB, and Bank of America, including Managing Director and Global Head of Capital Markets.

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House prices in Italy stable at pre-crisis levels

March 8, 2011

Unlike most countries in Europe, Italy did not experience sharp house price falls with the global financial crisis.

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Video: Herrmann Says U.S. Economy Running at `Really Good Clip’

March 4, 2011

March 4 (Bloomberg) — John Herrmann, senior fixed-income strategist at State Street Global Markets, discusses today’s U.S. February employment report, market reaction to the data and the outlook for the economy. Herrmann speaks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Robert Reich: The Real News on Jobs

March 4, 2011

Are we making progress on the jobs front? The Bureau of Labor Statistics reports 192,000 new jobs in February (220,000 new jobs in the private sector and a drop in government employment), and a drop in the overall unemployment rate from 9 to 8.9 percent. We’re heading in the right direction but far too slowly to make a real dent in unemployment. To get the unemployment rate down to 6 percent by 2014 we’d need over 300,000 new jobs a month, every month, between now and then. Overall, the number of unemployed Americans — 13.7 million — is about the same as it was last month. The number working part time who’d rather be working full time — 8.3 million — is also about the same. But to get to the most important trend you have to dig under the job numbers and look at what kind of new jobs are being created. That’s where the big problem lies. The National Employment Law Project did just that. Its new data brief shows that most of the new jobs created since February 2010 (about 1.26 million) pay significantly lower wages than the jobs lost (8.4 million) between January 2008 and February 2010. While the biggest losses were higher-wage jobs paying an average of $19.05 to $31.40 an hour, the biggest gains have been lower-wage jobs paying an average of $9.03 to $12.91 an hour. In other words, the big news isn’t jobs. It’s wages. For several years now, conservative economists have blamed high unemployment on the purported fact that many Americans have priced themselves out of the global/high-tech jobs market. So if we want more jobs, they say, we’ll need to take pay and benefit cuts. And that’s exactly what Americans have been doing. Employers have demanded wage and benefit concessions from their unionized workers and often got them. Detroit is creating auto jobs again — but new hires are getting about half the pay that auto workers were getting before. Airline workers are taking home 30 to 50 percent less than they did years ago. And so on. Conservatives say it’s not enough. That’s why unions have to be busted — and why some governors are seeking to abolish laws requiring workers to become dues-paying union members in order to get certain jobs. Hence, the fights brewing in the Midwest. Meanwhile, millions of non-union workers have accepted cuts in pay and benefits just to keep their jobs. Health benefits have been slashed, pension contributions from employers dramatically cut, wages dropped or “frozen.” Millions of private-sector workers have been fired and then re-hired as contract workers to do almost exactly what they were doing before, but without any benefits or job security. The current attack on public-sector workers should be seen in this light. The charge is they now take home more generous pay and benefit packages than private-sector workers. It’s not true on the wage side if you control for level of education, but it wasn’t even true on the benefits side until private-sector benefits fell off a cliff. Meanwhile, across America, public-sector workers have been “furloughed,” which is a nice word for not collecting any pay for weeks at a time. At this rate, the unemployment rate will continue to decline. But so will the pay and benefits of most Americans. Conservative economists have it wrong. The underlying problem isn’t that so many Americans have priced themselves out of the global/high-tech labor market. It’s that they’re getting a smaller and smaller share of the pie. Robert Reich is the author of Aftershock: The Next Economy and America’s Future , now in bookstores. This post originally appeared at RobertReich.org .

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FINANCE VIDEO: Clifford Bennett Market Overview: Global Markets Continue To Unfold

March 4, 2011

FINANCE VIDEO: Clifford Bennett Market Overview: Global Markets Continue To Unfold

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Global Investor Services, Inc. Appoints New Board Member

March 3, 2011

NEW YORK, NY–(Marketwire – March 3, 2011) – Global Investor Services, Inc. ( OTCBB : GISV ) (the “Company”), a leading provider of on-line financial education and analysis tools, is pleased to announce that Jeffrey R. Freedman has been appointed to the Company’s Board of Directors.

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PIMCO Continues Expansion of Active Equities Team With Hiring of Seasoned Investment Professionals

March 3, 2011

New Hires Add Expertise in Emerging Markets and Global Equities

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New Chief Financial Officer Joins INC Research

March 3, 2011

David Gill Brings Extensive Life Sciences and Technology Experience to Global CRO

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Ares Management to buy out Global Defense

March 3, 2011

Ares Management to buy out Global Defense

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White Digital Media Promotes Chad Recchia to Global Director of Marketing

February 28, 2011

Recchia Will Advance the Marketing Efforts of the Company to Boost Their Global Presence

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Dominique Strauss-Kahn: Latin America: Making the Good Times Better

February 25, 2011

Latin America has enjoyed tremendous economic dynamism and a rising quality of life in recent years. But, faced with new challenges, the question is: how best to sustain this progress? As I travel through the region next week–visiting Panama, Uruguay, and Brazil–I’m looking forward to hearing the views of government officials, parliamentarians, and university students on the key challenges facing their countries today. Here are three questions that I look forward to discussing during my trip. First, as the region enjoys a time of abundance– una época de vacas gordas –can there be too much of a good thing? Latin America’s economies are growing rapidly, buoyed by good access to external financing and high commodity prices. But potentially worrying signs of overheating are popping up–rising inflation, rapidly growing credit, and booming stock markets. We all know how this story can end if policymakers don’t act early enough to prevent boom from turning into bust. Guiding their economies to a soft landing may be the most important near-term challenge facing policymakers in Latin America today. Withdrawing the macroeconomic stimulus adopted during the global crisis should be the first step–and some countries are already doing so. Countries should probably begin with fiscal policy, to reduce the burden on monetary policy. In some cases, however, rising inflationary pressure calls for action now on both the fiscal and the monetary fronts. Exchange rate flexibility is also important. In the current setting, appreciation can help temper capital inflows, by making foreign investors think twice about future exchange rate risk. To protect financial stability, prudential measures may need to be tightened. Finally, while capital controls may be useful temporarily in some cases, they should not be considered a substitute for macro or prudential measures. Second, are countries equipped to handle future times of lean– la época de vacas flacas ? With the global financial crisis only just receding in the rear-view mirror, it may seem premature to think about possible future shocks. But the global economy remains exposed to downside risks, and it is always good to be prepared for a possible change in the economic weather. Latin America’s experience during the crisis–bouncing back from it much better than most other regions–shows the benefit of building policy buffers and reducing vulnerabilities in times of plenty. Over the last decade, countries across the region have strengthened their policy frameworks, lowered public debt, increased foreign reserve buffers, allowed greater exchange rate flexibility, and improved financial supervision and regulation. These all played a role in the region’s success. What about the road ahead? Let me mention two areas where countries in Latin America–and indeed around the world–would do well to focus their efforts. First, fiscal space. One of the most important lessons of the global financial crisis is that economies with healthier public finances had more room to offset the impact of the crisis, and to protect the most vulnerable. Going forward, countries should rebuild fiscal space–and in fact go even farther, where needed, to bring debts down to safe levels. Panama is one of the Latin American countries already working in this direction. Second, financial stability. We also learned from the crisis how quickly seemingly isolated financial problems can engulf the entire financial system, affect the broader economy, and spread across national boundaries. We need better tools to monitor risks both within and across institutions. Regulators and supervisors should be empowered to take early preventive action. Indeed, a number of countries in Latin America–including Brazil–are already strengthening macroprudential financial regulations. Finally, how best to share these times of plenty–across society, and with future generations? Como compartir–y prolongar–la época de las vacas gordas? The region has undergone a dramatic transformation over the past decade, lifting tens of millions of people out of poverty. In Uruguay, for example, the poverty rate has fallen by a remarkable 10 percentage points since 2004. Today, the challenge for the region is to embark on the next stage of its transformation–reforms are needed to sustain strong growth for generations to come, and allow the fruits of growth to be shared across all members of society. Reforms that boost productivity–such as revitalizing infrastructure and improving education and training–are clearly essential. Improving the business climate and strengthening governance are also important for a pro-growth strategy. But growth for growth’s sake is not enough. The region remains profoundly unequal, with about a third of its people living in poverty. Leaders across the region are rightly committed to tackling this problem. And making the social safety net more effective is an important part of the strategy. Here, innovative conditional cash transfer programs–for example, Brazil’s bolsa familia program–are playing an important role, and are in fact being emulated around the world. Raising social spending and improving the quality of service delivery–in education, health, and public infrastructure–are also key priorities. Latin America has come a long way over the last decade. But the region’s transformation is not yet complete. Leaders across the region should capitalize on today’s favorable conditions, transforming their countries to the next level, and ensuring that the benefits of growth are more widely shared. From iMFdirect blog

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The world’s housing market recovery has stalled: house price survey for the year 2010

February 25, 2011

The housing market recovery has stalled, according to the Global Property Guide’s latest house price survey.

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Clean Global Energy Limited (ASX:CGV) Received 12 Cent Buy Recommendation From Minelife Analyst

February 21, 2011

Clean Global Energy Limited (ASX:CGV) Received 12 Cent Buy Recommendation From Minelife Analyst

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Randall Kempner: Entrepreneurs Are Transforming The Developing World

February 18, 2011

At least once a day at work (and all too often at cocktail parties), I have the opportunity to explain to a newcomer in my field why I think small and growing businesses (SGBs) are key to long-term poverty eradication in developing countries. “If you look at the economic pyramid of a developing country, like the U.S.,” I tell them, “at least 50 percent of jobs and GDP come from small businesses.” Even as I write this, I’m eating Chinese take-out from Mei Wah, the second culinary venture of D.C. restaurateur Larry La. Outside of my office, I hear the vacuum of the nightly cleaning crew, managed by a local company that provides janitorial services to D.C. area businesses. Throughout my day I interact in a variety of ways with small businesses that are the fabric of the U.S. economy. But what does this have to do with poverty in the developing world? It turns out, quite a lot. Because while formal small businesses make up the backbone of “developed” nations, they contribute to only 16 percent of GDP and 18 percent of total employment in the “developing” world. That’s a big difference — and one that we at the Aspen Network of Development Entrepreneurs (ANDE) think can and should be overcome. Small businesses are essential because they create jobs, generate income and take a stake in the communities in which they operate. They also generate goods and services for local communities. When led by the right kind of managers, they grow — and create more jobs, more services and more wealth. And increasingly more often, they tackle social and environmental issues as well. Take, for example, Servals Automation Private Limited in Chennai, India. Servals’ flagship product is a Venus kerosene burner, which reduces kerosene consumption by 30 percent due to an innovative design that uses a single part in place of multiple tubes. Use of the stove reduces harmful emissions and saves the end consumer money. But that’s not all. Servals has also taken the next step to “de-engineer” the production process — breaking it up into a series of small pieces. They then created a manufacturing base in a village 50 miles from Chennai and worked with local self-help groups to train rural women to make the components. The women earn income, without having to leave their families and travel to the city. Servals is a prime example of the many positive impacts that SGBs have in developing countries. However, there are just as many obstacles standing in the way of their success. We believe that entrepreneurs need three key things to succeed: access to talented staff, access to markets and information, and access to capital. The members in our network support SGBs in accessing these resources, and are working together to build up the entrepreneurial ecosystems in over 140 developing countries. In the case of Servals, they received support from Villgro Innovations Foundation which included mentoring and business consulting, as well as help with its R&D, patent processing and fundraising. For the impact investing community, and even the broader investment community — SGBs provide a valuable channel and opportunity. More and more investors are realizing that they can reap financial rewards as well as social and environmental impacts by investing in these types of businesses. Our upcoming Impact Report will share research that demonstrates that in 2010 alone, 31 new funds targeting SGBs were launched. Peter Shrimpton of Heart Capital likens this new interest in SGBs to his experience surfing in his native South Africa. “For a long time it felt to us that we were standing on the beach with our wetsuits on, with our boards waxed up and looking at the ocean and the ocean was flat and people would ask us what we were doing. We would tell them that there was a tidal wave of social transformation coming, but they looked at the ocean and only saw poverty, despair and struggle at the grassroots level. In the past few years we’ve seen this global movement begin to take form, and we are beginning to recognize that we are not all standing on the beach alone with our surfboards, but in fact there is genuinely this global movement of social change and each one of us plays a very key role in terms of bringing about this change.” Which is not to say that we can all sit back and enjoy the ride. There is still much work to be done in this sector to enable us to grow the sector in emerging markets and truly measure the impact of these types of investments. We need to provide more support to entrepreneurs. We need to find more investment dollars. But as both the entrepreneurs behind Mei Wah in D.C. and Servals in India can tell you, a thriving small-business community is key to economic prosperity anywhere.

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Global Earth Energy, Inc. Announces the Addition of Mr. Richard Chenel to the Board of Advisors

February 17, 2011

WILMINGTON, NC–(Marketwire – February 17, 2011) – Global Earth Energy, Inc. ( OTCBB : GLER ) is pleased to announce an addition of our management team and the first of our new Board of Advisors, Mr. Richard Chenel.

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New Chairman Named for Cushman & Wakefield

February 16, 2011

Exor, the international investment firm that owns a majority stake in Cushman & Wakefield, announced that its current CEO, Carlo Sant’Albano, will become Chairman of the global real estate services firm. The move was one of several management changes announced by Exor as it expands its investments in new markets. Sant’Albano’s appointment will become effective following Cushman & Wakefield’s next board meeting in early March. He will be based in…

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New Chairman Named for Cushman & Wakefield

February 16, 2011

Exor, the international investment firm that owns a majority stake in Cushman & Wakefield, announced that its current CEO, Carlo Sant’Albano, will become Chairman of the global real estate services firm. The move was one of several management changes announced by Exor as it expands its investments in new markets. Sant’Albano’s appointment will become effective following Cushman & Wakefield’s next board meeting in early March. He will be based in…

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